Breakbulk Magazine March/April 2015

Unfulfilled Potential n Bridging Mozambique n China’s ‘Pearls’ Unstrung n MPV Rebound Cloudy

MARCH/APRIL 2015

Recognizing Breakbulk’s Next Generation of Leaders

THE NEW

BLOOD

contents

JANUARY-FEBRUARY 20154 BREAKBULK MAGAZINE www.breakbulk.com

cover story

30 MARKET SPOTLIGHTUNFULFILLED

POTENTIALBrazil, Chile and Colombia

Face Barriers to Building Economies

36 CASE STUDYBRIDGING

MOZAMBIQUEGirder System, Teamwork

Smooth Way for Transformers

40 FLEET OUTLOOKSEEKING SILVER

LININGSMPV Rebound Moves

Further on Horizon

44 PORT NEWSCHINA’S ‘PEARLS’

UNSTRUNGShelved Port City Poses

Sri Lanka Dilemma

70 PORT FOCUSINDIA EYES

PORT REFORMBut Labor Opposes

Corporatization Move

76 LOGISTICS PERSPECTIVEINDONESIA’S

INFRASTRUCTURE NEEDS

New Government Looks to Correct a Decade of Under-investment

8 THE NEW BLOOD


Editorial 6 n China Nuclear Pushes Forward 69 n Rio Toasts ‘Port of the Future’ 81 n Digging Out: Managing Risks 82

Introducing the New Breakbulk.com 84 n Breakbulk Index 85 n Silk by Land, Silk by Sea 90

47 ADVERTORIAL SPECIALGULF COAST LOGISTICS

JANUARY-FEBRUARY 20156 BREAKBULK MAGAZINE www.breakbulk.com

editorial

W e tend to speak in organic terms when discussing shipping, transportation, logistics and supply chain

management. Complex, living and breath-ing, there’s a life cycle to the movement of a module or generator.

And while the prognosis of the indus-try’s bottom line may hover between robust health and need for healing, the practitioners of the trade continually prove themselves alive and well.

It can be argued that logistics’ role is experiencing a golden age in the industry, a prominence not previously held. For years, any party with a role in a heavy-lift or project move would bemoan that they were only shown a seat at the table during the last weeks of planning, or that

the complexities and execution of their role was marginalized.

Today, an engineering, procure-ment and construction team will often integrate partners years in advance of a move, employing keenly trained profes-sionals that employ intricate systems and standards, deeply aware of environ-mental and safety issues, and balancing bottom lines with respect to lives.

To achieve this level, it’s amazing that an industry with such a vast geographic stretch can seem near and dear; adhering to ethics, codes of conduct and interna-tional mandates yet can seem close and colloquial; with so many complex facets and intricacies yet seem so simple and straightforward.

The common denominator among all these incongruities are the people who ply the trades, who bring life to such a unique industry. If this is the golden age, those who have built the industry shine with their experience, integrity, intellect and ingenuity.

Despite a highly competitive busi-

ness environment, these linchpins of the industry create a culture of leadership that embraces mentoring and guidance both within operational walls and across corporate cultures. They teach, train and motivate the next generation, glowing examples that are noted in our cover story (The New Blood, page 8).

The most exciting aspect of meeting these rising leaders is finding they dis-play the same mettle as those they will eventually succeed. Reading through their responses to questions about their industry beliefs, you see the pride they feel working in this remarkable industry, their gratitude to those who’ve guided them, and their willingness to nurture their suc-cessors.

But from where will their understudies come? This is a common concern among industry leaders regardless of tenure. One manager observed a gap among 20-year veterans and those with five years under their belts. Recruitment, training and retention are as vital an issue as the cost of oil, because this lifeblood runs as thick and deep for the industry’s continued suc-cess.

Companies look within, creating training and professional development. Universities, in cooperation with industry executives, are forging programs intended to draw young hearts and minds into the business. Breakbulk, with its emphasis on education programs at its events, moti-vates many young adults.

There is promising interest from all quarters in further developing the indus-try’s role in finding and cultivating its newest additions. In the coming months we hope to explore current efforts, help guide discussion for ideas and plans to further develop industry approaches and to acknowledge further efforts to invigo-rate breakbulk’s future.

FINDING FRESH VEINS EDITORIAL DIRECTOR

Gary G. Burrows / +1 904 535 [email protected]

DESIGNERCatherine Dorrough

REPORTERSAlan M. Field Susan OatwayEric Johnson V.L. SrinivasanMike King Liesl Venter BREAKBULK EDITORIAL BOARDJohn AmosAmos Logistics

Ed BastianBBC Chartering

Murray CooperMcDemott International Inc.

Etienne de VelFednav Belgium

Dennis DevlinPanalpina

John HarkBertling Project Logistics

Dennis MottolaBechtel Corp.

William MoyersoenArcelorMittal Antwerp Logistics

Albert PeggAntwerp Port Authority

Dirk VisserDynamar D.V.

Grant WattmanAgility Project Logistics

MANAGING DIRECTORAlli McEntyre / +353.21.470.9595 [email protected]

ACCOUNT MANAGERSKathleen Pinson / [email protected]

Manager for West, East & North Africa

Kingsley Ekweariri / +1.353.89.952.4754

[email protected]

HEADQUARTERSClifton HouseLower Fitzwilliam StreetDublin 2 Ireland

To subscribe, email [email protected], or call from inside the US +1-877-475-4157, or from outside the US +1-847-763-4933 between 8:00 am and 4:30 pm CST.

Gary Burrows

YOUR BAY AREA PORT FOR

BULK AND BREAKBULK

• Closest port to the Golden Gate• Natural deep-water berths• 400,000 square feet of covered storage• Sixty-nine acres of paved open storage• Direct access to freight rail and three

major freeways

THE PORT OF SAN FRANCISCO has full service ship repair, on-dock rail, four gantry cranes and tug and barge services — all available by schedule and for emergency back up.

Photo: Tom Paiva

CONTACT US to learn how we can meet your cargo demands.

JIM MALONEY Maritime Marketing Manager(415) 274-0519 [email protected]/cargo

newThe

Blood

cover story

MARCH-APRIL 20158 BREAKBULK MAGAZINE www.breakbulk.com

www.breakbulk.com BREAKBULK MAGAZINE 9

Breakbulk’s exhibitions in Europe, Ameri-cas and China,

senior industry executives gather at VIP Leadership Summits to discuss key issues and challenges.

It’s a chance for old friends, colleagues and competitors to get together, trade news, respect and good-natured barbs, but more importantly to passionately address hot-button industry topics.

Increasingly, one issue reso-nates: from where will the ensuing generations of industry leaders come? There is growing concern of the ability to recruit, train and retain the best and brightest to ensure this industry remains as dynamic and progressive.

Within that concern is a fear that there may become a gap between these long-time veterans and the younger executives seasoned enough to succeed them. That same concern is shared from the other end of the spectrum. One young executive recognizes “a large gap in this industry between people with 20-plus years of experience and people with five-plus years of experience.”

That puts increasing pressure on the industry to recognize those ris-ing executives to fill that gap.

Breakbulk magazine reached out to nearly 100 senior industry veter-ans seeking input on who are the best and brightest managers and executives rising through the ranks. The goal was to find individuals rep-resentative of the types of executive needed to maintain continuity and growth within this vibrant business.

The result is the 10 individuals

that follow, recognized for their excellence as well as their potential to lead the industry into the next generation. They come from the ranks of carriers; shippers; logistics providers; engineering, procure-ment and construction; shipping agents; and freight forwarders.

These nominees recognize that breabulk and project cargo is a unique and dynamic industry. Despite its vast geographic reach, and depth and complexity, “it is a cohesive industry that sometimes feels very small,” one nominee said.

They all pointed out the col-laborative nature of senior-level colleagues, whose advice, counsel and challenge to succeed helped nurture nominees along. And they in turn mutually feel the obligation to reach out to those just entering the industry, a breakbulk circle of life, if you will.

There is a sense of a strong code of conduct and ethics, and “a solid sense of pride in it ,” one nominee said.

Management styles are diverse, but there’s a common thread of col-laborative, instructional and flexible leadership. Leading by example is a common and appropriate bond they share.

If there is one word universal to the nominees it’s this: passion.

From their perspectives, the nominees also recognize the need to attract, develop and retain fresh young talent to keep the industry vital and productive through promot-ing, training, performance initiatives and talent retention strategies.

“It’s the people who create the solutions that deliver the most value to the market,” one succinctly put.


At ALEX AZPARRENTGLOBAL LOGISTICS DIRECTORFLUOR

“Alex Azparrent has more than 15 years’ experience in the execution of logistics for capital projects both with Bechtel and currently with Fluor. He displays all the characteristics of one who will continue to rise in the logistics field. His experience is in multiple business lines, working domestically and internationally with all modes of transportation. He is well regarded in his current position with Fluor and well known within the organization as one who ‘solves problems.’”

Nominated by David Fox, president of FOX Logistics LLC (retired from Fluor in 2011)

HOW YOU CHOSE THIS INDUSTRYI had an opportunity to work for a major engineering, procurement and construction company on a mining job in South America during my sum-mer break of my junior year at Iowa State University. This internship was a great introduction and a gateway to the world of projects. It was very enjoyable and I knew that’s what I wanted to do.

Cred

it: Shutterstock

cover story


PAOLA BERARDPROJECT CARGO MANAGERTUSCOR LLOYDS SPAIN

“Over the past 10 years Paola Berard has developed experience and high understanding of her clients’ needs and developing integrated logistics solutions for them. She has shown industry expertise, market knowledge of suppliers and global infrastructure, careful and constant attention to detail and customers’ needs during cargo transport, and innovation when planning ‘tailor-made’ logistics solutions.”

Nominated by Camila Mejia, marketing director, global logistics, Tuscor Lloyds

HOW YOU CHOSE THIS INDUSTRYCertainly I can remember being a little girl and spending many hours staring at the big vessels in Veracruz port. So more than an option this has been my pas-sion. Choosing international trade as my major at university was the beginning of “choosing” this industry.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEIt is such an interesting and diverse industry. I think some of the key assets in the industry are the customer service, flexibility offering tailor-made solutions and the relationships you make. Each and every cargo is different and so are the clients, so having the right partners at the right time as well as knowledge makes a huge difference.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEThe most important thing in my opinion is how dynamic the industry is, and how every day can be different from the pre-vious day. It is also an industry that relies heavily on a strong code of conduct and ethics, which has a solid sense of pride in it.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUI’ve been fortunate to have had a num-ber of mentors through my career who helped me grow in different stages, sev-eral individuals to whom I am indebted. I recognize the value and power of men-toring, which I strongly promote in our organization.

In the last several years of my career at Fluor, David Fox was a great influencer. He saw my potential and gave me an opportunity to excel in the organiza-tion. Fluor offers an ecosystem that is ideal for professionals to excel, a combination of professionals, systems, environment, standards and reputation. In addition, David’s values, stature and reputation in the industry were also of great example to me.

PROFESSIONAL BACKGROUNDI have a bachelor’s degree from Iowa State University in Business Administra-tion, with an option in Transportation and Logistics. I am also in the midst of completing an MBA at TRIUM, program composed of three world-class universi-ties: The London School of Economics and Political Science, NYU Stern, and HEC Paris. Last year its MBA program ranked No. 1 worldwide in the Financial Times Executive MBA 2014 rankings.

MANAGEMENT STYLELeading by example and being hands on. Our industry is enjoying momentum where logistics is at the forefront and center of discussions on every major project. Easily accessible resources such as oil, gas and minerals are gone. Most of the new projects are hard to reach and require a much higher level of logistics. We must stick to the fundamentals, take full advantage of technology, and always be connected with project execution. My management style is taking a combina-tion of those elements, always leading looking at the big picture but also being connected with execution.

LONG-TERM PROFESSIONAL GOALSThe last few years have been very dynamic for me; I have been fortunate to have roles that have allowed me to continuously contribute and excel. I am passionate about this industry and enjoy it every day. Going forward I want to continue contributing to our industry, most probably through different roles.

YOUR ROLE AS A DEVELOPING INDUSTRY LEADERThe most important issue in my view is to not forget about the fundamentals of our industry. We are in the project execution business, we hold strong values, we have a strong code of conduct, and we bring value above and beyond traditional logistics.

MOST IMPORTANT INDUSTRY ISSUEThe industry is enjoying notoriety that we have not seen in the past; we are at the center of every major project discus-sion, as an industry we must capitalize on this focus and take full advantage. It’s a great opportunity to continue moving up in the value chain.

ALEX AZPARRENT

PORTOFLONGVIEW.COM T. 360-425-3305 F. 360-425-8650 WASHINGTON’S WORKING PORT

Full Page.indd 1 2/13/2015 2:04:31 PM

cover story


A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUAndres Lozano, our general manager at Tuscor Lloyds in Spain, has opened for me another perspective of this industry. Being from the client’s side, it had never crossed my mind that I would be able to do sales or operations for breakbulk or project cargo. He gave me the tools and support to believe in myself and what I am capable of in this business, and he keeps pushing me and supporting me. Also Nick Rodriguez and Neel Ratti, our project specialists in UK, have guided me.

PROFESSIONAL BACKGROUNDI was born and raised in Mexico and started my career at the automo-tive industry, working for Volkswagen in Mexico and in SKF in the interna-tional purchasing departments and taking care of transportation and logis-tics solutions.

After four years I moved to the energy industry, leading the logistics and inter-national sourcing department for Union Fenosa/Gas Natural in Mexico, and then collaborating in for the petrochemical, oil and gas industry in Mexico, before finally coming to Spain. I worked for a Spanish engineering company (Cobra & Dragados Industriales Mexico).

Five years ago I decided to do my mas-ters degree in logistics management in Madrid. I started working for Tuscor Lloyds in 2010 as project cargo manager.

MANAGEMENT STYLEI would definitely define it as flexible; my decisions mostly depend on the task, people involved and the situation that has to be managed. I strongly believe in fairness and responsibility.

LONG-TERM PROFESSIONAL GOALSTo continue developing my career in this industry. There is a lot to learn and so I look more to the short- and mid-terms of my career now. I would like to make the project department in Tuscor Lloyds Spain grow and become a well-known name in this industry and people seeing us as a reference.

I would also love to be involved in any kind of altruist activity that has to do with logistics. At the end it is all about own long-term satisfaction.

YOUR ROLE AS A DEVELOPING INDUSTRY LEADEROf course I want to play a very important and participative role. I am very pleased

to know that there is a lot of young and fresh talent in the industry, and I feel very confident on how the business environment has sheltered us and given people like me the opportunity to have a leader role in the industry, I believe we can contribute with new management skills and new ways of networking and business.

MOST IMPORTANT INDUSTRY ISSUEThis is a very dynamic industry and a very competitive market. Every project is different and it’s not a local business at all. One day you are focused on Latin American markets and the next you have to develop business in Asia. We need to be like a chameleon and adapt ourselves to every situation.

PAOLA BERARD

PHILLIP BROWNProduct Director – LogisticsFluor

Nominated by Kathy Canaan, Global Director Trade Compliance, Fluor

“Phillip Brown sets the standard for young leaders within Fluor by bringing innovative ideas to an always evolving, yet often overlooked function. By exhibiting a high

level of accountability, solving problems, and communicating effectively, he has advanced the consideration of logistics execu-tion with clients and also more extensively within the company.”

cover story


HOW YOU CHOSE THIS INDUSTRYI knew I wanted a career in the maritime industry from the time I started high school. I attended Texas A&M University at Galveston, where I immediately fell in love with the business and operations side of the commercial shipping industry. My course work reaffirmed my passion for the maritime industry, but like a lot of students, I was not sure specifically what kind of career I wanted or where I wanted to work until my junior year. It was in my brokerage and chartering class that I knew what I wanted to pursue as a career.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEThe maritime industry is unique in that it is a huge global industry, yet it is a cohesive industry that sometimes feels very small. It is also steeped in history, shaped with practices and maritime laws that date back hundreds of years.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUThere are several, but two individuals stand out who greatly influenced my career path and professional development. When I was still in college, I was very interested in pursuing a career in admi-ralty law. Dr. Thomas C. Fitzhugh III, my admiralty law professor, gave me some great advice: work in the industry for a few years and get some experience before looking further into pursuing law school.

John Hark taught my brokerage and chartering course. He introduced me to a few people and I ended up starting with BBC Chartering directly after gradua-tion. After working a few years at BBC, I thought back to how much I had learned after school and it was then that I real-ized why Dr. Fitzhugh had suggested waiting to pursue law school. I have had the privilege of working with both men

professionally and I still reach out to them for advice.

PROFESSIONAL BACKGROUNDI started my career in the maritime industry with BBC Chartering in May 2008, working through an 18-month-long training rotation as a vessel agent, vessel operator, in documentation, with the port captains and finally settled at the char-tering desk. Without the training that I received in those roles within the com-pany, I would not have had the knowledge or appreciation for what went into mov-ing breakbulk cargo.

I moved to the global projects group, focusing on specific accounts such as GE, Siemens, Alstom and Fluor. I worked as a chartering broker for BBC until March 2012, when I made the move to Fluor to work as product director for logistics. I was attracted to Fluor since it has a

PHILLIP BROWN

20,000 feet of docking space

HOUSTON CITY DOCKS 8–32 • Best choice for direct discharge or loading of over-dimensional cargo• Strategically located in the U.S. Gulf Coast• Direct rail access and easy interstate highway access• Worldwide coverage via all major carriers• Total of 52 docks in all Port of Houston Authority general cargo facilities

Port of Houston AuthorityAmerica’s Project Cargo Gateway www.portof houston.com/map | 713.670.2400

Check out our all-water services at

2451-PHA-BreakbulkMag-20000feet-8x10.875.indd 1 9/17/14 9:41 AM

cover story


strong global logistics team. The support from peers and management, as well as an environment that encourages learn-ing and professional development, has helped shape my professional develop-ment. I have since been involved with several projects at Fluor ranging from small international jobs to large domestic projects.

MANAGEMENT STYLEMy goal is to treat my colleagues with respect. I feel that if you treat people respectfully and fairly that most of the time it yields the best working relation-ship.

LONG-TERM PROFESSIONAL GOALSWhen you love what you do for a job, it makes going to work each day a pleasure. I am very passionate about this industry and my spe-cific field of work, and hope to keep growing professionally to be able to become a leader and mentor for future generations entering into a career in logistics.

YOUR ROLE AS A DEVELOPING INDUSTRY LEADERThere is a large gap in this industry between people with 20-plus years of experience and people with five-plus years of experience. I am trying to gain as much industry knowledge and experi-ence from those with more experience than myself in order to be a better and more knowledgeable individual. It is my goal to absorb as much knowledge as possible so that when I am an industry veteran, I can pass on my knowledge on the fundamentals and industry practices that set the foundation to future genera-tions coming up in the industry.

MOST IMPORTANT INDUSTRY ISSUEOne issue I see is the gap in knowledge and experience in our industry. The other issue I see is with technology. People today rely on automation and email correspondence. While email com-munication is standard practice, we can’t forget to pick up the phone. Whether it’s a vendor, service provider or a client, a phone call is much more personal and often times more beneficial than simply sending an email. We can’t lose sight that it’s the people in this industry that make it great. Maintaining those relationships is key to successful business.

PERLA CAMBEROSLOGISTICS MANAGER, MEXICOSIEMENS MEXICO

“Perla Camberos is results driven. Over the years I have seen her position herself in the middle of the action in different project cargo initiatives. Her unique background in the indus-try makes her valuable in each of the companies she has worked for. With the Mexican energy and infrastructure markets growing, she has the capability of leading future project teams successfully. She is breaking ground for other young talented female professionals in Mexico.”

Nominated by Rafael de los Santos, TRADELOSSA

HOW YOU CHOSE THIS INDUSTRYI started at 18 as a forklift driver, handling metals and structures in a maquila com-pany. I felt passionate to perform those

movements, helping the specialized oper-ators. Inside of me I feel a bit intrigued to know how these pieces had got there.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEEach shipment, rigging or movement is different. The level of expertise and commitment that you may reach is not measurable; behind each movement there is always a high impact project of social and/or economic nature. In managing this type of logistics we see our efforts reflected in an industry project completed.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUPrimarily my father. As a mechani-cal engineer he always challenged me and dared me to prove my ideas. In the industry, I’m lucky to have the chance to work with the best! In specialized rig-ging, Ruben Chavez director at Global Crane & Transport, taught me all I know about maneuvers and cranes; in trans-port, Raul Cuevas, owner of Transportes Muciño, and Rafael De Los Santos, CEO Mexico of Tradelossa. Operationally in transport I learned a lot from Pedro Her-nandez, owner of ATHER Transport. In specialized maritime I learned a lot (and I still do) from Ernesto Roman, commer-cial director of Armamex.

PROFESSIONAL BACKGROUNDI attended Universidad Hispano Mexicana in Mexico City in Business Administration, and earned a master’s degree in analysis and statistical process control at Queretaro University, In New York I received a diploma in Business Transfers For Import and Export at Boricua College, Brooklyn.

I have worked in manufacturing, the automotive industry, integrated logistics, maneuvering and rigging-lifting projects and specialized transport. I have served as a planner buyer, logistics team leader, logistics negotiator, transport facilitator, strategic logistics buyer, operations man-ager, and execution logistics manager in projects of national impact.

I have moved cooling towers and tanks for clean fuels project with Pemex; transformers and air coolers for power plants with CFE; transport and lifting

PERLA CAMBEROS

RZ_Ready._203x276.indd 1 14.01.15 20:49

cover story


columns and girders to the second floor of the center via of México City; interna-tional transport, customs clearance and maneuvers based on laying of founda-tions for segments, crowns, rolling hoops for Cemex to their cement kilns; interna-tional chartering aircraft to move urgent cargo goods to Cemex; performed the transport of turbines, blades and nacelles for a wind farm in Oaxaca (Huchitán) with Gamesa; handled international transport of storage tanks to the dam La Yesca in Nayarit; high tonnage trans-formers for ethylene XXI project; and currently am performing international transport and customs clearance of E Houses for Pemex oil platforms.

MANAGEMENT STYLEParticipatory, focused on solving, committed. I tend to be stubborn, but objective. I manage to work well in a team, but always my goal is leadership. I’m usually very nosy into the details because I think that from details the real knowledge is achieved.

LONG-TERM PROFESSIONAL GOALSReach the specialization, gain recogni-tion within the sector in which I actually develop myself, participate in projects with high social and economic impact along America, and to work in the U.S. where I’m sure I can contribute and learn much more.

YOUR ROLE AS A DEVELOPING INDUSTRY LEADERUpdate myself continuously with respect to technological advances in the indus-try, interacting with key leaders, looking for exposure, early and direct involve-ment in my projects for the breakbulk industry, giving results in optimal condi-tions, solving and resolving, improving with new ideas.

MOST IMPORTANT INDUSTRY ISSUEI am very concerned about the image the outside world has of Mexico. It worries me there are doubts about the logistics capacity we’ve reached and the infra-structure we’ve achieved. We have good leaders with solid knowledge in all areas of breakbulk, and we have shown that we can move almost any piece according to the highest world standards and we can equate with first-world countries.

ANDY FEBUSTRANSPORTATION PROJECT MANAGERNOOTER-ERIKSEN

“Andy Febus utilizes his strengths and abilities in critical thinking, complex problem solving, communication, decision- making and collaboration. He identifies strengths and weaknesses of alternative solutions, deals with complex problems and develops solutions. He creates options for addressing problems/ opportunities and achieving desired outcomes; consis tentlyincludes others in the decision-making process and consistently implements decisions or initiates action within a reasonable time. He works effectively with other industry leaders as he has established and maintains solid working relationships through his years of experience.”

Nominated by Derek L. Deterding, Manager of Logistics, Nooter-Erikson

HOW YOU CHOSE THIS INDUSTRYThrough the growth of my company and expansion into the international power generation market, I found myself needing to build upon my knowledge of trucking and rail transportation. I needed to learn how to integrate the ocean trans-port piece and with the ever-increasing sizes and weights of the components we ship globally. Project cargo is where my primary focus now lies.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEI believe you have to be among the best of the best to move project cargo. Project cargo is not something just anyone can do, and you need to be sure you know who you are doing business with. Do they have the capabilities and experience?

I also believe you really have to enjoy the challenges involved or you become pas-sive, and this is when mistakes are made and safety is at risk.

With that said, there are many in this industry that are experts at what they do. In some cases have become so well educated in the shipper’s cargo that they are able to offer additional value to the end product we provide to our customer.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUI have been influenced by a number in the industry, from freight forwarders, rail and heavy-haul carriers, fellow ship-pers and even competitors. Lynn Stewart of South Texas Shipping and Adrian Hawkins of Kuehne + Nagel are the most notable, as they have taken the time over the years to teach me and to make sure I really understood what and why things happen the way they do.

ANDY FEBUS

cover story


PROFESSIONAL BACKGROUNDMy background has always been in transportation and logistics. I have a degree in transportation and logistics management.

I have held positions focused on air, rail, truck, less-than-truckload, ocean and warehousing. Employers have been from industries such as engineering and proj-ect management, manufacturing, grain processing, and transportation.

MANAGEMENT STYLEI am not a micromanager, though when dealing with project cargo you cannot be hands-off either. I believe in making sure we have the right tools to do our jobs. I want people to understand not only what to do, but also why we do it a certain way.

There needs to be a clear understanding of the objectives, risks involved, and who the right partners are to aid in successfully accomplishing what needs to be done.

LONG-TERM PROFESSIONAL GOALSI see myself always being involved in plan-ning and execution of specialized moves in some capacity. I truly enjoy the challenges that they present. My long-term goals are in continuing education and becoming the most well-rounded individual I can be from a logistics perspective. With this I believe I can have a significant impact on my com-pany’s success and those around me.

YOUR ROLE AS A DEVELOPING INDUSTRY LEADERI don’t see myself as an “industry leader,” but rather as someone who wants to know what it takes to accomplish a move of real significance as it relates to size, weight or geographically.

I enjoy talking to people who are inter-ested in the industry and recognize that what we do is something special. I want others to understand that project cargo moves are very challenging no matter how routine they may become or how easy they may appear from the outside.

MOST IMPORTANT INDUSTRY ISSUERates are always at the top of the list. Whether they are being affected by the economy and the level of work going on, the fluctuating price of oil, or even the financial stability of some carriers, try-ing to gauge where rates will be 12 to 18 months from now is extremely difficult. Bidding on future work is very challenging.

Also, I believe there are companies who promote themselves as project cargo specialists that may not necessarily be accurate. It is one thing to have experi-ence moving a few over-dimensional/overweight pieces via breakbulk. It is another to move shipments of extreme size, weight and volume along with other unique characteristics.

The level of risk, planning involved, support of carriers, and a true under-standing of the cargo are all taken to a much greater level. This goes back to knowing who you are doing business with and their true capabilities.

LAURENS GOVERSMANAGER COMMERCE SHIPPINGJUMBO SHIPPING VOF

“Laurens Govers has been working at Jumbo for 15.5 years in several commercial job posi-tions. He is able to market new products and services linked to developments and trends in the heavy lift shipping industry.”

Nominated by Fred Bedford, director, Jumbo Shipping

HOW YOU CHOSE THIS INDUSTRYAfter graduating from Nautical College I worked for the Port of Rotterdam and Maersk Lines. I quickly discovered that these companies did not have the ship-ping dynamics I was looking for. Hence I applied for a job as chartering broker with the heavy-lift shipping company Jumbo and never regretted it since.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEIt is a dynamic industry where many external factors have their influence on the marketplace, for example, geopoliti-cal issues, the euro/dollar exchange rate or fluctuating oil prices. Every day is dif-ferent in this industry and therefore in some ways unpredictable. Every project is different, because every cargo has its own specific requirements. There is no one-size-fits-all solution and every client is different.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUI have had the privilege to start work-ing in the industry for the market leader, Jumbo Shipping. Jumbo has set the industry standard for almost 50 years and is still doing so despite the fact that the playing field has drastically changed. Over the past 10 years there has been an influx of vessels and heavy-lift companies supported by banks and/or investment companies. In this rapidly changing marketplace it is inspiring to work for an independent, family-owned company that continuously sets the industry standard.

PROFESSIONAL BACKGROUNDRotterdam Internal Logistics platform was cooperation between public and private parties to optimize container logistics for the Port of Rotterdam, where I worked right after graduation. This optimization contributes to the competitive advantage and increases business opportunities for the entire port region. Afterwards, I worked for Maersk Lines in the Far East depart-ment and for Jumbo Shipping as a chartering broker and within the past few years as manager of the commercial department.

MANAGEMENT STYLEI have the privilege to work with an international team of highly experienced people with long lasting careers within the industry. Therefore I would consider my main management style to be a par-ticipative one. If possible, I invite others to express their views and opinions and use those to make a business decision.

YOUR ROLE AS A DEVELOPING INDUSTRY LEADERI feel that it is important that the indus-try is regarded as a safe and reliable one.

SAVE TIME AND MONEY

Competitive Rates and Efficient Labor

Immediate Proximity to Interstate Highway System

Direct Connection to BNSF and UP Railroads

30 Minutes to Open Sea

No Port Congestion

Port of Galveston P.O. Box 328 Galveston, TX 77553 409-766-6112

www.portofgalveston.com

AN EFFICIENT PART OF YOUR SUPPLY CHAIN

SAVE TIME AND MONEY

Competitive Rates and Efficient Labor

Immediate Proximity to Interstate Highway System

Direct Connection to BNSF and UP Railroads

30 Minutes to Open Sea

No Port Congestion

Port of Galveston P.O. Box 328 Galveston, TX 77553 409-766-6112


AN EFFICIENT PART OF YOUR SUPPLY CHAINJust add Galveston.

SAVE TIME AND MONEY.• Competitive Rates and Efficient Labor.• Immediate Proximity to Interstate Highway System.• Direct Connection to BNSF and UP Railroads.• 30 Minutes to Open Sea.• No Port Congestion.

Port of Galveston ∙ P.O. Box 328 ∙ Galveston, TX 77553 ∙ 409-766-6112


Looking to add efficiency to your supply chain?

Port of Galveston resize.indd 2 12/2/13 3:25 PM

cover story


However, we see that clients and owners are tiptoeing to execute their projects in time. Carriers are invited at the very latest stage of preparation, leaving little room to incorporate their knowledge of heavy-lift transportation into the design of lifting/lashing lugs and or load spreading requirements. Sometimes, carries have less than six weeks between the initial inquiry and the actual trans-port. This automatically puts a huge strain on the engineering resources and the crew of carriers to execute the work safely. I notice a growing Quality, Health, Safety and Environment aware-ness within the industry, especially during fabrication, preparation and on the final jobsite. During the inquiry or tendering phase there is great empha-sis on engineering standards, QHSE procedures and compliance, etc. But unfortunately it sometimes seems the industry takes the execution for granted. We invite every client to have its own QHSE officer present during load out,

if only to ascertain that we are working according to the standards as agreed in the contract. We must remain alert that quality and safety remain crucial in every step in the process.

MOST IMPORTANT INDUSTRY ISSUEI feel that structural oversupply is the main one. Less than a decade ago, there were maybe a dozen ships that could lift heavy cargoes of 500 tonnes and more. Nowadays there are more than 70 ships. Besides increased lifting capacity these vessels have also become bigger and thus cargo carrying capacity has increased exponentially. Despite this grim fact there are still parties that invest in adding even more tonnage to the market. We have seen a similar trend in related industries like the container industry. Increasing capacity puts prices under pressure, which may lead to more industry consolidation. That is not any different for the heavy-lift shipping industry.

MOHAMMAD JABERCHIEF OPERATING OFFICER, REGIONAL DIRECTOR – PROJECT LOGISTICSAGILITY (ABU DHABI)

“Mohammad Jaber has shown his willingness to learn, keen business acumen and a penchant for health and safety. From his initial role in working for our transport operations to leading the team and now in transition to the Agility Project Logistics Management Board, his strong project logistics skill sets set him well for growth along the

MOHAMMAD JABERLAURENS GOVERS

Now this is how you serve the largest and fastest growing Florida market.

More than 80,000 jobs are tied directly or indirectly to Port Tampa Bay which provides more than 15 billion in economic impact to the Central Florida region. That’s just the beginning.

From now through 2020, the I-4 Corridor and all of Central Florida will grow at an unparalleled pace adding more than a million residents.

We already serve more than 8 million residents and 55 million visitors in Central Florida today that rely on the retail products, food, fuel, fertilizer, and building materials that import or export through Port Tampa Bay.

63* million customers

Port Tampa Bay

It’s time to reroute your thinking.BULK • BREAK BULK • CRUISE • CONTAINER CARGO • AUTOMOBILES

*8 million residents and more than 55 million visitors annually: Census and 2013 Visit Florida tourism estimates.

Reroute Your Thinking™

1 1 0 1 C H A N N E L S I D E D R I V E , T A M P A , F L O R I D A 3 3 6 0 2 w w w . P O R T T B . C O M | 8 0 0 - 7 4 1 - 2 2 9 7

cover story


of emerging markets. The company started as a local warehousing provider in Kuwait and grew to become the larg-est logistics company in the Middle East and one of the world’s largest integrated logistics providers.

This kind of growth has only been pos-sible because of the way global trade patterns are constantly shifting. Right now the Middle East is at the center of one of these major shifts, with location, infrastructure and services providing a perfect combination for trade.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUI have been affected by so many indus-try leaders who I consider as business partners, who are always challenging us to address their specialized demands. Agility invested in a leadership program

Cis4357_ARRC-AD_124mm X 178mm_p.indd 1 2015-02-04 2:27:41 PM

with Hay Logistics, I became intrigued by other sides of the industry, and joined Agility in 2007 as fleet manager, most recently becoming regional lead for project logistics in the Middle East and Africa region.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEIt’s a fast-paced industry where any-thing feels possible. The rise of emerging markets in the global economy is the single-biggest factor shaping global logistics and trade today. There is a huge demand for innovative logistics solutions that address increasing demands on cost control and productivity.

It is an industry that is challenged by geography and the environment, which has to constantly adapt to survive. Agility’s own story parallels the rise

specialty track in our global project network, as well as lead-ing a country within a regional setup. With his strong tactical positioning his advancement capability is limited only by him.”

Nominated by Grant Wattman, president & CEO, Agility

HOW YOU CHOSE THIS INDUSTRYToday our world is criss-crossed by a vital life support network of trade routes that are fundamental to our daily lives – but which many barely know are there. I have always found the global logistics and transport industry fascinating, and especially so in the Middle East and Africa region. After beginning my career


which helped me enormously, in terms of managing the business and our resources efficiently.

We move, manage and distribute the goods, which takes unmatched local knowledge and a diverse and talented team. Training and development oppor-tunities are essential to maintaining that edge.

PROFESSIONAL BACKGROUNDI have a bachelor’s degree in agricultural engineering from the University of Jor-dan, and since joining Agility in June 2008 I have held a number of key roles across the organization that have been instrumental in the successful growth of the Abu Dhabi’s business.

I started as a fleet manager and then became a transport manager, where I

later took responsibility for the projects business development operation. My areas of specialization are oil and gas, project logistics, heavy lifting and agri-cultural logistics.

MANAGEMENT STYLEAgility’s culture is built on employee dedication, accountability and deter-mination to go “above and beyond.” We strive to deliver personal service by taking ownership for results. Within project logistics it is crucial that staff feel empowered to take decisions and pro-vide solutions for our customers.

We also take seriously our responsibil-ity to act with integrity and give back. I believe that acting responsibly helps guide better management practices, benefits the communities where we work, adds to the sense of pride and col-

lective spirit among our employees, and strengthens our relationship with cus-tomers and shareholders.

LONG-TERM PROFESSIONAL GOALSIt is an incredibly exciting time to be at the forefront of logistics, and watching how it can transform emerging markets.

My long-term interest is to provide cre-ative solutions to our customers, with a significant focus on developing our workforce and differentiating Agility in the areas of customer service and health and safety.

MOST IMPORTANT INDUSTRY ISSUEFluctuations in fuel prices and political stability in several areas of the region are having a profound effect and will con-tinue to impact the industry in the short and medium term.

cover story


ANDRÉS LOZANODIRECTORTUSCOR LLOYDS SPAIN

“Andrés Lozano is a logistics professional with more than 17 years of shipping industry experience. In 2004 he began Tuscor Lloyds’ Spanish opera-tions in Barcelona. He has since expanded the Spanish offices to Valencia and Madrid, positioning Tuscor Lloyds as one of the top freight forwarding companies in Spain. With a background as a customer and then as a professional in this sector, he has used all of his skills to lead the Spanish team to

achieve its market leading position. 2010 saw further expansion of service offer-ing into projects, outsized and heavy cargo. He demonstrates entrepreneurship, leadership, profound knowledge of the market and negotiating capabilities.”

Nominated by Camila Mejia, Marketing Director, Global Logistics, Tuscor Lloyds

HOW YOU CHOSE THIS INDUSTRYA little bit by accident. In 1997 I was still thinking on becoming a stockbroker, but my first job when I was still in university was in logistics and then I just loved it. A very dynamic industry with lots of global interactions.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEGlobalization for sure. Giving the possibil-ity to all types of companies to export or

import any type of goods no matter what dimensions, weight, characteristics, etc.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUNot in the industry but in my first job. He just made things happen no matter what; there were always possibilities to achieve anything.

PROFESSIONAL BACKGROUNDSeven years working as head of logistics at Walmart Mexico and then 11 years at Tuscor Lloyds. First one was buying logistics and second one was selling it.

MANAGEMENT STYLEVery freestyle with plenty of confi-dence in my staff. Empowering people and always willing to try different approaches. I also believe in delivering results as the ultimate goal, so any style is welcome.

LONG-TERM PROFESSIONAL GOALSBe happy and make many more happy families.

MOST IMPORTANT INDUSTRY ISSUECollaborative thinking.

ANDRÉS LOZANO

http://www.tuscorlloyds.com/shipping-services/heavy-lift-services/


BEAU SCHINDLERDIRECTOR OF GLOBAL ACCOUNTSINTERMARINE LLC

“Beau Schindler is a trustworthy and proven leader in the project cargo industry. With more than 15 years in the project cargo industry from an ocean carrier’s perspective, he has been suc-cessful in all of the aspects of the business that he has worked in, whether it has been operations, line management or business development. He has the skills that make him a successful leader.”

Nominated by Jake Swanson, regional logistics manager, Americas, engineering, construction and maintenance, oil and gas, CB&I

HOW YOU CHOSE THIS INDUSTRYIn 1997 I was working at a shipyard in New Orleans and needed a change of pace. I was hungry for a new challenge and happened to connect with some fellow U.S. Merchant Marine Academy alumni who worked for Intermarine at the time. We met for dinner and over a handshake I accepted a position with Intermarine. The perpetual change of pace and abundant challenges remain to this day.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEWe are quite a unique niche that is small, yet versatile. The challenges we face each day are seemingly infinite – challenges which few industries can hold a candle to. Pirates, monster storms, ever-changing regulations, heavy-lifts, tight schedules, political turmoil, labor strikes and pric-ing pressures are just a few. Any one of these issues can literally destroy a suc-cessful voyage if not dealt with properly. It’s companies like Intermarine that are mindful of these issues, mitigate them

and continue to remain significant and influential in the market year after year.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOURoger Kavanagh and Sue Robertson both positively impacted my personal and professional lives. Kavanagh founded Intermarine in 1990, and I was fortunate enough to work under him while he was alive and leading the company.

He exuded tenacity and persistence in everything he did. If he saw that you cared about the business the way he did (albeit a nearly impossible feat), he would go out of his way to teach and challenge you. Kavanagh taught me to always be prepared, something that I pass along to my employees today.

Robertson, a former vice president of national accounts, was my first boss. Also tenacious in her approach to the business, she epitomized the term professionalism. During her time with Intermarine, she took on some of the company’s most demanding accounts, while never compromising on class and reputation.

PROFESSIONAL BACKGROUNDI graduated from the U.S. Merchant Marine Academy at Kings Point in 1997. I began my professional career with Avon-dale Shipyard’s outfitting department in New Orleans, where I was responsible for developing outfitting strategies for the Navy’s LPD17 vessels.

In early 1998 I entered the breakbulk industry by joining Intermarine as a sales trainee. After some training I was “kicked out of the nest” to handle accounts and call on shippers, brokers and forwarders across North America and Canada.

In 2001 I pursued an MBA full-time at the University of California, Irvine. Post-graduation, I spent two-and-a-half years in Marseille, France, with Bourbon Offshore, chartering workboats to companies like Shell and British Gas.

I moved back to the U.S. and accepted a job doing offshore vessel operations management in the Gulf of Mexico for Rigdon Marine, handling boats for Shell, Western Geco and Apache.

BEAU SCHINDLER

cover story


In 2008 I found myself back in New Orleans trying to scratch that itch I found at Intermarine. I reconnected with some former co-workers at Inter-marine and have been here ever since.

MANAGEMENT STYLEThe five key elements I manage by include: leading by example, staying positive, listening, being consistent and being transparent.

Today, it is easy to get caught up in man-aging people based on numbers, metrics and rigorous processes. While those are

JAKE SWANSONREGIONAL LOGISTICS MANAGER, AMERICAS, ENGINEERING, CONSTRUCTION AND MAINTENANCE, OIL AND GASCB&I

“Jake Swanson has shown great leadership skills and enjoys sharing his knowledge with others. He has also been instrumental in taking a more direct involvement in chartering vessels with the carriers, which has been an excellent cost savings option and has improved schedules. He has also joined multiple outside logistics committees including leading one committee for ECMC on educating up-and-coming logistics professionals. He is certainly one of the industry’s brightest stars, and will be

on top of the logistics leadership in the very near future if he is provided the support from the industry.”

Nominated by Doug C Hickey, global director – logistics, engineering, construction and maintenance, oil and gas, CB&I

HOW YOU CHOSE THIS INDUSTRYTo be honest the industry chose me and I went with it. I went to Kings Point, which got my foot in the door in the ship-ping industry, and shortly after that I got into the project cargo industry. I started on the terminal and warehousing side, then I transitioned to the ocean carrier side before coming over to CB&I.

INDUSTRY’S SIGNIFICANCE, FROM YOUR PERSPECTIVEWhat I like about our industry is that we are all working together to build something. Whether it is an LNG facil-ity, refinery, power plant, wind farm or steel tanks, it takes everyone working together to deliver projects in a safe and cost-effective manner.

The significant part is the communica-tion and coordination between industry professionals that help bring every together.

A MENTOR OR INDUSTRY LEADER WHO GREATLY INFLUENCED YOUI have been fortunate that in every stop

that I have made in my career there have been experienced and senior-level col-leagues that have taken me under their wing and showed me the ropes.

Without their willingness to share their experiences and guide me along, there is no way that I would be in the position that I am in today.

PROFESSIONAL BACKGROUNDMy background lies in ocean transport, specifically operations and chartering. Prior to joining the shippers’ side at CB&I (in 2011), I worked for two project carriers (Intermarine and Beluga), and prior to that I worked on the operations

important factors to consider, I try to place more value on doing versus saying.

I also communicate by sending clear, concise messages geared to be more con-structive in nature.

MOST IMPORTANT INDUSTRY ISSUE?Human resources – specifically, recruit-ing, developing and retaining top talent. Fancy ships, jazzy marketing campaigns, and high-tech gadgetry are aesthetically appealing, but it’s the people who create the solutions that deliver the most value to the market.

I think all companies and disciplines in our sector are struggling with this, including agents, stevedores, forward-ers, carriers and shippers. In a broader pool of resources, the breakbulk indus-try seems to lose out to the perceived greener pastures of information technol-ogy and oil and gas.

By fostering organizational cultures that put training, performance review systems and talent retention strategies at the top of our priority lists, our industry can make great strides and address this important issue.

JAKE SWANSON


side of a terminal and stevedoring and warehousing company.

I attended the U.S. Merchant Marine Academy, which exposed me to a wide variety of ocean transportation experi-ences. Although, now I am focused on all modes of transportation, my heart will always lean toward ocean transport.

MANAGEMENT STYLEMy management style is collaborative and working to build consensus within the group or team that I am working with.

There are times when this style is not possible, however what I have learned is that when everyone buys into and feels a part of what you and they are doing as a team, everything seems to come together more easily.

LONG-TERM PROFESSIONAL GOALSMy long-term professional goals are to continue to learn and challenge myself in what I am doing. I enjoy the challenge of working on projects and with projects and the people associated with them. To me that does not get old.

I enjoy leadership and development in all of its forms and working with people from other countries and cultures. I hope to continue to do these types of things throughout my entire career.

YOUR ROLE AS A DEVELOPING INDUSTRY LEADERI hope to help develop and support train-ing and education in our industry. I had the good fortune of some great mentors that helped to bring me along, and I hope to be able to do the same on an individual

Head Office: +44 (0) 1202 621511US tel: 011 44 1202 [email protected]

Experts in the design and manufacture of standard and custom designed Lifting Equipment• Modular Spreader Beams up

to 400t in stock and available for worldwide distribution

• Modular Spreader Beams for 2-5000t and spans up to 100m/330ft

• Experts in Custom Lifting Solutions and projects requiring high QA standards

• Quality assured products, all fully tested and certified

• DNV Design Approved as standard

Spreader Frames

Spreader Beams

Lifting Beams

level within my organization. Addition-ally, from an industry perspective, I hope to be able to champion these types of efforts that will help the next generation prepare to take a leadership role in our industry.

MOST IMPORTANT INDUSTRY ISSUEI believe that it is attracting and develop-ing new talented young people into our industry. The project industry is a niche that not all high school and college stu-dents are aware of.

As an industry, we need to do a better job to promote our industry at that level so that we can better attract the best and brightest. And once we have them in our industry, we need to do better at train-ing and developing them so that we keep them. BB

For decades, Latin America’s big-gest strength – its remarkable wealth of natural resources – has also functioned as one of the

biggest barriers to transforming its most promising nations into modern industri-alized countries.

Over the past decade, China’s emer-gence – and its seemingly unquenchable need for Latin American iron ore, coal, steel and lumber – made it possible for Brazil, Chile, Colombia and Peru to enjoy strong growth while nevertheless postponing their dreams of becoming modern industrial economies.

In 2014 GDP growth in Latin Amer-ica and the Caribbean grew by only 1.3 percent, the second-lowest growth rate in 12 years and more than one per-centage point below the rate projected in April 2014. The largest downward revisions were those for Argentina, Brazil, Chile, Peru and Venezuela. A combination of external and domestic factors explained these sizable down-ward revisions. On the external side, the weakening of key commodity prices has created a general sense of leaner times and caused the private sector to curb its spending. Domestic policy uncertainties have further depressed confidence in several countries.

For 2015, the Economic Com-mission for Latin America and the Caribbean is forecasting GDP growth for the region of 2.2 percent. However, ECLAC also forecasts that Brazil, the

UNFULFILLED POTENTIALBrazil, Chile and Colombia Face Barriers to Building Economies

By Alan M. Field

market spotlight



world’s seventh-largest economy, will grow by only 1.3 percent this year, because of sluggish demand for its commodities on the part of key trad-ing partners such as China and the European Union. In contrast, ECLAC predicts growth of 3.2 percent in Mex-ico, 3 percent in Chile and 4.3 percent in Colombia. The weakest perform-ers in the region will continue to be Argentina and Venezuela, two populist governments that have not welcomed foreign investment.

With the recent slowdown in the Chinese economy – and continued forecasts for weak growth in Chinese demand for such commodities – has the region’s squandered its last, per-haps best opportunity for expanding its manufacturing capabilities been squandered?

Brazil StumblesGiven Brazil’s high global profile

as the “B” in the BRIC bloc of nations (along with Russia, India and China), it’s not surprising that the South American country dominates the steel sector in the region (See “Leading South, Cen-tral America Steel Exporters”). And yet, crude steel production in Brazil increased by only 21 percent from 2000 to 2008, with a 2009 decline to a level even lower than in 2000. Production declined once more in 2012, before fall-ing back still further in 2013 to remain at 4 percent below the 2007 output. According to the World Steel Associa-tion, Brazil finished 2013 as the world’s ninth-largest steel producer, with an output of 34.2 million tons.

Historically a strong exporting nation, in 2014 Brazil also posted its first annual

trade deficit in more than 14 years last year, Brazil’s Trade Ministry said.

According to a recent report by the Latin American Steel Association, there are three key barriers to fulfilling the region’s potential for becoming a major exporter of industrial inputs and fin-ished goods:

• The appreciation of many Latin American currencies after 2010 “remains an important challenge for international competitiveness and represents one of the main causes of inflationary pres-sures, as well as an emerging risk of the “Dutch disease” among many coun-tries. (The Dutch disease refers to the apparent inverse relationship between economic development of a country’s natural resources and a decline in its manufacturing sector).

• The region’s continued overde-pendence on raw material exports, precipitated by exceptional demand from China, rushing to catch up with other major nations of the world.

“This makes Latin America vulner-able to international turbulences and pushes the economies towards a basic production structure that do not add value to the goods and therefore affects the growth potential and development path in the long term,” said the steel association’s report. “The trend that pushes into mining and raw materi-als activities has already provoked an impact on the manufacturing sec-tor. Since 2009 there has been little, if any, progress in industrial production. Those figures have been stagnating and alerting the sector about a worrying deindustrialization process.”

One of the world’s largest iron ore producers, Brazil exported 170 million tons of iron ore to China in 2013, nearly

LEADING SOUTH, CENTRAL AMERICA EXPORTERS STEEL MILL PRODUCTION

BRAZIL | ARGENTINA | COLOMBIA | TRINIDAD & TOBAGO | PERU | VENEZUELA | CHILE | OTHER | DOMINICAN REPUBLIC | URUGUAY | CUBA

2012 TOTAL: 11.47 million tonnes

2013 TOTAL: 9.47 million tonnes

Most recent statistics available / Source: ISSB Ltd.

Aerial view of a Brazilian iron mine. China’s waning demand for raw goods has contributed to Brazil’s recent economic slump. / Credit: Eye Ubiquitous/Newscom

http://en.wikipedia.org/wiki/Natural_resources

http://en.wikipedia.org/wiki/Secondary_sector_of_industry

market spotlight


three times as much as the 60 mil-lion tons it exported to China in 2005. According to BBVA Research’s Commod-ity Concentration Index, the dependency rate of Brazilian iron ore exports on demand from China increased 48 per-cent from 2005 to 2013.

Alicia García-Herrero, chief econo-mist for emerging markets at BBVA Research, said the recent slowdown in demand from China would have sig-nificant implications for major iron ore producing economies in the region. China is the world’s largest consumer of iron ore, importing more than 930 million tons in 2014, she added. Its largely investment-led growth model through much of the last decade helped to fuel a commodity super cycle, propping up iron ore prices and benefiting com-modity exporters. Other iron exporters in the region, such as Argentina and Peru, also saw their dependency increase during the same period.

Walter Kemmsies, chief economist at global infrastructure advisors Moffatt & Nichol, said that when global prices of iron ore, copper and other commodities shot up, Brazil, Chile, Peru and Colom-bia “really started to benefit from that. But these countries thought that this commodity cycle would last forever, so they overinvested in terminal capacity.”

Huge investments were made in expanding the capacity of iron ore ter-minals, in particular. “In Brazil alone, the prime capacity for iron ore termi-nals built – and planned – exceeded the tonnage of iron ore traded in the entire world, as of two or three years ago,” Kemmsies said. “It should come as no surprise that a lot of these terminals have (later) been under financial dis-tress. South America needs to rethink its development and export strategy. It

MEXICO BECOMING INDUSTRIAL POWERHOUSE

MEXICO’S TOP 10 EXPORTS VALUE % OF TOTAL EXPORTS

Electronic equipment $77.84 29.3%Vehicles excluding trains and streetcars $77.19 20.3%Machinery $53.95 14.2%Mineral fuels including oil $48.79 12.8%Optical, technical and medical apparatus $12.81 3.4%Pearls, precious stones metals and coins $9.82 2.6%Furniture, lighting, signs, prefab buildings $8.19 2.2%Plastics $8.08 2.1%Iron or steel articles $5.73 1.5%Vegetables $5.45 1.4%

In $billions, 2013 is most recent year statistics are available.Source: International Monetary Fund’s World Economic Outlook Database

In February Mexico for the first time replaced Brazil as the most promising Latin American mar-ket for Japanese manufacturers, according to a survey by the Japan Bank for International Cooperation.

In that survey, Mexico ranked as the sixth-most-promising country in the world for Japanese manufacturers surpassed only by, in descending order, India, Indonesia, China, Thailand and Vietnam.

For decades, mineral oils and fuels were Mexico’s most valuable category of imports, but last year, only two of Mexico’s top 10 exports were commodities: crude oil (12.8 percent of total exports) and gold (2.4 percent). Other leading export categories were electronic equip-ment (29.3 percent of total exports); vehicles, excluding trains and street-cars (20.3 percent); machinery (14.2 percent); and optical, technical and medical apparatus (3.4 percent).

By contrast, nine out of Brazil’s 10 largest categories of exports (in 2013) were commodities: iron ore, crude petroleum, soybeans, raw sugar, poultry, soybean meal, cof-fee, corn and refined petroleum.

The only manufactured-good category to make Brazil’s list was aircraft, which amounted to 2.1 per-cent of its total exports.

While South America’s larg-est countries have yet to make the transition into value-added manu-facturing, Mexico is leading the way among Latin American nations. The Organization for Economic Cooperation and Development’s November 2014 forecast notes that “a strong rebound of exports, improved confidence, and fiscal stimulus have driven a recovery, with manufacturing leading other sectors.”

What is fueling Mexico’s manu-facturing boom? Over the past five years, Mexico has attracted nearly US$10 billion in foreign direct investment from the automotive sector, according to the Center for Automotive Research in Ann Arbor, Mich. Ford, Mazda, BMW, Ford, Audi, GM, and Nissan are among the major producers to construct or plan construction of automotive plants in Mexico, all focused on

continued on page 34

Alicia Garcia-Herrero

Walter Kemmsies

INTEGRITY

INNOVATION

INTENSITY

NYK Bulk & Projects, a wholly owned subsidiary of Nippon Yusen Kaisha (NYK), is one of the leading ocean carriers of bulk and heavy/project cargo. All over the world, we operate more than 200 vessels, including fleets of multi-purpose carriers, Handy/Handymax bulkers, and Open Deck Carriers (Non Submersible).

Integrity, Innovation and Intensity — the 3 I’s — has been transformed into NYK Group Value and engrained in our DNA. We aim to bring more value to life by being of service to industry, energy supply, and urban infrastructure development globally.

Bringing Value to Life Carrying Dreams for Tomorrow

www.nbpc.co.jp

18-21 May 2015Antwerp ExpoPort of Antwerp, Belgium

REGISTER NOW AT www.breakbulk.com/europe

BOOTH # HALL #

132 1

market spotlight


is not that this demand will fall, but that it is not going to grow much. The sooner everyone gets their heads about that, the better off everybody will be.”

• The third major barrier to expand-ing Brazilian exports of iron ore and other products has been the weakness of its transportation infrastructure. For steel exporters, Kemmsies noted, a major concern is figuring out how much ter-

minal capacity will be required. Should exporters’ primary goal be to increase the capacity of those terminals, or to increase their efficiency? He argues that, “with steel prices being down, along with other commodities, you have to worry about efficiency. It’s all about efficiency. Otherwise, you can’t make a profits if prices are low.”

However, a major challenge to boost-

ing terminal efficiency is improving access into and out of those terminals, by improving surrounding road and rail infrastructure.

In at the Port of Santos, South Amer-ica’s largest port, congestion continues to be significant, largely due to the roads serving the port not being equal to the task. So another major road is being planned to relieve that congestion.

“But even if you make the terminals more efficient, you still have to worry about the whole supply chain; building rail access to the terminals,” Kemmsies said. As world trade volumes recover over the next few years, “things are going to get a lot worse” at ports like Santos, before they get better. “Unless the private and public sector work together on a master plan to improve the weaknesses in infrastructure,” there won’t be enough money and planning to get the job done right, he said.

Brazilian-born economist Felipe Monteiro, a professor at INSEAD busi-ness school in Fontainbleau, France, forecasts that 2015 will be neither a good year nor a chaotic year for Brazil. “It is important to counterbalance [nega-tive forecasts] with the observation that, while Brazil’s exports are heavily commod-ity-dependent, most of Brazil’s GDP does not come from exports. Exports are only a small portion of the GDP.” Monteiro added that the deterioration in the “terms of trade” of Brazil – the ratio of export prices to import prices – “does not necessarily mean that it will have a big impact on the Brazilian GDP.”

Chile, Colombia ChallengesChile and Colombia face their own

share of challenges. In Chile, where cop-per is king, no effort has been made to add capacity to copper terminals. Chile has focused instead, quite properly, on “improving the efficiency of its termi-nals,” Kemmsies said.

Authorities in Chile recognized years ago that if they lowered their production costs, they could still make a profit even

serving the U.S. market.In 2014, Mexican plants

produced more than 3.2 mil-lion vehicles, a nearly 10 percent increase over 2013, of which they exported 82 percent – over-whelmingly to U.S. consumers – according to Eduardo Solis, executive president of the Mexican Automotive Industry Association. This year, Mexico could manufac-ture as many as 3.5 million light vehicles (cars and trucks), Solis pre-dicted. By the end of this decade, he project Mexico’s annual pro-duction will total 5 million vehicles.

In dramatic contrast, Brazil’s automotive sector suffered the second straight year of declines in 2014, as the Brazilian economy almost came to a halt. Unlike Mexico, Brazil exported only 15 percent of the vehicles that it man-ufactured. Thus, Mexico edged out Brazil as the world’s seventh-largest automotive producer, and fell further behind Mexico as a vehicle exporter.

For Mexico, other recent capital-intensive investments to be completed include:

• Chinese high-tech giant Hua-wei’s US$1.5 billion plant, research and development center and net-work operations center.

• American off-road vehicle maker Polaris Industries’ US$110 million expansion.

• China-based Risen Energy’s US$600 million solar power plant.

• Kellogg’s US$52 million investment at its cereal manufac-turing plant in Querétaro.

What’s behind the sudden burst in Mexico’s appeal for for-eign manufacturers? Mexico’s proximity to the U.S. has enabled it through the North American Free Trade Agreement (NAFTA) to provide Asian, U.S. and European investors in Mexico with duty-free access to the huge U.S. consumer market. Moreover, the U.S. econ-omy has finally recovered from the financial crisis that began in 2008-2009, sparking strong demand for vehicles. Made-in-Mexico vehicles offer U.S. consumers major global brands, without advertising the fact that they are assembled south of the border.

Over the next few years, Mex-ico is expected to become an even greater vortex of industrial trade, as the government proceeds with its ambitious initiatives to open its energy and telecommunications sectors to capital-intensive foreign investment.

As for the ports handling this burst of activity in industrial trade, Walter Kemmsies, chief economist at Moffatt & Nichol, said, “the Mexican approach has been more balanced and more progressive than anywhere else except Chile. The terminal operators are invest-ing in concessions, and they are working with railroads to get them to move around the ports,” rather than prolonging the sorts of bot-tlenecks that are endemic in Brazil.

continued from page 32

Felipe Monteiro


COUNTRY 2011 2012 2013 2014 2015*

Peru 6.9 6.3 5.8 4.3 5.3Bolivia 5.2 4.8 6.7 5.5 4.7Paraguay 4.0 -0.9 14.4 4.9 4.4Ecuador 8.0 4.8 4.5 4.1 4.3Colombia 5.9 4.0 4.7 4.8 4.6Chile 6.0 5.6 4.1 2.3 3.5Uruguay 5.7 3.9 4.4 3.1 3.7Mexico 3.9 3.9 1.1 2.5 3.8Argentina 8.9 1.9 2.9 -1.6 0.2Venezuela 4.2 5.6 1.3 -2.6 0.2Brazil 2.7 0.9 2.5 1.0 1.4

SOUTH AMERICA, MEXICO GDP, INFLATION FORECAST

GDP ForecastEconomists report that Latin America’s overall GDP growth slowed to 1.4 percent in 2014 but is expected to rebound in 2015, forecast at 2.4 percent.

*Forecast / Source: Consensus Economics, www.consensuseconomics.com

COUNTRY 2011 2012 2013 2014 2015*

Venezuela 29.0 19.5 52.7 67.7 55.6Argentina 9.5 10.8 10.9 29.3 26.7Uruguay 8.6 7.5 8.5 8.4 7.4Bolivia 6.1 5.3 6.5 7.7 6.2Brazil 6.5 5.8 5.9 6.4 6.1Paraguay 4.9 3.9 3.8 5.1 4.6Ecuador 5.4 4.2 2.7 3.5 3.7Mexico 3.8 3.6 4.0 3.9 3.5Peru 4.7 2.6 2.9 3.0 2.7Chile 4.4 1.5 3.0 3.8 2.7Colombia 3.7 2.4 1.9 3.3 3.2LATIN AMERICA 7.1 5.9 8.7 12.1 10.9

Inflation ForecastWhile Latin American inflation rates vary widely, Argentina and Venezuela are forecast to continue to head the pack by a significant margin through 2015.

when world prices for copper declined. In Chile, the government has launched a strong public and private investment program worth about US$28 billion through 2020. This program includes 25 public-private partnerships and private initiatives, including many still under study, for upgrading roads, logistics, and urban and port infrastructure. According to research firm BNamericas, “there is a consensus among authori-ties and investors that projects need to be improved and contracts need to be refined in order to prevent later cost overruns for all parties involved.”

In Colombia, whose economy is more diversified than Chile’s, there were grandiose plans to invest in expanding the country’s coal production capacity, and build the expensive infrastruc-ture required to transport coal across mountain ranges to the ports from which it would be transported to China. However, such plans have been greatly jeopardized by two recent developments:

• International benchmark prices for coal have dropped nearly 50 percent from peak levels to about US$62 per tonne.

• “The Chinese say they are going to burn less coal,” because of growing awareness of climate change, and grow-ing opposition to coal in Europe and the U.S., Kemmsies said. “So the whole global demand story for coal is kind of shot.”

Fearful of overdependence on com-

modity exports, Colombia has also been making efforts to move up the value chain to become a value-added manufacturer.

“Colombia is taking definitive steps in its transport infrastructure to reduce logistics costs, reduce travel times and connect production cen-ters with export ports,” according to a recent report by BNamericas. Here again, public-private partnerships will play a major role in this strategy. The government has set a goal of increasing both public and private investments in roads, ports, rail and airport infra-structure from about 1.5 percent of Colombia’s GDP currently to at least 3 percent of its GDP by 2016.

In Brazil, encouraged by the more recent depreciation of the Brazilian real, Brazilian exporters are gearing up for a major export push, hoping that the government takes a more proactive stance, not only to reduce infrastructural barriers to Brazilian exports, but the legendary bureaucratic obstacles known as “The Brazilian Cost.”

Armando Monteiro, minister of development, industry and foreign trade, said Brazil has been suffering “economic difficulties,” and that it now needs a com-mercial policy that is “more active and more pragmatic.” In anticipation of Bra-zil’s new National Export Plan, expected in March, Monteiro noted there would be new tax exemptions for exporters,

measures to stimulate financing, and new investments aimed at making Brazilian companies more competitive abroad. Monteiro has said the Amazon River port of Manaus, and its free trade zone would receive some extra export incentives.

Nevertheless, delivering on Brazil’s long-delayed poten-tial as an industrial powerhouse will take years. According to Brazilian govern-ment forecasts, it will also take a great deal of money – about US$23.8 billion in new investments through 2017 – to implement a major new initiative to tackle the bottlenecks stifling Brazil’s port system, thus speeding up move-ment of all categories of cargo, and reducing logistics costs.

Concessions to operate ports will be awarded to those investors that offer to provide the greatest handling capacity at the lowest cost. At best, however, major greenfield projects are expected to take four to seven years to go into operation, which means that projects planned in 2015 may not be ready in time to relieve the even greater congestion expected as global trade accelerates into higher gear in the years beyond. BB

Armando Monteiro

In 2012 power and automation tech-nology group ABB won an order worth about US$50 million to refur-bish the Cahora Bassa high-voltage

direct current (HVDC) converter station in Songo, Mozambique.

The contract entailed replacing key equipment including three transformers – no easy task taking the location of the substation at the top of the Songo Pass into consideration. Moving high-value abnormal cargo through war-ravaged Mozambique is difficult enough, thanks to primitive road and bridge infrastructure. Navigating it up the nearly 10-kilometer

B R I D G I N G MOZAMBIQUE

Girder System, Teamwork Smooth Way for Transformers

By Liesl Venter pass with its extreme slopes and gradients is another matter altogether.

Instar Projects (formerly BDP) was tasked with the challenge.

“We had been in discussions with ABB around the project, but we came on board officially at the end of 2013 and planning started in earnest immedi-ately,” said Hendrik Wagner, engineering director for Instar Project Logistics.

There was very little time to waste, as the three transformers had to be delivered prior to the start of the Mozambican rainy season in Novem-ber 2014. Treacherous roads in the dry season are common enough in the southeastern African country. Rains would make the roads near impassable

with the very real possibility of all road upgrades done for the project washing away during flashfloods.

“From the very beginning it was clear that a custom solution would be required. The big question was what solution would be the most cost effec-tive in the long run,” Wagner said. Devel-oping a customized transport solution “would not neces-sarily see a return on investment and would not be used in any other projects, but would require less infrastructure

Hendrik Wagner

One of three transformers, weighing in at 149 tons, crosses a propped bridge in Mozambique while en route to the Cahora Bassa power plant in Songo. The transformers were moved through Mozambique using a specially designed girder system, which allowed the cargo load to be spread over a wider area, ultimately meaning fewer bridges had to be propped or bypassed. / Credit: Instar Project Logistics and ALE

case study



improvements.” The other option would be “standard transport solutions but spend heavily on upgrading the roads and propping of bridges.”

The three transformers, weighing in at 149 tons each, would be the heaviest loads ever to pass through this particular section of Mozambique.

“The biggest concern and chal-lenge with this project was the last 200 kilometers in Mozambique, and the investment into the road and bridge infrastructure would have been sig-nificant. Keeping the budget below the benchmark given by past transports was what we had promised ABB, even though we’re moving a 15-ton heavier load,” Wagner said.

Instar had been toying for some time with the idea of a girder system that spreads cargo load more evenly over a wider area.

“The basic concept was on our desks already by the time we got the Cahora Bassa contract, and so it was really about seeing if it would work for this particular project,” said Wagner, who spoke about the project during a case study execu-

tive presentation at the Breakbulk Africa Congress in February.

By building a girder system – effec-tively customizing the transport solution – the team would have to prop and bypass far fewer bridges.

The girder system finally won out thanks to the information garnered from a detailed analysis of the road and its infrastructure, investigating the exper-tise and capability of local partners and taking the timelines available into con-sideration.

“The transformers, manufactured in Sweden, were transported via sea freight to the Port of Richards Bay in South Africa from where they were trucked some 2,000 kilometers through South Africa and Zimbabwe to Mozambique,” Wagner said.

A total of 45 bridges – most with typi-cal spans of 15, 18, 20, 25 and 27 meters – were crossed during the journey. Ulti-mately only five were propped and three bypassed – all within the last 200 kilo-meters of the route in Mozambique.

“The bridge infrastructure was far better than what we had initiatally antici-

pated. ” Wagner said. “But the need to only prop five bridges was thanks to the girder that we developed that was far more optimum a solution than trying to mobilize transport equipment from abroad or even to try and source from the local market and upgrade more bridges.”

Building a GirderThe concept of the girder would allow

the team to distribute the loads of the transformers far better on the mostly pre-cast concrete beam bridges being crossed.

“The girder would allow us to spread to the width of the structure, thus reducing the total load on the bridges,” Wagner explained. “What we designed was a transport combination that was much lighter than what was available on the market.”

Consisting of a frame of 30 meters by 4.5 meters weighing 30 tons suspended between two nine-axle trailers, the girder incorporated the transformer into the load distribution.

“The concept was taken from the bridge construction business and adapted for the transport business. The transformer

case study


was thus suspended in the frame across the two trailers,“ Wagner said.

The decision was taken to prebuild the girder in Germany as well as the five bridge props that would be used. This was all sent in containers to Africa.

“A laydown area was constructed in Mozambique just after the border post, and this was where the girder was assembled and from where the bridges were propped,” he said.

Transport CombinationsThree transport combinations were

used during the movement of the cargo, said Johann van Zyl, project manager of East Africa for ALE, the heavy service lift provider on the project.

For the first 2,000 kilometers, one 11-axle-line Cometto trailer and two 14-axle-line Goldhofer trailers, each with a two-file configuration, were used.

“The transformers went directly from the heavy line vessel onto the trail-ers on arrival at the port. There was a bit of a delay in the departure as the cargo had to be weighed to be granted permits, but within a week they were on course,” van Zyl said.

The most challenging part of the route was navigating two notorious bor-der posts – Beit Bridge between South

Africa and Zimbabwe, and Nyamapanda between Zimbabwe and Mozambique.

“Also shortly prior to the project a rockfall damaged the Chivake Bridge in Zimbabwe, and we had to unexpectedly bypass the bridge along a 50-kilometer gravel road,” van Zyl said.

On arrival in Mozambique the trans-port combination was adjusted for the girder system, and the transformers were taken to the foot of the Songo pass one at a time using the girder.

“There was a lot of preparation work that needed to be done for this project, as it was essential once the load was moving that we would have to work quick and fast,” van Zyl said.

With the transformers only arriving in South Africa in the first week of September the team had just two months to complete the transport before the rains set in.

According to Van Zyl, none of the transport combinations, however, would make it up the final 9.8 kilometers of the Songo pass, so it was decided to use a self-propelled modular transporter (SPMT) for the final leg of the journey,

while the transformers were finally posi-tioned in the substation using jacking and skidding techniques.

“The pass has a road width of only seven meters with a gradient that varies from 9 percent to 16 percent with very tight hairpin bends. The girder was not going to make it to the top, and the most efficient way to deliver the transformers up the pass was using an SPMT,” van Zyl said.

Only 60 days after arriving in Africa the transformers were up and running at Songo.

“There were several challenges that had to be overcome, from working in extreme heat to keeping to very tight deadlines thanks to the looming rainy season,” he said. “But valuable lessons were also learned for future projects including the importance of involving the local communities in the activities.”

Theft was a major concern for the team, but a decision to ask local leaders to appoint locals living in the villages along the route to watch and guard over the cargo as opposed to hiring a professional security team paid off with not a single item lost to theft during the entire project.

“You also have to have the right team in place,” van Zyl said. “The African con-ditions are harsh and the infrastructure is very sparse with little or no mechani-cal and spare part backup. There is no room for error and so any teams working on the ground have to be in tune with each other and constantly communicat-ing to ensure that everyone is on the same page. There is no cutting of cor-ners, and one has to make sure that you have trustworthy people who are com-mitted to the project as part of the team.”

Wagner concurred saying teamwork made the difference.

“In Africa one has to expect the unexpected. The truck convoy was delayed for more than two hours one day as the team had to get a black mamba out of the cab of one of the trucks. You never know what is going to happen, but being able to work as one, you are guaranteed that a solution will be found,” he said.

Ultimately leveraging vast technical competence, combined with strong local presence and a clear understanding of the market this project was successfully completed allowing for the upgrade of the Cahora Bassa power plant. BB

Three 149-ton transformers were maneuvered to the top of the Songo pass with a self-propelled modular transporter (SPMT). / Credit: Instar Project Logistics and ALE

Johann van Zyl

SEEKING SILVER LININGSMPV Rebound Moves Further on Horizon

By Susan Oatway

We are just back from Breakbulk South Africa, and the optimism and enthusiasm from that country is brightening up a dreary London morning. There was a lot of optimism for project cargo in the region

and African trade in general. Although falling oil prices have hit the region in the short term, recovery is inevitable and a poten-tial boom is coming. It is a sentiment that Drewry agrees with – although with slightly more caveats.

fleet outlook



Fleet DemandDrewry estimates that dry cargo vol-

umes grew about 6 percent in 2014. This demand growth is expected to average 4.8 percent this year and 2016.

We have done a lot of work over the last year with the UN Commodity Trade Statistics Database, or UN Comtrade, and we have worked to produce a compre-hensive time series for dry cargo demand by commodity and mode, in conjunction with colleagues on the container and bulk teams. We estimate that general cargo demand rose 3.6 percent in 2014 and container cargo increased 5.2 percent. We expect these sectors to see growth of nearer 6 percent and 5 percent, respec-tively, over the next two years. Meanwhile non-containerized general cargo grew about 2.7 percent in 2014 but is expected to see increases in line with the general cargo sector as a whole to 2016.

Having made our assessments of total cargo growth, we then look at the potential share of each part of the mar-ket available to the multipurpose and heavy-lift fleet. The share of the bulk cargo is principally to do with the minor bulks, everything from agricultural products to steel to timber to aggregates. This share dropped significantly over 2013 as competition from the other sec-tors intensified. However, recovery was seen in 2014 and is expected to continue at an average of about 15 percent over the forecast period to 2016.

With regard to general and project breakbulk cargo, the multipurpose share of this has continued to fall over the last three years. But as market conditions in competing sectors improve and demand continues to grow, we would expect this to stabilize at about an 18 percent to 19 percent share.

MPV, Heavy-Lift FleetAs of Jan. 1, the multipurpose fleet (as

defined by Drewry) numbered 3,252 ves-sels with a combined total deadweight of 29.5 million tonnes and an average age of 14 years. More than 70 percent of this fleet (in terms of number of ves-

sels) is below 10,000 dwt but the average deadweight is rising. From the current operating fleet, the average deadweight for 1980 was 5,500 dwt, growing to 8,000 dwt in 2000, 13,000 dwt for 2010 and reach 18,150 dwt in 2014, even though deliveries fell.

Looking at the project carrier fleet in more detail, the vast majority of these vessels are in the 10,000-15,000 dwt and 15,000-20,000 dwt sectors, and more than 25 percent of both these sectors are premium project carrier tonnage. There are currently 850 vessels with this enhanced lift, 26 percent of the total fleet number, of which 316 have a lift capacity

MPV FLEET AGE PROFILE AS OF JAN. 1, 2015

3000

2500

2000

1500

1000

500

0

1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

2-5,000 DWT 5-10,000 DWT 10-15,000 DWT 15-20,000 DWT 20-35,000 DWT 35,000+ DWT

Source: Drewry Maritime Research

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

left axis: number of vessels right axis: average DWT

MULTIPURPOSE FLEET DEVELOPMENT TO 2016 (‘000 DWT)

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

2008 2009 2010 2011 2012 2013 2014 2015 2016


multipurpose vessels project carriers including heavy lift

fleet outlook


greater than 250 tonnes. More than 60 percent of the fleet larger than 10,000 dwt has enhanced lift capacity, whereas only 16 percent of vessels below 10,000 dwt are classed as project carriers.

When we forecast fleet development, we look at the schedule of expected newbuilding deliveries and any expected further ordering levels, combined with an assessment of future demolitions. Deliveries have come down from the peak in 2011 and indeed hit a new low in 2014, but they are expected to settle at a historical average of just below 1 million dwt. Demolitions also dropped further in 2014 but are, again, expected to settle around the 1 million dwt mark.

It is interesting to note that the majority of deliveries are for project car-riers whereas the majority of demolitions are for simple MPVs.

Meanwhile the current orderbook is at just 6 percent of the operating fleet. This is particularly low, especially when compared with the container and bulk sectors. Within the orderbook, the most popular sectors are the 10,000-15,000 dwt and 20,000-35,000 dwt, whereas below 10,000 dwt the orderbook repre-sents barely 2 percent of the fleet, and the 15,000-20,000 sector, which has no newbuilding activity at all.

When Drewry calculates fleet devel-opment, we also look at slippage levels for newbuildings, to ascertain a more realistic delivery schedule, and we calcu-late projected demolition levels. Slippage levels fell considerably over 2014 as the orderbook emptied. We calculated that

just 16 percent of the 2014 orderbook was not delivered within its original dates, compared with nearer 30 percent in 2013. We believe that figure will remain at about the same level over the coming year as the orderbook in this and other sectors continues to wane after the high numbers of newbuilding deliveries over the last few years.

If we take all of our assumptions for slippage, newbuilding and demoli-tions, we arrive at a fleet development as shown in figure 3. This is for MPV and project carriers combined and produces a fleet growth of barely 0.1 percent a year over the period shown. However, it is clear that all of the fleet growth is in the project carrier sector while the simple multipurpose vessel is on the decline. Project carrier deliveries over the last five years have averaged 63 percent of the fleet newbuildings per year. Mean-while the simple multipurpose vessel continues to age, at an average 17 years compared to just eight years for the pre-mium project carriers.

If we split the fleet into simple MPV carriers versus project carriers, we can clearly see the potential decline in the MPV fleet numbers, with little invest-ment beyond replacement tonnage. But the project carrier fleet – which is after all the smaller and younger of the two – shows growth of about 3 percent per annum through 2016. This is because firstly the fleet is too young to see sig-nificant demolition numbers, but also owners are replacing their “simple” ships with high-specification vessels that can

add value to any contract.So, if we take all of these assump-

tions we can make some assessment of the growth in supply and demand. Firstly the effective fleet – one where an allowance is made for increased pro-ductivity for newbuildings versus older vessels being demolished – the effective combined fleet is expected to stagnate over the next few years with an average growth of just 0.1 percent, with all of the growth in the project carrier sector.

However, the effective demand for the fleet – taking into account all the competing areas where these ves-sels find cargo – is expected to grow at about 5 percent per year. This is a little slower than 2014, but much of the growth there was making up for decreases seen in 2013.

The fly in the ointment is always the competing sectors. Much of this improvement – especially on the demand side – relies on container and bulk rates improving and those vessels returning to their more conventional volumes. But if bulk and container rates do not improve quickly and the over-tonnaging scenarios in both sectors exacerbate the demand shortages in their sectors, then utilization could fall again.

At Drewry, we are putting together our annual report on the multipurpose and heavy-lift market. We believe that the competition to this sector is the key to determining how rates will move over the next two years. Currently rates are at all-time lows in most sectors, and there is nothing to suggest that MPV owners will be able to move those rates higher any time soon.

That said, the continued concern of shippers regarding the reliability of car-riers is only exacerbated by news from the bulk carrier sector of another bank-ruptcy. It is our opinion, at the very start of the year, that 2015 will show little improvement on 2014, but there is poten-tial for improvement over 2016. BB

The above article is taken from the lat-est Drewry Multipurpose Shipping Market Review and Forecast. A year’s subscription is priced at £2,295, which includes the annual market review and forecast report, to be published March 16, supplemented by three quarterly updates. All enquiries to [email protected]

SUGGESTED DEVELOPMENT OF GENERAL CARGO MARKET (MILLION TONNES)

2,000

1,600

1,200

800

400

0

2010 2011 2012 2013 2014 2015 2016total container cargo non-container/general cargo


Engineering contractors in the forefront of China’s ongoing infrastructure build-out – a modernization effort famous for

bullet trains and skyscrapers – have also been busy hammering down overseas port, road and rail projects with remark-able success.

These state-run engineering, pro-curement and construction firms, or EPCs, backed by the Beijing govern-ment’s soft-power diplomacy and state

CHINA’S ‘PEARLS’ UNSTRUNG

Shelved Port City Poses Sri Lanka Dilemma

By Eric Johnson banks, have worked on a wide range of infrastructure in emerging Africa, East Europe and Southeast Asia over the past decade. For example, Ribbons were cut last year for a 1.4-kilometer highway bridge in Serbia, and a 338-megawatt hydroelectric power plant in Cambodia.

No wonder, then, that the Chinese EPC sector was taken aback in January by a surprise decision to shelve a major port construction project in Colombo, the capital of Sri Lanka, on orders from that island-nation’s newly installed government.

The decision snapped what had been

an impressive series of overseas success stories for Chinese EPCs, especially those working on ports and related projects in southern Asia. Not only was the contractor left in the lurch, but the Chinese government and state companies may have been forced to re-evaluate their overall strategy for port projects in several countries ringing the Indian Ocean.

China’s interest in Sri Lanka stems from what’s often called Beijing’s “string of pearls” plan to extend commercial – and some say military – influence via sea ports stretching from southeastern

Gwadar, Pakistan

Chittagong, Bangladesh

Kyaukphyu, Myanmar

Bagamoyo, Tanzania (proposed)

SRI LANKA’S PORTS

Colombo

Trincomalee

Oluwil

Hambantota

Point Pedro

KKS

Galle

port news



Reuters news agency said the multi-year project would cost some US$10 billion.

Port CityColombo’s now-frozen plan for

what’s called Port City was unveiled in early 2014. China Communications Construction Co. Ltd., the Chinese state-run and Hong Kong Stock Exchange-listed contractor, was to lead the project, starting with a major sea reclamation phase. China Communica-tions was then to build US$1.5 billion worth of ship berths as well as an urban complex on about 200 hectares. Port City would be Sri Lanka’s largest-ever foreign investment.

The plan calls for three, 58-hectare container terminals with 470-meter-wide yards for stacking rows of stacked containers, according to the Sri Lanka Ports Authority and an artist rendition

released by China Communications. Apartments for a quarter-million people, office buildings and recreation facilities would be built nearby.

The horseshoe-shaped facility with about 6,800 meters of breakwater and one side open to the sea, would provide protective berths for ships not far from the city’s existing port. Today’s Port of Colombo handles breakbulk cargo and roll-on, roll-off ships, but focuses on the container business, servicing box ships at two terminals.

The Port City deal appeared to be sealed last September when Chinese President Xi Jinping and then-President Mahinda Rajapaksa met in Colombo to cut a ribbon, symbolically launching the project. Signing the financial contract were officials from the state-run port operator China Merchants Holdings and the Sri Lanka Ports Authority.

China to eastern Africa.“Pearls” already set in place include

Pakistan’s third-largest port Gwadar, which was built by a Chinese EPC and opened in 2005. More recently, China helped upgrade the Chittagong port in Bangladesh, which someday may become a trading hub linking southwest China and the Indian Ocean.

The newest pearl in China’s long string is a deepwater port in Kyaukphyu, Myanmar, that opened in February. Its biggest draw is an oil terminal built to accommodate tankers supplying a recently completed, Chinese-owned pipeline. The pipeline pumps crude northward from the sea to China’s Yun-nan Province.

Later this year, work was expected to begin on a China-financed port devel-opment in Bagamoyo, Tanzania, on the Indian Ocean’s western edge. The

port news


Government leaders at the time touted the deal as a win-win benefiting both countries: A Chinese EPC would do the work through a Chinese-financed contract, and Sri Lanka would get a modern port with greater access to inter-national trade as well as a trendy urban neighborhood overlooking the sea.

But the project screeched to a halt after Rajapaksa lost a presidential elec-tion in January. Within weeks of taking office, the administration of newly elected President Maithripala Sirisena decided to take a closer look at the port project’s legalities and possible environ-mental hazards.

The inspection was continuing as this issue of Breakbulk went to press. One question revolved around whether the deal to lease some sea-reclaimed property to China Communications was valid in light of a Sri Lankan law that bars foreign control of land.

Colombo Port City would be the second China-built-and-financed port construction project in Sri Lanka. The first got under way in 2008 when China

Rendering of China Communications Construction’s Port City development. / Credit: China Communications Construction Co. Ltd.

Communications crews with Chinese financing started modernizing the port of Hambatota, about 220 kilometers east of Colombo on the island-nation’s south-east shore. An oil terminal has been built as part of the ongoing project, which is to be completed later this year.

The Chinese government has defended its Sri Lankan port projects against charges it wants to challenge nearby India militarily by basing naval ships at Hambantota and Colombo. Commerce and bilateral trade are the key drivers, Beijing argues. The military charges were fueled in 2013, however, when presidents Rajapaksa and Xi met in Beijing and released a communique say-ing their nations would “deepen defense cooperation.” And on at least two occa-sions last year, Chinese submarines raised eyebrows in India by docking tem-porarily at Colombo.

Ever since Sirisena defeated Raj-apaksa in the election, Sri Lanka-China relations have been cast in a new light, with a focus on the future of the Colombo port project.

When Sri Lankan parliament mem-bers recently asked for a port project update, Prime Minister Ranil Wick-remesinghe offered this explanation of the government’s stand: “All the rel-evant activities to the Port City were not done in a transparent manner,” he said, according to a government website. “Sev-eral lawful methods were not adhered to. The agreement with regard to the proj-ect was signed without cabinet approval. In addition to that, there was no proper response to the allegations that the proper environment impact assessment reports have not been obtained.”

The port project’s status was expected to be on the table at a meeting between Sirisena and Xi scheduled for March in Beijing.

China Communications officials haven’t commented on the situation. But Beijing authorities remain hopeful. Ministry of Foreign Affairs spokesman Hong Lei said at a February press con-ference that in China’s eyes the project is still alive, having already been “fully approved” by Sri Lanka. BB


[ GULF COAST LOGISTICS | 2015 ]

ADVERTISEMENT

GULF COAST LOGISTICS

2015

Cre

dit:

Por

t of

Hou

ston

Aut

horit

y


ADVERTISEMENT


contents

50 NORDANA52 BBC54 HOEGH56 PORT OF NEW ORLEANS58 KOG60 PORT OF BATON ROUGE62 PORT OF PORT ARTHUR64 ALABAMA STATE PORT AUTHORITY66 PORT OF LAKE CHARLES68 TUSCOR LLOYDS

MANAGING DIRECTORAlli McEntyre / [email protected]

ACCOUNT MANAGERKathleen Pinson / [email protected]

EDITORIAL DIRECTOR Gary Burrows

DESIGNER Catherine Dorrough

HEADQUARTERSClifton HouseLower Fitzwilliam StreetDublin 2 Ireland

Cre

dit:

Por

t of

Bat

on R

oug

e

2015 EVENT DATES

March 2016China

October 2-5, 2015Port of Houston, TX, USA

May 18-21, 2015Port of Antwerp, Belgium

17-18 November 2015Istanbul, TurkeyE U R A S I A CO N G R E S S

1-2 December 2015São Paulo, Brasil

February 2016South Africa

`

TO REGISTER OR RESERVE A BOOTH, VISIT

www.breakbulk.com »

NETWORK WITH BREAKBULK & PROJECT CARGO LOGISTICIANS FROM AROUND THE WORLD.

25-28 October 2015Abu Dhabi, UAE


ADVERTISEMENT


NORDANA ADVANCING TO MEET CHANGING DEMANDS

and the service continued under Danish management, but the name and the values remain as strong as ever. We are very proud of our heritage and fly the swallow-tailed Danish flag – the Dannebrog – with great pride.

The US Gulf Coast is one of Nordana’s important trading areas and a direct liner service from USA to the Mediterranean was implemented in 1961. Since then Nordana has constantly developed and improved our services, in order to bring our customers business’ ahead and thus this gateway to Europe is still going strong. To further strengthen our position, we are in the process of moving to new modern premises in Houston. Refurbishment of the new offices has commenced and we expect the move-in to take place during April 2015.

Nordana recognises that continuous advancement is essential in order to meet changing demands and needs both from our customers and from the shipping industry

Nordana A/S - part of Weco Group - is a privately owned international shipping company with headquarters in the North

of Copenhagen, Denmark. With more than 130 years’ experience, we operate owned and chartered vessels in both liner services and worldwide project cargo transports.

NORDANA LINER DIVISION operates regular multipurpose/RoRo services encompassing 4 main trade lines between the Americas and the Mediter-ranean.

NORDANA PROJECT DIVISION operates its own modern fleet of special-ized project ships worldwide, as well as managing chartered tonnage for full flexibil-ity in lifting any cargo challenge.

The name Nordana is taken from its NORwegian and DANish background. The service started in 1957 as a joint venture between Norwegian Fearnley & Eger and Danish DFDS. F & E decided to withdraw

For further details please visit our website:

www.nordana.com [ [

in general. We acknowledge the impor-tance of investing in our fleet and are thus upgrading present fleet and engaging in an extensive newbuilding program.

The Liner Division’s fleet renewal commenced in June 2014, when the Green Star 3 Design Italian built MV Wedells-borg initiated her inaugural voyage in the Mediterranean - Americas service. The MV Williamsborg entered the same service in July 2014 and will be joined by the MV Wil-helmsborg in Q2 2015. This upgrade enables us to offer larger and faster vessels that run at even more precise schedules while at the same time optimizing fuel consumption and keeping emissions to a minimum.

Nordana Project Division, an indepen-dent division within Nordana, has likewise improved their fleet by chartering in several 12000 ton tweendeckers on long term basis. In addition 14 newbuildings will be delivered over the next 2 years as from the beginning of 2015, including 8 Great Dane Mark II vessels with a lifting capac-ity up to 500 tonnes. 21st February 2015 the Nordana Sky, the first of a series of 6 Symphony Class newbuildings, was launched and christened at a ceremony in Leer. The spectacular side launch can be viewed at Nordana’s LinkedIn profile.

With a vast amount of expertise in our local offices in Denmark, the USA, Thailand and Singapore combined with the ongoing renewal of our fleet to fully equipped, envi-ronmentally friendly, state of the art vessels, we are confident that Nordana is able to efficiently transport all types of cargo– both present day and in many years to come.

Bring us a challenge so we may rise to the occasion…….

Nordana Sky side launch at Leer


ADVERTISEMENT


O ver the past decades, the world of break-bulk and project shipping has grown remarkably and further established its own expert niche in the global shipping business. Together with their

customers and business partners, BBC Chartering sup-ported the development of this expert niche globally also with a strong focus on U.S. Gulf activities.

Today, BBC Chartering is a global expert for engineered transports and amongst the most trusted names in the industry. The carrier is known for arranging engineered transports and best-in-class shipping performance through a modern fleet of currently 150 multipurpose and heavy lift vessels.

Not only limited to the U.S. Gulf, BBC Chartering supports many of the world’s most prestigious projects, operates dedicated liner services, works on improving regional shipping services, and now improves their port handling, too.

RECENT PROJECT DELIVERIES Amongst the most visible projects recently was a loop

reactor for the giant CP ethane cracker facility in Baytown, Texas. Fabricated in South Korea the large reactor was shipped onboard the BBC Coral, a 14,800dwt heavy lift ves-sel, to Freeport, Texas in October 2014.

In January 2015, the Port of Charleston Authority recorded one of its heaviest energy project moves to date, a 1.5 million pound (680mt) Westinghouse Electric Com-pany steam generator for the South Carolina Electric & Gas Company nuclear power plant expansion near Columbia, SC. The generator was transported by the BBC Aquama-rine, another BBC Chartering heavy lift vessel.

DEDICATED LINER SERVICESWith its BBC AMERICANA LINE, the carrier offers a

monthly sailing with vessels calling Brazil and Argentina, load-ing primarily out of Houston. The service operates roundtrip with dedicated vessels ranging in size from 6,000 dwat to 17,000 dwat and with lifting capabilities of up to 240 mts.

With its ANDINO EXPRESS LINE, BBC operates roundtrips from the US Gulf to Ecuador, Peru and Chile every 14 days and plays a major role in the development of the construction and mining industries.

The new BBC GULF LINE service utilizes vessels that

PREMIER PROJECTS SERVICES – FROM THE GULF AND FOR THE GULF

can carry up to 20,000 dwat and have the ability to lift up to 700 mts. Customers can expect two voyages a month leaving US Gulf ports, Veracruz, Houston and Mobile. The service calls major ports in the Arabian Gulf including Dam-man, Doha, Dubai, Jebel Ali, Muscat and Shuwaikh.

The BBC TRANS-PACIFIC SERVICE connects Asia and the United States on a monthly basis. With the introduction of the Trans-Pacific Service, loading ports are Shanghai, Masan, Kobe and Yokohama and discharge ports are Long Beach (West Coast), Charleston and Houston.

BBC Chartering offers the flexibility to call any required port en-route on an inducement basis. The same flexibility applies to the procured tonnage, in case more cargo or lift-ing capacity is needed.

REGIONAL SERVICES Caytrans BBC provides weekly sailings between the Gulf

of Mexico, North Coast of South America and the Carib-bean. Specializing in project and heavy lift cargoes, Caytrans BBC is a key player in the steel and bulk cargo market. With a shallow draft, the four dedicated vessels operating this line also offer the unique ability to deliver to some of the smaller regional ports in the area, which can be called on an inducement basis.

DEDICATED PROJECT TERMINALBBC Chartering has observed a constant growth in its

US-based business, as well as record numbers for port calls in Houston. In more than 250 loading and unloading and operations in the past 12 months, BBC vessels spent over 800 days in the port of Houston. This was reason enough for BBC Chartering to look into options to consolidate and improve economics and service quality which should also benefit the carrier’s American and global clients.

To that end, Manchester Terminal in the port of Houston seemed to be the right fit. It offers a unique com-bination of services: warehousing, break bulk and container facilities, light manufacturing and assembly operations if required. BBC is pleased to announce that Manchester Terminal is the carrier’s new dedicated project terminal in North America. Managed through Gulfstream Marine, BBC vessels and their customers can now enjoy priority berthing and 24/7 serviceability in Houston.


ADVERTISEMENT


are now 72’ and 80’ in length and custom made to accommodate longer cargo. They also have rails in the bed of the trailers making them even suitable for rail cars and locomotives. Oskar Orstadius continues: “The rails offer safe and smooth transportation of trains and trams as it enables cargo operation without lifting the unit. It also offers a more cost efficient solution as there is no need to hire cranes for the operation.” Höegh Autoliners continues to invest in specialised equipment to accommodate for even bigger and heavier cargo suitable for the New Horizon vessels.

LOOKING FORWARDHöegh Autoliners are very excited about what the future

holds as the company expands and provides new levels of service to its customers. New markets are likely to evolve and put new requirements to the trade networks. Höegh Autoliners already has presence on all continents and offers a global trade network. Now with a dedicated project cargo team, investments in equip-ment and the world’s largest PCTCs soon in its fleet, Höegh Autoliners is ready to wel-come new customers with even bigger and heavier cargo.

Höegh Autoliners is a leading global provider of Ro/Ro transportation services. This year, the company takes a new step in its investments in the breakbulk market, introducing a new generation of vessels with improved

capabilities for carrying high and heavy cargo. This is only one of the activities Höegh Autoliners is taking to improve its services to the break bulk market where new equipment and a dedicated organizational set-up are other significant investments.

By 2016, Höegh Autoliners will have six of the New Horizon vessels in its fleet, operating within the company’s global trade network. The vessels will be of the Post Panamax size and offer ramp capacity up to 375 tonnes and 6.5 meter door opening height. With five out of 14 decks being liftable, the vessels will enable loading of a wide variety of cargo and offer high flexibility in trade.

Besides offering excellent cargo operation opportunities the New Horizon vessels can also pride themselves with a better environmental footprint compared to standard car carriers and the vessel model is given DNVGL’s class notification “CLEAN” for cleaner design.

DEDICATED RESOURCESTo further enhance the company’s capabilities in the break-

bulk segment, Höegh Autoliners last year launched a new global breakbulk and project cargo group. Oskar Orstadius, Head of Breakbulk segment says: “Our team exclusively service those accounts that move breakbulk and project cargoes. Everyone in the team has long experience in this cargo segment and we are spread across the key breakbulk markets, ensuring personal and local service to customers.”

NEW EQUIPMENTHöegh Autoliners did last year complete the implementation

of a program to introduce two new sizes of mafis or roll trailers to add to the traditional 20’, 40’ and 62’ sizes. The newest roll trailers

BIG JUST GOT BIGGER

www.hoeghautoliners.com[ [

http://www.hoeghautoliners.com


ADVERTISEMENT


T he Port of New Orleans is a deep-draft mul-tipurpose port at the center of the world’s busiest port system — Louisiana’s Lower Mississippi River. Connected to major inland

markets and Canada via 14,500 miles (23,335 kilo-meters) of navigable waterways, six class I railroads and the interstate highway system, the Port of New Orleans is the ideal gateway for containers, chemicals, coffee, steel, project cargo, natural rubber, forest products, manufactured goods and more.

Gaining recognition for our premium connectivity, world-class customer service and strategic location, the Port was named Business Facilities’ top Logistics Leader in 2013 and Port Operator of the Year by Lloyd’s List in its 2014 top North American Maritime Companies.

In 2014 cargo worked at the Port totaled 8.37 mil-lion tons, the highest total since 2000. Imported steel led the growth, as imported iron and steel rose 101.6 percent in the 12-month-period to 3.54 million tons.

With the influx of auto manufacturers into Mexico and the Port of New Orleans’ proximity to Central America, the Port sees the opportunity for steel in this market. The Port is looking into the possibility of a short sea shipping service to/from Mexico to capitalize on steel and automobile related cargo.

The Port and its tenants and operators are con-stantly hunting for value-added services to enhance Louisiana’s natural resources that are already exported via the Port. In 2014 TCI Plastics noted a trend of Lou-isiana-made plastic resins being railed to out of state ports and exported there. In the wake of this infor-mation TCI decided to invest $36.5 million to grow its mega-plastics district, capturing cargo otherwise bound for out of state export.

Currently TCI receives rail cars filled with poly-ethylene resin pellets. The material is transferred by vacuum into silos, then bagged, palletized, wrapped in plastic, loaded and exported. By adding the plastic film-manufacturing component, TCI is doing its part to

create new value-added manufacturing at the Port of New Orleans. TCI’s expansion will produce 600 addi-tional cars per month to its polyethylene operation.

With the expected increase in exported plastics and the large capacity of barge transportation, the Port is considering shipping the 1-ton super sacks of PVC resin by barge.

Due to the historic industrial expansions and new construction both on the Lower Mississippi River and along the Gulf Coast, Port of New Orleans stevedores are experiencing a real boost in project cargo. Ter-minal operators Coastal Cargo, Empire Stevedoring, New Orleans Cold Stage, Ports America and Seaonus Stevedoring-New Orleans offer a wealth of experi-ence and decades of commitment to the Port of New Orleans shippers.

Louisiana, the nation’s number one producer of crude oil and the second-highest producer of natural gas, is attracting mega projects. In the past several years, $80 billion in capital infrastructure invest-ments have been announced in Louisiana, including an estimated $21 billion investment by South Africa-based Sasol to build an ethane cracker as well as an integrated gas to liquid (GTL) facility. Several other projects coming to Louisiana boast a capital invest-ment of more than $1 billion each, including a $2.1 billion expansion of CF Industries’ Louisiana nitrogen complex in Donaldsonville and a $1.2 billion methanol manufacturing plant in Plaquemines Parish by Castle-ton Commodities International.

In 2015, the Port completed two of the heaviest project cargo lifts in its history successfully discharging a 718-ton, absorption tower and a 790-ton ammonia converter from ship-to-barge.

“Shippers of such goods as steel, nonferrous metals, forest products and rubber, as well as heavy lift project cargo, choose the Port of New Orleans because we offer logistical advantages unlike any other port in the world,” says Gary LaGrange, President and CEO of the Port of New Orleans

LOGISTICAL ADVANTAGES UNLIKE ANY OTHER PORT IN THE WORLD

OUR

RUN DEEP.CAPABILITIES

In New Orleans, we’re known for letting the good times roll.

But to our customers, our capabilities are as world-class as our food and music.

The Port of New Orleans is America’s most intermodal port.

We connect you to major inland markets and Canada via 14,500 miles

of waterways, all six Class-I railways, 50 ocean carriers, 16 barge lines and 75 truck lines.

The Clarence Henry Truckway, a dedicated two-lane roadway

on Port property, makes fast transit times even faster.

The Port also offers near-dock rail and ship-to-barge services. Looking forward,

the Port of New Orleans is always innovating and expanding,

so you can comfortably do business here.

You’ll be glad you came.

portno.com


ADVERTISEMENT


K OG TRANSPORT, INC. is an International Freight Forwarder, active mainly in the Project Freight Forwarding Field. In North America, they have been established since 1981, and

effected logistics and forwarding services for numerous projects for the Oil and Gas, Cement, Power and Steel Industries.

Among others, they have been involved for many years in the shipment of Air Columns, Heat Exchangers, Cold Boxes, and related cargoes for the chemical pro-cessing industry.

Presently, KOG is involved in two major Oil and Gas Projects in the U.S. Gulf Area with unit weights rang-ing from 100MT to 800MT each, with planning that has taken over two years.

KOG understands the intricacies in the planning and execution of such mega projects, and are well equipped to handle their client’s needs, as required.

Below are a few pictures of KOG’s project cargo handling in the U.S. Gulf Area.

KOG is a specialized Project Forwarder with offices in over 20 countries worldwide.

KOG WELL EQUIPPED TO HANDLE CLIENT NEEDS

USA: KOG TRANSPORT, INC.299 Broadway, Suite 1815New York, NY 10007Contact: Juergen OsmersTelephone: + 1 212 346 9800Telefax: + 1 212 748 6133Email: josmers@ kogusa.com

SWITZERLAND: KOG TRANSPORT, AGZugerstrasse 1CH-6330Cham, SwitzerlandContact: Rolf GublerTelephone: + 41 (0) 41 781 1510Telefax: + 41 (0) 41 781 1530Email: rgubler@ kogzug.ch

JAPAN: KOG JAPAN KKWBG Marive West 23rd Floor2-6 Nakase, Mihama-ku, Chiba-shiChiba 261-7123, JapanContact: Masahiro KosakaTelephone: + 81 43 297 3155Telefax: + 81 43 297 3166Email: mkosaka@ kog-japan.co.jp

Your Worldwide ProjectCoordination Centers:

Truly a Project Forwarder, we work with our clients from feasibility to execution, no matter where thecargo originates or destined, specializing in North America, Europe, The Middle and Far East.

BIG ENOUGH TO HANDLE, SMALL ENOUGH TO CARE

BB.KOG.9.11.14.indd 1 9/11/14 8:18 PM


ADVERTISEMENT


R anked 9th nationally in total tonnage, there’s a lot of “new” these days at the deepwater Port of Greater Baton Rouge. For example, say port officials, NEW COMPANIES locating

at the port, NEW INVESTMENT in infrastructure, and NEW LAND AVAILABLE for development.

Highlights of these new developments include:

Genesis Energy, L.P. is constructing a $150 million crude oil, intermediates and refined products import/export terminal, expanding that company’s commitment to providing efficient mainstream supply and logistics services to the region.

Drax Biomass, one of Europe’s biggest renewable electricity generators, has launched its $30 million wood pellet storage and transfer operation. The storage facilities have the capacity to store approximately 80,000 metric tons of wood pellets. Each storage dome is approximately 200 feet in diameter by 145 feet tall including the mechanical housing unit atop the structure.

Stupp Coatings, LLC has constructed a facility on 24 acres at the Baton Rouge port’s Inland Rivers Marine Terminal to oper-ate concrete weight pipeline coating services for the oil and gas industry. The site is service by rail, truck and barge with access to the Gulf Intracoastal Waterway.

THE LATEST “NEW” FROM THE PORT OF GREATER BATON ROUGE

Louis Dreyfus Commodities is successfully operating its new, state-of-the-art grain dock and export grain elevator.

Westway Terminals, LLC has completed its $3.5 million expan-sion at the port’s liquid bulk terminal.

Over $10 million in improvements have been made to the port’s rail lines and infrastructure.

Acreage at the port’s Inland Rivers Marine Terminal is available for development, with access to the Gulf Intracoastal Waterway.

Recent reports show that cargo worked at the Port of Greater Baton Rouge’s public docks in 2014 more than doubled the amount handled in 2013, according to year-end statistics from the port. In 2014, the Port of Greater Baton Rouge handled more than 9.2 million tons of cargo, an increase of more than 100% over the 4.2 million tons that passed through in 2013.

For the more information, officials at Louisiana’s capital city port suggest

giving them a call to ask, “What’s new?” Contact Greg Johnson, Director of Business

Development, at 225.342.1660.[ [

•

•

•

•

•

•

•

ADVERTISEMENT


already know - that the port of choice for all your multipurpose cargo is … THE PORT OF PORT ARTHUR.

and additional forty acres ready for development is available.

The Terminal has 3400’ of Berthing plus an 82’ RO/RO dock enables efficient multi-modal access via water, rail and highway. Add two natural gas generators plus a 500 gallon diesel generator and you have uninterrupted port operations.

On the horizon is expanding berthing by 600’ and additional 6,000 ‘of rail track termi-nal capacity. Please call Floyd or Orlando (409) 983-2011 and find out what shippers

T he Port of Port Arthur has carved itself a niche as a MULTIPUR-POSE PORT.

The Port of Port Arthur is North America’s most modern and ultimate direct transfer facility for Inter-national Shipping. Located 19 miles inland from the Gulf of Mexico and directly on the Gulf Intracoastal Waterway, less than two hours from sea buoy to dock enables vessel owners to quickly work cargo.

The Port is positioned to effectively handle any type of cargo from steel, pipe, forest products, project and military to name a few. Seventeen acres (68,795 sq. meters) of asphalted Open Storage space equipped with CCTV’s with DVR backup

THE PORT OF CHOICE FOR ALL YOUR MULTIPURPOSE CARGO

@RLTransportRLTransportcaRLTCAR&L TRANSPORT

FOLLOW US:


ADVERTISEMENT


Alabama State Port Authoritywww.asdd.com

THE PORT OF MOBILE

WHERE Southern comfort

ANDGLOBAL TRADE collide.

AND

frozen poultry, and oversized / heavy lift car-goes. Since 2000, the Authority has invested nearly $800 million in terminal infrastructure and rail improvements. In Fiscal Year 2014, the Authority handled a record 29 million tons of cargo through its facilities. Export metallurgical coal posted a record 13.7 million tons handled. Steel topped just over 5 million tons making Mobile the second largest steel port in the nation. Our container terminal volumes continue to post double digit growth since opening the facility in 2008. To comple-ment investments at the container terminal, the Port Authority is currently constructing a $36 million, Phase I Intermodal Container Transfer Facility (ICTF) providing by year end 2015 containerized cargo shippers via the Port of Mobile and 5 Class I railroads expanded market access into the Southeast, Midwest, and the Ohio and Tennessee River valleys. The Port Authority’s newest steel coil handling facility started operations in December 2014. This $36 million, Phase I facil-ity delivers a 178,200 sq. ft. warehouse with three fifty (50T) ton overhead bridge cranes and 168,000 of open storage yard. Another planned improvement at the port is an auto-motive terminal. The Phase I $65 million RO/RO terminal is a one to three year capital improvement program, and the Authority is currently seeking expressions of interests from automotive logistics providers.

The Alabama State Port Authority’s ter-minals connect to 2 interstate systems (I-10 and I-65) and 5 Class I railroads (CSX, Cana-dian National, Burlington Northern Santa Fe/Alabama & Gulf Coast Railroad), Norfolk Southern and Kansas City Southern), and is home to the C.G. Railway, providing water-borne rail service every four days to Mexico. The Authority’s terminals also connect to nearly 15,000 miles of inland and Intracoastal waterways providing low cost water access to ports along the Gulf of Mexico, the Tennes-see, the Ohio, and Upper Mississippi Rivers. The transportation assets and strong commu-nity support make the Port of Mobile one of the nation’s fastest growing ports.

T he Port of Mobile is one of the nation’s largest seaports in overall cargo volume representing nearly 60 million tons annually. The full service, public seaport terminals are owned by the Alabama State Port Authority. The public terminals handle containerized, breakbulk, dry and liquid bulk,

PORT OF MOBILE: ONE OF THE FASTEST GROWING PORTS IN THE U.S.

[ [For more information, go to www.asdd.com


ADVERTISEMENT


Go with the flow.Breakbulk cargo flows through the Port of Lake Charles with the greatest of ease.

As the nation’s 13th-busiest port district, the Port of Lake Charles flows cargo rapidly and efficiently, from arrival to storage to departure.

The Port’s new dock and rail facilities mean increased capability for handling heavy-lift project cargo and large unit trains.

Whatever your cargo, the Port of Lake Charles can make it flow smoothly toward its destination.

Lake Charles, Louisianawww.portlc.com

337-439-3661

In Southwest Louisiana, the Port of Lake Charles and its dozens of industrial facili-ties are greater than the sum of their parts. The Port is currently ranked as the 13th-busiest seaport in the U.S.—based on cargo tonnage—by the U.S. Army Corps of Engineers, and between its strategic location on the Calcasieu Ship Chan-

THE PORT OF LAKE CHARLES:GATEWAY TO A GLOBAL ECONOMY

[ [For more information on the Port of Lake Charles, call 337-439-3661 or visit

www.portlc.com.

nel and its gravitational grip on economic development, the Port of Lake Charles acts as steward to America’s energy corridor.

The Port of Lake Charles encompasses 203 square miles of prime channelside real estate. Over 54 million tons of breakbulk and bulk cargo are transported annually on the channel, including forest materials, alu-minum ingots, grains, rice, petroleum and petroleum products, frac sand, and heavy-lift project cargos.

The Channel begins in the Gulf of Mex-ico 32 miles from landfall and extends an additional 36 miles inland to Lake Charles in Calcasieu Parish, and it is the conduit for 7.5 percent of the nation’s daily fuel consumption, which comes from refineries along the channel.

With over $80 billion in capital invest-ments announced for Lake Charles and Southwest Louisiana over the next decade, the Port of Lake Charles has expanded its heavy-lift and breakbulk cargo capac-ity while reinforcing its core services for tenant companies. Much of the economic boom, as well as current area growth, are fueled by facilities that rely on the Port and channel.

The Port of Lake Charles is investing $190 million in capital improvements to grow cargo-handling capabilities, includ-ing new dock and storage facilities. IFG Holdings, a tenant company, developed an expansive grain elevator system that works with the Port’s innovative two-loop track system, allowing unit trains with up to 120 rail cars to be unloaded and processed for shipping. Together they substantially increase the Port’s cargo capacity, handling speed, and overall efficiency.

The Port of Lake Charles is governed by a seven-member board of commissioners, which oversees two marine terminals, over 4,000 acres of property zoned for industrial use, and an industrial park.

http://www.portlc.com

REGISTER NOW AT www.breakbulk.com/europe » USE PROMO CODE BBE09 TO ACTIVATE 10% DISCOUNT

18-21 May 2015Antwerp ExpoPort of Antwerp, Belgium

WE’RE CELEBRATING OUR FIRST DECADE... JOIN US!

NETWORKINGUnparallelednetworking withindustry experts.

EDUCATIONExpert trainersfocused onadvancing yourskills.

OPPORTUNITYStart newbusinessrelationships,find newsolutions.

Project Cargo - New Opportunities, New Strategies!

We’re celebrating our 10 year anniversary with the Port of Antwerp. Ten years of Breakbulk Europe’s commitment to the success and advancement of traditional breakbulk and project cargo logistics professionals. It won’t be a celebration without you!

Breakbulk Europe 2015 will be

the largest Breakbulk event to date with 6,500 delegates and over 300 Exhibitors and Sponsors expected.

Special parties and celebrations plus four days focused on career-advancing workshops and unparalleled networking opportunities with project cargo experts from around the world.

BBeurope_printV6.indd 1 3/23/2015 11:11:06 AM


ADVERTISEMENT


D ubai, with 8,26 millions of inhabitants, is one of the most important epicenters of the world economy. We are

talking about an area that leads the eco-nomic development of the Gulf countries through impressive projects and that has become the neuralgic center of the world business and tourism. Dubai also enjoys of an strategic location, good sea and air connections, efficiency in its ports and airports, and low warehousing and free trade zone costs, many good reasons that enhance Dubai’s position as the world’s leading trading hub.

Taking advantage of the business oppor-tunities offered by the country, Tuscor

TUSCOR LLOYDS AND THE MIDDLE EAST, GROWTH STRATEGIES

Lloyds had also set its eyes in the Gulf countries where its first participation was in the project cargo division several years ago. With an experienced Project Management Team, Tuscor Lloyds was asked to move an oversized cargo to the Middle East for a major construction project. This was the company’s first incursion in the region was only the first of several that were completed within the following years. Nowadays, with more experience and an increasing network of trusted agents in the area Tuscor Lloyds continues to work to increase its participa-tion in the Gulf Countries in the Project Cargo and Heavy Lift division.

In another hand, with an important trajectory as a logistic partner part of the

supply chains of several alimentary compa-nies around the world, last February, Tuscor Lloyds visited the international exhibition Gulfood, as a business strategy to continue increasing its business within this industry.

The English company is strongly bet-ting for the traffic with the Middle East, currently they have the advantage of col-laborating with the main world carriers to be able to offer the most competitive rates, and they also have a wide range of agents with extended experience of busi-ness in the area. All these indispensable qualities are allowing Tuscor Lloyds slow but safe introduction in a market that, without doubt, will continue growing in the next years.


Heavy-lift accomplishments are adding up fast in China as the world’s largest nuclear power plant construction

program rolls on.Some 26 nuclear power plant units

were under construction and 22 units were operating at 13 sites around the country at the end of 2014, according to state media. Cranes and crews were busy with complex projects from transporting reactor vessels by ship to fitting 140-ton steel domes atop reactor containment buildings.

In late November, according to China National Nuclear Corp. (CNNC), one of the country’s nuclear plant-builders, the first made-in-China AP1000 reactor vessel was successfully delivered to one of two units under construction at the Sanmen site in the central-east coastal city of Taizhou.

A bulk cargo ship was used to haul the reactor vessel about 800 miles to Taizhou from the port of Dalian, where it had been manufactured by China First Heavy Industries through an agreement with the vessel’s designer, Westing-house Electric. The reactor vessel will be installed at the Sanmen 2 plant, while the Sanmen 1 plant is getting an AP1000

manufactured in South Korea by Doosan Heavy Industries.

It’s a goal of China to design, manufacture and build its own nuclear reactors at home and abroad. Installing the AP1000 at Sanmen 2 “has played a positive role in pushing forward” this national strategy, said a press release from state-run CNNC.

In another heavy-lift development, CNNC’s Jiangsu Nuclear Power Corp. said a 530-ton-capacity crane was successfully tested in early December for use in mov-ing Russian-made power plant equipment at the Tianwan 3 and 4 units. The units are under construction near the coastal city of Lianyungang. The oceanside crane is designed to lift reactor pressure vessels, steam generators and other equipment from ships onto the plant site.

Officials also announced the comple-tion of all testing for a reactor containment building dome-lifting and installation project slated for the Tianwan units, hint-ing that the project could begin soon.

Tianwan is being built under a joint venture between Jiangsu Nuclear and the Atomenergoproekt subsidiary of Russia’s Rosatom. Tianwan units 1 and 2 are already running.

China’s nuclear power program has been surging since the government lifted a one-year moratorium in the wake of the 2011 Fukushima disaster in Japan. The government wants 15 percent of the nation’s energy to come from non-fossil fuel sources by 2020, with about half of that amount generated by nuclear plants.

Moreover, CNNC and China Gen-eral Nuclear Power, which in December raised more than US$3.1 billion on the Hong Kong Stock Exchange, have been working with Chinese EPCs such as Dongfeng Electric to bid for plant con-tracts abroad with all-Chinese parts.

But most of the action is on the mainland. In late 2014, two new reactors started commercial operations in China: the Fangjiashan 1 plant near Shanghai and Fuqing 1 north of Hong Kong. A second unit is under construction at Fangjianshan, and three others are being built at Fuqing.

The next plant to come online could be the Ningde 3 unit on the sea north of Hong Kong. CGNC said it had started pre-operations testing at the plant in October. Ningde 1 and 2 are already operating, and Ningde 4 is under construction. BB

The twin-unit Sanmen nuclear power station under construction near Taizhou.

Heavy Lifting Continues for Plant Construction Program By Eric Johnson

energy update

CHINA NUCLEAR PUSHES FORWARD

C orporatization of Indian-government-run seaports is expected to gather momentum in the coming few months,

unmindful of veiled threats issued by nearly a half-dozen trade unions opposed to the move.

Only one of the 13 seaports, Ennore Seaport near Chennai, has been priva-tized thus far, while the remaining seaports are managed by trusts. Even the two new seaports under construction at Dugarajapatnam in Andhra Pradesh and at Sagar Island in West Bengal will be corporations, and they will be registered under the Indian Companies Act.

The 12 seaports managed by trusts

But Labor Opposes Corporatization Move

By V L Srinivasan

(see box) are registered under the five-decades-old Major Ports Trust (MPT) Act, which has outlived its utility in view of the Indian government and its global-ization and liberal economic policies.

Major trust-operated ports have shown no major growth in cargo traffic over the past four years, in contrast to increases at private ports over the same period. Port utilization at the seaports has been less than 70 percent. Cargo traffic was 555.6 million tonnes for India’s financial year ending March 31, 2014, compared to total annual capacity of 800.5 million tonnes. Performance for port trusts is lagging not only private ports but also minor ports, officials say.

As India plans to expand its sea trade, the government is looking to the private sector for investment to upgrade and develop existing facilities.

The government believes that, with corporate governance structure in place, the ports would have better access to cap-ital markets while management will have greater accountability, autonomy and flexibility, as decision-making will not need to await government approval for all port-related issues. Private operation will also mean port tariffs will be market-driven and productivity will increase.

Nailesh Gandhi, director of Mumbai-based Express Global Logistics Private Ltd., said that corporatization would

INDIA EYESPORT REFORM

Credit: Shutterstock

port focus


BB.PortAuthofAlbany.indd 1 9/9/14 8:50 PM

port focus


ensure accountabil-ity, modernization of ports, quicker expan-sion and improved service levels among other benefits.

The trade unions, however, voiced con-cern that the move would put an end to social responsibility. At a Sept. 15 meeting, five trade unions with combined mem-bership of 48,000 employees threatened to strike if the government went ahead with its corporatization plans.

The port corporatization proposal

was mooted by the then National Demo-cratic Alliance government during its tenure in 1999-2004, but was shelved due to opposition from employees. The Congress Party, which regained power in 2004, could not act, as its survival was depending on the support of the com-munist parties, which opposed any such reforms. Though the Congress Party retained power in 2009, it wilted under pressure from port employees and back-tracked after announcing Kochi port in the South Indian state of Kerala would be corporatized.

A 21-member committee led by Rakesh Mohan, former deputy governor of the Reserve Bank of India (Indian

Central Bank), recommended to the Congress government that the 12 port trusts be transformed into landlord port authorities, and their terminal operations converted into public-sector corporations.

“Incremental improvements, while retaining the essence of the current centralized structure, will not yield the desired benefits. The path recommended for major ports is of corporatization and decentralization,” the report said.

Labor OppositionThe unions, however, feel that hand-

ing over major ports activities to the private sector under the guise of infra-

Nailesh Gandhi

GOA

KolkataSagar Island

Paradip

Visakhapatanam

Port Blair

Tuticorin

Cochin

New Mangalore

Mormugao

Mumbai

Kandla

Jawaharlal Nehru Port

Ennore (Kamarajar Port)

Dugarajapatnam

Chennai

RAJASTHAN

GUJARAT

JAMMU & KASHMIR

PUNJABUTTARAKHAND

UTTAR PRADESH

ARUNACHAL PRADESH

SIKKIM

ASSAM

MADHYA PRADESH

CHHATTISGARH

ANDHRA PRADESH

KARNATAKA

KERALA

TAMIL NADU

JHARKHANDWEST BENGAL

TRIPURA

MEGHALAYA

MIZORAM

MANIPUR

NAGALAND

ODISHA

MAHARASHTRA

TELANGANA

BIHAR

HARYANA

HIMACHAL PRADESH

Machill ipatnam

Nagapattanam

Alappuzha

Panaji

Ratnagiri

Surat

Bharuch

Bhavnagar

Porbander

Veraval

Kakinada

Major ports run as trusts

Company-run ports

Non-major ports

That’s right. In four years, South Carolina doubled its non-container cargo volume. Rolling stock, metals, machinery, project cargo, forest products, and more. We’ve expanded capacity with new on-terminal warehousing and rail infrastructure. Couple that with experienced, productive labor and South Carolina is an ideal fit for whatever you send our way.

breakbulk.scspa.com [email protected] 843-577-8101

9883-01-Port-NonContainerizedCargoAdFP_REV-FINAL.indd 1 9/26/14 12:33 PM

port focus


structure development would not only be detrimental to labor interests, but also against the sovereignty of the country at large.

“It’s not only ill-advised but suicidal,” says Sudhakar Apraj, a trustee of the Mumbai Port Trust and general secre-tary of Mumbai Port Trust Dock and General Employees’ Union.

According to Apraj, privatized ports would not take any interest in the trade and commerce of society’s requirements and the local expectations. The major ports have been intended to serve the country as not-for-profit institutions, but the government never allowed them to function independently with the powers set under the MPT Act, he pointed out.

He questioned the government’s claims that corporatization would generate more revenue for the ports, as the port handling charges collected by the private companies were much higher than government-managed ports. “Corporatization or privatization is not necessary to modernize the ports,” he said.

Apraj added a security angle to the controversy. As the Indian Navy is nestled in most of the major ports, allowing private companies, including multinational firms, to operate would

pose a threat to the country’s safety and integrity, he claims.

The Parliamentary Standing Commit-tee on Transport, Tourism and Culture, in its report submitted to the Rajya Sabha (Upper House in the Indian Parlia-ment) in February 2013, cautioned the government that corporatization would ultimately lead to privatization, which would adversely impact job security of the workers, their wages, working condi-tions as well as post-retirement benefits.

The trade unions have formed a National Coordination Committee of Major Ports Workers’ Federation to launch protests if the government ignores its demands.

‘Herculean Task’Express Global Logistics’ Gandhi

disagreed with the trade unions’ con-cerns. He said the business of trade unions is to ensure fair wages for work-ers, which is good, but they also want quantity and not quality. Trade unions fear they would lose control once the ports are corporatized.

“One of the options for the gov-ernment is to take the workers into confidence by announcing a roadmap on the future of the labor force. It should have a plan to upgrade next generation/family of the current work force, define and share a plan and make them part of the change,” Gandhi added.

Expressing similar views, M.M. Tripathi, vice president (Projects) of ABC India Ltd., said the trade unions were apprehensive, as the ports would be turned into commercial entities and target profit as well as efficiency.

“The seaports will try to become lean and in the process, remove the in-built inefficiencies,” Tripathi said. “This may require bringing in the new technolo-gies such as remote camera inspection of empty containers and remove the obso-lete equipment. This will also require the retraining of a few and change of mindset for all.”

Changing the mindset of workers and removing the animosity towards corporations should be the foremost task of the government, which can tackle the issue by various means like offering

Cargo share for major ports fell from 75 percent to 57 percent in the past 12 years while non-major ports’ share has risen from 25 percent to nearly 43 percent in the same time.

MAJOR, NON-MAJOR PORTS VOLUMES

600

500

400

300

200

100

0

‘01-’02 ‘02-’03 ‘03-’04 ‘04-’05 ‘05-’06 ‘06-’07 ‘07-’08 ‘08-’09 ‘09-’10 ‘10-’11 ‘11-’12 ‘12-’13 ‘13-’14

major ports

non-major ports

In million tonnes / Source: Indian Ports Association

A security guard walks among Hyundai cars parked for export at the port in Chennai. Credit: STRINGER/EPA/Newscom

Sudhakar Apraj


voluntary retirement schemes and pro-duction-linked incentives, he said. Also the surplus staff can always be engaged in extended services such as warehous-ing and equipment maintenance and management.

“Convincing the workers will be a herculean task for any government, as any corporation will rationalize the human resource vis-à-vis productivity,” Tripa-thi said. “This may result in reduction and redeployment of existing work force and mechanization of some of the han-dling and documentation process. In the end it is bound to become a bone of con-tention which will need a deft handling.”

© C

hris

Sta

rnes

R A I L R O A D

PASSENGER | FREIGHT | REAL ESTATE

YOUR TICKETTO GETTING IT DONE

800.321.6518AlaskaRailroad.comBE MOVED.

Alaska Railroad’s Rail/Marine Service is one of the most affordable and efficient ways to transport resources, equipment and supplies. We can ship to and from anywhere in North America with no transloading, and no headaches. | E A S Y. A F F O R D A B L E . E F F I C I E N T.

Any change from the existing bureaucratic, trust-guided ports setup to a profit-driven entity will likely cre-ate an atmosphere of suspicion and questionable intentions. “This requires a structural change and the government should bring in more professionals at the senior level,” he said.

Dismissing the contention of the trade unions that such a move would backfire, Tripathi said: “Corporatiza-tion of the ports is bound to help as we can see smooth functioning of some of the ports located on western coast. They operate in a dynamic atmosphere and understand the requirement of all the stake holders.”

For instance, he said Mundra Port, which was established only 13 years ago, handled 100 million tonnes of cargo in 2014, compared to 87 million tonnes at government-managed Kandla Port, only

60 kilometers away.Similarly, the turnaround time at

Mundra Port was 18 to 20 hours, com-pared to the national average of three to five days in the government-run ports. “This speaks loud and clear about the efficiency of a port working as a com-pany. In fact, most of the new ports established on the western coast, such as Pipavav, Hazira, Essar and Adani, follow the same trend, and are growing at a rate of three to five times,” Tripathi said.

He also said the government should do away with Tariff Authority for Major Ports (TAMP) while implementing the public-private partnership model in development of ports. Tariff regulation has punished their efficiency, hindered business, hurt profits and affected the capacity to invest in improving technolo-gies and service, he said. BB

M.M. Tripathi

Driving around the congested side roads and flyovers that entwine and dissect the many terminals that make up the

port of Tanjung Priok – Indonesia’s national gateway – there is a tangible sense of chaos.

Everything – parking, warehousing, storage areas, houses, offices and the

INDONESIA’S INFRASTRUCTURE NEEDSNew Government Looks to Correct a Decade of Under-investment

roads themselves – is maxed out.Shippers and terminal operators read-

ily agree that the port, a hub for domestic and international shipping and key access point to the capital Jakarta, has been operating beyond its intended capacity for years. Establishing new container facili-ties has been a long drawn-out process that still hasn’t been concluded, further piling pressure on to the port’s general cargo and breakbulk facilities.

Tanjung Priok’s capacity crunch is

representative of the country as a whole. Investment in the roads, railways, power stations, communications and transport hubs that are supposed to bind together this 17,000-plus island archipelago, which is home to more than 250 million people, lags far behind demand and has done so for some time. But Indonesia’s new gov-ernment under President Joko Widodo is promising to clear a path through the regulatory and financing hurdles that have prevented sufficient investment in

By Mike King

The highway leading to Jakarta’s Tanjung Priok Port in 2013. / Credit: Veri Sanovri Xinhua News Agency/Newscom

logistics perspective



infrastructure by public or private com-panies for much of the last decade.

Aided by the collapse in oil prices, “Jokowi,” as the popular president is widely known, was quick to remove most of the subsidies on fuel that have drained pub-lic finances for so long. This has created a vast new war chest that is largely being commit-ted to new toll roads, ports and airports, and other infrastruc-ture designed to improve inter-island and international trade and boost eco-nomic growth – all part of the president’s plan to turn Indonesia into a “maritime axis” between the Pacific and the Indian Ocean.

It is this, as much as the country’s rich natural resource industries, that will drive specialist logis-tics demand in the years ahead.

“The aggressive plan from govern-ment on infrastructure projects this year is expected to have a positive impact on the breakbulk/projects segment,” said Jakob Friis Sorensen, managing direc-tor of Maersk Indonesia. “We expect

imports of capital goods will improve and that in turn stimulates exports.”

Jokowi’s strategy will be good for the country as well as the forwarders, liners and logistics majors that will man-age to bring it to fruition, according to a new report by Transport Intelligence, Indonesia Transport & Logistics 2015 - A New Dawn. This argues that Indonesia has a once-in-a-generation opportunity to boost economic growth and reduce its reliance on raw materials exports by attracting more manufacturing activity for the domestic market and export. But to achieve this the country’s logistics performance needs to improve and this will only be possible by heavy infrastruc-ture investment (see related story).

Falling commodity prices have hurt both the economy and the transport and logis-tics industry that has invested in “support-ing new commodity production projects in places such as Kali-mantan and Sumatra, where miners and agricultural interests are now reining in their commitments,” said Ti analyst David Buckby. “Some 3PLs have closed offices in places like Balikpapan, where the primary business has been supporting mining and other raw materials extraction. The oil price

collapse has also postponed many Indo-nesian energy projects.

“But we believe that Indonesia could still prove to be one of the fastest grow-ing forwarding and logistics markets in the coming years, especially if it can reduce its logistics costs which are cur-rently a major drain on GDP.”

Ti’s report predicts an increase in the total Indonesian forwarding market of 11.7 percent compound annual growth rate over 2013-19. However, this will rise to 14.7 percent CAGR if trade facilitation and infrastructure investments reduce the cost of doing business (see table).

“Over the full horizon of Ti’s latest forecasts for Indonesia covering 2013-2019, project forwarding volumes should recover in line with oil prices,” Buckby explained. “Increased infrastructure investment over the period – the key to boosting forwarding volumes across all sectors – offer a strong source of opti-mism for Indonesian project logistics.”

Demand for logistics services across the Indonesian archipelago will not just come from fresh transport infra-structure projects either. The Jokowi government has also kept in place a ban on the export of many mineral ores unless they are processed within Indonesia first. This is also expected to continue to boost investment in smelting capacity. And Indonesia is still expand-ing its electricity industry, creating fresh flows of project work as new power sta-tions and supporting grids are built to meet consumer demand, often on remote islands with little infrastructure.

The diversity of future demand was evident in investments made across the country in the first quarter of 2015. Azhar Lubism, deputy director for investment monitoring and implementa-tion for the Investment Coordinating Board (BKPM), reported that first quar-ter investment would total around US$9 billion, up 12.6 percent on the year ear-lier period.

The quarterly investment covered a wide range of fields such as infrastruc-ture, smelters and agro-commodity processing and included advanced projects such as a pulp and paper mill in South Sumatra, palm-oil refineries in Riau, smelters in Sulawesi, and an elec-tronic component factory and a synthetic rubber and chemical plant in unspecified

Joko Widodo

David BuckbyJakob Sorenesn

INDONESIA TOTAL FREIGHT FORWARDING MARKET FORECAST 2013-193500*

3000

2500

2000

1500

1000

2013 2014 2015 2016 2017 2018 2019

*in million eurosSource: Transport IntelligenceLow LPI Increase (+0.2 points) by 2019

High Logistics Performance Index Increase (+0.6 points)

Moderate (Expected) LPI Increase (+0.4 points) by 2019

14.7%

11.7%

8.8%

2013-2019 CAGR



locations. The quarter also saw the start of construction in North Sumatra of a toll road connecting Binjai with Medan, the new multipurpose Kuala Tanjung seaport, plus ongoing investment in a string of coal-fired power plants.

Certainly those logistics executives interviewed by Breakbulk were positive on Indonesia. “Although Vietnam has benefited the most when it comes to OEM (original equipment manufacturer) relo-cation and as a new key sourcing country, we see Indonesia as the next big trend,” said William J. Wascher, president and CEO of Seko Logistics. “Indonesia is a key focus for us in 2015, and we should

be expanding in the country there this year.”

But it is not all optimism and sun-shine for Wascher. “The biggest obstacle for both 3PLs as well as original equipment manufacturers will continue to be infra-structure,” he said. “There is a severe lack of prime ware-housing and facilities for manufacturing.”

Paul Booth, vice president of project logistics in the Asia Pacific at Agility

Logistics, pointed to huge commitments made to building new power station capac-ity through 2020 at an estimated cost of US$80 billion and a budget of US$55 billion for seaport extensions. He said that although the oil price had collapsed, demand from major projects in Indone-sia has, so far at least, been resilient.

“With regards to oil and gas we don’t expect any drastic drops in the near

NOTABLE LOCATIONS AT A GLANCE

KALIMANTAN

SULAWESI

SUMATRA

JAVA

Tanjung Priok

Kuala Tanjung

Bal ikpapan

Binjai Medan

RIAU

Port

City

Province

William Wascher Paul Booth

Workers build a highway in Jakarta in 2012. / Credit: BAGUS INDAHONO/EPA/Newscom



Indonesia’s byzantine border controls, murky legal environment and long history of institutional cor-ruption places the country at the low rank of 107th out of 175 nations in Transparency International’s Cor-ruption Perception Index.

And these are just some of the factors that make doing business in Indonesia difficult.

Domestic ocean transport costs between its hundreds of populated islands are also often prohibitively expensive and inefficient due to the poor quality of the national fleet, the enforcement of cabotage laws and the poor management of state-owned ports. Ministries and government agencies in many areas have overlapping powers that undermine efforts to enforce laws and regulations and often renders obtaining the correct permits and licenses a lottery.

As a result, the World Bank’s Doing Business report for 2015 ranks Indonesia 114th out of 189 economies for ease of conducting business. Compared to East Asia and Pacific averages, Indonesia was behind in every measure.

However, its lack of infrastruc-ture is perhaps the biggest drain on industry and one of the main rea-sons for the country’s poor logistics performance.

The World Bank’s Logistics Performance Index (LPI) uses six

metrics to measure overall logistics performance:

• Customs efficiency.• Infrastructure quality.• Ease of arranging international

shipments.• Logistics quality and

competence.• Tracking and tracing ability.• Timeliness of shipments.Each metric and the overall

score is measured up to 5. In the 2014 Index, Indonesia was ranked 53rd globally and 12th in the Asia Pacific with a score of 3.08 out of 5. Its infrastructure score was 2.92, placing it behind Malaysia (3.56), Thailand (3.40) and Vietnam (3.11).

“Ti estimates that at present logistics costs account for 24 per-cent of GDP. This acts as a major drag on economic growth and the attraction of foreign direct invest-ment,” explained Ti analyst David Buckby.

Another glaring weakness is how difficult it is to arrange inter-national shipments in Indonesia, which scored 2.87 and ranked 74th globally in the latest LPI, sub-stantially behind its four ASEAN competitors. It also ranked poorly for customs efficiency and tracking and tracing and was in the middle of the pack for logistics compe-tence and timeliness.

All of which makes Indonesia a hard place to operate for specialist

logistics providers. “Infrastructure to handle the projects segment in Indonesia is still lacking if we com-pare it to peers in South East Asia,” said Jakob Friis Sorensen, manag-ing director of Maersk Indonesia. “Different capabilities between Indonesia ports to handle project cargo has become one of the main challenges, especially outside Java. This often means dependency on high-cost land transport.”

Francois Traversa, managing director of Andhika GAC Indonesia, also pointed to the very differ-ent cultures found on Indonesia’s islands. “The lack of adequate and proper infrastruc-ture and cultural diversity are some of the challenges for heavy-lift proj-ect operations in Indonesia,” he said. “Cus-toms clearance, government regu-lations, road and traffic conditions and obtaining the necessary per-mits and approvals can affect the speed at which project cargoes are cleared and delivered to the des-tination. Hence, careful planning is imperative for every project move, and involves taking into account special requirements and permits to route surveys.”

OBSTACLES TO DOING BUSINESS

Francois Traversa

future,” he added. “BP, Chevron and ENI will continue with their mega projects. Apart from that oil prices may recover by end 2015 or early 2016.

“Mining is a little more problematic, but again major players like Freeport and Vale intend to go ahead with their expansion projects. Besides, due to the Indonesian Mining Law, lots of smelters need to be built,” Booth said.

GAC Indonesia is also optimis-tic about Indonesia. The company’s

operations are conducted via two long-standing alliances with local partners – PT Andhika Lines for shipping and the Samudera Group for logistics services.

“The development of new infra-structure and facilities, coupled with the recovery in regional and interna-tional trade, will give rise to a greater demand,” said Pramodh Ellath, general manager of GAC Samudera Freight Ser-vices. “The question is how soon and fast can the development take place and

be completed. Indonesia has announced an addition of 40,000 megawatts of power, and this will have good project movements. With the ban on export of raw minerals, new smelters are being planned and this constitutes a major investment plan.

“Project cargo handlers are likely to benefit as companies import machines, construction equipment, facility com-ponents and other goods for these facilities.” BB


R io de Janeiro’s leading break-bulk terminals saw the first phase of a Reais1.8 billion (US$557 million) expansion

scheme inaugurated by Brazil President Dilma Rousseff at the city’s Caju quay-side.

Rousseff, whose second term as president is under fire for wrongdoing at state-controlled oil and transport com-pany Petrobras, officiated at the opening of the newly extended 1.86-kilometer quay for the MultiCar car terminal and MultiRio (both part of the Multiter-minais holding group) along with the neighboring LibraRio container ter-minal. The new quay is believed to be the longest continuous quay in South America.

MultiRio is a project cargo and con-tainer facility, and handles about 95 percent of all project cargo in/out of Rio de Janeiro, including heavy machinery for the Comperj refinery the other side of

Project, Container Complex Boasts Expansive Quay

By Rob Ward Guanabara Bay and for projects related to last year’s soccer World Cup and next year’s Rio Olympics.

The three complexes together have been christened Porto do Futuro (Port of The Future) and a new link road and tunnel will be built to move cargoes directly from the Caju area to Avenida Brasil, thereby reducing congestion in the center of Rio de Janeiro.

Luiz Carneiro, president of MultiCar and MultiRio, said MultiRio now has 1 million TEUs of annual capacity, up from 670,000 TEUs prior to the Porto do Futuro expansion.

The pier extension added 800 meters to MultiRio and up to 260 meters for MultiCar plus an additional 15 meters using dolphins. Additional equipment includes bringing ship-to-shore gantry cranes from five to nine, and adding 28 rubber-tired gantries. A new dredging contract signed by the Special Ports Ministry (SEP) will improve the mini-mum draft for the three terminals to 15 meters, from 13 meters currently, by the end of next year. Future plans would

deepen draft to 17 meters.The expansion will see Multi-Car

eventually increase its annual capacity 36 percent to 326,000 vehicles. The vehi-cle terminal has already seen a number of modifications including the addition of covered parking for 7,000 vehicles.

“Over the last decade, we have seen an increase in the size of ships at an unprecedented pace, all seeking economies of scale,” Carneiro said at the ceremony for the expansion. “As the vessel sizes grew, we were gradually losing the ability to operate two ships simultaneously. If nothing was done, we would have lost about one-third of our installed capacity, along with the ability to provide an efficient and competitive service, since international best practice dictates a container terminal must have a minimum of two berths.”

Rousseff’s second term as president is reeling under pressure over Petro-bras. She claims no knowledge of the bribery scandal despite being on the board during some of the years under investigation. BB

port news

RIO TOASTS ‘PORT OF THE FUTURE’

Brazil President Dilma Rousseff (right) and Luiz Careiro, president of MultiCar and MultiRio (left).

opinion


DIGGING OUTsures to underwriters, who may require payment of additional pre-mium. Finally, most cargo insurance policies stipulate a maximum liabil-ity in the event of unintentional accumulation, and excess losses are excluded entirely.

Delay: Losses due to delay are specifically excluded by most cargo insurance policies. Some com-modities have a limited shelf life or increased susceptibility to atmo-spheric conditions. Even if cargo is transported in a temperature-controlled unit, losses resulting from the withholding of power, fuel or labor may be excluded from coverage. These losses are not for-tuitous or accidental and therefore are not covered. Cargo policies do not address the risks of lost sales, profits or markets, as these are consequential financial losses and not physical loss or damage to the cargo.

Finally, additional costs associ-ated with expediting replacement freight via alternative modes or routes are not recoverable under most cargo insurance policies absent cargo loss or damage resulting from a covered peril.

Force Majeure: During a labor disruption, carriers may declare “force majeure,” meaning forces beyond their control precluded them from fulfilling their obligations under the contract of carriage. The carrier is then permitted to dis-charge cargo at an alternate port and terminate the contract of carriage. Force majeure requires the cargo owner to move the cargo, at its own expense, to its final destination.

Consider the following points as they relate to insurance coverage:

• Shipper’s Interest Cargo Insurance is not intended to cover the additional transportation costs realized.

W hile the U.S. North-east and Midwest continue to dig out from the onslaught

of this winter’s record snowfall, the West Coast must now dig out from under the backlog of cargo resulting from the protracted labor dispute between the International Long-shoreman and Warehouse Union and Pacific Maritime Association.

Although the labor dispute has been resolved, experts anticipate that it may take several months to work through the congestion. Unfortunately, cargo will continue to be exposed to increased levels of risk until shipment patterns return to normal. Whether it’s container-ized cargo or breakbulk, heavy-lift or project cargo, there are several specific issues about which cargo owners and transportation provid-ers should remain vigilant:

Accumulation: Cargo at rest is cargo at risk, and when cargo idles on a ship, at the port or in a warehouse, the likelihood of dam-age or theft increases significantly. Even when Shipper’s Interest Cargo Insurance is purchased, extensive delays can lead to coverage insuf-ficiency.

Policyholders should make certain that cargo values are monitored throughout a disrup-tion, as choke points within the supply chain may result in accu-mulations beyond standard policy limits. These limits are commonly expressed in terms of “one convey-ance/one place/one time.” Any exposures in excess of those policy limits are “held covered” pending the timely reporting of the expo-

Jason Odgers

Jason Palumbo

Managing Risks Associated with Port Disruptions

By Jason Odgers and Jason Palumbo

Credit: Shutterstock

https://www.roanoketrade.com/insurance/marine-cargo-insurance/

https://www.roanoketrade.com/insurance/marine-cargo-insurance/


• Cargo may be discharged in a coun-try excluded from coverage, subject to special insuring conditions and/or addi-tional premium.

• Cargo transported by ocean under two separate bills of lading is considered “transshipped” and is excluded by most cargo insurance policies. Coverage may be further compromised if the second transit is via barge since many policies exclude barge transit except as a con-necting conveyance.

Intermediary Liability: Improper release of cargo is a common source of Errors & Omissions (E&O) claims, so after a disruption it is imperative that proper protocols are followed when releasing freight. Increased workload, confusion and urgency can easily result in misreleased freight and costly claims.

Other examples of E&O claims resulting from port disruptions may include:

• Negligent selection of underlying carrier or route.

• Failure to advise client of potential delay.

• Failure to monitor/advise client of impact to cargo insurance (accumula-tion/deviation, etc.).

Finally, due to the “joint and sev-eral liability” clause included in most carriers’ terms and conditions, the inter-mediary can be held liable for unpaid freight and related charges if the cargo owner abandons their shipments. Inter-mediaries should consider purchasing extended coverage under their legal lia-bility policy to address such exposures.

The consequences of port disrup-tions have a broad impact throughout the supply chain. The risks of accumula-tion, delay, force majeure and liability claims are only a few of the potential pitfalls. Cargo owners and transporta-tion intermediaries should be aware of these risks, actively manage their expo-sures and maintain a regular dialogue with their insurance provider to pre-serve coverage. BB

Jason Odgers is vice president of client development, and Jason Palumbo is prod-uct development and support coordinator of Roanoke Insurance Group.

“The consequences of port disruptions have a broad impact

throughout the supply chain.”

B reakbulk.com has relaunched with an entirely new look and feel, with added features to provide information about

Breakbulk events, publications and industry news faster than before.

The biggest difference is a stronger

INTRODUCING THE NEW BREAKBULK.COMRedesign Emphasizes Events, Images

By Leslie Meredith focus on Breakbulk events – displayed prominently on the homepage with quick access to each event’s full channel and links to registration for upcoming events. Each event section has been reorganized for faster access to the information you need at a given time. Within the menu, pages are organized by user, delegates and exhibitors.

The revamped site is rich with large images of events and cargo moves.

There’s no doubt that over the past five years there has been a tremendous shift towards visual content across the Internet, from the rise of photo-centric social media sites like Instagram and Pinterest to the revamp of traditional news sites such as CNN and BBC. Why? Scientists have found our brains pro-cess pictures 60,000 times faster than text, and in today’s world of media overload, we want your Breakbulk min-utes to be as engaging and informative as possible.

Fortunately in this industry great industry visuals are easily within reach. Breakbulk transporters move the world’s biggest cargoes to destinations around the globe. Photos and video convey the scale of these massive moves and are always engaging.

Likewise, images capture the crowds and camaraderie found at Breakbulk events. That’s why you’ll see large photos accompanying each news story, along with photo galleries, slide-shows and videos throughout the site. All of our event and news photos can be viewed in one location, on Breakbulk’s Flickr account at flickr.com/photos/breakbulk-events.

Behind the scenes, added features make the website responsive. Pages automatically adjust to the size of a device’s screen, from a small smartphone to the largest desktop monitor or big-screen TV. The platform has also been fine-tuned for faster loading times and greater stability.

But our development doesn’t stop with this launch. Moving forward, expanding the site’s language options will better suit the preferences of Breakbulk’s global audience. We’re also looking at ways to streamline the materi-als submission process for exhibitors and sponsors.

If you have features, news stories and press releases you’d like to see added to Breakbulk.com, send them to [email protected]. Include at least one high-resolution image.

The website can also showcase com-plex movements, with photos and video along with a description of the job. Break-bulk.com can help build connections throughout this dynamic industry. BB

technology


mailto:[email protected]

mailto:[email protected]

Visit us at booth #1404

Local service, Global reachComprehensive coverage, cutting-edge technology, and local support for your operations make Avalon the premier choice for freight forwarders.

• Cargo Insurance• Customs and Transportation Bonds• Professional and Cargo Liability

• Property and Casualty Insurance• Truck Insurance• Credit Insurance

www.avalonrisk.com

For more information, contact our Houston office at (713) 343-0889 or [email protected]

INDEXreakbulk cargo is an eclectic mix, encompassing forest products, steel, pressure vessels, windmill

blades, rolling stock and out-of-gauge items.

With this in mind, BREAKBULK INDEX data ranges from steel production to details of planned capital projects.

The global nature of today’s breakbulk and heavy-lift sectors requires transportation professionals to be on top of economic trends worldwide, which calls for inclusion of focused macro-economic data on prices and events that affect EPCs, the breakbulk community and the multipurpose fleet.

B


bb index

Source: Danske Market Equities, www.danskebank.dk

EUROPEAN FREIGHT FORWARDING INDEX

The index, based on European forwarders’ actual and expected freight volumes, remains below 50 although August marked an increase. Values below 50 on the zero-to-100 scale indicate a decline.

FORWARDING INDEX

O

N

D

J

F

M

A

M

J

J

A

S

O

N

D

J

F

M

A

M

J

J

A

S

O

N

D

J

F

M

A

2015

2012

2013

Actual Forecast

80706050403020100

2014

FOREST PRODUCTS: PULP INDEX

125

100

75

Pulp prices cost, insurance and freight to main European ports were normalized to 100 in January 2000 and are based on average euro prices of northern and southern bleached softwood and eucalyptus kraft and northern bleached hardwood kraft pulp weighted by production volume.

EUROPE

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F



175

150

125

100

75

Delivered pulp prices were normalized to 100 in January 2000 and are based on average US$ prices of northern and southern bleached softwood kraft, bleached eucalyptus kraft, and northern bleached hardwood kraft pulp weighted by production volume.

NORTH AMERICA

2012

2012

2012

2013

2013

2013

2014

2014

2014

2015

2015

2015

175

150

125

100

75

Pulp prices cost, insurance and freight to main East and Southeast Asian ports were normalized to 100 in January 2003 and are based on average US$ prices of northern, southern and Russian bleached softwood, radiata, eucalyptus and mixed tropical hardwood pulp weighted by production volume.

ASIA

Source: RISI, www.risi.com

FOR

EST

PR

OD

UC

TS

$

FOR

WA

RD

ING

IND

EX

$

Cre

dit:

Shu

tter

stoc

k


LOGISTICS LOGISTICS PERFORMANCE INDEX 2014

The LPI index is a multidimensional assessment of logistics performance, rated on a scale from 1 (worst) to 5 (best). The six core components captured by the LPI survey are rated by respondents on a scale of 1–5, where 1 is very low or very difficult and 5 is very high or very easy, except for question 15, where 1 is hardly ever and 5 is nearly always.

LOGISTICS TRACKING INTERNATIONAL QUALITY AND AND LPI RANK LPI SCORE CUSTOMS INFRASTRUCTURE SHIPMENTS COMPETENCE TRACING TIMELINESS

% OF LOWER UPPER LOWER UPPER HIGHEST ECONOMY RANK BOUND BOUND SCORE BOUND BOUND PERFORMER RANK SCORE RANK SCORE RANK SCORE RANK SCORE RANK SCORE RANK SCORE

Germany 1 1 1 4.12 4.07 4.17 100.0 2 4.10 1 4.32 4 3.74 3 4.12 1 4.17 4 4.36Netherlands 2 2 5 4.05 3.97 4.12 97.6 4 3.96 3 4.23 11 3.64 2 4.13 6 4.07 6 4.34Belgium 3 1 6 4.04 3.96 4.13 97.5 11 3.80 8 4.10 2 3.80 4 4.11 4 4.11 2 4.39U.K. 4 2 5 4.01 3.96 4.07 96.6 5 3.94 6 4.16 12 3.63 5 4.03 5 4.08 7 4.33Singapore 5 2 7 4.00 3.95 4.06 96.2 3 4.01 2 4.28 6 3.70 8 3.97 11 3.90 9 4.25Sweden 6 1 20 3.96 3.68 4.24 94.9 15 3.75 9 4.09 3 3.76 6 3.98 7 3.98 8 4.26Norway 7 1 19 3.96 3.69 4.22 94.8 1 4.21 4 4.19 30 3.42 1 4.19 31 3.50 5 4.36Luxembourg 8 1 21 3.95 3.65 4.24 94.4 10 3.82 15 3.91 1 3.82 14 3.78 22 3.68 1 4.71U.S. 9 6 10 3.92 3.87 3.97 93.5 16 3.73 5 4.18 26 3.45 7 3.97 2 4.14 14 4.14Japan 10 6 12 3.91 3.85 3.97 93.4 14 3.78 7 4.16 19 3.52 11 3.93 9 3.95 10 4.24Ireland 11 5 17 3.87 3.73 4.01 91.9 12 3.80 16 3.84 27 3.44 9 3.94 3 4.13 16 4.13Canada 12 9 17 3.86 3.77 3.95 91.5 20 3.61 10 4.05 23 3.46 10 3.94 8 3.97 11 4.18France 13 9 17 3.85 3.77 3.92 91.2 18 3.65 13 3.98 7 3.68 15 3.75 12 3.89 13 4.17Switzerland 14 11 17 3.84 3.78 3.91 91.1 7 3.92 11 4.04 15 3.58 16 3.75 18 3.79 21 4.06Hong Kong SAR, China 15 11 17 3.83 3.77 3.89 90.5 17 3.72 14 3.97 14 3.58 13 3.81 13 3.87 18 4.00Australia 16 11 17 3.81 3.74 3.88 90.0 9 3.85 12 4.00 18 3.52 17 3.75 16 3.81 26 4.00Denmark 17 2 28 3.78 3.52 4.05 89.1 13 3.79 17 3.82 9 3.65 18 3.74 36 3.36 3 4.39Spain 18 17 23 3.72 3.63 3.80 87.1 19 3.63 20 3.77 21 3.51 12 3.83 26 3.54 17 4.07Taiwan, China 19 16 23 3.72 3.62 3.81 87.0 21 3.55 24 3.64 5 3.71 25 3.60 17 3.79 25 4.02Italy 20 18 23 3.69 3.64 3.74 86.2 29 3.36 19 3.78 17 3.54 23 3.62 14 3.84 22 4.05Korea, Rep. 21 18 25 3.67 3.58 3.75 85.4 24 3.47 18 3.79 28 3.44 21 3.66 21 3.69 28 4.00Austria 22 11 35 3.65 3.41 3.89 84.8 23 3.53 25 3.64 40 3.26 26 3.56 10 3.93 23 4.04New Zealand 23 5 39 3.64 3.28 4.01 84.7 6 3.92 22 3.67 8 3.67 27 3.56 38 3.33 40 3.72Finland 24 9 39 3.62 3.32 3.93 84.0 8 3.89 28 3.52 20 3.52 19 3.72 39 3.31 38 3.80Malaysia 25 22 28 3.59 3.52 3.66 83.0 27 3.37 26 3.56 10 3.64 32 3.47 23 3.58 31 3.92Portugal 26 18 39 3.56 3.34 3.78 82.0 31 3.26 31 3.37 29 3.43 20 3.71 20 3.71 35 3.87U.A.E. 27 25 32 3.54 3.48 3.60 81.3 25 3.42 21 3.70 43 3.20 31 3.50 24 3.57 32 3.92China 28 26 32 3.53 3.48 3.59 81.1 38 3.21 23 3.67 22 3.50 35 3.46 29 3.50 36 3.87Qatar 29 20 39 3.52 3.34 3.70 80.6 37 3.21 29 3.44 16 3.55 28 3.55 32 3.47 34 3.87Turkey 30 26 35 3.50 3.43 3.57 80.1 34 3.23 27 3.53 48 3.18 22 3.64 19 3.77 41 3.68Poland 31 24 38 3.49 3.35 3.64 79.9 32 3.26 46 3.08 24 3.46 33 3.47 27 3.54 15 4.13Czech Rep. 32 21 39 3.49 3.31 3.67 79.8 33 3.24 36 3.29 13 3.59 29 3.51 25 3.56 39 3.73Hungary 33 25 39 3.46 3.32 3.61 78.9 48 2.97 40 3.18 32 3.40 37 3.33 15 3.82 20 4.06South Africa 34 24 43 3.43 3.23 3.64 77.9 42 3.11 38 3.20 25 3.45 24 3.62 41 3.30 33 3.88Thailand 35 29 39 3.43 3.33 3.53 77.8 36 3.21 30 3.40 39 3.30 38 3.29 33 3.45 29 3.96Latvia 36 25 44 3.40 3.20 3.61 77.0 35 3.22 51 3.03 33 3.38 42 3.21 30 3.50 19 4.06Iceland 37 22 49 3.39 3.13 3.65 76.6 22 3.54 33 3.34 49 3.15 34 3.46 35 3.38 53 3.51Slovenia 38 26 43 3.38 3.20 3.56 76.3 41 3.11 32 3.35 57 3.05 30 3.51 28 3.51 37 3.82Estonia 39 20 58 3.35 3.00 3.69 75.1 26 3.40 35 3.34 34 3.34 39 3.27 47 3.20 49 3.55Romania 40 34 54 3.26 3.08 3.44 72.4 59 2.83 64 2.77 36 3.32 43 3.20 34 3.39 27 4.00Israel 41 36 50 3.26 3.11 3.41 72.4 43 3.10 45 3.11 96 2.71 36 3.35 46 3.20 12 4.18Chile 42 38 50 3.26 3.12 3.39 72.3 39 3.17 41 3.17 53 3.12 44 3.19 40 3.30 44 3.59Slovak Rep. 43 33 55 3.25 3.03 3.48 72.2 52 2.89 37 3.22 38 3.30 46 3.16 63 3.02 30 3.94Greece 44 40 52 3.20 3.08 3.32 70.5 28 3.36 42 3.17 62 2.97 40 3.23 61 3.03 54 3.50Panama 45 38 57 3.19 3.00 3.38 70.3 40 3.15 52 3.00 47 3.18 68 2.87 37 3.34 42 3.63Lithuania 46 33 66 3.18 2.88 3.47 69.8 44 3.04 39 3.18 55 3.10 57 2.99 49 3.17 43 3.60Bulgaria 47 40 57 3.16 3.00 3.31 69.1 64 2.75 53 2.94 37 3.31 55 3.00 76 2.88 24 4.04Vietnam 48 40 59 3.15 2.99 3.32 69.0 61 2.81 44 3.11 42 3.22 49 3.09 48 3.19 56 3.49Saudi Arabia 49 45 51 3.15 3.10 3.20 68.8 56 2.86 34 3.34 70 2.93 48 3.11 54 3.15 47 3.55Mexico 50 44 55 3.13 3.03 3.23 68.2 70 2.69 50 3.04 46 3.19 47 3.12 55 3.14 46 3.57Malta 51 39 69 3.11 2.85 3.36 67.5 46 3.00 47 3.08 41 3.23 54 3.00 52 3.15 81 3.15Bahrain 52 20 124 3.08 2.45 3.71 66.7 30 3.29 49 3.04 58 3.04 51 3.04 42 3.29 119 2.80Indonesia 53 40 66 3.08 2.89 3.27 66.7 55 2.87 56 2.92 74 2.87 41 3.21 58 3.11 50 3.53

continued on page 88


bb index

TELEPHONE: 305-597-9595 | FAX: 305-597-9678 | E-MAIL: [email protected] | WEBSITE: www.express-freight-intl.com

We specialize in Helicopter Shipments and Light Aircraft

Air, Ocean, Containerized, Breakbulk, RO/RO, LO/LO

Also Construction, Mining, Railroad, and Farm Machinery

IN BUSINESS SINCE 1992

LOGISTICS TRACKING INTERNATIONAL QUALITY AND AND LPI RANK LPI SCORE CUSTOMS INFRASTRUCTURE SHIPMENTS COMPETENCE TRACING TIMELINESS


India 54 49 56 3.08 3.01 3.15 66.6 65 2.72 58 2.88 44 3.2 52 3.03 57 3.11 51 3.51Croatia 55 40 76 3.05 2.8 3.3 65.8 50 2.95 55 2.92 61 2.98 56 3 59 3.11 62 3.37Kuwait 56 44 77 3.01 2.79 3.23 64.4 68 2.69 43 3.16 89 2.76 59 2.96 50 3.16 60 3.39Philippines 57 44 78 3 2.78 3.23 64.2 47 3 75 2.6 35 3.33 61 2.93 64 3 90 3.07Cyprus 58 40 92 3 2.67 3.33 64.1 53 2.88 59 2.87 60 3.01 63 2.92 65 3 65 3.31Oman 59 50 69 3 2.85 3.14 63.9 74 2.63 57 2.88 31 3.41 73 2.84 80 2.84 67 3.29Argentina 60 52 68 2.99 2.87 3.1 63.6 85 2.55 63 2.83 64 2.96 62 2.93 53 3.15 55 3.49Ukraine 61 51 71 2.98 2.84 3.11 63.3 69 2.69 71 2.65 67 2.95 72 2.84 45 3.2 52 3.51Egypt, Arab Rep. 62 40 99 2.97 2.63 3.3 63 57 2.85 60 2.86 77 2.87 58 2.99 43 3.23 99 2.99Serbia 63 47 80 2.96 2.75 3.17 62.9 113 2.37 66 2.73 54 3.12 53 3.02 69 2.94 48 3.55El Salvador 64 51 74 2.96 2.81 3.11 62.8 51 2.93 72 2.63 45 3.2 45 3.16 66 3 128 2.75Brazil 65 56 70 2.94 2.84 3.05 62.3 94 2.48 54 2.93 81 2.8 50 3.05 62 3.03 61 3.39Bahamas, The 66 51 86 2.91 2.7 3.12 61.2 45 3 65 2.74 63 2.96 64 2.92 99 2.64 72 3.19Montenegro 67 47 104 2.88 2.59 3.16 60.1 60 2.83 62 2.84 51 3.15 117 2.45 84 2.76 73 3.19Jordan 68 56 86 2.87 2.7 3.05 60 78 2.6 76 2.59 65 2.96 60 2.94 96 2.67 58 3.46Dom. Rep. 69 51 102 2.86 2.61 3.11 59.6 80 2.58 73 2.61 71 2.93 65 2.91 72 2.91 76 3.18Jamaica 70 44 125 2.84 2.45 3.24 59 54 2.88 61 2.84 86 2.79 84 2.72 89 2.72 83 3.14Peru 71 60 90 2.84 2.69 2.99 59 96 2.47 67 2.72 69 2.94 76 2.78 83 2.81 66 3.3Pakistan 72 55 106 2.83 2.59 3.06 58.5 58 2.84 69 2.67 56 3.08 75 2.79 86 2.73 123 2.79Malawi 73 56 104 2.81 2.59 3.03 58.1 62 2.79 48 3.04 108 2.63 70 2.86 100 2.63 100 2.99Kenya 74 50 120 2.81 2.48 3.14 58 151 1.96 102 2.4 50 3.15 90 2.65 60 3.03 45 3.58Nigeria 75 59 100 2.81 2.62 3 57.9 117 2.35 83 2.56 107 2.63 85 2.7 51 3.16 57 3.46Venezuela, RB 76 60 99 2.81 2.63 2.99 57.9 109 2.39 74 2.61 68 2.94 77 2.76 70 2.92 74 3.18Guatemala 77 66 92 2.8 2.66 2.93 57.6 63 2.75 88 2.54 76 2.87 87 2.68 93 2.68 68 3.24Paraguay 78 66 96 2.78 2.64 2.92 57 90 2.49 97 2.46 79 2.83 78 2.76 74 2.89 70 3.22Côte d’Ivoire 79 60 112 2.76 2.53 2.99 56.4 120 2.33 101 2.41 75 2.87 95 2.62 67 2.97 64 3.31Rwanda 80 56 120 2.76 2.49 3.03 56.3 89 2.5 113 2.32 88 2.78 92 2.64 68 2.94 63 3.34Bosnia and Herzegovina 81 62 114 2.75 2.52 2.97 56 105 2.41 84 2.55 87 2.78 81 2.73 107 2.55 59 3.44Maldives 82 56 124 2.75 2.45 3.04 56 49 2.95 82 2.56 72 2.92 74 2.79 92 2.7 148 2.51Cambodia 83 56 125 2.74 2.44 3.04 55.8 71 2.67 79 2.58 78 2.83 89 2.67 71 2.92 129 2.75Sao Tom. & Principe 84 56 124 2.73 2.46 3.01 55.5 103 2.42 78 2.59 66 2.95 109 2.5 56 3.13 125 2.77Lebanon 85 52 135 2.73 2.36 3.1 55.3 124 2.29 89 2.53 118 2.53 67 2.89 44 3.22 108 2.89Ecuador 86 67 112 2.71 2.53 2.89 54.8 92 2.49 94 2.5 83 2.79 97 2.61 95 2.67 77 3.18Costa Rica 87 69 112 2.7 2.53 2.87 54.5 110 2.39 99 2.43 106 2.63 69 2.86 82 2.83 95Kazakhstan 88 66 121 2.7 2.47 2.93 54.4 121 2.33 106 2.38 100 2.68 83 2.72 81 2.83 69 3.24Sri Lanka 89 67 120 2.7 2.48 2.91 54.3 84 2.56 126 2.23 115 2.56 66 2.91 85 2.76 85 3.12Russian Fed. 90 78 103 2.69 2.6 2.79 54.3 133 2.2 77 2.59 102 2.64 80 2.74 79 2.85 84 3.14

continued from page 87


www.mortrans.ru +7 812 325-3773Offices in Saint-Petersburg & Moscow, Russia

• Project Cargo

• General Freight Forwarding

• Consultancy on Transportation and Related Russian Issues

• Over 20 Years of Logistical Solutions

email:[email protected] or [email protected]

Uruguay 91 70 115 2.68 2.51 2.85 53.8 111 2.39 90 2.51 103 2.64 100 2.58 75 2.89 91 3.06 LOGISTICS TRACKING INTERNATIONAL QUALITY AND AND LPI RANK LPI SCORE CUSTOMS INFRASTRUCTURE SHIPMENTS COMPETENCE TRACING TIMELINESS


Armenia 92 60 136 2.67 2.35 2.99 53.6 75 2.63 107 2.38 90 2.75 79 2.75 114 2.50 98 3.00Namibia 93 64 136 2.66 2.35 2.96 53.1 125 2.27 81 2.57 97 2.70 86 2.69 106 2.56 82 3.15Moldova 94 67 127 2.65 2.42 2.89 53.0 98 2.46 85 2.55 52 3.14 118 2.44 131 2.35 109 2.89Nicaragua 95 67 127 2.65 2.42 2.88 53.0 72 2.66 130 2.20 98 2.69 98 2.58 104 2.58 79 3.17Algeria 96 67 127 2.65 2.40 2.90 52.8 66 2.71 87 2.54 117 2.54 102 2.54 109 2.54 94 3.04Colombia 97 72 125 2.64 2.45 2.83 52.5 79 2.59 98 2.44 95 2.72 91 2.64 108 2.55 111 2.87Burkina Faso 98 60 143 2.64 2.29 2.99 52.5 88 2.50 111 2.35 105 2.63 94 2.63 115 2.49 71 3.21Belarus 99 70 127 2.64 2.42 2.85 52.5 87 2.50 86 2.55 91 2.74 116 2.46 113 2.51 93 3.05Ghana 100 66 138 2.63 2.33 2.93 52.1 130 2.22 70 2.67 93 2.73 121 2.37 73 2.90 113 2.86Senegal 101 58 146 2.62 2.24 3.00 52.0 76 2.61 116 2.30 59 3.03 103 2.53 98 2.65 146 2.53Liberia 102 67 134 2.62 2.36 2.88 51.9 83 2.57 80 2.57 114 2.57 71 2.86 105 2.57 144 2.57Honduras 103 78 127 2.61 2.42 2.79 51.5 67 2.70 124 2.24 85 2.79 112 2.47 101 2.61 121 2.79Ethiopia 104 49 158 2.59 2.04 3.15 51.0 102 2.42 134 2.17 121 2.50 96 2.62 97 2.67 78 3.17Nepal 105 77 132 2.59 2.38 2.80 50.9 123 2.31 122 2.26 104 2.64 107 2.50 87 2.72 92 3.06Sol. Islands 106 72 137 2.59 2.34 2.84 50.8 91 2.49 96 2.46 146 2.22 82 2.72 88 2.72 102 2.96Burundi 107 61 154 2.57 2.15 2.99 50.2 77 2.60 104 2.40 111 2.60 106 2.51 112 2.51 126 2.76Bangladesh 108 81 133 2.56 2.37 2.76 50.1 138 2.09 138 2.11 80 2.82 93 2.64 122 2.45 75 3.18Benin 109 64 153 2.56 2.16 2.96 50.0 73 2.64 109 2.35 99 2.69 123 2.35 123 2.45 115 2.85Tunisia 110 72 144 2.55 2.27 2.83 49.7 146 2.02 118 2.30 73 2.91 120 2.42 124 2.42 80 3.16Fiji 111 52 158 2.55 1.99 3.10 49.5 106 2.40 95 2.47 94 2.72 139 2.22 118 2.47 101 2.97Angola 112 77 143 2.54 2.29 2.80 49.4 114 2.37 140 2.11 84 2.79 128 2.31 103 2.59 96 3.02Chad 113 66 154 2.53 2.14 2.92 49.0 97 2.46 112 2.33 136 2.33 125 2.34 90 2.71 97 3.02Tajikistan 114 85 138 2.53 2.32 2.73 48.9 115 2.35 108 2.36 92 2.73 113 2.47 119 2.47 133 2.74Mauritius 115 73 148 2.51 2.22 2.81 48.5 128 2.25 91 2.50 109 2.63 110 2.48 133 2.34 110 2.88Georgia 116 91 138 2.51 2.33 2.69 48.3 131 2.21 100 2.42 138 2.32 119 2.44 102 2.59 87 3.09Macedonia, FYR 117 86 143 2.50 2.28 2.71 48.0 116 2.35 92 2.50 132 2.38 105 2.51 121 2.46 118 2.81Libya 118 86 143 2.50 2.28 2.72 47.9 104 2.41 119 2.29 140 2.29 131 2.29 78 2.85 114 2.85Mali 119 79 148 2.50 2.22 2.77 47.9 141 2.08 129 2.20 82 2.80 142 2.20 91 2.70 106 2.90Botswana 120 70 154 2.49 2.14 2.84 47.8 112 2.38 125 2.23 129 2.42 99 2.58 127 2.40 103 2.94Bolivia 121 78 152 2.48 2.16 2.8 47.4 108 2.40 133 2.17 135 2.35 88 2.68 94 2.68 141 2.60Guinea 122 91 146 2.46 2.24 2.69 46.9 119 2.34 141 2.10 125 2.47 124 2.35 126 2.41 86 3.10Zambia 123 73 154 2.46 2.10 2.82 46.9 86 2.54 115 2.31 152 2.13 114 2.47 120 2.47 105 2.91Guyana 124 93 144 2.46 2.26 2.66 46.7 99 2.46 105 2.4 128 2.43 133 2.27 117 2.47 131 2.74Azerbaijan 125 81 154 2.45 2.15 2.75 46.4 82 2.57 68 2.71 113 2.57 149 2.14 148 2.14 143 2.57Papua New Guinea 126 86 154 2.43 2.15 2.71 45.8 107 2.40 127 2.23 126 2.47 115 2.47 141 2.27 135 2.73

Note: The relative LPI score is obtained by normalizing the LPI score: Percentage of highest performer = 100 Å~ [LPI – 1] / [LPI highest – 1]. Thus, the best performer has the maximum relative LPI score of 100 percent.

opinion


or will global providers get a fair shot at the business? According to knowledgeable observers attending this year’s Breakbulk China Exhibition, we can expect China to move toward more inclusive international business standards over the next few years – but the reality remains to be seen.

Officially, China’s Silk Road strategy is all about the soft power of trade, about reig-niting the ancient, intertwined Eurasian market, leaving politics out of the equation. However, plenty of risk remains. China’s avowed disinterest in other countries’ politics cuts both ways. Several African countries claim that they have felt the sting of a new generation of colonial-style exploitation thanks to Chinese investment. To assume that can’t happen elsewhere is hubristic. Additionally, corruption can be a ruinously expensive mistake in western nations, and Chinese business practices are not necessarily governed by western assump-tions about the rule of law.

China’s neighbors may not sympathize with its Silk Route ambitions, either. Rus-sia, Myanmar and India all have land border disputes with China, while Japan disputes its maritime border. China also has trouble controlling some indigenous peoples in its western interior. Silk route investments would help China secure alternative rout-ings and strengthen ties with new allies, potentially political rather than economic strategies. Still, investments in roads, rail, ports, power and other sorely needed infra-structure will be an enormous boon in the developing regions along the proposed modern silk routes; and nothing can happen without the breakbulk and project cargo transport industry’s involvement. BB

C hina is pivoting west, and fast. Its much-discussed “Silk Road” land and sea trade lane initiatives will affect far more than the Asian

market, and the recent decisions of European countries including France, Germany and the U.K. to join in the China-backed Asian Infrastructure Investment Bank, despite U.S. disapproval, show their grasp of this reality. These ambitious initiatives have interesting implications for the project logistics trans-portation industry.

The Silk Road Economic Belt and the 21st Century Maritime Silk Road initia-tives, to give them their official titles, were first proposed in 2013 by Chinese President Xi Jinping. China’s envisioned “belt” is a land-based path of road and rail that crosses Eurasia from China to Turkey, loops up through Eastern Europe to Moscow and then down through Western Europe to Rotterdam and Venice.

The maritime “road” knits together China, Southeast and South Asia, the Indian Ocean, East Africa, the Middle East and the Mediterranean.

Precisely how China’s ambitions will be achieved remain to be seen, but earlier this year Beijing began preparing a raft of new free trade agreements and RMB off-shore clearing centers that included the UK, Germany, France and Canada, according to global reports. Overall investment and trade in the Silk Road idea has trillion-dollar potential.

Meanwhile, China’s slowing economy means it has a wealth of idle capacity to export. Building roads, ports, rail, pipelines, air and Internet connections across South-east Asia, the Middle East, North Africa and Europe would use up a lot of its not-so-busy steel, manufacturing and construction industries. China appears ready to pour its billions into willing trade partners, naming hungry Greece, for example, as potential EU bestie and continental gateway.

Will China favor Chinese project trans-port providers as this vast project unfolds,

SILK BY LAND, SILK BY SEA

“China appears ready to pour its

billions into willing trade partners.”

By Janet Nodar

30 Years ofLighting the WayThere’s a big reason RTM has been a trusted name in trans-ocean

transport and logist ics for more than three decades. I t ’s our unique

door to shore approach to cargo management plus our fr iendly

personal ized service that’s been a hal lmark of our company since

the beginning. And whi le we’re proud of our heri tage we’ve set a

course for a bold new future including a new look to our brand, a

beauti ful new website and renewed dedicat ion to offer the

industry’s most competit ive rates.

Experience the new RTM Visit us today at www.RTMLines.com

For peace of mind and expert guidance for all your ocean

transport needs, always look for the lighthouse.

RTM. SAFELY. SWIFTLY. SECURELY. EST 1980

Vis i t www.rtml ines.com or

emai l solut ions@rtml ine.com

For compet i t ive rates:

Cal l 1.800.847.SHIP

B R E A K- B U L K . C O N TA I N E R . H I G H A N D H E AV Y . P R O J E C T . R O / R O

She is all yoursNew vessels are enhancing our fleet. The state of the art M/V Wedellsborg has arrived and is now flying the Nordana flag. With the introduction of these new ves-sels you can rely on larger and faster vessels, running an even more precise schedule, to support and benefit your business.

Our new vessels are equipped for self-sufficient operation, they have 30% larger capacity, and they are spe-

cifically designed for the challenging demands of to-day. With this investment in our fleet, Nordana is ready to cover your individual transportation needs, both now and for many years to come.

For more information about our new vessels, and Nordana in general, visit www.nordana.com.

Together we bring your business ahead.

NORDANA LINER SERVICE. PROJECT SERVICE.nordana.com - part of WECO GROUP

Rosenstand & Kyllebæk

Documents

Breakbulk Magazine March/April 2015