In its latest weekly report, shipbroker Gibson said that "much attention has been given in recent months to continued activity in newbuild VLCC tonnage. We, at Gibson's, are not an exception to that, warning repeatedly about the risk of over-ordering if investment in VLCCs continues at such a relentless pace. However, what has gone largely unreported is the fact that the pattern of ordering activity has been completely different in other tanker segments, starting from Suezmaxes down to MRs".

According to Gibson, “most notably, investment in new tonnage has been minimal in the LR1/Panamax size group. Just 4 tankers have been ordered so far in 2018, while ordering was also highly limited over the previous two years. Without doubt, a lack of investment interest has been driven by poor performance. In recent years, LR1s have also faced an additional challenge in terms of the increased competition from both smaller and larger product carriers, frequently reporting lower earnings compared to other sizes. Not surprisingly, owners have showed preference for smaller MRs or bigger LR2s when ordering a new tanker. With the exception of Handy tankers, as of now LR1/Panamaxes have the smallest orderbook, at 7% relative to its existing fleet”.

The shipbroker added that “the orderbook for Suezmaxes is also becoming notably smaller. Only 2 firm tanker orders (plus 4 shuttle tankers) have been placed this year to date, while investment in new tonnage was also somewhat restricted in 2016 and 2017. As a result, the Suezmax orderbook has now fallen below 9% relative to its existing size, nearly three times smaller from its position two years ago. The MR orderbook (40,000 to 55,000 dwt) stands close to 10%. Investment in new tonnage so far this year has been rather modest, with just 26 confirmed orders; yet, last year over 70 new tanker orders were placed. It is also worth pointing out that the orderbook for Handy tankers (25,000 to 40,000 dwt) is almost non-existent, with just 3 tankers yet to be delivered. However, this is largely a reflection of owners’ preference for the larger MR size when ordering new tonnage”, said the Gibson.

Gibson concluded that “finally, LR2/Aframaxes have the second largest orderbook of all size groups, largely as a result of robust investment in 2017. Yet, investment has slowed once again this year, with 12 confirmed orders for the year to date. As such, the orderbook remains notably below that of VLCCs. Just under 12% of the LR2/Aframax fleet is on order versus 16% in the VLCC segment. The above developments indicate that the growth in fleet size for most size groups could slow down notably next year, particularly if the demolition market remains active. Scheduled deliveries for Suezmaxes, LR2/Aframaxes and LR1/Panamaxes are expected to fall in 2019 to their lowest level since 2015. The number of scheduled deliveries in the MR segment in 2019 is on par with levels this year, yet still notably below the number of new deliveries seen between 2014 and 2016. This paints a much healthier picture in terms of fleet growth going forward. However, in order to see a much-needed rebound in tanker earnings, the current trend of robust ordering in the VLCC segment should certainly not be repeated in other tanker classes.”

Meanwhile, in the Middle East market this week, Gibson said that “the week ended with broadly no change for VLCCs week on week with an initial slight push negated by a slower second half to leave rates at around ws 49 to the Far East for modern units and to ws 40 for older vessels, with rates to the West again at no better than ws 20 via Cape. Unless Charterers over-concentrate their activities over the last phase of the June programme, it is likely that the marketplace will again remain rangebound, and still very uninspiring when converted into TCE returns. The week started with Suezmaxes in high spirits as vessels continued to look into the Med for employment, however few were able to make sense of the longer ballast as Med/East rates flattened out and only modest local demand led AG/West rates to soften from ws 30 to mid ws 20’s while East rates remained in the ws 70 – 72.5 range. A busier final decade in Basrah provides some hope for Owners but tonnage supply should be sufficient to suppress rates from moving far from these levels. Aframaxes eased off from previous not-so-highs as enquiry moderated locally, and further afield. Rates chipped down to 80,000 by ws 95 to Singapore and may discount further into next week”, the shipbroker concluded.

June 4, 2018 by Hellenic Shipping News

The approval follows careful consideration of public representation, stakeholder feedback and state agency expert advice.

The project, which includes dredging of some 1.55 million m3 of material along seven kilometres of the channel, would allow access for larger vessels at the Port of Adelaide, providing South Australian traders the cost benefits of using these vessels on the Australian trades.

Additionally, the widening operation, scheduled to start in autumn 2018, would increases the attractiveness and competitiveness of the Port of Adelaide to shipping lines, as well as increases competitiveness of the container shipping market.

"Without widening the channel to accommodate these new larger vessels, containerised trade and cruise shipping will omit Adelaide from their shipping calls," Vincent Tremaine, CEO of Flinders Port Holdings, said.

In 2014, Adelaide saw 37 ships exceed the design width of the channel. In 2017, the number jumped to 312 and the ships continue to increase in size, demonstrating the need to be able to accommodate the rapidly increasing trend of Post Panamax-sized vessels.

June 5, 2018 by World Maritime News

Rayan Qutub, CEO of King Abdullah Port, confirmed that the substantial increase would play an important role in promoting King Abdullah Port as a logistics hub strategically located on the Red Sea.

King Abdullah Port is working towards the logistics goals of Vision 2030, Saudi Arabia's Vision for its future development, which includes linking the continents of Asia, Africa and Europe by offering 'state-of-the-art' services and infrastructure to service international shipping lines and facilitate transshipment services as well as imports and exports.

King Abdullah Port landed the eighth spot among the world's fastest-growing ports for 2017, according to shipping data analyst Alphaliner.

The new ranking comes after King Abdullah Port had previously announced a 21% increase in its annual throughput in 2017, making it the second largest port in the Kingdom in terms of container handling.

King Abdullah Port moved up to 87th place among the world’s 100 biggest container ports for 2017, after ranking 98th in 2016.

The port features the world’s deepest 18-meter water berths and highly technical processing facilities.

Its container terminals also feature the largest cranes in the world, with a span of 25 containers and a capacity of 65 tons, enabling the port to serve the largest containerships in operation.

King Abdullah Port is the first privately owned, developed and operated port in the Kingdom of Saudi Arabia.

The container port is one of the world’s top 100 ports after less than four years of operation.

Eight of the largest shipping lines operate at the port. 

June 5, 2018 by Port Technology

The agreement ensures that the units, managed by Wilhelmsen Ship Management, are fully MARPOL compliant and can fulfill the International Maritime Organization's (IMO) new, stricter sulphur limits, coming into force on January 1, 2020.

All three vessels have a 25 MW Wärtsilä Hybrid Scrubber System, which has the flexibility to operate in both open and closed loop, using seawater to remove SOx from the exhaust gas. In closed loop mode additional reagent is used in combination with sea water.

The services covered under this agreement, signed in December 2017, include annual audits and safety tests to ensure ongoing MARPOL compliance, calibration of the Continuous Emission Monitoring System (CEMS) and water monitoring system as well as operational training courses for the vessels' crew.

June 5, 2018 by World Maritime News

To date, Maersk, MSC, and CMA CGM have said they will be introducing the surcharges due to increasing fuel costs. Together, they make up more than 45 percent of the global container capacity. Maersk claims the 20 percent increase in bunker prices in Europe since the start of the year has made it impossible for them to cover their costs through standard bunker adjustment factors.

According to iContainers, the trickle-down cost, while frustrating for shippers, is a fair move by the shipping lines. "The emergency bunker surcharge is a result of market movements. At the end of the day, it's fair for carriers to pass this additional cost on to their clients, since it's a cost that they do not control and can change drastically depending on factors that they have absolutely no influence over," says Klaus Lysdal, vice president of operations at iContainers.

Naturally, the move has prompted backlash from shippers, some of whom claim liners should be taking more responsibility for the increase in cost. There may be others, however, who would much rather face the anticipated price hike than risk other adjustments, says iContainers.

"The exasperation felt by shippers is completely understandable and natural. But despite the backlash, I reckon some shippers would prefer to pay a little more overall and have fewer surprises come into their supply chains such as changes to rates and services," says Lysdal.

The carriers have already begun implementing the surcharge this week on several trade lanes, while FMC-controlled trade lanes get a 30-day cushion and will come into effect on July 1. Lysdal says this method of implementation and its standalone nature are stark improvements to the kind of transparency the industry was experiencing before.

"To a certain extent, the emergency bunker surcharge now stands out as an independent surcharge as more and more carriers improve their rates transparency. Several carriers have already cut back greatly on the different types of charges they work with. In fact, just a few years ago, several carriers admitted having so many line charges that it was getting hard even for them to keep up," said Lysdal.

"As it stands, some operate with a basic fuel cost that's included into the total freight charge. But with such a policy, carriers take a calculated risk with gains and losses dependent on actual fuel prices and the cost they decide to build into their rates."

The surcharge may be seen as a side effect of some carriers' efforts to inject more pricing transparency, but iContainers says a better and more sustainable solution will be needed in the long run.

"There is room for improvement in the way it's communicated to the clients. A more transparent way of managing pricing with the clients may be a good workaround to dim the opacity," says Lysdal. "The cost is there, and they have to make a call to recover what they would otherwise lose from it. But hopefully the liners can create a mechanism that's just to all parties sooner rather than later."

June 5, 2018 by Maritime-Executive

The membership was granted to the USPA after an assembly gathering on June 3, 2018 — coinciding with the ESPO's annual conference in Rotterdam.

ESPO Chairman, Eamonn O'Reilly, said: "We are very pleased to welcome USPA as an observer member in ESPO.

"The Black Sea is a very important part of Europe's maritime network with ESPO member ports in Romania and Bulgaria.

"The Ukraine's Association Agreement with the EU, including the Deep and Comprehensive Free Trade Area, make Ukraine's ports an important part of the wider European transport network.

"USPA's membership of ESPO is a logical consequence of the Ukraine's strong relationship with the EU.

"There are already excellent working relationships between ESPO members and Ukrainian ports and I am delighted now to welcome USPA as an observer member in our organization strengthening ESPO's presence in the Black Sea."

The USPA was established in 2013 as a result of the maritime industry reform of Ukraine to manage state property in relation to seaports to attract investments in port infrastructure.

CEO of USPA, Raivis Veckagans, commented: "USPA is honoured to join ESPO.

"Since signing the Association Agreement between EU and Ukraine, we have focused on connectivity of our transport infrastructures.

"Through the observer membership at ESPO, USPA is continuing governmental efforts to establish mutually beneficial cooperation with the European counterparts.

"We are glad to join European port community and are keen to actively participate in the forming the future agenda of the port & maritime industries."

The ESPO works and advises on many issues and areas of interest in the maritime industry and recently congratulated a number of ports, including the Port of Rotterdam, for renewing their environmental management standard (PERS) issued by EcoPorts.

June 5, 2018 by Port Technology

The new equipment intended for a high-precision cold bending of steel sheets and eliminating the risk of deformation was installed in the SК-1 production workshop hall where steel for hull structures is cut and processed.

Investments in the project totaled some RUB 25 million.

Aleksandr Podgorny, Deputy Chief Engineer, AO Okskaya Sudoverf Shipyard comments:

"Our factory deserves to be a leading enterprise of the country in civil shipbuilding segment. Today, thanks to the ongoing comprehensive modernization programme the shipyard has been equipped with a unique production complex capable of providing high-quality and on-time construction of any medium-tonnage vessels. Over the past several years the enterprise has successfully implemented a lot of unique innovative projects, including two boats of Project ST23WI built for FSUE Rosmorport, two tankers of Project RST54 for PJSC STLC, a tanker of Project RST54 ordered for Alpha Leasing, a multi-functional bunker vessel with oil recovery system ECOLOGIST of Project 92800 built for Port of Tuapse, a multipurpose Emergency Response & Rescue towboat PENAY (Project TG-17) and a diving support vessel of catamaran class Igor Ilyin (SDS18) ordered for FBU Morspasluzhba of Rosmorrechflot.

State-of-the-art equipment available at Okskaya Sudoverf Shipyard, including the recently installed hydraulic press brake of KEM Co., Ltd., will enable Navashino shipbuilders execute shipbuilding orders of higher complexity."

About Okskaya Sudoverf
Okskaya Sudoverf JSC, a modern shipbuilding enterprise and a member of VBTH division of UCL Holding, specializes in the construction of oil tankers, medium-tonnage dry cargo vessels of mixed 'river-sea' class, containerships, special crafts and barges. In 2015, Okskaya Sudoverf became the second largest shipyard in Russia in terms of the total newbuilds' tonnage.
UCL Holding (Universal Cargo Logistics Holding) is an international transportation group consolidating a number of Russian shipping, shipbuilding, railway, stevedoring and logistic companies. VBTH also comprises North-Western Shipping Company, Volga Shipping Company, V.F. Tanker, shipbuilding and logistics assets.

Press Release Date 5 June 2018

The emergence of the expansion mindset

Port managing bodies and the cities located near or around them often have long, common histories of joint economic and social development. For a number of ports, this has been extensively documented by researchers in economic and social history. Often, port development, through mostly outward expansion projects has led, especially during the second half of the 20thcentury, to great sacrifices by surrounding local communities under the form of either expropriation of their land (e.g. losing the agricultural use, their heritage), sometimes accompanied by outright relocation. In general, these decisions were taken 'top-down' by committees of civil servants and politicians, mostly at a national state level, under the umbrella of the general economic interest. The periods of quasi unchallenged port growth since the 1950's (except the 1970's oil crisis and a few other minor shocks) indeed installed an 'expansion' mindset or even 'culture', fuelled and justified by the use of the local employment and welfare growth creation argument.

Constructing walls between stakeholders in court

Since the end of the 1980s, and continued until today, other arguments, in particular against port development and operations near or around densely populated areas, have gained significant momentum. Environmental and broader social considerations have rightly gained substantial traction, supported by stringent and general legislation in the domain, to which port management bodies and port business ecosystem stakeholders should adhere. Consequently, many port development projects are or have been delayed or shelved outright on environmental considerations. Mostly, this has happened due to a lack of inclusion of these elements in feasibility studies as well as the inclusion of stakeholders supporting these criteria in planning and decision-making processes. Often, shelving happens after protracted litigation opposing local community interest groups (even individual citizens) against the port managing body or even the city government when it comes to permit delivery or adoption of spatial plans. This further worsened the relationships between stakeholders and created a 'wall' between them. Sometimes, within a culture of 'compensation/mitigation' even literally as physical barriers were created between port and local community residential areas.

Historical legacies are not sufficient, on the contrary...

Interestingly enough, and despite compensation/mitigation schemes as well as many and structural efforts for more inclusive planning by port managing bodies, this remains the case today in exactly those cities, regions, and even nations which have historically built their fortunes based on port and maritime infrastructure. Prolific examples include Panama, where the Panama Canal Authority is faced with fierce local opposition (see panamasos.com) against port development projects along the canal; in Antwerp (Belgium) where the Doel 2020 movement continues to legally challenge the spatial planning; in Vancouver (Canada) where the APE interest group continues to oppose further port expansion. While the port of Antwerp is undoubtedly perceived as a leader in sustainable transformation, and has been internationally recognized through awards for its GRI-certified sustainability report, based on data contributions of more than 40(!) stakeholders, Vancouver as well is considered as a best practice in terms of achieving cohabitation within a dense, populated and multifunctional environment, and likewise sports an impressive and transparent sustainability report. For Panama, the canal is basically the 'raison d'être' of the country... Therefore, many port and city developers remain clueless, unable to deconstruct the wall and build the 'bridge' towards local communities.

Using the same resources?

As a result, we believe there is still substantial scope to better understand and better include local community stakeholders in port management and development decisions. Failure to achieve this will inevitably lead to the shelving of important future transformation projects increasing port and urban sustainability such as: circular economy projects, CCS and CCU projects, clean energy projects,...). The key element towards achieving increased quality of community relations is therefore that cities and ports commonly use exactly the same resources that stakeholders such as interest groups and local community groups use to give weight to their voices: information and communication technology (ICT). ICT, with social media as one of the elements, has allowed local community groups to organize themselves more efficiently, to increase their reach, to increase their political influence and to source inspiration, support and knowledge across the world, at minimal costs. Even governments have joined the bandwagon, and are supporting worldwide networks of research and knowledge exchange between local environmental action groups against all kinds of contested projects worldwide (see for example the Environmental Justice Atlas, supported through the EU Research Programs: https://ejatlas.org/). A growing part of city governments have actively embraced new technology in shaping their policies through the use of platforms such as Citizenlab.co.

Therefore, we believe a more sophisticated and jointly managed approach towards the monitoring of local community (or even more broadly stakeholder) perception might provide additional answers on the question why most port managing bodies continue to experience difficulties to stabilize their social license to operate (or broadly speaking the support from community stakeholders). A number of leading ports, inter alia Antwerp, have taken concrete but limited steps and now yearly monitors and publishes the evolution of stakeholder perceptions in its biannual and public Sustainability Report, based on a survey of about 1.000 people.

From the Court to the Cloud

However, we believe more can and should be done, including the development of tools allowing more permanent monitoring and dialogue with stakeholders, based on jointly defined and stakeholder-approved performance indicators and underlying processes. Just like 'no man is an island', 'no local community interest group is an island' (see the example of the Environmental Justice Atlas); the logical conclusion is therefore that 'no port city is an island'. The further consequence inevitably, to ensure further harmonized port-city development, should be increased collaboration on a global level to develop the cost-efficient cloud technology supported tools and the information and knowledge exchange environment to better understand, small and large ports and cities alike, what matters to whom in the complex 'port-city-community-citizen' relationship. We strongly believe that only by moving to the Cloud, one can avoid the Courts!

June 5, 2018 by Port Economics

The regulation requires that all ships trading outside of the sulphur Emission Control Areas (ECAs) start using fuel with a sulphur content of up to 0.5 pct, a considerable reduction from the currently permitted maximum of 3.5 pct, as of January 1, 2020.

Ships using exhaust gas cleaning technology will be able to continue to use high sulphur fuel oil (HSFO) as a marine fuel. However, the shipping community has raised numerous concerns regarding the viability of scrubbers, especially when speaking about open-loop type of scrubbers.

The open-loop scrubber system removes SOx from the exhaust by utilizing seawater which is later discharged into the sea.

Initiatives have been made to ban the discharge of the washwater from scrubbers into certain regions as the contents of the released water include heavy metals and poly-aromatic hydrocarbons, posing a risk to marine life.

"The main reason why shipping companies opt for scrubbers is that they think that a potential ban on the discharge of the washwater is likely to be delayed," Kim said.

Taking into account the IMO procedures, and the duration of the regulative process, it will take some time to designate these areas.

Despite the fact that the IMO insists that there would be no delay in the implementation of the sulphur cap, the shipowners are still taking the "wait and see approach", Kim continued.

Aside to scrubbers, shipowners have a number of options to choose from, when it comes to picking an alternative, to become compliant with the new rules.

Speaking of the sentiment among the shipping companies in South Korea, Kim informed that Korean owners still feel that it is too early to adopt LNG as marine fuel.

Namely, retrofitting existing ships to LNG is a costly and complex undertaking that takes a considerable time to complete. This in particular relates to small and medium-sized companies for which converting ships to LNG is pretty far away, he explained.

"Some shipowners in Korea are considering the switch to LNG, but there are several risks to consider and the price is too high," he said, adding that LNG as marine fuel is not a long-term solution either.

Another option for shipowners is low sulphur fuel, but the shipping community is worried about the lack of availability of the said fuel.

Regarding the availability issues, Kim said that it would probably take up to two years for those to be resolved, adding that by 2022 there should be enough supply worldwide.

Korean Register is providing technical support to different shipping companies in their decision making process and preparing for the implementation of the regulation.

Speaking from personal experience, Kim informed that when providing guidance to ship owners there is no silver bullet.

"We provide shipowners with different options and the final solution is decided by the company and tailor-made to their specific needs," he concluded.

June 5, 2018 by World Maritime News

The shipping-container sized prototype of Natick was successfully tested on the seafloor on Scotland's coast near the Orkney Islands for 105 days.

The French-based Naval Group, a leading expert in engineering and manufacturing submersible vessels and marine energy technology, partnered on the project to provide a watertight container to secure Microsoft's datacentre.

According to Microsoft, more than half the world’s population lives within 120 miles of the coast — meaning a datacentre deployed in the water would be closer and more responsive for deploying internet and cloud-based systems for residents of coastal cities.

Along with providing web-surfing and video streaming, the datacentres could be leveraged to launch AI services.

Corporate vice president of Microsoft AI and Research, Peter Lee, said: “For true delivery of AI, we are really cloud dependent today.

“If we can be within one internet hop of everyone, then it not only benefits our products, but also the products our customers serve.”

Project Natick’s 40-foot long datacenter is loaded with 12 server racks, containing a total of 864 servers, and associated cooling system infrastructure.

It was constructed in France, where it was loaded onto a truck and shipped to Scotland for testing.

At the test site, a remotely operated vehicle retrieved a cable containing the fiber optic and power wiring from the seafloor and brought it to the surface where it was checked and attached to the datacenter, and the datacenter powered on.

The prototype was then lowered foot-by-foot 117 feet to the rock slab seafloor — which was accomplished using 10 winches, a crane, and a gantry barge.

Datacentres are the integral puzzle piece for the world-wide internet — the physical element of “the cloud” featuring large numbers of servers to process and store data.

Demand for datacenters across the world is growing exponentially, with cloud-based technologies becoming more common both for consumer consumption and industrial operations.

Project Manager for the Natick project, Ben Cutler, commented: “When you are in this kind of exponential growth curve, it tells you that most of the datacenters that we’ll ever build we haven’t built yet.”

June 7, 2018 by Port Technology

The industry leading mobile satellite communications company and the Greek space agency will look at the role of satellite deployment within the Internet of Things (IoT), and the potential for strategic research studies on future maritime software technologies.

President of Inmarsat Maritime, Ronald Spithout, said: "This agreement underlines an already strong and collaborative partnership between Inmarsat and the Hellenic Space Agency.

"We look forward to this further developing in the years to come and seeing the benefits of projects which will help shape our industry."

Chairman of the Hellenic Space Agency, Christodoulos Protopapas, commented: “Inmarsat is one of the most respected global space businesses and it is hugely exciting that this memorandum will pave the way for greater cooperation with us on a number of levels.

“Whether it is an exchange of skills, data or people, we will work on initiatives which will increase knowledge and understanding of the impact of satellite technology.”

The agreement was signed by the two companies at the international shipping event Posidonia 2018.

June 8, 2018 by Port Technology

The upcoming sulphur cap in 2020 and the initiative to halve shipping industry's carbon footprint by 2050 have been in the spotlight together with the immediate implications of the ballast water management convention.

Despite being supportive of the overall aim behind the decarbonization drive, the "tsunami of regulations" has not been very welcome by the industry due to the lack of pragmatism in their application and the availability issues with respect to effective infrastructural solutions to enable the switch to a cleaner future.

In particular, John Platsidakis, Chairman of Intercargo and managing director of Anangel Maritime Services, believes that the overall burden for reducing emissions from shipping is being unfairly put on ships and shipowners.

Speaking during the 6th Analyst and Investor Day within Capital Link's Shipping Forum, Platsidakis stressed that such an approach "will take us nowhere", adding that providers of assets, i.e., shipyards and engine manufacturers should be pushed to provide better equipment to owners.

"As a result, we have to stand up and raise our voice about the real issue here. Therefore, we are asking the providers of assets to come up with the adequate solutions and we will be the first ones to adopt it," he emphasized.

Furthermore, the very fact that refiners have not committed to make the sufficient amounts of alternative fuel available by 2020 poses another uncertainty for shipowners.

In addition, he pointed out that it was "unfair" and "highly regrettable" that at the end of the day the consumers would be paying the price for the implementation of the new regulations.

George Prokopiu, Chairman of Dynagas LNG Partners, agreed, urging that the new regulative framework should be a task for manufacturers and shipyard, not owners.

Prokopiu insisted that shipping companies have very little voice in the overall decision making process about the new rules and that they were standing alone in the implementation process.

The message was echoed by Theodore Veniamis, President of the Union of Greek Shipowners, during the opening ceremony of the event saying that "shipping is often held disproportionately responsible for meeting environmental standards compared to other industries."

"However, as shipowners, we have no say in the manufacturing of the ships' engines, nor are we responsible for the quality of the fuels that we have to use. It is obvious that, while the links in the chain of responsibility are many, it has so far proved to be more expedient, at a political level, to solely focus on shipowners, a choice that is misguided and practically ineffective in the end," he pointed out.

There is no silver bullet and the way forward for the industry to become complaint with the 2020 sulphur cap is attainable through three solutions: scrubbers, slow steaming and low sulphur fuel, Prokopiu said.

Finally, Platsidakis expressed concern over "what comes next in terms of regulations", emphasizing that the industry is not afraid of new rules as long as they are pragmatic.

However, he stressed that a huge issue in the introduction of new regulations was the lack of proper analysis and understanding of the problem at hand.

"Regulators, with all the noble intentions in the world, often don't know what they are talking about. Secondly, a lot of the said issues are politically motivated and promises politically motivated were not realistic," he said.

Specifically, referring to the promise to halve shipping's emissions by 2050 by upgrading propellers and ship designs, Platsidakis said that this was not feasible.

As explained, the only way for these reduction targets to be met is to introduce a carbon free fuel.

"With the existing types of fuel, we will never achieve the promised reductions," he went on to say.

June 10, 2018 by World Maritime News 

With the change in pre-arrival clearance protocols, containers will no longer need to be trans-loaded onto new trucks when crossing the Jordanian/Iraqi border.

ACT Managing Director, Steven Yoogalingam, commented: "The Aqaba Container Terminal has been working hard over the years to develop a competitive gateway to Iraq.

"This will enhance the already strong Iraqi port system and gives the business communities of both countries a fantastic transportation system to better support economic development in the region."

This development comes as the volume of Iraqi imports has seen rapid growth, rising 86% last year alone to reach a total value of $36.5 billion.

The ACT is located 550km from the Iraqi border town of Trilbil, approximately 36 hours via road, and 48 hours via road from Baghdad.

The terminal has also recently become connected with the Asian market with the new AR1 direct service, jointly operated by Wan Hai and shipping group THE Alliance — consisting of Hapag-Lloyd, Yang Ming and ONE.

YML Agent, Mohannad Al Bataineh, said: “We chose Aqaba as the latest addition to our route due to the high potential of the terminal, and its strategic location within the region.

“We are impressed with the advanced technologies and handling procedures available at the Aqaba Container Terminal.

“This new destination will undoubtedly contribute to the expansion of our routes and operations and we are confident that Aqaba will be another success for our services worldwide.”

The ACT has been increasing its vessel capacity over recent years — with its maximum capacity being 5,500 TEU in 2014 to more than 14,500 TEU today.

June 11, 2018 by Port Technology

Together with its land-route counterpart the Silk Road Economic Belt, the Maritime Silk Road forms part of China's Belt and Road Initiative (B&RI), formerly referred to as One Belt One Road. This grand project has huge economic and strategic implications for the numerous countries involved. Just over a year ago interest was amplified by a conference of nations and organisations, hosted in Beijing by the Chinese government to explain and discuss the B&RI and encourage involvement. Since then there have been many news items about various aspects.

Assisting evaluation of the continuing process, two new analyses were published recently. These look specifically at the Maritime Silk Road part of the B&RI and cast a fresh light on how it is evolving, its effects and implications regionally and globally:

China's Maritime Silk Road, Strategic and Economic Implications for the Indo-Pacific Region
Center for Strategic & International Studies (CSIS), Washington DC, March 2018, Nicholas Szechenyi (editor), Michael J Green, et al

Blue China: Navigating the Maritime Silk Road to Europe
European Council on Foreign Relations (ECFR), Policy Brief, London, April 2018,
Mathieu Duchatel and Alexandre Sheldon Duplaix

These analyses are offered by reputable think-tanks, featuring scholarly research. Although influenced by and reflecting to varying extents, respectively American and European viewpoints, valuable insights coupled with thought-provoking ideas and assessments are contained.

The principal rationale for the Belt & Road Initiative, as promoted by the Chinese government, is to improve connectivity between China and a broad band of Eurasian territory, mainly by upgrading and expanding transport and other infrastructure. Along the Maritime Silk Road, a route or routes extending from China through Southeast Asia, Oceania, the Indian Ocean, Middle East and East Africa into the Mediterranean Sea, enhancing port facilities is a particular focus. Previous studies have highlighted the need for greater investment in such infrastructure in many developing and emerging economies in this area.

Contrasting perceptions

Plans to strengthen connectivity are not the only aspect of the Maritime Silk Road attracting much attention. Political and strategic issues and implications are considerations for many countries involved or affected.

The CSIS analysis underlines the "growing questions about the economic viability and the geopolitical intentions behind China's proposals" and asks whether port and other projects in the Indo-Pacific region are economic or military in nature. It concludes that MSR projects are neither purely military nor purely commercial and that China's approach is "probably evolving". A broadly international viewpoint is adopted in this evaluation; an overtly American perspective is not prominent in the report.

By contrast the ECFR study, as implied by its title, places a European perspective centrally. The tone is set at the outset when it is declared in the summary that "China's Maritime Silk Road is about power and influence..." The study's introduction section contends that "economics may be its main driver, but the Maritime Silk Road is also about naval power and international influence and forms part of (president) Xi Jinping's broader national strategy". This theme is pervasive throughout the report.

Perceptions of a European reluctance to endorse China's project are emphasised in the ECFR study. According to the authors, the "romance of the Silk Road has won over few players in Western Europe". Scepticism in Europe is explained as reflecting three influences: (a) an unconvincing argument by China about shared prosperity, (b) a prevailing sense that Europe will derive limited advantages from the MSR, and (c) divided European opinion about the entire Belt & Road Initiative. These influences have led to "passive scepticism". The report does question whether this attitude is justifiable, but contends that the B&RI "is designed to help China tilt the global balance of power in its favour".

Prominent infrastructure projects

Included in the CSIS report are detailed evaluations of three major port infrastructure projects sponsored by China along the Maritime Silk Road – Kyaukpyu (Myanmar), Hambantota (Sri Lanka) and Gwadar (Pakistan). Another major project on the same route – Chabahar (Iran), sponsored by India – is also examined because it is in close proximity to Gwadar and is often viewed as a manifestation of strategic competition between India and China.

Below are brief descriptions of the projects, derived from the CSIS study and from other sources.

At Kyaukpyu, a coastal town in Myanmar's Rakhine State, Chinese companies have agreed to develop a deep-sea port and adjacent industrial area. Already this location is the terminus for twin pipelines to Kunming in China's Yunnan Province. The gas pipeline, completed five years ago, carries gas from Myanmar's offshore Shwe field, while the parallel oil pipeline which became operational last year carries imported crude oil to a new refinery in Kunming. The project enables China to reduce dependence on the sea route via the Straits of Malacca, seen as a chokepoint vulnerable to disruption. When new road and rail connections are finished, this route may assist development of China's inland western provinces.

The port of Hambantota on Sri Lanka's southern coast was a small fishing village until a few years ago when the previous national government, with Chinese financing, began transforming it into a deep-sea port. It is situated close to the long-established major port of Colombo, which has not reached capacity and has plans for major expansion, complicating Hambantota's progress from an under-utilised facility at present. As a consequence of the need to reduce the country's high indebtedness, in July 2017 a controlling equity share plus a 99-year operating lease was acquired by a Chinese port operator, China Merchants Port Holdings.

In Pakistan the port of Gwadar on the Makran coast west of Karachi has been developed in recent years as a gateway to the China-Pakistan Economic Corridor (CPEC). Projects within CPEC will be facilitated by road links through Pakistan to Kashgar in China's Xinjiang Province, and there are plans for rail and pipeline links. Gwadar is located near the junction of the Arabian Sea and Gulf of Oman close to international shipping routes. Its transformation from small fishing villages into a major port being extended in phases began over a decade ago. In 2013 it became effectively a Chinese port when a new operator, China Overseas Port Holdings, obtained the management contract, and a 40-year lease has been agreed.

A port which is relevant to, but not part of the MSR project is Chabahar in Iran. The relevance stems from its geographical position along the same stretch of coast and in close proximity to Gwadar, less than two hundred kilometres distant. Of particular significance is that India is assisting Iran to develop Chabahar, reflecting the Indian Government's infrastructure investment strategy and intention of gaining access to Central Asia. The upgraded port is expected to be operational by the end of 2018, and India has committed to building a free trade and industrial zone and new rail connections.

Economic arguments

The CSIS study attempts to rigorously gauge the economic significance of the Maritime Silk Road. Although the Chinese government contends that the purpose of the Belt & Road Initiative is to enhance regional and global integration and boost economic well-being and macro-economic growth in connected countries, motivations for port investments are often challenged

Three criteria for assessing the economic viability of port infrastructure projects are adopted in the CSIS analysis: proximity to shipping lanes; proximity to existing ports; and hinterland connectivity or connections to larger developments inland. The conclusion is that the three MSR projects reviewed are not entirely aligned with economic objectives, especially connectivity. According to the authors of this chapter "Hambantota, Gwadar, and Kyaukpyu are all advertised as engines of development for historically underdeveloped areas. As rural areas, they are less connected to broader transportation networks."

Other aspects of Chinese port investment along the MSR routes are discussed in the ECFR analysis. The authors of this paper suggest that "operating port terminals is a source of predictable and stable return on investment for Chinese conglomerates..." This characteristic of profitability provides an incentive for investing directly in port development projects, and also into port and terminal operations and management. Port and terminal management is a prominent feature in Hambantota and Colombo, Gwadar, Djibouti and Piraeus.

During 2016 and 2017 there was a surge in Chinese companies acquiring equity stakes in port management companies around the world. Some were within the MSR as usually defined, while others were elsewhere. Among notable investments of this type were Rotterdam container terminal, container terminals in Valencia and Bilbao, Vado Ligure and Khalifa Port.

Implied consequences

Strategic objectives are sometimes deduced, anticipating use of ports for naval activities related to security operations. There have been many suggestions that all three ports within the MSR reviewed above could become bases for the Chinese navy or, at least, could be used for this purpose in times of conflict.

Apart from brief visits by individual Chinese navy warships, a common practice in numerous ports around the world, evidence validating the theory has been limited. However, the CSIS study contends that "there is no question that the infrastructure is being created with dual-use purposes in mind". The ECFR study concurs, suggesting that "it is...a matter of the right conditions being met rather than of whether China will proceed to build new 'overseas logistical facilities' for its navy".

A concern for the international community and for the host country is the leverage potentially gained by China when it finances B&RI port and other infrastructure. Heavy indebtedness may enable more pressure to be exerted on the government of a B&RI partner, possibly resulting in economic dependency which could be exploited for strategic purposes. This perception has been seen to cause political unrest or, at least, opposition within host countries.

In one prominent case where debt became overwhelming, China acquired the assets. As already mentioned, Sri Lanka's government has allowed ownership of Hambantota to be transferred to a Chinese state-owned company, which has acquired a controlling equity stake in the port and an extended operating lease.

Focusing on trade between China and the European Union, the ECFR study suggests that it is beneficial for Europe to create conditions for continuous growth in trade movements. However, the authors argue that Chinese investment in port infrastructure involves risks for recipient countries. A possible positive aspect is reducing the cost of trade for all parties. But a potential negative aspect in the long term may be Chinese companies' ability to set prices and control the terms of economic exchange with trade partners (selecting business partners).

A shipowning dimension

One activity closely linked to the Maritime Silk Road is not usually discussed as part of the scheme, because it is not promoted as formally related. The China-owned fleet of merchant ships of all types – especially tankers, bulk carriers and container ships – has grown strongly over the past twelve months, following earlier rapid expansion. Many of these ships are employed on MSR trade routes, although not necessarily exclusively (as geographically flexible patterns are a feature of some vessels' employment), while others are employed on associated routes.

According to data compiled by Clarksons Research, the China-owned merchant ship fleet was comprised of 7,567 ships totalling 159.3 million gross tonnes (a common measure of capacity) at the beginning of June 2018. The total had grown by 13.2m gt or 9 percent since the same point a year earlier. An indication of future fleet growth is provided by the volume of ships for which definite orders have been placed at shipbuilding yards. Currently owners based in China have 22.9m gt on order, equivalent to over 14 percent of the existing fleet, a large proportion of which is scheduled for delivery this year or in 2019.

Other influences in addition to newbuilding deliveries will determine how the future fleet's capacity evolves. Scrapping (recycling), and purchases or sales on the secondhand market will have an impact which is not easily predictable. But the newbuilding orderbook as recorded currently, and known intentions of Chinese owners, indicate sizeable expansion ahead.

An unfolding narrative

What are the tangible signs of Maritime Silk Road progress in the past twelve months or so, and what is likely to happen in the period immediately ahead? This aspect is not a specific focus of the two published studies reviewed here, but some developments are noteworthy.

From the outset, it has been envisaged that the B&RI could have a favourable impact on China's economy as it unfolded. Ample scope for this outcome is widely acknowledged, but predicting the pace at which it evolves is more difficult. In the latest half-yearly economic outlook analysis published at the end of May by the OECD organisation, a review of progress in China suggests that the B&RI "will keep infrastructure and exports strong". However, alluding to the uncertain pace of activity, the authors comment that "a faster-than-expected roll-out of projects...would boost Chinese exports of goods and services, and hence, growth."

Since the MSR, and the Belt & Road Initiative as a whole, is clearly a long-term development project, it is not altogether surprising that progress has been gradual. At several of the ports on the route there have been recent advances in construction work on terminal and berth facilities. Also, on the land side, work on connecting ports with road and rail infrastructure to assist connectivity has gained further momentum.

Despite these positive signs, news reports in recent months frequently highlighted problematical features arising in many MSR port projects and other B&RI involvement. These problems may prove temporary. Some difficulties look set to cause delays, amid possible renegotiation of contracts, mainly reflecting financing difficulties. Political opposition in several host countries also has become more prominent, in part a response to growing awareness of the extent of indebtedness to Chinese banks and the potential repercussions.

The CSIS study, looking at China's Maritime Silk Road as a whole, suggests that "the overall conclusion is mixed". The ECFR analysis concludes that "China's policies on facilitating the growth of its blue economy and its construction of a powerful navy are transforming the global maritime environment..." These observations highlight both the difficulty of evaluating how and at what pace this grand project will proceed, while emphasising the changes taking place which eventually could reshape aspects of the global maritime scene.

June 12, 2018 by Hellenic Shipping News

The contract for construction was signed on 31 October 2017. The first barge was laid down on November 22, 2017.

Non-self-propelled tank barges of Project ROB20 are intended for transportation of petroleum products with a flashpoint of 610C and above. With their double sides and double bottoms the vessels feature an improved level of environmental friendliness. The barges will be operated on the Belaya, Kama and Volga rivers.

Ship's class notation: O 2.0 non-self-propelled liquid bulk carrier. The project designer - Marine Engineering Bureau.

About Okskaya Sudoverf

Okskaya Sudoverf JSC, a modern shipbuilding enterprise and a member of VBTH division of UCL Holding, specializes in the construction of oil tankers, medium-tonnage dry cargo vessels of mixed 'river-sea' class, containerships, special crafts and barges. In 2015, Okskaya Sudoverf became the second largest shipyard in Russia in terms of total newbuilds' tonnage.

UCL Holding (Universal Cargo Logistics Holding) is an international transportation group consolidating a number of Russian shipping, shipbuilding, railway, stevedoring and logistic companies. VBTH also comprises North-Western Shipping Company, Volga Shipping Company, V.F. Tanker, shipbuilding and logistics assets.

Press Releae Date 12 June 2018

Det Østasiatiske Kompagni (EAC), Svenska Ostasiatiska Kompaniet, Gothenburg and Wilh. Wilhelmsen in Oslo set up the Scanservice group to offer a Europe Far East container service with 15-day departures from the base port of Gothenburg. They ordered four equivalent large and very fast container ships Selandia and Jutlandia (EAC), Nihon (SEA) and Toyama (Wilhelmsen). Shortly thereafter the Dutch shipping company Nedlloyd joined with two ships called Nedlloyd Delft and Nedlloyd Dejima, whereupon the group was renamed ScanDutch.

In 1973 the French shipping company Messageries Maritime joined ScanDutch and brought their ship Korrigan into the pool, and in 1977, the Malaysian shipping company Malaysian International Shipping Corporation (MISC) joined.

ScanDutch was run as one shipping company with joint marketing and pricing, and it was managed out of a single office in Copenhagen. This worked well, but the venture was doomed when its joint owners started to realize that they were losing their own commercial identity in a trade of ever-growing importance, says Dynamar analyst, Dirk Visser. Ultimately, ScanDutch was broken-up in 1991.

"It was in particular Dutch carrier Nedlloyd, holding a 33 percent share, for whom the relatively obscurity of its brand in what was its most traditional trade had become unacceptable. Moreover and unlike some of the other ScanDutch members, Nedlloyd wanted to invest in new ships and eventually did so. Maersk Line, into which then P&O Nedlloyd was merged in 2006, still operated them on the Mediterranean-Indian Sub Continent route in 2014."

Now, the majority of the Europe-Far East carriers are operating in alliances. These alliances tend to be vessel sharing groups where operations are in varying degrees aligned, but pricing, steering and tracking of containers, as well as inland haulage is kept strictly separate and performed by the individual lines. The carriers aim to strengthening their position against competitors and ultimately improve, at least stabilize, their bottom line. However, they haven't driven away overcapacity, but realigned it for more powerful competition. Currently alliance participants strive to maintain full independence. This contradicts the other aims, says Visser.

"Whichever type of collaboration, be it slot swapping, vessel sharing, consortium building, alliance forming: more carriers than sailings is good for costs but bad for revenue. It is ultimately to the detriment of the bottom line," says Visser. Instead, setting up a joint commercial unit like ScanDutch for new alliances in the Europe-Far East trade would reduce the number of sales entities and would be a great contribution to taking out volatility from the Europe-Far East liner system.

"The carriers involved would be better advised to stay independent, if they choose, but to merge their Europe-Far East operations following the joint marketing concept of once ScanDutch. Four daily operating Europe-Far East consortia each with a single (costs saving) sales organization is the only recipe to get paid what they need to offer their customers a sustainable quality product.

"As such, joint marketing consortia might be a viable alternative for container shipping company consolidation. Nonetheless, they have done it. May 2015 saw the start of a period of unprecedented consolidation which has seen 10 traditional carrier brands, comprising half on the January 2015 Top 20 Container Liner Operators consigned to history. As a result there now are seven container carriers, all of them active on the East-West trades, operating box fleets of more than one million TEU: between 1.1 million and 4.1 million TEU. The fleet of carrier number eight counts just 680,000 TEU," says Visser.

"Yet, the continuing current cost and revenue pressures the merged guys continue facing may serve as warning for second tier carriers considering consolidation too. Carefully check the ScanDutch joint marketing sample at first to prevent a venture with more unwanted ships and staff."

June 12, 2018 by Maritime-Executive

Abel Matutes was bunkered with LNG in the Turia quay at this Spanish port.

Gas Natural Fenosa and Baleària cooperated on this project which involved the installation of a natural gas generator as well as an LNG tank on the aforementioned vessel with the aim of reducing emissions and improving air quality.

The 190-meter-long ship will operate with the auxiliary natural gas engine, enabling it to reduce emissions in the ports of Valencia and Mallorca.

As explained, this technology on board the ship will result in an annual saving of about 4,000 tons of carbon dioxide (CO2), more than 60 tons of nitrogen oxide (NOx) and 6 tons of sulfur oxide (SOx).

"All of these initiatives, in which Valenciaport participates actively, are aimed at reducing pollutants from port activities, as evidenced by the reduction of particles, sulfur oxides and nitrogen oxides achieved by the replacement of traditional fuels for LNG," Federico Torres, Subdirector General, Port Authority of Valencia, commented.

Earlier this year, Baleària and Gas Natural Fenosa signed the first permanent LNG bunkering contract for ship propulsion in Spain. The supply deal will be exclusive for 10 years and will initially apply to the ports of Barcelona, Valencia and Algeciras.

June 12, 2018 by World Maritime News

The vessel, ONE Stork – sublet-owned by Nippon Yusen Kaisha, has a capacity of 18 rows by 11 tiers in its hold and 20 rows by 9 tiers on its deck in a hull form that allows improved cargo-loading efficiency through minimized engine-room space.

It also applies the duel system in its main engine, which is capable to choose two other output ranges of high and low to allow flexible operation and improved fuel-consumption rate, resulting in a significant reduction of carbon dioxide emissions.

She will phase in THE Alliance's Asia to North America (East Coast) EC4 service with its port rotation Kaohsiung, Hong Kong, Yantian, Cai Mep, Singapore, New York, Norfolk, Savannah, Charleston, New York, and Singapore.

Jeremy Nixon, Chief Executive Officer of ONE, said: “ONE is excited to take delivery of first new-building containership with our new corporate colour, magenta.

“The magenta colour shows our intentional drive to do things differently and explore newness in this market.

“There is no doubt that she will be one of our most important core fleet.”

June 13, 2018 by Port Technology

Rostock (Germany), 14 June 2018 – At TOC Europe, Liebherr Maritime disclosed the expansion of the reachstacker product line by two new devices. A powerful reachstacker with the lifting capacity of 35 tonnes in the second container row and a log handler for timber handling will complete the existing product family.

Exactly three years ago, Liebherr Maritime presented the first prototype of the reachstacker LRS 545 at TOC Europe in Rotterdam. Now two further products have extended the LRS 545 series. The powerful LRS 545 - 35 that lifts 35 tonnes in the second container row and the LRS 545 Log Handler with a remarkable grapple capacity of 8.2 m². Since the first introduction of the LRS 545 series, there have been a lot of changes and innovations within the reachstacker market. Especially in order to meet these growing demands on products it is essential for Liebherr to keep a finger on the pulse of time.

Ever since the market launch in June 2015, all the devices of the LRS 545 series have been among the most innovative ones on the reachstacker market. The decisive factor above all is the unique drive concept of the Liebherr reachstackers, the hydrostatic drive. This concept is a high-end solution developed by Liebherr and has already proven itself in over 70,000 Liebherr wheel loaders. It enables a number of unique advantages over competitive products, e.g. maintenance- and wear-intensive parts such as differential and torque converters can be saved. Furthermore, the hydrostatic drive combined with the extremely economical 230 kW Liebherr diesel engine provides possible fuel savings of up to 30% compared to the market average.

"Since the last three years we collected an enormous amount of valuable feedback from our customers. The operators praise particularly the stepless and gearless driving characteristics of our devices repeatedly. Thanks to the individual wheel drive and the excellent panoramic view from the driver's cab, our reachstackers are well-known for their high mobility and all-round visibility, even on terminals with narrow container rows,” said Eric Colditz, Liebherr Sales Director for reachstacker.

All the mentioned advantages of the predecessor models can be found in the new LRS 545 - 35 and in the new Log Handler as well. Therefore, the proven cab design and the slim wedge shape also offer a particularly safe and pleasant driving experience in the new devices. To extend the safety aspect during operation, Liebherr developed the new Topview Camera System, which is an optional feature available for all device types of the LRS 545 series. The innovative Topview System offers the driver an excellent rear and side view from a bird’s eye perspective, without any blind spots. Due to the logical composition of three camera images, the complete rear area is covered by the system at an angle of 270°.

35 tonnes machine LRS 545 – 35
After detailed market analyses and development phase, now Liebherr Maritime is pleased to announce the desired extension of the load capacity by the LRS 545 – 35. As the name implies, the new reachstacker is capable of lifting containers weighing up to 35 tonnes out of the second row. It was possible to develop a more powerful reachstacker without changing the chassis of the common LRS series.

Efficient LRS 545 Log Handler
Sophisticated design and proven quality standards make the new Liebherr LRS 545 Log Handler a hallmark of reliability. The design of the Log Handler is optimised for quick and easy service. All relevant parts are easily accessible which ensures short idle times. With up to 30 tonnes lifting capacity and a maximum grapple capacity of 8.2 m², the new Log Handler from Liebherr sets standards when it comes to timber handling performance. The telescopic boom allows an unrivalled range of up to 8.5 metres and
stacking height of up to 8.9 metres. Another advantage is the possibility of log handling below ground level.

Image Caption: First impressions of the new Liebherr LRS 545 Log Handler prototype doing its work.

Press Release Date 14 June 2018 

Introduction

For several decades beginning during in the early 1970's, the Government of China reached out to several African nations with the purpose of establishing cordial diplomatic relations and especially so with the post-colonial government of the former Tanganyika, renamed Tanzania. At the time, the landlocked region of Northern Rhodesia had achieved independence from England and was renamed Zambia. China provided assistance and expertise to connect railway lines into the Tan-Zam or Tazara Railway that linked the port city of Dar es Salaam with Zambia, Angola and Congo while also providing access into South Africa.

Several decades later, China again provides railway development assistance to the nations of Kenya, Ethiopia and Djibouti, replacing the old light-duty meter-gauge railway lines with heavy weight international gauge railway lines. The assistance not only provides a market for Chinese built railway technology, it also improves overland transportation connections between major cities across the region. Fast new electric trains now connect the Port of Djibouti to Ethiopia's capital of Addis Ababa. In Kenya, the former 16.5-hour Mombasa - Nairobi overnight passenger train now does the trip in just over four hours, while longer and heavier freight trains also travel that route.

Short-Term Development

China has invested in assisting several African nations to develop new businesses and is extending the Port of Mombasa – Nairobi standard gauge railway line westbound into Uganda. North of both Uganda and Ethiopia, discussions have been underway to convert railway lines in Sudan from the meter-gauge and Cape-gauge (3' 6") to the international gauge that already exists in Egypt. The Egyptian railway extends south to the northern tip of the Aswan Dam while the Sudanese railway extends north to the southern tip of that dam. A common railway gauge could result in a direct Cairo – Khartoum train service.

Long-Term Options

A railway line extends south from Khartoum along the Blue Nile and toward the border with Ethiopia and half-way to Addis Ababa. Connecting a standard gauge railway line between Khartoum and Addis Ababa would also provide a direct railway link between the Mediterranean Sea and Gulf of Aden. Egypt is presently Africa's second largest economy and a direct railway from Alexandria and Cairo to Khartoum and Addis Ababa promises to carry substantial trade. In Southwestern Sudan, a railway line extends west toward the border with Chad while a Northeastern Nigeria railway line extends east toward Chad.

Transportation researchers connected to the Organization of African Unity have discussed the future possibility of a trans-African railway line connecting Gulf of Aden to Gulf of Guinea. Nigeria has converted some railway lines from narrow gauge to international gauge and will continue to do so into the future. Nigeria and Egypt are Africa's largest economies and a direct railway line across Chad would allow trains to carry trade between these two economies, via Khartoum. Higher priority freight from India and China would transfer to a trans-Equatorial African railway at Djibouti, for the overland journey to Nigeria.

South Red Sea Bridge

About 10 years ago, the CEO of the Arabian based Bin Laden Engineering and Construction Company proposed to build a bridge across the south end of the Red Sea, between the southwestern tip of the Arabian Peninsula and the nation of Djibouti. The future prospect of an east-west railway line across Equatorial Africa between Djibouti and Nigeria invited reconsideration of that bridge project and especially in view of the future prospect of rising sea levels. One possible future option would be the combination of a bridge with tunnel sections, dam with hydraulic pumping turbines and maritime navigation locks.

The transportation link would become part of China's Great Silk Road across Asia and into Africa and especially in view that the nations of Oman and Iran actually discussed a bridge transportation link across the Strait of Hormuz. A substantial Muslim population lives across Equatorial Africa and at the time of the annual Haj, a sizeable percentage of that population could seek railway transportation to Djibouti as part of pilgrimage journey to Mecca. Saudi Arabia is presently expanding their standard gauge railway network, and once the problem in Yemen is resolved, could extend a railway line toward Djibouti.

East Africa Deep Water Ports

At 18 meters (59 feet) water depth, Djibouti is East Africa's second deep water container terminal, with the other terminal being located at Port Elizabeth, South Africa. Unlike its Southern counterpart, Port of Djibouti has the prospect of becoming the trading gateway for several African nations that will seek faster transit times for containers moving between Equatorial West Africa and Asian economies. As future sea levels slowly rise, Djibouti may be able to berth larger container ships of up to 28,000-TEUs that sail a draft of 18 meters and in the long-term future, be assigned to the East Africa – Asia service.

There is potential for the Kenyan Port of Mombasa to serve as a back-up port to Djibouti for trade between equatorial Africa and Asia, serving smaller ships if standard gauge railway line from Mombasa extends to Uganda's northwestern region and connects to the southernmost point of Sudan's railway system. Such a link would provide trans-Africa railway access between Kenya and Nigeria as well as between Kenya and Egypt. While mega-size container ships from China and India will call at Port of Djibouti, smaller container ships from smaller Asian economies might call at Port of Mombasa.

Conclusions

While the Organization of African Unity promotes the idea of an equatorial trans-African railway line to promote domestic and international trade, including trade with Asia, China has already taken the first step by providing assistance to develop standard gauge railway lines the extend inland into Africa, from the Indian Ocean.

June 14, 2018 by Maritime-Executive