This article was published in the October 2010 issue of World Port Development. To receive a pdf of the article in its original format including charts and pictures please send an email to archive@worldportdevelopment.com
On the road to recovery
Port reform in Spain has been a burning issue for some considerable time with interested parties pushing for greater liberalisation of the State-owned ports. It has been a long and difficult road but at last it seems progress is being made. Earlier this year the Spanish parliament approved a draft law that will give government port authorities greater flexibility in the day-to-day running of the port. Opening up the port services to greater competition has been blocked by various parties, not least the docker’s unions. However, it seems that the stage is finally set for substantial change. Drafting the law has been a long and arduous process. Out if a total of 327 members of parliament present, 302 voted in favour of the reform. Commenting on the new law Spanish development minister José Blanco said: “The new law meets the government’s aim of moving ahead on the pillars of productivity, competitiveness and efficiency, within a framework of social justice and environmental sustainability,” said Blanco. “This is the definitive step toward the future model of the port sector and will make Spanish ports more attractive and more competitive within the global economy,” he concluded. Specifically, the main aims of the law include providing government port authorities with greater financial self-sufficiency by allowing them more flexibility in applying charges; ports with unique circumstances such as Algeciras can apply specific bonuses to retain a competitive edge; and the restructuring of the stevedore sector, which will be delivered through private companies (under the watchful eye of the port authorities) will help to avoid unfair competition. It is hoped that that these changes will increase the competitiveness of Spanish ports, bringing a much needed boost to the Spanish economy.
Algeciras
Although the Port of Algeciras Bay saw container volumes decrease to 3,042,759 TEU in 2009 –a drop of 8.47% – compared to the year before, it was more than acceptable for the port authority, specially as most of the European ports experienced a larger drop in container throughput due to the global financial crisis. In general, the Port of Algeciras Bay continues to be a strategic hub for Maersk Line, as its sister-company is operating the APM Terminals Algeciras. In December 2008, the stevedore sector in the Port of Algeciras Bay signed a new collective bargaining agreement. This agreement has been underlined as “historic” within Europe for the ten-year-valid period (until 2017). It will help to gain customers loyalty and therefore assure activity in all terminals. For the first 5 months of this year Algeciras saw container throughput increase by 5.9% [it handled 1,259,164 TEU] compared to the year before. The Isla Verde Exterior, consisting of around 120 hectares of regained land is in quite an advanced stage and expected to be completed by 2011. This port expansion project will see 72 hectares of container terminal divided into two phases – phase-A features 35 hectares (completed) and phase-B 37 hectares (to be completed by 2011). Phase-A started operations in May and is operated by Total Terminal International Algeciras (TTI-A), a subsidiary of Hanjin Shipping, South Korea. In July, HRH the Prince of Asturias, Prince Phillip of Bourbon, and the Chairwoman of Hanjin Shipping, Ms Eun Young Choi, formally opened the Total Terminal International Algeciras (TTIA) facility. Owned and built by the South Korean group and located at the Port on the Strait of Gibraltar, TTIA is the first semi-automatic container terminal both in the Mediterranean and Southern Europe. It is the largest investment ever made by a South Korean company in Spain, precisely at the same time that both countries are celebrating 60 years of diplomatic relations. The Isla Verde Exterior project will also include a 6 hectares oil terminal [to be completed in 2011] and a ro-ro terminal.
Valencia
In 2009 container throughput in the Port Authority of Valencia rose to 3,653,890 TEU an increase of 1.44% compared with the previous year. Located in the Port of Valencia are 3 main container terminals; Marítima Valenciana, MSC Terminal and TCV. Like its name the MSC Terminal is owned and operated by the container line MSC. The company is investing around Euro 4.8 million in the terminal by extending one of the two quays by 70m to a total length of 770m and is scheduled to be completed in September 2010. Another Euro 200.000 is being invested for the extension of the rear part of the container terminal. In the first 6 months of the year the terminal has handled around 6% more containers than last year [over the same period] and the forecast for the MSC terminal is that it will handle a total of 1.3 million TEU in 2010. After completion of the new extension to the Llovera pier in 2009, TCV Stevedoring is now operating two berths with a total length 16.6km and with a depth alongside of 16m [from 9m]. This will enable the operator to accommodate the latest generation container vessels as the new pier is equipped with three super post-panamax gantry cranes capable of handling ships 22 boxes wide. In addition there are 9 container gantry cranes and 18 RTGs. To achieve better efficiency and operations the port is planning to relocate blocks and yard works in 2010. This has also resulted in an improvement of the average crane productivity this year compared to last year when crane drivers achieved 23-24 moves per hour. Valencia has also embarked on the Northern Expansion project, creating an additional 1.5 million square meters of land, thus doubling the handling capacity of containers. The project involves the creation of a new dock on the north outside the East Dique from the current port, through the construction of a dam line of two alignments that surrounds it, leaving open a south-facing entrance. Currently, the port is building the first phase for the protection works. This phase will build a sea wall of 3385 meters in length, a dike of 1.1km and an esplanade of stockpiles and ancillary facilities covering 14 hectares. During the first quarter of this year Valencia handled a total of 924,249 TEU an increase of 7.71% over the same period last year.
Barcelona
The Port of Barcelona handled 1.800.213 TEU in 2009, which is a drop of 29,94% on the 2008 figure of 2.5 million TEU. Throughput traffic during the first five months of 2010 shows some recovery in comparison to the intense decline registered in the same period of the previous year. From January to May 2010 the Port of Barcelona handled 745.409 TEU (+3%). However, there are two relevant figures that are worth pointing out: containerised cargo volumes for export increased by 18% and import container throughput was also up by 15%. Although it is difficult to make a forecast for 2010, the Port Authority hope that the reduction of cargo volumes registered in 2009 will come to a halt. A closer look at the 2009 results reveals that exports performed better (with a 15% reduction), while imports (-26%) and domestic traffic (-20%) showed a poorer trend. Trans-shipment (-43%) registered the biggest decline in containerised cargo. As these figures show, the economic crisis and the general fall of international trade had a direct effect on Barcelona’s cargo volumes. In order to stimulate activity of the port’s operators and customers during the current recession, Barcelona’s Port Authority took a number of measures in 2009, which have been extended and improved in 2010. Fees to vessels, goods and passengers were frozen last year and reduced by 1% in 2010. Phase 1 of the new Prat wharf was fast-tracked in 2009 and completed in February 2010. It will house the new container terminal, which was awarded to Tercat-Hutchison (HPH). The new wharf will feature a 1.000-meter-long quay, 8 super-post-panamax quay cranes with outreaches of 22 c
ontainers, a yard area of 100 hectares, 18 container stacking blocks with 36 one-over-five automated stacking yard cranes (ASC), a fleet of shuttle carriers, tractors and trailers, an eight-track rail terminal, and administration and engineering buildings. The Prat wharf container terminal will be installed with an automated terminal operating system called nGen, developed by HPH. The new terminal will have an annual handling capacity of 2.65 million TEU. The first berth is expected to commence commercial operations in late 2011/early 2012. In 2009 construction works were well underway at the South wharf, which is being enlarged in 25 new hectares with a Euro 56 million investment, while the Adossat wharf is being extended in 20 new hectares with a Euro 45 million investment. The enlargement works of the Prat Logistics Activity Area (ZAL Prat) were also in progress in 2009 and will continue in 2010. When completed, the ZAL Prat will triple the Port surface for logistics operations, reaching up to 209 hectares specialised in services of high added value to the cargo. Last year Barcelona also developed some actions in order to strengthen its hinterland competitiveness. In February a new rail service for container cargo transport between the Port and Lyon was launched (Barcelyon Express) by a joint venture between the Port Authority, Renfe and Naviland Cargo. The Toulouse Maritime Terminal developed by the Port of Barcelona took an important step forward in 2009. Construction works of ZALToulouse (the logistics activity area attached to the terminal) were almost completed in 2009. In the first quarter of 2010 the first operators were fully settled in the new infrastructure.
Bilbao
The Port of Bilbao registered a double-digit drop in throughput in 2009 and has continued to see traffic fall in the first quarter of 2010. In the first half year, total throughput in the Port of Bilbao reached 15.5 million tonnes, a very similar figure to last year’s. The growth of dry cargo is outstanding (+34%), inside which general cargo grew 50%, mainly due to the increase in iron and steel products, machinery and spare parts. Solid bulks, on the other hand, went up by 43%, with iron ore, scrap and chemical products standing out. Likewise, container goods and the number of TEU grew by 18% thanks to the boost in iron and steel products and also in machinery and spare parts. Half of the Port of Bilbao’s overseas traffic, which grew by 8%, still has the European Atlantic as its origin or destination. There was an outstanding 70% growth experienced in the African Atlantic. In regard to countries, the main origins or destinations of Port of Bilbao total traffic (including hydrocarbons) are Russia, the United Kingdom, the United States, Iran and the Netherlands. In the half-year ending, several shipping companies including DFDS Lys Line, NORMED, Transfennica, Maersk, WEC Holland Mass and Finnlines have reinforced their maritime offer in the Port of Bilbao. “Despite the crisis, we have new lines opening and others have expanded their services, while new cargo flows have arrived and multi-million euro investments have been made. We have increased our marketing efforts in conjunction with official entities, associations and private companies in order to find new markets, and we have managed to be selected as a home port for cruise ships. We have a lot to offer shippers and it is in these times that we must know how to sell what we have achieved over all these years,” commented José Ramón de la Fuente Arteagabeitia, chairman of the Bilbao port authority. In spite of the crisis, Bilbao Port Authority has maintained its investment plan. This year, it will invest Euro 42.4 million, of which 20.6 million have already been used. In March, the civil works on Dock AZ-3 were concluded, while those on Dock AZ-2, will be completed in 2011. Likewise, Euro 1.9 million is being invested in the building of a provisional 1,400- square meter maritime station at the Getxo Cruise Terminal and Euro 7.2 million is earmarked for the maintenance works on Punta Lucero Breakwater.
Las Palmas
The Port of Las Palmas saw a significant fall in throughput in 2009 handling 956,736 TEU, which represents a drop of 27% on the previous year’s results. The port attributes the decline is to the continuing effects of the global economic slowdown. Although it remains Spain’s fourth-ranking container port in terms of volumes, it has fallen 18 places in the world rankings to 97th position. The Port blamed the decline on depressed international commodity markets and reduced domestic consumption in the Canary Islands. For 2010 it predicts that it will maintain 2009’s levels of traffic, with slight growth. Las Palmas is seen as a bridge between continents, and has become the hub for trans-shipments for West Africa, with 22 direct lines with weekly frequency to the region. The Port has three container terminals: the Operaciones Portuarios Canarias (OPCSA) terminal, which is 45% owned by Dragados SPL and 30% by the port’s major client, MSC; the Líneas Marítimas Canarias (LMC) terminal; and La Luz terminal. Between them, the terminals have a total of 3.1 km of linear berth, with depths alongside ranging from 11 m to 18 m. The six-berth OPCSA terminal handles mainly trans-shipment cargoes. 2008 saw the completion of an investment programme that expanded its eastern quayside by 300m, along with its southern yard. This gives it 1,150m of berth on the western quay and 900m on the eastern quay. A new super post-Panamax quay crane and four RTGs were delivered in mid-2008, taking the terminal’s total complement to nine gantry cranes (one Panamax, five post-Panamax and three super post-Panamax). The LMC terminal concentrates mainly on short-sea services operated by its parent company, Contenemar. It covers an area of 1573,569 m2 and has a capacity of 2 vessels simultaneously400,000 TEU, sufficient to handle all projected growth for the next 5–6 years. The La Luz terminal has 1.154925m of berth. It covers an area of 187,286 square meters.The infilling of a seaward extension of the terminal has added a further 8ha to bring the total to 23.7ha, and the berths now offer an alongside depth of 14m along the outermost quay. Significant recent investments have seen La Luz acquire two new post-Panamax quay cranes, bringing its total to five, and five new RTGs, making a total of six. This investment has resulted in a major new partnership with shipping coalition SAECS, which began making calls in May 2009, taking annual volumes at La Luz to an estimated 250,000 TEU. Over the past 12 months, Las Palmas has developed its bunkering business and repair facilities for large ships and rigs. For the current year it plans to reduce port charges, while maintaining quality and competitiveness. The port authority’s investment programme includes Euro 110m for a breakwater at La Esfinge for future expansion of the port, with completion of this project anticipated in 2013. However, with total capacity now standing at 3m TEU, there are no immediate plans for new container facilities.