by & filed under Bridging R&D and implementation.

In March, MTBS (Maritime & Transport Business Solutions), local partner Interlegal and other consortium partners, started the feasibility studies and transaction advisory services for two pilot port concession projects in Ukraine.

The main stakeholders are the Ministry of Infrastructure of Ukraine, Ukrainian Seaport Authority (USPA), the Ports of Olvia (former Oktyabarsk) and Kherson, the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).

The project, which was initiated at the end of 2017 through the signing of a memorandum of cooperation between USPA and the EBRD, aims to develop the Ukrainian port infrastructure by attracting private sector investments through modern port concessions.

The first pilot concession project concerns the State Enterprise Stevedoring Company Olvia, which is strategically located near the largest metallurgical and agricultural products producers in the southern region of Ukraine near the Black Sea. The port performs cargo handling services for all types of commodities with the exception of containers. The second pilot concession project concerns the Kherson Commercial Sea Port, which is located near the mouth of the Dnipro river. The port of Kherson is specialized in the handling of bulk and packed chemical and mineral fertilizers.

The full feasibility study builds upon the preliminary viability assessment, which was successfully finalized in May 2017. During the preparation of the tender, the consortium, which consists of legal-, technical-, and financial advisors, will evaluate different public-private partnership structures for both pilot concession projects.

The project aims to sign two concession agreements prior to the Presidential Elections in March 2019.

Source: PortSEurope

by & filed under Port infrastructure.

Thessaloniki, Greece (PortSEurope) May 24, 2018 – Thessaloniki Port Authority SA (ThPA) has tendered for a contract to overhaul port straddle carriers with an option to add additional equipment.

The deadline for offers is September 30, 2018. Terminal Link, as partner and shareholder, signed a management agreement with ThPA to support and optimize the development and the expertise of the Container Terminal.

ThPA is operated by South Europe Gateway Thessaloniki Limited which purchased 67% of ThPA in March 2018, as part of a government privatization process.

SEGT consists of a consortium of Deutsche Investment Equity Partners, a German investment fund; Terminal Link, an international Terminal Operator (a joint venture between CMA CGM Group and China Merchant Group) and Belterra Investment Ltd, a strategic investment company, investing in Northern Greece.

 

Source:PortSEurope

by & filed under Port infrastructure.

In January-March 2018, rail traffic connecting Pier VII with Italy and Europe increased by 65%, in relation to volumes.

Budapest and Burghausen routes saw substantial increases in traffic handled, mainly due to the strengthening of the Hungarian service and the optimization of the second weekly rail connection with Burghausen, Upper Bavaria, which began in March this year.

As regards the terminal, the growth is 11% compared to April 2017 and 8% comparing the TEUs moved in the first two quarters: 176,407 in 2017 and 190,742 in 2018.

Pier VII is operated by Trieste Marine Terminal SpA (TMT).

 

Source: PortSEurope

The Belt and Road Initiative (BRI) is a development strategy proposed by the  Chinese government that focuses on connectivity and cooperation between Eurasian countries, primarily the  People’s Republic of China (PRC), the land-based Silk Road Economic Belt (SREB) and the ocean-going Maritime Silk Road (MSR), since 2013.

Source: Mercator Institute for China Studies

It aims to improve the slowed-down China’s growth and strengthen its leadership role in the world by connecting China to countries in Europe, the Middle East and elsewhere over large infrastructure projects which cover nearly 70 countries.  the Belt and Road are actually six routes across central Asia and South Asia and one maritime route from the South China Sea through the Indian Ocean ending at the Suez Canal.

China strategy for Arctic shipping lanes opened up by global warming

 As a result of human activities’ impacts on the earth ecosystem, global warming and climate change created. Global warming always has been seen as a threat to our societies, but it surprisingly creates some opportunities too! As an example, Arctic has become viable for shipping routes with great potential to contribute to the international maritime transport. As a result, the north-east Polar passage offers China a faster sea route as it would shave almost 20 days off the current time through the Suez Canal traditional route.

On January 28, 2018, China published the Vision for Maritime Cooperation under the Belt and Road Initiative which emphasized on the Arctic as one of the priorities. The Policy states that China is developing to build a “Polar Silk Road” together with Arctic coastal countries, particularly  Russia. It draws a picture about objectives, guiding principles and actions of Chinese contribution to the Arctic affairs.  The Polar Silk Road is planned to connect with the Eurasian Economic Union.

China’s Polar Silk Road Policy:  Conflict or Synergy?

The Vision declares the future Chinese development goals in Arctic region, including commercial, scientific, environmental preservation, and resource extraction activities along the Chinese Arctic interests with the Belt and Road Initiative (BRI). For this purpose, the Chinese companies and enterprises have been encouraged to invest in building infrastructure in the Arctic routes and carry out the commercial voyages to pave the road to form the “Polar Silk Road”. Furthermore, this Chinese strategy keeps an eye on the development of gas, oil, mineral resources and other non- fossil energies, the fishing industry and tourism. It gives the guidelines to have joint economic cooperation with Arctic States, meanwhile respecting their cultures and preserving Arctic natural environment. In other words, it stresses the “peaceful utilization” of the Arctic under multinational treaties such as the United Nations Convention on the Law of the Sea (UNCLOS).

China has been active in the Arctic region over the last decades. An example is its first Arctic research station,  Yellow River, in the Norwegian archipelago of Svalbard in 1999, and Chinese icebreaker Xue Long (Snow Dragon) which sailed across the Northern Sea Route along the Russian coastline in the summer of 2012. Later in 2017, the research vessel Xue Long became the first Chinese ship to navigate the three major Arctic shipping routes: The Northwest Passage, Northeast Passage, and Transpolar Sea Route. The Chinese borders have not extended to the Arctic, to have direct influence in Arctic activities and regional policies. However,  China is one of 13 “observers” to the Arctic Council since 2013 after two failed attempts.

The research icebreaker Xue Long – the first Chinese ship to navigate the three major Arctic shipping routes.

Source: Photo: Xinhua

The Arctic shipping routes, particularly the Northern Sea route, are called “blue economy corridor” due to saving in costs and time for connecting Western Europe and China.   In 2013, Chinese shipping company COSCO sailed the first-ever multipurpose ship through the Northern Sea Route. In addition, in 2015,  five COSCO vessels sailed through the icy route, which is a record for this company. In 2015, Chinese banks lent $12 billion to the Yamal liquefied natural gas (LNG) project, which lies in the middle of the Northern Sea Route and is expected to supply China with four million tonnes of LNG a year, according to the state-run China Daily. Furthermore, China building Arctic cruise ship for Polar Silk Road which is its first polar expedition cruise ship expected to be completed by August 2019.

China cannot physically claim Arctic territory, but it can buy stakes and influence the energy, commercial, and geopolitical benefits. The benefits can be listed as follows:

First, the region estimated to account for energy natural resources of approximately 13 and 30 percent of the world’s undiscovered crude oil and natural gas accordingly.  Second, is the attraction of shipping routes as the two paths of Northwest Passage (NWP) and Northeast Passage (NEP), as the introduce quicker substitutes to connect both European and North American energy and goods to China. A third Arctic passage, the Transpolar Sea Route, as shown below, cuts through the Arctic between the NWP and NEP through international waters but can only be accessed by the heaviest icebreaker ships. See the below figure.

Source: Arctic Council

The third benefit comes from enhanced security in shipping. The ability to transport goods and materials through Arctic waters provides an alternative trade lane that replaces as an alternative to the maritime choke point at the Strait of Malacca, as well as other pirate-infested waters in the Indian Ocean and the Red Sea. Lastly, China can strengthen its geopolitical, political and geoeconomic posture by its more active commercial presence in the Arctic.

Challenges for the proposed Chinese Arctic Initiative

China claims to have the right to sail the Polar route under the United Nations Convention on the Law of the Sea (UNCLOS), which clearly allows freedom of navigation in international waterways. However, it is really ironic, as China rejected the international Permanent Court of Arbitration statement about China violating the UNCLOS in the South China Sea!

China’s increasing activities and dominance in the Arctic region has raised the concerns of Arctic coastal states over its long-term strategic goals, as well as possible military deployment. In addition, it has caused some environmental concerns. As the Arctic is a very environmentally sensitive region, any projects backed by foreign states need to guarantee the protection of the Arctic environment. It is therefore important to examine the BRI in the Arctic from an environmental perspective. China specifically promised the Arctic Council to protect the environment, protect the ecosystem, and address climate change.

Furthermore, the Arctic Council argues the requirements of shipping in the region such as lack of communications, charts, sufficient search and rescue (SAR) response, and also the environmental response to events such as oil pollution from tankers. On the other side, China has asked contribution to Arctic affairs like conducting scientific surveys on navigational routes, establishing land-based stations, execution of research on climatic and environmental changes in the Arctic and to increase cooperation with coastal states in clean energy.

Russia is partly keen for Chinese investment in its infrastructure because capital from the West has remarkably reduced. However, some Russians politicians consider China’s plans more suspiciously. They concern that China ignores that Russia should exercise full control over shipping along the Northern Sea Route. Nevertheless, China has not shown any interest in challenging Russian jurisdiction in the Northern Sea route and is willing to follow Russian. Moreover, Chinese ships are generally responsible and are not known to cause environmental disasters. The one Belt and one Road Initiative, therefore, appears to be in synergy with China’s Arctic Policy when it comes to Arctic transport.

Author: R.Karimpour

Shipping has been an important human activity throughout history, particularly where prosperity depended primarily on international and interregional trade. According to the International Maritime Organisation (IMO) statistics in  2017, shipping has an essential contribution to the world economy since more than 90% of the world’s trade, in volume,  is carried by sea. In a broader perspective, transportation has been called one of the four cornerstones of “globalization”, along with communications, international standardization, and trade liberalization.

According to the World Bank, the best four logistics performers are from the EU and out of the global top10, 7 of them are from the EU in  2016. Maintaining the current European world leadership in logistics is crucial for the European economy and citizens’ future.  Furthermore, according to the Alliance for Logistics Innovations through Collaborations in Europe (Alice) in 2018, the EU is the globally largest exporter and biggest trader of goods and its competitiveness of industry sectors relies heavily on the performance of freight transport and logistics. It is estimated that a 10% to 30% improvement in efficiency in the EU logistics sector has the potential equal to € 100 – 300 billion cut in costs for the European industries with consequent reduction of 15% to 30% in CO2 emissions.

The slowed-down in economic growth of China and global trade have pushed the ports and logistics firms to develop their investments in new technologies and innovations of information and communications technology (ICT). The ports and logistics sector has already used new technologies to a certain extent but five innovations have recently gained uprising significant attention in this sector: automation, autonomous transport, big data, simulation and virtual reality, and Blockchain. (See Fig.1). In the next years port and logistics will encounter more substantive changes as automation becomes dominant and operations are directed in real time by a wide range of sensors and intelligent software.

Figure 1. Five  ICT innovations with the highest impact on ports and logistics.

Source: Produced by Author

  1. Automation 

Logistics automation and robotic operation is the application of computer software and automated machinery and equipment to enhance the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution centre, with broader tasks undertaken by supply chain management systems. According to Adam Robinson in 2013There are six major benefits of applying Logistics Automation in transport management system: 

-The decrease in Costly Errors

-Availability of Transportation Mode Choice and Real Time Freight Rates

-Increased Customer Service

-Access to Real Time Freight Data and Analysis

-Organizational Control

-Scalability and Speed

In recent years, there has been a steady rise in automation at European ports, and automated equipment, produced by firms such as Kalamar, are currently available for many terminal functions like ship-to-shore berthings, straddle-carrier ground transportation, the management of container stacks,  and also trucks loading.  A number of this automated equipment can run quite autonomously, while the other ones use remote operators in a safer and more comfortable place. Software and sensors are utilized widely for monitoring the practices, which results in an optimised smooth flow of goods through the port, with related savings in time, fuel/cost,  and personnel.

  1. Autonomous transport (vehicles)

Development of autonomous means of transport, across land, air and sea, has recently gained substantial attention and have implications for ports and logistics firms. Already there are special autonomous trucks within ports to move containers. There are advantages of investing in driverless vehicles. Safer transport is at the main focus as research shows that up to 90% of road traffic accidents are originated from human errors by the drivers. Furthermore, autonomous systems always monitor and adapt to varying traffic and weather conditions, and doing all this with more speed, and safety than human drivers. It increases the efficiency of transport while lowering the environmental impacts due to less fuel consumption.

In the air section, the application of small drone copters used as package carriers, by companies like  Amazon, is a big step in the last mile of the logistics chain. DHL and Google are also leading companies. In the maritime industry, the Rolls-Royce estimates a reduction of fuel consumption by up to 20%. As a result of the elimination of accommodation on a crewless vessel, overall operating expenses will be cut by around 40%. KONGSBERG is also developing autonomous/unmanned / self-driving ship control systems. Kongsberg projects have a focus on integrated sensor technology, and automated collision avoidance. Figure.2 shows some examples of autonomous vehicles across the medium of air, land and water.

Figure 2. Autonomous vehicles in operation

Source: Produced by Author

  1. The Big data

Today, the world is highly hyper-connected. The experience from successful Internet powerhouses like Google, Amazon, eBay, and Facebook leaves no doubt that information has become an essential element of competitive differentiation. Firms and companies in different industries have put their efforts to have accurate data-driven insight in order to achieve effective decision-making and successful businesses. Therefore, for companies, the purpose of handling a high volume of data at high speed is to capitalize an additional value from the bulk of data.

In logistics, the major part of this data is produced by the growing number of robots and automated equipment and processes. The recent advanced and cheap sensors allow the firms to track the goods and measure the activities. These sensors make the equipment of the ports and the cargo in a warehouse enable to be “connected and linked”, as part of a wider network of the Internet of Things (IoT). This is one of the most important aspects of the Big data. The IoT means the wide increasing range of physical objects, or “things”, that are linked to a network for sending and receiving data. in logistics, the examples could be the sensors that monitor a reefer containers’ temperature.

However, for a successful application of the IoT, an effective communications systems is to be established. This is more crucial for ports, where containers and equipment can be obstacles for signals. Similarly, at indoor places such as warehouses, Global Positioning Systems (GPS) usually is not used so that other technologies like RFIDs are needed. Network infrastructure at the ports needs to be adequate for the high bandwidth and use cybersecurity for the purpose of IoT applications.

Figure 3. Internet of Things value chain

Source: University of Antwerp,(2017)

Some ports in South East of Asia like Singapore have already leveraged big data techniques to create intelligent inspection systems. These smart systems review and assess the importers’ histories and background, regarding the cargo type,  in order to identify those which are more suspected for inspection, to ensure a fast and smooth flow of the goods without impacting on the security objectives.

  1. Simulation and virtual reality

The availability of a wide range of big data applications will lead to opportunities for port operators, logistics firms, and service providers to take advantages of simulation software. In this respect, different port operations could be modelled to analyze operational flows, identify the possible barriers, and evaluate various scenarios of design and throughput. The simulation will play a more important role when the automated equipment and robotic machinery are used in port and logistics sector. This help understanding the impact of these technological developments as well as how to integrate them into terminal processes and operations.

 

For an efficient synchronization of port and logistics activities through simulation, a technology that will support a lot is virtual reality (VR). It assists via expansion of physical reality by adding layers of computer-generated information to the real environment, to support such operation simulations. In a port atmosphere, it can be achieved by visualizing enhanced feeds from infrastructure, port equipment, automated vehicles and various types of drones.

       5.Blockchain

 Marc Andreessen defined the Blockchain in simple words as “The practical consequence […is…] for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.”

The blockchain comprises an enormous database running across a global network of independent computers that are collaboratively maintained by distributed participants. The main difference with data exchange methods is that in Blcokcahin there is no unit in the supply chain creating “islands of data”.( See Fig.4 & 5).

Figure 4. Current data exchange in the carrier process

Opposite to the “islands of data”, the  Blockchain is structured on a decentralized and distributed nature, that continuously validate each transaction between all parties and sequentially record those in public “blocks”. The created reference codes allow each node in the network to have access to the transactions to which they are authorized to refer. (See Fig.5). Based on its typical natures, the blockchain features can provide added value to port logistics and port digitalization. It is about to establishing trust, secured data provision, visibility, networking, and integration of supply chain elements and actors.

Figure 5. Blockchain typical information flow in the carrier process.

The blockchain technology is expected to support both the port services and logistics while enhances the efficiency of the supply chain process. However, there are challenges for the implementation of Blockchain such as logistics stakeholders awareness on the benefits of blockchain technology. Furthermore,  a blockchain IT system must be clearly understood prior to its implementation in port and logistics entities.

For this purpose, the port authorities are key players. They can play a role as facilitator to boost a specific network. They may also provide a situation to bring stakeholders together while taking on a managerial and coordinating role in the integration of different Blockchain applications. By paving the way for the transition path for companies and logistics actors, they will contribute to the digitalized future of the ports.

Authors: R. Karimpour, M.Karimpour

EU support for a CO2 emissions reduction target for the shipping sector as well as potential short, mid, and long-term reduction measures has been backed by the European Sea Ports Organisation (ESPO).

 

The reduction target and measures being discussed are for inclusion in the International Maritime Organization’s (MEPC 72) Initial GHG Strategy, which is anticipated to be adopted this month. Once adopted, it will be the contribution of the shipping sector to the Paris Agreement and together with all other national reduction commitments, it will be tested whether it is fit for purpose at the “stock-taking” meeting planned later this year.

 

Timely action

ESPO’s Secretary General, Isabelle Ryckbost, said: “The Initial GHG Strategy will allow shipping to take part in the stock-taking meeting under the Paris Agreement in 2018. We need global action but we need it on time. There is a sense of urgency in order for the sector to contribute to the Paris objective to keep the increase of global temperature well below two degrees.

“We hope that the EU position will be well received and will be considered by the negotiators as a constructive contribution to finalizing and adopting the Initial IMO GHG Strategy next week. It is good to see that it is already receiving some support on the shipping side as well.”

The EU and national climate measures that are currently being developed to implement the Paris Agreement oblige ports to reduce the carbon footprint of their land-based activities. In parallel, European ports aim to facilitate the decarbonisation of shipping by providing green services, where possible. Under the EU Alternative Fuels Infrastructure Directive, LNG bunkering facilities and On-shore Power Supply should be provided in ports of the TEN-T core network by 2025.

 

Source: Port Strategy

by & filed under Governance.

A new Organisation for Economic Co-operation and Development International Transport Forum report argues ports need to develop more and smarter incentives to meet the International Maritime Organisation’s greenhouse gas (GHG) targets for the shipping sector

 

Reducing Shipping Greenhouse Gas Emissions: Lessons From Port-Based Incentives includes a global summary of 28 ports with environmentally-based port fees and stresses that currently, there is very limited information available on the impact of port-based incentives and significant positive effects of incentives are limited. Author Olaf Merk concluded: “It is fairly safe to say that the effectiveness of port-based incentives to reduce maritime GHG emissions remains pretty marginal.” However, he added that wider application of the principles behind the measures “could have huge potential” and incentives could have more impact if they “were wider applied, if the financial incentives were larger, if the schemes stimulated technological innovation, if schemes focused on carbon, and if they could become more harmonised.”

 

Unseen benefits – Looking at green port fees, he said that a “fairly marginal share” of the ships calling at ports with green port fees actually get a deduction of the port fee.

The impact of green port fees on shipping’s GHG emissions is negligible, as the indicators in which CO2 emissions have substantial weight (CSI and RightShip) are only used by five ports, Mr Merk stated. Plus, there is a need to apply the polluter principle via a system of environmentally differentiated port fees, applied to all ships, not just a rebate for the greenest ships.

 

More focus needed – The report pointed out incentives could be aligned more closely to actual GHG emissions from ships. None of the green port fees takes actual GHG emissions as a base for the fee reduction currently. As most shipping companies use a network of ports, the effect of a green port fee would be much higher if all ports in the network applied it, Mr Merk said.

“An effective mechanism might consist of a harmonised index or score assigned to all ships, taken as the basis in all ports for a differentiated port fee, and used by shippers in their reporting on the carbon footprint of their supply chain,” he stated.

 

Vessel speed reduction schemes for ships near port areas are generally considered to be effective instruments found in the report. The participation from shipping companies has been very high: according to the Port of Long Beach Compliance Report for the year 2016.

Green berth allocation virtual arrival policies could also bring large benefits in terms of emission reductions.

 

Source: Port Strategy

by & filed under Bridging R&D and implementation.

3D printing or additive manufacturing is defined as a process in which the material is joined or solidified under computer control system or software to create a three-dimensional object from a digital file. In this process, an object is created by laying down layers of material until the object is created. These layers can be seen as a  sliced horizontal cross-section of the eventual object. 3D printing enables to produce complex shapes precisely using less material than traditional manufacturing methods.

Working in partnership with Damen Shipyards Group, RAMLAB has manufactured the world’s very first 3D-printed ship’s propeller, which successfully passes all required quality tests. Having completed the prototype, the lab will continue with the development of a second propeller that will actually be installed on a tugboat in the near future.

 

Source: Port of Rotterdam

The propeller, which weighs 400 kilograms and has a 1.30-metre diameter, forms a milestone in on-going efforts to master this relatively young technology. “A metal printer adds the material layer by layer, which means that the end result’s characteristics differ from those of a conventionally cast ship’s propeller,” says Kees Custers, who works as a project engineer at Damen’s R&D department. “The propeller was printed with a nickel, aluminium and bronze alloy.”

Port-related sector
The Rotterdam Additive Manufacturing LAB (RAMLAB) is the first 3D printing field lab that specifically caters to the port-related sector. In due time, RAMLAB will be able to produce replacement parts in a matter of days with the aid of 3D metal printers (in a process also known as additive manufacturing). At present, a replacement part often takes months to fabricate. RAMLABG, which is located at RDM Rotterdam, is an initiative of the Port of Rotterdam Authority, InnovationQuarter and RDM Makerspace.

 

Source: Port of Rotterdam

by & filed under Port infrastructure.

Work has begun on the conversion of the trailing suction hopper dredger (TSHD) Samuel de Champlain, which will become Europe’s first LNG-fuelled dredger.

The vessel is being converted from diesel-electric to dual-fuel propulsion at Damen Shiprepair Dunkerque. Steel has been cut for the prefabrication of a new section of hull that will hold the new generators and other equipment. The hull block is currently being prefabricated in DSDu’s workshop and will be installed later this year. At the steel cutting ceremony Mark Jan van den Akker, CEO of Damen Shiprepair Dunkerque, noted that LNG has an important role to play in the movement towards lower emissions, and that the conversion of conventional diesel vessels to dual-fuel is a viable option. The Samuel de Champlain is the first such conversion to be performed by Damen Shiprepair Dunkerque.

The conversion is part of an EU-supported initiative to promote LNG propulsion in short-sea vessels operating along the European Atlantic coast and is being made possible by a subsidy from the European Commission’s Innovation and Networks Executive Agency (INEA) via its Connecting Europe Facility programme. The converted vessel will divide its time divides her time between the Loire and Seine estuaries of Nantes Saint Nazaire port and is expected to be operational by December.

 

Source: Motorship

by & filed under Environment.

DNV GL is to class two LNG-fuelled cruise ships to be built by Meyer Turku for Royal Caribbean, the first in the cruise line’s new Icon class.

The two vessels, due for delivery in 2022 and 2024, feature several cutting-edge technologies designed to reduce environmental impact, including dual-fuel engines, fuel cell technology and air lubrication to minimise hull friction.

Knut Ørbeck-Nilssen, CEO, DNV GL – Maritime, said: “These ships are set to push the envelope of what we can expect from a modern cruise vessel in terms of environmental performance, and we are looking forward to supporting Royal Caribbean and Meyer Turku to realise a successful delivery.”

The final concept for the first vessel is currently being discussed and the concept design phase is expected to start in the coming months. The initial building phase of the first ship will begin next year, with keel laying planned for October 2019.

 

Source: Motorship