shipping industry update - june 2009

8/6/2019 Shipping Industry Update - June 2009

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IndiaShipping Industry

In this issue:

Effects of Recession:

Overseas shipping &logistics firms droppinganchor in Indian waters

Chennai Port records afall in cargo throughput

Alang set to break downits 5,000th ship

With prices sinking by 40pc second-hand shipsbecome hot buys

Growth, Expansion andDevelopments:

Bharati Shipyard to buymore shares of GreatOffshore

Passenger ships rootingfor direct Dhaka-Kolkatashipping route

Petroleum coke unloadingrecord set at Vizag Port

Gangavaram port provesmettle in coal discharge

GE Shipping deliversHandymax ship

HSL to float first of sixvessels for Good EarthMaritime this month

Samsara becomes 1stliner shipping agency toopen offices in Jalandhar

& Chandigarh

SCI places orders for 2AHTSVs with CochinShipyard

Maersk Logistics &Damco to combine as newmarket force

Shipping Industry Updates

Issue No 6

June 2009

Effects of Recession:

Overseas shipping & logistics firms dropping anchor in Indian waters

Hit by the global economic crisis, oveRs.eas shipping and logistics companies

are looking at India for business opportunities. During the last two months, at

least three global shipping companies have dropped anchor to tap the market

in the country. Indeed, even several who were here earlier are now planning

to expand their presence. Doehle Danautic Logistics (DDL), part of the

Hamburg-based Peter Doehle Group, started its Indian operations in March.

More

Chennai Port records a fall in cargo throughput

The ongoing slump in the manufacturing sector has pulled down the

throughput of project cargo at Chennai Port. Weak demand in the oveRs.eas

market since the past few months has resulted in the countrys manufacturi ng

sector nearly stalling its production to prevent inventory pile up. This

slowdown in commodity trading has consequently jolted the cargo handling

sector in the country, with all the major ports witnessing an acute shortage in

project cargo handling consignments.

More

Alang set to break down its 5,000th ship

Shipbreaking activities are in full swing at the worlds largest shipbreaking

yard, Alang, even as the world is passing through an economic downturn. In

fact, it is the meltdown that has driven more ships to this scrapyard because


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Panprojects executingmajor ODC contract forBombardier

SCI to hike freight rate onISE service & BAF

GE Shipping takesdelivery of LR1 ProductfTanker

Security aspects of ports& shipyards beingreviewed

Mercator to buy 3 bulkvessels

MSC to effect raterestoration from July 1

SCI to apply BAF onSMILE service

SCI, ONGC planning torevive JV, hire consultant

SCIs expansion plan

staysHajara

CoPT to developdedicated terminal forLakshadweep ships

ABG Shipyards Q4 profitrises by 13 pc

ABG, Bharati slug it outfor Great Offshore pie

SCI extending SMILEservice to Port Pipavavfrom July 14/15

Despite downturn, VCTPLtakes confident strides

MFC uses multi-modelmode for ODC delivery

Wartsila India to operate& maintain dry dockfacility at Paradip Port

Mundra Ports latestfacility for car carriersinstalled by Lift & ShiftIndia with precision

International Updates:

Underemployed shipsbecome warehouses forempty boxes

CMA CGM announces raterestoration on Asia-Europe trades

Baltic Dry Index surges by5.4 pc

of the diminishing global trade which has made the cost of underutilized or

idled ships prohibitive. Some 130 ships are being broken simultaneously now.

And the yard is expected to break its 5,000th ship during the current fiscal,

with 4,804 ships already having been demolished here.

More

With prices sinking by 40 pc second-hand ships become hot buys

The global economic downturn may have sent the ex-im trade into a tizzy,

and sent freight rates crashing with an excess of shipping capacity chasing

diminishing cargos, but, according to maritime observers, the glut of carrying

capacity has sent prices of used ships nose-diving by as much as 40 per

cent, giving scope for shipping companies in countries like India to augment

capacity and tonnage.

More

Growth, Expansion and Developments:

Bharati Shipyard to buy more shares of Great Offshore

MUMBAI: Bharati Shipyard Ltd. will acquire additional shares of Great

Offshore Ltd.up to 20 per cent of its paid-up equity share capitala

company release said.

More

Passenger ships rooting for direct Dhaka-Kolkata shipping route

A new business opportunity is likely to present itself for the passenger

shipping companies in Kolkata. A parliamentary panel in Dhaka has

recommended launching a direct passenger shipping route between Dhaka-

Kolkata in a bid to boost regional tourism and strengthen trade relations

between India and Bangladesh.

More


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VLCCs being booked justto store diesel

MaerskLine to effect ratehikes from July & Sept.

EU preparing proposals tocap shipping emissions

Worlds largest bunkertanker launched

Singapore promotesintelligent port & shippingservices

Baltic Dry Index postssteepest fall since April

OOCL wins Best LinerOwner/Operator Award atSeatrade Asia function

Foreign Tie-up:

Rare European Unionhonour for IRS

Government Supportsand Actions:

High court ruling to comehandy to importerscaught on IE code muddle

Newly appointed shippingminister firm onSethusamudram Project

UPA to bring back pastglory of Kolkata Port trust

Shipping Ministry toaward Rs. 3,300-crprojects in 100 days

Trinamool win to infuse

new life into Haldia port

Corpus for tonnageacquisition mooted

PPP port projects to comeunder MoS scanner

MoS panel examiningways to improve MajorPorts efficiencies,capacities & earnings

Others:

MISC refitting boxship asarmed escort to combatpirates

Pirates board & make offwith engine parts

InterManager coming togrips with criminalisationof crew

VCT reserves plot for

Petroleum coke unloading record set at Vizag Port

Visakhapatnam Port has established an all-time record in unloading of

petroleum coke in bulk in a day when 17,270 tonnes were discharged from

the vessel m.v. Crowned Eagle at EQ-8 berth on May 31. This surpassed the

previous best discharge of 17,003 tonnes that was established from the

vessel m.v. B. K. Ace on December 17, 2008.

More

Gangavaram port proves mettle in coal discharge

Gangavaram port, which has the deepest draught among ports in the country,

has proved its mettle by discharging a record 71,808 tonnes of non-coking

coal in a single day from a vessel, according to a press release. The vessel,

m.v Go Patoro, was carrying the cargo for Adani Enterprises. It was the third

fully-laden Capesize vessel the port has handled so far, the release

elaborated.

More

GE Shipping delivers Handymax ship

Great Eastern Shipping Co. Ltd. (GE Shipping) has delivered its 2000-built,

45,659-DWT Handymax bulk carrier, Jag Reena to the buyers.

More

HSL to float first of six vessels for Good Earth Maritime this month

Hindustan Shipyard Ltd. (HSL) has completed construction of a 53,000-dwt

vessel for the Chennai-based Good Earth Maritime Ltd. The vessel, Good

Pride, will be floated later this month, it is learnt. HSL is building six such

vessels for the Chennai company and Good Pride is the first of the series.

More


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saplings

Mercator augmenting fleetin crunch times

Cochin Port strike over e-port fears ends

Vizag Port takes anothershot at promoting greenenvironment

InterManager to try forclean chit to releasedIndian seafarers.

Pirates infest new waters -German ship off Omanhijacked

Worlds biggest boxship

makes maiden call atJebel Ali

Shipping industry asksfor setting up of fund

Shipping and logisticscos oppose tariff revision

in Kochi Port

Mega port Vizhinjamteeters on the brink

VCTPL celebrating 6thanniversary tomorrow

Shipping cos harbouringcredit concerns

Dhoot could join battle forGreat Offshore

Stagnant tonnage awaitsBudgetary stimulus to

grow

Ports RegulatoryAuthority Bill proposesstiff fines for violatinginstructions

Shipbreakers plan tooppose ratification of IMOconvention

Lanco pulls out ofVizhinjam ICTT project

Zoom awaits govt.response: Vizhinjam port

LIC hikes stake in BharatiShipyard to 9.66 pc

Piracy occupies top placein agenda of Middle EastWorkboats conference

Samsara becomes 1st liner shipping agency to open offices in

Jalandhar & Chandigarh

Samsara Group has become the first liner shipping agency to set up offices in

Jalandhar and Chandigarh. The offices were inaugurated in the last week of

May under the inland banner of the Group, Hind Freight Services Pvt. Ltd.

With an existing office in Ludhiana, the additions make for three offices in

Punjab and 45 offices across India, for the Samsara Group.

More

SCI places orders for 2 AHTSVs with Cochin Shipyard

The Shipping Corporation of India (SCI) has placed orders. for 2 anchor

handling, towing and supply vessels (AHTSVs) with Cochin Shipyard Ltd. on

June 4 with the option of contracting two more vessels on similar terms within

6 months. SCI is committed to the development of the shipbuilding industry

and has selected Cochin Shipyard, one of the premier shipyards in the

country, to build these vessels.

More

Maersk Logistics & Damco to combine as new market force

On September 7, the A.P. Moller-Maersk Group will merge its supply chain

management activities branded as Maersk Logistics and its freight forwarding

activities branded as Damco, under the single brand name Damco. Mr. Rolf

Habben-Jansen, CEO of Maersk Logistics and Damco, says, "Under the new,

single brand, our primary drivers. remain our passion for customers. and our

dedication to service delivery.

More

Panprojects executing major ODC contract for Bombardier

Panprojects, the projects division of the Panalpina Group, along with its

Hamburg, Germany, office, is handling a prestigious project cargo movement


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on turnkey basis, i.e. door-to-door, also involving the inland transportation of

coaches, for the Delhi Metro Rail Corporation (DMR.C). The project is being

executed for Bombardier Transportation, one of the worlds leading

transportation companies operating in two industry-leading businesses,

aerospace and rail transportation.

More

SCI to hike freight rate on ISE service & BAF

The Shipping Corporation of India (SCI) has announced a hike in freight rate

on its India to Europe ISE service. The Rate Restoration/increase will be

$200/TEU on cargo moving ex-Indian Subcontinent to the Europe sector with

effect from July 1. According to a company release, this has been

necessitated by the burgeoning operational costs and to make the service

viable in the interest of the trade.

More

GE Shipping takes delivery of LR1 Product Tanker

Great Eastern Shipping Co. Ltd. (GE Shipping) has taken delivery of its

newbuilding Long Range One (LR1) Product Tanker, Jag Aparna. The

double-hull vessel of about 74,500-DWT was built at Koreas STX Offshore &

Shipbuilding Co. Ltd.

More

Security aspects of ports & shipyards being reviewed

Unit commanders of 15 Central Industrial Security Force (CISF) units here

are reviewing the threat (both from sea and land) perceptions and security

arrangements at all ports and shipyards in the country. The unit commanders

are also being briefed on the use of modern equipment and other security

best practices.

More


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Mercator to buy 3 bulk vessels

Mercator Lines, Indias second-largest private shipping company, is

expanding its capacity and is set to acquire three gearless post-Panamax

bulk carriers totaling 2.77 lakh dead-weight tonnage (DWT) on a charter

basis. Company sources said the investment would be around Rs. 500 crore

for this additional expansion of vessels.

More

MSC to effect rate restoration from July 1

The Mediterranean Shipping Co. (MSC) has announced a rate restoration on

the India to North Europe, UK, West and East Mediterranean, and Black Sea

trades. As per a release, it will be $200 per 20 GP and $400 per 40 GP/40

HC, effective from July 1.

More

SCI to apply BAF on SMILE service

In view of the continuous increase in bunker cost, the Shipping Corporation of

India (SCI) is applying a Bunker Adjustment Factor (BAF) of $35/TEU on its

SMILE service.

More

SCI, ONGC planning to revive JV, hire consultant

Shipping Corporation of India (SCI) and Oil and Natural Gas Corp (ONGC)

are planning to revive a proposed joint venture for services related to vessel

operations and are working on hiring a consultant for the purpose.

More


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SCIs expansion plan staysHajara

The Shipping Corporation of India (SCI)the countrys premier flag carrier

is determined to grow by acquiring new vessels as well as through other

expansion projects in order to serve the ex-im trade, stressed Mr. S. Hajara,

Chairman and Managing Director of SCI. He was addressing a press meet

here on Monday called to announce the companys audited financial results

for the year ended March 31, 2009.

More

CoPT to develop dedicated terminal for Lakshadweep ships

A dedicated terminal for Lakshadweep-bound passenger and cargo ships will

reportedly be constructed at Cochin Port at an estimated cost of Rs. 32 crore.

Five hectares of land have already been earmarked in the Cochin Port Trust

(CoPT) area (on the western side of Willingdon Island, between South Coal

Berth and Workshop Jetty) for this purpose.

More

ABG Shipyards Q4 profit rises by 13 pc

ABC Shipyard Ltd. has posted a net profit of Rs. 51.96 crore for the fourth

quarter of 2008-09, as against Rs. 46.05 crore in the corresponding period of

2007-08, working out to an increase of 12.83 per cent. For the entire fiscal,

ABG reported a net profit of Rs. 171.10 crore, as against Rs. 160.68 crore in

2007-08.

More

ABG, Bharati slug it out for Great Offshore pie

Great Offshore, a supplier of rigs used for offshore drilling, found itself at the

centre of a takeover battle on Tuesday, following an unsolicited bid by ABG

Shipyard to counter an ongoing open offer from Bharati Shipyard, which

retaliated by buying a large chunk of shares at a higher price in the morning,


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and by announcing a further revision of its bid price in the evening.

More

SCI extending SMILE service to Port Pipavav from July 14/15

The Shipping Corporation of India Ltd. (SCI) has announced that the port of

Pipavav will be included in its SMILE service to cater to coastal cargo from

Pipavav to Cochin and Tuticorin. In addition, the service will cater to the Far

East, Europe and Red Sea cargo. The current SMILE service rotation is:

Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Cochin,

Tuticorin, Colombo.

More

Despite downturn, VCTPL takes confident strides

Deal with Orissas Vedanta Aluminium may fetch project cargo . The Visakha

Container Terminal Pvt. Ltd. (VCTPL) is poised to cross the one-lakh-TEU

mark in 2009-10, Capt. Sriram Ravi Chander, Chief Operating Officer, said.

More

MFC uses multi-model mode for ODC delivery

Over dimensional cargo (ODC) and project cargo mover, Mumbai-based MFC

seems to be taking advantage of the booming project cargo market in the

country. Of late, it has employed multi-modal transport to service its

customers efficiently. Ever since it moved two IOC reactors, at Haldia, last

year, the company has bagged similar ODC consignments.

More

Wartsila India to operate & maintain dry dock facility at Paradip Port

Wartsila, a global leader in providing complete lifecycle power solutions and

services for the marine and energy markets, has been given a contract to


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operate and maintain the dry dock at Paradip Port. The facility, which offers.

various activities related to repairs. of mid-size and small-size ships, and is

spread over 1,800 square metres, is designed to cater to dry dock repairs.,

afloat repairs., modification, conversions and re-fit of ships.

More

Mundra Ports latest facility for car carriers installed by Lift & Shift India

with precision

Mundra Port now has a new link bridge to be used for the export of cars. The

contract for installation of this bridge was awarded to Lift & Shift India Pvt.

Ltd., which safely completed it on June 21-22, well within the stipulated time-

frame. The link span bridge, of 55 m length and weighing 350 tonnes, was

towed from Singapore on a pontoon barge.

More


Underemployed ships become warehouses for empty boxes

Nearly all the boxes aboard one of the worlds largest containerships were

reportedly empty and bound for Asia from Morocco. "Most will wait far longer

than they would have two years ago before returning full to Europe," said a

report. Shippers wanting to send goods from Asia to Europe have sometimes

offered a zero freight rate, providing they cover fuel and terminal handling

charges, the report explained.

More

CMA CGM announces rate restoration on Asia-Europe trades

In its continued effort to provide customers. with the same reliable and

efficient services they are accustomed to, the CMA CGM Group has decided

to restore freight rates in the Asia-Europe trade to a more sustainable level.

The new rate increases will apply to all cargo and commodities moving

westbound from Asia to Europe, and will be effective from July 1.

More


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Baltic Dry Index surges by 5.4 pc

The Baltic Dry Index, a measure of shipping costs for commodities, climbed

by 187 points, or 5.4 per cent, to 3,681 points, following demand for raw

materials from China. A broad-based improvement in commodities demand

has compounded the fact that Chinese steelmakers are buying more iron ore

overseas.

More

VLCCs being booked just to store diesel

Trading companies have booked two brand new very large crude carriers.

(VLCCs), in a rare move, just to store diesel off Singapore waters or North-

West Europe from this month, taking advantage of the contango market amid

a demand slump. Some 520,000 tonnes of South Korean diesel will be lifted

this month, and will be anchored in those areas on the vessels Front Queen

and Caeser, traders said.

More

MaerskLine to effect rate hikes from July & Sept.

MaerskLine has announced rate increases on its services between Europe

and the Middle East and South Asia. The trading conditions for carriers.

operating in these markets are still subject to unacceptable rate levels and the

situation is unsustainable in the longer term, the line said in a release.

More

EU preparing proposals to cap shipping emissions

The European Commission will take steps to restrict carbon emissions from

shipping in case the global maritime industry fails to come up with its

proposals soon, an EC official said. A conference in Copenhagen in

December is expected to agree to a successor to the UNs Kyoto Protocol on

fighting climate change, and the shipping industry faces mounting pressure to


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bring forward a system to curb emissions.

More

Worlds largest bunker tanker launched

After achieving the highest-ever bunker sales in May, Hong Lam Marine here

has launched the worlds largest purpose-built bunker tanker at the Marina in

Keppel Bay. The 22,000-DWT tanker Spectrum was built in collaboration with

Hong Lam and Toyota Tsusho Corp (TTC).

More

Singapore promotes intelligent port & shipping services

For the worlds busiest port here, technology is the watchword to ensure

efficient and round-the-clock operations and services. To enhance navigation

in Singapore ports waters. and its approaches, the Maritime and Port

Authority of Singapore (MPA) has been promoting the use of technology.

More

Baltic Dry Index posts steepest fall since April

The Baltic Dry Index, a measure of shipping costs for commodities, posted its

biggest weekly fall since April as demand for iron ore transporters weakened.

The index, tracking transport costs on international trade routes, was

unchanged on June 26 at 3,703 points, according to the Baltic Exchange. The

previous weeks 9 per cent slide is the worst since the week ended April 3.

More

OOCL wins Best Liner Owner/Operator Award at Seatrade Asia function

OOIL Chairman C. C. Tung bestowed Lifetime Achievement Award. Orient

OveRs.eas Container Line (OOCL) has been conferred the Best Liner

Owner/Operator Award at the Seatrade Asia Awards ceremony held here on


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June 25. The Seatrade Asia Awards are designed to celebrate and reward

excellence and innovation in the maritime sector across the region over the

previous 12 months.

More

Foreign Tie-up:

Rare European Union honour for IRS

European Union Commission has awarded prestigeous partnership to Indian

Registrar of Shipping (IRS) in an important and internationally collaborative

research project through a ceremonial meeting held on June 11-12 at the

University College of London.

More

Governement Supports and Actions:

High court ruling to come handy to importers caught on IE code muddle

In two landmark judgements on alleged fraudulent use of import-export code

(IE code) for importing goods at Nhava Sheva, Bombay High Court has

ruled that there is no rule or regulation for the Customs to hold back imported

goods for which duty is paid and where the IE code is valid.

More

Newly appointed shipping minister firm on Sethusamudram Project

GK Vasan, the newly appointed Shipping Minister of India, has declared that

the shipping industry will make every possible effort to implement the

controveRs.ial Sethusamudram Ship Canal Project (SSCP) for the benefit of

the larger segment of the shipping companies in Tamil Nadu. According toMr. Vasan, the Ministry of Shipping (MoS) is currently waiting for the RK

Pachauri committee to submit its report on various environmental issues that

have been raised by environmentalists in the country.

More


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UPA to bring back past glory of Kolkata Port trust

The UPA government would make take all possible steps to bring back the

past glory of Kolkata Port Trust (KoPT), minister of state for shipping Mukul

Roy said here on Saturday. A project to dress up the riverfront in key towns

along the Hooghly river seems to be also on the ministers mind.

More

Shipping Ministry to award Rs. 3,300-cr projects in 100 days

As part of the first 100-day 'action programme' of the government, the

Shipping Ministry would award projects worth more than Rs. 3,300 crore for

developing and upgrading container and cargo terminals at various ports in

the country.

More

Trinamool win to infuse new life into Haldia port

The dry spell at Haldia port looks likely to end with the Trinamool Congress

(TMC) pulling out all stops to revive the port and ensure that it does not turn

into a minor port. Haldia port, the second most important port in West Bengal

in terms of tonnage handling, was fast becoming unviable owing to escalating

maintenance costs over dredging.

More

Corpus for tonnage acquisition mooted

The Union Ministry of Shipping (MoS) has suggested the setting up of a

finance corporation or a dedicated corpus under a refinancing corporation to

provide funds to the shipping industry which is finding it extremely difficult to

source funds to acquire tonnage.

More


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PPP port projects to come under MoS scanner

As part of the Union governments 100-day programme, the Ministry of

Shipping (MoS) will review the various port projects proposed under the

public-private partneRs.hip (PPP) mode, the Union Shipping Minister, Mr. G.

K. Vasan, said.

More

MoS panel examining ways to improve Major Ports efficiencies,

capacities & earnings

Captive land use policy in sharp focus

A committee formed by the Ministry is reportedly considering proposals on a

revised land use policy for Major Ports, which are under the Union

governments jurisdiction. The existing policy discourages Major Ports from

taking decisions on issues that can improve their capacity and earnings.

More

Others:

MISC refitting boxship as armed escort to combat pirates

MALAYSIAs MISC Berhad is reportedly refitting one of its containerships as

an armed vessel to combat pirtes off the Somali coast in the Gulf of Aden.

After pirates seized two of its ships, the ocean carrier had decided to take

effective steps against the buccaneers.

More

Pirates board & make off with engine parts

Pirates boarded the Panama-registered bulk carrier Garnet outside port limits

(OPL) anchorage off Tanjung Ramunia and Tanjung Ayam on the south-east

coast of Johor and made off with some engine parts.

More


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InterManager coming to grips with criminalisation of crew

InterManager, the international trade association for in-house and third party

ship managers, has underlined its commitment to ridding the industry of crew

criminalisation by creating an industry-wide think-tank that it hopes will

translate its findings into international law.

More

VCT reserves plot for saplings

The Visakha Container Terminal Pvt. Ltd. (VCTPL) has observed the World

Environment Day by reserving an area of 100 x 10 metres to plant saplings.

Mr. M. Ponnuswamy, Commissioner of Vizag Customs, inaugurated the

function by a symbolic planting of a sapling.

More

Mercator augmenting fleet in crunch times

Even as the shipping industry is grappling with the economic downturn by

either disposing of some of their fleet or cancelling orders for newbuildings,

Mercator Lines Ltd. is reportedly planning to acquire three gearless post-

Panamax bulk carriers at a cost of around Rs. 500 crore.

More

Cochin Port strike over e-port fears ends

The trade unions at Cochin Port have called off the agitation following an

agreement reached with the Port management on June 8. The workers were

agitating against the new manning scales recommended by the National

Industrial Tribunal Award and implemented by the Cochin Port Trust (CoPT).

More


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Vizag Port takes another shot at promoting green environment

The Visakhapatnam Port Trust (VPT) celebrated the World Environment Day

recently with the VPT Chairman, Mr. Ajeya Kallam, launching the dust

pollution mitigation work. He inaugurated the pump house which has a

1,00,000-litre capacity groundwater tank and a water filling station which

allows lorries to sprinkle water over the iron ore stacks and on roads in the

ore handling complex (OHC) area to control dust pollution from the iron ore

plots.

More

InterManager to try for clean chit to released Indian seafarers.

The release of Capt. Jasprit Chawla and Chief Officer Syam Chetan of the

Hebei Spirit last week, after an enforced stay of 551 days in Korea, some of it

in jail, has been hailed by the global shipping industry. The two officers had

been incarcerated following the Hebei Spirit spilling oil after a collision with a

Samsung vessel in December 2007 off the Korean coast, an accident which

most agree was the fault of the latter.

More

Pirates infest new waters - German ship off Oman hijacked

SOMALI pirates have seized a German-owned cargo ship, Charelle, off

Oman, the first recorded attack in waters far from their usual Somali coastal

habitat. "This is the first case outside normal operations area of the pirates,"

remarked Lt. Cmdr. Alexandre Fernandes of Portugal aboard the frigate

Corte-Real, part of the North Atlantic Treaty Organisations (NATO) flotilla

deployed against the pirates.

More

Worlds biggest boxship makes maiden call at Jebel Ali

THE 11,000-TEU Emma Maerskthe worlds largest containeRs.hip


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reportedly called in at Jebel Ali port for the first time. The Emma Maerskis

nearly 400 metres long and 56 metres wide, with 30 cabins on its 22 floors.

More

Shipping industry asks for setting up of fund

The shipping industry on Sunday asked the government to set up a fund to

help the industry to get finances for projects with loans increasingly drying up.

The Indian shipping industry finds it difficult to raise money from the global

market because of the global economic crisis triggered by the collapse of

Lehman Brothers in September 2008.

More

Shipping and logistics cos oppose tariff revision in Kochi Port

A general tariff adjustment decision taken by the Kochi port authority has

irked shipping companies and logistics service providers (LSPs) operating in

the port. In order to resolve the issue, the Tariff Authority of Major Ports

(TAMP) had called a meeting of shipping and logistics firms and the terminal

operator on June 20 in the ports premises.

More

Mega port Vizhinjam teeters on the brink

Keralas infrastructure sector appeared on the brink of a major setback today

as its dream project of the Vizhinjam container terminal here seemed to teeter

on the brink, with unconfirmed reports that the winner in the original bid,

Lanco Kondapalli Power had opted to withdraw from the project.

More

VCTPL celebrating 6th anniversary tomorrow

The Visakha Container Terminal (VCT) here is celebrating its 6th anniversary


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on June 26. The celebrations will begin with a Pooja at 0900 hrs. A blood

donation camp has been organised on Friday between 08.00 hrs. and 12.00

hrs. Mr. Ajeya Kallam, Chairman of the Visakhapatnam Port Trust (VPT), will

inaugurate this camp at 08.00 hrs. at the VCT premises.

More

Shipping cos harbouring credit concerns

The bleak market scenario has dashed the hopes of Indian shipping

companies who were in expectation of an imminent revival. With commodity

trading picking up slightly in the domestic market and major ports in the

country showing improvements in cargo throughput, the shipping companies

in India were anticipating normalcy to resume soon.

More

Dhoot could join battle for Great Offshore

The battle for Great Offshore is likely become more intense now as Videocon

Chairman Venugopal Dhoot has dropped hints that he could join the race for

the integrated oilfield services provider. "I would not sell my 3 per cent stake

in Great Offshore.

More

Stagnant tonnage awaits Budgetary stimulus to grow

Domestic shipping tonnage has remained flat during the last five months of

this calendar year, thanks to the funds crunch and the global recession.

Although, the number of ships in the national fleet has marginally increased,

the gross tonnage (GT) has hovered around 9.3 million tonnes during

January-May.

More


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Ports Regulatory Authority Bill proposes stiff fines for violating

instructions

The proposed Ports Regulatory Authority Bill, when implemented, will fine

Port authorities and private operators up to Rs. 1 crore if they violate orders of

the port regulator, it is learnt. At present, the maximum penalty is just Rs.

10,000.

More

Shipbreakers plan to oppose ratification of IMO convention

Indian efforts to approve and ratify the latest International Maritime

Organisation (IMO) convention on ship recycling, which, according to the

agreement, should start with right earnest from August, is not going to be a

smooth affair.

More

Lanco pulls out of Vizhinjam ICTT project

Lanco Infratech Ltd. here has withdrawn from the proposed Vizhinjam

international container transhipment terminal (ICTT) "due to long delays", Mr.

V. Srinivas, Director, Corporate Affairs, Lanco Infratech, has announced.

More

Zoom awaits govt. response: Vizhinjam port

Over a week after a wave of rumours and speculation lashed the prospects of

the Rs. 5,340-crore Vizhinjam container transshipment terminal near here,

Mumbai-based Zoom Developers is still awaiting the result of the re-

evaluation of the company's bid by a committee set up by the state

government.

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strategy. As reported recently in Exim India, the company will soon open offices in Jamshedpur,

Ludhiana and Ahmedabad. The Norway-based Hoegh Autoliners, in which A.P. Moller-Maerskhas a

37.5 per cent stake, also proposes to open its office in India. Sources in the industry said that the

vehicle transportation firm would be commencing its services soon and proposes to make this country

as its South Asian base. AET Tanker Holding Sdn Bhd of Malaysia has opened a ship management

office in Gurgaon and may open its ship-owning subsidiary in this country in due course.

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Chennai Port records a fall in cargo throughput

Times Shipping Journal 08 June, 2009

The ongoing slump in the manufacturing sector has pulled down the throughput of project cargo at

Chennai Port. Weak demand in the oveRs.eas market since the past few months has resulted in the

countrys manufacturing sector nearly stalling its production to prevent inventory pile up. This slowdown

in commodity trading has consequently jolted the cargo handling sector in the country, with all the major

ports witnessing an acute shortage in project cargo handling consignments. The ongoing crisis has also

impacted Chennai Port - the largest project cargo handling port in the country. The mid-sized shippingcompanies which operate from Chennai Port have also suffered huge losses due to dip in cargo

throughput. D. Kumaresan, Director, UNI Logistics Pvt. Ltd., a mid-sized logistics company in Chennai,

says, With a number of large and mid-sized manufacturing units located in and around Chennai

slowing down their import and export activities, the project cargo traffic at the port has dropped

significantly in the past few months.

The Chennai port recorded a bumper year in 2007-08 due to the boom in the Indian manufacturing

industry. However, in 2008-09, Chennai Ports cargo throughput, which includes heavy machinery and

boilers for various industrial units, plunged by nearly 68% to 86,332. AV Abdullah, Senior Manager of

YK Shipair Travel & Cargo Agencies, a mid-sized shipping and forwarding company in Chennai, cites

another reason behind Chennai Ports negative performance. According to him, Several large

manufacturers of wind turbine blades earlier used Chennai Port to export their products to countries

such as the UK, South Africa, Belgium, Korea, the UAE and Australia. However, in the second half of

the last financial year, some of these companies have started to export their consignment from the New

Mangalore port. This has significantly affected the throughput at Chennai port.

Over the years, Chennai Port has handled the project cargo of several leading companies including

Bharat Heavy Electricals, Suzlon Energy, BGR Energy Systems, Diamond Engineering and Bharat

Earth Movers.

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Alang set to break down its 5,000th ship

Exim News Service 08 June, 2009

AHMEDABAD: Shipbreaking activities are in full swing at the worlds largest shipbreaking yard, Alang,

even as the world is passing through an economic downturn. In fact, it is the meltdown that has driven

more ships to this scrapyard because of the diminishing global trade which has made the cost of

underutilized or idled ships prohibitive. Some 130 ships are being broken simultaneously now. And the

yard is expected to break its 5,000th ship during the current fiscal, with 4,804 ships already having beendemolished here. The yard had recycled as much as 1.94 million light displacement tonnage (LDT)

during 2008-09, 174 per cent more than in 2007-08.

The Alang yard had since 1982 recycled a record number of 348 ships in 1997, 347 ships in 1998 and

361 ships in 1999.

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With prices sinking by 40 pc second-hand ships become hot buys

...but money remains major problem


MUMBAI: The global economic downturn may have sent the ex-im trade into a tizzy, and sent freight

rates crashing with an excess of shipping capacity chasing diminishing cargos, but, according to

maritime observers, the glut of carrying capacity has sent prices of used ships nose-diving by as much

as 40 per cent, giving scope for shipping companies in countries like India to augment capacity and

tonnage. According to reports, shipping companies are planning to buy vessels from the second-hand

market, instead of going in for newbuildings. Industry experts assert that the time is ripe to acquire

ships, with predictions that the prices might fall even further. At present, a five-year-old very large crude

carrier (VLCC) is priced around $84 million, whereas last year, it cost about $150 million.

Similarly, the price for a Capesize vessel has fallen to $53 million, from a high of $150 million in 2008.

Analysts say that asset prices in the second-hand market have crashed to half or even less of their

peak rates of last year due to an oversupply situation, a big dip in freight rates and the credit crisis. Dry

bulk shipping freight rates have dropped to 4,000 points in June, from last years 12,000 points. "There

is a huge possibility of distress sales of vessels due to the current downturn. Hence, we are mostly

planning to acquire ships from the second-hand market, which will be mainly for our offshore

operations," indicated a domestic player. Nevertheless, the availability of funds remains a handicap to

buying ships. Even the oveRs.eas banks are in a wait-and-watch mode. "This is a good time to buy.

Though we are not sure, prices may go down further. But the biggest challenge right now is getting

funds as banks have very little appetite for the shipping sector," explained another shipping industry

veteran.


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In line with the industrys prediction, one shipyard admitted that while its order book is full, new orders

are not forthcoming now. "The second-hand market is a viable option, as the vessel prices have gone

down, but that is happening more in the cargo segment rather than in the offshore vessel segment.

"Still, this year, we have seen a decline in new orders," the company official explained. According to

some industry experts, even newly-placed orders can be negotiated under the present circumstances.

"Taking into consideration the current situation, there is a greater possibility of negotiations for newly-

placed orders. However, for immediate requirements, people will look at secondary market as the

newbuildings will only be delivered after 3-4 years," said an observer. "Negotiation of prices is going on,

and the contracts for ships that have been placed in the last 6-9 months, are facing greater pressure for

renegotiation," he elucidated.

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Growth, Expansion and Developments:

Bharati Shipyard to buy more shares of Great Offshore


MUMBAI: Bharati Shipyard Ltd. will acquire additional shares of Great Offshore Ltd. up to 20 per cent

of its paid-up equity share capitala company release said.

A top executive of the company said, "Considering the potential of offshore services business, we have

decided to increase our investment in Great Offshore. This acquisition will provide enhanced stability to

the existing management in Great Offshore and maximise shareholder value for both companies."

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Passenger ships rooting for direct Dhaka-Kolkata shipping route

Times Shipping Journal 01 June, 2009

A new business opportunity is likely to present itself for the passenger shipping companies in Kolkata. A

parliamentary panel in Dhaka has recommended launching a direct passenger shipping route between

Dhaka-Kolkata in a bid to boost regional tourism and strengthen trade relations between India and

Bangladesh. Though there used to be a direct waterway connecting Dhaka and Kolkata earlier, it was

suspended along with other air and road transportation during the Pakistan era. However, though direct

bus and train services between India and Bangladesh has resumed, there is no movement along the

sea route. The proposal of resuming direct passenger ship service between the two countries has

raised the hopes of several mid-sized passenger shipping companies in Kolkata.


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elaborated. In April, 57,000 tonnes of coal were discharged in a day at the port, the release recalled.

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GE Shipping delivers Handymax ship


MUMBAI: Great Eastern Shipping Co. Ltd. (GE Shipping) has delivered its 2000-built, 45,659-DWT

Handymax bulk carrier, Jag Reena to the buyers. With the delivery of this vessel, the companys currentfleet stands at 37 vessels, with an average age of 10.1 years, aggregating 2.83 million dwt.

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HSL to float first of six vessels for Good Earth Maritime this month


VISAKHAPATNAM: Hindustan Shipyard Ltd. (HSL) has completed construction of a 53,000-dwt vessel

for the Chennai-based Good Earth Maritime Ltd. The vessel, Good Pride, will be floated later thismonth, it is learnt. HSL is building six such vessels for the Chennai company and Good Pride is the first

of the series. The contract for the vessels was awarded in 2005, which is estimated to cost $ 20.10

million. All the vessels will have to be delivered by 2011.

Good Pride will carry bulk cargoes like coal, ore, cement, alumina, bauxite, mineral sand, steel coils and

packaged timber. Designed for a speed of 14 knots, it has five cargo holds and is fitted with four deck

cranes.

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Samsara becomes 1st liner shipping agency to open offices in Jalandhar & Chandigarh

connects more effectively with ex-im trade in North


JALANDHAR: Samsara Group has become the first liner shipping agency to set up offices in Jalandhar

and Chandigarh. The offices were inaugurated in the last week of May under the inland banner of the

Group, Hind Freight Services Pvt. Ltd. With an existing office in Ludhiana, the additions make for three

offices in Punjab and 45 offices across India, for the Samsara Group. The Group has similar plans in

Amritsar in the coming months. With these developments, Samsara will be able to serve and service

customers north of the National Capital Region (NCR) much better and more intimately, as well as

strengthen the connectivity of the Northern region to the gateway ports with its private container rail

operations under Hind Terminals.

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asking questions, and engaging with them to build the right solutionsbecause we want to become and

remain our customers. preferred choice in the industry when it comes to selecting a reliable, high -

quality provider across all our services," he explains. Under the new brand, Damco will continue to offer

customers.counting more than 10,000 globally, including prominent multinationals from, among

others, the retail, apparel, electronics and chemicals industries, as well as small independent importers

and exportersa broad range of logistics services covering A-to-B forwarding and time-sensitive reefer

logistics to advanced supply chain management solutions and consultancy.

"To us, its important that we think beyond the norm and that we create competitive solutions for our

customers. regardless of their size. We believe we represent the best of multiple worlds: The locally

anchored and customer-focused forwarding business combined with the advanced and visionary

solutions of our supply chain solutionsall backed by the strengths, stability and capabilities of the A.P.

Moller-Maersk Group. We have a lot to offer, even if we today may be less well-known in the market

than some of our competitors," Mr. Habben-Jansen emphasises. In the interim period between June

and September 7, the supply chain services will continue to be delivered under the Maersk Logistics

brand, and the forwarding services will continue to be delivered under the Damco brand. Combined,

Maersk Logistics and Damco offer a broad range of supply chain management and freight forwarding

services to customers all over the world. Maersk Logistics and Damco have 10,500 colleagues in 272

offices, covering over 93 countries in Africa, Asia, North America, Europe, the Middle East and Latin

America.

In 2008, the combined business had a net turnover of $ 2.8 billion, shipped more than half a million

TEUs ocean freight, air freighted over 60,000 tonnes, and handled over 50 million CBMs for its supply

chain management customers. Maersk Logistics/Damco is an independent business activity within the

A.P. Moller-Maersk Group.

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Panprojects executing major ODC contract for Bombardier


MUMBAI: Panprojects, the projects division of the Panalpina Group, along with its Hamburg, Germany,

office, is handling a prestigious project cargo movement on turnkey basis, i.e. door-to-door, also

involving the inland transportation of coaches, for the Delhi Metro Rail Corporation (DMRC). The project

is being executed for Bombardier Transportation, one of the worlds leading transportation companies

operating in two industry-leading businesses, aerospace and rail transportation. In all, 424 coaches are

scheduled to be delivered before the inauguration of the Commonwealth Games in the Capital,

commencing in October 2010. Panalpina India, as the principal contractor, is responsible for providing

the end-to-end logistics solutions/services (both onshore and offshore) to Bombardier. A part of the

onshore services has been subcontracted to an Indian company, Allcargo Global Logistics.


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Eight coaches, urgently needed for testing by DMR.C, have already been airlifted by Panprojects on a

specially chartered AN-124 aircraft from Parchim, Germany, to New Delhi in February and May.

Moreover, 12 more coaches have arrived, via Hamburg, at Mundra Port as complete built units (CBUs).

The coaches that were brought in by air were successfully transported to DMR.C, Delhi, by road,

utilising hydraulic modular platform trailers. The coaches that arrived at Mundra were transported by rail

through special transition wagons provided by Bombardier. The first train, consisting of 4 coaches and

assembled at Bombardiers Savli facility, was inaugurated by the Chief Minister of Gujarat, Mr.

Narendra Modi, on June 5. The Panalpina Group operates a close-knit network with some 800 offices in

more than 160 countries.

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SCI to hike freight rate on ISE service & BAF


MUMBAI: The Shipping Corporation of India (SCI) has announced a hike in freight rate on its India to

Europe ISE service. The Rate Restoration/increase will be $200/TEU on cargo moving ex-Indian

Subcontinent to the Europe sector with effect from July 1. According to a company release, this has

been necessitated by the burgeoning operational costs and to make the service viable in the interest of

the trade. SCI will also be imposing a Bunker Adjustment Factor (BAF) of $202/TEU, reflecting the rise

in oil prices, from July 1. Due to the gradual increase in oil prices, it will be segregating the BAF and will

invoice it separately, the release adds. Also, due to the increased war risk premiums for vessels plying

via the Somalia coast and the Gulf of Aden, SCI will be levying a War Risk Surcharge (WRS.) of

$50/TEU with effect from July 1.

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GE Shipping takes delivery of LR1 Product Tanker


MUMBAI: Great Eastern Shipping Co. Ltd. (GE Shipping) has taken delivery of its newbuilding Long

Range One (LR1) Product Tanker, Jag Aparna. The double-hull vessel of about 74,500-DWT was built

at Koreas STX Offshore & Shipbuilding Co. Ltd.With this, the companys fleet of 38 vessels comprises

32 tankers (12 crude carriers, 19 product tankers, 1 LPG carrier) and 6 dry bulk carriers with an average

age of 9.9 years, aggregating 2.91-million DWT. Its current newbuilding order book comprises 8

vessels, aggregating 0.76-million DWT (2 Suezmax crude carriers, aggregating 0.32- million DWT and 6

dry bulk carriers, aggregating 0.44-million DWT).

Greatship Global gets an AHTSV

Greatship Global Offshore Services Pte. Ltd. (GGOS), a Singapore-incorporated subsidiary of

Greatship (India) Ltd. (GIL), a wholly-owned subsidiary of the Great Eastern Shipping Co. Ltd., has


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taken possession of Greatship Aditi, a 80T anchor handling tug-cum-supply vessel (AHTSV), from

Colombo Dockyard plc of Sri Lanka. The vessel has been financed via a sale and lease back

arrangement. Greatship Aditi is a DP2, FiFi1 full service vessel built to exacting specifications, and

capable of supporting offshore exploration and production around the world.

GIL and its subsidiaries currently own and/or operate six PSVs, five AHTSVs and one jack-up rig. GIL

and its subsidiaries also have an order book of 14 vessels and one rig under construction two

AHTSVs in Batam, four MPSVs in Singapore, two MSVs in India, four ROVSVs in Sri Lanka, two 150

TBP AHTSVs in Batam, and a premium 350 jack-up rig in Singapore. All Greatships vessels are built

to the highest standards of safety and operational efficiency. They conform to existing and envisaged

IMO and Class rules.

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Security aspects of ports & shipyards being reviewed


KOCHI: Unit commanders of 15 Central Industrial Security Force (CISF) units here are reviewing the

threat (both from sea and land) perceptions and security arrangements at all ports and shipyards in the

country. The unit commanders are also being briefed on the use of modern equipment and other

security best practices. The CISF Director-General will review the status of procurement of modern

security equipment, patrol boats, dog squads as well as bomb detection and disposal equipment. The

CISF personnel propose to hold a meeting with the senior Port officials on the security management.

Deputy Conservators of a couple of ports have also been invited to the meet.

At the proposed meeting, the Cochin Port Trust Chairman will give his views on the matter, especially

as he is the Chairman of the high-powered committee constituted to review security preparedness at

ports and shipyards.

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Mercator to buy 3 bulk vessels

The Economic Times 11 June, 2009

MUMBAI: Mercator Lines, Indias second-largest private shipping company, is expanding its capacity

and is set to acquire three gearless post-Panamax bulk carriers totaling 2.77 lakh dead-weight tonnage

(DWT) on a charter basis. Company sources said the investment would be around Rs. 500 crore for this

additional expansion of vessels. DWT refers to how much mass or weight of cargo that a ship can carry.

This development comes at a time when the shipping industry has been grappling with weak spot

freight rates on a year-on-year basis in both dry and tanker segments. For instance, in the tanker

segment like Suezmax, freight rates are currently at $2,580 per day compared with $84,790 per day a


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year earlier, say senior industry officials. Mercator has attempted to offset this difficult operating

environment by going in for long-term contracts with its key customers.

As with all its other dry bulk acquisitions, these additional vessels will also be under its Singapore-listed

subsidiary Mercator Lines (Singapore). Out of the three vessels proposed to be acquired, two are from

the New Yangzijiang Shipyard in China, which will remain with Mercator until 2014. The third vessel is

from Sungdong Shipyard, South Korea and will be on a charter with Mercator until 2020. The existing

capacity of the companys dry bulk fleet is approximately 1.2 million DWT. Mercators own fleet currently

comprises 12 tankers. with a combined capacity of 13.7 lakh DWT, 12 dry bulkers with a combined

capacity of 8.98 lakh DWT, four dredgers with a combined capacity of 31,854 cubic metres (CBM) and a

350 feet oil jack-up rig. Mercator has diversified its revenue stream, including coal mining in Indonesia

coupled with its dredgers which are on a long-term lease and its recent acquisition of oil rigs. A

combination of long-term contracts and a diversified revenue stream helped Mercator Lines

consolidated operating income, including that of its Singapore subsidiary, touch Rs. 2,210.5 crore in

FY09 compared with Rs. 1,477 crore for FY08 translating to a 50% growth.

The profit after tax (PAT) stood at Rs. 467 crore which was a 30% growth. It is estimated that Mercator

generates nearly 45-50% of its revenues in FY09 from long-term contracts. Also, the company

generated nearly 11.5% of its topline in FY09 from non-shipping activities.

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MSC to effect rate restoration from July 1


MUMBAI: The Mediterranean Shipping Co. (MSC) has announced a rate restoration on the India to

North Europe, UK, West and East Mediterranean, and Black Sea trades. As per a release, it will be

$200 per 20 GP and $400 per 40 GP/40 HC, effective from July 1. The rate restoration is being

implemented, the release says, in order to ensure that the high standards of MSCs service levels are

continuously maintained. "It has been MSCs endeavour to offer to all its valued customers a

comprehensive liner network and an efficient and reliable liner service at all times," the release

underscores.

MSC, the second-largest shipping line in the world, provides an unparalleled service network via

dedicated own offices throughout the world and remains a truly independent and private company able

to respond to quick market changes and implement long-term plans without unnecessary interference or

delay. As of end-May 2009, MSC was operating 410 container vessels, with an intake capacity of

1,488,000 TEUs.

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SCI to apply BAF on SMILE service


MUMBAI: In view of the continuous increase in bunker cost, the Shipping Corporation of India (SCI) is

applying a Bunker Adjustment Factor (BAF) of $35/TEU on its SMILE service. It will be effective

beginning with the vessel Indira Gandhi Voy 143, ETA Colombo June 19.

SMILE is a direct, independent service between the Subcontinent and the Gulf.

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SCI, ONGC planning to revive JV, hire consultant

PTI - 14 June, 2009

NEW DELHI: Shipping Corporation of India (SCI) and Oil and Natural Gas Corp (ONGC) are planning to

revive a proposed joint venture for services related to vessel operations and are working on hiring a

consultant for the purpose. "We will now work towards effecting a joint venture with ONGC on a fast

track basis. We would also hire a consultant soon," a senior official of the Navratna shipping companysaid. In 2006, SCI and ONGC had signed a memorandum of understanding to float the joint venture

company -- Offshore Marine Services (OMSL). OMSL was to provide "end-to-end solutions in vessel

operations" for ONGC as well as other oil and gas companies.

OMSL was to develop capabilities for acquisition, repair and maintenance of offshore floating units and

for undertaking repair and construction on long-term arrangement with various shipyards on preferential

terms. The official, however, declined to provide the details of the equity structure of the JV firm that is

being revived. In the proposed joint venture, OMSL, the two public sector undertakings were to have

24.5 per cent stake each, while PSA Marine, a wholly-owned subsidiary of the Singapore government'sPSA International, was to acquire 21 per cent stake. The remaining 30 per cent was to be held by

financial institutions. As per the earlier MoU, PSA Marine was to provide repair services to vessels.

PSA Marine, however, backed out from the venture in 2006 itself.

As per the agreements signed then, the upstream oil company would give its vessels on bare boat

charter agreement to OMSL and would retain the right of first refusal on their deployment. The JV firm

would acquire, own, maintain, operate and charter a range of offshore vessels and could also take non-

ONGC business, including acquiring vessels and other assets.

With SCI now holding the Navratna status, it would be able to pursue the JV project with greater

flexibility as the company's board has been given more powers to enter into ventures with both domestic

as well as foreign firms.

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SCIs expansion plan staysHajara

Exim News Service - 16 June, 2009

MUMBAI: The Shipping Corporation of India (SCI)the countrys premier flag carrieris determined to

grow by acquiring new vessels as well as through other expansion projects in order to serve the ex-im

trade, stressed Mr. S. Hajara, Chairman and Managing Director of SCI. He was addressing a press

meet here on Monday called to announce the companys audited financial results for the year ended

March 31, 2009. SCI posted impressive results for 2008-09, registering a 15.58 per cent increase in net

profit after tax (PAT) at Rs. 940.67 crore. Total income grew by 11.69 per cent to Rs. 4,561.83 crore,while profit from operations (before other income, interest and exceptional items) shot up by 25.51 per

cent in 2008-09 to Rs. 763.15 crore.

Earnings per share was Rs. 22.21 on a face value of Rs. 10 per share. A dividend of 65 per cent has

been proposed for 2008-09, subject to the approval of the annual general body meeting (AGM). Mr.

Hajara highlighted that the total owned fleet of SCI currently stood at 78 vessels of 5.03 million DWT,

including the 319,000-DWT VLCC and two large 4,400-TEU container vessels inducted last year.

Among the additions to the fleet in 2009-10 would be a 319,000-DWT VLCC and 2 MR. product tankers,

the latter being the first to be ordered from Chinese yards. Overall, SCIs order book as on date stood at

31 vessels, aggregating 2.19 million DWT and involving an outlay of Rs. 7,500 crore, Mr. Hajara

disclosed. While the company would continue to focus predominantly on the tanker/energy

transportation sector, it had plans to expand beyond shipping into areas like terminal management,

dredging and shipbuilding, with suitable partners, Mr. Hajara disclosed. SCI was also looking at being in

the high end of the offshore market, he added.

Mr. Hajara underscored that the companys long-term vessel acquisition plans remained unchanged,

despite the global economic downturn, though it had deferred a few projects from the last financial year

to the current one, which it was looking to revive in the second half of the year. As regards the liner

segment, Mr. Hajara and Mr. J. N. Das, Director, Liner and Passenger Services division, felt that the

sector had probably bottomed out and rates seemed to be stabilising, especially on certain trade lanes.

Mr. Das pointed out that SCI had integrated its liner services, which were no longer India-centric, with

services facilitated between ports in other regions. From India, it was looking at commencing services to

the East Coast of Africa and the US East Coast, depending on the right partners and circumstances, he

added.

The meet saw participation from all of SCIs DirectorsCapt. K. S. Nair (Bulk Carrier and Tanker

division), Mr. U. C. Grover (Technical and Offshore Services), Mr. B. K. Mandal (Finance), Mr. Kailash

Gupta (Personnel and Administration) and Mr. J. N. Das.

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CoPT to develop dedicated terminal for Lakshadweep ships


COCHIN: A dedicated terminal for Lakshadweep-bound passenger and cargo ships will reportedly be

constructed at Cochin Port at an estimated cost of Rs. 32 crore. Five hectares of land have already

been earmarked in the Cochin Port Trust (CoPT) area (on the western side of Willingdon Island,

between South Coal Berth and Workshop Jetty) for this purpose. A memorandum of understanding

(MoU) was signed between CoPT and the Lakshadweep administration for leasing of the land and

waterfront areas. The proposed terminal will have a 300-metre-long berth, a passenger waiting hall ofabout 1,100 sq. metres., cargo storage area of about 400 sq. metres. as well as vehicle parking area.

The terminal will have facilities like prayer halls, a bank counter, a tourist information counter, a first aid

centre, a snack bar, etc. tenders. for the project will be invited within a month and it is expected to be

completed by 2011. About 10 passenger vessels and several cargo vessels ply between Lakshadweep

Islands and Cochin and these vessels are at present moored at different berths of Cochin Port. The

dedicated terminal will, therefore, be a boon for the people of Lakshadweep who are dependent on the

mainlandabout 185 miles awayfor higher education, medical purposes, food items, fuel, consumer

goods, etc. CoPT has, therefore, decided to accord top priority to the construction of the dedicated

terminal.

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ABG Shipyards Q4 profit rises by 13 pc


MUMBAI: ABC Shipyard Ltd. has posted a net profit of Rs. 51.96 crore for the fourth quarter of 2008-09,

as against Rs. 46.05 crore in the corresponding period of 2007-08, working out to an increase of 12.83per cent. For the entire fiscal, ABG reported a net profit of Rs. 171.10 crore, as against Rs. 160.68 crore

in 2007-08. Income from operations in the fourth quarter increased to Rs. 370.86 crore from Rs. 276.68

crore in the same quarter of 2007-08. Mr. Dhananjay Datar, Chief Financial Officer, said that the total

order book position as on March 31, 2009 stood at Rs. 11,500 crore.

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ABG, Bharati slug it out for Great Offshore pie

The Economic Times - 24 June, 2009

MUMBAI: Great Offshore, a supplier of rigs used for offshore drilling, found itself at the centre of a

takeover battle on Tuesday, following an unsolicited bid by ABG Shipyard to counter an ongoing open

offer from Bharati Shipyard, which retaliated by buying a large chunk of shares at a higher price in the

morning, and by announcing a further revision of its bid price in the evening. This is a rare instance of


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an unsolicited bid - India Inc last saw a hostile takeover attempt in 2000, when Abhishek Dalmia

mounted an abortive bid to acquire Gesco. Bharati Shipyard, which earlier this month launched a 20%

open offer at Rs. 344 a share after acquiring just under 15% in Great Offshore, revised its offer price to

Rs. 403 a share a few hours. after rival bidder ABG Shipyard launched an unsolicited bid at Rs. 375 a

share. ET NOW, this newspapers business channel, first reported on the latest twist in the Great

Offshore saga early on Tuesday morning.

Bharati Shipyard managing director PC Kapoor said his company had bought 4.58% stake at Rs. 403 a

share from Ravi Sheth, a cousin of the former founder-promoter of Great Offshore, Vijay Sheth, through

block deals on Tuesday. Under Sebi rules, an open offer price is automatically revised upwards, if an

acquirer buys a single share at a higher rate during the tenure of the offer. As a consequence, Bharatis

new offer stands at Rs. 403 a share, said Mr. Kapoor. Mr. Kapoor told ET that Bharati would further

revise its offer after its next board meeting on June 30. We have so far acquired 19.5% stake in Great

Offshore for about Rs. 250 crore. We need almost the same amount of money to launch a 20% open

offer at a revised price. He did not rule out the possibility of a financial investor joining Bharati to fund

the revised offer. Mr. Kapoor did not think Bharati was stretching its balance sheet to acquire Great

Offshore. He said: Great Offshore is a strategic company for us. We have carved a niche market in

construction of vessels and rigs for the offshore industry, and Great Offshore is into the business of

providing support vessels and services required by the offshore industry. Its a nice fit for this business.

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SCI extending SMILE service to Port Pipavav from July 14/15


MUMBAI: The Shipping Corporation of India Ltd. (SCI) has announced that the port of Pipavav will be

included in its SMILE service to cater to coastal cargo from Pipavav to Cochin and Tuticorin. In addition,

the service will cater to the Far East, Europe and Red Sea cargo. The current SMILE service rotation is:

Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Cochin, Tuticorin, Colombo. The

new port rotation will be: Colombo, Cochin, Jawaharlal Nehru Port, Mundra, Jebel Ali, Mundra, Pipavav,

Cochin, Tuticorin, Colombo.

The Pipavav call will commence from the new voyage of Lal Bahadur Shastri voy 125 eta Pipavav July

14-15. The call at Pipavav is in the interest of SCIs valued customers in terms of providing an efficient

and reliable service for coastal as well as ex-im cargo, explains an SCI release. SCI has taken delivery

of a very large crude carrier (VLCC), m. t. Desh Vishal, from Daewoo Shipbuilding in South Korea, an

SCI press release said. Desh Vishal is the second of SCIs two VLCCs constructed at Daewoo.

Shipbuilding Orders for these vessels were placed in October 2005 and the first vessel, Desh Viraat,

was delivered to SCI in October 2008. With 162,412 gross tonnage and 321,137 DWT, it is the largest

vessel in the Indian Register. The new vessel is about 600 tonnes larger than Desh Viraat. It has been

classed with ABS and IRS. and has been built to comply with the latest and most stringent international


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regulations. With the country heavily dependent on import of crude oil, having tankers. under the Indian

flag provides vital energy security to the nation.

Energy transportation has continued to remain the core business segment for SCI and the induction of

this vessel in its fleet is expected to strengthen its position in the energy transportation sector. SCI has

a fleet of 79 vessels at present and acquisition of the vessel is in line with the companys strategy of

maintaining a modern and young fleet, the company has 30 vessels on order at present and has an

ambitious plan to order another 40 ships in 2-3 years.

Top

Despite downturn, VCTPL takes confident strides


VISAKHAPATNAM: Deal with Orissas Vedanta Aluminium may fetch project cargo. The Visakha

Container Terminal Pvt. Ltd. (VCTPL) is poised to cross the one-lakh-TEU mark in 2009-10, Capt.

Sriram Ravi Chander, Chief Operating Officer, said.

On the eve of the sixth anniversary celebrations of VCTPL here on June 25, he pointed out that the

terminal had made impressive strides during the last six years. During 2008-09, it handled 90,000

TEUs. Despite the economic downturn, VCTPL had been growing at 25 per cent per annum, he

observed. The terminal had started operations six years ago in the outer harbour as a joint venture

between DP World and United Liner Agencies of India Pvt. Ltd. During the first three years, the

progress was slow, but picked up after that. Now, the recession had impacted to some extent, he

admitted. Capt. Chander felt that Vizag was ideally positioned to develop into a hub for containerised

cargo on the East Coast. "We have signed a memorandum of understanding (MoU) with Vedanta

Aluminium at Jharsuguda in Orissa and the project cargo will be routed through our terminal. It is a shot

in the arm for us," he revealed.

Tobacco from Guntur was still going to Chennai Port and there were certain problems in attracting the

commodity to Visakhapatnam. But other commodities such as chillies and cotton were being exported

through Vizag, he stressed. He forecast a bright future for VCTPL once the economic situation

improved and special economic zone (SEZ) projects in the vicinity began operations. Mr. R. Ravi

Kumar, Vice-President of VCTPL, also spoke about the advantages of using the terminal.

Top

MFC uses multi-model mode for ODC delivery

The Economic Times - 29 June, 2009

Over dimensional cargo (ODC) and project cargo mover, Mumbai-based MFC seems to be taking


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advantage of the booming project cargo market in the country. Of late, it has employed multi-modal

transport to service its customers efficiently. Ever since it moved two IOC reactors, at Haldia, last year,

the company has bagged similar ODC consignments. Recently, it carried 400MT cargo from Hazira by

barge to Mumbai Port, and picked up another 200MT for its return leg from L&T, by a vessel. It has also

been using both rail and road for moving ODC steel plates within record time.

Top

Wartsila India to operate & maintain dry dock facility at Paradip Port


MUMBAI: Wartsila, a global leader in providing complete lifecycle power solutions and services for the

marine and energy markets, has been given a contract to operate and maintain the dry dock at Paradip

Port. The facility, which offers. various activities related to repairs. of mid-size and small-size ships, and

is spread over 1,800 square metres, is designed to cater to dry dock repairs., afloat repairs.,

modification, conversions and re-fit of ships. It includes a dedicated repair jetty for afloat repairs,

modifications, conversions and re-fit jobs with uninterrupted power supply and fresh water supply.

It has two overhead double hook cranes facilitating blasting jobs at both sides simultaneously. The dry

dock is 75 metres long, 15 metres wide and has a 6-metre draught. It includes a well-equipped

workshop to carry out repair activities. Wartsila has strong service network on the East Coast of India,

with offices at Kolkata and Secunderabad and a workshop at Visakhapatnam which can be leveraged

for operations at Paradip. Operating and maintaining the dry dock facility at Paradip Port is an extension

of Wartsilas services offerings in the ship services segment, and is in line w ith its strategy of being a

total service provider.

On the dry dock facility, Mr. Rakesh Sarin, Managing Director, Wartsila India, observed, "Wartsila

Indias existing ship repair services, combined with this in-house facility consolidates our position as a

total service provider. We are proud of all aspects of the new dry dock facility and feel it will be of great

benefit to the shipowners and managers. "Wartsila offers expertise and responsiveness to all our

customers, regardless of their equipment maker, in the most environmentally-sound way. "Key

customers, both marine and power plant customers, have recognised Wartsila as their preferred

services supplier, ensuring the availability and cost-efficient operations of their installation. "They benefit

from gaining their entire power system and a full range of services from one global supplier throughout

the product lifecycle.

"We are continuously broadening our range of services and adding valuable products and specialist

services to our portfolio. "This way, we also give support to the equipment on board of the vessels or at

installations, either becoming the OEM or providing non-OEM services in key-ports," Mr. Sarin

elaborated. Wartsila supports customers in the shipping industry throughout the lifecycle of their

installations by optimising efficiency and performance. The lifecycle services are provided for engine


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services, propulsion services, electrical and automation services, boiler services, operations and

management and training services.

Top

Mundra Ports latest facility for car carriers installed by Lift & Shift India with precision


MUNDRA: Mundra Port now has a new link bridge to be used for the export of cars. The contract forinstallation of this bridge was awarded to Lift & Shift India Pvt. Ltd., which safely completed it on June

21-22, well within the stipulated time-frame. The link span bridge, of 55 m length and weighing 350

tonnes, was towed from Singapore on a pontoon barge. After making all preliminary arrangements like

mooring, ballasting, planning and engineering, the bridge was raised by utilising 8 synchronised

hydraulic jacks, of 100-tonne capacity each, to a height of 600 mm to insert a similar number of heavy-

duty skid rollers of 100-tonne capacity, which were welded to the link bridge. The bridge was then

skidded off the pontoon by 20 m, with the use of heavy-duty prime movers and placed on to the new ro-

ro terminal jetty. After mooring the link bridge to the jetty, the pontoon was winched away from the jetty

to extend it by about 50 m, to put in place the pinlock arrangement of the link bridge with the pontoon

barge.

The operation entailed detailed engineering and coordination with the manufacturer of the bridge and

Mundra Port and Special Economic Zone (MPSEZ) authorities, which was vetted by an international

surveyor. Lift & Shift mobilised its team of installation experts to conduct the work smoothly. The

company also used 8 high-capacity ballast pumps to overcome the 7-m tidal variation. The bridge will

be operational by July and is expected to be very useful for exports by car manufacturers.

Top


Underemployed ships become warehouses for empty boxes


LONDON: Nearly all the boxes aboard one of the worlds largest containerships were reportedly empty

and bound for Asia from Morocco. "Most will wait far longer than they would have two years ago before

returning full to Europe," said a report. Shippers wanting to send goods from Asia to Europe have

sometimes offered a zero freight rate, providing they cover fuel and terminal handling charges, the

report explained. The combination of excess capacity and falling demand has caused the rates that

many transport operators can charge to slump, by as much as 90 per cent in some cases. Shipping

lines have been using their growing numbers of idle ships just to store empties, says another report.

Now, even the underemployed vessels are doing so.


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Surplus containerships have deckloads of empty boxes, figuring that it is cheaper to pay the handling

charges once empties are loaded aboard ships than to pay daily per-TEU storage fees at global

container yards. More than 400,000 containers sit empty and idle at Shenzhens Yantian terminal, and

in Hong Kong officials are looking to park hundreds of thousands more. "You will find similar situations

in Shanghai, other Chinese ports, Hong Kong and many ports around the world," a top official of the

Hong Kong Shippers' Council said. "You have idle containerships full of empty containers, sitting in

Singapore, Hong Kong, Shanghai and many other ports around the world. When cargo is not moving,

there is no demand for containers."

Exporters are now expressing concern that shipping lines will no longer be able to transport their goods.

Carriers are also claiming that current freight rates are not sustainable for them to stay in business. "I

think theyre definitely notsustainable. The rates were currently seeing are frightening," observed the

head of a global ocean transport company.

Top

CMA CGM announces rate restoration on Asia-Europe trades


MARS.EILLES: In its continued effort to provide customers. with the same reliable and efficient services

they are accustomed to, the CMA CGM Group has decided to restore freight rates in the Asia-Europe

trade to a more sustainable level. The new rate increases will apply to all cargo and commodities

moving westbound from Asia to Europe, and will be effective from July 1. The increased quantum will

be $300 per TEU. Additionally, CMA CGM will start, on the same date, to invoice separately the Bunker

Adjustment Factor (BAF) from the freight rate. CMA CGM has been constantly monitoring bunker

prices.

On July 1, the applicable BAF on the Asia-Europe trade will be increased from $281 per TEU to $333

per TEU, reflecting the evolution of oil prices in the international market. Finally, the Group may also

decide to implement a Peak Season Surcharge (PSS) on the same trade from August 1, intimated a

company release.

Top

Baltic Dry Index surges by 5.4 pc


LONDON: The Baltic Dry Index, a measure of shipping costs for commodities, climbed by 187 points, or

5.4 per cent, to 3,681 points, following demand for raw materials from China. A broad-based

improvement in commodities demand has compounded the fact that Chinese steelmakers are buying


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more iron ore overseas. Rental rates for Capesize ships, most commonly used to haul iron ore, added 8

per cent on June 1 to $73,122 a day, according to the Baltic Exchange. Panamax rental costs advanced

by 6.7 per cent to $24,801 a day, the report said. Capesize vessels normally haul about 175,000 tonnes

of cargo and Panamaxes are about half the size. Rental rates for the larger ships may continue climbing

because of port congestion, an analyst predicted.

Top

VLCCs being booked just to store diesel


SINGAPORE: Trading companies have booked two brand new very large crude carriers. (VLCCs), in a

rare move, just to store diesel off Singapore waters or North-West Europe from this month, taking

advantage of the contango market amid a demand slump. Some 520,000 tonnes of South Korean

diesel will be lifted this month, and will be anchored in those areas on the vessels Front Queen and

Caeser, traders said. Such floating volumes will be on top of the 530,000 tonnes being put in smaller

vessels of 80,000-100,000 tonnage off Singapore waters North-West Europe and West Africa. The

period for storage on a VLCC lasts from three to 12 months. Some players. recently booked one for 270

days.

Low freight rates and a contango market structure, which has been in place for a year, support such a

trade strategy. The products are stored when their prices are low, on hopes of selling them off later

when the rates rise, traders. stated. "You wont clean up a used VLCC to store products," a shipping

source commented. "There is no demurrage involved when it comes to storage. Its a fixed rate," a

shipping dealer explained. He added that the low rate for the Aframaxes, or the 80,000-100,000

tonnage, was about $20,000 per day for up to four months of storage.

As for VLCCs, the daily charges for storage were $35,000 with a last deal sealed at a rate of $23,000

each day, traders. elaborated. "The credit crunch and a demand collapse, as well as cheap ships and

full on land storage... encourage floating storage," another trader said.

Top

MaerskLine to effect rate hikes from July & Sept.


COPENHAGEN: MaerskLine has announced rate increases on its services between Europe and the

Middle East and South Asia. The trading conditions for carriers. operating in these markets are still

subject to unacceptable rate levels and the situation is unsustainable in the longer term, the line said in

a release. South Asia (India, Pakistan, Bangladesh, Sri Lanka) to the Mediterranean and North Europe:


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TTC to better manage its product supply chain and bring it into the big league, hopefully among the top

three bunker suppliers.

On the back of the booming bunker industry, the Maritime Port Authority (MPA) also announced a new

financial assistance scheme for bunker surveying companies. The scheme will grant bunker surveying

companies a one-time 30 per cent financial relief on the assessment fee when they receive their

accreditation credentials with the Singapore Accreditation Council (SAC) under the Accreditation

Scheme for Inspection Bodies.

Top

Singapore promotes intelligent port & shipping services


SINGAPORE: For the worlds busiest port here, technology is the watchword to ensure efficient and

round-the-clock operations and services. To enhance navigation in Singapore ports waters. and its

approaches, the Maritime and Port Authority of Singapore (MPA) has been promoting the use of

technology. These areas of technology uses include:

Electronic Chart Display and Information System (ECDIS) and its safety functionalities, used in

conjunction with electronic navigational charts. Port Operations Control Centres (POCCs) harness

technologies such as the Vessel Traffic Information System to monitor and broadcast navigational

warnings to ships in the Singapore port and Singapore Strait.

Communication is made even easier by an Automatic Identification System, which allows easy contact

between ships and the control centres. "Developing intelligent port and maritime service solutions is an

integral part of Singapores growth as an international maritime centre," said the MPA Chief Executive,

Mr. Lam Yi Young. In addition to the state-of-the-art POCCs, MPA has also developed online facilities to

streamline documentation and business processes.

Top

Baltic Dry Index posts steepest fall since April


LONDON: The Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest weekly

fall since April as demand for iron ore transporters weakened. The index, tracking transport costs on

international trade routes, was unchanged on June 26 at 3,703 points, according to the Baltic

Exchange. The previous weeks 9 per cent slide is the worst since the week ended April 3. Rates to hire

Capesize vessels fell by a steep 12 per cent to $78,945 a day during the week, while smaller Panamax

ships slid 9.9 per cent to $22,582 a day for the same period. Both compete for iron ore cargoes.


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Iron ore is the biggest single dry bulk commodity carried at sea, with 25 per cent share of the total in the

second quarter, estimates Drewry Shipping Consultants here. Imports by China, the biggest user, fell by

6.2 per cent in May after climbing to a record in April. That may signal a drop in demand for the raw

material and vessels to ship it. The worlds fleet of dry bulk vessels is expected to expand by 16 per

cent this year to 492.5 mill ion DWT, according to Dr

shipping industry update - june 2009

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