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Breakbulk April 2018

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12 The Journal of Commerce | April 2018 Breakbulk & Project Cargo More than one-third of the increase was in China, which added 11.7 gigawatts. Other countries hosting new deployments included Ecuador, Ethiopia, South Africa, Vietnam, Peru, and Switzerland. In addition to construction of new plants, existing facilities under- go periodic upgrading and mainte- nance, which also generates project cargo shipments. Two years ago, hydroelectric transporters moved via the Port of Vancouver, Wash- ington, on an 11,341-mile transit from Sweden to Dalles, Oregon. The International Hydropower Associa- tion forecasts that by 2050, half of the current hydropower equipment in Latin America and Asia will un- dergo extensive modernization and maintenance. Dams and hydroelectric plants aren't the only source of project cargo related to drinking water. Henry Moreno, a water supply and sanita- tion specialist at the Inter-American Development Bank, said many Latin American cities such as Sao Paulo and Lima are suffering serious water shortages, not just because of short supplies but because supplies are unfit to drink. Moreno said the most common reaction is to build hydropower and wastewater plants that address short- term water shortages but fail to address pollution, leaky pipes, and decrepit infrastructure. He said cities such as Panama City, Sao Paulo, and Medellin are working to reduce pollution and improving existing infrastructure in addition to adding supply. In the US, more than half of US municipal water and wastewater infrastructure is nearing the end of its useful life. Over the next decade, municipal utilities are expected to make about $500 billion in capital improvements to address Ameri- ca's deteriorating water and sewer systems. Desalination is another source of water-related project shipments. Israel has invested $500 million in the Sorek Desalination Plant, the world's largest seawater desalination plant. The plant, 10 miles south of Tel Aviv, supplies fresh water for 1.5 million people, nearly 20 percent of the country's population. Built for the Israeli government by IDE Technologies, Sorek uses waned in many regions, new projects continue in countries such as Brazil, Colombia, Ethiopia, and Laos. In Brazil, the Bel Monte plant on the Amazon will be the world's fourth-largest in hydroelectric capac- ity and will have a cost that industry analysts say could top $18 billion. In Colombia, the $5.5 billion Ituango plant is under construction on the Cauca River. China Gezhouba Group Corp. is building the Genale Dawa III plant in Ethiopia. China's Sinohydro is managing construction of the Don Wahong hydropower project in Laos. China has been active in con- struction of water-related projects in developing nations in Africa and in countries such as Papua New Guinea, where China's PNG Hydro Development is building the Edevu Hydro project, which will provide an alternative water supply along with electricity. The World Commission on Dams estimated that hydropower capacity increased 2.6 percent, to 1,246 giga- watts, in 2016, the most recent year for which statistics were available. WATER TAPS FOR the 4 million inhab- itants of Cape Town, South Africa, could run dry as soon as July because of a sustained drought. Sao Paulo, Bra- zil's largest city, has had water shortag- es so severe that armed convoys have had to accompany tanker trucks. Those aren't isolated cases. Droughts, pollution, and poor resource management have threat- ened water supplies in other cities as widespread as Cairo, Eqypt; Lima, Peru; and Mexico City, and in small- er cities and rural areas throughout much of the world. Water projects to supply drink- ing water, hydroelectric power, and sewage treatment are major sources of shipments for engineer- ing, procurement, and construction companies, and for forwarders and breakbulk carriers that deliver ma- terials including pipes, turbines, and modules for water treatment plants. Construction of new dams and reservoirs attracts attention because of their size, cost, complexity, and need for project shipments, often over long distances and difficult terrain. Heather Cooley, water pro- gram director at the Pacific Institute, said these projects are increasingly concentrated in developing coun- tries that provide water along with reliable electrical power. In many developed countries, such as the US, dams hydropower projects are no longer seen as the best way to generate water along with electricity. "They've already dammed up all the best sites — even some pretty bad ones," Cooley said. "The cost of developing more proj- ects is incredibly expensive, and the benefits that you get are less than previous projects." Though the era of big hydroelec- tric power construction projects has Whetting appetites of project carriers Worldwide need for water works alters demand for services of carriers and forwarders By Alan M. Field 3,800 water pipes, in three shipments, were discharged in Dar Es Salaam last year and trucked to a project site in Ndola, Zambia. Worldwide Project Consortium

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