News Breakbulk & Project Cargo
A 2,500-mt lift capacity crawler crane at Sarens ’ facility in Rostock , Germany . Sarens
“ It is essential — for the efficiency of European industry as a whole — that we urgently prioritize investment in infrastructure , at the very least on key trading routes .”
The rules for marking , lighting and escorting the same heavy loads and trucks differ from country to country across Europe , he said .
“ It makes no sense at all ,” Klijn said . “ Yet getting agreement on such a simple and obvious [ simplification ] has already taken years and we have not managed it yet .”
Heavy-haul operators in Germany can even see permits cancelled if loads are underweight and undersized , Klijn said . Current regulations allow for a 5 % variation in weight or a 6-inch ( 15 centimeter ) variation in size ; variations beyond those margins and permits can be cancelled .
“ The situation where a permit can be deemed null and void because a load is slightly undersize defies belief , and authorities should be more flexible when loads are under weight or under sized , because they pose no additional threat to weak roads and bridges ,” Klijn said . “ Europe-wide , we need common , sensible , properly enforced regulations that will not just make the industry more efficient but also safer , as everyone will know what the rules are and what they have to do to comply with them .”
Industry reconfiguration
heavy-lift company Barnhart Crane & Rigging , told the Journal of Commerce that although high interest rates have slowed capital construction , “ we seem to be in a good place in the economy with a steady flow of projects , which is much [ healthier ] than a boom / bust cycle . Power demand continues to be a primary driver .”
The return of manufacturing to North America , especially the US , has created demand for heavy lift and heavyhaul services to move presses and other machinery and equipment , Latture said .
And despite turmoil in the Red Sea and reported slowdowns and scaling back at Saudi Arabia ’ s nearly $ 1.7 trillion NEOM project , the Middle East remains an active project market , Sel said .
Major headaches
While the business outlook for the heavy transportation sector remains generally positive , ESTA , a lobbying group for European heavy-haul transport and mobile crane operators , said bureaucracy and creaking infrastructure create significant headwinds in Europe , similarly to the US .
This makes the industry “ less safe and less efficient , raising costs for our clients and ultimately for the consumer ,” Ton Klijn , director of the Netherlands-based ETSA , told the Journal of Commerce .
“ Getting wind turbines from a factory to the port or their onshore location can result in lengthy and time-consuming detours and delays because far too many of Europe ’ s roads and bridges simply can ’ t take the loads ,” he said , citing recent repeated road closures around the Port of Hamburg .
Netherlands-based conglomerate SHV , parent company of Mammoet , the world ’ s largest heavy transportation and engineering company , scrapped a 2023 plan to sell Mammoet because it was unable to find a buyer , but said this spring that “ the intent to divest Mammoet remains .”
“ Europe-wide , we need common , sensible , properly enforced regulations .”
In July , Mammoet launched an initiative which involves splitting its operations into two separate divisions — large projects and crane rentals — with the global projects business headed by Mammoet COO Jan Kleijn and crane rentals fronted by Wouter van Noort , currently European regional director .
Tippmann noted that in creating a separate equipment rental business , Mammoet is joining companies like Sarens that have similar business lines .
“ Specialized high-value equipment rental is beneficial for firms wanting to limit their investment when they just need special equipment for a limited period ,” he said . “ But too many companies renting equipment can saturate the market , leading to lower prices and therefore lower margins .” Heavy transport companies renting out their own equipment can also be a sign that they are not able to keep all their assets busy .
“ Sometimes , if you look at certain rental rates , they are just in line with pure depreciation values ,” Tippmann said .
email : keithwallis @ hotmail . com www . joc . com September 2024 | Journal of Commerce 15