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<strong>Baltic</strong> <strong>Transport</strong><br />
bimonthly-daily companion<br />
№ 1/2016 (69), FEBRUARY/MARCH<br />
€ 35 (incl. 5% VAT)<br />
Journal<br />
ISSN 1733-6732<br />
Report<br />
<strong>Baltic</strong> transport 2015 highlights<br />
Focus<br />
Warehousing<br />
Technology<br />
A concept for future shipping<br />
<strong>Baltic</strong> <strong>Transport</strong> Journal<br />
is an official media partner of:
3<br />
Regular columns<br />
3 Editorial<br />
6 BTJ Calendar of events<br />
8 Market SMS Extended<br />
10 What’s new?<br />
12 BTJ Maps News<br />
14 On the roads:<br />
R.I.P. fossil fuel world<br />
Paris, December 12 th , 2015<br />
by Przemysław Myszka<br />
56 Collector’s corner<br />
57 <strong>Transport</strong> miscellany<br />
58 Who’s who<br />
16<br />
Economy<br />
16 How happy is the <strong>Baltic</strong> region?<br />
– The World Happiness Report 2015<br />
by Maciej Kniter<br />
20 Stable growth kept in suspense<br />
– The BSR’s economic trends<br />
2016-2017 by Aleksandra Plis<br />
In this issue<br />
22<br />
Maritime<br />
22 One stop LNG shop<br />
– Small-scale LNG solution for<br />
bunkering, distribution & floating<br />
terminals<br />
by Stig Anders Hagen, Founder and<br />
Director of Kanfer Shipping<br />
24 Lifting the game – part two<br />
– Port performance & productivity<br />
by Charles Moret and Andy Lane,<br />
Partners at CTI Consultancy<br />
28 Growth requires cooperation<br />
– Interview with Kimmo Mäki,<br />
Managing Director of the Port<br />
of Helsinki by Przemysław Myszka<br />
40<br />
Newsletters<br />
<strong>Baltic</strong> Ports Organization<br />
40 Three-in-one – Associated<br />
Danish Ports by Lucas Møller<br />
41 Dealing with ships’ ecofootprint<br />
ashore – Gedser port<br />
to have a scrubber treatment<br />
plant by Lucas Møller<br />
”Despite the increasing average size of vessels,<br />
productivity is actually in decline. The industry<br />
is in need of a revolution. A change in qualitative<br />
not quantitative nature is required.”<br />
Charles Moret and Andy Lane, Partners at CTI Consultancy<br />
Read more in the article: Lifting the game – part two, pgs. 24-26<br />
4 | <strong>Baltic</strong> <strong>Transport</strong> Journal | 1/2016
Contents<br />
33<br />
Report<br />
<strong>Baltic</strong> transport 2015 highlights<br />
33 A (rather) quiet year<br />
by Przemysław Myszka<br />
43<br />
Focus<br />
Warehousing<br />
43 Cost-to-profit<br />
– Transforming warehouses and<br />
distribution centres<br />
by Katarzyna Chmielewska<br />
46 Connecting the unconnected<br />
– The Internet of Things in<br />
warehousing and logistics<br />
by Bartosz Dąbrowski<br />
48<br />
Technology<br />
48 A concept for future shipping<br />
– The Sea Traffic Management<br />
Validation Project<br />
by Ole John and Anisa Rizvanolli,<br />
Group Ship & Information<br />
Management at Fraunhofer CML<br />
50<br />
Logistics<br />
50 Delivering the goods – Interview with Zbigniew Nowik, OT Logistics’ President of the Board by Przemysław Myszka<br />
52 Intelligent cargo – Going beyond today’s port & cargo community systems<br />
by Marie Pavesio, Communications Manager at Marseille Gyptis International (MGI)<br />
54 The law will safeguard your freight – The UK Supreme Court & Convention on the Contract for the International<br />
Carriage of Goods by Road (CMR) by Peregrine Storrs-Fox, TT Club’s Risk Management Director<br />
1/2016 | <strong>Baltic</strong> <strong>Transport</strong> Journal | 5
BTJ 1/2016 (Feb.-Mar.)<br />
Issues distributed at:<br />
BTJ 2/2016 (Apr.-May)<br />
Issues distributed at:<br />
6 | <strong>Baltic</strong> <strong>Transport</strong> Journal | 1/2016<br />
Report: <strong>Baltic</strong> transport highlights 2015 | Focus: Warehousing<br />
LNG International Summit, 7-8 March 2016, FR/Cannes, www.lngsummit.org<br />
The summit is a platform where LNG experts will meet to discuss new projects, the latest trends and share their experiences. The agenda<br />
includes such LNG-focused issues as technical conferences on ports and terminals, bunkering and environmental safety in transportation,<br />
LNG pricing and trading worldwide, and much more.<br />
<strong>Transport</strong> Week, 8-10 March 2016, PL/Sopot, www.transportweek.eu<br />
The 6 th edition of the <strong>Transport</strong> Week international conference will once more gather in one place a rich variety of maritime, intermodal, LNG and<br />
EU transport policy representatives for a three-day event packed with in-depth presentations, engaging panel discussions and focus seminars.<br />
Seatrade Cruise Global, 14-17 March 2016, US/Fort Lauderdale, www.seatradecruiseglobal.com<br />
For more than 30 years the international exhibition & conference has been serving the cruise industry by bringing together buyers and suppliers<br />
for networking, sourcing, innovation, and education. After 27 years in Miami, the 2016 event will be held in Fort Lauderdale, featuring<br />
a revamped sectored show floor as well as a multi-track conference agenda on the state of the global cruise industry.<br />
9 th Annual Pipeline Integrity Management Forum, 15-17 March 2016, DE/Berlin, www.fleming.events<br />
This year's edition will focus on innovations, the latest technologies and risk-based inspections, tackling practical aspects of pipeline integrity<br />
management, inspection & surveillance with the use of drones and robotics, life extension & surface protection, unlocking the potential<br />
of big data in developing the pipeline business, challenges of using biogas in national grids, as well as pigging and non-piggable pipelines.<br />
Green Ship Technology Conference 2016, 15-18 March 2016, DK/Copenhagen, www.greenshiptechnology.com<br />
The following year’s agenda includes sessions, panels and case studies on, among many, understanding the implementation process of CO 2<br />
measure, monitor and verify provisions, enforcement of ECAs and the lessons to be learned from the realization of the Ballast Water Management<br />
Convention, as well as on reducing GHG emissions and ship-owners’ uptake of new technologies.<br />
LNG Congress Russia 2016, 16-18 March 2016, RU/Moscow, www.lngrussiacongress.com<br />
The meeting will focus on the liberalisation of the Russian LNG export market and the related development opportunities. The event will also<br />
deliver the latest updates on a number of LNG projects, incl. Yamal, Arctic 2, Pechora, <strong>Baltic</strong>, Sakhalin, as well as Snøhvit – the world’s first project<br />
carried out in the Arctic. The Congress will put a spotlight on experiences with running the Qatargas LNG plant, too.<br />
Technical seminar on container weight verification, 17 March 2016, LV/Riga, www.porttraining.lv<br />
This technical seminar, held in the Port of Riga, will debate on the new SOLAS changes in container weight verification requirements. The<br />
seminar will particularly focus on the new requirements from the perspective of shippers, terminal operators & port authorities, as well as<br />
other issues, such as tackling risks, rules enforcement, exchange of verified mass information, container weighing certified and calibrated<br />
equipment (incl. solution demonstrations).<br />
Gasification 2016, 23-24 March 2016, NL/Rotterdam, www.wplgroup.com<br />
Apart from a market overview, the 5 th Annual Gasification Summit will tackle such issues as biomass and waste gasification (particularly for<br />
chemical and fuel production), recent developments in gas clean-up, coal gasification technologies in the EU and overseas (incl. commercialisation<br />
of the underground coal gasification).<br />
SmartRail Europe, 19-20 April 2016, NL/Amsterdam, www.smartraileurope.com<br />
SmartRail Europe will be a meeting place, showcasing technology solutions and creative insights to drive towards the future competitive<br />
rail networks. The event combines four congresses – Smart Signalling & Telecoms, Smart IT Networks, SmartTrain, and SmartPassenger, as<br />
well as other high-level plenary summits.<br />
TransRussia, 19-22 April 2016, RU/Moscow, www.transrussia.ru<br />
TransRussia is the number one exhibition for the transport & logistics industry in Russia & CIS region, featuring key players from the domestic<br />
and international supply chain. It is an ideal networking platform for international 2PL, 3PL/4PL companies, intermodal transport services<br />
providers, cargo owners, IT service companies, break-bulk and transport security suppliers.<br />
EurAsia Cargo Meet, 21-23 April 2016, RU/Moscow, www.eurasiacargomeet.com<br />
EurAsia Cargo Meet will be a development platform, optimized through a face2face scheduler, aimed at increasing business cooperation<br />
among Europe-wide freight forwarders, solution providers and alliances. The event will give forwarding companies the opportunity to<br />
showcase their portfolios, as well as to engage in business-friendly networking.<br />
Report: <strong>Baltic</strong> port market | Focus: TEN-T developments | Special: Break-bulk & project cargo<br />
Logistics 2016. Polish Logistics Congress, 18-20 May 2016, PL/Poznań, www.logistics.pl<br />
The event will focus on new trends, concepts & practices in the logistics business. The participants will debate on i.a. intermodal transport, innovations<br />
& purchases, IT systems, logistics in omni-channel trade, the role of warehouses in today's supply chains, as well as standards in logistics.<br />
TRANSBALTICA 2016, 18-20 May 2016, LT/Vilnus, www.litexpo.lt<br />
The event aims at presenting the newest market innovations but also challenges to encourage cooperation and relations between various transport<br />
businesses. Next year’s key topics will include intelligent transport systems, transport and logistics services as well as transport infrastructure.<br />
Breakbulk Europe 2016, 23-26 May 2016, BE/Antwerp, www.breakbulk.com<br />
The meeting will give break-bulk and project cargo professionals a possibility to not only see the latest products and services from around<br />
350 break-bulk focused exhibitors, but also to attend numerous seminars, conferences and workshops.<br />
Scandinavian Rail Development, 24 May 2016, SE/Stockholm, www.scandinavianraildevelopment.com<br />
Taking place on 24 May in Stockholm, the 2016 Scandinavian Rail Development conference will bring together strategists, financiers and innovators to<br />
present and discuss investment plans for the region's rail networks. With all major freight and passenger railway undertakings represented, alongside<br />
each of the infrastructure manufacturers, this is an unmissable conference for all rail professionals with an interest in the Scandinavian rail sector.<br />
Inter-TRANSPORT, 1-3 June 2016, UA/Odessa, www.expo-odessa.com<br />
This conference will focus on the Black Sea transport network, covering such issues as the development of intermodal container lines as well<br />
as rail & car ferry services, current trends in port and terminal development (particularly related to grain handlings), cargo handling & lifting<br />
technologies together with the latest in hydro-technical and coastal protection constructions building. The event will also touch upon<br />
transport educational topics, specifically recent advances in scientific research.<br />
Oil Terminal Management and Operations. Logistics for Traders, 1-3 June 2016, NL/Amsterdam,<br />
www.oilterminalmanagement.com<br />
The conference will be focused on crude & oil topics, such as supply & demand, business regulations, tariff rates, contango and storage benefits,<br />
quality and blending, maintenance, design & layout of oil terminals, freight and demurrage, contracts, as well as future innovations &<br />
technologies in oil & liquefied gases storage & transhipment.
BTJ Calendar of events<br />
BTJ 3/2016 (June-July)<br />
Issues distributed at:<br />
ESPO Conference 2016, 2-3 June 2016, IE/Dublin, www.espo.be<br />
The 2016’s edition of ESPO’s annual meeting will look into ways of improving the efficiency of maritime transport and seaports from different<br />
angles, incl. how to remove the remaining barriers in maritime transport, how to set the digital agenda for ports as well as how can<br />
harbours benefit from new trade agreements.<br />
Posidonia 2016, 6-10 June 2016, GR/Athens, www.posidonia-events.com<br />
As every second year, Posidonia will once again gather its participants for numerous know-how & networking conferences, seminars, technical<br />
workshops, all accompanied by exhibitions. This year's edition will focus on latest technologies in shipping and across ports (i.a. energy<br />
efficiency & gas applications in the maritime industry), as well as regulations, and trade.<br />
SIL2016, 7-9 June 2016, ES/Barcelona, www.silbcn.com<br />
The International Logistics & Material Handling Exhibition will gather representatives from transport & logistics, infrastructures & real estates,<br />
telematics, e-business, telecommunications, IT, warehousing, equipment and material handling, to present their latest solutions & innovations<br />
and to discuss related issues.<br />
TOC EUROPE, 14-16 June 2016, DE/Hamburg, www.tocevents-europe.com<br />
TOC Europe is a global meeting place for ports, terminals, shipping lines, third-party logistics providers as well as shippers. The exhibition<br />
part is a showcase for port and terminal technology & operations focusing on collaboration within the container supply chain, which will<br />
be given in 2016 a special premium status with lots of networking opportunities for supply chain stakeholders.<br />
5 th Global Rail Freight Conference, 22-24 June 2016, NL/Rotterdam, www.grfc2016.com<br />
The event, organized by the International Union of Railways (UIC), will put a spotlight on European rail corridors, multimodality, innovations,<br />
digitalization and smart rail logistics.<br />
Report: <strong>Baltic</strong> ro-ro & ferry market | Focus: <strong>Baltic</strong> shipyards | Special: New models of economy<br />
BPO Annual Conference 2016, 8-9 September 2016, FI/Helsinki, www.bpoports.com<br />
The <strong>Baltic</strong> Ports Organization invites all executives interested in improving the competitiveness of maritime transport in the <strong>Baltic</strong> Sea region,<br />
increasing the efficiency of ports & terminals, developing infrastructure and value-added services, as well as extending ashore and hinterland<br />
connections to its annual conference, this year held in the capital of Finland and hosted jointly by the port of Helsinki and HaminaKotka.<br />
InnoTrans 2016, 20-23 September 2016, DE/Berlin, www.innotrans.de<br />
InnoTrans is a trade fair for transport technology, divided into five segments: Technology, Infrastructure, Public <strong>Transport</strong>, Interiors, and Tunnel<br />
Construction. The exhibition part will showcase the latest on multiple unit trains, locomotives, freight vehicles, trams, and two-way vehicles.<br />
Trans Poland, 8-10 November 2016, PL/Warsaw, www.trans-poland.pl<br />
The 4 th edition of the Trans Poland trade fair will be devoted to showcasing the latest achievements in transport and infrastructure technologies,<br />
helping companies from the sea, road, air, intermodal, freight forwarding and storing sectors to boost their performance. The international<br />
exhibition & conference will also present up-to-date transport & logistics equipment as well as ICT, monitoring and navigational solutions.<br />
POLISH LOGISTICS CONGRESS<br />
The programme includes:<br />
» lectures by experts,<br />
» debates and thematic sessions,<br />
» 2016 Logistics Market exhibition,<br />
» visits to companies,<br />
» workshops for logistics experts,<br />
» Logistics Party,<br />
» ELA Research Day.<br />
Logistics in omni-channel trade | Intermodal transport | Physical Internet<br />
| Innovations in production | Purchases | Logistics services<br />
| Warehouse in today’s supply chains | IT systems | Standards in logistics<br />
Organisers:<br />
Contact: +48 61 850 49 30, 44<br />
1/2016 | <strong>Baltic</strong> <strong>Transport</strong> Journal | 7<br />
www.logistics.pl
On the roads<br />
R.I.P. fossil fuel world<br />
Paris, December 12 th , 2015<br />
The 21 st Conference of the Parties (COP)<br />
to the United Nations Framework Convention<br />
on Climate Change (UNFCCC)<br />
is widely recognized as a turning point<br />
in combating man-made global warming, and all<br />
the negative consequences it has, and will, set off.<br />
For the kingpins of the oil, gas and coal industries<br />
the Paris deal heralds what’s most probably<br />
their innermost nightmare – governments turning<br />
their backs on earth’s and water’s flammable<br />
insides, clients silently driving their electric vehicles<br />
all the more, and investors shaking their heads on<br />
backing the no return-on-investment businesses.<br />
However, I’ve got a hunch that the top dogs<br />
of the industry won’t easily lay down their arms.<br />
Forbes lists eight oil & gas companies in the Top<br />
50 of the world’s biggest public companies in<br />
2015, with pockets deep enough to campaign<br />
against the December agreement for years. The<br />
first part of the fight-or-flight response is deeply<br />
rooted in the oil & gas business. Cash is at stake,<br />
and we’re talking about mind-boggling sums<br />
of money, which ensures experiences that go<br />
beyond the dreams of an ordinary poor Joe. I’m<br />
also curious how the Organization of the Petroleum<br />
Exporting Countries (OPEC) will comply<br />
with the new reality. “The Stone Age didn’t end<br />
because we ran out of stones,” Saudi Oil Minister<br />
Yamani’s famous quote from the 1973 reads.<br />
And what about the rest of the world?<br />
Well, the Paris deal aims at curbing the global<br />
by Przemysław Myszka<br />
temperature increase below 2.0 centigrade by<br />
the end of this century, with high hopes of lowering<br />
it to 1.5°C. But even in a best case scenario,<br />
we’re still heading towards man-induced global<br />
warming, bringing about significant worldwide<br />
repercussions. Extreme weather phenomena,<br />
such as rising sea levels or droughts beyond<br />
belief, won’t start happening in 2050 or 2100,<br />
they are taking place right now, requiring<br />
immediate countermeasures.<br />
However, garden-of-Eden-hopes built on<br />
an undersigned paper put aside, the COP 21<br />
agreement differs considerably from both the<br />
US-China-we-don’t-care Kyoto Protocol, as well<br />
as the previous conferences in Copenhagen<br />
and Doha, two spectacular failures. In short,<br />
Paris brought together three spheres – governments<br />
(central and local, of rich and poor<br />
states), cash and intelligence holders (investors,<br />
IT, R&D, producers, private firms), and citizens<br />
(NGOs, and those moved individually by the<br />
imperative of doing the right thing). Who could<br />
stand against such a force?<br />
Well, time and the darker side of human<br />
nature can, and they could do it single-handedly.<br />
First, the Paris deal needs ratification of 55 countries<br />
representing at least 55% of global emissions.<br />
This should not be a problem provided the<br />
December momentum is kept, yet afterwards<br />
what the world needs is money to fuel the transition,<br />
coupled with accountability regarding<br />
Hieronymus Bosch – The Garden of Earthly Delights, photo: Wikimedia Commons<br />
spending, measures<br />
of individual,<br />
regional, national<br />
and global ecodevelopment,<br />
as<br />
well as simply –<br />
motivation. The<br />
latter will click<br />
into position itself<br />
once the feeling<br />
“It works!” grabs<br />
a firm economic<br />
foothold. Actually,<br />
as Citi’s report<br />
Energy Darwinism<br />
II. Why a Low<br />
Carbon Future<br />
Doesn’t Have to<br />
Cost the Earth<br />
clearly points<br />
it out, an ecochange<br />
positive<br />
outcome is almost a must. It will not only be<br />
cheaper than the business as usual scenario, but<br />
will provide much relief, from health benefits as<br />
road-caused air pollution will decrease, to relaxing<br />
tensions over fossil fuel deposits.<br />
But there’s also Maslow’s hierarchy of needs,<br />
where in order to pursue higher goals (worldwide<br />
cooperation on dealing with climate change for<br />
instance), one needs earlier to provide for basics,<br />
such as safety. In other words, nobody will care<br />
about the environment, if we’ll again start looking<br />
at each other at gunpoint. At the break of<br />
the 19 th and 20 th centuries, the Balkans were<br />
regarded as the powder keg of Europe. Today,<br />
we’re talking about several such TNTs, including<br />
those which have already exploded (the<br />
Syrian Civil War, the migrant crisis, war in Eastern<br />
Ukraine), as well as those dreadfully smouldering<br />
(China’s economy short of breath, strained<br />
relations between Riyadh and Tehran, the one<br />
of its kind communist monarchy of North Korea;<br />
let us also not forget about Wall Street, where<br />
Gordon Gekko blew up the world economy in<br />
the past – twice to be exact).<br />
As such, the United Nations have picked<br />
up a fierce battle – with decades of wasteful<br />
behaviour, against the interests of status quo<br />
beneficiaries, and with multiple other grave<br />
issues shattering the agenda.<br />
“One planet, one chance to get it right<br />
and we did it in Paris. We have made history<br />
together. It is an agreement of conviction. It is<br />
an agreement of solidarity with the most vulnerable.<br />
It is an agreement of long-term vision,<br />
for we have to turn this agreement into an<br />
engine of safe growth,” the words of Christiana<br />
Figueres, Executive Secretary of the UNFCCC,<br />
echoed back in December, 2015. Everyone can<br />
do something for the environment – to its benefit<br />
or deterioration. What’s your pick? <br />
14 | <strong>Baltic</strong> <strong>Transport</strong> Journal | 1/2016
Report<br />
<strong>Baltic</strong> transport 2015 highlights<br />
Report<br />
Photo: Kacper Kowalski/Port of Gdańsk Athority SA<br />
A (rather) quiet year<br />
by Przemysław Myszka<br />
The past 12 months did not exactly abound with mind-blowing events. However, apart from fears brewed<br />
in the SECA pot (which low oil prices put a lid on pretty fast), nobody really expected any spectacular<br />
ribbon-cutting ceremonies, game changers or horrors to suddenly emerge across the <strong>Baltic</strong> Sea in 2015.<br />
But it would be false to say that the region drifted through last year without its fair share of developments,<br />
like the EUR 700 mln worth LNG terminal in Świnoujście, as well as aches and pains, particularly<br />
containers dying out in thousands due to the ongoing economic war between the West and Russia.<br />
Traditionally, we have chosen<br />
several affairs that stand out<br />
from the crowd, both in positive<br />
and negative ways. Since we<br />
devoted the 6/2015 issue to assessing how<br />
The container slaughterhouse<br />
Back in 2013, the Port of St. Petersburg<br />
went over its 2012 container peak of 2.52<br />
mln TEU, short of just over 10 thou.<br />
20-footers. In 2014, the harbour’s box<br />
traffic contracted by almost 6% year-onyear<br />
to 2.37 mln TEU. Last year, St. Petersburg<br />
lost 27.8% yoy of its container<br />
volumes, plunging in total to slightly over<br />
1.71 mln TEU. In addition, the Kaliningrad-St.<br />
Petersburg range saw nearly 964<br />
thou. TEU vanish into thin air, a drop<br />
Photo: Port of Gothenburg<br />
the abovementioned Sulphur Emission<br />
Control Area (SECA) has impacted our<br />
region since its hatching out on January<br />
1 st , 2015, as well as the 2/2015 issue to<br />
the new TEN-T map and the place of the<br />
by 25% yoy. In other words, a box carnage.<br />
Erik Laidvee, Chairman of the Board of<br />
Transiidikeskuse, operator of the Muuga<br />
Container Terminal in Estonia (-20% yoy<br />
in container handlings over 2015), came<br />
straight to the point in one press release,<br />
“The economic war caused by the geopolitical<br />
situation has decreased the container<br />
turnover in the ports of the <strong>Baltic</strong> Sea by 20-<br />
30%. We are competing with other ports for<br />
every container and tonne.” For Muuga CT<br />
<strong>Baltic</strong> on it, we’re just curtly mentioning<br />
them here for the sake of correctness (and<br />
lower paper usage). That said, let us then<br />
target other major <strong>Baltic</strong> transport 2015<br />
highlights.<br />
Tab. 1. Top 10 <strong>Baltic</strong> container seaports in 2015<br />
Port<br />
TEU<br />
[thou.]<br />
2015/2014<br />
[%]<br />
St. Petersburg 1,715.1 -27.8%<br />
Gdańsk 1,091.2 -10.0%<br />
Gothenburg 820.0 -2.0%<br />
Gdynia 684.8 -19.4%<br />
HaminaKotka 553.4 -3.4%<br />
Aarhus 445.0 +5.0%<br />
Helsinki 430.4 +7.5%<br />
Klaipėda 392.7 -12.8%<br />
Riga 355.2 -8.3%<br />
Rauma 263.0 -5.5%<br />
this even means stuffing containers with<br />
Estonian dry bulk goods (e.g. grains) to<br />
keep afloat when politicians clash.<br />
The ongoing tug-of-war (EU sanctions on<br />
Russia prolonged till July’s end just before<br />
last year’s holidays) affects each and every<br />
1/2016 | <strong>Baltic</strong> <strong>Transport</strong> Journal | 33
Focus<br />
Warehousing<br />
Focus<br />
Photo: Amazon<br />
Transforming warehouses and distribution centres<br />
Cost-to-profit<br />
by Katarzyna Chmielewska<br />
Warehouses and distribution centres (DC) are changing as IT and operational personnel are placing increased<br />
focus on optimizing supply chain management across the manufacturing, retail, wholesale, and third party<br />
logistics markets. In the post-2008 economic downturn world, increasing in volume and throughput are insufficient<br />
steps to remain profitable and competitive. Thus, managers are faced with new business realities that<br />
drive them to reimagine warehouse and DC operations, and the role these spaces play in the balance sheet.<br />
It has always been critical for supply<br />
chain management to ensure that<br />
storage and distribution facilities<br />
function as efficiently as possible,<br />
and that they generate the highest level<br />
of satisfaction at the lowest cost.<br />
Nevertheless, these places have traditionally<br />
been considered cost centres. Still, it is<br />
now commonly understood that such mindset<br />
is not conducive to meeting the current<br />
and projected business demands. Instead,<br />
it is vital to “convert warehouse and distribution<br />
centres into assets of competitive<br />
differentiation,” Motorola’s report From<br />
Cost Center to Growth Center: Warehousing<br />
2018 reads.<br />
Assets of competitive differentiation<br />
The facilities in question are facing a<br />
number of economic, logistical, and regulatory<br />
challenges. They shape the direction<br />
for the projected changes that are dominated<br />
by two major themes, namely automation<br />
and a reduction in labour costs<br />
(specifically, a reduction or elimination<br />
of non-productive labour).<br />
The need for more efficient and effective<br />
labour management is also precipitated<br />
by such issues as creating customer<br />
satisfaction, and re-shoring.<br />
Consequently, further growth in the size<br />
and number of warehouses will require highspeed<br />
mobile communications everywhere<br />
on and off the floor. Additionally, customer<br />
demand for personalization leads to increases<br />
in the number of stock keeping units (SKUs),<br />
which results in an even greater need for<br />
inventory visibility, accuracy, and efficiency.<br />
1/2016 | <strong>Baltic</strong> <strong>Transport</strong> Journal | 43
Editorial<br />
Dear Readers,<br />
First and foremost, welcome to the New Year of 2016. Do you have any resolutions?<br />
I, traditionally, don’t have any, as I’m not a big fan of believing in magical powersenchanted<br />
dates. However, I read some time ago that New Year pledges actually do<br />
work provided that one has spent a sufficient amount of time mastering a proper<br />
strategy and tactics for accomplishing the given goal in advance… But arduously planning<br />
a change does not sound so romantic like making a champagne-infused vow while counting<br />
down from ten to confetti-kissing-firecrackers-chaos on e.g. Times Square.<br />
Humble as it is, we’re sticking to delivering throughout the year the issues of our journal<br />
together with other publications in the best possible way for us.<br />
With the 1/2016 edition, we’re starting off with a new column entitled Technology;<br />
therefore, I strongly recommend its premiere piece authored by Fraunhofer CML’s Ole John<br />
and Anisa Rizvanolli on the Sea Traffic Management Validation Project, a follow-up to the<br />
two MONALISA initiatives.<br />
Alike in previous years, the Report is devoted to the <strong>Baltic</strong> Sea region’s top transport & logistics<br />
highlights of the past year. The Focus section is dedicated to warehousing, yet we’re tackling the<br />
topic from a future-oriented perspective; Katarzyna Chmielewska shows how warehouses and<br />
distribution centres are undergoing a cost-to-profit transformation, while Bartosz Dąbrowski’s piece<br />
looks into the connections between warehousing & logistics and the so-called Internet of Things.<br />
Four Seasons – Alfons Mucha; photo: Wikimedia Commons<br />
In general, just as I mentioned in the 5/2015 issue, we’ll be dealing a lot with future trends.<br />
Charles Moret and Andy Lane, in a continuation of their article on port performance &<br />
productivity from the very same edition, are debunking a few box myths, pinpointing what is<br />
needed for container terminals to really lift their game, already in our day and in years to come<br />
(stay tuned, because we’ll hear more from Charles and Andy this year). In One stop LNG shop,<br />
Stig Anders Hagen shares his thoughts on why versatility is required in order for LNG to become<br />
more competitive on the bunkering market. MGI’s Marie Pavesio, on the other hand, writes why<br />
intelligent freight needs to go beyond today’s port & cargo community systems. Last but not least<br />
in this regard, we put a spotlight on the BSR’s economies and how they’ll perform in 2016-2017.<br />
Finally, I would like our two interviews to grab your attention. First, in the Maritime<br />
section, we talk with the Port of Helsinki’s Managing Director Kimmo Mäki about the port’s<br />
positive results in 2015, something that seems quite rare on the Eastern shores of the <strong>Baltic</strong>.<br />
In the Logistics column, in turn, we asked OT Logistics’ President of the Board, Zbigniew<br />
Nowik, about the company’s strategy standing behind the recent strong push towards the<br />
sea, both the <strong>Baltic</strong> and North Adriatic.<br />
Naturally, you’ll find much more inside, including one completely out of the blue <strong>Transport</strong><br />
miscellany entry, where we combine 17 th century stone handlings of capers in Gdańsk with<br />
magical wind-triggering ropes from Finland (it’s most probably the oddest market sms in<br />
our history, but you haven’t heard the last of us!).<br />
I wish you a pleasant reading!<br />
Przemysław Myszka<br />
<strong>Baltic</strong> <strong>Transport</strong> Journal<br />
Publisher<br />
<strong>Baltic</strong> Press sp. z o.o.<br />
Address: ul. Pułaskiego 8<br />
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BOGDAN OŁDAKOWSKI<br />
Editor-in-Chief<br />
PRZEMYSŁAW MYSZKA<br />
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Executive Editor<br />
MAREK BŁUŚ<br />
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Assistant Editor<br />
MACIEJ KNITER<br />
maciej@baltictransportjournal.com<br />
Proofreading Editor<br />
ALISON NISSEN<br />
Contributing writers<br />
Katarzyna Chmielewska,<br />
Bartosz Dąbrowski, Stig Anders Hagen,<br />
Ole John, Andy Lane, Charles Moret,<br />
Lucas Møller, Marie Pavesio,<br />
Anisa Rizvanolli, Peregrine Storrs-Fox<br />
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