It is traditional at this time of year to look back, take stock and consider the highs and lows before charting course for the year ahead. 2023 was once again an eventful year for our industry and this helped us stay sharply focussed on the areas that can add value for our customers, people and partners across the globe.
We continued to lift standards of efficiency and safety in our business through the adoption of Lean working principles – part of our DNA – and increase operational excellence and safety through modernisation and innovation. This helps our customers to lower costs and provides service reliability.
For example, we have reduced average port stays by well into double digits across our fully controlled terminals compared to our 2021 baseline – resulting in reduced emissions and time and cost savings for vessels calling our terminals.
Future proofing
We are investing in capacity expansion to lift productivity and prepare terminals to handle a growing number of larger vessels. In Mumbai, we have refurbished one berth with new 23-row outreach cranes as part of a larger project to increase annual capacity by 10%. This was implemented whilst achieving record customer satisfaction levels in the process.
Our ambitious modernisation of Los Angeles Pier 400 will result in increased capacity, reduced truck turnaround times and enhanced customer experience.
This week, as expansions at our terminals in Lazaro Cardenas (Mexico) and Mobile (US) gather pace, APM Terminals Callao also commenced a US $95 million general cargo investment that will increase capacity and productivity.
Our one million TEU expansion at our Tangier MedPort terminal in Morocco also became operational this month. The expansion included an auto-mooring system that can shave precious minutes off port stays and the implementation of shore power which will reduce emissions from vessels at berth.
Lifting the standard of responsibility (across our industry)
On our journey to reach Net Zero by 2040, we now source nearly 40% of all the electricity we consume globally from renewable sources. In addition to generating our own solar power – in Barcelona we added an additional 1,210 m2 of solar panels this year – we also signed captive renewable electricity contracts, for example in Mumbai (India).
To speed up the decarbonisation of our industry, we recently published a White Paper and established the Zero Emission Port Alliance (ZEPA) with DP World to address the affordability and accessibility of electrifying port operations to support customers in reducing supply chain emissions.
We’re sharing the knowledge gained from a pilot project for electric reach stackers, empty container handlers, and terminal trucks in Aqaba (Jordan). And we are working with suppliers on a $60-million pilot investment to electrify port equipment – turning the switch in many locations across the globe.
We’re also stimulating electrification with local initiatives such as the implementation of electric truck priority lanes in Gothenburg (Sweden) and Pier 400 (Los Angeles).
Lifting the standard of digital connectivity
This year we’ve added thousands of sensors and devices such as Optical Character Recognition (OCR) cameras to our equipment, gates and processes. This enables us to accurately track container movements around our terminal and develop visibility solutions that provide our customers with reliable, real-time data to speed up their supply chains.
Our new digital Shipping Line Dashboard will have been rolled out to 6 terminals in just a couple of months, offering complete visibility of port stays in real time. I’m confident that this level of detail and transparency will be a great foundation for us working together with shipping lines to help increase efficiency and reduce port stays even further.
And our range of real-time API data feeds is now available to connect 24 of our terminals directly to customers own logistics management systems for access to the very latest information in our Terminal Operation System. This can shave time off supply chains, reduce manual errors and improve efficiency.
Increasing capacity where it matters for our customers
As our new low-emission Côte d’Ivoire Terminal (CIT) celebrates its first anniversary we continue to lift the standard of connectivity by investing in new terminals in Suape (Brazil) and Haiphong (Vietnam) – and in Rijeka Gateway (Croatia), where we have invested €380 million in the new gateway to Central Europe, which will be operational in 2025. We are scaling up intermodal connectivity, with new opportunities for rail in Apapa (Nigeria), Mobile, Pipavav, Gothenburg (Sweden), Aarhus (Denmark) and Poti (Georgia).
Lifting ambitions in 2024
We have an exciting journey ahead of us. It’s a journey in which we will uncork as much value as possible for our customers by offering even more reliable, efficient, and timely products.
Thank you for your continued trust in APM Terminals and for lifting standards with us. I wish you and your loved ones a peaceful and restful end to 2023, and I look forward to enjoying a happy, healthy, and prosperous 2024 with you.
Keith
CEO