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WorldCargo news Chinese stowaways cause US concern More questions about port and container security have been raised in the US after 22 Chinese stowaways were discovered in Seattle this month. The 18 men and four women, all in their 20s and 30s, let themselves out of a 40ft container that had been used to smuggle them from China, US officials said. The stowaways seemed in good physical condition after two weeks in the container, said Michael Milne, a spokesman for US Customs and Border Protection. Water bottles, food, blankets and toilet facilities were found in the container, which was loaded on a China Shipping Container Line ship (CSCL) in Shanghai, Milne said. Port security guards spotted the group, believed to be smuggled by an organised human trafficking ring, at 01.00h on 5 April. Some were found in the terminal and the rest were spotted trying to get through a gate. The stowaways had prized the container open and lowered themselves about 7ft to the ground, Milne added. CSCL officials in Hong Kong declined to comment on the case. The container, the second from the bottom in a stack of four, had been flagged for special examination, but that had not been carried out before the group was caught, Milne said. US Senator Patty Murray said the incident highlighted the need for greater port security. “This appears to have been a case of human smuggling, but that container could have been filled with anything from a dirty bomb to a cell of terrorists.” There was a flurry of people smuggling from China along the NAWC range in 2000 and 2001. Almost all of those caught were deported, but there were no wider security issues then. ICTSI weighs up safety Philippine port operator International Container Terminal Services Inc (ICTSI) is now weighing all full container load (FCL) export containers at its flagship Manila International Container Terminal (MICT) to ensure the safety of cargo in the terminal and at sea. All FCL export containers pass through the new MICT Central Gate, where four lanes of 100t capacity weighing bridges have been installed. “The weighing of containers is a value-added service to MICT users as it assures the safety of cargo in the container,” said MICT general manager Francis Andrews.“We have to weigh containers as we cannot risk the safety of cargo with bigger and fast moving vessels.” The exercise also helps terminal planners to accurately plan the stacking of containers in the yard and stowage on the vessel, he said. Cargo pilferage is also detected when the actual weight is found to be less than the declared weight of the container. Shippers and consignees are assured that port authorities and customs offices in other countries will not question the cargo as the actual weight is declared in the Bill of Lading, Andrews said. Overweight containers are not loaded onto the vessel, and remain at MICT until they are made fully compliant with safety standards. ● ICTSI’s foreign terminals did remarkably well last year with BCT Gdynia lifting its throughput by 6.2% to 395,757 TEU and TSSA Suape by 25.9% to 179,473 TEU. Revenues from these two concessions were up 14% and 34%, respectively. Even Madagascar International Container Terminal Ltd, (Taomasina) that commenced operations only last October turned in the equivalent of PhP184.1M in revenues from its throughput of 18,874 TEU. All told, ICTSI’s overseas concessions contributed 36.8% of its consolidated revenues of PhP10.44B nd 34.1% of its consolidated income of PhP1.34B. PORT NEWS Fraser Surrey Docks in British Columbia has handled its first vessel with an 11.5m draft after a dredging project was completed in March. Later that month SANKO REJOICE delivered 38,237t of steel to the port’s general cargo terminal, the first time a fully loaded vessel carrying more than 30,000t of steel had berthed at the port for a complete discharge.The steel was a mixture of structural beams, plate, coil and pipe destined for various projects in BC and Alberta.“Fraser Surrey Docks is a vital terminal in the Pacific gateway for breakbulk cargoes such as this steel delivery,” said Gino Crisanti, the port’s president and CEO. “Our facilities, location and skilled workforce enable us to operate a true general cargo terminal that is efficient at handling both breakbulk cargo and containerised goods” Tuticorin expansion plan Tuticorin port in south India has unveiled a major expansion plan which involves an investment of R40B over the next few years, the port’s chairman N K Raghupathy said.The port plans to invest R8.8B in the first phase to increase the draft from 10.7m to 12.5m. The first phase, as previously reported in WorldCargo News, (September 2005, p9) includes setting up a second container terminal. From the original list of bidders, five have been short-listed - PSA and SICAL that operate the port’s first container terminal as a joint venture - Chettinad Logistics, Larsen & Toubro and DP World. Raghupathy said their names had been forwarded to the shipping ministry for approval ahead of inviting financial and technical bids. The first phase expansion is expected to be completed by 2008 while the second phase is expected to be completed by 2012.The plan for the second phase includes expanding the outer harbour and increasing the depth to 14.5m, construction of breakwaters and lengthening the approach channel. Converting berth no. 8 into a container terminal is expected to cost R1.5B. It will have a capacity to handle 450,000 TEU. The existing terminal at Tuticorin has a quay length of of just 340m and this limits the number of vessels it can receive.The port handled 17.1 mt of cargo in the fiscal year ended March 2006 against 15.8 mt in fiscal 2004-5. ● The deadline for Hutchison’s much delayed pitch for Mumbai’s offshore terminal has now been postponed for a sixth time to 10 May. Chennai Port Trust has also postponed the deadline for submitting financial bids for a second container terminal to 10 May. Other bidders are increasingly fed up that the goalposts are being moved all the time because Hutchison still does not have security clearance to bid. Although Hutchison has previously been given permission to bid for port projects in India, these two developments are particularly sensitive because, as previously reported, they are located near a naval base and Hutchison Whampoa’s close links with the Chinese government are a cause of concern. India and China fought a border war in 1962. ● The Indian government has approved a plan to import seven fixed and mobile scanners for ports after a scanner installed at Jawaharlal Nehru port near Mumbai proved its utility.A fixed scanner will be installed at Mumbai and one fixed and one mobile scanner each will be installed at Chennai and Tuticorin ports in the south and Kandla in the west. Privatisation protests Christchurch City Holding Limited’s (CCHL) thwarted attempt to take over Lyttelton Port Company (LPC) and sell a majority stake to a new company led by Hutchison Port Holdings (HPH) has sparked a debate on port privatisation in NZ. A group called “Keep Our Port Public” (KOPP) was set up to oppose any sale of LPC’s assets in general. HPH pulled out of its deal with CCHL (last month’s WorldCargo News, p6), and KOPP wants to “return the port to full public ownership and control.” Unions are warning that Lyttelton is just the beginning and more port companies will come under pressure to sell to overseas investors because NZ has too many ports vying for container business. At a recent meeting five Christchurch MPs blamed the problem on “the socalled shipping reforms of the 1990s” that established a competitive environment. In a joint statement they said the current pricing regime was unsustain- able and some ports would fold unless competition was reduced. Some ports are making very little return on assets.The Port of Timaru handled just over 50,000 TEU in the 2005 financial year and made an after tax profit of under NZ$1M. On assets of over $45M this represents a dismal return. Port Otago Ltd spoiled CCHL’s plan by purchasing 15% of the shares in LPC and it wants the two ports to cooperate. Chairman John Gilks said collaboration and alignment between ports is in the best interests of port companies, shareholders and local communities and that it has a strategy for how cooperation would work. CCHL is still smarting over Otago’s actions but have said they will work with it if they fail to come to another arrangement with HPH. Gilks has referred to each port specialising “in the services that they are best placed to provide.” A sticking point is bound to be containers as both ports have dedicated terminals. 6 April 2006
PORT NEWS North Harbor on the block The Philippine Ports Authority (PPA) is finalising the terms of reference for the privatisation and upgrading of the Manila North Harbor - the country’s main domestic terminal and the first major government port facility to be put up for sale in almost 20 years (MICT was privatised in 1988). It is expected that the bidding process could start by May or June, after the draft terms have been approved by the National Economic and Development Authority's Investment Coordination Committee. Although it would not go into any financial details, the PPA has confirmed the general plan to divide the North Harbor into three blocks consisting of two cargo terminals and one passenger terminal in lieu of the earlier three cargo/ one passenger terminal scheme. The 52.5-hectare North Harbor has six finger piers and five wharves with a total quay length of 5.2 kms. In 2004 it handled 14.45 mt of domestic cargoes and 2.54M passengers - down by 7% and 24.6% respectively from the 2003 levels. PPA officials have suggested that foreign companies may join the race in joint venture with local contenders.They have ruled out, however, participation by shipping lines or their nominees, in order to ensure that the privatised facilities would be accessible to all port users. A provision has also been included in the terms of reference that would minimise the displacement of PPA.The ports agency has been coordinating with the Philippine Chamber of Commerce and Industry and other private groups and has adopted some of their suggestions.This is expected to prevent the kind of protests that blocked attempts in the 1990s to privatise the North Harbor. Brunswick, NC steps out North Carolina State Ports Authority (NCSPA) has announced that it is to seek bids from individual firms or consortia to manage the development process of the proposed North Carolina International Port (NCIP) on Cape Fear River in Brunswick County. As previously reported (WorldCargo News, January 2006, p22), this is a 600- acre undeveloped industrial site, nine miles from the Atlantic Ocean, and adjacent to the Military Ocean Terminal Sunny Point and Progress Energy’s Brunswick Nuclear Plant. Conceptual plans for NCIP envision a major international container terminal with a capacity for 1.5M TEU/year. It would provide 4000ft of linear berth and an industrial park on site for distribution centers or related operations. “We plan to launch the environmental impact study process as soon as possible to give the public opportunities for input at the earliest possible stage,” said NCSPA’s CEO Tom Eagar.“In the meantime, we have been actively seeking input from elected officials and community leaders around the area.” The NCSPA has discussed dredging the Cape Fear River navigational channel to 50ft with the Corps of Engineers. The Corps has agreed to Congressional resolution language to authorise a “reconnaissance study,” the prerequisite to a fea- WorldCargo news NCSPA is also investing in Wilmington sibility study that the Corps must perform for the dredging to be authorised.” Financing to purchase the property for US$30M from Pfizer was obtained through port revenue bonds. NCSPA will seek a private sector partner to invest in the development of the port facility. www.gottwald.com Brunei seeks backers The government of Brunei Darussalam is offering to put up 70% of the construction cost in a bid to find a backer for a new container terminal. Brunei has long been mooted as a location for a major transhipment hub and the government has already given the PSA a concession to operate the Muara container terminal. However, the PSA obviously has no intention of developing another transhipment hub so close to its own facilities in Singapore and Muara is handling around 110,000 TEU/year of mostly local cargo. Some time ago the Brunei Economic Development Board (BEDA) engaged Halcrow Group to prepare a feasibility study for a new terminal on Pulau Mera Besar, an island opposite the existing Muara terminal. BEDA senior business analyst Desmond Lim says the government views a transhipment terminal as a key plank in Brunei’s economic development and as well as funding 70% of the development cost is willing to give the operator full ownership of the facility. The final plan is open to negotiation but the concept is to develop a new deep water container terminal on Pulau Muara Besar linked by a new bridge to the mainland. A quay line of 1.3 km is envisaged initially, but this could be extended to up to 5 km. Construction of the first phase including dredging to a depth of 16m is estimated to cost US$450M. Lim says the terminal needs to attract 1.2-1.5M TEU/year to break even and BEDA is ideally looking for a shipping line to invest in the project. It is, however, open to proposals from any investor including the PSA. As well as location on the main east-west route, a major attraction, says Lim, is the low cost of development as the site is just two nautical miles away from water depth of 20m. BEDA is also trying to attract other business to the island including liquid gas industries, an industrial park and an aluminum smelter. New Freyer box terminal Freyer GmbH, which up to now has concentrated on conventional cargo handling in the German port sector, is set to open its new container terminal in Germersheim next month, equipped with a barge-to-shore gantry crane, a jib crane with heavy lift capacity and reach stackers for ground work. An RMG for rail/ road transfer work is also available. The terminal area can be expanded to 5 hectares and the berth extended to 400m. In addition to the trimodal container handling and container storage, Freyer also offers CFS and on-carriage by road using its own road fleet. 30.5. - 1.6.2006 The New Generation 5 – Carrara Knows Why Hall 12, Stand C04 With the new Crane Generation 5 from Gottwald Port Technology, port handling is advancing in impressive dimensions. In the Port of Carrara, Italy, for example. Recently, two G HMK 8710 cranes were put into operation. With a lifting capacity of 200 tonnes, they are the largest Mobile Harbour Cranes in the world. Naturally with diesel-electric drive. Customised for professional handling of marble, containers and heavy loads. An example of customer-oriented, efficient solutions. An example taken from the many different variants of the new Generation 5 from Gottwald. For terminals of every size, for all ship sizes and for all types of handling. Gottwald Port Technology GmbH • Postfach 18 03 43 • 40570 Düsseldorf, Germany Phone: +49 211 7102-0 • Fax: +49 211 7102-651 • e-mail: info@gottwald.com • www.gottwald.com Porto di Carrara SPA • Viale da Verrazzano • Varco Portuale di Levante • 54036 Carrara (MS), Italy Phone: +39 0585 7844 30 • Fax: +39 0585 7844 13 • www.portodicarrara.it Generation 5 – You Name it, We Crane it April 2006 7
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