international shipping centre

Shanghai plan to become an International Shipping Centre by 2020

Shanghai are working towards becoming an International Shipping Centre by 2020. To achieve the target and raise the city’s core competitiveness, the local government has drafted a three-year plan.

One goal of the three-year plan is to further consolidate Shanghai’s status as an international shipping hub. In the Chinese mainland, the Port of Shanghai boasts the largest number of container shipping routes, the highest frequency of route operations and the widest network coverage. In 2017, cargo throughput rose 6.9 percent from 2016 to 751 million tons at the Port of Shanghai, while container throughput increased 8.3 percent year-on-year to 40.23 million TEUs, ranking first in the world for the eighth consecutive year.

At the same time, leveraging on the golden waterway along the Yangtze River, the Port of Shanghai is developing its waterway-waterway transport business and proceeding with its renovation project on high-grade inland waterways at a steady pace. Container lines connecting all ports along the Yangtze River are operated on a regular basis and breakthroughs have been made in the two-way navigation for large vessels along the deep-water passage at the mouth of the Yangtze River.

In 2017, waterway-waterway transport accounted for 46.7 percent of total container transfer. Among all, 10.58 million TEUs were handled along the Yangtze River, accounting for 56.4 percent of the total waterway-waterway transport and 26.3 percent of total throughput at the Port of Shanghai.

Another goal of the plan is to generally establish Shanghai’s status as an Asian gateway aviation hub. Shanghai has successfully built a “one city, two airports” system, the first of its kind in the country, whose scale and layout are compatible with their international counterparts.

The city’s two international airports, namely Pudong and Hongqiao, have a total of four terminals, six runways, 1.47 million square meters’ cargo area and an airport bonded zone, with a total designed capacity for 100 million passengers and 5.2 million tons of cargoes. Over 100 airlines have launched services to the city’s airports, which are now connected to 297 cities worldwide.

Transit centers of the three largest logistics companies are all under operation in the international cargo mail and courier service zones at the Pudong airport. In 2017, passenger throughput at Shanghai airports reached 112 million, ranking fourth around the globe. Cargo mail throughput at Pudong airport maintained its No.3 global ranking for the 10th consecutive year. Throughput of international passengers and cargo mail at Pudong airport accounted for one-third and half of the country’s total, respectively, making it the No.1 gateway in the Chinese mainland.

The third aim is to continuously improve Shanghai’s function of modern shipping services. A cluster of shipping service areas such as Waigaoqiao, Yangshan-Lingang, North Bund, Wusongkou, Hongqiao, and Pudong Airport, among which the shipping industry in Hongkou district ranks first in terms of its contribution to the district’s overall financial income, accounting for 19 percent of Hongkou’s public financial income.

A group of international and national shipping functional organizations have gathered in Shanghai. The world’s top 20 liner companies, the top four cruise companies, nine global shipping classification societies, and major State-owned and privately owned shipping companies have all set up headquarters or branches in Shanghai.

Shanghai Shipping Exchange has become the national container liner freight registration center and the China Ship Information Center. The container freight index has become a benchmark for the global container shipping market. The capability of maritime legal services has been continuously improved. The number of maritime arbitration cases in Shanghai accounts for 90 percent of the country’s total number of cases. Shanghai Maritime Court is striving to build an international maritime judicial center.

Source: Hellenic Shipping News / Global Times

Heathrow expansion

Heathrow expansion plans approved

The UK government has backed plans for the development of a new runway at Heathrow Airport.

The UK Cabinet’s economic sub-committee approved plans for a third runway at the London airport before the proposals were backed by the full cabinet.

The UK secretary of state for transport Chris Grayling said: “A successful, thriving aviation sector is critical to our ability as a nation to succeed, which is why we are developing a strategy to help it grow in a sustainable way.”

MPs of all parties will be asked to vote on the plans in the coming weeks.

The news was cautiously welcomed by freight forwarders.

Robert Keen, director general of the British International Freight Association (BIFA), said: “Hopefully, this news is the beginning of the end of years of procrastination over the expansion of UK aviation capacity.

“If that is the case, it is long overdue good news for our 1,500 member companies who have been dismayed over the ongoing delay on such a huge issue.

“However, we understand that MPs will now be asked to vote on the issue in the coming weeks and, given the track record of parliament on this issue over the last 20 years, uncertainties remain.

“Whilst the UK Transport Secretary has previously hinted at an expedited planning procedure, with no reopening of high level arguments, the inevitable legal challenges and the convoluted planning processes that are also likely, lead me to wonder whether any expansion will be completed by the time that UK aviation capacity is predicted to run out in 2025.

“I hope I am proved wrong, but I won’t be booking a ticket for the opening ceremony just yet.”

Heathrow chief executive John Holland Kaye said: “Together with our supporters across the country, we urge all MPs to vote for expansion.

“Their votes will connect all of Britain to global trade, increase competition and choice for passengers and create tens of thousands of new skilled jobs for future generations. The world is waiting for Britain. It’s time to vote for Heathrow expansion.”

However, it is not entirely certain that MPs could be relied on to vote in favour of the plan.

Boris Johnson, foreign secretary and member of parliament for Uxbridge, one of the regions that could be affected by an expanded Heathrow, said on one occasion that he would “lie down in front of the bulldozers” to prevent the new runway going ahead.

Many other prominent members of the Conservative Party are also against the plan, arguing that capacity at regional airports should be expanded instead of Heathrow.

Some Labour MPs are also opposed – despite the fact that a Labour Government had voted through an earlier version of the third runway scheme in 2009 – on environmental grounds, saying that it would breach air pollution and noise limits.

One possible solution for Prime Minister Theresa May is to allow Conservative MPs who oppose the plan to abstain, in the hope that there would be sufficient votes from other parties’ MPs to carry the plan through.

Bringing the long-running third runway saga to an end could be seen as a political coup for the minority Conservative government that has been grappling with the extremely thorny ‘Brexit’ issue over the last two years. It would also send a message that despite the UK’s exit from the European Union, the country is still open for business with the wider world.

There are also likely to be objections from local residents and environmental campaigners, who will argue that the plans will breach air pollution limits.

Grayling said it was a “historic moment”.

Announcing £2.6 billion in compensation for residents and noise abatement measures he said it would only proceed if air quality obligations were met.

“The time for action is now,” he told MPs, insisting the decision was being taken in the national interest and would benefit the whole of the UK – with 15% of new landing slots “facilitating” regional connectivity.

The scheme, he insisted, would be funded entirely privately and while the expansion was a “number of years away”, he believed it could be concluded by 2026.

The debate on expanding Heathrow has been going on for nearly 20 years.

The last Labour government backed the idea, and won a vote on it in 2009, but that plan was scrapped – and the idea of expansion put on hold for five years – by the Conservative-Lib Dem coalition formed after the 2010 election.

But the idea of expansion was resurrected and has been subsequently backed by the Conservatives. Ministers approved a draft national airports policy statement in October setting out the conditions for a new runway, Parliament has yet to give its approval for detailed planning to begin.

Heathrow is the largest UK port by value and has ambition is to become one of Europe’s best airports for cargo.

The UK economy benefits greatly from cargo, and Heathrow is the UK’s largest port by value for non-EU exports, transporting more than Felixstowe, Southampton and Liverpool.

They are also uniquely placed as a transatlantic and European gateway with 95% of the global economy potentially within reach of a direct flight from Heathrow. Nowhere is better placed to connect UK exporters to the world and help the UK achieve its target of doubling UK exports to £1 trillion by 2020.

Their strategy will lift freight volumes capacity to 3 million tonnes a year by 2040 through improved service and increased capacity from expansion. For cargo customers our aim is to become a trusted partner – timely, reliable and easy to do business with.

 

Source: Air Cargo News / BBC / Sky

port of felixstowe

Port of Felixstowe orders RTGs with automation and remote control technology

The order marks an important step for Hutchison Ports, which owns and operates the Port of Felixstowe in the UK, as it rolls out automation and remote control systems on STS cranes and RTGs at a growing number of terminals around the world. Last month Felixstowe received its first two remote controlled STS cranes (ZPMC).

The new RTGs will also be built by ZPMC, with Siemens drive, control and automation systems. Siemens is also supplying “simulation, virtual commissioning” and the Remote Control Operator Stations (RCOS), plus all engineering and on-site commissioning. Siemens confirmed to WorldCargo News that the cranes will be powered by a conductor rail. Felixstowe has converted some of its existing RTG fleet to eRTGs using Vahle conductor rails.

“Port of Felixstowe is currently extending their berths 8&9 and yard capacity. The ARTGs purchased will support the additional yard capacity required. Port of Felixstowe decided in order to reduce their ecological footprint to electrify the RTG-cranes and gradually introduce automation in the yard to improve safety and competitiveness. The new cranes will be taken in operation on the new blocks under development, which allows the terminal to continue its commercial operations as usual,” Siemens said in a statement.

Siemens has been promoting the concept of using “digital twins” to simulate and test crane systems prior to delivery, to reduce commissioning time on site. This will be used at Felixstowe, plans to put the automated RTGs into operation in the first quarter of 2019, a very aggressive target.

“Using digital twins of the cranes enables various simulations, allowing for flexibility and providing us the ability to test our automation systems against a virtual crane and simulated environment and create all sorts of work-through scenarios,” said Rink Groenveld, Head of Siemens Cranes Projecthouse. “Implementation of automation modules allowing for collision prevention and automated stacking, integrated safety solutions and Remote Control will lead to safe, productive and consistent operations in the container terminal. These unique features helped Siemens to be chosen as the preferred electrical and automation partner for this important terminal.”

Source: World Cargo News 

air freight

Record Cargo performance for Heathrow in April

London-Heathrow airport cargo volumes enjoyed their 21st consecutive record month in April 2018, as trade growth at the UK’s largest port by value increased by 2.3% year on year to 141,215 tonnes compared to the same time last year.

The US (+4.1%), India (+7.1%) and China (+10.9%)  were among the fastest growing countries for cargo in April.

For the January to April 2018 period, Heathrow handled 557,950 tonnes, 3.8% increase, while in the running 12 months from May 2017 to April 2018, the hub handled just over 1.7m tonnes, an 8.8% rise.

Heathrow chief executive John Holland-Kaye said: “We’re seeing more passengers and trade flow through Heathrow than ever before. A third runway is a tremendous opportunity to grab a greater share of this global growth for Britain and we’re counting on our politicians to seize it with a ‘yes’ vote on Heathrow expansion this summer.”

Source: Air Cargo News / Heathrow Media Centre

China flag

China to ban the recycling of international ships

China plans to stop allowing the recycling of international ships at its yards as of the beginning of 2019.

The decision comes on the back of China’s efforts to crack down on polluter and waste producing industries in the country, which have seen many yards denied their ship recycling licenses.

The Chinese-flagged ships will be allowed to continue to be dismantled at Chinese yards, however, the Government of China will no longer provide subsidies for the branch, as decided last year. Due to such a turn in policy, local owners are likely to look elsewhere to retire their ships, including India.

“In view of this, owners will have to succumb to the fact that, with the exception of Turkey, the H.K Convention approved recycling yards in Alang will have to be taken more seriously following the incredible improvements that have been made at these yards over many years and the fact that these yards now can only offer owners the only alternative at this current time for green recycling,” Clarksons Platou Shipbroking said.

Two years ago, industry leader Maersk committed to investing in Alang yards and boosting their operational standards to comply with the company’s requirements.

Chief Executive Officer of  A.P. Møller – Mærsk A/S, Søren Skou, said recently that some yards in Alang, India, are performing at the same level or better than yards in China and Turkey, “which used to be the only options for economically viable and responsible ship recycling. “

Explaining its approach, Maersk said that the company helps the yards to upgrade their practices while contractually requiring full implementation of its standards controlled by on-site supervision throughout the process as well as quarterly audits by third parties.

Even though the situation is far from perfect, especially when it comes to health hazards at the shipbreaking yards in Alang, Maersk believes that helping the yards to improve their standards is an opportunity to change the industry for the better.

However, for a more sustainable progress to be made more shipowners need to become involved.

From a total of 206 ships, which were broken in the first quarter of 2018, 152 ships were sold to the beaches of South Asia for breaking, according to NGO Shipbreaking Platform.

Despite a considerable improvement made by some shipbreakers, a great majority of south Asian yards are notorious for their poor environmental and healthy and safety practices.

It is quite common for workers to suffer serious injuries or even get killed due to exposure to various types of risks ranging from falling objects to intoxication.

So far this year, 10 workers have lost their lives and 2 workers have been severely injured when breaking ships in Chittagong, Bangladesh. Another two workers were reported dead after an accident at a shipbreaking yard in Alang, India, data from NGO Shipbreaking Platform shows.

Source: World Maritime News

air pollution

Ports and Shipping need to curb air pollution

RealWire, an online media presence, has this week issued a press release related to using proven existing technology to curb UK Shipping and Port Industry air pollution.

According to RealWire, providing renewable electricity to ships whilst in port in the UK could reduce the equivalent of 1.2 million diesel cars worth of nitrogen oxides pollution and bring £402 million per year of health and environmental benefits.

By plugging into the power grid with 100 per cent renewable electricity and turning off their diesel engines, ships at berth in the UK would reduce emissions equivalent to 84,000 to 166,000 diesel buses – or 1.2 million diesel cars representative of the current UK fleet.

The pressure is mounting for the UK to align with EU air pollution emission targets, and ships at berth need to cut their fuel consumption and port authorities and terminal operators need to integrate shore power capabilities in a simpler and more efficient way.

Schneider Electric supports decarbonisation through its business efforts, this has led to a sponsored study into the emissions from idling ships at berth in UK ports that affects the quality of the air we breathe. Often neglected as source of air pollution, ships spewing toxic emissions near to coastal towns and cities puts people and the environment at risk.

While road transport pollution garners public prominence because it is so visible in our everyday lives, we should not underestimate the impact that portside emissions have on the environment and the cost of keeping society healthy. Offshore supply vessels, fishing boats, roll-on-roll-off, bulk carriers and passenger ferries contribute the most to the emissions from auxiliary engines at berth. The emissions from all vessels’ auxiliary engines at berth in UK ports in 2016 is estimated to be equivalent to nearly 2.6 per cent of the total transport sector emissions of nitrogen oxides in the UK. The best estimates of these emissions from auxiliary engines are 830,000 tonnes of carbon dioxide, 11,000 tonnes of nitrogen oxides (NOx), 270 tonnes in particulate matter and 520 tonnes of sulphur dioxide.

There were approximately 110,000 buses and coaches in the UK fleet in 2016 and the study has found that ships’ auxiliary engines at berth are equivalent to the nitrogen oxides and particulate matter emissions equivalent to 84,000 to 166,000 buses and coaches representative of those currently in the UK fleet, respectively.

Dirty air has been linked to asthma symptoms, heart disease and even lung cancer. It has been linked to dementia and is also known to increase the risk of children growing up with smaller lungs. Meanwhile, 59 per cent of the UK pollution – 40 million people – live in areas where diesel pollution threatens their health, according to Friends of the Earth. Global deaths linked to ambient air pollution are estimated to have increased by just under 20 per cent since 1990, while 95 per cent of the world’s population is now breathing toxic air, according to a recent study by the 

Health Effects Institute while the Royal College of Physicians has found that air pollution in the UK contributes to 40,000 deaths per year. The UK could bypass a major health hazard as well as avoid health and environmental impacts of up to £402 million per year through the elimination of nitrogen oxides, sulphur dioxide and particulates – using the introduction of shore connections at UK ports. If all the emissions from the auxiliary engines at berth from these vessels were reduced to zero by replacement with power from 100 per cent renewable electricity sources, the value in reducing emissions would be between £136 million and £483 million per year.

“The UK is one of the last global regions to introduce shore connections at its ports and it will take industry collaboration and innovation to bring forward the introduction of portside electricity in a quick and sustainable manner. There is now a global standard for shore connections and it is up to our ports now to catch up with the global norm and demonstrate that we truly believe in a cleaner, healthier future,” says Peter Selway, Marine Segment Marketing Manager at Schneider Electric.

While health conscious countries like the UK are employing proactive policies to help curb the dangerous impacts of air pollution and the ongoing efforts to alleviate roadside toxic fumes is indeed noble, the long-term impact of the shipping industry should not be ignored.

Globally, the partnership between the Port of Seattle and the shipping industry has seen annual CO2 emissions being cut by up to 29 per cent annually in the port, with financial savings of up to 26 per cent per port call. Meanwhile, shore connection capabilities have been mandatory for all ships at berth in California since 2010 and by 2020, at least 80 per cent of berths have to be equipped with shore connection technology.

The shipping industry itself has been receptive to plugging in at port and Schneider Electric’s technology has assisted La Meridionale to achieve a 95 per cent reduction in its berthside emissions. Danish ferry group Scandlines, meanwhile, has seen an overall energy saving of between 10-14 per cent in its equipped vessels.

“It is time now to adopt a new way of thinking and embrace, as an industry, the benefits that shore connections and portside electricity can bring quickly and cost-effectively. We are fortunate enough to have the technology at hand and we must put it to good use,” Selway concludes.

global port

Global container port demand rising

Drewry’s latest five-year global container port demand forecast is 4.3% per annum, up from last year.

The maritime consultancy made the announcement in its summary of the key trends and developments in the global container port and terminal industry.

Projected port capacity expansion is 2.7% per annum, so average utilisation levels will rise, said Drewry.

Neil Davidson, senior analyst ports and terminals at Drewry, pointed out, however, that there is a strong focus on optimisation of existing facilities as opposed to building new ones and that terminal operators are focusing on cost control and efficiency to maintain project margins.

Drewry’s latest assessment of port throughput indices showed that the global index fell in September 2017 but was 10 points up on September 2016 and 12 points up on 2015.

Mr Davidson said that the growth rate in 2017 showed a sustained upward trend.

North America and Latin America showed the highest annual increases, 12.6 and 11.1 respectively, while Europe had the lowest increase at 4.4%.

The top five global terminal operators were calculated as being PSA International, Hutchinson Ports, DP World, APM Terminals and China Cosco Shipping.

According to BIMCO, the worlds largest international shipping association, container shipping has shown strong growth forecasts supported by equal demand so far this year, 

Source: Port Strategy / Port Technology

emissions

Shipping emissions to be halved by 2050

Following on from our earlier article concerning shipping emissions, over 170 countries reached agreement on Friday (13 April) to reduce CO2 emissions from shipping by “at least” 50% on 2008 levels by 2050, ending years of slow progress.

Despite opposition from nations including Brazil, Saudi Arabia and the US, the states came to a final agreement on Friday, signalling to industry that a switch away from fossil fuels is fast approaching.

Ultimately the goal is for shipping’s greenhouse gas emission to be reduced to zero by the middle of the century, with most newly built ships running without fossil fuels by the 2030s.

Kitack Lim, Secretary-General of the International Maritime Organisation (IMO), said the adoption of the initial strategy “would allow future IMO work on climate change to be rooted in a solid basis”.

The compromise plan to halve shipping emissions by 2050 leaves the door open to deeper cuts in the future, placing a strong emphasis on scaling up action to 100% by mid-century.

“Meeting this target means that in the 2030s most newly built ocean-going vessels will run on zero carbon renewable fuels. Ships, which transport over 80% of global trade, will become free from fossil fuels by then,” the European Climate Foundation said in a statement.

European Union countries, along with the Marshall Islands, the world’s second-biggest ship registry, had supported a goal of cutting emissions by 70 to 100% by 2050, compared with 2008 levels.

But opposition from some countries – including the United States, Saudi Arabia, Brazil and Panama – limited what could be achieved at the IMO session last week in London.

In Brussels, the European Commission hailed the deal as “a significant step forward” in the global effort to tackle climate change.

“The shipping sector must contribute its fair share to the goals of the Paris Agreement,” said EU Transport Commissioner Violeta Bulc and her colleague in charge of Energy and Climate Action, Miguel Arias Cañete.

While the EU had sought a higher level of ambition, the Commission said the deal was “a good starting point that will allow for further review and improvements over time”.

Shipping currently represents 2-3% of global CO2 emissions and could reach 10% by 2050 if no action is taken, the Commission reminded.

Dr Tristan Smith, an energy and shipping reader at the UCL Energy Institute, said that the 2050 target is likely to be tightened even further in the future.

“Even with the lowest level of ambition, the shipping industry will require rapid technological changes to produce zero-emission ships, moving from fossil fuels, to a combination of electricity (batteries), renewable fuels derived from hydrogen, and potentially bioenergy,” he said.

While he admitted that such changes are “massive” for a global industry with over 50,000 ships trading internationally, Smith said these reductions can be achieved “with the correct level of investment and better regulation”.

“What happens next is crucial,” said John Maggs, president of the Clean Shipping Coalition and senior policy advisor at Seas At Risk, an umbrella organisation of environmental NGOs.

“The IMO must move swiftly to introduce measures that will cut emissions deeply and quickly in the short-term. Without these the goals of the Paris agreement will remain out of reach,” he warned.

According to the text produced by the IMO working group submitted to member states, the initial strategy would not be legally binding for member states.

A final IMO plan is not expected until 2023.

Source: Edie.net / Independent 

One Manato

ONE’s very first container ship, ONE Manato has launched in Japan

The first magenta containership of the Japanese merged containership business, Ocean Network Express (ONE), has been launched at Imabari Shipbuilding in Japan.

The 14,000 TEU ship is named ONE Manato and will now undergo final touches before it gets delivered in December 2018, data from VesselsValue shows.

It is the first tailor-made boxship for the company, featuring the magenta livery and ONE logo on its hull, as the current fleet is comprised of a combination of container vessels that have been serving the Japanese trio respectively.

ONE, a joint venture between Japanese carriers K Line, MOL and NYK, worth USD 3 billion, launched its container shipping business on April 1.

The JV has been described as the world’s sixth-largest container shipping line with 230 vessels in its fleet totalling 1.44 million TEUs.

The network includes a total of 85 services, calling at over 200 ports in 100 countries.

Source: World Maritime News

emissions

Can shipping slash emissions?

Next week, countries are supposed to finalise a deal on limiting greenhouse gas (GHG) emissions from international shipping.

The International Maritime Organisation (IMO) environment meeting in London is expected to set a concrete target for shipping emissions in the coming decades. After the Paris Agreement and a deal on emissions from International Aviation, shipping is the last sector to contribute to global climate action.

A climate shipping deal has been long in the making. The IMO first adopted a resolution on GHG emissions in 1997.  However talks have stalled. There are several issues to overcome. There is concern that the impacts of any deal will fall disproportionately on flag states with many ships registered. Just six flag states – Panama, China, Liberia, the Marshall Islands, Singapore and Malta – account for over half of global shipping CO2 emissions.

However, there is concern that there is not yet enough data on ship emissions to consider setting a global target, or that shipping does not have the technical means to decarbonise.

the IMO adopted two technical measures on energy efficiency in 2011 and will require ships to report on their fuel consumption from 2019, no overall cap or reduction on shipping emissions has been set.

EU member states, including the UK, have supported a “70-100%” reduction on 2008 emissions by 2050, and a 90% reductions in the carbon intensity of shipping.

Japan has proposed that emissions be cut to 50% below 2008 levels by 2060, along with a 40% improvement in ships’ fuel efficiency by 2030. Japan also includes the idea of “amendments” to the goal, pending an IMO review of its achievability at a later date.

The International Chamber of Shipping (ICS) and other trade groups have proposed simply capping shipping emissions at 2008 levels, along with a 50% efficiency improvement by 2050. A group of low-ambition countries, including Argentina, Brazil, China and Turkey, argue against any absolute emissions cap, saying it could result in carbon leakage to other transport modes such as rail and air.

The shipping industry emitted 932 million tonnes of CO2 in 2015, according to a recent report from the International Council on Clean Transportation (ICCT). This corresponded to around 2.6% of global energy-related CO2 emissions, up from around 2.2% in 2012.

The IMO’s most recent study on international shipping emissions estimated they could grow between 50% and 250% by 2050, under current measures. As other sectors are set to decarbonise, this means shipping could grow to represent an ever larger portion of global emissions if not cap is set.

According to Green Peace, Ships carry over 80% of world trade, using vessels that operate on marine fuels which are cheaper but dirtier than road transport diesel fuels.

If the shipping sector were a country, it would rank sixth in the list of carbon emitters, just above Germany. The sector’s emissions have been growing three times faster than global emissions and if left unchecked emissions could grow by 50-250% by 2050.

Source: Carbon Brief / Green Peace