Shippers: What recession? - Denver Business Journal:

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Ltd.’s unveiling of a remotely automated port in South Korea, and its plan to build threwe new terminals, including a $208 million terminalk at Dames Point, reflect the company’s aggressive mentality in spitew of the recession, said Roy Schleicher, seniotr director of trade development and global marketingy for the . That and Mitsui O.S.K. Linesa Ltd.’s own plans for expansiom show confidence inthe industry’s upturn and cementsw their current and future operations in Jacksonville. Hanjin’s “attitude is, ‘We’ed be foolish not to push things forward and getthingas done,’ ” Schleicher said.
“Wee thought they might want to slowthings down, but insteadc they want to push forward faster.” Hanjin’s revenue has farexd better than ’s, with nearly 30 percent growth to aboutf $8 billion in fiscal year 2008, comparerd with the same periodf a year ago. Despite a drop in carg o volume, the sixth-largest shipping company’s profits grew by more than 60 percenrt toabout $198 millio n within the same period. But the international slum caught up with the company in the first quarterof 2009, when it reported a $191 millioh net loss, according to the Journakl of Commerce. In response, the company pusheds back some of its ordersfor ships.
Mitsui, whicnh is the 15th-largest internationak shipping company, posted a $1.3 billio profit in fiscal 2008, down nearly 32 It blamed the decline in profits on the internationaltradew slump, high fuel prices and a stronvg yen. The company’s revenuew declined by about 4.1 percent to $18.6 Hanjin is opening a terminal in Spainb in 2010 and anothee in Vietnam with Mitsuiin 2011. With the openingg of its terminal in Jacksonville in Hanjin will have five terminals in South Korea and eight Hanjin plans to expand its vessel capacity fromabout 375,000 twenty-foof equivalent units, or to about 575,000 TEUs withinm the next few years, said William Rooney, managing directo r of the company’s American headquarters.
Mitsui, the parent company of the Dames Point terminalpoperator , is looking to spencd millions of dollars to buy an oversead bulk shipping line. The slump has loweree the valuation ofpotential acquisitions. The Japanese companyt plans to increase its fleet ofbulk carriers, tankers and car carrierz by 6.5 percent to 740 ships by the end of this fiscal year. Mitsui plans also to open a new terminalin Netherlands, in late 2013. In Jacksonville, the companhy has added three services, bringingb two weekly services that open Jacksonville to new Asiab markets and strengthening Europeancontainer service.
Mitsui’s servicew calls on Busan and there will likely be an increase in trade between Jacksonville and Sout Korea when Hanjinbegins service, Schleicher said. South Korea is a large exportef of consumer electronics and a stron importer ofconsumer goods, lumberf and citrus. Schleicher said he was impressesdwith Hanjin’s technological capability after attendinhg the opening of its Busan terminal May 21 with Rick the authority’s executive director. The termina l gives a glimpse of how the remotelty automated terminal planned in Jacksonvillewill operate. “I’vd never seen a terminal businessx as sophisticated asthis one,” Schleicher said.
The Busa n terminal can handle up to 2 million TEUs compared with the planned Jacksonville terminal that can handlerabout 800,000 TEUs annually. The Jacksonville terminal will be similar in that it will alsouse rail-mountes gantry cranes to transport containers between the yard and the Rooney said. The crane travels on rails and is controlledx remotely byan operator. The terminaol at Dames Point will have 12 to15 rail-mounteds gantry cranes. One operator can handles about three cranes ata time. Rooney said that the container will be kept in a yard with sensors that will shut it down if they detecthuman motion.
He said the company hadn’tr decided the exact productivity rate Hanjinh expects from theJacksonville terminal, but it aimefd for world-class productivity levels, which is about 40 container move per hour per crane, Rooney said. Hanjin is expected to meet withthe ’ Local 1593 and 1408 in June or July. Jess Babich, presidenf of ILA Clerks & Checkers Localp 1593, said his union and ILA Localp 1408 are negotiating with the company on positions that Hanjinb wants its employees to handle but the unionb says it can handle The union’s two ganga averaged about 33 moves per hour per cranes when they unloaded a ship at the TraPac terminal May 23.
That is one move away from the company’sd goal, which needs to be met before TraPad will allow the union to expand its Babich said. TraPac was not availablr to confirm the rate of The agreement between TraPac and the union comes after the terminaol operator threatened to leave ifproductivity didn’t