This is the first of this recently released model delivery into the UK. Forth Ports group have been using SENNEBOGEN port material handlers ( supplied by E H Hassell & Sons Ltd ) in their operation since 2008. More than 15 million tons of goods are handled each year at the Port of Tilbury, London’s largest port. All manner of construction materials, bulk goods, paper and wood products as well as a large number of shipping containers are handled by the port every day.
Newsome's State of the Port predicts decisive five years ahead for SCPA
In his seventh address at the annual Propeller Club of Charleston event, president and CEO Jim Newsome reflected on the volume and revenue gains that well-position SCPA to face the challenges ahead for South Carolina’s public port system.
“Within the state, we are an economic driver and strategic asset that should be a source of pride for our shareholders, the people of South Carolina,” Newsome said. “From a competitive standpoint, we offer the best product at the lowest cost in the U.S. port industry. Our above-market growth is an achievement that has positioned the Port as a strong and visible global brand and will continue to pay dividends to the state and region’s economies.”
SCPA reported a nearly 15 percent fiscal year-over-year increase in container volume in 2015, handling 1.9 million twenty-foot equivalent units (TEUs). Charleston breakbulk grew 7 percent over planned volumes, with 900,000 pier tons handled during FY2015. A record-breaking 253,338 vehicles moved across SCPA docks, up 15 percent from the previous record of 219,900 vehicles in FY2008.
Newsome highlighted SCPA’s significant financial growth over the last five fiscal years, including a 75 percent increase in revenue from $112 million in FY2010 to $196 million in FY2015. During that time, operating earnings jumped from $8.4 million to $30 million, and pier container volumes, or boxes handled, increased from 741,000 to 1.095 million.
Newsome said SCPA’s ability to build upon this success over the next five years will be decisive for the Port. Strong fundamentals within the Southeast region will support the Port’s aggressive goals, providing a growing consumer population base that creates demand for imports as well as an expanding manufacturing industry that requires deepwater for heavy export cargo. Included in SCPA’s long-range goals is the climb from top-ten to top-five U.S. container port volume ranking by the end of the decade.
Planned volume gains are also linked to Charleston’s compelling opportunity to serve big ships calling the East Coast. With alliances among the major shipping lines firmly in place and 90 percent of new ocean vessels to be built for 7,500 TEUs or greater, shippers will become increasingly dependent on ports to offer deep and wide harbors for reliable access. The expansion of the Panama Canal and raising of the Bayonne Bridge in New Jersey, both slated for completion next year, will also bring post-Panamax vessels to the Southeast in greater frequency.
SCPA’s efforts to deepen the Charleston Harbor to 52 feet are on schedule, with a firm focus on expediting the Preconstruction Engineering and Design Phase of the project. Construction is expected to be completed by 2020, enabling Charleston Harbor to offer shippers 24-hour access to 48 feet of draft.
In addition to the completion of harbor deepening, SCPA will also focus on investments to terminal capacity and infrastructure, including construction progress on the Navy Base Terminal and Wando Welch Terminal wharf strengthening project. Newsome cited the State of South Carolina as a committed partner in the Port’s long-term success, with planned investments in port-related infrastructure including harbor deepening, the Navy Base Terminal access road, and Intermodal Container Transfer Facility.
“Significant investment is required to be a major U.S. container port, and earning adequate return on capital will be a challenge for us in the years
ahead,” Newsome said. “In addition to maintaining above-market growth and delivering high value for the reliability and cost of service we offer, there are a number of actions required to realize these investments: an improved contractual structure and revenue model from port clients; firm
prioritization of capital expenditures; and an inward focus on organizational streamlining, effectiveness and productivity.”
Newsome cited a successful trucking community and support of both Class One rail carriers serving the Port as critical to SCPA’s long-term ability to handle growing container volumes. SCPA extended gate hours in February and maintains low truck turn times to support productivity of the trucking industry, a key asset of freight movement. SCPA’s efforts to grow rail volumes have been successful, with 22 percent of SCPA’s container volume handled by intermodal rail in FY2015. Newsome pointed to improvement in intermodal infrastructure as essential to the Port’s ability to attract cargo, as inland transportation costs play a key role in global supply chain decisions.
Expansion of the Port’s cargo base will drive planned volume increases, Newsome said.
In addition to the cargo that naturally flows through South Carolina’s port facilities, SCPA will continue to pursue discretionary cargo, including Midwestern agriculture products and plastics from the Gulf. Private sector investment in port-related infrastructure is critical to serve these growing
markets.
“In order to expand our cargo base, the Port must continue intensive efforts to connect the dots between major economic development opportunities, our capable harbor, and the necessary infrastructure to serve growing markets,” Newsome said. “Our Inland Port in Greer is a great
example of this. The facility saw tremendous success in its first full fiscal year of operation and will likely be expanded in FY2017, and I envision
opportunities to consider additional inland port locations in the future.”
Other long-term investments for the SCPA include progress on the Jasper Ocean Terminal (JOT), which represents the next major increment of Southeast container port capacity. Newsome pointed to the significant capital requirements necessary for the terminal to be realized, including deepening the Savannah River to at least 52 feet and providing adequate road and rail infrastructure with access for both Class One railroads. The JOT Joint Project Office is expected to begin the permitting process for the terminal later this fiscal year.
“The next five years bring great opportunity for our port,” Newsome said. “By 2020 we will complete the harbor deepening project to 52 feet, open
Phase One of the Navy Base Terminal and enjoy an operational dual-served intermodal container transfer facility. Delivering on our priorities and
aggressive action will be required to meet these goals. The Port has a highly talented and skilled workforce, and with the commitment of our entire maritime community, I am confident that SCPA’s best years are ahead.”
Charleston Harbor Deepening Project receives final U.S. Army Corps of Engineers approval
The report by Lieutenant General Thomas Bostick, Commanding General of the U.S. Army Corps of Engineers, to the Secretary of the Army outlines the recommendation of deepening the Charleston Harbor channel to 52 feet and entrance channel to 54 feet, as well as enlarging turning basins to
accommodate for post-Panamax vessels calling South Carolina Port Authority’s (SCPA) container terminals. After review by the Secretary’s office, the report moves to the Office of Management and Budget for review and then to Congress for review and authorization, expected early next year.
“Receipt of the Chief’s Report is tremendous news for SCPA,” said Jim Newsome, SCPA president and CEO. “By the end of the decade, we will achieve 52 feet of depth and Charleston will be the deepest harbor on the East Coast. This depth advantage will provide our customers with 24-hour access to deepwater, a requirement for significant long-term volume growth in today’s big-ship environment. We are grateful for the expertise and leadership of our partners, the US Army Corps of Engineers, who deliver today’s news just four years after we began the deepening process.”
The Preconstruction Engineering and Design (PED) phase of Charleston Harbor Deepening received federal funding in July and will begin in earnest with the signing of a Design Agreement between the Corps and SCPA. This federal investment will allow the Corps of Engineers to proceed with work in order to finalize the project design and produce construction contract documents. PED is the final major step in the technical work for deepening before dredging begins.
“South Carolina, the Southeastern region and our nation will enjoy the positive impacts of the Charleston Harbor Deepening for years to come,” said SCPA Board Chairman Bill Stern. “Today’s announcement reflects the dedication and united support of state and federal elected officials and the Obama Administration. This project ensures SCPA remains a competitive, growing port well into the future.”
Efforts to deepen the Charleston Harbor began in 2011 in order to provide the depth necessary to handle post-Panamax vessel calls without tidal restriction. In 2012, the SC General Assembly set aside the full estimated state share of the deepening construction costs, and the project was named was named one of President Obama’s “We Can’t Wait” initiatives.
Fierce competition drives improvements
Port of Tauranga
· dredging to begin to accommodate larger vessels
· purchase of new handling equipment announced
· 11.9% increase in container throughput in first half 2015
New Zealand’s largest container gateway – the Port of Tauranga – is to commence dredging work that will allow it to accommodate larger ships with capacities of up to 6,000 TEU. According to Mark Cairns, Chief Executive at port of Tauranga, over the past 23 years Tauranga has been a consistent best-performer returning excellent results for shareholders, but before the port’s board of directors would approve the USD46.3 million for the dredging, it wanted surety. The board was looking for a commitment from a container shipping company or large shipper to warrant the costs associated with the dredging works. The approval came in June 2014, when Cairns signed a contract with Kotahi – a freight management
company owned by major New Zealand dairy exporter Fonterra and meat exporter Silver Fern Farms – committing to 1.8 million in export TEU to Tauranga. In addition, Kotahi signed a 10-year agreement with Maersk Line for 2.5 million TEU of export cargo with the global shipping line. In return, the liner agreed to introduce a new service and add capacity. With his 10-year agreement Cairns fulfilled the board’s request for commitment of the dredging works. The signed agreement is worth an estimated USD3.3 to USD3.9 million, with the port gaining certainty of container volumes, an additional 30,000 TEU from the start of the 2015 financial year, and additional empties. It is also the port’s first 10-year collaboration with Maersk. Maersk on the other hand hopes to lift Kotahi’s committed 2.5 million TEU of export cargo over 10 years and to introduce more cost-effective, 6,500 TEU container vessels at the end of 2016, when dredging in the port will be completed. The tender to deepen and widen the shipping channels from 12.9m to 14.5m depth inside the harbour and 15.8m outside the harbour was awarded to Danish dredging company Rohde Nielsen. Rohde Nielsen will use a combination of a trailer hopper suction dredge and backhoe dredge to tackle the world which is
scheduled to commence in October 2015. The project will be completed by August 2016. The dredging project is the final element in a USD228 million capital expenditure programme over the last five years to facilitate New Zealand’s exporters and importers being able to access larger ships calling at the port. The huge investments made at Tauranga are simply aimed at taking containerised cargo away from the Port of Auckland. According to Cairns, the Port has recently taken possession of two new tug boats and announced the purchase of a further two super post-panamax gantry cranes and straddle carriers in order to cope with the anticipated increase in container volumes. It is also currently extending its Sulphur Point container berth. Once the dredging works and the extension to the container berth are completed expectations are that as of early 2017 the port will see container volumes increase. “That’s when Maersk brings in the bigger ships, at which time all the containers will come around the coast to our Tauranga container terminal and out of here on to the big ships,” said Cairns. In the first half of this year the port has already seen an 11.9% increase in container throughput compared to the same period in 2014 by handling 426,512 TEU. Unfortunately, the port of
Auckland will fiercely defend its container business and has already stepped up its actions by constructing an intermodal freight hub only 3km away from the port of Tauranga. This new 1.4 hectare hub will give exporters another choice as it features a direct rail connection to Auckland, container handling facilities and value-added logistics services. This move of establishing an intermodal hub so close to the port of Tauranga to protect its container business is a similar move we have seen 16 years ago when the port of Tauranga pioneered an inland port close to the port of Auckland.
Ports of Auckland
· container volumes up 3% in first half of 2015
· break-bulk volumes up 7.7%:
· automation plans being considered
Statistics compiled on the performance of all New Zealand container ports show Ports of Auckland is now unequivocally the best performing container port in the country. Back in April this year Ports of Auckland CEO Tony Gibson said: “We have been the fastest port at loading and unloading ships for three years now, but our crane rate (how fast an individual crane works) has lagged behind. This quarter we’ve caught up with Tauranga on that measure.” This result demonstrates the effectiveness of the approach taken by the port since 2011 to improve performance. Better still, we have plans in place to lift our game even further,” he added. Part of those plans include automation being seriously considered – if it goes ahead Auckland would be first automated container port in New Zealand. According to Gibson: “Auckland freight growth is relentless. To handle it we’ve pushed our performance to world class levels but we’re reaching the limit of what we can do with our current technology. We need more room. We can’t go out so we need to go up, and for that automation looks the best bet.” The proposal would involve the use of
15m tall automated straddle carriers (3m higher than the port’s existing machines) which would carry out the less complex tasks in the container yard. The more complex operations under the crane would continue to be performed by manual straddles. “Automation has the potential to deliver capacity, cost and environmental benefits,” said Gibson, “but it would have an impact on jobs. Up to 50 jobs could be lost, although we would work hard to reduce this number. Staff turnover, growth in the business and some changes to the way we work would help us keep this number as low as possible. My priority is to ensure our people are looked after and helped through any change that may occur,” he said. Preliminary work carried out by Ports of Auckland has shown that the idea has merit. Unions were previously advised that automation was being investigated and staff are now being consulted. Consultation will take around six weeks. A scoping study to produce a detailed proposal for partial automation will be carried out and will take about three months. The results of consultation and the scoping study will be taken into account when making a decision on whether or not to proceed further with automation. Subject to gathering all the information needed during the scoping study, a decision will be made in early 2016, following a second round of consultation.
The results for the first half of 2015 show container volumes rose 3% against an expectation that volumes would fall as a result of the loss of a significant service and given the impact from congestion at overseas ports. Freight volumes in all other areas increased, with the largest rise being in imported car units which were up 19%. “The company’s high productivity and proximity to market had been key factors in retaining existing business and attracting new customers”, said Gibson. Looking forward, freight volumes are expected to continue to rise as Auckland’s economy and population grow. To meet this demand Ports of Auckland is embarking on a strategic capital investment programme. Fergusson container wharf is being extended to cater for longer ships. A new truck facility has been built to speed up container handling and rail services to the inland port at Wiri have been quadrupled, resulting in 3000 fewer truck movements a month to and from the terminal. The port is making significant investments in rail and the off-port supply chain – at Wiri and Longburn intermodal freight hubs. The multi-cargo business has grown rapidly, particularly car imports which are up 19% from the previous year and cement imports which will roughly double in 2016. More freight and longer ships are putting pressure on the berths in this part of the port, so Ports of Auckland will extend two be
rths on Bledisloe Multi-Purpose Terminal to provide sufficient
capacity for future growth. Construction was scheduled to start in April and is expected to be completed by late 2016. Later this year work will start on a new tug berth to the west of Jellicoe wharf. The existing berth will be vacated which will create the potential to open the area up for public access once it is no longer needed for tugs and freight. “The work we have done to improve productivity will be complemented by these new
investments,” said Gibson. “They will enhance our capacity and enable us to cater for increased demand as it eventuates.”