Malaysia confirms crew deaths
THREE tug crew members kidnapped by pirates last year have died, Malaysian authorities have confirmed. For full story see LR-Fairplay's port and maritime security news product Sea Sentinel, at www.sea-sentinel.com. © Lloyd's Register - Fairplay Ltd.

Malaysian maritime industry not affected by tsunami disaster
The tsunami disaster which claimed thousands of lives in the region has left the Malaysian maritime industry unscathed. Both the International Ship Owners Association of Malaysia (ISOAM) and the Malaysian Shipowners Association (MASA) have confirmed that, as yet, none of their members have reported any losses to ships or their crewmen. “As far as MASA is concerned, none of our members are affected. “Most of our ships are currently plying their international routes, and we have not received any bad news from them,” said MASA chairman Datuk Dr Nik Mohd Zain Omar. ISOAM chairman Datuk Abdul Latif Abdullah said all their ships were safe, including the smaller feeder vessels. “This is our first experience of this kind of incident, so we were caught unprepared. “But the way ships are built these days, they are able to withstand the pressure and make the perils of the sea somewhat less perilous. “However, I hope this will make us aware of the need to be prepared for natural disasters like these,” he said. Malaysian Maritime Institute (IKMAL) president Capt Jaffar Lamri said it was a common practice for ships to head out to sea when they hear of approaching tidal waves. “It is safer out at sea, because ships can ride even the biggest of waves. “They have built-in stabilisers that enable them to withstand even the worst weather,” he said, adding that out at sea encountering 50- or 60-foot waves were commonplace occurrence. He said an early warning centre needed to be set up to detect and warn people of impending disasters such as tsunamis. “Based on what happened, you can say that this is a lesson learnt the hard way. “A warning system needs to be established, especially to notify coastal states. “A lot of time elapsed between the earthquake and the tidal waves hitting shore. “If the people can be warned in time, then the bigger ships can leave for sea while the smaller boats can be removed from the water. “We are quite lucky this time in the sense that the waves were not too big. “It happened now and it can happen again next time,” he said. Penang Port reported that their operations were not impacted at all by the tidal waves. “We suffered no damage and our ships as well as our ports are doing fine,” said Penang Port’s public relations head Anis Adlina. She said their ferry services were also going on as schedule. Meanwhile, freight rates are unlikely to increase due to the disaster as most ports in the region did not suffer serious damage. Damage had been restricted to urban and tourist areas and had left commercial and port facilities largely untouched. © Star Publications (Malaysia) Bhd.

Maritime institute and museum for Port Klang bY Marc Lourdes
The Port Klang Authority (PKA) plans to build a maritime institute and a maritime museum in the port vicinity earmarked for redevelopment. The idea for the two buildings are just part of a master plan to turn Port Klang into a port city. “We need to revamp and overhaul the development of the port town,” said PKA chairman Datuk Yap Pian Hon. “We want to beautify the port areas in line with our aim of creating a port city. “My first task is to clean up this land and resettle the squatters in the area,” he said. In line with the plan, a committee called the Port Klang Authority Land Development Committee has been set up. Its members comprise representatives from the state government, the Klang land office, the Klang Municipal Council and other related agencies. “The committee was formed to look at the land problems in the port’s vicinity,” said Yap, adding that the problems chiefly revolved around resettling squatters. “We have identified three areas of concern – PKA land, KTMB reserve land and the Drainage and Irrigation Department’s (DID) reserve land.” PKA’s land currently houses 240 squatter families in Kg Sungai Aur and two families in Kg Berembang. “We got approval from the state government in August and have asked the Klang Municipal Council (MPK) to help clear these places. “However, the resettlement will not create any ill feelings as the squatters will all be given their own homes,” Yap said. He said the squatters from Kg Sungai Aur would be given housing in the second phase of the Taman Pendamar Indah housing project while the families from Kg Berembang had been offered units in Taman Sri Berembang. “They would all have been resettled, probably by March. “This entire project is in tandem with MPK’s “Zero Squatter” project for 2005.” On the other hand, three villages have escaped the axe because the houses have been built in an orderly and well-coordinated manner. The villages are Kg Keretapi, Kg Sungai Sireh and Kg Sungai Sireh Tambahan. “The infrastructure in these three villages will be upgraded instead, “ said Yap. © Star Publications (Malaysia) Bhd.

Marshall caution on Malacca
THE marine safety team of the Marshall Islands maritime authority has recommended issuing an advisory urging vessel masters to take care navigating shallower areas of the Malacca Strait. "There has been tremendous wave action after the underwater earthquake and all we are saying is that the shallow water areas are the places to watch out for," Marshall Islands International Registries maritime manager Bill McCuskey told Fairplay. He said the Marine Safety Department, staffed by ex-US Coast Guard officers and seafarers, believe the sand waves created by the 26 December tsunami could have changed water depths in some areas of the 600-n-mile Strait. The authority urged the shipping community to make checks and report any changes in charted water depths. "There is no indication that the Strait is silted up, but we just want masters to be aware that what is on the charts in some areas of the straits may not necessarily be there," McCuskey said. The Marshall Islands issues around 80 safety advisories a year. © Lloyd's Register - Fairplay Ltd.

MISC container shipping arm set for $460m sell off
MALAYSIA – After exiting dry bulk shipping, Malaysia International Shipping Corp is looking to sell a stake in its container shipping arm, with Hong Kong’s Orient Overseas Container Line the front runner. MISC, which has been taking advantage of high market values to exit non-core businesses over the past year, has put a majority stake in its container shipping division up for sale, industry sources said. Industry sources said MISC was looking for a joint venture partner for its liner shipping business, valued at around US$460m. The Malaysian national shipping company is understood to be looking to sell a majority stake by the end of the first quarter, but to retain the liner division under the MISC brand. MISC has a fleet of 20 container vessels, four over 3,000 teu, eight between 1,000 teu and 2,000 teu and eight under 1,000 teu, plus two 7,900 teu capacity vessels on order from Daewoo Shipbuilding and Marine Engineering. Although many companies are said to have looked at the fleet, it is MISC’s partner in the Grand Alliance, OOCL, that has emerged as an early frontrunner. One source said that OOCL was the only company to have put a bid in so far, but that there were a number of other companies interested. “OOCL is very close to MISC,” a broker commented. With OOCL having 26 vessels under 3,000 teu on short term charter, MISC’s fleet would prove an attractive fit. Talk of interest from the Hong Kong company was further fuelled by the appointment of former senior OOCL executive Niels Kim Balling to head MISC’s liner division in the first half of last year. An OOCL spokesman declined to comment. Banking sources indicated that rapidly expanding container lines Mediterranean Shipping and CMA CGM were among the interested parties. © Informa Asia Publishing Ltd.

MISC denies plan to sell box stake
MALAYSIA – Malaysia International Shipping Corp has denied reports that it plans to sell a stake in its container shipping arm. Although market sources across Asia say that a stake was put up for a sale a few weeks ago with Orient Overseas Container Line front-runner, the Malaysian national shipping company says it has no plans to exit container shipping. “MISC would like to reiterate that the company does not intend to sell off its container shipping business as claimed in the report,” MISC said in a statement. “MISC will continue to be in the container shipping business in support of national interests as well as to provide a total logistics solution to its customers through its logistics arm, MISC Integrated Logistics Services.” MILS is a third-party logistic company MISC set up in 2001. “MISC will continue to rationalise and optimise its intra-Asia service while maintaining its focus on the more lucrative long-haul container shipping services and on building capabilities to be a world-class logistics provider.” The sale of all or part of MISC’s liner arm is potentially controversial as it is often seen as part of Malaysia’s national interest to have its own container line. © Informa Asia Publishing Ltd.

MISC denies stake sale to OOCL
MALAYSIA International Shipping Corp, whose main focus is energy transport, has denied reports that it is disposing of its container business. The clarification follows reports that Hong Kong based Orient Overseas Container Line (OOCL) is in talks to acquire a majority share in MISC. OOCL, controlled by the influential Tung family – Tung Chee-hwa is the Chief Executive of Hong Kong administration – is a subsidiary of Hong Kong-listed Orient Overseas International. MISC, which is listed in Kuala Lumpur, is 62% owned by the government’s oil and gas giant Petronas. Hong Kong’s South China Morning Post had reported that the two companies are in talks over a possible acquisition, but MISC has stressed that it will continue in the liner business. “MISC would like to reiterate that the Company does not intend to sell off its container shipping business as claimed in the report,” MISC said in a statement. Both MISC and OOCL are members of the liner grouping Grand Alliance. © Lloyd's Register - Fairplay Ltd.

Missing tug and barge worries ICC
The International Chamber of Commerce (ICC) is concerned about the safety of the crew and their vessels following the recent disappearance of two ships in South-East Asia. Presumed to be attacked by pirates, the tug Christian and barge Flora were en route from the Philippines to Kota Baru, Banjarmasin, Indonesia. The last known position of these two vessels was 05:34N - 119:22E, reported on Dec 14. The tug and the barge could be sailing under changed names, colours or flags. “This most recent attack is part of a disturbing trend. “In 2004 alone there were 23 attacks aimed at hijacking tugs and barges in South East Asia,” said ICC's International Maritime Bureau director Captain Pottengal Mukundan. “In many of these cases, the crew were abducted or abandoned after hijackers took control of the vessels.” A recent incident in the Straits of Malacca highlights the dangers the missing barge and tug may be facing. On Dec 15, 20 pirates armed with machine guns, operating from two fishing boats, fired upon the tug Ena Sovereign. The attackers boarded the vessel, kidnapped the master and chief engineer, and took all the ship’s documents, property and crew belongings before escaping. The Ena Sovereign was towing a barge at the northern end of the Straits of Malacca midway between the coasts of Indonesia’s troubled Aceh province and Malaysia. Capt Mukundan said tugs and barges had become easy targets for pirates because they travelled at slow speeds. He said armed criminal gangs often approach in multiple speedboats and easily board and take over the slower ships. “Apart from stealing the property on board, the pirates have also resorted to kidnapping the crew and demanding a ransom for their release.” Research conducted by the IMB indicates cause for concern, as there is a continued pattern of hijacking, theft and abductions in this region. Anyone with information about the Christian or the Flora are asked to contact the Kuala Lumpur-based IMB Piracy Reporting Centre’s 24-hour anti-piracy help Line: 603 2031 0014 (24 hours). © Star Publications (Malaysia) Bhd.

Neil Kinnock to advise BIMCO on EU maritime affairs
Former European Commissioner Neil Kinnock has become BIMCO's advisor on European maritime affairs, the international shipping organisation has announced. He took up his position as BIMCO’s EU Liaison Officer with effect from 1st January, 2005. The British and European Politician, who stepped down as Vice-President of the European Commission last year, will assist BIMCO in its efforts to create a closer dialogue with Brussels one behalf of its members. Commenting on the appointment of Neil Kinnock, BIMCO’s President Mr. C.C. Tung said that “BIMCO has a positive contribution to make to maritime developments within the EU. As the largest of the international shipping organisations and with membership spanning all aspects of the industry, BIMCO is in a unique position to bring the industry’s views and pragmatic solutions to the attention of the relevant authorities.” The process has already begun with a close dialogue established with the European Maritime Safety Agency (EMSA) to deal with a range of safety and environmental issues. The knowledge and experience of Neil Kinnock, particularly as a past Member of the European Commission responsible for Transport policy, the President added, would "assist BIMCO in its aim of positively engaging in the maritime policy debates in a constructive way and contribute to our own considerable body of knowledge, expertise and experience". Mr. Kinnock said: “The maritime industries are vital to European and World development and prosperity, and BIMCO has long been engaged in promoting progressive policies and practises in shipping. I was therefore very pleased to receive their invitation to work with them in a liaison capacity and I look forward to an interesting and productive relationship.” Neil Kinnock, who is also Chairman of the British Council and will soon take his seat in the UK House of Lords, served a full term as European Transport Commissioner (1995-1999) after stepping down as Leader of the Opposition in the British Parliament. He was appointed Vice-President of the European Commission in 1999, and in this role was responsible for a range of reforms. BIMCO members will meet Neil Kinnock when he attends the BIMCO Centenary General Meeting taking place from 23-25 May 2005 in Copenhagen. © BIMCO

No cruises to Phuket until March
ASIAN cruise operator Star Cruises will continue to skip the Thai resort of Phuket until the end of February. Itineraries for SuperStar Virgo and SuperStar Gemini had been amended following the 26 December tsunami. Sailings to Phuket were cancelled and the ships have now been calling at the Malaysian destinations of Langkawi Island and Penang. The World Health Organization has advised a 'close watch' on the tsunami-affected areas for a month. Following the amended three-night cruise itineraries, passengers on SuperStar Virgo are being given dining credit of S$100 ($61) per cabin while those on board SuperStar Gemini are provided complimentary transfers to town in Penang and Langkawi. © Lloyd's Register - Fairplay Ltd.

Northport chief foresees 10% growth in 2005 by Marc Lourdes
Northport is expecting to benefit from the continued buoyancy of the shipping industry and achieve a growth of 10% in container volume in 2005. Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader said the outlook for port business in the new year was very optimistic. “Competition will continue to be intense in light of the new terminal capacity being installed in most of regional ports. “Barring unforeseen circumstances, we expect to achieve 10% growth in 2005.” As at November 2004, Northport had handled a total of almost 2.5 million TEUs, representing an increase of 6.5% compared to the same period in 2003. Basheer said Northport would continue to explore opportunities to broaden its market and provide a hassle-free environment together with a wide range of value-added activities to induce further growth for the benefit of its customers. “We have allocated RM170.5mil for various port development projects over the last two years and the majority of this amount has been awarded. “From this investment, a major portion has been allocated for the development of a container storage yard, conversion of berths and acquisitions of additional equipment.” He said the development was chiefly reflected in work on Container Terminal 3 and the conversion of berth 14 from a conventional wharf into a multipurpose dock capable of handling container vessels of up to 120,000 displacement tonnes with a draft of up to 15m. “Work on it is due to be completed in March. “This will give an additional quay length of 178m, bringing our capacity up to four million TEUs. “The total linear berth will be extended to 3.27km and will be able to meet the needs of mega-sized containerships, which require deeper draft and longer berths,” said Basheer. He also said Northport had installed several new super post panamax shoreside gantry cranes at the terminal to facilitate faster loading and unloading operations. “The port has ordered three super post panamax cranes, increasing the total fleet to eight.” Besides that, the port has also purchased an additional four rubber-tyred gantry (RTG) cranes to support landside operations. The expected delivery time for all the cranes is by October 2005. According to Basheer, Northport will be developing eight hectares (20 acres) of back-up area for container storage, thereby increasing their total ground slots (TGS) by 1,400 TEUs. The port is also developing the open yard at its Distribution Park to offer more flexible land usage for cargo storage. When completed in March, the yard can be used, among others, as a car storage terminal as and when required. “We have spent about RM10mil on the construction of the new entry gates for Container Terminal 2 (CT2) and the conventional terminal to improve the overall receival and delivery system and facilitating better, faster and safer movement of cargo into and out of the port. Northport has also not been idle on the systems and IT side, with various projects in the works. Among them is the NAVIS system, expected to be implemented by the first half of 2005. Furhermore, they have also enhanced the e-billing, as well as enabling the usage of MyKad in the port and creating new web-based services to cater to the industry's needs. Basheer lamented the fact that some shipping lines had chosen to omit Port Klang from their routes in order to recover their service schedule which had been badly affected by the delays to vessels. “Port Klang is congestion free and we urge shipping lines to look again at their current arrangement for schedule recovery. “It is unfortunate that Port Klang has been labelled traditionally as a convenient port for omission; with the operational efficiency today we want shipping lines to know that Port Klang is capable of schedule recovery.” © Star Publications (Malaysia) Bhd.

Pakistan-India survey boundary
PAKISTAN and India have started a joint survey of boundary pillars at the disputed Sir Creek on the Sindh coast that has obstructed demarcation of their maritime boundaries and offshore exploration zones. Pakistan foreign office spokesman Masood Khan said yesterday that border guards, surveyors and technicians from both countries are taking part in the survey, which is likely to be completed in three to four weeks. India had claimed its boundary lies in the middle of the 60km estuary while Pakistan said it is on the eastern bank. Both countries have to submit their maritime boundaries to the United Nations by 2009 in order to claim exclusive economic rights over waters 350km offshore as part of international efforts to demarcate the continental shelf. Maritime industry sources believed resolution of the Sir Creek dispute would boost the maritime offshore industry, as the economically strategic area is believed to hold abundant deposits of oil and gas. © Lloyd's Register - Fairplay Ltd.

Pelepas surpasses 4M TEU mark
TANJUNG Pelepas, the Malaysian port competing for transhipment containers with neighbour Singapore, broke the 4M TEU mark for the first time last year. Throughput climbed to 4.02M TEU, a 15% leap over 2003, on the back of business from liner majors Maersk and Evergreen, prompting port authority chief executive Mohd Sidik Shaik Osman to describe 2004 as a "spectacular year.” The quantity of local cargo handled rose 12% to 168,000 TEU. With the completion of two berths last year as part of the second phase of development, PTP now offers eight berths of 2.8km in length. In anticipation of still greater volumes, PTP will add three new super post-Panamax cranes, 15 RTGs while container yard capacity will expand to 154,000 TEU. Cargo volumes from the port’s free zone area rose 20% and PTP expects the Phase A distripark to be fully occupied in 2005. © Lloyd's Register - Fairplay Ltd.

Ports closed by Tsunami
THE tsunami that devastated some coastal regions in the Indian Ocean also damaged ports in areas close to the 9.0 earthquake epicentre. Ports on the western side of the Indonesian Island of Sumatra and ports in the Nicobar Isles have been heavily damaged and remain closed. The major Indian port of Chennai has reported damage to infrastructure and channel silting which has been estimated as costing $6M to repair. Early reports from Galle in Sri Lanka say the port is closed as a result of silting. The Marshall Islands register has issued a warnings to ships passing through the Strait of Malacca that silting has reduced water depths. Lesser damage has been reported to ports in the Maldives, Sri Lanka, Indian east coast, Andaman Islands, Thailand’s west coast and parts of Indonesia. A spokesman for the United Kingdom Hydrographic Office told Fairplay that regional offices are co-ordinating but that it is too soon to say what effect, if any, the tsunami has had on the seabed. © Lloyd's Register - Fairplay Ltd.

Reclamation row to be resolved
SINGAPORE and Malaysia have agreed to resolve differences over reclamation works in the Straits of Johor through mutual consultation. Malaysia had alleged that Singapore’s reclamation in the border areas of Tekong and Tuas had narrowed shipping lanes in the Strait, damaged beaches and harmed fisheries. Malaysia had also charged that Singapore was encroaching on its territorial waters. It had sought an order from the International Tribunal on the Law of the Seas (ITLOS) to stop Singapore’s reclamation work. The tribunal rejected the request last October, but advised the setting up of a panel of independent experts to study the impact of the reclamation. “Both governments accepted the recommendations of the Group of Experts and agreed to use these recommendations as the basis of a mutually acceptable and beneficial solution,” the Singapore government has stated in a press release. Singapore’s Maritime and Port Authority and Johor Port Authority will be monitoring developments and exchanging relevant information. © Lloyd's Register - Fairplay Ltd.

Selendang Ayu lightering begins
THE removal of oil from the wreck of the bulker Selendang Ayu began on Monday off Unalaska Island in the US. Three tank container loads of oil were pumped from the vessel and ferried from the vessel's deck by helicopter ashore. A spokesman for Smit, which has the contract to remove the bunkers, told Fairplay it is estimated that 1,500-1,600 tonnes of oil were in the wreck. He added that work to remove the oil is expected to take 10-12 days, depending on the weather conditions. The removal of the oil had been delayed by several days due to adverse weather conditions. A separate tender for salvage of the vessel is expected in the spring when the weather improves. © Lloyd's Register - Fairplay Ltd.

Singapore backs claims convention.
SINGAPORE has acceded to the IMO convention on maritime claims. An instrument of accession to the International Convention on Limitation of Liability for Maritime Claims (LLMC), 1976 was deposited yesterday, the Maritime and Port Authority has stated. The accession will be effective from 1 May this year. The LLMC 76, which entered into force on 1 December 1986, replaces the International Convention relating to the liability of owners signed in Brussels in 1957. “Singapore’s accession will help safeguard the interest of the shipping community and provide greater certainty to the outcome of the compensation regime,” MPA said. The accession is also seen as enhancing Singapore’s “attractiveness” as a centre of maritime law and arbitration because Singapore’s legislative standards would be aligned with those of leading maritime nations. © Lloyd's Register - Fairplay Ltd.

Singapore eases tax procedures
SINGAPORE has eased procedures for ship owners to claim tax exemptions for foreign exchange and derivative gains. “With effect from Year of Assessment 2006, the foreign exchange and derivative gains of Singapore-flagged ships and AIS companies will automatically be regarded as shipping-related hedging gains, and hence will qualify for tax exemption,” confirmed transport minister Yeo Cheow Tong, speaking at a reception hosted by Singapore Maritime Foundation. AIS refers to Approved International Shipping Enterprise scheme, which is aimed at attracting ship owners and operators to set up operations in Singapore. The automatic exemption replaces the existing system where shipping companies are required to provide justifications to tax authorities on a case by case basis. “With this enhancement and certainty, we hope to encourage more shipping companies to undertake their risk management activities from Singapore,” the minister said. Singapore has also amended the Merchant Shipping Act to allow mobile oil rigs to come under the Singapore flag. © Lloyd's Register - Fairplay Ltd.

Singapore in ferry clamp down
Singapore is introducing a licensing scheme for regional ferry operators in an effort to enhance port security. The Maritime and Port Authority of Singapore (MPA) said regional ferry operators already had adopted a set of safety and security measures. “The new licensing regime formalises the need for compliance to the safety and security measures,” the MPA said. It added: “This is important since ferry services are a popular mode of transport for traveling between nearby destinations in the region.” With immediate effect companies that operate regional ferry services are required to obtain a licence in order to provide such services in Singapore. Currently, there are six such regional ferry operators in Singapore and all six companies have obtained the licences. “This licensing scheme is part of our ongoing efforts to safeguard the security of the ferries and passengers,” the MPA said. © www.tradewinds.no

Singapore owners request security presence for relief aid
SINGAPORE - The contribution of tugs and barges by Singapore shipowners to the tsunami relief effort depends on the regional governments guaranteeing their safety against pirates and kidnapping. The Singapore Shipping association having collected S$140,032 in donations from members for the Singapore Red Cross Society says it could do more provided if governments guarantee the safety and security of ships and crews involved in the relief effort. “I am very grateful for the selflessness and generosity of our members. Much more can be contributed by our members in the form of tug and barge services if the respective governments can guarantee the safety and security of our officers and crew on those vessels,” said SS Teo, president of Singapore Shipping Association. Following the disaster that killed over 100,000 in Aceh, Indonesia, a number of SSA members offered the use of tugs and barges to help in the relief effort in areas that would impossible to reach in larger vessels due to draught restrictions. However the seas off Aceh were prior to the tsuanami on 26 December some the world’s most dangerous for pirate attacks, with the hijacking and kidnapping for ransom of tug and barge crew having become an almost weekly occurance. Although there have no attacks reported since the tsuanami concerns remain high. “These vessels carrying international aid, relief, supplies and equipment must not be exposed to attacks by pirates and/or hijackers at sea,” Mr Teo stated. © Informa Asia Publishing Ltd.

Singapore to build jetty in Aceh
SINGAPORE is to build a permanent jetty at Meulaboh in Aceh to speed up distribution of aid to those affected by the tsunami. Meulaboh is one of the nine ports completely destroyed in Aceh and the lack of a proper jetty is hampering distribution of food and medicine. The road network is also severely damaged. Aceh, on the island of Sumatra, bore the brunt of the tsunami that was triggered by the 26 December earthquake. More than 90,000 people were killed. At present supplies are being delivered by helicopter and by boats stopping at two makeshift landing sites on shore. The jetty will be able to take in large ships, a Singapore Armed Forces official said. Meanwhile the helicopter landing ship RSS Persistence belonging to Singapore Armed Forces (SAF) arrived in Meulaboh yesterday. “This will provide a second helicopter landing platform that will expedite the delivery of relief supplies into Meulaboh,” SAF said in a statement. © Lloyd's Register - Fairplay Ltd.

Singapore warns against complacency
SINGAPORE’S Ministry of Transport has warned against complacency following a boom year in container volumes. “We cannot afford to be complacent as competition in this sector remains intense,” the ministry has stated. Malaysian rival Port of Tanjung Pelepas, which weaned Maersk Sealand and Evergreen from Singapore, is also expected to perform strongly. PTP offers cheaper rates and the luxury of surplus capacity. To counter competition the ministry and the Maritime and Port Authority have begun to identify new business opportunities to further develop the concept of a maritime cluster in Singapore. These include vehicle and petrochemical transhipment apart from enhancing ‘value-added’ services. Meanwhile, in anticipation of continued growth in the container transhipment business, plans have been initiated for adding 16 berths at the Pasir Panjang Terminal. “The lay-outs and design of the new berths will cater to mega vessels,” the ministry said. Singapore’s PSA terminals handled a record 20.6M TEU in 2004 while Jurong port in the west more than doubled its container volumes at 711,000 TEU during 2004. © Lloyd's Register - Fairplay Ltd.

Singapore within clawing distance of box port crown
SINGAPORE - The Port of Singapore narrowed the gap with Hong Kong for the crown of the world's largest container port last year, raising the spectre of the Lion City clinching the top spot in the next 24 months. Total throughput for the Port of Singapore reached an estimated 21.34m teu in 2004, just 3% lower than the 22m teu estimate for Hong Kong by the Port Development Council, which releases the final figure on January 17. Singapore grew by 15.9%, compared with the 18.41m teu it handled in 2003, based on full year figures from terminal operator PSA and January to November figures from the Maritime & Port Authority of Singapore. Hong Kong box volumes grew by a respectable but much lower 7.8% in 2004. The vast majority of volumes came from PSA, which announced on Tuesday that it had handled an additional 2.5m teu in volumes in 2004 compared with the previous year with a growth of 14.1% to bring its annual total to 20.6m teu. The remaining volumes moved through Jurong Port, which also enjoyed strong growth. Singapore has benefited from its position as a key port on the Asia-Europe trade lane, the fastest growing of the longhaul trades. With PSA already working on increasing its capacity in Singapore from 20m teu a year to 31m teu, it raises the real possibility that, should growth continue on the course seen in 2004, the Republic could overtake Hong Kong to become the world's busiest box port for the first time since 1998. © TFInforma.com

Singapore's MPA has issued new regulations.
Singapore's MPA has issued new regulations covering the handling of petroleum, explosives and dangerous goods at ports in the country. The new rules, which take effect on January 31, replace the existing categorisation system with one based on the IMDG Code and UN numbers. The relevant port circular can be found at www.mpa.gov.sg/circulars_and_notices/pdfs/pc05-02.pdf. © Informa Publishing. Hazardous Cargo Bulletin.

Tanker: China, Iraq biggest factors.
Energy demand growth from China and oil production from war-torn Iraq will be the two biggest wildcards deciding the price of crude in 2005, consultancy Energy Security Analysis Inc. said on Friday. Rapid demand growth from China and spotty exports from Iraq due to sabotage from militants contributed to a 33% surge in oil prices in 2004. "With a global market already fixated on the lower levels of spare capacity, this continued uncertainty will exert heightened psychological pressure on crude prices," said ESAI's Rick Mueller. U.S. oil futures were hovering just under $49 a barrel Friday, up sharply as a cold spell boosted heating demand in the Northeast. Analysts polled by Reuters suggested that the price would moderate in 2005 to average $41.28. ESAI said it expected China's energy demand to rise by 500,000 barrels per day in 2005, in line with U.S. government forecasts and reflecting a big slowdown from 2004 when demand for electricity from oil-fired plants soared. "Historically, the pattern for Chinese growth has been that of large demand leaps followed by sharp contractions," says Mueller "We see growth in 2005 to fall somewhere between these two alternative paths." Iraq has not met demand. Senior oil official Dhiaa al-Bakkaa has said Iraq could export 250,000 barrels per day from the north if the attacks stopped, but sabotage has been relentless. Iraq is exporting around 1.5m bpd from its southern Basra terminal offshore in the Gulf. Power cuts have forced reductions in the southern flows. The higher prices has not helped demand for stems. VLCC rates for Middle East Gulf to China/Taiwan are soft again around W71, while rates to India/Pakistan remain soft around W91. Rates for VLCC loaders from West Africa to China/Taiwan remain steady around W80, while to South Korea they are unchanged around a soft W78. © T & F Informa.

Tsunami may have changed depth in Malacca Straits, ships warned by T. Selva
Ships plying the Straits of Malacca have been alerted to check the water depth regularly because the channel may have been altered following the tsunami disaster on Dec 26. The sand waves created by the tsunami could have changed the water depth following seabed movement in some shallow areas of the 600-nautical-mile-long straits. In an advisory to mariners, Marshall Island marine authorities urged the shipping community to observe any depths that may have changed and to make the appropriate reports. Among the procedures recommended are:
- Listen for broadcasts of changes in depths from shore stations and report them to your DPA immediately if any such reductions are found;
- Turn on the ship’s echo sounder recorders during transits through the Straits, especially in the vicinity of One Fathom Bank, carefully marking times on the recorder paper together with GPS positions, and note any depths less than charted;
- Advise Vessel Traffic Station traffic control of any depths less than charted;
- Notify hydrographic services directly of any depths less than charted and changes in aids to navigation and other hydrographic data; and,
- Consider broadcasting a security message if serious reductions in depths are noted.
Ship managers are requested to consider the foregoing guidance and incorporate these actions into watch standing procedures, especially aboard deep draft vessels transiting the Straits of Malacca. Malaysian Maritime Institute (Ikmal) president Capt Jaffar Lamri said all vessels should follow the shipping advisory with seriousness. He said the hydrographic survey team under the Royal Malaysian Navy should conduct seabed checks in the critical areas of the busy Straits of Malacca immediately. “We cannot allow ships to run aground or the keel of any vessel being damaged by shallow waters in the straits to occur. “This is because such accidents can choke the straits which is one of the busiest waterways in the world and used by more than 60,000 ships yearly,” he said. He said the depths in the Straits of Malacca are irregular, with the shallowest parts just 25m deep. “Shifting sand banks and mud flaps have been recorded in several places before and today’s super tankers have drafts of more than 23m. “An under keel clearance of 3.5m is required for shipping, in accordance with the International Maritime Organisation’s Rules for Vessels Navigating through the Straits of Malacca and the Singapore Straits,” said Capt Jaffar. © Star Publications (Malaysia) Bhd.

US Maritime Security Fleet grows
THIRTEEN new vessels will join the lucrative Maritime Security Program operated by the US Maritime Administration under an expanded scheme that increases the fleet from 47 to 60 vessels. Vessels in the programme, authorised in 1996, must give first allegiance to transporting goods for the US military and are compensated for that pledge. The re-authorised scheme includes annual funding for 2006-08 of $156M, which increases to $174M in 2009-11, and to $186M for 2012-15. Of 142 applicant vessels, MarAd chose the following ships: three tankers operated by Overseas Shipholding Group: Maersk Rapier, Maersk Regent and Maersk Richmond; four ro-ros operated by Fidelio: Takasago, Resolve, Otello and Aida; two further ro-ros: Hercules Leader and Splendid Ace, operated by Central Gulf Lines and Liberty Global Logistics respectively; two geared container vessels operated by Lykes Lines: Lykes Motivator and TMM Yucatan; and two heavy-lift vessels, Industrial Challenger and Industrial Chief, operated by Patriot Shipping. Only US-flagged vessels qualify for the programme. © Lloyd's Register - Fairplay Ltd.