Editor’s note: The WWPC (Worldwide Project Consortium) was founded in 1998 with the aim to connect non-asset independent project cargo forwarding companies under one umbrella. Through the WWPC, shippers, carriers and forwarding partners have a first class reference source to locate the most professional project cargo specialists in the represented countries. The Group also runs the CEE (Cargo Equipment Experts), which is strictly for asset based companies that handle the actual transport of heavy and outsized cargo with their equipment and in-house services. Both networks are unique in their structure and marketing towards shippers and project owners. Based in Spain, Wolfgang Karau, a veteran in the project cargo business, is operations director for both networks. AJOT: The WWPC network gives you a unique global viewpoint. What do you think are the main differences between the “project cargo” (heavy lift/oversized load) business today as compared with four or five years ago? Karau: As a networks owner and operator I have the privilege to receive hard proof of business activities by way of articles and pictures I receive from the networks’ members which are being used for publication to boost awareness about the membership companies, their services and the network they are part of. In addition I also operate my own project forwarding company, which adds on to the information flow about global activities in the area of project forwarding. As a summary of the information available to me I can see the pattern of 10 year cycles, as has been the case in the shipping industry for many decades already. 10 years of prosperous and climbing business activities are followed by 10 years of stagnation, volume shrinking and ceasing opportunities. Comparing the 10 years prior to 2008 to what has happened after 2008 until today gives strength to this pattern. AJOT: How does the project cargo market today compare to the period leading up to the global crash of 2008? Are we getting back to pre-crash levels? Karau: In my view we may not get back to pre-clash levels, but maybe close to it in due time. Mistakes had been made in the past, and people and investors learnt from them and are more cautious. Present overcapacity in seagoing tonnage for heavylift cargo and an obvious shortage of cargo flow in that segment are undeniable factors which already play a role regarding levels of freight rates and ship-owners looking to consolidate their fleet or to merge. AJOT: We’ve seen a spike in oil and gas projects in North America but globally, what project cargo sectors do you see doing well and in what regions? Karau: Large modules, oil and gas equipment, shipbuilding, mining and power – those industries will always be there and require transportation. But yes, based on my experience, the amount of large-scale infrastructure projects has scaled down, as has the flow of cargo required for such projects. The construction boom in UAE, shipbuilding in China, Korea and Japan – it is still there and generates cargo flow but certainly not in the same amount of freight tonnes as prior to 2008. Certain European countries have experienced booming export figures in the past two-three years, serving these industries. AJOT: Do you think the companies involved in big projects are now leaning towards developing their own “assets” more so than in the past or is this more a project by project business decision rather than a business style? Karau: Yes, it seems to be a logical decision for any project underwriter or forwarder wanting to operate their own heavy equipment on location to be able to deliver the projects as agreed, and at the same time adding assets to their company, thus creating value for their customers and themselves. AJOT: Conversely, do the mid-sized project companies tend to gravitate more to the non-asset owned business model? Karau: Asset owned businesses have an advantage above non-asset based businesses as they do not have to divide their profits with any intermediates or sub-contractors. Shippers and project owners tend to rely on cooperation with one source for required logistics services only. We have seen evidence to adding required equipment for a certain project already within our networks membership.