Port & Shipping News 31/15

1 Port & Shipping News 31/15 (27 Jul – 02 Aug 2015)

Uwe Breitling - Port, Transport & Training Consultant [email protected]

Port & Shipping News 31/15 27 Jul – 02 Aug 2015

If the Panama Canal gets a rival - trench warfare in Nicaragua ................. 4

East Africa: Military surveillance keeps Somali pirates at bay .................... 6

Shipping cycles – a chess game you don’t want to lose .............................. 7

U.S.: UPS buys Coyote Logistics for $1.8 billion.......................................... 9

U.S.: MARAD to fund hydrogen-powered-ferry project ............................. 10

Singapore: NOL’s new fleet may lure buyers despite shipping slump ....... 11

Hurricanes: New insights on intensity and pollution transport ................. 12

México: Manzanillo becomes first fully electrified container

terminal in the Americas .......................................................................... 14

UK: Peel Ports secures £40 million development at Port Wirral ............... 14

Shipping emissions: Mountain high, ocean deep (part one) ..................... 16

Fatter ships to come in the race to rule shrinking trade routes ................ 18

European Commission starts work on MRV implementation .................... 19

South Africa: Wallenius Wilhelmsen Logistics pays $7.5 million

fine for price fixing ................................................................................... 20

Australia / Indonesia: ITF set to fight Hutchinson Port Holdings ............. 20

Shipbreaking: Cleaning up graveyards of steel......................................... 21

NGO Shipbreaking Platform issues South Asia Quarterly Update ............. 24

Concession agreements and market entry in the container

terminal industry ...................................................................................... 25

Canada invests in safety of Arctic shipping .............................................. 26

New book highlights the hidden connection between food waste,

hunger and climate change ...................................................................... 27

mailto:[email protected]



Brazil: Plans to develop $447 million Pontal Port project at Paranaguá ... 28

Suez Canal expansion impact questioned ................................................. 29

New Suez Canal complete, revenues expected to triple by 2023 .............. 31

U.S.: Matson to pay USD 15.4 million for Hawaii molasses spill................ 31

U.S. New Georgia inland port to serve the South ...................................... 32

Canada: Port of Trois-Rivières embarks on major expansion ................... 33

U.S.: Portland icebreaker protesters cleared after judge fines

Greenpeace $2,500 an hour ..................................................................... 34

Shell to cut 6,500 jobs as prolonged market downturn looms .................. 36

Indonesia imposing oil export ban ........................................................... 37

India plans to overhaul rivers for shipping ............................................... 38

ClassNK releases Guidelines for CNG Carriers .......................................... 41

Brazil: Port of Santos’ boom-to-bust is window into what went

wrong in the country ................................................................................ 42

Uruguay earmarks $390 million over four years for LNG

terminal project ....................................................................................... 44

Brazil: Vale resumes Amazon rail expansion after suspension ................. 45

Spain: New investment in ports could top €1.6 billion ............................. 49

Korean shipyards empty ........................................................................... 49

Boxship operators getting a taste for South-East Asia ............................. 50

Australia: Hutchison Port Holdings to cut 40% of its staff ....................... 52

New wave of neo-Panamax ship orders expected .................................... 52

Philippines: Five groups interested in $420 million Davao Sasa

port project .............................................................................................. 54

Singapore: Toll group sets up logistics hub at Tuas mega-port ................ 55

Ancient Vikings settled Greenland for the ivory ....................................... 56




Egypt to increase access to East Port Said with new channel ................... 58

Australia: Port of Townsville announces $55 million upgrade .................. 59

Germany: DB Schenker Logistics to be partially privatised ....................... 60

UAE: DP World starts US$ 1.6 billion development of fourth

container terminal at Jebel Ali .................................................................. 61

Thailand: MOL establishes barge terminal operator in Bangkok ............... 62

Bangladesh to clamp down on shipbreakers ............................................ 63

Port of Singapore calls bids for LNG bunkering ........................................ 64

Ports and their environmental impacts .................................................... 64

New funding for energy efficiency projects .............................................. 66

Ending the abuse of laws, workers and the environment at sea ............... 67

Mozambique: Port accident deals blow to Vale coal project ..................... 68

35 new ULCS in this year's first half ......................................................... 69

Twistlocks: Putting safety first ................................................................. 70

Malaysia: Malacca to convert ports into specialized hubs ......................... 72

Indonesia floats port expansion to boost faltering economy .................... 72

South Korea: Busan port development plans announced ......................... 74

U.S.: Port of Los Angeles poised to begin major upgrade of Yusen

box terminal ............................................................................................. 75

Ghana: On a greenfield in Tema ............................................................... 76




If the Panama Canal gets a rival - trench warfare in Nicaragua

01/08/2015

Why a Chinese firm might dig a giant waterway through America’s backyard

Near the mouth of the Brito river there are no paved roads, no earthmovers and no signs of

construction yet. There is a beach, a mangrove swamp teeming with crabs, and a shirtless

drifter called Peyró, whose hobby is riding bulls. There are no ships. The only crafts along

this remote stretch of the Pacific are surfboards. Could this really be the place where within

a decade the world’s largest vessels will enter Nicaragua and pass through forest, lake,

mountain and jungle between the Pacific and the Atlantic oceans? Peyró looks mystified.

“Only God knows,” he says.

And China, perhaps. Two years ago

Nicaragua put its sovereignty in hock by

giving a concession of up to 100 years for

a canal that could cost $40 billion-50

billion to Wang Jing, a Chinese telecoms

magnate. His company, HKND, says it will

soon be ready to start digging an entrance

channel near this spot. The next step will

be a port a few miles inland big enough to

process 500-metre-long ships with five

times the container-carrying capacity of

those that currently traverse the Panama

Canal.




Respectable firms such as McKinsey, a business consultant, and ERM, an environmental one,

have put their reputations on the line assessing the feasibility of the 260km (162-mile)

canal. It is surely one of the world’s most improbable infrastructure projects. However, Bill

Wild, the chief project adviser, appears raring to go. “It’s massive. I can’t stress enough how

big it is. But it’s technically relatively straightforward,” he says.

The construction alone would be a spectacle. Some 50,000 labourers (perhaps a quarter of

them Chinese) might work on site, and 2,000 diggers, dredgers and other giant machines

would excavate about 5 billion cubic metres (177 billion cubic feet) of dirt, using 5 billion

litres of fuel in the process. They will lay what they dig up 1.5km either side of the canal,

which HKND promises to turn into new arable land about three times the size of Manhattan,

partly for the 30,000 people uprooted from their homes.

Construction will no doubt damage the environment. A 107km-long, 280-metre-wide trench

will be dredged through pristine Lake Nicaragua, rainforests will be uprooted, big-cat

migration routes traversed and indigenous families ousted from sacred lands. Mr Wild

pledges that, when finished, the reforested land along the canal route will be better cared

for than it is now. But can any pharaonic enterprise, let alone a Chinese one, be trusted not

to cut corners? Environmentalists will try to block it every step of the way.

Size matters

If completed, the canal would symbolise a shift in global shipping. The two-lock waterway

could take vessels with a proposed freight capacity of 25,000 20-foot containers, or 20-foot

equivalent units (TEUs); currently the biggest ships have a capacity of around 19,000 TEUs

and make up a tiny fraction of the world fleet.




Even the expanded Panama Canal, due to open in 2016, is limited to taking cargoes of

13,000 TEUs, so ships that otherwise would have rounded Cape Horn or gone via Suez

would be able to move more easily between east and west. But container trade is slowing,

as consumer-goods production moves closer to home. HKND is betting that ship sizes will

increase to bring down costs per container.

Some believe that if the Chinese government is a backer of the project, the transit of

military as well as commercial vessels may be a hidden part of the agenda. “Just as the

United States wants to expand in the Pacific, it’s not unreasonable that China will want to do

so in the Atlantic. Any educated person can see the strategic possibilities,” acknowledges

Manuel Coronel, the head of the Nicaragua Grand Canal Authority.

So far, America has been phlegmatic about the enterprise. Perhaps, like Jorge Quijano,

administrator of the Panama Canal, it believes that financially the project is a bottomless pit

and has no future. Mr Quijano reckons that for the Nicaraguan canal to earn a competitive

return on investment, it would have to charge double the tolls levied in Panama, which

would put off most customers.

Nicaragua’s Sandinista rulers shrug off the worry. “If China is behind the project, it will not

be a big problem for Wang Jing to get the financing,” Mr Coronel says. After all, what

wouldn’t China pay to see one of its naval fleets one day emerging from the Central

American jungle right under America’s nose?

[The Economist]

East Africa: Military surveillance keeps Somali pirates at bay

01/08/2015

Military incursions on and off-shore Somalia have helped end piracy attacks on

key shipping routes around the Gulf of Aden, new data showed even though

maritime experts called for caution.

The current lull solidifies a trend since May 2012 when the last successful hijacking took

place, raising hope for more reliable shopping services and lower cost of goods leaving and

entering the east African market. “Encouragingly, in the second quarter of 2015, no reports

were received off the coast of Somalia,” Pottengal Mukundan, director of the International

Maritime Bureau (IMB) said.

“Although no attacks have been reported off Somalia, IMB advises that the security situation

in the Horn of Africa remains uncertain. IMB urges ship masters to remain vigilant when

transiting these waters and to adhere to the industry’s best management practice.”

Piracy off the coast of Somali has in the past few years cost the global shipping industry

billions of shillings in ransom pay-outs to secure captured vessels, cargo and crew.The




menace has also led to increased operational costs due to higher insurance premiums and

use of longer alternative routes round the Cape. Not forgetting hiring of special security

personnel to escort vessels through the Gulf of Aden and other measures such as

watchtowers and razor wire.

Prices of basic industrial and household items have also risen sharply after shipping lines

passed on the additional costs to consumers down the supply chain. A deployment of naval

forces around the Gulf of Aden has helped lower the incidents of piracy attacks in the past

two years.

International navies have stepped up pre-emptive action against pirates, including strikes on

their bases. But even as piracy off the shore of Somalia seems contained, authorities in

hotspots around the world registered mixed trends.

In South East Asia there has been sustained hijacking of small coastal tankers by maritime

pirates, averaging one attack every two weeks. Five small tankers were hijacked in South

East Asian waters in the second quarter of 2015 alone, bringing the total number of vessels

hijacked globally in 2015 to 13.

Globally, 134 incidents of piracy and armed robbery against ships were reported to the IMB

Piracy Reporting Centre in the first six months of 2015; an increase on the 116 reports for

the corresponding period in 2014. Pirates managed to board 106 vessels and were

responsible for 13 hijacking cases and 15 attempted attacks worldwide. So far in 2015, 250

crew members have been taken hostage, 14 assaulted, 10 kidnapped, nine injured and one

killed.

United Nations and Somali fishing officials warned in March that a rise in illegal fishing off

Somalia could spark a resurgence in piracy, nearly three years after the pirates’ last

successful hijacking in the Indian Ocean.

Alan Cole, an official at the United Nations Office for Drugs and Crime, said piracy could

return as criminal gangs and pirates use the rise in illegal fishing as a pretext to hijack other

vessels. “The international community has spent millions of dollars trying to counter piracy,

help Somalia and make sure that (sea) trade is not interrupted. But because of the activity

of a relatively small number of illegal fishing vessels, all that is put at risk,” Cole said.

[AllAfrica]

Shipping cycles – a chess game you don’t want to lose

31/07/2015

Ingmar Bergman’s classic movie The Seventh Seal is about a knight who, during

the Black Death, challenges Death to a chess match, in the hope that while the

game continues he can put off his demise.




This grim epic could be seen as a metaphor for the daunting progress through long shipping

cycles, as one risk-laden move in the toxic chess game follows another.

August 2007 - the game starts

Today’s cycle started eight years ago in 2007. It was an epic year. Capesize earnings

averaged over $110,000/day and merchant shipbuilding investment reached a record $229

billion (excluding offshore). But there was good reason to be apprehensive. In August the

first signs of the financial crisis hit Europe, as interbank investors grew paranoid about the

vulnerability of their counterparties to CDO exposure, bringing Eurodollar trading to a halt.

Meanwhile analysts were worried that the Chinese super-boom would peak out after the

Olympic Games in 2008. So although dry bulk investors were still making money and

ordering ships, the solitary chess game with destiny had already started.

Mounting a comeback

Seven years later the chess game is still going on. The financial crisis got off to a more

dramatic start than anyone anticipated. In 2008 as panic swept through financial markets

and trade credit became almost unobtainable, the world economy, including China, came

precariously close to meltdown. But fortunately this time the politicians eased through the

crisis successfully. China mounted a heroic infrastructure programme which gave bulkers a

very decent boom in 2009-10. Following this the market fluctuated, but reached decent

levels in late 2011 and again in late 2013.




Not deadly or distressed?

As recessions go so far the game with destiny has gone quite well. Since the end of 2007

Capesize earnings have averaged $32,300/day and the market has soaked up 490m dwt of

new bulkers. In 2013, 104m dwt of bulkers were ordered. So someone in the industry

believed bulkers would win their chess game.

But in 2015 the game changed. Capesize earnings averaged only $6,212/day in the first

half. For the first time signs of real distress are apparent. After 8 years, dry bulk sentiment

finally collapsed and bulker orders fell from 16m dwt in January 2014 to 0.05m dwt in June

2015. A helpful step towards market recovery, but it leaves the shipyards with a problem.

Over the last 8 years bulkers were a third of shipyard workload (see inset pie chart).

Although tankers and container ships are still being ordered, they show no sign of filling the

gap left by bulkers.

Dance macabre

So there you have it. Bulkers have finally made a meaningful move towards better times by

cutting investment. But the game isn’t over yet. They still need a strong world economy and

continued Chinese import growth. Meanwhile a new chess game with destiny is getting

started, this time in the shipyards as they try to plug the bulker gap. Maybe the game’s not

over yet. So if you want a nice relaxing summer, our advice is don’t watch The Seventh

Seal. Have a nice day.

[Clarksons]

U.S.: UPS buys Coyote Logistics for $1.8 billion

31/07/2015

The logistics firm is expected to help UPS improve its ability to handle the holiday

shipping rush.

UPS is bolstering its capacity to adapt quickly to changes in shipping demand by acquiring

Coyote Logistics for $1.8 billion, less than two years after UPS bungled the crucial holiday

shopping season. The deal reflects a concerted effort to improve the shipping giant's ability

to handle the holiday shipping rush, which presents enormous logistical challenges.

Chicago-based Coyote Logistics, an arm of private equity firm Warburg Pincus, has

developed a network of 35,000 contract carriers and a range of software designed to help

deliver short-term trucking services to shipping companies.

In 2013, UPS came under fire after failing to deliver thousands of packages to customers

before Christmas, revealing shortfalls in the company's logistics operations. The company's

performance improved in 2014, but every holiday shopping season presents a new test.




Coyote has helped UPS expand its shipping capabilities during the holidays in recent years

by hiring third-party shippers. The company had reportedly been considering an initial public

offering before the UPS deal.

Atlanta-based UPS said Coyote would operate as a subsidiary. The logistics firm had $2.1

billion in revenue in 2014. Coyote "has played a growing role in supporting UPS peak

operations over the past few years and the company expects to leverage Coyote’s carrier

network even further for this purpose in the future," UPS said in a statement.

UPS hopes to close the transaction within a month and will use a combination of cash and

debt to finance the deal. The company expects to wring out about $100 million to $150

million in annual cost savings following the tie-up.

The deal is expected to boost UPS' ability to advise its customers on their supply chain

management. Businesses that regularly ship products are constantly seeking tweaks to their

shipping networks to save costs, speed shipping times and improve reliability.

“UPS is enthusiastic about this acquisition on many levels because there are opportunities

for growth, synergistic efficiencies and transfer of best practices and systems across all of

our operating segments,” UPS CEO David Abney said.

[USA TODAY]

U.S.: MARAD to fund hydrogen-powered-ferry project

31/07/2015

The US Department of Transportation’s Maritime Administration (MARAD) will

set aside $500,000 for the construction and operation of a passenger ferry

powered by hydrogen fuel cells, and an accompanying fuel station.

The fuel cell would provide power for the ferry’s propulsion and auxiliary electrical systems,

and will benefit from hydrogen’s complete lack of emissions, beyond water and heat.

Meanwhile the hydrogen refuelling station, to be set up in San Francisco, would be the

largest in the world according to MARAD, and would serve local electric cars and buses as

well as fuelling the ferry and other hydrogen-powered vessels.

The new ferry is one of a number of recent MARAD initiatives to introduce hydrogen into

shipping. Past projects have included a containerised hydrogen-fired generator project,

which began in 2013, for use as a 100 kw of shore power supply, or a portable on-ship

generator for providing power to reefer containers, as an alternative to auxiliary diesel

gensets.




Hydrogen for deepsea ship propulsion is understood to be a long way off, however, due to

high build costs. A 2009 study from then-Germanischer Lloyd found that a 1,000 teu

Hydrogen-fuel-cell-powered feeder vessel with a 920 cu m hydrogen capacity would cost

60% more than an HFO-powered equivalent. Nevertheless fuel cell technology, has been

proven feasible, with a 330 kW fuel cell successfully installed and utilised aboard OSV Viking

Lady since 2009.

“This study is just one more way in which MARAD is working to find new and efficient

technologies for use in the maritime industry that offer clean-fuel options to cut emissions,”

said MARAD maritime administrator Paul Jaenichen. “The US maritime industry can play an

important role in reducing the world’s carbon dioxide emissions and creating a more

sustainable future for us all.”

MARAD is also funding an effort to demonstrate a fuel cell for ship auxiliary power for its

school ship Kennedy, which is used by Massachusetts Maritime Academy as a training

vessel.

[Seatrade Maritime News]

Singapore: NOL’s new fleet may lure buyers despite shipping

slump

31/07/2015

Singapore state investor Temasek Holdings' planned sale of shipper Neptune

Orient Lines (NOL) offers potential buyers a modern fleet at a comparative

bargain price expected to be around $2 billion, industry and banking sources

said.

The catch? The asset has lost more than $1 billion in four years and may be on the block at

a time when the global container shipping industry is in the grip of a severe prolonged

downturn. The global sector's debt has nearly doubled to $86 billion over the past decade,

said Rahul Kapoor, Singapore director of Drewry Equity Research, with spot Asia to Europe

and transpacific container freight rates near six-year lows.

Still, industry sources say NOL's new ships and 2.8 percent slice of the global container

shipping business can be expected to appeal to players seeking an edge over rivals. Qatar-

controlled United Arab Shipping Company (UASC) can be expected to join the likes of

Germany's Hapag-Lloyd AG HOLG.UL and Hamburg Sud in running the rule over NOL, these

people said.

Temasek, with nearly $200 billion in assets, recently hired Citigroup (C.N) to seek buyers for

the majority stake in NOL it bought in 2004 for S$2.8 billion ($2 billion), the people added,

triggering the sale of the whole firm under Singapore rules. NOL has made losses in five of




the past six years, but the bank's task may have become a tad easier after the shipper said

on Thursday it eked out a tiny net profit in April-June after six straight quarters of losses.

Buyers would need to offer at least 30 percent more than NOL's current market value of

about $1.8 billion - the usual premium paid to acquire a publicly traded company, bankers

said. Both Citi and Temasek declined comment.

"UASC now has much wider options since the Qataris took control, and the Qataris want to

be world-class in everything they touch," said a Hong Kong-based structured asset banker

involved in shipping and transportation deals.

UASC, Hapag-Lloyd and Hamburg Sud all declined to comment.

"The company has a duty to consider all options to maximize shareholder value.

Hypothetically if I receive a good price for the business, we will always consider selling,"

said NOL Chief Executive Officer Ng Yat Chung, speaking after Thursday's results.

"What I can say now is that the company is totally focused on returning the liner business

into profitability," he said. In line with that commitment, it sold its only profitable logistics

division for $1.2 billion this year.

Boosting NOL's appeal is the fact that a buyer would gain a young fleet for around half the

cost of new vessels, said Andy Lane, a partner at Singapore's CTI Consultancy. "My favourite

motivation for the buy remains fleet renewal," said Lane. "There is global overcapacity, but

shippers also need to keep their fleets right-sized, flexible and young."

[Reuters]

Hurricanes: New insights on intensity and pollution transport

31/07/2015

Researchers study currents that fuel hurricanes and transport pollutants to

coastal beaches

As tropical storm Isaac was gaining momentum toward the Mississippi River in August 2012,

University of Miami (UM) researchers were dropping instruments from the sky above to

study the ocean conditions beneath the storm. The study, titled Enhanced Wind-Driven

Downwelling Flow in Warm Oceanic Eddy Features during the Intensification of Tropical

Cyclone Isaac (2012): Observations and Theory, was published in the June 2015 issue of the

Journal of Physical Oceanography. It showed how a downwelling of warm waters deepened

the storm's fuel tank for a rapid intensification toward hurricane status. The results also

revealed how hurricane-generated currents and ocean eddies can transport oil and other

pollutants to coastal regions.


http://journals.ametsoc.org/doi/abs/10.1175/JPO-D-14-0176.1





The figure depicts the upper ocean warming (in red color) observed over the warm rings during the

intensification of tropical storm Isaac. Credit: Benjamin Jaimes

Tropical storms obtain their energy from the ocean waters below. As a storm moves across

the Gulf of Mexico, it may interact with an upwelling of cooler waters from the deeper ocean

or, in the case of Isaac, a downwelling inside rings of warm water that separated from a

warm-water current, called the Loop Current, that moves through the Gulf of Mexico to join

with the Gulf Stream along the U.S. East Coast. As the storm moves forward, ocean

temperatures are fueling the storm's intensity.

UM Rosenstiel School of Marine and Atmospheric Science researchers, in collaboration with

NOAA's Atlantic Oceanographic and Meteorological Laboratory, deployed a total of 376

airborne sensors during six NOAA hurricane hunter aircraft flights conducted before, during,

and after the passage of Isaac over the eastern Gulf of Mexico. The researchers observed a

predominant downwelling of water inside these warm-water rings, or eddies, from the Loop

Current, which caused its intensification from a tropical storm to a category 1 hurricane just

prior to landfall.

"These results underscore the need for forecast models to include upwelling-downwelling

responses to improve intensity forecasting and current transport," said Benjamin Jaimes, an

assistant scientist at the UM Rosenstiel School.




"Isaac moved over the region of the Deepwater Horizon oil spill where we observed both

upwelling and downwelling processes that can re-suspend hydrocarbons lying on the

seafloor," said Nick Shay, professor of ocean sciences at the UM Rosenstiel School. "This

may have resulted in tar balls being deposited on beaches by hurricane-generated currents."

Tropical storm Isaac gradually intensified in the Gulf of Mexico to reach category 1 hurricane

status as an 80 mph (130 km/h) storm, making landfall along the coast of Louisiana. The

storm was estimated to have caused $2.39 billion in damage along its track.

[EurekAlert! / University of Miami's Rosenstiel School of Marine & Atmospheric Science]

México: Manzanillo becomes first fully electrified container

terminal in the Americas

31/07/2015

Manzanillo Container Terminal, operated by SSA México (SSAM), has become the

first container terminal in the Americas to operate entirely on electric power.

Conductix-Wamplfer, a provider of electric rubber-tyred gantry crane (E-RTG) solutions,

announced that SSAM has successfully completed a full-scale electrification project at its.

SSAM began the transition from diesel to electric power in September 2012 to retrofit eight

RTGs to E-RTGs using its own manpower.

Over the next two and a half years, SSAM converted 32 RTGs to electric, while also

purchasing four new E-RTGs from Chinese manufacturer ZPMC, all equipped with Conductix-

Wampfler cable reels. To complete the initiative, SSAM also converted four Paceco RTGs into

RMGs for intermodal rail yard operations. Each unit is powered with Conductix-Wampfler’s

Hevi-Bar II Conductor Bar System.

Gabriel Juri, cranes maintenance manager at SSA Mexico, said that the performance of the

E-RTGs was satisfying, “particularly due to the higher speeds and increased productivity

from not having to refuel or conduct diesel engine maintenance”. SSAM hopes to reduce

diesel fuel consumption by an estimated 95%, while expecting maintenance costs to fall due

to the greater reliability of the E-RTGs with less downtime.

[Container Management]

UK: Peel Ports secures £40 million development at Port Wirral

31/07/2015

The Hydrodec Group has entered into an agreement with Peel Ports for a long-

term lease on a nine-acre site at Port Wirral, as the location for a purpose-built

oil re-refinery.




The AIM-listed company, which operates two other used oil re-refineries, in Ohio and

Australia, will now bring forward an application detailing its plans. Subject to approval, the

nine-acre Eastham site at Queen Elizabeth II Docks will form the first phase of a £40m

development.

The re-refinery process transforms used oil which would otherwise be treated as a waste

product into a new product which can be re-used as base oil for lubricants used in the

automotive and industrial sectors. Construction is expected to start in 2016 and will take

around 18 months to complete.

The deal with Hydrodec comes four months after food and logistics provider, Culina, signed

a deal to become the anchor tenant at Peel Ports’ £125m multi-modal logistics hub on the

Manchester Ship Canal, called Port Salford. As part of plans to develop the re-refinery, Peel

Ports will invest more than £400,000 to relocate and provided an upgraded pitch, changing

and club facilities for community football team MSC Eastham.

Mark Whitworth, chief executive of Peel Ports, said: “The deal with Hydrodec has come as a

result of the significant investments Peel Ports is making to position the North West as a

prime location for exporters and importers.

“Peel Ports’ investments in transport infrastructure, such as Liverpool2 and the Manchester

Ship Canal, is already accelerating the growth of businesses in the north. “Hydrodec’s £40m

oil re-refinery will have a positive impact on the local economy and create new jobs directly

and in the supply chain.”

[Place North West]




Shipping emissions: Mountain high, ocean deep (part one)

31/07/2015

Carrying as much as 90% of world trade, the international shipping industry is

crucial to the intercontinental trade activities that underpin the global economy.

It has been estimated that if the growth of the past 150 years continues, the current 8

billion t of cargo being transported across the globe annually will soar to 23 billion tpy in the

next 50 years. However, with the increasing volumes of cargo being transported annually,

rising levels of marine emissions are under close scrutiny by world environmental

authorities.

Ocean shipping can generally be divided into two cargo submarkets: bulk or crude/refined

petroleum products and dry cargo. Bulk goods comprise iron ore, coal, grain, phosphates

and bauxite, as well as non-ferrous metal ores, feed and fertilisers. However, crude oil is the

big player worldwide, accounting for approximately 25% of all goods transported by sea.

While the global shipping industry is responsible for only 3% of greenhouse gases, this

contribution has recently prompted significant changes in the legislated control of emissions

from this sector. A key concern is the health of communities living in close proximity to

major ports and shipping lanes.

For environmental reasons, LNG and even wind propulsion and nuclear power are

occasionally employed to propel commercial shipping, but the majority still use a

reciprocating diesel engine as their prime mover, powered by fuel oil, also known as bunker

oil.

Combustion of bunker oil in ships generates the same pollution components as those

emitted from road transport vehicles and is similar to the emissions footprint from other

fossil fuel burning industries such as electrical power plants. However, most of the sulfur

emissions from land based transport are eliminated by the use of low sulfur fuels, where the

sulfur is removed at the refinery.

There is also a growing trend for automotive sector NOX emissions to be reduced using

selective catalytic reduction (SCR) with the addition of urea as a source of ammonia. In the

power generation industry, SO2, NOX and PM pollutant emissions are reduced through the

use of wet gas scrubbing for SO2 removal, by reaction of SO2 with lime, reaction of NOX

with ammonia in SCR and selective non-catalytic reduction (SNCR) technologies and

electrostatic precipitation for PM reduction. These techniques are highly effective in cleaning

the flue gas from the power plants. By comparison, the control of these emissions from

shipping has historically been less rigorous, but the trend is going in a similar direction and

is being driven by phased implementation of environmental protection legislation through

the International Maritime Organization (IMO) and MARPOL.




Shipping takes its turn in the legislative queue

Marine pollution is regulated internationally and one of the key international conventions for

the prevention of pollution at sea is MARPOL 73/78, adopted by the IMO in 1973, and later

updated in 1978 after several severe tanker accidents. The convention includes regulations

aimed at preventing and reducing pollution at sea from ships, including both accidental

pollution and pollution from routine operations. Today, countries that have signed up to the

MARPOL legislation represent 98% of international shipping.

This convention has seen the designation of special so called emission control areas (ECAs)

where stricter controls on the principal marine emissions NOX and SO2 have been put in

place. These ECAs are generally designated in densely populated areas close to high levels

of shipping and their regulations are also cascaded into regional and local legislation through

regional authorities such as the European Union.

Following agreement at the IMO and incorporation into European law, the Baltic Sea became

the first fully implemented ECA in August 2006, followed a year later by the designation of

the North Sea and English Channel as the second ECA. In August 2012, new ECAs were

designated for ships trading off the coasts of Canada, the USA and the French overseas

collectivity of Saint-Pierre and Miquelon. A new area, the US Caribbean Sea ECA, covering

certain waters adjacent to the coasts of Puerto Rico and the US Virgin Islands, took effect

from January 2014. Further ECAs seem likely to be proposed for Norway and Japan, possibly

for the Mediterranean and Black Seas and the seas around Mexico, Korea, and potentially

the heavily used Malacca Strait.

The issue of designating the Malacca Strait as an ECA is the subject of frequent debate,

since the diversity and scale of shipping activities in this area is massive and it would be

extremely challenging to monitor and enforce the emission regulations. Effectively, this

inclusion would mean regulating most of the world’s shipping operators. Whilst this might be

highly desirable from an environmental perspective, it would also be highly complex.

A phased reduction of SOX emissions in ECAs saw the allowable amount of fuel sulfur

reduced to from 1.5% to 1.0% in July 2010 and this has been further lowered to 0.1% in

January 2015. Outside of ECAs, the current global limit of 3.5% sulfur in fuel was reduced

from 4.5% to 3.5% in January 2012, and is likely to be further reduced to 0.5% in 2020.

In terms of NOX, an inevitable byproduct of combustion of fuel with air, January 2016 is

expected to herald the stringent IMO Tier III emission limits for ships constructed after

January 2016 operating within the North American and US Caribbean Sea ECAs. The Tier III

standard represents a 75% reduction in NOX emissions compared to current Tier II engines

and is valid for marine diesel engines with an output of more than 130 kW power. Although

it remains technology neutral, the IMO regulation assumes that these standards will be met

through the application of abatement technologies, such as SCR, that can either be used

continuously whilst at sea, or can be activated only when entering the ECAs and thereby

reducing commercial shipping and international trade operating costs.




A proposal was published June 2013 (no. 525/2013) by the European Commission in order

to regulate CO2 emissions from the maritime industry. The proposal aims to reduce

greenhouse gases (GHG) emissions by 2050 to levels 50% lower prior to 1990 by

establishing a European monitor report verify (MRV) system. This MRV system can be based

either on the calculation of fuel consumption or stack monitoring. In case of the latter, a

monitoring plan needs to be submitted to the authorised verifiers at the latest by August

2017, before the start date of monitoring, 1 January 2018.

Little can be done to reduce the CO2 produced by the combustion processes at sea, but

there are certainly proven and cost effective methods to reduce NOX and SOX (mainly sulfur

dioxide) present in the emission stream. Mitigation measures focus on process control and

management and detection of post combustion emissions.

Part two of this article will be available soon.

[Hydrocarbon Engineering]

Fatter ships to come in the race to rule shrinking trade routes

31/07/2015

EXPERTS expect more wide-beam 14,000- to 15,000-TEU ships with 21-deck

rows and 53.5 metre beams are coming given the popularity of wide-beamed

8,500 - 10,000-TEUers, according to Alphaliner.

How carriers propose to fill these ships remains unanswered. Yet newbuilding orders still roll

in. Freight rates are at historic lows as carriers almost pay shippers to take their freight, so

where are the much-touted efficiencies of scale these giants boast of?

Perhaps, not until there is a temporary hiatus on newbuilding ordering among the top 20

ocean liners, to pull back from the lemming-like abyss.

According to Alphaliner, such ships would offer a draft advantage of 50 centimetres when

compared to the current 14,000-TEU vessel designs with 20-container, deck rows. A further

advantage of the 21-row vessels is that they offer flexibility in drawing up cargo plans and

raise the prospect of stowing higher deck loads of laden containers.

Then again, the new 14,000+ TEU wide-beam units would be too bulky to transit the

expanded Panama Canal after it opens in 2016, being forced instead to take a longer, slower

and more fuel-consuming Suez route.

A first order for wide-beam containerships with 21-deck rows was placed by Maersk, which

ordered nine such vessels from Hyundai Heavy Industries, including options for up to eight

sister ships.




While the world's largest carrier by fleet size declares the chunkier 14,000-TEU ships are

capable of carrying loads of up to 15,000 TEU, who can tell where these greater loads

coming from?

[Hong Kong Shipping Gazette]

European Commission starts work on MRV implementation

31/07/2015

The controversial EU Regulation on the monitoring, reporting and verification of

Carbon Dioxide emissions from maritime transport came into force on 1 July

2015.

To ensure uniform implementation of the regulation, the European Commission has

established two Subgroups that will look at the monitoring, verification and accreditation

processes. The first meeting of the two subgroups, chaired by the European Commission

and composed by experts coming from different backgrounds including industry,

consultants, academia and Member States, held their inaugural meeting in Brussels on 7th

and 8th July.

The MRV verification and accreditation subgroup held lively and productive discussions, with

industry representatives, including the UK Chamber, raising a number of substantial issues

with respect to the concept papers presented. In particular, the subgroup considered

development of specific rules for the competencies of the verifiers, the assessment of the

conformity of the monitoring plan and annual emission report by the verifier and methods of

accreditation of verifiers.

Unfortunately, it is now more evident that the verification process of the monitoring plan

and annual emission reports – based on the Aviation EU Emissions Trading System (EU ETS)

– will be a very costly task for the industry.

On the other hand, the monitoring subgroup dealt with more technical issues, which

included cargo parameter options and other key elements, such as distance travelled and

total time spend at sea. With regard to the offshore sector and dredgers, the Commission

established an ad hoc expert working group chaired by the UK Chamber of Shipping to

further assess the need for sector-specific parameters, determine the amount of cargo

carried and propose options, where appropriate, for these category of ships.

Accurately assessing a ship’s energy efficiency is challenging. However, it is made more

challenging still when the EU Commission’s intentions on future policy measures are

unknown. Any system and parameter option could have adverse impact and potentially

distort competition.

Yet, under these conditions of uncertainty the industry is now required to make decisions.




The UK Chamber of Shipping has continuously voiced that a global MRV system regulated by

the IMO would be the most appropriate means to achieve a reduction of emissions from

shipping.

However, in light of lack of progress at the IMO towards this aim, the UK Chamber has

established a voluntary carbon emission reporting scheme in order to take a proactive

industry stance. The scheme, launched on 1 January 2015, aims to support and influence

the IMO and EU discussions on the development of an appropriate and workable monitoring,

reporting and verification system, through evaluating the proposed methods. Halfway

through the scheme, there are indications that some of the proposals will have serious

implications for the operational energy efficiency of a ship.

The EU MRV regulation aims to reduce CO2 emissions by establishing a MRV system and

publishing ship’s emission data in order to remove market barriers and promote cost-

effective measures. However, failing to consider a system that could be easily and fully

aligned and welcomed by the IMO and be as low-cost to the industry as possible, will be a

backward step and will raise concerns about how pragmatic are any promised reductions.

[UK Chamber of Shipping / GREEN4SEA]

South Africa: Wallenius Wilhelmsen Logistics pays $7.5 million

fine for price fixing

31/07/2015

Norway’s Wallenius Wilhelmsen Logistics (WWL) has agreed to pay a R95.7m

($7.5m) fine in South Africa for contravening the republic’s Competition Act.

WWL was one of a number of car carrier firms investigated by South Africa’s Competition

Commission for price fixing collectively, the latest in a series of worldwide clampdowns on

price fixing in the car carrying sector.

WWL was found to have colluded with other companies on 11 tenders to shift cars to and

from South Africa.

[Splash 24/7]

Australia / Indonesia: ITF set to fight Hutchinson Port Holdings

31/07/2015

The International Transport Workers’ Federation has challenged Hutchinson Port

Holdings (HPH) over Australian and Indonesian worker treatment, stating they

are ready to ‘fight’ and are ‘here to stay’.




In Australia, Hutchison Ports Australia (HPA) stands accused by the ITF of using automation

and forced redundancy to get rid of union members. In Indonesia HPH is aiming to take on

a port concession, the award is said to be opaque, rushed and potentially contrary to the

national and local interest, according to an ITF press release.

In 2013 HPA started operations in Brisbane and Sydney after a new competition policy

introduced a third stevedoring operator in major Australian ports. Both ports were set up

with automated stacking cranes (ASCs) and manned shuttles.

HPA has now announced it will be ‘withdrawing from current bids for work in Australia and

reviewing the level of services that we will be offering effective immediately.’ Around a

hundred workers out of a workforce of 224 face compulsory redundancy. The Maritime

Union of Australia (MUA) contends that the forced redundancy process has been set up to

remove union activists and delegates.

ITF President and Dockers’ Section Chair Paddy Crumlin said: “My union, the MUA, has

received leaked documentation outlining a plan called ‘Phoenix Rising’, which indicates that

HPA is secretly planning to introduce automated straddles and automated remote quay

cranes. “This is union busting by automation. It’s totally contrary to the principle of

‘automation by negotiation’. It will be challenged, including legally. In the meantime the

MUA has reiterated its offer to HPA to look for a negotiated solution.

“Meanwhile in Indonesia, parent company HPH is unashamedly benefiting from a non-

transparent concession award process that is against the interests of existing workers – four

of whom were sacked for protesting against it, and only reinstated after the union took

strike action.

“Between these three ports a picture is emerging of a blatant disregard of workers and

dialogue. This is not the behaviour we expect from HPH. We insist that HPH returns to

negotiations and the search for fair and just settlements.”

MUA have devised an eight point set of demands to HPH, completing it with the statement:

“We will fight Hutchison Ports Australia until they realise we are WORKERS, we are

WHARFIES, we are MUA and we are HERE TO STAY.”

[Port Technology International]

Shipbreaking: Cleaning up graveyards of steel

31/07/2015

For decades, the dangerous and polluting shipbreaking yards that stretch for six

miles along the beaches of Alang, India, successfully resisted the efforts of

activists and foreign governments to shut them down.




Fewer trips to the beach. Photographer: Sam Panthaky/AFP/Getty images

But in recent months, they may have finally met their match in a different adversary.

Desperate steel mills in China, whose domestic markets have diminished in a slowing

economy, are dumping their surplus on India.

Suddenly, the thousands of tons of steel generated by Alang's ship recyclers cost more than

much of what China is sending to Indian shores. The impact has been profound. The

number of Alang shipbreakers has declined to 50 from 100 last year, according to the Ship

Recycling Industries Association of India.

Cheap Chinese steel, however, is just the immediate problem for Alang's ship breakers. A

bigger threat from China is that the country's shipbreakers have been cleaning up their act

with the government's help and are poised to offer the world's shipowners sustainable, low-

cost ship-breaking services, at least compared with those in Europe and the U.S. Though

China won't extinguish Alang completely, its Chinese-induced travails mean that it's in far

worse shape to upgrade and compete with China's more environmentally advanced ship

breakers.

That's not how things were supposed to work out for Alang. Its ship-breaking industry dates

back to the early 1980s and an early boom in India's construction sector. The area's

recyclers saw an opportunity to provide cheap steel to mills and contractors, and they

started importing used ships to demolish.

Alang's access to tens of thousands of low-cost laborers gave it a large advantage over ship

breaking in the developed world, where labor costs in particular made the dangerous and




dirty work far less profitable. Similarly, environmental regulations in the developed world --

and especially the expectation that ships would be dismantled in concrete dry docks to

prevent contamination -- posed a prohibitively expensive barrier to entry for recyclers. In

Alang, however, there is no need for a large investment -- the ships are just driven on to the

beach and disassembled there. In good years, the beach and its more than 60,000 directly

employed workers can recycle hundreds of the world's largest ships into rebar and other

basic construction materials.

Operations have improved recently in Alang, but they're nothing compared with the quiet

transformation of China's ship-breaking industry. It began in the early 1990s and gathered

momentum in the 2000s, when Danish shipping giant Maersk teamed up with a recycling

company near Shanghai to create a shipbreaking operation that combined its high European

standards with China's relatively cheaper labor and capital-investment rates. Since then, the

Maersk operation has been spun off while still upholding the same standards. It and a

government-supported Chinese yard in south China are now seeking recognition from

European regulators to handle their ships.

Nonetheless, even during bad times, the cost of recycling in China is still higher than it is in

Alang. Consequently, India's ship breakers have long been able to pay more for a ship than

their Chinese rivals have, so the old ships continued to steam past China to Alang and other

South Asian ports.

Then the Chinese government stepped in.

In 2013, in search of a means to bolster ship recycling and spur an already sputtering

economy, the government adopted a massive ship-recycling subsidy that was recently

extended to 2017. Chinese shipowners receive $120 a ton for a recycled ship and an extra

$120 a ton applied to the purchase of a new one. There was no longer any economic

incentive to send old Chinese ships anywhere but China, and Alang -- and other South Asian

destinations -- began to lose out. The consequence for the industry has been substantial.

From January to April, before the most recent tumult hit full force, China recycled 65 ships,

24.8 percent of the 262 scrapped worldwide during the period, according to the NGO

Shipbreaking Platform, behind India's 69 and Bangladesh's 66. In all likelihood, it will be No.

1 in the next quarter.

That momentum is unlikely to fade. Alang, hobbled by a collapse in steel prices, is in little

position to make capital investments, much less compete against a Chinese state-subsidized

industry. Even worse, from Alang's standpoint, is that the ship-breaking industry appears to

be tilting away from Alang and its old methods to China and its new ones. (Turkey, notably,

is also making a play to become a sustainable ship recycler). A new European Commission

regulation expected to come into effect later this year requires that European-Union-flagged

ships be recycled only in approved, sustainable facilities. Though there are ways to

circumvent the regulation, the EU seems particularly determined to punish those who try.




China's ascendancy as a ship breaker won't spell the complete demise of Alang. Countries

and shipowners will still send ships to its beaches. But thanks to government investment and

a collapsing steel price, China now has a big head start on becoming the destination of the

future. Alang, unexpectedly, will have to play catch-up.

[Bloomberg]

NGO Shipbreaking Platform issues South Asia Quarterly Update

30/07/2015

The NGO Shipbreaking Platform publishes today the sixth South Asia Quarterly

Update, a briefing paper in which it informs about the shipbreaking industry in

Bangladesh, India and Pakistan.

Providing an overview of vessels broken on the beaches of South Asia, accidents, recent on-

the-ground, legislative and political developments including our activities in South Asia we

aim to inform the public about the negative impacts of substandard shipbreaking practices

as well as positive steps aimed at the realisation of environmental justice and the protection

of workers’ rights.

In this sixth edition of the South Asia Quarterly Update we inform amongst others about

recent cases of workers killed or injured in shipbreaking yards. Between April and July 2015,

the Platform documented at least six fatal accidents in the shipbreaking yards in

Bangladesh. It recorded three severe injuries in these three months. In the month of July

only, at least five workers died in various accidents. We also inform about the operation on

Ebrahim’s leg, a 15-year-old worker, thanks to private donations made by people who saw a

documentary about shipbreaking filmed last year in Chittagong.


http://www.shipbreakingplatform.org/shipbrea_wp2011/wp-content/uploads/2015/07/SOUTH-ASIA-QUARTERLY-UPDATE-6_final.pdf



213 large commercial vessels were sold for breaking in the second quarter of 2015,

including 136 end-of-life ships that were beached in South Asia, most of which ended up in

Alang or Mumbai in India (52 ships), Chittagong in Bangladesh (47 ships), and Gadani in

Pakistan (37 ships).

[NGO Shipbreaking Platform]

Concession agreements and market entry in the container

terminal industry

30/07/2015

The capabilities and strategies required for obtaining a concession to operate a

container terminal in a seaport is the theme of the study conducted by Thanos

Pallis, Theo Notteboom and Peter de Langen. The study is part of a new volume

of “Port Managemen just published by Palgrave.

The volume brings together a collection of seminal papers from Palgrave's journal, Maritime

Economics and Logistics. It contains contributions from authors with different disciplinary

backgrounds, representing a vast regional diversity. The volume provides investigations into

key topics in port economics, including research on global supply chains, port networks,

choice modelling, port infrastructure, competition, port pricing, efficiency in European

seaports, and an analysis of Chinese container ports.

In the study Concession Agreements and Market Entry in The Container Terminal Industry, ,

the authors analyse the extent to which concession procedures create entry barriers and

lower the contestability of the market is assessed. Recent studies and policy initiatives have


http://www.porteconomics.eu/downloads-section/category/2-book-chapters?download=414:2015-port-management-mel-2008-pallis-et-al-revised



stressed the importance of lowering economic, institutional, and locational entry barriers in

seaports. Concession procedures have an effect on market entry. Tenders may lower entry

barriers, by ensuring transparency, restricting discrimination and exclusivity, and limiting

concessions to certain periods. However, tender procedures may also introduce entry

barriers in a number of ways, including the requirement of capabilities and track records to

win a tender.

The study, an update of a seminal paper that was originally published in 2008, examines

relevant empirical material of concessions in major container European ports to evaluate

these issues.

[PortEconomics]

Canada invests in safety of Arctic shipping

30/07/2015

The Government of Canada announced Thursday that it is investing $22.7 million

over the next five years to help improve the safety of marine transportation and

navigation in the Arctic.

Nearly 95 percent of goods transported in the Canadian arctic are shipped by sea, and the

money will go towards ensuring communities in the remote North will continue to receive

goods safely by ship.

As part of the investments, Fisheries and Oceans Canada’s Canadian Hydrographic Service

will acquire and install four state-of-the-art multibeam sonar systems aboard Canadian Coast

Guard icebreakers to help boost seafloor surveying and charting in the Arctic. The Canadian

Coast Guard also plans to immediately enhance its emergency response and search and

rescue capacity in the Arctic by stepping up its current Coast Guard Auxiliary presence in

remote locations.

“Together, these measures demonstrate the Government of Canada’s ongoing commitment

to strengthen marine safety to protect the public and the environment,” commented he

Honourable Gail Shea, Minister of Fisheries and Oceans. “By improving the charting of Arctic

waterways and developing options to improve navigation systems and infrastructure, our

Government is taking the necessary steps to support incident prevention and marine safety

in the Arctic.”

Transport Canada will also work closely with Aboriginal groups and local communities on

ways to improve marine transportation in the North.

The government says the investment is expected to directly benefit the northern economy

and remote communities that depend on ships for vital supplies, fuel and overall economic

development.




“The Government of Canada is proud to announce these improvements in marine

transportation in the Arctic,” said The Honourable Lisa Raitt, Minister of Transport. “Our

enhanced ability to map Canada’s Arctic waters will result in better charts and navigational

information, leading to improved safety for mariners in the North.”

Moving forward, the Canadian Coast Guard, the Canadian Hydrographic Service and

Transport Canada will also be working together on a separate initiative to determine what

mix of navigational services, infrastructure, and emergency response services is needed

across Canada’s Arctic waterways.

The Harper Government has also submitted for another $34 million over five years starting

in 2015–16 under its proposed Economic Action Plan 2015, which would support

meteorological and navigational warning services in the Arctic.

[gCaptain]

New book highlights the hidden connection between food

waste, hunger and climate change

30/07/2015

If food waste were a country, it would be the third largest emitter of greenhouse

gases behind China and the United States.

Yet, the connection between food waste and climate change is often missing. UTC Building

& Industrial Systems has released a new book to connect the issues of hunger, resource

conservation and climate change mitigation.

In an effort to elevate global awareness of this issue, John Mandyck, chief sustainability

officer, UTC Building & Industrial Systems, and Eric Schultz, former chairman and CEO of

Sensitech, a United Technologies company specializing in cold chain monitoring and

visibility, co-authored a 182-page paperback book, called Food Foolish: The Hidden

Connection Between Food Waste, Hunger and Climate Change, which calls attention to the

extraordinary social and environmental opportunities created by wasting less food.

"Hunger, food security, climate emissions and water shortages are anything but foolish

topics," said Mandyck. "The way we systematically waste food in the face of these

challenges, however, is one of humankind's unintended but most foolish practices. We hope

this book will be a catalyst for a much needed connected global dialogue on an issue that

we believe is essential to the sustainability of the planet."

One-third or more of the food we produce each year is never eaten. Meanwhile, more than

800 million people – a population equivalent to the United States and European Union

combined – are chronically hungry. Food waste also has a devastating environmental

impact. The embodied carbon dioxide emissions in food waste alone represent 3.3 billion




metric tons. That's the energy used to produce food that's never eaten, including fuel for

tractors used for planting and harvest, electricity for water pumps in the field and the power

for processing and packaging facilities. In addition to greenhouse gas emissions, the water

used to grow the food we throw away is greater than the water used by any single nation

on the planet.

"The very foods we need to address global nutrition and meet consumer demand are the

most water-intensive and require the greatest protection along the supply chain," said

Schultz. "Their loss and waste not only intensifies hunger, but destroys our freshwater

resources."

The impacts of food waste are magnified by our growing planet. The world's population is

expected to grow by another 2 billion people by 2050, with the added challenge of feeding

more.

"We already produce enough food to feed 10 billion people – everyone today and those

expected by 2050," said Mandyck. "We must implement readily available strategies to avoid

food loss and extend food supplies – including energy efficient, sustainable and affordable

technologies that better preserve food during transport and distribution, improved food

safety standards and a change in consumer behavior. When we waste less, we feed more.

Without action, the low-hanging fruit for reducing climate change will continue to literally rot

before our eyes."

Food Foolish was co-written by Mandyck and Schultz and features forewords from Philippe

Cousteau, founder of EarthEcho International and Emmy-nominated television host, and

Barton Seaver, explorer with National Geographic and director of the Healthy and

Sustainable Food Program at the Center for Health and the Global Environment at the

Harvard T.H. Chan School of Public Health.

To order a copy of Food Foolish, visit www.amazon.com or www.FoodFoolishBook.com.

Proceeds from the book will be donated to food charities.

[PRNewswire]

Brazil: Plans to develop $447 million Pontal Port project at

Paranaguá

30/07/2015

Brazilian authorities are reportedly progressing plans to develop the $447 million

Port Pontal project in Southern Brazil which will potentially create the largest

container warehousing area in the country, according to comments from Ricardo

Bueno Salcedo, director of Pontal harbor to local news agency Portos e Navios .




The ambitious project will be located close to the existing hub port at Paranaguá and aims

to increase port capacity for the Paraná river by 55%, growing from 45 to 70 million tonnes.

"The new port will create a more dynamic environment and contribute to the economic and

social development of the region. While in the past eight years, Santa Catarina received

three new terminals - in Navegantes, Itapoá and Imbituba - Paraná remained stagnant,"

Salcedo said.

Located approximately 23 km from the ocean the Port of Pontal will have a draught of 16

metres and the first phase of work is expected to be completed in the second half of 2017.

Plans for the new Port of Pontal include extensive rail infrastructure with the site’s hinterland

to benefit from more efficient Rail Mounted Gantry (RMG) cranes rather than conventional

Rubber Tire Gantry (RTG) cranes. Once fully operational the site is expected to handle 2

million TEU.

"Puerto Pontal symbolizes the confidence we have in the future of the country. It will be a

major breakthrough in the port sector. Even with the difficulties facing Brazil," Salcedo

added.

Brazil’s port sector has faced strong headwinds for growth as corruption allegations and

recession have mired government plans in a swamp of delays. Although President Rousseff

announced ambitious plans earlier this year to “revive economic growth” and invest around

$12 billion in port upgrades serious doubts have been raised as to how this investment will

materialise.

“There’s a feeling that Santos, just like Brazil, has missed its opportunity and the golden

years have passed us by,” said Karla Simionato, coordinator of economic science at the

Catholic University of Santos told Bloomberg.

[Port Finance International]

Suez Canal expansion impact questioned

30/07/2015

On 6 August, the Suez Canal expansion project becomes operational. But the jury

is out on whether it will spur more traffic or better accommodate the major rise

in throughput since 2011. And many market participants say traffic is more

sensitive to transit fees.

The project has taken the four double zones and six by-pass sections and joined them

together to create a new channel, allowing ships to travel in both directions, with the aim of

decreasing transit waiting time, reducing congestion and allowing more vessels to transit

each day.




Since the start of 2015, gross transhipments have averaged 3.69mn b/d of oil equivalent

(boe/d) —comprising crude, gasoline, gasoil, fuel oil, naphtha, LPG and other oil products —

almost unchanged from the 2014 average of 3.7mn b/d but 71pc higher than the daily

average in 2011. Over that period, the largest increases in shipment volumes have come

from crude — mostly northbound — and fuel oil and naphtha, predominantly southbound.

The $8.6bn project should reduce vessel waiting times to three hours from up to 11 as well

as allowing two-way traffic in the canal, but has not raised the maximum passable tonnage.

An inauguration ceremony — with one convoy traveling in each direction — will take place

on 6 August, followed by the official opening on 8 August.

Secretary-general of the International Chamber of Shipping Peter Hinchliffe said:

"Previously, the Suez canal saw a number of delays as a result of an inflexible convoy

system and pilots to guide ships through the channel. But the new flexibility should help

reduce this." He added that, "Over the past 12 months, there have been numerous

complaints by operators about delays in the Suez Canal"

But Hinchliffe, while noting the canal authority's analysis that ship numbers will rise further

with the expansion, is cautious, saying "I expect experience will tell over time as to by how

much numbers will increase and [the expansion's] impact"

Macroeconomic factors and toll levels may be far more influential in determining future

shipment volumes than the introduction of two-way traffic. One freight analyst said the

freight market is underwhelmed by the expansion, emphasising that maximum ship size will

not increase and arguing that journey times will not, in fact, significantly shorten. A hike in

rates would push more traffic to take the Cape route, particularly given the weakness of

bunker prices.

Crude traders are not expecting any changes to the regional market stemming from the

expansion of the Suez Canal. Currently, fully-laden VLCC tankers are unable to sail through

the canal, and must part-discharge cargoes at Ain Sukhna to go through the Sumed pipeline

to Sidi Kerir, reloading at the Mediterranean terminal. The expansion will not allow VLCC

tankers to sail through fully laden, so oil companies will have to continue using Sumed to

transport cargoes larger than 1mn bl from the Red Sea into the Mediterranean and beyond.

They say delays passing through the Canal are not an issue for them.

The naphtha market has never been restricted by the limitations of the Suez Canal, because

of the size of vessels employed, and participants expect trade flows to remain the same. But

there are concerns that transit fees may rise, with a knock-on effect on naphtha traffic. Jet

fuel traders are similarly unmoved, saying increased flows are unlikely. Suez is not a

bottleneck for jet fuel traffic, cargoes being limited by the availability of product.

LPG flows are also unlikely to be affected. Currently, very little passes through the Suez

Canal, since that route saves US cargoes only a day or two compared with the Cape, and

eastbound shipments from North West Europe are now very uncommon. And, with the




expansion of the Panama Canal, charterers looking to save time and money going to Asia

Pacific will use that route instead.

The Suez Canal Authority says vessels with a draught of up to 66ft (20.1m) will be able to

use the new waterway, and LNG carriers over 100,000m³ have roughly the same draught of

12.5m (41ft). But LNG Q-Max and Q-Flex carriers will be still be unable to use the expanded

Suez Canal because of lock size, rather than vessel draught. And LNG shipbrokers add that

the expansion will have a limited impact on transit of LNG carriers smaller than Q-Flex.

[Argus]

New Suez Canal complete, revenues expected to triple by 2023

30/07/2015

The new Suez canal is expected to increase revenues from $5 billion to $15

billion per year by 2023.

The Suez Canal Authority says that, after 11 months of work, Egypt has completed the new

Suez Canal, which will be officially unveiled on August 6, Reuters reports. By allowing full

two-way traffic, the new canal will allow vessels to transit the canal in 11 hours, compared

to 22 hours before, and is expected to boost revenues from the canal from $5 billion per

year to $15 billion per year by 2023.

"We have finished work on time and even before the specified time," said retired Admiral

Mohab Mameesh, chairman of the Suez Canal Authority. "More ships will be able to use the

canal and most importantly for us the time that ships are taking to get through the canal is

being reduced.” The first cargo ships reportedly passed through canal in a test-run last

week.

The Egyptian government says it is also planning to develop an international industrial and

logistics centre near the Suez Canal, which it expects to eventually make up approximately a

third of the country’s economy. Mameesh also said that work on a new side channel to

connect East Port Said to the Mediterranean would begin on August 7, 2015. In May, it was

reported that the newly widened Suez Canal would decrease ship waiting times by 40

percent from 11 hours to three.

[Ship & Bunker]

U.S.: Matson to pay USD 15.4 million for Hawaii molasses spill

30/07/2015

U.S. shipping company Matson, Inc. has agreed to pay up to USD 15.4 million as

compensation for the 2013 molasses spill in Honolulu Harbour, Hawaii’s attorney

general said Wednesday, CNBC reports.




Attorney General Dough Chin called the settlement with Hawaii-based Matson Navigation

Co. one of the largest for an environmental violation in Hawaii’s history. The settlement

includes a combination of cash, restoration efforts and funding for environmental programs,

he said.

Matson is also agreeing to cease its molasses operation in Hawaii and pay for removal of its

molasses tanks and any remaining molasses, Chin said. The company will pay $5.9 million to

the state, and the costs related to ending the molasses operation are estimated between

$5.5 million and $9.5 million, which would put the total settlement amount between $11.4

million and $15.4 million, Matson Inc. said in a statement.

The $5.9 million paid to Hawaii includes money to help replace coral that had been damaged

or destroyed. It will also reimburse the state for cleanup efforts and other costs.

[GREEN4SEA]

U.S. New Georgia inland port to serve the South

30/07/2015

A new inland port is being built by Georgia Ports Authority (GPA) that will serve

as a direct link from the Port of Savannah to North Georgia, Alabama, Tennessee

and parts of Kentucky.

Georgia Ports Authority (GPA), Murray County and CSX Transportation signed a

Memorandum of Understanding to establish the Appalachian Regional Port, which will deliver

goods more efficiently to the GPA's Garden City Terminal, the second busiest container port

on the East Coast behind New York-New Jersey.

"This new inland terminal will open the door for economic opportunity and job creation for

Northwest Georgia and the region," said Georgia Governor Nathan Deal. "By providing a

direct link to the Port of Savannah, the Appalachian Regional Port will create and expand

international markets for businesses, and further the economic success of the Southeastern

US.”

Operated by GPA, the new inland port will sit on 42 acres in Northwest Georgia's Murray

County and feature on-terminal rail. Port officials estimate the CSX rail route will reduce

Atlanta truck traffic by 40,000 moves annually, creating a new intermodal option to and

from the deepwater Port of Savannah. Each container moved by rail to the Appalachian

Regional Port is expected to offset 355 truck miles on Georgia highways and in turn, reduce

carbon emissions.

The facility, which will handle import, export and domestic cargo, will open with an annual

capacity of 50,000 containers. A 10-year development plan will then double that capacity.




This new port will be Georgia's second facility of this kind. In 2013, Governor Deal, Cordele

Intermodal Services and the GPA signed a memorandum of understanding for the Cordele

Inland Port which handles cotton, clay, lumber and other agribusiness exports for customers

in Georgia, Alabama and Florida.

"As part of our ‘Network Georgia’ initiative, we intend to collaborate with communities and

transportation partners for the development of future sites," added James Walters,

chairman, GPA Board. "Our goal is to create the largest inland intermodal complex in the

eastern third of the US, expanding our reach with more economical shipping alternatives for

new and existing customers."

The port is set to open by 2018.

[Port Strategy]

Canada: Port of Trois-Rivières embarks on major expansion

30/07/2015

Expansion at Port of Trois-Rivières makes the port the player to watch in the bulk

trades.

Situated on the St. Lawrence River midway between Montreal and Quebec City, the Port of

Trois-Rivières has in the past few years emerged as a niche player to watch. It does not

attempt to challenge Montreal’s supremacy in container cargo. But it is making the Port of

Quebec take notice as it makes inroads in dry bulk business and embarks on capacity

expansion.

Impressively enough, total volume in bulk, breakbulk and general cargo at Trois-Rivières

soared by 37% last year to nearly 4 million metric tons. This marked the biggest increase by

any Canadian port.

“Seventy per cent of our traffic is international,” underlined Gaétan Boivin, president and

CEO of the Trois-Rivières Port Authority, in an interview. “The rest is mainly shortsea (within

the St. Lawrence Seaway/Great Lakes waterway) – which interests us a great deal.”

Through the years, there has, in fact, been a significant evolution in the main cargoes

entering and departing from the port. The port handled large volumes several decades ago

of pulp and paper and newsprint prior to the decline of the region’s substantial pulp and

paper industry. “Today, there is a more diversified base,” noted Guylaine Genest, a terminal

superintendent for Logistec Stevedoring.

In late June, the federal Transport Canada department announced infrastructure-financing

support for a proposed C$50 million new multi-purpose terminal. Slated for completion in

the spring of 2017, it will boost the annual cargo capacity of the port’s equipment and




facilities from 4 million to 7 million metric tons. The news came on the heels of a record

performance in 2014.

Favorably located in the heart of the port installations, Boivin said “the new terminal will be

able to handle a multitude of projects and all types of traffic: from dry and liquid bulk to

general cargo, dimensional cargo and semi-trailers – and this at both the national and

international trade levels.”

A federal contribution of C$16.2 million to the total infrastructure costs of C$35.2 million has

been allocated through Transport Canada’s Gateways and Border Crossings Fund. The Trois-

Rivières Port Authority is investing nearly $19 million. And private sector investments being

approached have been estimated at $15 million for a terminal that will be the centerpiece of

Phase II of the port’s On Course for 2020 strategic plan.

In essence, the undertaking involves fully rebuilding Pier 13, the construction of a new roll

on/roll off ramp at Pier 10, construction of enclosed storage facilities with a new 23,000

square metre terminal. All told, there will be a 40% increase in outdoor storage space and a

substantial increase in warehouse space.

In 2013, the Port successfully terminated Phase I of the ambitious strategic plan launched in

2008 which markedly reconfigured the waterfront. In return for ceding territory in the

eastern sector of the waterfront, the port was accorded a large increase in operational areas

in the western zone, notably for outdoor storage. This was the beginning of a new era.

In 2014, the Port began work on Phase II with the construction of a new megadome for dry

bulk and further improved its rail network.

[American Journal of Transportation]

U.S.: Portland icebreaker protesters cleared after judge fines

Greenpeace $2,500 an hour

30/07/2015

Authorities have forced protesters in kayaks from a river in Portland, Oregon,

where they were trying to stop a Royal Dutch Shell icebreaker from leaving dry

dock and joining an Arctic oil drilling operation.

Police also tried to lower protesters who were dangling from a bridge into the water below.

Sergeant Pete Simpson said safety was the main priority, and police and coast guard officers

were joined by firefighters and a rope-rescue team.

A federal judge in Alaska had earlier ordered Greenpeace USA to pay a fine of $2,500 for

every hour that protesters continued to block the icebreaker from leaving for the Arctic. US




district court judge Sharon Gleason ruled on Thursday in Anchorage that Greenpeace was in

civil contempt because of protesters dangling off the bridge and impeding the vessel.

Activists suspend themselves from Portland's St. Johns Bridge in an attempt to block Shell's

icebreaker from returning to Alaska. Photo: Greenpeace

Greenpeace USA executive director Annie Leonard said: “Shell is still trying to circumvent

the growing global call to preserve the Arctic, and has turned to the courts for help.” The

activists hung themselves from the bridge on Wednesday at approximately 3am PT, delaying

the departure of the oil company’s 380ft Fennica icebreaker. The vessel was originally

scheduled to leave that afternoon.

The ship set out early Thursday morning local time with police escorts but stopped short of

the bridge and remained idle. The US coastguard told protesters to leave but they continued

to block its path. The ship then turned around and returned to dock. Other protesters,

nicknamed “kayaktivists”, also joined Greenpeace by taking to the water below in kayaks.

Gleason in May granted Shell’s request that activists protesting Shell’s Arctic drilling plans be

ordered to stay away from Shell vessels and beyond buffer zones.

[The Associated Press / The Guardian]




Shell to cut 6,500 jobs as prolonged market downturn looms

30/07/2015

Royal Dutch Shell Plc said it’s preparing for a “prolonged downturn” by cutting

thousands of jobs and slashing billions of dollars in investments over the next

two years. The shares gained the most in almost six months.

The company, which in April said it was confident prices would return to $90 a barrel in

three years, on Thursday said that “today’s oil price downturn could last for several years.”

Shell is cutting 6,500 jobs this year and plans to reduce capital investment by $7 billion, it

said in a statement.

Shell joins BP Plc and Chevron Corp. in cutting costs as the world’s biggest oil producers

grapple with a 50 percent slump in crude prices in the past year. They are reducing jobs,

deferring projects and selling assets to strengthen their balance sheets and maintain

dividend payouts.

“Shell is highlighting the lower for longer oil price scenario and setting up their business to

deal with that,” said Aneek Haq, head of oil and gas at Exane BNP Paribas in London.

“They’ve now gone further than their peers on cost cuts in this scenario.”

The company’s B shares, the most widely traded, rose as much as 4.3 percent, the biggest

intraday gain since Feb. 3, and were trading up 4.1 percent to 1,850 pence as of 11:48 a.m.

in London. The stock has dropped 17 percent this year.

Challenging times

Crude prices have been slow to recover from six-year lows earlier this year as the U.S.

produces near the fastest rate in three decades and leading members of OPEC pump at a

record pace. Brent entered a bear market again this month and traded at $54.22 a barrel at

11:27 a.m.

“We have to be resilient in a world where oil prices remain low for some time,” Shell Chief

Executive Officer Ben Van Beurden said in the statement. “These are challenging times for

the industry, and we are responding with urgency and determination.”

Shell, which is buying BG Group Plc for more than $70 billion, also reported a 38 percent

decline in second-quarter adjusted profit.

The BG acquisition, to be completed by early next year, will give Shell deepwater assets in

Brazil, consolidate its position in Australia’s gas industry and allow greater participation in

the U.S.’s emerging LNG export industry. Yet oil’s slump means LNG rates are also declining

because most contracts are linked to the price of oil.




The BG purchase would be accretive to cash flow at $67 a barrel in 2016, according to the

CEO, who said the deal works even at the current oil price.

Cutting costs

Shell plans to reduce operating costs by $4 billion this year, before making further cuts in

2016. The Hague-based company employs about 94,000 people in more than 70 countries

and territories, according to its website.

“After six months of relative inaction versus industry peers, Shell now looks to be responding

to the low oil price environment,” said Alastair Syme, oil analyst at Citigroup Inc. in London.

Shell said the combined investment by the enlarged group with BG next year would reach

$35 billion, down from the $40 billion it announced three months ago.

Oil explorers are seeking large discounts from contractors and sending some projects back

to the drawing board to find cheaper ways to build them after crude prices crashed.

Chevron this week said it’s eliminating 1,500 jobs to curb spending by about $1 billion.

ConocoPhillips has said it’s continuing layoffs while it, too, strives to slash $1 billion in

spending over two years.

Beating estimates

Job cuts at exploration and production companies have accounted for roughly 10 percent of

the more than 150,000 layoffs globally throughout the industry, according to Graves & Co.,

a Houston-based adviser that has closely tracked the cutbacks. That compares with more

than 100,000 eliminated from service providers and drilling contractors.

Shell reported second-quarter profit adjusted for one-time items and inventory changes

dropped to $3.8 billion from $6.1 billion a year earlier, according to a statement on

Thursday. That beat the $3.4 billion average estimate of 16 analysts surveyed by

Bloomberg.

Its dividend commitment will remain unchanged at $1.88 per share this year, with at least

that amount paid in 2016.

[Bloomberg]

Indonesia imposing oil export ban

30/07/2015

Sweeping changes to Indonesia’s oil regulatory framework are likely to

massively impact Southeast Asian tanker trades. Jakarta has moved today to




make all contractors working on Indonesian blocks to not export the oil, but to

send it to the domestic market.

The move comes as a quickfire method designed to halt the sliding of the local currency, the

rupiah, which has been in freefall in recent weeks.

IGN Wiratmaja, the director general for oil and gas at the Energy and Mineral Resources

Ministry, said his office was now assessing the possibility of revising the current production

sharing contract (PSC), particularly regarding sales destinations.

“We are still assessing the impacts of the changes, including on the current contracts. The

volume [of oil sold overseas] is quite significant and we are expecting a strengthening of the

rupiah [if it is sold domestically],” Wiratmaja said.

Approximately 111m barrels out of the 290m barrels of oil and condensate produced in

Indonesia last year was shipped overseas.

Another law change that will make energy transactions in Indonesia far more tricky is that

all transactions within Indonesia now have to be made with the rupiah, an attempt by the

government to try to control the rupiah. Penalties for those that fail to comply with this new

currency ruling include stiff fines or even a one-year jail sentence.

International businesses operating in Indonesia are not happy with this ruling given the

volatility of the rupiah and the high interest rates for loaning the currency – 14% compared

to 6.5% for the US dollar.

In the marine space, all tenders now have to be submitted with prices and rates in rupiah.

[Splash 24/7]

India plans to overhaul rivers for shipping

30/07/2015

The Indian government’s ambitious plans to develop 101 rivers into an

integrated Inland Water Transport (IWT) system have triggered fierce debate.

Transport and shipping minister, Nitin Gadkari, recently introduced a new National

Waterways Bill 2015 in the Lok Sabha, the lower house of parliament, in an attempt to gain

legislative sanction for the initiative.

According to the government, India’s waterways are underdeveloped. Its share of overall

cargo transport remains abysmally low: 0.4% compared to 42% in Netherlands, 8.7% in

China and 8% in the US.




The country has over 14,500 kilometres of inland waterways — comprising rivers, lakes,

canals, creeks and backwaters. Promoting waterways will reduce pressure on other already

congested and more expensive modes of transport, the government says. Developing an

integrated network of rail, road and waterways could also significantly boost India’s

economy.

The initiative will open up business opportunities and generate employment in the area of

dredging, barge construction and operation and terminal construction.

Five stretches of river have already been declared as national waterways, including the

Ganga-Bhagirathi-Hooghly river system (Allahabad-Haldia-1620 km); the Brahmaputra River

(Dhubri-Sadiya-891 km).

President of the Federation of Indian Export Organisations (FIEO), M. Rafeeque Ahmed,

says rivers are a vital form of transport even in the most advanced economies and using

inland waterways reduces pollution and is cheaper than other modes of transport. “This can

in turn reduce the cost of products by 4-6% enabling Indian products to be competitive in

the global market while bringing down domestic prices,” he says.

However, experts warn that river infrastructure will need a major overhaul. India’s rivers are

currently too shallow for large scale cargo transport. Such navigation, they add, requires a

water depth of at least three metres while most Indian rivers, including large stretches of

the Ganga, designated National Waterway No. 1, are no more than two metres deep.

“In such a scenario, processes like dredging and construction of waterways can be ruinous

for the health of rivers,” explained water conservationist Himanshu Thakkar of the South

Asia Network on Dams, Rivers and People.

According to Thakkar, none of the existing five national waterways are working as planned,

so the government should proceed with caution.

River-linking controversy

What also augurs ill for the IWT project is that it is intrinsically tied up with the

government’s controversial river-linking project which will lay the groundwork for the

former.

The river-linking plan involves a large-scale engineering intervention to shift water from the

Brahmaputra and lower Ganga basins in eastern India to water scarce regions of western

and central India through the construction of reservoirs, dams and over 14,000 kilometres of

canals. The project aims to balance uneven water flow in different river basins. The project

has invited the wrath of environmentalists who fear that linking rivers would lead to an

irreversible ecological disaster.




The large scale movement of cargo, ships and barges can only happen once inter-river

connectivity and routes are in place.

Conservationists point to the government’s nonchalant attitude towards river dynamics while

planning such projects. “Every river has its own character which needs to be respected. To

give just one example, mixing of water from one polluted river with another less polluted

river can have serious consequences corrupting the entire system,” warned Rajendra Singh,

known as India’s ‘waterman’ for his water conservation efforts.

Singh fears that extensive dredging of rivers to make them navigable will exacerbate

existing pollution. “A fully integrated water transport with the inter-modal transport system

requires addressing complex technical as well as infrastructural challenges in order to

improve the inland waterway system and to integrate it with land based transportation. Are

we prepared for this?”

Religious heads have already expressed their unease over the country’s holiest river Ganga

being used as a waterway for goods and people. Their concerns centre around the need to

build more barrages to maintain water levels, which they say adversely affects water quality

and flow. Dams and barrages have already turned the Ganga into a stagnant pond, they

say.

Rivers running dry?

India’s water situation is already precarious. With the twin pressures of a growing population

and unregulated urbanisation wreaking havoc on river systems, groundwater levels are also

plummeting at an alarming rate. Even bore wells in rural areas are drying up affecting the

livelihoods of millions of farmers.

“The IWT vision is dependent on the availability of sufficient water in the canals perennially

to maintain a waterway. In drier months, this can be a challenge as it can pressurise the

water grid skewing river flow and indeed the entire river system,” explained Shashank

Shekhar, assistant professor at Delhi University’s department of geology.

River flow, added Shekhar, is vital for maintaining the river regime. It sustains aquatic life

and vegetation, recharges groundwater, controls salinity and facilitates navigation.

There are also concerns about the project’s wider ecological footprint. According to Shekhar,

the transfer of enormous amounts of water will inundate forests and land for reservoirs and

the weight of billions of litres of water has the potential to cause earthquakes in the

Himalayan region.

In his opinion, it would be more prudent for the government to carry out the experiment on

a smaller scale first to test its feasibility and viability. “This big bang development approach

is fraught with risks,” said Shekhar.




There is also a high risk of water logging and soil turning saline in regions where the river

water is diverted to according to the expert.

Linking water basins which lie at different elevations can lead to flooding. Besides, new

constructions canalize the river altering its natural flow. River Gandak in Bihar is a perfect

example of where canal-linked irrigation systems have lead to huge silt deposits which

exacerbate floods during the monsoon.

Conflict brewing

The IWT project can also potentially create interstate rancour say campaigners. River

linkages and water sharing arrangementswill have to be worked out between states.

There is already simmering tension between Punjab, Haryana and Rajasthan over sharing

the water from the Ravi-Beas rivers; in the south, Kerala, Karnataka, Tamil Nadu and

Puducherry are locked in an acrimonious battle over the Cauvery’s waters.

Nor can the global ramifications of the plan be overlooked. India shares the water of the

Indus River with Pakistan, the Teesta with Bangladesh, the Brahmaputra with China and the

Mahakali River with Nepal.

These countries are likely to view India’s plans to transfer river waters with suspicion and as

a potential violation of their own water rights. Over 20 million Bangladeshi farmers rely on

water from the Brahmaputra and the Ganga for their daily sustenance. So the stakes are

high.

[The Third Pole]

ClassNK releases Guidelines for CNG Carriers

30/07/2015

ClassNK has released its Guidelines for Compressed Natural Gas Carriers.




Whilst LNG has been employed mostly in large scale gas fields due to the substantial

investment required in liquefaction and storage plants, growing demand for natural gas is

generating increased expectation for small to medium scale gas field development and the

study of different modes of natural gas transportation at sea. One of these methods is via

CNG carriers in which natural gas is stored compressed in the cargo tanks onboard for

transportation. The investment for the entire project can be reduced since no liquefaction,

storage, or regasification plant is needed making CNG suitable for short distance

transportation.

Currently, the International Code for the Construction and Equipment of Ships Carrying

Liquefied Gases in Bulk (IGC Code) outlines safety requirements for LNG carriers. However,

there are no applicable international rules for CNG carriers that take into account the

hazards associated with the handling and transport of CNG. Utilizing its wealth of technical

expertise and extensive experience in gas carrier R&D and ship classification, ClassNK has

developed its Guidelines for Compressed Natural Gas Carriers which provide safety

requirements for the design and construction of CNG carriers.

The guidelines consist of safety requirements applicable to CNG carriers based on the IGC

Code as well as additional requirements taking specific hazards arising from the handling of

CNG into consideration.

[GREEN4SEA / ClassNK]

Brazil: Port of Santos’ boom-to-bust is window into what went

wrong in the country

29/07/2015

Santos has always been known as Brazil’s gateway to the world. Now, it’s also a

window into what went wrong in Latin America’s biggest economy.

Exports from Santos have tumbled as demand from China sags. Companies betting on a

boon as massive offshore oil finds were developed are now scaling back after Petroleo

Brasileiro SA said it will cut investments by a third. And real-estate prices are falling as

entire buildings stand vacant.

Nowhere, perhaps, are Brazil’s unfulfilled promises as an almost superpower more apparent

than Santos, Latin America’s busiest port. About an hour outside of Sao Paulo, Santos

benefited from the dual boon of the commodities supercycle and the government spending

spree it afforded. Now, it’s feeling the double blow of a corruption scandal at Petrobras and

Brazil’s worst recession in a quarter century.

“There’s a feeling that Santos, just like Brazil, has missed its opportunity and the golden

years have passed us by,” said Karla Simionato, coordinator of economic science at the

Catholic University of Santos.




Only one of the three towers that Petrobras planned to build for a new 25,000-square-meter

office complex in Santos was completed, and the other two are on hold. Local businesses

that flocked to the industrial neighborhood, driving up property prices in anticipation of an

influx of 6,000 workers, are now closing or never opened at all.

Buyers’ remorse

“Lots of owners bought land for restaurants and regret it,” said Paulo Latrova, head of the

shop-owners association in Santos. “Wherever Petrobras set foot, they brought progress and

investment. That’s not happening here.”

Petrobras didn’t respond to requests for comment, and the Santos mayor’s office declined to

comment.

Back when China’s appetite for commodities seemed endless and Petrobras was the darling

of global investors, companies from Eni SpA’s Saipem unit to Iesa Oleo & Gas SA announced

plans to set up operations in or near Santos. Sitting at the crossroads between Brazil’s

biggest-ever oil discoveries in an offshore area known as the pre-salt and the nation’s

agricultural heartland, Santos’s exports almost doubled in six years, peaking at $5.93 billion

in 2012, according to Brazil’s Trade Ministry.

How times have changed. Revenue from shipments are down 20 percent during the first six

months of 2015 after falling 25 percent last year, the data show. Unemployment in Santos

rose to 12.2 percent in May, up more than 2 percentage points from four years earlier,

according to Santa Cecilia University. And falling demand for large office spaces has driven

down prices 3 percent from December, said Robert Zarif, an economic consultant who tracks

the local market.

Analysts in a central bank survey published Monday forecast Brazil’s economy to shrink 1.76

percent this year.

Neymar, Pele

“We can blame Santos’s situation on two factors: the effects of Petrobras reducing its

investments and the economic recession,” said Carlos Eduardo Lima, president of public

works at Brazil’s construction industry confederation. “It’s a perfect photograph of Brazil’s

slowdown.”

Better known as the town where soccer star Neymar Junior got his start and where sports

legend Pele spent the bulk of his career, Santos is one of Brazil’s oldest cities. Founded in

1546, the city center is lined with cobble-stone streets and colonial-era buildings. Three

blocks from the Petrobras tower sits another office project, this one finished but mostly

unoccupied. When Cyrela Brazil Realty SA broke ground on the project in 2010, it declared

Santos “the center of excellent opportunities.”




‘Even worse’

Neymar’s old team, Santos FC, was a major selling point back then. At the time, Santos FC

was on its way to becoming the South American club champion a year later. Now, it’s on the

verge of dropping out of the Brazilian National League’s top division. Today, only three of

the 212 offices in the building have been rented. Cyrela said in an e-mail response to

questions that it sold all the units and renting is the responsibility of the owners.

“When we bought office space we had the allure of Petrobras and pre-salt,” said Edson

Delgado Boschilia, administrator at real-estate company Infinity Holding. “Since April,

nobody is looking to rent an office from us. And if you don’t have interested renters, the

chances of selling are even worse.”

[Bloomberg]

Uruguay earmarks $390 million over four years for LNG

terminal project

29/07/2015

Uruguay has budgeted $390 million over the next four years for investment in an

LNG regasification terminal to help diversify energy supplies, which is now

heavily reliant on imported oil and local hydropower.

President Tabare Vazquez announced the spending Monday as a part of a record $12.37

billion investment in infrastructure projects between 2015 and 2019. “The investment is

needed to sustain the growth that the country has had in the last 10 years,” Vazquez said,

according to a statement. “Uruguay will continue to grow.”

Of the spending, $4.23 billion will go to energy projects, mostly for building up power

generation and transmission capacity, including with biomass, solar and wind plants,

according to a copy of the spending plan. The state will finance 66% of the spending, while

the rest will come from the private sector.

Uruguay plans to invest a total of $1.1 billion in the regasification terminal, and has already

spent $710 million, with the goal of starting to receive LNG cargoes by the end of 2016. The

state has hired a consortium of France’s GDF Suez and Japan’s Marubeni to build and

operate the terminal, which will have 10 million cubic meters/day of send-out capacity. Of

the capacity, Uruguay will consume less than 50% during the first three to four years after

operations begin. This leaves open the possibility of selling the surplus supplies to Argentina

and Brazil.

[Platts]




Brazil: Vale resumes Amazon rail expansion after suspension

29/07/2015

Brazilian miner Vale SA said on Wednesday it had resumed work on the

expansion of a rail line which is part of its giant Carajas iron ore project in the

Amazon after a court suspension was lifted.

Work had been partially stopped since July 9

due to the potential impact on a nearby

indigenous community. Construction was

resumed on July 27, after the court lifted the

suspension, Vale said in a statement

S11D, as this project is unceremoniously

known, is an open-cast iron ore mine being dug

out of this corner of the Brazilian Amazon, in

the state of Para. Brazil’s mining giant, Vale,

says the mine was designed for minimum

environmental impact and maximum

profitability. It is to start operating next year

and by 2018 will be producing nearly 100 million

tons annually of some of the purest iron ore in

the world — a lifeblood for Brazil’s pallid

economy.

But environmentalists argue that S11D could destroy rare savannah ecosystems found in

two lakes on top of rich iron ore deposits. Dozens of caves that potentially contained

evidence of ancient Amazon habitations have been lost. This grandiose $17 billion project is

emblematic of a very contemporary, Brazilian dilemma: Can the country develop its rich

natural resources without causing irreparable damage to its environment and history?

“I totally disagree when someone says it is not possible to develop while maintaining

preservation and sustainability,” said Jamil Sebe, Vale’s director of ferrous projects for the

north of Brazil, who is in charge of the mine. Sebe said he had been working a quarter of his

44 years on the project, which employed innovative mining and engineering techniques

imported from Canada and Australia to reduce impact and costs. “This is the year to put it

all together,” he said.

S11D is just 30 miles south of the world’s biggest iron ore mine, also run by Vale in the

same Carajas National Forest. The company’s activities here, which include copper,

manganese and gold, take up 3 percent of the 1,591 square miles of this national park, as

rich in nature as it is in minerals.

“Vale wants to mine everything. It will depend on the Brazilian government environmental

organs to protect this area,” said Frederico Martins, an environmental analyst at the




government’s Chico Mendes Conservation and Biodiversity Institute and manager of the

Carajas National Forest. “There is a lot of iron ore there.”

A swath of forest cleared for development of Vale’s mining project known as S11D. Brazil’s state-controlled mining giant, Vale, says the mine was designed for minimum environmental impact and maximum profitability. (Bonnie Jo Mount/The Washington Post)

Rare plants, ancient human artifacts are in the way of excavating equipment. Giant trucks transport iron ore at Vale’s Carajas Mine. It is the largest iron ore mine in the world. (Bonnie Jo Mount/The Washington Post)




Controversy centers on two lakes just east of current construction but on top of part of the

iron ore seam. Government agencies have negotiated a 546-yard exclusion zone around

them as protection — but it may not be enough.

A ‘metallic savannah’

It took three hours to drive along treacherous dirt roads that cross the forest to reach Guitar

Lake, the larger of the two. En route, a wild boar fled across the track, the 4x4 inched

around a long, black snake, and forest guide José da Costa paused under a harpy eagle’s

nest the size of a bathtub as the bird’s head bobbed over the rim.

Guitar Lake’s expanse was a world apart from the dense, tangled forest around it — a

separate ecosystem set in a “metallic savannah” of dark rocks and scrub. Six-inch-long, vivid

green grasshoppers lounged in the sun. Caimans and turtles roamed through the lake. More

than 40 plant species — among them Ipomoea marabaensis, with a lilac flower — are found

only here in Carajas’s savannahs, with its environment formed by the very rocks, rich in iron

ore, that endanger their survival.

In the distance, the hum of the diggers was audible. Last year, local university students

formed an “SOS” on rocks at the lakeside to protest the damage they argued Guitar Lake

will suffer once mining and the daily explosions involved begin in earnest.

“If it survives, it will lose all its context,” said da Costa, who participated. “You won’t have all

this life.”

Vale is discussing a reduction of the exclusion zone with the Brazilian government

environmental agency. Martins said any reduction would “compromise the existence of the

lagoon.”

Iron ore was first found in Carajas in 1967 by a Brazilian geologist prospecting manganese

for U.S. Steel. In 1985, production began at Serra Norte, now the biggest iron ore mine in

the world. A city of 180,000, Parauapebas, grew up nearby. Vale and its contractors employ

46,000 people in Para.

State capitalism and protection go hand in hand here. In 1998, the Carajas National Forest

reserve was created as much to isolate the mine area from squatters as protect it from the

deforestation that has devastated so much of this southern corner of the Amazon.

“If it wasn’t for the mining, this could have been worse,” Martins said. Access is controlled

by Vale and the Chico Mendes Institute.

‘Best iron ore in the world’

The Serra Norte mine is an enormous industrial complex of pits, conveyor belts and

processing units sunk deep into the forest. Everything is a dark, rusty red: the metal and the




earth. On a recent morning, mine operations manager Evandro Euzébio stood at a lookout

overlooking the oldest of the mine’s five pits. Hundreds of yards below him, giant trucks

crawled up the dirt roads, each one carrying up to 400 of the 120 million tons of ore Vale

produces there each year.

“It is the best iron ore in the world,” Euzébio said.

Ore is transported 554 miles by a single-track train line to the port of Sao Luis in Maranhao

state. From there, cargo ships sail it to China, which imports half of what Vale produces

every year. The railroad line is being duplicated to handle S11D’s production. Iron ore prices

have halved to about $55 a ton over the last year, but Vale insisted the project was still

viable.

“Nobody rips up money,” said the Vale North ferrous director, Paulo Horta.

S11D’s construction, with expansion of the port and train line, employs 30,000 workers.

When the mine is functioning, 2,600 will work there, with 7,000 in related service industries.

A new town, Canaa dos Carajas, has grown up nearby.

Instead of the trucks used at Serra Norte, five miles of conveyor belts will lift the ore out of

the pits to processing plants situated outside the forest area. The plants are made of

modules, fitted together like Lego pieces, a technique adopted from the oil industry that

requires fewer workers on site. German, Canadian and Australian engineering companies

designed much of the equipment, but most was fabricated in China. Brazil makes the raw

materials but not the machines.

The S11D seam alone is over five miles long. “It is the biggest seam, the biggest reserve

that Vale has. In the future it is a platform for growth for the company,” Sebe said. But it

will also consume a part of Brazil’s past. Archaeologists say that caves in the area hold clues

to Amazon habitations that were unknown until the 1980s.

Evidence from those caves suggests that nomadic peoples lived in the Amazon up to 9,000

years ago, cultivating manioc and the acai fruit.

“They managed to cultivate the forest without knocking it down,” said Marcos Magalhães, an

archaeologist from the Emílio Goeldi Museum in Para’s state capital, Belem, who has studied

caves in the area. “The Amazon was the Garden of Eden.”

In one of the caves above the lake, shards of ceramics lay scattered on the floor. From

photos, Magalhães said these probably dated from another occupation by nomadic

indigenous groups around 500 years ago, before Brazil’s colonization by the Portuguese. The

cave will be surveyed this year and is not marked for destruction. But of 187 caves like it in

Serra Sul, 40 will suffer “irreversible impact,” said Leanardo Neves, a Vale environmental

and sustainability manager. Magalhães and his team surveyed and removed artifacts from

five before they were knocked down.




Vale plans to compensate for every cave destroyed by protecting two caves in a similar,

neighboring area called Serra de Bocaina. Magalhães’s team had yet to study any of the

caves there. But it did find traces of a prehistoric mine near Serra Sul, where rocks were dug

for pigment. “The story of the region,” he said. “Its destiny was always mining.”

[Reuters / The Washington Post]

Spain: New investment in ports could top €1.6 billion

29/07/2015

In Spain, several ports have received a large number of requests for concession

extensions in exchange for the promise of additional investment in existing

installations.

The process is linked to changes in the Ports and Merchant Marine law made in 2014.

Concessions can now be lengthened up to 50 years, bringing them into line with many port

operators in the rest of Europe. Previously, Spain insisted on a maximum concession period

of 35 years.

In total, some 323 requests were submitted by terminal operators for extensions to their

basic concessions and a further 34 requests for simple time extensions. The combined

investment that could be generated is in the region of €1.651bn, of which €100m is in the

form of reduced tariffs for users. In total, 28 port authorities are involved.

In terms of port authorities, Vigo, with 41, has received the most requests, followed by

Barcelona and Huelva, with 23 each. Thereafter comes Tenerife with 20, and Bilbao and Las

Palmas with 19.

[Port Strategy]

Korean shipyards empty

29/07/2015

The three largest ships yards in the world are in Korea and they are struggling for

work and losing lots of money.

Daewoo Shipbuilding and Marine Engineering, Samsung Heavy Industries and Hyundai

Heavy Industries (HHI) cite plummeting oil prices and delayed offshore projects. The yards

are reporting significant losses in second quarter 2015 and Daewoo leads the way reporting

a 3.03 billion KRW ($2.62 billion) loss. Samsung reports1.55 trillion KRW loss while Hyundai

says it lost 171 billion won. The combined losses is the 4.75 trillion KRW or $4.1 billion.




Daewoo says delays in the construction of gas oil rigs as well as lower freight rates in the

cargo markets have impacted revenues. In 2010, Korean yards began investing heavily in oil

and gas rigs in an effort to challenge competition with the Chinese yards. At that time, oil

prices were about $100 per barrel and the industry was booming.

The 2nd quarter losses for the three Korean giants were Daewoo’s 2015 Q2 revenue fell

63.1 percent, Samsung’s revenues fell 44.8 percent, and Hyundai posted a 240 KRW loss

down from last year’s loss during the same period of 489 KRW.

[MarEx]

Boxship operators getting a taste for South-East Asia

29/07/2015

Intra-Asian container trade has grown rapidly in the last five years, by an

estimated average of 10% per annum, to reach 48m TEU in 2014 (more than

25% of global container trade).

Around 60% of intra-Asian trade involves China, and Chinese operators play a major role in

the provision of intra-Asian liner services. This year, Chinese capacity deployed on Far East-

SE Asia routes has risen significantly.

A varied menu

Total containership capacity deployed on intra-Asian routes reached 1.7m TEU at the start of

July 2015, up from 1.1m TEU at the start of 2011. Vessel capacity deployed on intra-Asian

trades by Chinese liners has also increased quickly, to total 0.40m TEU at the end of 1H

2015, more than double the total at start 2011. Together, the capacity currently deployed by

Chinese operators accounts for 24% of total intra-Asian deployed capacity.




Growth has been very firm this year, with Chinese operated boxship capacity rising 13% in

1H 2015. Chinese liners operate services on a variety of intra-Asian routes, with 40% of

capacity operated on coastal Chinese trades, with another 34% on Far East-SE Asia services

and 21% on China-Japan-South Korea routes.

A new favourite?

However, the rapid growth in deployment by Chinese liners this year is almost entirely due

to a 55% increase in vessel capacity deployed on Far East-SE Asia routes. This growth has

been supported by increasing bilateral trade between China and SE Asian countries.

Following the introduction of the China-ASEAN Free Trade Agreement in 2010, China’s

exports to ASEAN grew on average by 14% pa in 2011-2014, while imports from the region

grew by 9% pa in the same period.

Prompt service

Chinese liners have also been expanding their Far East-SE Asia services following the

introduction of the government’s “One Belt, One Road” strategy at the end of last year. For

example, CSCL has improved its ASEAN service coverage by calling at more ports in Vietnam

and Thailand, and launching direct services from China to Indonesia and Myanmar.

Meanwhile Minsheng Shipping, which usually focusses on the domestic market, has co-

operated with foreign partners to launch SE Asian services this year.




Saving some room for later?

While trade volumes between China and ASEAN are continuing to grow strongly (the value

of Chinese exports to ASEAN rose by 9.5% y-o-y in 1H 2015, compared to 1% growth in

total Chinese exports), the relatively low overall trade volumes and port limitations mean

that small container ships still dominate deployment on these routes. Most vessels deployed

on Far East-SE Asia routes are below 3,000 TEU (with an average size of c.1,700 TEU),

compared to an average size of c.3,500 TEU on coastal Chinese routes.

The continuation of firm trade growth between China and ASEAN, even while China’s trade

with some other regions has come under pressure this year, suggests that this remains a

key driver of intra-Asian (and global) box trade growth. Far East-SE Asia routes in particular

therefore may well offer further significant opportunities for Chinese operators.

[Clarkson]

Australia: Hutchison Port Holdings to cut 40% of its staff

29/07/2015

Local media in Australia is reporting Hong Kong’s Hutchison Port Holdings (HPH)

is cutting more than 40% of its staff Down Under.

HPH is understood to be exasperated at the power and influence of the Maritime Union of

Australia. 96 people out of its 222-strong workforce at Port Botany and Brisbane will be

made redundant, the Australian Financial Review claimed, citing a memo it had obtained.

Warren Smith, the MUA’s assistant national secretary, blasted HPH’s plans, claiming the

operator was looking to weed out union “troublemakers”, ranking employees “like animals at

a fair”, with union delegates targeted for redundancy.

In a bulletin to members, the union vowed to fight “as vigorously and for as long as it takes

to ensure union-busting plans for workers and negotiated outcomes around automation are

met.”

HPH declined to comment on the plans.

[Splash 24/7]

New wave of neo-Panamax ship orders expected

29/07/2015

The third set of Panama Canal locks is scheduled to open in April 2016, some 18

months after the original October 2014 target date.




With the canal expansion project

reaching 91% completion in this

month, and with less than one

year to go before the expected

opening, a large-scale

redistribution of tonnage appears

on the horizon. While this will

help to absorb the excess of

8,000- 10,000 teu ships that

have been pushed out of East-

West routes by ULCS

newbuildings, it will also drive

many traditional maxi-panamax

ships out of business.

Roughly half the maxi-

panamaxes of 4,800-5,300 teu

currently in service are employed

on Panama routes, and most of

them would be made redundant.

The canal expansion project was

first announced in April 2006 and

the preliminary maximum

dimensions as published by the

Panama Canal Authority (ACP)

for neo-panamax vessels state an

approximate Loa of 366 m, a 49

m beam and a 15.20 m draft

(Tropical Fresh Water).

Based on Alphaliner’s fleet

database, there are 190 neo-

panamax containerships currently

in service, with another 125 units

on order. These neo-panamax

ships range in size from 8,600

teu to 14,000 teu.

A further 473 sub neo-panamax ships of over 299 m in Loa, with beams of 17 or 18 deck

rows and capacities of 6,000-11,000 teu, will also compete with the 19 row ships on Panama

routes, once fitted with the proper bridge and mooring equipment compatible with the ACP

requirements (the latest ones are however equipped ex yard).




[Alphaliner]

Philippines: Five groups interested in $420 million Davao Sasa

port project

29/07/2015

A $420 million project to modernise a port in the southern Philippines has

attracted interest from five groups, a government official said on Wednesday,

with bids due to be lodged by the fourth quarter.

The government aims to award the contract in April to develop, operate and manage the

Davao Sasa port over a 30-year concession period. It will be the first public-private

partnership project award by the government on Mindanao, an island blighted by a long-

running Islamist militant insurgency.

The five groups that have submitted pre-qualification documents included Philippine

conglomerate San Miguel Corp partnered with Dutch firm APM Terminals, Cosette Canilao,

head of the Public-Private Partnership (PPP) Centre, told reporters. Asian Terminals Inc has

teamed up with DP World from the United Arab Emirates in submitting pre-bid documents,

Canilao said.

Other firms that submitted qualification papers were the Philippines’ International Container

Terminal Services Inc (ICTSI), France’s Bollore SA and Singapore’s Portek International,

Canilao said.




An ICTSI official confirmed the company’s participation in the pre-qualification process, while

San Miguel officials were not immediately available for comment. The government PPP

programme aims to upgrade ageing infrastructure in one of Asia’s fastest growing

economies.

The Davao region exports bananas - the Philippines is the world’s second largest exporter of

the fruit.

The government has so far awarded 10 infrastructure projects worth 168 billion pesos ($3.7

billion) since launching the PPP programme in 2010. Eleven other projects worth $11.9

billion have been rolled out.

[Reuters]

Singapore: Toll group sets up logistics hub at Tuas mega-port

28/07/2015

Australian logistics provider Toll Group is to build a hub in Singapore to capitalise

on the new mega-port coming to the western part of the city-state.

Singapore will shift its port operations to Tuas in the next decade. Photo: IHS

On 27 July, Toll, now part of Japan Post, said it would build a 100,000 m² Toll City logistics

hub in Singapore's Tuas industrial estate, where the new port is scheduled to open in about

2021.

The hub, to cost SGD228 million (USD166 million), will open in mid-2017. The five-level

facility will have advanced automation systems to improve productivity and operating




efficiency for Toll's customers in Singapore and in the region. These include high-speed unit

picking, voice picking, and intelligent conveyor systems.

Toll Global Logistics CEO Chris Pearce said the development was a key part of Toll's strategy

to expand its business in the region. "The size and scope of this investment is a testament

to Toll's intent to achieve supply chain excellence in Asia-Pacific for its customers," Pearce

said.

"Toll City will redefine warehousing solution options for its customers through leading-edge

technology and innovation in a world class facility. We will be ready to increase Toll's

productivity and meet warehousing capacity demand in a region that is set to become one

of the largest economic blocs in the world."

The new mega-port will handle up to 65 million teu /year, double Singapore's current

capacity.

[IHS Maritime 360]

Ancient Vikings settled Greenland for the ivory

28/07/2015

New archaeological research hints at a new reason for Vikings’ Greenland

occupation.

A young male walrus sits on an ice floe off Spitsbergen, Norway. Photo by Steven

Kazlowski/SuperStock/Corbis

After Erik the Red killed his enemies in Iceland, he found himself banished and sailing

westward. Around 985 CE, Erik settled his family on an unexplored island, and, in what is




widely regarded as the first act of real estate branding, named the place “Greenland,”

hoping to attract other Vikings with the implicit promise of rich farmland. But as

archaeologists are now learning, Erik may have been better off naming the place

“Walrusland.”

Scholars have long thought that Erik’s branding deception worked, and that Vikings flocked

to Greenland to set up farms—even though the growing season is short and raising livestock

difficult. Archaeologist Thomas McGovern and colleagues, however, are testing a new idea:

that Vikings settled Greenland to provide European markets with luxury trade goods such as

furs, eiderdown, hides, and walrus tusk ivory.

As new research suggests, it does appear that walrus hunting, not farming, was the main

source of prosperity for many of the Vikings—an estimated 3,000 at peak population—who

chose to eke out a living on the farthest fringe of European culture.

Throughout the first millennium CE, European economics went through an important change

as new trade networks across Europe and Asia opened markets for goods of all kinds. And in

the first few centuries after Erik the Red’s westward voyage, the number of ivory artifacts in

medieval Europe blossomed.

The Middle Age ivory trade was incredibly lucrative, but it was not easy money. One

historical source describes a 15-day row in a six-oared boat from the nearest Viking

settlement to the walrus colonies in Disko Bay, on Greenland’s west coast. Even in summer,

the men would have risked hypothermia. With the hunt complete, the hunters would reverse

the journey, now with up to 160 severed walrus heads piled in the boat. (Tusk extraction, it

seems, was easier once the head had rotted for a few weeks.)

Still, the risks had a sizable reward. A document from 1327 CE, analyzed by Christian Keller

of Oslo University, showed that a load of walrus ivory equivalent to 520 tusks was enough to

pay six years’ worth of Greenland’s taxes to their ruler, the king of Norway. That much

walrus ivory had the same value as 780 cows or 60 tonnes of fish.

During the Viking ivory trade’s boom years, Europe’s economy was based on luxury goods,

with elites and nobles trading high-prestige gifts, says McGovern. But then, in the High

Medieval period (about 1200 to 1400 CE), things gradually changed. The European economy

transitioned from one based around luxury goods to something more akin to a modern

economy, where bulk goods like wool and fish are sold for profit.

“The Greenlanders were left stuck in the old economy, they were left producing for the

prestige goods market,” says McGovern. As European markets for bulk goods expanded and

fashions moved away from ivory decorations, the incentive to visit Greenland may have

disappeared.

This was borne out in the 1300s when the number of Greenland ivory artifacts in Europe

declined. Adding to ivory’s fall from fashion, in the mid-1300s Greenland’s economic




connection to Europe was damaged when Norway was ravaged by the Black Death, leaving

few people able to make the long voyage.

The remains of a Viking settlement in Greenland. Photo by Wolfgang Kaehler/Corbis

By around 1350 CE, the settlement closest to Disko Bay was abandoned. By the mid-1400s,

Europeans deserted the rest of Greenland as well. Despite Erik the Red’s deceptions,

Greenland was never very good for farming. But with European economics changing around

them, so too went its appeal for Greenland’s Viking walrus hunters.

[Hakai Magazine]

Egypt to increase access to East Port Said with new channel

28/07/2015

Egypt plans to allow smaller vessels in the Mediterranean direct access to East

Port Said around the clock instead of just eight hours a day by building a side

channel near the Suez Canal, which will speed up shipping movements in the

area.

Klaus Holm Laursen, managing director of Suez Canal Container Terminal (SCCT), the

company partially financing the project, told Reuters on Tuesday the project would allow

vessels to enter and exit East Port Said, and divert traffic from the canal’s entrance.

SCCT is 55 percent owned by APM Terminals, part of the Maersk group, and is paying $15

million into the project which a senior Suez Canal Authority source said would cost $60

million to build. “The waterway will benefit the entire east port, not just SCCT. You can’t




have a seaport without having any ships; it’s like having an airport without a runway,”

Laursen said.

Egypt plans to build the new side channel after it unveils a new Suez Canal next month and

hopes it will be one of the first projects in a planned international industrial and logistics hub

to be built around the canal.

A Suez Canal Authority source told Reuters the new channel would be 9.5 km (6 miles) long,

18.5 metres deep, and 250 metres wide and take around seven months to build. Currently

every vessel that comes through East or West Port Said has to be coordinated with the Suez

Canal convoy.

“Since Egypt wants to have as many ships as possible in the convoy because the Suez Canal

is where it makes most money, this does not leave many hours free for sailing in and out of

the East or West ports,” Laursen said.

SCCT’s agreement with the Egyptian government was updated in 2007 to require the

company to pay $15 million into the side channel’s construction. SCCT paid half the amount

in 2010 and will pay the rest upon the project’s completion, which was initially scheduled for

2012, Laursen said. An APM Terminals spokesman in The Hague confirmed the terms of the

payment.

[Reuters]

Australia: Port of Townsville announces $55 million upgrade

28/07/2015

The Port of Townsville in northern Australia has announced a $55 million

investment upgrade Berth 4 of the port and double capacity.

“Townsville is northern Australia’s largest general cargo and container port,” Australian

Ports Minister, Mark Bailey commented. “This $55 million investment will deliver economic

benefits to Townsville and it demonstrates the need to keep vital assets such as this in

public hands.”

The investment is expected to increase capacity by two million tonnes per year and will be

used to develop a landside cargo handling area and enhance intermodal cargo transfer links

by road and rail.

“The port is the major transport link for agriculture and resources commodities from

northern Australia to Asia. This latest investment will help Townsville deliver frequent and

direct services to international markets, providing our customers with reliable and efficient

infrastructure to handle their cargo,” Ranee Crosby, chief executive of the Port of Townsville




said, adding that the investement would make the port “even more efficient and

competitive”.

The upgrade work at Berth 4 is designed to create a deeper draught and allow for Panamax-

size 4,500 TEU vessels to dock. This is expected to deliver a 20% increase in total tonnage

throughput. A landside cargo handling area will also be built and the intermodal transfer of

cargo for road and rail will be enhanced.

[Port Finance International]

Germany: DB Schenker Logistics to be partially privatised

28/07/2015

Germany's state-owned railways Deutsche Bahn (DB) today confirmed plans to

partially privatise its subsidiary DB Schenker Logistics as part of an extensive

restructuring programme - DB2020 - which will be launched at the beginning of

next month.

In a statement issued today, it said the move was designed "to boost strategic development

and finance further growth." DB did not elaborate on how much of DB Schenker Logistics -

which it describes as "the world’s second largest transportation and logistics services

provider based on revenues and performance" - was earmarked for privatisation and which

specific parts of the business would be included in it.

Media reports claimed there were plans to sell a stake of least 20% of DB Schenker Logistcis

to a third party. Contacted by Lloyd's Loading List.com, a DB spokesperson said: “A sale of

DB Schenker Logistics is not planned. DB will offer details about other possible steps in

December.”

The spokesperson added: “At the H1 results press conference earlier today, the chief

financial officer of DB Mobility Logistics, Richard Lutz, said, the goal was to make a decision

in December,on the “if, how and when” a partial sale could take place. Right now there will

be no ideas or numbers presented.”

In 2014, DB Schenker Logistics generated revenues of around €19.8 billion, approximately

50% of the DB Group’s revenues.

"Through its Transportation and Logistics Division, DB holds top positions in global air and

ocean freight and has Europe’s densest land transport network and the rail expertise of

Europe’s largest rail freight company," the Group said in a previous press release.

Today's statement stipulated that DB Mobility Logistics AG - "which was created years ago in

anticipation of a potential IPO" - and is organised into six business units - DB Bahn Long

Distance, DB Bahn Regional, DB Arriva, DB Schenker Logistics, DB Schenker Rail, and DB




Services -"will be merged with DB AG, the Group holding company. This step will reduce

duplicate structures and simplify coordination and approval processes."

[Lloyd's Loading List]

UAE: DP World starts US$ 1.6 billion development of fourth

container terminal at Jebel Ali

28/07/2015

Phase 1 of the Container Terminal 4 (T4) project will deliver a new capacity of

3.1 million TEU by 2018, taking Jebel Ali Port’s total capacity to 22.1 million TEU.

The port complex will be equipped with at least 110 cranes with a total quay

length of around 11,000 metres by that time.

DP World has revealed that is planning to spend US $1.6 billion on the expansion of Jebel Ali

Port. T4 will be located on a reclaimed island north of the existing Terminal 2, allowing DP

World to further expand capacity to a total of 7.8 million TEU in line with market demand.

As part of the project, a bridge is being built to provide access to the island from land near

Terminal 2. Work is scheduled to get the 3,000 metre causeway and bridge partially open to

traffic before the end of 2015.

DP World’s Terminal 4 expansion plans will see Jebel Ali Port’s capacity grow by 3.1-million TEU by

2018. Image source: Construction Week Online)

Jebel Ali and other DP World terminals in the UAE handled 7.9 million TEU in the first half of

2015, representing a growth of 6.0% compared with the first half of 2014.




Sultan Ahmed Bin Sulayem, Chairman of DP World, remarked: “Jebel Ali continues to

respond to market demand as we have in the past. Despite the addition of 2 million TEU

capacity in Terminal 3 scheduled in the second half 2015, the port still experiences high

levels of utilisation.”

“With Jebel Ali’s total capacity set to reach 22.1 million TEU in 2018, we are ensuring our

flagship asset in Dubai continues to have sufficient capacity to serve the future growth

demand of the UAE and the wider region.”

Terminal 4 will be equipped with semi-automated quay cranes, providing operational

efficiencies for customers, comfortable and safe working conditions for employees and

environmental benefits for the community at large by reducing the carbon footprint.

Under Phase 1, T4 will feature a 1,200 metre long quay with an 18 metre draft, and 13 of

the world’s largest and most modern quay cranes, remotely operated from a sophisticated

control room off the quayside. Some 35 Automated Rail Mounted Gantry cranes (ARMG) will

operate in the yard.

[Port Technology International / Arabian Supply Chain]

Thailand: MOL establishes barge terminal operator in Bangkok

28/07/2015

Mitsui O.S.K. Lines, Ltd. announced the signing of a Joint Venture Agreement

with SahaThai Terminal Co., Ltd., a container terminal operation company in

Thailand, to establish a new barge terminal operation company in Bangkok.

The new company, called Bangkok Barge Terminal Co., Ltd. (BBT), will have its head office

in Bangkok.

Due to shallower water depth at the Bangkok river port, Laem Chabang port which locates

about 90 km south has become the main gateway port of Thailand with its capability in

accommodating many liner services with larger containerships. Consequently, container

transport between Laem Chabang and the outskirts of Bangkok by land transport via truck

and rail, as well as waterway transport via barges now play important roles.

Barge transport is positioned for an increase in demand, since it has bigger capacity and

offers considerable advantages in safety and environmental friendliness. The BBT-operated

barge container terminal, slated to open in 2016, will serve as a new gateway to Laem

Chabang Port for customers who need cargo moved to and from the outlying areas of

Bangkok.




Planned terminal location

MOL has moved to expand its businesses including container terminal operation at Laem

Chabang Port, warehousing, trucking, and container and truck depot operation, providing a

full range of high-quality services. With the addition of BBT to its service menu, MOL will

provide further diversified, higher quality services tailored to customer needs.

[MOL]

Bangladesh to clamp down on shipbreakers

28/07/2015

Dhaka is taking steps to regulate its sprawling shipbreaking industry, including

dishing out fines and prison sentences for companies found to not be following

the correct procedures.

The Bangladesh Ship Recycling Bill, 2015 is being discussed at the moment in the capital. It

will see the setting up of a Bangladesh Ship Recycling Biard to monitor the sector. The prime

minister has approved the bill in principle. It will soon go before parliament.

Cabinet secretary Musharraf Hossain Bhuiyan said the law’s aim was to address occupational

health hazards of the industry’s huge workforce, ensure safe working conditions, better

waste management, and protect the coastal environment.




Bangladesh is the world’s second largest ship breaking nation – the industry employs tens of

thousands of people along its southern coast, often working in appalling conditions.

[Splash 24/7]

Port of Singapore calls bids for LNG bunkering

28/07/2015

The Port of Singapore launched its first Request for Proposal (RFP) for interested

parties to apply for the Liquefied Natural Gas (LNG) bunker supplier licence,

which would allow the licencee to supply LNG bunker to vessels in the Port of

Singapore.

In their submissions to the Maritime and Port Authority of Singapore (MPA), applicants are

to propose an end-to-end LNG bunkering supply solution that details, amongst other things,

their bunkering supply and delivery model, LNG sources and marketing plans for the sale of

LNG to customers in the Port of Singapore.

Interested applicants for the RFP have until 30 September 2015 to submit their proposals to

MPA. The shortlisted proposals will be announced by MPA by end of this year.

As part of efforts to develop LNG bunkering, MPA has been collaborating closely with partner

agencies, industry stakeholders and technical experts, to develop LNG bunkering standards,

procedures and facilities. Last year, MPA announced commencing work on a pilot

programme with interested parties of the LNG bunker supply chain to establish operation

protocols for LNG bunkering. MPA will also provide funding of up to S$2 million per vessel

for up to six LNG-fuelled vessels for the pilot programme.

Successful applicants of the RFP are expected to supply LNG bunker to support the LNG

bunkering Pilot Programme that is scheduled to commence in early 2017.

The bunkering industry is an important and integral part of Singapore’s global hub port.

With more than 42 million tonnes of bunker sales last year as the world’s top bunkering

port, Singapore plays a key role in powering world shipping and promoting the use of

cleaner fuels for ship bunkering.

[GREEN4SEA / MPA Singapore]

Ports and their environmental impacts

28/07/2015

Since the IMO’s sulphur regulations came into force earlier this year, shipping

lines have been under increasing pressure to lower their carbon emissions and




comply with new environmental regulations. However, it isn’t just the shipping

lines that have a responsibility to uphold, but the ports as well.

Environmental impacts were seen most prominently at the Port of Los Angeles recently, as

increased congestion, caused by the labour strikes at a number of US West Coast ports led

to ships staying at ports longer without using shore power. This had harmful effects on the

environment, suggesting that ports need to tighten regulations. But how much of an impact

do ports have on their immediate environments?

“Much depends on the local situation”, says Olaf Merk, Administrator of Ports and Shipping

at the International Transport Forum, “e.g. river ports need to be dredged which can have

impacts; some ports have a strong industrial character with the related impacts; some ports

are close to urban areas so need to pay more attention; some ports have ship types that are

much more polluting. “So it is difficult to generalise about the environmental impacts of

ports, because “the port” does not exist; it is rather a variety of ports with different

environmental challenges.”

Some experts argue that it depends on the cargo volume of the ship calling at the port.

Richard D. Cameron, Managing Director of Planning and Environmental Affairs, Port of Long

Beach, said: “Depending on their cargo volume and location, seaports can have an impact

on the air quality and therefore on the health of the community. At the Port of Long Beach,

we’ve made it a top priority to reduce all of our environmental impacts, and to track our

progress in doing so.”

As diverse as these issues are, ports in the EU are an example of how some port activities

can have a massive impact on the local area. A case in point are the ports of Bremen and

Hamburg, Germany, that could have their plans for expansion thwarted by the European

Commission as a result of river dredging, which is posing a threat to local water quality.

Emissions in ports, particularly those emitted from ships, such as carbon dioxide, mono-

nitrogen oxides and other harmful chemicals, are among the toxic elements to increase

fourfold by 2050, with no sign of a slowdown, as ships are said to be no more efficient than

they were around two decades ago. So what solutions are available for ports in tackling this

vast array of environmental impacts?

Richard D. Cameron said: “This year we are marking the tenth anniversary of the Green Port

Policy, which is the Port of Long Beach’s commitment becoming a leader in environmental

stewardship. The port has backed that commitment with an investment estimated at more

than $500 million, our industry partners have spent even more, and the results have been

clearly evident. “We’ve seen an 82% reduction in diesel particulate exhaust from port-

related sources in the last 10 years. Because of our ‘Clean Trucks Program’, we have 14,000

drayage trucks at work in the port that are from the year 2007 or newer. There are 78 acres

of kelp beds in port waters. And it doesn’t end there. We are working on an update to our

‘Clean Air Action Plan’, and we are aiming to become a zero-emissions port.”




A recent example of a port and terminal operator that is actively lowering carbon emissions

at its port is Singapore’s Jurong Port, who will soon have the world’s first green berths, one

of several initiatives taken to promote environmental sustainability. Portsmouth International

Port has also spent around US$1.5 million on solar energy to reduce its impact on the

environment – a contemporary method of reducing environmental harm that was voted the

second most important way of protecting the environment in a recent PTI poll.

The Port of Long Beach is one of the few ports globally that is setting a new benchmark in

environmental innovation by reducing diesel emissions by around 82% at various port

sources and actively implementing this measure through its Green Port Policy, which has

been in force for 10 years.

In summary, the effects of ports can be wide-ranging, depending on their location and the

activities that are taking place either on site or locally. However, myriad options are

available for lowering industrial emissions, such as reverting to solar energy. Lowering diesel

emissions from larger vessels can also be achieved through shore power and ensuring that

ships are reducing their speed upon arrival at ports, and therefore reducing the level of

emissions given off in the immediate port environment.

[Port Technology International]

New funding for energy efficiency projects

28/07/2015

The International Maritime Organization (IMO), the Global Environment Facility

(GEF) and the United Nations Development Programme (UNDP) have signed an

agreement to allocate US$2.0 million to a two-year global maritime energy

efficiency partnership project, which aims to support increased uptake and

implementation of energy efficiency measures for shipping.

The so-called GloMEEP project, short for ‘Transforming the Global Maritime Transport

Industry towards a Low Carbon Future through Improved Energy Efficiency’, will focus in

particular on building capacity to implement technical and operational measures in

developing countries, where shipping is increasingly concentrated. The aim is to promote a

low-carbon maritime sector and minimise the adverse impacts of shipping emissions on

climate change, ocean acidification and local air quality.

The project is expected to catalyse an innovative public-private sector partnership with

participation anticipated from leading private sector companies, including classification

societies, ship builders, ship owners, ship operators, marine equipment suppliers, port

operators, and marine consultancy and management system providers.

So far, 10 IMO Member States have signed up to the GloMEEP project as lead pilot

countries: Argentina, China, Georgia, India, Jamaica, Malaysia, Morocco, Panama,




Philippines and South Africa. These lead pilot countries will be supported in taking a fast-

track approach to pursuing relevant legal, policy and institutional reforms, driving national

and regional government action and industry innovation to support the effective

implementation of IMO’s energy efficiency requirements.

Besides the GEF financing for GloMEEP, other funds will be mobilised in the form of in-kind

and financial donations, to a projected total of some US$13.8 million.

[Fathom News]

Ending the abuse of laws, workers and the environment at sea

27/07/2015

How might we better manage the world’s oceans?

This question came up often during the reporting of The New York Times’s series about

lawlessness at sea. Labor, human rights and environmental abuses are widespread largely

because the oceans are so sprawling, jurisdiction is complicated and policing is rare. To

address these problems, maritime and law enforcement officials have proposed a variety of

measures, some of them already being put into effect. They emphasized, though, that far

more needs to be done. Among their recommendations:

To protect labor and human rights

Track abuse and violence at sea. To avoid the abuse or disappearance of seafarers,

governments should make more spot checks on ships returning to port and levy heavier

penalties for incomplete crew lists. Shipowners and crews should be legally obligated to

report crimes at sea. Port officials and insurers should limit the fines imposed on ships found

with stowaways that create incentives for killing or abandoning stowaways at sea. The

programs that grant ships the right to fly a country’s flag should collect detailed crime data

on crew members and captains and make the information public. Flag programs should also

agree to help create and maintain an international database for tracking missing mariners.

Require more frequent visits to shore. Forced labor is more common on boats that stay

at sea longer. Many of these boats avoid docking for years by relying on transshipment, a

system where supplies are carried to the fishing boats and the catch is transported back to

shore. Maritime researchers and fisheries management officials say that transshipment at

sea should be banned or limited. They also argue that countries should impose requirements

on how often boats return to port.

Expand the financial safety nets. Starting in 2017, an International Labor Organization

rule will require shipowners to show proof of funds to cover four months of crews’ wages

and the costs to repatriate them. They will also have to prove they can cover costs that

result from death or long-term disability of seafarers due to occupational injury and hazard.




Those rules should be expanded to fishing boats, which are currently exempt from most of

the labor organization’s major protections.

Support the Maritime Labor Convention. By ratifying this measure, the American

government could enforce higher standards of paid leave, wages, medical care and safety

rules on foreign-flagged vessels as part of Coast Guard inspections during visits to American

ports.

To conserve the oceans

Create marine reserves. In March, the British government announced that it was creating

the world’s largest contiguous reserve around the Pitcairn Islands in the South Pacific. Last

year, the Obama administration added nearly a half million square miles of protected United

States waters. In the past five years, the Pacific island nations of Kiribati and Palau have

tripled the size of their protected waters. Increasingly popular, marine reserves and no-take

areas where all marine life is protected are widely seen as the best hope for restoring fish

stocks.

Increase monitoring. The vastness of the oceans make it easy for poachers to thwart

government quotas, enter forbidden areas and pillage sanctuaries. As a result, pirate fishing

boats are responsible for over 20 percent of the wild-caught seafood imported into the

United States, according to one major study. Large organizations like Google and the Pew

Charitable Trusts are using satellite data to better police the sea. This technology holds

great promise particularly when used to monitor reserves where no boats are allowed.

Make seafood traceable. The technology exists to better track fish as they move from

bait to plate. Governments and large seafood sellers could mandate the use of bar codes on

packaging, DNA field kits for identifying species and algorithms that flag suspicious imports.

The European Union is already pushing such requirements. Some grocers like Whole Foods

Market and Wegmans are also starting to embrace these measures. The Obama

administration is pressing Congress to pass legislation tightening rules at ports to block

illegally caught fish from being offloaded.

[International New York Times]

Mozambique: Port accident deals blow to Vale coal project

27/07/2015

A coal stacker has collapsed at the Mozambique port of Nacala, dealing a blow to

Brazilian miner Vale’s effort to start coal shipments from the African nation in the

third quarter, sources told Reuters on Monday.

The giant piece of machinery, which is used to handle coal and other bulk materials, buckled

last week according to a mining industry source with knowledge of the situation. “The




contractors are investigating and an official report is expected within a couple of weeks,” the

source said, adding that no one was hurt in the accident. Another source said it could take

months to fix the equipment.

In an emailed statement Vale confirmed that the coal stacker, which was in the final stages

of construction, collapsed last week. A team is studying the cause of the accident, the

company said.

Vale is reliant on the port and connecting railway, together known as the Nacala Corridor, to

reach capacity at its Moatize coal mine in northwest Mozambique. Vale expects Moatize’s

production to reach 11 million tonnes of coal per year by mid-2016 and 22 million tonnes by

2017. Current output is around 7 million tonnes.

A third source said Vale had been experiencing problems with its wash plant at the mine

site, an issue that could see it miss its production target for this year. In its statement Vale

said the outage was due to scheduled maintenance and that processes were working

normally.

Vale’s Moatize project has been beset by logistical problems, with the difficulties in building

and expanding the Nacala railway and port holding back production increases at the mine.

The rail line runs for 900 km (560 miles) through land-locked Malawi to the port of Nacala

on the Indian Ocean. Vale had originally said it expected to ship coal from the new port in

the first quarter of 2015.

Last December, it sold a stake in the project to Japanese trader Mitsui & Co Ltd in order to

share the cost of getting it up and running. Mitsui bought a stake of just under 15 percent in

the mine and 35 percent in the rail and port.

[Reuters]

35 new ULCS in this year's first half

27/07/2015

In the first half of 2015, nine different carriers took delivery of 35 ULCS (i.e. 6

per month) with a combined nominal capacity of 552,000 TEU.

With seven 18,300 TEU-Tiple-E class ships, Maersk Line accounted for the largest share. The

biggest unit, the 19,900 TEU "Barzan", belongs to UASC, while Hanjin was the modest-most

carrier with a single 10,000 TEU vessel. The total number of 10,000+ TEU ships in service

reached 304 units/4,043,000 TEU, or an average of 13,300 TEU.

[DynaLiners Daily]




Twistlocks: Putting safety first

27/07/2015

Andrew Ryan asks whether operators take twistlock problems seriously enough

Stevedores spend their days in very unique workplaces; at every turn they are faced with a

different working environment. Unlike most industries or offices, their workplace changes

minute by minute, continually exposing them to high risk situations that could be fatal if not

managed correctly.

Image: Port Strategy

Deck foremen and assisting labour are regularly exposed to potentially fatal situations,

especially when dealing with single or multiple snagged twistlocks or loads that can only be

resolved through human intervention. Crane operators are put under pressure to maintain

perfect control while these personnel are working in these high risk situations. If a failed

twistlock releases while there is stored energy in the lift, an uncontrolled 50 tonne ‘missile’

will bear down on personnel. This happens too many times for comfort and in many

incidents results in a fatality.

Due to the nature of some common port labour structures, it can be difficult to give workers

the high standard of training that is required to mitigate the risks encountered in their

workplace. Workers may not return to a particular site for a considerable time and their level

of safety awareness may be lower than necessary.




On occasions, the training for contracted employees may be just enough to get the job

done. Compare that to a site that has engaged highly experienced permanent employees

with many years’ exposure and knowledge of the vessels that they encounter on a regular

basis.

There is also an added risk factor when staff are elevated to high risk positions after just a

short time in the industry. When in these positions for a prolonged period, employees may

also become complacent to the risks. To mitigate some of these risks, a handful of shipping

lines have moved to fully automatic twistlocks. Others have opted for semi-automatic

twistlocks. But with these changes come new risks.

Stevedores loading and discharging containers with fully automatic twistlocks have reported

a number of issues. One problem concerns ‘jamming’ with the lower tier, leading to the

lower tier to be accidentally lifted and then dropped from underneath the intended discharge

container back onto the other deck stows or onto walkways and railings. Aside from the

obvious safety risks, this leads to a loss in productivity, damage to more than one container

and the ship, lost revenue, down time, damaged cargo and insurance claims.

Twistlock troubles

Other commonly encountered compromises with twistlocks include damage, incorrect fitting,

lack of release mechanism, jamming due to damaged corner castings and incorrect

application. These issues are usually dealt with on the deck of the ship, where the deck

foreman handles both the risk and resolves the problem. That foreman and the workers

involved face high risk safety concerns when dealing with these exceptions, which can have

a major impact on stress and workplace moral.

These issues aren’t new and are simply just accepted as part of the job. All too often there

is a ‘keep moving as the ship must sail’ approach; when the next ship arrives the cycle

continues without any real or lasting resolutions to the problem.

Terminals need to look at the handling procedures and the tools put in place to deal with

these twistlock issues. As such, the deck foreman and lashing safety should be at the

forefront of terminal safety and the operations agenda.

Once the workforce is experienced and educated in managing these risks, the port or

terminal can enjoy the fruits of improved safety outcomes and operational efficiencies.

Operators should look carefully at the quality of training that is applied around the high risk

issues that they face in their operations and ask: is the training relevant; does it assist in

managing risks; and has the desired outcome actually been achieved?

Management needs to be tuned into the level of exposure, the nature of the risks and the

frequency that they occur. Questions for management include: are these risks in the ‘too

hard basket’; and does complacency exist?




Shipping lines – small, medium or large - are not exempt from these issues. All that varies

are the degree of frequency and the type of risks faced; stevedores all face and deal with

these risks.

[Port Strategy

Malaysia: Malacca to convert ports into specialized hubs

27/07/2015

Plans are underway to convert seven Malaccan ports into specialized hubs.

The Malacca Port Development Masterplan is expected to increase investments and

economic activity by creating jobs in the manufacturing, tourism and industrial sectors. The

plan will upgrade the six existing Malaccan ports and begin construction on the Malacca

Gateway Port, which will specialize in tourism.

The six existing ports will cater to various industries. The Linggi Port will serve the industrial

sector, Tangga Batu will serve the oil and gas industry, Tanjung Bruas will serve cargo and

containerships, Undang will serve the military, Umbai will serve the fishing industry and

Sungai Rambai will serve the mining and mineral sectors.

"We have studied the advantages of specializing each port according to the sectors chosen

under the masterplan in line with our goals to spur the state's economy,” said Datuk Lim

Ban, the Malacca Transport and Project Rehabilitation Committee chairman.

Malacca is the third-smallest Malaysian state after Perlis and Penang and is located on the

southern region of the Malay Peninsula next to the Straits of Malacca and the royal city of

Muar. Malaysia had a GDP of $336.9 billion in 2014, 83% of which came from exports.

[Maritime Executive]

Indonesia floats port expansion to boost faltering economy

27/07/2015

Container ships dot the horizon off the coast of Jakarta, as cranes and labourers

work on an ambitious, economy-boosting project to expand the port network in

the world's largest archipelago nation.

New Priok will be Indonesia's biggest port once completed, and is one of 24 ports planned

to overhaul maritime connections in Southeast Asia's top economy, which comprises more

than 17,000 islands.




President Joko Widodo is leading efforts to improve dilapidated maritime infrastructure in a

country where ships face lengthy delays before berthing and goods can get stuck for days

as they run a gauntlet of government agency checks.

"This is no longer a wish, but a necessity," Widodo recently said of improving ports after

Indonesian growth hit a six-year low of 4.7 percent in the first quarter, a blow for a leader

who won power on a pledge to revive the economy.

The port plan is part of a broader scheme to improve infrastructure, from potholed roads to

creaking train lines, as the country seeks to lure foreign investors and pull out of a long

slowdown driven by falling prices of its key commodity exports.

Action is urgently needed -- Indonesia's infrastructure is so woeful that it is cheaper to

transport goods from China to the country's most populous island of Java than to bring them

from the Indonesian part of Borneo, which is far closer, according to the World Bank.

Formidable challenges

Improving ports is particularly critical for a nation that straddles the Indian and Pacific

Oceans and is home to important shipping routes. As well as attracting new investment, the

scheme could reduce the price of consumer goods through lower transport costs and help

develop more remote parts of the archipelago.

Widodo, a former furniture exporter who knows well the problems of the country's ports, is

taking a personal interest in the project but it faces formidable challenges. There are

growing doubts his administration, which has been criticised over its failure to kickstart

major infrastructure projects, will be able to push through the plans due to a lack of

organisation and a dysfunctional bureaucracy.

On a recent visit to Tanjung Priok port in Jakarta -- which handles much of Indonesia's

international trade -- Widodo's frustration at slow progress was clear when he delivered an

angry tirade over the failure to substantially cut the time it takes goods to move through the

facility.

The target date to complete all the ports is 2019. But even if the target is met, which seems

doubtful given many infrastructure projects in Indonesia suffer delays, experts say this alone

will not solve the problem of red tape and graft that slows down processing of goods.

"Building hardware is a critical element in the wider scheme of things," said Jayendu

Krishna, a Singapore-based analyst with industry consultancy firm Drewry Maritime Services.

"An equally important element for success will be tackling bureaucracy and corruption,

otherwise it might turn out to be much ado about nothing." Nevertheless, industry players

sense renewed momentum under the new president.




"I am very optimistic, we've got very strong support from the top," Richard Lino, president

director of state-owned port operator Pelindo II, which is developing the New Priok port,

told AFP. "There is no reason not to be successful."

Playing catch-up

The Jakarta project is one of five planned deep-sea ports, which can receive large cargo

ships and will be dotted across the archipelago from western Sumatra island to

underdeveloped eastern Papua.

Tanjung Priok, currently Indonesia's biggest port, handles 6.5 million containers a year. To

its east, the first stage of New Priok is taking shape, with labourers working on a container

terminal, a wide stretch of concrete jutting out into the sea.

Construction of the new port, which consists of two phases, began in 2013 but people

involved in the project say it has sped up in recent months. Trial operations are due to begin

on the first stage later this year but the entire project is not expected to be completed for

some years.

The new port, which will share services with Tanjung Priok and whose first phase alone is

expected to cost around $4.5 billion, will have capacity to handle 12.5 million containers of

international freight a year. Work has already started this year on ports in Kuala Tanjung on

Sumatra and in Makassar on central Sulawesi island.

Despite the optimism, Indonesia faces a long road to catch up with other Asian countries,

such as more affluent Malaysia, which has more modern port facilities. "We are still behind

our neighbours, that is for sure," said Pelindo II's Lino. "It is a very big challenge.”

[AFP]

South Korea: Busan port development plans announced

27/07/2015

The Korean Ministry of Ocean and Fisheries and the Busan Port Authority have

announced a long-term vision and strategy to develop Busan Port into a global

trans-shipment hub port.

In recent years trans-shipment cargo at Busan has grown by 10% (average) year-on-year

while local cargo has increased by 4.2%. In 2014, trans-shipment activities overtook local

cargo operations for the first time in the port’s history with trans-shipment accounting for

50.5% (9.43 million TEU) up from 31.7% in 2000. Taking a lead from this success, the

Korean government and BPA are implementing concrete plans to consolidate and strengthen

Busan’s position as a global trans-shipment hub.




The first step is to integrate container handling activities currently undertaken at North Port

and New Port into a single New Port location. This will also include the creation of eight new

berths at New Port by 2020 – these will add a further 6.21 million TEU capacity. Added to

this, a feasibility study will investigate further expansion to the western container terminal at

New Port. In addition, a feeder terminal for intra-Asian carriers will be created to serve the

feeder network within the port.

Meeting the demands for ever-growing container ships, the current program of dredging to

a depth of 17m will be completed ahead of schedule in March 2017. Todo Island, currently

situated in the port entrance, will be removed by 2019 and the entrance itself will be

expanded by the end of 2018.

[Dredging Today]

U.S.: Port of Los Angeles poised to begin major upgrade of

Yusen box terminal

27/07/2015

The Port of Los Angeles will this summer (2015) begin major construction work

at the container terminal operated by Yusen Terminals.

It forms part of a programme to invest more than US$800 million in its facilities over the

next five years aimed at enhancing berth, gate and rail efficiencies at all of the US West

Coast gateway's marine terminals.

Yusen Terminals, part of NYK Ports and jointly-owned by the NYK Group and Macquarie

Infrastructure Partners III, operates the terminal under a long-term lease with the Port

which runs until 2026.




The port’s total investment in the two-year project is estimated at more than $67 million,

which includes the cost for on-dock rail facilities which will be carried out under a separate

contract in 2016. Additionally, Yusen estimates it could invest more than $60 million in

support of the project.

“This project consists of strategic improvements to make Yusen a more agile terminal and

strengthen our competitive edge,” said Port of Los Angeles Executive Director, Gene Seroka.

“In addition to making the best use of Port property, it incorporates green features and

practices that further our commitment to the highest environmental standards.”

Work entails upgrading wharf and backland infrastructure within the terminal’s existing

footprint to enhance Yusen’s ability to service the biggest ships on trans-Pacific trade lanes,

the Port underlines.

The improvements will allow Yusen to simultaneously work three container ships carrying up

to 13,000, 11,000 and 6,500 teu respectively and ensure cargo flows during peak periods

when ships call at all three berths. To date, the largest ship that has called at Yusen's LA

terminal is an 8,500 teu-capacity vessel. It typically receives 6,500 teu ships and works two

vessels concurrently.

Separately, the Port of Los Angeles handled almost 722,000 teu last month, down 2% on

June 2015. The figures include total loaded imports and exports and empty containers. For

the first six months of 2015, overall volumes amounted to a little over 3.9 million teu, down

3.7% on the same period last year.

[Lloyd’s Loading List]

Ghana: On a greenfield in Tema

27/07/2015

There is great potential in Sub-Saharan Africa for terminal operators. Even

though the region’s economic growth has slowed down a little recently,

institutions such as the International Monetary Fund nevertheless believe in its

positive development. APMT Terminals and Bolloré Logistics are especially

banking on opportunities in Ghana.

Even if economic growth in African countries south of the Sahara has been decreasing

slightly this year in comparison with 2014, the prospects for the future are still far from

poor. 2014 saw GDP for the entire region expand by approximately 5%. The International

Monetary Fund (IMF) has projected a marginally lower improvement of 4.5% for Sub-

Saharan Africa this year, but it expects more promising developments in 2016 again, with

the figure expected to rise to 5.1%.




When economic performance improves, trade tends to grow too. This is a particularly

promising state of affairs for container terminal operators. Box shipping analysts estimate

that containerised cargo handling in Africa increased by 7.2% in 2014, compared with a

worldwide growth rate of 5.4%. The number of units handled in African ports is forecast to

continue to rise well above the rate of growth registered globally.

Ghana is one of the countries where transport and logistics industry enterprises currently

expect to be able to generate particularly promising returns. The IMF has predicted that the

national economy will expand by 3.5% in 2015. The institutions’s analysts have said that

they expect the figure to rise to 6.4% for 2016.

International cooperation

But the situation is not completely rosy. Like several other African countries, Ghana has

recently met with several challenges to its economic performance. The government is

collaborating closely with the IMF, which is supporting the country in its attempts to

manage the overall situation. The government’s aim to secure economic stability includes

encouraging private investment in infrastructure, covering core fields such as road and

port construction, as well as power generation.

Meridian Port Services (MPS) is one example of a successful public-private venture, with

part-owners Bolloré Africa Logistics and APM Terminals (APMT) entering into a partnership

with the government’s public entity Ghana Ports and Harbours Authority (GPHA) to set up

a consortium which operates a terminal in the port of Tema. Approximately 70% of Ghana’s

maritime cargo is handled in the latter gateway. Container throughput in MPS’s facility came

to 651,000 teu in 2014. This has brought the box hub, which has been operational since

2004, close to its maximum utilisation rate.

Focusing on a free market

Ghana has a population of 21 million people and a market-based economy. The country has

few policy barriers to trade and investment in place. It is considered a politically stable

nation and an attractive place to do business, which is partially why APMT and Bolloré are

continuing to invest in the location. Together with the national authority the partners are set

to invest USD 1.5 billion in expanding the hub. The project consists of a new centre outside

the present facility, on a greenfield site, as well as upgrading the local road network.

The Tema gateway will result in the construction of four new deepwater berths, a

breakwater, as well as another access channel, making the facility capable of welcoming

the world’s largest containerships. The entire undertaking is supposed to provide additional

capacity to handle an extra 3.5 million teu annually. More than 5,000 new jobs are also

expected to be created by the project.

The European partners’ investments are not restricted to the maritime sector, however.

APMT and Bolloré are also engaged in a scheme to upgrade a highway into a modern six-




lane motorway linking the capital Accra to Tema. This scheme includes improved connecting

roads and access points, to enhance the movement of cargo into and out of the port of

Tema and the hinterland.

[International Transport Journal]


Documents

Port & Shipping News 31/15