Our capital projects include major upgrades of older and undeveloped shipping terminals, so we can handle the biggest ships and easily connect to the cross-country railroads while minimising air quality impacts. Our existing capacity to handle more big ships and link to more trains is a huge competitive advantage for us, and improvements will keep us ahead of other ports.

*With the new Clean Air Action Plan (CAAP), is the Port now partnering with the environmental organisations that delayed port expansion projects?

Environmental groups and environmental regulatory agencies regularly consult with us on our environmental initiatives. They make suggestions and they review regular studies on current environmental conditions. It is important to engage our diverse stakeholders, even if we don’t always agree.

*Does the Port have the in-house staff capability to deal with the new clean-air initiatives aimed at addressing environmental concerns?

At the Port of Long Beach we have a relatively small staff, but we utilise contractors as needed to support our initiatives.

*Is the Middle Harbor project the first of multiple initiatives? Will the project to build a new container terminal and on-dock rail yard at Pier S be next? After these projects, what are those next stage initiatives likely to be?

The current initiatives include roughly USD 600 million in improvements for the Pier G container terminal used primarily by “K” Line. We’re also underway with a USD 200 million initiative to add shore power facilities at all of our container terminals so ships can plug in for electricity. We are planning to begin construction of the Middle Harbor project later this year or early next year, after we complete final designs. We’re in the environmental review process for the Gerald Desmond Bridge Replacement Project, and will soon issue the draft review documents for Pier S. We also have a rail yard project. And there is very initial talk about a zero emissions cargo mover, and an automated terminal.

*As your customers shop around, and other seaports compete aggressively for their business, do CAAP and the replacement for the 40-year-old Gerald Desmond Bridge provide a firm basis for your Port’s strategic competitive advantage in 2015?

Our Green Port Policies are helping us address community concerns and gaining us public support for our ongoing efforts to promote international trade and support jobs. At the same time, we need to show the industry that we will continue to provide the best, most flexible, efficient and reliable facilities for them to move their cargo.

*How would you summarise the port’s core strategy for the coming years?

Our strategy is to partner with our customers and the community to provide the best facilities so that we expedite cargo, clean the air, and create jobs — so we all prosper in the years ahead.

*On your own internal “annual report card”, how would you rate the port’s 2009 performance? And what do you expect for 2010?

The approval for the Middle Harbor project and the quick implementation of the Clean Trucks Program in 2009 were huge successes for the Port of Long Beach. Both initiatives address our community concerns for better air quality, while also improving productivity for our customers. With the Gerald Desmond Bridge and other initiatives in 2010, we are looking for continued success.

*Has organising and raising the financing for planned infrastructure developments been a problem? How so?

We finance terminal improvements with revenues from our ongoing leases and operations. We’ve always run a very tight ship, giving us the financial resources to finance our projects including Middle Harbor and other initiatives. We have secured about half of the funding for the Gerald Desmond Bridge, and given the project’s importance to the nation, we expect Congress to provide additional funding. Our bond ratings are strong, and we have the ability to use a combination of financing strategies to pay for our projects.

*Do the US federal and California state roles add any value or are they mostly a burden?

The federal government plays a key role in funding access projects for the ports such as roadways, bridges and waterway dredging projects. Both the state and federal government play major roles in regulating the environmental impacts of ships, trucks and trains so that ports can compete on a level playing field.

*Please tell us something about your personal career before Port of Long Beach that will help our readers understand how you came to lead the Port.

My background was in property management, at Stapleton International Airport in Denver and then as Director of Properties for the Port of Long Beach. I negotiated leases, acquired properties, and managed properties – all essential responsibilities as the executive director of the Port of Long Beach. The port authority operates as the landlord over our complex of shipping terminals. We negotiate leases with terminal and vessel operators. We develop properties. And we manage these properties.

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.

The company has taken a number of steps to deal with these issues. Firstly, they work to ensure that the selection of cable reels and reeling cable precisely matches application requirements: “Expert knowledge and experience with these applications is the key for high-performing systems. Today, it is mandatory to make sure that deflection devices are perfectly in line, so as not to generate additional torsion on the cable.” The manufacturer adds: “Some devices such as cable guides need to be positioned at the proper height and according to the anchor bollard depth, for example. This helps to reduce cable tension at the centre point when crossing at full speed. Full speed at the centre point is one of the key issues at the moment, while productivity cannot afford slowing down for any reason. [Our] currently installed systems achieve 180m/min crossing the feeding point.” Of course, a further fundamental is the choice and design of the cables. There are a number of variables to think about in cable choice, all of which have a knock-on effect and must be carefully considered to provide an effective, comprehensive solution. For example, the weight and diameter of a cable affects the size and cost of the cable reel, and alters torque and storage space requirements.  “The lighter the cable is, the less torque you need,” states Conductix-Wampfler. “However, most of the time, a lighter cable has a lower maximum tensile strength. Looking at this, when speed is high at the centre feed, or when the installation height is huge, we often have to go for a bigger cross-section than electrically required.” The company operates several testing facilities in Germany (V-REX) and France, where reeling cables and reeling systems can be tested intensively. It adds that, “all well-known cable manufacturers make use of our test systems to test the performance of reeling cables under lifetime conditions.” Finally, the company cites accuracy of pull regulation as being more important than ever before. This comes down to two main technologies available on the market: “On the one side, we have the permanent magnet coupler. This technology has been around for over 40 years; however, Conductix-Wampfler is continuously optimising it to achieve perfect performance and reliability,” the manufacturer states. “With the modular design concept of the Conductix-Wampfler range, standard AC motors are used for the reeling systems. Depending on the torque requirements, they can be switched on and off during the operation to always keep the perfect tension on the cable. In 2006, Conductix-Wampfler developed and patented a new generation of high-tech permanent magnet couplers based on rare earth magnets. These couplers generate an almost constant torque at various speeds. They are much smoother for the cables and more efficient than previous generations of magnetic clutches or competitor products. This provides a further step forward for our product for the future.” In terms of reducing maintenance downtime, Conductix-Wampfler states that it is working towards improving maintenance windows, increasing the lifetime of reels and cables, and offering a ‘plug and play’ solution. With modern drive technology, the company states, it has also become possible to feed back energy into the power grit. Conductix-Wampfler tells us that, in the past, energy has been wasted in large braking resistors at the spreader reel. This energy, the company states, can now be re-used to enable a much more energy-efficient operation. Conductix-Wampfler adds that the variable frequency drive (VFD) solution is another important facet in delivering cable solutions. This adjusts the torque level directly inside the motor, and the cable pull is continuously adjusted along the run or lift. VFD is required for fast applications of up to 300 m/min and accelerations up to 0.6m/s².  The company admits that, in line with the experiences of crane manufacturers, it has suffered through the effects of the global economic downturn. While its order books are now certainly showing signs of improvement, project decisions continue to take longer than they had previously, and larger-scale projects have been scarce in recent times. Orders for medium-sized projects for ship-to-shore cranes, railway terminals and, mainly, electric rubber-tyred gantry crane (E-RTG) applications have accounted for the greater share of orders. The company’s largest cable solution project in 2010 so far has been a deal with ZPMC, using Tratos cables, for 38 rail-mounted gantry cranes. The manufacturer has also notched several new projects for the electrification of RTGs. It has been involved in a number of further projects for large-level wind reels in the Australian mining industry, supplying more than 25 large wind reels to various customers. The company boasts that local engineering, production and assembly facilities have helped it become “a key supplier for this industry in Australia.”

Tried and tested solution
Stefan Munko, the European PR contact for US-based, global company Kabelschlepp, is keen to underline the continuing importance of steel in the production of cable solutions.  “Steel as a material for energy chains is still going strong, as many satisfied Kabelschlepp customers experience in daily operation. Highly rigid and sturdy, the ancestor of all cable chains is still the first choice for many applications. A little known fact, though, is that steel chains are maintenance-free,” details Munko. “In engineering, steel is indispensable in delivering properties like sturdiness, heat resistance, durability, impact and corrosion resistance. Also for cable carriers, demanding operation conditions have shown steel to be first choice. This is why Kabelschlepp has continuously upgraded its Steel Line to latest specifications, offering bespoke solutions for demanding and extreme applications.” Kabelschlepp cites offshore applications as being one example of this. Because steel chains are corrosion and UV resistant, with maximum durability offered by their material properties and specific design, they can withstand high mechanical stresses, high loads and long unsupported travels. The manufacturer states that its decades of experience have aided it in delivering sophisticated solutions and designs, including chain bands and links with diverse geometries, amongst them an open stroke system with self-cleaning properties to reduce wear and to increase longevity. This also allows maintenance and lubrication-free designs. “Steel Line does not require maintenance downtimes,” the company boasts.

Contract for Cavotec

In June, global company Cavotec MSL announced that it had sealed a contract to supply high-voltage cable reel units and associated control reels to Chinese engineering group Dalian Huarui Heavy Industry, as part of an extension project at the Caofeidian Island Coal Terminal, located on China’s east coast. The island is built entirely on reclaimed land and located 210 km (130 miles) south-east of Beijing. The State Development and Investment Corporation Caofeidian Port Co Ltd oversee and manage the extension project. “This is an excellent vote of confidence in our customer service and advanced engineering capabilities, because Cavotec installed all the cable reels used in Phase 1 of the Caofeidian Coal Terminal project in 2007 and 2008,” Gustavo Miller,

Managing Director of Cavotec Shanghai, said when the deal was struck.

The company is manufacturing seven high-voltage cable reels and seven control cable reels for use on six re-claimers with an operational capacity of 6,500 tonnes per hour, and one stacker with the same capacity. The coal terminal’s extension will see a total investment of RMB 5.43 billion (EUR 670 million, USD 800 million), and is set to increase handling capacity to around 100 million tonnes per year.

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

North American bulk alive even if economies still lag

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

With North America slipping back into a malaise of economic uncertainty, bulk and break bulk shipments have been feeling the pinch, but at least some sectors are showing increases in 2010 as Ray Dykes reports.

While major ports in the United States and Canada still languish behind 2007 total tonnage levels, they’re trending the right way. And that’s in stark contrast to the North American economy overall as second half figures for 2010 are analysed and financial commentators start to wonder if the recovery was a mirage. In the US, some even say the economy barely has a pulse after 2.6% GDP growth figures recorded in the half year to the end of June. With all the federal economic stimulus money now out there – USD862 million – “the economy should be roaring ahead,” according to one leading economist. Instead, when adjusted for inflation, the economy is still smaller than it was before the recession. Canada appears to be slipping back to join its neighbours to the south with a disappointing 2nd Quarter GDP of only 2%. The weak result is in stark contrast to Port Metro Vancouver, the country’s leading port and the busiest export port in all of North America, as bulk shipments this year so far are driving a resource rich Canada back onto its feet. Ranking North America’s port by bulk shipments turns up different results than if container traffic was considered. The No 1 port by bulk and break bulk movements on the continent is the Port of South Louisiana followed by the Port of Houston, Port Metro Vancouver, New York/ New Jersey, the Port of Long Beach, the Port of Los Angeles, and further back the St. Lawrence Seaway ports. For one major port at least, bulk is the catalyst to finding the good times again. “Bulk products are powering our recovery,” says Port Metro Vancouver Chief Operating Officer, Chris Badger, with more optimism than most. “Coal has had a very strong year so far with record levels of US coal exports through our two major coal facilities.” Total tonnage through the port was up 20% to 58.4 mt at the half and coal was up 32% at almost 15 mt resulting from strong demand in Asian countries and continuing favourable world market pricing.

Fertilizer recovery
Port Metro has a diversity of bulk products and in the first half, all fertilizers through the port were up 52.4% at 4.5 mt. Both potash and sulphur are seen as vital for world agricultural recovery. Badger says it appears farmers the world over haven’t been fertilizing their crops as much in an effort to save money. But, to ensure sustained crop yields in the future, a surge of demand is expected for fertilizers. Wheat shipments were up 19% at the half year at 3.5 mt while canola had dropped 17.6%. Overall, grain and specialty agricultural crops and animal feed were steady with only wheat showing signs that the world wants to eat with more gusto. Badger notes that more and more specialty crops, which need careful handling, and other break bulk products such as forest products are now going by container – up to 90% of all lumber shipments and 80% of pulp and paper in 2010. Vancouver has adopted a “cautiously optimistic” stance when it comes to looking ahead for its vaunted Asia-Pacific Gateway, but will be strengthened by the continuing demand for commodities from resource-rich Canada, at least through 2011. Alberta tar sands crude oil shipments pipelined to Vancouver for export in Afra-max vessels (largely around 80,000 deadweight tonnes, but below 120,000 dwt) increased by 14.7% in the first half of 2010 at 4.6 mt. Shipments largely go to US buyers in California, but also include the US Gulf Coast.

US Gulf
South Louisiana relies heavily on liquid bulk shipments to and from a rich port area on the mighty Mississippi River between New Orleans and Baton Rouge and total shipments were up 6% to the end of June, 2010. Crude oil continued to lead the way this year in the first six months at 26.1 million tonnes (about 24% of total throughput), while petrochemicals were close behind at 22.1 mt (20%) along with a surprisingly strong maize shipment sector of 23.3 mt (21%). Other bulk shipments include soybeans at 14.2 mt (12.8%), chemicals and fertilizers at 8.8 mt, coal at 2.2 mt, followed by ore/phosphate/rock shipments, concrete/ stone products, animal feed, steel products and wheat. It’s a healthy mix of bulk products and most seem to be in recovery, led by imports of crude oil, which were up 14% in the first six months of 2010 compared to the same period of 2009 when the recession was hurting the nation more. Maize exports were steady (down only 1%), while petrochemicals were up 12%. Barge calls in the port increased 11% in the six months at 25,278 to the end of June, while deep-sea vessel calls rose slightly at 3% to 1,838. The river region has one of the largest concentrations of heavy manufacturing in North America and there is abundant development land and a range of Louisiana State incentives available to lure more businesses into the port area. Another nearby US Gulf port, run by the Port of Houston Authority, revolves around North America’s largest petrochemical complex. Much of the future success depends on the continuing modernisation of the Houston shipping channel if the port is to maintain its edge over other US Gulf Coast ports as a major international port. The authority governs eight terminals and bulk movements were up a healthy 17% in the year to date to July 2010 at 5.9 mt and barge traffic rose by a similar 17% with 2,310 movements while container traffic rebounded by 8% and topped 9.8 mt. But, this is only a small part of the total port picture. As it is, the Port of Houston stretches 25 miles and is a diversified mix of 150 public and private facilities, all with easy access to the Gulf Coast. In 2009, the total port shipped over 199 million tonnes of cargo and had 7,700 vessels call. All cargo movements through June 2010 totalled 70.7 million tonnes indicating the port is still in the recession’s grip.

Long Beach
On the US West Coast, container movements dominate trade talk, but both the Port of Long Beach and the Port of Los Angeles still rely on bulk shipments as part of port diversification. At Long Beach, where total tonnage reached 70 million tonnes in 2009 – the lowest in five years – container traffic was recovering, up 22% by the end of July 2010. And while Director of Trade Relations, Don Snyder, says America never really stopped driving during the recession, the liquid bulk total was still half of what it was in 2006 (26.4 mt), with 2008 being the lowest level in more than a decade at 8.1 mt. With containers on a comeback, Long Beach reported total cargoes up 14.3% to the end of July 2010, but both liquid bulk and dry bulk numbers were still down by 2.3% and 5.5% respectively. One surprising resurgence came in coal shipments, which Snyder described as having been “dead for years.” That’s changing and Snyder says there’s been an “uptick in coal exports” through Long Beach. Coal trains are back from the Powder River Basin (Montana and Wyoming), Utah and Colorado. Tonnages are still modest, but from zero in 2007, they hit 280,000 tonnes in 2008, dropped to 67,000 tonnes in 2009 and were back up to 242,000 tonnes in the first seven months of 2010. Direct loading from the rail cars to the ships is done at Metro Ports Pier G, which also handles petroleum coke. Cement imports have all but dried up leaving two terminals idle as local production
is enough to satisfy the domestic demand. And taking advantage of empty containers heading back to Asia, soybean, animal feeds and even scrap metal are increasingly being loaded into the boxes based on supply and demand and other market conditions, says Snyder.

Los Angeles
Not far away at the Port of Los Angeles, where total tonnage was down in 2009 to its lowest level since 2003, about 8% total tonnage growth is forecast in 2010 as container traffic (responsible for 80% of the port’s revenues) bounces back in growing trade with Asia, particularly China. In 2009, liquid bulk reached 11.4 million tonnes, about half what it was in 2006, while dry bulk only reached 2 million tonnes from a high of 7 mt in 2000, but was still seen as “one of the better recent years.” The port hasn’t had a cement import shipment since 2008 because of declining building activity in California. Port of Los Angeles Marketing Manager, Marcel van Dijk, says 2009 was “very weak” for break bulk shipments which have been in decline since 2006. “I feel the recession is over as manufacturing activity is increasing, but the economy is still very weak in my view.” However, there are signs of life with break bulk steel imports up 249% at the end of Q1 in 2010 as buyers replenished depleted inventories of coils, steel slabs pipes and beams. And, van Dijk says he’s encouraged that a lot of previous break bulk export cargoes, such as scrap metal and cotton are now moving in containers. Over 1mt of scrap metal was shipped as break bulk, for example, but another 250,000 tonnes went by container in 2009. In liquid bulk, crude oil imports from Alaska and the Middle East feed nine local area refineries, which in turn satisfy 35% of Arizona’s needs and most of the oil requirement of Nevada.

East Coast
The major port complex of the US East Coast, the Port of New York & New Jersey is largely a container operation where bulk is secondary. The major liquid bulk sector – mineral fuel and oil – was down 15.3% in the year to June 2010 over the same period in 2009 at just over 2mt. The next major bulk mover, iron and steel, also dipped by 14.3% to 1.4 mt to June and the continuing decline comes on top of a 10.2% drop in 2009 over the previous year at 49.6 million tonnes. As a sign of the lingering recession, auto handling dropped a massive 40% to 617,831 units in 2009. However, if massive increases in percentage points mean much, New York & New Jersey have them for smaller bulk commodities such as rubber – up 140% to the end of June; salt, sulphur, earth and stone up 150%; wood pulp up 275%; and food waste and animal feed up over 1,900%, but that was only to just over 75,000 tonnes over June 2009. China continues to be the No 1 trading partner with the region.

Seaway
Celebrating its 50th year in 2010, the St Lawrence Seaway could look back on an economic downturn “like no other in our history,” according to its President Richard Corte. The  corporation posted the first deficit in its history with a shortfall of USD11 million, despite extensive “belt-tightening.” With 596 fewer vessel transits in 2009, the Seaway felt the impact of the recession on the North American steel industry and iron ore shipments to refineries declined sharply – down 57.7% or 5.3 mt on the Montreal/Lake Ontario section alone. Coal shipments were also down by 23% on that section. Canadian grain shipments dropped on slightly on the Seaway, but were boosted by bumper crops on the US side. This added another 650,000 tonnes (up 45%) through the Montreal sector and another 710,000 tonnes was carried through the Welland Canal. To the end of June 2010, the news has improved for most bulk cargoes. Iron ore is back and shipments reached nearly 4 million tonnes compared to only 1.9 mt a year earlier. Coal has gone from 780,000 tonnes to 1.1 mt, while other bulk is also slightly ahead of the slow pace of the first two quarters of 2009. There was even better news on the US side, with US-flagged lake ships total tonnage up 53% in the first half of 2010. The strongest increase has come in iron ore, while grain has also shown an uptick and could go higher as the market responds to Russia’s wheat crop exports being curtailed by severe drought.

Montreal
Meanwhile, bulk movements through Canada’s second largest port, the Port of Montreal, were ahead at the June 2010 half year by nearly 8% overall. Dry bulk was up 13.7% at 2.6 mt, but liquid bulk slipped 2.9% to 3.5 mt compared to 3.6 mt a year earlier. Iron ore handled by Contrecoeur Terminal showed amazing growth, jumping by 376% compared to the same period of 2009. Montreal handled 7.7 mt of liquid bulk, 2.9 mt of dry bulk and 2.4 mt of grain in 2009.