KCT excels as a transshipment hub

Peter Richards, general manager of Gulftainer oversees container handling operations at Khorfakkan Container Terminal (KCT) and Sharjah Container Terminal (SCT) in the Arabian Gulf. Throughput amounted to a combined 2.15m teu last year, of which SCT accounted for 228,170 teu and KCT 1,929,729 teu, representing growth of 23.9% at the former and 6.06% at the latter, with an overall boost in traffic across both facilities of 7.7%. The growth experienced at KCT was slightly less than expected due mainly to CSAV Norasia's decision to bypass the Middle East with a concomitant loss of transshipment containers in KCT.

According to Richards, three-quarters of all boxes handled at KCT in 2005 were rotated in and out by sea, while just 1% of SCT's traffic base was transshipment. This major difference in client portfolio is best explained by the location of the two facilities within the Sharjah Emirate: to access SCT, ships have to pass through the Straits of Hormuz, while KCT lies entirely on the Gulf of Oman.

'The ratio of transshipment to local cargo has changed very little over the last three years at either port, although forecasts suggest that transshipment volumes will continue to grow throughout 2006 and 2007.' said Peter Richards. 'This is due to various factors, although the high cost marine fuel still makes it attractive to drop Arabian Gulf cargo outside the Hormuz Straits, while the present poor productivity and inherent restrictions at ports in both Pakistan and India prevent against sending the latest generation deep sea vessels there.'

Indeed, KCT is of vital importance as the major transshipment port in the region for three of the world's leading shipping lines (CMA-CGM, UASC and Hanjin/Senator).

Although Richards concedes that competition does come from both Dubai and Salalah, each has distinct disadvantages compared to KCT. Dubai, for example, is geographically located within the Arabian Gulf and is experiencing distribution difficulties, while the continuous rising costs of doing business there has prompted several lines to investigate alternatives. Salalah, which remains predominantly a Maersk Port, requires a more expansive feeder network to cover the much longer routes into the Gulf, Iran, Iraq, Pakistan and India. This, he notes, is why it is an ideal location for such a giant as Maersk, which operates countless interconnecting services, but un-suitable for the majority of the other lines.

Richards emphasizes that a successful transshipment port can only survive long term by being economically viable. To achieve this, attractive rates for box handling do have to be on offer. However, it is therefore vital to guarantee high crane productivity rates and also turn vessels around in record times, whilst ensuring that costs are minimized.

'The provision of feeder services in our ports is very competitive.' added Richards. 'Our people continually log rates of 36 moves per hour per ship-to-shore gantry chance. This is despite the fact that ship handling operations have to be adapted to take into account differences in cargo stowage plans and individual ship characteristics (and the resulting crane split sequence). However two of our major customers (UASC and CMA-CGM) recognize KCT as holding their operational productivity records.'