by & filed under Bridging R&D and implementation.

‘MSC Seaside’ has put down a new marker for Italian design and construction as her Swiss-based owner rolls out an ambitious and innovative, 10-year fleet investment programme.

As the world’s most prolific builder of cruise vessels, Fincantieri has reached a new milestone in its unerring business drive by delivering the largest ship constructed in Italy to date. At 323m in overall length, the 153,500gt MSC Seaside has a capacity for a maximum of 5,119 passengers and constitutes a further advance in design and technology in one of the most sophisticated fields of commercial shipbuilding. On the occasion of the November handover ceremony for MSC Seaside at the Monfalcone yard, near Trieste, where sistership MSC Seaview is nearing completion, MSC Cruises extended its contractual commitments with Fincantieri by signing for two newbuilds of still greater size and capacity, dubbed the Seaside EVO class. Privately-owned, Geneva-based MSC Cruises ranks among the industry’s fastest growing brands, with a total of 12 ships costing EUR10.5bn (US$12.9bn) planned for introduction between 2017 and 2026. All the tonnage has been contracted from Fincantieri and the premier French shipbuilding organisation STX France, in which the Italian group is acquiring a 50% stake. MSC Seaside is the second delivery under the programme, following the handover of the Saint Nazaire-built MSC Meraviglia earlier in 2017.

MSC Cruises ranks as the market leader in European cruising, as it is also in South America and South Africa, but the €700m (US$863m) MSC Seaside is pivotal to the owner’s strategic drive to build a strong presence in the USA.

STRATEGIC DRIVE

Through the year-round deployment of MSC Seaside out of Miami, alongside an existing fleet member, the 139,400gt MSC Divina, the company has realised a major stage in its US market and Caribbean cruise business investment plan. This also embraces the creation of a private island destination and resort, Ocean Cay in the Bahamas, due to be ready by 2019. The long-term commitment to cruising from southern Florida is expressed in the recent renovation and expansion of Miami’s Cruise Terminal F to serve the company’s ships, implemented following an agreement between MSC Cruises and port operator Miami-Dade County.  The brand’s profile will be raised further in 2019 by the transfer of the 171,600gt MSC Meraviglia from the Mediterranean to the US for Caribbean cruising.  MSC Seaside started her regular schedule of seven-night eastern and western Caribbean itineraries towards the end of December 2017. Although the ship’s market allure lies in the wealth and nature of her passenger facilities coupled with new approaches to interior and outboard design, the vessel is a showcase for environmentally-attuned engineering, including exhaust ‘scrubber’ plant, waste heat recovery, advanced water treatment, seawater-lubricated bearings, LED lighting, and optimised hull lines, propellers and rudders to reduce drag and energy consumption.

The basic design concept is unusual and is a product of the need to balance an efficient hull form with a large internal volume and good weight distribution. Fincantieri suggests that the vessel blends cutting-edge marine technology with a design that revisits fundamental aspects of layout in classic transatlantic liners. In striving for a well-balanced overall weight distribution, the engine rooms, uptakes and funnel casing have been located amidships. The resulting configuration, centre of gravity and centre of buoyancy have a beneficial influence on hydrodynamics. Space for tanks both fore and aft enables the ship to keep a better trim while bunkers and water are gradually consumed. The nature of the design layout reduces the hull bending moment, permitting a more efficient, lower weight steel structure.

 

OPEN DECK SPACE

Public spaces cover 46,000m2, with an exceptionally high proportion accounted for by outside areas, amounting to 14,000m2. The Genoese firm De Jorio Design International was entrusted with the interior and exterior design. A key aim has been to maximise external spaces and facilities, in accordance with MSC Cruises’ objective of “bringing guests closer to the sea”.

Whereas the majority of open deck space in large cruise ships tends to be on the uppermost deck areas, effectively distancing passengers from the sea, MSC Seaside has a seven-metre-wide deck at a much lower level going all around the ship and known as the Waterfront Boardwalk. This substantially increases the amount of open space per passenger while fostering closer contact with the sea environment. In addition, there is a high degree of continuity between outside spaces and inside public areas. One of the clearest expressions of innovation is in the architecture aft, styled as a ‘beach condominium’ inspired by the Miami waterfront, and featuring two panoramic glass elevators directly connecting the lower and upper decks. At the aft end of Deck 16, the glass-bottomed Bridge of Sighs forms a semi-circular structure extending out over the deck. The outdoor theme is also manifested in glass-floored catwalks on both sides of Deck 8. As with the owner’s entire cruise ship fleet, the electrical propulsion solution for MSC Seaside was provided by GE Marine, in its role as leader of the Italian project consortium responsible for powering arrangements. GE technology employed has included propulsion control, four 12.8MVA main transformers, variable frequency drive (VFD) core components, two synchronous, slow-speed propulsion motors and distribution transformers.

 

ELECTRIC PROPULSION

GE said that its system has eliminated the need for harmonic filters and reactive power consumption and therefore offers improved safety among other benefits. It is claimed to also ensure a less complicated installation and cabling process, and result in a reduced overall weight and simpler maintenance. The four main diesel generators are driven by Wärtsilä 46F-series medium-speed engines, whereby two of the aggregates are each powered at 16,800kW by 14-cylinder models, and two are fitted with 12-cylinder units delivering 14,400kW, such that the plant has a combined maximum continuous rating (MCR) of 62.4MW at 517rpm.

A total 40MW can be directed to main propulsion, whereby 20MW is exerted on each shaft through the GE electric motors, turning fixed pitch propellers at 123rpm. Due to the midships position of the propulsion motors, the shaft lines are longer with more support than on most ships. The propulsion system has been dimensioned to ensure a maximum speed of 21.3 knots. The considerable array of manoeuvring thrusters comprises four tunnel thrusters forward and three aft, each of 3.1MW. The duplication and distribution of primary machinery and associated systems in two main engine rooms confers redundancy and creates the basis for ensuring compliance with Safe Return to Port (SRtP) requirements. Two-hybrid scrubbers are installed in the forward engine room, providing the ship with the means to ensure compliance with the forthcoming global sulphur cap while continuing to burn heavy fuel oil (HFO). Supplied by Wärtsilä, the systems are used in open-loop mode at sea and closed-loop operation in harbour, with the wash water, then treated and held in shipboard tanks giving a 14-day storage capacity.

 

FUEL SWITCHING

An automatic changeover procedure from HFO to marine gas oil (MGO), drawing the fuel from separate, dedicated tanks, is activated when the ship enters an Emission Control Area (ECA).

The twin-screw MSC Seaside has water-lubricated propeller shaft bearings, obviating the pollution risks of leakage from an oil-based system. The system comprises six Compact bearings in bronze carriers, with tapered keysets sized for the 664 mm shaft diameters. In addition to the environmental protection afforded, seawater-lubricated shafts are claimed to offer advantages as to bearing wear life predictability and reliability, easier installation and lower maintenance costs. For Compact systems used with shaft diameters of 300mm-plus in commercial new builds, Canadian manufacturer Thordon Bearings now issues a 15-year propeller shaft bearing wear life guarantee.

The cruise industry’s acknowledgement of the scope offered by individualised technology for improving or enhancing the cruising experience is demonstrated by several operators’ recent investments in passenger-assist devices such as those incorporating geo-location and facial recognition. MSC Cruises is to the fore in this sphere, and MSC Meraviglia provided the debut for the company’s digital innovation programme, MSC for Me, devised in cooperation with a number of leading digital, technical and behavioural science experts, including Deloitte Digital, Hewlett Packard Enterprise, and Samsung Electronics. MSC Seaside is the second reference for the technology, which is to be rolled out across the fleet. The host of ‘smart’ features on offer, using the MSC for Me app, includes an interactive digital navigator that helps guests find their way around the ship, access information about different onboard areas, venues and excursions, make bookings and service requests, and allow parents to geo-locate their children on the vessel, using smartphones, tablets, computers, stateroom TVs, interactive screens and ‘smart’ bracelets. The app also employs ‘intelligent’ facial recognition to help staff in passenger-related duties. MSC Seaside is the company’s 14th addition to the fleet and the second delivery of 2017 after the completion by STX France of the MSC Meraviglia.

 

Source: Motorship

 

by & filed under Digitalization.

Maritime Supply Chain is one of the key sectors for digital transformation. With its high degree of networking and its large number of interfaces, maritime supply chain offers a broad range of applications for digital technologies. Stakeholders across the supply chain see huge potential to improve maritime and port service level and efficiency by having more collaboration and integration.

This was a subject of a round table organized during the 28th year KEDGE Business School Global Supply Chain Management ISLI Forum (March 30, 2018), an event that gathered more than 300 supply chain leaders.

Following the Round table, and thanks to the active participation of Dominique Lebreton (Executive board of MGI), Romain Cordon (Founder of Shiptify) and Luc Castera (Founder & CEO of Octopi) PortEconomics member Pierre Cariou supervised a White Paper that has just been released, written by ISLI students (Kenza Karzazi, Jing Da, Pranov R Krishman and Do Tri Hiep) on Toward Digitalization of Maritime Supply Chains.

 

Source: PortEconomics

 

The portgraphic shows the changes in container throughput in European ports between the pre-crisis year 2007 and last year. We use absolute growth figures in TEU. The total container throughput in the entire European container port system increased by some 17 million TEU between 2007 and 2017, but not all ports saw traffic gains. Hamburg’s volume in 2017 was still 1.07 million TEU below the 2007 volume. Among the losers, we also find Med hubs such as Gioia Tauro and north European ports that were hit hard by the rather recent reshuffles in container alliances (e.g. Thamesport and Zeebrugge). Constanza’s volume drop is mainly caused by the move of the transhipment hub function from the Black Sea to the Med. Taranto and Amsterdam are ports which used to play a role in the deepsea business in 2007, but in the meantime have completely lost that function.

Among the major winners, we find the top two container ports in Europe, i.e. Rotterdam and Antwerp. They both recorded a TEU growth of 27 to 28% between 2007 and 2017, which translates into an absolute growth of 2.94 million TEU for Rotterdam and 2.27 million TEU for Antwerp. With a TEU growth of nearly 2.7 million, Cosco-owned Piraeus port saw the strongest traffic rise in the Med. Also, major Med hubs such as Valencia, Algeciras and Marsaxlokk (Malta) saw a strong boost in TEU volumes. Newcomers Sines in Portugal and Gdansk in Poland each added about 1.5 million TEU to their volume base in the past ten years. Genoa, the number one Italian gateway port, and Bremerhaven complete the top 10 list of winners.

 

Source: PortEconomics

Before going into the specifics about the potential impacts of automation of maritime shipping, it is important to underline that although automation can be solely considered at the port terminal level, it also takes place across entire supply chains.

The fourth industrial revolution: The big picture of value chains

Actors usually optimize the systems they can control and benefit from, but a common mistake is not to consider the larger impacts of the technologies they are using, both upstream and downstream of their value chains. The impacts of automation on port activity may be more significant on the activities that drive port volumes, such as manufacturing, than on port operations.

For instance, on the following figure terminal automation is but one change taking place within the fourth industrial revolution framework. Looking at logistics, there are also significant changes in procurement, fabrication/manufacturing, other elements of distribution (e.g. warehousing) as well as marketing (e.g. e-commerce). The question remains in which way all these changes are going to impact the demand structure of global freight distribution and how terminal automation fits into this picture.

E-commerce (the automation of retail): Lessons for maritime shipping and ports?

The impacts of e-commerce, a form of supply chain automation, on the retail ecosystem have been far-reaching. Using e-commerce as an analogy, the following impacts can be expected over maritime transport systems:

  • Shipping networks. E-commerce changed the pattern of freight distribution with the growth of parcel deliveries and the resulting shift in last-mile logistics (urban deliveries). For maritime shipping, would (terminal) automation lead to a segmentation of services between highly automated terminals that can handle the high volumes and frequency requirements of mega-ships and less automated terminals focusing on secondary services? This could be particularly significant for transshipment hubs.
  • Terminal footprint. E-commerce reduced the real estate footprint of retail as some of this footprint switched to distribution centers. Could terminal automation lead to a declining global footprint of container terminals, particularly if we enter a low growth environment? This could incite a rationalization of terminal assets and in some cases the closure of terminals, particularly in multiterminal ports where automation leads to higher capacity than required.
  • New types of terminal facilities. E-commerce resulted in the creation of entirely new types of freight distribution facilities, such as e-fulfillment and sortation centers to coordinate its logistical requirements. Automation is changing operations and the configuration of container terminals, which is likely to lead to new terminal designs and interactions such as terminal / satellite facilities pairs.
  • Vertical integration. Large e-commerce firms are trying to get involved in several segments of their supply chains, particularly to have a better level of control on the performance of their distribution. Since terminal automation results in a higher level of integration along the transport chain, particularly through the information technologies, it relies on, in which way this will shape the formation of new relations between carriers and their customers and even the possibility of new entrants?

E-commerce is thus a relevant analogy in trying to assess the potential impacts of automation on ports and maritime shipping. While safety and performance improvements are the focus, automation can lead to unintended consequences such as a segmentation of shipping networks, the decline of terminal footprint and the devaluation of terminal assets.

The automation ceiling: In which context further automation makes sense?

Port terminals are particularly prone to automation since it provides direct benefits in terms of cost, efficiency, safety and reliability. Still, this automation takes place at different rates depending on the technology involved and how easy it is to implement it in a cost-effective fashion; the low hanging fruits are picked up first. Ports and maritime shipping are an asset-dependent activity, underlining the complexity and risk of their automation.

Risk mitigation underlines that there is an automation ceiling representing what level of automation can be implemented at a terminal effectively from a cost / benefit perspective. Any automation that is too capital intensive and that does not lead to significant benefits such as lower operating cost or higher throughput is a risk and should be treated with caution. It also underlines that automation can be phased in an asynchronous fashion, creating disruptions of the flows and processes within terminals. This asynchronism is linked with the cost and ease of implementation of an automation segment. For instance, yard management and automated gates are the most prevalent forms of automation since they are mainly software-based as opposed to automated yard equipment (cranes or horizontal transport), which are much more capital intensive.

Blockchain and supply chains: Revealing how the sausage is made?

The current discourse about Blockchains as a form of supply chain automation is surprisingly vague, underlining expected benefits, but these benefits are rarely explained in a structured fashion. This is very reflective of a hype phase where the expected benefits of a technology are exaggerated and the complexities of its implementation undermined. Still, Blockchain technology shows promises particularly over bills of lading and automated payment systems. A paradoxical issue is that a segment of transportation and maritime shipping is based on a capitalization of inefficiency. To what extent the application of Blockchain technology would reveal inefficiencies within supply chains and force a pricing readjustment in an already tight profit margin sector? In simplistic terms, does the industry really want to reveal how its sausage is made?

Automation changes processes but also locations

The current port automation discourse tends to take place in a vacuum, focusing on the processes (management, equipment, information technologies, engineering) that could be automated in a port terminal. What remains rather unnoticed is that although automation changes the processes within value chains, more importantly for the shipping business, it also changes locational requirements.

The true extent to which each economic sector is prone to automation is uncertain. Those with the highest potential tend to be in the manufacturing and distribution sectors; the main customers of ports and shipping lines. Less considered are the impacts of automation on input requirements, particularly labour. This could be far-reaching in consequences since labour becomes a more secondary non-material input factor, inciting supply chains to change their locational preferences accordingly. Under this evolving environment, sourcing strategies can shift to locations that are either closer to markets (distributional efficiencies) or to material inputs such as resources (procurement efficiencies). The outcome is a change of the derived demand for ports and maritime shipping, potentially with less long-distance shipping and a modal shift to other regional modes.

The prospects for trade and shipping: Back to absolute advantages?

The above trend underlines challenging trade prospects since automation impacts the factors of production. An important demand driver for maritime shipping in recent decades has been the exploitation of comparative advantages with the related outsourcing and offshoring of many activities in lower labour cost locations. This convenience may be drawing to an end, inciting a readjustment of international trade more along absolute advantages in terms of markets, capabilities and resources. Incidentally, this was representative of the global trade environment prior to its recent acceleration; trade was more a matter of necessity than convenience. What if globalization was just a transition phase?

Terminal automation must be considered in a wider context that affects both the technical aspects of terminal operations, but also the derived demand of maritime shipping. While one aspect (terminal automation) is under the control of terminal operators, the other (value chain automation) is outside their control. It would be paradoxical to transition into a fourth industrial revolution with efficient (automated) terminals and supply chains supported by Blockchains, but with lower anticipated shipping demands. For the industry, this would be an unpleasant surprise as the array of technologies from which it would benefit would also be the drivers of its stagnation.”

 

Source: PortEconomics

by & filed under Governance.

Port authorities have transformed into hybrid organizations mostly disassociated from operational activities and port services provision. Still, they maintain a key role in managing bodies advancing the prospects of respective port and associated clusters. Marketing is among the functions working towards this end.

In a new port study, PortEconomics members Francesco Parola and Thanos Pallis – joined by Marcello Risitano and Marco Ferretti – develop an innovative conceptualization of the marketing strategies developed by Port Authorities (PAs), framing a relevant case of the hybrid organisation into a business marketing perspective.

The study – that has been published in the distinctive journal Transportation Research Part A (Policy and Practice) – employs business marketing perspectives and their applications in hybrid organisations to introduce a novel conceptualisation of PA marketing strategies.

Within this theoretical angle, their study builds a multi-dimensional framework on PA strategic positioning that combines

  1. PAs’ marketing objectives in various Strategic Business Areas;
  2. the multi-faceted geography of the targeted salient stakeholders; and
  3. the induced portfolio of marketing actions, whose ramifications unveil virtuous cross-fertilization effects and fuel the success of PA marketing strategies.

 

This model enables to identify five different patterns of market coverage across diverse strategic business areas.

 

Source: PortEconomics

 

by & filed under Governance.

Contested industries have fallen under the increased scrutiny of the public eye when it comes to their environmental performance. In particular, the transport industry is still considered as a large polluter. Therefore, stakeholders put pressure on the industry to work on their environmental footprint. Shippers assess whether their supply chain as a whole can be increasingly ‘greened’, given increasing environmental awareness from both customers (in B2B settings) and consumers (in B2C settings). Ports, as important nodes in transport networks, seek to respond to these pressures. However, their variety of geographical location, economic situation, governance structures and administrative heritage would suggest different preferences towards environmental initiatives.

PortEconomics member Michael Dooms, along with Magali Geerts and Michael Langenus (Vrije Universiteit Brussel) discusses the results of a multiple case study analysis, based on desk research and in-depth interviews with seven port authorities within the Hamburg – Le Havre range in a port study published in the 44(4) issue of the International Journal of Transport Economics.

The main goal of the authors was to investigate how port authorities respond towards the challenge of greening the shipping industry, in particular on the motives and rationale behind the set-up of pricing schemes, and what kind of institutional arrangements are installed. From an institutional theory perspective, a high degree of isomorphism is observed in the Hamburg-Le Havre range as these ports are focusing mainly on Environmental Shipping Index (ESI) based bonus schemes for environmental differentiated port infrastructure pricing. Managerial and policy implications/recommendations, based on the empirical results of the cross-case study, are formulated in order to increase the efficiency and effectiveness of the use of environmental differentiated charging schemes.

 

Source: PortsEconomics

by & filed under Accessibility and Standards.

 

Kalmar is introducing an electric version of its Ottawa T2 terminal tractor, featuring lithium-ion (Li-on) battery technology and a fully electric powertrain that produces zero emissions at source. The machine is designed for trailer-handling operations in dispersed warehouses, container terminals and other applications where short-distance highway travel is required.

Gina Lopez, vice president of terminal tractors at Kalmar, said: “With the regulations relating to vehicle emissions becoming increasingly strict, more and more businesses are seeking alternatives to the diesel-powered container and trailer-handling equipment. The solution would help customers’ bottom line and improve their productivity while enhancing their sustainability credentials, she added. According to the manufacturer, the powertrain is much cheaper to run than a comparable diesel machine while it also has fewer moving parts, allowing for faster servicing and longer intervals between maintenance breaks. The model has an on-board inverter charger, allowing it to be charged during natural working breaks. The battery monitoring system displays the battery charge status and indicates to the driver when a recharge is required.

The unit offers benefits to drivers, added the Finnish company, with the electric powertrain offering “smoother acceleration and more power at the top end compared to a diesel-powered machine, enabling drivers to feel more in control”.  It also generates less noise, vibrations and heat and no fumes, improving the working environment in the cabin.

 

Source: Container-mag

by & filed under Environment.

American President Lines (APL) cut CO2 emissions by roughly 5% in 2017 compared to 2016, making it the eighth consecutive year the carrier has achieved a reduction. APL also registered fuel savings of almost 5%, and the carrier attributed both achievements to operational efficiencies, fleet and voyage optimisation, and the deployment of a fuel-efficient fleet of vessels.

Dennis Yee, APL’s global head for safety, security and environment, said: “APL’s concerted efforts to improve our environmental efficiency year after year underscore our commitment to a greener and more sustainable maritime industry.”

The company uses its 2009 CO2 emissions per transported container per kilometre as a base level, and in 2017 APL registered a 50.7% reduction on this figure. In 2016 the carrier registered a 48% reduction compared to the 2009 level. To improve fleet performance APL has modified ship bows and retrofitted propellers to vessels to minimise wave resistance and improve propulsion efficiency. Route optimisation systems have also been installed onboard its vessels. The carrier aims to reduce CO2 levels by 30% between 2015 and 2025, a target set by its parent group, CMA CGM.

APL will use low-sulphur compliant fuel in preparation for the sulphur cap which comes into effect in 2020, while some vessels will be fitted with scrubbers to clean emissions before releasing them into the atmosphere. Liquefied natural gas (LNG) will also be sued as a fuel source, with nine new LNG vessels ordered for 2020.

 

Source: Container-mag

President Donald Trump announced Tuesday that the U.S. will leave the 2015 Iran nuclear agreement, a signature achievement by his predecessor that he’s long derided as “the worst deal ever.” That could result in renewed sanctions on the third-largest crude producer in the Organization of Petroleum Exporting Countries. The bulk of Iran’s oil exports find their way to China, India and Korea, according to Bloomberg tanker tracking.

 

 

Source: Hellenicshippingnews

by & filed under Sustainability.

Piraeus, Greece  – The kick-off meeting of the COREALIS project, in which the Valenciaport Foundation participates, took place on May 7-8 in Athens. The 17 project partners had the opportunity to interact and define the vision, mission and operational plan of this initiative.

COREALIS, a project funded by the H2020 Program of the European Commission under the “Port of the Future” call, proposes an innovative and strategic framework for the management of current and future capacity of ports, traffic, as well as related challenges with efficiency and the environment. This scheme is supported by disruptive technologies, including IoT (internet of things), data analysis, state-of-the-art traffic management systems and 5G networks. The main objectives of the COREALIS innovations are to increase efficiency and optimize the capacity of port infrastructures, seeking economic viability, respecting the principles of the circular economy and favouring port-city integration.

During the project start-up meeting, the leaders of the 10 work packages explained their roles and responsibilities to prepare the way for the ports of the future. The main objective of the meeting was to provide a complete vision of the project, focusing on the innovations of the same as well as the expectations of the “Living Labs” and, finally, to organize the activities of the first semester. The COREALIS partners also had the pleasure of welcoming representatives of the “Docks The Future” and “PIXEL” projects, financed by the same program, at their initial meeting.

Horizon 2020 is the biggest EU Research and Innovation programme ever with nearly €80 billion ($95.68 billion) of funding available over 7 years (2014 to 2020) – in addition to the private investment that this money will attract. It promises more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market.

Source: PortsEurope