CUSTOMER MAGAZINE ISSUE 1 | 2011 - Kalmar - Cargotec
Transcript of CUSTOMER MAGAZINE ISSUE 1 | 2011 - Kalmar - Cargotec
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8 10 20 The Navis acquisition enchances Cargotec’s total solutions offering
Introducing the ‘G’ Generation: A new era in cargo handling
Refined strategy moves Cargotec ahead
CUSTOMER MAGAZINE ISSUE 1 | 2011
Vietnam prepares for the future with Kalmar Zero Emission RTG™
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Contents03 Editorial
04 Facts and figures
05 Lessons learned in China: Pekka Vauramo
06 News
08 Three Angles on the Navis acquisition
10 The next generation of counterbalance equipment is here
14 Rebuilding Freeport
16 Modern container handling in Santos, Brazil
20 Global trends set the stage for Cargotec’s refined strategy
24 Vietnamese port goes greener with Kalmar Zero Emission RTG™
28 Hybrid development benefits from joint driving power
30 Customised solutions facilitate workflow in Spain
34 Supporting sustainability in day-to-day work
35 Insider column: Adrenaline rush
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Kalmar around the world is Cargotec’s customer magazine with a distribution of approximately 14,000 issues. Publisher: Cargotec Corporation, Sörnäisten rantatie 23, FI-00501 Helsinki, Finland. Editor: Elizabeth Gibson ([email protected]). Layout and production: Maggie/Zeeland. Printed by PunaMusta, Finland. The opinions expressed by the authors or individuals interviewed do not necessarily represent the views of Cargotec.
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Modern container handlingSantos Brasil is prepared to
handle more containers using state-of-the-art technology.
Cargotec’s expertise in container and heavy load handling is represented in the global marketplace by the wide range of Kalmar solutions. This includes ship-to-shore cranes, yard cranes, shuttle and straddle carriers, reachstackers, empty container handlers, terminal tractors, log stackers, forklifts and automation. One in four container movements around the globe is handled by a Kalmar machine. www.kalmarind.com
Foreword
Refined strategy brings customers, new solutions to the foreground
2010 was a year of new beginnings for Cargotec, and
it is encouraging to see a tide of positive momentum
rolling through many of the cargo and load-handling
segments we serve. Although not all industries
and market areas have fully recovered, Cargotec’s
Industrial and Terminal business has picked up
significantly compared to a year ago.
In the autumn, Cargotec refined its strategy
underlining the importance of emerging markets,
services, internal clarity, and – most importantly – the customer (pg. 20). To enhance
our ability to serve customers and build withstanding relationships with them,
the Europe, Middle East and Africa (EMEA) region reorganised its business by
establishing a management structure in each country.
These changes are already starting to bear fruit starting within our industrial
business segment, namely loader cranes, truck-mounted forklifts and demountables,
especially in Scandinavian countries, Germany and France, where construction and
infrastructure spending has increased. The terminal business has also perked up
with year-on-year global container handling volumes increasing 14.5 percent in 2010.
This has put many large port projects back on the table, allowing Cargotec to show
its expertise as an experienced provider of total port solutions, including automated
terminals.
Our success going forward is dependent on our ability to be customer-focused. As
part of our strategy, we are already looking for new ways to enhance our customers’
businesses. The recent acquisition of Navis, a terminal operating system provider,
reinforces Cargotec’s desire to be more than just an equipment supplier (pg. 8).
However, improving our products is just as important, as seen with the launch of the
Kalmar DCG forklift – the first in a new generation of counterbalance equipment (pg.
10). Eco-efficiency is also a key factor in our customers’ operations. The Kalmar Zero
Emission RTG™ is attractive to terminals wanting to drastically cut emission and
noise levels (pg. 24).
There are many factors that have attributed to Cargotec’s current position as a
global market leader in cargo and load handling solutions. The most well-known and
appreciated by customers the world-over is our extensive service network. ‘Global
presence, local service’ is one of Cargotec’s three company values. It’s a part of who
we are, and how we’ll continue to be successful.
Harald de Graaf
Executive Vice President, EMEA
Cargotec reader survey
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Cargotec improves the effi-
ciency of cargo flows on land
and at sea – wherever cargo is
on the move.
Cargotec’s daughter brands,
Hiab, Kalmar and MacGregor,
are recognised leaders in cargo
and load-handling solutions
around the world.
Cargotec’s global network is
positioned close to customers
and offers extensive services
that ensure the continuous,
reliable and sustainable
performance of equipment.
The company employs
approximately 10,500 people.
Key figures in January–March 2011 Q1 2011 Q1/2010 2010 2009
Orders received, MEUR 819 598 2,729 1,828
Order book, MEUR 2,373 2,239 2,356 2,149
Sales, MEUR 763 555 2,575 2,581
Operating profit, MEUR 50.6 13.5 131.4 0.3
Operating profit margin, % 6.6 2.4 5.1 0.0
Income before taxes, MEUR 46.4 6.8 101.4 -26.7
Cash flow from operations, MEUR 36.2 46.5 292.9 289.7
Interest-bearing net debt, MEUR 335 336 171 335
Net income for the period, MEUR 36.2 9.8 78.0 7.1
Earnings per share, EUR 0.59 0.13 1.21 0.05
Sales by reporting segment 1–3/2011, %
Industrial & Terminal 58% (57%)• Equipment 70% (64%)• Services 30% (36%)
Marine 42% (43%)• Equipment 88% (84%)• Services 12% (16%)
Sales by geographical segment 1–3/2011, %
EMEA 41% (42%)
Americas 18% (18%)
APAC 41% (40%)
www.cargotec.com
About Cargotec
FACTS & FIGURES
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Lessons learned in ChinaCargotec’s Pekka Vauramo, Chief Operating Officer and Deputy to the CEO, moved from his native Finland to Hong Kong at the beginning this year to help drive the company’s development initiatives in the Asia-Pacific region. Kalmar around the world recently caught up with him to see how it’s going so far.
KAW: Asia’s – especially China’s – rapid growth has amazed people all over the world. What have you learned about business in Asia so far?PV: Asia’s rapid growth rate has certainly surprised us. Growth rates remain mere
figures until you visit the region and compare the present situation with that of
10 or 15 years ago. The pace of change has been incredible, especially in China.
If we seek growth in Asia, we have to act in time. We have to use proactive
recruiting methods. I would like to say to those coming here that China is no
longer a low-cost country. You have to pay the going rate for top talent, regard-
less of the nationality indicated on their passport.
KAW: How would you describe the business opportunities and challenges that China offers Cargotec? PV: China offers ample business opportunities, but competition is tough. There
are also local competitors, and all those coming from outside China compete
with them as well. It is not easy for anyone to do business here – China has really
been discovered.
KAW: Where is Cargotec heading to when it comes to Asian markets?PV: Companies coming from outside China often pay attention to the area
along the coast with the most vigorous growth. The average annual growth of
the economy is 8 to 10 percent, but in some parts of the country the figure can be
considerably higher – or lower.
It is easy to forget that inland areas also experience growth, and that the
growth rate can be very high there, too. It is important for us to familiarise our-
selves with the local business life and get access to the riversides and the railway
network.
We are examining these areas more closely. We have employed more than a
thousand people in China. In addition, we have reliable partners.
Delivery chains are becoming increasingly important in China. They are
currently being built as part of business and logistic solutions. We want to be
involved in this, and we will have to keep our own sales and service network up to
the challenge.
KAW: Why is understanding local conditions and challenges so important in China?PV: It is absolutely necessary to respect and follow local customs. For example,
we use no language other than Chinese in China when we agree on important
matters. I think that, as Europeans, we should encourage our local personnel
here to make decisions. At the same time, we must ensure that they have the
support of the headquarters. In this way, we can also show our partners that
although we come from a different country and culture, we are doing business in
earnest.
WHAT HAVE I LEARNED?
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NEWS
Cargotec strengthens foothold in Latin AmericaCargotec recently commissioned two Kalmar ship-
to-shore (STS) cranes for customers in Latin Amer-
ica. Handover of the crane to Port de la Guade-
loupe (PAG) in Guadeloupe occurred in December
2010, and the unit for Pinfra’s subsidiary, Infra-
structura Portuaria Mexicana (IPM), in Altamira,
Mexico, was delivered at the end of March 2011.
With container volumes steadily increasing,
the new Kalmar STS cranes will help PAG and IPM
expand their quayside handling capabilities. Both are
engineered according to high technical specifica-
Eco-friendly port cranes to Colombia
Cargotec and Sociedad Portuaria Regional de Cartagena, a leading South American terminal oper-
ator, entered into an agreement worth approximately EUR 40 million for the delivery of two Kalmar
ship-to-shore (STS) cranes and 24 Kalmar E-One2 Zero Emission™ rubber-tyred gantry (RTG) cranes.
The cranes, the first of their kind in South America, will be delivered in the second quarter of 2012.
The new equipment will help the customer handle the rising volume of containers at its termi-
nals in an eco-efficient way: The Kalmar Super Post Panamax STS cranes feature optimised hoisting
speeds requiring minimal energy consumption. The Zero Emission™ RTG cranes receive electricity
via an automated busbar connection.
Named Best Port of the Caribbean five times by the Caribbean Shipping Association, the
port of Cartagena operates currently with one of the largest Kalmar RTG fleets globally. The port is
expanding its capacity to accommodate an annual throughput of 4.5 million TEU.
Automated straddle carrier facility wins Terminal of the Year Patrick Container Ports, in Brisbane, Australia, won Terminal of the Year at the 15th annual Lloyd’s
List DCN Shipping and Maritime Industry awards, in November 2010.
Patrick is the world’s first and only free-ranging robotic straddle carrier terminal, pioneered by
Cargotec together with Patrick terminal operations and Patrick Automation. Patrick’s unmanned
fleet consists of 27 fully-automated Kalmar EDRIVE® straddle carriers.
“The award recognises
the innovative technology
developed in partnership with
Patrick’s subsidiaries and
Cargotec,” says Paul Garaty,
Divisional General Manager of
Patrick Container Ports.
Manila North Harbour boosts capacity with Kalmar forklifts
Manila North Harbour Port Inc. (MNHPI) recently
purchased four Kalmar forklifts from Cargotec
Asia Ltd in order to modernise port operations and
cargo handling at its domestic piers.
For the past three years, containerised
cargoes in the Philippines have increased annually
at about 3.5 percent. MNHPI is the busiest hub in
the country, handling approximately 82 percent of
these containerised cargoes.
MNHPI is committed to providing the best
terminal services by using the best equipment
available in the industry. “This is critical as we have
seen a steady growth of container load volumes
at the domestic ports,” says Renato Castillo,
President and CEO of MNHPI.
tions with many unique features that contribute
to reliable performance. For example, PAG’s STS
crane is capable of operating on a quay with
limited allowable wheel loads. In addition, the
unit is equipped for tropical conditions, includ-
ing wind speeds of up to 288 km/h.
Also this year, Cargotec commissioned
two 6+1 wide and 1-over-5 high Kalmar E-One2
rubber-tyred gantry cranes and started the
refurbishment of two existing STSs for IPM’s
Altamira operations. The customer deploys
many Kalmar container handlers thanks to
their reliability and Cargotec’s guarantee of
fast, local support. Kalmar STS crane in Guadeloupe.
Handover ceremony at MNHPI.
Senior leaders from Patrick Container Ports and Cargotec accepted the award.
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A rescue operation in Chile
A Hiab XS 215
crane was used
in test runs of the
capsule used in the
rescue operation
in Chile that saved
the lives of 33
miners trapped
7,000 metres
underground. All
men were brought
to the surface on
13 October 2010
following 69 days
in the mine.
Help in JapanJapan’s March tsunami had devastating effects on the Fukushima
Daiichi nuclear plant. Cargotec played an active role in the area’s
recovery process. A fire department rescue team used two special fire
trucks equipped with a Hiab XS 077 loader crane and a Hiab Multilift
demountable. Both solutions helped draw water from the sea for
cooling the nuclear power plant. The loader crane was used to pump
ocean water while the demountable was needed to reel in the hose
used.
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Cargotec lends a handAutoshuttle™ in action at the Tampere competence and technology centre Cargotec’s competence and technology centre, located in Tampere, Finland,
is an impressive showroom of Cargotec products. The centre features actual
cargo handling equipment in a simulated port facility, where the visitors
can witness the newest Cargotec solutions in action, such as a Kalmar
Autoshuttle™.
The Kalmar Autoshuttle™ is an automated shuttle carrier, which
streamlines vessel-to-yard-operations and eliminates traffic bottlenecks.
It decouples the work cycles of, for example, STS and automatic stacking
cranes, which means that all equipment can work independently at their
optimal operating speed and maximum productivity.
The competence and technology centre serves equally as a permanent
research and development testing site. The RDE (research, development and
engineering) functions at the centre support Cargotec’s leading position as
a forerunner in container handling innovations. The centre was inaugurated
in early 2011. Please contact your local sales representative for more
information.
A new range of Kalmar forklifts
CeMAT 2011 saw the launch of a range of Kalmar ‘F’-series heavy forklifts.
The industry event in Hannover, Germany was the perfect location to intro-
duce four new models with
lift capacities spanning from
18 to 25 tonnes. The DCF180-
250 range promises cleaner
engines with better fuel effi-
ciency, a new hydraulic sys-
tem, an ergonomic cabin and
a state-of-the-art diagnos-
tic system – all lowering the
total cost of ownership.
Kalmar Autoshuttle™
The new Kalmar DCF220
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Mikael Mäkinen, Cargotec President and CEO
KAW: Why did Cargotec acquire Navis?MM: To maintain its strong position in the global market, Cargotec
saw the need to grow vertically, from equipment supplier to total
solution supplier.”
KAW: How will Cargotec benefit from the acquisition?MM: It is vital to understand customer needs in the whole value
chain in marine and inland terminals as well as to have the ability to
provide solutions for those needs. This acquisition combines Navis’
flexible and scalable TOS software with Cargotec’s leading cargo and
load handling equipment and services, allowing us to offer integrated
solutions and better deliver turnkey operations to customers.
KAW: How will customers and partners benefit?MM: Modern terminals require integrated solutions between termi-
nal operating system and equipment intelligence. With joint forces,
Cargotec and Navis will create more value for customers’ businesses
through improved terminal operations. No other equipment supplier
has joined forces with a TOS provider.
KAW: How will this affect the competitiveness of Cargotec?MM: Cargotec will become the market leading provider of trans-
portation and logistics solutions, further strengthening its ability to
provide total solutions for customers. Together, Cargotec and Navis
will be the leading terminal system integrator in the market.
Three Angles on the Navis acquisition
This year, Cargotec completed its acquisition of terminal operating system (TOS) provider Navis. Navis is a US-based software company that makes the leading TOS system, currently used by marine container terminals, distribution centres, and rail yards worldwide.
Three Angles
How does the acquisition of Navis affect Cargotec, Navis and their customers? Three leaders provide their views.
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Knud Vang Nielsen, Managing Director of Oslo Container Terminal AS
KAW: What do you expect from your suppliers?KVN: I have been following Cargotec for
many years. They have become a much larger,
broader supplier. Therefore I see the Navis
acquisition as a natural, advantageous step.
I’ve experienced the situation
where we had bought all the best
options from suppliers, but the
parts were not interacting as
expected. It was my problem to
get it all to work. As a customer, I
want to have a working solution.
The customer knows the desired
end result, but they don’t neces-
sarily want to know how to get
there.
KAW: What is your history in the maritime industry and how have you worked with
Cargotec in your career?KVN: I started in the Port of Aarhus in
Denmark, in 1980. Already when I arrived at
Aarhus, Cargotec was already supplying its
Kalmar equipment. They used Aarhus as a
test site. I was personally involved in a lot of
the testing and development. So I have had
a long and good relationship with Cargotec.
For a number of years I was working both in
Oslo and Aarhus, but now I am focusing just
on Oslo.
KAW: What is your target for the Oslo terminal?KVN: We are about to start a new develop-
ment project in Oslo together with the Port
Authority. There will be a lot of challenges to
be solved. Using an automated gate system
might be one of the things we consider here in
Oslo to improve efficiency. This is an exam-
ple of where Cargotec’s acquisition of Navis
might help.
KAW: Do you think this is going to be more common in terminals around the world, adapting to automation?KVN: Most definitely, but this is
a conservative industry. In some
regions, automation may not yet
make sense financially when per-
sonnel costs are still relatively low. In other
regions, automation is critical because adding
just one person to the workforce can be too
much.
KAW: What sort of integration oppor-tunities are there between Navis and Cargotec solutions? BW: Currently, many terminals are looking at
how they can reduce their costs and improve
operations with automated solutions. As we
look at the increased number of automated
terminals that our customers are planning
to build, there will be excellent opportuni-
ties between the Navis TOS and the different
types of automated equipment that Cargotec
makes and sells.
KAW: How can Navis bring Cargotec closer to customers? BW: Navis and Cargotec have many of the
same customers, but deal with different parts
of the customer’s organisation – it will be less
about Navis bringing Cargotec closer to cus-
tomers and more about coming together to
provide increased value to our joint custom-
ers from a complete business perspective.
KAW: What new capabilities does Navis bring to Cargotec customers and vice versa?BW: Navis will provide deep domain exper-
tise in optimising terminal operations with
software solutions, and Cargotec can help
Navis with their expertise in the design of
terminal equipment.
Bill Walsh, President and CEO, Navis
KAW: What does “terminal integra-tion” mean in practice?BW: Terminal integration means the ability
to take all the different systems, enabling
technologies and operational processes that
are involved in terminal operations, and make
them work together seamlessly in real-time.
This allows terminal operators to utilise the
data generated in these systems to coordinate
processes and optimise operations.
KAW: How does usage differ in each customer segment?BW: The Navis TOS has evolved into a sys-
tem that can be configured by the customer
directly, without incurring expensive custom-
isation costs. All customer segments use the
system to plan, schedule, control, visualise,
execute and optimise operations in large sup-
ply chain nodes. Yet each individual client can
alter the usage and behaviour of the system
in order to differentiate their business from
competitors.
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INNOVATION
The next generation is hereBuilding on old success – even redefining the things that made you successful in the first place – can be one of the most difficult things in life, and business. It is also the very thing that makes people and companies successful: The constant drive to get better.
Cargotec is on the verge of doing just that as Cargotec pre-
pares to launch its new ‘G’ generation of Kalmar counterbal-
ance equipment that builds on its past success, adding new
features and redesigns to make them even better.
“We are continuously working to improve the efficiency
and economy of our customers’ operations. The new G gen-
eration of Kalmar counterbalance equipment is the next step
in this process. We have enhanced the cost-efficiency, quality
and productivity of our counterbalance machines, resulting
in better performance and greater savings,” says Thomas
Malmborg, Vice President, Forklift Trucks.
“We recognise the fact that, for example, our previous
cabin was the best on the market, so our challenge was really
trying to beat ourselves,” he adds.
Signals from the market
The new generation is the fourth – “we started with ‘D’ once
upon a time” – in line, and according to Malmborg, one that
has been under development for about three years, and will
eventually cover all Kalmar forklifts, empty and loaded con-
tainer handlers, reachstackers, and logstackers.
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The DCG90-180 range of forklifts is the first to enter the new ‘G’ generation
of Kalmar counterbalance equipment.
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rested after their shift,” Malmborg says.
The cabin is a common denominator for all counterbal-
ance products that fall under the G generation, as is the new
electronic steering system, which will have the same look and
feel for all products.
“The red thread that connects everything is our new
human-machine interface (HMI), which
means that you’ll have the same interface,
regardless of which Kalmar vehicle you
sit in. The menu looks the same, and it
works in the same way,” says Malmborg.
“It’s simple, intuitive, and obvious
from the start. There are no complicated
buttons, and the intelligent system will
feed the driver exactly the information
that is needed at that moment.”
Something for everybody
At the same time, Malmborg is care-
ful to note that the new system will not
decrease the importance of drivers’ skills.
“The driver is still in control, and the
same common electrical control system will be used in all G
generation vehicles so the driver can easily switch from one to
another without having to re-learn the system,” he says.
Other new features include a new hydraulics system, which
is a load sensing system. The cooling fan is also hydraulically
driven and temperature controlled. As an option, the fan rota-
tion can be switched to blow out dust from the radiator.
The new G generation of Kalmar counterbalance equipment offers significant improvements in ergonomics and driver visibility. The new EGO cabin design is completely different, compared to the previous model.
Kalmar’s new counterbalance equipment enters a new era.
“The existing product was obvi-
ously the starting point for our
development work. Then we con-
ducted extensive market research,
discussed with our customers, and
gathered other information to make
sure we understood the development
needs,” Malmborg says.
“It’s not like we’ve been dreaming
all these new features up, but, instead,
we have clear signals from the mar-
ket,” he adds.
One of the most notable changes
between the previous generation and
the G generation is the most visible
one. The driver’s cabin has been rede-
signed to meet the drivers’ ergonom-
ics needs.
“The new cabin design is com-
pletely different from the previous
one, which was about ten years old.
There are huge improvements to ergo-
nomics and the visibility is better,” Malmborg says of the new
EGO cabin.
“The ergonomics has been in focus; we really wanted to
make it an enjoyable experience for the drivers. Everybody
wants to have a comfortable work place, and we wanted to
make sure that the people driving our forklifts can sit relaxed,
and feel good, when they’re at work. Actually, they should feel
The new EGO cabin.
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Fuel efficiency is improved, the engine’s noise levels reduced, and the emissions lowered.
Fuel efficiency has also been improved, the engine’s noise
levels have been reduced, and the emissions lowered.
“Everybody finds something to like in G generation. The
drivers will enjoy the new cabin and the control system, the
service people will like the accessibility, and management will
certainly be happy with the fuel efficiency and more produc-
tive employees,” says Malmborg.
Introducing the first
G-series Kalmar forklifts
The G generation will gradually take over from the previ-
ous generation, which has been available for almost a decade.
Many things have changed in those ten years, on both sup-
ply and demand sides of the equation. In part, technologi-
cal advances have made it possible for Cargotec to create new
solutions that weren’t possible during the development of the
F generation. On the other hand,
customers also have new demands.
“The world changes, and both
our suppliers and customers have
evolved. Their needs and abili-
ties have changed, and that puts
new demands in front of us. We’re
not making changes just to make
changes,” Malmborg says.
Even if customers have been
an integral part of the development work, giving their opin-
ions as input, their first chance to literally touch the first G
generation machine was in May at the CeMAT trade fair, the
biggest international fair for logistics professionals.
There in Hannover, Germany,
Cargotec unveiled its new
DCG90-180 range of Kalmar
forklifts. This new range of lift
trucks – with capacities between
9–18 tonnes – is the first of the
Kalmar G-series equipment to
be built boosting all of the new
generation’s features and advan-
tages.
The new vehicles endured rigorous field tests, and for the
last year, in the toughest conditions in Canada.
The launch of the G generation will be a gradual one, and
won’t cover all product categories at once. The plan is to
gradually introduce more and more Kalmar counterbalance
machines so to that the new G generation slowly begins to
take shape.
“We’ll have to work on the next step, always, continually.
The new cabin will probably last a good while, but we’ll have
to be sensitive to our customers’ needs, and get better all the
time,” says Malmborg.
“We’ll keep our eye on the competition, but at the same
time, we make our products for our customers, and we try to
do that work better than ever,” he concludes.
The new system will not decrease
the importance of drivers’ skills.
The driver is still in control.
GLOBAL CASE
Rebuilding FreeportA normal day at Freeport, on the island of Grand Bahama, turned into a disaster zone when a tornado tore through the area on 29 March 2010, causing severe damage to one of the world’s top 100 container terminals. Cargotec Services was called to help restore the port’s activities.
The tornado’s strength toppled
heavy equipment, severely damaging
port operations.
aftermath literally resembled a bomb site.
Crane 10 was completely wrecked and had
fallen into the water. Crane 9 and 8 had been
forced off their rails, and cranes 5, 6 and 7 also
suffered significantly. The wreckage resem-
bled a sea of twisted metal booms, broken
bogeys and damaged motors.
Other quayside equipment, including
straddle carriers and terminal tractors, were
also badly affected, and many containers were
scattered around the terminal area.
Knowing who to call
When all was said and done, Freeport’s man-
agement team faced the formidable task of
returning the terminal back to normal as
quickly as possible.
Charles Stewart, Engineering Manager at
Freeport, and Mike Murray, Head of Cranes
for the Hutchinson Group, had previous
experience working with Cargotec Services
after a hurricane damaged another port in the
area. So they knew who to call, and according
to Stewart: “We knew that Cargotec Services
was not only one of the few organisations
capable of handling this sort of damage, but
Operations were in full swing when without
warning an incoming tornado was sited at
11:40 am, and within minutes, it hit Freeport’s
quayside.
The immense force of this powerful storm
delivered severe consequences, including
extensive equipment damage. The tornado’s
sudden appearance meant that there was not
enough time to evacuate staff, and sadly, this
resulted in many injuries and the tragic death
of three employees.
Seven of Freeport’s 10 ship-to-shore (STS)
cranes were operational at the time of the
incident. The tornado’s wind strength was so
strong that these monster quay cranes were
pushed around like matchsticks, and the
Grand Bahama
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About the customer
Freeport Container Port Limited is owned and operated by Hutchison Port Holding (HPH) in partnership with Mediterranean shipping Company (MSC). The original company was established by HPH in conjunction with the Grand Bahamas Port Authority (GBPA). Freeport is a top 100 container port with a handling capacity of 1.5 million TEU per annum. It has nine STS cranes and 72 straddle carriers, of which 49 are Kalmar-branded machines.
Since the incident, Freeport has improved its safety procedures and introduced new warning systems in addition to implementing a separate weather monitoring system.
Charles Stewart, Engineering
Manager at Freeport.
they also had the expertise and resources
available to quickly respond in emergency
situations.”
That same evening, they called Ed
Johnston, VP of Regional Operations for
Cargotec Crane and Electrical Services.
Johnston, based in Charleston, South
Carolina, jumped straight on the plane and
was on-site by 10 am the next morning to
survey the damage. Johnston says, “Due to
the state of the port it was not easy to make
the assessment. It looked like a war zone with
cranes everywhere.”
However within five days, Johnston and
his colleagues had completed the initial
assessment. They deployed a team of 30 to 40
people, including surveyors, technical serv-
ices, geometric survey specialists, machinists,
and local labour, to initiate repairs and gen-
eral clean-up. Within two days the port had
returned to moving containers again, albeit
at 50 percent of its normal capacity and only
from the second berth.
Bringing the port back
Approximately two weeks after the tornado
touched down, Matt Mumley, Cargotec
Services Project Manager, and a team of
20 engineers began the work to rebuild
Freeport’s cranes.
A schedule was agreed to bring the port
back into full operation and as soon as pos-
sible. The initial priority was to repair any
surface damage to the quayside and put the
STS cranes back on their rails.
“This sort of project demands a lot of
planning and coordination, from suppliers of
components to specialised equipment, and
you need a solid, professional team for this
A team comes together to restore Freeport’s port operations in the Grand Bahamas.
Freeport, and we applaud how professional
the team responded. It was an extremely
difficult set of circumstances, but Cargotec
Services once again demonstrated its unique
capabilities in these particularly challenging
types of projects.”
kind of rebuilidng work,” Mumley explains.
Ed Johnston adds that the plan was based
around sending one crane per month back
into operation. “Our repair schedule included
non-destructive testing techniques followed
by retro-fit works to prove that each crane
could safely operate at full capacity. All turn-
key repairs were completed in April 2011,” he
adds.
As it happens, Crane 10 was partly in the
water and completely wrecked, so this was
subsequently scrapped. “To get as many
cranes into operation as quickly as possi-
ble, we improvised a lot in the field to make
cranes 5, 6 and 7 operational first. We then
cannibilised cranes 9 and 10 to make crane 8
operational, and later restored crane 9 back
into service. To all cranes, there was struc-
tural damage to the gantry, boom and also a
lot of mechanical damage to the motors and
bogeys,” says Mumley.
Stewart says Cargotec responded quickly
and efficiently. “We really appreciate the
skills of Ed, Matt and the rest of the Cargotec
Services team. The tornado had a devastating
effect on the people and businesses here at
15KALMAR AROUND THE WORLD
CUSTOMERS
TEXT Sarah Hudson TEXT Sarah Hudson
Modern container handling in Santos, BrazilFrom tall ships to high technology
PHO
TO S
anto
s B
rasi
l
Tecon Santos container terminal.
The port of Santos is the most active port in not only Brazil, but also the whole of South America – and it feels like it, too.
17KALMAR AROUND THE WORLD
Like any self-respecting Brazilian city, Santos
is famous for two things: coffee and football.
Strolling around the city, you certainly get
the feeling that neither of these is to be taken
lightly. In line with this philosophy, the city
boasts its own extravagantly marble-floored
Coffee Museum on the historical site which
was the official centre of coffee-pricing nego-
tiations until 1950, and a football memorial
– complete with five kilometres of waterfront
garden – dedicated to the city’s greatest play-
ers and Pelé’s famed Santos FC.
Yet in this age of advanced harbour side
technology, it is the port of Santos, which,
before even football and coffee, plays per-
haps the most crucial role in defining the
municipality that spans both the island of
São Vicente and the mainland. An important
centre of trade and commerce for over two
centuries, it is now a significant international
trading hub. The port of Santos is the most
active port in not only Brazil, but also the
whole of South America – and it feels like it,
too. Rubber-tyred gantry (RTG) cranes are
constantly on the move high above, load-
ing and unloading some of the more than 1.4
million TEUs handled at the port in the most
recent years.
A crucial trading gateway
Cutting-edge technology from Kalmar is
at the heart of this busy port’s daily opera-
tions, with cargo handled utilising technol-
ogy that also controls the daily entry and
exit of around 4,000 trucks. The port’s cli-
ents include Hamburg Süd, MSC, CSAV,
CMA-CGM and Evergreen – all companies
for whom rapid and efficient cargo transpor-
tation and storage options are an everyday
necessity. At Tecon Santos, the Guarujá City
container terminal site, Santos Brasil Com-
pany handles 51 percent of the cargo at the
Port of Santos, and 23 percent of all contain-
ers handled in Brazil.
The unique location of the city of Santos
has for centuries made it ideal for both
accessing the vast Atlantic Ocean and for
crossing into the populated interior of
South America. Against the backdrop of the
picturesque Serra do Mar mountain range,
which divides the coast from the inland
regions of São Paulo, Tecon Santos comprises
four berths along a continuous wharf that
stretches for almost a kilometre, two ware-
houses covering 12,000 sq m, a three-kilome-
tre rail spur, and a vehicle export terminal.
For hundreds of years, immigrants, port
workers and cargo alike have journeyed back
and forth along the 79-kilometre rail link to
Sao Paulo city. The scale of this hive of activ-
ity is such that only from the air can you get a
true picture of its impressive size.
Standing among imposing stacks of
Arriving by boat to the historic city of Santos, founded in the 1500s, you see the fantastic waterside views of a city that has been a most important coffee trading centre since the early 19th century. Today its port is the largest Kalmar customer in the country, the home of Tecon Santos – the largest container terminal in South America – and the epitome of a modern, bustling hub of commerce.
TEX
T Sa
rah
Hud
son
Kalmar E-One RTGs at Tecon Santos.
While activities at the terminal may
appear frantic, almost chaotic, in fact
every movement is carefully orchestrated
and monitored.
cargo containers, Caio Morel, Santos
Brasil’s Operations Director, tells us how
Kalmar equipment helps improve efficiency
at the terminal: “Kalmar Smartrail® GPS
positioning system allows extremely precise
cargo moving, as it is compatible with our
own system,” he explains, also pointing out
that Santos Brasil Company’s sophisticated
logistics planning system, Navis, performs
storage control functions and plans ship
container loading and unloading. The system
uses specific software to book terminal space
and also to plan the logistics of placing con-
tainers on the ships. This process means that
the terminal can hold many vessels worth of
cargo on site, stored according to scheduled
shipment, port of destination and weight
range.
According to Morel, the 29 Kalmar E-One
RTGs we see busily moving around us –
with 45 ton lifting capacity – are pur-
chased by means of a tender that
takes into account price, technol-
ogy and after-sales service.
Santos Brasil Company will
operate with one of the world’s
largest fleets of all-electric
Kalmar RTGs when it takes
delivery of a further 12 E-One2
cranes from Cargotec later
this year, bringing its total to
41 units. With the help of this
cutting-edge dockside technol-
ogy, Tecon Santos is aiming to
Caio Morel, Santos Brasil’s Operations Director, says that
cutting-edge technology is helping the port to increase capacity.
achieve an increase in its current capacity of
more than 140 percent.
As another RTG rolls by, Morel explains
the vital role that these lofty giants play at the
port: “Eighty percent of the work here is done
by RTGs; they are essential for the operation,
as they handle the cargo from the top and can
be used to handle smaller containers as well,
eliminating the limitations of the storage
area.”
Keeping cargo on the move
Until World War II, the main product
exported through Santos was the massive
amount of coffee produced by São Paulo state.
Today, a much more diverse range of cargo
passes through the port. While coffee and
sugar still represent 20 percent of the con-
tainerised cargo handled at the port of San-
tos, now the terminal also handles many of
Brazil’s other exports, including vehicle parts,
chemicals, machinery, orange juice, frozen
beef and soybeans. These products are scat-
tered across the terminal in the thousands of
large, colourful containers that we see being
manoeuvred around the port.
While activities at the terminal may
appear frantic, almost chaotic, in fact every
movement is carefully orchestrated and mon-
itored using the latest technology. Kalmar has
been a key player in modernising operations
at Tecon Santos and an active collaborator
in smoothing out transportation procedures
and processes for over a decade – 29 Kalmar
18 KALMAR AROUND THE WORLD
Facts on Brazil
Referred to as BRIC (Brazil, Russia, India and China), these four countries have the potential to become the world’s most dominant economies by 2050.
Provides around USD 1 billion per year in financial aid, local expertise and measures to improve governance in developing nations.
Five-time winners of the FIFA World Cup, and host of the 2014 tournament, which will be held in 12 cities around Brazil, including São Paulo and Rio.
Will host the Summer Olympics in August 2016.
Produces approximately one-third of the world’s coffee.
19KALMAR AROUND THE WORLD
RTGs perform 200 daily moves for handling
6,000 containers every day.
Santos Brasil Company has been a Kalmar
customer since 2000 and, according to Morel,
in terms of maintenance it’s a significant
advantage to have a standardised set of equip-
ment: “If the equipment is in need of mainte-
nance, all we need to do is cross the road from
Tecon Santos to Cargotec’s service facilities,
where we benefit from quick and personal-
ised after-sales service,” he explains.
With Kalmar equipment in place, the ter-
minal has seen a five-fold growth in its cargo-
handling volume. This has had a tangible
impact on productivity: when the units were
put into operation, the number of container
moves per hour was raised from 11 in 1997
to an average of 61 in 2011. This is particu-
larly vital to a terminal that has the capacity
to process well over two million TEUs per
year. Even in the midst of an economic crisis,
which slowed cargo flows in Latin America
and across the world, Tecon Santos still han-
dled a throughput of 1.4 million TEUs in 2010.
Doubtless, the recovery of world finances in
future years will see total throughput eclips-
ing its current record of 2.7 million TEUs in
2008.
Investing in the future
The importance of the smooth and effec-
tive functioning of the port to the state of
São Paulo, and to the Brazilian economy as
whole, has been well recognised by inves-
Brazil
Santos
Christ the Redeemer statue in Rio de Janeiro.
tors and the federal government alike. Santos
Brasil Company’s operations, including three
terminals employing more than 3,000 peo-
ple, are constantly being improved, with R$
1.3 billion (over EUR 560 million) of invest-
ment planned for 2011. The Port of Santos
area also receives federal government invest-
ment in projects such as the deepening of the
pier draft from 15 to 17 metres, at the cost of
R$ 196 million (almost EUR 86 million); the
port is also to receive an additional R$ 1.4 bil-
lion (around EUR 613 million) for improv-
ing waterway and land access infrastruc-
ture. Such funding injections are indicative of
the struggle to keep port infrastructure and
equipment up-to-date to cope with what can
at times be an overwhelming workload.
The rapid modernisation and expansion
of container handling in South America is
expressed in a microcosm at Santos. Sitting
by the harbour enjoying a cup of coffee, one
can watch hefty 45-tonne containers being
lifted from the gargantuan cargo vessels
that have replaced the elegant European
barques that once moored in the har-
bour of Santos. The benefits reaped by the
increased use of intelligent, locally main-
tained, and effective industrial technol-
ogy are helping to ensure that this historic
maritime gateway to Brazil will remain a
crucial international commercial hub well
into the future.
Global trends set the stage for Cargotec’s strategy
Mikael Mäkinen, President and CEO of
Cargotec, stresses the importance of keeping
in tune with the world and its changing envi-
ronment. As Mäkinen explains, every company
should appraise change regularly and make sure
they are following the direction that the world
is taking.
But when it comes to Mäkinen’s own ter-
ritory, the word follow is fast forgotten. In
Cargotec’s case, keeping up with the rest is never
enough. Cargotec has always taken pride in
being at least one step ahead of the rest, in tune
with the times and when deemed wise by the
people in charge on the first wave of renewal and
changing the rules.
This outlook has paid off. Cargotec is one of
the few companies that made it through the glo-
bal credit crunch nearly untarnished, especially
when compared to much of the competition.
“I think 2010 was a year when we stabilised
the course and development of our company.
Are we happy with our recent financial results?
Let’s say that we are happy with the develop-
ment of the results,” Mäkinen affirms.
Cargotec is currently working hard to incor-
porate its newly refined strategy. It is not a fully
new way of thinking or acting more of a nudge
to make sure Cargotec will be market leader
in years to come as well. The strategy is both
very clear and fuzzy at the same time, so that
Cargotec will not lose its ability to agilely change
when necessary, as Mäkinen emphasises.
During the strategy process, which was
wrapped up in autumn 2010, Cargotec’s experts
identified four major trends. The global trends
include the global economy’s shift towards the
east, urbanisation, the acceleration of techno-
logical change and the shortage or even lack
of critical raw materials. Cargotec responds to
these global trends by focusing on four areas:
customers, services, emerging markets and
internal clarity.
Mega trends unravelled
The first of the global trends derived from
Cargotec’s strategy work is Asia’s rise. A consid-
erable part of Cargotec’s clientele operates in
growing markets, Mäkinen points out.
Asia has become the hub of global produc-
tion, which has especially affected Cargotec’s
Terminal and Marine business. Most of Asia’s
production has traditionally been fed to
Western markets, but the East is rapidly learn-
ing to consume in abundance as well. Major
local economies are rising in Asia, with produc-
tion and consumption concentrated in the same
markets. As much as 37 percent of the world’s
container traffic can already be found within
Asia.
20 KALMAR AROUND THE WORLD
TEX
T Jo
anna
Sin
clai
r
STRATEGY
GLOBAL ECONOMIC SHIFT TO ASIA
GLOBAL MEGATRENDS 1/4
Intra-Asian freight already accounts for 37 percent of global container traffic.
37%
21KALMAR AROUND THE WORLD
“The world is changing, as
evidenced by the fact that intra-
Asian traffic, not intercontinental
freight traffic, now accounts for
the biggest container volumes,”
Mäkinen says.
Urbanisation is another
major trend affecting Cargotec’s
business. Global urbanisation is
accelerating, particularly in Asia
and other developing areas, such
as South and Central America
and Africa.
This trend has many outcomes that will
inevitably affect Cargotec’s business as urban
life requires unparalleled material flows
all the way from transporting foodstuff to
sophisticated waste handling solutions, which
is one of Cargotec’s key competence areas.
Urbanisation is occurring hand in hand with a
rapidly accelerating lack of raw materials, and
tightening environmental legislation.
Expert sources have estimated that the
next global crisis will not be about credit,
it will be about raw materials. The short-
age already has a huge impact, one which is
expected to increase despite new materials
and energy saving solutions that are being
brought to the market. Consumption levels
are simply rising so rapidly around the globe.
The lack of raw material clearly affects
load and cargo handling, where reliable alter-
native fuel solutions are much sought after.
Efforts to cut fuel consumption are also in
the making by reducing friction or combining
TECHNOLOGICAL CHANGE
GLOBAL MEGATRENDS 3/4
URBANISATION
GLOBAL MEGATRENDS 2/4
6 billionIt is estimated that over 6 billion people will live in cities by 2050.
components to improve the overall effi-
ciency ratio. Advances are being made in
terms of equipment as well: from Cargotec’s
perspective, one of the main objectives is
reducing the weight of equipment. This can
be achieved by, for example, developing the
characteristics of steel and using alternative
materials.
Finally, the fourth global trend is the
acceleration of technological change, namely
digitalisation. Foremost, digitalisation adds
safety to both Cargotec’s customers and
Cargotec’s personnel. Digitalisation is, for
instance, opening possibilities for a full range
of new safety features in cranes, as a height-
ened awareness of surroundings increases
the safety of the equipment operator, as well
as other people nearby. It is also the key to
neighbouring safety work, such as a research
project Cargotec is involved in where a
system is being developed to use sensors to
monitor the driver’s alertness.
All eyes on the customer
Cargotec’s four strategic focus areas, custom-
ers, services, emerging markets and inter-
nal clarity, all deal with the global trends and
make the most of them in business. In each of
the key focus areas, Cargotec is either already
working hard to achieve a new balance, or
has clear cut plans about when and where
changes will start taking place.
Internal clarity is a prerequisite for all of
the other focus areas to flourish. In services,
the refined strategy entails that a stronger
emphasis is put on developing services in line
with the customers’ value chain, and on seek-
ing growth when customers outsource their
service operations.
In terms of matching services with geo-
graphical presence, Cargotec is already unri-
valled. Yet much can be done to improve.
Mäkinen explains how today, instead
of individual products, customers increas-
ingly expect complete solutions that include
customised equipment, and service concepts
that cover their entire life cycle. Add on the
powerful consolidation trend and a clear pic-
ture is painted: one where, as Mäkinen points
out, Cargotec is in a unique position. Bigger
global players want partners who can match
their size and meet their needs. This is good
news for Cargotec and its service and distri-
bution network.
“The whole world is our market area. We
can serve our customers wherever we are
needed,” Mäkinen reminds.
In the upcoming years Cargotec is going to
Instead of individual products, customers increasingly expect complete solutions that include customised equipment, and service concepts that cover their entire life cycle.
Digitalisation is a key driver of technological change, as evidenced by the spread of smart solutions. In Cargotec’s sector, this means equipment that is better able to communicate with both the operator, and the operating environment.
22 KALMAR AROUND THE WORLD
LACK OF CRITICAL RAW MATERIALS
GLOBAL MEGATRENDS 4/4
1.35 trillionAs of 2010, the US government estimates that the world has proved oil reserves in the neighbour-hood of 1.35 trillion barrels.
strive to keep its current hold in established
markets such as Europe and North America
and work to take a stronger stance in China
and in the other BRIC countries: Brazil,
Russia and India.
Although Cargotec’s strategy underlines
the importance of emerging markets, services
and internal clarity, Mäkinen reminds that
the core of the strategy is the customer.
“We make constant efforts to better under-
stand our customers through their business
needs,” Mäkinen says.
Cargotec’s strategy is based on customer
insight while flexibly adapting to changes in
the world economy and Cargotec’s industry.
“Focusing on customers and customer
segments means that we are adapting our
offering from a customer point of view. We
will make decisions where to invest and
what to divest. We are going to invest in the
areas where we feel that we can be the world
market leader. To strengthen selected offer-
ing and segments is our ongoing journey,”
Mäkinen explains.
The Navis acquisition supports Cargotec’s
strategy to focus on customers and invest
in attractive customer segments. With this
acquisition, the company has taken the first
steps to develop its business according to cus-
tomer needs. By acquiring Navis, the leading
terminal operating system (TOS) provider,
Cargotec will further strengthen its ability to
provide total solutions for terminal custom-
ers.
The customer is at the heart of Cargotec’s
refined strategy and a genuine customer
perspective is key to everything the company
does. Cargotec’s future is not set in stone, but
one thing is certain: from a customer’s per-
spective, the years to come look more promis-
ing than ever. Cargotec is going to serve its
customers far better than competition can
even aspire to, grow faster than the market –
and keep cargo on the move.
The refined strategy keeps old promises
Cargotec’s customer promise ‘we keep cargo on the moveTM’ sounds simple enough, but when you take a look at the larger picture, it is anything but easy.
The promise drives business, guides behaviour – and is downright challenging to live by. It is difficult, because Cargotec never makes empty promises. Keeping cargo on the move requires genuinely understanding how customers’ businesses operate and fully appreciating all the nooks and crannies of their business environment.
Cargotec provides cargo handling solutions and services for on-road, industrial, harbour and marine cargo handling and offshore load handling. In practise, it means being on the cutting edge of technology whether the issue at hand is automated container handling or hydraulic hybrid drive terminal tractors. Cargotec needs to know how offshore support vessels operate day in and day out, how EU’s machinery directive sets safety standards on new levels and how this affects crane operation businesses. Whatever happens in the customers’ business environment, keeping cargo on the move means Cargotec needs to be on top of it.
Cargotec’s mission is to improve the efficiency of cargo flows. The company does this by helping customers’ operations run more efficiently: Cargotec delivers reliable equipment and services, maximises fleet and ship productivity, and can help in improving operations’ total performance with complete systems, concepts and design.
Cargotec´s goal to provide customer solutions in 2015 starts with a plan to focus globally on customers. In 2011, all eyes and ears are on the customer: listening, learning, and making sure Cargotec is up to speed when it comes to customer needs.
By acquiring Navis, the leading terminal operating system (TOS) provider, Cargotec will further strengthen its ability to provide total solutions for terminal customers.
23KALMAR AROUND THE WORLD
24 KALMAR AROUND THE WORLD
CUSTOMERS
SNP’s Kalmar Zero Emission™ cranes receive power through cable reel.
Vietnam
25KALMAR AROUND THE WORLD
Vietnamese port goes greener with Kalmar Zero Emission RTG™ cranes
TEXT Le Thu Huong
Under the blazing sun of Ho Chi Minh City,
the country’s biggest metropolitan area with
a population estimated at 10 million, it’s easy
to spot the Kalmar E-One2 Zero Emission
rubber-tyred gantry (RTG) cranes at work
at Tan Cang-Cat Lai terminal in District 2.
The fully electric cranes from Cargotec were
recently implemented to support Saigon
Newport’s (SNP) growth strategy as it aims to
embrace more environmental-friendly tech-
nology.
“The economic benefits are clear,” says
Le Tuan Anh, General Director of the SNP
Technical Department. “Where we were
operating with 3+1 wide cranes before, the 6+1
wide Kalmar cranes have helped us increase
our terminal capacity using the same opera-
tional area.”
Established in 1989, SNP handles about 80
percent of the Ho Chi Minh City area’s import
and export volume, and nearly half nation-
wide. The company surpassed its target in
2010 handling 2.8 million TEUs, surpassing
the 2.4 million TEUs handled
in 2009. SNP recorded VND
900 billion (EUR 29.6 million)
in revenue in 2010.
Shift to new technology
Starting in 2005, SNP made
the decision to move out of
central Ho Chi Minh City and began shift-
ing its main container handling operations
from Tan Cang in the Binh Thanh District to
“Kalmar Zero Emission RTG™ cranes generate no emissions, little noise and have low operating costs.”
Saigon Newport Company (SNP), Vietnam’s largest container terminal operator, continues to prefer Kalmar E-One RTG cranes. Operating with RTGs from Cargotec at its container terminals near Ho Chi Minh City, SNP recently took delivery of the region’s first Kalmar Zero Emission RTG™ cranes featuring the same proven reliability with even greater eco-benefits.
Cat Lai terminal in District 2. With an area
of 800,000 sq m, the Cat Lai terminal can
accommodate the industry’s most advanced
equipment.
Since 2007, SNP has gradually replaced
its smaller other-branded cranes with 6+1
wide and 1-over-5 high Kalmar E-One model
RTGs. Including its newly
installed six Kalmar Zero
Emission RTG™ cranes,
which are connected to
mains power through cable
reel, SNP deploys Kalmar
RTGs between its operations
at Tan Cang-Cat Lai and Tan
Cang-Cai Mep terminals.
SNP praises the Kalmar Zero Emission
RTG™ cranes for generating no emissions,
tn
Ho Chi Minh City
26 KALMAR AROUND THE WORLD
producing considerably less noise and hav-
ing low operating and maintenance costs.
Their energy cost savings are roughly 80
percent compared to diesel-powered RTGs.
The Kalmar RTG
cranes, which can
handle 40-tonne
loads, receive power
through cable reels
and regenerate energy
when lowering loads,
supplying the power
back to the network,
which means the operator only pays for the
actual energy it consumes. The equipment
can also help keep the terminal environment
cleaner by eliminating oil leakages.
“Kalmar cranes are receiving wider attention from other Vietnamese customers.”
Silent, clean efficiencyThe Port of Oslo was the first customer to invest in Kalmar Zero Emission RTG™ cranes back in 2002. Besides bringing the noise down, the cranes have helped reduce on-site carbon-dioxide emissions.
Air and noise emissions are often a significant problem at ports situated near
residential areas. As the amount of cargo around the globe shows no sign of
decreasing – quite the contrary – less polluting and more silent solutions for
cargo handling are warmly welcome.
Back in 2002, the time had come to act. Terminal capacity by way of reach-
stacker handling had reached its limit at the Port of Olso. What was needed was
a working option to solve both a capacity and noise problem at the Port, as the
TEXT Minna Takkunen
Kalmar equipment operating at Saigon Newport’s container terminal.
Oslo
Norway
27KALMAR AROUND THE WORLD
Operational cost savings
According to Tuan Anh, the
company saves an estimated
VND 1 billion (EUR 33,000)
annually per crane in opera-
tional costs compared with con-
ventional RTGs, which are diesel-powered,
considering that the domestic fuel cost is
three to fourth times higher than electricity.
Vu Kim Duan, Deputy Director of the SNP
Technical Department, explains the former
3+1 wide cranes are harder to operate and
maintain because they require hydropower
and are only suitable for smaller terminals.
“In the near future, we are looking at using
only Kalmar 6+1 cranes for our main con-
tainer operations, which will give a major
“We are looking at using only Kalmar cranes for our main container operations.”
sounds were too much for nearby residents.
In addition to finding cranes that would
bring the sound levels down and efficiency
up, a flexible alternative was on the wish list,
as the actual terminal area was at an inter-
mediate stage and planned to be moved in a
few years time. “RMGs were too permanent-
looking, while RTGs were more flexible and
could be moved around, if needed,” says
Per Halvorsen, Director of the Technical
Department at the Port of Oslo.
In the end, the Port decided to purchase
four Kalmar Zero Emission rubber-tyred
gantry (RTG) cranes, which were also some of
the widest RTGs Cargotec has ever built at 9+1
wide and one-over-four high. The investment
has paid itself back many times. Halvorsen
tells that besides producing less sound, the
safety aspects and high density stacking fea-
tures have worked very well in their opera-
tions.
Kalmar Zero Emission RTG™ cranes fea-
ture the industry’s longest maintenance inter-
val also helping to reduce costs.
Crane equipment has always been an envi-
ronmental issue at the port. “Diesel engines
are hazardous in residential areas, and all of
the port is located near residential areas. Our
RTGs are electrically driven receiving power
through cable reel supplied from the mains
supply,” explains Halvorsen.
In addition to being very cost effective
and eco-friendly – the cranes’ electricity is
supplied by a sustainable energy source: a
Norwegian waterfall.
As one of the environmental targets
of the Port of Oslo has been to lower the
amount of carbon-dioxide emissions by
10 percent between 2008 and 2012, Zero
Emission RTGs have been a complete solu-
tion in more than one respect.
Cargo up and emissions down
Halvorsen reveals that the amount of con-
tainers handled at the port is at an all-time
high. In 2010, containers comprised 24 per-
cent of the entire 5.4 million tons of cargo
that went through the port. Sixty per-
cent of that amount was import and 40
percent export. Products that get trans-
ferred through the port are mainly oil, salt,
cement, stone, timber, newsprint and grain.
A growing amount of the cargo arriving to
the Port of Oslo comes in containers handled
by cranes – 202,000 TEUs were handled in
2010 – and lift-on, lift-off container handling
is its fastest growing cargo function. The
Port plans to expand its container handling
capacity by 2015 with a new 400,000-TEU
terminal.
boast to our capacity to load
and unload vessels,” says
Duan.
Increased capacity
is needed
SNP’s growing fleet of environmentally
friendly Kalmar cranes has also gained the
interest of other Vietnamese port operators.
“Kalmar cranes are receiving wider attention
from other Vietnamese customers, but it
takes time for other smaller ports to build the
necessary infrastructure to handle modern
equipments,” Duan adds.
At SNP, Kalmar Zero Emission RTG™
cranes are also equipped with the latest
Bromma electric yard spreaders, which is the
leading crane spreader company that is also
a part of Cargotec Corporation. SNP techni-
cians say Bromma has improved the latest
generation of yard spreaders, with better
features that make them more reliable and
durable.
Vietnam’s sea transport industry is pre-
dicted to continue developing rapidly, as the
country takes a more positive position with
regards to international trade and export.
Major domestic ports are critically required
to increase their capacity. By boosting its
handling capacity with container handling
equipment from Cargotec, SNP hopes to reach
its target of moving 3 million TEUs in 2011. It
also plans to improve its electricity network to
accommodate more fully electric cranes.
Per Halvorsen, Director of the Technical Department at the Port of Oslo
Cargotec, in partnership with ST Kinetics and its subsidiary KDS, developed a parallel hydraulic hybrid drive system for the Kalmar Ottawa 4x2 terminal tractor. Paul Dries, Sew Chee Jhuen, President, ST Kinetics, and Mah Chi Jui, stand by the hybrid machine, which was displayed at KDS’ open house to celebrate its Canadian facility’s expansion.
28 KALMAR AROUND THE WORLD
PARTNERS
Hybrid development benefits from joint driving power
ST Kinetics is one of Asia’s leading defence
and specialty-vehicle companies. Their
large portfolio includes everything from
road construction vehicles and excavators
to dump trucks. They also offer design and
development, prototyping, systems inte-
gration, production, operations, and lifecy-
cle management.
KDS, in turn, specialises in control
engineering and hydraulics solutions, such
as drive trains based on mainly hydraulic
power-split transmissions. The subsidi-
ary has its foundation in a company whose
main aim was to manufacture forestry
machines that would be not only fuel-effi-
cient but also gentle to the environment.
“Our transmission systems have a large
influence on how the engine operates and
performs. All the
technologies we
use complement
engines and make
them more effi-
cient and cleaner,”
Given plans to expand to more commercial markets, Cargotec makes an ideal partner for KDS.
TEX
T M
inna
Tak
kune
n
With help from Singapore Technologies Kinetics (ST Kinetics) and its subsidiary, Kinetics Drive Solutions (KDS), an advanced transmission and vehicle drive systems company, Cargotec launched to market late last year the industry’s first hydraulic hybrid drive terminal tractor.
KDS’ facility in Vancouver includes 24,500 sq ft of manufacturing and testing space and 12,000 sq ft of office space. The company’s state-of-the-art dynamometer test equipment (left) allows KDS to critically evaluate its own product designs safely from the control room above (right).
29KALMAR AROUND THE WORLD
says Paul Dries, Director of Business
Development at KDS.
Mah Chi Jui, CEO of KDS, tells that the
company has expanded their testing facilities
space and is also planning to hire more peo-
ple. With plans now to expand more into the
commercial market, Cargotec makes an ideal
partner for KDS.
Designs for a greener future
Located in Vancouver, Canada, KDS is based
100 percent on export, with primary markets
currently in China, Singapore and the United
States. “Singapore is our biggest customer
right now,” Mah Chi Jui tells. Dries points out
that operating internationally has provided
the company with strong expertise in deal-
ing with differ-
ent business cli-
mates around
the world.
ST Kinetics
and KDS have,
together with
Cargotec, developed the first hydraulic hybrid
drive terminal tractor in the world. The
Kalmar hydraulic hybrid drive terminal trac-
tor is equipped with a parallel drive system
which transmits power from two distinct
sources: the primary diesel engine and the
secondary hydraulic motor. The two work
together to maximise fuel economy and sup-
port application constraints.
Innovations from customer needs
While the hydraulic hybrid drive termi-
nal tractor was originally developed for port
operations, the technology has large com-
mercial potential. Mah Chi Jui explains that
the process leading to the cutting-edge solu-
tion sprang from customer interest: concern
for the climbing price of fuel. As a result, the
main potential lies in areas where fuel price
is on the rise, such as North America, Europe
and certain parts of Asia.
The system suits heavy-duty applications,
such as work trucks and transit buses, and
there is also a lot of interest in the refuse mar-
ket, Dries explains.
With their vision of doing more com-
mercial business rather than consulting
work, KDS is looking into providing not only
the transmissions, but the whole vehicle,
developed individually based on a customer’s
needs. This could be done with the Cargotec
and KDS expertise brought together.
“For example, Cargotec could manufac-
ture a vehicle with KDS’ Infinitely Variable
Transmission and, if a customer wants the
option, they could also have the hydraulic
hybrid system in their application,” says
Dries.
• Cargotec has worked together with the global engineering company ST Kinetics and its subsidiary KDS since 2009 to produce innovative hybrid drive technology.
• The hybrid solution developed together for the Kalmar terminal tractor recovers braking energy and releases it during acceleration, which has the potential to reduce fuel consumption by up to 20 percent and emissions by approximately 15 percent.
• KDS is looking into applying the hybrid solution into wider commercial use, such as transit buses and other heavy-duty vehicles used in urban areas.
• The hydraulic hybrid Kalmar terminal tractor is a Pro Future™ solution, making it a part of Cargotec’s eco-friendly portfolio.
• KDS designs unique technologies for Infinitely Variable Transmission (IVT) systems that save fuel and the environment.
Green and clean on the go
The system suits heavy-duty applications, such as work trucks and transit buses.
30 KALMAR AROUND THE WORLD
On the shores of the Bay of Biscay, a strong-
hold of Spanish steel industry, logistics com-
pany Heavy Movement makes sure that raw
materials, finished products and everything
in between are kept on the move in a steel
mill area.
The steel mill Global Steel Wire, located
in the seaside town of Santander, has out-
sourced the logistics in the plant area. It is the
duty of Heavy Movement to guarantee that
the mill remains operative 365 days a year,
around the clock.
Kalmar is one of the brands that Heavy
Movement relies on as a collaborator in
Global Steel Wire’s operation. The heavy-
cargo logistics specialist deploys nine Kalmar
terminal tractors, four of the model TRX-242
and five of TT612d, at the Santander site.
They all ensure that tonnes of scrap metal,
billets, evacuated slag and finished wire rod
product find their way smoothly to where
they belong in the plant area.
In addition, Heavy Movement employs
a wide variety of attachments offered by
Cargotec, such as shovels, straight and round
tongs, and tailor-made solutions to move
steel rolls.
“We are a very innovative and creative
company. We always try to re-think the logis-
tic processes,” says Iván Bailach, Heavy
Movement’s Deputy Managing Director and
Head of Business Development.
Heavy Movement is a long-time user of
Cargotec’s Kalmar material handling equip-
ment. Earlier, Cargotec worked with Heavy
Movement’s parent company, José Llinas
Customised solutions facilitate workflow Spanish logistics company Heavy Movement and Cargotec developed new features to suit special logistic needs at a steel mill site in Santander, Spain.
CUSTOMERS
Spain
Santander
TEXT Johanna Kippo
“You can trust that if there is a problem, Kalmar will respond.”– Iván Bailach, Heavy Movement
Heavy Movement in nutshellHeavy Movement was founded in 2002. Up to 90 percent of its turnover is based on multi-year contracts at factory locations. Today it handles logistics operations of industry units in the steelworks group Celsa, both in Barcelona and Santander.
Heavy Movement also offers consultancy services on how to find the best solution to move containers and other heavy items.
The company employs 250 people, which includes on-site management at factories, warehouses, and sea terminals, and other personnel for loading steel products on train and metal recycling.
A Kalmar TT612d is loaded with scrap metal
in the plant area.
31KALMAR AROUND THE WORLD
Steel industry in SpainThe Spanish steel industry did not go untouched by the economic downturn. Although the domestic market continues to be weak, Spain’s steel industry has resumed its export activity with the expectation that this market will perform better. In 2010, Spanish crude steel production grew 13.7 percent from 2009 to 15.2 million tonnes.
The country’s steel industry is mainly located in the north in Biscayan, Cantabria, and Asturias regions, and in the south near Valencia.
Unique to the Spanish steel industry is that it continues to use electric arc furnaces. They are used for 78 percent of crude steel production while the world average is around 30 percent, a more popular model being blast furnace. Subsequently, the Spanish industry is less susceptible to changes in iron ore prices but more dependent on scrap metal and electricity prices.
32 KALMAR AROUND THE WORLD
like cords, cables, meshes, springs, pre- and
post-stressed concrete, cold-pressed nuts and
bolts or tyre reinforcing.
The steel company was aware that Heavy
Movement operated with productive Kalmar
workhorses backed by Cargotec’s reliable and
experienced service network.
“You can trust that if there is a problem,
Kalmar will respond,” Bailach says. “Whether
it is about further information or new equip-
ment, you will be sure that Cargotec will take
care that everything arrives to you in time.”
Modifications to increase efficiency
Heavy Movement purchased a number of
Kalmar terminal tractors both last year and
this year for Global Steel Wire’s unique oper-
ation. The company requested some addi-
tional features, which would increase the
machines productivity while also working as
e Hijos, which specialises in machine rental
and cargo handling at the Port of Barcelona.
A steel mill must keep running
A steel mill is a demanding work environ-
ment for cargo handling. It is fundamen-
tal that technical problems not paralyze the
plant.
At the Santander location, steel manu-
facturing is done by recycling scrap. Scrap
is smelted at a steel shop with an electric
furnace. The result is a semi-product steel
known as billet.
The solidified steel will be packed into
180x180 mm square billets. Each of them is
10 to 13 metres long and weighs 2.5 to 3.25
tonnes. Subsequently, these will be trans-
formed at a rolling mill into rod coils.
The customers of Global Steel Wire then
use those rod coils to manufacture products
Heavy Movement’s Iván Bailach and José Ramón Pelayo, are reponsible for the company’s operations in Santander, with a Kalmar TRX-242 terminal tractor.
A Kalmar terminal tractor offloads iron pallets in the plant area.
A Kalmar TRX-242 with a rolltrailer platform is used to load billets.
33KALMAR AROUND THE WORLD
a cost-effective solution.
The tractors had to have an extra hydrau-
lic function. Heavy Movement wanted the
tractors to be able to lift the haul and turn
it almost vertically. This would allow them
to dump the metal scrap into a big pile and
empty the haul completely and avoid the
time-consuming option of using a crane to
offload it. The purpose was to save time dur-
ing the operation, make it simpler and ulti-
mately increase productivity.
The solution that Heavy Movement and
Cargotec jointly designed was to add a more
powerful hydraulic pump. A larger hydraulic
tank with more capacity and hydraulic oil was
used with hydraulic hoses connecting it to the
vehicle. It enables the tractor to lift the haul
through a big lifting cylinder until reaching
nearly a vertical position. To operate this
function, new buttons were integrated on the
dash display.
Also on the company’s wish
list for its new Kalmar units
was low fuel consumption,
minimal maintenance costs
and extended guarantee terms.
Heavy Movement also proposed
a centralized greasing system
and requested that key indica-
tors be located on the outside
surface of the machine.
“We consider it more effi-
cient if you can find out what is
wrong by just having a look at the indicators
on the outside to check the levels. It is also
useful to have a unique spot, instead of several,
where to introduce grease.
“The changes would minimise the amount
and cost of maintenance work, which is very
important for us. That makes us more cost-
efficient,” Bailach explains.
Flexibility and openness to innovation
To Bailach’s satisfaction, the modifications did
not make the Cargotec deal more costly.
“The global price has to be competitive.
Here, the strategy of selling cars – where you
have a basic price and then add all the extras
on top of that – would not work,” he says.
“If you wish to win a bid, your providers
must work in an aligned way. They must be
flexible and open to new ideas and supply
innovative ways to improve existing products.
We want to offer a good product and adapt the
machines to the needs of a project
at hand.”
Product development
together with the customer
During the process, Bailach and
Managing Director Toni Llinás
from Heavy Movement visited
a Cargotec customer at a simi-
lar plant in Germany with Igna-
cio de Sebastián, Cargotec’s Ter-
minal Business Manager in Iberia.
Bailach observed how the same models were in
use in similar tasks.
de Sebastián says that this visit with the
customer to Germany helped seal the deal.
“The case of Heavy Movement can be
seen as an example of Cargotec’s core values.
Cargotec builds long-term customer rela-
tionships by delivering results and working
together with the client and internally as a
company. For a customer, it means reliability,
high uptime, competitiveness and profitabil-
ity,” explains de Sebastián.
He adds: “Heavy Movement brings out new
ideas and puts a lot of effort into its relation-
ship with Cargotec. Some of the modifications
are being done for the first time so it is good
for Cargotec as well.”
Also on the company’s wish list
for its new Kalmar units was low fuel
consumption, mini-mal maintenance
costs and extended guarantee terms.
Ignacio de Sebastián, Cargotec’s Terminal Business Manager in Iberia
A Kalmar terminal tractor takes billets to the rolling mill for their transformation.
Heavy Movement’s planning meeting, with Miguel Ángel Fernández, Iván Bailach, Miguel Ángel Olavarría and Ángel Álvarez.
34 KALMAR AROUND THE WORLD
Sustainability means a lot to me, both in my
personal life and at work. I am fortunate to
work for a company where I can implement
sustainable practices on a daily basis. But
what does this mean in practice?
I could start with the project I’m work-
ing on at the moment, which is the creation
and implementation of a water and energy
saving policy for our facility. The Stargard
factory’s daily routines include a waste policy
dubbed “3R”. We aim to reduce, recycle and
re-use waste produced during operation. We
also have implemented three ISO systems in
parallel (9001, 14001, OHSAS 19001). Our top
priority is the health and safety of our person-
nel and their well-being at work.
We also have a pellet heating system, recu-
peration and heat recovery systems and light
photocells. We monitor the production hall
constantly to minimise oil leakages, dust and
pollution emissions and waste production.
We also take great responsibility for our
location close to the Baltic Sea. Cargotec, as
a company, has been deeply involved in the
work to save the sea.
Our actions here in the Polish assem-
bly unit also go to other areas. We have an
Supporting sustainability in day-to-day workSustainability must be something that is done on an everyday basis, says Agnieszka Beyger, Facility Manager at Cargotec’s multi-assembly unit in Stargard Szczeciński, Poland. She gives us many concrete examples from her own life.
• Agnieszka Beyger works as a Facility Manager at Cargotec’s multi-assembly unit (MAU) in Poland.
• The company’s Stargard Szczecin ski location opened in September 2010.
• The 27,000 sq m factory has the same focus areas as all Cargotec MAUs this year: deliveries, quality and product cost.
• It employs almost 140 people.
• The new facility is a part of Cargotec’s global supply network and is ideally positioned close to customers.
• Supporting the production of a wide range of Cargotec equipment, the MAU boasts the latest state-of-the-art facilities for sustainable production technology, processes, and quality.
innovative new technology to clean our floors,
the so-called ‘HTC diamond pad method
without chemicals’.
I think that sustainable solutions improve
cost-efficiency as well as the environment.
They also benefit employees’ health and pro-
vide safety effectiveness for our customers’
operations.
Our environmental improvement pro-
grammes increase ecological awareness. We
do our best to design and develop ecological
products, production processes and operating
methods to reduce the impact of our assem-
bly processes.
The huge advantage we have is a con-
scious staff. They all know their responsibili-
ties towards sustainability and are willing to
minimise their impact on the environment.
At the beginning of our operation in
Stargard, we established an environmental
policy and environmental improvement
programmes.
It is very important to keep an appro-
priate balance between development and
a healthy environment. I also try to live by
doing minimal harm. I segregate waste at
home and work. I also print documents only
when needed and consider carefully when to
use water.
Sustainability helps us understand the
inter-connections between humanity, the
environment and the general economy. It
means operating without doing harm to
people and the environment. For me, small
issues matter.
“I think that sustainable solutions improve cost-efficiency as well as the environment. They also benefit employees’ health and provide safety effectiveness for our customers’ operations.”
Agnieszka Beyger
SUSTAINABILITY
35KALMAR AROUND THE WORLD
INDUSTRY INSIDER
world with my wife – and to enjoy
my grandkids.
“I hope Western Stevedoring
can continue to grow. We have a
couple of opportunities that will
further diversify the group and
provide sustainable and long-term
activity, and I wish them contin-
ued success. We were last of the
major stevedoring companies not
committed to container-only. Our breakbulk business took us into
multiple directions, as opposed to capital-intensive operations. We
have recommitted to our current model to achieve sustainability.
We are what we are and we need to be the best at what we do.”
Chapman started with Western Stevedoring in 1978 as Marketing
Manager and later moved over as Manager of the company’s
Lynnterm Terminal in 1979.
One of his proudest achievements, he says, was turning a failing
enterprise around and helping to make Western Stevedoring the
major break bulk handler on the West Coast of North America.
But what kept him for almost half a century in the business was its
variety. He explains:
“The interesting part of this industry in senior positions is the
diversity you face. You have unionised longshore labour and fore-
men in and out of your offices. And due to the international nature
of shipping you are exposed to people from all over the world from
major markets and wherever the major ocean carriers are domi-
ciled.
“And ports are typically under federal jurisdiction, so you are
involved with the port management and bureaucratic jurisdictions.
And there’s the high profile of the ports as they relate to federal
provincial, municipal governments and local communities. So you
have the political interface. And then you’re running a business.
“Our products are usually produced by fairly large corporations
selling to major corporations, so you are dealing with people run-
ning multi-million dollar companies handling millions of dollars
of product. You’re meeting all the professional people involved in
commerce: lawyers, accountants etc., so that diversity has been
a significant challenge. Plus, loading ships is dynamic and there’s
always a clock on a vessel’s time in port, so there’s also a certain
amount of adrenaline related to loading a ship in dock.
“I’ll miss the people, and the adrenaline. This industry is typi-
cally working against a time clock, and as issues arrive they usually
need to be resolved expeditiously, which is always exciting but not
always welcome.
“In retirement, that’s going to be a challenge to equal. I’m hop-
ing I can contribute to an organisation, perhaps at a board level,
but I’m not looking for another career.”
Tim was long-time head of the major BC Maritime Employers
Association and numerous other associations, and might be inter-
ested in joining some in retirement, but family will come first.
“I’ll be receptive to certain charity opportunities if they fit, but
also I intend to golf, ski and enjoy British Columbia and the rest of
The adrenaline rushAfter 44 years in the business, Tim Chapman stepped down in January as President of Western Stevedoring, based in Vancouver, Canada, with 20 years of experience at
the helm. Having witnessed many dramatic and dynamic changes in the business of international trade, shipping and the waterfront industry, he admitted
beforehand that “It won’t be easy to leave”.
TEX
T Jo
e W
hite
FACTS ON WESTERN STEVEDORING
Its Lynnterm Terminal at the Port of Vancouver is a consolidation centre for forest products, steel and breakbulk in the Pacific
Northwest. The company also handles general cargo and containers.
The company operates the largest pulp terminal in North America annually handling up to 2 million tonnes and utilising
eight warehouses totaling 81,750 sq m.
Late last year, Western Steveodoring received the first of 12 Kalmar DCE120-12 forklifts. It now has more than 80 forklifts from
Cargotec with capacities ranging from 35,000 to 92,000 lbs.
Tim Chapman
Vancouver, Canada