The Victorian Government, Australia has released a new strategy outlining its five-year priorities to turbocharge growth in the state.
The plan, ‘Navigating our Port Futures: The Victorian Commercial Ports Strategy’, is a response to the Independent Review of the Victorian Ports System, actioning the industry desire for a state-wide vision for the sector.
Objectives and actions will be reviewed and updated every five years over the 30-year horizon of the strategy.
Key priorities in the next half decade include: supporting capacity growth at the Port of Melbourne; Port of Hastings multi-use facility; Station Pier and the future of Victoria’s cruise shipping, and Geelong channel optimisation.
On the state’s container sector, at the Port of Melbourne, the strategy wrote: “While the Port of Melbourne is privately operated, the state has a role in working with the private operator to support its planning processes to accommodate projected container growth.
“The Victorian Government is also responsible for delivering potential road and rail upgrades which ensure that the State’s transport system is capable of meeting projected freight capacity growth.”
The strategy hinted at further information as to a second potential container port at Bay West also. Land use and transport planning protections “must be progressed” to preserve Bay West as a viable future location for Victoria’s second container port, the report noted.
“Government will formulate and implement a roadmap to deliver planning protections to secure necessary land and protect Bay West as a future container port,” it added.
The Port of Melbourne welcomed the release of the Victorian Commercial Ports Strategy.
“The strategy is a welcome recognition of the important role Victoria’s ports play in the economic wellbeing of Victoria and the surrounding regional areas of both mainland Australia and Tasmania,” Port of Melbourne CEO Saul Cannon said.
“We believe the strategy provides a strong framework for the ongoing operational success and development of the Port of Melbourne, and in turn this will help ensure we can continue to meet the trade needs of Victoria for decades to come.”
The next tranche of international container terminal capacity will be required at the Port of Melbourne around 2030 “if we are to meet Victoria’s forecast trade demand and we will be working closely with the Government and port stakeholders in the years ahead to deliver the infrastructure needed,” Cannon said.
In May 2022, the port saw total container throughput (full and empty) decline 6 per cent over the same period the previous year, with a total of 271,053 TEU. Year-to-date container volumes were also down 1.9 per cent.
A permanent two-way checkpoint has been opened at port Vostochny for crossing the state border of the Russian Federation by sea, says press center of FSUE Rosmorport. The limits of the checkpoint have been approved by the Order of RF Ministry of Transport dated 21.03.2022 (No 87).
The reconstructed checkpoint is located at the terminal of Eastern Stevedoring Company LLC. It has been fitted with equipment for borer, customs and other types of control.
Within the limits of the border checkpoint, there are 4 plots of land owned by the Far East Basin Branch of Rosmorport and 4 berths leased out to the sea terminal operator. In the first half of 2022, throughput of those terminals exceeded 3.6 million tonnes making 9.1% of the total turnover in port Vostochny. Exports accounted for 49.8% of the operator’s throughput, imports – for 44.6%.
The latest update on the progress of the third phase of Shahid Rajai port complex development plan shows an increase in the nominal unloading and loading capacity of the container terminal of this port from 6.3 million to 8.4 million TEU.
PMO News Portal – As part of the third phase of Shahid Rajaee port complex development plan, the third basin of Shahid Rajaee port along 1400 meters of wharf will be built, which has the capacity to berth ships with a tonnage up to 18,400 TEU.
The development of the third phase of Shahid Rajaei port complex is planned to be to be completed by the end of the year (Iranian calendar). the plan includes the completion of the final stage of the construction of wharf, the completion of dredging operations, and the installation of wharf facilities with a physical progress of 94%.
Promoting the status of Shahid Rajaei container port in competition with other ports in the region is one of the other benefits of the full implementation of the third phase of Shahid Rajaei port development plan. the main targets of the port complex development plan include increasing the nominal unloading and loading capacity of the container terminal from 6.3 million TEU to 8.4 million TEU, construction of three wharves with a length of 1,400 meters, dredging of basin No. 3, and landscaping and construction of infrastructure and superstructure facilities in an approximate area of 113 hectares.
The marine cargo industry continues to be rocked by the global pandemic, supply chain issues, fluctuating rates, fuel costs, port congestion and the Russia/Ukraine war that has no immediate end in sight.
When normalcy in the industry will return is anyone’s guess, but hopefully – with a slight alteration to one of Abraham Lincoln’s favorite sayings – “These, too, shall pass.”
Ports involved in the roll-on, roll-off sector, however, aren’t waiting for things to pass and are pushing forward with infrastructure improvements to handle the anticipated rebound, especially with automobiles.
On the Move
At the Georgia Ports Authority’s (GPA) Port of Brunswick, for example, things are on the move at Colonel’s Island, one of the nation’s largest auto import terminals. “No other ro-ro terminal in the U.S. can scale up like Colonel’s Island,” says Bruce Kuzma, GPA’s Senior Director of Trade Development for Ocean Carrier & Non-Container Sales, “which features 355 acres permitted for expansion. From channel improvements to new dock space, additional warehousing and greater vehicle-processing capacity, GPA is building the necessary infrastructure in Brunswick to grow along with our customers.”
GPA recently received federal approval to add a fourth berth at Colonel’s Island. Kuzma says the project is currently in the engineering stage and is expected to be completed in 2025. The new berth will allow the port to more efficiently accommodate the 7,000+-unit vehicle carriers that are becoming the industry standard at U.S. ports.
Improvements are also underway beyond the berth including two warehouses totaling 350,000 square feet to serve vehicle-processing and high-and-heavy storage needs. The buildings will support both import and export cargo. Anticipated completion is April 2023.
Like the container sector, ro-ro ships are getting bigger with the largest having capacities of 8,500 units.
Ro-ro traffic at the Port of Virginia is up as shippers look for safe havens from the escalated rates and capacity constraints on the container side, says Aaron Katrancha, Director of Breakbulk & Ro-Ro Sales: “Two of our long-time customers, ACL (Atlantic Container Line) and WWL (Wallenius Wilhelmsen), are building their businesses and increasing their ro-ro volumes moving over Virginia. The conversion of the Portsmouth Marine Terminal into the logistics hub for the Mid-Atlantic’s offshore wind-to-energy industry will definitely create an increase in ro-ro business as well, but that won’t take effect until late next year.”
High-and-Heavy Boom
From the shipper’s perspective, the boom in imports of heavy construction equipment from Europe is helping offset any falloff in ro-ro deliveries.
“When the $1 trillion USA Infrastructure Investment & Jobs Act was signed into law in November 2021,” says Andy Abbott, ACL’s President & CEO, “most experts had anticipated a nine-month lag while project specifications were written and put out to bid. However, the supply chain turmoil of the past year prompted most manufacturers to try to get a jump on the expected boom in construction equipment cargo volume. Oversized import cargo had already been picking up during 2021, but we were caught off-guard by the surge that began in January 2022 and continued to grow with each passing month.”
In other words, the current situation is one of demand exceeding supply. “Ships are now booked out completely with North American imports for eight weeks in advance,” Abbott adds, “yet project specifications are still on the drawing board. The major construction equipment manufacturers are looking to lock in more space, but that’s difficult to do when cargo volume, prices and costs continue to rise.”
He says what happened in the container markets during the past 18 months is now hitting the high-and-heavy market: “Customers who were ‘burned’ by lack of container space last year do not want to make the same mistake again on oversized cargo.”
And the peak is nowhere in sight. “We’re probably at least a year away from that,” Abbott says. “Luckily for now, operators of car carriers have opened up more space for high-and-heavy cargo because of the reduced car volumes associated with semi-conductor shortages. However, the semi-conductor problem will soon be fixed. When that happens, the huge backlog of automobile orders will quickly gobble up a huge amount of the available car carrier space, reducing the space for high-and-heavy cargo significantly.
Meanwhile, on the North American export side, high-and-heavy volumes had begun to pick up at the start of 2022. Since then, however, the impact of the war in Ukraine has cut cargoes into Russia, Ukraine, Belarus and their neighbors to the south. Most units initially destined for those countries are now being diverted back to the U.S.
“As long as the war drags on,” says Abbott, the North American high-and-heavy export market will stagnate. But if the war could be brought to a peaceful conclusion, the construction and agricultural equipment boom would be significant.”
Ro-Ro Revival
Meanwhile, after a pandemic-related decline of 23 percent in 2020, the Port of Galveston’s ro-ro tonnage has fully recovered and is projected to grow in 2022, says Rodger Rees, Galveston Wharves Port Director & CEO.
Located on the Gulf of Mexico, the Texas port moves all types of ro-ro cargoes including new cars, agricultural and construction machinery, heavy equipment and household goods for military service men and women returning from overseas. Ro-Ro accounts for about 10 percent of Galveston’s cargo. Wallenius Wilhelmsen, “K” Line and American Roll-On Roll-Off Carrier (ARC) are some of the ro-ro shippers that regularly call on Galveston.
In 2021, the port invested in infrastructure improvements at its West Port Cargo Complex to consolidate operations and accommodate more large ro-ro construction and farming equipment. The project included new paving, dock repairs, an equipment processing center and an industrial wash pad for equipment exports. The complex is designed to handle a wide range of cargoes including ro-ro, large wind turbine pieces and grain with rail service, laydown areas and more. New imported BMWs are prepared at a separate vehicle-processing center at Pier 10.
“The complex provides direct access to major interstate highways and rail lines, making it an ideal location for efficiently moving ro-ro cargoes to their final destinations,” says Rees.
Sunshine State
The Port of Jacksonville (JAXPORT) is also gearing up to further grow its massive auto business. “The investments underway to increase our auto capabilities, combined with rapid population growth in the southeast U.S. and Florida in particular, make us well-positioned to build on our role as one of the nation’s top vehicle-handling ports in the coming years,” notes Alberto Cabrera, JAXPORT’s Director of Automotive, Cruise & Cargo Development.
Cabrera says demand for vehicles is not slowing down and is likely pent up due to dips in supply stemming from the lingering parts shortages impacting the industry: “While we never want to see volumes decline, the current industry slowdown makes for an ideal time to build new facilities. We couldn’t have picked a better time to make these long-term strategic improvements including the Southeast Toyota expansion and the buildout of our ro-ro berths. We’re building the auto-processing infrastructure now to be ready to serve the needs of the industry when volumes rebound.
In 2019, before the pandemic, JAXPORT moved nearly 700,000 vehicles – a port record. “Over the next three to four years, we expect to return to and surpass pre-pandemic levels, retaining our role as one of the largest vehicle-handling ports in the nation,” Cabrera adds.
The most recent development at Port Tampa Bay is a new tenant, North Atlantic International Ocean Carrier, says Wade Elliott, Vice President for Business Development.
“They’re a North American vehicle transportation and freight forwarding company that has facilities at various ports in the U.S. and Central America,” he explains. “They’re leasing property for the storage and transloading of vehicles for export to Central America. Among the services they will be supporting is the Dole Ocean Cargo Express service to Honduras and Guatemala, which began calling Tampa last July.”
No Delays
At the Port of San Diego, which handled 361,008 autos in 2021, the speed and efficiency of vehicles being off-loaded at the National City Marine Terminal hasn’t been affected by supply chain issues, says Greg Borossay, Principal, Maritime Business Development.
“Both rail and truck services out of this terminal continue to function smoothly,” he says. “There are no waits for vessels and no delays in operations. We’re continuing to see regular business with Mexico including Toyota Tacoma pickups from Tecate,” San Diego is still moving more volume than any of the West Coast auto-processing ports, he adds.
The National City Marine Terminal is now the focus of an environmental review phase for a project that will help improve operations, increase maritime commerce and add maritime jobs.
“The new land use plan will include a road closure that will provide the terminal with more contiguous space to improve terminal efficiency,” Borossay says. “It will also include rail efficiencies with connector track.”
The port has also been working on a project to study ways to improve mobility and safety for users of Harbor Drive, a main link between the two cargo terminals and maritime industrial businesses on the waterfront, and plans to add shore power infrastructure at the National City Marine Terminal.
The Board of Port Commissioners recently approved a public/private project for the acquisition of a bonnet to curtail air emissions. The bonnet will be manufactured and delivered in 18-24 months. This will supplement, not replace, the planned shore power.
Port of Los angeles handled more than 5.4 million TEUs at the mid-point of 2022, matching last year’s record-setting pace. Photo from Port of Los Angeles
Port of Los Angeles moved a record 876,611 TEUs in June, edging out its best June in history last year. Neighboring Port of Long Beach also achieved its most active June and busiest quarter on record, moving 835,412 TEUs
LA Port handled 5.4 million TEUs by mid-2022, matching last year’s record pace. Port of Long Beach moved 5 million TEUs during the period
LA Port executive director Gene Seroka attributes the record figures to the port’s success in cutting ship queues by 75%, allowing workers to handle more vessels. Long Beach Port credits China’s lifting of COVID lockdowns for the strong trade
Port of Los Angeles moved a record 876,611 twenty-foot equivalent units (TEUs) in June, edging out last year’s best June in the Port’s 115-year history. Nearby Port of Long Beach equally achieved its most active June and busiest quarter on record, moving 835,412 TEUs.
LA Port has handled more than 5.4 million TEUs at the mid-point of 2022, matching last year’s record-setting pace. Port of Long Beach moved 5 million TEUs in the first half.
The two ports announced their results as hundreds of independent truck drivers protested at the gates of the two California ports against the newly passed state law, AB5 or the “gig worker” law, which sets tougher standards for classifying workers as independent contractors.
“Halfway through the year, we’ve been able to reduce the number of vessels waiting to berth by 75%, allowing dock workers to efficiently process more vessels,” said Port of Los Angeles executive director Gene Seroka.
“We’re already beginning to handle back-to-school, fall fashion and year-end holiday goods. Despite inflation and higher-than-usual inventory, we expect cargo volume to remain robust the second half of the year.”
Seroka announced the June numbers at a media briefing, where he was joined by Retired Gen. Stephen R. Lyons, the recently appointed port and supply chain envoy to the Biden-Harris Administration Supply Chain Disruptions Task Force.
Lyons discussed supply chain challenges across the United States and what is being done to improve the movement of goods and help bring down costs for American families.
June 2022 loaded imports reached 444,680 TEUs, a 5% decline from the previous year, but 12% higher than the previous five-year June average.
Loaded exports came in at 93,890 TEUs, down 2.3% from the same period last year. American exports out of the Port of Los Angeles had declined in 39 of the past 44 months.
Empty containers reached 338,041 TEUs, an increase of 8.1% from last year.
The busiest seaport in the Western Hemisphere, the Port of Los Angeles is North America’s leading trade gateway and has ranked as the No.1 container port in the United States for 22 consecutive years.
The Port of Long Beach also achieved its most active June and busiest quarter on record, boosted by increased consumer demand as retailers stock shelves for back-to-school shopping.
The 835,412 TEUs that dockworkers and terminal operators moved in June was up 15.3% from the same month last year and surpassed the previous record set in June 2018 by 83,224 TEUs.
Imports rose 16.4% to 415,677 TEUs, while exports saw a 1.4% decrease to 115,303 TEUs. Empty containers moved through the Port jumped 21.6% to 304,433 TEUs.
The Port moved 5,007,778 TEUs during the first half of 2022, up 5.3% from the same period last year. It was also the port’s best quarter overall with 2,547,119 TEUs moved from April 1 to June 30, breaking the previous record set during the first quarter of 2022 by 86,460 TEUs.
“We are anticipating a robust summer season as consumer demand continues to drive cargo to our docks,” said Port of Long Beach executive director Mario Cordero.
“We expect to remain moderately busy in the coming months, and we will work to promptly process containers lingering at the port.”
“Our waterfront workforce continues to move cargo at a record-setting pace,” said Long Beach Harbor Commission president Steven Neal. “Our strong partnerships with labor and industry continue to make us a leader in trans-Pacific trade.”
The cargo influx arrived as pandemic-induced shutdowns were lifted in China, retailers stocked up on back-to-school supplies and ongoing consumer demand continued to be robust despite inflation and the potential threat of an economic recession in 2023.
Congestion at US West Coast ports hit the headlines last year as it reached record levels with vessels waiting more than three weeks to berth at the key ports of Los Angeles and Long Beach (LA/LB) with severe pressure on the supply chain. However, the latest edition The McCown Report by Blue Alpha Capital said that the port congestion situation in the US had morphed from primarily impacting the West Coast to impacting all coastal ranges.
According to the report the total number of containerships waiting to berth at US ports had fallen from a peak of 150 at the start of the year to 125, however, many more vessels waiting at facilities on the East Coast.
“While the West Coast represented over two-thirds of containerships wating for berths in January, it is only one-third now as the ships at anchor and resulting congestion has shifted eastwards,” the report said.
“The last month has seen an increase in this eastward shift and now Houston and New York have as many containerships waiting for berths a LA/LB combined.” The sharpest increase has been seen though at Savannah which now has 42 ships waiting for berths, six times the number the port can accommodate, translating to a typical 14 day wait at anchor.
By contrast LA/LB saw an average of 22 containerships waiting at berth during June, a 33% drop from May, and a 79% reduction from the start of the year.
The growth in congestion at US East Coast ports has been driven in part by deployment changes from US West Coast ports by shipping lines seeking to avoid delays at LA/LB and opting for the all-water route for shipments to the US East Coast. The threat of labour disruption at US West Coast ports with the ILWU contract covering 22,000 dockworkers expired at the beginning of this month has also “contributed marginally” to re-routing to the East Coast according to the report.
“The acceleration in the long-term shift that had already been occurring due to the underlying cost economics was driven by the early and major congestion on the West Coast.” McCown is of the view most of the loads that have shifted will continue to be routed by US Gulf/East Coast ports due to better underlying economics.
Going forward continued delays at US ports are expected, and the top largest US ports saw 5.9% increase in inbound volumes in July. “With containerships now waiting at all coasts and many ports operating near or at capacity, it seems clear that further will more consistently put strain on the US port system,” McCown said.
Austria has offered to contribute to the reconstruction of Beirut port alongside other European Union members.
The announcement was made by the Lebanon’s Presidency on 14 July.
Austrian Chancellor Karl Nehammer had previously met with Lebanese President Michel Aoun to discuss cooperation between the two countries, and submitted the offer.
“The port is very important, especially in light of the current food crisis; we have looked with Lebanese authorities into ways to cooperate in this regard,” Nehammer said.
Nehammer added he hoped that a new Lebanese Government would quickly form quickly so Austria could extend its ties with the country and provide necessary assistance in the port reconstruction – and food support in light of the Russia-Ukraine crisis.
President Aoun said that Lebanon welcomes Austria’s contribution to the port reconstruction while reiterating the country’s commitment to protecting the oil and gas wealth in the Exclusive Economic Zone in southern Lebanon.
He later thanked Austria for its participation in the United Nations Interim Force in Lebanon and its various donations to help Lebanon combat the COVID-19 pandemic.
Global Ports Investments PLC (Global Ports) has registered a 22.6 per cent decline in container throughput for the first half of 2022, as Baltic ports have suffered a significant loss due to the ongoing conflict in Ukraine.
According to the company’s statement, consolidated marine container throughput of came at to 611,000 TEU, well below 2021 figures from the same period which stood at 789,000 TEU.
Global Ports is a leading operator of container terminals in the Russian market by capacity and container throughput,.
The global and local geopolitical tension and a considerable decrease of calls by container carriers to the ports of Russia have heavily impacted the company’s results.
Against this backdrop, Russia’s container market in the Baltic Basin and the Group’s terminals in the country showed a considerable decrease of container, car, and RoRo cargo handling in the second quarter of the year.
Container handling in the Far East including the terminal of Vostochnaya Stevedoring Company (VSC) was more stable although negatively impacted by COVID-19 restrictions in China, said Global Ports.
A considerable fall was registered at the Ust-Luga Container Terminal, First Container Terminal, and Petrolesport. However, VSC in the Far East showed an increase of container throughput by 9.4 per cent to 274,000 TEU.
According to Global Ports, Russia’s container market has decreased by 17.3 per cent to 899,000 TEU in the first half of 2022. The steepest fall was seen in the Baltic region, 38.9 per cent down to 770,000 TEU.
The market outlook for 2022 in the Baltic basin remains well below 2021, while Far Eastern market is expected to be more stable, said the company.
“In the Baltic region the Group is concentrating on the utilisation of its terminals with non-containerised cargo as well as on cost management initiatives while key focus at VSC is on operational efficiency on the back of growing demand on logistics chains via Far East,” reads its statement.
Edda Wind’s new Service Operation Vessel Edda Goelo (C416) was launched at Astilleros Balenciaga shipyard in Spain on Friday.
Edda Goelo will serve as a mother vessel for wind turbine technicians as they perform maintenance work on offshore wind turbines.
When completed, the new SOV will start operations for wind turbine maker Siemens Gamesa at Iberdrola’s offshore wind farm in the Saint-Brieuc Bay off France in the third quarter of 2023. The vessel has a five-year contract with Siemens Gamesa, and its first assignment will be at the Saint Brieuc wind farm.
Unlike the other Edda Wind vessels, which are normally painted orange and yellow, the Edda Goelo will be painted blue and white, in accordance with the Siemens Gamesa’s profile colors.
The vessel can accommodate up to 40 maintenance technicians from Siemens Gamesa and Iberdrola, plus approximately 20 crew members from Edda Wind.
“The technicians perform scheduled maintenance activities and any other matters that may arise during the two weeks they spend at the wind farm. After those two weeks, the vessel takes the technicians back to shore and they are replaced by another team that spends another two weeks at the wind farm, so there are always technicians servicing the wind farm,” Edda Wind explained.Credit: Edda Wind
The launching ceremony in Zumaia, Balenciaga Shipyard’s headquarters, was attended by representatives of the shipyard, Siemens Gamesa, Iberdrola and Edda Wind.
“Launching is always a special moment in the building process and a milestone to celebrate. We are very pleased with launching our second SOV built by Astilleros Balenciaga, and to successfully witness Edda Wind’s second launch this year. Once again, we deliver on our ambitions for the company and the industry as a whole, Kenneth Walland, CEO of Edda Wind, said.
“This is Edda Wind’s first SOV to go on a long-term charter to Siemens Gamesa, and we look forward to working with one of the key players within offshore wind,” Walland added.
Edda Wind has a newbuild program of eight vessels in addition to Edda Breeze delivered in May this year and Edda Passat and Edda Mistral delivered in 2018. Balenciaga will deliver the first SOV, “Edda Brint” in August.
The Saint Brieuc wind farm, where the SOV will have its debut, with 62 SG 8.0-167 DD turbines, will have a capacity of 496 MW, equivalent to the annual electricity consumption of 835,000 people
Siemens Gamesa will maintain the Saint Brieuc wind farm for a minimum of 10 years. The contract includes, among other things, maintenance personnel, spare parts, and remote-control service.
“We are delighted to be able to have the Edda Goelo for the maintenance of the Saint Brieuc wind farm, which we are going to install for Iberdrola, and that this vessel has been built in Bizkaia, which demonstrates, once again, Siemens Gamesa’s commitment to the Basque Country,” says John Paul Larrañeta, CEO of Services for Southern Europe and Africa at Siemens Gamesa.
The data, according to a forecasting report released by the Chinese Academy of Sciences (CAS), places Shanghai top with the most throughput capacity in 2022.
CAS added most of China’s container ports hold growing demand for shipping services, including the Ningbo-Zhoushan port, as well as ports in Qingdao and Tianjin.
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