Algeciras staying on course
Many decisions taken these days to secure survival of maritime shipping routes and the concomitant services in gateways in these challenging times are dominated by government measures to contain the outbreak of Covid-19. The Spanish port of Algeciras, an important interface between Europe and North Africa, is a perfect example of drastic evaluations opening up the way for promising new solutions.
The news from the Spanish port of Algeciras has it that a new player is entering the fray in the Total Terminal International (TTI), on the gateway’s Isla Verde Exterior. TTI Algeciras belongs to the South Korean line Hyundai Merchant Marine (HMM) and HT Algeciras, wholly-owned by HMM. Now a 50% stake minus one share is being sold to the French line CMA CGM. The price of the transaction was not cited.
HMM thus remains the largest shareholder of TTI Algeciras, with the support of HT Algeciras. In 2017 the South Koreans acquired the facility from insolvent Hanjin Shipping. The deal is expected to free up synergies for TTI, as cooperation with CMA CGM will surely improve the gateway’s profitability and its volumes, the firm said. The terminal offers its clients substantial geographic advantages to tranship containerised goods needing links to more destinations.
Shipping lines are now ever-more interested in these qualities, HMM said, as they grow out of their roles as transporters of goods from port A to port B. Many are in the process of transforming themselves into partners with comprehensive logistics services for customers.
HMM said that “TTI Algeciras has an integral role to play in the development of Algeciras.” The transaction is expected to be completed in the course of the fourth quarter of this year, once regulatory approval has been issued, with joint operations set to be started soon thereafter.
Growth in the reefer sector
The semi-automated container terminal is steadily becoming ever-more of a reference point in the supply chain for temperature-controlled perishable goods, thanks to what the shipping line HMM called its “unbeatable transit times and its connectivity to more than 125 ports,” most of which it said were located in Latin America and Africa.
TTI Algeciras’s reefer traffic increased by almost 18% between January and July, compared to the same period in 2019, with local reefer units particularly prominent. Currently almost 70% of all import or export reefers handled in the port of Algeciras are moved through the TTI.
The facility will continue to vigorously support this trade, and had 120 new reefer plugs installed recently to this end. In 2018 TTI Algeciras already invested in 64 new reefer plugs. As a result, the overall number of plugs dedicated to reefer boxes has now reached no less than 1,144 units, a 20% increase over the number available when the terminal started operations in 2010. This upgrade will enable the facility to continue to absorb peak-season reefer volumes from September onwards.
