Ports America announced it will purchase a 30 percent stake in ITS (International Transportation Service, Inc) through a strategic partnership with “K” Line (Kawasaki Kisen Kaisha, Ltd). Date of the transfer will occur after regulatory approvals, expected in late August 2014.

Ports America, the largest terminal operator and stevedoring company in the United States, provides stevedoring services to “K” Line in Oakland for containerships and in Jacksonville, Newark, Brunswick and Charleston for car carriers.

“We are pleased to extend our relationship with “K” Line through this investment,” said Ports America President/CEO Michael Hassing. “Ports America realizes the significance of innovation and the need for continued capital improvement and expansion.”

After receiving regulatory approval of this partnership, the two companies will work together, introducing and utilizing Ports America’s expertise and industry-leading technology and safety programs in ITS’ gate, yard and vessel operations. Ports America’s highly experienced management team also will apply its successful business development and market growth strategies to expand the container terminal’s business.

ITS is a wholly-owned subsidiary of “K” Line that has operated container terminals in Long Beach and Tacoma for more than 40 years.

The existing container terminal in Port of Kamsar in Guinea is being extended.

NIRAS Fraenkel – the subsidiary of NIRAS in England – is consulting engineer for the design. A design basis, tender design and a full detailed design have been prepared in three months to meet Guinea Alumina Corporations fast-track programme for the project.

Existing and new structure

The project has seen several interesting technical challenges.

“The exciting thing about the project is devising and detailing workable and buildable technical solutions for the connection system between the existing and new structure,” says Charles Magnan, Project Manager in NIRAS Fraenkel and continues:

“There is very little room for additional transverse raker piles to be added without interfering with the existing piles and this required very detailed analysis of forces on the structures and careful detailing of the pile groups. Two separate anchoring systems had to be used to join the new Port to the existing.”

Finished in three months

Guinea Alumina Corporations will use the new area for import of goods, materials and plant for the construction of a new bauxite export jetty located nearby and for unloading heavy equipment for an alumina refinery being constructed up country.

The project started in April with the completion of the tender design in May and the full detailed design was finished by the beginning of July 2014.

NIRAS Fraenkel has just been awarded the Project Management Consultancy to supervise the works for the duration of the construction.

The project – supported with an USD 60 million loan from the European Bank for Reconstruction and Development (EBRD) to support key infrastructure and develop grain export potential in Ukraine – will be implemented jointly with Louis Dreyfus Commodities, a global leader in agribusiness, according to an agreement signed by the two companies, which intends to establish a joint venture for the development and management of the terminal and related activities.

In addition to addressing the shortage of modern, deep-water port grain trans-shipment capacity in Ukraine, the terminal will benefit the region by creating jobs and increasing economic activity in the Port of Odessa area.

Due to record grain harvests in Ukraine in recent years (around 60 million tonnes in 2013) the country is becoming an important global grain supplier.

“We know how important the agribusiness sector is for the economy of this country. The Bank is very pleased to support this venture, which is the product of a partnership between a major international commodity trader and a leading local stevedoring operator. It demonstrates that foreign and local investors have confidence in the sector and in Ukraine,” said Sevki Acuner, EBRD Director for Ukraine.

“The project has both regional and national significance. This investment will strengthen Odessa’s position as a major grain handling hub and support economic growth in Ukraine. It is part of the EBRD’s strategy to support integrated transport solutions in the countries where we work,” said Sue Barrett, EBRD Director – Transport.

The container performance drove a 2% rise in general cargo to 8.88MT.  Conventional traffic contributed 1.41MT with a 3% improvement led by incoming project cargo, but ro-ro fell 6% to 1.84MT due to industrial disputes at ferry operator SNCM in January and June. 

Dry bulks gained 8% for 6.75MT, including 4.83MT (+12%) relating to ore imports for the steel industry.  Meanwhile wheat exports rose by 139% to leave agro-bulks 11% better on 0.54MT.  A new trade in fertilisers launched in June will boost volumes in this sector by 150,000T per year.

The oil-led liquid bulks sector was 11% down on 22.61MT after throughput of crude oil and petroleum products fell 13% to 20.85MT – some 3MT less than the first half last year.  The drop was pegged by a 24% rise in refined products to 6.45MT, which represented 31% of oil volumes in a trend that looks set to continue in the coming months.  Otherwise crude imports for national refineries fell 23% to 10.21MT, crude for South European Pipeline delivery was 16% down on 1.11MT, LNG slumped 30% to 2.1MT and LPG was 6% worse at 0.98MT.  Liquid chemicals and agro-products provided the sector’s other bright spot with a 7% rise to 1.75MT based on soda, benzene and ethylene exports. 

Passenger throughput slipped 3% to 956,000 despite cruise numbers climbing 18% to 587,000.  Ferry carryings fell 24% to 369,000 – a loss of 29,000 passengers compared to the same period last year – with the SNCM dispute in June alone resulting in a 34% deficit.