MARITIME NEWS DIGEST (1-15 February 2015) Volume: 03 Issue No: 04 01 01 6th Int'l Maritime Conference kicks off Gwadar Port: Investors asked to hire 02 Local People Alternative Fuel: Pakistan Likely to 03 receive First LNG Cargo by Month end 05 Construction of P3.87-B Strategic Sealift Vessels from Indonesia Starts Tanker Market will keep on climbing if Tonnage Supply is kept under Control Drydocks World sets New Record at Dubai Shipyard Suez Transit Toll Prices announced 05 06 07 08 12 LNG Supply seen falling after 2020 as 12 Oil Plunge Delays Projects ONGC Awards Swiber Major Contract 13 to Build 8 New Offshore Gas Platforms 14 Hi-Tech Radar to bolster East Coast Soon New Nigerian Navy Warship Departs South Africa on Way Home 'Navy keen to set up Training Base in State' US tarries on Aircraft Carrier Tech 21st Century is of the Seas: Navy Chief 14 16 17 18 22 24 16 Ships detained on Hours of Rest 24 Deficiencies in Paris MoU Mariners take aim at Autonomous 25 Sailing “Buoy” 27 Turkish Environmentalists boycott Ship 27 Carrying Radioactive Waste Sub Editor: Tabassum Naz Maritime News of Pakistan Pakistan Navy to be made a Formidable Force: Asif From Editor's Desk Source: Daily Times 14th Feb 2015 The biennial International Maritime Conference of NCMPR is a trademark event. This year's Conference was sixth in the series. Its topic "Maritime Economy, Environment, and Security Co-operation: Bringing the West Pacific and the Indian Ocean Closer" highlights the union of the Western Pacific and the Indian Ocean in the present times. Pakistan Navy obtained Observer status in the West Pacific Naval Symposium in 2014. Moreover, Admiral M Asif Sandila NI (M), then CNS, last year attended the Indian Ocean Naval Symposium (IONS) in Australia. Both these events symbolise that even for Pakistan, the West Pacific and the Indian Ocean are coming closer. The building of Gwadar Kashgar Corridor and the Maritime Silk Route has similar implications. KARACHI: Minister for Defence Khawaja Asif has said that Pakistan Muslim League-N-led government will make Pakistan Navy a formidable force in upcoming days to cope with the challenges at high seas more efficiently. Speaking to journalists during 6th International Maritime Conference, he said that the present government would ensure provision of every facility to Pakistan Navy for making it powerful. He said that at this time our Navy is facing piracy at high seas as well as challenges like climate change and due to that the conference has become much more important. "Pakistan Navy has tremendous participation and active role against piracy at sea," he said. When the readers will receive this issue of MND, the Conference would be over. Let us pray that this year's Conference is again successful and NCMPR's labour is appreciated by all. US Plans to work with Pakistan for Regional Peace Source: Dawn 7th Feb 2015 WASHINGTON: A new US national security strategy, which President Barack Obama sent to Congress, underlines two key areas for engagement with Pakistan, bringing stability to Afghanistan and maintaining peace in South Asia. "We will work with the countries of the region, including Pakistan, to mitigate the threat from terrorism and to support a viable peace and reconciliation process to end the violence in Afghanistan and improve regional stability," he said. "We will continue to work with both India and Pakistan to promote strategic stability, combat terrorism, and advance regional economic integration in South and Central Asia. Mr Obama, who said that extremism was not unique to Islam as other religions had this tendency, too, once again dispelled the impression that the United States was fighting a war against Islam. "We reject the lie that America and its allies are at war with Islam," he said. The strategy paper indicates that Washington intends to continue using unmanned aircraft to target militants. "We endeavour to detain, interrogate, and prosecute terrorists through law enforcement. However, when there is a continuing, imminent threat, and when capture or other actions to disrupt the threat are not feasible, we will not hesitate to take decisive action," it says. "We will always do so legally, discriminately, proportionally, and bound by strict accountability and strong oversight," it adds. The new strategy places great importance on America's growing ties with India and pledges to "unlock the potential" of this relationship. But it also points out that "the scope of our cooperation with China is unprecedented, even as we remain alert to China's military modernisation and reject any role for intimidation in resolving territorial disputes." The new strategy informs Congress that "India's potential, China's rise, and Russia's aggression all significantly impact the future of major power relations". The 2015 National Security Strategy notes that as the world's largest democracies, the United States and India "share inherent Asaf Humayun 6th Int'l Maritime Conference kicks off Source: Daily Times 15th Feb 2015 KARACHI: Federal Minister for Defence Khawaja Muhammad opened three-day 6th International Maritime Conference. The prime organiser of event is National Centre for Maritime Policy Research (NCMPR), a constituent unit of Bahria University, said a statement. Experienced scholars attending Conference from Australia, Canada, China, India, Sri Lanka, USA and United Nation's Food and Agriculture Organisation would address. Maritime Economy, Environment and Security cooperation: Bringing the West Pacific and the Indian Ocean Closer is the theme. Chief of Naval Staff Admiral Mohammad Zakaullah and Director General of NCMPR, vice Admiral Asaf Humayun (Retd) welcomed the guests. Khawaja Asif emphasised on mutual cooperation and efforts to enhance cooperation at sub regional and international levels would address the development of maritime security arrangements. Chief of Naval Staff said the strategic and economic vitality of the west pacific and the Indian Ocean compelled regional states to enhance maritime cooperation beyond traditional spectrum. It is encouraging to see NCMPR had brought this important area under focus and arranged the conference on a very apt theme. The discourse on brining the west pacific and Indian Ocean closer is an admirable idea which will help in analysing the perceptions and perspectives about the changing socio-political, economic and environmental scenario. 1 values and mutual interests that form the cornerstone of our cooperation". "We support India's role as a regional provider of security and its expanded participation in critical regional institutions," President Obama said in the note he sent to Congress. "We see a strategic convergence with India's Act East policy and our continued implementation of the rebalance to Asia and the Pacific." But at the same time, he also pledged to work with India and Pakistan to improve their ties. The most important shift highlighted in this document, deals with US military presence in foreign lands. "Globally, we have moved beyond the large ground wars in Iraq and Afghanistan that defined so much of American foreign policy over the past decade," Mr Obama said, noting that when he entered the White House, the United States had nearly 180,000 troops in Iraq and Afghanistan but now it had fewer than 15,000. The new strategy also identifies countering extreme and dangerous ideologies, keeping nuclear materials from terrorists and preventing the proliferation of nuclear weapons as its top priorities. Ahmed Shah of LUMS presented their papers. Admiral Shahid Karimullah (Retd), former chief of the naval staff, was the guest of honour. During the trade and economy session, Commodore Syed M Obaidullah (Retd) talked about Indo-Pacific as a super maritime region of the 21st Century whereas Dr Azhar Ahmad shed light on the Gwadar-Kashgar corridor and its impact on the region. Federal Secretary Climate Change Division Arif Ahmed Khan was invited as the guest of honour. Dr Ghulam Rasul, Chief Meteorologist, discussed the socio-economic impacts of increasing tendency of typhoons and cyclones. Whereas Dr Yimin Ye from Food and Agriculture Organisation (FAO) Headquarters gave a comparison of fisheries management between the Northwest Pacific and the West Indian Ocean regions. Captain (R) Tariq Masood, Director NCMPR, talked about the ship breaking industry of Pakistan and how it could be made environmentally safe. Foreign delegates, local dignitaries, government officials, experts of maritime sector, academia and naval personnel were in attendance on second day of the international maritime conference. Gwadar Port: Investors asked to hire Local People Footprints: Lost at Sea Source: Express Tribune 6th Feb 2015 Source: Dawn 8th Feb 2015 ISLAMABAD: A seminar was organised by the Gwadar Chamber of Commerce and Industry in collaboration with the Federation of Pakistan Chambers of Commerce and Industry, which was attended by ambassadors, diplomats and industrialists from all provinces. The speakers termed Gwadar a 'golden opportunity' for long-term investment and urged investors to keep in mind the local people and give them employment opportunities in projects to make their investments secure and sustainable. They said Balochistan is rich in mineral and natural resources. It just needs a detailed purpose-oriented survey to develop feasibility of the actual worth, quality and quantity of these resources. The speakers also suggested that the port be declared a tax-free zone to attract investors and donors, Afghan transit trade be shifted to the port to make it fully operational. "There are around 238 Pakistani fishermen languishing in Indian jails for longer than the set punishment of three months for trespassing into alien territory. But even after the passing of that time, they are not deported and kept there while being treated like criminals. Children among them are the most vulnerable. They are not the same after returning from Indian jails. They are quiet most of the time and it seems that they have just forgotten how to smile," says Gulab Shah, who works for the Pakistan Fisherfolk Forum (PFF). In Thatta's Goth Yaqoob Katiar, six homes, including the two children's, wait for the return of the fishermen lost at sea. Most Pakistani fishermen arrested by the Indian coastguard belong to Thatta (only 25 hail from Karachi) as Sir Creek, the disputed territory off India's Gujarat can be accessed from here only. "Of course, when at sea you can always drift into Indian waters and not know it but eyewitnesses have reported seeing Indian boats come into Pakistan's Kajhar Creek to take away the fishermen with their boats from there as well. They are in full force here. They have boats, hovercraft and even helicopters patrolling their Kori Creek while Pakistan barely has a presence of that sort out here," the social worker says. "Unless another fishing boat witnesses what has happened, there is complete information blackout when a boat first goes missing around here. They could also have had an accident like we had assumed about the fishermen going missing during the 1999 cyclone," says Gulab Shah. "But then the lucky ones deported from India come back with news of finding them in Indian jails. Many fishermen caught also require establishing their nationality. For instance, the children from here obviously don't have a computerised national identity card. That's when the PFF comes into action to complete their documentation, which they hand over to the Fishermen Cooperative Society to be forwarded to India so that they Maritime Economy, Environment remain in Focus on 2nd Day Source: Pakistan Today 15th Feb 2015 Some 52 billion dollars have been pledged for many infrastructural projects in Pakistan, out of which $32 billion is to be exclusively spent on energy projects in the next five years. If this materialises, Pakistan will become one of the largest recipients of Chinese outbound investment, claimed Pakistan-China Institute Executive Director Mustafa Hyder Sayed. The event has been organised by National Centre for Maritime Policy Research (NCMPR) in collaboration with Pakistan Navy. The second day of the conference began with the security session in which Zhiyong Hu from China, Rear Admiral (R) Dr Rakesh Chopra from India, Rear Admiral JJ Ranasinghe from Sri Lanka and Prof Sikander can be repatriated to their country. Yaqoob Katiar, the village elder after whom the goth has been named, himself has his only son, 17-year-old Habibullah, behind bars in India. "He appears in my dream sometimes and asks me to pray for him," says Yaqoob's ageing wife and Habibullah's mother, Aina Bibi. "My son Ali Akbar has us all, including his wife and five children, awaiting his return," says Jannat Bibi, another mother whose daughter-in-law and missing son's wife, Zeenat, says that the children keep asking her when their father is coming back. "They think he is still on a fishing trip. They don't understand. And sometimes when they don't stop asking me about what's taking him so long, I just break down. That's when the questions stop and we all have a good cry together," she says. "And with no MPA or MNA here to answer their queries about what is happening about the matter at the government level, these helpless people turn to us. Hearing of their pain, it is sometimes difficult even for us to hold back our tears," says Gulab Shah. pacificus), also known as 'tropical bottlenose' or IndoPacific beaked whale. It's the first time that the species was sighted in the northern Arabian Sea. The endangered species is the rarest and the least known member of the beaked whale family. The Khobar creek is about 150km away from Karachi. The Mangroves of Karachi — facing an Existential Threat? Source: Express Tribune 2nd Feb 2015 The most visible and delicate ecosystem of Karachi, a city with a profound coastal environment, is that of the mangrove forests that thrive in the mingled salt and freshwater where the Indus River meets the Arabian Sea. These forests, however, are under existential threat for a number of reasons, particularly along the city coastline. There is untreated municipal waste and industrial pollution causing still-undetermined amounts of damage, there is exploitation of the trees by the area's communities for use as firewood, building material and fodder and, most alarmingly, there is the chopping down of the forests to make way for coastal development projects. Gwadar, Zhuhai named Twin Cities Source: Dawn 12th Feb 2015 Alternative Fuel: Pakistan Likely to receive First LNG Cargo by Month end GWADAR: A memorandum of understanding (MoU) was signed between Chinese and Pakistani officials to declare Gwadar and Zhuhai (China) twin cities. Zhuhai Vice Mayor Wang Qingl Li, Zhuhai Port Authority director general Hauang Wen Zhong, Gwadar District Council Chairman Babu Gulab and Gwadar Port Authority head Dostain Jamaldini put their signatures on the MoU at a ceremony held. Briefing the Chinese delegation on Gwadar, Mr Gulab and Mr Jamaldini said the city had a small population of 6,000 in 1903, which increased to 45,021 – according to the 1998 national census – and now stood at 85,000. Under the Gwadar Master Plan, they said, several development projects were being executed in the city, including those of hospitals, schools, roads and a dam. Mr Jamaldini said the Board of Revenue and the Board of Investment were working on a plan to declare Gwadar tax-free zone. Under the plan, investment in power, water and infrastructure projects to be executed within 30km radius of Gwadar deep-sea port would be exempted from tax. The facility will also apply to products manufactured in the Gwadar industrial zone. Later, the 13-member Chinese delegation visited Gwadar free trade zone, Gwadar hospital and other projects. The Vice Chairman of the District Council, Naimatullah Hoat and GDA Director General Sajjad Baloch accompanied the guests. Source: Express Tribune 8th Feb 2015 ISLAMABAD: Qatar has assured Pakistan of the delivery of first liquefied natural gas (LNG) cargo by the end of the current month. Earlier, both the countries had agreed on all the clauses of the contract including the volume and contract terms, official sources told. However, the two sides have yet to decide on the price. Once the country quotes its price for LNG, Prime Minister Nawaz Sharif will likely visit Doha in order to seek a discount from the King of Qatar. Officials familiar with the development said Pakistan and Qatar had agreed on the supply of 400 million cubic feet of gas per day (mmcfd) this year. Earlier, Pakistan was supposed to import 200 mmcfd in the first year and 400 mmcfd in the second year. The two sides have also agreed on a 15-year supply contract. Let's Celebrate Karachi's Coastal Ecosystem Source: Express Tribune 8th Feb 2015 A significant percentage of major global cities are coastal cities as they act as hubs of national trade, commerce and finance. They also offer multiple forms of recreation that an inland city cannot, including beaches, sensitive coastal ecosystems and fishing. With growing awareness that global challenges such as climate change seriously threaten coastal cities -their sensitive ecosystems and their people-various measures are being taken to protect and conserve coastal land and resources against the likely threats of rising sea levels and increase in coastal calamites. While the relevant government departments fail to take any initiative and the private sector also has not Rare Whale Successfully released in Pakistani Waters Source: Dawn 13th Feb 2015 KARACHI: A rare whale that got entangled in fishing net in waters about 122 nautical miles off the Khobar Creek was successfully released by fishermen recently, it emerged. The species about four metres long was later identified as Longman's beaked whale (Indopacetus 3 considered investing in such a venture; exciting, innovative and workable conceptual and design ideas are coming from the academic realm. One such project is the final-year thesis, Aquaria Complex, prepared by Anam Yamin, a Dawood University of Engineering and Technology Department of Architecture student. The proposed Aquaria Complex, a commercial and educational theme park, is aimed to serve as a complete recreational space for all age groups, displaying marine animals and plants; particularly oceanic, pelagic, fishes and mammals. In addition, the facility is also designed to serve as a space for facilitating education and scientific study. Another fact that needs to be highlighted here is that not just this design project but many other innovative and well researched academic projects are being prepared in the academic institutes of higher learning in Karachi. five major coal-based projects previously planned for Punjab had been dropped for the time being, except the 1,360MW plant in Sahiwal, because so much reliance on imported coal required huge investments in port facilities, excessive expenditures on upgradation of Pakistan Railways and, on top of all, environmental concerns and longer time required to complete the exercise. Moreover, the coal-based projects attracted investments only from China, while investors from all over the world showed interest in LNG-based projects. LNG Demand: Brunei and China join Race, Show Interest in Gas Export KARACHI: The Model Customs Collectorate of Port Muhammad Bin Qasim has collected revenue amounting to Rs 18.41691 billion in the month of January 2015 against its set target of Rs 23.71469 billion with the shortfall of Rs 5.29798 billion in terms of revenue achievement against its set target during the fiscal year2014-15. According to statistics, the MCC Port Muhammad Bin Qasim has collected an amount of Rs 5.43529 billion in share of Custom Duty against its set target of Rs 5.77247 billion in the month of January 2015 with the shortfall of Rs 337.18 million. The MCC Port Muhammad Bin Qasim has collected an amount of Rs 203.69 million in share of Federal Excise Duty in the month of January 2015 against its set target of Rs 248.40 million with a shortfall of Rs 44.71 million. Similarly, the MCC Port Muhammad Bin Qasim has collected an amount of Rs 2.45988 billion in share of Income Tax during the month of January-2015 against its set target of Rs 3.11912 billion with a shortfall of Rs 659.24 million. The sources informed Customs Today that the Collector MCC Port Muhammad Bin Qasim Surriya Butt has asked the officers of the Collectorate to ensure achieving the revenue targets in all means and take effective steps in this regard. It is pertinent to mention here that it was the first time that the MCC Port Muhammad Bin Qasim has missed revenue targets in all revenue heads including Customs Duty, Sales Tax, Income Tax and Federal Excise Duty. Customs Falls Short of Overall Revenue Target by Rs 5.29798b in Jan at PQA Source: Custom Today 5th Feb 2015 Source: Express Tribune 8th Feb 2015 ISLAMABAD: Seeing a handsome opportunity to cash in on Pakistan's growing energy appetite, state-owned energy companies of Brunei Darussalam and China have offered multibillion-dollar deals for the supply of liquefied natural gas (LNG) in a government-to-government contract. Separately, Pakistan is close to sealing an LNG import agreement with gas-rich Qatar to bridge the widening gap between demand and supply of energy. According to officials familiar with the development, PB Trading Sendirian Berhad, a wholly-owned subsidiary of Brunei National Petroleum Company Sendirian Berhad also known as Petroleum Brunei, a national oil company, and Petro China, one of China's largest petroleum companies, have expressed interest in exporting LNG to Pakistan. In addition to these, officials said, Pakistan would explore the possibility of importing LNG from countries like Australia, Nigeria, Indonesia, Algeria, Russia and Oman, which are exporting gas to many countries of the world. Malaysian firm Petronas and Russia also aspire to supply LNG to Pakistan in a government-to-government arrangement. However, they have made it clear that they will be able to provide gas only after two years. Arabian Sea Imposes a Threat to Karachi and Coastal Cities of Sindh LNG replacing Imported Coal to Generate Power Source: Pakistan Tribe 10th Feb 2015 Source: Express Tribune 5th Feb 2015 ISLAMABAD/KARACHI: Standing committee of ISLAMABAD: The government said that it had put on hold all power projects based on imported coal, except one in Sahiwal, and would instead set up LNG-based plants of 3,600MW in major load centres of Lahore, Multan and Faisalabad at a maximum generation cost of Rs8.85 per unit. At a background briefing, a senior official told that the country's future and energy security depended on domestic coal and hydropower generation because of its stable-to-declining costs over the longer run, but the shortterm solution to the energy crisis had now been put on a project which would use liquefied natural gas. He said the Science and Technology cleared reported in Senate that Karachi and major part of Sindh will be drown in sea till 2060 as the sea is advancing towards Karachi. According to details the committee was told that Badin and Thatta will drown by 2050 and Karachi by 2060 if immediate steps were not taken to check sea intrusion along the coastal areas of Sindh. The committee presided by Prof Sajid Mir was also informed that United Nations (UN) programme of environment control had listed Pakistan in those countries which will be effected by the increasing surface of sea. 4 Ports & Shipping Navy: Construction of P3.87-B Strategic Sealift Vessels from Indonesia Starts joined ClassNK's register in 2014, marking the fourth straight year that the Japanese classification society registered over 20 million in new tonnage. ClassNK's growth in 2014 comes in spite of a global downturn in the market which has seen newbuilding deliveries fall by an estimated 15% according to Clarkson Research Services. ClassNK registered a total of 548 newbuildings with a combined total of over 16 million gt, or more than 25% of all newly built tonnage in 2014 based on Clarkson's figures. Growth was also driven by transfers from other societies which reached a record 285 vessels in 2014, including ClassNK's first US-flagged and German-flagged vessels. Continuing trends from previous years, European shipowners, led by German and Greek owners, accounted for roughly half of all transfers to the NK register in 2014. Source: Philstar 1st February 2015 MANILA PHILIPPINES: The construction of the strategic sealift vessels to be acquired by the Philippines from Indonesia has started, in a move that will bring the Navy closer to its goal of improving its capabilities. Navy Public Affairs Chief Cdr Lued Lincuna said a steel-cutting ceremony marking the start of the construction of the ships was held in Surabaya, Indonesia last January 22."These forthcoming landing platform dock strategic sealift vessels will improve the capacity of the Philippine Navy and boost the defense capabilities of the country," Lincuna said in a statement. "These vessels are critical assets for civil-military operations due to their capability of transporting large number of soldiers, logistics, and supplies," he added. The vessels can transport supplies and a large number of soldiers and can be used for humanitarian assistance and disaster response. They will serve as the Navy's floating command center when conducting operations. Each vessel can accommodate three helicopters. Lincuna said the Navy's Augusta Westland-109 helicopters would be placed on board the ships. The Navy is expecting the first vessel to be delivered by May 2016. Eastern Pacific Demolition sends Third Capesize Japanese Shipyard Reports Orders for 20,000 TEU Ships Source: Journal of Commerce 2ND February 2015 Japan's Imabari Shipbuilding Co., Ltd. says it has secured orders for 11 containerships with capacities of 20,000 twenty-foot-equivalent units, and is adding a large dry dock for their construction. Imabari did not identify the carrier that placed the orders but said it was an overseas shipowner, and that the order was secured with the cooperation of Japan's Marubeni Corp. The ships would be the first of 20,000-TEU capacity. Currently the largest are the Mediterranean Shipping Co.'s 19,224-TEU MSC OSCAR and China Shipping's 19,100-TEU CSCL GLOBE other carriers are preparing to add ships close to this size. Evergreen said this month it had finalized plans to charter 11 ships of 18,000-TEU capacity. The Wall Street Journal reported this week that Maersk Line is talking with shipyards about orders for 10 ships of up to 20,000-TEU capacity. Maersk led the way into the latest generation of container ships in 2011 when it ordered its first of 20 Triple-E ships with capacities of more than 18,000 TEU. for Source: Tradewinds 2nd February 2015 Idan Ofer's Eastern Pacific sends its third capesize bulker in a week to the torch while Greek owners offload 1990s built tonnage Idan Ofer is taking the lead in a rush to sell capesize bulkers for demolition. His Eastern Pacific has sold as many as three units in one week, according to sources. The freight market for the biggest bulkers remains abysmal and incapable of covering owners' operating costs. This week, six capesizes, all built in the 1990s, are understood to have been sold for torching. It means a total of nine units have been disposed of in January alone versus 24 in the whole of 2014. Two Greek owners have also sold capesizes for recycling this week. Carras (Hellas) has sent the 161,000-dwt AQUADONNA (built 1995) for demolition in Pakistan for $417 per ldt, or $8.4m. Meanwhile, US-based Icon Capital Corp has sold two containerships that have been on longterm charter to Zim for demolition. Daewoo Shipbuilding wins US$200 mln Order for Oil Carriers. Source: Yonhap 2nd February 2015 Daewoo Shipbuilding & Marine Engineering Co., the world's second-biggest shipyard, it has signed a deal totalling US$200 million to build two crude oil carriers for Greece's Maran Tankers Management. The contract is for two 319,000-ton oil tankers, Daewoo said without specifying the delivery date, citing a confidentiality agreement with the Greek company. Maran Tankers Management is an affiliate of Greece's biggest shipper Angelicoussis Group. With the latest deal, the South Korean shipbuilder has obtained orders for six ships worth an estimated $1 billion so far this year. ClassNK Overshoots 20 Million New Tonnage Mark Source: World Maritime News 2nd February 2015 833 new vessels with a combined total of 21,466,272 gt 5 ABB wins Milestone Contract with China's Leading LNG Shipyard Mild Shift in Ship Speeds Expected Source: world Maritime News 3rd February 2015 Source: ABB 3rd February 2015 A mild shift in the speeds of containerships, especially on the head-hole, can be expected as new liner mega alliances endeavor to speed up their transit times, according to UK shipping consultant Drewry. Aiming to polish up their brands, liner giants that have joined their operating pools are likely to speed up so as to attain greater performance reliability, which has spiraled down over the past few months. The latest data from Drewry shows that the aggregate on-time performance for the Asia-Europe, Transpacific and Transatlantic trades dropped to 58% in December, down from 62% in November and 64% in October. The gentle shift toward higher speeds is likely to be influenced by the oil price drop as well. However, structural overcapacity will remain a barrier in how much can these speeds be accelerated since there is not enough cargo to satisfy the number of existing ships, especially having in mind their ever increasing size. As a result, Drewry believes that despite the shift, dropping of slow steaming practice is not an option since there is not enough cargo to resort to full designer speeds. ABB will provide advanced electrical propulsion systems for four LNG carriers built by Hudong-Zhonghua Shipbuilding Group. ABB, the leading power and automation technology group, announced that it will deliver advanced electrical propulsion systems for four LNG carriers under construction by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. The LNG vessels are a joint venture between China National Offshore Oil Corporation (CNOOC), China LNG Shipping (Holdings) Limited (CLNG) and Teekay, and will operate under 20-year timecharter contracts with Methane Services Limited, a wholly owned subsidiary of BG. As a leading supplier of electrical systems for the marine industry, ABB continues to deepen cooperation with customers like Hudong-Zhonghua Shipbuilder and utilize our rich industrial experience and technical expertise to support the further development of China's shipbuilding industry," says Heikki Soljama, Managing Director for ABB's Marine and Ports business. For the marine industry, ABB's extensive product portfolio also includes electrical control systems for the LNG liquefaction process, waste heat recovery systems for container ships, turbochargers for marine diesel and gas engines and services to optimize asset performance, such as remote diagnostics to ensure highest possible level of uptime. Tanker Market will keep on climbing if Tonnage Supply is kept under Control Source: Hellenic Shipping News 4thy February 2015 As has always been the case in shipping, the very good start into 2015 by the tanker market has been a boon for tanker owners. Rates are more than healthy and the general consensus among analysts is that the outlook, at least for this year is favorable. However, with oil prices poised to stage a comeback sometime later in the year and more ships entering the market, owners will have to be careful when moving forward with the acquisition of more units in their companies' fleet. According to the latest weekly report from Poten & Partners, "there is an expectation that a significant number of large crude oil tankers will be employed in floating storage as a result of a widening contango in the oil markets. As these vessels leave the spot market, spot rates will experience another boost. Japan's Shipping Heavyweights stay in Black Source: World Maritime News 3rd February 2015 Japan's shipping trio Nippon Yusen Kabushiki Kaisha (NYK Line), Mitsui O.S.K Lines (MOL), and Kawasaki Kisen Kaisha ('K' Line) have recorded profits for the nine months ending December 31, 2014, with MOL being the only carrier to record lower profit than in 2013. All three carriers benefited from lower bunker costs, but also said that congestion at the U.S. West Coast ports is hurting their overall container volumes and raising costs in trans-Pacific container services. NYK Line posted around USD 269 million net profit for the nine-month period, a 0.3% increase compared to the same period last year. The company says the increase is modest due to factors including provisioning of reserves for antitrust-related losses. Liner trade revenue increased by 12.4% to YPY 515.4 billion (USD4.38bn), even though additional expenses were caused by unexpected reduced sailings and shortage of tonnage triggered by port congestion in the West Coast of North America. NYK Line raised its full-year forecast for the fiscal year ending March 31, 2015, saying that it expects to see USD 370 million net profit, with weaker yen and lower bunker prices being the main reasons for the increase. MOL reported USD 206.9 million net income for the nine months ended December 31, 15.7% percent less than USD 244.8 million earned in 2013. MOL attributed the decline to stagnating economies of both developed and emerging countries, with the exception of the U.S.A. DP World's Volume Growth beats Expectations Source: World Maritime News 4th February 2015 DP World Limited's gross container volumes grew by 8.9% on reported basis and 8.0% on a like-for-like basis during 2014, the latest figures show. Namely, DP World handled 60 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals during 2014. DP World said that the growth in 2014 was largely driven by the Asia Pacific and India Subcontinent region, Europe and UAE terminals. The UAE handled 15.2 million TEU, representing growth of 11.8% for the year, whereas Europe showed a solid return to volume growth in 2014. At 6 a consolidated level, DP World's terminals handled 28.3 million TEU during 2014, a 9.5% improvement in like-forlike performance. On a reported level, the growth rate of 8.7% in consolidated volumes reflects the deconsolidation of Hong Kong assets in June last year, the company explained. "With volume growth of 8.9% in 2014 we believe we have once again outperformed the expected 2014 market growth of approximately 5%," said DP World's Chairman Sultan Ahmed Bin Sulayem. According to Sultan Bin Sulayem, the company is expected to meet full year market expectations given the strong volume performance in 2014. DP World will be adding new capacity this year in The Netherlands, Turkey, India and The United Arab Emirates. "Although some of our terminals continue to operate in a challenging macro environment, market conditions across the portfolio are expected to be generally favorable in 2015. This coupled with the addition of new capacity, stands us in good stead for volume growth in line or slightly ahead of the market this year," he concluded. behavior of the asset prices for the 5-YR and 10-YR old vessels, there was a clear differentiation in velocity of price movements. Hence, as determined, the older vessels outperformed their younger counterparts when prices were increasing, but also experienced more negative volatility in market downturns. Drydocks World sets New Record at Dubai Shipyard Source: Hellenic Shipping News 5th February 2015 Source: TradeArabia News Service 4th February 2015 As the dry bulk market has been suffering of late and flirting with historical lows, demand for newbuilding bulkers has plummeted as well, at least until prices quoted from shipyards follow a similar course. As such, overall demand for newbuildings has remained at stable, albeit low levels. In its latest report, shipbroker Clarkson Hellas noted that" Clients of Maran Tankers have placed an order for two firm 319,000 DWT VLCCs at DSME for delivery in 2017. In November, Clients of Maran were reported to have swapped two orders among total four VLCCs at DSME into 174,000 CBM LNG Carriers. Arab Maritime Petroleum Transport (AMPTC) in Egypt has contracted two firm plus two optional 158,000 DWT Suezmax Tankers with HHI. These vessels are understood to be coated and will be delivered throughout 2017.The Container market has seen a single order this week, with Imabari Shipbuilding in Japan announcing a contract for eleven firm 18,000 TEU Container Carriers with Shoei Kisen Kaisha. These vessels will be delivered throughout 2018 and 2019 from Imabari's Marugume yard and will go on a long term charter to Evergreen in Taiwan. Finally in Gas, Mitsubishi Heavy Industries have announced an order for two firm 177,000 CBM LNG Carriers at their Nagasaki yard. The first vessel is set for delivery in 2018 to NYK Line and the second vessel is set for delivery in 2019 to Mitsui O.S.K. Lines. MOL Car Carrier Rescues Drifting Fishermen Source: MOL 5th February 2015 The MOL operated car carrier ASTRAL ACE found drifting castaways near Malay Peninsula in the South China Sea, and was able to safely rescue two Malaysian and three Indonesian fishermen. The members were turned over to the Malaysian Maritime Rescue Coordination Center. Newbuilding Orders on Stable Mode as Ship Owners take a look at the Economy Drydocks World, an international service provider to the shipping, offshore, oil, gas and energy sectors, has set a new record by currently having nine rigs at the Dubai shipyard. Khamis Juma Buamim, chairman of Drydocks World and Maritime World, said: "Drydocks World is proud of our ability to provide solutions to any technical challenges and offer clients the services that fully meet their requirements." "Our continued improvements on the advanced state-of-the-art facilities provides on stop solutions to the projects. We ensure the integrity and safety of all personnel and projects, providing operational efficiency while mitigating all risks," he said . "Our services have evolved with the needs of the industry and our proven ability to accommodate nine rigs demonstrates the extensive infrastructure and world-class capabilities of Drydocks World stressing that the Group's strategy is clear and based on total development, innovation, technical and engineering creativity," he added. Drydocks World has expanded its operation by establishing a dedicated rig division to ensure focused attention on rig projects to meet with clients' requirements. 10-YR Old Tankers Counterparts to Outperform Younger Asia Dry Bulk-Capesize Rates to stay near 6-year Lows, Tonnage Glut Weighs Source: World Maritime News 6th February 2015 Source: Reuters 7th February 2015 ` Ten-year old tankers will outperform their younger counterparts, according to McQuilling Services Industry's Sharpe Ratio analysis on VLCC and Suezmax tankers. McQuilling bases its argument on recent asset prices for the 10-YR old VLCC and Suezmax vessels, which have appreciated by 21.2% and 44.9%, respectively when measured by the percentage growth in the last twelve months. The analysis shows that despite the similar Rates for capesize bulk carriers are set to remain mired near six-year lows as an oversupply of ships outweighs any pick up in chartering activity, brokers said. "Freight rates are not really going anywhere. There are too many ships and not enough cargo volume," said one Singapore-based capesize broker. While the big iron ore miners, including Vale, Rio Tinto and BHP Billiton, had all chartered ships in 7 the past week, they carefully managed their fixing activity to keep a lid on freight rates, the broker said. Freight rates on key capesize routes from Australia and Brazil to China have come off the six-year low hit in early January but remain close to that level. Charterers are quoting rates of $11 a tonne for March cargoes from Brazil to China, while rates for a voyage from Australia to China will not move above $5 a tonne "any time soon", the broker said. "Rates across the board have improved slightly but this is only a compensation for the increased bunker costs in the recent oil rally," Norwegian shipbroker Fearnley said in a weekly note. Freight rates for smaller supramax bulk carriers had fallen to $5,000 per day for a roundtrip from Indonesia, Fearnley said. 'China containers', though the lead on Hamburg remains small. In 2013, Hamburg handled 2.3 million TEUs; Rotterdam handled 2.4 million. Anticipating the definitive figures, the Port of Rotterdam Authority expects an increase of at least 10% in 2014. The Chinese share of Rotterdam's throughput will be significant and likely to increase again in 2015, Castelein predicted. There are currently 18 container services per week between Chinese ports and Rotterdam. Sri Lanka approves $1.5 billion China Funded Port Project to Avoid „Misunderstanding' with Beijing Source: customstoday.com.pk 10th February 2015 Maersk inks Feedership Series at Cosco Shipyard Sri Lanka's new government will go ahead with $1.5 billion China's funded port city project planned by the previous president to avoid misunderstandings with Beijing. Xi Jinping, China's President officially launched the city's development on an artificial island during a visit to Sri Lanka last September. Chinese Assistant Foreign Minister Liu Jianchao will meet Sri Lankan Prime Minister Ranil Wickremesinghe. Senaratne said an environment impact assessment was completed for the reclamation part of the project but not for the city development. He added the project will be discussed along with any alternations during a visit by Sirisena to Beijing next month. Under Rajapaksa, relations with China strengthened, with heavy Chinese investment. The port city project became the face of Chinese influence in the country. Source: tradewinds 7th February 2015 Maersk Line has awarded up to $351m-worth of boxship newbuilding orders to Singapore-listed Cosco Shipyard Group. Informed sources say three Chinese shipbuilding companies — Yangzijiang Shipbuilding, Yangfan Group and Cosco — were among the final bidders for Maersk's feedership newbuildings but Cosco ousted the other two by offering an attractive price of $39m each, some $3m less per unit than its competitors. The Danish owner has signed up for seven firm ice-class, 3,700-teu vessels, plus two options. The wide-beam units are scheduled for delivery in 2017 and 2018. Suez transit Toll Prices announced Adani Ports opens Kandla Bulk Terminal Source: Gulfshipnews 8th February 2015 Source: World Maritime News 12th February 2015 Transit tolls at Egypt's Suez Canal will not change much this year. Authority chief Mohab Mameesh said that the canal is on track open its second lane as expected in August. The canal earned a record $5.455bn in revenue last year. "The fuel price has dropped all over the world. Raising the transit toll would make it easier for ships to travel around the Cape of Good Hope," Mameesh said on plans to keep pricing the same this year. The only change for 2015 would be for LNG ships, which will see a toll discount they had cut to 25% from 35. India's port developer Adani Ports & Special Economic Zone (APSEZ) opened a bulk terminal at Tuna Tekra, Kandla Port, with an annual handling capacity of over 20 million tonnes. The consortium led by APSEZ, formed a Special Purpose Entity named Adani Kandla Bulk Terminal after winning the contract in June 2012 to set up the bulk terminal. The terminal was completed within the stipulated time frame. The dry bulk cargo handling terminal facilities includes a T shaped jetty with four bulk berths, a vessel handling capacity of 1,00,000 DWT with (-) 16.2 m CD dredged depth and a capacity of 20 MMTPA. China favours Rotterdam Port Source: World Maritime News 9th February 2015 Khalifa Port Container Terminal Achieves 26% Growth in 2014 In 2014, Rotterdam became the first European port to handle more than 3 million TEUs (20-foot container units) going to or coming from China, Port of Rotterdam Authority CEO Allard Castelein said during the first quarterly meeting of the Rotterdam Port Promotion Council (RPPC). In 2008, Germany's Port of Hamburg was still handling the most 'China containers': 2.6 million against Rotterdam's 2.2 million. The German port suffered greatly during the crisis of 2009, said Castelein, whereas Rotterdam's throughput only declined moderately. Since then, Rotterdam has been the main European port for Source: Abu Dhabi Terminals 11th February 2015 Abu Dhabi Terminals (ADT) – Manager and Operator of Khalifa Port Container Terminal – is celebrating its solid performance and achievements in 2014 that saw its volume reach 1.13 million TEUs (20-foot-equivalent-unit containers). This represents a 26% year-on-year growth and sets a new standard in regional growth rates. ADT 8 secured the exclusive right to manage and operate the first Khalifa Port Container Terminal (KPCT) by signing a 30year concession in 2012 with Abu Dhabi Ports. The port operator garnered a number of achievements in 2014 and its more than 20% year-on-year growth over the past five years can be attributed to the strong relationships with the shipping industry and the trade community. It's expected that this growth rate will be built on in 2015, and continued strong performance will be reached by year's end. Besides handling a record number of containers, 2014 saw productivity rise to an average of thirty-four GMPH (crane moves per hour) and KPCT named in the top ten growing container terminals in the world. Update: Baltic Dry Index Drops to Lowest Ever Source: World Maritime News 11th February 2015 The Baltic Dry Index has fallen to 553 points, down 1 point from the record low set in July and August 1986. Dry bulk owners have seen their earnings slashed as a result of the index fall, some of them even forced to resort to bankruptcy, as it was the case with Copenship. What is more, it is feared that the continued decline may have a ripple effect on bulk owners causing more bankruptcies as shipping rates plunge even further. The Baltic Dry Index has fallen close to 50% over the past 12 months. One of the main reasons for the costs of shipping bulk commodities declining to a record low is China's weakened demand for coal, with the country's seaborne coal imports sliding by 10% in 2014. Another crucial reason is overcapacity within the market, triggered by ship-owners ordering three times more bulk carriers in 2013 than in 2012, on the back on China's growing demand for coal. China Lifts Ban on Valemaxes Source: World Maritime News 11th February 2015 Chinese Ministry of Transport has issued a circular on the design of 400,000 DWT bulk carries entering Chinese ports amending its previous design layout. In line with the circular, the eligible vessels must not exceed a deadweight tonnage of 403,844 dwt and need to be 362m long, 65.6m wide, 30.5m deep and feature a draught of 23m. The previous design code covered ships up to 350,000 DWT. As all bulkers of Brazilian iron ore producer, Vale, meet the set out criteria, the circular is seen as lifting of Chinese threeyear old ban on 400,000 bulkers, known as Valemaxes. Valemaxes were banned from mooring in the country's mainland ports in 2012 amid safety concerns. However, the ban was seen as an attempt to shield national carriers such as China Ocean Shipping Group (COSCO). Easing of the ban comes in the wake of Vale's deal with COSCO from last September on the lease of ten very large ore carriers to be built by China Merchants. China starts First Maritime Silk Road Cruise Source: World Maritime News 11th February 2015 BEI BU WAN ZHI XING, the first Chinese cruise liner to sail along the 21st Century Maritime Silk Road, has started its maiden voyage from the Behai Port in China's Guangxi Zhuang Autonomous Region, ECNS reports. On its way to Malaysia's Kuantan Port, the cruise ship will make stops in Vietnam and the Gulf of Thailand. BEI BU WAN ZHI XING is a 135-metre-long cruise ship capable of accommodating 400 people. Chinese President Xi Jingpin proposed the re-establishment of the Maritime Silk Road back in 2013, to reinforce the maritime links between China and the ASEAN. Libyan Hariga Port resumes Oil Exports 'First' direct China-Myanmar Trade Link Launched Source: World Maritime News 13th February 2015 Source: Container Management 12th February 2015 Libya's Port of Hariga saw its first oil tanker, the Greece-flagged MINERVA ZOE, after Petroleum Facilities Guards (PFG) terminated their strike over belated salaries, followed by a storm which further delayed the start of operations at the country's only functioning onshore port exporting oil, Reuters reports. The MINERVA ZOE will load 725,000 barrels of oil destined for Italy, according to the port's officials. Inchcape Shipping Services reports that the Port of Zuietina is also gridlocked by industrial action, while the ports of Ras Lanuf (Rasco), Ras Lanuf 'Harouge', Benghazi and Es Sider are closed due to armed clashes. The ports are caught in the midst of a conflict between the internationally recognized government of Prime Minister Abdullah al-Thinni, controlling the eastern part of the country, and the selfproclaimed government of Libya Dawn, which controls the country's capital of Tripoli, and has reinstated the old parliament and the ministries. MCC Transport has started a service between China and Myanmar, to tap into a country which it views as having great potential for growth in international trade. The new Intra Asia 5 (IA5) service will reduce transit time from ports in China to Yangon, to 13 days from 18 in the case of Shanghai to Yangon, without the need for transhipment of cargo in southeast Asia, according to the company. It claims the route is the first direct trade link between China and Myanmar The new service will run on a 56-day rotation covering Shanghai, Singapore, Port Kelang (Malaysia), Sihanoukville (Cambodia), Busan (South Korea), Ho Chi Minh City (Vietnam) and other ports. MCC Transport, a sister company of Maersk Line of Denmark, is deploying eight 1,100 teu vessels on the service. The two companies have built up their presence in Myanmar in the past two years by first purchasing space from other shipping lines, then through setting up an agency office in the country last May. 9 10 11 Maritime Trade & Economy Economic Boom puts Pressure on India's Ports blocks and refurbishing of its physical plant. Source: world Maritime News 3rd February 2015 LNG Supply seen falling after 2020 as Oil Plunge Delays Projects India's economic growth looks set to surpass China's for the first time in 2016, lending support to both east and westbound container trade expansion, according to Drewry Maritime Research. However, the predicted uptick in Indian container trade depends on the ability of the new government to deliver on promises. India is currently struggling to realise its full potential, with port infrastructure shortcomings and a creaking inland transportation sector. Both of these issues have so far frustrated attempts to boost its global manufacturing presence. While money has been committed to port projects to remove congestion, more private investment is needed, according to Drewry. India has cemented its position for significant trade growth in the medium term, which will feed growth in Europe-Middle East/South Asia routes, Drewry reports. After a 20 year hiatus, free trade agreement talks are back on the table between Europe and India as the latter strives to boost business flows between the two countries. Eastbound Europe to Middle East/South Asia container traffic had already recorded year-on-year growth of 18.3% by November; with trade relations improving this growth is expected to continue, says Drewry. Westbound traffic rose by 6.6% y/y over the same period. Source: G Captain 5th February 2015 Global output of liquefied natural gas may shrink after 2020 as falling oil prices prompt producers to withdraw plans for new plants and delay investments. Projects that sell LNG linked to the price of oil will be under pressure with crude between $50 and $60 a barrel and more than $60 billion in cash flow may be affected this year, Wood Mackenzie Ltd. said. Projects with more than $100 billion of investment are at risk of delays or cancellation, according to the Edinburgh-based consultant. Companies have moved to cut costs after benchmark crude slumped almost 50 percent last year as the U.S. pumped oil at the fastest rate in more than three decades, exacerbating a global glut. Royal Dutch Shell Plc, BG Group Plc, Petroliam Nasional Bhd and Chevron Corp. have cut or delayed spending on LNG projects from Australia to Canada. Long-term LNG contracts can be priced off by up to 15 percent of oil prices, according to a Jan. 5 report by Bloomberg New Energy Finance. Spot LNG prices fell to their lowest since June 2010 at $7 per million British thermal units on Feb. 4, according to data from New Yorkbased Energy Intelligence's World Gas Intelligence publication. MHI splits Shipbuilding Sector Sunk Costs "From 2018 to 2022, the market is very well supplied as there are new U.S. and Australian projects ramping up," Nicholas Browne, Wood Mackenzie's senior manager for primary fuel research said in a phone interview last month. "Producers will be affected because costs are sunk into projects whereas the returns they get are significantly less as the lower oil price works its way into contracts," said Browne. Costs in Asia, the region that buys the most supercooled fuel, will this year average below $10 for the first time in four years as new projects in Australia and the U.S. boost supply through 2016, Bloomberg New Energy Finance said. "Low oil price is good for the LNG business because it drives out the unsuccessful projects," said Bolton. Source: World Maritime News 5th February 2015 Japan's Mitsubishi Heavy Industries (MHI) is pushing on with the last year's plan to establish two new group companies at its Nagasaki Shipyard & Machinery Works' Koyagi Plant – one to undertake ship construction and the other to manufacture hull blocks. MHI also plans to transfer its operations in construction of large-size commercial ships in the Nagasaki district to the new firms. MHI will separate cruise ship construction from its commercial ship business and operate as an engineering business under a new organization to be launched within the Commercial Aviation & Transportation Systems business domain. Of the two new companies, the ship construction entity will be launched as a company succeeding the MHI Ship & Ocean Engineering, focussing on sales, engineering, procurement, manufacture, construction and repair services. New ship construction operations will focus on LNG (liquefied natural gas) and LPG (liquefied petroleum gas) carriers, vessels that MHI expects to be in strong demand beyond the near term. The hull block manufacturing company will initially get under way in the form of a preparatory company, followed by an absorption-type split. The new entity will specialize in large-scale hull blocks, and will pursue enhanced productivity primarily by continuous construction of such Bank of China, China Shipping pen USD 14.4 Bln Deal Source: World Maritime News 6th February 2015 Bank of China and China Shipping Group signed a global strategic cooperation agreement in Beijing worth USD 14.4 billion. The agreement provides for cooperation in the areas of credit facilitates, cash management, direct financing, financial advisory, investment banking, 12 insurance, the Bank said. The agreement builds on yearlong cooperation between the two parties that has seen the Bank provide loans, credit lines as well as guarantee for the bonds issued by China Shipping. The deal comes as China endeavours to boost its shipbuilding and shipping capacities so as to become more competitive on global scale. Bank of China is the seventh largest bank in the world in the area of ship financing. Asia Trade Growth threatened by Poor Port Infrastructure Source: South China Morning Post 12th February 2015 Insufficient port capacity and productivity are looming large as restraints on trade growth, with Asia likely to suffer the most if delays in upgrading infrastructure threaten the sustainability of thriving intra-regional trade. For many working in the logistics industry, last year will be remembered as one of gridlock on the docks, with a number of ports around the world, including Hong Kong, Shanghai, Qingdao, Manila, Rotterdam and those on the US west coast, suffering from congestion. Tim Wickmann, the chief executive of MCC Transport, the intra-Asia container shipping arm of AP Moller-Maersk Group, was among those who dealt with delayed shipments on a daily basis. "In my 25 years' experience in shipping, 2014 was the worst I've seen in terminal congestion in Asia," he said. "Congestion in Manila and Hong Kong was a huge problem for us." Wickmann estimated trade growth would create three million extra handling moves for Asian terminals. "However, we have a situation where many ports in Asia are close to their maximum capacity and are not developing fast enough to cater for this growth," he said. "Inadequate port capacity and related infrastructure is the single biggest challenge to intra-Asia trade growth." Egypt inks LNG Supply Deal with Trafigura Source: World Maritime News 9th February 2015 The Egyptian Gas Holding Company (EGAS) and commodity trader Trafigura signed a contract on supply of about 33 shipments of liquefied natural gas (LNG), Egypt's Ministry of Petroleum informed. The contract has been signed within Egypt's USD 2.2 billion tender for delivery of 75 cargoes of LNG as the country endeavors to meet its energy requirements for the period 2015 – 2016. Four international companies have been selected winners of the tender. Egypt revealed plans to conclude an agreement with Russia's Gazprom for the company to supply it with LNG shipments. The two parties signed an agreement in principle in April on the supply of seven LNG shipments. Egypt has already signed a deal with Algeria in December for delivery of six LNG cargoes. Dorian expects Strong LPG Demand to Continue ONGC Awards Swiber Major Contract to Build 8 New Offshore Gas Platforms Source: World Maritime News 9th February 2015 Source: G Captain 13th February 2015 NYSE-listed owner and operator of Very Large Gas Carriers (VLGC) Dorian LPG reported USD 16.4 million net income for the nine months ended December 31, 2014. The company's revenues for the nine-month period stand at USD 68.8 million, improved by a strong third quarter when Dorian accumulated USD 32.6 million in revenues, and almost USD 9 million net income. The third quarter revenues increased by USD 18.9 million, or 137%, compared to the same period in 2013. The increase is primarily attributed to the delivery and operation of two newbuilding VLGCs in 2014. Additionally, revenues for one of Dorian's VLGCs increased by USD 5.7 million due to a transition from time charter during the three months ended December 31, 2013 to the spot market in the current quarter. John Hadjipateras, Chairman, President and Chief Executive Officer, said: "We continued to execute on our strategic plan to build out our fleet in the third quarter with the delivery of the Corvette in early January of this year. Corvette is the third fuel efficient ECO-design VLGC to enter the Dorian fleet. We currently own and manage a modern fleet of six VLGCs and one pressurized LPG carrier with newbuilding contracts for the construction of 16 new fuel-efficient ECO-design VLGCs to be delivered in the next twelve months. I am pleased to report that we have now received debt financing commitments to complete the funding of our newbuilding program with no need to raise any additional debt or equity." Singapore based offshore energy construction contractor Swiber Holdings Ltd reported their second largest contract ever from India's Oil and Natural Gas Corporation Ltd. (ONGC). The $310 million contract involves the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) of 8 new platforms and associated pipelines. Although not specifically mentioned, it is very likely this contract is for the Damen Development Project in the Arabian Sea. In a conference call at the end of December, ONGC commented on the Damen Development noting it will, "drive our gas production up significantly by about 10 to 11 million cubic meters per day in the coming two-three years." The development includes seven well head platforms, one riser platform with associated pipelines and the drilling of 28 wells, according to ONGC. The development is scheduled to come on line pre-monsoon 2019. With this new contract, Swiber's order book has risen to a record high of approximately US$1.6 billion. Swiber President and CEO Francis Wong sees more opportunity for his company going forward noting, "As an established provider of EPCIC services for shallow water oil and gas field development, we believe that Swiber occupies a space in the offshore service value chain that will be less susceptible to spending cuts by the oil & gas companies. We continue to see opportunities in our field of expertise and are working on new project tenders in our target markets." 13 Maritime Security said China aims to dominate the Indian Ocean after Beijing deployed amphibious ship the CHANGBAISHAN and a nuclear submarine to the region. The country has attempted to establish itself as a maritime player in the Indian Ocean by increasing anti-piracy deployments, naval exercises and investments in maritime infrastructure projects. These activities raised concerns on whether Beijing will adopt more aggressive maritime strategies in the future. The PLA Navy's submarines docked at the port of Colombo in Sri Lanka twice last year and China is said to have established military facilities in the country. Beijing also holds a controlling stake in Hambantota port in the southeast of the country. With the shares, Chinese stateowned companies gained the operating rights of the port's four berths from Sri Lanka, which got an easing of loan conditions in exchange. Danish Gov't announces New Anti-Piracy Strategy Source: Xinhua 12th February 2015 The Danish government announced a new strategy for the fight to end piracy and armed robbery at sea. The strategy, which covers the period 2015 to 2018, sets the framework for Denmark's overall political, developmental, and military efforts against piracy. The overall objective of the strategy is to contribute to the jurisdiction of the waters where Denmark has significant maritime interests and ensure the security of Danish and international shipping and seafarers. "For a maritime nation like Denmark, it is vital that we do what we can to protect shipping and seafarers. It is about security, personal costs for involved sailors, and better conditions for sailing," Danish Foreign Minister Martin Lidegaard said in a statement. He added that the Danish push to combat piracy is still focused on the Horn of Africa in northeastern Africa, but with the new strategy, the government will now expand its efforts to the Gulf of Guinea in West Africa. Hi-Tech Radar to bolster East Coast Soon: Official Source: Indian Express 1st February 2015 A sophisticated radar station to monitor the movement of water vessels on the east coast will be set up soon as part of a comprehensive coastal surveillance network planned after the 26/11 Mumbai terror attack, a senior Coast Guard official said. Regional Commander, Coast Guard, North East, Inspector General V S R Murthy said some "technical bottlenecks" in setting up the radar station have been sorted out and it will be functional by April. "This radar station will be a part of the 46 across the Indian coastline and another 10 inland. This system should take care of the bigger vessels and their movements but the smaller watercraft, which are less than 20 meters in length, continue to pose a problem," Murthy said. HMCS Chicoutimi now in the Royal Canadian Navy's hands after Extended Docking Work Period Source: Ottawacitizen 1st February 2015 Babcock Canada Inc. announced the delivery of HMCS CHICOUTIMI back to the Royal Canadian Navy. That turnover took place on December 3rd, 2014, after the successful completion of the submarine's Extended Docking Work Period (EDWP). This milestone marks the first of the Victoria-Class submarines to undergo a deep maintenance period managed by Babcock Canada through the Victoria In-Service Support Contract (VISSC), and the first Canadian naval vessel to have an EDWP conducted by the RCN's industry partners. Originally awarded in 2008, VISSC is in excess of $1.5 Billion and is intended to run for a period of 15 years. Babcock is currently conducting an Extended Limited Maintenance Period (ELMP) on HMCS CORNER BROOK and is slated to begin the submarine's deep maintenance period later this year Mark Dixon, President of Babcock Canada commented: "We are delighted to have delivered HMCS CHICOUTIMI back to the Royal Canadian Navy following her EDWP. India considering adding Japanese Soryu Class Submarines to its Fleet Source: sputniknews 2nd February 2015 New Delhi is considering a project to build six Japanese Soryu-class diesel-electric submarines in an Indian shipyard, according to Indian media resources. "In keeping with their expanding strategic partnership, the Modi government has asked the Shinzo Abe administration whether it would be interested in the over Rs 50,000 crore [$8.1 billion] project to build six stealth submarines in India,". It should be noted that in 2007, India had launched Project 75I, which was aimed at replacing its aging fleet with new foreign vessels. After repeated delays, the plan eventually obtained its second wind under the new Prime Minister, Narendra Modi. It is expected, that the six diesel-electric submarines will be built in India, in compliance with the popular "Make in India" initiative. The Modi Cabinet, which plans to put the project out to tender, has reportedly forwarded a proposal to Japan to "consider the possibility" of building its Soryu-class submarines in India on condition that Japan "will form a joint venture PLA Navy aims to Control Indian Ocean: National Interest Source: WantChinaTimes 1st February 2015 The People's Liberation Army Navy is preparing for a permanent deployment to the Indian Ocean and plans to use dual-use ports as secret ammunition caches and to support military operations, according to a piece in Washington-based National Interest. The US magazine 14 rob and escape with a diesel-loaded ship worth RM900,000. The incident happened off Timur Tanjung Siang near Tanjung Penawar. MMEA operations director, Maritime First Admiral Ibrahim Mohamed said the pirates aged between 28 and 46 had used a longtail boat to take over the vessel which was anchored at Tanjung Ayam, off Pengerang. "The MMEA received a report of the missing vessel when it failed to be tracked."Based on the information, MMEA deployed two ships, two interceptor boats and a Special Operations Unit team to find the vessel, and it was located 15 nautical miles off Tanjung Siang," he told reporters. Ibrahim said seven of the pirates were arrested while two initially managed to escape by jumping off the ship. with an Indian shipyard," the Diplomat points out. Coast Guard has responded Maritime Challenges: Mukherjee successfully to Source: Business Standard 1st February 2015 President Pranab Mukherjee praised the Indian Coast Guard for responding to maritime challenges successfully, and hoped it would continue to pursue excellence and discharge its duties with alacrity, dedication and professionalism. Extending his greetings and felicitations to all ranks of the Indian Coast Guard and their families on the occasion of 38th Anniversary of the Indian Coast Guard to be celebrated on February 1, 2015, President Mukherjee said, "I extend my heartiest greetings to all ranks of the Indian Coast Guard and their families. Let the Indian Coast Guard achieve continued success in all its future endeavours." Court in Virginia hears Appeals from 2 Somali Pirates in Deaths of 4 Americans aboard Yacht Source: Associated Press 3rd February 2015 7 Bodies Recovered from Migrant Boat Capsize One Somali pirate convicted of killing four Americans aboard a yacht claims he was abducted and coerced into joining the mission. Another says the United States illegally reached into Somalia's territorial waters to arrest him. Lawyers for the two pirates argued those points to a seemingly skeptical three-judge panel of the 4th U.S. Circuit Court of Appeals, which is expected to rule in several weeks. Abukar Osman Beyle and Shani Nurani Shiekh Abrar were each convicted of 26 charges and sentenced to 21 life terms for their roles in the February 2011 attack off the coast of Africa. They were among 19 men who boarded the 58-foot yacht in hopes of taking the Americans back to Somalia and holding them for millions of dollars in ransom. Source: Dhaka Tribune 2nd February 2015 Seven bodies were recovered from the hull of the trawler which capsized in the Bay of Bengal with about 80 Malaysia-bound illegal passengers; around 30 more, however, remain missing. After conducting a search inside the boat, the bodies were found at the bottom layer of the 30-feet-long wooden fishing trawler said Bangladesh Coast Guard (East) Public Relation Officer Lt Commander M Rajibul Islam. DG Indian Coast Guard - Vice Admiral HCS BISHT, AVSM Australia gives Philippines Two Naval Landing Craft Source: The Echo of India 2nd February 2015 Source: Defense News 3rd February 2015 On the 39th Raising day of the Indian Coast Guard on 01 Feb 15, Vice Admiral HCS Bisht, AVSM took over the helms of the service as the 21st Director General Indian Coast Guard. He succeeded Vice Admiral Anurag G Thapliyal AVSM & Bar, who superannuated on 31 Jan 15. An alumnus of the National Defence Academy Khadakvasla, Pune and the Naval Academy Kochi, the Admiral was commissioned in the Executive Branch of the Indian Navy on 01 Jul 1979 and is a Gunnery Specialist. The Admiral has held numerous important afloat, training and staff appointments which includes commissioning Commanding Officer of the Missile Corvette INS KORA, Commanding Officer of the Stealth Frigate, INS TABAR and DA at the High Commission of India, Singapore. Australia announced that it is donating two decommissioned military landing craft to the Philippines after the archipelago struggled with relief efforts following Super Typhoon Haiyan. The vessels, which were decommissioned in November, will be refurbished with modern safety and navigation equipment before being handed over. "I expect the vessels will be refitted and ready for handover in May 2015," Australian Defence Minister Kevin Andrews said in a statement released by his country's embassy. The two 44.5-meter-long (146-foot) craft, which are designed to carry heavy supplies, will be given to the Philippine Navy to help with humanitarian assistance and relief work. The Philippines struggled because of a shortage of such vessels during relief operations after Haiyan, the strongest storm ever recorded on land, which decimated whole towns and villages in November 2013. The Australian military, including the amphibious vessel HMAS TOBRUK, were dispatched to help victims of the storm, which left more than 7,350 people dead or missing. The Philippine military is also considering whether to purchase three other surplus MMEA Prevents Pirates' Diesel Ship Heist Attempt Source: malaysiandigest 2nd February 2015 The Malaysian Maritime Enforcement Agency (MMEA) prevented an attempt by a group of nine armed pirates to 15 Australian landing craft that were decommissioned in 2012, the embassy added. was then left behind. The crew was found and rescued with no reported injuries on January 31 by Indonesian authorities. Some media reported that 10 more crewmen are still on the hijacked tanker. The Indonesian media also cannot seem to agree on the exact name of the vessel, with two other versions to MT REHOBOT being MT BERKAT REHOBOT and MT REHOBOOTH. No ransom requests have been reported so far. Indonesian Navy and police are still searching for the tanker. According to the local media, the tanker is currently in Philippine waters. Iran Navy in North Indian Ocean vies with Powerful Counterparts Source: Trend 3rd February 2015 Iran's Navy Commander Rear Admiral Habibollah Sayyari said that Iran's navy equipments in North Indian Ocean and the Gulf of Aden compete with powerful navies of other countries, the Islamic Republic's official IRNA news agency reported Feb. 2. "Powerful navies of other countries present in the North Indian Ocean and the Gulf of Aden have accepted Iran as a powerful navy in the region," Sayyari said in a meeting with armed forces and navy industries officials in Tehran. Referring to the Iranian Navy as a strategic force, Sayyari said presence in international waters is important for the country. "Iran aims at having a constant presence in open seas," he underlined. The commander referred to a powerful naval fleet, an active commercial shipping line and powerful navy industries as three sides of the triangle of the naval authority. TKMS offers Type 209 and Type 210 Submarines to Royal Thai Navy Source: Janes 4th February 2015 Germany's ThyssenKrupp Marine Systems (TKMS) has made a double submarine offer to Thailand featuring the company's Type 209/1400mod and Type 210mod platforms, IHS Jane's understands. The company highlighted the capabilities of the two submarines in meetings in Bangkok recently as part of the Royal Thai Navy's (RTN's) continuing review of submarine platforms, said sources. This evaluation programme - which has also featured Russia's Kilo-class Project 636 submarine and China's Yuan-class (Type 041) platform - is in support of the RTN's plan to procure up to three submarines within the next few years. South Korea's Daewoo Shipbuilding & Marine Engineering's Chang Bogo-class (Type 209) submarine is also expected to be evaluated by the RTN. PLA Navy may establish Fourth Fleet for Indian Ocean Source: WantChinaTimes 3rd February 2015 To extend its reach to the Indian Ocean, China's PLA Navy may establish a fourth fleet after the North Sea, East Sea and South Sea fleets, according to Duowei News, an outlet operated by overseas Chinese. Senior Colonel Yang Yujun, spokesperson for the Chinese defense ministry, said on Jan. 29 that the PLA Navy is ready to increase its activity in the Indian Ocean. In the future, the Chinese military will send different kinds of naval ships to take part in escort missions in accordance with the situation and need, Yang was quoted as saying by the UK-based IHS Jane's Defence Weekly. Responding to concerns about the movements of Chinese submarines in the Indian Ocean, Yang said these are only "normal activities" of the PLA Navy and that not too much should be read into them. The Chinese military has sent various kinds of naval ships to the Gulf of Aden and the waters off the Somali coast to conduct escort missions since 2008, Yang said, adding that countries concerned had been notified of the PLA escort missions, which have included submarines. New Nigerian Navy Warship Departs South Africa on Way Home Source: defenceweb 4th February 2015 One of the Nigerian Navy's two new P-18N offshore patrol vessels has departed South Africa on its way home as it sails from its shipyard in China. The ship was seen leaving False Bay on 30 January, after having arrived in Simon's Town on January 28. The vessel, with pennant number F91, was handed over to the Nigerian Navy in China at the end of November last year. The first P-18N was launched by the China Shipbuilding and Offshore International Company on 27 January 2014 at Wuchang Shipyard in Wuhan, China. The vessel was assigned the pennant number F91 (the pennant number F90 is assigned to the NNS THUNDER, an ex-US Coast Guard cutter). The offshore patrol vessel's launched ceremony also marked the hull formation ceremony of the second vessel, F92. Pirates Hijack Tanker off Indonesia Lockheed Martin to Look For Indian Partnerships during Aero India 2015 Source: world Maritime News 3rd February 2015 Source: Defence World 4th February 2015 An Indonesian-flagged tanker carrying around 1,100 tonnes of fuel was hijacked and its crew forced to board a lifeboat off North Sulawesi, Indonesia on January 28, according to the local media. According to initial reports, eight masked men armed with knives approached and boarded the MT REHOBOT on a wooden boat, forcing 14 of the ship's crew members to climb into the lifeboat which Lockheed Martin has expressed that it is on a lookout for more opportunities with key industries in India. Lockheed Martin will focus on AGM-114R multipurpose HELLFIRE II, DAGR missile systems, K-MAX, E2D Hawkeye and Javelin during the upcoming Aero-India 16 show. Lockheed Martin will showcase solutions from different business areas for several current and potential projects with the Indian services, the statement said. Lockheed Martin already has a joint venture with Tata Advanced Systems and will be looking at delivering $1 billion worth six C-130Js by India ordered recently. Plans to acquire six more of these highly advanced aircraft are in the pipeline. The deal is mainly export-oriented. Lockheed Martin will also focus on the MH-60R/S (Romeo and Sierra) maritime helicopters. The company hopes to offer these as solutions for the Indian Navy's multi-requirement NMRH program. Other products on display will include the K-MAX, E2D Hawkeye and Javelin. The company is also in the race for a $11-billion contract for 126 fighter jets for India. deterred by the navy warships. In an another attempt, four pirate boats preyed on an Iranian oil tanker approximately 75 nautical miles off Yemen's coastal city of Mukalla. Nevertheless, their attack was foiled as well. The 33rd fleet, SHAHID QANDI destroyer, BANDAR ABBAS logisticcombat warship and TAREQ submarine, has just began its patrolling of the Indian Ocean having taken over the duty from the Navy's 32nd flotilla. The 32nd flotilla, consisting of JAMARAN and BUSHEHR destroyers, returned to Iran after 80 days of missions in the Sea of Oman, North of the Indian Ocean, the Gulf of Aden, Bab al-Mandab Strait and the Red Sea, the news agency reported. Earlier in January the 32nd fleet managed to repel a group of eight pirate skiffs that were approaching an Iranian product tanker in the Gulf of Aden. Iranian warships joined anti-piracy efforts in the Gulf of Aden in 2008 and have since foiled over 150 pirate attacks on merchant vessels and oil tankers, according to the navy's data. 'Navy keen to set up Training Base in State' Source: NYOOZ 5th February 2015 ReCAAP: Piracy Incidents in Asia at Five-Year High Indian Navy's Chief of Staff for Southern Naval Command Rear Admiral Atul Kumar Jain told Chief Minister Raman Singh that the Navy is keen on establishing a training base at Dhamtari-based Pandit Ravishankar Irrigation Reservoir (Gangrel Irrigation Reservoir) in Chhattisgarh. Singh accepted the proposal while stating that the Chhattisgarh Government will provide full co-operation for setting up of the training base. The Chief Minister urged the senior naval officer who called on him at his residential office in Raipur to conduct rallies for recruitment of State's youth in the Indian Navy. The district administration will make arrangements for the special recruitment rallies, he said. Source: World Maritime News 5th February 2015 The number of piracy incidents reported in 2014 in Asia, a total of 183, is the highest recorded figure in the five-year reporting period (2010-2014), piracy watchdog ReCAAP said in its latest annual report. The figure represents a 22% increase compared to 2013, when 150 incidents were reported. Out of 183 reported incidents, 168 were actual incidents and 15 were attempted attacks. Of the actual incidents in 2014, 102 incidents (61%) occurred onboard ships at anchor and at berth. These incidents occurred at ports and anchorages in Indonesia (39), SCS (23), Bangladesh (14), India (11), Vietnam (6), Philippines (5) and Malaysia (4). The number of incidents reported in the South Asian region in 2014 has increased compared to 2013 figures, mostly due to a rise in piracy activity in Bangladesh. Greek Officer Killed, Three Others Kidnapped from VLCC off Nigeria Source: G Captain 5th February 2015 One officer is dead and three others have been kidnapped following an attack on a Greek-owned VLCC anchored off the coast of Nigeria. In an emailed statement, Aeolos Management, managers of the KALAMOS Shipping Corporation-owned MT KALAMOS, has confirmed that the vessel was attacked by a criminal gang at 2200 hrs on February 3 while waiting to complete loading at a designated anchorage at Qua Iboe, Nigeria, inside territorial waters. During the attack, one officer sustained gunshot wounds and later passed away while being transferred to a nearby a hospital, the statement said. Two other officers and an AB were taken by the gang and remain unaccounted for, according to the company. Philippines says Chinese Ship rammed Fishing Boats in Scarborough Shoal Source: Reuters 6th February 2015 The Philippines said that a Chinese coast guard ship had rammed three Philippine fishing boats in the disputed Scarborough Shoal area of the South China Sea and Manila had protested to Beijing over the incident. China seized control of the area after a three-month stand-off with the Philippine coast guard in 2012. Beijing lays claim the entire South China Sea, which is believed to be rich in oil and natural gas deposits. Brunei, Malaysia, the Philippines, Vietnam and Taiwan also claim areas of the sea where about $5 trillion ship-borne trade passes every year. All states except Brunei have a military presence in the disputed areas."The Philippines strongly protested China's continuing actions to harass and prevent Filipino fishermen from legitimately pursuing their livelihood in that area," the foreign ministry said in a statement on Wednesday. The Manila government handed over two Iranian Navy Foils Two Pirate Attacks Source: World Maritime News 4th February 2015 The 33rd flotilla of the Iranian Navy fended off pirate attacks on two Iranian oil tankers in the past week, the FARS news agency reports. Armed pirates in five speed boats attempted to hijack an oil tanker in the waters of the Gulf of Aden three days ago, however; their attack was 17 protest notes to the Chinese Embassy in Manila, foreign ministry spokesman Charles Jose said. Calls to the Chinese Embassy seeking comment on the protests went unanswered. Monday, which lightened it enough for it to break free from the reef during a high-tide cycle, the Navy said in a news release. After the operation, the ship was able to transit under its own power to Naval Fleet Activities White Beach in Okinawa, the Navy said. "Safely refloating the vessel required the right sea state, the right tide and the right weather conditions to lessen any risks to personnel, the ship and the environment," the release said. Japan and Navy officials are now assessing the potential damage to the reef. The cause of the incident remains under investigation. China Defends Ship's Actions against Philippines in South China Sea Source: Reuters 7th February 2015 China defended the actions of a coast guard vessel in the disputed South China Sea after the Philippines accused it of ramming three fishing boats and urged Manila to increase "indoctrination" of its fishermen. The Philippines said that a Chinese coast guard ship had rammed three Philippine fishing boats in the disputed Scarborough Shoal area last week and Manila had protested to Beijing over the incident. The news drew a stern rebuke from China's Foreign Ministry, which said that many fishing vessels from the Philippines were "illegally lingering" in the waters surrounding the Scarborough Shoal and did not abide by China's management. "China's coast guard sent a dinghy to drive them away and slightly bumped one of the fishing vessels," Chinese Foreign Ministry spokesman Hong Lei said at a daily news briefing. "We ask that the Philippines strengthen education and indoctrination of its fishermen to prevent such incidents from happening again. "China seized control of the area after a three-month stand-off with the Philippine coast guard in 2012. Navy Vice Chief Reviews Underwater Weapons Projects Taken Up by NSTL Source: The New Indian Express 6th February 2015 US tarries on Aircraft Carrier Tech VISAKHAPATNAM: Vice Chief of Naval Staff Vice Admiral Sunil Lanba reviewed the status of underwater weapons projects currently under development at the Naval Science and Technological Laboratory (NSTL) in Visakhapatnam. He chaired the 28th steering committee meeting on Underwater Weapons and reviewed the progress of various projects being taken up by the NSTL related to the weapons. DRDO director-general V Bhujanga Rao, Vice Admiral AK Chawla, NSTL director CD Malleswar, senior officers from the Navy, project directors and senior scientists of the NSTL participated in the meeting. Sources said that issues pertaining to stealth technologies which are proposed to be incorporated in all the Indian Navy vessels were discussed during the meeting. Source: The Telegraph 5th February 2015 India's Most-Advanced Warship to get the Missiles that were missing NEW DELHI: The Indian Navy wanted to share the latest technology that the US is developing for its next generation of aircraft carriers, but the Pentagon has quietly put the request on hold till crucial agreements are signed. Officials from India and the US are expected to meet again in New Delhi with US undersecretary for technology, acquisitions and logistics, Frank Kendall, scheduled to arrive by the end of this month. Kendall led the US delegation in talks with India's defence production secretary in the week leading to President Barack Obama's visit last week. A joint statement from President Obama and Prime Minister Narendra Modi last week noted that India and the US will form a "working group to explore aircraft carrier technology sharing and design", as a part of the Defence Trade and Technology Initiative (DTTI). Source: NDTV 6th February 2015 NEW DELHI: When the Indian Navy commissioned its most-advanced warship eight months ago, the INS KOLKATA was missing its primary weapon system - the Barak 8 long range surface-to-air missiles, 32 of which were meant to be carried onboard in ready-to-fire mode. NDTV has learned that the Barak 8 missile has cleared all its tests and is ready for induction. The missile, designed to intercept incoming anti-ship missiles at a range of at least 70 kilometres, has been made in partnership with Israel, where it has successfully completed trials, and will be refitted on the INS KOLKATA in either April or May, said sources. The missile will simultaneously be fitted on board the INS KOCHI, the sister ship of the INS KOLKATA, which will soon be commissioned and subsequently, on the last ship of the class, the INS CHENNAI. Grounded Navy Ship freed from Reef off Okinawa Source: Stars & Stripes 6th February 2015 U.S. Coast Guardsman shoots Two Colleagues, Police Officer A Military Sealift Command ship is again transiting the seas after the U.S. Navy was able to remove the vessel from a reef six miles off the coast of Okinawa. The USNS SGT. MATEJ KOCAK was carrying 131 civilians and U.S. servicemembers when it ran aground on Jan. 22. For the past two weeks, personnel have been trying various ways to refloat the vessel. Workers offloaded the ship's fuel on Source: g Captain 6th February 2015 An active duty Coast Guardsman is in custody after allegedly shooting two female colleagues and attacking officers at a condominium complex in Cape Cod, resulting 18 in the death of one of the women. The shooting incident began early morning in Bourne, Massachusetts. According media reports, the alleged shooter, 31-year-old Adrian Loya, an active duty member of the U.S. Coast Guard, surrendered to police just after a standoff. Police recovered three rifles and a handgun, reports say. The two women who were shot were also in the Coast Guard and stationed on Cape Cod, while the suspect was stationed in Virginia, reports say. Advanced System Laboratory (ASL), had filed a complaint with the Prime Minister's Office (PMO) against Chander citing various irregularities in the Defence Research and Development Organisation (DRDO). Besides, two more complaints against Chander were also lodged with the PMO with copies sent to National Security Advisor (NSA). In its reply sought under RTI by former DRDO employee and activist Prabhu Dandriyal, the PMO stated that while the complaint lodged by Gupta is being looked into, two others have been sent to Cabinet Secretary for action. Chinese Fishing Vessel Hijacked; One Feared Dead PSU Plant for Missiles in Maharashtra Source: citifmonline 7th February 2015 Source: The Asian Age 7th February 2015 One person is feared dead and three persons missing after a Chinese fishing vessel was hijacked by pirates in Togolese waters. The pirates reportedly stabbed one of the men on the vessel which led to his death. The vessel, LU RONG YUAN YU 917 had 22 Ghanaians and six Chinese crew on board. According to the Commanding Officer of the Ghana Navy Ships, Lt. Commander Victor Fianko, the Ghana Navy is collaborating with their Togolese counterparts to search for the three missing crew members. In an interview with Citi News, Lt. Commander Fianko narrated that his outfit received information that the hijacked vessel had been abandoned and it was heading towards Ghanaian waters. The Navy then sent a dispatch to the eastern boarder of Ghana where the vessel was intercepted. Maharashtra is set to get a share from the "Make in India" pie as Bharat Dynamics Limited (BDL) has conveyed to the state government that it will be investing up to Rs 1,000 crore for setting up a manufacturing plant of shortrange missiles in Amravati. The defence sector public undertaking is expected to start setting up the facility by the end of this year, highly-placed sources in the government confirmed. The state government had allocated 200 hectares (500 acres) of land in Nandgaon Peth in Amravati to the PSU in 2011 for setting up a manufacturing unit of short-range defence missiles. However, the project was shelved for technical reasons. "With the change in government and change in defence policy, Bharat Dynamics Limited has once again decided to revive its plans for building up the facility in Maharashtra," a senior officer said, requesting anonymity. Sources confirmed that this would be the first project coming up in the state as part of Prime Minister Narendra Modi's "Make in India" campaign. Navy stops Tuo Jiang-Class Trials Source: taipeitimes 7th February 2015 The Republic of China (ROC) Navy has put a stop to trial runs of the new missile-carrying Tuo Jiang-class 618 stealth corvette due to serious design flaws that have undermined the vessel's operations, senior navy commander Lu Li-shih told the Liberty Times. Lu said that several fundamentals flaws in the corvette's design, along with it being packed with extra weapons and equipment systems, resulted in the vessel having insufficient buoyancy, which affected its maneuverability and stability. Lu is a former captain of a Jin Jiang-class patrol vessel, which are similar to the 618. "The core design concept was to build a stealth fast-attack corvette with high maneuverability," Lu said. Manila says China starts Dredging at another Reef in Disputed Waters Source: voanews 8th February 2015 China has started dredging around the disputed Mischief Reef in the South China Sea, a Philippine navy commander said, signalling Beijing may be preparing to expand its facilities in the area. Last year, Chinese President Xi Jinping tried to set Southeast Asian minds at ease over the country's regional ambitions, but Beijing's reclamation work in the Spratlys underscore its drive to push claims in the South China Sea and reassert its rights. China has already undertaken reclamation work on six other reefs it occupies in the Spratlys, expanding land mass five-fold, aerial surveillance photos show. Sacking Shame in DRDO Post-Favour Complaints Source: The New Indian Express 7th February 2015 Nigerian Coast Now Deadliest on Earth BALASORE: With Defence Minister Manohar Parrikar intervening in controversial removal of Project Director of Agni-V Rajesh Kumar Gupta, questions have been raised over role and function of former DRDO chief Avinash Chander whose service contract was abruptly terminated earlier. It is suspected that Chander might have been sacked on the basis of a complaint lodged by Gupta, highlighting Chander's irregularities. Reliable sources said Gupta, who is also Associate Director of Hyderabad-based Source: thisdaylive 8th February 2015 A pirate attack that killed a supertanker crewman off the coast of Nigeria has highlighted a growing threat off oilrich West Africa, as vessels carrying millions of barrels of crude traverse a region that has become known as "pirate 19 alley". The 2 million barrel KALAMOS Very Large Crude Carrier (VLCC) was heading to Nigeria's main oil terminal when it was attacked, leaving the ship's Greek deputy captain dead and three crew members taken hostage. Security experts say the waters off Nigeria are now the deadliest on earth, surpassing Somalia on Africa's east coast, which gained notoriety due to months-long hijackings, high-cost ransoms, and U.S.-led rescue missions such as the one that inspired Hollywood movie "Captain Phillips"."It's referred to as pirate alley – kidnap alley," said Ken Johnson, regional analyst with Dryad Maritime, referring to the stretch of West African coast from the Gulf of Guinea off Nigeria to as far south as Angola's capital Luanda. Johnson, who provides operations and intelligence advice to the shipping industry, said there was another deadly attack on a ship in the region last month when pirates killed a Nigerian naval seaman aboard the oil support vessel, MV JASCON. Another attack last year on an oil products tanker, the SP BRUSSELS, killed one crew member, Johnson said. several big-ticket items, including two frigates that used to be U.S. Coast Guard cutters. The nearly 50-year-old ships, retrofitted with modern munitions and companion helicopters, have been patrolling the archipelago's shores for the past two years. Four more frigates are on order and another two navy helicopters identical to the three already in use are expected to arrive by May. The Philippines' annual military spending is $2.6 billion, miniscule compared to China's $132 billion military budget in 2014. But Manila has focused its resources on improving its capability to monitor and respond to developments in the South China Sea. Russia Sends Nuclear Submarine Troops on Arctic Exercise Source: Newsweek 9th February 2015 Nuclear units in the Russian navy have engaged in exercises in the international waters underneath the North Pole, a move which analysts believe is a thinly veiled response to the news that NATO is to reinforce its eastern European border with Russia."In particular we focused on hazard and threat detection, but also on missile launching and navigation manoeuvres, ice reconnaissance, submerging and emerging from ice, using torpedoes to undermine ice and many other issues," North Fleet captain Vadim Serga said. Among the units which took part in the exercises were the crews of several Borei-class ballistic missile nuclear submarines, an upgrade of Russia's old Delta 3, Delta 4 and Typhoon nuclear vessels. The Russian captain also added that the Fleet's crew were given theoretical as well as practical exercises, which were led by vice admiral Anatoly Shevchenko, whose nuclear submarine has ventured underneath the North Pole ice several times before. Japan Fears $25bn Submarine deal at Risk in Tony Abbott Crisis Source: The Australian 8th February 2015 Japanese officials have met to discuss whether Tony Abbott's leadership crisis could threaten a potential $25 billion deal to sell submarines to Australia. In a sign that the leadership instability is having an international impact, members of Japan's National Security Council met with their Foreign Ministry counterparts in Tokyo. They discussed both the leadership crisis and the submarine project. There is concern in Tokyo that if Mr Abbott is deposed as Prime Minister, the Coalition's enthusiasm to buy submarines from Japan will wane, reviving the hopes of Germany, France and Sweden, which want an open competition for the project. Mr Abbott and Japan's Prime Minister Shinzo Abe have personally been the driving forces behind the notion of buying submarines from Japan and the offices of both leaders have pushed the concept on to their respective defence bureaucracies. If Mr Abbott were removed, the political impetus to strike a deal with Japan would also be lost. Has Somali Piracy ended? Source: defenceweb 9th February 2015 The sharp drop in piracy in the Somali Basin is puzzling security experts, who have been surprised by recent developments. While they are not heralding "mission accomplished," they are asking what factors have led to the recent sharp demise in piracy off the Somali coast. The High Risk Area off the Somali coast has seen over 700 attacks by pirates since 2009, but last year there were only 11 pirate incidents and no ship hijackings. No ships have been hijacked in the area since the start of January 2013. Toward the end of 2011, seven ships were being hijacked a month. Security experts can point to no one reason for the quiet in the Somali Basin, but suggest several factors have combined to reduce the threat over the past year. Among these are the presence of three international naval task forces in the area, the extensive use by ship owners of armed private security guards, and improved best security practices for sailing through high risk waters off east Africa. With the reduced threat of piracy in the Somali Basin, ships owners are increasingly turning attention to piracy the Gulf of Guinea. However, the most severe area for piracy is in At China Sea Impasse, Manila Bolsters Navy Source: Voice of America 8th February 2015 The Philippine Navy is upgrading its capabilities at a time of continuing tensions with China over disputed territory in the South China Sea. In recent weeks, an Indonesian naval shipbuilder started work on two "strategic sealift vessels" that the Philippines is acquiring for more than $87 million and expects within two years, said Commander Lued Lincunad, a navy spokesman. Each one "will enhance our defense capability and operational capabilities. It has a helipad and can accommodate three choppers at any one time," Lincunad said. As part of a five-year, $1.8 billion military modernization program, the navy already has acquired 20 the South China Sea. security agencies to work in tandem with scientific research and development organisations in order to guard the seas and the vital assets dotting the country's coastline. North Korea Tests New Anti-Ship Missile HSL to build Two Midget Submarines Source: G Captain 8th February 2015 Source: The Hindu 9th February 2015 North Korea has test-fired a new anti-ship cruise missile, images released by state media showed, demonstrating the increased capability of the secretive state's outdated navy. The images were released in the lead-up to U.S.-South Korean military exercises this spring. North Korea routinely seeks to raise tensions ahead of the annual drills, although this year Pyongyang has also offered to suspend nuclear testing if Washington calls off the exercises. The missile appeared identical in design to a Russian anti-ship missile, the KH-35, which is capable of flying at high speeds meters above the sea. Underwater capability of Indian Navy will get a shot in the arm with the in-principle decision of Ministry of Defence to place construction of two Strategic Operating Vessels (SOVs) on Hindustan Shipyard Limited. The Request for Proposal (RfP) will be notified in a couple of months. Building two SOVs, also known as midget submarines each costing an estimated amount of Rs.3,000 crore will be a prestigious project. "We are expecting to ground work on the project by completing all the procedures by the year-end and deliver it in three years," HSL Chairman and Managing Director Rear Admiral N.K. Mishra told The Hindu on Sunday, declining to elaborate further. Mauritian Warship Leaves Indian Shores Source: The Times of India 9th February 2015 27 Indian Fishermen Held for Illegal Entry KOLKATA: The Coast Guard Ship BARRACUDA, the first ever naval ship to be built by India for a foreign nation, set sail for Mauritius from the Garden Reach Shipbuilders and Engineers (GRSE) Ltd in Kolkata. The ship was designed in India as per requirements from the Government of Mauritius. It was formally handed over to the Mauritian government in December. "The BARRACUDA is an Offshore Patrol Vessel (OPV) of unique design and has wide-ranging capabilities. It is designed to safeguard the safety and security of the Exclusive Economic Zone (EEZ) of Mauritius. "The ship can carry out anti-piracy and search and rescue operations, anti-smuggling and anti-drug surveillance, anti-poaching operations in the EEZ of Mauritius including fisheries protection. According to Verma, export of the warship is not only a significant milestone in Indo-Mauritian co-operation but has added yet another feather in the cap of the company that delivered India's first indigenously built warship INS Ajay to the Navy in 1961. Source: Dhaka Tribune 9th February 2015 Bangladesh Navy officials have detained 27 Indian fishermen on charges of fishing in the Bay of Bengal by illegally entering Bangladesh's maritime boundary. They were held at Fairway Baya area in the Bay of Bengal on Saturday afternoon. Two fishing trawlers were also seized. Navy sources said the detainees unlawfully entered Bangladeshi waters and were fishing in an area located some 80 nautical miles from Mongla port when the Navy held them. The fishermen hailed from India's South 24 Parganas. A case was filed against them and they were handed over to Mongla police. On February 4, the Navy detained 34 Indian fishermen and seized three trawlers from the same area. Govt Sinks another Foreign Illegal Ship in Batam. Source: antaranews 12th February2015 ' Maritime Security should be Part of Curriculum' Source: The Hindu 10th February 2015 The Ministry of Marine Affairs and Fisheries along with the Navy sunk a Thailand-flagged illegal fishing vessel that was caught in the Natuna Sea, Riau province, last October 30. "The sinking of the ship proves that we are serious about eradicating illegal fishing practices in our seas. This is also an effort to protect our country's sovereignty," Minister of Marine Affairs and Fisheries Susi Pudjiastuti said after witnessing the sinking. The ship, KM LAUT NATUNA 28 that weighed 80 Gross Ton was drowned in the Dempo Strait, 60 nautical miles from Batam Island. Three Indonesian Navy ships and three observatory ships of the Ministry of Marine Affairs and Fisheries were involved in the operation. A local authority who helped intercept the illegal ship in the Natuna sea last October 30 stated the captain and 11 crew members on board (all Thai nationals) were catching fish when they were caught. Earlier, Foreign Minister Retno Marsudi had noted the The security of the seas surrounding India has financial, diplomatic and geopolitical ramifications. Hence the need to incorporate coastal and seaward security subjects in school and college curriculums, Commodore G. Prakash, director of the Maritime Warfare Centre at the Southern Naval Command, has said. "Citizens must be made aware of the significance of maritime security and its link to the growth of the country and its ties with nations across the seas," he said while speaking on 'ocean and national security' at the World Ocean Science Congress, jointly organised by Kerala University of Fisheries and Ocean Studies (KUFOS) and the Swadeshi Science Movement, on Saturday. S. Anantha Narayanan, director of the Naval Physical and Oceanographic Laboratory (NPOL) who chaired the session, pointed out the need for maritime 21 move to sink foreign vessels was neither illegal nor barbaric. The move was expected to act a deterrent against illegal fishing and would stop poachers from entering Indonesian waters. It would also assure Indonesia's maritime economic sovereignty, he had stressed. the GoA area," Skuld noted. There is therefore the risk of offending the laws of littoral states which could see vessels, crews and PMSC personnel detained and subjected to prosecution, the P&I club added. Lower oil prices were unlikely to deter armed gangs from continuing to plunder small product tankers in the region this year, Skuld predicted. Indian Navy Issues RFI for New Missile Corvettes Source: Defence World 10th February 2015 Nigeria: 'Coastal Insecurity threatens 98 Percent of Nigeria's Trade' The Indian Navy has issued a Request for Information for six new Indian-built missile corvettes primarily as surface warfare vessels. Under the Next Generation Missile Vessel (NGMV) programme, the navy requires "Surface warfare capabilities, low RADAR, acoustic, magnetic and IR signature, high endurance and credible AMD/AA capability". The navy's RFI leaves out specifics of displacement. However, it appears that it could be looking for 2,000-2,500 ton vessel class – smaller than the brand new Kamorta-class ASW corvettes that began inductions last year, but significantly larger than the Indian-built Kora and Khukri class of surface warfare corvettes. Source: Allafrica 13th February 2015 98 per cent of Nigeria's bulk trade is currently being threatened by the increasing insecurity in its coastal region which is gradually extending to the greater part of the Gulf of Guinea, Commandant, Armed Forces Command and Staff College (AFCSC) Jaji, Kaduna, AVM John Chris Ifemeje, has said. AVM Ifemeje said bulk of the country's trade is done through its maritime environment which has continued to attract some security challenges with attendant legal implications. Speaking at a seminar for Senior Course 37 of the Department of Maritime Warfare tagged 'The Law of the Sea' in Jaji, the commandant highlighted crude oil theft, pipeline vandalism and operation of oil refineries as some major challenges being faced which extend to the greater Gulf of Guinea (GOG). "These economic activities which extend to the greater Gulf of Guinea (GOG) have continued to attract some security challenges with attendant legal implications in recent times. Navy Vessel MHADEI clocks one Lakh Nautical Miles Source: The Times of India 11th February 2015 NEW DELHI: The iconic INSV MHADEI has now clocked one lakh nautical miles while traversing the oceans around the globe, a milestone for the sailing vessel which figured in the naval tableau during the Republic Day parade last month. The tableau titled 'Bharatiya Nau Sena Aur Nari Shakti' depicted the sterling achievement of four Navy women officers who had braved the vagaries of the seas to participate in the voyage from Goa to Rio de Janeiro in Brazil on board MHADEI. The 23-tonne MHADEI, which has crossed the equator 10 times, the prime meridian four times and the international dateline twice, has notched several awards since it was inducted into the Navy. Officers who have sailed on it have received a Kirti Chakra, a Shaurya Chakra, two Tenzing Norgay National Adventure Awards, a McGregor Award for Military Reconnaissance, two National Maritime Achievement Awards and two Chief of Naval Staff Commendations, among others. New Navy Ship named for BISMARCK Source: KFGO 13th February 2015 BISMARCK has a naval ship named in its honor. Former Attorney General Bob Wefald, who was behind the drive to get a Navy nuclear sub named for North Dakota says the decision, came as a complete surprise. In fact, he once asked if the Navy might consider naming a ship after the capitol city and was told that name belongs to the German Navy. Wefald says the joint high-speed USNS BISMARCK will be built next year. The double hulled ship will be Navy owned but is not a war ship and will be operated by civilians. It can transport 300 troops and military equipment and is equipped with a landing pad for helicopters and can travel at 35 knots over long distances. Do Not Use Security Guards in SE Asian Waters: Skuld Source: seashipnews 15th February 2015 With piracy and armed robbery on the increase in Southeast Asia, P&I Club Skuld has warned shipowners to be wary of taking on the services of private maritime security companies (PMSCs). While PMSC arrangements may be common for the Gulf of Aden and surrounding areas, owners were warned in an advisory to be very cautious about such arrangements in this region."The littoral states in this part of the world take matters of security very seriously and at present there are no arrangements or regulations in place that would allow armed PMCs to be on board vessels in the same way as in 21st Century is of the Seas: Navy Chief Source: Business Standard 12th February 2015 Terming the 21st century as the "Century of the Seas", Chief of Naval Staff Admiral R.K. Dhowan said the seas have gained new found importance "because of their linkages with the blue economy". Speaking at the Asian Security Conference on "Asian Security: Comprehending the Indian Approach" organised by the Institute for 22 Defence Studies and Analyses (IDSA), he said the economic centre of gravity was shifting to Asia. He said the region has evident maritime linkages and the interest of the Asian nations was linked to unhindered free flow of oil and trade to the region. He said Asian nations have vast maritime interests and the responsibility of protecting these assets falls on the maritime agencies, as well as the navies of the region. PLA could Refit Two Soviet era Kiev-class Aircraft Carriers Source: WantChinaTimes 15th February 2015 China's ability to modify its two decommissioned Soviet era Kiev-class aircraft carriers which now serve as hoteltheme parks in Tianjin and Shenzhen has been discussed in a recent article on Beijing-based website Sina Military Network. The Kiev and the Minsk were the first two vessels of four Kiev-class aircraft carriers built for the Soviet navy back in the 1970s. Also known as aviation cruisers, the 45,000-ton vessels can be equipped with 80 to 200 surface-to-air missiles, two dual-purpose guns, eight closein weapons systems and 10 torpedo tubes. The ships have a speed of 32 knots and are capable of carrying between 12 and 13 Yak-38 fighters with vertical take-off and landing capability. The ships can also carry 14 to 17 Ka-25 or Ka27/29 helicopters. U.S. Navy Considers Setting up Ship Base in Australia Source: Bloomberg 11th February 2015 The U.S. is in talks with Australia about "basing" Navy vessels in its main South Pacific ally, Chief of Naval Operations Admiral Jonathan Greenert said, a move that would risk inflaming tensions with China. "We're doing a study together with the Australia Defence Force to see what might be feasible for naval cooperation in and around Australia, which might include basing ships," Admiral Greenert said during a speech at a university in Canberra. It was unclear if Greenert was referring to permanent basing or rotational placement of ships. U.S. is in the midst of a "pivot-to-Asia" that will see 60 percent of its naval forces deployed in the region by 2020, a response to its growing strategic importance. It's a policy China claims is an attempt to contain its own military expansion into the South China Sea and Indian Ocean. Kuwait Foils Attack on Large Oil Tanker by Somali Pirates Source: worldtribune 14th February 2015 Kuwait Oil Tanker Co. said one of its vessels came under attack from pirates during a voyage to Djibouti. The company said the crew of the BURGAN tanker confronted and drove off the pirates without injuries, Middle East Newsline reported "They operated according to standard security procedures," Kuwait Oil Tanker chief executive officer Talal Al Khaled said The attack on Feb. 8 marked a rare attempt by Somali-based pirates to capture an oil tanker. BURGAN, owned by the Kuwaiti company, was loaded with 40,303 tons of aviation fuel and was moving through the Gulf of Aden to the Horizon terminal in Djibouti. Officials said the Indian Navy, with a counterpiracy contingent in the Gulf of Aden, also participated in driving off the attackers on Burgan. They said the pirates approached BURGAN on four boats. Marine Base While Australia has no formal U.S. naval bases, it has agreed to host as many as 2,500 Marines in the northern city of Darwin and the two countries regularly hold joint military drills. "This would not be a radical departure in alliance policy which is seeing an increased tempo of access to Australia by U.S. marines and will see more visits from the U.S. air force in the years to come," said Rory Medcalf, head of the National Security College at Australian National University, where the speech took place. Australia's Submarine-Building Capacity Trashed by Officials Overseas: Xenophon Eastern Naval Command to Induct 3 Vessels and Anti-Submarine Ship Source: ABC News 15th February 2015 Source: Deccan Chronicle 13th February 2015 The reputation of Australian-made submarines has been "trashed" overseas by the Government organisation responsible for securing the country's next fleet, independent senator Nick Xenophon says. He said officials from the Defence Materiel Organisation (DMO) questioned Australia's capacity to build submarines during high-levels talks with Japanese and European manufacturers late last year. "Apparently the overseas sub-makers were stunned by the comments made by our own DMO," Senator Xenophon said. "Any such comments are disgraceful." Senator Xenophon said the comments were interpreted by the manufacturers that the Government favoured building a fleet of up to 12 submarines overseas, despite having promised prior to the 2013 election to give the contract to Government shipbuilding company ASC in Adelaide. VISAKHAPATNAM: The Eastern Naval Command is inducting three more immediate support vessels. They will be deployed along the east coast. The ENC inducted three ISVs into its 83rd ISV squadron based at Vizag in June 2014. "The ISVs will be inducted in the next 10 days," ENC, Commander-in-Chief Vice Admiral Satish Soni said. ISVs are armed with machine guns and also carry modern navigational and communication equipment. An INS KAMORTA class anti-submarine ship will also be commissioned next year. The ENC also has plans to expand its ammunition depot at INS KALINGA in Vizag. He said that 2,000 acres will be acquired to set up another airfield at Bobbili where a squadron of MiG 29K aircraft will be stationed. 23 Maritime Policy & Law up 70% of the population, can be easily provided electricity for basic domestic purposes via solar energy. But no one will ever talk about that," he added. The former Navy chief has written an open letter to the prime minister, expressing his disappointment about dilution of Liability Act for setting up these nuclear power plants. These will absolve the nuclear plant manufacturers of responsibility in case of accidents in and around the site. He also said that the suppliers will get away completely, with the liability of Rs1,500 crore coming from a pool funded by Indians. Owners held Not Liable under Charterparties signed by Manager in Breach of Implied Warranty of Authority Source: Reed Smith 2nd February 2015 The claimant had chartered four vessels, the charter parties for which had been signed by the vessels' commercial manager. Each charterparty contained the phrase "the disponent owners signatory in contract", followed by the manager's name. During the negotiations, the manager had made it apparent that it was acting on behalf of Owners, and had said that Owners were being kept informed of the progress of negotiations. When the vessels were withdrawn from service, Charterers brought a claim against the manager and the registered owners of the vessels, arguing that in fixing the charterparties the manager had been acting as the Owners' agent, that Owners were bound by the charterparties, and that they were in breach by withdrawing the vessels. Charterers said that the phrase "disponent owners" in the charter parties was used in the sense of the manager having the power to fix charterparties on behalf of Owners. Owners denied that they were party to the charterparties and, if they were, that the manager had authority to act on their behalf. The Court held first that the manager had signed the charterparties as disponent owner, in the sense of being the manager of the vessels. The phrase "disponent owner" could be used to refer to a party who was the agent of the registered owner, if he was a manager with very wide powers (although the court acknowledged that the use of the phrase in this context is both rare and unusual). The Court also held that Owners had not expressly authorised the manager to conclude the charterparties. Charterers' claim against Owners, therefore, was dismissed. The manager, however, was liable to Charterers for breach of an implied warranty of authority. 16 Ships detained on Hours of Rest Deficiencies in Paris MoU Source: World Maritime News 2nd February 2015 Preliminary results from the Concentrated Inspection Campaign (CIC) on STCW Hours of Rest, carried out between September 1 and November 30, 2014, in the Paris MoU region show that 16 ships were detained as a direct result of the CIC for deficiencies related to hours of rest. Main areas of concern are hours of rest not being recorded properly and watchkeeping personnel without sufficient rest. The CIC questionnaire was completed during 4,041 inspections. A total of 912 CIC-related deficiencies were recorded and 16 ships (14% of the detentions) were detained as a direct result of the CIC during the 3 month period. Paris MoU Secretary General Richard Schiferli said "Insufficient rest of watchkeeping personnel has already caused several incidents over the past years. It may be the cause of fatigue, which can have major consequences for safety and the environment. 2 watch systems are particularly vulnerable in this respect." AMSA bans Vessel from Australian Ports for 12 Months. Source: PortNews 2nd February 2015 Anti-Nuclear Protests by CNDP in Nagpur For the first time, the Australian Maritime Safety Authority (AMSA) has banned a vessel from entering or using any port in Australia for 12 months. Indonesian flagged container ship RED ROVER (IMO9481673) was issued with a direction not to enter or use any port in Australia for 12 months after being detained by AMSA three times since September 2014. The most recent detention was on 28 January 2015 in Fremantle, Western Australia. All three detentions identified failings in the vessel's Safety Management System, including a lack of effective passage planning and failure to use appropriate chart s and publications. This is the third vessel operated by PT Meratus Line (Company Number 0313623) which has been banned from accessing Australian ports for a period of time. All three of these vessels repeatedly demonstrated they were not operating or being managed to meet applicable standards despite repeated advice by AMSA to take action to improve performance. Source: The Times of India 2nd February 2015 NAGPUR: Close on the heels of the Indo-US nuclear deal, the Coalition for Nuclear Disarmament and Peace (CNDP) has kicked off a two-day anti-nuclear campaign in the city. They are protesting the possible environmental, economic, health as well as political hazards the nuclear plants may cause around the nation. A public meeting to support the cause was at the Mure Memorial Hospital premises. It was chaired by former chief of Indian Navy Admiral Ramdas. Other activists like Lalita Ramdas, Kumar Sundaram, Yashveer Arya and Satyajeet Chauhan also spoke. "It is a myth that in the near future India would be unable to generate more electricity without using nuclear power," said Admiral Ramdas while interacting with TOI. Talking about fulfilling the demands of regions where electricity was never introduced, he said, "The rural areas, that make 24 making insurance, or some other form of financial security, compulsory. The Danish Maritime Authority (DMA) said that the Convention's implementation will set a new springtime course calling Danish companies and shipowners to prepare for new insurance and certification requirements. In addition, the Authority urged Danish shipowners with ships of or above 300 GT to forward applications for certificates to the DMA as soon as possible and well in advance of 14 April 2015 to avoid any problems. Mariners take aim at Autonomous Sailing “Buoy” Source: G Captain 3rd February 2015 Race organizers of the "Microtransat" apparently got the response they were looking for from the IMO and French Coastguard. Their race across the Atlantic using autonomous, 4 meter-long sailboats allegedly does not have any conflicts with the International Rules for Prevention of Collisions at Sea (COLGREGs) because these vessels would be classed as a buoys, not vessels. Because there's nobody on board and it's floating in the ocean, it must be a buoy… or a piece of debris, as one of our Forum members described. In the Microtransat's Frequently Asked Questions page, they bring up the question: Do the boats have to include any kind of autonomous collisionavoidance system to prevent collision with other floating objects? In response, the race organizers say no, citing that these boats do not carry passengers or cargo and thus do not satisfy the definition of a vessel according to COLREGS. ClassNK Approval of New Corrosion Resistant Steel gives Shipowners New Options Source: Class NK 5th February 2015 Leading classification society ClassNK (Chairman and President: Noboru Ueda) issued approval for Nippon Steel & Sumitomo Metal Corporation's newly developed corrosion resistant steel (NSGP™-2) for use on the upper deck and/or inner bottom of crude oil tanker cargo oil tanks (COT). Following earlier approvals of steels for the inner bottom plating of COTs, this marks the first time that approval has been granted for corrosion resistant steels for both the top and bottom parts of the COT, providing owners and shipyards with a practical alternative to coating systems. The innovative development is expected to significantly lessen the financial costs associated with applying protective coating to conventional steel during ship construction and after going into commission. Kochi to host first World Ocean Science Congress Source: Manorama Online 4th February 2015 KOCHI: Eminent oceanographers, environmentalists, naval exponents and maritime industrialists from across the world will converge here for the maiden edition of fourday World Ocean Science Congress (WOSC)-2015, beginning at Jawaharlal Nehru International Stadium on February 5. Kerala Governor Justice P. Sathasivam will inaugurate the Congress, which will deliberate on finding sustainable means to utilise ocean resources without causing damage to the oceans and their marine life. Union Minister of State for Agriculture Mohanbhai Kalyanjibhai Kundariya will also participate in the Congress. State Minister for Fisheries, Ports and Excise K. Babu will preside over the function. Prof. K.V. Thomas, MP; Dominic Presentation, MLA; S. Sharma, MLA; and National Fisheries Development Board (NFDB) Chief Executive Dr. M.V. Rao will participate in the inaugural function. The WOSC, jointly organised by Swadeshi Science Movement, Vijnana Bharati, Kerala chapter and Kerala University of Fisheries and Ocean Studies (KUFOS), Kochi, will have four Plenary Sessions, 13 Technical Sessions, exhibitions, a Round Table on Shipping and Ocean Resources, besides a National Fishermen's Meet. DMA urges Shipowners Removal Regulations to prep for Seacurus launches New South-East Asian PetroPiracy Cover Source: Marine Link 6th February 2015 Specialist marine insurance intermediary Seacurus has developed a petro-piracy endorsement which can be added to existing Kidnap & Ransom (KR) insurance cover in response to the evolving threats to ships, their cargoes and crews when transiting the South China Sea, Malacca Straits, Indonesian Archipelago and Gulf of Guinea. The new cover from Seacurus recognises the need to protect crews against the potential for a kidnapping situation, and ship and cargo owners against the risk of business interruption and property theft. In addition to the benefits of a $1m marine K&R policy, the cover includes as standard such additional benefits as loss of hire ($500,000), loss or theft of cargo ($500,000), loss of bunkers ($250,000), and loss or theft of money ($50,000) - all within an aggregate policy limit of $5m. Wreck Inspection Team Investigates Corruption at CSSC Source: World Maritime News 4th February 2015 Source: Sino Ship News 9th February 2015 With the upcoming entrance into force of the Nairobi International Convention on the Removal of Wrecks on 14th of April 2015, new regulations will be implemented affecting all signatory countries. Among several provisions, the Convention is aimed at placing financial responsibility for the removal of certain hazardous wrecks on shipowners, SHANGHAI: The anti-corruption inspection team, sent by the central government of China, has found corruption activities in the state run shipbuilding conglomerate China State Shipbuilding Corporation (CSSC), it said in a working brief. The central government started anti-corruption 25 inspections, directly oversaw by the president Xi Jinping, on 13 state-run groups including China State Shipbuilding Corporation, the China Shipping Group and oil giant Sinopec at the end of November 2013. Liu Zu, the leader of the team, said they have found the company's supervision mechanism weak, which has led to corruption activities in the procurement department involving senior officials in the company. The team has reported the information from the inspection to the Central Commission for Discipline Inspection and investigations continue. ILO Revises Convention Seafarers' Identity The International Chamber of Shipping updates Flag State Performance Table Source: PortNews 13th February 2015 The International Chamber of Shipping (ICS) has published its annual Shipping Industry Flag State Performance Table. ICS Secretary General, Peter Hinchliffe remarked "The very largest flag states, such as the Bahamas, Liberia and the Marshall Islands, as well as Hong Kong, Singapore, Cyprus and Greece, all continue to demonstrate very impressive levels of performance, as do all of the other large European and Asian flags." Given the nature of the indicators that ICS uses, whether or not a flag is missing one or two green squares on the ICS Table may not be especially important. For example, the fact that a certain IMO Convention may not have been ratified by a flag state does not necessarily mean that its requirements are not being implemented in practice. Amongst the 19 largest ships registers, covering more than 85% of the world fleet, none have more than three potential indicators of negative performance. Documents Source: World Maritime News 11th February 2015 International Labour Organization (ILO) held a tripartite meeting of employers, seafarers' unions and governments in Geneva, to consider possible adjustments to the Seafarers' Identity Documents Convention (Revised), 2003 (ILO 185), the International Chamber of Shipping, shipowners' representative at the meeting, said in a release. ILO 185 requires ratifying nations to issue resident seafarers with Seafarers' Identity Documents (SIDs), and to facilitate the entry of foreign seafarers holding SIDs into their territory for the purposes of shore leave, transfer and transit. However, since its adoption in 2003, the Convention has failed to achieve widespread implementation, in large part because the technical standards adopted have been superseded by the technologies and infrastructure now used for the issuance and verification of ePassports. Most notable among the recommendations agreed by the tripartite meeting was a proposal that the technical specifications for Seafarers' Identity Documents, within the annexes to ILO 185, should be updated in order to bring them into line with those technologies currently used for ePassports. COSTA CONCORDIA Sentenced to 16 Years Captain Found Introducing Smart Containers Source: World Maritime News 13th February 2015 French liner CMA CGM has increased its capital investment in the TRAXENS startup as it strives to introduce the industry's first containers equipped with tracking sensors. In 2015, TRAXENS, developer of innovative containers monitoring systems, will equip the first CMA CGM containers with its patented technology. The technology will enable the customers to know in realtime not only a container's position, but also its temperature, the vibrations it will be subjected to, any attempted burglary, the presence of traces of specific substances in the air or even the regulatory status of the cargo. "With this technology, CMA CGM brings the shipping industry into a new era. Guilty, Source: G Captain 12th February 2015 SEWOL Ferry Disaster: South Korean Coastguard Officer Sentenced to Four Years in Jail on Manslaughter Charges An Italian court sentenced the former captain of the COSTA CONCORDIA cruise liner to 16 years in prison for his role in the 2012 shipwreck that killed 32 people off the Tuscan holiday island of Giglio. Francesco Schettino was commanding the vessel, a floating hotel as long as three football pitches, when it came too close to shore and hit rocks off the island, tearing a hole in its side. Schettino was convicted of multiple manslaughter, causing a shipwreck and abandoning his passengers in one of the highestprofile shipping disasters in recent years. He was also accused of delaying evacuation and abandoning ship before all the 4,229 passengers and crew had been rescued. Prosecutors had asked for a prison sentence of 26 years for Schettino, who has admitted some responsibility but denied blame for the deaths that occurred during the evacuation. The court sentenced Schettino to 10 years for multiple manslaughter, 5 years for causing the shipwreck and one year for abandoning his passengers. Source: abc.net 14th February 2015 A South Korean coastguard ship commander has been jailed for four years on manslaughter charges related to last year's Sewol ferry disaster which killed more than 300 people. The court in the southern city of Gwangju found Kim Kyung-il guilty of professional negligence resulting in death, a court spokesman said. Prosecutors said Kim, whose vessel was the first on the scene as the Sewol listed and sank, bore responsibility for the botched rescue effort that wasted precious time and delayed the evacuation of passengers from the stricken ferry. He was also charged with making a false report that he had broadcast an evacuation order through loudspeakers. The overloaded and unstable Sewol was carrying 476 people when it capsized off the southern island of Jindo last April. 26 Maritime Environment decision comes as global air pollution from shipping in ports is projected to quadruple by 2050 from current levels, according to the OECD's International Transport Forum. Currently ships are responsible for more than 3% of global greenhouse gas (GHG) emissions. The European Commission estimates that CO2 emissions from ships sailing in European waters amounted to 180 million tonnes in 2010. If these emissions were reported as a country, maritime transport would be Europe's eighth largest emitter. According to the third greenhouse gas study conducted last year by the UN's shipping body, the International Maritime Organisation (IMO), if other sectors of the economy reduce emissions to keep global temperature increases below 2 degrees Celsius, while shipping emissions continue on a business-as-usual trajectory, then by 2050 shipping emissions could comprise a whopping 10% of allowable global GHG emissions. Turkish Environmentalists boycott Ship Carrying Radioactive Waste Source: World Maritime News 3rd February 2015 Environmentalist groups are urging Turkish authorities to prevent a ship, believed to be loaded with radioactive waste, from entering Turkish waters. Namely, Chevronoperated FPSO KUITO has left Angola recently and is approaching Aegean port of İzmir, where Aliaga shipyard is situated. The vessel is supposed to dock in Izmir's Aliaga shipyard for dismantling. According to head of Chamber of Environment Engineers (ÇMO), Baran Bozoğlu, quoted by Turkish newspaper Today's Zaman, the ship contains intensively high radioactive materials and waste. Bozoğlu urged the authorities to stop the ship before it enters Turkish waters and examine it. He also raised concerns on whether the ship had actually been cleared to enter Turkish waters calling the relevant authorities to inform the public on the matter. The Turkish law prohibits entrance into the country's national waters to vessels containing nuclear wastes, restricting them to 12 nm from shore. The FPSO KUITO is owned by Sonasing and operated by OPS, both JV companies between SBM Offshore and Sonangol. MISCELLANEOUS HHI Posts USD 2 Bln Loss Source: World Maritime News 13th February 2015 Monitoring Ships' Energy Performance Step in Right Direction The world's largest shipbuilder Hyundai Heavy Industries (HHI) recorded a loss of USD 2 billion (KRW 2.21 trn) in 2014 as opposed to KRW 146.3 billion profit in 2013. The South Korean shipbuilder's full year revenue dropped 3% year-on-year totalling in KRW 52.58 trn. The full year figures were in line with expectations as HHI continued its losing streak throughout 2014, recording KRW616.6 billion and KRW1.175 trillion losses in the second and third quarter of 2014 respectively. The fourth quarter was considerably better for HHI, as its net loss dropped from 227.8 billion won in 2013 to 37.9 billion won in the October-December period. Source: World Maritime News 9th February 2015 Introduction of fuel monitoring consumption mechanism for ships, approved by the European Parliament, can help CO2 and fuel use cutting happen indirectly, according to Transport and Environment (T&E) NGO umbrella organization. The regulation, which still requires the support of the Parliament plenary, only monitors fuel consumption, covering CO2 and not air pollutants like SO2 or NOx. Should it go ahead, all shipping companies calling at EU ports will, for the first time, have to measure and publicly report ships' energy performance, including carbon emissions. Ship operators will be required to publicly report three metrics to measure the energy performance of ships: the theoretical energy performance of the ship known as the Energy Efficiency Design Index (EEDI); its real-world fuel consumption; and its energy efficiency. The more cargo a ship can carry using the same amount of fuel, the more efficient and cheaper it is to run. "The proposed law does not cut CO2 and fuel use directly but can help make it happen indirectly. Transparency in ships' energy performance contributes to better-informed decisions on which types of ships, companies and routes to use. This move is a stepping stone to an eventual measure to require actual emissions reductions, which is what is urgently needed," Sotiris Raptis, clean shipping officer at T&E, said. The environment committee vote and the Council of Ministers' Five killed, Four missing in Petrobras FPSO Accident Five people were killed and four are missing following an explosion a day earlier in a Brazilian offshore oil and natural gas field run by Petroleo Brasileiro SA, said Norway's BW Offshore Ltd, which owns the production ship on which the accident occurred. The death toll rose from three, according to Petrobras, as the oil company is commonly known, and Brazilian oil regulator ANP. All the workers killed on the platform were BW Offshore employees, BW said. While the company didn't detail their precise nationalities, it said nearly all the workers on board were Brazilian. Ten others were injured, with two in critical condition, BW Offshore said, with these figures confirmed by Petrobras and regulator ANP. 27 designed & printed by: facebook.com/adworldpk Source: G Captain 13th February 2015
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