Following is the full text of the interview with Neville Bissett, CEO, QTerminals by Gulf Times Editor-in-Chief Faisal Abdulhameed al-Mudahka
1. QTerminals, jointly established by Mwani Qatar and Milaha, is responsible for enabling Qatar’s imports and exports, maritime trade flows and stimulating economic growth locally and regionally. QTerminal’s long-term vision is to be recognised internationally as the most reliable terminal operator and an enabler for the continuing economic growth of Qatar. Are you satisfied with QTerminal’s progress so far?
1. QTerminals, jointly established by Mwani Qatar and Milaha, is responsible for enabling Qatar’s imports and exports, maritime trade flows and stimulating economic growth locally and regionally. QTerminal’s long-term vision is to be recognised internationally as the most reliable terminal operator and an enabler for the continuing economic growth of Qatar. Are you satisfied with QTerminal’s progress so far?
QTerminals was established in December 2016 with the aim to operate Hamad Port Phase-1 (Qatar’s Flagship Port). We have grown internationally following our internationalisation strategy, fully supported by QTerminals Board of Directors and the hard work of a strong & efficient management team. Yes, we are very happy with QTerminals achievements during the last four and half years of commercial operations.
The significant/substantial progress made at Hamad Port since its soft opening in 16th December 2016 is very apparent. The official inauguration under the patronage of His Highness Sheikh Tamim bin Hamad al-Thani, the Amir of the State of Qatar, and the presence of other dignitaries on 5 September 2017 established Hamad Port and QTerminals on the world stage.
The monthly containerised volumes have increased more than 3-fold, from an average of just over 40,000 TEUs per month to an average of 125,000 TEUs (Twenty Foot Equivalent Unit – Cargo capacity for container ships & terminals) per month. Since the start of operations, QTerminals has handled over 6mn TEUs and 13mn freight tonnes of bulk/general cargo and over 330,000 vehicle units (via RORO).
This increase has been driven by our continuing efforts to maintain the highest levels of productivity and service delivery without compromising on safety and quality. We have positioned Hamad Port as a transshipment hub for the Upper Gulf, and mainline services of most of the major shipping lines are now directly calling at Hamad Port.
Additionally, we have added two new international business units to QTerminals portfolio:
1. QTerminals won the 35-year concession to manage and operate SC Olvia Port in Mykolaiv, Ukraine. The facility transfers to QTerminals Olvia from December 1, 2021, which is the end of transition period.
2. In January 2021, QTerminals completed the $140mn acquisition of the Port of Akdeniz, Turkey, from Global Port Holdings. A multifunctional port, with both commercial and cruise operations, the total annual handling capacities are approximately 500,000 TEUs, 5m tonnes of general and bulk cargo and up to 2,500 vessels per annum. Akdeniz Port is now fully re-branded as QTerminals Antalya.
2. As of June this year, how much cargo have you (QTerminals) handled? Can you please give a breakup on general cargo, vehicles (via RORO) and vessels?
From 1st January 2021 to end September 2021, QTerminals has handled 1,178,276 TEUs, 1.157m FT of Bulk/General cargo, 55,596 RORO units and 1,216 vessels.
3. What’s your projection for cargo handling by 2025? And 2030?
Aligned with the Qatar National Vision 2030 as well as the government initiatives of new projects in Qatar, the hosting of many prestigious sporting and cultural events and the FIFA World Cup 2022, growing tourism and incremental gateway cargo, QTerminals has developed a strategy plan to position Hamad Port as a transhipment hub for the upper Gulf region, demonstrating sustainable growth of sea trade in the coming years. The containerised throughput projection for 2025 is 1.85mn TEUs and 2.3mn TEUs by 2030 (Est: @5% growth year on year)
4. Safe and injury-free operations are given top priority by Government of Qatar. What has been QTerminal’s safety record so far?
Safety is a core value at QTerminals. QTerminals takes and will continue to take all possible measures to ensure the safe handling of cargo at Hamad Port. On 5th August 2021, QTerminals achieved 5mn man-hours without incurring any lost time injury with zero fatality and zero LTI frequency rate (LTFIR).
5. The world’s largest shipping companies and other mainline operators now call directly at Hamad Port, and many are expanding their existing routes. How does QTerminals support Hamad Port in realising this?
The increase in number of direct calls at Hamad Port shows the trust, reliance and confidence of shipping lines on QTerminals services. We offer our customers the highest levels of efficiency and productivity, while ensuring lower vessel turnaround times
We are currently implementing various initiatives to improve further our service delivery. Various innovative projects have been and will continue to be implemented to improve efficiency sustainably, not only in how we handle our cargo, but also in delivery and the supply chain of cargoes.
The new remote controlled quay cranes at CT2 Terminal have consolidated QTerminals’ position as the main gateway for foreign trade by ensuring availability of adequate capacity and delivering the highest levels of productivity and efficiency. CT2 has won the confidence of local importers/exporters as well the international shipping lines.
6. QTerminals was awarded the concession for the design, development, and operations of Hamad Port’s Phase II (Container Terminal 2) in November 2018 by Qatar’s Ministry of Transport and Communications. Can you please provide an update on Container Terminal 2 development works?
QTerminals was awarded the concession for the design, development, management, and operations of Container Terminal 2 (CT2), at Hamad Port. The project development was delivered on schedule and under budget, exactly 12 months after the start of construction. CT2 was declared fully operational and inaugurated by the Prime Minster of Qatar, HE Sheikh Khalid bin Khalifa bin Abdulaziz al-Thani, HE the Minister of Transport and Communications and QTerminals Chairman, Jassim Seif Ahmed al-Sulaiti on 22nd December 2020.
Expansion in CT2 will be carried out in four phases. Phases 1 & 2 are completed and currently operational with an additional 1mn TEU capacity. They include 624 metres of quay length, and by the end of this year will have 7 x remote controlled quay cranes, 25 x hybrid battery type RTGs and 22 x fully electric terminal tractors.
With the completion of Phases 3 & 4 as and when the market dictates, CT2 will add 2mn TEUs annual capacity. CT1 and CT2 will then have a combined capacity of 4mn TEUs annually.
The expansion of CT2 will be an enabler for achieving Qatar’s National Vision 2030. CT2 completion will also supplement Qatar organic economic growth, Hamad Port will facilitate the expansion in the ports and logistics sector and will meet all customer needs.
7. Gulf Times understands that QTerminals has made its inroads into Black Sea, what is the update on investment in Ukraine? Are you also planning to get into the rapidly growing Asian/Southeast Asian markets? Are you looking at other regions as well?
In August 2020, QTerminals signed its first international port concession for SC Olvia in Mykolaiv, Ukraine. The 35-year concession agreement was signed by QTerminals with the Ukrainian Ministry of Infrastructure and Ukrainian Sea Ports Authority. Under the terms of the Concession Agreement, QTerminals will invest UAH2.8bn in the project, with the handover of the facility and the start of the concession planned for December 1, 2021.
Additionally, in January 2021, QTerminals completed the $140mn acquisition of the Port of Akdeniz, Turkey, from Global Port Holdings, establishing QTerminals Antalya. QTerminals Antalya has fully integrated into QTerminals Holding Company and is also now fully re-branded
QTerminals is pursuing its internationalisation strategy and is looking at other projects worldwide.
8. A focus area of QTerminals is to employ and retain the brightest talent. Equipping Qataris to support national economy is government’s top priority. What is QTerminals specifically doing to develop the national workforce in its cadre?
QTerminals talent acquisition strategy is fully aligned with the Qatar National Development Strategy and Qatar National Vision 2030. Recruiting top talent is critical to the success of any business, as employees are a key source of competitive advantage. We believe that equipping the workforce with diverse skills that can support the current and future needs of an economy is essential to the long-term sustainability of any nation.
QTerminals Top/Senior Executive Management includes several highly qualified Qatari professionals who have extensive experience in their management field:
• Scholarship Program: initiated by QTerminals and aligned with the company vision and for a limited number as per the business needs. QTerminals is planning and intends to send talented nationals to foreign universities to pursue their bachelor’s education. This will provide them the opportunity to learn and adapt new skills and techniques. During their studies, the candidates will undertake internships in Hamad Port and in other QTerminals business units overseas. After their education is complete, they shall be placed in the relevant departments of QTerminals in the capacity of permanent positions.
• Development Program: in 2019/2020 QTerminals started a trainee program with trainees (currently 2/3 candidates/employees) placed directly in development positions in various departments, where they are carefully mentored by senior managers.
• On-Site and Off-Site Training: QTerminals has a full-fledged Learning and Development programme. The goal of learning and development is to develop or change the behaviour of individuals or groups for the better, sharing knowledge and insights that enable them to do their work better. We provide technical skills development, Soft Skill Development and Quality Training, etc.
9. What are the special projects currently undertaken by the QTerminals and what are the projects in the pipeline?
Special projects include start-up of the Strategic Food Security Facility SFSF (a bulk commodities terminal to handle edible oils, rice and sugar). QTerminals will facilitate the handing (including all stevedoring works, etc.) of these food commodities at Hamad Port. Additionally, we are planning to develop an exclusive Port Ancillary Services Area which will cater to the requirements of port users in handling of their cargoes. We are also planning collaboration with Qatar Free Zone to facilitate cargo flows in and out of Qatar. We have also started handling cruise vessels at QTerminals Antalya and are planning to extend this service to Qatar.
10. What is the status regarding the cold storage and warehouse facilities being planned in the general cargo terminal of Hamad Port?
The cold storage and warehouse facilities have been handed over to QTerminals and are used for the temperature-controlled cargoes in secure covered storage facility at Hamad Port.
11. What are the future plans regarding the offshore supply terminal?
QTerminals has a dedicated offshore supply services terminal (OST). We offer berthing on arrival, provide shore water supply, arrange PCR test facilities and support crew changes. QTerminals also can provide repair and maintenance support within the OST terminal premises. In view of North Field expansion plan, we anticipate an increase in the volume of work and number of vessel calls. We have the necessary equipment, appropriate open and covered storage facilities and the operational expertise to provide seamless services to our customers.
12. Last year, electric tractors were handed over to QTerminals. What are the carbon mitigation measures being undertaken by QTerminals?
QTerminals is retrofitting its conventional RTGs for Hybrid conversion. The 26 RTG’s operating at CT1 are equipped with a constant speed diesel generator to supply power for hoist, trolley, gantry, and auxiliary operations that are also required. The constant-speed generator runs continually regardless of the operations being performed. The use of battery hybrid technology for RTGs reduces the environmental impact of RTG operations by reducing the fuel consumption and therefore harmful fossil fuel emissions.
QTerminals is replacing existing conventional lights with LED light in office, yard, and wharf.
QTerminals modified QC cranes in CT1 to use regenerated energy – kinetic recovery. In the previous system, the excess power was dissipated as heat energy while the cranes were carrying out lowering and lifting functions. The system was modified to reuse this excess power for other application such as lighting, powering reefers, and other crane auxiliary systems within Hamad Port to reduce electricity consumption and hence reduce carbon emissions.
The significant/substantial progress made at Hamad Port since its soft opening in 16th December 2016 is very apparent. The official inauguration under the patronage of His Highness Sheikh Tamim bin Hamad al-Thani, the Amir of the State of Qatar, and the presence of other dignitaries on 5 September 2017 established Hamad Port and QTerminals on the world stage.
The monthly containerised volumes have increased more than 3-fold, from an average of just over 40,000 TEUs per month to an average of 125,000 TEUs (Twenty Foot Equivalent Unit – Cargo capacity for container ships & terminals) per month. Since the start of operations, QTerminals has handled over 6mn TEUs and 13mn freight tonnes of bulk/general cargo and over 330,000 vehicle units (via RORO).
This increase has been driven by our continuing efforts to maintain the highest levels of productivity and service delivery without compromising on safety and quality. We have positioned Hamad Port as a transshipment hub for the Upper Gulf, and mainline services of most of the major shipping lines are now directly calling at Hamad Port.
Additionally, we have added two new international business units to QTerminals portfolio:
1. QTerminals won the 35-year concession to manage and operate SC Olvia Port in Mykolaiv, Ukraine. The facility transfers to QTerminals Olvia from December 1, 2021, which is the end of transition period.
2. In January 2021, QTerminals completed the $140mn acquisition of the Port of Akdeniz, Turkey, from Global Port Holdings. A multifunctional port, with both commercial and cruise operations, the total annual handling capacities are approximately 500,000 TEUs, 5m tonnes of general and bulk cargo and up to 2,500 vessels per annum. Akdeniz Port is now fully re-branded as QTerminals Antalya.
2. As of June this year, how much cargo have you (QTerminals) handled? Can you please give a breakup on general cargo, vehicles (via RORO) and vessels?
From 1st January 2021 to end September 2021, QTerminals has handled 1,178,276 TEUs, 1.157m FT of Bulk/General cargo, 55,596 RORO units and 1,216 vessels.
3. What’s your projection for cargo handling by 2025? And 2030?
Aligned with the Qatar National Vision 2030 as well as the government initiatives of new projects in Qatar, the hosting of many prestigious sporting and cultural events and the FIFA World Cup 2022, growing tourism and incremental gateway cargo, QTerminals has developed a strategy plan to position Hamad Port as a transhipment hub for the upper Gulf region, demonstrating sustainable growth of sea trade in the coming years. The containerised throughput projection for 2025 is 1.85mn TEUs and 2.3mn TEUs by 2030 (Est: @5% growth year on year)
4. Safe and injury-free operations are given top priority by Government of Qatar. What has been QTerminal’s safety record so far?
Safety is a core value at QTerminals. QTerminals takes and will continue to take all possible measures to ensure the safe handling of cargo at Hamad Port. On 5th August 2021, QTerminals achieved 5mn man-hours without incurring any lost time injury with zero fatality and zero LTI frequency rate (LTFIR).
5. The world’s largest shipping companies and other mainline operators now call directly at Hamad Port, and many are expanding their existing routes. How does QTerminals support Hamad Port in realising this?
The increase in number of direct calls at Hamad Port shows the trust, reliance and confidence of shipping lines on QTerminals services. We offer our customers the highest levels of efficiency and productivity, while ensuring lower vessel turnaround times
We are currently implementing various initiatives to improve further our service delivery. Various innovative projects have been and will continue to be implemented to improve efficiency sustainably, not only in how we handle our cargo, but also in delivery and the supply chain of cargoes.
The new remote controlled quay cranes at CT2 Terminal have consolidated QTerminals’ position as the main gateway for foreign trade by ensuring availability of adequate capacity and delivering the highest levels of productivity and efficiency. CT2 has won the confidence of local importers/exporters as well the international shipping lines.
6. QTerminals was awarded the concession for the design, development, and operations of Hamad Port’s Phase II (Container Terminal 2) in November 2018 by Qatar’s Ministry of Transport and Communications. Can you please provide an update on Container Terminal 2 development works?
QTerminals was awarded the concession for the design, development, management, and operations of Container Terminal 2 (CT2), at Hamad Port. The project development was delivered on schedule and under budget, exactly 12 months after the start of construction. CT2 was declared fully operational and inaugurated by the Prime Minster of Qatar, HE Sheikh Khalid bin Khalifa bin Abdulaziz al-Thani, HE the Minister of Transport and Communications and QTerminals Chairman, Jassim Seif Ahmed al-Sulaiti on 22nd December 2020.
Expansion in CT2 will be carried out in four phases. Phases 1 & 2 are completed and currently operational with an additional 1mn TEU capacity. They include 624 metres of quay length, and by the end of this year will have 7 x remote controlled quay cranes, 25 x hybrid battery type RTGs and 22 x fully electric terminal tractors.
With the completion of Phases 3 & 4 as and when the market dictates, CT2 will add 2mn TEUs annual capacity. CT1 and CT2 will then have a combined capacity of 4mn TEUs annually.
The expansion of CT2 will be an enabler for achieving Qatar’s National Vision 2030. CT2 completion will also supplement Qatar organic economic growth, Hamad Port will facilitate the expansion in the ports and logistics sector and will meet all customer needs.
7. Gulf Times understands that QTerminals has made its inroads into Black Sea, what is the update on investment in Ukraine? Are you also planning to get into the rapidly growing Asian/Southeast Asian markets? Are you looking at other regions as well?
In August 2020, QTerminals signed its first international port concession for SC Olvia in Mykolaiv, Ukraine. The 35-year concession agreement was signed by QTerminals with the Ukrainian Ministry of Infrastructure and Ukrainian Sea Ports Authority. Under the terms of the Concession Agreement, QTerminals will invest UAH2.8bn in the project, with the handover of the facility and the start of the concession planned for December 1, 2021.
Additionally, in January 2021, QTerminals completed the $140mn acquisition of the Port of Akdeniz, Turkey, from Global Port Holdings, establishing QTerminals Antalya. QTerminals Antalya has fully integrated into QTerminals Holding Company and is also now fully re-branded
QTerminals is pursuing its internationalisation strategy and is looking at other projects worldwide.
8. A focus area of QTerminals is to employ and retain the brightest talent. Equipping Qataris to support national economy is government’s top priority. What is QTerminals specifically doing to develop the national workforce in its cadre?
QTerminals talent acquisition strategy is fully aligned with the Qatar National Development Strategy and Qatar National Vision 2030. Recruiting top talent is critical to the success of any business, as employees are a key source of competitive advantage. We believe that equipping the workforce with diverse skills that can support the current and future needs of an economy is essential to the long-term sustainability of any nation.
QTerminals Top/Senior Executive Management includes several highly qualified Qatari professionals who have extensive experience in their management field:
• Scholarship Program: initiated by QTerminals and aligned with the company vision and for a limited number as per the business needs. QTerminals is planning and intends to send talented nationals to foreign universities to pursue their bachelor’s education. This will provide them the opportunity to learn and adapt new skills and techniques. During their studies, the candidates will undertake internships in Hamad Port and in other QTerminals business units overseas. After their education is complete, they shall be placed in the relevant departments of QTerminals in the capacity of permanent positions.
• Development Program: in 2019/2020 QTerminals started a trainee program with trainees (currently 2/3 candidates/employees) placed directly in development positions in various departments, where they are carefully mentored by senior managers.
• On-Site and Off-Site Training: QTerminals has a full-fledged Learning and Development programme. The goal of learning and development is to develop or change the behaviour of individuals or groups for the better, sharing knowledge and insights that enable them to do their work better. We provide technical skills development, Soft Skill Development and Quality Training, etc.
9. What are the special projects currently undertaken by the QTerminals and what are the projects in the pipeline?
Special projects include start-up of the Strategic Food Security Facility SFSF (a bulk commodities terminal to handle edible oils, rice and sugar). QTerminals will facilitate the handing (including all stevedoring works, etc.) of these food commodities at Hamad Port. Additionally, we are planning to develop an exclusive Port Ancillary Services Area which will cater to the requirements of port users in handling of their cargoes. We are also planning collaboration with Qatar Free Zone to facilitate cargo flows in and out of Qatar. We have also started handling cruise vessels at QTerminals Antalya and are planning to extend this service to Qatar.
10. What is the status regarding the cold storage and warehouse facilities being planned in the general cargo terminal of Hamad Port?
The cold storage and warehouse facilities have been handed over to QTerminals and are used for the temperature-controlled cargoes in secure covered storage facility at Hamad Port.
11. What are the future plans regarding the offshore supply terminal?
QTerminals has a dedicated offshore supply services terminal (OST). We offer berthing on arrival, provide shore water supply, arrange PCR test facilities and support crew changes. QTerminals also can provide repair and maintenance support within the OST terminal premises. In view of North Field expansion plan, we anticipate an increase in the volume of work and number of vessel calls. We have the necessary equipment, appropriate open and covered storage facilities and the operational expertise to provide seamless services to our customers.
12. Last year, electric tractors were handed over to QTerminals. What are the carbon mitigation measures being undertaken by QTerminals?
QTerminals is retrofitting its conventional RTGs for Hybrid conversion. The 26 RTG’s operating at CT1 are equipped with a constant speed diesel generator to supply power for hoist, trolley, gantry, and auxiliary operations that are also required. The constant-speed generator runs continually regardless of the operations being performed. The use of battery hybrid technology for RTGs reduces the environmental impact of RTG operations by reducing the fuel consumption and therefore harmful fossil fuel emissions.
QTerminals is replacing existing conventional lights with LED light in office, yard, and wharf.
QTerminals modified QC cranes in CT1 to use regenerated energy – kinetic recovery. In the previous system, the excess power was dissipated as heat energy while the cranes were carrying out lowering and lifting functions. The system was modified to reuse this excess power for other application such as lighting, powering reefers, and other crane auxiliary systems within Hamad Port to reduce electricity consumption and hence reduce carbon emissions.