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Armed teams to guard merchant ships entering Singapore port
SINGAPORE - Singapore is set to deploy armed security teams onboard selected merchant vessels entering and leaving its port, to guard against acts of maritime terrorism. The Republic of Singapore Navy has formed Accompanying Sea Security Teams which will be deployed in the country’s waters from next month, the Straits Times reported. Teams of up to eight uniformed security teams will board targeted vessels and escort them in Singapore waters. The team will include personnel trained as a seaman, an engineering specialist and a radio operator who could take control of the ship if necessary. The newspaper reported that the ship’s previous ports of call, its cargo and other data would be looked at for hints of threats. An industry source suggested that non-compliance with the ISPS Code might figure in the selection process. The security teams will carry weapons such as pistols, but they will not have the power of arrest, which will lie with accompanying police coastguard officers. Singapore shied away from the suggestion that the new force were sea marshals of the type already deployed by the Philippines on domestic ferries. The commander of the Navy's Coastal Command, Colonel Chng Teow Hiang, said: “We don’t call them sea marshals, which is more aggressive. “This is a team giving you added security while transiting, not going on board to search.” The Naval Coastal Command already conducts joint patrols with Indonesia in the Singapore Strait. Singapore has taken the threat of maritime terror extremely seriously and repeatedly warned of the possibility that terrorists could hijack an LNG carrier or crude oil tanker and use it as floating bomb against the small island state. © Informa Asia Publishing Ltd.
Australia needs port investment
AUSTRALIA'S finance minister Peter Costello has blamed under-investment in ports for constraining the country's commodity exports. The Australian Financial Review said today that Costello was focusing on the problems faced by private port operators as a major cause for the failure to increase exports and that the minister had pledged to investigate the reasons for the constraints. "It is quite clear to me that there has been under-investment in some ports and it is very important that we get to the bottom of the reasons for that and improve capacity," the minister said. The Reserve Bank of Australia observed yesterday that although transport infrastructure capacity is likely to constrain commodity supply, the general outlook for Australian commodity exports in volume terms remained healthy. New resource capacity coming on stream between mid-2004 and 2007 is poised to boost overall production by 9% a year. © Lloyd's Register - Fairplay Ltd.
Brussels pulls out of IMO meeting on oil spill compensation by Justin Stares
The European Commission has pulled out of a key maritime meeting next week as part of its campaign to represent all EU member states within the International Maritime Organization. The commission has refused to coordinate next Friday’s preparatory meeting for the IMO workshop on oil spill compensation funds because it believes such meetings should take place within the EU framework and not on an intergovernmental basis. Luxembourg, holder of the rotating EU presidency, has stepped in to chair the meeting, which will discuss the position of European countries ahead of the IMO debate on reform of the Civil Liability Convention and International Oil Pollution Compensation funds. The funds are designed to compensate victims of oil spills such as the Erika and the Prestige. "This is the first time the Commission has refused to call up the experts," said a source close to the European Council of Ministers. "Not only have they refused to coordinate the meeting but their presence at the meeting is now in doubt." "I can confirm that this it was has happened and we are not very happy about it," said a source with the Luxembourg presidency. © 2005 T&F Informa UK Limited.
Bush budget cuts maritime spending
DEFENCE and security interests fared well in the 2006 budget released by the White House in Washington yesterday, although some maritime programmes were cut. The Department of Homeland Security was allocated $41.1Bn, an increase of 7% and the Coast Guard would receive $6.9Bn, an 11% increase over the comparable 2005 level. The Maritime Administration’s budget would be cut by 3%, including elimination of funding for the Title XI loan guarantee program, while the budget of the Army Corps of Engineers for operation and maintenance would be increased by 1.8%. The project to deepen the Columbia River channel in Washington State gets $15M from the budget while the St Lawrence Seaway Development Corp budget remains unchanged and that’s only if user fees are imposed. This is a suggested budget that now faces months of wrangling in Congress with significant modification envisioned before eventual passage. © Lloyd's Register - Fairplay Ltd 2004.
Grange targets Malaysia port for iron ore project
MALAYSIA - Grange Resources Ltd has signed a heads of agreement to secure port facilities and build magnetite pellet facilities at Kemaman in Malaysia, reports Lloyd’s List DCN in Australia . The Western Australian mining firm will undertake a feasibility study on the development of the Southdown magnetite deposit near Albany for the production of iron ore pellets. Under the agreement, Grange will acquire up to 60 ha of land and secure access to port facilities in Kemaman. It intends to ship the magnetite concentrate from Western Australia for treatment at an iron ore pellet plant at Kemaman. The agreement will give Grange the right to install and operate bulk cargo handling facilities for ships up to 150,000 dwt. The Albany mine and the Kemaman pellet facilities have a forecast value of A$400m (US$316m) each, Grange said. Grange executive director Geoff Wedlock said the land acquisition and port access agreement was a significant step towards the development of the iron ore pellet plant. © Informa Asia Publishing Ltd.
High freight rates power MISC to 62% profit rise
MALAYSIA - Improved tanker and liner shipping freight rates have added to Malaysia International Shipping Corporation’s core LNG shipping business to produce a 62% rise in quarterly profits. The national shipping company reported a third quarter before tax profit M$1.bn (US$263m) for the period ending December 31, up 61.8% on the same period a year earlier. MISC said that the improvement was due particularly to higher freight rates for petroleum tankers and container shipping. There were also lower losses from Malaysian Shipyard and Engineering. For the first nine months of the financial year liner shipping, which was for a long time in the red, made a profit of M$233m. Energy-related shipping, which includes the core LNG shipping business, reported a profit of M$2.16bn in the nine-month period. MISC was bullish about the outlook for the coming quarter, backed by stronger freight rates and its long- term LNG shipping contracts. “The prospects of the shipping industry remain positive,” the company said. “Freight rates continue to remain strong.” “MISC’s existing long-term charters and contracts of affreightment in the LNG and petroleum businesses will continue to provide the group with strong and stable earnings.” © Informa Asia Publishing Ltd.
India develops new maritime policy
THE new maritime policy of India includes measures to facilitate private investment, improve service quality and promote competitiveness, according to shipping minister TR Baalu. He said the policy, which will be announced shortly, aims to enhance private investment in India's growing port sector. The ministry is formulating the national maritime development programme with a 10-year perspective. Baalu said efforts to promote private investment in port development has seen some success as 19 projects worth Rs64Bn ($1.4Bn) have already been approved, while 17 projects involving Rs33Bn of private investment were under consideration. On enhancing the cargo handling capacity of the ports, the minister favoured outsourcing of certain activities to the private sector and pointed out that guidelines on this have already been issued. Baalu said his ministry would declare three new waterways and seek to open up more hinterland of the sub-continent for water-borne trade. © Lloyd's Register - Fairplay Ltd.
Indonesia merges state operators
INDONESIA is to merge the state's port operators, shipyards and shipping companies in a bid to increase operational efficiency, boost access to capital markets and enable expansion. State enterprises minister Sugiharto explained that the merger was part of the government's plan for better management of state enterprises. "We expect each of the merged companies will become a leader in their respective sector,” he said. The government will merge shipping companies PT Djakarta Lloyd with Pelayaran Nasional Indonesia (Pelni), Bahtera Adhiguna and Angkutan Sungai Danadan & Penyeberangan. Assets of the merged shipping companies are estimated at Rp8Trn ($888M). State port operators to be merged are Pelabuhan Indonesia (Pelindo) I-IV. The shipyards of Dok & Perkapalan Kodja Bahari will join with Dok & Perkapalan Surabaya and Industri Kapal Indonesia. According to Sugiharto, the merged ports will have assets of about Rp7Trn, while the shipyards are expected to be valued at Rp3Trn. © Lloyd's Register - Fairplay Ltd.
Malaysia rejects help
MALAYSIA - Malaysia does not need foreign help in patrolling the Malacca Strait against piracy, a leading politician said on Friday. Foreign minister Syed Hamid Albar insisted officials were “quite happy” with security in the Straight. “The co-operation between the various countries that share the straits has been very good,” he told reporters. “I don’t think there should be any intervention from outside parties.” A US admiral last year raised the possibility of the US undertaking anti-piracy tasks in the region. © Informa Asia Publishing Ltd.
MISC rejects bulker allegations
MALAYSIA International Shipping Corp has denied allegations that the en-bloc sale of 32 bulk carriers to Greece’s First Financial flouts certain procedures. “The board of directors and management of MISC have strictly adhered to and complied with all regulatory and procedural requirements of the law,” the company stressed yesterday. MISC is a subsidiary of state-owned oil and gas giant Petronas. “The allegations in the said report are not true, baseless and undermines MISC’s reputation,” the company said, referring to a police report quoted in the local media. It is believed that some parties said to be closely linked to the ruling coalition Barisan Nasional are against the $740M sale, which they are trying to block. The handover of the vessels is expected to be completed before 31 March this year. The police report allegedly claims that MISC had not consulted the Foreign Investment Committee of the government’s Economic Planning Unit. The committee is entrusted with the task of regulating the sale and acquisition of Malaysian assets by foreigners. © Lloyd's Register - Fairplay Ltd.
MMM to bolster fleet with small tankers
MALAYSIA - Malaysian Merchant Marine has earmarked M$70m ($18.4m) for expansion of its tanker fleet from a M$99.85m rights issue. The Kuala Lumpur listed shipping firm is looking to buy more small tankers to build on its business in the Philippines and expects to increase its fleet from 13 to 16 vessels by year end. “At least two vessels will be purchased and most likely it will be more by year end. If possible it will be used for our Philippine operation,” said Malaysian Merchant Marine managing director and chief executive, Shahrazi Sha’ari. He was speaking to reporters after a signing ceremony with Affin Merchant Bank for the rights issue. The company is looking for vessels of 4,000 dwt to 5,000 dwt. It sees good opportunities in the Philippines where the government is pushing ahead with exploration. “We feel the timing is right. We have a few projects that we are working on and it should take off in the next few weeks. The purchase of the vessels are for the projects we have in hand right now,” he said. The funds will come from a M$99.85m rights issue, of which M$70m will be used for fleet expansion, M$6m to M$10m to upgrade and refurbish its existing fleet and the remainder to partially settle a bridging loan. The company is making a rights issue of 67.4m new ordinary shares of M$1 each in MMM together with 13.5m free detachable warrants on the basis of 10 rights shares with two warrants for every 20 existing MMM shares held. © Informa Asia Publishing Ltd.
Malaysian Merchant Marine draws up tanker shopping list by Marcus Hand
MALAYSIA Merchant Marine has earmarked M$70m for expansion of its tanker fleet from a M$99.85m rights issue. The Kuala Lumpur listed shipping firm is looking to buy more small tankers to build on its business in the Philippines and expects to increase its fleet from 13 to 16 vessels by year end. "At least two vessels will be purchased and most likely it will be more by year end. If possible it will be used for our Philippine operation," Malaysian Merchant Marine managing director and chief executive, Shahrazi Sha'ari told reporters after a signing ceremony with Affin Merchant Bank for the rights issue. The company is looking for vessels of 4,000 dwt to 5,000 dwt. It sees good opportunities in the Philippines where the government is pushing ahead with exploration. "We feel the timing is right. We have a few projects that we are working on and it should take off in the next few weeks. The purchase of the vessels are for the projects we have in hand right now," he said. The funds will come from a M$99.85m rights issue of which M$70m will be used for fleet expansion, M$6m to M$10m to upgrade and refurbish its existing fleet and the remainder to partially settle a bridging loan. The company is making a rights issue of 67.4m new ordinary shares of M$1 each in MMM together with 13.5 million free detachable warrants on the basis of 10 rights shares with two warrants for every 20 existing MMM shares held. The company is also issuing up to 113.4m new Islamic preference shares of M$1 each in the company together with 45.3m free detachable warrants and 56.7m free detachable IPS warrants on the basis of 10 rights IPS with four warrants and five IPS warrants for every existing IPS held. The Malaysian company is also eyeing other areas for expansion including Iraq. Last September MMM announced it was planning to enter the bunker supply market in Iraq through a joint venture with Iraqi Oil Tankers Co. Meanwhile brokers report that MMM has sold it largest vessel the 1981-built, 140,086dwt capesize bulker MMM Diana for US$14.5m to Chinese buyers. © 2005 T&F Informa UK Limited.
Maritime security fleet grows
APPOINTMENTS to the newly expanded US Maritime Security Fleet will move forward despite two protests from disgruntled applicants. Maritime Administration (MarAd) spokesman Susan Clark told Fairplay that complaints to the General Accountability Office (GAO) will not delay this week’s scheduled naming of 60 vessels to the programme. Each vessel receives $2.6M a year in return for giving first allegiance to US military cargoes. United States Ship Management and Liberty Global Logistics filed protests to the bid process on 28 January with the GAO and those complaints will be resolved by 4 May, according to an agency spokesman. Liberty filed briefs urging MarAd to choose its ro-ros over the container vessels that are a traditional part of the MSP fleet. USSM’s argument is broader and stems from its long battle with Maersk over the ownership of 15 of the existing MSP slots. © Lloyd's Register - Fairplay Ltd.
Piracy deaths rise despite falling tally of incidents
MALAYSIA - Some 30 seafarers were killed in piracy incidents worldwide last year, a sharp increase on the 2003 total of 21 despite a considerable fall in the overall number of attacks. In addition, 86 crew members were kidnapped, with pirates frequently demanding ransom. The statistics are contained in the annual report of the International Maritime Bureau. The good news is that the total number of piracy cases in 2004 was 325 compared with 445 in 2003. But despite that decline the watchdog warned that violence remained at high and even increasing levels, particularly in “hot spot” areas. Indonesia continued to record the biggest number of attacks, with 93 reported incidents. While a fall from the 2003 total of 121, it still represents more than a quarter of the worldwide incidents of piracy and armed robbery against ships. Attacks in the Malacca Straits are ranked second highest with 37 incidents. Many of these were serious, involving such tactics as use of firearms and kidnapping. Last year the Malacca Straits saw 36 crew members kidnapped, four killed and three injured. Nigeria is also causing concern despite a decrease in incidents from 39 in 2003 to 28 in 2004. © Informa Asia Publishing Ltd.
Singapore bunkers 'uncontaminated'
SINGAPORE’S Maritime and Port Authority has assured that contaminated bunkers would not be sold in the island. “Due to public awareness and checks in place, the high sodium oil cargo is not likely to enter the bunker market,” MPA told Fairplay. Market sources indicated that the stock would be processed or exported. “To date MPA has not received any bunker disputes regarding high sodium fuel. We will continue to monitor the situation,” MPA said. Fuel testing agency DNV Petroleum Services had discovered high sodium content in samples from Singapore deliveries that were tested in December and January. High sodium levels may cause increased corrosion to high pressure parts of the fuel system and to exhaust valves. Fuel trader ExxonMobil has acknowledged that there is a dispute on cargo qualities of fuel loaded at Yanbu refinery in Saudi Arabia. Fairplay understands that quantities of high sodium content fuel imported into Singapore amounted to nearly 400,000 tonnes. Singapore sold a record 21M tonnes of bunkers in 2004. © Lloyd's Register - Fairplay Ltd.
Singapore launches anti-terror assault team
SINGAPORE – Singapore has commissioned a crack maritime assault team to counter the threat of terrorism against its port. Situated on one of the world’s busiest waterways, and with neighbouring Indonesia having experienced a number of extremist attacks, Singapore has added a maritime assault capability its police force’s Special Tactics and Rescue Unit. “Under the shadow of the global terrorism threat our ports and vessels have unfortunately become vulnerable to terrorist attacks and criminal elements,” said Associate Professor Ho Peng Kee, Singapore’s senior minister for law and home affairs. “The new capability is part of building up of resources and capabilities to deal with threats in a maritime environment.” The unit is designed to stop hijackings at sea and deal with other maritime terror threats. The unit has received training from foreign security experts and held joint exercises with more experienced forces from other countries. “These have prepared our officers for specialised tasks such as assault diving, vessel boarding techniques and close quarter confrontations on board sea-going vessels,” said Prof Ho. The new force will add to the existing maritime security efforts of Singapore police coastguard and the navy. The force was launched with an exercise in which two Patriot assault boats chased a ferry hijacked by pirates at 50 knots, boarding the vessel and subduing the pirates before they could leave Singapore waters. © Informa Asia Publishing Ltd.
Singapore records strong growth
SINGAPORE has continued to record strong growth in the port and maritime sector, according to figures released by the Maritime and Port Authority. The Singapore Registry of Ships, which is the largest in Asia, grew 8.4% in 2004 with a fleet of 3,109 and aggregate tonnage of 27.7Mgt. Bunker sales touched a record 23.6M tonnes, while total cargo handled rose 13% to 393M tonnes. The MPA has reiterated that it will continue with industry friendly policies. “The MPA will continue to review its policies to ensure that the Port of Singapore remains competitive,” said MPA chief executive Lui Tuck Yew. “In addition we will continue to work closely with the maritime industry to further develop a conducive and pro-business maritime environment,” he added. © Lloyd's Register - Fairplay Ltd.
Singapore unveils new port security team by Marcus Hand
Singapore has commissioned a new crack maritime assault team to guard against the threat of terrorism against its port. Situated on one of the world’s busiest waterways and neighbouring Indonesia which has experienced a number of extremist Islamic terror attacks, Singapore has added a maritime assault capability its police force’s Special Tactics and Rescue Unit. "Under the shadow of the global terrorism threat, our ports and vessels have unfortunately become vulnerable to terrorist attacks and criminal elements," said Associate Professor Ho Peng Kee, Singapore’s Senior Minister of State For Law and Home Affairs. "The new maritime assault capability within STAR Unit is part of its building up of resources and capabilities to deal with threats in a maritime environment." The unit is designed to stop hijackings at sea and deal with other maritime terror threats. The unit has received training from foreign security experts and held joint exercises with more experienced forces from other countries. "These have prepared our officers for specialised tasks such as assault diving, vessel boarding techniques and close quarter confrontations on board sea-going vessels," Prof Ho said. The new force will add to the existing maritime security efforts of Singapore police coastguard and the navy. The new force was launched with an exercise in which two patriot assault boats chased a ferry hijacked by pirates at 50 knots boarding it and subduing the pirates before they could leave Singapore waters. © 2005 T&F Informa UK Limited.
Southeast Asia hijackings spark ‘phantom tugs’ fears
MALAYSIA - Piracy watchdog the International Maritime Bureau warns that a fleet of phantom tugs may be plying southeast Asian waters after a spate of hijackings. “The number of tugs and tows being stolen in southeast Asia has prompted fears that a new trade in phantom tugs may be emerging and preparing to operate in much the way that phantom ships did,” said Commercial Crime Services, part of the International Chamber of Commerce. The number of tugs and barges hijacked in southeast Asia has been steadily rising and there were 24 attacks worldwide last year. The piracy attack figures are compiled by the IMB, which is part of the ICC’s commercial crime services unit. Investigators believe that the hijacked tugboats could well be being used as phantom vessels much as hijacked ships were in the region in the late 1990s. The geographical nature of the region, with a large number of shallow drafted rivers and inlets where tugs gain access to smaller ports, makes it suitable for organised criminal gangs to operate pirate ships. In small ports it relatively easy for a tug and barge to come in, load cargo and then take the cargo out to sea where it is transhipped. “Evidence for this claim can be seen in several recent cases where tugs and tows have been hijacked and their identities quickly changed in an operation almost certainly controlled by organised crime gangs,” the CCS said. An Indonesian tug, Christian, and a barge it was towing, hijacked on December 14 last year, were found in a Malaysian shipyard with the tug’s name and port of registry changed. The yard had been paid in advance for the work, which was done with care to wipe out traces of the previous names. “This suggests the tug was being prepared to re-enter the market as a phantom,” CCS said. © Informa Asia Publishing Ltd.
Thai-Chennai link launched
A NEW Thailand-Vietnam-Singapore-Malaysia-India service is being launched by Tokyo Senpaku Kaisha Line, Samudera Shipping Line and Regional Container Lines. The Thailand-Chennai Express string will begin westbound operations from Singapore on 16 February. Tokyo Senpaku will deploy the 1,005 TEU Sagar, Samudera will contribute the 1,060 TEU Sinar Bali and RCL will run the 1,228 TEU Ganta Bhum on the route. The trade lane offered by TCX will focus on exports from Thailand and will be the first to offer a direct service from Thailand to Chennai, India. The port rotation will be Bangkok, Laem Chabang, Ho Chi Minh, Singapore, Port Kelang, Chennai, Port Kelang, Singapore and Laem Chabang. © Lloyd's Register - Fairplay Ltd.
US ports warn of funding deficit
PORTS across the US are getting short changed in both security funding and improvements in navigational needs, according to the head of the port trade group. Kurt Nagle, president of the American Association of Port Administrators, said today that the new White House budget lumps ports in with other transport facilities from a security grant standpoint, a move that threatens what is already termed insufficient funding. The total proposed for all transport security grant funding for 2006 is $600M, which Nagle says is $200M less than the combined total last year. He said ports need at least $400M just for their needs and intends to lobby Congress to both segregate the port grant money and increase the share. He also noted that funds for dredging are being cut in 2006 just as many US ports are trying to deepen their channels.Only $4.5M has been requested for capital dredging projects and Nagle says at least $5.5M is needed. "Vital port needs are being overlooked and underfunded," he said. His remarks came at a press conference held at Washington's National Press Club. © Lloyd's Register - Fairplay Ltd.
World number one crashes into the red
HYUNDAI HI, the world’s largest shipbuilder, made a loss in 2004, which it attributed to the rising cost of steel plate prices. Despite an 11% year-on-year increase in turnover, it made an operating loss of W98.1Bn ($95.7M) compared to a profit of W274.5Bn in 2003. Turnover is now W9.1Trn from W8.2Trn the previous year while pre-tax profit was cut to W55.5Bn from W184Bn in 2003. Successive steel price hikes, as well as rising costs for marine equipment and the appreciation of the Korean won, have sliced into profit margins despite HHI winning new orders worth $8.5Bn in 2004. © Lloyd's Register - Fairplay Ltd.