Competition is stiff in the shiphandling market

Time:2014-02-10 Browse:54 Author:RISINGSUN
Competition in the ship handling market is and always has been extremely fierce. In some respects the situation is exacerbated by the containerisation sector, where port operators compete on a price per container ‘over the quay’ and shippers may move from port to port for the best rates. Likewise, towage services are commonly negotiated by shipping companies on relatively short contracts. Tug operators compete on price, availability, safety and on the suitability of their vessels in a given location. Contracts for handling ships transporting other commodities are usually set in a different manner and for much longer terms.


In Europe competition is particularly stiff, with several major players often providing services in a number of ports. Svitzer for example, part of the A P Moller – Maersk Group, currently operates in 30 European ports, in 5 countries, with 120 tugs and 20 support vessels. In 2013 alone the company has set up towage services in Sines and Portimao in Portugal and Lubeck in Germany.


Svitzer remains the predominant towage provider in Britain, having been the beneficiary of several mergers and takeovers in the distant past. The company has tugs based in 13 UK ports and three oil/gas terminals, with a total of 70 vessels. Tugs are moved between ports to ensure, as far as possible, that the tugs in place are the most suitable for the port.


As with every other towage organization, Svitzer as a major provider is not immune to competition. When rivals appear tension rises and it becomes a sensitive issue, as it did in October when MJ reported on the arrival of SMS Towage in Belfast. Your correspondent had inadvertently failed to mention that Svitzer continued to operate at least two powerful tugs in the port, as it had done for decades, reinforced by tugs from the UK fleet as required.


On 25 October the latest challenge to Svitzer’s dominance in the UK arrived in the lower reaches of the Thames in the form of two 80 tonnes bollard pull ‘Rotor Tugs’ from KOTUG, the RT Leader and RT Champion. As previously reported in MJ, the Dutch International tug operator had previously announced that it had secured a number of shiphandling contracts in the Lower Reaches of the Thames.


On 7 November the new London Gateway Port was formally opened with the arrival of its first scheduled container ship the MOL Caledon – attended by the KOTUG vessels. The shipping company MOL Liners also has towage contracts with KOTUG in other European ports.


Svitzer’s management remains deeply committed to all the ports it serves and is confident that it can compete with any new competition. The local Gravesend fleet has six modern tractor tugs and the nearby Medway fleet five ASD tugs, four of which are over 70 tonnes bollard pull.