Newsletter 054

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September 2012

Transcript of Newsletter 054

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T&T SHIPBUILDER & REPAIR NEWS www.tts-r.com

ISSUE #054 – SEPTEMBER 2012. SKYPE: TT SHIPBUILDING AND REPAIR

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T&T SHIPBUILDING & REPAIR (S&R) CLUSTER

Diversifying our Economy, one Ship at a time©...

Hello S&R Stakeholders, SHIPPING SOLUTIONS & SERVICES LIMITED JOINS OUR S&R CLUSTER

SHIPBULDING & REPAIR CHOOSES FEDEX EXPRESS

Shipping Solutions & Services Limited was established in 2004 to provide customers with a Holistic Global Solution to all their Logistic Needs. Whether your logistics are via Land, Air or Sea, Shipping Solutions is the One Entity where every Shipping Need can be attained with many Solutions for the Service required at hand with one single body of competent, professional and knowledgeable staff! SSSL is the Trinidad Representative for Dockwise. Dockwise is specialized in the total marine scope for float-over and deck-mating operations of heavy topsides. SSSL is also part of the global network team of Hellmann Worldwide Logistics, which gives us the power to “Think Ahead and Move Forward”. Hellmann Worldwide Logistics operates 443 branches in 157 countries and employs in excess of 16,500 people.

Our Shipbuilding & Repair Development Company (SRDC) recently received our FedEx Express Corporate Account as we look to streamline our operations and to make it a lot easier to ship and receive documents and items from our S&R Stakeholders from all over the world! FedEx Express began operations in 1973 and was the first to introduce express delivery service to Latin America and the Caribbean with the opening of an office in Puerto Rico in 1981. FedEx has achieved ISO 9001 quality certification for its entire worldwide operation, the first major carrier to be recognized in this way. As a reaction to the region's rapid growth, FedEx has created a dedicated division to service Latin America and the Caribbean in Miami, Florida.

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S&R WECOMES CARIBBEAN SAFETY PRODUCTS (CSP) ON BOARD! Sincerely, T&T Shipbuilding and Repair Cluster.

Wilfred de Gannes. Deputy Leader.

Founded in 1983, Caribbean Safety Products Limited, commonly referred to as CSP, has become a household name over the years. The company prides itself on a long standing reputation of excellence, providing the highest level of customer service unmatched in the industry today. CSP has grown from a small company supplying safety requirements of products and services, but now it caters to the needs of a large local, regional and international client base. The company’s partnerships with leading international brands have positioned CSP as the number one choice, providing customers with competitive pricing backed by highly motivated and trained experts in the industry. Please visit the following website: www.caribbeansafety.com/

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WORLD MARITIME DAY 2012 IMO: ONE HUNDRED YEARS AFTER THE TITANIC Message from Koji Sekimizu, Secretary-General, International Maritime Organization

On 14 April 1912, the White Star liner ‘Titanic’ was transformed in a few short hours from the world’s most celebrated ship into a name forever associated with disaster. Many ships have sunk – too many – but few have had the lasting impact of the seemingly invulnerable Titanic.

The Titanic tragedy prompted the major shipping nations of the world, at that time, to take decisive action to address maritime safety. This led to the adoption, two years later, of the first-ever International Convention on Safety of Life at Sea and, ultimately, to the establishment of IMO itself i.e. the International Maritime Organization.

Today, much updated and revised, SOLAS is still the most important international treaty addressing maritime safety. And, as 2012 marks the 100th year since that ill-fated ship foundered, the IMO Council decided that the World Maritime Day theme for this year should be “IMO: One hundred years after the Titanic”. Since its formation, IMO’s main task has been to develop and maintain a comprehensive regulatory framework for international shipping. Its mandate was originally limited to safety-related issues, but subsequently this remit has been expanded to embrace environmental protection, legal matters, technical co-operation, issues that affect the overall efficiency of shipping and maritime security, including piracy and armed robbery against ships. The direct output of IMO’s regulatory work is a comprehensive body of international conventions, supported by literally hundreds of guidelines and recommendations that, between them, govern just about every facet of the shipping industry – from the drawing board to the scrapyard. The most important result of all this is that shipping today is safer, cleaner, more efficient and more secure than at any time in the past. But each new generation of vessels brings fresh challenges and, regrettably, accidents still occur, reinforcing the need for continual improvement. Our efforts to promote maritime safety, not least of passenger ships, will never stop. We should respond quickly to accidents and we must be proactive.

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To this end, we are planning to hold a two-day symposium at IMO Headquarters, in London, in conjunction with IMO’s Maritime Safety Committee next June, on the "Future of Ship Safety”. The idea is to go beyond the current safety issues under the Committee and rigorously consider the future of maritime safety. The objective is for the discussions to contribute to the future advancement of the Organization’s maritime safety policy. What separates the passenger and cruise ship industry from the rest of shipping is the unique nature of its cargo – hundreds and thousands of people. The lives of thousands of people are in the hands of the ship's management, the captain and crew and the operating staff. I therefore hope that this sector, in particular, will take the opportunity to lead the way, because "safety" is its main product – not comfort, entertainment or leisure. Without safety, the industry will not survive, let alone sustain its growth; and real safety does not result simply as a consequence of regulation-compliance. Some 20 years ago, the International Safety Management Code, adopted by IMO, represented a step-change in the establishment of a safety culture in shipping. The time has now come to generate another step-change. This will not be achieved through legislative measures alone. We must generate a new impetus in shipping to go beyond compliance with regulations and explore industry-wide mechanisms to ensure the safety culture is embedded throughout the entire industry. So this year, as we look back on that pivotal disaster 100 years ago, I urge IMO Member Governments and the shipping industry as a whole to refresh their determination to improve and enhance the safety of passenger shipping today, and into the future.

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To view ‘A MESSAGE FROM IMO’S SECRETARY-GENERAL’ video, please click: http://youtu.be/rlgpeyFpYRY

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PANAMA CANAL TO DOUBLE ITS CAPACITY An expanded Panama Canal, which will more than double its capacity, now poses to disrupt shipping patterns in the Caribbean by prompting a container terminal building spree as various ports rush to claim market share.

A schematic of the Panama Canal, illustrating the sequence of locks and passages.

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Earlier this month, a court cleared the way for a US$1 billion port facility in Costa Rica, while Cuba is embarking on a US$800 million port in Mariel. Beijing-based China Communications Construction Company signed a two-year agreement with the Jamaica government this month that would allow direct Chinese investment in selected infrastructure projects, including the port. "When Costa Rica is finished it is going to be a threat to all of us in the Caribbean and Panama," said Carlos Urriola, the head of the Caribbean Shipping Association. "The only port that can compete directly with Jamaica is Cuba - Caucedo (Dominican Republic) is already full to capacity." Mr Urriola, also vice-president of Panama's Manzanillo International Terminal, said that ports which hope to benefit from the canal expansion need to implement box handling projects before the expanded canal opens in the first half of 2015 - no longer 2014 as commonly assumed. "The shipping community wants to know that you will be an alternative, but if you can't say when, you are not going to be a part of the decision making," he warned, adding that terminals have three years to become operational. Jamaica's Kingston Wharves Limited raised JMD1.8 billion (US$20.2 million) from Jamaica Producers Group (JP) to undertake its expansion. Meanwhile, the Cuban expansion, which will lift Mariel's annual capacity from 350,000 TEU to one million, is expected to come on stream in 2014. Costa Rica's two million TEU annual capacity terminal located in Moin is to be completed in three to five years, but it puts it closer to the largest market in Latin America - Brazil. Brazil's population is expected to grow 18 per cent to 251 million(of the 700 million in all of Latin America) by 2030. "Population growth shows were the cargo is going," said Mr Urriola. Transshipment centres can also compete on price, but without value added, shipping lines will move on to other locations. Manzanillo, targeting 12.4 million TEU by 2020, the biggest regional competitor, moving seven million TEU last year compared to Jamaica's 1.7 million, has an entire logistics centre planned, including a large commercial freezone, highway, railway, airport and banking within the same area. Productivity needs to be increased significantly, and container movement targets should be lifted from 30 moves per hour to 50, he said. At Kingston Container Terminal, the average move per hour using gantry cranes was 19.8 TEU in 2008, while the facility focused on transshipment hit its highest productivity (36 moves per hour) on any vessel docked at its port in 2010.

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INTERNATIONAL NEWS

Bulk Carrier Explodes off Bermuda, Sailor Burnt - September 29, 2012

With a full cargo of coal destined for Karachi, Pakistan, the Marshall Islands-flagged bulk carrier SEA MOON was about 140 miles southwest of Bermuda when an explosion occurred in one of her cargo holds at 3:05pm on Friday. One of the ship’s Filipino crewmembers was lost overboard during the incident, and subsequently recovered via the vessel’s fast rescue craft.

With the recovered sailor suffering full-body burns, the ship notified the Bermuda Maritime Operations Center announcing their intention to divert for medical evacuation and that their cargo was stable with no signs of fire.

SEA MOON is owned by Athens-based, Hellenic Star Shipping, was built in 2009 by Qingshan Shipyard, and is classed by Bureau Veritas.

The ship is presently at anchor 1.5 miles east of St David’s Lighthouse where she will remain until company representatives and surveyors have inspected her.”

Contract Awarded to Newbuild Jack-up Atwood Manta - September 28, 2012

Atwood Oceanics, Inc. announced today that one of its subsidiaries has been awarded a contract by CEC International, Ltd. for the jack-up rig ATWOOD MANTA which is currently under construction at PPL Shipyard PTE in Singapore.

The day rate for the work in the Gulf of Thailand and offshore Malaysia will be US$145,000 and the award is for a firm duration of 12 months. The ATWOOD MANTA is a Pacific Class 400 design, classed by ABS, and will have a rated water depth of 400 feet, accommodation for 150 personnel, and significant offline handling features.

Contract commencement is expected in December 2012 in direct continuation of shipyard delivery, currently anticipated to be late November 2012.

Costa Concordia Crew Honored With Award - September 27, 2012.

There were a number of mistakes made by multiple people that ultimately led up to the January 13 wreck of the COSTA CONCORDIA on the island of Giglio. Unfortunately, these mistakes have mostly over shadowed what went right that night.

Yes, 32 people died, but more than 4,000 were rescued. And that’s why the crew of the COSTA CONCORDIA on Wednesday was presented with the prestigious “Seafarer of the Year” award at the Lloyds List Global Awards ceremony in London.

In making their selection, the judges for Lloyd’s List cited the crew for the “genuine examples of bravery and professionalism” and noted that if not for the “skilled response” of the majority of the crew, “the loss of life could have been far higher.”

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Venezuela to Ship Up to 400,000 bcd to India - September 25, 2012.

Venezuelan state oil monopoly Petroleos de Venezuela (PdVSA) signed a 15-year crude supply contract with India’s Reliance Industries Limited that will send as much as 400,000 barrels a day to the Asian country over the long term.

The contract, inked by officials from both countries, will begin with shipments of 300,000 barrels and increase over time, Oil Minister Rafael Ramirez said.

P.M.S. Prasad, executive vice president at Reliance, said the crude will feed India’s Jamnagar Refinery and will help the rapidly growing Asian economy meet its ever-growing energy needs. He said the supply contract could run longer than 15 years.

L&B Assigns Cuban Salvors to save the Hansa Berlin - September 19, 2012.

Hamburg-based owner/managers Leonhardt & Blumberg report that they have appointed local salvage company Antillana De Salvamento for the salvaging of their container vessel HANSA BERLIN, which is currently aground some 20 miles off the Cuban coast.

The vessel suffered an engine failure during Tropical Storm Isaac on 26 August and was pushed up on Cuban shoals west of Havana . The ship owner reports there were no injuries to crew and no pollution of the environment as a result of the incident.

In coordination with its partners Titan Salvage and T&T Biso, Antilliana De Salvemento expect to commence salvage operations later this week. Salvage experts will start with pumping of the fuel from the vessel’s bunker tanks and the removal of the cargo of containers.

BP Finds Buyer for U.S. Gulf Assets - September 11, 2012

BP PLC reached a deal to sell some of its Gulf of Mexico offshore oil fields to Plains Exploration & Production Co. for US$5.55 billion, as BP continues to divest itself of assets to pay for the 2010 oil spill in the region.

BP is selling its interests in several assets: the Marlin hub–consisting of the Marlin, Dorado and King fields–Horn Mountain, and Holstein. The deal also includes BP’s stake in two non-operated assets: ExxonMobil Corp. operated Diana Hoover and the Ram Powell field, which is operated by Royal Dutch Shell PLC unit Shell Offshore Inc. BP had said in May it would put interests in these fields on the auction block.

Plains also said it concluded a separate deal with Shell to buy its controlling stake in Holstein for US$560 million.

U.K.-based BP, among the largest global oil producers, has been selling off assets to help pay for cleanup and other costs related to the April 2010 drilling-rig explosion that killed 11 people and resulted in a massive oil spill.

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MAYARO STUDENTS LEARN ABOUT THE MARITIME INDUSTRY

Capacity building is at the core of National Energy Corporation’s CSR Program targeted toward its fence-line communities. The new Energy Port in Mayaro will become operational in 2013 and NEC is focused on ensuring that members of the Mayaro community are technically equipped to handle some of the new jobs that will become available at the facility.

Students visited the Trinidad and Tobago Fast Ferry.

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Eight (8) young people from Mayaro, between the ages of 15 and 17, were given the opportunity to learn about the Maritime industry as part of an NEC sponsored two-day workshop.

On August 14th and 15th the students visited the Trinidad and Tobago Fast Ferry, CARIDOC, NEC and PLIPDECO where they toured the facilities and learned more about the services provided by each company and the job opportunities which exist.

Commenting on the programme, the students congratulated NEC on taking the lead to ensure that they were provided with the necessary information and suggested that the programme be continued in the future.

Students touring the port of Point Lisas, Trinidad.

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ENERGY DEMAND TO DRIVE GROWTH IN DEEPWATER RIGS Global energy needs will continue to drive demand for the specialized drilling rigs needed to tap ever-deeper offshore oil fields through the end of the decade, fuelling increases in daily rental rates as countries such as Brazil exploit recent discoveries.

Jackup Rig “ATWORD BEACON” which is a type of shallow-water drilling platform common in the Gulf of Mexico that can be raised or lowered on legs attached to the sea floor.

U.K.-based Ensco, the world’s second-largest drilling company, expects growth to be led by deep-water drilling rigs and jackups, a type of shallow-water drilling platform common in the Gulf of Mexico that can be raised or lowered on legs attached to the sea floor, said Kevin Robert, Ensco’s senior vice president for marketing, in an interview. Higher rates generated by such demand should justify construction of expensive new rigs, he added.

Oil exploration is booming as companies take advantage of high international crude prices and growing demand from emerging markets such as Brazil, China and India. Important oil-producing regions such as the Gulf of Mexico and North Sea have been joined by new frontiers

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in Asia-Pacific, Brazil and West Africa to push exploration efforts to levels not seen since 2005, Mr. Robert said.

“The Gulf of Mexico has really bounced back,” he said, adding that the number of rigs working in the Gulf should exceed the number drilling before the Macondo disaster of 2010. Industrial growth in China, meanwhile, has caused never-before-seen demand for rigs targeting previously ignored natural-gas fields in the Asia-Pacific region, he added.

Exploration work, which can be volatile depending on commodity prices, typically leads to longer-term contracts as new discoveries are developed.

“Good exploration spending bodes well for development drilling five or six years from now,” Mr. Robert said. Development drilling typically yields the five- to 10-year contracts that are the industry’s bread and butter.

That is especially evident in Brazil, home to some of the world’s largest discoveries over the past 20 years. State-run energy giant Petrobras plans to spend $237 billion through 2016 to develop an ultra-deep-water province known as the presalt. The fields are expected to push Petrobras’s crude oil output to 4.2 million barrels a day, more than double current production, by 2020.

Brazil represents more than half of the world’s demand for deep-water drill ships and semi-submersible rigs, with 11 of Ensco’s fleet of 70 rigs drilling there, Mr. Robert said. Ensco considered participating in a tender to build rigs in Brazil, but opted not to bid because it already had a construction programme under way in Singapore, he said.

Ensco already adheres to stringent rules on locally produced goods and services, with about 70% of the crews operating offshore composed of Brazilians, according to the executive.

Mr. Robert downplayed concerns about growing government oversight of the oil and gas industry in Brazil, where the government recently implemented a new legal framework that will include production-sharing agreements for subsalt fields currently under its control.

“There’s no reason to be in a panic about Brazil,” Mr. Robert said. “[Brazil] is a very stable country with a practical and reasonable government that understands what they’re doing.”

President Dilma Rousseff’s 2010 election and a change in leadership at Petrobras, where Maria das Gracas Foster took over in February, likely resulted in a two-year delay to new bid rounds in Brazil, Mr. Robert said. Earlier this week, the government said it would hold a new concession auction in May and the first subsalt auction in November.

Recent changes show Brazil is being careful about how it wants to develop an important natural resource, and that is likely good for business, he said. “It bolsters confidence in the ability of the government to manage this and give long-term business to service contractors.”

Uncertainty is what causes companies to opt out of investments, but Brazil “is trying to make sure it’s clear how to get involved there,” Mr. Robert said.

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Recent court cases against U.S. oil major Chevron Corp (CVX) and rig operator Transocean Ltd. (RIG), which face operating bans and lawsuits related to an offshore oil spill last year, also aren’t a concern, Mr. Robert said.

“It doesn’t affect our outlook on Brazil, just like Macondo has not affected our outlook on the Gulf of Mexico,” he said. “We’ve had oil spills in the North Sea. Brazil is not the only place where these types of things happen.”

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“As we look ahead into the next century, leaders will be those who empower others.”

- Bill Gates

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MARITIME INDUSTRY WEB LINKS

ATWOOD OCEANICS, INC. - www.atwd.com/

AUSTAL - www.austal.com/

CARIBBEAN SAFETY PRODUCTS LIMITED (CSP) - www.caribbeansafety.com/

CONRADO BEACH RESORT LIMITED - www.conradotobago.com/

COMPREHENSIVE INSURANCE BROKERS - www.insurance.co.tt/

DOCKWISE - www.dockwise.com/

ENSCO - www.enscoplc.com/

FEDEX CORPORATION - www.fedex.com/

HELLMANNS WORLDWIDE LOGISTICS - www.hellmann.net/

MARITIME PRESERVATION LIMITED - www.maritimepreservation.net/

NATIONAL ENERGY CORPORATION OF T&T LTD: www.nec.co.tt/ NEW LA BREA VISION - www.facebook.com/New-La-Brea-Vision/ NEW LA BREA VISION - www.issuu.com/newlabreavision/

PANAMA CANAL AUTHORITY - www.pancanal.com/eng/

PETROBRAS - www.petrobras.com/

POINT LISAS INDUSTRIAL PORT DEVELOPMENT CORPORATION: www.plipdeco.com/

QUALITECH MACHINING SERVICES LIMITED - www.qmstt.com

SHIPPING SOLUTIONS & SERVICES LIMITED - www.shippingsolutionsandservices.com/

SHOES INDUSTRIAL SUPPLIES LIMITED - www.shoesind.com/

T&T SHIPBUILDING & REPAIR - www.tts-r.com/

T&T SHIPBUILDING & REPAIR - www.flickr.com/photos/ttshipbuildingandrepair/sets/

T&T SHIPBUILDING & REPAIR - http://tt.linkedin.com/in/shipbuildingandrepair

T&T SHIPBUILDING & REPAIR - www.youtube.com/user/degstt

T&T SHIPBUILDING & REPAIR - www.issuu.com/shipbuildingandrepair

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Blue highlighted links indicate additional websites added in this month’s newsletter. Red highlighted links indicate Advertisers for the current issue.

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TRINIDAD AND TOBAGO SHIPBUILDER AND REPAIR NEWS PAST ISSUES

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FOR YOUR INFORMATION

To read ‘DEVELOP THE SOUTH WEST’ article, please click: http://www.newsday.co.tt/business/0,166712.html

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CONTACT INFORMATION

Mr. Wilfred de Gannes, Deputy Leader, T&T Shipbuilding and Repair Cluster, Post Office Box 2853, Chaguaramas, Trinidad and Tobago. Tel: +1(868) 753-6057

Fax: +1(868) 662-6326 Skype: TT SHIPBUILDING AND REPAIR E-mail: [email protected] Website: http://www.tts-r.com

Trinidad and Tobago Shipbuilder & Repair News is edited by T&T Shipbuilding and Repair Deputy

Leader Wilfred de Gannes, and published monthly by the Shipbuilding and Repair Development

Company of Trinidad and Tobago Limited. This newsletter is available complimentary via email.

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DEVELOP THE SOUTH-WEST OF TRINIDAD

With the National Budget, less than a week away, the Point Fortin/South Western Chamber has added its voice calling for the implementation of proper monitoring systems, inclusive of key performance indicators, to track whether the budget’s goals and objectives have been achieved during the fiscal year.

In a statement yesterday, Chamber president Nigel Minors, noted that the business organisation was in full agreement with the TT Chamber of Industry and Commerce, “with respect to the proper monitoring and reporting of any budget activity.”

He also noted that the Union Industrial Estate in La Brea was also underutilized given government’s decision to discontinue the aluminum smelter, “viable alternatives must still be shared, and implemented.”

Chamber President Nigel Minors.

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