The unlikely beneficiaries of Algeciras battle with congestion

During recent years, Maersk has looked to offset congestion at Algeciras by making use of nearby ports, two of which have received unexpected, but highly welcome boosts in traffic.

Early in the new millennium, Málaga, which had previously carved out a niche as a liquid and dry bulk handling port, was stunned to learn that it was to lose all of the former, as incumbent operator Campsa decided to restructure its business in the peninsula.

To offset this haemorrhaging of traffic, investment was ploughed into converting part of the port into a multi-purpose terminal. The new concessionaire, a consortium headed by Dragados-SPL (85%), set up operating company Terminales del Sudeste (TDS), which then cast around for a reference customer to kick start the business.

Maersk almost immediately showed interest in the project, no doubt prompted by advantageous rates on offer for early adopters, a workforce desperate to impress and by state-of-the-art equipment capable of handling its largest vessels. Both sides have benefited immensely from the arrangement, with throughput rising at vertiginous rates.

Significantly, to date, ¢120m ($166.5m) has been invested in TDS, making it the largest ever sum sunk into a project at a Spanish port by a private operator.

In October 2007, the length of container quay was due to increase from 400 metres to 500 metres, in addition to there being 175 metres of ro-ro berth, with alongside draught of 16 metres. The 150,000 sq m stacking yard is equipped with 12 five-over-one rubber-tyred gantries (RTGs), while four gantry cranes provide the quayside lift, with an outreach over 22 rows; a fifth ship-to-shore crane is also due to enter service in October.

During the first quarter of 2008, the terminal is due to expand yet further, this time to 723 metres of container handling quay, while the total stacking area will become 190,000 sq m. A further 80,000 sq m has also been allocated to new vehicles traffic, which could generate around 200,000 units annually.

Terminal director Elías García explains to Port Strategy that gantry cranes are producing a gross average of 25 moves per hour, although this is expected to reach 30 moves once all the infrastructure work is completed.

“Maersk is currently the only container line using the terminal; however, several important lines plying the Mediterranean are showing a strong interest in our services. We expect to be able to accommodate other lines once phase II of the terminal is completed in the first quarter of 2008.

“In terms of other traffic, we are receiving a weekly call from UECC, which discharges imported cars from Northern Europe,” says Mr García.

Maersk’s involvement with Málaga has resulted in calls from five weekly services to West Africa, as well as one a week from both westbound and eastbound services to and from the Far East. These would normally operate out of Algeciras, but have been forced to use Málaga as the more westerly port has simply run out of room.

As previously mentioned, throughput build up has been achieved with frightening speed. In 2004, for example, TDS handled just 104,426 teu, jumping to 283,594 teu the following year. In 2006, 468,107 teu flowed through the terminal, which handles upwards of 95% of transhipped boxes. For the year in progress, 625,000 teu is the forecast end-of-year figure, along with 35,000 cars.

Another direct beneficiary of Maersk’s largesse has been Cádiz. In recent years, this has become a repositioning point for empty containers, prior to despatch back east. However, restructuring of services does appear to have strangled this golden goose somewhat. While traffic rose by 12% to 155,370 teu last year, it has declined by 9% so far in 2007.