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MARCH/APRIL 2012

Phase VI for RBCT?


Exxaro Resources has revealed that the shareholders in Richards Bay Coal Terminal (RBCT) are considering further expansion of South Africas main coal terminal. The Phase V expansion of the terminal boosted annual handling capacity to 91 mt but the lack of rail capacity on the railway from the Mpumalanga mines to RBCT has prevented exports from exceeding 65 mtpa. However, rail operator Transnet Freight Rail (TFR) has announced major new infrastructural investment and performance on the railway has improved in recent months. The terminal exported 6.09 mt in February, which would give an annualised rate of exports of 73 mt. Exxaros executive general manager of coal, Mxolisi Mgojo, commented: The pressure is back on us as RBCT shareholders to say, beyond 91 million tonnes what can we do? We need to get to at least 100 million tonnes. Unlike on the Phase V expansion project, the RBCT shareholders which include the countrys biggest coal mining companies will probably not invest in new capacity until TFR has begun the development of a planned new railway through Swaziland and the purchase of new rolling stock. It remains to be seen whether new rail capacity will be developed from the emerging second centre of South African coal production, the Waterberg Basin, in the north of the country. The Basin has been largely untapped to date because of the lack of convenient rail access but declining production in the Mpumalanga mines has persuaded investors to look to Waterberg. The big question, however, is whether the new mines will export coal via RBCT or Matola Coal Terminal in Mozambique.

European market CONTENTS surveillance initiative NEWS


A new initiative aimed at preventing non-compliant and potentially unsafe machinery, including handling equipment, entering the European market, was launched recently in Brussels at a conference hosted by the European Commission. Chairing a discussion on 'Market surveillance to protect innovation,' John Meale, managing director of mobile yard ramp and dock loader specialist Thorworld Industries, stated: We are all familiar with the concept of illegal consumer goods that do not comply with regulations, and we are aware of the hard work done by the authorities to prevent such products from being sold. But why, if there is such robust market surveillance for consumer goods, is there not a corresponding level of protection for commercial equipment and machinery?" Too often, market surveillance for materials handling equipment is reactive rather than preventative, which means that it is then too late for reputable suppliers who have been undercut by unscrupulous manufacturers, or for the workers who face injury or even death," Meale said. There is also a major problem of job losses within the European community as a result of non-conforming products reaching the European market place, which are produced to much lower standards outside of Europe and hence are much cheaper to produce. If this situation is not addressed then many additional jobs will be lost in Europe. Market Surveillance is a partnership between seven major European trade organisations, representing the construction, machine tools, weighing, agricultural machinery, plastics and rubber machinery industries, as well as Orgalime, the European Engineering Industries Association, and FEM, the European Materials Handling Federation, whose membership includes crane and lift truck OEMs, and bulk conveyor and stockyard handling equipment suppliers. The conference was attended also by customs officials, EU commissioners and MEPs and staff from a number of national standards organisations. Concerns about good currency being driven out by the bad have been growing. Trelleborg Marine Systems, for example, has been vociferous in its condemnation of sub-standard fendering systems being selected purely on price grounds, compromising efficiency and safety. Exxaro moves into Congo A step forward for Guinea? New Oz ports closer Wagons roll for CBH ITALY REVIEW
A grain of hope for Pagnam 6

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CHINA REVIEW New trade platform Energy transformation 7 8

SOUTHERN AFRICA REVIEW

Demag Cranes centralises bulk materials handling activities


brand in this rapidly expanding market. Dry bulk is the largest seaborne commodity, driven by increasing demand for energy and food, resulting from continuing growth in global population, says Giuseppe Di Lisa, senior vice president, port & intermodal cranes. Our Dry Bulk Competence Centre will help terminals to master the challenges triggered by this growth, quickly and sustainably.

Broadening the appeal CARGO HANDLING

Bulking up Roll out the rubber carpet Driving front end loaders M&A increase optimism COMMODITY FOCUS Coal

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Demag's Dry Bulk Competence Centre serves bulk terminals looking to expand or upgrade their facilities

efcient

Demag Cranes has established an International Dry Bulk Competence Centre in the UK, further expanding its activities in this sector. The centre is located in Banbury and offers customers a complete bulk-handling product family, ranging from mobile harbour cranes, portal harbour cranes and floating cranes to hoppers, conveyors, grabs and drive components. The centre also provides customers with state-of-theart software tailored to bulk handling applications, expert consultancy services and service packages provided by qualified professionals. The International Dry Bulk Competence Centre is headed by Mark Reardon and serves

bulk terminals seeking to expand or upgrade their facilities or material flows. Many terminals are currently sourcing equipment from a disparate range of suppliers, configuring their own systems using different elements, explains Reardon. Under the name of our leading brand, Gottwald Port Technology, together with our software specialist subsidiary, DBIS, and a proven network of partners, we are ideally placed to provide optimum solutions from a single source. The Competence Centre demonstrates a major commitment by Demag Cranes in the development of its long-term bulk handling strategy, positioning Gottwald as a leading

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News

Qingdao eyes 2012 start for 400,000t ore terminal


Chinas Qingdao Port Group (QPG) expects to start operations at its 400,000t iron ore terminal at Dongjiakou port this year. But according to the groups chairman Chang Dechuan, the company has not been approached by Vale regarding access for the Brazilian miners giant vessels. The terminal, which has a length of 510m and annual capacity of 1.6 mt, is specifically designed to handle 400,000 dwt ore carriers. However, the governments unease with giant vessels has meant that its nominal capacity approved by Chinas National Development and Reform Commission is only 300,000 dwt. QPG said it has invested 3.8B yuan (US$602M) in the terminal and another smaller one capable of handling 200,000 dwt vessels at Dongjiakou. When completed, the Dongjiakou terminal will have a capacity of 40 mtpa and will be the first Chinese port with the technical capacity to receive Vales huge dry bulk ships, known as Valemaxes. Other major ports which have the potential to handle Valemaxes include Dalian, which earlier said it had upgraded facilities at its 300,000t iron ore berth to meet the requirements for large-sized vessels to dock as well as the needs for transhipment. However, Chang said Vale had not approached the company regarding access for its 400,000 dwt iron ore carriers. In January, China banned its ports from receiving big vessels that exceed their approved capacity, effectively barring Vale from sending any more Valemaxes to its biggest iron ore customer. The move came after heavy lobbying from Chinese shipowners worried that Vales fleet of ultralarge carriers would bring fierce competition in alreadyweak markets. QPG plans to invest 30B yuan (US$4.76B) in Dongjiakou port between 2011-2015 to tap growing demand for coal, oil and iron ore. It aims to increase its total throughput to 400 mt this year from 370 mt in 2011, including a 130 mt capacity for iron ore, marking a 30% increase from last year, Chang said.

Exxaro moves Renold Couplings prevent into Congo costly plant breakdowns
Exxaro Resources has taken 86% equity in Australian firm African Iron, which holds two iron ore concessions in CongoBrazzaville. The South African firm secured the stake after buying out the 20.5% share held by Equatorial Resources, which will continue to control an adjacent concession. African Iron aims to export 5 mtpa from the Mayoko project next year and predicts output of up to 40 mtpa in the longer term. Exxaro must now decide how to fund construction of a 20 km spur railway to the mine, the required rolling stock and a new iron ore terminal at Pointe Noire. Congo-Brazzaville and neighbouring states are emerging as a major new iron ore frontier but Central Africas transport infrastructure must be upgraded to cope with increased demand.

Features of the HTB-GS excavator coupling include severe shock load protection properties

When a large equipment manufacturer needed a longterm solution to protect against costly coupling failure on its excavators, it turned to Renold Hi-Tec Couplings of Halifax, England. According to Renold, the excavator company had been using rubber-in-shear couplings which were failing after 4000 hours of operation. Each time a coupling failed, the excavator had to be stripped down and the coupling replaced. This was proving costly as the excavator runs 24 hours a day, seven days a week and any unplanned downtime means that the cost per tonnage of material excavated increases.

The coupling is fitted between the diesel engine and the gearbox, which has three outputs which drive three hydraulic pumps that in turn drive all the motions on the excavator. As these excavators are used on demanding applications, good coupling life is very important. Renold therefore recommended the HTBGS rubber-in-compression coupling. Its intrinsically fail safe, maintenance free and severe shock load protection properties, coupled with its high temperature capability of 200-deg C, made it the ideal choice, said Renold.

TUF to relieve Santos bottlenecks


Congestion at the Port of Santos could be substantially relieved within the next three years following the expansion of Terminal Martimo da Ultrafrtil (TUF), owned by CVRD (Vale). According to TUFs managing director Ricardo Buteri, the environmental impact assessment should allow work to be concluded by the second half of 2014. The environmental licence should, if everything goes according to plan, be issued in April, with the available area handed over in September. Work on converting this will commence by the end of the year. The expansion will enlarge TUF from 185,000 m2 to 800,000 m2. Buteri stresses that one of the most important aspects of the project will be the rail link, which will transport mainly sugar and ethanol. Road haulage will be limited to the transport of imported fertiliser. The expectation is that rail will be used for all export agribulk. Road will continue to handle fertiliser, given the short distance [around 7 km] between the terminal and the factory facilities at Plo de Cubato. To avoid trucks clogging the roads as demand for fertiliser rises, a parking area will be provided within the terminal itself, thus allowing flow of traffic on the main Piaaguera-Guaruj highway to remain unimpeded. Fertiliser volume is forecast to more than double in the medium term, from 2.5 mtpa to almost 6 mtpa. Export consignments will use the existing rail link between the port of Santos and the states of So Paulo and Minas Gerais. The acquisition of 148 new locomotives and 2680 wagons at a cost of US$700M will be the biggest outlay involved in the project, with Ferrovia Centro-Atlntica being the rail service provider. To accommodate this increase in block trains, a further 10,600m of track will be laid within the terminal itself. The intention is to integrate everything from the producer to the port, commented Buteri. The number of berths in the terminal will increase from one to three, with one of the two new installations being given over wholly to dry bulk, thereby relieving pressure on existing facilities at Santos, which Buteri says are unable to upgrade their own installations. CVRD will also undertake maintenance dredging of the Piaaguera Canal to return it to a depth of 12m, which is regarded as being sufficient for the moment, although the terminal does not rule out deepening this to 15m if traffic requires it. This would be the same depth as in the navigation channel leading to the port of Santos.

BMI March/April 2012

News
One step forward for Guinea?
The delayed Guinean general election will now be held on 8 July, hopefully heralding the introduction of a civilian government and the settlement of iron ore, bauxite and rail projects in the country. International financial organisations, donors and mining companies have been reluctant to invest in the country because of the lack of a stable government but the European Union and other organisations have indicated that they will resume full co-operation with the country if free and fair polls are held. Guinea is already the worlds biggest bauxite exporter and possesses vast, largely untapped iron ore reserves. Even during the height of political uncertainty after the fall of the countrys long governing military junta, Guineas bauxite exports managed to increase by 9% last year to 17.59 mt. Alumina exports from RUSALs Friguia refinery increased by 3% to 631,000t but this was less than expected. A spokesperson for the finance ministry explained: The reason for the [slower growth] in the alumina sector is the many production outages at Friguia and also the declining demand for this product on the international market. However, government threats to withdraw mining licences continue to unnerve investors. Speaking at the Mining Indaba conference in Cape Town in February, the Guinean minister of mines Mohamed Lamine Fofana said that his country was not securing the benefit from its natural resources that it deserved. The government is also considering reducing newly imposed taxes on mining production.

Russia increases grain export forecast


Russia has increased its grain export forecast for this marketing year (1 July 2011 1 July 2012) from 25 mtpa to 28 mtpa. The countrys agriculture ministry has changed its export forecast in view of the improved harvest expected, 94 mtpa instead of the forecast of 90-92 mtpa, said agriculture minister Yelena Skrynnik. In late February this year Skrynnik stated that Russias grain exports had reached 20 mt since 1 July 2011. Speaking about future plans for the countrys grain exports, she declared her countrys readiness to expand its annual export volume to 40 mtpa by 2020. However, the forecast of 28 mtpa is seen as a drop in exports by some Russian media, who cite sources in the agriculture ministry as saying that the grain export forecast for this marketing year was initially set at 30 mtpa. According to these media sources, the reality is such that grain reserves close to the seaports have been virtually exhausted. As a result,

grain cost around US$246/t at Novorossiysk, US$232/t at Krasnodar and US$203/t at Stavropol in late February 2012. At the same time, it took more than US$100 (or roughly half its FOB price) to export a tonne of Siberian grain via Novorossiysk. The situation was aggravated by the ongoing strengthening of the rouble and weakening of Russias position in its traditional markets, such as Egypt. Private traders of the Russian Grain Union are said by its president

Arkadiy Zlochevsky to be determined to export 1 mt of grain to the Asia-Pacific markets (APM) this season and so keep within the bounds forecast by the Union at the very beginning of the marketing year. Russias grain exports to APM in 2010 were interrupted from August for about ten months by the Russian governments grain export embargo. According to Zlochevsky, Russia could potentially be able to export up to 5 mtpa of grain to APM, upon the due development of the Fast East export corridor.

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Maputo rejects Zambezi plan


The government of Mozambique has blocked plans to use the River Zambezi for coal transport on environmental grounds, in the short term at least. Coal production in northwestern Tete Province is expected to increase from virtually nothing to up to 100 mtpa within a decade. The Sena railway from Tete to the port of Beira has been upgraded but is unlikely to provide sufficient transport capacity to carry coal from all of the planned mining projects to the coast for export. Other transport corridors will therefore be required and Rio Tinto had carried out a feasibility study into using barges on the River Zambezi. However, the deputy environment minister, Abdul Razak, announced in early March: For now, according to the information passed on by Micoa [the ministry of the environment], it is not possible to use the river to export coal. It is because of the ecosystem: more studies need to be done. A range of rare flora and fauna live in the river system, particularly in the Zambezi Delta. In addition, the government argues that dredging the river would exacerbate flooding problems. Transport minister Paulo Zucula told journalists: We can assure everybody that we will build enough rail capacity to carry their coalBy the end of this year we will reach 10 million tonnes of capacity on the Sena line; next year we will start rehabilitating Nacala and build two new railways. Coal is a development project for us, so we are a most interested party.
BMI March/April 2012

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News

Schade Lagertechnik is scheduled to deliver a portal scraper for chrome ore to JSC TNK Kazchrome in 1Q 2012. The system has a rail track length of 48m and conveying capacity of 500t/h and will be used in Aktobe near the Russian border, in north-west Kazakhstan. Kazchrome is part of the ENRC Group and is a major ferrochrome producer, operating several large ferrochrome plants in Kazakhstan. The new portal scraper spans the stockpiled ore and travels back and forth longitudinally over the stockpile. In this instance, and owing to the abrasivity of the material, Schade is employing a scraper chain furnished with a wing roller, the bearing being arranged directly on the shaft. The latter was especially developed for highly abrasive bulk materials.

Schade Lagertechnik Algoma to supply portal choses scraper to Kazakhstan Wrtsil


The drag link conveyor chain will be used in particular where chain lubrication is not permitted. It is furnished with hardened bolts and bushings which keep the wear factor at a low level. Each link of the bushed chain is additionally equipped with bearings and wing rollers which run in the chain guide. The rollers are furnished with bearings and special seals. An automatic chain tensioning device also ensures a low maintenance requirement. The portal scraper transports the bulk material away in layers from the side slope and guides it over a concrete ramp onto a belt conveyor which is arranged longitudinally adjacent to the stockpile. Reclamation takes place automatically, with the cutting and grading of the stockpile to be usually performed manually by the operators in Aktobe.
ISSN 0955-3754 ISSUE NO:135

Chinese steel makers eye overseas investments


The high price of imported iron ore and Chinas sluggish steel market will prompt domestic companies to invest heavily in overseas mining operations, according to a senior official with the China Iron and Steel Association. It is estimated that Chinese-invested overseas sources will bring in 100 mt to 200 mt of iron ore annually in the coming three to five years, said association chairman Zhu Jimin. He said an over-reliance on high-priced imports of the mineral is squeezing profits at Chinese steel mills, piling further pressure on an industry thats already experiencing a decline in domestic demand. In 2011, China imported 686 mt of iron ore, equal to 60% of the domestic steel industrys consumption during the year. The majority of the imports came from Australia, Brazil and India. China is the worlds largest steel maker and the biggest consumer of iron ore, but Chinese companies currently own less than 10% of the imported ore, said Li Xinchuang, deputy secretary-general of the association. The heavy dependence on overseas supplies has made life tough for Chinas steel makers, who saw the industrys average profit margin reduced to less than 3% in 2011. Meanwhile, India, the worlds third-largest supplier of iron ore, raised its export duty on the mineral at the end of 2011, a move that was copied by Vietnam in February. Australia, the largest overseas provider of iron ore to China, shipping 297 mt in 2011, will also introduce its Minerals Resources Rent Tax on 1 July. Thats likely to drive the price of iron ore imports higher in the coming years as producers pass on the extra costs to purchasers. The high prices set by overseas suppliers will push more Chinese companies to invest overseas in the hope of relieving the pressures of shrinking profit margins, Zhu said. Zhu, who is also chairman of Shougang Corp, one of the largest steel companies in China, said the company will invest heavily in overseas mining operations to improve its self-sufficiency in iron ore. He said 25% of the iron ore used by the company in 2011 was produced through its overseas investment. That figure is set to increase to 60% by 2015.

scrubbers

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Bulk Materials International/ISSN 0955-3754 is published bi-monthly for US$265 per year by WCN Publishing. Entire contents WCN Publishing 2012

Algoma Central Corporation, which owns and operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, is to install fresh water, exhaust gas scrubbers on six new vessels that will remove 97% of sulphur oxides emissions generated by vessel engines. The St. Catharines, Ontario-based company has signed a contract with Wrtsil Ship Power for the supply of the systems for its Equinox Class vessels, which are currently being built by Chinese shipbuilder Nantong Mingde Heavy Industry Co. Ltd. The total supply and installation cost of the six scrubber systems is US$12M. The two gearless bulk carriers and four self-unloading bulk carriers are designed specifically for Great Lakes service. These ships have been designed with high efficiency hulls that will require less horsepower to achieve higher speeds than any previous Great Lakes design and thus achieve the lowest fuel consumption and emissions per tonne/kilometre of cargo carried. The first Equinox Class vessel will arrive in Canada in the first half of 2013. The Algoma order is the first for Wrtsils new, integrated, fresh water, exhaust gas scrubber design. The scrubbers are designed to clean the exhaust gases of the vessels main and auxiliary engines as well as the oil-fired boiler and will meet more stringent environmental regulations taking effect over the next three years. These scrubber systems will allow shipowners to use lower cost, heavy fuel oils while, at the same time, meet the new Emission Control Area sulphur limits established by the International Maritime Organisation (IMO) and adopted by Canada and the United States for the Great Lakes and coastal waters. Without scrubber technology, shipowners will be forced to convert vessels to burn more expensive diesel oil. The installation of scrubber units on our Equinox Class vessels fits with our stated strategic objective of improving the efficiency of our fleet while at the same time reducing our environmental footprint says Greg Wight, president and CEO, Algoma Central Corporation. These are truly important vessels as they will set new standards for environmentally sustainable shipping on the Great Lakes and for cargo vessels in general, said Juhani Hupli, vice president, ship power technology at Wrtsil Ship Power.

Lomar orders new Ultramax vessels from Chinas COSCO


Lomar Corporation, a subsidiary of the Libra Group, has signed an order with Chinas COSCO Group for up to six Ultramax bulk carriers. Scheduled for delivery starting from early 2014, the Dolphin 64,000 dwt vessels have been designed by leading Chinese design institute SDARI (Shanghai Merchant Ship Design and Research Institute) and meet the highest standards for fuel efficiency and environmental compliance, including the latest IACS Common Structural Rules (CSR). These new vessels are the latest in design and efficiency, said Achim Boehme, CEO of Lomar. They complement our existing bulk carrier portfolio and allow us to stay competitive in the dry bulk markets. Our substantial investment demonstrates real commitment to operating a modern, fuel-efficient fleet. Lomar says that the investment restates its dedication to the dry bulk sector with re-

The fuel-efficient design of the new 64,000 dwt vessels means that they will consume around 13% less fuel than conventional Supramaxes

newals and additions to the fleet which can carry a wide range of bulk cargoes and benefit from the latest eco-friendly, fuel-efficient designs. The order takes Lomars current fleet to over 40 vessels. The new Ultramax bulk carriers have been designed to carry up to 11% more cargo than conventional Supramaxes while consuming around 13% less fuel.

Lomar already has a longstanding relationship with COSCO Group for ship repair and dry docking works and looks forward to working with the group on newbuildings. Between 2004 and 2007 Lomar sold 69 vessels, re-entering the market in 2009 with the US$325M acquisition of Allocean and its entire fleet of 26 ships. A$10M will be allocated to the construction of a new commercial fishing harbour near the Thevenard Slipway at Bosenquet Bay. The new facility will eliminate overcrowding at the existing port, which handled over 3 mt of gypsum, mineral sands, salt, seeds and grains exports and fertiliser imports in 2010-11. In Queensland, engineering company John Holland has won a A$220M contract to build the first stage of stockyard works for the Wiggins Island Coal Export Terminal. Stage 1 of the coal industryowned WICET has a contracted annual coal throughput export capacity of 27 mt.
BMI March/April 2012

New Oz ports closer


The Spencer Gulf Port Links proposal for a large new bulk commodities export facility at Port Bonython has taken a step forward after the South Australian Government granted major project status. Port Bonython is planned as a Capesize-capable facility, featuring a 3 km jetty reaching into deep water. The shiploader will be served by fully enclosed conveyors. SGPL says the final design is dependent on a range of issues, including geotechnical conditions, environmental controls, a wide range of approvals, and financing. Planned initial capacity is 20 mtpa of iron ore, with first loading in 2015. Eventual throughput, driven by development of a number of proposed mining ventures, could reach 60 mtpa through incremental expansion. South Australia had earlier granted major project status to another development chasing iron ore trade, Centrexs Port Spencer proposal. The government has moved to relieve pressure at another SA bulk port, Thevenard, on the states far west coast near Ceduna. Joint state/federal funding of over

News

Qube mines Oz port logistics chain


The Chris Corrigan-led Qube Logistics has expanded further into the Australian mine-to-port logistics sector with the acquisition of Western Australia-based Giacci Holdings for around A$119M. From Bunbury Giacci has expanded operations throughout Western Australia, South Australia, Queensland and the Northern Territory and now employs 350 people across ten strategic sites that include 22,000 square metres of mineral storage sheds. Qube said Giacci, whose MD and co-owner Peter Giacci has agreed to stay with the company for at least two years, had built its core business in the mining industry, specifically in mineral haulage and handling, providing mine to port solutions for the majority of its customers and in most instances, assuming full responsibility for the supply chain. It operates a fleet of bulk handling equipment, with key strategic partnerships and joint ventures incorporating shipping and rail, managing in excess of 17 mtpa of bulk products. Qube will fund the acquisition through the issue of A$20M of new Qube shares to the vendor at an issue price of A$1.4749 per share with the balance of the purchase price funded from Qubes available cash and debt facilities. The acquisition will be completed during March 2012 and the business will form part of Qubes Ports & Bulk division. MD Maurice James said the acquisition would enable Qube to provide a complete mine-to-port logistics solution covering transport, stockpile management and stevedoring. The enhanced logistics capability should provide significant opportunities to expand the range of services offered by the Qube group, James said. In its first result after conversion to a conventional corporate structure, on 1 March Qube reported a 37% increase in operating review and a 45% increase in profit after tax. Among other milestones Qube noted that two years after it began as operator of Port Hedlands Utah Point common user bulk terminal, throughput at the facility has reached its nameplate rate of over 10 mtpa.
BMI March/April 2012

Wagons roll for CBH


Western Australias CBH Group has marked an all-time record grain harvest with the arrival of the first shipment of its new rolling stock and factory roll-out of its first new locomotive. A pre-harvest forecast of 13.5 mt was well and truly exceeded when a truckload of wheat delivered to CBH Groups Pingrup receival site in the Albany zone in early February pushed total grain receivals in WA past 15 mt for the first time in history. A month earlier statewide production surpassed the previous record set in 200304 of 14,695,321 mt. CBH then went on to break the record for the most amount of grain shipped in the month of February with more than 1.29 mt departing Western Australian ports for international markets. The previous record of 1.174 mt was set in 2004. Februarys shipments took the total exported since 1 November 2011 to 4.18 mt. On 9 February the Oldendorff-operated multipurpose ship PACIFIC FIGHTER arrived at Kwinana to discharge the first 50 of a total order of 574 aluminium-bodied grain wagons, loaded in the port of Lianyungang in northeastern China. CBH ordered 446 standard gauge and 128 narrow gauge wagons from Australian company Bradken, which is building the stock at its Xuzhou factory. CBH GM Operations Colin Tutt said this was a milestone for the CBH Group and a sign 2012 was the year rail would be revitalised in WA. The lightweight aluminium body allows us to load more grain into each wagon, around 10t per wagon more capacity than the current steel wagons. This of course means more tonnes to port per train movement and a more efficient rail system for everyone. The wagons are also incredibly safer than the ones we use currently; there will be significantly less direct interaction with wagons with the installation of auto hatch and discharge doors as well as scanning technology, Tutt said. Subsequently at the end of February the first of 22 new 2700hp and 3200hp locomotives came off the production line in Boise, Idaho in the United States and is expected to arrive in WA in mid-May. CBH is investing a total of A$175M in the new wagons and locomotives.

New cement import terminal opens in Malm


Cementa ABs new cement import terminal at Swedens Malm Northern Harbour has been officially inaugurated. IBAU Hamburg completed the EPC-contract, including piling works, civil works, steel structure supply and erection as well as electrical and mechanical supply and erection. The Cementa-owned ships can discharge at the terminal at a rate of up to 1,000 t/h. The cement is fed to the multicompartment storage silo which has a height of 90m, a diameter of 26m, six chambers and a capacity of 30,000t. Distribution takes place via three combined truck/wagon loading lanes, each with a capacity of 250 t/h. The terminal can be op-

The storage silo has a capacity of 30,000t

erated automatically 365 days/year and 24 hrs/day. Cementa AB is part of the HeidelbergCement group of companies.

Mariupol continues upgrade


The Ukrainian port of Mariupol (MMTP), the gateway to the Donetsk coal basin on the Sea of Azov, is forging ahead with its improvement project. Last year it announced that it had invested around US$8M to replenish its handling facilities and machinery. In the course of the year, the port acquired a total of 16 forklift trucks, including seven with a 5t lifting capacity, three 16 tlc models manufactured by Yale, one 25 tlc and one 28 tlc made by Kalmar, and two 32 tlc and two 37 tlc produced by SMV. It bought three wheel loaders each with a bucket capacity of 2.5 m3 and two bulldozers from Liebherr and purchased an Aichi wheeled boom lift. Finally, MMTP replenished its motor pool with 11 lorries including a fire truck. In 2012, the port is planning to buy a Ukrainian-made Mark 362 portal crane, 16 more forklifts, two marine tractors, three roll trailers, an empty container handler, a telehandler and a tractor with removable equipment. As far as the ports berthing structures are concerned, MMTP recently postponed completion of the reconstruction of its berth No. 8 (bulk cargoes) from the end of 2012 to the end of 2013. Work started last year and will include deepening of the depth alongside the 226mlong berth to 9.75m in order to increase its handling capacity to 1 mtpa. MMTP is one of the five biggest harbours in Ukraine and features the countrys largest dedicated coal terminal which has a handling capacity of up to 5 mtpa. Apart from domestically-produced coal, the port handles Russian coal too.
5

Area Focus: Italy

Allibo offers a grain of hope for Pagnam


Pagnam, the distressed company specialising in shipping grain and other agri-bulks by barge from Chioggia (near Venice) on the Po navigation system to various destinations in the Pianura Padana, could yet acquire a buyer and remain a going concern. U.S.-based multinational grain trader Cargill, which acquired Pagnam in 2006, recently stated that the Italian company would cease trading as it was not economically viable.However, a mixed public/ prviate enterprise, Allibo Adriatica SpA, based in Rovigo and with a capital base of 0.7M, has been formed to take over Pagnams activities.

Clear interest
Allibos shareholders are all companies or public sector bodies with an clear interest in Pagnams survival: Ship Service Srl of Venice, with 24.5%; tug operator Cam Rimorche Srl (14%); the tug company Rimorchiatori Panfido di Venezia Srl (14%); the Venice Chamber of Com-

merce (10.5%); Chioggia Shipyard (10.5%); Interporto di Rovigo (10.5%); flour shipper Grandi Molini Italiani SpA (5%); Viglienzone Adriatica SpA (5%); New Port Menela Srl (3%); and Veronesi Holding SpA (3%). Our objective is to take over from Cargill Srl all its assets in the Port of Chioggia, specifically the lightering of seagoing bulk vessels and simultaneous transhipment to barges bound for Porto Marghera (Venice) and inland ports on the Po navigation

system, Rovigo Interporto, Mantova and Cremona, said Allibo. A key target is ROMANO P, a 100m long, 20m wide transhipper equipped with a Sobemai balance crane and specifically designed for lightering operations in the Venice Lagoon. Capacity is up to 15,000 tpd (1200 tph) and the annual service capability is equivalent to 15,000-18,000 truck loads.

Coal boost
Elsewhere in Italy, coal industry as-

The official event of:

5154N 0829W

sociation Assocarboni has called for the country to boost its use of coal. The solid fuel has just a 12% share of the energy mix, compared to the European average of 33%. Speaking at the recent Assocarboni National Congress in Rome, Andrea Clavarino, the associations chairman, urged the government to address the countrys need for a new national energy strategy, saying it was a key driver for the countrys economic revival. Italy is the only country in the world to depend on natural gas for more than 60% of its electricity production, Clavarino said. With no nuclear power and renewable energy still being too expensive it will cost Italian taxpayers 9 billion in incentives per annum the situation is clearly unsustainable as it undermines the competitiveness of the Italian manufacturing industry, which in Europe is second only to that of Germany, he warned. Last year, Italy imported 17 mt of steam coal, in line with 2010, and 7 mt of coking coal and PCI, up 27% over previous year. Petroleum coke consumption, used in the cement industry, was in line with 2010 figure (2.3 mt) according to Assocarboni data.

Planned CCT
In the last few years Italian coal operators have shown an extraordinary ability to focus on innovation and fostered significant investments in new clean coal technologies, enabling the environmentally sustainable use of coal, said Clavarino. He said that this was evident in planned projects worth 5.5B, relating to new coal plants and units equipped with cutting edge clean coal technologies able to enhance efficiencies by up to 46%. The projects include the state-ofthe-art SEI project in Saline Joniche (1,320 MW), the oil to coal conversion of ENEL plant in Porto Tolle (1,908 MW) with installation of CCS technology and the requalification of the Tirreno power plant in Vado Ligure with the construction of a new high-efficiency coal unit (460 MW). These are all good reasons to boost the role of coal in the national energy mix, Clavarino said.

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Following the commissioning of ORE FABRICA for Vale, Logmarin has commissioned a second new transhipment lighter vessel, FC BLITZ, for Indonesian shipping line PT MBSS. Flying the Indonesian flag, the 4490 grt, 91m-long floating terminal was built by Keppel Shipyard in Subic Bay and is classed by RINA. The vessel will operate alongside PRINCESSE CHLOE , a previously-delivered Logmarin floating transhipment terminal, off the east coast of Kalimantan, handling coal. The vessel is equipped with two Liebherr fixed pedestal cranes and can work colliers up to Capesize at 25,000 tpd. BMI March/April 2012

Area Focus: China

Iron ore trade platform will improve price transparency


China is hoping that its first iron ore spot trading platform will help the nation gain more influence in global pricing. It is the worlds largest user and importer of the commodity. The China Beijing International Mining Exchange (CBMX) launched the online platform in January together with the China Iron & Steel Association (CISA) and the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters. The iron ore market should be determined by and reflect real supply and demand. However, monopoly practices and price manipulation have exerted a big impact on prices, said Wang Xiaoqi, vicechairman of CISA. According to CBMX, Chinas major steel companies - including Baosteel Group Corporation, Hebei Iron & Steel Group, Wuhan Iron and Steel Group, Shougang Group, Angang Steel Co and China National Minerals Co - have agreed to become members of the new platform. To avoid speculation, financial organisations and banks arent allowed to participate in the platform, CMBX president Dong Chaobin said.

Greater accuracy
Dong said shareholders of the platform are the China Beijing Equity

Exchange, Aluminum Corporation of China and China Everbright Group. The price index is based on actual transactions at domestic and foreign ports, which Dong suggested was fairer and more accurate than other methods of calculation. The online platform posts prices of completed trades online without

identifying either the buyer or the seller, a move meant to improve the accuracy and reliability of price statistics. Liang Ruodong, vice-president of the exchange, said many overseas steelmakers had shown an interest in the platform and might join the system. According to CISA, China imported 686 mt of iron ore in 2011, up 10.9% year-on-year.Total crude steel production in China last year was 680 mt, up 8.6%. Cast iron production was 630 mt, up 6%.

Japanese steel
According to Toshihiko Emi, direc-

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Public platform
China accounts for 60% of the global iron ore trading market. The nations iron ore sources increased from 48 countries in 2010 to 67 in 2011, and there was a marked expansion in physical transactions. Steel companies and iron ore traders from China, Japan and South Korea largely regard other widelyused iron ore indices with some scepticism as to their transparency and fairness according to Wang. It is very important to build a public platform in China to improve the development of the industry, he said. CBMX is also publishing a new iron ore pricing index in an attempt to better reflect supply and demand, as well as reduce price volatility. The GlobalOre trading exchange, backed by the mining giant BHP Billiton and based in Singapore, will face a threat from the new Chinese platform. According to one Chinese trader, many big domestic iron ore suppliers and steel producers have stopped trading on GlobalOne or halted moves to join it.
China is increasingly investing in overseas mines in a move to guarantee supply of the commodities it needs for its continued growth and development
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Area Focus: China


tor of the Institute of Research of Iron and Steel (Shasteel), Chinese steel companies are rapidly catching up with their Japanese counterparts in manufacturing high-quality products. The difference between the two steel industries is narrowing month by month, said Emi, who also acts as assistant to the chairman of Chinas Jiangsu Shagang Group. The Japanese steel industry has a longer history and better technology than its Chinese counterpart, but Emi said China now has some advantages in development. The major Japanese steel companies suffered a loss last year because of the rising value of the Yen, tripled labour costs and rising prices for raw materials, he said. But China, because of its high import levels, can buy iron ore and coal at relatively lower prices with a discount.

Chinas energy base seeks transformation


China imported 686 mt of iron ore in 2011, an increase of 10.9% year-on-year

Investment overseas
To support domestic production, China also has been seeking to invest in mines in countries such as Australia, Canada and several in Africa. Last year, the China Iron and Steel Association forecast that China would need to import half of its iron ore needs by 2015. A large percentage would be sourced from West and Central Africa, it said. In addition, China has a steadily growing domestic market for steel products, while the Japanese steel industry depends highly on exports, which adds to its difficulties in sales, he said. Iron ore prices have been increasing and steel prices have been falling in recent months, resulting in big losses for many Chinese steel companies. But Emi believes this is due to the depressed international market and will not continue for long.

EU investigation
In addition to falling steel prices there is another cause for concern for Chinas steel industry. At a time when the

European Union has begun an anti-subsidy investigation into Chinas exports of steel products, Chinese companies are having to contend with an oversupply of such products in their domestic market. Analysts say that many Chinese companies have come to depend on overseas sales and therefore are at risk of being harmed by the trade dispute. In February, the EU officially began investigating whether Chinese makers of organic coated steel,used mainly in home appliances, construction materials and heating equipment, had received government subsidies. To protect European producers, the organisation threatened to impose tariffs on Chinese imports of the metal. Europe is the main export destination for Chinese producers of organic coated steel, which would be vulnerable to harm if Europe decided to take tough actions against Chinese manufacturers, said Xu Xiangchun, senior analyst at Mysteel.com, a steel industry website and consultancy. He said Chinas exports of this kind of steel to Europe have grown quickly in the past three years, pushed both by an increase in the countrys production capacity and an oversupply in the market. According to China Iron and Steel Association statistics, China produced 5.54 mt of organic coated steel in 2010, of which 3.05 mt were

for export.In the first ten months of 2011, the country exported 4.56 mt of organic coated steel, 49.5% more than the total amount for the previous year.

Too early
Xu said it was too early to estimate how badly Chinese producers will be harmed if the punitive tariffs are imposed, adding that China should avoid becoming too dependent on overseas markets. He said the China Iron and Steel Association is helping the steel companies that will be affected by the EUs inves-

tigation prepare for the approaching legal process. Chen Xinmiao, another industry analyst, said that if the EU imposes tariffs on Chinese exports of the steel, Chinese companies must seek out new markets for the product. Meanwhile, the economic growth that is occurring in Southeast Asia is not likely to proceed quickly enough to give rise to the demand needed to soak up Chinas oversupply of organic coated steel in the short term. The EU therefore remains an indispensable market for Chinese producers.

Coal-rich Inner Mongolia in northern China is seeking to process some of its vast reserves of coal into diesel or electricity to add value to the resources and assist with the pressing issue of environmental protection in the region. The resources will dry up one day no matter how many we have now, said Hu Chunhua, Communist Party chief of Inner Mongolia. We must find ways to free ourselves from the reliance on resources for our sustainable development. Inner Mongolia, with estimated 700 bt of coal reserves, is Chinas burgeoning coal base, producing more than one quarter of the countrys coal output.

added economic and industrial chain that is composed of its advantageous resources including coal, iron and steel, and polysilicon, said Liang. The development of its coal sector will be a strategic measure to ensure the countrys energy security, he said. It is thought that foreign investment in Mongolias mining sector will be encouraged in a move to increase coal production and availability and improve mine efficiency. In 2011, Chinas net coal imports reached a record 160 mt. Improved availability of Mongolian coal would help China reduce its reliance on imports.

Transport challenges
In 2011, over 60% of its 1 bt of coal production was transported over land to energythirsty areas like northeastern and central China. The difficult task of moving coal out of Inner Mongolia has posed a challenge for land transportation. In September 2010, the Beijing-Tibet highway experienced traffic jams of up to 100km as the road was clogged by huge numbers of coal-hauling vehicles. It is inefficient to transport coal to all over the country with diesel-driven trucks. So we must convert the coal to high-efficiency energy forms before sending it out, said Liang Tiecheng, director of the Inner Mongolia Development and Reform Commission. The government has decided to develop Inner Mongolia into an energy base and a new-type chemical industry base so as to give full play to its advantages in coal and non-ferrous metals and realise the transformation of its low-efficiency resources to more efficient forms like diesel or electricity locally.

Mine overhaul
But growing interest in Mongolian coal has resulted in illegal mines being set up. In an attempt to improve work conditions and safety as well as the environmental impact of the mining sector, Inner Mongolia has halted 467 illegal mining projects in a region-wide overhaul. The regional land and resources bureau checked about 9,000 mining projects in the overhaul last year, halting 467 illegal projects, ordering 887 mines to suspend operations and shutting down 73. Officials said the mines were unlicensed, upset local residents or failed to properly compensate for the use of grassland. In a bid to build harmonious mines the government defused 100 disputes between local herders and mining companies last year while establishing an effective mechanism to settle disputes through dialogue, it said. Inner Mongolia ordered an overhaul of the mining sector, originally scheduled for one month but which was extended after protests against grassland mining broke out in the wake of the death of a Mongolian herder during a dispute with miners. The regional coal mine industry bureau then ordered local work safety watchdogs to strengthen supervision of coal mines to ensure safe production practices, protection of the environment, and attention to the welfare of residents. Inner Mongolia holds the countrys largest coal reserves - 770.3 bt at the end of 2011 and rich deposits of other minerals such as iron ore and rare earth metals. A mining boom in recent years has brought prosperity to the region but concerns have been raised about the ecological damage that mining might cause to a region better known for its vast grassland and unique herding culture.
BMI March/April 2012

China to approve VLOCs soon, says Vale


Brazilian miner Vale has said that it expects to win permission within months to unload its Very Large Ore Carriers (VLOCs) at Chinese ports. To date, only one VLOC, the BERGE EVEREST, has been granted permission to unload at a Chinese port. The big vessels are here to stay, this is a technical thing and we are just waiting for the ports to be adapted to receive our ships, Tito Martins, Vales chief financial officer, told Reuters. Its going to happen soon. As previously reported, China has been reluctant to allow the vessels to berth, accusing the miner of looking to monopolise the shipment of iron ore out of Brazil and warning that the company would practically control movement of the commodity between the two countries. Vale subsequently issued clarification that its vessels, capable of transporting 400,000t of iron ore and owned by itself or chartered, will only dock at Chinese ports in total accordance with the countrys legislation. It said that it needs the ships in order to remain competitive against Australian producers.

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New technologies
Wang Rungang, a National Peoples Congress (NPC) deputy from Inner Mongoliabased Shenhua Wuhai Coal Group, said his company carried out a coal-chemical experiment programme, enabling it to master the technologies involved in turning coal to diesel with an annual capacity of 1.2 mt. The value of diesel processed from coal is eight to 12 times that of the original material, Wang said. Liang said the new technologies are different from those used in upgrading primitive coal processing. Instead, it is an integration of multiple coal-chemical technologies to enable multilevel use of coal. Moreover, Inner Mongolia will develop a high value-

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Area Focus: Southern Africa

Broadening Southern African appeal


Until relatively recently, dry bulk transportation in Southern Africa meant just one thing: South Africa. Principally South African coal but also iron ore and, to a lesser extent, manganese. Interest in the rest of the region was limited but over the past few years Mozambique has become of increasing importance and now Botswana too is on the radar of most analysts. This year, for the first time, developments in Mozambique are perhaps of equal importance to those in South Africa, even in a year when rail operator Transnet will begin to enact some important decisions. new coal mining capacity developed in South Africa over the coming decade, compensating for falling output in some parts of Mpumalanga.

is committed to boosting transport capacity on the iron ore line from the Sishen mines to Saldanha.

Shipment boost
Demand for South African coal is rising in India and China and so the coal mining firms that own RBCT hope to maximise their output in order to take advantage of these growing overseas markets. Moreover, the South African government hopes that the various black

empowerment mining companies that have been allocated capacity at Richards Bay will be able to boost their own shipments in order to exploit higher international prices for coal. Despite severe problems on the Richards Bay rail line during the first half of the year, the South African dry bulk sector as a whole enjoyed a satisfactory year in 2011. The total volume of exports increased 6.6% to 141.49 mt for the year, of which Richards Bay handled 76 mt and

Saldanha 53.2 mt. South Africa exported 39% more manganese in 2011 than in 2010, while the coal sector recorded a small rise of 3.3% in turnover to 65.5 mt. However, iron ore exports increased by 44.3% to R62.63bn ($8.2bn) in 2011 in comparison with the previous year, while actually production rose 26% in January 2012 from the same month one year earlier. With or without sustained high international prices for iron ore, TFR

Botswanan options
Aside from South African exports, Mozambique could also handle Botswanan coal exports. Botswana lifted its moratorium on coal exploration licences at the end of January. It had been imposed to give the government time to assess is resources and introduce a new regulatory framework designed to allow only companies with sufficient experience and finance to secure mining concessions. President Ian Khama said: The

Three projects
South African state-owned firm Transnet Freight Rail (TFR) has made three long-awaited investment decisions over the past few months. Firstly, it has decided to develop its new manganese export terminal at the new port of Ngqura in the Eastern Cape rather than at the established iron ore port of Saldanha on the Atlantic coast. Ngqura was originally designed with a planned aluminium smelter as its anchor tenant but the smelter was never built and Transnet has been forced to find alternative uses for both the facility and the adjacent Coega Industrial Zone. A new transhipment container terminal has already been developed and now it will act as the countrys designated manganese port, replacing nearby Port Elizabeth, which had previously fulfilled that role. A new rail corridor will have to be developed from mines in the Northern Cape to the port. The other two projects both concern the coal sector. Although the Phase V expansion of Richards Bay Coal Terminal (RBCT) took the facilitys handling capacity up to 91 mtpa, TFR has been unable to rail more than 65 mtpa to the facility because of vandalism on the line, accidents and a general lack of capacity. Mining companies have campaigned for increased rail capacity but Transnet had previously failed to make any concrete promises unless mining companies signed long term use agreements. However, the company has now decided to develop a new railway from the traditional centre of the South African mining industry in Mpumalanga Province, through Swaziland and then into South Africas KwaZulu-Natal Province. The line should be of some use to Swaziland but will mostly be used to transport freight from one part of South Africa to another. TFR hopes that it can transfer freight from the existing Mpumalanga-RBCT line to the new railway, freeing up capacity on the coal line for additional exports. The new Transnet line through Swaziland could also be used to transport coal to Matola Coal Terminal (MCT) next to the port of Maputo in southern Mozambique. Operator Grindrod of South Africa has expanded MCTs handling capacity to 6 mt/y and is contemplating increasing this further to 20 mtpa. In January, Vitol of Switzerland agreed to buy a 35% stake in the project for US$67.7M and this should help to finance the expansion programme. In addition, a new railway from is to be developed from the Waterberg Basin in Limpopo Province to RBCT. It is expected that the Waterberg will provide much of the
BMI March/April 2012

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Area Focus: Southern Africa


recently completed study highlighted a number of areas which require immediate attention for Botswana to develop her coal resources. With these amendments to the licensing regime the moratorium imposed is lifted with immediate effect. Several mine projects are awaiting development, including CIC Energy Corporations Mmamabula combined coal and coal bed methane scheme in the southeast of the country. The Canadian company is still looking for a larger partner following the collapse of its proposed takeover by JSW Energy of India. The government believes that production of up to 90 mtpa is feasible but that remains to be proved. that is not designed for carrying large coal trains. Two new railway projects have been proposed to transport Botswanan coal to overseas markets: one to the west, to the Namibian port of Walvis Bay, which would also provide port access to smaller, untapped Namibian coal mines. The other would run eastwards to a new terminal at Techobanine in the far south of Mozambique. This could also be used to handle South African coal from the Waterberg Basin. Feasibility studies into both options are currently underway but despite Gaborones hope that both lines can be developed, only one multi-billion dollar scheme is likely to be financed for the foreseeable future. never designed to handle coal in the first place, massive investment is being made in rail, road and port infrastructure. The main investors in Tetes Moatize Basin at present are Brazilian firm Vale and Riversdale of Australia, which is now owned by Rio Tinto, but more than 100 coal mining concessions have been signed and a variety of other companies plan to start exporting coal in the medium term. In January, Ncondezi Coal signed an agreement with Rio Tinto for access to 10 mtpa of port and rail coal capacity, suggesting the latter will be directly involved in developing transport capacity. Ncondezi chief executive Graham Mascall said: Rio Tinto has significant experience in developing rail and port infrastructure projects around the world, and I believe that it is best placed to lead and implement this project in Mozambique. Coal export terminals are planned at the existing ports of Beira and Nacala, while new terminals have been proposed at the mouth of River Zambezi and at the town of Quelimane to the north. enable trade within the country or with neighbouring territories. Spur lines that could serve the export of other commodities are also to be rehabilitated. The minister of transport, Paulo Zucula, said: The government has not abandoned these railways as some people claim. They will be rebuilt with greater capacity but with modernising features and connected to the northsouth line and to the existing ports and new ports that will be built. Despite the governments earlier commitment to privatisation, it remains to be seen how much of this new infrastructure will be managed by private sector operators. In December, Maputo revoked Ricons concession to operate a railway network in central Mozambique, including the line from Tete Province to the port of Beira. The concession had been held by Companhia dos Caminhos de Ferro da Beira, in which Ricon a joint venture of state owned Indian firms Rites and Ircon International held a majority stake. The ministry of transport and communications complained that the consortium had not completed rehabilitation work according to the previously agreed timetable. The railway will now be operated by Mozambican state rail and port company, Portos e Caminhos de Ferro de Moambique (CFM), which also manages other pieces of transport infrastructure that have been brought back under state control.

Despite RBCT having a handling capacity of 91 mtpa, TFR has been unable to rail more than 65 mtpa to the facility for various reasons, including vandalism on the line

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next decade and beyond. There is no spare coal haulMaputo consistently forecasts age capacity on the South Af- From Tete to the sea that the country could evenrican rail network to cope with However, it is in Mozambique tually produce 100 mtpa, most Botswanan exports, while ex- itself that most new coal min- of which would be exported, isting rail links with South ing production is expected to and the country is currently on EU-878-Cranes 178x254_EU-878-Cranes 178x254 22.03.12 14:20 Africa use narrow gauge track be brought on stream over the Seite 1 to export 46 mtpa as course

soon as 2015, all of from Tete Province in the northwest of the country. Given that Mozambican transport infrastructure was devastated during the countrys long civil war and that it was

Nacala terminal
In February, the prime minister of Mozambique, Aires Aly, announced that the construction of a new US$4.4B coal terminal at the port of Nacala would begin within a few months. Handling capacity of 18 mtpa is expected at both the port and on the planned 912 km railway that will connect the Moatize mines with Nacala, although this is expected to be expanded in a second phase development. Sources in Mozambique suggest that Vale will develop the project, although the Japanese government has funded a feasibility study into how best to upgrade the port. Some form of support from international financial organisations is likely. The Quelimane project would have handling capacity of about 20 mtpa, the same volume planned for Beira and Nacala, and would require the construction of a new 500 km railway from the port to the mines. The site at the mouth of the Zambezi would have the advantage of being a natural deepwater harbour with direct access for Capesize vessels. There is a lack of existing infrastructure at both locations but this could be an advantage in terms of providing terminals and railways fit for purpose.

Outlook
With a total of five new coal terminals planned in Mozambique to handle Mozambican, Botswanan and South African coal much remains to be decided in the transport of dry bulk materials in Southern Africa. In an ideal world, all five would be constructed, as would both railways out of Botswana and the Mozambican rail spine project. This new infrastructure would provide plenty of options for mining firms and would also create the transport infrastructure required to assist in the further development of some of SubSaharan Africas most successful economies. In practice, however, such a grand vision cannot be imposed from above. It must be developed on a piece by piece basis, with each part of the jigsaw required to be commercially viable in its own right. In the case of Mozambiques Tete Province, at least 40 mtpa of coal rail and port handling capacity is required relatively quickly to meet the demands placed by the coal boom in the Moatize Basin. The expansion of iron ore capacity on the Sishen Railway and the construction of a manganese terminal at Ngqura may be important in their own right but the focus remains on king coal, even if it is more broadly spread across the region and is no longer concentrated in South Africa.
BMI March/April 2012

Spur lines
In order to complement all of the independent and isolated west to east railway lines, the government has announced plans for a north-south railway that would act as a spine connecting all existing lines in the country. This could enable coal from Tete to be exported from any or all of the planned coal export terminals. As in most African countries, the existing rail network was designed during the colonial era to move raw materials out of the country and not to

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10

Cargo Handling

Bulking up on mobile cranes


2011 was a good year for Liebherr mobile harbour cranes (MHCs). Sales were the second best on record, and the LHM 420 was successfully introduced as the replacement for the LHM 400. The LHM 420 slots in between the LHM 280 and the LHM 550, which replaced the LHM 500 in 2010 (although LHM 320s are still being sold). Last year Liebherr supplied 77 MHCs, along with six rail portalmounted slewing cranes and two fixed slewing cranes. This is the best result since 2008, when Liebherr delivered 101 MHCs and one rail portal slewing crane. Following that record year, sales declined by around one third in 2009 due to the global recession. The market stabilised in 2010, providing a solid base for the upturn in 2011. Sales turnover in 2011 came to 263M, 25% up on the figure for 2010. Of the total of 85 cranes supplied by Liebherr in 2011, no less than 49 (or 58%) were 4-rope cranes for bulk handling. In the past five years it has supplied 216 such cranes. were supplied during 2011, all for the fast-growing Indian bulk handling market. Two are used at a multi-purpose terminal in Dahej and the other two at the coal terminal in Morugao. The award was in respect of two LPS 600s supplied in 2010 to Erens coal handling facility in Zonguldak, Turkey. The four LPS 600s supplied to India last year and the Eren cranes are 4-rope cranes supplied with large mechanical grabs for dedicated bulk handling operations. The LPS 600 is based on the LHM 600. This is currently the biggest MHC in Liebherrs range and has a self-weight of almost 580t. It can be supplied with a heavy lift capacity of 208t (under rotator and hook) between 12m and 16m outreach. At minimum (12m) outreach, lifting height under spreader is 45m. At maximum outreach (58m for handling with hook or container spreader), lift capacity is 47.8t (under hook) and 34.6t (under single lift spreader). In 4-rope grab configuration (and with A8 classification), the LHM/ LPS 600 has a capacity of 63t (grab plus load) between 12m and 32m and the maximum outreach is 50m.The cranes are available with Liebherrs Cycoptronic anti-sway system. This comes with a Teach-In feature that pilots the crane semi-automatically from the hold to the hopper. The 600s are designed for han-

dling bulk carriers up to Capesize and productivity is claimed to be around 1800t/crane hour throughthe-ship rate.

Firm principles
The principle of the rail-mounted slewing crane from Gottwald (HSK) and Liebherr (LPS) is the MHC upper carriage from the slewing ring upwards matched with a railmounted portal undercarriage. As Gottwald has shown with the success of its HSK cranes, the rail portal can be adapted to suit narrow quays, where there may not be room for MHC props. The absence of (de)propping means the crane can

Experience the progress.

Driving ahead
The LHM 420 is available in lifting capacities of 84t and 124t and the outreach range is 10.5m-48m. An optimised tubular tower design reduces corner loads by 12% compared to the LHM 400 and the crane is available with Liebherrs increasingly popular Pactronic hybrid power booster drive. This is claimed to provide fuel savings of up to 30% as well as faster hoisting and lowering speeds. According to Liebherr, the higher speeds translate as productivity increases of up to 30%. Currently the Pactronic drive is available on the LHM 420 and the LHM 550 models. Liebherr supplied 33 of these two crane types in 2011, of which no less than one third were specified by the customer with Pactronic. This is a ringing endorsement and exceeds even Liebherrs expectations, given the price premium associated with Pactronic compared to the regular hydrostatic drive. Looking at 2012, Liebherr notes that its order backlog at the end of 2011 was higher than it was at the end of 2010. For that reason, the company believes it is on the right track at least to match 2011s performance this year.

LPS 600 award


Another highlight in 2011 was the IBJ Crane of the Year Award for the LPS 600 model, of which four
Liebherr LHM 550 at the Port of Gulfport, Mississippi

Liebherr-Werk Nenzing GmbH P.O. Box 10, A-6710 Nenzing/Austria Tel.: +43 50809 41-725 Fax: +43 50809 41-447 mobile.harbour.crane@liebherr.com www.liebherr.com

The Group
11

BMI March/April 2012

Cargo Handling
in 2008, 2.094 bt in 2009 and 2.33bt in 2010. Hence trade remained upwards, while container traffic fell sharply in 2009 (although it recovered somewhat in 2010). Quoting other sources, Demag Cranes itself has reported that trade in seaborne thermal coal will increase from 680 mt in 2010 to 1.1 bt by 2025, while iron ore trade is forecast to increase by 46% between 2010 and 2020. The overall seaborne dry bulk trades market is forecast to grow by 7% between 2012 and 2015.

Building with BRICs


A second point is that the role of the BRICs in bulk seaborne trades has grown sharply and continues to grow at a fast rate. In many cases, entirely new ports are required or existing ports have to be greatly expanded, and the expertise to source the right equipment is not always available locally in the time-frame dictated by the market. Sometimes the equipment they source does not match up in an optimum way. However, the main components of a bulk terminal, such as the cranes, grabs, hoppers and conveyors, are all within the scope of Gottwalds experience as a leading supplier of mobile harbour cranes and, increasingly in dedicated bulk terminals and operations, the Gottwald railmounted (HSK) and pontoonmounted (HPK) variants. It is natural for the crane supplier to take the lead with the grabs and the hoppers, says Reardon, since the crane represents easily the biggest part of the investment and Gottwald can call on knowledge and experience from one part of the world to help a customer in another. Many typical pieces of dry bulk handling equipment tend to be marketed only locally, but the bulk centre can provide wider access to the right products for the right job.

Liebherr LPS 600s at Erens coal handling facility in the Port of Zonguldak, Turkey

Gottwald G HMK 6407 B in operation in Korea

/1/04

switch holds quickly. Clearance under the portal may also allow for direct discharge to rail wagons or trucks. As previously reported in BMI, Demag Cranes, the owner of Gottwald, has started an international dry bulk competence centre, based in Banbury, England, to support its growing customer base in the dry bulk handling field in the port industry. The centre is headed by Mark Reardon, who has more than 20 years of experience at Demag Cranes and Gottwald, before which he worked in the open cast mining industry. The centre started up last October and already has a full workload, 10:35 AM Page 1 enquiries and redealing with quests from bulk port operators in South America and India. More project engineers will be recruited to support Gottwald regional global sales centres. Demag Cranes considered basing the centre in Asia or in the U.S.A., but plumped for Europe because the European market, although relatively mature, is still very important. Europe generally, including

the UK, is also a good source of engineers, with mining and/ or bulk port experience, and the UK is an easy place to fly to and from most places around the world.

Why bulk?
Reardon notes that although the 2008-9 recession led to a fall in demand for port cranes (following years of uninterrupted growth), the bulk handling segment held up relatively well. This is because it deals, literally, with the staples of life, such as agri-bulks and energy coal. It is true that mineral bulks such as steam coal and iron ore were affected by the recession, but much less so than consumer goods demand. Bulk seaborne trades are tied directly to population growth. According to the latest estimates (UNCTAD Review of Maritime Transport, 2011), international seaborne trade of the major dry bulk commodities (iron ore, grain, coal, bauxite/alumina and phosphate) increased from 1.957 bt in 2007 to 2.059 bt

Silva lining
Just recently, for example, the

dry bulk centre has sourced two new dedusting hoppers for the Port of Tyne in England, for handling biomass woodchip pellets. Made by Silva in Spain, the hoppers feature an advanced dust suppression system, with an air blade above the windwall where the grabs enter the hopper. In this case, the mobile harbour cranes feeding the hoppers are Liebherr LHM 320s. Like ABP at HIT 2, Immingham, the Port of Tyne opted for Gottwald HSK cranes for its coal terminal at Riverside Quay. Rail-travelling cranes offer a big advantage over mobile cranes when it comes to big ships, as there is no (un)propping time between holds. In Reardons view, large 4rope mobile and HSK-type cranes are more cost-effective than gantry grab unloaders up to around 2000 tph (throughthe-ship) rate per crane. They are less expensive to buy, take up less space and weigh considerably less, so the quay or jetty can be narrower and does not have to support such heavy loads, so civil engineering costs are lower. Lead times from order to delivery are also much shorter. Like the gantry grab

unloader, the slewing cranes are built to last and are usually designed according to the FEM A8 classification (based on 4M cycles.). Typically, the Gottwald slewing crane concept can achieve 30-40 cycles/ h (through-the-ship) when it is discharging onto an open stockpile. Depending on local conditions, the figure may be even higher. If the crane is discharging into a hopper, however, the number of cycles will be influenced by the position and design of hopper. Depending on whether the hopper is discharging continuously onto a conveyor or discontinuously into a truck or rail car under the hopper, the performance of the system as a whole may vary.

ity and the best weight to capacity ratio, while the 4-rope crane itself offers considerable flexibility if it is also fitted with a power cable in the boom head (vertical cable reel), to work with attachments such as container spreaders, motor grabs, etc. Surprisingly, perhaps, a number of dedicated bulk terminals specify 4-rope cranes with the extra power cable, even though it is seldom used. There is no reason why 4rope cranes should be associated with larger cranes. As it happens, the bulk centre is currently dealing with enquiries regarding smaller cranes. The starting point for crane selection is always related to the vessel size.

Sign of four
Gottwald has always recommended 4-rope cranes with mechanical grabs (from suppliers such as Nemag, Peiner/ SMAG and Verstegen) when the crane is aimed mainly at bulk handling. A 2-rope crane requires a motor grab, which is relatively heavy and eats into the capacity of the crane. The power draw of the grab may also be considerable, M&R costs associated with the motor or the hydraulics can be high, the power cable is exposed to damage in some applications (eg metal scrap handling), and shippers may be concerned about the risk of hydraulic oil leaks contaminating the cargo. The 4-rope mechanical grab offers the biggest capac-

Biomass prospects
One area where Reardon sees a good opportunity for the bulk centre to use its knowhow and experience is biomass handling, a growing requirement for bulk ports handling coal. Just now in the UK, for example, generators are waiting for the definitive ROC (renewable obligation certificates) banding, which will lead to a big increase in biomass handling in ports. Technically, biomass poses some interesting challenges. Some types of biomass, such as woodchip pellets, are free-flowing, so they need to be handled by a clamshell grab. However, other types of biomass, such as forest residues, compact under pressure. This requires different thinking about handling. If

innovative

always researching and innovating to optimise our current products and develop new ones

Liebherr receives order for 1000th mobile harbour crane


Liebherr-Werk Nenzing is celebrating its thousandth mobile harbour crane order. The type LPS 550 crane will be delivered in the second half of 2012 to the Montoir Bulk Terminal in France. The crane ordered by MBT, a subsidiary of SEAinvest, has a maximum lifting capacity of 144t and a boom length of 48m. It is equipped with Liebherrs Pactronic hybrid drive system which reduces emissions by 30%. This huge success is based on a constant process of technical improvement as well as an uncompromising commitment to highest quality standards, Liebherr said. Liebherr has 38 years of experience in the mobile harbour crane business. While it took 31 years to sell the first 500 Liebherr mobile harbour cranes, the second 500 were sold in less than seven years, testament to the enduring demand for flexible cargo handling solutions it says.
BMI March/April 2012

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12

Cargo Handling
you push, say, coal or sand from the top, remarks Reardon, it moves sideways, but some biomass products will simply compact and can double their density. Depending on their viscosity, the best solution may be an orange peel grab, but you still have to determine the optimum size. Similarly, the dust nuisance and combustibility values vary according to the composition of the biomass. This again affects the choice of grab as well as handling and storage aspects. vide real-time KPI reports on operational and commercial processes. tively low overall weight and the individual portal configuration of the G HSK 4316 B make it the ideal choice for the finger pier at Fospars terminal at Paranagua, says Demag. Included with the delivery of the crane are two grabs tailored to handling fertilisers and construction materials. As part of Gottwalds mediumsized Generation 5 crane family, the G HSK 4316 B is characterised by its compact and functional construction.
Gottwald G HSK 8216 Bs at Kinder Morgans coal transhipment and stocking terminal in Charleston, South Carolina

Brazilian first
At the beginning of this year, Demag commissioned its first Generation 5 portal harbour crane in Latin America. The G HSK 4316 B, a variant of Model 4, is being used to handle fertilisers and construction material for Fospar S.A. Fertilizantes Fosfatados do Paran (Fospar) at its terminal in the Brazilian port of Paranagua. The crane is based on the manufacturers mobile harbour crane technology and is adapted to run on rails. The compact construction, a rela-

Legal-for-trade weighing
The bulk centre will also be able to provide help and advice with the legal-for-trade bulk weighing system introduced by Gottwald last year. This system in itself underscores Demag Cranes commitment to the bulk market. It is presently available for Gottwald Model 8 cranes but will be made available for all Gottwald 4-rope grab cranes in the month to come. As previously reported, it is based on bi-axial measuring of the forces in the rope pulleys at the boom tip in two perpendicular directions. The load elements and sensors are mounted in the boom tip. UK-based DBIS, acquired last year by Demag Cranes through Gottwald affiliate TBA Nederland, is another key element of the bulk offer, with its leading-edge software products for bulk terminals. DBIS works independently of the bulk centre, but they can work together if it suits the client. Traditionally, bulk terminals carry out stock management with visual site surveys, weighbridges and other weighing systems, but this does not provide the level of accuracy and traceability that shippers now require. DBISs CommTrac bulk terminal management system has become a product of choice for operators around the world. Last October, Peel Ports announced that it had selected DBIS to carry out a major upgrade of the automation and management systems at the Liverpool agri-bulk terminal. This operates a 1800 tph Siwertell CSU and five MHCs, and has >0.5M ft2 of animal feed/biomass storage. The traceability and QA requirements at Liverpool are intrinsic within CommTrac. The upgrade will also include new features, such as automatic accrual of storage and handling charges, vessel discharge optimisation and the ability to pro-

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Tom Ward Chief Engineer, Ports America

Terex sings the Blues


Blue Group was recently awarded the British Isles concession by Germany-based hydraulic hoist crane supplier Terex Fuchs. Blue Group has a strong presence in the growing waste processing business and is now expanding into metals recycling (scrap handlers) and port applications. It has taken over the Terex Fuchs line from the Hydrex Group. Hydrex was Fuchs dealer since 1999 and helped build the UK and Ireland markets into important outlets for the products. Hydrex Equipment (UK) Ltd went into administration last autumn, although its rail division was acquired from the receiver by Network Rail Infrastructure Ltd. Blue Group has taken over Hydrexs staff and Bristol premises and continues to operate Hydrexs Portishead office as the base for the new dealership.
BMI March/April 2012

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13

Cargo Handling

Roll out the rubber carpet

optional impact centre roll can also be specified.

Hot or cold
If a tear is formed, which can quickly develop into a rip, not only will the system have to be shut down to cut out the damaged section to splice in a new section, but the commodity on the belt will have to be removed to allow this repair and to re-tension the belt. There are two methods used, both for steel cord and textile fabric belts. Hot splicing relies on heat and pressure, while a cold splice relies on pressure to force air from the centre out and then it is impacted with rubber mallets. The repaired section is

ssentially, a conveyor system comprises two basic elements, the belting and the structural system which supports it. This latter system comprises a large number of elements such as rollers, idlers and drive motors, all of which are liable to failure and require routine inspection and maintenance. The individual elements which make up the drive and support structure are not crucial to the overall operation of the conveyor and components such as rollers are relatively easy to

Advances made in belt design and manufacture have greatly reduced overall conveyor life-cycle costs
replace.The conveyor belt, however, is a single component and its failure will lead to a system shutdown. Moreover, while the support structure can be reinforced in areas of higher stress loading, such as at transfer points or under a hopper, the belt must be capable of absorbing the highest loading along its complete length. It is possible to limit the impact of sudden loading on a belt through the fitting of dedicated support systems. The Continental Impact Bed, for instance, is designed to extend belt life and reduce downtime by supporting the conveyor belt and cushioning it against the shock of heavy loads and impact. Its modular design allows multiple units to be closely fitted to form the bed length needed while an

then left on the splicing board to cure for about four hours on overland conveyors, and about two hours on small conveyors. The longer the splice, the stronger the contact area of bond, although it might take longer to cure before resuming operations.

Energy saving
In addition to being crucial to the conveyor, the belt also contributes significantly to energy losses, although it is still the single most effective means of moving large quantities of bulk materials. In the study Energy efficiency in conveyor technology and climate protection carried out by the Clausthal University of Technology, it was noted that a continuous transportation equipment, such as conveyor belt systems achieves a better total mass moved to payload ratio of 1.2:1 compared to the best alternative means. This affects the specific energy requirement. According to the study, a belt system needs some 0.14 to 0.25 kWh per ton-kilometre (t-km). This corresponds to a fifth of the energy requirement of heavy duty trucks and has a considerable effect on the level of CO2 emissions. Operating a conveyor belt emits some 55g of CO2 tkm, giving a reduction potential of 276g t-km.

Rolling along
In the contact surface between the conveyor belt and each individual idler, a force acting in the opposite direction to the movement of the conveyor belt is generated, resulting in additional energy consumption. In addition to a series of further factors, the rolling resistance depends on the technological properties of the conveyor belt and, more specifically, the material it is made of. The rubber compound plays a crucial role in the search for ideal material characteristics, explains Wilhelm Schrand, head of research and development, ContiTech Conveyor Belt Group. The many different ingredients and combination ratios result in infinite possibilities here. Using complex simulations, ContiTech scientists adjusted the deformation of the conveyor belts over the idlers and derived hypotheses from this on how to provide the ideal rubber compound. On this basis, different compounds were mixed, tested and optimised, and the most promising compounds were turned into conveyor belts in order to try them out and find the ideal solution. The latest measurements, taken with special measuring devices on a test rig at the University of Hanovers Institute for Transport and Automation Technology, showed significant reduction in rolling resistance with the newest energy-optimised conveyor belts from ContiTech. This resulted in an energy-saving potential of about 20%. A 5km long conveyor belt system, for example, could save more than 3,000 kW.

Resistance to rubber
Firestone has also undertaken complex studies into energy savings, resulting in the development of its own belting material, which it claims can reduce energy requirements by up to 40%. Its designers calculated that approximately 60% of a standard conveyor power demand was caused by the roll-over resistance when the belt passed over a roller, while a further 10% is due to the belt deflection (sag) between the rollers. The specification of the rubber used for the outer casing is crucial in reducing the energy requirement of its design.
14 BMI March/April 2012

Cargo Handling

Engine advances drive front loaders forward

olvo Construction has been steadily upgrading its front loader product range with the introduction of the G-series, all powered by Tier 4 Interim/Stage IIIB diesel engines. At the lower end of the range, the new compact L45G and L50G wheel loaders feature the latest emissionscompliant engines and Volvo patented TP Linkage, ensuring high breakout force and parallel movement throughout the entire lifting range. This combination gives high tilt-back torque and lifting power, increasing productivity when loading or rehandling, while the progressive lift helps retain loose bucket material and minimises disturbing the load when lifting pallets. The breakout torque is also useful if a log grapple is fitted, giving total control of the load in all positions. The combination of stable load and high-reach of the linkage design allows dumping into high-sided trucks. These new machines meet the requirements of the Stage IIIB and Tier 4i emissions legislation, being fitted with Volvos 4l, four-cylinder turbocharged off-highway diesel engine which features cooled gas recirculation and a particulate filter with active regeneration. The activetype diesel particulate filter (DPF) temporarily holds the particulate matter and then incinerates it, further reducing emissions. This process is conducted without any loss of performance during operation. The engine cooling fan allows the engine to reach optimum working temperature faster, operating only when needed. This requires less power to operate, uses less fuel and reduces the noise of the machine. The fan is also reversible, automatically blowing air back through the cooling pack in order to remove debris drawn into the radiator.

Increasing emission control can entail extensive engine bay modifications, allowing front loader manufacturers to further enhance their product ranges
sure, encouraging low fuel consump- only, while firmer pressure engages tion operating techniques. Fuel use the axle brakes to assist operations is also reduced, thanks to a load-sens- if working on an incline. ing steering system that only activates when the wheel is turned. An Monitoring performance inch brake pedal allows further ma- The G-Series incorporates advanced chine control. Applying light pres- electronic monitoring diagnostics designed to 08:00 Page 1 sure on the pedal slows the machine 15/1/09 prolong machine life, enWCN sub form (124x178) using the hydraulic transmission hance uptime and maximise produc-

tivity. Contronics monitors functions in real time and alerts the operator if problems occur. MATRIS, meanwhile, charts and analyses data on machine handling and operation. VCADS Pro is a system that allows a machine to be fine-tuned to specific applications, further improving performance. Finally, the optional CareTrack system is a Volvo Construction Equipment telematics solution, which allows machine location and operating data to be securely viewed via the Internet.

Servicing is made easy with the GSeries, with daily pre-start items quickly checked and scheduled service items conveniently grouped together. The engine cover also provides good ventilation of the engine compartment. It gives good access for fast and easy cleaning or servicing duties, while consumables such as filters are easy to reach and replace. The rear axles are supported on maintenance-free cradles and include greased-for-life bearings and bush-

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Infinite choice
Both the L45G and L50G come with an infinitely variable hydrostatic transmission available in both High and Low Speed variants depending on application. Maximum rim pull on the bucket is available at all speeds, regardless of the direction of travel. For working in wet and/or heavy conditions, 100% differential locks in the heavy-duty axles allow all wheels to turn simultaneously. The rear axle is allowed to oscillate, increasing stability of the machine by maintaining ground contact and providing optimum traction in difficult terrain. Load-sensing hydraulics deliver power to hydraulic functions only when needed, eliminating unnecessary oil pumping. Maintaining the optimum balance between lifting and tractive forces allows effective bucket penetration when digging or pushing into a pile. The smooth and precise pilot-operated hydraulics, meanwhile, enable the operator to comfortably control the attachment, resulting in higher productivity and comfort.

Available from WorldCargo News

Container Terminal Planning - A Theoretical Approach


A major study by Dr Itsuro Watanabe (Container System Technology)
This comprehensive 245 page study is an in-depth analysis of capacity constraints, productivity, selectivity and flexibility of different container handling systems in terminals of different types and sizes: common-users or dedicated; hub centre (transshipment and/or relay) or import/export vocation; gateway or feeder port; intermodal rail or truck distribution inland; with or without CFS, etc. Profusely illustrated with charts, figures and explanatory tables. Effects of different call patterns of containerships and dwell day regimes. Predictive power provided through development of queuing theories. Hundreds of detailed equations. Price: 165 or US$245 or 245 including postage and packing.

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Joy of levers
Depending on preference, operators can choose between joystick and multi-lever hydraulic pilot control both providing precise and steady load control. To encourage operators to work smoothly, an eco accelerator pedal applies an appropriate amount of mechanical back-presBMI March/April 2012

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15

Cargo Handling
ings that reduce service requirements. Both machines achieve high power outputs with low emissions without the need of any supplementary additives or a DPF. The machines also feature a low idle speed and an engine shutdown mode, which activates after a pre-determined period to save fuel. A ZF four-speed automatic power shift transmission comes as standard, with a new optional five-speed power shift box also available. A lock-up torque converter on the five-speed transmission activates in second through to fifth gear, reducing losses from the transmission and increasing productivity. lective catalytic reduction (SCR) technology, which results in lower temperatures in the exhaust system while optimising combustion. The Case 621F wheel loader features a 6.7l Tier 4 Interim-certified engine that delivers up to 121 kW. Classified as a 2.1 m3 wheel loader, the Case 621F has an operating weight of 12 084 kg. The Case 621F wheel loader delivers the best fuel economy and performance in its class size, claims Tim OBrien, brand marketing manager, Case Construction Equipment. Like other F Series models, the 621F offers four programmable power modes to save fuel and increase available power. These easy-toprogram power modes Economy, Standard, Max and Auto give operators flexibility in matching engine power to their jobs. A new dual-mode shutdown feature maximises fuel economy and monitors vital engine components. Using the fuel-saver mode, the operator can limit the time the machine will idle. The desired shutdown time can be set in fiveminute increments. The automatic engine shutdown feature can provide up to another 30% percent in fuel savings, OBrien said. cooling and air filtration components for working in cement plants, agriculture and other applications where the machine operates in extremely dusty or particulate-laden environments. The Case joystick steering enables operators to move between the joystick and steering wheel for high-production operations. An optional twolever hydraulic control system is available. The Case PowerInch feature lets the operator quickly and precisely approach targets in tight areas, regardless of engine speed. PowerInch maintains high RPMs to maximis e hydraulic power and control. A new rearview, wideangle camera with an adjustable colour monitor is available in the Case F Series. The camera option nearly eliminates blind spots and is ideal for jobs that require operating around other machines or workers, the company says. A machine with excellent visibility to all corners of the vehicle improves everyones safety on a busy jobsite, said OBrien. The Case F Series wheel loaders offer best-in-class rear visibility and a panoramic view to the front and sides for enhanced operator confidence and productivity. The Case 621F wheel loaders includes an advanced instrument cluster that monitors fuel consumption and enables the operator to adjust various functions without relying on a service technician. All Case F Series models also offer ergonomically placed controls.

Big brother
At the other end of the wheel loader product line, the new Volvo L180G features a 13l Tier IIIB-compliant 333hp engine, optishift transmission and axles all designed and manufactured by Volvo. It offers a full turn tipping load of 17.2t, a 20% increase in lifting force and 10% increase in breakout force over its predecessor. This, coupled to the engine output with high torque at low engine rpm, has resulted in faster cycle times and increased productivity. Two stronger, variable displacement load-bearing axial piston pumps and hoses have been introduced to handle the increased pressures. These provide superior control of the load and attachments, as well as high breakout force, faster lifting and tilt functions. A new hydraulic cooling system has been designed to reduce the working temperatures by up to 20oC over the F series model.

Volvo is progressively upgrading its wheel loader product range from the F to the G-series to incorporate the latest Stage 3B/Tier 4 engines. These offer lower fuel consumption than previous comparable models

Clever clutching
An intelligent clutch cut-off system is incorporated as standard, for both the 4-speed and 5-speed transmissions which dynamically adjusts the clutch cut-off point depending on transmission output torque and brake pressure. It effectively disengages the clutch to limit tractive effort, and also reduces brake wear on the ZF axles. When the operator presses the brake pedal, maximum power is provided to the load sensing hydraulic system, while reducing power to the driveline. This provides greater control at higher engine rpm and lower travel speeds, boosting productivity when loading. The new ZF automatic differential lock axle option allows the choice of a standard

JCB breaks out


Following the launch of its flagship 457 wheel loader earlier this year, JCB has now upgraded its mid-range designs with the introduction of new 427 and 437 models. Both new models are powered by a 6.7 litre Cummins QSB engine, which is Stage IIIB (Tier 4 Interim) compliant without using a diesel particulate filter or selective catalytic reduction. As well as the variable geometry turbocharger, the Cummins engine incorporates a high-pressure common rail fuel injection system, exhaust gas recirculation and a diesel oxidation catalyst. The JCB 437 delivers 129kW, equivalent to the outgoing 436 model but with significant fuel savings. The JCB 427 also offers reduced fuel consumption with power of 118kW (158hp), as well as a 9.4% increase in torque, taking it to 801Nm.

open differential, limited slip differential, or an automatic differential lock on the front axle only. The automatic option locks the differential when required, without the operator needing to activate the system, providing increased traction and less slippage. The new axles also benefit from wheel speed braking, lengthened service intervals to 1,500h and increased service life in heavy duty applications with the option of sintered pads.

Moving up
The introduction of its new 457 model earlier in the year has seen JCB move up a class in the wheeled loader market. Replacing the earlier 456, the new 457 is the biggest and most powerful wheeled loader the firm has ever built with a 235kg

JCB has had a busy year to date, with the launch of its flagship 457 wheel loader and upgrade of its mid-range designs

increase in load capacity of the previous range 6300kg. The 457 is powered by the new 8.9l Cummins diesel, equipped with variable geometry turbocharger, to meet Tier 4 Interim/Stage IIIB emissions requirements. Full electronic control of engine functions is incorporated, while the ZF WG210 transmission is available in the standard four speed or optional five speed version, both of which feature intelligent clutch cutout functions. Torque proportional traction and an automatic differential lock ensure good traction in rough terrain. The integrated JCB Livelink system provides real-time data on how the machine is being used such as cycles, performance, distance travelled and engine oil and hydraulic fluid temperatures and pressures.

Sure footed
The new Case wheel loaders include standard limited-slip front and rear axles that provide optimum traction in all conditions, especially in noncompacted surfaces, such as gravel. Optional heavy-duty axles with locking front and conventional rear differentials help reduce tyre wear when working on hard surfaces. The standard four-speed transmission with manual kick-down capability provides maximum traction and increased bucket penetration. The Case 621F wheel loader can perform in a wide range of applications, from construction sites to aggregate operations, OBrien said. We also offer a Commodity King option package that takes advantage of our unique mid-mounted cooling module. The Commodity King package provides special

Case study
Earlier this year, Case Construction Equipment introduced the new 621F wheel loader model which provides up to a 10% increase in fuel economy over the previous model, while delivering faster acceleration, quicker cycle times and higher travel speeds. The new Case 621F wheel loader, like other models in the product line, evolved from the companys E Series machines. To meet Tier 4 Interim emissions standards, the Case F Series wheel loaders use se-

Attached value
Case offers a range of attachments for the 621F wheel loader, including pallet forks, brooms, jib booms, buckets and weigh-load systems. It is also available with JRB- and ACS-compatible couplers. Case F Series buckets are available with standard Case SmartFit bucket teeth or bolton edges. The SmartFit system provides stronger, more durable teeth and adapters, and hammerless, reusable locking pins, says Case. The SmartFit line-up includes general purpose, rock chisel, heavy penetrator, tiger, twin tiger and flare teeth.

BACK ISSUES
To purchase back issues of Bulk Materials International and for an archive of articles previously published in BMI please see our website: bulkmaterialsinternational.com

Spending spree slows

In Print and Online


www.worldcargonews.com www.bulkmaterialsinternational.com

There is some concern that as Chinas economy slows, the commodity boom and the capital investment required to fuel it, will be hit. Both Rio Tinto and BHP Billiton have announced plans to re-evaluate new development projects and instead prioritise on profitable operations and balance investment with cash flows. The two conglomerates account for around of a third of capital investment in this sector, which is anticipated to rise only some 13% this year compared to 34% last year, while the outlook for 2013 is expected to fall again. This will have a signifi-

cant trickle-down effect on equipment suppliers, which have until now enjoyed a boom in orders and high price levels. Caterpillars order books for some of its equipment range is full until 2014, although some operators may seek to delay or renegotiate deliveries. Sectors such as the front loader market could be hit as operators postpone new orders and extend the life of their existing fleet. However, this can only be for a limited period as emission regulations will eventually require operators to comply with the more stringent standards and upgrade their machines.
BMI March/April 2012

16

Sampling & Inspection

M&A activity primes inspection and testing market for growth

GS has acquired Metlab (Pty) Ltd., Boksburg, the metallurgical testing laboratory in Southern Africa. With a network of over 1,350 offices and laboratories around the world, SGS offers a wide range of services to the minerals sector including geochemical analysis, resource calculation, mineralogy, metallurgy, advanced systems, water treatment, energy and fertiliser minerals testing and trade services. Metlab provides a range of destructive and non-destructive metallurgical testing and is renowned for its replication, hardness and chemical test technicians, as well as its ability to conduct specialised testing on client sites. It serves the heavy engineering, power engineering, testing & inspection, heat transfer, piping and tubing, steel mill and steel fabrication industries. Metlab is an exceptionally well-run business and this acquisition will solidify SGS metallurgical laboratory testing footprint globally and provide access to key South African industrial accounts, said Chris Kirk, CEO of SGS. This acquisition supports SGS growth in the destructive and non-destructive testing Southern African markets.

A spate of recent merger and acquisition activity in the inspection and testing market has increased optimism in the sector
awarded the operational contract for the on-site laboratory at the Oyu Tolgoi mine in the Southern Gobi Region of Mongolia. Oyu Tolgoi is the worlds largest undeveloped coppergold project and is located in the South Gobi region of Mongolia, approximately 550 km south of the capital, Ulaanbaatar, and 80 km north of the Mongolia-China border. Operation at the on-site laboratory is expected to begin on 1 June 2012 and the facility is scheduled to operate 24 hours a day, 7 days a week. Its scope of operations will include rapid grade control, process plant, final concentrate and environmental determinations. SGS currently runs an onsite sample preparation laboratory for the Oyu Tolgoi exploration team at the Oyu Tolgoi site. Samples are prepared at the exploration site and shipped to SGS nearby commercial laboratory in Ulaanbaatar for all required analyses. total of 29 testing and sample preparation laboratories in 12 countries, mainly in North and South America. AcmeLabs uses cuttingedge technologies such as Inductively Coupled Plasma (ICP), ICP-Mass Spectrometry (ICP-MS) and X-Ray Fluorescence (XRF). Bureau Veritas and AcmeLabs have highly complementary activities and locations in services related to metals and minerals. Bureau Veritas says that this acquisition enables it to create a minerals centre of expertise in

Canada, one of the largest producing countries, and to enhance Bureau Veritas minerals footprint in South America. In addition, synergies are expected from improved operating efficiency, notably through network optimisation and the leverage of the hub & spoke operations model of AcmeLabs, and through the development of both Bureau Veritas and AcmeLabss key accounts with its combined networks and capabilities.

UK investment
At the end of 2011, international inspection and analysis specialist Stewart Group announced that it had made a significant investment at its UK laboratory. The company, which was acquired by global minerals

experts, ALS Group last year, extended its facility in Liverpool, England and invested in new state of the art technology. It invested almost 200,000 in the PANalytical Axios max-wavelength dispersive Spectrometer, which will supplement its laboratory instrumentation to provide reliable, accurate and fast analysis of metals and minerals, ensuring its quality of reporting is as advanced as the market demands. The investment includes an upgrade in Omninium plus software improving accurate semi-quantitative analysis. This technology boost enables Stewart Group to continue to offer clients accurate analysis and rapid turnaround times, it said. The entire procedure is dedicated

towards delivering to clients with pressing deadlines and exceeding expectations. We are one of the foremost umpire and party analysis laboratories in the world, said Chris Walker, group general manager of Stewart Group Inspection & Analysis. This investment in technology reaffirms our dedication to expansion and development. Our network of progressive laboratories will continue to develop and invest in advanced technology. We will also be offering advanced training to our staff, to ensure they remain experts in the field of inspection and analysis. Stewart Group operates from 26 laboratories and offices throughout North America, Africa, Asia and Europe.

New facility
The new on-site facility will employ more than 50 staff and many are currently being trained at SGS local laboratory in Ulaanbaatar. The Ulaanbaatar facility is a fully equipped commercial facility with fire assay, ICP, XRF, fluorine, chlorine, sulfur, carbon and classical wet chemistry capability as well as a full scope of testing for coal and conforms to the requirements of ISO/IEC 17025 for specific registered tests. A metallurgical laboratory is also being commissioned by SGS in Mongolia to service the Oyu Tolgoi mine. The Oyu Tolgoi on-site laboratory complements SGS Minerals Services existing facility in Ulaanbaatar and further expands our broad network of commercial labs around the world.

MSPU launches
SGS has also announced the opening of its new Mobile Sample Preparation Unit (MSPU) in Ouagadougou, Burkina Faso. The MSPU expands our rock and drillcore sample preparation capacity in Burkina Faso, ahead of our major new laboratory complex being built in Ouagadougou, SGS said. The MSPU will immediately add an additional 600 samples/day capacity. Coupled with this increase in sample preparation capacity has been a 60% increase in fire assay capacity at the SGS Ouagadougou laboratory with a retooling of the fire assay lab. The new unit is the latest addition to its strategically located fleet of MSPU units in four continents, which make use of industry standard equipment and employ staff trained using SGS global method protocols. SGS brings over 30 years of on-site and commercial laboratory experience to the design of its mobile laboratories. SGS says that its mobile laboratory services offers clients competitive advantages including fast turnaround, accurate geochemical and/or assay data, customised sample preparation protocol and reduced shipping delays and costs.

Stronger position
Bureau Veritas has acquired AcmeLabs, the third largest player in upstream minerals testing in Canada. With this acquisition, Bureau Veritas says that it now has a stronger business position in Canada, a market offering high growth potential, and has expanded its global position in Metals & Minerals (M&M) with a full presence in key global mining hubs in Australia, Canada and South Africa. Founded in 1971 and headquartered in Vancouver, Canada, AcmeLabs provides sampling preparation, assaying and geo-analytical services. The company operates a

If you need MORE growth or want to generate LEAN efciencies, contact SGS. Daily, the SGS global team delivers technical expertise, effective services and sustainable solutions that can enhance your project.

SGS IS THE WORLDS LEADING INSPECTION, VERIFICATION, TESTING AND CERTIFICATION COMPANY

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Oyu Tolgoi contract


At the end of 2011 SGS was
BMI March/April 2012

17

Commodity Focus

Indias coal imports set to surpass Chinas


ndia is poised to surpass China as the worlds biggest thermal coal importer as it seeks supplies for power producers that have halted plans for US$36B of new plants because of fuel shortages. Indias imports may exceed 118 mt this year, compared with Chinas 102 mt, said Daniel Hynes, director of commodity research at Citigroup in Sydney. India imported 81.1 mt of thermal coal in 2011. Its imports may rise after the government ordered state-run Coal India to plug a local shortfall with foreign supplies, according to analysts at Sanford C Bernstein & Co. Indias US$1.7T economy grew at the slowest pace in two years from July to September as power and factory output slowed.

Infrastructure improvements and mine privatisations have been announced as countries seek to capitalise from steady demand for coal
Coal shipments to China will be diverted to India, said Michael Parker, a Hong Kong-based analyst at Bernstein. In China, power consumption growth rates will continue to decline and coal production and transport capacity growth are rapidly improving, he said. The deficit between demand and supply of domestic coal in India may rise as high as 150 mt by 2014 if the country fails to increase local supplies by 6% this year, said Hynes. The nation is seeking to improve infrastructure to achieve average economic growth rate of 9% over the next five years. Thermal coal imports by China will drop this year by about 40 mt, an amount that may be bought by India instead, Parker said.

Chinas coal output increased 11% in 2011 and may grow 6.6% this year, Bernstein said.

Komi coal
Elsewhere, the Komi Republic, Russias autonomous region at the western edge of the Polar Ural mountain range, is looking to almost double its annual coal output from 13 mtpa to 23 mtpa by 2020. Russian steelmakers Novolipetsk Steel (NLMK) and Severstal have been granted licences to exploit allotments of the Usa coalfield in transpolar Komi. Both NLMK and Severstal, through its Vorkutaugol coal mining arm, are planning to build new integrated works to annually mine and process 4.5 mt and 4 mt of coal respectively. Moscow-based Systemgroup, whose mining assets

Chinese demand
Chinas purchases rose 17% to about 138 mt last year, excluding coking coal used to make steel. China will add 200mt of coal-production capacity this year, twice as much as in 2011, according to the National Energy Administration. Power consumption increased 12% last year and may increase 8.5% this year, the official Xinhua News Agency reported.

CBM AFRICA
11 - 12 June 2012 Radisson BLU Hotel, Sandton Johannesburg

Unlocking the energy potential


Coal Bed Methane / Coal to Liquids / Underground Coal Gasification
Join local and international industry leaders at CBM Africa to hear key topics surrounding CBM in Africa, including:
J How to manage and optimise benefits from the countrys coal resources? J Regulation - The balancing act of overlapping coal and CBM J The outlook for the African LNG market J Infrastructure needed to develop South Africas natural gas potential J Land access, environmental laws, safety and community concerns J Water management & drilling experiences in CBM operations What can be learnt from Australia? J Workforce challenges and planning J Why UCG? Its potential in Southern Africa J End users perspective of CBM

Confirmed speakers to-date include:


Tertius Kruger, Project Manager, Gas Energy, Exxaro Tebogo Segwabe, Geological Survey, Botswana Gabriel Canahai, Associate Hydrogeologist, Golder Associates Africa Pty Ltd Paul Tromp, Exploration Director, Badimo Gas Andy Lambert, Managing Director, Kinetiko Energy Ltd Ian Tchacos, Chairman, Instinct Energy Limited Andrew Elf, General Manager Drilling Services, Mitchell Drilling Services Michel Thuysbaert, Managing Director, Cobramar Ltd Dr. Lin Tu, Executive Director, Clean Coal Technology South Africa Prof Philip Lloyd, Energy Institute, Cape Peninsula University of Technology Alan Golding, Director, Analytika Holdings Prof Danie Vermeulen, Director of the Institute for Groundwater Studies, University of the Free State (UFS) Conrad Kahts, Managing Director, Aqua Alpha

are concentrated mainly in eastern Siberia (Yakutia), will upgrade Intaugol, the Komibased miner it acquired late last year, to increase its annual coal output by 1.5 mt. According to Yevgeniy Shumeiko, a member of the State Council of Komi, the republic is the site of Russias largest coalfields. Total reserves of the Usa and Seida deposits are estimated at 4 bt of coking coal and 7 bt of steam coal respectively. But Shumeiko has voiced concerns that the full potential of the coalfields may not be realised unless the poor transport infrastructure in the region is developed. There is just one rail line that connects Inta and Vorkuta with the rest of the Russian territory and so will be incapable of dealing with a growth in freight. It is expected that the endorsement of the mining programme will encourage the construction of a rail link in Russias north-western regions and specifically the revival of the long shelved Belkomur project aimed to link the northern Ural region (including Komi) with the White Sea harbours. Belkomur Interregional Company director general Elman Khudazarov said that the US$5.2B rail line could be in operation by 2017. In January this year, Russian premier Vladimir Putin endorsed the US$125B programme for developing the nations coal sector by 2030. In view of the growing global and domestic demand for coal, Putin placed special emphasis on the necessity to tap new Russian sources.

Ukraines reform
Reformation of the coal sector is a priority in Ukraine, where the energy and coal ministry is mulling over the privatisation of some 120

state-run coal mines this year. According to deputy energy and coal minister Igor Popovych, the countrys cabinet will soon release a list of the collieries subject to denationalisation. Earlier, the Ukrainian government determined that privatisation of its coal mines was an important part in the reformation of the coal sector and said that it planned to attract around US$457M of direct investment into the industry this year. The full-scale privatisation of Ukrainian mines is scheduled to finish by 2015 under the nations energy strategy. We will follow the example of the 1990s Russia, which privatised its entire coal industry, says Yuriy Korolchuk, an expert with the Ukrainian Institute of Energy Research. Half of the Ukrainian coal sector is already in private hands, he said. According to Korolchuk, last year - for the first time in their history - state-run collieries fell behind the production volumes of privately-held mines, contributing just 47% to the countrys overall annual output. Currently some 30 mines, or just 18% of their total number, account for 50% of the total domestic coal production and so form the core of Ukraines coal sector, said Oleksiy Stogniy, the head of the forecasting department at the Energy Industry Institute of Ukraines National Academy of Sciences. One third of Ukrainian mines are unprofitable, he said. Ukraine has the worlds seven largest commercial coal reserves estimated at around 6 bt as of 2011. The coal sectors aggregate mining capacity is 90 mtpa, including 55 mt of steaming coal and 35 mt of coking coal.

Schade Lagertechnik supplies new coal storage unit to China


Hua Yang Electric Company, a subsidiary of China Shenhua Energy, has ordered a circular storage facility from Schade Lagertechnik. This latest circular storage contract is the seventh which Schade will deliver to Hua Yang. The facility will be erected in Xiamen province by the end of 2012, and trial operation is scheduled for May 2013. The storage unit has a diameter of 120m and can store 4400t of coal per hour and reclaiming capacity is set at 2000t/ hour. Schade is also to supply a circular storage facility of 100m in diameter. The unit will be supplied to Jiahua Chemicals, near Shanghai. The circular storage is designed for a storage capacity of 900t of coal per hour; the reclaim capacity is 600t/hr. Circular storage facilities offer a combination of low space requirement and high storage volume and are available in various configurations employing a combination of stacker, slewing, circular or portal scraper. Storage of the material is performed based on the cone forming process, the scrapers are equipped with a double strand chain and wear-protected buckets. The simultaneously enabled stacking and reclaiming processes are SPS-controlled. Stricter environmental protection regulations have significantly increased the demand for enclosed storage facilities. The first circular storage facility with combined stacker/scraper was designed and built in 1988 in order to store 95,000m3 of coal on a stockyard measuring 97m in diameter.
BMI March/April 2012

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