Some, such as Kovako Materials Handling in Holland, even saw the recession as a time of unprecedented opportunity. A year later, it appears that the damage wasn’t as bad as what might have been expected. Most avoided layoffs or plant closures. Market leading, Swedish-based Cargotec, for example, took a hit but overall the mobile shipunloader business was only “slightly slower” in 2009 than it was in the heady days of 2008, which was seen as a good year. “A boom tests company strength, but the lean times do even more so,” says Cargotec Executive Vice President, Olli Isotalo. Another industry giant, German-based Buhler AG reported only a 5.5% drop in new orders in 2009 for all group business as a whole.

2010 better
In Holland at Van Aalst Bulk Handling, Hans Van Est, Sales Manager, says: “Our 2009 was not a good year, but, 2010 looks much better.” The Dutch company didn’t sit around waiting for the hoped-for recovery, but instead jumped into other markets such as the recycling industry and conveyor units to keep its workforce busy. In fact, Van Aalst developed a long-distance conveyor system with low or no wear characteristics and later reused the concept in the cement industry. “It’s always good when we can vary our markets,” adds Van Est. He says the hot markets for Van Aalst have been India and Bangladesh while China and Pakistan are still busy. Van Est expects it will be 2011 before Europe bounces back from the economic shocks of the past year or so in the mobile shipunloader market segment. Rival Cargotec, which has over 70 mobile unloaders sold around the world, also notes Africa and Asia as emerging markets of high interest. While mobile shipunloaders are not likely to be major revenue earners for the bigger manufacturers – bigger ticket items such as mobile harbour cranes or continuous shipunloaders fit that bill – they are an important barometer to how the world economy feels as they reflect the movement of foods such as grains and bulk materials such as cement needed for construction.

Happier
And as 2010 nears its halfway mark, the manufacturers are feeling decidedly happier.  The year has been positive so far and orders are coming back to expectations as the market slowly rebuilds a head of steam again. Mobile shipunloaders move everything from coal to grain, cement to animal feeds. They’re highly portable and can be mounted on rubber tyres, dozer-like tracks, barges, or rails. They can feed conveyor systems, waiting trucks or rail cars, and can quickly be moved from dock to dock. The set up times is often less than an hour or can be as little as 15 minutes, according to IBAU Hamburg, of Germany.  One of the world’s leading manufacturers, Cargotec, the new grab-all branding strategy for widely-used MacGregor mobile shipunloaders (and its other two brand neighbours in the group, Hiab and Kalmar) reports it secured significant orders despite the global downturn, including contracts to Russia and Spain for two mobile shipunloaders to undisclosed ports.

Stars of Cement
Last year was a big year for Van Aalst in a different way. As the developer of the industry standard first road mobile shipunloader back in the late 1970s, founder Gert Van Aalst received a fitting tribute in January in the form of the Stars of Cement Award in Qatar at the Intercem Conference for his long-standing contributions to the cement industry. As the year progressed, Van Aalst also secured an unusual and highly satisfying project in Panama installing a gantry-mounted mobile shipunloader onto an old lake ship being used for storage because of a lack of port space. The unloader was able to service three different ship holds containing cement, fly ash and additives, as well as unload calling supply ships alongside as part of a electric power plant project in the Changuinola region. “There wasn’t enough space on shore for a storage silo,” explains Van Est of the need for the floating terminal. These days such invention has helped Van Aalst keep up with a changing market dynamic for mobile shipunloaders. Some 8 to 10 years ago at Van Aalst, over 80% of the unloaders sold were road mobiles able to take to the highways and go from port to port. These days, says Van Est, road mobiles are only 20% of the business and more dock mobiles and other larger ship unloaders are being built – they can move around the harbour, but they not equipped to take to the roads. Today, buyers are demanding larger units on rubber-tyred wheels or rail mounted pneumatic unloaders that can handle from 600 to 800 tonnes per hour.

Versatility
The versatility and maneuverability of mobile shipunloaders has been their calling card in recent years. Mobility and flexibility allow port operators to use one mobile shipunloader on several different docks instead of committing to permanent structures at each. Cargotec’s unloaders, which are based on Siwertell screw technology, also require only a single operator — seen as a strong plus along with the unloader’s ability to handle diverse cargoes. In the past year, Cargotec has developed a special version of its mobile shipunloader fleet for handling sulphur. This highly corrosive and at times explosive material saw Cargotec use stainless steel in key contact areas to withstand extreme corrosion. The unit also has 4S, Cargotec’s unique safety system (the Siwertell Sulphur Safety System), which is designed to minimise the risk of explosion and also detect fires. If there is a subsequent explosion, the mobile shipunloader is designed to withstand such forces and also has specially designed explosion flaps. There is also a built-in fire extinguishing system, which automatically starts if a fire is detected.

Going green
The quest for environmentally friendly mobile shipunloaders dominates R&D time these days. Such features as totally enclosed conveyor lines (Siwertell) and modern, fuel efficient diesel engines that comply with the toughest exhaust and noise emission standards are found on most. And it’s possible to get all mobile shipunloaders from makers such as Cargotec with bio-degradable oil and grease. Van Aalst, which specialises in the pneumatic bulk handling of cement, granulated slag, fly ash, china clay and alumina, offers a completely enclosed system from ship to silos or other off-load and their system creates an underpressure in the hold so that powder cargoes are not dusty in handling. Other enviro-friendly and cost-saving features include reduced power consumption through a hurricane aeration system, reduced maintenance costs through the use of pinch valves, reduced forces in the suction arm thanks to a rotating fluidising nozzle, and radio remote control.

Improved
In Germany, IBAU Hamburg uses screw-type mobile shipunloaders, largely in the cement industry, and has improved the unloading capacities of its street-mobile units by 30% in servicing the 5,000dwt and 10,000dwt vessel range. Reduced lifting heights have also cut energy consumption and the company says the compact design has achieved additional cost effectiveness. The two mobile shipunloaders used in this segment have a rated capacity of 400 tph, which is 30% better than the usual output of mechanical shipunloaders and also equals the maximum output of mobile pneumatic shipunloaders, the company claims. The improvement comes through “optimising design and improving the technology.” One of the better performing units is currently being used by Caledonian Slag Cement in Glasgow.

Competition
Not all of the big manufacturers of mobile shipunloaders are in Europe, however. A relatively lesser know company – Hangzhou Yuntian Rong Ye Machinery Equipment Co Ltd (YT) In China –  makes a trailer mounted pneumatic unit that uses a standard kingpin and a motor on the trailer to propel itself. YT has been in business for over 20 years and so far has placed over 130 projects for domestic and worldwide clients who need to move powdery bulk materials. Meanwhile, FL Smidth with its Kovako products is aware of the growing competition in Europe and abroad and has develope
d a range of new standard models, which have combined popular capacity needs with ship sizes and platforms (trailer, gantry and skid mounted units). The range goes from road mobile shipunloaders with a nominal capacity of 170tph for ships of 5,000dwt to gantry mounted units of 450tph nominal capacity suited for ships around 40,000dwt. The off-the-floor model range saves customers delivery times and as the cost of engineering is spread over more units, buyers don’t foot the bill for all of the usual engineering costs of their mobile unloader. And German manufacturer Buhler, which expects to have gained market share worldwide in 2009, offers its popular Portanova RSKP models in both stationary and mobile (rail or rubber tyre) variants, boasting a 300 tph capacity in servicing vessels of the 60,000dwt range. Common bulk materials handled include fine and coarse grained as well as mealy and floury materials such as grain, oilseeds, derivatives and animal feeds.

A couple of years prior to the worldwide financial crisis – starting in the second half 2008 – the shipping industry experienced ever increasing ordering activity. A massive wave of orders for 10,000+ TEU ships accounted for a large portion of the expected increase in capacity. The trend towards employing bigger and bigger ships on trades servicing growing economies and emerging trade lanes faced one major challenge. As ship sizes increase, so do the requirements related to port facilities and capabilities. This is particularly the case with regard to draught restrictions, length restrictions and the crane outreach and lifting capacity. Even though there are many ports in the emerging markets and growing economies too that are well capable of servicing even the biggest of ships, there are still a number of ports that will have challenges and limitations for a considerable time to come. DNV foresees a market potential in the 5,000–7,500 TEU segment, as there are a number of growing economies and emerging trade lanes that will require relatively smaller, more compact ships with features such as shallow draught and high reefer capacity. One example of this is the trade to and from the east coast of South America. This trade is assumed to have a strong future growth potential and is likely to require shallow draught ships in many of the ports along the cost. Furthermore, this trade is expected to require ships with a high intake of reefer containers, as there are substantial exports of fruit, meat and other perishable goods. The list of ships ordered in the 5,000 – 7,500 TEU segment is also substantial, but it is dominated by ships at the upper end of this segment and often with relatively standard designs. The number of new buildings at the lower end, i.e. around 5,500 TEU with a high reefer intake and a shallow draught, is limited. These ships have several deployment options on both the established and emerging trade lanes (including through the new Panama Canal) and could become the industry’s new ‘workhorse ­ships’ over the next few years. They will be highly relevant for both intercontinental trades, especially trades to and from Africa and South America, and large feeder routes such as the ‘Intra Persian Gulf’ trade. Existing and emerging markets also offer opportunities for new ship designs including United States import. The US has suffered the most from the present crisis, but is also expected to recover the quickest. Import from South America is expected to increase. Other large economies are also expected to grow fast, leading to increased imports of consumer goods, thus expecting high export volumes from South America, particularly perishable goods in reefer containers.

Design concept
DNV used ­workshops and brainstorming sessions to come up with a new ship design by using the best available technology. Consideration was also given to the fact that we are in a period with difficult market conditions and little ordering of new buildings but steadily increasing environmental awareness. Deciding on a time perspective of 3–5 years, more long-term solutions such as fuel cells were ruled out, while introducing LNG into the fuel mix was found to be feasible. A sensitivity analysis with respect to design speed was also carried out. Not surprisingly, it was found that lowering the design speed is a very effective way of reducing the operational costs and environmental impact. There was some concern that ships with lower design speed may be less attractive when the market conditions improve, however, as a return to cheap oil seems unlikely and consumers’ environmental concerns are continuously increasing, DNV believes that a shift to lower design speeds is the right way to go in the future. Innovative solutions were considered within areas such as hull design, machinery systems, propulsion systems, materials, cargo handling and operational efficiency, and the solutions were investigated with respect to market adaptability, fabrication adaptability and fitness for purpose. A customer survey was used to evaluate the needs and alternative solutions. Some solutions were then chosen for further investigation with respect to technical and economic feasibility. The solutions were not only to look innovative but should also demonstrate real improved performance. During this process, many ‘innovative’ concepts such as catamaran and trimaran hulls were discarded. In the end, the most promising concept was selected for initial concept development, which was followed by detailed technical development as well as verification analyses. Finally, the Quantum concept was born.

New design
The design of the hull is similar to that of an aircraft carrier with an overhang shape of 3.25m on each side (total width is 49m) above the waterline, creating a 10% increase in cargo capacity. The wide-deck mono-hull will feature double-bottom ballast tanks and narrow empty void spaces in the wings. The ‘baby’ post-panamax vessel is designed for a range of speeds with an ideal speed of 21 knots for a 6,500 TEU. In assessing the power requirements, the concept model suggests a dual fuel configuration that powers a pair of thrusters. The team chose 33 MW as the maximum power supply to cover the needs for a design speed of about 21 knots [a design speed of 25 knots would require 50 MW of propulsion, while a four-knot drop required less than half that power load].This also covers the power needed for up to 1,200 reefer plugs and to have enough power in reserve for any scheduled delays or unforeseen emergency requirements. The concept also indicates that marine diesel oil would be used for the trans-ocean passage and LNG for the coastal legs. Therefore the vessel is equipped with a pair of 2,500cm3 liquefied natural gas (LNG) tanks, which would be placed directly under the accommodation block, where the engine room normally would be located. The deck overhang will be a hindrance at some ports, especially when the ship berths at the quay [it could ‘hit’ the leg of the container crane], but DNV is confident that the use of floating fender systems [maybe permanently installed on-board] could avoid these issues. DNV are also considering the use of self-inflating fenders stored in the void space of the overhang that could be inflated on the shore-facing side of the ship when in port. The Quantum design is 49m wide at deck level and DNV is confident that this is not an issue for ports or terminal. However, the company believes that ports in emerging markets will extend their lifting capacity and install container cranes that are able to take these ships as the market develops. Another consideration given to the design is that there are some draught limitations in both South America and India giving limitations of the vessels that can enter these areas and therefore a 12m draught was found to be optimum.

But – like any other terminal operator – DP World felt the impact of the global economic downturn and saw container throughput decline at its terminals around the world and thus decided to put the London Gateway project on ice. During this time the parent company, Dubai World, also made headlines as it hit a financial crisis, due to large investments in Dubai, but assured investors that it would not affect DP World.  After reviewing the project, DP World announced at the beginning of this year that it would go-ahead with the construction of the infrastructure, after it was able to reduce building costs considerably, but failed to say when the facility would open. According to Mohammed Sharaf, Chief Executive of DP World, operations at the new terminal and logistics park would depend on market conditions. Sharaf also mentioned that the project was ‘a go’ following agreement on price concessions that might not be available if the project was delayed much longer. Back in August 2008, DP World signed the USD600 million-contract with Laing O’Rourke and Dredging International to build the new terminal. Although neither company wanted to comment on possible penalty clauses in the contract pertaining to specific dates by which work must start, it is normal procedure for a dredging contractor to include this in the contract in order to plan the appropriate allocation of dredging equipment etc. Sharaf denied that this was the main reason for the decision to proceed with the project. “I would rather have paid the contractors damages than invest hundreds of millions unless I was very confident that the project would deliver long-term returns and long-term value creation for our shareholders,” he said. Raising the question of penalty clauses directly with DP World communications department prompted a written statement from Communications Manager, Xavier Woodward: “DP World has not made any announcements in regards to its container handling equipment for London Gateway and the company does not comment on project finance for any of its developments.” Although DP World doesn’t want to comment on its financials it has been no secret that the European Investment Bank (EIB)has agreed a USD450 million loan to ‘kick-start’ the development in November last year. Information on the website of the EIB shows that the loan was for the ‘total’ London Gateway project and not for the first stage of the dredging works. With regards to the container handling equipment the industry is guessing ‘who gets what’. Back in 2008, Simon Moore, CEO of the London Gateway project, told World Port Development that the container terminal will be fully automated with the use of automated guided vehicles. And more recently DP World issued another statement that the container terminal will be “one of the most automated and efficient in the world.” So, what can we expect in orders? DP World operates the Antwerp Gateway Terminal in Belgium and is operating automatic stacking cranes (shown on the Technology page of the londongateway.com website) from German manufacturer Gottwald Port Technology, the same supplier for automated guided vehicles. Industry expectations are that DP World will strike a deal with Gottwald for the supply of the ASCs and AGVs – although this cannot be confirmed as yet.  Moore also indicated that state-of-the art cranes will handle the 12,500+ container vessels that will be visiting the terminal but with a large number of cranes to purchase coupled with the challenge of recovering from a downturn, DP World might look to Chinese ZPMC for their order rather than a European crane manufacturer, despite the fact that they are ‘closer to home’.

This article was published in June 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

Fabrizio Bonfanti talks to World Port Development about the success of crane manufacturing company Italgru S.r.l

Please explain the background of Italgru , how and when the company was formed and its growth path over the years.

Italgru was born from the merger of a small manufacturer of hoisting equipment and a private group operating in the commercial sector. From the outset the company undertook a vigorous plan of restructuring and reorganisation in order to perfect its production and achieve the position of leadership it now holds in the sectors of mobile dockside and off-shore cranes. In 1958, anticipating what would become its market philosophy, Italgru took an important step forward in the field of truck cranes when it presented its model AG 30, with a maximum capacity of 30 tons, which at the time was the largest truck crane produced in Italy. Another milestone was reached in 1964 with the supply of 90 mobile truck cranes to Italian company Genius. This was a definitive achievement in the Italian market and thanks to this important success Italgru gained the impulse to grow commercially and technologically. Between 1960 and 1970 Italgru consolidated its position and, thanks to the excellent qualifications of its engineers, its workforce and its management, the company achieved steady growth in terms of production and sales in the sector of hoisting equipment. The 1970’s saw another landmark for Italgru with the production of its mobile harbour cranes on wheels which saw the company achieving its goal of covering the complete range of machinery for handling large loads.  To cement this success, the company concentrated its efforts on technological improvement by expanding its design sector and setting up its own “Quality Control” function applied to all the machines, with rigorous and accurate laboratory tests on the materials. In 1995 Italgru was acquired by the Bonfanti family, who took over the know-how, production plant, technical archives and personnel. The company operate in a plant that occupies an area of 25,000sqm in Lecco, Italy. With a view to expansion, in 2001 the company acquired a large strategic industrial site of 130,000 m², with 15000 m² of buildings served by a railway-junction. This investment and the continuous expansion of production space is driven by the necessity to satisfy the growing demand for larger, more efficient machines. Today Italgru has established itself as a reliable, efficient and valid reference point in the market of mobile harbour cranes, oil rig, floating and deck off-shore cranes, special heavy-duty hoist and old crane revamping.

Experience teaches that success should never be an end in itself, and this is why Italgru is constantly looking to the future, well aware that to stay in first place in world production requires a constant commitment to the search for new solutions capable of improving the machines and ensuring better satisfaction of the vast clientele with first class service and technology.

 2. Italgru recently opened a new factory – why was this necessary and what does it mean for Italgru’s future?

Italgru has opened a new 6.000 m² building bringing the total manufacturing area to 21.000 m². This new area is dedicated to the steel mechanical working and assembly of the final products. This investment is sufficient (at the moment) to meet customer demand. In fact Italgru has acquired several orders from the Harbour and Oil & Gas sectors for their newly-designed cranes. Furthermore the company has received the approval from the city of Ambivere to build more than 40.000 m² over the next five years, should it be required.

3. In your view what are the core strengths of Italgru?

The core strength of Italgru is the family that is at the heart of the business – this has a very positive effect on all the employees. We are a team, a strong team with a good trainer. Italgru has acquired a new technical manager and some new staff in the technical department to satisfy the requirement of new customers that are looking for a new supplier of Mobile Harbour Cranes. Italgru is assuming this role step by step. Furthermore, dynamic management, versatile products, advanced design, quality controlled production, quality, and guaranteed after-sales service are all winning features that have rewarded us for 50 years of hard work. The mission of the company is to realise excellent products and solutions to meet market demands which are oriented to the real needs of the customer. This objective is achieved by a Quality Management System, through which the processes, necessary for the business management and the realisation of the product, are planned, developed and monitored with the employment of adequate resources. Since 2003 Italgru has been certified ISO 9001 by RINA in the areas of design, production, assembly, testing and after-sales service. A continuous optimisation of the production processes and a remarkable organisational elasticity between every department allow Italgru to operate with remarkable efficiency and with highly competitive prices. Particular attention is paid to safety in regard to infrastructure and the working environment, to allow best working conditions.  By monitoring every part of the business from management through to production, against established objectives, weakness and inefficiency can be pinpointed and eliminated to avoid loss of time and waste of resources thus ensuring that the business operates at optimum performance.

 4. In such a competitive market what are the challenges facing Italgru over the next few years?

Italgru has contracts for the next year and beyond (up to June 2011). Currently we are planning investment in new agents/dealers that will be required for the market. We do not need to get involved in  a race for the quantity of mobile harbour cranes produced in one year, rather we prefers to manufacture the right number of machines that allow us to service both  old and new customers.

5. What do you consider the most important technical initiatives/projects undertaken by Italgru over the last five years?

Italgru is a modern company that takes advantage of state-of –art technology such as three-dimensional design and parametric software. Our technical department plans and designs any type of system to satisfy the most challenging and diverse technical operating requirements in a variety of environments, including sectors such as docks, oil extraction in open sea, and iron and steel shipbuilding. Our specialised and technically qualified personnel, our range of equipment for every type of working, plus the employment of optimal raw materials and partnership with excellent suppliers all concur to obtain high quality products that correspond to the specific needs of the customer. Specialist technicians guarantee efficient and immediate service including advising on choice of system, installation and start up of the systems. We also offer after-sale technical service. In the last five years Italgru has won a lot of contracts for MHC and Pedestal Offshore Cranes. This has created a lot of curiosity from the stevedoring companies and oil and gas companies to know more about this Italian company.

 6. Ho
w would you describe your vision for the future of Italgru? 

In the meantime Italgru has many contracts to boast about including several for Mobile Harbour Cranes (7) and pedestal off shore cranes (9) and is in negotiation for six mobile harbour cranes and 12 pedestal off shore cranes. Italgru’s vision of the market is that it is the land of big opportunity that requires its presence – have no doubt – Italgru will be there!will be required for the market. We do not need to get involved in  a race for the quantity of mobile harbour cranes produced in one year, rather we prefers to manufacture the right number of machines that allow us to service both  old and new customers.In the meantime Italgru has many contracts to boast about including several for Mobile Harbour Cranes (7) and pedestal off shore cranes (9) and is in negotiation for six mobile harbour cranes and 12 pedestal off shore cranes. Italgru’s vision of the market is that it is the land of big opportunity that requires its presence – have no doubt – Italgru will be there!