Maximising Space

If 75 per cent of empty containers were foldable by 2010, it would amount to an estimated 50 per cent reduction in ship cargo movement costs

In an age when the whole world is screaming ‘green’ and energy conservation is the order of the day, the benefits of a foldable container need little elaboration. Prof. Anoop Chawla and Prof. Sudipto Mukherjee from the Indian Institute of Technology, Delhi – Department of Mechanical Engineering, have successfully designed a container that folds to a fourth of its size. Avinder Bindra, an ex-banker, initiated the invention.

Typically, cargo is moved in large steel containers from its place of manufacture to the market where it is sold. Containers are convenient and integral to multi-modal transport. In logistics jargon, shifting an empty container to where it is required is called repositioning. Today, entire ships are chartered to reposition empties from surplus to demand locations, which makes for poor green economics.

If trade were balanced, there would be cargo to offset the cost of return containers. A pronounced imbalance has emerged, however, in the two main Asian trades with Europe and North America. As a consequence, the ratio of empty to full containers has increased to well over 20 per cent. Result: about 2.5 million TEUs of empty containers are stored in yards and depots around the world.

Room with a view “What if all those boxes could be folded?” was a thought that came to Bindra’s mind. During his 26-year stay with Citigroup and four years with HSBC, he had a ring-side view of the two largest container harbours in the world – Hong Kong and Singapore. From his office, he could see ships loaded with towering stacks of empty containers sail by his window – returning after delivery to giants like Wal-Mart, Nike, Home Depot, Tesco and others.

A little enquiry and some research later, he found that attempts at making collapsible containers had been unsuccessful – the manual folding process was too difficult to handle, the separable parts tended to get lost during hectic transportation and the structure was not strong in spite of the high cost.

“I felt confident that a collapsible container would have enormous potential, and approached the IIT-Delhi with an offer to fund the research. Three and a half years later we have filed the patents applications,” says Bindra.

Four in the box “Four folded containers will equal one container in size,” explains Chawla. “The container will be folded and unfolded automatically with the help of a base station or platform which will be positioned at the point of origin of the empties. It will take one or two semi skilled workers to complete the job within three to four minutes. Additional containers can be stacked on the folded containers and carry the same weight load as a normal container. The collapsible container has an effective locking mechanism, is water tight and has the strength and stiffness to match original containers,” he elaborates.

Forecasting growth The CAGR, or compound annual growth rate for global container trade volumes, from 2002 to 2015 is estimated to be six per cent. Shipment is to grow from 77.8 million TEU in 2002 to 177.6 million TEU by 2015. Essner Planco Consulting, specialists in maritime development planning, estimate that the number of containers that would be handled at German ports alone will triple in the next 20 years – from 13.4 million TEU to 36 million TEU.

The persisting imbalance will see the proportion of empty containers increase to nearly 23 per cent in 2015. A US$320 billion annual US trade deficit with Asia has resulted in a near 3:1 cargo and equipment disparity favouring imports in the Pacific market. “Considering the enormous number of empty containers moved by shipping companies (about one in four), there would be huge scope for the product if accepted by the industry,” says Sailesh Garg, Director and GM, Drewry Shipping Consultants.

Design and use “The present scenario is a replay of 52 years ago when McLean invented the container to promote multi- modal transport. The now ubiquitous container was viewed then with skepticism,” comments Garg. “Once the initial glitches are smoothed, innovative uses will be found. For the present, the product has to be proved sea worthy or water tight. Reactions and comments have been positive so far,” he adds.

The Port of Singapore handles about one fifth of the world’s total container trans-shipment throughput

More efficient tri-modal terminals in the ports hinterland would allow for containers to be sorted, and then delivered just in time by rail to the loading docks. Trailers would carry four foldable empties, significantly reducing traffic at docks. Turnaround time of ships would be faster due to quicker loading of empties. Collapsible containers would contribute in various ways toward decongestion of sea ports.

Avinder Bindra

Costs and compatibility Containers make up 25 per cent of the operational balance sheet. Approximately US$16 billion of the yearly US$100 billion that ocean carriers spend operating their container assets goes towards global repositioning, according to International Assets Systems. To reimburse the costs, shipping companies impose
heavy surcharges on loaded containers that leave industrialised nations. The US$100 to US$1,000 per TEU surcharge forms a significant chunk of freight rates on sea routes to countries in Asia, Africa and the Caribbean.

“Naturally the new concept would offer big savings to container ships,” says R.P.Singh, Deputy General Manager, Ebony Ship Management Ltd (part of Noble Group, Hong Kong). “The biggest advantage is complete compatibility with existing intermodal transport equipment,” he adds. “A stack of four folded containers equals one in volume. Of significance here is no changes need be made either to handling equipment like cranes or to the design of trailers, ship-holds etc. However,” continues Singh, “the final veto will come from the classification societies such as LRS, BV or DNV for example.”

Sudipto Mukherjee

Benefits Mukherjee expands on the economics of scarce real estate in ports. “Everywhere ports are faced with a problem of space shortage. The collapsible container can conserve 75 per cent storage and space reducing traffic in port areas. In financial terms, savings can total to over US$1,000 per empty folding container, a substantial saving to shippers. Added advantages are that four containers stacked vertically will have a self locking mechanism. When stacked, the pillars will have the necessary holes for lifting and lashing on board,” says the inventor. “In this age of terrorism, the folding container ensures better security since it cannot be used as a means of smuggling,” he adds on an afterthought.

Anoop Chawla

The purchase price of a collapsible container is expected to be 10 to 15 per cent over the price of a regular one. The base station or platform will cost approximately as much as two containers. H.D. Gujrati, Group General Manager – International, CONCOR India, says, “The collapsible container will benefit domestic mass overland transport, especially where an imbalance of traffic is prevalent. Containers travel with no back haul cargo after
delivering raw material to production locations. Although the prototype was very promising, customisation of the product would help greatly. I would certainly try out the new design depending on the economics after the add-on cost of the base station.”

Customisation The new design currently offers top loading. In this regard, Garg feels that some technical modification might be required before a wider range of applications can be adopted. “Once the limitations are removed, the invention has vast potential – say in the transport of iron ore; even FMCG could be considered with a change in design.

Ship owners and ports need to get familiar with the new invention before they learn to handle it effectively. After that there will be no looking back,” Garg adds confidently.

Bindra says the team has shown the proof of concept and designs to a number of shipping lines including Maersk, CSAV, Noble Group, ZIM, APL and some port operators. The feedback has been very encouraging.

If all goes as planned for the team, the ‘off ice with a view’ may soon offer a new vista.

First published in DVV Media’s
LOG.India