Cargotec: A Global Supplier for Defence Forces

Cargotec, a global leader, offers defence forces specific needs proven cargo handling solutions through specific application engi

Date: Issue 18 - October 2009

1-First of all, could you please inform us about your organization, group companies and history?
Cargotec improves the efficiency of cargo flows by offering handling systems and related services for the loading and unloading of goods. Cargotec’s brands, Hiab, Kalmar and MacGregor, are global market leaders in their fields and their solutions are used on land and at sea – wherever cargo is on the move. Extensive services close to customers ensure the continuous usability of equipment. Cargotec is the technology leader in its field with its R&D focusing on innovative solutions that take environmental considerations into account.

Cargotec was formed as late as in 2005 through a demerger. However the industrial origin of the company dates decades back in history.
Today Cargotec has activities with own personnel in 100 countries, manufacturing activities in almost 20 countries, and employs 11000 people. The revenue of the company in 2008 was € 3,4 billion.

2- What are the core services, activity line of Cargotec?

The company operates, as you can understand from its name, in the cargo handling area. The offering consists of marine solutions (MacGregor), port and terminal container handling solutions (Kalmar) and truck-related load handing solutions (Hiab).

Kalmar is the global market-leading brand in container handling solutions in ports and terminals where containers are handled by ship-to-shore cranes, yard cranes, shuttle and straddle carriers, reachstackers and empty container handlers. Moreover, Kalmar forklift trucks are used by heavy industry, Kalmar log stackers are used by the wood and paper industry, and Kalmar terminal tractors are used by distribution and logistics centres. Every fourth container or trailer transfer at terminals around the world is handled by a Kalmar machine.
Hiab provides services in truck-related load handling solutions. Customer-driven Hiab on-road load handling products and solutions are utilized in moving goods and materials on the road, for example in construction sites, forests, industry, waste handling, recycling and by the defence forces.

The product range includes Hiab loader cranes, Loglift and Jonsered forestry and recycling cranes, Multilift demountable systems, Zepro, Focolift, Ama, Del, Ultron and Waltco tail lifts and Moffett and Princeton PiggyBack® truck-mounted forklifts.
MacGregor is the global market-leading brand in marine cargo handling and offshore load-handling solutions. Customer-driven MacGregor engineering and service solutions for the maritime transportation industry, and the offshore load-handling and naval logistics markets are used onboard merchant ships, offshore support vessels, and in ports and terminals

Could you enlighten us about your services in military logistics?
In all of Cargotec’s solution areas the company has been active and successful in offering logistic solutions to defence forces worldwide.
Naval ships need sophisticated ramps, cargo elevators etc. which are supplied by Cargotec.
ISO containers are widely used in creating efficient and fast deployment of materiel and supplies, often in difficult terrain conditions. The offering consists of big machines allowing lifting of these containers.
Trucks are the backbone of the military in supplying the theatre with support. The trucks need cranes and hooklifts for efficient operation.

3- In terms of military services, how could you evaluate the improvements in figures in 2008? What are your goals and strategies for 2009?
There has been a long trend to improve the logistical efficiency of the defence forces in many countries. With unstable situations and international cooperative actions the need for equipment has increased. Although defence products are only a small portion of Cargotec’s revenue the importance keeps increasing.
In 2009 there are many defence acquisition programs to be delivered.
Cargotec has also finished the construction of a new plant in Texas, US for the manufacturing of Rough Terrain Container Handlers for US Army, US Marines, and for US Foreign Military Sales.
New demands are continuously activated and development required meeting the targets of the customers in these.

4-It is known that Cargotec services were combat proven in Yugoslavia, Iraq and Afghanistan. Could you inform us your clients in defence field and achievements taken with these clients?

Cargotec has references in more than 30 countries worldwide in the field of defence forces. US Department of Defence is the biggest single end customer. Cargotec provides military logistics services the armed forces of most of the European countries, many countries in Asia and North America, and to Australia.

Many of the most modern naval logistical ships are equipped with MacGregor ramps, cargo elevators and cranes.

Cargotec’s Rough Terrain Container Handlers for the backbone of container deployment for the US Army and The US Marines. In order to support this need Cargotec has established a new manufacturing facility in Texas, US.
Most of the modern truck programs include both hooklifts and cranes to allow for efficient deployment of materiel. Cargotec supplied altogether 548 hooklifts and 130 cranes to the Dutch defence forces some years ago. The Scania trucks have good terrain capability but are also to be used in on-road conditions and thus able to pass under standard 4 meter bridges. In addition to the equipment supply of this Dutch WLS order Cargotec handled the equipment installation and also made a 13 year service contract to maintain a high service level of the vehicles supplied.

5-Could you please inform us about your new logistic concepts and R&D activities to meet new military challenges?
Container handling in general is becoming more and more important also in the field of defence to which there is new development for the sophisticated needs. Safety and precision requirements are also being met in the many defence related development projects.
A very interesting development project is delivered to US navy this autumn (2009). In order for US Navy to be able to continue the development of its Seabasing concept, in which Cargotec is an important partner, there is a development of a ramp concept to allow tanks to move from one ship to another in rough sea conditions. The ramp is more than 30 meters long and is designed to carry the more than 70 ton weight of a tank. The waves can be 2,5 meters high. The winches carrying the ramp are heave compensated, i.e. they react to the waves moving the ships and thus keep the ramp able to carry the vehicle passing it. He heave compensation system has been developed for the offshore industry and is now introduced into a naval ramp solution very successfully.

Another interesting technical development is Cargotec’s radiation sensoring technology for ports. US will from July 2012 demand that all containers arriving in US ports are scanned for radiation. Cargotec Port Security LLC based in North Carolina, US, has developed a system for radiaition detection to be integrated in the lifting equipment used in ports. By using this integrated technology the radiaition detection does not hinder the normal flow of containers.

6- What are your strategies and plans towards Turkey to strengthen the collaboration with Turkish Defence Forces and Turkish Defence Industry? Could you inform us about your activities carried out by Cargotec?
Cargotec is actively seeking new opportunities of collaboration with defence forces. The Turkish Defence Forces are strong and there are already some truck programs where Cargotec is involved.
Cargotec was one of the innovators in the idea to build stronger ties between Turkey and Finland both in the area of Ministries as well between the countries’ industries.