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Rising costs force Asian rate hikes
UK - The Europe-Asia trades are poised for another bumper year in 2005 after an exceptionally strong 2004 both eastbound and westbound. With demand so resilient, and costs also rising, members of the Far Eastern Freight Conference are proposing to raise freight rates on both corridors, with shippers of wastepaper and plastic scrap to Asia facing monthly price reviews during the course of 2005. In its business plan published Friday, the FEFC said eastbound trade volumes had grown 17% in the first seven months of the year, with westbound volumes soaring by 18%. Similar levels of growth are anticipated for next year. But while revenues are rising on the back of record traffic levels, costs are also moving sharply upwards, with ship charter rates now some 50% higher than a year ago for both mainline and feeder vessels. With oil prices at record levels, fuel costs are on the rise as well while bunker surcharges do not fully compensate for the increased costs, the FEFC said. Other items that are piling on the overheads include worsening container imbalances, terminal costs, and berth congestion that is forcing lines to spend more on feedering and trucking. The cost of trying to make up for lost time caused by delays in both Europe and Asia is increasing fuel consumption. The FEFC said conference rates for cargo moving from Asia to North Europe and the Mediterranean, with the exception of Japan, would be lifted by $150 per 20ft container on January 1 and by the same amount again on April 1, with further increases for later in the year to be announced nearer the time. From Japan to Europe, recommended rates will go up by $200 per 20ft box on April 1 for 12 month contracts. A two tier increase for six month contracts of $150 per 20ft box in April, and October was agreed by lines. From northern Europe to the Far East, waste paper and plastic scrap rates will be reviewed on a monthly basis with rates valid for just a month. © Informa Asia Publishing Ltd.
IACS delays common rules
THE International Association of Classification Societies has announced postponements to the new common rules regime. The IACS Council has agreed to extend the consultation period and the last day for comments is now 31 December 2004. With the project teams reporting that over 3,000 industry contributions have been received so far, final approval of the new rules has been postponed until the Council’s June 2005 meeting so that all comments can be considered fully. It is hoped that the new rules will enter into force on 1 January 2006. The IACS Council reports that it will use the time created by the postponement to consider the implications of the IMO debate on goal-based standards. © Lloyd's Register - Fairplay Ltd 2004
India fears Chinese slowdown
INDIAN shipping companies and exporters of steel and iron ore have raised concerns about a possible slowdown in the Chinese economy following its central bank’s rising of interest rates last week. India, a major supplier of iron ore and steel and other commodities to China, is concerning over a possible fall in commodity prices and shipping freight markets. There are fears that China, one of the world's largest importer countries, may lose some of its demand for industrial raw materials, and the country, which has been importing a substantial portion of the world’s production of copper, steel, iron ore and crude oil, may soon slow its import consumption, said analysts. A few months ago, a similar attempt by China to cool its economy hit India’s ore trade, as well as bulk shipping freights. Many iron ore contracts between India and China were dishonoured as prices fell, said an observer in Mumbai. © Lloyd's Register - Fairplay Ltd 2004.
Historic ship link for Koreas
SOUTH KOREA - For the first time a ship registered in the Republic of Korea (South Korea) is being used officially for commercial trade with the Democratic Peoples Republic of Korea (North Korea). The two Koreas, separated and isolated from each other since the armistice in the Korean War in 1953, have never officially sanctioned such a deal before. The only voyages by South Korean ships to North Korean ports in 55 years have been ships delivering humanitarian aid to shortages-ridden North Korea. According to South Korea’s Ministry of Maritime Affairs and Fisheries, a sand carrier from a domestic transportation company, the Yusung Goljae, will pick up coastal sand from Heungnam port in North Korea and deliver it to the South Korean port cities of Pusan, Donghae and Gwangyang. The commercial reason for the new service, which is expected to eventually include seven shipments a month, is that coastal sand is in high demand by Seoul’s construction industry. Until now Panamanian-registered ships have made the deliveries. To date, North Korea’s Heungnam port has been under utilised. © Informa Asia Publishing Ltd.
MISC tipped to unveil record profits
MALAYSIA International Shipping Corp. (MISC), should post a 42 per cent rise in quarterly profit next week on the back of strong shipping rates and LNG demand, leading analysts have told Reuters. Freight rates have surged on rising global trade, particularly to and from China, and a tight supply of ships. Tanker rates have also soared as oil exporters boost output to maximize profits on high crude prices, increasing demand for transport. Shares in MISC, Malaysia's fourth-biggest listed firm, hit a record high of 14 ringgit on Wednesday. The stock rose 7.6 percent in July-September versus a 3.7 percent gain in the main Composite Index. "The market has been re-rating the stock. MISC earnings continue to impress people, and I will not be surprised if the stock continues to climb," said Ngu of TA Securities. Analysts said current strong tanker and liner rates would boost MISC's earnings in the year to March 2005. But profits could dip in fiscal 2006 as rates soften, though this may be partially offset by increasing LNG capacity. MISC, a unit of state oil and gas firm Petronas, is expected to increase full-year net profit by 15 percent to Ringgit2.63bn from Ringgit2.29bn, according to Reuters Estimates. MISC valued at nearly $7 bn, is expected to report next Wednesday net profit of Ringgit700,m ringgit ($184 million) in its fiscal second quarter to Sept. 30, according to three analysts. (Reuters)© 2004 Informa UK Limited
MISC yard subsidiary wins $100m Shell contractsby Keith Wallis
MALAYSIA Shipyard & Engineering, a subsidiary of Malaysia International Shipping Corporation, has won a M$385m (US$101m) package of five contracts from Shell Malaysia to build offshore gas production facilities. Shell Malaysia said: "The five contracts are for the fabrication and upgrading of drilling and production topsides and jackets for key gas production facilities offshore Sarawak. When completed, the facilities will form the largest Royal Dutch/Shell group project in Asia Pacific." Up to 1,800 workers will be employed in Malaysia Shipyard & Engineering’s yards in Johor during the peak of fabrication. The facilities are due to be delivered by December 2005. MISC owns a 65% stake in Malaysia Shipyard & Engineering which concentrated on heavy engineering including oil and gas projects and ship repair. In the last financial year Malaysia Shipyard & Engineering delivered 13 oil and gas engineering projects and repaired 105 ships in deals worth more than M$650m. It also converted two former tankers into floating production, storage and offloading facilities under contracts valued at about M$240m. © 2004 Informa UK Limited
Star Cruises confirms talks
TRADING of Star Cruises stock was temporarily suspended on news that the Asian cruise giant is in talks with a potential partner. In a statement, Star admitted that it is now in "exploratory discussions" with a "potential partner with respect to tourism-related business", but cautioned that the proposed tie-up "may or may not materialise". Star gave no indication on whether the negotiations involved its Star and/or NCL cruise brands, and said that no agreement has been reached with the unnamed potential partner. In response to "unusual share price movement" on 26 October, trading in Star shares was temporarily suspended on the Hong Kong Stock Exchange and CLOB International Exchange on 27 October. © Lloyd's Register - Fairplay Ltd 2004
Filipino owners hoping for change
PHILIPPINE Department of Transportation secretary Leandro Mendoza has favourably endorsed the request of Filipino shipowners for a change in government import and export contracts. In his letter to energy secretary Vicent Perez, Mendoza endorsed the suggestion made by the Filipino Shipowners' Association (FSA) that the country’s coal imports should be put to auction on a Free-on-Board basis so that separate bids for the cargo and freight can be conducted, enabling Filipino shipowners to participate. Mendoza said Filipino owners' desire to carry government cargo would help to boost efforts to help modernise the Philippine overseas merchant fleet and stimulate sector investment in overseas shipping. In a statement, FSA president Carlos Salinas said the opportunity to carry government cargo will likewise result in foreign exchange savings as freight payments will now be made to Philippine overseas shipping companies. In turn, the income generated by these overseas shipping companies not only mean additional revenue to the government but would stimulate the expansion and modernisation of the country’s merchant marine fleet, Salinas said. © Lloyd's Register - Fairplay Ltd 2004
Indian shipping profits soar
INDIAN shipping companies have recorded unusually high net profits during the 3Q04 due to enhanced tonnage, buoyant freight markets and lower taxes post-tonnage tax. Industry leader Shipping Corp of India has surprised analysts with a 162% jump in net profits to Rs2.0Bn ($45M), riding a 15% increase in total income at Rs8Bn. The country's largest private owner Great Eastern Shipping, which went on a massive acquisition spree last year, has shown a 71% total income jump to Rs4.9Bn, and posted a 109% rise in net profit to Rs1.7Bn. SKS (Ship), the largest coastal shipping operator, posted its best ever performance with a massive increase in net profits to Rs6.8M. More contracts and higher freight earnings helped Mercator Lines record a doubling of operating income, while Varun also posted a steady increase in net profits. © Lloyd's Register - Fairplay Ltd 2004
Jurong clinches orders as it cashes in on congested schedules in North Asia
Singapore - Jurong Shipyard has clinched orders for two 2,600 teu boxships $42m each from a German owner, after offering delivery dates well ahead of North Asian yards. Reederei F Laeisz has ordered two 2,600 teu vessels from SembCorp Marine’s Jurong shipyard with delivery in March and September 2006. The German owner is paying nearly 30% more than similar ships ordered by Wan Hai Lines last year at the Singapore yard. Reederei F Laeisz is paying $42m per vessel compared to $31.5m paid by the Taiwanese line when it ordered from the yard in 2003. The Singapore yard is however one of the few yards left that can offer deliveries not only in 2006 but even the early part of the year. By contrast owners ordering at North Asian yards could well be looking at 2008 for delivery. Jurong decided to move into building container vessels of the 2,500 teu range in 2002 having judged that demand was rising in this segment. “The decision coincides with the rising market trend, corresponding to a firming of prices for container vessels and at the same time meeting the owner’s delivery schedules,” said Chua Teck Lian, SembCorp Marine’s senior vice president of marketing. With North Asian yards bursting at the seams Southeast Asian yards such as those in Singapore, Vietnam and Indonesia have benefited as owners search for yards that can offer early delivery dates. © Informa Asia Publishing Ltd.
Intertanko urges IACS on rules
INTERTANKO has urged IACS to act quickly following news that the common rules regime will be delayed. Although welcoming the delay for consultation purposes at its meeting in Amsterdam last week, Intertanko’s council emphasised that speed in reaching a final version is crucial. “We would like IACS to address the industry’s comments as quickly as possible, and equally quickly to demonstrate the practical impact of the new common rules,” the council said. However, Intertanko stressed that implementation must not come at the expense of quality, commonality or consistency. "It is quite simply not acceptable that there are any substandard ships. We want … good rules and common rules, quickly,” summed-up Intertanko chairman Stephen van Dyck.© Lloyd's Register - Fairplay Ltd 2004
MISC subsidiary wins $101m offshore deal
MALAYSIA - Malaysia Shipyard & Engineering, a subsidiary of Malaysia International Shipping Corp, has won a M$385m (US$101m) package of five contracts from Shell Malaysia to build offshore gas production facilities. Shell Malaysia said: "The five contracts are for the fabrication and upgrading of drilling and production topsides and jackets for key gas production facilities offshore Sarawak. The facilities will form the largest Royal Dutch/Shell group project in Asia Pacific." The facilities are due to be delivered by December 2005. MISC owns a 65% stake in Malaysia Shipyard & Engineering, which concentrates on heavy engineering including oil and gas projects and ship repair. In the last financial year Malaysia Shipyard & Engineering delivered 13 oil and gas engineering projects and repaired 105 ships in deals worth more than M$650m. © tfinforma.
Singapore sets up new maritime arbitration centre by Marcus Hand
SINGAPORE is targeting London’s maritime arbitration business with lower costs at its new Chamber of Maritime Arbitration. The Singapore Chamber of Maritime Arbitration was launched on Monday as the Republic set out its stall to capture a slice of the maritime arbitration business from London and other established centres. The SCMA is a specialised arm of the Singapore International Arbitration Centre and has a panel of 40 arbitrators, mainly from Singapore, but also from the US, UK, China and Japan. The centre is the first major initiative of maritime industry promotional body Singapore Maritime Foundation, and is the latest in a series of moves by the country’s authorities to boost its maritime legal profession to compliment its port and shipping businesses. In a speech at the launch of the chamber, SMF board member, Dato’ Jude Benny, noted a report on the future of London’s maritime services sector by Fisher Associates which said that the principal weakness of London’s legal sector was costs including solicitors and barristers fees and the general cost of doing business in the British capital. Also a partner in Singapore law firm Joseph Tan Jude Benny, Dato’ Benny said he could personally atest to Singapore’ manageable legal costs, but also had strengths like complimentary services such as banking, communications and insurance. Total fees at the SCMA for a case involving a sum of US$750,000 to US$1m in claims and counter claims is estimated at US$45,250 to US$56,250. For a dispute involving claims and counter claims of US$10m total costs are estimated at US$112,000. There is also a fast track for small claims disputes. “One noteworthy initiative is the incorporation of a fast track procedure for claims under US$75,000, where a sole arbitrator will resolve the dispute in 21 days,” said Lim Hwee Hua, Singapore’s Minister of State for Finance and Transport. © 2004 Informa UK Limited
Ship runs aground in Singapore
THE 1,160 TEU container ship Milena ran aground in Singapore waters on 6 November, the Maritime and Port Authority confirmed. The ship is registered in Antigua & Barbuda and operated by Tom Wörden in Germany. There was no report of any injury to the crew, MPA said. Milena was carrying 574 containers at the time and is in a stable condition as arrangements are made to refloat it. No oil pollution has been detected, but as a precaution MPA has deployed an anti-pollution craft. Port operations and vessel traffic remain unaffected. The ship was en route to Mumbai from Singapore and had sailed from Singapore port at 1810 hours local time. MPA will investigate the incident. © Lloyd's Register - Fairplay Ltd 2004.
Box rates boost Sea Containers
RISING container prices have pulled box lease rates higher, says Sea Containers in its third quarter statement issued today, but shipyards are busy turning out ever larger container ships, and more containers will be needed to fill these ships. The company’s chairman, Jim Sherwood, commented that he had never seen such high demand and high utilisation. “Our lessees are making excellent profits and are accepting container lease rate increases with a minimum of fuss,” he said. Sea Containers’ operating profit from container operations rose to $4.4M for the three months to 30 September, up from $2.8M in 2003. The GE SeaCo-owned fleet had 99% utilisation at the end of the quarter. The period also sees highest demand for the company’s ferries, but the price of light fuel needed to operate the fast ferries soared “beyond expectations” at the time of the last earnings release. Expenditure on fuel of the quarter increased by $3M, and despite a reduction of 15% from the peak, the company warned that the price outlook for 2005 remains uncertain. Changes to vessel deployment are expected before the end of the year. With the exception of the containers, it was a tough quarter for Sea Containers, with earnings lower for Silja Line, the other ferry brands and rail operator GNER. © Lloyd's Register - Fairplay Ltd 2004.
Singapore strengthens legal status
SINGAPORE today signalled its entry into the international maritime arbitration circuit by officially launching the Singapore Chamber of Maritime Arbitration (SCMA). “With 4,000 maritime and maritime-related establishments in Singapore, there is a ready pool of clientele for the maritime legal services sector to tap into,” finance and transport minister Lim Hwee Hua said at the inauguration. Singapore set up a dedicated Admiralty Court in 2002. In June this year the Legal Profession Act was amended to allow foreign lawyers to assist in arbitration proceedings using Singapore law. Singapore sees the maritime legal sector as a critical component of the objective to develop the island nation as an International Maritime Centre. Dato’ Jude P. Benny, legal expert and board member of the Singapore Maritime Foundation sought to dispel the “misunderstanding” that Singapore arbitration means settlement of disputes in accordance with Singapore law. It merely refers to the seat or place of administration of the arbitration, he clarified. The maritime foundation is spearheading Singapore’s aggressive drive for IMC status along with the Maritime and Port Authority. © Lloyd's Register - Fairplay Ltd 2004.
S'pore, Malaysia to study experts' report on reclamation row by S Ramesh
SINGAPORE: A group of experts studying Singapore's land reclamations in the Straits of Johor has completed its work. The Malaysian and Singapore governments, in a joint statement, say they have received the group's final report. They say they will now study the report and the recommendations made, in the same spirit of cooperation and consultation that has been shown throughout the course of the study. This is with a view to reaching agreement on further steps. The experts group was set up after the International Tribunal for the Law of the Sea handed down its decision in October last year, declaring that Singapore could continue its reclamation works at Tuas and Pulau Tekong. Malaysia had requested for a stop work order till the dispute went to arbitration. It claimed that the reclamation off Tuas violated its territorial waters, while the work off Pulau Tekong was damaging Malaysia's beaches and harming its fisheries. But the 21-judge panel ruled in Singapore's favour. However, it proposed that both countries set up a group of experts to study the impact of the reclamations and requested for a report within a year of the setting up of the group. Singapore readily accepted the proposal. CNA © 2004 MCN International Pte Ltd.
US warns of foreign kidnap cases off Malaysia's Sabah state
WASHINGTON: The United States warned of kidnappings of foreigners in resorts around Malaysian Sabah state's eastern coastal areas in Borneo. There have been several kidnapping and piracy incidents in the areas since 2000. Among the latest reported international kidnapping cases was in October 2003, when six Indonesian and Filipino workers were abducted from a coastal resort in eastern Sabah. "There are indications of planned additional kidnappings in eastern Sabah's coastal areas, especially at resorts frequented by foreigners," a US State Department public announcement said Monday. It warned American citizens to be cautious when visiting the areas. "Because of these incidents, along with indications of a continuing threat of kidnap attempts, American citizens should exercise caution when visiting the coastal areas of eastern Sabah," the advisory said, updating a previous alert issued in May. Since 2001, Malaysia has maintained a significant security presence in the region, but Sabah has extensive open waters between the mainland and its offshore islands, the statement said. "Emergency assistance may not always be available." Al-Qaeda-linked Abu Sayyaf kidnap-for-ransom group based in the southern Philippines was responsible for some of the kidnappings. The State Department said that extremist groups in the region were capable of carrying out transnational attacks in locations where Westerners congregated, warning that they did not distinguish between official and civilian targets. It also advised US citizens to be wary about traveling overland into southern Thailand from Malaysia. The southern Thai province of Narathiwat has been tense since 87 people died last month after troops broke up a riot with tear gas, water cannon and gunfire. The majority suffocated or were crushed after being bound and left for hours on military trucks. Malaysia, whose northern peninsula shares a border with Thailand, has put its border police on alert and warned citizens against crossing into southern Thailand, a popular destination for tourism and shopping. AFP. © 2004 MCN International Pte Ltd.
Pirate attacks worldwide have eased so far in 2004
Pirate attacks worldwide in the first nine months of 2004 dropped to their lowest levels in five years, helped by declines in hotspots such as Indonesia, Bangladesh and Nigeria, a maritime group said Thursday. Seafarers suffered 251 attacks globally between January and September, a 27 percent drop from the 344 attacks in the same period of 2003, the British-based International Maritime Bureau said in a report released by its Piracy Watch Center in Kuala Lumpur. The figure was the lowest for this period since 1999, when 180 attacks occurred worldwide. However, the IMB warned law enforcement authorities against becoming complacent. "We welcome the marked decrease in some numbers, but it's hard to determine whether the piracy situation is really improving," said Noel Choong, head of the piracy watch center. Choong noted that attacks sometimes spike in the last quarter of each year, often because countries lag in reporting earlier incidents. Indonesia remained the most pirate-plagued nation, accounting for a quarter of the global total. But the 70 attacks it recorded during the first nine months of this year was down from 87 in the same period last year. Many other nations also reported significant decreases during the period. Attacks in Bangladesh plunged to 15 from 37; India to 10 from 24; Nigeria to 18 from 28; Venezuela to six from 11; the Philippines to three from 12; and Vietnam to three from 10. The number of attacks in the Malacca Straits, a key shipping lane that straddles Indonesia's Sumatra island and peninsular Malaysia, was nearly unchanged at 25, compared with 24 in the straits from January-September 2003. A few other areas grew more perilous. There were eight attacks in the Singapore Straits and another eight in South China Sea, compared to none in both territories last year. Casualties worldwide remained high. Thirty crew members were killed in the first nine months of 2004, compared to 20 at this point last year. Half the deaths occurred in Nigerian waters, where pirates armed with automatic weapons have preyed on commercial ships and passenger ferries. © 2002 The Associated Press
Worldwide pirate attacks fall by over a quarter
MALAYSIA - PIRACY attacks worldwide fell by more than a quarter in the first nine months of 2004, reaching their lowest levels for five years, according to a report from industry watchdog the International Maritime Bureau. There were declines in incidents in many of the main trouble spots for attacks on shipping, including Indonesia, Bangladesh and Nigeria, There were some 251 piracy cases between January and September, a 27% drop from the 344 attacks in the same period of 2003. This figure was the lowest total for the first three quarters of any given year since 1999, when the comparable figure was 180 attacks. Unfortunately, casualties remain high. Some 30 seafarers were killed in the first nine months of 2004, compared with 20 at this point last year. Half the deaths occurred in Nigerian waters, where pirates using automatic weapons have deliberately targeted merchant and passenger vessels. In its assessment, the IMB maintained that despite the decrease in the number of attacks, it can not yet be definitively stated that the problem of piracy is declining. © 2000 - 2002 Informa Asia Publishing Ltd.
IMB reports six Malacca Strait attacks in last week by Marcus Hand
DESPITE coordinated patrols in the Malacca Strait piracy attacks continue unabated in Indonesian waters with six over the last week including a tug boat towing an oil rig which came under fire. A tug boat came under fire in the early evening November 3 from pirates in Indonesian waters in the busy Malacca Strait while it was towing an oil rig the International Maritime Bureau’s piracy reporting centre said in its weekly report. The pirates were in boats that appeared to be fishing vessels. “One boat came close and pirates inside started shooting causing extensive damage to navigation equipment, bridge windows and superstructure,” the bureau reported The tug’s crew activated fire hoses, turned on lights and fired flares, but the pirates continued to fire on the vessel and came within 50m. By taking evasive manoeuvres the tug boat was able to shake-off the pirates. Fortunately none of the crew was injured in the attack. It is the latest in a series of violent attacks on tugboats in the Indonesian part of the Malacca Strait and in two cases last month crew members were taken hostage and only released after ransoms were paid. Last week there were also no less three incidents at the port of Balikpapan, including an attempted boarding of a tanker underway, while two bulk carriers were attacked at anhcorage. A bulk carrier was also attacked at an anchorage in Banjarmasin, while pirates attempted to board a bulk carrier off the Sunda Islands. © 2004 Informa UK Limited.
MISC bucks profit hike trend
MALAYSIA - While many companies are recording massive profit rises, the consistently profitable Malaysia International Shipping Corp is seeing lower rises with long-term LNG charters forming the core of its earnings. The National Malaysian shipping company reported a M$599.6m profit before tax in its second quarter ending September, 19.4% higher than the M$502.3m achieved in the same quarter a year earlier. Revenues were up 39.6% at M$2.55bn, as compared to the M$1.83bn recorded in the same quarter a year earlier. “The significant improvement was the result of better performance in the main shipping segments arising from higher freight rates and improved operating efficiency,” said MISC. Profit rises were, however, much lower than the spectacular levels recorded by many companies in recent times as the majority of MISC’s earnings come from LNG shipping where it derives its earnings from stable long term charters, largely from parent Malaysian state oil company Petronas. Of a first half profit of M$1.5bn, energy related shipping, comprising LNG and petroleum shipping, accounted M$1.19bn. Other shipping, chemical tanker and bulk shipping operations brought in profits of M$466m, and liner shipping M$111m. Second quarter results were actually down M$325m or 35.1% on the first quarter of the financial year as the previous three months included a US$84m extraordinary gain from the enbloc sale of 15 handysize bulkers to Precious Shipping. Even excluding the extraordinary gains, the second quarter of the current financial year was still 1% or M$14.4m lower than the first due to higher losses at shipyard unit Malaysian Shipyard and Engineering. © Informa Asia Publishing Ltd.
Change of fortune for Star Cruises
MALAYSIA - Star Cruises, which has suffered a rocky couple of years, is seeing an improvement in fortune with nine month net profits up 94.7% compared to last year. Star Cruises, listed on the Hong Kong and Singapore stock exchanges, reported a net profit of $28.2m for the first nine months of this year compared to $14.5m for the same period a year earlier. Star noted that its performance for the first nine months of 2003 was affected by the impact from the Iraq conflict and the outbreak of Severe Acute Respiratory Syndrome in Asia. Net profit for the third quarter of 2004 actually declined 10% compared to a year earlier at $46.4m, as the previous year’s third quarter included proceeds of $9.2m from the loss of hire coverage minus related expenses for the SS Norway boiler accident in the third quarter of 2003. In Asia under the Star Cruises brand third quarter 2004 capacity was down 41.2% compared to the same quarter in 2003, due to the disposal of two older and less cost-efficient ships and the transfer of SuperStar Leo, renamed Norwegian Spirit, to the NCL Group. Occupancy for the Asian- based brand increased from 85% in the third quarter of 2003 to 102% in the same quarter this year. Occu-pancy level of 100% is based on two people sharing a cabin. Capacity for its US-based brand NCL was, meanwhile, up 11.7% to 1.7m capacity days in the third quarter of 2004 with the addition of the Norwegian Spirit. Ship operating expenses were up for NCL with the start of its Hawaii-based cruise operations. © Informa Asia Publishing Ltd.
NCL weighs on Star results
STAR Cruises may have benefited from a stronger pricing environment, but it has paid a price for subsidiary Norwegian Cruise Line's Hawaii venture. Star's net profits dropped to $46.4M on revenues of $478.7M in its third quarter, versus profits of $51.6M on $337.5M in revenues in 2003. Profits in the Asia Pacific rose 48% versus SARS-affected 2003 results. But NCL saw profits drop from $53.2M to $47.6M, despite a 12% increase in capacity, a 2% increase in occupancy and a 2.3% increase in net revenue yields. The problem for NCL was higher ship operating expenses, which rose 9.8% during the quarter, with three-quarters of that increase solely attributable to "operating challenges during the start-up of the Pride of Aloha in Hawaii and higher than budgeted manning costs on that ship". With two new NCL newbuildings due to enter the Hawaii market in 2005 and 2006, the question for Star is whether this sector's higher costs represent start-up investments or an ongoing impact. © Lloyd's Register - Fairplay Ltd 2004
Pirates target Balikpapan by Dale Wainwright
Balikpapan, a major Indonesian oil exporting port, suffered three separate piracy attacks last week, the International Maritime Bureau (IMB) said in its weekly report. Indonesian authorities are on their guard after three attacks in Balikpapan. In one of the more violent attacks a general cargo ship’s duty A/B was taken hostage by three robbers armed with long knives, the IMB’s Piracy Reporting Center said. In the early hours of Monday morning a duty officer on a tanker sailing off Balikpapan noticed three suspicious unlit craft underway. He later discovered they were speedboats with masked men inside who were trying to board the ship from its starboard quarter. The day before four knife-wielding pirates approached a bulker underway off Sunda Islands in Indonesia’s Java Sea in position 05° 06'S, 117° 23.5'E. The ship’s master raised the alarm and took evasive measures forcing a pirate who had boarded the ship to jump overboard empty handed. The incidents were among seven piracy attacks reported for the week ending 8 November by the Kuala Lumpur-based anti-piracy watchdog. In the Malacca Straits a tug towing an oilrig sustained extensive damage after pirates in one of several fishing boats racked it with gunfire. There were no physical injuries to any of the tug’s crew following the attack, but they were reported to be shaken after the incident. The only attack reported outside Southeast Asia occurred at the Callao anchorage in Peru where a robber boarded a tanker and stole ship’s stores before escaping. © TradeWinds.no.
Surge in Indonesian attacks by Dale Wainwright
Pirates inflicted knife wounds on a sailor last week as Indonesia experienced a surge in attacks, the International Maritime Bureau (IMB) said in its weekly report. Indonesia suffered five attacks in less than a weekSix knife-wielding pirates attacked his ship at Bontang anchorage in position 00° 00.02'N, 117° 36.09'E on 28 October, the IMB’s Piracy Reporting Center said. But the robbers jumped over the side of the ship and fled empty handed after the bulker’s crew who had mustered on deck challenged them. The incident was one of eleven piracy attacks reported for the week ending 1 November by the Kuala Lumpur-based anti-piracy watchdog. Attacks were also reported at Indonesia’s Santan and Banjarmasin anchorages involving an LPG tanker and a bulker respectively. Both attacks failed. There were also two separate incidents at the anchorage in Dumai on consecutive days, but it is unclear if the same gang of pirates committed both attacks. In the northern entrance to the Malacca Straits a boxship took evasive action after it was approached by eight speedboats from both the port bow and starboard quarter. A day later two speedboats also in the Malacca Straits targeted a reefer ship. But the ship’s master took evasive action and the boarding attempt was averted. There were also reports of piracy attacks in the Nigerian port of Lagos, Dar Es Salaam outer roads in Tanzania, Maracaibo anchorage in Venezuela and the Gulf of Aden. © TradeWinds.no.
MISC profits stay strong by Liz Shuker
Shares in Malaysia International Shipping Corp (MISC) rose 2% today after the company reported another strong set of earnings for the latest quarter. Efficiency gains and high freight rates produced a MYR 600m ($158m) pre-tax profit for the group in the quarter ended 30 September. The result was 19% up on the MYR 502.3m reported last year. Revenue rose 40% to MYR 2,556m. MISC attributed the gains to better performances in its main shipping segments, and improved operating efficiency. It predicts more good times ahead. “The prospect of the shipping industry remains positive,” it commented. MISC's financial ratios continue to improve from the gains. Annualised returns on shareholders’ capital rose from 12.8% to 13.2% in the quarter, while gearing fell from 77% to 72%, due mainly to the company’s $1.1bn bond issue earlier this year. MISC will pay a semi-annual interim dividend of MYR 0.2 per share on 22 December to holders of record on 6 December. Though the latest result is down from the previous quarter’s MYR 924.6m profit, the latter includes an exceptional gain of MYR 320.6m from the disposal of 15 handysize bulkers and two containerships. The company’s stock has risen nearly 30% this year on the Kuala Lumpur Stock Exchange, compared to a market average of just 11%. © TradeWinds.no.
Halim Mazmin selling boxships by Dale Wainwright
Malaysian shipowner Halim Mazmin Berhad (HMB) is taking advantage of the hot boxship market to sell two 2,680-teu containerships to Mediterranean Shipping Co (MSC). Halim Mazmin is selling the MSC America and MSC Tasmania (both built 1993) for a combined total of $60m. Both ships, which are on time charter to MSC, were acquired in 1997 for $35m each. The MSC Tasmania is deployed in the Europe-US trades while the MSC America is operating on the Asia-Europe route. The Kuala Lumpur-listed owner said it expects to deliver both ships before the end of November. “The proposed disposals will enable the HMB Group to realise premium value for the two vessels,” Halim Mazmin said. It expects to receive about MYR160m ($42m) in cash from the disposals after the settlement of borrowings related to the two ships. Halim Mazmin expects to make a gain of about MYR36.4m on the sales the proceeds of which would be directed towards fleet expansion. © TradeWinds.no.
Wave of piracy descends on oil port in Indonesia
MALAYSIA - There has been a sustained outbreak of piracy at the Indonesian oil port of Balikpapan, with three incidents in just one week, according to the latest weekly report from the International Maritime Bureau. “At least two attacks were very similar in modus operandi and we would assume they were the work of the same gang,” said IMB official Pottengal Mukundan. All told there were seven piracy incidents in Balikpapan in 2003 and eight in the first nine months of this year before the latest round of outrages. “It is worrying as this is a tanker port,” added Capt Mukundan. © Informa Asia Publishing Ltd.
Johor to buy Seaport
MALAYSIA - Johor Port is spending M$403m (US$106m) to buy Seaport Worldwide, a company which owns land its plans to develop into a maritime and petrochemical hub. The southern Malaysian port will effectively acquire the entire equity of Seaport Worldwide from Indra Cita via a share subscription agreement. Seaport Worldwide owns 2,255 acres of land in five parcels at the mouth the Sungai Palai opposite the Port of Tanjung Pelepas. Both Johor Port and Tanjung Pelepas are majority owned by companies belong to Malaysian tycoon Syed Mokhtar. © Informa Asia Publishing Ltd.
Polaris sells bulker
MALAYSIA - Polaris Shipping, a 51% owned subsidiary of Halim Mazmin, has agreed to sell its 1993-built 149,475 dwt capesize bulk carrier Meridian Polarisfor M$142m (US$37.37m) in cash to Malta's Springwood Shipping. The ship is on charter to Japan's Nippon Yusen Kaisha and the sale is expected to be completed next April. Halim Mazmin said its share of the proceeds will amount to M$48.63m. "The cash generated from the proposed disposal together with the group's existing cash reserves would better place the group to capitalise on opportunities to acquire newer vessels." © TFInforma.com
Asian nations warned over cost of security measures
CHILE - Countries forming part of the Asia-Pacific Economic Co-operation Forum need to look closely at costs and legal consequences of implementing new security meas- ures, law firm Pysdens warned yesterday. The APEC Business Advisory Council has proposed that APEC economies create a public- private working group to develop jointly the Trans-Pacific Multimodal Security System as a pilot project incorporating measures such as the Container Security Initiative and the US Customs-Trade Partership Against Terrorism. Pysdens suggested that because of the need for private and state funding to implement some security measures compliance with legislation and contractual obligations might be more difficult for some APEC member states than others. "If the anti-terrorist measures impose penalties for breaches and these arise due to the lack of financial ability of a party to comply with the requirements, this could be an issue which may have to be dealt with in a court of law as the imposition of such penalties may be held to be unfair in terms of anti-competitive and human rights provisions," Pysdens said. Similar issues had been raised in European Union member states, and if there were differences between APEC member states these could have a detrimental effect on EU companies doing business with them. © TFInforma.com
Business as usual for tanker market by Terry Macalister's
The clampdown date on single-hull tankers is fast approaching but is there really much to worry about? With the bull tanker market showing no sign of slowing down and the holiday season fast approaching, it is tempting to start worrying about April 2005 when category-one tankers will be phased out and restrictions are imposed on the carriage of heavy-grade oil (HGO) in single-hullers. The last thing the world economy needs is difficulties carrying crude from areas of production such as the Middle East to prime users like the US, especially when oil is being traded at nearly $50 per barrel because of insufficient supply. But are we going to see shipowners giving up opportunities to make millions out of soaring freight rates and retire their tonnage? And if all the vessels are suddenly taken out of service, surely there will be shortages? After all there already is a shortage of ships. The last time I checked there were no VLCCs for immediate charter sitting in the Middle East Gulf. Chances are that no one will notice any disruption around April, partly because many tankers of the category-one variety have already gone to the breakers and partly because some will just continue trading. The fact of the matter is that no one really knows exactly which vessels will be affected by the new restrictions. There is no official tonnage list so only the shipowners know and they have not felt minded enough to inform any of the organisations that are trying to find out. In the UK there is a ban on using a mobile phone while driving but just look at the cars passing to see how many people disregard this legislation because they know it is very unlikely they will be caught. Tankers spend most of their lives on the open seas so the only way single-hullers will likely be caught is if they bump into port-state controls. There are also many loopholes in the HGO regulations in the 13G amendment to Marpol 73/78. The restrictions ban the movement of HGO in single-hull tankers of 5,000 dwt and larger after 5 April and in smaller ships after 2008. There is a bag full of exceptions following objections raised by Venezuela, Japan and Russia because of their own special national interests. For instance, single-hull tankers can trade after 2008 on domestic routes or in bilateral trades, which allows Venezuela to trade to the US, its main customer, and, incidentally, a non-signatory to Marpol. Does it really matter in safety terms if these smaller ships have some leeway? Overlooked research* by Clarksons into tanker accidents shows quite clearly that it might. The worst record for losses over the last decade has been run up by vessels of less than 10,000 dwt. For tankers over 60,000 dwt there have only been 14 losses since 1991, with only four of these occurring in the last seven years. In the smaller category of vessel the Clarksons' statistics show there have been 37 total losses since the start of the 1990s. "Based on the statistics in the table and on the need to rebuild public confidence in the industry, one conclusion is that the emphasis of new regulation and vetting procedures for tankers should target the smaller ships rather than granting exemptions for vessels under 5,000 dwt," said Clarksons. The rather more heart-warming aspect of the report is to remind environmentalists that the overall safety record of tankers is remarkably good. The number of ships lost as a percentage of the world fleet is minuscule and only two VLCCs have been lost in the last 10 years. [*Tankers in Transition 2004 (The end of the 1970s fleet) by Clarkson Research Studies e-mail: crsclarksons.] © TradeWinds.no.
Halim Mazmin sells capesize by Dale Wainwright
Malaysian shipowner Halim Mazmin is selling its 149,475-dwt bulker Meridian Polaris (built 1993) – its third major ship sale this month. Malta-registered Springwood Shipping is paying $37.4m for the capesize bulker, which is 49% owned by Japanese shipowner NYK. The Meridian Polaris, which was built by Taiwan’s China Shipbuilding Corporation (CSBC), is expected to be delivered by April 2005. Halim Mazmin said it expects to book a net gain of MYR33.2m ($8.7m) from the sale of the ship, while partner NYK will walk away with MYR31.9m. “The proposed disposal will enable the Halim Mazmin group to realise premium vale for the vessel,” the company said. It added: "The cash generated together with the group's existing reserves would better place us to capitalise on opportunities to acquire newer vessels." Polaris Shipping, a company controlled by Halim Mazmin and NYK, bought the ship in late 2000 from NYK subsidiary Galaxy Shipping for $23m. The ship, the former capesize bulker Saikyo, was acquired on the back of a ten-year charter to import coal into Malaysia. Earlier this month Halim Mazmin the MSC America and MSC Tasmania (both 2,680-teu, built 1993) to Mediterranean Shipping Co for a total of $60m. © TradeWinds.no.
Gas shipments tipped as MISC booster
MALAYSIA - Malaysia International Shipping Corp is set to gain from the surge in liquefied natural gas developments although the growth in rival fleets, particular in Qatar, could hurt longer term prospects, a researcher says OSK Research senior analyst Chris Eng said shipment of LNG would be among MISC’s biggest drivers due to expansion of gas facilities in the US, Europe and Asia. He singled out development of the LNG receiving terminal at Milford Haven in 2007 as being particularly important for the company. The facility is partly owned by Malaysian energy giant Petroliam Nasional and MISC is likely to win contracts to transport LNG from northern Africa to Britain. Mr Eng said MISC’s LNG fleet would grow from 18 to 29 vessels by 2009. He believed MISC’s other growth area next year would be its tanker business, especially its aframax and very large crude carriers. The company owns 40 aframax and product tankers including about 30 aframaxes acquired fter it bought American Eagle Tankers from Neptune Orient Lines in 2003. It has recently been disposing of its bulk carrier fleet with a package of sales to Precious Shipping. The Thai company, together with Malaysian Bulk Carriers, controlled by tycoon Robert Kuok Hock Nien, has expressed interest in the rest of MISC’s bulker fleet. © Informa Asia Publishing Ltd.
Asian nations get together to combat piracy and terrorism
SINGAPORE - A pan-Asia anti-piracy and counter terrorism initiative will be launched soon, Singapore’s defence minister, Teo Chee Hean, has revealed Speaking in Singapore at a meeting of defence personnel from more than 20 countries, Mr Teo said the Regional Co-operation Agreement on Anti-Piracy in Asia would “enter into force soon”. He said a significant feature of the scheme would be “the setting up of an information sharing centre which will provide more accurate reports of incidents of piracy and armed robbery against ships in the region”. The centre will have its headquarters in Singapore. The programme, which was initiated by the Japanese government, is supported by 16 countries in the region. They are from the 10 countries that belong to the Association of Southeast Asian Nations, including Malaysia, Indonesia, Singapore, Thailand, the Philippines and Vietnam, and six other nations including China, Japan, India and South Korea. Outlining the need for co-operation, Mr Teo said: “The regional waterways are among the world’s busiest and critical to the flow of global trade. “Any disruption to these sea lanes of communications would have implications far beyond the Asia-Pacific region.” © Informa Asia Publishing Ltd.
Terrorists and pirates could combine forces for Malacca attack by Sam Chambers
TERRORIST strikes on international shipping lanes are likely to "paralyse the international economy" Cedric Foo, Singapore’s minister of state for defence said while opening a two day maritime security conference today. He cited the nearby Singapore and Malacca Straits as being especially vulnerable. "Threats to maritime security, whether through the shutting down of ports or major waterways, can paralyze the international economy," Mr Foo said. The Singapore government has repeatedly warned that terrorists could easily link up with pirates to carry out an attack. In the event of a strike, insurance rates would leap and ships would have to take lengthy diversions, stretching the global fleet, the conference heard. "Globally, the terrorist threat is real and immediate," said Mr Foo, "to remind ourselves how our transport infrastructure can be used to perpetuate truly horrific attacks." Singapore, this summer, teamed up with neighbours Indonesia and Malaysia to carry out joint naval patrols. © 2004 Informa UK Limited
WTO 'rules against' EU shipbuilding subsidy claims
EUROPEAN shipbuilders have reacted with irritation to South Korean government claims that the World Trade Organisation (WTO) has ruled in their favour in the bitter dispute with the EU in a preliminary report. According to WTO rules, the Community of European Shipyards’ Associations (Cesa) declared, governments, were obliged to treat the interim report as strictly confidential. "The European authorities follow these obligations," Cesa said. The organisation said it had yet to see the report, adding that "what the WTO precisely concludes remains to be seen when the final report is released."European yards claim that guarantees by the Korea Exim Bank in 1998 and government bail-outs of shipyards were illegal subsidies.< The South Korean reports suggest that in a preliminary report the WTO said it did not recognise the government-led restructuring of the local shipbuilding sector following the 1997-1998 Asian currency crisis as illegal subsidies. "The latest ruling from the WTO, though tentative, supports our position that government-backed corporate restructuring cannot be seen as illegal subsidisation," the reports quote the Foreign Ministry as saying. A formal report will be issued by the end of next month, following which the EU may appeal. The EU took South Korea to the WTO in 2002, claiming that Korean shipbuilders received subsidies during restructuring at the peak of the currency crisis in late 1990s. In addition, the EU also complained that export financing and advance payment guarantees offered to Korean shipbuilders by the state-run Korean Export-Import Bank (KEXIM) should be categorised as subsidies. © 2004 Informa UK Limited
Asia’s first freight futures exchange
AN agreement to set up Asia’s first exchange for trading freight futures has been signed today between the Baltic Exchange and the Multi Commodity Exchange (MCX) of India. Peter Kerr-Dineen, chairman of the Baltic Exchange, said the two partners have entered into an agreement for settlement mechanism. He said freight markets worldwide are presently at historic highs and there has been unprecedented volatility in the last 12 months, both of which tend to be good for derivatives trading. MCX and Baltic are currently working on three products for India: Baltic Dirty Tanker Index Gulf-Japan, Baltic Dirty Tanker Index Middle East-Singapore (both for crude) and JE Hyde Australia-India for coal. MCX officials said the exchange would commence in the next three months. © Lloyd's Register - Fairplay Ltd 2004
Terrorists ‘could paralyse economy’
SINGAPORE - Terrorist strikes on international shipping lanes are likely to “paralyse the international economy”, said Cedric Foo, Singapore’s minister of state for defence, while opening a two-day maritime security conference yesterday. He cited the nearby Singapore and Malacca Straits as being especially vulnerable. “Threats to maritime security, whether through the shutting down of ports or major waterways, can paralyse the international economy,” Mr Foo said. The Singapore government had repeatedly warned that terrorists could easily link up with pirates to carry out an attack, he continued. In the event of an attack insurance rates would leap and ships would have to take lengthy diversions, stretching the global fleet, the conference was told. “Globally, the terrorist threat is real and immediate,” said Mr Foo. “This reminds ourselves how our transport infra- structure can be used to perpetuate truly horrific attacks.” Singapore teamed up with its neighbours Indonesia and Malaysia during the summer in an agreement to carry out joint naval patrols. © Informa Asia Publishing Ltd.
ASEAN owners 'must stand together'
MEMBERS of the Federation of ASEAN Shipowners’ Associations (FASA) have been urged to stay alert and be prepared for changes in the shipping cycle. “The shipping industry is, after all, cyclical in nature and has its peak and troughs,” chairman SS Teo told the annual meeting in Singapore on 25 November. However, he noted that rapid economic expansion in China and India provided the impetus for the sustained growth in world shipping and trade. He stressed the need for “unified and strong” ASEAN voice at international forums such as IMO and ILO and continuous interaction with other members of the global shipping fraternity. FASA members also expressed concern that ships and crews continue to be subjected to different standards of application of the ISPS Code. “In some instances these have brought delays, inconvenience and unnecessary financial burdens to the ship owners,” the federation has stated. The grouping has also called for clear policies by maritime administrations in relation to the phasing out of single-hull tankers. © Lloyd's Register - Fairplay Ltd 2004.
Key factors in developing multimodalism in Malaysia
An emphasis on supply chain and logistics management may prove beneficial in understanding the strategic role and realising the development of multimodalism in Malaysia. Nazery Khalid, a research fellow at the Maritime Institute of Malaysia (Mima) said multimodal involved the movement of goods through more than one transport mode using a single transport document. “It is a complex process in which functions and organisations often intersect at various levels. “Using a supply chain and logistics management approach can help unravel the intricacies of the process and provide an analytical framework in the further development and improvement of multimodal transport,” he said. He said this while chairing a session on Supply Chain, Distribution Management and Multimodal Transport at the National Multimodal Transport Conference 2004 in Kuala Lumpur last week. “Supply chain management involves systemic, strategic co-ordination of business functions towards improving the connection between producer and end-user. “Logistics management enables the fluent movement and storage of goods, services and information from point of origin to point of consumption. “Both are crucial in ensuring the effectiveness of processes and activities involved in delivering the products and services to the customer,” said Nazery. As such, he said focusing on the two areas could enhance the smooth flow of products, services and information to the end-user, a crucial factor in a multimodal environment. Nazery said multimodal was not the end of a development but an intermediate concept, which was increasingly being supplemented by value-added services. “To realise the concept of a seamless, coherent transport network envisioned by multimodalism, the various transport modes should not be viewed in isolation from one another. “Ports, airports, railway stations and public transport terminals should not be perceived as being merely individual terminal points but as logistic centres providing value-added services in a fluent, uninterrupted linkage with one another,” he said. © 1995-2004 Star Publications (Malaysia) Bhd
Yap calls on ports to foster smart partnerships with trade unions
Ports should make a paradigm shift in doing business and foster smart partnerships with trade unions towards a borderless world in the new era of globalisation. “Ports are one of the main areas where the effects of globalisation are profound and significant. “Therefore, we must discard the old ways of doing business and explore new ideas,” said Port Klang Authority chairman Datuk Yap Pian Hon. “Although many of the ports have begun to modernise their operations, there are still some teething problems here and there,” he said, adding that Asian ports ride on various stages of development. He said many ports were facing labour problems and these issues needed to be addressed in a conciliatory manner so that a win-win situation could be achieved. Yap said this at a dinner hosted by International Transport Workers Federation (ITF) Malaysia - Dockers Section at Menara MAA in Kuala Lumpur last week. He said it was important that the interest of the nation and harmony of the society at large be placed above all. “I urge our trade union leaders to foster a smart partnership with their respective port managements not only within the country but also the region. This is the new role of labour movement. “As ports deal with people from diverse nationalities and cultural backgrounds, there are bound to be occasions where differences in opinion may arise from time to time. “This is normal and all differences can be resolved amicably through sincere negotiations and discussions in a give-and-take manner,” he said. © 1995-2004 Star Publications (Malaysia) Bhd
Westport notches impressive record
Westport has attributed additional services introduced by existing lines and new joint services as the main driver behind its impressive record of 2.12 million TEUs handled for the period of January to October 2004 compared to 1.91 million TEUs for the same period last year, representing a growth of 11% in total. Westport executive chairman Tan Sri G. Gnanalingam said the growth was very much in line with the tremendous boom in East- and West-bound trade and was reflected in all key sectors for the January - October period of this year. “The port is IT driven and its operational efficiency is impressive at productivity rates of between 30 and 32 moves per hour, which is a significant contributor to its healthy growth.” One of the particularly booming sectors is the handling of local boxes, with its volume of 711,949 TEUs that was handled at Westport indicating a remarkable increase of 16% compared to last year's figure of 613,978 for the same period. “This surge in volume is attributed mainly to the increase in the import laden and repositioning of transhipment boxes. “Many shipping lines are now using Westport as a hub for redistribution to Bangkok, Yangon and Jakarta,” said Gnanalingam. “The impact of globalisation on the world economy has brought tremendous increases in the exchange of goods throughout the world especially in sea borne trade. “As a mega transhipment hub, the exponential growth of world trade has resulted in increased transhipment volumes at Westport,” he said. Besides external factors, Gnanalingam also cited the port's increased efficiency, high productivity and fast turnaround time as being crucial for the port's sustained growth. “Transhipment volume for the first 10 months of the year was recorded at 1.27 million TEUs. “Along with the positive growth of box volumes, the number of vessels that were calling on the port has also seen an increase with 3,638 vessels, both main line and regional liners, berthed at Westport for the same period. “Conventional volume contributed a 30% increase in the break-bulk area,” said Gnanalingam, adding that the total break bulk volume handled for the last 10 months increased from 1.33 million mt in 2003 to 1.73 million mt this year. “The healthy growth of this sector is attributed to the rising need for scrap and mixed steel. “As at October, Westport handled 93,714 RORO (Roll On Roll Off) units as compared to 86,135 units in 2003, an increment of 9%,” he said. “With the excellent growth achieved to date, Westport Malaysia is right on track to chalk up another record year of double-digit growth.” © 1995-2004 Star Publications (Malaysia) Bhd
MSE to enter LNG ship repair business
Malaysia Shipyard and Engineering (MSE) Sdn Bhd has decided to go into the LNG carrier repair business, in line with the changing business pattern in the ship repair industry spurred by the fast growing number of LNG carriers worldwide. MSE managing director and chief executive officer Wan Yusoff Wan Hamat said the yard had demonstrated its ability to innovate, reposition and transform itself to cater to this specialised niche market. “MSE has shown its commitment and has invested substantially to build up LNG repair capabilities and facilities in order to provide world-class services in the South-East Asian region to international LNG carrier owners and operators.” MSE, in a move to enhance its expertise in the repair of LNG carriers, signed a Technical Service Agreement two years ago with Gaz Transport Technigaz (GTT), the original makers of the membrane containment system. Wan Yusoff said MSE’s facilities and infrastructural development were recently commissioned with the setting up of a dedicated cryogenic workshop for refurbishment and repairs of LNG cryogenic equipment such as cargo pumps, pipes and valves. “The cryogenic workshop is air-conditioned and fully equipped with specialised tools, equipment, testing kits and specific work procedures and manned by highly trained engineers and technicians. “MSE has also set up and invar-welding workshop for continuous training of selected welders and also to maintain their unique skills. “Their dedicated LNG team has also successfully designed a prototype portable global test control room (GTCR) for hook-up on board LNG carriers at the yard or at any port required by the owners,” he said. Earlier this month, MSE redelivered the Puteri Firus after a full-scale dry-docking repair at its yard. This was the first time the 130,000 cubic meter vessel, one of the Puteri series with a No. 96 membrane type cargo containment system, was dry-docked outside Japan. The operations included, among others, removal and overhauling the cryogenic Ebara pumps, cryogenic Bernard valves, Cryostar gas compressors and global tests with the yard's own prototype global test control equipment. Other major work completed within the dry-docking schedule were the Kawasaki Steam Turbine and Foster Wheeler ESD III Boilers and the hydroblasting of up to 35,000psi prior to the painting of the truck-deck void space. The vessel was successfully redelivered 16 days after its arrival at MSE. “We want MSE to be a global player in the LNG ship repair business. The resounding success of drydocking and repair of Puteri Firus is the start of this transformation,” said Wan Yusoff. © 1995-2004 Star Publications (Malaysia) Bhd