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Tag: Shipping

Georgian seaport Poti officially opens

Posted on by Keith McKinley

Through the joint effort of Pace Group and the US International Development Finance Corporation (DFC), the construction of a new seaport in Poti has successfully completed.

The Poti New Sea Port’s official opening ceremony was attended by Georgian Prime Minister Irakli Garibashvili, Minister of Economy and Sustainable Development Natia Turnava, US Ambassador to Georgia Kelly Degnan, members of Georgia’s Cabinet and Parliament, and representatives of the diplomatic corps and maritime industry. The guests were addressed by Irakli Garibashvili, Prime Minister of Georgia.

“One of our Government’s key goals and priorities is to shape Georgia into a regional hub tapping into our location and potential. Let me single out the engagement of our key strategic partner, the United States of America, in this project, namely US$50m in financing allocated by the International Development Finance Corporation (DFC), another demonstration of Georgia’s being an attractive country for foreign investments, one with the largest transit and transport potential in the region,” the prime minister stated.

Irakli Garibashvili thanked Pace Group’s President Ioseb Dolidze and each employee of the company for successfully implementing a project of this scope, and for exhibiting remarkable social responsibility, especially in light of the pandemic, by creating hundreds of new jobs.

The Poti New Sea Port, with its value amounting to US$120m, is one of the largest among Georgia’s ongoing maritime projects. Notably, the financing allocated by the US International Development Finance Corporation is the organisation’s single largest investment into a project in the region.

“I’m delighted that the United States, through the Development Finance Corporation, has played a key role in the Pace Terminal’s construction. It is a demonstration of our continued commitment to Georgia’s prosperity and to the Georgian people. Georgia’s investments in becoming the safe, responsible transport partner come at an opportune time. These investments further Georgia’s ability to make global and regional connections when the world is looking for alternative routes and supply chains,” US Ambassador to Georgia Kelly Degnan said in her speech.

According to Degnan, this port is a key link between prosperity and security, and the United States is committed to assisting Georgia, a strategic partner, in developing port infrastructure. “Our mutual interests are served in an environment that respects freedom of navigation, access to waterways, the rule of law, and national sovereignty. This port is part of the physical lifeline connecting Georgia to Europe. It is also a symbol of Georgia’s continued Euro-Atlantic aspirations,” Degnan added.

A total of US$93m has been invested in the construction of the new seaport, with large hydrotechnical facilities and modern port infrastructure built, such as:

  • A 260-meter berth
  • Fully reconstructed breakwater structures
  • 1.5 million cubic meters of soil removed from the Poti New Port harbour to further increase its depth to 13 meters
  • Closed warehouses with a capacity of 50,000t, equipped with fully automated reloading systems manufactured in Europe
  • Open storage areas amounting to 6ha
  • Two new portable cranes exclusively manufactured and installed at the seaport, each with a load capacity of 100t

The project’s subsequent expansions, an endeavour valued at an additional US$30m, involves the construction of a new 230m deep-water (13m) berth. Modern port machinery and devices will be installed, such as a conveyor system and a ship-loader.

“This port symbolises Georgia’s imposing economic transformation since regaining independence in 1991. The  Poti New Sea Port will create new jobs and spur economic growth, also empowering Georgia’s positions as a strategic and transit country linking the Caucasus and Central Asia to Europe, also bolstering trade. The Poti New Sea Port will also continue the years-long productive partnership between the United States of America and Georgia,” Kenneth Angell, Managing Director of the US International Development Finance Corporation (DFC), emphasised in his video address.

The berth and new port’s infrastructure allow for serving up to 50,000Mt cargo capacity bulk carrier and container vessels. The port will handle bulk and break bulk cargos, as well as containers.

After the project’s finalisation, the capacity of Georgia’s unified seaport infrastructure will increase by 3.5t. These opportunities and the port’s importance are discussed by Albright Stonebridge Group’s Chair and former Secretary of State Madeleine Albright in her letter celebrating the opening of the Poti New Sea Port.

“The Poti New Sea Port project offers greater economic opportunities to the residents of Poti, to Georgia, and every Black Sea and Caspian state. By transporting 3,000,000t of cargo via the seaport, everyone’s a winner. The United States of America is convinced that every country has the right to decide its role in relations with the rest of the world. But we also know that every country is entitled to real opportunities to trade in various markets. This instrument is part of putting to use trade and choice potential – this aspect imparting special importance to it not only from the point of view of trade and commerce, but also making a difference for all of us striving to ensure a better life for our families and countries,” Madeleine Albright’s letter reads.

The Poti New Sea Port will give a tremendous boost to the country’s port capacity and transit potential, also offering new opportunities for redirecting new cargos to Georgia’s transport corridors.

 

Haropa Port celebrates “positive” 2021

Posted on by Keith McKinley

A merger year and one with a strong recovery in activity: 2021 was an unprecedented year for Haropa Port, registering growth in maritime traffic of 12% – the Northern Range’s strongest rate – surpassing three million TEU for the first time and enhancing its attractiveness for logistics and industrial operations.

In order to address its challenges, the port complex  – comprising the combined ports of Le Havre, Rouen and Paris – will be applying a €256m investment in 2022, of which an increasing share will be allocated to the energy transition.

Since the official merger in June 2021, Haropa Port has finalised its system of governance, adopted a tariff policy shared across all three ports and defined its first investment programme, whose scale is unprecedented; alongside this, its strategic project is currently going through the public consultation process.

“The good results announced by Haropa Port in this first year after the merger confirm the relevance of the model which became official on 1st June (2021),” said Daniel Havis, Chair, Haropa Port Supervisory Board. “Recent announcements by various partners and the extent of their investments underline the fact that the port complex now has the critical size and the right working methods to make sustained improvements to the port’s competitiveness and results. Haropa Port is thus confirming its position as the leading French port and consolidating its ranking among Northern European ports.”

Maritime traffic up by 12%

In 2021, maritime traffic registered an increase of 12%, to 84Mt, boosted by a rise in containerised goods flows and liquid bulk:

  • For the first time in their history, the Seine Axis ports broke through the symbolic barrier of 3m TEU (achieving 3.07m TEU), with growth of 28%. Inland traffic saw a major increase of 15% while transhipments expanded spectacularly (79%), establishing a new record at 843,000 TEU.
  • Liquid bulk ended the year up 6% (39Mt), buoyed by crude oil traffic, which increased by 16% (to 15.4Mt).
  • Dry bulk fell back by 4% (at 14Mt) compared with 2020, a year that featured an exceptional cereals campaign. Cereals registered a fall of 13% (7.6Mt) but this figure is 5% higher than the 2015-2019 five-year average (7.3Mt). Imports of aggregates progressed by 25.5%, underpinned by the many construction sites along the Seine Axis.
  • Ro-ro progressed by 14% (294,000 vehicles), returning to a level close to pre-pandemic figures.
  • A new weekly freight service, a direct consequence of Brexit, was opened between Le Havre and Ireland.
  • Cruises ended the year on a positive note with 49 port calls and 45,500 passengers (+100%).

River traffic increased by 4% in the Greater Paris area, supported by construction industry activity.

Modal share remained unchanged at 12%: Haropa Port has defined the development of multimodality as a core priority.

New industrial and logistics operations

In 2021, numerous prospective industrial and logistics customers of the port entered bids in response to calls for proposals issued by the three ports (multi-energy service stations, buildings 1 & 2 at Austerlitz port, a 52-hectare industrial site in Rouen, among others).

In 2022, this very robust commercial dynamic will be maintained with the issuance of further calls for proposals: in Le Havre, the multibulk terminal, logistics parks PLPN 1/PLPN 2 and the Grand canal site; in Rouen, RVSL Upstream (Rouen Vallée de Seine Logistique / Rouen Seine Valley Logistics Park); development of plots at Gennevilliers (0.7 hectares) and Bonneuil (2.7 hectares).

In 2021, investment by private-sector actors progressed by over €50m (€350m vs. €246m in 2020), and will rise further to €550m in 2022, reflecting the attractiveness of Haropa Port and the confidence felt by investors.

Investment in sustainable development

Although 2021 was an exceptional year for investment for Haropa Port (€197m), it is nevertheless preparing to address a number of major challenges in 2022: ensuring that its high level of activity is maintained over the long term, continuing its development in the direction of a new and sustainable business model, and supporting the energy transition.

Investment in 2022 is commensurate with these ambitious goals, and is provisionally budgeted at €256m (between 2015 and 2019, the annual average was €95m); 16% of investment is allocated to supporting the energy transition, compared with 11.8% in 2021, making Haropa Port France’s leading port for the energy transition (quayside electrification, electricity service points, carbon capture being notable examples).

Development of port capacity and multimodality also benefit from high levels of investment (notably PSMO, development and modernisation of the Radicatel terminal, Port 2000 extension).

“In the current unprecedented global economic context, Haropa Port’s overall results in 2021 have turned out to be positive, with one historic record and some very good results in a range of sectors,” concluded Stéphane Raison, CEO, Chair of Haropa Port Management Board. “The confidence felt by private-sector industrial and logistics investors, shipowners and stevedores is a sure sign of the future. In this connection, the project conducted by T-I-L at Le Havre’s terminals is particularly promising.

“However, we are aware of the scale of the task ahead in a context in which there is an unavoidable need to transform ports’ business models, historically based on recipes linked to fossil fuels. This transformation must be conducted with a combination of ecological transition and competitive performance, and that is our challenge.”

Unifeeder uses carbon-neutral towage services

Posted on by Keith McKinley

DP World-owned Unifeeder has taken another step in fast-tracking its green agenda by deploying a carbon-neutral towage service on London’s River Thames.

The EcoTow service, developed by towage operator Svitzer, has seen its whole fleet of 10 towage tugs converted from marine fuel oil to sustainable Hydrogenated Vegetable Oil (HVO), which reduces towage CO2 emissions by approximately 90%.

Unifeeder will initially deploy Svitzer’s EcoTow service in London for all vessels which require towage services on the River Thames. Unifeeder has approximately 100 vessel assists in London annually.

Michael Bonde, Chief Operations Officer for Network & Operations at Unifeeder, said: “This is a great example of what can be achieved using new fuel technology and we are proud to be deploying this innovative service to reduce carbon emissions.

“Using Svitzer’s EcoTow service complements our environmental initiatives across Europe, such as our investment in more efficient rail and barge inland services, as well as our ongoing sustainability ambitions at our European terminals.”

This latest development follows last year’s launch of Unifeeder’s Actual Emission Tracker, a tool that allows for users to calculate greenhouse gas emissions at the specific Twenty-foot Equivalent Units (TEU) level, providing companies with further insight into the carbon impact of their activity.

The Ecotow product exclusively uses sustainable second-generation biofuels, which are fuels produced from waste material such as used cooking oil as feedstocks and are certified by ISSC or RSB.

Relative to marine diesel, these biofuels reduce carbon emissions by 100% on a tank-to-wake basis and approximately 90% on a well-to-tank basis.

Tanger Med reports container traffic record

Posted on by Keith McKinley

7,173,870 TEU of containers were handled in Tanger Med port complex, up by 24% compared to 2020. This traffic results from the steady ramp-up of Tanger Med 2 port after the successive commissioning of the terminals TC4 in 2019 and TC3 in 2021.

This result confirms the leadership of Tanger Med in the Mediterranean and Africa, and consolidates the position of this major hub for global maritime alliances led respectively by Maersk Line, CMA CGM and Hapag Lloyd.

101,054,713 tons of goods were handled for the first time in Tanger Med port complex, up by 25% compared to 2020. Indeed, the tonnage handled by Tanger Med port complex represents more than 50% of the overall tonnage handled by all Moroccan ports.

The port complex handled 407,459 trucks in 2021, up by 14% compared to 2020. This traffic was mainly driven by the resumption of industrial exports as well as by the good performance of the agricultural season and agro-industrial exports.

429,509 new vehicles were handled at the two vehicle terminals of Tanger Med port in 2021, an increase of 20% compared to the previous year. The traffic mainly includes:

  • 278,651 Renault vehicles including 250,532 for export
  • A rise in exports of PSA vehicles: 100,030 cars exported

Liquid bulk traffic has increased by 9% compared to 2020. It recorded a total traffic of 8,744,900 tons of hydrocarbons handled. Solid bulk traffic recorded a total of 342,804 tons processed, an increase of 13% compared to 2020 driven by the traffic of steel coils, wind blades and grain. 587,320 passengers crossed Tanger Med Port in 2021, down by 14% from 2020. 10,902 vessels called at Tanger Med in 2021, up by 12% from 2020. Over the past year, the port complex has welcomed nearly 929 mega-ships (over 290m in size).

These performances accomplished during 2021 affirm the position of the port complex as a major strategic hub but also its key role as a privileged logistics platform serving the national logistic competitiveness.

The achievements are the result of the continued collaboration of all the partners of Tanger Med port complex. Particularly ship-owners, concessionaires, local authorities and administrations.

BIFA joins calls to investigate container market

Posted on by Keith McKinley

The British International Freight Association (BIFA) has written to the UK government  asking it to investigate the state of competition within the current deep sea container shipping market.

The UK’s main trade association for freight forwarding and logistics companies says that its members are concerned that certain practices undertaken by the principal container shipping lines, as well as easements and exemptions provided to them under competition law, are distorting the operations of the free market to the detriment of international trade.

In a letter to Robert Courts MP, Parliamentary Under Secretary of State at the Department for Transport, BIFA‘s Director General Robert Keen expresses the trade association’s concern that during a period of well-documented chaos within the container shipping sector, commercial power is becoming increasingly concentrated, resulting in diminished market choice and competition, and distorted market conditions.

Keen said: “BIFA members fully accept that a free market economy is open to all, but are increasingly concerned that the activities of the container shipping lines, and the exemptions from legislation from which they benefit, are distorting the operations of that market to the shipping lines’ advantage, whilst adversely and unfairly affecting their customers, especially freight forwarders and SME businesses.

“The facts speak for themselves. During a period that has seen EU block exemption regulations carried forward into UK law, there has been huge market consolidation.

“In 2015, there were 27 major container shipping lines carrying global containerised trade, with the largest having a 15.3% market share. Today, there are 15 shipping lines, organised into three major alliances carrying that trade, with some analysts observing that the market share of a single alliance on certain key routes could be over 40%.

“The pandemic has highlighted and accelerated this development, which has also contributed to dreadful service levels, and hugely inflated rates, with carriers allocating vessels to the most profitable routes with little regard to the needs of their customers.

“Drewry recently issued a profit forecast of more than US$150bn for 2021 for the main container shipping lines for which financial results are available.

“To put that into perspective, this is more than has been achieved in the previous 20 years combined, and many BIFA members consider it to be a case of blatant profiteering.”

BIFA is joining a growing number of organisations, including CLECAT and FIATA, the US Federal Maritime Commission, and the Australian Productivity Commission, in calling for governments at a national and pan-national level to give careful consideration to the evolving business arrangements in the container shipping market to see whether they are in breach of competition law.

 

 

MSC bids €5.7bn for Bolloré’s Africa arm

Posted on by Keith McKinley

The Bolloré Group has received an offer from the MSC Group, a major player in container transport and logistics, to acquire 100% of Bolloré Africa Logistics, comprising all of the Bolloré Group’s transport and logistics activities in Africa, on the basis of an enterprise value, net of minority interests, of €5.7bn.

The Bolloré Group has granted the MSC Group an exclusivity until 31st March 2022 to enable it to conduct additional due diligence and contractual negotiations.

Completion of the sale would require the approval of regulatory and competition authorities, as well as of certain counterparties of Bolloré Africa Logistics.

Port of Felixstowe tops 100 million TEU

Posted on by Keith McKinley

Port of Felixstowe has passed the 100 million TEU mark since it handled its first container in the 1960s.

The 100th million TEU was loaded at Berth 8, the port’s newest facility and one of four berths at the UK’S largest container port capable of handling the world’s largest container ships.

Commenting at a ceremony to mark the occasion, UK Maritime Minister Robert Courts MP said: “The tens of thousands of maritime workers who keep our critical goods and supplies moving are the backbone of our freight sector, and kept this country’s supplies moving throughout the pandemic.

“Congratulations to the Port of Felixstowe on the 100 millionth TEU being loaded, which is a landmark moment for the UK’s busiest container port.”

Chris Lewis, Chief Executive Officer at the Port of Felixstowe, said: “The Port of Felixstowe has been setting the benchmark for UK container ports since we handled the first Sealand containers in what was then the Dock Basin in 1966. We followed that with the first operational container terminal the following year and have been leading the way ever since.”

Clemence Cheng, Managing Director, Hutchison Ports Europe, added: “Looking to the future we are committed to continual investment, upgrading existing facilities, building new infrastructure and constantly improving systems, equipment and the way we work to deliver the level of service our customers require.

“As the number of ultra-large container ships increases we are continuing to invest in the facilities they require. Berth 7 has been deepened to 16.5m and next year we will increase Berth 6 to the same depth and future-proof Berths 8&9 by increasing them to 18m, further enhancing our ability to work the largest container ships afloat.

“At the same time we will be driving forward our agenda to ensure we do this whilst cutting our environmental impact and working towards net-zero emissions.”

The work to deepen berths complements work being undertaken by Harwich Haven Authority to deepen the port’s main navigation channel from 14.5m to 16.0m. The additional depth in the harbour and seaward approaches will provide unrivalled deep-water access for the growing numbers of super-sized vessels that serve UK trade.

Congestion is not just for Christmas

Posted on by Keith McKinley

Shippers across the globe might have to battle the effects of supply chain congestion and record high ocean freight rates for some time to come. The question remains – when will they get relief?

The wave of congestion that is sweeping through global supply chains delaying deliveries of seasonal goods and essential commodities, stranding many shippers between meeting impossible delivery deadlines while paying record shipping rates is not set to subside anytime soon

“This is proving to be the ‘peak season like no other’, just as we predicted,” says the Global Shippers Forum, the voice of cargo owners in international trade.

Speaking at a High-Level Maritime Dialogue, hosted recently by FIATA, James Hookham, GSF’s Director, highlighted the challenges that importers and exporters face in getting their goods on shelves and in warehouses for the winter holiday season. They are struggling with historically poor levels of service from shipping lines, ports and terminals, and inland logistics providers, yet paying the highest shipping rates and surcharges seen for decades.

Hookham said: “Global shippers are riding a tidal wave of congestion this peak season that started in exporting countries and is now arriving on the shores of importers and sweeping inland. First, we had lockdowns in Chinese ports, then an inexplicable shortage of empty containers, then the ships suddenly all maxed out and slots were like gold dust (and costing as much). Now our goods are queuing to get into ports, waiting for a crane to unload the box and then for a driver to move it inland to where we need it. It’s been a tough ride and it’s not yet over, but most of us are still standing, although, sadly, there will be ‘wipe-outs’.

“The most vulnerable businesses are the importers and distributors fighting to meet delivery deadlines, set by their retailer customers.  They simply cannot predict when the goods they have paid so much to have transported actually will be available. Not only have they blown their logistics budgets this year, but they are facing stiff penalty charges for late delivery, and possible loss of future contracts. These are the businesses that are the victims of the maritime industry’s collective struggle to manage the ‘Great Shipping Crisis of 2021’.

“But with most deliveries expected to land in the next few weeks, and Thanksgiving and Christmas probably safe for this year, big questions remain – Will this congestion continue well into next year. Will tight market conditions persist through 2022? Or will consumer demand slacken and will capacity and resilience improve service levels prices become more predictable?”

To continue the surfing analogy, was 2021 a freak wave or a permanent rise in sea level?

“Just about every shipping line is predicting the latter,” continued Hookham. “And why wouldn’t they when they are collectively expecting to turn profits exceeding $150bn this year? But there is good reason to query the hype of continued congestion.

“The expectations for consumer inflation levels in most developed countries are hardening and most central banks are expected to increase interest rates next year. That won’t affect retail prices immediately, but it could trigger a rapid change in consumer sentiment that means the ‘click-fest’ of on-line shopping that has reportedly fuelled the surge in shipping demand for the past 18 months could be extinguished as quickly as it ignited.

“Sure, maritime congestion will take some time to unwind, but if the ‘Great Shipping Crisis of 2021’ proves to be just that, then the speed at which shipping rates shadow the drop in demand will be a critical indicator of the responsiveness and competitiveness of this market.”

Hookham concluded by reflecting on the fact that amongst its global membership, GSF now includes operators of container ships.

“There is, of course, that small heroic band of shippers out there who made the trip to the Dark Side during 2021 and hired their own vessels to move their own goods, because shipping line predictability had got so bad, and rates so out of kilter with actual operating costs. I don’t know what their charter terms are, or what their experiences have been, but I expect they will soon be needing to decide whether to ‘give up the hobby’ or make it a part of their routine operations. These endeavours have been dismissed as an aberration by most shipping industry observers, but it tells you something when a few guys in the audience think they can whistle a better tune than the full orchestra!”

 

The digital ecosystem in European ports

Posted on by Keith McKinley

Technological changes are affecting the port and logistics industries. New IT systems have been introduced at the Rotterdam and Antwerp seaports, where containers are released based on digital identity verification.

Containers have traditionally been released by shipowners to recipients using paperwork and signatures. Now the process can be done electronically. The Secure Container Release (SCR) system is now used in the Rotterdam seaport in the Netherlands. Using digital blockchain tokens, the release of containers takes place without the use of a PIN code while maintaining security and identity control through an ID wallet.

From 1st July 2021, a digital, integrated solution for releasing containers was also implemented in Antwerp, Belgium. The Certified Pick-up (CPu) platform has abandoned PIN codes in favour of verifying identity with Alfapass and finger scans. The process ensures transparent importation operations for containers as they are unloaded from seagoing vessels and sent on by road, rail, or inland waterway to the final recipient.

“In June, AsstrA’s European Container Division team underwent training with the port of Antwerp. If a logistics company doesn’t have its own operating system dedicated to maritime transport, then it can use the port’s Internet platform. In the future, we plan to launch our own sea transport software system that can be integrated with the port’s,” explains Marta Mikuszewska-Wasiak (pictured), Head of Sea Freight for Western Europe at AsstrA’s Warsaw office.

Europe’s top two seaports are in Rotterdam and Antwerp. In the first quarter of 2021, Rotterdam transshipments amounted to 114.8 million tons of cargo, a 3% increase over the previous year. At the same time, Antwerp recorded a 2.3% increase in TEU container handling and 0.6% more cargo tonnage.

The new technological solutions are intended to increase efficiency and safety for the parties involved in the container importation process. For shipping companies registered in either port’s platform, shipment release is performed electronically for the container carrier. Subcontractors receive information about fee payments, port exemptions, customs issues, and updates about loads’ readiness to be collected.

“More efficient container releases at the port mean deliveries are faster and easier. Thanks to this, we are able to inform customers faster about customs issues, e.g. whether a container has been selected for inspection or scanning. The platform uses a green/red light to show how the overall logistics chain is proceeding,” summarises Marta Mikuszewska-Wasiak.

GEFCO transports crane from Kazakhstan to Belgium

Posted on by Keith McKinley

GEFCO, a global multimodal supply-chain expert, has completed an industrial project cargo solution to deliver one of the world’s largest cranes by ocean freight charter for a leading provider of crane rental services, heavy lifting equipment and engineered transport.

The project, delivered by GEFCO Air & Sea, saw the team transport the 4,000t, 8,000cbm disassembled crane by ocean freight from Kazakhstan to Belgium.

GEFCO chartered a newly-built tween-deck, innovative vessel, the MV Ella, which enabled the crane to be transported in one single shipment across both river and sea. GEFCO worked closely with the customer on planning to meet the complex stowage and lashing requirements, as well as the customs process. The delivery was completed in Antwerp in September, after 32 days of travel.

Vincent Habryn, Global Head of Industrial Project Cargo, GEFCO Air & Sea, said: “This project was an excellent showcase of our ability to provide a seamless and efficient Industrial Project Cargo service, despite a number of challenges we guaranteed the safe delivery across both river and sea, for our valued customer.

“We are grateful as ever for the commitment of our local teams and the trust and support of our partners.”

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