APM Terminals has changed tack in its attempt to persuade the Brazilian government to grant it a concession extension at its Port of Itajaí container terminal.
Previously, it had sought an extension based on the investment that it had made there. However, following a suggestion from the Attorney General’s Office, it is now seeking to justify this as a means of recovering losses brought about by unexpected problems that it has encountered, mainly floods in 2008 and 2011.
APM Terminals acquired concessionaire Teconvi when it had 19 years to run on its concession, with the possibility to renew this for a further three years to the end of 2022. However, the company believes it will be impossible to sufficiently recoup its subsequent investment in the seven years remaining to it. www.hellenicshipp...
A terminal is to be constructed at the Tema Harbour to facilitate the import and export of agricultural products. The project, to be funded by Super Maritime, a private local company, will be undertaken in partnership with the Ghana Ports and Harbours Authority (GPHA).
Work on the project, to be executed at a cost of $10 million, is expected to begin in January 2016 and completed within eight months.
Crowley Breaks Ground On $48.5 Million Pier And Terminal Construction Project
Crowley Puerto Rico Services, Inc. announced that it has broken ground on a $48.5-million construction project for a new pier at its Isla Grande Terminal in San Juan, Puerto Rico. The project includes the development of a new 900-foot-long, 114-foot-wide concrete pier and all associated dredging needed to accommodate Crowley’s two new liquefied natural gas (LNG)-powered, Commitment Class ships.
Recent meltdown in steel scrap prices, coupled with decline in rupee value against the dollar, seems to have taken the wind out of the sails of ship-breakers in the country.
The 12-month period saw domestic steel demand muted, resulting in a 23 per cent decline in average realisation on scrap steel (a key raw material in secondary steel making) from ₹26,504 per tonne in October 2014 to ₹20,398 in September 2015, said credit rating agency Crisil in a note on Monday.
“The price of scrap steel, which was declining between 2 and 4 per cent on a monthly basis, plunged nearly 20 per cent after China moved to de facto devalue the yuan in August 2015,” the Crisil note said.
The industry operates on a short cash cycle. A small ship is dismantled in six months. However, scrap is sold every month. Given the sharp decline in the price of scrap steel since August, the industry, despite its operating discipline, is estimated to have taken a knock of ₹120 crore.
Around 9 per cent depreciation in rupee in the 12 months to September 30 – touching ₹66 a dollar from ₹61 a dollar seen in October 2014, has added to the woes. Today it is ruling ₹66.02 a dollar. The industry in the last past three fiscals incurred about ₹1,200-crore loss in foreign exchange.
As a practice, ship-breakers buy condemned vessels based on letter of credit in foreign currency, which typically has a maturity period of six months. Indian ship-breakers, however, do not hedge foreign currency exposure, as the hedging cost is perceived to have additional depressing impact on their thin operating margin of 4-5 per cent.
Source: The Hindu Business Line
Port of Hamburg reports downturn in seaborne cargo throughput in first nine months
Even Hamburg as Germany’s largest universal port clearly felt the effects of weakness in Chinese foreign trade plus the steep downturn in trade with Russia during the first nine months of the year. Totalling 104.6 million tons, seaborne cargo throughput in Hamburg was 4.8 percent lower than last year. Even if bulk cargo handling in the first three quarters totalled 34.3 million tons and was therefore once again substantially higher, being up 8.7 percent, this could not fully offset the decline in general cargo throughput. Container throughput in the first nine months totalled 6.7 million TEU (20-ft standard containers), down by 9.2 percent. It proved impossible to maintain the previous year’s strong growth.
The downward trend in container traffic with Russia appears to have ceased and stability to be setting in. In the first nine months, at 323,000 TEU handling of boxes for Hamburg’s third most important partner for container traffic was down by 36 percent. Along with a weak rouble, the low oil price and the generally continuing economic recession in Russia were the main causes of the fall apparent in container throughput. “The downturn of container traffic with Russia of the order of more than one-third hit us especially hard because the bulk of all containers were transhipment containers that were loaded on to, or discharged from oceangoing containerships. This second step in handling per box and per direction of transport from feedership on to the oceangoing containership or the reverse is now only occurring to a much lesser extent, a fact also reflected in the overall statistics for containers handled in Hamburg. A recovery can hardly be expected in the near future. We assume that container throughput with Russia is now stabilizing and that perhaps the first signs of an upward trend will be apparent next year,” said Axel Mattern, Executive Board Member of Port of Hamburg Marketing (HHM). “These very severe fluctuations in trade with Russia are still very familiar to us as a result of the worldwide economic and financial crisis. We shall also survive this drop. The good contacts of our port representative office in St. Petersburg and our dedicated port marketing in Russia form a splendid basis for the desirable upswing in foreign trade,” added Ingo Egloff of Port of Hamburg Marketing’s Executive Board. More at www.hellenicshipp...
At the seminar, “Haiphong Mega Infrastructure Cluster-Gateway of the North of Vietnam”, held last week by the Haiphong People’s Committee and Dinh Vu Industrial Zone JSC, Le Thanh Son, Deputy Chairman of the committee, said that the combination of the mega infrastructure projects about to be constructed in the city, and the local government’s determination to improve the investment environment would turn Haiphong into an ideal location for local as well as international investors.
“The city is aiming to optimise its potential, advantages, and opportunities to make a breakthrough and become a hub of industry and services with superior competitiveness, turning it into a green, civilised, and modern port city. Foreign investment attraction plays a very important role in the achievement of this target,” said Son.
Mega infrastructure projects being carried out in the city include the Haiphong international gateway port, the Cat Bi international airport, the Tan Vu-Lach Huyen bridge, and the Hanoi-Haiphong expressway. The combined investment capital required for these projects is $4.1 billion.
The Tan Vu-Lach Huyen road and the sea-crossing bridge which connects Haiphong with the Lach Huyen port is already 40 per cent completed, and is expected to be operational by May 2017. As of September, the 105-kilometre Hanoi-Haiphong expressway was 70 kilometres towards its final destination, and the remainder is due to be finished by December this year.
Meanwhile, the Cat Bi international airport, if completed – as scheduled – in the third quarter of 2016, will be able to serve six million passengers per year. Direct passenger flights from Haiphong to Singapore, Thailand, Japan, and South Korea are planned in the first phase.
Adjacent to the deepest port in the north of Vietnam, accessible for 100,000 dead weight tonnage vessels, an airport with international and domestic flights, and only one hour from Hanoi by car, Haiphong is set to become a transportation hub, according to Son. www.hellenicshipp...
New deal brings Australian workers back to the docks 100 days after mass sackings
Dockers sacked by global network terminal (GNT) operator Hutchison Ports Australia (HPA) are set to return to work after an agreement was reached between the Maritime Union of Australia (MUA) and HPA management.
It’s been 103 days since 97 workers were terminated in Brisbane and Sydney, many via text and email. It was strongly felt that the company was using automation plans as a union busting tool.
Now, following several rounds of intense negotiation, an agreement has been made which includes a substantial voluntary redundancy package for workers.
ITF president and national secretary of the MUA Paddy Crumlin led the talks with HPA at the Fair Work Commission. He said the new agreement was testament to a more functional and mature approach to industrial relations than the company’s initial attempts to restructure their operations.
Crumlin said: “Workers are essential to the productivity and good health of any successful enterprise, and have a social and legal right to be treated with respect and decency regardless of commercial cycles. www.hellenicshipp...
Cosco Pacific and China Merchants complete acquisition of Turkish container terminal
China Merchants Group has announced that together with Cosco Group it has signed a share transfer agreement with shareholders of Kumport in Turkey.
Under the agreements, the joint venture established by the two groups will acquire about 65.8% equity shares in Kumport for about for $939m.
Cosco Pacific, China Merchants Holdings International and CIC Captial jointly set up a joint venture in September for the acquisition of the equity.
Cosco Pacific said the board believes that Kumport Terminal, which is the third largest container terminal in Turkey, has good development prospects given the potential business synergy between Kumport Terminal and the company’s existing investment in Piraeus Container Terminal in Greece. splash247.com/cos...
Khalifa Port Wins “Port of the Year Award” of Maritime Standard Awards 2015
Khalifa Port, the flagship of Abu Dhabi Ports―the master developer, operator and manager of ports and industrial zones in the Emirate―has won “Port of the Year” Award of the Maritime Standard Awards.
Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, received the award at the Maritime Standard Awards night held in Dubai on Monday, in the presence of dignitaries from across the Middle East and Indian Subcontinent.
“This esteemed award makes me proud. I dedicate this honour to the wise leadership of Abu Dhabi, whose guidance and support always help us a great deal in our journey towards excellence,” said Captain Al Shamisi. www.marineinsight...
North Korea to connect Russian coal to South Korea-bound ships
Russian coal is to be transported to South Korea as part of a three-way logistics project that takes a detour at a rarely visited transfer point: the North Korean port city of Rajin.
Shipments of Russian coal to South Korea previously have been delivered using the circuitous route in November 2014, and last April. On Tuesday, the three countries are expected to cooperate on the third and final trial shipment of a pilot program, and based on the results, South Korea is to decide whether or not to pursue the connectivity project, Newsis reported.
Major South Korean companies are involved in the logistics project, including the steelmaker POSCO, Hyundai Merchant Marine and national railroad operator KORAIL. Company officers are to travel to Rajin, North Korea from Nov. 17-20 to inspect the container ships, their berthing capacity and to check the conditions of North Korean railways and roads since August, when floods devastated the region.
Yonhap reported the team of 20 South Korean officers had left Vladivostok by train, and was expected to cross the Russia-North Korea border early Tuesday.
The team is expected to stay in North Korea until container ships carrying 120,000 tons of bituminous coal and bottled water from China leave the docks for the South Korean port city of Busan. Two 45,000-ton bulk carriers would be used to make the trip three times from Rajin to Busan, and an 11,000-ton container ship carrying 10 containers would also be part of the trial.
In the first trial shipment in 2014, 45,000 tons of coal were shipped to South Korea, and another 140,000 tons were shipped in the second trial. www.upi.com/Top_N...