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

(1-15 November 2014)
Volume: 02 Issue No: 22
01
Tackling a crisis: All fair in award of LNG
terminal, says PQA chairman............. 01
Gadani Power Project: Challenges..... 02
Fresh Bait: Fishermen Free to Fish
Again.................................................. 03
04
China's Largest Oil Tanker Put into
Use.............................................. 05
Abu Dhabi's KhalifaPort reaches Two
Million TEU Milestones..................... 06
Indonesia Plans Three New Ports........ 07
12
Iran Keen to Invest in Indonesia's O&G
Sector................................................. 12
Vietnam to Build Big Oil Rigs........... 13
14
Indian Navy Ship Scraped by Merchant
Vessel................................................. 14
Navy Ship Suffers Minor Damage in
Collision.............................................. 16
Sri Lanka committed to Fight Sea
Piracy................................................. 17
Fire Breaks Out Aboard 'Unlucky' Russian
Anti-Submarine Ship................................... 18
21
Ship-Breakers Left Out of Insurance
Cover.............................................. 21
Old Shipping Laws Need to be Changed:
Gadkari................................... 22
23
IMO Set to Adopt Polar
Code.................................................. 23
Sub Editor: Tabassum Naz
Maritime News of Pakistan
Industry people say that Engro already has a chemicalhandling terminal at the site, helping it keep the cost low
and drive out competition – something which appears fair
but is akin to cornering the market. "Engro Vopak
(chemical) terminal has a completely different costing.
They had to dredge, import new equipment and build a
42km long pipeline for LNG.
They will only be sharing the trestle," said Akhtar. "In
any case, how can you deny anyone the advantage of
presence? We needed gas in the fastest possible time. Are
you going to say no to Engro just because they have a lower
tariff?" Some people point out the changes PQA has made
in its master plan to accommodate ETPL as an out-of-theway favour. "Our boards of directors have the authority to
change our master plan," the PQA Chairman said. The
second terminal, which has just recently been tendered by
the Sui Southern Gas Company, will be located at Chhan
Waddo, a creek located right across the channel from
ETPL.
Some investors have pointed out that detail of
agreements and contractual obligations of the terminal
operator with government have been kept under tight
wraps, leaving everyone to guess what they should offer in
bid for the second terminal. Ideally, the determination of
terminal‘s tariff should have gone through Oil and Gas
Regulatory Authority (Ogra) that would have put
everything on its website for public‘s feedback. But that did
not happen. "There is a thing called a business secret. If
ETPL can make profit at 66 cents then where is the
problem? To indulge in how could they make money at 66
cents doesn‘t make sense," said Akhtar.
He also says that he has gone through the LNG Supply
Agreement. The PQA hopes to make around Rs1 billion a
year in fee from the LNG import. "We are not expecting
more than that in the first year because just 40 to 45 ships
are expected. It might go up later."
From Editor's Desk
The growth of Maritime Sector, both in Port
Development and in the shipping, is seen with greater
vigor. Investments are being made to build new and
efficient ports, to receive bigger ships. On the other
hand, piracy at sea also sees its growth in the Far East
region. The news of release of Indian Seafarers after four
years is welcomed however, the narration of the ordeals,
which they had undergone, leaves horrifying impression.
One fails to understand why maritime nations do not
take actions against the pirates, as their hideouts are
known to the released captives.
Overt and Covert action by Indian navy could have
been taken against the pirate‘s hideouts on Somalian
land. It is because the pirates go unpunished, that the
menace of piracy at sea continues.
Captain Tariq Masood
Tackling a crisis: All fair in award of LNG terminal,
says PQA chairman
Source: Express Tribune
13th Nov 2014
KARACHI: With a deepening energy crisis and the
government struggling to find a quick fix, there is no
shortage of those who say the opportunity is ripe for
shrewd businessmen to make money. And much of their
attention is on Liquefied Natural Gas (LNG). Shortage of
gas, its theft and wastage are reasons why Pakistan finds
itself in such a precarious economic situation. But there is a
near consensus that importing LNG is imperative if
factories need to be run and homes to be heated in winters.
One of the largest Pakistani corporations, Engro, controlled
by Hussain Dawood, is set to finish work on its terminal in
two to three months to receive the first gas shipment. A lot
of questions about the deal are being asked and many are
centred on Port Qasim Authority (PQA) where the LNG
terminals will be located – one that is being built by Engro
and another one to be put to bidding in late December. On
his part, the PQA Chairman Agha Jan Akhtar talks about
the subject in clear terms.
In an interview with The Express Tribune, he said that
most of what is being said about LNG is hearsay and
rumours. "Engro Elengy Private Terminal Limited (EPTL)
has no advantage in terms of cost over other proposed
terminals," he said, referring to reports that no other
terminal operator could match Engro‘s 66-cent tariff. ETPL
was awarded the terminal contract on the basis of its lowest
bid. The only other short listed company was Fauji
Foundation.
Nishan-I-Imtiaz for Naval Chief
Source: Express Tribune
6th Nov 2014
ISLAMABAD: President Mamnoon Hussain, on the
advice of the Prime Minister approved conferment of the
Nishan-i-Imtiaz
(Military)
medal
upon
Admiral
Muhammad Zakaullah, Chief of the Naval Staff. The
approval was given under Article 259(2) of the
constitution.
Attempt to Smuggle Iranian Diesel, Petrol Foiled
Source: Dawn
11th Nov 2014
KARACHI: The customs intelligence and the Pakistan
Maritime Security Agency (PMSA) foiled an attempt to
smuggle Iranian diesel and petrol into the country. The
value of the consignments was estimated at Rs37 million.
The customs intelligence, Karachi, received information
1
that Iranian diesel and petrol were being smuggled into the
country through sea routes. The PMSA and the customs
intelligence stepped up their surveillance and launched an
anti-smuggling operation in the seas. A corvette and fastresponse boats were deployed to monitor the sea routes.
The heightened alert led to the seizure of five launches that
were carrying smuggled diesel and petrol. Thirty-five
members of the crew were taken into custody. A search of
the impounded launches yielded 166,373 litres of illegal
diesel and petrol. An FIR was lodged against the crew.
Keeping it shipshape: NTUF
Standards for Shipbreakers
Wants
Safety
Source: Express Tribune
2nd Nov 2014
KARACHI: The National Trade Union Federation
(NTUF) has demanded urgent improvements in the safety
standards for the workers of Gadani‘s shipbreaking
industry. "Thousands of workers are forced to work as
slaves in one of the worst workplaces in Pakistan," said
NTUF deputy general secretary Nasir Manzoor and Gadani
Shipbreaking
Mazdoor
Union
president
Bashir
Mehmoodani in a joint statement. "They face potential
death threats every day because there are no safety
measures in place."
In the last three days, 15 workers have been injured in
two accidents at Yard 107. The statement claimed that such
accidents have been growing in frequency but there were
still no emergency treatment facilities for the more than
15,000 workers at the Gadani shipbreaking yards. The
union leaders said that most of the workers had no social
security or old-age registration, no appointment letters and
no right to elect a collective bargaining agent. They added
that there was no observance of the occupational safety and
health standards outlined in international labour and
shipbreaking conventions.
Manzoor and Mehmoodani also mentioned that an
NTUF delegation had met the Balochistan chief minister
last year but, despite his promises to tackle the issue,
nothing had been done. They called for the arrests of the
owners of yards where accidents occur due to negligence
and asked the government to compensate injured workers
and bear the costs of their treatment.
Cyclone Warning Centre to be Set Up in Karachi,
Gwadar
Source: Express Tribune
1st Nov 2014
ISLAMABAD: The Pakistan Meteorological Department
(PMD) plans on setting up a Tropical Cyclone Warning
Centre (TCWC) in Karachi and a Marine Meteorological
office in Gwadar.
They also plan on having a backup in Islamabad in
order to monitor tropical cyclones by establishing a reliable
network for an early warning system and to provide
meteorological services to the shipping industry. At the
moment, the PMD has a facility for forecasting tropical
cyclones and providing routine marine meteorological
services to fishermen and the shipping industry but it has
been running as a project, not a permanent section of the
PMD, said an official of the PMD while talking to The
Express Tribune.
An official from the PMD who wished to remain
anonymous claimed that separate buildings have been
constructed for the project in Karachi and Gwadar. He said
that state-of-the-art equipment was being used and the
PMD staff was running the project. He added that their
posts have yet to be approved and this was creating
problems for the PMD in terms of managing and day-today monitoring.
PMD‘s director-general (DG) Hazrat Mir claimed that
this project was part of the approved early warning and
response system. He said that it includes the collection and
preparation of information and possible risk analysis from
the tropical cyclone for the region under its influence. He
added that the aim of the project was to set up a system to
track cyclones, issue warnings and dissemination of the
information to the public and authorities. It, he claimed,
would also help minimise the cyclone‘s destructive effects –
save property and lives.
He also said that the project had enhanced the
capabilities of the PMD in the field of prediction of cyclone
activities, hydrology, meteorology, climatology and cyclonic
storm studies and will enhance the knowledge of marine
and tropical storms.
The DG claimed that according to figures from the
Pakistan Fisher Folk (PFF), around 20,000 boats – each
carrying 10 to 15 crew members were in deep sea waters
while five to 10,000 boats were in shallow waters near the
coastal areas of Sindh and Balochistan. Their lives, he said,
were saved due to early warnings issued by the TCWC
regarding Cyclone Nilofar on October 26. The TCWC
project was initiated after the 2007 cyclone. It was
supposed to be completed in two years but due to a
shortage of funds it took six years to complete and became
functional in 2013.
Gadani Power Project: Challenges
Source: Dawn
10th Nov 2014
The Gadani power park is not likely to take off in the
near future because of issues in potential investors‘ due
diligence.
The power park of 6,600MW cumulative capacity,
based on imported coal, was launched on July 26, 2013 for
execution on a fast-track basis. But the government has
failed to achieve substantial progress on the project and
also in attracting potential investors. Chinese investors
were initially willing to set up six plants in the power park
after having signed various MOUs, though in a nontransparent manner, as the procedure for the proposed
investment had been violated. Later on, the government
decided to invite expressions of interest (EOIs) through the
Private Power and Infrastructure Board (PPIB) on the basis
of international competitive bidding. However, only six
EOIs were received. These are from China Gezhouba Group
Co, China Machinery Engineering Corp, China Huadian
Engineering Co, Harbin Electric International Co China,
ANC Holding UAE (Arab National Construction) and
Genting Power Malaysia.
Interestingly, only Harbin Electric and Genting are
involved in the core business of coal-power generation, and
all others are either hydropower construction companies or
engaged in trading, real estate and contracting. Excluding
one, all other companies had earlier signed MOUs.
The project, envisaged to be developed primarily with
Chinese technical and financial assistance, was included in
the Pak-China economic corridor programme. According to
recent reports, however, China has excluded it from the list
of corridor projects. A Qatari investor and royal family
enterprise, Al-Mirqab Capital, had also signed an MOU,
along with the Sinohydro Corporation of China as their
technical partner, for the construction of two 660MW
projects at the park. Interestingly, they decided to set up
the project at Bin Qasim under a 'short-term capacity
addition initiative‘ of the power policy, which allows
investors to use any location, fuel and technology.
The PPIB has issued a letter of interest (LOI) to the
joint venture, whereas Sinohydro, a hydropower
construction company, has no experience of building coalbased power plants. A detailed site selection study has not
been conducted. Some of the Chinese companies have
doubts about the sustainability of the projects, having
concluded that Gadani might not be a suitable site for the
proposed projects as there is no infrastructure
development in the area.
Taking cue from the Qatar-China joint venture, the
other investors are also considering Karachi as a viable site.
Gadani does not have the capacity to transmit electricity
from the south to load-centres in the north through the
national grid, and policy arrangements for dispersal of
power are still uncertain and unclear. The first two power
plants of 660MW each were to be established at the power
park by the government from its own resources to instil
confidence and security among prospective investors, who
were to construct the remaining eight units of 660MW
each. Equity was to be provided by the government, while
the rest of the funding was to be arranged as foreign loan.
Accordingly, in September 2013, Genco Holding Co
Ltd/Genco-IV initiated the appointment of consultants for
preparation of the feasibility report, environmental study
and bidding documents etc. The consultants were also to
select advanced technology on the least-cost basis.
However, the government — within a few months of the
power park‘s launch — dropped the proposed public sector
investment and decided that all 10 units will be developed
by private investors. Based on a feasibility study conducted
by the Japan International Cooperation Agency (Jica),
Genco was also supposed to develop two 660MW projects
on Lakhra coal, but this project was also shelved in
February.
On the other hand, the government was keen to seek an
exemption from PPRA rules to exempt Chinese investors
from procurement procedures and international
competition. Indicative costs of IPP projects are in the
range of $1.5m-1.74m per megawatt. This is agreeable to
the government, whereas current international prices are
not more than $1m/MW for supercritical boiler technology.
In March, the master plan for the entire park arrangement,
costing over $570m, was launched.
The project‘s feasibility and PC-I have been prepared
and field investigations, soil, geo-tech and other surveys
have been conducted. The levelling and grading of the land
demarcated for two units is said to be completed.
Ironically, the required 5,000 acres of land has not been
acquired yet.
Port Qasim Surpasses Revenue
Rs1027m, Customs Duty by Rs 681m
Target
by
Source: Custom Today
5st Nov 2014
KARACHI: The Model Customs Collectorate Port Qasim
has collected revenue of Rs 21837.29 million in the month
of October 2014 in share of different heads including
Customs Duty (CD), Sales Tax (ST), Federal Excise Duty
(FED) and Income Tax (IT).
According to details, MCC Port Qasim has collected
revenue of Rs 21837.29 million in the month of October
2014 against its target of Rs 20809.91 million and
surpassed the revenue target for the month of October by
Rs 1027.38 million. As per the revenue statistics, the MCCPort Qasim has collected Rs 5125.41million in share of
Customs Duty against its target of Rs 4444.36 million with
an increase of Rs 681.05 million.
The MCC-Port Qasim has collected revenue of Rs
13566.68 million in share of Sales Tax in the month of Oct
against its set target of Rs 13525.88 million with an
increase of Rs 40.80 million. Similarly, the MCC Port
Qasim has collected revenue of Rs226.61million in share of
FED in the month of Oct against its set target of
Rs187.82million with an increase of Rs38.79million. The
MCC-Port Muhammad Bin Qasim has collected revenue of
Rs2918.59million in share of Income Tax in the month of
Oct against its set target of Rs2651.85million with an
increase of Rs266.74million.
The authorities concerned have expressed their
satisfaction over the revenue collection of MCC-Port Qasim
for the month of Oct-2014 and hoped that the Collectorate
will continue such efforts for achieving revenue targets in
the future as well.
Fresh Bait: Fishermen Free to Fish Again
Source: Express Tribune
3th Nov 2014
KARACHI: Thousands of fishermen who live and work
along Sindh‘s coastal belt were allowed to go for deep sea
fishing after the provincial government lifted a ban it had
implemented on October 30 as a precautionary measure.
According to the Pakistan Fisherfolk Forum (PFF) there
are over 600,000 fishermen in Sindh who were limited to
fishing on the beach due to Cyclone Nilofar. The fishermen
of Karachi, Thatta, Sujawal and Badin, have started going
into the sea and said that their catch has not been
disturbed by the roughness of the sea.
3
Ports & Shipping
India's Largest Shipping Company Selects New UK
Agent
million tonnes of cargo. "At present, our berths are intact
on surface, but we don‘t know about the under water
damages, if any. Hence, we are planning to conduct
underwater inspections very shortly," he said. The port‘s
southern breakwaters surface was damaged, and the
estimated loss could be around Rs 100 crore.
Source: Handy Shipping Guide
1st November 2014
DKT and Allseas Tie Up and Secure New Business UK –
INDIA - DKT Allseas Shipping has been appointed as the
UK liner agent and representative for the Shipping
Corporation of India (SCI). Taking over the agency with
effect from November 1, DKT Allseas Shipping will be
based in Tilbury, Essex. DKT, otherwise known as the De
Keyser Thornton Group, was founded in Antwerp in 1853,
and has many years of experience in ship agency and
freight forwarding activities and earlier this month
seemingly tied up in the UK with the Nottingham based
Allseas Group, with Allseas Global Logistics Managing
Director Darren Wright also heading up the new
company.The new agency agreement is based on a
longstanding relationship, DKT having been SCI's agent in
Belgium since 2008. The UK venture will add an in-depth
knowledge of the UK market to the services it currently
offers. SCI, India's largest shipping company, operates two
services a week into the UK, both calling at the Port of
Felixstowe in a vessel-sharing agreement. Last year, SCI's
services carried a total of 41,000 TEU in imports and
exports into and out of the UK, and 25,000 TEU into and
out of Antwerp. Philip Van Tilburg, CEO of DKT,
commented:"We hope that this collaboration opens the
door for other ship agency opportunities in the near
future."
Statoil Marks 500th Delivery of LNG
Source: energyvoice
1st November 2014
Statoil has marked its 500th delivery of cargo from its
Snovhit offshore development in the Barents Sea. The
ARCTIC VOYAGER will carry a cargo of LNG (Liquified
Natural Gas) from Melkoya to Aliaga in Turkey. Since startup in 2007, more than NOK 80billion worth of LNG has
been dispatched from the island in Norway.Knut Gjertsen,
vice president for operations on Snøhvit, said: "This is a
special day for the Snøhvit organisation and for Statoil. A
lot of hard work has gone into all these 500 cargoes.
"Snøhvit has also been a challenge. We‘ve worked long
and systematically on the plant, and with the organisation,
in order to stabilise operations."We are now beginning to
see the results. During the past 15 months we‘ve delivered
our best results for safe and regular production."We work
hard and systematically every single day to continue
delivering good results."Statoil sells LNG to Europe, Asia
and North and South America, with the gas being
transported in liquid form in special vessels which sail
across the Atlantic and through the Suez Canal.LNG
currently accounts for 10% of the global gas market.
Vizag Port May Miss Handling Target: The Port
Had Set a Target to Handle 63 Million Tonnes of
Cargo This Fiscal
Capesize Market is on “Rally” Mode: More Deals
for Second Hand Vessels on the Horizon
Source: Business Standard
1st November 2014
Source: Hellenic Shipping News
1st November 2014
Visakhapatnam port, one of the major ports in India, is
likely to miss its cargo handling target during the current
financial year in view of the devastation caused by Cyclone
Hudhud. The port had set a target to handle 63 million
tonnes of cargo this fiscal. In the first half, it achieved a
growth of 6-7 per cent compared with the corresponding
period year. However, because of the cyclone, it looked
difficult to reach 60 million tonnes by March, said MT
Krishna Babu, chairman, Visakhapatnam Port. Heavy
cyclone had damaged the oil berth at the outer harbour and
it would take about six months to restore this thereby
impacting crude oil imports, he stated. The port needs to
invest more than Rs 110 crore in repairing the berth.
"Though for HPCL Refinery we have an alternative
mooring berth facility, here we can handle only very large
crude carriers, which have a carrying capacity of 250,000
tonnes. The port would be able to handle smaller vessels
only after six months," he said. The port also had to declare
seven days as non working days and later its handling
started at minimum levels. As a result, it lost nearly 2
Over the course of the past few days, China‘s restocking
of iron ore has led to a boom for the dry bulk market and
more specifically the Capesize segment, while more could
be on the way as a result of Brazil‘s expected increase in
iron ore exports as well. Yesterday, the Baltic Dry Index
was up by an impressive 110 points, to reach 1,395 points.
It‘s yet another indication of the expected recovery of the
market, which was slated for the fourth quarter of the year.
In a recent note, shipbroker Allied Shipbroking noted that
"Capesize charter rates increased significantly with the BCI
surpassing the level of 2000 points after 1 month and TCA
increasing by 86% w-o-w. This spike seems to have been
caused initially by the increased stems brought about by
Vale into the Atlantic basin these past two weeks, helping
clear position lists there, while this week we also witnessed
a sudden surge in activity on the Aussie-China route".
It added that the furiousness in Capesize rates seems to
have tugged along rates for Panamaxes, which have now
surpassed the USD 9.000/day mark, level last seen in
March of this year. Meanwhile, "S&P-wise, 2 sales on the
4
Capesize segment noted significant reduction on the asset
values of vessels. More specifically, the BLUE MCKINLEY
(179k, 2011, S.Korea) and the CAMILLA BULKER (179k,
2009, S.Korea) have been reported sold for USD 44.5 Mill
and USD 40.5 Mill accordingly. Looking back through the
year, the sale of the ex BLUE MANASLOU (179k, 2011,
S.Korea) at USD 52 Mill during June and the sale of
BERGE MCCLINTOCK (179k, 2012, S.Korea) in the region
of USD 51.5 Mill, that was finalised in September, indicate
a serious correction on the Capesize vessels prices.
On the handy sector, it has been reported that PAOLA
(32k, 2004, Jap) has been sold for low USD 12 Mill, basis
SS-DD due.
The latter price appears to be firm,
considering that the ex KWELA (32k, 2002, Jap) had been
sold for USD 10.7 Mill one month ago, fitted with a set of 3
generators.On the MR sector, the downward trend still
continues, although still at a slow pace. Last week the sister
vessels RISANGER and RAVNANGER (46k, 2000,
S.Korea) have been reported sold to Greeks in the region of
USD 20.5 Mill en bloc", Allied Shipbroking said.In a
separate report on the shipbuilding market, Clarkson
Hellas said that it was "a relatively quiet week in the
newbuilding market, with reported business focussed away
from the more conventional sectors and instead in the Car
Carrier, Gas and Passenger markets.
international shipping", said Patrick Verhoeven, Secretary
General of ECSA, who spoke on behalf of the European
industry delegation, "The Chinese government started last
year a promising Free Trade Zone pilot project in Shanghai
which is expected to extend to other ports. But foreignowned shipping companies are still not permitted to
transport international cargo between Chinese ports. Only
vessels that are ultimately owned by a Chinese company
can do so, even if they fly a foreign flag. Lifting this
discriminatory restriction will also benefit China, as it will
not only bring increased revenue and more efficient
utilisation of Chinese ports but also reduce transit times
and transportation costs to and from the country."
British Navy Ship Arrives to Help „Kick Ebola out'
of Sierra Leone
Source: japantimes
1st November 2014
A British navy mission said it was nervous but ready "to
see that Ebola is kicked out" as it arrived in Sierra Leone to
treat victims of the deadly virus. The RFA ARGUS was
cheered by dockworkers and other vessels as it completed a
10-day voyage from southwest England to Freetown, the
capital of its former colony."There was lots of anxiety from
us as well as from our relatives and loved-ones about
coming to Sierra Leone to fight the Ebola virus," Cmdr.
Ross Spooner, from Royal Naval Air Station Culdrose, told
AFP."We have taken all precautions and understood the
situation. Berthing in Freetown today, the mood of the
personnel is one of a desire to get started on the job and to
see that Ebola is kicked out."
The civilian-staffed military medical support ship has
brought materials to build medical units and help keep
them supplied.Some 80 medics and 80 marines are among
the 350 people on board, bringing the total British
deployment to fight Ebola in Sierra Leone to about 900
people.It arrived with 32 pickup trucks, three Merlin utility
helicopters, air crew and engineers to provide transport
and support to medical teams and aid workers, said Donal
Brown, head of the British Ebola Task Force in Sierra
Leone."Argus … will be in Sierra Leone as long as it is
needed. We are here to help the government of Sierra
Leone to get on top of Ebola, so we will be here until that
happens," he told reporters at the Queen Elizabeth II
quay.Troops with landing craft will escort personnel ashore
and protect teams deployed on the ground.
China's Largest Oil Tanker Put into Use
Source: Xinhua
7th November 2014
China‘s largest oil tanker, with vessel displacement 7
times that of the country‘s only aircraft carrier "Liaoning",
was delivered in south China‘s Guangzhou City.The 333meter tanker "KAIGUI" was built by Guangzhou Shipyard
International Co. Ltd. for China‘s largest offshore oil
shipping firm. The vessel, with a dead weight of 320,000
tonnes, can circle the equator without refueling. It can
accommodate helicopter take-off and landing and is
equipped with automatic control system, which can enable
unmanned navigation.
European Shipowners Call for Free Transport of
International Cargo between Chinese Ports
Source: ECSA
1st November 2014
The 11th Implementation Meeting of the China-EU
Maritime Transport Agreement, hosted by the Water
Transport Bureau of the Chinese Ministry of Transport,
was held in Haikou from 20 to 22 October. The agenda
featured an exchange of views on shipping policy
developments in China and the EU as well as a discussion
on issues raised by the Chinese and EU shipping industries.
Official delegations consisted of representatives of the
Chinese Ministry of Transport, the Directorate-General for
Transport and Mobility (DG Move) of the European
Commission and EU Member States. Industry delegations
were headed by the China Shipowners‘ Association and
ECSA.
"The key point for European shipowners in these
maritime talks is to open up market access barriers for
Ship runs aground near Stockholm, Spilling oil
among Pristine Islands
Source: latimes
2nd November 2014
A ship carrying 52 tons of oil in the Baltic Sea ran
aground off Stockholm‘s sprawling archipelago and began
leaking its cargo into the intricate network of islands and
inlets, an online news agency reported. The ship‘s crew was
working to transfer the oil from the container damaged by
the grounding into an intact reservoir on the vessel, the
Local English-language agency reported. Neither the ship‘s
name nor country of registry were immediately reported.
5
Although 52 tons of oil is a relatively small cargo, equal to
about 370 barrels, even a minor spill in the archipelago,
which is a popular playground for boaters and campers in
the area east of the Swedish capital, could inflict significant
damage to the pristine environment.The 1989 Exxon
Valdez tanker spill in Alaska‘s Prince William Sound
gushed more than 250,000 barrels into the sensitive
aquatic environment, and the Deepwater Horizon
explosion in the Gulf of Mexico four years ago spilled
560,000 barrels.
"It is too early to know how much damage has been
done in the area," Jonny Aaberg from the Swedish Coast
Guard told the Local. Aaberg said high winds and waves
were hampering the efforts to contain the spill.Two
environmental protection vessels were dispatched to the
spill area after the coast guard received a distress signal
around 5 a.m., the Local reported. Aerial surveillance of the
accident site was also being conducted, the agency said.
Stockholm‘s archipelago of 30,000 islands and peninsulas
was in the news earlier this month when a mysterious
vessel thought to be a Russian submarine was spotted in
the area, triggering a massive sea and air hunt on a scale
unseen since the Cold War ended. The search for an
intruder was called off after authorities concluded the
vessel had left Swedish waters.
Seatrade Middle East Maritime Summit, in Dubai, Dimitris
Kostianis, transport strategy advisor to the Saudi Ports
Authority (SEAPA), said the kingdom was at a critical stage
in port development. The senior consultant to the Saudi
Ports Authority said facilities enjoyed sufficient to meet
demand, and that future plans had to guard against
overcapacity."As effective links in the transport chain, ports
need to have good access and connectivity to hinterland
road and rail networks, and good logistics facilities and
services," he said. Saudi Arabia is in the midst of an
efficiency drive to improve port performance.
Key performance indicators are needed to optimise use
of port land and operations, he said. Mr Kostianis said
more decisive coordination was needed to provide an
"integrated strategic national planning framework" to
improve connectivity between road and rail and ports,
which included allowing more scope for private sector
involvement in national port and transport development.
Jeddah Islamic Port, the cauntry's big harbour, posted a
4.6 million TEU throughput in 2013. Saudi Arabia's second
port, Dammam, where a new PSA International terminal,
will have 1.5 million TEU annual capacity expected to come
online next year, had a volume of 1.7 million TEU last year.
Abu Dhabi's Khalifa Port reaches Two Million TEU
Milestones
GAIL tender: Indian Yards Get More Time to
finalize Tech tie-up for LNG Carriers
Source: Asian Shipper
3rd November 2014
Source: Livemint
3rd November 2014
SINCE the opening of Khalifa port in Abu Dhabi at the
end of 2012, Khalifa Port Container Terminal (KPCT) has
handled two million TEU on the back of a strong increase
in both import and export volumes and high demand from
local and global customers. The two million TEU
throughput represents a 20 per cent year-on-year increase
in containers handled by the first semi-automated box
terminal in the Middle East, reported Abu Dhabi City
Guide. Abu Dhabi Terminals CEO Martijn van de Linde,
who manages and operates KPCT, attributed the increase
in container traffic to Khalifa port's efficiency and
productivity and to strong support from the shipping and
logistics community that have made the port their
hub."Passing this latest record demonstrates the extremely
robust position of Khalifa Port Container Terminal due to
its diverse and increasing trade base, strategic location and
significant hinterland connections," said Mr van de
Linde."We are continuously committed to support the
economic growth of the UAE and at the same time provide
our customers with fast and efficient services."
GAIL (India) Ltd has given fleet owners another month
to submit bids for hiring nine new liquefied natural gas
(LNG) carriers to ship the cargo from the US. This is an
attempt to allow local shipyards, where three of the LNG
tankers are to be built, more time to tie up with global
experts in the business. Each of the carriers will cost over
$200 million. A technological tie-up has eluded local
shipbuilders. The original timeline for placing technocommercial bids ended on 30 October. The state-run
natural gas firm has now set a deadline of 4 December for
the bids, the company said on its website.
If the deadline hadn‘t been extended, local yards would
have failed to qualify for constructing the carriers as part of
a government-backed plan to help them get started in the
niche business dominated by Korean and Japanese yards.
Shipbuilders in these two countries are unwilling to share
technology with Indian yards, putting in peril India‘s
decision to build the three tankers locally as part of Prime
Minister Narendra Modi‘s Make in India campaign. GAIL
has made some small changes to the tender, but this won‘t
help more global yards with LNG technology to participate.
Beijing Aid Helps China Cosco Back to Black with
Profit of US$261.5 Million
Saudi invests US$30 billion in Port Infrastructure,
but fears Overcapacity
Source: Asian Shipper
6th November 2014
Source: Asian Shipper
2nd November 2014
CHINA Cosco was back in the black with the third
quarter posting of CNY1.6 billion (US$261.5 million) net
profit against last year's CNY1 billion quarterly loss. This
year's third quarter revenue was CNY17.5 billion, up 10 per
cent. The big state conglomerate Cosco Group owed its
good fortune to government subsidies and volume growth
SAUDI Arabia is investing US$30 billion in port
infrastructure in a five-year plan involving a series of land
and marine projects, reports Seatrade Global. Speaking at
6
in its container shipping and its terminal business,
reported Lloyd's List. Improvement in net profit came as
the company booked CNY1.4 billion with a scrap-and-build
government subsidy from the Cosco Group for the
decommissioning and upgrading of vessels during the
period, said the report.Beijing announced a subsidy
scheme, which raised grants 50 per cent from the 2010
level to CNY1,500 per gross tonne, resulting in the
scrapping 31 older ships in the first half.
During the third quarter its container shipping business
handled 2.5 million TEU, up 8.2 per cent year on year.
During the first three quarters, container shipping
revenues were up 10.5 per cent on a year ago. The
container terminal business was 8.7 per cent up in third
quarter, posting a 17.6 million TEU throughput and
volumes for the first nine months were up 9.6 per cent year
on year.While managing a quarterly profit, China Cosco
declared a narrowing loss for the first nine months
compared to the first three quarters of 2013. That is, a
CNY654 billion loss against a loss of CNY2 billion a year
earlier.
the company will build the ports in Tanjung Api-Api, South
Sumatra, in Sorong, West Papua, and in West Kalimantan.
The construction of the new ports is expected to start in the
third quarter of 2015. Lino said that the ports should be
operational by the end of 2018.
"The new ports in West Kalimantan and Sorong would
cost around USD 248.4 million," Lino said to The Jakarta
Post, with the remainder of the funds directed towards
building the Tanjung Api-Api port.
The plan is a part of the port operator‘s previously
announced platform to build 22 sea ports throughout
Indonesia. "We are targeting to build or develop 22
seaports from Belawan to Sorong within five years, under a
budget of around USD 5 billion to USD 6 billion," Lino said
earlier. The projects will be financed through external
funds such as bonds, partnerships and loans.
Seaspan Eyeing Orders for 18,000 - 20,000 teu
Containerships
Source: seatrade-global
7th November 2014
China Merchants signs Deal in Shenzhen to Build
Tanzanian Mega Port
Containership owner Seaspan Corp is eyeing orders for
ultra-large boxships in the 18,000 teu to 20,000 teu range.
Expanding on its fleet of 10,000 teu and 14,000 teu vessels
Seaspan is now looking to move into the largest sizes of
containerships currently operating. During the company‘s
third quarter earnings call Seaspan cfo Sai Chu said, "we‘re
also looking at the larger size which is the 18,000 to
20,000 teu we‘ll see what happens over the next three to
six months and I think is no secret we are actually looking
at that class as well". Chu compared the 18,000 teu plus
class ship to the Airbus A380 in the civil aviation sector
and that therewould be a limited number of charterers and
a limited number of routes it could serve.
"But we‘re looking at that asset class as well, because
there are also limited operator and owners to be able to put
their hands on such technologically advanced and larger
vessels." Seaspan has six 10,000 teu and eight 14,000 teu
newbuildings due for delivery between 4 November 2014
and the end of 2016 for charters to Mitsui OSK Lines,
Maersk Line and Yang Ming.It also has options to build six
10,000 teu or 14,000 teu boxships at Yangzijiang
Shipbuilding. The Chinese yard said in March it was
pitching owners for containership newbuilding orders of up
to 18,000 teu in capacity.
Source: Asian Shipper
7th November 2014
Development of a US$10 billion mega port at
Bagamoyo, 75 kilometres up the coast from Dar des
Salaam, is being funded by China, Reuters reports. The
deal was signed in Shenzhen before Tanzanian President
Jakaya Kikwete with Hong Kong port developer China
Merchants Holding International (CMHI) together with
Oman's sovereign wealth fund, the State General Reserve
Fund (SGRF). Construction on the port and its surrounding
special economic zone is expected to start in July 2015,
according to a statement from the office of Tanzanian
President Jakaya Kikwete. The planned Bagamoyo port,
new investment in the commercial capital of Dar es Salaam
and other spending on roads and railways are part of
Tanzania's efforts to become a transport hub that could
challenge the dominance of Mombasa in neighbouring
Kenya.This is supposed to relieve pressure on Dar es
Salaam, the country's main port, where shippers complain
of congestion and inefficiencies, reported Reuters.The
signing of the construction agreement for the port and
associated zone follows a framework deal signed last year.
An official said a start date for building work had taken
time to set because of other negotiations about
infrastructure to link the port to national transport
networks.
First Domestically
Completed in China
Produced
Drilling
Ship
Source: Want
12th November 2014
Indonesia Plans Three New Ports
China has completed its first domestically produced
drilling ship, giving the country extra strength to tap into
the deep-sea drilling sector.The ship, officially christened
REIGNWOOD OPUS TIGER 1, was funded by the Chinese
Reignwood Group and constructed by Shanghai Shipyard
of China State Shipbuilding Corporation. It is the first
drilling ship with all intellectual property rights exclusively
owned by China.
Source: World Maritime News
6th November 2014
PT Pelabuhan Indonesia II (Pelindo II), a state-owned
port operator, is planning to issue USD 1 billion in bonds in
April 2015 to secure financing for the construction of three
new ports in Indonesia, The Jakarta Post reports. Richard
Joost Lino, the company‘s president director, said
7
The exact amount of investment was not revealed, but
industry insiders put the total cost between US$200-300
million. The equipment and facilities of the ship achieved
advanced global standards in terms of cost efficiency,
energy consumption, safety and reliability, making it
suitable for oil and gas exploration in the areas of the South
and East China Seas, according to Liu Shaohua, vice
president of Reignwood Group.A second ship of the same
standard is under construction, and another two will be
built, according to Liu.
During the transitional period Zayed Port will continue
to provide a storage area for the remaining vehicles. "By
moving all of our RORO traffic to Khalifa Port, we can
enhance our facilities and offer our customers a
consolidated full service RORO hub, supported by the
adjacent Kizad logistics and distribution zone," says Capt.
Mohamed Juma Al Shamisi, CEO, ADPC. ADPC‘s latest
figures underline the massive growth of Abu Dhabi‘s RORO
business: A record number of 10,472 vehicles were handled
at Zayed Port in October, the highest number of vehicles
ever handled in a single month. In 2013, a total of 89,280
vehicles were imported to/exported from the emirate, this
year‘s RORO moves already add up to 84,869 vehicles and
the year end volumes are expected to be in the region of
100,000 vehicles.
"From 2013 to the end of 2014, we are anticipating a
year-on-year increase of around 13%. As our market
analysis indicates, next year, we expect to exceed 130,000
vehicles at Khalifa. With Khalifa Port as Abu Dhabi‘s new
market base for RORO cargo, we will be able to effectively
cater for this growth and offer economies of scale to our
customers", Al Shamisi adds.
More Measures to Ease Port Congestion in the
Philippines
Source: Seashipnews
9th November 2014
MANILA: The Philippine Ports Authority (PPA) is
reshuffling berthing arrangements in order to ease port
congestion in the country ahead of the Christmas
season.Vessels designated or arranged to call at the Port of
Manila on an 'ad hoc‘ basis will be berthed at South Harbor
or Subic Bay Freeport, according to a PPA memorandum
released. Those vessels calling at the Port as part of a
regularly scheduled service will not be affected. Vessels
whose ports of loading and/or unloading are both South
Harbor and MICT will be directed by the PPA to berth at
South Harbor or Manila International Container Terminal
upon arrival at the pilot boarding station."This measure
will reduce the number of vessels waiting at anchorage. It
will also prevent double calls of vessels. Instead of calling at
the two ports for some of the vessel operators, they will call
now only at one port," the PPA said.The PPA said the
arrangement was temporary and would only be valid until
November 30. Yard utilization increased to about 90%
during the All Saints‘ Day/All Souls‘ Day weekend from
mid-80% as of October 31, a PPA spokesman told press.
LNG as fuel is spreading into Worldwide Shipping
Source: DNV GL
5th November 2014
LNG as a ship fuel has been discussed in shipping for
approximately five years now. Nevertheless, the first nongas-carrier to run on LNG – the Glutra – was a ferry and
came into service in Norway as early as in 2000. It lasted
for 13 years until the first LNG-fuelled vessels not
operating in Norwegian waters came into service in 2013.
Now, LNG as a ship fuel is spreading into worldwide
commercial shipping.
Today, more than 50 LNG-fuelled ships are in service
and six of them operate outside Norway. This year was the
first time that the order book for LNG-fuelled ships
contained more ships than the number of ships in
operation using LNG as fuel. Approximately 70 ships are
on order and only around one-third of them will operate in
Norway. Another one-third will operate in the US while the
rest will operate in Europe outside Norwegian waters.
Over the next few years, ferries will continue to play an
important role in the growth of the LNG-fuelled fleet. Ships
like Fjordline‘s Stavangerfjord and Bergensfjord are the
high end of this market. For vessels not operating on
dedicated trades, it is still difficult to ensure the supply of
LNG. Ferries operating on dedicated trades can handle the
fuel supply much more easily than cargo vessels that
operate worldwide. In addition, the existing sulphur and
NOx requirements in North America and Europe and the
related high cost of low-sulphur fuels already make LNG an
attractive cost efficient solution.
In 2020, IMO intends to limit the worldwide sulphur
content of ship fuel to 0.5% weight. DNV GL evaluations
conclude that this will lead to fuel costs of about 80% of the
MGO price. With this price level, LNG will become a very
competitive solution for all ships. However, IMO will not
make its final decision on whether the limit is to come into
force in 2020 or 2025 until 2018 because it has subjected
the 0.5% limit to a feasibility review that takes into account
ADPC Moves RoRo Transport to Khalifa
Source: World Maritime News
14th November 2014
Abu Dhabi Ports Company (ADPC) said it was
transferring all of its Roll-On and Roll-Off (RORO) cargo,
such as cars and trucks, from Zayed Port to Khalifa Port.
The move comes as a result of Abu Dhabi‘s growing
vehicle import and export business and will be effective
from 1 January 2015. Khalifa Port offers more facilities and
an increasing number of direct links (currently 52) to
destination ports around the globe. "The current RORO
import and export activities serve Abu Dhabi and the UAE,
but the extended space and capacity at Khalifa Port will
attract more RORO transshipment for the wider Gulf
region, facilitating a more competitive and therefore
customer-friendly market," ADPC added. While Zayed Port
has many vehicle slots on its port site and can handle two
RORO vessels at a time, Khalifa Port will have 15,000 slots
and will be able to handle up to four vessels at a time.
ADPC pointed out that the new RORO hub at Khalifa Port
will be designed to guarantee quick turnaround times and
supply chain efficiency for shipping lines.
8
the worldwide availability of low-sulphur fuel in 2020. So it
may be business as usual for more than ten years? this will
be the case in many parts of the world but not in European
waters.
EU has already decided to implement the 0.5% sulphur
requirement in 2020 regardless of the IMO decision. this
means that a large part of the Mediterranean will be
sulphur-restricted from 2020 onwards.
Seven coastguard vessels and a helicopter were continuing
search operations in the Black Sea, some 3 miles (5 km)
north of the Bosphorus, the coastguard said in a statement.
Shipping agents GAC said the boat had been heading for
the Romanian port of Constanta when it sank around 5
a.m. (0300 GMT) and was believed to be carrying around
50 refugees. The governor's office said a diving team had
also been sent to the area.
There was no official comment on the number of people
travelling on the vessel.Most of the migration to Europe
happens via the Mediterranean Sea and the International
Organisation for Migration (IOM) said last week that an
estimated 3,200 migrants had died attempting to cross the
Mediterranean this year.
Jebel Ali Port Welcome Largest Bulker Ever
Source: World Maritime News
5th November 2014
The Saba Shipping‘s Mega Star has become the largest
ever bulk carrier to call at Dubai‘s Jebel Ali port. The 229
metre-long Mega Star was carrying around 79,000 tonnes
of reinforcing steel from Turkey, destined for Dubai.
Last month, Jebel Ali Port welcomed the first scheduled
vessel to call at its new Container Terminal 3. Once fully
operational next year, the terminal will add a further 4
million TEU (twenty-foot equivalent container units)
capacity to the port, taking total handling capacity at Jebel
Ali to 19 million TEU.
HE Sultan Ahmed Bin Sulayem, Chairman of DP World,
said: "Our flagship Jebel Ali Port serves a huge variety of
customers, all to the same extremely high standard. The
team in Jebel Ali rose to the challenge of handling the
biggest ever vessel of its type to visit the port, and I
congratulate them on their achievement. Efficiently
handling 79,000 tonnes of reinforcing steel at Jebel Ali
comes hard on the heels of the new Container Terminal 3
receiving its first vessel. This sends a clear message that we
are ready to meet future capacity demands in Dubai,
whether containerised or non-containerised cargo."
In the first nine months of 2014, DP World‘s UAE
terminals handled 11.4 million TEU, representing growth of
12.6% year-on-year.
Arctic Shipping Volume Rises as Ice Melts
Source: Wall Street Journal
3rd November 2014
Bosphorus Strait Traffic Suspended as Boat Sinks,
At Least 24 Dead
Source: Marinelink
6th November 2014
Rescuers pulled 24 bodies from the sea at the mouth of
Istanbul's Bosphorus strait and rescued seven people after
the sinking of a boat carrying migrants including children,
the Turkish Coastguard Command said. Tens of thousands
of migrants from Africa, the Middle East and beyond pack
into often unsafe boats each year and thousands of them
drown in their efforts to enter the European Union through
coastal states.
The boat, which capsized, was loaded with 42 Afghan
illegal migrants, including 12 children and seven women,
along with a Turkish captain, the Hurriyet news website
reported. It was believed to have been heading for Bulgaria
or Romania, but it was unclear where it set to sea. Bodies
covered in blankets were laid on a jetty on the European
side of Istanbul's Bosphorus strait, a Reuters witness said.
"They had life jackets. But there were bodies
everywhere. Babies, children... We pulled out 15-20
bodies," Hurriyet quoted fisherman Kadir Sert as saying.
9
Cargo shipping volume through the Northern Sea Route
is rising as Arctic ice melts, according to a new report.
The opening up of the Arctic for commercial cargo
offers a faster route for some shipments between Europe
and Asia, and holds the promise of increased trade for once
icebound ports in the High North of Arctic countries such
as Russia, Norway and Canada. However, much of the new
traffic through the Northern Sea Route is one-way
shipments of fossil fuels from Northern Europe to Asia or is
between Russian ports, according to a report released by
the Arctic Institute, a Washington think tank. The institute
said 71 ships carried 1.35 million tons of goods through the
route last year. That was up from 46 vessels with 1.26
million tons of cargo the previous year.
The majority of ships originated in Russia and many
were from one Russian port to another in the country. Only
41 vessels traveled the full length of the Arctic shipping
lane, and of those, 30 ships carried cargo, the report said.
"There‘s a lot of talk about it becoming a sort of highway
from Europe to Asia, but that‘s not really what we‘re seeing
yet," said Malte Humpert, the institute‘s executive director.
Developing Arctic sea ports has become an important
objective of the Russian government, he said. The Arctic
Institute report analyzed data from the Northern Sea Route
Information Office, which is run by the Norway‘s nonprofit
Centre for High North Logistics.
The route, also known as the Northeast Passage, hugs
Russia‘s northern border and typically is easier to navigate
and has less ice buildup than the Northwest Passage,
another Arctic route that gets fewer ships and lies closer to
Canada. Both routes are only traversable during a short
season from late summer to early fall before freezing up
again, though that season has lengthened because of
climate change.
Scientists have said burning fossil fuels helps to
contribute to global warming, causing sea levels to rise. Of
the international cargo-bearing voyages using the Northern
Sea Route, the Arctic Institute‘s report said 67% involved
shipments oil products. More goods were shipped from
Europe to Asia than the other way around, with more
ballast than cargo heading from Asia to Europe, it said.
ACTIVITY AT KARACHI PORT (1-15 NOVEMBER 2014)
Date
1-NOVEMBER-14
Import InTonnes
Export InTonnes
Total
110,621
17,649
128,270
6-NOVEMBER-14
120,752
18,432
139,184
7-NOVEMBER-14
89,628
49,305
138,933
8-NOVEMBER-14
62,657
41,472
104,129
11-NOVEMBER-14
186,791
79,050
265,841
107764
23754
131518
73004
19739
92743
124345
25344
149689
138064
48169
186233
12-NOVEMBER-14
13-NOVEMBER-14
14-NOVEMBER-14
15-NOVEMBER-14
300,000
250,000
200,000
150,000
Import in Tonnes
Export in Tonnes
100,000
Total
50,000
14-Nov-14
13-Nov-14
12-Nov-14
11-Nov-14
10-Nov-14
9-Nov-14
8-Nov-14
7-Nov-14
6-Nov-14
5-Nov-14
4-Nov-14
3-Nov-14
2-Nov-14
1-Nov-14
0
Source: Business Recorder
10
ACTIVITY AT PORT QASIM (1-15 NOVEMBER 2014)
Date
Import InTonnes
Export InTonnes
Total
1-NOVEMBER-14
79,595
22,971
102,566
6-NOVEMBER-14
38,604
38,430
77,034
7-NOVEMBER-14
24,317
19,479
43,796
8-NOVEMBER-14
43,904
24,519
68,423
11-NOVEMBER-14
67,937
28,860
96,797
58535
2079
60614
80876
24221
105097
105139
61237
166376
85178
32984
118162
12-NOVEMBER-14
13-NOVEMBER-14
14-NOVEMBER-14
15-NOVEMBER-14
180,000
160,000
140,000
120,000
100,000
80,000
Import in Tonnes
60,000
Export in Tonnes
Total
40,000
20,000
14-Nov-14
13-Nov-14
12-Nov-14
11-Nov-14
10-Nov-14
9-Nov-14
8-Nov-14
7-Nov-14
6-Nov-14
5-Nov-14
4-Nov-14
3-Nov-14
2-Nov-14
1-Nov-14
0
Source: Business Recorder
11
Maritime Trade & Economy
able to outlast the other in this price environment. So,
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contributor Tyler Crowe discuss which group is likely to
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extended period of time and which companies investors
should be looking at today with oil this cheap.
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Coal Price recovery Pushed Out Until Mid-2016 –
Moody's
Source: Reuters
1st November 2014
Falling demand in China for imported coal, combined
with plentiful supply and a weak global economy, will delay
any recovery in the price of metallurgical coal until the
second half of 2016, ratings agency Moody‘s said.
A rise in metallurgical coal prices to between $135 and
$145 a tonne was unlikely before the second half of 2016, it
said. The ratings agency said in July that it expected prices
to recovery modestly to $140 by end-2015. "We are seeing
slowing imports into China, and believe that the Chinese
steelmakers rely more heavily on domestic metallurgical
coal supplies and attempt to manage with lower inventory
levels," Moody‘s said in a report. China consumes close to
60 percent of metallurgical coal, which is mainly used in
the production of coke to make steel.
The fourth-quarter benchmark price for high quality
coking coal has been settled at a seven-year low of $119,
unchanged from the second and third quarters.
OPEC Stumbles Intentionally
Source: ESAI Energy
5th November 2014
ESAI Energy wrote in its October 2- Year Global Crude
Oil Outlook, released on October 30, that we believe there
could be some kind of agreement or joint OPEC statement
in November, if for no other reason than to show some
organizational cohesion to counter critics who say OPEC is
unimportant. But, the intention, whether stated or not, will
be to prevent further price decline rather than lift prices.
After an intentionally modest effort to reduce output in
early 2015, does OPEC go further later in 2015 or in 2016?
Absent a new supply disruption somewhere, the
fundamentals will only get worse in 2016. ESAI Energy
expects the call on OPEC crude to fall to 28.3 million b/d in
2016 from roughly 28.8 million b/d in 2015. With slightly
lower output by the end of the first quarter of 2015, the
pressure on prices will drop a bit, allowing Brent to climb
back to $90 and perhaps a bit higher. But the
supply/demand fundamentals will still signal a 700,000
b/d, or more, surplus in 2016 even if OPEC production
were to slide down to 29.0 million b/d.
"As we pointed out in December 2013, and again in
September of this year, it is unlikely that Saudi Arabia will
take strong action to lift prices. We do believe OPEC as a
whole will stumble into a modest reduction in output that
will keep Brent generally near $85. But, absent a new
supply disruption, OPEC will remain under periodic
pressure to defend that price in a fundamentally weak
environment through 2016," says ESAI Energy Principal,
Sarah Emerson.
India, China and the $42 Trillion Growth Question
Source: Business Standard
3rd November 2014
Asiaphoria, the idea that the global centre of gravity will
shift to China and India, has almost become conventional
wisdom. But challenging this view are economists
Lawrence 'Larry‘ Summers and Lant Pritchett.
In a new paper, the authors argue that the rise of India
and China should be seen as a continuation of the rise of
Asian economies which started with the rise of Japan
followed by so-called 'Tiger‘ economies of East Asia. The
authors estimate that if the two Asian giants continue to
grow at their current pace, then the combined GDP gain in
2033 will be $56 trillion. But if their growth reverts to the
global mean, then the combined GDP gain falls to $14
billion – a difference of almost $42 trillion.
Oil News: Will OPEC or America Blink First at Low
Oil Prices?
Source: Motley Fool
4th November 2014
North American oil producers and OPEC nations seem
to be in a standoff. Like Clint Eastwood and some bad dude
in an old western movie, both have their hands close to the
holster, waiting for the other to make the first move. This
time, though, the guns they are reaching for would slow
down oil production, relieve excess supply, and in turn
raise OIL PRICES from the lows we haven‘t seen since the
financial collapse of 2008. With oil at $80 per barrel,
neither group is happy, but both are saying that they will be
Iran Keen to Invest in Indonesia's O&G Sector
Source: Gulfshipnews
10th November 2014
JAKARTA: Iran will build an oil refinery in Indonesia and
also supply crude oil to the country. Naryanto Wagimin,
acting director general for oil and gas of Indonesian Energy
12
and Mines Ministry told reporters that Iran also plans to
build liquefied natural gas (LNG) and petrochemical
refineries in Indonesia. He said, "Iran wants to build many
refineries, such as oil refinery, LNG refinery and
petrochemical refinery ... It would also supply crude oil,
including the crude oil for the refinery it plans to build."
losing market share to alternatives: gas must be in a
position to compete against cheaper coal and low-carbon
electricity sources such as nuclear and renewables. The
report also calls for gas producers to improve their project
management and execution, noting that recent cost
overruns on large LNG projects were hindering the ability
of gas to compete.
IEA: To get Most from Transforming LNG Markets,
Asian Governments Must embraces Reforms
India helps Port Hedland Export a Record 37.5
Million mt Iron Ore in October
Source: Hellenic Shipping News
8th November 2014
Source: Platts
5th November 2014
Asian governments must reform their natural gas
markets if the region is to see an expansion in liquefied
natural gas (LNG) supply to meet its rapidly growing
demand, according to a new report from the International
Energy Agency (IEA) published today. The report specifies
that limited flexibility and pricing issues are the main
challenges to overcome in the development of a more
efficient market.
The IEA has previously highlighted the need for more
transparent and efficient markets in Asia, where gas prices
are four times those in North America – and can be as high
as five times in winter – but the issue is becoming more
acute as the region‘s gas demand rises and as the LNG
market becomes increasingly globalised. Some 150 billion
cubic metres (bcm) in new LNG supplies, led by several
projects in Australia, are expected to become available
between now and 2020. In that same period, Asian gas
demand is forecast to grow by around 250 bcm.
"The advent of new LNG supplies represents a golden
opportunity for Asia, but first the region‘s governments
must address the rigid and illiquid markets that undermine
affordability and accessibility for consumers," said IEA
Executive Director Maria van der Hoeven as she presented
the new report, The Asian Quest for LNG in a Globalising
Market, at the LNG Producer-Consumer Conference in
Tokyo. "For gas to be a sustainable contributor to energy
security in the region, Asia must look to reforms."High
prices have become unsustainable for consuming countries
in Asia, and the problem is even more acute for those
countries that have regulated low end-user prices. The
process of lowering costs for LNG, however, will not be
swift nor will it be simple, as the LNG supply chain is
capital- and energy-intensive.
The IEA report offers recommendations for both
governments in consuming countries and LNG producers
on how to develop an LNG market in Asia that efficiently
balances supply and demand while optimising trade flows.
It says governments should provide effective, open, thirdparty access to infrastructure, which would form the basis
for the development of gas trading hubs in Asia. In this
regard, Singapore is leading by example, with the first
open-access, multi-user LNG terminal in Asia. The report
encourages governments to embrace pricing reform, with
less intervention in wholesale prices. Instead, governments
should encourage the natural development of competitive
pricing in order for gas to be a sustainable contributor to
energy security in the region.
The report calls on gas producers to embrace the idea of
reforms even though these will require modifying longstanding business models. Without reforms, producers risk
Iron ore exports from Western Australia‘s Port Hedland
hit a record 37.5 million mt in October, helped by a jump in
shipments to India, which is becoming a more important
market for Australian producers.
Total October exports were slightly above the previous
record of 37.4 million mt set in August and were up on
September‘s 36.3 million mt. China accounted for 31.7
million mt from the port in October, the second highest
volume after August‘s record 32.1 million mt, according to
Pilbara Ports Authority data released. But it was the record
322,000 mt — roughly the equivalent of two Capesize
vessels — of iron ore shipped to India in October that
caught the eye, as Australia has typically only shipped
small amounts to India on an infrequent basis over the
years. When required, India has largely imported iron ore
pellets from South Africa.
However, plunging spot iron ore prices have made
seaborne cargoes more attractive to Indian steel mills as
prices have been closer to domestic levels. Mining bans in
some Indian states have also disrupted captive iron ore
supply in some cases. JSW Steel, and to a lesser extent Tata
Steel, have been the most prominent importers, with
traders bringing in small amounts. Atlas Iron, which ships
from the common-user Utah Point facility at Port Hedland,
said last month that it had shipped five cargoes to India
since May. "India sees a compelling argument to buy
seaborne iron ore as sources of domestic product are not as
competitive," Atlas Managing Director Ken Brinsden said
at the time.
Vietnam to Build Big Oil Rigs
Source: Vietnam Net Bridge
9th November 2014
Vietnam is building a jack-up rig with modern
technologies based on a design from American firm Friede
& Goldman, which provided the design specifications for
the Chinese HD 981 oil rig. The Vietnam National Oil and
Gas Group (PetroVietnam), Vietsovpetro (the main
investor) and PV Shipyard in October held a keel laying
ceremony for the Tam Dao 05 oil rig after five months of
construction. Tam Dao 05 is a jack-up rig, designed in
accordance with Friede and Goldman‘s JU-2000E model.
It is expected to have a total 18,000 tonnage when it is
built, capable of operating at a depth of 120 meters or 400
ft below water, and will be able to drill at a depth of 9,000
meters, or 30,000 ft.
13
Maritime Security
hostage."Some of those crewmembers have been held
captive there for more than four years now, with fading
hopes of immediate release," said Mukundan.
Pirates Hijack Police Gunboat in Nigeria's Oil-Rich
Source: Canadian Press
1st November 2014
Indian Navy Ship Scraped by Merchant Vessel
Niger Pirates hijacked a police gunboat, killed three
officers and kidnapped six local oil workers, the military
said. Joint Task force spokesman Col. Mustapha Anka said
the gunboat and police were escorting a barge-load of oil
for the Nigerian Agip Oil Company, which was not
attacked. The attack happened on the Barbara River in
southern Bayelsa state, Anka told The Associated Press.The
day before, the Bayelsa police command reported that six
Nigerians working for Agip had been kidnapped by pirates.
Oil workers usually are held for ransom and released
unharmed. Piracy in Nigeria is aimed at oil theft and
kidnapping for ransom and cost the nation some $131
million in the past three years, according to the
Contemporary Maritime Piracy Database.While piracy has
gone down in the rest of world and especially in Somalia
since a multinational force was deployed, it has increased
in Nigeria. Last year, Nigerian pirates and armed robbers
were blamed for 31 of 51 attacks in the region, including in
waters far from home off Gabon, Ivory Coast and Togo,
according to the International Maritime Bureau.
Source: Shanghai.com
1st November 2014
NEW DELHI: An Indian navy corvette was scraped by a
merchant vessel in the Bay of Bengal off the eastern coast
of India, resulting in minor damages, said officials. "A
minor incident involving INS Kora and merchant vessel
Madelieine Rickmers has been reported approximately 300
NM ( Nautical Miles) at sea from Visakhapatnam, wherein
INS Kora was scraped by the merchant vessel in the early
hours today, 31 Oct 14, " said the Indian Ministry of
Defense.
"INS KORA and INS GAJ were on passage from
Visakhapatnam to Port Blair. INS Kora has reported minor
damages to her ship's side. There has been no damage to
the watertight integrity of the ship or any injuries/loss of
life," it said. An inquiry is being launched to investigate
into the circumstances leading to the incident, it said. The
Indian navy has suffered a series of incidents over the past
few years, including the explosion and sinking of a
submarine last August in Mumbai, in which 18 sailors were
killed.
Global Pirate Attacks Fall, IMB Warns of Southeast
Asian Tanker Hijackings
Source: seatrade-global
1st November 2014
Coast Guard Ships to Rescue Fishing Boats from
Cyclone Nilofar
The number of pirate attacks reported worldwide to the
International Maritime Bureau (IMB) has continued to fall
with 178 incidents in the first nine months, however, the
anti-piracy watchdog warned on hijacking of small tankers
in Southeast Asia.The number incidents in the first nine
months of 2014 was lower than the 188 reported in the
same period in 2013, which was the lowest number of
attacks since 2006. By contrast in the first nine months of
2011 there were 352 attacks. In the first nine months of
2014 some 17 vessels were hijacked, 124 boarded, 10 fire
upon, three seafarers, five kidnapped and 369 held
hostage."It‘s encouraging to see the huge decrease in
maritime piracy and armed robbery over the last few years,
thanks mainly to international navies deterring pirates off
East Africa, and improved onboard security," said IMB
director, Pottengal Mukundan.
"However, there has been a worrying new rise in attacks
against small coastal tankers in Southeast Asia. We advise
small tankers in particular to remain vigilant in these
waters and report all attacks and suspicious small craft to
the IMB‘s Piracy Reporting Centre." Of the six vessels
hijacked worldwide in the third quarter of 2014, five were
in Southeast Asia. The pirates target small tankers carrying
products such as marine gas oil holding the crew hostage
while the cargo is offloaded fro resale. With the fall off in
Somali pirate attacks to just 10 incidents so far this year
IMB drew attention to those seafarers still held
Source: RT News
2nd November 2014
Taking precautionary measures ahead of Cyclone
Nilofar, Indian Coast Guard (ICG) deployed its four ships
at Porbandar coast to search and rescue fishing boats
sailing along the Gujarat coast and to place them at the
nearest safe harbours. "Four Indian Coast Guard (ICG)
ships Vijit, Meerabehn, Rajratan and Amritkaur fully
equipped with search and rescue (SAR) equipments have
been pressed into service from Porbandar today for search
and rescue operations as well as shepherding fishing boats
operating along the Gujarat coast to the nearest safer
harbour," a statement issued from Indian Coast Guard's
Gandhinagar headquarters said in Ahmedabad. However,
Cyclone Nilofar which was earlier described as a Very
Severe Cyclonic Storm (VSCS) over the west-central
Arabian sea, is now expected to make its landfall near
Naliya in Kutch tomorrow as a "depression", an MeT
Department release said. The Indian Coast Guard is also
quipped with aircraft to tackle any eventuality. "Two daily
air sorties are flown in search and rescue (SAR)
configuration, while two Dornier aircraft and two ALH
helicopters are also on standby at Porbandar," the Coast
Guard statement said. The Coast Guard has kept a logistics
and medical contingencies plan ready for an immediate
response. Coast Guard stations have also been equipped
14
with a power back up and sufficient fuel for alternate power
supply for unhindered response during the cyclonic phase,
it said. Regular advisory for mechanised sailing vessels and
the fishermen community for safe berthing and
discontinuation of sea operations are being passed through
seven radar stations along the Gujarat coast, Coast Guard
aircraft and ships on patrol, it said.
merchant ships were being held captive at any one time,
often for multi million-dollar ransoms.
Beijing Commands 400 Patrol Vessels: Thai
Military Magazine
Source: wantchinatimes
3rd November 2014
Inside Russian Nuclear Sub as it fires Missile that
can Level a City
To defend its exclusive economic zone in the disputed
East and South China Seas, China's maritime law
enforcement agencies have about 400 patrol vessels
according to Asia Military Review, a magazine based in
Bangkok. China currently has the largest fleet of patrol
vessels in the Asia-Pacific the magazine stated. The
tonnages of the 400 vessels range between 1,150 and
3,400. The agencies are also set to receive 36 additional
vessels.The Japan Coast Guard currently has only 50 patrol
vessels though they are better than the Chinese vessels in
terms of quality. Eighteen Type 056 corvettes were
constructed last year for the People's Liberation Army
Navy, which, used in combination with maritime patrol
vessels, will allow the PLA to confront the Japan Maritime
Self Defense Force in the event of a future conflict over the
Diaoyutai (Senkaku) islands. About 12 Type 056 corvettes
have begun service with the Chinese navy. They were
designed to replace the obsolete Type 037 submarine
chasers of the PLA Navy.
Source: Clipping News Worldwide
2nd November 2014
A TV crew was on board a Borey-class nuclear
submarine as it was test-firing a Bulava nuclear missile. A
video from the sub shows people entrusted with one of the
world's most powerful weapons in action. The Yury
Dolgoruky fired its deadly cargo from the Barents sea in
Russia's north to the Far-Eastern test range of Kura.
Footage from the scene shows tense seamen and officers
in blue uniforms going through the launch protocol, using
the same language they would use in case of a real nuclear
war. The moment the missile departed was noticeable
everywhere on the giant submarine, as it sent tremors
through its hulls.
Somali Pirates free Indian Sailors after Four Years
in Captivity
EU Naval Force Warships FGS Berlin and HNLMS
Van Speijk conduct Successful Escort of World
Food Programme Ship
Source: Reuters
3rd November 2014
Source: EUnavfor-Somalia
3rd November 2014
Somali pirates have freed seven Indian sailors detained
for close to four years in exchange for an undisclosed
ransom, Somali officials and a maritime monitoring group
said. At one time the pirates made millions of dollars in
ransoms from seizing ships sailing the Horn of Africa
nation's waters, but increased patrols by international
navies on the Indian Ocean have reduced incidences of
piracy. The sailors, held since the pirates hijacked the
Panama-flagged ship MV ASPHALT VENTURE in
September 2010, were freed. Eight of their colleagues were
freed by the pirates along with the ship in April 2011 for a
ransom. Their captors said at the time that they would only
release the seven sailors when their fellow Somali pirates
held by Indian authorities were freed. It was not clear if
their demand had been met.Kenyan-based Ecoterra
International, which monitors maritime activity on the
Indian Ocean, confirmed the sailors' release."The
remaining seven hostages... were finally freed by their
captors against a ransom and arrived in Mogadishu, the
capital of Somalia, from where they will be flown directly to
India," Ecoterra said in a statement. Regional government
officials were involved in the release of the sailors from
their captivity in the town of Haradheere in central
Somalia, officials said.The last successful hijacking was in
May 2012, when Somali pirates seized a Greek-owned oil
tanker carrying close to a million barrels of crude oil while
in the Arabian Sea.In January, a merchant ship was
boarded by Eritrean forces in the Red Sea, an incident
which was initially reported as a pirate attack.At the height
of Somali pirate attacks in 2011, up to a dozen or more
One of the core tasks of EU Naval Force (EU NAVFOR)
Somalia Operation Atalanta is the protection of World
Food Programme (WFP) vessels delivering aid to Somalia.
This particular escort of a WFP chartered vessel was
conducted by two EU NAVFOR Warships the FGS Berlin
and the HNLMS Van Speijk over a period of eight days. EU
NAVFOR Warship HNLMS Van Speijk escorted the WFP
chartered vessel from 21-25 September before handing
over to FGS Berlin allowing the Dutch Frigate to proceed
north whilst the German Auxiliary Fleet Support vessel
continued the escort from 26-29 September."The broad
range of capabilities of our ship makes it possible to ensure
a comprehensive protection. I am glad that the protection
was successful and the much needed food could be
transported to the Somali people." said Commander Marcel
Rosenbohm (German Navy), Commanding Officer of the
FGS Berlin, on 29th September when the WFP vessel
moored in Mombasa. Altogether the EU Naval Force has
protected World Food Programme ships carrying over
910,000 tonnes of humanitarian aid since 2008.
Torpedo Fired from RMN's Submarine Hits Target
Source: dailyexpress
4th November 2014
The country's second submarine, KD Tun Razak (KD
TRZ), successfully fired a Black Shark torpedo that hit the
15
intended target in the South China Sea. The torpedo, which
was launched from the Royal Malaysian Navy's (TLDM)
strategic assets, hit the surface target at 11.13am based on a
set distance and speed. According to a TLDM public
relations statement, KD TRZ fired a Black Shark torpedo at
a 'passenger ferry' that was modified as a target for the
shooting purpose.It said the torpedo, which was launched
accurately, destroyed and sank its target.
"This is the first time a Malaysian submarine fired a
torpedo since the country's first submarine, KD Tunku
Abdul Rahman (KD TAR) arrived at Port Klang on
September 3, 2009. The missile launch was also the first
for Black Shark torpedo since it was introduced by its
manufacturing company, Whitehead Alenia Sistemi
Subacquei (WASS) of Italy," the statement said.The launch
also involved supporting assets of TLDM and the Royal
Malaysian Air Force (TUDM), including KD Jebat, KD
Terengganu, KD Kasturi, KD Laksamana Tan Pusmah,
Fennec helicopter, submarine rescue boat Mega Bakti,
CB90 Combat Boat as well as diving teams. The statement
said the successful exercise showed the preparedness of the
Armed Forces, especially TLDM, at a high level of alertness
in defending the country's sovereignty and placing TLDM
as a respected force in the region.
made by a Navy Captain to the Friends of the Royal Navy
Museum and HMS Victory in Portsmouth.
A guest said: "He said for a very small period of time
there would be no dry dock available in the UK."As a result
– and only be as a contingency measure – the Navy have
plans to dock the ship in France." Last night an MoD
spokesman said: "There are no plans to undertake docked
maintenance to HMS Queen Elizabeth or Prince of Wales
outside the UK."
Sailor freed by Pirates Recounts Horror: Begged
for Food, water
Source: indianexpress
8th November 2014
Bahadur Singh, a 57-year-old sailor from Ranakapura
village in Haryana, is among seven Indians who arrived in
Mumbai last week after being held captive by Somalian
pirates for four years.Bahadur lacks confidence and gets
restless when asked to recount his ordeal. The only thing he
says with certainty is that he doesn‘t have any respect for
pirates. He was among the 15-member crew of Indians
aboard M V Asphalt Venture, which was hijacked by
Somalian pirates off the coast of Tanzania on September
28, 2010. Eight men were released in April 2011. The rest
returned last week."I am eager to meet my 95-year-old
mother. She prayed for me day and night," said Bahadur.
"After offering prayers at all temples, mosques and
gurdwaras in Mumbai, I would like to meet her the first,"
he added. He is also looking forward to seeing his two
children,a 30-year-old daughter and a 27-year-old
son.Apart from Bahadur, Manjeet Singh (57), T B
Unnikrishnan (57), George Joseph (60), Sohan Singh (45),
Bhim Sen Singh (45) and Littton Daniston Anthony (27)
are being guided by their Indian coordinator Chirag Bahri
for the Maritime Piracy Humanitarian Response
Programme "At present, all of them are under mental
trauma. The moment they are asked about what happened,
they start crying. We are giving them psychological
counselling here in Mumbai," Bahri said. Talking about the
ill-fated day, Bahadur said, "We were travelling from
Mombasa in Kenya towards Durban in South Africa when
two speeding boats with almost 20 armed pirates entered
from the rear of our ship. They forcibly took the carrier to
Hardere Anchorage in Somalia." "I had seen scenes of
kidnapping in movies, but it was actually happening to us.
We suffered every day and every minute for the past four
years," he said. Describing the location where they were
taken, he said, "It is named after the village, Hardere. We
were kept in the forest where the chief of the troops named
Sarafee Abdula-hi alias David had huge farms.
Navy Ship Suffers Minor Damage in Collision
Source: The Hindu
4th November 2014
Indian Navy corvette collided with a container carrier in
the Bay of Bengal in the early hours. However, there are no
casualties, but the Naval ship suffered minor damage.
According to Navy official spokesperson Eastern Naval
Command‘s guided-missile corvette INS KORA collided
with a Marshall Island flag carrying container carrier MV
MADELEINE RICKMERS some 300 nautical miles south
east off Visakhapatnam coast . While the merchant ship did
not suffer any damage, the corvette has sustained minor
damage. However, there are no operational limitations and
she is continuing with her mission. A Board of Inquiry has
been constituted to ascertain the cause of the incident. INS
KORA is one of the four vessels built at Garden Reach
Shipbuilders and Engineers and outfitted at Mazagon Dock
Limited (MDL). MV MADELEINE RICKMERS is a
container cargo ship owned by Hamburg-based German
maritime company Rickmers Group.
Navy's Pride HMS Queen Elizabeth' will depend on
French'
Source: express
4th November 2014
UN Continues Fight against Somali Pirates
The 65,000-tonne aircraft carrier, Britain‘s largest ever
warship, was described as a "source of inspiration" by the
Queen when she christened the vessel at Rosyth, Scotland
in July. The ship is due to be launched in 2017, although
delays are expected. But for three years while her sister
carrier the Prince of Wales is being completed in Rosyth,
there will be no dry dock large enough for Queen Elizabeth
if she needs underwater repairs. It is believed the Navy
would use Toulon in southern France.The disclosure was
Source: World Maritime News
14th November 2014
Expressing continued grave concern over piracy off the
coast of Somalia despite a sharp decline in attacks, the
United Nations Security Council has renewed
authorizations for international action to fight the crime in
cooperation with Somali Government authorities for
16
another year.
Through the unanimous adoption of resolution 2184
(2014) under Chapter VII of the United Nations Charter,
the Council renewed its call upon the UN States and
regional organizations that had the capacity to do so to
fight ongoing sea crimes by deploying naval vessels, arms
and military aircraft and through seizures of boats, vessels
and weapons used in the commission of those crimes.
It also continued to exempt, from the arms embargo
imposed on Somalia by resolution 733 (1992), supplies of
weapons and military equipment destined for the sole use
of the UN States, international, regional and sub-regional
organizations taking measures in line with the
authorizations. By other terms, the Council underlined the
primary responsibility of Somali authorities in the fight
against piracy and armed robbery off their coast, urging
them to adopt the necessary legal framework. All States
were urged to adopt legislation to facilitate the prosecution
of suspected pirates and to take measures to prevent the
illicit financing of piracy. Following the adoption, a
representative of Somalia thanked the Council for its
action, pledging his Government‘s cooperation with all
provisions.
agreed that the international community must continue to
play a vital role in fostering debate and finding solutions to
this very serious issue.
Indian Navy committed to Ensuring Safety of
Indian Ocean Sea Lanes, says Sushma
Source: ANI
3rd November 2014
External Affairs Minister Sushma Swaraj, stating that
maritime security is of vital importance to both Mauritius
and India, said that the Indian Navy is committed to
ensuring safety of the sea lanes in the Indian Ocean.
"Maritime security is of vital significance for an island
nation like Mauritius as well as for a country with a vast
coastline like India. A large part of our trade passes
through the vast expanse of the Indian Ocean. Safety and
security of the sea-lanes is thus indispensible for our
territorial, economic and energy security. The Indian Navy
is committed to ensuring the safety and security of these
sea-lanes in cooperation with the National Coast Guard of
Mauritius. This is important for safeguarding our common
national interests," said Swaraj during her three-day visit
to Mauritius. "We have three ships from the Western Fleet
of the Indian Navy docked in Mauritian waters, namely,
INS Mumbai, INS Deepak and INS Talwar. These ships
have been deployed to Mauritius with a view to
qualitatively enhancing our long standing and multifaceted cooperation in ensuring peace, stability and
maritime security in the Indian Ocean region," she added.
Speaking on the occasion of the 180th anniversary of
the Aapravasi Diwas, which marks the date when the first
Indians arrived in Mauritius to work as indentured
labourers, Swaraj also said that India's naval presence in
the country would enhance the relations between New
Delhi and Port Louis. "I am sure that the presence of the
Indian Navy ships on this occasion of the 180th
anniversary of Aapravasi Diwas will qualitatively enhance
our long standing and multi-faceted cooperation in
ensuring peace, stability and maritime security in the
Indian Ocean region," she said.
"I am also sure that this will go a long way in further
strengthening our deep-rooted cooperation and that our
friendship, including in defence sector, will grow from
strength to strength in times to come," Swaraj added.
India is Mauritius' largest trading partner and has been
the largest exporter of goods to Mauritius since 2007. In
the financial year 2012-2013, India exported goods worth
USD 1.31 billion and imported goods worth USD 28.49
million. There are over 10,000 Indian nationals living
inMauritius , including 6865 work permit holders and 696
professional occupation permit holders.
Sri Lanka committed to Fight Sea Piracy
Source: Colombo Gazette
10th November 2014
Sri Lanka says it will continue to play a role in antipiracy operations until it is completely eradicated from the
Indian Ocean and Gulf of Aden, in order to provide safe
passage for the sea lanes of communication.An External
Affairs Ministry statement said that Sri Lanka will support
the regional and global initiatives taken by partner
countries for the enhancement of maritime security and
pledged its commitment to work together to combat threats
to maritime security. The statement stated that Sri Lanka
has a unique model placed in the form of public/private
partnership model to fight piracy in the Indian
Ocean.Meanwhile Sri Lanka took part in the 4th UAE
Counter Piracy Conference in Dubai recently. The
International Conference was attended by more than 600
delegates, including representatives from over 50
government and non-government organizations and senior
industry and business executives. Public and private sector
participants from across the region and around the world
created opportunities for a productive dialogue to counter
maritime piracy.The Sri Lankan delegation consisted of
Admiral D.W.A.S. Dissanayake, Advisor to the President on
Maritime Affairs, Abdul Raheem, Consul General of Sri
Lanka in Dubai, Sumith Dassanayake, Director, Middle
East Division of the Ministry of External Affairs and Air
Vice Marshal P.B. Premachandra, General Manager,
Maritime Division, Rakna Arakshaka Lanka Ltd. During
the Conference, Statements were delivered by Foreign
Ministers and senior government officials, which
highlighted the support of the international community for
counter- piracy efforts at sea and on land.The Conference
noted that while the number of incidents of Somali based
piracy has fallen significantly, the economic costs remains
high at more than US$ 3 billion and the human cost to
seafarers and their families is severe. The participants
Nigeria: Piracy - Navy Begs Partners for Gun Boats
Source: allafrica
9th November 2014
Following increase in maritime crimes in the Gulf of
Guinea and West Africa, Flag Officer Commanding (FOC)
Eastern Naval Command, Rear Admiral Obiora Charles
Medani, has appealed to Nigeria's military partners in
17
Europe to donate boats they no longer use to nations in
West Africa. The FOC said: "I am aware that there are very
many (gun) boats in Europe that are no longer being used.
Those boats should be very useful in West Africa if they are
refurbished and technically and logistically sustained and
sent to us." He spoke at the closing ceremony of maritime
security crisis response exercise code named Exercise
OTUM KIET held inside NNS Victory jetty in Calabar. It
was organised by the office of the National Security Adviser
in collaboration with the European Union's Critical
Maritime Routes in the Gulf of Guinea (CRIMGO) and
aimed at enhancing inter-agency cooperation.Medani
added: "We wish to point out to our European partners
that just as they are improving our knowledge, the biggest
issue in maritime security in West Africa is not just skills
but platforms.
Without the capacity to enforce what is learnt, that gap
will continue to be there. So we call on our European
partners to also look at the possibility of providing
enforcement capability alongside the expertise."National
Security Adviser, Alhaji Mohammed Sambo Dasuki,
represented by retired Major General Babatunde Samuel,
said the federal government has approved for the CRIMGO
training of military, paramilitary personnel and critical
maritime security stakeholders to hold twice a year in the
country.He stated that alongside Nigeria, other African
leaders and decision makers have moved forward with the
continent's approach towards safe, secure and stable
maritime domain with the adoption of Africa's Integrated
Maritime Strategy and plan of Action by the African Union.
The EU CRIMGO training coordinator, Eric Glotin,
assured that the continuous training of maritime security
stakeholders and impartation of technical skills will help to
decrease the challenges currently being faced by nations in
West Africa.
replacing the MOSKVA missile cruiser, the report said.
Warning – Oil Tankers at Risk of Terror Attacks
Source: ftwonline
9th November 2014
Security should be raised on oil tankers and other
merchant fleet tonnage to counter the threat of terrorist
attack in the Middle East, said the Malta-based Maritime
Asset Security & Training (MAST) in an advisory. The
company issued this warning after Al-Qaeda insinuated it
could execute "strategic attacks on choke-points of oil
shipments" in its first issue of Resurgence, an Englishlanguage digital propaganda magazine posted online last
month. The resurgence of Al-Qaeda and affiliate
organisations is occurring alongside some of the world‘s
most strategically vulnerable and crowded waterways,
noted MAST. COO Gerry Northwood said: "The largely
unforeseen consequences of the Arab Spring and the ongoing civil wars in Syria and Iraq have allowed terrorist
groups to get on the front foot. They have potential to do
real harm to maritime activity in the Mediterranean, the
Indian Ocean and particularly in the key strategic choke
points – namely the Straits of Gibraltar, the Straits of
Hormuz, the Suez Canal or the Bab El Mendeb Strait.
While Al-Qaeda specifically threatened oil tankers, large
cargo ships and cruise liners could also be at risk.
If the terrorists have the audacity to attack a warship –
in September Al-Qaeda tried to hijack a Pakistan Navy
Frigate – then they will surely think little of attempting an
attack on a cargo ship." In the event of an attack,
Northwood noted, all crew members are at risk,
particularly those on board vessels with hazardous cargoes
"Port authorities also need to think about how they control
movements in the areas under their jurisdiction. A
successful attack on a ship will require a lot of planning by
the terrorist organisation, including reconnaissance on
land and at sea. Harbour authorities should be vigilant and
overt measures should be taken to restrict the movement of
unauthorised vessels in the area," said Northwood.
Fire Breaks Out Aboard 'Unlucky' Russian AntiSubmarine Ship
Source: The Moscow Times
8th November 2014
A fire broke out aboard an "unlucky" Russian
antisubmarine ship that was moored for repairs in the
docks of Sevastopol, a news report said. CLICK on the
photo to view the movie The fire aboard the KERCH
warship was "localized" within an hour and nobody was
injured in the incident, a navy spokesperson said, Interfax
reported. The KERCH had suffered a series of mishaps
during its decades in service, the report said, adding that
the ship had an "unlucky" reputation among Black Sea
Fleet sailors. A fire broke out in the officers' canteen aboard
the KERCH when the ship was undergoing upgrades in
1988, and the flames raged for 25 minutes before they were
noticed, the report said. Nobody was injured and the ship
was restored, Interfax reported. In 1993, the KERCH
rammed into a concrete wall at port and severely damaged
its hull, the report said.
The warship has been moored in Sevastopol, Russia's
Black Sea Fleet base, since June for its latest round of
repairs, which are expected to be completed by the end of
next year, according to Interfax. The KERCH is then
expected to take over as the Black Sea Fleet's flagship,
Indian Navy to Procure 2 Midget Submarines
Source: www.asianage.com
3rd November 2014
The Indian Navy has received clearance to procure two
Swimmer Delivery Vehicles (SDVs) to be used by its elite
Marine Commandos (Marcos) for special operations.
The clearance was a part of the Rs 80,000-crore string
of military purchases cleared by the Defence Acquisition
Council in New Delhi last week. SDVs are mini-submarines
carrying 2 to 6 divers for specialised maritime warfare
tasks. They are also used for clandestine marine
operations.
According to sources, the procurement, worth around
Rs 2,000 crore, will include the Indian Navy and the
ministry of defence (MoD) selecting either of the five
government or two private Indian shipyards for building
the SDVs. "The selected shipbuilder will later enter into a
joint venture (JV) with a foreign company to manufacture
the vessels here under licence," said an IN source. This
18
arrangement is under the 'Buy and Make (Indian)‘ category
of the latest Defence Procurement Policy in 2011, which
was born during erstwhile defense minister A.K. Antony‘s
regime. The government shipyards include the MoDcontrolled Mazgaon Docks Limited, Goa Shipyard Limited,
Hindustan Shipyard Limited in Vishakhapatnam, the
Kolkata-based Garden Reach Shipbuilders and Engineers
and the ministry of shipping-controlled Cochin Shipyard
Limited. The private shipyards are operated by Larsen and
Toubro, along with Pipavav and ABG Shipyards in Gujarat.
"The vessels should reach the Indian Navy after around
four years from the signing of the contract between the
shipyard and the Navy. An empowered committee will
inspect the shipyards and identify one based on its
capacity, experience and expertise," the officer added.
The SDV procurement would be an "enormous"
breather for the Marcos, who are currently without such a
system after the Italian built Cosmos CE-2F/X100 twoman midget submarines was phased out.
for a huge return on investment, which is very risky," he
said.
Now that Al-Qaeda has threatened, Shipping
Industry should beware: MAST
Source: Asian Shipper
4th November 2014
World shipping should increase levels of security to
counter the growing threat of terrorist attack, Malta-based
Maritime Asset Security Training (MAST) has warned. The
ISO-rated company issued the warning after terrorists alQaeda said it could attack oil shipments in its first issue of
"Resurgence", its new online publication."Whilst ISIS
activity has been more recently featured in the western
media, the resurgence of al-Qaeda and affiliate
organisations is occurring," said the MAST press
release."The largely unforeseen consequences of the Arab
Spring and civil wars in Syria and Iraq have allowed
terrorists to get on the front foot," said MAST chief
operations officer Gerry Northwood, OBE.
"They have potential to do real harm to maritime
activity in the Mediterranean, the Indian Ocean and
particularly in the key strategic choke points, namely the
Straits of Gibraltar, the Straits of Hormuz, the Suez Canal
or the Bab El Mendeb Strait," he said.
Mr Northwood said that while al-Qaeda specifically
threatened oil tankers, large cargo ships and cruise liners
could also be at risk. If the terrorists have the audacity to
attack a warship - "in September al-Qaeda tried to hijack a
Pakistan Navy frigate - then they will surely think little of
attempting an attack on a cruise liner", he said.
"Crew training and awareness, citadel drills and
understanding of how quickly events can unfold are
essential. There is no replacement for a good lookout and
knowledge of pattern of behaviour, especially when
approaching choke points, harbours or any constrained
area. These are the most vulnerable places where terrorists
have a good chance of accurately targeting a vessel," he
said.
Is Islamic State Group getting into the Piracy
Business?
Source: defensenews
4th November 2014
An expert is downplaying concerns raised last week by
the United Arab Emirates that Islamic State militants could
unite with al-Shabab terrorists and expand to the seas,
since no evidence has been established of links between
terrorists and pirates. On Oct. 29, UAE Foreign Minister
Sheikh Abdullah bin Zayed al-Nahyan raised the piracy
concerns, calling for the international community to be
more vigilant regarding new threats at the fourth UAE
Counter Piracy Conference in Dubai."As groups like Daesh
[Islamic State] develop ties to criminal networks and arms
networks like al-Shabab, it is essential that we prevent
them from expanding their operations into the sea and
threaten vital channels such as the Strait of Hormuz, the
Red Sea, Bab al Mandab and the Gulf of Aden," he
said."The nexus of criminal groups, violent extremists, and
weak states will require a coordinated response from
governments and the private sector," he said.
"We have to ask ourselves these questions and prepare
ourselves in case a union of [the Islamic State group] and
al-Shabab occurs."The minister described the al-Shabab
group not only as a terrorist group, but "also an extortionist
group that we have mandated a number of activities to
limit their source of funds." Abdullah made his comments
as the Islamic State establishes itself as the world‘s richest
terrorist organization with funds estimated at more than
$2 billion and daily income from black market oil sales.
The UAE is a member of the anti-Islamic State Arab
Coalition fighting over Syrian airspace and has actively
increased its security efforts to combat the organization on
military,
intelligence,
financial
and
ideological
levels."When it comes to addressing the financing, [piracy]
operations are, as I have come to understand, a form of
venture capital," said Todd Chapman, principal deputy
assistant secretary, Bureau of Political-Military Affairs, US
State Department. "Somebody puts up the money for the
boats, for the engines, for the gasoline and the hired hands
to try and send them out to see if they can capture a ship
Sri Lanka Snubs India, Opens Port to Chinese
Submarine Again
Source: Indiatimes
4th November 2014
Despite India's strong reservations about a Chinese
nuclear submarine at the Colombo port in September, the
government has learned that Sri Lanka has permitted
another Chinese attack submarine to dock at a Lankan
port. According to the information received, the second
docking is likely to take place very soon. The presence of
Chinese submarines across Palk Straits has deeply
disturbed the government which is making another call to
Lankan authorities, this time to convey strong displeasure.
The news of a second Chinese submarine docking in Sri
Lanka comes days after the visit of Vietnam PM Nguyen
Tan Dung to India and in complete disregard of India's
message to Lankan defence secretary Gotabaya Rajapaksa
earlier this month.
19
The Chinese fleet of submarines, both diesel and
nuclear-powered (of which three can fire ballistic missiles),
represent some of Beijing's most offensive military
capabilities and have been the focus of international media
when one of them propelled through Indian Ocean waters
for the first time earlier this year, making its way to the
Persian Gulf. In a recent report, Wall Street Journal
described the Chinese submarine fleet as Beijing's most
significant military challenge in the region. And for them to
surface at Lankan ports brings alive some of New Delhi's
worst fears of China's expanding presence in India's
neighbourhood. What seems to have angered New Delhi is
that the permission for docking another nuclear sub comes
even after India conveyed to defence secretary Gotabaya
Rajapaksa, who is also brother of the president, that it had
serious reservations about the Colombo docking on
September 15.
This Colombo stop for the sub in September came while
President Pranab Mukherjee was touring Vietnam and
when Indian and Chinese troops were locked in a face-off
at Chumar in southeastern Ladakh. China later said the sub
had docked in Colombo on its way to the Gulf of Aden.
Netherlands, Spain and Germany, with Spain and Germany
also providing maritime patrol aircraft.
New EU Piracy Trial Aims to Increase Security for
Freight and Container Vessels
Source: The Handy Shipping Guide
15th November 2014
The scientific and technical arm of the European
Commission, the Joint Research Centre (JRC) has
developed, and is now testing, a new software system which
aims to help fight piracy and improve safety at sea for the
myriad freight and containers ships as well as local fishing
fleets. Operating from two maritime operational centres in
Kenya and the Seychelles and known as the Piracy,
Maritime Awareness and Risks (PMAR) system, the
software provides a live picture of vessel traffic activity,
indicating current ship positions on a digital map.
By combining data from a number of different vessel
reporting and earth observation systems, it creates a single
maritime picture of the entire western Indian Ocean. This
region-wide picture complements the smaller scale coastal
one used by individual countries, and can be used also to
combat illegal fishing or immigration. The tool furthermore
allows the production of maps detailing past piracy events
or historic ship traffic density. The system is the result of a
three-year study carried out by JRC researchers with the
intention of building up maritime activity awareness for
authorities in regions affected by piracy. The study was
originally initiated following a request from the European
Parliament and the first phase led to an invitation from the
piracy-affected states for a continuation. This latest one
year trial, with the full collaboration of the countries
concerned, will help to improve maritime surveillance
capability in the area, taking into account existing
infrastructures as well as considering specific regional
needs.
RNZAF Completes Operation Atalanta Tour
Source: defenceweb
9th November 2014
The Royal New Zealand Air Force (RNZAF) this week
completed its first contribution to the European Union‘s
counterpiracy mission, Operation Atalanta off the coast of
Somalia. A P-3K2 Orion long range surveillance aircraft
from the island nation has been conducting aerial patrols
along the Somali coast and Gulf of Aden since October 24.
The contribution forms part of an ongoing commitment by
New Zealand to counter-piracy operations off the coast of
Somalia. Before joining Operation Atalanta New Zealand
forces were deployed with the Combined Maritime Forces
(CMF), a 29-nation-strong counter-piracy mission
operating out of Bahrain.
Operation Atalanta is a multi-national EU maritime
mission launched in December 2008 to deter acts of piracy
and armed robbery within the Horn of Africa region and to
protect World Food Programme (WFP) ships from pirate
attack as they transit the Somali coastline. Speaking about
the contribution by New Zealand, the Commander of Joint
Forces, New Zealand, Major General Tim Gall, said "We
were pleased to be part of the EU Naval Force and help in
the international fight against piracy. The P- 3K2 Orion
crew are experienced and the aircraft was able to conduct a
wide-range of maritime surveillance operations". Aerial
maritime patrols have proven to be an effective method of
deterring piracy. The pirates know that aircraft act as 'eyes
in the sky‘ and can direct counter-piracy warships towards
a pirate action group (PAG) far out to sea. Gall also said
that "New Zealand is used to operating with other maritime
nations and is a key surveillance partner in the Pacific.
Assisting the EU Naval Force multi-national effort was a
good opportunity to contribute to a large-scale operation
further from home. I also know our forces have relished the
opportunity to contribute their expertise to this wellrespected Task Force." Operation Atalanta is currently
supported by EU warships from Italy, Belgian, the
First
domestically
completed in China
produced
drilling
ship
Source: Want
12th November 2014
China has completed its first domestically produced
drilling ship, giving the country extra strength to tap into
the deep-sea drilling sector.The ship, officially christened
REIGNWOOD OPUS TIGER 1 , was funded by the Chinese
Reignwood Group and constructed by Shanghai Shipyard
of China State Shipbuilding Corporation. It is the first
drilling ship with all intellectual property rights exclusively
owned by China.
The exact amount of investment was not revealed, but
industry insiders put the total cost between US$200-300
million. The equipment and facilities of the ship achieved
advanced global standards in terms of cost efficiency,
energy consumption, safety and reliability, making it
suitable for oil and gas exploration in the areas of the South
and East China Seas, according to Liu Shaohua, vice
president of Reignwood Group.A second ship of the same
standard is under construction, and another two will be
built, according to Liu.
20
Maritime Policy & Law
to implement workers‘ group insurance," said Mohammad
Ali Shahin, senior programme manager of Young Power in
Social Action (YPSA), an organisation for social
development. "I have been working as research officer on
ship-breaking industry for 12 years and several times
observed accidents. But I don‘t find any insurance facility
for the workers," he told the FE. He noted that group
insurance coverage is mandatory in the ship-breaking
industry as it is a right of the workers but the owners of the
sector were violating that right. According to the YPSA
counts, 500 of the ship-breaking workers at more than 75
breaking yards have died or been maimed over the last
decade. And, on average, one worker dies in the yards a
week while every day a worker is injured.
Most of the victims are from the poorest communities in
the country, the development researcher stated. The YPSA
survey report also show that in the last 10 months of the
current calendar year 12 people have died in accidents and
more than 150 were injured. Chittagong ship breaking yard
is rated world‘s second-largest. The ship breaking takes
place in the Fauzdarhat area along 18 kilometres northwest of the port city.
The government has declared ship-breaking as an
industry under the ministry of industries as, for domestic
steel requirements, the country is dependent on ship
breaking. Mojibur Rahman Bhuiyan, vice-chairman of
Bangladesh Institute of Labour Studies (BILS), said:
"Several times we have met with leaders of the shipbreakers‘ association for confirmation of insurance facility
to workers, but to no effect yet." Mr Bhuiyan observed that
the owners of the ship-breaking or ship-demolition
industrial units are very powerful. "As a result, they are
breaking the labour law with impunity."
Hefzatur Rahman, President of Bangladesh Ship
Breakers Association (BSBA), said average 300-400
workers have been working under a ship- breaking
company but a large number of them are out of insurance
coverage. He said many of the workers are getting
insurance benefit and the owners are trying to bring all the
employees under insurance facility. Syed Ahmed,
Inspector-General of the Department of Inspections for
Factories and Establishments (DIFE), said country‘s
industrial sector is expanding very fast and they faced
difficulty in ensuring inspections everywhere with limited
manpower. "We have only one-third of inspectors against
our requirement for inspections," he said.
The IG of DIFE said due to shortage of manpower they
cannot visit any ship yard to check the working
environment. As result, the owners of the industries may be
breaking the labour law.
Pinoy Seafarers face Ban in UK, Europe
Source: The Bohol Standard
3rd November 2014
Unless concerns regarding the training of Filipino
seafarers are addressed, the British government will not
allow Philippine maritime professionals to work and
operate in Europe.
At the same time, the British Embassy in Manila
through 1st Secretary Steph Lysaght, said the UK will only
pull out its travel advisory to British nationals to avoid
travel on ferries in the Philippines once substantial reforms
in the safety operations in the sea are put in place.
"We have an issue at the moment with the Philippine
government where we are engaging them on the issue of
training seafarers," Lysaght said during an information
session on the latest Travel Advisory issued by the British
Foreign and Commonwealth Office (FCO).
"We have said we have found problems in the training
of Filipino seafarers."
According to British embassy official, the standard of
training for the people manning the vessel is a big factor in
the standard of domestic shipping.
"We do get questions about why we put the same here, but
the section says because the ships keep sinking," said
Lysaght. "There‘s 80,000 Filipinos…if that (improving
training standards) will not happen there‘s potentially
80,000 at risk."
Ship-Breakers Left Out of Insurance Cover
Source: The Financial Express
4th November 2014
Workers in the ship-breaking industry are still left out
of group-insurance coverage, despite the fact that some
fatal accidents have occurred in recent times.
Absence of proper government inspections is mainly
attributed to leaving thousands of people working at the
ship-breaking yards out of risk coverage. Bangladesh Ship
Breakers Association (BSBA) data show presently more
than 179 companies are directly doing business with more
than 0.1 million people engaged in work. Sector-insiders
said there is still no clear-cut policy for ship-breaking
industry. As such, the risks have been on the increase for
the workers as more hazardous ship-breaking yards have,
meanwhile, had a mushroom growth along the Chittagong
coastal belt.
According to the Bangladesh Labour Law amended into
Bangladesh Labour Act 2013, group insurance of the
workers mandatory for companies with minimum 100
workers. Under the group insurance policy, each of the
workers and his or her nominee in the apparel sector is
entitled to receive Tk 0.1 million for death and Tk 0.125
million for any 'disability while at work‘. "The shipbreaking or ship-demolition industry is playing a vital role
in the country‘s economic development but the sector is yet
Infographic: Maritime Trade Laws
Source: World Maritime News
4th November 2014
Since over 90% of the entire World‘s trade occurs by the
sea, it is important for its entirety to be carefully preserved
in order to ensure that successful trade is not threatened.
21
Numerous developments were made in these laws that
established power over things like general security and
trading practices. The United Nations Convention on the
Law of the Sea is especially dedicated to combating pirates,
addressing safety issues and helping reduce the surge of
piracy around the coast of Somalia and surrounding
countries. This infographic presents you with an overview
of the Law of the Sea, so take a look.
ships as well as noise and vibration measurements.
Old Shipping Laws Need to be Changed: Gadkari
Source: PTI
7th November 2014
After proposing to modify the Motor Vehicles Act 1988,
the Centre is now planning to change rules for the Shipping
Industry, Union Transport Minister Nitin Gadkari has said.
"In shipping, we are very backward. We need all kinds of
infrastructure. All laws are old. It should be thrown out,"
Mr. Gadkari said at a meeting organised by the Madras
Chamber of Commerce and Industry in Chennai.
The Ministry, after observing that the Motor Vehicles
Act 1988 was old and required modifications, announced
its decision to change it recently. "We have the 1988 Motor
Vehicles Act. We are going to change it. We do not need an
RTO (Regional Transport Office).
There was corruption of crores of rupees (in RTO
offices) and we are going to stop it," he said."We need to
bring in transparency. We have already started the process.
If somebody was seen violating rules through the online
system, immediately we can cancel his license or see what
his earlier violations are," the Minister said. Observing that
the country requires nine joint ventures in ship building
projects, he said, "Prime Minister Narendra Modi has taken
a decision.
We are also making a policy (for bringing nine ship
building projects). We are searching for national and
international companies to have joint ventures." "One
company has come forward to do one ship building project.
Similarly, we are also looking at ship breaking projects," he
said.
Similar to Roadways, Mr. Gadkari said, the government
has planned to come out with a consultancy in which 500
projects in the defence sector would be cleared. "In
defence, now we have decided to have a bank for 500
projects through DPR. We are making a DPR (detailed
project report) and setting up a Project Management
Consultancy. For the consultancy, we are giving them
responsibility and 500 projects would be cleared without
any delay," he said. Emphasising on the need to
maximising efficiencies of our transportation
Bureau Veritas Issues Underwater Radiated Noise
Notation
Source: World Maritime News
5th November 2014
International classification society Bureau Veritas has
developed a voluntary notation intended to assist
shipbuilders and operators reduce underwater noise
radiating from ships.
The comprehensive set of standards and measuring
services is grouped as NR614 Underwater Radiated Noise
(URN). It aims to control and limit the environmental
impact on marine fauna of all self-propelled ships and
provide a standard and a system to assess compliance with
specific vessel requirements for underwater radiated noise.
It covers both shallow and deep water conditions, sets
out a dedicated comprehensive measurement procedure,
explains how to manage measurement uncertainties and
sets specific underwater noise level requirements
Jean-Francois Segretain, technical director, Bureau
Veritas Marine & Offshore Division, says, "Underwater
noise radiating from ships is acoustic pollution, and there
is no doubt that it will be the next big area to be tackled by
regulators.This notation, backed by careful research with
an extensive network of partners, means we can help
designers, yards and operators to be ahead of regulation.
And it makes commercial sense.
Reducing underwater noise directly contributes to
reduced noise and vibration levels on board, which
improves passenger and crew comfort. There is also a
strong link between fuel efficiency and noise. Quieter ships
burn less, and we can help make ships quieter and so more
efficient."
One of the main drivers of the notation is to aid
European stakeholders in fulfilling the requirements of the
Marine Strategy Framework Directive. This aims to
improve the environmental state of European waters by
proposing mitigation solutions to be put in place by 2016,
with their efficiency proved by 2020.
The BV notation has been issued in parallel with the
European research project AQUO, which is focused on
underwater noise, and includes the work of 13 partners –
shipyards, hydrodynamics research institutes and bioacoustic experts – from eight countries, and an end user
committee has been built to review the project, including
BV‘s notation.
Several new expedition cruise projects have underwater
noise reduction in their specifications and other passenger
ship operators are discussing BV‘s URN notation and its
services and technical assistance for implementing noise
reduction solutions. Bureau Veritas has signed a
collaboration agreement with TSI S.L. a Spanish company
that specialises in Dynamic and Acoustical design of quiet
IRISL admits EU Sanctions will stay in Place for a
While
Source: Gulfshipnews
12th November 2014
DUBAI: A top shipping boss in Iran does not expect
sanctions against its line and others to be lifted in Europe
this year.
The managing director of the Islamic Republic of Iran
Shipping Lines (IRISL), Mohammad Hossein Dajmar, said
the line does not expect to add any new routes this year
with China, India and Malaysia remaining the mainstay of
port calls for the Iranian containerline.On November 26,
2013, the EU re-imposed sanctions on a number of Iranian
shipping companies, including IRISL.
22
Maritime Environment
GMS Challenges European Commission on Ship
Breaking
Chair of IPCC Working Group I. The impacts of the human
influence on the climate change has been observed on all
continents and if left unchecked, it could have severe
impact on both people and ecosystems.
As surface temperature is projected to rise over the 21st
century under all assessed emission scenarios, it is very
likely that heat waves will occur more often and last longer,
and that extreme precipitation events will become more
intense and frequent in many regions. The ocean will
continue to warm and acidify, and global mean sea level to
rise, the report finds. What is more, by the end of the 21st
century, it is very likely that sea level will rise in more than
about 95% of the ocean area. About 70% of the coastlines
worldwide are projected to experience a sea-level change
within ± 20% of the global mean. However, according to
the report, options are available to adapt to climate change
and implementing stringent mitigation activities can
ensure that the impacts of climate change remain within a
manageable range. There are multiple mitigation pathways
to achieve the substantial emissions reductions over the
next few decades necessary to limit, with a greater than
66% chance, the warming to 2ºC – the goal set by
governments. However, delaying additional mitigation to
2030 will substantially increase the technological,
economic, social and institutional challenges associated
with limiting the warming over the 21st century to below
2ºC relative to pre-industrial levels, the report finds.
Source: gCaptain
6th November 2014
Global Marketing Systems, Inc (GMS), the world‘s
largest cash buyer of ships for recycling, has challenged the
European Commission‘s intention to ban the practice of
beaching by inviting the Commission and top level
shipping industry stakeholders to India to witness the ship
recycling process first hand.
Addressing a high-level industry conference in London,
Dr Nikos Mikelis, non-executive Director of GMS, said ship
recycling yards were improving in Southeast Asia, adding
that the best way to see the improvements was to visit the
yards in person. Dr Mikelis warned however that while
progress was being made in Indian yards, it could "come to
an abrupt end through the ill-advised efforts to ban ship
recycling by beaching through the Unit of Waste
Management of the European Commission‘s DirectorateGeneral for the Environment." "We can only hope that the
administrations of right-thinking European States will
avert the tragic mistake that has been brewing in Brussels
through the regulator‘s lack of understanding on
international shipping and ship recycling," said Dr. Mikelis.
He added: "Progress could also slowly come to a halt if yard
owners who are investing in improvements do not realize
any financial gain through the custom of responsible ship
owners seeking safe and clean recycling in the period prior
to the entry into force of international requirements. As
entry into force of the Hong Kong Convention is practically
subject to accession by India, we have a classic 'chicken and
egg‘ situation if there is no financial motivation to the
yards." Dr Mikelis said the Corporate Social Responsibility
policy of a responsible ship owner who truly cares that ship
recycling standards are sustainable across the industry and
not only within his company "must encourage, through his
custom, yards which have invested in safety and
environmental protection, regardless of whether these
yards are located in South Asia or elsewhere".
IMO Set to Adopt Polar Code
IMO Secretary-General Sekimizu has opened the 94th
session of the Maritime Safety Committee (MSC), which is
being chaired by Mr Christian Breinholt of Denmark. The
MSC is expected to consider and adopt the Polar Code and
related amendments to SOLAS to make it mandatory;
approve SOLAS amendments to make the IGF Code
mandatory; continue passenger ship safety work and
consider other items submitted by the sub-committees. The
Polar Code contains additional design, construction,
equipment, operational, training, and search and rescue
requirements for ships operating in the harsh environment
of Arctic and Antarctic waters, with the aim of preventing
accidents and pollution, and protecting ships, seafarers and
passengers. Because it contains both safety and
environment related provisions, the Polar Code will be
mandatory under both SOLAS and the International
Convention for the Prevention of Pollution from Ships
(MARPOL). Last month (October 2014), IMO‘s Marine
Environment Protection Committee (MEPC) approved the
necessary draft amendments to make the environmental
provisions in the the Polar Code mandatory under
MARPOL. The MEPC is expected to adopt the Code and
associated MARPOL amendments at its next session in
May 2015, with an entry-into-force date to be aligned with
the SOLAS amendments, likely to be 1 January 2017.
Sea Level Forecast to Rise in Over 95% of Ocean
Area
Source: World Maritime News
4th November 2014
The Synthesis Report distils and integrates the findings
of the the Intergovernmental Panel on Climate Change
(IPCC) Fifth Assessment Report produced by over 800
scientists and released over the past 13 months – the most
comprehensive assessment of climate change ever
undertaken "Our assessment finds that the atmosphere and
oceans have warmed, the amount of snow and ice has
diminished, sea level has risen and the concentration of
carbon dioxide has increased to a level unprecedented in at
least the last 800,000 years," said Thomas Stocker, Co-
23
designed & printed by: facebook.com/adworldpk
Source: World Maritime News
13th November 2013