International BULK TERMINALS - Association of Bulk Terminal Operators

 
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International BULK TERMINALS - Association of Bulk Terminal Operators
BULK TERMINALS
SPRING/SUMMER 2017              international
  THE OFFICIAL MAGAZINE OF ASSOCIATION OF BULK TERMINAL OPERATORS

Competitive advantage
Why trading commodities
in an anti-trade world
is good for shipping

King Coal
How goods such as coal
are helping dry sectors
to bounce back this year

Safe    shipping
Are tanker conversions
aimed at serving the bulk
trade fit for purpose?

                                                  www.bulkterminals.org
International BULK TERMINALS - Association of Bulk Terminal Operators
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International BULK TERMINALS - Association of Bulk Terminal Operators
EDITOR’s letter                    1

WE LCOMEBY SANDRA SPEARES                                  
Markets have continued to be turbulent during the past year and while commodities markets
rebounded during the latter part of 2016, the general feeling seems to be the improvement in
market conditions during 2017 is likely to be slower than some might have predicted

Welcome to this first edition of Bulk        with a rise in the number of incidents,        While this year has seen the delivery
Terminals International. In this, and        some of which have ended in tragedy.        of newbuildings in the bulk segment
forthcoming editions, we will be             Calcium hypochlorite, and the dangers       for very large ore carriers, the concern is
covering the issues that matter to bulk      of carrying it, has also made a return to   whether the VLOC fleet, which includes a
terminal operators. For example, the past    the safety agenda, while March saw the      substantial number of vessels converted
couple of years have seen considerable       foundering of Polaris Shipping’s Stellar    from VLCCs to VLOCs, is fit for purpose.
political change and it remains to be        Daisy with the loss of 22 members of           The potential that ports offer for
seen how this will impact on trading in      the 24-man crew, while the ship was         investment by finance houses has
bulk commodities. What happens with          transporting a cargo of iron ore for        been one of the features of the past
the Chinese market is key to trading in      commodities giant Vale.                     year. While investment in shipping
iron ore and coal, with some suggesting                                                  may have been a rocky road for private
that the drive by China to improve the                            While                  investors, ports do seem to be attracting
situation regarding air pollution might                                                  plenty of attention.
mean an opportunity for cleaner-                                  there are                 With port developments like those
burning energy supplies.                                                                 in Australia the target of high profile
    At the same time, the move to                                 a few                  deals involving investment houses,
reduce emissions on a global basis –                                                     ports present greater opportunities
a global sulphur cap for the shipping
                                               years left to run, the                    and have a profile that fits investors
industry is only three years away –            port of Amsterdam’s                       planning strategies more closely than
coal trades are liable to be adversely                                                   pure shipping does. Rental income from
affected with the move towards                 target of a coal-free                     ports seems to be more attractive a
cleaner fuels. While there are a few years                                               proposition in the medium term than
left to run, the port of Amsterdam’s           port by 2030 is a                         relying on the turbulent movement of
target of a coal-free port by 2030 is a                                                  freight rates.
strategy that many others are likely to        strategy that many                           Port investment has also been
follow and the port is already reining                                                   continuing apace in technological
back transhipments.                            others are likely to                      terms, with advances in loading and
    As the appetite for shifting bulk                                                    unloading equipment, storage and so
cargoes such as iron ore shows no
                                               follow and the port                       on. Ensuring not only a swift service to
sign of abating, owners and operators          is already reining                        port clients, as well as an efficient and
need to keep a close eye on safety                                                       cost effective one, is resulting in many
issues affecting the carriage of bulk          back transhipments                        new technological developments.
cargoes. Cargo liquefaction has been                                                        We hope you enjoy this first edition of
one major concern on the agenda,               through the port                          Bulk Terminals International.

                                                                   BULK TERMINALS        international       |SPRING/SUMMER 2017
International BULK TERMINALS - Association of Bulk Terminal Operators
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International BULK TERMINALS - Association of Bulk Terminal Operators
3

CONTENTS
                  1     editor’s letter                        35 covered storage
                  Welcome to this first edition of Bulk        The dangers of liquefaction from
                  Terminals International                      insufficient covered storage facilities

                  6     chief executive                        37 bagging equipment
                  Ian Adams, Chief Executive, ABTO, looks         and FIBCS
                  at a new dawn for the industry               The drive towards more eco-friendly and
                                                               super-efficient means of bagging
                  8     industry news
                  All the latest industry news from            39 Bulker safety
»» p18            across the globe                             Why recent events have put bulk carrier
                                                               safety back on the agenda
                  16 Viewpoint
                  Trading commodities in an anti-trade         45 canada
                  world can be good for shipping, says         Commodities investment means
                  Basil Karatzas of Karatzas Marine Advisors   Canada’s ports are generally booming

                  18 coal trade                                48 australia
                  Is there any light on the horizon as the     How private investment indicates a
                  industry battles through the recession?      recognised potential in Australia’s ports

                  23 Grabs and Cranes                          52 netherlands
»» p23   »» p37
                  Crane developments demand flexibility,       Amsterdam port is continuing
                  safety and environmental friendliness.       its’ drive towards a coal-free zone

                  28 Mechanical Loaders                        56 middle east
                     and Unloaders
                                                               Players in the region’s ports sector
                  Using conveyor systems for handling          continue to build investment
                  complex goods
                                                               60 germany
                  31 Cement trade
                                                               Innovative technology, including new
                  The environmental impact of moving           loading systems, comes to the fore
                  bulk cargoes
                                                               64 Events Calendar
                  33 biomass handling
                                                               Upcoming conferences and
                  Why biomass products play a big part in      not-to-be-missed events for all
                  industry operations                          those in the industry

»» p39

                                        BULK TERMINALS         international       |SPRING/SUMMER 2017
International BULK TERMINALS - Association of Bulk Terminal Operators
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International BULK TERMINALS - Association of Bulk Terminal Operators
BULK TERMINALS
                                                             international

                                                                          Published by

BULK TERMINALS
S P R ING/ SUMMER 2017          international
                                                                          Editor: Sandra Speares
  THE OFFICIAL MAGAZINE OF ASSOCIATION OF BULK TERMINAL OPERATORS         speares1@aol.com
                                                                          Designer: Justin Ives
                                                                          justindesign@live.co.uk
Trade craft
Why trading commodities
in an anti-trade world
                                                                          Sub-editor: Samantha Robinson
is good for shipping                                                      Sam.robinson.journalist@gmail.com
                                                                          Publisher: Bill Robinson
King Coal                                                                 publisher@bulkterminals.org
How goods such as coal
are helping dry sectors
to bounce back this year

Safe   shipping
Are tanker conversions
                                                                          ABTO
aimed at serving the bulk
trade fit for purpose?
                                                                          35 Beacon Drive
                                                                          Newton Abbot
                                                                          Devon
                                                                          TQ12 1GG

                                                                          Chief Executive: Ian Adams
                                                                          ce@bulkterminals.org
                                                                          Events: Simon Gutteridge
                                                                          events@bulkterminals.org
                                                                          PR: Patrik Wheater
                                                                          pr@seabournecomms.com
                                                                          The views expressed in Bulk Terminals International are not
                                                                          necessarily those of ABTO or the publisher unless expressly stated
                                                  www.bulkterminals.org   to be such. ABTO disclaims any responsibility for errors or omissions
                                                                          or their consequences or for advertisements contained in this
                                                                          magazine and has no legal responsibility to deal with them.

           w w w. b u l k t e r m i n a l s .o r g
International BULK TERMINALS - Association of Bulk Terminal Operators
6   welcome

A NEW DAWN
     IAN ADAMS, CHIEF EXECUTIVE, ABTO                                                                   

                                                       It gives me a great deal of pleasure to write this welcoming
                                                       message to our readers. The publication of Bulk Terminals
                                                       International represents the start of a new dawn for the industry.
                                                           Bulk Terminals International is the first publication of its kind
                                                       that is aimed at bulk terminal operators and is the official
                                                       publication of the Association of Bulk Terminal Operators (ABTO).
                                                           ABTO was formed last year to provide a voice for bulk terminal
                                                       operators at a national and international level, providing a forum
                                                       for its members to discuss the issues impacting seaborne trade
                                                       and the global transportation of bulk commodities.
                                                           ABTO encourages the free and frank exchange of opinion to
                                                       enable the bulk sector to present a united front in all discussions
                                                       with governments, shippers, shipowners and operators to
                                                       promote and protect member interests. Bulk Terminals
                                                       International provides another platform for the association to
                                                       communicate with the membership and other stakeholders.

                                                       Representation
                                                       Continuing the theme of the purpose of ABTO, one very
                                                       important role is that of representation. We have access to
                                                       meetings at the International Maritime Organization (IMO) via
                                                       member state delegations and other NGO delegations. This
                                                       enables us to keep abreast of any developments when they arise
                                                       and to discuss them with the delegates at the meetings. We
                                                       currently attend the following meetings:

                                                       Maritime Safety Committee (MSC)
                                                       The MSC is the most senior and highest technical committee of
                                                       the IMO. It is responsible for regulation on all aspects of safety.
                                                       The function of the Maritime Safety Committee is to “consider
                                                       any matter within the scope of the Organization concerned with
                                                       aids to navigation, construction and equipment of vessels,
                                                       manning from a safety standpoint, rules for the prevention of
                                                       collisions, handling of dangerous cargoes, maritime safety
                                                       procedures and requirements, hydrographic information,
                                                       log-books and navigational records, marine casualty
                                                       investigations, salvage and rescue and any other matters directly
                                                       affecting maritime safety”.
                                                          The MSC is responsible for the Safety of Life at Sea (SOLAS)
                                                       Convention. For ABTO, the International Maritime Solid Bulk
                                                       Cargoes (IMSBC) Code, which form part of the SOLAS
                                                       Convention, is of interest as amendments to the code can
                                                       impose requirements on terminal operations.

BULK TERMINALS   international   |SPRING/SUMMER 2017
International BULK TERMINALS - Association of Bulk Terminal Operators
welcome               7

Marine Environment                             CCC4 will meet 11 – 15 September           not-for-profit organisation dedicated to
Protection Committee (MEPC)                 2017. There are currently no papers           improving the safety, security,
The MEPC is required to consider any        submitted for this meeting except for         sustainability, productivity and efficiency
matter within the scope of the              the agenda.                                   of cargo handling and goods movement
organisation concerned with prevention         Any papers on topics that may have         by all modes and through all phases of
and control of pollution from ships.        an impact on member’s businesses are          national and international supply chains.
MEPC is responsible for considering and     available on the member’s section of             Port Finance International. The
approving amendments to the                 the website.                                  leading online journal for the latest
International Convention for the                                                          developments in port investment and
Prevention of Pollution from Ships, 1973,   Bulk Terminals 2017                           operations. Featuring editorial content
as modified by the Protocol of 1978,        Achieving Efficiency and                      targeted to industry leaders and experts
which is often referred to as MARPOL        Compliance                                    the journal includes daily news, features
73/78 or simply MARPOL.                     This is the inaugural conference of ABTO.     and insight related to port financing
   MARPOL consists of six annexes,          We are very much looking forward to           around the globe.
of which ABTO is monitoring the             meeting as many of our members and               IMarEST. The Institute of Marine
developments with regards to Annex V        potential members in London on                Engineering, Science and Technology is
which regulated garbage generated           31 October and 1 November 2017.               the first Institute to bring together
on board ships.                             The programme has some of the best            marine engineers, scientists and
   Since the revision of Annex V, which     speakers available and promises to be         technologists into one international
entered into force from 1 January 2013,     highly educational in the various topics      multi-disciplinary professional body.
cargo residues are now classified as        that will be covered.                            The Nautical Institute. An
garbage. There is still work to be done        The first day topics include Markets       international representative body for
regarding this issue and will be            and Strategic Overview, where we              maritime professionals involved in the
featured in later issues of Bulk            hope to gain an insight into the future.      control of sea-going ships. It provides a
Terminals International.                    We have an eagerly anticipated                wide range of services to enhance the
                                            Biomass session with highly regarded          professional standing and knowledge of
Sub-committees                              speakers explaining how to ensure             members who are drawn from all sectors
Both the MSC and the MEPC are               terminals are optimised for the handling      of the maritime world.
assisted in their work by seven             of biomass. The first day will end with          MHEA. The Materials Handling
subcommittees. ABTO monitors the            sessions on Security and also a short         Engineers’ Association supports the
work of one of these sub-committees,        technology showcase.                          technical and commercial interests of UK
Carriage of Cargoes and Containers             The opening session on the second day      and overseas companies supplying and
(CCC). CCC receives instructions from       looks at various aspects of Safety and        using bulk handling equipment.
MSC regarding the IMSBC Code and            Environmental issues. These cover the            The University of Greenwich. The
MEPC with work related to MARPOL.           latest developments at IMO, Cargo             Wolfson Centre for Bulk Solids Handling
It is at the sub-committee stage            Sampling, Liquefaction of Cargoes,            Technology is internationally recognised
where the resulting regulations can         Managing Emissions during Cargo               for its expertise in fields associated with
be influenced.                              Operations, Risk Factors and Modernising      bulk particulate handling and in the
                                            Terminals. The afternoon session looks at     science and practical application of
Forthcoming Meetings                        Operational Efficiencies with presentations   technologies to deliver improved
MSC 98 is due to meet 7–16 June 2017.       from both the Ship and the Terminals          process efficiencies.
On this occasion, none of the 111           perspective including lessons that can be        SHAPA. The Solids Handling and
papers currently submitted contain          learnt from the coal supply chain.            Processing Association provides a
anything that will have an impact on           Full details of the programme can          sound commercial and technical
ABTO members.                               be found on the website:                      platform for members, helping them
   MEPC 71 will meet 3 – 7 July 2017.       www.bulkterminals.org                         to succeed in today’s challenging
There is a paper submitted here with           We are delighted to welcome many           economic environment.
proposed 2017 guidelines for the            supporting organisations for Bulk                I hope that you enjoy this first edition
implementation of MARPOL Annex V. It        Terminals 2017:                               of Bulk Terminals International and I look
does not progress the issue of Harmful         ICHCA International. The                   forward to meeting you at the end of
to the Marine Environment (HME)             International Cargo Handling                  October at Bulk Terminals 2017, for what
cargoes, which is something that will       Coordination Association (ICHCA),             promises to be a fantastic event and a
have to be addressed in due time.           founded in 1952, is an independent,           superb opportunity for networking.

                                                                  BULK TERMINALS          international       |SPRING/SUMMER 2017
International BULK TERMINALS - Association of Bulk Terminal Operators
8        NEWS

WOR LD NEWS
R OUND-UP
                                  
Developments in China will continue to influence the mining industry as far as
demand is concerned. Plus life after Brexit, working towards a fully digital industry,
drone inspections and the latest from the Baltic Exchange

                                              Continued slow global recovery was             how much of the reform programme,
                                              the watchword at the recent Anglo-             including its ambitious infrastructure
SIR JOHN PARKER, CHAIRMAN
OF ANGLO AMERICAN                             American AGM. Sir John Parker,                 plans, of the new and protectionist-
                                              Chairman of Anglo American, told               leaning US administration can actually
                                              shareholders that 2016 was a year              be achieved, may be a drag anchor on
                                              of continuing slow global economic             the global economy for some time to
                                              recovery and even the remarkable               come,” he concluded.
                                              acceleration in prices in the second
                                              half for bulk commodities such as              life after brexit
                                              metallurgical coal and, to a lesser            Trade facilitation, port zones and
                                              extent, iron ore and thermal coal,             transport connectivity are to be central
                                              “was still not quite enough for Anglo          pillars of the UK Government’s post
                                              American to be able to record a higher         Brexit trade and transport strategies
                                              average price for its own basket of            according to British Ports Association
                                              products compared to 2015”.                    Chairman Rodney Lunn.
                                                 Developments in China will continue             He suggested that ports could play
                                              to influence the mining industy as far         a vital role in driving regional and
                                              as demand is concerned, he said. The           national economies, although the
                                              country’s growth target for 2017 is set at     government must provide the right
                                              6.5% as the country seeks to balance its       policy and regulatory framework
                                              economy through a mixture of stimulus          and explore investment options
                                              and managed slowdown.                          for better connecting ports with
                                                  “That said, China’s admirable efforts to   national networks.
                                              improve air quality may boost demand               Mr Lunn, who is also the Chief
                                              for some of the higher-quality and             Executive of Shoreham Port, was
                                              cleaner-burning iron ore and coking coal       speaking at the Association’s annual
                                              that we are well positioned to supply for      lunch. “Ports are highly entrepreneurial.
                                              steel making.                                  They continue to invest in infrastructure,
                                                 “Widespread expectations of                 equipment and their people all at no
                                              continuing slow growth in many                 cost to the government.
                                              regions of the world outside of Asia,              “It is vital that government agrees a
                                              accompanied by uncertainty over                post Brexit customs strategy that does

BULK TERMINALS              international   |SPRING/SUMMER 2017
NEWS           9

not create lorry parks on roads leading to    company’s general operations email             emails, siloed Excel files and instant
Ro-Ro ports such as Dover.                    address and that it would be dealt with        messages between players required
    “Post Brexit, the BPA will be pushing     by an on-duty colleague.                       for each booking. Built for the modern
for the EU Port Services Regulation              The message detailed a request by           workplace, companies use Shipamax to
to be repealed. It is unwanted and            the charterer to change the discharge          improve team collaboration, increase
unnecessary and also let’s look properly      port rotation to avoid severe congestion       responsiveness to clients and turn data
at the customs free trade proposals           at what was originally scheduled to be         into their competitive advantage.”
for ports”.                                   the first port of call.                            The company says it will work with
    He added: “If UK ports are going             This revised rotation required a            clients “to leverage data from existing
to compete with their European                reduction in the vessel’s draft to enable it   systems — interfacing with your
counterparts, the Government must             to discharge at what was now intended          voyage management, email clients
push forward with our ‘port zones’            to be the first port of call.                  or other systems”.
concept to fast track planning                   Because of the failure to pass on the
decisions and limit the impacts of            message, however, the wrong quantity           Port Qasim operations underway
environmental designations.                   of cargo was loaded and there was              Pakistan’s first state-of-the-art coal,
    “Ports have strong green credentials,     no option but to remain with the               clinker and cement bulk cargo terminal
but Marine Conservation Zones and             original rotation.                             at Port Qasim is now fully operational
Special Protection Areas in ports will           A significant amount of demurrage           and has commenced handling port
only hamper port development,” he told        was subsequently incurred, which was           calls by cargo vessels. Awan Trading
those present. “With the right conditions     passed on to the broker and ultimately         took a first delivery of coal at Pakistan
ports can grow the economy and push           reimbursed by ITIC.                            International Bulk Terminal Limited
regions forward.”                                ITIC says a large number of claims          (PIBTL) Terminal at Port Qasim recently.
    Finally, Mr Lunn welcomed the             caused by messages not being                       PIBTL is a public listed company
Department for Transport’s recently           forwarded involve communications               quoted on the Pakistan Stock Exchange
announced Port Connectivity Study, but        between different offices of the same          and the company has invested around
called on the government to invest in         broking company.                               US$285m in the establishment of the
transport schemes to help link up the            It urges brokers to ensure that they        county’s first and only common use coal,
logistics network:                            have systems in place to prevent such          cement and clinker handling terminal at
    “We welcome the new Port                  errors occurring in their business.            the port.
Connectivity Study, but it is vital that                                                         The company has a thirty year build,
following this stocktaking exercise           shipamax pushes for digital                    operate and transfer arrangement with
the government invests in good road           Pushing shipping into the digital era          Port Qasim Authority and has built its
and rail connections to all ports to          has always been a tough process and            own jetty and is equipped with two coal
ensure that the UK has efficient links        most in the industry will remember             ship unloading cranes and one cement/
for goods and passengers to help the          the markets’ reluctance to take up             clinker loading crane and the facility is
economy compete.”                             paper trading. Now a London-based              capable of handling 12 million tons of
                                              company Shipamax is pushing shipping           cargo per year with storage yard capacity
ITIC warns of missed instructions             to go digital.                                 spread over 62 acres.
International Transport Intermediaries           The company has raised $2.5m in                 The aim is to attract port calls because
Club (ITIC) says communication failings       seed funding, which it is planning to          of improved cargo handling using the
within shipbrokers’ organisations can         spend to continue building its software        facilities mechanised services. The aim is
result in important instructions from         platform for the shipping industry.            also to try and ease congestion at other
principals being overlooked, leading to       Backing for the project is coming              existing port facilities and also provide
potentially costly claims.                    from Cherubic Ventures, AME Cloud              a service that is not only more efficient,
   In its Claims Review, ITIC cites an        and FF Angel.                                  but environmentally friendly.
incident in which an off-duty member             Founded last year by Fabian
of a tanker broker’s operations staff         Blaicher and Jenna Brown, the aim is           Drone development
received an individual phone and email        to encourage ship brokers, owners and          The way ships agents support their
message over the weekend from a               operators to stop using email and other        customers looks set to be transformed
colleague in a different office, asking for   forms which take up a lot of time, with        with the news that Wilhelmsen Ships
important instructions regarding the          data presented in an unstructured way.         Service (WSS) will soon be delivering its
amount of cargo to be loaded to be               “Shipamax is on a mission to fix            agency essentials via drone.
passed on to.                                 the ship booking experience,” the                 This much-talked-about technology,
   The operations person took no              company says. “Shipamax’s vision is to         has obvious applications for the
action, having wrongly assumed that           become the platform of the industry,           shipping industry.Marius Johansen, VP
the message had also been sent to the         replacing the thousands of unnecessary         Business Solutions & Marketing, WSS

                                                                     BULK TERMINALS          international       |SPRING/SUMMER 2017
10       NEWS

TANKER OPERATORS COULD                                                                         General cargo leads Marseille Fos
SEE DRONE INSPECTIONS                                                                          First-quarter cargo throughput at
                                                                                               leading French port Marseille Fos was
                                                                                               marked by strong growth in general
                                                                                               cargo which totalled 4.98 million tonnes
                                                                                               for an 11% increase on January-March
                                                                                               last year.
                                                                                                   Conventional trades jumped 22%
                                                                                               to 0.7m tonnes on the back of steel
                                                                                               products. Dry bulks, largely based on ore
                                                                                               imports for the steel industry, surged
                                                                                               11% in March to finish the quarter
                                                                                               1% ahead on 3.41million tonnes —
                                                                                               signalling a recovery from the 2016
                                                                                               slowdown caused by China’s global
                                                                                               dumping of cheap steel, the conversion
                                                                                               of coal-fired plants to biomass fuel
                                                                                               and a poor harvest. With steel-related
                                                                                               traffic down 4% to 2.13m tonnes
                                                                                               and agro-bulks 67% worse on
                                                                                               0.06m tonnes, the result was driven
Ships Agency explains: “Whether it is           coatings. The Plimsoll Award for               by a 25% increase in other bulks to
deliveries of critical documents or vital       Innovation, awarded by Professional            1.22m tonnes.
medical supplies, tank inspections, or          Mariner magazine, recognises the efforts           Liquid bulks, dominated by oil
monitoring cargo and stockpile levels,          of the group, including Barrier Group,         and gas volumes, dropped 10% to
we believe semi-autonomous drone                DroneOps, Safinah and a major oil tanker       11.17m tonnes. The oil and gas total
flights can support and further enhance         operator, to develop an unmanned               of 10.44m tonnes was also down 10%
what our ships agency team can offer            aircraft to carry out remote inspections.      as refinery conversion and maintenance
our customers”.                                    The project, called RECOMMS,                projects saw crude imports fall 25% to
    He adds: “Relied upon by owners,            (Remote Evaluation of Coatings                 5.2m tonnes.
operators, vessels and crew to get spare        and Corrosion on Offshore Marine                   In contrast, refined products soared
parts, medicine, documents, or cash to          Structures and Ships), uses virtual reality    22% to 3.29m tonnes, LNG added 5%
master where it needs to be at moment’s         technology and semi-autonomous                 for 1.24m tonnes and LPG was up 4%
notice, drone delivery is a natural             operation of a drone to remotely inspect       on 0.7m tonnes. Liquid chemicals and
extension of our existing agency                ballast tanks, and other difficult to access   agro-products also contributed 0.7m
service portfolio”.                             areas on vessels and offshore structures       tonnes, a 12% fall reflecting a five-yearly
    Dispensing with the need for launch         such as wind farms.                            maintenance shutdown at the Kem
boats to deliver such essentials to vessels        “We’re proud to be part of a project        One plant. The three-month cargo total
at anchorage, along with cutting delivery       that aims to significantly improve the         across all sectors finished 3% down on
times, Johansen estimates drone flights         accuracy, efficiency and safety of routine     19.56m tonnes.
will also slash costs. With launch vessels      maintenance, and delighted that this               XPO Logistics, one of the world’s
typically costing on average US$1500,           contribution is being recognised,” said        ten largest supply chain providers, is to
he suggests a drone delivery would              Michael Hindmarsh, a spokesman for             start operations at the end of this year
eventually come down to costing                 RECOMMS and business development               from a new 45,000m2 warehouse in the
just US$150.                                    manager at AkzoNobel.                          Feuillane logistics zone at the port. The
    Launching a large-scale working                “Surveys of enclosed spaces and             company will be servicing household
pilot project in one of the world’s             ballast water tanks are essential and          and multimedia products distributor
busiest ports in 2017 — in spite of the         increasingly critical for ship and             Electro Depot from the first warehouse
complexity of global aviation rules and         offshore asset owners. However,                in a 185,000m2 scheme by developer
restrictions placed on unmanned aerial          inspecting these areas thoroughly can          Idec Life.
vehicles — for WSS, drone delivery is           require working at height, entering                Added to the XPO site, a 60,000m2
very much here to stay.                         poorly lit or confined spaces and              Distriport project agreed in January
    Meanwhile, a drone developed to             negotiating slippery surfaces, all of          with developer Wlife means that
improve maritime safety has earned              which are high-risk activities that the        warehouse expansion at the port in
an innovation award for a partnership           maritime industry is keen to address.          Q1 2017 has already outstripped last
comprising AkzoNobel’s Marine Coatings          Drone technology is the ideal solution         year’s 70,000m2 total, with more to be
Business, the supplier of International         for mitigating the risks involved.”            announced in Q2.

BULK TERMINALS           international        |SPRING/SUMMER 2017
NEWS                 11

BALTIC EXCHANGE CHIEF
EXECUTIVE MARK JACKSON

Baltic Exchange makes ambitious plans
Newly appointed Baltic Exchange Chief Executive Mark Jackson

                                                                                     SOME THINK
has set out the Exchange’s position during MPA Singapore
Maritime and Singapore Iron Ore Weeks.
   “The recent acquisition of the Baltic Exchange by the Singapore
                                                                                     LONG-DISTANCE
                                                                                     TRANSPORT IS
Exchange has reinvigorated this key international maritime
institution, allowing us to grow our leadership profile and play a
bigger role than ever in setting standards, building consensus and
leading change in the shipping markets,” he told delegates.                          INFRASTRUCTURE-
   On the regulatory side, the Baltic Code currently contains
                                                                                     INTENSIVE.
                                                                                     WE THINK
guidance for shipbrokers, owners and charterers, highlighting
best and unacceptable practices and underpins its dispute
resolution service. The Baltic Exchange intends to enhance the
Code to provide greater clarity on the role of the shipbroker and                    DIFFERENT.
raise global freight trading standards.
   The Baltic Exchange has ambitious plans for assisting in the                       Transporting materials from remote locations has traditionally
development of a digital maritime market infrastructure to                            required significant infrastructure investments in road or rail
integrate the risk management of cargo and freight. This will                         links, vehicles, personnel and fuel. BEUMER offers an
                                                                                      economical, efficient and environmental alternative –
involve working with the industry to develop tools that deliver                       long-distance overland conveying. This gives you a dedicated,
real-time cargo and freight contract management, messaging                            around-the-clock transport link at the fraction of the cost
workflows and data standards. As an independent body, the                             of infrastructure development. The reduced noise and air
Baltic Exchange is able to provide the framework the bulk freight                     pollution minimises environmental impact and improves
industry needs to develop new tools and standards.                                    personnel safety. Add to that a high degree of design flexibility
                                                                                      and customisation and you can see why overland conveying
   Changes to the Baltic Exchange’s data policy were also                             makes a big difference to operational efficiency and
announced. Compiled using assessments of freight rates and other                      environmental protection.
data supplied by shipbroker panellists, Baltic Exchange data is used                  For more information, visit www.beumergroup.com
to settle freight derivative contracts and is increasingly written into
charterparty agreements. The terms of the Baltic’s Data Policy will be
changed to ensure that companies with physical freight contracts
that reference Baltic Exchange data will be required to use a Baltic
Exchange Panellist to calculate the settlement price or prices.

                                                                                                     international
                                                                          BEU_PipeConveyor_BulkTerminalsIntern_86x270_EN.indd 1                     19.01.17 17:21
                                                                      BULK TERMINALS                                              |SPRING/SUMMER 2017
12

BUILDING
BRIDGES COMPANY NEWS                                  
Gans Cargo Operations is a Rotterdam
headquartered shipping and forward-
ing company, specialised in interna-
tional supply chain logistics. Our pro-
active and innovative thinking allow us
to respond adequately to new develop-
ments. We listen carefully and under-
stand our customers needs, offering
a wide range of tailor made solutions.
We can utilise owned and long term
leased (bulk) storage facilities at stra-      Gans Cargo Operations is the eyes and            customers for loading / discharging their
tegic locations worldwide and trans-           ears on the spot on behalf of her custom-        dry bulk cargoes in any Egyptian sea port.
port your cargo to any destination.            ers. Our strongly motivated and dedicated
                                               team goes the extra mile to help prevent-        In October 2016, we founded Sharaf
Gans Cargo Operations represents almost        ing and/ or solving problems by thinking         Gans Logistics Services, a joint venture
a century of experience in serving a large     in solutions interactively. Our teams are at     between Gans Cargo Operations and the
number of multinational customer such          your service on a 24/7 basis.                    Sharaf Group. Headquartered in Dubai,
as BP, Oxbow Energy Solutions, Statoil,                                                         this joint venture serves as an agent and
P66, Rain Carbon, Vitol, Emerates Global       We strongly believe in building bridges          supply chain logistics provider in more
Aluminium, El Nasr Coke & Chemicals,           between all parties involved, in order to        than 150 ports in the Middle East, Africa
Cemex, Teck Coal, which are all major          ensure that both vessel and cargo are            and the Indian subcontinent.
players in international dry and liquid        handled in a smooth, reliable manner in
bulk markets.                                  line with the expectations of our customers.     Within this joint venture, we are devel-
                                                                                                oping a bulk warehouse distribution hub
                                               In March 2015, we founded Gans Egypt             (initially 5000 M2) in UAE as a strategic
                                               Logistics Services, a joint venture between      stock position to serve the broader region
                                               Gans Cargo Operations and the Naggar             with just-in-time deliveries either by truck
                                               Group. Through this joint venture we are         or by waterway.
                                               rendering our logistics services as your
                                               supply chain logistics agent in all Egyptian     Interested?
                                               seaports and during Suez canal transits.         Please visit us at : www.ganscargo.com
                                                                                                for all services and contact details.
                                               We acquired 50.000m2 long-term leased
                                               open pit storage area, which is connected
                                               via river to the port of Alexandria. This area
                                               is managed by our joint venture and is
                                               very suitable to store your bulk products.
                                               Recently, we have purchased four grabs
                                               of 13cbm each, enabling us to rent out
                                               same against a competitive rate to the
                                               geared, but not grab-fitted vessels of our

BULK TERMINALS         international         |SPRING/SUMMER 2017
13

ENSURING NOTHING
GETS SPILLED
        COMPANY NEWS                                  
BEUMER supplies belt conveyors that transport bulk material to its
destination quickly, efficiently and in an environmentally friendly manner

Whether granular, fragmented                    Protected right to their destination            of different mining companies from the
or cohesive, BEUMER Group belt                                                                  warehouse to the terminal. With its ability
conveyor systems transport all kinds            With their enclosed form, BEUMER pipe           to negotiate curves in three dimensions,
of bulk material in a wide variety of           conveyors also enable material to be            the approximately 3,000m-long con-
industrial sectors. They connect the            transported without additional features.        veyor can be optimally adapted to suit
production sites of raw materials with          Here, conveying downhill in the belt,           its routing. Even more importantly, the
processing plants or ports, such as             which is formed into a pipe with diam-          system prevents the concentrates from
in Callao, Peru. The system prevents            eters between 150 and 650mm, and the            coming into contact with the environ-
the concentrates coming into contact            transportation of different materials on the    ment and conveys them to the ship’s holds
with the environment and conveys                top and bottom strand are equally possi-        without generating dust. The BEUMER
them to the ship’s holds without                ble. For textile belts, a guide value for the   Group was responsible for the engineer-
generating dust.                                curve radius is a minimum of 300 x d, and       ing and supply, including the steel struc-
                                                for steel rope belts a minimum of 600 x d.      ture, supervision of the installation and
The BEUMER Group is a world-leading                                                             putting the pipe conveyor into operation.
systems provider for transporting,              The capacity is up to 6,000 tonnes per
loading, filling and packaging bulk             hour. The material can also be transported      Trucks and trains deliver the mining
material. The BEUMER portfolio includes         at speeds of up to 6.5 m/s. The gradient        commodities from the mines to the ore
curved belt conveyors for the fast and          can be up to 30 degrees. Long distances         storage yards, from where they are then
reliable transportation of large quantities     and very tight curves are possible. And,        transported to the open access station.
of material from the quarry or mine to          because of its ability to negotiate curves,     Here, the concentrates are received by a
the factory or port. These overcome             significantly fewer or even no transfer         43m-long feed belt, which transfers them
long distances, steep gradients and tight       towers are required, depending on the           to the pipe conveyor at a height of six
curves, and can be individually matched         length of the conveyor and the possible         metres. The feed belt is equipped with a
to the particular task and topography           curve radii. This results in substantial cost   metal detector and an electromagnet. In
thanks to their ability to negotiate vertical   savings for the customer, and allows the        this way, there are no metal pieces which
and horizontal bends.                           BEUMER Group to customise the system            can damage the downstream pipe con-
                                                to the individual routing.                      veyor. At the end of the route, the con-
Depending on the requirements, BEUMER                                                           veyor system runs along the seafront to
provides open troughed belt conveyors           From engineering to commissioning               the transfer tower. Here, the belt opens
for higher throughputs and greater                                                              automatically. It transfers the material to
mass flows as well as pipe conveyors            As an example, Transportadora Callao SA,        another belt conveyor, which conveys the
that protect the bulk material from             operator of a special loading terminal at       ore to the ship loading system.
environmental influences and at the same        the port of Callao/Peru, relies on a BEUMER
time protect the environment from the           Group pipe conveyor for the transporta-
conveyed material.                              tion of zinc, copper and lead concentrates

                                                                       BULK TERMINALS           international       |SPRING/SUMMER 2017
14

WE LL-
ENGINE ERED
        COMPANY NEWS                                  
With a foundation of 50 years of                A MAJOR FEED MILL                                  VIEW FROM A COMPETED
                                                EXTENSION BEING INSTALLED                          PORT PROJECT
experience, Guttridge is a flourishing
                                                IN NORTHERN IRELAND
company, globally respected for
delivering well-engineered, reliable
materials-handling solutions that
continue to anticipate dramatically
changing industrial needs.

It offers tried and tested bulk materials
handling equipment in a wide range of
industries and on a global basis.               knowledge we’ve developed from
                                                dealing with a truly diverse spectrum of
We supply everything from single                materials over very many years.
machines to fully integrated handling
solutions and we manufacture in both            However, we’ve also recently invested
stainless steel and mild steel, producing       in a modern powder tester to further
durable equipment for every material            strengthen our understanding in this key
and eliminating the risk of contamination,      area. This detailed material testing allows
where necessary. However, Guttridge isn’t       us to predict material behaviour and
simply an off-the-shelf supplier. What sets     flow properties more reliably thus vastly
us apart is our ability to design and build     improving our ability to provide “right first
truly bespoke solutions for your specific       time” equipment specification.                  A MIXER THAT WAS USED IN
                                                                                                THE RECYCLING INDUSTRY
application.
                                                Our design and manufacturing practice
Our comprehensive range of bulk materi-         similarly focuses on delivery to the cus-
als handling equipment includes:                tomer and we continue to invest in the
•    Bucket elevators                           technology needed to achieve excellence.
•    Screw conveyors and dischargers            We look to become a trusted partner for
•    Chain conveyors and dischargers            each and every bulk materials handling
•    Belt conveyors                             project and these capabilities make
•     Load and discharge hoppers                Guttridge a strong and reliable partner for
•    Vertical blenders and live bins            bulk materials handling projects.
•    Ancilliary equipment such as
     spoutings and fittings, slide valves       Conveying requirements are constantly
     and diverters.                             evolving in terms of scale and the range
                                                of materials handled. We face the chal-
The starting point for any bulk materials       lenges these changes bring with con-
handling project is an understanding of         siderable enthusiasm and with the drive,
the flow properties of the product. Here,       skills and application expertise needed
there is no substitute for experience           to deliver cost-effective systems that
and we rely heavily on the wealth of            really work.

BULK TERMINALS         international          |SPRING/SUMMER 2017
15

JOIN ABTO
TODAY
Membership of ABTO is available as follows:
»» Full Membership open to Bulk Terminal Operators
»» Associate Membership open to Equipment and Service suppliers
»» Affiliate Membership open to Industry Associations and Institutions

Benefits of Membership
»»   Access to key influencers
»»   Access to White Papers, reports and regulatory information
»»   Subscription to ABTO News
»»   Subscription to Bulk Terminals International
»»   Discounted conference and event fees

Membership Fees
An annual (calendar year) membership fee is payable as follows:
»» Full Member (GBP per year): £100 (administrative charge only)
»» Associate Member (GBP per year): £1250
»» Affiliate Member (GBP per year): £500

JOIN ABTO
To join the growing ABTO community and influence the bulk sector agenda, visit:

www.bulkterminals.org/join-abto

                                                                   BULK TERMINALS   international   |SPRING/SUMMER 2017
16       Viewpoint

SILVER LININGS
         BY BASIL KARATZAS                                                                
Trading commodities in a less efficient, anti-trade world can be good news
for shipping, says the Founder and CEO of Karatzas Marine Advisors & Co

Globalisation and trade have been on                around in a world that has become more       be considered hopeful news. Shipping
the frontline of political debate in many           interconnected (due to technology, but       thrives when nations are engaged in
countries — mostly developed countries              also due to trade agreements based on        trading activity and the more they
— in the past few years. On several                 the World Trade Organization successes       trade, the better. Trading volumes can
occasions, the results of elections for             in the past two decades), unspecialised      be influenced by management trends,
national governments have revolved                  labour in developed countries has found      such as outsourcing and just-in-time
about the movement of people, goods                 a much cheaper substitute in developing      (JIT) inventory, by economic activity and
and investments across borders.                     countries, while technology has placed       growth, and by the easiness to trade by
    The outcome of the Brexit                       certain aspects of specialised labour in     lowering trade barriers and tariffs.
referendum in the UK and the election               developed countries in jeopardy.                 Management trends come and go,
of Donald Trump in the US have been                     As the lower social strata have not      but nothing has changed fundamentally
two conspicuous verdicts against                    benefited proportionally in the past         in this front in the past few years. And,
globalisation, while many other                     couple of decades, financial hardship has    while world economic growth has been
national elections in continental                   brought anger and even desperation.          acceptable (3.5% is projected for 2017 by
Europe have come close to delivering                Radical voting patterns have been            the IMF), given the circumstances, world
more anti-trade news.                               considered acceptable in an effort to try    trade growth has stalled in the past
    In a way, it’s sort of easy to rationalise,     to bring back some of the status quo.        couple of years. The state of the shipping
at least on the surface, the wave of anti-              From the perspective of the shipping     industry is a partial result of stalled
globalisation and anti-trade as a hot topic         industry (as part of the supply chain        trading volumes.
in our days: at the risk of being simplistic,       and logistics industries), daily headlines       Given the reasonable-to-expect
as information nowadays is freer to move            against trade and globalisation cannot       scenarios in the near and intermediate

BASIL KARATZAS,
FOUNDER AND CEO OF
KARATZAS MARINE
ADVISORS & CO

BULK TERMINALS            international           |SPRING/SUMMER 2017
Viewpoint                 17

future, one has to expect that trade will       agricultural products which are utilised for       if a trip to River Plate in Argentina is fully
be facing hard times, and shipping, as          food or feedstock in Mexico.                       allocated. In other words, all else being
a result, likely cannot expect a much               In general, Mexico imports one-fourth          equal, this development can double the
brighter future. One of the first actions       of all US grain and agricultural exports,          ton-mile demand for the grains trade by
President Trump has taken in office has         typically ranging from $2 to 3.5bn per             sea, which definitely is great news for dry
been to withdraw from the Trans Pacific         annum, as per accompanying graph. In               bulk shipping and mostly for panamax
Partnership (TPP), while tough talk has         other words, in terms of US agricultural           and supramax dry bulk vessels.
befallen one of the most consequential          and grain exports, Mexico is a very                    And given a voyage from the US
free trade agreements in the world, the         material market for the US farmers.                Gulf to Mexico is as short as it can get
North America Free Trade Agreement                  There have been front page news in             for exporting US grains, for US farmers
(NAFTA). Trading quotas, tariffs, border        international business newspapers that             finding alternative markets, the shipping
adjustment taxes (VAT), countervailing          Mexico presently is actively looking to            distance will only have to increase.
duties (CVD) cannot be good for trade           fulfill, at least partially, their grains import   Imagine if Japan, the second largest
and shipping, any logical argument              requirements from countries beyond                 importer of US grains were to be buying
would hold.                                     the US, preferably from countries in               more grains from the US, then the ton-
     However, an interesting development        South America. Given the tension of                mile increase is almost fivefold.
has taken place in the past few months          the talks north of the Mexican border,                 At the time of writing this article,
which is worth a closer examination, as         any prudent Mexican importer would                 NAFTA and grains discussions are
it may bring some clarity to a confused         like to have a more diversified import             a developing story, and several
crystal ball. Free trade agreements             base. Exacerbated by news of a bumper              permutations of what may happen
make for an efficient and optimised             crop season in the US and also overseas,           are possible. However, most of these
world, and countries are left to compete        Mexico likely will not face major                  plausible scenarios seem promising
based on their competitive advantage,           inconvenience finding new partners in              for the dry bulk market, specifically for
as economists would say, focusing on            the international market.                          panamax and supramax vessels, despite
the production of what they are most                                                               the aggravating circumstances of trade
competitive at. And, an economically            bumper crop seasons                                discussions and disputes between these
efficient production is followed by             Again, exacerbated by bumper crop                  two neighbouring countries.
economically efficient trade and                seasons worldwide and historically very                We believe that talk and actions
shipment to the consumer, for the               high stockpiles of grains, developing              of anti-globalisation and anti-trade,
optimal economic outcome. After all,            new markets or finding new markets                 although they can have a negative impact
trade is based on the premise of optimal        to replace the lost exports to Mexico,             on trading volumes, they may well create
economic outcome.                               it can be very critical for the US                 a very inefficient world where, just like US
     But, what if there were trade barriers?    farmers. So much so, that there have               grains exports to Mexico, raw materials
Could trade barriers make for a less            been, again, front page news in the                and commodities will have to be shipped
efficient supply chain which, in its            international business press that US               around the globe as established, efficient
inefficiency, can actually be good for          farmers have been very concerned                   trading patterns are disturbed, and
shipping? Possibly for trades of raw            potentially losing the Mexican market.             buyers and sellers have to go to greater
material and commodities where there            Once again, this is another example                lengths to trade. Greater lengths and
is little substitute and trade has to go on,    that our (trading) world is usually a              inefficiency are typically good news from
irrespective of trade barriers? Let’s say for   multi-dimensional and not necessarily              a shipowner’s perspective seeking to
food and natural resources mainly, but          just transactional, flat world.                    maximise freight revenue.
less for end-consumer products where                As challenging the news as they may                There may be after all a silver lining for
the buyer can have greater flexibility.         have been for the US farmers and the               shipping, or at least certain segments of
     Besides the border wall talks between      trading representatives of the US and              shipping, in a world that calls for higher
the US and Mexico, NAFTA seems to               Mexico, examining the developments                 barriers to trade – and an environment
be another contentious point as there           from a strictly shipping point of view,            that hopefully will not evolve to outright
is a US$60bn trade balance surplus              one has to be very pleased. US grains are          trading wars which of course would be
in favour of Mexico. There have been            primarily exported from the US Gulf ports          detrimental for trade, and shipping.
reports that the Trump Administration           of New Orleans and Houston, and a trip to          Basil M Karatzas is the Founder and CEO
has come extremely close to, at least           Mexico by sea is shorter than a week.              of Karatzas Marine Advisors & Co, a New
once, unilaterally withdrawing from                 If Mexico follows through with its             York-based shipping finance advisory and
NAFTA. While lots of finished products          announcements and substitute its US                ship brokerage firm working primarily with
flow northbound from Mexico, the                grain imports with imports from South              financial institutions active in the maritime
country traditionally has been the              America, now the voyage by sea is at least         industry. For more information, visit:
biggest importer of US grains and other         twice as long, typically lasting two weeks,        www.karatzas.com or call +1 212 380 3700

                                                                         BULK TERMINALS            international         |SPRING/SUMMER 2017
18   coal trades

      The bulk
         sector
      has been
  hoping that
improvement
 will continue
      this year
  and that the
 green shoots
   of recovery
do not wither

 BULK TERMINALS   international   |SPRING/SUMMER 2017
coal trades                 19

POWER
PLAY
                                  
As the industry continues to battle through the economic
recession, last year saw record daily lows for the cost of
transporting cargoes such as coal by sea

Operators in the bulk cargo saw rates             “What is interesting, though, is that
continue to fall short of the cost of         the market bottomed in February
operating vessels in the depressed            this year and has since been steadily
market. Shipping’s fatal flaw of ordering     improving because of fundamental
more ships and thus causing major             improvement in demand and supply
over-capacity in the market as a              dynamics. Demand, in particular, has
result continue.                              been resilient and has surprised on
    With indications late last year of the    the upside.
dry bulk index on the rise, the bulk sector       “The biggest surprise was the rise
has been hoping that improvement will         in Chinese coal imports, which had
continue this year and that the green         been on a decline for the last two to
shoots of recovery do not wither.             three years. The Chinese government’s
    Analysts have, however, raised            decision to shutter 10% of domestic
concerns that changing political              steam coal production that was
conditions might lead to moves                inefficient was a key driver of the
towards trade protection, which               increase in imports.”
would adversely affect shipping as                As Pioneer pointed out in its annual
an international business and restrict        statement, the Chinese, in particular,
growth and that this would offset the         have been pumping money into
improvement in commodity price                infrastructure projects and that is
levels. For 2017 as a whole, BIMCO            having an effect on the steel
expects only minor demand growth              consumption side.
for seaborne coal, BIMCO senior analyst           On the coal front as well, Chinese
Peter Sand said recently.                     hydro-electric power generation has
    Commenting on the market position         stabilised and there are still new coal-
last year, Pankaj Khanna, Chief Executive     fired power plants coming on stream.
Officer of Pioneer Marine, said: “2016 will   That is not only true in China but also for
be remembered as the worst year for dry       example in India and Vietnam.
bulk owners in almost 40 years. No one            From January to December 2016
in the industry had foreseen the extent       China’s coal import volumes were
or the depth of the downturn we have          “higher than expected, but as Indonesian
experienced since the second quarter of       exporters grabbed the lion’s share of
2014. The prior period of 2011-13, which      the demand growth, the dry bulk sector
was thought of as the recession, now          could not reap the full benefit of this
seems a good market in comparison.            upside,” BIMCO said in its latest analysis.

                      BULK TERMINALS          international       |SPRING/SUMMER 2017
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