Commission presents EU strategy for safer ship dismantling The European Commission today presented an EU strategy to make the dismantling of old ships safer for workers and the environment. Every year between 200 and 600 large merchant ships are taken apart for their valuable scrap metal. Many ships taken out of service in Europe end up being dismantled on beaches in South Asia. A lack of environmental protection and safety measures results in high accident rates, health risks and extensive pollution of wide stretches of the coast. The proposed strategy on better ship dismantling includes actions to help implement key elements of an international Convention on safe ship recycling, due to be concluded in May 2009. It also proposes measures to encourage voluntary action by the shipping industry and better enforcement of current EU waste shipment law.European Environment Commissioner Stavros Dimas said: “While there have been improvements in industry practices in recent years, the problem of ship dismantling remains acute. Workers in South Asia are being exploited and their lives put at risk working in deplorable conditions, while coastal areas are being polluted and ecosystems threatened. The best way to resolve the ship dismantling crisis is to work together at EU and international level. As we look forward to a globally binding convention next year, the EU is already working to support the new rules. The strategy presented today should ensure that ships with strong links to the EU are only ever dismantled in safe and environmentally sound facilities."The issue of ship dismantlingThe number of dismantling sites in the European Union has fallen over the last 20 years and there is no longer sufficient capacity to process the large merchant fleets operating under EU flags or owned by companies in the EU.Today ship dismantling takes place largely in South Asia – mainly in India, Bangladesh and Pakistan. The industry provides thousands of jobs, but health and safety conditions are poor. Older ships contain many hazardous materials, including asbestos, polychlorinated biphenyls (PCBs) and large quantities of oil.The problem of ship dismantling is expected to get worse: the dismantling of single-hull oil tankers is predicted to peak in the next few years as they are phased out in favour of safer double-hulled vessels. Around 800 such tankers are expected to be taken out of service.The Commission initiated work to develop an EU-wide strategy on ship dismantling in April 2006. In 2007 it presented a Green Paper[1] setting out a range of possible measures and this was followed by a public consultation process. More recently, the European Parliament adopted a resolution calling on the Commission and Member States to take urgent action on ship dismantling.International rulesThe International Maritime Organisation (IMO) is preparing an international convention on safe ship recycling, which will be globally binding. The Convention aims to provide a comprehensive system of control and enforcement “from cradle to grave” and relies in particular on the survey and certification of ships and the authorisation of ship recycling facilities. Although final negotiations are due to be completed in May 2009, the IMO Convention is not expected to enter into force before 2015. Main elements of the proposed EU strategyThe EU strategy proposes a number of measures to improve ship dismantling conditions as soon as possible, including in the interim period before the entry into force of the IMO Convention. These include:starting preparations for establishing measures on key elements of the convention, such as those on surveys, certification and inventory of hazardous materials on board, as soon as possible after its adoption; encouraging voluntary industry action through measures such as awards for exemplary green recycling; publication of guidance, such as a list of 'clean' ship dismantling facilities; technical assistance and support to developing countries for safety training programmes and basic infrastructure for environmental and health protection; better enforcement of current waste shipment rules such as more checks at European ports; more cooperation and information exchange between EU authorities; and establishing a list of ships that are ready for scrappingThe strategy also proposes that the Commission look at the feasibility of the following:developing a certification and audit scheme for ship recycling facilities worldwide and evaluating how EU ships can be encouraged to use such a scheme; making warships and other government vessels not covered by the Convention, subject to EU rules for clean dismantling; establishing a mandatory international funding system for clean ship dismantling Developing an EU strategy for environmentally sound ship dismantling is one element of the Commission Action Plan for an integrated maritime policy for the European Union.
Seaspan takes delivery of fifth new containership Seaspan Corporation (NYSE: SSW) announced that it accepted delivery of the CSCL Santiago, a 2500 TEU newbuilding. The new containership, which was constructed by Jiangsu Yangzijiang Shipbuilding Co., Ltd., expands Seaspan's current operating fleet to 34 vessels with 34 remaining newbuildings to be delivered over approximately the next three years. The CSCL Santiago was delivered on November 6, 2008. The CSCL Santiago is subject to a time charter with China Shipping Container Lines (Asia) Co., Ltd. for a twelve-year period at a fixed rate. CSCL Asia is a subsidiary of China Shipping Container Lines Co., Ltd., the world's eighth largest liner company in terms of shipping capacity. Under the terms of the fixed-rate time charter, CSCL Asia is responsible for fuel costs and all cargo operating and related expenses. Gerry Wang, Chief Executive Officer of Seaspan, commented, "With the delivery of the CSCL Santiago and the commencement of its twelve-year time charter, we have once again expanded our vessel portfolio and increased the Company's fixed revenue and cash flow streams. Our newbuilding program continues to progress as planned and with each new delivery, we continue to receive stable cash flows from long-term charters with quality liner companies such as CSCL Asia, all of which is consistent with our sustainable business model. We look forward to accepting delivery of our sixth newbuilding vessel later this year which will further expand our fleet, increase our revenue and enhance shareholder value over the long term."
Arkas has achieved a capacity of 29,021 TEU with its 25 vessels Arkas Holding has added two more vessels to its fleet, M/V CLAIRE A and M/V DIANE A, each capable of carrying 1,604 containers. Arkas took delivery of the two vessels in a ceremony held in Wolgast- Germany, bringing its total number of vessels to 25.One of the leading companies in the Turkish marine transportation sector, Arkas has increased the number of its vessels bearing the Turkish flag to 25 with the addition of M/V CLAIRE A and M/V DIANE A to its fleet reaching a total capacity of 29,021 TEU. Built in the Peene Werft Shipyard in the German town of Wolgast, these new vessels bring the number of vessels in the Arkas Marine Fleet which were built in this same shipyard to 14.With the two new vessels it took delivery of, Arkas has increased its contribution of container vessels in the Turkish Marine Fleet to 57 percent. The company will increase the number of vessels in its fleet to 27 with the addition in 2009 of two vessels being built in this same shipyard.Since it was taken over by the Hegeman Group in 1992, Peene Werft Shipyard has built approximately 50 container ships, 14 of which were constructed for Arkas. The ships that Arkas has received from Peene Werft since 2001 have a capacity of between 1,208 and 1,604 TEU.Two more new vessels in 2009Lucien Arkas, Chairman of Arkas Holding, noted how the cooperation that began 10 years ago with Peene Werft Shipyard had over time turned into a friendship. He said, “All of the vessels that we have had constructed have been of superior quality and performed magnificently. We have not had the slightest problem. In July of 2009, we will take delivery of 2 more vessels from this shipyard. I want to express my gratitude to the ship engineers and everyone who took part in the construction of these vessels. Peene-Werft Shipyard built for us the largest vessels for which it had the capacity. I foresaw the course of the markets in 2006 and canceled the vessels that I planned to take delivery of in 2010. Depending on how the crisis plays out, if I see light at the end of the tunnel next June, I might place a further order for container vessels from Turkey.”A growing fleet of vessels that fly the Turkish flagAs with the other 23 vessels in the Arkas fleet, the two latest ships will also carry the Turkish flag. After the vessels make their maiden voyage to Turkey and switch over to the Turkish flag, they will begin service in the Mediterranean and Black Sea.True to the Arkas tradition, the new vessels were named after Arkas family members. M/V DIANE A and M/V CLAIRE A are named after Arkas Holding Chairman, Lucien Arkas’ daughters.
Diana Shipping announces time charter contract Diana Shipping Inc. (NYSE: DSX), a shipping company specializing in the transportation of dry bulk cargoes, announced that it has entered into a time charter contract with Cargill International S.A., Geneva , for one of its Panamax dry bulk carriers, the m/v Erato, at a gross rate of US$15,000 per day for a minimum eleven (11) to a maximum fourteen (14) month period. This employment is anticipated to generate approximately US$5 million of gross revenues for the minimum scheduled period of the charter. The charter is expected to commence during January 2009.The m/v Erato is a 74,444 dwt Panamax dry bulk carrier built in 2004.
NOL Group announces cost reduction initiatives Neptune Orient Lines Limited (NOL), the parent company of container shipping line APL and of APL Logistics, today announced a package of measures to place the company on a more sustainable footing through an expected severe and prolonged downturn in global container shipping.The actions to be taken will bring the organisation into line with the reduced capacity the company will be operating as a result of initiatives announced on 21 October 2008. The capacity reductions will lower the NOL Group’s vessel network costs by about US$200 million in 2009 (This figure includes some fixed vessel and charter hire costs). NOL said it did not see a recovery from the challenging conditions for quite some time and the potential exists for them to persist for the next few years. The company said the market environment has worsened considerably over the past month and that it anticipated further deterioration in trading conditions going forward. It described the outlook for profitability in 2009 as grim. NOL has, therefore, decided on a number of additional actions: A continuing strong focus on productivity measures and reducing operating costs as well as overhead costs. A reduction of the Group’s global workforce of about 1,000 positions with the largest impacts being in North America, where the company's cost base is highest. The relocation of the Group’s Americas’ regional headquarters from Oakland, California to a more cost effective location elsewhere in the United States. A decision on the location and time frame for transition to the new regional headquarters will be announced in December 2008. Additional business adjustments in Europe and across the company’s Asian regions. A staff reduction of about 50 positions is expected at the company's Singapore office. Changes in the way the APL Logistics business is managed to create efficiencies and clearer line of sight of roles and accountabilities. NOL is committed to providing a range of support and assistance services for affected employees.NOL Group President and CEO Mr Ron Widdows said: “The negative conditions we are seeing in the market place are unprecedented in our industry's history. This necessitates these very difficult decisions.”“Last month, we initiated capacity reductions which will significantly reduce our vessel network and operating costs. Now, in view of the deteriorating market conditions, we take these additional steps. This reflects our considered view that what we are seeing goes beyond a normal cyclical downturn,” he said.The bulk of the staff reductions will be in non-customer facing roles, reflecting the Group's ongoing commitment to delivering high-quality services to customers.Mr Widdows said it was anticipated that NOL’s plan would lead to a restructuring charge of approximately US$33 million in NOL’s fourth quarter 2008 financial results, but would deliver positive financial outcomes in future years. Additional charges are anticipated for 2009.“Our aim is to ensure a viable future, to shape the company to handle the turbulence ahead and to be positioned for success when the global economy recovers,” concluded Mr Widdows.
Wartsila strengthens its leading position in environmental solutions Wartsila is to establish a new centralised environmental products know-how unit. Termed Delivery Centre Ecotech (DC Ecotech), the unit will focus on developing and delivering environmental technologies, as well as products for emissions reduction and efficiency improvement. By combining the broad and outstanding know-how within the company, Wartsila will strengthen its global leadership position in offering environmental technologies for power solutions. DC Ecotech will be a global unit within Wartsila and it is to be headed by Mr Juha Kytola, President of Wartsila Finland, and currently also Vice President, Delivery Centre Vaasa, Finland. The new unit will be fully operational from January 2009. In explaining the reasoning behind this initiative, Mr Kytola commented: "Wartsila has many years of experience in delivering emissions reducing equipment for the exhaust stream of its engines, both in land based power plants and ship installations. Common to all these deliveries is the fact that they are tailor made for each specific installation. DC Ecotech will focus on both the further development of these technologies, as well as a portfolio of products that can be produced in volume." DC Ecotech will act as Wartsila's centre for proactively developing environmental technologies. Furthermore, in promoting and providing legislation know-how, the unit will help customers to comply with environmental rules and regulations as they become increasingly stringent. New tighter emission regulationsTighter emissions legislation is impacting both the shipping and power plant sectors. For example, the International Maritime Organization's (IMO) Tier II requirements stipulate a 20% reduction in nitrogen oxide (NOx) emissions from current levels, while the Tier III requirements, which come into force in 2016, ask for an 80% reduction from today's levels in selected areas. Sulphur oxide (SOx) emissions are also to be significantly reduced. Similarly, legislation requirements for power plants with similar emissions components are becoming increasingly stringent. There is also an increasing global focus on lowering CO2 emissions, and discussions regarding limitations in this area have already started.In tackling these environmental challenges, Wartsila's DC Ecotech unit will continue and expand the company's ongoing new product research. This includes work on the development of a new selective catalytic reactor (SCR) unit system for gas engines as well as the validation and design optimisation of the recently launched NOR (Nitrogen Oxides Reducers) SCR unit. Developmental work also continues on a combined marine scrubber and exhaust gas module, a waste heat recovery concept and carbon dioxide capture and storage technology.
Keppel secures four contracts worth S$340 million Keppel Offshore & Marine has secured SGD 340 million dollars worth of contracts through its subsidiaries for the conversion of a floating storage and offloading vessel (FSO), the construction of an internal turret, the refurbishment and outfitting of a semi-submersible multi-service vessel as well as the fabrication, installation and integration of topside process modules for a Floating Production Storage and Offloading vessel (FPSO). The first contract is for the conversion of a FSO by Keppel Shipyard for M3nergy JDA Sdn Bhd. The scope of work includes the repair, life extension and conversion of a Panamax Tanker built in 1989, into a FSO which involves the fabrication and installation of an external turret mooring system, cargo offloading station, metering skid and helideck as well as the upgrading of accommodation, fire fighting system and communication systems. When completed in third Quarter of 2009, the FSO will be able to store 546,000 barrels of oil with a maximum stabilised condensate production of 20,000 barrels per day. It will operate in the Joint Development Area (JDA) off the east coast of Peninsular Malaysia for Carigali-PTTEPI’s Block B-17 field development project. The second contract by Keppel Shipyard is for the construction of an internal turret for SBM Offshore Inc, which will be supplied to their end client BP Norge AS, for its Skarv FPSO unit. When completed, the internal turret will be the largest in the world in terms of its rated mooring loads. The Skarv FPSO unit will serve the Skarv Development offshore Norway. Mr Nelson Yeo, Executive Director of Keppel Shipyard said, “These new contracts demonstrate the confidence our customers have in us. We continue to execute our projects successfully and to the owner’s satisfaction.” The third contract is by Keppel Verolme BV (Keppel Verolme) for the refurbishment and outfitting works on a semi-submersible multi-service vessel for Prosafe Rigs Pte Limited, a wholly owned subsidiary of Prosafe SE. Scheduled to arrive in the fourth quarter of 2008, the vessel, MSV Regalia, will undergo a refurbishment programme which includes part renewal of the accommodation, entertainment, catering, office and exercise facilities. She will also have her main engines renewed, her thrusters and dynamic positioning system refurbished, and her hull blasted and painted. Harold Linssen, Managing Director of Keppel Verolme, said, “We are delighted Prosafe has chosen us for this project and we look forward to being their provider of choice in the region.” The vessel is scheduled to be completed in the second quarter of 2009. The fourth contract, for the fabrication, installation and integration of topside process modules for the FPSO P-57, has been secured by Keppel FELS Brasil from SBM Offshore. The workscope includes fabrication and erection of Topsides Modules, piping, electrical equipment, instruments as well as pre-commissioning and assistance to commissioning. The modules are expected to be delivered in end 2009 with the commissioning and integration in the third quarter of 2010. The upgrading and conversion of the FPSO P-57 is currently being undertaken by Keppel Shipyard for SBM Offshore and is expected to leave Keppel Shipyard in the fourth quarter of 2009 for Brazil. Keppel Shipyard, Keppel Verolme and Keppel FELS Brasil are wholly owned subsidiaries of Keppel Corporation, through Keppel O&M, a leader in offshore rigs, ship repair and conversion and specialised shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner in solutions for the offshore and marine industry. The contracts are not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation for the financial year ending 31 December 2008.
WWL to provide a weekly North America - Oceania service Wallenius Wilhelmsen Logistics (WWL) is to increase its ocean service from the United States to Oceania from three to four sailings per month from November 2008.In March 2009, the four monthly calls between the Americas and Oceania will be scheduled as a regular weekly service, further enhancing access into and out of Australia and other key global markets.The increase in service to Oceania is in response to the needs of manufacturers and shippers of new and used heavy equipment and vehicle makers who depend on frequent and flexible transport solutions.Out of Europe, Wallenius Wilhelmsen Logistics service levels to Oceania will be maintained at their current six sailings a month and the company will continue to offer two to three sailings a month from Europe to South Africa.Christen Schreuder, Global Head of Commercial, Wallenius Wilhelmsen Logistics, said: "In the current economic climate our global customers need to be able to react quickly, flexibly and effectively to changing market conditions in different parts of the world. WWL is supporting its customers with these challenges through respective product enhancements."The new schedule to Oceania will give our Region Americas customers and prospective shippers of vehicles, high and heavy equipment and static cargoes additional tonnage and a better frequency of service to Oceania," he concluded.WWL and its owners have been in the Oceania trades for over 110 years. Last year, the company opened a state-of-the-art technical services facility in Port Kembla, Australia for import and export processing of construction equipment, heavy machinery and vehicles.The new Americas-Oceania schedule in summaryAmerican- Oceania service via Panama CanalFrequency - From November 08 - four sailings a month. From March 2009 - regular weekly sailings;Port rotation - Baltimore (USA), Savannah (USA), Manzanillo (Panama), Auckland (New Zealand), Brisbane (Australia), Port Kembla (Australia), Melbourne (Australia) , Fremantle (Australia). There is also one sailing a month to the ports of Papeete (Tahiti) and Noumea (New Caledonia). The vessels servicingthese two ports will call at both prior to her Auckland call.
Paragon Shipping posts growth in revenues Paragon Shipping Inc. (Nasdaq: PRGN), a shipping transportation company specializing in drybulk cargoes, announced its results for three and nine months ended September 30, 2008.Commenting on the results, Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, “Once again we are pleased to announce a profitable quarter of solid financial and operational performance. The growth in revenues and earnings that we achieved over the same quarter last year demonstrates our successful execution against our operating strategy. The main drivers behind our success have been the growth of our fleet and balanced chartering strategy, combined with a focus on tight cost controls across the board.” Mr. Bodouroglou continued, “The global credit crisis has clearly had a profound effect on the drybulk market in recent weeks and trade finance, which underpins 90% of international trade, has slowed significantly. That said, we believe that infrastructure projects underway in China and other developing markets will continue to support strong underlying demand fundamentals for drybulk commodities. As a result, we believe the current situation will not continue for a long term.”
Steel cutting for new ship types Following its successful delivery of LPG carriers, Hyundai Mipo Dockyard (HMD) has begun building two new types of ships: open hatch general cargo carriers (OHGCC) and pure car/truck carriers (PCTC). HMD held a steel cutting ceremony for Hull No. 8001 on October 7th. This is the first of four 49,000-dwt OHGCCs for Grieg shipping of Norway.These new vessels can load diverse types of cargo and are equipped with two gantry cranes that can load and unload cargo in small harbors without external cargo handling gear. A steel cutting ceremony was held for Hull No. 8032, a PCTC for Dutch shipowner, Vroon on Oct. 17th. The PCTC has 10,900-dwt capacity and can carry 3,500 cars. A steel cutting ceremony for Hull No. 8032 was held on October 17th.
BW Gas announces 3Q results BW Gas recorded a third quarter operating profit before depreciation and disposals of USD 56.9 million, compared to USD 74.4 million in the third quarter of 2007. Operating profit was USD 34.9 million in the third quarter of 2008, compared to USD 58.1 million in the same period of 2007. Gain on sale of vessels amounted to USD 5.0 million, compared to USD 10.9 million in the third quarter of 2007. The third quarter of 2008 showed increasing freight rates for the VLGCs, fairly stable freight rates for the LGCs and decreasing freight rates for the MGCs, compared to the same period in 2007. Elevated bunker prices continued to have an adverse effect on TC earnings, particularly for the VLGCs. The operating profit in the LPG segment amounted to USD 24.4 million in the third quarter of 2008, compared to USD 36.9 million in the third quarter of 2007. The average number of LPG vessels owned and chartered-in decreased from 48.1 to 44.6. The operating profit in the LNG segment amounted to USD 24.2 million in the third quarter of 2008, compared to USD 24.4 million in the third quarter of 2007. The average number of LNG vessels decreased from 6.5 to 5.5 as one small LNG vessel was sold in February 2008. Operating expenses increased by USD 9.1 million from USD 52.0 million in the third quarter of 2007 to USD 61.1 million in the third quarter of 2008, mainly due to a one-off charge of USD 8.3 million related the right-sizing effected in the shore based organization in this quarter, higher manning expenses and to the effects of the weakening of USD against NOK related to the NOK denominated share of operating expenses. The accounts show net financial income of USD 37.6 million in the third quarter of 2008 (USD - 34.2 million in 2007), of which interest expenses amounted to USD 22.2 million (USD 21.8 million in 2007). Net foreign exchange gain amounted to USD 78.2 million (USD -1.8 million in 2007), of which USD 68.6 million is an unrealised foreign exchange gain related to the NOK denominated tax liability. Other financial items amounted to USD - 21.6 million in the third quarter of 2008 (USD - 16.5 million in 2007), and consist mainly of changes in marked to market value of interest rate swaps. Profit before tax amounted to USD 72.5 million in the third quarter of 2008, compared to USD 23.9 million in the third quarter of 2007. Net profit was USD 111.6 million (USD 0.9 per share) in the third quarter of 2008, compared to a net profit of USD 17.0 million in the third quarter of 2007 (USD 0.1 per share). Income tax gain amounted to USD 39.1 million in the third quarter of 2008, compared to a tax expense of USD 6.9 million in the third quarter of 2007, and is mainly related to calculated changes in deferred tax in ordinary taxed companies as a result of a reversal of unrealised foreign exchange gains on internal loans.
Agreement with Korea Western Power Co, Ltd Kawasaki Kisen Kaisha, Ltd., Tokyo (hereinafter called "K" Line) announced that an agreement was reached with Korea Western Power Co., Ltd., (hereinafter called KOWEPO), a Seoul-based power generation company, for a 10-year consecutive voyage charter (CVC) of a Cape-size bulk-carrier.The outline of the charter agreement is as per below:Agreement: Consecutive voyage charter of a Cape-size bulk-carrier for 10 years commencing from the first quarter of 2009Services: Seaborne transportation of bituminous coal for electric power generation, from Australia, South Africa, Indonesia and Canada to South KoreaVessel: A Cape-size bulk-carrierKOWEPO is one of six South Korean electric power generation companies owned by Korean Electric Power Corporation (KEPCO), with current coal generation capacity of 4,000MW (mega watts) besides oil, LNG and hydropower generation, and imports approximately 12 million metric tonnes of bituminous coal per annum.This agreement is the third CVC with KOWEPO with whom “K” Line has already concluded a 10-year CVC starting from mid-2007 with a Panamax bulk-carrier in May 2007, and another 10-year CVC starting from second half 2011 with a Cape-size bulk-carrier in January 2008.As the Capesize commencing in the second half 2011 enters the service, “K”Line will be transporting approximately four million metric tonnes of bituminous coal per annum for KOWEPO’s power generation needs.
CKYH to rationalize services CKYH Alliance has announced its plans for the rationalization of its services in order to respond to growing uncertainty in the world's economy. CKYH has already suspended the AWE (All Water East Coast) Central Loop from early October 2008, and reduced the total capacity in the CKYH AWE trade by around 18.5%. CKYH also suspended their EMX (East Med Express) service in the Asia-East Mediterranean trade from the middle of October 2008. CKYH is now conducting an extensive study to further restructure the Asia-East Mediterranean services, including the ADX (Aegean Sea Direct Express) service. In addition, CKYH will be making further service changes as part of their rationalization plans. Firstly, the current capacity deployed in the TAS -1 (North Trans Atlantic) service connecting the U.S. and Europe, will be reduced by approximately 18%, which will be effective from the middle of November 2008. Existing calling ports and schedule will remain unchanged, but the size of the vessels deployed will be modified. Secondly, the capacity in the PSW (Pacific South West) trade will be decreased. The current MAP (Mediterranean – Asia – America Pendulum) service connecting Mediterranean, Asia and the U.S. is to be terminated effective from early 2009. This is around 13 ~ 15% of the total capacity deployed in the PSW trade by the CKYH Alliance. However, CKYH will utilize current services, such as SEA (South China Express) as substitution for MAP service. Thirdly, the European service CNX will be suspended from the end of January 2009, which is being operated with 8 Panamax vessels operated by Hanjin Shipping. With CNX suspension CKYHбпs weekly capacity to North Europe shall be reduced by around 9 %.
High level support for shipping symposium Over 200 delegates, including ship-owners and operators, are expected to attend the International Symposium on Safety and Protection of the Marine Environment in the Straits of Malacca and Singapore in Kuala Lumpur, Malaysia, on 24 November. The symposium is being organised by The Nippon Foundation and the Round Table of international shipping associations – BIMCO, ICS (International Chamber of Shipping), INTERCARGO, and INTERTANKO – the first time that the shipping industry has come together in this way as direct users of the Straits. The governments of Indonesia, Malaysia and Singapore – the littoral states – have welcomed this initiative, as has the International Maritime Organisation (IMO). The main objective of the symposium will be to discuss current positive developments in support of safety of navigation and protection of the marine environment in the Straits, such as the Co-operative Mechanism established by the littoral states last year, and the Aids to Navigation Fund, a voluntary fund set up in April to protect the future of the Straits. Mr Yohei Sasakawa, Chairman of The Nippon Foundation, which campaigns for global maritime safety, comments that “the symposium is being held in recognition of the importance of the Straits in terms of sustainable utilisation of the seas and sustainable development of the world economy. Future success depends on all stakeholders working together in a spirit of mutual co-operation and corporate social responsibility.“This is a notable ‘first’ for the shipping industry and a significant step forward for the security of the Straits”.The Nippon Foundation has already contributed to the Aids to Navigation Fund, as have MENAS, United Arab Emirates and the Korean Government. Mr Sasakawa will be making a keynote address during the opening session of the symposium. Welcome remarks will be made by Mr Ong Tee Keat, Malaysia’s Minister of Transport, on behalf of the littoral states, and Mr Spyros Polemis, Chairman of ICS, for the organisers. Speakers will include experts drawn from the littoral states, governments, industry and academia. The Straits of Malacca and Singapore rank as one of the busiest in the world, with transiting ships carrying around one third of the world’s oil supplies and half of world trade.
Horizon Lines introduces ReeferPlus®GPS Horizon Lines, Inc. announced the immediate availability of the ReeferPlus®GPS container trackingand shipment monitoring solution for refrigerated ocean containers moving between the continentalU.S. and Puerto Rico. This innovative solution is designed to improve the visibility and security of high-value perishable cargo requiring cold chain logistics; a term used to describe the maintenance of product temperaturethrough the entire transport chain from packing to delivery.Key capabilities of ReeferPlus®GPS include GPS-enabled real-time container tracking; in-box sensors reporting temperature, atmosphere and security updates via the web; and remote monitoring and adjusting of reefer conditions with one computer click. The ReeferPlus®GPS solution uses Impeva Labs' Global Sentinel Unit, which links multiple two-way communication channels, real-time wireless sensors and a direct two-way interface to the refrigerated container's controller.With continuous real-time supply chain visibility and remote configuration, Horizon Lines' ReeferPlus®GPS customers can track, trace, monitor and take corrective action from their offices anywhere in the world."ReeferPlus®GPS is a major advance in cold chain logistics," said Jacob Wegrzyn, Senior Vice President and General Manager, Puerto Rico Division for Horizon Lines, LLC. "We have been developing and testing this solution for two years in the Puerto Rico tradelane to offer high-value perishables shippers the visibility andcontrol they need for maximum quality control and security.""We are very pleased that our collaboration with Horizon has resulted in the launch of ReeferPlus®GPS," said Tony Moroyan, CEO of Impeva Labs. "Using the latest technologies, ReeferPlus®GPS is the most capable and advanced solution for global tracking, cargo monitoring and container security. This comprehensiveand flexible system offers reefer users outstanding value in confirming cargo integrity across the entire logistics supply chain. This puts Horizon Lines in a clear leadership position."
French Republic becomes strategic owners STX Europe and the French Republic have agreed that the French state becomes a 33.34 percent shareholder in STX France and its shipyards in Saint-Nazaire and Lorient. The combined ownership of STX and the French Republic will expand the strategic opportunities for one of the few sophisticated large capacity shipyards in Europe. STX Europe is today one of the world's leading builders of cruise ships and ferries, with a market share of 35 - 40 percent. The company builds all of the world's largest and most advanced cruise ships at its yards in France and Finland. The French yards have also experience with navy vessels. Other shipyards in STX Europe are market leaders for specialised offshore vessels. The new agreement between STX Europe and the French Republic is a realization of the memorandum of understanding announced by the two parties at 12 June this year. The French Republic will acquire the 33.34 percent interest in STX France via an equity investment of in total EUR 110 million which is expected to be made on 7 November 2008. The French state's initial payment will be supplemented, based on STX France's performance over the period 2009-2011, by an earn out mechanism whereby the French state will make a direct payment of up to 83,3 million to STX Europe. If the parties decide to increase the capitalization of STX France, this amount can be reinvested in STX France and supplemented by the French state, so that STX France will receive a total amount of up to Euros 125 million. The total equity injection would then be EUR 235 million, with an implied value of STX France of EUR 470 million. "STX France is one of very few shipbuilders with experience, technology and competence to deliver large and advanced ships, tailor made for specific purposes. Through the new agreement, this foundation is further strengthened by combining STX and the French state as solid owners with an industrial perspective", says Torstein Dale Sjotveit, president and CEO of STX Europe. Based on the new ownership model, STX France aims to expand the business within today's primary market for both cruise ships and ferries. The yards will also explore opportunities in other segments where STX Europe already has solid experience and skills, for example for ships to the navy or for very large and advanced offshore vessels. Facts regarding the transaction: Today, STX Europe ASA ("STX Europe") controls 75 of the shares in the two French yards through STX France Cruise SA ("STX France"). In the transaction, STX Europe and the French Republic have agreed that the French Republic becomes a shareholder in STX France Cruise SA ("STX France"). STX Europe will continue to be the controlling shareholder of STX France with just above 50 percent, while the French Republic will own approximately 33.34 percent. Alstom Holdings SA ("Alstom"), today a 25 percent shareholder of STX France, will own the remaining shares, approximately 16 percent. According to the agreement, the French Republic shall be represented to the Board of Directors of STX France by at least two members. STX and the French Republic have furthermore agreed a Shareholders Agreement for STX France which gives the French Republic significant minority protection, as well providing procedures and restrictions on the sale by a party of its shares in STX France. STX' business within the building of cruise ships and ferries is primarily based on the shipyards in France and Finland. This strategy will continue with the new agreement. The agreement is depending on approval of STX Europe's Board of Directors, final approval by the French government, and approval by certain business partners of STX France.
Mobile Container Terminal official opening Today, the Mobile Container Terminal LLC (MCT), a joint venture between APM Terminals, Terminal Link, a division of CMA CGM, and the Alabama State Port Authority marks the official opening of its new, state-of-the-art Gulf Coast gateway to global trade options. MCT will provide terminal customers with access to global networks covering all possible trade routes to and from the Port of Mobile.At the intersection of five Class 1 Railroads, immediate access to Interstates 10 and 65, and located 30 miles from open ocean, MCT offers an enhanced option in the US Gulf for reaching Midwest markets, as well as Alabama and neighboring states. MCT, operated and managed by APM Terminals, has a start up capacity of more than 350,000 twenty-foot equivalent units (TEU) and will be developed in phases at a full build out capacity of 800,000 TEU annually.“This world-class facility is poised to meet current and future shipping demand in the US Gulf Coast and is a testament to the combined strength of APM Terminals, Terminal Link and the Alabama State Port Authority,” said Eric Sisco, President of APM Terminals Americas. “It is a win for the partners, the city, the state, the GulfCoast region and the industry as a whole.”"We are excited about the opening of the state-of-the art Mobile Container Terminal as it provides a cost effective alternative for our customers to reach new market opportunities through the Gulf Coast gateway," commented Frank J. Baragona, President of CMA CGM (America) LLC. “The experience of our partners, AlabamaState Port Authority, APM Terminals, and CMA CGM's operating subsidiary, Terminal Link, will deliver a world class-operation to support the continued growth and expansion in this region.”The overall project includes a separate intermodal rail transfer facility and modern distribution complex and represents a total investment of approximately $300 million. Currently, MCT employs over 300 and is poised to create over 1,300 jobs at final build out. During this time, MCT will generate $2.6 million in annual taxrevenue for the area.
EXMAR forms Alliance EXMAR announced the formation of an alliance to advance its efforts in the development of floating liquefaction solutions. EXMAR has specifically formalised a relationship with its long-time LNG partner, Excelerate, and with Black & Veatch, a proven provider of natural gas processing and liquefaction technology.“The alliance of a proven liquefaction technology provider, an experienced LNG importer and marketerand EXMAR’s proven track record of pursuing technologically challenging projects in the LNG business isin my view a unique selling proposition to field owners.This partnership forms a solid basis for the successful development of the first floating liquefaction,storage and offloading solution in the world” said Nicolas Saverys, Chief Executive Officer of EXMAR NV.“We are pleased to align our unique technology platform with the strengths of our partners, combiningour successful relationship with Exmar with the design expertise and capabilities brought by Black &Veatch,” said Rob Bryngelson, President and Chief Executive Officer of Excelerate Energy. “Floatingliquefaction, Storage and Offloading (FLSO) is another example of Excelerate’s innovative leadership inoffshore LNG and along the LNG value chain.”The FLSO combines the liquefaction process, storage tanks, loading systems, and other LNG-relatedinfrastructure into a single floating unit.The alliance has the expertise to develop a cost-effective source-to-market solution that provides thesame reliability, efficiency and flexibility that Excelerate and EXMAR have pioneered in floatingregasification and LNG ship-to-ship transfer.The alliance is currently advancing its design efforts and working to create a solution that capitalizes onthe expertise gained from industry-leading efforts of the combined team in floating regasification,shipping, liquefaction, gas processing, and downstream marketing.“By developing both regasification vessels and complementary terminals to service them, ExcelerateEnergy is in a unique position to succeed in combining floating liquefaction with its existing globaldownstream network, providing a broad-based solution for developing gas markets,” added Bryngelson.
Nets gain of USD 32 million on sale Odfjell has sold MT Bow Sky with a net gain of USD 32 million. The sale of the ship is to strengthen the equity following the Norwegian retroactive tax imposed last year.- Odfjell has been working on ways of strengthening the equity since the damaging Norwegian retroactive tax imposed last year. This process has been hindered by the impact of the financial crises. Despite the difficult financial markets, Odfjell announced the sale of MT Bow Sky(40,005dwt/built 2005) with an eleven year charter back, says Terje Storeng, President/CEO of Odfjell SE.The transaction is entered into with a subsidiary of nabCapital, the institutional banking and capital markets division of National Australia Bank Limited. The ship will be delivered to its new owner in November. The ship will continue in the Odfjell Tankers Pool and will continue to be managed by Odfjell.
New icebreaking oil tanker for Russian Arctic The 70,000 ton ice-protected tanker “Mikhail Ulyanov” will be put on the water in Sankt Petersburg next week. The vessel is one of Russia’s new generation Arctic tankers.The 260 meter long vessel has been built by the Admiralty Yard in Sankt Petersburg on an order from shipping major Sovkomflot. The ship is built for shipping of oil from the Prirazlomnoe field in the Pechora Sea to terminal facilities outside Murmansk, Murmanchanin.ru reports with reference to Portnews.ru. Production start-up at Prirazlomnoe has undergone several postponments. It is now expected that the Gazprom-operated project will be in production in the course of 2011. The field located in the ice-covered Pechora Sea will be Russia’s first offshore oil field in production in the High North.The ship is capable of breaking through 1,2 meter thick ice with a three knot speed. The ship is designed by the Admiralty Yard together with Finnish partners.A second tanker of the type is currently under construction in the yard.Sovkomflot is Russia’s biggest shipping company with its 119 vessels and joint freight capacity of 9,16 million tons.
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