COUNTERING bids from Deutsche Bank and the Carlyle Group to build a Port of Virginia container terminal, APM Terminals has sent a sales pitch directly to the "mayors and chairs" of towns and other elected bodies to win support.

APM T president Eric Sisco's unsolicited proposal involves the transfer of ownership of the APM T facility to the state of Virginia that he says would free up nearly US$4 billion in state revenue.



Said Mr Sisco: "We'll double the size of the current APM Terminals facility and modernise and expand NIT and the other facilities. We'll also delay, for decades to come, the need for Virginia to commit another US$1.5 billion to $2 billion to the planned development of Craney Island."



If APM Terminals' unsolicited bid for the Port of Virginia is accepted, then the company will inject more than $2 billion in capital investments into the terminals, said Mr Sisco's letter.



"APM Terminals has been a partner with the Commonwealth [of Virginia] and the Port of Virginia for the past 35 years. Continuing our long history of investment, in 2007 we made the largest private investment in Virginia and the largest private port investment in the United States when we built our $540 million state-of-the-art container terminal in Portsmouth. We face the same transportation challenges each one of you face," the letter said.

SHIPPERS in Bangladesh are protesting November's round of freight rate increases announced by major carriers on the India subcontinent to Europe route, saying they will cut margins in the sale of low value clothing.

"It is really bad news for us. The new rates by shipping companies will affect us adversely," said Shafiul Islam Mohiuddin, president of BGMEA (Bangladesh Garment Manufacturers and Exporters Association). "If the rates are implemented, local garment makers will suffer to a great extent."



Singapore carrier APL will increase rates by US$500 per TEU and $1,000 per FEU, reported Dhaka's Financial Express. Rates of Taiwan's Evergreen Marine will rise $525 per TEU, Korea's Hanjin by $500 per TEU, Denmark's Maersk by $500 per TEU, Japan's "K" Line by $525 per cent TEU and NYK by $525 per TEU while Hong Kong's OOCL will increase rates $525 per TEU.



Defending the country's $19 billion garment export sector, Mr Mohiuddin said: "If the rates are implemented, local garment makers will suffer to a great extent."



Anowar ul Alam Chowdhury Parvez, managing director of Evince Group, said the T-shirt producing companies will suffer seriously as they send their goods on C&F (cost and freight) basis.



Europe is the main export destination for Bangladesh. Apart from this, local entrepreneurs import machinery and other industrial equipment from Europe.



Said Maersk country manager Shamim Ul Huq: "The new GRI [general rate increase] is necessary to sustain the business of the shipping companies," adding that rates had fallen over the last two years.



Said NYK country manager Rashed Ahmed: "Shipping fares dropped to nearly 50 per cent following poor trade across the globe. The new rates will not affect Bangladesh's shipment as it is lean period for exports."



Said "K" Line official Sahed Hasan: "Chinese cargoes fell this year affecting the shipping companies," also expressing doubts to the newspaper that carriers would be able to implement rates fully.

THE Hampton Roads-Richmond container barge service, promoted as an anti-truck environmental measure, is increasing frequencies from twice to three times a week, the Virginia Port Authority has announced.

The 64 Express container-on-barge shuttle can handle 80 to 100 boxes per barge depending on their size, reports American Shipper.



The barge service aimed to reduce truck traffic on Interstate 64, trim carbon emissions and better use the Port of Richmond, which lost its two last ocean carriers as a result of the recession, said the report.



"We've taken nearly 12,500 trucks off the road and the emissions that go with that figure as well as a reduction in the wear and tear on the roads," said the port authority's environmental director Heather Wood.



Said acting port authority CEO Rodney Oliver: "Adding a third sailing along with an overall increase in customers that are considering the barge as a means of transporting cargo sets it up for success going forward. This started small: once a week. The next step is to get it to five days a week."



Through August, 6,227 containers moved on the twice-weekly barge service, compared with last year's total of 4,386 containers. Barge traffic was off in 2011 because a major user cut use of the service.

US PORTS need US$18 billion in infrastructure upgrades to keep up with the rest of the world, but only $7.2 billion has been budgeted to do the job, according to the American Society of Civil Engineers (ASCE).

"Congestion and delays lead to goods waiting on docks and in warehouses for shipment, which in turn leads to higher transportation costs and higher-priced products on store shelves," says ASCE president Andrew Herrmann.



From 2020 to 2040 more than $28 billion will be needed, which leaves requirements $17 billion short in current budget estimates, said the ASCE study, according to New York's Maritime Professional.



Inland waterway traffic is forecast to rise by 11 per cent to 51 million tons by 2020, and 25 per cent by 2040, the report said.



More than half of crude oil goes on inland waterways, along with 24 per cent of other fuel oils and 22 per cent of basic chemicals. Costs attributable to delays in the nation's inland waterways system were $33 billion in 2010 and will increase to $49 billion by 2020, said the ASCE report.



Combining inland waterways with ports, the funding gap is $46 billion for capital upkeep. From 2012 to 2020, it is estimated that 25 per cent of the capital investment needs of ports will be for expansion, and 75 per cent for upgrades. By 2040, 83 per cent of the funds will go to maintenance and upgrades, the report said.



"Port authorities themselves are planning on spending a combined $18 billion through 2016 on infrastructure improvements for water terminals, while their private-sector terminal partners are looking at spending $27.6 billion, for a total of nearly $46 billion. This is more than $9 billion a year in combined infrastructure investment, of which more than one-third will be spent by the port authorities themselves," it said.



The ASCE said much dredging will be needed based on its calculations on the extra costs of using smaller ships to import and export goods. The total for all goods to 2040 is $13 billion, with oil and related products the most costly at more than $4 billion.

BARCLAYS BANK CFA John Windham, head of Asia ex-Japan Industrials Equity Research for Barclays Bank, will be giving the keynote address on the economic environment for container shipping at TPM Asia on October 17-18 in Shenzhen.

The talk will address: "What does the economy look like from the October 2012 vantage point? What can be expected for European and North American demand? Can developing nations whose growth has been faster this year than the industrial world pick up the slack?"



For the full conference agenda and to register, visit: http://www.tpm-asia.com/cultureNewsInfo2.asp?Id=103

THE airport's No 1 ground handler, Hong Kong Air Cargo Terminals Ltd (Hactl) has revealed it is to suffer a major blow in 2013 when its biggest customer, Cathay Pacific Airways, moves away into its own new freight terminal.

"We have to gear the company up to be at the right size for the less volume," said Hactl managing director Mark Whitehead. "That's a priority. There's no point in carrying a higher cost base than you need."



Mr Whitehead said that when Cathay moves its operation into its new terminal early next year, the dynamic at Hong Kong International Airport will completely change.



"It's something that we've anticipated and known about for a very long time," Mr Whitehead told Atlanta-area Air Cargo World at the TIACA annual conference.



"You cannot replace Cathay with a new customer; it's too big of a player. My priority is to make sure that we maintain existing customers," he said.



Mr Whitehead said Hactl should end the year with just more than 2.7 million tonnes, which is partly a reflection of increased Asian transshipment activity. Tonnage to Europe is down, but activity to the US, which has been a bit sluggish, will end 2012 with about the same numbers as 2011, he said.

THE latest figures from the Civil Aviation Administration of China (CAAC) show that China's air cargo made a weak recovery with a year-on-year growth of 0.1 per cent in August to 455,600 tonnes after falling for two months in a row in June and July.

From January to August, the country's air freight volume totalled 3.42 million tonnes, down 4.1 per cent year on year, China Securities Journal reports.



In August, domestic cargo grew 4.9 per cent to 321,600 tonnes, while international cargo dropped 9.9 per cent to 134,000 tonnes. Despite shrinkage in international cargo, air freight has improved with a 0.1 per cent increased compared to a decrease of 1.5 per cent in June and 3.4 per cent in July.



In the same eight months, passenger volume for the first time in this year recorded a double-digit growth of 11.3 per cent.

TAIWAN's China Airlines (CAL) has joined SkyTeam Cargo to benefit from shared resources and expand its shipping network from current 84 destinations in 27 countries to 864 destinations in 174 countries.

The alliance means it can exchange business expertise with other member airlines such as Delta Cargo, China Southern Cargo and Air France Cargo and reduce its operational costs by generating higher volumes, said CAL vice president James Yu.



Delta Air Lines head Tony Charaf agreed that its extensive network with Asia, Europe, North America and Ocean, and strong exposure in the cross-strait market "will certainly enhance the network and opportunities of the alliance."



SkyTeam Cargo, the world's largest cargo alliance was founded in 2000 and has 10 member airlines throughout the world with the addition of CAL.



CAL joined SkyTeam Alliance in 2011, a grouping of 18 members comprising a passenger flight network that offers more than 15,000 daily services to 993 destinations in 186 countries.