Singapore Market Report 2014
-
Upload
asia-shipping-media-pte-ltd -
Category
Documents
-
view
260 -
download
5
description
Transcript of Singapore Market Report 2014
An Asia Shipping Media publication
Still rising? Challenges facing the Lion Republic, the world’s leading maritime centre as voted by you
Market Report 2014www.SeaShipNews.comSingapore
Daily
updates at
www.seashipnews.com
Close to you whenever you need us.
Power. Passion. Partnership.MTU Generator Set Series 4000
Our robust and reliable engines, integrated by MTU’s system expertise, meet your individual demand.With these IRONMEN engines – backed by customizable service solutions from over 1,200 authorized locations worldwide – we are here to keep you working.extramile.mtu-online.com
MTU. Going the >EXTRA MILE<.
Contents
The leading source on Southeast Asian maritime and offshorewww.seashipnews.com
EDITORIAL DIRECTOR Sam Chambers [email protected]
CHIEF CORRESPONDENT Katherine Si [email protected]
CORRESPONDENT Jason Jiang [email protected]
ONLINE EDITORHolly [email protected]
ECONOMISTGary Bowerman
All editorial material should be sent to [email protected] or mailed to Office 701, 9 Renmin Lu, Zhongshan District, Dalian, China 116001
COMMERCIAL DIRECTOR Grant [email protected]
SALES DIRECTORHelen [email protected]
Advertising agents are also based in Tokyo, Seoul and Oslo – to contact a local agent please email [email protected] for details.
MEDIA KITS ARE AVAILABLE FOR DOWNLOAD AT WWW.ASIASHIPPINGMEDIA.COM
All commercial material should be sent to [email protected] or mailed to Asia Shipping Media, 120 Telok Ayer Street, Singapore 068589
DESIGN Tigersoft Pte LtdPrinted in Singapore
Copyright © Asia Shipping Media Pte Ltd (ASM), 2014.
Although every effort has been made to ensure that the information contained in this review is correct, the publishers accept no liability for any inaccuracies or omissions that may occur. All rights reserved. No part of the publication may be reproduced, stored in retrieval systems or transmitted in any form or by any means without prior written permission of the copyright owner. For reprints of specific articles contact [email protected].
3 Demographic timebomb
5 Setting the scene
9 The state of the economy
13 Future proofing the port
15 Yards gear up
19 LNG hub aspirations
21 Finance discussed
23 Owners battle back
29 Offshore diversification
35 New entrants
41 Shipmanagers set up shop
42 Women at sea
43 HR issues
47 Bunkering focus
Jia you Singapore!52 Battling pirates
55 Technology roundup
57 More cruise infrastructure
58 What events to attend
59 Travel guide
60 Singapoll
The Maritime and Port Authority of Singapore (MPA) develops and promotes Singapore as a premier global hub port and an international maritime centre, and advances Singapore’s maritime interests.
Shaping Singapore’sMaritime Future
Editor’s Comment
Demographic danger has many on edge
Much of this magazine focuses
on the excellent job Singapore
is doing in future proofing its
transport infrastructure whether it be
from developing a new maritime cluster in
the west of the republic, investing heavily
in research and development or ensuring
the financial conditions are attractive to
the many shipowners that now call the
city-state home. All commendable, but
what cannot be changed – and what may
well slow this maritime juggernaut – is
demographics and more specifically the
aspirations of the nation’s youth.
Goldman Sachs syndrome is how one
shipping executive described the problem
to me rather memorably; the blind pursuit
of getting a job in finance above all else.
The fact is – as borne out via the
results from our special poll carried on
page 60 – the republic is in danger of
running out of enough qualified talent to
fill its ever expanding maritime scene.
This was not lost on Patrick Phoon,
president of the Singapore Shipping
Association (SSA), who noted at SSA’s
packed annual dinner, “Without the young
the industry cannot grow.”
A look ahead suggests the ranks will
get more difficult to fill based simply on
demographics.
Despite the best efforts of the
Singaporean government to encourage
larger families the fertility rate still stands
at just 1.2 berths per woman.
Higher education standards, a
determination to forge a career in their
20s, and perhaps most pertinently
sensationally expensive property
prices have all played their part in this
demographic timebomb.
“Salaries have not kept pace with the
increase in the cost of living,” comments
one of the close to 500 respondents who
filled in our online poll on Singapore.
As a result of this jobs-first mentality,
the population is ageing rapidly like a
silver tsunami, forecast to hit a median
age of 47 by 2030, up from the current
39. There’s also a noticeable decreasing
growth in what still remains a sizeable
foreign population.
Filling senior positions in shipping
has become fraught with difficulty. We
are regularly regaled with stories of
frustration from firms looking to set up
in Singapore but having to delay and
delay as they wait to find the right people.
Nevertheless, as befits the world’s most
leading maritime centre (the view of 79%
of our readers), companies continue
to flock here. Take a look at our New
Entrants section on page 35 for who’s set
up shop here this year.
These new firms on Singapore’s shores
are lured by the remarkable growth in
shipownership here. Compared to about
30 groups 10 years ago, Singapore now
has more than 130 international shipping
groups covering the container, tanker,
bulk shipping and the offshore energy
sectors.
Our regular annual shipping report
serves to highlight everything that is
happening in this 49-year-old country,
and on the following pages you will be
able to find every key moment in another
frenetic year here via our useful timeline
contained at the bottom of every page
starting overleaf.
And frenetic it most certainly is.
Keeping track of what’s going on, even
from an event and social networking point
of view, can be bewildering for many so
we have provided a useful guide to the
must-attend events for next year, which
you can find on page 58.
As ever, we hope you enjoy the
contents on the following pages – any
comments, questions or quibbles
don’t hesitate to drop me a line: sam@
asiashippingmedia.com.
Sam ChambersEditor
WHEREVER YOU SAIL...
MARINE LUBRICANTS
provides cost efficient lubrication solutions and expert technical services to the shipping industry.
For worldwide and 24/7 high performance marine lubricants deliveries contact our global team:
KPI Marine Arctic.indd 1 29/05/13 11.56
UNIMARINE
www.unimarine-lubricants.com
5www.seashipnews.com
Introduction
WHEREVER YOU SAIL...
MARINE LUBRICANTS
provides cost efficient lubrication solutions and expert technical services to the shipping industry.
For worldwide and 24/7 high performance marine lubricants deliveries contact our global team:
KPI Marine Arctic.indd 1 29/05/13 11.56
UNIMARINE
www.unimarine-lubricants.com
January
1 2 3 4 5 6 7 89
10
Kreuz Holdings announces plan to delist from SGXMaritime media veteran Helen Ong joins Asia Shipping Media
APL president announces major restructuring
The authorities have mapped out the city’s maritime future
Next generation port city
A remarkable 79% of you reckon
that Singapore is now the leading
maritime centre in the world. The
question was one of a series posed for
a poll, which drew 483 responses – full
results are carried on the back page. The
latest statistics show that compared to
about 30 groups 10 years ago, Singapore
now has more than 130 international
shipping groups as well as 30 law firms
with maritime practices, 20 Lloyd’s
insurance syndicates, more than 25
banks with shipping portfolios and more
than 30 key shipbroking companies. A
ringing endorsement of the government’s
impressive transformation of the Lion
City over the past 10 years into the
world’s shipping city sine qua non? Not
necessarily. As is so often the case with
this fast moving country, the authorities
are not resting on their laurels. Indeed,
to listen to leading names in the shipping
hierarchy, you’d believe Singapore was
still a maritime work in progress.
Planning ahead is very much the
thinking among the heads of the nation’s
maritime bodies. Witness the huge shift
in port operations from the city centre
to Tuas in the west of the republic as
detailed on page 13 as well as the decision
to relocate some of the island’s shipyards
(see page 15).
With global trade growing at a rate
of knots there is a risk that spending
on ports will not keep up, Lui Tuck Yew,
Singapore’s minister of transport warned
at the inaugural Danish Maritime Forum
in October.
Lui predicted global trade will double
by 2030, with shipping routes becoming
more crowded than ever.
“Spending on port infrastructure is
vital,” Lui said, something Singapore is
doing to the tune of billions of dollars.
Finance and insurance focusEnsuring Singapore has every facet of
maritime licked, Patrick Phoon, president
of the Singapore Shipping Association
(SSA), has urged the country to further
develop and strengthen the pillars of
marine insurance and shipping finance if
it is to be fully regarded as an influential
international maritime centre.
Addressing a gala dinner to celebrate
the SSA’s 29th anniversary, Phoon said
work was underway to achieve these
goals. He told the gathering of over 2,000
guests at the Sands Grand Ballroom:
“Some of you may be aware that over
the past year, the SSA Council had
commissioned consultants to assist in
producing reports in these two areas.
“In the field of marine insurance, a
working group, headed by SSA councillor
Mr Tan Chin Hee, has been tasked to
explore the creation of a Singapore War
Risk Mutual that would take advantage
of economies of scale to secure the best
possible cover for crew and ships, thereby
achieving significant cost‐savings for
Singapore shipowners.”
He added: “In the field of shipping
finance, SSA Councillor Mr Lee Keng
Mun heads the working group to follow
up on some of the key recommendations
proposed by the report with the aim of
developing Singapore as the premier ship
finance centre in Asia. Both projects are
still works in progress and all I can say
for now is that there will be exciting times
ahead.”
Favourable business environmentThose in shipping are fortunate to have
the Maritime and Port Authority (MPA)
as gatekeepers of the nation’s shipping
development.
The latest Pro-Enterprise Index,
a measure of how business-friendly
government agencies are, saw the
MPA beat out 26 other government
departments to be crowned most
responsive to customers, and most
transparent in their rules.
Senior minister of state for finance
and transport Josephine Teo commended
the MPA and said government regulations
must adapt to changing business needs in
the areas of costs and constraints.
She noted regulations must actually
produce the outcomes that are helpful
to the business community. Moreover,
she said, “Smart regulations should be
efficient and forward-looking in their
design and enforcement.”
MPA was named the top agency for the
third consecutive survey. Said MPA ceo
Andrew Tan: “We are open and receptive
to new ideas, and we listen. We are also
responsive and anticipatory of the needs
of the industry and we act quickly. We also
collaborate very closely with the industry
and engage them in all the measures we
introduce.”
Speaking at a dinner hosted by the
KVH TracPhone® V11ip – The only truly global VSAT solution, now with IP-MobileCastTM content delivery service
SM
®
Dual-mode C/Ku-band VSAT with built-in network management delivers seamless, global coverage and the fastest data speeds.
Plus: KVH offers the single provider advantage for service and support. Get the whole story at:
www.minivsat.com/VIP
The World in One Dome
• Internet café & VoIP calling for improved crew morale
• IP-MobileCast provides:
• Meet key requirements of MLC-2006
FREE
MLC-2006 Guidekvh.com/mlc
©2014 KVH Industries, Inc. KVH, TracPhone, IP-MobileCast and the unique light-colored dome with dark contrasting baseplate are trademarks of KVH Industries, Inc. mini-VSAT Broadband is a service mark of KVH Industries, Inc.
- Licensed news, sports, and movies for crew entertainment - Critical operations content; e-charts, weather, and training
Asia-Pacific Headquarters: Singapore [email protected] +65 6513 0290
14_KE_V11IP_ASM.indd 1 11/3/14 10:42 AM
7www.seashipnews.com
January
11 12 13 14 15 16 17 18 1920
Bunker licences of Excel Petroleum Enterprise and Lian Hoe Leong & Brothers cancelled
Dagfinn Lunde becomes chairman of Executive Ship Management
Vopak leads consortium to operate SE Asia’s first subterranean hydrocarbon storage facility in Jurong
Bunker trader Alliance Oil Trading’s licence cancelled
Introduction
Singapore Nautical Institute in October,
Tan said, “Singapore is investing in
infrastructure and technology to ensure
that our port remains highly efficient and
competitive.” He added: “We are developing
our maritime cluster by attracting maritime
companies to Singapore.”
Given Singapore’s limited land and
manpower resources, the maritime
industry must make “a major push”, Tan
said, for productivity-driven growth.
With this in mind, in June last year,
MPA launched a S$25m productivity
programme.
Tan, as with so many of his colleagues
high up in the maritime fraternity, are
clearly believers in the old adage: He who
fails to plan, plans to fail.
Singapore’s place in world shipowning Singapore fleet breakdown
3
1
2
5
China
Greece
Japan
Singapore
4 Germany
3,844
228.86m
98.71bnS
#DWT
3,880
204.99m
78.01bnS
#DWT
2,644
70.01m
53.15bnS
#DWT
1,819
88.54m
39.66bnS
#DWT
S
#DWT
4,157
319.06m
115.4bn
LNG
Bulker
Container
Tanker
4
263
980
0.61m
0.88m
44.55m
0.64bn
5.6bn
LPG
1.49m
2.55bn
19.31bn
S
#DWT
S
#DWT
S
#DWT
S
#DWT
S
#DWT
472
41m
11.55bn
100
Key Total number of ships including afloat and on order
DWT Total tonnage including afloat and on order
Total value of the fleet including afloat and on order
data taken on September 1, 2014
S
#DWT
38%DWT
growth y-o-y
45%DWT
growth y-o-y
99%DWT
growth y-o-y
17%DWT drop y-o-y
27%DWT
growth y-o-y
9www.seashipnews.com
Singapore’s muted vibe has some on edge
Economic sails still require more wind
The still uncertain global outlook
continues to weigh heavily on
the Singaporean economy, which
expanded by 3.5% year-on-year in the
first half of 2014. Although growth of
2.4% in the second quarter was ahead
of expectations, Singapore’s Ministry of
Trade and Industry (MTI) cautioned that
this was achieved amid a cross-sector
slowdown. This reticent approach was
confirmed in September, with Singapore’s
exports in the first seven months of 2014
dropping 2.4% year on year.
Looking ahead, more buoyant growth
is hugely conditional. The World Bank
expects the global economy to expand
by 2.8% this year, increasing to 3.4%
in 2015. Hence, as is often the case,
Singaporean economic planners are
sitting on the cautious part of the fence
with GDP growth predicted to be between
2.5% and 3.5% in 2014, compared to
4.1% in 2013. By comparison, the Asian
Development Bank has lowered its 2014
forecast from 3.9% to 3.5%, and its 2015
projection is 3.9%. With growth slowing,
inflation is being closely monitored, and
2014 is expected to record a 1.8% price
growth, down from an earlier estimate of
2.2%.
A hoped-for trade boost from ASEAN
economic integration in 2015, plus an
upswing in export activity from China
and India and more robust consumer
purchasing in European and US markets
would enliven Singapore’s muted
vibe. That said, a quarterly survey of
economists released by the Monetary
Authority of Singapore in September
proved that unexcitable economic
sentiment pertains for the foreseeable
future, with GDP growth of 3.7% predicted
for 2015.
Tangible signs of uncertainty have
troubled Singapore’s economists
throughout the year. The Singapore dollar
endured a difficult start to 2014, rallied
strongly in June and July but then dipped
again in August and September. And while
manufacturing output in Q2 rose by 1.5%
compared with the same 2013 period,
it represented a stiff fall from the 9.9%
expansion in Q1.
This stagnation was officially
attributed to a Q2 reduction in electronics
output and slower growth in transport
engineering. Meanwhile, wholesale
and retail trade saw sluggish growth of
1.7% year-on-year, and growth in the
As is often the case, Singaporean economic
planners are sitting on the cautious part of the fence
Economy
January
21 22 23 24 25 26 27 28 29 30 31
Kim Heng Offshore & Marine Holdings listsHerbert-ABS Software Solutions opens local office
Singapore completes its fist ship-to-ship transfer involving a cargo of LNG
10 www.seashipnews.com
transportation and storage sector slumped
to 2%, from 5.5% in Q1.
Economists point out that Singapore is
confronting a structural shift in emphasis,
as services increasingly dominate. The
contribution of the services sector to GDP
increased from 64% in 2003 to 70% in
2013, while manufacturing declined from
26% of GDP in 2003 to 19% in 2013.
Certain manufacturing sectors, notably
biomedical, transport engineering and
precision engineering, have performed
strongly in recent years, however, and
their continued strength is considered
vital to economic growth.
A tapering of the previously upward
curve of inbound tourism heightened
fears about the short-term impact of this
rebalancing. In 2013, goods and services
consumed by travellers accounted for 15%
of services exports, while 34% came from
the transport of passengers, charter of
carriers with crew and related services.
Tourist arrivals, which generated
revenues of S$23.5bn in 2013, dipped
2.8% year-on-year in the first half of
2014, largely attributed to a 30% drop
in tourist arrivals from China. Chinese
travellers have tended to shun Southeast
Asia this year following the disappearance
of flight MH370, kidnappings of Chinese
nationals in Malaysia, anti-Chinese
protests in Vietnam and political unrest
in Thailand. This has hurt Singapore, as
Chinese tourists often combine it with one
or more of those three countries when
visiting Southeast Asia – and their coveted
spending power is sorely missed.
Although tourism receipts increased by
5% in the first half of the year, concerns
are growing that emerging competitor
destinations in Asia are eating into
Singapore’s market. While its two casino-
based ‘integrated resorts’ – Marina Bay
Sands and Resorts World Genting – have
earned huge revenues, growth has slowed.
Although a third resort could earn a
concession after the current government-
mandated duopoly expires in 2017, the
appetite for another casino palace seems
muted. Meanwhile, countries ranging
from Vietnam to Sri Lanka to South Korea
– and pending a government decision,
maybe Japan – are forging ahead with new
Macau-style hotel, entertainment, dining
and gaming mixed-used developments.
Globally competitiveWhile a haze of consternation hangs over
the southern tip of the Malay Peninsula,
Singapore’s international economic
status remains buoyant. The city-state
retained its second place ranking (behind
Switzerland) for the fourth consecutive
year in the World Economic Forum (WEF)
Global Competitiveness Report 2014-
2015. The report noted “outstanding
and stable performance across all the
dimensions of the Global Competitive
Index,” and remarked that the Singaporean
economy is supported by “a sound
macroeconomic environment and fiscal
management” and a strong budget surplus.
Future growth will require sustained
innovation, particularly as the small
population continues to grow.
Singapore counted 5.47m residents
in 2014, an increase of 7.74% since
2010. “Singapore’s private sector is
fairly sophisticated and becoming
more innovative, although room for
improvement exists in both areas,
especially as these are the keys to
Singapore’s future prosperity,” the MEF
adds.
At present, Singapore is treading water
and seeking satisfactory rather than
covetous growth. Unless the global winds
of economic sentiment blow stronger than
at present, this may represent the crest of
its short-term economic ambitions.
Singapore is confronting a structural shift in
emphasis, as services increasingly dominate
Singapore’s GDP by sector, Q2 2014 v Q1 2014
Q2 2014 (yoy US$m)
Q1 2014 (yoy US$m)
GDP at Current Market Prices 93,931 95,508
Consumer Price Index 117.3 117.1
Exports
Re-exports
Imports
Manufacturing
Construction
133,304
63,014
120,184
18,542
4,322
128,250
60,075
117,801
18,081
4,378
Wholesale & Retail Trade
Transportation & Storage
Accommodation & Food Services
Information & Communications
Finance & Insurance
Business Services
16,956
7,437
1,756
3,424
10,912
12,452
16,331
7,222
1,779
3,328
10,617
12,320
Source: Singapore Ministry of Trade & Industry
February
1 2 3 4 5 6 7 8 9
10
Containership and chemical tanker collide in Singapore Strait, third accident in 12 days
Economy
THESTAGE IS YOURS
www.nor-shipping.com
Organizer:
Join your peers, partners and prospects at Nor-Shipping, where the maritime world gathers in Norway to explore the future.
ww
w.s
ay.b
iz
Main Sponsor: Leading Sponsors: Partners:
PSA_Powering_A4_FA.indd 1 20/3/2012 1:14:38 PM
13www.seashipnews.com
11 12 13 14 15 16 17 18 19 20
Otto Marine takes over the 51% stake held by Hoe Loeng Corporation in joint venture, Aries OffshoreMalaysia’s Yinson Holdings forms Singapore subsidiary, Yinson Production
February
The authorities have mapped out the coming 20 years of port operations already
Future proofed
Port
Anyone who has been to Singapore
recently cannot have been
impressed with how the city-
state is future proofing its transport
infrastructure. As visitors peer out from
their plane coming into land diggers are
carving out what will become a third
runway and a fourth terminal. Glance west
from on high and the eagle-eyed might
also be able to spot plumes of muddy
water flying into the air as dredging for a
brand new mega port gets underway.
Singapore is clearly good at planning
ahead, unlike many others. Lui Tuck
Yew, Singapore’s minister of transport,
speaking at the inaugural Danish
Maritime Forum in October, warned that
globally, “Infrastructure growth will lag
behind demand.”
Not so in Singapore where a
combination of real estate developers
eyeing prime central port areas as the
next big shopping mall as well as a
genuine need to expand terminals will see
all of Singapore’s port areas shift to Tuas
in the west of the republic by 2027. The
new premises will be able to handle 65m
teu a year.
Dutch dredging firm Royal Boskalis
Westminster (Boskalis) has in consortium
been awarded work associated with the
expansion of the Singapore Tuas Mega
Port development worth S$960m.
It is expected that the majority of the
24.5m cu m of sand required for the
project will be supplied by bulk carriers.
In addition to the land reclamation work,
the consortium will undertake dredging
and construct 3.4 km of quay wall. Work
started in August and will last until late
2018.
Singapore is also spending big to
upgrade its port management capabilities.
For instance, a new $54m initiative will
research port management and urban
congestion to help boost the country’s
port efficiency.
The Urban Computing and Engineering
Centre of Excellence, a joint venture
by the country’s Agency for Science,
Technology and Research (A*STAR),
Singapore University and Fujitsu,
will research sustainable options for
improving port operations. The project
examines the flow of shipments to and
from the port in order to reduce wait
times for ships, and will also help the port
authority predict volumes due for arrival.
Meanwhile, trials are under way to test
automated guided vehicles (AGVs) that,
if fully implemented, will see the vehicles
buzzing through busy terminals carrying
containers without the need for drivers.
“It’s conceivable that in the not-too-
distant future, we will see our terminal
operations as automated as possible,”
reckons Andrew Tan, chief executive of
the Maritime and Port Authority (MPA).
In November, the MPA signed a
memorandum of understanding with the
Singapore Management University (SMU)
to promote research and innovation
for a clean and green next generation
port. Topics include clean energy and
environment, energy management,
simulation and data analytics for maritime
applications.
At the signing, Tan commented,
“Singapore is committed to promoting
a maritime industry that is not only
competitive but also efficient, responsible
and sustainable.”
In the first nine months of 2014,
Singapore port moved a total throughput
of 28.1m teu, up 3.6% compared to
27.12m teu in the same period of last
year.
15www.seashipnews.com
February
21 22 23 24 25 2627
28
BW Group buys out Heidmar’s stake in product tanker pool, WomarChemoil Energy announces it will delist
Singapore PM opens nation’s first LNG terminal
Marco Polo Marine expands into the jack-up market with $214.3m rig order at PPL ShipyardJurong Shipyard lands huge contract from Transocean for up to five drillships worth $540m each
There’s been a host of shipyard buyouts this year
Sunrise industry? Yards
The obituaries for Singapore’s
shipyards have been written
countless times, but once again this
often maligned ‘sunset’ industry has had
another banner year defying the odds.
Indeed, new investment across the board
at Singapore’s myriad shipyards would
suggest there’s a long future ahead for
most of them.
Among the most significant
investments has been by Sembcorp
Marine at its new giant yard in Tuas.
Sembcorp Marine will invest in a
multi-functional steel fabrication facility
which will, it says, significantly enhance
automation and productivity at its
offshore rig building, conversion and
production and ship repair businesses.
Total investment in the fabrication facility
is approximately S$222m.
“When phase two is completed, we
will have seven dry docks in operation
including the four VLCC docks in phase
one. This will give the yard greater
flexibility and enable us to keep work
flowing continuously,” said Sembcorp
Marine president and ceo, Wong Weng
Sun.
Sembcorp Marine’s main rival, Keppel,
has had a busy year at its yards all over
the world. Among banner projects is the
world’s first FLNG conversion as well as a
raft of FPSO conversions.
Michael Chia, managing director of
marine and technology at Keppel Offshore
& Marine, commented, “We are seeing an
increasing demand for more sophisticated
FPSOs which can operate in harsher
environments, more challenging and
deeper oil and gas fields.”
Keppel Shipyard confirmed in the
summer the signing of a contract with
Golar Hilli Corporation, a subsidiary of
Golar LNG, to perform the conversion of
an existing Moss LNG carrier, the Hilli,
into a floating liquefaction vessel. The
contract is worth around $735m and
includes options for two further LNG
carriers to be converted.
This July Keppel’s joint venture yard
in Azerbaijan won its first newbuild
contract, a subsea construction vessel
for BP, something Chia described as a
“significant milestone” for Keppel in its
‘Near Market, Near Customer’ strategy.
In April, Keppel Offshore & Marine,
through its wholly owned subsidiary, FELS
Offshore, signed a management services
agreement with Titan Petrochemicals
Group and Titan Quanzhou Shipyard to
manage the Chinese shipyard.
Shipbuilding shiftsThis October, Triyards Holdings
purchased Strategic Marine’s shipyards in
Singapore and Vietnam for a total sum of
A$23.3m.
Meanwhile, in August Aztech Group
bought out the Glenn Marine Logistics
Base in Singapore for S$11m.
Glenn Marine, which is involved in
the repair of ships, vessels, and tugs as
well as marine logistic services provision,
has been renamed Az Marine Offshore
Services.
The yard has an area of approximately
251,500 sq ft and water frontage of about
2,475 ft in length, including a part four-
storey/part six-storey detached factory
with an open yard space of over 200,000
sq ft.
Michael Mun, the founder, chairman
and ceo of Aztech Group, said: “The
We are seeing an increasing demand for
more sophisticated FPSOs
BY
SafeEdge THE MAN-HOLE PROTECTION COVER.
Technical Specifications [email protected]
www.rustibus.com
BERGEN NORWAY SINGAPORE ANTWERP BELGIUM HOUSTON USA
Designed especially for the marine industry. This unique cover is specifically designed to allow ventila-tion and utilities to be accessible while providing an effective fall prevention system to protect the crew from those easily overlooked dark holes in the deck.
The durable, high visibility colour foot-rail protects you when the hatch is open and with its simple fitting and locking mechanism makes this a safe investment for your workers and crew.
Made in the USA Patented and trademarked .
Length: 740 mm / 29” (600 mm / 23”)Width: 550 mm / 211/2” (400 mm / 15”)Height: 110 mm / 41/3”Weight: 9,6 kg / 21 lbs
Rustibus® is designed to de-scale and power brush ship decks, hatch covers,tank tops, etc. free from paint and rust!
Before
Rustibus® 1200 Series Rustibus® 30 Series
After
THE BEST SOLUTIONS FORSURFACE PREPERATIONAT SEA.
17www.seashipnews.com
BY
SafeEdge THE MAN-HOLE PROTECTION COVER.
Technical Specifications [email protected]
www.rustibus.com
BERGEN NORWAY SINGAPORE ANTWERP BELGIUM HOUSTON USA
Designed especially for the marine industry. This unique cover is specifically designed to allow ventila-tion and utilities to be accessible while providing an effective fall prevention system to protect the crew from those easily overlooked dark holes in the deck.
The durable, high visibility colour foot-rail protects you when the hatch is open and with its simple fitting and locking mechanism makes this a safe investment for your workers and crew.
Made in the USA Patented and trademarked .
Length: 740 mm / 29” (600 mm / 23”)Width: 550 mm / 211/2” (400 mm / 15”)Height: 110 mm / 41/3”Weight: 9,6 kg / 21 lbs
Rustibus® is designed to de-scale and power brush ship decks, hatch covers,tank tops, etc. free from paint and rust!
Before
Rustibus® 1200 Series Rustibus® 30 Series
After
THE BEST SOLUTIONS FORSURFACE PREPERATIONAT SEA.
March
1 2 3 4 5 6 7 8 9 10
A*Star launches maritime and offshore research lab
acquisition of our shipyard will expand
our capability to add and undertake a
vessel renewal plan more quickly when
project demand grows and make us
less dependent on third party shipyard
spaces.”
The yard will also help Az Marine get
more into the offshore space, Mun said.
In January, shipbuilder ASL Marine
Holdings paid $20m to buy Miclyn
Express Offshore’s yard in Batam, a
facility that lies adjacent to ASL’s existing
shipyard on the Indonesian island.
The yard is situated in the free
trade zone designated for shipyards
and comprises a site of 12.2 ha with
berthing quays of 220 m, two shiprepair
launchways and shipyard facilities which
cater for shipbuilding, vessels repair,
modification and mobilisation, as well as
modular fabrication services.
Also buying into a yard on Batam has
been offshore support vessel operator
Vallianz Holdings who snapped up this
September Singapore-incorporated
Jetlee Shipbuilding & Engineering and
its Indonesian entity PT United Sindo
Perkasa, who owns a fabrication and
engineering shipyard located at Kabil,
Nongsa. The purchase price was S$19.8m.
Vallianz ceo, Darren Yeo, said of the
deal, “With direct ownership in a shipyard
facility, Vallianz will have its own marine
base to dock and carry out maintenance
operations for our vessels and third-party
vessels that are managed by the group.
As we continue with our fleet expansion
program, we expect to reap greater cost
savings and operating efficiencies from
having our own marine base as compared
to leasing third-party shipyards. The
shareholders of Jetlee are industry
veterans with decades of experience in the
marine sector.”
China looms largeDespite all this clear bullishness on local
shipyard prospects the unavoidable fact
is that Singapore is losing its grip on its
formerly very solid jack-up orderbook.
Singapore has been replaced by China
as the world’s biggest builder of jack-up
rigs, with 33% of the global orderbook
compared to China’s 47% according to
research by Douglas-Westwood.
“Given this regional industry landscape,
Singapore is in a fairly good position at
the moment,” commented Rajiv Ghatikar
from Siemens PLM Software, “but in
the face of such strong competition, the
shipbuilding industry here will need
to take measures like improving visual
planning, optimising yard resources and
improving cross-discipline engineering
and manufacturing collaboration to get
and stay on top of the game.”
Yards
In the face of such strong competition, the shipbuilding industry here will need to take measures
ATHENS GUANGZHOU HOUSTON LONDON NEW YORK PERTH SINGAPORE
ASPHALTRESEARCH
HIGHQUALITYSERVICE
TANKERS
EXPERT ISELPG
NAPHTHA
CONSULTING
CAP
ITAL
SERVICES
19www.seashipnews.com
Singapore loves to be the hub of everything. Top dog in natural gas is now in its sightsAsia’s top gas trading destination?
LNG
Singapore’s first liquefied natural
gas terminal (pictured) was only
officially inaugurated this February,
but already there’s plenty of talk of making
the Lion Republic into Asia’s natural gas
trading hub. A second receiving terminal is
now under consideration. Asia is leading
the growth in LNG demand and Singapore
wants to be at the heart of it. Globally, LNG
consumption is expected to double in the
coming two decades.
Authorities are now looking at where
best to place a second terminal, which is
likely to be completed in the early part of
the next decade.
A panel advising the government on
how to develop the republic as a gas hub
came out with its list of suggestions at the
end of October. These included developing
trading mechanisms and standards to
facilitate the growing LNG market as well
as adding more gas infrastructure.
S Iswaran, second minister for trade
and industry and chairman of the panel,
commented: “We have certain advantages
by virtue of our reputation for regulatory
standards, our connectivity to the region
and also the supporting infrastructure
that we have here because we already are
a major trading hub for oil, for example.
And some of these services, ancillary
support services can easily also support
the activities for gas.”
It might take the addition of its
neighbour, Malaysia, for Singapore to
realise its LNG trading ambitions, the head
of the republic’s top LNG trader, Pavilion
Energy, said recently. Seah Moon Ming,
the ceo of the firm set up by sovereign
wealth fund, Temasek Holdings, said the
two countries could set up an Asian LNG
price marker as well as the development of
financial instruments such as LNG future
contracts.
“It is timely for the two countries to
work together towards an Asian LNG hub,”
he said at a recent conference, “as their
locations in the Straits of Malacca and
South China Sea are host to some of the
world’s vital sea lanes with about 50%
of global LNG supplies passing through
each year. I am confident the Asian LNG
hub would benefit many countries, even
suppliers of LNG. The United States,
a major supplier of LNG, has taken an
interest in this initiative.”
As well as soon-to-be two LNG
terminals in Singapore, Seah noted the
nearby Pengerang project in Malaysia, an
oil storage terminal with plans for an LNG
terminal and storage facilities.
Seah called for both countries to
develop an integrated gas market as part
of the wider Asian LNG hub initiative.
Pavilion Energy is working with the
Singapore Stock Exchange, International
Enterprise Singapore - a unit of the trade
ministry - and regional governments to
develop a Singapore LNG price marker,
another key plank of the republic’s gas
trading hub bid.
Singapore is already the largest oil
and petroleum products trading hub in
Asia. In recent years it has also become a
hotspot for LNG trading with companies
like Chevron, Royal Dutch Shell, BG Group
and Yamal moving their LNG trading
operations here.
March
1112
13 14 15 16 17 18 19 20UN report says North Korea smuggling arms via Singapore
FSL Trust quits bulk trades with sale of last bulker pair
21www.seashipnews.com
March
20 21 22 23 24 25 2726 28 29
31
30
Gunvor starts iron ore trading in Singapore
Swissco buys land for repair yard in Tuas
Ultimately valuation drives the location of shipping listings
Singapore not on the IPO radar
Finance
The capital markets of
Norway and New York
have been aggressively
providing equity and debt for
shipping investments. Who
can succeed in raising such
finance? Can Asian bourses
compete and play a leading
role? These were the questions
posed at Marine Money’s
annual Singapore gathering in
late September.
Andy Yeo from Pareto noted
that a total of $13bn had been
raised in the US in the six
months through to September while ABN
Amro’s Perry van Echtelt said that in all
investment classes there are still lots of
equity available.
“Last year private equity was driven
by the eco story,” van Echtelt said, adding
that newbuild ordering has subsided this
year and private equity will be looking
for an exit via the capital markets or
consolidation.
Jon Connor from HSBC observed that
Asia has contributed to 7% of equity
raised through to July this year.
“Debt capacity markets are very open
in Asia,” he insisted, adding: “Name
recognition is very key to raising capital.”
While the US and the UK are much
larger in terms of deal sizes, OCBC’s
Andy Teo said Hong Kong and Singapore
are very active maritime-wise. $1.5bn
has been raised in the equity markets in
Singapore in the last five years, he pointed
out and $5bn in Hong Kong. “Sentiment
is getting rosier,” he said . Offshore, LNG,
LPG and containers are the most popular
with both investors and customers.
Harold Malone from Jefferies pointed
out that while the US had indeed seen a
tremendous amount of capital raised it
had centred around a “narrow” amount of
sectors, principally LNG and LPG which
are in a different cyclical place to other
shipping sectors.
On the markets in general, ABN
Amro’s van Echtelt said they were moving
sideways with a great deal of volatility.
“It will be more difficult to IPO a
smaller shipping company,” he suggested.
IPOs will be driven by private equity who
will look to consolidate to gain size prior
to listing. New York will continue to be
the number one destination for shipping
share launches, he said, something all
the panel agreed with, HSBC’s Connor
stressing, “Size is absolutely paramount.”
OCBC’s Teo said IPOs would start to
come to market next year and that private
equity had not invested much in Asia to
date with the notable exception of Korea’s
financially troubled Hanjin Shipping.
Ultimately valuation will drive the
location of IPOs, maintained Thomas
Preben Hansen, the ceo of Rickmers Trust
Management.
“It needs the Singapore Exchange and
the Singapore local banks to be more
aggressive to ensure there are some IPOs
from private equity in Singapore,” he
urged.
The Singapore dollar bond markets
have been “very active” in the last two
years, according to OCBC’s Teo with
S$5bn raised just in the first nine months
of 2014.
Concluding, HSBC’s Connor said, “We
would like to see a lot more activity in
Singapore. It is all about valuation.”
Quite so, concurred Rickmers’ Hansen
before adding the spoiler: “Singapore has
simply not been on the radar. It has been
all the US and Oslo.”
Name recognition is very key to raising capital
The onlycollaborative software solution you need,to manage all commercial chartering activities
Brokers, Operators and Charterers make extensive use of these chartering tools and databases: AXSReader . Embedded AIS . Market Overview . Alerts . Commercial Vessel Position Manager . Port Library . Vessel Database . Cargo Manager . Freight Matrix . Bunker Prices . Indices . Distance Table . MessageBoard . Address Book and more ...
email: [email protected] website: www.axsmarine.com
service and quality are within your reach
THE MARSHALL ISLANDS REGISTRY
International Registries (Far East) LimitedSingapore Branchin affiliation with the Marshall Islands Maritime & Corporate Administrators
tel: +65 6226 2726 | [email protected] | www.register-iri.com
The shipowner’s preferred choice
Exclusive insights
Global network
World-respected writers
Gadgets
Acerbic comment
Heavyweight financial commentary
Why bother with an executive when you can
hear from the CEO?
www.maritime-ceo.com
www.maritime-ceo.com
23www.seashipnews.com
Shipping firms in the republic are battling their way back to profits
Different tacks
Owners
While most of its container
peers are now edging back
into the black, Singapore’s
most famous name in shipping continues
to suffer from a reversal in fortunes
and is now actively looking to hive off
businesses to get back on track. Neptune
Orient Lines’ (NOL) losses continued in
the third quarter with the company $23m
in the red compared to a net profit of
$20m a year earlier.
At the start of the year APL, NOL’s
container shipping subsidiary, announced
a raft of changes to its leadership
structure under president, Kenneth Glenn.
The new setup moves APL from a
geographically-organised structure to
a functional one, in the areas of trade,
commercial, operations, procurement and
planning and strategy.
Meanwhile, it has emerged NOL is
looking to raise as much as $1bn from
the sale of its supply chain subsidiary,
APL Logistics. NOL has sent out sale
documents to a number of possible
buyers asking for first-round bids by
the end of November. APL Logistics
accounted for 18% of NOL’s revenues
last year. Among the companies that have
made plain their keenness to acquire APL
Logistics is CJ Korea Express, the largest
Korean courier firm.
Other local containerlines have also
struggled in the downturn. In its first
ever Singapore bonds issuance local
containerline Pacific International Lines
(PIL) raised $241m this July. However, in
the run up to issuing the bonds, privately
held PIL had to release its financial
statements publically for the first time.
The containerline has been in the red
twice since 2010, notching losses of
$98.6m and $66.1m for 2011 and 2013
respectively.
Elsewhere, containerline Orient
Express Lines (OEL) is looking at entering
the Indonesian and Philippine trades.
The ceo of the firm, Biju Oommen, tells
SeaShip News, “The Indonesia and
Philippine trades are being studied
carefully, as there are opportunities
considering the growing container
volumes.” Any entrance into these trades
would be done as a joint service, he
April
1 2 3 4 5 6 78
9 10
9th Singapore Maritime Week gets underway with record 29 events
BG Group moves its HQ for and oil marketing to SingaporeSingapore mandates the use of mass flow metering systems for bunkering
Peter Tan, former ceo and founder of Sembawang Kimtrans, comes out of retirement to chair Investment Global
25www.seashipnews.com
says, much like it did this April when it
launched a new service to Vietnam with
Taiwan’s Yang Ming.
Bulk growthSuch is the scale of fleet expansion
ongoing at China Navigation that for
the first time in its 131-year history it is
looking at farming out some vessels to
third party managers. The controlled fleet
is set to hit around 80 ships following a
dramatic series of orders over the past
four years, which has also spawned a
whole new bulker division.
In 2010 China Navigation embarked on
a big fleet renewal programme with orders
for eight 31,000 dwt multipurpose (MMP)
vessels at China’s Ouhua Shipbuilding.
These ships replace eight 25,000 dwt
ships. It then ordered four 22,000 dwt
vessels at the same yard for delivery next
year. These ships will go on the company’s
Australia – Pacific Islands trades. China
Navigation also bought three ships from
Rickmers last year.
Its liner trades, operating as Swire
Shipping, now runs on 12 tradelanes.
Bolstering its position on the Pacific,
China Navigation bought out long time
partner Polynesia Line last year, and
followed this up this January with the
acquisition of Pacifica Shipping, a New
Zealand-based container feeder operator.
Further acquisitions are possible.
Tim Blackburn, managing director of
China Navigation since 2011, tells
SeaShip News: “There is scope for more
acquisitions as we look to build our liner
network in the Pacific.” The company
will target regional operators who have
long-term relationships with customers or
markets, but have felt the pressure from
the increasingly consolidated liner trades.
The other big focus under Blackburn
has been developing a new bulker entity.
Swire Bulk was formed in 2011. “It was
the opportunity to diversify into bulk at
the right time in the cycle,” Blackburn
explains. The company quickly identified
the handysize sector as the one to focus
on. It has since ordered twenty-four
39,000 dwt ships in China in the past 24
months, plus four 38,000 dwt ships at
Imabari.
In terms of percentage fleet growth few
Asian dry bulk owners are growing faster
than Thoresen Shipping this year.
Thoresen Shipping is the dry bulk
shipping arm of Thai-listed investment
group Thoresen Thai Agencies (TTA). The
business operates under three wholly
owned subsidiaries of TTA, Thoresen
Shipping Singapore (TSS) and Thoresen
& Co (Bangkok) (TCB). Singapore now is
where the commercial team is based and
all ships are flagged.
Owners
April
11 12 13 14 15 16 17 18 19 20
Malaysian tycoon Quek Leng Chan buys 3.8% stake in Ezion
27www.seashipnews.com
Managing director Ian Claxton says
the fleet will hit 30 ships by year-end, a
50% increase from the start of the year.
The fleet is made of supramaxes and
handymaxes and is a balance of geared
and grabbed fitted bulk carriers and open
hatch box shaped hold vessels.
“We are very active in the acquisition
of suitable additional tonnage,” says
Claxton.
On top of the owned vessels, Thoresen
Shipping is a significant charterer having
around an additional 25 vessels at any
one time.
This November Thoresen Shipping
launched a new commercial pooling
service, Thoresen Grabulk Pool, in
Singapore for shipowners and operators
of supramax and ultramax vessels.
Top tanker ownersOne of the blue chip names in Singapore
shipping announced succession
plans towards the end of the year. Fast
approaching his 75th birthday, Dr Helmut
Sohmen retired as chairman of BW Group
having served the company for 44 years.
Sohmen’s son, Andreas, takes his
place. He will retain his current role as
BW Group ceo until 1 April 2015, when
Carsten Mortensen, the former Norden
boss, will take on the role of ceo.
Sohmen commented: “It has been a
privilege to oversee BW’s growth from
a tanker and dry bulk business to a
significant maritime oil and gas player
involved in LNG, LPG, crude, products,
chemicals and FPSOs.”
A year and a half ago saw the creation
of a new gas carrier operator following
the merger of Epic Shipping Holdings and
Pantheon. Since then, Epic Gas has been
one of the most active owners in the Lion
Republic, setting about a rapid expansion
to make a big impact in the pressurised
LPG markets.
The company has significant backers
including Jefferies Capital Partners and
DVB Shipping Intermodal Investment
Management (SIIM) and a group of
private shareholders. The company also
has investment from one of the region’s
canniest shipping players, former Pacific
Basin boss, Chris Buttery along with his
long term business partner, Paul Over.
In May last year Lars Vang Christensen
joined the shipowner as ceo. Epic has
quickly built up a 40-strong fleet, part
of a dramatic global LPG fleet build-up
seen in the past 18 months, not that it has
Christensen too worried.
“The growth,” he says, “is in many
respects because owners like us are
seeking replacement tonnage and there
is all this talk about shale gas and
predicted need for LPG carriers – it is
a combination of fleet renewal, a slow
recovery of the world’s economy and
hence the positive implications for
pressurised LPG carriers”.
Lim Teck Cheng, the ceo of Singapore’s
largest bunker vessel operator, Hong
Lam Marine, sees something different
happening in his niche.
Singapore is the world’s largest
bunkering hub and is taking the lead with
the introduction of mass flow meters to
try to ease owners’ qualms about the right
amounts of fuel being delivered.
Lim argues that one consequence of
this quest by Singapore Inc for innovation
is a natural further culling of the number
of companies within his sector.
“When mass flow meters come in a lot
of smaller players will find it difficult,”
says Lim, who anticipates the playing field
being cut by another 10% making the
sector more sustainable in the long run.
Hong Lam Marine has 25 harbour
tankers plus 12 ocean going ships, a
mix of chemical and product tankers.
For the latter sector, Lim admits trading
conditions have turned sour of late.
“There are too many tankers for not
enough cargo so things are a bit tight
now,” he says, noting how rates are
coming down for product tankers.
Owners
April
21 22 23 2425
26 27 28 29 30
Zhu Ning, president of Nanjing Tanker, accused of money laundering in Singapore
PACC Offshore Services Holdings lists on SGX
VESSEL OWNING & CHARTERING MODERN SOPHISTICATED FLEET
MDPL www.marinedelivery.com.sg
29www.seashipnews.com
VESSEL OWNING & CHARTERING MODERN SOPHISTICATED FLEET
MDPL www.marinedelivery.com.sg
Offshore
Singapore’s many offshore support vessel operators are eyeing new markets
Global spread
Few port cities on Earth can boast
such a large and widespread set of
offshore support vessel owners.
In terms of size not many have grown
quicker than Pacific Radiance. Tracing
its roots back to 2002 when it started off
as Strato Maritime Services, involved in
chartering and technical management,
the group bought its first ship in 2004,
and rebranded as Pacific Radiance
in 2006. Nowadays, including joint
ventures, Pacific Radiance owns and
operates a total of around 150 vessels, a
mixture of tugs, barges, AHTSs, PSVs and
saturation dive support vessels.
Besides its internationally trading
vessels, the company controls around 60
Indonesian flagged vessels through joint
ventures and associate companies.
In terms of spreading its geographical
reach, managing director James Pang
tells SeaShip News he is “very excited”
by prospects in Mexico and West Africa,
specifically Nigeria, Congo and Angola
have good potential. Pacific Radiance
has been operating in East Africa for the
past three years.
It has also been a very busy year for
Singapore offshore operator Swissco
Holdings with the acquisition of rig
operator Scott and English Energy for
S$285m. The deal means Swissco now
has nine jack-up rigs to go with its 34
OSVs. There are another three more
OSVs set to deliver soon too.
Alex Yeo, the company’s ceo, explains
the rationale for the rig company buy.
“There are synergies that could be
achieved with the acquisition,” he says.
The group has since captured various
opportunities in the offshore oil and gas
industry as it penetrates the upstream
market across different geographical
regions.
Meanwhile, offshore support vessel
operator Vallianz is making moves to
bring its owned fleet up to 50 ships by
2016. With Darren Yeo as ceo Vallianz
today owns around 30 OSVs and
manages more than 50 client vessels.
Besides the Middle East, Latin
America and Asia Pacific, Yeo says
Vallianz is also setting its sights on
penetrating the offshore marine market
in West Africa.
Return of a familiar faceJohn Giddens, who built Hallin Marine
into a global subsea services player
after starting it from a container in his
back garden, has reentered the industry
with the announcement this August of
the build of a 105 m subsea operations,
diving and ROV support vessel.
The contract for the construction
of the vessel, tentatively named Tasik
Toba, has been signed with Fujian Mawei
Shipyard in China. The vessel’s design
and specification has been carried
May
1 2 3 4 5 6 78 9
10
PSA finally wins concession to build and manage a terminal in MumbaiChemoil Energy delists
New exploration and production company, AziPac, sets up in Singapore
ASL Marine pays Miclyn Express Offshore $20m for Batam shipyard
M3 MARINE GROUPOne of Asia’s largest independent Offshore Shipbroking & Marine Consultancy groups.
1 Commonwealth Lane #06-21 ONE Commonwealth Singapore 149544 Tel: +65 63274606
www.m3marine.com.sgM3 Marine Offshore Brokers: [email protected]
M3 Marine Expertise: [email protected]
M3 Marine Offshore Brokers• Chartering (Time & Bareboat)• Sales & Purchase (including
Newbuildings)
M3 Marine Expertise• OCIMF OVID & IMCA CMID Inspections• IMCA Dive System Audits• FMEA Authoring & Auditing• DP Consultancy / Annual DP Trials• Pre-Purchase Survey Inspections• Technical & Commercial Due Diligence
• Market Research• Vessel Valuations• Project Analysis• Expert Witness
31www.seashipnews.com
out by Tasik Subsea, a company set
up by Giddens and long-time vessel
collaborator Mike Meade from broker
M3 Marine.
The Tasik Toba will be DP3 and
have a 300 m rated saturation diving
system, hangar facilities for two deep
water ROVs, a 150 tonne safe working
load active heave compensated crane
with 3,000 metre working depth, and
accommodation for 120 men.
Giddens sold Hallin to US-based
Superior Energy in 2010 for more
than £100m. Hallin has since just been
liquidated.
“I think commodity boats - PSVs and
AHTSs - are basically in oversupply,”
Giddens says, “but nevertheless people
that know what they are doing seem to
be making money in the right sub-
sectors.”
Fast developing Swire Pacific
Offshore (SPO) will celebrate having 100
ships by the end of next year.
Managing director Neil Glenn tells
SeaShip News how the fleet has changed
in recent years to reflect the new
demands of energy companies around
the world.
SPO’s offshore supply vessel fleet has
traditionally been very heavily weighted
towards AHTS vessels. However, with
the recent developments in the oil and
gas industry, such as the trend towards
deeper water exploration and the
increase in dynamically positioned rigs
and drillships, SPO has seen an increase
in demand for PSV vessels from its
clients.
“To ensure we are aligned with
industry developments and are able to
meet the needs of our existing clients,”
Glenn says, “we have rebalanced our
fleet mix to include a greater number of
PSVs.” The orderbook reflects this shift
with 14 PSVs and just three AHTSs to
deliver.
Another of the leading names in the
offshore support vessel sector sees
some overcapacity hitting certain parts
of the segment but is still bullish that oil
and gas developments will push rates up
in general.
Adam Clayton is the corporate
finance and group commercial head for
Miclyn Express Offshore (MEO) whose
current fleet stands at around 150 ships.
“We are seeing some oversupply
in certain segments such as mid-size
PSVs,” says Clayton, “but we also
believe that continued demand will
provide opportunities for growth for
the stronger service providers in the
market.”
Recently, MEO took over Uniwise
Towage, something Clayton describes as
a “natural extension” of the position the
company has built up in Thailand.
In terms of new areas for growth
MEO recently won eight long-term vessel
charters from an oil major in Brunei.
Singapore remains a good place in
which to raise capital. Robert Kuok-
controlled PACC Offshore Services
Holdings (POSH), the OSV giant with
around 120 vessels in operation,
launched its IPO on the Main Board
of the Singapore Exchange Securities
Trading Limited (SGX-ST) this April.
The company has plans to expand into
the deepwater offshore accommodation
sector.
Benefits of a downturnOSV veteran Amandeep Singh is
convinced the downturn has been
beneficial for quality owners, as it has by
default initiated the process of forcing
lots of old tonnage out of the market.
The managing director and ceo of
Offshore
11 12 13 14
May
15 16 17 18 1920
BW forms jv with investment manager PAG to buy 10 product tankers
Progressive Power pleads guilty over supplying bunkers without a valid bunker supplier licence
Inmarsat offers your ship a highly evolved maritime communications ecosystem which makes every trip or voyage more efficient, safer and more productive. In short, just a lot smarter. Visit inmarsat.com
SAFERSMARTERSHIPPING_
ENABLING TECHNOLOGIESThe iFUSION platform brings a revolution in enhanced commercial maritime fleet technology management. The new industry standard, this open architecture vessel technology suite reduces operational overheads and enables bespoke IT integration.
MANAGED SERVICEWith Inmarsat, you’re not just getting cutting-edge maritime connectivity and technology, you have the backing of a global team of highly skilled technicians with over 30 years maritime experience. They advise on end-to-end network agnostic solutions that help you optimise your maritime business.
OPTIMISED OPERATIONSInmarsat brings unrivalled high-reliability, premium quality global voice and data connectivity. This facilitates ultra-reliable ship-to-shore communications, linking shore side experts to your crew and seamlessly connecting your office with your fleet.
51. Inmarsat_Ad_Asia Maritime_W210xH297_SSSV51.indd 1 09/09/2014 09:15
33www.seashipnews.com
Marine Delivery (MDPL), a seven-year-
old Singapore offshore firm, notes that
many oil companies across the world
have now started to demand for quality
specifications and newer vessels as they
have the upper hand.
“This is helping in phasing out the
older tonnage,” Singh says, “and we can
already see a lot of owners who have
been holding on to them for long are
now gradually moving to scrap them.”
He reckons this will have a gradual
positive impact on the OSV markets.
Given this changed paradigm Singh
warns: “All owners will have to be
cautious on the specification and age of
their fleet for survival.”
Elsewhere, Nordic Maritime
continues to carve out a niche for
itself in Southeast Asia, eschewing
overtonnaged offshore sectors in favour
of more specialised areas.
Nordic Maritime is one of myriad
Scandinavian shipping companies that
call Singapore home.
Founded in 1999, Nordic Maritime
now operates a mix of owned and under
third party management seismic vessels,
survey/chase support vessels, a DP2
multipurpose supply vessel and two
new DP2 400-men accommodation/
construction vessels.
This October Nordic Maritime and its
partner PT Alamjaya Makmur Sejahtera
won a contract worth more than $2m to
provide 2D seismic marine acquisition
services with ocean bottom node (OBN)
technology to Mitra Energy Indonesia.
Indonesia is providing more and
more business to the company following
a recent opening of a Jakarta office.
Nordic now has three Indonesian
flagged ships and a fourth due in
February next year.
Kjell Gauksheim, Nordic Maritime’s
ceo, says the plan going forward is to
add to its subsea fleet with one to three
vessels per year.
Drilling priorities Dynamic Drilling Holdco is all set to
move beyond Indian waters as it expands
its fleet of jack-ups. Founded three
years ago, Dynamic Group has three
jack-ups and a drillship on charter to
India’s Oil and Natural Gas Corporation
(ONGC). On top of that, there’s a rig plus
three options on order at Cosco Dalian
Shipyard in northern China. The options
are likely to be declared soon, says
Manav Kumar, a director at Dynamic,
and all the orders may well go on charter
to parties beyond India.
Dynamic was founded, says Kumar,
because it was clear that oil companies
needed quality rigs and drilling services
with oil prices remaining comfortably
high. Its joint venture partners include
Singapore’s Keppel and Seacor from
the US. Management takes place out of
Singapore, where rigs are also flagged.
Dynamic is not alone in clocking
that perceived rig shortage and a vast
amount of orders have flooded the
sector, something Kumar acknowledges,
but without too much concern.
“A short term drop in rates is
likely next year,” he says, “as a lot of
newbuilds come onstream, but the long
term forecast remains good for serious
drilling contractors.”
Offshore
May
21 22 23 24 25 2726 28 29 3130
BW and Pavilion Energy form LNG ship jv
Inmarsat offers your ship a highly evolved maritime communications ecosystem which makes every trip or voyage more efficient, safer and more productive. In short, just a lot smarter. Visit inmarsat.com
SAFERSMARTERSHIPPING_
ENABLING TECHNOLOGIESThe iFUSION platform brings a revolution in enhanced commercial maritime fleet technology management. The new industry standard, this open architecture vessel technology suite reduces operational overheads and enables bespoke IT integration.
MANAGED SERVICEWith Inmarsat, you’re not just getting cutting-edge maritime connectivity and technology, you have the backing of a global team of highly skilled technicians with over 30 years maritime experience. They advise on end-to-end network agnostic solutions that help you optimise your maritime business.
OPTIMISED OPERATIONSInmarsat brings unrivalled high-reliability, premium quality global voice and data connectivity. This facilitates ultra-reliable ship-to-shore communications, linking shore side experts to your crew and seamlessly connecting your office with your fleet.
51. Inmarsat_Ad_Asia Maritime_W210xH297_SSSV51.indd 1 09/09/2014 09:15
www.damicoship.com
PROFESSIONAL SOLUTIONSFOR HEAT EXCHANGERS• Marine Air Coolers• Piping and Steelworks• Plate Heat Exchangers• Shell & tube Heat Exchangers
MALAYSIA LVI 36, Menara Citibank
165, Jalan AmpangKuala Lumpur
Tel: +60 321 696243
HONG KONG Level 19, Two International
Finance Centre, 8 Finance Street, Central,
Hong Kong
CHINA Bay Road, Shekou,
Nanshan District, No. 2Shenzhen,
China
Authorised Marine Service Agent for
AMS MARINE PTE LTD23 Link Road Singapore 619037
Office: +65 6264 8222 Fax: +65 6264 [email protected] | amsmarinegroup.com
AMS Ad.indd 1 26/2/14 11:44 pm
35www.seashipnews.com
New Entrants
The republic has welcomed many more maritime firms to its shores this year as SeaShip News details
Shipping central
Anyone who attended this
September’s record turnout at the
Singapore Shipping Association’s
annual dinner can attest to the fact that the
republic continues to draw more and more
maritime firms to its shores. A record
attendance of more than 2,000 included
many new faces. Our online poll, results
of which can be found on the back page,
lends credence to the growing feeling that
the city-state is now the leading, most
vibrant place for shipping on Earth. No
wonder, then, that so many companies are
rushing to set up shop here.
Part of Singapore’s success as a
maritime hub has been in attracting
the big name shippers to relocate here.
Snagging the likes of Cargill and BHP
Billiton from other hubs really kickstarted
the migration of owners and service
providers to the Lion Republic around
a decade ago. This shipper relocation
continued this year. US grain giant
Archer Daniels Midland relocated its
Asia headquarters from Shanghai to
Singapore as part of a significant Asian
restructuring.
Meanwhile, Gunvor, one of the world’s
largest independent commodity trading
companies, started iron ore trading
in Singapore as part of its strategy to
diversify in both what it deals and where it
operates.
Also of note, BG Group shifted its
centre of global liquefied natural gas
(LNG) and oil marketing business to
Singapore from its head office in the UK,
reflecting the long term importance of
Asian energy markets.
“Asia is the world’s largest market for
LNG and where BG Group already sends
the majority of its cargoes. By moving the
centre of our global LNG and oil marketing
business to Singapore, the heart of the
fastest growing LNG region, we are closer
to many more of our existing customers
and are better positioned to develop new
and deeper relationships in the region,”
said Steve Hill, president for global LNG
and oil marketing. BG already supplies
Singapore’s new gas terminal with some
3m tonnes a year.
Owners proliferateJaccar Holdings of Luxemburg and
Hartmann Group of Germany formed a
joint venture in the city this September
for the commercial management of ethane
carriers.
The new company, United Ethane
Carriers (UEC), will focus on the
marketing, branding and commercial
management of ethane carriers
internationally.
The first vessels under the new joint
venture will be five VLEC carriers with a
Our online poll lends credence to the growing
feeling that the city-state is now the leading,
most vibrant place for shipping on Earth
June
1 2 3 4 5 6 7 8 9 10 11 1213
14 15
Pavilion Energy inks LNG supply deal with Total
Archer Daniels Midland relocates Asia HQ to Singapore
Air-Conditioning & Refrigeration Solutions Marine & Offshore Systems
Authorised Distributor for
PRIMEair HVAC Pte Ltd15, Tuas Crescent, Singapore 638709Tel: +65 - 68611993 Fax: +65 - 68618377Email: [email protected] Website: www.primeairhvac.com
Certificate Number : 48899ISO 9001:2008
Grieg Star is a fully integrated shipping company. We operate one of the largest open hatch fleets in the world, in addition to a substantial bulk operation in the Handymax segment. We service major companies in fields like forest procucts, metals, bulk, energy- and project cargoes.
griegstar.com
37www.seashipnews.com
capacity of 85,000 cu m each. They are
going to be employed under a long-term
period charter with an undisclosed party.
Fast growing New York-listed Star Bulk
Carriers, the leading name in shipping’s
ongoing phase of consolidation, is
opening up a chartering office in the
Lion Republic, the company’s chairman,
Spyros Capralos, told SeaShip News in an
exclusive interview this September.
Crowley Maritime Corp from the US
has made a significant investment in
Singapore this year, opening a new project
management office in Singapore. The
office is located at 77 Robinson Road on
the 34th floor of the Robinson Building.
William Hill has relocated from
Crowley’s Anchorage office to Singapore
where he has assumed the position of
director, business development, and will
manage the project support office.
“We’ve seen an increase in customers
requiring service in the region and as
part of our commitment to consistently
evaluate and expand service offerings to
meet such needs, we have decided that a
physical location with local personnel in
Singapore was necessary,” said Hill. “It
will allow us to not only have in-person
management of our assets in the area,
but will also provide better, more timely
communication with our current and
potential customer base.”
In addition to the newly opened
solutions office in Singapore, Crowley
subsidiary Titan Salvage also maintains a
local presence with a 45,000 sq ft site west
of the city.
One man returning to the world of
shipowning made quite a stir this August
with a debut order.
John Giddens, who built Hallin Marine
into a global subsea services player after
starting it from a container in his back
garden, reentered the industry with the
announcement of the build of a 105
m subsea operations, diving and ROV
support vessel.
The irony of Giddens’ return was that
it coincided with news that Hallin Marine,
which he had sold for more than £100m
four years ago, was to close down.
Elsewhere, CSSC (Hong Kong) Shipping,
a shipowning unit of China’s shipbuilding
conglomerate China State Shipbuilding
Corporation (CSSC), set up an offshore
engineering subsidiary in Singapore to tap
into the international offshore market.
The new company, which is called
Rui Ling Offshore Engineering, has a
registered capital of S$10m. CSSC (Hong
Kong) Shipping holds 70% equity in the
subsidiary, with the remaining 30% owned
by Titan Oil in Singapore.
The company will focus on the building,
chartering, management, and operation
of offshore platforms and vessels. In
addition, Rui Ling will provide design,
technology and management support
for CSSC’s drive into the international
offshore market.
Offshore expertiseAziPac, a new exploration and production
company focused on exploring for oil
and gas in the maritime basins offshore
in the Asia Pacific region and the Bay of
Bengal, was established in May this year
in Singapore.
“The offshore Asia Pacific and Bay
of Bengal regions are experiencing a
resurgence in exploration for new oil and
gas reserves. This is driven by exciting
recent discoveries, new licencing rounds,
new company entrants and, importantly,
the potential for new technologies to
be brought to bear in new and mature
exploration areas,” commented David
Sturt, director of AziPac.
Singapore’s preeminence in offshore
has brought many specialist service
providers from around the world. Some
have cleverly chosen to club together.
Three companies this November released
a brand new concept to exploration
and production service providers. The
three companies are electrical system
integrater Alewijnse (which set up offices
in Singapore and Malaysia this year),
Part of Singapore’s success as a maritime
hub has been in attracting the big name
shippers to relocate here
June
15 16 17 18 19 20 21 22 23 24 25 2726 28 29 30
BW appoints Norden ceo Carsten Mortensen as its new group ceo
A DOT Marine accredited by MPA, first new bunker supplier for last 16 months
PSA Marine pulls out of buying Pacific Basin’s towage division
New Entrants
Oil & Gas and Marine Stockist for API, ANSI, ASME and JIS wide range of valves.
Kheng Cheong Co Pte Ltd2, Cavan Road Singapore 209843
Tel: (65) 6298-7222 Fax: (65) 6298-9591 Email: [email protected]: www.khengcheong.com.sg
Certificate Number : 43980ISO 9001:2008
- STANDARDSERVICE
- SOUR GAS(H2S)SERVICE
ANSI SAFETY RELIEFVALVE - UV STAMP
JIS SAFETY RELIEF &PRESSURE REDUCING VALVE
Selling your ship scraps?Leave it to us.
We acknowledge that maritime industry is your expertise. But when it comes to ship
scraps recycling, leave the hassles to us. We purchase scrap metals from vessels,
ships, anchor chains, winches, propellers, shipyards or oil rigs by offering:
Competitive priceHassle-free service
Transparent weighing & payment process
Headquarters Office33 Pioneer Road North Singapore 628474Tel: (65) 6861 9833 | Fax: (65) 6862 9833
Yards Location12/ 14 Gul Road s629344 | Tel: (65) 6265 9833 14 Defu Lane 11 s539170 | Tel: (65) 6382 0576
www.unionsteel.com.sg
Where Weight Really MattersOur scrap metal yard @ 14 Gul Road
Contact us today and quote MARITIMEfor a special quotation
A Member of Union Steel Holdings Limited
TRANSPARENCY
GUARANTEED
39www.seashipnews.com
quayside repairs and jacking systems OEM
ESI Willtech group and lubrication and
condition based maintenance Oliveira
Hydro, Marine & Shipping. The result is
Total Dock Fleet Support Services - a new
entity that seeks to deliver a complete
service solution from refit, repairs,
servicing and maintenance to life-time
extensions to the offshore industry
whereby companies can get quotes for
work from one entity rather than chasing
many different firms for prices.
Meanwhile, Deep Sea Mooring
(DSM), a supplier of mooring solutions
and services for the offshore industry,
launched a new, specialist business
dedicated to subsea installation solutions.
Deep Sea Installation (DSI), which will
initially focus on the FPSO segment,
opened in Singapore this May with 12
staff and an ambition to quickly establish
itself in the key regional markets of Asia,
West Africa and Europe.
“The FPSO market is growing fast, with
$99bn forecast to be spent on floating
production systems between 2014 and
2018,” said Åge Straume, ceo of Deep Sea
Mooring. “This is creating real demand for
installation expertise and DSM recognises
the potential for a business focused on
this niche.”
Wave of new service providersIn a very fast turnaround time a new
shipping agency, Wave Shipping, was
launched at the beginning of September
in Singapore with founder and ceo Lars
Rosenkrands noting what a fragmented
sector the agency business was and the
need for consolidation. Practicing what he
preached within a couple of weeks Wave
had been bought out by Norway’s EMS
Seven Seas with Rosenkrands taking over
as ceo of the whole group.
Elsewhere, Chromalox, a manufacturer
of electric heat and control products,
opened a new sales and operations office
in Singapore this July.
Herbert-ABS Software Solutions, a
company involved in marine regulatory,
load management, salvage and ship design
software, opened a Singapore offshoot in
January.
“Close proximity to shipowners and
operators, opportunities for salvage and
offshore projects and software sales
to other engineering companies, make
Singapore the natural choice for the
next phase of our expansion”, stated
Hendrik Bruhns, president of Herbert-ABS
Software Solutions.
Micaline, a subsidiary of Malaysia-
listed Shin Yang Shipping Corporation
(Syscorp), incorporated Bayshore
Shipping Services in Singapore this
November. Bayshore is engaged in
shipbroking services and as an agent for
providing commercial management and
marketing services.
At the end of October more than 100
executives from Singapore’s maritime and
offshore industry attended the launch
of Asia’s newest recruitment firm, Direct
Search Asia, set up by former Faststream
employee, Jason Tay.
With piracy in the region rising a
number of private security firms have
been looking to find the right people to
set up in Singapore. Jumping ahead of
many was Guardian Global Resources
who opened an office here in November.
Former soldier Alexander Leslie is
leading operations as managing director,
Southeast Asia.
“The narrow choke point upon
entering the Singapore Strait has become
a playground for a new breed of pirate,”
Guardian said in a release, noting how
criminal elements in the area have ramped
up their hijacking efforts, with assailants
targeting tankers laden with oil-related
products, which are then seized and sold
on the black market.
“Regional criminal networks are
growing more sophisticated, and are
led by extremely powerful leaders. As a
consequence it has become imperative
for the commercial shipping sector to
rely on established and adaptable security
providers,” Guardian maintained.
Bunkering musical chairsThe year 2014 will be best remembered
in bunkering terms for the very sudden
demise of OW Bunker, Denmark’s third
largest company by revenues. The $125m
hole in its bottomline from fraudulent
activity by Singapore subsidiary, Dynamic
Oil Trading triggered chaos. There were
a number of other bunker suppliers that
fell by the wayside in the republic too.
However, despite the tough times there
were new names that entered the fray to
the world’s largest bunkering hub.
In June, A DOT Marine was accredited
by the Maritime & Port Authority of
Singapore (MPA), becoming the first new
bunker supplier at the port in 16 months.
A month later, another new bunkering
firm, Unicore Fuel, started operations.
In related news, Canadian marine
surveying organisation Bunker
Detectives formed a subsidiary in
Singapore this year.
The FPSO market is growing fast, with $99bn
forecast to be spent on floating production systems between 2014
and 2018
July
1 2 3 5 6 7 8 9 10
New bunkering firm, Unicore Fuel, starts operationsPacific International Lines raises $241m from first ever bond issuance
Singapore Shipping Association unveils Michael Phoon as new executive director to replace Daniel Tan
4
New Entrants
41www.seashipnews.com
Shipmanagement
While managers increasingly are shifting much back office work elsewhere they’re still polishing their local shop windows
Lure of owners ropes managers in
It is a fact that shipmanagers are now
finding Singapore too expensive
to base all their operations there.
Back office operations are shifting
elsewhere, more often than not to
Manila, while sourcing the right talent,
such as superintendents, is getting ever
more difficult. However, the world’s top
managers continue to invest in the Lion
City, getting close to the country’s vast
shipowning base.
A relatively new Singapore-based
shipmanager is well on the way to
looking after more than 50 vessels as well
as carving itself a considerable niche in
managing VLCCs.
Capt AR Sabnis is the managing
director of Goodwood Ship Management,
a company whose current fleet under full
technical management stands at 32, but
should be passing the 50 mark by mid-
2016, he says, by which time it will have
more than 10m dwt on its books.
Another comparatively new name
in the local sector is one-year-old
Masterbulk Ship Management (MBSM),
part of shipowner Masterbulk.
Based in Singapore, MBSM has
focused on the dry bulk sector to begin
with and is now managing a fleet of more
than 20 ships. Opportunities with both
shipowners and financial institutions
who have taken possession of distressed
assets are also being explored.
Meanwhile, Höegh Autoliners and
Hong Kong’s Wallem Ship Management,
which already manages nine Höegh
vessels, intend to expand their
cooperation and the parties are in
dialogue to establish a joint venture
company in Singapore. The company will
handle the technical management of all
Höegh Autoliners’ owned vessels.
There are 28 owned vessels operated
by Höegh Autoliners which are today
technically managed by Höegh Fleet
Services. In the future these will be
managed by the joint venture company,
with all vessels transferred by the end of
June 2015.
SeaShip News understands another
well-known name in Hong Kong’s
shipmanagement circles is readying
a big expansion in Singapore. Univan
Ship Management is expected to make
an announcement soon on a new office
set up in the republic. The company’s
ceo, Bjorn Hojgaard, is well known in
Singapore having headed up Thome Ship
Management for a number of years.
Hojgaard’s successor at Thome
since 2010, Carsten Brix Ostenfeldt,
has recently been poached by Nordic
Tankers, one of the world’s largest
operators of small- and medium-sized
chemical tankers.
Earlier this year, Thome opened a
crew recruitment and placement services
agency in Myanmar with the company’s
chairman, Olav Eek Thorstensen,
noting: “Establishing a strong manning
operation in Myanmar underlines the
Thome Group’s commitment to this fast-
moving and highly important seafarer
recruitment market.”
The world’s largest shipmanager,
V.Group, continues to make its presence
felt in Singapore. This September it
concluded the acquisition of Core-
IRM, a Singapore-based offshore IRM
(inspection, repairs and maintenance)
services provider.
Moreover, a well known name in
the local shipmanagement arena made
a comeback this year. Manish Singh,
chairman of consultants Ideocean as well
as the Cambridge Academy of Transport
announced this September his return to
V.Group as group director for strategy
and M&A, leading many to speculate that
there will be a raft of Asian acquisitions
by V.Group soon.
“In seeking potential partners, V.Group
looks for businesses with experienced
and committed management teams that
add expertise and a track record in
technical, operational and commercial
performance assurance,” Singh tells
SeaShip News.
The opportunities being considered,
he reveals, range from broad based
international service providers to niche
service companies with specific skill sets.
V.Group’s president and group
ceo, Clive Richardson, confirms that
expansion in Asia is a top priority in the
coming years.
“From the point of view of revenue
growth in a particular geography, our
biggest opportunity would be through
our Asian office network,” he reveals.
July
11 12 13 14 15 16 17 18
19
20Standard Chartered sues India’s Varun Shipping’s Yudhishthir Khatau
for $5.2m over a loan default in Singapore
DNV Petroleum Services rebrands as Veritas Petroleum Services
42 www.seashipnews.com
Crewing
July
21 22 23 24 25 26 27 28 29 30
31
Maritime Heritage Fund launchedSwissco buys rig operator Scott and English Energy
Sinwa creates barge JVEzion sells two subsidiaries to AusGroup for S$55m
Four-year dredging project starts for new Tuas megaport
Crowley Maritime opens local office
Singaporean authorities are worried about where the next generation of seafarers will come from. Have they forgotten about 50% of the population?
The female factor
Despite numerous initiatives from
local authorities to foster the next
generation of seafarers, it’s a fact
Singapore is struggling to find enough
people interested in a career at sea.
Speaking at the inaugural Danish
Maritime Forum in October, Lui Tuck
Yew, Singapore’s minister of transport,
warned that getting the next generation
of seafarers was a “global challenge”,
something he thinks will be very difficult,
leading to the possibility of more
automated vessels. “Will robots work
alongside the crew to relieve some of the
work and stress?” he mused, adding: “I
think it is important we must discuss this.”
59% of respondents to our poll on
Singapore (full results carried on page 60)
feel the government’s efforts to get people
interested in maritime careers have been
ineffective thus far. However, perhaps the
government has missed a trick. Why not
get more women involved in shipping?
According to UK maritime HR firm
Spinnaker Consulting, women are 52
times less likely to join the maritime
industry than men.
The outcome of a number of
surveys by the Women’s International
Shipping & Trading Association (WISTA),
International Transport Federation and
the International Labour Organisation
prior to the World Maritime University
Female Global Leadership Conference
found that women make up just 1 to 2%
of the world’s 1.25m seafarers. Moreover,
94% of women working at sea are working
on passenger ships.
“In no other profession would it be
acceptable to have the current male-
female ratio,” says Nicholas Fisher, ceo of
Singapore’s Masterbulk.
Excuses about officer shortages
should not wash when this industry has
consistently failed to employ half the
available workforce.
In late 2014, Masterbulk hired its first
two Singaporean female cadets, Nurul
Sahira Binte Sha’ri and Era Yuhanis Binte
Abdul Ghani.
“More talks should be given in schools
to create awareness about the good
prospects in the maritime industry,”
says Sahira, who also calls for the
establishment of a local female seafaring
organisation to make it easier for future
female cadets.
“All is not lost for shipping in
Singapore,” Fisher argues, insisting:
“There are youngsters out there who
don’t want to be bankers. They don’t
want to just sit in an office. They want to
get their hands dirty and to be involved
in one of Singapore’s most important
industries.”
43www.seashipnews.com
Recruitment
Attracting young people to a career in maritime is proving difficult
Different career paths
SeaShip News contends that the
single greatest impediment to
Singapore’s future as a world
leading international maritime centre
(IMC) is not in its hardware, but more on
the soft side of things. The government
has already made plans for the next
generation operations of the port and
the republic’s shipyards, with a big
shift out west to Tuas. However, what’s
proving more tricky is ensuring there
are enough competitively priced people
engaged in the industry. And it is not
just us who think that this is the crucial
speed bump in the Lion Republic’s
IMC intentions, you, the reader, seem
to concur judging by the results of our
online poll on Singapore maritime,
results of which are carried on page 60.
Increasingly, most people under
the age of 30 are not interested in a
maritime career, the nation’s youth
suffering from a collective ‘Goldman
Sachs syndrome’, meaning they all want
to work for investment banks and earn
vast salaries.
In the past year nearly 10
shipmanagement companies have left
Singapore, either moving back to their
shipowning home countries entirely
or leaving a mere one-man ‘listening
post’. “It’s just way too expensive for
shipmanagement,” one executive with
access to many top local managers
moans to SeaShip News.
The government is aware of this
coming human resources crunch, the
chief executive of the Maritime and
Port Authority of Singapore (MPA),
Andrew Tan, commenting at this year’s
Singapore Maritime Week, “Singapore
has to remain relevant, by making sure
that we have sufficient capabilities and
people joining the sector, which is why
we are very keen to attracting younger
people to join the industry.”
Experienced staff in high demandSupply of experienced dry cargo
operations staff in Singapore is drying
up fast. Competition for operators in
Singapore with more than five years’
experience is intense.
With numerous owner operators
all fishing in the same pool, each
is finding it tough to fill vacancies.
Maritime recruitment firm Spinnaker’s
Matt Cornelius, who specialises in
commercial shipping recruitment in
Singapore, says, “There are enough
vacancies for each candidate five times
over at the moment.
“There are now so many employers
on the island that poaching is rife and
competition for staff is never ending,”
says Cornelius. “Combined with the
industry-wide lack of investment in
new talent during the first half of
the recession, there are not enough
operations, chartering or freight trading
staff with five years’ experience to go
round.”
New immigration rulesFurther complicating matters, this
August saw the introduction of the
Fair Consideration Framework in
Singapore. This is intended to ensure
that employers give local people the
opportunity to apply for vacancies; and
it means that all Singapore vacancies
must be advertised on approved
websites for at least 14 days before
visa/employment pass applications for
August
1 2 3 5 6 7 8 9 10
Hallin Marine founder John Giddens returns to OSVs with new firm, Tasik Subsea, created with M3 Marine’s Mike Meade
4
Actions speak louder than words.
Faststream Recruitment GroupTel: (+65) 653 - 27 - 201 www.faststream.com
CEOShip Owner, Singapore
FLEET MANAGERShip Manager, Hong Kong
MANAGING DIRECTORShip Owner, Singapore
GENERAL MANAGERSalvage, Singapore
CHARTERING MANAGERShip Owner, Singapore
OPERATIONS MANAGERShip Owner, Singapore
HEAD OF SHIPPINGCommodities, Singapore
OWNERS REPShip Manager, Indonesia
DRY DOCKING MANAGERShip Owner, Singapore
CHARTERERShip Owner, Korea
BD DIRECTORShip Manager, Singapore
CFOShip Manager, Hong Kong
TECH SUPERINTENDENTBulk Ship Owner, Singapore
HR DIRECTORShip Owner, Hong Kong
GENERAL MANAGERDry Bulk, China
45www.seashipnews.com
foreign workers can be considered.
Singapore has possibly become a
victim of its own success, Cornelius
reckons. “Its size and dependence upon
foreign labour, high housing costs, cost
of living and the incredible growth of the
shipping community means that it’s hard
enough for employers to fill some of
their roles, let alone fill them with local
staff,” maintains Cornelius.
“2014 has seen a rising concern from
employers in Singapore with regards to
the increasing cost of employing people
and increasing scrutiny and restrictions
on hiring foreign talent, contributing to
a further constriction of an already tight
maritime talent pool,” says Matt Conway,
managing director of Faststream
Recruitment in Singapore.
Nevertheless, the ceo of Faststream,
Mark Charman, tells SeaShip News
that Singapore has been “super busy”
in hiring mode this year. However, the
Faststream boss hears more and more
that companies are finding employment
costs in Singapore prohibitive but he is
not seeing a decrease in hiring.
Jason Tay, a former Faststream
employee, set up on his own this year,
creating Direct Search Asia with offices
in Singapore and the UK. He has some
astonishing statistics on the difficulties
facing maritime employers in Singapore.
Based on today’s industry standard,
employees staying in the shipping
and the maritime sector have slipped
from 2.5 years average to less than
two years, which means people stay
in their jobs for a shorter period and
move around more. Approximately 80%
of the movement comes from the local
workforce highlighting, Tay says, the
demand for employees but at the same
time the shortage of talents in the sector
“With Singapore moving into a
more service-oriented industry, and
the media’s consistent promotion of
more glamorous jobs where money
comes easily and living is good,
certain skillsets and experience within
the shipping industry become less
common among the local workforce,”
he admits. For instance, many shore
jobs require prior sea experience such
as technical superintendents, marine
superintendents and surveyors, which
necessitates hiring foreign talents.
The setback to hiring an expatriate
is always about the additional costs
incurred on overseas allowances, which
usually includes schooling, housing and
transport. Salaries aside, more expensive
office space and increasing wages mean
higher operating costs for employers,
resulting in constrained hiring budgets.
The issue of employment is made more
challenging with the tightening of the
local immigration policy.
“So,” says Tay, “it really depends on
the individual’s reason for working in
Singapore, and how much skillset is
required for the potential employer to
stretch their hiring budget.” Usually,
he says, it is a situation where both
employer and employee each tend to
come to an agreement.
Offshore off elsewhereWhile employment for shipping remains
predominantly localised - except for
senior positions, movements are more
active among the marine and offshore
community. This has a lot to do with the
region’s newbuilding scene for offshore
support, drilling and production
facilities rather than merchant vessels.
In Singapore, the orderbook for
jack-up rigs and OSVs seemed endless
as they fell on the lap of local yards
for many years, elevating the city’s
dominance by capturing more than
70% of the world’s new construction
for offshore drilling rigs. In recent
years, Chinese builders have scaled
up their engineering capabilities and
taken over Singapore as the world’s
largest builder of jack-up rigs, causing
the Lion City builders to be sandwiched
between the cost competitive Chinese
and Vietnamese yards, and higher end
Korean yards. Such market sentiment
is believed to have triggered the
movement of many engineers and
project management teams to move out
of Singapore.
Recruitment
August
11 12 13 14 15 16 17 18 1920
FSL Trust celebrates first quarterly profit in three years
Marco Polo Marine and Malaysian shipbuilder Nam Cheong form OSV owning jv
NOL admits to Singapore Exchange it is looking at selling APL LogisticsEzra shareholders approve merger of subsidiaries EMAS Marine and EOC
We introduced the first commercial bunker fuel testing programme for ships in 1981. Today, customers remain at the heart of our business. We operate a global network of technical experts and offices, four specialist and wholly-owned fuel testing laboratories strategically located in Rotterdam, Singapore, Houston and Fujairah, with access to 200 key bunkering ports worldwide for bunker quantity surveys. We are committed to providing services with absolute integrity and professionalism.
Veritas Petroleum Services (VPS), the leader in maritime testing and surveys, delivers solutions that help ship operators achieve measurable improvements to fuel management, fuel cost, operational efficiency and compliance with marine fuel regulatory requirements.
The Leader in Maritime Testing & Surveys
AmericasHouston318 North 16th StreetLa Porte, Texas 77571USAT + 1 281 470 1030E [email protected]
EuropeRotterdamZwolseweg 12994 LB BarendrechtThe NetherlandsT + 31 10 292 2600E [email protected]
Asia, Middle East & AfricaSingapore27 Changi South Street 1Singapore 486071T + 65 6779 2475E [email protected]
www.v-p-s.com
Veritas Petroleum Services Group
47www.seashipnews.com
Bunkering
The Lion Republic is not resting on its laurels
Innovate to stay ahead
Singapore may well be the world’s
leading bunkering hub, but that
does not mean operating there is
easy. Far from it. In fact, there is nowhere
more ferociously competitive than
the Lion Republic hence the ongoing
contraction in the number of bunker
suppliers. In the past two years some
22% of the bunkering field have either
folded or had their licences cancelled
by the Maritime & Port Authority of
Singapore (MPA). As we went to print
there were 62 suppliers left.
This year’s bunker sales have been
rather flat. In the first eight months sales
for all products stood at 28.18m tons,
just 60,200 tons more than in the same
period in 2013.
More worrying for the bunker
sellers – though not for hard-pressed
shipowners – are falling prices. As
we went to print the outright price of
Singapore 380 CST ex-wharf bunker
fuel fell to its lowest in more than 44
months hitting $553 per ton.
Competition is also felt increasingly
by the republic’s mandarins with
neighbouring ports in Malaysia and
Indonesia making much noise of late
about establishing credible bunkering
rivals to Singapore. Competition,
however, breeds innovation – and it is
here that the Southeast Asian nation
leads the pack, whether it be via its mass
flow meter introduction or preparing for
an LNG fuel future.
“What stands out in the Singapore
bunker scene in 2014 is the positive
effort put in by the port authority team
to improve bunkering standards,” says
August
21 22 23 24 25 26 27 28 29 30 31
Jurong Port appoints Ooi Boon Hoe as ceo
Aztech buys Glenn Marine Logistics Base for S$11m
THE REPUBLIC’S
MINISTER
for transport
promised to up the
nation’s bunkering
credentials at this
year’s Sibcon
bunkering gathering. Lui Tuck Yew
announced that two of the country’s
bunkering codes - SS600 and
SS524 - have been revised effective
this November. As of January 2017,
all surveyor companies need to be
licensed. Previously just the actual
surveyor had to be, and companies
only needed to be accredited.
On mass flow meters, which
Singapore introduces at the end of
this year, the minister said that the
meters were currently in use on 5%
of the city-state’s bunkering fleet,
the aim was to get that figure up to
50% by the end of next year.
Singapore is also leading the
way in the introduction of LNG
bunkering. A pilot program is being
established to develop operational
protocols for LNG bunkering,
the minister revealed with grants
available for testing at $2m per
vessel up to a maximum of six
vessels per company.
Singapore is also looking closely
at the use of electronic bunker
delivery notes, conference delegates
were told.
Minister vows to boost bunker systems
SingaporeA Major Bunkering Hub
Searights Maritime Services Pte LtdCertificate of Accreditation: MPA/AS 04 00180 Marine Parade Road#16-05/06/07/08 Parkway ParadeSingapore 449269
Tel: +65 6344 1108 Fax: +65 6344 1128email: [email protected]
Singapore Bunkering Report (ASM) 2014.indd 1 9/29/2014 3:02:18 PM
49www.seashipnews.com
SingaporeA Major Bunkering Hub
Searights Maritime Services Pte LtdCertificate of Accreditation: MPA/AS 04 00180 Marine Parade Road#16-05/06/07/08 Parkway ParadeSingapore 449269
Tel: +65 6344 1108 Fax: +65 6344 1128email: [email protected]
Singapore Bunkering Report (ASM) 2014.indd 1 9/29/2014 3:02:18 PM
Rahul Choudhuri, coo, Asia, Middle
East and Africa for Veritas Petroleum
Services.
“Improving the Singapore Standard
Code of Practice for Bunkering by
bunker barges/tankers or SS600,
implementing mass flow meters, making
it clear to all bunker industry players,
whether surveyor, supplier or ship, that
corrupt practice will not be tolerated,
these are all signals that Singapore takes
its bunker business seriously and will
continue to exercise leadership in this
respect,” Choudhuri reckons.
Says another local bunker trader,
“One of the key challenges for
Singapore, as for all bunker markets,
is to remain competitive in the face
of competition from other bunker
ports and to continue to supply the
high quality products that shipping
companies need. Singapore is not
immune to this challenge, despite the
benefits of its location and the strength
of the bunkering infrastructure in place
here, and understands that it doesn’t
have a divine right being the biggest
bunker port in the world.”
Lim Teck Cheng, the ceo of
Singapore’s largest bunker vessel
operator, Hong Lam Marine, argues
that one consequence of this quest for
innovation is a natural further culling
of the number of companies within his
sector.
“When mass flow meters come in
a lot of smaller players will find it
difficult,” says Lim, who anticipates the
playing field being cut by another 10%
making the sector more sustainable in
the long run.
There are too many bunker tankers
in Singapore now, admits Lim. Mass
flow meters can supply 15 to 20% more
than before, he points out, which in turn
means there will be no need for 15 to
20% of today’s bunker tankers. However,
there are a still a number of single hull
tankers plying Singapore waters so
eventually everything should balance
out, Lim maintains.
THE SPEED AND nature of the demise
of OW Bunker had overtones of Nick
Leeson and Barings Bank’s dramatic
bankruptcy nearly 20 years prior also
in Singapore.
So the story goes, the head of a
Singapore subsidiary turns up at
the Copenhagen headquarters of
the world’s largest bunker supplier
fearing arrest in the Lion Republic
for fraudulent actions carried out
by a couple of employees that, it
emerges, resulted in a dramatic
$125m hole in the firm’s accounts.
Within a couple of days OW Bunker,
Denmark’s third largest company
by revenue, declares bankruptcy
sending shockwaves around the
world, especially in Singapore, where
despite the authorities best efforts to
try and maintain calm, disruptions in
the bunker supply chain were evident,
leading to a spike in bunkering sales
in other Asian ports.
The real people to gain from
OW Bunker’s demise have been
lawyers with claims against it and its
subsidiary running into the millions
and once again Singapore being at the
centre of many legal wranglings.
The actions of its Singapore
subsidiary that spurred its downfall
were unknown to the board of OW
Bunker, its chairman has said.
Chairman Niels Henrik Jensen said the
board had been “extremely surprised”
by the $150m trading loss at its
subsidiary Dynamic Oil Trading and
that the board had never approved
a credit line in the region of $125m
from Dynamic to Tankoil Marine
Services.
Bunkering
OW Bunker’s demise
September
1 2 3 4 5 6 7 8 9 10
MPA cancels Northwest Resources’s bunker licence
V.Group acquires Singapore’s Core-IRM, an offshore inspection, repairs and maintenance services providerNew shipping agency, Wave Shipping, launches in Singapore
New York-listed DHT Holdings buys out local firm Samco Shipholding for $317mEzra subsidiary EOC
launches Singapore IPO Keppel takes 10% stake in Golar Hilli, the world’s first FLNG vessel conversion project
Singapore Bunker Sales
0
10000
20000
30000
40000
50000
201320122011201020092008200720062005
Metric Tons
Need daily news from Southeast Asia?
The only maritime and o�shore news site dedicated to Southeast Asiawww.seashipnews.com
@SeaShipNews
51www.seashipnews.com
SINGAPORE’S POLICE COAST Guard
(PCG) says it will continue to actively
tackle illegal bunker trading.
A spokesman for the Singapore
Police Force says it had arrested 58
people, six vessels, and taken 17,363 in
cash since 2013.
“The Coast Guard will continue to
conduct enforcement operations and
checks, as well as engage relevant
stakeholders to clamp down on the
illegal sales of MGO [marine gas oil],”
said the spokesman.
Tugboats continue to be modified
in order to carry greater quantities of
fuel oil than they would ordinarily and
then used as transporters for the illegal
bunkers.
“These tugboats are a fire hazard
and pose a danger to other vessels in
the area,” added the police spokesman.
The PCG has said that in the first
seven months of 2014 compared to all
of last year there had been a tenfold
increase in illegal fuel trade volume so
far in 2014. Those found guilty of theft
of bunker oil face seven years in jail
and a fine. Those who buy the stolen oil
could be jailed for five years and fined.
THE NATIONAL METROLOGY Centre
and Mogas Flow Lab (MFL) signed a
research collaboration agreement in
April this year to provide scientific
metrology expertise and consultancy
for the establishment of a primary
liquid flow standard, construction
of a heavy hydrocarbon calibration
rig (HHCR), and a R&D lab in flow
measurements for bunkers. MFL is
investing approximately S$20m for
the building of the R&D lab, HHCR and
associated facilities.
The lab will be the first of its kind
to use actual bunker fuel as the flow
medium. When completed, the facility
will give the local maritime industry
a head start in allowing locally-
calibrated bunker mass flow meters
(MFM) to have a direct traceability to
the standard mass.
On the collaboration, Dr Thomas
Liew, NMC’s executive director, says:
“This assures business partners -
owners and buyers - of quantity
standards, promotes fair trade, and
also enables local suppliers to attain
industry standards and related
accreditation/certification, enabling
them to access the global market.”
NMC and Mogas are currently
in discussion and assessing sites
appropriate for the facility. Expected
to occupy 5,000 sq m, the facility is
targeted to commence construction in
early 2015.
Other initiatives by NMC for the
bunker industry include providing
metrology expertise to verify the data
of MPA’s acceptance tests as well as
the establishment of a new liquid flow
lab with the capability to measure
the mass flow rates of water-based
synthetic fluids, using the gravimetric
method, down to a measurement
uncertainty of 0.05%.
Investment in local research
Coast Guard clamp down
Bunkering
September
11 12 13 14 15 16 17 18
1920
Sembcorp Marine acquires Houston’s SSP Offshore
Ship chandler EMS Seven Seas buys out ship agent Wave ShippingJaccar and Hartmann form ethane carrier jv in Singapore
Bunker supplier Centra Oil folds
52 www.seashipnews.com
Piracy off Singaporean waters has intensified dramatically this year. Solutions are at hand
Piracy
How to beat the pirates
Piracy around the Malacca Straits is
very much back in the news, with
the United Nations saying the region
has now surpassed West and East Africa
to become the global hotspot for piracy.
In particular, small product tankers have
been targeted by robbers throughout the
year. In the final week of June alone there
were five reported incidents.
Piracy in Southeast Asia is nothing
new. What is new, however, is the jump in
numbers and the very specific targeting of
certain types of ships.
This spike in hijacking and cargo
theft has been brought about by the
black market demand for marine fuel oil
in Southeast Asia, says Steve McKenzie,
a senior analyst at the UK firm, Dryad
Maritime. There have been crimes similar
to these for many years, the majority of
which were from bunker barges and small
tankers with only small amounts of fuel
being stolen. A large number of these
incidents went unreported, however, over
the last three or four years reporting
of these incidents has increased as the
criminals have targeted larger vessels.
The common denominator for all of these
hijackings and cargo theft incidents this
year has been Singapore. All the vessels
that have been targeted had prior to being
boarded called at Singapore, McKenzie
notes.
“The stealing of oil products in the
region is targeted product theft, which
results in the stolen cargo being sold on
the black market,” says Gerry Northwood,
the coo of security firm, GoAGT.
Recent successful hijacks of tankers
whilst underway, coupled with a rise
in the average number of pirates
involved in a single attack may suggest
a partial evolution in the typical trends
of the industry, notes Harry Pearce, an
intelligence analyst at Ambrey Risk
“We assess that these crimes will
continue unabated until the black market
in marine fuel oil is curtailed and the crime
syndicates who are controlling the gangs
who carry out the crimes are dealt with,”
the Dryad analyst reckons.
While the greatest concentration
of incidents undoubtedly lies adjacent
to Indonesia’s often marginalised
communities in the Riau Archipelago, they
are shaped by their proximity to Malaysia
and Singapore and aided by long-standing
boundary disputes.
Indonesia’s new government is focused
on economic nationalism and delivering
energy self-sufficiency. A concentration
of piracy in the Makassar Straits may
threaten investor confidence in upstream
developments across Kalimantan where
reserves are falling and the unrealised
deepwater potential of local concessions is
increasingly important.
To build domestic savings and finance
energy initiatives, the new Indonesian
government may be required to curb long-
standing subsidies on fuel products, which
is likely to put pressure on more remote
regions, already dissatisfied by a decade of
widening income inequality.
“Without a viable alternative provided
to those seeking redress for an expanding
social divide and continued inflation
in Indonesia, many agitators will be
compelled to target commercial assets with
September
21 22 23 2425 26
27 28 29 30
Vallianz acquires shipyard in Batam
Pavilion signs 20-year deal for BP gas Singapore Shipping Association annual dinner attracts record crowd of 2,400
CSSC (Hong Kong) Shipping, part of China State Shipbuilding Corporation, sets up offshore engineering subsidiary in Singapore
Vallianz to buy crew specialist OER for $27.7m
53www.seashipnews.com
relative ease,” says Pearce from Ambrey
Risk.
The piracy model currently used in
Southeast Asia is very similar to that used
by Nigerian gangs, who in recent years
have been hijacking large product tankers
across West Africa and then stealing fuel
oil. These crimes are intelligence led and
well-coordinated. In Southeast Asia the
vessels targeted have tended to be local
small product tankers and not the large
ocean going vessels hijacked in the Gulf of
Guinea. In recent months, however, as the
number of attacks has increased, so too
has the breadth of ship types – car carriers,
containerships and LPG vessels have all
been victims in the past few months.
Solving the scourgeSo then, what’s the way to deal with this scourge?
GoAGT’s Northwood admits that finding
a way to solve to the maritime criminality
and piracy problem in Southeast Asia is
not going to be straightforward.
“Most of the incidents are occurring
inside territorial waters, which makes
the legal use of weapons as a means of
deterrent very difficult to achieve without
the enlistment of government military or
navy,” he explains.
The primary solution is to end the black
market for the stolen cargo, says Dryad’s
McKenzie. The syndicate that is controlling
the gangs must have good connections
within the fuel business in Singapore, he
reckons. If these links were broken it would
be more difficult to target specific vessels.
Shipowners and Masters need to
introduce stricter policies on shipping
movements and cargo details. It is possible
that some crewmembers are in collusion
with crime syndicates, McKenzie thinks.
Kevin Doherty, who heads up Nexus
Consuting, observes that stealing oil
cargo from a ship is a very complicated
operation. It requires both deck and engine
officers to be involved in the ship-to-ship
(STS) operation.
“The focus area for the recent Asia
piracy acts should be on those who have
the skills and training for STS and those
who have the connections to move the
diverted cargo on the black market,” he
suggests.
It’s also important to note that this
model seems to be very cyclic. Some 10 to
15 years ago the region was awash with the
same pirate model.
“This lends to the possibility a recently
released criminal may be involved as well,”
Doherty muses.
Scott Bernat, an American maritime
security expert, says affected countries
must work together. Especially important is
the reporting and sharing of information,
such as that which is being accomplished
through the International Maritime
Bureau’s Piracy Reporting Centre and the
Singapore-based ReCAAP Information
Sharing Centre. Response to reported
incidents must be planned, trained for
and coordinated among all responsible
parties. Criminals must also be prosecuted
to the fullest extent of the applicable legal
jurisdiction and law, utilising a process
protectant of human rights and transparent
to all.
“This teamwork and deference to the
rule of law will highlight the region’s
commitment to countering piracy and send
a clear message to those involved that it
will not be tolerated in any form,” Bernat
says.
The shipmanager’s viewpointFinally, Vijay Soman, director of safety and
insurance at Wallem Ship Management, has
this piece of advice for product tankers
transiting the region.
“The focus of attacks in Southeast Asia
has been product carriers so we have
advised all Wallem product carriers in
the region to take defensive measures in
line with BMP4 standards, which includes
rigging razor wire, additional look outs
and regular testing of communications
equipment,” he says. Vessels which are
asked to anchor at OPL anchorages may
also be vulnerable, Soman warns, and
may be asked to take such precautions on
a case by case basis, including avoiding
remaining at anchor and instead drifting
well away from land.
Every part of the maritime supply chain
can do its bit to help defeat piracy in the
region – now is the time to act.
Piracy
IN A BID to counter rising regional
maritime piracy as well as try to keep
track of air traffic in the wake of the
MH370 disaster, Singapore’s Ministry
of Defence has announced plans to
launch a radar-equipped blimp above
the city.
A giant unmanned helium-filled
balloon will be held down by fortified
ropes to float 600 m above ground.
The so-called aerostat will be similar
to the ones seen at golf tournaments,
which help viewers track balls in the
air, Defence Minister Ng Eng Hen said
in a statement. The radar, operating
24 hours a day, will be capable of
monitoring as far as 200 km.
View from on high
October
1 2 3 4 5 6 7 8 910
EMAS Offshore lists on Singapore ExchangeGAC Marine Logistics relocates HQ to Singapore
Hallin Marine shut down
www.singtelofficeatsea.com fb.com/crewxchange
For More Information, contactGlobal Support Centre (24 hrs)Tel: 1800 788 0022 (Singapore) +65 6788 0022 (International)Email: [email protected] Main website: www.singtelofficeatsea.comCorporate website: www.singtel.com/satelliteSeafarer portal: crew.singtel.com
Exclusively by SingTel Satellite
*For mobile to fixed and mobile to cellular calls only. Promotion ends 31 December 2014. Only for 2GB, 6GB or unlimited FleetBroadband plan. Calling cards to fixed and cellular lines only. Shelf life of calling cards is 1 year from issue or expires 12 months after first use. New plans and plan upgrade only.
Copyright © 2014 Singapore Telecommunications Limited (CRN: 199201624D). All rights reserved.
fb.com/crewxchange
Technical Assistance Centre (24hrs)
Now you can enjoy superior connectivity and savings with SingTel Satellite:
Choice of 2GB, 6GB or unlimited FleetBroadband plan
FREE 100min voice calls every month *
FREE Intouch prepaid calling cards, for up to 200 minutes
FREE email for business use onboard
Option to purchase Sailor, Intellian, JRC and Furuno antennas with up to 25% savings
55www.seashipnews.com
October
11 12 13 14 15 16 17 18 19 20
A $54m research centre launches aimed at tackling urban crowds and port management
CJ Korea Express tells Seoul stock exchange it’s looking at buying APL Logistics
MOL forms shipmanagement jv in Singapore with Chennai-based Synergy
Technology
Singapore is blessed with many
technical tertiary education
establishments who continue to
contribute to the growing efficiency
of the city’s maritime infrastructure,
some of which are detailed on our
ports coverage on page 13. Singapore’s
Maritime and Port Authority signs
up with many overseas organisations
to tap knowledge, such as US class
society, ABS, who this July signed
a memorandum of understanding
to promote maritime research and
development and innovation. Speaking
at the signing MPA chief executive
Andrew Tan talked about developing
Singapore into a “global maritime
knowledge hub”.
The nation’s tech firms are helping
develop this cutting edge too.
Lim Kian Soon, who heads up the
satellite business group at Singapore
Telecommunications (SingTel) tells
SeaShip News, “Shipowners are now
looking at ways to improve in the areas
of operational efficiency, monitoring
and controlling and crew welfare, so that
they can stay afloat during these rough
times for the maritime industry.”
New products introduced by SingTel
to the maritime industry include mobile
video surveillance, an integrated
platform for data, mail, voice calls, web
chats and surfing, and CrewXchange@
SingTel - a lightweight portal for crew
to connect with their loved ones while
at sea. On top of that there’s a secure
ECDIS now on the market as well as a
mobile app whereby seafarers can now
receive incoming calls on their pre-paid
mobile SIM card, which was not possible
previously as they could only make
outgoing calls on their pre-paid mobile
SIM card.
“These solutions,” Lim says, “were
designed to suit shipping companies’
needs to maximise operational
efficiency, control and improve crew
welfare.”
Bunkering changesThe clock is counting down the hours
to another very significant change in
the bunkering sector. Come the end
of this year, Singapore, the world’s
largest bunkering hub, will kick off a
mandatory introduction of mass flow
meters in a bid to make bunkering more
transparent.
Enforcement dates for the new system
to be fitted will apply to all new bunker
tankers applying for a bunker tanker
licence by the end of this year and for
all existing bunker tankers by the end of
2016.
The ruling is very good news for one
local tech firm, Ascenz, founded by Chia
Yoong Hui ,who has been pioneering
fuel monitoring devices for the past six
years.
A controller, accessibly remotely,
created by Ascenz that tracks bunker
usage and sales, is now on more than
180 ships
“The new regulations in Singapore
present an opportunity for Ascenz, as
we have been installing and supporting
mass flow meters for the past six
years and our controller provides
transparency and efficiency for users,”
says Chia.
Meanwhile, Singapore’s National
Metrology Centre and Mogas Flow Lab
(MFL) signed a research collaboration
agreement in April this year to provide
scientific metrology expertise and
consultancy for the establishment
of a primary liquid flow standard,
construction of a heavy hydrocarbon
calibration rig (HHCR), and a R&D lab
in flow measurements for bunkers. MFL
is investing approximately S$20m for
the building of the R&D lab, HHCR and
associated facilities.
The lab will be the first of its kind
to use actual bunker fuel as the flow
medium. When completed, the facility
will give the local maritime industry a
head start in allowing locally-calibrated
bunker mass flow meters (MFM) to have
a direct traceability to the standard
mass.
On the collaboration, Dr Thomas
Liew, NMC’s executive director, says:
“This assures business partners -
owners and buyers - of quantity
standards, promotes fair trade, and also
enables local suppliers to attain industry
standards and related accreditation/
certification, enabling them to access the
global market.”
The global maritime knowledge hubLocal firms are pioneering solutions
57www.seashipnews.com
Cruise
Southeast Asia needs to improve
in terms of cruise infrastructure
and to have more adequate ports
that can accommodate larger cruise
ships. “These are crucial as cruising is a
regional business,” says Christina Siaw,
ceo of the Singapore Cruise Centre.
The Singapore Cruise Centre is
continually upgrading its own facilities,
with more than 600,000 passengers
using its terminal every year.
The biggest investment came two
years ago when the centre spent S$14m
revamping its HarbourFront Cruise &
Ferry Terminal.
Among the works undertaken
– it expanded its passenger space,
doubled the number of check-in and
immigration counters, increased
security lines and improved its baggage
handling system. More recently, the
queue system at immigration was
enhanced to make it faster and more
efficient and free wifi access was
provided throughout the terminal. “We
are very pleased that cruise passengers
can now breeze through our terminal
in a very efficient and expeditious
manner,” Siaw says.
Among many clever ideas on the
software side, the centre has engaged
trainers at Singapore Airlines to train
its frontline staff.
A string of improvements have also
been made to improve passenger flow
at Marina Bay Cruise Centre Singapore
(MBCCS).
The number of check-in counters and
x-ray machines have been increased to
allow more passengers to be processed
at the same time. The layout of the taxi
stand has also been enlarged.
The improvements have been made
in response to a traffic jam on Marina
Coastal Drive on April 10 this year,
when two cruiseships were in port at
the same time. This caused a bottleneck
of vehicles arriving at and leaving the
cruise centre.
Fortunately, the Marina South Pier
MRT station has just opened after nearly
five years of construction.
The newest station on the North-
South Line will serve Marina Bay Cruise
Centre as well as Marina South Pier, and
future developments in the Marina Bay
downtown area.
Changi Airport Group (CAG),
Singapore Tourism Board (STB) and
Princess Cruises have created an
initiative aimed at growing Asia’s fly-
cruise segment and promoting demand
for cruise holidays from Singapore.
This is the second Carnival brand CAG
and STB have teamed up with following
a similar initiative with Costa Cruises
last year.
Singapore’s efforts to have the right
cruise infrastructure in place should
pay dividends with Asia now widely seen
as the fastest growing cruise market in
the world.
The Cruise Lines International
Association (CLIA) has just released a
study on Asia cruise trends in which it
noted next year will see 26 cruise brands
operate 52 ships in Asia, nine of which
are year-round. In 2013 there were 802
Asia-Asia cruises, in 2015, there will
be 981. The growth in capacity is even
more impressive, driven by increasingly
large and modern ships being deployed.
Last year, there was capacity for 1.4m
guests to take Asia-Asia cruises, next
year there will be room for 2.05m, an
annual growth of 19.5%. On top of that,
CLIA reports another 115,360 guests
may transit through Asia on longer
voyages, up 25% per annum from the
73,616 capacity in 2013.
The republic is set to welcome many more tourists by sea
Scaling up
October
21 22 23 24 25 2627
2829
30 31
Kwok Han Ying, a former crewing executive for Vermont UM Shipping, found guilty of multiple offences
New maritime recruitment firm, Direct Search Asia, opens in Singapore
Bunker supplier Vanguard Energy foldsSembcorp Marine’s former group finance director sentenced to 39 months
in prison for falsifying accounts of Jurong Shipyard
58 www.seashipnews.com
Singapore has a bewildering volume of maritime events lined up for next year. SeaShip News picks out the must-attends
Networking
The race is on
Anyone who has
visited Singapore will
notice the abundance
of maritime business and
networking events. In fact
you could probably host an
event without even telling
anybody and at least a dozen
maritime bods would show
up. At SeaShip News we
attend events all through
the year and have done the
legwork for readers on what
to attend during 2015.
When it comes to meeting
shipowners and managers, look no further
than the Singapore Shipping Association
(SSA). With 474 member companies, a
visit to the regular cocktails held by SSA
should put you in a room networking with
around 500 members of the Singapore
shipping community. Drinks are usually
held early in the year for Chinese New
Year, mid-year for the Annual General
Meeting, and December to wrap up
the year. We recommend the mid-year
drinks if you want to meet the heads of
Singaporean shipowners. The association
also holds a dinner in September, which
attracts more than 2,000 attendees,
enough to challenge even the best power
networkers in the maritime industry.
A key week in the Singapore shipping
calendar is Singapore Maritime Week.
Held every April, and organised by the
Maritime and Port Authority of Singapore
(MPA), Maritime Week provides a platform
for every event company to put their
best event in the mix as the industry
celebrates everything maritime. The
coming year includes events such as the
7th Offshore Support Vessels Conference,
International Chemical and Oil Pollution
Conference, and TOC Container Supply
Chain: Asia. The main highlight of the
week is usually the MPA’s Singapore
Maritime Lecture and also the Singapore
Maritime Foundation supported
conference and exhibition, Sea Asia,
which attracts over 10,000 visitors.
During Singapore Maritime Week,
plenty of drinks receptions are held with
at least two or three to choose from each
night for those needing to slake their
thirst. SeaShip News is not one to let
everyone else have all the fun, and each
year we organise drinks at Marina Bay
Sands to celebrate with our friends and
customers. Supported by our clients such
as M3 Marine and Transas, around 200
gather at Marine Bay Sands to drink and
network al fresco late into the night. A
definite highlight of the week!
Come the end of Singapore Maritime
Week, those that have had enough
of looking at propellers
and studying powerpoint
presentations can seek
refuge at the Singapore Yacht
Show 2015.
If one week full of events
isn’t enough, after the
famous Singapore Grand
Prix each September follows
another week of events.
Highlights of this autumnal
gathering include the Marine
Money Asia conference
which attracts around 500
delegates, including plenty
of shipowner bosses looking for new and
innovative ways to access funds. There is
a host of other conferences organised for
those who can’t get enough, and the week
signs off in style on the Friday with the
SSA dinner referred to earlier, making this
another great week to be in town.
Throughout the year if you’re looking
for something a bit more intimate,
Singapore Marine Network organises a
series of evening receptions, targeting
crowds of around 100 executives on
a quarterly basis. SeaShip News also
hosts an annual lunch via our flagship
title, Maritime CEO, where we invite the
republic’s key owners for discussion on
pressing issues, and we also organise
occasional invitation only breakfasts to
discuss topics such as offshore and the
environment.
There are plenty of corporate parties,
functions and conferences all through the
year so if visiting Singapore it is always a
good idea to combine some business with
pleasure.
POLE POSITION A week of shipping events handily takes place just after the Grand Prix in September
November
1 2 3 4 5 6 7 8 9 10 1112 13
14 15
AusGroup buys Ezion Holdings’ marine supply base business
Höegh Autoliners and Wallem Ship Management form jvThoresen launches bulker pool in Singapore
OW Bunker files for bankruptcy after $125m fraud at its Singapore subsidiary
59www.seashipnews.com
Travel
Berthed in Singapore with some time to kill? Here’s the inside low down on what to do
Spin the wheel
Head to the Robertson Quay area
and start your day with breakfast
at one of Singapore’s hippest
cafes: Kith Cafe - hands down best
coffee in town, or Epicurious - green
eggs and ham, oddly delicious (both
on Robertson Quay); or Baker & Cook
(nearby on Martin Road) who make
pastries to die for. Then stroll along
the Singapore river, from Robertson
Quay to the city (about 3 km). Along
the way you’ll pass Clarke Quay, the
Singapore parliament and civic district,
and Boat Quay, with spectacular views
of Singapore’s skyline. Criss-cross the
river at various bridges and make sure
to see the bronze sculptures that dot the
riverfront along the way.
For a touch of culture, pop into the
Asian Civilisation Museum at Empress
Place, where you’ll find a stunning
museum in an equally stunning setting.
The museum often has excellent
temporary exhibitions.
Next up: time to shop. Singapore is a
land of shopping malls, so why wouldn’t
you have a quick wander through the
best one? Cab to the Ion on Orchard
Mall. The top floors are wall-to-wall
designer brand names; you’ll find cooler,
funkier stores in the basement levels.
Remember most stores don’t open until
11am. If you are up for it, stroll along
Orchard Road and check out some of
the other malls – the section from Ion to
Paragon Mall is best.
By now you should be hungry
again, so make like a local and head
to a hawker stall, which is where
Singaporeans get most of their daily
sustenance. The Opera Food Court at
Ion is a bustling yet gentle introduction
to eating, Singapore style. Try local
favourites like Hainan chicken rice,
laksa (spicy curry noodles and seafood
soup) or Singapore chilli crab. For
real local flavour try coffee si – strong
brewed coffee with condensed milk,
and a serving of kaya toast (a green jam,
made of pandan leaf, egg yolk and sugar
– sinfully delicious). Finish with a deep-
fried dough-ball ‘butterfly’, and your
local dining credentials are assured.
A short cab ride from Orchard Road
is the Singapore Flyer (pictured), one of
the world’s largest observation wheels.
A full cycle takes thirty minutes. Yes, it
is cheesy and touristy, but it’s world-
class, and the views along the way give
a real sense of the modern miracle that
is Singapore. For the truly adventurous,
visit Kenko Fish Spa in the mall beneath
the flyer. Plunge your feet and lower-
legs into tubs of water and watch small
fish nibble the dead skin away. It might
sound gross, but is a completely unique
sensory sensation (a cross between
massage, static-shock and tickling), and
your feet will be smoother than a baby’s
bottom when you are done. You can
also get an excellent reflexology foot-
massage or shoulder rub as well.
Singapore’s latest gob-stopping
attraction – the Gardens by the Bay
- is a short cab ride from the Flyer,
and is absolutely worth the hype.
Here you will see flowers and plants
galore, spectacularly displayed in giant
greenhouses, complete with indoor
mountains and waterfalls. Don’t miss
the Supertrees, a grove of massive
treelike structures covered in flora of
the world. Once you’re all flowered out,
cross the bridge and head to the Marina
Bay Sands Hotel. Its tri-towers are an
architectural marvel. Buy a ticket and
ride the elevator up to the Skypark.
Views are sublime, and the world’s most
spectacular infinity swimming pool,
58 floors up, is something to behold. A
cocktail up in the sky, or a meal at the
ultra trendy Ku De Ta restaurant, will be
the perfect way to end your day.
November
21 2019181716 22 23 24
25
26 27 28 29 30
Andreas Sohmen-Pao takes over as chairman of BW Group
Viking Asset Management establishes new subsidiary, Viking LR2MPA signs R&D MoU with Singapore Management University
Just shy of 500 people voted in our online poll about Singapore’s place in the maritime world. Results plus juicy comments are carried below
Your opinion
Is Singapore the world’s leading maritime centre?
Are current restrictions on foreign talent and workers affecting your business in Singapore?
How effective has the government’s policy of getting more Singaporeans to work in the maritime sector been to date?
Is the talent pool among local workers both large enough and of high enough quality for the city’s fast growing maritime sector?
Does Singapore’s high cost of living – recently crowned the most expensive place to live by The Economist – mean much shipping operations will relocate elsewhere?
Could Singapore be doing more to help crack down on maritime piracy in the region?
Yes 79%No 21%
Yes 79%No 21%
Yes 53%No 47%
Yes 53%No 47%
Very effective 8%Quite effective 33%Not effective 59%
Very effective 8%Quite effective 33%Not effective 59%
Yes 23%No 77%
Yes 23%No 77%
Yes 62%No 38%
Yes 62%No 38%
Yes 85%No 15%
Yes 85%No 15%
“ Without a doubt and the trend is only to consolidate this position”
“ Singaporeans won’t take up work that requires manual labour”
“ Retention is not effective. Whether in office positions or seagoing positions, the sector is still a springboard to move on to something else”
“ All companies in Singapore need to increase productivity and that will balance out any temporary under supply”
“ Salaries have not kept pace with the increase in the cost of living”
“ The Singapore efforts are restricted by the other nations involved”
Singapoll
Siemens PLM Software: Smarter decisions, better products.
© 2
01
4 S
iem
ens
Pro
du
ct L
ifec
ycle
Man
agem
ent
Soft
war
e In
c. A
ll ri
gh
ts r
eser
ved
. Si
emen
s an
d t
he
Siem
ens
log
o a
re r
egis
tere
d t
rad
emar
ks o
f Si
emen
s A
G.
All
oth
er lo
go
s, t
rad
emar
ks o
r se
rvic
e m
arks
use
d h
erei
n a
re t
he
pro
per
ty o
f th
eir
resp
ecti
ve o
wn
ers.
Make a breakthrough in shipbuilding.
Answers for industry.
Optimize shipbuilding for on-budget, on-schedule, high-performance vessels.
Fleet operators are aggressively upgrading their fleets to meet demands for mission-flexible, energy-efficient and environmentally friendly ships.
To capitalize on demand for the “Future Fleet,” you need to break through. You need to take a holistic approach to shipbuilding that integrates and optimizes operations across the enterprise—from engineering and suppliers to production and service.
Siemens PLM Software can help. Our PLM for Shipbuilding solution enables shipbuilders to design massive models easily, deliver the right ship on time and ensure maximum fleet availability.
Learn more about our solution for the Future Fleet at bit.ly/breakthrough8
PLM for Shipbuilding enables a holistic approach to shipbuilding that optimizes engineering, production, supply chain management and service and support.
Hotlines:800-120-4620
(Singapore)
1800-812843 (Malaysia)
852-2230-3308 (Other Countries)
Siemens Industry Software Pte LtdEmail: [email protected]: www.plm.automation.siemens.com/en_sg