The paradoxes of port productivity
This year, the port of Tianjin revealed that automation had provided a boost to the ...
FDX: ABOUT USPS PRIVATISATIONFDX: CCO VIEWFDX: LOWER GUIDANCE FDX: DISRUPTING AIR FREIGHTFDX: FOCUS ON KEY VERTICALFDX: LTL OUTLOOKGXO: NEW LOW LINE: NEW LOW FDX: INDUSTRIAL WOESFDX: HEALTH CHECKFDX: TRADING UPDATEWMT: GREEN WOESFDX: FREIGHT BREAK-UPFDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK
FDX: ABOUT USPS PRIVATISATIONFDX: CCO VIEWFDX: LOWER GUIDANCE FDX: DISRUPTING AIR FREIGHTFDX: FOCUS ON KEY VERTICALFDX: LTL OUTLOOKGXO: NEW LOW LINE: NEW LOW FDX: INDUSTRIAL WOESFDX: HEALTH CHECKFDX: TRADING UPDATEWMT: GREEN WOESFDX: FREIGHT BREAK-UPFDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK
With China’s domestic ro-ro capacity unable to match the deluge of its car exports, DP World has implemented a new method of stacking cars, three-to-a-container, in order to meet demand at Yarimca, Turkey.
Traditionally, cars in containers are limited to two per teu, or four in a 40ft, but DP World Yarimca claims to have brought down the cost of car imports by using racking to increase the number of slots.
It has effectively “allowed DP World to create a new car import terminal out of thin air”, explained Kris Adams, DP World Yarımca CEO.
“Our terminal at Yarimca, which has not traditionally moved vehicles, is now becoming a key hub for new vehicles entering the market. The new innovative solutions we have introduced will help Chery Automotive establish itself as a significant supplier in this market and in neighbouring countries, offering economic benefits to Turkey while also helping consumers get their new cars more quickly.”
The system has resulted in the import of some 10,000 Chery SUVs from China – some 110,000 vehicles were sold in Turkey in July, a 37% year-on-year increase.
State-owned Chinese carmaker Chery has for some time been considering opening its own production plant in Turkey; in April, CEO Yin Tongyu told Turkish newspaper Hürriyet it had “grand ambitions” for the country, with a plan “…to manufacture cars locally and export them to Europe.” He added: “While our slogan has been ‘In China for China’, one day we hope to proudly say ‘For Turkey and Europe in Turkey’.”
DP World also said its cars-in-containers strategy would allow it to play an important role in Chery’s European expansion. Rashid Abdulla, DP World Europe MD, said: “The automotive industry has experienced significant changes and supply chain challenges in the last few years globally, and in Turkey that ranged from microchip to ro-ro capacity shortages.
“I’m proud that our team could implement an alternative solution that helped to ease these challenges – and that we played a key role in the expansion of Chery Automotive into the Turkish market.”
Although Chery SUVs are predominantly fuel-powered, with some hybrid models, the influx of battery-electric vehicles, many manufactured in China, has been responsible for an epidemic of lithium battery fires on ro-ro vessels in recent months, including onboard the Fremantle Highway, in the last week of July.
According to Loadstar sources, the cars-in-containers trend is unlikely help address this, rather switching the risk to containerships, already beset by problems of their own. One expert even said the trend could result in more fires, rather than fewer, “…due to the cellular stacking of the containers onboard… if one container goes off (especially under deck) it will be very difficult to reach to put out a fire”.
Peregrine Storrs-Fox, TT Club risk management director, said: “Automakers are predominantly looking at how we can get more charge, how can we charge them faster – but they are not engaging with the transport and logistics industry, or fire responders, to discuss how that impacts others who are going to be involved [in the EV transition],”
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