Mediterranean turnaround in more ways than one comes through the United Nations' disruptive and costly IMO 2020 low sulphur fuel rule
 There has been a revival of interest in the Mediterranean ports as road and rail infrastructure improves in southern Europe, putting distribution plans in the realm of reality when before they were only the pipe dreams of Spanish, Greek and Italian port promoters.
Not that southern transport infrastructure comes close to matching that of the mature, and rapidly developing facilities offered by ports of the Northern Range, but new factors have come into play that have aroused renewed interest Med ports.
The big one, of course, is IMO 2020, the new United Nations low-sulphur fuel rule that takes effect January 1, though it is unlikely to be strictly enforced before March 1.
The fact that bunker costs are to go up 30 to 40 per cent, now makes a Mediterranean turnaround more attractive than ever - rather than facing the traditional circumnavigation of the Iberian Peninsula to dock at the distant ports of Le Havre, Antwerp, Rotterdam or Hamburg and only then, have the goods railed, trucked or barged south.
While carriers per se have yet to make any big moves, not so terminal operators. Signalling renewed interest has been aroused with Singapore's global port operator PSA International taking majority control of Genoa's Terminal Sech, the city's second largest container terminal, adjacent to PSA Genova, the city's main terminal. Eurogate’s La Spezia have launched major promotional efforts in the Far East to divert cargo from the Northern Range.
The consolidation comes as rivals in the region - including MSC, Cosco and Maersk units - debut new container facilities in what is becoming a crowded market serving the hinterland of northern Italy, southern France and beyond.
PSA is to take up to 40 per cent of in Sech from Gruppo Investimenti Portuali (GIP) to give it majority control. The facility has an annual capacity of 550,000 TEU while the neighbouring PSA Genova, in which ownership is split 60:40 with GIP, has a 1.6 million TEU capacity.
Another sign is APM Terminals Barcelona's move to acquire 29 new straddle carriers from Konecranes Noell with a lifting capacity of 50 tonnes up to three heights, featuring twin lifting system machines, in a move that will increase capacity and operational performance in all areas of the terminal.
These straddle carriers are equipped with the latest technology, including a PLC system that includes a Creon-S safety controller and a next generation engine that will allow APM Terminals Barcelona to save on fuel and reduce its CO2 emissions. Likewise, all machines are prepared to be automated during an upcoming phase.
This investment plan is part of Maersk's APM Terminals strategy to refurbish its current fleet and increase its equipment's capacity and productivity, as well as improve the safety of the Barcelona terminal. Two new STS superpostpanamax cranes from Los Angeles have also recently been purchased.
So far, this is the largest investment made in the Barcelona terminal for this type of equipment. With these investments, APM Terminals Barcelona renews its commitment in the Port of Barcelona, providing it with the equipment necessary to operate the most modern container ships that currently stop-over in the Catalan capital.
It should be remembered that it was Barcelona that first sought to divert ships from the northern range 20 years go, when a delegation came to Hong Kong and other shipping centres in Asia to extol the virtues of docking in the western Med and rail freight north into France, hoping that returning containers would be filled with French wine. At the time, all came unstuck because of the lack of interoperability of Spanish and French rail gauges, long since erased by the implementation of European Union norms.
Perhaps the most intriguing development along this line was revealed in the largely successful application for terminal expansion from the Chinese-controlled Piraeus Port Authority's (PPA) in Greece.
While the Greek Port Planning and Development Committee turned down Cosco's plans for a new container terminal, saying "conditions at this stage are not ripe for implementation", it approved most of the proposed US$670 million upgrade. At the time of the qualified regulatory approval, Cosco expressed confidence that the idea of the container terminal would be settled positively once changes were made to the plan.
Cosco acquired a 51 per cent of PPA in 2016, and the port authority has seen positive financial results under new management, with 2019 first half profits up 20 per cent year on year.
Said PPA chairman Yu Zenggang: "We have obtained the approval to proceed to the implementation of significant investments that will make Piraeus the most important port in the Mediterranean and will create even more new working positions."
PPA's latest version of the master plan calls for a new cruise ship terminal, a new car terminal and a fourth container terminal, which would have increased total TEU capacity from the current seven million TEU to 10 million TEU.
Responding regulators, Mr Yu said: "We hope that the competent authorities will soon review the expansion of the container terminal as it is one major investment that will establish the Piraeus port as one of the top container terminals in Europe."
Clearly, Cosco via Piraeus, has expansive plans as it sees the port "as one of the top ports in Europe". Dove-tailing with this thought is usual insightfulness of Manila's International Container Terminal Services Inc's (ICTSI), soon ready to receive both ships of 20,000 TEU and already docking short-sea feeders at its Adriatic Gate Container Terminal (AGCT) in the Port of Rijeka which expanded earlier this year. Total terminal yard capacity will be increased up to 600,000 TEU per year in line with demand.
This Croatian port with road and rail facilities serving a hinterland to Slovenia, Northern Italy and Austria. The Rijeka Port Authority, and AGCT have drawn up plans for a two-phase dredging scheme with the first phase fully-approved, entailing the dredging of 130 metres of quay over its berths 1 and 2. This will facilitate the berthing of vessels with a length overall (LOA) of up to 400 metres. The work is due to be completed by mid-2020 and will provide 438 metres of berth with a depth alongside of 15 metres. The second phase foresees additional dredging alongside the 438 metres of quay to a depth of 16.5 metres.
"We have decided to do this against a background of steady demand but, more importantly, to keep pace with the requirements of our clients in terms of both ship size and a rise in intermodal rail activity," said AGCT chief executive Wojciech Szymulewicz.
"The capacity expansion will also deliver an overall boost to efficiency levels at the terminal, building upon the strengths we have already established in terms of vessel and truck turnaround as well as intermodal rail connectivity," Mr Szymulewicz said.
New superpostpanamax cranes with an outreach of at least 24 rows, will be introduced as part of the berth upgrade; and new rubber-tyred gantries (RTGs) and prime movers introduced on the landside.
Work is also ongoing to upgrade AGCT's on-dock rail terminal to offer an annual capacity of 360,000 TEU per year. The upgraded rail yard will feature two new rail-mounted gantries (RMGs) over four rail lines. The upgrade will be completed in the last quarter of 2019.
These are just some of the developments along the southern shores of continental Europe that indicate something is afoot and shows a Mediterranean turnaround in more ways than one. |
