A magazine about Lifting Businesses TM
6 MISSION IMPOSSIBLE?
Refurbishing cranes at isolated
power stations in Tasmania
13 UP NORTH
Iron ore mining is highly automated
at LKAB in Kiruna, Sweden.
18 ART OF OUTSOURCING
Outsourcing requires trust and
Is D NKON
su EW ECR
e MA AN
#1 GA ES
Kenya Ports is growing
Konecranes Editor’s note
Since I started working for Konecranes in the autumn of 2006, I have noticed
the fast development that the company is undergoing, both from a structural and
operational, as well as a visual point of view. In fact I joined Konecranes when
the company was right in the middle of the brand development process, and part
of my responsibility today is to make sure that the presentation of Konecranes is
coherent in all our marketing and communication channels.
The reason for changing our brand is partly due to the fact that Konecranes had
grown out of its own clothes and that our customers, potential customers and
stakeholders need to know in a clear, precise and consistent way, what we at
Konecranes stand for. This is also the reason why we have changed the name
of our external magazine from “Konecranes World” to “Way Up”, and the idea
of this rebirth and the aim of the magazine, is really to capture the essence of
our promise, Lifting Businesses™. Our high tech cranes are an integral part of
customer production processes and the planned and proactive service offered by
Konecranes increases our customers’ productivity. Thus the new name indicates
how we pave the way for our customers’ businesses going upward.
The goal of the magazine is to enhance the contacts with our customers and to
intensify relationship building. It is an important tool for providing our readers with
information they experience as valuable for their business. And ﬁnally, it is also
a strong and important means for building and enhancing the signiﬁcance of the
Konecranes brand and corporate image globally.
“Way Up” is about shedding light on how we lift our customers’ businesses, both
through our innovative crane technology and our dedicated approach to crane
service. We want to portray the exciting environments where Konecranes is present
both from an industrial as well as a geographical perspective, and demonstrate
how our products and services keep things running for our customers.
This ﬁrst issue of “Way Up” takes you to as varied places as Tasmania, Kenya,
Northern Sweden and Germany with featured articles on how our customers’
experience our equipment, the value of long-term relationships, the importance
of life-cycle management, and the slightly peculiar application of our equipment
in this issue, to a cheese factory! You will also ﬁnd articles on the importance of
outsourcing, our latest technology applications, as an insert Konecranes Safety
Policy Statement as formulated by President and CEO, Mr. Pekka Lundmark,
as well as his presentation on how we deliver upon our brand promise “Lifting
I hope that you will ﬁnd the new magazine interesting. Enjoy your reading!
Year of records Sales by Business Area Sales by Market Konecranes’ presence
was broadened both
In 2006, Konecranes’ geographically and in
Business Areas were 17% new customer industries
renamed and are now called 31% 37% 31% through acquisitions and
Service, Standard Lifting strong organic growth.
and Heavy Lifting. It was a 17% The acquisitions of
record year for sales and Stahl CraneSystems at
orders in all Business Areas. the end of 2005, and
Proﬁtability also improved 32% 35% of MMH Holding Inc. in
to record levels and the May 2006 are the two
previous long term EBIT- largest acquisitions in
margin target was exceeded Standard Lifting MEUR 578 EU (excl. Nordic) MEUR 462
Konecranes’ history. They
in Service. Service MEUR 513 Americas MEUR 512 contributed considerably
Konecranes’ market Heavy Lifting MEUR 491 Asia-Pasiﬁc MEUR 255 to growth in net sales,
capitalization doubled. Nordic and Eastern Europe MEUR 253 orders and proﬁts.
2 KONECRANES MAGAZINE
Kiruna in Sweden is Konecranes’
northernmost service operation
in the world.
Hydro Tasmania produces 90 per
cent of island state’s electricity.
With the help of Konecranes,
Hydro Tasmania upgraded their
outdated bridge cranes.
4 LIFTING SOLUTIONS
Co-operation between Wärt-
silä and Konecranes is going
Check out the most important
THE AFRICAN WAY
trade shows and exhibitions. The Port of Mombasa is alive
12 AGENDA and kicking, serving nearly 400
Pekka Lundmark, President and million inhabitants. The Port has
CEO of Konecranes: How do we
deliver upon our brand promise? set out on a mission to enhance its
30 TECH #1Calculating Tools make
attractiveness and competetiveness.
designing a crane quicker and
32 TECH #2 ART OF
With RopeQ you know exactly
what condition your wire ropes
Concentrating on core business enables
34 EXOTIC Konecranes is helping the
focusing on the main competence areas.
Two specialists explain when it’s wise to
cheese production in Hamburg. outsource and when it isn’t.
Publisher Konecranes, P.O.Box 661 FIN-05801 Hyvinkää, Finland, Telephone +358 20 427 11, www.konecranes.com
Editor-in-Chief Mikael Wegmüller Managing Editor Fredrik Wicklund Production and Graphic Design Kynämies Oy,
Helsinki, Finland Team Leader Teija Laakso Sub Editor Jaana Kalliokoski Art Directors Miikka Leinonen, Väinö Teittinen
Graphic Design Taina Rauhamäki Translation English and German versions: Nouveau Koulutus Oy Printed by SP-paino,
Hyvinkää Cover Photo Arto Wiikari ISSN 1796-9700 Please send your feedback to: firstname.lastname@example.org
LIFTING SOLUTIONS Story by Antti Hentinen
Wärtsilä Power Plants and Konecranes have
reached a partnership level where all parties win.
-operation between The demand for power plants “Actually, it’s like building with
CO Konecranes and Wärtsilä
Power Plants began in the early
is currently very high all over the
world. As growing economies require
giant Legos. A Power Module could
be delivered to the middle of a jungle.
1990s, when they signed their ﬁrst additional electricity, large number of Its foundation and construction goes
annual agreement. Since that time, orders are constantly coming in. quickly. Plug and play.”
annual agreements have formed an In Europe, the greatest interest The more than ten years of co-
established protocol, which strives for is concentrated on natural operation between Wärtsilä and
transaction convenience and allows gas and biofuel-operated, Konecranes is based on many factors.
both parties to focus on their own combined heat and power The annual agreements have proven
business. plants. Elsewhere in the world, to be trouble-free and cost-effective,
“All our power plant products the major focus remains on fuel but a deep partnership requires a great
are based on highly standardized oil-operated power plants. deal more.
concepts. The annual agreements Fast deliveries are one of Wärtsilä’s “There are many reasons for
are used to ensure that, for every top sales advantages. After signing the working in such close co-operation with
new project we receive, the price power plant agreement, work at the Konecranes, but the most important
and technology for the required site can begin within just a few days. reasons are, absolutely, certiﬁed
components are already in place. So, Konecranes’ lifting equipment plays a and environmental quality, delivery
the actual order requires nothing more Last year, key role during the construction phase. reliability, total cost of ownership and
than the push of a button. We are Konecranes “Materials are transported to the being a global company with a local
shooting for fast deliveries, so there delivered 25 site as work progresses. Cranes are network for service, maintenance and
is simply no time for negotiations or cranes with a at the leading edge of transports spare parts.”
shopping for parts when starting a new lifting capacity because they are needed a great Long-term agreements are also
project,” explains Purchasing Manager from 1,000 deal during construction. When the used for the continuous improvement
to 10,000 kg
Fredrik Olson, of Wärtsilä Power Plants. and 17 light power plant is ﬁnished, they function of co-operation, information ﬂow and
lifting cranes as service cranes, which means products, bearing in mind the costs.
INVESTMENT IN for loads of that the frequency of their utilization “We Wärtsilä engineers aim to work
PRODUCT DEVELOPMENT 500-1,000 kg, goes down. Their most crucial role in co-operation with supplier engineers
“Wärtsilä manufactures clean, high- is deﬁnitely during the construction toward standardizing products to
quality products. Thanks to reliability, phase,” Olson explains. achieve the lowest total cost for
fast deliveries, and major investments functionality. A true win-win situation,
in R&D, we have managed to achieve a RELIABLE PARTNER with continuous total cost reduction,
good reputation and market position,” The modern power plant concept was taking into consideration all related
says Olson. developed as clearly as possible. costs,” Olson concludes.
4 KONECRANES MAGAZINE
CALENDAR Events around the world | Spring/Summer 2007
FACT SHEET May 2007: TOC EUROPE 2007 the Terminal
Operations Conference and
COKING.COM – Process Training Exhibition
WÄRTSILÄ IN BRIEF and Safety Seminar 19–21 June, Istanbul, Turkey
7–10 May, League City, Texas The Shipping, Ports and Terminals
Wärtsilä provides engines, equipment, solutions Event for Europe. Staged for the
and services for the marine and energy industries. ﬁrst time ever in the continental
DCI BULK CONFERENCE
Roughly divided into Products, Ship Power & EXHIBITION crossroad of Istanbul, the 31st
and Power Plants, manufacturing represents 9–10 May, Hamburg TOC Europe conference keeps the
approximately half of the company’s net sales. spotlight ﬁrmly on the productivity
The other half is comprised of Services, and CONSTRUCTION of ports and the total maritime
Maintenance & Management. & SHIPPING INDUSTRY transport chain. In the face of
15–17 May, Gorinchem ever-increasing growth and scale,
Wärtsilä is a leading supplier of power plants how will the maritime industry
for the decentralized power generation market. ensure the necessary service
Wärtsilä offers power plant solutions for oil, levels to support the demands of
17–18 May, Malta
gas and dual fuel engines, as well as biomass- international trade?
fuelled heat and power plants. The company is
NAWTEC North American
the market leader in the heavy fuel oil market
segment. The goal is to achieve 20% in annual 21–23 May, Miami, Florida
combined growth for the natural gas, oil and
biofuel segments. Its success factors are high- MATERIALS HANDLING
quality, clean engines and highly conceptualized & LOGISTICS
product solutions. 27–29 May, Dubai
At the end of 2006, Wärtsilä Power Plants
delivered a total of 36,200 MWe in decentralized
power plants all over the world in base and June 2007:
intermediate load power plants, with a power
range of 1-300 Mwe. WINDPOWER 2007 September 2007:
CONFERENCE AND EXHIBITION
3–6 June, Los Angeles, California BULK PORTS
Key market areas are Africa, & TERMINAL TECHNOLOGY
the Americas, Asia, Europe, PORT FINANCE & INVESTMENTS 18–19 September, Amsterdam
and the Middle East. 11–12 June, Amsterdam
The company was founded in 1834 in Tohmajärvi, 5TH ASEAN PORTS 24–27 September, St Petersburg
Finland. At present, Wärtsilä has 1,200 AND SHIPPING 2007
employees, 130 ofﬁces and representatives in 60 12–13 June, Johor Bahru, Malaysia NATIONAL MANUFACTURING WEEK
countries all over the world. 25–27 September
NOR-SHIPPING Chicago, Illinois
12–15 June, Oslo
4TH THAI PORTS
PORTS & ENVIRONMENT AND SHIPPING 2007
14–15 June, Amsterdam 27–28 September, Bangkok
AIST Crane Symposium
10–13 June, Cleveland, Ohio
This conference will deliver cranes and their runways the
practical information and safest, most reliable, durable
experiences from crane machinery and equipment in
maintenance personnel, the steel plant. Process Crane
crane manufacturers, Sponsored.
and engineering consultants http://www.aist.org/conf/07_
who strive to make the EOT crane_symposium_program.htm
Story by Leena Lavonius Photos by Rick Eaves
6 KONECRANES MAGAZINE
agreed to refurbish
decades-old cranes at
isolated power stations
in Tasmania. No one
knew how much work
ne word is enough to describe the latest
challenge for Konecranes in Australia:
“big”! Upgrading bridge cranes at the
power stations took over two and a half
The project is a perfect illustration
of Konecranes’ commitment to service,
regardless of the make and model of the
equipment. 12 different cranes were commissioned and installed
over a period of more than 30 years.
Despite the work taking place in an isolated part of Tasmania,
south-east of the Australian mainland, the project was on a scale
Konecranes had not previously tackled in Australia. It required
long-term commitment and working seamlessly together with the
client. It was only after the work had started that the complexity
of the project was fully unveiled. The project commenced in
September 2003 and was completed in March 2006.
Hydropowered island state
The client, Hydro Tasmania, operates Tasmania’s hydropower
stations and is a major force in the island state’s economy. More
than 90 per cent of all electricity in Tasmania comes from
hydropower stations. In a push for sustainability, the rest is
generated by wind farms and thermal facilities.
The project led to Konecranes signing a further inspection and
maintenance contract with the client. Furthermore, key members
of the Tasmanian team won individual awards of excellence.
Konecranes’ President in the Southeast Asia Paciﬁc-region, Mr.
Edward Yakos, praised every member of the Tasmanian team.
“Their excellent work led to a three-year service maintenance
agreement for the region, including additional work within Hydro
Tasmania’s Gordon and Derwent systems. This is further proof that
because Konecranes services more than 260,000 cranes worldwide,
it has a unique understanding of how to repair and maintain lifting
equipment of all makes and models, regardless of age.’’
Konecranes previously had a maintenance partnership with
Hydro Tasmania from the year 2000.
Did you know The cool climate
has made Tasmania synonymous
with quality wines, and the
cheeses produced on the island
are gaining fame. Tasmania is TASMANIA
also famous for exquisite fruits.
Condition unknown An audit by an independent managing the complex project. No
The Hobart-based Konecranes engineering consultant in 2002 one knew the whole scope of the
project coordinator, Steven Paine, formed the basis of what had to be work before the project had started,
said that the challenges of upgrading rectiﬁed – over 900 items in total so estimating the cost and the time
12 bridge cranes at 10 locations had for the 12 cranes. needed wasn’t easy. The cranes were
been numerous and some were only Some things were as simple in worse condition than expected.
discovered as the work progressed. as making sure a horn was That’s why the scope of the work
“The cranes were built between clearly audible or an expired ﬁre was much larger than the original
the 1930’s and the 1960’s. We often extinguisher was replaced. audit had implied.
had no original drawings and no Others were much more A private consultant company
details of the original commissioning complicated and required was employed to act on Hydro
to go by. The scope of the work was major electrical work and Tasmania’s behalf. Mr. Jack
only revealed once we started the a general rethinking of the Bartimote, Principal Consultant
refurbishment. It was only when way the cranes would be best with the Melbourne-based company
we started the work that we realized operated. LMA Partnership, oversaw the
most of the cranes needed complete “All cranes complied with project from beginning to end.
rewiring,” Payne says. the safety standards in place The project started as tendered
The wiring had overheated when they were installed and works in which Konecranes was
many times over the years and the The 61-metre-
in working order. Nevertheless, competing with other companies.
protective vulcanized rubber coating high Clark the registration meant that all cranes
had disintegrated, something the Dam was now had to comply with present Control over quality
Konecranes team only discovered sir Ernest regulations,” Paine says. In June 2004, when the whole scope
once they took out the rubber Clark. It was Another major challenge was and the complexity of the project
coating. 1951. became evident, the client agreed
Moreover, some of the cranes that Konecranes would perform the
had no earth connections. work on a do-in-charge basis. Mr
“We put in new safety devices. Bartimote said this was dictated by
All the cranes now have proper the circumstances and the client’s
dedicated earth connections, and need for control over the quality of
we installed measures to protect work.
the motors from overheating where “The client needed to have
necessary. We also changed the old control over what was being done
stick and arm control systems to and where; and how the money was
modern ones that use joysticks.’’ being spent. With tendered projects,
all the client can do is sit back and
A need to register watch as the contractor decides
The refurbishment was necessary, The Tarraleah where the money is spent. This way
because the client was required to power station we could follow the project in great
register the cranes with the local oldest station detail.”
work safety authorities. This meant still operating. The oldest crane refurbished
It has six
that all cranes needed to comply horizontal in the project is at Tarraleah power
with modern regulations. turbines. station in Tasmania’s highlands.
8 KONECRANES MAGAZINE
is 140 metre
high. The dam
is part of a
network of hydro
Tarraleah is the oldest hydro
power station in the state still
operating. Next year marks the 70th
anniversary of the station’s opening.
Tarraleah is not just a fully- “THE OLD EQUIPMENT
functioning station with six turbines WAS BUILT TO LAST.
THE DESIGN IS SIMPLE,
and a capacity of 90 mW. It is also
an important piece of industrial
heritage. The station was built in
the ornate art deco style of the
THE MATERIALS ARE
1930’s, with an impressive entrance TOP QUALITY.”
hall, beautiful stone ﬂoors and – Sujit Dutt, Hydro Tasmania
detailed windows. Many of the
features of the station must not be
A Learning process
The Hydro Tasmania Project
Manager, Sujit Dutt, said that
age was not an indicator of the
crane’s condition, since it was used
infrequently for maintenance work.
“Our cranes are not used in
regular production work, so the
wear and tear is not anywhere near
what it would be if the crane was
in constant use. Besides, the old
equipment was built to last. The
designs are simple, and the materials
are top quality. The oldest turbines
at Tarraleah are from the 1930’s as
well, and they still are going strong.”
Heavy loads would normally
only eventuate when the turbines
needed to be lifted for maintenance.
However, the list of features to be
rectiﬁed prior to registration for
the one crane was 38 items. Some
were easy to ﬁx, but as there were no
original electrical design documents,
the team ﬁrst had to work out every
detail of the crane.
The crane’s service history also remained unclear
as there were no records of the manufacturer’s
recommendations and of maintenance work carried out.
“We always started from a worst-case scenario.
This work was carried out for safety purposes, so we
made absolutely sure we did everything and checked
everything,’’ says Paine.
Only new parts were used to replace the old. The
refurbishment of the cranes in the project took, on
average, four to six weeks per crane. All 12 cranes
refurbished in the project are located in the highlands’
power stations on the same river system as Tarraleah.
The team started working on one crane at a time.
As the project progressed, the work became easier. “The
ﬁrst refurbishments took the longest time because we
didn’t know what to expect. After the ﬁrst couple of
cranes, we knew how we could do certain things, and
the work got easier and quicker.’’
The learning process was not conﬁned to the
ﬂoor of the power stations. The reporting practices
and project management also evolved. Mr. Bartimote
continuously assessed Konecranes’ performance and
his rating readings rose steadily with time. By the
completion of the project, Mr. Bartimote recommended
that Konecranes perform large-scale professional work.
“The isolation and being away from our families
Isolated locations certainly was challenging, especially as time went on.
Another challenge was posed by the location of the Many in the team had young children.’’
sites, since the team was required to live locally during The team agreed to work 10 hours a day for nine
The Tarraleah the working week. The power stations are in remote
crane has been days every fortnight, like Hydro Tasmania’s staff at the
in use since locations and the roads are often slippery with snow in sites. Some team members were based in Hobart, on the
1930 thanks to the cold Tasmanian winter.
regular upgrades island’s south-east, while some came from the north.
and continuous “It was the only way to do the project. For some Another challenge for the team was working on the
service. Steven team members, it would have been a two-hour drive
Paine (in the cranes while they were needed for normal work at the
middle) showing each way. On top of a 10-hour day at work, that would power stations. Downtime for the cranes was kept to a
the new controls have been plain dangerous, so we decided to stay in the
of the crane to minimum.
Sujit Dutt (in the area during the week,” says Paine.
Communicating with Hydro Tasmania personnel on
site while on site was vital. “It was their workplace, and
they were the ones using the cranes. It was important
that everyone knew what we were doing and why,’’ says
Since the refurbishment, there is more consistency
in the way the drivers operate the cranes. “Sometimes
drivers were not familiar with how they should operate
a particular crane, the controls have changed a lot since
the older ones were built, and the drivers would only
have experience in using modern controls. Sometimes
this could lead to the motor overheating. We have now
installed safety measures and stops to prevent that,”
10 KONECRANES MAGAZINE
SMALL IS BEAUTIFUL
Tasmania is certainly unique: The smallest state
in Australia is an island that is remote – no matter
where you are coming from. From mainland Australia,
Tasmania is an hour’s ﬂight away. From Europe,
it is almost as far away as you can travel, since it
is located between the Australian mainland and
Antarctica. This fact, and the island’s rugged nature
explain why Tasmania is so sparsely populated. The
entire island is home to less than 500,000 people.
Like mainland Australia, Tasmania was a British
convict colony in the 19th century. Then known as Van
Diemen’s Land, it was where the Empire sent its worst
offenders. Back then, the island’s freezing winds, cold
winters, hot summers and rough terrain were regarded
as severe punishment. These days, the wild, unspoilt
nature of Tasmania is its biggest trump card.
The island is famous for wildlife that is exotic even to
other Australians. The Tasmanian devil,
a marsupial predator the size of a
small dog, has a screech
that can make anyone’s
hair stand up. This is what
earned it the name “devil”.
The bottom part Another uniquely Tasmanian
of the power predator species, the thylacine
station houses the
turbines. Water or Tasmanian tiger, was
enters the station hunted to extinction during the
on one side, spins last century. Scientists are
the turbines and attempting to bring the species
ﬂows out the other
side. back by using DNA collected
from long-dead animals kept in
Tasmania is popular as a unique tourist destination,
No one Konecranes also produced new speciﬁc operating with its mountains, rivers, rugged beaches and
manuals for each of the refurbished cranes. “We are picturesque towns.
knew always prepared to provide training in operating a Hobart, the island capital, is a thriving town
the whole speciﬁc crane. They are all different, and often with of about 200,000 inhabitants. Its charm is in the
proper training, problems can be avoided altogether.” Georgian buildings, lively waterfront and beautiful
scope of parks. Hobart was built on a friendly, small scale. It
has only a few modern multi-story buildings. A visitor
the work Awards for effort can easily walk around the city, taking in the well-
before the On completion of the project, LMA Partnership preserved heritage buildings and enjoy a relaxing drink
issued Certiﬁcates of Excellence to Konecranes’ key at the numerous bars in Salamanca Place and the
project personnel. Steven Paine was recognized for excellent historic Salamanca Square.
started. project management; head electrician David Green There are several lovingly-restored private houses
for electrical design and outstanding workmanship; which have been turned into hotels – the rooms are
often true-to-style with clawfoot baths, ﬂoral designs
Keith Berwick for outstanding workmanship and and period furniture.
Rodney Abblitt for dedication to quality and physical
“They were truly earned. This project showed that
when a project is well-managed, people know what
is expected of them and they are trained to do those
things,’’ Mr. Bartimote says.
Mr. Paine agreed that the team had learned a lot
while working on the project.
“This was on a scale we had never tackled before
and we had little experience in do-in-charge projects.
Now we know we can do it. We are also happy that
Hydro Tasmania has chosen to extend our contract in
servicing their cranes in the southern part of the island
for another three years. That means a lot to all of us.’’
Konecranes’ brand slogan
“Lifting Businesses ” ™
is a promise to lift our customers’
businesses to a new level.
Our global service network, leading technology and strong market
position provide us with a solid foundation for even closer partner-
ships with our customers.
Our competitiveness and leading position derive from a strategy that
combines professional crane service with innovative crane technology.
We are constantly developing new service concepts and want to
be our customers’ long-term partner, who handles all crane service
requirements reliably, cost-effectively and with prevention i mind.
Konecranes’ service is very comprehensive and covers all activi-
ties needed for safe, reliable and uninterrupted lifting operations
– from spare parts services, repairs, on-calls, and crane inspections
to full-scale preventive service programs, performance upgrades and
modernizations. The fewer shutdowns or malfunctions there are in
the customer’s lifting equipment, the more productive their business
Our customers’ investment in industrial and port cranes accounts for
approximately 25–35 per cent of their entire lifetime costs. While the
typical effective lifetime of a crane is up to 30 years, service accounts
for as much as 75 per cent of the overall costs. Currently, a majority
of the crane industry customers handle their own crane service.
However, ﬂawless operation and safety of cranes are crucial factors in
ensuring a successful, smoothly-run business, and as a consequence
more and more industries decide to outsource crane service to experts
in the ﬁeld.
At present we have over 260,000 cranes in our service contract base,
80 per cent of which comprises cranes from other manufacturers.
This is a strong indication of our extensive knowledge of cranes
and provides us with an important competitive advantage in the
development of new crane technology. To ensure that our products
are always at the top of the range, product development is a
continuous task for our R&D, which has an undisputed reputation
in the industry.
Today over 90 pert cent of our annual
service agreements are renewed.
We have earned this trust among our customers through our
unique knowledge, innovative technology, as well as our responsive
service attitude. We strongly believe in our own abilities and dare to
make promises, where we tie our success to that of our customers.
By delivering safe and reliable lifting equipment and service,
we reduce the total cost of ownership for our
customers and provide them with a good
return on investment.
This is what we are all about –
– Pekka Lundmark
President and CEO, Konecranes
12 KONECRANES MAGAZINE
Story by Risto Pakarinen Photos by Janne Lehtinen
This article starts a series which introduces
the crane’s Life Cycle by describing
customer’s business. This is about LKAB
Sweden and the role cranes play in their
Twenty years ago, Konecranes took over the service and maintenance of all cranes and
motor-powered industrial gates at the Swedish LKAB’s mines and sites. What started out
as a buyer-seller relationship has matured into a partnership where each party can focus
on what it does best. Today, LKAB operates over 600 cranes, and Konecranes services
LKAB’S Kiruna mine is as busy as ever.
Despite the fact that it is only 6.30 in the morning,
the sun has been out a few hours and the mining
NORWAY community is in full swing. The town of Kiruna was
built around the mines, and they dominate the skyline.
This is challenged only by Mother Nature and her
Way up on concrete blocks, where the roof of the
new palletizing plant will be built, three Konecranes
servicemen are working on a crane that will be installed
there. While the cranes are mostly used for maintenance
of the furnaces and other production equipment, they
are integral to the mine.
These days, mining has gone high-tech, and
any images of miners with hard hats and ﬂashlights
chipping away in a narrow tunnel are best left behind.
While LKAB (fully owned by the Swedish state)
employs close to 3500 people, the mining is highly
automated. LKAB switched over to remote-controlled
ore trains in the 1970s in the Kiruna mine, and today,
even drilling and loading are handled by remote
A ﬁfth plant coming up
Another sign of development is the fact that the shifts
do not have foremen anymore. The miners on the shift
take care of the production on their own.
LKAB mines and upgrades iron ore for steelmaking.
The company’s main products are iron ore pellets and
magnetite products that are used in
steel factories. The pellets bring in
close to 80 percent of the company’s
sales of about 15 billion Swedish
krona (1.8 billion euro).
Currently, LKAB has four full-
scale palletizing plants in operation,
located in Kiruna, Malmberget
and Svappavaara. A ﬁfth plant is
being built in Kiruna as part of an
18 billion Swedish krona (2 billion
euro) investment plan that includes
the pellet units and the opening up
of a new main level. In the future,
the Kiruna mine will become a
Ulf Gräsvik from LKAB explains
that the Malmberget mine is at the 100-percent pellet supplier, and to facilitate the move,
1,000-meter level. At the same LKAB is building the new pellet mill.
time, the planning of the next main
level, at 1,250 m, has already “The board has made a strategic decision to invest
begun. In Kiruna, the next main in additional pellet production capacity here, to increase
level, at around the 1,365-meters,
is in the planning stages. it from 8.8 to 14.8 million tons annually,” says Ulf
Gräsvik, Project Manager of the construction. “Right
now, in the construction phase, the cranes are essential.
14 KONECRANES MAGAZINE
We use them every day. Once the production is under
way, we will need them to move heavy machinery for
maintenance, both here and in the mines.”
Service is the key
A mine is a special environment, that calls for special
services. “The vertical space is always an issue, and it
requires unique solutions. And sometimes we need help
to get the full beneﬁts out of the cranes, so Konecranes
makes the calculations and lets us know how we can
optimize the cranes’ capacity. The key to the long
relationship is service,” Gräsvik notes.
“LKAB decided to outsource the maintenance
and service of their motor-powered industrials gates
and cranes, and even if we didn’t work with gates, we
wanted to have a chance to enter the crane business.
We decided to send in a proposal for the whole
project,” says Bertil Petäjävaara, Business Line Director,
Today, Konecranes is a full partner, with a team of
15 men servicing over 600 cranes in LKAB’s mines in
Kiruna, Malmberget and Luleå. Eight of them work in
Kiruna, and they feel right at home there.
“If there’s anything wrong with the cranes, we want
somebody here straight away. That’s real service, to have
them here with us. Especially, when the closest city,
Luleå, is some 300 miles away,” Gräsvik adds.
As it is today, the closest person from Konecranes
is probably already on-site, but even if they are in the
garage working on the cranes, it is only a ﬁve-minute
“They have their maintenance schedule that they Service is the key to long
go through regularly, but should there be an acute relationship between LKAB
and Konecranes. The ﬁrst
problem, they can call our service technicians any contract was signed in 1987.
time,” says Petäjävaara.
“For showing people around we need guys like
Tommy Nilsson, who knows the mines and the areas
inside out,” says Gräsvik. “It is also a safety issue. We
have a zero tolerance for accidents.”
Tommy Nilsson is the
Branch Manager in Kiruna and
Malmberget, a man with a solid
build and a mobile phone in his
create new jobs
After all, LKAB is a niche player in
its market, with only about a four
percent global market share in iron
ore. Like other niche players, LKAB
has decided to focus on its core
business and become the world’s
best at it.
“The construction of the new
palletizing plant will be ﬁnished in
mid-February next year, and full
production starts in mid-April,”
The total investment, including A mine is
improved logistical solutions and environment intangibles as well.
changes in the mine transportation that needs “Last January, I brought a
system, is valued at 6.4 billion group of salespeople here to see our
Swedish krona (700 million euro) operations, and to show them how
according to Gräsvik. our equipment functions in harsh
The entire process takes 27 FACT SHEET conditions. Furthermore, we get
months, from the board’s decision invaluable feedback from LKAB
to the production. So the project that we can then use in our product
team, with Gräsvik and his 13 JUST ADD development.”
construction managers and 160 PELLETS The times are good for LKAB.
suppliers, have their hands full Pellets are produced by mixing The demand for the pellets is
for quite some time. The new ﬁnely ground iron ore with very high, and, therefore, prices
investments will create about 120 various binders and additives, have gone up as well. This gives
new jobs at LKAB. and then shaping the mixture the company a strong ﬁnancial
into centimeter-sized spheres,
The Kiruna expansion project in position to plan for an even stronger
which are sintered at a
itself is a small community of about temperature of 1 250°C. ﬁnancial future.
1,000 people. When heated, the ore is For example, new main levels
As LKAB has focused more on demagnetized, which releases must be built to continue mining at
its core business, the partnership energy in the form of heat that is depth. In Malmberget, mining will
with suppliers has also deepened. then used in the process. pass the present main level in 2010,
“That past decade has been Blast furnace pellets (BF while in Kiruna, this will occur in
pellets) are delivered mainly
excellent for both of us,” says 2012. But Gräsvik is feeling the itch
to steel mills in Europe and
Petäjävaara. “It was tough in the are used in the coke-based already. He would love to get his
beginning, but today, they see us as blast furnace process. This hands on a new project.
experts in our business.” is the most common method In the summer, the sun never
In the last two years Konecranes for producing hot metal, the sets on LKAB, thanks to the mines’
has delivered ﬁfty industrial cranes ﬁrst stage in the steelmaking locations north of the Arctic Circle,
with lifting capacity from 5 000 but the company’s future looks
to 80 000 tons to LKAB. The bright even during the month-long
partnership gives Konecranes Source: LKAB polar night.
16 KONECRANES MAGAZINE
Movers and shakers
When you ﬂy to Sweden in April and look out the plane
window, you will see a lot of ﬁelds in the south. As you
travel north, they turn into forests, and for about a thousand
kilometers that is all you see. But if you keep on ﬂying
further north, the forest eventually ends and then it’s just
snow. After that, there is more snow and mountains.
In the middle of the whiteness, you’ll ﬁnd Kiruna, the
biggest and northernmost town in Sweden. Measured by
area, that is. Although, according to the Swedish records,
the home of about 24,000 people is not a town, but simply
Kiruna is located 145 kilometers north of the Arctic
Circle, and with that comes the duality of the place: The
month-long polar night takes place from mid-December to
early January when the sun does not rise. Then there is
the midnight sun, which lasts for about a month and half
between May 30 and July 15. The 85-year-old
It is a place that has been built around mining ever since Kiruna church will
also be relocated
Luossavaara-Kiirunavaara AB (LKAB) started in 1890. The town was when the town
founded by Hjalmar Lundbohm, a geologist, who moves.
went on to become the ﬁrst director of LKAB.
Lundbom wanted to do things right, and with the
goal of building a perfect town, he invited the
best Swedish architects to draw up the plans.
The town was built at an elevated site
where the air is warmer than in the valley. The
streets follow the topography – and
like its inhabitants, use nature to
its advantage instead of ﬁghting it.
Furthermore, when the houses were
built, they were solid and state-of-the-
The Jukkasjärvi art for the time. To help the miners with their commuting,
Ice Hotel is a Kiruna built a tram line, the northernmost in the world.
very cool place,
in many ways. Ironically, it is the mining that is now forcing the city to
A century of mining iron ore has created a deformed
zone one kilometer deep underneath the town, forcing it to
gradually move to a new location in the next few decades,
but with 1,800 of the town’s 24,000 inhabitants directly employed by The Ice Hotel
LKAB, the Kirunites understand. They shrug it off, they will move, and also has its own
they will get on with their lives. That is what people up in Kiruna do. reindeer skins on
They adapt. the benches.
Kiruna is Sweden’s northernmost city, and at the same time, Konecranes’ northernmost service operation in the world.
Story by Marjatta Pietilä Illustration by Vesa Lehtimäki
THE ART OF
Successful outsourcing means a long-term partnership which creates
value for both parties. Unsuccessful outsourcing may mean going
back to square one. How is it possible to be better prepared and to
avoid unnecessary and costly mistakes?
The term “outsourcing” became popular around ten
years ago. Originally, the notion was used for buying the
products (usually a component) or services from another
ﬁrm. Today the term is frequently used to denote only
the purchase of goods or services to supplement in-house
“Earlier outsourcing meant a natural division of work.
Today, the main reasons for outsourcing are saving money,
focusing resources on core functions, increasing ﬂexibility
or gaining additional capacity. Sometimes the reason is
simply a trend or following the example of competitors.
Yet, at the end of the day, the ﬁnal objective is always to
improve the company’s competitiveness,” says Anu Puusa
P.hd. (Economics), lecturer at the University of Joensuu,
Concentrating on core business enables focusing both
ﬁnancial and human resources on the main competence
areas which keep up the cash ﬂow. Non-proﬁt functions,
which are important for the functionality of the whole,
can be outsourced to another ﬁrm. In many cases, this
is an advantage to all parties.
The management does not need
to consume time and effort on “Succesful co-operation
low-proﬁt, low-interest and low-
knowledge activities. Because of
demands management and
the management’s weak interest understanding of the function
in such functions, they are usually
poorly developed; the personnel
in the oursourcing company.”
– Anu Puusa, University of Joensuu
are not properly trained and
limited resources are allocated to their function. The
staff feels neglected and second-rate, and their level of
motivation and commitment is low. However, if they are
working with a ﬁrm whose core business centers around
that function, they will get the attention, respect, training
18 KONECRANES MAGAZINE
and career opportunities of the core business proﬁt FACT SHEET
makers. At the same time, the previous owner receives
the expert service of a highly motivated staff along with
improved quality. WHEN OUTSOURCING
Outsourcing also improves the ﬂexibility of a The following questions should be
company. In a business which is highly affected by considered before outsourcing:
seasonal ﬂuctuations, the ﬁxed costs can be levelled out
Is the function of strategic importance?
by using externally purchased services. The company
pays for the services only when they are needed. Who knows the function, its role and its importance for the
Every outsourcing case is unique and has to be
tailored accordingly, but there are some rules of thumb Who is responsible for the whole?
that need to be taken into consideration. Who develops the whole?
Know your own needs Who is responsible for securing the information ﬂow?
Outsourcing is just like any purchasing decision; it Does the supplier have the sufﬁcient resources and risk
demands information, invitations for bids, contract management to guarantee our deliveries?
negotiations and decision making. But prior to this, the Does the supplier have the sufﬁcient capacity to develop its
outsourcing company must deﬁne its own needs and processes and train its personnel?
objectives. It must be crystal clear for the management Does the supplier have the sufﬁcient resources to invest in the
what the core business, the core competences and the latest technology?
resources of the company are. Is the supplier willing to develop in the same direction with us?
“Sometimes they are not the same as those
Are we interesting enough as customers for the supplier to have
mentioned in the vision statements or strategy papers. a high priority?
In order to know which functions can be outsourced,
Do we share views on quality?
a company must identify its strategic functions.
Outsourcing strategic functions may be fatal in the Are the supplier’s organization culture, values and attitudes
long run. But outsourcing support functions, in which towards our joint customer in line with ours?
the management of the company may not have the
necessary expertise, is often a good solution. Before any
contract with an external supplier can be signed, one
must deﬁne the objectives for example, the need for technical competence, a healthy ﬁnancial background,
structural changes, where and how costs will be reduced delivery accuracy, a shared understanding of the quality
and how much can be invested in the external service. ” with the outsourcer, adequate resources and good risk
management systems. The reputation of the company is
Know your partner not a minor factor either. A stainless reputation and good
The choice of the partner is also based on this analysis. company image are a necessary basis for trust between the
But there are other factors as well. The outsourcer companies. But even when “the hardware” is working,
must make sure that the supplier has the required “the software” must also be intact; there must be the
Planned and preventive service
A great number of Konecranes’ customers have outsourced technicians move to work with Konecranes’ Machine
the total responsibility for the maintenance of their cranes Tools Service unit, they join a new business culture
and machine tools. As customers look for greater ﬂexibility, and environment, where service is the core business
need additional resources and aim to concentrate on their activity. In our orientation program the new team
core business, the demand for outsourcing services is members become acquainted with our operations and
growing. reporting systems, learn about their new service role,
“Our promise to the customers who outsource their visit our service depots and take part in our training and
machinery maintenance to us is predictability, increased communication programs. Good orientation is a path to
productivity and minimized downtime. We evaluate the trust, motivation and self-esteem.”
condition, service needs and the remaining life time of the In addition to deﬁning the scope of the service
machinery. The customer knows for many years in advance contract, Kujala pays special attention to the measuring
what the maintenance costs will be and can plan ahead systems of the results and reporting to customers. When
when investment in new machinery becomes necessary. It a company uses the services of a specialized partner, it is
is our job to develop the capacity of our customers’ lifting essential that the customers’ own service technicians also
equipment and to guarantee uninterrupted operations,” says can develop the service function. The development has to
Pekka Kujala, Division Manager, Machine Tool Service. be continuous, and measurable results are the best proof
“When the customer’s own service engineers and of the value that we provide to our customers.
20 KONECRANES MAGAZINE
right chemistry and a feeling of common goals between developing its products or services, and by securing a
the individuals participating in the co-operation. high level of expertise in its staff,” Puusa says.
Compatible values and company cultures as well as
open communication help in this respect. The closer Why does outsourcing sometimes fail?
the interaction, the better the possibilities to succeed. “The most frequently outsourced functions in the
“On the level of strategic companionship, outsourcing Finnish technology industry are services, such as
never means transferring total responsibility to another maintenance, accounting, IT-support or security.
ﬁrm. Outsourcing demands network management skills. Since 2000, two-thirds of the Finnish technology
Even if the responsibilities are deﬁned, successful co- industry companies have outsourced some support
operation still demands management and understanding function, and about one-third have outsourced
of the function in the outsourcing company. Otherwise, production or R&D. International research covering
the outsourcer becomes too dependent on the supplier, this area is still quite limited, but according to our
and co-evolution, which means developing in the same information, the above proportion is also relevant
direction, becomes impossible. There must also be internationally. Naturally, there are some differences
systems for measuring the supplier’s performance. between countries. In the area of production,
“When the supplier takes an active role, it can offshoring is more commonly used than in R&D,
be a valuable asset and an additional resource for the where the services of domestic research institutes
outsourcer. The supplier can create added value by and universities are used more frequently,” says Jyrki
Ali-Yrkkö, Head of Unit at the Research
Institute of the Finnish Economy
“In spite of outsourcing, companies (ETLA). Ali-Yrkkö has just completed
a research paper, “Outsourcing of
must still maintain control.” Manufacturing and R&D Functions
– Jyrki Ali-Yrkkö, the Research Institute – Motives and Results.”
of the Finnish Economy The results of the study showed that the success
of outsourcing production and R&D in the Finnish
technology industry depends, to a great extent, on
how well the task has been deﬁned to the supplier.
Deﬁning technical production tasks is easier than
deﬁning R&D projects, which always includes great
“All the expected cost savings did not
materialize. The project management costs were
often underestimated. In spite of outsourcing,
companies must still maintain control. Continuous
communication and attention are needed. Especially
in the case of R&D, communication between the
partners is of essential importance,” Ali-Yrkkö states.
“Another reason is that in-house functions often
include hidden costs. Work is done without cost
evaluation; its value in money materializes only when
the work is done by an external partner. When trying
to focus on the core business without thorough
analysis and clear goals, companies had difﬁculties.
Whereas companies that had set increased capacity as
their goal, succeeded well.”
Ali-Yrkkö suggests that companies should pay
more attention to the planning of outsourcing;
analyzing and deﬁning the work to be transferred
to the partner as well as their own share of the work
and its cost. Another important area of planning is
the organization itself. The organization may need
restructuring, operations reorganizing and some
changing of practices. If the changes are not powerful
enough within the company, the external changes
lose their meaning. He also warns against outsourcing
functions that are of strategic importance to most
companies, such is IT. At least the IT manager has to
remain in the company, because there has to be an in-
house expert that both knows the company needs and
understands the latest technology.
Story by Juha Europaeus Photos by Arto Wiikari
AFRICA There is a different kind of Africa
in the Port of Mombasa.
This energetic, growing and modern
nexus of commerce indirectly serves 390
million people throughout East Africa.
The Port is enjoying an investment boom,
which is expected to beneﬁt all of East
22 KONECRANES MAGAZINE
from the roof of
the Kenya Port
of vessels from
Asia, Europe and
the Americas are
anchored in the Port of Mombasa. While in the
port, it is hard to believe that the sub-Saharan
share of world trade is less than one percent.
Mombasa has had thousands of years of experience privatize parts of the Port’s operations and increase
in trade and maritime traﬃc. It was a bustling trade the competitiveness of port services. Cargo traﬃc is
port long before Europeans set foot on the eastern coast expected to increase at a steady rate of 5–10% over the
of Africa. next few years.
Geographically, Mombasa is the natural point of The bureaucracy in trade documentation has been
entry, for not only Kenya and Uganda, but also several reduced, while investments in new equipment have
other inland countries outside Kenya’s borders. Large increased the Port’s productivity considerably. Within
a six-year period, container traﬃc
has increased by nearly 90% to
470,000 container tonnes (TEUs).
At the same time, the average pace
of container loading and unloading
“Previously, only a ﬁfth of our
machines were in proper working
order. Now we have fewer machines,
but they’re reliable. The company
is also enjoying higher proﬁts,”
explains Anderson Mtalaki, KPA
The Port of volumes of goods pass through Mombasa on their way director of equipment maintenance.
Mombasa to the markets of Rwanda, Burundi, the Democratic In addition to the procurement of equipment, the
is expected to Republic of Congo, South Sudan, Tanzania and KPA also plans to build a completely new container
increase at a Ethiopia. Measured in terms of import and export terminal within the port zone. There are also plans
steady rate of
5–10% over the volumes, Mombasa’s biggest trading partners are the to expand storage facilities and upgrade the port
next few years. United Arab Emirates, India and Saudi Arabia. information processing system. The KPA has also
reserved space for the free trade area, which would be
Investments underway part of a broader East African (Kenya, Uganda and
In terms of productivity, the Port of Mombasa is Tanzania) investment zone. The free trade area would
currently comparable to major ports in Africa and facilitate the import of cars, apparel and machinery, etc.
Asia, such as Durban and Dubai, respectively. This to East Africa.
was not always the case: the Port has struggled with
storage facilities, outdated equipment, bureaucracy and Stringent requirements
infrastructure. The KPA’s co-operation with
In order to attract new
cargo traﬃc, the Port of “THE COMPANY Konecranes began four years ago.
The KPA operates eight Konecranes
Mombasa has set out to IS ENJOYING forklifts, each with a lifting capacity
enhance its attractiveness and of 10–25 tonnes.
competitiveness. Owned by “Konecranes’ after sales services
the Kenyan state, the Kenya have been outstanding. We have
Ports Authority currently
– Anderson Mtalaki found Konecranes forklifts to be
has a major investment powerful, eﬃcient and economical,”
programme underway. It has allowed for the purchase says Mtalaki.
of new equipment for the container terminal, enhanced The KPA is purchasing new equipment after an
the eﬃciency of the port operating methods. exhaustive bidding period. The port wants to receive
The Kenyan government has promised to a full return on its investments. The machines are in
24 KONECRANES MAGAZINE
The Kenya Ports
Authority operates COASTAL CITY MOMBASA
eight Konecranes’ Africa is widely believed to be the cradle of humanity
forklifts. Each and Mombasa one of the world’s oldest ports.
has a lifting According to poet John Milton, the port of Mombasa
capacity of has existed since 4026 B.C., shortly after the creation
10–25 tonnes. The of the world.
forklift operators Mombasa is located on an island in the Indian
praise the solid Ocean. The new, modern port is located on the south
and confortable side of the city. During colonial times, the old port and
handling, its fortiﬁcations, Fort Jesus, built in 1593, was located
ergonomics on the north side of the city. The old port is still in use,
and unimpeded and the work is still done by hand, with no mechanical
operator view. assistance.
The ﬁrst European conqueror in Kenya was
Portuguese explorer Vasco da Gama, who visited
Mombasa in 1498.
The new port was established in 1896 at the same
time as the Uganda Railway, which ran from Mombasa
to Kampala, Uganda. British colonists wanted to bring
such commodities as palm oil out of the hinterlands for
use in the European cosmetic industry. Kenya’s capital,
Nairobi, and many smaller cities were built over time to
serve the railway.
Today, Mombasa is estimated to have a population
of over 1.5 million. The city has become one of East
Africa’s most popular tourist destinations.
The ﬂawless operation 24 hours a day, and they cannot aﬀord to be
operation of taken out of the rotation for servicing.
highly important. “We have a precise list of requirements that new
All machines equipment must meet.” “When making equipment
frequently. purchases, we look at the provider’s guarantee, the
availability of spare parts for the next 15 years and
whether the forklifts are standardized. Equipment
training is also a key criterion for us.”
Around sixty people work at the KPA port service
department. Both predictive maintenance and repairs
are provided for the machines. The number of hours
a machine has been in operation is checked daily. All
machines are subjected to monthly, semi-annual and
The ﬂawless operation of equipment has accelerated
work and increased job satisfaction.
Forklift operators are especially
fond of the solid and comfortable
handling, excellent ergonomics and
the unimpeded operator view that
Konecranes’ forklifts oﬀer.
When the KPA requested
Konecranes’ bid for forklifts,
directors from the Port of Mombasa
travelled to Markaryd, Sweden to
see the manufacture of forklifts for
A new addition to the product range
Straddle carriers are a new addition lifting solutions and Consens’ explains Director Jyrki Melaanvuo.
to Konecranes’ product offering for expertise in Straddle Carriers. The customer has access to
ports. With state-of-the-art handling ”Straddle Carriers complement our Konecranes’ Straddle Carrier service
characteristics, the Straddle Carrier product range in the vital Ports line-up. expertise and global service network.
is capable of maintaining a shock-free Straddle Carriers are used a great ”Six years ago Konecranes acquired
lift of as much as 60 tons. Straddle deal in Central Europe, but there is the service business of a company
Carriers enhance productivity at also demand in the US and Asia. The called Noell, thus giving Konecranes
ports and terminals, as a single market situation is extremely good,” both Straddle Carrier service expertise
Straddle Carrier can lift two twenty- says Director Jarmo Juntunen. and spare parts services,” explains
foot containers at the same A core group of 12 key German Juntunen.
time. With this new experts was transferred to ”Straddle Carrier components
range, Konecranes’ Konecranes as part of the and control systems are being
customers have deal. gradually moved over to Konecranes
access to an even “These are sales, technologies. We are also looking for
wider product mechanics and new manufacturing concepts, which
selection of port hydraulics experts, will allow us to utilize Konecranes’
equipment. project managers and various units, their expertise,
At the beginning of the purchasing personnel. manufacturing capacity and other
year, Konecranes acquired The principle used in synergies,” says Juntunen.
the product rights for the the manufacture of Straddle Carriers are used to stack
Straddle Carrier from Straddle Carriers is containers and transport them from
the bankruptcy the same as for RTG Ship-to-Shore cranes to the yard, as
estate of cranes. We do the well as the loading and unloading of
German Consens ﬁnal assembly container trucks. Straddle Carriers
Transport in-house are also the most stable in the sector.
Systeme GmbH. and use our Konecranes’ other port equipment are
The project subcontractors Ship-to-Shore cranes, Rail-Mounted
combines for the remainder Gantry cranes, Rubber-Tired Gantry
Konecranes’ of the work,” cranes, Lifttrucks and Reachstackers.
26 KONECRANES MAGAZINE
their own eyes.
“The visit was a wonderful, eye-opening
experience,” says Mtalaki. “I got to see how the forklifts
are built and how well-organized the plant was. I was
surprised at how the forklifts are assembled one-by-
one to meet each customer’s speciﬁcations. I was also
impressed by Konecranes’ business philosophy, which
states that with success comes responsibility.”
Development of trafﬁc connections
Over one-ﬁfth of the goods coming into the Port of
Mombasa are destined for locations outside Kenya’s
borders. Until now, the poor condition of East Africa’s
roads and railways hampered inland trade. These will,
however, be improved in the near future. The Kenyan
government has promised to put a ﬁfth of the state
budget toward business investments, which will increase
the vitality of the Port. In the future, the Port of
Mombasa will have exceptional capabilities to increase
transnational transit traﬃc.
At present, traﬃc to inland countries such as the
Democratic Republic of Congo, Rwanda and Burundi
is minimal. The biggest inland trading partner is
Uganda, 70–80% of whose imports and exports pass
Trade relations between Uganda and Kenya have
a long tradition. Mombasa’s new port was built at the
same time that British colonists
were building the over 2300-
kilometer long Uganda Railway
from Mombasa to Kampala.
The railway was nicknamed the
“Lunatic Express”. Even though
the condition of the railway has
deteriorated, a quarter of all freight
still leaves Mombasa by rail.
Prosperity for Mombasa
The Kenya-Uganda railway was
recently deregulated, which is
expected to revitalize the East Over one-ﬁfth
African economy. There are also plans to build a 2500- of the goods
coming to Port
kilometer railway to the oil ﬁelds of South Sudan. The of Mombasa
cost-estimate for the six-year construction project is are destined for
1.6 billion dollars. The project is being managed by Kenya’s borders.
German Thormahlen Schweisstechnik AG.
Building infrastructure in a developing country like
Kenya is an enormous undertaking. Investments are,
however, necessary for increasing economic activity
and prosperity. Kenya’s development partners and the
World Bank, among others, are committed to provide
hundreds of millions of dollars in funding for the traﬃc
If the investments are realized, this will mean
prosperity for Mombasa and the entire region. Africa
has waited to gain access to the fruits of globalization
for years. Now Mombasa stands at the threshold of a
new era, just as it did a century ago with the completion
of its new port.
Mombasa has one of the best white sandy beaches and coral reefs that Africa
has to offer. Another unique aspect of Mombasa is its rich history. The “Old Town”
is reminiscent of the days when the Portuguese used to rule Mombasa. Being a
colonial country before independence, there are different cultures and languages
in Mombasa. The most common language spoken is Swahili, followed by English.
28 KONECRANES MAGAZINE
A DAY WITH A
On a Saturday
afternoon we knock
on the door of forklift
Matengu. He has just
ﬁnished his usual six-
day work week. We
want to know what a
forklift operator’s life
in Mombasa is like.
lease, come in,” says Matengu shyly, The family of this charismatic worker consists
“P inviting his guests to have a seat on the
sofa. Through the window we can hear
noise, mostly pets and children playing. The
small, dimly lit and modest room has no air conditioning.
The heat is comparable to a Finnish sauna heated halfway
of his wife and ﬁve children: four boys and one girl.
His wife and the younger children live in rural Kituyi,
where Philip meets them about once a month.
The older children live with him at his rented ﬂat in
Mombasa. The eldest son is 24-year-old Joseph, who
to ready. Dust clings stubbornly to sweaty skin. is sitting on the sofa listening to his father’s stories.
But Philip Matengu doesn’t appear to have even broken a Philip says that he is a country boy at heart.
sweat. Matengu is a former runner and, at 53 years of age, He spends his yearly four-week holiday at home in
in remarkably good condition. Kituyi, taking care of his family as well as nine cows,
“My work at the Port of Mombasa starts every day at four goats, two oxen, four dogs, two cats and ten
seven in the morning. I wake up every morning at ﬁve, chickens.
wash up and start walking to work. Sometimes I run. On
busy mornings I take a 10-shilling tuk tuk (three-wheeled Football and beer
motorcycle taxi) to the port gates. Philip’s older brother, Benjamin, also arrives for the
“After work, I take the bus to the port gates and then weekend. We decide to go to a local restaurant for a
walk the rest of the way home. I usually go out to see if my beer. “We can also catch some English Premiership,
friends are playing checkers. Sometimes I go to outdoor which we love to watch on television here in Kenya,”
church concerts.” say the two excitedly.
This forklift operator has made the three-kilometer trip The bartender brings the beers along with towels,
to work twice a day for 30 years. His career as a port worker which are used to wipe sweat off. The towels can also be
began in 1977. The ﬁrst container ship had arrived in port a Philip Matengu
used to shoo ﬂies away. Philip, his son Joseph and brother has two years
couple years prior to that. Benjamin each complain, one after the other, that Kenya’s to go before
“I wasn’t nervous at all. I was excited, because I really FIFA ranking is 128. his retirement.
needed the money,” says Matengu, recalling his ﬁrst day of Matengu wants
But we then get back to the subject of working at the to buy a house
work. port. How has your work changed in the last 30 years? and rent out
The early career years were a time of great change in the “The work used to be harder. The ships were mostly some of the
young man’s life. Philip was starting a family and needed loaded and unloaded by hand.” rooms. This would
steady work. He spent his ﬁrst two years at the port as a bring security
During his ﬁrst years on the job, Philip worked as a for old stage,
temporary worker, until the job was made permanent. Being bearer before becoming a forklift operator. as does the
hired as a full-time employee was a major turning point in After his career, Philip is looking forward to a long and livestock he has
Philip’s life. at home.
satisfying life in the countryside. “Both my parents are still
“I got married and was hired full time, a year after our alive and are over 100 years old. God willing, I’ll also live to
ﬁrst president Jomo Kenyatta died,” recalls Philip. be that old,” grins Philip.
R&D S T O R Y B Y: R U S S E L L S N Y D E R
Calculation Tools make designing a
crane quicker and assure quality.
With these engineering programs,
it is possible to calculate the di-
mensioning more accurately than
KEEPING A COMPETITIVE EDGE
Several calculation programs have been
developed in Konecranes R & D to assist
crane designers in their work by making
component selections, crane structure
designs, plus faster and more reliable
analyses. Thanks to calculation programs,
the most advanced calculation methods
can easily be distributed to beneﬁt all
the designers within Konecranes. These
calculation tools are carefully protected so
that competitors are not able to get the same
“The main crane components, such as
the rope reeving system, hoisting machinery,
the steel structure and driving mechanisms,
are selected and optimized by the software.
That gives us a competitive edge”, says Tero
Aaltonen, Chief Engineer of Research and
Development. “Of course, there are still many
details for the designers to handle, but their
work load is greatly reduced and efﬁciency
maximized because the most difﬁcult
component selections as well as the steel
structure analyses can be made with our own
THE RIGHT PROGRAM
The KC Girder program analyzes and optimizes
the bridge crane’s main girders. The latest
program version has three different crane
structure types and girder sections, including
I-proﬁle, box proﬁle and combine proﬁle.
The loads, load combinations and partial
safety factors are calculated according to
the selected standard: FEM, DIN, CMAA
or EN. The program calculates stresses,
deformations, plate and lateral buckling,
fatigue strength, natural frequencies, wheel
loads as well as support reactions, masses,
buffer force and energy.
The KC Runway is a program for crane
runway calculations. The program can analyze Based on the given input values and component selections, the KC Girder program
creates a FEM-model of the crane steel structure to deﬁne stresses, deformations,
and optimize steel structures of arbitrary plate buckling, fatigue and vibrations.
30 KONECRANES MAGAZINE
hoisting brake, inverter and breaking resistors.
As in the KC drive program, there are over
900 motor variations, 500 different gears and
100 inverters stored in the database.
SUPPORTING THE DESIGNERS
Along with the development of new calculation
tools, R & D provides constant program
updating and program maintenance to keep
these tools current. User support and training
are also important, so the designers can get
the maximum beneﬁt from the calculation
tools. During the training sessions, the
designers learn how to use these programs
and also to understand the physical
phenomena behind component selections.
This helps to design better cranes and will
ultimately beneﬁt the customer.
“You cannot buy these kinds of programs
on the open market. They are tailor-made with
KC Rope program reeving components, such as rope drums, can be added and edited years of experience involved, and they will
with the component editor. The dimensions and the geometry of the reeving component continue to improve. Furthermore, developing
in question can be seen in the 3D-image.
this kind of software guarantees that the
know-how will still be available long after the
experts retire,” concludes Aaltonen.
runway structure models with user-deﬁned used to determine and agree on the service
dimensions. The runway model is deﬁned by conditions of the cranes, and to estimate the
joining structure members, such as runway remaining safe working period of the different
beams, columns, diagonals and supports. components. There are great variations in
According to the selected standard, the usage. For example, a power plant crane
runway is loaded with several combinations lifts a generator only a couple of times per
of crane actions. year, whereas a
deformations, crane is constantly
member and on the move.
plate buckling, The program can For an optimum
analyze and optimize crane design and
reactions are steel structures of the usage must be
calculated based arbitrary runway taken into account.
on the ﬁnite
structure models. The KC Rope
program is used for
The KC the selection and
Class program lifetime estimation
classiﬁes a of wire ropes. It
crane according to how much it will be used calculates ropes and reeving systems. The
and the severity of the loads. The program is rope acceptance criteria are based on several
international standards and norms, and
there are over 150 different rope types in the
database. KC Rope can also be used to study
the static equilibrium position and the rigidity
of the reeving system.
The KC Drive program selects a suitable
driving mechanism for a trolley or crane,
including the motor, gear and inverter. There To calculate the expected lifetime of
wire ropes accurately, the rope reeving
are over 900 motor variations, 500 different system and usage has to be speciﬁed.
gears and 100 inverters in the database of Usage is deﬁned by driving hoisting and
the system. One of the unique properties of lowering movements with the selected
reeving. The program calculates e.g.
the KC Drive is that it can simulate different rope forces, ﬂeet angles and number
phenomenas like load swing during arbitrary of bends on the different parts during
Stresses, deformations and vibrations on driving sequences. these movements. The wire rope
the bridge crane steel structure can be lifetime calculation is based on these
The KC Lift program selects a suitable values.
visualized using a 3D-image.
hoisting mechanism, including the motor, gear,
R&D S T O R Y B Y: R U S S E L L S N Y D E R
and maintained properly, and is subject to
RopeQ: wire breaks and abrasion throughout its
working life. There are many reasons for
An industry benchmark damages to a wire rope, among them are
for service bending, stretching, internal wear, rubbing
against another object, and corrosion, which
Monitoring a wire rope’s condition is especially prevalent in outdoor conditions.
has always been a major challenge Also, sudden shocks due to accidents or
for the crane industry. Soon this mishandling cause severe problems.
will be a thing of the past. RopeQ’s To avoid risks, regular testing of the rope
is needed. During a visual inspection, only
unique in situ inspections use a
the outer strands of a wire are checked. It is
magnetic ﬁeld to detect any dam-
impossible in practice to inspect the inner
ages or problems in the rope. As a core using this standard method. That is why
result, this will prevent accidents, many wire ropes are classiﬁed as safe even
save money and make customers when they should be discarded because of
happy. heavy internal damage.
It has long been known that the crane RopeQ 20-40 for
industry needed a non-destructive testing BETTER TESTING rope diameters from
20 to 40 mm.
procedure that could assess both the inside After a long and thorough period of
and outside condition of wire ropes. Now with development, Konecranes has introduced
the launch of Konecranes RopeQ, customers RopeQ. It provides a state-of-the-art
will know exactly what condition their wire diagnostic assessment of a wire rope’s
ropes are in, and how long they will be condition, detecting any internal or other
able to continue using them safely before non-visible damages. When combined with
replacement is necessary. Konecranes’ visual rope inspection and
Wire rope is the most critical component of preventive maintenance program, RopeQ
a crane, and any external or internal damage greatly improves safety and extends rope RopeQ
may cause high risk of injury or damage to change intervals. Basic
property. The rope must be selected, handled The RopeQ system is based on the
properties of the steel used in the wire rope
and its magnetic behavior. This same
principle has previously been used
successfully in testing mining ropes
and ski lift ropes. Permanent magnets
are used to produce a magnetic ﬂux at
the saturation level in the rope which
is then measured with several sensors.
Any discontinuity in the rope distorts the
signal. Fluctuations are then checked and
interpreted by a highly trained specialist
who looks for any disturbances. The
analysis of the measurements will reveal
what damages there are in the rope,
and how long it will be able to remain in
service before replacement. This accurate
prediction on the life of the rope means
it can be used longer with less crane
downtime, and avoidance of accidents.
RopeQ enables an in situ inspection with no
need to remove the ropes from the cranes.
Measuring sensors, that can ﬁt virtually any
rope, do a full scan detecting any external
or internal damages. After the assessment
of the wire rope, a service report is issued
Installing RopeQ to giving the description of the assessment
a paper mill crane.
32 KONECRANES MAGAZINE
procedures, a condition summary, and together with the main wire rope 13001-3-2, ISO 4308, JIS C 9620, FEM CMAA
improvement recommendations. The manufacturers with the aim of selecting the #70, JB9009 and DIN15020. The modeling
customer may also opt for (1) condition right rope for our products and for various properties of this software are unique in the
monitoring of a wire rope by repeating RopeQ - applications. This has led to the successful industry.
NDT inspections, and (2) wire rope service life development of ropes with superior
and recommended change interval calculation. performance and safety. In this process, the GOING FROM
Diagnostic software enables the detection company has spent a tremendous amount of STRENGTH TO STRENGTH
of a local fault (LF) which is a discontinuity time doing tests with bending machines and “Our RopeQ system has received exceptionally
in a rope, such as a broken or damaged with our own hoists on real loads. good feedback during its many rigorous
wire, a corrosion pit, a groove, or any other Along with this development, Konecranes tests. Konecranes service specialists believe
physical condition that degrades the integrity has introduced KC Rope, a new software this will have tremendous beneﬁts for our
of the rope. It also detects the loss of the designed to help select a rope for a crane customers, who will especially appreciate
metallic cross-sectional area (LMA), a relative application and give an estimate for the the reliability, safety and money saving
measure of the amount of material missing expected rope lifetime with recommended factors,” says Ari Kiviniitty, Chief Technolgy
from a location along the wire rope. The rope change intervals. By enabling free Ofﬁcer. “RopeQ will be an extremely attractive
RopeQ Inspection method complies with modeling of rope reeving geometry, it helps addition to the services we already provide,
standard ASTM-E1571. design new reeving systems or solves existing and developing wire rope technologies is one
problem scenarios. KC Rope has a rope of the ways Konecranes is strengthening its
GETTING THE RIGHT ROPE database of 150 different rope types, and it leading position.”
Konecranes has worked several years complies with international standards CEN/TS
RopeQ 6-24 for Working principle.
rope diameters Permanent
from 6 to 24 mm. magnets induce
a magnetic ﬂux.
Rope faults cause
RopeQ with all the
is delivered in com-
pact carrying bag.
Story and photos by Lasse Lecklin
Different cheeses need to stay in the saltwater for different time periods.
Automated programs keep the production running at all times.
34 KONECRANES MAGAZINE
Just outside Hamburg
Konecranes is making
things run smoothly
in a highly-automated
Meierei Barmstedt, on the outskirts of Hamburg, is not
what one would expect from a dairy. Tank trucks import
milk into the 250-meter-long building, and ready products
come out at the other end - but in-between, only the odor
gives a hint of what is produced here. Everything is clean
and smooth, shining new.
The Barmstedt dairy concentrates on four product
categories: cheese, butter, skimmed milk concentrate and
“The focus is on cheese – such as Edam and Gouda
– and skimmed milk. Our annual production reaches 430
000 tons in total,” explains Herbert Hannemann, Project
Manager for the cheese plant introduced in 2006.
The dairy, inaugurated in 1880, has more than doubled
its production within the last 10 years.
“For the new plant, we wanted to have the best
technology available on the market for industrial cheese
production. Connecting points between suppliers are
critical, and that is the reason we chose Tetra Pak
Processing GmbH for the overall responsibility,” says Bubbling
Hannemann. Maassen (on
“The 5-ton crane, used for moving cheese racks to the the left) from
saltwater, is a key part of the dairy,” says Frank Neuber, Konecranes,
Project Coordinator from Tetra Pak. Herbert
Co-operation brings success Barmstedt
Konecranes was the right crane provider, since it is a Neuber from
specialist in the laser-function positioning system and Tetra Pak
sway control. These are necessary crane features for this next to the
kind of purpose. saltwater
“It is a small crane, but it enables a big system to be in
production. The machine together with the right software
allows an automated continuous production,” states
Niclas Maassen, Project Manager and Sales Coordinator
for Konecranes’ industrial cranes in North Germany.
The Meierei Barmstedt project has also been
a co-operation between Konecranes in Germany
and Finland. The Finnish connection brought
along the link to Antti Lindfors Oy, a company that
provided the software for cheese handling.
Meierei Barmstedt has come a long way from a
traditional local dairy to a hi-tech factory.
Dairymen in the 1880’s probably couldn’t have
believed how easy their work would become one day.
SERVICE LIGHT INDUSTRIAL PROCESS PORT LIFT TRUCKS
LIFTING CRANES CRANES CRANES
Konecranes is a world-leading group of Lifting BusinessesTM offering lifting equipment
and services that improve productivity to a wide variety of industries. The company is
listed on the OMX Helsinki Stock Exchange and in 2006, sales totalled EUR 1,483 million.
With 7,800 employees at over 370 locations in 41 countries, we have the resources,
technology, and determination to deliver on the promise of Lifting BusinessesTM.
‘Konecranes’ and ‘Lifting Businesses’ are trademarks or registered trademarks of Konecranes Plc.
Konecranes Plc, P.O. Box 661, Koneenkatu 8, FI - 05801 Hyvinkää
Tel +358 - (0)20 427 11, Fax +358 - (0)20 427 2099, www.konecranes.com