Multi-purpose terminals offer diversity, valuable service

With more cargoes being transported by container, it’s no surprise that seaports are expanding and building container terminals. But don’t underestimate the importance of multi-purpose seaport terminals, which play an important role in attracting highly competitive breakbulk, bulk and roll-on/roll-off (ro/ro) business. While their volumes fluctuate depending upon domestic and global supply and demand, these commodities dovetail with expanding manufacturing opportunities at home and abroad. “They drive a lot of macro changes in our economy,” said Georgia Ports Authority Executive Director Curtis Foltz to AJOT in a recent interview. While much of that business is starting to shift to containers, Foltz points out that much of those products will continue to move in bulk-type vessels. “So you need to have multi-purpose facilities to handle those products,” he remarked. While Foltz sees resurgence for multi-purpose terminals, he contends volumes are less predictable than container growth. Still, he maintains non-container facilities add value to seaports. Jim Newsome, South Carolina Ports Authority (SCPA) president and CEO concurs, stating that he firmly believes it is good to be diversified. “You don’t want all of your eggs in one basket,” he said. Roy Schleicher, Jacksonville Port Authority (JAXPORT) executive vice president remarks that ports are realizing the importance of multi-purpose terminals. “I’m seeing a more competitive market,” he commented. “Even some of the ports known strictly for its container business are starting to poke around and grabbing more of that.”

Shannon Feeley, assistant director, Cargo Business Development, Port Canaveral, contends that multi-purpose terminals allow seaports to offer customers many options. She maintains that multi-purpose facilities like those at Port Canaveral offer flexibility of shipping via multi-modes. “The addition of our new container terminal and the increased ability to handle a variety of cargoes through our facilities has allowed us to diversify our cargo base and increase revenues,” she said. “Handling a variety of cargoes allows for a better rounded portfolio that can help a company weather the cycles in our industry.” The Maryland Port Administration (MPA) understands the importance of cargo diversification at the Port of Baltimore. “Even with our first strategic plan in 1996, we never lost site of the importance of accommodating diversified cargos,” said Dave Thomas, MPA director of operations. Southeast Ports The Southeast is particularly well poised for growth for breakbulk, bulk and ro/ro shipments. In recent years, scores of manufacturers have expanded or relocated there, helping drive today’s US manufacturing renaissance. GPA has benefited from the port’s separated container and multi-purpose facilities dedicated to ro/ro, breakbulk, forest products, heavy construction and mining machinery. Consequently, GPA can cater to the ebbs and flows that occur in different economies. “This has worked exceptionally well for us, particularly given continued globalization of manufacturing,” Foltz said. “Whether it’s automobiles, machinery involved constructing factories, steel that goes into auto manufacturing, crude rubber for tire manufacturing to support the Southeast’s auto manufacturing trade, there are products that naturally don’t move in containers. It’s not a one-size-fits-all model.” GPA operates three general cargo facilities at the Port of Brunswick. Colonel’s Island Terminal is its largest ro/ro facility with three berths and three on-terminal auto processors. In recent years, its automobile business has exploded. “We’ve had double-digit growth every year over last three or four years,” Foltz said. “It’s now the second busiest auto processing terminal in the country. Last year we handled 675,000 ro/ro units.” Colonel’s Island is among the largest deepwater agri-bulk operations in the US South Atlantic. The facility features a dedicated agri-bulk berth and is capable of accommodating a diverse group of agri-product in combined flat and vertical storage. It, too, handles significant volumes. “We have seen resurgence in biofuels coming out of the Southeast, predominately wood and peanut pellets, and wood chips,” Foltz said. In the last four years, shipments of these commodities grew nearly 25%. GPA operates a third facility in Brunswick that handles both bulk and breakbulk dry commodities. A general cargo terminal in Savannah, 200-acres in size, also handles everything from steel, forest products, to automobiles, farming and mining machinery. While containers encompass 80% of the Port of Charleston’s business, Newsome sees breakbulk, ro/ro and, particularly, project cargo activity at the port key to South Carolina’s economic development. “There is a lot of automobile and natural gas turbine manufacturing going on in the region,” Newsome commented. “We covet that type of cargo.” For example, Charlotte, NC-based Duke Energy Carolinas is investing in natural gas, and launched a $9 billion fleet modernization program that is moving forward with five new natural gas-fired plants in the Carolinas. GE is investing heavily in new, larger natural gas turbines being constructed at its Greenville-headquartered gas turbine manufacturing and engineering facilities. Worldwide demand for low-cost natural gas is also creating export opportunities for gas turbines. In addition, four permitted nuclear power plants are underway in the United States: two in Georgia, and two in South Carolina. “We handle significant quantities of nuclear reactor parts,” Newsome said. In addition, Spartanburg, SC is home to BMW’s North American manufacturing plant—the sole global producer of BMW X models that are exported worldwide. Port of Charleston’s breakbulk activity for FY 2014 totaled 763,230 pier tons—3.63% over plan. In fact, in the last three years, SCPA increased non-containerized cargo 62% and doubled non-container cargo in the last four. Helping to accommodate the shipments are inland bridge clearances out of Charleston for both truck and rail. “This is a huge selling point,” said Brad Stroble, SCPA manager for non-containerized sales. Another plus, all breakbulk terminals at the Port of Charleston are dual-served by CSX and Norfolk Southern (NS). And the port offers full dock rail that runs alongside the vessel berth. This reduces risk, cost and limits handling. “Not many ports offer this,” Newsome said. The Port of Charleston has invested heavily in breakbulk facilities. Most noteworthy, it spent $30 million to transform the Columbus Street Terminal into a state-of-the-art project and specialized breakbulk and ro/ro facility. This year the port introduced a heavy lift floating barge crane with 500-ton capacity. It can handle 95% of all of the project cargo manufactured in the world. Called the “Ocean Ranger”, the crane is mounted on a 200-foot by 72-foot ABS deck barge and has the ability to work all terminals in the port. Florida Ports Multi-commodity terminals have always been important to JAXPORT. “We believe they give us great diversification,” said Schleicher. During the economic downturn, JAXPORT was one of the few ports in the nation to have positive revenue and continued growth. “We’ve had 13 years of continued revenue growth,” he said. JAXPORT is well known for handling breakbulk commodities, especially automobiles.

The 754-acre Blount Island and 173-acre Talleyrand Marine Terminal operate as JAXPORT’s multi-purpose terminals. Blount Island is its biggest and one of the largest vehicle import/export centers in the US. It handles ro/ro, heavy lift, breakbulk and liquid bulk cargoes. Talleyrand handles containerized freight and breakbulk, automobiles and liquid bulk commodities, such as molasses and vegetable oils. Breakbulk cargoes include steel, lumber and paper, and a variety of frozen and chilled goods. A wide-ranging effort is underway to enhance infrastructure at Blount Island and Talleyrand with new equipment and upgrades to wharves, rail and terminal areas. A well-designed, phased reconstruction over several years is allowing operations to continue while fortifying the facilities for future growth. The Blount Island Marine Terminal is undergoing structural rehabilitation with the rebuilding of six berths. The project is anticipated to be completed in 2015. Structural rehabilitation of sheet pile walls in four berths at the Talleyrand Marine Terminal will begin next year. The project is anticipated to be completed in 2016. Port Canaveral has historically been known for handling bulk and breakbulk. “At Port Canaveral, businesses can access vertically integrated operations such as stuffing, un-stuffing, bagging and packaging shipments, use of the terminal for warehousing and distribution, and in some cases, in-house trucking services,” Feeley said. “Our terminals are focused on containers, heavy lift and project cargoes, breakbulk, ro-ro and bulk commodities.” Port Canaveral has seen its volumes of cargoes fluctuate over the last several years. Fertilizer (bulk) increased of an average of 6% during the last three years. Feeley anticipates continued growth based upon the addition of new product lines. During the height of the building boom, Port Canaveral handled as much as 600,000 tons of lumber and plywood (breakbulk). “During the recession, this number decreased to as low as 4,000 tons in 2011,” Feeley reveals. “It now has begun to recover, growing on average of 34% during the last three years.” While not a part of a multi-purpose terminal at Port Canaveral, Martin Marietta Materials has seen a steady 14% growth in its shipments of aggregates (bulk) over the last three years. After seeing a decline in the newsprint (breakbulk) market due to the increase in electronic media, this cargo has returned to Port Canaveral with an expected annual volume of 32,000 tons. Investments are being made in multi-purpose terminals at Port Canaveral. The Port Authority recently invested in its North Cargo area with the anticipation of opening a new container and multi-purpose terminal next Spring. This includes two new berths, the purchase and refurbishment of two ship-to-shore (STS) cranes, paving, storm water and state-of-the-art gate access. “Additionally, we are in the process of securing on-dock rail access to our North Cargo area,” Feeley added. “The decision to make these investments was made after carefully studying the market. We are located just 45 minutes from one of the fastest growing populations in the United States. Additionally, Central Florida offers access to a large corridor of distribution and manufacturing facilities.” Meanwhile, port tenants also are making investments. “GT USA, which will operate our North Cargo terminal, has committed to invest $100 million,” Feeley revealed. This will include terminal operating systems, gate complexes, handling equipment, and infrastructure. Ambassador Services, which operates its South Cargo terminal recently has invested $3 million in their facility with a focus on creating energy efficiencies in their refrigerated warehouses and equipment, including a new radial stacking conveyor system. Private terminals also are making investments to enhance their future growth plans. Morton Salt recently has committed to expand their terminal by two acres and build new warehousing and processing facilities to accommodate several new product lines. Hanson Slag is building storage domes and a loading system to support their export initiatives. Martin Marietta Materials recently invested $1 million in a new bulk conveyor system. Also, the port’s newest cargo tenant, Port Canaveral Scrap Terminal, recently invested $1.3 in infrastructure and equipment to develop a four-acre export facility. Mid Atlantic Ports Further up the Coast, the Virginia Port Authority’s Portsmouth Marine Terminal (PMT) reopened in September after being shuttered for almost four years. While PMT will provide some short term relief for container traffic for both Norfolk International Terminals and Virginia International Gateway, officials are still uncertain as to what cargoes will ultimately be handled at PMT. There is talk of automobiles. The Port of Philadelphia has successfully held onto niche traffic in forest products, perishable cargo, and automobiles. Philadelphia has a virtual lock on shipments of stone fruit and seasonal fruits from South America, all of which comes on ships smaller than the current “Panamax” limits. Comparing the period of January to June 2014 with January to June 2013, the Philadelphia Regional Port Authority (PRPA) reported that breakbulk cargoes have increased almost 13%; ro/ro, almost 5%; and liquid bulk, more than 4%. Among breakbulk cargoes, steel and forest products showed particular gains, 67% and 14% respectively. Approximately 71% of all foreign tons moving through the Port of Baltimore are of the bulk variety. Exported coal is its biggest commodity (49.7%), followed by imported salt (3%). The remaining 29% are what the MPA considers General Cargo (automobiles, machinery, forest products, breakbulk and containerized cargo). The port is ranked tops in the US for handling autos and light trucks, farm and construction machinery, imported forest products, imported sugar, imported aluminum and imported gypsum. Much of the ro/ro business takes place at the 578-acre Dundalk Marine Terminal, which was designed in sections to handle specific niche commodities for efficient cargo flow. “For example, at Dundalk we have a section with dedicated sheds to handle forest products,” Thomas said. “In the terminal’s center section, we have an open lay down area for automobile storage and dedicated processing buildings.” MPA recently signed a long term agreement with Wallenius Wilhelmsen Logistics (WWL). The port constructed an additional berth designed in consultation with WWL that is more accessible during heavy weather. This will help reduce potential delays. In addition, the BMW Group opened its newest Distribution Center at Dundalk. The imported BMW vehicles are being processed by WWL. “That started this year and will be about 60,000 cars per year,” Thomas revealed. Grimaldi Lines, which handles the West Africa trade at Dundalk, is also expanding its services next year from two calls a month to weekly. Automobiles are clearly the star at the port, while other ro/ro commodities have slacked off due to the European economy and the Russian trade embargo. Last year the port moved 751,000 cars at both public and private terminals. “We are on target to surpass that record this year,” Thomas said. To increase efficiency in the movement of machinery, automobiles and box cars by rail, MPA has invested in a number of improvements at Dundalk, such as dedicated rail yards to handle machinery and machinery being delivered by unit trains. “We have manufacturers that are dedicated to just one train, which can be as long as one and one-half miles,” Thomas explained. Two additional locations were also added for Dundalk’s auto trade. MPA also expanded and improved the lay down area for box cars where shipments can be transited to a shed. In addition, MPA rebuilt Dundalk’s Berth 5. “In that berth design, we added a heavy lift pad on which we were able to put mobile cranes,” Thomas said. “This makes it possible to more efficiently handle specific project ships that transport heavy shipments such as transformers.” A new heavy lift crane was purchased for the berth, which brings its total to two. The mobile cranes can also be easily moved to other terminals at Dundalk if needed. “We have rail coming alongside the ships, so it’s a nice logistics package we offer carriers,” Thomas said. “This makes the berth more efficient and load handling less expensive.” Heavy lift pads were also installed at three other berths at the 13-berth Dundalk. Meanwhile, MPA is getting rid of any equipment that encumbers the terminal. For example, four cranes that are no longer used at Dundalk have been taken down. “This has to do with the fact we are moving our container business to Seagirt Marine Terminal where we have the deep berth and the super-size cranes,” Thomas added.