The global trade of grains does not generate the same volumes as coal and iron ore. But as a cargo, grains tend to be both more valuable and more delicate than either of the leading bulk cargoes, which puts a premium on dedicated handling solutions at ports. Moreover, traded volumes are on the rise, generating substantial fresh demand for dedicated terminal facilities.
Certainly, bulk handling manufacturers are keenly eyeing growing grain markets as a source of fresh orders. Adrian Hinderling, Bühler head of sales – grain storage, tells Port Strategy that the company has received most interest in its range of port gear for grain loading terminals from ports in Brazil, Argentina, Ukraine and Romania, while the most active regions for ship-unloading terminals in recent years have been China and Middle Eastern countries reliant on imports.
A spokesperson for Bedeschi largely echoed Hinderling’s sentiments, noting that in recent years North and South America, Eastern Europe and China had generated strong orders and demand. “We are confident that the market will increase in these areas and we’ll find more and more opportunities in Africa as well,” he says.
With traded volumes showing consistent growth, the optimism of both leading manufacturers is well judged. The International Grains Council recorded global exports in the 2016/17 season of 351.4m tonnes. This was up from 345.7m tonnes a year earlier, 270.8m tonnes in 2012/13 and just 222.2m tonnes in 2006/07.
The European Union and the North and Central America region (Canada, Mexico and the US) both recorded substantial export gains over the decade 2006/2007 to 2016/2017, with the former increasing exports from 21.4m tonnes to 38.0m tonnes, and the latter up from 108.2m tonnes to 122.3m tonnes.
Grain giants
However, the biggest winners over the period were South America and the Black Sea region. As reported in the last issue, Brazil’s exports of soybeans have accelerated throughout the last decade, but its exports of grains have also been strong, up from 11.1m tonnes in 06/07 to 32.2m tonnes in 16/17. Argentina saw its exports rise from 28.1m tonnes to 43m tonnes in the same period.
But those hikes have been far surpassed by the Black Sea region where Russia has increased exports of grains from 12.7m tonnes in 06/07 to 36.5m tonnes a decade later, and the Ukraine has seen exports soar from 9.5m tonnes to 44.9m tonnes over the same period. This has both prompted and been facilitated by a regional surge in port investment.
“The construction of new ports and specialised grain terminals in Ukraine and Russia was spurred by rich grain crops over last few years resulting in a stronger demand for effective and cheap transhipment services,” explains a spokesperson for consulting agency UkrAgroConsult.
The largest ports for grain handling in the Black Sea region currently are the ports of Constanza in Romania, Odessa, Yuzhny and Chernomorsk in the Ukraine, and Novorossiysk and Taman in Russia. According to UkrAgroConsult, the potential for further export boosts is continuing to attract port investors. “By mid-2018, it is planned to complete the construction of the Comvex terminal, which operates a berth capable of receiving capesize vessels,” says the spokesperson. “The grain-handling complex will be the largest in the port of Constanta, able to handle 3.5m tonnes of grain per year.”
In Russia, the spokesperson says United Grain Company is seeking to invest at Novorossiysk. “Currently, the investment program of the terminal development is being implemented,” she adds. “According to the forecast in 2018, the turnover of the terminal will increase by about 16% compared to 2017 to 7.1 million tonnes. In the future, due to the development of railway infrastructure, the volume of transhipment is expected to increase to 12 million tonnes per year.”
“Also, there are a number of potential projects for building grain terminals in Russia’s Far East. These include a 10 MMT terminal in Zarubino and a project of Agrarian holding LLC Saho Company Group and Mitsui & Co for the construction of a 1.5 MMT terminal in Vladivostok.”
One major new terminal constructed at Yuzhny, Ukraine, will open later this year and will be operated by agri-giant Cargill which has a 51% share in the project with the rest owned by MV Cargo. The export terminal will have capacity able to handle 5m tonnes of grains per annum with the terminal boasting a depth alongside of 16 metres, ideal for panamax vessels. It will also offer 14 silos and storage for 300,000 tonnes. Construction of the terminal started in 2016 and handling trials were due to start this spring.
“UkrAgroConsult believes that construction of the Cargill terminal will help Ukraine to export more grains to countries like China, Japan and Indonesia,” says UkrAgroConsult.
Brazil and China
Looking ahead, Bühler’s Mr Hinderling says Brazil’s new export routes through northern ports is driving demand for handling solutions, while “heavy investment in China” and the “replacement of older equipment” in the US are also driving demand for port solutions. He also predicts that China’s Belt and Road Initiative (BRI) will boost investment in CIS and African ports.
Asked how Bühler was continuing to innovate its grain terminal handling portfolio, Mr Hinderling tells Port Strategy that the company’s shiploader portfolio had been known for decades for its loading arms with signature kick-system for optimal loading into ship hatch corners. “These loading arms have now been heavily standardised in order to provide maximum flexibility regarding the application the loading arm is being used in,” he adds. “As a result, a similar loading arm can be used as an off-the-shelf retrofit for existing grain loaders or even for newly built non-Bühler shiploaders.”
“Of course, every loading arm comes with the possibility to add a spoon or the Bühler RGLZ dust suppressor. Using the standard loading arm portfolio also allows for reduced lead times for Bühler stationary or mobile shiploaders. The loading arms are delivered pre-assembled in order to reduce on-site installation time.”
Other recent innovations have focused on further optimising performance by reducing downtime. “Predictive maintenance can have a massive impact on availability,” said Mr Hinderling. “In 2017 Bühler launched a mobile app which allows [operators] to check the ‘health-status’ of all the major machines in a grain storage facility. Instead of running on a time-based maintenance schedule, the Bühler digital solution uses sensors and a broad database to predict when and what maintenance needs to be done on a machine. This digital application will be expanded and will include ship-unloading and shiploading machinery as well in the very near future.”
HANDLING OPTION THAT PAYS OFF
Ports looking to boost grain throughput do not have to invest in expensive specialist grain handling gear, according to one manufacturer.
RAM Spreaders has developed a system which it claims removes the need to construct expensive silos at ports. According to company representative Cameron Hay, the export of grains traditionally requires the use of dump trucks, special bulk rail wagons, silos and dedicated bulk loaders. “The problem with these conventional systems is the high cost and inflexible fixed structure at the port preventing other activities,” he says. “Further problems in the logistics process are material losses at transfer points, clean-up costs and in some cases contamination of the grain by rodents.”
RAM’s Containerised Bulk Handling (CBH) system facilitates the containerisation of bulk products such as grain at inland depots or farms into specialized 20’ high cube containers with a payload capacity of 27 tonnes. The containers are sealed with lids to protect the cargo from rain or contamination and to eliminate potential dust and spillage. The box is then transported to the port’s yard where the loading process is completed using a specialized rotating spreader produced by RAM and able to handle food grade containers. Once the vessel is alongside, the containers are handled as conventional containers delivered to the quay side by truck.
Mr Hay says three revolvers are now in operation worldwide. “CBH is particularly useful for smaller terminals where volumes don’t justify investment in a grain specific elevator, or where there isn’t space or finance available for storage, or where hinterland distribution to the terminal is predominantly via truck,” he says. “It can also be used for segregation of grains, for example, when GMO crops are being handled, or when capital for investment in specialist equipment is not available.”
For a terminal already handling general cargo, Mr Hay says the switch to CBH essentially only takes ten minutes – the time it takes to change the spreader. “It then takes 15 minutes to fit the hatch-based misting system so there’s zero dust,” he adds.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Port Strategy
