kalmar around the world, issue 1/2011

24

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™

14

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.

20 24

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

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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

4 KALMAR AROUND THE WORLD

www.cargotec.com

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?

5KALMAR AROUND THE WORLD

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.


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


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.

1


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.


3

2


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.


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.


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


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.


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


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.


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.


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%


“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


URBANISATION


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.


LACK OF CRITICAL RAW MATERIALS


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.



CUSTOMERS

SNP’s Kalmar Zero Emission™ cranes receive power through cable reel.

Vietnam


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


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


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.


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.

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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).


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.


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.


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.


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.


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.


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


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”.

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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

kalmar around the world, issue 1/2011

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