Singapore www.SeaShipNews.com
A holistic guide to shipping’s centre of gravity
Market Report 2013
Taking the pulse of maritime sectors in the Lion Republic
An Asia Shipping Media publication
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Contents
Majulah Singapura 3
Linking Brad Pitt to shipping in Singapore
13 Legal debate 15 LNG hub in the making 17 Shipowners platform 21 Offshore interviews 24 Those who have just touched
4
The state of the national economy
7
Tuas shift for the port
9
How the republic’s yards are coping amidst growing competition
12 Ship finance aspirations
down
31 Shipmanagement margins squeezed
32 Choppy times for bunkering
The leading source on Southeast Asian maritime and offshore
COMMERCIAL DIRECTOR Grant Rowles grant@asiashippingmedia.com
EDITORIAL DIRECTOR Sam Chambers sam@asiashippingmedia.com
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CHIEF CORRESPONDENT Katherine Si katherine@asiashippingmedia.com CORRESPONDENT Jason Jiang jason@asiashippingmedia.com ECONOMIST Gary Bowerman
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All editorial material should be sent to sam@asiashippingmedia.com or mailed to Office 701, 9 Renmin Lu, Zhongshan District, Dalian, China 116001
www.seashipnews.com 1
Editorial
The Brad Pitt of shipping
W
hat’s Brad Pitt’s picture doing here
following the substantial growth in its shipping
instead of your ugly editor’s mug, and
sector over the past decade. However, this was not
what the hell does he have to do with
enough to persuade the audience that London
our industry? Read on! Singapore’s rise to the top table of shipping has
had completely lost its crown, and Alan Marsh, the former ceo of Braemar Shipping Services, was able
been well detailed; an enticing blend of incentives
to demonstrate that key elements of the London
has brought thousands of maritime firms to its
market will continue to play a dominant role going
shores. Where it actually sits at the table is now a
forward.
hot topic. Has it even surpassed mighty London,
Meanwhile, the chairman of the International
home to many of the top shipping organisations in
Chamber of Shipping, Masamichi Morooka, was
the world?
adamant that London is, without doubt, “still the
London, feeling chastened by the rise of so many Asian maritime centres, got its act together
shipping capital of the world”. Taking a sensible point of view on the debate
this September organising a highly successful
was Frontline’s Jens Martin Jensen, who stated:
shipping week. Nevertheless, Singapore was the
“It’s London and Singapore, not London versus
elephant in the room throughout the week. Much
Singapore.”
discussion focused on shipping centres and who
One of the world’s leading maritime recruitment
was top of the pile, something that quickly came
experts sees Singapore as the hottest place on the
down to a straight shoot out between London and
planet for shipping at the moment.
the Lion Republic. Denis Petropoulos, director at Braemar
When quizzed as to which place was the most vibrant shipping centre in the world based on the
Shipping Services, said that Singapore was without
amount of HR movements, Phil Parry, chairman of
doubt the preeminent maritime centre in Asia and
UK maritime recruitment firm Spinnaker, was in no
was snapping at London’s heels. He said Singapore
doubt. “Singapore wins through as the Brad Pitt of
“has become the world’s most important shipping
shipping in the recent boom," he tells us.
centre after London”. Nevertheless, Petropoulos had special praise
London then is perhaps the Laurence Olivier in this alternative maritime movie universe.
for the British capital. “London is not a maritime capital, London is the maritime capital,” he said. The Institute of Chartered Shipbrokers held a
The Singapore annual
seminar on the London versus Singapore debate.
SeaShip News is the leading daily news service covering Southeast Asian
Heidi Heseltine, managing director of Singapore
maritime and offshore. This publication serves as the definitive annual
and London based specialist shipping recruitment
on how the Lion Republic is faring shipping-wise. Contained on every
firm Halcyon Recruitment, made a very strong
page is a useful timeline of key events that have shaped Singapore’s
case for Singapore being the main shipping hub
shipping year. For further daily updates check www.seashipnews.com .
www.seashipnews.com 3
Economy
Mild expansion Gary Bowerman gets caught between the bulls and the bears
A
lthough Singapore’s government has been steering the city-state’s economy towards less turbulent waters of late, its outlook
remains decidedly cautious. In August, the Ministry of Trade & Industry noted that “risks to the global growth outlook” prevent a more upbeat 2013 GDP growth forecast than 2.5–3.5%, which was slightly revised from a previously broader range of 1–3%. That said, a sluggish first quarter suggested choppier seas ahead for an economy that has been buffeted by the icy winds blowing from European and US export markets. Singapore’s economy grew by 3.8% year-on-year in the second quarter – a major relief from the paltry 0.2% recorded between January and March. The finance and insurance sector played a pivotal role in Q2, expanding by 13.1%. Manufacturing growth remained slow, at 0.2%, although that was offset against a 6.7% decline in Q1. Construction was up by 5.1%, while
Analysts worry about the growth differential between services and manufacturing
transportation and storage increased 2.5%,
it admittedly fared better than its struggling
following a 0.9% contraction in the previous
Southeast Asian counterparts. Its bumpy fall
quarter. Total exports recorded negative growth for
against the US dollar began at the turn of the year,
the fourth consecutive quarter, although the 0.1%
but it recovered some ground in the first half of
drop was relatively good news compared to Q1’s
September. Singapore’s deep foreign exchange
8.7% reverse.
reserves and a robust current account, however,
Clouds have also hung over the stock market, with the STI down by 1.86% year to date in
require retouching in the near term.
mid-September, while the usually upstanding
The outlook for the second half of 2013 is
Singaporean dollar came under pressure, though
January 1
suggest the central bank’s currency policy will not
one of measured hope, although even the most
BW Gas orders its first LNG-FSRU HK’s Wallem announces big Singapore expansion
3
6
9
11
12
14 13
Mass sackings at Chemoil 4
www.seashipnews.com
15
Economy The usually upstanding Singaporean dollar has come under pressure
upbeat analysts worry about the growth differential between services and manufacturing. The bulls are pinning their hopes that stronger recent industrial output data from China, in particular, Japan and Korea, plus increased export and import figures for Singapore in July, are indicators of rising global
By contrast, bearish observers question the
economic sentiment. Singapore’s manufacturing
validity of attributing too much value to a positive
output increased 2.7% year-on-year in July, while
single month – transport and engineering, after
transport and engineering output increased 13.9%,
all, posted a 2.2% decline year-on-year in the first
and marine and offshore engineering posted a
seven months of 2012 – and ponder from where
19% gain, largely due to rig building and ship
Singapore’s sustainable manufacturing uplift will
conversion projects.
emerge.
More positively, July saw the largest monthly
The result is a mixed bag of indices that do
number of vessel arrivals (11,992) and shipping
not fully indicate that the waters around the Lion
tonnage (204,455,000 gt) so far in 2013, while
City are becalmed. Achieving the upper end of the
monthly discharged air cargo has only been
government’s 2.5-3.5% GDP growth band would
bettered once this year, in March.
represent a healthy return from 2012’s laggardly
Inflation is being carefully managed, despite
1.3%, but would still be well down on the 4.9% of
strong wage pressure. For 2013, core inflation is
2011. As the Monetary Authority of Singapore noted
predicted to average 1.5–2.5%, while manufactured
in early September, barring any external shocks,
product prices were weighted at 97.2 in July,
steering the economy towards a “mild expansion
compared to 100.0 in December 2012.
path” is probably the best to be expected.
Singapore’s GDP by sector, Q2 2013 v Q1 2013 Absolute Value
Q2 2013 (US$m)
Q1 2013 (US$m)
GDP at Current Market Prices
90,166.1
87,090.8
Goods Producing Industries
22,594.7
19,895.8
Manufacturing
17,548.3
15,086.2
Construction
3,654.2
3,653.2
Utilities
1,365.7
1,128.5
Other Goods Industries
26.5
27.9
Service Producing Industries
57,717.9
57,940.6
Wholesale & Retail Trade
14,025.5
13,436.6
Transportation & Storage
6,378.9
5,929.2
Accommodation & Food Services
2,116.2
2,092.3
Information & Communications
3,108.1
3,096.1
Finance & Insurance
10,900.2
10,912.6
Business Services
12,463.5
12,267.5
Other Services Industries
8,725.5
10,206.3
Ownership of Dwellings
4,058.5
4,015.1
Source: Singapore Ministry of Trade & Industry
MacGregor to shift HQ to Singapore Fincantieri completes buyout of STX OSV
16
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22
30 23
25
28
Jurong Shipyard settles case with Ernst & Young
31
www.seashipnews.com 5
Port
Terminals, Version 2.0 Singapore’s boxport is to shift to Tuas, freeing up a large chunk of prime real estate
I
n decades past when a port lost its pre-eminence it meant only one thing, a slow, one directional decline. Not so, however, with Singapore. The
world’s top boxport until 2010, when Shanghai overhauled it, has not been moping about the loss of its crown, the focus is very much on the future. Under trying circumstances, Singapore’s port has had a solid year with throughput in the first ten months up 2.6% to 27.13m teu, putting it on course to sail very close to Shanghai’s 2013 volumes, anticipated to be in 33m teu range. However, 2013’s volumes are insignificant
CH CHING Property developers are delighted with the port’s move from the city centre
compared to what prime minister Lee Hsien
We will build capacity ahead of time
Loong has planned for the republic’s terminals – a wholesale shift from the city centre to Tuas at a cost estimated in the region of $8bn to nearly double port capacity and free up 1,000 ha of prime
important part of our economic landscape,” Teo
real estate.
said.
Lee said this August the first berths in this
Singapore upping its container terminal game
dramatic port relocation would be operational by
comes at a time of acute pressure for transhipment
2022. Transport minister Lui Tuck Yew says the
business in the region with neighbouring Malaysia
new site will be able to handle 65m teu.
and Indonesia both touting new port projects and
“Tuas provides a suitable location because of
Myanmar outlining terminal plans too.
its sheltered deep waters and proximity to both our
Dr Jonathan Beard, managing director of GHK
major industrial areas and international shipping
and one of the best known names in ports analysis,
routes,” Lui said earlier this year.
sees “intense competition” in Southeast Asia for
Josephine Teo, senior minister for finance
transhipment volumes, something that is only set
and transport, speaking at this year’s Singapore
to grow.
Shipping Association annual dinner, stressed
“Increasingly it is a very tough game,” he
that the government viewed developing maritime
comments. “These ports have to invest a lot but
infrastructure and business as a priority. In the
revenues per teu are not going up.”
coming decades a new airport will come up in the
Indeed, the yield per teu for PSA, the dominant
east of the republic, while the port will be shifted to
port operator in Singapore, is around 50% of its
the west of the country, Teo outlined.
fellow Southeast Asian terminal operator ICTSI,
“We will build capacity ahead of time to ensure the maritime sector remains a very
thanks to its heavy dependence on transhipment cargoes, according to statistics compiled by GHK.
Reflect Geophysical applies for court protection
February
Cambridge Academy of Transport launches in Singapore
1
5
9
18 13
16
Restructuring announced for struggling Jason Marine
25 21
27 28
NOL completes sale of its HQ International Paint relocates to Singapore www.seashipnews.com 7
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Yards
Global footprint
Keppel and Sembcorp yards around the world, including proposed ones
Singapore’s two main shipbuilders are extending their expertise across the world
S
ingapore’s dominant two
Named Baku Shipyard, the new
Norteamérica, S.A. de C.V. (PMI), both
shipbuilding conglomerates,
62 ha yard is designed to undertake
subsidiaries of Mexico’s national oil
both renowned for world class
the construction of a wide range of
company, Petroleos Mexicanos (PEMEX).
operations, are building global empires.
specialised vessels and merchant
Singapore continues to defy the odds,
ships including subsea vessels, anchor
and operate a yard facility in Mexico,
churning out vast amounts of high
handling tug/supply vessels and
the first phase of which is to support
tech offshore infrastructure as well
multipurpose offshore support vessels
the construction of six KFELS B class
as competing globally on the ship
such as platform supply vessels, as well
jackup drilling rigs for PEP. To be located
repair front. Were the sun to set on the
as tankers and cargo vessels. The yard
strategically in the Port of Altamira along
republic’s shipyards, however, their
also has ship repair and conversion
the coast of the Gulf of Mexico, the
global footprint, linked invariably to
capabilities.
proposed yard will cost around $400m,
energy intensive areas, will ensure
Baku Shipyard adds to Keppel’s
Singaporean shipyard know-how will
existing footprint in Azerbaijan where it
continue for generations.
has been operating the Caspian Shipyard
Keppel already has facilities in the
The MoU is to jointly develop, own
with the first phase estimated at about $150m. Not to be left behind is Sembcorp
Company (CSC), also a joint venture
Marine, which already has yard presences
United Arab Emirates, Qatar, Brazil,
between Keppel and SOCAR, since 1997.
in Brazil, India, the US, the UK and
Azerbaijan, Kazakhstan, China, the
Tong Chong Heong, ceo of Keppel
China. In August the company signed
Philippines, Indonesia, the US and the
Offshore & Marine, said, “The new yard
a memorandum of understanding with
Netherlands – an unmatched global
reinforces Keppel O&M’s Near Market,
Saudi Aramco and National Shipping
reach. Nevertheless, it continues to
Near Customer strategy and enables
Co of Saudi Arabia (Bahri) to prepare
search for more opportunities around
us to unlock synergy in our Caspian
a detailed feasibility assessment on
the world. In September Keppel opened
operations.”
developing a shipyard in the Arab nation.
a second yard in Azerbaijan in a joint
In October Keppel O&M signed
The planned maritime yard would provide
venture with the State Oil Company
a memorandum of understanding
engineering, manufacturing and repair
of Azerbaijan Republic (SOCAR) and
with Mexico’s PEMEX Exploracion
services to rigs, platforms, commercial
Azerbaijan Investment Company (AIC).
y Produccion (PEP) and P.M.I.
vessels and offshore service vessels.
Max Hartvigsen resigns as president of Jaya Offshore Second ship collision kills one
March
9
1
3
6 Ship collision, one dead Otto Marine gets first ship orders for 2 years
11
12
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15
www.seashipnews.com 9
Yards
Rig crown stolen Cheap prices, aggressive financing terms and early delivery slots have seen China surpass Singapore in jack-up construction, writes Sam Chambers
W
hile 2013 will go down as another very strong year for Singapore’s offshore building
yards there is an ominous portent of things to come, something blowing in the wind from China. This year has been a “momentous” one for China’s offshore ambitions as a mixture of available slots, cheap prices and generous financing will see the People’s Republic surpass Singapore in the number of drilling rigs built, according to research from Religare Capital Markets. Speaking at Marine Money’s Singapore event this September Vincent Fernando, a director at Religare, said China accounted for 34% of the
Chinese yards are not focused on short-term profits
market share for drilling rigs in the
noting how since they were predominantly
year to date, with Singapore on 23%, the
state run they had very deep pockets.
first time China has surpassed the Lion
This has begun to impact Singaporean
suggesting owners ordering in the People’s Republic need to have extensive shipbuilding experience and a big team on the ground. It is not simply down to price for this year’s astonishing turnaround. Aksel Olesen, managing director of Pareto
Republic in this field. Korea is still top
shipbuilders’ financials, with both Keppel
Securities Asia, maintained that investors
with 41%.
and Sembcorp mentioning Chinese
still favour Singapore, but the problem
competition impacting margins in their
is that the earliest slots of the Southeast
latest quarterly results.
nation’s land constrained yards is in
“In 2013, China will have stolen the market share crown from Singapore,” Fernando said. This huge change
2016, where as China still has 2015 slots.
“The downside of margins of
happened far faster than most expected,
Singaporean yards will get worse going
he admitted.
forward,” Fernando said.
Chinese yards are offering very
“Singapore does not have the land
Audra Low, head of origination and
aggressive payment terms – with just 10%
structures at Clifford Capital, warned that
needed up front, where as the best that
Singaporean yards would find it “very
Singapore can offer is 28%.
hard” to challenge those who are not
Chinese prices for jack-ups have been reported as around 30% cheaper than in Singapore.
capacity at its yards to compete.” Olesen maintained: “The Chinese will dominate in the years to come.” The leading offshore players in China have also poached staff from Singapore
profit orientated. Despite the sudden leap by Chinese
and Korea to boost their capabilities. A silver lining was offered by Jens
yards, quality remains an issue, said
“Chinese yards are not focused on
Jesper Andresen, ceo of Axis Offshore.
short term profits. They just want to shift the market to China,” Fernando said,
March 16
Fernando concurred, saying:
“Building is much harder in China. China is not for everybody,” he said,
Halliburton opens giant centre in Jurong Management reshuffle at Otto Marine
18
19
22 NOL names largest ship, APL Temasek
25
Taubken, vice president at DVB bank, who noted importantly that Singaporean rigs command a higher price in resales.
26 28 Tanoto Shipyard fire, 3 die www.seashipnews.com 11
Finance
Readily available Owners continue to flock to this country thanks to the ease and speed with which capital can be raised, notes Jason Jiang
I
s Singapore the easiest place to raise shipping
Manish Singh, who runs consultancy
funds in the world? The continued decamping of
Ideocean, notes the considerable strengths of
shipowners to the Southeast Asian nation lends
the wider banking sector, which ensures all
credence to this idea. In addition to more than 20
ancillary expertise are present for shipowners.
major banks with shipping finance portfolios, there
Also, important is the existence of ship finance
is a wide array of alternative financing options,
structuring and legal expertise along with other
including shipping trusts and listings on the
functions like credit risk assessment.
Singapore Stock Exchange.
To cap it off, everything is in walking distance
DNB Bank’s recently appointed head of Asia, Vidar Andersen, reckons the republic is racing ahead of its rivals. “I see Singapore as uniquely placed as a global maritime hub,” he says, adding: “It covers the whole value chain from education through manufacturing and services to finance better
of each other, making sealing a deal a veritable stroll compared to many other shipping centres.
Singapore covers the whole value chain better than any other city in the world
than any other city or region in the world. In today’s market where liquidity is prevalent in Asia, especially compared to Europe, Singapore obviously has a stronger position also as a ship finance hub than only a few years back.” Comments Abhishek Pandey, head of shipping, Southeast & South Asia at Standard Chartered Bank: “Singapore offers a probusiness environment given its well-regulated banking sector, excellent infrastructure, costcompetitiveness, highly skilled labour force, fast business start up times, competitive tax regime, strong investor protection and high levels of transparency and governance.”
April
UP AND UP The local stock exchange is one of the most vibrant in the world for shipping
Temasek announces creation of LNG vehicle Pavilion Energy
15 16 1 12
5
www.seashipnews.com
8
10
Swiber buys out Pape Engineering
Uni-Asia spends $73m on 3 newbuilds
19
20
25 26
Portek buys Latvian terminal MTQ’s takeover of Neptune Marine complete
30
Law
Advantage hammered home BIMCO’s decision to give the nod to Singapore as an arbitration centre a year ago is revolutionising the city state’s maritime legal set up
I
n November last year, the global shipping association BIMCO adopted Singapore as the third seat of arbitration in its Standard Dispute
Resolution Clause alongside London and New York. Singapore Maritime Chamber of Arbitration (SCMA) rules become default procedural rules when Singapore is selected. “This is major game changer,” argues Lee Wai Pong, executive director of the SCMA, “and is expected to tilt the balance of arbitration related work more towards Singapore from the hitherto dominant centre of London.” Against this backdrop, SCMA hosted its third
insights for SCMA in the development of its future
This is major game changer and is expected to tilt the balance of arbitration related work more towards Singapore from London
roadmap. He noted the unique nature of maritime
beyond disputes arising from traditional shipping
arbitration as compared to mainstream practice
contracts into contracts related to the commodities
and suggested that the divergence be preserved
and the oil and gas industries.
annual conference at the Supreme Court on 4 September to more than 150 delegates. Guest of honour was the chief justice Sundaresh Menon who in his keynote speech highlighted the continued support of arbitration development by the judiciary and legislature and provided valuable
and further refined in order to better suit the
As a mark of its international acceptance,
requirements of the maritime industry.
more than 50% of the disputes registered non-
SCMA has seen strong growth in the number of
Singaporean parties. New procedures streamlining
case references, panel of arbitrators and requests
arbitration for disputes involving collision liability
by parties for appointment of arbitrators. The
apportionment and settling of survey fees will be
diversity of cases registered is also spreading
launched soon.
May Sinwa offloads AMS stake
1
3
LNG terminal starts ops
6
7
9
15 12 Samudera Shipping ceo resigns www.seashipnews.com 13
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FUTURE FUEL Singapore’s LNG terminal is set to handle 9m tons a year
LNG
Gas hub ambitions A first import terminal in Jurong is up and running while an LNG investment vehicle has also been formed as Singapore looks to lead Asia’s gas dash
B
uild it (throw in a bundle of incentives) and
Petronas, has been appointed chairman.
they shall come has been the maxim that has worked wonders for Singapore’s maritime
Pavilion Energy is investing globally across LNG-related businesses, including LNG trading
and commodities scene in the past 15 years. The
and exploration as well as storage, processing and
same tactics are now being lavished on liquefied
shipping.
natural gas to ensure the republic becomes the leading regional gas hub.
“We will acquire assets across the full LNG value chain by building strong relationships with key
“In the commodity markets, location, location, location can be more important than production—
partners, investing and co-investing in gas acreage, liquefaction plants and assets, shipping and
strategically as well as geographically,” argues
In the commodity markets, location can be more important than production
June Ho, director at legal firm Pan Asia Wikborg Rein. “Singapore understands this concept better than most,” she continues, “and has already demonstrated this by creating internationally recognised hubs in insurance, financial services, capital raising, shipping, O&G construction, and
regasification,” Seah said this September.
refining. Now LNG is in Singapore’s sights.” Singapore LNG inaugurated the city-state’s first
“I can say with confidence that Singapore will devote itself into a major LNG trading hub soon in
gas terminal this May, seven years after the plan
the region. I believe we have what it takes to attract
was first mooted. Costing an initial $1.4bn, the
growing LNG volume into Asia, and will be in a
facility, located in Jurong, will eventually be able to
position to set LNG prices in the region,” he added
handle 9m tons of gas a year.
In November Pavilion Energy paid $1.3bn for a
What the authorities realised early on is that building infrastructure is but one part of the
20% stake in three gas blocks offshore Tanzania in East Africa.
jigsaw, being a lynchpin in buying, selling and
“As Singapore continues to expand its global
distribution is what makes a hub. Pavilion Energy
presence in the marine and offshore industry and
was formed this year by sovereign wealth fund
through initiatives undertaken by the government,
Temasek Holdings to this end. The new firm
we will certainly see continued growth in the LNG
is headed up by technology entrepreneur and
market. This will provide many new opportunities
innovator Seah Moon Ming, who joined Temasek
in the fields of engineering, finance and brokerage
from ST Engineering, where he was deputy
for Singapore-based companies,” concludes Derek
ceo. Hassan Marican, former ceo of Malaysia’s
Novak, vp of operations at class society ABS.
Successful rights issue for Rickmers Maritime
May 17 16
Fuzhou port investment for PSA Lars Christensen new ceo of Epic Pantheon International Gas Shipping
29
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5 maritime firms convicted for poor treatment of foreign workers Toll opens redeveloped Loyang offshore supply base Ezra cashes in Ezion stake www.seashipnews.com 15
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GOTHENBURG • HOUSTON • RIO DE JANEIRO • COPENHAGEN • SINGAPORE • BEIJING
Owners
Opportunities abound SeaShip News makes it a priority to be in touch with top shipowners every day. Below are some of their thoughts
K
enneth Glenn,
view, Phoon warned he felt the global
Heavy Industries. In total, Enesel has
president of
orderbook was still “alarmingly high”,
ordered ten 13,800 teu ships, which are
containerline
while scrapping was slowing down.
going on charter to Taiwan’s Evergreen
APL, shrugs his
“Personally, I think there is too much
and four 9,400 teu ships which will go on
shoulders and
eco legislation coming out at the moment,”
charter to Hamburg Süd. The first ship was
looks fairly non-
Phoon said.
named and delivered to Evergreen on 17
plussed when asked
On the domestic front, Phoon said
September.
by SeaShip News his thoughts on how
Singapore, as a shipping hub, remained a
the new P3 alliance will change his
“very competitive” place to do business.
business. The grouping of Maersk, MSC
On Enesel’s business model for Singapore, Poulsson says, “There will not
Elsewhere in the world of container
be any speculative ordering. The company
and CMA CGM has been the container
shipping, another senior member of the
will only order with reliable and trusted
shipping story of the year, but for Glenn
SSA is making quite a splash.
end users secured.” Having said that,
it is something he’s prepared for. “It’s
Were Esben
Poulsson admits, “There is an appetite for
inevitable,” he says, “the whole industry is
Poulsson to carry
scaling up and these days to operate you
a set of cards for
have to have big ships.”
all the boards and
Top gas
associations he sits
One of shipping’s blue chip names, BW
March of the first of ten 14,000 teu ships,
on he would have
Group, has undergone a remarkable
which followed on from ten 10,000 teu
little spare space in
transformation since the onset of the
vessels it took in the last couple of years.
his hand luggage.
downturn in 2008, ditching its former
To this end APL took delivery this
Glenn was speaking to SeaShip News
more.”
bulk reliance for a far greater exposure
As well as his commitments to the
to gas.
at the annual megabash that is the
SSA, the Singapore Maritime Foundation,
Singapore Shipping Association (SSA)
the International Chamber of Shipping,
dinner. Speaking at the event, having
Epic Shipping, AVRA International and
company, casts his mind back five years
been reelected as SSA president, senior
Straits Tankers, the former Torm man is
ago and compares his fleet then and now.
Evergreen employee Patrick Phoon said
chairman of Enesel Pte Ltd, a Singapore management company for a fleet of
gas,” he says, adding that more than 50%
“reasonably good
newbuilding containerships delivering
of BW’s portfolio is now gas-related, the
shape” despite all
during 2013 and 2014.
fastest growing area of business for the
The Singapore offshoot of the Athens-
faced. term point of
June
fleet. BW Gas ordered four plus two options
based Enesel SA is charged with looking
From a long
4
“We have shifted more emphasis into
shipping was in
the problems it
1
Andreas Sohmen-Pao, the ceo of the
after the owning companies of a series of
of very large gas carriers (VLGCs) at
large boxships delivering from Hyundai
Hyundai Heavy Industries in Korea this
STX Pan Ocean files for court receivership Oil Spill Response Limited opens base in Loyang
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SeaShip News celebrates its 1,000th story Former OOCL cfo joins new Ofer Singapore firm
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Owners cautiously confident, saying: “Indications are that a gradual recovery is around the corner.” Another Scandinavian firm, Stena Bulk, is among the most active bulk-wise in the Lion Republic. In February, Stena Bulk and Indonesia’s Golden AgriResources (GAR) set up a product tanker joint venture, Golden Stena Bulk. The jv has since ordered six product tankers at Guangzhou Shipbuilding International. In June 2012, Stena Weco – the joint venture between Stena Bulk and Danish Dannebrog – formed a 50-50 joint August. Clarkson data puts the 84,000 dwt
gas finds. The fundamentals would appear
venture with GAR. The joint venture,
quartet as due for delivery in 2015.
to be positive, but as with every shipping
Golden Stena Weco, was aimed at
sector it is cyclical. Margins are high
providing an overall solution for GAR’s
of an IPO in Oslo, something that is set to
currently and therefore outside investors
international transportation of its palm oil
land the group more than $500m.
are entering the newbuild market. This will
products.
BW Gas’s LPG fleet is now in the throes
Elsewhere in the Singapore LPG landscape, Petredec, one of the world’s largest LPG traders, is moving its sights
lead to a fall in margins further down the road.”
“Golden Stena Bulk can be seen as the second step in our collaboration with leading palm oil plantation company, GAR.
towards more downstream and storage
New bulk contenders
operations as it gears up to be a full LPG
Nicholas Fisher will
Erik Hanell, president and ceo of Stena
logistics leader. Founded in 1980 Petredec,
use his experience
Bulk. “Such strategic partnerships are
now shifting more than 12m tons annually,
gained in diversifying
a well-tried concept for us and involve
is in a period of rapid expansion. Its fleet
Oman Shipping
coordinating complementary assets,
consists of 18 owned ships, two bareboat
Company to broaden
know-how and experience. With GAR’s
chartered, five on order and 32 on time
the revenue base for
robust network and intimate knowledge of
charter. Giles Fearn, chief executive, says
Singapore’s Masterbulk, having taken on
the region, this strategic partnership gives
more newbuild orders will follow.
the ceo role a couple of months ago.
us greater access to the Southeast Asian
For us, it’s also a gateway to Asia,” says
“Diversification in dry bulk activities
“Petredec is in a period of high
will be key for Masterbulk’s business
investment in
going forward,” Fisher says.
In other Stena news, Erik Lewenhaupt, general manager and head of Stena Bulk
Plans for the medium term include
both shipping and
market as well as to local competence.”
Singapore, is to leave his post in the Lion
downstream/storage,”
strengthening the company’s position in
Republic after 6.5 years to go back to
says Fearn, adding:
the forest products market.
headquarters in Gothenburg in Sweden.
Masterbulk owns 20 open hatch gantry
“We are looking to
Lewenhaupt, a well known face among
build with all sectors of the LPG shipping
crane-equipped vessels, 16 of which are
Singapore shipowners, will take on a
market.”
technically managed through its own
senior marketing and communications
shipmanagement activity in Singapore,
role within the group.
“The LPG market is in a state of revolution,” Fearn says confidently. “New
and four of which are managed through
As a replacement Stena has hired
supply is constantly being discovered
Westfal-Larsen Management in Bergen.
Nicolas Duran, former head of sale and
On the markets, Scandinavian Fisher is
most notably in the US with its huge shale
July 1
purchase for Fearnleys Singapore.
Board exodus at First Ship Lease including Philip Clausius
4
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Pavilion Energy forms Pavilion Gas to handle downstream ops in Singapore www.seashipnews.com 19
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Offshore
Red hot Southeast Asia remains one of the fastest growing places for offshore operators. SeaShip News prides itself on its access to leading players in the sector, as witnessed over the next couple of pages
S
tock exchange announcements are
and the subsea sector described by many
testament to the booming oil and gas
as hot.”
scene in the region, with not a day
Setting his sights high, Marco Polo
in Malaysia, Vietnam and Myanmar.
Back of the net for Chellsea
going by without some big new deal signed
Marine’s ceo has outlined plans to become
Chellsea, one of Singapore’s newer
or local offshore players celebrating
a “significant” group in offshore oil and
entrants into the offshore support vessel
record results.
gas marine logistics and support in the
(OSV) scene, is undergoing a period
region.
of significant expansion. Part of the
The region is one of the hottest for offshore developments in the world.
Kishinchand Chellaram (KC Group)
What’s more, Sean
Thailand and Malaysia are deemed
Lee says he has “plans
of shipping companies, Chellsea was
especially scorching areas for the
and the wherewithal”
set up by Gautam Chellaram two years
booming offshore support vessel (OSV)
to be one of the
ago as part of the group’s strategic
market, says one of the region’s top
larger offshore
diversification, with, he says, modestly, “a
brokers. Mike Meade, ceo of Asia’s largest
support vessel (OSV)
blank piece of paper”. Said blank piece of
independent offshore brokerage, M3
owner-operators in
paper has since transformed into a fleet
Marine, reckons the capital expenditure
Indonesia, specifically in the mid-sized
on a rapid rise. “Our focus is on building
for exploration and production (E&P) in
anchor handling tug supply vessel (AHTS)
the infrastructure,” says Chellaram.
Asia will grow by 53% between 2013 and
segment where he says his company has
2017, with an “above average spend” in
the “early-mover advantage”.
India, Malaysia and Indonesia.
The Chellarams traditionally have
Marco Polo Marine has 11 sets of
focused on dry bulk
tugs and barges and four OSVs while
via Hong Kong’s KC
across the board,” he says, “with notably
its Indonesian subsidiary, PT Pelayaran
Maritime, but saw
jack up utilisation - and rates - increasing
Nasional Bina Buana Raya Tbk (PT BBR)
the coming offshore
has 35 tugs, 32 barges, one self-propelled
explosion and bought
barge and three OSVs. PT BBR listed on
a platform supply vessel in 2011, kicking
January 9 this year.
off new firm Chellsea. A sister ship was
“We are seeing an increase in activity
With regard to ship chartering, the ceo says Marco Polo Marine will still be active
quality”, stresses Chellaram, and aimed at
in Asian and Australasian waters including
the North Sea market.
Thailand and Australia – “our bread and butter” – as well as exploring new projects
July
added last year. Both ships are “high
“The strategy for Chellsea in ordering these vessels,” says Chellaram, “is to order
Keppel management succession announced Former NOL man Lim Boon Heng appointed Temasek chair
24
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Barge capsizes, eight dead Court gives Sembcorp Marine control of PPL Shipyard board
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LON DON • S INGA P ORE • VANCOU VER
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Offshore vessels operating around the world. “We are seeing an increase in demand for our fleet and increasing day rates and utilization,” says the new ceo. Finally, in our offshore roundup we high spec and build quality vessels, with
Making headlines
come to Nordic Maritime, one of myriad
a focus on winning long-term business.
In the news more
Scandinavian shipping companies that call
There is no compromise in quality, which
than most this year
Singapore home. The offshore specialist
is what will win us long-term business with
on our site has been
is increasingly carving a niche out of
oil majors.”
Singapore’s offshore
Indonesia to cement its strong Southeast
contractor Otto Marine,
Asian business.
The Chellarams would do well to take
for better and for
heed of the thoughts
worse. Garrick Stanley
operates seven vessels – both owned and
of Indonesian
has been in the role of group ceo for just
under third party management. The fleet
national Rony
over four months now trying to continue the
is made up of five seismic vessels and two
Sudjaka, the chairman
process of making the firm more profitable
survey/chase support vessels.
and md of Singapore-
with an eye to increasing the company’s
based OSV specialist
fleet of offshore support vessels.
Founded in 1999, Nordic Maritime now
vessel under construction for delivery
Stanley joined Otto subsidiary Go
Pacific Richfield Marine and arguably the
There’s also a DP2 multipurpose supply late this year plus two DP2 400-men
man with the longest and broadest OSV
Marine Group back in 2007 as managing
accommodation/construction vessels
experience in the world.
director and has over 18 years experience
coming into the market next year.
Wearing a trademark cap Sudjarka says
in the industry.
Also of interest
The shipyard has been through a “cost
of the firm that he founded in 1989 that
being built is a
while there is plenty more competition
cutting and efficiency consolidation stage
catamaran hybrid
in his sector all of a sudden he is not
whereby fats are trimmed and resources
design under
worried as the ships he builds and owns
redeployed,” Garrick says. Nevertheless, the
construction for
are “higher class” with big engines and
upshot is that the yard is now ready to take
seismic support
more back up systems. Sudjaka has a long
on new projects, it bagged its first orders
operations which is
history of building OSVs, but had quit
for two years towards the beginning of the
due out in the third quarter of next year.
the practice for a number of years before
year, for instance, and has received further
“This is an exciting project which can be
returning to it in 2008, when he found he
deals since.
very interesting for the Southeast Asian
was unable to get ships built at other yards
Garrick is keen to portray the group’s
market with a low fuel consumption and
because they were so busy. He made the
full range of offerings beyond just the
high functionality to support the seismic
decision to rent a yard in Singapore and
shipyard.
survey vessels,” claims Kjell Gauksheim,
“The company has definitely developed
started churning out high spec ships.
into a marine services company with a
Sudjaka now owns 55 ships. His shipyard has one dock and is able to build
shipyard,” he stresses.
Sudjaka’s father worked in Hong Kong
Gauksheim, who joined Nordic Maritime in 2006, says the plan going forward is
“Our shipping business has now
eight ships every 18 months.
Nordic Maritime’s ceo.
to grow the company’s seismic and DP
refocused to renew, expand and upgrade
accommodation fleets.
at the old Taikoo Shipyard from 1926,
our own fleet whilst the shipyard increases
before moving back to Indonesia to do
our offshore fabrication capabilities and
is already facing an overcapacity and
contracting work. Sudjaka himself, now
ship repair,” Garrick explains.
supply,” he says, concluding: “However, we
77, has been in the OSV business now for
are very focused on our two segments and
dominated from Otto Marine’s fleet of 63
more than half a century.
AUGUST
have strong belief in these.”
Yangzijiang Shipbuilding first company to launch dual RMB trading at SGX Garrick Stanley new ceo of Otto Marine
2 1
Group revenues are currently
“For certain OSV vessels the market
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Swiber completes debut Singapore dollar sukuk
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New Entrants
Making the cut SeaShip News checks out who has made a splash in the Lion Republic this year
S
ingapore plays home to arguably
to handle various divisions of the Ofer
of the region’s canniest shipping players,
more senior positions in shipping
shipping empire, including overseeing the
former Pacific Basin boss, Chris Buttery,
than anywhere else on Earth. Its
existing Tanker Pacific fleet along with
who in November became chairman of the
business friendly, incentivised maritime
ships transferred from Zodiac.
company. In May, Epic appointed shipping
environment sees business class
Epic gas creation
industry veteran Lars Vang Christensen as
planeloads regularly touching down to set up shop in the Lion Republic.
The Lion Republic has a new gas carrier operator following the merger this January
MOL bolsters presence
was in the middle of the year when Ken
of Epic Shipping Holdings and Pantheon.
Employing more and more people in
Cambie, former chief financial officer
The new creation, Epic Pantheon
Singapore is one of the world’s largest
of Hong Kong’s OOCL, joined Quantum
International Gas Shipping, has, including
shipowners, Japan’s Mitsui OSK Lines.
Pacific Shipping Services as finance
vessels on order, a very rapidly built up
chief. Quantum Pacific is a new maritime
fleet of 31 ships.
Among the highest profile switches
venture created by Israel’s richest man,
Speaking on the occasion of MOL’s 129th anniversary in April, the president
It has significant new backers
of the Japanese line, Koichi Muto, was
Idan Offer, headquartered in Raffles Place
including Jeffries Capital Partners, DVB
fulsome in his praise of business in
in the heart of Singapore.
Bank and Diamantis Pateras Maritime. The
Singapore.
Quantum Pacific has been formed
AUGUST
company also has investment from one
In January 2013, MOL transferred its
Alan Hatton appointed head of FSL Trust PM Lee Hsien Loong lays out future port masterplan
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Haze warning returns to Singapore
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its new ceo.
www.seashipnews.com
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Russian jailed in latest bunker scandal Sembcorp Marine signs MoU for possible Saudi yard
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New Entrants dry bulkers to Singapore, a place Muto
Maersk has around 120 ships under the
customers and clients,” Baardensen tells
described as “a key hub of customers and
Singapore flag, the most after 180 in
SeaShip News.
information”.
Denmark.
“The move to Singapore has restored
Most of Maersk Line’s large orderbook
Crowley’s local solutions
cost competitiveness to the dry bulker
of newbuilds are set to fly the Singapore
The solutions group of America’s Crowley
fleet, which had been operating at a loss,
flag, according to Thomas Knudsen,
Maritime Corp is opening a project
laying a strong foundation for restoring
president of Maersk Line Asia Pacific.
management office in Singapore and
profitability,” Muto said.
building two new heavylift deck cargo
“There’s a maritime cluster around Singapore where you have access to
barges for dedicated use in the region.
“We will accelerate business expansion
pretty much all the different aspects of
The company also has an option for the
from our hub in Singapore through
shipping,” Knudsen told Bloomberg. “The
construction of two additional barges.
business reforms designed to capture
last five years we have really cleaned up
“This move not only allows us to
growth primarily in emerging markets.”
to concentrate on fewer flags to get the
broaden our geographical reach, but
At a cocktail reception it organised
Looking ahead, the MOL boss added:
economy of scale. You can definitely get
will also allow for more efficient turnkey
in November, MOL said it was likely to
lower cost if you go to Panama or Liberia,
solutions within the areas in which our
transfer a significant tranche of its tanker
but we feel that Singapore is a good
customers are focused,” says Craig
fleet to Singapore too.
combination of cost and quality.”
Tornga, Crowley’s vice president of
Maersk, Singapore’s largest owner
Grieg Star in the ascendant
solutions. “It is also important for us to be
Grieg Star is part of the privately owned
growth with dedicated equipment, which is
A.P. Moller-Maersk, famous
Grieg Group and is a fully integrated
why we are investing in the construction
for its containerline switching
shipping company and owner of one of
of two new barges for the region.”
able to support the operation and market
ports from Singapore to
the world’s largest open hatch fleets. On
Malaysia over a decade ago, is
July 1 the firm opened a branch office,
Rickmers goes it alone
already the largest shipowner
Grieg Star Shipping Singapore, headed up
At the start of the year Rickmers-Linie
by fleet size in the Lion Republic,
by Audun Baardensen.
established a new company – Rickmers-
and is set to get a whole lot
In addition to operating one of the
Linie (Singapore) – to strengthen its
bigger here.
largest open hatch fleets in the world,
presence in Southeast Asia. The new
Grieg Star also operates about 15 - 20
company, which has taken over all
geared bulk carriers in the supramax
responsibilities for Rickmers-Linie’s
segment through Grieg Star Bulk.
activities from its former agents, Horizon
Singapore is now the company’s biggest base outside its Danish headquarters. According to Bloomberg,
Shipping, is operating out of offices co-
Grieg Star Shipping Singapore is the company’s branch office and “lengthened
located with Rickmers Shipmanagement at
arm”, according to Baardensen, in
11 Keppel Road. Rickmers-Linie’s ceo is
Southeast Asia, carrying out all kinds of
the former head of Neptune Orient Lines,
marketing, operational and commercial
Ron Widdows.
services.
Wallem takes aim
“We intend to establish
Leading Hong Kong shipmanager Wallem
ourselves in Southeast Asia
set up a new shipmanagement operation
by keeping in close touch with existing
in Singapore that complements its long
and new
standing ship agency business and the recently formed NW Ship Management company. “This will double the size of
SEPTEMBER
BW Gas announces Oslo listing intentions
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Australian syndicate in takeover bid for Miclyn Express Offshore. Masterbulk appoints Nicholas Fisher as ceo
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www.seashipnews.com 25
- a solid and dynamic partner
Try us
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Our new vessels: 50.000 DWT with 4 x 75 mt cranes, combinable to 150 mt with automatic rotating control.
griegstar.com
New Entrants Wallem’s business in Singapore during
has created a joint venture with Raffles
Service providers
2013 and will be adding many new jobs to
Shipping Projects forming Westshore
A leading UK private maritime security
the local maritime sector,” a spokesperson
Raffles. The operation is headed up by
company (PMSC) that has set up in the
in Hong Kong said.
Norwegian national Alexander Pettersson.
Lion Republic tells SeaShip News that
The new shipmanagement operation
Initially Westshore Raffles’ focus will
shipowners in the region need to watch
commenced operation in April with all
centre around sale and purchase and
out for myriad firms who are charging
Wallem businesses in Singapore moving
newbuildings. Eventually chartering will
incorrectly for their protection services.
into one office in Alexandra Road.
also be included. Westshore already has
Freddie Hall, who relocated in April
Wallem has had a presence in
as business development manager for
offices in Norway and Brazil. “One of the main reasons for this
REDfour Maritime Security Solutions in
a leading ship agency and logistics
step was to provide the link between
Singapore, warns: “Reputable PMSCs are
company.
Asian shipbuilders and investors and the
aware of the need to limit costs and will
abundance of activity in Brazilian waters,”
work with clients to achieve this. However,
Singapore for more than 50 years as
Offshore developments
comments Sølve Høyrem, Westshore’s
it’s important to keep in mind that there
In March Halliburton opened its newly
managing director. “Great synergies can
are some providers that are quoting
constructed Completion Technology and
be seen between these two markets. In
unsustainably low in order to win transits
Manufacturing Center in Jurong.
addition to this the offshore market has
and it’s these, less reputable companies that can cause problems.”
“Halliburton is the leading supplier of
become more global and competitive than
completion products and services globally,
it was 12 years ago. This has being clearly
On the rationale to set up an office in
and the Singapore facility is a flagship for
demonstrated by Asian shipyards that are
Singapore at Suntec City to go alongside
our Completion Tools manufacturing in
now in a position to actively compete with
REDfour’s hq in London and its Sri
the Eastern Hemisphere,” says Dave Lesar,
European yards on most levels."
Lankan outpost, Hall notes the “seeping
Halliburton chairman, president and ceo. The new state-of-the-art facility is
Redolent of the booming offshore scene in the region Australia’s Energy
migration” of shipmanagement from the UK towards Asia.
located on about 43 acres in Jurong
Human Resources formed this June Energy
Industrial Park and includes more than
HR Asia Pacific, a joint venture with the
the world’s largest paints and coatings
500,000 sq ft of manufacturing and
M3 Marine Group, based in Singapore.
company, officially opened its new
administrative space.
International Paint, part of AkzoNobel,
global marine coatings headquarters in
Australia’s Toll Group opened its
Singapore this February.
redeveloped S$300m Offshore Petroleum
Elsewhere, Martek Marine ceo Paul
Facility in May, describing it as “an
Luen outlined growth plans including a
effective interface between air, land and
new office in Singapore. The tech firm
sea for companies in the marine, offshore,
plans to double in size over the next
oil and gas industry”.
three years with a key component being
Meanwhile, the MacArtney Underwater
the expansion of Martek in Singapore by
Technology Group has opened a new
moving into new, larger premises.
group subsidiary in Singapore.
Geir Sjurseth, managing director
MacArtney Singapore offers local
Energy HR Australia, founded by
access to extensive stock and capacity,
Sarah-Jeanne Fraser in 2008, has come
moved to head up the bank’s Singapore
giving prompt delivery to underwater
up with a “unique fee structure and
operations this year, is bullish on offshore
technology customers in Singapore,
business model”, the company said in a
as a whole.
Malaysia, Thailand, Cambodia, Vietnam,
release, which has proven popular across
Brunei, Indonesia and the Philippines.
Australia. The same model is now coming
drilling and floating production see good
to Southeast Asia.
prospects,” he tells SeaShip News.
Norwegian offshore broker Westshore
October 2
4
“In particular subsea and construction,
Keppel Offshore & Marine announces plans for $400m Mexican jv yard KS Energy forms Mexican jv
Vallianz Holdings ties up huge $334m Saudi deal
1
of DVB bank’s offshore division, who
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Canada’s largest agribusiness Richardson International sets up in Singapore DNV Petroleum Services taken over by European private equity firm IK Investment Partners
15 www.seashipnews.com 27
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The only maritime and offshore news site dedicated to Southeast Asia www.seashipnews.com @SeaShipNews
Maritime CEO Ad.indd 2
13/8/13 6:41 PM
New Entrants “It has become evident over the years
that Singapore is the best location for
global trade. These investments represent a
that the offshore industry is driven by very
the domicile. Since more than 70% of
continuation of our long-term commitment
different demand drivers versus traditional
MacGregor’s sales are already generated
to Singapore, elevating its significance as
sea going shipping transportation,”
in Asia Pacific, we feel that establishing
an integral part of ABS’ future.”
Sjurseth says, adding that the size of DVB’s
our domicile in Singapore would
offshore business has grown relatively
represent a natural development for our
Innovation and Research Center (SIRC).
more than conventional shipping, thus
operations,” comments Mikael Mäkinen,
SIRC will expand R&D activity to include
justifying a separate division. The bank’s
president of MacGregor.
marine operations and performance
offshore division caters to the OSV market,
ABS will create its Singapore
Cargotec is proceeding with listing
management.
subsea, construction vessels, seismic
its marine division on the Singapore
operators, accommodation units, drilling
Exchange. Moreover, it has just
Lloyd’s (GL) maritime engineering and
and floating production units.
announced that it will look to list
consultancy subsidiary, announced the
MacGregor, best known for its ship
unveiling of its ECO Research Centre
in the lubes industry made a return to
cranes, in Singapore too, subject to market
in Singapore this May. The centre aims
the sector this year. Caroline Huot’s work
conditions.
to conduct research to strengthen
One of the region’s best-known names
has seen her head up lube sales for top
Meanwhile, FutureShip, Germanischer
In January Cargotec tapped Finnair for
FutureShip’s energy efficiency solutions
names such as Total and Gulf Oil Marine.
its new ceo to replace Mikael Maekinen
Now, after a stint in Africa with UBI Oil,
who moved to Singapore in October last
Finally, there’s news that Singapore-
she has returned to Asia, to Singapore
year to lead the company’s Asian listing
headquartered DNV Petroleum Services
where bunkering giant KPI Bridge Oil has
likely to take place next year.
(DNVPS) has been taken over by European
tasked her with setting up a global lubes operation.
Another leading crane manufacturer, Austria’s Palfinger, is raising its presence
“Lubes require a different type of relationship with customers as it’s a much
in Singapore.
for its Asian clients.
private equity firm IK Investment Partners. Founded by Norwegian classification society DNV in 1981, DNVPS is a global
“We are currently working on a new
provider of fuel management services for
longer term business,” Huot tells SeaShip
Singapore setup which will cover the
the maritime and power sector. DNVPS,
News. She will be bringing in a specialised
whole Asia Pacific,” Karl Oberreiter, head
this May, set up a dedicated laboratory to
team as well as using KPI’s existing
of Palfinger Marine, tells SeaShip News.
focus on R&D and specialised tests.
network. Similar to what she created at Gulf
Class growth
Oil Marine Huot is determined to build a
Class society ABS is upping
global network offering 24/7 service.
investments in Singapore
Lubes are the fourth biggest expense
that will strengthen engineering and
for owners after bunkers, crew and
survey capabilities and lay the foundation
insurance, Huot claims.
for strategic global initiatives. ABS is expanding its operational workforce,
Lifting up
increasing research and development
In a big shift for one of Europe’s best
(R&D) efforts and establishing a Global
known marine equipment manufacturers
Performance Center in Singapore.
MacGregor moved to Singapore. The
“ABS has worked alongside industry,
subsidiary of Finland’s Cargotec is
academia and government in Singapore
increasingly focused on the Lion
for more than 50 years,” says ABS
Republic.
president and ceo Christopher Wiernicki.
“Due to its closeness to our Asian customers and partners, we are confident
October
“We are moving in step with Singapore as it continues to expand its presence in
Miclyn Express Offshore buys 50% of the shares in Thailand’s Uniwise Towage from Svitzer Asia
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NTU announces it is establishing an advanced maritime energy test facility
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www.seashipnews.com 29
When four cruise ships had to berth in Singapore in a single day. Wallem delivered.
Delivering Maritime Solutions www.wallem.com
Shipmanagement
Cost issues Managing ships out of the Lion Republic is increasingly tricky from a profit point of view
S
hipmanagement, a fine margins game at the best of times, is being squeezed ever more in Singapore. That has not stopped the republic
seeing the number of shipmanagers increase, but it certainly has many on edge. The fact is; Singapore is expensive. Office space, for instance, in Singapore’s central business district is the eighth most expensive in the world and nearly as costly as midtown Manhattan. And there is likely no let up here with Macquarie Research forecasting Grade A rent to rise 5% next year to S$10 per sq ft per month. Similarly salaries are a major issue. Pay for
SKY HIGH Singapore office rental prices are now on a par with Manhattan
well qualified shipping practitioners now easily surpasses Hong Kong and most other Asian cities. Once again, there’s bad news on this front too with two separate recent surveys suggesting the average Singapore salary will rise by 4.5% next year. Phil Parry, chairman of UK maritime recruitment
The intensifying scramble for a limited supply of local talent is a headache
firm Spinnaker, says: “Singapore has become a
like India or the Philippines. The intensifying
victim of its own success in that the huge growth in
scramble for a limited supply of local talent is also
the number of shipping employers there has led to
a headache for managers, he says, something that
a war for talent.”
has not been helped by a slight tightening in the
Summing up the republic’s HR issues, Parry
country’s immigration policy.
says: “Singapore’s problem is that with so many
For Simon Doughty, the head of Hong Kong’s
newly landed companies, demand for locals or
Wallem Group, competition is the biggest challenge
foreigners with existing permanent residence
in Singapore, a country Wallem has significantly
outstrips supply. Something has to give and that’s
bolstered its presence in this year.
either in the way of salary inflation or conceding
“There are many shipmanagement companies in
that sometimes it’s necessary to look overseas for staff.”
the island vying for the same business,” he says. Wallem’s head in Singapore, shipmanagement
Manish Singh, chairman of consultancy
veteran Deepak Honawar, says the cost of living
Ideocean and former high flier with V.Ships, says
in the republic is now higher than other maritime
the rapid escalation in costs means managers must
cities such as Hong Kong, Hamburg and Athens.
seek back office solutions elsewhere in places
November 1
Nevertheless, new entrants continue to roll in.
Pacific Basin founders Chris Buttery and Paul Over join Epic Shipping Tan Boy Tee buys into Viking Offshore and Marine PSA buys a stake in the Chinese port of Lianyungang
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Sembcorp Marine officially opens first phase of its huge 206 ha yard in Tuas Baltic Exchange holds first ever board meeting outside of the UK in Singapore www.seashipnews.com 31
Bunkering
Mixed bag A tricky year for many has seen the number of bunker suppliers contract, writes Katherine Si
S
ingapore, the world’s largest bunkering hub, has seen the sector contract considerably this year. The
number of companies now licenced by the Maritime and Port Authority of Singapore (MPA) has slipped by around 10 this year
Many bunker traders in Singapore are seeking alternative places to carry out their business
to just over 70 bunker suppliers. This was a result of certain firms failing to adhere
so low, and Singapore land prices so
to the MPA’s terms and conditions while
astronomical many are choosing storage
strong bunker trading team based out of
others simply did not renew their licence
at sea while others are looking at Malaysia
its global headquarters in Singapore. The
as competition and operating conditions
to set up shop.
company is also launching a new office in
have been fierce of late.
However, there have been others who
Due to slack demand and extortionate
Dubai to serve its customers in the Middle
have strengthened their position in the
East with plans for further expansion in
storage prices many bunker traders in
Lion Republic this year. A good example is
Asia and Europe.
Singapore are seeking alternative places
Dynamic Oil Trading, the lube and bunker
to carry out their business.
firm, which celebrated its first anniversary
Singapore this year include Pacific
this October.
Bunkering and Norwegian Oil Trading
Both BP and Swiss trader Gunvor Group are giving up their fuel oil storage
In the 12 months since its
space at the giant 2008-opened Universal
establishment, Dynamic Oil Trading has
Terminal in Singapore. With VLCC rates
expanded rapidly and now has a ten-
New bunker players that came to
(NOT), the latter majority owned by Hesnes Holding and NYK Trading Corporation.
LNG plans of Singapore (MPA) and its appointed consultant, Lloyd’s Register, have
“There is an increasing need for the
completed a study on the technical
shipping industry to look at alternative
standards and procedures for LNG
sources of fuel and LNG is a promising
bunkering in the port of Singapore.
option that we should consider. The
Following the completion of the
completion of the study is an important
study, MPA will be organising industry
milestone in the development of LNG
Singapore has made progress in the
consultation sessions to share the
bunkering in the port of Singapore and
development of the practical operational
results of the study with the maritime
we would like to share this significant
procedures and standards for LNG
industry and seek their feedback.
progress with the industry,” said Captain
bunkering operations.
With the industry feedback, MPA will
M Segar, MPA’s assistant chief executive
subsequently finalise the LNG bunkering
(operations).
The Maritime and Port Authority
November
Pavilion Energy spending $1.3bn for a 20% stake in three blocks off Tanzania Pacific Radiance IPO nets $154.7m
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standards for the port of Singapore.
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Kreuz Holdings and a subsidiary of the Headland Private Equity Fund conclude a management-led leveraged buyout of Kreuz Holdings for S$446m www.seashipnews.com
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For more information, please visit: Anastasia Emelianova T: +44 207 596 5011 E: transport@ite-events.com