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Emirates Cargo



DUBAI: September 05, 2018. The Dubai government has been granted an injunction by an English High Court to stop Djibouti’s port company, Port de Djibouti S.A. (PDSA), from terminating its joint venture agreement with DP World and its management of the Doraleh Container Terminal (DCT).

PDSA is majority-owned by the government of Djibouti and its CEO is the chairman of the Ports & Free Zones Authority of Djibouti. Hong Kong-based China Merchants is a minority shareholder in PDSA.

Djibouti port board meeting Jan 2018According to the government of Dubai, owner of DP World, If PDSA ignores the Court’s order and tries to replace DP World-nominated directors of the DCT at a September 09 shareholders meeting, it could face a fine or the seizure of its assets and its officers and directors imprisoned.

This is the third legal ruling in favour of DP World following two previous decisions from the London Court of International Arbitration (LCIA). On each occasion, DP World has been recognised as having legal management control of the DCT joint venture, even though the PDSA is the majority shareholder.

The latest Court ruling says PDSA cannot act as if the joint venture has been terminated; cannot appoint new directors or remove DP World’s nominated directors without its consent; and cannot instruct, or cause DCT to instruct, Standard Chartered Bank in London to transfer funds to Djibouti.

With another hearing set for September 14 when PDSA is expected to respond to the Court order, DP World has notifed Standard Chartered Bank and China Merchants to ignore any instructions from Djibouti to transfer funds after the September 09 meeting.

Meanwhile a report from London-based risk analyst EXX Africa suggests the takeover of the DCT by the Djibouti government could allow it to be used as a processing center for regional arms trafficking.

With much of the country’s recent economic success due to DP World’s management of the DCT and landlocked neighbour Ethiopia’s decision to use Djibouti as its main gateway, EXX Africa says a key concern is who controls the country’s ports in future and what effect the growing illegal arms trade in the Horn of Africa will have on its political stability.

(M.Saad Omar Gueller, Port of Djibouti general manager, is pictured third from the left in the blue suit.)

HAMBURG: August 28, 2018. Outsize and project cargo specialist Hansa Heavy Lift has carried over 3,500 tonnes of oil-related equipment from the UK North Sea port of Newcastle to Lagos, Nigeria for delivery to the Egina Oil Field.

Egina FPSODiscovered in 2003 and operated by French oil major Total, the field is located at a depth of 1,400 to 1,700 metres some 200 kilometers offshore Port Harcourt. Drilling began in December 2014 and production is expected to begin later this year.

The project is based on a subsea production system connected to a floating production, storage and offloading vessel (FPSO) designed to hold 2.3 million barrels of oil (right). Weighing close to 220,000 tonnes and measuring 330 meters long by 60 meters wide, the Egina FPSO is the largest ever built by Total.

Once construction work is complete, it will connect to 44 subsea wells 1,600 meters deep to produce 200,000 barrels of oil per day – 10 percent of Nigeria’s oil output.

As part of the project HHL used its super heavylift vessel HHL Lagos to carry a 2,200-tonne carousel and eight reels used to lay undersea pipe and umbilical cable for the offshore oil industry. When fully wound, the carousel can store up to 120 kilometres of cable for connecting land to offshore rigs and wellheads.

Italian oil and gas contractor Saipem installed the empty carousel on the vessel in Rotterdam prior to the Newcastle call and managed the subsequent unspooling in Lagos.

CHATSWORTH, GA: August 22, 2018. The Georgia Ports Authority (GPA) has opened an ‘Appalachian Regional Port’ (ARP) served by CSX Railroad to provide logistics solutions for customers across North Georgia, Northeast Alabama, Tennessee and Kentucky.

The inland facility is expected to cut costs and CO2 emissions by removing 50,000 trucks and 15 million truck miles from local highways every year.

“The [port] is a powerful new gateway to the Port of Savannah that extends the efficiencies of Georgia’s superior port operations to new markets,” commented state governor Nathan Deal. “It will also serve as an economic development magnet, drawing business and industry to the Southeast U.S.”

Appalachian Regional PortHandling both import and export containers, CSX will provide a direct, 388-mile rail route to and from the Port of Savannah's Garden City Terminal. The ARPl will operate three electric gantry cranes to handle up to 100,000 container lifts per year.

Steve Bevan, director of Transportation and Logistics for Georgia-based manufacturer Mohawk Flooring commented: “We plan on using it as a cost-savings initiative. Instead of trucking from Savannah to North Georgia, we’ll pick up the containers in Chatsworth at the ARP, and truck it from there to our locations. We’re going to use it as much as we can. It’s a significant cost savings for us.”

Earlier this month the Port of Savannah reported its second-busiest month on record in July with the handling of 378,767 TEUs, a 12.7 percent increase over the same month last year.

“July was an incredible start to our fiscal year, with double-digit growth across our container, breakbulk and dry bulk operations,” said GPA executive director Griff Lynch.

For its fiscal year ending in June, rail cargo increased 16 percent, or some 60,000 containers, for a total of 435,000 intermodal rail lifts. Last month continued the trend with the busiest month on record at 41,070 container moves, an increase of 20.8 percent year-on-year.

“Greater capacity, via cost-effective 14,000-TEU vessels transiting the Panama Canal, makes Savannah an even more competitive option to serve the Eastern US,” said Lynch. “This, in part, is driving an increase in rail moves to markets such as Memphis and Nashville.”

Total GPA tonnage in July grew 10.5 percent, or nearly 300,000 tons, for a total of 3.15 million tons handled.

Pictured: Georgia governor Nathan Deal, center with scissors, during the opening of the Appalachian Regional Port near Chatsworth, Georgia. The inland terminal will be operated by the Georgia Ports Authority and served by CSX.

FRANKFURT: August 23, 2018. Cargo handling agent LUG has updated its Frankfurt International-based Health Care Center (HCC) in the airport's CargoCity South with an expansion of its temperature-controlled area to 625 sq.mt.

IATA CEIV Pharma Certificate Award IMG 5386And due to rising demand the company has just started construction of an additional 190 sq.mt. expansion which is planned to go into operation by the end of 2018.

LUG says the handling of pharmaceutical products, as well as the corresponding infrastructure, have been certified recently to the IATA CEIV Pharma Standard: “We are delighted that, as a key member of the Air Cargo Community Frankfurt, LUG aircargo handling (FRA) has completed this process,” said Mathias Jakobi, IATA’s Area manager Central Europe.

“This important certification demonstrates the commitment and expertise of LUG in handling sensitive and high value pharma shipments according to international industry standards. It also strengthens the position of Frankfurt airport as one of the leading pharma gateways worldwide,” he added.

“LUG has invested heavily in the handling process of temperature sensitive goods with the expansion and modernisation of the HCC. Throughout the whole development process the IATA CEIV Standard has given us a clear guideline to provide our clients with the services that sensitive products require,” aded Dominik Misskampf, senior Project manager and manager HCC, LUG aircargo handling.

Different rooms in the Health Care Center offer temperature ranges between <-18°C, 2-8°C, and 15-25°C and the capacity can be adjusted to operational needs says the company, a member of the family-owned Dettmer Group.

DUBAI: July 02, 2018. Dubai Trade World, a subsidiary of DP World, is launching an electronic trade portal in the Dominican Republic.

DT World is providing its ‘Mawani’ system that connects logistics services with DR Trade – a new joint venture formed by DP World Caucedo and the Haina International Terminal (pictured).

Haina Int. Terminal“The new portal will offer a single online window for the Dominican Republic’s traders operating across the supply chain, using a proven and streamlined flow of services designed around their needs,” explained DT World COO Mahmood Al Bastaki. “The millions of transactions between ports, shipping lines, agencies, distributors, importers and exporters, can result in duplication of effort and will now be done through a new, paperless platform,” he added.

Bastaki said the Mawani community system would prompt greater intra-regional trade by reducing operating costs and cargo handling times, resulting in an improvement in logistics performance, border compliance and support for the country’s vision to be a regional trade hub.

DR Trade general manager Francisco Domínguez said DR Trade’s electronic platform would also improve the competitive position of the Dominican Republic’s logistics community.

DUBAI: August 4, 2018. The Djibouti government of president Ismaïl Omar Guelleh has rejected this week’s London Court of International Arbitration (LCIA) decision that it has illegally seized the Doraleh Container Terminal (DCT) from DP World.

DP World responded saying Djibouti’s rejection of the LCIA ruling demonstrates it does not recognise the principles of international law that are binding on both the government and the port operator.

Doraleh Container Terminal“As the Court has held, Djibouti does not have sovereignty over a contract governed by English law. It is well established that, in the absence of an express term to that effect, an English law contract cannot be unilaterally terminated at will. The contract therefore remains in full force and effect,” said the company.

In 2006 the government of president Guelleh signed a 50-year concession agreement with DP World to build and operate the DCT (pictured) with a shareholding split 67-33 percent respectively.

With an annual capacity of 1.3 million TEU and reportedly the most advanced ocean container terminal on Africa’s east coast, DP World says the DCT remains the largest employer and biggest source of revenue in the country, has operated at a profit every year since it opened, and has been found to have been a “great success” for Djibouti under its management.

The government continues to claim the port concession has proved contrary to the fundamental interests of the country – despite evidence to the LCIA demonstrating otherwise.

In 2013 China Merchants Port Holdings (CMPH) announced it had acquired a 23.5 percent stake in the Port de Djibouti S.A. (PDSA) from the Djibouti government saying the “core assets of PDSA included the Port of Djibouti (POD), Doraleh Container Terminal (DCT), off-dock depot (DDP) and Doraleh Multi-Purpose Port (DMP)”.

TALLINN: July 03, 2018. Hamburg terminal operator and transport company Hamburger Hafen und Logistik (HHLA) has completed the purchase of Estonia’s largest terminal operator Transiidikeskuse (TK) at the Port of Muuga.

Titzrath and simson Tallinn“We see great potential in the Port of Muuga, as well as in the entire regional market, and we are determined to make the most of it with the help of TK’s highly motivated workforce,” declared HHLA executive board chairwoman Angela Titzrath. “The takeover of TK is a first successful step in the implementation of our strategy. Hamburg and Tallinn share a long history as Hanseatic cities. We wish to revive this spirit, not least to generate growth in our core market,” she added.

The Port of Muuga is the main port in Estonia and is developing into a multimodal hub as a result of regional infrastructure projects such as Rail Baltica. TK is considered “the clear market leader in container handling in the Baltic country and also operates a multipurpose terminal for break bulk, bulk and RoRo handling,” according to HHLA.

Titzrath (left of picture) also met with Estonia’s minister of Economic Affairs Kadri Simson in Tallinn. The minister said she welcomed HHLA’s commitment to the Port of Muuga as it supported the government’s efforts to attract European investors to the country. Titzrath replied Muuga offered great potential as a European port and HHLA wanted the facility to have a successful future as part of a logistics network.

DUBAI: July 24, 2018. DP World Limited handled 35.6 million TEUs across its container terminals in the first half of 2018, with volumes growing by 4.8 percent year-on-year.

DP World H1 2018The first half of 2018 continued to see an upswing in global trade and all three DP World regions delivered growth, particularly in Europe and Australia. The UAE handled 7.7 million TEU in H1, a growth of +0.2 percent, year-on-year.

"Our portfolio has delivered an encouraging performance in the first half of 2018 with all regions continuing to deliver growth,” commented DP World Group chairman and CEO Sultan Ahmed bin Sulayem. “However, as expected there has been a deceleration in the growth rate in Q2 2018 due the tougher year-on-year comparables, where Q2 2017 grew 10.7 percent year-on-year driven by market share gains from the new shipping alliances.

Bin Sulayem added that as geopolitical headwinds and recent changes in trade policies continue to pose uncertainty to the container market, first half volume performance demonstrates that DP World's portfolio is well positioned to deliver growth.

"The robust performance across all regions continues to be an affirmation of our strategy to deploy relevant capacity in key markets and operate a diversified portfolio. We are pleased to see our terminals in Europe and Australia continue to deliver growth and still expect to see increased contributions from our new investments in the second half of the year," he noted.

Adani Group Kattupali portAHMEDABAD, India: July 01, 2018. Adani Ports and Special Economic Zone, (APSEZ), India’s port developer and part of the Adani Group, has acquired a 97 percent shareholding in Marine Infrastructure Developer Private Limited (MIDPL), developer and operator of Kattupalli Port, Chennai.

The port has two berths with a quay length of 710 meters, six quay cranes, 15 RTG cranes and 5,120 ground slots to handle 1.2 million TEUs per annum.

Kattupalli is located 30 kilometers north of Chennai and connects with India’s industrial hinterland of North Tamilnadu, Chennai, the Bangalore region and South Andhra Pradesh.

APSEZ says it plans to transform Kattupalli into a multi commodity port handling containers, automobiles, breakbulk, general cargo, liquid cargo and project cargo.

“Adani Ports is committed to make Katupalli port one of the largest ports in southern India,” commented APSEZ CEO Karan Adani. “We are going to start our construction to diversify the cargo of the port and will be adding 40 million tonnes of new capacity in the next three years. We are confident that with our superior infrastructure and efficient handling of cargo we will be able to reduce logistics cost of industries in the region and be one of the engines of growth,” he added.

APM Terminals Mexico L CLAZARO CARDENAS, Mexico: July 09, 2018. APM Terminals at Lazaro Cardenas on Mexico’s Pacific Coast has begun a weekly block train to Mexico City following a successful pilot programme.

Two block train services were successfully tested - one to Mexico City and another across the US border to Houston - to prove the terminal was a viable alternative to Long Beach and Los Angeles for distribution to inland US destinations.

Now, with an established fixed weekly departure, the transit time to Houston is six days, the same as the rail service from Los angeles, according to the company.

APM says its Lazaro Cardenas semi-autonomous terminal has seen an increase to eight vessel calls a week since it opened in February 2017.

With two rail mounted gantry cranes to speed up vessel discharge, the terminal has its own rail Customs inspection facility with 34 dedicated bays and is a 24-hour operation providing a congestion-free turnaround and fast Customs processing time in partnership with logistics provider Damco.

DP World EthiopiaDUBAI, June 30, 2018. The Emirates news agency WAM reports DP World is planning to set up a logistics facility in Ethiopia to facilitate the transport of goods to landlocked countries in Africa.

"We are planning to set up a logistics complex in Ethiopia where goods can be transported from the port to it, and from there it can be transported to different African landlocked countries. We have signed a number of agreements with Ethiopia that will promote our friendly relationships with them,” said DP World Group chairman & CEO Sultan bin Sulayem (left of picture).

“Business groups in Dubai can always benefit from DP World’s presence in different countries including Rwanda and Egypt where re-exporting opportunities are abundant," bin Sulayem explained during a recent discussion with trade and business groups in Dubai.

Noting a growth in protectionism in trade between the European Union, China and the American market, he said the development presents new challenges but with wise leadership [they] can be turned into opportunities: ''We carefully study developments in international trade to always find alternative markets, and this can be sustained through enhancing our strategic partnerships" he continued.

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