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June 5 1995 Vo1.40 No.

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June 51995Vo1.40 No.

The main passenger terminal in Lisbon (Roeha do Conde de Obidos)

AUTHORITY OF THE PORT OF LISBON

Rua da Junqueira, 94 - 1349 Lisboa CodexTel.:3611024-Fax:3611019

A more rational use of the existing equip­

ment and certain building, to say nothing of

improving the road and rail approaches to the

Port of Lisbon (which are expected to cost

some Esc.: 15 000 000 000$00) will make the

port more attractive commercially, thus

paving the way for additional recourse to its

services and, consequently, the offer of more

competitive charges for international

sea-going traffic.

A new passenger terminal is due to operate

throughout 1995 at Santa Apol6nia facilities,

while the existing Santa Apol6nia Container

Terminal (TCSA) is to 18 ha (app.) with a

1,300 m long wharf and draught of 8,5 m (app.)

We are adapting an existing warehouse at

Jardim do Tabaco to become the third

passenger terminal in Lisbon, besides Rocha

and Alcantara.

Rocha is the existing main terminal,

Aldintara has mixed functions and is used

solely when Rocha is fully occupied and there

are extra vessels in the port or if some vessels

have a deeper draught.

Jardim do Tabaco will provide a new terminal,

10 minutes away from the airport and in the

city center, in the vicinity of the most typical

quarter in town - Alfama - which was a former

Moorish area, near Lisbon's castle.

Third passenger terminal will be here, just in the City Center

IMPROVEMENT IN THE COMPETITIVITYAND EFFICIENCY 0F THEPORT OF LISBON

Ports & HarborsJune, 1995VoI. 40No. 5

Port arbors Published byThe IatematioDaI AssociatioD.ofPorts aDd HarborsNGO Consultative Status, United Nations(ECOSOC, UNCTAD; IMO, CCC, UNEP)Secretary General:Hiroshi KusakaHead OfJice:Kotohira-Kaikan Bldg., 2-8, Toranomon1-chome, Minato-ku, Tokyo 105, JapanTel: 81-3-3591-4261FaX: 81-3-3580-0364Telex: 22225t6IAPH JCable: "IAPHCENTRAL TOKYO"

IAPHOfficersPresident:

Carmen LunettaPort Director,·Port of MiamiU.SA.

First Vice-President:Robert CooperChief ExecutivePorts of Auckland Ltd.New Zealand

SecoDd Vice-President:Jean SmaggheInspector GeneralMinistry of Equipment,Transport and Tourism,FranceExecutive Vice-President,International Affairs ofAssociation of FrenchPorts (UPACCIM)

Third Vice-President:Oominic TaddeoPresident & Chief Executive OfficerPort of MontrealCanada

CoDfereace Vice-Presidents:Mic R. OinsmoreExecutive DirectorPort of SeattleU.SA.

John J. TerpstraExecutive DirectorPort of TacomaU.SA.

ContentsIAPH ANNOUNCEMENTS & NEWS

Board to Appoint Nominating Committee Members. Thailand RetractsCandidacy for Host of 1999 Meeting 3

IAPH Information Technology Award 1995 .4The IPD Fund Contribution Report 6Mr. Kondoh Represents IAPH at WCO Regional Meeting. Membership

Notes. IAPH African/European Members Meet in Paris 7OPEN FORUM

Special Report on Shipping Firms' Prospects ." 10INTERNATIONAL MARITIME INFORMATIONWORLD PORT NEWS

Anti-Drugs Alliance Between HMC&E and BPA • Regional Seminar onDrug Enforcement 20

International Standards Help Transport People, Goods • MarineIndustry '95 in Tianjin Sports Center • Electronic Commerce:A Giant Step Forward 22

Seaport Development Conference in London. New Publication 23The AmericasNorth Fraser Policy for Safe Transport of Goods 24Japan Remains Leading Market for US Exports,. Long Beach

No. 1 North America Container Port. Errol Bush ElectedChairman of AAPA 25

Home Depot's New Facility in Savannah. Louisiana, Panama Work onLong-range Plans. Port of Redwood City: Tonnage onRecord Pace 26

Africa/EuropeDirect Train Service Between Lille and Le Havre • Biggest Containership

Calls in at Le Havre. New Loading/Unloading System atGoteborg 27

World's Longest Quay Getting Even Longer. Dublin: Irish Record forFreight Throughput • KPA Signs Cooperation Pact With Hamburg ...28

New UK Independent Port Association Launched. Largest-everS. African Cargo: Immingham • Felixstowe: £3.5 MillionSystems Contract 29

PLA Head Re-affirms Commitment to Future 30London's Position as UK's Largest Port Intact 31Asia/OceaniaPort of Quingdao: Great Containerization Efforts. .. 31Kawasaki Contributing to Met Area Distribution • World Class Cement

Terminal at Jurong • Hong Kong Remains Busiest Container Port• Hong Kong: Anchorages, Fairways Rearranged 32

Yokohama: Its Diverse Activities and Vision 33Yokohama to Kobe: Requital After 72 Years .36

The Port ofNagoya'sMeiko West BridgeMain Span: 405mHeight: 38m

isfor Convenience.

one

1801

"$~'- laPORTOfNAGO'lA

NAGOYA PORT AUTHORITY8-21 Irifune 1-chome Minato-ku Nagoya 455 JAPAN

Tel: 81-52-654-7840 Fax:81-52-654-7995

IAPI1 ArlrlOUrlCEMErlTSArlDrlE~VS

Board to AppointNominatingComm. Members

In accordance with the requirements of the By-Laws, five com­mittees are to be formed for each conference of our Association.Of the five conference committees, the members of theNominating Committee (which will prepare the nominations ofthe offices of President, First Vice-President, Second Vice­President and Third Vice-President for the next two-year term,and will present them to the Board) are to be appointed by theBoard, while those of the other four committees - the Credentials,Budget, Resolutions and Bills and Honorary MembershipCommittees - are to be appointed by the President from amongthe Association's eligible members whose registrations have beenconfirmed.

The Secretary General, upon consultation with the President,has prepared a list of the proposed Nominating Committee mem­bers and submitted it to the Board of Directors for their voting bycorrespondnce, setting the voting date for May 27, 1995.Furthermore, the memberhip of the other committees is to beappointed by President Lunetta prior to the June Conference. Theproposed membership of the Nominating Committee submittedfor Board's voting was as follows:

Proposed Membership of theNominating Committee

(The meeting is scheduled for 1700-1730, Saturday,June 10, 1995)

African/European Region:PJ. Keenan, Cork Harbour Commissioners, IrelandlM. Moulod, Port of Abidjan, Cote d'lvoireA. Graillot, Port of Le Havre, France

American RegionD.F. Bellefontaine, Port of Halifax; CanadaC. 1 Lunetta, Port of Miami, U.S.A. (as Chairman)C. M. Rowland, Canaveral Port Authority, U.S.A.

Asian Region:John Hayes, Maritime Services Board of New South Wales(Sydney), AustraliaH. Toshima, Ministry of Transport, JapanGoon Kok Loon, Port of Singapore Authority, Singapore

Thailand RetractsCandidacy for HostOf 1999 Meeting

The Secretary General has recently received a letter dated April24, 1995 from the Director General of the Port Authority ofThailand (PAT), confirming that the PAT has decided to with­draw its candidacy for the host of the 21 st IAPH Conference to beheld in the Asian Region in 1999. The PAT Director General Mr.Sunananta says, "We would not be in a situation to adequatelypresent the case for Thailand to host the 21 st World PortsConference in 1999 and have therefore decided not to proceedwith our candidacy. He further comments, "We believe that, inthe absence of Thailand, the three other candidate ports of Klang,Osaka and Yokohama can provide very acceptable venues for theConference which will illustrate the dynamic growth of the Asianregion."

In closing his letter, Mr. Sunananta says, "I regret having to takethis decision but you may rest assured the Port Authority ofThailand's representatives will be attending the 19th IAPHConference in Seattle. We will also be pleased to continue to sup­port IAPH activities in the future."

Under the circumstances, the candidates for the host of the 21stIAPH Conference (as of April 26, 1995) are: Port of Osaka(Japan), Port Klang (Malaysis) and Port of Yokohama(Japan), asa result of the withdrawals of Kobe (in January 1995) and now thePort of Thailand (in April 1995).

IAPH REGISTRATION AS OF MAY 18, 1995TOTAL DELEGATES REGISTERED: 434TOTAL ACZCOMPANYING GUESTS REGISTERED: 170TOTAL NUMBER OF REGISTRANTS: 604

CONFERENCE HOTELThe Westin Hotel, Seattle: The Front Door To City. Seattle's grandentrance to the city's most inviting neighborhood, located in the centerof shopping and popular attractions. The Westin has panoramic viewsand deluxe amenities including a pool, spa, fitness center & 24-hourroom service. For dining, choose from the elegance of The Palm Court,NIKKO Japanese restaurant or Market Cafe. The Westin Hotel,Seattle. 1900 Fifth Avenue, Seattle, Wash. 98101. U.SATe/:(206)728-1000 Fax:(206)728·2259

PORTS AND HARBORS June, 1995 3

VIET PORTEX '95The 1st International· Exhibition for Portand Waterway Construction, ShipbuildingIndustr)', Offshore Technology and Transport

November 21-24, 1995

IAPH InfonnationTechnology Award 1995

To the call for papers for the IAPH Information TechnologyAward Scheme 1995, which was established last year at the initia­tive of the IAPH Trade Facilitation Committee chaired by Mr.David Jeffery (Port of London Authority) to recognize the out­standing application of information techonology in a port, by theclosing date set at 4 pm, Japan time, April 21, 1995, a total offour papers had been received from the following organizations.

List of Entrants to IAPH InformationTechnology Award 1995

1. Sundsvalls Hamn ABBox 805S-851 23 SundsvallSwedenFax: +4660 193507Attn: Mr. Owe Linton, President

Ho CHI MINH CITY, Vietnam

--------------------------------------------~

If you want to be kept posted right from the start aboutVIET PORTEX '95, just return this coupon. We will send youall the important information free of charge.

YES,I'd like to be kept up-ta-date on VIET PORTEX '95 4. Nagoya·Port Authority

8-21 Irifune l-chomeMinato-ku, Nagoya 455JapanAttn: Ms. Ooharu, Port Promotion

2. Empresa Nacional de Puertos S.A.Av. Guardia Chalaca SINCallao, PeruFax: (511) 4658158Attn: Mr. Juan R. Atkins

3. Puerto de SantanderCarlos Haya, 2339071 SantanderSpainFax: (42) 311312Attn: Mr. Ignacio Merino, Logistics Manager

visitor 0

First name

I am exhibitor 0

Surname

Company

The entry papers are being reviewed and screened by theSelection Committee, which is composed of the following indi­viduals:

Adress

Country

VIET PORTEX '95Project Management

Hamburg Messe und Congress GmbHJungiusstraBe 13· D-20355 Hamburg

Federal Republic of GermanyTel.: +49 40/35 69 - 21 90/92

Fax: +49 40/35 69 - 21 87 . Tx: 21 2609 messe

David Jeffery, Chairman of the IAPH Trade FacilitationCommittee (London)John Hirst, Executive Director, The Association ofAustralian Ports and Marine Authorities, a member of the IAPHTrade Facilitation CommitteeUdo Mehlberg, Director of Technology & Research, Port ofTacoma, representing the host ports for the 19th World PortsConference of IAPHRinnosuke Kondoh, Deputy Secretargy General, representing theIAPH Head Office

The results of the Selection Committee's deliberations willbe announced by May 26, 1995. The presentation of the awardsto the successful applicants will be made during Working SessionNo.6, which is scheduled for the morning of Friday, June 16, .1995 dealing with Technical Committee Activities in the ''TradeAffairs" Group.

4 PORTS AND HARBORS June, 1995

TRADE OLD ROUTES FOR THE NEW WAY TO GO - POIn OF MIAMI.More and more shippers wqrldwide now recognizePort of Miami's unique adv~tages:

A ~trategic location as thenaturaI hub for trade betweenNorthiAmerica, Latin Americaand the Caribbean.

Th~ most service to and ;from Latin America and the~aribbean, with steadily ;growing traffic to and from ~urope.

Quick distribution of spipments from the FarEast and Europe throughOllt the Southeastern D.S.,with rapid "in transit" delivery to Latin Americaand the Caribbean.

The first port with complete capabilities to serve

. •...~

Panamax vessels once tley transit the Panama Canal.Computerized tern}inal operating systems to

provide real time cargo status, automated gates,bookings and release~ fully integrated with D.S.Customs and other fed$'al regulatory bodies.

Cohesive, ongoing~evelopment that recentlyadded 80 acres of spac~, 3 new RoRo berths, 1,000feet of additional container berth, and 4 moregantry container cranes~

For information on ~e world's new "Way To Go':write Port of Miami, (~015 North America Way,Miami, FL 33132, or:l .~call (305) 371-7678;.;1 n' PORTofFax (305) 347-4843.rl MIAMII PORT OF THE AMERICAS

I

The IPD Fund: Contribution Report

Contributions to The Special FundSince June 1992

(As of May 10, 1995)

100

300180200250500

570243500

150500

1,000860274

3,185

367200

1,000100500518

3,564250100

1001,000

500254

1,90550032

US$54,159

Deparment of Transport South Australia,Australia

Marine Department, Hong KongMaritime Services Board of New South Wales,

AustraliaMauritius Marine Authority, MauritiusMelbourne Authority, Port of, AustraliaMiri Port Authority, MalaysiaMontreal, Port of, CanadaNagoya Container Berth Co., Ltd., JapanNagoya Port Authority, JapanNanaimo Harbour Commission, CanadaNapier, Port of, Limited, New ZealandNew York & New Jersey, Port Authority

of, U.S.A.Niigata, Port of, (Niigata Prefecture), JapanOkubo, Mr. Kiichi, JapanOsaka, City of, JapanOsaka Port Terminal Development Corp.,

JapanPacific Consutants International, JapanPenta Ocean Construction Co., Ltd., JapanPoint Lisas Industrial Port Development Co. Ltd.,

Trinidad*Primer Concurso Internacional de Memorias

Portuarias: Carlos Armero Sisto, Anuariode Puertos: Buenos Aires, Argentina

Public Port Corporation I, IndonesiaPusan East Container Terminal Co.Ltd., KoreaQubec, Port of, CanadaShipping Guides Limited, U.K.Solomon Islands Ports Authority, Solomon

IslandsSouth Carolina State Ports Authority, U.S.A.Tauranga, Port of, New ZealandToyama Prefecture, JapanUPACCIM (French Ports Association), FranceVancouver, Port of, CanadaYamaguchi Prefecture, JapanTotal:

Spreial Report on Shipping Fmns' Prospectscnntributed by 'Box Carriers' MagazineIn January this year, Box Carriers magazine which is pub­

lished monthly by Tokyo News Service, Ltd., carried a specialreport of 'how leaders of the world's liner shipping firms viewtheir administations' prospects on the basis of interviews thepublisher conducted late last year. For the benefit of IAPH'sworldwide members, the publisher has made special arrange­ments for us to allow the reproduction of the report, whichoriginally appeared in the January 1995 issue of Box Carriersmagazine. It is with the deepest appreciation that we introducethis valuable report in the OPEN FORUM column of thisissue.

*Ist International- Contest of Port Annual Repprts sponsored bythe Yearbook of the Port of Buenos Aires (Editor, Mr. CarlosArmero Sisto)

493

259

267

350

4,000500100

1,000500

1,000200480

516500

1,702200

3,665924100

1,000

2501,000

2501,000

1001,000

3,0003,000

230

Amount(US$)

ABP (Associated British Ports), U.K.Abu Dhabi Seaport Authority (Mina Zayed)

Akatsuka, Dr. Yuzo, Univ. ofSaitma, JapanAkiyama, Mr. Toru, IAPH Secretary General

Emeritus, JapanAuckland, Ports of, Limited, New ZealandBarcelona, Puerto Autonomo de, SpainBintulu Port SDN BHD, MalaysiaCameroon National Ports Authority, CameroCayman Islands, Port Authority of, the

Cayman IslandsClydeport Ltd., U.K.Constanta Port Administration, RomaniaCopenhagen Authority, Port of, DenmarkCotonou, Port Autonome de, BeninCyprus Ports Authority, CyprusDelfzijVeemshaven, Port Authority of,

the Netherlandsde Vos, Dr. Fred, IAPH Life Supporting Member,

Canada 500Dubai Ports Authority, U.A.E. 500Dundee Port Authority, U.K. 250Empresa Nacional de Administracao dos Portos, E.P.,

Cabo Verde 250Fiji, Ports Authority of, Fiji 100Fraser River Harbour Commission, Canada 250Fremantle Port Authority, Australia 250Gambia Ports Authority, the Gambia 250Ghana Ports and Harbors Authority, Ghana 250Hakata, Port of, (Fukuoka City) Japan 1,705Halifax, Port of, Canada 250Helsingborg, Port of, Sweden 500Hiroshima Prefecture, Japan 523Irish Port Authorities Association, Ireland 1,000Japan Academic Society for Port Affairs,

the, JapanJapan Cargo Handling Mechanization

Association, JapanJapan Port and Harbor Association,

the, JapanJapanese Shipowners' Association,

the, JapanJohor Port Sdn. Bhd., MalaysiaKawasaki, City of, JapanKlang Port Authority, MalaysiaKobe, Port of, JapanKobe Port Terminal Corporation, JapanKorea Container Terminal Authority, KoreaKSC (Kuwait Oil Company), KuwaitKudo, Dr. Kazuo, Tokyo Denki University,

JapanLondon Authority, Port of, U.K.Maldives Ports Authority, MaldivesMarine and Harbours Agency of the

Contributors (in alphabetical order)Paid:

6 PORTS AND HARBORS June. 1995

Mr. Kondoh RepresentsIAPH at WOO Regional Meeting

lAP" African/EuropeanMembers Meet in Paris

The World Customs Organization (WCO), which is the work­ing name for the CCC, held a regional meeting on drug enforce­ment in February 1995 in Tokyo. The seminar was attended byrepresentatives from all Asia and Pacific WCO MemberAdministrations, with the exception of Iran. Representing IAPH,Deputy Secretary Gneral Kondoh of the Head Office attended theseminar. Later in this issue (in its INTERNATIONAL MAR­ITIME INFORMATION Column) we reproduce the report of thefive-day seminar prepared by the WCO's secretariat in Brusselswhich has been made available to this office through InternationalAffairs & Research Division, Japan's Customs & Tariff Bureau,Ministry of Finance, Kasumigaseki, Tokyo.

Following our brief report in the last issue on the regionalmeeting of IAPH AfricanlEuropean members in Paris, in this issuewe are featuring a more comprehensive report on the Paris meet­ing which was provided by Mr. Jean Smagghe, 2nd Vice­President of IAPH and Chairman of the meeting.

Meeting of IAPH Officialsfrom African/European Region

in the offices of UPACCIM(French Ports Association)

in Parison 14 and 15 March 1995

Tel:Fax:

2nd Vice-President, IAPHCyprus Ports AuthorityPort of HamburgPort of MiamiGuangzhouPort AuthorityPort of Le HavrePort of LimerickPort of Tema (Ghana Ports)Port of SeattlePort of Le HavrePort of Nantes-Saint-NazairePort of LondonIAPH Head OfficePort of TacomaPort of Le HavreEuropean Sea Ports Association(ESPO)Clydeport PlcKenya Ports AuthorityKenya Ports AuthorityPort of AbidjanCameroon National Ports AuthorityPuertos del Estado Espania (SpanishState Ports)Port of Nantes-Saint-NazaireUPACCIMUPACCIMPort of Le HavrePort of Le HavreIAPH European Rep (c/o BritishPorts Association)Port of BordeauxPort of RotterdamPort of DunkerqueDundee Port AuthorityPort of Goteborg

Mr. VallsMr. van der KIuitMr. VergobbiCapt. WatsonMr. Wennergren

Present:

Mr. Smagghe (Chairman)Mr. BayadaMr. BethMs. BoyntonMr. CaoMr. ColobyMr. DonnellyCdr DovloMr. FriedmanMr. GraillotMr. GuillemotMr. JefferyMr. KondohMr. KoonMr. LannouMrs. Le Garrec

1. In his welcoming address the Chairman referred to theslowness of the process of recovery from recession in the Regionand the consequent effects of this on port activity. In France inparticular, an additional difficulty is the feeling of uncertaintyassociated with the current Presidential election process. TheChairman then expressed pleasure at being able to greet the par­ticipants, a number of whom had travelled long distances to be

Mr. PateyMs. PernotteMr. PietriMr. PrevotMr. ScherrerMr. Smith

Mr. MatherMr. MkallaMr. KabugaMr. MoulodMr. MoussaMr. Palao

Av. Marina Mercante No. 2107 Piso, Veracruz, VER. 91700

Mailing Addressee: Mr. Herman L. DeutschMarketing Director52 (29) 32 131952 (29) 32 3040

Busan Container Terminal Operation Corporation[Regular] (Korea)Mailing Addressee: Mr. Lee, Hak Koo, President

Associate Member

Advisory Services on Ports and Marine Transport[Class A-3-3] (Australia)Address: 46 Martin Court, West Lakes, SA 5021Mailing Addressee: Mr. Robert Buchanan

Marine ConsultantTel: 61 8-499813Fax: 61 8-499813

Changes

Port of Reykjavik [Regular] (Iceland)Address: Harbour Building

Tryggvagata 17, ReykjavikMailing Addressee: Mr. Hannes Valdimarsson

Port DirectorTel: 354-552-8211Fax: 354-552-8990

Administracion Portuairia Integral de Veracruz S.A. de C.V.(Mexico)Address:

Membership Notes:New MembersTemporary Member

Port of Sundsvall AB (Sweden)Address: P.O. Box 805, S-851 23 SundsvallMailing Addressee: Mr. Owe Linton

Managing DirectorTel: +4660 193525Fax: +46 60 193507

PORTS AND HARBORS June, 1995 7

present as, for example, Mr. Kondoh from the IAPH Secretariat,Tokyo, as well as our African and American colleagues.

The Chairman took this opportunity to express his own person­al grief and that of IAPH members to the IAPH Secretariat and itsstaff as well as to our colleagues at Kobe and Osaka, followingthe recent disaster that hit that area.

Mr. Kondoh expressed the thanks of IAPH Headquarters andgrateful appreciation for the many expressions of sympathy whichhad been received following the recent Kobe earthquake disaster.These were duly conveyed to the Port of Kobe.

2.. Ms. Boynton, on behalf of the President of IAPH, expressedMr. Lunetta's regrets for his unavoidable absence. He wished themeeting well in its deliberations. Mr. Mather, in his capacity asImmediate Past President, added his words of welcome and good­will.

The Chairman said how pleased he was to see so manyAfrican ports represented. This was testimony to the vitality ofIAPH in the region: He also referred to his visit to the PMAW­CA Conference in Gambia in October 1994, where about 200people participated.

3.. IAPH Membership in Europe/AfricaMr. Kondoh reported that, generally speaking, more interest

had been shown in IAPH activities and membership during thelast year (240 members from 82 countries). Participation in com­mittee activities was also increasing.

Mr. Bayada, who during visits to various countries in theEastern Mediterranean area took every opportunity to promoteIAPH membership, was hopeful about the current situation. Heundertook to provide Mr. Kondoh with leads to follow up.· TheChairman thanked Mr. Bayada for his excellent work in areaswhich may sometimes be difficult.

Further reports were given by Mr. Wennergren for the Balticarea, Mr. Mkalla for the East African area and Mr. Dovlo for theWestern African area. Contacts in all areas were frequent but lit­tle more could be done at present because of the general economicmalaise.

The Chairman noted that, although the location of the mid­term Conference 2000 was yet to be determined, such an event,which was likely to be held in the region would be very helpfulfor recruitment purposes..

4.. Links between IAPH, ESPO andthe European Union

The Chairman noted that a measure of the importance attachedto the link between IAPH and ESPO was the presence at themeeting of ESPO's Vice-Presidents and Secretary General.ESPO's President was unavoidably unable to be present but hadsent his apologies for his absence.

Mr. Jeffery, an ESPO Vice-President, explained that sinceESPO's inception in January 1993 with a membership comprisingthe ports of all EU and aspirant States, most attention had beengiven to keeping abreast of Directives, Recommendations and thelike issued by the European Commission and Parliament. ESPO,however, was now becoming more proactive - as, for example, inits development of a Ports Policy paper for presentation toParliament.

ESPO's participation in the Union's Maritime IndustriesForum enhanced contacts with port users and also general aware­ness of matters of common concern.

Mr. Palao, the other ESPO Vice-President, suggested that therecould be a lack of awareness of IAPH's aims and objectives onthe part of some Commission officials, which may be the fault ofthe Commission's inter-departmental communication systems.He thought it would be useful for IAPH to meet Commission offi­cials to put matters right and, in particular, to make it clear thatIAPH's role was distinctly different from that of ESPO.

Mr. Palao's suggestion met with general approval and ESPO'sSecretary-General was asked to consider how such a meetingcould be arranged.

The Chairman said that a close working relationship existedbetween IAPH and ESPO, which was particularly important in thecontext of IAPH' s access to IMO. It was seen as very helpful tolink ESPO into discussion on IMO activities. In the same waymutual cooperation should exist between ESPO, the African PortAssociations and IAPH. Each of these organizations could beused to encourage action.

5.. Specific African Port ConcernsMr. Dovlo, speaking in his capacity as Chairman, the Port

Management Association of West and Central Africa (PMAW­CA), expressed the area's hopes for increased cooperation andtechnical and financial assistance from the European Union andIAPH to deal with a range of problems. For instance, regionaldredging was of great concern because of costs. African portswere considering pooling policy resources in the region. Theseincluded the need to enhance transport management and informa­tion systems, the development of human resources and transportintegration.

A major problem had become much more apparent with rapidtechnology change, namely equipment and spare parts defi­ciencies.

Mr. Dovlo continued that consideration was also being givento the formation of an African Ports Association inclusive of thePorts Managements Associations of North, East, South and WestAfrica to speak with greater authority in relevant fora.

Mr. Mkalla, in his capacity as Chairman, Port ManagementAssociation of East and Southern Africa (PMAESA), noted thatPMAESA had faced reorganisational problems which had now all

From left: F. Palao (Madrid), A.J. Smith (London), R. Kondoh (Tokyo), J. Smagghe (Paris) and P. Prevot (Le Havre).

8 PORTS AND HARBORS June, 1995

but been overcome. A new Secretary General had been appointedto be based in Mombasa, Kenya.

The area's ports were experiencing dredging problems and dif­ficulties with the restructuring of ports. In that latter regard aSeminar would be held in South Africa during November 1995.Arrangements had been made for a Regional Training Centrelocated in Mombasa to tackle port needs, including the exchangeof information between ports and pollution control. The area'sdifficulties were, of course, compounded by local wars andfamine.

Mr. Tchouta Moussa felt that IAPH should give more empha­sis to African affairs and concerns and should be restructured forthat purpose. He continued that the bottom line was "What canIAPH do about all the stated problems, and took the view that thestarting point must be an in-depth discussion of them.

Mr. Moulod agreed with his African colleagues and added thatthe area's port managers should become actively involved inIAPH committees.

Mr. Lannou, supported by Mr. Bayada, said that the HumanResources Committee was aware of the problems expressed.Dealing with them in Committee however was subject to the dis­advantage of the wide geographical spread of membership. Hewondered, as Chairman Jean Smagghe had suggested earlier,whether it would be feasible to secure the appointment of a VicePresident representing Africa in the Committee or even perhaps inIAPH. It was agreed that a first step would be to ask Mr. GoonKok Loon whether it would be appropriate to appoint a Vice­Chairman from Afric.a on his Human Resources Committeeand/or to organise meetings in Africa with the help of UNCTADand its TRAINMAR programme.

Mr. Kondoh urged all African members to become moreinvolved in IAPH's business activities.

6. Reports of the TechnicalCommittees' Activities

The Chairman noted with satisfaction the presence at the meet-ing of the Chairmen of the following Technical Committees:

Port Safety & EnvironmentMarine OperationsLegal ProtectionTrade FacilitationShip TrendsCombined Transport & Distribution

The respective Chairmen reported briefly on the more signifi­cant aspects of their Committees' activities and confirmed thatthey would be holding meetings on the occasion of the 19th IAPHConference in June 1995 in Seattle.

Mr. Mather drew the attention of Mr. Valls, Chairman,Committee on Legal Protection, to the increasing concern of portsand their officials at difficulties being put in their way by the pub­lic in demonstrating against the perceived right of ports to engagein lawful maritime trade. He instanced recent public demonstra­tions in the UK against the export of livestock through someports, which had resulted in public disorder and, in one case, theforced resignation of a Port's Chief Executive. He asked whetherthe Legal Protection Committee could consider and comment onthe rights and obligations of ports to engage in lawful trade. Mr.Valls agreed to include the matter on the Committee's agenda.

Mr. Kondoh reminded the Chairmen that their reports to the19th IAPH Conference were required for printing purposes by thefirst week of May and that, of course, the co-ordinating Vice­Presidents needed a copy of their reports before so that they couldsend their own introductions in time.

7. IAPH/IMO RelationshipsThe Chairman reported on developments following the forma-

tion of the IAPH/IMO Interface Group at the Exco meeting inCopenhagen in June 1994, being himself Chairman of that group. Fourwell-attended meetings had been held to date with TechnicalCommittee Chairmen invited to attend ex-officio. He said that theimportance of the subject matter dealt with was.in no doubt, given thecurrent propensity for States and/or Regional groupings such as theEuropean Union to legislate on the basis of IMO Resolutions andRecommendations.

The Group had submitted position papers to IMO on a range ofissues which were under current consideration. Others were planned orunder way.

Mr. Smith, in his capacity as IAPH's Liaison Officer with IMO,underlined the Chairman's remarks and the need for IAPH'sCommittees to establish reasoned, coherent port-related responses to anumber of matters under discussion at IMO. These responses could beused both by IAPH representatives at relevant IMO meetings and as anaide-memoire for IAPH members in their consultations with theirrespective Governments.

Mr. Smith then provided some examples of issues to be addressedby IAPH which would be discussed by forthcoming IMO meetingsduring 1995.

There was general agreement by the meeting as to the importance ofthe Group's activities and it was proposed that the Group could bemade more effective by the addition of one or two more people fromeach region. In that regard Mr. Palao proposed that an ESPO represen­tative should be included, having regard to the strategic interest ofEuropean ports in IMO activities.

Mr. Palao's proposal was generally supported, together with hisemphasis on the need for cooperation and coordination between IAPHand ESPO. It was accepted, however, that ESPO necessarily reflecteda regional viewpoint. IAPH, on the other hand, needed to secure a bal­anced global port viewpoint.

To exemplify the situation, ESPO offered to provide IAPH with an'informed' paper on unwanted aquatic organisms in ballast water as acontribution to IAPH's consideration of the subject.

8. Oslo/Paris Commissions

Mr. Smith referred to the urgent need for European ports to assessthe extent to which it continues to be advantageous for IAPH to havemuch prized Observer Status with the Commissions or even, perhaps,whether it might be more appropriate for that Status to be transferred toESPO, being a body representative ofthe Region's ports.

He stressed, however, that Observer Status entailed commitments toensure that an adequate and expert input is made to the relevant workareas of the Commissions.

ESPO representatives agreed to consider the matter and inform Mr.Smith of their decision in due course.

9. Organisation of the SeaITacConference

Audio-visual presentations were made by Mr. Koon, Tacoma, andMr. Friedman, Seattle, on the various facets of the Conference pro­gramme.

The meeting made some proposals for amending some aspects ofthe pre-Conference Technical Committee arrangements and WorkingSessions Nos. I, 4 and 6.

Mr. Smagghe, in his capacity as Chairman of Working SessionNo.6, confirmed his acceptance of the proposed revisions. It was thenagreed that Mr. Kondoh would obtain the necessary confirmation fromthe Chairmen of Working Sessions Nos. I and 4 and inform theOrganizing Committee accordingly.

In' his closing remarks, the Chairman again thanked those presentfor their attendance and wished them safe return or onwardjourneys.

PORTS AND HARBORS June, 1995 9

OPErlFOAUMShipping Firms' Prospects

Acknowledgement by the IAPH Head Office: The article is reproduced from the January 1995 issue ofBox Carriers magazine through the special arrangements made by the publisher, Tokyo News Service, Ltd.This office expresses its deep apperciation and thanks to the publisher for the permission accorded to IAPHto publish this valuable report. .

Leaders of World's LinerShipping Firms Air ViewsThe international magazine Box Carriers interviewed the leaders of the

world's liner shipping firms at the end of 1994 about the prospects andisuesfacing them in the new year 1995.The following three questions were asked:1. Your prospects for cargo traffic on the world's major liner routes and liner

shipping markets in 1995.2. Issues the world's major liner operators are expected to address in 1995.3. Issues your firm is planning to address in the new year.

Given below are the opinions of the world's top carriers:

J. (George) HayashiPresidentChief Executive OfficerAmerican President Lines-1. Generally, the outlook for theglobal liner trade is extremelypositive for this year, and that'son top ofsubstantial growth during1994. We expect double-digit ex­pansion in both the transpacifictrade, which is APL's traditionalmarket, and the Asia-Europe trade,which we will be entering inMarch.

Among the positive trends: first,the continued globalization ofsourcing and marketing, as 'com­panies seek to increase theircompetitiveness; second, theopening or further development

10 PORTS AND HARBORS June, 1995

of emerging markets such asChina, India, Vietnam, easternEurope, Mexico and other areasof Latin America, and - poten­tially - Cuba and North Korea;and third, the escalated dismantl­ing of tariff and non-tariff barriersto trade through GATT andNAFTA, and the recent APECannouncements from Indonesia.All of this bodes well for globalmanufacturers and retailers, andfor the liner sector. But even aswe witness a strong growth in de­mand, there is concern that theinflux of new capacity may im­balance the supply ratio in ourindustry.-2. The problem of overcapacityin the liner sector seems to beperennial. The industry will againbe addressing the issue - alongwith related pricing questions ­as large new vessels come intoservice during 1995-96. In our owncase, much ofthe new tonnage willbe replacement capacity. Also, inthe case of the Asia-Europe trade,we have pledged initially to slot-

charter capacity rather than in­troduce new vessels of our own,so as 'not to contribute to a supplyimbalance by virtue of our entryinto the trade. The industry hasmade impressive strides in the useof alliances and rationalizationofvessel operations to mitigate thecapacity problem, while at thesame time improving service to thecustomer.

When people ask me why over­capacity is so prevalent in ourindustry, I like to explain that thedevelopment oflarge capital assetssuch as post-Panamax container­ships must be undertaken for thelong term, in anticipation offuturetrade growth. These ships havelong economic lives, and vesselreplacement programs by theirvery size and nature cannot beprecisely timed to coincide withrare periods of demand imbalance.The opposite. of overcapacity, ofcourse, is a situation that is notdesirable to the customer commu­nity; an undertonnaged trade canresult in severe space constraintsand lack of service predictability.

Another issue some in the in­dustry will grapple with in 1995(and beyond) is how to ensure anadequate return in a fiercelycompetitive, capital-intensive bu­siness - one in which the econmhicplaying field is not level. Witheconomic returns as low as theyare, it may seem surprising thatthe industry continues to reinvestcapital in the form ofnewbuildings,

new technologies and new marketsand services. In fact, some of thismassive investment occurs in partbecause many operators do nothave to pay equitably for capital,or to adhere to the same economicobjectives as those of us who mustgenerate a reasonable shareholderreturn. We compete every day withsuch companies.-3. APL has several goals that Imight share to help answer thisquestion. First, we'd like to workwith our alliance partners to de­velop additional areas for ratio­nalization - beyond ship assets.These might include terminals andland-based operations, for exam­ple.

Second, we'd like to work withCongress and the U.S. adminis­tration to attempt to revitalizemaritime reform in 1995, andthereby preserve a U.S.-flag pres­ence. Why? We think it's not onlyimportant as a matter of nationalsecurity, but also for commercialreasons; that it's not healthy forexporters and importers in theUnited States ---' the world's largesttrading nation - to rely solely onforeign shipping interests for theirtransportation needs.

Third, we have begun a programto re-engineer and simplify ourwork processes, with the objectiveof making it easier for our cus­tomers to do business with us. Weexpect to begin implementing someof these improved processes thisyear.

Olav K. RakkenesChairmanChief Executive Officer

Atlantic Container Line-The North Atlantic started outin 1994 with a situation of ex­tremely heavy volumes in thewestbound direction, leading tovirtually full vessel utilization inthat trade leg. This was due to thestrong economic climate in NorthAmerica, as evidenced by strong

automobile sales and housingstarts. In the eastbound directionvessels were operating in the 60-70percent utilization range with theEuropean economies still comingout of recession.

By the end of 1994, both NorthAmerican and European econo­mies were growing at a healthypace, so that eastbound volumeshad grown substantially closer tothose of westbound, putting se­veral carriers in the pleasant po­sition of being relatively full inboth directions.

The competitive climate has re­mained quite stable in 1994, despitethe comings and goings of severalnew carriers and increased ca­pacity on the part of several ex­isting operators. As a result, supplywas added to match increased de­mand without any major degreeof turmoil in the trade. 1995 willsee one new entry, Hanjin, but noother major changes are foreseenat this time.

The key question mark facingAtlantic liner operators in 1995 is

Chen ZhongbiaoPresident

COSCO Group.-1. 1994 has seen great changesin the world economy, trade andthe international shipping market.As far as the liner shipping marketsare concerned, the container car­rying capacity has increased to acertain amount on three majoreast/west world liner routes. Ap­parently, it is more and more dif­ficult for the liner operators tohandle their business because ofthe overcapacity growth whichresulted when a large amount ofnewbuildings entered the services.

Some routes have suffered forsome time from depressed marketconditions where the competitionis fierce; look at the fact that theliner operation of EACBen wastaken over in 1993 and" that CGMof France has withdrawn fromAsia/Europe service recently.

With the world economy recov­ering further in 1995 and the far­reaching GATT agreement, theworld will see expansion of com-

how the regulatory agencies inWashington and Brussels willchange the rules of engagement.The economic environment bodesvery well for a balance of supplyand demand in 1995, with mostlines finally able to consider ser­vice enhancements. As an example,ACL will be adding a fifth weeklyservice to the trade as a result ofimproved rationalization with itsoperating partners. Yet that couldall change if the bureaucrats de­cide to rewrite the laws and changethe way conferences have operatedsince the beginning of containeri­zation.

Of immediate concern is how theEuropean Commission will dealwith intermodal ratemaking, andhow they will rule on the Trans­Atlantic Conference Agreement.On the other side of the Atlanticare the issues of the future of theFederal Maritime Administrationand tariff filing. The outcomes ofthese two issues will determine thecourse of liner shipping for yearsto come.

mercial trade, which will boostglobal seaborne trade. World boxvolume growth of five percent isexpected in 1995. Transpacificcontainer trade has recorded310,000TEUs in the fist halfof1994,a 12 percent increase over the sameperiod of 1993. A greater growthof transpacific container trade isestimated with the recovery of theU.S. economy and continuance offast growth of the East Asianeconomy. Asia/Europe service willexperience expansion of containervolume as the exports from Chinaand NIEs continue to soar, al­though the Japanese import andexport volume will decrease so­mewhat.

However, we have to realize thatmany large containerships beingordered by liner operators willmake a notable impact on the worldliner market, which is not too op­timistic for 1995, particularly ontranspacific and Asia/Europetrades where competition is set tobe fierce as large containerships(especially post-Panamax vessels)come into service.-2. In my opinion, there are twoissues they are expected to address.First, the supply and demand on

PORTS AND HARBORS June, 1995 11

extensive growth in China; how­ever, with deployment of larger­size vessels by major carriers andexpansion of joint services, com­petition for cargo procurementwill intensify.

In the Europe-Aisa route, withlarger than 4,000-TEU-class ves­sels being heavily integrated intothe market, overcapacity is a majorconcern. For the transatlanticroute, a positive increase in cargovolumes is also expected andTACA's efforts to stabilize theservice will foster the maintainingof a favorable market.-2. This year will continue to seeconstruction of larger vessels bythe world's major ocean carriers.Futhermore, these larger vesselspresumed to be deployed mainlyin the Europe-Asia lane, will pro­duce overcapacity by the end ofthe year.

The increase of cooperative re­lationships between carriers isforseen for the reduction of costsand for the improvement ofservicequality. Thus, the super-consortiatrend will keep going, but the re­gulation of consoritia will betightened as the principles offree-competition in the maritimeindustry deepen.

Another major issue for themaritime industry this year willbe vessel safety and environmentalconcerns. As safe vessel manage­ment becomes an internationalstandard, ocean carriers will beexpected to secure ISO 9000 andISM Code certifications, and am­plification of safety and environ­mental protectionism will be afactor causing an increase of everycarrier's cost base.-3. During this year, HanjinShipping will strengthen interna­tional competitiveness to continueits qualitative and quantitativeevolution into a total logisticscompany. The company will alsofocus on service expansion andglobalization of comp~ny man­agement resources through devel­opment of new service markets.

In 1995, Hanjin Shipping willbegin new service in the transat­lantic trade through a slot-charteragreement with the Tricon con­sortium. Hanjin's new transat­lantic service will link North Eu­rope and the U.S. East Coast by

1. IMF predicts that the worldeconomy will enter a productiveperiod with 3.6 percent expansionin 1995. With this growth, a strongincrease in trade movement is ex­pected this year, but nations andeconomic regions will acceleratetheir efforts for economic leverage.

With the economic recovery ofmajor nations, higher interna­tional interest rates will be main­tained as countries encourage apolicy of increasing interest ratesto alleviate the pressure on in­flatiQn.

According to the various fore­casts, the world's largest tradelane, the transpacific, will seecargo volume growth of more thansix percent with the economic re­covery of the U.S. and Japan and

bly grow 10 percent and more,whereas Africa may only reach fivepercent.-2. The most important subjectall lines must address is the frontalattack on "cooperative agreeme­nts" among shipping lines by theEU Commission in Brussels, to asomewhat lesser extent by theFMC and certain circles in Con­gress as well as by groups ofshippers (NTLG in the U.S.) and"shippers councils" in Europe andsome Asian countries.

The most dangerous case is thealmost certain move of DG IV inBrussels to declare "intermodalauthority" for conferences illegal.It will endanger the whole systemwhich worked well for over ahundred years.-3. Like most major containercarriers, DSR-SENATOR willprepare itself for the future in thatit will join forces with other lineson most of the trade routes itserves. The aim is to improve ser­vice quality and to cut costs.

K.H. SagerChairmanof the Executive Board

DSR-SENATOR LINES-1. 1995 will be a year of consid-erable growth in world trade.Container traffic on the majoreast/west routes will grow at aboutat least eight percent.

North/south things will differ.Latin America's trade will proba-

major container liner routes; andsecond, the coordination and co­operation between major lineroperators.

Being China's leading maritimetransporter, COSCO's main taskis to provide transport service forChina's foreign trade. What I amthinking about is how to meet theneeds of China's growing foreignfrade through the rationalizationprogram of COSCO's fleet..-3. COSCO Group is a multi-na-tional enterprise engaged mainlyin shipping with diversificationof business. It will make efforts forfuture development both on landand at sea.

In 1995, COSCO will strengthenits shipping activities through therationalization of its fleet, im­provement of management, ap­propriate training of seafarers toimprove their service capabilities,and the setting up step by step ofa global shipping network that canprovide its customers with betterand more prompt service.

Apart from shipping activities,COSCO is also getting involved infinance, tourism, air transport,real estate, port management,warehousing, industry,commer-cial trade, insurance and invest-ment, ect., as diversification ofbusiness is COSCO'spolicy . forfuture development.

1995 will be a new year forcontinuing expansion of the Sooho Choland-side industry for COSCO PresidentGroup. Taicang City, which is in Hanjin Shipping Co., Ltd.the vicinity of Shanghai, has beenchosen by COSCO as the land-side -base for future development. Weare looking forward to strength­ening cooperation with foreign anddomestic friends to achieve mutualdevelopments.

12 PORTS AND HARBORS June, 1995

offering alternatives to customerswhile preventing undue competi­tion and thus contributing to thestabilization of the trade lane.

In an effort to achieve a fairbalance between the container andbulk trades, Hanjin Shipping willreinforce its bulk fleet, includingLNG vessels, this year. But aboveall of these, our company will makeevery effort to provide servicewhich brings the utmost satisfac­tion to our customers. I sincerelywish for a prosperous year for allin our industry.

Isao ShintaniPresidentKawasaki Kisen Kaisha, Ltd.-Prospects for the world's majorliner rO\ltes may be summed up asfollows:

North America: Eastboundcargo traffic on the transpacificloute registered a stable growthof seven to eight percent in 1994centering on shipments from Chinaand ASEAN countries to NorthAmerica, under the impetus of theU.S. economic recovery. Regard­ing the outlook for 1995 and 1996,the growth pace is likely to calmdown owing to high interest ratesand a trend toward higher taxesin the U.S. Basically, however, theU.S. move toward expansion ofimports from Asia has taken firmroot, and a slow annual growthof at least five to six percent isexpected.

The westbound transpacifictrade posted double-digit growthrates in 1994 in stark contrast withstagnation in 1992 and 1993. Majorfactors that can be cited for thisinclude the rapid growth of theChinese economy, the strong yenand an investment boom inSoutheast Asia. As regards theoutlook for 1995 and 1996, thegrowth pace of westbound cargoseems likely to slow down partlybecause of China's tight-moneypolicy. But the purchasing powerstemming from the economic de­velopment of Asian countries willcontinue to improve, while the

U.S. will increase pressure forexpansion ofAsia nations' imports.Accordingly, an annual increaseof at least about five percent maybe expected.

As for the ship supply-demandrelationship, no major fleet ex­pansion seems likely to take placein 1996, but no optimism is war­ranted as yet for 1996 and after.A large-ship building rush cur­rentlyseen among shipping firmsis apparently intended mainly forthe European route. However,there is the possibility that someships will be shifted from the Eu­ropean to the North Americanroute. In that case, the supply-de­mand situation may ease in spiteof smooth cargo traffic.

Asia: After the end of the ColdWar, intra-Asia trade, as a "factoryof the world" and a "major con­suming market," has shown re­markable growth, and in 1993, theintra-Asia cargo traffic reachedabout four million TEUs. Amongthe world's Big Three trade routes,the intra-Asia route ranks secondonly to transpacific trade. It is alsocharacteristic that the intra-Asiantrade has an inter-relationshipwith the transpacific trade.

According to conference statis­tics on cargo traffic to and fromJapan, an increase of about 12percent was seen in the first halfof 1994 compared with the sameperiod ofthe previous year. Despitethe sustained rise in the yen's ex­change value, Japan's exports toother Asian nations continue briskpossibly because the shipment ofmaterials resulting from Japanesemakers' shifting their productionto these countries is gatheringadded momentum. As for China,which is now serving as a"locomotive" for pulling the in­tra-Asian trade ahead, a calm­ing-down trend may be expectedfrom 1995 owing to the Chinesegovernment's tight-money policy,Hong Kong's reversion to China(1997) and other factors. Never­theless, the intra-Asian trade isexpected to grow smoothly by fiveto 10 percent from 1995 to 1996.

Europe: The European economystarted to rebound in the secondhalf of last year, and an expan­sionary trend took root in Ger­many as well, following Britainand France. Along with these EUnations, the former socialist states

in eastern Europe have also startedto show stable economic growth.

This year, westward cargo trafficis likely to continue smooth growthcentering on daily necessities fromHong Kong, China and SoutheastAsia. Eastbound cargo traffic isalso expected to be brisk, supportedby the economic growth of theseAsian countries.

The problem lies in that thesuccessive commissioning of newlarge-sized vessels by variousshipping firms, which is expectedto start around this spring, willcause the growth of tonnage tooutpace that of cargo volume,which in turn will become a dis­turbing factor in the market. Inorder to avert the expected con­fusion, we intend to continue our

. efforts for cooperation transcend­ing the frameworks of conferenceand non-conference lines.

As regards "K" Line's basicpolicy for management and busi­ness in 1995, the key phrase willbe "the strengthening of interna­tional competitiveness through athorough shift of operations toother countries and the reductionof costs." Under this policy, weare now implementing a sweeping"reengineering" plan with a viewto providing customers with sat­isfactory service and securingstable revenues even if the yenremains strong at the¥100 level.

Called the "K.R. ("K" Line Re­engineering) Plan," this plan isbased on the following two con­cepts, and we are exerting com­pany-wide efforts to achieve itsobjectives by the end of fiscal 1995.-1. In the liner division, whichis deeply affected by the strong yen,we will set up a structure capableof turning a profit through partialtransfer of business to othercountries, "slimming" of oper­ations, reduction of ship-operationcosts, based on thorough applica­tion ofthe principle ofcompetition,and the strengthening of cost­competitiveness, involving the"K" Line group firms, by the timethe K.R. Plan comes to an end.-2. In order to further expand ourbusiness in the marine transportof raw materials and other cargoin bulk, automobiles and energysources, we will assign managerial

PORTS AND HARBORS June, 1995 13

progressive worldwide recovery inconsumer demand will translateinto increased shipping activity,and benefit shipping companies.

We are glad to note the steadyupturn in the American economy,which was also reflected by theU.S. Federal Reserve's concernson runaway growth and inflationrates. The carriers in the Trans­pacific Stabilization Agreement(TSA) have been successful instabilizing the trade and ensuringthat shippers are provided withadequate capacities at high servicelevels. We expect the transpacificcapacity to grow by only fourpercent to 7.5 percent between 1995and 1996 compared to a sevenpercent and 15 percent cargogrowth on the eastbound andwestbound sectors respectively.

The Far East-Europe trade isexpected to grow by about sixpercent next year against a ca­pacity increase of about eightpercent. Contrary to fears of anovercapacity in this trade, we feelthat this incremental capacity willbe easily absorbed during the peakmonths. The German economy isexpected to recover fully by 1995and be able to lead the rest ofEurope. The advent of CentralEuropean economies will help tofurther boost the ovenill Europeaneconomy.-2. A general concern amongshipping carriers is the potentialscenario of an unmanageable ca­pacity surplus in 1995 when allrecently-ordered newbuildings aredelivered. This concern is a littleoverstated, as these newbuildingdelIveries will be spread over threeyears from 1995 to 1997. Moreover,by 1996 about seven percent of theexisting TEU capacity of theworld's top carriers will be fromships over 25 years of age. Thiscapacity is likely to be scrappedand will dampen the net capacityincrease.

Nonetheless, an enduring prob­lem that box carriers face is thatthe unitized capacity of box shipsis "lumpy" in nature. The con­tainer liner industry is more likelyto face a surge in capacity, ratherthan incremental increases, whencarriers replace smaller old ton­nages with larger new ones. Car­riers can moderate these high in­creases through space sharing

investment plans, the prime taskwill be to maximize the effect ofintegration with APL, Nedlloyd,OOCL and MISC, which links theBig Four shipping markets of theworld. As for the tramper, dedi­cated carrier and gas tanker divi­sions, we intend to tackle, withadded vigor, the task of ensuringsafe and stable transport of energyand other raw materials that sup­port our country.

resources to these sectors on apriority basis to strengthen thesystem of securing stable revenue.

Masaharu IkutaPresidentMitsui O.S.K. Lines, Ltd.-Prospects for the world's linerroutes seems to remain as severeas at present, but the ship sup­ply-demand situation will not beso bad as is generally said. Whenwe consider the economic devel- Lua Cheng Engopment ofAsia and progress in the Chief Executive OfficerEuropean economic recovery, it Neptune Orient Lines Ltd.is conceivable that the supply-de-mand situation will head toward -a large measure of equilibrium on 1. In the last forty years of theboth the Trans-Pacific and Euro- GATT-Bretton Woods era, thepean routes. world economy has grown faster

In short, all will depend on than in any other period in. ourwhether we can rectify the false, history. The establishment of theunjust conference/non-conference World Trade Organization thisrelationship, whicl\ still persists year will ensure that the successfuleven though the quality of service rules for the international eco­has been all but equalized, and also nomic game under the GATT­on whether we can normalize the Bretton Woods trading systemcurrent freight rates which have. continues. The root of its positivefallen into confusion due to that impact will be gradually evidentrelationship. I hope that 1995 will from 1995 as nations strive to re­be made the year to start normal- duce or eliminate trade barriersization through concerted efforts and tariffs.of the Japanese shipping commu- 1995 looks a promising year.nity. Since last year, I have been Asia-Pacific economies in factcalling upon shipowners, through started building their foundationsuch forums as the Box Club, to for free and open trade when theshow good sense and voluntarily Asia-Pacific Economic Cooper­refrain from constructing new ation (APEC) agreed in 1994 to setvessels. I hope this appeal will be fixed deadlines to liberalize trade.heeded. Both Japan and Europe appear

As for the issues our firm intends to have emerged from their worstto address in 1995, the most im- recessions during 1994. The diffi­portant is to bring to fruition our cult years following Germany's"MOL's Creative & Aggressive reunification seemed to be overRedesigning (MOCAR, 90's)" plan with the eastern part of Germanynow being pushed ahead. The aim now registering impressive growthis to strengthen our structure to rates. The U.S. economy appearsthe extent ofturning a stable profit to have peaked in 1994, but willeven if the yen's exchange value continueitsslowerbutsuregrowthto the dollar rises to ¥90, and to in 1995. The Asian newly indus­establish our system asa powerful trializing economies are expectedcomprehensive operator in the to continue doing well.remaining years of the 1990s with These favorable conditions canan eye to the 21st century. only benefit world trade and the

Regarding our· liner division, shipping industry is a direct ben­which has completed a series of eficiary of the world economy. A

14 PORTS A·ND HARBORS June, 1995

cooperations.It will be cruicial for carriers to

maintain a stable operating envi­ronment through responsible ac­tions so that shippers can continueto enjoy the high level of servicethat is being provided.

We are also concerned about thelack of reality on the part of reg­ulators in Europe. The recent ob­jections to the Trans-AtlanticAgreement (TAA) and the Eu­rope-Asia Trade Agreement(EATA) were not justifiable andwere not up with the times. Theobjections of the EuropeanCommission's (EC) CompetitionDirectorate (DG-4) to inland pric­ing, for example, do not take intoaccount that the shippers' re­quirements have evolved into onethat demands a comprehensivemultimodal service from shippingcarriers.

The provision for and thus thepricing of inland transportation'services by shipping carriers is nodifferent from the provision of li­mousine or hotel services by· someairlines. It is customer driven!Attempts by regulators to arti­ficially delineate industries willcreate more confusion than helpconsumers.

In fact, today's ocean carriersshould more accurately be referredto as total transportation provid­ers. The rationalization of oceanand land transportation by carri­ers or groups of carriers will leadto cost efficiencies that will ulti­mately benefit shippers.

The EC's unrealistic stand wasalso reflected in the final text ofthe proposed regulation on ship­ping partnerships which tried toregulate technical space-sharingpartnerships between carriers bycontrolling the size of their marketshares and size of the partnership.This attempt is an antithesis to thecarriers' attempts to minimizecosts by rationalizing their oper­ations and improve on cost andservice efficiency to shippers.

There is a need to increase ourdialogue with regulators like theDG-4 and the Federal MaritimeCommission of the U.S. to putforward our views. Box carrierswill also have to impress on theseregulators that they should con­centrate on more pressing issueslike the deregulation of cabotagetransportation, which will directlylead to better service levels and

lower costs to shippers. For ex­ample, consumers in Japan and theU.S. are unable to benefit fromcompetition that can be providedby the presence of efficient andlow-cost international carriers oncabotage trade lanes.-3. We will continue to be cus-tomer driven and will base ourstrategies on our customers' needs.We are also radically re-examiningour business theories as the needsof our custome"rs change. Certainoperating assumptions and cus­tomer requirements are either nolonger valid or adequate.

In the last three years, NOL hasenhanced its presence in Northand South Asia by taking advan­tage of the economic boom in theseareas. Our immediate task is toconsolidate our position so thatwe continue to be competitive tomeet challenges in the market­place.

The NOL fleet has also under­gone rapid expansion over the lasttwo years. Since 1992, we havetaken delivery of three 3,600-TEUcontainerships as well as six dou­ble-hull Aframax tankers. By 1996,NOL will take delivery of anotherthree double-hull Aframax tankersand six 4,400-TEU containerships.Preparatory work for their de­ployment will be part of our focus,keeping in mind that we seek toobtain the best possible returns forour shareholders for their invest­ments.

Hiroshi Takahashi'Executive Vice-PresidentNippon Yusen KabushikiKaisha-As for cargo traffic on majorliner routes in 1995, a generallystrong trend may be expected onthe transpacific route. In 1994,cargo traffic from Japan suffereda drop of five to six percent in thefirst quarter from a year before,but recovered to the year-before

level in the second quarter.Briskness was also maintained inthe third and fourth quarters. 1995will see a firm trend. Cargo fromthe ANERA-controlled areasposted a remarkable increase of10 to 13 percent in 1994, comparedwith the previous year.

In 1995, a rise of seven to 10percent may be expected. I amrather optimistic about the shipsupply-demand situation on thetranspacific route as a whole.Westbound cargo traffic on thetranspacific route also showed asubstantial increase in 1994, witha brisk trend also anticipated for1995.

As regards the European route,cargo traffic from Japan to Europetended to be slow in 1994, but in1995, a slight increase may be ex­pected. Cargo from Asia to Europeposted a gain of7.5 percent in 1994,with a further 10 percent rise likelyin 1995.

Among other routes, a more orless leveling-off tendency willprevail on the Middle Eastern,Australian, New Zealand and La­tin American routes. By contrast,the intra-Asia trade will show arobust growth of seven to 10 per­cent.

A major issue confronting theworld's liner shipping firms is, af­ter all, the stabilization of trade.It is necessary to establish mutualtrust through such open and fairdiscussion· forums as the TSA,WTSA, EATA and IADA. As re­gards policy issues, full attentionwill have to be paid to the trendsof the shipping policies of the U.S.and the EU.

In respect to U.S. shipping pol­icies, moves are are being seenseeking a review of the whole as­pect of the FMC, while in the EU,the EC Commission has workedout policies that ignore the es­tablished practice of internationalshipping with regard to consortiaand the setting by conferences ofintermodal freight rates. Strongopposition is therefore called foragainst such moves.

The issues facing NYK in 1995are to promote cooperation withthe world's major liner shippingfirms and stabilize trade, to en­hance profitability in the linerdivision, and to cope with the on­going rapid change in the inter­national logistics structure.

PORTS AND HARBORS June, 1995 15

T.R. ChangChief OperatingOfficerOrient OverseasContainer Line-1. We are taking a moderate,optimistic view on market pros­pects on the world's major linerroutes in 1995. The outlook of theworld economy is positive. AsiaPacific and the USA will continueto be strong; Europe and Japanare on their way to recovery, andthe Uruguay round of GATT isexpected to become a reality. Thefavorable economic environmentwill give rise to buoyant liner tradegrowth in 1995.

However, at the same time, agreat deal ofcapacity will be addedon the major liner routes in thenext two years, particularly in theAsia/Europe trade. In spite of that,1995 will, on balance, still be ahealthy year for the liner shippingindustry.

2. How to maintain trade sta­bility will be a common agenda forthe world's major liner operators.Improving operating efficiencywill also be a common goal for theliner operators. The benefits ofboth will eventually be shared byshippers.-3. Our company will continueto focus on customer service andthe quality of service. To achievethese goals, we have invested inbuilding six 4,960-TEU vessels forour transpacific and Asia/Europeservices as well as one 2,300-TEUice-class vessel for the St. Law­rence service. Complementing thenewbuildings will be a significantinjection of capital for newequipment. In addition to hard­ware, we will continue tostrengthen our software estab­lishment.

People have always been re­garded as one ofthe critical successfactors to our company. The de~

velopment and motivation of ourstaff is essential and we have de­veloped various programs to real­ize this objective. Informationtechnology and system support is

16 PORTS AND HARBORS June, 1995

also an area where we will injectour resources. We will also con­tinue our emphasis on logisticdevelopment in the PRC in 1995.

Our investments in both hard­ware and software are aimed toprovide quality service to meet ourcustomers' requirements. There­fore, of equal importance, we willcontinue with our quality assur­ance process, including obtainingISO 9002 accreditation for all ouroffices and vessel SEP certif­ication. In 1994, our offices in theU.K., France, Germany, and theBenelux, as well as Hong Kong,were accredited and all the vesselsin our fleet achieved SEP certif­ication.

John P.ClanceyPresidentChief Executive Officer

Sea-Land Service, Inc.

-I'll start with a brief update onproductivity and cost reductioninitiatives. Sea-Land has madesignificant progress. The companyachieved $138 million in cost re­ductions in 1992, added $124 mil­lion in cost reductions in 1993 andis on target to reach its goal of$112million in cost reductions for 1994.We expect comparable savings in1995, sufficient at least to offsetinflation.

These gains deliver importantbenefits to Sea-Land. They en­hance our earnings, improve ourservice levels, and help us meetour customers' requirement thatwe be a low-cost carrier. This, inturn, improves our market positionand provides operating leverage.

Going forward, our process im­provement teams (PITs) will leadthe way. For the last year, ninePITs have been focusing on howwe manage our core functions,from inventory practices and ac­counts receivables to equipmentmaintenance and safety initi­atives. Efficiencies are being re­alized, services are being im­proved, and unnecessary costs and

activities are being taken out.Let me focus on the growth side

of our business. We believe thatthe prospects are positive. Cargovolume in all major trades this year- the Pacific, Atlantic, LatinAmerica and Asia-Europe - areup by about 10. percent overall.And over the next three years, weexpect these same trade lanes togrow by another seven to eightpercent each year. Clearly, con­tainer shipping is in a period ofsustained growth.

Pacific EastboundOur forecasts show that this

trade lane will finish the year up10.3 percent over last year. Takinga look at 1995 througb 1997, wepredict a compound annual aver­age increase ofsix to seven percent.The continuing U.S. recovery willstimulate growth in the eastboundPacific trade, as will rising con­sumer confidence, and continuedstrong economies in SoutheastAsia, China and Hong Kong.

Pacific WestboundThis trade will be up by 12 per­

cent in 1994 over 1993, and we seeit increasing at seven percent peryear for the next three years. Themarket really made a rebound in1994 and the directional balanceis improving with the reefer tradeleading the way - it's up 22 percentover the first half of 1993. We arealso seeing strong volume growthto China, Hong Kong, and South­east Asia. A weaker dollar shouldcontinue to stimulate exports.

Atlantic EastboundFor 1994, we see the eastbound

transatlantic shipments up fivepercent, with increases of six per­cent per year through 1997. Theweaker dollar has helped to liftU.S. exports of commodities suchas chemicals, agricultural pro­ducts, wood, reefer products, andkraftpaper. While Germany,France and Belgium are leadingthis growth, the United Kingdomcontinues to expand. Exports fromthe U.S. to the CIS are continuingto grow, up 186 percent since 1989.

Atlantic WestboundContinued growth in the U.S. is

helping to feed the transatlanticwestbound shipments of paper,chemicals, machinery, foodstuffsand metals. The strongest growth

rates are from the CIS to theU.S.,and from northern Europe to theU.S. With the improving healthof the European manufacturingsector, volumes in the Atlanticwestbound trade for 1994 were up14.4 percent and we see six percentgrowth for 1995-1997.

Americas NorthboundThe volume of shipments from

Latin America to North Americais up 6.1 percent this year, and weexpect volumes to be up anotherseven to eight percent per yearfrom 1995-1997. Contributing tothis growth of northbound cargois a rise in non-traditional exports,greater containerization of bulkcargos, strong growth in north­bound cargo from Central. andSouth America and slightly lowergrowth from Puerto Rico and theCaribbean.

Americas SouthboundWe see volume in the south­

bound Americas trade finishingthe year up 9.2 percent for 1994and another eight percent per yearin 1995-1997, although the south­bound market is less certain dueto the political uncertainty andhigh inflation. The prospects, ofthis trade are promising and aredriven by free trade policies, in­vestment deregulation and eco­nomic growth. Cargo growth isespecially strong in Central andSouth America and increased U.S.investment wiUboost U.S. exports.

Europe to Asia EastboundThis trade will be up 10 percent

in 1994 and, looking out over thenext three years, should grow an­other seven to eight percent. Themajor commodities shipped in thistrade are chemicals, reefer foodsand machinery. Eastbound vol­umes are building as Japan grad­ually rebounds - we see stronggrowth from Europe to SoutheastAsia and China.

Asia to Europe WestboundThe volume of cargo moving

westound from Asia to Europe willgrow about eight percent this yearand will continue with eight tonine percent growth through 1997,thanks in large part to the con­tinued economic recovery in Eu­rope. Westbound cargo will out­pace eastbound growth, driven bya rising Asian investment in Eu-

rope and higher demand for Asianconsumer goods, including appli­ances and electronics, apparel anddry foods.

Supply/Demand:Favorable Picture

Market growth is only one sideof the equation. The other side iscapacity. A number of carriershave announced plans to build newships, and on the surface, thispresents the potential for signif-icant capacity additions. To seethe true impact of supply and de­mand, we need to look at thesenumbers by trade. In cases wheretrade grows at a faster pace thancapacity, the supply-demand pic­ture will improve for carriers.Overall, we see a favorable picture.

Some examples: in the transpa­cific, we project annual tradegrowth at about 6.5 percent out to1997, and capacity growth at aboutsix percent. In the transatlantic,annual trade is forecast to growat better than five percent versusalmost flat capacity. In the Amer­icas, trade growth is expected atseven to eight percent, versus anincrease in capacity of just fivepercent. The Asia to Europe tradewill rise by about eight percentwhile capacity will be up only fivepercent.

Asset OptimizationWe see opportunities to take part

in attractive market growth. Thesupply/demand ratio is favorablein most markets and the economicsdo not support continued ratepressure. In fact, this environmentmay allow for rate improvement.To capitalize on these opportu­nities, we will use what we feel isa unique competitive advantagethat gives us a better understand­ing of our business than anyoneelse in the industry.

We are developing an innovativeanalytical tool that enhances ourreturns by enabling us to betteruse our assets. This tool helps usbetter understand the total costs- including opportunity costs ­for each load of cargo we carry.We call this technology the Dy­namic Yield Management System,or DYM$. DYM$ takes into con­sideration a range of importantinformation, including cargoforecasts, equipment availability,terminal capabilities, vessel de­ployments, cost structures and

rates, in evaluating the yield as­sociated with a unit of cargo.

With DYM$, we are better po­sitioned to manage our equipmentin a way that minimizes emptyrepositioning costs, reduce ourcosts with an enhanced knowledgeof the effect of each unit of incre­mental volume on our cost struc­ture, provide additional opportu­nities for "back haul" cargo,increase out system reliability and,above all, capture the greates~

yield from every container loadthat we move.. Our next step will be to tie thesesystems together to optimize cargoflows on a global basis. We areconfident that DYM$ will addsignificantly to our bottom line.

Operational EfficienciesWe have also developed another

new technology that is beginningto deliver sustainable efficienciesin our core business. Our terminalsare the nerve centers of Sea-Land.How quickly we work -our ships,how efficiently we move containersthrough the ports - these are vitalindicators of how well we run ourbusiness.

We took a hard luok at how ourterminals function. Traditionally,each functional area - gate oper­ations, yard operations, mainte­nance, and ship management ­has functioned as a separate epJ-,ity.A study showed the benefits oflinking the entire port operationto one system to achieve operatingefficiencies and speed the flow ofcargo to customers. In 1992, webegan developing the TerminalAutomation System, or TAS. Thissystem automates all major func­tions in the terminal, creates gate,yard, marine, and maintenanceefficiencies and reduces costswhile boosting productivity.

This is a key technology thatwe developed with AT&T and Mi­crosoft. Workers in all areas up­date container information onhand-held radio units, which thenfeed the information to a main­frame computer that is accessibleto all parties. Everyone knows thecurrent location and status ofeachcontainer. Our pilot of TAS inCharleston, S.C. is running well.Trucker time has been cut by 20percent, our ships are beingworked more efficiently and ourlifts per hour are at record levels.\ The long·term benefits of TAS

PORTS AND HARBORS June, 1995 17

include significant cost reductionsthrough improved productivityand better freight delivery. Thenext step is to implement TAS atour Elizabeth, N.J., terminal, androll the system out at strategiclocations worldwide in 1995-1997.With DYM$ and TAS, Sea-Landhas technologies that enhance ourreturns, are unique to the industry,offer clear competitive advantagesand position us to capitalize onmarket growth opportunities.

T.H. ChenPresident

Yangming MarineTransport Corporation

-1. In macro aspect, it will be 6.7percent growth in global linershipping for 1994. This is certainlybetter than last year's 3.7 percentgrowth. We expect the that growthrate will be more than five percentfor 1995.

a) Far East-North Americatrade: With the help of the lastingrecovery of the U.S. economy, thecargo traffic will experience anoutstanding progress in botheastbound and westbound trade.According to our sources, east­bound trade will have seen 7.2percent growth in 1994, reaching3.9 million TEUs. And we expectthe growth rate can be 6.1 percentin 1995. As for westbound trade,the growth rate will be 14.4 percentand 8.2 percent for 1994 and 1995,reaching 2.4 and 2.7 million TEUsrespectively.

From the above prospectus ontraffic, all carriers will enrollbigger capacity vessels or plan todeploy new ordered vessels intothis trade to upgrade servicequality and to try to take a biggermarket share.

b) Far East-Europe trade:Over-tonnage pressure will stillbe there in this trade. Accordingto reports, utilizations were about66 percent and 80 percent for NorthEurope/Far East trade and FarEast/North Europe trade respec-

18 PORTS AND HARBORS June, 1995

tively in 1994 and are expected toremain the same or experience aslight improvement in 1995.

c) Far East-Mediterranean: ForMediterranean-Far East trade,utilizations were about 68 percentand 76 percent in 1994 for east­bound and westbound respectivelyand are expected to be 72 percentand 79 percent in 1995 respectively.

d) Intra-Asia trade: Intra-Asiantrade continued to be the largest,fastest growing liner trade in theworld in 1994, up 12 percent to 4.4million TEUs. We expect that theannual growth rate will be 10percent in 1995.-2.We believe you may summarizethese issues from the third ques­tion below upon receipt of re­sponses from those operators youinvolved in this survey.

-3. For YML, the year of 1995will be one full of hope. YML willproceed continuously with a seriesof improvements to management,fleet, finance, etc., as well asstrengthen hardware to reach ourtarget. Following are major issuesworth addressing in 1995.

(a) Ship Orders: An order for theconstruction of five 3,604-TEUfull-container high-speed vesselshas been placed, all of which areexpected to be delivered by the endof December, 1995 (starting fromMay, 1995) and will then imme­diately join the main trade routesafter delivery.

In October 1994, YML success­fully issued Overseas ConvertibleBonds (OCB) ofUS$160,000,000 forthe portion ofthe above order fund,through which YML has achieveda more positive position in respectto fund operation.

(b) Strategic Alliances: To up­grade our service quality and saveoperating fleet and costs, jointservice remains as one of the majorbusiness strategies for YML.YML's current joint operationsare for Far East/USEC servicewith HJS and Far East/Mediter­ranean service with CMA/NYK.In 1995, the above mentioned jointoperations will last continuously.In the future, YML is open to seekcooperation with any suitablepartners in any possible trades,even in terminal and other sides.

(c) Intra-Asia Service & OtherNew Services: With the combina­tion of current Taiwan/Philip­pines, Taiwan/Indonesia and Tai­wan/Korea service, YML willlaunch a new intra-Asia service,which is .to be named "Pan AsiaService" (PAS) through vesselsharing arrangements with BULfrom January 1995. Three loadable800-TEN class ships will be de­ployed to join with BUL's two shipsand YML will offer weekly serviceon this trade route.

Meantime, YML is keepingahead to expand its service scopeby broadening its geographic ser­vice area, such as PNW service,Vietnam service and Asia-Indiasubcontinent service.

(d) Privatization: Since 1992, thegovernment has reduced its own­er~hip in the company from 99.98percent to the present 72.10 per­cent. The company expects thatthe government will further reduceits ownership in the company toless than 50 percent by the end offiscal year 1996.

(e) Merger: The government hasdecided that China MerchantsSteam Navigation Company Lim­ited (CMSNC) shall merge with thecompany. The merger program islikely to occur in the first half of1995.

(f) New YML HeadquartersBuilding: YML's own new build­ing, with 16 stories, will be com­pleted by the end of 1995. Aftercompletion, YML headquarterswill be moved into this newbuilding in a Taipei suburb.

(g) Company-Wide Quality Im­provement (CWQI): YML is alwaysconvinced that the success of anyenterprise is based on customer·satisfaction. Since 1991, YML hasbeing engaged in a long-termquality project called "Company­Wide Quality Improvement" toeffectively assure customer satis­faction. The goal of this qualityproject is to satisfy our customerswith (punctual, speedy, reliable,economical) service. Also, to un­derstand customers' requirementsdirectly and constantly, YML willconduct a global customer satis­faction survey in January 1995.

We are confident that YML willgenerate more profits in 1995 andthe coming years. And it is one stepfor YML in its plan to become oneof the leading liner companies inthe world.

At Glasgow-we've got the quay...

At Greenock -we've gotit covered...

At Ardrossan -we've gotit all tied up...

At Hunterston we'lleven lTIovelTIountains.

we can handle it.

CLYDEPORT

Down the years, Clydeport, Europe's west coast international gatewa~ has built an enviablereputation for its ability to adapt to meet the changing needs of ships and shippers.

Now, Clydeport is able to offer even more flexible and competitive services of thehighest quality.

With facilities at Glasgow, Greenock, Ardrossan and Hunterston, capable of berthing thelargest carriers afloat, plant capable of speedy cargo handling and vast storage ashore, Clydeport isunrivalled as a centre for transhipment to other parts of the UK and Europe.

So why not contact Clydeport today? You'll find us mostaccommodating.

To find out more and receive your informationpack contact:

The Marketing Department,Clydeport Operations Limited,16 Robertson Street, Glasgow G2 8DS, Scotland, UKTelephone: 0141-221 8733 Fax: 0141-2483167.

International Maritime Information

WORI.D POR,IIIE"".

BPA Chairman Mr. Green (left) and UK Customs Director Mr. Sawyer.

1. To strengthen further the co-opertionbetween the two organisations.

Signed in duplicate inLondon on 29thday of March 1995.

January 1993February 1993

- Thailand:- Indonesia:

A regional seminar on drug enforcementwas held in Tokyo at the "Mita House" ofthe Japanese Government, from 13 to 17February 1995.

The seminar was attended by representa­tives from all Asia and Pacific WCOMember Administrations (Australia,Bangladesh, China, Hong Kong, India,Indonesia, Japan, Korea, Macao, Malaysia,Mongolia, Myanmar, Nepal, New Zealand,Pakistan, Philippines, Singapore, SriLanka, Thailand, Vietnam), with theexception of Iran. In addition, expert train­ers from the Administrations of Ireland andthe United Kingdom participated. TheHong Kong RILO (Regional IntelligenceLiaison Office) was represented, togetherwith senior officials from 8 internationaltrade organizations or Japanese trade asso­ciations.

The emphasis of the seminar was on riskassessment, profiling and targeting tech­niques, and the value of informationobtained from the trade. The seminarfocussed on how such trade informationcould be obtained routinely, reliably andregularly, through programmes of volun­tary Customs/trade co-operation (theWCO's Memorandum of Understanding,or MOU, programse).

The seminar built on a number of similarin-country training seminars which theAdministration of Japan had supportedsince 1993, and which had been led by theWCO. In all, 9 such seminars had beenconducted (under the title "Alliance ofCustoms and Trade for the Interdiction ofNarcotics", or "ACTION", which is thename now given to the WCO's MOU pro­gramme). These were as follows:

Regional Seminar onDrug Enforcement

(The report, originally prepared by theWCO secretariat in Brussels, has beenmade available to IAPH throughInternational Affairs & Research DivisionJapan's Customs & Tariff Bureau:Ministry of Finance. Introduced below ispart ofthe report.)

For the BritishPorts Association

Tony SawyerChairman

For Her Majesty'sCustoms and ExciseHamish GreenDirector

3. To seek to ensure a better under­standing by ports of customs authorities'tasks and problems, and vice-versa, herebyfacilitating a productive exchange of infor~

mation between the two parties.

2. To examine and develop togetherways in which co-operation and consulta­tions between all those ports within theBPA membership and Customs authoritiescould be improved with a view to combat­ing Customs fraud, in particular drug sm­uggling.

4. To consider practical ways in whichthe ports' personnel and their agents mightassist Customs authorities in the detectionof Customs offences, in particular, thoserelating to drug smuggling.

and their users and customers.HM CUSTOMS AND EXCISE

(HMC&E) AND THE BRITISH PORTSASSOCIATION (BPA) Have Agreed

As Follows:

Anti-Drugs AllianceBetween HMC&E, BPA

This Memorandum of Understanding(MoU) is resigned to formalise co-opera­tion between the British Ports Association(BPA) and HM Customs and Excise(HMC&E), building on the good workingrelationships which already exist.

RECOGNISING that offences againstCustoms laws, particularly drug smug­gling, are prejudicial to the economic,social, fiscal and security interests of theUK and to the interests of all partiesinvolved in legitimate international trade,and that such offences may involve the useof port, transportation and cargo handlingfacilities.

NOTING that the 'continuing escalationin drug trafficking requires HMC&E toincrease their surveillance and controls.

AWARE that such increased controlscould result in additional expense and cost­ly delays to port operators,. and port usersengaged in legitimate trade.

BELIEVING that increased co-opera­tion between all those port operators withinthe BPA membership and HMC&E couldsignificantly assist in the gathering ofinformation and other aspects of combat­ing Customs offences, in particular, drugsmuggling.

BELIEVING ALSO that such co-oper­ation would be of benefit to all parties inlegitimate trade including port operators

20 PORTS AND HARBORS June, 1995

In addition, the Administration of Japanhas already pledged its support for twoseminars in Africa, as follows:

The in-country seminars have clearlybeen most valuable; since 1993, MOU pro­grammes have been introduced inIndonesia, Tanzania, Malaysia and Korea.Delegates at the 14th Session of theEnforcement Committee heard that theAdministrations of China and Pakistan hadaccorded high priority to the introductionof national MOU programmes.

Cargo Processing:Regional Drug Trends

The second day of the seminar concen­trated on regional trends in the cargo pro­cessing environment, mainly concerningdrugs trafficking but also involving casesof commercial fraud. Presentations weremade by the Delegates of China, India,Korea, Malaysia, Myanmar and Singapore,and the Delegate from the RILO in HongKong. An extremely interesting case studywas then presented by the Delegate of NewZealand.

The Delegates of Ireland and the UnitedKingdom then described risk assessmentand targeting techniques which theirAdministrations applied to cargo. Thiswas followed by presentations from the

but also offered many ways in which hisindustry was willing to assist Customs.

Closing of the SeminarThe seminar was brought to a conclu­

sion following statements from theDirector (Enforcement Division) and theChairman. The Del~gates of thePhilippines, Pakistan and New Zealand,speaking on behalf of all participants,expressed their deep appreciation to theAdministration of Japan for their hospitali­ty, friendship, and outstanding seminarorganization. The seminar had, they said,been exceptionally successful and educa­tional. It had also been memorable, withthe establishment of many new friendshipsand the strengthening of an information­exchange network.

It was agreed by Delegates that the sem­inar would only prove to have been valu-

RecommendationsThe Chairman led a discussion on the

final day of the seminar, summarizing thepresentations which had been made duringthe week. The seminar's findings. wererecorded in a Recommendation, which wasaccepted and approved by all Delegates.

Visit to Yokohama CustomsThe fourth day of the seminar comprised

of a visit to Yokohama Customs. After aninitial briefing by senior enforcement offi­cers, Delegates had the opportunity towatch a drug detector dog at work, and tosee a mobile X-ray van in operation. Thevisit, which included a luncheon hosted bythe Deputy Director General, YokohamaCustoms, was very much appreciated byall Delegates.

weO/JAPAN Regional Seminar on Drug Enforcement Feb. 13-17 1995 Tokyo.

Hong Kong RILO and the Chairmanregarding exchanges of information, bothwithin the region and between regions.

Customs/TradeCo-operation via MOVs

The Chairman began the third day of theseminar with a lengthy presentation on theWCO's ACTION programme, tracing itsprogress since MOUs were first concluded(at national and international levels) in1995. Each Delegate received a copy ofthe WCO's video and brochure whichexplained, in an extremely effective man­ner, the benefits behind MOU pro­grammes.

National experiences with MOU pro­grammes were described in fascinatingpresentations made by the Delegates ofAustralia, Ireland, Japan, Korea, Malaysia,New Zealand, Pakistan, Sri Lanka and theUnited Kingdom. These were supportedby equally interesting and positive presen­tations made by the Representatives fromthe International Association of Ports andHarbors (lAPH), the Scheduled Airlip.esAssociation of Japan, the JapaneseShipowners Association, Japan CustomsBrokers Association, and Japan AircargoForwarders Association.

This section of the seminar was com­pleted by a presentation by theRepresentati ve from the Conference ofAsia/Pacific Express Carriers (CAPEC).This included a proposal for 2 extensionsto the WCO's Express ConsignmentGuidelines: the application of Guidelinesprinciples to commercial fraud, and theconvergence of official controls. His pre­sentation outlined the expectations whichthe air express industry had of Customs,

April 1993April 1993

June 1993June 1993April 1994April 1994December 1994

June 1995June 1995

- Lesotho:- Bostswana:

- Kenya:- Tanzania:- Malaysia:- Korea:- China:- Philippines:- Pakistan:

Passenger ProcessingRegional Drug Trends

The first day of the seminar was devotedto a discussion on current regional drugtrends in the passenger processing environ­ment. Extremely interesting presentationwere made by the Delegates ofBangladesh, Hong Kong, Indonesia,Pakistan and Thailand, and the Delegatefrom the RILO in Hong Kong. TheDelegate of Australia described a casestudy relating to passenger controls, andthe availability of access to trade informa­tion.

Examples of modern risk assessmentand targeting techniques were then present­ed by the Delegates of Ireland, Japan andthe United Kingdom.

PORTS AND HARBORS June, 1995 21

able if the Recommendation was imple­mented within the region. To that end, itwas agreed that it would be extremely use­ful if, at some future date, a further semi­nar be held to assess implementation of themeasures contained in the Recom-menda­tion.

Int'l Standards HelpTransport People, Goods

This article first appeared in the April1995 edition of ISO Bulletin, a monthlypublication of ISO (InternationalOrganization for Standardization). ISOCentral Secretariat, Geneva, Switzerland.Tel. + 41 22 74901 11. Fax + 41 22 7333430.

World Standards Day is marked jointlyon 14 October each year by the majorinternational standardization bodies, ISO,the International Electrotechnical

.Commission(lEC), and the InternationalTelecommunication Union (lTU).

WSD is celebrated worldwide, with eachnational member body organizing activitiesand functions in own way, according to theyear's theme, which for 1995 is particular­ly broad: A world on the move ­International Standards help transportpeople, energy, goods and data.

No area of standardization better illus­trates the immediate effects and advantagesof international agreements than that oftransportation.

Moving materials and products safelyfrom points as far apart as Amsterdam andBangkok, International Standards ensure asmooth an speedy passage from a temper­ate climate to a tropical country. Fromtruck to train, from boat to plane, goods aresheltered during transit by ISO freight con­tainers around the globe. To make it work,International Standards are heeded: stand­ards for physical interchangeability,strength requirements, identification meth­ods, standard fork lifts, etc. Says aninternational expert in the field of inter­modal transport: "Only ISO could handlesuch a complex standardizing task of mov­ing within the same vessel: refrigeratedfoods or flat steel plates, hazardous liquidchemicals or ladies' garments, grain inbulk or Michelangelo's statue of thePieta".

The movement to build and maintain aset of International Standards for the auto­motive industry itself has also been aprominent feature of the standards work ofISO and IEC, ranging from dimensional

22 PORTS AND HARBORS June, 1995

standards for wheels, piston rings, graphi­cal symbols on dashboards, test methodsfor measuring noise, to batteries and elec­trical safety.

Equally important are compatible world­wide facilities to ease the movement ofpeople and communication. Today, thereare International Standards for credit cards,electronic transfer of information in stand­ard formats (e.g. bills of lading, invoices),for the transmission and storage of docu­ments in any language, protocols for com­puter and network systems and satellitedishes for optical fibres and television.Passports can now be machine-read, speed­ing passengers through customs, and stan­dards for prams and strollers contribute toa safer transport of babies.

Whether containers or transport vehi­cles, electronic imagery or telecommunica­tion systems, standardization experts don'tsit back and rest on past achievements:much work is in the pipeline to take intoaccount new technologies and public con­cern regarding safety and environment.

Trade, business and standards partnersare now moving full steam ahead on manynew programmes to reach internationalagreements in a changing environment oftransport practices. Issues addressedinclude such varied fields as traffic infor­mation and control systems on roads, reli­able communication between heteroge­neous computer systems, new materialsfor wheels and rails and improvements inthe rail car structure, worldwide air trafficcontrol systems using satellites and largeoptical fibre communication systems.

Marine Industry '95In nanjin Sports Center

The 1995 China International Exhibitionon marine technology, shipbuilding, portconstruction and affiliate facilities and ser­vices will be held from September 5 toSeptember 9 at Tianjin Sports Center,Tianjin, China.

The ORGANIZERS of the exhibitionwill be the China Chamber of InternationalCommerce, the Tianjin Chamber ofCommerce, the China Council for thePromotion of International Trade (CCPIT),and the Tianjin Sub-Council.

Its SPONSORS will be the Ministry ofCommunication, the Ministry of MachineBuilding Industry, the China StateShipbuilding Corporation (CSSC), theTianjin Municipal Commission ofCommunications, and the Port of TianjinAuthority.

The HOST of the show will be theTianjin International ExhibitionCorporation (TIEC).

Telex: 23261 CCPIT CNPhone: 022-3301367 - 71Fax: 022-3301344

Electronic Commerce:A Giant Step Forward

A meeting in San Francisco has com­pleted the first stage of harmonisinginternational guidelines for commercialUN/EDIFACT messages for use in themaritime industry.

The meeting which had the support ofthe Chairman of WP.4/GE.1 (Mr. RayWalker) and the Rapporteurs was spon­sored by:-

ISA - Information Systems Agreement- a grouping of major ocean carriers;

ICS - International Chamber ofShipping, and

TCIEG - Transportation CommunityInformation Exchange Group (Port andCargo Community Organisations).

The meeting was convened followingdiscussions at the September 1994 meetingof UNIEDIFACT Joint Rapporteurs Teams(JRT) in Vienna. Its objectives were toagree recommendations for harmonisingvarious implementation gUidelines alreadydeveloped for transport messages in coun­tries around the world.

Technical and business experts fromWestern Europe, United States, Asia andAustralia representing organisationsinvolved in maritime transport EDI, metfor four days at the Oakland offices ofAmerican President Lines. The meetingwas chaired by Barry Keogh of TradegateAustralia, who is also Co-Chair of theTransport Work Group at the JRT meet­ings. Pascale Herman of the Port of LeHavre Authority was also a participant rep­resenting the port community and TCIEG.

The meeting has achieved agreement onthe stable usage of segments and elements,and the choice of Directory for implemen­tation. This will create a climate for easierimplementation and clear the way for therapid take-up of UNIEDIFACT in interna­tional EDI. The resultant HarmonisedInternational Guidelines will also encour­age re-assessement of current businesspractice and contribute to increased effi­ciency in the maritime transport sectorthroughout the world.

Recommendations were finalised for theInternational Forwarding and TransportMessage (lFTM) set which include the

Firm Booking, Booking Confirmation,Forwarding Instruction, Contract Status(Waybill) and Arrival Notice, as well asthe IFCSUM (INternational Forwardingand Consolidation Summary) message.

It was agreed that all guidelines for mes­sages in this group would be completed inthe format of the D.94E Directory, not tobe reviewed before January 1997.Subsequent guidelines for other messages,including those not appearing in the D.94BDirectory, should be completed in the lat­est available Draft Directory at the time ofproduction.

Decisions were reached on the forwardplan to develop implementation guidelinesfor Container Handling for both sea andland-side operations.

These recommendations will be consid­ered and ratified at the forthcoming JRTmeeting in Sydney, Australia in April1995. Prior to that meeting a number ofdraft papers will be distributed for consid­eration by interested parties. HarmonisedInternational Guidelines documents for theIFfM set and IFCSUM messages will bedeveloped after that meeting, to be ratifiedin September 1995 at the subsequent JRTmeeting and published in December 1995.

The strong support shown by thoseorganisations represented underlines theessential need for all parties with an inter­est in implementing EDI, now or in thefuture, to become involved in the develop­ment and implementation process at theearliest possible time.

Andrew Robertson, member of theTCIEG and the CEO of Tradegate which isAustralia's Trade Community servicescommented that "this is probably the mostimportant news to hit the UN/EDIFACTEDI world since its inception back in 1988.Tradegate and our colleagues in a numberof Community based services around theglobe have been pressing for this develop­ment for a number of years in recognitionof the fact that without such agreement theprogress ofEDI will continue to be slow".

Seaport DevelopmentConference in London

The Waterfront Conference Company isorganising a two day conference 01-12

July 1995) to assist the financial and portindustries on financing new port infrastruc­ture and superstructure development withina public policy framework. The confer­ence will be held in the Langham HiltonHotel, London.

The increasing need to upgrade anddevelop the seaport facilities of majorEuropean countries has led to an examina­tion of the funding methods available. Themove by many European Governments toencourage the private sector to take-on thisfinancial burden has led to the develop­ment of new financing initiatives.

The conference examines the differentfunding sources (both traditional and inno­vative) currently on offer to the industryand invites discussion from the audienceon the most attractive and workable meth­ods.

Key speakers include:Fernand Suykens, Chairman, European

Sea Ports OrganizationThe Viscount Goschen, Minister for

Aviation and ShippingProfessor Richard Goss, Department of

Maritime Studies and InternationalTransport, University of Wales

Andre Bollen, Vice-President, FEPORTAlastair Channing, Deputy Managing

Director, Associated British PortsDr Enrico Ravano, Chairman, The

Contship GroupFor further information, please call

The Waterfront Conference CompanyLtdChurchill House, 136 BuckinghamPalace Road, London, SWIW 9SATelephone: + 44 (0) 171 7300410Fax: + 44 (0) 171 7300460

Guide to Port Entry 1995/96Edition

Ed. by Robert Pedlow. 2 Vols. Reigate,UK: Shipping Guides Ltd., 1995. 1,748pages. Diagrams and plans. Indexes. Orderfrom: Shipping Guides Limited, 75Bellstreet, Reigate, Surrey RH2 7AN,England. Tel: 011-44-737-242. 255/6/7.Fax: 011-44-737-222-449. Price UK only£205; outside UK £215, includingpostage, discount is available on bulkorders.

This monumental directory providescomprehensive and highly detailed infor­mation on some 2,400 ports, large andsmall, throughout the world, from Albaniato Zaire. The text is arranged alphabetical­ly, by country and port.

Port-specific information typicallyincludes descriptions of port limits, vessel

documentation, pilotage requirements,anchorage, vessel restrictions, tugs andtowage, health regulations, radio and VHFcommunications facilities and procedures,radar, and medical services and facilities.

Further details is provided as toberthing, cranage, bridge clearances, shiprepair, stevedoring services, fresh waterand bunker services, fire precautions, watersalinity, customs allowances, and variousamenities for visiting merchant seamen.

Also listed are foreign consulates, air­ports, holidays, ship supply services, andaddresses and other contact information forlocal port authorities.

Coal Shipping and Costs:Sea Transport Logistics,Traffic Patterns, TradeProspects, InfrastnwctureConstraints and Freight Costs

Seaborne coal trade - the dry bulk mar­ket phenomenon of the 1980s and early1990s - looks set for a further dramaticexpansion. 1995 may turn out to be a piv­otal year as demand from coal users comesup against supply-side constraints. Thefact that several key contracts covering thecurrent year - which in recent years wouldhave been signed and sealed virtually bythe turn of the year - have still to be agreedas the end of the first quarter looms showshow far the tide has swung in favour of thecoal suppliers.

The momentum, yet again, lies with thesteam coal sector and, geographically, withthe rising tide of demand from countries onthe Asian Pacific Rim. In contrast, thecoking coal sector, which reacts todemands from integrated, blast furnaceroute steelmakers, will largely hold itsground.

Historical and Potential SeaborneCoal Trade(Million tonnes)

1970 1990 1993 1996 2000

Steam20 204 237 318

Coal177

Coking84 162 159 178 187

Coal

Total 104 339 363 415 S05

Source: Drewry Shipping Consultants- "Coal

Shipping and Costs".

By 2000, it is expected that Japantogether with the Other Far EastlAsiaregion will be accepting over 150 million

PORTS AND HARBORS June, 1995 23

tonnes of steam coal by sea - almost halfof the anticipated global seaborne traffic.Potentially this share could be even higher­as much will depend on the pace of importsubstitution seen in Germany. TheGerman position will mark one of the key"swing factors" as the political battlebetween the currently protected domesticmining interests and the anti-subsidisationfactors within the EU works itself out.

For coking coal, no radical moves areenvisaged although factors such as electricarc steel making preferences, changingcoke rates (the amount of coke needed toproduce pig iron) and the used of pul­verised coal injection will be influential.

Clearly, 1995 should see the start of aperiod of coal price increases - thoughproducers may claim that these have yet toreach the point of being "real" gains due tothe combination of price concessionsforced in recent years and currency parityrate shifts - but a further emergingprospect which will impact on the globaltrading pattern is a rising trend in underly­ing shipping costs. Given also that a goodproportion of the elderly units (especiallyin the Cape size sector of the fleet) that arestill being employed at present surely can­not see out the decade, shippers will needto get used to the idea that the market'stypical vessel has not just to cover its (ris­ing) operating costs but will have to makea capital contribution.

However, in terms of the shipping andtrade equation, the key question must be ­if costs and freight rates rise, how much

. scope is there for producers to cut back fobprices? The answer may well hold the keyto the identification of the coal market'sswing suppliers.

Vulnerable trade sectors - i.e. those withleast scope for cutting fob prices if freightcost rises clash with price resistance at thecif position - must incorporate the longesthaul routes barring any, currently unfore­seen, rapid port upgrading and large scaleshipping switch into the 200,000+ tonnesector. Australia to North West Europetraffic must head the vulnerability list.Some concern must attach also to cargoesworked from the Eastern USA to the FarEast. Historically, the USA has shownresilience and, as a consequence, has builtup a position as the trade's primary swingsupplier. Whether this position will holdthrough the late 1990s and beyond is lesscertain, especially as needs focus less oncoking grades and attention is refocuseddomestically in line with the US Clean AirAct.

South Africa is best sited geographically

24 PORTS AND HARBORS June, 1995

to function as a swing supplier though itmight not achieve this for all coal grades.The other possible contender, again in thesteam coal sector, is Indonesia. The mainquestion here, though, is how much poten­tial can be realised in practice.

If the coal trades do readjust into moregeographically regionalised sectors, thekey concern felt by the dry bulk fleet willbe the potential for any reduction in tonne­mile (or tonne-kilometre) requirements. Ifthis occurs, then fleet replacement needsmay prove less than currently envisaged.

Coal Shipping and Costs: SeaTransport Logistics, Traffic Patterns,Trade Prospects, InfrastructureConstraints and Freight Costs assesses theprospects for international seaborne coaltrade through to 2000 as well as setting thecoking and steam coal sectors in their his­torical context. In addition, the Reportprovides an in-depth appraisal of the seatransport and shipping of coal and the eco­nomics of seaborne coal shipping.

Coal Shipping and Costs: SeaTransport Logistics, Traffic Patterns,Trade Prospects, InfrastructureConstraints and Freight Costs can beobtained, price £385, from DrewryShipping Consultants.

Drewry Shipping Consultants11 Heron Quay, London E14 4JF

Tel: 0171-5380191Fax: 0171-987 9396

Port and Maritime Guide ofSpain

The users of the maritime transport,exporters and importers, can have fromnow on a manual with the largest informa­tion on services of the Maritime Transportand the Spanish Commercial Ports.

With the edition of this Handy Guide,the communication consultant, Marge, tryto facilitate the access to the services thatthe firms, which work in the port and mar­itime sector, give; and at the same time putat the disposal of the users, national andinternational, the updated informationabout all the technical and logistics charac­teristics on the Spanish Port System.

Port to portOrdered by activity sectors, and through

the 27th big Spanish commercial ports, thePort and Maritime Guide of Spain hasdirectories with entries of 6,000 firms andinstitutions (port authorities, shipowners,freight forwarders, ship's agents, steve­dors, cargo terminals, etc.) which partic-

ipate in the port and maritime transportlogistic, as well as those other companiesthat, since any point of the national geo­graphic, give specialized services (consul­tants, insurance firms, environment protec­tion, telecommunications, etc.).

Port to port, the Guide describes withdetail the main technical characteristics ofthem (commercial uses, general services,special installations, equipment for loadingand unloading, ...), traffic statistics anddescription of their regular lines. Thiswork allows also to acceed to the informa­tion about free zones, logistic activity cen­ters (LAC), services related to the inter­modal transport, and national and interna­tional organizations related to the sector.

International projection

This bilingual edition, Spanish-English,provides for the first time to the Spanishport system with a media which will allowto the users and foreign operators to acceedto a global and detailed vision.

MARGEAvenida Diagonal, 541, 3. 0

08029 Barcelona (Espana/Spain)Tel. 34-3-419 60 41 - Fax 34-3-405 22 58

North Fraser Policy forSafe Transport of Goods

The North Fraser Harbour Commissionhas adopted a new policy for shippingcommodities, announced David Silver,Chairman. The policy, developed by theFraser River Estuary ManagementProgram (FREMP), established proceduresfor the safe transport of commoditiesthrough and within the Fraser River estu­ary.

"The purpose of this policy is to set ahigher standard of care for the shipment ofall commodities," said David Silver. "Thepolicy recognizes the sensitive nature ofthe Fraser River estuary and recommendsactivities to lessen the risk of spills intothese sensitive estuarine environments."

Policy recommendations include:1. A spill risk analysis of all commodi­

ties shipped through a terminal facility,including a review of alternatives to ship­ping the commodities through the estuary,be conducted. The analysis should evalu­ate key risk factors including the packag­ing type, shipping procedures and the navi­gational hazards.

2. A scenario based EmergencyResponse Plan (ERP) for land based andvessel based shipping operations.Development of the ERP should be basedon worst-case spill scenarios developedfrom the risk assessment and will includespill countermeasures for each commodity.

3. Copies of draft ERPs should be sub­mitted to FREMP and its member agen­cies, the Canadian Coast Guard 'and theadjacent municipality for review and com­ment.

"This new policy is part of our continu­ing efforts, in coordination with FREMPand other agencies, to protect the sensitiveecology of the North Fraser river," saidSilver.

Japan Remains LeadingMarket for US Exports

More than 921 million metric tons ofcargo carrying a value of $517 billion wereshipped by sea in 1994 between the UnitedStates and approximately 230 countriesand territories around the world - literallyfrom Afghanistan to Zimbabwe.

However, 25 countries accounted for78.3 percent of America's 1994 seatradeby volume and 81.7 percent of it by value.In fact, just five - Venezuela, Japan,Mexico, Canada, and Saudi Arabia­accounted for 40.2 percent of total ton­nage. Similarly, 46.1 percent of the dollartotal came from U.S. trade with Japan,China, Taiwan, Germany, and SouthKorea.

Ranking first among America's tradingpartners in 1994 in cargo volume wasVenezuela with 87.2 million tons, or 9.5percent of the US. total. Japan stood firstin the value ranking-$120.6 billion, whichequates to a share of 23.7 percent.

Japan was also the world's leading mar­ket for U.S. exports both by volume (67.2million tons) and dollar value ($31.1 bil­lion) and also ranked first in the value ofU.S. imports with a total of $89.5 billion).Venezuela led in import volume with 82. 7million tons.

While Japan remains America's domi­nant trading partner by sea in mostrespects, tonnage has dropped substantiallyover the past five years. Last year's vol­ume was down 5.1 percent compared to1993 and 10.3 percent compared to 1990.

That contrasts with the mushrooming ofUS. sea trade elsewhere - with China (up13.0 percent in volume compared to 1993),Eastern Europe (+14.9 percent), ASEAN ­the Association of Southeast Asian Nations

(+19.7 percent), and the member nations ofthe European Free Trade Association(+41.9 percent).

Some of the most spectacular gains inAmerica's seaborne trade volume werewith Canada (+10.4 percent) and the LatinAmerican nations of Argentina (+22.8 per­cent), Brazil (+20.1 percent), Chile (+58.0percent), Mexico (+14.3 percent), Panama(+21.5 percent), Paraguay (+32.9 percent),and Uruguay (+81.4 percent).

Last year's figures also reveal a substan­tial rebound in U.S. trade with WesternEurope, with increases compared to 1993of 12.3 percent in cargo tonnage and 11percent in value.

Other areas of growth were North Africa

I(+2.4 percent), the Caribbean (+ 1.8 per­cent), and Sub-Saharan Africa (+1.7 per­cent). The 11.4 million tons of goodsexchanged by sea in 1994 with CentralAmerica, though down 20.2 percent from1993, remained higher than any prior yearof the decade and exceeded the 1989 cargotonnage total by 61.8 percent.

Trade with the nations of the formerSoviet Union has eroded substantially overthe past five years, with 1994 volumedown 34.1 percent from 1993 and 43.7percent below its 1990 level. Declines oflesser magnitude are also evident in U.S.trade with the Near East and Australasia.

Other 1994 seaborne trade highlights:• Dominating the tonnage category,

not surprisingly, were major oil exportingcountries - Venezuela, Mexico, SaudiArabia, Nigeria, and the United Kingdom.

• The leaders in value of seabornetrade were industrialized or emergingindustrialized countries such as Japan,China, Taiwan, Germany and South Korea.

• America's NAFTA partners - Canadaand Mexico - together generated 135.8million tons of waterborne cargo (15.2 per­cent of the US. total) valued at $20.4 bil­lion (4.3 percent).

• Central and South America accountedfor 165.4 million tons (18 percent of theU.S. total) and $49.6 billion (10 percent).Foremost among America's Latin tradingpartners were Venezuela, Mexico, Brazil,and Colombia.

• U.S. seaborne trade with the Carib­bean Basin amounted to 31.8 million tonswith a value of $10.9 billion. MajorCaribbean trading partners were Jamaica,Trinidad & Tobago, the Bahamas, theNetherlands Antilles, and the DominicanRepublic. (AAPA Advisory)

Long Beach No.1 NorthAmerica Container Port

In 1994, for the first time ever, the Portof Long Beach emerged as the top rankedNorth American container port based ontotal TEU throughput. Others among thetop five were Los Angeles, New York/New Jersey, San Juan, and Oakland.

The leading Canadian ports wereMontreal, Vancouver, and Halifax, whileVeracruz stood first among the ports ofMexico. The top 25 ports are listed belowtogether with corresponding data for 1993.

North American ContainerPorts - 1994

Ranking by TEUs

1994 1994 1993

Rank Port TEUs TEUs

1 Long Beach 2,573,827 2,079,491

2 Los Angeles 2,518,618 2,318,918

3 New York/New Jersey 2,033,879 1,972,692

4 San Juan 1,533,592 1,559,421

5 Oakland 1,422,800 1,244,600

6 Seattle 1,414,000 1,151,405

7 Tacoma 1,027,928 1,074,558

8 Charleston 897,480 802,821

9 Hampton Roads 894,066 786,023

10 Montreal 728,799 598,120

11 Houston 579,868 541,497

12 Savannah 562,266 563,303

13 Baltimore 530,643 487,772

14 Miami(fy) 509,687 572,170

15 Vancouver (BC) 493,843 434,004

16 Jacksonville (fy) 480,616 463,516

17 Honolulu(fy) 435,658 442,748

18 New Orleans 378,334 n/a

19 Anchorage 333,138 275,578

20 Portland (OR) 317,961 239,439

21 Halifax 311,097 300,933

22 Veracruz 255,879 193,862

23 Port Everglades (fy) 251,743 226,674

24 Boston 169,595 152,240

25 Palm Beach (fy) 163,248 158,762

fy=jiscal year Source: AAPA survey(AAPA Advisory)

Errol Bush ElectedChairman of AAPA

The director of ports for the PortAuthority of the Cayman Islands, Errol L.

PORTS AND HARBORS June, 1995 25

Bush, MBE, was elected as the newChairman of the Board of the AmericaAssociation of Port Authorities (AAPA) onMarch 22, during AAPA's Annual SpringConference in Washington, D.e.

Mr. Bush is second Caribbean port offi­cial in AAPA's 87-year history to becomechairman of the board of the AAPA. Thefirst Caribbean delegation chairman wasJan Oenes of Curacao Ports Authority,Netherlands, Antilles, from 1970 to 1971.

Mr. Bush officially becomes Chairmanthis fall, during the Association's 84thAnnual Convention, scheduled for October16-20, 1995, at the Sheraton New Orleansin New Orleans, Louisiana. He will suc­ceed as AAPA Chairman of the BoardDavis Helberg, executive director of theSeaway Port Authority of Duluth.

"I look forward to working with AAPAmembers of all delegations. My prioritiesas chairman will include extendingAAPA's educational programs to theCaribbean. I also look forward to seeingthe Professional Port Manager (PPM) cer­tification program develop and growamong Caribbean ports to become the truemark of the excellence for port managers,"said Mr. Bush.

Home Depot's NewFacility in Savannah

Georgia Governor Zell Miller hasannounced that The Home Depot will opena new import distribution facility inSavannah, creating more than 300 newjobs and bringing a $70 million capitalinvestment to Georgia.

In his official announcement fromGeorgia Ports Authority headquarters inGarden City, Governor Miller praised theAtlanta-based company as "a great exam­ple of home-grown Georgia enterpreneur­ship."

Founded in 1978 in Atlanta, The HomeDepot is North America's largest homecenter retailer. Across the United Statesand Canada, the company operates 350home centers with more than 70,000employees. Gross sales for fiscal year1994 were in excess of $12.4 billion.

"Three years ago, we began to investheavily in our ports because we knew thatthey are crucial to Georgia's success ineconomic development," said GovernorMiller. "The Home Depot's decision tolocate a new import facility in Savannah isexactly the kind of results we were looking

26 PORTS AND HARBORS June, 1995

for."Through its FOCUS 2000 program, the

GPA has invested more than $100 millionfor facility construction, equipment pur­chases and improvements to the SavannahHarbor since 1991. This investment wasone of the main reasons cited for HomeDepot's decision to locate in Georgia overseveral other southeastern cities, includingCharleston, S.e.

The Savannah distribution center will bebuilt near the Savannah port on a 325-acresite in the Crossroads Business Center.The site, adjacent to Interstate 95 and theSavannah International Airport, is servedby both CSX and Norfolk Southern rail­roads. Additional acreage at the GeorgiaPorts Authority's Garden City Terminalwill be designated for the company'sexclusive use in marshaling containers on­port.

The center will have an estimated annu­al impact of more than $22 million on thearea economy, boosting the number ofcontainers being imported through theGPA terminal by 30,000-40,000 per yearand likely creating another 450 to 600 jobsin the service, transportation and retail sec­tors, according to Raymond D. Wood, ananalyst with Savannah Electric and PowerCompany.

"We're obviously very pleased by theresults of the selection process undertakenby The Home Depot," commented GPA

, Executive Director Doug J. Marchand."There is much work ahead to ensure amutually rewarding and longstanding rela­tionship and we are pursuing those taskswith vigor."

"This new facility is crucial to thegrowth of our company as we add morethan 500 stores during the next five years,"said Marcus. "It will ensure that we cancontinue to provide our customers with abroad selection of quality products."

"The state's foresight and commitmentto expanding the port in Savannah allowedus to locate our new distribution center inou-r home state of Georgia," Marcus con­tinued. "This was a very competitive situ­ation and Georgia worked hard to earn ourbusiness."

Louisiana, Panama WorkOn Long-range Plans

With the Panamanian government set toassume ownership and management of thePanama Canal in the year 2000, the Port ofNew Orleans and the government of Pana­ma are taking steps to better prepare

Panama to assume its role as a major forcewithin the world's maritime community.

The Port of New Orleans, the Port ofSouth Louisiana an the Panamanian gov­ernment, through its national port authori­ty, recently entered into an agreement thatcreates a long-term strategic link betweenLouisiana and Panama. Through theagreement, the two area port authoritiesand the Panamanian government will workjointly on long-range plans, programs andprojects designed to enhance Panama'smaritime and economic future.

The agreement signed by Richard J.Clements,executive director of the Port ofSouth Louisiana; 1. Ron Brinson, presidentand chief executive officer of the Port ofNew Orleans; and Ruben Reyna, actinggeneral director of the National PortAuthority of the Republic of Panama wasratified during a formal ceremony inPanama Jan. 17.

"Our new relationship with the Panama­nian government puts us in a unique posi­tion to tie U.S. and, particularly, Louisianacompanies to the tremendous opportunitieswhich exist in Panama," Brinson says.

(Port ofNew Orleans Record)

Port of Redwood City:Tonnage on Record Pace

The Port of Redwood City enjoyed a 41percent increase in tonnage for the first sixmonths of the Fiscal Year 1994-95. Thetonnage was 362,228 tons, on course forthe best annual tonnage mark in more than15 years.

Tonnage for the first six months of FY1993-94 was 213,404. Tonnage for all ofFY 1993-94 was 499,000.

Interim Executive Director Michael J.Giari reported major increases in steelscrap metal exports, up 53 percent to153,941 tons for the first six months ofFY1994-95; gypsum rock imports, up 108percent to 135,459 tons; and cement, up37.5 percent to 20,200 tons.

Giari said the Port accommodated 16bulk ships for the first six months, com­pared with nine for the comparable periodin 93-94.

The Journal of Commerce reported in arecent edition that the Port of RedwoodCity was the fourth largest Port in the U.S.in steel scrap export for the month ofOctober 1994, behind only New York,Philadelphia and Boston. The Octobersteel scrap exports at the Port of RedwoodCity totaled 34,965 tons. 'Sims-LMCprocesses approximately 270,000 tonsannually offerrous metal at the Port of

Redwood City, primarily from recycledautomobiles. (Currents)

Direct Train ServiceBetween LUte, Le Havre

In early May, the Port of Le Havre andthe River Port of Lille (external departmentof the Chamber of Commerce and Industryof Lille-Roubaix-Tourcoing) will be linkedup direct by a block-train. The creation ofthis service meets various requirements:

- For both ports, it makes it possi­ble:

* to assert a will to set up rapidly a net­work of inter-regional trade collection,

* to meet the requirements of importers,exporters and shipping lines.

- More specifically speaking, forthe river port of Lille, the objective isto:

* develop the part it plays as the multi­modal logistic hub of the North-Pas deCalais Region,

* carry on its active intermodal policy atthe service of the various partners,

* be linked to one of the leader Euro­pean ports.

- for the Le Havre's port, the cre­ation of this service meets:

* the demand expressed by port cus.,tomers

* the will expressed by the Port of LeHavre to reorganise the structure of itscommunication network with its hinter­land, especially towards the North-Pas-de­Calais region (first exporting region andthe second French exporting region),which accounts for a not enough signifi­cant part of the flows of cargo transitingthrough the Le Havre port marketplace.

Following the conclusion of the localstevedoring agreements in July 1994,which made it possible to improve the pro­ductivity and reliability of port services butalso to restore confidence among shippers,the ports of Le Havre and Lille thought itwas the right time to create this tool torecapture trades. Thus, within the frame­work of a partnership and with the activesupport of SNCF and CNC, both Frenchports decided to offer the following ser­vices as from early May:

• two return trains per week,• a first-class quality services overnight:

* departure evening Day A,* arrival morning Day B,

• a transport offer available to and fromthe Le Havre terminals (Bougainville,Europe, Asia and Pacific) or from th Lillemulti modal platform (Lille ContainerTerminal).

• a service organised by the river portof Lille which perfectly knows the regionand the customers of the North-Pas-de­Calais Region.

This train must rapidly prove to be a realopportunity for Le Havre port to face thecompetition of the ports in the North­European range, especially Antwerp andRotterdam.

Biggest ContainershipCalls In at Le Havre

Mitsui aSK Lines (MOL) have justtaken delivery of their last containershipwhich is not the least. ..as it is so far thebiggest in operation in the world! She is·called "MAAS" and was constructed byIHI shipping yards in Japan to whom shehad been ordered in June 1993; a sister­ship is due to be delivered next May bythese very yards.

The characteristics of the "MAAS", anoverpanamax containership are impressive:

Deadweight tonnage: 62,905 tonnes,Length: 300 m,Width: 37.10 m,Draught: 13.03 m,TEU capacity: 4,700.

On March 1st, 1995, the Mitsui JapaneseShipping Line joined the Nedlloyd andMISC shipowners now forming the"Alliance" consortium on the route fromEurope to the Far East, and Mitsui alsohire slots on board their ships to theAmerican shipping line, APL: let's statethat "Alliance" vessels call in at Le Havreeach week on import and export, that istwo weekly calls.

The "MAAS" sailing from Southamptoncalled in at Le Havre on March 20th, at the"Americas Quay" having SMART asagents, the stevedore being GMP. Afteroperating 727 container moves, the

."MAAS" got under way bound forSingapore. With this call, the Port of LeHavre is strengthening its natural calling toreceive the biggest containerships, whatev­er the day and time!

New LoadnglUnloadingSystem at Goteborg

A new loading/unloading system forports was demonstrated in test-bed formrecently at the Port of GOteborg. The sys­tem, called Alicon for Air-LIft CONtainers,is currently being tested in Gotegborg'sAlvsborg harbour.

The Alicon system has been developedby Thornycroft, Giles & Co., Inc ofWashington, D.e., USA. The company isa partner in the test of the system togetherwith Volvo Transport Corporation and thePorts of Goteborg, Sweden and Zeebrugge,Belgium.

The partnership wants to test the Aliconideas on a full scale to gain experience forthe future. The 65-metre-long test-bed inthe Alvsborg roll on/roll off harbour isequipped with gradients, curves, differentsurfaces, and a switch.

The Alicon system is based on platformshovering on air-cushions. The platforms,loaded in advance with up to four twenty­foot containers each, are coupled togetherlike a train and pushed across the terminalarea and a loading ramp into a speciallyequipped roll on/roll off vessel. A truck orlocomotive is used to push or pull the plat­forms and also provides the compressed airfor the air cushions. Supporting rails builtinto the terminal, the ramp and the vesselguide the platforms.

The demonstration at Goteborg was apeep into the testing acti vities rather thanthe launching of a solution. One vulnera­ble detail has been the rubber bellows thatcreate the air cushions. Each platform, beit the container or the trailer version, hasfour of these bellows. One of these bel­lows was damaged during the demonstra­tion but was replaced within two minuteswith the airflow still on.

The Alicon system has an impressivecapacity. It could load and unload up to2,000 twenty-foot equivalent units in twohours. Alicon had been developed tomatch the capacity of a special kind offreight vessel, also conceived byThornycroft Giles. Called FastShips, thesevery fast freighters travel at 40 knots on afull load. There are deep-sea and short-seaversions of FastShip, both propelled bywater jets.

The Ports of Goteborg and Zeebruggehave decided to be active in the testing ofthe Alicon system. There is a considerableinterest, some would say pressure, fromSwedish industry to bridge the distancehandicap of the Scandinavian countries ina radical way. The two ports have takenthe initiative of the test to speed up the

PORTS AND HARBORS June, 1995 27

World's Longest Quay Getting Even Longer.

One ofair cushions supporting an Alicon container platform is visible in this photgraph.To the right is the guiding rail.

KPA Signs CooperationPact With Hamburg

(Port Times)

Dublin: Irish RecordFor Freight Throughput

Almost a year after signing the protocolof cooperation between it and its SouthAfrican counterpart, the Portnet, the KenyaPorts Authority (KPA) fulfilled anothermilestone in the strengthening of inter-

Figures just released show that DublinPort holds the Irish record for freightthroughput at any commercial port in theRepublic for the second successive year.At 9.5 million tonnes in 1994, this repre­sents an increase of 12.5% over 1993 fig­ures which were then the highest everrecorded in the Republic. They are alsoapproximately 28% higher than the figuresfor its nearest multi-model competitor.

Commenting on the results Dublin PortChief Executive, Enda Connellan, said hewas optimistic that further increases couldbe achieved in 1995 which would bringDublin Port throughput past the 10 milliontonnes mark.

He also added that new investment inRo/Ro terminal facilities would greatlyincrease capacity in this mode.

"Irish Ferries will introduce a newJumbo passenger/freight ferry in May onthe Dublin/Holyhead route which will beof great benefit to the valuable tourismindustry as well as freight. Pandoro Ltd.has increased its sailings to Liverpool tothree ships a day while Merchant FerriesLtd. will soon commence a freight ferryservice to the UK from its new IR£6.5 mil­lion terminal."

He further pointed to buoyancy in theLo/Lo mode, served by DFT, MTL andCoastal, which saw an increase of 18%over the 1993 figures.

The breakdown of 1994 freight increasesat Dublin Port is as follows:-

• Ro/Ro freight units increased bymore than 9%

• Imported trade cars increased by38%

• Tourist trade increased by 7%• Lo/Lo throughput increased by 18%• Dry Bulk throughput increased by

13%• Liquid Bulk throughput increased by

7%.To meet the growing container traffic in

Bremerhaven (1994: +11 %), which againset a new monthly record in March ofnearly 135,000 standard containers han­dled by the facilities of BLG BremerLagerhaus-Gesellschaft, the River Quay isbeing further extended to the north. Up tonow 350 meters have been completed andthe driving work on the sheet pile walls,measuring a total of 700 meters in length,is to be finished by the end of August. Theoverall length of the quay will then bealmost 3 kilometers, thus breaking its ownrecord in the "Guinness Book of Records".

17 hours at sea and two hours in port.Tests at Goteborg will proceed at least

until mid-year 1995. One of the detailsthat are being specially investigated is thedemands on the ground surface where air­cushion units are to be used.

Tow platforms were used at the Alicon demonstration at the Port ofGoteborg recently,one for a trailer, the otherfor containers. The platforms hover on four air-cushionseach, the air for which is supplied by a compressor on the terminal locomotivepushing or pulling the platforms. A rail guides the train ofplatforms in the terminal,on the ramp and on the vessel.

progress of the matter and to encourageinvestments. The ports plan to be the ter­minals for a FastShip link in a couple ofyears' time. The service would be able tooffer daily sailings from both ports withjust two FastShips, based on a cycle with

28 PORTS AND HARBORS June, 1995

ports relationship by signing a similar pro­tocol with the Port of Hamburg inSeptember 1994.

In the first agreement, the KPA becamethe first African port organisation to enterinto the cooperation following the abolitionof apartheid and the emergency of SouthAfrica as a free market economy with anadvanced port development and manage­ment to boot.

The KPA whose port of Mombasa is thelargest and busiest north of the port ofDurban, was represented at the signing cer­emony held in Mombasa on 17 November19~)3, by the then Managing Director, Mr.A.c. Mumba, while Portnet was represent­ed by the Chief Executive, Mr. A.N.Davidson.

The areas of cooperation in the protocolwere spelt out as the exchange of informa­tion regarding port technology, operationsand management and the exploitation oftraining opportunities through exchange ofpersonnel, extending-invitations to courses,conferences or seminars.

In the case of the cooperation agreementbetween KPA and port of Hamburg, signedon 12 September 1994, by the KPAManaging Director, Mr. Simeon M.Mkalla and the Managing Director of theHamburg Port Consulting GmbH, Mr.George Klatt, the ceremony was also heldat Mombasa.

Mr. Mkalla intoned the significance ofthe occasion by saying that Mombasa as adeveloping port had a lot to gain from thelong experiences of the port of Hamburg.He noted that Hamburg has excellence incontainer operations management andhoped Mombasa would gain in this aspect.

The two year agreement is renewable bymutual consent.

Since the signing of the protocol withPortnet, a log of exchange visits have takenplace at various levels of staff. Many ship­ping arrangements have also taken place .between the ports of Mombasa andDurban.

* * *~ummary of the objectives ofthe protocol of co-operationbetween KPA and Portnet

1. To establish and build a sound andfriendly working relationship and in sodoing promote trade between Kenya andthe Republic of South Africa.

2. To exchange information in the fieldsof Port technology, operations and man­agement. This would include sharingresearch information on port of other mar­itime related matters.

3. To exploit reciprocal training oppor-

tunities through the exchange of personnel,extending invitations to courses/confer­ences/seminars conducted by internal orexternal parties in our respective regions.

4. Provide management or technicalassistance to solve specific problems mutu­ally identified.

5. To develop and promote their friend­ship and mutual understanding by encour­aging cultural and sporting events wherepossible.

6. To seek the involvement and supportof bodies such as the South AfricanDepartment of Trade and Industry andKenya External Trade Authority whoseprimary aims are to encourage trade.

7. To devote themselves to the aboveobjectives.

New UK IndependentPort Assoc. Launched

A new association, the UK IndependentPort Association (UKIPA) was launchedon 10 April at a luncheon in London. TheAssociation has been established to pro­vide effective and independent representa­tion for non-aligned ports in national,European and international forums.

The founding members of UKIPA arethe Ports of Bristol and Felixstowe.Terence Mordaunt, Chairman of the BristolPort Company, commented:

"Although currently limited in number,we already count amongst our membersthe UK's leading port for new car imports,the largest container port in the country bysome margin, Britain's second largestRoll-on/Roll-off port, two major forestproducts ports, as well as liquid bulk, drybulk and general cargo facilities.Altogether, a very significant portion of theUK port industry.

Derek Harrington, Managing Director ofthe Port of Felixstowe, added:

"The UK port industry is very diverseand includes a wide range of interests.UKIPA has been established specifically toprovide an impartial view for large privatesector ports."

UKIPA will be active in all spheresaffecting ports. Within Europe, its mainobjective will be to achieve a level playingfield for all ports based upon a commonapproach to port funding and subsidies. Toachieve this, UKIPA will promote the needfor a common port policy within the·European Union.

In addition to lobbying activities onbehalf of its members, UKIPA will fostercloser ties with other National and

Regional port associations in Europe andWorldwide to encourage and facilitate aforum for the exchange of views in the keyareas of Safety, Operating Systems,Iformation Technology and Environmental Protection.

Largest-ever S. AfricanCargo: Immingham

As Her Majesty the Queen completesher first visit to South Africa in 48 years,trading links between the two countries areproving stronger than ever. This has beenexemplified at Associated British Ports'(ABP) Port of Immingham which handledits largest-ever cargo of South Africangoods recently.

Marine Commodity Lines (PTY)Limited's (MCL) 27,000 DWT bulk carri­er, Athinoula, discharged its cargo of26,000 tonnes of steel and bulk commodi­ties at the port's Nos 2/3 Transit Quay.The vessel was calling at Immingham onthe line's monthly service between the portand South Africa.

Dennis Dunn, Port Manager, ABPGrimsby & Immingham, said the arrival ofthe cargo was timely:

"Immingham has for many years hadstrong links with South Africa. We arepleased to have handled this landmarkcargo during the Queen's first official visitto South Africa in 48 years, a historic timefor UK-South African relations. The ship­ment confirms the growth in cargo vol­umes and our confidence in the future ofthis expanding trade."

Liner Terminal Operators (Immingham)Ltd, a joint venture between ABP andHumberside Sea and Land Services, dis­charged the vessel's cargo in a record 5.6days. Four gangs were employed andachieved an average of 125 tonnes pergang per hour.

felixstowe: £3.5 MillionSystems Contract

The Port of Felixstowe has invested£3.5 million in new computer systems tofacilitate its ambitious Trinity III expan­sion plan. The package includes twomainframe enterprise servers, softwarelicensing, support and services, which willuphold and enhance the existing worldclass systems.

The Port of Felixstowe, owned byHutchison Whampoa Limited, is the No.1Container Port in the U.K. and employs afully automated system, replacing paper,

PORTS AND HARBORS June, 1995 29

which allows it to operate 24 hours a day,365 days a year. The contact is part of itsTrinity III expansion programme to buildtwo extra deep water berths. This willincrease capacity by 25% and allow thePort to handle 2.2 million TEUs year.

Two duplicate systems will be installedat different locations whthin the Port, eachcapable of providing back-up to each otheras well as running their own applications.

Chris Lewis, Head of InformationSystems at the Port of Felixstowe, com­mented: "We have recently been given thegreen light to proceed with the Trinity IIIexpansion programme. As part of thisexpansion, we are upgrading our IT invest­ment. The new system will help us dealwith over 2.2 millions TEUs a year and themillions of transactions relating to theirmovements. With such mission criticalapplications as our CHARTS (CargoHandling Real Time System) and the com­munity FCPS (Felixstowe CargoProcessing System) running on the newservers, reliability, processing power andsecurity are uppermost in our minds".

The two new computers will be installedimmediately, well ahead of Trinity Ill'searly 1996 completion date. Both systemswill provide back-up to the other via real

time links, which will allow the Port tocontinue functioning at full capacity shoulda disaster occur.

PLA Head Re-affirmsCommitment to Future

A re-affirmation of the commitment tothe future of the Port of London was givenby Sir Brian Show, Chairman of the Portof London Authority (PLA), recently whenhe confirmed the investment for the deep­ening of Diver Shoal in Gravesend Reach.

Speaking at the launch of the 1995 Portof London Handbook, Sir Brian said "Lastyear I spoke about the £50 million beinginvested by the private terminal operators.These facilities are now up and running."

'The PLA is investing too. We have a£5 million scheme to overcome that well­known bottleneck at Diver Shoal which weare on course to complete by the forecastdate at the end of the year." He continuedthat not only was the PLA investing, butthat it was also saving money by mergingthe operation of the former Thames·Navigation Service with Pilotage.

"This has led to a streamlining of theoperation, increased efficiency and savings

and we are passing on these cost savings toour customers. We have held our conser­vancy charges at the 1994 level and wehave not increased pilotage charges for athird year running - which, in effect,means a 10% reduction," he continued.

Sir Brian said that the Port of Londonhad a "very good year" in terms of trade."The increases achieved in the past twoyears have gone a long way to justifyingour forecast of how London is going toexpand between now and the year 2020."

Introducing the new Handbook, GeoffAdam, PLA' s Head of Port Promotion,said that since last year's launch of theglobal marketing initiative "TargetLondon", the message that London is themajor south-east entry port and the UK'slargest port was being recognised world­wide.

"Although no longer directly involved incargo handling, the success of TargetLondon has persuaded us that the PLA' srole as the catalyst for Port promotion isnot only right, but is working."

Referring to the creation of a "new" Portcommunity, he explained that the PLA hadtaken the lead in pulling together the indi­vidual strengths of the operators within thePort of London. "It is a partnership which

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30 PORTS AND HARBORS June, 1995

has brought about a better understanding,focusing on mutual interests which willimprove London as a port and enhance itscompetitive edge."

Explaining that the 1995 Handbook wasfor the whole Port, not just the PLA, hesaid, "It (the Handbook) holds a clear andunmistakable message that the Port ofLondon is "World Class", and as such isprepared and ready to take on the chal­lenges of the future."

Speaking directly to an audience' of over200, including the Port's terminal opera­tors and their customers, Geoff Adamexplained the PLA's commitments to themand the Port.

"On your behalf, the PLA is committedto maintaining freedom of access to thePort of London, pursuing first-class operat­ing standards and competitive costs. Weare also committed to promoting the UK'slargest port as a place where enterprise canflourish," he concluded.

London's Position asUK's Largest Port Intact

Trade through the Port of Londonincreased by one million tonnes to 51.6million tonnes during 1994, maintainingthe Port's position as the UK's largest sea­port. The figures revealed in the 1994Annual Report & Accounts published bythe Port of London Authority (PLA) repre­sent a two per cent rise over the 50.5 mil­lion tonnes handled by the Port in 1993.Describin'g 1994 as a "stimulating yearfor the Port of London" in which much hadbeen achieved, Sir Brian Shaw, Chairmanof the Port of London Authority, thankedthe Port's customers for their continuedloyalty.

In his Chairman's Statement, Sir Briancommented on the number of significantnew facilities that came on stream through­out the Port during 1994. "Terminaloper­ators on the river are demonstrating theirbelief in future growth by significantinvestment."

Referring to his connection with theshipping industry for almost 40 years, SirBrian said "I cannot remember a timewhen the leading UK ports competed morevigorously with each other." Stressing thatthe level of costs is vital for the future ofthe Port and its users, he reaffirmed thePLA's dedication to "keeping costs downand standards up."

"As the country gradually pulled out ofrecession the volume of trade increased,

although customer margins remained underpressure. In the circumstances we (PLA)have been pleased to find ourselves in aposition to hold our 1995 (conservancy)charges at 1994 levels."

"One of the most important aspects ofthe PLA's responsibilities is to maintainand improve access to the Port for all typesof shipping and perhaps the most 'signifi­cant recent decision by the PLA Board hasbeen to approve a £5.5 million project todeepen the Port approaches. This majorproject will enable the Port to handle moreeasily vessels of deeper draught and, forothers, remove tidal constraints altogeth­er."

Looking to the future, Sir Brianexplained that in December the PLA pub­lished its "Trade Forecasts to the year2020" in which it predicted that London'strade could more than double to 112 mil­lion tonnes by the year 2020. "One conse­quence of this is that the demand for cargohandling facilities could far exceed thecapacity of existing terminals on theLondon river."

"It is, therefore, ofcrue:,..i I I Ilportance tothe Port, and to the nation s economy, thatlocal authority and country developmentplanning takes account of the needs toschedule strategically important riversidesites for industrial use, whilst at the sametime giving due consideration to the grow­ing emphasis which quite rightly is givento protecting the environment."

During the year the PLA has devotedconsiderable time and effort in getting thismessage across to politicians and planners,and Sir Brian said he was gratified that theministers representing both Transport andEnvironment had made strong public state­ments acknowledging that the Thames wasessentially a working river.

The financial review of the year showedthat while the PLA's turnover hadincreased by £1.2 million (4.5%) to £28.1million, there was a drop in revenue fromconservancy charges on cargo compared to1993 largely attributable to the mix ofcargo handled, with a substantial reductionin coal being the primary factor.

Income from conservancy charges onvessels remained virtually unchanged,although, as with cargo, the mix of vesselshad an adverse effect on revenue. In addi­tion, as from 1 October 1994, the changefrom a Gross Registered Tonnage (GRT)to a Gross Tonnage (GT) basis of chargingwas completed, the estimated reduction inrevenue of 1.5% per annum being to theadvantage of vessels using the Port ofLondon.

Overall, operating expenditure at £27.8million was £3.0 million higher in 1994compared with 1993 although this waslargely accounted for by non-recurring fac­tors, including the final phase of the refur­bishment of Richmond Lock & Weir.

Port of Qingdao: GreatContainerization Efforts

The Port of Qingdao is situated on theCoast of Jiaozhou Bay of ShandongPeninsula, facing Japan and Korea acrossthe Yellow Sea. There is no silt or ice allyear round. With its excellent geographi­cal location, it is one of the most importantforeign trade hubs and the intermediateports of the nation.

In recent years, the Port of Qingdao hasmade great efforts in developing the con­tainerization. The growth rate of containerhandling capacity is over 30 per cent eachyear. Total volume through the Port ofQingdao reached 0.43 million TEUs in1994, an increase of 0.13 million TEUsor42 per cent compared with that of the pre­vious year. The Port of Qingdao ranks thethird among the coastal ports in China for afive continuous years.

At present, there are three containerberths equipped with five container cranes(No.5 crane is the biggest in the country),eight gantry cranes and over 60 specialmachines, and two other deep-water con­tainer berths are under reconstruction. Itscontainer terminal can accommodate thefourth generation container liner. In addi­tion, the Port has one CFS duty-free warehouse and nne dangerous goods warehousewith a total of 8,800 square meters. Fineequipment and facilities for freezing con­tainers guarantee the Port as an importantfreezing container base. The handling vol­ume of import/export freezing containersreached 32,530 TEUs last year, whichranked the first among the coastal ports inChina.

Up to now, the Port of Qingdao hasopened 10 international container lines tosuch countries and regions as the WestCoast of U.S., Japan, Korea, Hong Kong,Persian Gulf, Europe, South-east Asia etc.Each month, more than 130 container lin­ers pull into the Port. From February thisyear, the Port has successfully developedits international container transshipmentbusiness and become the first international

PORTS AND HARBORS June, 1995 31

container transfer port in China. The EDIcomputer system has been in use for con­tainer transportation and terminal manage­ments. Three special international contain­er rail line link the Port with its vast eco­nomic hinterland. The Customs, HealthInspection, Commodity Inspection alongwith Animal and Plant Inspection worktogether to provide clients with convenient,all-sided and high quality services. By theend of this year, the whole containercapacity of the Port will reach 0.8 millionTEUs.

The development of containerization ofthe Port has as bright future. Two deep­water container berths are under construc­tion as the Second Phase of QianwanHarbor Area. The under-water part of theProject will be completed this year; TheThird Phase Project (InternationalContainer Transshipment Base) is plannedto construct 6 large deep-water containerberths with annual throughput capacity ofone million TEUs. By the year 2000, thegeneral throughput capacity of the Port ofQingdao will exceed 2.4 million TEUs.

Kawasaki ContributingTo Met Area Distribution

Kawasaki Port, adjacent to Tokyo andYokohama, plays a role in smootheningthe distribution throughout the wholeTokyo Metropolitan area thanks to theoriginal international trade port develop­ment plan. Construction of the containerberth, the center axis of the Port, will becompleted in April 1996. "Kawasaki" isprogressing.

Two berths (depth of water: 14 m '" 15m; extension: 700 m) of a public containerterminal are now under construction. Oneberth will start service from April 1996.Just behind this container terminal, a 34­hectare total distribution terminal (foreignaccess zone : FAZ) based on the ForeignAccess Zone Concept of Kawasaki Cityhas been developed along with the con­struction of the container terminal.

The location with a wide range of trans­portation networks including the TokyoBayside Highway, the Trans-Tokyo BayHighway and the Kawasaki Traverse Roadmakes this container berth more meaning­ful.

Facility guide

Mooring facility : 2 berths x 350 m ofextension

Depth of water: 14 m "'15 m

32 PORTS AND HARBORS June, 1995

Terminal area: 245,000 m2

5 super gantry cranes14 transfer cranesStacking yard storage capacity:

Dry 12,152 TEURefrigerated 945 TEU

Gate:Entrance 6 lanesExit 4 lanes

Control buildingMaintenance shop 24 m x 35 mQuarantine yard 29 m x 88 mDangerous article storage place (open

space)

Foreign Access Zone (FAZ)

34 ha(just behind the facility)

World Class CementTerminal at Jurong

A world class bulk cement import termi­nal is fast taking shape at Jurong Port. Bythe end of next year, the terminal at Pu1auDamar Laut in Jurong Port which is ownedand managed by Jurong Town Corporation(JTC) will be equipped with additionalberths and new equipment to handle morethan 3 million metric tonnes of cementannually.

Six cement companies are in the processof setting up silos. at the port for the stor­age and distribution of cement. They areexpected to commence operations at PulauDamar Laut towards the end of next year.

Mr Fong Yue Kwong, Director ofJurong Port, said: "The development ofthe terminal reaffirms our role to supportthe industrial needs of Singapore. Whencompleted, Jurong Port will become one ofthe world's largest common user cementimport terminals."

To serve the six cement companies,Jurong Port will be constructing two dedi­cated berth of 14 metre draft capable ofhandling vessels of up to 40,000 dwt. It isalso installing specialised equipment sys­tem to handle cement passing through thetwo berths.

The equipment include two Siwertellunloaders with a capacity of 800 metrictonnes per hour and a series of airslideconveyors to transport cement directlyfrom the ship's hatches into the cementsilos. This will enable cement to be trans­ported in a continuous and relatively dust­free manner.

In addition, Jurong Port will refurbishand upgrade the five existing berths at themainland to handle vessels up to 35,000dwt.

Hong Kong RemainsBusiest Container Port

1994 saw another year of impressiveperformance in port activities in HongKong. The total cargo throughput wassome 148 million tonnes representing anincrease of 25%. The container throughputrose to some 11.1 million TEUs, a growthrate of 21% over 1993. With the full oper­ation of the 4 berths at Terminal 8 at KwaiChung, the 8 container terminals togetherhandled a total of 7.3 million TEUs.Another 2.8 million TEUs were handled bythe "Stream" sector and 1 million by rivertrade vessels at the minor terminals. Arecord of handling 1 million TEUs permonth was noted in July, August andSeptember 1994.

A total of some 36,900 ocean-going shipcalls were registered, showing a growth of12% over the preceding year. In addition,River Trade vessel traffic to and from thePearl River Ports (including Macau)amounted to some 305,000 vessel trips in1994, comprising 125,000 internationalhigh-speed passenger ferry movements and180,000 cargo vessel movements, indicat­ing respective increase of 16%, 12% and18% over 1993. The two internationalferry terminals in Hong Kong served 20.7million passengers in 1994; an increase of3% over 1993.

Hong Kong:Anchorages,Fairways Rearranged

A package of marine traffic managementmeasures to meet the growth of marinetraffic has been put into effect in 1994 inHong Kong. The measures were madenecessary by the unprecedented growth inmarine traffic attributed to the vibranteconomy in the Pearl River Delta area ofGuangdong Province in southern China forwhich Hong Kong is the primary serviceport.

These measures include the re-arrange­ment of anchorages in the western part ofHong Kong harbour, coupled with the cre­ation of new fairways and extension of theTraffic Separation Scheme leading to theharbour. They are aimed at making betterutilization of available water space byintroducing a more proactive style of traf­fic management. The success of thesemeasures has led the Hong Kong MarineDepartment, in consultation with the ship­ping industry, to prepare for further proac­tive traffic management measures in futureto adapt to the growth of the port of HongKong.

Yokohama :Its Diverse Activitiesand Vision of the 21st Century

Yokohama was a quiet fishing villagewhen feudal Japan awoke from its sleepand designated the city one of the threeopen ports for trade with the outsideworld. This proved to be a wise choice.Due to its strategic geographical location,expertise in cargo handling, ample provi­sion of the most modern facilities andequipment, and sights set firmly on thefuture, the Port of Yokohama has flour­ished as a leading worldwide port for over130 years.

Location and AccessThe Port of Yokohama is prospering

due to its geographical position, the con­tinual expansion of intermodal access net­works and the increase in international searoutes. The Port of Yokohama is locatedat the center of Honshu, Japan's largestisland, on the west side of Tokyo Bay.Yokohama is a port naturally blessed by atemperate climate with favorable winds,gentle tides and deep sheltering anchor­ages.

The City of Yokohama is about 30 kilo­meters (18 miles) to the southwest of cen­tral Tokyo. Its population makes it thesecond largest city in Japan. Moreover,

• Business core city- Arterial road currently in use•••••• Arterial road under construction

- - - Planned road_ ••_. Road under construction

Railway--..... Sea lane

the hinterland surrounding the Port ofYokohama isone of the world's greatestproducing and consuming regions.Therefore, an expanding network ofexpressways linking Yokohama to theprincipal cities in this region is crucial toensure continued success at the Port ofYokohama.

In particular, three projects will furtherspeed up transportation between the portand surrounding areas. They are (I) TheBay Shore Expressway, completed in1994, which became the main arterybetween the Port of Yokohama andTokyo, as well as Haneda DomesticAirport and Narita International Airport:

PORTS AND HARBORS June, 1995 33

Figures (1994)

Foreign trade also levelled off at67,66],096 tons, of which 31,083,543 tonsconsisted of exports, down 2.8% from

Arrival of Vessels 56,943(261,328,574 gross tons)

Foreign Traffic 12,334Domestic Traffic 44,609

Total Cargo 128,274,553 tonsForeign Trade Cargo 67,661,096 tons

Container Cargo 33,440,207 tonsContainers 2,317,102 TEUValue of Foreign Trade 9,1 trillion Yen

Facilities and EquipmentThe Port of Yokohama is implementing

a series of large scale projects in order tomaintain a port with diverse functionswhile simultaneously meeting the needs ofits customers and citizens as well as facili­tating cargo distribution and logistics andstimulating commercial and cultural activ­ity for the 21st century.

(1) Logistics FacilitiesMinami Honmoku PierMinami Honmoku Pier is one of the

main construction projects currently underway at the Port of Yokohama. It willinclude facilities such as high standardcontainer berths that enable the port tocope successfully with the expectedincreases in container volume and over­sized ships. The pier will be designated asa comprehensive transport terminalincluding land and air transport functions.This terminal will be the Port ofYokohama' s major container terminal forthe 21 st century.

Construction of this man-made islandhas been underway since 1990 and thefirst berth is scheduled to open by FiscalYear 2000. The reclaimed land area' willtotal approXimately 217 hectares. The pro­ject includes the construction ofa highstandard container terminal, covering 56hectares and equipped with 4 container

1993, while imports at 36,577,553 tonsbarely cleared the amount recorded in]993.

The United States ranked first in bothends of Yokohama' s trade. China was sec­ond in imports, up 15.9% over 1993,fourth in exports, up 9.9% over] 993.Korea, Singapore, Germany and Australia,respectively, were tIle other leading majortrading countries with the Port ofYokohama in both exports and imports.

Value of TradeThe total value. of exports and imports

came to approximately 9.12 trillion yen.In Japanese yen, these figures amounted toa decline of 1.4% in exports and a rise of6.7% in imports. But in terms of U.S. dol­lars, these figures meant a rise of 7.2% inexports and of 16.4% in imports.

Ship MovementsShips calling at the Port of Yokohama

in 1994 totalled 56,943 bottoms, up 2.2%from 1993 for a total of 261,328,574 grosstons, a dip of 1.4% from the previousyear. Among ocean going ships, full con­tainer ships calling at the port increased7.4% to 4,654 bottoms. Their gross ton­nage stayed level at 96,5] 2,198 tons, com­pared to 96,616,988 tons in 1993.

8921

200m-350m11m-14m

40

All BerthsContainer Berths

LengthWater DepthGantry Cranes

Facilities (1994)

Container FreightContainer trade continued to lead

Yokohama' s trade. The movement of for­eign trade containers, export and import,through Yokohama totalled 2.317 millionin ]994 (up 6.9% from 1993), withexports totaling ] .20 million TEU (up6.4%) and imports 1.12 million TEU (up7.4%), making it the world's tenth leadingcontainer port (as cited. in PortDevelopment International publication,January/February 1995 issue).

CargoTotal freight passing through the Port of

Yokohama rose 3.7% to 128,274,553 tonsfrom 123,699,513 tons the previous year.

Facts and FiguresBy glancing at the facts and figures, it

becomes obvious that Yokohama is one ofthe top container ports in the world.Additionally, there is the opening of thehigh standard container terminals, such asDaikoku C-3 and C-4, among the mostmodem in Japan, that are equipped withsuper gantry cranes and water depths of14 meters: Terminals such as these haveincreased container and cargo distributionand thus helped Yokohama maintain itsleading position in world trade.

(2) The Trans-Tokyo Bay Expressway,which will alternately tunnel under andisland hop from Kawasaki, Yokohama andTokyo across Tokyo Bay to Kisarazu onthe Boso Penninsula and (3) the CapitalRegion Loop Expressway, which willdirect traffic around metropolitan Tokyo,from Chiba to Yokohama, bypassing thetraffic congestion in the capital area.

Equally importantly, Yokohama, withits extensive sea route network, reachesout to ports all over the world. The Port ofYokohama in the area of conventionalvessels is servicing over 230 shippingliner companies. Trading with over 150countries all over the world, Yokohamaprovides a wide network of sea routes,particularly between the Far East andSouth East Asian sea routes to Europe andthe Mediterranean.

34 PORTS AND HARBORS June, 1995

berths, each with a quay length of 350meters and a depth -of 15 meters. Threesuper gantry. cranes will be installed ateach berth. These berths will be capable ofmooring oversized container vessels of5,000-6,000 TEU (60,000 dw/t).

Yokohama Port Cargo CenterIn recent years, there has been rapid

growth in containerized goods, manufac­tured imports and customers' needs. Inorder to meet these needs, the Port ofYokohama is not only constructing highstandard container berths but a highlysophisticated logisics processing center aswell. This center, called the YokohamaPort Cargo Center (YCC), will provide abase for several operational functions suchas cargo sorting, storage, processing anddistribution.

YCC will be strategically located in theheart of the center of cargo distribution ofthe Port of Yokohama behind the containerterminals C-3 and C-4 at Daikoku Pier,and will cover 9.3 hectares. The five storycargo distribution building with a totalfloor space of 320,000 square meters willbe the largest general distribution center inall of Japan. The facility will consist of aCargo Terminal Building, targeting mainlyimported goods, and an office building.Rampways on both sides of the CargoBuilding will enable direct access to anysection of the building and the office build­ing will be connected with the. CargoBuilding with a computer on-line system.This facility is scheduled to be completedby Fiscal 1996. The center, together withlarge scale container terminals such asDaikoku and Minami Honmoku Pier, willvastly improve the function of cargo distri­bution.

(2) Facilities PromotingCommercial Activities

Yokohama Import MartFor the promotion of imports the City of

Yokohama has been designated a ForeignAccess Zone (FAZ) by the Japanese gov­ernment. By receiving this designation, theCity of Yokohama aims to become a pro­motion and development center forimports. One of the projects within FAZ isthe Import Mart.

The' Yokohama Import Mart will be adesignated as a base for promoting interna­tional business, which will make use of thefunction of the Port of Yokohama inter­national cargo distribution activities. Thiswill stimulate joint ventures, investmentand other business activities by givingopportunities to foreign companies throughprovision of areas for product exhibitionspace and wholesale retail functions.

International Passenger TerminalRecently, Japan has seen a surge in

demand for cruising services In order toaccommodate this new demand, the Port ofYokohama is renovating its facilities at itshistoric Osanbashi Pier. Specifically, con­struction of a wharf 900 meters in totallength, 4 berths for passenger ships withwater side depths of 10-12 meters and abrand new international passenger terminalwith numerous facilities is currently underway. Additionally, in order to have aninternational passenger terminal that wouldbe a suitable international symbol of theglobal city, Yokohama, a worldwidedesign competition has been held. Fromthe 600 applicants over the world that sub­mitted designs, the winning design wasselected in February of this year.

The selected design's creator, an archi-

tect who is· currently working in London,said he wanted to break away from the oldimage of Osanbashi Pier, harmonize it withits surroundings and create space for publicuse. His design uses soft curves to createextension and flow, and suppresses theheight in order to focus attention on thebeauty of incoming ships. The effect cre­ates a low-silhouette structure with flowingcurves which melt into the city back­ground. The initial construction plan forthe terminal will begin in 1995. The actualplan of construction will be devised in1996. The completion of the constructionof the terminal is scheduled for 1998.

(3) Recreational Facilities­Hakkeijima andKanazawa Marina

The Port of Yokohama, while makingfuture plans and projects, has taken intoconsideration the increasing demands bythe citizens for ocean centered recreationin recent years. For example, outside of thecommercial and industrial zones of the portlies Hakkeijima island, a 24 hectare man­made island on which are a marine park,with restaurants, a swimming area andbeach, an aquarium, and an amusementpark. This facility opened in 1993. Seven­teen hectares of the island are under theadministration of the city of Yokohama.

Another facility targeted for citizens' useis the Kanazawa Marina. The City ofYokohama has decided to redevelop theKanazawa Timber Pier as a marina to meetrising enthusiasm for marine recreationamong the citizens. The plan has anotherpurpose - that is, to concentrate many plea­sure boats now moored in the city's riversand canals in one consolidated marina, to

PORTS AND HARBORS June, 1995 35

Mayor Takahide of Yokohama (left) presents Mayor Sasayama ofKobe with an envelopofcontributions from the citizens of Yokohama to the Quake ReliefFund.

make better use of the limited water area inthe Port of Yokohama. At present, recla­mation work is under way to make themarina available for use from the fiscalyear of 1996. The Kanazawa Marina, uponcompletion, will form the city's marinerecreation center along with theHakkeijima Island.

Vokobama's Vision intotbe Future . Tbe UltimatePlan . Minato Mirai 21

In Yokohama's comprehensive "Plan forthe 21 st Century", Minato Mirai is the coreof this plan and its objectives are the fol­lowing: promoting and developingYokohama as an independent city, improv­ing port functions and decentralizing busi­ness functions in the Metropolitan Tokyoarea and redirecting them to the MinatoMirai area.

The project aims to create a newYokohama city center with people andinformation-oriented city functions. In theplan, it is envisaged that in this area in thefuture there will be a working populationof 190,000 and a residential population of10,000. The project covers 186 hectares ofland, including 110 hectares of existingland and 76 hectares of reclaimed land.

Additionally, Minato Mirai 21 will be aconsolidated area where advanced busi­ness, commercial and cultural facilitieswill be integrated and where informationcan be exchanged.

Several of the facilities at Minato Mirai21 are already open. For example, theLandmark Tower, which opened in 1993,is the tallest skyscraper in Japan and is amulti-functional structure with offices, ashopping mall, and a world class hotel.The central facility is the PacificoConvention Plaza Yokohama, whichopened in 1991. The facility includes thePacifico Convention Center with varioustypes of meeting rooms, an eight language

36 PORTS AND HARBORS June, 1995

simuitaneous interpretation system, a spa­cious exhibition hall and yet anotherworld-class hotel. Additionally, the Natio­nal Convention Hall, which seats 5,000people and is the largest meeting hall inJapan, opened in April of 1994. The pro­jects and facilities concerning MinatoMirai 21 are shaping Yokohama into evenmore a culturally oriented internationalcity.

The Port of Yokohama, with its primelocation, "state-of-the-art" facilities andvisioJ? towards the future, will be ready forthe 21 st century.

Yokohama to Kobe:Requital After 72 Years

On April 13, 1995, the Mayor ofYokohama Hidenobu Takahide visitedKobe Mayor Kazutoshi Sasayama at hisoffices in Kobe's City Hall and presentedhim with some 760 million yen as the con­tribution from the citizens of Yokohama tothe Quake Relief Fund.

Mayor Takahide said, "According to theCity's old records, it was Kobe from whichemergency supplies first came to help thevictims of the Great Kanto earthquake inYokohama and in particular refugees weretransported by sea to the Port of Kobe andwere taken care of in your city. I am veryglad today to be able to reciprocate thekind support our citizens received fromyour people 72 years ago."

The money contributed reportedly con­sists of 91.7 million yen raised from thecitizens, 22.4 million yen from the cityemployees and 647.5 million yen from thevarious districts of Yokohama during thepast months since the January 19th Kobedisaster.

Furthermore, the City of Yokohama dis­patached a total of 800 staff and experts tohelp with the rehabilitation work in Kobeand, as of April 13, some 30 engineeringstaff from Yokohama were at the forefrontof Kobe's restoration activities.

Mayor Sasayama expressed the deepgratitude of Kobe for the most generousand practical assistance which theYokohama citizens had provided.Meanwhile, Mayor Takahide commented,"We in Yokohama will analyze all theknow-how which our staff has learnedfrom Kobe so as to make the best use of itby incorporating it in Yokohama's cityplanning to make our facilities more resis­tant to disasters.

Both Mayors confirmed that they wouldhelp each other in efforts to achieve theearliest possible recovery of normal condi­tions for the citizens and for port opera­tions in Kobe.

(an excerpt from the Nippon KeizaiShimbun of April 15, 1995, translated bythe lAPH Head Office)

Osaka Port: ShowTowards the NextA New Sea -side City Centerof the 21 st Century

o saka Port is promoting 'Technoport Osaka,"

a 775 hectare area (Sakishima, Maishima,

Yumeshima) where

three core functions

of internationaltrade,

advanced informa­

tion / communica­

tion and develop­

ment of leading­

edge technologies

are being concen­

trated to create a

suitable new

Port of OsakaPORT&HARBOR BUREAU, CITY OF OSAKA TEL06·572·5121 FAX06'572'0554

OSAKA PORT PROMOTION ASSOCIATION TEL 06'571'2200 FAX 06·573·6231

OSAKA PORT TERMINAL DEVELOPMENT CORPORATION TEL 06·612 ·0171 FAX 06·612· 7790