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"Fighting for funding" Iaph p&h article July 2010 "Fighting for funding" Iaph p&h article July 2010 Document Transcript

  • July 2010 Vol 55 No 4 Contractually obliged IT advice that could benefit both parties Greener by design Looking forward to zero emissions Cruise control US ports grapple with low-sulphur fuel Official Journal of the International Association of Ports and Harbors Smart scanning Monitoring access for greater flexibility World Peace through World Trade – World Trade through World Ports www.iaphworldports.org
  • ENVIRONMENTAL LEADERSHIP LIGHTER. SIMPLER. MORE RELIABLE. ENERGY-EFFICIENT. GREENLINE™ SPREADERS. ONLY FROM BROMMA. Bromma GreenLine™ spreaders offer terminals ship- Eliminating hydraulics reduces spreader power con- With no fluids to change, and no filters to replace, to-shore and yard solutions that are lighter, more sumption by an estimated 85%. For every 5 kWh con- GreenLine™ means reduced maintenance, a sav- energy-efficient, simpler to operate, and more reliable. sumed by an STS45, less than 1 kWh is consumed by ings Bromma estimates at more than $2,000 USD GreenLine™ all-electric spreaders reduce power con- an STS45E. This represents annual savings of more per year. Quiet, ideal for automated terminals, and sumption in two ways. Reduced spreader weight low- than $1,100/year per spreader. What are combined energy efficient, GreenLine™ spreaders are the right ers STS crane power consumption by an estimated crane and spreader fleet savings? For a 10-spreader products for the right time, and they are only avail- $4,000 USD/year per crane. fleet, more than $50,000 USD per year. able from Bromma. GREENLINE™. ENVIRONMENTAL LEADERSHIP. Only from Bromma.
  • RegulaRs P&H CONTeNTs Comment Secretary General Naruse reflects on Savannah 3 News The latest industry news, including port updates, dredging projects, people and more 4 Open Forum Michel Donner urges ports to consider public-private partnerships if seeking investment 12 Cover Story Different approaches, systems and attitudes to port access information systems; Port Safety and Security Committee chair considers PAIS in Rotterdam 22 18 Maritime Update WPCI Enironmental Ship Index; putting a stop to piracy; IMO sets goal-based standards 36 IAPH Info A successful Mid-term Board Meeting in Savannah; PIANC and IAPH collaborate; four new members 40 Last Word Port community systems offer a competitive edge, believes Frédéric Dagnet from Port of Marseille 44 July 2010 Vol 55 No 4 FeaTuRes Creating cover A landlord port may be more at exposed 22 Contractually obliged bene t both parties IT advice that could Greener by design zero emissions Looking forward to Cruise control 14 with low-sulphur fuel US ports grapple Association of Ports and Harbors than their assets suggest, warns an insurance expert Official Journal of the International IT contracts Consider the details when creating a good relationship between supplier and buyer 16 Smart scanning Monitoring access for greater exibility Green design WWL wants to reduce the carbon World Ports Trade – World Trade through World Peace through World www.iaphworldports.org Biometric scanning footprint of its terminals, discovers Jem Newton 18 of hands and fingers is being incorporated Sea level exposure Start planning now to avoid into many ports’ that sinking feeling in the future 20 security infrastructure Photo: iStockphoto Cruising throughput The ups and downs in the US industry as low-sulphur fuel takes its toll 32 July 2010 ISSUE 04 VOL 55 Access to procedures Assist masters by posting timely information on port websites 34 25 THE CONTINENTAL GATEWAY Zeeland Seaports Port Authority Schelpenpad 2 (port no. 1151) P.O. Box 132 4530 AC Terneuzen The Netherlands Phone: +31 (0)115 647400 Fax: +31 (0)115 647500 100158 port@zeeland-seaports.com www.zeeland-seaports.com Ports & Harbors | July 2010 
  • COMMENT Savannah success Safety, the environment, different business direction, and saying ‘no’ to piracy Official Journal of the International Association of Ports and Harbors PORTS & HARBORS SUBSCRIPTIONS Published bi-monthly by the International Association of Ports and Harbors International Association of Ports Price Japanese ¥12,000 (US$120 / and Harbors (IAPH), edited and UK£80 / €90) or per issue ¥2,000, produced by IHS Fairplay. postage included. Visa and MasterCard accepted or for Bank Transfer. You do not have to be Susumu Naruse PUBLISHER an IAPH member to subscribe Secretary General – The International Susumu Naruse – contact the IAPH. Secretary General, IAPH 7th Floor, South Tower, Association of Ports and Harbors New Pier Takeshiba info@iaphworldports.org 1-16-1 Kaigan, Minato-ku Tokyo 105-0022, Japan EDITOR Tel: +81-3-5403-2770 Penny Allen Fax: +81-3-5403-7651 M Email: ph@iaphworldports.org penny.allen@ihs.com Web: www.iaphworldports.org ajor ports have seen steady growth in throughput despite the fluctuations in the value of the euro caused by SUB-EDITOR COPYRIGHT All rights reserved. No part of this the financial crisis in Greece. We hope that the global Stephen Spark publication may be transmitted, economy will recover firmly and quickly return to a pre-crisis level. in any form or by any means, elec- ADvERT SALES MANAGER tronic, mechanical, photocopying, It was against this backdrop that a successful IAPH World Ports Daniel Gonçalves recording, or any other informa- Forum and Mid-term Board Meeting took place in Savannah, tion storage retrieval system with- daniel.goncalves@ihs.com out permission in writing from Georgia, which was attended by more than 100 delegates. IAPH and IHS Global Limited © Copyright IAPH and IHS Several topical issues were discussed including the impact of the DESIGN & PRODUCTION economic slowdown on the ports industry and how it has changed Global Limited, its subsidiary and Hannah Kidd affiliated companies, all rights reserved, 2005–10 the way logistics providers do business. Safety and the environment Matt Ramsdale Sarah Treacy were also on the agenda, in keeping with IAPH’s commitment to DISCLAIMER these issues, with presentations on ‘Protecting maritime trade’ and Rebecca Bailey IHS Global Limited, its affiliates and subsidiaries and their respec- ‘Greening the supply chain’. Delegates shared their views on the tive officers, employees or agents many new directions being taken by ports. PICTURE EDITOR are, individually and collectively, Kelly Bundy referred to in this clause as the The IAPH technical committees also met in Savannah to discuss ‘IHS Group’. The IHS Group as- sumes no responsibility and shall the intermediate results of their work plans. Improvements to the EXECUTIvE EDITOR not be liable for any loss, damage IAPH website were discussed as G Paul Gunton or expense caused by reliance on well as port-related legal issues. The We hope that the paul.gunton@ihs.com the information or advice in this document or howsoever provid- Port Planning and Development ed, unless that person has signed EDITOR-IN-CHIEF a contract with the relevant IHS Committee reported that it has Group entity for the provision of global economy will Tony Slinn this information or advice and completed two projects – Port tony.slinn@ihs.com in that case any responsibility or Financing and Economic Impacts of liability is exclusively on the terms and conditions set out in that Port Development. The final reports recover firmly ASSOCIATE EDITOR contract. Any dispute concerning are available on the IAPH website. Aya Fujinami the provision of IHS services is subject to the exclusive jurisdic- The basic framework of the Busan IAPH tion of the English courts and ph@iaphworldports.org governed by English law. World Ports Conference from 23 The opinions expressed are not to 27 May next year, including the necessarily those of IAPH or the registration fee and overall agenda, was approved at the board EDITORIAL & PRODUCTION IHS Group and the inclusion of IHS Fairplay an advertisement implies no meeting. Thanks to the efforts of Busan Port Authority we can look endorsement of any kind by IAPH Lombard House, 3 Princess Way or the IHS Group of the product forward to an exciting and stimulating conference next year. Redhill, Surrey RH1 1UP, UK or service advertised. The Board of Directors also unanimously adopted a Resolution Tel: +44-(0)1-737-379-000 IAPH is unable to accept any liability for the consequences of on Piracy in light of the recent increase in piracy acts, particularly Fax: +44-(0)1-737-379-001 any inaccuracies, errors or omis- in Somali waters. As the leading association for the ports industry, Web: www.ihsfairplay.com sions in this publication. IAPH expressed its support for seafarers and stakeholders Printed by Buxton Press Limited, Palace Road, Buxton, Derbyshire, England associated with shipping. The accounts for 2009 were settled and new members of Executive Committee were confirmed. It was also agreed that Israel would host the next mid-term meeting in 2012. All these events were made possible thanks to the tremendous efforts of the host, Georgia Ports Authority. I would like to take this opportunity to express my deepest appreciation to Curtis Foltz and his excellent staff at GPA. PH & Ports & Harbors | July 2010 
  • NEWS Port updates JWP BACK ON TRACK The planned 2.7M teu JadeWeserPort at Wilhelmshaven is now due to open in August 2012 – nine months later than planned. The accord, signed by port landlord JWP Realisierungs and concessionaires Eurogate and Maersk, ends months of uncertainty over the Photos: US Coast Guard commissioning of the facility. SPANISH PORT REFORM Spain’s parliament has passed a ports reform bill aimed at improving competitiveness. The bill had been amended to curtail the threat of strike Deepwater Horizon surrounded by skimming vessels action by stevedores. Stevedores from Gulf ports take precautions the current labour pool will continue to handle ro-ro trades, but Spain’s minister of public works, José Blanco, claimed reforms would lead to a 2.5% annual growth at major ports, thanks US Gulf ports have taken channel for the Port of New of Mobile’s anchorage. Vessels to a reduction in costs for port users. precautions to try to prevent oil Orleans. “Only a handful of ships inbound to the port have from the Deepwater Horizon have had to undergo cleaning and continued to skirt the spill area ZEEBRUGGE BUY-IN gusher from entering their have only caused delays of up to where possible. APM Terminals and Shanghai channels and harbors. Both the 45 minutes,” Port of New Orleans The Port of Mobile said in June International Port Group (SIPG) have Port of New Orleans and the Port spokesman Chris Bonura told P&H. it did not anticipate closures or sealed a deal whereby SIPG will of Mobile – now also threatened The US Coast Guard has also delays despite oil coming ashore acquire a 25% share of APM Terminals by the spill – have set up several established an offshore vessel on the Alabama coastline. “With Zeebrugge for €27.16M ($33.7M). “We decontamination sites that are decontamination site at the Port contingency plans in place to celebrate that we have taken our standing by to clean oil from handle vessels in the event heavy relationship and mutual commitment ships. Ships have been advised to oil hits our channel, we do not to a new phase,” stated APMT’s CEO for manoeuvre around oil slicks foresee any reason to close the Asia-Pacific Region, Martin Gaard where possible to avoid the [Mobile] and further disrupt our Christiansen, at the signing. APMT and heavier oil. economy,” said James Lyons, SIPG are co-investors in the 4M teu The National Oceanic and director and CEO of Alabama State annual capacity Shanghai East Atmospheric Administration Port Authority. Container Terminal. recently established a new ship Government agencies have also anchorage site at the mouth of mobilised their resources to CANAVERAL’S TANKS the Mississippi River for ships to prepare for surface oil slowing Canaveral Port Authority and energy undergo inspection and oil down shipping. trader Vitol have celebrated the decontamination before entering The fact that the oil is escaping opening of the new $120M Seaport the Port of New Orleans. so far below the surface may have Canaveral. The 24 storage tanks, Several such sites were set up Beach oil spill efforts on the contributed to the relatively light located on the north side of the port, after 22 April, when the Deepwater Louisiana shoreline coating of ship hulls so far. “This is will be used for fuel oil, gasoline, jet Horizon rig capsized and the very different to a tanker spill – the fuel and bio-diesel products. Seaport Macondo well ruptured. As P&H oil is spread out because it’s Canaveral is the single largest went to press, an estimated 50M coming up through the water investment in the port’s history. gallons of oil had bled into the column and the currents are Gulf, devastating a 100km stretch going to act on it subsea,” ANTWERP-BRAZIL DEAL of coastline. A containment cap explained Lt Michael Patterson of Antwerp Port Authority has agreed an on the ruptured well had partly the US Coast Guard. MoU with Brazil’s ports during a visit in reduced the spill, but fears are Early August is still seen as the May by the Belgian port’s CEO, Eddy growing that the hurricane season outside cut-off for plugging the Bruyninckx. APEC-Antwerp/Flanders will exacerbate oil pollution along leaks, by which time operator BP is Port Training will organise port-related Gulf coasts. expected to have drilled two relief training and help on further Inbound and outbound wells at the site down to depths of development and modernisation of cleaning stations have been set up 5,000m. Heavy fluid and then their partner’s port infrastructure. both offshore and inside the USCG vessels have been busy concrete will be used to stop the Southwest Pass, the main shipping skimming oil since April oil flows.  July 2010 | Ports & Harbors
  • NEWS Behind China-Israel accord Port updates China and Israel have signed a stands to reap the rewards of the bolster co-operation with China deal to increase trade to boost deal, especially given its recent as growth falters in Europe, IHS VIRGINIAN ACCORD shipping volumes. According to capital injection of $450M to Global Insight pointed out, Virginia Port Authority is to lease APM IHS Global Insight, the agreement strengthen its business capacity noting that Israeli exporters are Terminals’ Portsmouth, Virginia, will pave the way for a “significant” with key partners. reeling from the sharp terminal for 20 years at $40M a year. extension of total credit, allowing Zim’s finance chief, Allon Raveh, depreciation of the euro. Yearly volume incentives could push for up to $400M in transactions, a declared that the cash boost and The China-Israel trade deal will the value of the deal higher. 50% increase on previous years. company restructuring had benefit Israeli exporters that use Negotiations over the terms had been China-Israel trade is already allowed the company to “reinvent shipping by providing them with in hand for almost two years. APMT’s thought to have topped $4Bn, itself” in terms of stability and incentives such as “fast, accessible Portsmouth facility is the third-largest added Global Insight. operational performance. and simple credit” while container terminal in the USA. Israeli shipping company Zim Israel has been seeking to facilitating business. FINNISH EXPORTS HIT Finland’s port workers’ strike in March New targets for Vietnamese shipping damaged the country’s exports, according to IHS Global Insight. Vietnam has set new targets to ensure that the maritime ambitions – which could set the country on Exports in March – including paper, shipping and shipbuilding sectors contribute more a collision course with Japan, South Korea and China. machinery, transport equipment and than half of its GDP within a decade. Vietnam would develop its national fleet to a electronic products – contracted by 3% Do Duc Tien, the deputy director-general of capacity of 8.5–9.5M dwt, able to carry 110–126M year-on-year, according to data from Vietnam Maritime Administration, told government- tonnes of commodities a year by 2015, he explained, Finland’s National Board of Customs. run media outlets: “With the support of foreign and and nearly 13.5M dwt and double the freight by 2020. local investors, our maritime economy could The fleet of nearly 1,600 ships totalled 6.3M dwt UK REVIEWS ITS PORTS contribute 53–55% of GDP by 2020.” last year, up from 1,200 ships and 4.38M dwt in 2007. The Office of Fair Trading has begun an This would be a dramatic rise from the current 30% Ho Kim Lan, secretary-general of the Vietnam Ports examination of ownership and control the sector contributes. It is the first time a top Association, acknowledged that the scheme would across the UK’s inventory of economic bureaucrat has been so candid about Vietnam’s significantly shake up shipping. infrastructure, including ports. The study will also cover airports, car parks, and energy and water networks JNPT bids to be finalised to assess how different kinds of infrastructure ownership affect outcomes for consumers in these The bidding process for the fourth markets. A Conservative-Liberal container terminal at Jawaharlal Democrat coalition government has Nehru Port Trust (JNPT) will be been in power in Britain since May. completed by the end of the year, deputy chairman N N Kumar told THAMESPORT ENERGY P&H at the India Ports and London Thamesport has taken delivery Logistics Conference in Mumbai. of a second transformer for BritNed − Kumar, who is also the interim a joint venture to construct an chairman of the port, confirmed electricity link between the Isle of that, of the nine bidders, seven Grain in the UK and Maasvlakte, have qualified for the next phase Rotterdam. The transformer is one of of screening. 14 destined for the project, which are As one of India’s more designed to ensure an efficient ambitious port projects, it connection between the transmission involves conversion of the networks in Great Britain (400kV) and existing 300m long liquid cargo the Netherlands (380kV). berth into a container berth. This Photo: JNPT will be extended by 700m SECURITY REMINDER enabling the new terminal to India has reacted to intelligence handle 2.4M teu annually. warnings about possible seaborne The first phase is targeted for Bidding for a fourth terminal at JNPT will be completed this year terrorist attacks by reiterating its port completion in 2013 at a cost of security requirements. Its ports have Rs40Bn ($850M). Another 1,000m The three terminals at JNPT to speed up implementation of reissued circulars demanding crew lists berth will be constructed in the together handled a record 4.06M port projects, many delegates and pre-arrival notification of second phase for which the teu during fiscal year 2009/10 told Ports & Harbors that they merchant vessels entering Indian ports timeline has not been set. The two ending 31 March. were sceptical that mega projects be submitted to the navy, coastguards berths together will be able to While acknowledging efforts at major ports such as JNPT and the DG of Shipping. handle a total of 5M teu in a year. made by the Indian government would attract operators. Ports & Harbors | July 2010 
  • NEWS The jack-up vessel Kraken Port updates alongside, now homeported in Great Yarmouth SOVFRACHT EXITS PORT Multimodal transport group Sovfracht to the deepwater harbor to has decided to sell out of two port support its operations, currently terminals in the Russian port of St focused on two Round Two Petersburg. The company said it wants offshore wind projects – Greater to dispose of its stake in the Gabbard off the Suffolk coast and Sovmortrans and Sterch terminals as Walney in the Irish Sea. part of its strategy to exit the maritime P&H has learned that EastPortUK end of the transport sector, in order to has held exploratory talks with focus on logistics and land transport. several consortia that have won Round Three contracts to build OFFSHORE STORE DEAL North Sea windfarms, including Bremerhaven, Europe’s fourth-largest East Anglian Offshore Wind, the container port, has won a two-year group chosen to build a 1,000- contract – with a one-year option turbine farm near Great Yarmouth. period attached – to provide storage East Anglian Offshore’s interest for German utility group RWE. Starting in the port has been endorsed by mid-2011, the German port will use its programme director Jason 8% of its 8M teu capacity to store and Martin. “With a deepwater harbor, handle windmill equipment for the generous quay space and Photo: EastPortUK 300MW Nordsee Ost wind park available land, EastPort UK developed by RWE Innogy. provides an attractive offering for developers and manufacturers of KHERSON GRAIN offshore windfarms. We have Construction is under way on a new been impressed by the strong grain complex at Ukraine’s port of local support for development. Kherson. Costing about $4M, the facility will occupy 0.5ha, have a 24,000-tonne capacity and be able to Great Yarmouth The east of England is well located to capitalise on the new opportunities that are arising in unload 350 tonnes an hour from railway wagons and 250 tonnes from trucks. The complex will be built in two expectations the European offshore wind market,” Martin said. EastPortUK CEO Eddie Freeman phases: the first focusing on the Ports on the UK’s east coast are homeporting two self-propelled said he believed the port had the logistics infrastructure, the second the vying for contracts to construct jack-up vessels that are purpose- facilities, the experience and the actual expansion. and transport wind turbines to built for installing turbines, in its location to service the UK’s the world’s biggest offshore wind recently completed $110M multi- Round Two and Round Three PORTSMOUTH LINKSPAN energy projects, which will be purpose outer harbor. windfarm developments. New investment at the UK’s built later this decade in North The ‘Seajacks’ are owned by The Port of Great Yarmouth, Portsmouth Commercial Port has Sea waters up to 60m in depth. private equity firm Riverstone comprising a deepwater harbor meant the installation of a new EastPortUK, in Great Yarmouth, Holdings, which is planning a new and river port, has been privately linkspan drawbridge on its number has staked its claim by office/warehouse complex close owned and operated since 2007. two ferry berth, increasing the flexibility of its operations. New vessels can now be accommodated and ferries transferred from other berths, Commodities get stuffed in Charleston allowing uninterrupted service in the Box carriers good at stuffing commodities into the cargo to port, the port authority explained. event of a vessel being out of schedule. containers could soon benefit from a new public- If the partnership is successful in generating more LD Lines’ fast ferry Norman Arrow is private partnership at the Port of Charleston. exports, box ship operators will benefit from the already using the new linkspan, as is The South Carolina State Ports Authority (SCSPA) port’s 15.5m-deep channel, allowing vessels to take P&O’s Pride of Bilbao. is teaming up with 14 rail-served warehouses near on heavier export loads and additional containers to the port in a marketing and sales scheme fill vessels to capacity. “Having the deepest water in CREATING CORRIDORS targeting exports such as cotton, lumber, wood the southeast US allows the carriers to really max The $750M Maputo Corridor project pulp and food products. The commodities will be out export loads,” said SCSPA president Jim will see trade through Mozambique’s transferred from rail to ocean containers at the Newsome. He added that for every foot (30cm) of main port – currently being dredged nearby warehouses. water gained, an ocean carrier can handle about to 9.4m – leap to 48.6M tonnes a year Transferring commodity cargo – typically heavier 100 additional loaded 40ft containers. “That’s good by 2030, hopes Rui Santana Afonso, than import containers loaded with finished goods – news for everyone involved in the movement of the port’s development director. saves the shipper transportation costs while cutting that cargo, from the warehousers to the dock the pollution that would have come from trucking workers and beyond,” he said.  July 2010 | Ports & Harbors
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  • NEWS Cash & Cargo ZIM RAISES READY CASH Zim Integrated Shipping Services has taken the first major step in its plan to sell two subsidiaries to raise cash. The Israeli box ship company signed an MoU with a foreign company to acquire an undisclosed Zim subsidiary for $130–170M, parent company Israel Corp stated. The preliminary agreement is subject to due diligence, which should be concluded by 9 July. MONTREAL EXPANDS Montreal’s Cast terminal will use C$5.1M ($4.8M) from the government and the same amount from the Montreal Port Authority to expand its capacity. Sylvie Vachon, the authority’s president and CEO, said the scheme Box exports from the Georgia’s port of Savannah rose by 30% year on year in April 2010 would enable Cast to handle two ships up to 300m in length at the same time. The expansion, to be completed by early 2011, would also expand box Post-Panamax plans handling space. Georgia’s lawmakers have international marketplace and GPA, which oversees the Port of approved an allocation of $68.4M ensure the efficient and timely Savannah, increased 16.4%, with MARCO POLO RECORD in the state’s 2011 budget to access of Georgia-based products auto and machinery volumes at Demand for funding from the EU’s deepen Savannah’s harbor and to markets around the world,” said the nearby Port of Brunswick Marco Polo transport scheme has allow post-Panamax box ships to Georgia Port Authority executive increasing 75.9% year-on-year. reached a record level this year. The call. Under the Savannah Harbor director Curtis Foltz. Port officials attributed the Executive Agency for Competitiveness Expansion Project, the Savannah GPA spokesman Tom Swinson gains to the weak US dollar and & Innovation, which manages the River’s navigational channel will told P&H that at high tide the strong foreign demand for programme for the EC, said it has be dredged from its current port can already accommodate American exports. “Trade received 101 applications for funding, 12.8m to 14.6m. 6,800teu ships. He added that projections remain optimistic, from 70 in 2009 and 46 in 2008. Completion is expected in once expansion is complete, with growing economic demand 2015, a year after the Panama “the tide will no longer be a replacing the recent increase ICTSI RIDES BOOM Canal expansion increases the limiting factor”. caused by inventory International Container Terminal maximum draught of vessels In April, a 30.4% year-on-year replenishment,” Foltz explained. Services (ICTSI) posted revenue from travelling to and from the US east rise was registered for export He added that the volume 1Q10 port operations of $120.7M, an coast from 12m to 15.2m. containers, the primary driver of increases in most commodity increase of 30% on the same quarter “The completion of these an overall increase in container group sectors “signals a last year. EBITDA was $56.6M, 47% projects will improve Georgia’s business at the port of 25.7%. continued economic recovery in higher than that generated in 2009, competitiveness in the Overall tonnage for April 2010 for most global markets”. while net income attributable to equity holders of $22.8M was up 107%. The latter figure was mainly due to an increase in volume brought Credit crunch returns? about by a surge in global trade. After being waylaid by the private-sector credit Terminals had been developed and acquired on crunch, shipping faces a new threat from public debt, the assumption that massive compound annual FOS STILL GROWING warned Hofstra University associate professor Jean- growth rates would trump competitive pressures. The Throughput at leading French cargo Paul Rodrigue. “This isn’t over. The first part of the belief, said Rodrigue, was that “the pie would be port Marseille-Fos topped 29M tonnes crisis was commercial default; the second part will be bigger, so everyone would get their share”. to the end of April for a 6% increase on sovereign default,” Rodrigue told the Caribbean But more conservative growth implies that some the first four months of last year, with Shipping Association conference in Curaçao in May. terminal facilities will lose out in a ‘zero-sum game’. April traffic underlining the first- Terminal investments were made between 2000 This could lead to closure or divestiture by some quarter upturn in container volumes and 2008 on faulty growth estimates, he maintained. terminal owners, predicted Rodrigue. and local steel and chemicals output. A portion of pre-crisis throughput was “credit-driven He added that the past decade’s rise in export- Container traffic rose 17% to 3.3M demand”, with that ‘bubble’ now shifted from the driven economies may be reassessed “because the tonnes and 331,396 teu. private sector to governments (and certain private- other side of the coin is that you need import- sector interests bailed out by governments). driven economies”.  July 2010 | Ports & Harbors
  • NEWS Maasvlakte CMA CGM goes to Mobile Cash & Cargo progress Box operator CMA CGM added the Port of Mobile, Alabama, to its Asia– US east coast rotation in a move that will also open up the TAMPA’S A2 RATING Mediterranean, Africa and Middle East to US exporters. CMA CGM is Moody’s Investor Service has affirmed Maasvlakte 2, Rotterdam port’s also adding the South Korean port of Busan to the all-water route. an A2 rating for Tampa Port Authority’s land reclamation project, is “This new service offers excellent transit times and helps us grow approximately $145M revenue bonds. proceeding according to our business with Korea and China,” Alabama State Port Authority It also provided the port authority schedule, with over half the CEO Jimmy Lyons told P&H. “We are particularly excited at the with a ratings outlook of “stable” for estimated 240M m3 of sand expanded opportunities CMA CGM brings to our regional exporters the fiscal year ending September required having been placed that trade in the Far East.” 2009. The port is working on a variety by mid June. The PEX3 rotation will serve Singapore, Hong Kong, Chiwan, of projects including expansion of its The construction of the first Shanghai, Busan, Panama Canal, Manzanillo, Houston, Mobile, Miami, container facilities. quay wall for deepsea container Jacksonville, Savannah, Charleston, Tangiers, Jebel Ali, Singapore. terminal Rotterdam World CMA CGM is a 20% partner in the $300M container terminal at the SLOW NY-NJ RECOVERY Gateway is making progress and Port of Mobile, which opened in 2008, along with Maersk and the port Container volumes at Ports of New contractors have started authority. After losing box services during the height of the downturn York and New Jersey rose in the first building the hard sea defences. last year, the PEX3 service adds a fourth service to the port, with a fifth quarter, but are still recovering from A start has also been made on planned before the end of the year, said Lyons. the worst year in a quarter of a interface projects to ensure it The French Line also recently announced that it had returned to century. The second-largest box port connects seamlessly to the port. profits in the first quarter of this year. area in the US had a 9.8% rise year-on- year to 564,000teu, while exports were up 9.4%. The port’s quarterly box Double barge service volumes were still 6% below 2008 volumes for the same period. Peel Ports is utilising river COLOMBO BOX SURGE tranpsort to handle its Box cargo volumes at Colombo have container increase risen significantly in 1Q10, even exceeding the numbers handled in the few months – driven by supply corresponding period in 2008 before chains looking for a lower-cost the recession. solution to serve northern and From January to March, Colombo central Britain. The further increase handled 993,166 teu, an increase of in the use of the Ship Canal 27% from 1Q09, according to the Sri demonstrates the desire of many Lanka Ports Authority. The port, which organisations to use water to get is a major transhipment centre for their product as close to their South Asia cargo, handled a record customers as possible.” 360,861 teu in March. The growth in container volumes has been driven by, for BARCELONA RAIL LINK example, shipping lines such as Barcelona Port Authority has agreed to Hapag Lloyd and CMA taking invest €9.1M ($11.2M) in a new Photo: Peel Ports advantage of the canal to save on standard-gauge rail link between two road miles and CO2 emissions and terminals and the French border. The imports from Ireland being barged line will connect the port’s Principe to Ellesmere Port. d’España box terminal and Costa Quay More than 300,000 containers a shortsea terminal with the border, the Peel Ports is commissioning a Manchester, serving as a “green year still travel by road between authority said. double barge service on the highway” alternative to the southern UK ports and northwest Manchester Ship Canal in motorway network. As well as England, and over a million road STRAIT TALKING northern England to handle reducing traffic congestion, each journeys are made annually when France and Italy plan to ask the UN to growing container volumes journey will save 180kg of CO2 the the rest of northern Britain and bar ships carrying oil and other arriving at the port of Liverpool. emissions, creating the potential Ireland is included. potentially hazardous cargoes from The capacity of Peel Ports’ existing to save an additional 2,000 tonnes “The continued growth of the passing through the Bouches de barge service has doubled from of CO2 a year. barge service is a positive example Bonifacio strait between Corsica and 160teu to 320teu per journey, Stephen Carr, head of business of the capability and potential of Sardinia. They estimate that 130,000 achieved by tying two barges development for the Port of the Port of Liverpool and the tonnes of dangerous cargo transits the alongside each other, pushed by Liverpool and Manchester Ship Manchester Ship Canal and its strait each year. They also plan to ask a single tug. Canal, said: “The Port of Liverpool very important benefits to the IMO to class the strait as a The expanded barge service has seen a significant increase in businesses and the environment,” Particularly Sensitive Sea Area. operates between Liverpool and container volumes over the last said Carr. Ports & Harbors | July 2010 
  • NEWS Dredging BEIRA TO EXPAND Van Oord has won a Mozambique government contract to create an access channel, berth and turning basin dredging contract worth €37M at the port of Beira. Awarded by Portos e Caminhos de Ferro de Moçambique, the work will take about 18 months to Photo: WFP Photography complete. About 3M m3 of the dredged material will be used to reclaim land for a coal terminal. FREETOWN ORE BERTH Marine surveyor Fugro has won a €5.3M site investigation contract from Sierra Leone’s African Minerals to plan Fos 2XL is scheduled for completion in 2011 for an ore loading berth and approach channel dredging at the port of Freetown. The project includes nearshore and onshore geophysical Fos to be reconfigured surveys and geotechnical laboratory Box handling at the Fos deepwater existing terminal under the The new scheme has been agreed testing and is part of a larger project facility in Marseille is to be scheme drawn up by the port’s by the port and future Fos 2XL associated with the development of reconfigured, P&H has been told. executive board and operators. operators Portsynergy (jointly the Tonkolili iron ore deposit, 200km The existing Graveleau box The terminal will continue to owned by CMA CGM and DP east of Freetown. terminal is likely to be converted – handle containers, but can also be World) and Mediterranean at least in part – to other activities, used for general cargo, as well as Shipping Company. COSTA RICAN PORT while six container gantries now at ro-ro and heavy-lift traffic. Trade union officials at Fos said A Royal Haskoning study has put a Graveleau will be transferred to Fos 2XL, which is expected to they had already been given a $950M price-tag on a plan to build and the new Fos 2XL terminal. begin operating early next year, written guarantee that bids for the operate a new port in Costa Rica’s Marseille plans to invite had been intended to complement Graveleau terminal would maintain eastern Limón province. The 1,500m2 proposals to redevelop the Graveleau, which is near capacity. its activity at a good level. terminal will be developed 10km from the existing Moín and Limón port facilities over two phases. The first involves dredging and construction of Not all ports to benefit from canal sea defences and 900m of quay; the Panama Canal expansion will leave some US and could develop round-the-world post-Panamax strings second will add 600m of quay. Overall Caribbean ports disappointed, speakers told the and serve America via feeders from Caribbean hubs. completion is planned for 2016. Caribbean Shipping Association conference in May. Not all Caribbean hubs will benefit. “It would make “There will be a boom in Caribbean transhipment, sense for carriers to select the larger hubs for the VICTORIA GO-AHEAD with smaller ships calling in US ports than many US larger ships and discard smaller hubs,” Rodrigue Transport Canada has given planning ports foresee,” predicted Halcrow maritime sector suggested to delegates. permission for a $19M, 2.63ha marina director John Saylor. Relatively few US east coast and Both Rodrigue and Saylor noted the possibility that to be built in the Port of Victoria. Gulf coast ports will be able to unload the larger US west coast ports might compete successfully with Developers still need to obtain the ships efficiently, he said. the Panama Canal, paring deployment impacts when permission from the city of Victoria. Hofstra University associate professor Jean-Paul the waterway expands. Federal fishing regulations will limit Rodrigue cited the “global equatorial conveyor belt” “Is it possible that Panama could lose market share the time available for dredging. scenario. When the expanded Panama Canal reaches even with the expansion? Yes: it’s not Panama’s call; capacity parity with the Suez Canal in 2014, carriers it’s the carriers’ call,” asserted Saylor. WATERWAYS OF WASTE Jakarta’s waterways are dredged routinely four times a year, but that frequency will need to be increased if Saudi moves forward with privatisation they continue to be blocked by cables, Saudi Arabia has taken a step involved with oil are excluded way for Al Lith, which is intended pipes and dumped garbage, according towards privatising its ports by from the privatisation. as a back-up port for Jeddah. to the Jakarta provincial government. announcing that it will establish The scheme covers six Saudi transport minister Jabara The blockages cause floods and traffic an independent company to commercial ports and two Al-Seraisry said his government has jams affecting up to 19 districts manage the facilities. industrial ports, plus a ninth port spent about 40Bn riyals ($10.7Bn) adjacent to the waterways. No timing was given for the to be developed at Al Lith on the on port development in the Red start of operations, but facilities Red Sea coast. Planning is under Sea and the Gulf. 10 July 2010 | Ports & Harbors
  • NEWS More ore Poole makes splash in 1Q10 Dredging for Atlas The Port of Poole, on England’s south coast, has increased its bulk- carrying operation, reported James Stewart, the port’s CEO. The recent HAZIRA BERTH OPENS boost in business includes additional exports of clay to Spain – work that Access channel dredging is still under Western Australian mining will be welcome at Poole to offset a 20% downturn experienced in last way at Hazira, India, but the company Atlas Iron has struck a year’s economic crisis, Stewart said. 53,000dwt bulker Malavika was deal with Port Hedland to The port will continue to focus mainly on shortsea shipping, he added. recently able to inaugurate the port’s boost its sales at a time of Poole’s future projects include a review of its moorings policy, the newly constructed 550m-long strong iron ore prices. installation of an LPG tank and the purchase of a new LPG-run plant. deepwater berth. Built by Essar Port Hedland Port Authority Stewart said that last year he attended a meeting regarding the Shipping Ports & Logistics, and one of has granted Atlas permission Proposse Project, which is assessing the possibility of container and ro-ro India’s largest dry bulk terminals at to make additional shipments services between Poole and Portugal, Spain, France and Ireland. 27.2M tonnes per year capacity, the between June and September project is part of a drive to increase 2010 from the port’s Berth 1, capacity from 76M to 158M by 2013. ahead of the commissioning of the new Utah Point Honduras cruising planned SYDNEY LOOKS TO SUEZ common user facility. Developers have confirmed plans for the first mainland cruise port in Nova Scotia’s Sydney Marine Group has Atlas will export up to one Honduras, Banana Coast, to be located in Trujillo Bay. The $20M project plans to dredge Sydney Harbour at a shipment a month in Panamax will feature a new pier capable of handling two post-Panamax vessels cost of C$38M ($36M). The Canadian vessels, enabling 180,000– and 4,600m2 of retail space. The pier is expected to be open in 2012. group aims to develop the port’s cargo 240,000 tonnes to be Before that, Banana Coast is seeking cruise customers that will anchor capacity to cash in on ships coming exported, while the company in Trujillo Bay and bring passengers in by tender. through the Suez Canal and wants to concurrently accumulates a The project is being developed by Grande Trujillo Authoridad (GTA), build a dedicated box terminal costing substantial ore stockpile for a partnership between the municipality of Trujillo, local landowners led an estimated $189M. The local Cape Utah Point, due to open later by Life Vision Properties, and Miami’s Global Destinations Breton Regional Municipality has this year. Development. “Discussions with several premium cruise lines are pledged $1.8M towards the dredging. Atlas MD David Flanagan said already under way,” said GTA, noting that the project has been under the company expected to discussion since 2004. “We are putting together the final pieces of GARDEN ISLAND FEARS generate strong operating what will become the western Caribbean’s newest cruise destination,” Plans to dredge Sydney Harbour’s cashflows, even after allowing added Life Vision CEO Randy Jorgensen. While there are currently no Garden Island area are causing concern for the modest additional costs large-ship calls to mainland Honduras, Bay Islands – particularly Roatan that it will spread contaminated of using smaller ships. – have generated considerable cruise business in recent years. sediment. The Australian harbour’s sediment is polluted by tributyltin (TBT) from anti-fouling paints formerly used on commercial and naval vessels. Freight terminal for Cochin Local media suggested that dredging will adversely affect marine life and even human health when it is spices, palm oil and coir. Its transported through residential areas introduction has been prompted to a disposal site in western Sydney. by Cochin’s growth as a hub for India’s export-import trade. NAVY AIDS JAXPORT The port has been earmarked as The Port of Jacksonville has a major container transhipment commended a dredging project facility to rival Colombo, which authorised by the US Navy at the port’s currently skims off considerable Mayport Naval Station. “It takes about Photo: DP World Cochin quantities of cargo from India. The a mile out of our 14-mile post- terminal, on Vallarpadam Island, to Panamax deepening project that’s be operated by DP World, will be under study, helps the cost-benefit built in three phases, with the first- ratio for the US Army Corps of phase construction due for Engineers and makes the project more completion by June. Starting from likely,” said port spokeswoman Nancy Construction work at Vallarpadam terminal, Cochin about 600,000teu a year, the port Rubin. Her comments follow tentative will be able to take 8,000teu ships approval for the dredging project by DHL has enhanced its Indian via Colombo in Sri Lanka. and handle about 3M teu annually the Florida Department of freight services to take advantage The service, which began in when complete in 2014. Environmental Protection’s Bureau of of a new ocean cargo terminal in early May, is operated by DHL’s in- DHL has broader plans to Beaches and Coastal Systems. The Cochin, on the southwest coast. house carrier Danmar Lines and is expand LCL services globally, basin will be dredged to 16m, The less-than-container-load (LCL) intended to reduce transit time by Christoph Remund, chief involving the removal of 4.8M m3 that weekly service connects the port up to three days for businesses executive officer of DHL Lemuir will be sent to offshore disposal sites. with Europe and North America such as those engaged in trading Logistics India, disclosed recently. Ports & Harbors | July 2010 11
  • Fighting for funding Need to attract investment to your port development during the economic downturn? Port consultant Michel Donner advises a realistic and reasoned approach T he 2008 financial crisis has been widely terminal project up and running. The pre-crisis True respite from the crisis is generally not described as “unprecedented”. As well as motto in the port and shipping industries was, expected to be seen before 2011. When unprecedented it was also unforecasted, justifiably, to secure and develop new port recovery does come it will not apply uniformly which is even worse from a risk management capacity able to serve the seemingly endless to all regions. For instance, Brazil has perspective. Container volumes in 2009 growth of global trade. Port authorities, weathered the economic downturn much dipped abruptly by between 15% and 30% operators, lines and users were making insistent better than most, but during this time it has year-on-year, depending on the location, in appeals for more capacity development commissioned very little new port capacity. In a world that had never before experienced opportunities, but unsurprisingly toned them 2008, Brazil was suffering from heavy port such severe and sustained negative growth. down by late 2008. Environmental congestion and, in spite of an impressive In response to the drop in volumes and considerations are gaining wider recognition, ongoing dredging programme, there are revenues, terminal operators and shipping lines which is contributing to the long lead-times. concerns that history might repeat itself when have scrambled to renegotiate their The scarcity of financing adds a further throughput returns. In India too, congestion is commitments. Many lines have tried to element of complexity. already returning to the port complex of postpone or cancel part of their vessel Recovery might be slower than recent Nhava Sheva near Mumbai. newbuilding programmes and to renegotiate container volumes would suggest. First-quarter Limiting capacity is a tactic that seems to charter rates. In May 2010 it was reported that 2010 figures on the emblematic Asia–Europe have worked for the shipping lines. In contrast a South Korean shipyard had received a $70M route almost returned to the same levels as in to reports of widespread over-tonnage, irate cancellation fee for not building three 2008 during the same quarter, but, as observers shippers are complaining about the container ships. Lines have also reportedly rightly note, this is fragile and could be shortlived. difficulties they are experiencing in trying to achieved drastic reductions in terminal tariffs. The rebound may be related to temporary ensure that their cargo is not short-shipped Terminal operators, too, have tried to reduce restocking and could still be spoiled for the liner (see pp 40–41). Photo: iStockphoto their exposure by renegotiating some of the industry by the premature injection of additional Some lines are now offering premium ‘priority’ components of their concession agreements tonnage by the shipping lines themselves. In the freight rates, which guarantee that the cargo will with port operators, such as volume meantime, renewed concerns about European be loaded on the intended vessel. That has guarantees, deadlines and royalty levels. sovereign debt are dampening the apparently prompted some shippers to resort to a practice It can take 10 years to get a greenfield encouraging overall economic news. dubbed ‘phantom’ or ‘ghost’ booking, which 12 July 2010 | Ports & Harbors
  • OPEN FORUM involves booking the same shipment with several lines, in the hope that at least one will load it. Certain lines have responded in turn by imposing a no-show surcharge. Short selected shipments, rollings and no-shows – the technical and nightmare of supply chain operators, ship and construction terminal planners – seem to have become options must continue endemic. A corrolated widespread container to make sense, appropriate shortage will be a fact of life for shippers over to the location, topography, the next six months. realistic volumes and investments. Easy money has gone for the foreseeable Recent history has shown us that volume future. Ports may also have to adjust their expectations about what can be financed. For example, projects with less than 25% equity guarantees can be self-deluding. Over- ambitious, poorly timed or unadapted public tenders are unlikely to find candidates. Public partners investment by the project promoter run the risk of not even being looked at. There has also Ideally, a project should be progressive and modular, with finely tuned market-related of PPPs will need been a reduction in both the scope and the duration of loans. Against all of these thresholds that trigger staggered phases of investment and expansion. A particularly to work on making their tenders for port challenges, however, it is still important to seek attractive configuration is when a concession private money, given that public funding includes an already existing facility – possibly sources have been affected too. to be overhauled – that can be operated early The public-private partnership (PPP) will remain a major vehicle to develop port on during the concession period, providing early cashflow to the concessionaire while the projects as attractive facilities, but within a reasoned framework. PPPs were meant to attract private-sector expansion is being constructed. For projects involving major civil works, the as possible efficiencies to the public sector, and to employ concessionaire should be given some leeway private finance where public funds were within mutually pre-agreed parameters as Michel Donner: Port consultant lacking or could be better used elsewhere. The regards the rhythm of construction and crisis has not changed this. commissioning of ‘slices’ of terminal, in Most, if not all, terminal operators have been accordance with throughput evolution. compelled to realign their portfolios and Today’s ‘new normal’ will dictate that the methods, especially for risk assessment. There public partners of PPPs will need to work on has been no significant casualty among the making their tenders for port projects as main international port operators, just some attractive as possible if they are to appeal to restructuring. The players remain the same as private operators and investors. The post-crisis in 2008, but they are far more cautious and, as period will not bring back ‘business as usual’, a consequence, the onus is more on the public but it might bring back business as it should side to attract private partners to port projects never have ceased to be. PH & and get them on board. New PPP port projects will need to be lean, Michel Donner previously worked as a port and frugal and tailored to realistic and prudent maritime transport specialist at the World Bank combinations of costs and prospects. The More info: micheldonner@yahoo.com Ports & Harbors | July 2010 13
  • FeATUre Covering against risk Transport insurance consultant Sam Ignarski reminds landlord ports of the dangers of inadequate coverage P To be sure of orts and terminals are an important sector for in the USA would conceivably put the largest insurance protecting your the marine insurance industry and the cause policy to the test, but for landlord ports the insurance assets, consider of great competition between commercial in place is usually a backstop to a well-run legal and risk the worst-case insurers. Over the past decade the number of insurers management operation where the quality of tenants scenario when and underwriters who have decided to serve this and their insurances undergoes regular scrutiny. buying insurance technically demanding group has grown. Landlord ports in many places expend considerable Many things can and do go wrong within ports and energy on ensuring that they have legal and constitutional terminals. More importantly, those that might consider exposures suited to their quasi-governance roles. Given they have little to insure, such as purely landlord ports, that this is an industry that has experienced massive may be surprised at the number of possible claims that change through privatisation, it’s important for a port Photo: ‘Port in a Bag’ supplied by Muji/ iStockphoto could be filed against them. to employ professional expertise when finalising its Large main haul ports will have insurance in place insurance needs. with a liability limit of, say, $100M per accident, probably The wide spectrum of risks means that clients and bought as part of a bulk purchase. The reference point their brokers should exercise great care when placing for risk managers is the largest thinkable casualty they those risks with insurers. A modern port or terminal can imagine. A marginal, run-down operation in a operation may own a high-value portfolio of property developing country might have as little as $500,000 and equipment, often spread out over many locations each accident. and perhaps even several countries. The insurance of Insurance of this kind is usually purchased to cover waterfront property worth hundreds of millions of loss of real estate or equipment caused by some form dollars is no role for an insurer that’s short on solvency of disaster. Few incidents of this nature have occurred, or, indeed, lacking knowledge of the problems. but the loss of crane inventory at the Port of Busan, Port authorities that are involved in activities away South Korea, in Typhoon Maemi in 2003 should serve from the waterfront are likely to have a comprehensive as a warning to us all. A large environmental exposure policy. A case in point is the Port Authority of New York 14 July 2010 | Ports & Harbors
  • INSUrANCe and New Jersey, which owns the World Trade Center. to getting good value when purchasing insurance. Others own power plants, bus stations, airports, Such ports will have a ‘working layer’ built into a policy, heliports and even farms. which means that predicted losses will be covered by The hands-on port operator will have easy-to- insurance purchased off of the commercial market. understand exposures in relation to employees, If a working layer is not in place, it will give rise to a borrowed employees, the owners of cargo and yearly ‘burning cost’, where the forthcoming insurance ships, equipment, quays and wharfs, not to mention period is calculated based on previous years’ claims. liabilities to third parties, governmental authorities and In this case the size of the limits and the value of the the environment. The operator will supply services, insurance guarantee bear thinking about. usually on terms described to customers under a user Many landlord ports require cover for $10M each agreement, and will legally attempt to be treated as accident and some will buy much more than this. In the the servant of the ship, liable for no more than the ship absence of any regular pattern of claims, the essential would be. These terms have grown more similar across considerations are the quality of the insurance and the container ports to make them link in with supply certainty that the limit will cover the worst nightmare chains’ insurance needs. scenario. In plain words, it is inadvisable to buy very At first glance, landlord ports have little or no cheap cover from an insurer of limited or mediocre exposures to these operational risks. They sign solvency with no experience of large port casualties. agreements with their tenants and operating Other exposures may be overlooked by a landlord companies and then take a back seat. They are rarely port, too. Its collection of elderly equipment and quays sued. More often, they will observe the leases and may be insured only on a current-value basis, which agreements by the operating tenants within the port. could prove problematic after a storm or earthquake. The landlord port’s role and exposure may be defined It may find there is no cover for operational damage by law by longstanding port or harbor regulations, caused by tenants or in respect of unoccupied or be set out in berth assignations and other user space that has no tenant. The limits of liability under agreements. But the landlord port often remains the insurances may be along the modest lines of traditional ultimate guarantee against legal vacuum. Should a covers where $10M per accident or occurrence was tenant or operator within the port cause harm or loss considered sufficient. And when pilot services are to the interests of others but subsequently become privatised, claimants may attempt to sue the landlord insolvent or unable to pay – just such a case occurred port authority as the employer. after a cargo warehouse fire in April this year at an Unanticipated claims have arisen for landlord inland container terminal in south Delhi – claimants ports from the activities of pilots, visitors and security will very possibly try to hold the landlord liable. contractors; from their responsibilities for buildings, Landlord ports may feel themselves to be remote navigation and draught at berths; and from long-term from operational realities, but there are many pollution. There are still old, poorly maintained ships opportunities to end up in the front line. examples are under charter and when they sink at berth they may when a tenant goes bankrupt, a ship is operated by turn out to be uninsured. Suddenly the obscure official an insolvent company or the insurer of an operator from the port office is the man on the spot. has withdrawn its cover for non-payment of premium. Landlord ports can go for long periods without even where a port authority consists of little more any sign of a claim or problem, only to be surprised than a building full of administrators, exposures may when the improbable rules of fortuity come into still exist in relation to residual operating staff such as play. They often pay little for their insurance and do security personnel or lease negotiators, or in relation to not lose sleep over their exposures. Complacency the acts of dishonest employees. is not advised, however. A good risk manager who Well-managed and understood landlord ports is paid to fret over and game his exposures and to are usually considered ‘contingent’ risks by insurers, think ‘what if’ thoughts is a good addition to any port whereby another insured interest will usually respond administration looking to stay ahead of its exposures in the event of a claim. Understanding this is the key in the modern world. PH & Gothenburg: a new landlord Gothenburg port authority acquired landlord status in February this year, and the terminals that already had experience handling other terminals of the same kind,” he tendering process to run the three terminals it formerly operated has already been said. “This move will also allow the port authority to focus on its own business of initiated. Port CEO Magnus Kårestedt said the city of Gothenburg had decided to seek developing the port as a hub.” specialist operators to run its terminals – ro-ro, car and container – to maximise their The tendering process is being co-ordinated by Jonas Ericson, a mergers and profitability. “Now we are a totally separate port authority with no input in the day- acquisitions specialist at the Gothenburg office of PricewaterhouseCoopers Sweden. to-day running,” he told P&H. He said the new goals of the port authority were to He told P&H he hoped the process would be completed by early 2011. market the Gothenburg hub effectively to support its operations and concentrate on A spokesman for the port authority said that Gothenburg’s insurance exposure making the port more efficient. had not changed recently, but would not comment on how the exposure “We decided it was better to find good private management for each of the three would change once the tendering process had been completed. Ports & Harbors | July 2010 15
  • FEATuRE Get clear on contr@cts Solicitors Philip Thomas and Martin Hill explain the finer details of what ports and terminals should consider before entering an IT contract T echnology is critical to successful operation in negotiated contract, whereas for the purchase of the port or terminal environment. Enormous off-the-shelf software a set of standard terms and sums of money are invested in technology conditions (STC) may suffice. Generally, the STCs used every year to increase efficiency, maximise productivity, in technology contracts are those of the supplier, improve existing technology, enhance safety and but there is a trend for larger buyers with dedicated boost profitability. Whatever type of technology is procurement functions to insist on their own STCs. being supplied, it is in the interests of both the buyer Ideally, businesses should aim to secure a reasonably and the supplier to enter into a properly drafted written balanced contract. A contract that is one-sided risks contract. Major technology orders that have hit the damaging goodwill between the parties and may set headlines this year include: the agreement up for failure, particularly if it includes Sydney Ports Corporation awarded a $12M contract unrealistic or unworkable obligations. The parties may to technology company SOFRELOG for the supply of a also incur significant costs in both management time vessel traffic services system to track more than 4,500 and legal fees if they have to renegotiate the contract international ship movements annually to make it more equitable. ABB won a $40M contract from Zhenhua Port A party that has entered reluctantly into an onerous Machinery Co (ZPMC) to supply crane automation at contract may behave less flexibly when it comes to various locations. implementation. For example, a supplier that feels it For substantial investments like has been put under pressure to agree to aggressive these, both parties need to be very pricing may be inclined to charge whenever the clear that the contract they are customer requests any additional requirements about to sign is fit for purpose. or variations after the contract has been entered It is common for organisations, into. A balanced contract is a ‘win-win’ solution particularly those that have a long- for all parties. standing relationship, to rely on just Many disputes concerning technology a verbal understanding or regular agreements arise from the differences course of dealing to govern the terms between the customer’s expectations of of their agreement. This approach can what will be delivered and those of the create uncertainty for both supplier and supplier. Disagreements can emerge not customer, leaving them vulnerable if only in relation to the technology itself the technology fails or if the relationship – the functionality, for example – but also breaks down. related services such as installation and A written contract can reduce the scope commissioning. If software maintenance for any subsequent dispute. It should was to be supplied, to what response set out the key terms of the agreement, including details of what is expected of each party. The contract should also allow parties to agree in advance the remedies that should apply if something goes wrong and to agree an appropriate apportionment of risk and liability between them. The form of written contract that will be most appropriate will generally depend upon the type of technology being supplied. For example, the supply of multi- million-dollar terminal operating software involving a significant project implementation timetable will normally require a bespoke, 16 July 2010 | Ports & Harbors
  • IT CONTRACTS times did the supplier commit and what were to be the and such a breach may entitle the supplier to terminate sanctions for its failure to comply? Best practice is to the licence or claim damages. ensure that the contract sets out in very clear terms the Another essential element of the more complex scope of the technology and services should be drafted type of technology contract is what constitutes with input from technical experts wherever possible. acceptance of the software. This is a key definition, as Price and payment provisions can prove contentious it often triggers other provisions of the agreement, in a technology contract. The buyer’s objective will be notably payment obligations and the commencement to achieve price certainty through the inclusion of as of warranty periods. The parties should take time to much of the technology and services in the overall price negotiate this issue carefully at the outset so as to as possible, giving the supplier minimum opportunity reduce the likelihood of a dispute later. to increase the charges. By contrast, the supplier will Limitation of liability is a notoriously contentious want the right to levy incremental charges where point when negotiating technology contracts. The the technology or services supplied expands beyond supplier will tend to seek to limit its liability so far as what was envisaged when the contract was signed. If possible, often leaving the buyer with uncapped software is licensed on the assumption of a specified liability. Conversely, the customer’s aim is for the terminal throughput volume or a certain number of supplier to accept a high liability cap so that, should it user licences, the supplier may want a mechanism to ever need to bring a claim against the supplier, losses increase the licence fee according to any increase in can be recovered up to the full level of liability. throughput or numbers of users. It is a fine balance to ensure that the contract imposes A supplier will generally seek to achieve a long the right level of liability on the parties. If either sets the contract term, particularly with regard to support liability cap too low, it may be unenforceable on the agreements, because a guaranteed revenue flow grounds of unreasonableness, leaving one or other increases profitability and enables it to predict future exposed to unlimited liability. cash flows more accurately. The buyer usually resists Equally, too high a limit may expose a party to being tied down to a lengthy agreement unless the an undesirable level of risk and perhaps the cost of financial case is compelling, as it will prefer the freedom obtaining additional insurance to cover the risk. A to take advantage of new and improved technology good starting point is to consider a worst- as it emerges, possibly from a competing case scenario arising from the other party’s supplier. Too short a contract term can breach of contract or negligence and who disadvantage the buyer, because it is best placed to insure against that risk. removes the certainty that the supplier A particular concern for buyers in the will supply technology and services for current economic climate is the risk of the a set period. supplier ceasing to support the software in If a port or terminal wishes to transfer the future. The buyer can protect against this its commercial activities, perhaps risk by using escrow provisions. These require by selling its business to a third the supplier to deposit a copy of the software’s party, it should consider whether source code in escrow with a nominated third it can assign the rights to use the party on the basis that the source code would technology to the new operator. be released to buyers should specific events Typically, software licences are – such as the supplier’s insolvency – occur. not transferable without the prior A fee will generally have to be paid for permission of the licensor. Some maintaining an escrow arrangement. Suppliers suppliers charge an additional are reluctant to agree to such provisions because fee as a condition of giving their their source code is valuable intellectual property. consent. The buyer will be in Nevertheless, some suppliers will agree to escrow breach of the licence if it arrangements if the circumstances for releasing seeks to transfer its rights the software are rigidly defined and the nominated to use the software escrow agent is a trusted provider. without consent, Wherever an operator invests in technology, it is vital to ensure that there is a written contract in place. Any such contract should be reviewed by professional and technical experts to ensure it is fit for purpose and provides adequate protection for the parties. PH & Photo: iStockphoto Philip Thomas and Martin Hill are associates at Holman Fenwick Willan, a law firm specialising in international commerce More info: www.hfw.com Ports & Harbors | July 2010 17
  • FEATurE We already have some of these concepts in our terminals Erik Nyheim Chief operarting officer, WWL Planning for zero emissions Jem Newton speaks to WWL about its long-term plans for a greener type of port W allenius Wilhelmsen Logistics (WWL) has footprint of our terminals,” Nyheim said. To reduce the been alerting its automotive customers to effect of its operations on the environment, WWL has the regulatory storm about to break upon identified nine design ‘building blocks’ (see box). the shipping industry. It warned that emissions taxes WWL’s revolutionary car terminal design integrates being introduced in the next five years in Europe and processing and distribution activities on one multi- North America threaten to increase the cost of sending storey site, optimising its supply chains while eliminating cargo by sea. “Our customers still may not realise what CO2 and other harmful emissions from terminal and is about to happen and we urgently need to think processing activities. through supply-chain assumptions with them,” WWL’s The terminals will be carefully located to minimise global head of environment Melanie Moore told P&H. total transport emissions and the environmental WWL prides itself on being an environmental pioneer. impact on neighbouring communities; construction Five years ago, it anticipated this rise in regulatory materials will be locally sourced wherever possible, shipping costs by unveiling a zero-emissions vessel require limited maintenance and be recyclable; energy design, E/S (Environmentally Sound Ship) Orcelle, as consumption for lighting, heating, cooling and water its first contribution to a greener industry. Now it has will be minimised. turned its attention landside, unveiling in London a An optimal mix of renewable energy sources to new design concept, the Castor Green Terminal (CGT), power the terminal will reflect local conditions at each which could be a major advance in operators’ efforts to CGT, and port and industrial partners are expected to eliminate emissions in and around ports. play a key part in developing these installations. Castor is the Latin name for the beaver – an renewable electric power from these sources will endangered species – which WWL has adopted as the allow vessels to turn off their engines at berth thereby brand name for its new design of car terminal. reducing vessel emissions. Environmental services such “WWL is also using the beaver symbol because it as hull and propeller cleaning will be offered, and all shows the connection between land and sea and it’s equipment used within the terminal will be powered also very industrious, which we like to believe our by electricity or by fuel cell. Terminal and processing terminals are as well,” said Erik Nyheim, chief operating operations are to be subject to an optimal flow pattern officer and head of terminals and inland services.. based on lean production techniques, allowing products “We want to significantly reduce the carbon to move efficiently through processing, storage and 18 July 2010 | Ports & Harbors
  • POrT DESIGN Building blocks Graphic: Maritime Colours/Photos: Jem Newton WWL has identified nine issues that are key to its Castor Green Terminal design: 1. Location study will assess the impact on the local community and ecosystems before the terminals are built 2. Compact layout and design to minimise impact on local community, including multi-level storage 3. Use of recyclable construction materials; type of materials will depend on location 4. Reduce utilities and energy consumption: wind for cooling, solar energy for heating and lighting, and smart lighting to eliminate inefficiencies 5. Optimum mix of renewable energy sources depending on the location 6. Vessel power supply (shore-to-ship power) provided by renewable energy generated by the terminal to limit emissions in the port 7. Lean management and lean production to reduce waste in both time and materials, with the aim of having an optimal flow of products through the terminal and fewer movements 8. A customer service centre, unique to the Castor Green Terminal, where WWL will invite customers to view the terminal operations and see the products being processed. Customer events and training will be hosted at the centre and the local community will be involved in its activities 9. Waste handled in an appropriate way, either by being recycled, used for heating or reused. “We already have early prototypes of some of these concepts at our terminals,” he pointed out to P&H. “For example, at Zeebrugge we already collect and store rainwater and use it as the vehicle washing base and for flushing toilets. All the wash bay water is recycled and used again. We have put sensors in the central lighting system to control the lighting and cut down unnecessary energy use. We have also Efficient design… distribution areas. This integrated approach also aims added extra insulation in the walls and roof so we the Castor concept to eliminate bottlenecks and to generate efficient can control the temperature.” could be in interchange between road, railway and ocean carriers. In Baltimore, WWL uses only electric vehicles to operation by 2020 Eventually, more than 80% of all WWL’s products are transport its workforce around the terminal and expected to leave the terminal by rail. exclusively low-sulphur fuel for terminal equipment. Waste from all operations, such as workshops, Finally, for its recently completed Melbourne off- paint shops and washing facilities, will be considered dock facility – where WWL offers ‘high and heavy’ as a resource that may be recycled, used for heating technical services – recycled concrete was used in or reused. the construction and its water-sensitive urban design Nyheim said that WWL plans to have the foundations includes rainwater gardens, bio-retention swales and a of this system in place by 2012, focusing on examples closed-circuit recycling system. Heat-reducing skylights of best practice that are already in operation. provide natural lighting and the facility uses natural gas to power the paint shop and also to heat water. “But hitherto these prototypes have been the result of local initiatives and we want to turn some of them into standard practice across all sites,” Nyheim commented. We urgently Between 2013 and 2015, WWL will identify pilot sites and start experimenting with the technology need to think to develop solutions and prepare the full-scale concept. “We hope to incorporate these in a full-scale about supply chain greenfield CGT by 2020, as well as starting to upgrade our existing terminals,” he said, emphasising that the assumptions final design had to make financial sense before the first CGT was built. And how transferable are these concepts to other Melanie Moore types of terminal? “We are focused on car and ro-ro Head of environment, WWL terminals, but maybe there could be some inspiration in this for other types of terminals,” he replied. PH & Ports & Harbors | July 2010 19
  • FeATUre Protection from the elements An early awareness of climate-proofing Photo: iStockphoto could serve ports well, experts tell P&H O ur climate is changing – this is a widely should be taken into account when planning new known and accepted fact. Most ports now infrastructure, he advised. fully understand why it is changing and Becker has carried out extensive research into many are implementing more environment-friendly ports’ responses to climate change (see P&H March) modes of operating to prevent further damage to the and suggested that ports make it their priority to environment. Less considered are the byproducts of keep up to date with the latest climate science. “Ports climate change such as sea level rise, to which ports will need to plan in a way that incorporates larger are naturally vulnerable. Port consultants and designers degrees of uncertainty than they have in the past.” He are starting to take sea level rise into account when told P&H that climate projections offer a “probability designing or updating port infrastructure. distribution for potential impacts”. He added, however: Martin Mannion, global head of maritime and ports “The science will never be able to predict with 100% at consultancy Scott Wilson, believes ports should accuracy what the new climate conditions will be.” be nervous about climate change in relation to their Current projections of sea level rise range from 0.6m infrastructure. Sea level rise is “a gradual thing”, he told to 2m by 2100, he said. P&H, but ports should start taking it into consideration Certain ports are obviously more vulnerable to sea now, especially if they are planning new developments, level rise than others. Those in low-lying areas will have and they should, relatively soon, also look at climate- a problem in the future; indeed, Mannion told P&H: proofing existing installations. “There will be legislation “Some ports will already have a problem.” for it eventually,” he said, adding that the USA has The areas that face the highest risk are those that already started introducing such measures. experience storm events or are near hurricane belts, “Ports should be preparing in that they should Becker pointed out. “The potential doubling of Category be working to assess the potential local impacts to Four and Five storms by 2100 could have major their facilities and surrounding areas,” agreed Austin consequences. However, other ports that experience Becker, a PhD student specialising in environment flooding and storm events will also be susceptible to and resources at Stanford University. Any projections changes in these phenomena. Sea level rise is an issue 20 July 2010 | Ports & Harbors
  • CLIMATe-PrOOFING in many areas as well,” he said, adding that new research shows that historically the western Atlantic and Pacific basins have shown the highest sea level rise. As the water rises… Storm surges are the main concern for many coastal Martin Mannion, of Scott Wilson, listed the possible ports, especially those in the eastern Atlantic and implications for port facilities as: western Pacific basins, which are subject to hurricane Higher water levels altering vessel elevation in relation to and typhoon activity. Sea level rise can exacerbate the height of the wharf, possibly affecting the operation of storm surges, Becker explained, adding that ports port-side equipment should consider historical storm events and factor-in Floodwater exceeding the capacity of the existing yard more intensive events in the future. They should also drainage system consider the contribution that sea level rise will have Disruption to operations, such as impacts at container terminals on storm surge levels. where the area behind the wharf is used for container storage, Ports should assess their risks now by checking their and costs of damage to goods, plus future insurance costs coastline and wave exposure, Mannion asserted. If a Reducing the viability of operations if the port is regularly port is built on ‘soft’ ground, due to glacial rebound or affected by flooding and losing customers as a consequence. soft clay or mud that has not been treated, the port “could be sinking anyway”, resulting in a “two-fold problem if they are affected by sea level rise as well”. events when determining materials storage plans. He advised ports to check the level of the port and Breakwaters are significant elements of a port in quayside with the water level and to look at rainfall levels relation to sea level rise, said Mannion. If these are not from regional data sources, such as those supplied by high enough more waves will go over the top. “If a the US Army Corps of engineers or the Meteorological port is on the coast the breakwater is more likely to be Office in the UK. If necessary, he suggested, the port damaged, or waves can enter a harbor more easily and should obtain professional help to interpret the data. damage ships at berth,” he commented. Ports should be lobbying regional governments to Scott Wilson has been working with the Port of obtain information and secure funding, and also to Colombo, Sri Lanka, on its efficiency and expansion raise awareness of the issue. He told P&H: “Do it now project.“The breakwaters and reclamation are designed to get an understanding of future expenditure, so that to take into account sea level rise, for example and there are no surprises in five years time.” wave action over an extended lifetime,” Mannion said. IAPH’s Port Planning and Development Committee Some regions are already being forced to investigate has taken an active role in raising awareness of the solutions. For example, the San Francisco Bay Area is issues and as part of its 2010–2011 work programme at risk of flooding from a combination of high tide has included a project on ‘Adaptation measures against levels and rising sea levels. California’s Climate Change climate change’. Center believes that sea level rise in the bay could be Becker believes that specific recommendations as much as 1.4m by 2100. The bay’s Conservation and will need to be developed at a local level. The Development Commission sponsored a competition types of change that he foresees are: elevating and to create a concept to address this risk. In response, constructing new facilities to a level appropriate for Moffat & Nichol, in collaboration with Skidmore Owings expected climate conditions at the end of the century; & Merrill, designed the BayArc – an environmentally considering how water levels may affect surrounding sensitive fabric membrane that spans the Golden Gate infrastructure and working with agencies outside the Bridge, offering flood protection at critical periods. port to ensure the whole port-system is appropriately For ports globally, climate change may not be a prepared; constructing buildings to withstand higher threat in the immediate future, but by the end of the wind speeds; and considering potential flooding century it could be a reality. PH& Going deeper The approach channel and turning basin of Itajaí Port Complex in Brazil is to be dredged to cope with possible flooding. Since the second half of May, dredging companies and consortia have been submitting their bid proposals and technical concepts to the Special Secretariat of Ports. The winning bidder will carry out the government-funded $35M dredging project that requires deepening of both the basin and approach channel from 11m to 14m. Dredging works will also allow the entry of larger vessels and have “a major positive effect on the state’s economy,” said the port. Teconvi berth two at Itajaí after the flood in November 2008 Ports & Harbors | July 2010 21
  • COVER STORY Secure locally, think globally IAPH’s Port Safety and Security Committee chair, Peter Mollema, is optimistic about the wider role of port access information systems R otterdam’s relationship with its identification credential, XS-Key, goes back to 1998, when it was introduced to make movement of cargo through the port more efficient. The first of two systems was CargoCard, a chip card and biometric hand detection system that ensured the correct driver was collecting their designated container (see panel, right). Between the September 2001 terrorist attacks on New York and the introduction of the ISPS Code three years later, the port took the opportunity to adapt its existing system to meet its new security obligations. The ISPS Code also stimulated the implementation of PortKey in 2003; it is a similar system to CargoCard but intended for all those regular visitors to the port who are not truck drivers. Today, the port’s logistics and security needs are combined through the two strands of the system, CargoCard and PortKey, which between them have at least 20,000 users. This example of a port access system demonstrates how simple it can be to integrate two components, security and logistics, that are now essential to a port environment. Yet, surprisingly enough, from a global perspective few systems of this kind have been brought into use. Access elsewhere in the world Within the Benelux countries, the situation is more encouraging. The Antwerp, Belgium Alphapass XS-Key concept is being implemented beyond Ashdod Port, Israel licensing system for truck drivers and seafarers (P&H, Nov 2009 issue) Rotterdam, and Amsterdam has adopted the Amsterdam, the Netherlands CargoCard element of XS-Key CargoCard system, as have certain hinterland Felixstowe, UK RHIDES (see page 28) terminals. Large shippers are also starting to Ghent, Belgium electronic ID cards (see page 28) adopt CargoCard technology. Lager-manufacturer Helsinki, Finland access pass Heineken, for example, uses it to monitor the drivers Rotterdam, the Netherlands XS-Key and transport of its goods from the brewery to the Hamburg, Germany identity card port. This could be considered a first step towards a USA Transportation Worker Identification Credential (see page 25) national identification card. Zeebrugge, Belgium Alphapass Antwerp, in neighbouring Belgium, is one of Source: EU PORTIDS study, individual ports many ports that are adopting systems similar in principle to XS-Key (see page 28). Now that this 22 July 2010 | Ports & Harbors
  • PORT SECURITY type of technology is becoming more widely used there is no reason why it cannot be adopted at an international level. In 2008, a European Union study Part of a port was carried out to ascertain what systems were already being developed on a case-by-case basis. community system The study’s conclusions suggest that an EU-wide system is a real possibility. CargoCard and PortKey together make up XS-Key, Port of Photo: iStockphoto Changing opinions at a national or international Rotterdam’s access system. It was created by the Rotterdam level is one thing, but when it first introduced XS- Port Authority, trade association Deltalinqs and private Key, Rotterdam Port Authority had to convince its company Secure Logistics. René Besselink, managing director users of the system’s efficacy. It was crucial to get the of Secure Logistics, told P&H: “The CargoCard is a community parties involved to accept it, so the port authority system for transport. The PortKey is a community system for launched a programme to stimulate the process and the Port of Rotterdam.” In 2003, when PortKey was introduced, support the movement. it was decided to privatise management of XS-Key, allowing CargoCard users quickly saw the advantages: Secure Logistics to develop the system and bring it to the shorter stays on the terminal, reduced entry time commercial market. into the port. The Dutch drivers’ organisation, Since its introduction, CargoCard has been updated to TNL, was involved in the card’s introduction, incorporate a wide range of security applications, including to reassure the drivers and get their vehicle registration recognition, truck monitoring and limiting support. When the time came to launch drivers’ access to just their own stack of containers. Once a PortKey there was very little resistance, visitor has completed the registration process, access to all because CargoCard had already been participating terminals is possible. This takes place at stations rolled out on a large scale and people throughout the port, where the visitor swipes the card and could see that it worked. places their hand on the biometric reader. Initially, many people expressed Information about the visitor and their employer is stored concerns about their privacy, on both the card’s chip and a central database, but the but the port’s partner in XS-Key, biometric information is stored on the card only. This Secure Logistics, operates in a very information can only be read using Secure Logistics software. transparent way and most people The port can allow a person access at any time, but also, by accessing the system are now blocking their card, deny them access. happy with it. The port ensured “The use of biometrics guarantees that the card and that the privacy policy was in line cardholder belong together,” said Besselink. The cards are with national regulations and made issued by the company and so the port has very little contact sure that the access control system with the administration of the cards. “Secure Logistics is a complied with the provisions of the trusted third party, so the terminals trust the information on ISPS Code. the card,” he said. One of its many users is the customs “The fact that you can combine this technology with other department and, although it was not systems can be a powerful logistics tool and has a very big involved in developing the system, it did future,” Peter Mollema, director of Port Planning and take part in the trials and now considers Development, told P&H. “Overall, the implementation and that its own access to the port has improved uptake within the port has been very smooth. The most since the credential was introduced. Other common query has been regarding hygiene,” he said, adding users of PortKey are dangerous-goods workers, that placing one’s hand on the biometric reader carries the maintenance workers, river police, port police and same level of exposure as touching door handles and money. the port doctor. “The Rotterdam Port Authority is lucky that Secure Logistics After the initial implementation phase was have jump-started the use of biometric information in the port completed, the system has proved easy to use. It environment. It is something that many ports in the world takes care of itself and is integrated into the port’s should consider when developing their access security,” daily activities. concluded Mollema. The technology exists and the data protection is in place; it just needs a co-ordinated response to make it a happen. It also requires courage at both national and European levels to see a common access system as an opportunity rather than a threat. Ports should aim to look beyond their physical boundaries and search for ways to integrate their security into the wider logistics picture. A co-ordinated vision now could mean a more integrated and streamlined future. PH & Peter Mollema is director of port planning and development at the Port of Rotterdam Ports & Harbors | July 2010 23
  • COVER STORY PORT SECURITY Photo: USCG/ Luke Clayton TWIC’s final measure Paying for equipment and seafarer access are weighing heavy on US port operators as the Coast Guard readies the final phase of its ID card, reports John Gallagher U A US Coast Guard S ports have known for years that they will of seafarer access while keeping their port secure. officer checks a eventually be required to spend significant For ports that are still struggling to find money to worker’s TWIC card sums of money – millions of dollars, in some pay for anything in the midst of a recession, the good in Honolulu cases – to comply fully with the Transportation Worker news is that time may be on their side: the US Coast Identification Card, or TWIC. What they still do not Guard estimates it will not be until 2012 or even later know is how much they will have to pay or the type of that the final rules for TWIC card reader requirements equipment they will need. In addition, they will have to will be in place. make sure that they are providing the appropriate level The down side is that the more time it takes to draw up a final rule the more likely it is that port operators that have already invested in TWIC equipment will find they have spent too much – or not enough. Involvement so far Compared with what a port will actually need once the rules are in place, “it’s possible that the TWIC readers Enrolment/activation Measurement available now may end up costing more money.” Pre-enrolments 1,299,079 That, at least, is the view of Susan Monteverde, vice- Enrolments 1,583,715 president of government relations for the American Cards printed 1,598,659 Association of Port Authorities. “How high-risk a port Cards activated 1,452,503 operation is will likely determine how much capability Average enrolment time 8.84 min their reader equipment will require, whether they Source: US Transportation Security Administration will need biometrics [that can read fingerprints],” she (data correct to 19 May 2010) explained to P&H. Ports that handle hazardous materials should already Ports & Harbors | July 2010 25
  • Gateway to World Markets Superior Container, Steel, Breakbulk and Project Cargo Experience Largest container terminal on the U.S. Gulf Coast Cargo units up to 630 tons directly discharged from vessel to rail car Superior Facilities – and lots of them! 57 general cargo and heavy lift docks with concrete backup areas 8 container docks with 340 acres of paved yard, and growing! Motivated and innovative Customer Service Team We speak “High, Wide and Heavy” fluently Flexible gate and crane hours available Accessibility Direct all-water service connects PHA to the world Served by both major western railroads – UP and BNSF Direct interstate highway access Abundant Skilled Labor “Partners” Continuous workforce stability – decades without labor interruptions Trucking, railroads, warehouses, freight forwarders and the largest project cargo port in the United States The Port of Houston Authority is the largest breakbulk port in the U.S. and the largest container port in the Gulf Coast. Our state-of-the-art container facilities are among the most modern and efficient in the world. PHA’s strategic location offers direct access to a market of over 50 million consumers within 500 miles of the port. Over 25 million square feet of distribution centers near the port and other distribution center areas North and West of Houston are growing fast. Contact PHA today for your cargo needs. Port of Houston Authority | www.portofhouston.com
  • COVER STORY PORT SECURITY Ports that handle hazardous be making plans – if they have not already done so – to upgrade port infrastructure to handle higher-level technology, Monteverde urged. To accommodate any extra electronic cable or wiring associated with high- tech card readers it may be necessary to dig a trench from the port gate to the terminal. But, “if you’re a low- materials should already be risk port, you may want to hold off on purchasing card readers; you might end up being able to get away with making plans continuing to flash a TWIC card,” she said. Monteverde recommends port operators to apply for a federal port security grant to defray the cost jobs. That can ultimately have a bigger threat against of purchasing TWIC reader equipment, and also to security – not having good people available to operate support the waiver of the 25% cost-share requirement the vessel.” that’s in the Obama administration’s budget proposal. Chosen last year by the Coast Guard as one of five “We’re going to need political help if we’re going to TWIC pilot projects last year, the Port of Brownsville, get Congress to waive the cost-share requirement,” Texas, has had experience of both the technological Monteverde asserted. and the human aspects of TWIC. Ports also need to continue to take steps to ensure The port applied for and received a $3.7M federal that both US and foreign seafarers registered with TWIC port security grant in 2007 and used much of the are allowed proper shore access – and those steps are grant for the TWIC programme. Their readers, which more important to port security than the equipment have biometric capability, have been up and running used to read the cards, seafarer advocates maintain. since December. While paying the $132.50 required for a TWIC card “We figured it was inevitable that we would need theoretically allows the holder to gain unescorted the readers so we might as well apply for the pilot, work access to and through a port terminal, individual through the kinks and get it over with,” Brownsville terminal operators still have discretion over the ease deputy port director Donna Eymard told P&H. of access they offer crew members who want to gain The biggest problem, Eymard continued, was getting access to shore for personal purposes. staff and port truckers to learn a new routine. “That “Port operators and terminal managers should care took up the most time – teaching people where to put about proper shore access, because to maintain safe their card, showing them where to put their finger on and efficient operations of the vessels that enter their the machine. In the beginning, drivers would hand the port they have to make sure crew members are being guard their cards to let him handle it, but once they taken care of,” Doug Stevenson, director of policy for got used to using it things went pretty quick.” the Seamen’s Church Institute of New York & New Eymard said crew access is rarely a problem at the Jersey, told P&H. Port of Brownsville. “We gave the port agents escort Some terminals, particularly those that deal routinely training if the crew needs to go anywhere, and our with hazardous materials and therefore have stepped local seaman centre has volunteered to [provide up their security measures, can make life tough for transportation]”, Eymard said. marine crews, Stevenson said. “They’re getting fed up She added that when shore access is restricted it with restrictions that don’t make sense, like the threat usually comes from the ship, not the port. “It’s a way of being commercially prosecuted for things they [vessel operators] make sure they come in and leave wouldn’t be prosecuted for if they worked at other with their full crew,” she said. PH & Waiting on a ‘reader’ rule The Transportation Worker Identification Card is a biometric system issued by the US Department of Homeland Security through the US Coast Guard. Workers wishing to enter a port unescorted must be enrolled in the scheme. This extends to seafareres, making it different to access passes used at other ports. The ultimate form the credential will take is not yet known. At present it is simply a flash pass that must be shown at checkpoints within the port, but the existing card is capable of holding biometric information too. Before the USCG can publish a final rule on the requirements US ports will need to comply with the final ‘reader’ phase of the TWIC programme. To do this it needs to consolidate data collected from the industry as Photo: Crowley Maritime Corp well as the results of port pilot programmes around the country. In December, Brownsville became the first port to finish its programme, but the other pilot schemes, at the Ports of Los Angeles and Long Beach, California, the Port of New York and New Jersey, and the APM terminal at the Port of Virginia, are still in progress. Based on the status of those projects, the Coast Guard does not expect a notice of proposed rulemaking (NPRM) to be issued before next year. Comments received from the NPRM will go towards formulating a final rule, which will not ready until 2012 at the earliest. “It will depend on the amount of comments we get,” Coast Guard Commander David Murk told P&H. Ports & Harbors | July 2010 27
  • COVER STORY Easy RHIDES at Felixstowe CASE STUDY 1 T he Port of Felixstowe is urging other UK ports identify all people in restricted areas and people to to adopt its biometric truck driver identification prove they have a legitimate reason to be there. system, which it claims both improves security Identification is based on a biometric hand scan and speeds up vehicle turnaround. of the driver, who must also carry a portable identity First launched in March 2007, the Road Haulier Identity card that holds personal and company data on an System (RHIDES) is an identity verification system for integrated chip. truck and lorry drivers requiring access to restricted The card number is also recorded against every areas of Felixstowe port. The system was developed container, making the owner of the card directly in response to the ISPS Code, which requires ports to accountable for the cargo. At Felixstowe around 15,000 drivers of container lorries have so far been issued with cards and in early 2009 Hutchison Ports (UK) extended the system to Thamesport. RHIDES has exceeded initial expectations, reported Captain Gary Wilson, head of marine and port services at Felixstowe: “With around 30,000 lorries entering Photo: Hutchinson Ports our gates each week we needed a robust system and RHIDES has been such a success it is no longer top of my security agenda, it is just happening in the background. It enables us to meet and probably exceed requirements under ISPS and by linking the system with our terminal operating system, which records container arrivals, we are able to cut A pocketful of access cards Public versus private pass CASE STUDY 2 B elgium is a good example of an EU member with all the port’s stakeholders to discuss joining the state that would welcome a single Europe- Alfapass system. However, the proposal was rejected wide port access card, because its national on the grounds that it was too expensive. authority for maritime security has been unable to “Arcelor Mittal has over 5,000 employees and, at the reach agreement with its ports on what system to time we looked into it, an individual Alfapass valid for adopt. The country’s main port, Antwerp, and the only three years cost €35 [$42] to buy, plus an extra Flemish port of Zeebrugge currently use a private- €30 per card for the [Alfapass] company to handle sector security initiative called Alfapass, a paid-for data management. Here we have a port access card system that contains the holder’s personal details that only costs €6,” Ghent harbor master Captain Dirk and a colour photograph. The biometric data of the Vernaeve told P&H. holder’s handscan is also saved in electronic format To reduce the overheads that using a private on a chip in the card. security company would incur, Ghent has, since The inland port of Ghent – where facilities include the introduction of the ISPS Code, been trying to an oil terminal and the loading terminal of Benelux’s introduce a system based on the electronic identity largest steel mill, owned by Arcelor Mittal – met (EID) card that every Belgian citizen has to carry. 28 July 2010 | Ports & Harbors
  • PORT SECURITY duplication of effort and simplify the entry process.” use a single ID card to access each port could function Although no malicious attempts to enter the port well. This theory was borne out when we extended have been identified, RHIDES has revealed that some the system to Thamesport and found that most of the drivers had tried to gain access using other drivers’ cards. drivers visiting there were already on our system.” Offenders are re-educated in how to use the system An integrated UK-wide access system would benefit and repeated misuse results in a two-week access ban. drivers too, believes Gareth Huws, general manager at Some users point to problems with the biometric Roadway Container Logistics, whose 100-strong fleet hand scanner, however. Pete Butler, East Anglia area services Felixstowe: “The last thing you want is drivers manager for the Road Haulage Association, was on carrying one card for each port, and having to make the working party that helped develop RHIDES: “The sure drivers register at each separate port, especially biometrics system could be improved. It identifies if they only visit them sporadically. The key to rolling drivers by taking a measurement of the shape of the out nationwide is ensuring that there is one common hand, because everyone’s hand is different, but as you security database and one access card, which RHIDES get older your hand changes shape, which can lead to could provide.” PH& false readings. If the readers get dirty you can also get mis-readings, but that doesn’t happen if the scanners RHIDES could be are kept clean.” In response, Wilson said the machine developed into a has a built-in 10% tolerance for changes in hand shape, single pass it updates stored hand image information every time allowing entry to it is used and security guards regularly clean dirt from all UK ports the screens. Although RHIDES was developed for Felixstowe, the system could be rolled out at container ports across the UK, said Wilson, who is urging ports interested in the system to get in contact: “The nature of the container industry is that the same drivers tend to visit many different ports, so a system that allows drivers to Is a Europe-wide or even nationwide access card for ports likely to be a reality in the future? Stephen Cousins looks to Felixstowe in the UK and Jem Newton considers Belgium’s option Vernaeve pointed out that 80% of all those advisory group for maritime security at Belgian ports, who enter the port already possess an EID but the EID scheme had met with considerable card. Accepting it as an access pass would resistance, particularly from Antwerp. keep down costs associated with the lengthy Captain Vernaeve told P&H that he and the Ghent process of identifying and authorising each port authority would welcome the introduction by the individual who needs access to a restricted EU of a Europe-wide port access card. “It would certainly area of the port. For the 20% who lack a Belgian simplify things here in Belgium,” he said. PH & identity card, a visitor’s card has been designed with the same integrated electronic chip and data structure as the EID. “The problem is that the national maritime Above: The security authority allows the terminals the choice Alphapass used of what system they adopt and do not oblige ports to by Antwerp use the EID card,” he explained. Right: Drivers at Vernaeve continued: “Here in the harbor office we Photo: Port of Ghent Ghent use a use the EID card as the access control system, but cheaper otherwise each terminal has its personal system. So alternative our port officials and surveyors need a lot of cards to get round the different terminals.” He said he had raised the issue at the stakeholder Ports & Harbors | July 2010 29
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  • COVER STORY PORT SECURITY N25 Midleton City Quays N8 Cork tivoli industrial & dock estate N25 Marino Point Passage West 0 2 great island km KEY Cobh Roads N28 ringaskiddy Port of Cork’s domain is wide-reaching and so a suitable solution was required Whitegate to secure this unique site A secure overview sides of the river estuary, and see where the help is needed. Previously, it would have been someone driving around in a car.” The system is evolving all the time and has proved to be easy to upgrade as up-to-date technology Port of Cork is optimistic that its extensive becomes available. The original system ran on video port environment has a secure future and data transmissions, Colfer told P&H. Last year, the radio links were upgraded to secure ethernet links, creating a local area network. “This makes the system T he port, located in the southwest of Ireland, much more difficult to interfere with from passing realised that it had to update its disparate ships,” he said. collection of security equipment six years ago, The port is now using CEM Etherprox intelligent not only to comply with the ISPS Code, but also to find card readers, which are fully integrated into the same a workable security solution suitable for its 15km2 site. system as the CCTV surveillance cameras. To gain Additionally, it wanted to be an approved ‘Gateway’ access to different parts of the port, a port user is port so that it could offer a direct route to the USA. required to carry an access card that must be held Security provider ADT won the contract after a up to readers at various points. The cards provide tendering process, “as it pulled everything together”, different levels of access depending on the identity P&H was told by Captain Pat Murphy, the port of the user and the terminals to which they require facilities security officer. It was able to provide a access, explained Murphy. central monitoring system covering the port’s five The deepwater terminal and the ferry terminal terminals, which are situated in the world’s second- both have card readers installed on the vehicle largest natural harbor. control barriers. Automatic number plate recognition The system consists of access control points and is also in place in these areas. more than 100 CCTV cameras across the site, all of The photographic ‘proximity’ cards hold the which are linked in a network. The small security person’s name, company and details of the access crew can monitor the cameras from two locations they require, and are administered by the port within the port, while management personnel can authority. It also issues photographic identification remotely monitor activity across the port on their to stevedores and dockers, said Murphy, because laptop computers, wherever they are. these are quicker to arrange. As well as providing obvious security benefits, the Murphy is looking to upgrade parts of the port system provides an overview of the level of activity using “fantastic advances” such as mega-pixel across the various parts of the port. “The drive from technology and thermal imaging. “I’m looking one end of the port to the other is nearly 30 minutes,” forward to seeing 21st-century technology in the pointed out Donal Colfer, account manager for the port,” he enthused to P&H, adding that ADT has been Integrated Solutions Group at ADT. “Now personnel proactive in keeping the port up to date with all the can look at the five terminals, situated on different possibilities available to it. PH & Ports & Harbors | July 2010 31
  • FEATURE No plain sailing for US cruising Waning orders plus rising emission curbs add up to limited growth for US cruise ports, reports P&H’s Americas editor Greg Miller T he theme for US cruise ports can no longer be in 2008 and resumed only recently and at a much slower ‘build it and they will come’. Future passenger pace for 2012–2014 deliveries. US cruise ports should throughput will not necessarily be driven by therefore plan for a capacity-induced growth slowdown terminal infrastructure, but by economic, industry and starting in 2012, which could very well persist for several environmental trends. years thereafter. The positive message for 2010 from Carnival Carnival has confirmed a downshift to low- to Corporation and Royal Caribbean – the two players mid-single-digit annual growth over the next five that provide virtually all US cruise-port business – is years. As this estimate includes newbuilds for its that recessionary pain is definitely reducing. Both US European brands, US growth could be even lower. passenger pricing and booking volumes are up this Royal Caribbean has maintained its bearish stance year, admittedly against very depressed 2009 levels. on new orders and it too is focusing on international The negative news concerns the cruise orderbook expansion, which, again, may limit growth in the USA. Alongside at and US emissions regulations. Norwegian Cruise Lines – another major operator in Canaveral, where Deliveries of newbuild cruise ships remain healthy this the US market – remains heavily indebted, so may not numbers of year, thanks to the time-lag between contract signing be in a position to fill the impending gap. passengers are up and launch. Those cruise vessels coming to market now The second challenge for US cruise ports is the on 2009’s figures were ordered before the recession. Orders came to a halt environment – more specifically, the impending low- Photo: Port Canaveral 32 July 2010 | Ports & Harbors
  • AMERICAN CRUISING future itineraries and cut voyage periods within the US Top US cruise ports 2008–2009 ECA and also the expected Canada ECA. This would imply a pullback from New England/Canada, Alaska, Port 2008 2009 Change Hawaii, Bermuda, and Caribbean cruises homeported Miami 2,099 2,032 -3.2% in New York that sail down the US east coast – all of Port Everglades 1,187 1,277 +7.6% which require long sailing periods within the US/ Port Canaveral 1,226 1,189 -3.0% Canada ECA. San Juan 521 507 -2.7% In line to gain from the new rule could be Florida- Seattle 435 430 -1.1% homeported and Gulf Coast-homeported, Caribbean- Long Beach 365 415 +13.7% bound routes – assuming the Caribbean does not San Diego 416 413 -0.7% follow suit with its own ECA. Los Angeles 607 412 -32.1% In the near term, other regional trends and issues New York 477 403 -15.5% have affected US cruise-port volumes. Tampa 393 401 +2.0% According to data compiled by the US Maritime Galveston 403 386 -4.2% Administration, passenger counts at the top 12 US New Orleans 185 243 +31.4% cruise ports – accounting for the majority of total US TOP 12 TOTAL 8,314 8,108 -2.5% volume – fell by 2.5% in 2009. With the exception of Port Everglades, Long Beach, Tampa and New Orleans, these Source: US Maritime Administration (MARAD). These figures differ from official port cruise statistics because ports ports suffered declines amid last year’s recession, with calculate ‘revenue passengers’, which double-count homeported passengers, for embarkation and disembarkation Los Angeles and New York logging the steepest falls. State-specific issues may be the culprit in some cases. Mortgage defaults had risen in states like California and Florida, which probably curbed local passenger sulphur fuel regime imposed by the Environmental business at some cruise ports. In the same way that Protection Agency (EPA). The EPA’s mandate for a vast property markets slump and then recover, renewed emission control area (ECA), extending 200nm from consumer strength could bolster the Mexican Riviera shore, was finalised in December 2009 and approved market out of California and the Caribbean sector out by the IMO in April. It will require the use of 1% sulphur of Florida. fuel by mid-2012 and 0.1% sulphur fuel by 2015. In the primary northwest US cruise port of Seattle, Cruise sources are sceptical that US bunker suppliers the challenge has been Alaska’s oppressive $47 per will have sufficient stocks of low-sulphur fuel available, passenger head tax, which spurred several lines to pull given the environmental constraints on refiners, which 2009–2011 capacity from that circuit. will need to alter facilities to produce new distillates. Alaska’s government has just agreed to reduce The EPA rule does, however, allow for use of scrubber that tax to $34.50 per passenger, prompting cruise technology as an alternative to low-sulphur fuel. lines to drop their lawsuit against the state and The extent to which the EPA rule affects US cruise- pledge future capacity renewal. But given the lead port volumes and routes will hinge on the success times needed for itinerary-planning, Alaska volumes of future scrubber technology, as well as cost and are unlikely to rebound before mid-2012, indicating availability of low-sulphur distillates. Cruise sources that Seattle homeport volumes will remain under privately concede that if scrubber technology does not pressure until then. PH& evolve as hoped, the EPA sulphur rules will definitely affect US itineraries. For example, Carnival estimated in its most recent annual filing that the strictest terms of the US ECA could cost the company up to $200M a year. Rather Sources are sceptical that US bunker supplies will have sufficient than absorbing annual costs of this magnitude, Carnival is more likely to alter its itineraries so as to obtain the greatest profit margin. The US industry fears that, to minimise the need to buy expensive distillates, cruise operators will reroute stocks of low-sulphur fuel Controlling emissions Both the USA and Canada intend to introduce an emission control respectively,” the US Environmental Protection Agency stated. area (ECA) 200nm off their coastlines, enabling them to manage To meet these reduced emissions levels, vessels operating in these emissions levels. It is hoped that nitrogen oxides (NOx) will reduce by areas will need to use a fuel with a sulphur content not exceeding 290,000 tonnes a year, sulphur oxides (SOx) by 835,000 tonnes a 10,000ppm, reducing to 1,000ppm by 2015. year, and particulate matter (PM) by 82,000 tonnes a year. “These In the US, the ECA is part of a wider strategy that also includes reductions would be 23%, 74%, and 86% below current levels, EPA’s Clean Air Act. Ports & Harbors | July 2010 33
  • FeATure Offering easier access Ports can help ships’ crews by providing unambiguous and up-to-date information, P&H learns B More up-to-date ringing in and berthing a large ship at a busy usually been designed to “minimise risk to a point information about port presents numerous challenges for both where it is acceptable”. the port master and pilot. Those challenges are growing Whereas other ports may not offer such tight environment in direct proportion to the increase in size of ships, and efficient operations, he explained that all ports should be made with under-keel clearances and turning circles in and terminals can make changes that could prove available to crews ports becoming ever tighter. Today, only 10% of the beneficial all round: “If you put the anchorage areas to world’s biggest ports are able to accommodate the one side so that the vessel can steam out of the port larger vessels. and keep going straight – just doing something like GAC Training & Service Solutions is a collaborative that can improve safety.” venture of the Gulf Agency Company and the National “A lot of ports have now looked carefully at where Maritime College of Ireland. Its director, Christer Sjödoff, the anchorage locations are to ensure they are not is clear about what is at stake when an expensive vessel directly in the line of sight of the direction a vessel is at the ship-to-shore interface. “An exportation LNG would take. Why have it in the route the vessel would terminal that costs $3Bn to build, with a ship alongside normally take to go to open sea? Why not put it to one valued at $250M, discharging a cargo of LNG valued side?” he questioned. at, say, $20M, represents a significant asset and, by the Information provided by ports can be ambiguous, same token, significant safety, security, environmental said Candelet. Masters need to know the designated and financial risk.” areas to ‘park up’ or drop anchor while waiting to Howard Candelet, an expert on LNG shipping and come into port, he said, adding that it should be a senior lecturer with GAC T&SS, believes that there safe area outside a shipping lane. “Access to clear, up- are several ways in which ports can assist masters to-date information about a port is the biggest issue,” and pilots to bring their ships into port. In particular, he told P&H. “If ports would allow port procedures lessons can be learned from the specialist terminals to be posted on the web – even if it’s password- that handle dangerous cargoes, because they have protected – it would be easier. Ports need to know 34 July 2010 | Ports & Harbors
  • SHIP -TO-SHOre COMMuNICATION If ports would allow port procedures to be posted on the web – even if it’s password-protected – it would be easier Photos: Joachim Affeldt about technical developments so that they can pass acknowledged that new port data sometimes takes a this information on to masters.” while to appear on charts – especially in “derived areas” This information should eventually be incorporated in which other countries’ charts are used, or in locations into official navigation charts – both electronic and where data management is less advanced. paper – but he acknowledged that this is a slow “The further afield it gets, the more problematic it process. “Sometimes it takes a long time for a chart to becomes. With our home waters we liaise with our own be updated. If it is decided to relocate the anchorage port authorities and the like to acquire data and they location it might take three or four years to get keep us more fully informed about developments and that information on to the [official uKHO-supplied] changes. We have got to acquire the data in the first Admiralty charts,” Candelet said. An up-to-date place and that also assumes that we know about it.” website provided by the port could help masters in The uKHO issues notices to mariners, including this interim period. preliminary/temporary notices and chart updating A great many new gas terminals are planned around alerts, to inform them of alterations. Jones encouraged the world and ships are often diverted to unfamiliar ports and other players to send the uKHO information terminals as part of the spot trade. This makes it vital about changes in port arrangements. that port-related chart data is updated as quickly as Hydrographers say it is also a question of prioritising possible. Peter Jones, operations standards manager significant new data – those aspects that have a at the united Kingdom Hydrographic Office (uKHO), navigational impact, such as jetties and breakwaters. Anchorage sites pose a particularly tricky problem, as they may be temporarily relocated. For the sake of safety, some ports have repositioned anchorages that Sharing data, for safety’s sake were directly in line with port exit channels. Candelet is also keen for ports to share other useful The Oil Companies International Marine Forum (OCIMF) has agreed with the Society of International information with visiting ships’ crews by, for example, Gas Tanker & Terminal Operators (SIGTTO) secretariat to allow data from OCIMF’s vessel particulars posting on to their websites the special procedures questionnaires (VPQs) to be accessed online through SIGTTO. required when entering the port. This approach The development will give SIGTTO members greater information on vessels, so they are better could go one step further, he said, by developing on placed to undertake compatibility assessments of vessels about to visit certain ports. One expert the website a database giving hospital information, indicated that the move should boost safety, because it is less likely that a ship will end up at a berth directions to the nearest airport, information on for which it is unsuited. dangerous areas around the port that seafarers should The move is one of several initiatives introduced recently by the tanker industry, including avoid, and even contact numbers for local taxis. “This Intertanko’s opening up of its Terminal Vetting Database, which was announced in February. would help seafarers plan their shore time in advance,” he concluded. PH & Ports & Harbors | July 2010 35
  • MARITIME UPDATE Cleaner ships ahead The northwest European ports Photo: Port of Antwerp that agreed to fund and develop the Environmental Ship Index (ESI) have made good progress with The more ports the technical specifications, making the first presentation of that join ESI, the and are keen that as many major the web-based application at last month’s biennial meeting in more money ports as possible should adopt ESI. “It’s a matter of thinking long- Savannah, Georgia. “We expect to formally launch the carriers will save term,” Tessier pointed out; “the more ports that introduce ESI, the application in September 2010. The more money carriers with high- Port of Rotterdam plans to Toon Tessier scoring ships will save.” introduce ESI in 2011, as do Antwerp environmental adviser “We have also had enquiries Amsterdam, Antwerp, Bremen and from various ports interested in Hamburg – it’s important that some joining the initiative, but have had ports make a start and implement it to put the brakes on that interest in a very robust way so that other offer to complying ships and how of the benefits of simulations is until the webtool is operative,” ports can follow their lead,” Tiedo to use the index, because the ESI that we can show ports and ship added von Bargen. Vellinga, who is leading the ESI group hasn’t prescribed how the operators how the index scheme The so-called ‘Northern Range’ project team, told P&H. application should be used. We will work in practice and what the ports have borne the cost of Vellinga works for the Port of give guidance, but each port impact of the discount scheme developing the web-based Rotterdam Authority and is director should be able to use it in its own will be,” he told P&H. application, but von Bargen said of environmental monitoring for the way,” Vellinga explained. Both von Bargen and Tessier that one issue on the agenda for Maasvlakte 2 project. The voluntary, ‘non-cartel’ emphasised that the initial the future is how the ESI project The index measures a ship’s nature of ESI is emphasised by response they had received from will be financed long-term. “That is emissions and gives a realistic idea one of the other port authorities both international carriers and something that will be discussed of its environmental performance. involved in the development of other ports in Germany and at IAPH board level,” he said. Using the index as a yardstick, the programme. Bremenports Belgium had generally been Both IAPH members and non- participating ports plan to reward environmental director Uwe von supportive. The operators already members are welcome to get ships that improve upon current Bargen told P&H: “How the ESI is introducing cleaner vessels are involved in the ESI project. IMO and European Union emission used remains the decision of each naturally the most enthusiastic More info: www.wpci.nl standards (for full details of the port individually. In fact, EU index specifications, see Ports & competition law would preclude Harbors, January 2009, p36). European ports being permitted “The ESI standard will always be to jointly fix an agreed incentive above EU and IMO compliance to offer owners and operators.” levels for emissions – that’s the Port of Antwerp environmental basic principle of the index; as adviser Toon Tessier said soon as even stricter EU and IMO simulations had been developed rules come into force the ESI that were useful for giving baseline will be raised,” said practical demonstrations of the Vellinga. “Our aim is to start with a index’s uses ahead of the few ports in a kind of pilot year, introduction of the web- with others joining later; we want based application. “One to first make sure the web-based application works so that it can be used easily by other ports.” Although ESI is entirely Phot voluntary, it is part of IAPH’s World Ports Climate Initiative. Ports hope o: iSt that by offering incentives the ockp global shipping industry will be hoto motivated to take seriously its role in reducing environmental pollution in and around ports. “Other ports need to decide what kind of incentives they will 36 July 2010 | Ports & Harbors
  • MARITIME UPDATE United front against piracy The ports and shipping industries unusual and extraordinary threat are pressing for more effective to the national security and action against Somali pirates. foreign policy of the United On behalf of the ports’ States, and I hereby declare a community, IAPH passed a national emergency to deal with resolution on the issue at its Mid- that threat”. term Board Meeting in Savannah There has been disquiet about in May (see SG’s comment on this strategy, which is designed to page 3) declaring its support for prevent payment of ransoms. The seafarers and stakeholders International Chamber of associated with shipping. Shipping is concerned that any US In April the United Nations shipowner, insurer, charterer or Photos: US Coast Guard Security Council issued a shipper interest that is involved in resolution that acknowledged paying a ransom, even indirectly, those countries that had been may be caught by the order’s proactive in prosecuting prohibitions, rendering them suspected pirates and those that liable to fines and/or changed their international law imprisonment of up to 20 years. to criminalise the activity. It drew Securing the crew of a drug-smuggling vessel in the Gulf of Aden ICS also pointed to the attention to certain states that uncertainty over the type of “lack provisions” to bring pirates Intertanko, Intercargo and the cruisers and destroyers in there: checks or due diligence that to justice. International Group of P&I Clubs – we have to have a rethink about shipowners should carry out to It also considered the root are jointly organising an online what we need for policing, and ensure they did not violate the causes of the problem, stating petition to garner public support who’s responsible.” legislation. Both shipowners and that “peace and stability within for the campaign. The main aim is Earlier this year Bimco insurers have been anxiously Somalia, the strengthening of to persuade countries to commit characterised “the plague of seeking clarification from the US state institutions, economic and more resources to combating piracy” in the Gulf of Aden and Department of the Treasury. The social development and respect piracy. It is hoped to deliver at Somali Basin as the most serious department’s Office of Foreign for human rights and the rule of least half a million signatures to challenge facing commercial Assets Control is developing a law are necessary to create the governments by World Maritime shipping, notwithstanding the more comprehensive set of conditions for a durable Day on 23 September. efforts of naval forces. The regulations, which may, according eradication of piracy and armed ITF assistant secretary John Denmark-based organisation to the Federal Register, include robbery at sea off the coast of Bainbridge said that there were supported “a government-based “additional interpretive and Somalia”. It went on to emphasise several ways in which additional solution to the security situation definitional guidance and that the key to Somalia’s long- resources could be accessed, and ashore in Somalia and an effective additional general licences and term security is an effective the petition would help involve legal regime to prosecute pirates” statements of licensing policy”. national security force. both public and seafarers. “A lot of and wants to see an effective In 2009, 55% of worldwide The shipping community has littoral states will eventually have coast guard set up in the area. pirate attacks occurred off Somalia been active in stimulating to pick up the banner – like in the US president Barack Obama or in the Somali Basin. The naval discussion and insight into the Malacca Strait – and take issued Executive Order 13536 in presence has reduced attacks in issue, too. Thirteen organisations – responsibility for their waters.” April, which prohibits the Gulf of Aden, but problems including Bimco, International He suggested that anti-piracy transactions by US persons with persist in the Somali Basin, with Chamber of Shipping (ICS), forces should consider using “specially designated nationals”, pirates extending their range to International Shipping Federation alternative smaller vessels for including Somali pirates. The within 200nm of India’s (ISF), International Transport interdiction operations. “I don’t order states that piracy off the Lakshadweep Islands and within Workers’ Federation (ITF), think we need to have large coast of Somalia “constitute[s] an 30nm of the Tanzanian coast. Shippers promote stewardship of the ocean The newly formed World Ocean Council (WOC) received WOC covers a broad range of marine industries, Torm USA managing director Jesper Bo Hansen support from a number of shipping and chartering including shipping, energy and fishing, and seeks to said the tanker owner saw the WOC as “an important companies at its inaugural meeting in Belfast in June. bring together environmental scientists and business step in the right direction to unite and build on a The WOC, which bills itself as a “cross-sectoral leadership to generate policy initiatives. Rio Tinto marine general joint platform that means we can keep using the alliance on ocean stewardship”, has received the endorsement manager Alistair Fischbacher said: “The World Ocean oceans in a protective and sustainable way”. of ExxonMobil, Rio Tinto, Torm, NAMEPA, RightShip and Council is an innovative, global cross-sectoral forum and The meeting addressed environmental issues in the International Chamber of Shipping, among others. an opportunity to share and exchange information.” shipping, ports and dredging, among other topics. Ports & Harbors | July 2010 37
  • MARITIME UPDATE HNS made practical at MSC The practical problems of implementing a 14-year-old hazardous materials convention have been addressed through a protocol adopted in April by a diplomatic conference at IMO’s Photo: Dietmar Hasenpusch headquarters in London. The International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea was adopted in 1996, but the convention still has only 14 ratifications. International Maritime Organization Verification of goal-based standards for oil tankers and bulk carriers follow a five-tier system secretary general Efthimios Mitropoulos is urging governments to bring the protocol into force as soon as possible. The new protocol states that in the IMO sets standards for ships case of damage being caused by bulk Goal-based standards (GBS) for oil give IMO an opportunity to verify oil tankers and bulk carriers of hazardous or noxious substances (HNS), tankers and bulk carriers were compliance with GBS-related 150m length and above and will compensation should first be sought finally adopted by IMO’s Maritime SOLAS requirements. enter into force on 1 January 2012. from the shipowner, up to a maximum Safety Committee (MSC) at its 87th These guidelines set out the The same date will see the entry limit of about $150M. Where damage session on 20 May. In a move that procedures that must be followed into force of amendments to has been caused by packaged HNS, or by was described by IMO as a “historic to verify that the design and Chapter II-1 of the International both bulk HNS and packaged HNS, the change”, it represents the first construction rules – of an Convention for the Safety of Life at maximum liability for the shipowner is move by the organisation to administration or its recognised Sea (SOLAS), making their $172.5M. This is the first tier in the influence and set standards for body – conform to the adopted application mandatory. compensation regime. ship construction. GBS. Verification takes place in The MSC also adopted further Once the first tier limit is reached, IMO secretary-general Efthimios two stages: first the procedures guidelines requiring the compensation would be paid from the Mitropoulos described the must be self-assessed by the information to be included in a second tier, the HNS Fund, up to a adoption of the standards as “a administration; then those ship construction file. maximum of $375M (including significant and important procedures are submitted to the The goal-based standards compensation paid under the first tier). breakthrough for the organisation, IMO to be audited by an IMO- adopted in May relate to a five-tier The fund will be administered by an not only in terms of how future appointed expert. system (see box below) originally assembly, consisting of all states that are regulations will be developed, but The International Goal-based proposed by Greece, the Bahamas party to the convention and protocol, also with respect to the role that Ship Construction Standards for and the International Association and a dedicated secretariat. The IMO will play in verifying Bulk Carriers and Oil Tankers, of Classification Societies (IACS). assembly will normally meet once a year. compliance, in this particular case, Regulation II-1/3-10 (to give them The adopted standards reflect The protocol will enter into force 18 with SOLAS requirements.” their official title) will apply to all Tiers I to III. months after the date on which certain Governments and international conditions have been fulfilled. organisations have for the past 10 The first of those conditions is that a minimum of 12 states (including four years felt that IMO should have more influence over the structural GBS: the five tiers states each having at least 2M units of standards to which new ships are Tier I: Goals – high-level objectives that must be met. gross tonnage) have expressed their built. The move is intended to Tier II: Functional requirements – criteria to be satisfied to conform to the goals. consent to be bound by the convention. ensure that ships are designed Tier III: Verification of conformity – procedures for verifying that the rules and regulations The second condition requires that and constructed for a specified for ship design and construction conform to the goals and functional requirements. the states that are liable to contribute to design life and that throughout Tier IV: Rules and regulations for ship design and construction – detailed requirements the fund have received during the that life they remain safe both to developed by IMO, national administrations and recognised bodies, and applied by preceding year a total quantity of at least the environment and to seafarers these same bodies, to the design and construction of a ship in order to conform to 40M tonnes of cargo contributing to the who sail on them. the goals and functional requirements. general account. Newly constructed oil tankers Tier V: Industry practices and standards – industry standards, codes of practice and safety The HNS Convention excludes and bulk carriers will have to and quality systems for shipbuilding, ship operation, maintenance, training, pollution damage, but does cover death, comply with structural standards manning, which may be incorporated into, or referenced in, the rules and personal injury and fire, among others. agreed by the committee. regulations for the design and construction of a ship. MSC 87 adopted guidelines that 38 July 2010 | Ports & Harbors
  • MARITIME UPDATE Safer slinging in your pocket Insurance provider TT Club, and to determine the SWL for together with International Cargo each option, the pamphlet Handling Co-ordination provides a ‘mode factor’ for the Association International (ICHCA), straight ‘pull-safe’ working load. has issued two pocket-cards The ICHCA guidance giving advice on safe slinging of emphasises the importance of cargo on and off vessels. the sling not being allowed to Described as “a quick and easy damage the load nor the load the reference” for all those that use sling, and of selecting the correct slings, the guidelines focus on type of sling for the job. Users are cargoes that require individual shown how to look for sling lifting, as opposed to containers defects and given the criteria for and ro-ro cargo. “This is a feature determining whether a damaged of cargo handling that is often sling should be discarded. ignored from the safety point of “TT Club is committed to the view, yet there are some simple researching of best-practice in all guidelines that can ensure safe forms of cargo handling,” Ian Lush, cargo handling using slings,” said marketing director at the club, Photo: Danny Cornelissen Peregrine Storrs-Fox, TT Club’s risk told P&H. It “has been co- management director. operating with the Safety Panel of The pocket-cards have been ICHCA in what it believes to be a developed from a briefing most effective way of achieving pamphlet on safe slinging that these safety and risk management was recently published by goals,” he concluded ICHCA’s International Safety Panel. The guide is available in print It explains that all slings, form and as a PDF from the TT whichever material they are Club website, www.ttclub.com. made from, are marked with a safe working load (SWL). Slings Pull safe… know your can be used in a number of ways safe sling working load Click for EU customs procedures EC digs in on sulphur limits The first phase of a web portal to practical information and even websites of member states. help businesses understand and includes animated scenarios that Known as the European follow the customs procedures explain each step of the import, Customs Information Portal for importing goods into and export and transit procedures. (ECIP), it focuses on the The European Commission will not exporting goods from the There is an outline of the legal application of the Safety and support efforts to persuade the IMO to European Union was launched framework for such procedures, Security Amendment to the drop plans for stringent new sulphur in April by the European and the portal includes Customs Code, which entered oxide emission rules in 2015. Commission (EC). information on policy, databases into force on 1 July 2009. An alliance of more than 50 European It is intended to serve as a and assistance services drawn To access the portal go to: shipping and industrial bodies recently single point of access for from the EC and the customs http://ec.europa.eu/ecip. sent an open letter to the EC alleging that the IMO rules would put northern Europe at a competitive disadvantage Panama Canal tolls held with other EU regions. The rules, created by the IMO in 2008, The Panama Canal Authority (ACP) has announced According to the authority, the proposed limit the sulphur content in marine fuels to that it will not change its tolls this year, although alteration next year “modifies the pricing structure 0.1% in northern Europe’s emission control adjustments are scheduled for January 2011. for all canal segments: container, dry bulk, liquid areas, covering the Baltic Sea, the North “The ACP thoroughly analysed various bulk, vehicle carriers, reefers, passenger, general Sea and the English Channel. alternatives and held conversations with the cargo and others”. Transport commissioner Siim Kallas maritime industry for several months to ensure that The ACP proposes to change the way tolls are said that the EC “has a legal obligation to the suggested price structure safeguards the calculated for the container sector, with a slight implement the decisions taken by the IMO” competitiveness of the waterway and facilitates price adjustment to the capacity charge and an by transposing those limits into EU law. He the canal’s goal of providing a valuable service to additional charge that would apply to the number said IMO sulphur limits had been approved world commerce,” said ACP administrator and chief of loaded containers aboard the vessel at the time by all EU members. executive officer Alberto Alemán Zubieta. of transit. Ports & Harbors | July 2010 39
  • IAPH INFO IAPH members from across the globe came together in Savannah, Georgia Normal ain’t coming back Four port forum sessions and a line-up of insightful keynote speakers we’re going to have to export more.” The government has sparked the interest of over 100 delegates at IAPH’s Mid-term Board increased its debt to stimulate this, he added. Meeting quite as much as the hot Savannah sun Offering a logistics perspective, Jack Gross, VP and general President Gichiri Ndua was first to informed delegates that Savannah He too acknowledged manager of international supply take the floor at the meeting is a “designated urban forest” – Savannah’s healthy container traffic chain at Schneider Logistics, hosted by Georgia Ports Authority. GPA’s chairman of the board figures, adding that Georgia is now candidly told delegates: “No-one He questioned the point at which Stephen Green drew attention to a major force in international here, or anyone else I could talk a port should accept that it has the Port of Savannah’s “unique commerce. He said that there are to, could predict what enough capacity and admit that position of strength in our 60M people in the southeast of the [international trade is] going to “this good is good enough”. Asking industry”. He told delegates that, USA and it’s the fastest-growing be like in three years.” delegates, “Where is the end?” he as the economy turns itself region in the country. Savannah Shippers today are interested in challenged them: “Would you around, the port will be ready to has a “God-given location” for smaller but more accurate increase throughput indefinitely?” serve its clients. “The shipping delivering to this area: “We have shipments, he suggested, and the He acknowledged that industry must meet the needs of become the corner store,” he closer a shipper is to the ultimate throughput is down at the tomorrow’s demands,” he said. added. “The world is upside down, user the better. moment, because of various Keynote speaker Craig Lesser, a but Savannah and Georgia are right Which ports do shippers use outside forces. managing partner at Pendleton side up,” he concluded. and why? That was the question Public-sector money for Consulting Group, began his The first of the port forum John Kaiser, VP and general infrastructure and development is presentation with a quotation sessions, chaired by Journal of manager of intermodal at US rail driving growth, he continued, but from the April issue of The Commerce’s senior editor Peter company Union Pacific, sought to he balanced this optimistic Economist magazine: “The world is Leach, focused on transport trends answer. He believes the choice perspective with a reminder that turned upside down.” Rich and economic projections. Moffat comes down to the option that unemployment is still too high. countries, he said, now have to & Nichol’s chief economist, Walter can provide the lowest delivery “[Ports are] expanding their compete with emerging Kemmsies, believes that Asian and cost. Considering US ports, he throughput,” said Ndua, “without countries in business innovation. Latin American countries will maintained that the west coast’s calling in more labour.” Change has become a constant continue to overtake developed infrastructure “is not in place” and After a hearty Southern-style in the way we work and we need countries, unless the USA is able to the east coast requires welcome from City of Savannah to see it and plan for it. “Normal stabilise the situation. As he put it: investment too. mayor Otis Johnson – who ain’t coming back,” he proclaimed. “If we’re not going to import less, US rail providers were well 40 July 2010 | Ports & Harbors
  • IAPH INFO Photos: Russ Bryant Ndua: outside forces are affecting ports IAPH members consider current challenges Keynote speaker, Craig Lesser represented at the meeting, with internal waters and coastal ports. Initiative (WPCI) and greening the she told delegates. As primary Norfolk Southern’s VP of Delegates were given a supply chain in general. Guido van nodes in the supply chain, ports intermodal and automotives, Mike comprehensive overview of the Meel, senior adviser at Port of could use this tool to influence McClellan, commenting that, future of the Suez Canal, including Antwerp, was first to speak, and collaborate with other although trends are improving, we plans to increase the length of updating delegates on one of the operators to reduce their carbon have a long way to go before bypasses to reduce transit times in initiative’s projects: the footprints. PoLA has developed freight returns to “normal” levels. the canal and deepening the Environmental Ship Index (ESI) the calculator and is making it Maritime economist Bill Ralph, western bypasses to enable vessels (see page 36). In keeping with the available to members and non- from R.K. Johns and Associates, with a draught of up to 52ft (16m) premise of the ESI, Van Meel members alike. kick-started the session on future to use the canal. The speaker was commented that, to reduce When looking at ways to reduce trends for US exports and imports. Ahmed Mohamed Mahmoud El emissions in ports, “global carbon emissions, “Getting capital West coast ports may only be Manakhli, director of the canal mechanisms are the way forward”. into the market place and getting running at 80–85% capacity in authority’s Planning & Research Next to speak was IAPH’s the market moving,” is a primary 2020, leaving “port competition and Studies Department. managing director, Fer van der aim of the Carbon War Room, tense”, he predicted. The last to take the rostrum in Laar. He gave an update on according to its director of Delegates were then presented this port forum was Peter another WPCI project – onshore operations, Peter Boyd. The non- with a shipper’s view of the Mollema, director port planning power supply – and explained that governmental organisation has situation. Terry Bunch, director of and development, Port of a fully fledged standard for the been set up to engage logistics and customer service at Rotterdam, who looked at the technology would be in place by environmental entrepreneurs, wood products company Rayonier “uniform approach”, which has next year. IAPH has been involved private companies and relayed the frustrations of having been adopted to secure maritime with the creation of this standard, governments to work together to to book shipments far in advance trade at the Dutch port. By 2013 along with the International implement ways to reduce climate because shipping lines’ capacity the port plans to have in Electrotechnical Commission, ISO change. Boyd told delegates: “We was so limited. “We used to book operation at all large container and Institute of Electrical and don’t believe there will be any in 30 days in advance, but now we terminals: drive-through x-ray Electronics Engineers. changes unless people are making need to book 45 days,” he noted. scans, nuclear detection gates, Lisa Wunder, an environmental money,” and the idea is that the Mike White, president of Maersk optical fibre connection to specialist, also from PoLA, spoke two are brought together. North America, agreed that this customs, and a container about the development of the Casey Chroust concluded the has been a challenge since unpacking facility. Carbon Calculator, which is being day’s presentations with a retailer shipping lines rationalised their The final session – chaired by developed under the auspices of perspective. The executive vice- tonnage. He also highlighted the Geraldine Knatz, CEO of Port of WPCI Carbon Footprint project. president of retail operations at challenge of “round trip Los Angeles (PoLA) – was focused Carbon calculators are already the Retail Industry Leaders economics”. Import countries are on IAPH’s World Ports Climate available for railways and shippers, Association cited several examples not necessarily the same as export of the way that powerful retailers countries, he said, explaining that can influence how goods are it is difficult to make “every port part of the transport network”. Technical committees shipped and ultimately help reduce both packaging and Protecting maritime trade was the focus of the third session, for knuckle down emissions in the supply chain. They have succeeded through which the tone was set by A resolution on piracy, new ways of distributing funds among technical committee improved truck design, reduced Commander David Murk, chief of projects and changes to the IAPH website were a few of the topics discussed and agreed vessel idling, greater efficiency, the Cargo and Facilities Division at on at the IAPH Mid-term Board Meeting from 7 to 9 June. particularly through cutting the the US Coast Guard. He set out the All of the committees meetings were well attended by a wide-reaching selection of number of trips required, and by USCG’s layered approach to members from accross the world. avoiding air transportation. security, which combines: The next World Ports Conference will be hosted next year by Port of Busan from This outlook reminded ports International activities, such as 23 to 27 May 2011 and delegates in Savannah got a taste of what is in store. that they are just one part of a USCG’s Container Security Initiative Also, the next Mid-term Board Meeting will be held in May 2012 in Israel, where a much wider logistics network and Offshore surveillance & tracking well-filled programme is already being planned by the host, Israel Ports. that traditional super-powers are Coastal actions such as For more information on the technical committee’s activities go to: making way for emerging boarding vessels and interdiction www.iaphworldports.org economies, environmental Security and other activities in protection and customers. PH & Ports & Harbors | July 2010 41
  • IAPH INFO Dates for your diary IAPH celebrates Forthcoming courses and conferences August with PIANC Both organisations labour for 4–5 ICHCA Australia National Conference & Exhibition 2010 ships.” A tripartite approach − Darwin, Australia towards matters burdening the www.ichcainternational.co.uk industry is needed, Ndua added. September “I suggest that the two secretariats engage the Baltic & 6–17 Port Environment Policy & Technology International Maritime Council − Antwerp, Belgium [Bimco] with a view to establishing www.portofantwerp.be/apec a working relationship with 7–10 SMM 2010 − Hamburg, Germany international shipping associations www.hamburg-messe.de/smm/smm_en/start_main.php – Bimco concerns itself with navigation and ports as well.” 8–12 WODCON XIX − Beijing, China Turning his attention to the www.chida.org much-debated topic of economic 12–14 PIANC 125th Anniversary Celebration in Asia IAPH was well represented at recovery, President Ndua − Nagoya, Japan PIANC’s 125th Anniversary commented that the optimism www. congre.co.jp/pianc125/english/index_eng.html Congress in Liverpool, UK, in May, seen in 2009 was partly the result 14–15 5th Annual Canada Maritime Conference with both President Gichiri Ndua of a necessary injection of − Montreal, Canada (pictured) and SG Susumu Naruse government funding. However, he http://joc.com/events addressing delegates. commented: “One year down the President Ndua’s keynote line, the world economy is not out 14–15 Transport Security Expo and Conference − London, UK speech highlighted the good of the woods yet.” www.transec.com working relationship between the Ndua said that even though the 14–15 The 7th Annual Port & Maritime Security 2010 two organisations and drew public sector has been very active − Sydney, Australia attention to their similarities: in providing resources for www.portmaritimesecurity.com.au “PIANC minds the routeing and infrastructure development, the channels while IAPH aptly private sector has, on the whole, 16–17 5th Southern Asia Ports Logistics and Shipping 2010 addresses the home, safe haven been more cautious. “It is still − Mumbai, India for these craft.“ He acknowledged waiting for sustained stronger www.transportevents.com the collaborative efforts of the signals, which unfortunately it 16–17 6th World FIBC Congress 2010 IAPH and PIANC working groups. needs to be a party in generating.” − Amsterdam, Netherlands He said to delegates: “We are He concluded by addressing www.millenniumconferences.com convinced that PIANC works for issues on the port-city interface IAPH and the same is true for IAPH. and sustainable development. Membership notes Telephone: Fax: Email: +44-20-8279-9403 +44-20-8279-9405 rachael.white@pema.org/ Four new members are welcomed to IAPH helen.coffey@pema.org Website: www.pema.org Representative: Ottonel Popesco, president Regular members Telephone: +38-0482-300-713 Nature of business activities: International trade Fax: +38-0482-300-713 association for providers of port Baku International Sea Trade Port Email: info@tis.ua equipment and technology Address: Uzeir Hajibeyov str 72, Website: www.tis.ua AZ-1010 Baku, Azerbaijan Representative: Andrey Stavnister, Informall BG Telephone: +994-12 4930268 general director Address: 34 Preobrajenskaya Street, Passage Fax: +994-12 4933672 Building, Office 426, Odessa 65000, Ukraine Email: office@bakuseaport.az Associate members Telephone: +380-48-728-5522 Web: www.bakuseaport.az Fax: +380-48-728-5522 Representative: Elchin Mirzayev, general director Port Equipment Manufacturers Association Email: hq@informall.biz Address: Secretariat Office, Website: www.informall.biz TransInvestService (TIS) c/o Next Level Information Ltd, Representative: Vassiliy Vesselovski, chairman Address: PO Box 13, 65026 Odessa, Ukraine 3 Pretoria Road, London E4 7HA, UK Nature of business activities: Consulting 42 July 2010 | Ports & Harbors
  • EMBRACING OUR FUTURE E X PA N D I N G O U R S C O P E L O V E A T F I R S T S I G H T W H E N Y O U V I S I T BUSAN Monday 23 May - Friday 27 May, 2011 The 27th Wo r l d P o r t s C o n f e re n c e BEXCO, B U S A N , KOREA Hosted by Busan Port Authority w w w. I A P H 2 0 1 1 . k r
  • LAST WORD Freeing the flow of information Port of Marseille Authority strategy and finance deputy director and chair of IAPH’s Trade Facilitation and Port Community System Committee Frédéric Dagnet advocates easy movement of data Ports have helped transport both carrying out a benchmark study on PCS people and goods since their inception. worldwide based on a comprehensive Today, providing this basic function is questionnaire administered by the increasingly reliant on a third aspect: committee across eight ports in Europe, sharing information. Physical transportation one in the Middle East and seven in Asia. now depends on data transfers in order This questionnaire will be sent to each to comply with current regulations, port prior to an interview process. track goods, transfer ownership and Following this, each port’s PCS provide value-added services. These will be assessed by a committee ‘intangible’ transfers are becoming a member over a two-day period: Physical key factor in a port’s competitiveness. It is for this reason that the Port of – Day one will include meetings with the PCS operator, port authority Marseille Authority has signed an agreement executives and a visit to the port itself, transportation now with customs to simplify its river and rail transportation procedures and make them including a container terminal – Day two will be a chance for the more competitive. These activities are being committee member to have meetings with depends on data supported by the development of the port’s AP+ port information system – a paperless customs, the trade community, including shipping agents and freight forwarders, transfers approach that saves our stakeholders time. In mid-2009 the Marseille-Fos port community eliminated customs documents and any other key stakeholders. These activities will culminate in a final report including an executive overview, for transit between the Fos container terminal synthesis identifying key factors for success and the logistics zone, Distriport, to reduce and difficulties, and a case study on each port. the cost of passing through the port. The research findings will be presented Remaining a competitive option to in 2011 during the board meeting at the customers is a challenge for ports all over IAPH World Ports Conference in Busan. the world. It is therefore being addressed We have no doubt that they will offer specifically by the IAPH’s Trade Facilitation many valuable lessons for us to share as and Port Community System Committee we continue to improve the conditions for (PSC). Its priority for 2010 involves peaceful trade between people. PH & 44 July 2010 | Ports & Harbors
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