Ports Harbors - IAPH

Ports & HarborsSeptember 2000Vol. 45No. 7

IAPH Officers(1999 - 2001)

PresidentDominic J TaddeoPresident & Chief Executive OfficerMontreal Port AuthorityCanada

First Vice-PresidentAkio SomeyaExecutive Vice PresidentNagoya Port AuthorityJapan

Second Vice-PresidentPieter StruijsVice Chairman/Executive DirectorShipping Rotterdam Municipal Port ManagementNetherlands

Third Vice-PresidentH. Thomas KornegayExecutive DirectorPort of HoustonUSA

Immediate Past PresidentJean SmaggheExecutive Vice-PresidentInternational Affairs ofAssociation of FrenchPorts (UPACCIM)France

Secretary GeneralSatoshi InoueIAPH Head OfficeTokyoJapan

&Ports HarborsPublished by The International Association ofPorts and HarborsNGO Consultative Status, United Nations (ECOSOC, UNCTAD, IMO, CCC, UNEP)Secretary GeneralSatoshi Inoue Head Office5th fl. North Tower New Pier Takeshiba1-11-1 Kaigan, Minato-ku, Tokyo 105-0022, Japan Tel: 81-3-5403-2770Fax: 81-3-5403-7651Web site: http://www.iaph.or.jpE-mail: [email protected]

IAPH ANNOUNCEMENTS & NEWSIAPH/ICHCA’s joint survery of fumigated cargoes and the risk at ports .....................................................3The 5th IAPH Information Technology Award 2001....................................................................................41st Pan-African Port Conference in Abidian, Côte d’lvoire ..........................................................................5Joint Meeting of the Committee on Port Safety, Environment and Marine Operations/DTF

in Marseilles ............................................................................................................................................6Report on Port Finance Seminar, IPER, Le Havre, France............................................................................7Takao Hirota Awarded JSCE International Prize .......................................................................................10Izumi Hayashi bids farewell to her IAPH friends........................................................................................11Obituary: Ben E. Nutter, IAPH Founder and Honorary Member ...............................................................11Membership Notes .......................................................................................................................................12

OPEN FORUMShopping the Ships of Shame ......................................................................................................................13European container ports facing the challenges of globalization.................................................................14A Brief Review of Legal Problems in Multimodal Transport .....................................................................17The Kyoto Convention - A New Port-Customs Relationship......................................................................24Public-Private Mix: Risk management and distribution ..............................................................................25Developing Countries - Port Concessions: risks to be shared......................................................................26

INTERNATIONAL MARITIME INFORMATIONBPO: Baltic Sea - Europe’s New Maritime Highway • BIMCO Basic Course, Oct. 10-11,Tallinn ...........27Tokyo MOU: Port State Control in the Asia-Pacific Region.......................................................................28E-Commerce and Customs...........................................................................................................................29New Publications .........................................................................................................................................30

WORLD PORT NEWSThe Americas

Port Holding Discussions with Terminal Operators ....................................................................................30Good first half for the Port of Montreal: Traffic up in almost every sector • Vancouver Port

Commission approves a five-year agreement • A brand new auto carrier calls from Kawasaki ..........31An Increase of 4.6% in Canal Traffic • Long Beach: A record monthly container cargo

volume • Dr. John E. Kashiwabara elected as president .......................................................................32Alameda Corridor Transportation Auth. approves a 2000-2001 budget • Los Angeles Board

highlights • NY/NJ: A record $66.3 million in prime construction contracts to minority and smallbusinesses • Port of Redwood: Cargo traffic reaches a record 945,304 tons •Port of Seattle: Construction starts on Phase 2 at Bell Street Pier Cruise Terminal .............................33CIP/OAS introduces website.................................................................................................................34

Africa/EuropeIncreased frequency for Antwerp-Switzerland shuttle • VSA3 group starts second

service to South America • A smart solution from Kalmar Industries ..................................................34Port of Le Havre attends the World Fair in Hanover • Overland Communications with Le Havre ............35Hamburg: Successful port marketing seminar • Seamless intermodal transport solutions for the

21st Century - Intermodal 2000, Nov. 29-Dec. 1, Genoa .....................................................................36Port as Major Stimulus to Irish Economy....................................................................................................37New Harbour for Amsterdam • Groningen Seaports not privatized • Close co-operation with

Archangel ..............................................................................................................................................38Port of Riga achieving Freeport status and ISO 9002 • MSR assists Port of Constantza with

the implementation of VTMIS • Construction on P&O North Sea Ferries Terminal • Sony: Inland Shipping • Ports of Immingham & Goteborg sign Twinning Agreement..................................39

Busy Schedule Ahead for New River Body • Tilbury Police Move to New Headquarters .........................40Asia/Oceania

Innovative waste management company to provide ship-side service .......................................................40Sydney Achieves Magic Million • Dalian: A new grain facility operations • Dramatic Changes to

the Port Environment in Kaohsiung ......................................................................................................41Mormugao Port Trust gets ISO 9002 certification.......................................................................................42Hakata: Aiming to become a hub port in Asia • Osaka Maritime Museum

“Naniwa-no Umi-no Jikukan” Opened .................................................................................................43Osaka Port: Deepening Sister Port Relationships ........................................................................................44Yokohama: Construction of Japan’s First 16m Deep Berths • Port Klang: The Growth Ahead.................45Port Klang improves ranking • Port Zayed embarks on a two-phase development plan.............................46Wijsmuller wins another major SPM contract in Yemen ............................................................................47IAPH Essay Contest 2000 – 2001: Conditions for Entry.............................................................................48

3PORTS AND HARBORS September 2000

Dear IAPH Members:

Requesting your cooperation in supplying us with facts and realities onfumigated cargoes and the risk at ports

1 Either as a consequence of quaran-tine requirements or in view of pestcontrol as well as for health reasons,cargoes are treated with fumigantssuch as methyl bromide or phos-phine. In other cases, it is not thecargo that needs to be fumigated butthe material that is used for stowingthe cargo, such as pallets and dun-nage used for stowage and securing.Methyl bromide is being phased outfor environmental reasons and phos-phine gas (hydrogen phosphide) isnow the preferred fumigant and isincreasingly being used. It is pro-duced by the action of water ordamp conditions on calcium, magne-sium, aluminum or sodium phos-phides, and it has a low thresholdlimit value. Damp conditions canreactivate these substances.

2 Cargo Transport Units (CTUs) suchas containers and vehicles contain-ing cargo under fumigation are sub-ject to IMO regulations contained inthe IMDG Code. This includes a dec-laration as a class 9 cargo and the

affixing of a warning sign at the doorend. Fumigated bulk cargoes shouldbe handled according to IMO’sRecommendations on the Safe Use ofPesticides in Ships and should alsobe declared to the port operator andsigns displayed.

3 However, both the Code and theRecommendations are advisory onlyand have not been made mandatoryinstruments in a number of coun-tries.

4 As a result, fumigated containersarrive in ports without proper docu-mentation and signage as indicatedin the IMDG Code and the PesticidesCode. It will be evident that this maylead to very unsafe situations whenthese containers are opened forunloading by port personnel or byemployees of the consignee or whenstevedores enter a bulk hold.

5 The problem has been recentlybrought to the attention of IMO byCanada. In a two-week inspection inCanadian ports last year eight CTUswere found to be under fumigation,but were not actually declared assuch.

6 Canada has now submitted arequest to IMO to issue a circularreminding agents, shippers, terminaloperators and ship owners of the

IAPH/ICHCA’s joint survey of fumigated cargoes and the risk at ports

T he Secretary General of IAPH circulated a letter from Peter van der Kluit to all IAPH memberson July 12, 2000 asking them to submit their experiences with fumigated cargoes at ports tosee if such cargoes are being handled according to IMO’s Recommendation on the Safe Use

of Pesticides in Ships.The matter was discussed by the IAPH/IMO Interface Group at its meeting held in Marseilles on the

occasion of the mid-term board meetings in May this year, further to the consideration and recommen-dation of the joint Port Safety, Environment and Marine Operations Committees which also met inMarseilles.

The Secretary General indicated that the submission of the findings as a result of the survey was tobe made by mid-September and required that any information from IAPH members on subject matterwere requested to be communicated to Peter van der Kluit, IAPH European Representative and LiaisonOfficer with IMO, no later than the end of August 2000.

The circular dated July 12, 2000 is as follows:

requirements of the IMDG Code withrespect to the transport of CTUsunder fumigation and to highlightthe risk to safety that improper pro-cedures of fumigation and mis-decla-ration of CTUs under fumigation canhave on the persons involved in thehandling of these cargo transportunits.

7 Both the Safety Panel of ICHCA(International Cargo Handling Co-ordination Association) and the IAPHCommittee on Port Safety,Environment and Marine Operationshave discussed this issue and con-cluded that the Canadian submissionshould be supported since this is nodoubt a matter that is of great con-cern to ports and cargo handlingorganizations.

8 The IAPH/IMO Interface Group at itsmeeting in Marseilles in May of thisyear endorsed a committee proposalto prepare, jointly with ICHCA, asubmission to IMO in support of theCanadian initiative – perhaps withthe addition of suitable references tobulk operations as well.

9 In order to make the submission aseffective as possible, it is felt that itshould contain documented factsoriginating from ports. To that endIAPH member ports are requested tosubmit their experiences with fumi-gated CTUs to me at the addressthat appears at the end of this arti-cle.

10 Since the deadline for the submissionto IMO is mid-September, your con-tributions should reach me prefer-ably not later than the end ofAugust 2000.

11 In the interest of the safety of portsand cargo handling your co-opera-tion will be highly appreciated.

P.C. van der KluitIAPH Representative in EuropeIAPH Liaison Officer with IMO

c/o Marine Safety Rotterdam bvP.O. Box 51290

3007 GG RotterdamThe Netherlands

Fax: +31 10 484 6071E-mail: <[email protected]>

4 PORTS AND HARBORS September 2000

entrant whose project, researchor study, developed in the previ-ous two years, is judged the mostinteresting and valuable by theSelection Committee according tothe following criteria:• Innovation;• Relevance to maritime trans-

port and the port industry; and• Potential for implementation

Description of Application:The application for the second

category of the award shouldinclude the whole project, paperor report along with all the exist-ing supporting evidence.

The gold, silver and bronzeplaques will be presented for thebest entries.

SELECTION COMMITTEE:The Selection Committee of fourwill receive, review and judge themerits of all entries. TheSelection Committee will becomposed of:• Emili Arbos. Port of Barcelona,

Spain, Chairman of the IAPHTrade Facilitation Committee;

• Dominic J. Taddeo, Presidentand CEO, Port of Montreal, thehost port of the 22nd IAPHConference, at which theAward will be presented;

• A member to be nominated bythe Chairman of the TradeFacilitation Committee from aregion not represented by theother two members; and

• Satoshi Inoue, SecretaryGeneral, IAPH

LANGUAGE: English

DEADLINE: Entries in quadru-plicate (four copies) must bereceived at the IAPH Head Officeby 4 p.m., Japan time,December 29, 2000 so as toallow the Selection Committeeenough time to judge the entrieseffectively.

RESULTS: The winners of thegold, silver and bronze awards ofboth categories will be notified in

good time to allow presentation of the awards to be made during the22nd World Ports Conference of IAPH in Montreal, Canada, May 19 -26, 2001.

PUBLICITY: The award-winning entries will be published in the IAPHmagazine “Ports and Harbors.”

Entry submission by mail, e-mail or fax to:The IAPH Information Technology Award 2001c/o The International Association of Ports and Harbors5th floor, North Tower, 1-11-1 Kaigan, Minato-ku, Tokyo, 105-0022,JapanTel: +81-3-5403-2770 Fax: +81-3-5403-7651E-mail: [email protected] Website: http://www.iaph.or.jp

The 5th IT Award 2001:IAPH invites entries in the follow-ing two different categories:

CATEGORY ONE: Any Regularor Associate Member of IAPH willbe eligible to submit an entry forthe award. Any application ofinformation technology within aport may be submitted, whetherpurely internal to the port author-ity or involving other outsideorganizations in such areas as EDI.The winner will be the entrantwhose project or application,implemented in the previous twoyears, has resulted in the greatestbenefit to the port judged by theSelection Committee on the fol-lowing criteria:-

• Lower costs;• Increased revenues;• Improved safety;• Environmental protection;

and• Enhanced efficiency

It is specifically intended thatthese criteria will enable ports inless developed countries, with lim-ited resources and their own par-ticular circumstances, to competefor the award alongside thosewho already use the availabletechnologies extensively. Relativeimprovement for a port will bethe key factor for comparison.

Description of Application:• Summary - Briefly describe (up

to 400 words) the application,including the business problem,the technology solution, thetime taken to achieve resultsand the date of implementation.

• Results (up to 400 words) -Provide specific performancemeasurements which show theimprovement brought aboutthrough the IT application, e.g.,increase in revenues, decreasein costs, percentage change inresults, time savings, operatingimpact, increase in port capabili-ties.

• Technology or Services used(up to 200 words) - List hard-ware, software and services that were used in the application.

• Obstacles Overcome (up to 300 words) - Explain the primary prob-lems (technological, organisational, human or other) overcome oravoided that threatened the success of the project, and the measuresused to overcome these difficulties.

• Technology Base (up to 300 words) - Give an indication of the leveland extent of technology in use within the organization before imple-mentation of the project or application submitted.Gold, silver and bronze plaques will be presented for the best entries.

CATEGORY TWO: Universities, Institutes, Non-GovernmentalOrganizations and any other non-commercial institutions dedicated toinvestigation, study and research in the field of the maritime transportand the port industry will be eligible to submit an entry for the award.Any project involving research, a survey or an investigation within themaritime transport sector may be submitted. The winner will be the

The thPH Imformation Technol

Award 2001

The thIAPH Imformation Technology

Award 2001

INTERNATIO

NAL

ASSO

CIATION OF PORTSAN

DHARBORS•

IAPH invites entries reporting ona project involving research into

the application ofInformation Technology in Ports

and Maritime Transport

BACKGROUND: Since 1996, the IAPH Trade Facilitation Committee has organized the IAPH Information Technology

Award, for the purpose of demonstrating IAPH’s commitment to promoting the use of information technology in

ports and maritime transport by presenting the award for outstanding research in the application of Information Technology (IT) in this field. Following the first three

competitions, during which period the award was open to IAPH members only, starting with the 1999 IT Award, IAPH has launched a second category opened to research institutes, universities, Non-Governmental Organizations (NGO) and

other non-commercial institutions.

The recipients of the 1999 IT Award were:Category One (applicants from IAPH member ports)

• Gold: “Free Commercial Zone - EDI System” Port Klang Authority, Malaysia

• Silver: “IMS – Integrated Maritime Information System” Ports and Railways Authority, Israel

• Bronze: “Realization of the Integrated Information System in the Port of Tallinn,” Estonia

Category Two (applicants from academic institutes)• Gold: MERMAID (Marine Economic Resources and MarineIntermodal Directory) – Center for Ports and Waterways, Texas Transportation Institute, The Texas A&M University• Silver: “European Marine Motorways (EMMA) Project”

– Napier University of Edinburgh, UK• Bronze: “Harbour Vessel Traffic Management”- World Maritime University of Malmö, Sweden


I A P H A N N O U N C E M E N T S & N E W S

Monday, December 4, 20000900-1230 Official opening ceremony of the

50th Anniversary of the PortAutonome d'Abidjan in the pres-ence of the Head of State• Speeches• Sundry events (decoration,

commissioning facilities, etc.)1230-1430 Lunch break1430

• Meeting of IAPHEurope/Africa Officials

• Meeting of the Pan-AfricanAssociation for PortCooperation

Tuesday, December 5, 20000900-1030 Opening ceremony of the Pan-

African Ports Conference by thePrime Minster• Opening of the Exhibition• Refreshment

1030-1230 1st SessionMain theme: Recent Evolution &

Perspectives ofInternational TradeChairman: Dominic TADDEO,President, IAPH

1030-1050 Major Global Trends inCommercial ExchangesProfessor Pierre BAUCHETProfessor Emeritus and PastPresident of the University ofParis I Pantheon Sorbonne,Member of the Institute ofFrance.

1050-1110 Trade Patterns in Africa*Speaker - TBA

1110-1130 Globalisation & New Stakes inInternational Trade:Impact onthe African Countries’ TradeProfessor Allechi M’BETDirector of the Department ofEconomics - University of Cocody(Côte d'Ivoire).

1130-1150 Globalisation: The NewChallenges for the World'sPortsDominic TADDEOPresident, IAPH

1150-1230 Panel discussion1230-1400 Lunch

END OF SESSION

1430-1800 2nd SessionMain Theme Maritime Transport and Ports1430-1600 Sub-Theme 1:

New Challenges in theLogistic Transport ChainChairman: Professor PierreBAUCHET

1430-1450 Recent Evolutions & Changes inMaritime TransportNicolas TERRASSIERDirector of the Shipping Institute &Maritime Studies Institute(ISEMINAR), France

1450-1510 The Development of Inter-modalism: Role of ports as logis-tic platformsDr Hans Ludwig BETHMarketing & Public RelationsManager,Port of Hamburg (Germany).

1510-1530 Liberalisation in MaritimeTransport: Consequences forAfrican CountriesRene M'BAYENExecutive Director of CAMSHIP(Cameroon).

1530-1600 Panel discussion1615-1630 Coffee break1630-1800 Sub-theme 2

Competitiveness of AfricanPortsChairman: Jean-Marie ANIELE,President, PMAWCA

1630-1650 Maritime Services to AfricanPorts: Physical and InternationalConstraintsSerges LASTCHENKO

President of the EuropeanCommunity Shipping AssociationManaging Director for West andCentral Africa (SCL: SafmarineContainer Line), Belgium

1650-1710 Port Costs & Competitivenessof the Transport Chain in Africa*Speaker - TBA (UNECA)

1710-1730 The Importance of EfficientAdministrative and CustomsProceduresBernard STOVENGeneral Secretary of SIM-PROFRANCE

1730-1800 Panel discussion

END OF SESSION

Wednesday, December 6, 2000

3rd SessionMain Theme:Ports & Development0830-1000 Sub-Theme 1:

African Ports & the NewInternational MaritimeEnvironmentChairman: Samson LUHIGO,President, PMAESA

0830-0850 Technological Changes inMaritime Transport: WhichStrategies for the African Ports?BANADDENNBIDirector of Development, MoroccoPorts Authority

0850-0910 New Developments inInformation Technology: TheImplication of the PortCommunitySantiago MILABarcelona Port Authority (Spain)

0910-0930 Inter-regional and RegionalPorts Co-operation, a Factor inPort DevelopmentK.D. BOATENGDirector General, Ports &Harbours Authority, Ghana

0930-1000 Panel discussion1000-1030 Coffee break1030-1200 Sub-Theme 2:

Port Organisation & FinancingChairman: Mohammed HALAB,President, UAPNA

1030-1050 Evolution of InstitutionalFramework & Port Reforms*Speaker - TBA (UNCTAD)

1050-1110 Ports Investment Financing :Collaboration between thePublic and Private Sectors*Speaker - (IAPH)

1110-1130 The Possibilities of FinancialAssistance in the Developmentof African PortsKoji FUJIMOTOExecutive Director for Africa, JBIC(Japan Bank for International Co-operation)

1st Pan-African Port ConferenceDec. 5-6, 2000, Abidjan, Côte d’lvoire

Organised by Port Autonome d’Abidjan

Under the co-auspices ofThe International Association of Ports & Harbors (IAPH)

AndThe Pan-African Association for Port Cooperation

Central Theme

African Ports Facing the Changes in International Transport:Challenges and Perspectives

PROGRAMME



1130-1200 Privatisation of Port Terminals:Examples

1130-1145 The Dar-es-Salaam ExperienceSamson LUHIGOManaging Director, Tanzania PortsAuthority

1145-1200 The MIPS Experience (Maputo)*Speaker - TBA(PMSESA)

1200-1230 Panel discussion1230-1430 Lunch

4th Session1430-1615 Sub-Theme 3:

Maritime Safety andSustainable DevelopmentChairman: Jean SMAGGHE,Immediate Past President, IAPH

1430-1500 Safety of Navigation, MarineEnvironment Protection andPort State Control

1430-1445 International RegulationApproach*Speaker - TBA (IMO)

1445-1500 A Port's PerspectiveP.C. van der KLUITIAPH Liaison Officer with IMO

1500-1520 Dredging for Development: ThePotential for Co-operativeActionPeter J.HAMBURGERSecretary General, InternationalAssociation of DredgingContractors

1520-1540 Cities and Ports Relations inAfrica: Conflict or SynergyProfessor Jacques CharlierUniversity of Louvain, La Neuve(Belgium).

1540-1600 Emergence of Hub Ports on theAfrican RangeGilfi PALSSONThe World Bank

1600-1630 Panel discussion1630-1700 Coffee break1700-1800 Closing ceremony

• Concluding Remarks• Conference conclusion• Port of the Future

Pieter STRUIJS2nd Vice President, IAPHClosing speeches

2000 Gala diner

Thursday, December 7, 2000

Morning Opening day: Port visit by thepublic

1230-1430 Lunch breakAfternoon Opening day: (continued)

Friday, December 8, 2000Morning Continuation of the opening

day1230-1430 Lunch breakAfternoon Sports

Saturday, December 9, 2000Morning Continuation and end of the

opening day

Conference Coordinating Center: The Secretariat, PMAWCA.12, Park Lane Apapa, Lagos, Nigeria. Tel &Fax: (234) 1 587 12 78

PETER Van der Kluit summarizes thejoint meetings in Marseilles

Further to the details of the discussion made atthe meetings of the Port Safety, Environment andMarine Operations Committee which met jointlywith the Dredging Task Force in Marseilles, Petervan der Kluit, IAPH European Representative andLiaison Officer with IMO, has recently sent a sum-mary of the meetings for the benefit of IAPH mem-bers, in particular for those who might have failedto read the minutes of the joint meetings whichwere featured in the previous issue of this journal.A report from Peter van der Kluit follows.

The meetings took place immediatelyprior to the mid-term board meeting thatstarted on May 16.

The extensive list of issues on the com-mittee’s agenda had made it necessary toplan two meeting sessions, on May 14and 15, respectively. They were jointlychaired by the newly appointedChairman, Fer van de Laar from the Portof Amsterdam and the immediate pastChairman, Peter van der Kluit. Ms.

Geraldine Knatz chaired the session onthe work of the Dredging Task Force.

The meetings were well attended:some 20 people had found their way tothe conference rooms of the Sofitel Hotelat Marseilles’ Vieux Port, and activelyparticipated in the discussions.

A large number of issues were dis-cussed at length and in the followingparagraphs the most important ones arehighlighted.

Mr. Jose Perrot from the Port of LeHavre presented details on the accidentwith the tanker Erika, that broke in twonear the French coast in December 1999causing severe pollution of the Frenchbeaches. In the wake of this event theEuropean Commission has proposed anumber of actions to avoid similar acci-dents to happen in the future. They areaimed at uniform enforcement of PortState Control regulations, uniform inspec-tions by Classification Societies and ascheme to phase out single hull tankersat a faster rate than envisaged by IMO.

The Committee endorsed the proposalsregarding Port State Control andClassification Societies, but firmly dis-agreed with the proposal regarding theearly phasing out of single hull tankers.Shipping being a global business, thismatter should be dealt with by IMO andregional actions should be avoided.

In view of that consideration, theCommittee decided to draft a resolutionthat was later approved by the IAPH/IMOInterface Group and endorsed by theBoard later in the week.

The resolution will be submitted to awide variety of international organiza-tions such as IMO, the EuropeanCommission and industry organizations.

The Committee further discussed thedangers of fumigated cargoes, especiallyif these are not properly notified to thereceiving port. It was decided that IAPHwould closely work together with ICHCAon this subject with the aim of making ajoint submission to IMO.

A lengthy discussion took place onIMO’s Working Group on the Ship/PortInterface, SPI. It was felt that thisWorking Group suffers from insufficientsupport from IMO member states andsupportive action is required to enhanceits recognition. A position paper that mayserve as a basis for lobbying in favour ofSPI was discussed and later in the weekapproved by the IAPH/IMO InterfaceGroup. This resulted in the decision to

Joint Meeting of the

Committee on Port Safety, Environment and Marine Operationsand the Dredging Task Force

in Marseilles on May 14 and 15, 2000



mail the position paper with an accompa-nying letter to the IAPH membership.

On the issue of co-operation betweenIAPH and other international organiza-tions, the meeting was informed about aninitiative of IAPH and ICS to establish anInter-Industry Shipping and Ports ContactGroup. This group will consist of repre-sentatives from shipping as well as shoreoriented organizations. A first meeting istentatively planned for September 2000.

An important item on the agenda con-cerned port certification. There is increas-ing pressure on ports to carry out a selfassessment on safety related issues in auniform manner, a sort of ISM-likeapproach (ISM: International SafetyManagement Code for ships). TheCommittee decided to embark on drafting“Port Safety Management Guidelines” forports wishing to do so. At a further stagethese guidelines will be discussed withrelevant industry organizations such asthose represented in the proposed Inter-Industry Shipping and Ports ContactGroup.

Other issues that were discussed insome detail included port reception facili-ties, ballast water management, contain-er top safety and dry bulk carrier safety.

Separate articles will be published ondry bulk carrier safety and ballast watermanagement.

Ms. Geraldine Knatz, Chair of theDredging Task Force, advised the meet-ing that IMO, as a result of budget restric-tions, is considering to cease providingsecretarial functions to the LondonConvention and as a consequence, theConvention might be transferred fromIMO to UNEP, the UN EnvironmentProgramme.

An important new development withinthe London Convention is the idea tomove into a new issue: “the placement atsea of matter for purpose other than dis-posal.” In normal language this meansthat the London Convention will wish todeal with the use of dredged material forbeneficial uses such as land reclamationand wetland or habitat creation. Thismatter will need careful watching byIAPH.

Finally, both the Committee as well asthe Dredging Task Force were pleased tonote that a number of potential newmembers had come forward requestingformal appointment; a most gratifyingand welcome development.

Note: a detailed report of the meetingis available on the IAPH website.

July 2000Peter van der KluitIAPH Representative in Europe

T HE Port Finance Seminar washeld over a period of two weeksfrom May 29 to June 9,2000 at

the Institut Portuiare Du Harve (IPER),France. Since its formation in 1977,IPER being a joint creation of the LeHarve Chamber of Commerce and thePort of Le Havre Authority continues toprovide high level training programmesamongst its other core activities attract-ing participants from all over the world.

I am grateful to Mr. Hiro Nagai,Assistant Under Secretary of IAPH andMr.Goon Kok Loon, Chairman of theIAPH Committee on Human Resourcesfor giving me the opportunity to attendthis intensive and comprehensive semi-nar by approving the IAPH bursary. Myparticipation in the seminar immenselywidened my perception and under-standing on port finance and its con-cepts and applications will furtherenhance value adding to my organiza-tion Penang Port Commission and theport industry in my country Malaysia asa whole.

Course Programme

1 The first week lectures were con-ducted by Mr. John Arnold on a vari-ety of subjects incorporating talks,case studies, discussion, exchangesof views and presentations by indi-vidual groups/teams. Notes andhandouts were used to supplementand support the daily lectures. Themodules encompassed the followingsubjects/topics:-

Introduction: Definition of Costs,Budgeting and Cost ControlThis session touched on basic typesof costs (namely, fixed and variablecosts), port costs, cost control mech-anisms, (i.e., labor, material and capi-tal), reporting controllable costs, costcontrol systems, types of accounting

Report on Port Finance SeminarInstitut Portuaire Du Havre (IPER), FranceMay 29, 2000 to June 9, 2000

Foong Yat WengInternal AuditorPenang PortCommission,Malaysia

systems, effective use of financialstatements, role of accounting sys-tems, structure of accounts, types ofaccounting systems, performancemeasures, controllable costs, costcenters, cost control systems, bud-geting and cash flows.

Observations : Pertaining to cost, itwas noted that payments of overtime should be viewed as an incen-tive for improved productivity andnot as an entitlement. In addition, itwas felt that productivity level is abetter performance measurementthan cost per tonne. Perfomancemeasures used are important in plan-ning the development of the port andalso used by outsiders to evaluatethe efficiency and profitability of theport. However, cost considerationsare normally more evident duringeconomic downturn whilst in boomtime cost is likely to be less feltbeing negated by increasing rev-enue.

Financial Ratios, Cash Flow Analysis,Capital Budgeting and PricingStrategiesThis session examines the objectives,functions and techniques of cashflow management, cash flow sys-tems, types of capital budgets,preparation of cash flow budget, pro-ject description, placement of cash,investments and application of finan-cial ratios, preparation, uses andgoals of capital budget, capitalinvestment targets, strategic pricing(value-based pricing), tariff revisionprocess and negotiations.

Observations: On investment onlong-term assets, the common use ofappraisal methods such as PaybackPeriod (PBP), Internal Rate of Return(IRR) and Net Present Value (NPV)should also take into account com-plementary attributes of all cashflows and not ignoring its timingmechanism whilst considering theassumptions. Budgets are not somuch about accounting but more ofa management tool. It was stressedthat prices structured on recovery ofcapital costs should be used to setoverall revenue targets instead of



setting prices.

Debt, Equity and Project FinanceThis session dealt with three maintopics, namely: (i) Debt, i.e., type,structure and characteristic of debts,commercial loans and debentures,cost structures and options of debts;(ii) Equity, i.e., types, characteristicsand sources of equity, self finance(internal sources), capital subsidies,capitalization and divestitures; and(iii) project finance including bonds,major types of loans and sources oflending.

Observations : It is noted that theissue of bonds is a common form offunding in the international fundsmarket. Where there is no localbond market it is still possible toobtain such funding on the interna-tional bond market after fulfilling cer-tain conditions. It was reportedrecently that efforts are beingmade to enhance greater liquidity toAsia's emerging bond markets.

Risk, Risk Mitigation and BankableProjectsThe session involved two main top-ics, namely (i) risk and risk mitigationinvolving sources, types, determina-tion of risks, techniques of riskmitigation and evaluation of mitiga-tion measures and (ii) bankable pro-jects encompassing economics, pro-ject preparation, risk allocation, tariffregime and regulatory authorities,concession agreement right as secu-rity for lenders , contractual disputeresolution and lender's due diligence.

2. Teamwork

There were nine participants in ourEnglish speaking groups comingfrom Gambia(2), Cambodia(1),India(1), Indonesia(3) and Malay-sia(2). We were grouped into threemain teams on the first day of theseminar session. The participantspracticed teamwork while interact-ing in the evenings preparing anddiscussing the assignments in hand.A member of the team chosen wasthen given the task to present theirwork assignment results in the fol-lowing day session involving (a) costcontrol structure for a landlord port;(b) pricing strategies for concessionand (c) financial plan for a containerterminal. In addition, the participantswere also given hands-on experienceinvolving practical work modelsusing computers at the laboratory of

IPER amongst which were (a) invest-ment in a bulk coal terminals 1, 2 & 3and (b) labor negotiations and redun-dancy analyses.

3. Port Visit

On the second day of the first weekof the seminar we visited the Port ofLe Harve by bus. Though it was rain-ing that day, the interest and enthu-siasm of the participants were notdampened. Also, the briefing givenby Madam Gruchy from the PortAuthority of Le Harve throughout thefield trip was very informative and alot of questions were asked especial-ly on port operations and the portstructure. The Port of Le Harve-Antifer is a rapid turnabout port andreceives the world's largest tankers.It has a vast complex of 5 containerterminals with 17 berths adapted toaccommodate the latest generationof containerships. In 1998, the Port ofLe Harve handled a total containertraffic of 1.32 million TEUs, comparedto a total container throughput of3.06 million TEUs managed byMalaysian ports of which Port Klanghandled 1.82 million TEUs. To sum-merize, the field trip was a goodexperience to all of us.

4. There were four (4) lecturers forthe second week who covered anumber of subjects/topics. Threemajor subjects were covered byMr. J. Grosdidier De Matons whoenoucraged participants to discussand put forward their views.

i) Economic Objectives of PortOrganizations (1), (2) & (3)The first objective of ports to max-imize their traffic and revenue issubject to (a) technical factors ofport traffic, (b) impacts on andtrend towards containerization, (c)geographic factors, (d) transportsystems, (d) types of cargoes, and(e) institutional factors of port traf-fic. For example, the capacity toaccommodate 4th-generationpost-Panamax container ships areexpected to have a capacity of 23KTS (4,000-5,000 TEUs) notwithstanding the emergence of ultra-large containerships of up to15,000 TEUs during the next twodecades. The second objective isoptimization of the transport sys-tem whereby ports are part of thetransport system of a country andof its hinterland. Thirdly, portsare also viewed as centres of

regional and national develop-ment as they generate addedvalue and create employment.Thus, their objective will be hereto impact on their economic envi-ronment.

ii) Financial Profitability of PortOrganizationsThis session discussed added val-ues in relation to Gross DomesticProduct (GDP), potentiative effectsand use of time sheets. The speak-er presented the financial state-ments in relation to the financialobjectives from the perspective ofassets and liabilities, revenuesand expenditures being either sta-tic or dynamic. In addition, it wasnoted that though the “value ofstaff” is an added value but it isnot taken into account in anyfinancial statements analyses.Explanations and illustrationswere given on the mathematicalforecasting techniques (whichinclude (i) free hand method and(ii) straight line method), themethod of semi-averages, themethod of moving averages andthe method of least squares.

iii) Financing Port ProjectsThis session focused on the multi-lateral lending agencies assources of finance for containerterminal projects such as theInternational Finance Corporation,the Asian Development Bank, theCommonwealth DevelopmentCorporation and the EuropeanBank for Reconstruction andDevelopment. Other sources dis-cussed include insurance compa-nies, stock exchange floats, ven-ture capital, pension funds, exportcredit finance and lease finance.

Mr. Gustaaf De Monie delivered four (4)major subjects covering a varied scopeof issues by way of lectures, illustra-tions, case studies and discussions.Notes and handouts were used to sup-plement the daily lectures.

(a) Traffic Forecasting : Theory and Practice (1) and (2)This session examined the twobasic approaches to forecastingwhich included (i) top-down –from world economy to port tar-iff and (ii) bottom up – fromgrass root to port traffic. In addi-tion to that, the speaker spoke inlength on the strengths andweaknesses of the two forecast-



ing approaches. He completedthe session by elaborating on theforecasting procedures explain-ing and the steps that wereneeded to be followed.

(b) Port Project Evaluation :Theoretical Concepts (1) & (2)This session began with anunderstanding of the seven (7)phases of a port project. Portinvestment appraisal normallyincludes both (a) financial analy-sis and (b) economic analysis.Subsequently the session exam-ined aspects of the economiccosts of resources, shadowprices, economic benefits, laborcosts, comparison of costs andbenefits, possible benefits of aport investment project, directbenefits to the port. An exampleusing “Port Evergreen,” a ficti-tious port, was used to illustratewhether transaction is economicor financial in nature or both. Thelast part of the session examinedand discussed the elements ofinflation, uncertainty and risks inany project appraisal. Interestrates and discount rates of themoney market were taken up inthe discussion of uncertainty andrisks including sensitivity analy-ses and timing of investment .

(c) Port Project Evaluation: Practicalcase studies (1) - (4)For this part of the session, theparticipants were given results ofthe case studies in relation to anon-existent port called “ThePort of Kangaroo” entitled“Comparisons of InvestmentAlternatives to Meet GrowingDemand for Port Services.” Afteran initial introduction, we weregiven time to study the results ofthe case studies in the eveningsand encouraged to participate inthe discussions on the answersin the following day sessions.The speaker was very patient inexplaining and guiding theparticipants individually through-out all the case studies. Thecase studies gave us an opportu-nity to put the theories learntearlier on port evaluation intopractice.

(d) Tariffs for General Cargo andContainer Handling (1) and (2)This session essentially exam-ined four (4) main issues, name-ly:

(i) Pricing policies which arebasically revenue-driven,market-driven or efficiency-driven.

(ii) Alternative pricing baseswhich examined the varioustariff bases,

(iii) For instance, tariffs based onthe level of dues and chargesset by the port leader indus-try, e.g., Port of Singapore forthe Asean region and Rotter-dam for Europe.

(iv) Advantages of adequateport authority charges whichinclude less external interfer-ences, reduction of govern-ment deficits and a strongerbargaining position withlending agencies.

(iii) Specific pricing objectiveswhich are (1) financial objec-tives, (2) marketing objec-tives, (3) performance objec-tives and (4) socio-economicobjectives.

Mr M. Baux traced the historical evo-lution of the French ports organiza-tions beginning from the time whenFrance was a kingdom (decentraliza-tion) till the establishment of the pre-sent port organization. The basicfeatures of the autonomous portorganization discussed include (a)organization and (b) financial sys-tems. In addition to general servicesand specific services offered by anautonomous port, there are twoother functions assigned, namely, themanagement of superstructures andthe management of state-owned landby leasing the public domain withinits administrative boundaries.In Malaysia, Klang ContainerTerminal was privatized in 1986 mak-ing it the first government, ownedport facility to be privatized in thecountry. Following that the PenangPort Commission which was estab-lished on January 1, 1956, has itsport operations and ferry servicesprivatized on January 1, 1994. Theconcession was granted to a privateport terminal operator, the PenangPort Sdn. Bhd. Nevertheless, thePenang Port Commission continuesto exist as a port authority and alsoundertakes two other major roles asa regulatory authority and as a portresource centre for the northern area.On January 1, 1999, the Penang PortCommission’s jurisdiction has beenextended to Teluk Ewa, Langkawiand Kedah. The other speaker, Mr. Patrick

Faurant delivered two main topics inrelation to the Port of Le Harve asbelow:-

(a) Port Dues on Vessels and Cargoesin The Port of Le HarveThis session dealt with threemain aspects, namely:-(i) Economic impacts in turn

relate to two aspects whichrefer to the importance of portdues in the port revenues andthe share of port dues in themaritime transport total cost.

(ii) Legal aspects of port dues InFrance – In France, the portdues are levied by theCustoms authorities and therevision of tariffs is doneannually. In Malaysia, portdues are collected by the rel-evant port authorities in non-privatized ports and by thelicensed port operators in pri-vatized ports. Also, the ceil-ing of Malaysian port dues ispre-determined by the Malay-sian Government and gazet-ted.

(iii) The calculation of port dueswhich examined the basictariff calculation.

(b) Tariffs for Liquid and Solid BulkHandling in The Port of Le HarveThis session was delivered bythe use of charts, tables andmaps illustrating and examiningthe impacts, trends and signifi-cant statistics pertaining to thefollowing main areas, namely (i)importance of bulk in the worldsea borne trade, (ii) importanceof bulk in Le Harve Port trafficand (iii) importance of bulk in theLe Harve Port revenues.

5. Lecturers

The lecturers for the seminar were abalanced mix of both local and for-eign nationals who were friendly,very experienced and knowledgeablein their respective fields. The lec-tures were conducted in fluentEnglish and were very informative.The lecture room was comfortable forlectures. We, the participants ingeneral, were able to seize thisopportunity to tap into the expertiseand knowledge of these speakers onthe various topics or subjects fea-tured in the seminar preparing us tomeet challenges of and changes inthe port industry ahead.



6. Conclusion

Personally, I, as an internal auditorwho is fairly new to the port industry,finds the seminar very interestingand beneficial which gave me a closerinsight and a better understanding ofport finance concepts and applica-tions to the port authority where I ampresently employed, especially on (i)port objectives, (ii) port project evalu-ation, (iii) terminal pricing, tariffs andfinancing, (iv) budgeting, cost con-trols, traffic and expenditure, (v) trafficforecasting-theory and practice and(vi) risks and risk mitigation. Theseminar also gave me an opportunityto meet participants from ports ofAfrican and Asian countries fromboth English speaking and French-speaking groups whereby we wereable to interact, share, learn from eachother, compare differences in portpractices and exchange experiencesduring the two weeks together.

7. Appreciation

In conclusion, allow me to expressmy deepest appreciation once againto IAPH, Mr. Hiro Nagai, AssistantUnder Secretary of IAPH and Mr.Goon Kok Loon, Chairman of the IAPHCommittee on Human Resources formaking it possible for me to attendthe seminar (which was my first sem-inar overseas) and not forgetting ourGeneral Manager, Penang PortCommission, Y. Bhg. Dato’s CaptainHaji Abdul Rahim bin Abd. Aziz forproposing me for this seminar, Y. Bhg.Dato’ Zaharah Shaari, Secretary-General, Ministry of Transport ofMalaysia and Y. Berusaha EncikAbdul Rahman bin Mohd Noor,Deputy Secretary-General, Ministry ofTransport of Malaysia for approvingmy application. My sincere apprecia-tion to Mr. Jean Bihan, Director ofIPER, Madam Claudie Hedouin andstaff of IPER whose warm welcomeand kind assistance made my stay inLe Harve, France, a memorable one.

T AKAO HIROTA, an IAPHactivist, former Excomember and a member

of the Committee on LegalProtection (CLP), was one of therecipients of the 2000International Prize of the JapanSociety of Civil Engineers (JSCE)for his contribution to the devel-opment of civil engineering in and out-side Japan. The commendation ceremonytook place on May 26, 2000 on the occa-sion of the annual conference of the JSCE.According to a JSCE official, the interna-tional prize was created in 1995 in com-memoration of the 80th anniversary of thesociety, and this biennial prize has beenconferred on 12 people, and this yearHirota and two other people, includingone from the Philippines, received theprize in recognition of their internationalcontributions.

Hirota’s career in the field of interna-tional cooperation has been most distin-guished.

He has been at the forefront of Japan’sinternational cooperation initiatives forthe past 27 years, during which period heled or served as a member of more than40 research or study missions. He servedon the ESCAP (formerly called ECAFE)from its initial stage as a key member ofits port survey team and the AsiaDevelopment Bank and contributed to theeconomic development of the Asian andPacific countries through the region’s portdevelopment. In his capacity as JapanInternational Cooperation Agency’s socialdevelopment director, he participated inthe establishment of the social capitalplan and guided the developing countriesin their human resources developmentprograms.

For nine years from 1982, he represent-ed the Japanese government as AlternateDirector of the “Panama Canal

Alternatives StudyCommission,” a tripartite com-mission composed of membersrepresenting Japan, the USAand Panama, during which peri-od he contributed to the estab-lishment of alternative plans toincrease the efficiency of vesseltraffic. As Director General of

OCDI (Overseas Coastal DevelopmentInstitute of Japan), he assisted emergingmembers. Applying his rich experiencesand expertise, he is currently working forthe Japan Bank for InternationalCooperation as its senior technical advi-sor.

In the IAPH theatre, Mr. Hirota hasbeen active in the development of variousinternational rules and cooperation pro-grams, including the international law forinsuring against damage from oil spillaccidents and the “US-Japan Conferenceon Development of Natural Resources(UJNR).”

The other recipients of the 2000 JSCE Awardincluded:Outstanding Civil Engineering Achievement Award

Group I: Project: The construction of the“Kobe Port Island Tunnel” to sup-port the lifeline for the manmadeisland

Recipients: The 3rd Ports and HarborsConstruction Bureau, MOT, and thePort of Kobe

Group II: Project: The construction of a portas an international distribution cen-ter supporting the logistics chain inthe metropolitan area – The speedyconstruction of a large-scale anddeep-sea port facing the PacificOcean.

Recipients: The 2nd Ports and HarborsConstruction Bureau, MOT, andIbaraki Prefecture

Takao Hirota Awarded JSCEInternational Prize

Visit the IAPH website to access information about the Association’s wide ranging activities, thebenefits of membership, how its worldwide members work together to help ports in developingcountries and what’s new. The websites of major ports are also accessed via the IAPH website.

http://www.iaph.or.jp

Based on the agreement concludedbetween IAPH and the IAPHFoundation, a Japanese corporation, theIAPH head office members and thosebelonging to the Foundation have beenclosely working together as a team in



O N the evening of Friday, June30, a farewell dinner was host-ed by the IAPH head office

members for Ms. Izumi Hayashi whohad been working for the IAPHFoundation since 1976.

carrying out their respective day-to-daywork programs over the years. Hayashiwas an active and experienced memberof the Tokyo head office team. In addi-tion to her responsibility for managingthe documents and publications, whichthe head office and the foundationreceived from various sources, Hayashilooked after the updating of the mem-bership records and prepared the annu-al membership directory. She wasprodigious in recalling all the peoplewho had once appeared in the IAPHarena, not just the past presidents andofficers but almost everyone who hadbeen associated with IAPH.

Dr. Inoue, Secretary General, onbehalf of all her colleagues at the headoffice, thanked her for her dedicatedservice and wished her good health andall success in her next challenge afterleaving IAPH. Hayashi, in appreciationof the farewell dinner and the gift shehad received from her colleagues, com-mented: “I enjoyed working for thisunique organization for nearly a quarterof a century and learned a lot throughmy work and meeting with IAPH mem-bers on various occasions. Afterrecharging my batteries for a fewmonths, I will do something new,although I must admit that my lifestylewill become less relevant to the IT soci-ety.”

Izumi Hayashi bids farewellto her IAPH friends

Hayashi with a bouquet of flowers presented by her colleagues, sandwiched between SecretaryGeneral Inoue (left) and former Secretary General Kusaka

ObituaryBen E. NutterIAPH Founder andHonorary Member

O N July 26,2000, theT o k y o

head officereceived a copy ofthe Lloyd’s List ofthe same date from Peter van der Kluit,our European representative, to learnthat Ben E. Nutter, an IAPH founderand honorary member and formerExecutive Director, Port of Oakland, hadrecently passed away. He was 89.

In the Lloyd’s List news, Mr. Nutterwas referred to as “port developmentlegend and container pioneer” and amajor force in the development of con-tainerization. His career is describedbelow:

[ from Lloyd’s List dated July 26, 2000 ]

“A civil engineer by profession, hecut his teeth in the port sector inHawaii, where he became superinten-dent of public works and chairman ofthe Harbor Board.

He arrived in San Francisco Bay andthe peripheral port of Oakland in 1957,when this port was a general cargofacility handling around 2.5 million tonsper annum.

When he retired 20 years later in 1977the Bay port had become a major forcein containerization and was handling8.5m tons per year.

Nutter was at the forefront of many ofthe battles, which the proponents ofthis new method of cargo handlingfound they could not avoid.

The labor unions were ferociouslyopposed to containerization, and at onetime threatened to require the contentsof boxes to be handled on the quay-sides where they were landed.

There was often local reluctance toinvest in containerization, which the

demands for land and deep water wereconsidered.

Ben Nutter somehow managed tocope with all of these problems andbefore he retired (for the first time in1977) had managed to build up the Portof Oakland into the third biggest con-tainer port in the world, centered on the140 acre Seventh Street Terminal creat-ed by reclamation.

The Oakland International Airportwas also his legacy. The Californianport, which had managed to attractSealand, Matson, Johnson Line andother container pioneers to its facilities,became a victim of intense environmen-tal pressures in the 1980s, with objec-tions to further dredging and reclama-tion schemes slowing development.

Nutter by then had retired but soonestablished a reputation as an interna-tional port consultant.

With container terminals spreadingaround the world, he was to becomeestablished as a ‘guru’ of expertise inthis specialist sector.

His legacy lives on in dozens of ports



throughout the world, but the Ben ENutter Terminal in the Port of Oaklandwill perpetuate his name.”

For IAPH members, too, Nutter was agreatly admired figure, whose leg-endary contribution to the formationand later development of IAPH hasbecome widely known among the suc-cessive officers and members not onlythrough the history book of IAPH butalso through contacts they may havemade at conferences and other events,where Nutter with his wife Reone wereregular participants. Starting from theinaugural Conference of IAPH held inHollywood in 1955, Mr. and Mrs. Nutterattended all conferences except for justone (the 2nd in Mexico City) until the20th held in Seattle/Tacoma in 1995.

He served as an Exco member (1963-1977), chaired the Committee onContainerization (1963-1977) andencouraged IAPH ports to developthrough containerization. At its 10thconference held in Houston in 1977,IAPH elected him as an HonoraryMember, and in this position heremained as a member of theCommittee (now renamed the CargoOperations Committee) and inspired hisyounger colleagues serving on it.

At the 12th conference held inNagoya in 1981, which marked the 25thanniversary of the foundation of IAPH,Nutter was one of the 13 recipients ofthe silver jubilee commendations. As aluncheon speaker, He recalled his longassociation with IAPH. His speech ispartly presented below.

“In the early 1950s, quite a number of

port people hadbegun to sensethe need for aworldwide associ-ation of ports andharbors. The lead-ership in the ini-tial thrust camefrom a man whomwe came to know,to trust and toadmire: GakuMatsumoto. I firstmet him in 1952,and periodicallythereafter, as he crossed the Pacific, viaHawaii, to discuss the formation andthe beginning of our organization. Hestopped in Hawaii several times enroute to the mainland US to hold discus-sions with us at the Hawaii HarborBoard, where I was, at first, AssistantManager, and later Chairman of thatsix-port organization. These conversa-tions at first seemed to be leadingtoward Japan/Hawaii/California, aPacific basin-oriented type of organiza-tion. Later, as Canada, the easternUnited States, England, Sweden, andothers began to enter the picture, itwas clear that it was being acceptedinternationally and was on its way.”

Nutter continued, “A quarter of a cen-tury after the official beginning andwith a quarter of a century of growthand of service to the ports and harborsof the world now behind us, much ofour success is because we have beengreatly favored by the initiative and thegreat efforts of our secretaries-general,

our past presidents, our current officersand all of those who work so ably in theTokyo head office. We have all benefit-ed from, and greatly enjoyed our confer-ences as well as mid-term meetings ofthe Executive Committee, Internal andTechnical Committees. They haveoffered us the tremendous opportunitiesof technical and social contacts. Everyconference has been outstanding as avery special event. I personally recallthem all, but one, and with the greatestof pleasure.”

Nutter ended his speech asking allpresent to stand and toast, and paidtribute to the founding fathers andwished everyone there continuing suc-cess in their endeavors in running theirrespective ports and leading thisunique organization of world ports.

On behalf of the secretary general, R.Kondoh, jointly with Kimiko Takeda,sent a letter of condolences to Mrs.Nutter through the Port of Oakland.

Mr. and Mrs. Nutter at the Sydney Conference in 1993

Membership NotesNew MembersRegular MemberChennai Port Trust [Regular] (India)Address: 1, Rajaji Salai, Chennai - 600 001Mailing addressee: P. Baskaradoss, I.A.S., ChairmanTel: +91 44 5361086, 5361330Fax: +91 44 5361228Website: http://www.chennaiporttrust.comSecretary: C. VenkatachalamChief Engineer: M.P. Kanakasabai

Temporary MemberSea-Port of Vlora (Albania)Address: Porti Detar “3 Shtatori” VloreMailing addressee: Petrit Tafili, General DirectorTel: +355 63 2 9417Fax: +355 63 2 9417E-mail: [email protected] supervisor Peter McEwen

Changes (Changes involved are underlined)The Chittagong Port Authority [Regular] (Bangladesh)Chairman: Commodore Ghulam Rabbani (IAPH

Director from Bangladesh)

Ports and Harbours Bureau, Ministry of Transport[Regular] (Japan]Address: 2-1-3 Kasemigaseki, Chiyoda-ku, Tokyo

100-8989Mailing addressee: Susumu Naruse, Director, International

Affairs Office (IAPH Director from Japan)

Maldives Ports Authority [Regular] (Maldives)Mailing addressee: Ismail Shafeeg, Managing Director

(IAPH Director from Maldives)


W ORLDWIDE, port state controlis recognised as the mosteffective tool to combat unsea-

worthy and sub-standard shipping – thenotorious “ships of shame”.

The Australian Government and itsregulatory agency, the AustralianMaritime Safety Authority, are commit-ted to preserving the marine environ-ment and protecting life and property atsea, and it does this by implementingrigorous and effective port state controlregimes.

Recently Australia was at the forefrontof moves to lift the inspection rate from50 per cent to 75 per cent for the Asia-Pacific region – an initiative taken underthe Tokyo Memorandum ofUnderstanding – and although Australiarecognises that some ports such asSingapore and Hong Kong may needtime to reach this target, a start hasbeen made.

AMSA’s manager, ship inspectiongroup, Mr Trevor Rose, says Australia'sown inspection rate is already around 60per cent and rising.

Australia’s detention rate is falling sig-

nificantly, but much remains to be done.Unfortunately it remains a fact that thatsome flag States are still either unwillingor unable to implement their internation-al maritime convention responsibilities.AMSA believes that the long-term solu-tions to the problems associated withunseaworthy and substandard ships canonly be found through concerted interna-tional action by individuals, organisa-tions and governments having responsi-bility for ship safety

This view is shared by ESPO -- theEuropean Sea Ports Organization --

which recently declared itself in favour ofa uniform global approach as initiatedalready through the InternationalMaritime Organization's Marpol 13F and13G regulations.

The executive director -- managementboard, Port of Rotterdam, Pieter Struijs,said in a recent paper to ESPO:“Tightening of Port State Control rulesseems logical and acceptable, althoughit may mean an extra burden for themember states’ inspection authorities.The ERIKA accident has made it clearonce again that there are unacceptabledifferences in the implementation of thePort State Control rules.”

In Australia, there has been no needfor this sort of wake-up call. Safety andenvironmental issues have long been onthe agenda. During 1999, for example,2753 inspections were carried out onships from 62 countries. Bulk carriersconstituted the majority of inspectionsby ship type (about 57 per cent) whilecontainer ships, general dry cargo ships,oil tankers and vehicle carriers regis-tered a substantial portion of inspectionsat about 27 per cent.

In 1999, 144 ships registered in 36countries were observed to have defi-ciencies sufficiently serious to impairtheir seaworthiness and warrant deten-tion.

For further information, visit AMSA’sweb site: www.amsa.gov.au and fol-low the link to Maritime Operations.

Shopping the Ships of ShameAustralian Maritime Safety Authority (AMSA)

25422901 3131 2964 2753

1995 1996 1997 1998 1999

3500

3000

2500

2000

1500

1000

500

0

Fig. 1 Number of Inspections

Bulk carrier 57%

Livestockcarrier 3%

Dry cargoShip 7%

Oil tanker 6%

Vehicle carrier 4%

Others 10%Chemical tanker 2% Container ship 11%

•••

••

•• •

Fig.2 Percentage of inspections by ship type

Container ship 8%

Bulk carrier 59%

Livestock carrier3%

Dry cargo ship 11%

Oil tanker 3%Others 4%

Vehicle carrier 12%

••••

••

•

Fig.3 Detention percentage by ship type

9685

65 6853

1995 1996 1997 1998 1999

10

8

6

4

2

0

Fig.4 Annual detention rates

O P E N F O R U M


E U R O P E A Nports remainmajor players

in the port activity ofthe world. Europeanports dynamics isanimated by shipowners' alliances orby international handling groups. Theseports benefit from the phenomenon ofglobalization.

Europe and the rest of the worldThe distribution of the world port traffic

- about 148 million TEU in 1996 - showsareas of growth. Northern Asia with over43 million TEU in transit holds the firstplace in the world. Europe, with 25% of

European Container ports facing thechallenges of globalization

ISEMAR-Institut Suepérieur d’Économie MaritimeNicolas Terrassier, Managing Director

✕

✕✕

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✕

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✕

✕

✕ Middle East (12%)✕ Central & South America (12%)✕ Australia/NZ (12%)

Europe (7%)

North America (6%)

Northern Europe (6%)

Japan (7%)

Africa (6%)

South Europe (10%)

North Asia (11%)

Hong Kong, Taiwan, South Korea (12%)

South Asia (15%)

China (19%)✕

✕✕

50

45

40

35

30

25

20

15

10

5

5 6 7 8 9 10 11 12 13 14 15

World Average Yearly Growth from 1990 to 1996 : 10%

Traffic in million TEU

Tcam1990-96

Northern Asia: Hong Kong, Taiwan, South Korea (NPI) + China + JapanSource : Isemar from DRI/Mac Graw Hill

0

Average growth rate level by region between 1990 and 1996

Regional share of world traffic for containers in 1996

NorthAmerica15.3%

Central &South

America5.1%

Africa1.6%

Europe21.5% Middle

East6.3%

Northen Asia29.6%

Southern Asia14.7%

Australia/NZ2.2%

Source: Isemar from Containerization International - CI

port traffic, holds the second place aheadof North America with 15.4%.

The average annual rate of growth forthe traffic of containers in the world wentup 10% from 1990 to 1996. We can noticeregional differences. Europe, with anaverage annual growth rate of 7% is out-stripped by most other regions except forNorth America and Africa.

O P E N F O R U M


Barcelona, Valencia where 80% ofthe traffic is directly distributed tothe continent.

The row of Northern European ports(The Continent and British Isles) showsa different type of development. A largepart of the traffic is concentrated in afew large ports (56% of traffic for thefirst top ports of the continentalNorthern Europe range with an averageglobal transshipping rate of 25%). Thetransshipping rate for Rotterdam is 40%,35% for Hamburg and Antwerp, 25% forFelixstowe and Bremen and 14% for LeHavre.

• The evolution of European traffic fac-ing hub ports and port networksThe geographical situation of ports -

favorable to traffic concentration in theNorth - is not enough to justify the dif-ference between the two regions.Northern Europe "mature" port sectoroffers less leeway for the strategies ofport operators than Southern Europeports that are "taking off" and are afavored ground for becoming special-ized ports responding to the needs of aspecific operator or ship owner. Theseinvestments respond to a double logic.

The creation of network of ports –Ship owners rationalize their servicesaround main and secondary ports. Someowners apply themselves to buildingdedicated terminal networks in order toimprove the productivity of their opera-tions. Maersk/Sea-Land follows such astrategy on the south-west1 routes andMSC ship owner along the north-south

Growth in North and South Asia hasbeen steadfast. The port traffic of con-tainers is taking off; its annual trafficgrowth being 19% over this period.

• We might be tempted to explainthese differences by the impact oftransshipment. Yet, taking this intoaccount decreases traffic distributiononly partially. The insularity of theAsian region remains an explanationfactor.

• Traffic distribution in Europe The distribution by row of traffic in

Europe continues to be marked by twoco-existing central markets: Northernand Southern Europe and two peripher-al markets: the Atlantic Coast and theBaltic Sea.

The average annual growth has beensteadier in the Southern ports (10%)than in the Northern ones (6%) from1990 to 1996.

• The emergence of Southern Europeis based on a development model pre-senting two characteristics (see oppo-site chart)

1) The traffic concentration rate isamong the lowest compared to

% Share inworld traffic

Regionaltransshipping

rate

Amendedtransship.

rate

North Am. 15.4 7 18.9

Europe 25.1 25 24.8

Asia 44.3 30 40.6

Central Am. 5.1 10 6.0

Africa 1.6 26 1.6

M-E 6.3 33 5.6

Aus./N.Z. 2.2 2.5 2.9

1996 Regional Share(excluding transshipping)

Source: ISEMAR from CI and Drewry Shipping Consultant

TEU % TEU %

Southern Europe total 6.8 29 12.7 35

South Med. 1.3 6 2.4 7

North Med. 4.7 20 9 25

Elsewhere Med. 0.8 3 1.3 4

Northern Europe total 14.1 60 19.9 54

North Cont. Eur. 9.8 42 14 38

British Isles 4.8 18 5.9 16

Atlantic Coast 0.9 4 1.25 3

Baltic 1.7 7 2.8 8

Total 23.5 100 36.65 100

1990 1996

Source: ISEMAR from CI

Distribution by row of Europeantraffic in million TEU and

% of the total

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✕ ✕

✕

✕

✕

Rotterdam

Hamburg

Antwerp

Felixstowe

Bremen/Bremerhaven

Le HavreBarcelona Valencia

Algeciras

Genoa

Gioia TauroGioia Tauro

7000

6500

6000

5500

5000

4500

4000

3500

3000

2500

2000

1500

1000

0 5 10 15 20 25

Traffics in thousands of TEU in 1998

Average yearly growth rate from 1990 to 1998

Source: Isemar from CI

Average annual growth rate from 1990 to 1998 for Europeanports of over one million TEU in 1998

Concentration 0-20 20-30 30-40 +40%

0-30

30-50 North Am.South Am. South Eur.

50-70North Asia

AfricaNorth Eur.

+70% MiddleEast South Asia

Transshipping

Source: ISEMAR estimate from CI, Drewry and ports

Share of traffic for the firsttop 4 ports and transshipping

traffic in the region

other regions in the world. The firsttop 4 ports of the region make up34% of the traffic in the SouthernEurope area.

2) The transshipping traffic rate of theregion is among the highest in theworld. A dual development model of trafficappears in Southern Europe.

1) On one hand we notice the emer-gence of ports specialized in trans-shipment traffic. Mainly, Algecirasin the Western Mediterranean andGioia Tauro on a lesser scale withrespectively 80 and 65% in trans-shipping traffic. New specializedports are being created such asCagliari in Sardegna or Taranto inSouthern Italy.

2) On the other hand, there is anexpansion of ports whose container-ized traffic activity is made up oftransshipment traffic and serving amore or less wide hinterlanddepending on available land con-nections. This is the case for Genoa,

O P E N F O R U M


routes2 . The constitution of alliances and

mega-alliances changes traffic distribu-tion. If we look at North-Atlantic ser-vices, the main Southern ports men-tioned are touched by 1.8 services, inaverage, out of the 4 services offered bymega-alliances, while the mainNorthern ports are touched by 3 out of 4

on average. The loose distribution ofmega-alliances’ services in continentalNorthern Europe does not encouragethe emergence of large specializedports contrary to Southern ones. [theauthor thanks P. Cariou for his contribu-tion].

The creation of port network-com-panies – integrated by owing capitalsin a group or a common holding Co.,international handling groups are beingformed. Through its multiple participa-tion, Hutchison Port Holdings has thus

Services Marsaxlook

GioiaTauro

Valen-cia

Alge-ciras

LeSpezia

Mar-seilles

Large Alliance-PAX

✓

Maersk/Sea Land-Med Gulf Express

✓ ✓ ✓ ✓

Maersk/Sea Land-Suez Express

✓ ✓

United Alliance-Pendulum AMA

✓ ✓ ✓ ✓

Number ofcontacts 2 3 2 2 1 1

Example -Transtlantic Services

Southern Europe PortsTouched by capacity <<alliances>>

Service Antwerp Bremen Rotter-dam

Felix-Stowe

LeHavre

Large Alliance-PAX

✓ ✓ ✓

Maerskpendulum

✓ ✓ ✓

Sino-JapaneseAlliance

✓ ✓ ✓ ✓ ✓

United Alliance-Pendulum AWE-PDM

✓ ✓ ✓ ✓

Number ofcontacts 2 4 4 2 3

Northern European Ports’Touched by capacity <<alliances>>

Ferry Boats(SNCB)

�

ECT

HollandTerminal

BLGEUROKAI

ContshipEurope

Contship Italia

Freeport Cop.of Malta

USA, Panama, Vietnam,Thailand, India

EvergreenTaiwan

Medconter

Gioia Tauro

TarantoSalerno

Napo

Brindis

Laativa, project:Vietnam

Official statement forseeking European

partners

Baltic countries

Joint ventures - Maersk/Sea-Landfor dedicated terminals

Hamburg

BremenJoint ventureEUROGATE

Germany

Rotterdam

AntwerpGhentZeebruge

Belgium

Dunkirk

Rouen

Southampton

ThamesportTilbury

HarwichFelixtowe

United Kingdom

Larne

Ireland

China, Bahamas, PanamaIndia

Port of Rotterdam+ABN - Amro

Egypt

51%

51%P&O PortAustralia

Australia,Philippines,

Thailand,Pakistan,Sri Lanka,

India,Argentina,

Mozambique

Katoen NatieBelgium

MSC Espana + Spanish consortium

Bilbao

SpainPortugal

USA, UAE, Thailand,Taiwan, China, Japan

Lisbon

Sines

Algeciras

Liseont

Maersk/Sea-LandDenmark/USA

China, India, Yemen,Indonesia

PSASingapore

Fint 40% 60%

Sinport

GrupeInvestirnenti

PortuariiItalia

100%

100%

Cagliari

Sardigna

Vecon

Molo VII CT

La Spezia ContainerTerminal

Italia

La SpézilGenoa

Trieste

Venice

100%

100%

66.5%

PB

• concession• sea ports terminal

France

South EuropeanContainer Hub

Voti TerminalsEurope

Ship owners

+ MSC+ CPShips

Hessenatie +Noord Natie

Belgium

HHLA

Med. Internationaltranshipment hub

HutchisonPort

HoldingsHong Kong

– EUROPE –The Globalisation of Cargo Handlers in Container Ports

gone from 4 million TEU handled in1991 to nearly 14 million today that isabout 10% of the worldwide containertraffic. Other handling groups havebeen forming on a worldwide scale(Synthesis n°1 www.isemar.asso.fr).

The European port network is nowmade up of numerous participationshares from large international groups.

1) The ports of Yokohama, Dalian, Quingdao,Kaohsiung, Rotterdam, New York,Baltimore, Rio Haina, Long Beach, Oakland,Tacoma.

2) 11 transshipping ports: Antwerp,Felixstowe, Le Havre, Pireus, Durban, NewYork, Freetown, Santos, Jebel Ali,Singapore, Sydney.

3) The port of Hamburg is touched by alliancesthrough its links with the Middle-East butnot North Atlantic.

4) 17 terminals in the world: 8 in China, 3 inEngland (Felixstowe, Thamesport andHarwich), 2 in Panama (Cristobal, Balboa), 1in Malaysia, 1 in the Bahamas (Freeport) and2 in Hong Kong. The 35% buy-out of ECT(Rotterdam principal operator) is subject toapproval of the competitors’ regulationauthorities.

O P E N F O R U M


A port dynamics is coming to life on aEuropean scale in and between ports.The absence of some ports from theseinternational happenings certainly con-stitutes a drawback for their future.

As shown on the map, a web ofinternational cargo-handling groupsshapes the future of the European con-tainer port industry. There are threetypes of cargo-handling groups - i)international groups such as Hutchison,P&O Ports or PSA, ii) ship owners oper-ating dedicated facilities such asMaersk SeaLand iii) European-basedgroups such as Eurogate which is ajoint-venture between Eurokai inHamburg (Germany) and BLG inBremen (Germany). The following tablegives another insight into the Europeancontainer cargo-handling industry.

Main global operators in EuropeOperator Locations Hutchison Port

Holdings Felixstowe, Thamesport,Harwich, Rotterdam P&O Ports Tilbury,Southampton, Antwerp, Genoa, Naples,Cagliari, Larnes, PSA Genoa, Venice,Leghorn, Rome, Maersk SealandAlgeciras, Gioia Tauro, EurogateBremen, Hamburg, Gioia Tauro, LaSpezia, Salerno, Liboa.

The shape of European containercargo-handling is changing at an accel-erated pace. The recent merger ofHessenatie and Noord Natie in Antwerpand the entry of P&O Ports in the port ofAntwerp traditionally operated byBelgium interests illustrate the growingimportance of international groups inthe container-handling industry.

Becoming integrated in internationalnetworks

Northern and Southern Europeanports have established themselvesusing two different models of develop-ment. Traffic in these ports is not beingthreatened, but to the contrary, takesadvantage of ship owners' strategiesthrough the distribution of maritime ser-vices - alliances - or participatingshares in international port operators. Adevelopmental model remains to beinvented in the surrounding regions.

This developmental model rests nec-essarily on integrating internationalport networks and getting participatingshares in operating ports.

The development of feeder networksor tramping, the creation of <hubs> toserve regional markets is the first stepstoward a greater integration.

Nicolas Terrassier Managing director, ISEMARwww.isemar.asso.fr

Workshop on Intermodal and Interoperable Transport Standardization in Europe

December 14, 1999

A BRIEF REVIEW OF LEGAL PROBLEMSIN MULTIMODAL TRANSPORT

Prof. Dr. Ralph DE WITLecturer at VUB (Vrije Universiteit Brussel, Brussels University)

Associate, Van Doosselaere Advocaten, Antwerp

Note: The author is always grateful for any comments or criticisms regarding the present text. He maybe contacted at the following addresses:

• VUB, Department for Private Law, Room 4C344, Pleinlaan 2, B-1050 Brussels, Belgium• Van Doosselaere Advocaten, Lange Gasthuisstraat 27, B-2000 Antwerp, Belgium• E-mail: [email protected]

1. Definitions. A brief description ofthe various expressions used

throughout the present text would appearuseful.

A contract for the multimodal or com-bined carriage of goods contains an under-taking by a carrier, who is called the multi-modal or combined transport operator(M.T.O. or C.T.O.), to perform carriage ofgoods by at least two different modes oftransport from the place where the goodsare taken in charge to a place designatedfor delivery1. A similar definition is given inthe New Dutch Civil Code, which containsa comprehensive statutory regulation ofmultimodal transport2. The same is nowtrue of the new German transport law,which is not yet analyzed in the presenttext.

Multimodal or combined transport isopposed to unimodal transport, which isthe transport of goods by one mode of car-riage by one or more carriers, for instance,carriage by truck or carriage by ocean-going vessel. In this distinction, it is simplythe means of transport which is the quali-fying criterion.

If one contract for the unimodal carriageof goods involves more than one trajectory,the expression currently used is throughtransport, which may be performed by thecontracting carrier alone or by sub-con-tracting carriers. The principle is the sameas in multimodal transport, but only onemode of transport is used, for instance, car-riage by ocean-going vessel with tranship-

CONTENTS

I. SOME GENERAL LEGAL ASPECTS

1. Definitions2. Transport integration

3. Definition of freight forwarding4. Caveat: commissionnaire de transport

5. N.V.O.C.C.6. Limited freedom of contract7. Network and uniform system

8. Practical applications

II. THE MODEL RULES OF THEINTERNATIONAL CHAMBER OF

COMMERCE

9. UNCTAD/I.C.C. Rules 199210. Applicability11. Definitions

12. Evidentiary effect of the multimodal transport document

13. Multimodal transport document as document of title under model rules

III. HANDOUTS OF PRESENTATIONSLIDES

I This definition is paraphrased from the one contained in Art. 1, §1 of the United Nations Convention on InternationalMultimodal Transport of Goods, done at Geneva on 24 May 1980 (the Multimodal Convention), which coversinternational multimodal transport. This would appear to be the most authoritative definition at present.

2 Art. 8:40 Civil Code states: “The contract for the combined carriage of goods is the contract for the carriage of goods,through which the carrier (combined carrier) undertakes, in a sole contract with the consignor, to perform thecarriage partly by sea, by inland waters by road, by rail, by air or by any other technique of carriage” (own translation).

ment along the way.If one contract of carriage is performed

by several carriers, which are all contract-ing parties in the main contract, theexpression used is successive carriage.This system is used in the C.M.R., in theC.O.T.I.F.-C.I.M. and in the WarsawConvention.

The definitions proposed here are cer-

O P E N F O R U M


tainly not uniformly used or accepted. Forinstance, multimodal transport is oftendescribed, less precisely, as through trans-port. Also, the distinction between throughcarriage and successive carriage is onewhich in some instances may be too subtleto make. Furthermore, notations such ashouse-to-house are also used in unimodaltransport. Consequently, rather than pro-ceeding on the name which the partieshave given to it, each contract of carriageshould be carefully analyzed in order todetermine its nature.

2. Transport integration. The enor-mous developments of container

transport and of combined or multimodaltransport have changed the face of the lawof carriage of goods considerably. It ismost certainly so that the ever increasinguse of containers has promoted the devel-opment of combined transport to a verylarge extent and this has had a directreflection upon the traditional role of thefreight forwarder. Briefly said, a forwarderwas primarily looked upon as an agentwho acted for a principal in the organisa-tion of a transport operation. The above-mentioned developments have broughtabout the integration of transport opera-tions to a very large extent. With this, thetraditional view of the freight forwarderhas changed as well. In order to clarify theevolution which a forwarder has gonethrough, this integration process in itselfmerits some attention. Provided that thetechnical possibilities are present (whichnowadays is largely the case at least in theindustrialised nations), ideally one personwill be acting as carrier for a complete car-riage from beginning to end and acceptingresponsibility for the goods throughout.This is a relative newcomer on the trans-port scene: the multimodal transport oper-ator (M.T.O.) or combined transport opera-tor (C.T.O.). In many cases, this is a tradi-tional carrier who, as one of the originalparticipants in the chain of transportation,extends his activities to other links in thechain. A frequent example is a sea carrierwho offers house-to-house carriage. Hemay sub-contract the land trajectories or,taking the integration process a step fur-ther, he may develop his own land-carriageactivities, for instance by acquiring anexisting trucking company. This processmay also work the other way round,although this is less frequent because of

the enormously capital-intensive characterof sea carriage. Nevertheless, in the UnitedStates there is at least one widely publi-cized case where a privately owned railcarrier has acquired a shipping line inorder to integrate its transport activities.But, and this is where freight forwardingcomes in, he may be a non-participant inthe original transportation chain, i.e., afreight forwarder who has made the transi-tion to carrier. A third, less important, inte-gration model is where an actual M.T.O. isstill contacted by a freight forwarder act-ing as intermediary. A simple comparisonof the various models is made in theacetate which is attached to this text.

In model A, the freight forwarder orga-nizes the whole transport. He acts as a car-rier and often performs part of the carriagehimself. In an ideal situation, he will alsoaccept full liability for the carriage fromend to end. In other words, he acts as aprincipal, although precisely this point willoften be the cause of serious problemswhich will be treated further on. For thesub-contracting carriers, this situation maybe somewhat disadvantageous from aneconomic point of view, since their directcontacts with relatively numerous cargointerests are replaced by contacts with rel-atively few freight forwarders. These willtry to control the market as much as possi-ble, reducing the actual carriers’ ability tonegotiate with cargo interests.

In model B, the whole transport is orga-nized by one carrier, who has extended hisactivities to other modes of transport. Theadded value that is provided by the freightforwarder in model A, consisting of theorganization of a door-to-door packagewhich is offered to cargo interests, herereverts to the carrier as well.

In model C, the freight forwarder acts asa simple intermediary between cargo inter-ests and one carrier offering integrated ser-vices. There are various reasons for such asituation to develop. For instance, onefreight forwarder may be in charge of thecarriage of the goods of one consignor to alarge number of destinations. For thosedestinations for which integrated transportservices exist, he need not bother organiz-ing the door-to-door carriage himself.Furthermore, the freight forwarder willlocally often have a better marketing posi-tion than the carrier offering integrated ser-vices. He will simply be “easier to reach”:he may have offices in several cities in the

same country and he may advertise morewidely, whereas the carrier’s sale organi-zation is necessarily stretched out morethinly over a much larger area. The freightforwarder will often also be capable ofoffering a more personalized and flexibleservice.

Model D, finally, shows the freight for-warder in his traditional role: he is thearchitect of the carriage operation, but nomore than that. He acts as an agent for thecargo interests and does not himselfassume any carrier liability.

3. Definition of freight forwarding. Afreight forwarder must be clearly

distinguished from the other legal entitiesdescribed above, and furthermore, his rolein the transport network must be clearlydefined. In other words, it must be estab-lished whether in a given set of circum-stances he is acting as principal or agent.This may give rise to considerable difficul-ties in practice.

As was already briefly mentioned above,traditionally a freight forwarder is not acarrier, but an auxiliary person, a profes-sional intermediary between the cargointerests and the carrier, who arranges andorganizes the carriage of goods fromdeparture to destination, but who does notundertake to carry himself and who doesnot accept liability as a carrier. The freightforwarder’s position is often humorouslysummarized in the slogan “we forward allyou like, but we do not carry it”.

Traditionally, therefore, the freight for-warder acts as an agent and contracts onlyto arrange carriage, acting on behalf of thecargo interests. In the common law sys-tems, he is under a duty to exercise rea-sonable skill and care. He must performthe undertaking and to this end, he mustselect qualified personnel, otherwise hewill be guilty of a so-called culpa in eligen-do. He must follow instructions and maynot exceed his authority. This generalstatement is also true in continental law.

In Dutch law, the freight forwarder mayrepresent the cargo interests directly orindirectly. Direct representation meansthat the forwarder acts in the cargo inter-ests’ name and for their account. Indirectrepresentation means that he acts in hisown name, but for the cargo interests’account; the principal remainsundisclosed3. In Belgian and French law,the freight forwarder is generally a com-

3 Art. 8:16 Civil; Code: “The contract to arrange for the carriage of goods is the contract in which the first party (the freight forwarder) undertakes, vis-à-vis the second party (theprincipal), to pass, on the latter’s behalf, one or more contracts with a carrier for the carriage of goods which are to be provided by the second party, or to insert a clause to thelatter’s behalf in one or more such contracts of carriage” (own translation). “Direct” and “indirect” representation are literal translations of the Dutch expressions onmiddellijke andmiddellijke vertegenwoordiging and have as such no meaning in English legal terminology. The same applies to “contracting in his own name” or ”in the principal”s (cargo interests’) name”:in English law, both would simply mean that the agent acts on behalf of the principal, but in the first case, the principal is undisclosed. Cf., generally, UNIKEN VENEMA, C.Æ., Law enequity in het Anglo-Amerikaanse privaatrecht, Zwolle, W.E.J. Tjeenk Willink, 1990, 268-269; on the undisclosed principal doctrine at common low (which does not exist as such incontinental law): REYNOLDS, F.M.B., Bowstead on Agency, in The Common Law Library, vol. 7, London, Sweet & Maxwell, 1985, Art.79.

O P E N F O R U M


missionnaire, meaning someone who con-tracts in his own name but for the accountof his client; again, the principal remainsundisclosed4. He may also contract in thecargo interests’ name, thus disclosing hisprincipal, but this would appear to be fairlyrare. In German law, the freight forwarderis under a legal duty to contract in his ownname but for the cargo interests’ account;in other words, he is not allowed to dis-close his principal5.

The principle, therefore, seems simpleenough. A carrier undertakes to carrygoods. A freight forwarder undertakes toarrange for the carriage of goods. However,uncertainty arises because of two majorreasons.

First, the changing nature of carriage ofgoods, and more precisely the advent ofthe above described intricately organizeddoor-to-door transport networks and multi-modal transport in general, has inducedmany freight forwarders to take on greaterresponsibilities. This was illustrated abovewith the so-called integration model A.

Secondly, some freight forwarders tendto create the impression that they are act-ing as carriers, while they are actually onlyacting in their traditional role of agents.For instance, the freight forwarder maycharge a fixed sum for the carriage, thussuggesting, perhaps unwillingly, that hewill perform the carriage himself, insteadof a percentage on all freight, the amountof which should be disclosed to the con-signor. From a commercial point of viewthis may be desirable in order to impressan inexperienced customer, but it may leadto disastrous results. Furthermore, theactivities that freight forwarding encom-passes are not really clear. Taken in itsnarrow sense, freight forwarding simplymeans the arranging of transport and noth-ing more. Taken in its broad sense, a hostof other activities may be included, such astallying, weighing, packing, warehousing,pick-up and delivery, physical distribution,performing customs formalities, and so on.

The distinction as between carrier andforwarder, so straightforward in theory, isimmensely important in practice. A carrieris mostly subject to mandatory rulesimposing a minimum standard of liabilityin relation to the goods that he carries.Usually, he cannot contract out of thisregime. A freight forwarder is in a morecomfortable position. As the status of afreight forwarder is not regulated by any

international convention and only in a fewdomestic laws, he retains a considerableamount of contractual freedom, whichallows him to use exemption clauses to amuch larger extent than any carrier.Consequently, the basic practical issuewill almost invariably be whether exemp-tion clauses, which are contained in thecontract passed between the cargo inter-ests and the person purporting to be afreight forwarder, will become void or void-able because of this person’s subsequentqualification as a carrier.

4. Caveat: commissionnaire detransport. In continental law, the

matter is complicated even further,because a third, separate entity exists insome legal systems. This is the commis-sionnaire de transport in French andBelgian law, and the transportondernemerin Dutch law. He is situated in betweenthe freight forwarder and the carrier6. Thecommissionnaire de transport is not a car-rier as such, he lets goods be carried. Infact, he is a contractual carrier who sub-contracts the whole carriage to an actualcarrier. Because of this physical inactivity,he is sometimes called a “paper carrier”.The distinction as such is rather meaning-less, unless, as is the case in French law, aseparate legal regime is attached to it.

In Belgium, the commissionnaire detransport - vervoercommissionair stillexists, but he has been made subject tothe same regime as an actual carrier.Consequently, the only remaining impor-tant distinction is that between freight for-warders and carriers. The situation is thesame in The Netherlands, where the quali-fication of transportondernemer has beendeliberately left out of the New Civil Code.In German law, the distinction has neverbeen made.

French law has taken a totally differentdirection. A commissionnaire de transport,a contractual carrier who independentlyorganizes the transit of goods withoutactually carrying them, is subject to a spe-cific and quite complicated legal regime.His responsibilities are much more compa-rable to those of a carrier than those of afreight forwarder. Although a commission-naire de transport retains his contractualfreedom to insert exemption clauses intothe contract of carriage (whereas a carriercannot do so), he is in principle strictlyliable for loss of or damage to the goods.

Furthermore, he is vicariously liable for thefault or neglect committed by servants,agents and independent contractorsemployed by him. Obviously, this status ismuch less attractive than that of a simpleagent, a transitaire (an agent whose activi-ties relate to the transit of goods) or a man-dataire. But the possibilities for a freightforwarder to be recognized as such inFrench law are very remote indeed. Thefreight forwarder must then act underclose instructions from his principal. Hedoes not have any freedom whatsoever inthe organization of the carriage, in thechoice of the mode of carriage and in thechoice of the individual carriers.

In the majority of cases, however, thetypical activity of a freight forwarder willcause him to be qualified as a commission-naire de transport. The criteria which areused to arrive at this qualification areapplied very liberally by the courts, makinga different outcome rather unlikely. A fullreview of these criteria and of the commis-sionnaire de transport’s liability is beyondthe scope of this paper, certainly in view ofthe large body of case law on the subject.

Due to the particular nature of the com-mission de transport, a multimodal trans-port operator (whether he intendeds to actas a carrier or as a freight forwarder) willalmost inevitably be qualified as a commis-sionnaire de transport whenever Frenchlaw is applicable7.

Under certain circumstances, the com-missionnaire may be subject to an actionin tort.

5. N.V.O.C.C. A specific kind of inter-mediary is the so-called non-vessel-

operating common carrier or N.V.O.C.C.Although it is a United States creation, thisexpression is commonly encountered inEurope as well. It should be clearly notedthat it has no real legal meaning outsidethe United States and certainly not on theEuropean continent, where the concept ofcommon carrier as such does not exist.

An N.V.O.C.C. is an intermediarybetween the shipper of the goods and theoperator of the ship that is to carry thesegoods. He fulfils basically the same func-tion as a groupage operator: he combinesthe goods of various shippers into a singleshipment (usually in a sealed container),contracts with an ocean carrier for the car-riage of the goods, and delivers the goodsto the ship. An N.V.O.C.C. is defined by

4 In Belgium, commission-commissie is subject to the Act of 5 May 1872, which replaced the original Title VII, Book I C.Comm. Rights and duties under this contract are regulated in TitleXIII, Book III C.C. concerning mandat-lastgeving. In France, the situation is much more complicated.

5 §407, sec. 1 H.G.B. (old): “Freight forwarder is he, who undertakes, as a professional activity, to procure transport of goods by carriers or by sea carriers, in his own name, for theaccount of another (the consignor)” (own translation)

6 These expressions could be loosely translated as a “carriage contractor”, a meaningless expression in English.7 Cf., for instance: Aix-en-Provence, 27 June 1984, D.M.F., 1985, 622 (summary) (The Johnny Welsch); Rouen, 13 December 1984, B.T., 1985, 286, with note

(The Rhine Maru); Bordeaux, 17 December 1984, D.M.F., 1989, 465, with note; Aix-en-Provence, 11 January 1990, D.M.F., 1990, 618.


O P E N F O R U M

statute as a “common carrier that does notoperate the vessels by which the oceantransportation is provided, and is a shipperin its relationship with an ocean commoncarrier”8. On the other hand, an N.V.O.C.C.is a carrier in his relationship with theshipper of the goods.

Both an N.V.O.C.C. and a freight for-warder who issue separate bills of ladingto cargo interests may incorporate the pro-visions of the Carriage of Goods by Sea Act1936 by means of a suitable paramountclause, and thus be subject to the samerules of liability as a sea carrier.

The N.V.O.C.C. construction does notparticularly help to remedy the confusionbetween freight forwarders and carriers.An N.V.O.C.C. may act as freight for-warder, as agent pure and simple for thecargo interests, so the distinction is notmade any simpler.

6. Limited freedom of contract. Thecurrent situation regarding carrier

liability in combined transport operationspresents a picture of far greater uncertain-ty and confusion than is the case with thevarious forms of unimodal carriage.

The main reason for this confusion isthat at the present time multimodal car-riage presupposes on the carrier’s part avoluntary assumption of responsibility, thewill to “contract in”9. This will to contractin has in the unimodal forms of carriagebeen largely displaced by a framework ofmandatorily applicable rules, which wereusually established, though with varyingdegrees of success, by way of internationalconventions. Some of these have beenalmost universally adopted, such as theoriginal 1924 Hague Rules on carriage ofgoods by sea under a bill of lading and theoriginal 1929 Warsaw Convention on inter-national carriage by air. Other conventionshave only a limited scope of applicationratione loci. In Europe, the prime examplesare the C.M.R., which governs internation-al carriage of goods by road, and theC.O.T.I.F., which governs international car-riage by rail. By way of parenthesis, it is adisturbing tendency in the law of carriageof goods that the unification and harmoni-sation, which was thus realised (albeitonly per mode of transport), is increasinglybreaking down because (sometimes much-needed) changes in the internationalregimes are much less widely adoptedthan the original Conventions. The fore-most example of this fragmentation is theWarsaw System, which has been subjectto numerous changes, each one even less

successful than the previous one.If no international convention is applica-

ble to a certain unimodal carriage, the con-tracting parties will still be bound bywhatever mandatory rules are contained inthe national law which their contract issubject to.

7. Network and uniform system.Multimodal carriage is, as such, at

the present time not subject to any interna-tional convention, until the entry into forceof the Multimodal Convention. On theother hand, it cannot be said that contrac-tual freedom in multimodal carriage is atthe same level as in, for instance, carriageof goods by sea in the 19th century, whenocean carriers seemed to have turned theinventing of large numbers of incrediblyfar-reaching contractual exemption clausesinto their favourite pastime. This is sobecause very often the appropriate rules,which would govern the various modeswhich constitute a particular multimodaltransport were it to be a series of subse-quent unimodal contracts, will also govern,to some extent, the multimodal transportitself. These rules are mostly mandatoryand the carrier performing a multimodaltransport cannot escape their operation.Thus, the carrier is already, by force of law,subject to an embryonal form of pure net-work system. Under such a network sys-tem, the existing legal rules governing uni-modal carriage are combined in such away that wherever loss of or damage tothe goods occurs, it will fall into one of themazes of the net, which will then providean immediately applicable solution that istotally consistent with the one that wouldhave been reached were the transport aunimodal one. The system has also aptlybeen baptised the chameleon system,because the multimodal transport operatorchanges color, as it were, each time themode of transport by which the contract isperformed changes. For instance, in aroad-sea-rail combination, the operator willbe treated as a road carrier during the firstleg of the transport, as a sea carrier duringthe second, and as a rail carrier during thethird, although, technically speaking, hemay be neither of these three, or only oneor two of them.

Nevertheless, if a carrier cannot escapethese mandatory rules, it remains in eachparticular case to be established, first ofall, that the person performing the contractis indeed a carrier and not a freight for-warder. And secondly, if the performingparty is indeed acting as carrier, it still

retains considerable freedom in establish-ing contractual liability rules and exemp-tions for non-localised loss and damage(i.e., loss or damage of which it is notknown during which leg of the transport itoccurred and to which consequently nomandatory regime applies automatically)and for those stages of the multimodaltransport that are not governed by anymandatory regime, such as warehousing,transport over inland waters, and oftenloading, discharging and delivery of thegoods. Therefore, contracts for multimodalcarriage may vary considerably, leavingcargo interests uncertain as to exactlywhat rights and liabilities they are incur-ring. In other words, the network system ismodified and adapted by contractual stipu-lations: hence its name, the modified net-work system. In contrast to this, theMultimodal Convention basically containsa uniform liability system.

8. Practical applications. Several prac-tical applications have been made of

the above-mentioned theoretical solutions.On the one hand, an attempt has beenmade to create a mandatory internationalconvention concerning multimodal trans-port. After extremely elaborate and lengthynegotiations, the 1980 U.N. MultimodalConvention was concluded. It tries to com-bine the advantages of both the uniformand modified network solutions. As thisConvention is still inoperative, there is nocase law to illustrate its working or gaugeits effectiveness and its treatment herewould serve no apparent practical pur-pose.

However, in 1992 a new set of modelRules was drafted by UNCTAD togetherwith the International Chamber ofCommerce, which are based to a largeextent upon the Convention. These Rulesare currently used by FIATA, the interna-tional organization of freight forwarders. In1995, BIMCO - the Baltic and InternationalMaritime Council - responded with theMultidoc 95, which is a more traditionaldocument based upon a modified networkstructure.

Before the coming about of theMultimodal Convention, at an earlier stageone of its drafts was adopted by theInternational Chamber of Commerce as anon-binding set of Rules for drafting a com-bined transport document. These 1973 ICCRules (modified in 1975) are also based onthe modified network system.

8 46 U.S.A. App. §1702(17).9 C.F. DIAMOND, A., “Liability of the Carrier in Multimodal Transport”, in International carriage of goods: some legal problems and possible solutions,

SCHMITTOOFF, C.M. and GOODE, R.M. (ed), in The International Commercial Law Series, vol. 1, s.l., Center for Commercial Law Studies, 1988, 37.


O P E N F O R U M

II. THE MODEL RULES OF THEINTERNATIONAL

CHAMBER OF COMMERCE

9. UNCTAD/I.C.C. Rules 1992. Untilsome time ago, the International

Chamber of Commerce recommended theuse of model Rules, which had been draft-ed in 1973 and slightly modified in 1975, forincorporation into multimodal transportdocuments. These Rules were relativelyrecently replaced with a new set, draftedin close cooperation with UNCTAD andbased upon the Multimodal Convention10.What follows here is only a selectivereview of some marked differencesbetween the old and the new Rules.

10. Applicability. The 1975 Rulesapplied only if a combined trans-

port document as defined in these Ruleswas issued11. The 1975 Rules adopted, inthis respect, the formality requirementwhich was first introduced in the T.C.M.Draft Convention. The Unctad/I.C.C. Rulesdo not contain this formal requirement anymore. Incorporation of the Unctad/I.C.C.Rules into a contract of carriage is basedsolely upon the parties’ will and does notrequire the fulfilment of any formalitieswhatsoever. Thus, incorporation of theRules into the contract may be done inwriting, orally or otherwise12. “Otherwise”may be, for instance, through certainactions or behaviour by one of the partieswhich indicates clearly and unequivocallyits intention of indeed incorporating theRules. Thus, consent may be deduced froma party's conduct.

All this is no more than an application ofthe general rules of the law of contract.

As to how the UNCTAD/I.C.C. Rulesmay be incorporated, Rule 1, §1 clearlystates that simple reference is sufficient.Therefore, a party to the contract cannotescape application of the Rules by invokingthe fact that it did not know the contents ofthe Rules and that consequently it couldnot have accepted them. This seems a use-ful addition to the 1975 Rules as not alllegal systems contain the same require-ments as to knowledge and acceptance ofcontractual terms.

Furthermore, the general idea of Rule 1,litt. c of the 1975 Rules is conserved in thenew Rule 1, §2: the Rules supersede anyadditional terms of the contract which con-flict with them, except to the extent thatthey increase the multimodal transport

operator’s duties or responsibilities. Thereis no express mention any more of the nul-lity of such conflicting stipulations. Thenew Rules simply use the word “super-sede”; no provision is necessary any moreas to the effect of the nullity of one contrac-tual stipulation upon the whole of the con-tract. The language is simpler, and theresult remains exactly the same. The basicidea of Rule 1, §2, of course, is the same asin any other convention on internationalcarriage of goods: a minimum standard ofliability which is mandatory for the carrierbut which may be increased should thecarrier wish to do so.

11. Definitions. The list of definitionscontained in Rule 2 of the 1975

Rules has grown considerably longer inRule 2 of the new UNCTAD/I.C.C. Rules.Rule 2, §1 defines the multimodal transportcontract in the classic manner as a singlecontract for the carriage of goods by atleast two different modes of transport. Inthe explanatory memorandum to the newRules the draftsmen remark, quite correct-ly, that the definition should indeed focuson the multimodal transport contract andnot, as was the case in the 1975 version, onmultimodal (combined) transport as such.Without disregard for the importance ofprecise draftsmanship, this semanticimprovement does not seem to have anypractical consequences.

Rule 2, §2 defines a multimodal transportoperator as any person who concludes amultimodal transport contract andassumes responsibility for the performancethereof as a carrier. This definition differssubstantially from the one given in Rule 2,litt. b of the 1975 Rules. The difference is ofcourse brought about by the abovemen-tioned fact that an operator is no longerrequired to issue a multimodal documentin order for the Rules to apply. The finalphrase (“... and assumes responsiblity forthe performance thereof as a carrier”)seems to indicate that it would be possibleto conclude a multimodal transport con-tract without assuming such liability. Ithas already been submitted above thatthis is impossible - it is a contradiction interms. It is of course possible to conclude acontract in which no multimodal transportoperator liability is undertaken, but thiswould rather go towards a freight forward-ing contract. Therefore the abovemen-tioned phrase is unfortunate. By conclud-ing a multimodal transport contract thecontracting party who will perform the car-

riage is automatically liable as a carrier,and not as a freight forwarder. It was prob-ably inserted only to clarify the extent ofthe notion of multimodal transport opera-tor, but it may give rise to doubt.

In Rule 2, §3, “carrier” is defined as theperson who actually performs or under-takes to perform the carriage, or part there-of, whether he is identical to the multi-modal transport operator or not. This defin-ition is included simply to distinguish anyperforming carrier - not identical to theoperator - from the operator himself, who isthe contracting carrier.

The definitions in Rule 2, §§4 and 5 ofconsignor and consignee are self-explana-tory: “consignor” means the person whoconcludes the multimodal transport con-tract with the multimodal transport opera-tor; “consignee” means the person entitledto receive the goods from the multimodaltransport operator.

The definition of a multimodal transportdocument is substantially shorter in Rule 2,§6 than in Rule 2, litt. c of the 1975 Rules,but it is not fundamentally different. Thedocument may be issued either in nego-tiable or in non-negotiable form. New,however, is the express reference to E.D.I.Rule 2, §§7 and 8 define the taking incharge and delivery of the goods. Theseparagraphs correspond to Rule 2, litt. d ofthe 1975 Rules, which only defined deliv-ery. The definition of taking in charge isagain self-explanatory: it simply meansthat the goods have been handed over toand accepted for carriage by the multi-modal transport operator. The definition ofdelivery has been largely expanded and,above all, clarified in comparison to itscounterpart in the 1975 Rules. Deliverymay now have three distinct meanings.First, it may retain its colloquial signifance;it is then simply the handing over of thegoods to the consignee - one might add, ofcourse, at the agreed destination.Secondly, it may mean the placing of thegoods at the disposal of the consignee inaccordance with the multimodal transportcontract or with the law or usage of theparticular trade applicable at the place ofdelivery. Obviously, this part of the defini-tion refers to clauses in the contract of car-riage by which the parties mutually agreeto consider that delivery takes place at agiven moment, whether or not the con-signee is present. These so-called “deliv-ery clauses” are quite common in bills oflading for carriage by sea. Local custommay also play an important role. Thirdly,

10 For a detailed article-per-article description of the UNCTAD/I.C.C. Rules. cf. GLASS, D., “Muitimodal Transport”, in Contracts for the Carriage ofGoods by Land, Sea and Air, YATES, D. (ed.-in-ch.), London, Lloyd’s of London Press, 1993 (looseleaf ed.), sec. 6.5.2.

11 Rule 1, litt. a.12 Rule 1, §1.

O P E N F O R U M


delivery may mean the handing over of thegoods to an authority or other third party towhom, pursuant to the law or regulationsapplicable at the place of delivery, thegoods must be handed over. This lastphrase refers to ports where direct deliveryto the consignee or his agent is impossiblebecause local law requires the goods to bedelivered either to customs or to a nation-ally controlled stevedoring monopoly(which is a very common situation). All inall, this definition is much more precisethan the one in the 1975 Rules.

The unit of account of the Rules is theS.D.R., as defined in Rule 2, §9. It replacesthe franc of Rule 2, litt. f of the 1975 Rules.

And finally, Rule 2, §10 defines "goods"as any property including live animals aswell as containers, pallets or similar arti-cles of transport or packaging not suppliedby the operator, irrespective of whethersuch property is to be or is carried on orunder deck. This definition is probablyincluded to avoid any confusion with theHague and Hague Visby Rules, which con-

tain special rules as to the abovemen-tioned categories of goods - confusionwhich might possibly arise because of thedecades of practical use of Hague Ruleswording.

12. Evidentiary effect of the multi-modal transport document. As

to the evidentiary effect of the multimodaltransport document, Rule 3 follows thesame line of reasoning as the Hague VisbyRules, which was already present as wellin Rule 9, in fine, of the 1975 Rules. Rule 3states that the information in the docu-ment shall be prima facie evidence of thetaking in charge by the operator of thegoods as described by such information,unless a contrary indication, such as “ship-per’s weight, load and count,” “shipper-packed container” or similar expressions,has been made in the printed text orsuperimposed on the document. The word-ing of the exception seems doubtful, how-ever. It seems to imply that a pre-printedformula such as the above-mentioned

would suffice to take away the document’sevidentiary value. This is hardly desirableand has hitherto never been accepted.

Furthermore, Rule 3 reiterates the ideafirst elaborated in the Visby Amendmentsto the Hague Rules, in stating that proof tothe contrary shall not be admissible whenthe document has been transferred, or theequivalent electronic data interchangemessage has been transmitted to andacknowledged by the consignee who ingood faith has relied and acted thereon.

The basic idea is that of the VisbyAmendments, but whereas Rule 9 of the1975 I.C.C. Rules used exactly the samewording as the Visby Amendments (“[...]when the document is issued in negotiableform and has been transferred to a thirdparty acting in good faith”), the new Rulescontain slightly different language. First,there is no mention of a “negotiable” docu-ment any more - the text only concernsitself with the transfer of the document assuch. This would seem to include the non-negotiable documents as well. Normally

MULTIMODAL TRANSPORT: DEFINITION

Art 1, §1 Multimodal Convention:

“International multimodal transport” means the carriage of goods by atleast two different modes of transport on the basis of a multimodaltransport contract from a place in one country at which the goods aretaken in charge by the multimodal transport operator to a placedesignated for delivery in a different country.

DISTINCTION BETWEEN FREIGHT FORWARDERAND CARRIER

Freightforwarder

“Exploitation”

Cargo interests

Representation

Cargo interests

Carrier1

Carrier2

Carrier =M.T.O.

Carrier1

Carrier2

“Exploitation”

BRIEF SCHEDULE OFCARRIER LIABILITY REGULATION

• Scope of application

• Basic carrier liability rule: strict liability - obligation de résultat

• In exchange: 1. Certain exceptions, sometimes in detailed list. sometimes broadly formulated 2. Financial limit to carrier liability (calculated per kg. or per unit)

• Limitation periods: brief to very brief

INTEGRATION OF THE TRANSPORT NETWORKTRANSPORT CHAIN

NOINTEGRATION

INTEGRATION

MODEL D MODEL A MODEL B MODEL C

Organisation ofnetwork by forwarder,separate contractsfor each trajectory

FREIGHTFORWARDER

Offers organizedtransport network

CARRIER (MOT)

Organisesappropriate network

CARRIER (MOT)

Organisesappropriate network

FREIGHTFORWARDER

Intermediary

FREIGHTFORWARDER

Intermediary

CARGO INTERESTS

NETWORK AND UNIFORM LIABILITY IN THETRANSPORT NETWORK

Carriage of goods from beginning to end

Road leg Warehousing/handling

Exportformalities Sea leg Import

formalitiesWarehousing/

handling Rail leg

Multimodaltpt operator

(M.T.O.)

Cargo interests

Uniform liability system:makes M.T.O. into fully separate

entity, autonomous vis-à-visunderlying trajectories

Network system, chameleon system: M.T.O. liability established accordingto mode of transport on which damage occurred

A B

INTERNATIONAL CONVENTIONS

• Carriage by sea

• Carriage by air

• Carriage by road• Carriage by rail

• Inland waterways• Terminal operators

Hague Rules 1924Hague Visby Rules 1968Hamburg Rules 1978Warsaw System(i.a. 1929, 1955, 1961)C.M.R. 1956 (Europe)C.O.T.I.F. (C.I.M./C.I.V.) 1980(Europe)-O.T.T. 1991 (not in force)

O P E N F O R U M


the idea behind a truly negotiable docu-ment is that it represents the goods and istherefore a document of title which mayconfer upon its holder better rights thanhis predecessor had. A non-negotiabledocument, however, does not representthe goods - it does not act with regard tothe law of the property - and it is thereforenot a document of title.

The Hague Visby Rules concern onlybills of lading, which are documents of titleanyway. But conferring the same protec-tion upon a simple instrument of proofgoes quite a bit further. It amounts to achange of the structure of the contract ofcarriage, since in both legal systems (com-

mon law and continental law) proof to thecontrary is normally admissible.Furthermore, by referring to the “transfer”of such documents, it is unclear whattransfer is meant exactly. If the draftsmenmean the transfer from the consignor tothe consignee, then this is no transfer inthe actual sense of the word as the con-signee is the named party in the docu-ment, who becomes a party to the contractof carriage, but who never has betterrights than his predecessor. If, however,transfer to another party is meant, thenthis would mean recognition of the possi-bility of transfer not of the document, but ofthe whole contract. This technique, though

not impossible, differs considerably in vari-ous legal systems and would best beavoided in the case of a contract of car-riage.

15. Multimodal transport documentas document of title under

model rules. Under the UNCTAD/I.C.C.Rules, as well as under the 1975 I.C.C.Rules, it is perfectly possible to issue anegotiable multimodal transportdocument13. Such a document has many ofthe characteristics of a bill of lading. It pos-sesses the necessary easy transferability:it may be transferred by indorsement anddelivery, if it has been issued to order14,

EXAMPLES OF CONTRACT CLAUSES REGARDINGTHE NATURE OF THE CONTRACT

• “False” multimodal transport documents• Demise clause, identity of carrier clause• Paramount clause

• Clauses regarding proof• Incorporation clauses

carrier is completely or partly freight forwarder

indicates one specific carrier

indicates the legal regime applicableto “contracting in” phasesdisplace burden of proofrefer to other documents

➜

➜

➜

➜

➜

EX LEGE ACTION

CARGOINTERESTS

Possiblyfreight forwarder SEA

CARRIER

VOYAGE ORSLOT CHARTERER

TIME CHARTERER

BAREBOAT ORDEMISE CHARTERER

SHIPOWNER

Contract subject toHague, Hague-Visbyor Hamburg rules

Action ex lege ifstatutory conditions

apply

CIRCULAR INDEMNITY CLAUSE

1Payment of damagesupon cargo interests

action in tort

3Recovery of indemnity becauseof breach of promise not to sue

SERVANT, AGENTOR INDEPENDENT

SUB-CONTRACTOR

CARGOINTERESTS

CARRIER

2Payment ofcontractual

indemnity equal totort damages paid in 1

Carriage contract

Action in tort Sub-co

ntract

REGULATION OF MULTIMODAL TRANSPORT

1. Uniform Rules for a Multimodal Transport Document Model rules based upon network system for voluntary incorporation into multimodal transport contracts, drafted by I.C.C. In use since 1973, changed in 1975.2. U.N. Convention on International Multimodal Transport of Goods, drafted by UNCTAD. Mandatory rules for multimodal transport based upon uniform liability system. Drafted in 1980, not yet in force.3. UNCTAD/I.C.C. Rules for Multimodal Transport Documents Model rules based upon the Multimodal Convention, for voluntary incorporation into multimodal transport contracts, drafted by UNCTAD and I.C.C. in use since 1 January 1992.

FROM BILL OF LADING TO MULTIMODALTRANSPORT DOCUMENT

Evolution from1 sea leg overvarlous sea legsto mixed sea andland legs

Evolution to non-negotiable document

• Port-to-port bill of lading - shipped bill of lading - received for shipment bill of lading

• Through bill of lading - “pure” through bill of lading, reines Durchkonnossement - “collective” through bill of lading, gemeinschaftliches Durchkonnossement - “ false” through bill of lading, unechtes Durchkonnossement

• Multimodal transport document

• Sea waybill• Straight bill lading

TWO DOCUMENTS IN CIRCULATION

CONSIGNOR12 FIATA CT

Bills of Lading

CAILLAUD & CieB/L for 12 containersto shipper’s order

MONDIAL FRETContracting Carrier

(on paper only)

C.M.A.

Contract for carriage of 12 containersfrom France (inland) to lraq (inland)via Marseille and Tartous

Sub-contract forwhole carriage

Sub-contract for carriagefrom Marseille to Basrah

13 Art. 4, §3 UNCTAD/I.C.C. Rules; Rule 2, litt. c 1975 I.C.C. Rules.14 Art. 4, §3, litt. b, UNCTAD/I.C.C. Rules; Rule 3, litt. b, 1975 I.C.C. Rules. Delivery is not mentioned, but is clearly assumed to be necessary in the expression duly endorsed.15 Art. 4, §3, litt. a, UNCTAD/I.C.C. Rules; Rule 3, litt. c, 1975 I.C.C. Rules.16 Art. 4, §3, litt. c, UNCTAD/I.C.C. Rules.17 Art. 4, §3, litt. a-c, UNCTAD/I.C.C. Rules; Rule 3, litt. f, 1975 I.C.C. Rules.18 Rule 3, litt. g, 1975 I.C.C. Rules.19 Art. 4, §3, litt. a-c, UNCTAD/I.C.C. Rules.20 Art. 3 UNCTAD/I.C.C. Rules; Rule 9 1975 l.c.c. Rules.

O P E N F O R U M


and by delivery without indorsement if it ismade out to bearer15. The UNCTAD/I.C.C.Rules even provide for the issue of anamed document with an order clause16.The document legitimates its holder: deliv-ery of the goods may only be demandedfrom the multimodal transport operatoragainst surrender of the document17. The1975 I.C.C. Rules contained an express pro-vision for cases where the document wasissued in a set of more than one original,discharging the multimodal transport oper-ator upon delivery of the goods in goodfaith against one of such originals18. Thisprovision has disappeared in the new ver-sion, but the solution is, it is submitted,still the same, which comes implicitly fromthe fact that the operator is dischargedupon delivery to a person surrendering oneoriginal19. The literal character of the docu-

ment, protecting third party holders20,poses no problem in the continental lawsystems. Whether it can actually overrulethe document’s status as “transferable”and not really “negotiable” at commonlaw, would appear doubtful, but it is sub-mitted that the operator’s undertaking inthe document not to prove against its con-tents may create an estoppel. As the Rulesonly have the force of contract and not oflaw, the mere fact of their incorporationwill not of itself confer upon the multi-modal transport document the characteris-tics of a document of title at common law,but it may be evidence (if sufficiently wide-spread) of a custom having that effect. InGerman law, too, such a document cannotalways be a document of title.

practice, would transform operationalconditions in many hard-pressed ports.

Furtherance of coordi-nation

A further set of provisions, of consid-erable importance to ports, is con-

cerned with consultation. There is a nec-essarily close working relationshipbetween Customs and port management.This can be conducted by Customs, insplendid isolation, and from a position ofunquestioned authority, leaving the portand its customers to make the best of theresulting situation. Alternatively,Customs can bring the port and its sup-porting commercial community into regu-lar consultation with consequent benefitsfor all concerned.

The revised Convention includes, at thevery beginning of the General Annex, arequirement that “The Customs shallinstitute and maintain formal consultativerelationships with the trade to increaseco-operation and facilitate participation inestablishing the most effective methodsof working commensurate with nationalprovisions and international agree-ments”.

This is strengthened with later stipula-tions that “The Customs shall provide forthird parties to participate in their formalconsultations with the trade” and “Theintroduction of information technologyshall be carried out in consultation withother parties directly affected, to thegreatest extent possible”.

It is not unknown for ports to sufferbecause their customers have no easymeans of obtaining full information of rel-evant regulations and procedures. TheConvention requires that “The Customsshall ensure that all relevant informationof general application pertaining toCustoms law is readily available to anyinterested person.” and “At the requestof the interested person, the Customsshall provide, as quickly and as accurate-ly as possible, information relating to thespecific matters raised by the interestedperson and pertaining to Customs law.”

Dialogue with Customs –The Key

ANOTHER hindrance to port efficien-cy can result from frequent differ-

ences of opinion between Customs anddeclarant on the value or classification ofconsignments. Goods can be held up forconsiderable periods, on their waythrough the port, until some satisfactoryunderstanding is reached. One way of

The Kyoto Convention - A New Port-Customs

RelationshipBy John Raven, former IAPH Reporting Officer with WCO

Customs and Ports

PORTS are often as efficient asCustoms will allow them to be.

Simple, transparent and predictableCustoms procedures are the hallmarks ofall leading ports. Complex, unreliable andobscure formalities characterise andhandicap many less successful undertak-ings, particularly in developingeconomies.

The World Customs Organisation hasnow completed its revision of the KyotoConvention, the main international instru-ment regulating Customs procedures andpractices. It may be timely to identify anddescribe some of the benefits which itwill bring to the world port community,once it receives the number of signatoriesrequired to achieve full legal status.

The central improvement of the newConvention is, itself, procedural. In theoriginal Kyoto structure signatories couldlimit their obligations to just one of thirtyor so individual Annexes. The revisedConvention has placed all the mainreforms in a single General Annex, whichall signatories are required to observe infull. In addition the whole tone of obliga-tion has been stiffened. Many clauses inthe original Kyoto text provide that“Customs may”. In the revisedConvention this permissive note has beenreplaced by much more incisive require-

ments that“Customs shall”.

Several provi-sions focus onrapid release ofconsignments, akey contributionto, and require-ment of, efficient

port operations. Ports, in which goodsmove rapidly from ship to consignee, withminimal delay in Customs, are greatlyassisted in attracting and retainingshipowners and traders. They are able tooptimise the use of scarce quay and con-tainer parking space and maximisecapacity to receive and handle vesselsand cargo.

The revised Convention offers practicalsupport to such operational advantagesby specific provisions requiring Customsto apply risk-assessment and automation,limit information requirements for release,defer payment of duties and taxes, usepost entry audit systems in place of con-signment by consignment clearance, sim-plify needs for financial security, processdeclarations prior to the arrival of cargoand accept declarations in electronic for-mat.

This may seem a modest and unexcit-ing list of facilities, but a combination ofall these improvements, put into Customs

O P E N F O R U M


avoiding such problems is for the declar-ant to obtain advance, binding rulings.Not all Customs services are currentlywilling to provide these, but theConvention requires that “The Customsshall issue binding rulings at the requestof the interested person, provided thatthe Customs have all the information theydeem necessary”

The Convention provides frequentopportunities for amendment. AManagement Committee will meet atleast annually and interested trade bod-ies, including the IAPH, will be able toattend and suggest changes, though theywill not, of course, be able to vote onthem alongside the signatories. There aremany points at which the special inter-ests of port management could be reflect-ed in future adjustments.

Some mention could be made of theadvantages of Customs participating inport-sponsored consultative committees,which can often be more flexible in opera-tion and more comprehensive in member-ship and scope than formal committeesrun by Customs themselves.

IAPH could stress the need forCustoms normal working hours to takeaccount of port operational needs, espe-cially where short Customs hours areextended only on payment of expensiveovertime rates, a practice which tends towork its way into port working arrange-ments with serious additional on-costsand, often, a rich crop of labour disputes.

One innovative proposal would be forCustoms to make a reasonable contribu-tion to the costs of what are often verysubstantial inspection facilities on portpremises and the associated use of portequipment to move containerised andother cargo to and from inspection sites.

A fair costing of such services mightoften play a decisive part in persuadingCustoms to abandon undiscriminating“comprehensive” inspection routines infavour of a greatly reduced number ofselective interventions, based on modernrisk-assessment system principles

Finally, much progress could be madetowards easier international trading ifexport and import Customs could co-operate with each other along the line ofthe total transaction, to provide an inte-grated control, based on the single sub-mission of agreed, minimal standarddata.

IT Technology – AnotherKey

MANY ports already co-operate,electronically, to share information

and smooth the path of ships and cargo.

sixty signatories to the existing texts willhave to agree to the new proposals andthen the Convention will go on the mar-ket for acceptance by the remainder ofthe 250 or so members of the WCO andany other interested countries.

The first, essential requirement tolaunch the revised Kyoto Convention, issupport from forty current signatories.The IAPH can obtain regular informationof progress in this direction and report toits members accordingly. Once the legalbasis of the revised instrument is assuredthe second stage has to be a sustainedeffort to secure acceptance world-wide.

The influence and support of IAPHports and their associated business com-munities could do much to persuade gov-ernments of the importance and urgencyof success in these two objectives.

These benefits of such partnershipswould be greatly strengthened andenlarged if Customs were to develop sim-ilar end-to-end co-ordination arrange-ments.

The Convention provides that “TheCustoms shall seek to co-operate withother Customs administrations and seekto conclude mutual administrative assis-tance agreements to enhance Customscontrol”. The IAPH could well use theopportunity of an early KyotoManagement Committee meeting to sug-gest that this should be interpreted aswidely as possible and used as a basis toexplore, test and apply integratedexport/import procedures.

The benefits of the revised Conventionwill not fall automatically into the arms ofthe world port community. Forty of the

T HE increasing involvement of theprivate sector in the develop-ment, financing, implementation

and operation of public services hasbeen further strengthened in the pastdecade. Without a doubt, public-privatepartnerships, in varying forms, aretoday’s key solutions for reconciling prof-itability requirements and the publicinterest.

These systems mainly concern devel-oping and emerging countries or those intransition, where economic and financialconstraints are heavy. But they are alsoincreasingly relevant to countries apply-ing for accession to the European Unionas well as developed countries (cf. stud-ies of the French Planning Office on thedevelopment of networked public ser-vices in France in the European context).This approach centers around the meth-ods of sharing, management and cover-age of risks described in this issue of theLettre. Risks related to construction andoperating costs must be managed anddistributed among public and privatepartners with the help of financial agen-cies. Revenue-related risks which, in the

case of our study onports, depend ontraffic volumes, aresensitive to the par-ticularities of localpolitical contexts,with a direct impacton the costs ofcover. Marked differ-

ences exist between sectors, particularlyas regards the volume and economic fea-sibility of investments, which requireappropriate involvement of the publicauthorities. These differences also con-cern the players, who include localauthorities and users, particularly in thecase of urban services.

But sectors have many points in com-mon, particularly in the institutional andlegal areas, as each allocation of respon-sibility for infrastructure or a public ser-vice requires clear identification of theplayers and consolidation of the relation-ships between them at all levels.

The partners to these contracts will allhave to fulfill the requirements on whichtheir goals depend. This particular situa-tion of a long-term, two-way commit-ment between public and private part-ners must be based on a relationship oftrust and contractual flexibility, whichincludes the means to settle disputesthrough an appropriate regulation mech-anism.

Public-Private mix:Risk management and distribution

Jean SmagghePresident of ISTED(L'INSTTUT DES SCIENCES ET DES TECHNIQUES DE L'EQUIPMENT ET DE L'ENVIRONNEMENT POUR LE D'EVELOPPEMENT)

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company carries out its business on pub-lic lands and it may draw on governmentinvestment, provide a public service andbenefit from a de facto monopoly.Beyond the legal framework, relativelystrong regulation of its activities is there-fore essential. This may cover manyaspects, whether technical (project defi-nition, standards of performance, stan-dards for maintenance of works, eco-nomic (public service obligations, field ofactivity restrictions) or financial (controlof charges, dues or subsidies).

What is the impact of regulation oncost and revenue risks, and how does itdetermine the principles of sharing theserisks?

Risks and constraintsThe delegated management opera-

tions that are being introduced in mostof the emerging countries, all emanatefrom the same intention on the part ofgovernments: to marshal privateresources to finance public infrastruc-ture. They thus mainly center on afinancing technique that will determinethe legal engineering to be implement-ed. Funding has to comply with specificconstraints, particularly constraints inproject structuring.

Projects are mainly financed by donorswho consent to loans being repaid out offuture revenues and guaranteed by theproject assets. The extent of the risk theytake justifies the need to make extremelyprecise, rigorous documentation avail-able, which must be subject to compli-ance with “bankability” criteria inessence, this documentation will includethree groups of contracts covering theconcession, the commercial and thefinancial spheres.

The concession sphere consists of con-tracts governing the relations betweenthe conceding authority and the projectcompany: concession, delegation, supplycommitment...

Where there is no concession contract,it may be necessary to make the infor-mation available through a specific con-tractual arrangement. There are four keyaspects: ensure minimum revenue forthe project company throughout theterm of the concession, address early ter-mination of the contract, implement areliable system for viable operationsthroughout the project life span (accessto land and necessary resources, obtain-ing approvals), ensure clear-cut, carefuldistribution of the force majeure risksinherent in projects.

Contracts governing the relationsbetween the project company and thedevelopers on the one hand, and the pro-ject company and the builders on theother hand belong to the commercialsphere. Relations between the projectcompany and the operators are also cov-ered by such contracts.

The financial sphere comprises thefinancing documentation. As negotia-tions with the conceding authority oftenbegin even before the specific con-straints imposed by lenders have beenidentified, compliance with “bankabili-ty” criteria must be a constant concern.

Emerging countries usually pose aminimum political risk that must betaken into account when structuring thefinancing arrangements. It is possible toinvolve several types of foreign partici-pants able to assume this risk: multilat-eral agencies and insurance companies,export credit agencies. The buildingperiod, which is the period of maximumrisk for donors, must be specifically cov-ered.

All project assets and contracts arecovered by security to the benefit oflenders - a defensive mechanism tomake it easier for lenders to use of rightsof intervention to replace a defaultingproject company. For this reason, it isoften necessary for the concedingauthority to recognize lender's rightsunder concession contracts of directagreements.

(Source: six delegated management contracts forFrench companies abroad: experience feedback -paper by Olivier Dauchez, Cainet Gide LoyretteNouel - One-day discussion conference on 23March 2000 organized by ISTED, the Ministriesof Foreign Affairs (DCT) and Public Works (DAEI)and the French Development Agency)

Further information can be obtained from:ISTED - “Cities” Department20, rue Monsieur75700 Paris 07 SP - FranceTel:33(0) 1 56 58 55 82 Fax33(0)1 44 49 08 25E-mail: [email protected]: http://www.isted.com

IN developing countries, the trend istowards privatization or delegatedmanagement of public services.

This is particularly so in the port sec-tor where calls for bids are multiplying.But as a recent study1 on public-privateport concessions emphasizes, the vari-ous stakeholders have to take heavyrisks.

Over the past few years, there hasbeen a general trend towards introduc-ing private management into ports. Thismainly concerns handling and storagetasks for goods transiting through theport, and the financing and use of infra-structure and equipment for these opera-tions. It is a development that requires acomplex, multi-faceted partnership to beset up between the port authority, whichis often public, and the terminal manage-ment company.

The concept of a port terminal man-agement company covers various reali-ties, which depend on the types of traffichandled and the amount of competitionin this area of activity. This diversitydetermines the extent to which the com-pany’s activities have to be regulated bythe port authority. In fact, regulation hasmajor implications for the company interms of the level of risk to be borne andthe ability to manage such risk.Consequently, the principles of risk-shar-ing between the port authority and thecompany must take into account thisaspect, which is critical. To simplify inthe extreme, the company bears two fun-damental risks: a cost risk, i.e., overrunscompared to initial estimations of projectconstruction or operation costs, and arevenue risk or commercial risk, whichdepends on traffic and charges.

Regulation is essentialThis is nothing out of the ordinary as

any company, whatever its field of activi-ty, has to bear such risk. But the port

Port Concessions: risks to be shared

1) The report “Public-private port partnerships in developing countries: analysis, sharing and manage-ment of risks”, drawn up by Herve Martel, was supervised by the ISTED think tank on ports, set up inJanuary 1999. It brings together French institutional players, autonomous ports, donors, consultants andprivate contractors working in this sector.

Report of ISTED

ISTED, a non-profit organization, is a platform for study and debate, information and action,at the service of its public and private members in the public works, transport, planning andenvironment sectors. It facilitates their international activties, optimizes the use of Frenchknowhow throughout the world and helps to implement international programmes with thirdcountry leaders.

Developing countries


Baltic Sea - Europe’s

New Maritime Highway

B ALTIC Sea trade is developingmore rapidly than Europe as awhole and more than anyone

expected just a few years ago. Withinthe last 5 years, the conveyance ofgoods by ship in the Baltic Sea showsan annual growth of 7% during the last5 years from 280 to 360 million tones.

The figure appears from a surveyamong the 61 BPO member ports,which cover more than 90% of the seatrade in the region.

Liquid bulk shows an annual growthof 8.7%, dry bulk of 3.4% and generalcargo as much as 14% a year.

Only passenger traffic shows a pro-nounced decline, as passenger trafficreduced 1 million passengers from 1998to 1999. This figure is attributable toabolishment of Duty Free Sales July 1,1999. Several ferry connections havestopped or substantially reduced theiractivities.

“The figures are at a minimum, com-pared to the actual sea transport in theregion, but the trend is quite clear,”Chairman of Baltic Ports Organization,Henning Hummelmose, Port ofCopenhagen, stated at the 5th GeneralAssembly in St. Petersburg on May 25,2000, where the figures were present-ed.

“The Baltic Sea region is one of thefastest growing regions in the world atpresent,” Hummelmose said, “In defi-ance of the Asian crisis and the eco-nomic draw back in Russia in 1998which also had its effect on Baltic Seatrade, most ports in the region havebeen reporting growing figures in cargotransshipment and passenger flow andthe growth continues,” he said.

“The integration between theeconomies in Europe becomes strongerand the demand to strengthen the effi-ciency of ports and the logistics of thetransport chain becomes still more evi-dent. The ports must be prepared tomeet this challenge, now that we haveentered the gate to the new millenni-um,” Hummelmose said.

Governor of St. Petersburg, VladimirYakovlev opened the General Assemblyand other prominent speakersexplained the development in Russia

and in the St. Petersburg region.The General Assembly added new

dimensions to the Strategy of the BPO,which was adopted in 1998. The assem-bly approved setting up of a new “ShortSea Shipping Working Group,” whichaims at identifying bottlenecks thathamper the development of short seashipping in the region and to identifybest Short Sea Shipping (SSS) practicesin the Baltic Ports. Not to forget theenvironmental dimension of SSS, BPOshould also focus on the commercialaspects, such as establishing of newliner services and thus increasing cargoflows at BPO ports.

Newly elected board members wereIgor Rusu, General Director of SeaCommercial Port of St. Petersburg; RihoRasmann, Managing Director of the Portof Tallinn; and Christel Wiman,Managing Director of Port of theStockholm.

Elected Deputy Chairmen wereCommercial and Development Director,Krzysztof Urbas, Gdansk and MarketingDirector Peter Weise, Rostock.

Further information: Henning Hummelmose, Chairman of BPOand Managing Director of Port ofCopenhagen or Per Schmidt, SecretaryGeneral, BPO. Tel:+45 3347 9999, e-mail:[email protected].

Figures are collectedamong the 61 BPOmember ports in theBaltic Sea Region.

Key figures 1995-99.1995 1996 1997 1998 1999

Total cargo (mill. tones) 282 296 315 356 359Containers (mill. TEUs) 1,5 1,7 1,9 2,0 2,0Trailers (Mill. units) 1,8 1,9 2,2 2,8 2,7Passengers (mill.) 46,3 46,6 48,1 54,1 53,0New cars(1000 units) 514 550 697 870 928

Development 1995-99.Annual Growth

Liquid bulk 8,7%Dry bulk 3,4%General Cargo 13,7%Total cargo 6,8%

BIMCO Basic Course

An Introduction to ShippingTuesday/Wednesday, October 10-11, 2000Hotel Qlympia, Tallinn, Estonia

B IMCO courses have, for the last13 years, staged a large numberof Traveling Courses. More than

5,000 participants in over 60 countries

can attest that these courses are an effec-tive method of obtaining practical infor-mation on the latest developments inshipping in general, as well as on mattersof local interest.

Our main objective with these courseshas been to assist our members educa-tionally in areas of importance to theshipping industry. We believe we havereached our goal in this respect, mainly

General assembly held in St. Petersburg on May 24-26, 2000

INTERNATIONAL MARITIME INFORMATION


addressing middle management andthose with some experience within theindustry.

There is, however, also a constant flowof new employees with no or little knowl-edge of the shipping industry, its con-tracts, special documents or vocabulary.In most countries, there is no special“shipping education” and trainees haveto pick up their shipping knowledgethrough on-the-job training, often withoutthe benefit of instruction from experi-enced persons. Also seafarers, whetherthey are coming ashore or continuingtheir sea-service are often not familiarwith the background for decisions madeby their shore-based colleagues.

Finally, the trend towards specializa-tion in a narrow field is spreading, result-ing in many shipping experts lacking theoverall view of the shipping industry andunderstanding of other people’s responsi-bilities.

In the light of these facts, BIMCO wish-es to extend its educational efforts to theabove-mentioned groups. “AnIntroduction to Shipping” course inTallinn is the third, following courses inAntwerp and in Istanbul in March andApril, in a series of basic shipping cours-es which we intend to hold in the future,the next being in Alexandria in January2001. We acknowledge with thanks thesupport, assistance and cooperation ren-dered by the Estonian Shipping CompanyLtd. in arranging this course.

We look forward to welcoming as manyparticipants as possible to Tallinn inOctober 2000.

Torben C. StrandManager, Course Division, BIMCO Publications A/S(BIMCO - Baltic and International MaritimeCouncil)

Programme

Tuesday, October 10, 20000800-0900 Registration and coffee0900-0905 Opening remarks0905-0935 An Introduction to BIMCO0935-0940 Questions & Answers0940-1030 Bills of Lading

• The three important functions• Clean bills of lading• Significance of date/place of

issue• Letters of indemnity• Sea waybills and other trans-

port documents• Electronic bills of lading

1030-1040 Questions & Answers1040-1100 Coffee break1100-1230 Case studies1230-1330 Lunch1330-1430 Laytime and demurrage

• Arrived ship incl. Effect of“Reachable upon arrival”clause

• Notice of readiness• Commencement of laytime• Laytime and exceptions to lay-

time• Demurrage and dispatch

1430-1450 Questions & Answers1450-1510 Coffee break1510-1700 Case studies1800-1900 Reception1900-2200 Participants dinner

Wednesday, October 11, 20000900-0940 Insurance

• Basic principles of maritimeinsurance

• Shipowners’ and charterers’liability

• P&I Clubs0940-0950 Questions & Answers0950-1020 An Introduction to maritime

legislation in Estonia• Maritime Safety Act• Port Act• Ship’s Property Act• Ship’s Registration Act

1020-1030 Questions & Answers1030-1050 Coffee break1050-1140 Ethics in shipping1140-1220 The “GENCON” Uniform

General Charter, 1994- an examination of this impor-tant voyage charter party

1220-1230 Questions & Answers1230-1330 Lunch1330-1520 Case studies1520-1540 Coffee break1540-1630 Results of the case studies and

plenary discussions1630-1640 Evaluation1640-1700 Presentation of certificates of

Attendance and closing remarks1700-1800 Closing Reception- sponsored

by Estonian Shipping CompanyLtd.

Course price• US$190 for BIMCO members (US$165

without participants’ dinner)• US$240 for non-members (US$215

without participants’ dinner)

Hotel accommodationThe reservation must be made directly. As

a guide, the price of a standard single roomat Hotel Qlympia is EEK 1,900.

Hotel Qlympia Tel: 372 6 315 315 Fax: +372 6315 325

For registration and further information,please contact:

BIMCO CoursesDivision of BIMCO Publications A/SBagsvaerdvej 161, DK-2880 Bagsvaerd,DenmarkTel: +45 4436 6809 Fax+45 4436 6868E-mail: [email protected]

Tokyo MOU: Port State Control

in the Asia-Pacific Region

REVIEW OF YEAR 1999

O VER the past six years, sinceinception of the Memorandum,port state control in the Asia-

Pacific region has increasingly attractedthe attention and interest of the ship-ping industry and the general public.Over this period there have been anumber of developments and initiativestaken by the Tokyo MOU to enhanceand promote port state control activi-ties, both from a national and a regionalperspective.

In the previous report it was advisedthat the MOU committee had decidedto develop a new ship inspection andinformation system, based on moderncommunication and computer technolo-gy. On the basis of a feasibility studyand the requirements of members, thecommittee selected the Authority of the

Russian Federation to be the hostauthority responsible for the develop-ment and maintenance of the new dataand exchange system. It was furtherdecided that the new system wouldcome into operation on January 1, 2000.

The new information system willensure that member authorities canconnect to the system easily by usingthe Internet and provide a user-friendlyinterface for all system users. Thedevelopment of this new informationsystem will further promote exchangeof port state control information in theregion and provide a better tool forinspection targeting and tracking ofsub-standard ships.

Some ten years ago, IMO adoptedamendments to the SOLAS conventionfor introduction of a Global MaritimeDistress and Safety System(GMDSS).On February 1, 1999, the GMDSSrequirements became mandatory for allships. In order to facilitate and ensureimplementation of GMDSS require-ments, the Tokyo MOU chose GMDSS

INTERNATIONAL MARITIME INFORMATION


compliance as the subject for its secondconcentrated inspection campaign.Guidelines for the inspection by GMDSSand a checklist were developed for thispurpose. The campaign ran fromOctober 1 to December 31, 1999. Duringthe campaign period, a total of 2,707inspections were carried out by mem-ber authorities. Further, a total of 60detentions were warranted to shipswhich were found not compliant withthe GMDSS requirements or its person-nel lack of necessary knowledge tooperate the GMDSS equipment. Thisrepresents an average detention per-centage of 2.2%.

Recognizing the wide disparity in thecultures and state of development of itsmembers, the Asia-Pacific MOUCommittee has, since the beginning,given high priority to the training ofport state control officers in the region.Based on a strategic plan, a five-yeartraining project was developed andimplemented from 1995 to 1999. Duringthis period, nine training courses wereorganized and a total of 216 port statecontrol officers from 14 authorities weregiven basic training. The successfulimplementation of this training projectimproved the knowledge and expertiseof port state control officers and promot-ed port state control activities in theregion in general. In addition to thetraining courses, a number of seminars,expert training missions and port statecontrol officers exchange programmeswere also organized under the TokyoMOU technical co-operation scheme. Allthese activities contributed significantlyto the successful operation of the MOU,helped to facilitate achievement of itsobjectives and improved harmonizationin port State control throughout theregion in the long term.

Following the acceptance of theMemorandum by the Authority ofVietnam, the Tokyo MOU now has sev-enteen member authorities, namely:Australia, Canada, China, Fiji, HongKong (China), Indonesia, Japan,Republic of Korea, Malaysia, NewZealand, Papua New Guinea, thePhilippines, the Russian Federation,Singapore, Thailand, Vanuatu andVietnam.

TOKYO MOU SECRETARIAT

The permanent secretariat (TokyoMOU Secretariat) of the Memorandumof Understanding on port state controlin the Asia-Pacific Region is located inTokyo, Japan. The secretariat may beapproached for further information or

inquiries on the operation of theMemorandum.

Tokyo MOU Secretariat, Tomoecho AnnexBuilding, 3-8-26 Toranomon, Minato-ku,

Tokyo, 105-0001, JapanTel:+81-3-3433-0621Fax:+81-3-3433-0624E-mail: [email protected]

Authority No. of No. of ships No. of No. of No. of Inspection Detentioninspections with deficiencies deficiencies detentions Individual Ships rate (%) percentage (%)

Australia 2,753 1,749 10,681 145 4,630 59.46 5.27Canada 350 219 916 48 1,908 2) 18.34 13.71China 1,510 919 3,905 67 7,091 21.29 4.44Fiji 100 89 155 0 218 45.87 0Hong Kong, China 900 745 5,696 122 5,580 16.13 13.56Indonesia 853 481 2,118 5 5,596 15.24 0.59Japan 3,579 2,302 11,165 354 10,928 32.75 9.89Republic of Korea 1,846 1,113 4,110 91 9,378 19.68 4.93Malaysia 338 121 441 11 5,297 6.38 3.25New Zealand 743 348 1,288 26 1,233 60.26 3.50Papua New Guinea 0 0 0 0 452 0Phillippines 135 132 1,670 20 2,431 5.55 14.88 Russian Federation 428 317 2,185 70 940 2) 45.53 16.36Singapore 1,019 822 3,871 76 11,101 9.18 7.46Thailand 83 51 395 25 3,583 2.32 30.12Vanuatu 14 1 2 0 6 30.43 0Vietnam 270 190 1,538 11 1,090 24.77 4.07Total 14,921 9,599 50,136 1,071 Regional Regional Regional

24,474 approx 61% .7.18%

ANNEX 2PORT STATE INSPECTION STATISTICS

STATISTIC FOR 1999Table 2: PORT STATE INSPECTIONS CARRIED OUT BY AUTHORITIES

1) LMIS data for 1999. (Sum of the number of individual ship visits during the first and second half of the year 1999)2) Number of individual ships for the Pacific ports only.

WCO News:

E-Commerce and Customs

F OR the government services in general, andCustoms administrations in particular, e-commerce presents three challenges:

The technological challenge

The technological challenge is the firstone since it relates to the tool itself. Formany years, Customs information systemshave been developing rapidly towardsopen systems. These systems can thusrespond both to the requirements of allinternational traders and to those of gov-ernments which aim at rationalization andefficiency to cut costs.

EDI, based on the UN/EDIFACTStandard and generally adopted byCustoms administrations, was at the ori-gin of the development of Customs com-puter system interfaces. This data inter-change technology illustrates the raceagainst the clock for Customs administra-tions under the pressure of a demandingenvironment. Global commerce requires

fast, reactive procedures from all thoseinvolved. The WCO is already recom-mending that its members offer Customsclearance on line.

A regulatory challenge

The regulatory challenge was born outof the spread of e-commerce as a meansof conveying goods, technologies and ser-vices, which calls for an evaluation of itspotential impact. The collection of dutiesand taxes and controls on prohibited arti-cles pose a problem in this context.Following the WTO MinisterialDeclaration of Electronic Commerce in1998, at this time no Customs dutiesshould be applied to electronic transmis-sions themselves. The issue of whethertaxation would be applicable needs to beaddressed by policy-makers. However, ithas to be possible to exercise customscontrols on restrictions and prohibitions(protection of intellectual property, thefight against the transmission of pae-dophilia material,). A vast amount of legaland technical works has to be done in

alent containers)per year or 11%of globalthroughput.

L o g i s t e cStevedoringInc. and International TerminalOperating Co. Inc. (a P & O PortsCompany) jointly submitted a proposal.Logistec Stevedoring Inc. is the largestindependent stevedoring and terminaloperating company in Canada and hasoperations in 27 ports in Canada andeastern United States. InternationalOperating Co. Inc. (ITO), which is based

W O R L D P O R T N E W S


consultation with the leading intergovern-mental bodies to define the framework forthe co-operation required between Statesto ensure some control over the Internet.

An economic challenge

The economic and budgetary challengeis the consequence of the first two chal-lenges and the problems they bring. Thiscan be analysed in terms of the repercus-sions on the national and regionaleconomies. Will the map of trade flows bemodified or will a virtual map replace thereal and tangible maps? What will be thebudgetary impact on States? States areworried about the effects of the e-com-merce revolution, and international orga-nization also. The WCO must tackle thisissue to make a contribution to the inter-national community and, through itsexpertise and technical assistance, to itsmembers.

Contact:Dietmar JostFacilitation and Procedures Sub-DirectorateTel: 00 32 (0) 2 209 93 55e-mail: [email protected]

The New Public Website

A revised version for our Internetvisitors has been created. TheSecretariat gives a lot of atten-

tion to the WCO’s websites. Several ongo-ing projects are aimed at improving thesites.

The new presentation of the publicwebsite is one such project. It has beendevised and implemented by theInformation System Branch with impetusfrom the Communications Strategy Group.The public website is being analysed toalter, update, delete or add to its contents(chapters, topics, articles or documents).This is a demanding task. The challengeis to provide relevant and up-to-date infor-mation. The Communications Service andthe Web User Group (one representativeper department) are working to do this.The WCO private website is a workingsite for members only and is essentiallydevoted to preparing meetings. Its gener-al configuration reflects this operationalaim: the site provides Members withworking documents, enrolment forms andmeeting calendars, so as to promote fullparticipation in the WCO’s workinggroups and committees.

Contact:Eamon SheehyInformation System BranchTel: 00 32 (0)2 209 93 47e-mail: [email protected]

Arabian Gulf: • United Arab Emirates • Eastern Saudi Arabia• Kuwait• Iran • Iraq • Bahrain • Qatar• North Oman Arabian Sea:• Southeast Yemen• Djibouti • South Oman Red Sea:• Western Saudi Arabia• Jordan• Southeast Egypt• South Israel• Eritrea• West YemenIndian Subcontinent:• Sri Lanka• India• Pakistan• Bangladesh

Published on June 12, 2000For details please contact:Study Sales DepartmentOcean Shipping Consultants LtdOcean House 60 Guildford StreetChertseySurrey KT16 9BEEnglandTel:01932 560332 (international +44 1932 560332)Fax:01932 567084 (international +44 1932 567084)Email: [email protected] £í555 or Us$970

The Middle East and IndianSubcontinent ContainerportMarket to 2010

C ONTAINERPORT markets in thisregion have seen considerabledemand growth in recent years,

In the Middle East, the prospect of rela-tively high and stable oil prices hasprompted the start-up of many formerlydelayed projects and laid the foundationfor substantial further growth in contain-erport demand, not least from ongoingmajor petrochemical export projects.

In the Indian subcontinent, privatiza-tion and deregulation have prepared theground for the development of a numberof containerport projects, and providethe basis for strong containerportdemand growth. The continuing con-tainerization of general and bulk cargoeswill underpin further growth in thispotentially vast market.

With regional trades focused heavilyon transshipment and feeder services,the development of new hub ports onthe Arabian Sea is set to transform thepattern of vessel deployments.

This study provides an analysis oftrends and forecast demand for the con-tainerport markets in this region, includ-ing the development of transshipmenttraffic. The analysis covers the followingport ranges and national markets;

Port Holding Discussions

with Terminal Operators

I N response to the request for pro-posals issued by the Halifax PortAuthority, terminal operators sub-

mitted proposals to operate the southend container terminal in Halifax. TheHalifax Port Authority will be holdingdiscussions with two of the world'slargest terminal companies.

Hutchison International Port HoldingsLimited (HPH), a subsidiary ofHutchison Whampoa Group, based inHong Kong, is the world's largest inde-pendent port operator with operationsin over 20 ports worldwide, represent-ing 18 million TEUs (twenty-foot equiv-



in New Jersey, operates in 16 ports inthe United States, and its parent com-pany P & O Ports currently operates in60 ports in 18 countries world wide.

These two world class terminal oper-ators submitted proposals which recog-nize the fair commercial value of theHalifax Port Authority’s south end con-tainer terminal.

The Halifax Port Authority will ensureongoing, efficient operations at itsleased terminals for the benefit of itscustomers and all stakeholders in thePort of Halifax.

The economic impact generated bythe Port of Halifax in 1999 equated toover 8000 jobs representing $545 millionin total income.

Good first half for the Port ofMontreal: Traffic up in almostevery sector

W ITH growth in every cargocategory but one, total trafficthrough the Port of Montreal

reached 9.6 million tones during thefirst half of 2000, an increase of 425,000tones or 4.6 per cent, compared to thesame period last year.

The leading North American contain-er port on the North Atlantic market,Montreal handled 4.6 million tones ofcontainerized cargo during the first halfof this year, an increase of more than200,000 tones or 5.2 per cent comparedto the same period of 1999. Based onthis performance, an eighth consecutiverecord-setting year in this sector iswithin sight.

A total of 500,055 TEUs (20-footequivalent units) moved through theport as of June 30, 2000, compared to478,825 during the first six months of1999, an increase of 4.4 per cent.

The highly-competitive servicesoffered throughout the Port of MontrealSystem on the whole, the strength ofthe North American economies, andongoing economic recovery in Europehelped spur container traffic throughthe port during the first half of 2000.

“Another record year in the highly-competitive containerized cargo sectoris on the horizon, and the ingredientsfor this success are fast, reliable andefficient services at highly-competitiveprices and, of course, labour peace,”said Dominic J. Taddeo, President andChief Executive Officer of the MontrealPort Authority.

“Moreover, it is almost certain thatthe port will join the select one-million

TEU club this year,” Taddeo said. Theport missed the milestone by less than7,000 containers in 1999.

“We are doubly proud of our recordperformances in the containerized cargocategory considering that this sector ofactivity provides the most jobs and gen-erates the greatest economic spinoffs,”Taddeo said.

In the non-containerized generalcargo sector traffic reached more than500,000 tones for the first six months of2000, an increase of more than 100,000tones or 32.6 per cent. It was the bestfirst half in this sector of activity in thepast decade. Increased movements ofsteel products, and in particular steelbeams, contributed to the increase.

The stronger economy has led greaterdemand for steel, especially in theMontreal region as well as throughoutQuebec and Ontario.

On the whole, general cargo traffic(containerized and non-containerized)reached 5.1 million tones during thefirst half of 2000, an increase of about300,000 tones or 7.4 per cent. This cate-gory represented more than 53 per centof the port’s total traffic for the first sixmonths.

Dry bulk traffic totaled 2.7 milliontones for the first half of this year, anincrease of about 200,000 tones or 8.4per cent compared to the same periodin 1999.

Within this category, grain traffictotaled close to 900,000 tones, up some150,000 tones or 20 per cent. Grainmovements got off to a strong startwhen the Canadian Wheat Boardbumped up earlier in the year thanusual grain shipments to the port forexport overseas. The storage and exportof corn and soybeans from local marketsearly in the year also help explain theincrease. By the end of 2000, however,grain traffic should compare with the1.8 million tones handled last year.

Other dry bulks reached 1.8 milliontones for the first six months of 2000, upby about 100,000 tones or 3.5 per cent.The Port of Montreal is vitally importantto local industries that depend on rawmaterials for production. Among themajor dry bulk commodities movingthrough the port are raw sugar, fertiliz-ers, coal, iron ore, copper ore, salt andgypsum.

An increase in various liquid bulkscould not make up for a drop in petrole-um products traffic during the first halfof 2000 and, therefore, liquid bulk trafficon the whole decreased by more than100,000 tones or seven per cent to total1.8 million tones.

Various liquid bulks reached 400,000

tones, up some 100,000 tones or 40.6per cent thanks mainly to increasedtonnages of hydrocarbons, liquidasphalt and molasses. Petroleum prod-ucts traffic decreased, however, byabout 250,000 tones or 15.5 per cent tototal 1.4 million tones following last sea-son's mild winter and less demand fromthermal power plants in Quebec andOntario.

“The strength of the North Americaneconomies, ongoing economic recoveryin Europe, and the very strong trafficgrowth registered in various cargo cate-gories at the port during the first sixmonths of 2000 give us reason to bevery optimistic for the year 2000 on thewhole,” Taddeo said.

The Port of Montreal creates some17,600 direct and indirect jobs and gen-erates business revenues of $1.7 billionannually for the Montreal region,Quebec and Canada as a whole.Moreover, a great number of industriesand businesses depend on the Port ofMontreal for their supply of raw materi-als and products of all types or to exportgoods throughout the world.

Port Commission approves a

five-year agreement

T HE Vancouver Port Commissionrecently approved a five-yearagreement with Kinder Morgan

Bulk Terminals, Inc. to operate andmanage the Port of Vancouver’s exportbulk facility at Terminal 2, Berth 7.

(AAPA ADVISORY)

A brand new auto carrier

calls from Kawasaki

A brand new auto carrier calledJuly 8 at the Port ofVancouver, where she dis-

charged 1,243 Subaru automobilesimported from Kawasaki, Japan.

Built this year in Croatia, M/VDresden is approximately 580 feet longand has a deadweight of 12,743 tons.The Liberian-flag vessel is operated byNYK Lines under charter from itsowner, Providence Shipping, Inc.

Vancouver has been handling Subaruautomobiles since December 1992,when it signed a contract with Subaruof America (Advisory, January 11, 1993,pp. 5-6).

After processing in Vancouver byDistribution and Auto Service (DAS),

sits; and full container ships accountingfor 936 transits, or 13% of total oceango-ing transits. Transits distribution by ves-sel type can be seen in the adjoining piechart.

Available cargo information for theOctober-April period of fiscal 2000 showscommercial cargo tonnage slipping by2.7% to 112.4 million long tons as com-pared to the 115.5 million long tonsrecorded during the same period in fiscal1999. Grain shipments, the leadingCanal commodity group, dropped by11.0% to 24.3 million long tons from the27.3 million long tons in the same period

last year. Thedecrease is attribut-able to the highcosts of crude oil pre-vailing during thisperiod whichincreased trans-portation costs, thusaffecting UnitedStates long haulgrain movementsdestined to Asia.

C o n t a i n e r i z e dcargo, the secondmost important

Canal trade continued strong during theseven-month period of the current fiscalyear. This trade rose by 7.4% to 18.1 mil-lion long tons from the 16.9 million longtons registered in the prior year.Container trade accounted for 16.1% oftotal Canal cargo tonnage. The leadingCanal route for containerized cargo isthat linking the U.S. East Coast and Asiawhich accounted for 40.3% or 7.3 million

long tons of the Panama Canalcontainerized flows during thefirst seven months of fiscal2000. Petroleum and petrole-um products, the third mostimportant commodity group inthe Canal trade decreased by5.7% to 15.2 million long tonsduring the period underreview, as compared with 16.1million long tons during thesame period the prior year.The decrease reflects the sup-



the autos are distributed throughout theUnited States.

DAS also processes Subaru modelsrailed or trucked to Vancouver from aplant in Lafayette (Ind.).

(AAPA ADVISORY)

An Increase of 4.6% in

Canal Traffic

A strong movement of Panamaxvessels, accounting for 2,600transits or 35% of total oceango-

ing transit, has characterized the firstseven months of the current fiscal year.This represents an increase of 4.6%, com-pared to nearly 2,500 or 30.7% of totaloceangoing transits recorded during thesame period the previtus year. However,total oceangoing transits declined by 4%to 7,352 or 34.5 daily during this period,as compared with the 7,655 or 36.5 tran-sits per day registered during the sameperiod in fiscal 1999. The performance ofPanamax transits is shown in the follow-ing chart:

Seven vessel types dominated the fre-quency of transits through the waterwayduring the first seven months of fiscalyear 2000. The first four types includedry-bulk carriers, accounting for 1,831transits or 24% of total oceangoing tran-sits; refrigerated vessels, accounting for1,290 transits or 18% of total oceangoingtransits; tankers, accounting for 1,148transits or 16% of total oceangoing tran-

ply shortage suffered by thecrude oil market resultingfrom OPEC’s restriction in pro-duction as a means to preventa decrease in the price ofcrude oil. However, it isexpected that this trade willrecover as a result of theagreement reached in Viennaon March 27 by the OPEC toincrease the supply of crudeby 1.7 million barrels per day.

Long Beach

A record monthly container cargo volume

SHIPPING terminals at the Port of LongBeach broke the monthly record for

total container cargo volume, moving theequivalent of 406,772 20-foot long con-tainers in May, an increase of 3.1 percentover May 1999. The previous best wasSeptember’s 402,710 20-foot equivalentunits (TEUs).

The May total included 315,786 loadedTEUs - the highest-ever loaded containertotal in a single month for any U.S. port.Loaded export containers jumped 11.7percent to 97,770 TEUs. Loaded importcontainers climbed 6 percent to 218,016TEUs.

Gearing up for the peak shipping sea-son, port officials have been meeting withthe railroads to request more manpowerand equipment. Shipping terminals inLong Beach are opening their gateslonger and later. Many of the terminalsand their customers subscribe to anInternet system that allows shippers totrack more than 100,000 cargo containersat one time.

Dr. John E. Kashiwabaraelected as president

THE Long BeachBoard of Harbor

Commissioners hasselected Dr. John E.Kashiwabara as itspresident for the2000-2001 year. Hesucceeds Roy E.Hearrean, whoremains on the board. Carmen O. Perez isthe board’s vice president, John W.Hancock the secretary and John R.Calhoun the assistant secretary.

Kashiwabara, a retired family physicianand former member of the California StateUniversity Board of Trustees, wasappointed to the Harbor Commission in1996.



A record $66.3 million in primeconstruction contracts to minorityand small businesses

T HE Port Authority of New York& New Jersey reports that in1999 it awarded a record $66.3

million in prime construction contractsto minority, women-owned and smallbusinesses.

The 113% hike in construction con-tracts boosted overall contracts award-ed to minority, women-owned andsmall business enterprises by 2.2% com-pared to 1998. In 1999, the PortAuthority awarded $189 million in con-struction, architectural and engineering,and goods and services contracts tominority, women-owned and smallbusinesses, compared to $185 millionthe previous year.

According to Port AuthorityChairman Lewis M. Eisenberg, the 1999contracts “helped support 2,770 jobs inthe region, resulting in $108 million inwages and $292 million in regional eco-nomic activity.”

Last year, the Port Authority let $989million in construction contracts - thehighest level in agency history.

Last year as well, the Port Authorityawarded minority and women-ownedbusinesses:

• $47 million in subcontracts, up 34%from the $35 million awarded in 1998.

• $8.6 million in architectural and engi-neering consultant contracts, anincrease of 32% from the $6.5 millionawarded in 1998.

• $19.4 million in goods and servicescontracts, a decrease of 200% from the$58.2 million awarded in 1998, a resultof large multi-year contracts issued in1998.

• In addition, small businesses wereawarded $46.6 million in contracts in1999 compared to $35.1 million in1998.

To attain its diversity goals, the PortAuthority operates Business OutreachOffices at four locations in the bi-statemetropolitan areas. These offices pro-vide information on contracting oppor-tunities, financial and technical assis-tance, business and labor developmentprograms, seminars, workshops andreferral services. It also works in part-nership with community groups, includ-ing the Jamaica Business ResourceCenter and the Regional Alliance forSmall Contractors.

(AAPA ADVISORY)

Cargo traffic reaches a

record 945,304 metric tons

D URING the fiscal year thatended June 30, cargo traffic atthe Port of Redwood reached a

record 945,304 metric tons, an increaseof 16.1% from the FY 1998-99 total of813,630 tons. Vessel traffic last yearincluded 127 cargo ships and barges aswell as 20 passenger and research ves-sels.

The Port attributes last year’s recordperformance to the Bay Area’s boomingconstruction industry, resulting instrong demand for building materialsshipped through the Port of RedwoodCity. Sand imports, for example,increased 71.7% to 282,339 metric tonsand cement imports by 27% to 211,070tons.

Scrap metal exports also increased,by 14.4% to 219,966 tons. Gypsum,which comes from Mexico, fell from itsnear record 271,443 tons the year beforeto 226,574 tons.

The cement imported by RMC PacificMaterials includes shipments fromChina and is used in high-profile con-struction jobs such as San FranciscoInternational Airport and the recentlycompleted Pac Bell Stadium. The scrapmetal exported by Sims Metal Americaincludes metal recycled annually fromover 100,000 dilapidated and unusablevehicles.

Construction starts on Phase 2 at

Bell Street Pier Cruise Terminal

T HE Port of Seattle has begunconstruction on Phase 2 of its56,000 square-foot Bell Street

Pier Cruise Terminal facility.Phase 1, which was completed in

April, offers travelers the convenienceof concierge service, a comfortablewaiting area, and a mobile gangwaythat raises and lowers itself automati-cally with the tides and connects thevessel with the second floor check-inarea.

Phase 2 will add a 20,000 square-footconcourse, which will be located off theplaza adjacent to a restaurant, the BellHarbor Marina and the OdysseyMaritime Discovery Center. This willgive embarking passengers a choice ofthree entrances to the cruise terminaland allow the embarkation check-inprocess to begin while debarkation isunder way. The project is scheduled forcompletion by February 2001.

Los Angeles

Board Highlights

T HE Los Angeles Board of HarborCommissioners took the followingactions at their June 14 meeting:

• Approved the Port’s application for acoastal development permit to expandand improve the backland area of theTraPac Container Terminal.

• Approved a coastal development permitapplication from Hugo Neu-Proler Co. tobuild water distribution and storm watercollection systems and light pole founda-tions at its scrap metal export facility.

• Awarded a $249,737 contract to PKBConstruction Inc. to strengthen 108 feetof wharf-supported rail for watersidecontainer cranes and demolish a controltower at the Yang Ming Line ContainerTerminal.

• Approved a three-year, $3.6 millionagreement with Daniel, Mann, Johnson& Mendenhall (DMJM) for constructionmanagement services related to Phase Idevelopment of the Pier 400 containerterminal. Services to be provided byDMJM include contract administration,scheduling, estimating and claims analy-sis.

• Approved a $2.8 million contract withABC Rail Systems Inc. for the design andconstruction of the Port of Los AngelesWaterfront Red Car Line which will runalong the San Pedro waterfront on exist-ing railtracks operated by Pacific HarborLine Inc. (PHL) for freight transportation.ABC will coordinate the design, con-struction and operation of the proposedRed Car Line with PHL.

• Approved an order establishing a com-pensation-free period for the U.S.Merchant Marine Veterans of World WarII, S.S. Lane Victory.

Alabama Corridor Transportation Auth.approves a 2000-2001 budget

THE Alameda Corridor TransportationAuthority has approved a 2000-2001

budget that includes projected expendi-tures of $680 million, largely for construc-tion of the 20-mile-long freight trainexpressway.

Expenditures also will go to developinga revenue-collection system, two newmanagement positions, and a programthat will provide jobs and training foryoung people in the Conservation Corps.The total cost of the project wasincreased to $2.46 billion. About $1 billionhas already been spent. The projectbonds will be paid off by tolls collectedfrom railroads that use the corridor.

now on theVSA3 Groupwill be offering a good seventy sailingsto South American ports every year. InAntwerp all the group’s ships are han-dled by P&O Ports in the Delwaide Dock.Both services are represented byCanmar Constship Agencies, Grisar &Velge Newco (for CSAV), Herfurth &Co.(ECL), Neptumar (for Montemar &Hansa Star Line), P&O Nedlloyd(Belgium) and Trimar (DSR-Senator).



Royal Caribbean International recent-ly announced that it will return toSeattle in 2001 with a new ship,Radiance of the Seas, for a series of 16Pacific Northwest sailings. Additionally,Norwegian Cruise Lines’ 2001 schedulecalls for 23 sailings from Seattle to thefjords and glaciers of southeast Alaskaaboard the Norwegian Sky, an increaseof two sailings from this year.

(AAPA ADVISORY)

CIP/OAS Introduces website

I NTER-AMERICAN Committee onPorts, Organization of AmericanSates introduces website and

urges to visit:<http://www.oas.org/cip/>. CIP alsoreports that the Economic Commissionfor Latin America and the Caribbean(ECLAC) will host a meeting of expertson maritime transportation in

September 2000, in Port of Spain,Trinidad & Tobago, to analyze thedeterminants of the high cost of trans-portation. They will discuss and coordi-nate the activities that being developedand will be developed in the future bythe regional governments, port authori-ties and regional organizations, CIP fur-ther reports. For more information,please contact: <[email protected]>. (CIP Newsletter, July 2000)

Antwerp

Increased frequency for Antwerp-Switzerland shuttle

Ayear after the launch of the Brabotrains, the Monday to Friday shut-

tle service between IFB Zomerweg(Antwerp) and Basle, and a seconddirect train between IFB Zomerweg andZurich. Both services offer an A day/Bday timetable. The trains have a capaci-ty of 75 TEU each. Connections to allmain Swiss destinations are available inboth Basle and Zurich.

VSA3 group starts second service to South America

THE VSA3 consortium, which oper-ates ships on the run between

Northern Europe and the SouthAmerican Atlantic coast, has started asecond liner service on the same route.Antwerp is the last but one Europeanport of loading for both services. Themembers of the consortium are ContshipContainerlines, Compania Sudamericanade Vapores (CSAV), EuroatlanticContainer Line (ECL), Hansa Star Line,Montemar and P&O Nedlloyd.Germany's DSR-Senator Line chartersslots on the consortium ships.

The basic service is provided by sixships with a capacity of 2,470 TEU eachwhich offer a sailing every seven to eightdays to Santos, Paranagua, BuenosAires, Montevideo and Itajai. The firsttwo of these ports also appear in thesailing list of the new fortnightly service.Three smaller 1,100 TEU ships offer addi-tional sailings for Rio de Janeiro, RioGrande and Salvador.

This new service means that from

A smart solution from

Kalmar Industries

KALMAR Solutions, the specialistdivision of Kalmar Industriesthat provides handling solutions

designed to improve its customers’ oper-ations and profitability, has recentlystruck a deal with Nord France TerminalInternational - Inter Ferry Boats (NFTI-IFB) in Dunkirk, to fit two Sisu rubbertyred gantry cranes (RTGs) with its ownauto-steering and container verificationsystem, SmartrailTM .

Nowadays, the majority of KalmarRTGs come fully equipped withSmartrailTM. This technology has beenproven to reduce ship turnaround times,boost productivity and heighten theoverall efficiency of ports and terminals.

Phillip Revel, Director of NFTI, com-ments:

“Many of our colleagues had com-mented about the enormous poten-tial to increase efficiency and pro-ductivity by using RTGs withSmartrailTM. Taking this into account,

The productivity gains experienced at Dublin Ferry Terminals convinced Nord France TerminalInternational to have the two RTGs in operation at Dunkirk refitted with SmartrailTM



and having seen the systememployed to great effect at DublinFerry Terminals, we decided to havethe two Sisu RTG’s in operation atNFTI-IFB fitted with the system. Weexpect that our efficiency levels willincrease by approximately 20% oncewe receive the newly refitted RTGsin August 2000.”

Kalmar Industries has a long standingrelationship with NFTI’s parent companyBelgian Railways(NMBS) and has previ-ously supplied it with a number of RTGswith SmartrailTM.

Kalmar’s SmartrailTM system is basedon a Differential Global PositioningSystem (DGPS) which, once the RTGoperator activates the automated steer-ing, steers the crane along a pre-deter-mined path. This enables the exact posi-tion of the RTG to be calculated to within±5cm(2 inches). By automating thesteering, SmartrailTM technology enablesthe driver to travel at maximum speedbetween lifts and to concentrate fully onpicking up or setting down containers.The net result is faster and safer opera-tions. Having eliminated the need for dri-vers to manually type in location para-meters, by having the yard managementsystem linked to the SmartrailTM, theautomatic container verification systemalso speeds up operations as time is notlost looking for errant containers. In realterms, SmartrailTM enables ports and ter-minals to keep their turnaround times,for both vessels and trucks, down to anabsolute minimum.

The Port of Le Havre Attends

the World Fair in Hanover

F RANCE occupies an 8,000 sq.m.pavilion at the world fair inHanover which takes place from

June 1st to October 31st, with thechangeover from the 20th to the 21st cen-tury as the main theme. Visitors are suc-cessively invited to discover diverseachievements both in the field of technol-ogy and culture which marked the historyof the ending century and to project intothe world of tomorrow.

This course includes a sequence whichdeals with the development of transportand cities. What will be the transportmeans? What will the landscape oftomorrow look like? The port of Le Havrehas been selected to illustrate maritimetransport, through a video tape projectednon-stop, next to other recent achieve-ments such as the Ariane rocket, the Fairterminal in Roissy or the stadium of

France.This film was carried out by the RIFF

International Production company whichcame, last spring, to film varioussequences in Le Havre, especially on con-tainer terminals.

Overland Communications

with Le Havre

Road Transport With some 75% of the total traffic in

1999, road haulage easily maintained itsshare of the market for carrying contain-ers to and from the port. Between them,some 300 hauliers make 2,700 trips a daywith container loads.

Within the next few years two newmotorways will be opened, i.e., the A84 inlate 2001, linking Caen, Avaranches andRennes, and then the A29 extension toAmiens and Saint Quentin in 2004.Looking further ahead, the programmeincludes the A28 extension from Rouen toAlencon, Le Mans and Tours and a linkmotorway between the A29 south of theNormandy Bridge and the A28, so as toconnect with the frontier-to-frontier routefrom Calais in the north to Bayonne nearSpain. There are also plans to turn twomajor roads into dual carriageways theRN31 in the north from Rouen to Reimsand the Rouen-Chartres-Orleans highwayin the south.

Rail TransportWith a total traffic of just over 4 million

tones, 1999 was a good year for the rail-way, largely due to petroleum productsand coal, which were enjoying a strongcyclical upturn. However, it is vitallyimportant to intensify rail services to theport of Le Havre and to push ahead withthe developments undertaken over thelast few years.

1 - Le Havre Shuttles S.ASince LHS was founded in 1998 it has

been the up and running provider of masstransport by rail. Its function is to pooldemand so as to make the best possibleuse of the capacity available to for-warders and owners working with thePort of Le Havre.

2 - The development of mass transport byrail

After the Lille shuttle (operational since1995 and with frequency doubled in thesecond half of 1999) and the Lyon shuttle(launched by LHS in 1996 and soon verysuccessful), the Havre port communityconcentrated on Strasbourg in 1998 and1999. A new service has also just beenset up between Le Havre and Milan (run-ning to Novara), marketed by Le HavreShuttles. Since late January there havebeen 5 incoming and 4 outgoing trainsper week. The priority this year, 2000, isto develop existing services and to startup new shuttle services toBasle/Mulhouse and Dijon/Chalon surSaone. What makes them so competitiveis that Le Havre offers such good transittimes, due to its position as the first andlast port of call in North Europe. By usingLe Havre, not only can empty containersbe repositioned, which is a considerableadvantage in terms of logistics, but cargoaccess time is considerably reduced, andat prices fully competitive with those ofAntwerp and Rotterdam.

River TransportAccounting for a total of 2.44MT, river

transport from and to the port of Le Havrerose by 2.4% overall in 1999. Logiseine,the barge service for containers on theRiver Seine, turned in a figure of 21,000TEU for the year, a leap of 31% over 1998.Contributory factors were its 3 returntrips a week and the introduction ofbarges with a capacity of 132 TEU. ACustoms agreement between Logiseineand the Board of Customs, known asFREEDOM, was signed on October 15,1999. Finally, a dedicated river terminal isto be built as part of the first phase of thePort 2000 extension.



Successful Port

Marketing Seminar

WORLD Maritime University andPort of Hamburg have orga-nized their second Port

Marketing Seminar in June this year. Theone week’s program was held in Malmö.Participants were coming from ports in15 different countries. The programproves as a successful combination ofanalytical studies and practical experi-ence. A large share of the program isdevoted to case work. Both partnershave decided to run this subject as anannual event. Detailed information isavailable from the World MaritimeUniversity in Malmö.

Seamless intermodal transportsolutions for the 21st CenturyIntermodal 2000

November 29- December 1, Genoa, Italy

FOR the fist time, the leadingEuropean event for the intern-modal industry is to take place in

Southern Europe. Intermodal 2000 is tobe staged by IIR Exhibitions at the FieraIntermozionale di Genova, November 29-December 1.

Given the location, as Italy’s leadingport and maritime center, it is appropri-ate that the conference program reflectsthe growing importance of theMediterranean as a gateway to Europefor the world’s major trading lanes.Furthermore, with sessions looking atevery aspect of intermodalism the con-ference will be of interest to all thoseworking in the transport industry regard-less of whether their principal field ofinterest is shipping, forwarding andlogistics, road, rail or port operations.

With world trade growing consistentlyfaster than the world economy and man-ufacturing corporations adoptingincreasingly global strategies, the needfor seamless intermodal transport solu-tions to execute supply chain demandshas never been more critical. To add tothe pressure, the emerging e-economy ischanging the rules of the game, drivingthe creation of new business models andsolutions.

In the face of these challenges, theinternational intermodal industry cannotwork in isolation. Transport providershave to move to a more collaborative cul-ture in order to meet the needs of cus-tomers. This is the key theme to be dis-cussed by leading shippers, and trans-port and logistics executives at what willbe the 14th annual Intermodal

Conference and Exhibition.Through a combination of executive

plenary sessions, parallel tracks andpractical workshops, Intermodal 2000will explore the varied facets of inter-modal transport in the 21st century,drawing on the expertise of global ship-pers, ocean carriers, railway operators,ports and terminals, and industry consul-tants.

The plenary session will set the Scenefor the three-day conference; addressingthe factors that will determine the futuredevelopment of intermodalism withinthe context of world trade and globalsupply chain strategies. Thereafter, par-allel tracks will focus on specific issuesfacing the transport and logistics indus-tries.

• Container Logistics and Management:how technology, innovative thinking andknowledge sharing can positively impact thelogistics bottom line;

• Global Logistics and Supply ChainManagement: identifying the forces shap-ing modern supply chain strategies;

• Intermodal Policy & Performance:what should be done to ensure intermodal-ism truly meets the needs of customers;

• e-business: charting the impact of theInternet and IT on the transport and logis-tics industries;

• Intermodal transport and logistics inSouthern Europe: how theMediterranean is growing in importance;

• Reefertrans: developments in the coldsupply chain and the latest in reefer tech-nology;

• Container financing: new methods forfinancing asset procurement; and

• Intermodal Partnerships andInnovations: what can we expect fromintermodalism in the coming years.

Also new to this year’s conferenceprogram is a series of practical work-shops,covering intermodal terminal oper-ations, cargo security and bulk system.Bookable separately, or as part of themain conference package, these ses-sions are expected to be a popularchoice with delegates attendingIntermodal 2000.

As with every year, Intermodal hassecured many of the industry's leadingexecutives to address delegates.Speakers who have confirmed their par-ticipation for this year’s event include:

• Steve Cameron, land operations director,OT Africa Line, UK;

• Lar Christiansen, transport manager,Europe, IKEA, Sweden;

• Derek Donkin, research and technicaldirector, South African Avocado Growers

Association, South Africa;• David B Edmonds, corporate vice presi-

dent, FDX Corporation, WorldwideServices, USA;

• Rene Hellinghausen, president of the boardand managing director, Intercontainer-Interfrigo(ICF), Switzerland;

• Robert Krebs, chief executive officer,Burlington Northern Santa Fe Railway,USA;

• Yves Laufer, delegate general, GETC,France;

• Giovanni Leonid, president, Assologistica,Italy;

• Eugenio Muzio, managing director, CEMAT,Italy;

• Gary Mansell, chairman, European ShippersCouncil; managing director,freightraders.com, UK;

• Brian Moulton, shipping director, Michelin,France;

• Peter Scott, commercial director,bolero.net;

• Nigel Stribley, managing director, UnitasServices, UK;

• Garth Thorne, senior manager,International, Marks & Spencer plc. UK; and

• Alan Waller, partner, management consult-ing services, Price Waterhouse Coopers,UK.

Rachael White, Conference EditorialDirector, comments:

“Intermodalism at the beginning ofthe 21st century is an exciting topic.The growth of e-commerce as amedium for business transactionsmeans that traditional transport andlogistics solutions are fast becomingoutdated. The need to find newseamless transport solutions thatcan work on a global scale has neverbeen so crucial. Intermodal 2000 willprovide the ideal arena in which toexplore all the possible solutions, aswell as network with other leadingindustry professionals.”

Running alongside the conference willbe a fully dedicated exhibition featuringmany of the industry’s key players. Anideal opportunity to network with cus-tomers - both existing and new - theexhibition is set to be one of the keyattractions for visitors at Intermodal2000.

Anyone wishing to register as a dele-gate or exhibitor for Intermodal 2000should contact Michelle Fisk at IIRExhibitions on tel:+44 20 7453 5309, fax: +44 20 7453 5306, or email: [email protected]: www.intermodal-iirx.com

Copies of the Intermodal 2000 pro-gram are available and can be sent out



on request. E-mail requests should besent to [email protected] remember to include your fullpostal address should you want a pro-gram sent directly to you.

Notes to editors:Intermodal 2000 is organized by IIR

Exhibitions(IIRX), UK. IIR Exhibitions’ portfolioincludes the Terminal Operations Conference(TOC) series in Europe and Asia, established in1976 and Global Automotive Logistics.

For further details please contact:David Cheslin or Karen Baxter onTel: +44 20 7480 0600.E-mail: [email protected] address:www.dunelmpr.co.uk

Issued by: Dunelm Public RelationsGun Court 70 Wapping Lane London E1 9RLTel: +44 20 7480 0600Fax: +44 7480 0606

On behalf of:IIR Exhibitions LtdFrancis HouseKing’s Head Yard London SE1 1NATel: +44 20 7453 5309Fax: +44 20 7453 5304

Port as Major

Stimulus to Irish Economy

T HE Port of Cork is pleased toannounce the findings of a reportundertaken by Dr. Richard

Moloney and Dr. William Sjostrom,Department of Economics, NationalUniversity of Ireland, Cork, in conjunctionwith KPMG Consulting into “TheEconomic Value of the Port of Cork to theIrish Economy.” The findings, which con-firm that the Port of Cork is an importantelement of the economic engine ofIreland, are summarized as follows:

The total contribution of all activitiesat the Port of Cork for 1999 arising fromexpenditure on goods and services totalIR£224.05 million and 3,580 full timeequivalent jobs. These results can besubdivided as follows:

• IR£19.38 million in current expendi-ture by the Port of Cork and 330 fulltime equivalent jobs;

• IR£17.31 million in capital expendi-ture by the Port of Cork and 293 fulltime equivalent jobs;

• IR£92.75 million by other companiesoperating through the Port of Cork

and 1436 full time equivalent job;and

• IR£94.61 million in expenditure bytourists arriving on ferries and cruiseliners and crew of the ships visitingCork and 1521 full time equivalentjobs

The direct contributions of all activitiesat the Port of Cork for 1999 include expen-diture on locally produced goods and ser-vices of IR£117.26 million and 886 fulltime equivalent jobs. These results con-sist of:

• IR£10.46 million in current expendi-ture by the Port of Crock Companyand 124 full time equivalent jobs;

• IR£10.60 million in capital expendi-ture by the Port of Cork Company;

• IR£44.86 million by other companiesoperating through the Port of Corkand 762 full time equivalent jobs; and

• IR£51.34 million by tourists arrivingon ferries and cruise liners and crewof the ships visiting Cork.

The Value of Trade and RelatedEmployment through the Port of Cork:

• value of exports is IR£11.7 billionwith 70,400 full time equivalent jobssupported by these exports.

• value of imports is IR £5.9 billion with42,000 full time equivalent jobs linkedto these imports.

The findings of the report are based on:

• an Input-Output Table of Ireland(CSO,1997);

• responses to interviews conductedby the consultants;

• additional data supplied directly bythe Port of Cork Company and othercompanies using the Port;

• the Donnellan and Moloney report(1997) on cruise liner business at thePort of Crock.

The study relates to the activities atthe Port of Cork in 1999 and confirms thatthe Port of Cork plays a significant role inthe regional economy. Ports have alwaysbeen a vital role in the development onthe Irish economy. This is particularlytrue for an island community such asIreland which is highly dependent oninternational trade for its existence.Nearly 100% of trade by volume and 90%by value are transported through Irishports. Because Ireland has no direct landlinks, these figures are significantly high-er than for other European Union coun-tries.

The Port of Cork is the premier port onthe south coast and is unique in that it isone of two Irish ports which handle allfive shipping modes, i.e., lift-on lift-off,roll-on roll-off, dry bulk, liquid bulk andbreak bulk. In addition to offering theshortest ferry crossing to mainlandEurope, the Port of Cork is the only Irishport which offers direct, scheduled lift-onlift-off, roll-on roll-off services to the conti-nent.

For the first five month periodJanuary/May 2000 total traffic at the portamounted to 4.02 million tones, anincrease of 139,000 tones or 4% over thecorresponding period of 1999. Importsincreased by 24,000 tones or 1% to 2.5

From left to right: Dr. Richard Moloney, Sinior Lecturer, U.C.C.; Pat Keean, Chief Executive, Portof Cork; Sean Geary, Marketing Manager, Port of Cork; and Frank Boland, Chairman, Port of Cork



million tones while exports increased by115,000 tones or 8.2% to 1.52 million tons.Container traffic continues to grow fromits record base of 1999. For the five monthperiod containerized traffic increased by3,000 teus (20 ft. equivalent units) or 7%to 48,000 teus. The growth highlights thecontinuing buoyancy in the Irish marketas does the dramatic increase in importsof new vehicles. To the end of May theseimports have increased by 25,000 vehi-cles or 76% to 57,000 vehicles. The porthandles all Irish imports of Ford, Opel andFiat and a significant portion of trafficdestined for motor distributors, importersof Mercedes, Volkswagen, Audi, Skodaand Mazda. For the period oil trafficincreased by 138,000 tones or 6% to 2.44million tones. Other positive features ofthe first five months' trading include thefirst shipments of ore concentrates fromthe Lisheen Mine in County Tipperary, acontinuing increase in imports of timberreflecting the well-being of the construc-tion industry, a small increase in passen-ger throughput at the Ringaskiddy FerryTerminal and a significant increase inexports of steel from the Irish Ispat facili-ty at Haulbowline.

Over the last decade, the Port of Corkspent IR£50 million on capital investmentof which over IR£29 million was con-tributed in the form of EU Structural andCohesion Funds’ Aid.

The Port of Cork itself employs 124workers directly. As well as theseemployees, many other employees areinvolved in operating ships and handlingcargoes. These employees include truckdrivers, crane drivers, railroad employees,dock and warehouse workers, and tug-boat crews.

is currently in preparation together withlandscape architect Ashok Bhalotra toprovide the area around Ruigoord with anatural and cultural function rather than aresidential one.

Groningen Seaports not

privatised

P LANS to transform GroningenSeaports into a PLC with equalshares held by the authorities of

Delfzijl, Eemshaven and the province ofGroningen failed when the city of Delfzijlobjected to a new management structure.The board, which includes three authori-ties, determines the general policy, to befollowed by the joint Managing Directors.To enhance the commercialization of theports, the management structure hasbeen reviewed over the last five years toallow the port management more free-dom to adjust to current market condi-tions. This would be possible in a compa-ny with Delfzijl, Eemsmond andGroningen as its exclusive shareholders.Groningen and Eemsmond were infavour, but Delfzijl was not. As the threebodies have an individual veto in mattersof major interest, this form of privatizationwas blocked. However all three ownersare in favour of allowing more scope tothe port management by extending itspowers.

Close co-operation with

Archangel

G RONINGEN Seaports worksclosely together with the Russianport of Archangel to develop the

freight traffic between Holland andRussia. A growing number of ships, car-rying mainly timber and forestry prod-ucts, arrive from Archangel both inDelfzijl and Eemshaven. Currently,Holland is the major trading partner forthe Archangel region. Vice-GovernorNicolai Issakhov proudly states “Twelvepercent of our total exports go to Holland.In a few years’ time you have overtakenthe British and the Germans.” Throughcontinuing consultation with the regionalauthorities in Archangel, GroningenSeaports aims to widen trade relations.Apart from timber and forestry produce,the region boasts large supplies of fish,natural gas, oil and bauxite. It also pos-sesses the world’s second largest dia-mond reserve and mining began a shortwhile ago in the Smolensk area.

New Harbour for

AmsterdamAfrikahaven officially opened

T O the tune of a hundred-strongchildren’s choir from Rozemarn,Holendrecht and Bijlmerhorst

schools Royal Commissioner for Noord-Holland Jos Kemenade and Amsterdamalderman for the port, Geert Dales jointlydeclared Amsterdam’s new Afrikahavenofficially open on Friday May 26. The newharbour and adjacent site is vital to theeconomic development of the port.Expansion of port activities is again pos-sible after a long period in which therewas no space to realize this.

The opening of Afrikahaven is a mile-stone in the history of the Port ofAmsterdam. The port’s expansion via a

new harbour and 275 hectares worth ofbusiness sites is very important to bothport and national economy. The addedvalue and employment generated byAmsterdam industrial port is substantial.Figures from the National PortCommission for 1999 show theAmsterdam port region is worth NLG8.4billion in added value, employing 37,000people. New opportunities for the estab-lishment of firms will mean an increase inemployment and higher yields.

President & CEO of Amsterdam PortAuthority Godfried van den Heuvelexplains: “Afrikahaven is a fusion of wetand dry infrastructures. The southern(dry) part is almost completely in linewith the expansion of the Schiphol area.The site around the habour basin is vitalfor transport and industry. ‘Regular’industry must have a permanent place inthe Dutch economy alongside IT and theservice industry. Port areas are excellent-ly suited to this. Which is why preserva-tion and stimulation of sea port areas andtheir hinterland are so important in realiz-ing the necessary differentiation in theeconomy. Amsterdam’s economicstrength lies in the convergence of thevarious economic sectors in the sameregion.”

The possibility of expanding the portdates from the sixties. At that time thearea was reserved for the petrochemicalsindustry, which did not get off the grounddue to a general economic crisis andgrowing environmental awareness. Nowthe new port site will be used by trans-shipment companies and the processingindustry, for which the port has beenunable to find a suitable location foryears. The new Afrikahaven representsan extra 275 hectares of port site and3800 meters of quay for Amsterdam. Itmeans that an additional 10 to 15 milliontones of goods can be transshipped andprocessed annually. Employment isexpected to increase substantially, with7000 new jobs.

The harbour itself is 1900 meters long,350 meters wide and 15 meters deep. Itwill be accessible for vessels of 120,000tones (deadweight).

Work will be completed by mid-2001,when the first companies will be wel-come in and around Afrikahaven.Discussions are ongoing between thePort Authority and various private sectorparties interested in an establishment inthe new port area.

The Port Authority maintains close andintensive contacts with the residents ofRuigoord, who are valued partners in con-sultations on ending the residential sta-tus of the village and creating a newblueprint for the heart of Ruigoord. A plan



Port of Riga achieving Freeport

status and ISO 9002 accreditation

I N accordance with its prospectivedevelopment program, the RigaPort Authority has elaborated the

legislative basis of the Riga Freeportand passed it to the Parliament forapproval.

The Riga Freeport Law was endorsedby the Latvian Parliament entering intoforce on April 12, 2000. Until this dateonly the state shareholders company“Riga Commercial Port”, which occu-pies around 30% of the port’s total terri-tory, had the free economic zone status.

Adoption of the Riga Freeport Lawmeans introduction of customs, exciseand value added tax important deduc-tions, therefore significantly reducingexpenses for capital investments in con-struction of new terminal, berths, distri-bution centers, etc.

Finally, we are delighted to communi-cate that in April 2000 Bureau VeritasQuality International has awarded theCertificate of Approval to the Riga PortAuthority. This is to certify that ourquality management system has beenfound to be in accordance with therequirements of the Quality StandardISO 9002:1994

Rotterdam News

MSR assists Port of Constantzawith the implementation of theirVTMIS

J UNE 28, a Memorandum ofUnderstanding was signed betweenthe Maritime Port

Administration Constantza (APC), repre-sented by the Chairman of the Board,Capt. Laurentiu Mironescu andMarineSafety int. Rotterdam b.v. (MSR),represented by their General Manager,Henk Regelink. Both companies willjointly set up the CTS education andtraining, prepare the courseware anddeliver the courses for personnel man-ning the future VTS of the Port ofConstantza based upon and in compli-

Construction on P&O North

Sea Ferries Terminal

R OTTERDAM Municipal PortManagement is having a newpier/ramp built for P&O North

Sea Ferries (P&O NSF) in theBeneluxhaven in Rotterdam Europort.The new pier will replace one of the cur-rent ones, the Zuidsteiger. This is neces-sary for handling the extremely largecruise ferries which P&O NSF will beputting into service in 2001. The invest-ment amounts to over 13 million Euros.Work will start in August and will becompleted in February 2001.

Efficiency

The new cruise ferries, with a lengthof 215 meters and a width of 31 meters,are the largest ferries in the world. Theyhave a capacity of 1360 passengers and400 units of freight. The wharf andaccompanying installations will not onlybe larger, but will also make it possibleto handle passengers and freight flowsseparately, resulting in greater efficien-cy. In addition, the terminal area and thepassenger terminal will be modified. Thetwo new cruise ferries will replace fourother ships which are currently operat-ing on the route Rotterdam-Hull. P&ONSF runs a fleet of seventeen ships,transporting passengers betweenRotterdam and Zeebrugge on one sideand Hull on the other. In addition, freightroutes are maintained betweenRotterdam and Zeebrugge on the conti-nent and Hull, Thamesport andFelixstowe in the United Kingdom.

More rail transport

In 1999, P&O NSF handled 1,028,000passengers, 225,000 private cars and644,000 units of freight (trailers and con-tainers). On the continent, the mostimportant countries of origin/destinationfor freight via the Rotterdam services arethe Netherlands, Germany andScandinavia. Central Europe is on therise. Rail plays an important role here.

P&O NSF is striving towards an increasein rail transport’s share for short dis-tances too. Alongside the already exist-ing train shuttle to Born, in collaborationwith Shortlines, a shuttle service hasalso been started to Cologne this year, incollaboration with Transfracht. Thanksto the new wharf, a more rapid and reli-able connection to the shuttles can beguaranteed, even if incoming and outgo-ing trade were to increase.

Sony:Inland Shipping

S ONY Logistics Europe is concen-trating its distribution for WesternEurope in Tilburg, in the south of

the Netherlands. At present Sony oper-ates several distribution centersthroughout the country. The other threeEuropean distribution centers (EDCs)will be in Prague, Helsinki andBarcelona. The center in Tilburg will be80,000 m2 large. Almost all the goods (95-98%), from Japan and other countries inthe Far East, come in by sea. Sony aimsat transporting 10,000 containers peryear by barge from Rotterdam to BargeTerminal Tilburg (BTT). This policy ismotivated by referring to “a stable sup-ply and environmental advantages”. BTTwill be used as a warehouse and con-tainers are transported to the EDC ondemand.

Ports of Immingham and Goteborg

sign Twinning Agreement

T HE British Port of Immingham andthe Swedish Port of Goteborghave signed a twinning agree-

ment. The two ports will promote and co-operate with each other for their mutualbenefit.

The two ports have had liner shippingconnections for decades and today thereare daily sailings between the two ports.

The Swedish Port of Goteborg and theAssociated British Port of Grimsby andImmingham are the leading ports in theirrespective countries: Goteborg with anannual cargo turnover of 31 million tonesand Grimsby/Immingham with 46 milliontones.

The twinning agreement was signedby Dennis Dunn, Port Director,Associated British Ports Grimsby andImmingham, and Gunnar Nygren,President, Port of Goteborg AB.

Signed at RoRoThe signing of the agreement proper

J

ance with international standards. MSRwill furthermore assist APC in the orga-nizational, operational and managerialset-up of the VTS.

The Vessel Traffic Management andInformation Services (VTMIS) in the Portof Constantza will be delivered byLockheed Martin and is expected to beoperational by the end of November thisyear.

Innovative waste management

company to provide ship-side service

O NE of Australia’s liquid wastemanagement companies,Transpacific Industries, will

establish new facilities at Brisbane's port,introducing a range of services critical tothe more efficient handling of shipboard

l i q u i dtanktainersand roadtankers, the man-agement and storage of liquid waste, andrecycling of oils and other lubricants.



took place in very appropriate surround-ings: at the RORO 2000 exhibition andconference held in Goteborg in May. Rollon/roll off shipping has been, and still is,the principal common denominator of thetwo ports.

The agreement will focus on areas suchas marketing, logistics, cargo handling,staff training and engineering services. Asteering committee with three represen-tatives from each port will meet annually,with chairmanship alternating betweenthe ports.

Twinning comments“The Ports of Grimsby and Immingham

are proud of their long association withthe Port of Goteborg AB. The twinning ofthe ports not only recognizes the closelinks that have been forged to date, butalso demonstrates our combined commit-ment to ensuring that these are built onin the future to the mutual benefit of theports and their respective communities,”said Dennis Dunn.

Gunnar Nygren commented: “Twinning of the Ports of Grimsby and

Immingham with the Port of Goteborg ABis more than an expression of goodwill. Itis a framework to proactively identifyaspects of our business where we canpromote co-operation in the developmentof our ports.”

Mr. Dunn also took the opportunity toannounce, in conjunction with a meetingof the Humber Chapter of the BritishSwedish Chamber of Commerce, ABP’sintention to offer a scholarship to a stu-dent or young adult to be selected by thePort of Goteborg AB.

PLA News: Busy Schedule

Ahead for New River Body

A busy future has been forecast forthe new River Association ofFreight and Transport (RAFT)

which held its first annual general meet-ing at the Little Ship Club at the end oflast month.

The organization has been formed by abroad spectrum of companies operatingon the River and covering lighterage,wharfingers, passenger vessels and civilengineering.

President David Allen, vice presidentPaul Ludwig, treasurer Kim Milnes andsecretary/general manager Barry Janeswere all confirmed in their official posi-tions.

In his presidential address, Mr. Allensaid: “With a more diverse membershipthe association can provide greater sup-port for its members. Especially the small-er companies in relation to health andsafety at work, training and its traditionalrole of representation.”

He pointed out that the recent report ofLord Justice Clarke on river safety hadprompted action from the PLA to acceler-ate its full risk assessment of navigationalstandards on the Thames and the reviewof the watermen and lightermen bye-lawsall of which affected members.

The introduction of NVQs for apprenticewatermen would also involve practical‘on-board’ assessment on craft beingworked. Which was a major change inlicence administration.

Mr. Allen went on: New certificates fortug captains and watermen pilots willalso be introduced.

“All these changes will require muchconsultation with PLA and the MCAwhich will be conducted through thestrength of the RAFT organization.

“Committees have been formed tocover a number of members’ activitiessuch as passenger vessels, health and

safety in conjunction with the Transportand General Workers’ Union wharves andlighterage committee together with acommittee which is planned for piers andpilotage.

The RAFT organization is seen as anessential platform from which to furtherthe development of the various Thames-based companies and they can nowapproach other authorities with one voice.

Tilbury Police Move to

New Headquarters

THE Port of Tilbury Police hasmoved to a new headquarters bythe main gate in line with the

police restructuring program.The police will be working closely

with the security personnel on the gate.Inspector Roger Elliot is in overall

charge of all police and security officers.He carries on the tradition of the port

police as he is the third generation in hisfamily to have served in the force. Hisgrandfather served in the Royals and hisfather was a detective sergeant, knownto all dockers as 'Baby Face’.

The port police is still concentratingon the detection and prevention of crimeand recently discovered a large consign-ment of several thousand Ecstasy tabletsin an empty cabin aboard the MVPallister Bay at 9 berth. The tablets werethen handed over to Customs.

To increase the amount of high-techequipment at police disposal, extra closecircuit TV cameras have been installedand a number of new patrol vehicles pur-chased.

With speeding getting to dangerouslevels on the perimeter road, the portauthority has installed a number of traf-fic calming bumps while the police nowhave an advanced laser gun for thedetection of speeding vehicles.

The twinning agreement between the Port ofImmingham and the Port of Goteborg wassigned by Port of Goteorg President GunnarNygren (left) and Port Director, AssociatedBritish Ports of Grimsby and Immingham,Dennis Dunn. The agreement covers co-opera-tion within marketing, logistics, cargo han-dling, staff training and engineering services.



A new grain facility

begins operations

FIVE years after construction began,a brand new grain transfer facilitybegan operations at the end of June

at the Chinese port of Dalian, reports theChinaonline internet news service(www.chinaonline.com).

Built at a cost of US$335.7 million, theBeiliang grain terminal can load andunload up to 11.1 million metric tons ofgrain a year, and has storage capacity forone million tons.

Supported by such features as automat-ic controls, measurement, checking anddust elimination, loading speed is said tobe “60 times faster than traditional meth-ods.”

(AAPA ADVISORY)

Dramatic Changes to the Port

Environment in Kaohsiung

40 Years AgoAround the peripheral areas of the har-

bor, agricultural land and fish farms werethe most common forms of land use; therest of the area was undeveloped swamp.Children could swim and catch fish in theclean water. Aquatic plants (especiallymangroves) could also be seen every-where

TodayFactories have replaced agricultural

land and swamp as the major feature ofthe surrounding land, together with theinevitable heavy traffic. Both elements cre-ate air and water pollution to the environ-ment. People can no longer swim or gofishing in the port area. Plants that werecommonly seen 40 years ago no longergrow within the harbor area, with somesmall exceptions.

The new facilities, to be developed byTranspacific in two stages over four yearsat a cost of around $14 million, will belocated on a 4.2 hectare site at FishermanIslands.

Work on stage one will commence laterthis year, with the facility expected to beoperational by April 2001.

This stage will encompass the develop-ment of a 23,000 litre isotanker cleaningfacility, a standalone clearing station forthe washing of heavy machinery beingimported into Australia, and a facility forthe decanting of heavy lubricants fromisotankers and repackaging.

Chairman and Managing Director ofTranspacific, Mr. Terry Peabody, said thenew facility would bring to the port clean-ing and waste management services cur-rently located away from wharves.

“Ship and road isotankers are used tocarry a range of liquids and each must bethoroughly cleaned prior to reuse. In somecircumstances these isotankers are cur-rently transported to Sydney andMelbourne for cleaning.

“By providing the service at the point ofproduct offloading, carriers have theopportunity to ‘back-load,’ making theirown operations more efficient and moreprofitable,“ Mr. Peabody said

He said the wharfside facility wouldenable the port to provide an integratedservice to both exporters and importers,increasing the overall attraction ofBrisbane as an efficient and streamlinedport facility.

Commenting on the cleaning station forheavy equipment coming into Australia,Mr. Peabody said the facility would bequarantine approved, with cleaning beingundertaken in controlled conditions toensure disposal of any residual dirt from aforeign port.

“As part of our integrated service, wewill also provide waste management ser-vices for ships, removing bilge waste andother liquids that accumulate during seavoyage. To date, we have provided thisservice using road tankers; however, thiswill now be a wharfside operation.”

Chief Executive Officer of the Port ofBrisbane Corporation, Mr. GrahamMulligan, said the facilities were a signifi-cant, environmentally sensitive additionto Fisherman Islands’ infrastructure ser-vicing the shipping industry.

“The efficiencies that will derive from a“one-stop-shop” service at the port willbe of significant benefit to stevedoringcompanies, importers and exporters, andgeneral carriers, “Mr. Mulligan said.”

He said stage two of the TranspacificIndustries facilities would involve the con-struction of an oil and lubricant re-refin-ery, the first of its kind in Queensland.

“When this facility is operational inaround 2004, Transpacific will be able tore-refine waste oil products back intodiesel and base lubricating oil, refining upto 30 million litres each year.”

Mr. Mulligan said Transpacific activelypursued a policy of resource recovery, re-use and recycling ahead of disposal and,as a result, would make a significant con-tribution to the development of Brisbaneas Australia’s “Green port.”

On completion, Transpacific Industries'Fisherman Island facility will employapproximately 30 people.

Sydney Achieves Magic

Million

A FTER a year of spectacular tradegrowth, the ports of Sydneyhave reached the milestone of

one million TEU for the financial year end-ing June 30.

Containerized trade during the yeargrew by 15% to 1,013,000TEU.

The Chief Executive of Sydney Ports,Greg Martin, said this achievement capsa string of successfully years in Sydneythat have seen remarkable growth in con-tainerized cargo movements.

Buoyed by a strong NSW economy,containerized trade has increased byalmost 50% in the past four years and infact has doubled since 1992.

Mr. Martin congratulated all SydneyPort’s customers for their work in achiev-ing this milestone - the stevedores, ship-ping lines, agents, transport companies,port service providers, container parks,importers and exporters.

The increase has been facilitated byincreased productivity on the wharves aswell as additions to rail freight infrastruc-ture at Botany to improve shunting opera-tions, new and better e-commerce sys-tems; and the introduction of fixed andcoordinated time slots for road and railservices.

“The latest government report now hasSydney and Melbourne as the two mostproductive ports in the country in termsof the very important Net Ship Rate,which determines how quickly ships areturned around in port.

“All these innovations have improvedthe capacity of the ports to cope with thegrowing levels of throughput, eventhough in 1992 a major study predictedthe 1 million TEU mark would not beachieved until 2010.

Mr. Martin also said that, with thegrowth in containers through Sydney

conservatively estimated to reach 2.6 mil-lion TEU by 2025, Sydney Ports are look-ing closely at plans to handle this volume.

“We are very conscious of the need toensure the medium to long term planningof port facilities is in place so the project-ed volume increases can be accommodat-ed.”

The value of containerized trade han-dled through the seaports of Sydney in1999/2000 exceeded $40 billion and repre-sented over 20% of the total value ofAustralia's international trade.

performing well by setting new recordsand scaling new heights. It has fordecades played a stellar role in theexport of iron ore, handling almost 50%of the total iron ore exported from India.The port annually handles about 18 to20 million tons of traffic. The highest



Control and Treatment of BerthOperation Pollution 1. Enforce the disposal of ordinary and

stevedoring waste to reduce the volumeof pollution.

2. Urge the operators to adopt low-pollut-ing and highly efficient logistics andstevedoring operations.

3. Impose control over air pollutants andwaste water discharge of chemical stor-age tanks.

4. Conduct environment evaluation to pre-vent and reduce pollution resulting fromnewly developed business. Monitorenvironmental quality by building basicenvironmental elements for the purposeof prevention.

5. Join the Kaohsiung City EmergencySystem for Chemical Toxicant Disasterto strengthen the ability to handlechemical emergencies in the harbor.

6. Replenish facilities for environmentalprotection and practice emergency drillsto strengthen the ability to deal withany emergency caused by oil contami-nation.

7. The disposal of ordinary industrialwastes left by dock stevedoring opera-tions in the Chung-Dao warehouse siteis currently contracted to the licenseddisposal operator at the shipping com-panies' expense.

8. Ordinary rubbish disposal in the Chung-Dao warehouse site and the cleaningand maintenance work near the inter-

Mormugao Port Trust gets

ISO 9002 certification

M ORMUGAO Port is one of thetwelve major ports of India.An all weather port,

Mormugao Port has been consistently

Working Plan for Port Pollution ControlThe plan of the Kaohsiung Harbor

Bureau for pollution control is as follows:

Control and Reduction of Pollutants fromFixed Sources1. Urge the City Government to control the

amount of pollutants discharged frommajor pollution sources.

2. Call environmental operations meetingsto urge both Kaohsiung county and citygovernments to accelerate the intercep-tion and treatment of sewer water fromChien Cheng River.

3. Urge the fishery administrative units toestablish waste water treatment facili-ties to prevent pollution from fish pro-cessing.

4. Negotiate with the city governments toenforce the construction of pollutantinterception stockades.

5. Set up pollution stockades to interceptpollutants in #5 Basin.

6. Complete the construction of waste-water interception and sewerage at theChien Cheng River under the joint effortof Kaohsiung country and city govern-ments. The construction should be com-pleted by June 2001. Results of all theefforts will then be seen.

Control and Removal of Pollutants fromOther Sources1. Control over the waste oil and water

discharge from all types of ships mooredat the port.

2. Coordinate military units in the harborand fishery associations to enforce thecontrol over pollutants discharged fromtheir ships and fishing boats.

3. In addition to the enforcement of pollu-tion control, the EnvironmentalProtection Dept. of the Bureau will con-tinue to dispatch dump boats every dayto collect rubbish disposed by the shipsmoored at the port and dredge up junkin the harbor area.

4. Rubbish disposal in the harbor area hasbeen contracted to private disposaloperators.

5. To completely resolve the pollutionproblem the Bureau has taken the initia-tive to handle ship waste treatment bybuilding an incinerator. After the projectis finished in 2001, it is expected to elim-inate mobile pollution sources and ele-vate the water quality of the harbor.

6. Currently, the handling of ship waste iscontracted by shipping companies oragencies to disposal operators in confor-mity with the Waste Disposal Rules. TheBureau will take measures such asinspection, suppression, and lead seal-ing to prevent ship waste being dis-charged into the harbor.

change at Chung-Hsin end will be con-tracted to private operators.

To sum up, the Kaohsiung HarborBureau has been working diligently on theport's pollution prevention programapproved by the Executive Yuan. TheBureau has also been publicizing its envi-ronmental protection policy through themedia and meetings.

The Port Kaohsiung Pollution ControlCommittee

The Port of Kaohsiung's PollutionControl Committee consists of representa-tives from units concerned from theExecutive Yuan, Ministry of Transportationand Communications, Kaohsiung city andcounty governments. Since its establish-ment on February 24, 1996, three meetingshave been held to build up consensusregarding verification of pollution sources,confirmation of items to be worked onimplementation of the improvement plan,as well as division and consolidation ofduties for different units. It is to be hopedthat the problem of port pollution can soonbe resolved through these joint efforts.

ConclusionIt is imperative that port administrators

keep the priority of environmental protec-tion uppermost in their minds. Pollutioncontrol should be an urgent and ongoingobjective.

Dr. Jose Paul Chairman MPT, seen receiving the prestigious ISO 9002 Certificate from ShriRajinath Singh Hon’ble Union Surface Transport Minister and H.E. Shri Mohamed Fazal Governorof Goa.

Loading of iron ore to a ship berthed atmechanical ore handling plant



traffic being handled by the Port was21.82 million tons in the year 1997-98.During the year 1999-2000, it handled atotal traffic of 18.23 million tons andalso set high standards in various effi-ciency parameters whether it be aver-age ship berth-day output, turn-roundtime or pre-berthing waiting time.

Now, Mormugao Port has becomeone among the few ports in the worldand the first Indian port to receive theprestigious ISO 9002 certification on acomprehensive basis from IndianRegister of Quality Systems (IRQS)accredited by RCV Netherlands for pro-viding sea port facilities and the relatedsupport services for sea borne trade.

The ISO 9002 certificate was receivedby Dr. Jose Paul, Chairman, MormugaoPort Trust at the hands of the Hon.Union Minister for Surface TransportS/Shri Rajnath Singh in the presence ofShri Mohamud Fazal, His excellency theGovernor of Goa on 28th April 2000.

Attaining ISO 9002 certification is yetanother milestone in the port’s continu-ing efforts and commitment towardsmaintaining a high standard of perfor-mance which shall translate into reli-able and top rate services throughexcellent infrastructure and scientificstreamlining of operation, to its clien-tele in particular and the maritime com-munity at large.

Aiming to become a hub

port in Asia

Strengthening of its foreign trade

container terminal functions

T AKING advantage of successful-ly hosting the Finance Ministers’Meeting at the Kyushu-Okinawa

Summit in Fukuoka this July, the Portof Hakata (administrated by the Portand Harbour Bureau of the city ofFukuoka) has actively implementedmeasures in both software and hard-ware, along with port promotion activi-ties, in order to deal with an increase in

the volume of foreign trade containers.These measures have been carried outin cooperation with national/local gov-ernments and private companies underthe policy of creating a user-friendlyport, and the port is aiming to become ahub port in Asia.

The port has implemented variousmeasures ahead of other ports, such asa year-round 24-hour loading/unloadingservice (October 1997), keeping termi-nal gates open during lunch time (July1998), a 30% discount on port entry feesfor foreign-trade liner services (April1999) and a discount on the user fee forgantry cranes for transshipment car-goes (1,200 yen discount per container.April 1999).

In addition to these measures, the fol-lowing new measure will be intro-duced:

1. Extension of terminal gate hours ona temporary basis:- During the summer time (July-

September), the terminal gatehours will be extended by onehour.

- Open hours:08:30-17:00, Monday-Saturday (normally 08:30-16:00Mon-Sat).

- Implemented on July 1, 2000.2 Expansion of Hakozaki Container

Terminal- Hakozaki Container Terminal

(approx.5.6 hectares) and its neigh-bouring open-air storage area(approx. 2 hectares) will be consoli-dated for the purpose of increasingtheir combined storage capacity.

- Completed in July 2000.

3 Introduction of a prior informationdisclosure system for deliveredin/out containers- The system will enable shippers to

access information in advance oncargoes to be delivered in or out(such as whether the cargo isready to be delivered out) via theInternet or NTT DoCoMo’s i-modeservice, promoting smoother gateclearance.

- to be introduced in September2000.

4. Introduction of a reservation systemfor delivered-in/out containers- By registering cargoes which are

scheduled to be delivered in or outno later than one day prior to thedate of delivery, the cargoes willbe delivered outside the containerterminals (off-dock facilities)around the clock. The system willimprove the function of the con-tainer terminals, including the effi-ciency of storage at the containeryards and the turnover rate ofchassis for container delivery. Alsounder the system, the delivery ofcontainer in/out of the containerterminals will be made to meet theneeds of shippers.

- To be introduced within the year.

Osaka Maritime Museum

“Naniwa-no Umi-no Jikukan” Opened

S ITUATED at the northern end ofSakishima Cosmosquare District inthe Port of Osaka, the Osaka

Maritime Museum was opened to thepublic on July 14, 2000.

The museum was established in orderto enhance the citizens’ understanding of

both Osaka’smaritime historyand the relation-ship betweenpeople and theports and theocean.

The OsakaM a r i t i m eMuseum consistsof two buildings,one onshore andthe other off-shore, linked byan underseaviewing tunnel,with a total floorspace of approxi-mately 20,700m2.



Visitors to the museum enter the onshorebuilding, housing the restaurant and sou-venir shop, and proceed on through theundersea tunnel to enter the dome of themuseum proper. The unique glass domeof the museum was designed by theFrench architect Paul Andreu, and islocated just south of the main passageinto the Port of Osaka.

The semi-transparent outer surface ofthe dome, diameter 70m, consists of 4,800glass plates measuring approximately7,500m2 and weighing 411 tons. Themulti-layered plates have two outer lay-ers of glass and a middle layer of perforat-ed steel. The brightness inside the domeis regulated by the size of the perfora-tions in the metal. To this end, the perfo-rations on the southern side are smallerthan those on the northern side. Thismeans that the northern side is moretransparent than the southern side,allowing visitors to enjoy the harbourview. Moreover, since the light inside thedome escapes through the perforations,even at night the museum itself is a spec-tacular sight.

Amongst the four levels of exhibitshoused in the Osaka Maritime Museum,by far the most outstanding is the full-scale replica of a Higaki Kaisen, a type of17th century sailing ship. This type ofship transported goods such as cotton,tea and rice wine between Osaka, thethen maritime centre of Japan, and thecapital, Tokyo. The restoration of this 150-ton class sailing ship involved sevenyears of research and was completed util-ising as much of the original technologyand material as possible. After its com-pletion in 1999, the ship underwent sail-ing tests and was able to prove its sea-worthiness.

The museum exhibits are groupedaccording to the floor themes listed below

1st Floor “Invitation to the Sea”Hivision TheaterVirtual Simulation Theater

2nd Floor “Ship”30m-long Higaki Kaisen replicaDescription of restoration workConstruction tools and materialsSimulator of “Higaki Kaisen” Race

3rd Floor “Prosperity of Osaka Port”“Miotsukshi”, the city crest, derived from a navigational aidPort development scenery modelSeabourne trade explanation

booth4th Floor ”Transoceanic Cultural

Exchanges”Full scale replicas of figureheads of the tall ships, which came to Osaka in 1983 and 1997Ancient maritime maps and other sailing tools and commoditiesSingle-handed yacht simulatorAmericaís Cup yacht sail designed by Roy LichtensteinDrawings and paintings

The Osaka Maritime Museum hasbecome one of the landmarks of the portas well as contributing to the local cultur-al network of the area through its educa-tional use of hands-on exhibits. Other cul-tural centers in the area include theFureai Minato-kan, the Port of Osaka’sSister Ports Cultural Exchange Center,the exhibition center “INTEX Osaka”,Osaka World Trade Center (WTC) and theAsia Pacific Trade Center (ATC).Moreover, along with the Waterfront Parkand the soon-to-be-completed seasidecanal, the museum will contribute to thepromotion of the whole CosmosquareDistrict. For online information on theOsaka Maritime Museum, contact: http://www.jikukan.or.jp/

Osaka Port: Deepening

Sister Port Relationships

T HE Port of Osaka enjoys friendlysister port relationships withseven major ports of the world.

Since last year, the planting of commemo-rative trees for each port, has begun atthe waterfront park, “Seaside Cosmo”located in the Sakishima Cosmosquaredistrict.

Left to right: Onishi, Choi, Semba, and Kim.

In April 1999§ an Australian wattlewas planted in commemoration of the25th anniversary of the sister port rela-tionship between Osaka and Melbourne.While December saw the Osaka andSaigon sister port relationship’s 5thanniversary being honoured by a plantingof bamboo.

Since this year marks the 20th and 15thanniversary of sister port affiliation withthe ports of Le Havre and Pusan, respec-tively, delegates from both ports were inattendance at the anniversary ceremonyheld on July 14, 2000.

For the Port of Le Havre, a truffle oakwas chosen because of the designation ofan oak leaf on the Le Havre coat of arms.Mr. Yves Gasqueres, JapanRepresentative of the Port of Le HavreAuthority, Ms. Nathalie Vettier,Commercial Attache to Consul General ofFrance in Osaka, Mr. Atsushi Semba,Director General of the Osaka Port &Harbour Bureau and Mr. Hideo Onishi,President of The Osaka Port PromotionAssociation, wishing for deeper and con-tinued friendship between the two ports,attended the ceremony.

The planting of the Korean NationalFlowers, “The Rose Tree of Sharon” incommemoration of the continuing pros-perity of the two ports, was attended byMr. Choi Lark Jung, Administrator ofPusan Regional Maritime Affairs andFisheries Office, Mr. Kim Sun-Heung,Consul of the Consulate General of theRepublic of Korea in Osaka, Mr. Sembaand Mr. Onishi.

Children from the local kindergartenalso participated in the ceremony bless-ing the trees with water and the city's fireboat fleet celebrated the ceremony withcolourful water sprays. It is the hope ofthe Port of Osaka that these trees willlead to a greater international under-standing for the citizens of Osaka, whilstpromoting friendly sister port relation-ships.



Construction of Japan’s

First 16m Deep Berths

T HE city of Yokohama is in theprocess of constructing Japan’sfirst 16-meter deep berths at

Minami-Honmoku Pier to respond to thegrowing size of container vessels. Theplan for the depth of these berths to bechanged from 15 to 16 meters was sub-mitted to and approved by the city ofYokohama Port and Harbor Council.

Subject to approval at the NationalCouncil for Ports and Harbors meeting inJuly, construction is planned for 16mberths where large container vesselswith a loading capacity of over 6,000TEU can smoothly enter and exit theport.

1. Purpose of construction:(1) In order to strengthen the Port of

Yokohama’s international compet-itiveness, the 16m deep-waterberths are being constructed atMinami Honmoku Pier to becom-ing the port’s newest cutting-edge facility.

(2) As an eastern base port of theAsian region for North Americantrade, the port’s functions as afeeder transportation hub forChina and other countries will bestrengthened.

(3) Since it is expected that theworld’s largest shipping companyMaersk Sealand will use the Portof Yokohama as an East-Asianhub port, Minami-Honmoku isbeing developed into a pier wherethe world’s largest-class containervessels now being put into com-mission by Maersk Sealand cansmoothly enter and exit the port.* The world’s largest-class con-tainer vessel: Length:347.0mWidth:42.8m Draft:14.5m

satisfaction the path it took in itsgrowth to become a leading port in theregion. The Port which now has acapacity to handle 80 million tones ofcargo, including a capacity to handle3.6 million TEUs, offers internationalstandards in ship and cargo handling.

The nation’s premier gatewayrecords more than 11,000 ship arrivals ayear. The number of container vesselliner calls at the port is bout 7,000 mak-ing it into the league of first 10 globalports with the higher number of linercalls. The port has recorded an averagegrowth rate of 14 per cent in the lastdecade.

Given the propensity for growth,there is no doubt that Port Klang willincreasingly feature as an importantport in the development of trade in thisregion. The development of the port willnot only continue to be influenced bythe changes and growth of the nationaleconomy but more so by the fluid devel-opment in regional and global trading

Port Klang:

The Growth Ahead

T HE notion of Port Klang, the suc-cessor to Port Swettenham, wasfirst conceived at the dawn of

the 20th century as a gateway for theexports of rubber and tin. As a railway-owned and operated port, the prospectof Port Klang emerging as a premiernational port was never in doubtbecause of its distinct geoeconomicadvantages.

Over a century of its growth, PortKlang, as it came to be known in 1972,has demonstrated its success in becom-ing the national load center accountingfor more than 37.2 per cent of the totaltrade handled by all ports on the penin-sula. Port Klang is now vigorouslyevolving into a regional transshipmenthub defying earlier predictions thatsuch a role was totally inconceivable.

As the dawn of the new centurybreaks, Port Klang can look back with

2. Outline of Minami-Honmoku Pier’sMC-1 and MC-2 container terminalsTerminal Area: 37.5ha (Japan’s

largest)Berth length: 750m (2 berths)Gantry cranes: 5 mega-gantry

cranes to accommode 22 rows of containers

Container Storage Capacity: approx.17,000 TEU (Japan’ largest)*The numerical values of the terminalarea and lengths of berths apply tothe altered plan.

3.ScheduleMid-July 2000: National Council for

Ports and HarborsPlanning Meeting

March 2001: Completion of termi-nal facilities (man-agement facilities,gates, yard pave-ment, etc.)

Spring 2001: Opening of MC-1and MC-2 containerterminals

* Mega-gantry crane: Cranes larger than a super-gantry crane (Until now, Japan’slargest ablle to handle 17 rowsof containers)



regimes and shipping patterns.

Major developments to note in the growthof Port Klang in the years ahead, will include:• Increasing the share of transshipment con-

tainer traffic at the port;• A higher level of integration with ports in

the national ports system as well as withnew regional ports;

• More direct calls and mainline services;• Increasing trend toward trade lane special-

ization at the port by container lines;• Increases in the size of vessel, both in con-

tainer ships and deep-draft bulk carriers;

• A higher rate of handling cargo (both as aresult of improved worker productivityand application of state-of-the-art technol-ogy);

• An increasingly paper-less environmentthrough a faster rate of automation and itsapplication;

• Increases in average shipment size pershipper;

• Higher rates of ship exchanges;• Faster turnaround time of vessels; and • Increases in the range of value adding and

distribution activities

Port Klang improves

ranking

PORT Klang has made a majorleap into the world league ofcontainer ports by taking the

14th position last year, from the 21stplace it occupied in 1998. The new plac-ing made Port Klang the only port in theworld to record such a dra-matic improvement in rankingamong the top 25 containerports in the world.

Port Klang, which alsorecorded the largest increasein its container throughputamong the first 25 major con-tainer ports in the world, tookthe 14th position after Tokyoin the recently-publishedranking of world containerports by ContainerisationInternational Yearbook 2000.

The new ranking of worldcontainer ports, which sawHong Kong dislodgingSingapore to take the topposition, recorded Port Klangwith a 40.1 per cent increasein traffic totaling 2.55 millionTEUs (1998:1.82 million TEUs).

Port Klang, which netted again of 730,401 TEUs last year,attributed 37.9 per cent of itstraffic, totaling 966,090 TEUslast year, to transshipmenttraffic.

The remarkable improve-ment by Port Klang saw itovertaking ports such asYokohama, Kobe, Gioia Tauro,San Juan and Tanjung Priok.

Tanjung Priok, which wasahead of Port Klang in 1998 in the 19thposition, came a place behind PortKlang last year with a traffic volume of

2.27 million TEUs.The second highest increase in the

container traffic after Port Klang wasrecorded by Shanghai with a 37.3 per-cent increase totaling 4.21 million TEUs(1998:3.06 million TEUs) moving it tothe 7th position (up from the 10th posi-tion it occupied in 1998).

Source: Containerisation Internationalyearbook 2000

Port Zayed embarks on a

two-phase development plan

P ORT Zayed’s performance levelsand productivity were anticipatedin the Development Master Plan,

which was launched in 1993 and whichstarted to yield successful results twoyears ago.

These developments underlined theability of the Port’s workforce to cope withthe modernisation process and reflectedthe success of the Port’s marketing effortsin attracting international shipping linesby offering them the best services andfacilities at very competitive rates.

It may be noted that Port Zayed record-ed a growth rate of 47% during the lasttwo years. Container cargo throughputreached three million tons in l999 froml.812 million tons in l997. General and bulkcargoes rose to 4.723 million tons from3.506 million tons over the same period.The number of vessels calling at PortZayed rose to 2,613 in l999 from 2,154 inl997.

Furthermore, Port Zayed has played amajor role in increasing the volume of AbuDhabi’s foreign trade by receiving ocean-going vessels and by rendering the bestservice for import and export operationsas well as for transshipment. The volumeof non-oil foreign trade through PortZayed stood at Dhs 20.915 billion in l998against Dhs 17.855 billion in l992.

In I999, the Port achieved a growth rateof 13% in the handling of TEUs against theprevious year, and witnessed a 12%increase in general container cargo.

Last year’s development drive at PortZayed led to a remarkable increase in con-tainer and general cargo handling despitethe economic recession which hit SouthEast Asia and affected various regionalports. In l998, the year of Asian crisis, PortZayed observed an increase of 34% in con-tainer traffic and another increase of 25%in general cargo.

As regards the privatisation of certainfacilities at the Port, special committeeswere set up at the Port’s Research andStatistics Centre to study the feasibility ofsuch a process. Even though privatisationhas become a global economic trend insome developing countries, there are stillsuccessfuly government-run ports thatmaintain high competence and efficiency.

We cannot emphasise enough that, byand large, the actual secret of PortZayed’s continued success is that we arepractical and have the pragmaticapproach of a progressive and aggressivemodern enterprise. Thus we work onremoving bureaucratic attitudes in secur-ing all necessary facilities that can helpattract new customers.

TOP 25 CONTAINER PORTS IN THE WORLDIN 1999

RANKING WORLD99 98 PORTS 1999 TEUs

1 2 HONG KONG 16,100,0002 1 SINGSPORE 15,900,0003 3 KAOHSIUNG 6,985,3614 5 BUSAN 6,439,5895 4 ROTTERDAM 6,400,0006 6 LONG BEACH 4,408,4807 10 SHANGHAI 4,210,0008 8 LOS ANGELES 3,828,2189 7 HAMBURG 3,750,000

10 9 ANTWERP 3,614,24611 13 NEW YORK 2,863,34212 11 DUBAI 2,844,63413 13 TOKYO 2,700,00014 21 PORT KLANG 2,550,41915 19 TANJUNG PRIOK 2,273,30316 16 GIOIA TAURO 2,253,40117 17 KOBE 2,200,00018 15 YOKOHAMA 2,200,00019 22 BREMERHAVEN 2,180,95520 23 MANILA 2,103,72121 19 SAN JUAN 2,084,71122 20 ALGECIRAS 2,000,00023 28 LAEM CHABANG 1,828,46024 24 COLOMBO 1,704,38925 26 OAKLAND 1,558,900



Launch of Tokyo News Service's WebsiteTokyo News Service, Ltd. has posted its website “S&TN OnLine” on the Internet. Provided on this homepage for easy reference are liner shipping schedules and related

data extracted from Shipping and Trade News and Sea Sprite.With use of the website initially being offered free of charge, we would like to invite you to sign up to access the latest

updates on the homepage by first entering the information requested on the registration page.

URL: http://www.tokyonews.co.jp/marineInformation posted: 1. Sailing schedules 2. Ship details 3. Telephone and fax numbers of shipping firms and agents 4. Surcharges 5. News (in preparation)

S & TN OnLine

Tokyo News Service, Ltd.

Wijsmuller wins another major

SPM contract, this time in Yemen

T HE Wijsmuller Group, through itssubsidiary Cory Towage Limited(now renamed Wijsmuller Marine

Limited) has been awarded a contract toprovide marine services at the Sah Shihroil export terminal in Yemen forCanadian Occidental Petroleum Yemen,otherwise known as CanOxy Yemen.

The Ash Shihr terminal handles crudeoil originating inland. This is piped tothe terminal storage tanks from where itis pumped to loading tankers at the sin-gle point mooring buoy (SPM) locatedthree miles offshore. The crude is nor-mally destined for ports in the Far East.The SPM is capable of handling thelargest of tankers and regularly receivesvessels of 300,000 dwt.

The Wijsmuller contract, which com-menced on June 1, involves the provi-sion of a specialist multipurpose support

vessel, a line-handling tug, operation ofa pollution control vessel and mainte-nance of the SPM both above and belowthe water.

During loading operations, which canlast for more than two days, the multi-purpose vessel Riyan (5331 bhp) attach-es a tow line to the stern of the tanker tohold her clear of the SPM. The linehan-dling tug Al Hami delivers personneland equipment to the tanker and thenhandles the hoses during the berthingoperation.

Local operating conditions can be par-ticularly difficult during the south west-erly monsoon which normally lasts fromJune until October.

The new contract requires the mainte-nance divers to be based offshore. Riyanhas a diving compression chamberaboard and her facilities have beenupgraded to accommodate a total crewof 19 including 5 divers. The waterdepth, at 45 meters, is within the limits

The UAE has several hub and subordi-nate ports. However, despite theirautonomous management and resources,they all share the task of boosting thecountry’s economic prosperity, in additionto highlighting the importance of enhanc-ing co-operation amongst the GCC andArab economic institutions.

Port Zayed continues to make substan-tial investments and has embarked on atwo-phase development plan that incor-porates the acquisition of new containerhandling equipment, the building of newberths and eventually the creation of asecond container terminal in the Port.Other projects include the deepening ofthe Port’s navigation channel, construct-ing industrial ports in Sader andMussafah and expanding the storagearea.

A new cold store with a capacity of 15-20 tons is now ready to cope with theincreasing imports of cold and refrigerat-ed goods.

The increase in the number of shippinglines calling at Port Zayed to 51 hasplayed a substantial role in increasing thecountry’s commercial activities. As for thePort’s future plans, Port Zayed will pro-cure six new gantry cranes so that thetotal of ship-to-shore cranes will reach 11by the end of 2006.

Port Zayed is well on its way to becom-ing a model port of the 21st century. It hasthe dynamism of a progressive-mindedleadership, the resources of a nationblessed with natural riches, a strategiclocation and a technologically advancedinfrastructure that is amongst the best inthe world.

of air diving.Both vessels provided by Wijsmuller

for the contract underwent modificationsto meet CanOxy’s contractual require-ments. The 70-ton bollard which pullsRiyan now has an A frame on the sterndeck and a side crane to perform liftingwork at the buoy. She also has two addi-tional winches to allow the deploymentof concrete block moorings because ofthe relatively poor holding ground. Apusher bow is included and a twin-diesel rigid inflatable boat (RIB) hasbeen provided for the transport of per-sonnel and stores.

The 1991 built Al Hami, a 21m, 17 ton-bollard pull line-handling tug, is config-ured to handle hoses and to take an Aframe and a winch unit to performplough dredging.

Both tugs are named after villageslocal to the CanOxy Yemen Terminal.

Fifty-five personnel are employed onthe contract to enable 24 hours per day,365 days per year coverage. Thirty-eightof this number are Yemeni nationalswith the majority having been employedat the terminal since its start-up in 1993.

In Yemen, Wijsmuller will utilise itsexperience of SPM and offshore terminaloperations gained in Europe, WestAfrica, the Middle East, South Americaand the Caribbean. The group has beeninvolved in the SPM market since 1980,starting with contracts in Libya and thenAngola where it provided berthing andother marine services to the offshorefacilities of Cabinda Gulf Oil in Angolafor 16 years in very difficult operatingconditions without a single day’s downtime.

More recently, in 1999, Wijsmullerwon a contract to provide a wide rangeof marine services at the Butinge SPM inLithuania, the first SPM in the Baltic Sea.

Wijsmuller Group operates 140 vesselsin more than 20 countries worldwideproviding harbour towage, terminal andoffshore support, maritime services, sal-vage and ocean towage.


IAPH Award Scheme - Essay Contest IAPH Award Scheme - Essay Contest

INTERNATIO

NAL

ASSO

CIATION OF PORTSAN

DHARBORS•

1. Essays should be written in English, French orSpanish, and submitted to the Secretary General,the International Association of Ports andHarbors, 5F, North Tower New Pier Takeshiba,1-11-1 Kaigan, Minato-ku, Tokyo 105-0022, Japan.Hand-written ones are not to be accepted.

2. The suggestions to be made should focus onCargo Operations Procedures, Maintenance ofCargo Handling Equipment, and Computerisationof Financial Management System. The cost andbenefits of each suggestion have to be quantified,with an implementation schedule drawn and solu-tions to overcome implementation problems iden-tified.

3. Entries should be made by individuals employedby IAPH members, and should be the originalwork of the entrant. Those which are the resultof official studies or otherwise sponsored projectswill not be eligible.• Entry texts should not exceed 20 pages

excluding a reasonable number of appendicescontaining tables, graphs or drawings.

• The paper size must be A4 (21.0 x 29.7 cm).• Regardless of language used (English, French

or Spanish), the entry paper must be accom-panied by a brief summary in English.

• Three (3) copies of the entry paper should besubmitted to the IAPH Head Office at theabove address.

4. Entries will be judged by a panel of expertsappointed by the Chairman of the Committee onHuman Resources (formerly called CIPD). Thepanel will give greater merit to papers identifyingand evaluating specific improvements than toentries covering a wide range of improvements ingeneral terms.

5. The First Prize for the winning entry will consistof:• The Akiyama Prize (a silver medal plus

US$2,000 or the equivalent in local currency);and

• An invitation, including traveling costs andhotel accommodation, to attend the 22ndWorld Ports Conference of IAPH, to be heldfrom 19-26 May 2001 in Montreal, Canada.

6. In addition to the First Prize, Second, Third andFourth Prizes of US$500, US$400, US$300 will beawarded to the next best entries.

7. Additional prizes of US$100 each will be awardedto any other entries judged by the panel to be of asufficiently high standard.

8. A summary of winning entry may be eligible forpublication in the "Ports and Harbors" magazine.

9. At the decision of the panel, a bursary may beawarded to any one prize winner (subject toagreement of the employer).

10. The closing date for receipt of entries is 30September 2000.

Conditions for Entry to the Essay Contest 2000/2001

“My suggestions for the three changes required to improvethe quality of service in my port”

Your answer could win you the Akiyama Prize, a silver medal and US$2,000 in cashplus

an invitation, including traveling costs and hotel accommodation, to attend the22nd World Ports Conference of IAPH, 19-26 May 2001, in Montreal, Canada !

IAPH invites entries for its 2000/2001 award scheme from those working at all levels in IAPHmember ports/organizations in developing countries. The scheme seeks to generate new ideas

through the essay contest, which has been held biennially since 1979.

Ports Harbors - IAPH

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