panorama
The Magazine of the M+R SPEDAG GROUP
New Capacities for Cargo Movement
DECEMBER 2016
INFRASTRUCTURE
CONTENTS
Editorial3
Panama Canal
4
The expansion of the Panama Canal is one of the most
important infrastructure projects in recent decades
Gotthard Base Tunnel
7
Switzerland celebrated the official opening of
the world's longest rail tunnel
Terminal 3
8
Spedag Interfreight is providing the local infractructure for the
expansion project at Dar Es Salaam's Julius Nyerere International Airport
Africa‘s Future on the Right Tracks
10
Rebirth of railways in Africa - the construction
of several new transit corridors is under way
Opening Ceremony in Vietnam
M+R Asia's latest addition celebrated its
12
inauguration with an official ceremony
Super Heavy
M+R India won an important contract for
14
ongoing exports of cement shipments to Sri Lanka
Giants of the Oceans
16
Will there be an end to the ongoing trend
for ever bigger ships in global container traffic?
Corporate Social Responsibility
18
An update on the CVT Project in Myanmar, which
is supported by M+R Spedag Group
PANORAMA - THE MAGAZINE OF THE M+R SPEDAG GROUP
December 2016 issue
Publisher M+R Spedag Group AG, Kriegackerstrasse 91, 4132 Muttenz / Switzerland
Editor Bernadette Jourdan Design + Layout Stephan Schneider Copyright M+R Spedag Global AG
Contact [email protected] Internet www.mrspedag.com
Cover Infrastructure
The main focus in this year’s Panorama is on infrastructure, in view of the 2016 opening of two
once-in-a-century structures: in Panama, the expansion of the canal was celebrated after nine
years of construction, and the most important waterway between east and west became operational with an increased capacity of 50%. And Switzerland is especially proud of building
the longest tunnel in the world with the extension of the north/south railway line under the
Gotthard. The tunnel runs 57.1 kilometres through the Alps, making the crossing of Switzerland
possible with hardly any gradients. The travel time between Basel and Chiasso, the main gateways and border crossings in the north and south of Switzerland, is thus reduced by a full hour
to only three and a half hours. The new tunnel also allows for a higher frequency of trains. Up
to 210 freight trains per day - up from currently 160 - will be using the north-south passageway
through the Gotthard.
There can be no doubt that investing in infrastructure is always the prerequisite for economic
growth. We ourselves have been operative in East Asia since 1985, and in East Africa since 1998.
Precisely here in developing countries, infrastructure expansion is of prime importance. In 1985,
57 million TEU (20' containers) were handled around the globe – a volume that these days is
matched by the annual turnover of China's Shanghai and Ningbo/Zhoushan region alone. This
has only been possible due to the visionary planning of docks plus supporting transport infrastructure and swift, unbureaucratic realization.
The same holds for all the so-called Tiger States as well: today, Singapore is still the second
largest port in the world. And it definitely also applies to the airports in East Asian major cities.
Up to the mid-90s, Asian connoisseurs on their way to Hong Kong attached value to sitting at a
right-hand window in the plane so they could experience at close hand the spectacular landing
at Kai Tak (video clips can be found on You Tube under «Kai Tak Landing»). In 1997 a new airport
was opened on Lantau Island that clearly demonstrated how visionary ideas can create high
values for many generations to come. The situation is not the same in India, where transport
infrastructure always lags behind economic growth. This is surely one of the reasons why India
does not participate in world trade in keeping with the country’s size and population.
And Africa? This is where we can see steady improvement in the infrastructure, especially in
the construction of new roads and rail connections, but also in the areas of energy and telecommunication. Semi-public Chinese companies are building up the infrastructure there in exchange
for raw materials and mining rights. This ensures that foreign money does not just disappear. The
economy gains, jobs are generated and growth is near the double-digit percentage range.
In a word: economic development is only possible on the basis of reliable infrastructure in
energy supply, telecommunication and the transport sector – even if this at times has to be at
the expense of the environment. But that shall be the focus of our next Panorama.
yours
Daniel Richner
PANORAMA
3
2.
PANAMA CANAL
After nine years of construction work, a bottle­
neck for world trade has now been eliminated.
In June 2016, a ceremonial act of state opened
the newly extended canal, linking the Atlantic
and Pacific oceans through Central America.
With a two-year delay, Panama has now com­
pleted a construction of the century that is
unique in its dimensions.
Since the middle of the 1980s it has not been possible for all
container ships to traverse the Panama Canal, as ships with
a capacity of more than 4,400 TEU (Twenty Foot Equivalent
Units, the technical description for a 20’ container), were quite
4
PANORAMA
simply too big. Ships were classified as Panamax and PostPanamax, depending on whether or not their length, width
and draft were permissible dimensions for passage through
the canal.
Since the widening of the canal it can now be traversed
by container ships of the Post-Panamax class, only, however,
up to a capacity of 14,000 TEU. Tankers, for example for liquid
gas, can now choose to take the cost and time-saving route
through the rain forest instead of having to sail round Cape
Horn at the southern point of South America, still dreaded
by seamen. This means that 98% of all ships travelling the
oceans can as of now be channeled through the Panama Canal. Expected is a doubling of the freight throughput from
300 to 600 million tons per year.
So that the canal can continue to play an indispensable
role in the world’s economy, Panama staged a real battle of
materials in the jungle. The new lock installations do not replace the old ones, but supplement them. And so that the
largest ships do not get stuck in the silt, construction workers have deepened the shipping channels in Lake Gatún and
widened them out to up to 366 meters wide in the bends.
.0
This lake forms part of the 80 kilometer-long route for which
a ship needs about 12 hours – so long as one of the notorious
fog banks does not delay the trip.
In their 2006 referendum the people of Panama voted
in favor of expanding the canal, which was first opened in
1918. This was a wise decision, as the construction work that
started in 2007 soon had a positive effect on the country’s
economy. At times, 40,000 people were working directly or
indirectly on the waterway. Last year the Canal Company ACP
took in around 2 billion US dollars in fees, 4% more than the
previous year. And with its 9,000-strong workforce, ACP is the
biggest employer in the country, after public administration.
Responsible for building the expansion is the syndicate
‘Groupe Unis pour le Canal’, managed by the Spanish concern SACYR. Undertakings from Italy, Belgium and Panama
were also involved. The originally budgeted building costs of
US$ 5.3 billion rose finally to 6.9 billion.
There is great hope that the new canal will drive forward
the trade in goods with North and South America. There are
already seaports on the east and the west coasts of the USA
being developed for billions of dollars. And in Latin America,
INFRASTRUCTURE
Cartagena in Colombo, Callao in Peru and San Antonio in
Chile are extending their facilities.
Traversing the canal is not, of course, for free. The scale of
charges is extremely complex. The price is not only based on
the type, size and cargo of a ship. Costs for pilots on board,
tugboats in the canal, or locomotives and mooring in the
lock chambers have to be taken into consideration. For a
freight ship with 10,000 TEU, the sum of about US$ 800,000 is
payable. Despite the much larger lock facilities and the deepened channels, transit has not become more expensive – in
fact, calculated down to a single standard container, it is now
a little cheaper.
Panama’s tariff policy is not, however, based on generosity to the shipping companies, but rather on its fear that large
ships might prefer to take the long way round Cape Horn if
the charges seen to be too high. On the other hand, operating the Panama Canal is extremely expensive and cannot be
compared to other artificial waterways such as the Kiel Canal
or the Suez Canal. In Panama, ships have to be raised in many
stages up and down the lock basins. For all its gigantism,
Panama is looking anxiously towards the north. In autumn
Ceremonial opening: after nine years of construction, the
time had finally arrived! On 26th June 2016, the M/V COSCO
SHIPPING PANAMA, a container ship with a capacity of 9,472
TEU, travelled through the new lock basins of the extended
Panama Canal.
For Panama, the enlargement of the canal – the prime source
of revenue for the country’s economy – was a step of great im­
portance. For a long time, modern, large-size container ships
have not been able to traverse the canal, as its locks, before
the extension, were only big enough for ships with a capacity
of 4,400 TEU. Now, in comparison, ships of 14,000 TEU fit into
the new lock basins. With its extension, the Panama Canal has
regained its importance for international container shipping,
with its growing trend to increasingly larger ships.
5
INFRASTRUCTURE
THE EXPANSION OF THE PANAMA CANAL
In June 2016, after 9 years of construction, the expansion
of the 82 km long Panama Canal was officially inaugura­
ted. The expansion consists of an additional, third set of
locks built on the Atlantic as well as the Pacific end of the
canal, the widening and deepening of the canal itself, as
well as an increase of the maximum water level of Gatun
Lake. This artificial lake not only represents a large part of
the waterways through the Isthmus of Panama, but serves
at the same time as reservoir for the enormous amounts
of water required to operate the locks. Some key figures of
the expansion project:
• Construction time:
9 years
• Cost:
USD 6.9 billion
(originally projected were
USD 5.3 billion)
• Chambers:
427 x 55 x 18.3 m
(length x width x depth)
• Max. vessel size:
366 x 49 x 15.2 m
(«NeoPanamax»)
• Max. capacity:
appr. 14,400 TEU per vessel
(= 20’ Container)
ATLANTIC OCEAN
(CARRIBEAN SEA)
COLON
PANAMA CITY
2012, Nicaragua’s President Daniel Ortega surprised his fellow-countrymen with the announcement that he had made
a deal with the Chinese investor Wang Jing to build a canal of
their own. Although there had been no invitation to tender,
and nobody knew of the company Hong Kong Nicaragua
Canal Development Co. Limited, the Nicaraguans reacted
with enthusiasm. For more than 150 years the country had
dreamed of a waterway linking the oceans that would catapult it into the future. Panama, thanks to its canal, became the
richest country in Central America, whereas Nicaragua, after
Haiti, is considered to be the second-poorest country in the
western hemisphere.
Subsequent to ‘cutting the sod’ in 2015, nothing more has
happened, so that it seems doubtful whether the Nicaragua
canal will really be built. A far greater danger for Panama and
its dependence on the canal is global economy, the low oil
price and climate change. After the financial crisis in 2008, 4%
fewer containers were shipped through the canal. Sinking oil
prices make the 15,000 kilometer-long detour round Cape
Horn more attractive for the shipping companies. In addition, climate change could lead to a lack of water in the canal:
crossing through the canal, each ship requires 200 million liters of water that mainly comes from the artificially dammed
Lake Gatún, whose reservoir is sufficient at present – but if
there is less rain, its replenishment is not guaranteed.
When, on 26th June 2016, the new locks opened for the
Chinese freighter ‘Cosco Shipping Panama’, there was no talk
of these worries. Everyone was happy that it was finally getting going. The ship with Captain Jude Rodriguez had been
chosen to make the prestigious first crossing from the Atlantic to the Pacific Ocean. China is a really important customer,
but the USA is actually the largest: 70% of the freight up to
now is for or from the United States.
There will always be some bottleneck or other for container ships. If a giant ship from, for example, Asia, wants to
sail along the east coast of the USA and go further west, it can
certainly traverse the Panama Canal, but founders in another
location: a 14,000 TEU freighter can simply not fit under the
New York Bayonne Bridge which blocks the access to important ports. There still remains a lot to be done in the future.
Bernadette Jourdan, Muttenz
PACIFIC
OCEAN
EAST TO WEST OR WEST TO EAST?
To get from the east (Atlantic side) to the west (Pacific side),
one has to travel through the Panama Canal in the opposite
direction, i.e. from the (north-)west to the (south-)east!
6
PANORAMA
With a state festival, an official ceremony and
many public parties, the Gotthard Base Tunnel
was opened in Switzerland on 1st June, 2016.
It leads 57 kilometers through the Alps and is
thus the world’s longest train tunnel. The Gott­
hard is one of the most important crossings of
the Alps in any case.
Clean air is worth money to the Swiss – a lot of money. To protect the alpine valleys from the increasing noise and pollutant emissions of international road freight haulage, an Alpine
initiative was accepted that would restrict the road transit of
truck transport. Already in 1991, parliament voted for the construction of two base tunnels through the Gotthard and the
Loetschberg – although these were not principally intended
to protect the public, but rather to cope with the doubling of
transit road freight transport growth expected by 2030.
For this purpose, Switzerland has been building the New
Alpine Rail Axes (NEAT) since 1999, comprising two north/
south lines to cross Switzerland at a low level. Three train tunnels will take the traffic: the Loetschberg tunnel and the Gotthard and the Ceneri base tunnels. The 34.6 km long Loetschberg tunnel for the westward crossing has been operational
since 2007, and the 57.1 km Gotthard base tunnel to the east
was inaugurated on 1st June 2016; with the new timetable
change on 11th December it will be officially in operation. In
2020, the 15.4 km long Ceneri base tunnel will follow.
The NEAT will increase rail capacity considerably. The
Gotthard base tunnel reduces distance by 31 km and travel time by 50 minutes. Five cargo trains will run each hour
and direction – that is 240 trains a day; the previous route
over the mountain section could handle no more than 180
trains a day. In 2021 the NEAT will be upgraded throughout
for the transport of 4-meter-high shipments in unaccompa-
SWITZERLAND
GOTTHARD
BASE TUNNEL
nied combined transport (UCT). The train length can then be
740 m instead of 600 m, and the train weight 2,000 instead of
the present 1,600 tons.
This demands alterations to the tunnels, station roofs and
overhead lines on the access routes to the Gotthard. Switzerland finances similar profile expansions even abroad, such as
on the Luino line in Italy. Due to the shortening of the time
interval between trains, 80% of the signals have to be moved,
and the total cost of the project will amount to a further
EUR 950 million. This means that from 2012 onwards, an additional 160,000 truck transports per year can be taken by rail
across Switzerland.
The access routes in Germany are currently behind
schedule. According to the German Ministry of Transport,
the four-track upgrade between Karlsruhe and Basel will only
be completed in 2035, and the full expansion will not be
operative before 2041. The reason for this is the reprogramming required after the conclusion of public participation.
Having said that, it was provided in the 1996 Lugano Agreement between Germany and Switzerland that the capacity of
the access routes should be implemented parallel to traffic
growth. In Italy, work is proceeding. However, the Gotthard
base tunnel will not be fully utilized when it starts operations. “It is a structure for coming generations,” says the Swiss
Foreign Office.
Source: DVZ
AFRICA
TANZANIA
TERMINAL 3
In anticipation of an ongoing increase in international flight
movements and numbers of passengers, the Julius Nyerere
International Airport – the airport of Tanzania’s capital city
Dar es Salaam – is being extended with a new terminal. In
April 2013, the Dutch general contractor BAM International
was awarded the contract to construct the new Terminal 3.
International flight movements will in future be handled at
the new Terminal 3, whilst the older Terminals 1 and 2 will be
used for national aviation only.
Spedag Interfreight Tanzania Ltd. was commissioned to
handle the local logistics for the materials from abroad required for the new terminal. The service package comprises
Customs clearance of incoming consignments and taking
over the materials ex ship in the port of Dar es Salaam with
delivery to the building site at the airport. The steady flow of
goods includes, besides regular ‘General Cargo’, ‘Out of Gauge’
or over-sized parts that require specialized transport.
In spring 2014 the realization of Phase 1 of the project was
commenced. This comprises the construction of the main
building, intended for 3.5 million passengers a year, as well as
access roads, parking lots, taxi lanes to connect the terminal
with the two runways, in addition to an observation terrace
for spectators. In November 2015 a start could be made on
Phase 2, which will expand the terminal to have a capacity
of up to 6 million passengers a year. This phase is also being
implemented by BAM International, and local logistics are being looked after by Spedag Interfreight.
Nainesh Patel, Dar es Salaam
MANAGEMENT UPDATE
In the course of the succession plan in East Africa and
the ensuing changes in the management structure, Dilip
Bhandari has been appointed CEO for East Africa of Spe­
dag Interfreight.
Dilip Bhandari was born in Chennai and brought up in
Ahmedabad, capital city of India’s Gujarat state. Gujarat,
situated northwest of Mumbai, is the home state of India’s
prime minister Modi, and known as a talent foundry, having
spawned many of the country’s business elite. Equipped
with a Bachelor’s Degree from the Institute of Chartered
Accountants in India, he went to Nairobi in 2002 to enter
Interfreight East Africa as Controller. Soon afterwards he
was moved to Uganda, where he worked first as Commer­
cial Director and later as Country Manager.
From 2011, following the merger of Spedag East Africa and
Interfreight East Africa, Dilip was in charge as Regional Di­
rector Oil & Gas of the newly founded Spedag Interfreight.
Under his leadership the Oil & Gas sector was significantly
expanded and the company grew into one of the most im­
portant logistics partners in this branch of industry.
DILIP BHANDARI
CEO East Africa, Kampala
PANORAMA
9
INFRASTRUCTURE
AFRICA‘S FUTURE IS ON THE RIGHT TRACKS
In April, the Propeller Club, Port of Basel – to­
gether with Swiss-Africa Chamber of Commer­
ce – extended an invitation to an event called
‘Africa in Focus’. The main speaker of the eve­
ning was Josef Lenherr, former Managing Di­
rector of Spedag Interfreight AG, who retired
in November.
The title of his fascinating account was ‘Africa’s future on
the right tracks’, where he illustrated how in the near future
– mainly through the China Road and Bridge Corporation –
more than 200 billion US dollars will be invested in rail infrastructure projects. The reason for the boosting of rail logistics
is quite simple: Africa is rich in raw materials – from wood
to copper through to coal and oil, all those things that other
countries lack, but need badly. Precisely these goods will be
supplied in return for the capital advanced.
To produce these resources is one thing: to transport
them is another. The African road network is poorly developed, and there are hardly any motorways. During the rainy
season the roads are impassable in parts, bridges are swept
away and roads turn into mud holes. Another problem is
that the larger arterial roads usually lead straight through
the center of cities. Anyone who has ever experienced the
center of an African city during the rush hour, knows how
time-consuming and nerve-wracking it is. Moreover, the axle
weight per heavy goods vehicle is limited to 8 tons. It therefore stands to reason that bulk cargoes like steel, wheat, rice,
relief aid, sugar, coffee, crude oil and cement should be transported by train, as heavy loads of up to 60 tons per axle can
be moved by rail. Transport time is reduced drastically with
the new installations, energy consumption is incomparably
less and the transport security higher.
The new railroad from Mombasa to Nairobi, to be opened
in 2017, is evidence that the plans for expansion are no utopia. This section – built as standard gauge – should soon
traverse the whole southern part of the country and go on
further to Uganda, Rwanda and Burundi; a second line should
go from Uganda to South Sudan. The new railroad will cut
the travelling time between Kenya’s large cities Mombasa
and Nairobi from twelve hours today to only four hours, and
this section is already 75% completed. At the laying of the
AFRICA
foundation stone in 2013, Kenya’s President, Uhuru Kenyatta,
proclaimed that not only Kenya but all East Africa would be
changed by these rail tracks.
Three years ago the nearly 500 km-long stretch from Tororo, in south-east Uganda, to Gulu, on the frontier to South Sudan, was put into operation through the initiative of Spedag
Interfreight. This line had been abandoned for over 20 years,
and it was a historic event as Spedag Interfreight loaded a
container with steel. The container was unloaded in the port
of Mombasa and taken by road to Uganda. With their investment, Rift Valley Railways changed the logistics market in
East Africa and simplified goods handling between Uganda
and South Sudan considerably. The new logistics combination of rail and road enable our customers to have efficient
and lower-cost goods handling. Along the routes in northern
Uganda, in the east of the Democratic Republic of Congo and
in South Sudan, goods can be transported whilst avoiding
the difficult roads. If interested, you can see a film about this
event on our own You Tube Channel (“M+R Spedag Group”).
Movie Recommendation
Captain Phillips
2013
Tom Hanks
The movie is a multi-layered
examination of the 2009 hijacking of the U.S. container
ship Maersk Alabama by a
crew of Somali pirates. Based on a true story, the film
focuses on the Alabama’s
commanding officer, Captain Richard Phillips, and the
Somali pirate captain, Muse,
who takes him hostage. In
the ultimate standoff, both
men will find themselves at
the mercy of forces beyond
their control.
Bernadette Jourdan, Muttenz
Why are we recommending you to see this film? Because
Spedag Interfreight was involved in a thriller of the same
sort! Just four days before the attack on the ‘Maersk Ala­
bama’, the German container ship MS Hansa Stavanger
was hijacked by Somali pirates, 400 sea miles off the coast.
The ship was on its way from Jebel Ali to Mombasa, Kenya,
where it was expected to arrive on April 5th. On board were
three oversized turbine casings (draft tube cones) loaded
onto two flat racks, destined for a hydroelectric power sta­
tion under construction in Uganda, for whom Spedag In­
terfreight was carrying out the logistics.
In view of the hijacking and the uncertain outcome of the
situation, the customer was forced to find a solution for
the components blocked by the pirates. The machine parts
were re-ordered, not, however, from the original supplier
but from another manufacturer in Nairobi, Kenya. In this
way at least some time could be saved with transport to
the final destination.
In August – four months after the hijacking and after the
payment of 2.7 million US dollars ransom – the Hansa Sta­
vanger was released by the pirates. The crew was able to
disembark in Mombasa, reasonably safe and sound. Even
the original components could be unloaded in Mombasa
port, six months late. The Bujagali power station must be
one of the only ones in the world that runs with substitute
turbines, whilst the actual originals sit and wait to be used
as replacements.
PANORAMA
11
WELCOME TO
VIETNAM
f.l.t.r.: Othmar Hardegger (Consul General), Gareth Evans (Exec. Director, M+R Singapore)
After M+R Forwarding in Vietnam became operational in
spring 2015, the inauguration was formally celebrated the
following autumn with ceremonies at the Ho Chi Minh City
and Hanoi offices.
In Ho Chi Minh City, where the new company’s headquarters are located, in addition to the formal ceremony on the
office premises there was also a celebration to which customers and partners were invited. The event was opened by
Daniel Richner, owner and CEO of the M+R Spedag Group,
together with Othmar Hardegger, the Swiss Consul General.
Special thanks were given to Gareth Evans, Executive Director
of M+R Singapore. Besides being the Manager of M+R Singapore, he is also responsible for Malaysia and Indochina. In
the past two years Gareth has regularly flown to Vietnam to
oversee the preparatory work and the initial stages, and has
spent nearly as much time there as in Singapore.
The opening in Vietnam was the largest opening in M+R
Spedag Group’s company history. Offices in Ho Chi Minh
City, Hanoi and Haiphong with a total of 40 employees commenced operations in one fell swoop. Of course, the new
country organization was able to benefit from the well-established structure of the M+R Asia Organization, and it received
enthusiastic support from this side.
Looking back, we may feel proud of what has been
achieved. The start went off without a hitch, and M+R Vietnam has already developed well in its first 18 months.
Stephan Schneider, Muttenz
f.l.t.r.: Daniel Richner (CEO, M+R Spedag Group), Kate Pham (Director, M+R Vietnam),
Gareth Evans (Exec. Director, M+R Singapore), Nguyen Van Anh (Hanoi Branch Manager)
ASIA
MANAGEMENT UPDATES
In spring 2016, Giovanni Salce was appointed as the new Regional Di­
rector with a focus on Business Development. Giovanni Salce has worked
with M+R for most of his career, first of all in Switzerland and for the past
25 years in Asia. After two years in Hong Kong in the regional main office of
the then still-young organization, he moved to Jakarta in 1993 as country
manager for M+R Indonesia. In 1999 came a move to Bangkok, where he
was responsible not only for the national organization but also in charge
of the whole of South East Asia. Following 17 years in Thailand, Giovanni
Salce returned to Hong Kong this year; after 25 years affiliation, he is a ve­
teran of the M+R Asia organization.
In the future as well, Giovanni Salce will continue to fulfill a whole series
of functions. He is responsible for business development in the entire Asi­
atic region, whereby he benefits from having an impressive network not
only within the organization but also from many years of personal contact
with all our important partners and customers worldwide, by whom he is
greatly respected.
giovanni salce
Regional Director, Business Development East Asia
In autumn last year, Klaus Schumann took up his position in Shanghai as
Director for China. Although he is a new member of M+R, he brings with
him nearly thirty years of business experience in Asia. He comes from a
traditional background, too: after an apprenticeship as a logistics manager
in Europe, he left for Asia and climbed the career ladder there in various
locations and positions. He has lived and worked in Hong Kong, Indonesia,
Malaysia, in the Philippines, in South Korea and Thailand.
Klaus is originally from Hamburg, so it is not surprising that he built up his
initial work experience as a maritime freight specialist. Later, In Asia, he
steadily improved this expertise. In his position as branch manager he was
responsible for all operational sectors and later on, as country manager in
various locations he additionally carried the responsibility for the admini­
strative aspects.
Klaus Schumann feels completely at home in Asia. In his own words, the
move to Asia was the best decision he ever made in his whole life, and if
there is anything he regrets, it is only that he did not take that step earlier.
KLAUS SCHUMANN
Director, China
PANORAMA
13
INDIA
SUPER
HEAVY
A major client has chosen M+R India to handle
the logistics for the transport of cement in seafreight containers to Sri Lanka. Every week se­
veral hundred containers, each heavily laden
with 28 tons, are shipped from the docks in
Krishnapatnam to Colombo.
Bharati Cements is a core firm of the Indian VICAT company
conglomerate. With its production of more than 8 million
tons per year, the company is one of the largest cement
manufacturers in the country. The factory in Kadappa, in the
Indian state of Andhra Pradesh, alone produces some 5.5 million tons.
In May 2015, M+R India was invited by Bharati Cements to
draw up a comprehensive logistics concept for its exports to
Sri Lanka. The service providers were required to offer several
variations, with shipping from the ports of Krishnapatnam as
well as Chennai, and with initial transport both by road and
by rail. The total volume amounted to 180 TEU (20’ containers)
per week, each weighing 28 tons.
The client finally decided on the variant through the port
of Krishnapatnam, the choice being based on several factors:
firstly, this port provides advantages for and greater efficiency
in container handling, and in addition there are no weight
restrictions in Krishnapatnam for cargo handling by rail.
Krishnapatnam Port is the largest privately-owned Indian
deep-sea harbor and covers an area of more than 25 km2. The
harbor’s container terminal (KPCT) became operational in
2012 and has an annual handling capacity of 1.2 million TEU.
In a second expansion phase, this will be extended to 4.8 mil-
14
PANORAMA
lion TEU per year. Virtually all the big shipping companies, including Maersk, MSC, CMA, Evergreen, Mitsui O.S.K., Hyundai
and APL, discharge their container ships at KPCT. The terminal
offers direct rail connection, container loading stations (CFS)
and storage facilities in the port area. KPCT is the only harbor company in India certified according to ISO28000:2007
(Safety Management System for supply chains).
The logistics concept for Bharati Cements envisaged
cement in quantities of 50,000 sacks to be conveyed to
Krishnapatnam, where these have to be loaded within 6
hours into 90 containers at KPCT, at the same time as all the
necessary documents are prepared and the export and customs formalities dealt with. After shipment, the Bills of Lading
must immediately be made available, as the crossing from
Krishnapatnam to Colombo takes only 48 hours.
The services of the various shipping companies then had
to be examined to see whether they were prepared to accept
such large quantities of Heavy-Lift containers, whether a sufficient number of empty containers could be made available,
and also of course whether the connections offered would
cover all the client’s requirements.
After M+R India was awarded the contract by Bharati Cements, the first batch of 90 TEU was successfully loaded and
shipped to Sri Lanka in May 2015. Since then these shipments
run regularly: 270 TEU are shipped every week, and to date,
M+R India have handled the shipping of more than 12,000
TEU for Bharati Cements.
M+R India is today KPCT’s largest customer in the export
sector. This business will grow even further; according to
Bharati Cements, the volume will rise by some 40% in 2017 to
over 1,500 containers a month.
R. Jayaram, Chennai
INDIA‘S LARGEST
SEAPORTS
MUNDRA
HALDIA
KANDLA
PARADEEP
MUMBAI
VISAKHAPATTANAM
NHAVA SHEVA
KRISHNAPATNAM
ENNORE
MANGALORE
CHENNAI
COCHIN
TUTICORIN
COLOMBO
ASIA
CONTAINERSHIPS
Some 60 years ago, the first containers were
deployed for commercial international mari­
time transport. At the beginning container
ships were of a reasonable size, but when the
triumphal progress of containers for universal
freight was seen in the 1970s, the ships gra­
dually became larger. In the 80s, imposingly
large ships were being built, although they
were nothing compared to the dimensions
of the ones built in the past ten years. These
ships are so huge that one must ask whether
the maximum limit will soon be reached.
GIANTS
OF THE OCEANS
The measurand for container ships is the so-called TEU (Twenty Foot Equivalent Unit). A ship with a capacity of 10,000 TEU
could theoretically be loaded with 10,000 20’ containers,
although ships are usually loaded with a mixture of 20’ (=1
TEU), 40’ (= 2 TEU) and 45’ (=2.25 TEU) containers, whereby
we should remember that this capacity data is based on the
maximum number of slots on the ship. If a ship were loaded
with fully loaded containers only, nowhere near all the slots
could be used.
In 1984, the then United States Lines brought its first four
so-called ‘Econships’ into service. With a capacity of 4,400 TEU,
these were at that time the largest-ever container ships, representing a new dimension in ship building and capturing
a lot of attention. However, only four years later the United
States Lines closed down; the concept of a Round-the-World
Service based on the Econships did not pay off. Despite the
failure of the United States Lines, container ships became
larger than ever in the mid-1980s. By 2014, thirty years after
the launching of the Econships, a ship holding 4,400 TEU does
not even bring a weary smile from people in the industry, as
the newest container ships have in the meantime reached
a capacity of 19,000 TEU. And the East Asiatic shipyards are
already preparing to build ships for 22,000 TEU – five times
more than the Econships, scrapped long ago.
Will the trend for ever-larger ships continue unchecked?
Hardly likely, says a growing number of experts, pointing out
that it is doubtful whether ever-bigger ships will really bring
shipowners the hoped-for cost reductions in the long run. It
is a fact that a larger ship causes lower costs per TEU, with a
large part of these reductions from lower fuel consumption
per TEU. However, with the present collapsing oil prices, this
saving weighs less heavily than it did a couple of years ago.
In addition, the sector has for some years been experiencing
a crisis. The global volume of maritime freight is subject to
strong fluctuations: whilst the ships are under way during the
Peak Seasons laden to the maximum, there are also months
of excess capacity. As soon as a ship’s utilization falls below a
certain percentage, it can no longer operate at a profit and
makes a loss; the larger the ship, the larger is the potential loss
if it is not fully utilized. To counteract this, every shipowner
does his best to maximize the utilization of his ships, causing a drop in ocean freight rates. In the past 20 years various
ups and downs in these rates have been seen, but overall the
trend has been continually downwards, and the entire sector
is today in a severe crisis.
Huge vessels have other problems, too. They cannot be
used everywhere; ships with a capacity of some 14,000 TEU
can use the newly widened Panama Canal – but anything
larger does not fit through the new locks. The Suez Canal will
reach its limits with the 22,000 TEU ships currently being built.
Harbours will constantly have to extend their infrastructure
so that large ships can call. For example, there are at present
talks in Hamburg as to whether the River Elbe will have to be
deepened further so that the ships of the future can access
the docks. The ever-wider ships require crane systems with an
appropriate reach to make loading and unloading possible.
Although this expansion is, of course, linked to higher costs,
harbour and terminal operators do not want to and may not
shut themselves off from the increasingly larger ships, as they,
too, are in competition with one another.
We will see if in another 30 years we will be laughing at
today’s ships – or if the zenith will soon be reached in the
matter of ship dimensions. The fact remains that one is always fascinated by modern container ships, whether they
can carry 4,400 or 19,000 TEU – they are truly tremendous.
Stephan Schneider, Muttenz
the Evolution of containerships
Based on the ships loading capacity
measured in 20’ containers (TEU)
2006
15‘500 TEU
1972
1970
3‘010 TEU
1984
4‘400 TEU
1996
2014
19‘225 TEU
2003
8‘272 TEU
7‘000 TEU
1‘665 TEU
1955
210 TEU
PANORAMA
17
CVT
MYANMAR
For several years the M+R Spedag Group has
been supporting with its logistics services the
Center for Vocational Training (CVT) in Myan­
mar. Many of the tools and equipment were
originally donated from Switzerland and had
to be conveyed to Myanmar. At the moment
this applies to the second-hand laptops that
have been collected in Switzerland.
The free preschool program E4Y gives youngsters who have
had to break off their schooling for financial or family reasons,
a chance to make up for missing elementary school; after four
years they obtain an officially recognized school-leaving certificate. Afterwards around two thirds of the E4Y graduates go
on to a three-year apprenticeship at the CVT or find a job in
the labor market.
The syllabus of the E4Y is comparable to that of Swiss primary schools and is supplemented by study contents to cover
the learning objectives of state schools in Myanmar. Besides
standard subjects, the E4Y offers additional ones that are lacking in the state schools. These include sports (gymnastics and
swimming), textile and non-textile work, computer studies
and drawing, as well as other life-skill courses such as health
checks, trial training courses, placements and excursions.
When it comes to informatics, the trainees have until now
had to use the eight desktop computers and a couple of laptops in the teachers’ room for their lessons, which often led
to bottlenecks and splitting the class up, as altogether there
were only a dozen computers available for classes averaging
25 trainees. The situation was eased this summer with a first
delivery of ten laptops to the school, as these can now be
used in the classroom instead of in the teachers’ room. The
target is to have a class set plus a piece of equipment for each
teacher so as to be able to offer sound and sustainable computer studies. This will require a further supply of about 23 to
30 laptops next year.
Locally, an IT manager looks after the hardware and software and a teacher offers the informatics module in the last
two school years. At present, the CVT is drawing up and optimizing a new syllabus for this module. The main goal is for
each E4Y student to master the ten-finger system as well as
having a basic knowledge of the Microsoft Office applications
Word, Excel and PowerPoint. The trainees should also be able
to carry out simple internet searches. In addition to the laptops, the classrooms will be equipped with beamers, which
are replacing the traditional overhead projectors. For the past
three years E4Y has also been offering a module in dental hygiene supported by an experienced dental hygienist. In this
context, 1,500 toothbrushes and 300 tubes of toothpaste are
carried to Myanmar each year.
The CVT is a shining example of practical aid. Its commitment means it acts exactly where it can make a sustainable
difference, by helping youngsters get a qualitatively high
standard of education, giving them sound prospects for a
promisingly bright future.
Ricco Ebener, E4Y Responsible, CVT Myanmar
18
PANORAMA
CORPORATE SOCIAL RESPONSIBILITY
SPEDAG LADIES
Spedag Ladies FC was the first women’s football club to
be established on Kenya’s east coast. Its aim was to offer
less-privileged young women in Kenya new prospects for
the future though sport, education and various extracurri­
cular activities. The club would moreover give these young
women the opportunity to show their talents at interna­
tional matches and possibly even be recruited by a profes­
sional football team.
Apart from playing football, the team had a community
program: the Peer Education and V.C.T. (Voluntary Counse­
ling and Testing) program for reducing the spread of HIV/
AIDS in society, conducted in collaboration with the Mi­
nistry for Sport, UNICEF and ICRC, who all gave the ladies
various forms of training. Older players were coached and
attended courses for referees, mainly to give support to the
new generation of women players, but as well so that they
could get a little more income.
After beginning as a social project, many successful com­
petitions later a success story has been written by these
Kenyan women, who are determined to conquer in the world of football with their great commitment and iron discipline. In
2015 the team won amongst others the renowned ‘Jamhuri’ tournament. Jamhuri is Swahili and means Republic; the tour­
nament is held on 12th December each year – the National Day celebrating when Kenya became independent from Great
Britain in 1963.
In the 2014/215 season, Spedag Ladies also had an important say in the decision for the championship title of the Kenyan
Women’s Premier League. They ended the season as runners-up, only a single point behind the Thika Queens. Five of the best
goal scorers in the league play for Spedag Ladies. Their target for 2016: winning the championship.
“We have excellent players and appreciate the many talents we’ve got in the club”, says team manager Sarah Ongoya. Esse
Akida, a Kenyan international player, joined the team at the beginning of the season, and made a significant contribution to
the Spedag Ladies’ success in the first half of the championship. Esse is the top goal scorer in the league.
In the meantime, nearly half the positions in the Kenyan Women’s International Team, Harembee Starlets, are filled by players
from the Spedag Ladies’ team. At the renowned COTIF championship last August in Spain, the Starlets reached an excel­
lent fourth place. Thanks to key players from Spedag Ladies, the international team has for the first time qualified for the
Africa Women Cup of Nations (played in Cameroon from 19th November to 3rd December, 2016). The team manager for Ha­
rambee Starlets is Doreen Nabwire
Omondi. In 2006, Doreen became
street-football world champion in
Berlin with the MYSA project, FIFA
ambassador at the draw for the
World Cup 2010, as well as trainer,
international player and top scorer
at SV Werder Bremen.
Bernadette Jourdan, Muttenz
www.spedagladies.com
Each year, M+R India is holding an internal drawing competition.
Children of staff members can submit drawings, the best of which
then are selected to adorn a desktop calendar.
www.mrspedag.com
HEADOFFICE
M+R SPEDAG GROUP
Kriegackerstrasse 91
4132 Muttenz / Basel
Switzerland