Tuesday, May 25, 2010
Malaysian tanker, bulk carrier collide in Singapore Strait Read more: Malaysian tanker, bulk carrier collide in Singapore Strait http://www.nst.com.m
Tuesday, May 18, 2010
“The acquisition of 50% interest in VTTI is a key element in developing the company's global tank terminal business, in line with MISC's strategy to expand its service offerings across the value chain,” president and chief executive officer Amir Hamzah Azizan said in the statement yesterday.
VTTI owns and operates a network of petroleum product terminals in 11 countries with a gross combined capacity of nearly six million cu m.
This gross combined capacity is set to expand to nearly seven million cu m by 2013.
Its major terminals are located in Amsterdam and Rotterdam in the Netherlands, Fujairah in the United Arab Emirates and Port Canaveral in the US.
VTTI is a wholly-owned unit of Netherland-based Vitol Group, one of the largest independent energy trading companies in the world.
MISC said the tank terminal business was an “attractive investment that will provide stable returns”.
The company's participation in the business would give it the edge over traditional shipping competitors through marketing opportunities and cross selling in both business segments.
“Upon completion of this sale and purchase transaction, MISC and Vitol will enter into a shareholder agreement to reflect the long-term relationship and strategic cooperation between MISC and Vitol in relation to their interest in VTTI,” the statement said.
MISC owns and operates more than 100 vessels, and is the leading energy transporter in the world in the liquefied natural gas, petroleum and chemical industry.
MISC and Vitol first entered into a partnership last year when the two companies started a joint venture to build and operate an oil blending terminal in Tanjung Bin, Johor. The 841,000 cu m oil blending terminal was scheduled to commence operation in 2012.
With the acquisition of the 50% stake in VTTI, the joint venture deal will be terminated and MISC's shares in the Tanjung Bin joint venture called Asia Tank Terminal Ltd will be sold to VTTI Tanjung Bin SA at cost.
The sale and purchase agreement to acquire the 50% stake in VTTI was signed yesterday in Kuala Lumpur.
MISC was represented by Amir Hamzah, while Vitol was represented by its president and CEO Ian Taylor.
Wednesday, May 12, 2010
Stressing that the suggestion to move the port had only been a proposal during a recent PPC dialogue, she reassured port users and investors that the port was set to stay in Penang.
“Moving a port is not like moving house. The downstream-related industries and operations will all be affected.
“Because of Penang’s airport and seaport, we have attracted a lot of investors and the manufacturing players, industrial players, multi-national companies and logistics suppliers are all here,” Tan said at a press conference at Bangunan Sri Weld yesterday.
“The chain of industry has been here so long. How are we going to move them? That is not economically viable.”
Tan said large amounts of funds had already been committed to upgrading the Penang Port, including RM1.1bil to further develop it to a main line port under port operator Penang Port Sdn Bhd’s 2007-2012 business plan.
She added that about RM300mil had been dedicated to re-develop the Prai Wharf while another RM62mil had been spent to complete the Penang International Cruise Terminal.
She said the 224-year-old port was an important part of the Northern Corridor Economic Region as Penang was a logistics hub and would play an even bigger role once the Ipoh-Padang Besar railway double-tracking project was completed at the end of 2013.
She said the proposal of relocating the port was brought up by the Penang Chinese Chamber of Commerce in a written question at a PPC dialogue with port users last Thursday.
“They are concerned that the North Channel is subjected to heavy siltation and that capital dredging is continually required to maintain the needed draft. Their question was also taken up by the Penang Freight Forwarders Association during the dialogue.
“Everyone has a right to ask questions and air their opinions but Transport Minister (Datuk Seri Ong Tee Keat) never made any statement that the port would move,” Tan said.
She added that the Federal Government had put capital dredging in the North Channel as a top priority under the 10th Malaysia Plan where the draft would be increased to 14.5m to accommodate larger ships at the port.
PPC currently spends RM30mil in maintenance dredging every year to keep the draft at 9m to 11m while RM350mil in capital dredging is needed every 10 years, Tan said.
Source: Star Property
Sunday, May 9, 2010
Northport (Malaysia) Bhd, which recorded a 26% jump in volume for the first quarter of this year against the same period last year, is positive of a further uptrend in its business.
For the first three months of this year, Northport’s volume hit 779, 867 twenty-foot equivalents (TEUs).
Northport managing director Datuk Basheer Hassan Abdul Kader said the port recorded a 30% growth in transhipment containers, which reflected a strong resurgence in regional economies.
“We are confident of a sustainable growth in container volume at Northport, based on a positive forecast of the country’s economy and also on recovery trends in the shipping market,” he said in a statement.
Basheer added that recent developments in the fleet deployment of shipping lines – which included restoration of suspended services, injection of additional ships and changes in their service strings – mirrored the renewed confidence in the shipping markets.
“Based on these demands, Northport aims to chart a cargo volume increase of between 10% and 15% for this year against that of last year.
“The positive forecast is also applicable to our non-containerised cargo business that recorded a 40% growth in the first quarter of this year compared with a year ago,” he said.
Thursday, May 6, 2010
Tuesday, May 4, 2010
Monday, May 3, 2010
FOR those who regard the smashing of a champagne bottle as a tragic waste, the problems facing the world’s shipbuilders are excellent news. It takes such a long time to construct huge ocean-going container ships, bulk carriers and oil tankers that the vast shipyards of South Korea, China and Japan will still be cracking bottles of bubbly over newly launched ships for a couple of years yet. But once these vessels, ordered in the boom before the financial crisis, are in the water, the course ahead looks rocky. Oddly, Europe’s shipyards, although still storm-lashed after 30 years of low-cost competition from Asia, seem to face a slightly brighter horizon.
Fresh orders for the world’s shipyards are at a low ebb. Last year they were more than 80% lower than in 2007, when sky-high freight rates and cheery economic forecasts encouraged shipping companies to scramble for new vessels. The subsequent recession in the rich world sent shipping rates tumbling. A swift rebound is unlikely: despite more scrapping and some cancellations, hundreds of ships are poised to hit the oceans this year.
Asia’s shipyards, streamlined and efficient, concentrate on building large, standardised ships. These are the sort in greatest oversupply. South Korea’s shipyards won over half of global orders for new ships in the first quarter of 2010, but they were worth just $2.2 billion. In 2008 Korean yards won orders worth $32 billion. Hyundai Heavy Industries, one of four big Korean shipbuilders, has not won a single order for a ship since late 2008.
European shipbuilders are suffering from a dearth of new orders too. The Odense shipyard owned by A.P. Moller-Maersk, one of the world’s biggest shippers, has an illustrious history: it produced the world’s biggest container ship. But cheap Asian competition for this type of vessel has holed it below the waterline. It will close in 2012.
Europe’s shipmakers are turning to national governments and the European Union for help, claiming that their industry is close to collapse. In early April representatives from nine EU countries called for an emergency programme to support the industry. Shipyards want help in gaining access to credit lines and soft loans, as well as rules to promote greener ships. This would support them until shipping finance recovers and hesitant customers regain faith in the world economy.
Yet the restructuring forced by low-cost Asian competitors has left Europe’s shipyards with some advantages. Their revenues of €30 billion-40 billion ($40 billion-53 billion) a year come mainly from niche markets which are not suffering from as much overcapacity as the mainstream.
Cruise ships are a particular speciality, and the market is growing. Four orders have been placed with European yards this year, compared with one in 2009. Ferries, another area of European dominance, are also in demand, and ageing ferry fleets in the Mediterranean are due for replacement soon. The offshore wind farms sprouting around the continent provide another opportunity. Europe’s shipmakers are adept at designing cable-laying ships and other service vessels. And as oil firms are forced to drill in ever deeper waters, ships suited to the task of towing and maintaining new rigs will be needed.
Pressure to make ships greener will also favour European shipyards. The International Maritime Organisation is discussing regulations that may force ships to belch out less carbon dioxide, and has introduced tighter limits on other pollutants. Europe leads in this type of technology, too. European shipmakers will also benefit from plans to encourage greater use of the continent’s inland waterways to ship goods instead of hauling them by road. If they can weather the current storm, Europe’s shipyards may yet resound again to the smashing of bottles.