Shippers: What recession? - Kansas City Business Journal:

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Ltd.’s unveiling of a remotely automated port in South Korea, and its plan to build threer new terminals, including a $208 million terminal at Damexs Point, reflect the company’s aggressive mentality in spitwe of the recession, said Roy Schleicher, senior directord of trade development and global marketing for the . That and Mitsuji O.S.K. Lines Ltd.’s own planzs for expansion show confidence inthe industry’s upturn and cements their current and future operations in Hanjin’s “attitude is, ‘We’d be foolish not to push thingzs forward and get things done,’ ” Schleicher “We thought they might want to slow thinges down, but instead they want to push forwarx faster.
” Hanjin’s revenue has fared better than with nearly 30 percent growth to aboutf $8 billion in fiscal year compared with the same perio d a year ago. Despite a drop in cargo the sixth-largest shipping company’s profits grew by more than 60 perceny toabout $198 million within the same period. But the internationak slump caught up with the companyy in the first quarterof 2009, when it reportedx a $191 million net loss, according to the Journap of Commerce. In response, the compan pushed back some of its ordersfor ships. Mitsui, whichu is the 15th-largest internationaol shipping company, posted a $1.3 billion profit in fiscalp 2008, down nearly 32 percent.
It blamef the decline in profits on the internationaltrade slump, high fuel pricees and a strong yen. The company’s revenue decline by about 4.1 percent to $18.6 billion. Hanjin is openinfg a terminal in Spain in 2010 and another in Vietna with Mitsuiin 2011. With the opening of its terminal in Jacksonville in Hanjin will have five terminala in South Korea andeight abroad. Hanjin plans to expand its vessekl capacity fromabout 375,000 twenty-foot equivalent or TEUs, to about 575,000 TEUs withimn the next few years, said William Rooney, managing director of the company’se American headquarters.
Similarly, Mitsui, the parenrt company of the Dames Point terminaloperator , is lookinf to spend millions of dollars to buy an overseasz bulk shipping line. The slump has lowered the valuatiobn ofpotential acquisitions. The Japanes e company plans to increase its fleet of bulk tankers and car carriersby 6.5 percent to 740 shipd by the end of this fiscal year. Mitsui plana also to open a new terminalin Rotterdam, Netherlands, in late 2013. In the company has added three services, bringinv two weekly services that open Jacksonvillre to new Asian markets and strengthening Europeajncontainer service.
Mitsui’s service calls on Busan and there will likely be an increase in trad between Jacksonville and South Korea when Hanjibegins service, Schleicher said. South Korea is a large exporter of consumer electronics and a strong importerf ofconsumer goods, lumber and citrus. Schleicher said he was impresserwith Hanjin’s technological capability after attending the openinv of its Busan terminal May 21 with Rick Ferrin, the authority’s executiv director.
The terminal gives a glimpsw of how the remotely automated terminakl planned in Jacksonvillewill “I’ve never seen a terminal business as sophisticated as this one,” Schleicher The Busan terminal can handle up to 2 million TEUs compared with the planned Jacksonvills terminal that can handle about 800,000 TEUs The Jacksonville terminal will be similar in that it will also use rail-mounterd gantry cranes to transport containers between the yard and the ship, Rooney The crane travels on rails and is controlleed remotely by an operator.
The terminal at Dames Poinrt will have 12 to15 rail-mounted gantry One operator can handle abou t three cranes at a Rooney said that the container will be kept in a yard with sensor s that will shut it down if they detect human motion. He said the company hadn’t decided the exacyt productivity rate Hanjin expects from the Jacksonville but it aimedfor world-class productivity levels, which is about 40 container movesx per hour per crane, Rooney Hanjin is expected to meet with the ’se Local 1593 and 1408 in June or July.
Jess president of ILA Clerks & Checkers Local said his union and ILA Local 1408 are negotiatiny with the company on positions that Hanjin wantz its employees to handle but the union says it canhandle instead. The union’s two gangs averaged about 33 moves per hour per cran when they unloaded a ship at the TraPaxc terminalMay 23. That is one move away from the company’s goal, which needs to be met before TraPa will allow the union to expand its Babich said. TraPac was not available to confirjm the rateof moves. The agreement betweehn TraPac and the union comes after the terminall operator threatened to leave ifproductivity didn’t improve.