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TTS continues improvement of results

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TTS Group has reported gradually improving operating results in all three quarters of 2016.

“We believe that we will continue to benefit from the positive effects of our improvement program. Combining our ambition to maintain and grow market positions with our continued focus on synergies and operational efficiency, with a goal to reduce operating cost with 100 MNOK across the Group, we expect a positive development going forward,” says Toril Eidesvik, CEO of TTS Group ASA.

Among what pleases Eidesvik, is a strong 3rd quarter order intake. The order intake increased 23% from last quarter and 30% compared to the same quarter one year ago. The increase is mainly in business units Container/Bulk/Tank and Shipyard Solutions.

Total turnover in the third quarter of 2016 was MNOK 741, compared to MNOK 805 in the same period in 2015. The reduction (8%) is particularly a result of reduced activity within the offshore sector.

Reduced exposure towards offshore
The third quarter confirms the improvement achieved in the business unit Offshore, which has moved from an operating loss of MNOK 80 the first three quarters last year to break even this year. This is due to closing of loss making projects in 2015, as well as the extensive downscaling activities implemented. TTS expects a weak offshore market in the foreseeable future, and the Group’s exposure towards the Offshore sector, which today represents less than 10 percent of the turnover is considerably reduced.

“We continue the efforts to develop a more flexible organization that can move resources between segments, and thereby be better suited to scale activity by market changes,” Eidesvik emphasis.

Challenging market
TTS has an order backlog that gives close to full capacity utilization for most business units through the remainder of 2016. In 2017, TTS expect that the weak general market outlook for the marine equipment segment will influence the company, leading to a lower level of activity. The company see particular short-term challenges within the car carrier and heavy lift segments, while the market for shipyard solutions remains strong. For the services sector, TTS see a large potential for further development of both the spare parts sales and the general service activity.

“Despite a challenging market for marine equipment, we have a strong market position, global presence and a comprehensive and diversified product portfolio. Together with committed competent colleagues, it creates a strong platform for future growth when the market improves,” says Eidesvik.

DEME and Royal IHC win Innovation Award for world's first LNG powered dredging vessels

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The DPC Innovation Awards consisted of 13 categories looking at the most innovative and forward-thinking projects that the dredging and port construction industry has to offer. DEME and Royal IHC won the award in the “Innovation in Dredger Design” category.

Since a few years, DEME has embarked on a comprehensive fleet expansion programme and a number of vessels are currently being built to significantly increase efficiency, both in terms of productivity and environmental performance.

Alain Bernard, Director and CEO DEME Group: “DEME continues to be at the forefront of the industry when it comes to innovative solutions, operational excellence and limiting the impact of its activities on the environment. The TSHD ‘Minerva’ and ‘Scheldt River’, currently under construction at Royal IHC, will be the first dredging vessels in the world that will be equipped with dual fuel engines and capable of operating in full LNG mode. Both dredgers will have a Green Passport and a Clean Design notation and will comply with the strictest international emission requirements. We are very pleased with this award recognising both Royal IHC and DEME for the efforts the teams put into designing and building sustainable solutions.”

“IHC started to investigate the possibility of running a TSHD on LNG in 2012,” adds CEO Royal IHC, Dave Vander Heyde. “We are therefore delighted to be building the world’s first LNG-powered hoppers, and to be contributing to DEME’s ambition to remain at the forefront of the industry. We are proud to have been awarded this prize and want to thank DEME for their trust and cooperation. In addition, we will continue to develop and deliver sustainable solutions in order to further limit the environmental impact of our customer’s vessels and equipment.”

This LNG-powered dredgers are a perfect example of how the combination of forward-thinking and strong cooperation between a contractor and a vessel and equipment manufacturer pays off.

Two percent container volume increase at SC Ports

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SCPA handled 169,477 TEUs in October, an increase from 164,734 TEUs moved during the same month last year. Fiscal year to date, SCPA’s container volume reached 689,753 TEUs, a year-over-year increase of 1.73 percent.

As measured in pier containers, or total boxes moved across SCPA’s docks, fiscal year-to-date volume is up by 6,227 containers. SCPA handled 95,608 pier containers in October, bringing total volume to 388,883 boxes since the fiscal year began.

“Our incremental container volume increase in October is reflective of a worldwide slowing in container trade, but we are optimistic that growth will resume in both imports and exports as the Southeast economy grows,” said SCPA president and CEO Jim Newsome. “We also expect major emerging market economies to restore growth in demand based upon strength of a growing middle class.”

In non-containerized cargo volume, Charleston handled 76,029 tons in October. Charleston breakbulk volume is 10.2 percent ahead of fiscal year-to-date plans, with 293,780 tons handled since July.

Inland Port Greer handled 9,211 rail moves last month. The facility’s rail volume is up 25.5 percent since the fiscal year began, with 35,427 rail moves handled between July and October.

“Amid the shifting structure of the container industry, including consolidations of major carriers and an extremely difficult financial picture, SCPA is well-prepared to meet the demands that will be required of top 10 U.S. ports going forward. Bigger ships will be deployed across fewer services, and our port is making the necessary investments in cranes, terminal infrastructure and capacity, and harbor deepening to meet these requirements,” Newsome said.

Board Action
In action items, the Board approved funding for the conclusion of the Advance Gate System installation at the Wando Welch Terminal as well as total implementation the North Charleston Terminal in February 2017. The Board also approved contracts related to construction and security services for the Leatherman Terminal, installation of bracing on three ship-to-shore cranes and the purchase of an aerial lift for rubber-tired gantry crane repairs.

Crane Commissioning
Yesterday evening SCPA celebrated its two new super post-Panamax cranes with a lighting show and fireworks display on the dock of the Wando Welch Terminal. The cranes, which offer 155 feet of lift height above the dock, were produced by Shanghai Zhenhua Heavy Industry Co., Ltd.in China and delivered to SCPA in August.

SCPA has ordered two additional ZPMC cranes of this size for delivery by the end of 2017 and plans to raise four of its existing cranes to the same height.

“We are planning for two shipping services with 14,000 TEU vessels to call Charleston by mid-2017, which will be a game-changer for the East Coast ports,” Newsome said. “By the end of next year, SCPA’s $44 million wharf strengthening project to handle larger ships will be complete, and we will have eight cranes with 155 feet of lift height capable of handling two 14,000 TEU ships simultaneously.”

SCPA also expects construction to begin on the first phase of its 52-foot harbor deepening project to begin by the end of next year, making Charleston the deepest harbor on the East Coast by 2020.

Bremenports wins ESPO Award 2016!

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Looking back at the selection process in this 8th edition of the ESPO Award, the Chairman of the Jury, Pat Cox, said: “All the projects are good examples of port development combined with an ecological consciousness. In the jury’s assessment process of the nature conservation and enhancement programmes of the competing ports we looked to law and regulation for guidance but beyond the law also for a deeper sense of conviction, values and commitment.” He further said that every port entry is a winner when a port commits to combining economic and operational activities with the protection of its natural environment and the opening up of that resource to its host society and users.

The theme of this year’s ESPO Award was ‘Nature in Ports’. Bremenports GmbH & Co. KG won the 2016 Award for its project, Luneplate, which is the first project to implement large and varied tidal habitats behind the main dyke in connection with a special flood barrage. The project is an excellent example of an integrated approach combining economy and ecology, bringing world port development requests together with the needs of a very sensitive environment, i.e. the UNESCO World Heritage Area “Wadden Sea”. On the basis of intensive stakeholder communications, a sustainable solution has been created that will also be successful under the conditions of climate change. Intensive monitoring stated the effective implementation. The comprehensive visitors’ concept opens the area to the public and provides transparent information. Last but not least, the Luneplate project is an example of organisational changes to a better societal integration of ports.

Reflecting more specifically on the bremenports project, the Chairman of the Jury said: “The Luneplate project has managed to turn the negative environmental impact caused by several former port extensions and infrastructure projects in Bremerhaven into actions ensuring both environmental aspects and social needs. In the Port of Bremen, nature protection goes hand in hand with the economic development.”

Picture caption (from left to right): Robert Howe, Managing Director bremenport; Isabelle Ryckbost, ESPO Secretary General; Uwe von Bargen, Environemental Director bremenports; Henrik Hololei, Director General DG MOVE; Eamonn O’Reilly, ESPO President and Pat Cox, Chairman of the Award Jury.