Under this agreement, Port Hedland Port Authority (PHPA) will upgrade to the latest web-based DUKC Series 5 software navigation technology and be OMC’s first client to have these new products, Optimiser and DUKC Chart Overlay, integrated into their DUKC Series 5 system. Rollout will begin in 2013. The initial DUKC Series 5 system was commissioned as operational in 2011 by the Australian Maritime Safety Authority (AMSA) to ensure shipping safety in Torres Strait. “This five-year contract will equip Port Hedland with new innovative tools to optimise the number of ships sailing on a tide,” said Dr O’Brien, who pioneered DUKC in 1993. “The port authority needs to manage increasing volumes through Port Hedland’s inner harbour, further exacerbated by the recent postponement of the Port Hedland Outer Harbour development by BHP Billiton, and these new technological developments will optimise the capacity of their existing channel. “The growth of our Western Australian iron ore ports and our east coast coal ports will put increasing pressure on the shipping regulators to use tides more efficiently as cargo volumes ramp up. “There is also great potential for these new DUKC applications to bring significant benefits to not only other Australian ports, such as Dampier and Hay Point, but also to ports overseas such as the major bulk ports in Brazil.” Optimiser allows scheduling of multiple ships on the one tide, subject to priorities, under keel clearance (UKC) constraints and tug and pilot availability, to safely maximise total tide tonnage. It will give ship operators greater flexibility in the timing of port visits and also reduce the workload for schedulers.

The development of Optimiser follows an approach from PHPA in late 2009. Since then, OMC has been working with PHPA on ways to optimise the sailing draughts and times of multiple vessels on each tide. This year, on June 18, six ships leaving Port Hedland set a new port loading record when they carried a combined total cargo of more than a million tonnes of iron ore on the one tide.”Under this new licence agreement, Optimiser will be further developed to include inbound shipping, as well as departing ships. It will help PHPA to manage the whole marine logistics task to maximize port capacity,” Dr O’Brien said. DUKC Chart Overlay increases pilot safety by forecasting and showing very clear “go” or “no go” areas within a pilot’s electronic charting package on their laptops taken onboard. “This is a world-first where “go” or “no go” areas for pilots have been based on dynamic under keel clearance (UKC) calculations and predictions,” Dr O’Brien said. Last week a team of Melbourne-based OMC engineers and software developers, led by O’Brien, flew into Port Hedland to start work on delivery of the Platinum Package. Other tasks include using the upgraded DUKC Series 5 system to help the port authority optimise the annual maintenance dredging requirements for the Inner Harbour, targeting critical UKC spots. DUKC systems are in some of the largest bulk, container and multi-cargo ports in the world, including the Pilbara iron ore ports in Western Australia. Beneficiaries include BHP Billiton and Rio Tinto.

This technology, which was first installed in Queensland’s Hay Point coal terminal in 1993, was introduced to WA (Fremantle Port) in 1994, with strong support from Fremantle’s Captain Eric Atkinson, Australia’s longest serving Harbour Master and now President of the International Harbour Masters Association (IHMA). BHP commissioned a DUKC system at Port Hedland in 1995, and other customised systems were installed at Rio Tinto’s Dampier Port in 1995 and, more recently, in Rio’s Cape Lambert port in 2010. Other WA ports with DUKC systems are Bunbury (1996) and Geraldton (1999). “DUKC is also in ports and waterways around the world, providing economic benefits totaling more than $10 billion to the users of these systems at a fraction of the cost and implementation time required for comparable dredging projects,” Dr O’Brien said. “In some cases, at certain stages of the tide, our systems can provide large ships with up to an additional 1 meter of draught. This means a typical container ship can safely load about an extra 600 boxes and a typical bulk carrier can carry more than an extra 10,000 tonnes. DUKC technology is so accurate that, under extreme weather conditions, a 250,000 tonnes carrier could negotiate a channel within a meter’s clearance to the seabed.” Today’s announcement of Port Hedland’s five-year ‘platinum package’ agreement, which features new products Optimiser and DUKC Chart Overlay, comes just three months after OMC launched its new ship motion measurement tool OMC iHeave.

A Philippines-based company, International Container Terminal Services (ICTSI), won the public tender to build and operate the container terminal for 30-years. The agreement was signed on March 2001 and the container terminal began operations three months later. ICTSI offered minimum lease payments of close to R$340 million or USD175 million (NPV during the concession period) equivalent to a 244 percent premium over the minimum lease amount of R$100 million (USD51.5 million). At the time, this was a record premium for Brazilian port privatizations. Between 2001 and 2007, ICTSI invested approximately US$80 million in human resources, information technology, equipment, sheds and patios for storing general cargo and containers.

The investments resulted in an increasing and continuous flow of container cargo. Brazil’s 1993 Port Modernization Law initiated major reforms to increase the competitiveness and efficiency of Brazilian ports. The government of Pernambuco sought to make Suape a container hub that would attract trans-shipment cargo. For years, northeast Brazil had experienced above average economic growth. Trans-shipments offered Suape an opportunity to leverage this economic development and capturea larger share of the containerised trade that originates in or is destined for locations within the region. Suape is Pernambuco’s most important port, strategically located at the intersection of the main commercial long-haul routes linking the eastern coast of South America to other continents, as well as routes connecting Brazil’s north and south regions.

The port was established in 1978 as an integral part of an industrial development zone. It comprises 13,500 hectares, and is located 40 km south of Recife, the state capital. In 1997, the state and federal governments financed a major infrastructure investment program to build the infrastructure needed for a deep draught regional hub. In 2000, Suape decided to launch an international bid to award a concession to develop a container terminal. The transaction was structured as a 30-year non-renewable concession with clear requirements regarding the level of service quality and the transfer of assets back to the state at the end of the contract. The lessee was obliged to secure financing, procure and install equipment, and operate the terminal as a common user container terminal open to all carriers, operators and cargo consignees. Since trans-shipment tariffs are generally market driven, there were no limits on tariff
rates. Of the nine groups that prequalified, three presented proposals: ICTSI of Philippines, Consorcio Sotes (composed of Grupo Dragados, JCPM and Agunsa), and the Port of Barcelona. ICTSI presented the highest commercial proposal of R$340 million (USD175 million), equivalent to a
244 percent premium over the minimum lease price of R$100 million (USD51.5 million). At the time, this was a record premium for Brazilian port privatizations. The company’s expected investments totalled R$548.2 million (US$282 million), with an additional R$200 million (US$103 million) for infrastructure. ICTSI indicated that it would develop the port as a trans-shipment hub for the northeastern region and expects to be shipping over half a million TEU annually by the
end of the concession period in 2031.

The post-tender results included the following:
• US$80 million in investments between 2001 and 2008.
• In 2006, SUAPE was certified as one of the safest ports in the country.
• SUAPE earned ISO 9001/2000 certification in 2004, and ISO 14001/2004
certification in 2005.
• Annual movement capacity increased from 75,000 to 400,000 containers
in seven years, well above forecasted scenarios.
• Infrastructure is designed to reach an annual throughput of 1.5
million TEU by 2031, as opposed to the 400 thousand TEU that were
initially forecast.

The new equipment will primarily be used for container operations at the terminal and promises to enhance current productivity levels through its speedier and improved technology.

Christina Van Dyk, Terminal Manager for CTAR said the equipment will replace a 14 year-old Gottwald MHC mobile harbour crane which will be relocated to their sister terminal in East London.

“We are excited to have this new state-of-the-art Liebherr mobile harbour crane as part of our equipment fleet. The crane has an advanced lifting capacity of 120 tons, with twin lift capability and is faster than its predecessor, the Liebherr LHN400. The crane also boasts more advanced safety features which will improve cargo safety,” said Van Dyk.

The crane arrived on board the MV Paula vessel on Thursday, 8 November 2012 and will rotate between Berths F and G, the terminal’s high performing container berths. Van Dyk says the procurement will significantly improve the terminal’s operations and she envisages the new equipment will result in a GCH* improvement of 20% over the next 12 months.

To ensure skilful operation of the high-tech equipment, six CTAR operators have undergone training in Durban on how to operate the crane, signalling an increase in skills development within the terminal. One of the operators, Sibulela Makili says, “We are thankful for the training TPT has provided us with and we are excited to operate the equipment which will contribute positively to the terminal’s performance.”

CTAR, which features multi-purpose and agricultural cargo handling facilities, is one of the country’s most efficient terminals. The investment valued at R48 million is aligned to the Transnet Market Demand Strategy (MDS) which will see TPT invest R33 billion in capital projects over the next seven years, with a focus on beefing up infrastructure in the terminals. 

Velile Dube, General Manager: Operations for the Western Cape said: “The new Liebherr crane will drastically improve the reliability of CTAR’s service offering to shipping lines and improve productivity and vessel turnaround times.”

Dube added that the new equipment will also enable the terminal’s management to target new business opportunities with confidence in the service offering.

The state-of-the-art equipment will revive the Durban Container Terminal (DCT) and result in improved efficiencies and reduced service times for vessels calling at the terminal.

TPT’s Acting Chief Executive, Pru Archary says, “Today we celebrate a milestone with the delivery of three mega cranes, the largest of their kind deployed at any container terminal in the Southern Hemisphere. This acquisition will make DCT Pier 2 the first terminal in Africa to operate tandem lift STS cranes which reaffirms our commitment to delivering world class port services in Africa.”

The three cranes were procured from Chinese-based Shangai Zhenhua Heavy Industries Co (ZPMC) and arrived on board the Zhen Hua 27 vessel on Tuesday, 20 November 2012. The equipment is part of a fleet of seven tandem lift STS cranes procured to renew port terminal handling equipment in an effort to boost South Africa’s flagship terminal, DCT. The remaining four cranes will arrive early in the new year.

A dedicated team headed by TPT’s General Manager of Capital Projects, Logan Naidoo, has over the past 15 months been intimately involved in ensuring that high quality design standards had been engineered into the cranes. Naidoo says, “These cranes have been designed to take us into the next 20 years of the port’s longevity and are capable of servicing the latest generation container vessels with a span of 24 containers across the deck.” 

The cranes are fully compatible to service the next generation megamax vessels that will be able to dock at DCT’s North Quay once it’s deepened, which is planned for the near future. In addition to the standard twin-lift 20 foot container crane handling operation, DCT’s new STS cranes are able to lift 2×40 foot full containers or 4×20 foot (empty) containers in tandem during vessel operations across the quay. With its 80 ton safe working load, this new dual-hoisting, tandem-lift technology is expected to boost port productivity.

These cranes will ensure that DCT is taken as a serious player in the global shipping fraternity and its arrival is a major milestone in the delivery of Transnet’s Market Demand Strategy (MDS). Naidoo says, “TPT has R33 billion worth of capital projects planned over the next seven years, with a key focus on upgrading infrastructure at various terminals and replacing aged equipment. The investment in the tandem lift STS cranes, valued at R700 million was prioritised as one of TPT’s top ten capital investment projects under the MDS.”

Hector Danisa, DCT Terminal Manager, said: “The terminal has eagerly awaited the arrival of the cranes and the terminal has formulated an operational plan to put them to good use as soon as they are fully commissioned by the capital projects team. As part of the readiness preparations, a group of terminal operations and technical staff have travelled to Shanghai, China, for orientation training. As with all new technology, there will be an initial learning curve before the cranes are operated at “full speed” and we are confident that our crane operators will put these cranes into good use.”

Danisa also highlighted that apart from the benefits the equipment will have for the terminal, its acquisition has also created an opportunity for a local engineering company as well as young engineering graduates. In line with Transnet’s tender policy, the recipient of every tender is required to produce a Competitive Supplier Development Plan (CSDP).

The awarding supplier, ZPMC, has selected emerging port equipment spares and maintenance company, Elgin Marine Services (EMS) as their CSDP partner. In turn, EMS has employed and will mentor and develop 11 young newly graduated engineers from previously disadvantaged communities to whom skills will be transferred.

Photo credit: Roy Reed