WorldCargo news

JULY 2004

Doosan books PSA

PSA Corporation has ordered 42 RTGs from Doosan Heavy Industries of Korea for the phase 2 expansion of its Pasir Panjang terminal.This confirms earlier reports in WorldCargo News (January 2004, p1 and February 2004, p27) that PSA is not continuing with the automated bridge cranes installed at Phase 1 (called Stonehenge by PSA staff). It is understood that Doosan beat off competition from FELS of Singapore, ZPMC and a Japanese manufacturer. The order is said to be worth US$42 mill. Doosan will fabricate the structures in Indonesia and the first machines are slated for delivery from March next year. No information is currently available on the required lift height or span of the RTGs. This is Doosans second monster deal this year as it won the order for 49 RMGs for Pusan Newport Cor poration (see WorldCargo News, February 2004, p1). Orders for the quay cranes for both Pusan Newport and Pasir Panjang Phase 2 went to ZPMC.

Jib cranes get thumbs down

Harbour mobile crane suppliers and some of their customers are objecting to the clause in USOSHAs proposed new ruling that vertical tandem lifting (VTL) of empty containers can be performed only by a shore-based container handling gantry crane fitted with a load indicator device. In its written evidence to this months hearing in Washington,

VTL has become increasingly popular in some US ports DC, Gottwald mentions in particular the Tropical Shipping operation at Riviera Beach, Florida, where VTL using mobile cranes has been used extensively for more than three years, reportedly without incident.The Port of Palm Beach has also come out in support of Tropimill for a throughput capacity of up to 400,000 TEU per annum. Design work began in January, construction is scheduled to commence early next year and the terminal will be operational by late 2006. Phase II will require extending the quay and yard area to provide a throughput capacity in excess of 1.2 mill TEU per annum at an estimated cost of C$250300 mill and is expected to be completed by 2009. Prince Rupert Port Authority (PRPA) has been pushing to redevelop Fairview as a northern gateway to Canadian and US markets

cal Shipping, its major tenant.Tropical handles over 250,000 containers annually and is claimed to have the highest productivity of any Florida port operation and an excellent safety record. In addition to being widely used for mainstream container handling all over the world, harbour mobile cranes from suppliers such as Gottwald, Liebherr and Reggiane are equipped with LIDs capable of reading the weight of the VTL lift immediately as tension is placed slowly on the ropes. In its testimony, Liebherr has indicated that it will spend some time providing information on its crane and the design concept that allows it to handle containers in theVTL mode in an efficient manner. In addition to the mobile harbour crane question, OSHA has requested input on 14 issues it would like discussed at the hearing. These include: lifting three containers; use of single sided latchlocks; appropriate testing and inspection requirements; the extent of the ACEP programme; the status of inspections by the CSC; establishment of a reporting mechanism; the effect of wind; what training is necessary; the true extent of utilisation of VTL; information on incidents; terminals handling plans; who should keep inspection records for liftlocks; and finally, relative to deck loads, whether all containers should be prepared for tandem lift (see p28). for several years and the sale of BC Rail to Canadian National last year was the catalyst to get the project off the ground. The BC government gave PRPA C$17.2 mill from sale proceeds towards development costs and CN committed C$15 mill to upgrade tunnels so the northern line to Prince Rupert can handle double-stacked rail cars. Although Prince Rupert is some 600 km north of Vancouver it is ice-free and offers the shortest trade route between Asia and the Chicago rail hub. The terminal will be Maher Terminals first venture on the NAWC range.

MSC in Oz box terminal tilt

Maher goes west

Maher Terminals has been selected as the operator for a new container facility at Fairview Cove in Prince Rupert, northern BC. Fairview Cove was built as a forest products terminal and has been leased to Canadian Stevedoring since it opened in 1976. It is currently operated by P&O Canada after it purchased Canadian Stevedorings parent company, BCR Marine. The current lease expires at the end of this year and under an agreement with Maher Terminals will be converted to a dedicated container terminal in two phases. In Phase I the existing substructure and electrical services will be upgraded, crane rails laid and the vital rail intermodal area redeveloped, as Prince Rupert will be virtually an all rail port. Maher will install a minimum of three super postPanamax cranes initially. Phase I is estimated to cost C$140-200

Mediter ranean Shipping Co (MSC) has sent waves across the Australian waterfront after taking the first steps to set up a network of its own container terminals at major ports. The news has been a particular shock to incumbent stevedore, Patrick, for which MSC is the largest customer Australia-wide. Although there has been no formal announcement, the Fremantle Port Authority (FPA) is known to have selected MSC to redevelop Inner Harbour berths 11 and 12, for which expressions of interest were sought last year (see WorldCargo News September 2003, p10). Subsequently MSCs Captain Michele Bordiga, director of Australian and South African container services, declared the lines interest in the controversial third Port Botany terminal as well as in Melbourne, should a new opportunity arise. Fremantles decision has puzzled observers and angered the stevedores, although Patrick has maintained a calm public demean-

MSC has been selected to redevelop Fremantles original container terminal our. It is believed FPA received a significant number of proposals for the berths - the ports original container terminal - with most thought to involve extension of the facilitys current use in the automotive, general cargo and breakbulk trades. P&O Ports says Fremantles current container terminals are grossly underused, with little more than 25 per cent occupancy, amounting to two days out of seven at each stevedore. An additional terminal can only fragment already unprofitable volumes, P&OP says. According to local reports, MSC accounts for some 60 per cent of Fremantles container throughput. Sources say that while the Patrick terminal has suffered from some congestion, this is more a product of bad schedule-keeping and vessel-bunching than any productivity issues.

Reefer JV for MHI

Mitsubishi Heavy Industr ies (MHI) and Hitachi Ltd have reached a basic agreement to establish a joint venture company to merge MHIs air conditioning and refr igeration business with Hitachis Air Conditioning Systems Co Ltd. Though primarily aimed at the commercial air conditioning sector, the new company, to be formed on April 1, 2005 on an equal partnership basis, will also take over MHIs marine reefer business, including the production and development of container refrigeration systems. It will also continue the after sales service and parts supply business of Mitsubishi Marine Reefer. Over the past two years, MHI has lost ground to a resurgent Daikin Industries in the reefer container sector, with the latter winning significant orders from the major Japanese operators as well as P&O Nedlloyd, Maersk Sealand and OOCL. The tie-up with Hitachi is expected to boost MHIs prospects in the marine refrigeration market through the creation of a more efficient global operating structure, extending from development and manufacturing through sales and maintenance.

IN THIS ISSUE
NEWS
Enter the Interceptor Maasvlakte agreement Shannon box ports? AMPT for Doula Water Truck concept Coolboxx launched Boxes from Vietnam 2 5 6 7 11 13 16

CARGO HANDLING
XIth annual container crane survey - record 249 cranes 18 Another Chinese player 21 Weight and wheel loads 22 Raising RTGs 26 Vertical tandem lifts 28 Self-loading solutions 29

CHINA SURVEY
CT9 eases the pressure Shenzhen builds capacity Nansha shapes up CM takes the credit Strategy for Shanghai Dalian II underway CIMC on the chassis trail 31 32 32 33 34 34 36

CONTAINER INDUSTRY
Euro box builders fight on 37

WorldCargo news

CARGO HANDLING NEWS

in order to get it to the market. The inspection processes are initially based on finding fissile materials or even a nuclear bomb, although it is envisaged that inspection for all WMDs can eventually be performed, including biological and dirty bombs. Thus a full-scale, Interceptor machine would be a platform for various non-intrusive inspection technologies such as X-ray, biochemical, nuclear and so on. The inspections take place as the containers are being (un)loaded by the gantry crane, and there is no negative impact on (un)loading time. The four radiation detection gates at the Port of Rotterdam have given an alarm 5000 times since they were installed. But in none of the cases was illegal transport of nuclear material indicated.The gates seem to be sensitive to broccoli, ceramic tiles and PC monitors. In the four month test period some 200,000 containers were checked, without unacceptable hindrance of the logistical process. Despite the large number of false alarms, Dutch Customs are positive on the devices because of their preventive function. Gradually, 40 devices will be installed in the port area.

Enter the Interceptor

US-based container crane designer Paceco Corp is working with crane consultants Casper, Phillips and Associates (CPA), the Idaho Acceleration Center (IAC) and the Idaho National Engineering and Environmental Laboratory (INEEL) on a new product that can provide rapid, 100 per cent, non-intrusive inspection of containers for fissile materials, other potential weapons of mass destruction and contraband. Called Interceptor, the container handling technology comes from Paceco/CPA and the inspection and detection technology from IAC/INEEL. CPA is responsible for the scanning trolley design and is managing the mock trolley test programme, which is currently underway. This is aimed at verifying and calibrating the software for calculating radiation safety, evaluating safety from scatter radiation generated by various types of cargo, and demonstrating the ability to detect fissile material in 30-60 seconds of

TSB lands MTL TOS contract

Hong Kong-based terminal operator Modern Terminals Limited (MTL) has signed an agreement with Korean software supplier Total Soft Bank (TSB) to develop and implement its next generation terminal management system.The system, called Modern Terminals Operations System (MOTOS), is described as a blend of TSBs state-ofthe-art container terminal solution and Modern Terminals best practice. The new system will be based on Java 2 platform Enterprise Edition architecture and consist of three major modules: planning module (vessel and yard planning); operations module (operational administration); and management module (documentation, EDI, webbased information, CFS and equipment maintenance and repair). TSB is already using Java servers with its flagship CATOS terminal operating system but MOTOS is a new product with a new configuration designed to take advantage of the flexibility of J2EE. The first terminal to deploy MOTOS will be MTLs Kwai Chung operation where the ship planning module will replace Navis SPARCS and be integrated with other in-house applications developed by MTL. The first site for full MOTOS installation is likely to be MTLs new development at Taicang near Shanghai. MTL is one of several terminal operators looking for greater IT standardisation across its facilities and a more integrated terminal operating system (TOS).While some operators pursuing this strategy, notably Hutchison Port Holdings, have opted to develop their own core TOS most others are looking to partner with established market players. TSB has already been successful in this regard, forming a strateg ic alliance with Embarcadero Systems Corp. (ESC), the daughter company of west coast stevedore Marine Terminals Corp and a joint venture with Japanese stevedore and logistics giant Kamigumi. MTLs managing director Erik Bgh Christensen said MOTOS would deliver significant increases in operational efficiency and productivity. Furthermore, the partners will extend the solution into the mainland China market, enabling other industry players to experience a new level of manageability and automation over their business operations, added Christensen. China Merchants International Holdings has a 22.1 per cent stake in MTL, opening further opportunities to deploy MOTOS at terminals where both companies are partners.

Interceptor can act as a platform for various non-intrusive inspection technologies scanning time.The test criteria are still being determined by the Department of Homeland Security. If the testing is successful, the project team will apply for funding from the federal government to build a full size prototype for testing in a US port. It is hoped to have obtained the support funding late this year or early next, and it will then take about six months to build the prototype. Paceco makes the point that Interceptor is not a product that a port authority or terminal operating company would buy as it relates to national security issues, so political support is necessary

SAIC bags Jebel Ali/Latvia deals

Science Applications International Corporation (SAIC) has been awarded a contract by the Dubai Ports, Customs & Free Zone Corporation (PCFC) to supply and install an automated gate system at the Jebel Ali container terminal. The Intelligent Intermodal Solutions (IIS) system from SAICs Security and Transportation Technology Business Unit will identify trucks and containers as they move from the port entry to the inspection area, and then through the entrance and exit gates of the terminal. Vehicle and container identification lanes, optical character recognition (OCR) portal systems, gatestands, and automated equipment identification (AEI) readers will interface to the terminals central operation system to provide integrated and comprehensive identification, inspection and tracking solutions. PCFC handled 5.15 mill TEU in 2003.The new gate system will enable PCFC to more efficiently monitor and process traffic at Jebel Ali, thereby helping to improve throughput and enhance security. SAIC has also announced that its MobileVACIS cargo, vehicle and contraband inspection unit has been selected by the US Department of State for deployment at points of entry staffed by customs and border control agents in Latvia. VACIS inspection systems use gamma rays to non-intrusively inspect the contents of trucks, containers and cargo for purposes of manifest verification, contraband interception, and explosives, weapons or threat identification. The Mobile VACIS unit is one of five available configurations and is truck-mounted for rapid inspection of both stationary and moving vehicles and containers. Through its Export Control and Related Border Security Assistance (EXBS) programme, the US Government is assisting about 40 co-operating countries in preventing proliferation by granting training, equipment,and other forms of support that strengthen export controls, customs operations and border security.

New Arck sensors

France-based Arck Electronique is set to introduce a new sway/skew sensor for RTGs, RMGs, OET cranes and other low height bridge cranes up to 20m hoisting height. In addition, it is introducing a new spreader positioning sensor. The Sirrah LS08 sensor for yard cranes operates with infrared beacons on the X and Y axes and can be incorporated in a closed loop anti-sway system with feedback control. Skew movement can be regulated through the fitting of additional sensors and beacons. The new SP16 container detection sensor, fitted under the crane spreader, is an optical system based on six infra-red detectors, which measure the position of the edge of the container in relation to its optical centre. The optical view angle is 8 deg, which allows a square optical detection area of 250mm on each side, at a distance of up to 1600mm.This allows for a 100mm gap between two stacks of containers, says Arck. To provide a complete solution, adds the company, six sensors are required - two on the waterside and on the landside and one at each gable end. An RS422 serial interface is provided to communicate with the cranes PLC.

The Greek Port of Piraeus has been supplied with 12 new Mafi ro-ro MT 30 F tractors, with the purchase conducted by Athens-based D F Sarantopoulos SA.The main features of the new tractors include 4 x 4 drivelines, incorporating the latest 174 kW Volvo engine model TAD 720 VE and the ZF 6 WG 200 gearbox type.The cabin is integrated fully with ROPS and meets the latest safety standards. Additional features include a fully automatic A/C unit designed for driver comfort as well as an air suspended rear axle, a Eurohitch-Holland fifth wheel plate and the newlyconceived swivel seat console. The Port of Piraeus has stated that low maintenance and service costs were a major contributing factor towards their decision for choosing Mafi

July 2004

CARGO HANDLING NEWS

WorldCargo news

Tide turns at MOTSU sNext pay-as-you-go in Japan

Tideworks Technology has provided details of the customised terminal operating system (TOS) it is supplying for Military Ocean Terminal Sunny Point (MOTSU) at Southport, NC (see last months WorldCargo News, p3).Tideworks is part of a team led by Computer Sciences Corporation (CSC) that was selected for the project in a competitive tender. Tideworks portion of the project includes customising and implementing its Mainsail terminal management and Spinnaker planning solutions, which it will also integrate with multiple external tracking systems. MOTSU requires a high level of vertical integration information on the contents of the containers, in particular the net explosive weights (NEW), must be tracked by the TOS as well as the container number. Yard planning rules need to accommodate operational requirements of handling ammunition and explosive ordnance in a terminal setting. Tideworks President Mike Schwank says Tideworks track record in cost-effectively customising off-the-shelf products was a critical factor in winning the contract. Tideworks has previously customised Mainsail for Dole Food Company, integrating information on the fruit itself with standard TOS fields such as container number, etc. The two contracts, says Schwank, demonstrate Tideworks competence in the critical area of customisation and show what we can do for customers outside the box. Implementation of the software at MOTSU is scheduled for the third quarter of this year. Inspire Port Consulting and Solutions Inc (IPCS) of Korea and Japans Sumitomo Heavy Industries Ltd have secured a number of new customers in Japan for sNext, a pay-as-you-go service that uses a mobile telephone-based system to automate container terminal gate processing. With sNext, forwarders make bookings and appointments with container terminals through an Internet portal. All the information needed to complete container clearing procedures is then converted to a two-dimensional code that is sent by e-mail to a hauliers mobile phone. At the terminal the haulier swipes his mobile phone past a code reader at the gate and the transaction is processed. When sNext is combined with the Container Damage Check System, an OCR system that scans containers for damages, all checks and procedures required at Japanese terminals can be completed automatically. sNext was tested and deployed at Kamigumis Kobe Container Terminal in April last year. In February this year it was rolled out at Kamigumis Tokyo terminal and, from next year, will be used at the Hibiki container terminal in which Kamigumi and PSA Corporation are investors. sNext web IP modules have been selected by Japans Ministry of Land and Transportation for the Japan Container Logistics-net project, a community system that will connect all shipping lines, terminal operators, forwarders and truckers and Japanese Customs. IPCS CEO Henry Tomita says that there are no plans to market sNext in Korea, but the company is setting up a marketing office in Europe, after which he plans to target Australia.

Finning for Liverpool

Finning Materials Handling Ltd has been awarded a new, 6-year contract by Mersey Docks and Harbour Company (MDHC), to supply and service cargo handling plant and equipment at the port of Liverpool. The relationship between Finning and MDHC dates back to 1983. Finning will permanently locate a 12strong team at Seaforth Dock to provide 24 hour, on-site fleet service support for some 30 units, including seven SMV lift trucks and reach stackers, a 200 tonne Liebherr AT heavy lift crane, a 30 tonne truck crane and one city crane. With container ships regularly turned round in less than 12 hours and road haulage vehicles serviced in less than an hour on average, commented MDHCs engineering services manager Ben Stafford, Seaforth Terminal requires a lift plant provider able to guarantee the highest levels of fleet uptime. The deal with Finning is separate from MDHCs existing agreement with Carrylift, which covers straddle carriers, Mafi tractors, roll trailers and terminal trailers at Seaforth container terminal. Earlier this year, Finning lost the Stanton Grove equipment supply and maintenance contract in Liverpool Docks to Barloworld, which has recently ordered five Terberg tractors and some goosenecks and stands from Transtec for this important paper and timber stevedoring operation. As repor ted in last months WorldCargo News (p12), Barloworld has also won a major new contract from Forth Ports in connection with the automated import and distribution facility for StoraEnso group in Tilbury.

OOIL gate solutions

Gate technologies from Embarcadero Systems Corporation (ESC) will be installed at two New York/New Jersey terminals in the Orient Overseas (International) Limited (OOIL) group - Global and New York Container Terminal (exHowland Hook Container Terminal). ESCs SmartGATE suite and Intelligent Camera system will manage inbound and outbound gate operations at both terminals. The gates will incorporate card readers capable of reading the NY/NJ port authoritys SeaLINK ID cards, together with CCTV cameras linked to the Intelligent Camera data capture system for container and chassis numbers, voice communication systems and ESCs pedestal technology. Gate clerks will be relocated from separate gate booths to a gate control centre and truck drivers can remain in their cabs as their vehicle is processed. July 2004 3

WorldCargo news

CARGO HANDLING/PORT NEWS

which prevent a stopped crane from beginning to move, but are not dynamic brakes, so they are ineffective for stopping a crane that is moving. We recommend using brakes that can stop a moving crane, which is why we have specified the gantry wheel brakes. Yours faithfully, Rich Phillips Casper, Phillips & Associates Tacoma, Wa USA

Holding cranes
Dear Sir, The article on crane brakes (WorldCargo News May 2004, pp45-47) was interesting. Many brake manufacturers do not seem to realise why we recommend the wheel type brakes on the non-driven gantry wheels. We have seen many times where a crane will be in operation, with the storm brakes disengaged, when a microburst wind strikes and pushes the crane down the dock very quickly. We have not seen any case where a parked crane, with the gantry brakes set, has been blown down the dock. When a microburst wind strikes and the operator presses the emergency stop push button, the crane is moving at high speed.The storm brakes are static brakes,

Indian Liebherr RTG boost inroads

Following its breakthrough orders earlier this year for an LHM320G and two LHM 400G cranes from TM Logistics (part of Tata group for use at Haldia) and from South West Port respectively (see WorldCargo News April 2004, p2), Liebherr-Werk Nenzing has reported orders for five more harbour mobile cranes from customers in India. According to Liebherr, due to the rapid increase in demand for bulk products in general, mainly generated by China, several Indian ports were suddenly in need of cargo handling equipment, which could not only be delivered within a short time but would also be flexible enough to cope with the challenge of handling different cargoes on a frequent basis. Now Gammon has ordered two LHM 400Gs for Vizag, while Cardinal Logistics Port Ltd has ordered two 2-rope cranes (mainly for container handling) for its new concession in Kolkata and Ispat Industries Ltd has purchased an LHM 250 for handling coal barges at its Hoogly river port operation. To shorten lead times as much as possible, Liebherr is shipping most of the units in semi-erect form on heavy lift vessels and it has set up a local service station to support what it is confident will be a growing population of its harbour mobile cranes in India.

SCI plans move into terminals

State-owned Shipping Corporation of India (SCI) is planning to diversify into container terminal operations and will make a bid for the fourth container terminal at Jawaharlal Nehru Port (JNP) near Mumbai. SCI chairman and managing director P K Srivastava said the company was planning to sharpen its focus on other shipping related business.As part of this initiative, we are seriously thinking of diversifying into container terminal operations, he said. We are in talks with some foreign terminal operators to form a joint venture and bid for the fourth container terminal project at Jawaharlal Nehru Port. The JNP Trust has indicated that it could call for expressions of interest in the fourth terminal by the end of this year. The bid for the third container terminal at JNP was won by a consortium of Maersk India and Container Corporation of India (Concor), which offered the highest revenue share. Despite a number of objections being raised (see WorldCargo News June 2004, p10), new Shipping Minister T R Baalu has issued a letter of intent to the winner and asked MaerskConcor to sign a concession agreement within eight weeks. Once the third terminal becomes operational, Maersk Sealand will shift its container line operations from the nearby Nhava Sheva International Container Terminal operated by P&O Ports. This will mean a loss of nearly 20 per cent of P&OPs business at Nhava Sheva. According to Srivastava, it is a logical step for SCI to get into container terminal operations as many major container lines had gone into this business. He said that land-based operations such as container terminal operatons offered higher profit margins. We will be ready with the consortium as and when JNPT invites bids for the fourth container terminal, Srivastava said.

WorldCargo news
VOLUME 11 NUMBER 7 ISSN 1355-0551

Liebherr Container Cranes Ltd reports a surge in orders for RTGs, from existing customers. Gulftainer has ordered four 16-wheel machines, with 40.6 tonne SWL, for its operation at Khorfakkan Container terminal, UAE. Stacking 1 over 5 x 9ft 6in high and 7+1 wide, they will be supplied with Liebherr dc drives. Termont Terminal, the Cerescorp/Logistec joint venture in Montreal, has ordered two 1 over 5/6+1 RTG-16s, with an SWL of 50 tonnes for twinlift operation and again supplied with dc drives. Currently four more

Liebherr has reported new orders this year for five more RTGs from Canadian customers RTGs are under commissioning at Cerescorps Fairview Cove terminal in Halifax. Still in Canada, Cast Terminal, Montreal has placed a repeat order for three 8-wheeled RTGs, with Liebherr dc drive controls. The 40.6 tonne SWL machines stack 1 over 5 and 6+1 wide. Liebherrs latest container crane orders have come from Castelln Terminal Portuaria in Spain and Termont, Montreal (see p19).

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Private Ukrmorport?
The Ukrainian Transport Ministry plans to privatise The Ukrainian State Seaports Association, Ukrmorport, according to a self defence statement issued by the association itself.The Ministry has applied to the Anti-Monopoly Committee of Ukraine (AMCU) to allow Ukrmorport to continue its activities until its eventual reorganisation into a private firm. Ukrmorport was originally given a one-year mandate by the AMCU and this was later extended, but now AMCU is keen to point out a range of defects in the associations work, in particular the appropriation of economic activities. According to Mykola Pavyluk, who heads up the maritime division of the Ukrainian Parliaments Transport Committee, there is direct evidence that the Ministry is attempting to transfer full control of Ukrainian ports financial and economic activities to the privatised Ukrmorport,while evading the appropriate managerial responsibility. If this is the case, he contends, domestic seaports could face financial ruin, with further privatisation on the cards. Stage 2 of the new general and bulk cargo terminal has been completed at the Port of Yuzhny, part of the Greater Odessa zone. The new facility offers a 285m long berth (No 8), completed last year, which can accommodate vessels up to 80-90,000 dwt, including ships calling at Yuzhny for additional cargo, specifically Ukrainian metal, after partial loading at Odessa, Ilyichevsk and Mariupol. Storage space has been doubled to 2.5 hectares, new railway approaches have been provided together with a 285m long by 6m wide roadway which can support loads up to 20 tonnes/m2.

Gunnebo Lifting in Sweden has introduced a new size of hook in its GrabiQ roundsling hook range.The new RH5-8+ size (left in picture) is suitable for 4 tonne and 5 tonne web and roundslings.The RH hook is a one-piece forged component designed to allow simple replacement of a worn or damaged sling

www.worldcar gonews.com

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July 2004

PORT NEWS

WorldCargo news

Bayport moves on
Following a favourable ruling by a federal district court judge (see WorldCargo News March 2004, p17), the Port of Houston Authority (PHA) last month celebrated the groundbreaking for the Bayport Container and Cruise Terminal with a special ceremony. The intention is to build the new complex over 15 to 20 years as demand warrants. On completion, Bayport would have seven berths and a 378 acre CY, with an annual capacity of 2.3 mill TEU. Contracts totalling more than US$180 mill will be awarded for the first part of the project. In May, the PHA commission awarded a US$62 mill contract to Zachry Construction Corporation for wharf construction and dredging at Bayport, followed up last month with a US$37.9 mill contract to Zachry for construction of the CY and associated infrastructure at Phase 1A. As sur mised in last months WorldCargo News (p2), the PHA has awarded KCI Konecranes a contract worth US$10.19 mill for seven more 16wheeled RTGs. Initially these 6+1/1 over 4 machines will be deployed at Barbours Cut, but they will be built such that lift height and span can be easily increased should PHA wish to transfer (any of) them to Bayport. Opponents of the Bayport project are not giving up. Early last month various organisations filed a notice of appeal to the Fifth Circuit Court of Appeals in New Orleans. At the time of writing, no date for the appeal hearing had been set.

Big plans for Sedefport

The privately-ownedYildirim Group in Turkey has announced major expansion plans for Sedefport, which it acquired from the STFA construction and engineering group in January this year. Sedefport, set up in 1993, is strategically located in the industrial hinterland of Istanbul and Kocaeli along the north coast of the Sea of Marmara.Two major highways less than 2 km away provide good access to the region, which is heavily industrialised. Because of its location, it is thought that Sedefport will attract much of the container traffic which currently moves via Haydarpasa, the TCDD-operated facility near Istanbul, which the government has earmarked for closure in order to develop tourism facilities in the area. Annual handling capacity at Sedefport is put at 75,000 TEU and, says Yildirims president and managing partner, Robert Yuksel Yildirim, the plan is to increase this in two phases. At present the port is laid out in a U-shape with two narrow finger piers and in the first phase a new 305m long by 50m wide jetty will be built. Yildirim accepts that this is sub-optimal for container handling but it is the only solution which will allow normal operations to be carried on in the port while construction takes place.

The new berth would be equipped with two ship-to-shore cranes and capacity is estimated at 125,000 TEU. Under phase 2, a new mole will be constructed, with depths alongside ranging from 14m to 25/26m, because of local conditions in the Sea of Marmara. This calls for capacity to be raised to 400-500,000 TEU, with at least three more ship-to-shore cranes. Eventually 17-18 RTGs could be acquired for the yard. General cargo facilities will also be upgraded and expanded. Sedefports main container line customers today are CMA-CGM and P&ON. Yildirim Group is also planning a major expansion of its multi-purpose facilities at Gemlik (Gemport).

Maasvlakte agreement
The State, the municipality of Rotterdam and the Port of Rotterdam have finally reached agreement on financing for the construction of Maasvlakte 2, the construction cost of which is estimated at 2.575 bill. Under the agreement, the State will take a 33.3 per cent interest in Port of Rotterdam as of January 2006.This stake will be represented by new shares valued at 500 mill.The municipality will retain the remaining 66.7 per cent. This is an extremely important agreement, said the ports CEO Willem Scholten.The expansion will give businesses the opportunity to grow in Rotterdam. Maasvlakte 2 will be an excellent location. Right on the sea, and with good hinterland connections. Construction can start in 2006 and the first sites will be available for clients in 2010. That will be in time, in conjunction with the current increase in capacity on Maasvlakte 1, to accommodate the ongoing growth in Rotterdam. As previously reported, Maasvlakte 2 will be constructed in the North Sea, immediately to the west of the current Rotterdam port area. It consists of 1000ha of commercial sites, for container handling, chemicals and distribution. It will increase Rotterdams port area by 20 per cent. Other components of the agreement are the creation of a new 750 hectare area around Rotterdam, devoted to nature and recreation, and a number of projects geared to making more intensive use of the existing space in Rotterdams port area. Investments in the new nature and recreation area, the projects in the existing port area and the compensation for damage to nature caused by the construction of Maasvlakte 2 total almost E500 mill, says the port. The European Investment Bank (EIB) is lending 200 mill to the Port of Rotterdam for the construction of the EuroMax terminal. The new terminal will have a quay length of 1800m, a draught of 19.65m and a surface of 100 hectares and is slated to be progressively operational after 2007. ECT is taking on extra labour and equipment to accommodate rapidly growing throughput - up 23 per cent in the first six months of the year. Rotterdams overall container traffic rose by 13 per cent in the first semester, from 35 to 40 mill tonnes or by 12 per cent in unit terms to 4 mill TEU. ECT plans to invest 270 mill and, for the first time in a number of years, has hired 150 holiday workers. The growth is three times bigger than anticipated and is structural, says ECT director Jan Gelderland. In the past few years ECTs market share in the Hamburg-Le Havre range has dropped from 38 to 28 per cent but it estimates a recovery this year to 30 per cent. July 2004 5

WorldCargo news

PORT NEWS
of the Tarbert terminal, is owned by the state, which is looking to find a user for this flat land. Meanwhile, interim developments at Foynes will include a jetty extension, new warehousing and open storage for bulk cargo plus new container storage yards and capital investment in additional cargo handling equipment. A key element of the project will be to extend the jetty to support wide span container gantry cranes possibly by late 2005 or early 2006. A plan is currently being considered to link the two existing jetties and backfill the land between to provide a dedicated container yard. To kick start container traffic, the SFPC is in discussions with at least three feeder ship operators to form a joint venture to manage a new container liner service between Rotterdam and Foynes later this year. The service would be based initially on a 200-300 TEU ship providing a weekly service. It would use the existing three harbour mobile cranes (Liebherr, Gottwald and Nelcon), which are currently employed for grab duties but could easily switch to container handling.

Shannon looks to boxes

Irelands Shannon Foynes Port Co (SFPC) has approved a plan to invest 53.5 mill over the next five years to create new shipping, industrial and commercial facilities along the Shannon estuary, including a new container feeder terminal at Foynes. At the same time it will undertake a feasibility study for a new, deepwater, ship-to-ship transhipment terminal. The proposed ter minals greenfield site at Ballylongford, near the mouth of the estuary, has no inland transport links, but is relatively remote and accordingly may not attract the attention of environmentalists, particularly as it should provide employment in the depressed local economy. It is also adjacent to deep water and would require minimum dredging. Total cost to develop the facility is put at around 250 mill, which SFPC would have difficulty funding unless it can find a suitable partner. Discussions are currently underway with various terminal operators and shipping lines regarding involvement in the scheme.

JV for Yangshan
Shanghai Port Container Co (SPCC) has formed a joint venture with its state-owned parent company, Shanghai International Port Group (SIPG), to operate the five-berth Phase I of theYangshan container port, which will become operational next year. Shanghai-listed SPCC is forking outYuan2.55 bill (US$308 mill) to take a 51 per cent stake in Shanghai Yangshan International Container Wharf Co. SIPG will invest Yuan2.45 bill for a 49 per cent stake in the company. Rapid economic growth in the Yangtze River Delta region will see Shanghai handle around 14 mill TEU this year, SIPG president Lu Haihu said. Throughput in the Yangtze Delta is expected to rise to 43 mill TEU a year in 2010, with Shanghai handling 25 mill TEU. While Shanghais aspirations of continuing to be a major hub port is on track, these could be derailed if infrastructure fails to keep pace, Lu warned. He acknowledged that draught restrictions affect the ability of Shanghais existing terminals to take in mega-container ships, but said the development of the deepwater Yangshan port will help resolve the problem. The blueprint for Yangshans development provides for 20 container berths by 2010 that will boost Shanghais annual handling capacity by 15 mill TEU.As reported on page 34 of this issue, private sector participation will be allowed in the second phase of the Yangshan development, which is scheduled to be operational in 2006.

SFPC is discussing the establishment of a deepwater container terminal in the Shannon estuary with a number of terminal operators and shipping lines While the Shannon area handles Irelands second largest throughput after Dublin, it has no container or ro-ro freight traffic. After years of losses, SFPC finally reported a profit in its audited accounts. Over the next five years, the SFPC forecasts, the new strategic plan will deliver in excess of 15 mill profits to the Exchequer. The SFPC would again like to take advantage of its deep water availability, which can accommodate 185,000 dwt Capesize bulkers. The 650 acre site at Ballylongford, some six miles west

MOL/NYK in China car terminal move

Mitsui OSK Lines (MOL) and Nippon Yusen Kaisha (NYK) have signed a contract to share their technological expertise on car carrier terminal operations with Guangzhou Port Group Co Ltd (GPG) and to help GPG to develop car carrier terminals at the port of Xinsha. GPG plans to construct a motor pool with a storage capacity of 1,700 completed cars at the port of Xinsha by the end of October. MOL and NYK will provide technical expertise related to operational management of the motor pool, operations to move completed cars to the wharf, loading them onto ships and onboard cargo handling. With Chinas automobile market showing tremendous growth, full-scale shipment of completed cars from Guangzhou is slated to start next year. Advanced technology from MOL and NYK will contr ibute to higher loading efficiency and improved quality of completed car exports.

PPP in Mozambique
Following the Mozambican governments success in attracting foreign private sector partners to invest in the ports of Maputo and Beira and other combined port and rail schemes in the country, a private sector partnership (PPP) has been set up to manage the port of Quelimane on the coast of central Mozambique. A consortium of state-owned port and rail operator CFM and Cornelder-Mozambique of the Netherlands has been awarded the contract to run the port. CFM previously controlled the entire port and rail sector but is currently in the process of being slimmed down and restructured. The management company, called Cornelder-Quelimane, will be the second PPP set up in the country by the two partners, which already manage Mozambiques second biggest port, Beira. A spokesperson for CFM said the Ministry of Transport had awarded Cornelder-Quelimane a single contract, covering port maintenance and improvement, cargo handling and the provision of port services to visiting vessels, although the port itself will remain the property of the state. At present, most trade at the port involves vessels plying between different Mozambican ports. Quelimane was badly damaged during the countryscivil war, but it is hoped that ongoing repair work could increase its rle as an international port.

Xiamen International Container Terminals (XICT), a joint venture between Hutchison Delta Ports (HDP) and Xiamen Haicang Port Company, can now provide year-round service for 6th generation container vessels following the completion of a Yuan159 mill (US$19.2 mill) dredging programme at Xiamen Port in Chinas Fujian Province last month.The second phase of the dredging work involved the main channel and the Haicang sub-channel, which connects the Haicang Port Zone, totalling 43.6 km in length. The 4.3 km Haicang sub-channel has a designed breadth of 300m and depth of 14-14.5m. This channel dredging work has not only created an excellent environment for Haicang development, but has also strengthened XICTs leading position in the international shipping hub in Xiamen, said Edward Tang, general manager of XICT.Much credit goes to the Xiamen Municipal Government and the relevant government departments in promoting the development of shipping industry and the Haicang Port Zone 6 July 2004

PORT NEWS

WorldCargo news

Vic Dock deal irks P&OP/Patrick APMT for Douala

The Westgate Ports consortium and the Port of Melbourne Corporation (PoMC) have reached formal agreement on the development of the Victoria Dock distripark project (see WorldCargo News February 2004, p9). But grandiose language employed by the Victorian Government in announcing the deal has aroused the ire of stevedores P&O Ports and Patrick. PoMC will contribute A$37 mill and Westgate A$44.5 mill to the redevelopment of the 17.5 hectare site, which will feature in-terminal rail (directly linked to an inland port at suburban Altona), general warehousing facilities for breakbulk, on-site packing and unpacking, cold and cool storage, a product labelling and bar coding facility and high speed, high volume container scanning technology. A wine bottling and labelling plant is also proposed, meaning producers will be able to fill export orders at short notice. Initially the facility will operate over the existing Victoria Dock berths 22-24, with a new berth tentatively labelled Appleton G to be built as demand rises. Under the terms of the contract the berths will be common-user facilities, enabling any stevedore to operate over them at least until Westgates volumes justify some kind of priority berthing status. Hobart Ports Corporation is a member of the consortium in its capacity as a stevedore. While the new facility is specifically labelled as complementing rather than competing with the ports existing container terminals, government-generated publicity at the time of the announcement of the agreement referred to Melbournes third terminal, new competition in stevedoring and a projected 100,000 TEU per annum throughput. This has annoyed P&O Ports, and Patrick, which believed the matter of a third container terminal for Melbourne had been finally resolved with the failure of the (unrelated) Westgate project to get beyond the expressions of interest stage. Lets not confuse the issues, P&OP Australian managing director Tim Blood said.PoMC has already done a most thorough job of finding there is no market for a third container terminal in this port. Westgate Ports was selected ahead of P&OPs non-container division for the Victoria Dock plan. But Blood said that with both his company and Patrick now pressing ahead with further Swanson Dock container precinct investment in the belief there was no risk of dilution of their business from a third container handler, the governments descriptions were unhelpful. Both main container stevedores (which also have general/breakbulk facilities in the port) and Toll Holdings, which handles ANL Container Lines Bass Strait trade and a number of general/ breakbulk clients such as Gearbulk and POST, are also concerned about the level of the PoMCs contribution to the project, and the possibility of restricted access to Victoria Dock berths. A consortium led by APM Terminals (APMT) has been selected to operate and manage the Douala container terminal in Cameroon under a 15-year concession awarded by the Port Autonome de Douala (PAD). Under the agreement, the consortium will create a terminal operating company, Douala International Terminal (DIT), to assume responsibility for management, stevedoring and terminal handling of container and ro-ro vessels at the facility. The terminal features 660m of berth equipped with two IHI ship-to-shore cranes, a ro-ro ramp,17 hectares of container yard, and two railheads. The facility handled around 160,000 TEU last year, as well as 35,000 vehicles and 350,000 m3 of breakbulk cargo. The consortium plans to acquire a new gantry crane and other handling equipment for the terminal in 2006 and to install state-of-the-art IT systems. We are pleased to have secured a strong international partner, who will place the Port of Douala on the world map as the pole of reference for Central Africa, said Alphonse Siyam Siwe, general manager of PAD.

Vallarpadam OK imminent
Dubai Ports International (DPI), which put in the highest revenue share in the bid to build and operate the Vallarpadam international container transhipment terminal near Kochi in south India, is a step closer to getting the governments approval to start operations there. The finance wing of the Indian Shipping Ministry has given its approval to DPIs revenue share offer of 33.3 per cent and it is now awaiting the approval of the new Shipping Minister,T R Baalu.A letter of intent will be issued as soon as the Minister gives his approval. This should have come weeks ago, but national elections forced the Election Commission to put the award of all contracts on hold in the run up to the polls. After that a new government came to power and there were further delays. But the new government, led by Sonia Gandhis Congress Party, is already committed to construction of the container terminal at Vallarpadam. In his budget speech earlier this month, Finance Minister P Chidambaram, said,The government will facilitate the construction of an international container transhipment terminal at Vallarpadam in Kochi Port on a BOT basis. He also said he would attach high priority to developing port infrastructure in the country and regretted that Indian containers went to Colombo and Dubai for transhipment as most domestic ports did not have adequate draft to allow mainline vessels to call. Kochi has locational advantage compared to other major ports since it is closer to the main sea routes, the Finance Minister said. As reported in the June 2004 issue of WorldCargo News (p7), the Water Transport Workers Federation of India has asked the Shipping Minister not to privatise Rajiv Gandhi Container Terminal at Kochi, saying it was already making profits and those profits could increase fourfold with an investment of Rs1.5 bill (US$33 mill). Under the tender conditions, DPI will operate the Rajiv Gandhi Container Terminal untilVallarpadam is ready. DPI, along with United Liner Agencies of India, also operates the Visakha Container Terminal at Visakhapatnam Port in south India. July 2004 7

WorldCargo news

PORT NEWS

Tas port merger?

The Tasmanian Government has ordered a complete review of the states four main ports - Hobart, Launceston/Bell Bay, Burnie and Devonport - in a move widely seen as preceding a possible merger of administration and management. Although state-owned enterprises, the four ports currently operate with individual boards and managements and have a long history of competing vigorously. However, the downside to this rivalr y has been considerable overinvestment: at one stage all four ports had ship-to-shore gantries although, invariably, only one or two simultaneously enjoyed container line custom. The ports independence is also seen to have enabled customers to play one port off against another, leading to less-than-optimum outcomes in terms of statewide efficiencies. While past reviews have recommended specific ports focus on specific trades, eg containers/Bur nie, fer r ies/ Devonport, industrial/Bell Bay, this has so far proven untenable in local political terms. Minister for Infrastructure, Energy and Resources, Bryan Green, said the latest review will explore opportunities available to the ports in better servicing the states transport task. A key principle underpinning the review is that each port continues as a working port in its own right, servicing the needs of its regions and the state as a whole, he said. The process is aimed at developing a ports system, which can increase the value delivered to the state on a strategic basis. The three northern ports already co-operate to some extent, sharing some specialist personnel and services. However, local analysts believe the problem will be Hobart which, although the capital city port, is geographically isolated in the south of the state and has seen commercial traffic dwindle. Symptomatically, the now Pacific National-owned Tasrail, in conjunction with shareholder Toll, plans to close its Hobart waterfront

PD Ports Group changes hands

PD Ports Group Ltd has been sold for 172.5 mill by venture capital specialist Nikko Principal Investments Ltd to PD Ports plc - a company set up for the purposes of the acquisition. Nikko acquired the former Powell Duffryn businesses in 2000 and sold off the engineering interests such as Hamworthy and Powell Duffryn Rail Projects. It has been rumoured for some time that the ports, shipping, logistics and other businesses under the PD Ports umbrella would also be sold and a strategic review was carried out for Nikko by Rothschild. PD Ports plc has funded the acquisition through the placing of new ordinary shares and convertible bonds on the Alternative Investment Market (AIM). Nikko will hold 29.9 per cent of the shares and 28.2 per cent of the bonds and has undertaken not to dispose of them before January next year without City approval. New shareholders include financial institutions Artemis, Fidelity and Threadneedle Asset Management with 11, 10 and 8.6 per cent respectively. PD Ports comprises the Port of Tees and Hartlepool as well as stevedoring and maritime services at ports on the Humber,Trent and Ouse and at wharves on the Thames and the south coast of England, along with a substantial property portfolio, including a 131 hectare site in the North Docks in Hartlepool for which a major proposal has been developed for a mixed-use urban scheme. Its other businesses include PD Logistics and PD Truck and Van.

New facilities have been opened at Bell Bay to cope with rapid box growth rail terminal in favour of a new intermodal facility at Bridgewater on the citys northern outskirts. A A$1mill redevelopment of Number 7 berth at Bell Bay was formally opened last month. Empty containers will be stored at the new facility before being distributed statewide for use by exporters, which will provide more space at the ports Number 2 berth, where empties are currently stored.Work started on the latest project last November and will provide 30,000 m2 of hardstanding for container storage, an AQIS standard wash bay,a receival and delivery office and 36 reefer outlets. An important part of the project is the provision of a rail spur connecting Number 7 berth with the existing port lines and the port is working closely with Pacific National to facilitate additional rail access. Launceston experienced a 40 per cent increase in container throughput last year and a further 25 per cent so far this year.

More Pusan Newport equity for CSXWT

CSX World Ter minals LLC (CSXWT) has purchased an additional 0.5 per cent equity in Pusan Newport Company, a consortium of companies that won the concession for the development of the Pusan New Port project in Busan, South Korea.The transaction brings CSXWTs total shareholding in the project to 25 per cent. With the purchase of the additional shares, CSXWT becomes one of the largest individual shareholders in Pusan Newport Company. Samsung Corporation also holds 25 per cent in the consortium. In addition, CSXWT holds exclusive right to manage the new terminal for at least 30 years. Construction of the new terminal began in November 2001 and the first three berths are scheduled to be completed by the end of 2005, with operations commencing in January 2006. An additional three berths will be built and in operation by January 2007. The six berths, which make up Phase 1 of the development, will have a total length of 2000m, with an initial depth alongside of 16m and an annual handling capacity of 3.4 mill TEU. CSX World Crane Services, a subsidiary of CSXWT, is consulting on the purchase of terminal handling equipment to support the new terminal. 18 of the largest superpost-Panamax quay cranes in the world, with an outreach of 23 containers and a 140ft gauge, have been ordered from ZPMC, while 49 RMGs, ordered from Doosan Heavy Industries, will be deployed in the yard.

Djibouti bidding for hub status

Dubai Ports International (DPI) is to invest US$300 mill to establish a new container terminal at Doraleh in the Port of Djibouti, in line with the Djibouti governments openlystated plan to develop the port as an African hub by replicating Dubai ports free zone model. Feasibility studies are underway and the master plan of the new container terminal will be submitted to president Ismail Omar Guelleh early next year, said Dubai Ports, Customs and Free Zone Corporation (PCFC) chairman Sultan bin Sulayem. He added that construction work would start as soon as the master plan was approved. Jebel Ali Free Zone International has a 30-year (renewable) contract to manage Djibouti Dryport Safzs 17-ha free zone (DFZ).We are aiming at creating a strong logistical free zone similar to Jebel Ali Free Zone to serve the African continent, said DPI managing director Mohammed Sharaf. According to Sharaf, almost 60 per cent of the existing warehouses have been leased and another eight per cent are under option. Some 45 per cent of the 8 available land is leased with another 17 per cent under option. Some 46 per cent of the current investors are from Dubai, 46 per cent from Djibouti and the rest from Ethiopia. He added that due to the current high demand for quality facilities and services on the African continent, the project owners are launching Phase II of the development by constructing an additional 34 lease warehouse units, a 9100 m2 short storage warehouse for humanitarian aid cargo and a new 64-unit office complex for the trading and service sectors. Phase III should get underway within three years. The incentives and benefits offered by DFZ will mirror those at Jebel Ali, including 100 per cent foreign ownership, no corporate taxes, no import duties and 100 per cent repatriation of capital and profits. A recent Act of Parliament further enhances the benefits available for international investors and is expected to generate new port and airport traffic. Managed by DPI since 2000, the port last year achieved its highest ever container throughput 242,705 TEU, up from 177,954 TEU in 2002. July 2004

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WorldCargo news

PTP expansion continuing

The Port of Tanjung Pelepas (PTP) has completed two new berths and the land reclamation projects for the construction of a further six, under its phase 2 development programme.The new berths (Nos 7 and 8) are expected to raise annual handling capacity from 4.5 mill TEU to 6.0 mill TEU.They increase overall quay length by 720m to 2.88 km and will be able to handle the next generation of container vessel, which are expected to have an LOA in excess of 400m. Depth alongside the new berths is 19m and the quay has a crane loading strength of 100 tonnes per metre of rail, an increase of 25 per cent. PTP has also introduced a new wharf design in the second phase of development, which incorporates provisions to accommodate wider quay crane rail spacings of 45m, compared to its current 30.5m span. The increase is in anticipation of new crane designs that will be used to conduct operations on the next generation vessels as well as accommodating twin lifts. With the new berths operational, said CEO Datuk Mohd Sidik Shaik Osman, we have new capacity that will enable us to market the port more aggressively to the shipping lines. At the same time, the new designs will ensure that our facilities will remain viable well into the future. PTP reports it has recorded its highest first half year throughput ever - a rise of 25 per cent to 2,010,620 TEU, of which transhipment accounted for 1,834,407 TEU, an increase of 24.6 per cent. Local cargo volumes saw a significant 22 per cent growth, from 63,526 TEU handled in the first six months of 2003 to 77,756 TEU. The first half of 2004 saw 1584 vessels calling at the port, a 5.3 per cent increase from the previous year, which amounts to around three extra calls a week. In May PTP handled its 10th million TEU (after less than five years of operation) and it also claims to have set a new world productivity record with 340 gross berth moves per hour during an operation on the Maersk Sealand containership, A P MOLLER. Berths 7 and 8 will raise annual capacity at PTP from 4.5 mill TEU to 6.0 mill TEU

Maersk to up Pipavav stake

Maersk India, a subsidiary of Maersk Sealand, is negotiating to buy the entire stake of PSA Corp of Singapore and Sea King Infrastructure in Gujarat Pipavav Port Ltd, which operates Pipavav port on the countrys west coast. There have been frequent reports over the past few months that Maersk was interested in raising its stake in GPPL, the countrys first privately owned port. Bhavesh Gandhi, vice president of Sea King, told , Business Line newspaper that Maersk was negotiating to buy his companys entire stake in GPPL. Maersks acquisition of PSA Corp.s 20 per cent stake in GPPL and Sea Kings 38 per cent would give it a major ity shareholding in the company. Maersk currently owns a 12 per cent stake. Other investors in the company are CDC Capital, AMP of Australia, and New York Life. Earlier this year, GPPL asked for the governments permission to allow foreign investors to increase their stake in the company to 100 per cent from 49 per cent at present. It will be an important acquisition for Maersk, which has already won the right to develop and operate the third container terminal at Jawaharlal Nehru Port (JNP), near Mumbai in a joint venture with Container Corporation of India (Concor). Concor, which has a monopoly on moving containers by rail in India, is also said to be interested in buying a stake in GPPL. Some analysts believe that getting control of Pipavav will help Maersk because the JNP container terminal and Pipavav can complement each others traffic flows. P&O Ports, which operates the Nhava Sheva International Container Terminal at JNP, followed a similar strategy when it acquired Mundra International Container Terminal on the west coast from the Adani Group last year.

All change in Wallhamn

Eukor Car Carriers (the Wallenius, Wilhelmsen and Hyundai Motor Company line) and Grimaldi Naples have reached outline agreement with the Swedish Port of Wallhamn, located some 50 km north of Gothenburg, to take over the ports general cargo operations. Facilities include four berths along some 700m of quay, three ro-ro ramps, a PDI centre for new cars, two warehouses and two gantry cranes. Initially the deal is covered by a two-year lease but it is understood that the local commune (Tjiorn) is willing to extend this. The agreement is expected to lead to a considerable increase in activity at Wallhamm. Grimaldi already calls regularly at the port with its Euro-Med general ro-ro service. July 2004 9

INLAND/INTERMODAL NEWS

WorldCargo news

Enter Water Truck Few tears Eurotunnel fighting back

for SRA
UK-based Armstrong Technology, part of Babcock International, has come up with the concept of a Water Truck designed to transport containers and/or bulk freight on the River Thames between the Estuary and as far upstream as Windsor, west of London. An optional self-(un)loading system is incorporated in the design. Features include compact size (50m LOA by 6m width), shallow draught (2m at 375 dwt) and low profile (maximum 5m air draught). A dual propulsion system provides both a high degree of manoeuvrability and redundancy as propulsion can be maintained at reduced speed should any part of one system be lost. The Water Truck is able to achieve speeds of up to 8 knots but at the same time minimising the threat to the environment with its two azimuthing propulsion units and two 200 kW electric propulsion motors. Armstrong depicts the Water Truck as comprising a self-contained elevating gantry crane that incorporates a spreader for 20 tonne containers. Telescopic stabiliser outriggers to increase further the efficiency of the The Water Truck can be equipped with its own container handling system (un)loading process and a ballast system intended for draught adjustment and heel control can also be provided. Armstrong also emphasises the adaptability of the projects loading and unloading capabilities as alternative load transfer equipment can be specified or...removed if land-based facilities are available. Additionally the holds of the vessel are designed to accommodate compatible hopper-sided removable liners for bulk cargoes. The vessel can accommodate up to three crew members although only two are required for the vessel to be operated efficiently. Main machinery comprises two 300 kW generators, for propulsion, manoeuvring, ship systems or for (un)loading and ballast operations. Armstrong has acknowledged the help of, among others, Wynn Transportation Ltd, the operator of the ro-ro river/sea barge TERRA MARIQUE and river barge INLAND NAVIGATOR and McTay Marine, which built the River Dee ro-ro barge AFON DYFRDWY. The forthcoming demise of the Strategic Rail Authority (SRA), announced by the British government as part of its strategic review of the railways does not appear to have caused much upset among rail freight operators. EWS, Britains biggest rail freight operator, announced that it would be giving its full support to the outcome of the review ...[which] provides both the vision and clear direction required for the future structure of the railway industry. EWS fully agrees...that the government must take responsibility for the strategic shape of the rail network, and should decide the overall public funding of the railway, said CEO Keith Heller. For freight customers, the review has provided the stability and certainty they require to continue growing their use of rail freight services. By supporting the introduction of long-term track access contracts to the rail network for rail freight operators, the Secretary of State has demonstrated that the Government recognises the importance of rail freight services to Br itish industry and the economy. Heller added that he supported the transfer of responsibility for safety from the Health & Safety Executive to the Office of the Rail Regulator, which continues to be independent. Eurotunnels new Board has announced that it will be changing the pricing strategy for its passenger car and HGV shuttle services to halt the decline in turnover. No details have been released, but the implication is that prices of some services may go down to attract more throughput, while prices charged for others may go up where demand is reckoned to be more price-inelastic. Although the FIRST intermodal terminal project for Folkestone has been put on the back burner, Eurotunnel is pursuing its new rail freight operating licence and will accordingly relaunch its Europorte 2 service project (Calais-Metz-Basle in collaboration with German traction provider MEV) on a more solid basis. It is also ready to put forward a new framework governing its relations with other train operators - a reference to the problem it faces when the minimum tolls regime expires. The new management puts the potential for cost savings at a minimum of 40 mill per year and is also working on a refinancing plan to reduce the level of debt. Eurotunnels recovery is becoming possible, says group CEO Jean-Louis Raymond in a letter to shareholders. We have identified the conditions that need to be met, but time is short. A long-term plan will be finalised at the end of October, setting out Eurotunnels new financial and operational strategy.

Tracking box movements

The first results of a 3-year project funded jointly by the UK government and leading container shipping lines have been released by Imperial College, London. The aim of the project is to improve strategic modelling of container transport both within the UK and internationally. So far two models have been developed using complex systems methodology - the international trade model (ITM) and the UK distribution model (UKDM). Millions of container consignments are tracked through the systems each year from point of origin to destination and back again. Key data used in the ITM include a trade volume of 75 mill TEU supported by 30 mill TEU of empty returns required to support that trade (ie 105 mill TEU).This is consistent with most container traffic studies and forecasts, which are based on the number of lifts over the quay in ports worldwide - at least two for every container shipped (four or more in the case of transhipment). If the ITM volume is 105 mill TEU in 2002 and grows by eight per cent/year, it will reach 167 mill TEU in 2008. The UKDM has already thrown up some non-intuitive results which are said to be characteristic of complex systems analysis (in scientific disciplines such as oceanography). For example, it indicates that if the price for the Felixstowe-TeesportGrangemouth feeder service is increased, demand for it will go up! Instinctively, this would appear to be contradictory, but when the data are run and re-run and the results come up the same, something deeper is going on. The project leaders and backers hope, inter alia, that the studies and models will inject more light into the heated debate about port capacity constraints and identify more clearly the priorities for infrastructure improvements. Further information can be obtained from the project manager at Imperial College, Dr Jonathan Carter. Telephone: +44 (0)207 594 7322. Email: cwmanager@imperial.ac.uk

Intermodal maritime logistics service provider Van Dieren Maritime BV (VDM) is increasing its equipment fleet with the addition of 400 new 45ft palletwide high cube containers, each with a capacity of 33 Euro pallets. Intended to replace traditional trailers, the new boxes are being built in China by Jindo and will be supplied in two batches of 200 units by the Dutch 45ft container specialist Unit45. The first containers in the initial batch are already in use with VDM in shortsea and rail services, while the second batch is due for delivery towards the end of 2004.With branches in Ysselmuiden in the Netherlands and Riga in Latvia, VDM offers a wide range of services including door-to-door shortsea services utilising its own vessels to link Northern Europe with the Baltic region. In early 2004, the company significantly extended its rail network by taking over the IKEA Rail AB service between Duisburg in Germany and Almhult in Sweden. With interest in this service by potential customers still increasing, service capacity was increased last month from 30 to 36 trailer loads per train.VDM is currently negotiating for an additional 200 45ft containers for a number of new intermodal concepts which are now under development July 2004 11

WorldCargo news

INLAND/INTERMODAL NEWS

ACCC green light for PN/FA deal

The Australian Competition and Consumer Commission (ACCC) has cleared Pacific National (PN)s takeover of Freight Australia (FA) - but an increasingly bitter dispute with the Victorian government could still derail the deal. The ACCC gave the go-ahead after accepting court-enforceable undertakings from PN. Chairman Graeme Samuel said that, inter alia, the ACCC was concerned that the acquisition may make it more difficult for potential entrants to find rail terminal space in Melbourne. The ACCC was also concerned that the current main competitor to PN for freight between Melbourne and Perth, Specialized Container Transport (SCT), is currently reliant on FA to provide locomotives and crew. In response to the concern regarding terminals in Melbourne, the ACCC was offered undertakings from PN that would facilitate entry to the Somerton rail terminal.This terminal is owned by Austrak AFM Pty Ltd, but the rail tracks between Somerton terminal and the mainline interstate track are currently controlled by FA. PN has undertaken to give control of those tracks to the Commonwealth Government-owned Australian Railtrack Corporation. In response to the concern regarding SCT, the ACCC took into consideration evidence from PN that it had very recently agreed with SCT to a longer contract on the existing terms. TheVictorian government, whose director of Public Transport must also green-light the deal, is unmoved by the ACCCs approval, however, when the issue of FAs 45-year lease of the states rail infrastructure remains unresolved - and this in tur n has led FA owner RailAmerica to threaten legal action. FA bought the formerV/Line Freight in 1999 for A$163 mill, of which A$90 mill was an upfront payment for the lease. The government is now attempting to buy back The Victorian government has still not given the green light to PNs takeover of FA the lease for just A$2 and enforce new access, safety and maintenance criteria. FA has long argued that he government denied it the ability to charge thirdparty access fees that permitted appropriate recovery of the companys A$130 mill additional investment in long-neglected tracks, signalling and other infrastructure. PN shareholder Toll says that while it believes an accommodation with the government can be reached, FA will be worth substantially less than the agreed price of A$275 mill without the leases.

Havenspoorlijn renewed
The Rotterdam port railway line (Havenspoorlijn), the 40 km long section of track from the Maasvlakte to the Kijfhoek shunting yard in Zwijndrecht, has reopened after extensive renewal work. The line is intended to be the first part of the Betuwelijn, the 160 km new, dedicated freight rail line to Germany. Trains no longer have to stop at Rail Service Center (RSC) Waalhaven, but instead can follow a shorter, more direct 4 km link, which provides a major increase in capacity. Other bottlenecks have also been removed, for example, by constructing a new tunnel under the Botlek. In addition the RSCs at the Waalhaven and the Maasvlakte have been extended and the railway yards Maasvlakte West, Europort and Botlek have been adapted to accommodate the new line. Technical questions continue to dog the Betuwe line.The specified ERTMS/ ECTS safety system has not yet made the European safety standards and is not fully available. First tests of ERTMS/ECTS will commence in May 2005 along the Sliedrecht to Gorinchem line. It is hoped that the Betuwe line can then be equipped with the new system in one fell swoop, rather than gradually over time. There are also fears that the cost of building the Betuwe line will price it out of the market. Overall construction costs are now put at 5.2 bill, with a yearly maintenance bill of 20-27 mill.

Green Kid on the block

IDC Distribution Services Ltd (IDC) has signed a Letter of Intent with RailPower Technologies Corp to purchase a Green Kid hybrid yard locomotive for the new, near-dock intermodal rail facility it is building at Fraser Surrey Docks, BC. RailPowers hybrid switch engines feature small diesel gensets and large banks of recyclable lead-acid batter ies. Remanufactured from existing switcher locomotives, they are claimed to cut NOx and PM by 80-90 per cent greenhouse gases and diesel fuel consumption by 5080 per cent compared to conventional yard switchers. IDC will operate its new unit with RailPowers Beltpack remote control system. As previously reported, the new Frazer Docks IY is slated to begin operations next month. 12 July 2004

INLAND/INTERMODAL NEWS

WorldCargo news

FINESSE moves on Hippo trounces Rhino in Italy

The FINESSE project - the transnational partnership aiming to develop new and sustainable intermodal freight transport services between the UK and mainland Europe (see WorldCargo News November 2003) - has appointed consultants to undertake key strategic and pilot feasibility studies to drive the project forward. Meeting in Dover, the core executive of the ten-partner FINESSE project, which is match funded to the tune of 0.5 mill by the European Regional Development Fund, has commissioned the Stamford Research Group to undertake the studies, which will enable the production of business and action plans for the launch of new services. The underlying policy objective of the FINESSE project is to shift freight from road to rail and the objectives of the studies now commissioned are to: Examine the policy and market environment within which intermodal rail and ferry services could be launched on the Dover Straits freight corridor between the UK and mainland Europe, involving the ports of Zeebrugge, Boulogne, Calais, Dunkirk and Dover. Establish the key issues relating to the rail network, land availability and other surface access in the hinterlands of the five ports. Provide the FINESSE project partners with the information required to develop detailed business plans for services, secure operators, examine funding issues for specific services and develop an Action Plan leading to the launch of the services themselves, where feasible, between Belgium and Dover, and between Boulogne, Calais, and Dunkirk and Dover. An experiment to see whether the Autostrade del Mare (sea motorways) concept in Italy can out compete long-distance trucking was recently organised from Livorno to Palermo. Two loaded 40ft containers left Livorno at the same time, one on a truck dubbed Hippo on Grimaldi GNVs ropax MAJESTIC and the other on a modern road rig dubbed Rhino with two drivers to share the driving. MAJESTIC covered the sea voyage of 350 n/miles (650 km) in 19.5 hours and turned up one hour ahead of the HGV, which took 20.5 hours to cover the 1260 kms This included a total of 120 minutes of stops and 18.5 hours on the move. Total costs for Rhino came to 825, including 450 litres of fuel, motorway tolls (100), driver expenses, tyre wear and the cost of the ferry across the Straits of Messina. Total costs for Hippo came to 641, including freight, bill of lading and the drivers cabin and meals. Dramatic savings appear possible, therefore, on the Livorno-Palermo route, not counting the benefits of decongesting the highway.The example given is 3500 tonnes of goods, for which one 85m LOA ship with a 3900 kW engine and two 740 kW generators averaging 14.5 knots will suffice. The same load would require 116 HGVs. In terms of fuel costs, the sea voyage costs US$2320 compared to a total of US$55,123 for the HGVs. The Sicilian regional government (RS) is introducing an environmental bonus for trailer operators if they make a domestic shipping voyage, which wipes atr least 400 km from the road mileage.This threshold is designed not to interfere with Straits of Messina traffic with o/d points in Calabria. RS has allocated 35 mill for the 2004-6 period in a bid to increase coastal shipping by 30 per cent.

Three lining up in France

Three rail freight operators are looking for licences in France under EU open access rules - Rail4Chem, DLC and Connex-Cargo.They are all interested in routes linking Switzerland/Italy with northern seaports or with the UK via the Channel tunnel.The reason is that access via Modane is getting more and more difficult because of the improvement works on the Frjus tunnel. France has a reputation for dragging its feet when it comes to rail liberalisation because of the entrenched position of the rail unions and the reluctance of management cadres to embrace change. However, a licence has been awarded to Europorte 2, the new Eurotunnel company set up to start a Calais-Metz-Basle service in collaboration with MEV, the independent rail traction company based in Ludwigshaven, Germany. Eurotunnels new Board is revising this project, so the licence is not currently active (see page 11).

Coolboxx launched
Three Dutch companies Visbeen Transport Groep BV of Nieuwe Tonge, PostKogeko BV of Maasdijk and Geest North Sea Line BV of Rotterdam are joining forces to launch Coolboxx, a new panEuropean initiative that will provide shippers of temperature-controlled commodities with a range of intermodal alternatives to road transport. The three partners will each hold onethird of the equity in Coolboxx, which is scheduled to be fully operational by the last quarter of this year, and contribute equally in the provision of new 45ft reefer containers to a common pool. The partners expect to have around 300 x 45ft units operational within two years. Initially, Coolboxx will focus on providing services between Continental Europe and the UK, but the new venture will not operate under any specific geographic restrictions. The company has identified Iberia-Benelux/Germany and Benelux/Germany-Scandinavia as having strong potential, as well as traditional reefer markets such as Italy and Ireland. Visbeen and Post-Kogeko are both operators of large fleets of refrigerated trucks and trailers, while Geest is a leader in European intermodal transport with a fleet of around 4,500 x 45ft dry cargo containers. Initially, each of the three partners will market Coolboxx services individually through their own sales networks, but it is expected that Coolboxx will have its own sales and marketing team in due course. July 2004 13

WorldCargo news

INLAND/INTERMODAL NEWS

New intermodal car

BC Rail hooked up to CN engine

Canadian National Railway (CN) will take over the operations of Canadas third largest railway, BC Rail, later this month following approval by Canadas competition bureau. CN was selected as the operator over several other Canadian and US railways last November after offering C$1 bill for a 60-year lease, elimination of the provincial governments C$489 mill debt and a shopping list of new facilities and regional development deals for the northern half of the province. For its C$1 bill, Canadas largest railway will receive 1500 miles of track serving the resource-rich interior of Canadas westernmost province and a north-south link between the Port ofVancouver, BC, and the Port of Prince Rupert. As previously reported, the deal also provides a springboard for the development of a container terminal at Prince Rupert (see page 1) and CN has already committed to increasing the dimensions of tunnels along its North Line to accommodate doublestack container trains. According to Prince Rupert port authority president and CEO Don Krusel, once completed the new terminal will offer shippers the deepest natural harbour on the western seaboard, a route that is 440 miles closer to Asia than any other port on the west coast of North America, the shortest route between Asia and the Chicago hub, direct ship-to-rail unloading, a new Midwest Express rail service using a superior rail line without the steep grades and slow speeds associated with other routes through the Rocky Mountains, unlimited capacity for shippers faced with congestion problems at other major west coast ports and immediate access to ocean shipping lanes, meaning reduced pilotage fees.

Poprad, Slovakia-based wagon builder Tatravagnka AS has recently come up with a new, 80ft intermodal flatcar, designated Sggrss 80, for ISO containers (4 x 20ft, 2x 40ft or 1 x 40ft and 2 x 20ft).The two-platform wagon is equipped with three type Y 25 Ls(s)d1 bogies and is both UIC and RIVcompliant. The first 200 sets have been ordered by German-Czech intermodal operator Metrans Length over buffers is 26.39m, which offers a saving of 710mm compared to the UIC standard, and deadweight is 25,300 kg, well within the UIC 27,000 kg limit for 80ft cars. These construction pa-

The new car will cut the cost of transporting boxes, says Tatravagnka rameters, believes Tatravagnka, will translate into direct cost savings on a per container transported basis. Standard features include a blocking device to prevent unauthorised opening of container doors without having to load containers with the doors inboard. To facilitate fleet management and improve uptimes, the brakes are supplied with a diagnostic system.There is easy access to all the measured brake elements and analysis of the brake parameters can be carried out immediately.

A Series O semi-trailer from Cometto in Italy has been used by Spanish transport company Egodi to transport locomotives over a particularly difficult, 120 km stretch of road between Seville harbour and the Almodovar del Ro rail station in Crdoba, in connection with the construction of the new Crdoba-Mlaga high speed rail line. The 19.3m long, 3.75m tall and 2.72m wide locos weigh 129 tonnes with bogies and 62 tonnes without.To ensure uniform load distribution, Egodi used the Cometto SO35E configuration, that is front gooseneck with hydraulic lifting, three front and five rear axles (total 32 tyres).The vehicle has hydraulic suspension to raise and lower the load and ensure equal load distribution and all axles are steered through hydraulic controls from the gooseneck

Rhne-Sane barge traffic develops

Container barge distribution to/ from Marseilles-Fos on the RhneSane system reached 29,000 TEU last year, an 11-fold increase since 2000 (2500 TEU), while pure river container traffic on the axis has grown by 20 per cent. The target for 2004 is 40,000 TEU and in May the service operator, Rhne Sane Conteneurs (RSC), doubled frequency between Fos and Lyon from two to four per week. In March customs and administrative procedures were simplified, making the water mode more accessible to the market. With its Fos 2XL expansion, the Port of Marseilles is faced with an inland distribution problem as the regional road network is already saturated and the water mode still offers plenty of untapped potential. One of the goals of the cooperation agreement signed in 2002 by the por t author ity (PAM), Voies Navigables de France (VNF) and Compagnie Nationale du Rhne (CNR) is for the inland waterway mode to achieve a 10 per cent share of inland distribution by 2015. PAMs director general Eric Brassart says that the port needs to do still more to improve the services provided to barges, notably by remodelling the berth used by the barges on the minerals quay. In addition, regular barge callers should receive priority treatment. By 2006 Lyons Edouard Herriot installations should have a second container terminal, with a 200m quay served by a mobile crane and a 10 hectare yard with a rail link. Michael Margnes, president of CNR, the majority shareholder in Lyon Terminal, says that CNR, is prepared to put up 60 per cent of the total cost, estimated at 16.5 mill. North of Lyon but still accessible to broad gauge traffic is the Port of Pagny, on the Sane, where the first distribution centres at Gazelay have been built in anticipation of a new container terminal. Figures from VNF show that last year total traffic on the Rhne-Sane rose 12 per cent in tonnage terms and 14 per cent in tonne/kms.

Russian Railways container boom

In response to the boom in containerisation in recent years, Russian Railways has begun setting up daughter companies to carry containers by rail, road and sea. The fleet of flatcars and railway containers has been handed over to TransContainer and at the end of April this subsidiar y launched a pilot container train from the Port of Vostochny in the Russian Far East to the gauge break station at Brest in Poland. Loaded with 100 TEU and travelling 957 km a day, the train covered the entire Russian territory from east to west within 10 days instead of the 11.5 days it was scheduled to take. Another block train with 46 x 40ft containers bound for Brest was dispatched from NakhodkaVostochnaya station on 6 July at 19:27h Moscow time.At the time of writing it is on course to reach Poland on 16-17 July. Transcontainer is considering time-chartering container ships to serve Vostochny from Busan and Shanghai. Similar services may be introduced between the Russian Baltic and Western Europe. TransContainer has an extensive agents network at railway 14 container terminals. For the first time in the rail industry, says chief executive Pyotr Baskakov, an agents network has been formed which spreads not only over Russia, but also abroad. This will allow us to deliver containers all around the world, using the most sophisticated logistics circuits. Russian Railways is also taking measures to ensure free access to rail infrastructure for independent container carriers. According to the companys press service, it has worked out a comprehensive container transport development programme, which specifies a 19 per cent/year increase in container traffic between 2004 and 2010, to reach 30 mill tonnes of containerised cargo in that year. The fleet of 178,000 containers will be increased every year by 8000 and the number of flatcars by 2000/year. Rail intermodal terminals (officially numbering 613) will be upgraded and up to 150 container handling machines (masted lift trucks, reach stackers and RMGs) will be acquired. Russian Railways investment budget in container transport for 2004 alone is reported to be US$150 mill. July 2004

TANK CONTAINER NEWS

WorldCargo news

ITCO issues anti-trust guidelines Repo costs hit Stolt

The International Tank Container Organisation (ITCO) has issued a set of guidelines to help ensure that member companies do not transgress national, US and European competition laws. The recommendations, which take the form of a series of dos and donts, have particular relevance for companies attending industry meetings, such as those association events organised by ITCO, especially in light of the current sensitivity of government authorities to allegations of price-fixing by chemical logistics service providers. To date, investigations have focused on several of the leading chemical parcel tanker operators and their possible collusion in setting rates prior to contract of affreightment negotiations with charterers.The US Department of Justice and the European Commission are investigating these allegations and, in addition, a number of civil suits have been initiated against ship operators by a series of third parties, including several charterers and one competing shipowning operation that was forced into liquidation. Two of the major ship operators - Jo Tankers and Odfjell Seachem - have reached plea bargain deals with the US Department of Justice in which they have agreed to pay fines of US$19.5 mill and US$42.5 mill respectively and have a number of their senior officials serve short sentences in US open prisons. Although attention has focused solely on ship operations until now, the StoltNielsen Transportation Group reveals in its half-yearly results that it has received a subpoena from the US Department of Justice seeking documents relating to its tank container business. The ITCO anti-trust guidelines seek to raise awareness of the need to maintain high ethical standards when logistics service providers meet together in large numbers, such as in the plenary sessions of ITCO meetings or at associated social functions. Companies need to ensure strict performance in the areas of oversight, supervision, record keeping and vigilance. As regards the donts, companies should not discuss with competitors or exchange any information on prices, production, transportation rates and market procedures that is not in conformity with competition law. Despite continued growth in both fleet size and the volume of product carried in its intermodal tanks during the second quarter of 2004, the tank container division of Stolt-Nielsen Transportation Group (SNTG) reports that income from operations for the latest quarter is one-third below the figure achieved in the equivalent period last year. SNTGs tank container divisions income from operations in the second quarter of 2004 was US$4.5 mill, down from US$7.0 mill in the second quarter of last year, said Niels G Stolt-Nielsen, chief executive officer of Stolt-Nielsen SA, the parent company.The difference between the two results is primarily due to the higher repositioning costs for empty tank containers this year. Competition in the intercontinental tank container markets served by Stolt remains intense which is keeping margins across the industry under pressure. Although Stolt has added 1,350 tank containers to its fleet over the past year, raising the total complement to 16,923 units, and shipments are up by 7.4 per cent on a year-to-date basis, income is still down. Fleet utilisation levels continue to be steady at around 80 per cent.

Hoyer bucks the trend

The Hamburg-based Hoyer Group increased turnover by 2.5 per cent during fiscal year 2003 in spite of weak economic activity in its key logistics markets in Europe. Revenues climbed to over 653 mill, with approximately one-half of the total being generated in Germany. Profit after taxes also increased slightly to approximately 6.6 mill. The results stem from our strategic restructuring process in 2003, with our group activities being reorganised into five individual business units, each having responsibility for its profit and loss performance, said Thomas Hoyer, spokesman for the Executive Board. We anticipate additional turnover growth for the current year as we build upon our pan-European market activities to open up new business in our key areas. Although the overall chemical logistics market expanded by only some 1.7 per cent in fiscal 2003, the Hoyer ChemiLog business unit achieved a 9 per cent increase in sales over the same period a year earlier.With sales of 327 mill in 2003, this unit accounts for half of the turnover of the overall Hoyer Group. Hoyers global activities in the downstream petroleum industry are now pooled in the Hoyer PetroLog business unit. Hoyer PetroLog generated a turnover of 134 mill. Newly acquired contracts in Benelux during 2003 have expanded the activities to three more countries and this growth is to be continued in the years to come,. Growth is also a top priority for FoodLog, the groups food logistics service provider, which achieved sales of 51 mill in 2003. Hoyer GasLog, too, is able to reflect on a successful year. It achieved a turnover of 66 mill in providing its specialist services to the gas industry worldwide in 2003, especially in the transport of cryogenic and compressed gases. The Hoyer TechniLog business unit, which embraces all the logistics activities and specialises in the provision of services which are not concerned purely with transport, such as decanting, blending, storage and transhipment, cleaning facilities, workshops, depots and intermediate bulk container, recorded a turnover of 72 mill in 2003. The other major Hoyer chemical logistics activity is Hoyer-Odfjell, a joint venture established in 1999 with Odfjell of Bergen in Norway, which is now the second largest tank container operator in the world. Hoyer-Odfjells turnover of US$100 mill in 2003 reflects growing business activity in the Asian, Middle East, European and American markets. The operator placed a 30 mill order for the construction of 2,000 new ISO tank containers in 2003, for delivery over the 20042005 period. July 2004 15

WorldCargo news

TANK/CONTAINER INDUSTRY NEWS

Owens Group sheds box interests

New Zealands Mainfreight, new majority owner of the countrys Owens Group, has almost completed a comprehensive clean-out of what it deemed Owens noncore and loss-making activities, in the process shedding almost all container activities. Earlier this year, Sea Containers Australia purchased the Australian and NZ business of Owens Refrigerated Freight, the Australian container management and depot business of Quality Container Management, Owens shareholdings in Melbourne Container Park, 50 per cent of NZbased Independent Reefer Services, and the tank container cleaning and repair business Hyde Park Tank Container Holdings for a total of NZ$12.5 mill. In turn Owens Container Services purchased from Sea Containers British Isles Ltd the 26 per cent of the shares in Westfield Container Depot that Owens did not own. Following this, United Container Holdings bought Owens Container Services and Westfield Container Depot in New Zealand, as well as Owens shares in three joint venture companies, Suva Container Park, Tauranga Container Park and Transport Systems 2000, for NZ$6.3 mill. Ship agency Seatrans NZ, with representation in eight ports covering 400 calls per year, has been acquired by larger rival McKay Shipping, which will retain the business as a separate ientity. No price was disclosed. Sales of Owens Cooltainer and Australian agencies have yet to be reported. Owens is left with two international divisions and a domestic freight business, representing NZ$260 mill of the previous group revenue of NZ$400 mill. Mainfreight says these are businesses to which it can add value and which are complementary to its supply chain strategy. Australias Toll Holdings owns 12 per cent of Owens, widely viewed as pay back for NZ interests preventing Toll from taking full control of Tranz Rail (now Toll Rail).Toll managing director Paul Little said his company would like to have more input into decisions being made, but Mainfreight was not giving it the opportunity. The original intent was to try to participate in some of the synergies between Mainfreight, Owens and Tranz Rail, he told The New Zealand Herald.Those synergies are quite significant. The only way we felt we could participate was to take a stake in Owens. Mainfreight was not going to welcome us into the fold in any other way.

When Fairfield Chemical Carriers (FCC) was looking to acquire a number of second hand tank containers, it was no surprise that the company turned to Trifleet Leasing for its requirements as Trifleet, now owned by Ing Lease, was formerly a subsidiary of FCCs parent company Fairfield Maxwell. Trifleet was able to supply FCC at short notice with the necessary IMO 1 units for the storage of waste oil and other residuals on the decks of its new fleet of chemical tankers

Boxes from Vietnam

It may be a drop in the bucket when compared to the Chinese container manufacturing giants, butVietnam has taken its first steps on the road to becoming a box building nation. Best known as a depot operator, Hung Dao Container Co started building standard steel dry freight boxes at the beginning of June at a factory close to Hanoi and the port of Haiphong. Capable of building 20ft, 40ft and 40ft high cube boxes, the facility is currently producing 10 TEU/day, around half its installed production capacity of 6000 TEU/year. All raw materials are imported from Japan, Korea, China and Malaysia. Initial deliveries are reported to have been made to customers in Europe, the US, Australia and Dubai.The factory is also well positioned for deliveries to Chinas southern Guangxi Province as well as to the local Vietnamese market. Hung Dao plans to install a second imported production line next year with a capacity of 80 TEU/day (24,000 TEU/year). A second manufacturer, Vinashin Container, an offshoot of Vietnam Shipbuilding Industry, is reported to be planning to start construction of a container plant in the country in the fourth quarter of this year. No details on the latter have been released.

TK website revamped
Reefer machinery manufacturer Thermo King has redesigned its website and added an enhanced, easy-to-use navigation system designed to improve the overall customer experience. The new site provides a gateway to product information, parts and service offerings, Thermo King news, trade show events and industry links. Improvements to the site include product features, options, product specifications, region-specific product promotions and messages and content additions to the parts and accessories menu. Other additions to the site include an enhanced dealer locator mapping system, frequently asked questions (FAQs) and a unit timeline dating back to 1938. The new-look Thermo King website can be found at www.thermoking.com.

CIMC opens reefer specials plant

China International Marine Containers (CIMC) has formally opened its new reefer specials factory in north China. Built adjacent to CIMCs existing reefer plant in Qingdao, which it acquired from Hyundai at the end of 1998, the new plant has an annual capacity of 4000 units. Total investment in the facility is put at US$28.75 mill. Like CIMCs dry freight specials plant in Nantong, the reefer specials plant is aimed at the construction of non-standard units, including over-height, over-length and over-width designs, particularly for the US, European, Japanese and Australian markets. As this issue was going to press, CIMC was reported to be on the point of taking over established box builder Yangzhou Tongyun Container Co (TYC) and its reefer manufacturing arm Yang-zhou Tonglee Reefer Container Co (YTRC). It has been an open secret that TYC has been on the market for some time. China Shipping had been widely touted as a likely buyer, but CIMC would appear to have beaten it to the punch.

Enter Container-pro
Belgium-based Business Software Solutions has launched Container-pro, a new portfolio of management software products for container repair depots. Container-pro comprises a Pocket PC-based application for creating repair estimates and an iSeries-based application as the depot management system to manage repair-related tasks. According to Business Software Solutions, Container-pro allows repair estimates that are fully compatible with ISO 9897 norms to be created using a Pocket PC that supports digital imaging, allowing a picture of any damage to be included with the estimate. Multiple repair tasks can be selected from drop-down boxes and once the estimate is complete, it can be sent within seconds to the depot management system using Bluetooth or GPRS/GSM transmission media. Estimate costs are automatically assigned by the management system according to the chosen tariff plan for 16 the equipment owner concerned. Completed estimates, including digital images where appropriate, can then be sent to the equipment owner by email, fax or EDI, using EDIFACT or CEDEX rules, and repair authorisation can similarly be received by any agreed format. Once authorisation has been received, a work order is generated, and once complete, an einvoice can be sent to the equipment owner by EDI. Later this year, Business Software Solutions plans to launch a Container-pro Commerce Portal to allow the administration of the estimate and repair process to be carried out via the Internet. Equipment owners will be able to interact with the depot through a personalised web portal, which will allow them to maintain and query data across the range of functions found in Container-pro, for example viewing outstanding estimates, including damage images, and approving equipment repairs. July 2004

SHIPPING NEWS

WorldCargo news

Cobelfret orders jumbo ro-ros

Antwerp-based Cobelfret Ferries has placed an order for what will be the two largest freight-only ro-ros for North Sea operations and possibly the highest capacity shortsea freight ro-ro newbuildings in European waters. Destined for service between Rotterdam or Zeebrugge and Killingholme in the UK, the ships will have approximately 3900 lane-metres available over five decks, with double-stacked container potential of 848 TEU on four of these carried on roll trailers. The flexibility of the design is such that it will be possible to load 143 trailers plus 115 roll trailers, or cassettes each double-stacked with 45ft containers. Alternatively, it will also be possible to carry 656 cars on hanging car decks or 258 trailers or a combination of both. Delivery from Flensburger SchiffbauGesellschaft is scheduled for the fourth quarter of 2006 and second quarter 2007, so the company has plenty of time to decide which Continental port to serve. It is planning to consolidate some of its scattered operations in Zeebrugge at the Britanniadok later this year, but would like to establish a much larger dedicated facility at the port. Measuring 200m overall with a beam of 31m, the newbuildings, dubbed Humbermax, will be unable to transit the 198m x 26.2m Immingham lock. Rather, Cobelfret has taken advantage of lock-free access to its new 60 acre Humber Sea Ter minals (HST) facility at Killingholme, adjacent to Immingham (see WorldCargo News December 2003, p15). The vessels are not much smaller than the two P&O passenger ferries PRIDE OF ROTTERDAM and PRIDE OF HULL which, with an loa of 214m and beam of 32m, are billed as the worlds largest cruise ferries but have 3345 lane-metres for freight traffic/ passenger cars. The vessels will also be relatively fast for a short sea ro-ro with a service speed of 21.7 knots provided by two 12 cylin-

Cobelfrets new freight-only ro-ros will be the largest operating in the North Sea der medium speed diesel engines developing a total of 21,600 bhp. This will reduce voyage time by over 20 per cent, but the ships will still provide the same daily departure schedule as the current 150 trailer capacity vessels to allow more stevedoring time for the much larger newbuildings.

PIL webCSM complete

UK-based FWL Technologies Ltd (FWL) and Pacific International Lines Pte Ltd (PIL) of Singapore have completed the implementation of FWLs web-based Container Ship Management solution (webCSM), which provides the carrier with a comprehensive solution to a wide range of shipping functions and processes. Operating from a single Oracle database sitting on its central server, PIL and its feeder company ACL are rolling out webCSM to all their 130-plus owned and independent liner agency offices throughout North Asia, South East Asia, the India sub-continent, Middle East/Gulf, Africa and Australasia. The solution is also being used to serve the carriers recently introduced European trade lane. FWL developed solutions that answer PILs real-time needs in the areas of pricing, bookings, documentation and invoicing, as well as vessel operations, vessel scheduling and equipment control.The software is designed specifically to allow PIL to better serve its client base and numerous liner agency offices, including the carriers head office activities and those of ACL. This web-based approach is a new platform, which PIL can deploy to our agency network with ease and minimal investment. webCSM allows our agents to provide quality service to customers and timely information for PILs principal office to manage our operational efficiency, said William Tay, project director of webCSM System.

Biggest ship handed over

CSCL ASIA, the worlds largest ever container

ship has been named at Samsung Heavy Industries Geoje Shipyard and handed over to China Shipping and chartering company Seaspan, based in Vancouver. The container ship will serve as CSCLs flagship and is the first of several ships that will be put into service by Seaspan and China Shipping over the next few years, with even bigger ships to follow. CSCL ASIA, the first ship to have an 18-wide deck stow, can nominally carry 8500 TEU at 24.5 knots. Since the new fleet of ships will follow the same design they can be efficiently handled at a container terminal. Seaspan is well-known along Canadas Western coastline for its extensive fleet of tugboats and barge equipment, but nothing close to the scale of the 334m long CSCL ASIA. Graham Porter, the director of Seaspan Container Lines was keen to state how all parties benefited from the deal and that the proposed fleet of new ships makes a lot of sense for Seaspans customers, China Shipping and CP Ships. We spent a lot of time with Samsung engineers to get a hull form that we felt gave the best loadability and speed characteristics possible, said Porter.Our aim was to have ships that do 24.5 knots, which is substantially faster than the old 3000 TEU class of vessels would have done. July 2004 17

WorldCargo news

CARGO HANDLING
As far as prices are concerned there is some evidence of an increase. The first 12 cranes for Hanjins terminal at Pier T in Long Beach were reported to cost US$7 mill each, whereas the two units currently on delivery cost $7.4 mill. On the other hand, PSA reports that the contract for 12 cranes ordered from ZPMC for the Pasir Panjang expansion is worth S$120 mill - around US$70 mill at the time, or US$5.85 mill per crane. The cranes have a full machinery trolley and 60t SWL-63m outreach. It is understood that the price does not include spreaders or motorised festoons which are covered in separate contracts.

Container crane demand at all-time high

Of this years all-time record number of 249 ship-to-shore cranes, ZPMC accounts for 149, or 60 per cent. Its figure includes 60 for mainland China - 40 per cent of its output and 24 per cent of the global figure. As usual every effort has been made to avoid duplication, so we apologise for any errors. Sins of omission are most likely to have been committed against SPMP, which did not respond to the survey, and ZPMC, because it is so hard to keep up with its phenomenal output. As of last August ZPMCs reference list from 1993 to August 2005 totalled 521 cranes! No response was received from

WorldCargo News XIth annual ship-to-shore container crane surey has turned up new orders for 249 cranes
Doosan HI or Fantuzzi group. As previously reported, an order for four more Reggiane cranes from Maher Terminals is in abeyance for some reason,. It may come back on again but, generally speaking, Fantuzzi group is pulling back from the ship-to-shore container crane market (WorldCargo News, June 2004, p3). This a far cry from 3-4 years ago, when the group reached its zenith in this sector (World-Cargo News, July 2001, p32). Most recently Fantuzzi group has concentrated on clearing its order backlog. Noell cranes, for example, have recently been delivered to Cartagena, East Port Said and Istanbul; five Reggiane cranes have been delivered to Le Havre this year; and four Ansaldo Reggiane design cranes have just been shipped from the Pan United Marine fabrication site in Batam, Indonesia to the Port of Jurong. with steep increases in the price of steel over the last 12 months. Assistant general manager Sun Li said that the price had almost doubled and not all of the increase can be passed on to the customer. Chinese industry is having trouble securing steel supply and, considering ZPMC needs to complete a quay crane every 2.5 days this year, supply is vital to its schedule. Sun Li says ZPMC has not had difficulty fixing quantities forward, but price is not always guaranteed.

Steel price hike

Like everyone else ZPMC has had to cope

Long-term contracts
Another trend with commercial implications is Maersks move to long-term, multi-project contracts. As previously reported, both ZPMC and Impsa have inked a 3-year deal with Maersk group. The ZPMC deal could be for up to 30 cranes/year. ZPMC has reported that areas such as technology, prices, priority under given conditions and exchange risk aversion are regulated by the contract. The fluctuating price of raw materials increases the financial risk to ZPMC but, says Sun Li, this is what the customer wants and ZPMC has to be flexible. While ZPMC has built considerable economies of scale into its production, the diversity of requirements makes standardisation possible only to a point. The cranes for Pusan Newport are built on a 42m rail gauge to increase the number of OMG Venezia was acquired two years ago from Motherwell Bridge by a for mer owner/manager, Paolo Nicolussi.Euro Group, an ad hoc venture of OMG and Turin-based construction engineer ing company Pierani, has reportedly won an 10 mill contract from Naples port authority for two cranes, for installation on Molo Bausan (CoNaTeCo). The award was apparently contested in the tribunale by another bidder, but it seems that it is being allowed to stand, subject to Euro Group producing more documents.

Bearing failure
Port Everglades has recently encountered a problem with bearing failure on the boom support wheel bearings of one of its low profile, post-Panamax shuttle boom cranes built by Samsung HI. A report to the cranes owners, the Broward County Commission, states that during the course of a recent ship cargo operation it was determined through observation and subsequent inspection that a boom support wheel bearing on crane SP7 failed.This is the newest of the ports container cranes and was placed in service during the second half of 2001. The crane was taken out of service and inspections and analyses of other similarly situated wheel bearings were undertaken. It transpired that as many as eight additional boom wheel bearings on SP7 are on the verge of failing and must be replaced, says the report. These visual inspections, supported by metallurgical tests of the bearings and chemical analysis of the grease within the bearing housings taken to date indicate that one cause of the bearings failing could be due to lack of proper lubrication. Being investigated further is whether the lack of lubrication dates to the time of initial installation of the bearings by the crane manufacturer. Both Samsung and GFC Crane Consultants, Inc, the crane maintenance contractor, have been placed on notice of potential claims by Broward County related to these matters. The Countys insurance carrier, F M Global has been brought in and is currently conducting a full investigation. As the situation needed to be resolved quickly Broward County Commission declared an emergency under the Florida Procurement Code enabling it to appoint McKay International Engineers (MIE) to inspect the cranes late last month without going through a competitive tender process. Part of MIEs brief includes review of the outboard gantry drive open gearing as this is thought to be misaligned and wearing at an accelerated rate. 18 July 2004

CARGO HANDLING
Table 1: Ship-to-shore and barge-to-shore container gantry crane orders since July 2003 (Copyright WorldCargo News) TOTAL: 249 ship-to-shore gantry cranes and two barge-to-shore gantry cranes 1 Supplier 2 Location 3 Nos
(Options)

WorldCargo news
4 5 Mode of Year of shipment delivery 6 Capacity under spreader beam (mt) (mt) 50 40 82 40 30.5 36 40 30.5 63 63 63 65 40 55 55 40 40 40 40 65 LT 40 45 45 40 65 45 45 50 60 45 40 40.6 50.8 66 60 50 30.5 40.6 40 56.5 40 50.8 40.6 40 61 30.5 41 60 65 LT 40 LT 60 LT 60 LT 61 61 50 50 65 LT 50 LT 61 50 50 65 LT 61 65 LT 65 65 LT 65 LT 45 40.6 65 60.5 65 65 63 65 65 65 60 65 45 65 60 80 61 7 O/R (m) 8 Rail gauge (m) 9 B/R (m) 26.5 15.24 15 19 9 10.7 12 10 25 25 25 20 20 24 19 10 15 15 20 24.38 25 20 12 8 15.24 12 20 14.2 15.24 18 0 14 13.74 15 15.24 12 11 15 10 nd 10 Inside leg clearance (m) 17.5 16 18 16.8 16.75 16.5 16.5 16 17.1 17.1 17.1 18.3 17 17 17 17 17 17 15.8 18.3 16.5 16,5 16.5 17 18 16 16.76 16.74 16.76 16.76 15.24 18 18.46 14.8 14.8 15 16 18 17.15 nd 11 Overall width (m) 12 13 14 Portal Lift Hoist speed height height rated empty (m) above/below (m) (mpm) (mpm) 18.5/9.5 33.5/14 41/15 34/14 25/9 30/13 29/15 23/11 35/21 38/22 38/22 37/22 30/ 37/21.5 36/20 20/12 27/ 27/ 21 36.5/ 26/ 30/ 30/14 25/ 33.5/ 33/11.5 23/12 32/16 40/16 31/16 25/10 36.2/15 34.7/17 40/17 36/15 34/15 30/14 35.7/17.5 26/13 nd 30 60 90 60 50 50 55 50 90 90 90 75 45 80 70 40 50 50 40 75 60 60 60 60 60 70 50 60 60 75 30 70 70 90 60 53 50 70 50 90 60 130 180 130 120 120 110 120 180 180 180 150 90 180 180 100 120 120 80 150 120 120 120 120 130 150 120 150 130 150 75 150 150 180 140 130 120 160 120 180 15 Trolley speed (mpm) 150 180 240 180 150 150 150 150 240 240 240 240 140 220 180 135 150 150 140 180 180 150 150 180 200 185 180 200 185 210 120 240 210 240 210 180 150 180 180 240 16 Max hoist accel 17 Max trolley accel

(Partner)

03/05 Gottwald Hafen R-P, Wrth 1 BAR part-big 2 part-big 12 months Impsa PS UMSA Port of Santos UMSA APMT, Algeciras 3 erect 16 months Jikelele SAPO, Durban 3 part big 22 months IHI Kanazawa Port (J) 1 erect 03/05 Cilegon Da Nang (Viet) 1 erect 02/05 Cilegon Semarang (Indon) 1 erect 11/04 JFE Eng. Corp Port of Fukuyama 1 erect 02/05 Kalmar MSC Home, Antwerp 10 part-big (self-erect )11/04-08/05 HNN Antwerp - Deurg. 6 part-big (self-e) 11/05-01/06 HNN Antwerp - Noord. 2 part-big (self-e) 04/05 Antwerp Gateway 6 (3) part-big (self-e) 06/05-08/05 Interforest Rotterdam 1 part-big 09/04

63 30 10 19 60 48.77 16 18 100 62.5 22 30 65 45 16 20 31 11 16 50 38.1 13 23.47 36 13 16 40 31 11 16 56 20 30 56 20 30 56 20 30 75 55 20 30.48 60 38 14 15.24 57.5 21 35 51 19 18 30 15.24 35 18 35 18 24 7 55 61 22 27.43 36 13 15 38.5 13 20 37 13 18 40 13 18 42.9 16 42 16 35 13 43 16 48.5 18 42 16 29.5 10 50.5 18 50.5 18 62.5 22 55 20 48 18 37 13 47.1 18 36 13 63 22 45 16 18.29 15.4 48 30.48 15.24 18 21 30 30.5 24.38 16 23.5 16 30 30.1 30.5 29

27 27 28.8 28 30 27 27 27 27 27 27 32 23 31.2

14 18 14.28

14 14 14 14 16.5 15 17 17.5 13.54 13.5 13.5 18.7 15.9 14 14 14 14 13 13 15 14.5 14.78 12.5 12 14.35 14 14 12 13 14 14 16.5 nd

0.62 m/sec2 1m/sec2 0.5 m/sec2 0.56 m/sec2 0.33 m/sec2 0.37 m/sec2 0.45m/sec2 0.75m/sec2 0.75m/sec2 0.75m/sec2 0.417m/sec2 0.375m/sec2 0.8 m/sec2 1.2 m/sec2

0.45 m/sec2 0.8m/sec2 0.5 m/sec2 0.5 m/sec2 0.42 m/sec2 0.42 m/sec2 0.5m/sec2 1m/sec2 1m/sec2 1m/sec2 1m/sec2 0.375m/sec2 0.7 m/sec2 0.86 m/sec2

Kirow Leipzig group Kocks Krane HHLA Burchardkai 2 HHLA Tollerort 2 Kr. Eberswalde PSO Iran, Sadad 2 R-MFS SNP, Cat Lai (Viet) 3 R-MFS SNP, Cat Lai (Viet) 3 R-MFS Waalhaven Beh., Born 1 WID, BAR
KCI Konecranes GPA, Savannah Port of Kotka BCT, Gdynia Port of Koper McNally Bharat Eng KPT, Haldia Liebherr CC 2 1 (1) 1 (2) 1 2

part big erect part-big part-big part-big part-big erect erect erect
site erection

04/05, 06/05 08/05, 09/05

2005 12/04 08/05 2005

18 months

50 50 50 53 85 LT 50 60 50 50 75-88 40-50 52-60 65 67 55 45 57.2 67.5 82.7 78 86.5 47.7 55.5 56 nd 50-60 70 53 78 40

0.45m/sec2 0.8 m/sec 0.55 m/sec2 0.55 m/sec2 0.5 m/sec2 0.5 m/sec2
2

0.3m/sec2 0.7 0.6 0.5 0.5 0.5 m/sec2 m/sec2 m/sec2 m/sec2 m/sec2

upper part lowered

12 months 14 months 12 months 2Q/2005 2Q/2005 4Q/2004 2Q/2005 2Q/2005 2Q/2005 06/04 03/04 11/04 11/04 01/05 03/05 03/05 10/05 10/05 450 days 2004 08/04 04-6/05 03/05 07/05 04/04 07/04 08-09/04 08-11/04 08/04 08/04 08/04 09/04 09/04 10/04 10/04 10/04 10/04 11/04 11/04 11/04 11/04 12/04 12/04 2005-2007 01/05 01/05 02/05 02/05 02/05 04/05 04/05 04/05 05/05 06/05 06/05 08/05 09/05 09/05 10/05 05/05 07/05 08/05

27 26.2 27 27 27.5 27 27 26.55 25 27 29.1 25.5 26.5 27.78 27.9 26 25.6 25.6 28 28.6 nd

Kolkata Port Trust cranes from MBE are under license from Konecranes; basic design and component delivery only from Konecranes

Termont, Montreal 1 Castelln Terminal (Sp) 1 Port of Gvle 2 WID Port of Tauranga 1 TerCat, Barcelona 2 TCDD, Mersin 2 ABP Connect, Immingham 1 Mitsubishi HI TPTC, Tokyo 2 BPA, Busan 3 Evergreen, Kaohsiung 1 ICAVE, Vera Cruz (Mex) 2 PSA, Singapore 3 TPA, Tomakomi (J) 1 NTC, Yokkaichi 2 Chittagong PA, Bangladesh 4 Tobishima, Nagoya 3 OMG/Pierani Port of Naples 2

part-big part-big part-big part-big part-big part-big part-big erect erect erect erect erect erect erect erect erect erect erect erect in parts in parts erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect erect

1.5 secs 1.5 secs 1.5 secs 2 secs

5 secs 2.3 secs 5 secs 3 secs

0.58-1.72 m/sec2 0.5 m/sec2 0.58-.625 m/sec20.583 m/sec2 0.61-1.0 m/sec2 0.47 m/sec2 0.59 m/sec2 0.46 m/sec2 0.58-.75 m/sec2 0.6 m/sec2 0.56 m/sec2 0.5 m/sec2 0.67 m/sec2 0.5 m/sec2 not decided (nd) nd nd nd

Paceco licensees Hyundai Sambo HI HKT, Busan Mitsui E & S Naha PA,Okinawa Paceco Espaa Opcsa, Las Palmas TdS Mlaga
Sumitomo HI ZPMC

4 1 2 (1) 1 (1)

61 22 30.5 20 44 16 50.5 17 28 60 22 30.48

17 11 12 14 10

18.3 16.76 18.28 16

31 27 27 29.5

16.5 16 16.83

40/ 34.5/ 36/16 40/16 20/11 36/15 38/17 36.6/18.3 30/15 41/18 41/18 36/18 36/ 38/13.5 34/16 36.6/18.5 40/17 40/15 40/18 40/18 36/15.24 39/15 40/18 41/18 40/16.7 38/18 27.5/15 35.5/16 41/18 34/15 40/15 45/18 40/23 43/ 38/17 41/18 38/18.3 36/13 33/17 43/18 41/16.5 41/19.5 40/18

90 70 60 90 50 60 70 90 50 90 90 60 60 60 60 75 90 90 70 70 53 75 90 90 60 70 60 75 90 70 90 90 80 100 90 90 90 75 70 90 75 90 90

180 150 130 180 120 135 150 180 120 180 180 150 150 130 130 180 180 180 170 170 170 180 220 180 170 170 150 150 180 150 180 180 180 180 180 180 150 140 180 150 180 180

200 210 180 215 150 180 240 300 180 240 240 240 180 180 180 244 244 240 210 210 240 240 240 244 240 240 180 210 244 240 240 240 240 240 240 244 240 210 200 240 210 250 240

1.5 secs
0.5 m/sec2

5 secs
0.6 m/sec2

Kashima, Ibaraki 1 PICT, Karachi 2 Guangzhou Nansha Port 4 SSA Marine, Long Beach 5 VPA, H. Roads, Ports. 3 Shekou CT 1 Shekou CT 1 Lianyungang New Oriental 2 Port of Xiamen 2 LCB CT No. 1 Ltd, Thailand 1 Port of Rizhao 2 Port of Long Beach (TTI) 2 Island Equipment LLC, US 5 Shanghai Port Con. Co 1 Hanjin Shipping Kaohsiung 1 Hanjin Shpping Busan 2 PA Jamaica, Kingston 4 Shanghai Waigaoqiao 8 Tianjin Port Authority 6 Mawan Port Authority 4 PNC, Busan 18 TSI Deltaport, Vanc., BC 3 Ghana PHA 3 P&O Ports Australia 2 Shekou CT phase III 4 Xinsha CT, Guangzhou 2 Dalian PCT Ltd 4 Chiwan CT Ltd 4 SETO (TN-MSC), Le Havre 2 Eurogate, Hamburg 5 PSA Corp, Singapore 12 Shenzen Mawan Terminal 4 P&O Ports Canada, Vanc. 2 TRP, Buenos Aires 1 Kenya PA, Mombasa 2 Shanghai Yangshan Deep. 13 DPA, Jebel Ali 4 (8) DPA, Jebel Ali 6 (2) SCCT, East Port Said 2

16 29 8 46 36 60 22 30 61.5 22 30.48 48 15.24 58 30 65 30 50 30 55 26 48 25 55 30 61.5 22 30.48 63 22 30.48 60 30 61 30.5 61 30.5 60 30.48 65 30 66 30 65 30 75 LT 65 22 42.67 50 18 30.48 35 15 45 25.3 30 65 22 50 26 56 35 70 24.384 61 35 62 22 30.48 67 22 30.48 65 30 60.3 24.384 45 18.5 45 27.45 65 22 30 68.2 25 30.48 68.2 25 30.48 62.5 22 30.48

20

18.3

27

15.24

2 secs

3.5 secs

NOTES: Column 3: BAR - barge-to-shore crane with fixed boom; usually widespan to stack between legs and with fast long travel speed. RM-FS Rail-mounted FeederServer design. WID - widespan ship-to-shore gantry crane Column 7 (Outreach). Numbers in red italics after outreach indicate the number of deck rows across the ship which the the crane(s) can access - see also Table 3 on page 20

July 2004

19

WorldCargo news
(Copyright WorldCargo News) NOTES: Drive type (Column 3). A - full rope drive. B - semi-rope drive. C - full machinery trolley
Table 3: Features of new orders Crane Supplier Client/ location Drive type C Boom type lattice, fixed double girder double girder double girder double girder monogirder monogirder monogirder double girder double girder double girder double girder monogirder monogirder monogirder double girder monogirder monogirder monogirder monogirder monogirder monogirder lattice boom lattice/mono lattice/mono lattice/mono lattice/mono lattice/mono lattice/mono lattice/mono gooseneck double girder gooseneck monogirder monogirder monogirder monogirder monogirder double girder double girder double girder double girder Skew/Trim/List no/no/no yes/yes/yes 3/5/5 3/3/5 3/5/5 3/3/3 3/5/5 5/5/5 3/3/3 yes/yes/yes yes/yes/yes yes/yes/yes no/yes/yes yes/yes/yes no/yes/no yes/yes/yes yes/yes/yes yes/yes/no yes/yes/yes no/yes/yes no/yes/yes no/no/no no/no/no 3/3/3 no/3/3 no/no/no 5/7/3 3/5/5 5/5/5 5/5/5 3/5/5 5/3/5 5/3/5 3/3/5 6/6/6 3/5/5 5/5/5 3/3/5 3.5/3.5/no 3.5/no/no none Anti-Sway mechanical electronic electronic electronic electronic electronic none electronic electronic electronic electronic none electronic electronic electronic electronic electronic not decided electronic electronic mechanical none mechanical mechanical mechanical mechanical mechanical mechanical mechanical mech/electronic mech/electronic mech/electronic mech/electronic mech/electronic mech/electronic mech/electronic mech/electronic none electronic electronic
Snag/Catenary Spreader

CARGO HANDLING
Main electrical and control features Special features

protection no/no

features

Gottwald H. Rheinland-Pfalz Hyundai IHI

truck lanes between the legs. The dock at Changxing Island was built with a variety of rail gauges in mind but a newly- delivered vessel is being converted to deliver the cranes. Such a vessel, of course, can still be used for other deliveries and it may prove the case that wider gauge cranes become more common if twin 40ft handling becomes more popular.

HKT, Busan A Da Nang A Semarang A Kanazawa A Impsa Port of Santos B APMT Algeciras A SAPO Durban B JFE Eng Fukuyama A Kalmar MSC Home Antwerp A HNN Antwerp A POP/Antwerp Gateway A Interforest B Kocks Kran. CTB Hamburg C TCT Hamburg Kone. GPA Savannah Kotka BCT Gdynia Koper K. Ebers. SNP Vietnam (2004) SNP Vietnam (2005) PSO Iran BT Born Termont Castelln Gvle Tauranga Tercat TCDD ABP Connect Mitsubishi TPTC, Tokyo Busan PA Evergreen, Kaohsiung ICAVE, Vera Cruz PSA, Singapore Tomakomai and Yokkaichi Tobishima Chittagong PA Mitsui Naha Paceco Esp.Opcsa L/Palmas TdS Mlaga Sumitomo HI Kashima Liebherr C B B B B A A B C B B C B B B B A A A A A A A A A A A A

thyristor all ac rotating trolley energy chain Seoho Siemens all ac thyristor no/no 20-40-45 single Yaskawa all ac inverter no/no 20-40 single Siemens dc thyristor Leonard inc. gantry no/no 20-40 single Yaskawa all ac inverter yes/no Bromma SSX40 Impsa/Siemens full ac IGBT motorised festoon yes/cont.Bromma tandem 40 Impsa/ABB full ac IGBT yes/no Bromma SSX40 ImpsaSiemens full ac IGBT no/no JFE Eng 20-40-45 Fuji Electronic all ac inverter Siemens/SE 70 all ac energy chain yes/yes Bromma separating twin yes/yes undecided Siemens/SE 70 all ac energy chain yes/yes undecided Siemens/SE 70 all ac energy chain no/no Elme 20-40 Siemens/SE 70 all ac yes/no long twin Siemens dc (ac long travel) Double hoist
yes/yes Bromma sep. twin 20
Main trolley: mot. festoon Dock hoist: energy chain

Smits twin 20

Kalmar takes over

Fantuzzi groups former position as the biggest European supplier is currently occupied by Kalmar, which has shot to the top by bagging all the new orders from Antwerp operators - a minimum of 24 superpost-Panamax (20-wide) cranes. The ability to mass produce cranes to such tight deadlines has come about because of Kalmars strategic agreement with Hollandia Kloos and its much greater financing capabilities compared to the former Nelcon. Both points are well-illustrated by the single crane deal for Interforest (ITR) in Rotterdam. The contract was signed in January but the crane should be ready on the quay in September, just eight months later; and Kalmar obtained the finance on behalf of ITR and is covering it with a five year maintenance contract. Despite the explosion in orders, there is capacity to accept more. Kalmar is bidding selectively but of course its hit rate is not known. The last two of a total of six machinery trolley, 17-wide cranes to date for Eurogate Hamburg were delivered last month but this operator has placed its latest order for five rope trolley, 22-wide cranes with ZPMC. Also just delivered is one 15wide crane ordered by P&O Ports for its Delwaidedok operation in Antwerp (ex-Seaports) which has a semi-rope drive (motorised trolley and machinery house hoist drums).This crane is fitted with a Stinis long twin spreader.

no/no long twin yes mech./yes yes elec./no Bromma 45ft yes elec./no Bromma 40ft
yes elec./no Crancont twin 20

no/no no/no yes/no no/no

Bromma Smits Bromma Stinis

Alstom all ac GE all dc inc long travel Konecranes all ac Konecranes all ac Konecranes all ac Siemens S7 all ac Siemens S7 all ac Siemens S7-300 all ac Siemens S7-400 all ac Liebherr full dc thyristor Liebherr full dc thyristor Liebherr full dc thyristor Liebherr full dc thyristor Liebherr full dc thyristor Liebherr full dc thyristor Liebherr full ac thyristor MHI/Fuji VVVF ac MHI/Toshiba VVVF ac ABB VVVF ac GE VVVF ac Yaskawa VVVF ac Yaskawa VVVF ac not decided, VVVF ac not decided VVVF ac Fuji ac inverter Siemens all ac Siemens all ac

motorised festoon

mot. festoon; diesel back-up

motorised festoon

yes/no Bromma sep. twin 20

yes/no Bromma 20-40 yes/no not yet known yes/yes Ram Twin 20 yes/yes Bromma twin 20 yes/no Bromma 20-40-45 yes/no Bromma 20-40 no/no Mitsubishi single no/no Ram twin 20 yes/no Ram twin 20 yes/no Bromma twin 20 no/no Ram twin 20 no/no Mitsubishi single no/no Mitsubishi single no/no Ram single
Mitsui Paceco twin 20

no/yes 20-40-45 single yes/no Bromma EH195 no/yes Sumitomo 20-40

ZPMC PICT, Liang,. Hanjin, Kenya Yangshan, DPA, SCCT Guangzhou, Shanghai PCT, Waig., Tianjin, Mawan, Shekou, Xinsha SSA Long Beach , Port of Long Beach PAJ KIngston, POP Canada VPA Portsmouth Eurogate, Hamburg Shekou, Xiamen, LCM Laem., Rizhao Island Equip., TSI, SETO

Siemens all ac (40 cranes) Yaskawa ac (53 cranes) GE dc (7 cranes) GE ac (6 cranes) Fuji ac (3 cranes) Alstom ac (5 cranes) ABB ac (17 cranes) dual trolley (SETO)

7 + 1 RTGs from PTP Tanjung Pelepas in Malaysia.These will be fitted with full ac thyristor drive controls from Impsa PS based on Siemens components and the spreaders are coming from Bromma (type YSX40). Impsa PS has an order for five similar RTGs in the Port of Santos, again with Impsa/Siemens ac drive controls and the BrommaYSX40 (separating centre yard crane spreader).

MES, which owns Paceco Corp and PE, reports that it has mainly been concentrating on fabricating industrial cranes in the past year. Most of these deliveries have now been completed, and it is starting to bid for ship-to-shore crane tenders again. MES has improved its standTable 3: Crane outreach by rows across deck from Table 1 totals Size range < Panamax Panamax 14-17 wide 18-21 wide 22-wide Total No 9 22 29 56 133 249 % 4 9 12 22 53 100

Spreading out
As well as picking up crane business outside Malaysia, Impsa is also expanding its RTG supply portfolio. As previously reported (WorldCargo News, May 2004, p3), Impsa Malaysia has an order for 10 (plus five optionally), 1 over 5/

Recent deliveries
Paceco licensees are not especially active in the quayside gantry crane field at this time, although Mitsui (MES), Hyundai (now Hyundai Sambo) and Paceco Espaa (PE) have all recently completed some important deliveries.

Sources: Suppliers data and WorldCargo News estimates, (See also small is beautiful? p23)

ard Portainer designs, to provide more structural rigidity for faster handling whilst lowering overall weight. Two years ago MES introduced a new monogirder boom Portainer design with a full machinery trolley. This has been refined by moving the TLS machinery to the girder end for easier maintenance. In addition, a direct drive gantry system has been introduced, with hollow-shaft geared motors. These changes are said to have reduced the crane wind force profile and painted surface area by 17 per cent and 15 per cent respectively, while less hydraulics are required. MES has also introduced a new standard trolley design for

Paceco Transtainers. The motors are directly coupled to the trolley wheels and rectangular gear boxes are used for the hoist drive.These changes, says Paceco, simplify the trolley components and provide more space and easier access for service and maintenance.

The new standard designs are available to all Paceco licensees. As previously reported, the newest of these is Paolo de Nicola SpA (PdN) in Italy, which can also bid for projects outside Italy on a caseby-case basis. There is also a possibility of PdN and PE co-oper-

Crane raise project

UK-based Seward Wyon Ltd has provided some information on the crane height raise contract it was awarded earlier this year by Southampton Container Terminals Ltd (SCT). As previously reported ( WorldCargo News , May 2004, p43), five Morris gantry cranes on the 204-5 container berths are being raised in turn by 5m to provide a clear height above rail under spreader of 36m, to cater for higher deck stows. Seward Wyon eng ineers Andrew Wyon and Dr Paul Heyes designed a 1000 tonne capacity modular system capable of jacking up to 5.5m. The system is made up of eight 185 tonne Strand Jacks controlled by a central computer which constantly monitors the load and extension, ensuring total control throughout the lifting cycle. The entire jacking system has been developed to withstand wind speeds of 80 mph throughout the operation. The contract included initial engineering studies and works to ensure the stability of the crane structure and cope with the added flexibility due to the height increase, complete management of the project, in-house design of the jacking system, engineering and fabrication of the 5m box-leg extensions and all associated bracing, ladders and platforms. This modular jacking system is easily disassembled, says Seward Wyon, and can be transported in 40ft containers to further locations throughout the world. At the time of writing (late July), Seward Wyon has completed two of the five cranes and is working within a 4-week outage programme for each crane. It is on schedule to complete the entire project by the autumn.

20

July 2004

CARGO HANDLING

WorldCargo news
where DCW delivered Panamax cranes to customers in Xiamen and Wuhu in 2002 and to Weihai Port Authority last year. DHI-DCW is currently working on optimising a 65 tonne SWL design with a 35m rail gauge and 65m outreach. While the company builds its container crane business the Quanshui manufacturing base is busy with bulk material handling equipment including gantry grab unloaders for Shenzhen West Power Co Ltd and terminals at the Changshu and Zhan Jiang Port Authority. A 5000 t/ h ship loader is also under construction for Qinhuangdao Port. DHI-DCW says that is ready to respond to more international tenders and the first step to securing more business is increasing awareness of the new company and its production capabilities.

New contender for the Chinese crown

In 2001 Dalian Heavy Industries (DHI) and Dalian Crane Works (DCW) merged to form the DHIDCW Group Co, Ltd. Prior to the merger DHI was well-known in the metallurgical, material handling, energy and chemical industries, whereas DCW was a well-established crane manufacturer. The new company has spent RMB1.5 bill on restructuring and reorganisation, one third of which was invested in building and equipping four new manufacturing bases around Dalian and a new head office at Fujiazhuang in downtown Dalian. The size of the work force has been reduced from 24,000 to 4250 personnel. Port and stockyard equipment will be fabricated and assembled at the new Quanshui manufacturing base where DHI-DCW has built three specialised sub factories and two open assembly areas which are 150,000 m2 and 100,000 m2 in size.A 260 ton portal crane with a slewing radius of 65m and lifting height of 91m is under construction, for lifting large steel sections in the assembly area. then) Vulkan Kocks, IHI, Samsung and TCM. DHI-DCW wants to do its own design work and tender for business as the main contractor, but it will also try to continue with these relationships on a case-by-case basis. DHI-DCWs standard container crane design is a double box girder crane with a rope-towed trolley, although a monogirder design is also available. The companys most recent container crane references are in the domestic market The new Quanshui manufacturing base where DCI-DHW aims to assemble 20 to 40 container cranes a year

Load them out

The Quanshui facility has two 250m long, 5000 dwt wharves for loading out heavy machinery directly onto vessels. Steel sections are fabricated in sub-factory two, which is equipped with EHJ automatic welding systems and a 160 ton EOT crane. Other key components such as electrical control equipment, gear reducers and hydraulic equipment are manufactured at another base in the Zhongge Factory Zone, in Dalians Ganjingzi district. With a restructured management and new facilities DHI-DCW is looking to establish itself as a strong player in the shipto-shore container crane market. Assistant general manager Michael Qu has set a target of achieving a 10 to 20 per cent market share within the next two years, equivalent to 20-40 cranes a year. DHIDCW wants a significant percentage of its volume to come from export orders. DHI-DCW claims to be Chinas only qualified overall contractor for industrial projects in the metallurgical, mining, power, materials handling and construction industries. This means that the company is able to supply complete systems for, say a new metallurgical plant and is not limited to single aspects of a project such as unloading or stockyard equipment. Qu acknowledges that the container crane market is highly competitive but argues that having a sales base in a wide spectrum of industry puts DHI-DCW in a strong position to compete for port-related business.

Design and build

In the past DCW has designed and fabricated its own container cranes but both DCW and DHI were also known as contractors for fabrication work in the bulk and container industries for OEMs such as Mannesmann,Voest Alpine, Krupp, (the ating on certain projects. PE is essentially a design and engineering company with long-standing subcontractors for fabrication and erection, whereas PdN is a noted heavy cranes manufacturer. Hence any arrangements could stimulate more competitive pricing on PEs behalf. PdN says that it will take a cautious approach to new container gantry crane tenders, particularly as there is a good level of demand for its jib crane designs. Its natural entry point for Paceco designs is Transtainers, as it is internationally prominent as a boat hoist designer and manufacturer. Traditionally MESs main Japanese rival in the ship-to-shore container crane field, Mitsubishi has reported orders for 21 cranes - its highest level of activity since 1996 and 1997 (30 and 27 cranes) when it was heavily involved with PSA in Singapore. Of the new orders reported, only eight (38 per cent) are for the domestic market. Perhaps the most significant export is the three cranes for Busan. All Mitsubishis new orders will be fitted with variable frequency (VVVF) ac drives. July 2004 21

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CARGO HANDLING

The weight of the evidence

A crane is a long-term investment and terminal operators want the comfort of future proofing. Cranes of up to 65 tonne SWL, 22-wide outreach and 40m lift height above rail have become almost standard for terminals that want to be able to handle the largest ships in the future. A more recent trend is towards higher capacity cranes that offer the potential to handle two laden 40fts, or even four laden 20fts, at once - so called tandem or twin
Source: Feroze Vazifdar, Liftech Consultants, Inc (Oakland, Ca) and Jeff Florin, Virginia Port Authority (TOC Asia, Singapore, February 2004)

Terminal operators looking to keep on top of leading edge productivity trends are considering higher capacity cranes, but have they got their number crunching right?
Table 1: Evolution of container crane weights and wheel loads Mid-1980s post-Panamax Total crane weight 910 tonnes Operating wheel loads (tonnes/wheel) Landside 45 Waterside 47 Stored wheel loads (tonnes/wheel Landside 54 Waterside 45 VIT Malaccamax (70.5m o/r) 1590 tonnes 73 95 120 124

40 lifting. As previously reported, tandem lifting was initially tested by Maersk at Algeciras with a purpose-built, Bromma double fixed 40ft spreader design, but the first purpose-built, twin 40 cranes were ordered for Jebel Ali by Dubai Ports Authority (DPA) from ZPMC last year. Since then a twin 40 unit has been ordered from ZPMC for one of the ter-

Above: twin headblock and spreader arrangement under test at Changxing Island. Below: general rope reeving arrangement of ZPMCs twin 40 crane design

minals at Waigaoqiao and, more recently, APM Terminals has ordered three cranes from Impsa Port Systems with 82 tonnes SWL under the spreader for Algeciras. Kalmar is supplying six cranes for Antwerp Gateway that will be capable of a 70 tonne maximum SWL in tandem mode. In April this year DPA signed another major contract with ZPMC including 10 cranes and an option for a further 10 more. Six of the first ten and two of the second (if ordered) will have tandem capacity. ZPMC comments that there is a great deal of interest in twin 40 cranes and it is in discussions with a number of clients who are preparing to buy.

Thinking ahead
As part of its plan to implement twin 40 handling, the DPA is working with Oakland, California-based consultants Jordan Woodman Dobson (JWD) to develop a master plan for Jebel Ali based on twin 40 operations. Although it has been suggested that twin 40 handling requires a major rethinking of yard systems, JWD spokesman Mark Sisson explains that at this stage double width trailers are not being considered. Current thinking is that two tractor/trailer sets will be positioned under the spreader. One area where a change may be required is in the width of the quay. Tandem lifting will increase traffic in the tunnel between the legs or in the backreach and a wider crane gauge than todays 100ft (30m) standard would be beneficial.The Port of Tanjung Pelepas (PTP) has considered this when designing the quay for its second phase. The current gauge of 30.5m has been retained to allow the cranes at Phase I with articulated bogies to operate over Phase II. However, the quay structure was designed to accommodate a second landside rail at 45m, clearly with wider gauge cranes for tandem lifting in mind. In addition, as previously reported in WorldCargo News (January 2004, p1), the new ZPMC cranes for Pusan New Port will have a 42m rail gauge. Although the yard supporting a twin 40 quay will have to cope with a higher flow of containers, Sisson sees considerable potential in the twin 40 concept. Properly implemented, he believes, a 50 per cent increase in yard productivity is not unobtainable.

Malaccamaxes
Increasing the SWL to 80t or 120t may push the price of a crane up by 50 per cent, but the real cost could be in the quay if weight and wheel loads increase substantially. Crane weight and wheel loads have increased significantly in the last 20 years as post-panamax cranes have increased in size, so this is not really a new issue for many terminals. In a recent paper, Feroze Vazifdar of Liftech Consultants Inc (LCI) and Jeff Florin ofVirginia International Terminals (VIT) compared the overall mass and wheel loads of the first post-Panamax
Table 2: ZPMC twin 40 cranes

Total crane weight - 1700 tonnes Operating wheel load (tonnes/wheel) Landside - 60 Waterside - 75 Stored wheel load (tonnes/wheel) Landside - 85 Waterside - 75

(Source: ZPMC)

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July 2004

CARGO HANDLING
cranes produced in the mid 1980s with the eight Malaccamax cranes ordered by VIT from ZPMC in 2002 (Table 1). So far four of these monsters have been delivered. The biggest cranes yet built, they have an SWL of 50 long tons at 70.5m outreach (25-wide) and 65 LT at 63.5m (22-wide). Lift height is 40m and rail span is 30.48m. Inside leg clearance is 18.5m and out-to-out width is 27m. The full specs and the elevating girder can be found in the July 2002 edition of WorldCargo News (pp19-22). As we write, VITs technical director Tony Simkus states that it has four more ZPMC cranes on the water - two Malaccamaxes and, for Portsmouth, two 48m outreach cranes with a truss (lattice) boom to save on rail loading. The third cranes for Portsmouth and the final two Malaccamaxes, including the elevating girder unit, are expected in November. (Hong Kong) Ltd, the design engineers for terminals 8 and 9 at Kwai Chung, have calculated that a typical crane with a lifting capacity of 65t and a 62-65m outreach weighing up to 2000t has a maximum vertical download per wheel of 175t on the seaside and 145t on the landside rail in typhoon conditions. This compares with 100t (seaside) and 75t (landside) operating wheel loads. higher load, but structural rigidity requirements are similar. From the point of view of minimising weight and operating wheel loads, Paceco Corps chief engineer Sun Huang says the best combination is a monobox boom and a rope-towed trolley with the main hoist drive system mounted inside the machinery house. The crane structure material must be used with a high tensile stress and a low alloy structure steel. Kalmars sales manager for ship-to-shore cranes, Kees Derks, comments that, as well as a ropetowed trolley, if customers can accept a larger out-to-out crane width (>27m), this reduces the load per running metre.

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Keeping up
The pressure to have 22-wide cranes to present to shipping lines as ready for the next generation of vessels has meant that many terminals have had to make operational compromises on new cranes that are not always readily apparent in order to keep wheel loads within quay limits. Several crane builders report that restricted twin lift, where the maximum lifting capacity is not available over the full outreach, is a relatively common way to reduce wheel loads. For a number of years it has been common practice to restrict a cranes heavy lift capability under hook or lifting beam to, say, half of the outreach.

Light-headed
A light option may not be the best, however, when overall performance is considered. Huang says that Pacecos experience with a catenary trolley to tow the main trolley and eliminate one set of rope tensioners was that customers complained about performance when ropes stretched. Paceco considers the best options are a monobox boom with a self-propelled trolley or a twin-girder design and rope-towed trolley. For its new standard Paceco Portainer crane, Mitsui Engineering & Shipbuilding (MES) has chosen a monogirder, self-propelled trolley design. Huang says the improved response of the crane outweighs any concerns about wheel slippage, which is easily overcome by running the trolley over the rails once to clear morning dew. Since its introduction two years ago MES has made further modifications to the design.The TLS mechanism has been moved to the landside girder end for easier maintenance and a direct drive gantry system with hollow-shaft geared motors has been adopted. Liebherr Container Cranes is sticking to its long-held view that a lattice construction for the boom and main beam is the best way to reduce wind area, and thus lower wheel loads, while retaining structural strength and hence rigidity. Liebher rs director Pat OLeary states that strength and rigidity are most important on larger cranes and the level achieved can vary from manufacturer to manufacturer as can the perception. Kalmar currently recommends a double box girder boom with its delta forestay boom support design, but whether something else is more appropriate for a higher capacity crane is now under consideration.

Higher wheel loads

To provide for larger, higher capacity cranes, many ports now specify higher wheel loads when building new docks. In Hong Kong, for example, maximum pile size was increased from 1000 x 16.00 at Kwai Chung T8 to 1000 x 19.00 at T9, allowing a maximum pile load to increase from 4800 kN to 5200 kN per pile. PTP Tanjung Pelepas has full machinery trolley cranes with a 22-wide outreach and 60 tonne SWL weighing around 1800 tonnes at Phase I. It has increased allowable dock loads by 25 per cent for Phase II. The new quay can support 100 tonnes per metre of rail. Paceco Corp reports that the ports of Los Angeles and Long Beach have increased new dock capability to withstand 70 kips/ft (104 t/m) wheel load for a 22wide rope-towed trolley crane and 108 kips/ft (161 t/m) for a 22wide machinery trolley crane, including load factor in both cases.

Alter parameters
Other weight-reducing techniques include reducing the crane group and service life ratings under FEM1001 for the last 10 or so metres of the boom; and designing to maximum lifting capacity as an intermittent rating. For example, a cranes maximum SWL may be 65t and the crane will obviously be designed to have adequate structural strength and stability to lift a 65t load. But structural life, durability and thermal ratings are often based on a lower capacity to reduce cost and keep the crane weight down. Crane weight and wheel loads, of course, are heavily influenced by the construction of the crane and there are a wide range of opinions on what is the best design of crane to achieve the optimum balance of weight, wheel loads and performance.

In the range
According to ZPMC the wheel loads of the Dubai cranes are as set out in Table 2. This is within the range that some terminals which have built new quays for 60-65t cranes have allowed for,. However, many terminals face considerably higher wheel loads due to storm conditions. For example, Scott Wilson

Consider options
Most manufacturers do not consider that there is or should be any difference in the design concepts for the crane structure of a twin 40 crane. The boom and main beam have to be heavier to cope with the extra stresses from a

Small is beautiful?
Many ports that buy big, postPanamax cranes will never be called at by big ships within the life of the cranes and they are not only wasting their money but doing their shipping line customers a disservice. So argued Richard Clarke, director of ports and harbours for Halcrow at TOC Europe in Barcelona last month. Typically, said Clarke, not much consideration is given to the equipment specification when new terminals are being planned, even though they are usually the second biggest cost item (after civils). As of January this year, he said, of the > 235 cranes in build, 143 were 18-wide, 68 were in the 14- to 17-wide range and only 27 were Panamax. Yet just six per cent of the world container-ship fleet in terms of ship numbers is over-Panamax and, of the newbuild order book, only 23 per cent is in the > 4000 TEU range. If the capital cost of a small crane designed to work feederships (21m beam) is taken as unity (1), it is 1.5 for a Panamax and 2 for a superpost-Panamax crane, said Clarke. For the associated rails and power cost and quay cost the July 2004 ratii are 1:1.7:3 and 1:3:4.3 respectively. For running costs, the ratii given by Clarke are 1:1.4:1.9 for power consumption; 1:1:3 for maintenance; and 1:1.2:1.4 for dr iver factors (extra fatigue, shorter shifts, extra damage risk). Big cranes are inefficient on small ships, due to the parallax effect and sway problems.Taking the same three crane types again, the crane driver is 15m, 25m and up to 40m above ground. As the pendulum period = 2 x length/ gravity (k), the sway period is respectively 3 secs, 5 secs and 8 secs. The difficulty of slotting a container in the cell guides increases roughly square to the increase in distance. Sway can be taken out by 2-blocking but the load path is longer than a parabola. Clarke used some typical barge handling data from ECT in Rotterdam. A feedership-sized crane, with a cab fixed on the front, makes 30 lifts/hour, a Panamax crane makes 22 moves/hour and a superpost-Panamax crane just 15 moves/hour. The cost ratio per container (un)loaded is 1:2.1:3. But whatever Clarke says, not many people seem to be listening (see Table 3 on p20).

Machinery trolley
KCI Konecranes considers that a double box girder with full machinery trolley is the optimum system for a crane, even up to 120t SWL, as it provides the best rigidity with optimised weight. For older docks with wheel load limitations, Konecranes can provide a semi-rope trolley solution (self-propelled trolley, machinery house hoist). This, says Hannu Oja, Konecranes chief engineer for container handling, provides the best combination for this purpose - a light trolley but prompt positioning. A semi-rope solution is often recommended by Liebherr for large cranes, as it does not impose much more weight than a full rope drive trolley (around 26t instead of 18t). Liebherr and Kalmar concur that a full machinery trolley solution, which involves the lowest rope, pulley and sheave costs and associated assemblies such as catenary supports, is becoming too heavy for todays giant cranes. The trolley is in the 65-70t range - perhaps more given an 8085t SWL requirement - and the 23

WorldCargo news
boom has to be sized accordingly, so overall crane mass and wheel loads rise disproportionately. Generally, Liebherr recommends full machinery trollies for widespan cranes which typically are not required to have a large waterside outreach in any case (eg Teesport, Gvle). The cranes are also required for stacking between legs, so very accurate positioning is required between the legs. As noted, Kalmars preference on large cranes is full rope drive, as this is the lightest solution and allows the fastest acceleration without the problem of wheel slip, although Liebherr says wheel slip problems with motorised trollies are a thing of the past. It cites a case in Canada where the temperature dropped to - 40 degC and even - 48 degC when wind chill was added, but the ice on the trolley runway posed no problem. Kalmars latest cranes are described as having a trolley acceleration of 1 m/sec2, which in theory translates into top speed of 240 m/min within 2.25 secs. ery trolley on wheel loads is as severe as commonly thought. In his opinion, for very big cranes, as net load increases the weight of the trolley actually becomes less important. This is because with a 22-row outreach the storm condition often defines maximum wheel load requirement. Taking a full machinery trolley, 60t capacity, 22-wide crane Oja says that a Konecranes full machinery trolley design with eight wheels per corner has an operating wheel load of 60-80t per wheel and a storm wind condition load in the region of 90100t per wheel. Oja argues that increasing the crane capacity to 120t may increase operative wheel loads about 20-30 per cent, but they may still be the same range in stowed condition as for a 60t crane. As far as storm condition loads are concerned, the extra lifting capacity will not make that much difference as the wind surface has not increased markedly. Interestingly, when ZPMC president Guan Tongxian introduced the twin 40 crane to a group of terminal operators and engineers in Los Angeles in Janucrane is too limber and the driver can be injured if the cab sways too much at the end of the boom, particularly in e-stop conditions. Most operators try to counter this by specifying frequency (Hz) and deflection values (mm). For example, the Pusan Newport cranes specify maximum 100m horizontal deflection for the boom in the trolley travel direction and 400mm in the gantry direction under e-stop conditions. Natural frequency is specified as 08.Hz minimum in any direction. OLeary cautions against light weight cranes and recommends that operators also consider the amplitude of landward/seaward sway. This, says OLeary, is rarely specified but is very relevant when positioning and in particular for driver comfort. This value should be minimised and ideally is less than 150mm at main beam level, but cranes have been delivered [by unnamed parties] which have values in meters for this parameter. In addition to highlighting landward/seaward sway amplitude limits, OLeary encourages clients to take a hands on approach and carry out reference visits to allow crane drivers to try similar cranes and provide feedback.

CARGO HANDLING

Semi-rope trolley Liebherr cranes at Terminal de Catalunya, Barcelona ary this year, he said that any modern quay built to support the wheel loads of a 60 tonne 22-row outreach crane could handle the wheel loads of a twin 40 crane. There was some confusion at the time as to how this could be so. MES offers another way of looking at the issue by comparing a full rope-towed trolley crane with up to 120t capacity with a full machinery trolley 60t crane. If we compare a 120 ton ropetowed trolley with 60 ton main hoist on machinery trolley, says Huang,the wheel load might not be much different. Trolley weight of a machinery trolley could be 65 tons more than a rope-towed trolley, or more than a 60 tons lifting capacity increase. Certainly the boom weight will be increased significantly due to doubling the lifting load. Consequently, the wheel load increase might not be a big factor if it is a rope-tow trolley with 120 tons capacity versus a machinery trolley with 60 tons SWL.

Konecranes Boxhunter full machinery trolley arrangement, at TCB Barcelona sion, the size of the hoist rope has to be increased, for example, from 28mm to 40mm, sheaves would have to be increased accordingly and additional rope support or maybe a second centenary trolley might be required.This will push maintenance costs up and the larger hoist ropes would be much more difficult to replace. Paceco suggests that, based on previous experience, a gradual increase in crane capacity, say from 65t to 80t, seems a reasonable approach and most likely could lead to a more successful application than a 120t crane.This would also generate more interest from both manufacturers and the customers to be involved together and has less risk. Adopting a cautious approach, however, may not deliver any real benefit for some terminals. Sisson from JWD points out that terminals handling a high percentage of 40fts, such as those on the US west coast where four 40fts are handled for every 20ft, could benefit significantly from twin 40 handling.

Load control
Trying to shave weight off the crane structure presents risks in terms of structural rigidity and stiffness. As Derks explains, stiffness is a productivity and a safety issue. A crane driver will slow down until comfortable if the

Not convinced
Oja, on the other hand, questions whether the effect of a machin-

Other considerations
As Paceco points out, the possibility of increased productivity is all very well but operators need to consider the extra maintenance costs of higher capacity cranes. Future proofing a cranes geometry by specifying greater outreach and lift height does not make service and maintenance that much more difficult, but the same cannot be said of increased load capacity. If the load is increased to 120t and the main hoist lifting system remains 8-rope fall suspen-

Evaluating Ergoseat
The advantages claimed by Dutch crane cab specialist Merford for its Ergoseat design appear to have been backed by independent research carried out by TNO Work and Employment. This is part of TNO, Europes second largest research institute for technological and strategic research and consultancy, also based in Holland. Merford launched Ergoseat a few years ago, in conjunction with a round cabin called Ergocab 2000 (ERG 2000). The idea was to reduce the loads on the drivers back and neck muscles and also improve the drivers view. The drivers typical bent forward posture is made easier by installing two fully adjustable armrests, with integrated controls, which support his upper body. Furthermore, the cab is suspended from the ceiling, allowing for more unobstructed glass area in the cab floor. MGMs with the original cabs, comparisons could be made.

Stretching it
Most of Thamesports drivers prefer Ergoseat to the traditional seat and today four of the MGMs have been retrofitted with ERG 2000 cabs with Ergoseat, and a fifth will also be converted. Those drivers who do not prefer Ergoseat say it is because they can push the back of the traditional seat further back.Within the current design of the ERG 2000 cab, it is quite difficult to stretch the back during micro breaks. Merford is looking into this. A strong point for Ergoseat is a wedge in the front part of the cushion and the possibility to spread the legs underneath the armrests. This maintains leg support while also completely clearing the view underneath (Figure 3). There were mixed results concerning the joystick operation and Merford itself conceded that the joysticks on these particular Ergoseats were too long and have too much fore-aft travel. Ergoseat armrest consoles are now fitted with smaller joysticks. But most crane drivers are used to long ones, so this can take getting used to. At Thamsesport the ERG 2000 itself was preferred over the original cabs except in one respect - it is smaller and does not give the same sense of space. This is easy to understand: more space reduces the sensation of height. A traditional seat requires a larger cabin compared to the Ergoseat. However, Merford stresses that Ergoseat does not have to be supplied with its ERG 2000 cab. Many Ergoseats are specified with larger cabs with more traditional shapes because of the sense of space - eg 18 Kalmar cranes for Antwerp customers. July 2004

Bio-mechanically
TNO first evaluated Ergoseat on bio-mechanical grounds (Figures 1 and 2). Although the neck and trunk posture using a conventional seat are similar, the mechanical loading on the lower back was found to be up to 50 per cent lower with Ergoseat due to the armrests. No significant differences were found in relation to the neck. There were counteracting forces with regard to shoulder load. However, Ergoseat allows the driver to vary shoulder load much more over the course of the shift, according to the extent to which he leans on the armrest. A practical evaluation was then carried out at Thamesport. At that time, an ERG 2000 cab complete with Ergoseat had been retrofitted to two of Thamespor ts MGM quay cranes. As the drivers switched between these cranes and other 24

CARGO HANDLING
Terminals where the 20ft mix is 50 per cent or more, however, would want to handle 4 x 20ft laden containers, otherwise the productivity gain would be marginal.This requires a crane capacity of 100t or even 120t. Noting that handing four 20fts under one spreader would be complex, Paceco comments that if this is really desired, improved logistics could make it possible for a number of 4 TEU lifts to be achieved with 80t capacity. Many terminals already use twinlift spreaders on 40t cranes when handling empty or light containers. inverse configuration to the semi-rope trolley today. As is well known the advantage of a rope towed trolley is its light weight which allows higher acceleration than a heavier machinery trolley. Putting the hoist machinery on a rope-towed trolley would negate some of that advantage but, says Slater, would still give better acceleration than a full machinery trolley crane with a self-driven trolley and eliminate any wheel slip. The well-known benefits of having the hoist machinery on the trolley include a much simpler reeving system with fewer sheaves and much less rope and, therefore, reduced maintenance. One of the benefits of a full machinery trolley is that no catenary trolley is required to support ropes along the length of the boom.With Slaters suggested configuration only the trolley ropes would be running the length of the boom and he considers rope supports would be adequate and a catenary trolley not needed. Slater considers that this configuration combines the best of a rope and machinery trolley and says that it has been considered in some recent crane projects. It was, for example, an option for the cranes for Maersks Pier 400 terminal in Los Angeles, but was not selected in the end (Noell full machinery trolley cranes). with an 18-row outreach without needing any drastic reinforcement of absorption of earthquake forces. The weight reduction has been achieved through a 3-point hanging boom tension bar and trapezoidal boom and girder structure. The trolley is a full rope-towed design and the tilt system, which MHI used to install at the seaside end of the boom, has been moved to the landside end of the girder and installed with the small turn device and anti-snag system. No other information is available at present.

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supplied in the past few years weigh more on the rails then they do in the books. In one case, cranes supposed to weigh 1600 tonnes are reportedly nearer 2200 tonnes. But there is more to this than dock loads and power consumption. There have been cases of cranes toppling because the weight of critical components such as the foreboom and the trolley exceeded the weight used for the design calculations. In one case in Europe in recent years, following a fatal accident when a boom collapsed onto the deck of a ship, the boom and trolley were each found to weigh 85 tonnes when they were supposed to weigh 60 tonnes. Inspection of other cranes of the same make and design revealed stress cracking in critical areas such as backstays and forestays.

Another angle
With at least a 50 per cent price premium on the purchase price of the crane and perhaps also significant expenditure on quay infrastructure, a cheaper way to increase productivity might be simply to increase crane density. Berth productivity records over a single vessel claimed by terminals in the Asian region over the last 12 months include: PTP Tanjung Pelepas - 4316 containers from a vessel in under 13 hours at an average hourly rate of 340 gross berth moves per hour using eight cranes; a staggering peak of 381 moves/hour with eight cranes at the Qingdao Qianwan Container Terminal in China. This level of productivity could perhaps be achieved with fewer twin 40 or double trolley cranes and less labour but it is debatable whether this would be a more cost-effective approach. Furthermore, some terminals are looking to automation to deliver cost advantages and, as Derks from Kalmar points out, switching to tandem operations would be more difficult for an AGV terminal than, say, for a straddle carrier terminal .

MHI lights up
Mitsubishi Heavy Industries (MHI) has recently introduced a new generation of super lightweight container crane that it claims enables a 22-row outreach to be built on a dock initially built to take cranes

Verify the weight

Several crane makers note that in many tenders nowadays they are required to verify the total weight of the crane and critical components. A number of cranes

Rope trolley variant

Bob Slater, vice president of Californiabased McKay International Engineers, has suggested another trolley/hoist drive variation where the hoist machinery is mounted on a rope-towed trolley - the Overall,TNO concluded that Ergoseat may improve performance because of the better view, greater comfort, etc.The armrests also provide more stability, which is very useful when spotting the containers. Merford also believes that the armrests in combination with the seats ceiling mounting reduce the influence of shock and vibrations on the controls. In most traditional cabs only the seat is suspended and not the controls. Figure 1: working posture with Ergoseat. (TNO)

Figure 2: traditional working posture. (Ibid)

Figure 3: the view between spread legs from top-suspended Ergoseat through glass bottom of the cabin. (Merford/TNO)

July 2004

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CARGO HANDLING

t is a commonplace that many container terminals are under pressure to stack higher because of increases in traffic, scarcity of land, longer dwell times, higher peaks as traffic gets concentrated into certain days and average moves per call go up, etc. Raising the height of existing RTGs can be a cost-effective, quick fix (unless the trolley requires modification). The extra mass of the leg extensions is usually insignificant for wheel or ground loads and there is no need to alter the ground layout or the tractor/trailer circuits.

Raising the roof with RTGs I

Charleston job
A big project has recently been completed at the Port of Charleston where, as previously reported (WorldCargo News, September 2003, p7), the South Carolina State Port Authority (SPA), set about raising 10 Konecranes RTGs at its Wando Welch terminal by 10ft - from 1 over 4 to 1 over 5 x 9ft 6in high containers.

SPAs Wando Welch, Charleston facility, showing two raised RTGs on the left foreground). Note that the new leg section has been cut about three quarters of the way up the old leg. In the background are two unraised RTGs and, just visible in the far background is an older, Paceco Transtainer (tan colour) The SPA awarded a turnkey contract to Koneports America, which subcontracted the design work to KCI Konecranes, while parts and materials were also sourced in Finland. Koneports America provided the labour, materials and equipment and SPA the work area and machines. Mobile cranes were used to remove the trolley and the trolley girders, position the leg extensions and refit the trolley and girders. The contractor was given 10 days to complete the first machine, including fitting new ropes, reprogramming the PLC, recalibrating the anti-away controls, etc, and seven days for each of the other nine. But it turned out quicker! Mike Stresemann, SPAs manager, heavy lift, explains that typically Fridays are the busiest days and normally all the machines are needed then. So SPA agreed to hand over one machine at about 18.00 hours every Friday, and wanted it back in service the following Friday morning. In April this year SPA ordered four 1 over 5 RTGs from Konecranes for Wando Welch (for delivery this December) but, as Stresemann points out, all SPAs Konecranes so far - 21 since 1998 - stack 1 over 4 high. So far 10 have been raised but there are no plans to raise any of the other 11. Two of them could be raised relatively inexpensively but on the other nine the hoist drums are smaller and would need to be replaced with bigger drums to wind round the extra rope length. SPA estimated that this would almost double the cost of simply raising them.There are many older RTGs at Charleston of different makes. These are usually slower and have lower SWLs, so the cost of raising them would be difficult to justify.

RTGs are being raised by 6m (20ft) from 1 over 3 to 1 over 5 x 9ft 6in high at ICTSI groups Baltic Container Terminal (BCT). This project, along with four new 1 over 5 RTGs ordered from Kalmar, is part of ICTSIs planned US$80 mill spend for BCT aimed at eventually doubling capacity (WorldCargo News, June 2003, p10 and January 2004, p10). This is on top of the Zloty155 mill (US$42 mill) which ICTSI paid for the 20year (extendable) BCT concession. Other new equipment ordered includes a Panamax gantry crane from Konecranes, eight Kalmar PT120 terminal tractors and 11 Buiscar skeletal trailers.A new terminal operating system is also being installed (see box story). The oldest of the RTGs to be raised are two Valmets which date from 1993, fitted with ABB dc drives, followed by two with the Sisu marque and finally four Kalmar machines supplied in 2001-3 with ac drive controls. All parts and materials for the raise, including new safety walkways, are being supplied from Finland. BCT is carrying out the work under supervision of Kalmar engineers, who are also responsible for reprogramming the PLCs, tweaking the software and recommissioning. At the time of writing, one machine is back in service and work on the second had started.The work is slated for completion in October (week 41).

The first raised RTG at BCT, Gdynia, with the extension pieces on top of the old leg. Note also the new walkway.The small picture below shows the special attachments fitted to the heavy lift beam of the ship-to-shore crane to raise the trolley girders and the trolley back into position higher off the ground and there is less stability in an e-stop situation. 30 Kalmar RTGs for various customers - in Tr inidad (4), Buenavantura 6), New Jersey (10), Oakland (4), Oslo (4) and Saint Petersburg (2) - have been assembled by BCT personnel in Gdynia - as well as a straddle carrier for Gdansk - and its drivers have been used to test drive many of them. This work for Kalmar can no longer continue at BCT as its container traffic has shot up (by 23 per cent last year to 304,745 TEU), but is being carried on in another part of the Port of Gdynia.

Neat solution
No information is available on the cost of the project, but BCT is saving money by carrying out the work itself and it has come up with a neat way of doing it. The area is at one end of the terminal and the RTGs are positioned under the backreach of the Konecranes ship-to-shore crane (acquired in 1999), so the trollies, trolley girders and extension pieces are handled by the crane, using a heavy lift beam and special lifting tools which look like C hooks and weigh 150 kg each. The trolley is lowered onto a purpose-built stand, to allow easy fitment of the new ropes. As an added precaution, the opposite legs are fitted with cross ties when the top girders are removed. The special tools are particularly useful when the trolley is put back on. The ship-to-shore crane has an above rail lift height of 30m, so the clearance is much shorter when the RTG has been raised. The new RTGs ordered by BCT from Kalmar come with electronic anti-way as standard but it appears to be reluctant to commit to retrofitting electronic antiaway on the raised RTGs, despite the straight falls and the higher lift height.There is a cost implication, as some modifications are needed on the trolley. One of the raised RTGs will be retrofitted, for testing. BCT is also hoping that its new TOS will avoid any need to fit (and retrofit) Kalmars Smartrail.

Good credentials
BCT has a long history of good maintenance and service and a skilled work force. It was set up in 1979 with three Paceco Portainers, five Paceco, 1 over 3, rubber-tyred Transtainers (4-wheeled) and two widespan rail-mounted Transtainers (for the intermodal rail yard) - all sourced from Fruehauf Espaa (now Paceco Espaa) under a Poland-Spain barter deal. Before ICTSI bought the concession in 2003, it commissioned an independent survey which concluded that this equipment had at least five years useful life left. Last year BCT contracted ABB Germany to retrofit one of the RMGs with new ac drives. Two Paceco RTGs were transferred last year to BCTs container repair depot. One or two of the other three may stay at BCT, to work the reefer/hazardous stacks which have to be kept low for inspection and safety purposes.

High lift
It is unusual for RTGs to be raised by as much as 20ft. Keijo Parviainen, Kalmars vice president, RTGs, explains that all the machines have the same 9.6m wheelbase as fitted to Kalmars largest RTG (a 1 over 7), so there is no extra sway problem on the long travel axis to worry about. Keijo Ronkainen, Kalmars manager, parts and projects, adds that it was probably just lucky, at least in terms of the Valmet marques at the terminal, that the drums are big enough to wind the longer ropes, so the trollies do not have to be modified. Kalmar does supply RTGs with a shorter wheelbase if required (eg 6.4m for LCICT, Laem Chabang). Such RTGs can work closer together in the stack, but the power pack has to be placed

Baltic project
Another big, ongoing project is in Gdynia where, as also previously reported (( WorldCargo News , March 2004, p32) eight Kalmar

Old friends
The co-operation between Kalmar and BCT goes back a long way, explains BCTs managing director Julian Karaszewski. In all,

BCT buys CTSSI TOS

BCT has purchased for an undisclosed sum a terminal operating system (TOS) from Container Terminal Systems Solutions Inc (CTSSI), ICTSIs Mauritius-based, software arm. The system, based on the original graphical terminal operations software acquired last year by ICTSI from PCR Terminal Systems of Florida, is expected to be fully operational by January 2005 after test runs this October. It consists of three modules that can be used as stand-alone programs: GTS (graphical tracking system) for container operations; GCS (general cargo system) for general cargo, CFS and limited container handling; and GTS rail software for intermodal rail management. The CTSSI software packages run in a Windows environment and thus offers flexibility in terms of hardware.Yard allocation occurs automatically at the time it is requested. 26 The system also provides real-time yard inventory for faster data access; integrated graphical yard and vessel planning in a single-screen full-colour view with real-time data input and reporting options; and management of multiple berths and yards on the same database. CTSSI software, which can be customised for any terminal, is currently being used by Indonesias Jakarta International Container Terminal and the Port of Authority of Guam and by ICTSI itself for its CFS operations in Manila. In theory, stacking density at BCT goes up by 67 per cent when the yard is converted from 1 over 3 to 1 over 5, but management can take a cautious approach as 1 over 4 can be phased in and will be sufficient for some time. By the time it is necessary to stack 6-high in some zones, the new TOS should offer maximum protection from unproductive shuffling. July 2004

WorldCargo news

CARGO HANDLING

US container ports get vertically-challenged

US maritime, port management, labour and safety figures will meet soon at the US Department of Labors Occupational Safety and Health Administration (OSHA)s Washington, DC headquarters to discuss its proposed new rules, issued last September, on the practice of VTL in all US seaports. The proposals follows years of discussion between OSHA and all sides of the container ports industry (see, for example, WorldCargo News, August 1998, p1 and pp3031). In the meantime the practice of VTLs appears to have grown, in line with the imbalance in US trades as so many outbound containers are empties. More terminal operators and stevedores use VTL than admit to using it. Some others do not use it but want to.

OSHAs long-awaited hearing on the vexed question of vertical tandem lifts (VTL) of containers will take place at the end of this month in Washington, DC
tainers are coupled by means of a liftlock, a semi-automatic twistlock or other inter-box connector that is used to couple intermodal containers vertically together so that they may be handled as one unit. VTL has generally been applied to two empty containers but its has also been used to load three empties or two containers loaded with light cargoes. VTL has been used in the US at least since 1986, when Matson Lines petitioned OSHA for permission to handle either empty containers or containers loaded with automobiles, two at a time. In 1993, the then Sea-Land Service filed for a permit to lift two empty 40fts using VTL. OSHA approved the requests but set out a list of eight points of compliance. For example, to use VTL Sea-Land had to inspect every container to verify that it was empty, mark it, ensure that the liftlocks were in safe operational condition, that the load did not exceed the cranes capacity and that containers were lifted vertically. It had to provide proper documentation of each lift and make this documentation available to third parties on request. Finally, it had to ensure that employees stood clear during the lift. 1997, had handled approximately 50,000 VTLs without incident. Sea-Land reported three incidents (with no injuries to workers) in 300,000 lifts. But according to one ILWU spokesman, they did not count the near misses. Other organisations reporting frequent use of VTLs include Tropical Shipping in West Palm Beach, Florida and SSA for operations outside the USA (Mexico and Panama).There is a particular issue with Tropical as it uses harbour mobile cranes which OSHA specifically wants to rule out from VTL practice (see page 1). While organised labour is generally opposed toVTL, there is less consensus among employers. Illustrating this point, Bobby Dawson, general manager, operations, of South Carolina State Port Au-

Imbalances in US trades have stroked the fires of demand for vertical tandem lifts of empties when reloading to ship thoritys Wando Welch and North Charleston terminals in the Port of Charleston, indicates that VTL is used rarely and cites safety as the major concern. This position was echoed by an SSA Marine spokesman regarding the companys US west coast operations. organisations, including ILO, ISO and ICHCA have commented on various aspects of VTL. Last year ICHCA came up with an advice note which came down in favour of VTL and, in effect, endorsed OSHAs position. In view of the potential hazards of VTL, said ICHCA, safe operational procedures, including appropriate precautions, need to be drawn up, agreed and published in order to ensure that VTL operations are carried out in a safe and proper manner...Provided that the operational procedures are implemented, VTL operations may be safely undertaken. The combined group wants to take this line as well but is concerned about the consequences of OSHAs deviation from international standards on the issue. The group has also highlighted the fact that one provision supported by ICHCA - lifting three tiers of containers - is omitted from OSHAs proposal.

Common sense
These conditions are mostly common sense precautions, but how have they been followed in practice? In the past 10-15 years SeaLand and Matson have between them handled over 350,000 containers in VTL mode. Matson, by

Simple definition
VTL is defined by OSHA simply as the operation of lifting two intermodal containers that are coupled together vertically (one on top of the other). The con-

Productivity
Obviously, a key issue is productivity. According to a combined management safety group, made up of the United States Maritime Alliance, the National Maritime Safety Association and the Pacific Maritime Association, VTL is an absolute necessity if US ports are going to remain competitive. But does VTL really increase productivity and, if so, can what the ILWU regards VTL as an inherently dangerous practice that cannot be performed safely ever be justified? Alternatively, is organised labour really concerned about safety or the impact on longshore jobs? Why would any terminal operator want to use VTL unless there was a gain in efficiency? The gains apply to vessel (un)loading and the crane gangs may experience a reduction in working hours. (Conversely, on the landside VTL creates more labour-intensive activity than it takes to handle single containers). OSHA states that VTL results in demonstrable savings in both crane time and labour hours, translating into cost savings.The ILWU has taken exception to this. It argues that OSHA has relied on outdated data and has not carefully considered all the productivity issues. Going back to 1994, OSHA proposed a revision of its terminal and longshore standards, to reflect the opinion that during a VTL operation, the upper container and twistlocks become a lifting device and must be inspected and certified.

Loose gear
Both ILO and ISO made statements on VTL in 1998 and 2000 respectively. After a meeting with the US Maritime Advisory Committee on Safety and Health (MACOSH), ILO indicated to OSHA that it considered semiautomatic twistocks (SATLs) to be loose gear. This is significant because under ILO Convention 152, SATLs as loose gear should be inspected on initial use in a VTL and every year thereafter. ISO stated that SATLs, which had originally been considered for securing containers only, could be used to lift containers.This meant that the ISO approved VTL of up to three containers based upon the strength of the SATL and container corner fittings. ISO has indicated that its basic criterion for VTL is that the maximum total weight for a safe lift is 20 tons. The limit is based on a safe working factor of five, indicating that SATLs and container corner casting are capable of 100 ton lifts.

Butter side down

The ILWU agreed with this interpretation but has always questioned the ability of management to inspect the gear properly on a regular basis. On the east coast, the ILA has also indicated its concerns about potential failures of either the container or the twistlocks. Powerful support for the ILWU/ILA standpoint has come from Virginia International Terminals (VIT), Hampton Roads, which has come down firmly against VTL. As well as the human safety question, VITs director of engineering and maintenance Dave Rudolf cites potential damage to container cranes if two loaded containers are lifted by mistake. Like the unions, what concerns VIT is managements inability to guarantee that everyone involved with a VTL operation will always and everywhere follow the proper procedures. The last OSHA public hearing on VTL took place in January 1998 and since then a number of 28

Take on board
OSHA considers that the strength issue is not the only criterion for safe use of VTL and has adopted many of the ICHCA guidelines within its proposed rule making. These are: annual and ongoing inspections of liftlocks and containers a written plan for VTL a single type of twistlock on each ship load indicating devices (LIDs) on container cranes prohibition of lifts in 34 mph winds requiring pre-lifts to ensure proper engagement of liftlocks. But from the anti-VTL perspective, the bottom line is human error. How can anyone ensure that these guidelines will always be followed and how can they be policed? July 2004

CARGO HANDLING

WorldCargo news

Flexible solutions for loading problems

Self-loading trailers (SLTs) will always serve niche markets to fulfil specific regional or operational requirements. The weight of the lifting arms restricts the units carrying capacity relative to a conventional tractor/chassis road rig. This may not matter, particularly when carrying 40fts with cube out cargo, although the extra deadweight can effect fuel consumption. In most applications the SLT is a pick and carry roadgoing unit and provides far greater flexibility than a dumb trailer. The SLTs main markets of Scandinavia and Australia/New Zealand, where the top-selling designs were first developed, are relatively mature and replacements and renewals are the main source of sales. As the manufacturers develop their agent networks, more SLTs arrive on the market either through direct sales or through rental fleets. New niche uses are being found for them other than simply delivering or picking up a container between a factory and rail head or port terminal. In principle container flow areas with less developed transport and handling infrastructures should be natural growth areas for SLTs and indeed this has proved the case in many far-flung corners of the world.

A self-loading trailer can be used in a wide range of on- or off-road container-handling applications

as a key element in a logistic chain as even if the fuel dispenser were to be left on a trailer, it would not be as secure as a grounded tank.

Flexible friend
Although SLT manufacturers market the concept as a means of providing a grounded container requiring no additional investment by the consignee, in many cases, the system works best as an intermediate carrier between two

transport modes, such as a rail/ road interface, or a link between different types of port handling equipment. This flexibility has been taken to new levels at the Port of Gothenburg, which has found a novel use for the system when loading ro-ro vessels. The port employs a somewhat laborious method of loading full or partially full ISO tank containers on the upper decks of some ro-ro ves-

sels, where they are stowed using an SLT in conjunction with standard ro-ro terminal tractors and rolltrailers. In this export operation, road trailers arrive at the port carrying the IMCO class loaded tank containers which are lifted off by a reach stacker and grounded. Alternatively, if there is a surplus of rolltrailers, the unit can be placed on of these. When they are required to be

SLT being used for a complex-looking ro-ro loading move in Gothenburg

Not so easy
However, it can also be difficult to find fertile ground for SLT operations. For example, although potentially China would appear to hold considerable market promise, in practice this is not quite the case. Trucking is relatively inexpensive and factory output is so high that it can be more cost-effective to wait for the container to be stuffed or bring in an empty container and exchange trailers for one with a loaded container. Doug Baker, managing director of Containerlift Services, which operates a UK fleet of Steelbro SLTs, argues that while a container delivered to the ground will always cost more than a simple skeletal delivery, the benefits for certain applications justify this cost. However, in the UK a mobile 10 tonne capacity mobile ramp, incorporating hydraulically adjustable height range to match the container on a chassis to provide access to a small FLT, can be hired for 30 a week while similar type of structure can be manufactured considerably cheaper in China. As such, for a factory only receiving one or two containers daily with a fixed traffic schedule, an SLT may not represent the most cost-effective solution as long as the truck can wait or the chassis decoupled. dispensing of these fuels based on modular 6m or 12m ISO container dimensions. The units have a capacity of between 4500 litres and 10,000 litres and incorporate a double skin tank within a tank configuration to provide totally safe enclosure of the fuels. Also, the area between the tanks has a negative pressure, which allows for daily inspections of the units integrity to be carried out easily. The Transtank provides an immediate flexible solution to fleet fuelling and when empty, can be replaced by a full unit arriving on an SLT.With on-board, GSMbased remote fuel management and security systems, it can be easily positioned at trucking depots, mines and agricultural sites to provide a far more secure fuel dispensing system than the traditional fuel tank. In this example, the SLT acts

Fuel boost
However, if the container unit has to stay at its drop off point for longer periods, an SLT will provide a far more cost effective method of grounding and picking up the unit than an FLT or mobile crane, particularly for low throughput applications or for specific applications, such as distributing mobile fuel stations. Versatile Container Handling, the Steelbro distributor in South Africa, for instance, reports steady growth with sales of around one new unit a month, which it attributes mainly to the introduction of the new Transtank mobile fuel dispensing module. This is a totally self-enclosed diesel/kerosene mobile fuel station, which exceeds international safety standards for the storage and

Rodney Douglas Harris Steel

Rodney Steel, one of the worlds pioneering manufacturers of inter modal road transport equipment, has died at the age of 76, at the place he loved most - work. He joined the family firm, Steel Bros, in Canterbury, NZ, in 1946 and took over as governing director when his father George died in 1968. He is credited with the firms gradual transformation from car body builders to heavy transport eng ineer ing. The Steelbro sidelifter concept, developed in the 1980s, has unquestionably been a major contributor to the spread of containerisation and is today exported to 100 countries worldwide. Rod officially retired in 1997 but found it hard to stay away and continued in the post of company president. That same year he lost his wife Marjorie. They had been married for 47 years, a marriage blessed with July 2004

four children, John, Graeme, Richard and Maryann. Steelbro Board chairman PeterYoung said that Rodney Steel played an active role in the company business right until the end. It was only fitting he died at work, where he had spent much of the past 55 years. 29

WorldCargo news
loaded, the tank container is lifted on to a roll trailer (if previously grounded) and taken alongside the ro-ro vessel by a terminal tractor. At this stage, an SLT pulled, normally, by a 6x2 road tractor, is manoeuvred alongside the rolltrailer and the tank container transferred to the SLT bed. The rig then drives onto the ship and up the internal ramp leading to the weather deck followed by the terminal tractor pushing the empty rolltrailer. This is then parked alongside the SLT and the terminal tractor moves off, but normally stays on the weather deck, to allow the SLT to lift the tank container onto the rolltrailer after the stabilising arms have been extended. Once this has been achieved, the empty SLT and road tractor are driven down the ships ramp to the quay to handle the next tanktainer, while the terminal tractor manoeuvres the rolltrailer into its correct position on deck to allow the lashing crew to secure its sea fastenings. is the drivers visibility impaired when pushing the unit up the ramp, but if the tractor stalls or a free surface effect kicks in on a partly-loaded tank making it unstable when moving between a horizontal surface and an incline, then it is possible for the tank to part company from the rolltrailer or tractor and breach its shell, causing a spillage. As the tractor driver is behind the tank for a conventional upper deck access, any leakage would come into contact with him and a hot engine compartment. Using the SLT rig, it is possible to pull the tank up the internal ramp to overcome these potential hazards. However, in the UK and continental discharge ports, the tanks are handled conventionally by a 4x4 roro tractor down the ramp, with the tractor first. Interestingly, the ship observed loading in Gothenburg was also equipped with a 40 tonne elevator linking the main deck with the upper deck, although this was not employed. In this instance SLTs are being used in a purely in-terminal application, but SLTs purpose-de-

CARGO HANDLING

36 tonne test load on a Hammar 160 HS. This model can load a full 20ft tanktainer and access is available to the outlet valve by sliding back the rear arm signed for terminal use are often equipped with a top frame instead of chains and are double-sided to speed up load transfer. Such machines are usually heavier than pick-and-carry road transport units, but still considerably lighter than reach stackers and they impose much lower axle loads, so civil engineering costs in the terminal are minimal. recognising that they do not have to be worked by straddle carriers. This attitude reflects the ubiquity of SLTs in Sweden, which is home to Hammar Maskin. Hammar and Steelbro are the only two global players in the SLT business, although there are smaller regional players in New Zealand, Sweden, France, etc. Steelbro acquired the Klaus line and all its references a couple of years ago, but the US and UK militaries, which were leading customers of Klaus over the year appear to be moving away from this type of equipment.

NZ-built Steelbro SLTs operated by Containerlift in train handling duties at the Port of Southampton, UK quayside to weather deck transit, which can add significantly to what is normally a tight turnaround time. However, the port and unions consider this is the safest way to load hazardous cargo tank containers on the weather deck in the absence of shore cranes, where the SLT rig carries the tank up the ramp rather than have a ro-ro tractor pushing a rolltrailer. For a conventional ro-ro tractor operation, they argue, not only

Safety first
On average, it takes around 20 mins per tank container for the

SLTs welcome
As it happens, Gothenburg is unusual in that it has a special entry gate for pick-and-carry SLTs delivering or picking up containers,

Swinglift SLT built for UK market application by King Trailers

Ramping it up
Competition for self-loading trailers, with their ability to ground containers, comes not from infrastructure in the form of fixed loading docks but also portable loading docks. UK-based Apache is offering a new loading ramp designed to simplify the process of (un)loading containers on chassis and trailers. Apache is marketing the EasiRamp at a competitive price and says that the ramp high quality steel and is highly user-friendly. The entire device is portable and incorporates a hydraulic pump to raise or lower the platform. The ramps can load up to 10 tonnes and safety features have been prioritised with a non-slip surface, safety chains and wheel braces all coming as standard. Apache is making the ramp available to rent on three to 12 month contracts and they will also build Easi-Ramps to individual specifications. Portable ramps have always provided a way round the loading dock problem and as such competed against the grounding feature of self-loading trailers when it comes to container stuffing or stripping. The are readily available and inexpensive and a consignor of weigh-out cargoes does not have to worry about the extra 1-2 tonnes of tare of the SLT biting into his allowable payload. Whether they are a better solution is open to debate, however. More space is required because of the ramp angle and the approach to it. In high throughput applications in particular, there must be concerns about safety. In China, for example, there are hundreds of go-downs and factories stuffing containers without proper loading docks. Markets such as these are crying out for SLTs, particularly when the loading points are close to docks and container depots and only short drays are required.

The latest Apache loading ramp can take a load of 10 tonnes

30

July 2004

CHINA: PORT DEVELOPMENT

WorldCargo news

CT9 eases the pressure at Kwai Chung

Some 10 months behind schedule, Hong Kongs Container Terminal 9 (CT9) at Kwai Chung container port will be fully operational by the end of the year, increasing the ports annual handling capacity by 3.5 mill TEU to 17.5 mill TEU. The delay has incurred heavy but unspecified penalties for the construction company, a joint venture of South Koreas Hyundai Engineering & Construction Co and China Civil Engineering Construction Corp. Four of the six berths are now operating, the fifth will be handed over to Modern Terminals Ltd (MTL) in August and the last to Hongkong International Terminals (HIT) in November. Depending on the weather, construction work could finish a bit earlier, said HIT managing director Eric Ip June throughput at Kwai Chung was up 14.1 per cent to 1.09 mill TEU, pushing the figure for the first six months to 6.2 mill TEU, up 5.7 per cent. As expected, first half volumes at CSXWT fell more than 40 percent, while those at HIT rose over 20 per cent, terminals sources said. Throughput at MTL rose 1.5 per cent to 1.96 mill TEU and was up 14.4 per cent to 803,000 TEU at Cosco-HIT.

Shenzhen spillover
ACT has swapped its two Berths at CT9 for MTLs two berths at CT8 (West) sell its service in conjunction with that of CSXWT, which only has a 300m berth, because all new ships are over 300m long. When a bigger ship has to be berthed, CSXWT has to temporarily rent 50-60m of space from HIT on the left or MTL on the right.If it tries to lure a customer from either, it will lose Maersk Sealands business because HIT and MTL would not rent their parts of the berths for the bigger ships, one observer said. Another industry insider said CSXWT will definitely lose Maersk Sealands business at the end of this year when the carriers five-year contract expires because it is paying more in handling charges to CSXWT than MTL where it does most of its business. Maersk inherited the CSXWT contract when it bought Sea-Land Service, which had a stake in the terminal, then known as Sea-Land Orient Terminals (SLOT). Maersk Line, as it was known then, was a minority shareholder in MTL when it was set up and has been a major client since it opened in 1972. In 1994 Maersk sold its MTL stake to invest in Hutchison Port HoldingsYantian International Container Terminals (YICT) in Shenzhen and become its anchor client. Until three months ago, expectations were of flat growth this year but double-digit growth rates in May and June have raised hopes that volumes at Kwai Chung will rise five percent to about 12.7 mill TEU this year, though it will still be well short of the 13.5 mill TEU forecast for Shenzhen. After rising 14.5 per cent year on year in May to 1.13 mill TEU, Christensen said overall box growth in south China was up 16 per cent in the first half, resulting in a spillover from Shenzhen. When the market grows 10 per cent, Shenzhen can easily absorb it. When it grows 16 per cent, Hong Kong benefits, Christensen said. Overall, throughput at the Hong Kong port - including midstream and river trade traffic - grew 11.7 per cent to 10.93 mill TEU in the first half, indicating the full-year figure will top 22 mill TEU. Four of the six berths at CT9 are now in operation. The berthed at the first of HITs two berths last month Industr y executives said growth in the second quarter was partly driven by increased exports of wooden bedroom furniture from China because the United States has threatened to impose anti-dumping tariffs on Chinas furniture, which it says is being sold at up to 200 per cent under fair market value.
CSCL ASIA

is seen

Berth swap.
Four CT9 berths will be operated by MTL and two by HIT. As arranged, Asia Container Terminals (ACT), the new operator at Kwai Chung, has swapped its two CT9 berths with MTLs two berths at CT8 (West) and is installing eight new quay cranes and other equipment, including 20 RTGs, there. We will be open for business soon and are talking to shipping companies, a spokesman said. ACT has upgraded the CT8 West bollards and installed the same terminal operations software system as used by CSX World Terminals, which has proved to be highly efficient in supporting the latters one-berth CT3 operations, enabling it to handle more than 1 mill TEU a year in 2001 and 2002. CSXWT is a shareholder in ACT. But industry observers say that because ACT is a new kid on the block, it will have to do a lot of hard-sell marketing to win customers. No new container shipping companies are being set up and they will not be able to poach any big clients from HIT and MTL, which have very long-term and water-tight contracts with their existing customers, said a shipping executive. They are wining and dining potential customers, but they wont find me sleeping on the job, said MTL managing director Erik Bgh Christensen, referring to the February defection of Hanjin Shipping of South Korea from CSXWT to HIT, leaving Maersk Sealand as its largest customer. ACT will also find it hard to

The US imported more than US$307 mill worth of Chinese furniture in the first quarter, up a comparative 49 per cent. The value and volume of second quarter shipments are said to have exceeded those in the first three months as Chinese factories ramped up production to beat the expected levy.

Welcome relief
Because of steady growth last year, HIT and MTL have welcomed the new capacity coming on stream at CT9 because otherwise they would have had to stack higher and higher in existing yards and buy new equipment to handle the growth. We needed the extra capacity to absorb the growth of our existing customers, said Christensen. But the extra capacity has come at a time when growth at Kwai Chung has slowed to single digits. It was up only 1.5 per cent to 12.07 mill TEU last year.

Bridge study to finish this year

A feasibility study for the Hong Kong-Macao-Zhuhai bridge project in the Pearl River Delta in south China will be completed by the end of this year, according to Margaret Fong, Hong Kongs acting Permanent Secretary for the Environment, Transport and Works. We expect that by early 2005, there will be a clearer picture on the traffic demand arising from the bridge, Fong said, adding that one of the key tasks of the study is to determine the configuration of the Hong Kong section of the bridge and its connection with the North Lantau Highway. China Highway Planning and Design Institute has July 2004 been commissioned to conduct the study, which will focus on areas such as hydrology, the environment, landscape, traffic and financial viability. The Advance Work Co-ordination Group, composed of governments of Chinas southern Guangdong Province and the Hong Kong and Macao special administrative regions, has set up a project office in Guangzhou to monitor the study. The bridge, estimated to cost HK$15-18 bill (US$1.92-2.31 bill), aims to boost the development of the western Guangdong region and boost throughput at Hong Kongs Kwai Chung container port. 31

WorldCargo news

CHINA: PORT DEVELOPMENT

Shenzhen building capacity

The two container terminals in the western part of Shenzhen port in south China are expanding capacity to cope with the evergrowing volumes. The four-berth Shekou Container Terminals (SCT) is adding five berths under its HK$4 bill (US$513 mill) Phase III development, while Chiwan Container Terminal (CCT), which operates five berths, is building four more.

With container throughput growing at over 30 per cent a year in the Pearl River Delta, terminals in western Shenzhen are continuing to develop new facilities
date bigger ships. Berth four came on stream in January. At CCT, Berth 13 (the terminals sixth) will become operational in the first quarter of next year. The other three new berths (designated 5, 6 and 7) will be located about half a kilometre away at Mawan, separated by a power station. Berths five and six will become operational in 2005 and berth seven in 2006. Meanwhile at Yantian International Container Ter minals (YICT), located in eastern Shenzhen, eight berths are operational and the last of the four berths built under Phase III will come on stream by the end of this year, according to general manager Kenneth Tse.

Dredging underway
SCT general manager Cheyenne Yu said that dredging for three berths has begun and berth five is expected to become operational in the first quarter of 2005. Berths six, seven and eight will follow in 2006 and 2007 and berth nine in 2008. If business remains strong, we will speed up the process,Yu said. He said the approach channel has been dredged to -14.5m, enabling berths three and four to handle 8,000 TEU ships. When needed, quayside depth will be increased to -17m to accommo-

Short of space
Erik Bogh Christensen, general manager of Modern Terminals (MTL) of Hong Kong, which has minority stakes in SCT and CCT, said that with cargo volumes growing by 3 mill TEU a year in south China, western Shenzhen terminals will run out of space by 2008. That is when the first berth of a new terminal MTL is preparing to build at nearby Dachan Bay is expected to become operational. MTL will take a 65 per cent equity stake in Phase I of the project, with the Shenzhen municipal

authorities taking 35 per cent. Christensen said that Beijings approval for the five-ber th Dachan Bay Phase I, with an annual handling capacity of 2.5 mill TEU, is likely to be received by the end of this year, but site planning and preliminary dredging work has already started.The terminal, to be developed in four phases, will have 10-12 berths with an annual handling capacity of 6-8 mill TEU by 2020. However, YICT will not suffer capacity constraints. Being located on a greenfield site, it can be easily expanded to include up to 25 berths.

Throughput at SCT is expected to top 2.3 mill TEU this year YICT, minority owned and managed by Hutchison Port Holdings and which accounts for about half of Shenzhens throughput, saw volumes rise 19.5 per cent to 2.76 mill in the first half of this year. Full-year throughput is expected to top 6.4 mill TEU. Volumes at CCT rose 63.8 per cent to 1.17 mill TEU in the same period. According to senior commercial manager Terry Leung, fullyear traffic will top 2.6 mill TEUs and may reach 3 mill TEU.The terminal attracted 10 new services in the first half, increasing the number of weekly services to 38. Throughput at SCT rose 58 per cent to over 1 mill TEU in the January-June 2004 period, with the full-year figure projected at more than 2.3 mill TEU, 500,000 TEU higher than last year. SCT has gained 17 new services this year, including two by Orient Overseas Container Line (OOCL) of Hong Kong, increasing the number of weekly services to 32. Around 1 mill TEU of Shenzhens throughput is accounted for by smaller facilities, which have been licenced as multi-purpose terminals but concentrate on handling the coastal container trade, which is more profitable. Much of Shenzhens growth is coming at the expense of the terminals at Hong Kongs Kwai Chung container port because it costs manufacturers in Chinas Pearl River Delta US$200 more per TEU - mainly in trucking and waiting time at the border - to ship through Hong Kong. That means consignees saved around US$1.2 bill in the first half year alone by choosing to ship their goods through Shenzhen terminals. The much-touted efficiency of Hong Kong terminals no longer justifies the extra cost, according to a shipping company executive. Efficiency is about the same in Shenzhen and Hong Kong now. Crane moves per hour are very comparable, he said.

Ever upwards
Throughput at Shenzhen, Chinas second-largest container port behind Shanghai and the worlds number four, rose 31.6 per cent to 6.05 mill TEU in the first half of 2004, indicating the full year figure will top 13 mill TEU as volumes are usually higher in the second half because of Christmas shipments.

14 new container berths are under development in western Shenzhen, including five at SCT, four at CCT and five at the planned Dachan Bay development

Nansha shapes up
Four multi-purpose berths will become operational in September at Nansha in the Pearl River Delta and plans are being drawn up to build four container berths at a cost ofYuan2.6 bill (US$314 mill) to handle around 2 mill TEU by 2010 (see WorldCargo News April 2004, p11). Although Minister of Communications Zhang Chunxian warned in February about overinvestment in ports in south China, authorities in Guangzhou, capital of Guangdong province, are intent on pushing ahead. Xiong Wenhui, directorgeneral of the Nansha Development Zone Economic Development Bureau, said Nansha port would not threaten Hong Kongs position as the worlds No 1 container port. Hong Kong will always be the leading international shipping centre in the Pearl River Delta. Shenzhen, Guangzhou and other ports will be complementary, he said, adding that the fast growth in foreign and domestic trade in the region meant existing facilities would be exhausted soon. By 2005, the added value of the logistics industry in Guangdong will reach Yuan270 bill, making up 15.6 per cent of our economy. The industry will grow 11 per cent on average in the next 10 years, said Xiong.As the world manufacturing base 32 emerges in the Pearl River Delta, the logistics industry will provide even more opportunities. Japanese carmaker Toyota has invested Yuan2.2 bill in Nansha and Japans JFE Steel has formed a joint venture with Guangzhou Iron and Steel Enterprise. Work has started on a 400,000 tonne steel plate plant, with a Yuan1.4 bill investment.These industries need a lot of oil, coal, iron ore and other raw materials. Nansha port will handle their needs, Xiong said. According to Guangdong governor Huang Huahua, the plans are to expand ports despite the province being positioned as the manufacturing hub with Hong Kong as its services centre. Guangdong exports through Hong Kong increased by US$40 bill to US$205.4 bill last year, Huang said, underlining the need for the province to develop its own container port business.The provinces container throughput grew by 30 per cent last year, compared to Hong Kongs growth rate of just 6.8 per cent. According to Development and Reform Commission director-general Chen Shanru, Guangdongs container throughput is expected to double to 40.5 mill TEU by 2010.Can all these [boxes] go through Hong Kong? I dont think there is enough land, he said. July 2004

CHINA: PORT DEVELOPMENT

WorldCargo news
pany now has two berths that are operated under a joint arrangement giving a combined capacity of around 2 mill TEU/year. A further five berths are being built in Shekous Phase III development. At Chiwan, CMHI has converted a berth previously earmarked for domestic containers, berth 12, for international container services. Although a relatively small berth designed to handle 120,000 TEU/year from up to 30,000 dwt vessels, berth 12 has 89,500 m2 of valuable yard space behind it. Berth 13 is now under construction (see page32). Another terminal in the western Shenzhen area is planned at Dachan Bay and although CMHI does not have a direct stake in this development, it has an interest through its stake in the majority shareholder, Modern Terminals Ltd.

China Merchants takes the credit

Last month, China Merchants Holdings (International) Company Ltd (CMHI) signed a 3-year loan agreement that allows it to access up to HK$1.2 bill in development funding from seven banks. Last year, the company announced a new strategy of mass investments in ports and chairman Dr Fu Yuning said the credit facility would be used to sustain and expand CMHIs developments in ports such as Shenzhen, Tianjin, Ningbo, Qingdao, and Zhangzhou and related marine and logistics services so as to realise our goal of being a leading ports operator in China and Hong Kong. CHMI plans to add approximately 10 berths a year to its facilities over the next three years. By 2006 it expects to have a total of 80 berths across its terminals and to have doubled its throughput from close to 10 mill TEU last year to 20 mill TEU by 2008. The company claims to be unique in China as the only public port operator that not only owns, but also operates ports and terminals across the Pearl River Delta,Yangtze River Delta and the Bohai Economic Rim. Major development projects are currently underway at each location. In the Yangtze area, CMHI is investing in the fifth phase expansion at the Beilun port, known as the Ningbo Daxie Island International Container Terminal.This fourberth development will add an additional 2 mill TEU/year to Ningbos capacity when completed in 2007 at a cost of US$430 mill. CMHI has a 45 per cent stake and, importantly, management rights, while 45 per cent is held by the port authority and the remainder by Beijingbased China International Trust and Investment Corp. CMHI spokesman Xueqian Park reports that construction is moving very fast and the first two berths are expected to be in operation by the beginning of 2005. In the Bohai Rim CMHI has agreed to invest up to US$500 mill in Qingdao Qianwan Modern International Logistics Park. The company has a 90.1 per cent share in this development, which includes seven berths and a logistics park. Two berths will be multi-purpose while the others will be dedicated container berths. Final completion is scheduled for 2010. At Tianjin, CMHI is one of the companies involved in the Tianjin Five Continents International Container Terminal Co Ltd., a joint venture formed last December by Cosco Ports (Tianjin), CMIT (Tianjin), China Shipping Terminal Development Co, CSXWT New World (Tianjin), and Tianjin Port (Group) Co to build manage and operate the Tianjin Dongtudi Container Terminal. Tianjin Dongtudi will have four berths over 1,202m of quay with a depth of 16m and a total area of roughly 550,000 m2. Capacity is expected to be 1.5 mill TEU per year. In the Pearl River Delta, CMHI is focusing on western Shenzhen where it currently has stakes in terminals at Shekou (Shekou Container Terminals) and Chiwan (Chiwan Container Terminal). At Shekou CMHI is a shareholder in two separate companies, SCT and SCT2. Each com-

Share issue for CMHI

Minority shareholders of Shenzhens Shekou Container Terminals (SCT) are baffled by majority shareholder China Merchants Holdings (International) Company (CMHI)s plans to assume 100 per cent ownership of the planned Phase III development. Observers say CMHI wants full control of Phase III in order to maximise profits from surging throughput, which rose 58 per cent to just over 1 mill TEU in the first half of this year at SCTs four berths built under Phases I and II.The five-berth Phase III would more than double the handling capacity of SCT, which is on course to handle more than 2.3 mill TEU this year. But SCT general manager Cheyenne Yu told WorldCargo News, China Merchants directors feel that with 100 per cent ownership, the approval process for Phase III from the central government could be expedited.The shareholding will certainly be diluted after discussions with minority shareholders later. Sources said the issue is complicating talks aimed at simplifying the ownership of SCT Phases I and II that will see CMHI, an offshoot of Chinas Ministry of Communications, taking 51 per cent and the other shareholders 49 per cent. At present CMI holds 32.5 per cent of Phase I and Cosco Pacific 17.5 per cent, with P&O Ports, Swire Pacific and Modern Terminals (MTL) holding 50 per cent between them. In Phase II, CMHI has 51 per cent, with P&O, MTL and Swire 49 per cent. The shareholders concern has come at a time when Phase III is slipping behind schedule. Construction of the first berth, which is due to become operational in the first quarter of next year, is already late and over budget. Construction industry sources said this is partly the result of design changes recommended by CMHIs inhouse project management team, after the company, alarmed at last years surge in steel prices, decided to switch from steel to reinforced concrete piling to cut costs. They said the cost and time involved in changing the design outweighed any cost benefit.By the time the changes were agreed, steel prices had started coming down, said one source. July 2004 33

WorldCargo news

CHINA: PORT DEVELOPMENT

Shanghai to outline port stake strategy

he Shanghai municipal government will soon re veal the extent of private participation in the four-berth Phase II of the new Yangshan deepwater port, according to a senior official. Private companies can participate in Phase II, which will be operational in 2006, said Zhang Huimin, executive deputy general director of Shanghai Deepwater Port Construction Co, the munici-

International container terminal operators are queuing up to get a slice of the action at Shanghais new Yangshan deepwater port
pal body overseeing the five-berth first phase of the project. Details will be ready by the year end. transport at the Ministry of Communications, foreign companies interested in developing and operating Yangshan Phase II will be required to form joint ventures with local companies.There is no strict regulation concerning the percentage of foreign funds allowed. The companies will have to form joint ventures and the percentage of ownership will be determined by the Shanghai municipal government, he said. A number of companies, including Hutchison Port Holdings (HPH), Modern Terminals (MTL) and Orient Overseas Container Line (OOCL) of Hong Kong, have already been in talks with the Shanghai authorities about taking a stake in the Yangshan development, the officials said. MTL has teamed up with China Shipping Terminal Development Co, an affiliate of China Shipping Container Line, to bid for a slice of the project. Others to have expressed interest include China Ocean Shipping Co (Cosco), Singapores PSA Corp, the UKs P&O Ports and APM Terminals of Denmark. HPH, the worlds largest port operator, would be interested if given management control of the terminal. Gu Gang, director of Shanghai Tongsheng Investment Group, which is managing the construction of the port, said the Phase II project would be open to all potential investors. The discussions have been going on for a while and we have no preference, he said. The new port, which will eventually have 52 berths and cost as much as US$18 bill to develop, is being built on Yangshan islands in the middle of Hangzhou Bay and will be connected to Shanghai by a 31 km bridge.The Shanghai municipal government has decided to let its listed company, Shanghai Port Container Co, operate Phase I, which is slated for completion next year. Phase II will cost considerably less than the Yuan14.3 bill (US$1.73 bill) being invested in the five berths and the bridge connecting the port to the mainland in Phase I, said Zhang.

Joint ventures
According to Zhang Guof a, deputy director-general of water

MTL is among a number of foreign operators looking to participate in Phase II of the Yangshan project, but it has also kept its options open by taking a 70 per cent stake in a new container terminal at Taicang handled 6.3 mill TEU in the first five months of this year, up 30 per cent year-on-year. A port official said the port was on track to reach its target of 13.5 mill TEU for the full year, up from 11.28 mill TEU last year, which was 34 per cent more than its designed capacity According to the Ministry of Commerce, Shanghais exports rose 54.5 per cent in the first half of this year to US$33.7 bill. Last year, the city and its two major catchment areas - Jiangsu and Zhejiang provinces - exported goods worth US$148.18 bill. Short term throughput growth may be hampered, however, by a shortage of handling capacity at Shanghai Container Terminals (SCT). New berths at Waigaoqiao Phase V in Pudong are not slated to come on stream until December this year. The latter will include two multi-purpose berths and two container berths with annual container handling capacity of 700,000 TEU. HPH, a major shareholder in Shanghai Pudong International Container Terminals (SPICT), which operates Phase 1 of the Waigaoqiao development, is likely to sign a deal next month to take a stake in Waigaoqiao Phase V, an official from the citys municipal port administration said. HPH has been in talks with Shanghai Port Container Co and its parent Shanghai International Port Group about operating the new facility. According to local press reports, the three companies have already signed a framework agreement to operate Phase V as

Number three
Supported by a strong manufacturing base in the Yangtze River Delta, Shanghai is the worlds third-busiest container port. It

Dalian Phase II gets underway

The Dalian Port Author ity (DPA) has reached an agreement to develop a second phase at Dayao Bay in a joint venture with PSA Corp, APM Terminals and Cosco Pacific. Phase I of Dayao Bay is operated by Dalian Container Terminal (DCT), a joint venture between the DPA (51 per cent), PSA Corp (44.1 per cent) and Maersk (4 per cent).The original agreement did not cover further phases and a new joint venture company has now been formed for Phase II. Dalian Port Group holds 35 per cent of the shares in the new company, PSA Corp 25 per cent and APM Terminals and Cosco Pacific 20 per cent each. The agreement is somewhat surprising as the DPA has previously said it was looking to foster competing stevedores at the port. Last year, it signed a Letter of Intent with Hong Kong terminal operator Modern Terminals Ltd (MTL) to develop a future phase at Dalian. Earlier this year, MTL reported that a development team is now on the ground in Dalian to follow up on the Letter of Intent signed with Dalian Port Authority at the end of last year. However, a third phase is planned for Dayao Bay and it may well be that MTL will play a role in that development. DCT currently has six berths and handled 1.67 mill TEU last year. Phase II will add another six berths, the first two of which are scheduled to be completed at the end of 2005 with the remaining four the following year, taking Dalians total capacity to 5 mill TEU/year. Four cranes with a 56m outreach are understood to have been ordered from ZPMC and Cosmos has announced that it will be supplying the terminal operating system.The total cost of Phase II is reported to be US$600 mill. Other facilities currently under construction at Dalian include a new two-berth automobile terminal in which NYK and Cosco Pacific both have a 30 per cent stake. The terminal is designed to handle 600,000 vehicles a year and is scheduled to be operational in 2006. Looking further ahead the port authority plans to relocate the Dalian Dadang domestic container terminal from the old inner harbour to Dayao Bay by 2008. The city of Dalian plans to redevelop the inner harbour into a tourist area and much of the old heavy industry, including Dalian Crane Works, has already been relocated from the city to outlying areas. July 2004

34

CHINA: PORT DEVELOPMENT

a joint venture. Cosco Pacific, which said earlier this year it would take a 20 per cent stake in the project, is now said to be out of the deal. Ningbo currently has seven berths servicing more than 105 container routes 40 of which are long-haul.Two more will become operational this year and China Merchants Holdings four-berth project on Daxie Island - known as Phase V will increase annual capacity by another 2 mill TEU by 2006 (see page 33). ture, said NPG spokesman ZhangYiyao. According to the NPG, the port is expected to handle more than 200 mill tons of cargo, with container volumes reaching 3.55 mill TEU this year. Upon completion of the Ningbo Cross-Sea Bridge in 2008, the port will be a two-hour drive from Shanghai, Zhang added. The 54 km bridge with six lanes across the Qiantang River is expected to be the worlds longest and cost Yuan12 bill (US$1.45 bill), 70 per cent of which will come from local companies and the rest provided by the provincial government. The br idge is part of Ningbos Yuan100 bill five-year investment programme in infrastructure facilities that began in 2001 and includes building a 250,000 ton oil terminal and expansion of the citys airport. The bridge will also link Ningbo with Suzhou in neighbouring Jiangsu province. Fierce competition between Shanghai and Ningbo for containerised cargo seems inevitable, though Ningbo officials say the city just wants to help Shanghais development as an international shipping centre. We plan to build the port into an outer deepwater port for the Shanghai area, Zhang said. Although planning officials estimate that Ningbos annual container throughput will surge to 8 mill TEU by 2010, analysts say existing projects will satisfy demand. Ningbos close proximity to Shanghai suggests that competition for container traffic is likely to be fierce

WorldCargo news

MTL into Taicang

While keen to participate in theYangshan project, MTL appears to have covered all the bases by signing an agreement with the Suzhou government to participate in the development of a new container terminal at Taicang in Jiangsu Province. Taicang is located close to Shanghai and is just 50 miles from the mouth of the Yangtze. MTL has taken a 70 per cent stake in the second phase development of the port, where four berths with a total length of 1000m are under construction at a total cost of US$128 mill. The aim is to have the first berth operational in the first half of next year. Taicang Phase I (Taicang International Container Terminal), in which MTL has a 51 per cent stake, also has four berths and 1000m of quay that are currently equipped with two ship-toshore container cranes and four multipurpose jib cranes.The main cargoes include bulk timber imports from Russia and Africa and other general cargo. Phase I will continue to handle both container and general cargo while Phase II, to be known as Suzhou Modern Terminals, will be developed as a dedicated container terminal. Seven quay cranes and 21 RTGs are planned for Phase II and procurement contracts are currently under negotiation. The first three cranes and nine RTGs are required to be delivered next year, followed by two ship-to-shore cranes and six RTGs in each of 2006 and 2007. When completed Phase II will have a capacity of 1.5 mill TEU/year. Despite its close proximity to Shanghai, the Suzhou government has determined to reduce its reliance on the Shanghai terminals and boost container capacity at Taicang.Throughput last year was round 50,000 TEU and MTL expects that to increase to 150,000 TEU this year. The longer term question, however, is how Taicang will be affected by the deepwater port at Yangshan as, like the current Shanghai terminals, Taicang is constrained by the depth in the Yangtze. However, Taicang marketing manager Serco Zhou says that Yangshan is too far away from Shanghai to affect Taicang and the additional cost of transportation, which will include a toll for the bridge to the terminals, is a major disadvantage.

Rising throughput
Situated on the East China Sea in Zhejiang province to the south of the booming Yangtze River Delta, Ningbo handled 2.76 mill TEU last year, up 48.6 per cent, and 1.46 mill TEUs in the first five months of this year. Ningbo port is now in its highspeed development period and will enjoy a brighter future due to its rich natural resources and advanced infrastruc-

Evergreen for Ningbo?

Also in relatively close proximity to Shanghai, Taiwans Evergreen Marine Corp is understood to have expressed interest in operating a two-berth terminal at the port of Ningbo through a joint venture between its Italian subsidiary Lloyd Triestino (LT) and Ningbo Port Group (NPG), the port authority. Officials at LT and NPG declined to comment, but port industry sources said preliminary discussions have been held to set up a US$250 mill joint venture, with each party holding equal shares. The terminal will be developed at Phase IV of the Beilun port area, which will eventually have nine berths, built at a cost of US$1.2 bill, with a combined handling capacity of 5 mill TEU/year. Evergreen, the worlds fourth largest container carrier, also operates terminals at Taichung and Kaohsiung in Taiwan, Colon in Panama and Taranto in Italy. Last month, NPG signed a similar agreement with Mediterranean Shipping Company (MSC) of Switzerland to develop and operate the two-berth Chuashan International Container Terminal at Phase IV of Beilun at a cost of US$250 mill, which will become operational in 2005. MSC operates three long-haul services from Ningbo and handled 150,000 TEU at the port last year, 30,000 TEU of which were transhipment boxes. HPH already operates the three-berth Ningbo Beilun International Container Terminals (NBCT) in a joint venture with the NPG. HPH has a 49 per cent stake and NPG holds 51 per cent of NBCT, which was built at a cost of US$300 mill in Phase II. Chinas fifth largest container port, July 2004 35

WorldCargo news

CHINA: CONTAINER INDUSTRY

CIMC on the chassis trail

B
uilding on its customer base and reputation for marine containers, China International Marine Containers (CIMC) has expanded its product line to include container chassis and a variety of highway trailers. A new company, CIMC Vehicle, has been formed as a full subsidiary of CIMC, focusing on the design and manufacture of trailer and chassis products. CIMC Vehicle factories in Yangzhou and Shenzhen are now producing a wide range of equipment for both Chinese domestic use and for export. The Yangzhou facility, which CIMC inherited when it took over Yangzhou Tonghua Special Vehicle Co in 2002, has been expanded and modernised to allow it to build all types of highway rolling stock, including container chassis, tank trailers, vans, dump trailers, cement mixers, low-loaders and car carriers.The site covers an area of 238,000 m2, with fabrication and production per-

Already the worlds largest container manufacturer by far, CIMC is fast becoming a major player in the container chassis and trailer markets
formed within a 60,000 m2 plant. Approximately 60 per cent of Yangzhous output is for Chinese domestic customers, while around 150 production workers per shift are employed for USdestined container chassis.

CIMC Vehicle opened its new, state-of-the-art chassis manufacturing facility in Shenzhen earlier this year pacity is 1500 units per month using the 40ft gooseneck chassis as baseline reference. Maximum combined multi-shift capacity totals about 2200 40ft gooseneck chassis per month. CIMC Vehicle is already becoming the major chassis supplier to leading Chinese trucking and logistics companies such as China Shipping Logistics, China Railway Express, China MerchantsLogistics, and Cosco Logistics. US customers for container chassis thus far include Cosco, KLine, Matson,Yang Ming, OOCL, Trac Lease and Maersk Sealand. Both factories also export trailers and chassis to Australia and Japan.As global sourcing becomes more recognised as a way of doing business, the customer base and the list of export countries will inevitably grow. plements and supplements an already strong quality control effort.

State-of-the-art
The state-of-the-art Shenzhen facility, which is adjacent to the CIMC Yantian container plant, is the latest addition to CIMC Vehicles operations. Opened in the spring of 2004, this plant produces primarily container chassis - 20ft, 40ft, 45ft, 40-45ft extendibles - and ter minal bombcarts, but also has the capability to produce other types of rolling stock. Chassis production workers number 150 per shift. Much of CIMCs future pro-

Inland moves
Two more trailer manufacturers have recently joined the CIMC Vehicle fold and will enable the company to provide a more comprehensive service to the Chinese inland market. Jinan CIMC-Kgel Special Automobile Co in Shandong Province, which has been manufacturing trailers since 1993, has the capacity to produce 4,000 units per year of various types. There are over 150 models in the companys range, from 0.5-40 ton capacity, including refrigerated and insulated trailers, box trucks, tankers, special trucks and Europeantype swap bodies. Huajun Vehicle Ltd, located in Zhumadian, Henan Province, was originally founded in 1952 and manufactures a wide range of semi-trailers, tankers, self-unloading vehicles and vans. Currently it has the capacity to produce 10,000 units/year, but measures are in hand to boost annual capacity to 30,000 units.

Ready to roll: Maersk Sealand is one of a number of customers in the US to have placed orders for container chassis with CIMC Vehicle duction planning will be served by this factory.While intended to focus on the export business, Shenzhen builds trailers and container chassis for Chinese domestic use as well. For container chassis, the two factories combined per-shift ca-

Quality first
Any concerns over quality and the high cost of transportation that might impede global sourcing of rolling stock from China are being addressed. CIMC employs finite element analysis, sophisticated design software and tight quality control, and is finding innovative and volume-based delivery alternatives for its export equipment. The existing customer base, built in a short period of time, attests to the quality of the companys output and the viability of global sourcing. The need to comply with US DOT and other regulations means that CIMC cur rently sources some components in the US and ships them back to China for final chassis assembly. However, major US trailer component manufacturers are starting to establish their own factories in China from which they will export to their markets in the rest of the world. With US DOT-compliant axles, wheels, tyres, etc soon to be manufactured locally, it clearly makes sense to assemble them into complete chassis in China and ship the finished product to the end user. Both lead time and delivery costs will benefit. CIMC also encourages component manufacturers to maintain inventory and quality control inspectors on-site in its factories. This practice both com-

Early days
When compared to other parts of the world, container chassis use in China is still in its early stages. Most containers are carried over the road on large combination chassis (8 or 12 twistlocks) or on platform trailers. Weight limitations, while legislated, are not well enforced. Hence heavy chassis and trucks proliferate. In the USA and many other countries, highway weights are strictly enforced. Strong but lightweight chassis are the obvious choice for carrying containers. It seems inevitable, therefore, that logistics service providers in China will turn to the use of specialised container chassis, similar to those used in the US and Europe, as a more efficient and effective way to transport containers. China is building an infrastructure of modern highways and bridges.As it continues to develop its industry and economy, container transport within the country is sure to evolve into the more proven methods used in fully developed countries. CIMC seems well positioned to supply this need and to compete in the new global sourcing marketplace.

Extensive use is made of sophisticated design software and finite element analysis in the chassis design process

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July 2004

CHINA: PORT DEVELOPMENT

WorldCargo news

CT9 eases the pressure at Kwai Chung

Some 10 months behind schedule, Hong Kongs Container Terminal 9 (CT9) at Kwai Chung container port will be fully operational by the end of the year, increasing the ports annual handling capacity by 3.5 mill TEU to 17.5 mill TEU. The delay has incurred heavy but unspecified penalties for the construction company, a joint venture of South Koreas Hyundai Engineering & Construction Co and China Civil Engineering Construction Corp. Four of the six berths are now operating, the fifth will be handed over to Modern Terminals Ltd (MTL) in August and the last to Hongkong International Terminals (HIT) in November. Depending on the weather, construction work could finish a bit earlier, said HIT managing director Eric Ip June throughput at Kwai Chung was up 14.1 per cent to 1.09 mill TEU, pushing the figure for the first six months to 6.2 mill TEU, up 5.7 per cent. As expected, first half volumes at CSXWT fell more than 40 percent, while those at HIT rose over 20 per cent, terminals sources said. Throughput at MTL rose 1.5 per cent to 1.96 mill TEU and was up 14.4 per cent to 803,000 TEU at Cosco-HIT.

Shenzhen spillover
ACT has swapped its two Berths at CT9 for MTLs two berths at CT8 (West) sell its service in conjunction with that of CSXWT, which only has a 300m berth, because all new ships are over 300m long. When a bigger ship has to be berthed, CSXWT has to temporarily rent 50-60m of space from HIT on the left or MTL on the right.If it tries to lure a customer from either, it will lose Maersk Sealands business because HIT and MTL would not rent their parts of the berths for the bigger ships, one observer said. Another industry insider said CSXWT will definitely lose Maersk Sealands business at the end of this year when the carriers five-year contract expires because it is paying more in handling charges to CSXWT than MTL where it does most of its business. Maersk inherited the CSXWT contract when it bought Sea-Land Service, which had a stake in the terminal, then known as Sea-Land Orient Terminals (SLOT). Maersk Line, as it was known then, was a minority shareholder in MTL when it was set up and has been a major client since it opened in 1972. In 1994 Maersk sold its MTL stake to invest in Hutchison Port HoldingsYantian International Container Terminals (YICT) in Shenzhen and become its anchor client. Until three months ago, expectations were of flat growth this year but double-digit growth rates in May and June have raised hopes that volumes at Kwai Chung will rise five percent to about 12.7 mill TEU this year, though it will still be well short of the 13.5 mill TEU forecast for Shenzhen. After rising 14.5 per cent year on year in May to 1.13 mill TEU, Christensen said overall box growth in south China was up 16 per cent in the first half, resulting in a spillover from Shenzhen. When the market grows 10 per cent, Shenzhen can easily absorb it. When it grows 16 per cent, Hong Kong benefits, Christensen said. Overall, throughput at the Hong Kong port - including midstream and river trade traffic - grew 11.7 per cent to 10.93 mill TEU in the first half, indicating the full-year figure will top 22 mill TEU. Four of the six berths at CT9 are now in operation. The berthed at the first of HITs two berths last month Industr y executives said growth in the second quarter was partly driven by increased exports of wooden bedroom furniture from China because the United States has threatened to impose anti-dumping tariffs on Chinas furniture, which it says is being sold at up to 200 per cent under fair market value.
CSCL ASIA

is seen

Berth swap.
Four CT9 berths will be operated by MTL and two by HIT. As arranged, Asia Container Terminals (ACT), the new operator at Kwai Chung, has swapped its two CT9 berths with MTLs two berths at CT8 (West) and is installing eight new quay cranes and other equipment, including 20 RTGs, there. We will be open for business soon and are talking to shipping companies, a spokesman said. ACT has upgraded the CT8 West bollards and installed the same terminal operations software system as used by CSX World Terminals, which has proved to be highly efficient in supporting the latters one-berth CT3 operations, enabling it to handle more than 1 mill TEU a year in 2001 and 2002. CSXWT is a shareholder in ACT. But industry observers say that because ACT is a new kid on the block, it will have to do a lot of hard-sell marketing to win customers. No new container shipping companies are being set up and they will not be able to poach any big clients from HIT and MTL, which have very long-term and water-tight contracts with their existing customers, said a shipping executive. They are wining and dining potential customers, but they wont find me sleeping on the job, said MTL managing director Erik Bgh Christensen, referring to the February defection of Hanjin Shipping of South Korea from CSXWT to HIT, leaving Maersk Sealand as its largest customer. ACT will also find it hard to

The US imported more than US$307 mill worth of Chinese furniture in the first quarter, up a comparative 49 per cent. The value and volume of second quarter shipments are said to have exceeded those in the first three months as Chinese factories ramped up production to beat the expected levy.

Welcome relief
Because of steady growth last year, HIT and MTL have welcomed the new capacity coming on stream at CT9 because otherwise they would have had to stack higher and higher in existing yards and buy new equipment to handle the growth. We needed the extra capacity to absorb the growth of our existing customers, said Christensen. But the extra capacity has come at a time when growth at Kwai Chung has slowed to single digits. It was up only 1.5 per cent to 12.07 mill TEU last year.

Bridge study to finish this year

A feasibility study for the Hong Kong-Macao-Zhuhai bridge project in the Pearl River Delta in south China will be completed by the end of this year, according to Margaret Fong, Hong Kongs acting Permanent Secretary for the Environment, Transport and Works. We expect that by early 2005, there will be a clearer picture on the traffic demand arising from the bridge, Fong said, adding that one of the key tasks of the study is to determine the configuration of the Hong Kong section of the bridge and its connection with the North Lantau Highway. China Highway Planning and Design Institute has July 2004 been commissioned to conduct the study, which will focus on areas such as hydrology, the environment, landscape, traffic and financial viability. The Advance Work Co-ordination Group, composed of governments of Chinas southern Guangdong Province and the Hong Kong and Macao special administrative regions, has set up a project office in Guangzhou to monitor the study. The bridge, estimated to cost HK$15-18 bill (US$1.92-2.31 bill), aims to boost the development of the western Guangdong region and boost throughput at Hong Kongs Kwai Chung container port. 31

WorldCargo news

CHINA: PORT DEVELOPMENT

Shenzhen building capacity

The two container terminals in the western part of Shenzhen port in south China are expanding capacity to cope with the evergrowing volumes. The four-berth Shekou Container Terminals (SCT) is adding five berths under its HK$4 bill (US$513 mill) Phase III development, while Chiwan Container Terminal (CCT), which operates five berths, is building four more.

With container throughput growing at over 30 per cent a year in the Pearl River Delta, terminals in western Shenzhen are continuing to develop new facilities
date bigger ships. Berth four came on stream in January. At CCT, Berth 13 (the terminals sixth) will become operational in the first quarter of next year. The other three new berths (designated 5, 6 and 7) will be located about half a kilometre away at Mawan, separated by a power station. Berths five and six will become operational in 2005 and berth seven in 2006. Meanwhile at Yantian International Container Ter minals (YICT), located in eastern Shenzhen, eight berths are operational and the last of the four berths built under Phase III will come on stream by the end of this year, according to general manager Kenneth Tse.

Dredging underway
SCT general manager Cheyenne Yu said that dredging for three berths has begun and berth five is expected to become operational in the first quarter of 2005. Berths six, seven and eight will follow in 2006 and 2007 and berth nine in 2008. If business remains strong, we will speed up the process,Yu said. He said the approach channel has been dredged to -14.5m, enabling berths three and four to handle 8,000 TEU ships. When needed, quayside depth will be increased to -17m to accommo-

Short of space
Erik Bogh Christensen, general manager of Modern Terminals (MTL) of Hong Kong, which has minority stakes in SCT and CCT, said that with cargo volumes growing by 3 mill TEU a year in south China, western Shenzhen terminals will run out of space by 2008. That is when the first berth of a new terminal MTL is preparing to build at nearby Dachan Bay is expected to become operational. MTL will take a 65 per cent equity stake in Phase I of the project, with the Shenzhen municipal

authorities taking 35 per cent. Christensen said that Beijings approval for the five-ber th Dachan Bay Phase I, with an annual handling capacity of 2.5 mill TEU, is likely to be received by the end of this year, but site planning and preliminary dredging work has already started.The terminal, to be developed in four phases, will have 10-12 berths with an annual handling capacity of 6-8 mill TEU by 2020. However, YICT will not suffer capacity constraints. Being located on a greenfield site, it can be easily expanded to include up to 25 berths.

Throughput at SCT is expected to top 2.3 mill TEU this year YICT, minority owned and managed by Hutchison Port Holdings and which accounts for about half of Shenzhens throughput, saw volumes rise 19.5 per cent to 2.76 mill in the first half of this year. Full-year throughput is expected to top 6.4 mill TEU. Volumes at CCT rose 63.8 per cent to 1.17 mill TEU in the same period. According to senior commercial manager Terry Leung, fullyear traffic will top 2.6 mill TEUs and may reach 3 mill TEU.The terminal attracted 10 new services in the first half, increasing the number of weekly services to 38. Throughput at SCT rose 58 per cent to over 1 mill TEU in the January-June 2004 period, with the full-year figure projected at more than 2.3 mill TEU, 500,000 TEU higher than last year. SCT has gained 17 new services this year, including two by Orient Overseas Container Line (OOCL) of Hong Kong, increasing the number of weekly services to 32. Around 1 mill TEU of Shenzhens throughput is accounted for by smaller facilities, which have been licenced as multi-purpose terminals but concentrate on handling the coastal container trade, which is more profitable. Much of Shenzhens growth is coming at the expense of the terminals at Hong Kongs Kwai Chung container port because it costs manufacturers in Chinas Pearl River Delta US$200 more per TEU - mainly in trucking and waiting time at the border - to ship through Hong Kong. That means consignees saved around US$1.2 bill in the first half year alone by choosing to ship their goods through Shenzhen terminals. The much-touted efficiency of Hong Kong terminals no longer justifies the extra cost, according to a shipping company executive. Efficiency is about the same in Shenzhen and Hong Kong now. Crane moves per hour are very comparable, he said.

Ever upwards
Throughput at Shenzhen, Chinas second-largest container port behind Shanghai and the worlds number four, rose 31.6 per cent to 6.05 mill TEU in the first half of 2004, indicating the full year figure will top 13 mill TEU as volumes are usually higher in the second half because of Christmas shipments.

14 new container berths are under development in western Shenzhen, including five at SCT, four at CCT and five at the planned Dachan Bay development

Nansha shapes up
Four multi-purpose berths will become operational in September at Nansha in the Pearl River Delta and plans are being drawn up to build four container berths at a cost ofYuan2.6 bill (US$314 mill) to handle around 2 mill TEU by 2010 (see WorldCargo News April 2004, p11). Although Minister of Communications Zhang Chunxian warned in February about overinvestment in ports in south China, authorities in Guangzhou, capital of Guangdong province, are intent on pushing ahead. Xiong Wenhui, directorgeneral of the Nansha Development Zone Economic Development Bureau, said Nansha port would not threaten Hong Kongs position as the worlds No 1 container port. Hong Kong will always be the leading international shipping centre in the Pearl River Delta. Shenzhen, Guangzhou and other ports will be complementary, he said, adding that the fast growth in foreign and domestic trade in the region meant existing facilities would be exhausted soon. By 2005, the added value of the logistics industry in Guangdong will reach Yuan270 bill, making up 15.6 per cent of our economy. The industry will grow 11 per cent on average in the next 10 years, said Xiong.As the world manufacturing base 32 emerges in the Pearl River Delta, the logistics industry will provide even more opportunities. Japanese carmaker Toyota has invested Yuan2.2 bill in Nansha and Japans JFE Steel has formed a joint venture with Guangzhou Iron and Steel Enterprise. Work has started on a 400,000 tonne steel plate plant, with a Yuan1.4 bill investment.These industries need a lot of oil, coal, iron ore and other raw materials. Nansha port will handle their needs, Xiong said. According to Guangdong governor Huang Huahua, the plans are to expand ports despite the province being positioned as the manufacturing hub with Hong Kong as its services centre. Guangdong exports through Hong Kong increased by US$40 bill to US$205.4 bill last year, Huang said, underlining the need for the province to develop its own container port business.The provinces container throughput grew by 30 per cent last year, compared to Hong Kongs growth rate of just 6.8 per cent. According to Development and Reform Commission director-general Chen Shanru, Guangdongs container throughput is expected to double to 40.5 mill TEU by 2010.Can all these [boxes] go through Hong Kong? I dont think there is enough land, he said. July 2004

CHINA: PORT DEVELOPMENT

WorldCargo news
pany now has two berths that are operated under a joint arrangement giving a combined capacity of around 2 mill TEU/year. A further five berths are being built in Shekous Phase III development. At Chiwan, CMHI has converted a berth previously earmarked for domestic containers, berth 12, for international container services. Although a relatively small berth designed to handle 120,000 TEU/year from up to 30,000 dwt vessels, berth 12 has 89,500 m2 of valuable yard space behind it. Berth 13 is now under construction (see page32). Another terminal in the western Shenzhen area is planned at Dachan Bay and although CMHI does not have a direct stake in this development, it has an interest through its stake in the majority shareholder, Modern Terminals Ltd.

China Merchants takes the credit

Last month, China Merchants Holdings (International) Company Ltd (CMHI) signed a 3-year loan agreement that allows it to access up to HK$1.2 bill in development funding from seven banks. Last year, the company announced a new strategy of mass investments in ports and chairman Dr Fu Yuning said the credit facility would be used to sustain and expand CMHIs developments in ports such as Shenzhen, Tianjin, Ningbo, Qingdao, and Zhangzhou and related marine and logistics services so as to realise our goal of being a leading ports operator in China and Hong Kong. CHMI plans to add approximately 10 berths a year to its facilities over the next three years. By 2006 it expects to have a total of 80 berths across its terminals and to have doubled its throughput from close to 10 mill TEU last year to 20 mill TEU by 2008. The company claims to be unique in China as the only public port operator that not only owns, but also operates ports and terminals across the Pearl River Delta,Yangtze River Delta and the Bohai Economic Rim. Major development projects are currently underway at each location. In the Yangtze area, CMHI is investing in the fifth phase expansion at the Beilun port, known as the Ningbo Daxie Island International Container Terminal.This fourberth development will add an additional 2 mill TEU/year to Ningbos capacity when completed in 2007 at a cost of US$430 mill. CMHI has a 45 per cent stake and, importantly, management rights, while 45 per cent is held by the port authority and the remainder by Beijingbased China International Trust and Investment Corp. CMHI spokesman Xueqian Park reports that construction is moving very fast and the first two berths are expected to be in operation by the beginning of 2005. In the Bohai Rim CMHI has agreed to invest up to US$500 mill in Qingdao Qianwan Modern International Logistics Park. The company has a 90.1 per cent share in this development, which includes seven berths and a logistics park. Two berths will be multi-purpose while the others will be dedicated container berths. Final completion is scheduled for 2010. At Tianjin, CMHI is one of the companies involved in the Tianjin Five Continents International Container Terminal Co Ltd., a joint venture formed last December by Cosco Ports (Tianjin), CMIT (Tianjin), China Shipping Terminal Development Co, CSXWT New World (Tianjin), and Tianjin Port (Group) Co to build manage and operate the Tianjin Dongtudi Container Terminal. Tianjin Dongtudi will have four berths over 1,202m of quay with a depth of 16m and a total area of roughly 550,000 m2. Capacity is expected to be 1.5 mill TEU per year. In the Pearl River Delta, CMHI is focusing on western Shenzhen where it currently has stakes in terminals at Shekou (Shekou Container Terminals) and Chiwan (Chiwan Container Terminal). At Shekou CMHI is a shareholder in two separate companies, SCT and SCT2. Each com-

Share issue for CMHI

Minority shareholders of Shenzhens Shekou Container Terminals (SCT) are baffled by majority shareholder China Merchants Holdings (International) Company (CMHI)s plans to assume 100 per cent ownership of the planned Phase III development. Observers say CMHI wants full control of Phase III in order to maximise profits from surging throughput, which rose 58 per cent to just over 1 mill TEU in the first half of this year at SCTs four berths built under Phases I and II.The five-berth Phase III would more than double the handling capacity of SCT, which is on course to handle more than 2.3 mill TEU this year. But SCT general manager Cheyenne Yu told WorldCargo News, China Merchants directors feel that with 100 per cent ownership, the approval process for Phase III from the central government could be expedited.The shareholding will certainly be diluted after discussions with minority shareholders later. Sources said the issue is complicating talks aimed at simplifying the ownership of SCT Phases I and II that will see CMHI, an offshoot of Chinas Ministry of Communications, taking 51 per cent and the other shareholders 49 per cent. At present CMI holds 32.5 per cent of Phase I and Cosco Pacific 17.5 per cent, with P&O Ports, Swire Pacific and Modern Terminals (MTL) holding 50 per cent between them. In Phase II, CMHI has 51 per cent, with P&O, MTL and Swire 49 per cent. The shareholders concern has come at a time when Phase III is slipping behind schedule. Construction of the first berth, which is due to become operational in the first quarter of next year, is already late and over budget. Construction industry sources said this is partly the result of design changes recommended by CMHIs inhouse project management team, after the company, alarmed at last years surge in steel prices, decided to switch from steel to reinforced concrete piling to cut costs. They said the cost and time involved in changing the design outweighed any cost benefit.By the time the changes were agreed, steel prices had started coming down, said one source. July 2004 33

WorldCargo news

CHINA: PORT DEVELOPMENT

Shanghai to outline port stake strategy

he Shanghai municipal government will soon re veal the extent of private participation in the four-berth Phase II of the new Yangshan deepwater port, according to a senior official. Private companies can participate in Phase II, which will be operational in 2006, said Zhang Huimin, executive deputy general director of Shanghai Deepwater Port Construction Co, the munici-

International container terminal operators are queuing up to get a slice of the action at Shanghais new Yangshan deepwater port
pal body overseeing the five-berth first phase of the project. Details will be ready by the year end. transport at the Ministry of Communications, foreign companies interested in developing and operating Yangshan Phase II will be required to form joint ventures with local companies.There is no strict regulation concerning the percentage of foreign funds allowed. The companies will have to form joint ventures and the percentage of ownership will be determined by the Shanghai municipal government, he said. A number of companies, including Hutchison Port Holdings (HPH), Modern Terminals (MTL) and Orient Overseas Container Line (OOCL) of Hong Kong, have already been in talks with the Shanghai authorities about taking a stake in the Yangshan development, the officials said. MTL has teamed up with China Shipping Terminal Development Co, an affiliate of China Shipping Container Line, to bid for a slice of the project. Others to have expressed interest include China Ocean Shipping Co (Cosco), Singapores PSA Corp, the UKs P&O Ports and APM Terminals of Denmark. HPH, the worlds largest port operator, would be interested if given management control of the terminal. Gu Gang, director of Shanghai Tongsheng Investment Group, which is managing the construction of the port, said the Phase II project would be open to all potential investors. The discussions have been going on for a while and we have no preference, he said. The new port, which will eventually have 52 berths and cost as much as US$18 bill to develop, is being built on Yangshan islands in the middle of Hangzhou Bay and will be connected to Shanghai by a 31 km bridge.The Shanghai municipal government has decided to let its listed company, Shanghai Port Container Co, operate Phase I, which is slated for completion next year. Phase II will cost considerably less than the Yuan14.3 bill (US$1.73 bill) being invested in the five berths and the bridge connecting the port to the mainland in Phase I, said Zhang.

Joint ventures
According to Zhang Guof a, deputy director-general of water

MTL is among a number of foreign operators looking to participate in Phase II of the Yangshan project, but it has also kept its options open by taking a 70 per cent stake in a new container terminal at Taicang handled 6.3 mill TEU in the first five months of this year, up 30 per cent year-on-year. A port official said the port was on track to reach its target of 13.5 mill TEU for the full year, up from 11.28 mill TEU last year, which was 34 per cent more than its designed capacity According to the Ministry of Commerce, Shanghais exports rose 54.5 per cent in the first half of this year to US$33.7 bill. Last year, the city and its two major catchment areas - Jiangsu and Zhejiang provinces - exported goods worth US$148.18 bill. Short term throughput growth may be hampered, however, by a shortage of handling capacity at Shanghai Container Terminals (SCT). New berths at Waigaoqiao Phase V in Pudong are not slated to come on stream until December this year. The latter will include two multi-purpose berths and two container berths with annual container handling capacity of 700,000 TEU. HPH, a major shareholder in Shanghai Pudong International Container Terminals (SPICT), which operates Phase 1 of the Waigaoqiao development, is likely to sign a deal next month to take a stake in Waigaoqiao Phase V, an official from the citys municipal port administration said. HPH has been in talks with Shanghai Port Container Co and its parent Shanghai International Port Group about operating the new facility. According to local press reports, the three companies have already signed a framework agreement to operate Phase V as

Number three
Supported by a strong manufacturing base in the Yangtze River Delta, Shanghai is the worlds third-busiest container port. It

Dalian Phase II gets underway

The Dalian Port Author ity (DPA) has reached an agreement to develop a second phase at Dayao Bay in a joint venture with PSA Corp, APM Terminals and Cosco Pacific. Phase I of Dayao Bay is operated by Dalian Container Terminal (DCT), a joint venture between the DPA (51 per cent), PSA Corp (44.1 per cent) and Maersk (4 per cent).The original agreement did not cover further phases and a new joint venture company has now been formed for Phase II. Dalian Port Group holds 35 per cent of the shares in the new company, PSA Corp 25 per cent and APM Terminals and Cosco Pacific 20 per cent each. The agreement is somewhat surprising as the DPA has previously said it was looking to foster competing stevedores at the port. Last year, it signed a Letter of Intent with Hong Kong terminal operator Modern Terminals Ltd (MTL) to develop a future phase at Dalian. Earlier this year, MTL reported that a development team is now on the ground in Dalian to follow up on the Letter of Intent signed with Dalian Port Authority at the end of last year. However, a third phase is planned for Dayao Bay and it may well be that MTL will play a role in that development. DCT currently has six berths and handled 1.67 mill TEU last year. Phase II will add another six berths, the first two of which are scheduled to be completed at the end of 2005 with the remaining four the following year, taking Dalians total capacity to 5 mill TEU/year. Four cranes with a 56m outreach are understood to have been ordered from ZPMC and Cosmos has announced that it will be supplying the terminal operating system.The total cost of Phase II is reported to be US$600 mill. Other facilities currently under construction at Dalian include a new two-berth automobile terminal in which NYK and Cosco Pacific both have a 30 per cent stake. The terminal is designed to handle 600,000 vehicles a year and is scheduled to be operational in 2006. Looking further ahead the port authority plans to relocate the Dalian Dadang domestic container terminal from the old inner harbour to Dayao Bay by 2008. The city of Dalian plans to redevelop the inner harbour into a tourist area and much of the old heavy industry, including Dalian Crane Works, has already been relocated from the city to outlying areas. July 2004

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CHINA: PORT DEVELOPMENT

a joint venture. Cosco Pacific, which said earlier this year it would take a 20 per cent stake in the project, is now said to be out of the deal. Ningbo currently has seven berths servicing more than 105 container routes 40 of which are long-haul.Two more will become operational this year and China Merchants Holdings four-berth project on Daxie Island - known as Phase V will increase annual capacity by another 2 mill TEU by 2006 (see page 33). ture, said NPG spokesman ZhangYiyao. According to the NPG, the port is expected to handle more than 200 mill tons of cargo, with container volumes reaching 3.55 mill TEU this year. Upon completion of the Ningbo Cross-Sea Bridge in 2008, the port will be a two-hour drive from Shanghai, Zhang added. The 54 km bridge with six lanes across the Qiantang River is expected to be the worlds longest and cost Yuan12 bill (US$1.45 bill), 70 per cent of which will come from local companies and the rest provided by the provincial government. The br idge is part of Ningbos Yuan100 bill five-year investment programme in infrastructure facilities that began in 2001 and includes building a 250,000 ton oil terminal and expansion of the citys airport. The bridge will also link Ningbo with Suzhou in neighbouring Jiangsu province. Fierce competition between Shanghai and Ningbo for containerised cargo seems inevitable, though Ningbo officials say the city just wants to help Shanghais development as an international shipping centre. We plan to build the port into an outer deepwater port for the Shanghai area, Zhang said. Although planning officials estimate that Ningbos annual container throughput will surge to 8 mill TEU by 2010, analysts say existing projects will satisfy demand. Ningbos close proximity to Shanghai suggests that competition for container traffic is likely to be fierce

WorldCargo news

MTL into Taicang

While keen to participate in theYangshan project, MTL appears to have covered all the bases by signing an agreement with the Suzhou government to participate in the development of a new container terminal at Taicang in Jiangsu Province. Taicang is located close to Shanghai and is just 50 miles from the mouth of the Yangtze. MTL has taken a 70 per cent stake in the second phase development of the port, where four berths with a total length of 1000m are under construction at a total cost of US$128 mill. The aim is to have the first berth operational in the first half of next year. Taicang Phase I (Taicang International Container Terminal), in which MTL has a 51 per cent stake, also has four berths and 1000m of quay that are currently equipped with two ship-toshore container cranes and four multipurpose jib cranes.The main cargoes include bulk timber imports from Russia and Africa and other general cargo. Phase I will continue to handle both container and general cargo while Phase II, to be known as Suzhou Modern Terminals, will be developed as a dedicated container terminal. Seven quay cranes and 21 RTGs are planned for Phase II and procurement contracts are currently under negotiation. The first three cranes and nine RTGs are required to be delivered next year, followed by two ship-to-shore cranes and six RTGs in each of 2006 and 2007. When completed Phase II will have a capacity of 1.5 mill TEU/year. Despite its close proximity to Shanghai, the Suzhou government has determined to reduce its reliance on the Shanghai terminals and boost container capacity at Taicang.Throughput last year was round 50,000 TEU and MTL expects that to increase to 150,000 TEU this year. The longer term question, however, is how Taicang will be affected by the deepwater port at Yangshan as, like the current Shanghai terminals, Taicang is constrained by the depth in the Yangtze. However, Taicang marketing manager Serco Zhou says that Yangshan is too far away from Shanghai to affect Taicang and the additional cost of transportation, which will include a toll for the bridge to the terminals, is a major disadvantage.

Rising throughput
Situated on the East China Sea in Zhejiang province to the south of the booming Yangtze River Delta, Ningbo handled 2.76 mill TEU last year, up 48.6 per cent, and 1.46 mill TEUs in the first five months of this year. Ningbo port is now in its highspeed development period and will enjoy a brighter future due to its rich natural resources and advanced infrastruc-

Evergreen for Ningbo?

Also in relatively close proximity to Shanghai, Taiwans Evergreen Marine Corp is understood to have expressed interest in operating a two-berth terminal at the port of Ningbo through a joint venture between its Italian subsidiary Lloyd Triestino (LT) and Ningbo Port Group (NPG), the port authority. Officials at LT and NPG declined to comment, but port industry sources said preliminary discussions have been held to set up a US$250 mill joint venture, with each party holding equal shares. The terminal will be developed at Phase IV of the Beilun port area, which will eventually have nine berths, built at a cost of US$1.2 bill, with a combined handling capacity of 5 mill TEU/year. Evergreen, the worlds fourth largest container carrier, also operates terminals at Taichung and Kaohsiung in Taiwan, Colon in Panama and Taranto in Italy. Last month, NPG signed a similar agreement with Mediterranean Shipping Company (MSC) of Switzerland to develop and operate the two-berth Chuashan International Container Terminal at Phase IV of Beilun at a cost of US$250 mill, which will become operational in 2005. MSC operates three long-haul services from Ningbo and handled 150,000 TEU at the port last year, 30,000 TEU of which were transhipment boxes. HPH already operates the three-berth Ningbo Beilun International Container Terminals (NBCT) in a joint venture with the NPG. HPH has a 49 per cent stake and NPG holds 51 per cent of NBCT, which was built at a cost of US$300 mill in Phase II. Chinas fifth largest container port, July 2004 35