PCW-2019-Week-#19

WEEK #19 – 2019

In this Issue: East Africa | Tanzania | Malta >>>

PCW-Editorial
Week #19 | 9 May 2019

Dear Friends,

Bo H. Drewsen

It’s Thursday 9th May and we are here again. This week’s newsletter comes to you while I am in Antwerp attending the AntwerpXL breakbulk expo, so since I’m in the middle of it at the time of publishing, I will provide you all with a bit of info next week. Meeting face to face always will be better than just using emails.

What I would like to address today are a couple of items that have irritated me for some time now. Both relate to excessive pay, whether it be for executives who are unable to do that for which they were hired (but whom are still afforded a gigantic parachute when they get kicked out), or for politicians abusing the system that they helped create to vote for themselves. We just had an almost seven-day strike among the pilots of SAS (Scandinavian Airlines System) and, although they already are paid twice that of the average hospital nurse, that still isn’t enough for them.

The strike is now over, with the cost to the airline being perhaps USD60,000,000, all told. Airline pilots, of course, have huge responsibilities and should be handsomely rewarded, but being greedy without any thought for the current market situations for both the airline and other workers (train drivers, sea captains etc) seems unfair, at least to me. The pilots certainly didn’t get a note of sympathy from the general public.

We have the EU parliament election coming up in about a month’s time. Some 754 delegates are to be voted in and if you’ve got a minute, spend it reading this BBC report on the remunerations that are currently in force. You’ll surely conclude that you’d better cast your vote correctly. You can read that here. Add this to the usual EU travel circus once a month between Brussels and Strasbourg that costs the citizens of Europe about 150 million euros a year. Read about that here if you like. Besides the cost of it all, what about the hype from politicians about being the ‘greenest’? How does 150 trucks going between from Strasbourg and Brussels every month sound to you from an environmental perspective? For starters, MEP delegates should do something about this. That would show the public something!

Gordon Gekko’s statement in the 1984 movie Wall Street, that “greed works” shows an attitude that is firmly back and has been for a few years. Inequality is growing and I believe we will be facing more yellow vests in the future. The gap between the average worker and the high-flying politicians full of lofty goals and TV sound bites is becoming insurmountable.

Business this week should remain interesting, considering the interviews we have in store for you. We start off talking to Big Blue about their services into East Africa, an area that is developing rapidly, especially around the Horn of Africa. Next, we proceed to another East African state famous for natural scenery. The country we’re visiting is Tanzania, and we interview a local freight forwarder in Dar Es Salaam. On the way back to Europe with Emirates via Dubai, we stop over on the island of Malta and talk to a local freight forwarder with strong links in shipping on the very well-located island in the Mediterranean. As usual, we’ve got sector news, shipping news and Wise Words and, as always, we wish you an excellent weekend ahead.

Until next time, I remain,

Yours sincerely,
Bo H. Drewsen
bo.drewsen@projectcargo-weekly.com

Samskip
PCW-Interviews

Maersk: on Special Cargo into East Africa

Maersk

Interview with

Mr. Esben Flinker Noergaard
Vertical Lead, Special Cargo

Maersk is well known globally, so I’d like to focus on a certain area, i.e. your services into the East Africa, specifically the Horn of Africa. With a focus on Djibouti and Ethiopia, can you enlighten our readers a little about your services from China, Southeast Asia and Europe?

To Djibouti, we have weekly services from both China and South East Asia, as well as from Europe. From northern Europe and the Mediterranean, your cargo reaches its destination with only one transshipment (Salalah or Algeciras) and transit times are roughly between fifteen and twenty-five days.

Cargo from Southeast Asia takes around twenty days to reach Djibouti with one transshipment (Jebel Ali or Salalah). From China it takes slightly longer (about thirty days).

As always, there are many possible port combinations and our global network with weekly sailings allows us to serve our customers from many different origin ports.

CMTL Group – Dar Es Salaam, Tanzania

Carmelo Caruana

Interview with

Ms. Memory Mavunda
Chief Operations Officer

How is the relationship currently between Tanzania and China? I recall from the past that the Chinese built the Chinese/Tanzanian railway, among others. Are they still very active in your country with investments etc

Yes, the railway is still operational, however we haven’t been able to use it as most of our clients prefer road transportation, as they are usually working to deadlines.

I believe Tanzania is open for business and organisations from around the world do come for investment. As a company, we are members of logistics networks such as CLC Projects of course, WCA, X2, Cargo Connections and IAM. Through these, we do meet a lot of Chinese agents who have projects in Tanzania and East Africa in general, which I believe means one can conclude that the Chinese are quite active in the country.

Carmelo Caruana – Malta

Carmelo Caruana

Interview with

Mr. Darin Zahra
Senior Agency Manager

First, Darin, can you please tell us about the history of Carmelo Caruana? I believe it’s a group of companies. Is that the case?

Carmelo Caruana Company Ltd is part of a diversified group called Hili Ventures. The group is steered from its headquarters in Malta and employs over 9,000 people in ten countries across Europe and North Africa. Hili Ventures’ commercial activities include logistics, technology, engineering, property, and leasing. One of its major businesses is as a Developmental Licencee for McDonald’s in six European countries and it currently operates 148 restaurants. It also owns Apple Premium Reseller chains in Poland and Hungary which are branded iSpot and iCentre.

The company’s origins date back to 1923. The late Carmelo Caruana founded it, henceforth the name. The company initially started trading commodities from which ship brokerage, ship chartering and ship agency were developed. The founder continued to lead and develop the business until the 1970s. By then, Carmelo Caruana’s nephews, members of the Hili family, joined the company and have raised it from a pioneering family run business into an established leader in the Mediterranean at the helm of the shipping industry.

ASEAN
PCW-Shipping-News

BBC Chartering appoints Ulrich Ulrichs as CCO

BBC Chartering, the market-leading operator of multipurpose and heavy lift vessels, announces the appointment of Ulrich Ulrichs as Chief Commercial Officer, effective May 2, 2019.

Ulrichs will head the group’s global commercial business development activities, complementing the existing management team. As part of the group’s future succession planning, Ulrichs is supposed to assume the role of CEO after a transition period.

Ulrichs is an experienced industry leader with a demonstrated history in international shipping and the proven ability in managing and developing family-owned shipping businesses. Within his 20 year-long tenure in shipping, Ulrichs served AAL and Rickmers in various management positions, and last in the capacity of CEO of Rickmers-Line.

Ukrainian ballast water regulations amendments

Editor’s Note:
Interlegal in Ukraine are generally on top of things in the Black Sea Region. So, if you face problems or need clarification on the sometimes murky and confusing rules in some of the countries bordering the Black Sea, feel free to contact Interlegal directly. Here is their latest update, this time on Ukrainian ballast water regulations.

On April 27, 2019, the Resolution of the Cabinet of Ministers of Ukraine “On Certain Issues of Deregulation of Economic Activity” dated March 27, 2019, No. 367 was officially published.

The Resolution suspended the effect of the provisions, which provided for the inspection of bilge, sewage and ballast water (except for isolated ballast), and amended a number of regulatory acts, which regulated the issue of state supervision (control) over ballast water.

China and Nepal sign off on ports access deal

Editor’s Note:
China continues its strategy on the belt & road by developing and signing more and more port access, if not outright ownership or control deals.

China and Nepal have signed a deal sealing a 2016 agreement to grant the landlocked Himalayan country access to Chinese seaports and land facilities for trade.

In Beijing on Monday, Nepalese President Bidya Devi Bhandari and Chinese President Xi Jinping witnessed the signing of a protocol to allow Nepal access to seaports at Tianjin, Shenzhen, Lianyungang and Zhanjiang and road and rail facilities at Lanzhou, Lhasa and Shigatse for third-country import, Nepal’s Kathmandu Post reported on Tuesday.

How China is looking beyond borders

Editor’s Note:
Here is a comprehensive overview of the idea behind China’s ‘Belt and Road Initiative’, describing well what’s in store. China at least has some ideas on how to move forward, something from which our own European politicians could learn quite a lot.

The Belt and Road Initiative was announced by the Chinese government in 2013 as a global trade strategy based on the ancient Silk Road trading route.

It aims to develop a new Silk Road economic belt and 21st century maritime Silk Road by promoting economic cooperation across Asia, Africa and Europe. The initiative combines new and older projects and includes improved soft and hard infrastructure, and even cultural ties.

The new Ceva’s performance is ‘on target’ as CMA CGM takes full control

Editor’s Note:
With Mr. Nicolas Sartini at the helm, we at PCW believe that CMA CGM couldn’t have chosen a better man to turn CEVA into a force to be reckoned with in future, even in the field of project cargo related services. Time, of course, will tell in the end.

Following yesterday’s AGM, Ceva announced management changes that will see chief executive Xaiver Urabin, who has turned around the business, become executive advisor to the new chairman, CMA CGM’s Rodolphe Saadé. 

Ceva’s new CEO will be group chief operating officer Nicolas Sartini, while Apollo-appointed Marvin Schlanger, who had a brief period as chief executive and chairman of Ceva, has not been re-elected to the board, marking the firm’s final move from its uncomfortable private equity-owned past.

CakeBoxx Technologies Launches ‘CoilBoxx’ Container for Steel and Aluminum Coil Shippers

PCW-Sector-News

Swisslog wins major order from IKEA Supply Malaysia

The Swiss logistics specialist Swisslog, a KUKA subsidiary, has received a major order from IKEA Supply (Malaysia) Sdn Bhd with a value of approximately forty-three Million Euro.

The project comprises of 215,000 pallet locations of clad-rack, twenty-one warehouse pallet stacker cranes Vectura, the pallet conveyor system ProMove, the electric Monorail System and the core of the system, the Swisslog software SynQ.

Metso to deliver comminution and material handling equipment for Codelco El Teniente expansion

Metso has been awarded with an order to supply crushing and material handling equipment for the first stage of Codelco‘s El Teniente copper mine expansion project located in Cachapoal province. The order was booked in Metso’s first-quarter 2019 orders received.

Metso’s delivery will include primary gyratory crushing equipment with apron feeders and conveyer belts as well as related services. Most of the equipment deliveries to El Teniente are scheduled for 2021, while services will be carried out between 2022 and 2023.

Estonian Leedo planning to open second wooden house factory in China

Saaremaa Houses, a subsidiary of the company Saare Erek belonging to Saaremaa-based businessman Vjatseslav Leedo, is planning to open a second plant for the manufacture of wooden houses in China.

The company is already working on a plan to have a second plant built in China that would be somewhat smaller than the existing manufacturing unit built last year. The second plant would be located 1,000 kilometers from the existing plant in Jingmen, in the very heart of China.

Georgia-Pacific Investing $120 Million in New Tissue Machine at Naheola Mill in Alabama

Georgia-Pacific’s Naheola, Alabama, mill is set to receive an investment of more than $120 million for a new tissue machine and roll storage building to support the company’s retail bath tissue business.

While the new tissue machine will replace two older machines, it will increase capacity and support new tissue converting lines that are currently being started up at the mill. These latest investments continue the modernization of the Naheola mill, which includes ongoing construction of a new biomass boiler and woodyard.

EVO
Featured-Port

Fremantle Port – Western Australia

Editor’s Note:
I shall be arriving myself into Fremantle, Western Australia around the 8th of July as a passenger onboard CMA CGM Chopin. Looking forward to it and whilst I am waiting in anticipation why not share this video with you depicting the port of Fremantle, the main gateway to WA.

Fremantle Port
PCW-Featured-Video

Editor’s Note:
Having been part of the founding of Martin Bencher Scandinavia in 1997 it is a pleasure always to see that the company continiously is developing their capabilities in moving project cargoes not only by sea but also increasingly to inland locations. Here one example of valuable engines from Finland to factory floor in the US.

PCW-Featured-Photo

“CHIPOLBROK SUN” voy. 78 – View from a bridge

Editor’s Note:
A beautiful view here from the bridge onboard mv Chipolbrok Sun a breakbulk liner vessel operating between Europe and China.

Panama Canal – Miraflores locks

Editor’s Note:
3 vessels at various levels seen here at the Panama Canal. Very impressive indeed and shows the difference in water levels between the locks.

PCW-Wise-Words
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