Market trends in marine cement terminals

The amount of cement being handled at cement transshipment terminals all around the world is increasing, although the global seaborne cement trade is declining. The background facts and their significance for the international plant engineering business for import terminals is discussed in this report on the basis of the latest market figures.

1 Introduction

The global cross-border trade with cement and clinker currently only makes up 4.5 % of the worldwide cement production output. In 2012, the quantity involved was 145 million tonnes (Mta) after just under 170 Mta in 2007, prior to the global economic crisis. Since that time, a lot has happened. Some of the leading import markets in the USA, Spain, United Arab Emirates and Nigeria have collapsed, either due to the economic crisis or to their own booming production capacities. Other markets, such as those in Bangladesh, Russia and Iraq have shown a positive development. The problem...

1 Introduction

The global cross-border trade with cement and clinker currently only makes up 4.5 % of the worldwide cement production output. In 2012, the quantity involved was 145 million tonnes (Mta) after just under 170 Mta in 2007, prior to the global economic crisis. Since that time, a lot has happened. Some of the leading import markets in the USA, Spain, United Arab Emirates and Nigeria have collapsed, either due to the economic crisis or to their own booming production capacities. Other markets, such as those in Bangladesh, Russia and Iraq have shown a positive development. The problem is to visualize this on the basis of available statistical data. Most market reports and the statistical data published by the countries, the cement associations and the cement companies cumulate the quantities for cement and clinker. However, trade with cement and clinker takes place in accordance with very different specific principles. Moreover, the import and export terminals for cement and clinker are also very different from each other and therefore hardly comparable.

2 Overview of global cement transportation

Fig. 1 shows the development of global cross-border trade with cement and clinker since 2007 with a forecast for 2013. From 2007 to 2009, quantities declined from 169 Mta to 138 Mta, corresponding to a minus of 18 %. In the USA alone, the decrease in the case of cement was 15.1 Mta. In 2010, a slight recovery of the worldwide markets was felt, but the level of 2008 will not be re-achieved until 2013. Together with the market data, the graph also shows the amount and percentage of clinker in the trade figures, which fell from 38 Mta (22.5 %) in 2007 to 29 Mta (21.0 %) in 2009, a drop of 24 %. In the meantime, they have risen again to 34-35 Mta (approx. 23.5 %). The difference between the clinker trade quan-tities indicated by the bar diagrams and associated percentages (in parentheses) and 100 % represents the cement trade quantities and associated cement percentages.

Fig. 2 depicts the cement import and export figures as well as the differences between importation and exportation. That there are differences between the import and export figures is due to the fact that the countries and other bodies publishing data mostly state precise export figures but uncompleted import figures [2]. Cement imports are undertaken not only by cement companies but also by independent importers or companies of the concrete industry for their own requirements. This causes corresponding gaps in the statistical recording. The cement export figures therefore provide more exact information about the actual trade in cement. The graph shows that exports fell from 131 Mta in 2007 to 109 Mta in 2009 (-17 %). Since that time, exports have shown a slight upward trend with figures varying between 107 and 115 Mta. The difference between exports and imports have become bigger and bigger: starting with an original difference of 5 Mta, it has now reached 23 Mta, i.e. in 2013 an imported quantity of approx. 20 % remains unaccounted for.

The amount of exported cement transported by ship (incl. the Canadian Great Lakes) in the overall cement export volume is shown in Fig. 3. In 2007, the quantity transported by ship was 97 Mta or 74 %. In subsequent years, this amount declined, mainly as a consequence of the collapse in markets in the USA, Spain and Nigeria, to 70-71 % [3]. Since 2012, a slight increase in maritime transport has been apparent. The market is particularly characterized by surplus cement capacities in the exporting countries, demand for cement and relatively high cement prices in the importing countries, and by the freight charges for maritime transport. There can be large differences between neighbouring countries, such as those currently existing between the United Arab Emirates (UAE) and Saudi Arabia. While cement demand is stagnating in the UAE, where there is also a high surplus capacity, so that prices are in the order of 54.5 US$/t (1st quarter of 2013), Saudi Arabia‘s cement demand rose by 10.7 % in the 1st quarter of 2013 compared to the preceding year, and current cement prices are around 68 US$/t. 

However, the market for marine terminals is influenced not only by cross-border cement exports, but also by the ship transport of the various countries‘ domestic markets. Domestic transportation is not only handled by barges, but also by oceangoing cement ships, for example domestic cement transportation in Japan, South Korea, Taiwan, Australia, Vietnam and Indonesia. Fig. 4 presents data for all cement transportation by ship, including percentage figures for exportation and domestic markets (but not including market data for China). The graph shows that meanwhile the amount of cement transported by ship for domestic markets is almost on the same level as exports. The overall market has grown from 142 Mta in 2009 to 160 Mta with a compound annual growth rate (CAGR) of 3.0 %. At present, domestic markets make up 48-49 % of the overall market quantity.

According to the latest information, around 420 ships are available for maritime transportation of cement. Of these, approx. 315 ships have a capacity larger than 2000 dwt (deadweight tonnage). 22 % of these, i.e. slightly more than 90 ships, are self-unloading cement transport ships, and 330 ships are so-called bulk vessels requiring onshore ship loading equipment for discharging the cement. Most of the self-unloading ships are fully booked by long-term charter, which is partly due to the fact that very few new ships of this type, or conversions, have been built in the last 10 years. For the last two years, however, a slight upward trend has been discernible in the capacities of self-unloading ships.

Bulk vessels are fundamentally classified into 4 size categories: Handy ships with up to 39 999 dwt, Handymax with 40 000-59 999 dwt, Panamax with 60 000- 79 999 dwt and Capesize with 80 000 dwt and more. Handy and Handymax ships are mainly used for cement transportation.

3 Technologies for marine import terminals

Depending on the required annual handling capacity and ship sizes, various types of terminal system are employed [4]. Cement import terminals show the greatest diversity with all types of available technology (Fig. 5). Nowadays, three sizes of terminal are used, depending on the amount of cement to be handled:
» Small terminals for up to 100 000 tonnes per year
» Midsize terminals for 100 000 up to 1 000 000 tonnes per year
» Large terminals for more than 1 000 000 tonnes per year
For self-unloading ships (Fig. 6), no onshore ship unload-ing equipment is required. If such ships are equipped with so-called screw pumps or pressure vessels, onshore conveying equipment for supplying the storage silos can also be dispensed with. In contrast, both systems i.e. ship unloaders and conveying equipment are needed onshore if bulk vessels are to be served. Depending on requirements, various cement storage and subsequent cement dispatch systems are available.
3.1 Ship unloading and conveyance systems
Ship unloading technology is a key technology for cement import terminals. In recent years, both mechanical and pneumatic systems have proven effective. Both systems have their advantages and disadvantages. However, mechanical ship unloaders achieve higher unloading capacities, meaning shorter turnaround times and thus reduced charter costs for the ships. The difference in power consumption between mechanical and pneumatic ship unloading systems grows larger in line with increasing unloading capacities (Fig. 7) [5]. For this reason, pneumatic ship unloaders are predominantly used for ship sizes of up to 20 000 dwt and have smaller unloading capacities of below 600 t/h, i.e. are mainly installed at small terminals (Fig. 8). Pneumatic systems are generally road-mobile or travel on a harbourside rail system. There is limited potential for technological advancement.

Mechanical (continuous) ship unloaders are supplied in a very wide range of sizes. They can therefore be employed for all sizes of terminal and ship and have unloading capacities ranging between 400 and 1500 t/h. Depending on the size of ship, road-mobile mechanical ship unloaders are available for 5000 to 15 000 dwt (Fig. 9), while larger, so-called high-performance ship unloaders (Fig. 10) handle ship sizes of 40 000 dwt and more. The mechanical systems employed for cement are always equipped with screw feeders and screw conveyors that have an energy consumption of 0.5 kWh/t. The technological configuration of all sizes of mechanical ship unloaders is more or less identical. Modern high-performance ship unloaders are usually of modular design, having a lightweight steel structure. To assure a constant material unloading rate, the systems are equipped with speed-controlled extraction screw conveyors [6]. There are also numerous innovations in the technical details.

Conveyance from the ship unloader to the storage silos can also be undertaken by mechanical or pneumatic systems. These involve defined material transfer points, as the ship unloader normally travels along the ship from cargo hatch to cargo hatch. For the transfer points, at which the material is fed to the actual conveyor units, pneumatic troughs have proven particularly effective. The nature of the subsequent conveying equipment mainly depends on the conveying distance, the delivery height and the required throughput. For longer conveying distances of up to 500 m and throughput rates of 400 t/h, screw pumps are generally used. For higher throughput rates the system can be equipped with several parallel screw pumps. Bucket elevators are employed for vertical conveyance, while high-capacity belt conveyors can be used for mainly straight conveying routes.

3.2 Storage and dispatch
Cement storage is the second key technology at cement terminals. In this sector, the requirements are not limited to annual handling capacities and the necessary storage capacity but also involve numerous further criteria, such as planned operating periods, space requirement, ground stability, existing equipment, the number of cement types to be stored, and the other necessary equipment like mixers, packers, rail and truck loading facilities etc. Correspondingly, there are a number of different storage concepts and silo solutions, which all have their specific advantages and disadvantages. In individual cases, an import terminal can dispense with a storage silo if, for instance, the cement is supplied directly from the ship unloader to truck loaders. This solution is also referred to as a mobile terminal. A different kind of mobile terminal is the solution employing a mobile mini-silo of around 400 t capacity, which is still large enough to ensure suitable buffer times for truck loading and to empty the cement transport ship within a short time.

A total of four well-established storage solutions is to be found at all sizes of terminal, even if one or the other type possesses particular advantages for a certain size of terminal. Usually, steel silos are used for the smallest storage capacities while concrete silos equipped with a central cone handle the largest storage capacities. In between these two extremes, use is made of flat storage halls and dome silos. The fundamental differences and respective selection criteria have been described, for instance, in [7, 8]. In the meantime, pneumatic floor discharge systems are in use for all these types of storage installation. However, mechanical discharge systems are still sometimes employed in flat storage halls and dome silos. Nevertheless, the trend is clearly towards pneumatic discharge systems because these are practically maintenance-free and less susceptible to faults, meaning that they provide more reliable operation. Nowadays, pneumatic systems are also completely encapsulated and dust-tight, thus fulfilling the most stringent environmental regulations.

In recent years, steel silos or batteries of steel silos have been specified in numerous projects with handling capacities of up to 1 000 000 t (Fig. 11). Such silos are relatively simple to erect, and the individual silos can have diameters of 8-12 m and capacities of up to 4000 -5000 t. To assure trouble-free discharge of the cement, the silo bottom is usually cone-shaped and is equipped with an aerated floor. Steel silos also permit a relatively high degree of flexibility with regard to storage of different cement types. Moreover, if the silos are mounted on a substructure, loading lanes can be installed beneath them. Such advantages cannot easily be implemented with dome silos or flat storage halls. Separation of the silo interior into different compartments is pos-sible but not easy to realize. For dispatch purposes, a separate building with suitable intermediate conveyors and dispatch silo feeding system is almost always necessary.

Concrete silos provide the greatest technological capabilities. They can be designed as multi-compartment silos, incorporating all the ancillary equipment into the silo structure. Such silos, which are designed as central cone silos, have become the favoured solution for large storage capacities (Fig. 12). They can include a very broad range of detail solutions, including mechanical mixers, Roto-Packers and several loading lanes located underneath the central cone. Up to now, such cement silos have been constructed with diameters of 30 m and more, and storage capacities of up to 40 000 t. The typical dimensions of storage silos with a storage capacity of 20 000 t are 20 m silo diameter and 60 m silo height. Operation of these silos is very reliable and fully automatable. Nowadays, modern chip card systems that can be operated by the truck drivers are installed in cement dispatch systems with bulk loading facilities.

The greatest innovations of recent years have, without doubt, taken place in flat storage systems. Beginning with no longer up-to-date mechanical discharge systems, the first upgrade stage involved pneumatic trough conveyor systems that enabled complete encapsulation of the storage system. Over the last few years, the non-plus-ultra has become the employment of aeration systems and technologies like that installed for the first time by Golden Bay Cement at the Eastport Terminal in Auckland New Zealand (Fig. 13). There, the entire floor of the flat store is equipped with large-area aeration channels that can be controlled section-by-section [9]. Cement conveyance from the flat store to the dispatch system is handled by screw pumps. Meanwhile, several such systems are either already installed or at the planning stage.

This development has decisively improved the attractiveness of flat storage systems, in recent years, resulting in declining use of dome silos at cement import terminals.

4 Project and contract award trends

In recent years, a trend towards turnkey import terminal projects for cement has set in. This concerns both import terminals for cross-border cement dispatch (Fig. 14) and also the so-called inland terminals. Turnkey involves performance of the following scope:
1. All equipment (general layout, own manufacturing and outsourced)
2. Steel construction (basic engineering, workshop drawings, structure analyses)
3. Concrete construction (drawings, structure analyses)
4. Supervision of erection and supervision of commissioning
5. Warranties

Depending on the project objectives, the turnkey supplier is responsible for the steel and concrete construction in addition to the machine supplies. For turnkey contracts, most companies that supply cement terminals engage one or more co-operation partners for the services that are outside their own core competence. For small terminals, the number of suppliers is greater. Midsize and large cement import terminals with integral ship unloading systems are currently only offered by a few companies, such as IBAU HAMBURG, Siwertell (Cargotec), FLSmidth Kovako, Van Aalst and two Chinese vendors (one of them CNBM). At present, the market leader is IBAU HAMBURG, who have received around 50 % of all orders awarded in recent years. Aside from the above-mentioned companies, further suppliers of marine loading terminals (Fig. 15) include HW Carlsen, Claudius ­Peters Technologies, DOMTEC and Dome Technology.

5 Conclusions

There is, at present, a relatively high demand for ship unloading terminals for cement. This is particularly due to the increasing quantities demanded by domestic markets, which have already nearly reached the level of the export business. The employment of standard solutions for the terminal systems is steadily declining; instead customer-specific concepts and technologies are in demand. In recent years, the proportion of turnkey solutions has correspondingly increased, as a turnkey contract is practically the only form that offers customers an entitlement to full warranty coverage. The number of possible different technological solutions is very large, as it is almost always possible to employ mechanical or pneumatic systems for conveyance and storage. Although mechanical solutions are in favour for onshore ship unloading equipment, the trend in storage technology is clearly towards pneumatic discharge and conveying systems.

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