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Container rates ‘must rise’
New York - Container rates in the transpacific trade must rise in 2008, or tonnage recently pulled from the route will not be replaced, warned APL chief executive Ron Widdows yesterday. Speaking to the Container Transport Investment Conference in New York, he said: “Supply and demand is not really relevant in 2008, and if the US economy is not faring well, that will not be relevant. There is a very different dynamic taking place now,” argued Widdows, who is also chairman of the Transpacific Stabilisation Agreement. “The bunker surcharge will be significantly higher going forward, because it must be higher. If rates do not come up to the required level, then the ships simply aren’t coming back.” Some ships would be placed in the intra-Asia market and others in Asia-to-Europe, instead of returning to the transpacific, which has been a money-loser for carriers in 2006-07. But Widdows is optimistic that shippers will pay up, noting that carriers have already convinced some customers to pay higher bunker surcharges on a voluntary basis. "Bunker costs are bringing about a fundamental change in the way we do business,” he explained. The amount of carriers’ uncovered bunker costs in the past year within the transpacific trade alone was “enormous”, he added.
Global pirate attacks up 10% in 2007
Kuala Lumpur - Global pirate attacks rose by 10 percent in 2007, marking the first increase in three years as sea robbers made a strong comeback in Nigeria and Somalia, an international maritime watchdog said Wednesday. Last year, there were 269 attacks on ships, up from 239 in 2006 and reversing a downtrend seen since 2003, the International Maritime Bureau said in its annual report released by its piracy reporting center in Malaysia. "The significant increase in the (2007) numbers can be directly attributed to the increase in the incidents in Nigeria and Somalia," IMB director Pottengal Mukundan said in a statement. Attacks in Nigeria surged to 42 from 12 cases in 2006, he said. Somalia reported a threefold increase of 31 cases, from 10 in 2006. The IMB report said pirates were better armed and more violent in 2007, with 18 vessels hijacked worldwide, 292 crew members taken hostage, five killed and three still missing. Guns were used in 72 attacks, up 35 percent from 2006. It said 64 crew members were assaulted and injured, compared to only 17 in 2006, with majority of the incidents occurring off Somalia's coast. The report said pirates used rocket propelled grenade launchers and automatic weapons as well as mother vessels to launch smaller craft to attack ships further away from Somali's coast. Somalia's 1,880-mile coastline is the longest in Africa and near to key shipping routes connecting the Red Sea with the Indian Ocean. Wracked by 16 years of violence and anarchy, Somalia does not have its own navy and the transitional government formed in 2004 with U.N. help has struggled to assert control. The IMB urged ships to stay as far away as possible from the Somali coastline. In Nigeria — Africa's oil producer — attacks were focused in hotspots like Lagos, and some were linked to so-called militants claiming to pursue political goals, the report said. Indonesia remained the world's hottest piracy hotspot with 43 attacks last year, but this was down from 50 cases in 2006 and were mainly low-level crimes, the report said. The IMB also applauded authorities in Bangladesh for curbing attacks to 15 last year, down from 47 in 2006. Cases in the Malacca Strait, a bustling shipping route that carries half the world's oil and more than a third of its commerce, also fell for a third successive year to seven, from 11 in 2006, it said. © 2008 The Associated Press.
Government to combat illegal fishing
Jakarta - To help combat illegal fishing, the Maritime Affairs and Fishery Ministry will issue a revision of a 2006 ministry regulation on fisheries later this month, an official said. Aji Soelarso, director general of the maritime resources surveillance and control division at the ministry, said Friday the revision was needed as the illegal practices had reached an alarming level and caused huge losses to the country. "The revised ruling will prohibit foreign fishing vessels to operate in our waters if they do not have an industrial processing base in Indonesia," Aji told The Jakarta Post in an interview. He said they could either establish their own industrial bases or cooperate with local companies in the form of a joint venture. The 2006 regulation was initially aimed at revitalizing the country's fishery processing industry, but it did not require foreign vessels to have an industrial base here, he said. The forthcoming revision will call for the revocation of the existing licenses of foreign fishing vessels if they fail to comply. "With the revision, I expect it will not only create new jobs for local people, but also generate foreign exchange," Aji said. No exact figure is available for the damage caused by illegal fishing, but previous ministry's reports estimated the country suffered over US$3 billion in losses per year. In addition to the material loss, the practices have also caused damage to coral reefs as a result of the use of explosives. "Indonesia is among the top eight countries in the world when it comes to fish stocks, higher than such neighbors as Malaysia, Singapore and Thailand," he said. Lack of a surveillance fleet was another factor contributing to the high incidence of illegal fishing, he said. Aji said there are currently more than 20,000 foreign vessels operating in Indonesian waters, both with and without licenses, "and we only have 20 vessels to patrol them all, and not all of (the patrol boats) are in good condition". Last year, Indonesia and Australia joined forces to patrol the Arafura Sea, Aji said. According to the ministry, the maritime and fishery sectors have great potential to contribute to the country's economy. Gross domestic product from the fishery sector increased by 18 percent in 2006, and generated US$2.08 billion in foreign exchange revenue, with exports reaching 1.02 million tons in 2006. © The Jakarta Post.
India-Malaysia defence and economic cooperation
Kuala Lumpur - India will train Malaysian pilots to fly Russian fighter jets as part of a pact to upgrade defence cooperation, Indian Defence Minister A.K. Antony said Monday. In talks with Malaysian Defence Minister Najib Razak, they also agreed to hold joint military exercises and strengthen joint efforts to combat regional terrorism. Antony said the Indian air force and private aircraft manufacturer Hindustan Aeronautics Ltd. would train Malaysian pilots and technicians on the operation and maintenance of Russian Sukhoi 30-MKM fighter jets. "As part of the joint efforts of the two sides to intensify our bilateral defence cooperation, the Indian air force ... (will) undertake the training of Royal Malaysian air force pilots and technicians," he said in a statement. Malaysia signed a deal with Russia in 2003 to purchase 18 Sukhoi 30-MKM aircraft. Six of the jets are currently in service, and the pilots have been trained in Russia, according to the defence ministry. Antony, who is on a three-day visit to Malaysia, said that India and Malaysia had a shared interest in countering terrorism and the spread of weapons of mass destruction, and in protecting maritime traffic. In recent years, India and Malaysia have developed a strong bilateral relationship encompassing trade, education, diplomacy and defence. © 2008 The Associated Press.
India, Malaysia up defence cooperation through training and maintenance of high-tech equipment
Kuala Lumpur - Malaysia and India will step up defence cooperation, particularly in the training of crew and the maintenance of Russian Su-30MKM fighter jets, recently acquired by Malaysia. Under the programme, India would provide training to 55 military personnel -- 15 officers and 40 technicians, who are currently in India for a three-month stint till March, deputy prime minister, Datuk Seri Najib Tun Razak, said today. The second phase of the training programme would involve 47 officers and technicians from March till June, he told a joint press conference in the company of visiting Indian defence minister, AK Anthony. Earlier, Anthony, accompanied by a high-level defence delegation, met Najib, who is also the country's defence minister, for talks. Both countries had agreed to bilateral collaboration in defence training when Najib had visited India in June 2006. Najib said following the signing of a protocol between the Malaysian and Indian defence ministries at the Langkawi International Maritime and Aerospace (LIMA) exhibition 2007 last month, the Indian government and the Indian Air Force agreed to send a team to the air force base in Gong Kedak in Terengganu to train Sukhoi pilots and technicians. He said the team comprised of seven officers, (four pilots, two engineering officers, a weapon sensor officer) and 24 other ranks would arrive in the middle of next month. They will be stationed at the airbase for two years, he said. Malaysia bought 18 Sukhoi jet fighters for RM3.42 billion from Russia in 2003, with the first two jets delivered in May last year, and the rest in stages by June this year. The Indian Air Force first deployed the Sukhoi fighter in 2002. Najib also mentioned that Malaysia and India have agreed to cooperate in the deployment and maintenance of Scorpene submarines, which both countries have bought. This matter, he said would be further discussed by the Malaysian and Indian navies. Malaysia's Scorpene submarine, the KD Tunku Abdul Rahman, is due for delivery to the Malaysian navy in January 2009, even as India is due to deploy six Scorpenes by 2011. Najib said Malaysia and India also agreed to have an exchange programme for army trainers between the Army Training Centre (Pulada) and Counter Insurgency Warfare Centre and also to expand other existing training arrangements in the form of short courses. He said the joint committees headed by the secretaries of the defence ministry of the two countries would discuss the matter further. Currently, naval exercises between Malaysia and Indian navies were limited as they were held only when Indian navy ships arrived in Malaysia. On the issue of the security of the Straits of Melaka, Najib said Anthony agreed that the primary responsibility of the straits was with the littoral states and that India respected the principle. Anthony said he held in-depth discussions on a wide range of bilateral, regional and international issues of mutual interests. He also said that he had invited minister Najib to India. © 1999-2007 The Information Company Private Limited.
Indians angry as lines raise rates
Mumbai - India Pakistan Bangladesh Ceylon Conferences (IPBCC), the oldest shipping conference, has proposed rate restorations for 2008. This is despite several appeals by Competition Commission of India (CCI) to shipping lines to stop operating in cartels. In a notice to trade, IPBCC last week said the first revision, to be effective from 1 February, will entail an increase of $200 per TEU westbound from the subcontinent to Europe. There would be further increases from April and June with the relevant quanta to be advised in due course. IPBCC claimed its member lines have continued to face considerable increases in costs as a result of delays and congestion. In addition, as part of the business plan, IPBCC members will keep ancillary tariff items such as special equipment additionals and surcharges under review. CCI's acting chairman Vinod Kumar Dhall had met representatives of liner companies and IPBCC to avert the increases and tackle the perceived strengthening of the the cartel. IPBCC's 18-odd members include the state-owned Shipping Corp of India and such majors as Maersk, CMA CGM, K-Line, UASC, MISC and Hapag-Lloyd. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Indonesian Navy foils pirate hijack
Jakarta - A recent attempt by pirates to hijack a barge carrying crude oil was foiled when an Indonesian naval patrol boat intercepted their shipment in the waters around Bilang-Bilangan island, off East Kalimantan. Because of possible security concerns, details of the 23 December incident were only released five days later. According to Antara News Agency the barge, Makmur Abadi-V, which was being towed by the tug Makmur Abadi-I, was carrying 4,078 tonnes of crude oil when it was ambushed by a seven-man pirate force in a speed-boat led by a man identified as Rebaldo. The pirates reportedly overpowered the skipper and crews of the vessels and locked them in a cabin; before repainting and renaming their commandeered vessels to avoid detection. The Indonesian Navy’s Eastern Fleet Command’s spokesman, Tony Syaiful, said prompt action by its patrol craft defeated the pirates’ ‘mission= 92. “The Navy's patrol boat, KRI Sutedi Senaputera-878, frustrated the action by the seven pirates on Sunday in waters near Bilang-Bilangan island, off the East Kalimantan coast,” he told Antara. The pirates, who are now in custody in Surabaya, are expected to be tried soon. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Indonesia tackles human error
Jakarta Indonesia’s Department of Transportation (DOT) blames human error for half the country’s maritime mishaps last year. Of the 79 ship accidents in 2007 that killed 558 people, 54 cases were reportedly caused by people either lacking the training to man vessels or simply being uncertified for the task at hand. However, DOT spokesperson Umar Aris qualified those findings by saying that many ships had poor navigational equipment or were poorly designed. Another factor is the lack of proper port control leading to frequent instances of overcrowded vessels allowed to embark. In extreme cases, the dearth of supervisors translates into “no control at all”, in Indonesia’s myriad ports. Aris said that Indonesia is currently embarking on a campaign aimed at raising public awareness of “improving on the deficiencies of the past”. The campaign will mean tighter supervision of vessels and ports. “All ships will have to activate radio monitoring systems that will enable shore-based control,” he added. DOT is to also to increase surveillance and patrols in accident-prone zones. © Lloyd's Register - Fairplay Limited 1999 - 2006.
MARPOL ‘not being taken seriously’
London - Ship managers are acting complacently despite facing the threat of fines and imprisonment under MARPOL, according to the Standard P&I Club. “Any legislation that can result in multi-million dollar fines, time-consuming court-ordered environmental compliance plans and extensive jail time for crew members deserves to be taken seriously,” Standard Club claims director Brian Glover wrote in a special bulletin to all its customers. Yet Glover claims that many operators are ignoring the risks, either because they see the issue as a US-only problem or – despite the decade-old strictures of ISM – they think they can hide behind ignorance of what is happening on their ships. “A ship operator is vicariously liable for the actions of its employees… even if the actions were in direct violation of company policies and instructions,” the bulletin says, adding that EU countries are just as zealous as the US and small infractions are not likely to be ignored – oily water separators being an obvious example. Asian countries are becoming similarly intolerant, as the Hebei Spirit case demonstrates. © Lloyd's Register - Fairplay Limited 1999 - 2006.
MMM to dump Philippine operations
Kuala Lumpur - Publicly listed Malaysia Merchant Marine (MMM) is contemplating ditching its unprofitable operations in the Philippines. The announcement to Malaysian media by executive deputy chairman Datuk Ramesh Rajaratnam is viewed by analysts as a sop to placate shareholders ahead of an Annual General Meeting today. Rajaratnam said, “Disposal is among the plans for the Philippines… if it is disposed, the M$13M will not be there,” he added referring to MMM’s 40% stake in Aviva Pacific Marine Co, which it co-runs with its Philippine partner. The board had decided to get rid of its Philippines contracts after an assessment by company executives showed that two out of the three were unprofitable, said Rajaratnam. The constant breakdown of old, single-hull vessels was another factor. He gave few details of present agreements in the Philippines, but his point that "new contracts will be structured differently" betrayed a hint that earlier contracts were not amenable to MMM. Meanwhile, observers are predicting a raucous AGM session today, characterised by what is to be a 'fire and brimstone' debate on issues of dwindling asset value, questionable debts and impairment losses. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Navy role crucial in curbing piracy
London - Piracy incidents worldwide shot up by 10% as attacks rose in Nigeria and Somalia last year, the International Maritime Bureau has recorded. The IMB annual figures for 2007 have been compiled on the basis of incidents recorded by the bureau’s Piracy Reporting Centre in Kuala Lumpur. “Nigeria and Somalia give the greatest cause for concern,” the annual report comments, noting that 35 vessels were boarded with 25 attacks in Lagos alone. There were 11 hijackings in Somalia with 154 hostages taken. Five crew members were killed and three are still reported missing. “The recent intervention of the international community and the coalition naval forces may prove to be the only way forward in controlling the pirates,” IMB Director Capt Pottengal Mukundan has observed. A total of 263 attacks were reported in 2007, though on a positive note incidents in the commercially sensitive Malacca Strait fell for the third successive year. The IMB has applauded the Malacca littoral states – Indonesia, Malaysia and Singapore – for improving co-operation to beat piracy. © Lloyd's Register - Fairplay Limited 1999 - 2006.
PSA records 13% rise in box traffic
Singapore - PSA Singapore Terminals is to add more capacity after reporting a 13% increase in container volume for 2007. A record 27.1M TEU were handled over the year, and the success has been attributed to strong growth in Asia-Europe trade. PSA has planned 20M TEU of extra capacity over the next 10 years, with around 80% being used for transhipment. New berths have are also being equipped with super post-Panamaz quay cranes to ensure quick and smooth turnaround for ships. PSA has recently taken delivery of five such cranes, and more will be added this year. "PSA is aggressively expanding its capacity at Pasir Panjang Terminal with new berths and new cranes being rolled out progressively from 2008 to 2009," said a spokesman for the container operator. Facilities at Brani, Keppel and Tanjong Pagar terminals are also being upgraded. © Lloyd's Register - Fairplay Limited 1999 - 2006.
PTP volumes rise 14%
Johor Bahru - Port of Tanjung Pelepas, which competes with Singapore for transhipment cargo, has reported a 14.5% growth in container volumes for 2007. PTP handled 5.5M teu and CEO Harun Johari attributed continued strong global trade in particular from Asia to Europe for the strong volumes. Volumes have also been rising due to the on-going re-location of P&O Nedlloyd calls from Singapore to PTP. PONL was acquired by AP Møller-Maersk in 2005 and Maersk Line had shifted to PTP in late 2000 from Singapore after the group had taken a 30% stake in PTP. The other major line to leave Singapore for the new Malaysian facility was Evergreen Marine in 2002. “Global container trade is expected to grow at an average of 8% - 10% annually for the next five years,” noted Johari pointing out that PTP had ample space for expansion to meet the anticipated rise in volumes. The access channel is being deepened further and two new berths are being added besides quay and gantry cranes. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Salvors back emergency guidelines
London - Salvors have welcomed the IMO Guidelines on the Control of Ships in an Emergency. International Salvage Union president Arnold Witte described them as "a significant contribution to casualty management". The guidelines are designed to encourage clearer chains of command in an emergency and fairer treatment of seafarers. "Salvage teams often work in waters controlled by jurisdictions which appear to support the criminalisation of accidents," said Witte. To avoid this, the guidelines promote better communication between states and salvors, so that the parties involved (managers and salvors) are fully aware of their degrees of responsibility, and limitations on their freedom of action. The states that take on the recommendations can ensure that happens. Witte added: “The ISU has long stressed the importance of identifying, at the earliest opportunity, the best environmental option. This can be achieved only by frank disclosure from the company and master. An expert assessment by the salvor, followed by an immediate focus on an effective environmental solution, is the most effective tactic for pollution prevention or mitigation.” Member governments are invited to bring the guidelines to the attention of shipmasters, companies, salvors and other interested parties as they deem appropriate. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Ship prices to rise in 2008
Kuala Lumpur - Ship prices will rise in 2008, said a Citi Investment Research study. Yards are facing capacity constraints due to a large backlog of orders from 2006. “[The] global order book is getting closer to four years and shipbuilders have strengthened their bargaining power again based on strong order books,” it warned. The study said price increases were also due to new IMO ship regulations (such as double-hull tankers); the unexpected increase in bulk carrier rates; a lack of skilled workers and the US dollar’s effect on the price of steel. Meanwhile, Korea’s continued ability to monopolise the global shipbuilding industry will continue, with a 38% predicted market share. China’s position is more "fragmented" it said, as its top five yards have only captured only 55% of its shipbuilding capacity, compared to the top five Korean yards at 81%.
Slow reporting hampers piracy fight
Kuala Lumpur - In a reprise of Fairplay’s report (Danger alerts deter pirates, 6 December 2007) Malaysia’s Navy chief has also weighed into the importance of prompt reporting of pirate attacks. “It is frustrating that pirate attacks are not relayed immediately as it hampers initiatives to check piracy problems in the Straits of Malacca,” Admiral Tan Sri Ramlan Mohammad Ali told a conference titled “Maintaining and Enhancing Security in the Straits of Malacca". He lamented the fact that the Navy only learns of pirate attacks several days after an incident, or when the ship has reached its next port of call. Mohammad Ali’s address at the conference ranged a gamut of issues from the consequences of a closure of the Straits to the importance of vessel protection and to the sovereignty of the waterway. On the latter, he said Malaysia’s refusal of US offers to patrol the straits arose mainly from its gratuitous nature. Apart from a mechanism permitting the Singapore and Malaysian Navy to ‘exchange information and intelligence’, he alluded to the ‘Eyes-in-the-Sky’ initiative which co-ordinates South-East Asian countries for joint surveillance operations in the Malacca Straits. © Lloyd's Register - Fairplay Limited 1999 - 2006.
Special panel to ease relations
Putrajaya - A group of eminent persons – consisting of seven members each from Malaysia and Indonesia – will be set up to watch out for any issue that may lead to snags in relations between the two countries. In announcing this after a two-hour meeting with visiting Indonesian President Susilo Bambang Yudhoyono here Friday, Prime Minister Datuk Seri Abdullah Ahmad Badawi said the group would comprise representatives from different sectors such as economy, religion and culture. “I welcome this proposal from the President. We think it is important to have this group. They can meet anytime they want and their duty is to keep their surveillance or eye out for current events and development in ties that may bring about the deterioration of ties between the two countries. “They can bring these issues for discussion with their respective groups or sectors and find a resolution. They can also give their opinions, which can then be channelled to the administration in both countries so decisions can be made on the way to resolve any complication or whether something should be implemented,” he said. Recent events – such as demonstrations by Indonesians against the use of certain folk songs and dances by the Malaysian government and reports of abused maids and workers – had led to tensions between the two countries. Other outstanding issues between Malaysia and Indonesia were border disputes, particularly over the Ambalat area in the Sulawesi Sea and the perennial problem of haze. Abdullah also announcement the establishment of an “inter-media” dialogue between the Malaysian and Indonesian press to ensure a flow of accurate information as well as to prevent over-sensationalism of certain stories and a new mechanism for the handling of Indonesian workers in the country. “Both Malaysia and Indonesia have similarities but we also operate in different political and social orders. Our policies are different. We don’t want these differences to lead to problems in relations. “The press from Malaysia and Indonesia should meet on a regular basis – like every quarter – and in their meetings, they can discuss whatever matters reported or raised. With this background of accurate information and understanding of policies, the two sides can ensure there is no misreporting or sensation and more moderate reports that won’t lead to negative reactions from the public,” he said. The Prime Minister said he had also briefed Susilo about the status of the cases involving Nirmala Bonat and karate referee Donald Luther Kolobita. Abdullah also said that cultural interaction between the people in Malaysia and Indonesia were intense, even before Independence, with those having settled in the former country bringing their cooking, dances and music over. “This is how close we are and this is something we admit to,” he said. Abdullah said the mechanism for Indonesian workers was aimed at controlling and reducing the number of those coming without valid documents, which would also prevent them from receiving aid and legal assistance when they encounter problems. “We don’t discriminate against Indonesian workers,” he asserted, adding that the Indonesian embassy would be told if any of their national was being tried in court. Susilo said Indonesia wanted the mechanism or the policy to be in place for its workers within the next five years. “The mechanism at present is good but we hope to further strengthen it so that our workers can bring benefit to Malaysia. We are satisfied with the treatment and protection our workers received, and the prominence given to their cases,” he said, Among the other issues raised during the meeting included illegal logging, enforcement against traffickers, cooperation in defence, security in the Straits of Malacca and deforestation. On border disputes with Malaysia, Susilo said the negotiating teams had been asked to intensify efforts and would be given a stronger mandate so that conclusions could be found in the quickest time possible. © 1995-2008 Star Publications (Malaysia) Bhd.
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Bajau Laut learning new fishing tricks Jaswinder Kaur
[Kota Kinabalu will be the venue of a three-day symposium starting on Tuesday to discuss the status and management of coral reefs in Sabah. On the agenda will be the Semporna Islands Darwin Project, an initiative involving local communities in coral reef conservation at the Tun Sakaran Marine Park in eastern Sabah. With 2008 being International Year of the Reef, JASWINDER KAUR explores the the delicate balance between protection of the environment and sustainable use of natural resources by local communities to protect the environment] SEMPORNA has gained worldwide popularity for its calm turquoise waters filled with natural wonders. It is here that conservationists are working with local communities to tell them about alternative livelihoods, now that they live within a marine park. This is by no means an easy task. For centuries the fishermen, in what is now known as the Tun Sakaran Marine Park, have cast their nets to catch sought-after groupers for the live fish trade. They sell them for a few ringgit to traders in Semporna town. Others have been actively involved in "fish blasting", destroying reefs in the process. Bronzed-skinned fishermen have also for generations dived into the waters to collect clams or harvest colourful corals which become decorative pieces on shelves. But things are now changing. Under the three-year Semporna Islands Darwin Project (SIDP), the 2,000 villagers in the area are being exposed to concepts once alien to them such as "no-take zones". They are also introducing them to seaweed farming and clam ranching as new sources of income. The project is managed by the British-based Marine Conservation Society, in collaboration with Sabah Parks. Their work is aided by a grant from the Darwin Initiative through funding from several international bodies, including the British Department for Environment, Food and Rural Affairs. Project leader Dr Elizabeth Wood, a scientist attached to the Marine Conservation Society, says more than half of villagers met were unaware they were living inside the boundaries of a marine park gazetted four years ago. "We informed them about certain responsibilities now that they are living within a park. "We gave them video presentations and hung up posters to tell them about the park and laws that they have to follow. "To make it interesting, we ran competitions at each village and they used this as a forum to ask questions about the park," Wood says of the project named "Community Action for Sustainable Use and Conservation of Coral Reefs". "We asked children to guess the number of species that live in the park and did jigsaw puzzles with them." Concerns raised by villagers, such as loss of traditional fishing grounds and restrictions on fishing methods, were also addressed through meetings. With only a year left to complete the project, Wood says time is fast running out but the staff had managed to conduct many community-level discussions and collected socio-economic data to gain information on the families. A crucial part of education efforts has been to drive home the message that fish stocks are fast depleting. "The management challenge is to make sure that they accept the fact that there are some areas they cannot go fishing in and some species that they cannot take," Wood says. "One important regulation under the gazetted park is that there are areas designated as no-take zones -- places that have been badly over-fished and where stocks are really low. "Our aim is to build up the fish stocks. There are plenty of juvenile fish in these areas and it is only a matter of letting them breed. "We are still waiting for the legislation on this to be ratified by the Sabah Parks' board of trustees. Once it is done, no one will be allowed to fish in these places. "It has been shown in other places that fish can grow and breed in a matter of five to six years if there is no fishing at all. Look at Sipadan; there are big fish there because it is a protected area. "To give our plan a kick-start, we have released some Napoleon wrasse and some mouse groupers we obtained from the hatchery at the Sabah Fisheries Department. "At the moment, the population of mouse grouper in the park is very low as it is a high-value fish which fetches up to RM160 a kilogramme in the live fish trade. "If we can build up stocks at protected reefs, hopefully, we will see a spill-out in areas outside the park and this will help fishermen in the long run. "Right now, there are too many people chasing too few fish, too few clams and too few sea cucumbers." The marine park is 350 square kilometres in size and comprises eight islands, the largest one being Bodgaya. Close to half, or 163 square kilometres, is covered with reefs and studies have shown that reefs in the park extend from sea level to about 20 metres in depth in the western side and more than 50 metres deep in the eastern part. The site is a global marine biodiversity hotspot as it has species diversity higher than any other site in Malaysia. There are a recorded 544 coral reef fish, 255 hard coral and 70 soft coral species. It is also home to the hawksbill and the green turtle. Wood is working on getting seaweed farming and clam ranching started for the benefit of villagers. "If communities start farming seaweed, they will have a reasonable income, probably even slightly better than what they earn from fishing. "We have trained 40 families and they are really enthusiastic. We are waiting for seedlings to pass to them. "Seaweed can be harvested every two months. "We are also developing other forms of aquaculture such as giant clam and abalone farming and we are running trials at our hatchery in Pulau Bohey Dulang now. "We will supply local communities with seeds to farm these species within their own areas. "The Bajau Laut people are skilled at making large mats which they use at home. Maybe they can weave small replicas which tourists can take home," Wood says. Another important component of work under SIDP is reef monitoring. Wood says the problem with fish blasting is that corals tend to collapse, affecting their ability to recover. "Some species of corals can regenerate themselves but some take a long time to grow."One of the results obtained from monitoring is that "live" hard corals within the park is about 40 to 50 per cent. Boulder corals found in this park take 200 to 300 years to reach their full size. "Some other corals, the big tables that you find in shallow areas, can grow quite quickly, at a rate of about 20 to 30 centimetres a year -- 20 times faster than boulder corals," Wood says. Planting corals is not feasible for long stretches of reef, Wood says. © 2008 NST Online.
Business activities needed in outlying islands
Kupang, East Nusa Tenggara (Indonesia) - Business activities are needed in Indonesia's outlying islands in addition to military deployment, international law expert Wilhelmus Wetan Songa said on Wednesday. "Businesspeople should be directed to manage the outlying islands although we already deploy soldiers to safeguard the island," he said. Indonesia submitted in December a list of 92 outlying islands to the United Nations for verification. East Nusa Tenggara province has a number of outlying islands -- including Batek Island in Kupang regency, Mangudu and Salura Islands in East Sumba regency and Dana Island in Rote Ndao regency -- that border Australia and East Timor. Army and Marine soldier have been deployed on these islands. Wilhelmus of the Cendana University, however, such deployment was not enough. "Securing the territory is the state's obligation but must also comes with real activities on those islands," he said. "Just like what Malaysia did by managing the Sipadan and Ligitan Islands although they are on Indonesian territory." Wilhelmus also said it was important to take into account financial benefits for people living on the islands or the surrounding regions. "Simply deploying soldiers on the outlying islands will not become an effective tool without real actions to make those islands our own backyard," he said. © Antara © The Jakarta Post.com.
Consultant to study sustainability of Brunei's marine fisheries by Zasika Musdi
Bandar Seri Begawan - A consultant from New South Wales, Australia, will be working closely with the Department of Fisheries, Ministry of Industry and Primary Resources, to study the sustainability of Brunei Darussalam's marine fisheries. Professor Martin Tsamenyi, who is the Director of the Australian National Centre for Ocean Resources and Security at the University of Wollongong, signed an agreement with the Department of Fisheries in October 2007. He will be conducting two studies namely "The National Strategic Plan for Monitoring, Control and Surveillance (MCS) activities pertaining to the Brunei Darussalam's fishing areas" and "The Brunei Darussalam's National Plan of Action on promoting responsible fishing practices including combating Illegal, Unregulated and Unreported (IUU) fishing activities within Brunei's exclusive economic zones". While in Brunei, Professor Tsamenyi will be holding talks regarding draft reports with the Department of Fisheries and other relevant stakeholders, including the Ministry of Foreign Affairs and Trade, Royal Brunei Navy, Royal Brunei Air Force, Royal Brunei Police Force, Marine Department, Ports Department, Legal Department, Internal Security Department and BSP Sdn Bhd. Professor Tsamenyi's reports are expected to be finalised by the end of February 2008. The use of satellite technology to support effective monitoring, control and surveillance of fisheries is also being discussed. Recently, Collette Localisation Satellite (CLS Argos), a subsidiary of the French Space Agency, demonstrated the use of satellite tracking technology and other related maritime security applications. Meanwhile, Professor Tsamenyi recently paid a courtesy call on the Minister of Industry and Primary Resources, Pehin Dato Dr Awang Hj Ahmad bin Hj Jumat. The Director of Fisheries, Dayang Hjh Hasnah Ibrahim, and other senior officers were among those who attended the meeting. © 1999-2005 Brudirect.com.
Conserving Sabah’s treasure trove by Yong Yen Nie
In February last year, the governments of Brunei, Indonesia and Malaysia signed a declaration to conserve the “Heart of Borneo” — an area covering two million hectares of equatorial rainforests that is one of the world’s most important centres of biological diversity. To give an idea of how rich it is, the area in question is home to some 220 species of mammals and 620 species of birds. According to the WWF-Malaysia, 35% of 15,000 plant species there can be found only in the Heart of Borneo. And although Borneo has a long history of research and exploration, such as in the world-renowned Danum Valley, there are still thousands of plants and animal species yet to be discovered. Sabah’s Kinabatangan River floodplain is also the largest floodplain in Malaysia, and home to many endangered species, including the proboscis monkey and the orang utan. The Kinabatangan acts as a water-filtering system for the environment as well as a water catchment area for Sabah’s eastern sub-region. Surrounded by the South China Sea to the northwest, the Sulu Sea to the northeast and the Sulawesi Sea to the southeast, Sabah is also rich in marine life. For instance, Darvel Bay has been described as the “cradle of coral evolution” as scientific studies have proved the location to be the genesis of coral reefs running through to the Great Barrier Reef of Australia. The state has over 497 islands, including Sipadan, Malaysia’s only oceanic island described by the late Jacques Cousteau, the world-renowned oceanographer, as “an untouched piece of art” when he visited it in the Seventies. However, this treasure trove of biodiversity would be put at risk if development were pursued without putting in place strategies to conserve and protect the environment. For instance, in 2006, it was reported that a barge, laden with construction equipment used to build amenities in Sipadan Island, had scraped off 372sq m of corals at the famous Drop-off Point. Sabah’s key conservation challenges under the Sabah Development blueprint are the sustainable harvesting of natural resources (especially timber); the lack of an integrated approach to conservation; habitat fragmentation; inadequate wastewater treatment systems; pollution from industries; and the absence of statutory regulation on good agricultural practices. Over the last three decades, the volume of logs extracted from the state’s natural forests has been far greater than the natural timber regeneration rate. There are also concerns that oil palm plantations located too close to river systems and road sides, without proper provision for riparian and buffer zones, may cause riverbank erosion and water pollution from fertilisers and herbicides. Apart from logging and conversion of former forest to alternative land uses like agriculture, the fragmentation of forest habitat into small patches threatens biodiversity and the survival of large animals. The larger the forest, the more species it holds and if large areas of forest are given over to other land uses, it is a matter of time before large animals, rare species and those sensitive to change will drift towards eventual extinction. Supporting ongoingconservation projects: While Sabah has various conservation programmes anchored by government agencies such as the Forestry Department and Sabah Parks, local district councils and NGOs, it needs to bring these efforts together and turn them into an integrated approach towards environmental monitoring, conservation and enforcement. This would ensure better co-ordination, systematic planning and better utilisation of conservation resources. The SDC master plan will support these efforts by incorporating them into its implementation over the next 18 years. Among the conservation projects in place is the “Heart of Borneo” initiative, which seeks to manage and conserve the second largest contiguous forest landscape in the world. The efforts include leveraging on trans-boundary collaboration of Bornean governments, engaging local interests in short-and long-term planning and securing sustainable and long-term finance. In 2003, Yayasan Sabah voluntarily designated the Imbak Canyon as a Conservation Area for research purposes, education and training, besides the Maliau Basin and Danum Valley Conservation Area. Additionally, the Department of Irrigation and Drainage (Sabah) is developing an Integrated River Basin Management Plan for the Kinabatangan River Basin with the assistance of WWF, which seeks to resolve land use and water-related issues in a sustainable manner. Sabah is also one of the leading states in the country in carbon sequestration, with a number of international collaboration efforts for carbon trading and sequestration projects which have been carried out to date. The state is also aggressively tapping biotechnology under the Sabah Bio-X Programme that will open new possibilities in conserving its biodiversity, through new developments in water treatment, renewable energy and tissue culture. Corporate sector involvement: The corporate sector plays an important role in cooperating with the Sabah government and various NGOs to protect and conserve the state’s natural resources. According to WWF-Malaysia “Corridor of Life” project manager Darrel Webber, there are hundreds of oil palm plantations in the Kinabatangan floodplain, making it one of the densest areas of palm oil production. The sustainably developed corridor is a WWF-Malaysia initiative along the Kinabatangan that connects the Heart of Borneo with the Sulu-Sulawesi marine eco-region. Because of the concentration of oil palm cultivation in the Kinabatangan, Webber says “it is an opportunity for corporations to be involved in sustainable development and conservation projects to ensure that such development is not only good for profits, but also to the people and planet”. One corporation that is stepping up to play its role in conservation is oil palm company Asiatic Development Bhd, which has signed a Memorandum of Understanding (MoU) with WWF to help conserve the Corridor of Life through reforestation in the floodplain. “We want to do our bit, (as) we view our plantation as a long-term investment,” says its chief operating officer Yong Chee Kong. The company has dedicated 86ha of land to rehabilitate forests and restore degraded riverbanks. Asiatic Development also has two sanctuaries spanning 175ha which serve as a reserve for wildlife, including orang utans and various species of birds. Yong says the sanctuaries have existed for the past 10 years, providing the wildlife more space to roam. For Asiatic Development, getting involved in conservation projects is nothing new. In 1999, it collaborated with WWF-Malaysia and Sabah Wildlife Department in the “Partners for Wetlands” programme, in which it helped rehabilitate riparian reserves along the Kinabatangan River and Tenangang Besar River. Conglomerate Sime Darby Bhd is also heeding the call to support Sabah’s conservation efforts, and is expected to sign two MoUs this week to sponsor the rehabilitation of orang utans in the Ulu Segama-Malua forests region. It was earlier reported that at least RM200 million would be needed to fully restore the heavily logged forests in Sabah’s east coast, especially in rehabilitating the region’s orang utan population numbering some 3,000. Sabah’s delicate ecological systems and the need to conserve them have not only garnered the support of local corporations, but attracted the attention of foreign multinational corporations. Furniture retailer Ikea Group’s Sow-A-Seed Foundation has partnered the Sabah Foundation in restoring 18,500ha of forests depleted by logging. Under the initiative, Ikea provides US$750,000 annually to rehabilitate trees in the Kalabakan Forest Reserve near Tawau district, besides supporting research work and providing facilities in the Maliau Basin. The heart of Ikea’s activities is in Luasong, located in the Kalabakan Forest Reserve, where seeds are germinated from some 300,000 tree specimens at the project’s nursery and seedlings, to nurture self-regenerating forests. Through Ikea’s joint efforts with Sabah Foundation, some 7,000ha of burnt forest — an area the size of 11,000 football pitches — have been replanted with over a million trees. It is hoped that these efforts will encourage more corporations to come forward and participate in bringing sustainable development to Sabah, while preserving its natural heritage. © The Edge Communications Sdn Bhd.
Container rates ‘must rise’
New York - Container rates in the transpacific trade must rise in 2008, or tonnage recently pulled from the route will not be replaced, warned APL chief executive Ron Widdows yesterday. Speaking to the Container Transport Investment Conference in New York, he said: “Supply and demand is not really relevant in 2008, and if the US economy is not faring well, that will not be relevant. There is a very different dynamic taking place now,” argued Widdows, who is also chairman of the Transpacific Stabilisation Agreement. “The bunker surcharge will be significantly higher going forward, because it must be higher. If rates do not come up to the required level, then the ships simply aren’t coming back.” Some ships would be placed in the intra-Asia market and others in Asia-to-Europe, instead of returning to the transpacific, which has been a money-loser for carriers in 2006-07. But Widdows is optimistic that shippers will pay up, noting that carriers have already convinced some customers to pay higher bunker surcharges on a voluntary basis. "Bunker costs are bringing about a fundamental change in the way we do business,” he explained. The amount of carriers’ uncovered bunker costs in the past year within the transpacific trade alone was “enormous”, he added.
Greece gives $1m for straits
Projects aimed at improving safety, security and environmental protection in the Straits of Malacca and Singapore have been given a boost by the news that Greece is to donate US$1m to help fund them. The International Maritime Organisation says the money will be used to support efforts by Indonesia, Malaysia and Singapore to implement a range of projects developed and agreed during three meetings convened by IMO in cooperation with the three littoral states over the past three years. A meeting in Singapore last year endorsed a new framework called the “Co-operative Mechanism”, whereby the littoral states can work with the international maritime community to enhance navigational safety, security and environmental protection in the straits, which carry some 30 per cent of all seaborne trade. © 2008 The Sea 191 (Jan/Feb).
Indonesian agree to install seven radars from U.S.in Makassar Strait
The Indonesian government has agreed to install seven radars to be provided by the United States in the Makassar Strait to support security maintenance efforts in the country's second main sea-lane, a minister said on Tuesday. "The purpose of installing the seven radars is to support maritime defense and security in the South East Asian region," Defense Minister Juwono Sudarsono was quoted by Antara News Agency saying. He said the U.S. government was committed to helping Indonesia to build its capacity to secure its waters by among other things providing the surveillance radars. "The proposal to install the surveillance radars in the Makassar Strait was filed in 2006 but it will only be implemented in stages starting in 2008," he said. Juwono said the main function of the seven radars in the Makassar Strait would be that of preventing acts of terror at sea, which accords with ASEAN's joint commitment on maritime defense and security in the ASEAN region. The U.S. had previously also given five surveillance radars which were set up along the Malacca Strait to support security in the world's busiest sea lane. The five radars were now functioning as part of the Integrated Maritime Surveillance System (IMSS) in the Malacca Strait where security was being maintained jointly by Indonesia, Malaysia and Singapore through a coordinated patrol scheme launched in July, 2004. The three nations' coordinated patrols had resulted in a 70-percent decrease in criminal activity in the Malacca Strait, according to Juwono. © People's Daily Online.
Japan grants aid to Malaysia for maritime security edited by Du Guodong
Kuala Lumpur - Japan has approved a first grant aid of 473 million yen (4.4 million U.S. dollars) to Malaysia for the improvement of equipment for maritime security enhancement in Malaysian territorial waters. Malaysian Foreign Affairs Ministry Secretary-General Rastam Mohd Isa and Japanese Ambassador to Malaysia Masahiko Horie signed and exchanged the Notes For Grant Aid in Putrajaya, the administrative center of Malaysia on Friday, to upgrade the Malaysian Sea Surveillance System (MSSS) for the Malaysia Maritime Enforcement Agency (MMEA) and improve the overall sea surveillancein the Strait of Malacca and the Malaysian territorial waters. The Straits of Malacca was one of the most important shipping lanes from the economic and strategic perspectives, carrying one-third of the world's sea trade, Masahiko said. Globalization and more specifically the entry of China, India and other emerging economies into global trade systems would result in the continued growth of maritime trade and add further significance to maritime security in the Straits of Malacca, he said. "Maritime security is an obvious and vital element for Japan's international security and critical in its relations with key partners, particularly the littoral states in the Straits of Malacca," the national news agency Bernama quoted Masahiko as saying. Japan took note that the high expectation of international users and increased volume of maritime traffic had placed considerable demands and a financial burden on the Malaysian government, he said. "As such, Japan remains committed in providing impetus for a fundamental transformation of Malaysia's maritime security through the development and improvement of essential capabilities," he said. Maritime security enforcement agencies had a key role in protecting this vital sea lane to prevent disruption to the global supply chain, Masahiko said. However, the effective responses against such threats would require cross-agency, cross boundary and cross-territorial cooperation and effort, he added. "The Japanese government together with other organizations would like to continue our support to the Malaysian government in its efforts to ensure the safe navigation of the seas, to protect the marine resources and to advance prosperity and freedom in the Straits of Malacca," he said. Meanwhile, Rastam said the present grant from Japan would be used for the improvement of the existing Malaysian Sea Surveillance System. "This is expected to further enhance maritime security in the Straits of Malacca, which is in tandem with the decision of the government of Malaysia in 2006, to upgrade the Malaysian Sea Surveillance System after more than 10 years of its inception. The upgrading program, includes the installation of a Radio Direction Finder (RDF) System, and Electro-optronics System (laser camera) on Malaysia's remote sensor sites." The RDF was capable of providing vital information to improve safety measures relating to traffic, search and rescue operations, as well as piracy and smugglers' communication detection, and other related illegal activities, Rastam said. Meanwhile, the Electro-optronics System allows long-range visual surveillance both day and night. © Xinhua News Agency.
Malacca fund set for April debut
Tokyo - The Nippon Foundation has announced that its proposed fund for navigational safety in the Malacca and Singapore straits is to commence from April. The charitable Foundation – which is the main conduit for Japanese funding for international maritime safety projects – has over the past 20 years given more than $125M to enhance safety, security and environmental protection in the Straits of Malacca and Singapore in the form of buoys, lights, patrol vessels and support costs. Representatives from the littoral state governments of Malaysia, Singapore and Indonesia met the Foundation in Tokyo earlier this week to finalise details of the fund’s operation. Malaysia will be establishing a secretariat for the Aids to Navigation Fund and the Nippon Foundation has said that it is prepared to contribute up to a third of the cost of the project for the first five years. Voluntary contributions to the fund will be invited from the owners and operators of vessels trading through the straits to gradually reduce the burden of costs covered by Japan and the littoral states. ©Lloyd's Register - Fairplay Limited 1999 - 2006.
Malacca Straits security boosted with RM14.6 million grant by Deborah Loh
Putrajaya - Japan has given Malaysia a grant of 473 million yen (RM14.6 million) to upgrade equipment for maritime security along the Straits of Malacca and other territorial waters. The grant covers installation of a radio direction finder (RDF) to improve safety measures for traffic, search and rescue operations, and interception of communications by pirates and smugglers. It also includes electro-optronics system or laser cameras to help with long-range visual surveillance during the day and night. The equipment upgrades will be applied to the Malaysia Sea Surveillance System, which the government started in 1996 to ensure navigation safety, environmental protection and maritime security in its waters. Foreign Ministry secretary-general Tan Sri Rastam Ali and Ambassador of Japan to Malaysia Masahiko Horie signed and exchanged documents on the grant yesterday. Rastam said Malaysia as a littoral state, had an important responsibility to ensure security in the Straits of Malacca which provides passage to one-third of the world’s sea traffic and trade, and is a gateway to China and India. Thanking Japan, Rastam said the country had been consistently providing bilateral aid in various forms under its Official Development Assistance for the last 40 years. Horie said that Japan would remain committed to helping improve Malaysia’s maritime security. “We take note that the high expectations of international users and increased volume of maritime traffic has placed considerable demand and financial burden on Malaysia,” Horie said. Malaysia and Japan have long had exchanges in maritime security programmes through various platforms of cooperation. © 2008 NST Online.
Malacca Strait user fund to be set up by Marcus Hand
After years of negotiations, a user-financed Aids to Navigation Fund for the Malacca and Singapore Straits will be set up in April, with Malaysia hosting the first secretariat. The fund will see both user states and shipping industry bodies contributing to the maintenance of 51 aids to navigation in one of the world’s busiest waterways. A meeting of the littoral states of Singapore, Malaysia and Indonesia and the key industry benefactor, Nippon Foundation, held in Tokyo yesterday agreed to setting up the fund from April with a secretariat based in Malaysia. The meeting was the first held under the cooperative mechanism for the international funding of navigational safety projects in the straits. It was heralded as a historic breakthrough when it was agreed at the third International Maritime Organization sponsored meeting on the issue held in Singapore last September. The Aids to Navigation Fund was one of six projects under the framework. It marks the first time user states, apart from Japan, and the shipping industry itself, will be paying for the upkeep and replacement of navigational aids in busy waterway. Malaysia will host the secretariat for the first three years. The meeting unanimously elected Abdullah Yusoff Basiron, under-secretary, maritime division of the Ministry of Transport Malaysia, as the chairman of the fund. “Since Malaysia has offered to be the first host of the Aids to Navigation Fund and its secretariat, Malaysia will play an active role in the starting up and the establishment of the Fund. This will include formalising the Fund as a legal entity under Malaysian law and setting up the secretariat to manage the day-to-day work and organising the meetings of the committee of the fund,” the Nippon Foundation said. Preparatory work to set up the fund will take place over the next three months, with the first fund committee meeting taking place in April. © 2008 Informa plc.
Malaysia, Thai sea exercise in April by Bernard See
Penang - More than 300 Malaysian marine police and Thai navy personnel will be taking part in this year's joint sea exercise (Seaex Thamal) in April. It will be the 52nd exercise by the neighbouring countries. Northern region marine police chief Asst Comm Zainul Abidin Hasan said information sharing on ways to prevent encroachment and sea robbery would be discussed during the week-long exercise. "The exercise is also aimed at strengthening ties between both countries," he told reporters after a courtesy visit by Thai Navy deputy commander of Songkhla Laksamana Muda Thongchai Jaiyen to the marine base in Batu Uban on Tuesday. Thongchai said the exercise held over the years had benefited the sea authorities of the two countries as ideas were exchanged freely. This year's exercise will start in Langkawi and end in Phuket. The Malaysian Maritime Enforcement Agency (APMM) will be participating for the first time. © 1995-2008 Star Publications (Malaysia) Bhd.
Malaysia's MISC in $980 mln reverse bid for Ramunia by Mark Bendeich and Valerie Lee
Kuala Lumpur - Malaysian shipper MISC Bhd (MISC.KL: Quote, Profile, Research) has made a 3.2 billion ringgit ($979 million) takeover bid for oil-services firm Ramunia Holdings (RAMU.KL: Quote, Profile, Research), in line with its aim to develop a regional business building oil rigs. Ramunia revealed the offer, a reverse takeover that would see the smaller firm issue shares worth well in excess of its current market value to MISC in return for MISC's unlisted ship-building unit, Malaysia Marine and Heavy Engineering, on Mondat. "I think this is an opportunity for MISC to list its shipyard unit," said Punkaj Kumar, chief investment officer for Kurnia Insurans (Malaysia), which has shares in MISC. "It helps MISC unlock the hidden value in its own shipyard." Malaysia Marine and Heavy Engineering focuses on building oil rigs, converting ships and repairing LNG tankers. Ramunia specialises in making offshore oil-and-gas rigs. Both firms have shipyards in southern Johor state, which Malaysia wants to develop as a regional oil-services hub. The MISC offer is due to lapse 0900 GMT on Monday. "The board will review and consider the offer and further announcements in relation to the offer will be made in due course," Ramunia said in a statement. Ramunia shares last traded at 1.21 ringgit per share, valuing the company at 675 million ringgit. The stock had been suspended on Friday pending the announcement. MISC stock was also halted from trade on Monday. Shares in the firm, controlled by unlisted state oil company Petronas, last traded at 9.65 ringgit, valuing it at 35.9 billion ringgit. © Reuters 2008.
MISC abandons shipyard for offshore
Kuala Lumpur - One of the world’s largest LNG operators has told the local bourse that it is suspending the trading of its shares. Malaysia International Shipping Corp’s abrupt move follows another seismic development where offshore oil equipment supplier Ramunia told the bourse of MISC’s offer – through its unit MSE Holdings – to exchange its entire stake in Malaysia Marine and Heavy Engineering (MMHE) for Ramunia’s shares for an estimated price of RM3.2bn ($970M). A Ramunia spokesman told Fairplay that the move does “create good synergy as both companies are known to compete for the same projects”, but observers are worried because MMHE is where MISC regularly repairs its LNG vessels. The yard has increasingly shifted its focus to cater to the oil and gas sector, serving the needs of MISC parent Petronas. Malaysia’s largest shipping company is also the world’s leading LNG operator and MMHE’s Johor yard has been used as a repair base for its gas fleet. The statement said any sales agreement is only binding on the consent of both contracting parties. Both parties, the statement went on, have till the end of today to formalise the contract, failing which “the offer shall lapse and we [MSE Holdings] will be free to withdraw from the negotiations= 4. Ramunia is principally involved in fabrication of offshore oil and gas related structures for major oil players. © Lloyd's Register - Fairplay Limited 1999 - 2006.
MISC in reverse takeover bid for Ramunia by Marcus Hand
MISC has made a RM3.2bn ($974m) reverse takeover bid for Malaysian offshore fabrication yard Ramunia Holdings. MISC has offered to sell its shipyard unit Malaysia Marine and Heavy Engineering to Ramunia, in exchange for new Ramunia shares far in excess of the current market value. Bursa Malaysia-listed Ramunia said that MISC unit MSE Holdings had offered to sell MMHE for new Ramunia ordinary and irredeemable preference shares worth RM3.2bn. Ramunia shares were trading at RM1.21 prior to their suspension on Friday, valuing the company at RM675m. The offer from MISC closes at 17-00hrs local time today, although the deadline could be extended by the shipowner. The reverse takeover would strengthen MMHE’s presence in the lucrative offshore construction and rigbuilding market, a market segment the MISC unit has been targeting for growth. Ramunia owns Teluk Ramunia Yard, a fabrication facility covering 37 ha in the southeastern tip of Johor, with a capacity to build platforms of up 21,000 tonnes. The move would also effect a backdoor listing for MMHE. Investment analysts have been eyeing a separate listing for the shipyard to unlock its value. MISC has made no comment on the takeover offer although it did suspend its shares from trading on Bursa Malaysia till 17-00 hrs on 23 January “pending an announcement of a transaction which involves another public listed company”. © 2008 Informa plc.
Oil shipments through the Hormuz strait by Michael Richardson
Could a radio operator, whose identity is unknown, cause a war between the United States and energy-rich but radical Iran? Perhaps not. But it now appears that someone -- maybe a prankster -- almost triggered a shoot-out between the two sides earlier this month in the Hormuz strait at the entrance to the Persian Gulf. It could have escalated into a wider conflict with serious global reverberations, particularly for oil-importing countries in Asia. With crude oil currently costing around US$90 per barrel, analysts say a blockage of the strait would cause panic oil buying and make prices shoot much higher until the normal flow could be reestablished and secured. In a report this month on six key world oil transit chokepoints, including the Hormuz strait and the Malacca and Singapore straits, the U.S.' Energy Information Administration noted that around half the world's oil was moved by tankers on fixed maritime routes and often had to pass through a number of narrow channels, either straits or canals. "The blockage of a chokepoint can lead to substantial increases in total energy costs," the EIA said. "In addition, chokepoints leave oil tankers vulnerable to theft, terrorist attacks, and political unrest in the form of wars or hostilities and shipping accidents which can lead to disastrous oil spills." The latest incident involving Iranian challenges to U.S. warships as they pass into and out of the Gulf highlights how the relative risks to Asia's vital oil shipments have shifted west from Southeast Asia to the Hormuz strait in the past few years, as tensions between Iran on the one hand and the U.S. and its allies on the other rise over Iranian nuclear ambitions and activities in Iraq while perceived security threats diminish in the Malacca and Singapore straits, another strategic chokepoint on the energy supply line from the Gulf to Northeast Asia by sea. The International Maritime Bureau said recently that closer security cooperation among Indonesia, Malaysia and Singapore had helped cut the reported number of actual and attempted "pirate" attacks and thefts in the waterway to just seven last year, down from 11 in 2006 and 38 in 2004. Shortly before the IMB released its survey, the U.S. military complained that its warships had been harassed by Iranian vessels at least three times since December in the Hormuz strait, the only way into the Gulf by sea. An audio-video tape released by the U.S. military showed that in the latest incident on Jan. 6, five Iranian speedboats dodged around and between a heavily armed cruiser, a destroyer and a frigate for about half an hour as they steamed together through the strait into the Gulf. One of the American warships trained a machine gun on an Iranian boat that came within 200 meters of the U.S. vessel. But the Iranians turned away before the commander gave the order to fire. At the height of tense confrontation, a male voice speaking in heavily accented English on an open frequency was heard to say: "I am coming to you. You will explode after .. minutes." Initially, the Pentagon attributed this voice to Iranians on the five speed boats. Now it says that the source of the threatening commentary cannot be pinpointed. The U.S. Navy Times newspaper suggests that the radio transmission may have come from a local heckler known as the "Filipino Monkey." This person listened in on ship-to-ship traffic and then intervened. U.S. military personnel have reported many similar threatening or insulting radio transmissions in the past but says they do not know whether they come from Iran or somewhere else in the Gulf. Iran has played down the whole affair, accusing Washington of deliberately stoking tensions while President George Bush was in the Middle East trying to rally a regional Arab coalition against Iran. Teheran says the boats were merely trying to identify the U.S. vessels. However, such challenges to the right of unimpeded transit passage by warships through a strait used for international navigation are inherently dangerous. Miscalculation or over-reaction by either side could lead to use of force. Radio exchanges between Iranian and U.S. vessels are common in crowded Gulf shipping lanes, especially near the Hormuz strait. With Iran's regular navy, these exchanges are generally professional. But this is not always the case with Iran's Islamic Revolutionary Guards Corps, which has a well-equipped force including naval elements that specialize in "asymmetric" tactics designed to cause heavy losses more powerful enemies. The U.S. Navy has been aware of the danger of speed boat attacks since al-Qaeda operatives packed a small boat with high explosives and rammed the destroyer USS Cole while it was docked in Yemen in October 2000, killing 17 U.S. sailors, wounding 40 and causing around $250 million in damage to one of the navy's most sophisticated warships. The Asia-Pacific region's stake in Gulf security is high and growing. Each day, an average of 17 million barrels of oil is exported from the Gulf in giant tankers -- 20 percent of oil traded around the world. About 16 percent of these exports go to Europe and only 11 percent to the U.S. By contrast, some two thirds go to Asia, mainly to Japan, China, South Korea and Southeast Asian oil importers. So just because the threat of a disruption to shipping and energy supplies has moved to the Hormuz strait from the Malacca and Singapore straits does not mean the danger is any less acute for Asia. © thejakartapost.com.
Ports where rights are thin on the ground by Michael Grey
It seems a sad fact that the rights of seafarers tend to have less protection than that of landspeople.This observation was made lately by Professor Captain Edgar Gold, who was a shipmaster before becoming a distinguished international lawyer and expert in jurisprudence. He was writing a letter in the Nautical Institute journal Seaways, with some very trenchant views about the unfairness of seafarers arrested by the authorities after drugs had been found aboard their ships. In particular, Professor Gold referred to the case of the master, chief officer and boatswain of the reefer Coral Sea after the quality inspectors in the Greek port of Aegion discovered a consignment of cocaine hidden in one of 27,000 boxes of Ecuadorian bananas landed from the ship. There was no evidence that the three were in any way implicated, but it did not prevent the authorities arresting them and holding them for many months in a high security prison in Athens. To behave in such a fashion is a regrettable reaction. The Greek authorities have arrested entire crews after “torpedoes“ full of drugs have been discovered fastened to the underwater body of a ship. The Venezuelan police reacted the same way when an underwater search revealed drugs affixed to a ship far under the waterline, even though the chances of such a crime being an “inside job” must be very remote. Professor Gold pointed out that the rights of seafarers were not infrequently trampled on in such cases. He suggested that it would be “very doubtful” that the police would arrest and hold a hotel manager or hotel staff if drugs were found on the premises. Seafarers, for some reason, were different. He employed these sad cases to illustrate his contention that the IMO’s guidelines on the fair treatment of seafarers in the event of a maritime accident seem to be ineffective when the incident is not a maritime accident as such. He suggests that the language needs to be strengthened to take in such obvious injustices, which do not exactly encourage people to take up a sea career. Seafarers across the world will agree with him. Seafarers need proper protection from both the behaviour of bullying authorities and the activities of the organised criminals using ships as just one of the conduits for the international shipment of drugs. Customs authorities will tell you that there are few ports in the world which will not be used by the cartels to move their narcotic cargo. But there are some which are worse than others, and the least a crew deserve is that there should be an underwater inspection, and much more on board security in such places. If the fear was terrorism, rather than drug smuggling, there would be no question of stinting on such practical defences which will protect the crew. And a greater sense of fairness would perhaps see developed some sort of international code of practice that would be employed when drugs were found aboard a ship. The behaviour of the authorities in such cases where drugs have been discovered might be thought of as reprehensible, but is symptomatic of a lack of respect for seafarers’ rights that is found in rather too many places. There have always been parts of the world where the authorities are best approached with extreme caution. Today, a whole range of maritime regulation gives the authorities the excuse to board visiting ships, ostensibly to confirm compliance with regulations, but in reality to find faults. And in these ports which delight in harassment, these are merely fresh fields in which unpleasant authorities can make miserable the lives of a ship’s crew. The International Ship and Port Facility Security Code is a classic example of regulation that has made the lives of seafarers less pleasant. They complain that they don’t feel much more secure as a result of its application in many ports where there are just as many thieves around as there ever were. It can also put constraints on shore leave, and provide even more reasons for shore authorities to bother the crew as they check up on the ship’s security plan. It is strange to consider that not that many years ago it was only the ship’s flag state authorities who were empowered to examine their vessels and question their crews. But the authorities will soon be boarding ships to check on the fuel, the atmospheric emissions, and the type of anti-fouling used to keep the barnacles at bay. Stern officials will wish to sample the ballast water, closely inspect the logbooks and even want to inspect the mud adhering to the anchor cable. But few among these authorities ever consider, when they are throwing their weight about, that the ship is the home of the crew. Would they like to be treated in such a fashion where they live? They will say, even apologetically, that they “are just doing their job”. Well, so are the crew and they deserve to be treated in a polite and civilised fashion. © 2008 The Sea 191 (Jan/Feb)
Ramunia accepts MISC offer
Kuala Lumpur - Ramunia Holdings Bhd has accepted MISC Bhd's reverse takeover offer worth RM3.2bil through the issuance of 1.4 billion new shares valued at RM1 each and 3.6 billion 3.7% new irredeemable convertible preference shares. Ramunia agreed to the offer on Monday by executing a conditional sale and purchase of shares agreement with MISC subsidiary MSE Holdings Sdn Bhd. MSE will dispose of its entire equity interest in its subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), to Ramunia. Subsequent to the completion of the acquisition, MSE proposed a renounceable offer for sale of 82 million Ramunia shares to the other entitled shareholders of the latter at an offer price of RM1 per share. MSE would also seek exemption from the obligation to undertake a mandatory general offer for the remaining securities of Ramunia that were not held by MSE. In a filing with Bursa Malaysia yesterday, Ramunia said it planned to increase the authorised share capital to RM5bil from RM855mil and to amend the memorandum and articles of association of the company. Second board-listed Ramunia also intended to transfer the listing of and quotation for its entire enlarged issued and paid-up share capital to the main board. “Barring any unforeseen circumstances, the proposals are estimated to complete within the fourth quarter of 2008,” the company said in a statement. With the allotment and issue of new Ramunia shares, MSE will hold more than 33% equity interest in Ramunia. Ramunia halted trading of its shares on Friday. At its last trading of RM1.21, the company had a market capitalisation of RM674.76mil. Ramunia said the proposed acquisition enabled the company to access MMHE's expertise and share synergistic benefits, which would provide a more efficient, enhanced and productive fabrication facilities in line with its expansion plan to transform the company into a one-stop integration services provider. “In addition, the business of MMHE is expected to provide an impetus to the growth of Ramunia's other businesses, such as crane manufacturing, marine repair and marine conversion, and ship building,” it added. © 1995-2008 Star Publications (Malaysia) Bhd.
Ramunia acquires MMHE in RM3.2 bln reverse takeover deal
Kuala Lumpur - Ramunia Holdings Bhd has agreed to acquire Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) under a RM3.2 billion deal that will see national carrier MISC Bhd become the majority shareholder of Ramunia. RHB Investment Bank Bhd, which is advising Ramunia on the deal, announced today that Ramunia and MSE Holdings Sdn Bhd (MSE) had entered into a conditional sale and purchase agreement for the proposed acquisition. MMHE is a wholly-owned subsidiary of MSE which, in turn, is a wholly-owned subsidiary of MISC. RHB Investment Bank, in a statement today said the proposed acquisition, once completed, would enable both companies to share synergistic benefits that would lead to greater efficiency and thus ensure the provision of enhanced levels of service. MMHE is involved in marine repair, marine conversion and marine engineering works while Ramunia is involved in major fabrication for the offshore oil and gas (O&G) related structures. The acquisition of MMHE by Ramunia will be financed by the issuance of 1.4 billion new ordinary shares of 50 sen each at an issue price of RM1 and 3.6 billion 3.7 percent new irredeemable convertible preference shares (ICPS) of 50 sen each in Ramunia. In addition to the proposed acquisition, Ramunia will also increase its authorised share capital from RM855 million to RM5 billion and make amendments to its Memorandum and Articles of Association. Under the Securities Commission (SC) Guidelines, the proposed acquisition is a reverse take-over of Ramunia by MISC via its wholly-owned subsidiary MSE. In this respect, MSE and its concerted parties will be obliged to extend a mandatory general offer for the remaining securities of Ramunia which are not held by them upon completion of the proposed acquisition. However, MSE will seek an exemption from the SC from having to undertake the mandatory general offer, said the statement. On completion of the proposed acquisition of MMHE by Ramunia, MSE will then undertake a renounceable offer for sale of 82 million new Ramunia shares at an offer price of RM1 each to the entitled shareholders of Ramunia. This offer will be made on a pro-rata basis, based on the size of each shareholder's stake in Ramunia on an entitlement date to be determined later. Upon completion of the proposed acquisition, Ramunia will then seek the transfer of its listing from the Second Board to the Main Board of Bursa Malaysia. Ramunia and its subsidiaries are engaged in a wide spectrum of fabrication activities for the offshore oil and gas structures as well as offshore services comprising hook-up and commissioning works and marine support services and land-based heavy steel fabrication. The businesses of Ramunia and MMHE will be further strengthened by the synergy of their operations, especially in the engineering, procurement, construction and commissioning projects for exploration and production (E&P) activities in Malaysia and internationally. Both are also fabricators licensed by Petronas. In September last year, Ramunia expanded its steel fabrication facilities area from 90 acres to 170 acres. This, coupled with MMHE's own fabrication facilities of about 80 acres, will enable Ramunia to expand its fabrication facilities further and thus increase its operational capacity to undertake more complex, larger scale, multiple and value-added projects such as deepwater fabrication contracts. © 2008 BERNAMA.
Ramunia surges after accepting MISC's takeover bid by Angus Whitley
Ramunia Holdings Bhd. rose the most in more than two years in Kuala Lumpur trading after accepting a 3.2 billion-ringgit ($980 million) takeover bid from MISC Bhd., the world's biggest owner of liquefied natural gas tankers. The Malaysian oil-rig builder jumped 22 sen, or 19 percent, to 1.43 ringgit at the 5 p.m. local time close. That was the biggest gain since July 11, 2005. More than 56 million Ramunia shares were traded today, 24 times the daily average in the past six months, making it the second-most active stock today. MISC, which will inject its marine engineering unit into Kuala Lumpur-based Ramunia under the transaction, will more than double construction capacity at shipyards in the south Malaysian state of Johor. Ramunia, which becomes the publicly traded entity to house the division, is likely to make more money under the new ownership, analysts said. ``This is a different Ramunia from now on,'' said Thong Jung Liaw, an analyst at Aseambankers Malaysia Bhd. MISC can ``bring operating efficiencies to Ramunia and gets instant access to yard space, instant access to capital markets.'' He has a ``trading buy'' rating on Ramunia and a ``buy'' recommendation on MISC. Ramunia will issue shares valued at 3.2 billion ringgit to MISC in return for the Malaysia Marine & Heavy Engineering Sdn. division. MISC will own about 72 percent of Ramunia after the transaction, known as a back-door listing, according to Ramunia. ``Ramunia shareholders will benefit from a new growth impetus,'' Raymond Yap, an analyst at CIMB Investment Bank Bhd., wrote in a report today. ``The key benefit for MISC is an enlarged land area for fabrication.'' Shipyard Earnings: Malaysia Marine & Heavy Engineering provides repair services and makes shallow water structures as well as deepwater equipment. The unit has manufacturing facilities covering 90 acres. Ramunia's construction yards span 170 acres. Ramunia made about 120,000 ringgit of annual net income from each acre of yardspace, Aseambankers's Thong said in a report today. Malaysia Marine & Heavy Engineering generated 1.82 million ringgit of profit from each acre, the report said. ``We expect a gradual but progressive transformation in efficiencies,'' Thong wrote. Ramunia is likely to report a ``significant'' increase in earnings starting 2010, he said. MISC dropped as much as 15 sen, or 1.6 percent, to 9.50 ringgit and traded at that level at 12:23 p.m., giving the company a market value of 35.3 billion ringgit. Ramunia has a stock-market capitalization of 825 million ringgit. About 46 million Ramunia shares changed hands compared with a daily average of 2.4 million shares in the last six months. MISC, 62 percent-owned by Petroliam Nasional Bhd., plans to seek exemption from a rule that would force it to bid for the rest of Ramunia, according to a Jan. 22 statement from Ramunia. @ 2008 Bloomberg L.P.
Ramunia wins RM2bil contract
Petaling aya - Ramunia Holdings Bhd, which is mainly involved in the fabrication of offshore oil and gas structures, has been awarded a RM2.2bil contract from Oil and Natural Gas Corp Ltd (ONGC), an Indian company engaged in exploration and production activities. The contract value exceeds Ramunia’s net assets by 916%. In an announcement to Bursa Malaysia yesterday, Ramunia said its subsidiaries, Ramunia International Services Ltd and Ramunia Fabricators Sdn Bhd, received a notification of award on Jan 22 from ONGC for the execution of the entire scope of works for the B-193 Field Development Project. The project is sited in the Heera-Panna-Bassein block of the Mumbai offshore basin, about 60km to 90km west of Mumbai, in water with a depth of 60m to 75m and is near the Bassein gas field to the south. Ramunia said the project would contribute positively to group earnings from 2008 to 2010. An Aseambankers analyst said the award would increase the company's order book by 3.3% and stretch its earnings visibility to 2010. “It's their biggest project so far,” he said, adding that the company would more than likely outsource parts of the contract, such as transportation, to other parties. The latest job comes on the heels of the reverse takeover offer for Ramunia by MISC Bhd worth RM3.2bil through the issuance of 1.4 billion new shares valued at RM1 each and 3.6 billion 3.7% new irredeemable convertible preference shares. As part of the offer, Ramunia had agreed to a conditional agreement with MISC subsidiary MSE Holdings Sdn Bhd, which would dispose of its entire equity interest in Malaysia Marine and Heavy Engineering Sdn Bhd to Ramunia. © 1995-2008 Star Publications (Malaysia) Bhd.
RI agrees to install 7 radars from U.S. in Makassar Strait
Jakarta - The Indonesian government has agreed to install seven radars provided by the United States in the Makassar Strait to support security efforts in the major sea lane, Defense Minister Juwono Sudarsono said Tuesday. "The installation of the seven radars is meant to support ASEAN maritime defense and security," he said. "The U.S. government is committed to helping Indonesia build its capacity to secure its waters by providing the surveillance radars." Juwono said the proposal to install the surveillance radars in the Makassar Strait was submitted in 2006 but would only be implemented in stages starting in 2008. In the Asia and Pacific region the security of the Sea Lines of Communication (SLOC) is a matter of vital importance to users of these lines, he said. The Makassar Strait, running between Kalimantan and Sulawesi islands, is designated as the second of Indonesia's three SLOCs. The U.S. previously provided Indonesia with five surveillance radars that were set up along the Malacca Strait to support security in the world's busiest sea lane. © Antara © The Jakarta Post.com.
RM14m boost for Straits of Malacca security by Mazwin Nik Anis
Putrajaya - Users of the Straits of Malacca can expect better security along one of the world’s busiest shipping lanes, thanks to assistance from Japan that will allow improvements and enhancements to Malaysia’s maritime security equipment. A grant from the Japanese Government will see RM14.2mil provided to enhance the Malaysian Maritime Enforcement Agency’s capacity for maritime security in the straits and Malaysian territorial waters. The signing of the exchange of note for the programme was held Friday, with Foreign Ministry secretary-general Tan Sri Rastam Mohd Isa representing the Malaysian Government, while Japan was represented by its ambassador to Malaysia, Masahiko Horie. In his speech, Rastam said Malaysia, being one of the littoral states, had the primary responsibility over the safety of navigation, environmental protection and maritime security in the straits. He said in order to assume the responsibility more effectively, the Government developed the Malaysian Sea Surveillance System in 1996 to provide the necessary maritime radar surveillance covering the area. “The grant will be used to improve the existing surveillance system. This is expected to further enhance maritime security in the Straits of Malacca. “The upgrading programme includes the installation of a radio direction finder system and electro-optronics system on Malaysia’s remote sensor sites,” he said. Rastam noted that Japan has been consistent in providing bilateral aid, assistance and loans in the form of Official Development Assistance (ODA) over the past 40 years to Malaysia, adding that its assistance had helped Malaysia implement its national development plans and programmes. Horie said maritime security was an “obvious and vital element” for Japan’s national security and critical in its relations with key partners, particularly littoral states in the Straits of Malacca. “We take note that the high expectation of international users and increased volume of maritime traffic have placed considerable demands and financial burden to the Malaysian Government. “As such, Japan remains committed in providing the impetus for a fundamental transformation of Malaysia’s maritime security through the development and improvement of essential capabilities,” he said, adding that Japan’s coastguard and private sector had also provided various co-operation programmes for Malaysia. © 1995-2008 Star Publications (Malaysia) Bhd.
Scientists sound alarm over starfish threat in Indonesia
Jakarta - The predatory crown of thorns starfish is threatening Indonesia's portion of the "coral triangle," the richest area of coral reef biodiversity on the planet, scientists warned Tuesday. The starfish have been discovered in large numbers by researchers from the Wildlife Conservation Society and the Australian-based ARC Centre of Excellence for Coral Reef Studies, who surveyed reefs around Halmahera in Indonesia's Maluku Islands, a press release said. The triangle lies between Indonesia, Malaysia, the Philippines, Papua New Guinea and the Solomon Islands and contains more than half the world's reefs, considered building blocks for marine life. More than 600 species of coral -- 76 percent of those known -- and more than 3,000 plant and fish species live in the triangle's waters. Scientists said they feared the growth in numbers of the starfish was caused by poor water quality and could be an early warning of widespread reef decline. "We witnessed a number of active outbreaks of this coral predator. There was little to suggest that the reefs have been much affected by climate change as yet. The threats appear far more localised," said Andrew Baird from the Centre of Excellence in the statement. The starfish feeds on coral by spreading its stomach over them and using digestive enzymes to liquify tissue. Researchers also saw evidence of blast-fishing which had occurred following communal violence in recent years. "The good news is that the reef fish assemblages are still in very good shape," said the Wildlife Conservation Society's Tasrif Kartawijaya. "So these reefs have the capacity to recover if we can address the current threats." The Coral Triangle Initiative announced by six regional governments at last year's climate change conference in Bali "offers hope for the reefs in the region," the researchers said. They said however that the role of research under the initiative, which they see as crucial in working out how to respond to threats on the reef, should be made clearer. The initiative aims to establish a network of protected marine zones, to decrease wear and tear on the reefs caused by the fishing industry and to promote eco-tourism. Marine resources in the coral triangle provide a living for 120 million people and one-third of the world's tuna catches come from the area. © 2008 AFP.
Ship prices to rise in 2008
Kuala Lumpur - Ship prices will rise in 2008, said a Citi Investment Research study. Yards are facing capacity constraints due to a large backlog of orders from 2006. “[The] global order book is getting closer to four years and shipbuilders have strengthened their bargaining power again based on strong order books,” it warned. The study said price increases were also due to new IMO ship regulations (such as double-hull tankers); the unexpected increase in bulk carrier rates; a lack of skilled workers and the US dollar’s effect on the price of steel. Meanwhile, Korea’s continued ability to monopolise the global shipbuilding industry will continue, with a 38% predicted market share. China’s position is more "fragmented" it said, as its top five yards have only captured only 55% of its shipbuilding capacity, compared to the top five Korean yards at 81%.
Straits air surveillance to include Thailand by Shahanaaz Habib
Kuala Lumpur - Malaysia and Singapore plan to invite Thailand to join them in the "Eyes in the Skies" air surveillance programme to combat piracy in the Straits of Malacca. Defence Minister Datuk Seri Najib Tun Razak said the "Eyes in the Skies" air surveillance had very positive impact on the security of the Straits. "We want to expand this and there is a possibility that Thailand will be with us in the programme," he told reporters Tuesday after a visit from his Singapore counterpart Teo Chee Hean. As for the timing, Najib said, this would depend on the new Thail Government which had just been sworn in. "They have expressed their interest to join us and we have no objection," he said. Teo said the "Eyes in the Skies" programme had made the Straits more secure that it was now taken off the war risk list which was an important development for shippers. Both ministers described their bilateral relations in defence as good. Najib said they also discussed the exchange of information between the two countries, particularly with regards to security in the region. © 1995-2008 Star Publications (Malaysia) Bhd.
US grants 15 patrol boats to Indonesia
Jakarta - The United States government on Thursday gave 15 patrol boats to Indonesia's national police to boost security in the sprawling archipelago, an official said. Police will deploy the boats near the vital shipping route of the Malacca Strait, United States embassy spokeswoman Susan Stahl was quoted by Agence France-Presse as saying. 'The high-speed patrol boats have been given to the Indonesian national police to help them in their maritime security efforts,' she said. US Ambassador Cameron Hume turned over the boats to Indonesian national police chief General Sutanto at a ceremony in North Sumatra province on Thursday morning, state-run news agency Antara reported. Sutanto said the grant was received after Indonesia lobbied the US government, citing cases of drug smuggling across its maritime borders. The Malacca Strait, which separates the Indonesian island of Sumatra and peninsular Malaysia, is one of the world's most important waterways, with 50,000 ships carrying about one-third of world trade through it each year. The waterway remains notoriously vulnerable to piracy, despite successful cooperation between regional governments to reduce the frequency of attacks in recent years. © 2007 Thomson Financial News Limited.
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