Cargotec wins crane upgrade contracts from Malaysia

Cargotec has secured two contracts to refurbish and upgrade ship-to-shore (STS) cranes from Northport (Malaysia) Bhd operating at Port Klang, as part of plans to boost efficiency and capacity at its Container Terminal Two.

Eight cranes, capable of 48m outreach, will be completely refurbished with digital electrical system technology. Upgrades will be made to the cranes' PLCs, speed drives, control monitoring systems, motors, cables, brakes, festoon systems, operator cabins and load weighing systems. Two further post-Panamax cranes will be raised in height to accommodate larger container ships.

Collin Swee, Director, Cargotec Terminal Business Malaysia, says that the crane refurbishment project aims to extend the lifetime of Northport's quay cranes while offering improved return on its initial investment. He comments:

These cranes are 10-15 years old, but they are still in good structural condition. We expect that their life expectancy will be extended by a minimum of 1 million cycles. With newer generation electrical and electronic components, the reliability and uptime of the cranes will be significantly improved. Additionally, maintenance costs are expected to be lower in the medium- to long- term. Each unit will also benefit from a new Crane Maintenance Management System (CMMS) - for faster diagnosis of technical faults, in turn reducing mean time to repair.

The cranes will also have their control systems modified to allow for twin-lift operations. Mr Swee said that the upgrade would result in a 15 per cent improvement in operational speed and efficiency.

The 20-month retrofit project will see cranes redelivered progressively, with the first back in service by end first quarter 2011, and the last operational by first quarter 2012. The separate crane height increase project will commence early next year.

Although Northport's quay cranes are not Kalmar-built, Cargotec uses its several decades of STS engineering experience, expertise and resources to perform refurbishment services on its own and other-branded cranes. Northport operates with Kalmar equipment including 24 straddle carriers, three empty container handlers and 90 terminal tractors.

Preparing for growth

The crane refurbishment projects are integral to Northport's plans to meet new demand for handling capacity. Throughput grew 26 per cent in the first half of 2010 compared to the same period last year, with the port expected to handle 3.5 million TEU in 2010 as a whole.

The Asia Pacific region has experienced quantum growth in port terminal development in the last 15 years, says Swee. There is a demand for a strong and competent technical service provider to assist these terminals in the upgrade and retrofit of their current equipment fleet.

Cargotec's terminal business in Malaysia, which has a staff of 135, secured a ship-to-shore crane refurbishment contract in Brunei in 2009, covering two cranes; completed a STS refurbishment project in Manila, Philippines in March 2010; and has recently been engaged to undertake crane structural analysis at the ESCO Terminal, Laem Chabang, in Thailand.

About Cargotec

Cargotec improves the efficiency of cargo flows on land and at sea - wherever cargo is on the move. Cargotec's daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world. Cargotec's global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec's sales totalled EUR 2.6 billion in 2009 and it employs approximately 9,500 people. Cargotec's class B shares are quoted on the NASDAQ OMX Helsinki. www.cargotec.com

Cargotec's expertise in container and heavy load handling is represented in the global marketplace by the wide range of Kalmar solutions. This includes ship-to-shore cranes, yard cranes, shuttle and straddle carriers, reachstackers, empty container handlers, terminal tractors, log stackers and automation. One in four container movements around the globe is handled by a Kalmar machine. www.kalmarind.com