MPC 2009-007

Maritime Press Collection News reports taken from various internet news sites

Thursday, April 16, 2009/ 2009‐007

(82) 51 463 8250 • [email protected] 1 / 22

Busan port, Korea

Photo from: http://photo.naver.com/view/2009032000350271166

Shipbuilding News

Idle icebreakers raise questions over demand ICEBREAKERS in the Nordic region have been left idle after one of the warmest winters in history, leading to questions over their future role. State‐owned Finstaship operates a fleet of nine icebreakers, some with offshore capabilities, but said only 285 days were spent on icebreaking duties, compared with 474 in the previous year. No icebreaking was needed at all in the North Sea or the Gulf of Finland in 2008. As a result, two of the company’s traditional icebreakers have remained in port all winter. Finstaship head of icebreaking services Uusiaho Atso said the company had no immediate intention of selling its older vessels, which are chartered out to the Finnish Maritime Administration. Finstaship reported an operating loss for 2008 of €2.9m ($3.8m), compared with a profit of €5.9m in 2007. Finstaship also reported that its income from offshore services, which employs some of its

Maritime Press Collection / 2009-007 Thursday, April 16, 2009 News reports taken from various internet news sites

(82) 51 463 8250 • [email protected] 2 / 22

icebreakers during summer months, declined significantly due to the financial climate. Meanwhile, the Danish government has faced calls to sell its three ageing vessels. Representatives from the country’s shipowners, brokers and ports have called a meeting with the country’s minister of defence, who is responsible for Denmark’s icebreaking services to have the fee structure changed. The ministry of defence charges DKr22m ($3.9m) annually for icebreaking duties, which is split between vessels using ports and the ports themselves. The arrangements have been in place for many years, and according to the industry association Danish Ports, there has not been any substantial ice in Danish waters for 13 years. Last winter the country’s three pre‐Second World War icebreakers spent a period in the Baltic Sea on loan to Sweden and Finland so that the crews could get ice experience. “We do not need them,” said Danish Ports managing director Tom Elmer Christensen, who wants the government to pay back over DKr130m of fees the ports have been paying. “We know how much each port has paid so we want this returned. We would like also to see these old vessels sold and get some of that money too as we have been paying for the maintenance and upkeep of them.” He would like to see the Danish government replace the icebreakers with more modern multipurpose vessels that, like some of Finstaship’s vessels, are deployed in offshore duties when not on ice duties.

Photo from: http://elsmar.com/Forums/showthread.php?t=19514


(82) 51 463 8250 • [email protected] 3 / 22

The ministry of defence has yet to respond to the calls for a meeting to discuss these proposed changes. Sweden has four large icebreakers. One is deployed on Arctic and Antarctic research work, while the others are based in Luleå in the Gulf of Bothnia, where they have been in operation all winter. Sweden’s last harsh winter was 1996 although Johny Lindvall, icebreaking manager at the country’s maritime administration, said that while there had been a series of mild winters there was still a high probability of a severe winter occurring.

Money for workers at Northern Fleet shipyards

The Russian Ministry of Defence has allocated 42 million RUB to The Northern Fleet as payment for earlier fulfilled orders by the fleet’s shipyards. The money will be used to pay shipyard workers, of which many have not received wages in months. A letter informing about the allocation was sent from the ministry to Governor Dmitry Dmitriyenko on Wednesday last week, a press release from the regional government reads. The transfer was made only two days before a planned protest meeting in Murmansk. Several hundred workers gathered at the meeting, where a resolution demanding that all salary dept should be repaid within 15 days was made. According to the trade union for workers in the Northern Fleet, the workers on the

eight enterprises belonging to the fleet have a Total of 150 million RUB in outstanding wages, Lenta.ru reports. As BarentsObserver reported, 120 workers at the military shipyard in Roslaykovo outside Severomorsk laid down their work at the beginning of the month. Source: BarentsObserver

Maine shipyard razed by fire now busier than ever

Devastating fire in December 2008 at Washburn & Doughty Associates shipyard


(82) 51 463 8250 • [email protected] 4 / 22

Less than a year after it was leveled by fire, the Washburn & Doughty Associates shipyard in East Boothbay is busier than ever and looking for more workers. The yard is working on four tugboats, two of which were damaged in last summer's fire, and took delivery Monday of the keel for another new boat. Chief operating officer Lee Smith told WCSH‐TV that the yard has 98 fulltime employees and is looking for 20 to 25 more. A new building is slated for completion in June. A special law enacted last week in the Legislature will speed up benefits to Washburn & Doughty under Maine's Pine Tree Zone program. The fire, which caused an estimated $30 million in damages, was caused by sparks from a cutting torch. Source: Seacoastonline

Baosteel to invest RMB 2 billion (USD 293 Million) in Shanghai-Hangzhou Express Railway

Baosteel Group, parent of China's largest steel maker, Baoshan Iron and Steel Co<600019>, decided to invest RMB 2 billion (USD 293 Million) in the project company for the Shanghai‐Hangzhou Express Railway, which has just finished the required commercial registration procedures, sources reported. Baosteel will obtain an 8% share in the project company. A Total of RMB 25.27 billion will be invested in the project. China's Ministry of Railways (MOR), which will hold a 50%

stake in the project company, is considering pushing the project company to go public in the future, said a person familiar with the project. The 350‐kilometer Shanghai‐Hangzhou Express Railway has a designed capacity of 80 million passengers per year in each direction. It will complete construction by 2011. Source: Chinaknowledge

Do you want your colleagues or friends receive this daily free news letter?

Just advise them to send an email with subject of “I want to receive MPC” to:

[email protected]


(82) 51 463 8250 • [email protected] 5 / 22

ArcelorMittal planning 400 layoffs ArcelorMittal plans to lay off 400 employees from its Indiana Harbor Long Carbon facility in the next few months. ArcelorMittal sent a Worker Adjustment and Retraining Notification, or WARN, Act notice Monday to the United Steelworkers and other stakeholders, a company spokesperson said. "The global economic downturn has caused a reduction in the demand for the company's products," the company said in a statement. "Volumes are down significantly and market conditions remain weak.

"This indefinite closure and corresponding layoffs reflect measures the company is being forced to take around the world to adapt to the market." USW District 7 Director Jim Robinson acknowledged the union received the notice and said both union and nonunion employees would be affected. Robinson said the company had to give at least 60 days notice with the filing. Robinson said it's never easy to have employees laid off, but it's a reality steelworkers have dealt with in the economic downturn. Source: The Times Online

Offshore News

Petrobras out to woo Korean shipbuilders EXECUTIVES of Brazilian state energy group Petroleo Brasileiro arrive in Seoul next Monday to unveil a multi‐billion dollar offshore project before the country’s leading shipbuilders. South Korea has five shipyards capable of building the 30 drillships and semi‐submersibles that Petrobras is said by the Korea Export‐Import Bank, a major Korean ship financier, to be looking to invest up to $40bn in between now and 2017.

Samsung Heavy Industries, Daewoo Shipbuilding and Marine Engineering, Hyundai Heavy Industries and STX Shipbuilding will undoubtedly be the leaders. But Hanjin Heavy Industries and Construction has the technical capabilities, if not the experience. And that could be just the beginning. Around $104bn will be spent on exploration and production activities, $43bn on refining and $12bn on gas and power projects. The rest will be split between petrochemicals, distribution and biofuels.


(82) 51 463 8250 • [email protected] 6 / 22

“Once Petrobras has begun to lift the oil it should follow that there will be huge demand for the carriage of the product as well,” a SHI executive stated. Earlier this year Petrobras announced it had plans to increase investments in offshore exploration, production and hydrocarbon refining by 55% to $174bn. There is no indication that next week’s beauty contest will result in contracts any time soon but all four yards who, with the exception of SHI have not received a contract in six months, will be eager to impress.

SHI told Lloyd’s List that the company was confident of eventually picking up a good portion of the potential business. SHI already has a contract for two drillships for Petrobras that it signed at the end of 2008. Another feather in SHI’s cap is its cooperation with Petrobras related shipyard Atlantico Sul, where the Korean shipbuilder has sold designs for aframax and suezmax vessels. “We are expanding cooperation with Atlantico Sul. Doing what we can to assist them in their ambitions,” the executive said. With 24 drillships on its orderbook together with orders for at least four FPSOs, SHI has more current offshore experience than its rivals and must be looking forward to the fight. STX Shipbuilding is a late starter in the offshore sector but has risen rapidly through a facility in Dalian and the acquisition of a yard in Brazil when it took over Europe’s Aker Yards. HHI’s past experience of offshore construction and its recently announced FPSO dedicated dock and three drillsips on the backlog must be in a position to pick up a portion of the spoils. DSME is second only to SHI in its share of the lucrative offshore market. It has 11 drillships on its orderbook. A Hong Kong broker put the expectations for next week succinctly. “It will be like the presentation of an ice‐cold lager to men who thought they were hopelessly lost in the desert. Source: Lloyd’s List


(82) 51 463 8250 • [email protected] 7 / 22

BG, partners hits new discovery in the pre-salt Santos Basin, offshore Brazil

BG Group has reported a new discovery in the pre‐salt Santos Basin, offshore Brazil. The well, 4‐BRSA‐709 (4‐SPS‐60), known as Iguaçu, has proven the presence of another accumulation of light oil, in the BM‐S‐9 concession. Petrobras is the operator of BM‐S‐9 and holds 45 per cent, BG Group holds 30 per cent and Repsol holds 25 per cent.

Further evaluation of the discovery will continue in line with the National Petroleum Agency (ANP) approved evaluation plan. The drilling of another well in this evaluation plan area will commence shortly. This is the third discovery by BG Group and partners in the BM‐S‐9 concession. The BM‐S‐9 concession comprises two evaluation plan areas: Carioca ‐ 1‐BRSA‐491‐SPS (1‐SPS‐50) Guará ‐ 1‐BRSA‐594‐SPS (1‐SPS‐55) Iguaçu is located in the evaluation plan area 1‐SPS‐50 (Carioca), around 340 km off the coast of São Paulo State in 2 140 metres of water. BG Group has been present in offshore Brazil since 2000 and has interests in seven concessions in the Santos Basin covering a total area of approximately 7 450 square kilometres. Source: Scandinavian Oil‐Gas Magazine

Thunder Horse makes BP the U.S. Gulf's largest producer

HOUSTON, TEXAS: BP has ramped up production from its Thunder Horse platform in the U.S. Gulf of Mexico to over 300,000 BOE/d, an increase from production of 200,000 BOE/d attained last December. BP spokesperson Ronnie Chappell said that BP's net production in the U.S. Gulf is now around 400,000 BOE/d, making it the number one producer in the area. Chappell told EnergyCurrent that the Thunder Horse topside facilities were performing better than expected and the field is performing extraordinarily well. Chappell said that Thunder Horse was the U.S. Gulf's second biggest field in

terms of daily production. The Thunder Horse field is on Mississippi Canyon Blocks 778 and 822 in water depths of 6,050 feet (1,844 m). Production is from reservoirs between 14,000 feet to 19,000 feet (4,265 m to 5,790 m) below the seabed.


(82) 51 463 8250 • [email protected] 8 / 22

The semisubmersible platform began production in June 2008. Thunder Horse was originally planned to come on stream in 2005, but was delayed after it sustained hurricane damage. After this, the subsea equipment was determined to have become brittle, and needed to be fully replaced. BP is the operator of Thunder Horse with a 75 percent interest. ExxonMobil holds a 25 percent interest in Thunder Horse. Other producing BP projects in the U.S. Gulf of Mexico includes Atlantis on Green Canyon Block 699, Holstein on Green Canyon Block 645 and Marlin on Viosca Knoll Block 915. Source: Energy Current

StatoilHydro to modify Troll A

STAVANGER, NORWAY: StatoilHydro received consent from Petroleum Safety Authority Norway to carry out modifications to the Troll A facility. The consent is for an expansion of living quarters and replacement of the emergency shutdown system. Construction will be carried out from 2009 until 2011. The Troll A living quarters will be expanded by 150 beds. Also, two new freefall life boats and two escape chutes will be installed. The programmable part of the existing emergency shutdown system will be replaced by a new system able to handle all new projects at Troll A.

According to StatoilHydro, the expansion is necessary to increase crew on the facility, amongst other things, in connection with the installation of more compressors and to ensure future exploitation of gas and oil reserves at the Troll field. Source: Energy Current

Contract to Drill Well in GOM Atwood Oceanics, Inc., (NYSE:ATW) a Houston‐based international drilling contractor, announced that the Richmond has been awarded a contract by Applied Drilling Technology, Inc. to drill one well in the U.S. Gulf of Mexico at a dayrate of $52,500. This well (estimated to take 40 days to complete) will be drilled immediately following the completion of the rig's current contract which is expected to terminate in late April 2009 or early May 2009. Source: Marinelink

Enterprise Declares 19th Consecutive Quarterly Cash Distribution Increase


(82) 51 463 8250 • [email protected] 9 / 22

Enterprise Products Partners L.P. announced that the board of directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.5375 per common unit, or $2.15 per unit on an annualized basis. The quarterly distribution will be paid

on Friday, May 8, 2009, to unitholders of record at the close of business on Thursday, April 30, 2009. This distribution represents a 5.9 percent increase compared to the $0.5075 per unit quarterly distribution declared with respect to the first quarter of 2008. This represents the 28th distribution increase since Enterprise’s initial public offering in 1998 and its 19th consecutive quarterly increase. Source: Rigzone

Wood Group Opens Cased Hole Logging Training Facility in Texas

Wood Group Logging Services ("WGLS"), part of international energy services company John Wood Group PLC ("Wood Group"), has opened a new 2.5‐acre facility in Weimar, Texas, for use in conducting hands‐on well logging training for its logging operators and engineers. The facility, which includes a working derrick and test well, will be

used to teach a variety of downhole tool operations and logging classes. Topics will include cased hole logging and perforating, well log interpretation, production logging techniques, well pressure control and field safety. Technology development, testing and demonstrations will also be done at the new site. "Wood Group Logging Services' reputation for providing outstanding customer service is dependent upon knowledgeable, well‐qualified employees," stated John Paul Jones, president of WGLS. "Up to 60 engineers and operators will be trained this year, in situations simulating a variety of well conditions and types of completions, which will enable us to continue offering safe, efficient, cost‐effective logging services onshore and offshore." Source: Wood Group

Waiting your articles and photos. If you have any photos or articles that may be of

interested by the people at sea please send to: [email protected]


(82) 51 463 8250 • [email protected] 10 / 22

OPEC Forecasts Continuous Decline in Global Oil Demand in 2009

OPEC headquarters in Vienna, Austria. The crude oil demand worldwide would continue to decline this year due to the global economic crisis, according to a monthly oil market report published here Wednesday by the Organization of the Petroleum Exporting Countries (OPEC). The report said that the global crude oil demand in the first half of this year averaged 85.6 million barrels per day, representing a reduction of 0.4 percent or up to 0.35 million barrels per day compared to last year. The downward trend would continue in the second half of this year, with a decline of 1.6 percent or up to 1.4 million barrels per day, the report said. According to the report, the current economic recession was the main reason for a drop in demand in the international crude oil market. Especially, major crude oil consumers, the member countries of the Organization for Economic Co‐operation and Development (OECD) were seen with significant drops in oil demand. The report also said that the crude oil demand of the OECD in 2008 declined 3.4 percent to 47.51 million barrels per day, with a reduction of 1.7 million barrels per day from the previous year. In which, North America declined 4.9 percent to 24.3 million barrels per day and Western Europe declined 0.6 percent to 15.2 million barrels per day. The crude oil demand of the OECD would further drop in 2009, in which North America would decline to 23.7 million barrels per day and Western Europe would drop to 14.75 million barrels per day, according to the report.


(82) 51 463 8250 • [email protected] 11 / 22

In this context, the international market demand for OPEC oil was expected to average 28.7 million barrels per day, representing a drop of 2.1 million barrels per day from the previous year. In addition, this report also shows that, OPEC crude oil output in March was 27.9 million barrels per day, with a drop of 145,000 barrels per day compared to February. OPEC oil prices fell to less than 35 U.S. dollars per barrel by the end of 2008. It appeared to take a slight upward trend with fluctuation since the beginning of this year to 50 U.S. dollars per battle in April. However, due to the contracted oil demand by the prospect of economic weakness, the continuous climb of oil price was hard. OPEC Secretary‐General Abdalla Salem El‐Badri as well as other OPEC leaders said that, the oil prices should be kept between 70 and 75 U.S. dollars per barrel, which would be able to support the sustaining OPEC industrial investment. However, in view of the current severe downturn in the global economy, the prices between 40 to 50 U.S. dollars per barrel were also acceptable. The next oil ministerial conference of OPEC will be held in Vienna on May 28 of this year, to discuss the OPEC oil output quota for the next phase. Copyright 2009 XINHUA NEWS AGENCY

BJ Services bags contract in India


(82) 51 463 8250 • [email protected] 12 / 22

BJ Services Company has been awarded a contract by a major oil and gas operator in India. The contract calls for the provision of well services in the form of casing and tubing running services. BJ will service the company’s exploration activities off India’s east coast from its Kakinada Shore Base. BJ Services recently commenced operations with equipment mobilized from its base in Dubai. To provide these services, BJ is using its ChromeMaster™ minimal marking nonferrous tubular handling system, the full‐mounted spider (FMS), Salvo™ graphical analysis system, and fill and circulate tool (FAC), which provides fast, effective fill‐up of casing string while running. The chrome tubular completions will be run in water depths of up to 990 ft (302 m). “As the tubular services group expands globally, India continues to be an extremely important market for us. We have operated in India since 1998, and provided casing and tubing running and hammer conductor driving services to a number of key operators in the region,” said Kenny Watt, BJ Services, vice president of Tubular and Completion Assembly Services. In 2007, BJ Services successfully completed a well services contract to provide torque‐turn services for this operator offshore Kolkatta in the Bay of Bengal in India. Source: Scandinavian Oil‐Gas Magazine

Noble Energy estimates Israeli gas discovery at 500 Bcf

ISRAEL: Noble Energy, Inc. (NYSE: NIBL) has flow tested the Dalit natural gas discovery in the Michal license offshore Israel. The tests yielded a flow rate of 33 MMcf/d of natural gas. Based on log and test results, Dalit is estimated to contain gross mean resources of nearly 500 Bcf of natural gas. Of the previously reported 110 feet (33.5 m) of net pay identified, testing procedures were performed over a limited 43‐foot (13.1 m) section of the reservoir. The tests were limited by testing equipment available on Atwood semisubmersible Atwood Hunter. Performance modeling indicates the well can be ultimately completed to achieve a production rate of about 200 MMcf/d. The Dalit discovery is in around 4,500 feet (1,371.6 m) of

water, 30 miles (48.3 km) offshore. The well was drilled to a depth of 12,000 feet (3,657.6 m). Dalit is the company's second subsalt, lower Miocene discovery in the Levantine basin. Noble Energy Chairman, President and CEO Charles D. Davidson said, "These results are very encouraging. Even though Dalit is smaller than Tamar, the discovery of this high quality reservoir adds important natural gas resources for development and gives us further confidence that our geologic model for this region is working very well. We expect to begin acquiring 3D seismic during the next several months to supplement our understanding of this basin and the various leads on our acreage." Atwood Hunter will immediately return to the Tamar discovery in the Matan license to drill an appraisal well designed to better define the resources of Tamar. The current estimated gross mean resource potential of Tamar is 5.0 Tcf of natural gas.


(82) 51 463 8250 • [email protected] 13 / 22

Noble Energy operates both the Michal and Matan licenses with a 36 percent working interest. Other interest owners are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent and Dor Gas Exploration with the remaining four percent.

Shipping News

US food aid ship escapes Somali pirate attack

Liberty Sun as it passes Gibraltar June 27, 2007

Photo from: AP MOMBASA, Kenya – Somali pirates fired grenades and automatic weapons at an American freighter loaded with food aid but the ship managed to escape the attack and was heading Wednesday to Kenya under U.S. Navy escort, officials said. Despite President Barack Obama's vow to halt their banditry, and the deaths of five pirates in recent French and U.S. hostage rescue missions, brigands seized four vessels and over 75 hostages off the Horn of Africa since Sunday's dramatic rescue of an American freighter captain. One pirate declared Wednesday they are grabbing more ships and hostages to prove they are not intimidated by Obama's pledge. "Our latest hijackings are meant to show that no one can deter us from protecting our waters from the enemy because we believe in dying for our land," Omar Dahir Idle told The Associated Press by telephone from the Somali port of Harardhere. The Liberty Sun's American crew was not injured in the latest attack but the vessel sustained some damage, owner Liberty Maritime Corp. said.


(82) 51 463 8250 • [email protected] 14 / 22

Still, the attack foiled the reunion between the American sea captain rescued by Navy snipers and the 19‐man crew he had saved with his heroism. Capt. Richard Phillips was planning to meet his crew in the Kenyan port of Mombasa and fly home with them Wednesday to Andrews Air Force base in Maryland. But Phillips was on the USS Bainbridge, the destroyer diverted to escort the Liberty Sun after it evaded attack. Instead, the crew was at Mombasa airport Wednesday to return home alone. "We are very happy to be going home," crewman William Rios of New York City said. "(But) we are disappointed to not be reuniting with the captain in Mombasa. He is a very brave man." Phillips had offered himself up as a hostage to save his men. Liberty Sun sailors used the same tactic Phillips employed to foil the pirates — blockading themselves inside the engine room. "We are under attack by pirates, we are being hit by rockets. Also bullets," crewman Thomas Urbik, 26, wrote his mother in an e‐mail Tuesday. "We are barricaded in the engine room and so far no one is hurt. (A) rocket penetrated the bulkhead but the hole is small. Small fire, too, but put out." The Liberty Sun "conducted evasive maneuvers" to ward off the pirates, said U.S. Navy Lt. Nathan Christensen, spokesman for the Bahrain‐based 5th Fleet. "That could be anything from zigzagging to speeding up to all kinds of things," he said. "We've seen in the past that that can be very effective in deterring a pirate attack." The USS Bainbridge responded but the pirates had left by the time it arrived five hours later, Navy Capt. Jack Hanzlik said.

This year, Somali pirates have attacked 79 ships and hijacked 19 of them. They still hold 17 vessels with more than 300 hostages from a dozen or so countries. The Liberty Sun, with a crew of 20 American mariners, was carrying humanitarian aid to Mombasa. It had set off from Houston and had already delivered thousands of tons of food aid to Sudan. Spokesman Peter Smerdon of the U.N. World Food Program said some of Liberty Sun's food was destined for Somalia. He said the U.N. agency was worried because more food aid was to have been delivered by another cargo ship hijacked by pirates on Tuesday, the Lebanese‐owned MV Sea Horse. It was headed to Mumbai, India, to pick up 7,327 tons of WFP food for Somalia. Nearly half of Somalia's 7 million people depend on food aid.


(82) 51 463 8250 • [email protected] 15 / 22

"WFP is also extremely concerned that people in Somalia will go hungry unless the Sea Horse is quickly released or a replacement ship can be found," Smerdon said. Pirates say they are fighting illegal fishing and dumping of toxic waste in Somali waters but now operate hundreds of miles from there in a sprawling 1.1 million square‐mile danger zone. They can extort $1 million or more for each ship and crew. Kenya estimates they raked in $150 million last year. A flotilla of warships from nearly a dozen countries has patrolled the Gulf of Aden and nearby Indian Ocean waters for months. They have halted many attacks but say the area is so vast they can't stop all hijackings. The Gulf of Aden, which links the Suez Canal and the Red Sea to the Indian Ocean, is the shortest route from Asia to Europe and one of the world's busiest shipping lanes. In an unusual nighttime raid, pirates seized the Greek‐managed bulk carrier MV Irene E.M. before dawn Tuesday, with at least 21 crew. Hours later, they commandeered the MV Sea Horse carrying 19 crew. They also captured two Egyptian fishing trawlers carrying 36 fishermen. Yemen's coast guard rescued 13 Yemeni hostages and their fishing trawler in a shootout Monday with pirates, the Yemen embassy in Washington said. No casualties were reported. Three Somali pirates have been brought to the French city of Rennes to face an investigation, a French judicial official said Wednesday. They were arrested Friday in an operation to free the Tanit, a French ship seized in the Gulf of Aden. In that raid, four hostages were freed and one was killed, along with two pirates. Several other Somali pirates are already in French custody after being seized last year. Source: AP

A.P. Moller - Maersk Group statement on piracy

Maersk Alabama


(82) 51 463 8250 • [email protected] 16 / 22

In light of the hijacking of MAERSK ALABAMA and hostage‐taking of Captain Richard Phillips, the A.P. Moller ‐ Maersk Group is making a thorough investigation of the events. Based on this investigation, the Group will review its policies and procedures for sailing off the coast of Somalia and take appropriate action. "Our main concern is always the safety and security of our crews. We are extremely vigilant and constantly monitor the situation in the Gulf of Aden and the area off the Somali coast," says Søren Skou, A.P. Moller ‐ Maersk Group Partner and Maersk Tanker CEO. The A.P. Moller ‐ Maersk Group would like to express its appreciation for all the efforts and support which ensured the safe return of Captain Richard Phillips and the crew of MAERSK ALABAMA. The A.P. Moller ‐ Maersk Group reiterates its appeal to the international community, which must come together to find a solution to the problem of piracy. Piracy is a threat to important international trade lanes and therefore an international security issue.

"We must insist that it is possible for seafarers to do their job in a safe and peaceful environment. Civilian crews must be able to do their job in safe environment; ensuring goods are traded around the world," says Søren Skou. "This is not a problem the A.P. Moller ‐ Maersk Group or the shipping industry can or should solve alone," says Søren Skou. The A.P. Moller ‐ Maersk Group provides its crews with detailed safety and security instructions, and emphasises the importance of exercising vigilance when sailing in the areas of piracy risk. This includes reviewing onboard security plans before entering the area. The A.P. Moller ‐ Maersk Group is also examining routes and vessel assignments in the area off the coast of Somalia. Still, the piracy situation around Somalia is very dynamic and constantly changing. "While the naval presence in the Gulf of Aden has been successful in deterring attacks there, the pirates still remain a threat to crews and vessels in the area and elsewhere. The problem has not gone away," says Søren Skou. Source: Maersk

Cosco warns of 50% fall in first quarter profits

COSCO Shipping, the heavylift and specialist vessels division of China’s largest shipping company, is likely to see a drop of more than 50% in net profits for the first quarter this year to below Yuan178m ($26.2m). The Shanghai‐listed company had already warned that this year would be the toughest ever as cargo volumes and freight rates dropped. The profit warning follows its best ever year in 2008, when Cosco Shipping posted a 34.8% rise in net profits to almost Yuan1.5bn. This was achieved on the back of a 29.6% rise in revenue to

Yuan6.9bn. The full‐year profit figure was helped by a Yuan357m profit contribution in the first quarter of last year that was matched by an equally strong contribution in the second and third quarters. The Guangzhou‐based company operates a fleet of around 84 ships that mainly comprise semi‐


(82) 51 463 8250 • [email protected] 17 / 22

submersible, multi‐purpose and ro‐ro vessels, together with pure car carriers. The company also has two next generation 50,000 dwt semi‐submersible vessels on order at Guangzhou Shipyard International. The first of the two 216 m‐long ships, which will be equipped with two independent engine rooms, is due for delivery in September 2010. Source: Lloyd’s List

Hellespont seeks partners to join new tanker pool Exclusive by Christopher Mayer, Hamburg

Christian von Oldershausen: Interest has been strong BASIL Papachristides’ Hellespont Group is looking for partners to join Seatramp Intermediate Tanker Pool, its new vehicle for chemical/product tankers set up specifically to help owners manage the recession. The Hamburg‐headquartered group, which has deferred delivery of two newbuildings, the 17,000 dwt chemical carriers Hellespont Commander and Hellespont Crusader, in response to the market downturn, is aiming at a fleet of between 25 and 30 vessels built from 2000 onwards and ranging in size from 10,000 dwt to 20,000 dwt, according to Christian von Oldershausen, chief executive of Hellespont AG in Hamburg, whose team is behind the venture. Hellespont currently operates 19 vessels ranging from the 105,535 dwt aframax Hellespont Tatina to platform supply vessels. Two of these, the Hellespont Daring and Hellespont Dawn have been delivered recently. The group has 12 vessels on order including the Hellespont Commander and Hellespont Crusader, the last in the series, which were to have been delivered in October and December 2009 but which will now join the fleet late in 2010. Delivery has been deferred and renegotiated due to current market conditions. “Interest in such a pool within and outside Germany has been strong and no one has a stronger interest than Hellespont in the destiny of these ships. Leaving this to someone else would not be the right signal to the market,” Mr von Oldershausen told Lloyd’s List. “We have an obligation and responsibility to take charge of these ships and Hellespont will be responsible for start up costs. Vessels’ income will be distributed to owners as soon as possible from vessel earnings” With tonnage oversupply in all trading regions and the number of fixing days forward at an all‐time low, charter rates were below historical averages and spot charter rates were reportedly below


(82) 51 463 8250 • [email protected] 18 / 22

$0.70 per dwt per day, said Mr von Oldershausen. “Pools provide better‐than‐market and less volatile earnings; recent consolidation initiatives such as Maersk/Brostrom create the need for an alternative carrier and stable client relationships lead to long‐term earnings prospects,” Mr von Oldershausen added. Hellespont Tankers will act as pool manager from a new office in Dom Strasse in Hamburg under Mr von Oldershausen and business development co‐ordinator Phrixos Papachristides, with two chartering managers from Brostrom & Iverships and UPT and Albis, two operators including an ex‐master mariner with eight years’ seagoing experience, two accountants and a management assistant. “Our intention is to establish a judicial balance of tonnage and cargo/charter cover, equitable dealings with all pool participants, transparency of operations and timely reporting to participating owners, prompt settlement of voyage costs and other market obligations and prompt flow‐through of remaining cash to owners,” said Mr von Oldershause Source: Lloyd’s List

New Texas Office for BHGI Bristol Harbor Group, Inc. of Bristol, Rhode Island has opened a new field office in Houston, Texas. The new office, located at 4747 Bellaire Blvd., Bellaire, Texas, will allow Bristol Harbor to provide owner's representative and construction oversight services along the Gulf Coast more efficiently. Bristol Harbor has been providing owner's representative and construction oversight services to clients for over ten years, and is focused on owner's representation, project and program management, acquisition support, consulting, and traditional marine surveying. Bristol Harbor Group, Inc. will continue to offer full service naval architecture and marine engineering services out of the Rhode Island office, as has been done since 1993. Source: Lloyd’s List

Rotterdam reels from cargo slump PORT of Rotterdam has forecast a decline in throughput of 6%‐10% for 2009, after posting a 10% drop in cargo volumes for the first three months of the year, writes Helen Hill in Amsterdam . Port of Rotterdam Authority president Hans Smits said: “The decline in throughput is considerable but is in line with the picture I outlined in December of a poor first six months. “Despite some rays of hope, the problems — for example, in container shipping — continue to dominate for the time being. “The recovery will therefore begin a little later than originally anticipated.” The Dutch port handled 94m tonnes of cargo, down 10.8% on the same period in 2008. In the first three months, containers, ro‐ro traffic, iron ore and scrap were particularly hard hit. Container throughput fell by 16% to 2.3m teu. In a statement, the port said: “There is no evidence of positive trends in any particular trade. For the rest of the year too, prospects are poor in terms of volume.” Container shipping was wrestling with overcapacity and was faced with the challenge of increasing extremely low freight tariffs, the port said. Ro‐ro traffic was suffering heavily from the “unprecedented decline in the UK economy and the increased value of the euro against the pound”. Source: Lloyd’s List


(82) 51 463 8250 • [email protected] 19 / 22

The center of the Rotterdam Port

Photo from: www.mannlines.ee/334eng.html


(82) 51 463 8250 • [email protected] 20 / 22

Other News

South Korea to send two Navy vessels to China for fleet review

The South Korean navy said Tuesday that it will send a helicopter carrier and a warship to China to join the International Fleet Review in next week. For the annual exhibition, about 40 vessels from 20 nations, including the United States and India, will gather in Qingdao, China from April 20 to 23. The vessels to be dispatched by South Korea are the LP‐X Dokdo amphibious vessel and the KDX‐II Gang Gam Chan destroyer, the Navy said in a statement. The event will also celebrate the 60th anniversary of the founding of the Chinese navy, the South Korean Navy added. Last year's fleet review was held in Busan, South Korea. Source: XinhuaNet

Investment to Improve South Africa Port When the Zhen Hua No.23 entered Durban harbour in South Africa on Saturday, 11 April 2009 around 0700, it attracted considerable attention due to its immense size of 804 ft long and its beam of 131 ft. Equally interesting were the six pre‐assembled harbour cranes weighing a total of 2,540


(82) 51 463 8250 • [email protected] 21 / 22

tonnes onboard the vessel. The vessel is purpose‐built to transport abnormal project cargo. Its cargo included two rail mounted gantry (RMG) cranes weighing 285 tonnes each and purchased by Transnet Port Terminals for R36 million apiece. The cranes will be used to improve port‐rail efficiency within the busy Pier 1 container terminal. The vessel also carried four ship‐to‐shore cranes weighing 985 tonnes each, destined for the Port of Rotterdam in the Netherlands. All of the cranes were manufactured by the Shanghai Zhenhua Port Machinery Company (ZPMC) in China. Michelle Phillips, Business Unit Executive at the Pier 1 container terminal, said once commissioned by the end of May the two rail cranes for Pier 1 terminal would be used to transfer containers between internal road vehicles and rail wagons more quickly and easily. “This will substantially increase the turnaround of containers to and from the terminal. Previously the rail wagons were offloaded with reach stackers, which is a much slower process. In keeping with Pier 1’s positioning as a high performance container terminal using only world‐class equipment, Transnet Port Terminals made this total investment of R72 million in an effort to lower logistics costs and reduce the overall cost of doing business,” said Phillips. The cranes can straddle three rail lines and train sets simultaneously and travel the full length of the 810 metre facility, unlike reach stackers which are only able to serve one rail line at a time. They are also able to load directly onto special purpose trailers, which are then transported directly to the container stacks.

The Zen Hua 23 arriving at Felixstowe in March 2008

The Zhen Hua No.23’s visit included a huge logistical effort, from extensive pre‐arrival coordination between Transnet Port Terminals, Transnet National Ports Authority and ZPMC, to diverting all container traffic to the neighbouring Durban container terminal. The vessel was granted priority


(82) 51 463 8250 • [email protected] 22 / 22

access so it could sail in immediately and berth its bulky body at the terminal without disruption from other vessels. “These cranes are among the final investments which form part of phase one of Transnet’s Pier 1 container terminal expansion plans. This phase has seen Transnet provide additional capacity of 720 000 TEU to the Port of Durban. Phase two is at feasibility stage and aims to convert Salisbury Island to create additional capacity of 800 000 TEU’s,” Phillips said. The cranes’ commissioning process starts on 16 April and they are expected to be fully operational by the end of May. The ZHEN HUA No.23 vessel left Shanghai, China on 14 March 2009 and was originally scheduled to arrive in Durban on Good Friday, 10 April. Its entry had to be delayed by a day due to strong winds. It will remain in the port for six days. Source: Lloyd’s List

The compiler of this press clipping disclaim all liability for any loss, damage or expense however caused, aring from the sending, receipt, or use of this e-mail communication and on any reliance placed upon the information provided through this free service and does not guarantee the completeness or accuracy of the information, If you want to no longer receive this bulletin kindly seen an e-mail with the word “unsubscribe” in the subject line to [email protected]

MPC 2009-007

Documents

Transcript of MPC 2009-007