The UK port sector has undergone a series of changes in recent years as port companies fight to retain and win new business. Authorities have taken on board calls to add value to business and to improve services to the fresh produce industry and, in these competitive and security-conscious times, everyone is aware that it is a case of survival of the fittest.
Despite all the extra demands, the UK port industry is in good health, according to insiders. “Competition between ports in the UK and on the continent is fierce, which is good for the industry and the customers we serve,” says Simon Bird, chief executive of Bristol Port Company (BPC).
According to Bird, much of the volume handled through Bristol Port’s fresh produce terminal goes directly to the regional distribution centres (RDC), and BPC is concentrating on increasing current levels. “The terminal is only five years old, with phase two completed more recently, and we are committed to achieving the high quality standards expected,” he adds.
At the terminal, BPC has introduced a packing line, which it operates to meet specific customer requirements. “We can also offer facilities to our customers, who may wish to re-pack prior to delivery to the supermarket,” Bird tells FPJ.
BPC continues to handle regular volumes from Chile, with a weekly reefer service operated by CSAV and LauritzenCool during the course of the season.
“We have seen volumes on the service increase year on year and subject to harvest and the attractiveness of the UK markets to other markets. We would expect this to continue,” Bird says.
In addition, the port also handles volumes from Europe, South Africa and New Zealand.
According to BPC, the UK ports sector will expand as import cargo volumes continue rising. The company predicts there will be further deep sea container terminal expansion in the coming years.
“Bristol Port expects to be involved in this process and is developing a deep sea container terminal capable of handling the next generation container vessel,” says Bird. BPC has advised the government of its intention to make an application for a Harbour Revision Order (HRO) and is in the middle of a year-long environmental impact assessment. When that is completed, BPC will formally apply for the HRO.
The Port of Dover is certainly optimistic about future opportunities. George Hammond is confident it can handle 350,000 pallets of fruit at the port by 2009, according to managing director Brian Madderson. Some 230,000 pallets of fruit were moved last year and the firm expects to handle 300,000 pallets in 2007 with Seatrade Reefer’s Seaban service, the existing Del Monte service from Central America and the newly combined CamNorth service operated by AEL for Del Monte/Compagnie Fruitiere.
“We knew that our temperature-controlled facilities would need to expand significantly when Del Monte and AEL decided to get together at the end of last year,” says Madderson. “The extra volume is something like 70,000-80,000 pallets a year. Hence we devised an innovative financing arrangement with the Dover Harbour Board, which enabled over £1 million to be spent on providing an extra 1,500-2,000 temperature controlled pallet spaces by Easter this year.”
The AEL vessels call at a number of West African countries including Cameroon, Ghana and the Ivory Coast, picking up pineapples, bananas, mangoes and, when in season, melons. Although this business has increased volumes, George Hammond is still hopeful of attracting more cargo into Dover.
“Our discharge productivity for palletised fruit under deck in specialised reefers is faster than any UK port,” Madderson tells FPJ.
Ask port authorities what is the key to success and many will say location, location, location. Madderson says the Port of Dover is blessed with an “optimum natural location”. “From the Port of Dover, ships can go straight to Antwerp and Zeebrugge without having to navigate through the Thames traffic. Ships might save as much as five hours, which can mean savings of US$600 (£305) in bunker fuel,” he continues.
Bristol Port has developed its business due to its geographical location in the UK, according to Bird. He points out: “Bristol Port is the closest deep sea port to the major population areas, and with direct motorway access (M4/M5) and direct rail links, the port has the best infrastructure access to any of the major ports.”
Agility (formerly known as GeoLogistics) is active in a number of UK ports and handles fresh produce from the ports of Felixstowe, Tilbury, the Isle of Grain, Sheerness, Southampton and Bristol, says Michael Orpin, Agility’s produce manager.
The international freight management and logistics company also handles US fresh produce which docks at Liverpool. Although more fresh produce is being transported by container, rather than the traditional break-bulk method, Orpin points out that “speed of availability” is always an issue with importers.
He explains: “Goods being offloaded from break-bulk shipments are generally available quicker than from containers. In fact, depending on customs clearance and examinations etc, break-bulk goods are often available on the day of arrival of the vessel, but for containers it’s on day three.”
Over the last 18 months, Agility has taken on a number of new clients, two of whom specialise in organic produce.
“Agility has departments dedicated to HM Customs matters and we have many third-party accounts within the industry, such as inland cool storage facilities,” Orpin says. “We can generally help any importer through the rigours of satisfying all the various authorities who control perishable imports into the UK and EU. We have offices at all the major ports and airports in the UK and contracted agents who handle our business at some of the smaller border posts.”
In recent years, security has become much more of a priority for UK ports. Under the ISPS Code, all UK ports must comply with national and international legislation, providing security for vessels at the berth where the vessels are loaded/unloaded and at the storage areas for cargo.
“Security is just as much of a priority, if not more given the current problems in the world, and UK ports have taken steps to face up to their responsibilities in this area,” says Dave McLean, managing director of Hellman Perishables Logistics (HPL). “Of course, there is a cost involved and that cost is being passed onto the trade in the form of security fees.”
In the UK, HPL operates from its Colnbrook premises, which comprises a 23,000sqft fully temperature-controlled warehouse, consisting of a further four separate chambers and a blast chiller.
“HPL is always looking to increase market share, and we maintain a strong focus on the fresh produce industry, whilst at the same time diversifying into other time- and temperature-sensitive products,” says McLean.
HPL has also picked up a number of new customers this year, both in the fresh produce field and in the chilled and frozen seafood, pharmaceutical and cosmetic arenas.
One of the main changes HPL has identified over the past few years has been the implementation of Vehicle Booking Systems (VBS) at major container ports. These were designed to help speed up the collection and restitution of containers.
“There were obvious teething problems when the VBS were first implemented. However, it is our experience that things are running a little more smoothly these days,” McLean says.
Those involved in the sector are also keeping a close eye on transport rates and costs. “There have been rises year on year for a number of reasons, mainly the cost of fuel. However, with carbon footprinting now being the buzz word, we can expect to see further government tax increases which will have an effect,” says McLean.
With road pricing likely to feature more heavily on the government agenda, coupled with consumer pressure for reductions in lorry miles and emissions, Bird predicts that supermarkets and other major retailers will introduce these criteria into the routing of logistics supply chains.
Approximately 1,000 trucks per week carry fresh produce from Iberia through France into the UK. BPC has been in discussions with the supermarkets about using vessels to carry fresh produce.
In order to remain competitive, and to provide the flexibility supermarkets require in terms of frequency, Bird predicts there will need to be at least three sailings per week into Bristol. “Market potential is considerable, but is fragmented; there are indications that consolidation is underway,” Bird tells FPJ. “Certainly some of the major supermarkets are pushing hard with us to find a commercial solution, which I am confident we will achieve.”
Sources say life on the ocean could get more exciting in the future. “The decline in airfreighted produce, advances in container and reefer technology and the new and further proposed building of larger vessels will see yet more produce moving by sea,” predicts McLean.
LOFTY VIEW FOR GOTTWALD CRANES
Having entered the UK in 1980 with its first mobile harbour crane, Gottwald Port Technology now supplies just under 70 cranes to 27 UK and two Irish ports.
The company’s cranes are used throughout the UK from Aberdeen to Plymouth. “Demand for cranes has never been greater than at present, with 19 cranes supplied in the past two years to UK customers,” says Mark Reardon, regional director.
Gottwald cranes are used by most of the fruit-handling ports such as Medway, Dover, Portsmouth, Southampton, Bristol and Foynes in Ireland.
Gottwald launched its Generation 5 cranes last year and the first UK crane was commissioned by Southampton Container Terminals. “The Generation 5 cranes are higher, more powerful and faster,” says Reardon, left. “The new crane has many advantages for maintenance with a true “double deck” design, removable side panels and optimised component layout.”
BNFW in Antwerp has recently ordered one of the new series cranes and Generation 5 cranes will shortly be delivered to Immingham and Tyne.
“The challenge we currently face is to build the cranes fast enough to keep up with demand, as 2006 saw 82 cranes delivered worldwide and 2007 orders are expected to be even higher,” Reardon says.
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