The DEEP HELDER arriving in Ijmuiden for the christening ...

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2014 – 172

Distribution : daily to 28900+ active addresses 21-06-2014

Number 172 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Saturday 21-06-2014

News reports received from readers and Internet News articles copied from various news sites.

The DEEP HELDER arriving in Ijmuiden for the christening ceremony

Photo : Guido Akster ©

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EVENTS, INCIDENTS & OPERATIONS

the 2013 built CYM flag super yacht EVENT leaving Manoel Island Marina at Marsamxett Harbour, Malta on Saturday

14th June, 2014. Photo : Capt. Lawrence Dalli - www.maltashipphotos.com ©

Asia Dry Bulk-Capesize rates to hold steady; panamaxes to fall more

By Keith Wallis Rates for capesize bulk carriers on key Asian routes are set to hold steady as charterers maintain leasing activity, even as Asian rates for smaller panamax vessels have plunged to their lowest since January 2013 on a dearth of cargoes, brokers said. Capesize rates on benchmark routes from Brazil to China and Australia to China began rising again this week on renewed chartering activity from the big miners after declining last week. "There was more chartering activity on Wednesday. A dozen or so ships were fixed after a slow start to the week," said one Singapore based capesize broker on Thursday. Capesize rates have see-sawed since April, rising and then falling although each peak has generally been higher than the last, Reuters freight data showed. The big question is whether it is sustainable," the broker said, adding he thought the volatility would continue until August when capesize rates would show stronger gains on increased cargo demand. While owners are resisting pressure from charterers to push Australia-China freight rates lower, there are some 80 capesize ships available on the spot market in the Pacific basin which could push rates lower, the broker said. But with around 20 capesize fixtures this week, some of which are unreported, excess tonnage

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could be soaked up to hike rates further, the broker said. Rates for the Western Australia-China route closed at $7.70 per tonne on Wednesday, although the last concluded fixture was slightly higher at $7.80 per tonne. This compared with last Wednesday's close of $7.90 per tonne although rates had dropped lower by Friday. Rates for the Brazil-China route closed at $20.60 per tonne on Wednesday, unchanged from last week, although the last done was higher at $22 per tonne. But Wednesday's close was on a rising market this week, against a falling market last week. (There are) glimpses of improvement following days of softening and consequent surge of confidence for the big ships as major miners keep taking July loaders on the important Brazil/China ore route," Norwegian broker Fearnley said in a note on Wednesday.

The bulker SRI PREM VARSHA anchored off Singapore last Tuesday morning

Photo : Piet Sinke © – CLICK on the photo or hyperlink to view the High Resolution version of the photo

By comparison rates in the Pacific for panamax vessels, ships about half the size of capesize, are continuing the plunge that started a month ago.Rates are below operating costs which has led owners to idle ships in China rather than fix loss-making voyages, brokers said, as too much tonnage chased too few cargoes. "It's terrible. It's really depressing," said a Singapore-based panamax broker. Rates for a panamax transpacific voyage <.BPHJ> closed at $4,111 per day on Wednesday, down from $5,322 a week earlier, while the last concluded fixture was lower at $3,906. Rates have steadily fallen from $8,031 per day on May 20. Daily operating costs for panamax vessels are about $7,000 per day, according to estimates from consultant Drewry Maritime Research. The fall in rates is likely to continue until mid-July when charterers increase the volume of north Pacific grain cargoes, the broker said. Some capesize charterers, who would take advantage of the arbitrage between capesize and panamax rates by splitting a single capesize cargo into two panamax shipments, have yet to try to benefit from the rate differential, the broker said. "The panamax market needs to show substantial falls for a sustained period before charterers split cargoes," the broker said. Owners of supramax vessels are seeing rates of about $5,000 per day for a voyage from Indonesia to China as overtonnage weighs on the market, a broker said. The Baltic Exchange's main sea freight index closed at 867 on Wednesday, down from 973 a week earlier. Source : Reuters (Editing by Muralikumar Anantharaman)

China Shipping Line’s XIN ZHAN JIANG westbound in the Singapore Straits


PIRACY ANCHOR SAFE ZONE Indonesia will demarcate designated safe anchorages within some ports in an effort to tackle the issue of piracy in national waters. “The association has learned that Indonesian authorities are seeking to tackle the issue of security in

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their national waters and are taken further steps, including steps by the Indonesian Marine Police, in having designated safe anchorages within some ports, which will be monitored and patrolled regularly,” said Skuld P&I Club in an advisory, republished from a statement from Intercargo. Skuld warned that pirates are starting to target tankers in South Asian waters for the purpose of hijackings and cargo thefts. Source : Shiptalk

Bureau Veritas launches industry-backed tug guidelines

Leading international classification society Bureau Veritas has worked closely with the towing industry to develop a comprehensive set of Guidelines for Design, Construction and Operation of Tugs. The Guidance Note provides harmonised and rationalised safety rules for tugs in an area of marine safety where there are many vessels not covered by international conventions and no agreed international rule framework. Gijsbert de Jong, business development manager for offshore service vessels and tugs at Bureau Veritas says, “Active involvement with industry stakeholders was vital to building these rules. They are pragmatic and they are developed around the latest technical developments with an open mind towards innovation.”

Bureau Veritas has worked in close co-operation with a number of industry leaders, including Robert Allan Ltd, Damen Shipyards, Smit Lamnalco/Smit Towage and Kotug International, building the new framework on feedback received on experience with the work of the SafeTug JIP, which reported in 2010. The rules allow designers and builders to select an operational profile and safely configure the tug safely. The requirements cover design loads, stability criteria, strength and operational criteria for towing equipment and anchor equipment. For ships not covered by the SOLAS Convention a practical safety matrix with requirements for fire safety, life-saving appliances, radio installations and navigation equipment is included which takes into account the familiarity of the crew with the operating area and the availability of shore facilities and emergency assistance.

The tug’s design capability limits are clearly set out. For harbour tugs and seagoing tugs the maximum bollard pull will be indicated, while for escort tugs the maximum steering force, maximum braking force and maximum escort speed will be stated. Says de Jong, “Bureau Veritas is the world leader in the classification of tugs, with over 1,650 tugs in class and 300 newbuilding tugs on its order book. That represents a 22 per cent market share of IACS-classed tugs. The global market for tugs is changing quickly as ship sizes increase. There are also more offshore terminal operations, broader escort requirements and increased pressure to reduce emissions. One of the issues facing the tug industry is a lack of clear global safety guidelines and rules. BV’s new Guidelines for Design, Construction and Operation of Tugs will set a new baseline for all tug builders and operators and help make the whole industry safer and more effective.”

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NEW LIFEBOAT STATION IN MARYPORT TO BE OFFICIALLY OPENED

Another chapter in Maryport’s maritime history begins this weekend with the official opening of the town’s new lifeboat station. The inshore rescue crew want members of the public to join them on Saturday afternoon for an open day and a first-hand look at the £450,000 boathouse. It is part of a wider £1.2 million investment in Maryport harbour, to allow

rescuers to deal with incidents more quickly, buy new equipment and provide more space for storage. Station officer Mike Messenger, said: “The building is great. It is a big facility and we have room for everything we need. The old boathouse was too small and was not fit for purpose as we couldn’t fit the equipment in. “We are inviting the whole town down on Saturday to look at the new facility and have a chat with the crew.

Left : Station officer M ike Messenger in the old cramped station

It’s not every day you get a new lifeboat station built – it’s a one-off event.” After trying for a

decade to raise funds and gain planning permission, the old boathouse which was built in 1865, was finally flattened a year ago to make way for the development. The new building houses the lifeboat, which is on all-year-round call for emergencies in the Solway Firth, and the equipment that was used in the 2009 Cockermouth floods. Funding for the new boathouse and harbour investment has come from Britain’s Energy Coast, the Nuclear Decommissioning Authority, Sellafield Ltd, Nuclear Management Partners and FLAG – Fisheries Local Action Group. On Friday, a small gathering of funders and local dignitaries will attend an opening, with Workington MP Tony Cunningham cutting the ribbon. The rest of the £1.2m investment is being used to make the harbour area a tourist destination, with the bulk of the remaining cash earmarked to mend the wall of the Senhouse dock at the marina. Source : News & Star

China’s drilling rig likely to move China’s oil rig Haiyang Shiyou-981, illegally stationed in Vietnamese waters, was probably preparing to move to a new position on June 17 as it lowered its two cranes, according to Vietnam News Agency reporters at the site. The Vietnam Fisheries Surveillance fleet has intensified its monitoring of the area where the rig is illegally standing. Unusually, Chinese ships approached Vietnamese vessels from directions different from those during previous days, while continuing to deliberately disrupt them from approaching close to the rig. According to the Vietnam Fisheries Surveillance force, China on June 17 maintained 136 ships, including five battleships, to surround the rig. They kept on circling and standing ready to ram Vietnamese vessels, while approaching them to a distance of 30-50m.In addition, Chinese fishing ships escorted by a coast guard ship formed a line to block and disturb Vietnamese fishing boats undertaking their normal catching activities at about 30 nautical miles from the rig. At the beginning of May, China illegally dispatched the rig as well as a large fleet of armed vessels, military ships and aircraft to Vietnam’s waters and positioned the rig at 15 degrees 29 minutes 58 seconds north latitude and 111 degrees 12 minutes 06 seconds east longitude, 80 miles deep inside Vietnam’s continental shelf and exclusive economic zone. Despite Vietnam’s protest, China has expanded its scale of operation and moved the rig to 15 degrees 33 minutes 36 seconds north latitude and 111 degrees 34 minutes 11 seconds east longitude, 60 nautical miles deep inside Vietnam’s continental shelf and exclusive economic zone. Chinese helicopter lands on Haiyang Shiyou-981 A Chinese helicopter at 9:35 am on June 17 landed on drilling rig Haiyang Shiyou-981, which is illegally standing in Vietnam’s exclusive economic zone and continental shelf, according the Vietnam Fisheries Surveillance Department. On the day, China maintained 136 ships, including coast guard, cargo and fishing vessels, tugboats, and five military ships, to surround the rig. The Chinese fleet kept on circling and standing ready to ram Vietnamese vessels, while approaching them to a distance of 30-50m, the department reported. In addition, Chinese fishing ships escorted by a coast guard ship coded 46102 formed a line to block and disturb Vietnamese fishing boats undertaking their normal catching activities at about 30 nautical miles from the rig. Despite strong wind and rough sea, Vietnamese ships continued their mission and tried to get closer to the rig to protest and demand China move it from Vietnam’s waters.



At the beginning of May, China illegally dispatched the rig as well as a large fleet of armed vessels, military ships and aircraft to Vietnam’s waters and positioned the rig at 15 degrees 29 minutes 58 seconds north latitude and 111 degrees 12 minutes 06 seconds east longitude, 80 miles deep inside Vietnam’s continental shelf and exclusive economic zone. Despite Vietnam’s protest, China has expanded its scale of operation and moved the rig to 15 degrees 33 minutes 36 seconds north latitude and 111 degrees 34 minutes 11 seconds east longitude. The new location is 60 nautical miles deep inside Vietnam’s continental shelf and exclusive economic zone. Source : Vietnamnet

The FORTE seen in her new DOCKWISE Livery anchored off Singapore – Photo : Andre Korver ©

RMT demands action over Scottish ferry scandal

SHIPPING UNION RMT demanded urgent action from the Scottish and UK Governments, the Maritime and Coastguard Agency and and the ITF, over the scandalous exploitation of a group of Estonian shippers working for CalMac on a time chartered freight vessel between Ullapool and Stornoway.

The seafarers are working on the Isle of Man flagged Clipper Ranger, chartered by CalMac from a company called Seatruck under the terms of CalMac’s contract with the Scottish Government for lifeline ferry services on the Clyde and Hebrides network. Estonian ratings on the Clipper are paid as little as £4.19 per hour and although CalMac have agreed to make the payment to bring these shippers up to the RMT rate for ratings on the Clyde and Hebrides network, Seatruck have callously refused to accept this payment, as it clearly threatens their rotten operation.

RMT Acting General Secretary Mick Cash said:

“This scandal goes right to the very heart of the RMT’s “Ships of Shame” campaign - low cost crewing of an Isle of Man vessel that works between UK ports and is crewed by Estonians employed on poverty pay below the National Minimum Wage. That is the kind of murky and shadowy operation that is the norm in the British shipping industry in 2014, even on lifeline ferry services to Scottish island communities. The fact that is happening on a route under the control of the Scottish Government raises serious questions about just how seriously they take the issue of exploitation in their back yard. “We are in no doubt that if Seatruck are allowed to get away with this shocking undermining of pay and conditions they will see it as establishing a toe-hold that will enable them to expand their operations across the Scottish Ferry services – destroying jobs and decent pay and conditions in their wake. It is no accident that they are making this anti-union stand prior to the tendering process for the 2016-22 Clyde and Hebrides Ferry Services contract which starts in the autumn. “Today we have written to all of the authorities involved, including the Scottish Government who have appear to have fallen asleep at the wheel on this one, demanding that they intervene to end

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this outrageous situation on a ship sailing between Ullapool and Stornoway. We have no intention whatsoever of allowing this situation to continue and we hope that by exposing it, and by demanding action, it will help shine a spotlight on the shadowy and greedy operations of the leaches feeding off the British shipping industry.” Source : RMT 2014 / Ferries of Northern Europe

18-06-2014 : MINERVA IRIS southbound the Sound (Öresund) Photo : Lars-Eric Frennesson ©

MacGregor launches new Hatlapa steering alert system

MacGregor, part of Cargotec, has launched 'Soteria', a new alert system designed to complement its Hatlapa and Porsgrunn range of steering gear. Named after the Greek goddess of safety, the system has been designed to offer a series of benefits for both ship owners and shipyards. "The system's alert display can be fully integrated on the vessel's bridge, ensuring clear and easy access to a comprehensive range of alerts," explains Henrik Schädel, Hatlapa Drives & Controls expert at MacGregor. "The high degree of integration is also beneficial for servicing purposes.

"The system has been designed for simple, economical installation and requires only one programmable logic controller (PLC), a feature which benefits shipyards," Mr Schädel notes. "Soteria is based on a CAN Bus system, which is very robust and uses standard cabling; this avoids commissioning and operating issues." "Shipyards and ship owners enjoy the pricing benefits of being able to purchase the steering gear and essential accessories from a single source, as well as the ability to receive an all rounded service for their products from one supplier who knows the products and integrated functionalities," he adds. The Soteria system consists of a control cabinet with a touch-screen control panel located in the steering gear compartment, and two further touch-screen panels in the engine control room and on the bridge. If a steering problem occurs, visual and audio warnings indicate one of three classes of alert:

Alarm, displayed in red, indicates a serious problem that needs to be resolved immediately to avoid serious damage to the steering gear. Warning, displayed in yellow, indicates a problem that requires attention but does not present the risk of immediate damage. Caution, displayed in blue, indicates that the stand-by pump has started. It also indicates why the pump has started.

Soteria offers numerous activation options. The required alerts for each pump can be selected from the following list to suit a vessel's particular steering gear configuration:

• Overall system failure • Feeder failure • Hydraulic locking • Low servo oil pressure • Overload • High oil temperature • Safematic isolation system failure



• System error • Grease pump failure • Clogged oil filter • Phase failure • Low oil level • Reduced rudder torque • Stand-by start

The alert system does not affect the function of the steering gear and has been class-approved by Germanischer Lloyd.

Nigeria bans armed guards on merchant vessels

The latest security advisory for Nigeria issued by the Baltic and International Maritime Council (BIMCO) effectively renders the use of armed guards commercially placed on merchant vessels illegal and is highly likely to have major repercussions for the ship owner and the charterer should they be caught with unauthorised armed police or marine police on board, says maritime security company GoAGT. According to BIMCO, there have been a number of ‘blue on blue’ incidents in the last six months and the industry as a whole is concerned about the safety of crew transiting the region. The warning comes exactly a month after a merchant vessel was boarded near Port Harcourt. Its cargo was stolen while the crew were held hostage, despite the presence of a Nigerian naval vessel in the vicinity.

Nick Davis, CEO of GoAGT, said: "BIMCO has taken a strong, proactive stance on this issue. The incident a month ago was entirely preventable with the use of an unarmed adviser and a good radar lookout. The crew were very lucky not to have suffered injury; had they been able to react more quickly and retreated to the citadel the situation would have diffused quickly. The primary concern should be the safety of the personne. Theft in the Gulf of Guinea is unfortunately something ship owners and managers have to deal with and with an adviser on board vessels can avoid a hostage situation during a boarding."

Currently the use of armed guards in the region falls into a legal grey area, he added. “Ship owners and managers being offered so-called 'authorised' armed protection within the Gulf of Guinea by Private Maritime Security Companies are well advised to seek advice from BIMCO, their flag state and the local Nigerian embassy or consulate for the latest advice and protocol prior to parting with money for a service that could have severe operational interruption to normal trading." Source : ftwonline

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Dynaligner Provides Tremendous Cost Savings

Revolutionary device guarantees troublefree operation of marine propulsion trains

More than 20 percent of all machinery claims, as well as catastrophic failure, off-hire and repair costs are caused by misalignment – the cause of almost all propulsion train damages. And it’s even getting worse as modern ship design pushes the envelope. However, a Swedish and Dutch invention provides a total elimination of misalignment and a complete modernisation of today’s obsolete shaft alignment practice. The revolutionary device, the Dynaligner, guarantees troublefree operation of marine propulsion trains, irrespective of ship operation condition or hull deflections, etc. The propeller shafting is correctly aligned at all times during ship operation in order to avoid any mechanical behaviour causing inappropriate bearing loads and wear/vibrations. The patented invention particularly focuses on, protecting the engine/gear, intermediate bearings and the sterntube bearings.

An in-depth article about the device recently has been published in ShipBuilding Industry, Volume 8, Issue 2, 2014. Investors are invited to business this revolutionary device that will change shipping. Analytical Problems Discussions on the analytical problems with propeller shaft alignment have been on-going for decades. Still, the same mathematical models remain in use. It has been obvious that the general and uncritical use of the single-support-point bearing model is one of the main reasons for the poor analyses. This simplified model is inappropriate for analysis of operation conditions as bearing length and clearance are omitted. Only concentrated bearing loads can be considered. It is not possible to analyse how the lubrication oil film acts on the pressure distribution in operation condition. The dilemma is traditionally evaded by assuming even distribution. The concentrated bearing load is simply divided by the supporting area to obtain the pressure, indeed a very hazardous procedure. Sustainable and effective solution Another deficiency of the simplified model is its inability to reveal load peaks in the bearing edges in operation condition. Such load peaks are quite common. They are often counter-directed, which means that an unloaded zone occurs in between. Unloaded zones may cause problems. They are typical vibration sources. Nevertheless, using traditional and obsolete shaft alignment methods is a well-established practice in the shipbuilding industry, including class societies. With the modern technology of today it is high time for a modernisation. An update with Dynaligners and the ‘multi support point bearing model’ will open a new chapter in shipping and ship’s shaft alignment. The Dynaligner consolidates sustainable and effective solutions of the problems of ship’s shaft alignment. It replaces the traditional one-off procedure of manual shaft alignment at the shipyards. Instead, continuous and automatic adjustment of the bearings are performed during ship operation. The ingenious core of the whole invention is how to keep the bearing house solid to the foundation structure during adjustments. Controlling software is included. Totally eliminating misalignment The Dynaligner solution aims to totally eliminate misalignment during ship operation. All problems related to misalignment will become history for the ship owning industry that until now has been helpless in the face of misalignment. A satisfactory operating alignment will become something to take for granted. The Dynaligner is the only alternative that meets the objective. It will solve all problems and overcome all deficiencies mentioned above. The installation can be carried out on new builds as well as on existing vessels in service when the vessel is in dock for propeller shaft survey. For the ship owner, the most important economic advantage of using Dynaligners is saving all the costs brought about by misalignment, not least the class-required regular stops for tailshaft survey in dock. There are no delays during the new build phase due to shaft alignment procedure. The troublesome jack and sag&gap methods are not needed anymore. The propeller shafting can be installed before the superstructure is mounted on the hull, which will save a lot



of time. It’s a solution that makes sense: disengaging the propeller shaft bearings from the ship foundation and hull deflections. Dynaligner and the controlling software Softalign could well be the innovation that changes shipping. About the inventors Based in Sweden, Anders Rubin from Propulsion Software AB is a consultant in vibration and alignment of ship’s propulsion machinery. He has an MSc from the Royal Institute of Technology, Stockholm, Sweden. In The Netherlands, Willy Rantanen of De Fin - Offshore & Hydraulics is a consultant in hydraulics in the offshore and shipping industry. He has a DSc in applied physics.

Van Oord’s AEOLUS enroute Rotterdam –

Photo : Jan van der Klooster - http://scheepvaarthoek.blogspot.nl/ ©

Dutch vessel begins mapping ocean floor for next phase of MH370 search

The Dutch survey vessel given the contract to search missing Malaysia Airlines flight MH370 in a defined search area has started its operations, the Canberra-based Joint Agency Coordination Centre supervising the search said today. .. Fugro Equator has joined Chinese PLA-Navy ship, Zhu Kezhen, in conducting the bathymetric survey or mapping of the sea floor, covering some 60,000 square kilometres. JACC said both ships would send survey data to the Australian Transport Safety Bureau (ATSB) and Geoscience Australia. "This data will be used to progressively build a map of the search area," it said. Photo left : Mike Meade – M3 Marine Group ©

The works are in preparation for the next stage in the hunt for the missing plane in August, which will focus on a deep water search. This new search area will be confirmed before the end of this month after "extensive collaborative analysis by a range of specialists", said JACC. It added that Zhu Kezhen has surveyed

4,088 square kilometres of the ocean floor. Flight 370, which has been missing with 239 people since March 8, has

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remained one of the biggest aviation mysteries, with no sign of its wreckage despite more than two months of air, sea and deep water search in the southern Indian Ocean. The search operation was forced to suspend last month pending a study of the ocean floor. Australia has set aside A$90 million for the next phase of the search, including A$60 million for underwater search. After calling for interested companies, the company operating Fugro Equator was awarded the mapping contract on June 10. The vessel is fitted with state-of-the art multibeam echosounder equipment. Source MSN News

Chinese move buys shippers time The Chinese government’s decision to reject the P3 Network may ease the threat to major container shippers in Taiwan and Asia, allowing them more time to boost their competitiveness. The Chinese Ministry of Commerce on Tuesday said it had rejected the application to establish a large-scale alliance between the three largest carriers in the world — Denmark’s A.P. Moeller-Maersk A/S, Switzerland’s Mediterranean Shipping Co and France-based CMA CGM SA — saying the collaboration posed a threat to fair competition in the container shipping industry. The Financial Times’ correspondent in Beijing reported yesterday that it was the first time that the ministry rejected a transaction that did not involve a Chinese company. The US Federal Maritime Commission had approved the network, and EU regulators had given their tacit approval, the paper said. “Asia[n] liners may now be able to compete on more level ground,” Goldman Sachs analyst Ronald Keung (姜朗霆) said in a client note yesterday. Yang Ming Marine Transport Corp (陽明海運) chairman Frank Lu (盧峰海) echoed that view.“Asian container shippers may face lower negotiation pressure [on freight rates] and get more time to upgrade their fleets to save costs and boost profitability,” Lu told reporters after the company’s annual shareholders’ meeting. However, major container shippers had made efforts to form their own partnerships in anticipation of the proposed P3 alliance, Lu said, including the G6 alliance, which has received all the necessary regulatory approvals, and the expected CKYHE alliance on the routes between East Asia and Europe. The latest data provided by Alphaliner, a research institute for the container shipping sector, showed that the CKYHE alliance, which includes Yang Ming and Evergreen Marine Corp (長榮海運), took 23.6 percent of overall shipping capacity for lines between East Asia and Europe, with the G6 alliance at about 28 percent. Yang Ming is scheduled to take delivery of 15 vessels of 14,000 twenty-foot equivalent units (TEUs) over the next two years to upgrade its fleet’s energy efficiency. The 15 vessels could help save as much as NT$6 billion (US$199.53 million) a year for the company compared with its current fleet, according to Yang Ming’s internal estimates. As of last month, Yang Ming began to post a profit for this year, a company official said, adding that profitability in the third quarter — the traditional peak period for container shippers — will be key to determining whether the company returns to the black for the whole of the year. Yang Ming posted NT$1.56 billion in net losses in the first three months of the year, or NT$0.48 per share, its filing to the Taiwan Stock Exchange showed. At a general meeting yesterday, shareholders approved Yang Ming’s management’s plan not to distribute dividends this year, after the shipper posted a net loss of NT$2.95 billion, or NT$0.9 per share, last year. Evergreen Marine, the nation’s largest container shipper, announced earlier that it would not pay dividends, while Wan Hai Lines Ltd (萬海航運) shareholders have approved a cash dividend of NT$0.8 per share, making it the only listed container shipper in Taiwan to distribute dividends this year. Source : Taipeitimes

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Seacurus calls for enforcement of Port State Control regulations on MLC

Specialist marine insurance intermediary Seacurus has called for proper enforcement of Port State Control regulations in the lead-up to adoption of amendments to the Maritime Labour Convention 2006 designed to protect abandoned seafarers and seafarers injured in occupational accidents. The MLC amendments are scheduled to enter force in early 2017, at which point those countries which have ratified MLC 2006 will be bound by those amendments unless 40 per cent of ratifying nations reject the new provisions in writing. Before then, however, on 20 August 2014, an ILO resolution agreed by member states in 2006 comes into effect whereby full Port State Control (PSC) can be applied by nations which are a party to MLC 2006, regardless of whether or not the ships being inspected are flagged with nations which have ratified the convention. This is the so-called ‘no more favourable treatment’ clause which seeks to ensure a level playing field whereby ships of countries which have ratified MLC 2006 will not be placed at a competitive disadvantage.

Seacurus managing director Thomas Brown says, “This rigorous inspection programme may force shipowners to demonstrate to PSC inspectors that the crew managers and seafarer recruitment and placement services with whom they work can confirm compliance with Regulation 1.4 of MLC 2006 by providing evidence of a system of financial security to cover seafarers’ monetary loss in the event of their employers’ contractual default. “It is to be hoped that this regulation, if properly enforced by PSC, will offer a degree of protection to those at sea over the next two and a half years, while the industry prepares for the now inevitable regulatory requirement in 2017.” l Seacurus Ltd, part of the Barbican Insurance Group and authorised and regulated by the FCA, is an insurance broker founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. In 2013 it launched CrewSEACURE, the first ever insurance policy designed exclusively to protect the rights of seafarers when ships are abandoned at sea. Seacurus is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

Formed in 2007, Barbican Insurance Group underwrites business predominantly through its Syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market and number of service companies including, Barbican Underwriting Limited, Castel Underwriting Agencies Limited, Professional Indemnity Protect Limited and Seacurus Limited. Barbican Syndicates at Lloyd’s have a stamp capacity of £250m for the 2014 year of account and underwrite marine, aviation and transport re/insurance, property re/insurance and specialty lines including casualty reinsurance, cyber liability, healthcare liability, financial and professional lines and professional indemnity. www.barbicaninsurance.com

Principal fired over Sewol ferry disaster The principal of a high school, which lost 244 students and 10 teachers in the deadly Sewol ferry disaster in April, has been removed from his post, according to the local education office. "I cannot reveal detailed reasons for his removal because it is personal information, but it is regarding the Sewol accident," said an official with the Gyeonggi Provincial Office of Education. Ferry survivors honor lost classmates Parents try to heal after ferry disaster School hit by ferry tragedy reopens The second-year class from Danwon High School was on a school trip on the ill-fated ferry on April 16. The Sewol ferry departed from Incheon headed to Jeju island carrying 339 students and teachers when it sank. Of the school group, 77 were rescued. Later that month, classes resumed with remaining students and staff in shock and grief, as nearly an entire class had been lost. The name of the dismissed principal was not released Wednesday. "The decision was made a while ago, but was carried out only recently because the focus was on dealing with the accident," said the education official. Overall, 12 people remain missing and 292 died in the Sewol incident. Three days after the Sewol ferry sank, the vice principal of Danwon High School, who had been rescued from the vessel, was found dead after apparently hanging himself. Kang Min Kyu, 52, had expressed regret in a note that he had survived while so many others had died.Source : CNN

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86-year-old tugboat doing canal work in Utica runs on electricity

At 86, you might think it was long past time to retire. Instead, the Tender 4 tugboat has a brand new all-electric engine, combining environmentally-sustainable engineering with retro yellow and blue style of the canal system in 1928. The boat took Utica Mayor Robert Palmieri for a short ride after it was unveiled. The Tender 4 will be put to work removing buoys and doing canal maintenance work along the Utica section of the Erie Canal, New York State Canal Corporation Director Brian Stratton said. The upgrade was made possible through collaboration with New York State Canal Corporation, NYSERDA and the New York State

DOT, New West Technologies and Elco Motor Yachts. Right now, about 54,000 homeowners get power supplied by the canal system, Stratton said. The all-electric engine was designed by Elco Motor Yachts and needs only to be charged at night before carrying out its duties on the Utica portion of the canal system. Source : uticaod.

No progress in Sewol search operation Divers made no headway in their search for those still missing in April’s deadly ferry sinking for a 10th day on Wednesday amid growing concerns that the upcoming rainy season could further hamper the Herculean job. Dozens of Navy, Coast Guard and civilian divers combed the sunken ship to find 12 people still unaccounted for 64 days after the boat sank off the country’s southwestern coast, but in vain. With no bodies being recovered for the 10th straight day on Wednesday, the discovery of one body on June 8 brought the total number of confirmed dead to 292. Fears have further grown over the tardy operations as the rainy season is forecast to begin later this week in the shipwreck region. “Families of the missing people are anxious that the rainy spell and the subsequent strong underwater currents would dampen recovery efforts,” said a lawyer for the families, urging the government to “launch active operations with detailed plans to find their loved ones.” The state response team, in the meantime, filmed the inside of the submerged hull, and allowed the families to see the scenes to have them learn how the search job has been conducted. The 6,825-ton ferry Sewol was en route from the country’s western port city of Incheon to the southern resort island of Jeju when it sank on April 16. Of the 476 people aboard, only 272 people were rescued. Source : Yonhap

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Ship prices are facing different directions depending on asset type and

market segment The dry bulk market is still on “retreat mode” despite the positive outlook expected at the start of the year, especially during the third and fourth quarters of the year. Still, at the moment, rates are falling while the dry bulk orderbook looks to be on the rise, at least on paper, since there is a long road between the signing of a Letter of Intent and the actual delivery of the vessel. This has had a profound impact on ship prices. According to shipbroker Intermodal’s latest weekly report, on the asset side, “particularly in the panamax sector, buyers are becoming scarce, with less and less superficial inspections compared to three months ago. It’s starting to feel like 2012 all over again, but we have a long way to go on the price front. Sellers are still resisting and as long as there are some buyers willing to inspect and offer now that the competition is minimal, prices will continue to stay buoyant”. Meanwhile, according to Intermodal’s SnP broker, Mr. Timos Papadimitriou, “on the boxships front and in contrast to the bulk carriers, the panamax segment is showing an upward movement despite the super sizing that has been taking place in this sector. With Panamaxes having seen such relatively cheap rates it didn’t take much from the firming West Africa trade, which has been the main charter employment lately for several panamax and wide beam panamax units and in essence has cleared up some of the excess tonnage that had accumulated in the market. How long will this continue for, is yet to be seen”. Moving on to the favorite asset type of the private equity funds, the LR1 product tankers, “the aggressive demand for modern assets (i.e. 10 year-old or younger) that still trade CPP, have pushed these ships to soar in value, reaching levels in the region of mid USD 20s million. On the other hand, older than 10 year-old ships are valued considerably less. The order book is indeed limited and with the exception of the Navig8 order, the segment could easily be labelled as “forgotten” in the Newbuilding village. Once more, this is also a case in which the freight market does not support these prices, but leaves hints and hopes for better days to come for the CPP vessels”, Papadimitriou said. He added that “looking at the NB prices for each segment, dry bulk Kamsarmaxes experienced an increase close to 15% over the last 14 months. On the container side, there is significant pressure on yards to increase prices due to their increasing operating costs, but at the same time the lack of feedback from owners has kept prices steady for the time being. On the tankers side, a respective Newbuilding rose from USD 40,5 million back in early 2013 up to over USD 47 million almost a year later”. He concluded by noting that as a result of the above, “we have three markets and three “panamaxes” with different characteristics. The work horse of the dry market, which is close to becoming the old horse being put out to pasture, its containership counterpart that has become the new black horse and the forgotten LR1, which is making a comeback for a limited number of players. How are these ships going to hold against the rising orderbooks and the competition from their smaller and/or larger equivalents, it will be very interesting to see”, Papadimitriou said. Meanwhile, in a separate report from shipbroker Shiptrade and Services, in terms of enquiries of the course of the past week, “Shiptrade’s enquiry index enjoyed a considerable increase this week, that could be attributed to enhanced interest for dry bulkers, following last week, which was undoubtedly quiet. Indices for all segments of the dry sector were increased by above 60%, with Handysize bulkers being the driving force. On the other hand, interest for tankers remained stable and at very low levels, with the exception of MR tankers, interest in which is always there, as well as Suezmax tankers that doubled their total numbers, however still remain at single-digit levels”, the shipbroker noted. Source : Nikos Roussanoglou, Hellenic Shipping News Worldwide

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Lloyd’s Register tops European port state control rankings in 2013

‘Best’ in Paris MoU rankings reflects the breadth of LR’s drive to continually help improve safety and operational performance in shipping The European port state control organisation, the Paris MoU, yesterday confirmed that Lloyd’s Register (LR) was the highest performing Recognised Organisation (RO) in the European port state control area for the rolling three-year period 2011-2013. During this period 11,405 inspections were carried out on LR classed ships and 10 ships were detained for what are known as ‘class related’ factors. In official correspondence to all ROs, Richard W.J. Schiferli, Secretary General of the Paris MOU, wrote: “The best performing Recognised Organisation is Lloyd’s Register.” Commenting on the ranking LR’s Marine Director Tom Boardley said, “This is a significant achievement, as the ranking system is encouraging all ROs to continuously improve their performance. In 2009 LR was in 8th position and we realised this was unsatisfactory, not just for our own reputation but particularly for our clients who had put their faith in our ability to keep their vessels trading without the disruption of detentions. We set out to improve our position with the initial aim of attaining a top three position and then remaining there.” “We began a concentrated effort to improve fleet quality and help owners, managers and ships’ crews to avoid detentions. This activity aligns with our mission to promote safety and to improve the operational performance of the fleets we serve.” There were a number of key activities reinforced and initiatives undertaken by LR. These included: Additional training of LR surveyors, promoting awareness of the need to communicate what needs to be done by ships not just to pass surveys but to stay at the right level to pass port state control inspections for the whole year after a class visit. The publication of the series of convenient Pocket Guide Checklists to help seafarers’ awareness of safety and port state control requirements – these have been highly popular and not just on LR classed ships. The introduction of the first smartphone app for ILO/MLC compliance, followed swiftly by an ISM/ISPS app, which were both well received by the industry and helped promote awareness. The creation of a Fleet Quality Programme (FQP) in 2009 to help owners who were in danger of slipping below required safety standards between surveys. LR amended its classification Rules to permit LR surveyors to inspect ships between scheduled surveys where there was cause for concern in any classed ships. Publicising LR’s concentrated survey campaigns through Class News to owners and managers to raise awareness of port state control requirements. Joanna Townsend, Global Head, Fleet Services, Lloyd’s Register added: “We recognise the importance of identifying ships that are at a high risk of falling below the standards required in the classification rules and statutory requirements as well as the need for awareness of managers and seafarers and better communications with port state control authorities. Our surveyors cannot be on ships all the time. But we can promote safety by working with owners and managers to help them improve compliance with the classification and statutory requirements before they become either at risk or fall below required standards.” Source: Lloyd’s Register

Tokitae ferry service entry delayed The MV Tokitaes entry into service will be delayed at least one week, ferry officials said Monday.

The boat was expected to begin shuttling travelers on and off the South End on Father’s Day, June 15, but crews need a bit more time familiarizing themselves with the new Olympic-class vessel, according to Capt. George Capacci, interim chief of the state Department of Transportation, Ferries Division. “We’re targeting the 24th of June,” Capacci said.

The delay is largely the result of the vessel’s later than expected delivery. The state was expected to take possession of the craft last

month, but a rudder problem pushed it back until June 2, Capacci said. “Two weeks just wasn’t enough time [for crew



training],” Capacci said. While not overly impactful, the setback was disappointing for many Clinton residents who were eagerly anticipating their first ride on the new boat, and shorter ferry-wait lines.

“I’m looking forward to seeing it in service as soon as possible, so it can expedite some of our traffic congestion,” said Bob Craven, president of the Clinton Chamber of Commerce. “Bumping up [vehicle capacity] by 20 will certainly speed things up,” he added. The Tokitae can carry 144 vehicles, compared to the 124-car capacity of the Issaquah Class boats, MV Cathlamet and MV Kittitas, the former of which will be reassigned to the Fauntleroy-to-Vashon route once the new boat begins service on South Whidbey. Sue Ellen White, a Clinton resident, said she wished the state agency had announced the delay sooner, so that those who had made plans to ride the new ferry on Father’s Day would have known ahead of time, but that she also was looking forward to having a “larger, more efficient” ferry on the Clinton-to-Mukilteo route. She attended the vessel’s welcoming ceremony earlier this month, and complimented the Tokitae’s aesthetics, calling it a “gorgeous boat.” She also noted that it’s a monument for a locally built ferry that will serve the community that put it together. “Often they go somewhere else, so this is especially meaningful,” White said. The ferry’s superstructure was constructed by Nichols Brothers Boat Builders in Freeland. It was barged to Seattle and completed by Vigor Industrial. White added that she hopes the legislature and the public will lobby for additional funding to bolster ferry staff on the route. Doing so would allow ferries to open the Tokitae’s uppermost sun deck to the public, and better ensure that runs aren’t scrubbed when an employee doesn’t show up for work. Capacci said the sun deck will be closed off due to U.S. Coast Guard requirements, which mandate a crew of 14 rather the boat’s existing complement of 12. “I’d like to have the sun deck open, but I don’t have the funding authority to do that,” he said. Two more 144-car ferries, currently under construction and destined for the Seattle-to-Bremerton and Anacortes-to-San Juan routes, won’t have that problem he said, as they have crews of 14. Capacci noted that crew numbers in Clinton could change if the state allocated the funding to do so. Whatever happens, he said he was very pleased with the Tokitae. “It’s a good ship and will fit into our system very well,” Capacci said. Source : southwhidbeyrecord

Cargotec adjusts previous estimate on project cost overruns in Kalmar

Cargotec adjusts previous estimate on project cost overruns in Kalmar business area. In connection with the first quarter interim report, Cargotec stated that the majority of sales of the large projects sold in 2011-2012 have been recognised as revenue. In the same context, it was stated that significant cost overruns related to one ship-to-shore crane project sold in 2012 were found. In an analysis conducted thereafter in this specific project, it has become evident, that this project will result in a higher than expected cost overrun for Kalmar in order to deliver the project, the company said in its press release. Cargotec will book approximately EUR 40 million in project cost overruns in Kalmar's second quarter operating profit, in addition to EUR 9 million booked in the first quarter. This is estimated to cover the costs for finalising project deliveries.

President of Kalmar Olli Isotalo will take over the operative responsibility of the Automation & Projects division responsible for project sales and delivery besides his current responsibilities. Processes and related controls of the division will be further strengthened. Management of the above-mentioned ship-to-shore crane project has been replaced and resourcing strengthened, and tightened internal controls have been introduced in order to secure project

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delivery according to plan. In addition, cooperation negotiations have been started to reorganise the ship-to-shore crane business. At the same time, the on-going profitability improvement programme in Kalmar, targeting EUR 40 million run-rate improvement by the end of this year, is proceeding according to plan. Source : portNews

Captain on the bridge? At JMU AMTEC, Aioi, Japan, an accommodation was recently loaded onboard Mv STELLAPRIMA. The accommodation module weighing 700 metric tons and measuring 48,00 x 17,60 x 28,67 meters is destined for the shipyard in Brazil where she will be installed onto an Suez Max Tanker. The deck cargo matched perfectly with the empty reels stowed under deck which Mv STELLAPRIMA is returning to Panama City for the Upper Pyrenees and Moondyne project.

Mv STELLAPRIMA was selected as she can both meet the draft restriction at Aioi as well as the length restriction at the shipyard in Brazil. Due to the size and weight of the accommodation module, the loading was done by floating crane and the discharging will be done by the shipyard’s Goliath crane.

COSCO announces delivery of two bulk carriers

COSCO Corporation (Singapore) Limited announces that COSCO (Zhoushan) Shipyard Co., Ltd , a subsidiary of the company's 51% owned COSCO Shipyard Group Co., Ltd, has delivered two bulk carriers of 64000DWT, “PUERTO ROSARIO” and “PORTO LEONE”, to a European buyer, the company said in its press release. The delivery documents were signed by and between C OSCO Zhoushan and the buyer recently. The bulk carriers measure 199.9 meters in LOA (length of all), 32.26 meters in breadth and 18.5 meters in depth. Source : PortNews

Kuwait's "Journey of Hope" arrives in Malta

Kuwait's "Journey of Hope" boat docked at the port of Malta's capital city of Valletta on Monday from Alexandria, Egypt, as part of its 19-country tour aiming to deliver a message to world for benefit of persons with intellectual disability. The team on board were warmly received by Kuwait Ambassador to Malta Faisal Suleiman Al-Musaileem , the diplomatic staff of the embassy, Military Attache in Paris Dhari Bouresly, coordinator of backup and support Homoud Al-Shemmeri and representative of the executive board of the mission Khaled Al-Athari as well as representatives of Maltese societies caring for persons with disabilities. Welcoming the humanitarian mission to Malta,



Ambassador Al-Musaileem affirmed, in a statement to KUNA, Kuwait's keenness on caring for persons with special needs and backing all initiatives aiming to integrate them with the society. He cited as an example of this care the kind patronage of His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah for this humanitarian mission. "This mission set sail from Kuwait under full support from the political leadership, the state departments, civil societies and families of persons with intellectual disability," Ambassador Al-Musaileem affirmed.

JOURNEY OF HOPE off Marsamxett Harbour, Malta on Monday 16th June, 2014.

Photo : Capt. Lawrence Dalli - www.maltashipphotos.com ©

He thanked all those who contributed to the mission, voicing hope that the mission will succeed in drawing the attention of all people around the globe to the needs of this segment of the society. Malta is the eighth leg in the boat's 19-nation trip which included five member states of the Gulf Cooperation Council (GCC), Yemen and Egypt. The boat will proceed to Washington after its call to Valletta. Source : menafn

NAVY NEWS Germans submarines now appear the

safer replacement bet Within the space of a few weeks the Abbott government has presided over a shake-up of the options for a fleet of submarines to replace the ageing -Collins class. While an evolved Collins class was a short-price favourite at the end of the Labor era, an almighty spat between the Swedish government and German industrial giant Thyssen Krupp Marine Systems means a German design could now fall over the line. The nuclear option remains off the table despite the US indicating it would be amenable to an Australian approach on the Virginia class submarines. Prime Minister Tony Abbott’s enthusiasm for the Japanese Soryu class submarine – one of the most advanced diesel electric submarines on the planet – has also thrown a fresh option in to the mix. Australia is looking for a vessel of about 4000 tonnes, armed with land attack cruise missiles and capable of performing long-range intelligence and surveillance. Officially, Defence Minister David Johnston says all four approaches to the purchase of new submarines are still on the table and to be

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considered as part of the release of a new defence white paper by April next year. The former Labor government pared back the options to either an updated Collins or a new design but the Coalition re-embraced two others – an existing off-the-shelf design only slightly modified to Australia con-ditions or an existing design more -drastically modified.

Senator Johnston also threw grave doubt on both the need for 12 sub-marines and the price tag of up to $36 billion at a submarine conference in Canberra in April, when he said the number 12 had never been justified. “There has been a lot of speculation on whether we need 12 boats,’’ Senator Johnston said. “Let me make it clear that my primary focus is not on -numbers but on the capability and availability of boats required to meet the tasks set by the government.”

German submarines at Howaldtswerke in Kiel

– Photo : Capt. Henk Keijer – Master Eurodam ©

JAPANESE OPTION ON THE TABLE Senator Johnston has also described the Japanese submarine as the most capable conventional submarine in service and closest of all contenders, including European boats, to meeting Australia’s needs. It has been reported that Japan might be willing to sell -Australia the 3500-tonne Soryu. Certainly Australia and Japan are expected to sign a defence technology and sharing deal as part of Japanese Prime Minister Shinzo

Abe’s determination to normalise Tokyo’s defence posture.

But defence sources play down the prospect of Japan selling Australia an entire submarine and suggest it is more likely some of the systems aboard the Soryu could be incorporated into whatever design the Abbott government opts for.

Were Japan to sell Australia a fleet of Soryu submarines, it would be the biggest arms sale since Tokyo relaxed restrictions two years ago and would also presumably sacrifice jobs at Adelaide-based ASC. But such a sale would require the alteration of Japan’s constitutional restrictions on self-defence imposed after World War II and it would ratchet up tensions in the region, incurring the wrath of China. The dispute between the Swedish and German governments, which threatens the “evolved Collins” approach spilled onto the floor of a submarine conference in Canberra in early April after retired Swedish Navy Rear-Admiral Göran Larsbrink of the Swedish government purchasing agency said it had been a mistake to sell Swedish submarine builder Kockums to Thyssen Krupp Marine Systems and the Swedes should reacquire it. Sweden has become increasingly angry, accusing Thyssen Krupp of sidelining Kockums, which the Germans acquired some years ago, in favour of its own subsidiary and German sub-marine builder HDW. The Swedish government owns the Kockums intellectual property for the Collins class submarines and a defence source suggests that unless the row is resolved it effectively rules out the evolved Collins option.

SWEDES TURNS TO SAAB Sweden has now turned to defence giant Saab to build the next generation of submarines for its Navy. Saab has poached some of the workforce from Kockums and is making an aggressive pitch for the Australian project.

But defence sources suggest Saab’s disadvantage is that it has not built a submarine. Kockums was excluded from an initial global design search by the former Labor government. None of the existing submarines offered by European submarine builders were considered large enough or as having the endurance for the long-range patrols required by Australia, which is why the European off-the-shelf option was ruled out by former defence minister Stephen Smith.

Both political parties are committed to assembling submarines at ASC in Adelaide despite ongoing delays and budget overruns on the $8.5 billion air warfare destroyer project. TKMS-owned HDW is the world’s most successful exporter of diesel electric submarines and it has proposed a 4000-tonne Type 216 submarine – a stretched version of its successful Type 214 for the Australian project. TKMS chief executive Hans Christoph Atzpodien told the same conference the Germans could build 12 submarines for Australia for $20 billion rather than the often-mooted price tag of $36 billion, even while using the Adelaide based workforce. However, one should be wary of accepting price promises from defence contractors, given the propensity for delays and cost blowouts on technically complex projects.

The race is clearly on in earnest.



The CVN 68 USS NIMITZ passing the Coastal Inspiration June 18, 2014 @1930 hrs The CVN-68 will be conducting

exercises on Georgia Strait for the coming few days. Photo : Capt. Daniel Kuiper – Master COASTAL INSPIRATION – BC FERRIES ©

Argentine Navy receives refurbished TR1700 class submarine ARA San Juan

The Argentine Navy took re-delivery of TR-1700 class submarine ARA San Juan last month after the boat underwent a mid-life update (MLU) program at the Argentine Naval Industrial Complex CINAR.

According to Minister of Defense Agustin Rossi, the MLU cost some 100 million Argentine Pesos (12.4 million dollars) and comprised more than 500,000 work hours in which the boat was cut in half and had its four MTU engines and batteries replaced. The MLU was under way at CINAR since August 2007. He blamed the delay on the lack of funds and qualified labor. Rossi called the re-delivery an important milestone for Argentina, as

the state had lost its ability to repair submarines following the previous Domecq Garcia shipyards being disbanded. The refurbishing included the torpedo tubes, the hydraulic and electric systems, new navigation equipment, radar and periscope. The TR1700 San Juan has a 2.100 tons displacement and makes 15 knots on surface and 25 knots submerged. It has a 30 days autonomy, six torpedo launchers, can carry 22 torpedoes and carries a crew of 37. With the latest reincorporation the Argentine submarine operational force based in Mar del Plata naval compound has three units, two TR1700, ARA San Juan and ARA Santa Cruz and one U209 ARA Salta. There is still a fourth TR1700 unit ARA Santa Fe, half assembled in Argentina but since the eighties frozen because of lack of funds. The Argentine Navy has plans to convert the ARA Santa Fe into a test nuclear powered submersible by equipping it with an Argentine designed CAREM reactor, but this seems far into the future. In related news it was reported that ARA Santa Cruz which was heading to the CINAR yards run aground close to the port of Buenos Aires when two tugs were pulling it. However a third tug helped rescue the submarine and its 40 member crew and finally arrived to its destination. Source : Mercopress



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Exercise LION MISTRAL 2014 kicks off

The French Assault Ship MISTRAL L9013 arrived in Halifax a couple days ago (16th) and is now headed to visit

Quebec. Photo : René Serrao, Portuguese Cove, NS ©

Ill-fated Submarine reaches Naval Dockyard

Ten months after it sank following an explosion that killed the 18 personnel on board, the Russian-origin Kilo Class submarine INS Sindhurakshak has been brought out of water and rested on a pontoon in the naval dockyards. The Indian arm of US-based M/S Resolve Marine won the contract in January to salvage the submarine, which sank on August 14 last year. A 160-day deadline was set for it to complete the job. The sinking of Sindhurakshak had marked the beginning of a series of mishaps in the Navy last year which ultimately led to resignation of the then Navy chief Admiral D K Joshi in February. Source : Mumbai Mirror

SHIPYARD NEWS

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The PSV named T 219 (Homeported : Singapore) under construction in Batam (Indonesia)


IHC Merwede holds naming ceremony for ITALENI

The South African company Transnet National Ports Authority (TNPA) has named its 750m3 grab hopper dredger, ITALENI, during a special ceremony hosted by the shipbuilder IHC Merwede. The ceremony was performed

on 18 June by TNPA’s Supply Chain General Manager, Ms Ncumisa Nkanunu, in the shipyard of IHC Merwede’s partner, MTG Dolphin, in Varna, Bulgaria. The contract for the design, construction and delivery of the grab hopper dredger was signed between TNPA and IHC Global Production, part of IHC Merwede, on 29 January 2013. The keel was laid on 20 August 2013 and the vessel will sail under her own keel to Durban, South Africa later this month. The ITALENI has been designed and built to achieve low maintenance costs. The vessel will replace the current grab hopper dredger, CRANE, which has recently been equipped with a new grab crane. This equipment will be transferred to the ITALENI after her arrival in South Africa. The ITALENI will be used mainly for maintenance work in various ports throughout the country. The dredger is named after the battle of Italeni that took place near the Itala

Mountains, where the Zulu King Dingane defeated the Voortrekkers in 1838. Tau Morwe, TNPA’s Chief Executive, said: “The new dredger will ensure that we have the capacity to meet demand in line with our strategic objectives, as well as providing spare dredging capacity that we can sell on to neighbouring ports.” Fer Tummers, Managing Director of IHC Merwede’s Dredging Division, said: “The ITALENI is not the first vessel that IHC Merwede has built for TNPA. IHC Merwede has already proven itself to be a reliable and professional partner with the successful delivery of the trailing suction hopper dredger [TSHD] ISANDLWANA in 2010. “We are also proud to be building a third vessel for TNPA, a 5,500m3 TSHD. This will be the largest vessel of its kind to operate in South Africa and a sign of our continuing successful cooperation. “As part of our ongoing commitment to TNPA, IHC Merwede is glad to be participating in economic developments in South Africa by implementing a Supplier Development Plan to help improve local industry. This initiative will include the transfer of some of our knowledge andadvanced technology to enhance the skills of the workforce within the region.”




Rowan Companies contracts Damen Shiprepair Vlissingen for Rowan Viking

conversion Drilling rig to be certified, compliance-checked and extended

Damen Shiprepair Vlissingen (DSV), part of Damen Shiprepair & Conversion, has been awarded the contract by a subsidiary of Rowan Companies plcto remodel the Rowan Viking. The Rowan Viking is a Keppel Fels ‘N’ Class Drilling Rig. The rig, which at 124 (l) x 95 (w) x 170 (h) metres is one of the largest of its type, is active in the North Sea.

The Rowan Viking has been contracted to explore the Norwegian Lundin Oil Field and will have to be converted accordingly. The work will consist of:

- Special Periodic Survey (certification extension) - Acknowledgement of Compliance Scope (safety modifications in accordance with Norwegian law) - Leg Extension Scope (the 170-meter legs will have to be extended to 180 metres to be able to work in the deeper Norwegian waters)

Because the leg extension work will be done at great heights, DSV has contracted Palfinger Systems to use the latter’s unique JUMP Systems. JUMP stands for Jack Up Maintenance Platform. These are platforms that can be built around, and moved up and down, the legs. Mammoet’s largest PTC cranes will be used to hoist the 120-tonne leg extensions. The crane will be more than 200 metres high (nearly four times the height of the covered dock at the shipyard in Vlissingen).

To make room for the crane, DSV has moved its warehouse,

demolishing the warehouse itself and building a special foundation that can handle the high ground pressure of 30 tonnes per m² that the crane will create.

Parallel work The contract is being supervised by Damen Shiprepair & Conversion’s ‘Offshore & Conversion’ task force team. Commercial Manager Bas Loohuis: “This is a unique project. A leg extension of this magnitude has never been done using this method at DSV. Using the Palfinger systems and the Mammoet crane will enable us to carry out other work while the legs are being extended, which will translate into a significant improvement in turnaround time.



This project represents a major step in DSV’s progress. Leaving aside the unique crane foundation, which the company will be able to use for many other projects in future, the shipyard will have to take a big step in its project organisation. Ron Brusket, DSV’s Rowan Viking Project Manager, had this to say about the upcoming step: “This project is our industry’s Champions League. The oil and gas industry is subject to extremely high HSEQ (Health, Safety, Environment and Quality) requirements. This will require us to make significant adjustments to our project organisation. The comprehensive preparations have convinced us that these adjustments will be successful; the new project organisation will serve as the foundation for future major offshore conversions.” The Rowan Viking will be at the shipyard for approximately 130 days. Photo’s : Hans van der Linden www.aerolin.nl @Aerolin Photo ©

Gulf Coast Shipyard Group Launches Florida Marine Transportation’s First 6000

Series Barge FMT New 6000 SERIES ENVIROMENTALLY-FRIENDLY BARGE

Gulf Coast Shipyard Group (GCSG) is proud to announce the launching of “FMT 6000,” the first of FMT’s new 6000 series 6.4 PSI–30,000 barrel ENVIROMENTALLY-FRIENDLY tank barges. The new series continues Florida Marine Transportation’s tradition of having the latest design and most environmentally-friendly equipment operating on America’s waterways. Utilizing proprietary engineering developed for FMT by the engineering group of Guarino & Cox, this series of new barges minimizes vapors escaping into the atmosphere while increasing safety factors when the barge is in operation. To further reduce emissions, all diesel engines mounted on these barges are Tier III/EPA compliant.

The new design achieves 6.4 pounds per square inch (PSI) of pressure and 2.0 pounds per square inch (PSI) of vacuum with minimum loss of cargo capacity, allowing these barges to deliver more product for FMT’s customers than other barges with similar pressure ratings. As with all barges GCSG has built for FMT prior to this delivery, this barge is ice-strengthened in order to minimize damage in harsh winter conditions. Remarkably, FMT’s barges suffered no damage when operating in severe ice conditions this past winter, one of the coldest in recent history. The coating system for all FMT barges was also selected for reduce the release of harmful VOCs (volatile organic components) and is of a higher standard than normally found in the inland industry. FMT also requires painting of voids and other areas which would not normally be painted in order to insure the quality and longevity of their young fleet. FMT insisted that the construction of these barges take place entirely on concrete and under cover to insure that no paint or other contaminates ends up in the soil or streams. Additional spill containments and redundant gauging systems are also incorporated to protect against accidental overflow of product—all in an attempt to protect the environment and the

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safety of the crew. While many of the measures FMT incorporated in the design, construction and operation of this new barge series exceed current federal regulations; it is in keeping with CEO Dennis Pasentine’s vision when he founded FMT 20 years ago to operate in the relentless pursuit of a safe, efficient and environmentally-sound manner.

ROUTE, PORTS & SERVICES

The brandnew SURF SUPPORTER conducting engines / DP Trials just outside Batamec shipyard at Batam Island

(Indonesia) last Tuesday Photo : Piet Sinke © – CLICK on the photo or hyperlink to view the High Resolution version of the photo

GDF SUEZ and Santos to review alternative development concepts to

FLNG for Bonaparte LNG GDF SUEZ, as the operator (60%), and the Australian company Santos (40%) announced today that the Bonaparte LNG project will consider other potential development options in addition to the FLNG concept to develop the Petrel, Tern and Frigate natural gas fields, located 250 kilometres offshore west of Darwin. These options will include a pipeline connection to Darwin, the company said in its press release. While the partners firmly believe the fields have material value, having been fully appraised, their future development using floating LNG technology, although technically robust as demonstrated during extensive pre-FEED studies, does not currently meet companies’ commercial requirements. Consequently, the proposed Bonaparte floating LNG project will not be taken into the front-end-engineering and design (FEED) phase at this point in time. GDF SUEZ is one of the leading LNG players in the world and the main LNG importer in Europe. The Group has a large and diversified portfolio of LNG supplies, representing 16

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MTPA and targeting 20 MTPA by 2020. It operates a fleet of 14 LNG carriers and has a significant presence in regasification terminals around the world. To expand its portfolio of LNG supplies, GDF SUEZ is involved in the development of 2 others liquefaction plants projects: Cameron LNG project in the USA, whose final investment decision is expected this year and Cameroon LNG in Cameroon. Source : PortNews

China sending four oil rigs to South China Sea amid regional tensions

China is sending four oil rigs into the South China Sea in a sign that Beijing is stepping up its exploration for oil and gas in the tense region, less than two months after it positioned a giant drilling platform in waters claimed by Vietnam. Coordinates posted on the website of China's Maritime Safety Administration showed the Nanhai number 2 and 5 rigs would be deployed roughly between southern China and the Pratas islands, which are occupied by Taiwan. The Nanhai 4 rig would be towed close to the Chinese coast. The agency, which did not say who owns the rigs, said all three would be in place by Aug. 12.Earlier this week, it gave coordinates for a fourth rig, the Nanhai 9, which would be positioned just outside Vietnam's exclusive economic zone by Friday. the announcement comes at a time when many countries in Asia, particularly Vietnam and the Philippines, are nervous at China's increasing assertiveness in the South China Sea, where sovereignty over countless islands and reefs is in dispute. The Global Times, a popular tabloid published by the Communist Party's official People's Daily, quoted Zhuang Guotu, director of the Center for Southeast Asian Studies at Xiamen University, as calling the rig deployment a "strategic move". The increase in oil rigs will inevitably jab a sensitive nerve for Vietnam and the Philippines," Zhuang said. China's state oil behemoth CNOOC Ltd has said it had four new projects scheduled to come on stream in the western and eastern South China Sea in the second half of 2014. It was unclear if the four rigs were part of those projects. A CNOOC spokesman declined to comment, but the company has long said that in a bid to boost production it wanted to explore in deeper waters off China. CNOOC has said it would increase by up to a third its annual capital spending for 2014 to almost $20 billion. Anti-Chinese violence flared in Vietnam last month after a $1 billion deepwater rig owned by CNOOC Group, the parent of the listed unit, was parked 240 km (150 miles) off the coast of Vietnam. Hanoi says the rig is in its 200-nautical mile exclusive economic zone and on its continental shelf. China has said the rig was operating completely within its waters.China claims about 90 percent of the potentially energy-rich South China Sea. The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have claims to parts of the waters. Source : Reuters (Reporting by Megha Rajagopalan and Charlie Zhu; Editing by Dean Yates)

Portuguese flag announces strongest growth rate in Europe

Portugal’s second shipping register, the International Shipping Register of Madeira (MAR), is currently the strongest-growing flag in Europe. In the last six months, MAR’s fleet has increased by more than 60 new vessels representing net growth of 130% in terms of tonnage. Among the new entrants to the register are vessels owned by more than 20 of Germany’s leading companies. The remarkable growth has been achieved since Sociedade de Desenvolvimento da Madeira (SDM), the official body responsible for promoting MAR, established a strategic partnership with European Mar Lda (Euromar) in Funchal and Hamburg, run by former Liberian Registry executives Dr Albrecht Gundermann and Captain JörgMolzahn. “MAR’s exceptional growth rate compares most favourably with other European registries and reflects the work and attention to detail the register has undertaken in cooperation with Euromar,” says Roy Garibaldi, Executive Senior Manager at SDM. “Thanks to the political support that is provided to make the register more competitive and to the robust addition of young, high quality vessels flying the Portuguese flag, MAR’s future is extremely positive and the register is firmly on course to move from strength to strength,” Mr Garibaldi adds. The growth achieved over the last six months is also remarkable given that the register was listed temporarily on the Paris MOU Grey List due to problems two years ago. “This was the unfortunate consequence of one insolvent owner suffering six detentions and the company in question no longer operates vessels under the Portuguese flag,” says Mr Garibaldi. The Paris MOU does not display data on the existing quality of ships flying the Portuguese flag and without the six incidents MAR would not have been statistically downgraded. MAR responded urgently to the temporary listing by immediately instituting policies thoroughly evaluating tonnage before registration and performing highly detailed pre-inspections on vessels older than 15 years seeking to join the register. “Registers with a small fleet are more in danger



of suffering a statistical downgrade, as shown by the way that a single company affected us,” says Mr Garibaldi. “The most effective remedy to this is the strong growth which MAR has achieved recently and it is only a matter of a short period of time before MAR is restored to the Paris MOU White List, where it has been for many years.” Significantly, the temporary listing has had no effect on Portuguese flag ships because international Port State Control (PSC) regimes have rules and practices in such circumstances which do not differentiate between White and Grey-listed flags. “And owners operating under other European Union flags who have been targeted by US Coast Guard in previous years and ships flying other EU flags which have been on the Tokyo MOU Grey List have also confirmed that there are no practical disadvantages from such temporary statistical evaluation,” says Mr Garibaldi. “Clearly, it was daunting and most challenging to be listed temporarily by the Paris MOU because of one single owner. But MAR faced the consequences and took immediate and the necessary actions and clearly the measures will be paying off.” Further strong growth is expected over the course of the next few years, coming mostly from German owners but also from Greece, France and Norway. The registry will soon start offering broad services online to match the growing demand.

ETPL gets LNG terminal licence The Oil and Gas Regulatory Authority (Ogra) has granted a licence to Elengy Terminal Pakistan Limited (ETPL) for constructing a liquefied natural gas (LNG) re-gasification terminal that will handle gas supplies expected to start arriving next year. In a statement issued here on Wednesday, Ogra said it issued the licence after ETPL met all requirements of the LNG policy and rules. The company had filed an application with Ogra, seeking licence for building an LNG receiving and re-gasification facility at the Port Qasim. Before awarding the licence, Ogra said it examined the application under its rules and also got it evaluated by an internationally reputed independent consultant, SGS. The consultant, in its evaluation report, agreed that ETPL’s application was in compliance with Ogra’s LNG Rules 2007 and the federal government’s LNG Policy 2011. Necessary no-objection certificate from the Ministry of Defence and approval of the Port Qasim Authority have also been submitted by the project developer. Ogra conducted a public hearing on the matter and concerns of stakeholders were also taken care of before the grant of licence. Keeping in view the fulfillment of technical and legal requirements by ETPL and gas shortage in the country that demanded fast-track import of LNG, Ogra said it granted the licence to ETPL for construction of the terminal. “This decision will help ease energy crisis in the country,” it added. According to officials of the Ministry of Petroleum and Natural Resources, ETPL and Sui Southern Gas Company had already signed an LNG services agreement following approval of the Economic Coordination Committee and cabinet. After coming to power in June last year, the PML-N government had approached Qatar for LNG import but Doha asked Islamabad to first set up a terminal for handling supplies. ETPL, a subsidiary of Engro Corporation, is bound to set up the terminal in 11 months since the award of contract. Officials believe the establishment of the terminal will open a new market of LNG, which will replace furnace oil consumption in power plants. “LNG will not only be cheaper, it will also lead to clean energy in Pakistan,” an official remarked. Source : The Express Tribune

Asia Tankers-VLCC rates to firm on July fixtures but little Iraq impact

By Keith Wallis Rates for very large crude carriers (VLCCs) on key Asian freight routes could firm next week as charterers roll out their July fixture programme although the large volume of available tonnage could cap a substantial rate rise, brokers said on Friday. Any disruption of supplies caused by the crisis in Iraq would have limited impact on the dirty tanker market because the number of charters is already down compared with the beginning of this year, they said. "The market is firm and increasing a little bit," said a Singapore VLCC broker.Rates for a voyage from the Middle East to Japan were around W37 on Friday. "Very soon we'll see W39 and W41 is just around the corner," the broker said. A jump from W37 to W41 would represent an increase in earnings of $10,000 a day for owners, according to Reuters freight data. A rise to W41 would put Middle East-Japan rates at their highest level since April 14."The market has been pretty uninspiring but it's coming to life," said Kevin Sy, freight derivatives broker at Singapore's Marex Spectron. Charterers have made offers to charter 12 VLCCs in the first 10 days of July which are now being considered by the ship's operators, Sy said. Around 115-120 VLCC ship charters are expected for July compared with around 107 for June, brokers said. Any disruption to Iraq oil supplies would only have a modest impact on the tanker market, with a possible increase in vessel chartering in July or August, brokers said. Iraqi government forces battled Sunni militants



for control of the 300,000 barrels per day (bpd) Baiji refinery, the country's biggest, on Thursday. Output at Iraq's southern oilfields, which produce most of Iraq's 3.3 million per day (bpd) of oil, is unaffected for now.Possible disruption would lead to no more than 10-15 extra charters, against a total of around 107-120 charters a month since March."We have not seen a full month of 135-140 charters since December-January and the market can take that level," the Singapore broker said. "I'm still trying to see if the sudden increase in fixing (charters this week) is due to Iraq and charterers deciding to fix earlier," Sy said. Rates for a VLCC voyage on the benchmark route from the Middle East to Japan was flat at W37.5 on Thursday, the same level a week earlier, although up 5 Worldscale points since early June. Rates for West Africa to China rose to W42 on Thursday, against 40.8 last week, following a flurry of fixtures on Thursday. In other trades, rates for 80,000-tonne aframax tankers from Southeast Asia to East Coast Australia climbed to W99, the highest since February 5, and up from W90 last week amid a shortage of available tonnage. Clean tanker rates from Singapore to Japan held steady at W110 as cargo demand and vessel available remained in balance, one clean tanker broker said. But rates could soften towards W105-107.5, Norwegian broker Fearnley said in a note on Wednesday. Source : Reuters (Editing by Muralikumar Anantharaman)

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