1. business and industrial
2. energy
3. natural gas

(16-31 December 2014)
Volume: 03 Issue No: 01
01
New Chapter of Pak-China Friendship
opened: Mamnoon.............................. 01
Ties Triumph: Pakistan, Russia ink $1.7b
Energy Deal........................................ 02
Senate Panel to review Progress of
Gwadar Port ....................................... 03
National Shipping Entity seeks Business
with TCP............................................. 03
Pakistan Navy strengthens its Relations
with Oman .......................................... 04
05
U.S. Agency Considers Exports of Oil,
Gas from Deepwater Ports.................. 05
The Ripple Effect of the Panama Canal's
Expansion on West African Ports........ 05
Tanker Markets see Storage Boon from Oil
Price Collapse ...................................... 06
11
After Coal, India Now Urgently needs to
Sort out Its Iron Ore Sector...........11
Asian Persian Gulf Storage deals
Continue Amid Global Oil Glut............. 12
13
Kenya Maritime Authority wants Liners to
Drop Piracy Charges ......................... 13
Indigenous Nuclear Powered Submarine
INS ARIHANT to Head out for Sea Trial........ 15
The Philippines wants Submarines to
Deter China........................................ 15
After Mauritius, India to Export Warships
to Sri Lanka......................................... 17
21
Shipping Industry Modifies Clauses in
Contracts for Ebola Risks ................... 21
EU Backs Maritime Sec urity
Action Plan ........................................ 22
23
New Environmental Law to Affect China's
Steel Industry.................................... 23
IMO Applauds ICS Changing Stance on
Ballast Water.................................. 23
Maritime News of Pakistan
in understanding President Xi Jinping‘s vision for China,
the launch of a book compiled of the President‘s important
speeches, remarks and policy pronouncements could not be
more timelier. The President said that Pakistan and China
have always enjoyed close and cordial relations, adding
that over the decades the relationship between the two
countries has grown into a strategic partnership that has
benefited both nations on the diplomatic, economy and
military spheres. The warmth in bilateral ties at the
government-to-government level is equally matched by
cordial relations and cooperation between the Communist
Party of China (CPC) and all major political parties of
Pakistan, added the President. The CPC Secretary General
and Chinese President Xi Jinping has coined the term,
“Iron Brothers”, for Pakistan-China friendship, further
stated the President. “The people of Pakistan and China
have stood shoulder to shoulder through every trial and
tribulation. We cherish the same ideals: freedom, dignity,
and the right to peaceful pursuit of development. We are
truly “Iron Brothers”, concluded the President.
The ceremony was attended, among others, by Vice
Minister of the International Department of the
Communist Party of China Mr. Chen Fengxiang,
Ambassador of China in Pakistan Sun Weidong, Chairman
Pakistan-China Institute Senator Mushahid Hussain Sayed
and senior dignitaries from the governments of both
countries along with intelligentsia.
From Editor’s Desk
2014 was a typical year in Pakistan‘s maritime sector.
No new projects came on line. The growth in maritime
trade was satisfactory but not exceptional. The ports
operated normally. PNSC made profit.
A tanker
SHALAMAR was acquired and the old bulker
KAHGHAN was sold. So all PNSC Fleet is now less than
13 years old.
2015 is likely to be more exciting in the Pakistani
maritime sector. Long awaited LNG terminal will
become operational at PQA. The Deep Water Port at
Karachi will be ready. Most importantly, Gwadar Port
will see lot of activity. 2015 may become the year when
Gwadar port starts racing towards its long awaited take
off. However, we will continue to see matching
developments in our neighbourhood in Oman, India and
Sri Lanka. Therefore, ports and shipping in Pakistan
will have to remain efficient and modern to make a
mark.
Asaf Humayun
New Chapter of Pak-China Friendship opened:
Mamnoon
Three KPT Berths being revamped
Source: The Nation
20th December 2014
Source: Dawn
21st December 2014
ISLAMABAD: President Mamnoon Hussain has said that
the leadership transitions in Pakistan and China last year
have opened a new chapter of cooperation between the two
friendly countries. The President was addressing the
launching ceremony of Chinese President Xi Jinping‘s book
titled; “The Governance of China”, organised by the
Pakistan-China Institute in collaboration with Embassy of
the People‘s Republic of China here at Pak-China
Friendship Centre.
The President said that both countries have further
reaffirmed their strategic partnership by putting economic
partnership at the centre of their bilateral agenda. The
President said that both countries have made further
strides in the new chapter of bilateral collaboration
particularly on economic front as was evident from the
recent fruitful visit of Prime Minister Mian Muhammad
Nawaz Sharif to China, which saw the conclusion of 19
MoUs relating to energy, infrastructure and other projects.
The President stated that the China-Pakistan Economic
Corridor (EPEC) is the flagship project for this new phase
of relationship adding that by linking the Gwadar Port via
the Karakoram Highway with Xinjiang, the CPEC will be a
transformational project for the economies of both
countries.
Talking about the book of Chinese President, the
President said that given the keen and widespread interest
ISLAMABAD: The rehabilitation of three berths at the
Karachi Port being undertaken with World Bank assistance
is nearing completion and will be handed over to the
Karachi Port Trust in the coming weeks.
According to a World Bank report, the berths 15 to 17
were non-operational and were incapable of handling
larger ships normally used for the high volume bulks. Eight
of the 20 general purpose berths – 10 to 17A – required to
be reconstructed in order to reduce the costs of ship
waiting time from high levels. The three berths (15–17)
constitute half of the project scope, and KPT will soon be
operationalizing these berths, report says. The project, for
which the World Bank had approved the financing of
$115.8 million, is aimed at to replace the lost port capacity
and reduce shipping costs to the national economy through
the reconstruction of the failed berths and increasing the
effectiveness and efficiency of port operations and
enhancing environmental sustainability. The report says
that the project is behind its completion schedule as the
actual versus planned progress of civil works has slipped by
18pc. Some changes to the design has increased the
quantum of work, and this change in design as well as
other unforeseen reasons caused delay in completion of the
project by seven to nine months. The project was expected
to be completed early this year. There was a delay in
1
delivery of steel casings by Pakistan Steel Mills (PSM), and
also an unforeseen obstructions in seabed, frequent strikes
in Karachi, some delays associated with design changes,
and handing over some portion of sites.
Berths 5-17 were constructed during 1955-1960 under a
World Bank financed project while berths 5-9 were
reconstructed in the late 1990s and four of those berths
were subsequently concessioned to a private container
terminal operator, Pakistan International Container
Terminal.
Ties Triumph: Pakistan, Russia ink $1.7b Energy
Deal
likely to link with Gwadar LNG pipeline in future to pump
gas from Iran and also LNG supply through a terminal to
be set up at Gwadar. Officials said that Pakistan had almost
done a deal with China to lay Gwadar LNG pipeline which
would be connected to Iran and south LNG pipeline from
Karachi to Lahore had been offered to Russia. The
government of Pakistan was keen to award contract of
south LNG pipeline to Russia on government to
government basis which would create competition with
China. “The presence of two countries [Russia and China]
in energy sector would open new avenues for attracting
more investment,” sources maintained.
Gwadar Port: Plans Ready for Development
Source: The Express Tribune
23rd December 2014
ISLAMABAD: Pakistan and Russia signed a most soughtafter energy deal of $1.7 billion for laying a liquefied
natural gas (LNG) pipeline from Karachi to Lahore. The
supply of LNG is expected before March next year. It is for
the first time Islamabad and Moscow have signed an
energy pact decades after their defence deal.
The energy agreement was signed during the visit of the
Russian defence minister. Moreover, Islamabad and
Moscow also signed a defence and military cooperation
deal, a move seen by economic experts as ushering in a
gradual improvement in ties between the two countries.
Before Gen Ziaul Haq‘s military regime, Russia had helped
Pakistan set up the Karachi Steel Mills and also supported
the Oil and Gas Development Company Limited, which is
still using old Russian machinery in exploring oil and gas.
Pakistan is currently working on two LNG pipelines as
an alternative to the apparently doomed Iran-Pakistan (IP)
gas pipeline project, which included LNG Gwadar pipeline
and south pipeline from Karachi to Lahore. The
government has signed a deal with China to award $3
billion Gwadar LNG pipeline and terminal project.
Earlier, Pakistan had offered China and Russia to lay IP
gas pipeline but both the countries had backed out due to
sanctions imposed against Iran. “However, the government
has offered Moscow to sign a deal on government to
government basis of $1.7 billion for laying LNG pipeline
from Karachi to Lahore during the recent meeting of PakRussia Joint Ministerial Commission following a defence
deal between the two countries,” sources said.
There was a good development between Islamabad and
Moscow in the JC meeting to enhance bilateral energy
cooperation, the sources maintained. Officials pointed out
that the pipeline would be used to transport imported LNG
from Karachi to Punjab, adding that LNG terminal was in
progress and first supply of LNG was expected before
March next year. At present, existing pipeline network has
capacity of transporting 320 million cubic feet of gas per
day (mmcfd) LNG and therefore the government was going
to set up additional LNG pipeline. The regulator Oil and
Gas Regulatory Authority (OGRA) has already allowed gas
utilities Sui Northern Gas Pipeline Limited (SNGPL) and
Sui Southern Gas Company (SSGC) to generate funds from
gas consumers to set up LNG pipeline.
SNGPL has planned to invest $750 million and SSGC
$300 million to set up LNG pipeline. This pipeline was also
Source: Business Recorder
24th December 2014
Short-, medium- and long-term plans for development
of Gwadar port have been prepared by Arthur D Little for
business logistics, coal power plants and construction of
commercial centres serving Pakistan, western China, Iran,
Afghanistan and Middle Asia, gradually making
transforming it into a transhipment hub.
According to final draft of Operation Planning for
Gwadar Port prepared by China Overseas Ports Holding
Company Limited November, 2014, in short-term plan,
seawater desalination and a power plant would be
improved by the government and warehouses of
10000~20000 m2 in Free Zone (FZ) would be constructed.
Service for business logistics and coal power plants
ensuring the port‘s adaptability and service for different
cargoes were also included in short-term plan.
Due to lack of utilities, the main task is to create cargo
volume by commercial logistics and explore fishery cargo
through introduction of aquaculture, based on the
advantage of local resource. In future plan, it is also
expected to realise the cargo volume generated by harbour
industry under the implementation of Gwadar city and port
planning. Gwadar would get more opportunity and benefit
from China-Pakistan Economic Corridor (CPEC) and
energy co-operation between Pakistan and Iran. A logistics
corridor of "Gwadar-Quetta-Kandahar" would also be
constructed by the government along with developing
transit trade with inland states. In mid-term plan, Gwadar
would be developed as one of the transfer and distribution
areas of commercial logistics of Fast Moving Consumer
Goods (FMCG) serving for Pakistan, Iran, and Afghanistan
by taking full advantage of the position and policies. It is
also planned to start the processing of manufacturing
industry in FZ and integration of FZ and implementation of
expanding the quay facility at proper time depending on
the need of local economic development. In future under
master plan of the Port, industrial parks would be
developed behind the port area. Textile, leather, food and
trade processing would develop as priority industries in FZ,
considering the industry characteristics and labour
advantages in Pakistan. Fertiliser is the only cargo
unloaded at Gwadar Port currently. The federal
government would improve the existing fertiliser volume
till the time Gwadar Port could realise a commercial
operation. After the fishery industry in Gwadar region
develops to a certain scale, it can directly bring the port
freight sources. The freight potential of fishery industry for
Gwadar Port is estimated to be 350 - 500 kilo tons per year.
In the long-term plan, commercial centers would serve
Pakistan, western China, Iran, Afghanistan and Middle
Asia gradually, exploring the possibility of becoming an
important transhipment hub and distribution centers
between Northeast Asia to Africa and the Gulf. Meanwhile,
the implementation of "Developing Gwadar as Green &
Smart Port City should be followed with the effort of
Pakistan government. Gwadar Port, which is a core facility
support for the city, would develop as an integrated
ecological port and essential part of costal industrial
''corridor in Pakistan''.
silos at the Gwadar port. The GPA and Chinese Overseas
Port Holding Companies (COPHC), in principle, have
consented to this proposal.
Senate Panel to review Progress of Gwadar Port
Source: The express Tribune
22nd December 2014
ISLAMABAD: As the competition for new ports in the
Arabian Sea stiffens, the Gwadar Port Authority (GPA) is
set to brief the Senate standing committee on ports and
shipping on how it is shaping up to serve as an important
port of call for trade and industry.
The GPA will brief the panel on the progress made so
far on the construction activity and its connectivity to main
highways and cities of the country. The GPA has been
facing difficulties in acquiring land for connecting the port
with the main highways, according to sources. However,
GPA‘s Managing Director Dostain Khan Jamaldini has
revealed that the authority has acquired over 32,000 acres
of adjacent land from various parties, including Pakistan
Navy, Balochistan government, Pakistan Coast Guards and
private owners. “We have purchased the land but
formalities are left for acquiring possession from some
parties,” said Jamaldini. Sources said that private land
mafia, supported by influential personalities, had
purchased land in the surroundings of the port in Gwadar
at throwaway prices when the government had announced
construction of Gwadar port. They added that these
landowners now wanted to sell this land back to the
government at inflated prices.
Jamaldini said the government has asked Chinese port
builders to complete construction by June 30, 2015. “I‘m
optimistic that they will meet the deadline and the port will
be fully operational,” he added. Additionally, the ports and
shipping committee will be briefed by the Ministry of Port
and Shipping about province-wise appointments in the
ministry and the National Shipping Corporation over the
last 10 years. The Karachi Port Trust will also brief the
committee about the appointments with province-wise
breakdown. At an earlier meeting, most of the committee
members had expressed their reservations over the
appointments in the Ministry of Ports and Shipping
without following the province-wise quota and merit.
Senators from Balochistan raised key questions about the
lack of appointments in the ministry from their province,
where the country‘s largest port is being developed.
Strategic Location: Foreign Investors flocking to
Gwadar Port
Source: The Express Tribune
28th December 2014
ISLAMABAD: The Gwadar deep seaport has been a place
of interest for national and foreign investors, particularly
from China and Central Asian states, in the outgoing year.
In 2014, four high-level delegations of private investors
and three government delegations from China have visited
the strategically located port, according to documents
available with The Express Tribune. Gwadar port is
situated at the mouth of the Persian Gulf, just outside the
Strait of Hormuz, near the key shipping routes for twothirds of the world oil supply.
According to details, China‘s vice-premier led a team of
senior Chinese officials, including the director general of
the National Development and Reforms Commission and
infrastructure experts, for chalking out plans for the ChinaPakistan Economic Corridor and infrastructure projects for
Gwadar. A team from the Guangdong Logistics Industry
Association (GLIA), led by its secretary general, visited the
Gwadar port and apprised the Gwadar Port Authority
(GPA) that they were interested in opening a display of
more than 50,000 Chinese products at the port. The
proposed display centre will be established on 25 acres of
land. The proposal is currently being negotiated between
the GPA and GLIA, who have agreed in principle to
consider this unique trade and commerce initiative at the
port. The team leader also apprised the GPA of establishing
a marine silk route between Guandong and Gwadar via sea.
Another delegation of senior Chinese officials visited
Gwadar with an offer of setting up a steel mill.
The director of the National Development and Reform
Commission, Hebi province, and the mayor of Wuhan city
led a team of the Investment and Commerce Bank of China
(ICBC) and iron and steel investors with an interest to
construct a steel mill in Gwadar. The ICBC has sent two
missions to Gwadar with the last one in October. The
Chinese investors have now agreed on the proposed site for
the steel mill in the Gwadar industrial zone operated by the
Balochistan government. The Chinese investors are also
exploring different businesses in the Gwadar port duty-free
zone. During the year, the Kazakhstan Chamber of
Commerce and Industry, through Pakistan‘s foreign
ministry, expressed their interest to set up wheat grain
National Shipping Entity seeks Business with TCP
Source: The express Tribune
24th December 2014
ISLAMABAD: Pakistan National Shipping Corporation
(PNSC) has sought assistance of the government to ask the
Trading Corporation of Pakistan (TCP) to employ their
services over the foreign ones so that they could expand
their business along with saving money for the national
exchequer. PNSC Chairman Muhammad Siddique Memon
stated this at the meeting of Senate Standing Committee on
Ports and Shipping, where he sought the help of the
3
standing committee to recommend the government for
asking the TCP to sign a contract with the national
shipping company. Siddiqi opined that PNSC is currently
lifting Pakistan State Oil (PSO)‘s petroleum and it helped
saving $78 million annually by paying fare in Pakistani
rupees rather than dollars to any foreign company. He said
TCP would also be able to save up to $10 million annually if
it gives its business to the PNSC and pay the fare in the
local currency. The committee decided to recommend the
government to ask its various departments to use PNSC
services particularly the TCP.
removed very soon. With the removal of restrictions, Iran‘s
trade volume and economic relations with its neighbours
would improve further, he hoped. Iran has great potential
to export petro-chemicals, electricity and fertilisers and
asked Pakistan to capitalise on the opportunities available
in its neighbourhood. However, Pakistan insists that
Iranian negotiators should seek special exemption for the
project from the sanctions while reaching a nuclear deal
with the US and other world powers. Abbasi suggested that
the international embargo on Iran had prevented Pakistan
from pushing ahead with the pipeline project on its
territory. Despite the best efforts, he said, international
contractors and equipment suppliers were not willing to be
part of the scheme. He said the government was now
planning to complete the project in two phases – first, a
liquefied natural gas (LNG) terminal would be built at the
Gwadar Port and then a 42-inch pipeline spread over 700
kilometres would be laid from Gwadar to Nawabshah for
onward transmission of gas to northern parts of the
country.
Gwadar Port
While briefing the committee, chairman Gwadar Port
Authority (GPA) Dostain Khan Jamaldini said that Chinese
Overseas Ports Holding Corporation (Ltd) has mobilised its
initial team to the port and it would be partially operational
till June 30, 2015. He said prime minister has approved
Pakistan Navy‘s 584 acres of lands to GPA for further
transfer to COPHC for establishment of Gwadar Port Free
Zone. He said that ministry of defence and Pakistan Navy
are processing the case to hand over the land to the GPA.
Moreover, chairman of the committee raised concern
that Chinese government does not want to allow any other
country to invest in the port except its own companies and
the Chinese loans also directly go in the accounts of these
companies rather in the government of Pakistan‘s account.
Pakistan Navy strengthens its Relations with Oman
Source: timesofoman
25th December 2014
Strong ties between Oman and Pakistan were
highlighted at a reception held to welcome the Pakistani
Navy frigate, PNS ASLAT, which docked at the Sultan
Qaboos Port recently. "We underwent a series of bilateral
exercises with the Royal Navy of Oman in conducting antipiracy operations and other aspects," said Commanding
Officer of PNS ASLAT. The exercises covered the regions of
the Sea of Oman, the Gulf of Aden and the Indian Ocean.
Captain Jamal Alam said that the strong relationship
between Pakistan and the Sultanate was based on "respect,
loyalty and trust." "We aim to promote peace in the region.
The ties between Pakistan Navy and Royal Navy of Oman
have strengthened over the years and have now become
strong," said Captain Jamal Alam, captain of PNS ASLAT.
"We have benefited from training and sharing of strategies
with the Royal Navy of Oman," he added. Pakistani
Ambassador Ayaz Hussain also commented, "Oman and
Pakistan have a very old and strong relationship."
PNS ASLAT is a F-22P or ZULFIQUAR (Sword)-class
frigate used for deployment to carry out anti-piracy
operations and to counter terrorists' missions. The frigate
is the fourth of its kind to be indigenously built by Karachi
Shipyard and Engineering Works Limited whereas its
predecessors PNS ZULFIQUAR, the leading ship,
PNS SHAMSHEER and PNS SAIF were built by China.
With a speed of up to 30 knots (55 kilometres per hour)
and armed with the latest state of the art weaponry and
sensors, PNS ASLAT is a formidable force at sea and highly
capable of operating under multiple threat environments.
PNS ASLAT carries over 150 crewmembers and is armed
with C-802 anti-ship missiles, FM-90 surface-to-air
missiles, AK-176M main gun, Type 730B CIWS, ET-52C
torpedo launchers and RDC-32 ASW rockets. This makes it
an ideal ship to be inducted with the Tariq-class destroyers
to use its capabilities to further strengthen and defend the
sea frontiers.
Iran asks Pakistan to hire Third Party for
Payments
Source: The Express Tribune
30th December 2014
ISLAMABAD: Iran has suggested that Pakistan should
hire a third party for making payments for energy supplies
to the Middle Eastern country as international banks are
reluctant to process transactions due to economic sanctions
slapped by the United States and the European Union.
Iran has come up with a revised agreement on a gas
pipeline project between the two countries, proposing that
Pakistan should engage a third party to pay for gas to be
transported from Iran‘s South Pars field, sources say.
Iranian Minister of Economic Affairs and Finance Dr Ali
Taieb Nia took up the proposal when he met Petroleum and
Natural Resources Minister Shahid Khaqan Abbasi on
December 8 in Islamabad. “An Iranian team is expected to
pay a visit to Pakistan soon to finalise the alternative plan
for the pipeline project and the proposal for payments via
third party,” an official said.
Nia stressed the importance of brotherly relations with
Pakistan and pointed out that people of the two countries
had the same religion and culture. “No country could create
hurdles in the way of forging better ties and we will
continue to enjoy the same relations,” he said. Iran has
already completed its part of the pipeline and expects
Pakistan to meet the commitment and finish work in its
territory swiftly. Nia expressed the desire that gas flow to
Pakistan should start soon so that the South Asian country
could be able to tackle the energy shortfall. Discussing the
negotiations over the nuclear programme, the Iranian
minister told Abbasi that talks with the international
community had been successful and sanctions would be
4
Ports & Shipping
DP World inaugurates World's Largest Cruise
Terminal
capacity of about 14000 TEUs. It is a possibility that the
expansion and subsequent operation of the Panama Canal
could influence the size of vessels that would call at West
African ports hence it is no surprise that West African ports
and for that matter Tema port has joined other global ports
to embark on major expansion and renovation works as
evidenced from the various port developments projects
across the sub region.
Source: asiacruisenews
16th December 2014
DUBAI: DP World‘s third cruise terminal in Dubai has
been inaugurated by Crown Prince of Dubai, Sheikh
Hamdan bin Mohammed bin Rashid Al Maktoum. The
Hamdan bin Mohammed Cruise Terminal is set to be the
world‘s largest cruise facility, capable of welcoming 14,000
cruise passengers a day and is built eco-friendly from 75%
recycled materials. The new facility will increase the
handling capacity of the three cruise terminals in Dubai
from two million tourists a year to seven million. The
terminal enables Mina Rashid to serve up to seven cruise
vessels at one time and more than 25,000 passengers
across its three terminals. Dubai aims to attract 20m
tourists a year by 2020, developing the city to be a leading
tourist destination.
UASC ‘Cooperating’ with Local Authorities over
Suez Smash, Ship Named
Source: Gulfshipnews
18th December 2014
CAIRO: The containership involved in Sunday‘s tragic
collision with a fishing vessel on the Suez Canal was the
6,921-teu vessel Al SAFAT, operated by United Arab
Shipping Co (UASC), sources have confirmed to Gulf Ship
News. A spokesperson for UASC told Gulf Ship News: "It
has been reported that one of UASC‘s container vessels
may have collided with an Egyptian fishing vessel in the
Red Sea. Our team is currently cooperating with the
Egyptian authorities who are investigating the matter.” The
containership was moored at the port of Sagafa as local
authorities conducted investigations into the accident.
U.S. Agency Considers Exports of Oil, Gas from
Deepwater Ports
Source: Reuters
16th December 2014
A U.S. agency is considering how the country could
export crude oil and natural gas from deepwater ports as
the domestic drilling boom adds pressure for Washington
to relax trade restrictions and approve shipments of fuel.
The U.S. Maritime Administration, or MARAD, is
seeking comment on a proposed policy to evaluate
applications for building and operating offshore deepwater
ports for exporting U.S. oil and natural gas. Senator Lisa
Murkowski, a Republican from Alaska and the incoming
chairman of her chamber‘s Energy and Natural Resources
Committee, sent a letter to the director of MARAD,
expressing support for the agency‘s efforts to prepare for
future exports of oil and gas from deep-water ports.
Let Indian Lines Carry More Oil Cargo
Source: Hindu Business Line
17th December 2014
By admitting that he knew very little about shipping
business, Minister Nitin Gadkari has put the ball in the
ship-owners‘ court. At the Inmarco-2014 dinner meet last
week in Mumbai, Gadkari confessed that unlike in the case
of construction of roads, highways and flyovers where he
has first-hand experience, he is new to shipbuilding and
shipping. He wondered why Indian vessels carry only eight
per cent of the country‘s own international cargo. Why
local shipyard account for only one per cent of the ships
built globally? Why domestic shipping companies earning
in dollars are finding it hard to raise foreign currency loans
to buy ships?
However, the Minister was clear about one thing –
which the maritime sector has been neglected for long, and
it has a lot of growth potential. Now, the onus is on the
captains of the industry to educate the Minister and get
their problems resolved. All players in the sector–be it
ship-owner, shipper, shipbuilder or port operator – have
one common grievance – apathy on the part of the
policymakers; and they are not wrong. As the Minister
pointed out, the previous regime in New Delhi did precious
little for the development of the sector. Maritime sector is
probably the best example of how unfinished sectoral
reforms hurt the industry‘s growth.
However, it is ironical that even the present regime has
done little so far to win the industry‘s confidence. The gap
The Ripple Effect of the Panama Canal’s Expansion
on West African Ports
Source: ghanashippingguide
16th December 2014
One very important and strategic trade route in the
shipping industry is the Panama Canal, which provides the
shortest possible sea link between the Pacific and the
Atlantic oceans. It also conveniently and economically
provides the shortest sea route from the east coast of
America to the west coast. The expansion works which
began couple of years ago would involve the creation of
new set of locks at both ends of the canal (Atlantic and
Pacific), as well as the widening and deepening of the
navigational channels. The project which is expected to be
completed by late 2015 would enable the canal admit
vessels pulling up to 18 meters draft and with a cargo
5
between talk and action is widening. As the Minister
pleaded, he may need more time to learn; but surely, he
can begin with what he has already learnt: to help arrest
the shrinking cargo share of Indian flag-carriers. Here is a
golden opportunity. Oil and petroleum products account
for close to 40 per cent of the country‘s sea-borne cargo.
Currently domestic ships carry only about 14 per cent of the
oil cargo, far below the 66 per cent a couple of decades ago.
India imports nearly 85 per cent of its oil requirements and
the volume has been expanding every year; and with it the
freight outgo.
mark is our target for 2015 and it will certainly create
another great milestone for PTP," Mr Glen said. "We are
confident with strong organic growth from PTP's existing
customers as well as volume from new customers will
eventually increase our container volume over the next
three to five years and thus enabling the port to continue
becoming the catalyst to economic and social benefits to
Johor state and the Iskandar Malaysia region," he said.
Strike Spreads through Nigerian Ports
Source: World Maritime News
18th December 2014
Tanker Markets see Storage Boon from Oil Price
Collapse
Maritime Workers Union of Nigeria (MWUN) is
planning to shut the nation‘s ports‘ operations and start an
indefinite strike today over lingering disputes with the
government, according to Gulf Agency Company (GAC).
Last weekend the union notified the relevant authorities –
such as the Nigerian Ports Authority (NPA), the Nigerian
Administration and Safety Agency (NIMASA) and terminal
operators – of the intention to shut down the ports, if the
latest ultimatum given to the government to address the
pending issues passed without any action by December 15.
The long-standing issues behind the industrial action
include tally clerks/on-board security, minimum standard
for dockworkers, as well as NPA staff welfare matters. The
Nigerian government earlier decided to discontinue the use
of tally clerks/on-board security, which MWUN sees as a
threat to ports‘ operations and national security.
Source: Reuters
18th December 2014
The oil price drop will hand tanker markets an
unexpected bonus next year, boosting demand for oil
storage at sea while distant eastern markets also bargainhunt fuel and need shipping. Super tanker rates are already
close to five-year highs of over $83,000 a day - helped by a
drop in shipping fuel bunker prices. Overcapacity, which
has dogged owners for years, is also receding.
Herbjorn Hansson, chairman and chief executive of
Nordic American Tankers, told shareholders recently that
lower oil prices "may trigger stockpiling or have a more
general positive impact". "We see a clear increase in
demand, especially from the East, and the oil is also carried
over longer distances. There are very few idle ships out
there now and the market is much tighter," he told Reuters.
Average earnings are still some off the over $120,000 a day
seen before the 2008 slump in trade. So far this year, oil
held at sea has been no more than a few tankers as the
discount for the front month of crude futures has been
insufficient to finance chartering.
Nicaragua Building China-led Canal to Rival
Panama
Source: Marinelink
25th December 2014
Nicaragua broke ground on its Chinese-led $50 billion
shipping canal, a massive infrastructure project that aims
to rival Panama's waterway and revitalize the economy of
the second-poorest country in the Americas.
Nicaragua's government says the proposed 172-mile
(278-km) canal, due to be operational by around 2020,
would raise annual growth to over 10 percent and help put
an end to endemic poverty in the country of 6 million
people. It could also give China a major foothold in Central
America, a region that for years has been dominated by the
United States, which completed the Panama Canal a
century ago. Construction of the new waterway will be run
by Hong Kong-based HK Nicaragua Canal Development
Investment Co Ltd (HKND Group), which is controlled by
Wang Jing, a little-known Chinese telecom mogul well
connected to China's political elite.
Port of Tanjung Pelepas hits 8 Million TEU Mark and Year is not over yet
Source: Asian Shipper
18th December 2014
MALAYSIA's Port of Tanjung Pelepas (PTP) has hit a
record eight million TEU mark this year and expects
surpass 8.6 million TEU by the end of the year, says port
CEO Glen Hilton. "Passing this latest milestone further
underlines our position as the leading container terminal in
Malaysia," he said. "We certainly could not have done this
without the commitment and the dedication of our staff to
provide fast and efficient service over the years. We are also
thankful to the government and local authorities,
customers and all of our stakeholders for their continuous
support," said Mr Glen. PTP has experienced steady growth
since the port opened 15 years ago, when it first moved
400,000 TEU in 2000. "The completion of our berth 13
and 14 in the second quarter of this year complete with new
advanced equipment has increased PTP's capacity to 12.5
million TEU a year. We are expecting the container market
to grow primarily on the back of global shipping access
hence utilising our port capacity. "Hitting nine million TEU
IPC, Mitsui, NYK Line & PSA to jointly develop
New Container Terminal in Jakarta
Source: MEF
19th December 2014
Pelabuhan Indonesia II, Mitsui & Co, Ltd. Nippon
Yusen Kabushiki Kaisha (”NYK Line”) and PSA
6
International Pte Ltd have agreed to jointly participate in
the construction and operation of a new container terminal
at Tanjung PriokPort, Jakarta, Indonesia. This new
terminal will be developed and operated by the newly
established project company PT New Priok Container
Terminal One. The Republic of Indonesia has in recent
years
experienced,
dramatic
economic
growth
accompanied by a rapid increase in container traffic.
Jakarta‘s Tanjung Priok Port is the most important and
largest port in Indonesia, handling the majority of
Indonesia‘s international container traffic. To support the
vibrant trade, there is an immediate need to increase the
port capacity and handling capability. The new terminal
will have an annual handling capacity of approximately 1.5
million twenty-foot equivalent units (”TEU’s) of
containers, an overall berth length of 850 metres, and a 16metre draft upon completion, allowing the terminal to
accommodate the advanced mega-sized containerships.
MSC Poised to overtake Maersk as No. 1 Carrier of
US Imports
Northern Sea Route Traffic Plummets
BMT completes Hong
Development Study
Source: Journal of Commerce
20th December 2014
Mediterranean Shipping Co. is already the largest
carrier of U.S. containerized exports and the largest overall
carrier in the U.S. market. Now it is about to add the title of
largest carrier in the import market, solidifying its
dominance of the U.S. market. MSC would become the
largest carrier of containerized imports into the U.S. in
2014 if, as is likely, its lead on Maersk Line through midDecember holds until the end of the year. This would push
Maersk out of the No. 1 spot first time in over a decade.
Through November, MSC carried 1.88 million TEUs
into the U.S. while Maersk Line's U.S. import total was 1.83
million through November, a difference of 44,119 TEUs.
Source: Alaska Dispatch
19th December 2014
Port
Strategic
Source: www.pdc.gov.hk
19th December 2014
After four years of increased use of the Northern Sea
Route by vessels going in transit between Europe and Asia,
2014 saw a steep downturn. The amount of cargo
transported in transit dropped 77 percent compared to last
year. Only 274,000 tons of cargo was shipped in transit
along the Northern Sea Route this sailing season. This is a
steep downturn compared to 2013, when a total of
1,355,897 tons was shipped along the route, as Barents
Observer reported. The exact numbers of vessels in transit
along Northern Sea Route in 2014 is still somewhat
unclear.
7 Crew Members
Nagapattinam
Kong
rescued
from
Tug
BMT Asia Pacific, a subsidiary of BMT Group Ltd, is
pleased to announce the completion of The Strategic
Development Plan for Hong Kong Port 2030 (HKP2030)
on behalf of the Hong Kong Government. The Study is a
key element in guiding local port development policy and
planning investment for the future.
MOL, Reliance Pen Ship Management Agreement
Source: World Maritime News
26th December 2014
near
Japan‘s Mitsui O.S.K. Lines has signed an agreement to
manage six Very Large Ethane Carriers (VLEC) being built
by Samsung Heavy Industries for the Indian conglomerate
Reliance Industries. Once built, the VLECs will carry
liquefied ethane from the United States to India. The
vessels are expected to be delivered in the last quarter of
2016 and will enter into service thereafter.
MOL will supervise the construction of six VLECs
initially at the yard, thereafter operate, and manage the
vessels during the charter period for the Mumbai-based
Reliance.
Source: The Hindu
23rd December 2014
Seven crew members of a tug which caught fire and got
flooded five nautical miles off Nagapattinam were rescued
by the Coast Guard. The Chief Engineer of the tug, who
jumped along with the crew, is missing. A search is on.
The Coast Guard station at Karaikal received a distress
call at 1.45 p.m. from the tug, AQUA MARINE, belonging
to a Mumbai company. The message sought the Coast
Guard‘s help to save the crew. Coast Guard Station
Commander Commandant Udhal Singh alerted a Coast
Guard ship, ABHEEK, which was on patrol close to the
International Maritime Boundary Line off Point Calimere.
It reached the spot by 2.15 p.m., Commandant Udhal Singh
told The Hindu on the phone. The ship rescued seven crew
members who had jumped into the sea wearing life jackets.
A search went on for over four hours to trace the Chief
Engineer. However, he could not be traced till late in the
evening. The search resumed, the Coast Guard said. The
rescued crewmembers were provided medical aid on the
ship, which arrived at the Karaikal port at 6.30 p.m. The
Coast Guard handed them over to the port authorities.
APM Terminals Pipavav, NYK Auto Logistics to
create RoRo Facility
Source: netindian
29th December 2014
APM Terminals operated Gujarat Pipavav Port Ltd
(APM Terminals Pipavav) and NYK Auto Logistics (India)
announced setting up of a dedicated automobile yard
(RoRo) at Pipavav port in Gujarat. A press release from
APM Terminals said that, under the arrangement, NYK
Auto Logistics (India) Pvt. Ltd. had been sub-leased land
parcels by Gujarat Pipavav Port inside its premises for
developing a dedicated common user integrated RoRo
7
terminal with India‘s first port based PDI and Vehicle
Processing Centre. Gujarat Pipavav Port will provide all
the port and related facilities to the logistics operator for
ensuring smooth and seamless flow of automobile cargo.
The yard is expected to be commissioned in Q2 CY15.
NYK group operates 18 RoRo terminals globally,
including seven in China, Thailand and Singapore and has
a solid expertise in development and management of RoRo
terminals. The RoRo yard at Pipavav with annual designed
capacity of 250,000 vehicles shall operate round the clock
and all 365 days in a year. It will be equipped with a
dedicated custom bonded area, RFID for track and trace
and CCTV cameras for security of cargoes.
141 meters long and 29 meters wide, has a maximum
loading capacity of 11,228 tons, and can accommodate to
150 crewmembers. It is equipped with a 400-ton crane to
fulfil installing missions under the water. The ship can
undertake hoisting and pipe-laying missions and support
underwater robot and diving missions. It can also carry out
underwater equipment maintenance work. The ship was
built by the CSSC Huangpu Wenchong Shipbuilding
Company Limited.
Kuwait’s AL KOUT, Al Dasma named 2014 World’s
Top Tankers
Source: KUNA
30th December 2014
Shanghai to fortify No. 1 Container Port Ranking
Two Kuwait Oil Tanker Company (KOTC) vessels have
been named the world‘s top tankers for 2014, the company
announced.
AL KOUT was termed as the most “environmental,
piracy protected and proven” in the world by the Maritime
Reporter and Engineering News magazine, while Marine
log chose Al Dasma as the top “environmentally friendly
crude oil tanker.” Not only does the choice reflect full
commitment to the highest levels of safety and security on
board KOTC tankers, but also the company‘s dedication to
its responsibilities as a national and a strategic carrier,
CEO Sheikh Talal Al-Khaled Al-Sabah told KUNA.
Source: Xinhua
30th December 2014
Shanghai port is expected to handle 35.2 million TEUs
(twenty-foot equivalent units) this year, up 4.8 percent
from 2013, as the city consolidates its ranking as the
world‘s biggest container port, city officials told a press
briefing. Meanwhile, passenger traffic at the city‘s two
airports is estimated to rise 6.3 percent from a year ago to
88 million this year, said Sun Jianping, director of
Shanghai Transportation Commission. The city‘s cargo
throughput is expected to grow 5.6 percent to 3.55 million
tons. Dry bulk cargo throughput, however, may fall 2.9
percent to 754 million tons this year. In the first 11 months
of this year, 250 cruise ships docked at Shanghai port and
the number of passengers jumped 60 percent from the
same period a year earlier to 1.17 million.
NYK Group Sets Up Car Terminal in India
Source: World Maritime News
30th December 2014
NYK Auto Logistics India (NALI), a subsidiary of
Japan‘s NYK Group Company, has decided to operate a
finished-car logistics terminal with APM Terminals from
June 2015 at Pipavav port in the state of Gujarat, located in
the north-western part of India.
Since exports of finished cars by automobile companies
are expected to increase in the west coast of India, NALI
will attempt to accommodate that strong demand by
building and operating a stockyard in APM Terminals
Pipavav, a container-management company that will be
able to handle up to 250,000 vehicles annually.
RIL orders Six New Ships to Transport Ethane
Source: IANS
31st December 2014
Reliance Industries Ltd has ordered construction of six
huge ships to transport liquefied Ethane from North
America to India, an official statement said here. The
company has signed a deal with Mitsui O.S.K. Lines Ltd,
one of the world‘s largest shipping companies. MOL will
supervise the construction of six Very Large Ethane
Carriers (VLECs) ordered by Reliance, and also operate
and manage the vessels after they are built and delivered.
171 Passengers Saved from Sinking Malaysian
Ferry
China’s First 3,000-Meter-Deep Engineering Ship
put into Operation
Source: World maritime News
22nd December 2014
Source: Xinhua
31st December 2014
A total of 171 passengers have been saved from a sinking
high-speed Malaysian ferry in Malacca Strait. Ferry
Malaysia Express 1 started sinking while en route off Pulau
Rupat due to a leak in the aft section of the vessel, as
reported by Suararakyat Indonesia. The ferry was heading
for Dumai in Indonesia when the leak was discovered. The
passengers were rescued by nearby fishing vessels. The
vessel, operated by Tunas Rupat Follow Me Express,
grounded shortly after.
China‘s first multifunctional offshore engineering ship
that can operate 3,000 meters under the water was put into
operation, a major progress of China to proceed into the
deep water. The “Offshore Oil 286” ship, built with an
investment of more than 1 billion yuan (163 million U.S.
dollars), belongs to the Offshore Oil Engineering Co. Ltd,
an affiliate of China National Offshore Oil Corporation, the
country‘s largest offshore oil and gas producer. The ship,
8
ACTIVITY AT KARACHI PORT (16-31 DECEMBER 2014)
Date
16-December-14
Import InTonnes
Export InTonnes
Total
195,862
50,116
245,978
17-December -14
72,263
25,660
97,923
18-December -14
69,157
25,088
94,245
19-December -14
82,087
57,422
139,509
20-December-14
120,918
26,610
147,528
23-December-14
121,460
35,552
157,012
24-December-14
52,295
25,208
77,503
25-December-14
54,681
27,262
81,943
210235
80993
291228
210817
68711
279528
35508
31687
67195
27-December-14
30-December-14
31-December-14
350,000
300,000
250,000
200,000
Import
150,000
Export
100,000
Total
50,000
31-Dec-14
30-Dec-14
29-Dec-14
28-Dec-14
27-Dec-14
26-Dec-14
25-Dec-14
24-Dec-14
23-Dec-14
22-Dec-14
21-Dec-14
20-Dec-14
19-Dec-14
18-Dec-14
17-Dec-14
16-Dec-14
0
Source: Business Recorder
9
ACTIVITY AT PORT QASIM (16-31 DECEMBER 2014)
Date
16-DECEMBER-14
Import InTonnes
Export InTonnes
Total
39,837
34,482
74,319
17- DECEMBER -14
42,188
15,540
57,728
18- DECEMBER -14
72,981
36,062
109,043
19- DECEMBER -14
42,188
15,540
57,728
20-DECEMBER-14
38,580
30,569
69,149
24-DECEMBER-14
48,688
20,664
69,352
55158
13763
68921
31177
24092
55269
46728
33052
79780
27-DECEMBER-14
30-DECEMBER-14
31-DECEMBER-14
120,000
100,000
80,000
60,000
Import
Export
40,000
Total
31-…
30-…
29-…
28-…
27-…
26-…
25-…
24-…
23-…
22-…
21-…
20-…
19-…
18-…
17-…
0
16-…
20,000
Source: Business Recorder
10
Maritime Trade & Economy
It is against this backdrop that the terms and conditions
laid out by the government in its model revenue sharing
contract come as a surprise. The onerous clauses will drive
investors away when the need of the hour is to get the best
oil and gas companies to come in and uncover the country‘s
hydrocarbon potential.
To give the government some benefit of doubt, it has
said that the model contract was just that—a model—and
officials are working on parts of the contract that have
raised the most concern in the industry. India has for the
last several years debated whether it should completely do
away with the decades-old production sharing contract,
where a contractor is allowed to fully recover costs before
sharing revenue with the government, or move to a revenue
sharing model, where the government gets a share of
revenue from the moment production begins on a block.
After Coal, India now urgently needs to Sort out Its
Iron Ore Sector
Source: QZ
17th December 2014
India‘s steel mills are scrambling to source one crucial
commodity—iron ore. Even as the country‘s coal sector
inches towards normalcy, with the central government
adopting a new policy of auctioning coal blocks, India‘s
iron ore sector is still in the doldrums.
From one of the world‘s biggest exporters of iron ore
four years ago, India has now turned into a net importer of
the mineral as it seeks to feed its steel plants. Partly, this is
a consequence of the Supreme Court‘s ban on mining iron
ore from four years ago, after the apex court moved to curb
illegal mining. Other factors include uneven actions by a
clutch of state governments as they dither in renewing
mining leases that steelmakers badly need. “We wish the
central government had given as much importance to iron
ore sector as coal sector,” Prasad Baji, an independent
market analyst told Quartz. And the result is that some of
India‘s largest steel companies are being forced to source
ore from the international markets—some for the first time
in over a century—while others are shelving expansion
plans.
BRICS Countries lead Global Capital Flight: Report
Source: Reuters
17th December 2014
The BRICS grouping of emerging market nations is
leading the flight of illicit capital from the developing
world, according to data in a new report released this week.
In its annual estimate of illegal capital flows, Washingtonbased think-tank Global Financial Integrity (GFI) said it a
record $991 billion was siphoned in 2012 from the world‘s
developing economies, an increase of almost 5 percent
from 2011.
Illicit capital incorporates such things as mis-invoicing
of trade whereby exports and imports are booked at
different values to avoid taxes or to hide large transfers of
money. The report said that between 2003 and 2012, $6.6
trillion was moved by crooked means out of emerging
economies, finding its way to bank accounts in the
developed world or far-flung tax havens. Of that total,
about $3 trillion or almost half was diverted from the
BRICS group — Brazil, Russia, India, China and South
Africa. China, the world‘s second biggest economy, lead the
way with an estimated $1.25 trillion leaving its borders
illegally over the course of the decade. Russia is the second
biggest exporter of illicit money, India is fourth, Brazil
seventh and South Africa is 12th, according to the report.
A Model Oil Contract in India Might Not be Too
Popular
Source: Platts
17th December 2014
India is setting up a new model for outside investment
in its oil and gas sector. But as Mriganka Jaipuriyar notes
in this week‘s Oilgram News column, At the Wellhead, it
isn‘t getting rave reviews just yet.
The statistics are glaring—of the 209 discoveries made
since India launched the New Exploration Licensing Policy
in 1999, only 30 have been put into production. India last
saw a major hydrocarbon discovery in the early 2000 when
Reliance Industries discovered the deepwater KG-D6 gas
block and Cairn India discovered the Rajasthan oil block.
Furthermore, India has seen a 25% drop in gas
production between fiscal year 2009-10 (April-March) and
2013-14 to 3.42 Bcf/day, though one can say that this drop
has been partly offset by a 12% rise in crude oil production
over the same period to 37.79 million mt (760,000 b/d).
In light of these facts, one would have expected the
action-oriented and pro-investment government led by
Prime Minister Narendra Modi to have taken some decisive
steps to spur the E&P engine and deliver on its
commitment of gradually boosting India‘s energy security
and make it less import dependent. India relies on imports
to meet 85% of its crude needs and recently had the
privilege of overtaking Japan to become Asia‘s number two
crude oil importer.
U.S. talking Oil Exports Just When World needs it
Least
Source: Bloomberg
18th December 2014
The U.S. Congress is talking about allowing unfettered
oil exports for the first time in almost four decades. Its
timing could not be worse.
There is space in the global market for 1 million to 1.5
million barrels a day of U.S. crude if the ban vanishes,
Energy Information Administration chief Adam Sieminski
told a congressional subcommittee at a Dec. 11 hearing.
11
That would be less than 2 percent of worldwide demand.
With prices sliding amid a glut, the figure is bound to be
even smaller, according to consultants including Wood
Mackenzie Ltd. Global crude prices have fallen 48 percent
to below $60 for the first time since 2009. Producers say
the U.S. shale boom may falter if they can‘t reach overseas
markets, while refiners fight to keep the limits, which have
reduced domestic costs and allowed them to export record
amounts of gasoline and diesel.
that will be transported for more than 600 km from the site
of production or the receiving port.
Indonesia, which is the largest exporter of thermal coal
in the world, has also taken steps to lower the coal output,
limiting licenses for mining and export and decreasing the
production target by 6%, from 421 million tons in 2013 to
397 million tons this year.
According to Skuld, overall, there is some confusion
following the new regulatory measures from both
Indonesia as well as China with respect to what can be
exported and imported as of 1 January 2015. “With respect
to the export of Australian coal to China, which at present
is estimated to consist up to 80% of cargoes which may
exceed the upcoming sulfur and ash content limits, the
change may at first seem to suggest a dramatic change. The
impact may be tempered, however, because coal can be
processed or ‘washed‘ to meet the new ash specifications,
although this process will increase the cost of production
and it remains to be seen whether China would be willing
to pay extra for the low ash product,“ Skuld said. “On the
other hand, coal exports from Indonesia to China are
unlikely to be significantly affected by regulation on the
Chinese side given that Indonesian coal is likely to meet the
sulphur and ash requirements. Indonesia already has a free
trade agreement in place with China, so the new coal tariffs
will not affect their exports to a great extent,” the insurer
added.
India’s ONGC, PDVSA aim to raise around $1
Billion for Venezuela JV
Source: Reuters
18th December 2014
India‘s Oil and Natural Gas Corp and Venezuela‘s state
oil company PDVSA are seeking around $1 billion in credit
to stem an output decline at their San Cristobal joint
venture, two sources close to the negotiations told Reuters.
Indian banks are poised to lend the money to the joint
venture, the sources said, though ONGC would provide the
guarantee and the breakdown of the loan‘s repayment has
not yet been decided. The deal is expected to ensure stateowned ONGC receives between $400 million and $500
million of unpaid dividends that have accrued over five
years. “This could come together next year,” one of the
sources, said of the deal, which seeks to stem San
Cristobal‘s production fall from a peak of over 40,000
barrels per day to around 30,000 bpd. It is also likely to
involve creation of an offshore account, probably in Asia, to
receive the export income, guaranteeing ONGC will receive
money. With oil prices tumbling, the likely deal
underscores a broader shift toward pragmatism in
financially-strapped PDVSA under new boss Eulogio Del
Pino. The sides have negotiated for more than a year and
are close to a deal to overhaul wells, machinery and other
items over three to four years to shore up output and
change the terms of sales. Crude would be sold to a handful
of buyers, likely Indian and Asian, under 10-year
agreements, one source said.
Asian Persian Gulf Storage deals Continue amid
Global Oil Glut
Source: Platts
20th December 2014
A decade of Asian strategy aimed at strengthening the
bargaining power of the region‘s big oil importers is now
helping Persian Gulf exporters preserve market share amid
rising competition from rival international suppliers.
Since at least the middle of the last decade, major Asian
oil importers Japan and South Korea, joined more recently
by India and China, have been investing heavily in oil
storage facilities at key domestic and international
locations, the better to leverage the burgeoning trading
activities of state oil companies and domestic refiners
during an era of generally high international oil prices.
At the same time, Japan and South Korea, the two
countries most dependent on Middle East crude supplies
with each deriving more than 83% of their total oil imports
from the region in 2013, have sought to enhance their
energy security by bolstering political and trade ties with
Persian Gulf suppliers, especially Saudi Arabia, Kuwait and
the UAE. As part of that strategy, they forged a number of
strategic oil storage deals with Arab oil exporters that were
eager to cooperate.
New Regulations to affect Coal Shipping to China
and Indonesia?
Source: World Maritime News
18th December 2014
Coal shipping to China and Indonesia may likely to feel
the impact of the new regulations passed by respective
governments aimed at reducing air pollution and
increasing support for the domestic coal industry,
indemnity insurer Skuld said citing correspondents from
the region.
Under the Chinese regulations, which come into effect
from 1 January 2015, the sale and import of coal with ash
content more than 16% and sulphur content higher than 1%
will be banned in certain densely populated cities of China,
such as the cities around the Pearl River Delta, the Yangtze
River Delta and some northern cities including Beijing,
Tianjin and Hebei. Furthermore, the ash and sulphur
content will be limited to 20% and 1% respectively for coal
12
Maritime Security
No Drinking allowed on Canadian Naval Ships
needs. The government is developing a three-stage strategy
to save the shipbuilding industry, involving buying
submarines overseas but maintaining them in Adelaide,
completing the navy‘s three Air Warfare Destroyers and
building eight new frigates in Australia. While a Japanese
submarine has for months been the most likely option,
Japanese domestic politics remained an issue. Defence
officials are in discussions with their Japanese
counterparts to see whether the submarine technology they
have on offer would suit Australia‘s requirements. If that
deal does go through, Australia is likely to share in the
design and building of a new class of submarine that will be
an evolution of Japan‘s Soryu. If Australia does buy a
Japanese submarine, it will be modified to extend its range
and fitted with the same potent combat system and
torpedoes as US nuclear-powered attack submarines.
Source: digitaljournal
16th December 2014
The Royal Canadian Navy imposed a ban on alcoholic
beverage consumption aboard naval vessels with only a few
minor exceptions. The ban came after a warship had to be
recalled from sea exercises in July because of an incident in
San Diego. The almost total ban on alcohol aboard
Canada's naval ships means sailors will only be allowed to
imbibe on special occasions, such as Christmas, and then,
only if given permission. Naval commander Vice-Admiral
Mark Norman issued the order on December 12 "The
consumption of alcohol will be prohibited while ships are at
sea," Royal Navy Commander vice admiral Mark Norman
told reporters. "Unfortunately alcohol does contribute to
misconduct and has done in the past and we just want to
try and regulate that as best we can.
Tamil Nadu Fishermen accuse Sri Lanka Navy of
Chasing Away 3,000 Indian Fishermen
Kenya Maritime Authority wants Liners to Drop
Piracy Charges
Source: www.dnaindia.com
16th December 2014
Source: Standard Media
16th December 2014
Fishermen in the Rameswaram area of Tamil Nadu
have reportedly accused personnel of the Sri Lankan Navy
of threatening and chasing away 3000 Indian fishermen.
Media reports quoted them, as saying that Sri Lankan
Naval personnel issued the warning and fired shots at the
Tamil Nadu fishermen fishing near the Katchatheevu islet
in the Palk Straits. The fishermen were in 682 mechanized
boats when the warning and the shots were reportedly
fired, and had to return without their catch. The Sri Lankan
Navy personnel entered the area in five fast boats and a
ship and reportedly fired eight rounds of ammunition in
the air.
International shipping lines have maintained the piracy
charge in their tariff documents long after the menace was
eliminated off the coast of Somalia, the Kenya Maritime
Authority has revealed. “We need to engage over this
matter with those shipping lines,” Kenya Maritime
Authority Director General Nancy Karigithu said. She
spoke during a meeting organised by the ministries of
Transport from Kenya, Tanzania, Djibouti and Yemen to
fine-tune a protocol on co-operation on information
sharing and training on maritime security. Shipping lines
sustain a piracy surcharge of $25 (Sh2, 263), $150 (Sh13,
578) and as high as $700 (Sh63, 364).
Putin Ready to Lease Nuclear Submarines to India,
Minister says
Tony Abbott to surface with Plan for Submarines
Source: Bloomberg
16th December 2014
Source: the Australian
16th December 2014
Russia said it's ready to lease India more nuclearpowered submarines a day after President Vladimir Putin
and Prime Minister Narendra Modi pledged to deepen
defense ties. "If India decides to have more contracts to
lease nuclear submarines, we are ready to supply," Russian
trade minister Denis Manturov said in an interview in New
Delhi. The vessels would bolster India's ability to patrol its
waters as it seeks to thwart China's efforts to extend
influence in the Indian Ocean. Russia will remain our most
important defense partner," Modi said after welcoming
Putin to the capital. They discussed a "broad range of new
defense projects," including plans to make one of Russia's
most advanced helicopters in India, he said. India inducted
its first nuclear attack submarine from Russia for $1 billion
in 2012 under a 10-year contract, which can carry out
longer missions and respond faster to threats. Its fleet of 14
TONY Abbott is expected to announce within days the
start of the process for selecting the navy‘s new submarines
from a range of international options and for building and
maintaining them. The Australian has been told the Prime
Minister‘s announcement is likely to include the creation of
a new defence industry entity to work with an experienced
international submarine designer and builder. The
expected re-election of Prime Minister Shinzo Abe‘s
government with a substantial majority will remove a
significant hurdle to Japan providing new submarines for
Australia. Japan, Germany, France and Sweden are all keen
to provide the submarines. The Japanese are ahead of the
others because they have the most experience building
conventional submarines large enough to meet Australia‘s
13
diesel-power submarines are more than a decade old, with
half of them commissioned in the 1980s.
Russia will have to quadruple its current investments of
$3.7 billion in India for the two countries to meet their
bilateral trade target of $30 billion by 2025, Manturov
said. Reaching that target will mean India breaking into
Russia's top five trading partners, up from the current rank
of 21, he said.
eyesight of the captors to kill stress and tire themselves to
sleep and cooking for 11 people including the four
Somalians guarding them are some of the other memories.
But thankfully, piracy has declined sharply in the past two
years—there has not been any hijack since May 2012 in the
Indian Ocean after international navies started guarding it.
Living with Pirates and Surviving to tell the Tale
Source: BangkokPost
18th December 2014
Thai Boats Seized, Not Sunk, in Indonesia
Source: The Hindu Business Line
17th December 2014
Two Thai fishing boats have been seized — not sunk —
after being caught trawling illegally in Indonesian waters, a
local media outlet reported. The Jakarta Post reported that
an Indonesian Navy warship arrested the two boats off
Anambas in Riau Island province Dec 11, less than a week
after sinking three Vietnamese vessels accused of illegal
fishing in the same waters. The Thai Overseas Fisheries
Association and Songkhla Fisheries Association warned
Thai fishing fleets Dec 12 to avoid Indonesian waters due to
a policy imposed Dec 6 to sink all illegal foreign trawlers.
The two Thai boats, however, escaped sinking when the
KRI SULTAN HASANUDDIN 366 Sigma-class vessel
seized the 50-70-tonne boats. Crews in both boats, all
believed to be Thai, failed to present proper documents.
Both vessels and dozens of sailors were detained at the
Tarempa naval base on Siantan Island, Anambas Islands
regency.
When Bhimsen Singh agreed to work on MV
ASPHALT—a foreign-flagged ship—in 2010, he certainly
did not sign up for eating plain boiled rice with salt or
chapatti with black tea. But for four years that was all the
seafarer got to survive on after Somalian pirates took over
his ship. Singh‘s nightmarish ordeals included walking
miles just to fetch drinking water and living without
electricity deep within Somalian forests with guards who
were trained to pull the trigger at the slightest provocation.
“But that was our life,” said Singh, one of the seven Indian
seafarers released two weeks ago. The seafarers initially
spent six-and-half months on the ship before being taken
to Somalia. In 2011, the pirates released eight
crewmembers and the ship in exchange for ransom
running into millions of dollars but held back seven. For
these seven seafarers, the only contact to the outside world
was a phone call made to their family once every two-three
months.
“We were told that we would be released only after
some 120 Somalian pirates—captured by India—were
released,” said Singh. In 2013, the pirates changed their
mind and said they wanted ransom instead. Finally, after
long-drawn negotiations, in September 2014, Chirag Bahri
of Maritime Piracy Humanitarian Response Programme
(MPHRP) got in touch with the seafarers. MPHRP is an
agency funded by shipping and insurance companies,
which works for seafarers hit by piracy attacks. “While this
was the longest time spent by Indians in captivity after a
piracy attack, there are some Thai seafarers, held captive
since April 2010, who are yet to be rescued,” said Bahri,
Regional Director-South Asia, MPHRP. “Release of these
seafarers involved ransom, negotiations by London-based
law firm HSW, and backend support from many agencies
including the Government, though not in the form of
money,” shared Bahri, who is himself a piracy attack
survivor. “We do not negotiate with pirates, there are
special teams who do so,” said Bahri. In some cases where
the employers abandon seafarers, MPHRP arranges for
funds from partners to send money to the seafarers‘ family
(about $200 a month). Second coming after going through
such a traumatic experience, many seafarers including
Singh prefer employment on shores or Indian waters. Last
year, the MPHRP helped 14-15 such seafarers find
employment in Indian coastal waters. Reunited with his
family after such a long time, Singh is still haunted by the
nightmarish experiences of killing 100-odd snakes and
being
threatened
on
gunpoint
several
times.
Sharing tales of each other‘s‘ families, walking within the
Navy Bombs Thai Vessels in Fight against Poachers
Source: The Jakarta Post
31st December 2014
The Navy sunk two vessels from Thailand after the court
confirmed on Dec. 23 the ships‘ involvement in illegal
fishing in the waters off Anambas Island in Riau Islands
province. Equipped with explosives, several personnel from
the Navy‘s special force planted bombs inside the vessels
before they detonated them from afar in Anambas waters,
near the South China Sea. It took only around five minutes
for the vessels to sink.
The 70 gross ton (GT) MV KOUR SON 77 was caught
by the Navy‘s KRI SUTEDI SENOPUTRA on Nov. 14 with
six crew on board -- 2 from Thailand, 3 from Myanmar and
one from Laos. Another vessel, KM G. CHAWAT 5, was
seized by KRI SULTAN HASANUDDIN on Dec. 11. The 103
GT ship could not provide any legal documents to operate
in Indonesian waters.
“As instructed by the President, the Navy has shown its
strong commitment to sinking vessels involved in illegal
fishing,” said Navy Western Fleet commander Rear
Admiral Widodo. Widodo said that the sinking was in line
with Indonesia‘s rule of law, which had been confirmed by
a court verdict. “With the quick verdict, we hope that it will
deter foreign poachers from entering our territory,” he
said. Since taking office on Oct. 20, President Joko
“Jokowi” Widodo has drawn the battle line in the war
against poachers. On Dec. 5, three Vietnamese vessels were
also sunk near Anambas, while on Dec. 21, two vessels from
Papua New Guinea were destroyed on the shore of Ambon,
14
Maluku. Despite the stern approach, critics have been vocal
about the government‘s lenient stance against illegal
fishing involving Chinese vessels. Since the fight against
poachers intensified in late November, no Chinese vessels
have been treated harshly by the government.
another year. The navy plans a fleet of five SSBNs, all of
them capable of firing nuclear-tipped ballistic missiles
from under the sea. Two more ARIHANT class submarines
are being fabricated at the SBC in Vizag and are likely to be
inducted over the next five years. India currently operates
one nuclear submarine, the INS CHAKRA (the ex-Russian
sub 'NERPA') taken on a ten-year lease from Russia in
2012. One of the items on the agenda of recent summitlevel talks between Russian President Putin and Prime
Minister Narendra Modi is believed to have been the lease
of a second SSN, the unfinished 'IRIBIS', left unfinished
after the breakup of the Soviet Union.
On Illegal Fishing Front, TNI Still finding it Hard
to Catch ‘Big Fish’
Source: The Jakarta Post
27th December 2014
Criticized for netting only the small fry in its struggle
against illegal fishing, the Indonesian Military (TNI) has
claimed that the vast maritime territory and lack of
equipment are its biggest obstacles in catching larger boats.
“We are very serious in doing our job and never play games
on this duty or pussyfoot [with the illegal fishermen],” TNI
commander Gen. Moeldoko told reporters before attending
an executive meeting at the military headquarters in
Cilangkap, East Jakarta. He also denied that the force‘s
slow response was due to collusion with the perpetrators.
Moeldoko said the military, especially the Navy, found
many difficulties in doing its job because of the huge size of
Indonesia‘s waters, lack of fuel supply and technical issues.
“Our seas are enormous, although they look small on the
map,” he said. With the large maritime territory, Moeldoko
said the Navy needed more fuel to operate its patrol boats
and frigates.
Indigenous Nuclear Powered Submarine
ARIHANT to Head out for Sea Trials
INS ARIHANT may be of Limited Utility
Source: thehindu
22nd December 2014
India‘s first indigenous nuclear submarine may not
ensure deterrence, to be available for patrol for one-fifth of
lifespan. India‘s first indigenous nuclear submarine, INS
ARIHANT (S2), which made its first foray into the sea for
mandatory trials ahead of induction into the Navy, may in
effect be a limited utility submarine, if not just a technology
demonstrator. The ballistic missile nuclear submarine
(SSBN), said to add the third dimension of the nuclear
triad by giving India the vital survivable second-strike
capability, falls short of ensuring credible minimum
deterrence, sources said. Worse, the capacity of the reactor
suggests that ARIHANT will hardly be available for
operational patrol even for one-fifth of its lifespan, having
to spend great amounts of time on transit to patrol areas.
“The effective fuel inventory of the submarine reactor is
insufficient for longer duration deployment of the vessel far
away from Indian shores, as it will necessitate frequent fuel
changes that are time-consuming,” said a Navy veteran,
who was previously associated with the project.
INS
Source: indiatoday
16th December 2014
India's quest for a secure seaborne nuclear deterrent is
set for a giant stride when its first indigenously constructed
nuclear submarine the INS ARIHANT begins sea trials this
week. Naval sources indicated a casting-off date of
Monday, December 15, and preparations are currently
underway at the Shipbuilding Centre, Visakhapatnam to
ensure a smooth sail out for the 6,000-tonne nuclear
powered ballistic missile submarine (SSBN)."It will be a
surfaced sortie, but a great milestone nevertheless," naval
officials told India Today. It has been a slow crawl for the
ARIHANT since she was launched at the shipbuilding
centre in Vizag on July 26, 2009. It was four years before
the next major milestone could be crossed, in August 2013
when the 83MW reactor onboard the submarine went
critical. Navy chief Admiral Robin Dhowan told media
persons on December 3 that the submarine would
commence its sea trials "very soon" and attributed the fiveyear time lag to the complexity of the platform and its
equipment.
Sources say the navy chief Admiral Dhowan wanted
Prime Minister Narendra Modi to be present at the cast-off,
but it failed to materialize because of scheduling reasons.
Naval officials say the sea sortie marks the first in a series
of steps-submerged sea trials and weapon firing trials,
which the submarine will have to cover before she is ready
for induction into the navy, a process which could take
The Philippines wants Submarines to Deter China
Source: The National Interest
18th December 2014
The Philippines is seeking to procure three submarines
a senior Philippines naval official announced. According to
numerous local media outlets, Caesar Taccad, the vice
commander of the Philippines Navy, said that the navy has
begun laying the decade-long groundwork necessary to
build an effective submarine fleet. “Actually we already
formed a submarine office in the Philippine fleet,” he said.
The rear admiral said that the country was ultimately
hoping to acquire at least three submarines but that
financial constraints might limit them to only two vessels.
“If you cannot afford three, get two just like we're getting
two frigates and two strategic sealift vessels so they can
replace each other during maintenance. If you only procure
one and continuously use it, it will only last for 5 years,” he
explained. Amid on-going disputes with China over
overlapping claims in the South China Sea, the Philippines
has spent PHP41 billion ($925 million) on modernizing its
military platforms since President Benigno Aquino took
office in 2010. Still one of the weakest military powers in
15
the region, last month President Aquino pledged to devote
an additional PHP91 billion ($2.01 billion) to modernizing
the country‘s defense by 2017. Much of this, including the
submarines, will go to procuring platforms to counter
China in the disputed waters. “We need submarines for
deterrence,” Taccad explained at the press conference.
President Commends Kenya Navy in Fight against
Drug Trafficking
Source: Coastweek
19th December 2014
Kenyan President Uhuru Kenyatta has praised the role
played by Kenya Navy in the fight against drug traffickers
and piracy. Kenyatta said the navy has also helped deter
attacks from other criminals using the sea in their illegal
activities, recalling the recent destruction of a ship carrying
drugs, which he witnessed. "Drug traffickers and other
criminals had resorted to using the sea in their illegal
activities. “Building on its many successful interventions in
connection with our territorial waters, our navy has
disrupted several drug trafficking attempts," he said in
Mombasa during the 50th Anniversary Celebrations of the
Kenya Navy.
Indian Court Dismisses Marine's Plea to extend
Stay in Italy
Source: Reuters
18th December 2014
India's top court dismissed a plea by an Italian marine
facing murder charges to stay in his home country for four
more months to undergo medical treatment. Massimiliano
Lattore, who suffered a stroke in August, is one of two
Italian marines accused over the 2012 shooting of two
fishermen mistakenly believed to be pirates, in a case that
has soured ties between New Delhi and Rome. The
Supreme Court had allowed Lattore, 47, to return to Italy
in September for four months of medical treatment. He
sought to double that extension in his latest plea to
undergo treatment that includes heart bypass surgery. "The
plea of the accused is dismissed," Chief Justice of India
H.L. Dattu said.
Gulf of Guinea: Africa's New Pirate Paradise
Source: Dawn.com
20th December 2014
A year after vowing to banish buccaneers from their
waters, countries in the Gulf of Guinea - the new epicentre
of piracy in Africa - are struggling to get their act together.
The coastal area extending from Senegal to Angola has
stolen the limelight from the Gulf of Aden on the piracy
front. From hijacking cargo ships and siphoning their fuel
to illegal fishing and transporting contraband, seafaring
robbers are squeezing the region's economy. Between Jan
and Sept, the Gulf of Guinea recorded 33 incidents of
piracy and armed robbery.
Sikorsky and India Forge Helicopter Deal
Source: Bill Fallon
20th December 2014
The Indian Navy has selected Stratford-based Sikorsky
Aircraft Corp., a subsidiary of Hartford-based United
Technologies Corp., to provide 16 Seahawk helicopters.
“Negotiations will now begin to procure 16 S-70B Seahawk
helicopters, with an option for eight additional aircraft,
along with a complete logistics support and training
program,” Sikorsky said in a recent statement.
India Taking Steps to Deal with China’s Influence
in Seas: Defence Minister Manohar Parrikar
Source: The Financial Express
20th December 2014
Survey Ship Decommissioned
India is taking counter steps to deal with the growing
influence of China in neighbouring countries, particularly
in their seas; Defence Minister Manohar Parrikar said in
Lok Sabha, noting that modernisation of Navy was going
on “quite well”. “We are responding. India is taking counter
measures along maritime areas,” he said during Question
Hour. The reply came after Adhir Ranjan Choudhary
(Cong) asked what steps India was taking to check the
growing influence of China in maritime areas of Pakistan,
Myanmar, Bangladesh and Maldives. Parrikar said Prime
Minister Narendra Modi has also visited a few
neighbouring countries to improve bilateral ties. He said
the programme to modernise the Navy was going on “quite
well” as six conventional submarines are being constructed
while plans are afoot to make six more.
Parrikar said the modernisation programme of the
Indian Navy is focussed on indigenous warship
construction and is largely driven by Indian shipyards and
industry. The steps are being taken by the government to
make the country self-sufficient in the field of indigenous
construction of naval vessels.
Source: The Indian Express
20th December 2014
KARWAR: INS NIRDESHAK, a hydrographic vessel of
the Indian Navy, was decommissioned at the Karwar naval
base after 31 years of dedicated service to the country. Vice
Admiral S K Jha, Chief Hydrographer to the Govt of India
was the chief guest on the occasion.
INS NIRDESHAK is the second of the Sandhayak class
of survey ships. It was commissioned into the Indian Navy
on October 4, 1983 at Garden Reach Shipbuilders and
Engineers Ltd, Kolkata. The first commanding officer of the
ship was Commander KR Srinivasan, who later went on to
become the Chief Hydrographer to the Govt of India.
NIRDESHAK has undertaken numerous Indian and
foreign hydrographic survey operations to prepare
navigational charts for mariners. It had also assisted
numerous wreck investigations of sunken ships and been a
participant in Disaster Relief Operations during an
earthquake at Kandla and tsunami in Sri Lanka.
16
After Mauritius, India to Export Warships to Sri
Lanka
going to handover the OPV to a delegation from Mauritius
in Kolkata on December 20. After this, I hope the interest
among our friendly countries to buy Indian warships will
go up," said GRSE chairman and managing director Rear
Admiral (retd) A K Verma. Though it might be "tough" to
bag the Philippines' contract due to the competition from a
Spanish, a French and three Korean shipyards, Verma said
he was hopeful of stitching up the deal. As for Vietnam,
Verma said technical negotiations were underway for the
four 140-tonne fast-patrol boats with aluminium hulls. All
this could eventually pave the way for India's warship
building industry to come into its own in terms of exports.
Incidentally, all the 41 warships currently on order by the
Navy are being built in Indian shipyards for well over Rs 2
lakh crore.
Source: IBN Live.com
21st December 2014
KOLKATA: India will now export two warships to Sri
Lanka after delivering a warship to Mauritius for the first
time, Minister of State for Defence Production Rao Inderjit
Singh said. "From Sri Lanka, we have received an order to
build two off-shore patrol vehicles (OPV) and they are
under construction in Goa Shipyard," the minister said on
the side lines of the ceremonial delivery of warship CGS
BARRACUDA to the Mauritian Coast Guard.
He said the ships are entirely indigenously built and
there hasn't been any technology cooperation with any
foreign partners. “This is the first time the export barrier
has been breached. This will be the first in the long line of
ships that we hope to export from our country. I think the
country can feel proud that the ship-building industry has
come of age," the minister said.
USN: TORTUGA allision Costs CO, XO Their Jobs
Source: MarineLink
22nd December 2014
USS TORTUGA's (LSD 46) Commanding Officer, Cmdr.
Thomas Goudreau and Executive Officer, Cmdr. John
Fleming, were relieved of their duties Dec. 16, due to loss of
confidence in their ability to safely operate and navigate
the ship and their credibility to lead the crew. At
approximately 7:30 a.m. on Oct. 6, USS TORTUGA (LSD
46) made contact with Thimble Shoals buoy (1TS) while
enroute to her scheduled anchorage off the coast of
Virginia. The allision caused the buoy to become adrift as
well as over $2.5M damage to the ship. The ship entered
National Steel and Shipbuilding Co. (NASSCO) repair
facility in Norfolk, where repairs were completed Dec. 11.
Following an official command investigation, Commander,
Amphibious Squadron Four, Capt. Jim Cody, found
Goudreau and Fleming violated UCMJ Articles 92 (Failure
to Obey an Order of Regulation) and 110 (Hazarding a
Vessel) at non-judicial punishment proceedings.
Navy to take Delivery of New Stealth Missile
Corvette Next Week
Source: Focus Taiwan
23rd December 2014
The Taiwanese Navy is set to take delivery of its first
locally designed stealth missile corvette from a Taiwanese
shipbuilder during a ceremony slated for Dec. 23, the
Ministry of National Defense said. During the ceremony in
a commercial harbor in Suao, the 500-ton corvette -- the
TUO JIANG ("Tuo River") -- will be officially transferred
from Lung Teh Shipbuilding Co. to the Navy. After
receiving the corvette, the Navy will begin training
personnel to familiarize them with the craft, and Navy
officials did not think it would take long before the vessel is
put into service. The corvette will be based in Suao, Yilan
County, according to the Navy.
Third Borey-Class Strategic Nuclear Submarine
Joins Russian Navy
India Bids for Building Frigates for Manila
Source: Clipping News World Wide
22nd December 2014
Source: indiatimes
22nd December 2014
Russia's third Borey-class nuclear-powered ballistic
missile submarine, the VLADIMIR MONOMAKH, was
officially inducted in the Russian Navy, the Sevmash
shipyard reported. "The ceremony of raising the Russian
Navy colors on the VLADIMIR MONOMAKH submarine
on December 19, at Sevmash," the shipyard's press-service
said in a statement. According to the statement, the
submarine will soon leave a naval base in Severodvinsk in
northern Russia to join the 25th Submarine Division of the
Pacific Fleet based in Russia's Far East. Borey-class
submarines are to become the mainstay of the naval
component of Russia's strategic nuclear deterrent,
replacing the aging Typhoon class and Delta-class boats.
Even as India is now all set to export its first warship to
Mauritius, it is also bidding for a Rs 2,000 crore project to
build two frigates for Philippines amid stiff competition
from European and South Korean shipyards. Kolkatabased defence shipyard Garden Reach Shipbuilders and
Engineers Limited (GRSE) is also gearing up to build four
offshore patrol vessels (OPVs) for Vietnam under the $100
million credit line extended to it. India is helping Vietnam
with submarine and fighter training as well as military
equipment, with both being wary of an assertive China in
the Asia Pacific region, as reported earlier by TOI. The
export of the 1,350-tonne OPV to Mauritius -- christened
CGS BARRACUDA after being built for $58.5 million - also
marks a new milestone for India, whose arms imports are a
staggering 40 times the size of its exports. "This is the first
warship export order for any domestic shipyard. We are
17
China stops Work at Yemen Oilfield after Terror
Threat
SANA'A: Operations at an oilfield and processing facility
in Yemen have been halted after terrorist threats were
received by operator Nexen, a subsidiary of China National
Offshore Oil Corporation (CNOOC). Nexen shut down the
Block 51 field operations and BAK PF processing facility
after the company received the threats from Al Qaeda.
Operations will not resume until the local situation is safe
for workers to return, the company said. Nexen is engaged
in developing energy resources in some of the world‘s most
significant basins including the UK North Sea, offshore
West Africa, the United States and Western Canada. The
company was acquired by CNOOC in 2013.
referendum on March 16, in which 96.77% of Crimeans and
95.6% of Sevastopol voters chose to secede from Ukraine
and join the Russian Federation. Russian President
Vladimir Putin signed the reunification deals March 18.In
the Soviet Union, Crimea used to be part of Russia until
1954, when Nikita Khrushchev, the first secretary of the
USSR‘s Communist Party, transferred it to Ukraine's
jurisdiction as a gift. Work to integrate the Crimean
Peninsula into Russia‘s economic, financial, credit, legal,
state power, military conscription and infrastructure
systems is actively underway now that Crimea has accessed
to the Russian Federation. Despite Moscow‘s repeated
statements that the Crimean referendum on secession from
Ukraine was in line with the international law and the UN
Charter and in conformity with the precedent set by
Kosovo‘s secession from Serbia in 2008, the West and Kiev
have refused to recognize the legality of Crimea‘s
reunification with Russia.
Indian Coast Guard to Share Maritime Experiences
with Qatari Navy
Brazil to Acquire 15 Conventional Submarines and
Six Nuclear Subs, Says Navy Commander
Source: The Peninsula
22nd December 2014
Source: IHS Janes
23rd December 2014
ICGS VIJIT on a voyage to Gulf countries, choose Doha
as its port of call to coincide with National Day
celebrations. “The purpose of our visit to Qatar and the
region is based on common maritime interests with
maritime law enforcement agencies,” Rakesh Pal, Deputy
Inspector-General, Commanding Office of the ship, told a
press conference on board the ship at Doha port. “The visit
also aims to enhance cooperation between India and Qatar,
already developed in previous visits of Indian Coast Guard
ships to the country,” he added.
In November 2008, both countries signed a five-year
defence cooperation agreement, which was extended in
2013 by another five. The agreement‘s implementation
mechanism is a joint committee on corporation.
Brazilian Navy commander Admiral Julio Soares de
Moura Neto has reaffirmed the country‘s long-term plans
to boost Brazil‘s naval power to eventually include 15
conventional and six nuclear-powered submarines, the
defence publication Jane‘s is reporting. “Our aim is to
propel Brazil forward into the 21st century with a more
well-equipped navy supported by a stronger defence
industry,” Adm de Moura Neto told IHS Jane‘s at the
recent inauguration ceremony of the main facility built for
Brazil‘s submarine development programme (PROSUB) at
Itaguaí Shipyard, Rio de Janeiro. “PROSUB is the most
ambitious contemporary development of the Brazilian
Navy, representing a substantial investment in the country
through technology transfer, professional training, and
regional growth through the generation of income,” he
said.
Source: Gulfshipnews
26th December 2014
Russian Naval Base resumes in Crimea
Source: Tass
21st December 2014
Vietnam's Ballistic Missile can strike Southern
China: Kanwa
The Crimean naval base, a part of the Black Sea Fleet
until 1996, is reconstituted fully, a representative of the
Black Sea Fleet‘s headquarters told reporters. Russian
Defense Ministry board considering formation of military
grouping in Crimea “The headquarters are in Sevastopol,
where until March 19 were the headquarters of the
Ukrainian Navy. The head is Captain Yuri Zemsky who
previously was commander of a Navy division in the
Mediterranean Sea," the representative said. “The new
units have joined the group of forces to provide coverage
from the Black Sea from enemy‘s ships.” Crimea‘s accession
to Russia the Republic of Crimea and Sevastopol, a city
with a special status on the Crimean Peninsula, where most
residents are Russians, refused to recognize the legitimacy
of authorities brought to power amid riots during a coup in
Ukraine in February 2014. Crimea and Sevastopol adopted
declarations of independence on March 11. They held a
Source: WantChinaTimes
30th December 2014
With an attacking range of 280 kilometers, the
Vietnamese navy's 3M-14E Klub-S submarine-launched
ballistic missile (sic) can be used against China's Hainan
and Guangdong provinces when launched from southern
Vietnam's Cam Ranh Bay, military analyst Andrei Chang,
also known as Pinkov, wrote in an article for the Kanwa
Defense Review, a Chinese-language military magazine
based in Canada.
The purchase of 3M-14E ballistic missiles from Russia
makes Vietnam's six Kilo-class 636MV submarines more
powerful than their Chinese counterparts. Pinkov said the
3M-14E is only allowed to be exported to Algeria, India and
Vietnam. It is not allowed to be installed aboard China's
Kilo-class MV submarines yet. In a war between China and
18
Vietnam, the Vietnamese navy is very likely to use the
submarines in the vanguard against the PLA Navy. In a
potential operation against China's South Sea Fleet based
in Zhanjiang in Guangdong, the ballistic missile can be
used in coordination with satellites. This is enough for the
People's Navy of Vietnam to attack critical Chinese naval
targets in Hainan and Guangdong. (Editor: This missile is
a cruise missile).
region.
China Praises
Handling
Submarine
Crew's
Emergency
Source: xinhuanet
28th December 2014
The Chinese military was urged to learn from the crew
of a submarine, after they successfully handled a major
underwater emergency in mission. Following an
instruction by President Xi Jinping, chairman of the
Central Military Commission (CMC), a seminar was held to
promote the experience of the crew of People's Liberation
Army (PLA) Navy submarine 372.
NSTL Torpedo Recovery Vessel Launched
Source: The Hindu
30th December 2014
The torpedo launch and recovery vessel of the Naval
Science Technology Laboratory (NSTL) here was launched
in Shoft Shipyard at Bharuch in Gujarat, according to a
press release. The release said the vessel was launched by
Lalitha Bhujanga Rao, the wife of Dr. V. Bhujanga Rao, the
Director-General (naval systems and materials) of the
DRDO. The vessel, 50 m long with a speed of 15 knots, was
constructed at the private shipyard. It has a complement of
50 personnel including 13 scientists and it will be
commissioned in March, 2015. It will be used for technical
trials of the underwater weapons and systems developed by
the NSTL here. The vessel will be kept under the control of
the Eastern Naval Command of the Navy here.
Sri Lankan Navy 'Rescues' Eight Indian Fishermen
Source: PTI
30th December 2014
COLOMBO: Sri Lanka claimed to have "rescued" 8Indian
fishermen who it said were distressed at sea even as
officials in Tamil Nadu said that they had been arrested for
alleged poaching.
The fishermen were found off the coast of
Kankesanturai in the northern Jaffna peninsula, the Sri
Lankan navy said. They have now been handed over to the
fisheries inspectorate at the Delft islet, the navy said.
However, Fisheries Department officials in Tamil Nadu
yesterday alleged that the fishermen were arrested near
Katchatheevu, an islet ceded to Sri Lanka by India in 1974,
and were taken to Thalaimannar along with their boat.
British Navy Releases 14 Indian Fishermen
Source: The Time of India
20th December 2014
KANYAKUMARI: The British navy has released a fishing
boat with a crew of 14 fishermen from Tamil and Kerala
which was apprehended near Diego Garcia Island in the
British Indian Ocean Territory.
Fisheries officials in Chennai confirmed that the British
navy had released the boat - GREESHMA - which was
apprehended on December 5 for violating the borders. "We
received information about their release, and they are
sailing back home. The fishers allege that there are eight
more boats in the custody of the British navy. However, we
could not confirm the report. We are optimistic that the
British navy will release other fishermen soon," a senior
official at the fisheries department said.
BHEL enters Partnership with 2 Firms to Bid for
Submarine Project
Source: in.com
31st December 2014
MUMBAI: State-owned power equipment maker Bharat
Heavy Electricals Ltd (BHEL) has entered into a
partnership with Mishra Dhatu Nigam Limited (Midhani)
and Hindustan Shipyards Limited (HSL) to bid for the
P-75 I submarine project of the Indian Navy. "The
consortium will jointly stake claim with the ministry of
defence for being considered as a prospective bidder for the
proposed P-75 I project of the Indian Navy for building six
submarines at an Indian shipyard," BHEL said in a
statement.
Project-75 India (P-75 I) aims at building six
submarines for the Indian Navy to plug gaps in the
submarine fleet. The estimated cost of the project is $11.10
billion. The MoU for the upcoming venture was signed
between BHEL, Midhani and HSL on 26 December. "BHEL
has a large infrastructure, including dedicated engineering,
research and development and manufacturing facilities at
several locations to manufacture various types of
equipment and provide complete services to meet the
requirements of the Indian defence sector," the Maharatna
Company said.
Iran’s New Submarine to Undergo Test in Drill
Source: tasnimnews
29th December 2014
Iran‘s Navy commander unveiled plans for testing a new
submarine, dubbed FATEH (Conqueror), during massive
military exercises underway in south and southeast of the
country. Speaking to reporters on the sidelines of the largescale war game, codenamed “Muhammad Rasulullah”
(Muhammad, the messenger of God), Navy Commander
Rear Admiral Habibollah Sayyari said the Fateh submarine
will be tested during the exercises. In his previous
interviews, the commander had described Fateh as one of
the most advanced submarines of the country and the
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Centre Allows AAI to Lease Land to Navy, Coast
Guard
western city of Mumbai, Prime Minister Narendra Modi
praised the ship, saying, "When people have a sense of our
military capability, nobody will ever dare to cast an evil eye
on our nation." Currently the world's biggest weapons
importer, India has been investing aggressively in warships
and aircraft in recent years. In the budget for the fiscal year
through March 2015, 2.29 trillion rupees ($36.7 billion)
was earmarked for military spending, up 11.2% from the
previous year and an increase of 150% from the year
through March 2008. Only eight countries spent more.
India became the sixth country with a nuclear submarine
after it purchased one from Russia, and in August 2013 it
launched its first domestically built aircraft carrier, the
40,000-ton Vikrant, in which China is showing a strong
interest. India is currently field testing its first home grown
nuclear submarine, the Arihant, aiming to deploy the vessel
by the end of 2015.
The country's air force is also expanding rapidly. In
2012, French company Dassault Aviation won a $20 billion
bid to supply India with 126 of its Rafale midsize multirole
fighters. The country is also planning to use U.S.-made
attack helicopters. India's hasty military build-up is fuelled
in part by concerns about China, which is stepping up
maritime expansion, as well as misgivings about
neighbouring Pakistan. The threat of cross-border terrorist
attacks is also ever-present. India appears convinced it
must expand its navy, air force and army simultaneously to
counter these perceived threats. But the more urgent aim
of the drive is to modernize as soon as possible the
country's aging and obsolete weapons and equipment,
which lag far behind global standards in quality and
quantity. Its airplane and tank fleets consist largely of old
Russian models, and its infantry equipment, such as
wireless communications and night-vision devices, is far
inferior to that of the People's Liberation Army of China,
India's biggest potential adversary.
India's policy of building up its underdeveloped defense
sector appears to have created the industrial momentum
the government was hoping for, with foreign and domestic
companies alike rushing to a market expected to be worth
hundreds of billions of dollars over the next decade.
Source: www.firstpost.com
30th December 2014
NEW DELHI: The government today granted its approval
to the Airports Authority of India (AAI)'s proposal to lease
some of its land spread over four airports, including the
one at Porbandar in Gujarat, to the Navy and the Coast
Guard for various projects. A meeting of the Union cabinet,
chaired by the Prime Minister Narendra Modi, approved
the leasing of AAI's land to the Indian Coast Guard/Indian
Navy (Ministry of Defence) at various airports. The leasing
of the requisite land at proposed airports will facilitate the
coast guard/navy to establish various facilities for better
surveillance of coast line, it said. The cabinet has given its
approval to lease 4.62 acres of AAI land to the Navy and
another 7,326 sqm of land to the Coast Guard at the
Porbandar Airport. It also accorded its approval to lease
6,200 sqm of AAI land at Juhu Airport to the Coast Guard
for two hangars with apron and a link taxi track.
Companies flock to India's Liberalized Defense
Sector
Source: Asian Review
18th December 2014
When India raised the upper limit on foreign ownership
in the defense industry to 49% from 26% in August, it had
three goals in mind: improve the current-account balance,
introduce foreign military technologies, and set the stage
for eventually exporting domestically made weapons.
India's leading private-sector companies responded
enthusiastically to the liberalization move -- part of the
country's "Make in India" campaign -- and have been
ramping up their defense-related businesses ever since.
Anand Mahindra, chairman of Mahindra group, a
conglomerate involved in everything from cars to
information technology, welcomes the change. "[Allowing]
49% foreign direct investment in the defense sector will
enable us to access global partners who could complement
our strengths and bring in new technologies," he said. The
group has expressed plans to develop radar systems, as well
as parts for armoured vehicles and airplanes.
Mahindra is far from alone in sensing a profit
opportunity. Tata Power SED, a unit of Tata Group, India's
biggest conglomerate, formed a technological partnership
with Honeywell International of the U.S. for military-use
navigation systems. Bharat Forge, a major auto parts
maker, has begun developing self-propelled artillery and
howitzers using its metalworking technology, the
company's forte. Larsen & Toubro, India's largest
construction and engineering company, is looking to
quadruple annual sales at its defense division to $1 billion
in five years.
In August, the Indian navy commissioned the INS
KOLKATA, a guided-missile stealth destroyer. One of the
largest Indian-made warships, the vessel is equipped with
the latest anti-air and submarine weaponry. At the
commissioning ceremony, held at a naval base in the
LCA Naval Version achieves Milestone
Source: The Time of India
21st December 2014
BENGALURU: The first prototype of the light combat
aircraft (LCA) Tejas' Naval version — LCA NP-1 —
completed its maiden flight as part of the carrier
compatibility tests at the shore-based test facility INS
HANSA in Goa. LCA-Navy is the second Ski Take Off But
Arrested Recovery (STOBAR) carrier-borne aircraft in the
world, after a Russian deck based aircraft. And, this will be
the only Carrier borne Fighter aircraft in the Light
category.
The flight in Goa comes more than two years after the
aircraft completed its maiden flight on April 27, 2012.
Attempting to build such an aircraft for the first time, the
Indian Navy and team LCA even got help from the United
States Navy, which audited the aircraft in the initial stages.
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Maritime Policy & Law
leave and overtime payments not in line with legal
requirements. TISS also points out the absence of an active
and strong trade union representing the interests of
migrant workers.
Shipping Industry Modifies Clauses in Contracts
for Ebola Risks
Source: Reuters
17th December 2014
UNHCR: Best Remedy for Sea Migrations is
tackling Root Causes
Some of the shipping industry‘s biggest trade
associations are modifying freight contracts to reduce
commercial exposure for companies whose ships travel to
countries affected by the Ebola outbreak and to protect
crews from the deadly virus. Uncertainty about the spread
of Ebola is adding to legal and financial issues for those
involved in shipping oil, cocoa and minerals from the
region. Last month, Reuters reported that individual
shipping lines and traders were starting to tweak contracts
to protect themselves.
INTERTANKO, whose independent members own the
majority of the world‘s tanker fleet, has now introduced an
Ebola clause including stipulations to find alternative ports
if there is risk to the crew. Charterers will also be liable for
any costs if a vessel is quarantined. “We have seen clauses
designed to deal for example with war risks where the
drafter has simply crossed out ‘war‘ and replaced it with
‘Ebola‘ without much thought. That kind of approach can
only lead to uncertainty and disputes,” INTERTANKO‘s
general counsel Michele White said.
Source: World Maritime News
18th December 2014
UNHCR has warned that the international community
was losing its focus on saving lives amid confusion among
coastal nations and regional blocs over how to respond to
the growing number of people making risky sea journeys in
search of asylum or migration.
High Commissioner for Refugees António Guterres said
some governments are increasingly seeing keeping
foreigners out as being a higher priority than upholding
asylum. “This is a mistake, and precisely the wrong
reaction for an era in which record numbers of people are
fleeing wars,” Guterres said. “Security and immigration
management are concerns for any country, but policies
must be designed in a way that human lives do not end up
becoming collateral damage.” “The real root causes have to
be addressed, and this means looking at why people are
fleeing, what prevents them from seeking asylum by safer
means, and what can be done to crack down on the
criminal networks who prosper from this, while at the same
time protecting their victims. It also means having proper
systems to deal with arrivals and distinguish real refugees
from those who are not.”
Indian Shipbreaking Workers in Dire Conditions
Source: World Maritime News
22nd December 2014
The working and living conditions at the shipbreaking
yards of Alang, India, remain alarmingly poor, argues a
new study published in Indian Social Science journal, the
Economic & Political Weekly.
The research was commissioned and financed by the
National Human Rights Commission of India (NHRC) and
was coordinated by Dr Geetanjoy Sahu from the Tata
Institute of Social Sciences (TISS). Official figures accessed
by TISS report at least 470 fatal accidents in the yards since
they were first set up in 1983, making shipbreaking one of
the most dangerous occupations in India. Indian human
rights advocates referred to in the report estimate however
that there is a far higher number of victims, especially
because the long-term consequence of unsafe shipbreaking
activities, including occupational diseases such as cancer,
and resulting deaths are not taken into consideration by
the authorities. The study finds that the “costs to workers‘
health and the environment are alarming” while the profit
margins for both the yard owners and the contractors
providing the labour force are extremely high.
Dr Sahu reports that the approximately 35,000
unorganised migrant workers at Alang continue to live in
shanty dwellings without adequate facilities for drinking
water, sanitation and electricity. In addition to serious
health and safety risks, the researchers documented delays
in the payments of wages, unauthorised deductions, unpaid
Tonnage Tax – Maintenance Of Prescribed Levels
of EU-Flagged Vessels
Source: Cyprus Local News
30th December 2014
The Merchant Shipping (Fees and Taxing Provisions)
Law(1) provides that, in order to qualify for the tonnage tax
scheme, EU-flagged ships (ships lawfully registered in and
flying the flag of an EU member state or any other
contracting party to the European Economic Area
Agreement) must account for a specified minimum
percentage of the taxpayer‘s fleet. This reference share is
calculated at the date of entry to the tonnage tax scheme.
The tonnage tax law requires the Department of Merchant
Shipping (DMS) to assess the EU-flagged share of each
participant in the tonnage tax scheme in the third year
from the date of opting to be taxed under the tonnage tax
system.
The DMS recently announced the arrangements for the
review as at December 31 2014, which will cover companies
that entered the tonnage tax system on January 1 2012 or
in the 12 months previously.
No company or group of companies whose EU-flagged
share at the time of assessment is less than its reference
21
share and is no greater than 60%, may introduce any
additional non-EU ships into the tonnage tax system until
it increases its EU-flagged share to at least the level of its
reference share. However, the tonnage tax law(2) and the
Tonnage Tax (Special Provisions for the Calculation of the
Community Flagged Share) Notification of 2010(3) also
allow owners, charterers or managers to introduce
additional non-EU vessels if the aggregate share of EUflagged ships in their individual sector has increased
compared to the reference date. Taxpayers taking
advantage of this provision are subject to a surcharge of
10% on the total amount of tonnage tax payable for all
qualifying non-EU ships in the fleet.
for all government cargoes unless they do not have the
capacity to do so.
“We projected that in the next four years, we can create
employment for five million people. For every ship, there
will be shipping company, ship chandler, water supplier,
grease supplier and also food supplier.
“ When we say we are creating five million jobs in four
years in the industry this is what we mean,” he said.
According to him, apart from the cargo available in the
Cabotage catchment‘s area, the retired Navy Captain noted
that the cargo in the oil and gas sector also provide ample
opportunity for the growth of local capacity.
He further explained that should the federal
government pay attention to the industry, the sector could
employ more than five million in four years, especially with
the new collaboration with the management of the Nigerian
Maritime Administration and Safety Agency, NIMASA. He
noted that developed nations that provide employment for
their citizens do so through the efforts of the private sector.
He stressed that dependence on government for
employment for Nigerian youths in the past has been a
major problem for the nation‘s economy.
EU Backs Maritime Security Action Plan
Source: World Maritime News
19th December 2014
EU ministers have supported the Action Plan, part of
the EU‘s Maritime Security Strategy adopted in June 2014,
which takes a cross-border and cross-sector approach to
confronting the seaborne perils. The Maritime Security
strategy and its action plan is a response to the new threats,
such as the criminal smuggling of people, arms, or drugs,
which is now more organised and more international than
ever; illegal fishing; and terrorism and cyber-attacks. The
Action Plan covers both the internal and external aspects of
the Union‘s maritime security. Its guiding principles are a
cross-sectorial approach; rules-based governance of the
global maritime domain; respect for existing instruments
and competences, as well as maritime multilateralism. The
implementation of the 130 specific actions foreseen in the
Action Plan will be carried out by EU institutions and by
EU Member States.
India’s Modi Says will Change Rules, Laws for
Manufacturing
Source: Reuters
30th December 2014
Indian Prime Minister Narendra Modi said his
government was ready to change rules and laws to speed
up manufacturing under the “Make in India” programme,
despite political opposition to reforms.
India passed an emergency executive order earlier in
the day to ease land acquisition rules that are partly blamed
for delays in industrial projects worth up to $300 billion.
“Need to change laws – we are ready. Need to change rules
– we are ready. Need to speed up processes – we are
ready,” Modi said at the concluding session of a workshop
on Make in India. “We need to implement changes on the
ground.”
There has been criticism in recent months that Modi
has yet to use his strong electoral mandate to implement
reforms needed to pull India out of an economic growth of
under five percent for two straight years.
Political opposition and the government‘s minority
position in the upper house of the parliament have also tied
Modi‘s hands, forcing him to resort to executive orders to
raise foreign participation in insurance ventures and allow
private companies mine and sell coal.
The pro-business leader said there was a need to change
the government‘s culture of “ABCD” – avoid, bypass,
confuse and delay – to that of “ROAD” – responsibility,
ownership, accountability and discipline. Bureaucratic
delays and red tape are two of the reasons holding back
businesses in India. The country slipped to 142 in the
World Bank‘s latest ‘ease of doing business‘ rankings,
something that Modi has vowed to correct.
UK - Launch of Maritime Growth Study
Source: Bryant’s Maritime Consulting
24th December 2014
The UK Department for Transport (DfT) posted the
speech delivered by The Right Honorable John Hayes MP
launching the maritime growth study, which will assess the
UK maritime industry and identify options for making it
more competitive.
Nigeria: ‘Shipping Industry Can Create 5 Million
Jobs in 4 Years’
Source: Vanguard
30th December 2014
The newly elected president of the Nigeria Shipowners
Association, NISA, Captain Niyi Labinjo has said that the
shipping sector of the maritime industry can generate five
million jobs over the next four years.
Labinjo, who disclosed this in an interview with
Vanguard in Lagos, said the Federal Government only
needs to implement the clause in the Cabotage Act, which
empowers local ship owners to have option of first refusal
22
Maritime Environment
Industry Planning and Research Institute. He estimated
that the entire steel industry would have to spend 90-110
billion yuan (US$14-$18 billion) on improving their
facilities in order to meet the requirements. The
improvement projects are also expected to raise operation
costs by 80 billion yuan (US$13 billion) per year due to
maintenance fees and other expenses, he said. Yet at a time
when the steel industry is experiencing a slowdown, steel
producers have shown little interest in such projects
though, the Beijing-based China Times (not our sister
paper) reported. In 2013, the average profit margin of
China's steel industry was only 2.16%, with 23.4% of
manufacturers operating at a loss. Xu Xiangchun, an
executive at steel market data vendor Glinfo.com, stated
that the steel industry was adopting a wait-and-see
approach towards the new law because it has yet to take
effect.
If the law is stringently enforced, it will have a
tremendous impact on the steel industry, Liu predicted.
LR Supports Application by Two Chinese Recycling
Facilities to Join European List
Source: Lloyd’s Register
22nd December 2014
LR‘s initial verification of the Ship Recycling Facility
Plans for both Zhoushan Changhong International Ship
Recycling Co. Ltd. and Jiangyin Xiagang Changjiang Ship
Recycling Yard – the first non-EU applications – is a vital
first step towards the facilities‘ inclusion on the European
Union‘s list. The official documents for the application
were presented at a ceremony at the Berlaymont offices of
the European Commission in Brussels by Mr Li Hongwei,
owner of Zhoushan Changhong International Ship
Recycling Co. Ltd. and Jiangyin Xiagang Changjiang
Shiprecycling Yard, Mr Tom Peter Blankestijn of
Sea2Cradle, and LR‘s Jim Heath. With a capacity of 1.1
million LDT (light displacement tonnes) and 1.2 million
LDT respectively, the Zhoushan and Jiangyin yards are the
largest ship recycling facilities in the world. LR is now able
to look forward to helping Zhoushan and Jiangyin
complete their application process to the European
Commission.
IMO Applauds ICS Changing Stance on Ballast
Water
Source: World Maritime News
24th December 2014
Incalculable Loss to Our Fish Habitat
IMO Secretary-General Koji Sekimizu has welcomed the
reconsideration by the International Chamber of Shipping
(ICS) of its position towards the ratification by
Governments of the International Convention for the
Control and Management of Ships‘ Ballast Water and
Sediments, 2004 (BWM Convention). During their
meeting, Secretary Sekimizu said that governments, and in
particular those with a large merchant shipping tonnage
under their flag, should take action to ratify the BWM
Convention as soon as possible. Adopted in 2004, the
International Convention for the Control and Management
of Ships‘ Ballast Water and Sediments (BWM Convention)
addresses the problem of aquatic organisms and pathogens
being released into non-native environments after being
transported around the world in ships‘ ballast water.
Source: The Sunday Leader
22nd December 2014
In spite of many discussions held in both countries, the
fishing issues faced by Sri Lanka due to the encroachment
of Indian vessels entering its territorial waters still remain
a huge problem. Indian fishermen prefer to even risk being
arrested and enter the Sri Lankan territorial waters in
order to take their chances in making the most of the
abundance of fish in Sri Lankan territorial waters.
However, this situation has not been a welcome sign for the
Sri Lankan fishermen. Fishermen from Sri Lanka and
neighbouring India, who both share the Indian Ocean, have
a history of fishing illegally from each other‘s territorial
waters. However, Indian trawlers continue encroaching on
Sri Lankan territorial waters, causing losses in excess of
US$ 59.18 million annually to Sri Lanka. Damage to fish
habitat and eco-system, both short-term and long-term, is
incalculable.
Source: PortNews
28th December 2014
New Environmental Law to Affect China’s Steel
Industry
The Australian Government will move to ban super
trawlers from Australian waters, Senator Richard Colbeck
Parliamentary Secretary to the Minister for Agriculture
announced. Super trawlers were defined by Labor and
ENGOs as factory freezer vessels more than 130 metres –
the Coalition will adopt that definition and such vessels will
not be permitted to fish in Australian waters. “This
Government will introduce regulations under the Fisheries
Management Act to give effect to this decision,” Senator
Colbeck said.
Source: Want China Times
24th December 2014
China's revised Environmental Protection Law which
some have dubbed "the strictest in history" will take effect
on Jan. 1. No steel manufacturer in China has met the
requirements stipulated in the new law so far, according to
Liu Tao, a senior engineer at the China Metallurgical
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Super Trawlers to be banned from Australian
Waters