Konecranes to Build Ports Cranes in the U.S. to Loosen China’s Monopoly

 

Finnish-based port equipment manufacturer Konecranes is joining the White House-led efforts to develop alternative manufacturers for the massive ship-to-shore (STS) port cranes and other equipment to China’s ZMPC. Konecranes, which reports it has been supplying STS cranes since 1969, is establishing a network of partners to build a full range of port cranes in the United States.

The focus on port cranes emerged more than a year ago with allegations that China was spying on U.S. ports and could somehow control cranes built by ZMPC. U.S. port trade groups dismissed the claims while China said it was another example of paranoia by the U.S., but the story of “spy cranes” continued to grow.

President Joe Biden in February 2024 launched a program for a new level of U.S. port cybersecurity with the Coast Guard and others issuing a new mandate for ports to enhance security including inspecting their cranes. Later this week, the U.S. is also due to launch a 25 percent tariff on the import of Chinese-made port cranes as part of a sweeping initiative launched by Biden targeting a range of Chinese high-tech sectors. The Chinese have compared the cranes to the hysteria over TikTok while ports complained without alternative manufacturers the tariffs and security rules created undue burdens that would hurt port expansion and modernization.

“The Biden-Harris Administration is committed to supporting the entire American shipbuilding supply chain and enhancing the security of the global maritime environment,” the White House said in a briefing on Monday. Among the initiatives, they highlighted Konecranes' launch of a U.S.-based network to supply cranes.

Konecranes reports it is establishing a network of partners including steel structure providers and subcontractors to build port cranes. On its website, the company highlights it has delivered over 300 ship-to-shore cranes since 1969 and says they are known for reliability and high performance. They are built incorporating Konecranes´ purpose-designed and purpose-built electric motors, gears, and control system, with the company promoting they provide the fastest possible containership turnaround time.

The company says it can supply a full range of domestic manufacturing-compliant port cranes, including the monster STS units. Konecrane highlights it has three crane manufacturing facilities in the U.S. with approximately 2,200 employees. They expect to grow the network for cranes in states including Ohio, Virginia, and Wisconsin, with the White House highlighting each crane will require 1,500 tons of U.S.-made steel.

The company says it will take several years to produce and deliver cranes, but it has already received indications of interest from several customers. The American Association of Port Authorities said in July that it was aware of ports planning to buy at least 61 STS cranes in the coming years.

The White House also reported in February an agreement with PACECO Corp., a U.S.-based subsidiary of Japan’s Mitsui E&S Co., which they reported was planning to relaunch a U.S. manufacturing capability for cranes. They emphasized that the company was a pioneer in 1958 with the first dedicated ship-to-shore container crane but ended U.S.-based crane manufacturing in the late 1980s. PACECO is reported to be looking for partners and a site but plans on manufacturing cranes in the U.S. for the first time in 30 years.

China’s ZMPC is said to currently have an 80 percent market share worldwide in the crane business. The cranes are built and shipped assembled to port on large, heavy lift vessels.