March Front Cover - WorldCargo News Online

WorldCargonewsJurong jetty monitoring dealUK-based load measurement andstress analysis systems manufacturerStrainstall recently completeda contract to supply integratedjetty monitoring systemsfor the new VLCC oil import terminalat Jurong in Singapore.The systems are designed toaccurately monitor a vessel’s speedand angle of approach and, oncethe ship is safely berthed, provideconstant monitoring of the mooringlines to ensure that the tensionof the lines remains withinpre-defined parameters.The Jurong facility comprisestwo berths each capable of handlinga VLCC, one operated byExxon Mobil and the other byTanker Mooring Services. Separateintegrated monitoring systemshave been installed for eachberth, each comprising threeproven sub-systems developed byStrainstall - DockAlert, MoorAlertand Berth ManagerThe Strainstall DockAlert systemprovides a continuous, realtimereadout of the vessel’s speedof approach, angle of approach anddistance from the berth. This isachieved by two sensors mountedat each end of the berth that transmitlaser beams towards the incomingvessel and receive reflectionsback from the bow and stern.This data is transmitted to theberthing manager’s control roomand to a large digit displaymounted adjacent to the berththat is visible from the ship’s bridgeat all times.The MoorAlert system measuresand records the tension inA newly-launched, directional andlocational vehicle reversing alarm,which utilises broad band sound,has been officially endorsed by theUK’s Noise Abatement Society(NAS). In addition, the Health &Safety Executive (HSE) has statedthat, in prototype trials carried outwith a Cat 966D earth mover, thealarm not only reduces noise emissionsby some 5 dB(A) comparedto a conventional single tone reversingalarm, but could reduceaccidents since it increases vehiclelocalisation capability.Known as bbs-tek and developedby Brigade Electronics plc,the ruggedised device, which is noThe Strainstall MoorAlert system at the new VLCC oil import terminal inJurong automatically measures and records the tension in vessel mooring linesvessel mooring lines and detectsany changes in the predeterminedvalues caused by the action ofwind, tide and wash from passingships. Data from the system enablesthe berthing manager or thevessel master to continuously assessthe efficiency of the mooringpattern and to take appropriateaction to ensure that maximummooring safety is maintainedat all times.Load measurement at eachmooring point is performed by ahermetically sealed Load MeasurementPin that is installed inplace of the rear horizontal swivelpin in the quick-release mooringhooks. Forces acting on the pinare converted into an electricalsignal and all the hook load outputsare collected via a networkon the jetty for processing anddisplay in the system master unit.Prevailing environmental conditionsare also measured via aMet/Ocean sub-system, includingwind speed and direction. air andsea temperature, humidity, rainfall,sea current speed and directionand wave and tide heightsSignals from DockAlert,MoorAlert and the environmentalpackage are handled by BerthManager, a Windows NT-basedsoftware/hardware suite, whichnot only logs and records the datafrom the two systems but also provideson-screen, real-time graphicdisplay of a vessel’s approach and,when berthed, the current mooringstatus of each mooring line.Alarm parameters for each linecan be individually changed asrequired.In the case of the Jurong facilitytwo Berth Manager stationswere provided - one for eachberth. However, it is possible forone station to assume control ofthe other berth or both berthsshould the need arise.Low noise reversing alarmbigger than a tea cup, emits (literally)a “shhh” sound. Comparedwith a pure tone conventionalalarm, says NAS director PeterWakeham, it is like “having yourfoot trodden on by someonewearing a slipper instead of a stilettoheel.”Wakeham checked the deviceat a Tarmac factory in England,which uses a range of heavy andmid-size equipment such as loadingshovels, wheel loaders and FLTs.Vehicle alarms, adds Wakeham, area source of ever more complaintsfrom people living close to quarries,ports, industrial sites, warehousing/distributioncentres, etc.With broad band sound, thenoise dissipates much morequickly - ie it does not carry sofar (such as over water) - but atthe same time it is less likely to beignored because in a multi-machine/vehicleenvironment it iseasy to detect the source.Brigade offers a completerange of bbs-tek devices to suit allroad-going and off-road vehicletypes. A number of units have recentlybeen supplied to Australia,for use on FLTs, HGVs and quarryplant. It is understood that trialson bbs-tek are being conductedon straddle carriers at a containerterminal in Germany.SCT buysSprintersSouthampton Container Terminals(SCT) has placed an orderfor five 1 on 1 Sprinter Carriersfrom Noell Crane Systems, to replaceits existing tractor/trailershuttle between the terminal andthe Freightliner railhead, a roundtrip of around 800m. The roadlayout to the railhead is being redesignedto optimise the machines’travel path.The Sprinter Carrier has beendemonstrated to leading terminaloperators in Europe, Australiaand the US although SCT is believedto be the first to place afirm order. The machines will bedelivered during the summer.SCT’s engineering directorCameron Waugh explains that thetractor heads currently deployedin feeding the railhead were comingup for replacement so it wasa case of buying new or switchingto another system which, becauseof its self-buffering capabilities,holds out the promise ofhigher productivity.Typically four Sprinter Carriersshould be required so thefifth machine provides redundancy.The machine is essentiallya cut-down version of Noell’sESW diesel-electric 1 over 2/1over 3 designs, with six wheelsrather than eight. As previouslyreported (see WorldCargo NewsJanuary 2003, p36), each of thefour drive wheels (the middlewheel on each side is not driven)has a hub motor drive with itsown inverter, similar to the latestESW design. As the present tractor/trailersets are geared for twin20 moves, the Sprinter Carriersare being fitted with twin 20spreaders rated at 50 tonnes intwin mode (and 40 tonnes forsingle 20/40).As also previously reported, afurther 14 50 tonne SWL (fortwin 20s) 1 over 2 Noell ESWsare being delivered to SCT thisyear, following the delivery of thefirst 11 machines last year.As is well-known, this orderwas a major breakthough forNoell as SCT had been a 100 percent Kalmar (Sisu/Valmet) operationfor many years. Kalmar hadoffered the terminal a “power byhour” deal but P&O was apparentlydetermined to introduceanother supplier.CARGO HANDLING NEWSThe picture shows the boom being fitted to the Kalmar Nelcon post-Panamaxcontainer crane ordered last year by Eurogate, where it arrived by barge insemi-erect form from the Rotterdam fabrication facility last month. Aspreviously reported, this 40 tonne SWL-48.5m (17-wide deck stow) craneis of the traditional Nelcon lattice boon design as previously supplied toEurokai (three units) except that it has more lift height above rail (32m)and is fitted with Alstom rather than Siemens drive controls. Self-weight ofthe crane is 1060 tons and it is due to be commissioned at the beginning ofJune, bringing the crane complement at Eurogate Hamburg (Eurokai) to13. Last year the terminal logged an increase in throughput of 17.9 per centto 1.73 mill TEUHat back in the ringYoung An Hat Company Ltd(YAHC), which recently boughtClark Material Handling Company(CMHC) in the USA tobring it out of bankruptcy (see lastmonth’s WorldCargo News p3), isclose to securing a similar buyoutdeal with the receivers of ClarkMaterial Handling Europe(CMHE) in Mulheim, Germany.CMHE was put into receivershipwhen YAHC boughtCMHC, whose chief executive,Kevin Reardon, said that anotherAs part of its drive to improvenational port security, Dutch Customshas taken delivery of a highenergymobile cargo scanner. TheCX-2500M unit, worth US$5mill, generates X-ray imagingfrom a 2.5MeV linear acceleratorsource.The new scanner recently enteredservice in the Port of Rotterdam,where it is being deployedat various terminals to screen containersfor contraband or terroristweapons. An option exists for asecond machine to be acquired fora separate site in Amsterdam.The scanner order was placedin early 2002 with PerkinElmerInstruments, although this companyhas since sold its DetectionSystems division to MassachusettsbasedL-3 Communications Securityand Detection Systems. Thetransaction was concluded in June2002 and all manufacturing ofproducts/systems has since beenrelocated to a larger site in Florida.Several key personnel have alsojoined L-3 from PerkinElmer, includingtechnical marketing director,Nick Gillett.Gillett explained that the CX-2500M design now heads thegrowing L-3 cargo security range.It has a capability to penetrate a200mm thickness of steel, whileproviding a high-resolution imagequality, and can typically scan a fullcontainer within 20 minutes. Toenhance its mobility and simplifymaintenance, the imaging devicecompany, which he described as a“large US material handling companywith a big presence in Europe”was also bidding for CMHE.If the YAHC bid is accepted,CMHE will continue to operatein its present form, although staffnumbers will be reduced. IfYAHC’s bid is not successful,naming rights will be retained andYAHC will open a distributorshipin the region. Reardon said, however,that the latter would be anunlikely outcome.L-3 for Rotterdamis mounted on a standard Volvobuilttruck chassis. It is also whollyroad-mobile when stowed, and isrun within a special safety exclusionzone in order to limit theexposure of operatives and otherpersonnel to radiation, which isalready restricted to very low permissiblelevels in the Netherlands.One further safety feature is aportable “microwave fence” thatwill switch off the X-ray sourcein the event of anyone enteringthe exclusion zone during thescan.The CX-2500M model wasderived from the low energy CX-450M design, similarly developedfor the mobile scanning of cargoat seaports and also now formingpart of the L-3 range. The latterwas produced originally for theUS Customs and uses an energysource of 450KeV. CX-450Munits have previously been sold toSaudi Arabia, Singapore and theUS Army.However, Gillett stated thatrelatively few units of this size haveentered use at seaport containerterminals, because of the requirementfor a more powerful imagingtool. Although X-rays from a450KeV source can view containersthat are empty, or carryingmore lightly packaged manufacturedgoods, they cannot penetratedenser items, such as raw materials,plant equipment or foodstuffs,which make up a sizeable share ofglobal container trade.The CX-2500M scanner is mounted on a Volvo-built road-mobile truck chassis2March 2003

CARGO HANDLING NEWSKalmar lines up HollandiaHard on the heels of its Tampere productlines’ outsourcing agreement with TPgroup (see WorldCargo News January 2003,p36), Kalmar Industries is negotiating anoutsourcing agreement for fabrication ofsteel structures of (ex-Nelcon) ship-toshorecranes and RMGs (including anyASCs) with Lubbers’ Constructiewerkplaatsen Machinefabriek HollandiaBV, one of the leading steel constructioncompanies in Western Europe.Under the proposed deal, Hollandiawill be responsible for the steel fabricationand assembly of Kalmar cranes whileKalmar Industries BV, Kalmar’s Dutchsubsidiary in Rotterdam (formerlyNelcon and Groot Hensen), will focus onmarketing, R & D, project managementand servicing of the cranes.This arrangement will lead to some100 employees of Kalmar Industries BVbeing transferred to Hollandia, which willcontinue to operate out of the formerNelcon factory in Rotterdam, althoughother Hollandia factories will also be involvedso that capacity can be mobilisedto provide short delivery times for eventhe largest projects.Hollandia is a leading designer andbuilder of steel structures such as bridgesand modular buildings - the “LondonEye” is among its achievements.It is not clear at this juncture whetherproduction of HS straddle carriers is staying“in house” in Rotterdam or is also beingcontracted out to Hollandia. The durationof the agreement with Hollandia isalso unknown. Its signficance, however, isthat Kalmar has found a Dutch solution tothe problem of ensuring price competitivenessand timely deliveries to matchZPMC, while maintaining Nelcon’s traditionalhigh quality standards.By outsourcing production, Kalmar isalso insulating itself from market fluctuations.Last year its net sales fell to E719.3mill, compared to around E800 mill in2001. Contractors such as TP group andHollandia serve a broad range of industriesand may be able to switch resourcesfrom one to another as demand warrants.These deals mean that Kalmar is essentiallyleft with two established productionoperations, Kansas (terminal tractors)and Lidhult/Ljungby (reach stackers andmast trucks), which would be difficult tofarm out because there is no other supplyinfrastructure of sufficient capacity tocall on; and one new one, in Shanghai,which it is trying to build up (initially forterminal tractors). It remains to be seenhow Kalmar and Bromma spreader andspreader components production at varioussites today (Tampere, Stockholm,Roxboro, Ipoh, Polish and Estonian suppliers)is reorganised (see also last month’sWorldCargo News, p24).WorldCargonewsMAN restructuring movesAs part of a restructuring of the MANGroup in Germany, MAN Takraf Fördertechnikhas taken over the range of shipyard,port and offshore slewing cranespreviously supplied by MAN Wolffkran.MAN Takraf is a long-established supplierof heavy duty steel mill cranes aswell as various types of cranes for portsand harbours, including gantry grabshipunloaders, double-link level luffingand slewing cranes and floating cranes aswell as large gantry cranes for shipyards.MAN Wolffkran’s range of luffing andslewing cranes, says a company statement,complements the MAN Takraf programme,particularly as regards single jibcranes. Now cranes with lifting capacitiesbetween 5 tonnes and 200 tonnesand slewing ranges of up to 100m areavailable from a single source. MANTakraf is currently extending its cranerange, particularly with new luffing andslewing cranes for shipyards to complementits existing gantry cranes. Two ordersare already being processed for shipyardsin Indonesia and Malaysia.As a result of the re-structuring,MAN Takraf Fördertechnik will also beable to cover the market for offshorecranes, taking over more than 30 referencesfor offshore cranes supplied byMAN Wolffkran within the last 25 years.Cascadebuys ItabCascade Corporation has acquired Sweden-basedpaper roll clamp manufacturerItab from Nymek AB, which had ownedthe company for about 12 years. The dealwas made through Cascade’s Europeanproduction unit, Cascade Europe,headquartered in Almere, Holland, whichwill reportedly take over the production.According to a statement issued fromAlmere, merging the Cascade and Itabproduct lines and damage protection systems,such as the latter’s semi-automated“Smart Clamp” system, “further cementsCascade’s position as the premier supplierto the European paper industry.”Cascade Scandinavia AB, based inGothenburg and headed by TommyAbrahamsson, will be responsible for theScandinavian market.SavannahadditionsTwo Konecranes superpost-Panamaxship-to-shore cranes arrived at the Portof Savannah’s Garden City Terminal at theend of last month. The largest ever tooperate in Savannah, they represent aUS$11.6 mill investment in new infrastructureby the Georgia Ports Authority(GPA).“These cranes are 20 per cent largerin size and have hoist speeds almost 50per cent faster than existing cranes in serviceat the Port of Savannah,” said DougMarchand, executive director for the GPA.“They will not only help us move morecargo faster than ever before, but they willallow GPA to continue growing fasterthan any containerport in the US.”The cranes arrived fully erect aboardthe DOCK EXPRESS 10 and successfullytransited the Talmadge Bridge, which wasclosed to traffic during the manoeuvre.The bridge has a vertical clearance of194ft in the shipping lane at low tide.When the cranes transited, they towered190ft above the water level.GPA ordered the cranes fromKonecranes in late 2001. With a liftingcapacity of 72 tons under spreader and95 tons under hook, they have an outreachsufficient to handle a 22-wide deck stow.March 2003 3

WorldCargonewsBromma spreaderfor FreightlinerUK intermodal rail operatorFreightliner Ltd has retrofittedthe Morris RMG (type 0-4-0)at its Leeds (Stourton) terminalwith a Bromma all-electric 20-40ft spreader. This is understoodto be the first RMG applicationanywhere in the world for thisspreader design, introduced byBromma about one year ago.One of the biggest customers sofar is the Port of Felixstowewhich now has the spreader fittedto 11 RTGs.Freightliner’s crane engineerMark O’Neil explains that up tonow the company has pursueda spreader refurbishment programmeat its railheads, but thenew Bromma offers some importantadvantages. It uses muchless power, is competitivelypriced and self-weight is just 5.8WorldCargonewsVOLUME 10 NUMBER 3 • ISSN 1355-0551EDITORIAL:CHRIS MUNFORD • PUBLISHING DIRECTORE-Mail: cmunford@worldcargonews.comVINCENT CHAMPION • EDITORIAL DIRECTORE-Mail: vchampion@worldcargonews.comADVERTISING:SIMON PESKETT • ADVERTISEMENT DIRECTORE-Mail: speskett@worldcargonews.comMIKE FORDER • COMMERCIAL DIRECTORE-Mail: mforder@worldcargonews.comSTEPHEN CATCHPOLE • BUSINESS DEVELOPMENT MANAGERE-Mail: scatchpole@worldcargonews.comADMINISTRATION & CIRCULATION:GILL TILBURY • SALES & MARKETING COORDINATORE-Mail: gtilbury@worldcargonews.comNICCI VIGORITO • MARKETING ASSISTANTE-Mail: nvigorito@worldcargonews.comCORRESPONDENTS:PAUL AVERY (ASIA)DALE CRISP (AUSTRALIA/NEW ZEALAND)FRANCO CORBELLINI (FRANCE)FRANCE AGENT:VALERIE RUIZTelephone: +33 55 53 33 716E-Mail: vruiz@worldcargonews.comtonnes - 4.2 tonnes less than thespreader it is replacing.This will allow an increasein the crane’s SWL (currently 30tonnes) although the new SWLhas not yet been set by Freightliner.The crane at Stourton performsup to 60,000 lifts/year andthe weight saving will help boostits fatigue life.One reason the old spreaderwas so heavy was that it wasoriginally a combi-lifter (whenFreightliner ran domestic swapbody services) and although thelegs had been removed, theframe still carried structuralweight associated with them.However, the all-electricspreader saves weight in its ownright because of more modernconstruction, and absence ofhydraulic rams, oil tank, etc.ITALY AGENT:PAOLA ANDREANI, EDICONSULT INTERNAZIONALETelephone: +39 010 583 684 Fax: +39 010 566 578E-Mail: genova@ediconsult.comJAPAN AGENT:HIDEO NAKAYAMA, NAKAYAMA MEDIA INTERNATIONAL INC.Telephone: +81 3 3479 6131 Fax: +81 3 3479 6130E-Mail: nmi@tka.att.ne.jpIgus goes verticalNow well-established in the containercrane market with chains fortrolley and long travel use, Igus islooking to extend its range bydeveloping cable chains for verticalapplications. Today’s largecranes usually require a poweredreel for the spreader cable andsome operators might welcome analternative solution. Igus has cablechains in other vertical applications,such as theatre lighting,but a container crane is a muchmore difficult proposition. One ofthe problems is where to store thechain when the hoist is raised.While there are several possibleconfigurations, Igus is developinga system using a counter-weight that lowers the chain awayfrom the load when the hoist israised. A test system has been installedon the automated RMGthat was built for the “Mega-hub”intermodal terminal project atNoell’s facility in Würzburg.For lifts up to 40m igus offersenergy chains in a ‘zig zag’ configurationwhere the chain coilsleft and right as the hoist is raised.Igus also sees this as a new solutionfor straddle carriers, RTGsand RMGs. Igus continues tobuild momentum in horizontaltravel applications on containercranes. More then 30 containercranes and 400 RTGs are now inoperation with its energy chains.Yantai for CSXWTCSX World Terminals (CSXWT)and Yantai Port Authority (YPA)have signed a joint venture contractunder which CSXWT andYPA will jointly invest in and operatethe container terminal facilityat Yantai Port, Shandong Province,in North China.The joint venture - to beknown as CSX World TerminalsYantai Company Ltd - will beheld 50 per cent by CSXWT and50 per cent by YPA. CSXWT willprovide operating managementand global sales and marketingwith the aim of establishing thefacility as a state-of-the-art containerterminal.The Yantai terminal was completedin early 2002 and has a573m berth with a 14m depthalongside capable of handling thenew generation of post-Panamaxvessels. It is equipped with fourship-to-shore cranes, three rubbertyred gantry cranes and six railmounted gantry cranes all suppliedby SPMP.The Yantai terminal is expectedto attract significant volumesof both indigenous and transhipmentcargo. Complementingthe port is a contiguous exportprocessing zone for warehousingand a logistics park.This is CSXWT’s second containerterminal investment inNorth China. The company hasbeen an investor in CSX OrientTerminal in Tianjin since 1999.Commenting on the Yantaimove, William McHugh,CSXWT senior vice presidentChina Investments, said, “TheYantai terminal facility will enableCSXWT to increase its participationin China’s fast growing containerthroughput in future years.”Management for the new Yantai container terminal will be provided by CSXWTCARGO HANDLING/PORT NEWSICTSI bags BCTInternational Container TerminalServices Inc (ICTSI) is to paysome US$40 mill for the right tooperate Poland’s Baltic ContainerTer minal (BCT) in the Port ofGdynia, the Philippines-basedcompany’s first foray into Europe.Miroslaw Turzynski, a memberof the port authority’s managingboard, confirmed that ICTSI putin the highest offer for 100 percent of the shares of state-ownedBCT. ICTSI met all other criteriaconcerning investor obligations,added Turzynski, withoutelaborating.The Polish media had reportedthat second-placed bidder APMTer minals had been “unhappy”about certain aspects of the award.However, privatisation supervisorboard chairman Andrej Grzelakowskistated that the process hadbeen “good, clean and transparent.”The contract award is slatedfor the second quarter of 2003, bywhich time ICTSI should havecompleted negotiations with thelocal unions.ICTSI won the concession as highestbidder, says the port authorityIt is not yet clear whetherICTSI will assume BCT’s existing20-year (extendable) concessionor be given a fresh lease ofthe same duration.Turzynski confirmed that theport will continue to own the landand buildings covered by the facility,which boasts a total quaylength of 980m, warehousing of2.3 hectares and 21 hectares ofopen storage area.ICTSI has not revealed itsplans beyond saying that it wouldexpand BCT’s current annual capacityof 350,000 TEU in the nearterm. Last year throughput cameto 252,247 TEU, up 16.2 per centon 2001.BCT’s equipment park includesone Konecranes quay craneand three Paceco-FruehaufPortainers, two Paceco-FruehaufRMGs, 10 RTGs, an elderly 15ton Jones mobile crane and twoNoell 40 tonne straddle carriers.Unikai closes downHamburger Hafen- und LagerhausAG (HHLA) has closeddown its Unikai facility for containershipping. Last monthP&O Nedlloyd’s 2462 TEUPANTANAL was the last containervessel to call there The ship, operatedin the line’s WCSA service,discharged 560 containersand loaded 480.The Unikai terminal wasopened in 1984 by Hapag-Lloydand considered state-of-the-artat the time, with one of the firstwire-guided RTG stacking systemsin Europe. HHLA tookover the facility in 1989. Some200,000 TEU/year were handledat the 3-berth facility,equipped with five gantry cranes.With the opening ofHHLA’s CTA Altenwerder,Unikai is considered surplus torequirements and its staff of 100will be transferred to CTA,Burchardkai and TCT. Unikaiwill now be used for ancillarycontainer purposes, includingdepot work. It is not clear whatwill happen to the cranes.KOREA AGENTJO, YOUNG-SANG, BUSINESS COMMUNICATIONS INC.Telephone: +82 2 739 7840 Fax: +82 2 732 3662E-Mail: biscom@unitel.co.krSPAIN AGENTANDREW DOUGALL, COMUNICADO SLTelephone: +34 942 52 86 62 Fax: +34 942 52 86 77E-Mail: andrewdougall@comunicadopublishing.comPUBLISHED BY WCN PUBLISHINGNorthbank House, 5 Bridge Street, Leatherhead, Surrey KT22 8BL,England. Telephone: +44 1372 375511 Fax: +44 1372 370111SUBSCRIPTIONSSubscriptions are available from the address aboveor via our website:www.worldcargonews.comWorldCargo News/ISSN 1355-0551 is published monthly for US$155 per year byWCN Publishing. Periodicals postage paid at Rahway, NJ. Postmaster: Sendaddress changes to WCN Publishing c/o Mercury Airfreight International Ltd, 365Blair Road, Avenel, NJ 070014March 2003

PORT NEWSWorldCargonewsNewcastle, Kembla on standbyThe latest expressions of interest periodfor Newcastle’s proposed Multi-PurposeTerminal (see WorldCargo News October2002, p19) closed on 28 February, withNewcastle Port Corporation (NPC) reportingan encouraging level of response.Though NPC is not releasing the finalnumber and names of companies tobe shortlisted, local reports have namedusual suspects including Toll, Patrick andP&O Ports, plus a consortium of Egis ofFrance, Flinders Ports of South Australia(in which Egis and Adsteam are leadingshareholders) and construction giantLeighton (which has been involved inprevious Newcastle terminal plans). It isunclear whether P&O Ports’ interest isstandalone or via its stake in Egis Ports.P&O Ports has extensive activity inNewcastle, including a joint venture withGrainCorp in a bulk agri-products terminal,and plans to develop the K1 berthfor the Protech steel rolling mill project.Toll already owns and operates the EasternBasin Distribution Centre in the port.The submissions will now be assessedby an evaluation panel, before a recommendedshortlist is submitted to theBudget Committee of the New SouthWales cabinet for approval to proceed andcall for detailed proposals. Constructionwork could commence in mid 2004,Jam today?The government of the south Indian stateof Kerala will shortly appoint a consultantto prepare a feasibility report for thedevelopment of Vizhinjam port as a majortranshipment hub.Nearly 20 international consultantsresponded to the tender floated by thegovernment last year. Seven of these wereshortlisted and those in the final reckoningare Collen Grummit and Roe ofAustralia, BMT Asia Pacific of Singaporeand L&T Ramboll of India.The proposed port is being relocatedfrom a site selected earlier to a nearby fishingharbour. The consultant will preparea detailed report and project possible containertraffic for Vizhinjam.In 1999, the Kerala government signedan agreement for the development ofVizhinjam on a build, operate and transfer(BOT) basis with Kumar Energy Corporation,but the agreement was terminatedlast year before any progress hadbeen made.Kocks winsIPRA orderGermany-based Kocks Krane InternationalGmbH has won the tender for foursuperpost-Panamax cranes, with optionsfor three more, for Israel Ports and RailwaysAuthority (IPRA)’s new Hayoved(“Jubilee”) Port in Ashdod.The contract for the four cranes is valuedat €27.5 mill, says Kocks, and the deliveriesare slated for July, September andOctober next year. As previously reported(see last month’s WorldCargo News, p10), thefirst phase of the new port is now expectedto open at the end of 2004/early 2005.Over the years Kocks has been theIPRA’s main supplier of cranes, the mostrecent being two units for Haifa in 1999followed by one for Haifa and one forAshdod last year, which were fabricatedlocally by Israeli Shipyards. Fabrication anderection of the new cranes will, as in thepast, be carried out by suitable and provenlocal sub-contractors with long experiencein this field of business, says Kocks.It is not clear how many companiesparticipated in this latest IPRA tender. Ithardly needs mentioning that it is sometimesvery difficult for crane makers todeal with all parts of the Arab world, letalone with Israel as well as Arab ports. Butthis should not detract from the trust builtup over many years between the IPRAand Kocks in its guises over the years (cfSalzgitter, Vulkan Kocks, Kocks Krane).with operations commencing in 2006.Meanwhile the NSW government hascome out in favour of the latest reportbacking a modest container terminal atPort Kembla, south of Sydney.The draft report, prepared by the PortKembla Container Terminal Task Forcechaired by local parliamentarian DavidCampbell, found the port could capturesecond-tier shipping lines concerned overberth congestion in Sydney/Port Botany,and effectively replace the Patrick andP&O facilities in Sydney’s Darling Harbourand White Bay when current leasesexpire in 2010.The report found Port Kembla man-agement is pragmatic and does not sharethe ambitions of Newcastle to develop a250,000 TEU/year terminal. A 100,000TEU facility to complement Sydneycould be built for relatively little privateand public cost.The report says that several lines wouldconsider relocating to get certainty overberthing, despite problems of perceptionand inertia among major carriers. Sitesfor supporting intermodal terminals inNSW should be identified.Response to Newcastle’s call for EOIs todevelop new multi-purpose facilities are saidto have been encouragingMarch 2003 5

WorldCargonewsIndonesia plans two hub ports...The Indonesian government hasdecided to develop two internationalhub ports with a combinedannual capacity of 10 mill TEU.Tanjung Priok in Jakarta willbecome the western hub with themerger this month of Jakarta InternationalContainer Terminal(JICT) and the adjoining Koja Terminalunder the name JakartaContainer Port. Bojonegara inBanten province will function asits supporting port.In the east, a new port will bebuilt at Kalilamong in East Javaprovince, with Tanjung Perak inSurabaya playing the supportingrole. State-owned operatorPelabuhan Indonesia III (PelindoIII) will build the new port withthe help of foreign investors.The new port, estimated tocost US$200 mill, will have a designedcapacity of at least 3 millTEU/year, compared withTanjung Perak’s 1.8 mill TEU. Theport complex will be spread over500 hectares in Kalilamong, about40 km north west of TanjungPerak. The port itself will take up100 hectares, with the remainderreserved for industrial estates.Funding is expected to comefrom the Surabaya administrationand strategic foreign investors.Bidding will open next year. Severalport operators, includingHutchison Port Holdings of HongKong, PSA Corp of Singapore andP&O Ports, are understood tohave expressed interest. Constructionis expected to begin in 2005.At present, Indonesia’s portshave limited capacity to accommodatemother vessels. Mostcargo is transhipped over Singaporeor Malaysian ports. A studyconducted by the governmentshowed that around a third of containerloads in Singapore andMalaysia are derived from Indonesia’sfour large ports at TanjungPriok, Tanjung Perak, Belawan inMedan and Makassar in SouthSulawesi province.Last year, Indonesia’s total containervolumes reached about 4mill TEU, but 95 per cent of theboxes were transhipped to Singaporeand Malaysia for long hauls,costing exporters around US$720mill in transhipment charges.New portfor UAERas Al Khaimah, UAE, plans todevelop a commercial hub at AlHamra Island, according to ShaikhAhmed Bin Saqr Al Qassimi, thenew head of the Emirate’s Customsand Port Authority. He haspromised to kick off the newproject by 2004 and bring improvementsto existing shippingfacilities at Mina Saqr.Shaikh Ahmed claims that theRas Al Khaimah customs departmenthas become more efficientand user-friendly because of bettercoordination with other customsoffices including those at RasAl Khaimah International Airport,Mina Saqr customs, the land pointcustoms office at Ras Al Dara onthe Oman/UAE border, Ras AlKhaimah port, Ras Al KhaimahFree Zone and Jazirat Al Hamra.He also said that Mina Saqr isthriving on well-established bulkcargo operations making it anideal hub for transhipment becauseof its location in the straitof Hormuz and proximity to theIranian port of Bandar Abbas. Thenumber of vessel calls has goneup following a programme tostreamline tariff and customs procedures.The port authority saidthat it is in discussions with anumber of foreign and local companiesoperating large dhows andships to do more business withthe Emirate.Hutchison Port Holdings (HPH)would appear to be facing problemsin Indonesia where legislatorshave backed a governmentmove to annul its contract to operateand manage Jakarta InternationalContainer Terminal (JICT)at Tanjung Priok. HPH has a 51per cent stake in JICT, with thegovernment-owned PelabuhanIndonesia II (Pelindo II) holding48.9 per cent.Industry sources said relationsbetween the joint venture partnershave been strained sincePelindo II began developing thecompeting Multi-Terminal Indonesia(Serbaguna) terminal atTanjung Priok. JICT’s major customer,Maersk Sealand, has givennotice that it plans to shift callsfrom JICT to Serbaguna withinthe next few months.Legislators expressed supportfor the government move afterDeputy State Enterprise MinisterFerdinand Naingoland told themsome container lines had complainedthat service standards atJICT had deteriorated. It is understoodthat APL, Maersk Sealand,P&O Nedlloyd, CMA-CGM,ANL, OOCL and Evergreen havecomplained about slow loading.HPH denies that services havedeteriorated, however. “Operationsat JICT have improved considerably,”it said, adding that theterminal had spent more thanUS$350 mill since the 1999 privatisationto become Indonesia’sfirst international shipping hub.While acknowledging thatcomplaints had been received,JICT president director W SWirjawan said quayside productivityhad improved, with cranePORT NEWS...problems forHPH in Jakarta?Is HPH about to lose its concession tomanage and operate JICT?moves averaging more than 20 perhour, up from the 1999 averageof 15 per hour.Ironically, the government’smove to annul HPH’s contractcame just in advance of a ceremonyto be held this month toannounce the merger of JICT andthe adjoining Koja Terminal toform the Jakarta Container Port.Koja Terminal is 52 per centowned by Pelindo II and 48 percent by HPH.The two terminals will belinked with the completion of a513m berth with a draught of14m, extending the quay to1,200m and increasing their combinedannual handling capacityfrom 2.8 mill to 3.5 mill TEU.● Following Maersk Sealand’s announcementthat it plans to shiftits calls from JICT to Multi-TerminalsIndonesia, HPH has suspendedbusiness dealings with Singapore-basedPortek International,which operates the handlingequipment at the Serbaguna terminalin a joint venture with PTTransindo Interdwipantara. HPHclaims that under its agreementwith Pelindo II, JICT has to reacha certain level of throughput beforecompeting facilities can bedeveloped. HPH said it would notconsider further business untilPortek stops supporting “terminalfacilities which infringe the rightsof JICT in relation to its operationsat Tanjung Priok.” More than10 per cent of Portek’s revenue issaid to be derived from the provisionof equipment and services toHPH-managed terminals.Plate competitionThe Montecon group of stevedoresin Montevideo has forcedthe container terminal operator,Katoen Natie-backed TerminalCuenca de la Plata (TCP), to stopusing a public berth for its “overflowcargo.” Joris Thys, TCP’s terminalmanager, states that hiscompany was within its rights touse the public pier in Montevideofor a small barge operationbecause it did so under the auspicesof a third party, localstevedoring company Norsary.“With only one quay,” saidThys, “we are allowed, under thetender agreement, to use the publicterminal. Now Montecon hasprotested and we cannot useNorsary, but we might be able touse another operator and there areseveral, apart from Montecon.”TCP won a 30-year concessionto operate the container terminalin July 2001 (under theNelsbury consortium banner).For the past year or so Montecon,which bid unsuccessfully for theterminal, has been pressuring theMontevideo port authority(ANP) to allow it to install anduse gantry cranes at the publicberths, but Katoen Natie says thisis against the tender rules untilTCP is handling at least 250,000TEU/year. ANP presidentAgustín Aguerre has tried tocompromise by allowing stevedoresto bring in harbour mobilecranes at public berths 8 and 9.Thys added that TCP wouldlike to be involved in the tenderfor the new multi-purpose terminalplanned by ANP at Montevideo(see WorldCargo News,January 2003, p9). The rules, however,may bar it from bidding.One recent plus for TCP hasbeen the arrival of three MaerskSealand services, including thenorth Europe service, at the terminal.The operator is estimatedto have a 50 per cent share ofMontevideo’s annual 300,000TEU container traffic.● According to Diego Segura,terminal director of P&O Ports’Ter minales Rio de la Plata(TRP) in Buenos Aires, the fiveoperators in the port handledjust 550,000 containers (797,000TEU) last year, a 23 per cent fallcompared to 2001 and roughlya third less than 1998, whenBuenos Aires handled nearly 1.2mill TEU. As reported in lastmonth’s WorldCargo News (p6)the government is set to allowTRP to take over TPA and othermergers may follow.6March 2003

PORT NEWSPerot forSubic?Hillwood, the Texas, US-based realestate development company ofUS billionaire Ross Perot Jr, islooking to take part in a grandscheme in the Philippines to developSubic freeport, the ClarkSpecial Economic Zone and outlyingareas.Perot’s firm was the architectof the Dallas-Fort Worth corridorand it is thought that the sameconcept can be applied at Subic.The list of would-be Subic-Clark Alliance Development Corp(SCAD) investors also includesAmerican Railworld Corp, Singapore’sTemasek Holdings Pte Ltdand several Japanese conglomerates,including Mitsui, Marubeniand Mitsubishi.Officials say foreign investor(s)may be given a 55 per cent stakein SCAD, which will own andoperate the infrastructure assets ofSubic and Clark and the soonto-be-builttoll highway linkingthe two former US military bases.A 75-year land lease is an optionbeing considered in view of theConstitutional prohibition onforeign ownership of land. Theremaining 45 per cent equity willgo to the Subic Bay MetropolitanAuthority (SBMA), the BasesConversion Development Authority,state-owned Clark DevelopmentCorp and the Departmentof Trade and Industry.It is understood that revenuesfrom Subic’s port facilities, theClark international airport and theSubic-Clark-Tarlac toll road willform part of an equity fund to bemanaged by the SCAD Corp.● The SBMA has taken a pragmaticstand on the row over steelpipe piles for Subic container terminal(see WorldCargo News, February2003, p6). Victor Mamon,senior deputy administrator foroperations, said that changing therules at this stage would “just rockthe boat,” but SBMA will issue a“change order” after the biddingthat would allow the winner touse locally manufactured, spirallyweldedpipes. Latest word is thatTaisei Corp has backed out, leavingonly three groups to slug itout: Toyo Construction, NishimatsuConstruction and the Pentaconsortium (Penta-Ocean, TOAConstruction and Shimizu).Maher extends gate hoursMaher Terminals Inc is extendinggate hours at its Fleet Street Terminalin the Port of New York/New Jersey. The terminal gateswill now be open between 06.00and 24.00 hours, Monday throughFriday. This development isprompted by strong volumegrowth and, says Maher, to “[our]commitment to providing thetrade with the best service levelsin the port” (see also page 25).By extending gate hours andsystematically advancing its opticalcharacter recognition (OCR)gate processing technology, Maheris aiming to enhance still furtherits rôle as the standard bearer fortruck processing in the Port ofNew York/New Jersey. The moveis expected to be warmly welcomedby ocean carriers, truckers,importers, exporters, consignees,forwarders, and brokers as they areSPICT and spanThree years after terms wereoriginally agreed, Hutchison PortHoldings (HPH) has officially announcedthe establishment ofShanghai Pudong InternationalContainer Terminals Ltd(SPICT).The newly formed companyis a joint venture owned by ShanghaiWaigaoqiao Free Trade ZoneStevedoring Company (40 percent), Hutchison Ports PudongLtd (30 per cent), Cosco Pacific(China) Investments Ltd (20 percent), and Shanghai InvestmentInfrastructure Holdings Ltd (10per cent). With a tenure of 50 yearsthe joint venture has a registeredcapital of RMB1.9 bill.Located in the WaigaoqiaoFree Trade Zone, SPICT operatesWaigaoqiao Terminal Phase I,which has three container berthswith a total quay length of 900mand the capacity to handle latestgeneration container vessels. Theterminal, which handled over1.78 mill TEU last year, covers atotal area of 500,000 m 2 , includinga container freight station(CFS), reefer facilities and dangerousgoods handling areas. It isequipped with nine ship-to-shorecranes and 30 RTGs.SPICT has officially been formed to operate Waigaoqiao Terminal Phase IGate hours are being extended at Maher’s Fleet Street Terminal in New Jerseya critical component in safeguardingthe increasing volume of “justin time” shipments.Maher points out, however,that the long-term success of itsinitiative will be driven by supportfrom the trade. Both ofMaher’s coop chassis pool depots,located in close proximity to theFleet Street Terminal, will alsooperate during the extended gatehours. Cutoffs for the new hours’regime can be found on Maher’swebsite at www.maherterminals.comMexicantrafficincreaseMexico’s ports saw an overall 10per cent increase in tonnage handledduring 2002 - double theoriginal forecast for the year. DosBocas (38.5 per cent), Ensenada(21.8 per cent) and Mazatlán (21.4per cent) registered the biggestincreases, while Veracruz, with14.59 mt, logged the largestthroughput, accounting for 23.6per cent of total Mexican porttraffic. Lázaro Cárdenas, with a21.2 per cent increase, is statisticallyMexico’s second port, althoughit anticipates a significantboost in traffic once privatisationis complete.Traffic at Mexico’s 10 leadingcontainer ports grew by 15.1 percent to 1,554,971 containers.Ensenada’s throughput more thandoubled to 53,033 containers,while Manzanillo’s rose by 38.3per cent to 634,155 containers.Altamira also had a good year, withthroughput growing by 9.2 percent to 225,937 containers.Veracruz was steady, with trafficup by 0.9 per cent to 548,422containers.The opening of the first phaseof Shanghai’s ambitious newdeepwater container port atYangshan islands will be delayedby two years, according to thecity’s new mayor Han Zheng.An official involved with theproject said the delay was causedby difficulties with constructionand a change in design, whichhas expanded the number ofberths from five to nine in thefirst phase.“We will finish the design by2006, but construction is difficult,so that might be delayeduntil 2007,” said the official fromthe No 3 Navigational Engineeringand Design Institute.The construction problemsstem from a lack of equipmentfor deepwater piling. Suitableequipment is currently engagedin projects elsewhere in theworld, so the authorities are saidto be considering building pilingequipment from scratch.The port, being built onYangshan islands south east ofShanghai in Hangzhou Bay, willinclude a 30 km bridge to themainland. Terminal constructionwill continue, but the berths willnot be accessible until the bridgeconnects them to the on-shorestaging area.Analysts said the delay wouldcause the first-phase cost of theproject, estimated at US$1.4 bill,to rise. The move will also hamperShanghai’s efforts to grab alarger share of transhipmentcargo from South Korea and Japan.Shanghai was the world’sfourth-largest container port lastyear, handling 8.61 mill TEU, up36 per cent from 2001. Overstretchedterminal operatorsalong the Huangpu river willnow have to cope for two moreyears, though other nearby ports,such as Ningbo in Zhejiangprovince, are likely to benefitfrom the delay.The setback will also rekindlethe debate about whetherthe Yangshan islands were thebest location for a new port,given that Ningbo is one of theWorldCargonewsYangshan portfaces delaybest deepwater ports in theworld.● Delegates to the TerminalsOperations Conference (TOC)in Hong Kong last month mayhave gained the impression thatEric Ip, managing director ofHongkong International Terminals(HIT), was trying to tellChina who should operate thenew Yangshan container port bymaking a case for common-userterminals.Ip said common-user terminals,the business model followedby Hutchison and other internationalport operators, hadmany advantages over facilitiesleased to shipping lines. China,increasingly wary of giving partialcontrol of its fast-expandingcontainer ports to foreigners, issaid to be leaning towards leasingYangshan terminals to shippinglines, an option that wouldkeep full ownership of criticalmoney-spinning facilities.But Ip suggested that once abusiness model had been chosen,the port owner should stickto it. Hutchison already operatesterminals in Shanghai in jointventures with the local port authority.“The two systems areincompatible in the same marketor even the same country,”Ip said. “Common-user facilitiesare a better allotment of resourcesbecause they assuregreater neutrality and offer thehighest productivity for theavailable waterfront.“One point that needs to beexamined very closely iswhether a single shipping linewill always produce enough volume,because it is very rare foranother carrier to call at a facilityrun by one of its rivals,” Ipsaid, adding that being a common-userfacility did not meanthat berths could not be allocatedto priority carriers.China has yet to even ask forexpressions of interest for terminaloperations at Yangshan butinternational port operators havebeen jockeying for positionsince the project was announced.March 2003 9

PORT NEWSLong range DoverThe UK Port of Dover has appointedconsulting firms Halcrow,Eagle Lyon Pope and MDSTransmodal to help it draw up amaster plan to look at ways of maximisingits potential capacity and,if necessary, propose new capacityoutside the existing harbour walls.The aim of the project is toprovide a vision of the port as itwill be in 30 years’ time and a cleardevelopment plan of how to getthere, remarked the port’s generalmanager of property and planning,Bill Fawcus.The port is concerned that demandfor its services is beginningto outstrip capacity. Thirty yearsCoega green lightConstruction of the R2.6 bill(US$325 mill) first phase of theNgqura deepwater port at theCoega industrial developmentzone in South Africa can now start.The formation of the project’s environmentalmonitoring committee(EMC) was the last prerequisitefor commencement of workat the site.The committee has been set upto ensure that work on the projectcomplies with environmentalstandards set by the department ofenvironmental affairs and tourism.Fears over the environmental impactof the project, including theeffect upon local communities andupon flora and fauna in the area,held up development of the schemebut the government is now confidentthat sufficient safeguards havebeen put in place. Local environ-Demand is beginning to outstripcapacity at the Port of Doverago Dover recorded annual trafficof 1 mill tourist cars, 5.7 mill passengersand 200,000 HGVs. Lastyear, despite the Channel tunnel,throughput was 2.6 mill touristcars, 16.4 mill passengers and 1.8mill HGVs.“These figures give some perspectiveto the task ahead,” saidFawcus. The port is currently buildingtwo more ferry berths but considersthat much more extensivefacility changes will be necessary ifit is to meet future demand andmaintain high levels of service.Tecon Suape ringsthe changesICTSI has rung the changes at itsTecon Suape SA (TSSA) operationin Brazil in an effort to getback on track. Fernando Mota hasbeen replaced as president bySergio Kano, a former presidentof Suape Port Authority who hasgood political connections. JohannHutzler has left his post as commercialmanager, although a replacementhas not yet been found.Kano faces an uphill task. InJanuary Hamburg Süd group accountingfor 85 per cent of thebusiness shifted most of the callsto Recife.Kano, who helped oversee theprivatisation of the Suape containerterminal, has been in SãoPaulo visiting key line managersand is understood to be “very closeto securing at least one MSC service.”He is also targeting the cabotageservices of Aliança, P & ONL’sMercosul Line and Docenave,which quit Suape when TSSAannounced steep price rises.TSSA has been plagued by labourstrife and clashes with shippingline managers since it openedfor business in January last year (seeWorldCargo News, April 2002, p4and October 2002, p7). While itwas able to reach a compromiseover gang sizes with the unions,they are still too high by internationalstandards and its pricingpolicy has been fiercely resisted bythe shipping lines.Recife has been “rubbing itshands” at the unexpected returnof container business. Accordingto Pedro Melo, the port’s directorfor commercial relations, twostevedoring companies at thecramped, congested port, StartNavegação and Brandão Filho, areinvesting in new container handlingequipment to help them dealwith the flood of new services.The cabotage services of Aliança,Mercosul Line and Docenave areall now calling at Recife, therebyending their “Suape experiment”owing to “extortionate fees.” Asource at one line that was usingSuape said that TSSA’s managementtried to push up its chargesfrom Reais300 (US$86)/containerto Reais780. ICTSI paidUS$183.6 mill for Tecon Suapeback in March 2001. Accordingto some industry sources, this wasway too much and explains why,in their opinion, they are now“overcharging.”mental groups, however, remainopposed to the development, notso much because of the port developmentbut because of the proposedindustrial clusters that theport is intended to serve.The EMC is to be chaired byRob Midgley, a law professor atRhodes University, and containsrepresentatives of local businesses,environmental NGOs, local communities,the National Parks Boards,the local municipality and CoegaDevelopment Corporation, as wellas the two partners developing theproject - SAPO and P&ONedlloyd. Up to R4.65 bill is expectedto be invested in the portdevelopment over five phases, includingfinancing for the transferof manganese ore loading facilitiesand a petroleum tank farm fromPort Elizabeth to Coega.SAGT in rate rowAfter losing around 230,000 TEUto P&O Ports’ South Asia GatewayTerminal (SAGT) last year, theSri Lanka Ports Authority (SLPA)is using rate cuts to lure lines backto the state-owned Jaya ContainerTerminal (JCT) at Colombo.It is understood that the SAGTconcession provides for a commonprice and rebate scheme for a periodof five years, which does notexpire until next year. Under thisagreement the SLPA is requiredto consult with SAGT and give97 days notice of any change inrebates or base rates at JCT.Under new chairman ParakramaDissanayake, the SLPA hasmoved to recapture lost businessby negotiating service contractsfor the JCT terminal that includevolume discounts and, it is understood,serving SAGT with noticeonly once contracts are signed. Sofar this year six lines have signedup with the SLPA to call exclusivelyat JCT, including MaerskSealand, APL, Hanjin, Evergreenand Gold Star.SAGT maintains that, as perthe original agreement, there is noprice differential between the twoterminals but it is increasingly clearthat this is not the case. The chairmanof the Sri Lankan Instituteof Chartered Shipbrokers,Maxwell de Silva, has congratulatedthe SLPA for ending thecommon pricing and rebatescheme and welcoming pricecompetition in Colombo.Meanwhile, with Colombo’snorthern entrance reopened, theSLPA is moving forward with itslongstanding plan to convert theformer oil berth at the north pierinto a container terminal. A contractfor the supply of containercranes has been signed withItochu Corporation of Japan.The deal covers three 41 tonneSWL Panamax ship-to-shorecranes from IHI and eight 1 over5 RTGs from Sumitomo HI. Deliveryis scheduled for 14 monthsfrom the signing of the contract.The new terminal will increaseannual capacity at Colombo by400,000 TEU to an estimated 3.6mill TEU.Delays in the clearance of goodsat the Port of Tema, Ghana, haveprovoked a dispute between importersand clearing agents onone side and port security agencieson the other. Some importershave complained that securitycompanies were requiring containerswhich had already beencleared be returned to Customsfor re-examination and that Customsthen waited days before reassessingthese containers.This has resulted in extra demurrageon the containers andincreased transport costs for importersutilising local haulagefirms and there have been allegationsthat officials have demandedbribes to process incomingcontainers quickly.Many importers have refused topay for re-examination andparked containers have begun tocause congestion at the port,slowing processing times stillfurther and causing a total breakdownin relations between thetwo sides.A spokesman for security atWorldCargonewsTema grinds to a haltthe port confirmed the procedureof double checking and saidthat there had been a lack ofcommunication with importers.“The requirements of nationalsecurity demanded re-checking,”he said. The governmenthas promised to intervene. Somecompanies have begun to useother ports in the region.The dispute has blown up ata time when Tema was expectedto benefit from the impact of theongoing civil conflict in Côted’Ivoire on operations inAbidjan. Cletus Kuzagbe, operationsmanager for Ghana Portsand Harbours Authority, saidthat Takoradi had already beenasked to take much of the newtraffic but could be placed underyet more strain as a result ofthe situation at Tema.At the end of last monthPortcon International, the consultancyand management servicesarm of South Africa’s NationalPorts Authority (NPA),was awarded a 25-year contractto take over operations at Tema.March 2003 11

WorldCargonewsPSA/Cosco terminal talksChina Ocean Shipping Co(Cosco) is in talks with Singaporeport operator PSA Corp aboutowning or having a joint venturecontainer terminal in Singapore.“We have received a positiveresponse from PSA. We are lookingfor some terminals and somecooperation in Singapore,” saidCosco president Wei Jiafu, addingthat a joint venture would fit inwith Cosco’s plans to continuehubbing in Singapore.Cosco already has terminaloperating joint ventures at Kobein Japan and Long Beach in theUS. Wei said there would be moretalks with PSA management aspart of Cosco’s strategy to establishhub ports worldwide.Following the loss of Evergreen’stranshipment business tothe neighbouring Malaysian Portof Tanjung Pelepas last year, PSAThe government of Panama hasagreed to hand over 29 propertiesand land occupied by thePanama Canal Authority to enableHutchison Port Holdings(HPH) to expand its containerterminal at the Pacific port ofBalboa.The government’s earlier refusalto hand over the propertieshad triggered a restructuring ofthe way the government raisedrevenue from HPH and the othermajor port concession holder,Manzanillo International Terminal(MIT), at the Atlantic port ofColon.HPH had used the government’snon-compliance to withholdits rental payments, arguingCosco is interested in operating its own terminal in Singaporesaid it would be open to shippinglines owning terminals, having ajoint venture terminal with PSAor a dedicated terminal in Singapore.Cosco is the first to have expressedinterest in having its ownthat the move was in breach ofits concession arrangement, towin an estimated US$500 mill ina renegotiated concession deal.Meanwhile, HPH has draggedThai Prime Minister ThaksinShinnawatra into a dispute overthe bidding process for the concessionto operate a terminal atLaem Chabang port. HPH-controlledThai Laem Chabang Terminal(TLT), which lost its bid tomanage the C-3 terminal, has appealedto Thaksin to order an investigationinto alleged irregularitiesin selecting the final bidder.Although TLT offered thehighest rental of Baht24 bill(US$567 mill) for the 30-yearconcession, the Port Authority ofterminal in Singapore. It is understoodthat discussions withother shipping lines did notprogress far. The Chinese carriersigned a new long-term “virtualterminal” agreement with PSA atthe end of 2001.HPH fights its cornerThailand (PAT) selected TIPS,which had offered Baht16.5 mill.Japanese carriers NYK and MOLhold 22 per cent stake each inTIPS and Thailand’s Ngow HockGroup and other local firms theremainder.In a letter to Thaksin, TLT assistantgeneral manager ManotPalilai said PAT director-generalMana Patram had explained thathis company’s claim was rejectedbecause it had insisted on settingup a wholly-owned subsidiary tomanage the terminal. Manot saidhe did not believe this shouldhave been an essential point indetermining the award. The bidsshould have been decided onprice, he said.Upgradefor NacalaFollowing investments at Beira andMaputo, facilities at the Port ofNacala are to be modernised andimproved over the next three years.Mozambique’s Transport MinisterTomas Salomao announced lastmonth that private companies areto provide most of the required investment,although donor organisationswill also contribute.The Northern DevelopmentCorridor (CDN) consortium isexpected to be awarded a 15 yearlease to manage both the port andthe Nacala-Malawi railway beforethe middle of this year. The consortium,which includes AmericanRailroad Corporation and EdlowResources of the US, as well aslocal interests, signed a memorandumof understanding with thegovernment last month, underwhich it agreed to invest US$27mill in Nacala. An additionalUS$6.2 mill has already beenpromised by donors, while theUnited States Overseas Private InvestmentCorporation (OPIC) hasalso agreed to support the project.Trade via Nacala should take offfollowing the reconstruction of theNacala-Malawi line. State-ownedCFM Norte which manages theline hopes to carry 187,730 tonnesof goods to Malawi and 219,256tonnes altogether during the firsthalf of this year.The government has madeinfrastructural investment a priorityin its efforts to rebuild thecountry after over two decades ofcivil war. Economic growth averaging10 per cent/year over thepast five years has encouragedmore foreign companies to investin Mozambique as it rebuilds itsreputation as a transhipment centrefor much of southern Africa.PORT NEWSThe SILVER ISLAND is seen making her maiden call at Hutchison’s KoreaInternational Terminals (KIT) in Kwangyang to launch a new direct servicebetween Korea and Vietnam. Jointly operated by Sinokor and HanjinShipping deploying three vessels per week, the service calls at KIT everySaturday and leaves on the same day for Busan, Hong Kong, Ho Chi Min,Singapore and Pasir Gudang. The service is claimed to offer significantsavings to shippers as it only takes six days from Vietnam to Kwangyang,which is used by Hanjin as its transhipment port for cargo destined for theUnited States. Paul Ho, CEO of KIT commented, “We are very pleased tohave commenced this new service between Korea and Vietnam. The newservice is significant as we strive to build KIT into a major transhipmenthub of the region”Esmeraldas stalledThe Nuevo Milenio consortium’smanagement and operations concessionat the port of Esmeraldasin Ecuador, awarded in early February,has effectively been blockedby local business interests and thecity mayor. They object to one ofthe conditions in the 25 year concessionagreement, which obligesthe consortium to contribute justUS$200,000 every other year forsocial investment, despite this beingthe best offer of five receivedby the deadline.During a local meeting heldto grant the contract, which wouldthen have to be ratified by the Ecuadoriangovernment, four keymembers did not participate, leavingthe meeting without a quorum.The port authority (APE)’sdirector general Mae Montanowas despatched to Quito to discusspossible solutions with presidentLucio Gutiérrez, only to belater replaced by Bolívar Vázque,who has been asked to prepare areport on ways to take the privatisationforward. However, themayor, Ernesto Estupiñán, hasasked for the concession processto be indefinitely suspended.Nuevo Milenio, as part of itscontract, will have to upgradethree quays, as well as modernisestorage facilities for both generalcargo and containers. In addition,it will build a further two newquays. Rent of US$825,000 willbe payable each year, although theport generates annual revenues ofUS$7 mill.12March 2003

PORT NEWSNew ownerfor Port ofGisbourneAfter a protracted process the Port ofGisborne in New Zealand’s North Islandhas finally been sold to Eastland EnergyTrust, effectively maintaining the port asa community asset.The Port of Gisborne has been unableto make any capital investments forseveral years due to debts of NZ$17 milland it is now facing a NZ$23 mill lawsuit from the owners of the JODY FMILLENIUM, which ran aground after allegedlybeing ordered out of port in dangerousseas last year. The port’s new ownershave changed its name to EastlandPort in a bid to make a fresh start anddisassociate it from the pending law suit.Eastland Port could boom if it can findat least NZ$25 mill to increase capacityas forestry exports from the region arepredicted to rise 5-fold over the next 25years. Hopes that the sale would lead toinvestment being fast-tracked werequickly dashed, however, when chairmanThomas Carlson issued a statement sayingthat “while some of the port customerswould like to see some immediatechanges in the operations of the port,these are not possible as the due diligenceprocess undertaken by the communitytrust revealed many problems that haveto be addressed.”The first issue the new owners musttackle is a report from the Maritime SafetyAuthority that identified serious deficienciesin the port’s safety procedures andimposed tighter conditions on future operations.Sydney’sX-ray visionSydney’s X-ray container examinationfacility, the second of four being commissionedby the Australian CustomsService at major ports, has begun operations,although critics say throughput atthe Melbourne facility, opened last year,has not met expectations.The Minister for Justice and Customs,Senator Chris Ellison, claimed the technologywould enable Customs to inspectall containers identified as high risk. TheSydney facility, at a cost of A$56 mill overfour years, will inspect up to 100 containersper day, with each X-ray andanalysis taking about 10-15 minutes.Current physical examinations can takewell over eight hours.Senator Ellison said the new Sydneyfacility would increase inspection rates20-fold and enhance Customs’ capacityto detect prohibited goods includingdrugs, firearms and quarantine items thatpose a threat to Australia.The facility is claimed to have alreadyproved itself during the testing stage bydetecting an attempt to smuggle morethan 7 mill cigarettes. This one detectionalone prevented an attempt to evadethe payment of more than A$1.25 millin legitimate revenue.Customs has developed integrated facilitiesto incorporate the new scanninghalls and the existing examination facilities.The facilities also utilise other technologiesincluding ionscan particle analysisequipment and pallet X-ray systems.The X-ray units are being suppliedby Chinese manufacturer NucTech CoLtd, with Brisbane and Fremantle facilitiesdue to be completed by the end of2003. However, Customs has been strugglingto overcome congestion at the Melbournesite, which was reportedlyprocessing only around 20 containers perday earlier this year. The Service blamedlate reporting of cargo and by mid-Februarywas claiming throughput had risento 65 containers per day. Boxes are generally“back in the stack” 90 minutes afterinitial pick-up, provided they are notheld for a full physical search.Adelaide topping up on wineSouth Australian port owner/operatorFlinders Ports (FP) is to build a newA$13 mill storage and export warehouseto be used as a shipment pointfor wine exports by Australia’s largestwine producer, Reynella-based BRLHardy Ltd.FP says the project is the first significantcommitment by the state’s keyexporters to support the company’splans to redevelop the Outer Harborunder a long-term A$400 mill upgradeprogramme (see WorldCargo News October2002, pp22-23).Construction of the new 20,000 m 2facility is expected to consolidate BRLHardy’s South Australian wine export facilitiesthrough Outer Harbor, complementingan existing, smaller wine distributionfacility constructed in 2001. Thewarehouse, which will have the capacityto store 1.6 mill cases of wine, will besituated adjacent to the CSX Terminalat Outer Harbor. Construction is due tobe completed by the end of the year.Flinders Ports CEO Vincent Tremainesaid the development would consolidateOuter Harbor’s position as a central hubfor South Australia’s wine industry. Expectedvolume growth may necessitatethe development of a second warehousein the short to medium term. “Our ConceptPlan for the future development ofOuter Harbor recognises that a major opportunityexists to develop an integratedexport wine logistics centre with facilitiesextending from warehousing to bottlingand packaging,” he said.Mick Scammell, BRL Hardy groupmanager, corporate services, added thatthe consolidation of current transportand logistics arrangements, including theconsolidation of a number of warehousesto a single location at Outer Harbor,would provide significant benefits as wellWorldCargonewsas result in reduced handling costs.“The new facility will support ourcurrent exports and provide for thecontinuing growth we expect into thefuture,” Scammell said.In October last year, Flinders Portsunveiled a A$400 mill Concept Plan -including the deepening of the mainchannel from 12.2m to 14m - designedto redevelop Outer Harbor into a moreglobally competitive port within thenext 10 years.The plan includes the constructionof wine storage and containerisationfacilities, a further three warehouses forcontainerised or bulk cargoes, a coldstore and a mineral sands storage facility,plus an upgrade of the current wharfstorage for motor vehicles.March 2003 13

WorldCargonewsGreenbrier Europe looking upThe Greenbrier Companies says that itsmove to restructure its European operations,aimed at improving financial performanceand recapitalising ownership, isbringing improved financial results andincreased market share.It is aiming to complete this year therecapitalisation of Greenbrier Europe,comprising Wagony Swidnica SA in Polandand the former Adtranz freightwagon sales, marketing and design groupin Germany (Greenbrier GermanyGmbH). Operating expenses are said tohave been reduced by US$5 mill/yearcompared to fiscal 2001.Greenbrier’s European backlog at the14end of January this year was 1300 unitsvalued at US$107 mill, up from 1000 unitsvalued at US$70 mill last August and 400units valued at US$25 mill last May. Salesin fiscal 2003 are anticipated to exceedUS$100 mill, up from US$62 mill in 2002.The order book includes one fromFreightliner in the UK which couldamount to around US$30 mill for up to400 60ft flats. Initially 134 have been contractedfor delivery by September.This is Wagony Swidnica’s firstintermodal order from Freightliner although250 coal wagons have previouslybeen supplied to Freightliner Heavy Haul.Other work-in-progress at the plant includes186 timber-carrying wagons of anew design for Green Cargo AB in Sweden.The first deliveries of these are duefrom Poland this month.For first quarter of fiscal 2003 (September-November2002) Greenbrier reporteda net loss of US$0.5 mill on revenueof US$97 mill from North Americanoperations, compared to a loss ofUS$5 mill on sales of US$71.5 millduring the first quarter of fiscal 2002.In a possible new setback to the recovery,however, production of up to 800 dropdeck cars for CPR at Greenbrier’s TrentonWorks, Nova Scotia, aimed mainly at lumbercarriage, had to be halted in February,following a preliminary injunction grantedin a Pennsylvania court to National SteelCar in connection with a patent dispute.NSC is trying to set aside a Canadian patentheld by Greenbrier on the ground thatit violates one that it holds in the US.Greenbrier has expressed confidence thatthe injunction will be overturned.● Times remain tough for wagon buildersgenerally, as illustrated by S&P cuttingTrinity Industries’ corporate creditrating at the end of last year. As of theend of September 2002 Trinity had morethan US$500 mill of debt outstanding onits balance sheet. S&P remarked that therating actions reflected the severe and protracteddecline in new railcar demand,which accounts for around 43 per centof Trinity’s total sales. S&P added, however,that the “outlook is now stable.”INLAND/INTERMODAL NEWSPR at thedoublePakistan Railways (PR) has launched anambitious plan to replace the 1760 kmtrack between Karachi and Peshawar, thestaging post for Afghanistan (via theKhyber Pass) and China’s far west, in orderto achieve faster, more competitivetransit speeds and strengthen the appealof Karachi/Qasim as transit gateways.Even more ambitiously it wants to doublethe track along its entire length overthe next few years and is seeking foreignbacking.Agreements have reportedly beensigned with Chinese and Austrian companiesto supply 79,000 tons of rail trackfor the current year at an estimated costof US$125 mill to kick off a three yeartrack replacement programme. Theproject is jointly funded by the PRC,Austria and the Jeddah-based IslamicDevelopment Bank. Voest Alpine Austriahas already supplied part of the contractedtrack, while shipments from China are expectedto start within a couple of months.PR has also opened up talks withATN-SKC, an international consortiumof seven companies from Canada, Egyptand Saudi Arabia seeking investment todouble the track. There are four differentproposals on the table. According to PR,ATN-SKC has expressed a willingness toinvest up to US$6 bill in this and one ortwo other major projects in Pakistan.In another development, PR is to get1300 new freight wagons, mostly financedby soft credit worth US$62 mill from theExim Bank of China. Dongfang ElectricCorp (DEC) is providing the wagons, althoughonly 420 will be built in China,with the balance of 880 to come fromLahore Moghalpura Railways workshopover the next two years.According to Railways MinisterGhous Buksh Mehar, DEC was low bidderin the international tender held lastyear. He highlighted the transfer of technologyelement, enabling PR to buildmost of the wagons itself.China is also supplying PR with newlocos. PR’s overall freight market sharetoday is estimated at 20 per cent. Its servicesare mainly concentrated on theKarachi-Lahore corridor.Andersons’Railcar dealUS-based Railcar Ltd, a subsidiary ofProgress Rail Services Company, hassigned a letter of intent to sell predominatelyall of its railroad leasing assets toThe Andersons Inc.Under the deal, Railcar, a full servicerailcar and locomotive leasing and managementcompany headquartered in Atlanta,GA, will sell approximately 7,000railcars and 48 locomotives, most of whichare currently under lease, to a limited liabilitycorporation (LLC) that will beowned by a consortium of investors, inwhich The Andersons will own a minoritystake. The Andersons’ Rail Group willmanage the assets for the newly formedcompany for a management fee. Proceedsof the sale will be used to pay off RailcarLtd lease obligations.Mike Anderson, president and CEOof The Andersons, said the company’s participationin the new LLC supports itsstrategic growth initiative for the RailGroup. “We have been in the railcar leasing,fabrication, maintenance, and componentmanufacturing business for overten years. The business has been profitableand has good growth potential. It fitswell with our core competencies. It alsogives us the ability to offer our customersexpanded services and unique lease opportunities.This new arrangement willcreate additional revenues for the RailGroup through the management fee tobe paid by the LLC.”The deal will nearly triple the numberof railcars under the management of TheAndersons Rail Group.March 2003

WorldCargonewsWagons roll forGB RailfreightGB Railfreight Ltd (GBRf) hastaken delivery of 22 twin-coupled164 tonne glw container flats, developedby Marcroft Engineeringand manufactured at its workshopsin Stoke-on-Trent, England. Thefirst to be purchased for GBRf,through HSBC Rail (UK) Ltd, thewagons underscore the operator’sgrowing success in the intermodalfield and will be used to movecontainers between Felixstoweand Birmingham (Hams Hall) andSelby, for Medite Shipping.The order was worth around£2.3 mill and was placed withMarcroft by HSBC in the face ofstrong competition from otherGBRf is investing to enhance furtherits intermodal services for shipping linesUK and European manufacturers.The new flats have been designedto carry a range of containersizes with a maximum payload of61 tonnes per 60ft platform. Theyare fitted with Y33 type bogies andare capable of 75 mph operation inboth empty and laden conditions.The wagons can take any combinationof 8ft 6in high containerin any position irrespective of load,so there is no need to leave gapsas is sometimes the case with themultifrets GBRf has been using.Meanwhile, Freightliner (FL)is investing in 134 new 60ft flatswith Y25-derived bogies andstandard 980mm deck heights for8ft 6in high containers in W6Agauge. They will be delivered fromGreenbrier Europe’s Polish factory(Wagony Swidnica) in early September(see page 14).The number of 9ft 6in highcontainers is growing all the time,but FL is banking on being ableto carry 9ft 6in high cubes onstandard flats as a result of SRA/Network Rail gauge enhancementslong term, rather than havingto increase its fleet of relativelyexpensive specials (currently madeup of megafrets and LTF 25 units).This conservative approachcould come unstuck as it is relyingon action by someone else,particularly as the Treasury is reiningin railway spending. Hedgingits bets, therefore, Freightliner isin discussions with Greenbrierabout the possibilities for a W6Acompliant 9ft 6in high carrier.● FL Heavy Haul has started runninga daily Ford car train forANSA Logistics Ltd (part ofAutologic Outbound services)from Corby to Garston. This divisionalready runs car trains fromDagenham, Southampton andBristol to Garston and Mossend.One of the last pieces of the jigsawregarding the Heathrow, Terminal5 construction project hasfallen into place. PFA will be suppliedintermodally by RMCRugby Cement in 30ft tank containers,using EWS as the rail carrierfrom the loading site nearDaventry to the Colnbrook railhead.The tank containers are lightweight(2 tonnes) units with anmgw of 32 tonnes, designed andengineered by Clyde MaterialsHandling in the UK and built inthe Czech Republic. The first trainPending completion of the 2500tonne cement store at Colnbrook,to allow supply in PCA tankerwagons by Freightliner HeavyHaul, Lafarge is supplying cementdirect to the construction site bytruck. Although the T5 planningconsent stipulated that all inboundconstruction materials hadto be delivered by rail (seeWorldCargo News January 2002,p22), a BAA Heathrow spokesmanstates that “there has always beenan understanding that until theColnbrook logistics centre is readysome construction materials willarrive at the airport by road. Atthe T5 public inquiry a cap wasimposed on the amount of materialsthat could be delivered to thesite by lorry and we are wellwithin this cap.”This still begs the questionwhy Lafarge is not supplying BAA,as an interim measure, byintermodal rail to Colnbrook usingits piggyback trailers andMega-3 wagons. This system wasfinally launched last SeptemberINLAND/INTERMODAL NEWSHeathrow T5 deals...load should be dispatched towardsthe end of this month.At Colnbrook the tanks willbe transloaded to skeletal trailersby Containerlift using one of itsSteelbro Mark VI self-loadingtrailers and then drayed to site. Thetanks are fitted with blowers to fluidisethe PFA for easy dischargewithout tipping. Foster Yeoman isalready supplying aggregates toone new rail siding at Colnbrook,again using EWS as the underlyingrail carrier, and transferring theloads there to trucks for the shorthop to the construction site....interim measure?with much fanfare as a “showcase”of the SRA’s award scheme underwhich £2.9 mill was allocatedto Lafarge (then Blue Circle Industries).Lafarge explains that thiswould have meant installing areach stacker at Colnbrook. Sincethis is stating the obvious, it mustbe assumed that the intermodaloption is deemed too expensive,possibly because the groundwould need to be reinforced tosupport the heavy front axle loads.What does this say for the futureof piggyback?As it happens, the piggybacktrials scheduled between Lafarge’sWestbury works and Southampton(Freightliner’s Millbrook terminal,for onward delivery byroad), have still not commenced,although they were announcedlast September. According toLafarge, some “tweaking” had tobe made on the Mega-3 even afterthe launch, while an “unexpectedplanning hitch” intervenedat Westbury.Enfield scrappedAn independent review of SydneyPort Corporation (SPC)’sproposed A$90 mill EnfieldIntermodal Terminal (seeWorldCargo News April 2002 p1)has found the facility would be“too big” for its suburban location.The review, conducted byformer Liberal Transport MinisterMilton Morris, asserts the expected1,600 truck movementsper day would overstress surroundingareas.The NSW Opposition hadclaimed that the Labor Government,which faces an election onMarch 22, was delaying the report’srelease - implying that oncere-elected it would press aheadwith the plan, which had beengranted major project status enablingthe government to overrideobjections, regardless of the outcomeof the report.But the government, which iselectorally sensitive in inner suburbanSydney seats, announcedMorris’ findings and accepted hisrecommendations, effectively cancellingthe project, which facedconsiderable organised communityopposition.NSW Transport Minister CarlScully has now appointed Morristo head up a new committee “toWhat might have been: plans for theEnfield Intermodal terminal inSydney have been droppedconsider the urgent goal of shiftingmore containers from road torail.” This group will include theDepartment of Transport, Roadsand Traffic Authority, Rail InfrastructureCorporation and theSPC – plus, interestingly, the portsof Newcastle and Port Kembla.The SPC expressed its disappointmentwith the Enfield outcomebut said it would work withall parties to find new solutions towhat now becomes an even moreurgent problem of landside congestion.The Corporation’s proposalwas not without its industry critics,with some – coincidentally includingowners/developers of alternativefacilities – claiming thatthe location was too close to portand the concept larger than required.The government says a seriesof small ports in western Sydneyis now being proposed.Logically SPC also needs to beable to demonstrate it has landsidetraffic issues under control if it isto win broad support for its PortBotany third terminal development– and that cause will hardlybe helped by this setback.16March 2003

INLAND/INTERMODAL NEWSLötschberg - what’s the point?Alberto Grisone, managing director ofRAlpin AG (Ralpin), has launched an attackon the Italian authorities’ dilatoryapproach to improving rail assets whichconnect with the Lötschberg base tunnel.Major improvements at Lötschberg,Simplon and the Gotthard are aimed atprocuring a massive shift of Italy-Germany/northernEurope flows from roadto rail after 2007, but it looks like the limitingfactor will be bottlenecks on the Italianside.As previously reported in WorldCargoNews, Ralpin is a joint venture of SBBCargo (40 per cent), Hupac Intermodal(30 per cent) and BLS (30 per cent)formed in 2001 to operate RoLa servicesbetween Novara and Freiburg-im-Breisgau in Germany via the Lötschberg.Originally Ralpin was to be a four-waypartnership also involving Trenitalia butas yet the latter operator has not taken upits quota.Currently the Novara-Freiburg runtakes 11 hours but it could be cut to 9-9.5 hours, said Grisone, lamenting the factthat the 90 km stretch between Novaraand Domossodola takes four hours whilethe 320 km stretch between Domossodolaand Freiburg takes only seven hours.The problems could be overcome relativelysimply, he argued, since only minorimprovements were required to the(single track) Domodossola-Novara line,along with multi-current sidings atDomodossola 2 station and rockslide protectionat tunnel entrances.Ralpin dispatched 3400 trains last year(its first full year) and carried 44,500HGVs. Traffic grew 35 per cent in thefirst two months of this year. “We startedwith 55 trains a week and are now up to84,” said Grisone. The aim is to reach 90/week by September and triple this by2007 when the new Simplon (Sempione)tunnel is completed in 2007.Punctuality levels are still not acceptable,however, says Ralpin. Only 70 percent of trains arrive within one hour ofscheduled time, well outside Ralpin’s targetof 90 per cent of trains being less than0.5 hours late.● DB Cargo, BLS Cargo and FerrovieNord Milano Esercizio Divisione Cargohave introduced a five train pairs/weekintermodal service for swap bodies, containersand tanktainers between Novaraand Gemersheim, via Domodossola andBasle. The train has a maximum trailinglength of 550m and weight is 1300 tonnesalthough this may be increased to 1600tonnes in the near future. Slated transittimes are 13.5-14 hours. The partners alreadycollaborate on a six pairs/weekservice between Milan (Melzo) andZeebrugge introduced in 2001.RAlpin’s managing director Alberto Grisonehas issued a stark warningWorldCargonewsCobelfret inDuisburgRo-ro operator Cobelfret is to set up amulti-purpose terminal occupying 50,000m 2 at the Port of Duisburg’s new Logportfacility, which has purpose-built access toroad and rail (see WorldCargo News August2002, p22). The “trimodal” facilitywill be used mainly for movements of unaccompaniedtrailers and new automobilesto/from Duisburg and Cobelfret’sterminals in Rotterdam, Vlissingen andAntwerp, although managing directorChristian Cigarang “has not ruled out”Antwerp as well.The deal underscores Duisburg’s rôleas a modal shift node for the Rhine seaportsand helps bear out DuisburgerHafen AG’s long term vision for Logport.Cobelfret intends to exploit its new“Riverliner” ro-ro, estuarial barges in itsnew service offer. As previously reported(see WorldCargo News October 2002, p48)three of these innovative, 110, LOA by12.5m beam vessels, fitted with a 100tonne stern ramp, have been ordered fromthe Damen shipyard and the first servicesare slated for December.VICS buildsnew blocksAn “accelerated” container block trainservice has been introduced by VostochniyInternational Container Services fromVostochniy to Almaty (formerly Alma-Ata) in Kazakhstan, via Lotok in the RussianFederation, south of Bryansk. Lotokis some 2500 miles west of Almaty.According to VICS, the first train leftNakhodka-Vostochnaya station at 23.51hours local time on 27 February and passedKhabarovsk at 20.30 hours local time on 1March. On the same day, at 22.15 hoursMoscow time, the train was transferredfrom the Far East to Transbaikal railway lineat Arkhara junction.It progressed along the Transbaikal linein accordance with its schedule and, at04.00 hours Moscow time on 3 March, itarrived at Petrovsky Zavod junction, whereit was switched to East Siberian railway,with arrival at Almaty slated for 8 March.● The Port of Vladivostock has formed analliance with Petropavlovsk-Kamchatskyport in the Kamchatka peninsula, they arelooking to set up a joint venture whichwill implement a uniform through tarifffor container transport.According to Kamchatka’s vice-governorVladislav Skvortsov, the alliance isthe first step towards re-establishingregular liner services between the twoports. Two-way container traffic betweenVladivostok and Petropvlovsk-Kamchatsky reached 38,290 TEU in2002 and is growing all the time. Spasmodicservices are currently provided byFESCO.● Vostochniy recently become the fourthRussian port to join the Tokyo-based InternationalAssociation of Ports & Harbours,joining Nahodkha, Vladivostock,and St Petersburg.March 2003 17

WorldCargonewsAnger at rail asset saleWabtec ballastwagon orderWabtec Rail Ltd, the UK division of Wabtec Corporation,has been awarded a £4.49 mill (US$7 mill)follow-on contract to build 50 specialised ballastwagons for Network Rail (formerly Railtrack) fortrack maintenance and building purposes.The new contract follows the successful deliveryover the past two years of 190 freight wagons of thesame type to Network Rail. These wagons played asignificant role in the on-time completion of thefirst phase of the Channel Tunnel Rail Link, the newhigh-speed line being built between London andthe Channel Tunnel.Wabtec Rail designed and built the wagons,which can carry up to 65 tons of ballast and travel atspeeds up to 60 mph. Ballast is discharged to eitherside of, or between, the rails through doors that arecontrolled by one operator using a hand-held radioremote-control system. The wagons operate as a fixedset of five, with one in each set containing a dieselgenerator to power the ballast-discharge doors onall five wagons.The new wagons and associated spares will bebuilt at Wabtec’s Doncaster, South Yorkshire, worksand be delivered during 2003.“Network Rail is a valued customer,” said JohnMeehan, managing director of Wabtec Rail. “Thisfollow-on order reflects the confidence that NetworkRail has in our company and products, and itdemonstrates our continuous efforts to use leanmanufacturing techniques to improve quality, delivery,cost and performance for our customers.”Intermodaltrucking guideIntermodal Transport by Land in the United States isthe title of a new guide to intermodal truckingwritten by Malcolm J Newbourne and publishedby Cargo Transport Corporation. This is a comprehensivework exceeding 250 pages, whichmanages to be interesting to academics, researchers,journalists etc at the same time as being writtenin a “no nonsense” style which provides clear,easily-referenced information and practical advicefor those working “at the coalface.”There are sections on pricing methods (prosand cons), insurance matters, driver recruitmentand retention, railroad and steamship line equipment,equipment pools, motor carrier “vulnerability,”safety concerns, agents, brokers, federalrequirements, etc. There is also a useful glossaryof terms and a highly informative appendix onseals, which lights up some dark corners andshould enable trucking firms to avoid a numberof pitfalls.Copies are available from: Cargo Transport Corporation,PO Box 2322, Marco Island, FL 34146,USA. Telephone: (+1) 941 642 3070. E-mail:ecargoport@att.net. Website: ecargoport.com18Australian rail privateers are angry over the outcomeof an enforced disposal of surplus Pacific National(PN) locomotives and rolling stock after one companyappears to have secured all useful equipment ina closed tendering process.PN, the former National Rail and FreightCorpacquired in February 2002 by joint owners Toll Holdingsand Patrick Corporation, was required to disposeof a specified quantity of stock after competitionauthorities raised concerns that the new entitywould control the vast majority of standard gaugelocos and wagons. However it emerged earlier thismonth that Broken Hill-based Silverton Rail hadpurchased 99 locomotives with conditional contractsfor another two, plus 339 wagons, with conditionalcontracts for a further 33 from PN, with most remainingequipment ending up in the hands of railmuseums and preservation railways.The news infuriated other rail companies, includingFreight Australia and Lachlan Valley, which havemade allegations of “sweetheart deals” and suggestedthe sale was hardly in the intended interest of morecompetition between operators. However, Silvertonclaimed its pursuit of the equipment “has a long history”and is geared to the company’s plans for expansionin the freight market. The company said ithad been in negotiation with National Rail andFreightCorp but the sale process had suspended anydeals.● Pacific National is to develop two-tier containertrain services and rate levels for regional New SouthWales. The move appears to be the company’s reactionto harsh criticism - particularly by shipping lines- of its decision to consolidate intermodal terminaloperations in the greater Sydney area (see WorldCargoNews October 2002 p26). According to PN, dailypick-ups of freight from multiple origins and multipledestinations with excessive shunting at heavilystaffed city freight yards is “fundamentally unsustainable,”especially with Community Service Obligationsubsidies ending in 2004.Future PN pricing structures will reward aggregationof freight on trains that need minimal handlingor shunting, but will provide multiple origin/destination services for businesses that can pay theextra costs involved. Prices will also reflect earlierbookings, which ensure maximum train loadingswhich still meet stevedoring windows. Just-in-timefacilities will be available at a higher rate.The Ukrainian anti-trust commission has givenUkrrechflot, Ukraine’s leading river/short sea shippingcompany, the green light to take over the inlandport of Dnipropetrovsk (River Dneiper). Thecountry’s main inland ports are already owned ingreater or less measure by Ukrrechflot, throughdaughter companies, viz: Zaporizhzhya - 94 percent; Kherson - 34 per cent; and Mykolayiv - 28per cent. The stake it is taking in Dnipropetrovskhas not been yet disclosed.Dnipropetrovsk has been the “missing link”from a large vertically integrated structure controllingaround 45 per cent of overall Ukrainiansea and river freight. According to Ukrrechflot’smanagement, integration of its activities and thoseof the port has been on its agenda for some time.INLAND/INTERMODAL NEWSDnipropetrovsk taken overDnipropetrovsk has handled more than 8000TEU during the past three years shipped by theDnipropetrovsk-Istanbul-Varna-Ilyichevsk serviceand this traffic is growing by between 15 and 20per cent/year. The container terminal is being remodelledand expanded and there are plans to acquirea gantry crane this year.Up to now it has not been clear how the portwould raise the funds, since Ukrainian inland portsare not allowed to collect port dues. Ukrainian riverports were privatised in 1992 but by the end of the1990s, most operations had all but ceased due tohigh channel and lock dues. Ukrrechflot, a jointstock company in which foreign investors now ownmore than a 25 per cent share, is midway througha major 5-year development plan (2000-2004).March 2003

INLAND/INTERMODAL NEWSNew reefer swap designThe TRAIN della Risaia consortium, whose membersinclude Ansaldo, ENEA, Uniontrasporti,Costamasnaga, Fantuzzi, D’appolonia and Trenitalia,has developed a new passive refrigeration system forcontainers and swap bodies, which is claimed to becapable of maintaining temperatures for 10-20 days.Developed for Trenitalia Cargo and based on theuse of “thermo accumulators” the system is aimedparticularly at the intermodal transport of fruit andvegetable products. TRAIN claims that the new passiverefrigeration technology will make intermodaltransport preferable to the all-road solution.Advantages claimed for the system include thermalself-sufficiency without energy consumptionduring operation, no maintenance and operationexpenses, no noise since there are no moving partsand a superior ability to maintain product freshnesscompared to more traditional transport methods.Similar to systems based on the use of eutectic plates,the new passive refrigeration system works by absorbingheat through the pre-cooling of a thermal “battery,”which contains a liquid with a melting pointthat helps maintain the temperature in the container/swap body at an optimum level for fresh produce.The pre-cooling system functions via the circulationof a special gas through the evaporation circuitof the thermal battery. Once the optimal temperaturehas been reached, the system is self-sufficientand capable of maintaining that temperaturefor up to 20 days from the closure of the doors.The system is charged prior to shipment or priorto loading the products. If necessary, it is possible torecharge the system and begin the cooling cycle again.Tests made with the new refrigeration system inWorldCargonewsTRAIN says the new passive refrigeration system will makeintermodal transport preferable to the all-road solutiona 7.82m long reefer swap have shown it to workextremely well. The length of time that produce canbe preserved is on average twice that of conventionalrefrigeration methods and energy consumption isestimated to be 50 per cent less, TRAIN says.The new system has been successfully evaluatedby the Italian National Research Council, whichstudied its energy consumption and practicality, andby ISMA (Experimental Institute for AgriculturalMechanisation), which analysed the preservation anddecay characteristics of produce stored using the newsystem versus produce stored in traditional refrigerationsystems.Wagons rollIndian rail wagon manufacturers have received aboost with Indian Railways (IR), their main customer,announcing it will increase its order for wagonsand locomotives in the new financial year beginningnext month.Last year the railways had indicated they couldbuy up to 17,000 wagons but they bought only 8,400.Railway officials now estimate that there is a shortageof nearly 20,750 wagons and 154 locomotives.Nearly a dozen Indian companies manufacturerail freight wagons, but many of them are running ata loss. IR earmarks a budget for procuring wagonsannually but often the money is diverted to buyingpassenger coaches.However, in the first seven months of the currentfinancial year IR met its incremental loadingtarget. Its freight business increased by 11 per centbetween April and October last year in terms of nettonne per kilometre.Italo-Spanishjoint ventureTrenitalia and Renfe have launched a 50:50 jointventure, LMC Logistica Mediterranea Cargo SA, todevelop bilateral rail freight business (through France)and, looking ahead, to become an important playeron TEN corridor 5 (Kiev-Lisbon). LMS is based inBarcelona with Giovanni Rocca (Trenitalia) as chairmanand Juan Manuel Chavarrias (Renfe) as managingdirector. Other Board members are RobertoRenon and Juan Antonio Villaronte.Hispano-Italian trade has shot up in recent years.In the 1996-2000 period it increased annually by anaverage of 11.8 per cent (Spain-bound) and 2.7 percent (Italy-bound). But rail’s share is a dismal 1.7 percent. Trucking has a 46.3 per cent share, shipping 44.3per cent and air cargo the rest.LMS’ first trains are due to start in June and theplan is to build up business to 194 train pairs/week onthe 1000 km run between Milan (Staz. Garibaldi) andBarcelona (Morrot) and 92 pairs/week betweenReggio Emilia and Buriana (Valencia), a distance of1461 km. Door-to-door services are available.It is understood that LMS will operate a fleet ofTalgo dual gauge wagons of various kinds, includingintermodal flats, although no details are available. (Avariant would be required for Ukraine business asIberian and Russian broad gauges are different).As SNCF Fret boss Louis Gallois has promisedfull adherence to EU liberalisation (15 March), LMScould potentially operate in France. However, perhapsnot wishing to “rock the boat,” it will use Frenchdrivers and locos for the transit between the Italianand Spanish borders.● Last month the French track authority RFF revealedthat five licensed rail undertakings had appliedto operate in France. One of these isRail4Chem, the Swiss-German tank operator.March 2003 19

WorldCargonewsVictorian Transport Minister Peter Batchelor (left), Tim Blood, managingdirector, Australia and New Zealand, for P&O Ports (centre) and Dr ChrisWhitaker, CEO, Melbourne Port Corporation (right) are pictured last monthat the official opening of the A$20 mill intermodal upgrade at Melbourne’sWest Swanson Dock. The project restores dual-gauge direct rail links to theP&O Ports facility and feeds a new P&O Trans Australia (POTA)intermodal terminal behind the dock. A partnership between MelbournePort Corporation (MPC) and POTA, the development is slated to play akey part in lifting rail’s share of port traffic to 30 per cent by 2010. MPCdesigned and built the new 1500m dual-gauge rail access track that runsbeside Footscray Road from Appleton Dock rail line to Dock Link Road. Itincludes a dual-gauge siding, on the east of Dock Link Road, for shuntingNorfolk Southerndown Mexico wayNorfolk Southern Corporationhas formed a Mexican subsidiary,NorfolkSouthernMexicana, S deRL de CV (NSM), to market therailroad’s transportation and logisticsservices in Mexico.“We believe the time is rightto raise our marketing profile inthe Mexican market,” said IkePrillaman, NS vice chairman andchief marketing officer. “With thecontinued strengthening ofNAFTA, and given our extensiveservice territory in the east, wehave had six consecutive years ofgrowth in our Mexican traffic,both in volume and revenue.”NS’ director Mexico, TonyLaRosa, will continue in that role,providing direction for NSM.“With the formation ofNorfolkSouthernMexicana, wewill serve both US and Mexicancustomers involved in theNAFTA trades and also furtherstrengthen our partnerships withwestern rail carriers,” LaRosa said.“NorfolkSouthernMexicanawill assist us across the enterprise,including identifying new carloadbusiness, such as conversion oflong-haul truck traffic to the rails,and providing additional supportto recent NS intermodal initiativeslinking the two countries,”he said.BDP addsin AsiaBDP Asia Pacific has opened afull-service, third party regionalchemical distribution centre inSingapore to augment the privatewarehouse and distribution centresit manages in Hong Kong andMalaysia. As with other BDP facilities,operations at Singaporeare based on web-based technologiesfor data, inventory andwarehousing management.Situated within the Jurong IndustrialDistrict, the centre consistsof three separate facilities, totalling12,000 m 2 . Integrated logisticsservices, such as trademovement, redistribution andshort- and long-term warehousing,are available at the site. Alsoon offer is fully documented containerconsolidation/deconsolidation,with pick-and-packand relabelling. In addition, classcargo management is available forsensitive or temperature-controlleditems.Using BDPCustomer.com, customersof the Singapore centrecan manage inventory and trackshipments by means of a singlesign-on, customer-centric websitelaunched by parent companyBDP International in 2002. Forexample, integrated BDP Dataapplications offer a variety of historicaland real-time reports forclients, through an online datawarehouse, one of several supplychain visibility and analytical toolsthat reside on BDPCustomer.com.BDP Asia Pacific, which has19 offices in nine countries, offerslive inventory status and shipmenttracking throughout Asiaand worldwide by means of itsparent company’s global, webbasedBDPXpedion platform andnetwork of strategic alliances.The European Chemical IndustryCouncil (CEFIC) is strengtheningits chemical Transport Safetyand Quality Assessment System(SQAS) programme through revisionsof the rail and tank cleaningmodules and a successful effortto promote the regimeamongst a greater number of industryusers across Europe.The SQAS Service Group,which was created in early 2002to ensure sustainable operation ofSQAS, now has 26 member companies,and efforts are underwayto increase awareness of thescheme and to gradually expandthis membership. SQAS workshopshave been held with representativesfrom the chemical andtransport industries in France, theNetherlands, Austria, Switzerlandand Sweden. Eastern Europe, too,is expressing interest in employingSQAS, and similar workshopsare planned for Hungary and theCzech Republic.SQAS is based on the principlethat the results of a single assessmentof a logistics service provider(LSP), carried out by atrained, CEFIC-accredited inspectorand filed on a central database,should provide the basis foran informed choice by a chemicalshipper on whether to securethe services of that LSP.The SQAS scheme for roadtransport (SQAS Road) was thefirst module for which an electronicdatabase system was developedand launched at the end of2001. Today, over 230 assessmentThe build-up of Bertschi operationsin the UK reached an importantmilestone last month with theopening of its new tank containercentre at South Bank on Teesside.All the Swiss tank operator’s northof England activities are now administeredfrom the new site.The facility was primarily builtto service a new contract withShell covering the distribution byBertschi of Shell’s range of detergentproducts throughout the UKand Europe. Bertschi UK also hasvehicles based in Hull, Leeds andWidnes and employs 32 driversand four office staff in the UK.The new terminal, which isclose to Middlesbrough, featuresa 41 tonne gantry crane for themovement of tank containers toand from storage and a large truckINLAND/INTERMODAL/HAZCHEM NEWSSQAS programme on trackSQAS Rail is managed jointly by thechemical industry and the rail carriersreports are registered on the database,accessible to the members ofthe SQAS Service Group.To date, 190 employees of themember chemical companies havebeen registered as SQAS databasesystem users. More and morechemical companies are activelyusing this database to evaluate thesafety, environmental and qualityperformance of their transportcompanies. This is the startingpoint of a dialogue with their servicepartners to jointly agree onnecessary actions to further improveperformance and, as such,contribute to goals of ResponsibleCare in logistics.Two further modules, SQASRail and SQAS Cleaning Stations,are being reviewed and upgraded.The assessment questionnaireshave been redrafted and work isin progress on electronic systemsBertschi consolidates TeessideThe new Bertschi terminal on Teesside enables UK movements to be plannedlocally, rather than from Switzerlandand on introducing assessor trainingand accreditation for thesemodules, too.The SQAS Rail Scheme ismanaged jointly by the chemicalindustry and rail carriers. Pilot assessmentshave already been carriedout on eight railway companiesin six countries. An internationalworking group is activelypromoting the scheme’s expansion.In each country a user platformhas been created to drive andmanage an improvement programmebased on the assessmentfindings.For SQAS Cleaning Stations,chemical producers, LSPs andcleaning stations have launched ajoint action programme with atarget completion date of January1, 2004. Under the initiative, allEuropean cleaning stations arebeing urged to fulfil the minimumsafety, health and environmentalprotections requirements. Cleaningstations are encouraged toundertake an SQAS assessment,and transport companies to useonly SQAS-assessed cleaning stations.Furthermore, chemicalcompanies should only acceptcleaned tanks for loading whenaccompanied by a uniform cleaningdocument.In a related initiative, CEFICis in the process of developing anSQAS scheme for non-assetbasedlogistics companies that donot operate their own fleet ofequipment, but merely organisethe logistics services through subcontracting.and trailer parking area of 13 acres,which is capable of holding up to320 tank containers. Also in placeare an external truck wash, officesand a workshop.The separate dispatching departmentat the new terminal enablescontainer movements to andfrom the Middlesbrough and Hullfacilities to be planned in the UKrather from company headquartersin Dürrenäsch as in the past.Liquip radars on the screenSydney-based Liquip Sales Pty Ltdhas introduced the innovativeDiptronic radar-based level gaugefor road tankers. Diptronic representsa major breakthrough for theAustralian engineering companyas the patented measuring deviceis the first commercially viableapplication of radar technology inthe road tanker sector.Diptronic replaces mechanicaldipsticks and cumbersome meteringsystems traditionally fittedonboard tankers engaged in petroleumdelivery services. “Theradar device provides a level ofoperator safety and efficiency notpreviously possible with othertechnologies,” said Ivan Lawrie,Liquip’s marketing and exportmanager.In its simplest form, Liquip’sDiptronic uses a permanentlymounted electronic dipstick tosend fuel level information fromeach compartment to a centralprocessing unit (CPU) screenviewed at ground level. The CPUconverts the radar’s level informationinto usable volumes and communicateswith a ticket printer viaRS232 communication. “Volumeinformation is continuously andreadily available at the touch of abutton,” said Lawrie.The device has gained electricaland weights and measures approvalsin several countries andprovides a degree of accuracywhich exceeds all established requirementsfor custody transfer.Liquip has developed the technologyinto several distinct packagedsystems, one of which - DiptronicMLS - is designed to replace aconventional metering system.A major advantage of Diptronicis that it obviates the needfor staff to mount the tanker andthus the requirement for ladders,handrails and other tank top safetydevices. This, in turn, reduces vehicletare weight and increasespayloads. Other tare weight benefitsaccrue because Diptronicdoes away with the need forconventional metering systems.Liquip has configured Diptronicso that it can be easily retrofittedto existing tankers. Also,software upgrades can changeDiptronic from a simple measuringsystem to a integrated IT solutionfor fuel tracking.The first Australian Diptronicsystem was fitted to a HolmwoodHighgate 45,000 litre, five-compartmenttri-axle semi trailer newlybuilt for Cootes Tanker Services in2002. It has since made its internationaldebut onboard oil companyvehicles in France, the UK and Asia,while Liquip has plans to launch itinto several other countries acrossAsia and Europe soon.“Combined with our traditionalfluid handling equipment,Diptronic offers a complete Liquipsolution,” said Lawrie. “Whilestandard mechanical equipmentremains our bread and butter business,electronic fluid monitoringdevices are becoming a larger partof Liquip’s product range.”20March 2003

TANK CONTAINER/HAZCHEM NEWSTEC signs Chinese tank dealUK-based container engineering consultancyTEC (International) Ltd has signedan exclusive manufacturing deal withChinese tank builder JFC in Jiangsu Provinceto produce a new range of IMDGand US DOT-compliant tank containerdesigns for the international market.Best known for its high volume “boxwithin a box” Bitutainer and Lubetainertank designs for the transport and storageof bitumen and lube oils, TEC hasdeveloped and patented a new “no stress”tank frame design which, it says, is uniquein that it can accommodate any conventionalcylindrical tank of any size or pressure.According to TEC director RexMichau, JFC will use the new frame designto build a range of competitivelypricedhazardous and non-hazardoustanks which will be marketed by TECunder the Tectainer banner.JFC is no stranger to the tank markethaving built a wide range of units for theChinese domestic market, including specialiseddesigns for the carriage of diesel,propane, refrigerant gases, chlorine, yellowphosphorous, liquid ammonia andliquid CO 2. The Jiangsu factory has ASME‘U’ stamp approval and has the capacityto build 500-600 units/year.JFC will be the third Chinese manufacturerto enter the international tankcontainer market after China InternationalMarine Containers (CIMC) inNantong and Zhongshan Zhonghua TankContainer (ZZTC) in Guangdong.● Following successful dynamic testing atthe Tergnier test station in France earlierthis year (see WorldCargo News February2003, p14), TEC reports a rapid uptake forits new T-coded Bitutainer design, whichfully meets all ADR/RID requirements forthe transport of bitumen by road and railat temperatures up to 200degC as well asIMDG maritime transport requirements.To date, over 90 units have been ordered,customers including Exxon Mobil and giantFrench civil construction company, theColas Group, which has ordered 50 unitsfor use in its Northern US and Alaskanoperations.The new design, which features a cylindricaltank equipped with TEC’sunique heating system housed within aprotective 20ft Corten steel containerexterior, has a capacity of up to 24 tonnes,some 3 tonnes more than conventionalcylindrical bitumen tank designs. Theunits are manufactured by Singamas ContainerIndustry in Yixing, China.TEC director Rex Michau (centre) recentlyvisited the JFC tank factory to seal the dealWorldCargonewsUK tackleshazcargorule updateThe UK Department of Transport (DfT)and Health & Safety Executive (HSE) arecurrently embroiled in one of the mostcomplex rulemaking initiatives yet undertaken.The new, consolidated UK Carriageof Dangerous Goods by Road andRail Regulations will not only implementchanges introduced in both the 2001 and2003 editions of RID (European railtransport of dangerous goods regulations)and ADR (European road transport ofdangerous goods regulations) but alsocomplete implementation of the EuropeanUnion’s Transportable PressureEquipment Directive (TPED). In addition,the new rules will consolidate andreplace a large existing regime.Unfortunately, compiling the draftregulations, in the form of a ConsultationDocument (CD) is proving to be adifficult task. A number of complex legalissues continue to be raised which are takingtime to resolve. These include:● Ensuring that the obligations in RID/ADR are placed on the right people(many of these are described passively inRID/ADR).● Ensuring that the split in competentauthority functions between HSE andDfT is correct and complete (there areover 450 in ADR).● Meshing the existing regime on tanksand pressure receptacles with the requirementsof RID/ADR and the need tocomplete the implementation of TPED(there are a number of inconsistencies).● Checking that the requirements in thecurrent suite of 12 UK statutory instrumentsand supporting approved documentsare properly accounted for in theconsolidation.As a result of these difficulties, the CDis not likely to be submitted to the Healthand Safety Commission before May 2003,with publication in June for a three-monthconsultative period. Timings beyond thatare uncertain as much will depend on commentsreceived during the consultativeprocess and the extent to which the draftregulations may need to be revised.The new UK regulations are unlikelyto enter into force before March 1, 2004at the earliest. When the new, consolidatedUK dangerous goods transport regulationsdo enter into force, the great suite of existingrules, including the Carriage ofDangerous Goods (CDG), the Classification,Packaging & Labelling (CDG-CPL),the Dangerous Goods Safety Advisor(DGSA) and the Driver Training Regulations,will cease to exist.March 2003 21

WorldCargonewsCorTainer adds LiquiTainerCorTainer Inc of Houston,Texas, has launched a newflexitank design to complementits existing family of bulk containersfor the storage and shipmentof liquid products worldwide.Like the other containers,the new LiquiTainer is beingmarketed as a CorTainer/ITWproduct, following the finalisationof a private label agreementwith ITW last November.The LiquiTainer continuesCorTainer’s use of two thickwalledflexible concentric bladders,each made of foodgrade recyclablepolyethylene, in a totalthickness that more than doublesthe aggregate of the strongestof the many multilayer, thinwallflexitanks on the market.A 15 mil thick seamless innerlayer contains the liquidproduct, while a 35 mil outerlayer serves as protection andsecondary containment.CorTainer has added a thirdThe Institute of InternationalContainer Lessors (IICL) has releaseda new Technical Bulletin(IICL TB 002) entitled PreferredElectronic Data InterchangeStandards for the Container Industry,which covers external EDIstandards, message types and IICLpreferred CEDEX codes.The new bulletin has beenpublished as a reference guide forcurrent and potential users of EDIservices and is claimed to offer thefirst time user the ability to understand,in a condensed guide, theformatting of message types, aswell as the all-important use ofCEDEX codes in the creation ofcontainer repair estimates.IICL stresses that TB 002 doesnot introduce any new standards,nor does it supersede individualclient/supplier operational contractualrequirements It does,however, outline IICL members’preferred use of various existingstandards and conventions.Other useful sections in thebulletin include frequently askedquestions, a glossary of EDI terms,links to IICL members and informationon contacting the IICL forguidance and direction.TB 002 has been posted inlayer in the new LiquiTainer design- a woven polypropyleneouter - to ensure that the newflexitank provides a high level ofproduct security and durability.As reported the February2003 issue of WorldCargo News(p14), CorTainer recently relocatedits manufacturing operationsinto the Glesby Street facilitiesof ITW’s Insta-Bulk divisionin Houston. “Only the enlargedITW manufacturing presencemade this new design possible,”reports Charlie Nelson,CorTainer founder and CEO.“ITW makes the woven outerlayer and, without the economiesof scale that working with Insta-Bulk provides, we would havebeen unable to make this innovationeconomical. We have alsobeen able to achieve the necessaryproduction levels withoutsacrificing our metal fittings.”CorTainer uses foodgradebolted stainless steel fittings onits flexitanks, in contrast to heatweldedplastic fittings widelyused elsewhere in the industry.“Most leakage problems inflexitank operations have occurredaround such fittings,”adds Nelson. “Also, the priceof the new LiquiTainer makesit directly competitive withevery credible flexitank in theworld, without sacrificing thetraditional CorTainer flexitankadvantages of strengthand reliability.”The CorTainer/ITW familyof products includesflexitanks; collapsible and reusableintermediate bulk containers(IBCs) in the 200-1,000-litresize range; and temporarystorage tanks in sizes up to60,000 litres. Amongst theflexitank range are designs foruse in refrigerated containers,while a patented heater systemis also available for products thatmust be reheated before discharge.The new LiquiTainer iscompatible with both.IICL EDI standards releasedPDF format on the IICL website(www.iicl.org) and is available fordownload free of charge by depots,terminals, shipping lines, leasingcompanies and EDI vendors.The document will be updatedregularly to react to current issueswhich are continually raised byEDI users.Representatives from the IICLmember companies who supervisedthe preparation of TB 002were Tony Sowry of TextainerEquipment Management, RichardCornwall of Transamerica Leasingand Bill Brassington of GESeaCo.The end of an eraJindo Corp has finally decided tocall it a day at its original dryfreight container/chassis manufacturingplant in Inchon, Korea.A spokesman for Jindo confirmedthat outstanding containerorders had been transferred toJindo’s northern Chinese plant inDalian. The Inchon facility, whichhas been in continuous productionsince 1978, is currently completinga number of domestic ordersfor container chassis, but willclose permanently once these ordershave been completed.As previously reported inWorldCargo News, Jindo was rescuedfrom bankruptcy in November2001 when creditors accepteda business reorganisation plan andagreed to write off 90 per cent ofthe company’s estimated US$850mill debt. Though Jindo’s aluminiumreefer plant in Onyang,Korea, had been closed earlier thatyear, the reduction in overheadcost resulting from the debt adjustmentprogramme meant thatthe Inchon plant could continueto compete with Chinese box12,000 TEU shipGermanischer Lloyd (GL) engineershave been discussing a12,000 TEU container vessel witha Korean shipyard. According toDr Hans G Payer, a GL director,the design features a maximumdraft of 14.5m, which would allowaccess to the world’s majorcontainer ports. Twin propulsionis needed to enable the ship tooperate at the required servicespeed of 25 knots.GL presented a detailedstudy for a 9200 TEU vessel twoyears ago, in co-operation withCONTAINER INDUSTRY/SHIPPING NEWSbuilders for Seoul/Inchon deliveries.That is evidently no longerthe case.The closure of Inchon bringsto a close all marine containermanufacturing activity in Korea.Throughout the 1980s/early1990s, the country led the worldin container production, with outputpeaking at 376,451 TEU in1992. Since then, however, Korea’sposition has been progressivelyeroded by lower cost manufacturersin China.Ironically, Jindo was one of thedrivers of the inexorable rise ofthe Chinese container manufacturingindustry, having establishedthree dry freight box facilities inthe 1990s in Dalian, Shanghai andGuangzhou, with a combined annualcapacity of 185,000 TEU, almosthalf the size of Korea’s highestever output. These three plantsare unaffected by the latest move.A new line for the productionof container chassis for the USmarket is currently being installedat Jindo’s Shanghai plant and is dueto start operations in May this year.two Korean yards and interestwas expressed by several owners.It is not clear how manyrows across the “GL9200”would have but the most likelyresult is 17-wide, the same as thebiggest post-Panamax ships today.● In a claimed first for the shipbuildingindustry, DaewooShipbuilding & Marine Engineeringhas used a new a 3Dmodelling system, COSMOS(Concurrent Ship ModelingSystem), on a newbuilding.TendertouchShipping portal INTTRA has unveiledINTTRA-Tender, an oceantransportation procurement applicationthat uses a common businessprocess framework adoptedby global carriers and shippers.Available from June 2003,INTTRA-Tender standardisesand supports all phases of an oceantender, including initial tendercreation and request, carrier responses,shipper evaluation, shippercountering and shipper nomination.It is designed to replace amanual process that historically hasrequired the labour-intensivemanagement of numerous andnon-standard information exchangesbetween shippers and carriers.The new application was createdby the INTTRA-TenderCouncil, a group of carriers thathave worked over the past tenmonths with a number of globalshippers to design a standard solutionthat would have broad acceptanceacross the industry. Allcarriers can use INTTRA-Tenderat no charge. Any shipper whocommits to INTTRA services forbooking or shipping instructionscan also use INTTRA-Tender atno charge.“The INTTRA TenderCouncil has performed a valuableservice to the industry,” saidINTTRA CEO Ken Bloom. “Bydeveloping and endorsing a standardisedprocess for procurement,INTTRA can help its carriersimprove these business processesin addition to those processes towhich INTTRA has already madean important contribution.”22March 2003

SHIPPING NEWSFirst forMongoliaLandlocked Mongolia is negotiating withforeign partners to set up a joint stockcompany to own and operate what wouldbe the first ship ever to sail under theMongolian flag in recorded history. Thecountry is considering offers from severalforeign operators to assign an existingvessel to the Mongolian flag.According to the country’s InfrastructureMinistry, a proposal from SingaporebasedMaritime Chain is of particular interest.Preliminary estimates indicate thatrevenues could come to US$100,000within the first six month after closingthe deal and reach US$80 mill - a massiveamount in a Mongolian context -within 10 years.Mongolia has signed up to various internationalconventions to gain entitlementto have a national fleet. It obtainedright of access to 20 Russian ports andthe Chinese port of Tianjin in 1997.The sky’s the limitHamburg-based SkySails GmbH claimsthat its patented wind propulsion systemcan cut the energy cost of operating containerand multi-purpose vessels or passengerships by up to 50 per cent. A Skysails’ship would be equipped with a heliumfilledkite sail. The sail is guided with specialsoftware based on route managementand, it is claimed, is able to generate thesame power as a conventional ship’s engine.Tests at Hamburg’s ships model basincarried out by Dipl Ing Peter Schenzle aresaid to have been very successful.The patent has been registered worldwideand it will be developed in six differentconfigurations, which should all beready for production for newbuild or retrofitapplications within the next threeyears. The kite sail has an area of 5000 m 2and its top will be 100m above the vesseldeck. Its position can be changed relativeto the ship’s deck. The sail can be packedinto a 20ft container for transport.German shipping companies EgonOldendorff, and Rickmers-Linie have bothconducted trials with SkySails. “In additionto the economic advantages we canachieve a clear ecological advantage,” saidSkySails’ managing director Stephan Wrage.The SkySails system is claimed to be able tocut fuel costs by up to 50 per centWorldCargonewsSelf-servicefrom PONLP&O Nedlloyd is conducting an Internetbasedshipping trial in the trans-Tasmantrade between Australia and New Zealandwhich, if successful, may signal another nailin the coffin for shipping agents.Tagged “youship,” the service allowssmall shippers and freight forwarders toresearch, book, pay for and receive allnecessary documentation for cargo shipmentson-line. PONL has set up a dedicatedwebsite, www.youshipponl.com, whichit describes as “an exciting innovation thattakes the complexity out of shipping.”Once logged on, a customer can viewvessel rates and space availability, securespace at an advertised price, book and payonline and receive immediate online confirmationof waybill details plus writtenconfirmation by email.Upon registration, a shipper can workhis way through a simple process and organisemultiple users from the same company.Freight rates are inclusive of all surchargesand PONL also offers additionalservices such as arranging empty containerdelivery to shippers’ sites, insurance,customs clearance at shipment and receivaland destination land transport. Singlepayment for all services can be throughpersonal or company credit card or prearrangeddirect debit.All major ports in Australia and NewZealand are served for eastbound and westboundcargo on PONL’s comprehensivenetwork. For a specific enquiry, shipperscan select port pairs on the home page andview which vessels are available, or registerto receive regular schedules by email toassist forward planning. Only dry, non-hazardousFCL cargo is accepted and transhipmentor coastal boxes are excluded.Rates and charges for optional servicesare available to all transacting customers.There are no negotiated rates.PONL advises that sea freight rates mayvary at any time dependent on bookingdemand. “So even if you checked a vesseland rate yesterday, that same rate may notbe available when you return to make abooking,” the carrier says.For door-to-port shipments, anycharges that are not included in the prepaidfreight will be for the account of theconsignee, ie destination Port ServiceCharge (PSC) and documentation fee. Forshipments from New Zealand to Australia,there will also be Goods and Services Taxof 10 per cent on the destination PSC.Cancellation fees apply if a shipment orpart of a shipment is cancelled, and mustbe paid at the time of cancellation.Amendment fees apply to certain typesof changes such as transferring the totalbooking to another vessel, transferringone or more (but not all) of a number ofcontainers on a booking to another vesseland changing commercial details suchas consignee after the vessel sails.March 2003 23

PORT DEVELOPMENTWorldCargonewsSo long as it’s “green”The “on/off” New Century containerterminal at Berth 100, LosAngeles is “on” again following anegotiated settlement between theport, China Shipping and communityand environmental groups.The port must carry out a newEIR, to include the phase II andphase III proposals. It must alsocommit US$50 mill over the nextfive years to environmental mitigationprojects.Of this figure, US$10 mill willgo to a scheme to encourage ownersto replace, repower or retrofittheir heavy trucks to run oncleaner fuels. Caterpillar, for example,has developed a dual fuelengine that uses ultra-low sulphurdiesel fuel as a pilot ignition topower the principal CNG fuel.This allows CNG to comprisenearly 90 per cent of the truck’sfuel consumption and, says Caterpillar,provides significant reductionsin NOx and PM emissions.In addition, ships using the terminalmay also be required to use“alternative maritime power”while at berth. The port itself hasalready replaced nearly 35 per centof its total vehicle inventory withalternative fuel vehicles which utiliseCNG or LPG (light vehicles)or have dual fuel engines. It is alsotesting several battery-poweredcars and light utility vehicles.Skyline spoilationAnother US$20 mill of the settlementfund will go towards generalair quality mitigation whilethe same amount will be spent for“community aesthetic mitigation.”As previously reported in World-Cargo News, the “aspect aspect” isexpected to include feasibilitystudies covering the employmentof low-profile container cranes,including possible modificationsAir quality and noise control pose major problems forthe San Pedro Bay port authorities and theirtenants...oh, and don't spoil the view eitherto the four post-panamax ZPMCcranes already at the China Shippingterminal. However, this “wishlist” is highly problematic.Idle penaltiesIn another development, marineterminals at both Los Angeles andLong Beach are now workingunder a new law that took effectat the start of the year limiting thetime trucks can be allowed to waitat terminal gates. The law penalisesterminal operators with aUS$250 fine for every truck thathas to wait more than 30 minutesto get inside the gates.This has prompted the “GateHours Pilot Project” to survey regionalwarehouses and distributioncentres in order to identifycompanies that are able and willingto receive and deliver containersduring off-peak hours.The goal is to generate sufficienttruck trips in and out of thegreater Los Angeles harbour areathat will support second and thirdshift operations at marine terminals.In the past, some terminalshave remained open during offpeakhours in an effort to cutdown on congestion but there wasnot enough truck traffic to makethe programme financially feasible,primarily because warehousesand distribution centres were notopen in sufficient numbers to supportthe operation.More capacityAt Long Beach, extra truck gatecapacity has already been addedto the International TransportationService (ITS) facility on Pier J,used by K-Line, which opened areconfigured entrance with 10traffic lanes in February. The terminal’son-dock intermodal railyard has also been expanded andan additional 15,000ft of storagetrack has been laid.At Long Beach, Hanjin Shipping’snew terminal on Pier T isbeing completed through a recentlyawarded US$73.8 mill contractcovering the demolition ofthree former Navy piers, and thefilling in of a large graving dock,to create an additional 1324ft ofwharf. The work, scheduled forcompletion in October 2004, willgive Hanjin a terminal occupying375 acres and a wharf measuringmore than a mile long.Long Beach has also expandedthe California United Terminals(CUT) facility on Pier E, whichserves Hyundai, with the completionof a 30-acre landfill projectwhich brings the terminal to 105acres. Hanjin’s former 170-acreterminal at Pier A, now operatedby SSA Terminals (SSAT), is alsoto be expanded. Customers hereinclude MSC and Zim.The Port of Los Angeles may be making unrealistic assumptions about thefeasibility of low profile configuration for giant superpost-Panamax cranes, evenallowing for relatively light wind loads in southern California. The question ofwhether the ZPMC cranes at NCT (above aerial shot) can be converted isapparently still “open,” however. (For a discussion of the problems involved, seeWorldCargo News, January 2003, p1)New policyPointing the way to future actionat Long Beach, the port has soldall six post-Panamax cranes at PierA to SSAT. A second crane deal atthe port has seen Maersk Sealandsell two of its cranes on Pier J toITS, which has moved the unitsto the former Sea-Land terminalat Pier G. Long Beach currentlyowns about half of the 61 containercranes at its marine terminalsbut has indicated it would liketo get out of the crane ownershipbusiness. Last year it was able tosell one of its older units to thePort of Vancouver (Wa).The Port of Los Angeles ownsfar fewer cranes than Long Beachand in recent years has managedto sell off four of its older ones -two going to the Port of Olympia(Wa) and the other two to thePort of Ensenada in Mexico.It is now in the process of examiningcranes left behind byMatson Navigation, which hasshifted its operations to the formerZim terminal at Long Beach. FourMorgan-built RMGs - part of thefamous but ill-fated “Matsonmousetrap” - at the formerMatson facility, now operated bySan Pedro Bay terminal operators are now liable to a US$250 fine every timea truck has to wait more than 30 minutes at the in-gate, as legislators seek tocut air pollution from idling trucks. But if gate hours are to saty open longer,support is needed from warehouse operators and consolidation centresTacoma’s rising TideTideworks Technology of Seattlehas signed a contract to implementits Spinnaker planning software atthe Port of Tacoma’s South andNorth intermodal yards (NIY andSIY) in the second quarter of thisyear. Spinnaker has not been usedin a rail yard application before butTideworks’ managing directorMike Schwank says the softwareis “an ideal match for the needs ofthe port’s rail yards.“The flexibility of the softwareenables rail yard management toeasily handle and coordinate alltypes of intermodal container operationtransactions, from receivingand delivery of containers toinventory management, rail planning,yard planning and customizedreporting.”Spinnaker will replace a legacyrail yard management system butwill be interfaced with third partysoftware that includes an auto-mated equipment ID system. Theport’s director of rail operationsKelly Smith commented thatTideworks was selected becauseof its “proven experience in interfacingSpinnaker with thirdparty systems and service and supportthat will provide the portwith maximum systems uptimeand minimal IT overhead.”Tacoma is currently experiencingstrong growth with volumein January up 35 per cent onlast year. This is partly attributableto the backlog following last year’slabour dispute on the west coast,ºbut a third of the increase followsfrom Lloyd Triestino’s new directservice to China.The NIY, which serves Evergreenand K Line, set a new recordin February of 7312 intermodallifts, beating the 6825 recorded thefirst week after the port disputeended last October. ❏March 2003 25

WorldCargonewsPORT DEVELOPMENTThis ex-Matson crane from Honolulu is beinginstalled by Schnitzer at its Willamette River,Portland (Or) multi-purpose facilitySSAT, are being cut up for scrap and threeof four narrow gauge container cranes areto follow.Enter P&O Ports?Industry sources indicate that the portplans to retain one of the cranes, whichrides on 34ft gauge rails, and lay a thirdrail to support an additional three 50ftgauge cranes that will be barged acrossfrom other port facilities in order to createa relatively modern four-crane facilityfor another user.This is rumoured to be P&O Ports,although the port says that no tenancyagreement has yet been signed with anybody.P&O Ports is already established onthe NAWC range at Vancouver, BC followingits purchase of Casco and Centermfrom BCR Marine (WorldCargo News,January 2003, p9)In Oakland, Matson has left behindanother three elderly, narrow gauge containercranes at Berths 32-34 followingits move to the new SSAT-operated facilityat Berths 57-59. They are expectedAlready many port cars and other light vehiclesrun on LPG or CNGto be scrapped, at a cost of US$100,000per crane, as the site is redeveloped toprovide expansion space for the Ben ENutter Terminal (Evergreen/LloydTriestino) and Trapac (K-Line).Two of the former Matson berths areto be brought into alignment with theberths at Trapac by demolishing the existingapron face and building the berthsout 14ft to support 100ft gauge crane rails.Last year, Trapac acquired two 100ft gaugepost-Panamax ZPMC units and shippedtwo of its older cranes to the Matson terminalat Honolulu.In turn, Matson sold one of its olderHonolulu cranes to Schnitzer Group,which is having the unit installed at itsInternational Terminals multi-purposefacility on the Willamette River in Portland(Or) for container/bulk/breakbulkwork. The crane has an outreach of 110ftand a lifting capacity of 40 tonnes.Schnitzer has also indicated an interest inone of the cranes at Oakland. The Port ofEvergreen will source its own cranes and straddlecarriers for its new operation in Tacoma, withMarine terminal Corporation providing theterminal operation and labourPortland itself, meanwhile, is looking tobuy an eighth (and third post-Panamax)crane for its Terminal 6 (T-6) operation,but no acquisition date has been set.Portland is also having a number ofits older cranes scrapped but has run intoproblems because of the current low pricefor scrap metal in the US. Last year, theport contracted with a local salvage companyto dismantle two cranes and a shipunloader at its T-4 facility.A Whirley crane, used for both generalcargo and containers, was successfullyremoved but a 36 year-old Hitachi unit,once used by Matson, as well as a 42 yearoldDravo bulk unloader, remain on thedock in pieces.Receding StarsSeattle has had better luck in disposing ofseveral diesel-powered Starporter cranesformerly used by Matson at T-30, a facilitynow being converted into a combinationcargo/cruise ship complex. Twowere sold to the Port of Rio Haina, DominicanRepublic last year. The third unitremains on site and is up for sale.Three new ZPMC cranes are slatedfor delivery to the Hanjin facility at T-46,which is being expanded from 70 acresto 88 acres under a US$74 mill modernisationprogramme. The terminal alreadyhas six cranes on site and at least two ofthe older cranes will have to go. Accordingto port spokesman Mick Shultz, theywill most probably be two Hitachi unitsthat have a limited outreach of 115ft.The Port of Tacoma has also managedto sell off several older cranes, includingtwo IHI models, one from T-7 and theother from T-3/4, both shipped to Jurongin February aboard a Jumbo heavylift ship.Still at the port is an old Peiner unit, whichis listed as “in storage” and due to be upgraded.One Sumitomo crane is currentlybeing moved from T-3/4 to T-7 to giveK-Line a total of four cranes.Evergreen will purchase the cranes andstraddle carriers for its new terminal inTacoma (WorldCargo News, January 2003,p1). The ILWU will furnish the labourwho will be employed by Marine TerminalsCorp. There are no clues as to whowill take over Evergreen’s existing terminal,where cranes and straddle carriers areowned and operated by the port. ❏In the VansWhile the Port of Vancouver, BC hasannounced a major expansion programme(WorldCargo News, September2002, pp19-21), its smaller USnamesake in Washington state hascompleted the second phase of its T-2redevelopment programme.This includes 800ft of new dockand piling improvements at berths 1and 2. The port is now moving to redevelopT-3, refurbishing the existing60-acre facility, adding a further 10acres of open storage area and modernisingthe storm drainage system.The project is costed at US$7.3 mill.Another port in the Vancouver, BCarea is also expanding. North FraserPort Authority, located on the FraserRiver, is developing a C$30 mill bargeterminal near the Arthur Laing Bridge.The 44.5-acre facility is to be builton the site of a demolished sawmilland will offer docking and ramp spacefor intermodal-type barge operationsas well as two 100,000 ft 2 storage sheds.The complex is being designed anddeveloped by a wholly-owned portauthority subsidiary, North Fraser TerminalsInc, and will make use of mobilecontainer handling equipment stillto be acquired. ❏26March 2003

PORT DEVELOPMENTTread the hard road to prosperityThe Brazilian economy, SouthAmerica’s largest, has recoveredsomewhat since the nervous dayslast October when Luiz IgnacioLula da Silva (“Lula”) was electednational president. To steady theship Lula toned down his populistrhetoric and appointed financialheavyweights to run the centralbank and Finance Ministry.Now everyone is waiting tosee how he plans to tackle thegrowing public debt and punitiveinterest rates. Executives at thecountry’s ports want him promotefree trade to bring more cargo, andpush ahead with modernisation ofports and related infrastructure.Former president FernandoHenrique Cardoso had started totackle Brazil’s long protectionisttradition but so far the messagefrom Lula has been mixed. He iswary of a US-led plan to transformthe whole of the Americasinto a free trade zone but has calledfor more co-operation in theMercosur custom union andstronger trade ties with China,India, Russia, South Africa andMexico. More trade is crucial, saysinvestment analyst Alejandro Perézat the infrastructure department ofthe International Finance Corporation(IFC) if port operators areto get a return on their investments.Up northSeveral ports still have privatisationschemes in the pipeline, suchas Recife in Pernambuco, wherea number of lease projects arecoming up this year. The port authority(APR) is working out thebidding rules, but its presidentLeão Diniz de Souza Leão Avilastates that they will be open tolocal and international companies.APR plans to lease its pet coketerminal and various warehouses,and offload responsibility for portequipment to one or more privatecompanies. Avila believes thatinternational companies are mostlikely to show most interest in thepet coke and warehousing contracts.APR also wants to lease thecontainer terminal but, says Avila,tendering is unlikely this year.APR is an arm of thePernambuco state government.Although there is a trend in Brazilto transfer federal or stateownedports to municipal administration,Avila believes state administrationhas been the best solutionfor Recife.Recife coexists with Suape asPernambuco’s major ports andstate administration has facilitatedcommunication and cooperationbetween them which, he argues,would have been more difficultunder municipal administration.The transfer of ports in the nameof decentralisation to municipalitiescan be a good thing but, hebelieves, it should be handled ona case-by-case basis because of thediverse characteristics of Brazil.The Suape port authority isalso trying to accelerate its privatisationprogramme and Peréz believesthe IFC will support this.The World Bank’s private sectorarm could provide the port withlong-term financing as it believesthat privatisation would help reduceoverall transportation costsand increase competitiveness ofexports in the north east of Brazil.The immediate priority is thegrain terminal, in which the successfulbidder(s) will be expectedto invest up to US$40 mill.Pear-shapedHowever, the results of privatisationso far in Suape are hardlyencouraging. As well as labour disputesand liner defections overhigh prices (see page 11), TeconSuape SA (TSSA) is involved in adispute with the port authorityover lease payments.This follows a new ruling(Resolution 55) from “Antaq” (thenational agency for waterbornetransport) on port monopolies.According to port presidentAlexandre Albuquerque, the authorityis obliged to renegotiatesome aspects of TSSA’s concession.But it is not all doom andgloom. Brazilian ports, says SidneyRezende, transport specialist atUN-ECLAC in Santiago deChile, have come a long way interms of productivity and efficiencysince the port reform lawof 1993 which set the scene forprivatisation and modernisation.Yet both Rezende and local analystJosef Barat say that the portshave some way to go to reducethe infamous Custo Brasil whichcontinues to hamper foreign trade.They make the point that labourcosts in many ports are stilltoo high. The port unions arepowerful and still exercise great influence,in terms of the size ofwork gangs and salaries.Rezende and Barat also agreethat in order to reduce costs theBrazilian authorities should lookbeyond the berths towards moreintegrated transport solutions andpromote intermodal rail and inlandwaterway as effective meansof distributing containers inland.While Tecon Suape is struggling,there may be light at the endof the tunnel for Tecon Sepetiba,which is jointly owned by steelgroup CSN and mining, ports andlogistics group CVRD. So far itsmajor regular call was fromMaersk Sealand’s NCX service toVenezuela and the Caribbean,which was aborted last year afteran 18-month experiment andcargo fell to almost zero.Sudden surgeBut now Hamburg Süd, CMA-CGM and Maersk Sealand havedecided to use the facility. MaerskSealand’s newly introduced “L”class vessels cannot berth in Riode Janeiro, because of insufficientdraught. Hamburg Süd has alsodeclared that its cabotage arm,Aliança, will call Sepetiba insteadof Rio de Janeiro.Gefco has opened an office inthe port and persuaded bothHamburg Süd and MaerskSealand to start calling there onits north European services. Apartfrom controlling Peugeot Citröenautomotive parts business, Gefcois the logistics supplier of choicefor Ambev, which is one of Brazil’sbiggest beer and soft drinkssuppliers, and Total Elf.Although Sepetiba is only 80kms from the city centre, the “RioMafia” of customs officers,despachantes (facilitators), variousshipping agencies, etc have notbeen at all keen to use up severalhours of their days travelling outto this “remote” port. In any casethe two key operators in Rio, LibraTerminais (Tecon One) andMultiterminais (Multi-Rio), carrya lot of clout with shippers.ICD supportBut the new ICD at Cacapava, inthe Vale do Paraíba and midwaybetween Rio de Janeiro and SãoPaulo, is a boost for TeconSepetiba, long touted as a futurehub port for Brazil, with its amplespace (40-ha) and up to 16mdraught alongside the 540m quay.The ICD has good train links withSão Paulo, Santos, Sepetiba andRio de Janeiro, and Hamburg Südis keen to see cargo consolidatedthere and then choose which portis best suited for the cargo.“Our services definitely givethe ICD hub potential,” remarksDavino Augusto PontualWorldCargonewsMore needs to be done to developintermodal transportMachado, marketing co-ordinatorfor MRS Logística. A daily serviceto Sepetiba seems the logicalstep for most northbound cargo,reasons Machado, quoting oneshipping line’s logistics manager astelling him that Sepetiba departuressave 24-36 hours in transittime to the US and Europe.Installed capacity at TeconSepetiba, equipped with twosuperpost-Panamax Impsa cranesis claimed, somewhat optimistically,by its terminal directorHumberto Ramos de Freitas to be400,000 TEU/year. ❏Ceará brings up dozenWith the commissioning of twoHMK 300Es last November inPecem (Ceará), Gottwald PortTechnology now has 12 harbourmobile cranes in Brazil - sevenHMK 300Es and five HMK280Es (the 300’s forerunner).The Pecem cranes, operated byCeará Terminal Operations(CTO), have a 5m long tower extensionto provide a higher cabviewing position as the duty requirementincludes workingMaersk Sealand’s post-Panamaxvessels. “We are ideally preparedfor future requirements,” saidCTO’s general manager PatricioJunior. Both Maersk Sealand andCMA-CGM are targeting reeferexports at Pecem.According to WorldCargo News’survey records (January 2003,pp31-32), seven harbour mobilecranes were furnished to Brazilianoperators last year, includingthese two from Gottwald. TheGerman company claims that itwas awarded contracts for a totalof five HMK 300Es in Brazil lastyear. Regional sales managerRainer Büssing is confident aboutmarket prospects but says that interestedterminals are currently ina stand-by mode until the politicaland economic situation consolidates.Despite the volatility inBrazil “there are still projects inthe pipeline,” he notes.Büssing takes the view that interms of cranes and technology severalBrazilian container ports canhold their own when making internationalcomparison. The importanceof container terminals canonly grow as the rate of containerisationis still very dynamic.Like many suppliers, Gottwaldsees continuing privatisation as akey driver of sales, since concessionwinners have to upgrade formergovernment-run facilities whichare often run down. ❏Two Gottwald HMK 300E cranes were recently commissioned in PecemMarch 2003 27

WorldCargonewsPORT DEVELOPMENTChile blows hot and coldPeace has broken out in SanAntonio, Chile’s top containerport, after two years of soured relationsbetween the port authority(EPSA) and San Antonio TerminalInternacional (STI).STI is owned 51 per cent byStevedoring Services of Americathrough a local holding companyand 40 per cent by SAAM. TheWorld Bank’s private sector arm,the International Finance Corporation(IFC), holds the balance.Throughput last year of 5.27 mt(4.45 mt in 2001) included 189,000containers (168,000 in 2001).The port as a whole (STI,TEM, Terquím and Vopak tankfarm) handled a record 9.27 mtlast year (+ 5 per cent) and is clearleader in Chile’s Vth Region(serving Santiago de Chile), witha 57 per cent cargo share, comparedwith Valparaíso’s 28 per centand Puerto Ventanas’ 15 per cent.The source of the dispute wasthe state-owned TerminalEspigón Multioperador (TEM).As previously reported in28There is no consistent message on privatisation inChilean ports - some people want more and others lessWorldCargo News, STI claimed thatEPSA was subsidising the privatestevedores at TEM. In the end, forsome reason EPSA backed down,making it unnecessary to go to arbitration.“There is no perfectworld but today the waters arecalm,” says Eric Petri, executive ofthe SEP holding company forstate-owned port terminals. Thecommercial managers for bothEPSA and STI, Ricardo Schelchterand Danilo Cancino, also say thatthe issues have been resolved andthat the relationship is now good.Shoot the messengerOne would not have thought thisfrom a visit to Chile last Novemberby US trade representativeHarry Caldwell, who sparked controversyafter he was quoted by localfinancial daily Estrategía as callingfor privatisation of TEM toeliminate potential unfair competition(WorldCargo News, January2003, p6). According toSchelchter, Caldwell (who doesnot speak Spanish) was “misquoted...andthis was later confirmedby Caldwell personally.”STI and TEM compete in thesense that, subject to contract, avessel can call at either facility ifthere is berthing space. But if twoships arrive at the same time, thequestion of priority arises. Underthe settlement, only one of thetwo berths at TEM which canhandle containerships has “priority”status, making it more likelythat the ship will call at STI. Anotherpoint is that “EPSA is nowobliged to include any money itputs into TEM within the tariffsit charges the stevedores there.”Bird’s eye viewThe view of Dr Jan Hoffmann, internationaltransport analyst atUN-ECLAC in Santiago, is thatTEM and other Chilean port terminalsstill under state ownershipshould in the long-term be privatisedbecause otherwise therewill always be a potential sourceof conflicts.Ultimately the governmentdoes aim to lease all state-ownedport terminals, says Petri. However,the current “dual” system willcontinue until there is a level ofcargo traffic that justifies handingeverything to the private sector.He could well have in mindthe controversy in Valparaísowhere, at the beginning of thismonth, the government wasforced to call off the port authority(EPV)’s planned tender for theEspigón terminal. As previouslyreported in WorldCargo News, theport’s existing concessionaire, TerminalPacífico Sur (TPS), the70:30 Von Appen (Ultramar) andPort authorities are being pulled in different directions by their tenants/lesseesHHLA Hamburg joint venture,has opposed the EPV’s plans.The Germans threatened tosue the government if the tenderwent ahead. The EPV is caught“between a rock and a hard place.”Agunsa, which has been pushinghard for the tender, has said it willtake legal action to seek to revertthe decision to postpone it.The market is tight andValparaíso has been losing marketshare to San Antonio in any case.Last July, for example, MSC quitTPS for STI. The TEM settlementin San Antonio has set a precedentand Agunsa can no longer get favourableterms working a publicberth in that port or in Valparaíso.Another oneIn the north, another controversialprivatisation has gone ahead,with Antofagasta port authority(EPA) confirming that some facilitieshave been leased toConsorcio Antofagasta TerminalInternacional SA (CATI). As previouslyreported (WorldCargoNews, January 2003, p6), this is ajoint venture of SAAM andInmobiliaria Marítima PortuariaSA. It won the tender in Januaryas sole bidder and its lease runsfor 20 years with an 10-year optionextension. The deal may leadCPM to scale back at Mejillones.In the extreme south, there areno short-term plans for privatisationat the Port of Punta Arenas,even though port officials are optimisticabout prospects forgrowth. Last year a Spanish delegationfrom Valencia showed interestin investing in the port.Nibaldo Astete, chimericalmanager for the port authority(EPPA), explains that the three terminalshave different specialisms.Arturo Prat terminal is for cruiseships; José de los Santos Mardonesterminal handles only cargo;Transbordadores de PuertoNatales is dual purpose.Cruising aheadThe cruise business has boomedin recent years and cargo is expectedto grow because of the region’ssalmon and methanol industries.EPPA will invest somePesos260 mill this year to remodeland improve the Arturo Prat terminalin time for the 2003-4cruise season. Astete adds that the70,000-plus cruise passengersPunta Arenas receives yearly spendan average of US$55-65/daywhen they trek around the cityand its surroundings.EPPA will invest Pesos140 millat the Puerto Natales terminal thisyear to prepare for a significant increasein salmon-related cargotraffic over the next three years,focused on berth improvements toaccommodate bigger vessels andbetter warehousing and reeferstorage facilities. Finally, Mardoneswill receive a Pesos60 mill investment,also in part to improvereefer storage capacity.There is another interestingproject on the table. Enap is studyingthe possibility of exportingproducts derived from its methanolplant in the region. It mayteam up with EPPA to constructa new berth to handle exports.No final decision has beenmade and even if there is a greenlight for the project, any new terminalwould be at least two yearsaway because of different studiesthat have to be made before construction.Petri considers that interestamong private investors toparticipate in any future tender inPunta Arenas will in part hinge onthe project with Enap.Better outlookIn San Antonio, EPSA and STI areconfident that the port is oncourse for another record year,due to a better-performingeconomy and increased foreigntrade on the back of free tradeagreements signed last year withthe USA and the EU. This year afree trade agreement is expectedto be hammered out with SouthKorea. The Santiago Chamber ofCommerce has forecast that theChilean economy will grow 3.3per cent this year with exports andimports increasing by eight percent and five per cent respectively.EPSA’s long-term goal is tocreate a 30 mta port. Plans are focusedon a 100-ha area, with theaim of increasing the number ofberths from nine to 23 and ensuringadequate backlands. Thereis no definite time horizon for this.STI says that it has so far investedUS$42 mill in its concession,including civil works, handlingequipment, computer systemsand training. It plans to investanother US$13 mill extendingthe berth another 300m toaround 1000m.The investment will be undertaken“when the economic factorsimprove sufficiently to recoverit.” Throughput and profitabilityhave not reached the levels STIbudgeted when it won the tenderin 2000.Cancino claims that STI is themost efficient container terminalon the South American west coastas its two gantry cranes handle onaverage 45 containers/ship hour,which compares well with internationalbenchmarks.Containers are STI’s mainbusiness and most of the contractsit has with the lines are long-termones, so it will continue to focuson boosting its share of bulk andbreakbulk traffic this year. ❏On the moveAfter six years in post, Dr JanHoffmann is moving fromUN-ECLAC in Santiago deChile to UNCTAD in Geneva,where he will continueworking in the area of internationaltransport, ports andshipping.Hoffman’s achievements inChile include the web-basedMaritime Profile of LatinAmerica and the Caribbeanand the BTI internationaltransport database.He wrote regular e-mailbulletins about maritime transportin the LAC macro-regionand published research oncoastal shipping, hub ports, theprocess of concentration inliner shipping, port privatisationand the determinants ofinternational transport costs. ❏March 2003

CARGO HANDLINGWorldCargonewsSeoho steers by satelliteSeoho Electric of Korea is offering a GPSbasedauto steering system for RTGs. Itpreviously offered auto steering usingCCD cameras to capture deviation froma painted line, but in 2001 began developinga GPS system using real-time kinematic(RTK) GPS technology.RTK (or carrier phase) technologyachieves a higher degree of accuracy than“standard” DGPS and calculates positionin real-time but is more complicated and,therefore, more expensive. It is, however,becoming more commonplace. Recentexamples include a container position systemdeveloped by Sanderson Logistics inAustralia for Patrick Stevedores’ EastSwanson and Port Botany terminals,ZPMC’s RTG auto steering system andRahco International’s steering system forlarge stackers at mining sites.The Seoho system consists of dual frequencyGPS receivers and antennae, RTKprocessors and a 2.4 GHz wireless LAN.One GPS unit and an RTK processor arefitted at the base station and each RTGhas two GPS units and a processor. Forthe system tested at Korea InternationalTerminal in Kwangyang in May last year,Seoho fitted a dual frequency GPS receiverproduced by NavCom of Californiaand a frequency hopping spread spectrum(FHSS) wireless LAN.Hop itSeoho’s choice of FHSS is interestingsince direct sequencing (DSSS) is perhapsmore common in port applications as itis generally reckoned to be less subject tosignal dissipation (multipath “fading”).Seoho director Seung-Nam Kim says thatthe company has supplied spread spectrumremote wireless LANs since 1997and, to date, has found FHSS to be morereliable, possibly because of interferenceproblems at specific sites.Kim is not entirely happy with FHSS,however and says “we are looking for astable wireless LAN system but there isno definite answer yet.” A DSSS does allowhigher speed but, says Kim, createsanother problem in licensing a frequencybetween 3.5 and 5.5 GHz.Seoho considers that effective autosteering requires accuracy within theImpsa projectAs briefly reported in last month’sWorldCargo News (p1), Impsa PortSystems is entering the RTG marketin its own right, in the shape ofa Letter of Intent from the Port ofBintulu in Malaysia for two machines.This is Impsa’s first ventureinto rubber-tyred port cranage,leaving aside a project being executedwith Kalmar for one RTG forTecon Paranaguá in Brazil.According to Impsa, despitethe fact that there is even morecompetition in the RTG marketthan in the ship-to-shore containercrane sector, it recogniseda need to be able to offer bothproduct lines as many customerswant to source quay and yardcranes from the same supplier inthe interest of compatibility.Impsa adds that the RTG projecthas been carried out completely“in house” by its own engineeringand R & D department.The RTGs for Bintulu will havea 6 + 1 span and stack 1 over 4 x9ft 6in high (not 1 over 5 as statedlast month), while SWL underspreader is 40 tonnes. They will befitted with Impsa’s own full ac drivecontrols incorporating Siemenscomponents.Rated load and empty hoistspeeds are 20 m/min and 40 m/min, trolley speed is 70 m/min andlong travel speed is also 70 m/min.The cranes will be fitted with electronicanti-sway and DGPS for autosteering and position determination.The delivery term committedwith Bintulu for the supply of thetwo RTGs is 14 months. ❏Seven Hyundai-Paceco Transtainers at Kwangyang have been fitted with Seoho’s GPS-basedauto steering system. A GPS-based PDS is being developed for a fully-automated RMGrange of ± 15mm 95 per cent of the timeand ± 20mm 99 per cent of the time. Tokeep the RTG on the desired path atmaximum travel speed the system mustbe capable of measuring deviation withan update interval of less than 150 m/s.Measuring and processing of informationis performed at a 10Hz data rate usingreal-time GPS data processing softwaredeveloped at the University of NewBrunswick (UNB) in Fredericton,Canada. This software features UNB’sOptimal Method for Estimating GPSAmbiguities (OMEGA), for resolving ambiguitiesin position information.While RTK systems are more accuratethan standard DGPS, they still requirean uninterrupted line of vision betweenthe receiver and, usually, six satellites. Thenumber of satellites that are ‘visible’ dependson the elevation between the receiverand satellite; if the angle is too lowatmospheric conditions can degrade thesignal and differences in atmospheric pressurecan affect the position calculation.Ion filingsMost GPS receivers have an “elevationmask” of 10 to 15 deg, below which thesignal from satellites is excluded whencalculating position. One benefit of RTKGPS is that it uses a more complex ionospheremodel that allows for differencesin the ionosphere at the horizon.To compensate for incomplete GPSinformation most auto-steering systemsuse information from a variety of secondarysensors (accelerometers, gyroscopes,wheel encoders, etc) to maintain performancewhen satellite ‘vision’ is obstructedor there is multi-path propagation of theGPS signal. Kim claims that the performanceof the Seoho RTK algorithm andthe UNB software is such that systemaccuracy can be maintained when thenumber of satellites drops to five “evenwith zero degree elevation mask.” Whenonly four satellites are available Seohoincorporates information from wheelspeed and the known dimensions of theRTG into the algorithm.Seoho claims that system availabilityexceeded 99.9 per cent even when thesatellite availability was sub-optimal (ieclear vision to less than six satellites). Performance-wise,the RTG stayed within2cm of a virtual track 99 per cent of thetime and 1.5cm 95 per cent of the time.Since the testing was completed Seohohas fitted the system to seven Hyundai-Paceco Transtainers at Kwangyang.Latitude effectsOne issue surrounding GPS-based automationsystems is how well they performat sites where latitude or site conditionsare unfavourable. Kim says Navcom Engineersfound the availability of GPS satellitesat Kwangyang was reasonably good,but if the elevation mask was set to 10deg, only five satellites were available atcertain times during the day. Other suppliershave claimed that these periods of‘unavailability’ are never longer than 1-2minutes and, therefore, do not cause aproblem but Kim says they can last for10-30 minutes.Furthermore, as satellites orbit theearth 4 mins faster than a 24 hour day,the unavailability period shifts by twohours a month. Seoho considers that afeasibility test is required before it can reallybe determined whether a particularsite is suitable for a GPS system.Seoho is also developing the positioningsystem for the automated RMG -termed automatic transfer crane (ATC) -that Hyundai is building for the phase IIIautomated project at Kwangyang.For long travel and trolley travel Seohois using a GPS system together with absoluteencoders. Kim explains: “the GPSsystem is used not only for the positioningbut also for the girder deflection toget accurate height of the spreader fromthe girder for automatic operation.” Anabsolute encoder is also fitted for thespreader height, while laser sensors areused to position the spreader.As previously reported, Hyundai hasbuilt one AGV for this project but developmentof the RMG was delayed andcommissioning is now scheduled for Maythis year; a second AGV should be builtby June. Once testing is complete theautomation systems will be removed fromthe ATC, which has been purchased bythe Korea Container Terminal Authorityfor Kwangyang, phase II. ❏Greener RTGZPMC is confident that the super capacitorwill prove a viable way topower RTGs and AGVs, deputy generalmanager Liu Qi Zhong told theTOC conference in Hong Kong lastmonth. ZPMC has fitted one RTGin Shanghai with 400 x 100,000 faradsuper capacitors as part of a test.Liu says that the super capacitorsprovide a starting current of around400A and, therefore, only 200A needbe generated from the diesel engine.This means that the size of the dieselengine for a typical 40 tonne SWLRTG-8 can be reduced from 400 kWto 150 kW.ZPMC’s next plan is to experimentwith super capacitors on AGVs.As the AGV has no hoist to produceenergy during lowering, less of the requiredpower can be provided througha super capacitor. According to Liu,an AGV requires a peak power of 180kW, of which 60 kW could be providedthrough a super capacitor.Using super capacitors to powerRTGs, cranes and other port equipmentis unlikely to be any cheaperthan current diesel or electric methodsand the capacitors themselves willadd complexity and increase maintenancerequirements. However, forports under pressure to reduce emissionsand power requirements, supercapacitors may be an attractive option.The Port of Oslo, for example, hadto invest in electric-powered RTGsto satisfy environmental concerns. Liusays a particular advantage of the testRTG is the elimination of the smokebillow at the beginning of hoisting operations,one of the most visual displaysof pollution. ❏Super capacitors wil help ports “clean uptheir act,” believes ZPMCMarch 2003 29

WorldCargonewsCARGO HANDLINGTechnology seen as a foil to falling RTG pricesWith the CEO of oneleading RTG maker,Christer Granskog ofKalmar Industries, remarking thatprices for RTGs have fallen by 20per cent since 1998, now is not atime for the faint-hearted.The RTG market appears tobe moving in two directions. Onthe one hand the “sell” is basedprimarily on low price and, on theother hand, the product commandsa premium becausedowntimes and running costs canbe shown to be lower. It is difficultto make hard and fast comparisons,however. Different workingpractices, union agreements,computerised yard managementsystems, safety requirements andeven areas such as gate control anddocumentation processing can allaffect RTG productivity, beyondthe control of the OEM.Rival campsNevertheless the two “camps” appearto be equally strong which,if one compares the sector withthe state of the ship-to-shore cranemarket, is no mean achievementfor the “top drawer” suppliers.They must have a fairly persuasivecase. Otherwise, what operatorwould acquire 3-4 RTGswhen the same money could buy4-5 from somebody else. Theirselling point has to be superioruptimes and lower overall runningcosts; their problem is that downtimeis often not factored intoRTG acquisition costs.To quote Granskog again,price is one important componentof purchase decisions but it is timeto shift the focus to value creationthrough optimal handling solutions,efficient maintenance setups,adequate financial solutionsand new, useful product features.By implication, these should notincrease downtime by becomingunreliable over time.Kalmar’s SmartRail auto-steeringand position determinationsystem has been an undoubtedboost to its production of RTGsand, although an option, is specifiedon most of its output. Its fitmenton the four new RTGs recentlydelivered to the Port ofOslo is virtually mandatory asthese machines, uniquely, are suppliedwith power through aStemmann cable reeling systemlocated in a Panzerbelt trench.Electric bluesThe Port of Oslo has undertakena temporary rehousing scheme forcontainer storage centred on aquay area some 500m to the southof the Ormsund terminal whichis currently served by two Konegantry cranes, the latest of whichwas delivered last year. As previouslyreported, the landside handlingis switching to a unique allelectric,widespan (9 + 1) RTGdesign (for last reports, see World-Cargo News, May 2002, p44 andSeptember 2002, p25).The deal, eventually awardedto Kalmar, was the outcome of a30 month study by the port which,due to the close proximity of residentialareas to the container yardand for environmental reasons,specified a plug-in electric feed.Electric drive RMGs wereconsidered but the additional civilengineering costs were deemedtoo high, particularly if, as seemslikely, the RTGs were to be relocatedto the new Sjursøya terminalafter a few years. Also, the noiseof the RMGs moving at highspeed over the rails would havebeen the subject of objection.Overall width of the RTGs is34.5m, while wheel span andclearance between legs are 31mand 29.8m respectively. Overallheight, to the top of the maintenancecrane, is 23.15m, whileclearance heights under portalbeam and spreader are 17.6m and15.2m respectively (1 over 5).Thus, not only are these RTGsbelieved to be the widest yet built,they are also the first pure electricdrive RTGs. No diesel gen set isfitted and instead the full ac driveis fed by a hv cable.If the RTGs are required tomove off the stack, the wheels canbe turned through 90 deg in thenormal manner and the unittowed by 4x4 ro-ro tractors to itsnew location. Special attention hasbeen paid to the bogie design,which is essentially the standardKalmar single wheel configuration,to support the all-up unladenweight of 144 tonnes.SmartRail auto steering is fitted,which is considered essentialas the RTG has to long travel veryprecisely in order to follow thecable duct. Taking full account ofwinter conditions in Oslo, aPanzerbelt system was specified toprotect the cable duct and the cablereel is mounted on the outerside of the RTG frame.Why GPS?Some industry observers, however,question the incorporation of aGPS-based auto steering system.They argue that a simpler and possiblymore accurate guidance systemcould have been incorporatedusing the actual cable trench. Thiscould perhaps have been based onan optical guidance system, althoughthere would always be uncertaintiesabout operations insnowy conditions.The problems could have beenovercome using a clearance androtating brush device or even usinga magnetic or wire guidancetrack in the trench which couldbe read from the bogie stationsprior to the cable being laid in thetrench, so there would be no electricalinterference.However, Kalmar claims thatits GPS-based SmartRail is aproven, bolt-on solution that canaccommodate the same levels ofaccuracy and can be fully supportedby its technicians on site,so there is no need to source anothersystem provider.Hidden advantagesThe price of these RTGs, whichwill replace the current masttruck/reach stacker yard system,has not been disclosed, but is obviouslymore than a conventionalRTG. The port, however, was insistenton electric power, mainlyto overcome local residents’ objectionsto noise levels.But there could be cost savingsover conventional RTGs inthat there is no maintenance requirementfor a diesel engine andalternator and there is no need torefuel the unit at regular intervals.While a full electric design willnot become an industry standard,there are undoubtedly applicationswhere it might provide a bettersolution than a diesel-get setpower supply.Recent entryA relative “newcomer” to theRTG sector, Liebherr ContainerCranes has recorded some notablesuccesses to date, even thoughthe company states that it cannotcompete on price with OEMssuch as ZPMC or even Kalmar. Ithas tended to pitch its marketingto its existing ship-to-shore cranecustomer base on the basis that thedesign and construction of itsRTGs offers the same quality asits quayside cranes and a high degreeof commonality.Certainly in the ship-to-shorecrane sector, despite relatively highprices, Liebherr has retained acomparatively healthy position. (Isthis in spite or because of notoutsourcing any fabrication orerection work?) While Liebherrclaims, naturally, that its approachresults in a better product, it certainlydemands a heftier price. Justifyingthis at a time when stevedoresare under intense pressureto contain or even reduce charges,can be very difficult.Winning overLiebherr recently won an RTGorder from Dublin Ferry Terminals(DFT). This is an interestingcase since when DFT originallyconverted to RTGs it opted forKalmar machines equipped withSmartrail, ordering three in 1999.Although it was thought thatthe selection of Liebherr this timewas influenced by the prospect ofIrish government grants under itsnational development plan aimedat assisting transport and port infrastructureprojects, it is understoodthat no funding for DFT’supgrade has been made available.As the Kalmar RTGs areequipped with SmartRail autosteering,DFT specified a similarpackage from Liebherr. Liebherrhas previously fitted SmartRail toRTGs in Jebel Ali, at the requestof Dubai Port Authority, but inthis case it has opted to developits own system in conjunctionwith Götting, based on a DGPSpositioning system cross-referencedwith onboard encoders.Swaying argumentsLiebherr claims that the main advantageof its RTG design lies inthe increased productivity that canbe achieved through its uniquereeving system. The system as suchis not new (it has been employedon heavy shipyard cranes for manyyears) but its application on anRTG is a departure.Essentially, the hoist ropes areangled out to widely spacedsheaves on the trolley instead ofhaving a vertical configuration, tocreate a stable lifting geometry.Echoing Konecranes, Liebherrclaims that it is not in fact an “antisway” or sway dampening systemacting on sway that has alreadyoccurred, but one which preventsway from arising in the first place.The spreader is suspended byeight ropes clamped to the singlehoist drum, reeved through thetrolley pulleys and down in four“V” formations to their connectionpoints directly on thespreader. This configuration is essentiallya single fall reeving sys-There is still scope for high price/high availability designs in the RTG marketsector, even though all prices tend to fall in line with supply/demand trends30March 2003

CARGO HANDLINGWorldCargonewsThe Konecranes’ RTG design has taken theUS market by stormtem instead of the usual two fall arrangementand requires a compact planetarygear drive instead of the usual two drum,two gearbox design.This simple reeving system requiresno ancillary devices for anti-sway (althoughhydraulic cylinders are employedfor manual trim and skew control). Thedownside is that the single gearbox mustbe capable of transmitting twice thetorque of a conventional system. Thismakes it considerably more expensive,even when considering the cost of conventionalanti-sway systems.There would also need to be some reengineeringof the support system if thecustomer were to specify an expandingtwin 20 spreader. Liebherr has suppliedtwo RTGs with twin 20s to Ceres inHalifax and has five on order from GulfStevedoring in Jeddah, but has yet to supplyany with expanding twin lift.Pull the other oneThe Konecranes’ anti-sway system can, inone sense, be compared to the Liebherrsystem in that widely spaced ropes formthe stabilising factor, but in this case theropes do not form part of the hoist andare controlled by individual “tugger”winches. The main hoist wires areconfigured in the vertical manner withthe hoist ropes wound onto two drums.This system can also perform finepositioning for trim and slew and thushas the advantage of not requiring anyhydraulic functions. Konecranes thusmarkets the design as an “all electric”RTG, as the only hydraulic requirementis on the spreader. This is fully independentof the crane as the hydraulic pumps,cylinders, tank etc, are mounted on thespreader and only require a power feedand control.An apparent disadvantage of this systemis its complexity, particularly with regardto the synchronisation of thewinches. In total there are two main hoistwinches plus the four tugger wincheswhich all require separate drives. As withLiebherr, Konecranes designs and suppliesits own drive package based on an ac frequencycontrol system and thus is in aposition to control costs and engineer thesystem to suit particular requirements.Big in the USSince being introduced in 1995, theKonecranes’ RTG design has been par-Purfleetrefurb jobThames Purfleet Terminal, operated byCobelfret, has had an early 1980sRMG built by M B Wild completelyupgraded by Qualter Hall. The scopeof the project included fitment of newlong travel motors, refurbishing thegearbox, installing new hoist brakesand assemblies, rewiring and fittingelectronic drive controls.The SWL has been increased to40 tons by fitting a lightweight Elme20-40ft spreader, supplied throughTranstec, and the cantilever has beenbrought back into use, to allow truck/stack interchange outwith the frameand hence enabling denser stacking.A project to refurbish a secondRMG, an elderly Liebherr unit, is nowunderway. This was originally atPurfleet Deep but has been off site forsome time. The tracks at the terminalare being lengthened by 135m and theintention is that the Liebherr willwork the stacking area extension. ❏ticularly well received in North and CentralAmerica. Georgia Ports Authority(GPA) recently placed an order for sixmachines for operation in Savannah, withdelivery scheduled for September 2003.GPA was the first client for the RTGdesign some seven years ago and has goodsupport from KCI Koneports Americas,Konecranes’ local maintenance organisationspecialising in port services. TheRTGs will be manufactured in Europeand erected on site in Savannah.The price for the latest GPA contracthas not been disclosed but theKonecranes’ RTG is definitely out of the“top drawer.” In 2001, for example, MPABaltimore committed to six (+ 12 options)RTGs, stacking 1 over 5 and 6 + 1and including GPS-assisted autosteeringand position determination, at a price ofLiebherr RTG with 50 tonne SWL (fortwinlifts) at Ceres terminal, Port of Halifaxsome US$1.6 mill apiece. Even allowingfor any special Maryland state conditions,this was some deal!The new GPA contract follows thedelivery earlier this year of 10 RTGs tothe Port of Houston’s Barbours Cut terminalin La Porte, and will take the totalof Konecranes’ RTGs operating in Northand Central America to 120 units, around50 per cent of all RTGs ordered in thisregion since Konecranes made its first deliveriesto Savannah. Other recent dealsinclude eight more RTGs for APM Terminals:six more for Elizabeth, NJ (tomake 16); and two more for Houston (tomake four). Another four are at APM’sfacility in Norfolk, Hampton Roads. ❏March 2003 31

WorldCargonewsHEAVY LIFTHeavy lift shipping hangs onFully (or near fully) erecttransport remains the preferredmethod of shippingship-to-shore containercranes, but demand for newcranes slipped last year.Dockwise, formerly the clearleader in this niche market,now finds itself in the numbertwo slot, simply by virtue ofZMPC’s policy of carrying itsown prodigious crane output.Dockwise carried 34 craneslast year on 15 voyages, while 25cranes have been booked so far forthis year occupying 10 voyages.Contract negotiations are currentlyongoing which will resultin about the same level of movesas last year, although deliveryschedules for Fantuzzi-Noell fromthe Abu Dhabi fabrication yard(IMAC) may be disrupted by theIraq/US-UK conflict.Last year Dockwise loaded 10Noell cranes at Abu Dhabi in fourvoyages for Los Angeles out of atotal of 15 cranes in total forFantuzzi group, with four loadedDockwise’s SWIFT carried out this 3-crane shipment for Fantuzzi Reggiane.Note that the complete upper works were lowered inside the framesat Xiamen and one at Monfalcone.This year, Dockwise has carriedsix cranes for Fantuzzi in two voyages.Three loaded at Monfalconefor Maher in New Jersey and anotherthree were transported fromXiamen to Port Qasim, on SWIFTand TERN respectively.Overall, the SWAN class shipsremain firm favourites ofFantuzzi-Noell over the dock typeships, mainly because they aremore cost-effective as they cancarry three or even foursuperpost-Panamax containercranes. However, for the ultralargecranes, it is necessary tomodify the cranes to provide adequatestability when stowedathwartships and also to pass underbridges, as was the case for thethree Reggiane cranes carried bySWIFT earlier this year to MaherTerminals in New Jersey.In this instance, the boomstructure, complete with machineryhouse and backreach, wasplaced inside the portal frame. Theassembly was skidded off as oneunit and the boom was jackedvertically into place (picture left).Chinese takeawayWhile these ships are proving particularlyuseful for multiple cranetransport, having already carriedor being booked for 14 cranemoves this year against 11 for thedock type ships over five voyagesapiece, they could soon face stillgreater competition.Later this year or early next,two Chinese-built semi-submersiblevessels ordered by Cosco willenter service. Sized between theMIGHTY SERVANT and SUPER SERV-ANT class ships, they will pose aserious threat to Dockwise’s SWANclass ships as, says Bert Bekker,Dockwise’s CEO, “we cannotcompete with Chinese pricing.”Bekker concedes that Dockwisemight withdraw two or more ofZPMC now has the world’s biggest fully-errct crane container shipping operator,saving millions in hard currency. to move its cranes. This is one of two cranesdelivered to Ports of Auckland Ltd, New Zealand, last yearits multi-purpose SWAN vesselsfrom the heavy lift market andplace them in the wet productstrade where rates are bad but “atleast we can keep trading.”On the other hand, the Coscoships are highly sophisticated,which is one of the reasons citedfor their delayed delivery. They areequipped with an expensive dynamicpositioning system normallyemployed on offshore drillingand support vessels.As such, if the ships’ charterrate takes this into account, theymay be too expensive for the cranemarket. However, Bekker avers,“Chinese contract rates can be lessthan realistic.”Show a legIn addition to undertaking transportationcontracts, Dockwise isencouraging other “value added”services. Last December, for instance,two second-hand containercranes and two redundant RTGswere transported on DOCK EXPRESS10 from Singapore to Ho ChiMinh City for Portek Systems &Equipment. The ship was redeployedfrom Port Klang, whitherit had carried two new MitsuiPaceco Portainers which had beenloaded in Tamano, Japan.However, Vietnam InternationalContainer Terminal (VICT)not only has a different railspanto the 18m of the quay where theywere stationed in Singapore, itsown two quays have different railspans - 15.24m on the “new” quayand 16m on the “old” one.Accordingly its was decided tomodify the cranes prior to shipment,to enable them to enterservice directly and take advantageof the technical and engineeringexpertise available in Singapore.As previously reported inWorldCargo News, Portek has pioneereda method of changing thecrane span during the loadingphase of the crane when a “forklift”vessel is used.Only the Japanese-operatedbarge BINAN has a similar configurationto the Dock Express dockships and Portek worked closelywith Dockwise to develop thesystem. It facilitates substantial costsavings and greatly reduces thetime that the crane has to be outof service.Step by stepPrior to shipment, reinforcementand new leg joints are added tothe cranes, while lifting bracketsare attached to the “old” leg andpart of it is cut in preparation forremoval. During the first step ofthe operation, the ship lifts thecrane completely from the quayusing the forklift method.Then the ship moves forwardand lowers the landside bogies ofthe crane onto the waterside rail,so that the crane is partly sittingon the rail while still being supportedby the ship. In this positionthe landside legs are cut away,the crane is lifted again while thelandside bogies, sill beam and partof the legs remain on the quay.After lifting clear from thelandside sill beam, the ship movesaft about 2m until the “new” legis in position above the sill beam,with guides on the leg assisting thepositioning of the leg exactly overthe sill beam.The next stage is to lower thecrane on the sill beam using theship ballast system. The new leg issecured to the sill beam and thespan change is completed. In thecase of the VICT cranes, the completeinstallation of the new legsand span change took less than sixhours for each crane.The final step of the spanchange and loading operation isto lift the modified crane clearfrom the quay, have it skidded tothe stowage position andseafastened.On arrival in Ho Chi MinhCity the cranes were offloadedusing the one-step forklift method,resulting in minimum disturbanceto the traffic in the Saigon Riverand at the terminal.The whole project of loading,modification and offloading of thetwo cranes and two RTGs tookexactly two weeks. After theoffload Portek started the commissioningworks, including paintingthe cranes in VICT’s colours.Within three weeks of offload thefirst crane was in operation.Expanding marketWhile Dockwise and ZPMC havea market lead in the fully-erectcontainer crane transport sector,there is plenty of competition inother sectors. New Orleans-basedIntermarine’s Industrial MaritimeCarriers, for instance, has recentlychartered the semi-submersibleCONDOCK III dock ship and shallow-draftINDUSTRIAL LEADER toprovide more diverse ocean transportcapacity.Together, the ships broaden itsscope to carry project and otherout-of-gauge, heavy cargoes. Theyalso provide access to limited,untraditional port environmentsand thus access to new markets.The charter terms are for atleast a year with options to extendif necessary, although no purchaseoptions are included.Intermarine maintains a policy ofkeeping a core fleet of three fullyownedships, which are supplementedwith additional tonnageto suit market conditions and expectations.Intermarine had previouslychartered CONDOCK I, sistership to CONDOCK III, as well ashaving INDUSTRIAL LEADER (ex-HASS BOYE) on charter previously.“Although the overall marketfor project transport remains depressed,the diverse characteristicsof project cargo is as broad as ever,”states Roger Kavanagh, Inter-marine’spresident. “To participate inthe total project market, one cannotlimit the ships to one type orset of vessels.”With CONDOCK III, Intermarinegains the flexibility of a ro-rovessel which is also able to takefloating cargo with a fully ladendraught of less than 5m. INDUS-TRIAL LEADER provides more than4000 tons of shallow draughtdeadweight capacity with an overalllength of less than 9m. Bothships have cranes which are capableof lifts of 120 tonnes.CONDOCK III is a 4400 dwt roro,dock-type vessel with dual 6332March 2003

HEAVY LIFTWorldCargonewstonne cranes combinable for 126-ton liftsand an unobstructed and floodable 87.5mlong hold. This makes it ideal for the carriageof floating plant such as yachts, tugs,small dredgers etc, while modules caneasily be handled at facilities primarilydesigned for barge operations using a roromode over the stern ramp.The 4000 dwt INDUSTRIAL LEADER is amore conventional vessel similar toIntermarine’s existing fleet composition,being equipped with a box hold servedby dual 60 tonne cranes combinable fortwin 120 tons lifts and compensated by aheeling system of sufficient capacity tostabilise the vessel when handling heavylifts to ensure very limited heel and trimangles. The overall length of only 88.4mand fully laden draught of 6m allow thevessel to work at extremely limited terminalfacilities.New centuryOne of the latest contracts undertaken bythe company involved the transportationof a sophisticated 2000 tonnes/hourshiploader and supplying support facilitiesduring its erection on the end of a 1km long jetty. The shiploader was carriedfrom Corpus Christi, Texas to Venezuelaby one of Intermarine’s new series ofheavy lift vessels, INDUSTRIAL CENTURY.The dual orbiting slewing unit,claimed to be the world’s first, was designedand erected by Svedala (nowMetso) Industries for the Sincor Cokeand Sulphur handling project in José,Venezuela.The vessel transported the unitpart-big to the Port of Guanta, whereit was transferred to Intermarine’s 300ftx 100ft ocean going flat deck bargeSOPHIE J. After deployment to José, SOPHIEJ, which is currently based in Venezuela,was used as a staging platform for constructionsupport during the assembly ofthe shiploader at the erection site.The shiploader and all its componentstotalled about 12,000 m 3 of which mostwere odd-size pieces. The heaviest pieceswere the counterweights at 120 and 110tonnes each. The cargo utilised almost 100per cent of INDUSTRIAL CENTURY’s capacity,which features a hatch opening of 71m,box shaped-holds, and adjustable’tweendecks. INDUSTRIAL CENTURY is oneof seven 8000 dwt sister ships with a 16.5knot service speed and two 200 tonneelectro-hydraulic cranes combinable for400 ton lifts. All seven ships are operatingin Intermarine services.Here comes JumboJumbo has also been active in the bulkhandling equipment transport field, recentlybeing awarded the contract to carrya fully-erect Alcan Alesa aluminashipunloader weighing 500 tonnes andmeasuring 59.07m high with a width of22m and a rail gauge of 34.14m. Theunloader will be loaded in Durban, SouthAfrica, by JUMBO VISION using its two 400tonne capacity cranes, and discharged directlyonto rails on the Norsk Hydroberth at Sunndalsora, Norway.Rotterdam-based (and Geneva-registered)Jumbo is also active in the containerhandling equipment field. Itshandy-size vessels are well suited for loloor ro-ro transport of RTGs and RMGs.At the end of May, for instance, its E-type FAIRLIFT is due to load four KCI 16-wheel RTGs in Hanko, Finland forManzanillo in Mexico. This follows a recentcontract to carry four Kalmar RTGs,each measuring 26m high, 26m span and11m wide and weighing 140 tonnes. Theywere loaded in Gdynia, Poland and dischargedat the new Napoleon Avenuecontainer terminal in New Orleans.Navy daysJumbo has also recently completedwhat could be the first of (possibly)more than 20 fully-erect crane movesfor the US Department of the Navy.As previously reported, the USNplaced a US$180 mill contract withSamsung to construct 21 heavy dutyjib cranes over a six year period forvarious bases around the world. Thefirst one was delivered late last year toPuget Sound in Washington state.As this was a military contract, theUSN imposed stringent demands on theselection procedures for the transport,including full compliance with its AccidentPrevention Plan. Jumbo accordinglyhad to submit detailed calculations andengineering drawings for each stage ofthe loading, discharge and carriage, includingsea fastenings of the jib cranewhich had to be approved prior to thecontract award.Not only was this a complicated andexpensive pre-tender operation, there wasalso no guarantee that the contract wouldbe secured. However, once this processhas been carried out, it provides a competitiveedge as well as a reference, forthe future crane moves.Turning headsAs the crane had been fabricated anderected some distance from the load outquay in Koje, a set of temporary rails waslaid to connect the construction site withFour Kalmar RTGs were recently shipped onJumbo’s FAIRLIFT to New Orleans from thefabrication and erection site in Gdynia, Polandthe berth. This meant that the bogies ofthe crane were at 90 deg to the quay edgewhen it was moved into the loading position.However, the crane had to be carriedwith the bogies fore and aft ready tolift directly onto rails in the US base.The 800 tonne lift capacity JUMBO VI-SION was mobilised for this contract. Itlifted the crane using its two 530 tonneSWL cranes, with the lift beams placedunder the machinery house of the crane.This enabled the pedestal, which was nowfreely suspended under the slew ring, tobe turned through 90 deg using thecrane’s own power supplied by its onboarddiesel generator set. ❏March 2003 33

WorldCargonewsINTERMODALKeeping a constant watch on intermodal assetsInterest in real-time intermodal assettracking and condition monitoring isgrowing, although cost remains an issuedespite improvements in price/performanceratios.In addition to the normal cargo/transportasset security issues associated withcustomer service, shipper confidence, JITexigencies, insurance claims, theft, tampering,etc, active, real-time tracking andmonitoring took on an added dimensionin the post-911 environment. In duecourse, available technologies could influencestandards required by US authoritiesfor container entry.Among the latest to enter the field isUK-based OxLoc Ltd. The company’s80AL Asset Alert comprises battery, GPSreceiver, GSM transceiver and antenna.The tag can provide independent, positioningand condition monitoring servicessimilar to those of other tracking systems,such as those from Sky-Eye,Transportdata and Eritrak.GSM commsThe OxLoc unit offers a GPS location asfrequently as every three minutes as wellas a range of condition monitoring parameters.While Sky-Eye makes use of lowearth orbiting (LEO) satellite communications(previously Orbcomm but nowknown as “Leocomm”) which providealmost uninterrupted global tracking,OxLoc relies on GSM mobile phone networksto transmit data back.To this extent it is comparable withthe Transportdata system. This has beenin use with DB Cargo for about a year,but coverage outside Germany is probablysome way off. OxLoc already uses adual-band system and is in the process ofupgrading to tri-band. to provide worldwideaccess to GSM networks.Horses for coursesWhich communications system to chosedepends to a great extent on the applicationand the demands placed on the transportservice providers by cargo owners.Sky-Eye can point to [almost] uninterruptedcoverage. Suppliers using GSM.On the other hand, will claim that, forEurope at least, the coverage is virtuallycontinuous, at least on land.Cost is an issue with customers althoughsuppliers have tried to make themmore transparent. Nevertheless there areconflicting views on the cost of satelliteusage against the roaming charges of GSMnetworks. Where OxLoc does have an advantageis its size; at 53 x 120 x 150 mmit is less than one eighth the size of theSky -Eye P series transceiver unit, and farless obtrusive than Transportdata’sNavMaster unit.Exception reportingAs well as using the tracking location,speed, altitude and velocity (even, it isclaimed, with just four satellite fixes available),the OxLoc 80AL Asset Alert uses anumber of external sensors to detect conditionssuch as temperature and relativehumidity and register and record vibrationand impact. Via the OxLocTrax secureweb site, users can set their ownthresholds for any of these factors and bealerted, by email or text message, when athreshold is passed.When the system is outside the rangeof a GSM network, the OxLoc systemstores the data it collects and transmitsthem at the next opportunity. The customeris able to determine how oftenposition information is collected, fromevery three minutes to once a month, andcan change it via the web.The most obvious out-of-range situationis containers at sea. Customers willbe able to gather collected data and reestablishcontact with their containerswhen they cross the virtual ‘geo-fence’that many ports now have around them.With the OxLoc tag placed inside a containerit is possible to track the conditionsof the load; particularly importantif the cargo is temperature- or humiditysensitive,such as cocoa or coffee beans orany reefer cargoes.Animal magicAn external antenna is available if the tagneeds to be sited inside a container, inorder to give line-of-sight communicationwith the GPS satellites and a goodsignal to the GSM phone networks. Havingoriginally been developed for use inthe extreme conditions of northern Europe/Scandinavia,for the purpose oftracking wild animal movements, the taghas an operating temperature range of -20 degC to + 50 degC.Powered by a ‘D-cell,’ roughly equivalentto three AA batteries, the Oxloc systemcan transmit over 1000 position referencesin one year. With the additionalprimary, rechargeable or external powersource this can be extended to matchscheduled container maintenance plans orcustomer requirements. The power managementsystem and the casing for theunit, developed to withstand extreme andharsh environments, mean that this systemcan virtually be fitted and ignoreduntil the battery needs changing.The Sky-Eye system offers the optionof solar panels to recharge its battery andthe NavMaster system specified for DBCargo has a six year maintenance-freeguarantee, which helps explain its size, insidean explosion-proof casing.As OxLoc is extending its tagging systemto include tri-band operation forcoverage across North America, US-basedwireless communications specialistQualcomm is about to launch its ownsystem that is capable of covering thewhole European market.Following the success of Eutel-TRACS, a version of TrailerTRACS thathas been providing real-time back-to-officelocation information for hauliers inthe UK, the company is poised to launcha Europe-wide version at the end ofMarch. While the Qualcomm system stillneeds the assistance of a tractor-fittedmobile wireless communications system,the company has recently announced thatit is starting to develop a stand-alone systemfor unaccompanied transport. ❏34March 2003

INTERMODALWorldCargonewsBig infrastructure projects head for grand “non”Two major French transport infrastructureprojects are in doubt,following a report commissionedby the government from a toprankingcivil service committee(Conseil Général des Ponts etChaussées) - the Seine-Nord canaland the Lyon-Turin rail link.The government’s point ofdeparture is that its predecessorgave its backing to a number ofmega-schemes without undertakingan objective cost:benefit analysis.With forecasts for economicgrowth suggesting that ambitionneeds to be reined in, the conseilhas delivered a message which ismore to this government’s liking.The Seine-Nord link is the“flagship” project of VoiesNavigables de France (VNF) andwas widely thought to be secure,particularly since the long-discussed,“millenarian” scheme tolink the Saône/Rhône systemwith the Rhine - a massive projectrequiring “staircases” of locks todefy the watershed (bief de partage)- had previously been discarded.CentrepieceAs previously reported, the centrepieceof the Seine-Nord projectis the digging of a new, 105-kmlong canal between the Oise justupstream of Janville, nearCompiègne, and the Dunkirk-Scheldt canal, designed to be capableof receiving barges/pushconvoys up to 4400 dwt.It is costed at around €2.6 billand was to have been ready by2014, but the conseil says it shouldbe put off until (at least) 2020, althoughit is not clear how this affectslinked projects, costed ataround €100 mill, to remove “bottlenecks”on the Oise and theDunkirk-Scheldt canal, originallyslated for completion in 2006.The socio-economic benefitsof the new canal are toolow to warrant it beingprioritised, argues the conseil;one reason being uncertaintyabout corresponding improvementsto canals in Belgium.The conseil reserves judgement,pending the conclusion of reportsunderway by other parties, on anotherproject involving VNF - anew canal dedicated to containerbarges, requiring a lock and turningbasin, between the Oceandock and the new Port 2000 terminalsin the Port of le Havre. Thisis costed at around €100 mill.Latest figures from VNF showthat container traffic on the fourwaterways where container bargesoperate increased 3.7 per cent lastyear (+ 15.2 per cent in TEU/kmterms) to 220,625 TEU: Saône/Rhône - 21,387 TEU; Seine -37,500 TEU; Nord - 35,752 TEU;and Rhin - 125,986 TEU.Huge potentialIn fact traffic on the Nord fell by25.9 per cent to 35,752 TEU, butthe potential of a 4400 dwt Rhineseaports-Paris water link is surelyenormous. At present containeroperator NCS links its feeder servicefrom Dunkirk (for Rotterdam,Intermodal barge traffic over France’s Rhine river ports has increased steadily butthe greatest potential for growth would be via the threatened Nord-Seine linkTwo of France’s most cherished modal shift schemeshave been treated to a touch of “sang froid”Felixstowe and Le Havre) withbarges to Lille, Valenciennes andBéthune. Bridge height is to beraised on the Dunkerque-Valenciennes canal, while theplanned re-opening of theCondé-Pommerouel canal willavoid the Nimy-Blaton-Péronnecanal detour.As previously reported(WorldCargo News, December2002, p90), the new boat lift atStrépy-Thieu and canal bridge atHoudeng provide 1350 dwt bargeaccess between Dunkirk and theBelgian Walloon market (Mons,Charleroi, Liège, etc).Big shockThe civil servants’ opinion on theLyon-Turin link (Transalpine) iseven more controversial. In essence,this project dates back tothe mid-1990s when SNCF Fretelaborated an ambitious schemefor an autoroute ferroviaire betweenAmbérieu-en-Bugey (just east ofLyon) and Orbassano, near Turin(WorldCargo News, February 1995,p23 and February 1996, p22).Subsequently, the project tookon a more obvious political dimension,as it was officially“adopted” at the Franco-Italiansummit of 2001, although the targetcompletion date has sinceslipped from 2012 to 2015.Baulking at the huge costs(now estimated at €12 bill, ofwhich €8 bill would fall on theFrench side of the border), theconseil again questions the socioeconomicbenefits. Instead of anew twin bore base tunnelthrough Mont Cenis (Moncenísio)between St Jean deMaurienne and Susa, more modestimprovements are recommendedat Chartreuse and Belladonna(Modane).This approach would havebeen politically impossible as littleas a year ago. Not only was localfeeling against the Mont Blanctunnel ever again being opened totruck traffic running high, but theoverburdening of the Fréjus as aresult of the Mont Blanc closurewas also becoming intolerable.Perhaps with this crisis having recededsomewhat, the Rhône-Alpes congestion problem has lesspolitical urgency.One reason the report advisescaution is that the major Swissprojects at the Lötschberg andGotthard could in future divertItalian o/d flows away fromFrance. However, this smacks ofcomplacency since the Italians arebehind on their connecting links.In fact Ralpin, the Swiss-Italianjoint venture, has been makingstrong complaints about congestionproblems (see p17).Meanwhile, in a flat dismissalof popular perception, the conseilargues that truck traffic (via MontBlanc and Fréjus) and rail traffic(via Mont Cenis) have not increasedsince 1994. But even if thisis true, what about truck traffic viaVentimiglia?The report has aroused concernin the Rhône-Alpes regionwhile, according to RaymondBarre, a former prime ministerwho heads up Transalpine, withoutthe new rail link the number oftrucks in Rhône-Alpes crossingto/from Italy could reach 4.1 mill/year by 2015 and 6 mill by 2030,compared to 2.5 mill in 1999.Surely there has to be modal shiftto both rail and shortsea.Trouble aheadEven if the Transalpine is saved,short term plans to increase railtraffic via the existing Mont Cenisrail link could be heading fortrouble. Key hauliers/logisticcompanies such as NorbertDentressangle and Charles Andréare threatening to boycott theModalohr-C service planned fora June start-up between Aiton andOrbassano (near Turin) this June.The Modalohr wagon receivedfinal approvals last month.However, not only do thehauliers want SNCF to go backto the original Ambérieu-Orbassano scheme, they also wantit to use the Roos Rail smallwheel wagon, which has neverbeen homologated in France.The ballpark prices beingtouted by Modalohr-C are competitive(€500 round trip and lessthan €300 one way) but the timeelement is less favourable. It takesthree hours to drive from Lyon toAiton, 0.5 hours to load the train,2.5-3 hours to get from Aiton toOrbassano and another 0.5 hoursto unload the train. That is 6.5-7hours but the driver then has towait to observe the remainder ofthe compulsory 9-hour rest period.The longer train journeyfrom Ambérieu would take upmost of the 9-hour break.Call my bluff?Perhaps SNCF should call thehauliers’ bluff, since they are ineffect asking it to absorb biggercosts - the longer the linehaul, theless economic hauling all thatdeadload becomes.Pending interim tunnel gaugeimprovements, Modalohr-C cancater only for road tankers in anycase, a fraction of the overall market.Nevertheless, the service issymbolically important. Gettingoff to a bad start will do nothingto convince Alpine riverains thatanyone shares their concerns. ❏Key potential customers arethreatening to boycott the inauguralModalohr-C serviceMarch 2003 35

WorldCargonewsAny company or entrepreneurwho can come upwith an environmentallyfriendlyproduct that can matchapitong plywood in terms of technicalperformance and be producedin large volumes at a comparableprice could make a killing in thecontainer flooring market.Simple? Unfortunately not.The only “killing” going on atpresent is the continued destructionof the world’s tropical rainforeststo feed the voracious appetiteof industries that have cometo rely on apitong plywood. Notleast among these is the containermanufacturing sector, which last36CONTAINER INDUSTRYFloors - going nowhere slowly?The search for environmentally-friendly alternativesto apitong plywood for container floors is ongoing,but progress to date has been negligibleyear consumed more than 500,000m 3 of apitong and will require atleast as much again this year.And the chances are the industrywill have no problem in securingthe necessary supplies.Despite severe logging and exportrestrictions imposed by the governmentsof Indonesia and Malaysia,the main suppliers of tropicalhardwood container flooring,widescale illegal logging of often“immature” trees continues to ensurea ready supply.Quality may be variable - anissue that is being addressed by theIICL’s recently issued PreferredStandards for Hardwood PlywoodFloor Panels - and the price mayfluctuate - it is currently aroundUS$530/m 3 (US$200 per 20ft set)up from US$480/m 3 (US$180 per20ft set) at the beginning of theyear - but apitong plywood continuesto be almost universallyspecified for dry freight containersand remains the technical andcommercial benchmark againstwhich alternatives are measured.Little headwaySmall wonder, then, that pro- motorsof environmentally-friendlyflooring alternatives have made littlereal headway to date. Though anumber of products have been developedthat match apitong plywoodfrom the technical standpoint,few have come close tomatching it in price or availability.And though most containerowners agree with the need tomove away from tropical hardwoodon environmental grounds,there are not many prepared to payextra for “being seen to be green”while apitong plywood is still inplentiful supply.The latest project to bite thedust is a non-wood “floorboardsubstitute” developed by Koreancoatings manufacturer KumgangKorea Chemical Co (KCC).Manufactured from a combinationof cellulose fibres and resins,the KCC board fully meets theISO plus 33 per cent (7260 kg)floor strength test and is comparableto apitong plywood in termsof weight, strength and moduli ofrupture and elasticity. Its technicalperformance has been validatedby in-service trials carriedout by Maersk Sealand and P&ONedlloyd over several years.Despite setting up a pilot productionplant in Korea and workingon the product for over sevenyears, however, KCC has decidedto shelve the project. A spokesmansaid simply, “Unfortunately wecouldn’t manage to commercialiseit due to its high material costcompared to its market price.”Hanjin will have the Chemfree board installed in 6,000 20ft boxes this yearThe KCC board joins alengthening list of non-woodflooring alternatives that havefailed to make it to market. Anumber of high and low densitypolyethylene plank floors, andboards made from a variety of recycledplastic waste materials, havemade it into trial operation andproved themselves technically,only to be sacrificed on the altarof commercial expediency.Still they comeNot everyone has given up thehunt, however. A “plastic” floordeveloped in Korea by ChemfreeTech Co and marketed by ContainerNetwork Corporation(CNC), has been supplied in smallvolumes to a variety of shippinglines and leasing companies, includingHanjin, Textainer, KMTC,Maersk Sealand, Dongnama andWeidong, since 1996.Similar to the KCC board, theChemfree board is manufacturedin an extrusion process from cellulosefibres and modifiedpolyolefin resin and is claimed toexhibit technical characteristicssimilar to or better than apitongplywood. Hanjin had the Chemfreefloor installed in 3,800 20ftdry freight boxes and 200 opentops last year and will take a further6,000 sets for 20ft units to bebuilt in China by Jindo from thismonth. MOL is also to undertaketrials with 50 20ft units this year.According to CNC, a largenumber of potential customershave enquired about the Chemfreefloor and expressed the wishto carry out trials in order to compareit with apitong plywood.Supply, however, is currently limitedto around 900 TEU sets permonth and at US$1000/m 3 (CIFChina), more than a few are likelyto baulk at the price.Another Korean company,Dongyang Hichem Co, which isbest known for its range of ventilators,sealants and compositestringers for reefer containers, hasalso developed a new plastic floorand carried out a trial last monthfor K-Line at the Shanghai CIMCFar East factory in China.According to Kazufumi Katajimaof K-Line’s containershipsbusiness group asset managementteam, the test was unsuccessful asthe Dongyang board cracked duringa pass of the ISO test machine.Undeterred, however, Dongyanghas taken steps to strengthen theboard and a second trial is scheduledfor the end of this month. “Ifsuccessful, we will carry out fieldtrials with the new floorboard innew containers,” Katajima said.The cost of the Dongyangboard has not been revealed, but,like Hanjin, K-Line would appearto be willing to swallow any premiumover apitong plywood, particularlyif the promised downstreambenefits of reduced M&Rcosts and the “recyclability” ofsuch boards at the end of the container’slife prove to be valid. “Thedevelopment of new floorboardsis an important matter for us. Weshall adopt them positively in placeof apitong boards in the near future,”Katajima said.Bamboo promiseOf all the alternative wood andnon-wood container floors developedover the past few years, theGreentech bamboo/pine compositeplywood floor, developed byHong Kong-based Techni-ConInternational Development andmanufactured in China by JianouGreentech Boards Industry Co, iswidely acknowledged as havingshown the most promise in termsof environmental acceptability,technical performance and price.Manufactured from a core of 19plies of Chinese red pine sandwichedbetween outer plies ofbamboo - both rapidly renewableresources - the Greentech floor hasbeen installed in many thousandsof containers since its introductionin 1996, major users includingMaersk Sealand and P&ONedlloyd. Though slightly moreexpensive than apitong plywood, itwas only a limited production capacityof around 2000 TEU/monththat prevented Greentech frombeing more widely adopted.As previously reported inWorldCargo News, however, plansfor a major increase in productioncapacity were stymied in mid-2001 when a quality defect in thepine core led to a large batch ofGreentech floors being rejected bythe customer. Investor support waswithdrawn and Jianou Greentechwas forced into bankruptcy. Effortsby Techni-Con to find new investorsfor the project have so farbeen unsuccessful.Alternative sources?It now transpires, however, that -officially or unofficially - theGreentech floor is available from atleast two other locations in China.Guolin Bamboo and Rattan ScientechCo in Anhui Province claimsto have signed an agreement withTechni-Con for “exclusive authorityfor the manufacturing and salesof bamboo/wood composite containerfloors,” though Techni-Conitself denies that any licence arrangementwith Guolin exists.Notwithstanding, Guolin hasregistered Greentech as a trademark in China and is actively promotingit. Samples are known tohave been sent to various potentialbuyers. Production equipment importedfrom Germany is claimedto be capable of producing 20,000m 3 (around 55,000 TEU) ofGreentech floors per year.Meanwhile, Zhonglin IndustryDevelopment Co in Shenzhen,in which Guolin has an interest,also claims to have authority tomanufacture Greentech floors.The company puts its annual capacityat 22,000 m 3 (around60,000 TEU) per year.Guolin and Zhonglin’s combinedcapacity of 42,000 m 3 /yearis, of course, a drop in the oceancompared to the 500,000 m 3 plusof apitong plywood currently usedby the container industry annually.It is, however, at least a small step inthe right direction. ❏March 2003

CONTAINER INDUSTRYDecal makers feel the pressureSuppliers of decals, in commonwith most producers ofcomponents for the containermanufacturing industry,have found the going tough inrecent years. The average price ofa finished vinyl decal set has longremained static and forced all participants,from companies producingthe precursor film to those carryingout decal conversion work,to pare down overheads.Prices have been largely heldin check by intense competitionand a general scaling-up andstreamlining of production processes.Today, even the most expensivefinished container decal, madefrom engineering grade cast vinylfilm, can be obtained for a littleover US$5 per m 2 . Average rawmaterial costs are around US$3-4per m 2 or below. These prices arebarely unchanged on their levelin the mid-1990s.The cheapest decal set, madefrom non-cast vinyl and featuringminimal logo content (but includingall mandatory ISO numbersand lettering), can today be purchasedfor a price as low asUS$10-15. Even the largest banner-stylecorporate liveries, specifiedby some shipping lines, nowrarely cost much over US$100.The shift towards the use of decalsof ever-smaller size has longbeen an industry trend, althoughsome container operators havereverted in more recent years tolarger displays in the wake of ultra-competitiveprices.Market ledThe overall annual demand fordecal film is, of course, determinedmainly by global container output,which has fluctuated sharplyin recent times. Back in 2000, almost1.3 mill decal applicationswere required for new dry freightboxes, which compared with below1 mill in 1999. At least 90 percent involved the fitting of vinylsets, with the balance accomplishedby using the more recentlyadopted paint mask alternative.The total annual figure fell tonearer 850,000 sets for 2001,when the market was weaker, butthen recovered to around 1.1 millin 2002 and could be at a similarlevel this year. It is further estimatedthat around 150,000 decalsets are required annually for reefers,tanks, domestic boxes andother specials, which can sometimescommand a small premium.Naturally, the near-static vinyldecal price has been dictated bythe recent steady fall in newbuildbox prices, which remain at a historiclow. Many container buyershave, at the same time, increasinglyopted to leave the procurement ofdecals, as well as other items, tothe box builder. This has furtherimpacted pricing, as well as theproduct/application selected, ascontainer factories invariably usethe cheapest supplier rather thanopt for a particular specificationas is the case when the containerpurchaser makes a definite choice.Cast offsThis trend has accelerated the useof cheaper calendered vinyl filmsrather than the cast alternative, andalso encouraged the use of thepaint mask or stencilling method.The latter technique, which is thecheapest option available, is nowused to produce logos on a rising10-15 per cent of all new containers(see page 39).However, the overall businesshas clearly been impacted most bythe near wholesale shift of all vinylcontainer decal fabrication toChina. Around 95 per cent of allprinting/conversion work is nowContainer decal manufacturers may have witnessedsome improvement in demand following the recentrecovery in global box production, but they remainunder as much pressure as everChinese State Railways recentlystarted using Ritrama film for itscontainer decalscarried out by a few Chinesecompanies, with producers in allother regions, including SouthKorea, now fast exiting the marketaltogether.Precursor film could also soonbe sourced in greater quantitiesfrom within China, even thoughbuyers have voiced doubts as to thequality of some Chinese film producedto date. The leading internationalsupplier of cast vinyl film,3M Co, established a Chinese subsidiaryseveral years ago, whileAvery Dennison, which producesboth cast and calendered types, isplanning to start manufacturing inShanghai later this year.The new factory is presentlyunder construction and it willproduce Avery Dennison’s rangeof cast (XL1000) and calendered(600 Series) container decal films.All production of these productswill be transferred in stages fromtheir present sites in the US andEurope, with the whole processbeing overseen initially by engineersfrom Avery Dennison. Eventually,according to technical marketingmanager, Chris van deKlugt, the plant will run autonomously,with all raw materialssourced in Asia rather than beingimported from Europe/US.Cost factorPredictably, the decision to set upin China was driven almost whollyby the need to cut production anddistribution costs. As van de Klugtputs it, “China is now home tothe whole container manufacturingprocess and claims the vast majorityof screen printers, so it islogical to relocate our productionto serve this market direct.”The prospect of cheapermanufacturing and more immediateaccess to end-users is expectedto maintain the competitivenessof Avery Dennison in thecontainer market and safeguard itsfuture involvement.Avery Dennison has been aleading supplier of container decalfilm for many years since itsacquisition of the UK Fassonrange. 3M too is a longstandingparticipant, although its involvementin the container sector is indecline. It is apparent that thecompany has been discouraged bythe ongoing fall in margins andinstead concentrated on more lucrativemarkets, including the supplyof vehicle display logos andspecialist reflective materials.3M’s main production centresin the US and Europe have alsostayed with the exclusive manufactureof cast vinyl for containeruse, which remains a relatively expensiveoption. However, itslargely autonomous division inChina, which is increasingly addressingthe needs of the localcontainer market, is not confinedsolely to the supply of cast vinyl.Other important suppliers ofprecursor vinyl are MACtac ofBelgium and Ritrama Groupbased in the UK. MACtac, whichis part of the Bemis Group, a leadingUS manufacturer of flexiblepackaging, is another very wellknown supplier of container decalfilm. Most production is stillcarried out at the company’s mainplant in Belgium and, althoughsales for container end-use makeup only a small part of its overallbusiness, the company is still committedto serving this sector.MACtac has traditionally focusedon the manufacture ofcalendered vinyl, but also introduceda cast version in relativelyrecent years. Despite this, MACtacnotes a recent steady growth in thedemand for calendered productsand continues to strongly promotethe latter range.Export manager Serge Vincartstated that “the specification ofmost calendered films has improvedgreatly during the pastdecade and they today offer thesame mechanical strength andconformability as cast versions.Crucially, though, they are stillcheaper to produce, which explainsthe steady growth in sales[to the container sector].”As with the other suppliers,MACtac has made efforts to limitoverheads and improve its linkswith the dominant market inChina, with just about all vinylWorldCargonewsdestined for use as container decalsnow routed through its branchoffice in Shanghai. A rapidly growingshare is sold direct to localscreen printers and ultimately tomajor container producers.China focusRitrama similarly offers cast andcalendered vinyl versions of decalfilm, and is also continuing to selldirect into China. Customers includeCosco Containerlines,China Shipping Group and, mostrecently, Chinese State Railways.All original manufacturing is stillcarried out in Europe.Ritrama has now been activein the container sector for severalyears and recently extended itsrange to include a series of solvent-basedadhesive products,which were developed to assist theapplication of the finished decalin demanding and extremely lowtemperatureconditions.The innovation is applicable toits entire range of products andcomplements the use of emulsionbasedadhesives. Moreover, thenewly enhanced range comes fullysupported with a seven-year lifetimewarranty and ISO9000 certification.Ritrama technical man-March 2003 37

WorldCargonewsCONTAINER INDUSTRYager Martin Attwood stated thatthis latest development, coupledwith the company’s flexible manufacturingprocess, assists containerdecal printers and buyers in theirfinal decision on specification. Thevinyl sheets can, for example, beproduced to customer-specificwidths, thereby minimising waste.Leading lightThe largest single supplier of containerdecal vinyl is the ArlonGroup of the US, which attainedits dominant position through theearlier acquisition of the USMeyercord Co in 1998. Meyercordwas one of the best knownproviders of decal precursor materials,having developed an allinclusivesystem comprising vinylfilm, top clear and branded inks.This had been perfected to producehighly durable decals, capableof application and operationin all climatic temperatures andconditions.The former Meyercord rangehas since been extended and renamedMII, and is increasinglybeing sold under the Arlon brand.The majority of sales still concernfilm of high-grade calenderedtype, which was a Meyercord speciality,although Arlon has addedits own cast version as well. Oneof the best known formulations isthe company’s 72A Series “noncast”vinyl, which is particularlysuited for all-weather applications.Other variants include 52P, 22Tand 87V. All, as in the past, are suppliedtogether with high qualitygeneric inks as part of the totalpackage.Arlon provides an estimated 45per cent of the total world requirementfor container decal vinyl andhas clearly benefited from the recentswitch, on the part of manyend-users, to a greater use of engineeredcalendered vinyl. The latteris now reckoned to accountfor well over 60 per cent of alldecal film specified globally forcontainer end-use and compareswith a share of below 50 per centseveral years’ back.Not what they seemAccording to George Notter, salesmanager (Asia Pacific), Arlon’sannual production of cast vinylcontainer decal film has alsogrown rapidly since its introductionin 2000, though output of thismaterial has declined more recently,mainly because of the increaseduse of locally made “cast”container films in China. Many ofthese have subsequently beenidentified as cheaper domesticcalendered grades, however, and anumber of purchasers, includingP&O Nedlloyd and Triton Container,are understood to havemounted an investigation. In someinstances, the deception was notpicked up until the finished containerwas finally inspected.Some of the suspect film originatedfrom 3M China, which hasconfirmed that it is definitely oflow-cost calendered type and thusneither directly suited to containerend-use nor from official sourcesin the US or Europe. Much of thedeception is alleged to have beencarried out by certain screen printcompanies in China, while it hasclearly been overlooked by somecontainer manufacturers as well.The problem of utilising potentiallyinferior decal products ishardly new, with most recent yearsfeaturing at least one scare story.In the late 1990s, one major Europeanshipping line experiencedpremature failure of many thousandsof decals, following the unauthoriseduse of a low qualityprinting ink. This was found tohave reacted with the decal adhesiveand caused it to weaken.Again, much of the blame wasapportioned to the (Chinese) decalconverter even though little actioncould be taken subsequently.In this particular instance, thedegradation of the decal adhesivewas accelerated by exposure tohigh temperatures, with containerslanded regularly in the MiddleEast experiencing the earliestand most frequent losses of decalpanels and lettering. It cost the operatoraround US$50 to re-decaleach container, not to mention thedisruption associated withgrounding equipment that waslacking vital ISO serial numbersand identification lettering.Cost pressuresSuch incidents probably stem fromthe extreme financial pressure beingborne by film suppliers andscreen printers alike, as they arecompelled to keep productioncosts as low as possible.And observers suggest that thelikelihood of sharp practice couldwell increase, with the final containerbuyer placed at a growingdisadvantage, due to the very closeproximity of many Chinese screenprint shops to each other, as wellas to their main box building customersand to suppliers of locallymade film. At the same time, mostnon-Chinese suppliers have beenshut out of the business altogether.Nowhere has this been moreapparent than in South Korea,where the manufacture of vinylcontainer decals has now all butceased. This contrasts with thesituation only a few years backwhen the country still led themarket and met over 40 per centof world demand.One of the best known names,Kochiam International, has onlyin recent weeks decided to stopproducing container decals, aftermore than 20 years in the business.This firm, which achieved anannual output of over 350,000 setsat its peak, was still managing tosell over 100,000 sets two yearsago. Managers at Kochiam haveconfirmed the imminent closureof its container decal factory, withno orders accepted from March2003. Only the company’s productionof advertising signs andvehicle liveries is to continue.The exit of Kochiam followsan earlier withdrawal from themarket of its former Korean rival,Sun-Hwa Decal Co. This leavesKorea Decal as the sole producerof vinyl container decals, althoughits output is now also in steep decline.Korea screen printing firmshave, for many years, been increasinglyless able to compete withtheir Chinese counterparts onprice and delivery, while mostChinese box builders have favouredlocal decal suppliers evermore strongly. In addition, Koreanmakers of vinyl decals have furtherlost out to their local paintstencil counterparts.Korea’s two established boxbuilding groups, Jindo Corp andHyundai Mobis, have traditionallystayed loyal to home-grown componentproducers, but are nowbuying only small, and decreasing,volumes of decals. Hyundai’s productionis now confined to justone Chinese plant, buildingaround 60,000 TEU per year,while the three sites in China stilloperated by Jindo are not buildingmuch more than 100,000TEU per annum. This, combined,is barely 10 per cent of averageworld output.Last of the fewIndeed, much of the business nowopen to non-Chinese producersof decals (not to mention otherbox components) is that beingplaced by a few, strong-mindedcontainer buyers, who are keento prevent the Chinese industryfrom dominating entirely. This hasallowed a few non-Chinese decalplants to stay active, albeit ona very small scale. They includeBangkok Decal Industries inThailand, which is still producingsmall runs of container decalsfor selected container operators/owners.In Europe, meanwhile, it isonly the relatively small refurbishmentsector, plus a requirement forliveries for fitting to swap body,palletwide, tank and other morespecialised box types, which isnow keeping the local manufactureof vinyl decals alive.Sies, of Italy, for example, iscontinuing to produce decals foruse by Italian box builders, butconfirms that just about all itsoutput now goes for swap bodyend-use. The company exclusivelyuses cast film, from MACtac andAvery Dennison, and now alsooffers its own paint stencil alternative.The latter, according toAgostino Casale, vice-president, isalready gaining in popularity, particularlyamongst swap body operators.Sies’ overall involvementin the container sector still accountsfor 40-50 per cent of companyturnover, although that shareis inevitably in decline.Another longstanding Europeanname, Siebdruck Blasé ofGermany, is also known to be producingsome container decals, buton a very small scale and only forlocal use.Rapid growthThe recent casualties in Korea, Europeand elsewhere have served tofuel the rapid growth in Chinesedecal production and been sufficientto support a number of largescalescreen-printing plants. All arecapable of a substantial output and,as with the box building sector,could out-produce actual globaldemand by a very wide margin.Amongst the largest is JiangYin Longchang Plastics ChemicalCo (JL Plastics), which is basedin Jiangsu Province and has beenmanufacturing container decalsfor over 10 years. It claims to haveJL Plastics, which has been manufacturing container decals for over 10 years, isputting increasing emphasis on the domestic marketan installed capacity sufficient toproduce up to 400,000 containersets per annum, with output comingclose to this figure in somerecent years.General manager Su Fuzhangindicated that the majority of finishedsets are supplied direct tocontainer manufacturers, with“only a part sold to the actualbuyer of the containers.” Decalfilm is purchased from all the mainsuppliers, including Arlon, 3M,Avery Dennison and MACtac,.JL Plastics is another supplierto have recently added a separatepaint stencil range. However, it hasno plans to expand its existingoutput for the container industry,even if the company is movingfurther into other, more locallyoriented business sectors.JL Plastics has a local rival inShanghai in the shape of NewCentury Decal Co - ShanghaiPudong New Area. This factorywas originally associated with itslarger, older and more southerlycounterpart, New Century Decal(Shenzhen) Ltd, but broke awaycompletely in 1999 and has sincetraded autonomously. Despite retainingthe New Century name,the Shanghai company has awholly separate management andmarketing/sales organisation fromthe Shenzhen operation and isunderstood to have increased itsoutput of container decals in veryrecent years. Its facilities are alsorelatively advanced and feature ahigh degree of computer control,as the plant was only establishedin the late 1990s.NCD (Shenzhen), meanwhile,dates back to the 1980s, but hasgreatly enhanced its screen printingprocess and capacity in recentyears. The company operates at a2,000 m 2 site close to Shenzhencity/port and has recently gainedthe updated ISO 9001 (2000) accreditation.This followed the earlieraward of ISO 9002 (in 1999).Annual production of decals hasincreased tenfold since the early1990s, and currently amounts toupwards of 200,000 sets/year,equating to a delivery record ofmore than 2.25 mill TEU worthof decals in the 12 years to end-2001. Output peaked at a record340,000 TEU (or 210,000 sets) inthe highly productive year of 2000.NCD (Shenzhen) managed tosupply 275,000 TEU worth ofdecals in 2001, when the marketwas significantly down. The companyregularly imports and stocksfilm, application tape, inks andother precursor materials from allmajor suppliers, and has sold itsfinished product to the vast majorityof container owners(lines and lessors) at some time oranother. Crucially, it has also establishedstrong and extensivebusiness relationships with manycontainer builders during the pastdecade. All sales/marketing is handledthrough the NCD (Far East)office, which has been registeredin Hong Kong since 1990.Near neighbourOcean Shine Decal Industries(Shenzhen) Ltd operates in thesame vicinity as NCD (Shenzhen),but lays claim to an even greaterscreen print capacity. The company’s3,000m 2 plant commencedoperation in 1995 and today offersan annual capability to produceover 360,000 TEU worth ofcontainer decals (including its ownpaint mask version), with the containermarket still accounting formuch of its business and formingthe main focus of research. It toohas ISO 9002 accreditation, andmarkets through a separate officein Hong Kong.Ocean Shine has similarly soldto most container operators/ownersat some time, and can list morethan 50 regular buyers, althoughit confirms that the majority oforders are now placed directly bybox builders in China (and overseas).As such, only a small quantityof sales is transacted with thefinal buyer. However, as stated byproduction manager, M T Tang,much of the original specification(including the selection of filmsupplier) is decided by the actualpurchaser of the container, ratherthan by the factory where it isbeing produced. Vinyl film issourced mainly from Arlon, AveryDennison and 3M.New entrantThe most recent entrant in Chinais Shenzhen Graphictech DecalCo (SGDC), which was foundedat the beginning of 2002. Thecompany is headed by KeithBrentnall (ex-Ocean Shine andNCD), who confirmed that, despitethe challenge of “starting itsdecal production from scratch,”SGDC has been very successful inwinning specification approvalfrom numerous owners and is fastbuilding a reputation in a verycompetitive, cut-throat sector.Listed amongst initial customersare most top leasing names, includingAmficon, Bridgehead,CAI, Cronos, Capital Lease,Transamerica Leasing, Triton andTextainer, and shipping lines suchas CP Ships, Delmas, Geest NSL,Hamburg Süd, Maersk Sealand,Mitsui-OSK, MSC, PIL, Zim andSafmarine. However, in line withall its larger competitors, SGDCis primarily doing business withthe container builder, rather thanfinal purchaser.Sales during its first yearamounted to around 90,000 decalsets and are forecast to increase byat least 20-30 per cent in 2003.Around 70 per cent of this combinedoutput comprised conventionalvinyl decals, with the balanceproduced using SGDC’s newlydeveloped paint mask system.As a result, SGDC is alreadylooking to move to larger premiseslater this year, while incorporatingmore computer plotters forthe manufacture of kiss-cut markings.These, according to Brentnall,are far more flexible than usingsteel or thermal dies.The company is also evaluatingthe potential for using ultravioletinks for container decalprinting, which is expected to reducecosts significantly by cuttingapplication and drying times andlowering the incidence of print rejects.At the same time, SGDC isattempting to broaden its manufacturingoperation to cover productsfor domestic use in China. Theseinclude packaging labels, vehicleliveries and aids for the constructionand decorating industries. ❏38March 2003

CONTAINER INDUSTRYWorldCargonewsStill making its markThe use of paint mask or stencil decalsis continuing to gain ground,but it still courts some controversy.Although a growing number of containerowners see it as an ideal lowcostalternative to the use of vinyldecals, others remain sceptical.There is also a division of opinionamongst container manufacturers, whichhave to incorporate the technique withintheir existing production lines. Some haveencountered few problems, but otherscomplain of loss of productivity and extraworking hazards created by the secondaryspraying operation, which is oftencarried out manually.The durability of paint-on decals isalso a continuing source of debate. Exampleshave been seen where lighter colourshave darkened and discolouredwithin a few years due to a slow ingestionof grime and fumes. Detractors attributethis problem to the fact that thepainted decal is not always baked on afterinitial application. As the decal surfacesnever undergo proper curing at high temperature,they can remain porous and reactiveover an extended period.Some box builders have had difficultyaddressing this problem because the paintingof decals is a secondary process andrequires a re-run of the container throughthe manufacturer’s paint booth. This, theysuggest, is too complicated and time-consumingto be accommodated easily.Minor issueSuch difficulties are largely dismissed bythe strongest paint mask adherent, MaerskSealand, which suggests that it usually requiresonly a small reconfiguration ofexisting manufacturing lines to accommodatethe process and that the painttreatment issue is greatly overstated. Althoughthe company accepts there maybe some loss of overall productivity whenusing the paint mask system, it has notbeen found to materially affect larger runs.Moreover, because the manufacturingprocess is slowed slightly, it actually providesmore time for the paint to cure andMaersk Sealand reports no problems todate with fading or degradation. Althoughthe Maersk Sealand logo is black andlargely immune to any discolouration, thecompany has continued to specify a blueside-panel/ white star logo, none of whichhas shown any more deterioration whenpainted than would have occurred if avinyl decal had been used. The oldestpainted logos have been in service since1997 and are approaching the warrantytime limits offered for vinyl decals.The biggest attraction of painted decals,of course, is reduced cost, withMaersk Sealand claiming it has achievedsavings in the multi-million dollar range.The company states that it could bespending around US$140-150 per vinylcontainer livery, compared to aroundUS$40-50 when stencil systems are used.Furthermore, “tired” or scratched logosare easily retouched at depots.Pioneering roleKorea-based Dado Corporation was oneof the pioneers of the paint mask system,having launched and patented its processin 1996. Stencil sales have since grownsteadily, with more than 100,000 sets suppliedin 2000. That number has sincefallen, primarily because Maersk Sealandand other shipping lines reduced their investmentin new containers during 2001and 2002. The challenge for Dado, therefore,is to attract more business from leasingcompanies, many of which are continuingto purchase containers in largenumbers, but still specify conventional decals.One already using the paint masksystem is Capital Lease, which has beenimpressed by the sizeable cost savings.Dado’s main rival in Korea isAD&ADD Co, which set up its currentfacility in early 2001. This company exportedaround 25,000 stencils of its owndesign during 2002 (its first year of commercialproduction) and is supplying boxfactories across China, including thoseoperated by CIMC, TYC and Jindo. Thestencils have been used to mark new containersfor Hapag-Lloyd and a spread ofKorean carriers, including Heung-A,KMTC, Pan Ocean, Sino-Kor andDongin. Managing director ES Tark is anticipatinga doubling of output during thecoming year, with most buyers lookingto place repeat orders. He commentedthat the company’s existing plant is ableto cope with any increase in demand.A third Korean producer is Jung EunTrading Corp, which has been active inthe decal field for almost 30 years and originallysupplied liveries and name plates toformer Korean box builder, Hung MyungIndustrial Co. The company launched itsfirst paint stencil system in 1993 and hassince sold over 200,000 sets. Recent productionhas topped 40,000 sets per year,with Hapag-Lloyd, Hyundai MM,Dongnama Shipping and Maersk Sealandamongst its biggest clients.Chinese challengeAlthough the majority of paint mark stencilsare still being produced in Korea, thiscountry no longer has the business to itself.Stencil manufacture has alreadystarted in China, and is growing fast.Almost a third of all container decaloutput from the new ShenzhenGraphictech plant, for example, is of stenciltype, while this business is increasingin importance for nearby Ocean ShineDecals. The latter has introduced two versionsof paint mask stencil, made respectivelyfrom paper and vinyl (for applicationto deeper corrugation depths), andbecome a nominated supplier to variousend-users, including Capital Lease andTermcotank. It has also supplied stencilsto Brigantine Services, for application torefurbished Maersk Sealand boxes, and toover 12 box building plants in China.Stencil production is also now beingcarried out by New Century Decal inShenzhen and most recently by JL Plastics,in response to increased customerdemand. ❏Maersk Sealand reports no problems withfading or degradation with paint mask systemsMarch 2003 39