SMP June July 2013

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CONTENT

Contents

12

31

19 Interview 8 ‘We Understand Risk’

- Chitta Dash, Marine Manager - South West Asia Lloyd’s Register Asia Features 12 ‘Green’ Ports: A Need of the Hour

- G S Rathod 17 Protecting Our Seas

- Capt Sekhar

Marine Archeology

20 ILO/IMO

Framework Examination for Seafarer - Dr Suresh N Idnani

on

Medical

32 Great Lakes Shipwreck Found 34 News India

23 Ignition of LNG in India

41 News Foreign

- Arvind Mahajan 26 Freight Watch – May to June 2013 - Niteen M Jain and Nazir Moulvi

47 Marine Tech 50 Book Review

News Feature 30 Shipping & Port Sector 2013 O ver view

- Rakesh Roy 31 Mumbai

Coast: Abandoned Ships - Rakesh Roy

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A

Safe

Haven

for

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INTERVIEW

‘We Understand Risk’ Chitta Dash , a DMET (now MERI) 1980 graduate, is at the helm of Lloyd’s Register’s South West Asia Marine business. Subsequent to taking over the leadership, he has developed a highly competent team, trained to discharge their duties as responsible Class/RO surveyors and provide prompt and effective technical solutions to the shipping clients in the area. Dash talks to Supriya Oundhakar & Rakesh Roy about the risk management, eco-friendly ship, green passport, measures to be taken for energy efficiency and many more. Excerpts:

Can you please brief us about risk management in Shipping and Marine sector? What is the role of Lloyd Register in mitigating these risks? Risk management is focused on protecting human life, assets (ships) and the marine environment. Lloyd’s Register is a leading provider of marine classification and certification services around the world, helping ensure that internationally recognised safety and environmental standards are maintained at every stage of a ship’s life. Please comment on LR’s technical expertise in meeting better performance of ships? Our position is one of providing the best independent technical and operational insight to enable owners, operators, designers and builders to achieve the highest possible levels of performance in safety and make the best commercial decisions in confidence. We understand risk. We are helping owners get to a position where they can decide whether it makes commercial sense. The same goes for other fuels, efficiency measures and for scrubbers. It is unlikely that many deep sea ships will be using gas by 2020 so the industry is either looking at low sulphur fuel or exhaust gas cleaning to comply with anticipated global regulatory requirements. What are the standards for certification of new ecofriendly ship based on IMO standards?

Chitta Dash Marine Manager - South West Asia Lloyd’s Register Asia 8 |

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As we can see, some shipyards and owners are talking of these current generation ships as ‘eco’ to differentiate their product or services. Eco might just as much mean


INTERVIEW where SOx and NOx limits can be even lower. North America, Caribbean and the Baltic are such areas. So, it is up to a country or group of countries to consider the environmental and human health benefits against the economic and societal impacts (potential loss of ship traffic) if they wish to further reduce local emissions from shipping. Please appraise us Energy Efficiency Design Index (EEDI) of IMO regulations in building ships?

‘economical’ as ‘environmental’. Indeed, the focus has switched to the latter. In some ways, there is nothing new in this label. For example, Tsuneishi have been marketing the Tsuneishi Economical Standard Ship (TESS) since the early 1980s. Obviously, the ships ordered recently have yet to prove themselves. Time will tell what their real fuel consumption is when they are operating. But we anticipate that substantial efficiencies will be realised. The bottom line is that it’s all about the bottom line. More economical ships are being demanded and shipyards are responding to that demand. Owners have been seeing recent cyclically low prices as an opportunity. As long as energy prices remain high and earnings remain low, efficiency will be the number one priority. Even if freight rates rise considerably, it is highly likely that more economical ships will continue to be in demand. Marine vessels are responsible for emission of 3 per cent of world’s greenhouse gases. What measures should be taken for cutting emissions from ships and how can the situation be improved? It is true that marine emissions requirements are less strict as compared to land-based or automotive industries. On the other hand, ships operate globally and it is much more complicated to regulate and apply a common standard similar to cars or power stations. Emissions from ships are regulated by the Marpol Convention and further reductions are scheduled over the coming years. This will require investment in technology and/or use of cleaner fuels – either way a high cost to the industry. Within the same regulations, countries can designate special areas, so called emission control areas (ECAs),

The EEDI is intended to incentivise improvements in design efficiency of ships. This is through regulatory limits for efficiency, which will become increasingly more stringent over time (much like the phased approach for NOx regulations). There are a number of options for improving efficiency and many shipbuilders, consultancies and technology companies are also looking at technology solutions in this regard. These range from optimising hull form, bulbous bow modification, machinery optimisation and use of alternative fuels such as LNG or biofuels. New and emerging technologies include using wind power in kites, sails, flettner rotors to underwater air-hull lubrication ‘air-bubbler’ systems to reduce friction. What is the core expertise provided by LR in fuel technology to improve sustainability of marine activity? Lloyd’s Register provides core understanding of the risks and realities involved in any new technology to increase fuel efficiency and we have a wide range of expertise available to provide in-depth review of the potential for future fuels. Please brief about Indian scenario in LNG ship building? LNG is becoming increasingly available. The technology is understood and can be applied. The big questions are over investment in infrastructure, which will also be related to the perceptions of future pricing of gas. What is the share of LR’s in LNG carriers in world? The top 5 classification societies at end of 2012 classed the following number of LNG ships: Classification Societies

LNG Ships

LR

119

ABS

80

BV

57

Class NK

55

DNV

53

(Source: IHS Fairplay )

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INTERVIEW What is Green Passport? The IMO’s voluntary Guidelines on Ship Recycling (2003) introduced the concept of a Green Passport Inventory, essentially an inventory of hazardous materials present in a ship’s structure, systems and equipment that may be hazardous to human health and the environment. The 2003 Guidelines have been effectively replaced by the Hong Kong Convention, which was adopted in 2009 but is yet to come into force. The Convention aims to improve standards of safety and reduce environmental pollution resulting from the recycling of ships and will require ships over 500 GT to maintain a hazardous materials inventory. The term Green Passport is no longer used by the IMO and is also being phased out by Lloyd’s Register – the inventory is now known as the Inventory of Hazardous Materials (IHM). Full details on the Inventory of Hazardous Materials can be found in the ‘Guidelines for the Development of the IHM’ (see MEPC.197(62)) which accompany the Convention. How will Green Passport help in dismantling of ships? A ship’s IHM is maintained throughout its life. Prior to recycling, details of additional hazards in stores and operationally generated wastes are added, and the document can be used to help an authorised recycling facility formulate a safe and environmentally sound, ship-specific recycling plan. Full details on the role and responsibilities of recycling facilities, and how the IHM plays a part, can be found in the Hong Kong Convention text, SR/CONF/45 (Regulations 5, and 8 to 25). What is the Indian ship breaking scenario in terms of IMO’s guidelines while dismantling a ship? Once the Hong Kong Convention comes into force each National Authority will be responsible for ensuring their ship recycling facilities operate in accordance with the Convention’s requirements. Therefore, if India ratifies the Convention, the competent authorities and recycling facilities will have to comply with SR/CONF/45 (Regulations 8 to 10, and 15 to 25). Is LR providing their solutions to any Indian shipping company? Some of the ways we have helped the industry globally, this year, include: technical consultancy on a variety of subjects, from lengthening container vessels to 10 |

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a risk assessment study on LNG terminals; highlevel guidance on LNG bunkering; energy efficiency optimisation using advanced CFD techniques; and approval of state-of-the-art offshore support vessel designs. Coming back to India specifics, we have provided the following solutions to the shipping industry: a) Trim Optimisation services for enhancing fuel efficiency to shipping companies; b) Hull structural analysis to shipyards towards optimisation of scantlings for the new building project; and c) Analysis and reduction of noise and vibration levels, for the new building projects. What are the LR’s future plans? Today, our technical expertise is meeting the demand for ships that are designed and operated to perform better in every way from the fuel they consume to the technologies and procedures they employ. Our new Global Technology Centres in Southampton and Singapore will ensure we stay at the forefront of new technology and assess the risk before it is applied to engineering solutions. A fundamental understanding of new technology is essential in solving the world’s technical challenges. Putting our practical experts next to university learning and research facilities will stimulate technical innovation. We want our new Global Technology Centres to lead the world in helping to develop the solutions that will support safer, cleaner, more efficient shipping and offshore activity. Earlier this year, we also released Global Marine Trends 2030, a report based on two years of research into the future of the maritime industries. The report indicates that 2030 could usher in a world where China would own a quarter of the merchant fleet. Almost half of offshore oil is taken from the deepest waters and there are 100 times as many offshore wind platforms. The tanker fleet grows the slowest of all the major ship-types and the number of containerships with a capacity that exceed 7,600 TEU grows three times faster than those below that threshold. We are sharing this cutting edge research to encourage a broader understanding of global issues that affect the marine industry and their impact in the form of key drivers and scenarios.



FEATURES

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FEATURES

October 2008 Pre 1989 trucks were banned from port service. January 2010

1989 to 1993 trucks were banned

January 2012

All trucks that did not meet 2007 federal emission standards were banned.

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FEATURES

Author: G S Rathod Dy Secretary Mumbai Port Trust

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ď ›FEATURESď ?

Protecting Our Seas Our large coastline demands of us to protect it in a pristine condition. At the very least, we must limit our environmental interaction to a level where nature can continuously heal itself. In a societal context this goes beyond good intentions and translates to how we govern ourselves. The canvas requires more detailing on framing regulations, protocols for permitting projects, compliance challenges, and many such factors.

E

IA (Environment Impact Assessment), in simple English, is a process of making a case for a new project by proving that the project impact is acceptably small on the specific environment. In principle, the current protocol and methodology to approve a project is very sound, asking all the right questions and insisting on substantiated answers to relevant questions. This EIA is typically prepared by the project proponent who has all the final details of the project, the construction details, dredging and reclamation plans, plant capacities, effluent discharges and in short knows the complete contours of the proposed development. In recent years, EIA consultants are vetted and approved by NABET to control the quality of the consultants and thereby the reports. Some of the important parts of such EIA are discussed below. Baseline Environmental Status Detailed marine ecological and environmental studies are carried out to establish the prevalent baseline status of

the subject environment. This usually involves primary ecological sampling and analysis by approved laboratories. This is supplemented with extensive secondary research of the earlier studies, besides proximity of sensitive ecosystems. Combine this with the knowledge of project area bathymetry, currents and a host of parameters on the physical, chemical and meteorological characteristics that make up the unique environmental profile of the location. An important part of the EIA is the study of all environmental interactions of the project with the specific environment. This interaction may be in the form of construction activities, reclamation, dumping the dredged material or effluent discharges. The dispersion pattern of this effluent is studied by numerical modeling of effluent trajectory to establish the project impact zone in various meteorological conditions. Nevertheless, there are established guidelines that must be followed to limit the effluent discharge levels i.e the temperature of the cooling water discharges of a coastal power plant must not exceed 7 deg C above the ambient waters. June - July 2013 |

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FEATURES Stopping a passing vessel on the coast to inspect its pollution response equipment is fraught with the danger of becoming an ‘international incident’ unless there is obvious evidence. To undertake this, a mature system of surveillance is required, with all- weather remote monitoring of pollution, ability to promptly analyse forensic evidence, vessel traffic monitoring system and the state’s will to prosecute.

Once the environmental interaction is detailed, its impact on this specific ecosystem is predicted over a short term and long term period. While this part is arguably a prediction by the EIA experts of the project proponent, it must stand scrutiny by a diverse team of highly qualified and experienced professionals deputed by the environmental department. It follows that if this impact is anything but insignificant, the project proponent has to show monitoring and mitigation plans, to the satisfaction of the authorities. Shipping - Accidental Pollution Pollution from shipping is an interesting sector, since it deals with pollution on your shores by vessel that are owned by foreign entities and not under your administrative control. Due to the nature of vessel ownership, registered in flags of convenience and owned by holding companies registered elsewhere, the ownership often cannot be traced easily. The country’s coastline suffers the consequences of pollution by vessels on ‘innocent passage’ on its coast, whose ownership thus lies elsewhere and no economic benefits accrues to the coastal state from bearing this risk. The large tankers passing by on the west Indian coast pose such huge risk from an accidental pollution without adding a single dollar to our economy. This risk is written unto our destiny by our geography. Perhaps we can compensate ourselves by commercially capitalising from this traffic like Singapore or Dubai has done, but that is another story for another day. Erica, Prestige, Braer or Exxon Valdez are all names of vessels that brought huge catastrophe to various coastlines, on their ‘innocent passage’. They all came without warning. The quality of tonnage and technology in navigation has continuously improved over the years, but ‘improved’ is a relative word. Traffic has increased multi-fold meanwhile. Major accidents have happened at regular intervals. The consequence score of a tanker breakup on the risk matrix is yet unacceptably high. To be fair, the world’s tanker fleet is practically converted to double hull, raising the threshold of when an accident will turn into a polluting incident. Port state control as a weapon to control the quality of tonnage can be exercised in port, but there is little practical control on the quality of tonnage passing few miles off the country’s coast. Stopping a passing vessel on the coast to inspect its pollution control equipment is fraught with the danger of becoming an 18 |

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‘international incident’ unless there is obvious evidence. To undertake this, a mature system of surveillance is required, with all- weather remote monitoring of pollution, ability to promptly analyse forensic evidence, vessel traffic monitoring system and the state’s will to prosecute. Marine accidental pollution has not found its way into the agenda of disaster management bodies. This is often debated by pollution control board (PCBs) analysing pollution risks from shipping. It will be good to differentiate the pre and post incident roles of these two organisations. PCBs control operational pollution of industries within their jurisdiction, perhaps even scrutinise the on-site and off-site emergency plans. A vessel accidentally polluting our coast does not lend itself to these controls. The design of the vessel follows the very international Solas convention and operational pollution conforms to Marpol, again a very international convention. Design and condition are inspected by international third party inspection agencies, acceptable to their respective flag states. The coastal state’s power to inspect a vessel in port for its compliance with these conventions is well established and usually done by the coastguard or maritime authorities in many countries. The PCBs usually do not wear these hats. However, a vessel flying a foreign flag does end up regularly on our shores in potentially polluting situations. While actual oil spill combat is done by specialist agencies and monitored by specialist regulators like coastguard, the resources for restoration of the coastline, the modalities for rehabilitation of communities, can do with some knowledge and competence. It is a fit case for the disaster management authority, which has expertise in post incident scenarios, to step in and shoulder some responsibility. This will be useful for many coastal district administrations, who may face such incidents. Another beneficial move is setting up Tier III response resource in India. This level of response is for a major pollution incident, where local or national resources are considered insufficient. Currently such equipment, usually bulky, must come from hubs like Singapore or P.Gulf. The logistical challenges in moving such resources in an emergency are too many. The country’s port sector and oil


FEATURES

and gas sector have grown enough and now have a size to viably support placing such resource inventories in India. Shipping - Operational Pollution The tankers coming from the east to load in Persian Gulf wash their tanks, settle these washings during the voyage and get ready to decant their tanks. These vessels need to decant these washings before entering Persian Gulf, which is a special areas as per Marpol annex I. Decanting these washings is a perfectly legitimate activity as per Marpol and this frees up revenue earning space of the tankers. Due to the geography of our country, this decanting happens when these vessels are passing off our coast. If these vessels are exceeding the permissible discharge limits, or walking the thin line between compliance and violation, they are fully confident that prosecution is a remote possibility, given the issues of real time surveillance, collection of forensic evidence and jurisdiction in international waters. Ballast water discharge is considered the most irreversible form of pollution. It transplants a completely foreign marine eco-system to be planted on the local marine environment. This is a major problem typical to ports where a lot of bulk exports happen and therefore most of the de-ballasting happens. Persian Gulf would see a lot of de-ballasting from loading tankers. The international shipping is grappling with ways to deal with this issue. Unlike fitting an additional GPS on a vessel, which is easier to retrofit, this issue requires fundamental changes in vessel’s ballast system design with little elbow room for retrofitting. It will take years to deal with the problem completely.

Pollution from Offshore Oil and Gas Facilities This sector poses huge potential risks as noticed from the Gulf of Mexico pollution incident. The challenge is source control, of a source which has far larger crude in store that few VLCCs put together. The positive note is that this sector has its ownership interests within the country and this makes the accountability simpler. It must be acknowledged that this sector is also a well regulated sector. The technological solutions that develop over the years can be implemented faster unlike the shipping industry which must patiently await the meeting of mind of the world’s seafaring nations. Another benefit is the oil properties are known, reporting lines are tested, spill trajectory model is ready barring last minute details of wind, location and quantum of spill. These factors will hasten the response, unlike the case of a VLCC breaking up on the coast where information is not available, be it pour point of the oil or the owners actual co-ordinates. It is interesting we are in an age where media is bringing the pollution incidents to our drawing rooms, traffic is better controlled, information and incident reports are widely distributed and debated, company’s brand value is closely safeguarded, technology is continuously improving and accountability is increasing. All these will serve to offset the risks from the ever increasing trade volumes. Author: Capt Sekhar Director AlphaMERS Pvt Ltd

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FEATURES

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FEATURES

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FEATURES Objectives of Medical Fitness Examination • To ensure the seafarer being examined is medically fit to perform his or her routine and emergency duties at sea. • To ensure seafarers are not suffering from any medical condition likely to be aggravated by service at sea, to render him/her unfit for service or to endanger the health of other persons on board. • To ensure any medical aliments found should be treated prior to returning to work at sea so that the full range of routine and emergency duties can be undertaken. • To ensure the seafarer should be assessed in relation to his/her routine and emergency duties and recommendations made on what the seafarer is able to do and whether any reasonable adjustment could enable him or her to work effectively. • Medical examination findings are used to decide whether to issue a medical certificate to a seafarer. • To ensure the seafarer is expected to be able to meet the minimum requirements for performing the routine and emergency duties specific to their post at sea safely and effectively during the period of validity of the medical certificate.

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FEATURES

Ignition of LNG in India India’s demand for energy is more reliable on imports to narrow the demand supply gap. Looking at eco-friendly nature of Liquefied Natural Gas (LNG), LNG imports will become a key part of our energy demands in future. Despite planning a number of LNG infrastructure facilities, the focus is on setting up Floating Storage Regasifiaction Units (FSRUs).

T

he Cabinet Committee for Economic Affairs (CCEA) recently approved the proposal to hike the natural gas price by approving the Rangarajan committee’s formula for gas pricing. The Rangarajan formula uses long-term and LNG import contracts as well as international trading benchmarks to arrive at a competitive price for India. The new price will apply uniformly to all producers, be it state-owned firms or private sector. Based on the price increase, it is expected that gas prices would be at the levels of about USD 8/ MMBtu which is a sharp increase from the prevailing price of USD 4.2 /MMBtu. The need for such a sharp increase was mainly felt owing to India’s burgeoning primary energy needs. The country’s primary energy consumption has more than doubled over the last two decades. India is currently the fourth largest consumer of energy in the world and is facing an increasing deficit scenario as its domestic energy resources are not able to keep pace with the growing demand.

The domestic gas output from the country’s largest gas fields in the east coast operated by Reliance Industries Limited (RIL) has declined rapidly to about 15 mmscmd from around 60 mmscmd in 2009-10. This has led to significant stranded gas based end-use capacity in the country. Thus, with decline of domestic production, the LNG imports are expected to further increase. According to Central Electricity Authority (CEA), the gas based power plants in India are operating at low plant load factor(s) of 30-35 per cent. Given this backdrop, the Government approved the gas price increase with the view of increasing investments domestic exploration and production in the country. It is also evident that given the demand –supply gap, there still would be a significant requirement of LNG imports even if the supply were to ramp up owing to increase in investments in the domestic fields. According to the working group report for XII five year plan, the dependence on LNG which is currently around 40 per cent is likely to grow to 55 per cent by 2017.

India Domestic Demand Supply for Gas LNG Imports in India India is facing significant shortage of domestic gas supply. In India, the natural gas production in 2012-13 was around 104 mmscmd, while LNG imports are estimated to be around 50 mmscmd. Some of the key importers during the year include Petronet LNG, GSPC, Reliance Industries and GAIL.

The planned LNG import infrastructure reflects the yawning deficit scenario being faced by India. The country has become the fifth largest importer of LNG after Japan, South Korea, the United Kingdom and Spain, with a 5.5 per cent share in LNG trade. Currently, the three RLNG

Indian Domestic Gas Demand (Projected) (in mmscmd)

Demand

Supply (Domestic Gas)

(Source: Report of the Rangarajan Committee on the PSC Mechanism in Petroleum Industry)

Source: KPMG Analysis, Analyst Reports

June - July 2013 |

| 23


FEATURES terminals operational in India are at Dahej, Hazira and Dabhol all at the west coast of India. Dabhol terminal (5 MTPA) is expected to operate at partial capacity of 1.5 MTPA for the initial period due to lack of breakwater facility at the terminals port. The graph below represents the proposed increase in regasification capacity from the land based RLNG terminals in India. Since land based terminals have a longer construction period and are capital intensive, a large number of players have proposed to set up Floating Storage and Regasification Units (FSRU) to meet the natural gas deficit. Some of the proposed FSRU projects are at Kakinada, Dighi Port, Pipavav, etc. Companies like GAIL, APGDC, Shell, GDF Suez, Reliance Power, HPCL, Swan Energy Ltd., H-Gas, etc. have shown keen interest in setting up FSRUs at various locations. All in all, several projects are either planned or expected to come up in the coming years. However, some of the key enablers that would enhance viability of such projects include: • End-user affordability • Adequacy of gas infrastructure • Enabling policy and regulatory support Affordability It will great if the power tariff from coal based stations in India is around ` 4-5.50/unit. This is expected to increase owing to increase in imports, pass through of the losses and rising costs suffered by distribution companies. However, despite the increase in tariff, the power distribution companies may not be in a position to afford LNG-based power for base load requirement as it evident in the Table below. Delivered Gas Price ($/MMBtu)

Power Price Power Price (` per unit) (USD per unit)

LNG Price Scenario 1

20

10.2

0.17

LNG Price Scenario 2

14

7.5

0.12

4.7

0.06

Domestic 8 Gas Block(s)

Industrial Commercial 6.7

9.2

Affordability for LNG USD/ 13 MMBtu

19

Affordability for LNG USD/ ~18 [50% Pooling with MMBtu Domestic Gas] Source: KPMG Analysis

For one of the states, the State Electricity Regulatory Commission has allowed the electricity distribution companies to implement Expensive Power Supply Scheme based on procurement of expensive power using RLNG from state Independent Power Producers (IPPs). Thus, consumers wishing to avail continuous round the clock supply will have to make applications indicating the electricity requirement and the load factor. The electricity distribution companies would procure the power from the IPPs and supply it to the consumers on “no profit-no loss basis”. The increase in domestic gas prices would reduce the difference in domestic gas based generation and LNG based generation thus encouraging few more states to enable such schemes. Thus, even at high prices LNG offtake can happen in sectors such as power, fertilizer if the domestic gas allocation is restricted to certain defined percentage of the plant requirements or if innovative policy interventions are used. Further if there is a specific policy encouraging gas for peak power generation the affordability is likely to be higher. The other gas consuming segment i.e Industries and City Gas have comparatively better affordability for LNG as the competing fuels are liquid fuels such as Furnace Oil, LPG etc the prices of which are linked to international prices. Given the rapidly changing global gas pricing dynamics, it would be equally important to have innovative price formulation and efficient sourcing of gas in order to increase LNG offtake in the Indian markets. Region

States with gas infrastructure

States without gas infrastructure

Western

Gujarat, Maharashtra

Goa

Northern

Delhi, UP, Rajasthan and Punjab, J&K,HP, Haryana Uttrakhand

Central

MP

Source: KPMG Analysis

However, if the high cost LNG were to be pooled with domestic gas, the affordability of end-consumers like power plants could increase to offtake LNG. Thus, as an example as indicated in the table below, if the industrial power tariff for a state is ` 6.7 / Kwh, the power plant would have an affordability of USD 13 per MMBtu for LNG. However, if 50 per cent domestic gas is available at an assumed price of USD 8/ MMBtu, the affordability for LNG increases to USD 18/MMBtu. 24 |

| June - July 2013

`/ KWh

Tariff range

Chhattisgarh

Southern

TN, AP

Kerala, Karnataka

Eastern

-

Bihar, West Bengal, Jharkhand, Orissa

North Eastern

Assam, Tripura

Meghalaya, Sikkim, Arunachal Pradesh, Manipur, Nagaland, Mizoram

Source: Working Group Report for 12th plan – Oil & Gas Industry


FEATURES The planned LNG import infrastructure reflects the yawning deficit scenario being faced by India. The country has become the fifth largest importer of LNG after Japan, South Korea, the United Kingdom and Spain, with a 5.5 per cent share in LNG trade. Currently, the three RLNG terminals operational in India are at Dahej, Hazira and Dabhol all at the west coast of India.

Adequacy of Gas Infrastructure In India, the present pipeline infrastructure is around 13,000 Kms with a total design capacity of around 334 mmscmd. The major pipeline capacity is confined to Northern and Western parts of the country. It may be pertinent to highlight that given the proposed increase in domestic prices to spur investments and planned RLNG infrastructure it is critical to implement the countrywide gas grid as envisaged. The proposed national grid would be essentially connecting many states that don’t have pipeline infrastructure. Though implementation of pipelines is typically assumed to be less intensive on time as compared to the implementation of RLNG infrastructure or development of wells, there have been case examples of extensive delays in laying pipeline infrastructure. Hence, there is a need to provide adequate thrust by the Government on pipeline infrastructure. A transparent mechanism that addresses the issues of right of way, land acquisition and other issues is required to be put-in place. An empowered coordinating mechanism at the Central Government level could help in faster execution of projects. On tariff determination, it is important that a level playing uniform methodology is followed. Any retrospective tariff implementation orders could send negative signals to investors and lead to suboptimal investments in the long run. Investment Particulars

XII Plan ( ` Billion)

LNG Terminals

312

Pipelines

439

CGD Infrastructure

403

Total Investment

1154

Source: Working Group Report for 12th plan – Oil & Gas Industry

Investment Outlay The total capital investments in the gas midstream and downstream sector for the XIIth five year plan has been summarised in the table below: With expected investments in the gas infrastructure facility of around USD 200 billion in the next five years, natural gas is poised to play an important role in the Indian energy mix. But, this will be a reality only if enabling policy and regulatory measures are in-place.

Hazira LNG Regasification Terminal

Summary In summary, given the demand supply scenario, LNG would have an important role to play in the Indian energy mix. Given the requirements, a number of LNG infrastructure facilities have been planned. There is an increased focus on floating storage regasification units (FSRU) as it takes less time for implementation as compared to land based terminal. The affordability of key consuming sectors especially power is on the rise and could afford LNG with innovative mechanisms in place. Thus, it is important to ensure a stable policy and regulatory regime to develop gas infrastructure throughout the country. Furthermore, gas sourcing at the appropriate price is the single most important factor that can decide the extent of LNG penetration in Indian markets. Author: Arvind Mahajan Par tner and National Head Energ y, Infrastructure & Government, KPMG (Contributions from Sanjay Sah, Director & Uday Alamuru, Manager, KPMG) June - July 2013 |

| 25


FEATURES

Freight Watch – May to June 2013 Amidst slowing growth, World Bank cut its forecast for the global economy for 2013 to 2.2 per cent compared with earlier forecast of 2.4 per cent, and slashed China’s growth forecast to 7.7 per cent compared with earlier estimate of 8.4 per cent.

1.25

50

1.2

45

1.15

40

1.1

35 VLCC supply V’s demand (LHS)

World Scale Points - Route TD3 30

3 6/

26

/2

01

3 6/

19

/2

01

3 01 /2 12 6/

6/

5/

20

13

3 5/

29

/2

01

3 01 5/

22

/2

01 5/

15

/2

13 20 8/ 5/

1/

20

13

3

1.05

5/

Worldscale Points

Supply V’s Demand*

Route TD3 freight rate and weekly supply Vs demand

Note: * Market in “oversupply“ mode when reading is excceds 1, vice-a-versa when below 1. Source: Bloomberg

C

harter rates of VLCC plying of route TD3 subtly rose on seasonal increase in demand. Daily charter index for route TD3 (from Ras Tanura in Saudi Arabia, the world’s biggest oil-export site to Chiba in Japan), one of the world’s busiest oil route and industry benchmark, opened the month of May 2013 flat at 32.5 Worldscale (WS) points. Uncertainty over the total cargo available for loading was one of the factors for flat start to the month. Given, the rise in charter index later in the month, the month’s opening eventually emerged as the periods (May-June 2013) low. WS points are a percentage of a nominal rate, or the flat rate, for over 3,20,000 specific routes. Flat rates for every voyage, quoted in USD per tonne, are revised annually by the Worldscale Association in London to reflect changing fuel costs, port tariffs and exchange rates. Notably, each flat rate assessment gives owners and oil companies a starting point for negotiating hire rates. After remaining flat in first week of May, charter rates rose on news that Organization of the Petroleum Exporting Countries (OPEC) crude production climbed in April to

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| June - July 2013

the highest level in five months, led by increased output by Saudi Arabia, the United Arab Emirates and Kuwait. The production increased to around 30.95 million barrels a day in April compared with 30.75 million barrels a month ago. The increase in output created additional demand for VLCCs to ferry oil. The rumours about China hiring vessels for ferrying oil for strategic reserves also helped in lifting the freight rates. Data from China customs showed crude oil imports into the country were highest in three months in April. The trade sources cited these increased imports were also due to refineries replenishing stockpiles. The diversion of VLCCs from Middle East to China route helped in reducing the glut in route TD3. As a result, earnings for VLCCs on the benchmark TD3 route rose to USD10,369 a day, the first five-figure return since January 23, 2013. According to Frontline Ltd., the world’s largest tanker operator its VLCCs need a daily return of $25,500 to break even. However, by mid-May freight rate for route TD3 went flat and remained so as reports suggested China’s biggest refineries marginally reduced their average operating rate because of maintenance.


FEATURES Shipping Capacity Statistics Particular

Jun-13

May-13

MoM % Change

Jun-12

YoY % Change

No of Ships in service

2,311

2,311

0.0%

2,255.00

2.5%

DWT Weight in ‘000 tonnes’

373,857

373,490

0.1%

358,106

4.4%

No of new ship orders

154

149

3.4%

149.00

3.4%

No of ships under construction

36

37

-2.7%

89.00

-59.6%

Order book as DWT %

10.13

10.3

-1.7%

14.54

-30.3%

No of Ships broken

7

15

-53.3%

6.00

16.7%

No. of VLCCs sailing with cargo

425

425

0.0%

407.00

4.4%

No. of VLCCs anchored

145

145

0.0%

133.00

9.0%

Avg. speed of VLCCs in knots (Excl. Anchored) 8.92

8.92

0.0%

9.52

-6.3%

Persian Gulf VLCCs Supply vs. Demand

1.17

1.125

4.0%

1.14

2.6%

Global

103,812

103,812

0.0%

68,556

51.4%

Middle East Gulf

29,957

29,957

0.0%

10,616

182.2%

India

3,988

3,988

0.0%

1,916

108.2%

Oil - floating storage (1000 barrels)

Note: Supply – demand is 1, where both are equal; 1.1 signifies 10% oversupply whereas 0.9 means 10% deficit Source: Bloomberg

Later, as the refineries from Asia were returning to production from schedule maintenance, demand for vessels increased, this was evident from the smallest number of VLCCs available for loading in last six months. There were only 12 percent more VLCCs available over the next 30 days than probable cargoes compared with around 17 to 25 percent more vessels in recent past. As a result, charter costs reached this year’s high of 47.5 WS points. Additionally, increases in crude oil shipments to Asia from West Africa and to US from the Gulf increased the tonne miles, curbing the availability of ships. From the month of June, the tide for VLCCs turned again, with decline of available cargoes to be shipped. Additionally, fear that South Korea may reduce the import from North Sea region reducing the tonne mile demand added to bearish sentiments for VLCCs charter rates. In July 2011, European Union and South Korea signed a free-trade agreement in July 2011, exempting the latter’s refiners from a 3 percent tax on EU exports, according to Bloomberg. To diversify the import basket, South Korea also provided freight subsidy to refiners importing the crude from North Sea. This agreement prompted a record flow of North Sea crude to the South Korea. Now after a tax change, the benefits are expected to be reduced, forcing the refineries in Asian Nation to rethink its import strategy. This was highlighted by the Paris-based energy watchdog, International Energy Agency, in its monthly Oil Market Report. Further, an initial reading of China’s Purchasing Managers Index for May fell to 49.6, the lowest reading since October 2012. Reading below 50 signifies contraction in an economy. Slowing growth in China also took toll on

its oil demand. China’s oil imports contracted for the first time since 2009, reducing the biggest source of demand for crude tankers at a time when US purchases, the second biggest sources of VLCC demand are also slowing and owners face the worst VLCC capacity glut in three decades. China purchased 2.1 percent less crude in the first five months (Jan-May 2013), compared with an 11 percent increase in the same period last year, according to data published by Chinese Customs Dept. Amidst slowing growth, World Bank cut its forecast for the global economy for 2013 to 2.2 percent compared with earlier forecast of 2.4 percent, and slashed China’s growth forecast to 7.7 percent compared with earlier estimate of 8.4 percent. China accounts for about 15 percent of demand for seaborne crude cargoes.

Authors: Niteen M Jain Senior Analyst, Department of Research & Strategy, Multi Commodity Exchange of India Ltd Email: niteen.jain@mcxindia.com Nazir Ahmed Moulvi Senior Analyst, Department of Research & Strategy Multi Commodity Exchange of India Ltd Email: nazir.moulvi@mcxindia.com

June - July 2013 |

| 27


FEATURES

Academy With A Difference Talking of R C Singh is something like showing a Candle to the Sun. It is difficult to sum up the undaunted spirit, unquenched thirst and rock solid determination of a man with 80 per cent disability to achieve insurmountable success in the field, chosen by a few, the field of Marine Education.

B P Marine Academy, Belapur Campus

B

P Marine Academy is all set to enter Guinness Book of World Records as R C Singh, Chairman of the institute claims that the Academy has so far trained 3,20,000 cadets. BP Marine Academy is unique as it not only gives training, education to the cadets but also instills moral values in them. The Director of B P Marine Academy has claimed that his academy has given training to every second or third marine student in India. According to Singh, safety should always come first. He says that one should never compromise on safety. He gives utmost priority to safety first as while sailing to Cape Town he had taken safety very lightly and as a result, he met with an accident which led to fracture of neck, broken leg and multiple injuries. The man sees challenge as a stepping stone to reach great heights. His disability could not deter him from climbing grater heights. He started his academic career with providing courses on ‘Elementary Safety Aids’. Singh started BPMA with a 921 square feet space in 1997 and today the academy runs a wide range of D G Shipping

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| June - July 2013

approved pre-sea and post-sea courses from its more than a lakh sq feet space centre in CBD Belapur. The Panvel facility of the Academy has been constructed in the shape of ship. It is an architectural marvel. It has a revolving restaurant and classrooms of the academy are modern and fully equipped with training aids. The awards bestowed to BPMA run in numbers. It has been awarded with ‘Best Infrastructure’ amongst Marine Institutions by Big Brands Research. The architecture who designed the Panvel Campus of the academy has been conferred with Maharashtra’s best architectural award. R C Singh has received Sant Tulsidas Krit ‘Ram Charit Manas Award from All India Port Labour Association by the hands of P A Sangma in recognition to contributions made by him in providing financial assistance to the needy students. The academy not only boasts of excellent infrastructure but also excellent faculty of qualified and devoted marine engineers, navigators, academic and


FEATURES

B P Marine Academy, Panvel Campus

Instructional staff. No wonder the academy has Quality System Certification ISO 9001:2008 from American Bureau of Shipping Industrial Verification Inc and has also been rated as an outstanding institute by ICRA Rating Mumbai. The quality of Education imparted to the student is excellent. The students are given ample opportunities to showcase their talent and skills. Extracurricular activities are encouraged as a result of which B P Marine Academy received Best Marine Institute award for 2012-2013. Amongst its various initiatives towards Corporate Social Responsibility, the management of the academy has contributed ` 14 crore towards the education and training of the needy candidates since its inception. The academy is proud to be located in Mumbai, the financial capital of the country. The academy has reserved 50 per cent of its seats for the students of Maharashtra

to promote the shipping careers in this region of the country. “In a country like India if you are moving ahead, your competitors try pulling you back,” says Singh. While setting up academy, he has to go through a number of hurdles. He compares life with science. “ Just as 75 per cent of the rocket’s energy is wasted in covering 25 per cent distance, in the same way 75 per cent of one’s life energy is wasted in achieving just 25 per cent of his target, and with the leftover 25 per cent energy, he achieves 75 per cent of the target. So, the fundamental principle of life and that of science is basically the same,” says he. He emphasises that when parents cannot give good values to their children, it’s very challenging for the management of the college to give the same to so many candidates. He adds that good quality training is possible only with the support of parents. June - July 2013 |

| 29


NEWS FEATURE

Shipping & Port

Sector 2013 Overview

I

ndia is a major maritime nation by virtue of its 7,517 km long coastline, bejewelled with 13 major ports and more than 180 minor ports spread across 9 maritime states play a vital role in maritime transport & trade and are the economic drivers for the country and regions. About 95 per cent by volume and 70 per cent by value of the country’s international trade is carried on through maritime transport. Henceforth, India has a fleet strength of more than 1,122 ships with Gross Tonnage (GT) of 11.06 million. Though India has one of the largest merchant shipping fleets among developing countries, it is ranked 18th in the world in terms of Dead Weight Tonnage (DWT) with a share of only 1.09 per cent. In order to give the sector a major impetus, the government has taken various initiatives viz. 100 per cent foreign direct investment (FDI) under the automatic route; allowed income tax incentives as per Income Tax Act, 1961; standardised bidding documents besides enhancing delegation of financial powers to the Shipping ministry; and streamlined security clearance procedures. Being a focus area for development and refurbishment, Indian ports are increasingly becoming an attractive investment option for investors scouting for opportunities in Indian market. Key Statistics • Cargo growth at Indian ports continued to be moderate in FY 2013 with a 2.4 per cent year on year increase throughput to 935 million tonnes. During AprilFebruary 2013, total cargo handled at major ports in the country stood at 498 million tonnes (MT). • Major ports accounted for 58 per cent of the total cargo handling of 546 MT in FY13 compared to 61 per cent in FY 2012, while the non major ports was up at 42 per cent in FY 2013, increasing from 39 per cent in FY12. • With respect to new capacity additions, a total of 32 projects awarded in FY13, which will add 136.75 MT across the Indian port segment, as compared 3 projects in FY12. But the planned target was 42 for FY13. Recent Developments • Shipping Corporation of India (SCI) has signed an MoU with GAIL India for the transportation of 5.8 MT

30 |

| June - July 2013

per annum (MTPA) of LNG of being sourced by GAIL from Sabine Pass and Cove Point terminals in the US. • Jawaharlal Nehru Port Trust ( JNPT) has signed an MoU with Nhava Sheva Gateway Terminal, a subsidiary of Dubai-based DP World, to develop a ` 600-crore standalone container handling facility on a 27-hectare plot at JN Port container terminal through public-private partnership (PPP). • India’s first indigenous aircraft carrier (IAC), being developed at the Cochin Shipyard, will be launched by August 2013. The 40, 000 tonne-warship machinery is expected to be operational by 2018. Government Initiatives • The Union Shipping Ministry plans to develop two major ports, one each in Andhra Pradesh and West Bengal, through special purpose vehicle (SPV)based model. The ` 5,000 crore SPV-modeled ports would be located at Sagar island in West Bengal and the other most likely at Durgarajapatnam in Andhra Pradesh. • The Union Shipping ministry has awarded 14 publicprivate partnership (PPP) port projects in FY13, with an aim to build an additional capacity of 80 MTPA at an investment of ` 5,600 crore (USD 1.03 billion). A total of 26 port projects has brought-in additional capacity of 114 MTPA. In addition, the ministry has awarded a ` 785 crore (USD 144.76 million)-project for development of a ship repair facility at Cochin port. Future Outlook • Indian port sector is poised to mark great progress in the years to come. It is forecasted that by the end of 2017 port traffic will amount to 943.06 MT for India’s major ports and 815.20 MT for its minor ports. • Moreover, India plans to triple cargo-handling capacity at its ports to 3.2 billion tonnes by 2020 by investing private funds worth ` 3 trillion (USD 50.56 billion). • The Shipping Ministry is envisaging the roadmap in making the capacity of Indian ports to nearly double to 2,302 million tonnes (MT) over the next five years to be able to handle the fast growing cargo traffic. Compiled by Rakesh Roy


FEATURES

Mumbai Coast: A Safe Haven for Abandoned Ships

MT Pratibha Tapi stranded off at Mumbai Coastline.

U

nion minister of Environment and Forests Jayanthi Natarajan, admitted that there are more than 40 ships abandoned off the Mumbai coastline alone, posing dangerous environmental threat to the coastal eco-system. Many of them contain tonnes of oil, coal, dangerously floating cargo containers, toxic metals and created logistic dilemmas in the costal region. Two oil tankers MT Pratibha Tapi and MT Pratibha Indrayani, belonging to the Pratibha Shipping Co Ltd, had been anchored 11 nautical miles (20 km) off the Mumbai shore, as the firm ran into financial problems. One of these oil tankers drifted towards Madh Island, and threatened to run aground. The oil tanker MT Pavit, which drifted towards Juhu beach in June 2011, has’nt yet undertaken salvage operations due to the firm - Great Offshore – awaiting for payment. In the recent past, there have been frequent incidences of crude oil leakages due to breakdown of ships and leakage from pipelines operated by oil companies in west coast. Washed ashore with the dead ships have been oil spills, conspiracy theories and security fears. The cleaning operation after the oil spills often gets delayed due to lack of clarity about who would fund it. Experts attribute Mumbai’s growing reputation as graveyard for ships to raging sea currents and tides during the southwest monsoon months of June to September. The

currents and fierce winds can drag a ship with technical snags onto the rocky coast. India’s post-26/11 coastal defences have been brutally exposed by these incidents, but no one wants to take blame of it. The passing of the buck has begun as the Central and State agencies are passing blame to each other. Aftermath 26/11, the Central govt proposed in setting up of control rooms to coordinate patrolling by the Navy, the Coast Guard and the maritime police. The Indian Coast Guard has blamed the state government for not taking criminal action against errant ship owners, while the Maharashtra State Environmental Department officials denied the charge. It is time to implement the long-pending suggestion for creating a common corpus between the Ministry of Shipping, the Coast Guard and the Environment authorities, instead of waiting until the claim process is complete to start the salvage operations. India needs strong environmental laws to deal with shipping vessels that damage country’s fragile coastal ecosystem; and there should be provision for establishing criminal liability. The Central Pollution Control Board and the State Pollution Control Board have to become proactive in sharing information to each other to enhance environmental security in the costal region. - Rakesh Roy

June - July 2013 |

| 31


MARINE ARCHAEOLOGY

Great Lakes Shipwreck Found

The Henry B Smith and its crew of 25 disappeared after sailing into the Great Lakes Storm of 1913

100 years after the freighter Henry B. Smith disappeared in a violent Lake Superior storm, shipwreck hunters believe the boat has been finally found.

A

lmost 100 years after the Henry B Smith freighter went down during a November storm in Lake Superior, a group of shipwreck hunters thinks it has found the ship - and much of it is largely intact. The group found the wreck last month in about 535 feet of water off the shore of Marquette, Mich, according to the Duluth News Tribune.

The storm, one of the biggest on the lakes, wrecked more than a dozen ships and killed about 250 sailors. The Smith was safe in the Marquette harbor on November 7 and 8, loading iron ore, but on the evening of November 9, Captain James Owen decided to leave port for Cleveland.

The group says it hasn’t seen the name of the ship on the wreck yet, but all signs indicate it’s the Smith, sitting amid a spilled load of iron ore. “It’s the most satisfying find of my shipwreck-hunting career,” said Jerry Eliason of Cloquet, part of the group that has found many lost ships in recent years.

“The lake was still rolling, but there seemed to be a lull in the wind, the velocity having dropped to 32 mph,” shipwreck expert and longtime University of Minnesota Duluth professor Julius Wolff wrote in ‘Lake Superior Shipwrecks.’ “The gale should have blown itself out. But, this was no conventional storm. In taking his vessel out of the safety of Marquette Harbor, Captain James Owen sailed into eternity.”

“It’s a fantastic find,” said maritime historian Frederick Stonehouse of Marquette, who has written about the Smith. “I’m excited at the opportunity to look at the video and see if we can learn the cause of the wreck, to write the final chapter of the ship,” Eliason added.

Sailors on other boats reported seeing Smith deckhands battening down hatches as it went onto the open lake, Stonehouse wrote in his book, ‘Went Missing.’ Other witnesses watched the ship make a turn. He said it wasn’t a case of merely running a grid pattern over the

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| June - July 2013


MARINE ARCHAEOLOGY

100 years after the freighter Henry B. Smith disappeared in a violent Lake Superior storm, shipwreck hunters believe the boat has been finally found.

lake in hopes of getting lucky. He said the group used a culmination of hunches, research and data to pinpoint a specific search area. The data pointed them towards a possible wreck about 30 miles north of Marquette, and the hunters found the Smith just 20 minutes after dropping a sonar unit into the water. An underwater camera captured enough detail in videos and photos to convince the group that they found the Smith. “A number of wrecks we’ve found have been over the span of 20 years searching, multiple times a year,” said Kraig Smith, a member of the hunting group from Rice Lake, Wis. “Going and finding a wreck 20-some miles offshore in the span of a couple hours is extraordinary.” Ship hunter Ken Merryman, of Minneapolis, said it appears the ship is broken in the middle, but is largely intact in the front. The stern has more damage, Merryman said. “It’s a beautiful wreck with great visibility,” he said. The crew will return to the site this summer in hopes of getting more questions answered. But, the group is already starting to piece together events that led to the Smith’s demise. “It’s very clear to me that this one appeared to have broken on the surface, spilled its iron ore contents over the bottom, and then landed on the iron ore,” said Eliason, who had been considering retiring from wreck hunting partly because he wasn’t expecting any more significant finds on Lake Superior. “This was a gift from the lake gods,” Eliason said. Eliason isn’t revealing exactly how his group found the Smith, because he hopes to use the same method to find other wrecks.

Details on exactly how this group found the wreck remains unclear, as they hope to use the same method to find other wrecks. They used a culmination of instincts, research and data to pinpoint a specific search area – leading them to the shipwreck just 20 minutes after dropping a sonar unit into the water. An underwater camera captured detail in videos and photos to convince the group that they found the Smith. The vessel seems to be broken down the middle, with the stern more damaged than the front. The crew will return to the wreck site in coming months to hopefully piece together the freighter’s fatal accident. The SS Henry B Smith was a steel-hulled, propeller-driven lake freighter built in 1906 by the American Ship Building Company. The ship foundered and was lost on November 10, 1913, in Lake Superior during the Great Lakes Storm of 1913 near Marquette, Michigan. She was carrying a load of iron ore at the time of her sinking. There were no survivors from the crew of 25.

Source: www.nydailynews.com

June - July 2013 |

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NEWS: INDIA

SCI, GAIL Sign MoU for LNG Transportation New Delhi: The Shipping Corporation of India Limited (SCI) and GAIL (India) Limited have signed Memorandum of Understanding (MoU) to cooperate for transportation of LNG sourced by GAIL from USA. Under the MoU, both GAIL & SCI shall cooperate for transportation of 5.8 MTPA of LNG being sourced by GAIL from Sabine Pass and Cove Point terminals in USA. The cooperation would include SCI assisting GAIL in the charter hiring of LNG ships and GAIL

assigning step-in right to SCI in the ownership of LNG ships.

ships. GAIL has the right to nominate SCI as an equity partner in the consortium that wins the tender.

B K Mandal, CMD and Director (Finance), SCI said that with several LNG import projects being conceived in the country, LNG is seen as a key growth area for Shipping Corporation of India. SCI is planning to develop separate vertical within the company to manage LNG shipping.

Speaking on the occasion B C Tripathi, CMD, GAIL, said that LNG has become important business vertical of GAIL and the experience of SCI in the shipping business will bring huge synergetic advantage for both the companies. He added that this partnership will enable faster development of in-house fleet operations capabilities for the Company.

Mandal added that SCI will assist GAIL with the tender for hiring LNG

Vizhinjam to be Country’s Deepest Port Thiruvananthapuram: Cargo handling capacity at Vizhinjam may get a boost as the Vizhinjam international seaport will have the deepest draft in the country and it will be able to berth mega vessels of 18,000 Twenty Foot Equivalent Unit (TEU) capacity.

adjoining 500-metre-long container yard. The highlights of the master plan include a 500-metre fish landing centre for fishermen, a modern 300-metre cruise terminal to promote tourism-related activities and permanent base stations for Indian Navy and Coast Guard.

The master plan for the proposed Rs 4,010-crore Vizhinjam project, which was unveiled, says the port will have several such unique features and is expected to attract many international vessels that pass through the western coast. The first phase of the project will have 800-metrelong berth with a breakwater area of 3,180 metres and an

K Babu, Port & Excise Minister, said that apart from the immediate monetary benefits like getting around Rs 500 crore for providing a base for the defence forces, this station will also spruce up the national marine security and even get us a faster environmental clearance from the centre.

Maritime Industry Set to Meet at INMEX India 2013 Mumbai: Leading local and international maritime players are gearing up to meet at the 8 th edition of INMEX India, the region’s largest shipping exhibition and conference from 8–10 October at the Bombay Exhibition Centre, Mumbai. Some of the international and local companies that will be showcasing their latest products and services include Abu Dhabi Ship Building, Holland Marine Equipment, Dutch Thruster Group, Simsekler General Ship Chandlers and Ship Repair Inc, Larsen & Turbo, Lion Rubber, ABB India, Elcome Marine, Vanson Engineering to name a few.

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country pavilions including Holland, Norway, Finland, Singapore, China, Korea and Canada,” said Guru Prasath, Group Exhibitions Director, Informa Exhibitions.

International and domestic delegates during INMEX 2011.

“Despite volatile market conditions, the continued growth of INMEX India is testament to the genuine business opportunities gained from the show. This year’s edition spans across 16,000 sqmt of exhibition space and will host more than 550 participating companies from 41 companies with 8

INMEX India is endorsed by Ministry of Shipping and supported UK Trade & Investment (UKTI), Royal Norwegian Embassy, Security Association for the Maritime Industry (SAMI), Danish Export Association, Indian National Ship Owners Association (INSA), Shipyards Association of India (SAI), Indian Private Ports & Terminals Association (IPPTA), Council of Supply Chain Management Professionals (CSCMP), MASSA and MANSA amongst several others.


ď ›NEWS: INDIAď ?

Emirates Shipping Launches Central China-India Service New Delhi: Emirates Shipping Line has launched its Central China-India Service, which connects central and Southern China with Southeast Asia and the Indian subcontinent, and provides connections to the Southeast Asia region via Singapore and Port Klang, Malaysia. The first sailing of the CCI Service will commence from Ningbo,

China. The port rotation will be Ningbo; Shanghai; Shekou, China; Singapore; Port Klang; Nhava Sheva and Pipavav, India; Colombo, Sri Lanka; Port Klang; Singapore; Hong Kong; and back to Ningbo. The container line will run the CCI service in parallel with its existing China India Express Service. Emirates also has a slot agreement with Hanjin Shipping in its India-China Service.

Chennai Port in Revivable Mode Chennai: Chennai Port, suffered the revenue loss due to iron ore and coal volumes, is transforming its berth previously used to handle coal and iron ore to now handle alternative dry bulk and break bulk cargoes to recover the loss. The port is on a drive to improve the productivity and handling of other cargoes like food grains, fertilisers among others, and has also stepped up their marketing efforts to recover the loss to its top-line. Over the last few years, Chennai Port has lost about 18 million tonnes of cargo comprising about 10 million tonnes of coal and 8 million tonnes of iron ore due to reasons beyond the control of the Port, a substantial drop in revenue around ` 250 crores. At the moment, Chennai Port is in the process of implementing a number of projects that will enable their iron ore berth Bharathi Dock II and Jawahar Dock East which is used to handle coal, to handle alternative dry bulk & break bulk cargoes like food-grains, dolomite, fertilizers etc. The Port is also planning to improve their productivity by expanding their mechanical handling equipment; a dry dock will be developed at Timber Pond/Boat basin of the Port.

Andhra Ports Rise in Cargo Handling Hyderabad: Gangavaram and Kakinada ports in Andhra Pradesh have registered an average growth of 35 per cent in cargo handling. Though these ports are being operated by private companies, the state government has some equity holding in them. During the first quarter of this fiscal, Gangavaram port handled 4.2 million tonne cargo as against 3 million tonne in the corresponding period last fiscal, posting a growth of 40 per cent. Of this, more than 85 per cent was coal, while the remaining were limestone, timber, fertilisers and other items, said port officials. Last fiscal, the port handled 13.09 million tonne cargo, and expects over 15 million tonne this fiscal. Kakinada deepwater port registered a 30 per cent growth in cargo handling during the first quarter at 3.5 million tonne. In 2012-13, the port handled 12.07 million tonnes of cargo and is set to touch the 14-million tonne mark this year, according to Kakinada port sources. The planned coalmechanisation project at Kakinada port, which would be enhanced to 8 million tonne a year, is expected to ready by August-end. That expansion will be increase the hike in coal handling in Kakinada.

SPV-based Model for Two Upcoming Ports Kolkata: The Union Shipping Ministry is planning to shell out ` 5,000 crore as equity in the special purpose vehicle (SPV) based model for the two major ports it is planning in Andhra Pradesh and West Bengal. This would be in deviation from the trust based model, mandated by Major Port Trust Act, 1963.

there has to be a rail link connecting the port from the island. That link only will involve an investment of about ` 3,000 crore. With these projections, the government will have to shell out equity worth ` 5,000 crore in both these projects. The state government will have to pitch in with the balance amount.

The SPV model wherein the Centre would pitch in with 74 per cent and the balance 26 per cent would be the contribution from the state Government. One port would be located at the Sagar island in West Bengal and the other most likely at Durgarajapatnam in Andhra Pradesh. The projects are likely to cost around ` 7,500 crore. The Sagar port would cost around ` 5,500 crore as

The feasibility study for the projects is currently on and would be completed in the next two months. After the study is over, the ministry will circulate a Cabinet note for the SPV-based funding model for the projects. The ministry of shipping has set up a target to award 25 projects worth ` 25,000 crore in a mix of public-private partnership and government spending in the current ďŹ scal. June - July 2013 |

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Essar Ports Bags Berths Development Project Mumbai: Essar Ports Limited (EPL), India’s second-largest, privatesector port and terminal company, for through its wholly-owned subsidiary Vadinar Oil Terminal Ltd has won the bid for mechanisation and operation of three iron ore berths (two outer harbour berths Rajiv Agarwal - MD and one inner harbour berth) at & CEO, Essar Ports Ltd Visakhapatnam Port on Build Operate Transfer (BOT) basis for a concession period of 30 years. Essar has quoted a revenue share of 31.01 per cent for this project. These three berths will add a combined capacity of 23 MMTPA. This will be a big boost to third party cargo handling and revenue of EPL as it will handle 17 MMTPA of third party cargo and 6 MMTPA of Essar Steel cargo.

EPL believes in the potential of iron ore export and coastal movement through the east coast of India. On commissioning of this project, EPL’s total capacity for iron ore export at the east coast will become 39 MMTPA with 4 highly mechanised iron ore berths (three in Visakhapatnam Port and one in Paradip Port). Rajiv Agarwal - Managing Director & CEO, Essar Ports Ltd, stated that this project will significantly increase the 3rd party cargo handling of Essar Ports by contributing 17 MMTPA of cargo. This will add to the port’s continuous efforts towards developing modernised world-class terminals and serve new customers. This project will significantly increase the efficiency of Visakhapatnam Port thereby increasing its competitiveness and facilitating industrial growth in the region.

Allcargo Logistics Eyes US Market Mumbai: After carving its niche in Indian market, Allcargo Logistics, Indian leading provider in logistics solutions and logistics services, is planning a move for an acquisition in the US market. The company offers less-than-container load (LCL) services to exporters and importers – it does not own container vessels, but provides third-party container spaces by consolidating cargoes from different parties. In other words, LCL cargoes, which weigh lesser than full-load containers, are put together with other cargoes and shipped to their respective destinations. S Suryanarayanan, (Finance), Allcargo

Director Logistics

Allcargo Logistics is currently operating through an agent in the US. But now the company is looking at having its own presence there, which would complete its global network. It currently has a network across 89 countries with 189 own offices across the world. Other than in the US, it is present in major global markets, after its acquisition of ECU Line in Europe in 2005-06 and two Hong Kong based entities in 2010. Since then it had made a string of smaller acquisitions in these markets through its overseas subsidiaries.

Dugarajapatnam to Get Major Port Hyderabad: Durarajapatnam is all set to get recognition in Indian Maritime sector as Union Cabinet has chosen it as the location for one of two new government-controlled ports. This will be the second Union Governmentcontrolled port in Andhra Pradesh after the one in Visakhapatnam. The Union Government currently controls 13 ports that handled a combined 545.67 million tonnes (mt) of cargo in the year to March. The 13 ports account for some 52 per cent of India’s external trade shipped by sea. The new ports are to be developed as part of an effort to triple the country’s cargo-loading capacity to 3.13 billion tonnes by 2020. 36 |

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Mormugao Port to Focus on Cruise Terminal Mumbai: The Union Shipping ministry has suggested the centralgovt controlled Mormugoa Port in Goa to develop the port as a cruise terminal as iron ore ban has led to poor performance of the port resulting in less revenue collection. With no solution in sight regarding the iron ore mining and iron ore exports after Supreme Court’s intervention, the ministry also wants the port to now look at handling alternate cargoes such as pharmaceuticals, fertilisers and petroleum to boost revenues. Mormugao Port was designed mainly for the handling of iron ore cargo since its inception in 1888, but the ban on mining and export of iron ore by the Supreme Court had affected cargo volumes as it fell 77 per cent in the past year. “A major component of cargo at Mormugao Port was iron ore. Now, with the Supreme Court putting a ban on the exports of iron ore, we have asked the port to look at alternate sources of revenue. We have also instructed the port to look at cruise operations in a big way,” a senior official at the Ministry of Shipping told.


NEWS: INDIA

Mundra Port Handles Largest Containership Mundra: Mundra Port has created a history in Indian Maritime sector by handling the largest containership. Mundra Ports which is controlled by Adani Ports and Special Economic Zone Limited (Adani Ports), one of India’s largest private port developer and operator and part of Adani Group. The largest container vessel M V MSC Gautam Adani, Chairman, Adani Group Valeria has the capacity of 14,036 TEUs (Twenty Equivalent Units). It is the first of its kind to call at any Indian port. MV MSC Valeria, owned by Swiss-based MSC Mediterranean Shipping Company, a leading global shipping line, with overall Length of 365.5 meters (1,199.2 feet) was delivered to MSC in June 2012 and is currently deployed in MSC’s AsiaMediterranean Dragon service. Mundra Port ranks

Aegis Logistics Net Profit up 59% Mumbai: Aegis Logistics Limited (ALL), a leader in Oil, Gas and Chemical Logistics, has reported a 59 per cent growth in consolidated Profit After Tax (PAT) at ` 35 crore in Financial Year (FY) 2013 against the consolidated PAT of ` 22 crore recorded in FY 2012. The consolidated revenue of the company declined by 11 per cent to ` 3,982 crore in FY13 when compared to the consolidated revenue of ` 4,464 crore registered in FY12. The Liquid Division capacity is estimated to grow by 56 per cent to 594 kilolitres in FY 2015 from 324 kilolitres in FY 2013. The Gas Division handling capacity is projected to jump 13 per cent to 8.5 lakh MT in FY 15 from 7.5 Lakh MT in FY13. Auto gas station business is poised for 44 per cent growth to 135 stations in F Y 15 from 94 stations in F Y13. Distribution network business would register a cent per cent jump to 80 numbers in FY 15 from 40 in F Y 13.

second amongst Indian ports in terms of total cargo handled during financial year 2013. Adani Ports has developed and operates three container terminals at Mundra, Gujarat. MSC Valeria berthed at the new container terminal, which has one of the deepest water depth in India and extensive related infrastructure including state-of-the art container cranes. “Considering the current global economic scenario, especially in the shipping and logistics sector, delivering cost efficient services to customers will be the single most important factor to the trade. I believe that by bringing 14,000 TEUs ship in India and specifically Mundra, we will certainly open a new chapter in container business of our country, which in turn will create new opportunities in the sector proving to be the game changer. India will now feature on the global route for large container shipping business,” said Gautam Adani, Chairman Adani Group.

Cochin Shipyard to Raise Fund Bangalore: In order to boost expansion plans for ship repair and fabrication, Cochin Shipyard Ltd will raise the money by selling shares to the public through Initial Public Offering (IPO) and issue tax free bonds. The estimated ` 600 crore through sale of the tax-free bonds will be used for expansion of ship repair and fabrication. Being the first shipbuilding company for the aircraft carrier of the country, Cochin Shipyard filed an application with the Finance Ministry for its approval. “The board of Cochin Shipyard will meet this week to clear the IPO plan,” the spokesperson for

Cochin Shipyard said. The size of the IPO, the number of shares to be sold, and the timeframe for the sale will be decided after the board approves the proposal. “We are looking at ` 1,000 crore worth of expansion to be financed through a mix of tax-free bonds and share sale,” the spokesperson added. The global shipping and shipbuilding sector has taken a hit due to the economic downturn since 2008, hurting Cochin Shipyard’s efforts to win new orders for commercial ships, forcing the yard to look at other related areas for growth.

Cargo Traffic up at Mormugao Port Panji: The general cargo traffic at Mormugao Port for the month of June 2013 has increased to 7.22 lakh tonnes, registering an increase of 32 per cent over the corresponding month of last year. The main commodities handled were coking coal, wood chips HR coils, granite and bauxite. Similarly general cargo traffic during the first quarter increased to 2.51 million tonnes, registering a 12 per cent increase over the corresponding quarter of last year. This is good news for the Mormugao port as it was badly hit after mining operations were suspended since September last. June - July 2013 |

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Essar Ports to Start Dollar Earning System Mumbai: Essar Ports, India’s second-largest private sector port and terminal operator, is moving towards a system where almost all its customers will pay it in US dollars. The company has already begun the process of migrating to a dollar tariff structure at its Salaya port. The company is planning for 80 per cent of its total earnings will be in dollars because the port’s customers are working for having income in dollars, said Rajiv Agarwal, CEO, Essar Ports. Essar will be the second port operator after Gujarat Pipavav shipyards to start moving away from rupees while charging

Slipping Containers Pose Threat to Gujarat Waters Ahmedabad: Gujarat Maritime Board (GMB) has been alerted warning to ships approaching Gulf of Kutch, after about 17 containers on board MV Rajiv Gandhi, a vessel container of Shipping Corporation of India (SCI), slipped off Okha West when it was on way to Mundra port and begun floating in the sea. S C Mathur, Chief Nautical Officer (CNO), GMB, said that the containers are floating in the sea posing danger to vessel traffic movement in Gulf of Kutch, a major corridor for crude oil imports. Mathur said all the authorities concerned like Indian Coast Guard (ICG), Director General of Shipping and SCI have been informed about the incident, and GMB’s Vessel Traffic Management System (VTMS) in Gulf of Kutch is issuing alerts. According to GMB, 16 containers onboard M V Rajiv Gandhi that slipped were empty, while 1 contains high density polyethylene (HDPE). The incident is posing a threat to vessel traffic movement as a lot of crude carriers come to Gulf of Kutch. A tug from Jamnagar port has been deployed to keep a constant vigil over containers and push them towards coast. 38 |

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tariff. The company, which operates terminals at Vadinar, Hazira, Salaya and Paradip among others, mostly handles coal and bulk cargo imports apart from container traffic. The development also comes at a time when India’s rupee has plunged to a record low against the US dollar. The Federation of Indian Export Organisation (FIEO) in a statement has urged India’s exporters to use derivatives as a hedge to combat rupee volatility. Charging tariff in dollars will create a natural hedge for Essar Ports, Agarwal said.

Chennai Port Scraps Container Facility Tender Chennai: The trustees of the Chennai Port Trust have asked its port’s management to chalk out a revised plan on the proposed ` 3,700-crore mega container terminal project, amid poor response from bidders. Essar Group was the only company interested in the project. However, it quoted 5.15 per cent as revenue share for the port. This was shot down by the trustees stating it was low for such a large project. DP World and Port of Singapore Authority (the two companies which are currently operating container terminals) offered over 35 per cent as revenue share, it will not be feasible to accept 5.15 per cent. The port trust touted the mega terminal as one of its prestigious

projects. The Union Cabinet had sanctioned the project in 2010. The plan was to have two new breakwaters (total length 4.5 km), and a continuous quay length of 2 km, which would ultimately have had 22-metre ‘alongside depth’ to handle ultra-large container ships of over 15,000 20-foot equivalent unit capacity and 400 m long. The terminal was planned to be built in ‘build, own and transfer’ model. The cost of dredging, floating crafts and navigational aids estimated at ` 561 crore was to be borne by the port trust. The private operator was to invest on berth and breakwater construction, re clamation of b ack- up are a , handling equipment and other landside infrastructure at a cost of ` 3,125 crore.

GMB to Develop Maritime Cluster Ahmedabad: Gujarat Maritime Board (GMB), the regulator for ports and shipping activities in the state, will develop a Maritime cluster on the lines of such centres in Singapore and Dubai. GMB will also develop a port city at Mundra in Kutch district while Gujarat Industrial Development Corporation (GIDC), a state-run body for attracting industrial investments, will build a second one at Pipavav, according to A K Rakesh, Vice-Chairman and CEO, GMB. GMB is in the process of initiating feasibility studies for the maritime cluster, expected to be developed close Gandhinagar and Ahmedabad. The port city planned in Mundra will be spread over 250-500 sqkm.


NEWS: INDIA

Kerala is the Frontrunner in PPP Model Port Projects Kochi: With two projects worth over ` 5,500 crore, Kerala is the frontrunner among states that have projects under D S Rawat, Secretary bidding in the General, Assocham public-privatepartnership (PPP) model in ports sector, according to a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham). The report titled ‘Port Developments in India’ shows that the Kerala projects represent a share of 40 per cent in value terms. While two projects worth over ` 6,200 crore are under construction in the state, one completed project, worth over ` 700 crore, has been put to service delivery. D S Rawat, Secretary General of Assocham, said that the total 881 PPP projects worth over ` 5.4 lakh crore taken up across India, 62 projects in the port sector worth over ` 82,000 crore are in different stages of implementation. While there are 31 completed port projects worth over ` 24,700 crore, about 21 PPP projects in the port sector with a share of 52 per cent worth over ` 43,000 crore are under construction, 8 projects worth about ` 14,000 crore with a share of about 17 per cnet are under bidding. In the under construction category, Kerala, Maharashtra, Odisha and the Union territory of Pondicherry are the regions with maximum share, ranging from 7 to 16 per cent of the public-private-partnership (PPP) projects, worth over ` 2,900 crore to ` 6,700 crore.

CWC-CFS for Trade

Pipavav

Gandhidham: The Central Warehousing Corporation (CWC) has commissioned its 38 th Container Freight Station (CFS) at Pipavav Port. The facilities of CFS were dedicated to the trade by R L Meena, Commissioner of Customs, Jamnagar, and opening function was presided over by T K Doshi, Director (M&CP), CWC, CO, New Delhi. In his address the Commissioner of Customs emphasised to carry out Impex Business in healthy & competitive atmosphere to compare the services of Private & Govt Agencies. V R Gupta, Director (Finance) was the Guest of Honour. Representatives of CHA’s and Shipping Lines & Importers / Exporters were present at the occasion. M S Meena, Asstt Commissioner and Dharma Raj Singh, Asstt Commissioner and

Port

Ready

Other Custom Officers were also present at the occasion. M/s Nirma Limited brought first consignment of Export and M/s HMT brought first consignment of Import at the CFS. R N Meena, General Manager (Comm) welcomed the Chief Guest, other dignitaries and addressed the brief of CWC and working of CFS across the Country. Whereas V K Tyagi, Regional Manager, CWC, RO, Ahmedabad expressed his gratitude to the invitees and August gathering. The total area of CFS is 22706 SMT with covered area of 6600 SQM and open Paved Yard 10000 SMT to facilitate cargo storage and Impex Container storage and handling. The CFS is equipped with all modern handling equipments.

India to Build its Own Dredgers Kochi: The Union shipping industry has devised a policy to overcome the current crisis faced the shipping industry and to help the country’s shipbuilding industry in building the much needed dredging capacity of its own. The shipping ministry wants Cochin Shipyard Company to get into building dredges for the Dredging Corporation of India (DCI). In a threeway partnership, DCI would buy the dredgers and deploy it for dredging work at the Paradip Port. The Shipping Ministry is keen to go ahead with the project after finalising the cost structure and taking stock of the shipyard’s capacity to take up such an order. A similar plan is also in the offing for the Shipping Corporation of India. SCI is expected to get into the dredging business and provide its services to the Kandla Port. SCI plans to buy its own dredgers and deploy it at the Kandla Port. Such cross-fundings aside, dredging itself has continued to be a sorepoint for many Indian ports. The Kolkata Port, for instance, is a riverine port with siltation all the year round has put a lot of pressure on its funds because of huge maintenance dredging bills. It hampers larger vessels from docking on the port since the draught is too less. Even in sea facing ports, both capital dredging (when dredging is done for the first time) and maintenance dredging have gained more importance than ever before. Ports like Jawaharlal Nehru Port, Chennai, Tuticorin have employed dredgers to improve the draft to 14 m at their respective ports. June - July 2013 |

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APSEZ to Operate AICTPL in Mundra Mundra: Adani Ports & SEZ Ltd (APSEZ), part of the Adani Group, has entered a joint venture ( JV) with Switzerland-based MSC Mediterranean Shipping Company, the world’s leading shipping company to operate the ‘Adani International Container Terminal Private Ltd’ (AICTPL), in South Basin, the third container terminal at Mundra Port. The new terminal has state of the art technology and environmentally friendly footprint.

Kolkata Port Trust to Lease out Dry Docks Kolkata: The Kolkata Port Trust (KoPT) will lease five of its dry docks, which are used for ship breaking, repairing and maintenance purposes, to private operators for raising revenue, said R P S Kahlon, Chairman, KoPT. Speaking on the sidelines of the Calcutta Freight Brokers AGM, Kahlon gave the information

that already a few domestic and international companies, including one from Glasglow, Scotland and another south-based domestic company, have expressed interest in the dry docks. Currently, the utilisation of the dry docks’ capacity is very low and hence the leasing proposal.

EDFC Gains Momentum

Gautam Adani, Chairman, Adani Group, said that the new Container Terminal will enable the biggest and largest container vessels to seamlessly berth and operate at Mundra. With rapid access to North and West India hinterland, the trade at large will benefit from scale benefits of larger vessels calling at Mundra.

Lucknow: The initiative to develop an industrial corridor on Eastern Dedicated Freight Corridor (EDFC) on the lines of Delhi-Mumbai Industrial Corridor on Western Dedicated Freight Corridor has gained momentum, after the Uttar Pradesh (UP) Govt had pitched for it. On behalf of UP Government, Alok Ranjan, Infrastructure and Industrial Development Commissioner (IIDC), UP, presented a detailed concept paper. It highlighted the potential of junctions along the corridor of being developed into industrial/investment zones and trans-shipment hub.

In addition to proximity to hinterland markets, providing a compelling cost advantage to port users, the new Container Terminal will be a regional hub with Transshipment of International cargo being performed, he added.

It is proposed to develop two national investment and manufacturing zones (NIMZs) and five industrial zones along the UP section of the industrial corridor. The inter-ministerial group (IMG), constituted by the Central Government to examine the feasibility along with structural and financing arrangements for proposed Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC), met in New Delhi. States included in the EDFC were invited to the meeting.

Major Ports to Fund Dredger Purchases: Vasan New Delhi: Profit-making ports, including Kandla and Jawaharlal Nehru port, will be asked to contribute funds for the state-owned Dredging Corporation of India (DCI) to procure dredgers, according to Shipping Minister G K Vasan.

of 25 metre. The dredgers were financed partly through loans from Deutsche Bank and BNP Paribas and partly from the company’s internal resources.

This will be first time that the major ports will fund dredger procurement. He would soon ask some of the ports to part-finance the purchase of two dredgers, said G K Vasan after dedicating DCI Dredge XX, a trailer suction dredger of DCI, to the nation.

D K Mohanty, Chairman and Managing Director, DCI, said the company planned to order two more dredgers costing around ` 1,900 crore, which the ports would part-fund, he said. The Shipping Ministry approved the procurement of the three trailer suction hopper dredgers of 5,500 cubic metre capacity each by DCI in April at a cost of ` 1,570 crore.

This is the second dredger that DCI has launched in the last eight months. The last one was launched at Ennore Port in December 2012. A third dredger is expected to join the fleet in early of next year. The company does maintenance dredging for the major ports. The new dredger, DCI Dredge XX, is capable of dredging to a depth

Vasan said DCI had capex plans for about ` 1,972 crore in the 12 th Plan. This includes placing order for two more 9,000 cubic metre capacity dredgers. These dredgers are expected to be procured in the next four to five years, and help DCI take up to 80 per cent of the annual maintenance dredging works of Indian ports.

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NEWS: FOREIGN

ClassNK Issues World’s First SOC for Ship Recycling Facility Japan: ClassNK has issued the world’s first Statement of Compliance (SOC) for a ship recycling facility to Jiangmen Handing the SOC by Z h o n g x i n Matsui, Executive Shipbreaking Vice President, & Steel Co ClassNK (left) to Ltd. The SOC Liang, Director, certifies that Zhongxin (right) the facility and ClassNK (left) and its recycling Liang, Director, p r o c e dures Zhongxin (right) are fully in compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (Hong Kong Convention). This marks the first time that a ship recycling yard has achieved certification in line with the convention. Zhongxin Shipbreaking yard has been a pioneer in green ship recycling and earned recognition as a ‘AAAA’ level Green Shipbreaking Enterprise from the China National

Ship Recycling Association (CNSA) for its safe and environmentally sound ship recycling practices. Green ship recycling has become an important issue in the maritime industry, especially following the adoption of the Hong Kong Convention. International regulations drive the demand for high quality ship recycling facilities which can recycle vessels in an environmentally friendly manner. After a thorough review of the Ship Recycling Facility Plan (SRFP) developed by Zhongxin with the assistance of Wilhelmsen Ship Management, ClassNK, working as a third party certification body, confirmed that the recycling practices of the yard were in compliance with the Hong Kong Convention, and issued the world’s first SOC to the recycling yard. The SOC was officially presented to Zhongxin’s Director, Liang by ClassNK Executive Vice President Toshitomo Matsui prior to ClassNK’s Ship Recycling Seminar held in Tokyo.

Bisso Marine Buys 3 Offshore Barges USA: Bisso Marine, LLC, a premier provider of energy and maritime support services, announced the acquisition of three offshore construction assets: the 800 tonne capacity derrick barge, Ex-IOS 800; the combination derrick laybarge Ex-IOS PIPELINER and the 400’ x 100’ accommodations/support barge Ex-INTERNATIONAL FRONTIER. The barges will be in the shipyard and drydocked to receive some modifications and upgrades during the next few weeks and will be renamed before being put into service in June 2013. Ex-IOS 800 (300’ x 90’) was built in 2007. With its 800 ton A Frame and two (2) 135 ton revolving cranes the IOS 800 has the capability to support major structural components while performing other major related tasks. Ex-IOS PIPELINER, built in 2007, is a purposely built vessel intended to perform new pipeline installations. Ex-INTERNATIONAL FRONTIER is a 400’ x 100’ x 25’ construction vessel set up for subsea well intervention and saturation dive operations.

GL to Construct CSCL’s Triple-E Vessels China: Germanischer Lloyd (GL) has signed a classification agreement with Hyundai Heavy Industries (HHI) for the construction of five 18,400 TEU containerships. The so far largest container vessels are ordered by China Shipping Container Lines (CSCL). CSCL expects that the combined efforts with HHI and GL lead to the most state-of-the-art containerships that will strengthen their international competitiveness and global service network. Besides its size, the new type of containership is unique in its environmental performance with reduced fuel consumption and CO 2 emissions. According to HHI, fuel consumption will be cut by 20-30 per cent per unit and thereby lower its unit cost considerably. Each of these mega containerships measures 400 m overall in length and 58.6 m in width. They will be

built according to GL’s rules for classification and construction. Delivery is scheduled to begin in the second half of 2014. The vessels are equipped with the GL class notation RSCS (Route Specific Container Stowage). RSCS was recently introduced to provide an even more efficient usage of cargo capacity with more flexibility and more laden containers on board on specific routes without compromising on safety. With the class notation EP-D (Environmental Passport Design) the vessels are prepared for upcoming regulations at an early stage. EP-D is a compilation of relevant ship characteristics for meeting national and international environmental Standards. June - July 2013 |

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NEWS: FOREIGN

KR, Korea Eximbank Sign MoU South Korea: The Export-Import Bank of Korea (Korea Eximbank) has concluded a Memorandum of Understanding (MoU) for ‘Cooperation in the Areas of Shipbuilding and Offshore Plants’ with Korea Register of Shipping (KR). Hong Young-pyo, Executive Director, Export Credit Group at Korea Eximbank

The MOU commits Korea Eximbank to enlist KR’s ship classification service in ship transactions involving the bank’s financing, while KR is to provide technical consulting on ships and offshore

plants. The two institutions would also cooperate in overseas projects and in employee training. Korea Eximbank plans to use KR’s expertise to increase its support for environment-friendly ships, while KR seeks to accelerate its overseas expansion under Korea Eximbank’s support. Hong Young-pyo, Executive Director, Export Credit Group at Korea Eximbank, remarked at the signing ceremony, “Korea Eximbank will contribute to the development of the shipbuilding and maritime industries by devising more sophisticated ship finance solutions, based on a convergence of finance and technology.”

PortMiami Announces New Arrival of Maersk Line’s Transpacific 7 Service USA: Maersk Line, the global containerised division of the AP Moller – Maersk Group, and the leading container shipping company in the world, added PortMiami to its Transpacific 7 (TP7) Service. The first call for the TP7 Service started at PortMiami with the arrival of the Maersk Kristina, a 6,700 TEU (twenty foot equivalent unit) cargo vessel. The service’s line up will include additional cargo vessels with a capacity of

8,700 TEUs. The South Florida Container Terminal Miami will handle the new service at their PortMiami cargo yard. The new weekly TP7 Service at PortMiami offers more competitive transit times from South East Asia to the East Coast of the United States. PortMiami will be the only direct service to Yantian, China and Kaohsiung, Taiwan in the market today.

Dutch Navy Contracts Imtech for Submarine Upkeep Netherland: Imtech Marine has signed a contract to be involved in the execution of the capability upkeep programme Walrus-class submarines (IP-W) of the Royal Netherlands Navy. The Dutch Defense Materiel Organization granted Imtech Marine Netherlands the assignment to carry out the mechanical, engineering and electrical upgrade works on board the submarines. The assignment will be carried out at the Naval base in Den Helder and will run from 2013 until 2020. IP-W includes a large number of modifications, such as disassembly, assembly and installation of a variety of equipment and systems. This will ensure that the submarines will remain effectively operational in service until at least 2025. The complex project is based on the intensive cooperation between the Royal Netherlands Navy, the Dutch industry and research institutes, with an important role for Imtech Marine. 42 |

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Vi k i n g C r u i s e s L aunches Ocean Product Line USA: Viking Cruises has announced the launch of its ocean product line, Viking Ocean Cruises, marking the introduction of the travel industry’s first new cruise line in nearly a decade. Developed from the ground up to return the focus of cruising to the destination, Viking Ocean Cruises will begin sailing in May 2015 with its first vessel—Viking Star—embarking on maiden voyages in Scandinavia and the Baltic; and the Western and Eastern Mediterranean. Viking Cruises has aggressive expansion plans in both the ocean and river cruise categories, with a second ocean ship on order for delivery in 2016 and conditional orders and options for four more additional ocean vessels. The ocean ship order follows the company’s continued rapid fleet expansion in the river cruise sector, with 10 new river ships recently christened in March of this year and 12 new river ships planned to launch in 2014. Leveraging extensive feedback and input from Viking River Cruises passengers, Viking Ocean Cruises was developed with experienced travelers in mind.


NEWS: FOREIGN

US, Canada, EU Sign Atlantic Ocean Research Accord US: US, Canda, EU have signed an agreement ‘Galway Statement on Atlantic Ocean Cooperation’ that concerns research into the workings of the Atlantic Ocean and its interaction with the Arctic. The alliance will build on existing bilateral cooperation agreements and projects with the aim of developing and advancing a shared vision for the Atlantic. For the European Union, the Statement was signed by European Commissioner for Research, Innovation and Science Máire GeogheganQuinn and European Commissioner for Maritime Affairs and Fisheries Maria Damanaki. For the United States the Statement was signed by Dr Kerri-Ann Jones,

Teekay Offshore Signs FSO Contract with Statoil Brazil: Teekay Offshore Partners LP has entered into an agreement with Statoil Petroleum AS (Statoil), on behalf of the field license partners, to provide a floating storage and offtake (FSO) unit for the Gina Krog oil and gas field located in North Sea. The contract will be serviced by a new FSO unit converted from the 1995-built shuttle tanker, Randgrid, which is currently 67 per cent owned by Teekay Offshore. The Partnership’s portion of the FSO conversion project is expected to be completed for a total net capital cost of approximately USD 220 million, including the cost of acquiring the remaining 33 per cent ownership interest in the Randgrid shuttle tanker. Following completion in the first quarter of 2017, the newly converted FSO unit will commence operations under a 3-year firm period timecharter contract to Statoil, which includes 12 additional one-year extension options. “This strategically important conversion project represents another milestone in Teekay Offshore’s expanding FSO franchise,” commented Ingvild Sæther, President, Teekay Shuttle and Offshore Services.

Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs. For Canada, Senator David Wells signed on behalf of Edward Fast, Canadian Minister of International Trade and Minister for the Asia-Pacific Gateway. The existing cooperation is coordinated mainly through bilateral science and technology agreements, or takes place within the framework of international fora. One of the aims of the initiative is to obtain an overview of activity, spot gaps and then explore what new opportunities for cooperation may exist.

Maasvlakte 2 Officially Opens Netherlands: Dutch Melanie Schultz van Haegen, Minister of Infrastructure and the Environment, has opened Maasvlakte 2 to shipping. “Today we are clearing the way for international shipping & trade. That’s typical of the Netherlands. That’s how we became big. With Maasvlakte 2, the Netherlands is throwing the door wide open to the newest generation of container ships,” said the Minister. “We offer space for the latest terminals. The port is growing 20 per cent larger, and the container capacity has doubled. Thousands of direct and indirect jobs will be created,” the Minister said on the occasion.

“Together we have succeeded in constructing this phase of Maasvlakte 2 according to schedule and well inside budget. The project has turned out approx. EUR 150 million less expensive than estimated. This becomes evident now that the construction has been largely completed,” according to Hans Smits, CEO of the Port of Rotterdam Authority. A fleet of around 25 vessels, varying from classic three-masters to a modern container ship, will be the first to sail officially via the Yangtzekanaal to Maasvlakte 2. In the second half of this year, the Port Authority will place poles in the inland lake of Maasvlakte 2 for ship-to-ship transfer.

LEEVAC Shipyards to Build Hornbeck Offshore’s MPSVs US: LEEVAC Shipyards Jennings LLC, of Jennings, LA, a subsidiary of LEEVAC Shipyards, LLC has signed contracts with Hornbeck Offshore Services, LLC, an affiliate of Hornbeck Offshore Services, Inc of Covington, LA for the construction of two STX Marine SV 310 Multi-Purpose Supply Vessels; 302’ x 76’ x 26’, 12,070 BHP diesel electric powered MPSV’s. The SV 310 is a very

complex vessel design with unique characteristics integrated into the design by Hornbeck Offshore to meet a number of subsea inspection, repair and maintenance (IMR) support and heavy lift requirements. The vessels will be outfitted with a 250 ton crane provided by Cargotech, and will be powered by four (4) Caterpillar Model 3516C Tier 3 IMO II Marine variable speed diesel propulsion generator sets rated at 2250 kw each. June - July 2013 |

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NEWS: FOREIGN

HHIC Bags New Orders

Big

Philippines: HHIC’s Subic Shipyard has won the bid to build 6,800 TEU container ships for Technomar, a shipping company based in Greece. In addition, the Korean shipbuilding company has signed an agreement to build 38,000 CBT LPG carriers with Exmar. Because HHIC has so far built carrier ships, tankers and bulk carriers only, building a gas carrier represents a significant move. The total amount of bids earned by HHIC so far reaches up to US 600 million dollars (options included 12 vessels). These ships will be built in Subic Shipyard, the first delivery being scheduled for 2015. In particular, recently contracted container ships are high-efficiency and high-performance, 2nd-generation economical vessels whose fuel consumption can be reduced by 5-7 per cent, compared to the ships contracted in 2011. In addition, they are environmentally-friendly because LNG, LPG and heavy oil can be used as fuel. Moreover, it’s been reported that NSC from Germany has exercised its option with HHIC for additional shipbuilding regarding 9,000 TEU container ships. In addition, a deal on four 180,000 tonne bulk carriers with another European shipping company is under way. After solving all labor problems recently, the Yeongdo Shipyard has signed a LOI for building OSVs with a European shipbuilding company. The future will show if it could eventually win this bid for the first time in five years. The labor union has also been very supportive by sending a letter of appeal to the shipping company and asking for help to related industries to help the Company win the bid to build 150,000T coal carriers, which would be promoted by five KEPCO’s affiliates in Korea. 44 |

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Jinhai Heavy to Build SinOceanic’s Eco Containerships China: On behalf of foreign interests, SinOceanic Shipping ASA has entered into a contract with Jinhai Heavy Industries, China, to build 10 x 8800 TEU state-of-the art super eco containerships for delivery from mid 2015. Upon delivery, all vessels will enter into long term, fixed charter parties. The vessels will be built to meet the latest IMO CSS Code for container vessels, where keels are laid on or after 1 January 2015.

The total transaction, consisting of the combined value of the vessels and the charter parties, has a total gross value of approximately USD 2.4 billion. SinOceanic Shipping ASA will provide management services during the building process and after delivery of the vessels. The company will receive a customary annual management fee for the services rendered.

YGS to Build Eitzen’s Handysize Carriers Norway: Eitzen Eco Bulk, the Norway-based company, has ordered nine handysize dry bulk carriers from Chinese Yangzhou Guoyu Shipbuilding (YGS). The significant order is worth around USD 21 million per carrier. The 38,000 dwt carriers, will be based on DNV and China’s Shanghai Merchant Ship Design & Research Institute’s (SDARI) co-developed ‘Green Dolphin’ design. In addition, the design in question aims at reducing bunker fuel consumption by about five metric tonnes a day and aims to be maintenance–friendly, with high operational flexibility.

Greek Shipowners Place Orders for 142 Newbuildings at Chinese Shipyards Greece: Greek Shipping Minister, Kostis Moussouroulis revealed in his recent official visit to China that the Greek shipowners had placed an order for 142 newbuildings at Chinese shipyards. The Minister said that, the order, which was signed last month, represents 60 per cent of all Greek newbuilding orders placed worldwide. Greek Shipping Minister, Kostis Moussouroulis

Greek Prime Minister also met with the Chinese President Xi Jinping and they agreed on further cooperation since the shipbuilding and shipping industries are the most important sectors for economic and trade cooperation between the two countries. President Xi Jinping highlighted that China is looking forward to closer cooperation between the two countries on trade, shipping, culture and tourism.


NEWS: FOREIGN

Bahri Receives RoCon Vessel Dubai: The National Shipping Company of Saudi Arabia (Bahri) has received its first newly built Roll-on/ Roll-off Container (RoCon) vessel from Hyundai MIPO on 5 th February 2013 in South Korea. This is the first of six sophisticated vessels that Bahri contracted Hyundai MIPO to build it in order to replace the existing vessels and expand in general cargo segment. Bahri is an internationally renowned shipping conglomerate specialised in the transportation of oil & gas, chemicals, general cargo and dry bulk. It also services the rapidly growing petroleum, chemical and infrastructure sectors of the Kingdom. These new vessels are built at Hyundai’s MIPO Dockyard in Korea for a price of USD 70 million for each vessel which have been designed for ultimate efficiency and performance. On this occasion, Bahri CEO, Engr. Saleh Al-Jasser said: that the arrival of these new world-class vessels confirms Bahri’s commitment to operational excellence and its capability to provide its service with high efficiency and strengthen its position as a leading service provider in the logistics & shipping industry.

Shipbuilding Ordering Activity Back to Normal Greece: According to the latest report from Clarkson Hellas, the shipbuilding market continues to deliver a steady stream of enquiry and concluded business. The shipbroker said that there remains a continued drive of investment into Dry, with speculators taking advantage of a relative stability in values over the last 12 months or so adding credibility to current market levels and a view that we are firmly at the bottom of the market. With berths now being absorbed through 2014

and into 2015, capacity is not as abundant as buyers would like and consequently we are starting to see certain sectors of the market starting to edge pricing up. In wet, the products story remains resilient, and the MR and LR2 sectors of the market continue to demonstrate good levels of enquiry. Certainly a more active opening to the year than 2012- how sustainable this will be remains to be seen and no doubt that whatever business is being concluded continues to be at challenging levels for shipyards to accommodate.

Essar to Expand in Africa Zimbabwe: The Essar group is planning to set up a 10-million tonne port in Mozambique, Africa, at a cost of USD 275 million. The port project work is to be undertaken by the group’s African subsidiary, Essar Africa Holdings, and is not a part of the group’s Essar Ports. This port will facilitate exports from Zimbabwe Iron and Steel Company (ZISCO), a Zimbabwe-based company it acquired in 2010. Essar spent USD 750 million for a 56 per cent stake in the company. It planned to invest yet another USD 400 million (Rs 2,176 crore) into the company and get it back to production. The operating levels of the plant were very low. This is apart from developing the vast iron deposits of the company. While working on the blue print of ZISCO’s revival plan, Essar planned to bring back some iron ore to its Gujarat steel plant, if there was an excess after feeding ZISCO and the local market.

BIMCO Optimistic on Container Trade Outlook UK: The freight rate lifts that have been experienced on the trans-Pacific and Far East to Europe trades in recent weeks may bring about rather decent average full-year rates, according to report from BIMCO on the container shipping segment. At the beginning of 2010 and again in 2012 rates went up from low levels to double up and quadruple up, bringing around a freight rate level that left room for subsequent rate slides throughout the rest of the year within healthy distance of break-even levels. 2011 was very different, whereas 2013 has started along the 2010/2012 positive lines. Most shipping lines have announced adjustments to the freight rate levels of Far East to Europe in March. Despite the low-season

timing, BIMCO holds the opinion that an upward adjustment is likely to see the light. As the market is growing only very slowly, a fight for market share is unattractive and focus seem to be fixed on profitability, the report said. Meanwhile, by the start of February, BIMCO noted that the amount of idle containership tonnage went down slightly to 754,000 TEU (4.6 per cent of total containership fleet). Going forward, BIMCO expects idling of tonnage to stay rather flat as the higher rates induce no one to idle further tonnage in spite of the fact that we are heading into a seasonal low in the coming months.

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Your Radar to Shipping, Marine & Ports World

Vol - 5 Issue - 4 • FEB - MAR 2013 • MUMBAI • ` 150

SMM India

SUBSCRIPTION FORM


MARINE TECH

HOS Orders MPSVs

L

eevac Shipyards Jennings LLC has signed contracts with Hornbeck Offshore Services, LLC, (HOS) for the construction of two STX Marine SV 310 Multi-Purpose Supply Vessels (MPSV), 12,070 BHP diesel electric powered MPSV’s measuring 302 x 76 x 26-ft. The SV 310 is described by the shipbuilder as a complex vessel design with unique characteristics integrated into the design by Hornbeck Offshore to meet a number of subsea inspection, repair and maintenance (IRM) support and heavy lift requirements. It will feature a 250-ton crane provided by Cargotech, and will be powered by four Caterpillar Model 3516C Tier 3 IMO II Marine variable speed diesel propulsion generator sets rated at 2250 kW each. The propulsion drives and thrusters are being provided by Schottel. GE Power Conversion is the vendor for the integrated electrical system, power management, vessel control, DP-2 systems, machinery alarms, power and propulsion systems. Marine Interior Systems has been selected for the joiner work and Marine Aluminum will be providing the helideck system rated for a Sikorsky S-92 helicopter.

SV 310 is described by the shipbuilder as a complex vessel design with unique characteristics integrated into the design by Hornbeck Offshore to meet a number of subsea inspection, repair and maintenance (IRM) support and heavy lift requirements.

SV 310 Multi-Purpose Supply Vessel

Deepflight Super Falcon Submersible to Explore Ocean Depths DeepFlight Super Falcon submersible, a two-person winged submersible craft, is made of positively buoyant with a fail-safe return to the surface; launchable from ship or shore.

Hawkes Ocean Technologies said that Dietrich Mateschitz, cofounder of the energy drink company Red Bull, has ordered a DeepFlight Super Falcon submersible, a two–person winged submersible craft that will be delivered to Laucala Island Resort, on Mateschitz’ private island in Fiji. “We are delighted to be building a Super Falcon submersible for Mr. Mateschitz,” said Graham Hawkes, founder of Hawkes Ocean Technologies. “It’s very fitting that the co-founder of Red Bull, a company iconic with adventure, will now be connected to sub-sea flight.” “Positively buoyant with a fail-safe return to the surface; launchable from ship or shore; designed for comfort and 360 degree viewing from acrylic domes; and uniquely capable of sub-sea flight, Super Falcon is the culmination of all our work,” said Adam Wright, President, Hawkes Ocean Technologies.

Hawkes’ DeepFlight Super Falcon Submersible

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MARINE TECH

Rolls-Royce Delivers Naval USV & RHIB Launch/Recovery Systems

USV & RHIB Launch/Recovery Systems have been retrofitted aboard frigates and utilise a custom articulating davit with a telescopic boom.

R

olls-Royce, the global power systems company, has delivered two launch and recovery systems for unmanned surface vehicles (USV) and manned Rigid Hull Inflatable Boats (RHIBs) to an international navy. These systems have been retrofitted aboard frigates and utilise a custom articulating davit with a telescopic boom. Jeff Langsner, Managing Director – Rolls-Royce Naval Marine Canada (RRNMC) said: “This contract highlights Rolls-Royce is the supplier of choice for marine vehicle launch and recovery systems. Our customers recognize our ability to provide a high-quality product within cost and schedule constraints.” Operating from facilities in Dartmouth, Nova Scotia and Peterborough, Ontario, Rolls-Royce is an industry leader in the design and supply of specialised naval sensor handling systems, unmanned marine vehicle handling systems, specialised deck machinery, and advanced data collection systems including the Moving Vessel Profiler (MVP).

Rigid Hull Inflatable Boat

Dolphin Unveils New Deepwater Drillship

Aberdeen-based Dolphin Drilling Ltd, one of the oldest and largest independent drilling contracting companies in the North Sea, has attended a naming ceremony recently to unveil the identity of a brand new state-of-the-art drillship to be operated by the company. The ceremony for the 751 ft-long ultra deepwater asset – now known as Bolette Dolphin – took place at the Hyundai Heavy Industries Shipyard in Ulsan, South Korea, where it is currently being built.

Dolphin’s Deepwater Drillship, the 751 ft-long ultra deepwater asset – now known as Bolette Dolphin, is equipped to operate in 12,000 ft of water with a maximum drilling depth of 40,000 ft.

The drillship, designed for efficient deepwater drilling and completion activity, will start work for Anadarko Petroleum Corporation later this year and has been contracted for a four year international campaign. Graeme Murray, Managing Director at Dolphin Drilling Ltd, who attended the ceremony with his colleagues, commented: “The naming ceremony of the Bolette Dolphin hails a key step in the company’s strategic development with a deep water focus, directly in line with industry demands as exploration and production continues to push to ever deeper depths. The ship marks a significant investment for the Group and will be one of the most advanced deepwater drillships in the market.”

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Bolette Dolphin - Dolphin’s New Deepwater Drillship.


MARINE TECH

Aker Solutions Delivers Åsgard Template to Statoil

A

ker Solutions has delivered the steel frame for the world’s first subsea gas compression facility to be installed at the Statoil-operated Åsgard field. The installation, set to come on stream in 2015, will enable the recovery of an additional 280 million barrels of oil equivalents. The 1,800-tonne steel frame will in the next two weeks be installed on the Åsgard field seabed to form the base of the world’s first subsea gas compression facility. It is the largest template manufactured by Aker Solutions, measuring 74 metres in length, 45 metres in width and 26 metres in height.

Åsgard subsea gas compression facility, the world’s first subsea gas compression facility, will boost declining gas pressures at the Midgard and Mikkel satellite fields in the Norwegian Sea.

“The Åsgard project is a game changer for the entire industry,” said Per Harald Kongelf, Regional President for Aker Solutions in Norway. “The technology has the potential to change offshore gas field developments worldwide and I am very pleased that we have delivered this part of the project on schedule.” The Åsgard subsea gas compression facility is set to go on stream in 2015 after two 11.5-megawatt compressors are installed. The facility will boost declining gas pressures at the Midgard and Mikkel satellite fields in the Norwegian Sea. The project is operated by Statoil and delivered by Aker Solutions.

Åsgard Subsea Gas Compression Facility

Caley Develops Deepwater Lowering System for Gorgon Project DLS, developed by Caley Ocean, comprises two double drum traction and storage winches and fully redundant controls, all mounted on an integrated grillage structure for rapid mobilisation onto the pipelay and heavy lift vessel Sapura 3000.

Deepwater Lowering System (DLS)

Caley Ocean Systems has been awarded a contract by Subsea 7 to design, manufacture and supply a deepwater lowering system (DLS), will be deployed by Subsea 7 on the Chevron-operated Gorgon project, located off the northwest coast of Western Australia, to lower subsea structures weighing up to 950 Te in water depths in excess of 1,300 m. The DLS comprises two double drum traction and storage winches and fully redundant controls, all mounted on an integrated grillage structure for rapid mobilisation onto the pipelay and heavy lift vessel Sapura 3000. The system will connect to a deepwater lowering beam (DLB) and connector. Each set of winches has its own dedicated hydraulic power unit for optimum control. The range of equipment to be handled by the DLS in the Gorgon and Jansz-Io fields will include subsea structures and foundations and heavy lift spools. “The lifting requirements for oceanographic and offshore are very different”, said Gregor McPherson, sales director, Caley Ocean Systems. “For oceanographic systems, great depths are involved up to 10,000m but the payload is small - often amounting to only a few tons, compared with the offshore industry where the depths are less but the payloads much higher. The dual winch DLS system is designed to provide optimum load handling and speed of deployment.

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ď ›BOOK REVIEWď ?

Bridge Resource Management: Introduction and Training for Merchant Marine Crews [Paperback] Author Pages Price

: Capt Craig V Randall : 56 : USD 26.90 Book Description: This course is designed to be a comprehensive introduction and review of current Bridge Resource Management (BRM) techniques for ships officers and crew. It presents the latest BRM operating practices and teamwork management skills using the principles of Behavioral Markers and Non-Technical skills evaluation to ensure the safety of the ship, its personnel, cargo, the protection of the environment, and to satisfy the requirements of the STCW.

Safety and Security at Sea [Paperback] Author Pages Price

: D S Bist : 262 : USD 57.90

Book Description: Safety and Security at Sea is concerned with the safe operation of ships and consequently with preventing errors and oversights. This book contributes to safety where it is most effective - right at the site of work, on board the ship itself. It is here, indisputably, that it will prevent accidents and save lives. It translates theory into practice besides covering several new and current topics. This book is aimed at every deck officer - at every rank and on all ships.

Maritime Transportation: Safety Management and Risk Analysis [Hardcover] Author Pages Price

: Svein Kristiansen : 252 : USD 93.86 Book Description: Shipping and marine transportation is a highly regulated global industry. With heightened public awareness of the environmental and human cost of marine accidents, and tighter legislation from governments and international bodies on ships and shipping operations, the safe and efficient operation of ships is a priority for all ship builders, owners and operators. This book is the essential guide to the safety of maritime transportation for anyone in the field. The book covers all aspects of maritime risk and safety from engineering and operational perspectives, as well as regulatory and health and safety requirements. It addresses the needs of both professionals and students working in the related fields of shipping management, ship design and naval architecture and transport management, as well as fields including safety management, insurance and accident investigation.

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