Unit 3

Unit3

MARITIME TRANSPORT

INTRODUCING NEW INFORMATION

Ex. 1. a) Read the text and find 2 or 3 sentences that express the main idea.

SEA TRANSPORT AND THE PORT OF ROTTERDAM

International navigation holds the biggest share of about 90 per cent of the cargo carriage. After World War II when the world economy began to boom and cargo transport increased greatly (which caused serious con gestion —long waiting time of ships), specialised ships were built that cou carry different types of goods and decrease transport costs. They were con tainer ships, RoRo vessels, barge carriers, and general cargo vessels.

The capacity of the general cargo ship ranges from 5,000 to 13,000 DWT1. It has 4 or 5 holds (space for cargo stowage below deck), usually 1 or 2 tween decks and many derricks (ship's cranes) arranged in such a way that each hold can be served by at least 2 derricks.

The introduction of container ships has been a breakthrough in the reduction of the turn-round time2 of the merchant ships. The use of con­ tainers also reduces damage and pilferage of cargo and packing costs.

The port of Rotterdam has now become the most important con­ tainer main port in Europe. About 60 per cent of the containers deliv­ ered to or shipped from Rotterdam are handled by Europe Combined Terminal (ЕСТ), one of the leading container transhipment companies in the world. The restructuring process in the port started 25 years ago. The terminals were specially equipped for handling automobiles, timber and general cargo. ЕСТ designed new types of quay cranes, terminal trucks which were like a train with pneumatic tyres that can shift 10 con­ tainers in one go, straddle carriers equipped with automatic spreaders and other equipment.

In 1993 ЕСТ signed a twenty-year contract with Sea-Land whose Delta terminal uses a large number of up-to-date equipment developed by

1 DWT (deadweight) ?* полная грузоподъемность

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Unit 3

ЕСТ, for example a robot crane and vehicles for horizontal transport and container storage.

The Rotterdam Municipal Port Management together with ЕСТ are working on a new project of further development of the port which in­ cludes the construction of a number of ultramodern terminals, extensive central rail-inland shipping terminals' and distribution centres where the whole process of handling a container is computerised.

b) Re-read the text and say if the statements below are true or false. Correct the false statements.

1.International navigation started to boom long before World War II.

2.Congestion is the process of handling transport documentation at a port.

3.Specialised ships were built to decrease turn-round time of a ship.

4.A hold is a space where passengers stay during a voyage.

5.There are many derricks at the port.

6.Sea-Land is the leading transhipment company in the world.

7.Timber is not handled at the port of Rotterdam.

8.Robot cranes and vehicles for horizontal transport do not operate at the port of Rotterdam.

/. The Rotterdam port is not going to be modernised.

Ex. 2. Look through the text again and say what was mentioned in the text about:

a)the development of international navigation;

b)the structure of a vessel;

c)the port of Rotterdam.

DEVELOPING READING TECHNIQUES

Ex. 3. Listen to the text "Sea Transport and the Port of Rotterdam'1 and follow it with your eyes.

Ex. 4. Listen to the text again and repeat it sentence by sentence.

Ex. 5. Read the text aloud, approximate time of reading is 2 min.

'extensive central rait-inland shipping terminals - крупные железнодорожно-рсч- ные терминалы

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59

LEARNING NEW WORDS

Ex. 6. a) Find the words in bold type and try to guess their meaning. Check up the translation of the words in the vocabulary (p. 78). Write them out in your vocabulary.

b) Write down all the words unknown to you in your vocabulary.

Ex. 7. Translate the following phrases from the text:

1)a booming economy

2)to reduce turn-round time of vessels

3)to be equipped for handling cars

4)to shift ten containers in one go

5)rail and inland shipping terminals

6)to cause damage and pilferage to cargo

7)RO-Ro vessels

Ex. 8. Match the verbs on the left with the noun phrases on the right and translate the expressions they make into Russian:

a) to cause	1) inland shipping terminals
b) to decrease	2) stowage of goods
c) to carry out	3) damage to cargo
d) to design	4) vehicles
e) to include	5) congestion
f) to shift	6) with quay cranes
g) to equip	7) straddle carriers
h) to reduce	8) pilferage at terminals

Ex. 9. Fill in the gaps with the words in the boxes below each excerpt changing the form of the words if necessary.

1. Goods can also be transported by sea, by a shipping company. If

the goods are shipped, then

'

must be arranged from the factory to

the docks (or a quay). This can either be by road in

(or lorries)

or by rail. The shipment must be insured (covered) against loss or

in transit (while being

). Sometimes the exporter takes out

and sometimes the importer

the

depending on the terms

of their agreement. If the goods are damaged in

, the company is

by the insurance.

damage trucks transported insures transit insurance

transportation

covered

shipment

60								Unit 3
2. Someone has to pay for all these things. While goods are in
they are called freight (or cargo), so the company pays						rates (or
	costs) to the shipping company. The		is loaded at the

and for this the company pays handling charges. Also the company must

pay packaging		.
freight		cargo shipping transit charges/costs docks

Ex. 10. Complete the sentences choosing the right word and changing its form if necessary.

1.Their (share, division) in container service is not big.

2.They (divide, share) cash between the participants.

3.The road (divide, share) at this point and we must take the left turning.

4.The capital of the company (share, divide) between 3 people and each received his (share, division).

5.I don't want (share, divide) a room with anyone.

6.We'll (divide, share) the travelling expenses with you.

7.We are (accept, receive) French forwarders tomorrow and we have a good (reason, cause) to be in a hurry.

8.— Have they (receive, accept) our prices?

— If they haven't, try to find out the (cause, reason).

9.They didn't (accept, receive) our invoice yesterday.

10.The Sellers (receive, accept) FOB terms and we are going to sign a contract tomorrow.

Ex. 11. Translate into English using the correct verb.

1.К сожалению, мы не сможем принять ваши условия, (accept, receive)

2.Какова причина повреждения судна? (reason, cause)

3.Когда я был в Италии, меня прекрасно принимали, (accept, receive)

4.Он сказал, что сможет разделить ответственность за причинен­ ный ущерб, (share, divide)

5.На складе наш груз разделили на 2 части и первую уже отправи­ ли. (share, divide)

6.Я не вижу причину их отказа, (cause, reason)

7.Друзья все делили пополам, (share, divide)

8.Уверен, что он поделится с тобой последним, (share, divide)

9.В чем причина задержки груза на таможне? (cause, reason)

10. Банк не принял счет к оплате, (accept, receive)

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61

Ex. 12. Check yourself. Give English equivalents of the following Russian word com­ binations.

1)снизить транспортные расходы

2)вызвать повреждение груза

3)оборудовать для обработки генеральных грузов

4)перемещать 10 контейнеров за один раз

5)сконструировать новый тип берегового крана

6)подписать долгосрочный контракт

7)большая доля грузовых перевозок

8)снизить время оборачиваемости судна

9)место для укладки груза на судне

10)включить строительство современных терминалов

11)торговый флот

12)доставить в речной порт

13)уменьшить расходы на упаковку

REVIEWING GRAMMAR

Participle II

Ex. 13. Study the table given below.

Verb	-edflll форма слагала
produce	produced
write	written

Ex. 14. Translate the word combinations into Russian paying attention to Partici­ ple II:

1)the detectors installed last month

2)the wagon discharged yesterday

3)the joint venture set up quite recently

4)the cargo handled at our terminal

5)the train control system developed by them

6)the timetable service introduced last month

7)the railway owned by an American firm

8)the order placed with a British company

9)the price quoted

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Unit 3

10)the concession made to the new customer

11)though required immediately,...

12)when discovered

13)unless shared 50:50

14)if caused by congestion

15)while decreased considerably

16)though held at the end of the month

17)if equipped for handling

Ex. 15. Change the following sentences using Participle II as in the model.

Model:	containers which were manufactured =
	containers manufactured or manufactured containers

1.The containers which were manufactured by the firm are easy to handle.

2.The deal which was discussed yesterday was not profitable.

3.The discount which the firm offered did not suit us.

4.The container which was delivered yesterday has not yet been unloaded.

5.The first consignment which was handled on Friday has not been dis­ patched yet.

6.The detectors which were replaced by the manufacturer were defective.

7.The prices which were reduced by the firm will rise again next month because of inflation.

Ex. 16. Translate the following sentences into English.

1.Терминал, построенный в прошлом году, уже не является на­ шей собственностью.

2.Документы, подписанные директором, на столе. Вы можете взять их.

3.Оборудование, установленное в прошлом месяце, отвечает но­ вейшим мировым стандартам качества.

4.Совместное предприятие, созданное совсем недавно, работает очень успешно.

5.Сведения, записанные Вами по телефону, не совсем верны.

6.Сборный груз, доставленный нашей фирмой грузополучателю, прибыл из Германии и Голландии.

7.Запасные части, обещанные вами, так и не были получены.

8.Автомобили, выпускаемые этим заводом, отвечают современ­ ным требованиям.

9.Транспортные средства, используемые на этих маршрутах, ус­ тарели.

Maritime Transport	63

10.Полуприцепы, ввезенные из Франции, начнут работать на на­ ших маршрутах в следующем месяце.

11.Хотя груз был отправлен вовремя, он прибыл с опозданием.

12.При своевременном обнаружении неисправности легко устра­ няются.

13.Если потребуется, запасные части могут быть отправлены не­ медленно.

14.При ограничении финансирования компании трудно рассчи­ тывать на успех.

15.Ожидается, что рост торговли приведет к более высоким пока­ зателям на рынке транспортных услуг.

Ex. 17. Complete the sentences using correct tense and voice forms of the verb.

1.RonCon (to manufacture) containers since 1980. Their containers (to use) by many transport operators last year.

2.Our department (to develop) robot cranes since we first (to see) them at the exhibition Logistics and Transport-98.

3.Ten containers (to shift) in one go at the port of St. Petersburg.

4.They (to pack) chemicals for 2 hours, I think everything (to pack) tomorrow.

5.— Any one (to call) me yesterday?

—No, there (to be) a fax for you to arrange insurance of the consign­ ment for Chicago.

6.The tyres (to take) over at the port by our freight forwarders.

7.The warehouse (to equip) with up-to-date cranes (design) by the Dutch manufactures.

8.The delay in delivery of the equipment (to cause) by the congestion in the port.

9.Transport costs (to decrease) if port equipment (to modernise).

10.— You (to arrange) unloading?

—Certainly, in fact the vessel (to unload) now. It (to complete) in 3 hours.

Ex. 18. Put in prepositions where necessary and translate the sentences into Russian.

1. The damage occurred1		transit. The cause		damage is
being discussed now.
1 to occur — происходить, случаться

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Unit 3

2. He says that the freight forwarders will take _

_ the goods

the port

loading.

3. I don't share _

_ your point

view

the future develop­

ment

transport

Russia.

4. There were serious congestions

the port

Novorossiysk

which caused delay

discharge.

5. The warehouses are not equipped

up-to-date cranes so far

that is why loading takes much time and causes

delays.

6. — Who's arranged

their visit

the manufacturing plant?

— They arrived

the invitation

our Board of D i ­

rectors.

7. The new terminal will be specially equipped

handling tim­

ber. The process

reconstruction is not completed yet.

8. The transport documentation will be handled

the forward­

ers

behalf

the manufactures.

9. The cargo was sent

the port

road.

10. The goods have been packed

2 containers

our ware­

house and sent

the port.

Ex. 19. Put in articles where necessary and discuss the text.

Blue Express Ltd. started

sea carriage in

North Eu­

rope in 1986 when they had only 2 vessels. Today

company operates

4 modem vessels in

line.

latest addition to

fleet is

6100 dwt, multi-purpose m/v Christina, launched1 in

September this

year.

vessel was

German-built and flagged and can take 341

containers and is capable of

carrying

conventional and

Ro/Ro cargo.

service operates every 12/14 days loading in,

Antwerp and

Harwich for

discharge in

Tripoli.

new

service has recently been added with

monthly vessel calling at2

Barcelona and Malta for

discharge.

company will be pleased

to offer

new customers.

advice and _ _ assistance to

Ex. 20. Translate the following sentences into English.

1.Если они не включат транспортные расходы в общую стоимость, мы не сможем принять такие условия.

2.Судоходство начало развиваться еще в XIX веке, а бурно расти после Второй мировой войны.

1to launch — зд. спускать на воду

2to саВ at — зд. заходить в порт

Maritime Transport	65

3.Сейчас пересматриваются многие нормы, сооружаются новые причалы', что дает возможность избегать скопления судов и во­ время загружать и разгружать их.

4.Новый терминал, оборудованный современной робототехни­ кой, начнет работать в порту в начале следующего года.

5.Использование контейнеров, закупленных у ведущих произво­ дителей в Голландии, снизило время обработки груза.

6.Стрела крана сломалась, что явилось причиной порчи груза.

7.Нам бы хотелось иметь дополнительные копии таможенной декларации и коносамента, подписанные вами.

8.У нас было слишком много работы, и мы не смогли обработать всю документацию, полученную вчера вечером.

9.Я звоню Вам уже полчаса. Вопрос очень срочный. Дело в том, что в графе, озаглавленной «Вес», опечатка.

10.Они сделали нам уступку — снизили плату за перевозку леса.

LEARNING ТО LISTEN AND ТО SPEAK

Ex. 21. Listen to the telephone conversation and say which of the Shipping docu­ ments Mr. Semenov is filling in:

a)Customs Declaration

b)Certificate of Origin

c)Bill of Lading

d)Waybill

e)Insurance

EXPORT-IMPORT DOCUMENTATION

Mr. Semenov, who works for the Freight Forwarding Agency, is calling Mr. Brockett, General Manager of a tyre factory.

Brockett: Hello, Brockett here.

Semenov. Hello, Mr. Brockett. That's Semenov again. Brockett: What's the problem?

Semenov. It's about that consignment of tyres for Bryansk. I want to make sure I'm putting down the correct information on the forms. I'm looking at the section headed "Number and description of packages". Am I right in saying it's five thousand (5,000) tyres? Gross weight...

1 причал-berth

g-899

66

Unit 3

Brockett: Gross weight is 115 tons. FOB value' is $100,000.

Semenov: Thanks, I'll write that down and I think you'll be sending the goods by road to the Town Docks. They'll go to the container freight station. Right?

Brockett: Yes. The Transworld Shipping can take over from there. Semenov: Let me make a note of that. Place of acceptance of cargo by

Transworld container freight station, Town Docks. Transworld will pack the goods into the container, and unpack at destina­ tion.

Brockett: I also want Transworld to handle the documentation. They can prepare the Bills of Lading and Customs Declaration on our behalf.

Semenov: How about insurance?

Brockett: They can arrange our insurance policy. But try to get a low pre­ mium for us, Mr. Semenov. Oh, by the way, remember that we want extra copies of the Bill of Lading.

Semenov: I've already noted that. Now, I'll let you get back to your work. Brockett: Thanks. I'm really very busy at the moment. Still call me if you

need me.

Ex. 22. Listen to the dialogue again and say if the following sentences are true or false. Correct those which are false.

1.Mr. Semenov is the General Manager of a tyre factory.

2.The tyres for Bryansk were sold on CI F terms.

3.Freight Forwarders were dealing with the packing of tyres.

4.The consignment of tyres was not insured.

5.The manufacturing plant did not need any copy of the Bill of Lading.

6.The General Manager was not very busy.

Ex. 23. Say what you remember from the conversation about:

1)the sold consignment of goods;

2)the mode of transportation of the tyres;

3)the documents used during the carriage.

Ex. 24. Listen to the conversation again and repeat it sentence by sentence.

FOB value - стоимость груза с учетом условий поставки FOB (free on

board), при которой продавец оплачивает доставку груза в порт и погруз­

ку на судно

Maritime Transport	67
Ex. 25. Reorder the conversation.

Semenov: It's about that consignment of tyres for Bryansk. I want to make sure I'm putting down the correct information on the forms. I'm looking at the section headed "Number and description of packages". Am I right in saying it's 5,000 tyres? Gross weight...

Brockett: Yes. The Transworld Shipping can take over from there. Semenov: Hello, Mr. Brockett. That's Semenov again.

Brockett: What's the problem?

Semenov: Let me make a note of that. Place of acceptance of cargo by Trans­ world container freight station, Town Doci(s. Transworld will pack the goods into the container, and unpack at destination.

Brockett: Gross weight is 115 tons. FOB value is $100,000.

Semenov: Thanks, I'll note that down and I think you'll be sending the goods by road to the Town Docks. They'll go to the container freight station. Right?

Ex. 26. Complete the conversation.

1.— Brown and Co. Good morning.

2.- What's the problem?

3.- Are the goods going by truck?

4.- How about insurance?

5.- Who'll take over the goods at the port?

6.- Could you make us a concession?

7.- What terms of delivery can you offer?

Ex. 27. Have a conversation with your partner using the information below.

Your company is planning to import some components for Scania trucks from Sweden. You've got an Import License for the volume of components you require. Contact Forwarding & Logistics (a large Russian Transport and Logistics Company).

Find out what shortest possible time for delivery of such cargo they can offer and what shipping documents are required in case you would like to cooperate with them.

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Unit3

Ex. 28. Role-play a conversation with your partner choosing one of the following subjects.

1.You want to know why the vessel is arriving at the port of discharge with delay and what is the cause of delay.

2.You want an extra copy of the Bill of Lading.

3.You want your cargo to be loaded on Friday afternoon.

4.You want to add one more package to the goods to be loaded tomorrow.

5.You want to have an extra copy of the Insurance Policy.

LEARNING TO WRITE

Ex. 29. Hour company deals with selling and buying terminal tracks and port equip­ ment. Yon receive much e-mail every day. Tell your boss that among the spam you receive every day you've got a letter that may be of interest to

him/her. Tell him/her what it is about. Ask him/her if he/she is interested in taking part in the exhibition and whether he/she would like to look through the letter.

Dear Colleague,

MariChem Worldwide, the 12th International Conference and Exhibition on Chemical Transport and Storage, will be held at the KolnMesse Congress Centre in Cologne, Germany on 2-4 December this year. The meeting will take place in the heartland of Europe's chemical industry and will be the world's leading in­ dustry event for all those dealing with the international transport and storage of chemicals.

The enclosed Newsletter # 1 provides1 comprehensive2 informa­ tion on both the MariChem conference programme and the ex­ hibition which once again promises to be one of the largest col­ lections of industry equipment suppliers and service providers ever gathered in one place.

The impact3 of markets on overland transport options will also fea­ ture in the sessions on tank containers, road tankers and rail ser­ vices, reflecting the fact that chemical producers are expected to play a greater role at this year's event than any previous MariChem.

1 to provide — обеспечивать

-comprehensive — обширный: всесторонний impact — воздействие

Maritime Transport	69

Please use the enclosed forms to register as a conference dele­ gate or to receive further information on the exhibition. If you have any specific questions, do not hesitate to contact us direct. We look forward to seeing you in Cologne.

Yours sincerely

Howard Phillips Managing Director

Ex. 30. Read the letter again and say what the letter says about:

1)the exhibition in Cologne;

2)the problems which will be discussed at the conference:

3)the equipment to be on display at the exhibition.

Ex. 31. You represent a manufacturing company which wants to take part in the exhibition in Frankfurt on 16th18th February 200... and display terminal trucks you manufacture.

Write a letter to the organizers of the exhibition, tell them about your firm and your intention to participate and order the exhibition space you need. Inquire them if they can provide accommodation for your personnel who will work at your pavilion.

Ex. 32. Role-play a telephone conversation with Howard Phillips, ask him to send you a detailed program of the Conference.

LEARNING TO READ AND ANALYSE

Ex. 33. Read the advertisement and say who it is intended for.

A L L T H E WAY, EVERY O T H E R DAY

Every other day our container vessels sail from Rotterdam, Antwerp, Southampton, Felixstowe, and Le Havre to the Iberian Peninsula and Morocco and vice versa. Our Iberian destinations are Lisbon, Leixoes and Vigo. The Morocco destination is Casablanca.

Our experience and up-to-date fleet guarantee a fast and reliable ship­ ping of your 20 ft and 40 ft containers. Wfe take care of your cargo and you can count on the utmost care and attention.

H O L L A N D M A A S SHIPPING BV

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Unit 3

Ex. 34. Read the advertisement again and answer the following questions.

1.What services does the company offer?

2.Where do they carry goods?

3.How often do their vessels sail?

Ex. 35. You represent Holland Maas Shipping BV. Describe the services of your company to a potential customer. Your customer would like to take their cargo to Lisbon. Tell them about your freight rates.

Ex. 36. Read the texts given below and say whether they are:

a)advertisements

b)passages from a textbook

c)encyclopedia articles

d)newspaper articles

RUSSIA WARNS SHIPOWNERS

The Russian government has warned1 its smaller shipowners that they will not be able to send their vessels to Western sea ports when new international sea safety2 rules are introduced later this year.

"Small lines must spend between US $3 m and US $5 m (£1.9 m — £3.1 m) to certify1 each ship and its crew4 in accordance with the new rules. It is big money for them," a Russian Transport Ministry official said.

Another ministry official said that about 70 Russian shipping lines have a very weak financial position, "i n total these companies own a fleet of 100 vessels, but they have little chance of survival5 ," he said.

Sergei Plekhanov, head of the ministry's maritime department, said that most of these lines would go bust.

Big lines are planning to certify their vessels and crews. " Private lines Novoship and Sovkomflot have already gone through the procedures," he said, adding that others were preparing to do it by July 1.

to warn ­ предупреждать safety — безопасность

5 to certify ­ сертифицировать * crew — команда судна

s survival — выживание

Maritime Transport

RUSSIA SET TO BUILD T H R E E PORTS IN GULF by Vikenti Rom in Moscow

Russia is to develop three sea ports in the Gulf of Finland' on the Baltic Sea, with a US $210 m (£ 124 in) loan2 from the World Bank. A government official said these ports would begin to handle cargo in 2012 and that con­ struction was already under way. Ust­Luga port, being developed at the total cost of US $ 1.1 bn (£650 m) will have capacity to handle around 35 m tons of coal, general cargo, timber and containers annually3. Primorsk port will cost US $604 m (£355 m) and will handle 45 m tons of petroleum, oil products and natural gas per year. The third port, Batareyny, will handle petroleum exports. According to Russia's Transport Ministry, of the country's total an­ nual import/export freight of 160 m tons, 70 m tons goes through the ports of the Baltic Sea and the Ukraine. The experts said that the turnover4 may in­ crease by 50 per cent by 2010, with most of the growth at the Baltic Sea po

Ex. 37. Read the texts again and answer the questions:

1.What safety rules did the Russian government introduce?

2.Why could most small shipowners go bankrupt?

3.How many ports are going to be built in the north of Russia?

4.Which of them will handle oil exports?

5.Is it necessary to build new ports in Russia?

Ex. 38. Say what you remember from the articles about:

a)new safety rules introduced by the Russian government;

b)the construction of new ports.

Ex. 39. Read the following texts in order to determine the main idea of each of them. Find the text most interesting for you and prepare a detailed plan of it. Speak i the problems touched upon in the text you have chosen using your plan.

S T E A M S H I P LINES

The U.S. water transportation industry consists of steamship lines in­ volved in deep sea transportation, as well as services that move cargo through lakes and inland rivers.

1 the Gulf of Finland — Финский залив

2loan ­ заем

}annual — ежегодный

4 turnover ­ оборот

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Unit 3

For deep sea transportation, rising trade volumes are expected to lead to a stronger performance and higher demand .U.S. -owned steamship lines face competitive pressures from foreign owned lines, and as a result have been involved in mergers of strategic alliances. For domestic shipping, longterm improvements will depend on the movement of additional tonnage that could result from current agricultural subsidy and increased oil ex­ ports. However, declining domestic petroleum production, and reliance on pipelines for petroleum movements would have a dampening effect on the growth of the domestic segment of the industry.

Shippers are always looking for the lowest rate and the most efficient method of transporting their cargo. The ocean containership industry has met that challenge by building larger and faster containerships. The ship­ per could be the winner, but only if the rest of the transportation and dis­ tribution chain is able to make equally impressive cost-effective changes, particularly at the intermodal connecting points where two or more modes meet.

Available data on vessels on order demonstrate the trend towards great­ er use of larger vessels. A total of 38 post-Panamax (larger than can use the Panama Canal) vessels are in operation, 54 are on order and the construc­ tion of 27 additional vessels is under consideration. In addition, 60 Panamax size (maximum size that can transit the canal) containerships are on order, and 21 more will probably be ordered in the next few years.

Unless the entire transportation and distribution system enjoys equal economies of scale in its operations, the advantages gained from the larger ships will not be fully realized.

To accommodate the requirements brought on by bigger, faster ships, some of the largest carriers are building marine terminals that incorporate the latest in intermodal concepts and technologies. American Pacific Lines, for example, is constructing an on-deck rail operation designed to im­ prove the cost efficiency and reliability of intermodal transfer operation. Other terminal operators, some of whom may or may not be connected directly to one of the carriers, are developing and operating what could be considered the so-called "steamless terminal". These terminals allow the container to move directly off the ship and out the front gate without stop­ ping along the way in the terminal, based on pre-clearance of documenta­ tion via EDI (electronic data interchange). This form of just-in-time (JIT) type of movement parallels very closely what is already becoming the stan­ dard for cargo shipments in other parts of the logistics chain.

Conventional containerships can stih take advantage of existing facil­ ities. Niche carriers, with more traditional-sized vessels (2,000 to 4,000

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TEUs1 ), will continue to call at ports that are not capable of handling these very large containerships. This is especially true on trade routes that need to cater to consumer requirements for more frequent and smallervolume shipments. Meanwhile, the potential exists for faster, but smaller containerships, such as FASTSHIP, capable of crossing the North Atlan­ tic in three and a half days. For the shipper, this could mean a reduction in inventory time and cost, especially important for high-value products such as electronic components, and automobiles.

Containership carriers are also looking at combining or sharing opera­ tions and other activities to reduce operating costs through mergers or the development of consortiums and partnerships. These working agreements include sharing vessels space, marine terminal facilities and equipment, and marketing staffs to reduce duplication of assets and operation costs. In terms of price, however, they would still have to compete with each other. These consortiums and alliances are in direct competition with carriers that com­ pete independently or are members of the now-threatened conference sys­ tem, that was originally established to stabilize vessel-use and avoid ruinous competition. For the shipper, these agreements have very little effect on the actual movement of the cargo because the carrier and the bill of lading that it issues will control the level of service and reliability.

EXPANSION TO DOUBLE CAPACITY

Interporto Rivalta Scrivia Spa (IRS) is considering doubling its con­ tainer handling capacity through a facility designed for 300,000 teu plus the ability to handle swap bodies.

The IRS terminal is at Alessandria (between Milan and Genoa in Italy). For the purpose of expanding its capacity, IRS has set up a joint venture called "Terminal Europe" which is 46% owned by IRS, 27% by the IRS parent company Fajioli group, and 27% Gavio, to build an exist­ ing infrastructure amounting to 750,000 sqm with 8 rail sidings of900 m, each equipped with two transfer cranes. The investment planned for the "Terminal Europa" project is estimated at EUR 50 million.

The start of construction, originally planned for late 2004, was post­ poned to 2005 since IRS was looking for new partners in addition to Gav­ io, a renowned logistics operator who has its own main facility just 3 km away from IRS. IRS would consider both domestic (Italian) and foreign partners, be they in the rail sector or not. The IRS managing director says that they are not rushing construction since at present the existing con-

1 TEU (transport equivalent unit) - вес, эквивалентный 20-футовому контейнеру

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Unit 3

tainer terminal has 40% spare capacity and the site where the new facility is planned is already IRS property, so there will actually be no hindrance to complete it within about a year or two.

Much depends on the ability of the ports of Genoa to bring IRS the expected additional container throughput. The new facility will not only cater for maritime traffic. Considering the ideal geographic position at the crossroads of the Lisbon-Kiev corridor at the Genoa-Antwerp/Rotterdam axis, IRS also aims to become a transhipment node on both the east-west and north-south routes, benefiting from flourishing trades expected from the recent EU expansion to 25 members.

Meanwhile, IRS is concentrating on the continued development of its core business, warehousing and logistics, where it is currently working at 95% capacity.

IRS describes itself as a multipurpose logistics hub, unique in its capacity to offer integrated logistics solutions thanks to its extensive storage area (2 million sqm and 300,000 sqm of closed warehouses) and organisation. IRS can offer complete management of the distribution cycle through the know-how, specialised plants and state-of-the-art warehouse management information system with tailored services to match any client's needs.

IRS was established in 1966 with the aim of creating an inland extension to the port of Genoa to rapidly clear goods discharged on the piers. It is located at the intersection of three motorways as well as the Alessand ria- Vbghera and Novi-Tortona railways.

The trend to outsource services in logistics allowed the management to make important decisions such as converting the infrastructure into a multimodal hub where interport services are integrated with redistribution of products. Of the original 150,000 sqm in 1966, IRS has expanded to double its indoor warehousing area and is looking forward to further growth.

THE INTERNATIONAL OCEAN TRANSPORT INDUSTRY

IN CRISIS

Assessing the Reasons and Outlook

In the course of the World Bank's assistance programs for developing countries fundamental and continuously ongoing changes in the structure of trade markets and the organization of the related service industries have been identified. Particularly the sea-trade markets and the international ocean transport industry seemed to undergo substantial change. Freight origins and destinations shifted much more rapidly than in the past, types

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of cargo and their forms of packaging kept changing. These trends became more and more pronounced since the beginning of the 1980s. The Bank's fust assessment of the causes and effects of such development concluded that considerable changes in international manufacturing and product marketing practices have tended to alter the profile of demand for ocean transport in significant ways. A further conclusion was that technological progress had enabled shipowners and operators to drastically revamp their service offerings and networks in response to changing ocean transport demand.

Towards the end of 1992 the world merchant fleet had a total carrying capacity of about 657 million tons (dwt), and almost 69 million dwt were on order with shipyards in 40 different countries. About 40 percent of the ocean transport activities were in the oil trades, including crude and petroleum products; another 40 percent was serving the key dry bulk trades, including iron ore, coal, and grain, as well as the minor bulks, such as agricultural and forestry products. Only one-fifth of the registered tonnage was engaged in the general cargo trades, which also comprises the sea carriage of containers.

The consequence of this market structure with preferences to liquid and dry bulk cargoes was that the majority of vessels was operating either on a charter or tramp basis, which is common practice in the bulk trades. In the general cargo trades the conference-based liner segment was much reduced in comparison with previous years. The phenomenon confirms the earlier recognizable trend toward independent action which has been increasingly adopted by different carriers, particularly in the container sector. Under this type of arrangement carriers negotiate (freight) service contracts directly with shippers. By doing so, they by-pass existing conference rules for specific trade routes. Such service contracts often span longer periods, i.e. they are usually not limited to one shipment, and are widely considered to be more advantageous to shipper and carrier alike than conference regulated ocean transport.

Continuing a trend that could already be observed during the 1980s, 1992 was a further concentration of fleet ownership. Shipowners in five countries - Greece, Japan, the USA, Norway, and Hong-Kong - controlled over 50 percent of the world merchant fleet. But the present pattern of ship registration and 'flags flown' does not reflect the true state of ownership. Almost half of all merchant ships which were registered in 1992 flew so-called 'Flags of Convenience' (FOCs) of countries which provide shipowners with substantial benefits. These benefits entail tax allowances or holidays, freedom to crew ship with low-wage labor, regardless of na-