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WorldCargonewsPORT NEWSHong Kong does notneed more terminalsInstead of building ContainerTerminal 10 (CT10), Hong Kongcould save billions of dollars byincreasing productivity at existingfacilities, according to a reportby McKinsey & Co.Commissioned by the BetterHong Kong Foundation, thereport says further terminal constructionshould wait until constraintson the flow of cargo fromfactories in southern China toterminals at Kwai Chung containerport have been eased.The report - StrengtheningHong Kong’s Port and Trade Sector- recommends that capacity expansionshould be postponedunless and until Hong Kong caneliminate its structural disadvantagesvis-à-vis southern China.Instead of building a fourberthCT10, which is expectedto cost HK$8 bill (US$1.03 bill),McKinsey recommends thatHK$2.5 bill be spent to expandthe Kwai Chung quayline andback up land and enhance the terminaloperators’ information technologycapabilities.It said productivity improvementscould create 5.5 mill TEU/year of handling capacity, morethan the 4 mill TEU that wouldbe added by CT10. “In otherwords, for a quarter of the cost, asimilar gain in capacity can beachieved through productivityimprovements, freeing up capitalfor investment in other projects,”the report says.The McKinsey report comesahead of the Hong Kong PortMaster Plan 2020, being preparedfor the government by consultantsGHK, which will be released earlynext year.Critics says the high cost ofmoving containers through HongKong because of the high terminalhandling charges (THCs) at KwaiChung is diverting an increasingnumber of boxes to Shenzhen terminalsin south China, but theMcKinsey report dismisses that asone of several “myths.”“Lower terminal charges arenot the solution because they arenot the main reason for thehigher costs of shipping out ofHong Kong,” it says.“Instead, structural factors,such as inefficiencies in crossingthe border and higher truckingcosts, drive the cost differential.”THCs, the report says, makeup about 8 per cent of the totaltransportation cost of moving acontainer from South Chinathrough Kwai Chung, downfrom 10 per cent six years ago.McKinsey suggests HongKong can recover its marketshare if it addresses structural issues,such as its high inlandtrucking costs; exporters pay upto US$260 more per TEU toship through Hong Kong thanvia Shekou or Chiwan terminalsin western Shenzhen.Furthermore, due to the customsinefficiencies at bordercrossings, Hong Kong truckerscan make only one trip a day,instead of two or three managedby their counterparts deliveringboxes to Shenzhen terminals.VisakhaadditionsVisakha Container Terminal(VCT) at Visakhapatnam port insouth India, which started operationsin June this year, is planningto import more handling equipmentto allow larger vessels to behandled.The private terminal, operatedby a joint venture formed byUnited Liner Agencies of Indiaand Dubai Ports Authority (DPA)plans to order two ship-to-shorecranes and four RTGs from anunnamed Japanese manufacturerto add to the two quay cranes andtwo RTGs already in operation.The new quay cranes will allowthe terminal to handle vesselswith a capacity of up to 4,500 TEU.At present it is limited to vesselswith a capacity of 3,000 TEUs.The acquisition of new handlingequipment has become urgentbecause more importers innorthern India are using Visakhabecause of congestion at JawaharlalNehru Port.Tollerort expansionHHLA’s Tollerort Container Terminal(TCT) has been enlarged by4 hectares and storage capacity hasbeen increased by 950 TEU. Thequay wall has also been extendedby 45m. The changes will reportedlyprovide for an 80,000 TEUincrease in annual throughput.TCT has experienced doubledigitgrowth in recent years andhandled 623,000 TEU in 2002,with a further increase expected thisyear. The terminal is equipped withseven cranes, including five post-Panamax units (49.5m outreach).It is also planned to switchfrom 1 over 2 to 1 over 3 highHHLA is keen to continue expansionat its Tollerort facilitystraddle carriers. As previously reported,HHLA is already introducing4-high straddle carriers atBurchardkai and is currently assessingboth Kalmar e-drive andNoell ESW designs.It is planned to double TCT’ssize (currently 30.8 hectares) by2008, by filling in the adjacentKohlenschiffhafen basin. The 920mquay wall will be extended to1,525m, with up to 12 cranes anda draft of 15.6m alongside. Capacitywill reach 1.9 mill TEU/year.JNP moves goalpostsJawaharlal Nehru Port (JNP) onIndia’s west coast, which has invitedbids for converting an unusedbulk terminal into a containerterminal, has again madesome changes to the terms andconditions of financial offers.When bids were first invited,they were solely on the basis of revenue-sharingwhich meant the bidderwho offers the highest revenueshare would get the contract. Butnearly all the likely bidders suggestedthat the financial bids shouldbe on the basis of minimum guaranteedthroughput (MGT).The JNP Trust liked the ideaand put it forward to the Ministryof Shipping, but the latter wasnot willing to take the responsibilityfor changing the paymentterms and said JNPT should takeits own decision in this regard. Inthe event, the JNPT decided tostay with the original paymentterms (see WorldCargo News October2003, p6).Now there is further change.Although the contract will beawarded to the party offering thehighest share of revenue to JNPT,there will be a penalty clause forbreaching the MGT requirement,but it will not exceed 50 per centof the revenue share.The terminal operator will berequired to handle 130,000 TEUin the first year and 1.3 mill TEUin the seventh year. The operatorwill have to pay 50 per cent ofany revenue gap as a penalty.Among the potential biddersare Maersk Sealand, CSX WorldTer minals, Skanska of Sweden,PSA Corporation, West Port ofMalaysia, SSA Marine, NYK Lineand Marubeni Corporation of Japan,as well as Sea King Infrastructure,Larsen & Toubro and UnitedLiner Agencies of India.Maersk Sealand has brought inContainer Corporation of India(Concor) as a partner for the bidand set up a joint venture companyin which Maersk will be the dominantpartner. The two companiesfeel they are ideally suited for runningthe terminal although forConcor, which has a virtual monopolyon carrying containers byrail in India, it will be its first forayinto running a port terminal.PSA Corporation, which willbid in partnership with ABG HeavyIndustries, is also looking for a thirdcompany to join the consortium.PSA officials are visiting Mumbaito look for a partner who will bewilling to take an equity stake.The terminal is being offeredon a build-operate-transfer basisfor 30 years. The last date for thereceipt of financial bids has beenextended to December 1.Call to halt UK boxport developmentsPortswatch, an umbrella organisationfor eight environmental organisationsin the UK, has calledon the government to halt majornew port developments pendinga detailed investigation of supplyand demand trends and ways ofincreasing throughput capacity atexisting sites.The statement was timed tocoincide with the publication ofa report on UK ports by theHouse of Commons’ TransportSelect Committee. The MPs’ reportfaces two ways in that it callsfor more container port capacitybut also for a national port strategyto provide a framework fordevelopment.This implies that the governmentshould be selective about thefour projects which are of particularconcern: Dibden Bay (ABP);London Gateway (P&O Ports/Shell); Bathside Bay; and FelixstoweSouth (both Hutchison).The Dibden Bay public inquiryhas finished and the Inspector’sreport is with the Secretaryof State for Transport for a decision.The London Gateway publicinquiry has also finished andthe Inspector’s report is expected.Hutchison Ports (UK) Ltd(HPUK) applied for planningconsent for Bathside Bay in Aprilbut no date has been set for thepublic inquiry. It has just appliedfor planning consent to reconfigureFelixstowe South.8December 2003

CONTAINER INDUSTRY NEWSThree more box plants in ChinaSingamas Container Holdings has formallyopened its latest dry freight containermanufacturing facility - Qingdao PacificContainer Co (QPCC) - its eighth containerplant in China and ninth in total.Located in the Huangdao district ofQingdao, close to the Huangdao containerport, the new facility is a joint venture betweenSingamas (55 per cent) and foreigntrade company Hiking Group (45 per cent).Total investment is put at US$13 mill.With a two shift capacity of 100,000TEU/year, QPCC is scheduled to commencefull scale operations on 1 January2004, boosting the Singamas Group’soverall annual capacity to 640,000 TEU.Singamas has also increased its stakein Shunde Shun An Da Pacific ContainerCo (SSPC) to 70 per cent after buyingan additional 10 per cent equity interestfrom SSCMC Transportation CompanyLtd last month at a cost of US$1.8 mill.Capacity at SSCMC is claimed be200,000 TEU/year on three lines.Meanwhile it has emerged that at leasttwo more new dry freight facilities will startoperations in China next year. US-basedChang Sheng Trading, which already hasinterests in Suzhou Asia Container International(SACI) and Lianyungang AsiaContainer International (LACI) has confirmedthat it is setting up a new 100,000TEU/year facility near Taicang port betweenShanghai and Suzhou. To be knownas Taicang Asia Container International(TACI), the new facility is due to open inthe third quarter of next year.Elsewhere, China International MarineContainers (CIMC) already theworld’s largest box builder with a marketshare approaching 50 per cent, will opena new 80,000 TEU/year facility inNingbo in March 2004, boosting its totalannual dry freight capacity to over 1.7mill TEU. The new facility is located inthe Ningbo Export Processing Zone, just8 km from the Port of Ningbo.A major capacity expansion is also reportedto be underway at CIMC’sNantong Smooth Sail facility, which hasbeen closed for two months while thework is undertaken.● Discussions are under way concerningthe relocation of Kwangchow ShipyardContainer Factory (KSCF), China’s oldestcontainer plant, which was forced tohalt container production on September19 due to “environmental reasons.”Carrier Transicold has announced thatproduction of container refrigerationmachinery and compressors at the company’smain plant in Syracuse, New York,will cease with effect from June 2004.According to the company, the move willresult in the loss of around 1200 jobs.Carrier director of marketing DavidDinh confirmed at last month’sIntermodal Transport & Logistics 2003exhibition in Rotterdam that future demandfor reefer machinery will be metby the company’s existing operation inSingapore. A new, larger facility close tothe former SeaCold Technologies plant,which Carrier acquired from Sea Con-WorldCargonewsCarrier on the movetainers in 1993, is being fitted out toaccommodate the increase in productioncapacity that the move entails.“Global container manufacturinghas become Asian-focused, with thebulk of our container refrigeration unitsbeing shipped to box builders in Asia.This move brings us nearer to the hubof container manufacturing,” Dinh said.The company’s future compressorrequirements will be met from existingmanufacturing facilities in Georgiaand China, while a number of sitesin North America are under considerationto take over the production ofCarrier’s genset range.Breakthroughfor DaikinJapanese reefer container machinerymanufacturer Daikin Industries has madea major breakthrough with the securingof an order for 3000 units from MaerskSealand, the first time the Danish operatorhas bought Daikin equipment.TheLXE10E single scroll/R134a units arescheduled for delivery in January.This latest order caps a strong returnto the market for the Japanese manufacturerfollowing the launch of the LXE10Edesign at the end of 2001. According tothe company, sales topped 10,000 unitsin 2002 and around 12,000 units will bedelivered this year.Besides the major Japanese carriers,recent customers have included MISC,PIL, Royal Arctic Lines and P&ONedlloyd. The latter has bought 4500Daikin units this year after taking 2000units on long term lease from Interpoolin 2002.David Marjoram, formerly generalmanager (technical) for P&O Nedlloyd’sInternational Container Management(ICM) division, recently joined Japanesetrading house Itochu, the global sales andmarketing agent for Daikin equipment,as general manager of the refrigerationbusiness unit of Itochu Europe plc, basedin London.DVB targetscontainersEvidence that the container shippingbusiness remains an attractive propositionfor the financial community comes withthe news that DVB Bank AG, the Frankfurt-basedbank, which specialises in transportfinance, has formed a Container FinanceUnit specifically designed to providefinancial services to the global containerindustry.The new unit will focus on the provisionof a full range of financial servicesto container leasing companies and shippinglines, including acting as arranger andunderwriter of lending products (rangingfrom equity to senior secured debt),cross border tax leases and advice in respectof financial restructuring and mergersand acquisitions.Eric Snellen, who has held variouspositions in Europe and Asia with theING Banking group over a period of 12years, most recently as managing directorof structured finance transport and logisticsin London, has been appointed headof the DVB Container Finance Unit. Hebrings with him a wealth of experiencein international transport finance, particularlyin terms of advising, structuring andarranging clients’ capital requirements inthe shipping, aviation and rail markets.December 2003 13

WorldCargonewsTransfennica charts a new courseEarlier this year four large,chartered ro-ro newbuildingsentered service for Transfennicato serve its rapidlygrowing Hanko-Lübeck routeand the Helsinki-based operatoris set to receive more tonnagefollowing an order by itsmain shareholder, Spliethoff.Four 3000 lane-m ro-ros willbe built at the StoczniaSzczecinska Nowa shipyard inSzczecin, Poland.This yard previously built sixof Spliethoff’s advanced side loadingpaper carriers currently deployedon the North Atlanticroute using Rauma as the mainpaper export centre. The Dutchoperator recently ordered fourmore of these versatile, S-typesideport/lo-lo vessels, taking theyard’s output to 14 ships as the firstfour were built in Japan.Size mattersThe new ro-ros will be the largestin Transfennica’s long termcharter fleet. The line does notArtist’s impression of the new ships on order from Polandown vessels directly but has longterm relationships with variousshipowners whereby the ownersorder a ship to suit Transfennica’sspecifications in return for a longterm charter commitment.The latest agreement, however,differs considerably, in that theshipowner ordering the vessels onbehalf of Transfennica is also itsmajority shareholder with a 51 percent stake. This controlling interestwas sold last year by Transfennica’spaper manufacturingshareholders, who originallyformed the company to securetheir exports, to TransfennicaNederland BV, a Dutch-registeredcompany part which is part of theprivately-owned Spliethoff group.While Finncarriers claimedTransfennica, the move wasblocked by the government oncompetition grounds, thereby allowingSpliethoff to step in. TheDutch group’s initial shareholdingagreement includes an option toincrease its stake, which may wellhappen as the paper industry owners,UPM-Kymmene, M-real andMyllykoski Paper who each retaina seat on the main Board alongwith three Spliethoff directors,seek to concentrate more on corebusiness. The acquisition is seen bymany observers as a good solutionas it gives Transfennica access toSpliethoff’s different cargo carryingapproach. At the same time itprovides Spliethoff with Transfennica’sro-ro expertise.First for SpliethoffThe new vessels are Spliethoff ’sfirst true ro-ro vessels as it has alwaysconcentrated on lo-lo operations.But it has entered the projectwith an open mind and the shipswill provide a high container deckstow capability.The newbuildings are based onthe design of its latest generationvessels from the German Sietasshipyard, although significantlylarger at 205m Loa instead of153m Loa of these earlier ships.This generates some 3000 lanemof capacity, including the fixedinternal ramps, over four deck levels,although if the weather deckis taken out for container stowage,ro-ro capacity is reduced toaround 2600 lane-m. While thisappears disproportionate, as containerscannot be stowed underthe accommodation deckhouse asthere is no direct crane access, it ispossible for trailers or cassettes tobe parked there. Delivery of thefirst ship is scheduled for the endof 2005, with one newbuildingfollowing at four month intervals.Open to offersTransfennica stresses that no decisionshave yet to be made as towhere the newbuildings will bedeployed and that they are suitablefor all of their existing services.However, the very highweather deck container capacityof some 660 TEU in three tiers(the upper tier would have to beempty or lightly loaded units forstability requirements) would suitthe Hamina-Lübeck service.German operator Combisped(HHLA/LHG) has slot-charteredthe weather deck of the vesselscurrently serving this route exclusivelyfor containers. The ships callfirst at Lübeck’s Nordlandkai terminalto discharge ro-ro cargo andthen transfer to Container TerminalLübeck (CTL) to (un)load theweather deck.Market take-up of the Combispedservice has not been as highas forecast (WorldCargo News, August2003, p17). However, blocktrains linking Hamburg and CTLand Hamina and Moscow wouldfurnish a Moscow-Hamburg transittime of just five days, and thusmake the service more attractive.It is also worth noting that thenewbuildings are about the samesize as the four new chartered shipscurrently operating the Hanko-Lübeck service. They could wellreplace them and allow them tobe returned or sub-chartered.Interestingly, Transfennica admitsthat the vessels could carryStoraEnso’s SECU 95 tonne cassettesif these were ever to be introducedinto the Finnish paperexport chain (see p15). The shipsare specified with higher decksand a 200 tonne capacity sternramp, mainly to allow the carriageof rolling heavy cargoes, such aselectrical transformers and projectcargo. These features would alsoallow SECU boxes to be carriedon the main deck as well.Big but quickThe vessels break with Transfennica’soperational concept ofhaving relatively small vessels providinga frequent service. Theymean that it must now operaterelatively large ro-ros but still ona tight frequency basis, therebyplacing considerable pressure onport turnaround times.The rapid growth of theLübeck-Hanko service, mainly asa result of M-real (which also control’sHanko’s main stevedoringcompany) directing traffic throughthe port, has meant thatTransfennica has had to turn tothe open charter market, insteadof working directly through owners,to take two pairs of large roronewbuildings.FINLAND: SHIPPINGThe company is thus now accruingexperience on turninground vessels which, in terms oflane-m, are almost twice the capacityof the existing 13 vesselsforming the long term core fleet.This flexibility can be seenfrom the fact that on three sailingseach week, when the vessel dischargesits Lübeck cargo at Hanko,it sails to the Estonian port ofPaldiski (three hours sailing time),where it discharges further cargo,mainly trailers loaded in Lübeck,then back loads again mainly trailersfor Germany.The ship then returns toHanko where it loads the Finnishexports and sails for Lübeck onthe evening of the morning whenit first arrived in the Finnish port!While this shuttle service mayappear an expensive option, it hasproved increasingly popular fortrailer traffic between Germanyand Estonia.Navy to the rescueTwo of these new chartered ships,LONGSTONE and BEACHY HEAD, arefrom the AWSR consortiumwhich was established to constructand operate six ro-ro vessels undera Private Finance Initiativefrom the British government.Four of the vessels operate forthe Ministry of Defence whiletwo are allowed to operate commercially,provided that they areavailable to the MoD in the eventof an emergency.Transfennica claims that theships have fitted well into itsservice, despite features such asthe provision of a side door anddeck crane which it does notuse. Also the weather deck containerfittings are more widelyspaced than on a commercialvessel due to the requirement ofthe MoD that deck containersmust be accessible at sea. Thisallows them to be used forworkshops, stores, emergencyaccommodation, etc, but it doesnot maximise on available spacefor high density stowage.The ships entered service inspring this year and were followedby two 3000 lane-m Stenanewbuildings, STENA FORERUNNERand STENA FORECASTER, in Juneand October. These Chinese-builtvessels are based on Stena’s ForerunnerMark 2 series. Servicespeed is 22 knots, compared to the21 knots of the AWSR ro-ros.The latest Transfennica newbuildingswill also have a 22 knotservice speed in keeping with itspolicy of relatively high speeds. Allits current core 13 ships have servicespeeds of 20-21 knots. Thelarger ships cannot rely on beingslightly faster to compensate forhaving almost twice the capacityand they still have to provide thesame port turnaround times.While slower speed would bemore economical, Transfennicapoints out that as all its ships areIce Class 1A Super, including theBritish-flag AWSR ships. Hencea power level must be installed inexcess of what would normally berequired. As such, if the hull formis made finer, high service speedcan be maintained. ❏To the Finland stationVR Cargo has a long history oftransporting long, heavy and oversizedcargo to Russia and otherCIS countries. Oil rig equipment,farm machinery, etc usually enterFinland by sea from Europe or theUS, heading for Russia and theCentral Asian Republics. TheFinnish route is a natural one asthe goods are easily reloaded ontoRussian wagons in the Finnishports, says VR Cargo’s marketingmanager Janne Häyrinen.VR Cargo’s loading specialistscompile a loading sketch and astrength calculation of each specialtransport and these are sentto the MPS or October Railwayfor approval for the transport.Permits have been processedsignificantly quicker in the pastfew years, so the overall transporttime is also much shorter. Loadingsketches are drafted with theAutoCad program, so the authorisationprocess should be evenfaster once electronic data transferis possible. ❏14December 2003

FINLAND: FOREST PRODUCTS/CARGO HANDLINGWorldCargonewsIs Finland set for aSECU revolution?StoraEnso’s new deal with ForthPorts plc has led to speculationabout Finnish cargoes being convertedto SECUs. The oversized cassette/container integrated transport SECUconcept (“Stora big box”) was conceivedby Swedish Stora prior to its merger withFinnish Enso Gutzeit in 1999. Up to nowthe Finnish side of the partnership hasresisted the SECU, pointing out that it isnot rail-compatible in Finland or anywhereelse in Europe (apart from Sweden,of course). It thus can be used onlyon a port-to-port basis and requires dedicatedhandling systems and ships.The case is cast-iron, but there appearsto be a growing feeling in Finland thatalthough SECU is a flawed concept, a biggerfault now would be not to use it to itsfull potential. As such, it seems possiblethat the SECU will one day be introducedinto the Finnish UK/Continent trade.Surprise dealFollowing tentative discussions this yearwith Finnish ports, the matter droppedout of sight. But it came as something ofa surprise to the ports when the Port ofTilbury announced last month a £31 millinvestment in a new automated paperimport terminal and warehouse to handleStoraEnso’s southern UK traffic bothfrom Sweden (which currently arrives viaZeebrugge ) and, significantly, from Finland,too. The latter traffic, running at400,000 tonnes/year, is currently movedthrough a relatively new distribution centreat Felixstowe, and is carried (mainlysto-ro) by Finncarriers.The Tilbury deal may signify that theSECU project from Finland is still on theagenda and will require reciprocal facilitiesin Finland for the UK market. Itwould then be natural to extend the conceptto Continental European destinations.In this case it would be necessaryto expand the Zeebrugge terminal ormove the main entry port. Vlissingen(Flushing) would be a strong contender.Discussions are believed to be underway with a view to extending theZeebrugge facility for Finnish imports. Itis assumed that in the short term Sweden-southernUK traffic will be incorporatedin a triangular service calling atGothenburg-Zeebrugge-Tilbury.At present the Swedish traffic for theUK is handled over Immingham(Cobelfret’s daily Immingham-Zeebruggeservice) and the (larger) southern shareof the cargo is moved to StoraEnso’s distributionhub in Barking. This hub is alsoserved by rail from Zeebrugge via theChannel tunnel.Next month Cobelfret is set to introducea new ro-ro service betweenGothenburg and Killingholme, where ithas a new long-term agreement withSimon Group’s Humber Sea Terminal.This might be used to ship SECUs orsto-ro/ro-ro paper for northern Britain.Scotland-based Forth Ports plc, ownerof the Port of Tilbury, is not known forits speculative spending and to commitsome £31 mill to a new automated paperhandling terminal on the back of a15 year agreement with StoraEnso suggeststhat much greater volumes are anticipated.Initially it is forecast that700,000 tonnes/year will be handledwhen the facility comes on stream in midSECUs with Liftec SC 95 straddle carrier inGothenburg. Could this become a familiar sightin Kemi and/or Kotka (and Tilbury)?Cobelfret has signed a 20-year leaseagreement with Simon Group to use HumberSea Terminal (HST) in Killingholme, wherea fourth berth with 60 acres of back-up willbe constructed. As the new base for Cobelfret’sHumberside operations (replacingImmingham), it will handle StoraEnso paperfrom Sweden and possibly in future Finland,too. Cobelfret is due to introduce a new servicefrom Gothenburg next month. InitiallyCobelfret will use the slots vacated bySeawheel which, following its MBO fromSimon, is dropping its Hamburg/Esbjerg roroservice and switching to lo-lo out of Goole.(Seawheel is retaining its Rotterdam-HSTro-ro service)December 2003 15

WorldCargonewsFINLAND: FOREST PRODUCTS2005, forecast to rise to at least 1mill tonnes/year.The Tilbury import terminalwill feature an automated, 10,000m 2 warehouse 30m high providingsome 29,000 pallet slots. Additionallythere will be a 23,500m 2 conventional warehouse andthere is provision to add a 3000m 2 waste paper facility to reloadSECU cassettes for the return leg,under EU rules on returningwaste paper to country of origin.The high bay automated stackingand retrieval warehouse willbe the first major portside facilityof its type in Europe and will extendthe boundaries of high volumepaper reel handling. TheFinnish group Pesmel has a strongindustrial background in this areaand has recently developed an automatedrail car unloading systemat Rauma (see WorldCargo News,September 2003, p43 for update).The Tilbury automated warehouseis designed for minimumdwell time, in order to providerapid response to demand fromthe local publishing groups alongLondon’s Thameside corridor. TheFinnish export terminals, however,serve a different purpose in thatthey are used as consolidation andwarehousing facilities.With Tilbury gearing up forautomated discharge, retrieval andstorage of paper reels carried inSECU containers, it must be assumedthat reciprocal SECU handlingfacilities will have to be establishedin Finland, althoughconsolidation and SECU stuffingcould be handled manually orsemi-automatically.One or twoIt is considered that StoraEnso’sFinnish export market usingSECUs could be consolidated atone port, although in practice itis more likely to be two, one inthe north (Gulf of Bothnia) andthe other in the south. As the papergroup currently exports considerabletraffic through Kemi inthe north and Kotka in the south,these two ports would appearlikely candidates. It is believed thatKemi has opened tentative SECUhandling equipment discussionswith prospective suppliers to geta feel for this market.Kemi Shipping, the port’s onlystevedore jointly owned byStoraEnso and M-real, recently investedin a new “one shot” containerloading system developedby Naaraharju (WorldCargo News,September 2003, p44). Althoughthis is designed for standard ISOcontainers, the design could bemodified to suit automated loadingof SECUs.Kemi, meanwhile, is developinga new satellite port area knownas the Ajos terminal which will befully commissioned in January2006. One quay is already in operationfor “non-regular” calls andit is planned to transfer progressivelyoperations from the originalVeitsiluoto terminal, adjacentto a large StoraEnso paper mill.Once unitised operations havemoved to Aijos, Veitsiluoto will beretained for bulk imports and pulpwood for the mill.Kotka currently handles some2 mill tonnes annually ofStoraEnso paper. It also handles800,000 tonnes of sawn timber,which will probably still be carriedconventionally even if paperconverts to SECUs..Paper hubThere is speculation that a SECUpilot trial could be started fromKemi relatively easily as well asfrom Kotka, where StoraEnso hasseveral large warehouses. However,whether these units would beshipped directly to Zeebrugge andTilbury is open to conjecture.There is an opinion that in thefirst phase SECU cassettes couldbe shipped to Gothenburg, wherethey would be consolidated foronward shipment.This could overcome the immediatelack of suitable tonnageas a shuttle service using relativelysmall ro-ros, although not commerciallyideal, would allow theoperation to build up until suchtime as dedicated vessels arebought into service.If the SECU system does makean impact on Finnish paper exports,it might be that StoraEnsowill opt, as it did for its Swedishexports, to open up the service fortender. However, some observersconsider StoraEnso was forcedinto the option as its principal carrierat the time, Tor Line, was committedto using Gent.Transfennica, for example, currentlyhas four high capacity rorovessels on order, throughSpliethoff (see p14). Although theyare not designed specifically forSECU transport, they could carrythem if required. ❏Kalmar’s positive thinkingAs part of its ongoing developmentprogramme, Kalmarhas developed a new systemfor RTG trolley drive whichis claimed to provide improvedtraction and accuracy.Keijo Parviainen, Kalmar’s vicepresident, yard cranes, explains thatthe company does not believe indirect friction drives on RTGs. Heaccepts, however, that this systemdoes work well on RMGs wherethe surface conditions are betterand do not subject the crane structureto torsional flexing.The new positive drive is basedon something Kalmar, through itsstraddle carrier development, isvery familiar with - lifting chains.However, in this case the chain isstatic and fixed at both ends ofeither side of the top frame slightlybelow the trolley rails. The maintrolley drive motor is located onthe underside of the trolley at 90deg to the direction of trolleytravel and drives a single input/twin output reduction gearbox.Shaft driveThis in turn drives two shaftson the left and right sides withthe end of these fitted with gearwheel sprockets which connectwith the chain. The shafts arefitted with universal joints - notbecause, claims Kalmar, they areneeded in operation but becauseKalmar’s new RTG trolley design will be fitted as standardit makes installation and commissioningsimpler.PTP Smartens upThe Port of Tanjung Pelepas(PTP) in Malaysia has opted to fitall 67 units of its RTG fleet withKalmar Industries’ Smartrailautosteering and container verificationsystem. “PTP presentlyhandles the world’s largest containervessels, but current ordersby lines are increasing today’s sizesand, as such, increasing pressure onterminals,” remarked PTP’s CEO,Datuk Mohd Sidik Osman.“With this system, PTP is ableto ensure that the highest productivitystandards will be met, thusenhancing the status of the port.”Under its contract, Kalmarmust install Smartrail without interruptingthe normal work of theterminal. “PTP handled 2.51 millionTEU from January to September2003,” added Datuk Sidik.“We expect to record a full-yearfigure of over 3 million TEU, souninterrupted work is crucial.”Up and overTo ensure a positive contact, thesprockets engage the underside ofthe chain which is looped over thegear wheel to allow it to meshwith the top third segment of thegear. To provide even greater traction,a double chain is used onboth sides along with a matchingdouble-toothed drive sprocket.Guide blocks are fitted at regularintervals to prevent the chainmoving out of alignment.The design is relatively maintenance-free.No lubrication isrequired for the chain and anauto-lube system is fitted for theshaft support bearings. As the trolleywheels are freely rotating, nowear generating slippage can takeplace. It is also a cost-effective solutionas it requires only a singlegearbox and motor. It will be fittedas standard on future ordersfollowing successful trials of amachine fitted with the systemearlier this year.Getting in the swingAs well as developing a new trolleydrive, Kalmar engineers havebeen investigating a simple buteffective anti-sway system basedon a single hoist drum and noauxiliary winches.A small, secondary, railmountedrope carrier is fittedunder the main trolley, which isoperated independently by twoA major retrofit of Smartrailhas already been carried out byKalmar at Jebel Ali for Dubai PortsAuthority (DPA). PTP has a goodrelationship at the very top levelwith DPA and would certainlyhave checked this out. DPA retrofittedSmartrail to all of its existingRTGs (40) and six new onesfrom Liebherr, in a bid to maintainthe port’s reliability and efficiencyin a time of businessgrowth. Like DPA, PTP operatesa mixed fleet of RTGs (in its casemostly from Hanjung/Doosanand Noell China).Most Kalmar RTGs orderedover the past two years have beenfitted or retrofitted with Smartrail.These include cranes delivered toNew Jersey (Global), Oslo, Dublin(DFT), La Spezia (LSCT),Dunkirk (NFTI), Livorno (TDT),Istanbul (Kumport) and SaintPetersburg (FCT). ❏16December 2003

FINLAND: FOREST PRODUCTS/CARGO HANDLINGWorldCargonewsSince 2001 Konecranes has supplied 24RTGs to APM Terminals in the US (formerlyMaersk Sealand, Inc) - at Elizabeth, Norfolkand Houstonelectrically-driven endless chains on eitherrail. Two sensors are fitted on thespreader which continually pass its positionin relation to the trolley to theRTG’s main PLC via the spreader cabledata umbilical. The PLC calculatesthe action required to prevent sway, oranticipated sway and could, in theory, automaticallycompensate by moving therope carrier independently of the maintrolley. However, Kalmar has opted for adiscretionary system whereby the operatorsimply presses a “stabilise” button onthe control joystick to kill sway.This effectively “slips the lead” off therope carrier to allow it to do what it hadbeen continually programmed to undertake,thereby providing virtually instantaneousreaction. A permanent anti-swaysystem is not normally liked by experienceddrivers as they perceive the systemto be too slow and stiff.Thus, Kalmar’s solution is to let thedriver use sway to achieve faster cycletimes, but kill it when the spreader is inthe spotting position. This new system willalso be fitted as standard.dal facilities, in a similar manner to thatproposed by several self-loading trailermanufacturers. Accordingly the companyis looking to place it on a demonstrationsite early next year.The core of Meclift’s material handlingequipment production is the uniqueML1609R variable reach truck whichcombines a conventional FLT mast carriagecarried on twin booms mountedjust forward of the steer axle. The unitwas developed to drive into ISO containersand is just 2m wide and 2.24m high.Despite these small dimensions and lightweight (17.4 tonnes), lift capacity is 16tonnes and it can push or draw out loadsof up to 25 tonnes to/from containers.The machine’s very properties, however,make it hard to achieve high volumesales and it has to be built to order,generating larger lead times and highercosts. However, it would probably benefitfrom being marketed to a wider internationalaudience through a largerdealer network.Telescopic tricycleMeclift’s latest development retains thetwin boom mast configuration of theML1609R but the booms are telescopicand moreover, it has an unusual, hydrostaticdrive, tricycle wheel design. To beknown as the ML1200RP, it is intendedfor paper reel handling and the twinbooms are fitted with an integrated triplearm rotatable clamp, probably to besupplied by Auramo. The clamp is attachedto the beam between the two arms by ahydraulically-operated pivot arm to providetilt movements. The machine is ca-pable of an 8 tonne lift to a height of 5mand has an outreach of 1.85m at full load.The key to the design is its “open”front end which allows a 1700mm clearancebetween the inside of the frontwheels. As they are hydrostatically driven,there is no conventional drive axle, so thebooms can be retracted to carry a reelvertically between the front wheels.This reduces the wheel loadings significantlyto 14 tonnes/axle line whenfully loaded, which will allow the machineto work inside a rail wagon evenwith 2 x 4 tonne reels or one 8 tonnereel. The launch customer is understoodto be UPM-Kymmene (Kaukas mill), forhandling jumbo reels.The single rear wheel can be turnedthrough 180 deg. Coupled with the abilityto rotate the front drive wheels in dif-Meclift has secured new funding to helpcontinue development of its niche productsferent directions, this gives exceptionalmanoeuvrability and the turning circle isless than 4m diameter. Overall width is2500mm at the front and 2100mm at therear while the wheelbase is 3000mm.Height is just under 3m. ❏RTG-16...and RTG-8What will not be standard, as yet, is a 16-wheel RTG design. This is believed to beundergoing trials and may be announcedin the early spring. It has been an “opensecret” for some time that Kalmar wasworking on a 16-wheel RTG.Similarly, but inversely, Konecranes isknown to be working on an 8-wheel design,the first of which is believed to beslated for delivery to Luka Koper nextyear. Konecranes has enjoyed much successwith its RTG-16 design, particularlyin the USA (and most recently in Israel).Both Kalmar and Konecranes are aimingto broaden further their market appeal byadding to their respective product ranges.The little guysAt the opposite end of the scale tocompanies such as Kalmar andKonecranes is Meclift. Like many small,engineering-led companies with innovativedesigns, Meclift has struggled inthe past to fund the R&D so necessaryto its success. However, having securednew funding, Meclift is in a strongerposition to market its unusual range of(mainly) paper roll and container handlersand to develop new models.The company is trying to build up itsagency network in the Nordic region andnorth Continent. At the same time it hasdiversified into forestry machines andcome up with a lightweight, remotelyoperated 4x4 articulated steer tree harvester.The machine is equipped with acrane and a load platform and, as it is notfitted with a cab, is lighter and more compactthan conventional designs. This allowsit to penetrate forests with minimumenvironmental impact.Following extensive trials at Finnstevein Helsinki, Meclift’s ML5016SR sidehandling reach stacker for containers hasbeen returned to its workshops inTampere, where it is being refurbished.The work involves relatively minormodifications and the fitting of the latestgeneration PLC to maximise performance,after which the unit will be employedas a demonstration vehicle focusingmainly on rail car container handling.As previously reported, the uniquemachine is essentially a side loader buthas twin telescopic booms in place of asliding mast. SWL is 30.5 tonnes at1800mm or 10.5 tonnes-3550mm. If thesupport jacks are deployed, the SWL goesup to 42.5 tonnes and 15.5 tonnes respectivelyat these load centres.Although the machine was tested in acontainer terminal, Meclift’s new managementconsider that the design’s greatestpotential could be in small multi-mo-December 2003 17

WorldCargonewsFINLAND: TERMINAL OPERATIONS/PORT DEVELOPMENTFinnsteve looks to automationThe Port of Helsinki’s longmootedmove to Vuossariis subject to yet anotherdelay following the discovery oftoxins in the seabed from (the nowillegal) tin-based, anti-foulingpaint. The polluted spoil will probablybe disposed of inland in animpervious pit and capped - anexpensive solution but one whichwill minimise further disruptionto the construction project.Limited operations at Vuossarimay commence in 2006 but theport is not expected to be commissioneduntil the end of 2008.The Port of Helsinki plans tomove over a 2-3 week period withno disruption to service.Finnsteve, Finland’s main,common user, general cargo terminaloperator, is confident thatit can meet the challenge, eventhough, in the view of Hans Martin,the company’s managing director,it has never been attemptedbefore in northern Europe.Most ports simply expandedand, in the case where a “greenfield”site was developed, such asthe shift from Bremen to Bremerhaven,the move was gradual.It may be possible to switch rorotraffic (Sompassari) at a differenttime to the container traffic(West Harbour) as the terminalsare already physically separate, butFinnsteve would like to gain thebenefits of an integrated operationas soon as possible.Starting afreshIn any case, Finnsteve is able towork with a “blank sheet of paper”on what it wants for its newfacility and has come up with aninteresting scenario for its newcontainer terminal. Three landsidescenarios were looked at:● Straddle carrier (1 over 2) direct(ie no change). This is consideredthe worst option, given thenature of Finnsteve’s traffic (feederservices). Furthermore, Martindoes not consider that a Brisbanetypeautomated straddle carriersystem would be suitable, due tothe severe Finnish weather.● RTG stacks fed by 1 over 1 shuttlecarriers instead of tractor/trailer sets - the middle option. Aspreviously reported in WorldCargoNews (October 2003, pp26-27),Finnsteve has a Kalmar shuttle carrierand carried out extensive trialswith it in the West Harbour. Itfound that the machine did notreally fit well into its standard 1over 2 operation, but this is notreally a guide to how shuttle carrierswould operate with RTGs.However, Kalmar itself regards anRTG/ shuttle carrier combinationas a poor solution (see WorldCargoNews, November 2003, pp49-50).As also previously reported,Finnsteve transferred its shuttlecarrier to its daughter companyin Turku, to support a reach stackeryard. It fits in well there as a tractor/traileralternative.● Crane to crane transfer. This isthe best solution, Finnsteve believes,to accommodate growthand reach a target of 45-50 moves/crane hour. The cranes would interfacedirectly with automatedRMGs running on rails parallel tothe quay. The cranes are assumedto be conventional, single trolleycranes so the containers have tobe grounded.As Martin points out, thesystem bypasses the need forshuttle carriers. In broad terms,the concept is not new (egEurokai/La Spezia, MatsonMousetrap), but it is regarded asrisky as there are no “buffers”to provide flexibility. With anautomated RMG, the risks areeven greater. Martin recognisesthis: “It will require some veryinteresting technical and softwaresolutions,” he says.The problem is mainly on theimport cycle where the quaysidecrane will ground the containerin its backreach to be picked upby the cantilever of the RMG. Ifaccurate positioning can be obtained,the system might showvery high cycle times. The exportcycle is not as demanding as theRMG can “find” the requiredcrane through the tasking computerand align with it throughsensors.A detailed simulation programmehas been developed byCosmos which has also beenworking on the evaluation software,presumably using some ofits experienced gained with thenow defunct automated OBCproject for HesseNoord Natie.Wider than wideThe system, employing three orfour cranes supported by five orsix RMGs, would have more thantwice the capacity of Finnsteve’scurrent 330,000 TEU throughputand could easily reach 1.3 millTEU/year using only one stack.However, as there is only onestack it has to be exceptionallywide. The RMGs will span at least80m and perhaps as much as100m, not counting the requiredwaterside cantilever and (prob-ably) a landside cantilever to serviceroad trucks. Such a span mightrequire a central supporting framewith extra, non-powered bogies.This arrangement would certainlyhelp with alignment as slewing isalways going to be a problem onsuch large span machines.In a change of approach,Finnsteve intends to purchase itsown quayside cranes rather thanlease them from the port authority.The control and tasking softwarebetween the quayside and stackingcranes must be fully integrated, sothe system should be regarded asone unit. This would be very difficultto achieve, argues Finnsteve, ifthe cranes and their drivers are suppliedby the port authority, as is itscurrent practice. ❏Hanko hits a new highThe Port of Hanko has had a remarkableturnaround in fortunesince the dark days of 1996, whenRailship, its major customer, transferredto Turku. Throughput hassince doubled and will reach almost1 mill tonnes this year. Asthe port caters exclusively for rorotraffic, this represents significantlevels of activity.Hanko’s relatively ice-free statushas helped, particularly followinglast year’s severe winter whenproblems were experienced in theGulf of Bothnia. To ensure reliabledelivery, M-real is to start railingpaper from the north some750 kms to Hanko instead of shippingthrough Kemi. Initially thisswitch is only for the winter butthere are indications that the trafficmight stay.Currently there is a daily sailingto Lübeck with a large (3000lane-m) Transfennica ship. Transfennicaalso provides four weeklysailings to Paldiski and there is anightly call by the Superfast ferries.The arrival of Superfast in2000 has seen passenger numbersjump from nothing to 70,000 inthe first full year to an estimated182,000 this year. Hanko is nowFinland’s third passenger ferryport, after Helsinki and Turku.The port’s trailer traffic hasmore than doubled from 51,000units in 2000 to around 115,000units this year. New car importtraffic has also shown remarkablegrowth. Last year’s record of140,000 vehicles will reach almost200,000 units this year.Much of this traffic is destinedfor the fast-growing Russian market.The port admits that it facescompetition for this business fromthe eastern ports of Kotka andHamina which are developingtheir own terminals. ❏Steveco plans paying off“The pieces are falling into place,”says Olli Parikka, Steveco’s marketingdirector, of his company’slong-term planning goals. Whenthe first boom in the post-SovietRussian economy turned to bust,both Kotka and Hamina were particularlyexposed and the investmentsalready carried out and inthe pipeline (by both port authoritiesand HMT Hamina MultimodalTerminals Oy as well as bySteveco) looked wildly optimistic.But perhaps they are now alittle easier to justify.Kotka is Finland’s second containerport, handling 243,800TEU last year. The forecast for2003 is 270,000 TEU at theMussalo container terminal operatedby Steveco, where last year235,000 TEU were handled. Theport is set to add a fifth Konecranes’ship-to-shore gantry crane.This should arrive fully-erect fromHanko at the end of next year andbe in service early in 2005.Kotka is also looking to developautomobile traffic, focusingspecifically on the fast-growingRussian import market. The portrecognises that forest products traffic(this year ca. 4.25 mt of paper,1.6 mt of sawn timber and plywoodand 0.25 mt of pulp) is fairlymature, so containers, trailers andcars need to be encouraged. A newimport facility is being developedat the Hietanen ro-ro terminal. Sofar only 25,000 cars have beenhandled here but the traffic isgrowing very strongly.The number of trailers handledby Steveco at Hamina has risen90 per cent, mainly as a result ofTransfennica’s Lübeck service,with some 35 per cent of this trafficdestined for Russia. As previouslyreported, the Lübeck serviceis completely containerised onthe weather deck and the containersare loaded by HMT using itsAnsaldo cranes at the same timeas Steveco works the stern ramp.The Port of Hamina has extendedits rail tracks to run underHMT’s cranes to allow directtransloading between ship andRussian rail cars. Most Russiandestinationcontainers landed atHamina, however, are eitherstripped in the port for onwardmovement by trailer, or movedinto Russia on road chassis.Combisped, the HHLA/LHGoperator which slot-charters theupper deck of the Lübeck servicero-ros, has also chartered the 600TEU feeder vessel, UTE. The shipsails three times/week toPetersburg (to the Petrolesportterminal in which HHLA has ashare), timed to coincide with theLübeck vessel’s arrival in Hamina.Frequency can be stepped up todaily if demand warrants. ❏Loading sawn timber in Kotka - a “classic” Steveco operation18December 2003

CARGO HANDLINGWorldCargonewsReach stacker designs going bananasConfirming an earlier report inWorldCargo News (March 2003, p1), a newreach stacker will shortly be launched byLiebherr-Werk Nenzing GmbH. Theprototype, which features a distinctivecurved, telescoping boom (Banana boom),has already been demonstrated to potentialcustomers at the company’s plant inAustria and, it is understood, will belaunched early in 2004.Lift capacity and boom configurationare such that, apparently, SWL is 45t upto 6 x 9ft 6in high in the first row, andthere is said to be access to the fifth tierin the second row even if the first row isalso stacked 5-high (ie no need for “pyramid”stacking). As previously surmised, theboom shape lends itself “naturally” tonegative lifting, such as containers onbarges. It is being called a “banana boom.”Liebherr reasons that in order to besuccessful in a “crowded” market, it hasto offer something extra. The variousLiebherr companies appear to operatefairly autonomously and be successful inall their piece good and bulk handlingequipment fields. Their products are generallyreckoned to be at the higher endof the price-performance spectrum. Judgingby its features, the new reach stackeris unlikely to be out of step in this regard.It is hoped to provide a full report later.Liebherr will shortly launch an unusual,new reach stacker, making the marketeven more competitive in the processby Hyster, are believed to have turned outaround 600 machines last year, of whichalmost two thirds were ECHs.There appears to have been a strongdemand for reach stackers from the USmilitary this year. This has nothing to dowith Kalmar’s ongoing production ofRTCHs in Sweden for US-TACOM andother defence forces approved by the Pentagon,but concerns normal (commercialspec) machines. Both Terex (PPM) andLinde HTD, for example, are known tohave had orders for machines for Kuwait(ie for coalition forces in Iraq).Marque twainKalmar is still the market leader in reachstackers, while Fantuzzi appears to havestepped up production, notably at NoellChina. CVS and Terex Cranes (PPM)appear to be going well. Like Kalmar, CVSnow has two marques (Ferrari and Belotti)with different technical characteristics.According to CVS, the former Belottideclined due to poor management and(related to that) lack of investment in after-sales,spare parts, an insufficient dealernetwork, etc. The Belotti products are nowavailable through the CVS network and,says CVS, will be fully-supported.Kalmar claims that sales of itsContchamp ‘F’ series and revisedContmaster reach stackers, both launchedin September last year (WorldCargo News,September 2002, pp38-39) have outstrippedits projected sale targets in theirfirst year on the market. Sales are wellahead of our targets all over the world,exceeding our expectations by almost 40per cent,” said Per Rosengren, productmanager of Kalmar reach stackers, lastmonth, highlighting recent orders for 15‘F’ Contchamps from customers in Africa,such as in Namibia and Kenya.Without any knowledge of Kalmar’ssales forecast or how sales break down asbetween Contchamps and Contmasters,it is hard to make much of its claims, butHead countEstablished players will probably welcomea new entrant of Liebherr’s strength andreputation in the ports industry like a holein the head. If one includes regional playerssuch as Madal, Indital and TCM, thereare probably 15 companies vying for businessin this sector.On the other hand, looking on thebright side, overall demand for reachstackers appears to have gone up this year,although some of this is ongoing conversionfrom masted container handlers(MCHs). The US is probably the only bigmarket where MCHs still predominatein laden container handling, but it hasbeen fairly quiet this year in any case.Recent business for Taylor in the USincludes two 5-high top picks for GreenwichTerminals LLC’s operation at PackerAvenue Marine Terminal, Philadelphia.Taylor (and perhaps Svetruck AB) areprobably the only significant MCH suppliersstill producing more laden thanempty (ECH) handlers. For ECH applications,the reach stacker has, if anything,lost ground to the MCH in the past fewyears all over the world. Recent “newcomer”to big trucks, Italy-based ZV, reportsan order for a 40 tonne MCH forAladdin Container Company in Dubai.Upright citizensSvetruck and Mitsubishi appear to be theonly “big names” still offering heavy FLTsbut not also reach stackers (either owndesign or badge-engineered). There seemsto be little prospect of Svetruck changingits policy. Its range covers MCHs,other FLTs and TMF log stackers from8-52t and it appears to retain strong brandloyalty from its customers in the port, forestry,steel and other heavy industries.Just now Svetruck is looking to expandin North America, where it ispresent through the former Kaldnes setup.Svetruck deliveries this year are understoodto include a total of 18 ECS-6H dedicated ECH machines for KatoenNatie/Teveco in Antwerp. These 1 over5 machines are actually equipped for 2over 5 stacking, using Elme’s patented,double horizontal twistlock spreader design(type 572).Svetruck is the biggest customer todate for this Elme spreader which positivelylocks two containers through thefront apertures of the corner castings. Thisenables stacks to be positioned close togetheras there is no need for space forside clamps.670-880?!Overall demand for reach stackers in 2002excluding Kalmar’s RTCHs has beenestimated at anything between 670 and880. WorldCargo News believes that theformer figure is more realistic. In theMCH sector, the top nine suppliers, leadDecember 2003 19

WorldCargonewsCARGO HANDLINGopinion solicited from unconnectedcomponents suppliers suggeststhat Kalmar has increased itsoverall share, which was estimatedat around one third in 2002 (notcounting military sales of theRTCH).The ‘F’ factorMoreover, the main thrust appearsto be Contchamp ‘F’, even thoughthere is said to be a 7-10 per centpremium for this machine comparedto Contmaster. Contmaster,says Kalmar, has proven popular inSouth America, especially in Brazil.According to Fernando Cruz,Kalmar’s sales and services managerin São Paulo, in the past yearorders for more than 25 Contmasterswere received from Brazilianoperators. According toKalmar in Sweden again, Sweden’sRail Combi AB is now buyingonly Kalmar reach stackers, whileCuypers of Belgium has recentlyordered two Contchamps andUnikai has ordered two for itsriver terminal in Wörth, Germany.Silver liningsAnother successful company inthe big truck field is SMVLiftttrucks AB. In June, SMVturned out its 1000th machine (a“repeat” 32-1200 FLT for HeungHwa Industry in Seoul ) since itwas restarted in Markaryd in 1995(the plant has been extended ontwo separate occasions since then).The former Silverdalen factoryturned out 500 machines in itshistory. Also in June, SMV wasawarded “Triple A” credit ratingby D&B, one of only 4.7 per centof Swedish limited companies toachieve this status for 2002-3.Recent orders for SMV includeanother very long wheelbase(9m), jackless SC 4545 TA3reach stacker for barge handlingduties, this time for Katoen Natiein Welsbecka (Gent), similar to themachines previously supplied toDUK Dörpen and UHHHaldesleben (Magdeburg) in Germany.Worldwide interest in bargehandlers is growing. So far, Kalmar,SMV, Fantuzzi and CVS are in this“niche” market (see WorldCargoNews, September 2003, p40).2 x 30t on the forksSMV’s recent deliveries in the superheavy class include the SL60-1500 A FLT delivered toRautaruukki Oy in Finland in July,for handling 2 x 30t coils, one oneach fork, @ 1500mm load centre.This design, SMV’s largest FLTto date, is attracting considerableinterest from other steel producers,steel stockholders and stevedores.Wheelbase is 6m and overallwidth over front tyres - 21.00-35/40 PR (with 18.00-33/36 PRon the rear singles) - is 4.6m.Maximum spread between theouter sides of the forks, which arespecially profiled for coils, is 3.4m.The machine is fitted with a294 kW Scania DI 12 50 A engine,Clark 40,000 transmissionand Kessler WDB D 111 PL 351drive axle. Optional extras inRautaruukki’s machine includeautomatic gearshift, heating forbrake, hydraulic and engine oil, aseparate hydraulic system for thebrakes including own tank andcooler, an extra large cab withextra sound insulation and joystickcontrols for the hydraulics, extraworking lights, two cameras andtwo monitor screens.In terms of lift capacity, SMVhas topped even this FLT with theSC 4537 TAX 3 multi-purposereach stacker supplied in Octoberlast year to BLG AutologisticsGmbH in Bremerhaven. This machineis based on the 7.5m wheelbaseSC 4537 CA (X) 5 designbut is fitted with a special quickrelease attachment so it can beswitched between normal containerhandling duties and handlingheavy loads up to 80t undersling bar. For this purpose, thejacks have to be engaged, so it cannotpick and carry the heavy loads.It is fitted with a hydraulicallyelevating cab, offset to the right.First and second row stacking arelimited to 3-high, compared to 5x 9ft 6in high in the first row forthe normal container handler, becauseof the special interchangeablelifting equipment.SMV’s multi-purpose SC 45 37 TA3 at Bremerhaven can lift up to 80 tonnesunder sling bar with front jacks engaged. The company also reports growinginterest in its giant SL60-1500 A FLTVintage yearThis has been a good year forPPM reach stackers. Production atMontceau-les-Mines is bookedwell into next year and the companyis looking to increase capacity.Lead times for Tier 2(Cummins QSM 11 engines)machines are said to be runningat five months, with three monthsfor Tier 1 machines (CumminsM11). A new product is also beingworked on.It is believed that 35-40 machineshave been built for Hysterthis year (Yardmasters), leavingmore than two thirds of productionfor own channels.As is well-known the Hysteragreement succeeded an earlierone which PPM had with the(then) Kaldnes, discontinued afterKaldnes was absorbed by Svetruck.The Hyster deal was originallylimited to the US but has graduallybeen extended to other markets.Officially, for Hyster, theYardmaster complements its own‘RS’ range of reach stackers, thereverse-engineered Hyco designs.Deliveries this year includethree RS46-33 CHs to PDTeesport (two at the P&O Ferriesterminal and one at the containerterminal). One is on order forTilbury, which took two last year.A feature of the RS design isthe mid-chassis position of theboom lift cylinders, which meansa full frontal vision field for thedriver. In some cases, the normalcylinder mounting towards thefront of the chassis can obstructthe sight line to the corner castingsof 20fts at 2-3 high and of40fts at higher stacking heights.On intermodal machines, whenthe driver slides forward his cabto facilitate bottom lifting, the cylindersmay block his exit. However,on some designs (eg LindeHTD range), the cylinders arewide-spaced and this helps toavoid the problems, even thoughthey are mounted near the front.An option for the RSintermodal models is the weighingand alarm system co-developedwith Elme to prevent excentricallyloaded trailers and bottomlift swap bodies tipping offthe grapple feet (WorldCargo News,January 2003, p2).Dealer dealHyster is committed to workingthrough strong independent dealerssuch as Barloworld (eg RSA,UK, most of the US) and Zeppelin(Germany, Austria, much of EEurope). Barloworld has just acquiredHyster’s Dutch dealerGeveke - a move which couldstrengthen Hyster’s position in thebig truck market where they aremade (at Nijmegen).As previously reported, in theUK last year Barloworld secureda 10-year contract with the Portof Tilbury to supply and maintainHyster and other materials handlingequipment throughout theport apart from Finnterminal, coveredby an earlier agreement withLansing Linde. This latter dealhowever, is thought to be up forrenegotiation soon. ❏Thamesport on a highUK operator Thamesport (London)Limited, part of Hutchisongroup, recently ordered four dedicated,ECH mast trucks fromKalmar, to operate its new 2.7-haNorth Park empty yard, work onwhich was completed in August.The trucks, fitted with theVolvo TAD 720 VE engine, Clark32,000 transmission and Kesslerfront axle, are Type DCE 90-45E7 Contchamps, with a 9 tonneSWL at up to 7-high (ie 1 over 6or 2 over 6 x 8ft 6in high/1 over5 or 2 over 5 x 9ft 6in high).Thamesport will use the machineswith a single telescopingsideframe attachment to stack upto 7-high and, on this basis, NorthPark has a capacity for 3270 TEU.As Thamesport’s COO DavidGledhill explains, it would nothave been possible to provide suchdense empty storage on the oldsurface. The improvement workcarried out in the summer involvedthe regrading of the existingstone surface with 70mm ofDBM binder course, which wasfinished with a 35mm layer ofstone mastic asphalt surfacecourse.By removing the empty containersfrom the automated stacks,says Gledhill, stack density at theport has been reduced by as muchas 17 per cent. “Relocating emptycontainers will enable us to increaseproductivity in the stacksfor full containers, which is wherewe need to focus our resources.”● Thamesport will shortly havebetter truck access. After years oflobbying, the Highways Agencyhas finally agreed to dual a 3.5 kmsection of the A228 leading to theport. The first phase of this roadenhancement is under way and isintended for completion in Decembernext year. ❏20December 2003

CARGO HANDLINGWorldCargonewsPatrick takes robotic routeNext year Patrick Stevedores willmove its Brisbane container operationsfrom berths 1-3 to berths7-9 as part of Brisbane Port Corporation’s(BPC) plan to relocatecargo activities from HamiltonWharves to Fisherman’s Island.After one year of commercialoperations with automated straddlecarriers (autostrads) at berth7, Patrick has declared the technologya success and it will extendthe operation over berths 7-9. Kalmar and Patrick are marketingthe technology to other operators,through Patrick Technologyand Systems (PTS), which isowned 85 per cent by Patrick and15 per cent by Kalmar.Patrick’s CEO Chris Corrigandescribes his company’s progresstowards automation as “careful andprogressive and not ideologicallydriven.”Following the 1998 waterfrontdispute (that Corriganterms a “period of reform”), portproductivity has improved significantlyand average net crane ratesnow exceed 25 moves per hour.Corrigan does not expect anotherbattle with the MaritimeUnion of Australia (MUA) whenit opens the new terminal. Patrickwill still operate a separate vehicleand general cargo terminal inBrisbane and Corrigan says therewill be few if any redundanciesfrom automation.The four keysBefore proceeding with theautostrad project, Patrick’s Boardneeded to be convinced that fourkey criteria would be met:● use of standard machines● flexibility (can be gradually implemented)● similar or better productivity● cost-effectiveness.As previously reported theautostrads are standard Kalmarmachines and the technology allowsautomation to be implementedin gradual steps. And, afterone year of operations at berth7 handling one call/week from aCosco vessel requiring 300-500container exchanges, Patrick is ina good position to evaluate productivityand cost-effectiveness.Berth 7 at Brisbane is nowsupporting a quay crane averageof 22 moves an hour, up from 15when the first vessels were handledjust over a year ago. By pushingCosco’s vessel quickly throughits calls at Melbourne and SydneyPatrick was able to buy extra timeat Brisbane in the early days whileit worked on improving productivity.Productivity is higher atPatrick’s Botany terminal (27.5moves/net crane hour) but theautostrads have hit the limit of thecranes at Brisbane.PTS’ technical directorGraeme Nelmes says hoisting andtrolley speeds are very slow andthe lift height (just above 20m)means the crane has to shuffleboxes once they are stacked 4-highon deck or gantry around a stackwith the hoisted box. Outreach issufficient for 13-row ships but listcan mean the ship has to be turnedaround to access the 13th row.Cost savingsPatrick calculates the autostradswill cut its labour costs at Brisbaneby 40 per cent and there arealso benefits from achieving a true24-hour operation. CurrentlyPatrick gets 21.5 hours workingtime from three shifts once mealbreaks, etc are deducted.Patrick also expects a 30 percent reduction in operating costsachieved through savings in paving,damage costs and fuel consumption.Autostrads need no linemarkings and stacks can be movedregularly by 0.5m so the terminalsurface wears evenly. Patrick isleasing berths 8 and 9 on an “unimproved”basis, meaning it mustpay for paving upkeep itself.By automating accelerationrates and speed Kalmar has beenable to cut fuel consumption by30 per cent and general maintenancecosts by 10-20 per cent. Inall, says Corrigan, the savings workout at around A$20/move at animp/ex terminal and, he expects,more at a transhipment terminal.Automation also means increasedsafety, although the MUATaking Botany lessonsPatrick expects to implementautostrads at Sydney, Melbourneand Fremantle, probably in thatorder. The current priority is toreconfigure the terminal at PortBotany to increase capacity from630,000 TEU to 1.3 mill TEU.This year Botany is expected tohandle around 560,000 TEU and,with a growth rate of seven percent, it will be full by 2005.Patrick has redesigned theBotany terminal to incorporate anew road/rail exchange area thatwill be served by up to sevenRMGs. By closing a public roadbehind the terminal Patrick willcreate room for RMGs with a15m cantilever for road trucks, a33.5m span for two rail tracks andintermediate stacking, and another15m cantilever for the straddle exchangewith the yard. The RMGswill be equipped with a rotatingtrolley and trucks will park underthe cantilever at a 45 deg angle.Patrick can achieve an averageutilisation of 80 per cent with fiveRMGs to begin with, but five arenot enough for the gate peaks. Toget round this a separate straddle/truck exchange area will be createdat the west end for out-ofgaugecargo.Importantly, the whole Botanyredevelopment is being plannedPatrick Stevedores will operate a 3-berth terminal inBrisbane with automated Kalmar straddle carriersProposed RMG layout for Patrick’sBotany terminalfor future automation. The RMGswill be semi-automated initially,with stacking between the legscontrolled automatically and theroad interface remotely by an operatorin a central location, similarto the OHBCs at Pasir Panjang,(although hand-held remote controllerswill also be available).No decision has yet been takenon when the autostrads will beimplemented but Patrick is clearthat it intends to take this route.Autostrads would increase the landarea available for container stacksas the machines are able to travelat full speed over stacks so fewerinternal roadways are needed.In the longer term Patrick canincrease capacity to 1.6 mill TEUwith 4-high straddle carriers andthese will be specified as the fleetis replaced. Looking even furtherahead, autostrads will be replacedgradually with RMGs and (automated?)shuttle carriers when furtheryard capacity is required. ❏says that on 13 October oneautostrad “went haywire” andcrashed through the fence into thereefer area. PTS’ principal consultantHoward Wren explains thatthe machine was having its controllerreplaced at the time. Theengineer failed to follow the correctprocedure and the autostradaccelerated forward into the fence.In Wren’s view, the incident actuallydemonstrated the efficacy ofthe safety systems. As soon as themachine moved the alarm was triggered,the brakes automatically appliedand it was halted within 3m.It is worth noting that in thesame month two separate incidentswith manned machines resultedin serious injuries to drivers.At Patrick’s Botany terminal adriver suffered a broken backwhen his machine overturned and,as reported on p2, there was also aserious accident in Auckland.New terminalWhen construction is completedon berths 8 and 9 Patrick will have750m of continuous berth and 25-ha of CY. None of the Brisbaneterminals have an intermodal interface,as the BPC’s policy is tooperate a common railhead forPatrick and P&O Ports. The exactnumber of quay cranes has notyet been decided but Patrick hasordered 14 3-high Kalmar e-driveautostrads purpose-built for automationwith no driver’s cabs.Two of the five existingautostrads will be kept and theother three will have their automatedsystems removed and bereturned to manual duty at PortBotany, bringing the robot fleet to16. Patrick’s total investment in thenew terminal is around A$100mill, depending on how manynew quay cranes are purchased.Nelmes says that Patrick’s reasonsfor switching to e-drive arethe same as at other straddle terminals;expected savings in maintenanceand fuel costs. The e-drivemachines will also bring significantbenefits for automation.Steering should be easier as thetorque converters on twin-enginehydrodynamic machines do notalways deliver exactly the samepower to both sides and electricmotors will allow for more precise,smoother inching control.The e-drive will provide fullhoisting power at any time. Currentlythe autostrads must stop andhoist the container after brakingin the turn to face the stack. Forthe engineers working on theproject, however, the most excitingpoint is the opportunity towork with brand new machinesinstead of ones battered from10,000 hours duty at Botany.At the moment the yard is laidout with stacks parallel to the quaybecause berth 7 was initially builtfor RTGs and the yard is longerthan it is deep. Berths 8 and 9 willhave a deeper yard and the stackswill run perpendicular to the quay.By 2009 berth 10 should be ready,giving the site a more uniformdepth, 850m of quay and a capacityof 850,000 TEU/year.The stacking system is a “controlledrandom” or “scattered” systembased on best available slotrather than stacking in vessel/weight bands. PTS managing directorChris Knott says this typeof yard management is easier toimplement in an automated environmentwhere route, accelerationand speed are known precisely.Currently two autostrads atBrisbane are devoted to the gateinterchange but at the new terminalall machines will be pooled.The development team is stilltweaking the yard system but Wrensays development is 97 per centcomplete. Braking is somewhatjerky but, adds Illka Annala,Kalmar’s VP, straddle carriers, thisproblem will go once the new controlsoftware has been bedded in.Patrick has not decidedwhether to refurbish existing cranes(some would have to be raised) orbuy new. Currently, the craneslower containers between the legswhere twistlocks are removed beforehoisting the container over thefence and into the automated area.Sydney: Kalmar’s CEO Christer Granskog and Patrick’s CEO Chris Corriganconfirm the deal for 14 purpose-built (cabless) autostrads with e-drive for BrisbaneNelmes was previously unconvincedby double trolley arrangements,but after visiting CTA inHamburg has changed his mind.However the decision may comedown to wheel loads - the quay isunable to support double trolleycranes weighing as much as theones at CTA from ZPMC.Patrick will probably opt for an18-wide outreach and a 50 tonneSWL. Add in a lighter structure, andit may be possible to keep withindock limits. Patrick’s own, patented6-fall reeving system and headblockdesign (WorldCargo News, December2002, p49) may also be fitted.Modular architecturePatrick and Kalmar have cut thecost of automation by developingmodular architecture that can be“bolted on” to existing systemswith minimal change in workprocedures. Only one machineneeds to be automated and any 5thor 6th generation Kalmar machinecan be used. The cost of theautostrads and the necessary hardwareand software has not beendisclosed, but Patrick says the premiumfor automation will pay foritself in less than 18 months.As noted, PTS is marketing thetechnology to the wider industry.For some time Kalmar has beenoffering Auto Pick and Place(APP) and Smartpath as an optionPatrick’s relationship withKalmar and Sydney University’sAustralian Centre for FieldRobotics has helped keep developmentcosts down (Knottestimates Patrick’s investmentin automation is less than A$30mill). Several graduate studentswho completed applied researchin port automation nowwork for the company. Fromnext year Patrick will fund aChair in automation and logisticsat the Centre. ❏on its CSC and e-drive machines.These systems use an array of sensorsto stop the straddle carrier inthe correct position over the container,lower and adjust the positionof the spreader and engage thetwistlocks. APP also controls thehoisting height for stacking operationsand Smartpath updates theTOS with container position everytime the twistlocks are activated.For navigation the autostradsare fitted with a dual-loop navigationsystem. The primary loopuses millimetre wave radar andsteer encoders whilst the secondis an inertial navigation systemcorrected by DGPS. (See WorldCargo News, May 2002, p51).The key control systems arethe traffic management system(TMS), the on-board vehiclemanagement system (VMS),which can interface with any vesselplanning software, and thenavigation system. There is also aweb-enabled remote maintenanceinterface. These systems are beingmarketed by PTS as licensed products.The third part of the automationpackage is the expertise todesign the layout and implementthe technology and PTS offers thison a consultancy basis.Needless to say there is muchinterest in the terminal. Peoplefrom every major global terminaloperator have visited the site. Wrenis preparing several layouts for interestedoperators but no doubtmany are waiting to see a fullmulti-user terminal operating ona larger scale before committing.Patrick is confident that automationwill give it an edge in theAustralian market and it could alsobe a competitive edge for Patrickto expand outside Australia.Corrigan, however, playeddown the suggestion. “Our primaryfocus” he said, “is getting thetechnology to work in the Australianenvironment.” ❏December 2003 21

WorldCargonewsCARGO HANDLINGDriving to lower emissionsThe next stage of NRMM (nonroadmobile machinery) engineemission controls, designated 3Ain Europe and 3 in the US, comesinto effect in January 2006 forengines in the 130-560 kW powerband, followed one year later bythe 75 = P = < 130 kW powerband. NRMM has traditionallybeen an “emission step” behindhighway trucks (HGVs), says oneleading name, Scania, but the gapis closing. Near-equality may bereached after 2011 - Europe stage3B and US-EPA stage 4.The main driver is the needfor better air quality, against abackground of rising global demandfor road transport set in thecontext of current “worst case”scenarios such as Athens and LosAngeles. Although companiessuch as Volvo Penta and Scania usetheir NRMM engines to help“benchmark” their overall performance,the fact that they arealso leading HGV builders providesinvaluable know-how tomeet the NRMM targets, particularlysince today’s electronic controlsystems (EMS) have made itpossible to monitor engine performancein all conditions - coldstart, idling, top speed, etc.22Standards for engines in port mobile plant aremoving towards the highway truck levelNew harmony?Of real benefit to the industry, notonly the timing but also the technicalrequirements of the EU, US-EPA and Japan appear to be converging.An alignment of internationallegislation would mean thatthe same engine concept can beoffered worldwide more cost-effectively,without compromisingthe environmental objectives.New transient test proceduresare being developed, which setmore specific guidelines for measuringemissions. In part the newboundary conditions reflect disputesover real emission levels ofhighway trucks at normal highwayspeeds (WorldCargo News,February 2003, p1).One feature of the draft EUlegislation is that it sets a combinedlimit for NOx and non-methanehydrocarbons (NMHCs), in linewith US-EPA’s approach. HC levels,points out Volvo Penta, are alreadylow and are no longer considereda big problem. Most enginesnow keep lubrication oilwell away from the combustionprocess, due to better sealing betweenthe piston rings, cylinderlinings and so on.Knocking the NOxReducing gaseous nitrogen oxides(NOx) emissions, however, is thebig challenge. In the 3a (US-EPA3) proposals, the limit for NOx +NMHC for engines in the 75-560kW range is set at 4.0 g/kWh. Thelimit is 6.8 g/kWh under stage 2,so a reduction of more than onethird is being sought.The problem is that NOx isgenerated by the high temperaturesneeded for an efficient combustionprocess. So the challengeis to lower the temperature withoutcompromising this efficiencyand increasing fuel consumption.Technical solutions are availablebut of course there are cost implications.Engine makers are confidentthat they can meet the emissiontargets without compromisingthe inherent efficiency of thediesel engine, but the technologycannot be provided for free andthere may be implications forOEMs’ equipment design and useon the horizon as well.Current NOx limits can bemet by just retarding ignition timingto lower the cylinder pressure,although engine makers such asVolvo Penta and Scania agree thatthis is sub-optimal. One of themain tasks of engine developmentis to reduce emissions withoutincreasing fuel consumption, saysPer Lange, head of production,industrial and marine engines atScania. To underline his point,Lange claims that Scania hasachieved a steady 0.5 per cent/yearimprovement in the CO 2-NOx“curve” for several years now andexpects the trend to continue. Thepoint is that NOx cannot be consideredin isolation from all otherengine values.A similar approach is taken byVolvo Penta. Tim Davis, the company’sbusiness manager for materialshandling equipment applicationsin Europe, explains thatalthough timing delay lowers thetemperature, it exposes more oilto the cylinder wall and reducescombustion efficiency, resulting inhigher specific fuel consumption.In addition, more soot penetratesand “thickens” the lube oil, so oilchanges have to be more frequent.The quality and condition ofthe lube oil are, if anything, evenmore important today than 5-10years ago. Taking into accounttechnical improvements in filtration(eg centrifugal cleaners) andtheir customers’ desire to reducemaintenance costs and out-ofservicetime, OEMs are promotinglonger oil change intervals,with 500 hours now being thedesired “norm.”Note of cautionDavis, however, points out thatvarious operating conditions haveto be taken into account before500 hour changes can be recommended.For example, in an offroadenvironment, the chances arethat the fuel will have a relativelyhigh sulphur content. As sulphurreacts with water to produce sulphuricacid, the alkaline contentof the oil is progressively neutralised,so the oil becomes sludgy andprovides less and less lubrication.The quality of lube oil has generallyimproved in recent years butit can give concern. The lower thebase number of the oil to startwith, the worse the problem is.In addition, much depends onhow the machines are driven. Terminaltractors are a particularproblem in this respect, as the enginestend to be either idling orgoing flat out. The harder the drivingcycle, the more dilute the oilbecomes and the poorer its lubricationproperties.If high grade oil and low sulphurfuel are used and machinesare driven in regular cycles, itmight be possible to extend oilchange intervals well beyond 500hours. But this rarely happens inpractice. In some cases, the oilneeds to be changed more frequentlythan every 500 hours.Volvo Penta recommends oilanalysis programmes. Some portoperators have adopted these andsave money in the long run, saysDavis, because they gain muchmore precise knowledge of whatis going on in their equipment andhow to optimise performance. Butmost ports prefer to change oil ona running hours’ basis. This is amuch cruder yardstick but is simplerand makes it easier to predictthe out-of-service interval periodsof the equipment.As regards stage 3a (US-EPA3), more attention will have to bepaid to air-air intercooling tolower air temperature as it entersthe cylinder. However, air-air requiresmore space to fit than airwaterintercooling, and this couldpresent problems, particularly forterminal tractors and twin-enginestraddle carriers.Taking into account that the“natural cooling” of highwayspeeds is not available, fan size andspeed and hence noise output arealready problematic. In addition,the longer air lines required canreduce responsiveness, (although awastegate turbo helps boost torqueat lower engine speeds).The burn process itself has alreadybeen made more efficientby using high pressure electronicunit injectors (although commonrail injection may still be consideredadequate for smaller engines),and further improvements seemlikely. Volvo Penta, for example, isalready using 1800 bar UI withphased injection periods for evenbetter atomisation and 2000 barinjectors are becoming available.CustomisationThe electronic controls whichmake this precision possible acrossthe entire power range also allowengine makers to provide a rangeof power and torque curves to suitthe performance criteria of differentOEMs, for example to matchthe characteristics of particulartransmissions, while staying withinthe overall emission limits.The earliest EMS engines, saysDavis, were “stand alone” unitswith drive-by-wire throttle, butincreasingly they are being integratedwith all the machine’s function,as more OEMs in theNRMM environment opt forCAN-bus controls. In the ports/intermodal sector, Kalmar claimsto have gone the furthest downthis road, with its ‘F’ Contchampreach stacker. This is fitted withthe Volvo TWD 1240 VE engine.Two-stage turbocharging - increasinginlet pressure in two stepsThis graph from Scania depicts the shift towards practically zero emission levelsbrought about by successive stages of environmental legislationto provide higher boost pressures- increases the efficiency of theengine package as more of theenergy in the exhaust system isused, but is expensive.Another possibility is VGT(variable geometry turbo) technology.This helps the turbochargerto maximise and controlthe boost pressure over a widerange of engine operating speeds.Turbocharger shaft speed is alsocontrolled, thus helping to eliminateturbo lag and improve power,fuel economy and noise levels.Scania’s Lange notes that asVGT provides a broader range ofair-handling capability to theturbo, it also facilitates exhaust gasrecirculation (EGR) systems,where part of the fresh air intakeis replaced with cooled exhaustgases. This reduces peak combustiontemperatures and thus NOx.However, EGR has to be combinedwith low sulphur fuel; otherwisehigh particulates (PM) willbe generated. High sulphur contentcan create problems for EGRsystem components, especiallysome PM after-treatment solutions.Hence EGR technologymay be appropriate for road trucksin Europe, the US and Japan, butfor global off-road markets it is notfeasible at present.Low sulphur fuelLooking ahead, however, EU 3B/US-EPA 4, provisionally plannedfor introduction in 2011, at leastfor engines in the 130-560 kWrange, assumes mandatory use oflow sulphur fuel (< 10 ppm S) inall NRMM markets. Assumingthis is achievable, EGR solutionsmay become widely adopted.Under 3b/4, PM limits arescaled back massively - by a factorof 10 in the 130-560 kW rangefrom 0.2 g/kWh in stage 3a (nochange from stage 2) to 0.025 g/kWh. As well as low sulphur fuel,after treatment systems will alsobe required. These are commonlyreferred to as particulate filters or“equivalent technology,” such as(urea-based) selective catalytic reduction(SCR) systems and oxidationcatalysts. (SCR systems areaimed primarily at NOx reduction,but also help reduce PM dueto the catalytic process).If these solutions prove to beunworkable, the PM limit is stillscaled back, but “only” by 25 percent to 0.15 g/kWh. Similar factorsare applied to off-road enginesin the 75-130 kW and 37 kW =P = < 75 kW power ranges.Selective targetsExperience with HGVs and busesindicates that in urban cyclingconditions (in many respects similarto typical NRMM engine demands),PM filters (or “traps”) can“clog” the system and lead to regenerationproblems. JohanSporre, Scania’s product planningmanager, industrial and marine,notes that SCR technology (in usefor a long time at coal-fired powerstations), looks promising, althoughagain space may be a constraint(extra tank, muffler, etc).Cold climate conditions mayalso make it more difficult, addsSporre, as the urea:water (30:70)agent mix (called “Adblue” inEurope), freezes at -11 degC.Sophisticated EMS controlwill be needed for SCR. If theflow is not controlled properly,there is a risk of ammonia gascoming out of the exhaust. Perhapsthe biggest problem, however,is enforcement, since drivers willbe required to fill up the tank withthe agent and turn the system on.The price of Adblue is expectedto be about the same as dieselwhen it comes out. Even if theprice falls in real terms over time,perhaps price incentives are requiredto discourage “cheating.”There are no estimates yet ofAdblue consumption for typicalNRMM applications. For highwaytrucks, Scania has an indicativefigure of 0.05 litres for everylitre of diesel consumption, butmuch depends on the engine. ❏It’s a gas inGothenburgRenova AB, a waste and recyclingcompany in Gothenburg,Sweden, has introduced arefuse collection truck withgas-electric hybrid technology,developed in cooperation withVolvo Trucks, Norba and ETP.The gas engine has a catalyticconverter and thecompactor is electric-powered,greatly reducing environmentalimpact with lower fuel consumption,reduced emissionsand quieter operation.When the vehicle stops forrefuse collection, the naturalgas-powered engine stops automatically.Loading and compactingis then powered by theelectric motor. Measurementsshow that this type of rearloading refuse collection vehiclenormally is idling for 60-70 per cent of its shift.The vehicle meets forthcomingEuro 4 standards. “I'mconvinced that electric hybridtechnology will be the modelfor other heavy vehicles workingin our densely populatedurban areas in other industriesas well,” says Renova's CEOChristian Baarlid.Renova has received €1.3mill from the EU’s environmentfund (LIFE) to develop,evaluate and perform full-scaletesting of 10 electric hybridrefuse collection vehicles incentral Gothenburg. Theproject is being run togetherwith the City of Gothenburg.Renova is investing €2.8mill in 14 gas-electric hybridrefuse collection vehicles, fordelivery up to June next year- 10 from Volvo Trucks (6tonnes of refuse) and four fromMercedes Benz (10 tonnes ofrefuse). The Mercedes vehiclescan also empty containers andwill be equipped with waterhydraulics as well.Given that the engine cyclingand the lift of the wastetrucks are similar to mediumFLTs, does the system have potentiallywider application? ❏December 2003

WorldCargonewsPORT DEVELOPMENTNo turn left unStonedAs first reported in last month’sWorldCargo News (p9), independentconsultancy OneStoneIntelligence GmbH, based inBuxtehude, Germany, has publisheda new study, Container TerminalFocus 2007, which providesdetailed market indicatorsand forecasts.The study is divided into fivering-bound parts. It costs €2750although individual parts can beFigure 1: OneStone’s forecast of port container throughput by geographical area.OneStone itself points out that different assumptions about trends in transhipmenttraffic can have a significant effect on the figuresA new study on container trafficand market trends provides plentyof food for thought*purchased for less. All the dataare presented clearly and simplyand the text is supported bytables, colour graphs, bar charts,pie charts, etc. Part 1 is the executivesummary. Part 2 forecastscontainer traffic to 2007.Part 3 is concerned with quantitativeand qualitative benchmarksfor container terminals.Part 4 is divided into two subsections,dealing respectively withthe current container terminalhandling equipment and componentsmarket and its outlook to2007. Part 5 details new terminalprojects as well as expansions andupgrades up to 2007.Slower growth ratesOneStone forecasts that containerthroughput will growfrom 270m TEU in 2002 by anaverage of 5.9 per cent/year toreach 360m TEU in 2007. Incomparison, actual growth inthe 1997-2002 period averaged9.1 per cent/year. The slowergrowth in throughput, saysOneStone, will result in anequivalent slowdown in the rateof growth in demand for containerhandling equipment.New projectsMore than 300 new terminalprojects have been identified forthe period 2003-7 and morethan 50 have been identified forbeyond 2007. Roughly 35 percent of the projects concernnew terminals, 50 per cent arefor expansion of existing onesand the other 15 per cent areupgrades. The upgrades accountfor only three per cent of projectedcapacity increases.Setting new capacity againstthroughput, OneStone forecaststhat capacity utilisation rates in*Contact Daniel Schäfer, ProjectManager, OneStone IntelligenceGmbH for the report. Tel + 49 (0)4161 5568 -18 (Fax -27) e-mail:schaefer@onestone.deFigure 2: OneStone’s matrix for calculating container terminal capacity2007 will be practically thesame as in 2002 on a global basis.However, increases in utilisationin North East Asia (NEA)and South East Asia (SEA) willbe offset by falls in all other regions,particularly in Europeand the Americas (NSA). Thisbegs the question whether, inthe light of the excess capacitybeing created, some projects willbe delayed or cancelled.The upper limitsOneStone expects seaborne generalcargo to grow by 3.3 per centper year from 2003 –2007. Therate of containerisation of generalcargo will continue to grow (albeitat a slower rate than in thepast) and will reach 67.4 per centof general cargo shipments in2007 (61.6 per cent in 2002). Ofnote in passing, OneStone believesthat the upper limit for containerisationof general cargo shipmentsis 80 per cent.Significantly, as it is in contrastwith some other analysts,OneStone is forecasting thattranshipment will continue togrow strongly. On a regional basis,OneStone forecasts that theshare of transhipment in SEAwill be 41 per cent in 2007 (nochange), 37 per cent in MiddleEast/India/Africa (MIA) comparedto 33 per cent in 2002,30 per cent in NEA (27 per centin 2002), 17 per cent in NSA(15 per cent) and 29 per cent inEurope (28 per cent).Container trade data are alsoanalysed on a regional basis. Forexample, OneStone finds that in2002, more than 55 per cent ofNEA imports were intra-regional.Intra-regional NEAtrade equalled the total of NEAdeep sea exports to NSA andEurope. OneStone also forecaststhat the share of throughput ofthe top 100 container ports willremain at around 82.5 per cent- ie 297m out of 360m TEU in2007 compared to 226m out of270m TEU in 2002.Performance guidesOneStone’s performance benchmarks will perhaps be the mostinteresting for terminal operators.The “input” parameters aremore detailed and precise thanis usually the case for general releasereports of this kind, so the“outputs” may be assumed to berobust. In 2002, as a world average,1m of quay line equalled394 TEU/year throughput, butthe range is between 259 TEUm/year in MIA and 665 m/TEU in NEA. (But note that terminalsin parts of the Middle Eastachieve a quay performance twiceas high as the MIA average).Usually transhipment hubsachieve the highest quay performance(average 1200 TEUm/year within a range from>700 TEU to

BULK HANDLINGWorldCargonewsGrabbing the right choicesIn the past 20 years seaborne drybulk trades are estimated to haverisen by an average of 2.6 percent/year to reach 2.1 bill tonsworldwide in 2002. This rate ofgrowth was much slower thangrowth in general cargo trades,particularly containers, but neverthelesson a tonnes shipped basisdry bulks are second only to liquidbulks (2.25 bt) in importance.Obviously much dry bulkcargo is handled by continuousscrew, bucket, pneumatic or conveyortechniques but the grab remainsthe most universal conceptfor handling the wide range ofcargo types, from very wet to dry,dense to light, lumpy to powdery,etc. Grab designers have also beenable to adapt to tougher environmentalstandards. Suppliers such asNemag, Verstegen, Peiner andMRS Griefer, for example, nowoffer enclosed grabs for coal.Verstegen states that about 20per cent of its production of coalgrabs is now of the fully-enclosedtype. One recent delivery was fora 36 tonne floating lemniscatecrane at EMO, Rotterdam, althoughthis is primarily aimed atpet coke and has a special lip sealingsystem. Similarly, MRS explainsthat its designs are particularlysuited to finer, powdery coalswhere there is a danger of dustspillage. Normally, however, bigger(eg scissors) grabs suffice.Self-weightThere are probably no new debatingpoints about the merits ofparticular grab construction principles,but they do need to be airedfrom time to time to reflect whatis being said in the market. Oneissue concerns grab self-weightand specials steels to reduce it.For MRS Griefer, the startingpoint is always the SWL of thecrane and the throughput demandof the crane operator. UsingHardox or similar high tensile steelsaves weight and adds to payload.On the other hand if the grab istoo light, “diggability” problemsmight arise. The decisions need tobe taken on a case by case basis, inrelation to the nature of the products,the throughput required, thecrane speeds, etc.Biggest and heaviestThe biggest and heaviest coalgrabs in the world are the massive60 m 3 Nemag scissors grabs usedby EMO, Rotterdam on its two85 tonne Krupp gantry grabunloaders, rated at up to 4200 t/hin coal and up to 5100 t/h in ore.Fast cycle times are facilitated bythe fast closing times of the scissorsmechanism and the design isalso claimed to have a superiorclean-up capacity, minimising useof dozers and manpower.EMO also uses two smaller 50tonne grabs (self-weight and load)on two other Krupp gantry grabunloaders, similar to scissors grabssupplied by Nemag to other customersfor coal and ore includingDalian drives aheadTo achieve a shorter working cyclefor ore and coal handling atthe Port of Dalian, high speeddrives with optimal path controlfor hoist/grab and trolley driveswill be installed on two ZPMCgantry grab unloaders due for deliveryin March 2004. When inservice the unloaders will boast afree digging capacity of 3125 t/h.All of the ac drives are ofAlstom Inverter type MD 2000and have full, four quadrant, regenerativecapability. The total installeddrive converter rating is3000 kW with two main convertersfor energy feedback and dcbusoperation. The drives also featureso-called “harmonic free”IGBT input converters, whichAlstom says will bring considerableenergy savings for the port.In addition, the close control offeredby the drives enables thecrane operator to achieve moreaccurate and quicker positioningof the grab.At the heart of the automationsolution is a newly developed,high performance controllercalled ALSPA C80-HPC LogidyneD2. The technology has beencustomised for the ship unloadersand includes a sophisticated pendulumdamping control system,PDC 100, and a crane managementsystem called TDE 400.PDC 100 includes positionloop regulation for hold, close andtrolley drive as well as for antiswaycontrol and optimum pathThe question of whether special, high tensile steelsshould be used in grab construction to reduce massremains a lively debating point in the industryfinding. This means when the grabis opened the drive will operatewith so-called speed match - ieboth hold and close drive will beprovided with the same speed referenceand run synchronously.When the grab is closed, thedrives will operate with loadmatch - that is, the current referenceof the hold and close driveswill be compared and the speedreference will be adjusted until thereference values are equal, in orderto obtain almost the sametorque from both motors. PDC100 also facilitates grab calibrationafter changes of ropes and/or grabtype and offers anti-sway controlwith flying discharge.Backing up PDC 100, Alstomhas developed a crane data acquisitionand diagnostic system, TDE400. TDE 400 generates an onlinehome page which gives anoverview of the unloader andcharts in real-time the grab motionbetween the ship hatch andthe hopper. According to Alstom,TDE 400 can monitor 256 processvariables on-line and monitorup to 400 possible faults.This capability is reinforcedby a number of help screenswith information about possiblecauses of faults, requiredtools and spare parts as well as apost-mortem facility for analysisand tracing of faults. TDE400 can also produce data thatcan identify trends in operatinghours as well as idle time. ❏sticky ores, such as EBHI, Gijón.While MRS’s position on HTsteels is essentially a “neutral” one,one of the foremost exponents ofHT steels is Verstegen. The companyconcedes that they will add5-10 per cent to the price of agiven grab compared to usingconventional, mild steels, but thisis more than made up by theweight saving and the resultingincrease in material handled percrane cycle and hence the savingin time for the ship.The point of departure is thecapacity on the ropes of the crane.By way of illustration, Verstegentakes an 18 m 3 coal grab madefrom mild steel plate, with a selfweightof 12 tonnes. At 1 tonne/m 3 , this means 18 tonnes of coalper crane cycle. However, theequivalent grab in HT steel weighs1-1.5 tonnes less, so its volumetriccapacity can be increased to>19 m3 (say 19 tonnes payload).Take a 100,000 dwt collierbeing worked by two 30 tonneunloaders. With a peak cycling rateof 60 secs, this translates into 1080t/h for the conventional grab and1170 t/h for the HT steel grab. Inraw terms, one crane would take46 hours to unload 50,000 tonnesand the other 42.7 hours.Through-the-shipOf course these figures are hypotheticalsince the peak digging ratereduces as the cargo is progressivelyunloaded, due to factorssuch as the longer hoist/lower distances,less than full bucket, cleanup,etc. Typically, a factor of 0.55-0.56 must be added to arrive atthe through-the-ship rate.This results in 72 hours for theconventional grab and about 66hours for the HT steel grab - aRozzi is designing a new 19 m 3lightweight grab for coal and claysaving of almost half a day whichcan be significant in relation todemurrage costs in the range ofUS$20-30,000/day for colliers inthe 100,000 dwt range. So thepayback period for a grab costing€3-6000 more than a conventionalgrab is very short.Verstegen also dismisses thenotion that because HT steel is“harder” it causes more damagewhen the grab hits the ship thanmore “giving” mild steel. A grabis a massive object and will damageitself and the ship whateverthe material used and, moreover,the critical factor is the speed ofimpact in any case.It may be easier to open aheavier grab when it is empty andsuspended in the air, but the differenceis exaggerated, addsVerstegen. The force can work outat around 180 kg per pulley (1.5tonne grab weight difference,three pulleys per closing rope), butthe overall geometry of the grab,the location of the articulationpoints, etc have to be taken intoaccount. The real difference maybe just 50 kg per pulley.Another supplier, Rozzi inItaly, specialising in electro-hydraulicgrabs, also claims that useof anti-wear and high-resistantsteels has permitted both a reductionin grab weight and an increasein life time. At present Rozzi isdesigning a new 19 m 3 grab todischarge coal, clay and other materialsin the Port of Ravenna. Thiswill require some changes fromRozzi’s standard designs and thetimes will be made almost completelyfrom high-resistant steel toachieve even lower self-weight.Not light-headedPeiner Grabs (SMAG), on theother hand, emphasises the needfor the grab to have a certain minimumdead weight, certainly forrope grabs, and it recommendsconventional high quality steel (St52-3). If the grab is too light, saysPeiner, there is a danger of theropes having a poor contact withthe sheaves when an empty grabis being closed, resulting in highrope and sheave wear. In total, saysPeiner clamshell (VSG) grab with dust protection coversPeiner, conventional steel providesfor longer grab life than HT steel.Peiner also notes a growingdemand for maintenance-freegrabs, for which it offersMangachoc or Oiles 500 bearings.It usually recommend, however,standard bearings (mangam hardsteel), which are proven and resultin low life costs.Another advantage of a maintenanceregime is that the grab ischecked from time to time. Smalldamages can be picked up and addressedand there is more securityin operation. Maintenance takesonly a few minutes in any case.There is also a trend towardsrefurbishment as opposed to buyingnew. However, says Peiner, itis only cost-effective when thebasic structure of the grab is stillin good condition. This means thatusually only older grabs with fewoperating hours are suitable forrefurbishment. Motor, pump, liftingcylinders are changed in motorgrabs and the whole hydraulicsystem in single rope grabs. InPeiner’s view, the “fashion” for refurbishmentwill not last, becausebuying new is a better solution. ❏December 2003 25

WorldCargonewsCONTAINER INDUSTRYContainer floors up a gum tree?Despite the best efforts ofthe environmental lobbyto halt the destruction ofthe world’s tropical rainforests, andrestrictions imposed on loggingactivities in the main producercountries, apitong plywood remainsthe flooring material ofchoice in the container industry.That it is still available in sufficient- albeit fluctuating - quantitiesat an acceptable price - currentlyaround US$470/m 3 orUS$170 per TEU set - can belargely explained by the increasinglevel of illegal logging takingplace in Indonesia, which haslong been the main source ofapitong used for box floors, andthe exploitation of “new” sourcesof supply in Surinam, Cambodia,Myanmar and elsewhere.This situation has brought itsown problems, however. Accordingto industry observers, increasingly“immature” trees are nowbeing logged, with the result thatthe quality and performance ofapitong plywood floors can nolonger be guaranteed. Notwithstandingthe publication in 2002of the Institute of InternationalContainer Lessors (IICL)’s PreferredStandards for Hardwood PlywoodFloor Panels, which is designedto ensure that only plywoodflooring of the highest qualityis used in new container production,failures during factoryload testing and in-service arecontinuing to occur.All the signs are that the availabilityof apitong plywood of therequisite quality, which is alreadytight, will become increasingly soin the near future. If ever there wasa need for an environmentallyfriendly- or at least less environmentally-damaging- alternativeto apitong, therefore, it is now.If the price is rightFinding an alternative thatmatches the technical performanceof apitong is one thing. Findingone that can be produced at aprice that the container industryis prepared to bear is, of course,another. Numerous technicallypromisingmaterials have beentried over the past few years, onlyto have failed to make inroads inthe market on price grounds.But all that may be about tochange. Following extensive trialsover the past 18 months, ChinaCould eucalyptus plywood proveto be the answer to the containerindustry’s flooring prayers?International Marine Containers(CIMC), the world’s largest boxbuilder, believes it has come upwith an alternative to apitong plywoodthat meets both technicaland price criteria and is availablein abundance.The new floor is manufacturedfrom eucalyptus - better knownperhaps for the “gum leaves” thatprovide the staple food of koalas.According to CIMC, 10 year oldeucalyptus trees from managed forestsin Tasmania provide a hard,heavy, close grained wood that iseasy to peel and process into plywoodsuitable for box floors.Numerous trials at the XinhuiCIMC Container Flooring Co(XCFC) plywood mill, which wasset up in 1999 to manufactureapitong plywood flooring, have resultedin a floor made up of 21 pliesof eucalyptus to a standard 28mmthickness. A version using 19 pliesof eucalyptus sandwiched betweensingle plies of apitong, is also available.The veneers are glued usingphenol-formaldehyde resin and thefloor is glue line-treated with preservativeto latest Australian Quarantine& Inspection Services(AQIS) requirements.According to CIMC, 21 pliesof eucalyptus were selected, ratherthan the standard 19 plies inapitong plywood, in order to increasethe strength of the floor.Glue lines are generally strongerthan veneers, so adding glue linesimproves overall strength, thecompany explains.Tried and testedLaboratory, factory and field testshave proved the point. The newfloor, which has been certified byBureau Veritas, GermanischerLloyd, American Bureau of Shippingand China Classification Society,has successfully passed allstandard container flooring tests,including the ISO plus 33 percent (7260 kg) floor strength test,the IICL’s short span shear testand adhesive bond tests. The lattertwo were carried out in Augustthis year by US-based WoodAdvisory Services Inc.In all cases, says CIMC, theeucalyptus floor showed resultsequal to, or better than, apitongplywood. In one floor strength testcarried out for lessor Triton ContainerInternational, the eucalyptusfloor withstood 76 in/out cyclesof the 7260 kg test vehiclebefore it failed, where a conventionalapitong floor might withstandaround 27 passes.As of the middle of November,15,000 TEU of containers hadbeen fitted with eucalyptus plywoodflooring for customers including,Maersk Sealand, P&ONedlloyd, Hapag-Lloyd, HamburgSüd, NYK and lessorsTransamerica Leasing, Triton,Textainer, Interpool, GE SeaCoand Cronos.P&O Nedlloyd has had around2000 TEU in service since April ofthis year, including both theapitong-faced and all-eucalyptusversions. Though it is too early todraw firm conclusions about longterm performance, a spokesman forthe company said that initial resultslook “very promising.”Maersk Sealand, the world’slargest container operator, certainlyappears convinced of the merits ofthe new floor. Some 50,000 TEU,scheduled for delivery before theend of this year, will be fitted withthe apitong-faced eucalyptus floor.Guaranteed supplyAs indicated earlier, there is noshortage of the four main speciesof eucalyptus suitable for use incontainer flooring (eucalyptusglobulus, oblique, regnans anddelegatensis) and it is understood thatMuch loved by koalas, eucalyptus couldalso solve the container industry’sflooring problemsForestry Tasmania, which is responsiblefor the management of stateforests in Tasmania, has guaranteedCIMC continuity of supply.The XCFC mill in Xinhui iscapable of producing around360,000 TEU sets/year of plywoodflooring. There are also indicationsthat CIMC may be planning toestablish a second plywood mill inthe Shanghai area with a similarannual capacity. If that proves to bethe case, the company will be in aposition to meet over 70 per centof its own annual flooring requirement,which represents close to 50per cent of the world market, withthe eucalyptus floor.CIMC itself has not releasedany pricing details for the newfloor. Crucially, however, a numberof users indicate that it is within 5per cent of the current cost ofapitong flooring.Bamboo promiseThe development of CIMC’s eucalyptusfloor is not the only goodnews for the container industry. Itwas revealed at last month’sIntermodal Transport and Logistics2003 exhibition in Rotterdam, thata new company - Nantong NewPreliminary tests in South Africa indicate that the TainaDek composite floorcan match apitong plywood for strengthAtlantic Forest Industry Ltd(NNAFI) - has been set up byHong Kong and Chinese investorsto produce a new type of bamboo/pine composite plywood floor.Significantly, a consultant tothe NNAFI project is WilliamChan, who was behind the developmentof the Greentech bamboo/pinecomposite floor, manufacturedin China by JianouGreentech Boards Industry Co,which was widely acknowledgedto have been the most promisingalternative to apitong in terms ofenvironmental acceptability, technicalperformance and price.As previously reported inWorldCargo News, it was only a limitedproduction capacity of around2000 TEU sets per month that preventedGreentech from being morewidely adopted. In the event, plansfor a major increase in capacity in2001 were scuppered when a qualitydefect in the pine core materialled to a large batch of Greentechfloors being rejected. Nervous investorswithdrew their support andJianou Greentech was forced intobankruptcy.According to Jerman Lau, aformer Florens executive who isin charge of marketing the newfloor, NNAFI is putting the finishingtouches to a new mill inNantong and plans to start trialproduction immediately after theChinese New Year holiday, withcommercial production slated tostart in the second quarter of 2004.The precise specification of thenew NNAFI floor has not yetbeen released but it will comprisea far higher bamboo content thanthe Greentech floor. The latterwas made up of a core of 19 pliesof Chinese red pine with 2mmand 1mm plies of bamboo top andbottom. Up to 70 per cent of thecontent of the new floor will bebamboo, Lau said.Initial capacity at the new millhas been set at 20,000 m 3 /year oraround 55,000 TEU sets. The price,Lau added, will be no higher thanthat of an apitong plywood floor.Composite approachThere has also been some movementon the composite floor frontover the past 12 months. KoreabasedChemfree Tech Co reportsthat Hanjin has had 6000 20ftboxes fitted with its “plastic” floorthis year, while MOL is trialling50 x 20ft units and another Koreanoperator, KMTC, has taken200 x 20ft units. Triton also successfullycarried out tests on theChemfree floor at the ShanghaiJindo plant this summer.The Chemfree floor is manufacturedin an extrusion processfrom cellulose fibres and modifiedpolyolefin resins. In-service andfactory tests have demonstratedthat it can match apitong in termsof technical performance, anddownstream M&R cost advantagesare clear. Hanjin has beenmonitoring the M&R cost ofequipment fitted with theChemfree floor since 1999 and sofar it has proved to be nil.Nevertheless, at aroundUS$1000/m 3 (or US$369 per 20ftset) price remains an issue. Accordingto J M Hur, president of ContainerNetwork Corporation,which markets the Chemfreefloor, the company is workinghard to reduce the cost of the floorby changing the ratios of the materialsused in its construction.Costs will also fall, of course,with volume production. Atpresent, Chemfree can produce1500 TEU per month, but that figurecan be increased rapidly accordingto demand, Hur said.Out of AfricaA new “engineered fibre” plankfloor has also been developed inSouth Africa this year. CalledTainaDek, it is manufactured fromdensified long pine fibres mixedwith a combination of waste andvirgin polymer resin and encapsulatedwith lubricants.Preliminary testing by theSouth African Bureau of Standards(SABS) indicates that the TainaDekfloor is comparable to apitong plywoodin terms of strength and iswaterproof and resistant to chemicals,fungal growth and mildew.Standard carpentry tools can beused to fit the floor and it is claimedto be maintenance free and 100 percent recyclable.The TainaDek floor was recentlysubjected to the IICL shortspan shear test, which showed thattransverse strength was virtuallyidentical to that of apitong plywood.Structural engineers haverecently been consulted to determinewhether the material can bestrengthened further.A number of operators and lessorshave reportedly been invitedto undertake trials with TainaDek.“From the preliminary results, weare confident that our product willcompare favourably with apitong,”a spokesman said. As yet, no pricingdetails have been released. ❏Bosdek is backProduction of Bosdek laminatedpine container flooring is to berelaunched in South Africa in thefirst quarter of next year.Tsitsikamma Laminated PineProducts, a new company formedby personnel from Boskor Sawmill(Pty) Ltd, the original manufacturerof Bosdek, has purchaseda laminating line from Sappi,which formerly operated at theClan sawmill in Natal, and is installingit at a new facility inGeorge to produce Bosdek aswell as other flooring productsand specialised beams.Boskor, which still manufacturespine doors and other nonlaminatedproducts, withdrewfrom the mainstream containerflooring market several years agofollowing a rapid strengtheningof the rand against the US dollar,which made it uncompetitive inthe export market.Though not a major player inthe container market in recentyears, Bosdek laminated plankflooring, which is manufacturedfrom slow growing, high densityCape pine, has been installed inmany thousands of containerssince 1975 and was particularlypopular with European shortseaoperators. Though extra thicknessis required to meet ISO plus 33per cent floor strength requirements(32mm against 28mm forapitong plywood), it is still significantlylighter than apitong.Initially, Tsitsikamma will beservicing the repair market forcontainers already fitted withBosdek flooring, and targetingniche markets such as open topsand European domestic containersand swap bodies. Capacity forcontainer flooring at the Georgemill is put at 12,000 m 3 oraround 28,000 TEU/year.As far as price is concerned,Tsitsikamma says that Bosdekwill be available at US$625/m 3or US$270 per 20ft set for the32mm thickness. Worldwidemarketing of Bosdek flooring isbeing handled by UK-basedGlobaldeck, while BrancifortiTimber Agency is handling theItalian market ❏26December 2003

CONTAINER INDUSTRYWorldCargonewsDesiccant suppliers absorb new businessWorld production of containerdesiccants is continuingto rise in linewith growth in demand. As the performanceof the most commonlyused desiccant materials (mainlycalcined clay and anhydrous calciumchloride) has been improvedin recent years, so has their use becomeincreasingly prevalent in theprotection of many types of containerisedfreight. Indeed, just aboutany product being shipped fromequatorial regions to cooler temperatezones, where ambient temperaturesmay vary by up to40degC, can benefit from the useof desiccants.This is because of the substantialprecipitation of moisture thatoccurs within the container oncethe internal temperature and humiditylevels start to fall. Tests haveshown that over 20kg of watervapour can be trapped inside a 40ftcontainer, at the start of a voyagefrom the tropics, either within theheated atmosphere or held by timberdunnage and pallets, the containerfloor,or even by the consignmentitself. Much of this willcondense out if the temperaturefluctuation is great enough.Insurance claimsCondensation damage still accountsfor numerous cargo insuranceclaims and a combined annualpayout of many millions ofdollars. Against this, even the mostcostly desiccant treatment is hardlypunitive. The approximate pricefor treating a loaded 20ft containeris put at around US$30-50 dependingon the degree of protectionrequired.The most expensive desiccantversions are of the “trap” type orthose bagged in Tyvek laminatematerial (from Dupont), whichhas the ability to draw in moisturethrough its micro-porous cellularstructure, but not allow it toescape again. The growing use ofTyvek, as well as desiccant traps,has eliminated the criticism levelledat earlier types of containerdesiccant, which tended to drip orleak once saturated.Desiccant efficiency has alsobeen enhanced in recent years, asdesign/manufacture has becomeincreasingly technologically focused.However, competition betweendesiccant suppliers is moreintense than ever as more andmore companies have started toproduce their own brands or marketexisting products on behalf ofothers. In addition to the establishednames in the US andNorthern Europe, headed bySüd-Chemie Performance Packaging,Desiccare Inc and AndersBendt, suppliers are today activeelsewhere in Europe, South Africa,Australia and across Asia.China now claims a numberof desiccant producing firms,which is a clear indication thatthis formerly specialised businessis fast entering the mainstreamand that sales volumes are mushroomingglobally.Natural productsMost container desiccants are stillof the calcined or “molar” claytype manufactured from naturallyoccurring materials. This has longbeen preferred to silica gels, whichhave lost favour in container applicationsbecause they lack thestrength or capacity to work continuouslyfor long periods.The success of Anders Bendt,for example, can be attributed inpart to its ready access to suitablevolcanic mineral in Denmark.Stopak in South Africa has similarlybenefited from locally occurringclay deposits, as has LevosilGlobal demand for container desiccants is continuingto grow as designs are further refined and performanceimproved. The number of active desiccant suppliersis also expanding apacein Italy. Others to have exploitedlocal mineral sources are Silgel inthe UK, Scangaule in France andAustralian Warehouse Solutions(AWS) in Australia. All such companieshave long produced containerdesiccant ranges.Most mineral desiccants arebaked under controlled conditionsto enhance their moisture absorbingproperties, while some manufacturersincorporate anhydrouscalcium chloride or otherhygroscopic chemicals into themix to further boost effectiveness.Other desiccant producers, includingsome of the more recententrants, have opted to use heatdriedcalcium chloride in isolationbecause of its very high affinity forwater and relatively low manufacturingcost. As with clay versions,this desiccant material is environmentallysafe and easy to disposeof after use, although its does havesome irritant properties.Caught in a trapA pioneer of the use of pure calciumchloride was Absormatic, ofSweden, which was one of the firstto launch an all-purpose containerdesiccant using this material in1995. A further innovation was itscreation of a plastic/compositetube or trap to capture all themoisture absorbed, which replacedthe traditional bag.This concept was initially developedand patented by Swedishinventor, Bror Gustafsson andit has since been modified andmanufactured in various guises byother firms. Absormatic ended allproduction in 2002, whenGustafsson terminated his licenceagreement with the company, althoughhe has since entered intoa new manufacturing collaborationwith AB Sorbero (also ofSweden) and introduced a furtherupgraded version of the originalAbsormatic desiccant tube design.This cooperation has more recentlyinvolved the sale of all existingpatent rights, together withthe earlier patent, to AB Sorbero.The Hydrotrap is the neweststyle of calcium chloride desiccantpole. It has been manufactured byAB Sorbero since late 2002 and ispatent protected in more than 20countries. As explained by salesmanager Dag Tryggo, all productionand marketing is carried outin Sweden, at the company’s headquartersat Trollhattan, and sales arecurrently strong within Europe,including Sweden, Germany,France and Estonia.The Hydrotrap is also beingsold into Asia (mainly throughHong Kong) and Australia. Aswith previous versions, theHydrotrap is activated once it isremoved from its sealed packagingand is designed for hangingwithin a corrugation recess of thecontainer side panel. This notonly occupies a minimal space,but avoids accidental damagefrom FLTs etc.Each pole will remain activefor up to 90 days and absorb amaximum of 1.5 litres of water.There is no risk of any overflowas the tube can hold a maximumof three litres. The device worksbest when some free space is leftaround the absorption area, tomaximise air flow into the unit.Crucially, the container needs tobe wholly sealed, by shutting offall ventilation grills, in order toTrap-type desiccants, like the Absorpole from Absortech International, nestle inthe container sidewall corrugations where they are protected from damageprevent further moisture-laden airfrom entering during the voyage.Poles apartOne local competitor to ABSorbero is Absortech InternationalAB (formerly known as Exsicator),which earlier developed its ownmodified version of the originalAbsormatic desiccant pole and hasbeen in production for aroundtwo years. It has since launchedseveral other innovative desiccantproducts/aids and plans more. Thecompany has a number of ex-Absormatic personnel on its managementteam, including RalfJersby and Peter Klarin.The original pole design isstyled Absorpole, and it also functionsby collecting the downwardflowing water as it is captured andreleased by the calcium chloridedesiccant positioned at the top ofthe trap. The desiccant materialgradually dissolves into the absorbedwater and so eventually endsup in solution within the trap area.One change adopted byAbsortech for its Absorpole wasthe use of a relatively large chargeof calcium chloride, with 1.3kgoffered as standard. This can absorbup to 2 litres of water andnecessitates the use of just 4-8poles per 20ft box depending onapplication. The pole is made fromfully recyclable polyethylene andpolypropylene materials.The company has more recentlylaunched Absorbag, whichis of slightly larger capacity thanthe Absorpole and also designedfor mounting by hook within thecontainer’s corrugations. It carriesa charge of 1.5 kg of calcium chlorideand each bag can remove upto 2.25 litres of condensed water.Another product is theMinipole, which is of smaller dimensionand capacity and capableof absorbing up to 1 litre ofwater. The company is meanwhileplanning to launch Absortop earlyin 2004, which is claimed as thefirst to have been designed specificallyfor use in bulk containers.It is suited for fixing securelyto the interior roof section and requiresonly a few inches of airspaceto function.A super-active version is alsoto be made available for shortervoyages where ambient temperaturesvary greatly and so create difficultconditions. The product hasa short operating life, but “worksvery hard” while active.In a new development,Absortech has created an associatedcompany, Esorb, to supplysmaller desiccant packages forplacement inside cartons andcrates. Esorb will provide a widerange of mineral desiccants insealed pouches of different sizesand also a new type of environmentaldesiccant made from organicfibres.Among other productlaunches is the company’s Absorvent,which has been designed toprevent the entry of externalmoisture through the container’sventilation grills and so cut internalhumidity to a minimum.Simulated tests have shown thatthe Absorvent, when used in conjunctionwith a limited numberof Absorpoles, can maintain humiditylevels at around 30 per cent,as compared with nearer 80 percent for untreated reference containers.The Absorvent is also duefor launch early next year and isexpected to appeal particularly toshippers of metals and machinery.Efficiency measuresThese various product developmentshave been accomplishedalongside further research beingDecember 2003 27

WorldCargonewsCONTAINER INDUSTRYcarried out by Absortech into themechanics of water absorption byits desiccants over lengthy periods.The efficiency of the basicAbsorpole has been studied byusing Alfasensor Moisture IndicationStrips, which can be positionedthroughout the containerto give a clear reading of the waymoisture levels change throughouta typical voyage and so helppinpoint potential problems.Absortech can supply theAlfasensor strip through its distributionnetwork and suggests itis used routinely as part of a shipper’scontinuing QA programme.The company is now also makingits unique AbsorCalc softwarecommercially available for thefirst time. This enables end-usersto simulate various ambient voyageconditions, and measure theeffect of introducing differentamounts of desiccant into thecontainer, without actually testingreal cargo. Further refinementsare planned for this system,to enable changes in packagingand cargo characteristics to bestudied as well.The company sums up its recentapproach by underlining thatdesiccant requirement usually variesmarkedly between each application,and that the “one size fitsall” principle does not readily apply.Instead, Asbortech is nowcommitted to creating a range ofdesiccant and supporting productssuited for as wide an applicationas possible. The manufacture ofmost products is still carried outin Sweden, with some manufactureof Absorbag in Indonesia forthe Asian market.The automated productionprocess in Sloinge (Sweden) is currentlybeing doubled in size, tokeep pace with demand, with thenew Absortop manufacturing linecurrently under construction. Atthe same time, Absortech has furtherexpanded its global distributionnetwork and is now representedin over 25 countries.Far East fortunesOne other producer of the poletypedesiccant is Super Dry International,headquartered in Singaporeand Indonesia, which hasbeen active since 2000. The companymanufactures its V2 desiccanttrap mainly in Indonesia, and hasrecently planned a second facilityin Vietnam.The V2 utilises a 1kg chargeof calcium chloride, which is ableto absorb moisture equivalent to150 per cent of its original dryweight. The resulting solution istrapped in a 2 litre reservoir, comprisinga triple skin assembly.The company has also morerecently introduced a smaller sachetversion, known as Dry Sac,for incorporation into cargo packagingor hanging garments. TheDry Sac is available in sizes fromjust a few grammes to 500g. SuperDry reports strong growth indemand for its various desiccantproducts throughout Asia.In the bagAs indicated earlier, Denmark ishome to one of the most establishedproducers of container desiccants,Anders Bendt, which continuesto market its proven Dry-Bag range worldwide. All productionis still carried out at the company’smain facility at Aarhus.The latest generation, Dry-BagIII, has recently been introducedand is being targeted at end usersrequiring small-scale amounts ofdesiccant. It follows the earlierlaunch of Dry-Bag II in 2001,which utilises a Tyvek packagingand is totally dust proof. Dry-BagII is available in all sizes from 25gto 2kg, with built-in lanyards foreasier positioning, and the 500g and1kg versions have proved popularwith producers/shippers of machineryand electronic goods.Another variation is the company’sHang-Bag, which was developedseveral years back as a lowcosting and easy-to-apply versionof the Dry-Bag. This is suited forprotecting bulk cargoes, such ascoffee and cocoa beans, as it canbe attached to the container roofand positioned above the load.The entire Anders Bendt rangeuses a naturally occurring molarclay, which has been its staple desiccantmaterial for over 20 yearsand is claimed by the firm to bemore environmentally friendlythan chemical desiccants of thecalcium chloride type. It is completelynon-toxic and can be disposedof as normal householdwaste. It is also claimed to be less“aggressive” than chemical versionsto cargoes such as foodstuffs.Upwards of four 2kg bags ofthe standard Dry-Bag are requiredfor a typical 20ft box application.Each bag can absorb up to 76 percent of its dry weight over a longperiod, and none will drip evenwhen totally saturated.Anders Bendt further statesthat, in comparison to the growingrange of water-absorbingpoles, the Dry-Bag remains farsimpler and more cost-effective touse. The bags can be fitted orplaced into any void space withinthe container and are not just confinedto the corrugation recesses.On the limitLevosil, based in Italy, is anothersupplier of container desiccantsmade largely from naturally occurringminerals. It has limited thecalcium chloride content of itsContainer Dry product to below20 per cent and so avoided theneed to label it as an irritant whensold in Europe, as required by EUregulations introduced in 1999.Annual sales of Container Dryare continuing to grow, with theSüd-Chemie’s Container Dri II eliminates moisture damage on canned goodsmajority concerning bags of astandard 1kg size. Tests carried outrecently by Levosil indicate thateach bag of this size will absorbup to 550g of water vapour, whenexposed to 80 per cent relativehumidity at 25degC. It is recommendedthat, for deepsea transport,one bag is used for each 1ftlength in the container, ie a totalof 20 per 20ft and 40 per 40ft.Stripped for actionSüd-Chemie Performance Packaginghas long been one of thelargest producers of desiccants inthe US, if not globally, for containertransport applications. Salesof its Container Dri II are continuingto grow strongly, with the“strip” version, introduced twoyears ago, gaining rapidly inpopularity.Süd-Chemie marketing managerMark Florez said that the rangeof products protected is increasingwith each year, with just about alltypes of commodity, including steel,canned and timber products, nowtested with the desiccant. He explainedthat Container Dri II comprisesa formulation of natural mineraland chemical substances thathave a capability of absorbing moistureequivalent to almost threetimes their dry weight to form athick gel.The desiccant can stay activefor a maximum of 60 days and iscontained in a Tyvek film bag, fittedwith adhesive backing for securingto the inside of the containerwall. The Container Dri IIStrip features six 125g bags affixedto a single backing sheet, whichfits snugly between the corrugationsof the container sidewall.Around 5-6 of these strips aretypically required per 20ft unit.In addition to simplifying thewhole installation procedure, theuse of these strips also better distributesthe desiccant through thecontainer and so helps improve itsperformance.Well establishedAnother US supplier, Desiccare Inc,continues to produce its well establishedCargo DryPak containerdesiccant. The latter, which similarlyuses a base material of calcinedclay, remains active for over 50 daysand can absorb moisture greaterthan its entire dry weight. It alsocomes in a Tyvek bag and is availablein 500g-1.5kg sizes.In the US, Cargo DryPak ismarketed by Dry Pak Industries,which was founded in 2002 byformer personnel from Dessicareand has since greatly expanded itsrole as a consultant to shippers ofsensitive high-value commodities.In India, Cargo DryPak is currentlybeing marketed/soldthrough Swambe Chemicals (locatedin Gujarat State) and its sisterfirm, Sorbead India. Swambe hasbeen manufacturing silica gel andother types of industrial desiccantsince the early 1970s and is todayincreasingly targeting its productsat logistics and transport end-users.The company states that containersshipped from ports in India canexperience some of the largestchanges in internal temperature andrelative humidity found anywherein the world, with the former varyingby as much as 50degC and thelatter falling from around 95 percent to just 15 per cent during a20-40 day voyage to more temperatezones. As such, there is paramountneed to make local exporters/importersmore aware of theavailability of custom-made desiccants,such as Cargo DryPak, andadvise them on their proper use.Heading northContainer shipments from SouthAfrica are similarly prone to largechanges in their ambient condition,because most move onnorthbound routes and thus crossthe equator. Local firm, Stopak PtyLtd, has been producing its ownbrand of container desiccant inCape Town since 1996. In addition,the company offers a completerange of silica gels and humidityindicator cards.Stopak was prompted to startits own manufacture, when therequisite raw materials were foundto be available in abundance locally.It had previously importeddesiccants to supply the local exportmarket, but found them tobe of variable quality.Stopak currently producestwo basic desiccant types. ProDriis made from high performancecalcinated clay activated with calciumchloride and can absorbover 50 per cent of its dry weightin water at 30degC in 80 per centrelative humidity. It is being targetedat those container shipmentsexposed to more extremeconditions.ClayDri comprises dried bentoniteclay and is thus chemicallyinert and harmless. The productcan be supplied in Tyvek or kraftpackaging, and meets US specificationMIL-D-3464E. One unitof this desiccant (typically 30-40g)will absorb over 6ml of water at40 per cent relative humidity (at25degC).Stopak has also established itsown consulting arm and liaisesclosely with end-users in an effortto enhance design and further reducecosts. Its bagged containerdesiccants are now fitted as standardwith a clip-on hook to facilitateeasy installation, while they areguaranteed not to leak once saturated.Delivery to end-users hasbeen optimised by packing/supplyingthe desiccant in 20 tonne container-lots.Amongst prominentusers of Stopack desiccants are theFMCG Group, Proctor and Gamble,Hewlett Packard, Volkswagenand Coca Cola.Stopak desiccants are exportedto Europe, the Americas, the MiddleEast/Africa, South East Asiaand Australasia. Marketing for theAustralian region is now handledby JMP Holdings, which is anothercompany to report increasinginterest from shippers. JMPmarkets desiccants from Stopak, inconjunction with dunnage bagsfrom the South African supplier,and has gained recent businessfrom local wine and steel producersand paper and flour mills. Theoffering of custom-made dunnagefurther aids the combat againstinternal condensation as it replacestimber packaging, which is oftena big source of trapped moisture.Stopak’s ProDri desiccant hasattracted particular attention, asJMP’s own tests have revealed anability to absorb up to 80 per centof its dry weight in water. By comparison,the more traditional silicagel achieved just 30-40 per cent.Chinese inroadsAs mentioned earlier, China is alsostepping up its involvement in themanufacture of industrial desiccants,with a number of companiesnow offering their own formulationsto the booming localexport container market and increasinglyto customers overseas.Zhongyuan Co is located closeto Guangzhou and has recently introducedthe “Welldry” containerdesiccant, which features montmorilloniteclay as its main constituent.This forms part of a largerspread of over 200 different desiccantproducts, which are designedfor industrial end-use andmade from dried clay, silica gel,calcium oxide or activated carbon.Zhongyuan’s container desiccantcomes in three bag sizes -250g, 500g and 1kg - and is capableof absorbing water up to 70per cent of its dry weight. It alsostays active for periods of morethan 45 days and is completelynon-toxic. A number of bag materialsare available, ranging fromspun-bonded Tyvek and high densitypolyethylene to heat-sealedand coated kraft papers.Ru Shan Dayang Silica Gel, asits name indicates, is continuingto focus on the manufacture ofsilica gel and has also traditionallyfocused on the domestic market.However, it has more recently establishedrelationships with tradersin the US, Japan, Taiwan andHong Kong, and is currently applyingfor ISO 9002 accreditationto further enhance its standinginternationally.The company is located inShandong Province, close to Yantai,and has been in production for almost20 years. It currently employsover 300 workers, producing over7,000 tonnes of desiccant per year,and works in cooperation with localresearch company, SichuanTianyi Science Co.The Dayang silica gel containerdesiccant is available in twosizes, 100g (SG19-100) and 125g(SG19-125), and can be bagged ina wide range of materials, includingplastic film, composite paperor adhesive-backed fabrics. Thecompany recommends that up to40 x 100g bags (or 32 x 125g)should be used per 20ft container,with these amounts doubled for a40ft unit.Despite the fact that silica gelis no longer selected for the majorityof container desiccant applications,Ru Shan Dayang hascarried out independent tests andclaims that its product will workwell provided the change in ambientis not too great. For largerswings in ambient (greater than15degC), it advises that a largeramount of desiccant should beused. ❏28December 2003

WorldCargonewsTANK CONTAINERSConsolidation looms for tank operatorsDespite the lip service paidover the past decade tothe noble idea of longtermpartnerships between chemicalshippers and their logisticsservice providers (LSPs), not muchprogress has been made.This is especially true in thetank container sector. With upwardsof 100 different tank operatingcompanies offering transportservices, shippers find it advantageousto play the field. Businessstreams continue to be putout for tender on a regular basisand, with a large number of biddersfor each contract, logisticsactivities remain fragmented.Most chemical producers utilisea portfolio of tank container operatorsat any one time and preferto maintain the traditional“spot cargo,” cost-driven natureof the tank business.Cut-throat competitionThe end result of this scenario isthat freight rates remain depressed,even though the volume30Although most tank container operators are reporting increased levels ofbusiness and ordering new tanks, they are still unable to secure acceptablerates of return. Mergers and acquisitions may offer the best way forwardof product carried in tank containersis growing more stronglynow than at any other time in recentyears. An indicator of thestrength of US chemical exports,for example, is given by the factthat there is a shortage of emptytanks in the US Gulf. Elsewhere,intra-Asian use of tank containersis now approaching the samelevel of magnitude as transatlantictraffic - for many years themajor deepsea trade lane.Despite these positive signs,competition amongst tank operatorsoffering deepsea services remainsintense, not least in thecommodity chemical sector. Operatorswith specialist tanks fordifficult, sensitive and particularlyhazardous chemicals are faringsomewhat better.Europe, the other major tankSome 400 new tanks have been added to the Bertschi operation in 2003container operating arena, is alsothe subject of constant rate erosion,as typified by the very aggressivepricing now pertainingfor UK/continent business.And despite the growth in thenumber of European swap tanks,offering payloads similar to thoseof competing road tankers,intermodal routing opportunitiesare still being limited by lack ofinvestment in the railways.Intermodal tank operatorsalso point out that more shortsealinks are required, if road congestionin Europe is to be eased. Roroservices between Spain in thesouth and the UK and the Beneluxcountries in the north havebeen identified as being in needof strengthening, while tank operatorswould also like to seemore Baltic Sea services linked toRussia.Consolidation pressureConsolidation amongst the ranksof tank container operators todate has been relatively limited,and certainly to nothing like thescale within the chemical producercommunity. But the pastyear has shown operators thateven a pick-up in trade levels hasnot been enough to ensure adequatereturns on capital employed.Under such circumstancesfurther consolidation in the transportindustry will be necessary. Iffor no other reason, larger fleetsof tank containers are needed tomatch the expanded logistics requirementsof the newly mergedchemical majors.Of course, it takes two totango, and tank operators, fortheir part would like chemicalshippers to be more open to thecustomised, “global” logistics solutionsthey are able to offer.Tank operators complain thatthey must often deal with newlogistics officers at the chemicalproducing companies, who simplydo not have the same awarenessof the benefits offered bytank containers as their veteranpredecessors.Safety factorWhile cost may remain the primarydriver, safety is also a toppriority issue for the chemical industry.An examination of theEuropean chemical transportsafety record over the last decadeshows an overall positive trend,with the accident rate today wellbelow that of the early 1990s.However, in the past few years aworrying development has becomeapparent. Even though thenumbers of accidents are at historiclows, they have begun tocreep up again.Against this background, thechemical industry has identifiedtransport safety as the subject ofits latest initiative in ongoing effortsto continuously improvesafety performance.In recent months the EuropeanChemical Industries Council(CEFIC) and the EuropeanChemical Transport Association(ECTA) have been jointly developinga behaviour-based safety(BBS) programme for drivers ofvehicles operated by logisticsservice providers (LSPs) active inthe chemical sector.In addition to eight leadingchemical producers, the workinggroup compiling the BBS guidelinesincludes representatives ofeight LSPs - Bertschi, De Rijke,Dentressengle, Den Hartogh,Hoyer, Suttons, DFDS andHaesaerts.These LSPs will lead in theimplementation of the new drivertraining regime, but it is aimed atall European chemical transportcompanies. Industry-wide applicationwill be assisted by the decisionto assess BBS implementationwhen LSPs are checked fortheir compliance with the SQASRoad safety and quality scheme.Suttons specialisesLike many operators of small-tomedium-sizedfleets of tanks,UK-based Suttons Internationalis in the process of renewing andexpanding its fleet. The companyhas a business portfolio that involvesthe movement of specialistliquids and gases for its customerson both deepsea routesand in Europe. As a result, thenewbuilding programme includesboth ISO and swap tanks.Over the past two yearsSuttons has spent over £6 millon almost 500 new tanks. In thedeepsea sector the emphasis hasbeen on 26,000 litre units to replaceolder, smaller-capacitytanks, while the swap tanknewbuildings have been orderedLyondell Europe is revamping itsstyrene monomer distributionactivities, switching from a roadonlyoperation to intermodaltransport and outsourcing thebusiness to De Rijke VloeistoftransportBV and HaesaertsIntermodal BV, two specialistlogistics service providers for theEuropean chemical industry.Styrene will now be transportedfrom the company’smanufacturing plant at theMaasvlakte in Rotterdam, a jointventure with Bayer, to Europeancustomers using a network ofcontainer hubs and a fleet ofdedicated 30ft tank containersmanufactured by Van Hool ofBelgium. The use of dedicatedtanks will obviate the need toclean the units after each deliveryand the size of the sidebarprotectedtanks will enablemaximum payloads of 30 tonnesof styrene to be transported.“The key change in this newdedicated container hub-baseddistribution network is that wedisconnect our customer salesorders from the plant loadingorders,” states Marc Quintus,Lyondell’s supply chain Europedirector. “This allows us notonly to optimise our loading facilities,but also schedule our deliveriesin the most efficientto augment existing tanks in theEuropean fleet.During 2003, Suttons hastaken delivery of 152 ISO tanksfrom Consani and Welfit Oddy,50 swap tanks from UBH and anumber of specials, including gastanks, lined tanks and electricallyheated units. In addition, severalof the company’s oldest tankshave been rebuilt.“Our concentration on thespecialist end of the market hasstood us in good stead, becausethe commodity end of the businessremains cut-throat.” saidChris Trett, managing director ofSuttons International. “Eventhough rates overall are not great,profits over the past six monthshave been in line with expectationsand we are in healthy blacknumbers.”Suttons is continuing to expandits global coverage, and isseeing particular volume growthin China and India. In response,the company recently opened anoffice in Tianjin and strengthenedits agency position in India.“The shift of chemical productionto China and India thatis currently taking place will alterthe basic characteristics of globalsupply chain flows within afew years,” Trett added. “As such,it poses a major challenge for alltank container operators.”Subcontinent risesOne operator with a wide understandingof the potential fortank containers in trade with theIndian subcontinent is GoodrichMaritime Pvt Ltd of Mumbai. Althoughthe LSP has only beenactive in tank operations for oneyear, the company’s managershave extensive knowledge of thevarious relevant importers andexporters in the region.In 2003, Goodrich Maritime,has taken a total of 43 tanks onlease. “We are the only companyin India with tank containeragency, leasing, operations andLyondell styrenegoes intermodalmanner using other transportmodes, including inland bargingand rail.“In addition to being costcompetitivewith direct road deliveries,multimodal transport offersmany environmental andother commercial advantages. Byusing the container hubs as stagingposts close to our customers,we will be able to reduce theroad transport requirement by58 mill tonne-kilometres, or 70per cent,” Quintus adds.The tanks, which are currentlyunder construction, willbe outsourced to De Rijke undera long-term lease agreementwhile Haesaerts will operate thecontainer hub network. Eachyear several thousand containerloadswill be shuttled by inlandbarge from the Maasvlakte plantto a central container hub locatedon Zeekanaal, south of thecongested road network thatcovers the Rotterdam-Antwerpregion.From there the loaded tankswill be transported across mainlandEurope to a network of containerterminals situated close tothe styrene customers using overnightrail shuttles. Thereafter, thetanks can be delivered to thecustomers’ premises as product isrequired. ❏December 2003

TANK CONTAINERSWorldCargonewsmanagement under one roof,”explained M Gopal, one of company’smanaging officers.“We have expanded our tankoperations to encompass the ArabianGulf in the west and SouthEast Asia in the east, as well as thesubcontinent. Our Bulk LiquidsDivision also offers other transportoptions like flexitanks andintermediate bulk containers(IBCs). As a part of Goodrich’sforward integration, we have securedstorage tank space in theMiddle East to enable us to offerfull supply chain solutions to ourcustomers.”As India’s chemical industrydevelops, so does the potential fortwo-way trade in tank containers.In recent years the traditionalexport commodities of castor andlinseed oils have been augmentedby petrochemical products whichare being produced locally at lowcost and sold onto world markets.Imports, too, are rising to meetthe country’s growing demandfor industrial and foodgradechemicals and edible oils.“In addition to the developingtwo-way trade flows, there area number of other factors whichbode well for the future use oftanks in our region,” Gopal said.“Joint ventures and other collaborationsbetween local manufacturersand global chemical companiesare promoting increasingtraffic, much of which is moresuited to intermodal tanks thanchemical parcel tankers and tanksare also continuing to gain favourover smaller packages, such asdrums, due to the economies ofscale and the environmental constraintsplaced on disposal of usedpackaging. The strong economicgrowth in the Indian subcontinent,South East Asia and the ArabianGulf also reinforces our optimism,”Gopal said.Bertschi and EuropeCompared to other chemicalproducingregions around theworld, Europe faces a number ofserious disadvantages, not leastrelatively high feedstock and labourcosts, rigorous environmentaland other regulatory controlsand mature markets. In the yearsahead European chemical manufacturerswill face increasingcompetition from lower-cost producersabroad. A number ofsmaller chemical plants have alreadyclosed.In addition to a shrinking customerbase and low-growth productstreams, tank container operatorsserving Europe’s chemicalproducers must contend withcongested roads, archaic rail systemsand intense competitionfrom numerous other LSPs.In such a marketplace, it is theLSP that can think more quicklyand intelligently and move moreassertively than its many rivalsthat is the most likely to be successful.Bertschi AG of Dürrenäsch inSwitzerland keeps one step aheadby working with its customers onthe development of tailor-madecontract logistics arrangements.Bertschi, through its ContractLogistics Group, has worked witha number of chemical producersto develop bulk chemical logisticsprojects in which tank containersare integrated into thewhole supply chain.In this way tanks can be usedfor both product storage and distribution,resulting in considerablesavings in fixed storage tankinvestment. A number of solutionshave been developed, in tandemwith chemical producerpartners, in both the liquid andsolid bulk sectors of the business.“We have successfullylaunched two such contract logisticsprojects using tank containersrecently,” said BertschiCEO Hans-Jörg Bertschi. “Wehave also launched new subsidiarycompanies for intermodaltransport in Hungary, Poland andIreland in the last 12 months.Bertschi now has a presence, withtrained drivers and owned equipment,in 16 European countries.“The past year has been a particularlysuccessful one for us interms of tank container activities,especially during the second halfof 2003. The total Bertschi tankcontainer fleet has grown by approximately400 units in 2003,most of which are 31-35,000 litreswap tanks - sizes which allowus to maximise payloads. Inaddition, several hundred silocontainers have been added to thefleet,” Bertschi added.Bertschi is tackling the currentchallenges facing the industryboth through its own individualefforts and, for industrywideissues, through organisationslike ECTA. The company is introducingbehaviour-based safetytraining for all its drivers on apan-European basis in 2004,while its Contract LogisticsGroup continues to develop newsolutions for receptive customers.Strengthening the company’scommitment to Eastern Europehas also been identified as a priority.With the imminent enlargementof the European Union to25 nations, Bertschi has beenbuilding up its knowledge of thisnew regional market with a viewto establishing subsidiaries inEastern Europe in due course.Contank on the moveAnother part of Europe wherethe use of intermodal tanks hasbeen growing is the Iberian peninsula.Contank SA of Barcelonareports that its tank container activitiesin 2003 are 30 per centahead of those for 2002. Part ofthe growth stems from the roleplayed by Contank as the Iberianpartner in cooperative ventureswith LSPs in Northern Europe.The Spanish operator has purchased70 tank containers overthe last six months in response tothe specialist needs of its customers.The new units include tankscapable of carrying chemicalproducts at high temperatures andmulti-compartment tanks.“In addition, we have openeda new 25,000 m 2 tank depot onthe outskirts of Barcelona,” saidIsrael Lago, European logisticsmanager for Contank. “This facilityenables us not only to consolidateall our own vehicle andtank servicing activities at a singlesite, but also to offer thirdpartyservices at a strategic location.”The terminal offers storage,tank cleaning and intermediaterepair services as well as a fuel stationand parking for ADR andnon-ADR vehicles.Contank points out that theBarcelona location is good for railand shortsea connections, and hasassisted its own expansion effortsas more shippers in Spain wakeup to the multimodal advantagesoffered by the tank containercompared to a road barrel. “Weare able to offer a wider range oflogistics solutions to our clients,in terms of intermediate storage,just-in-time deliveries, and, insome cases, the carriage of greaterquantities of product than wouldbe possible with a truck,” Lagosaid.Meurer mergerTwo German intermodal tankcontainer operators that have recentlyexperienced, like the restof the industry, increased volumesand reduced margins are Lanferand Meurer. The two companiesdecided to do something aboutit and about 12 months agoagreed to merge their respectiveoperations under the MeurerIntermodal banner.“We expect rates to remainunder pressure in 2004,” said PeterDannewitz, a joint managingdirector of the merged operationalong with Hermann Lanfer. “Inour new alignment we will bebetter placed to serve the growingpan-European market and theincreasingly sophisticated demandsof our customers as a reliableand competent partner.”Meurer Intermodal has recentlytaken delivery of series ofswap body and 20ft ISO tankcontainers from Belgian manufacturerVan Hool and is proceedingwith further orders for similarunits over the next year. Themain emphasis has been on lightweightequipment, particularlyinsulated tanks to meet the requirementsof particular customers.“We see strict cost managementand control and good communicationswith our clients askey elements of the MeurerIntermodal service package goingforward,” explained Dannewitz.“The merged operationimproves our ability to tailortransport solutions to the preciseneeds of the shipper, whilst at thesame time also maintaining theflexibility needed to deal withunforeseen circumstances.” ❏The merged Meurer Intermodaloperation has facilitated a greater degreeof supply chain integrationBy working together with LSPs in northern Europe, Spain-based Contank hasseen a 30 per cent increase in its tank container activities this yearDecember 2003 31