DAILY COLLECTION OF MAR ITIME PRESS CLIPPINGS 2013 –...

DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2013 – 059

Distribution : daily to 25350+ active addresses 28-02-2013

Number 059 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Thursday 28-02-2013

News reports received from readers and Internet News articles copied from various news sites.

The Dutch A 804 PELIKAAN outbound from Willemstad (Curacao)

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EVENTS, INCIDENTS & OPERATIONS

25-02-2013 : The SAIPEM 7000 passing Maassluis enroute to Rotterdam-Europoort – Photo : Kees van Schie ©

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New pipelay deal for Subsea 7 Subsea 7 has announced the award of a pipelay and subsea installation contract valued at approximately US$160 million from Statoil at the Oseberg Delta 2 field, approximately 130km west of Bergen in the North Sea.

The contract includes the design, fabrication and installation of two insulated rigid production pipelines totalling 10km; the engineering, procurement, construction and installation of two flexible gas injection lines totalling 9km; the installation of two umbilicals totalling 16km; and manifolds installation and tie-in work.

The pipeline production will take place at Subsea 7’s spoolbase at Vigra, Norway. Project management and engineering will commence immediately at Subsea 7’s Oslo office with offshore operations commencing in early 2014. Source : Offshore shipping online

The COASTAL LIBERTY navigating the Oosterschelde – Photo : FLYING FOCUS luchtfotografie

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BP goes on trial for Gulf oil spill disaster The long-awaited trial of BP for the biggest US offshore oil spill has begun, with governments, businesses and individuals blaming the company for the 2010 disaster that killed 11 rig workers and spilled four million barrels of oil into the Gulf of Mexico.

"The primary fault for this disaster lies with BP," Assistant US Attorney Mike Underhill said at the start of the trial over legal culpability for the Deepwater Horizon spill.

The trial at the federal district court in New Orleans will be overseen by Judge Carl Barbier with no jury.

Lawyers for other plaintiffs also slammed executives for BP, as did attorneys for two of BP's main co-defendants. BP's lawyer was due to respond later. BP must show its mistakes do not meet the legal definition of gross negligence required for the highest amount of damages. BP has already spent or committed US$37 billion on cleanup, payouts, settlements and fines.

Beyond that, potential liabilities stretch into the tens of billions of dollars if Barbier determines BP or the other defendants were grossly negligent.

Oil came ashore from Texas to Florida, threatening livelihoods and state economies dependent on seafood and tourism, so the list of plaintiffs is long. Most observers still expect the case to be settled before the trial results in a verdict.

Underhill said that less than an hour before BP's long-troublesome Macondo well ruptured and caused an explosion, BP's top well site leader on the rig called an engineer in Houston to discuss a critical pressure test that indicated problems.

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Company officials did not stop the operation and "11 souls had 47 minutes to live the rest of their lives," Underhill said in his opening arguments after a weekend of talks produced no last-minute settlement.

Underhill said the accident could have been avoided if onshore engineer Mark Hafle and well site leader Don Vidrine on the rig had done their jobs.

Vidrine also faces criminal charges in the disaster, as does Robert Kaluza, the other highest-ranking supervisor aboard the rig before the disaster.

Jim Roy, an attorney for other plaintiffs suing well owner BP, rig owner Transocean, cement services provider Halliburton Co and others, said BP executives at the highest level felt pressure to push output to

the limit.

"Production over protection. Profits over safety," said Roy, who represents plaintiffs who did not take part in an US$8.5 billion settlement BP struck last year.

Roy also said Transocean opened the door to disaster with poor staff training and poor maintenance of seabed equipment, while Halliburton made substandard cement to plug the well.

Transocean's lawyer, Brad Brian, also came out swinging against BP, saying rig workers trusted the oil company and died betrayed.

Brian said the inaction following the phone call showed Hafle and Vidrine did what they and others at BP had been doing for two months in the face of a risky well: "They did nothing."

He said Hafle spoke for eight minutes with Vidrine, discussed drill pipe pressure and improper alignment of a critical hose, hung up, "and then stayed safely onshore." Brian noted they made these decisions despite the fact that BP employees called Macondo the "well from Hell" in emails.

Halliburton's lawyer, Don Godwin, made similar arguments about BP but also said Transocean's rig crew should have shut in the well at the first sign of trouble. "Now is when they want to pass the buck and blame my client for their misdeeds," he said.

Barbier, the judge overseeing the trial, has deep roots in the Gulf Coast. Born in New Orleans in 1944, he attended Southeastern Louisiana University and Loyola University New Orleans School of Law.

He was a lawyer in private practice for many years in New Orleans before President Bill Clinton tapped him for the federal bench in 1998. The judge, who has also handled several high-profile cases stemming from Hurricane Katrina, postponed the trial date by more than a month.

An army of media have descended on New Orleans to cover the trial, and the delay avoided a clash with the NFL Super Bowl in New Orleans on February 3 or the city's Mardi Gras festival on February 12.

The fact that the case has not yet settled surprises many. "I never thought that they intended to try this case and really cannot afford to do so because the exposure is too potentially catastrophic," said Blaine LeCesne, a professor at Loyola University College of Law in New Orleans.

The trial's first phase focuses on how much each company is to blame and the degree of negligence.

Luther Strange, Alabama's attorney general, said he would seek to show all three companies had acted with "gross negligence and wilful misconduct." "We will ask the court at the end of this trial to rule that all three - BP, Transocean, and Halliburton - are liable for punitive damages to the state of Alabama," Strange said.

Simple negligence involves mistakes. Gross negligence involves reckless or wilful disregard for human and environmental safety and is difficult to prove, experts say. BP has consistently denied it was grossly negligent.



Louisiana Attorney General Buddy Caldwell said his state was suffering with more than 212 miles (341km) of coast still being polluted by oil "less than 30 miles 48km) from the door of this courthouse." Any punitive damages would come on top of billions in potential fines under the Clean Water Act.

The payout by BP so far included a record US$4.5 billion in penalties, and a guilty plea to 14 criminal counts to resolve charges from the Justice Department and civil claims from US securities regulators.

BP has sold assets to help cover its spill-related costs, including its older, smaller Gulf of Mexico operations.

The second phase of the trial, expected to start in September, will focus on the flow rate of the oil that spewed from the well. The third phase in 2014 will consider damages. Source : Reuters

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The KESTREL departed with the AMT DISCOVERER from Rotterdam- Photo : Frans de Lijster ©

New pipelay deal for Subsea 7 Subsea 7 has announced the award of a pipelay and subsea installation contract valued at approximately US$160 million from Statoil at the Oseberg Delta 2 field, approximately 130km west of Bergen in the North Sea. The contract includes the design, fabrication and installation of two insulated rigid production pipelines totalling 10km; the engineering, procurement, construction and installation of two flexible gas injection lines totalling 9km; the installation of two umbilicals totalling 16km; and manifolds installation and tie-in work.


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The pipeline production will take place at Subsea 7’s spoolbase at Vigra, Norway. Project management and engineering will commence immediately at Subsea 7’s Oslo office with offshore operations commencing in early 2014. Source : Offshore shipping online

The 196 mtr long MARABOU arriving in Terneuzen the bulker is built in 1989 at Brodogradiliste '3 Maj' - Rijeka Yard under hull No.: 633 as the VIKOVICE, renamed in 1997 in PENDRECHT followed by VOC PIONEER during 2004 , the Van Ommeren Clipper Bulk operated bulker was renamed MARABOU in 2008 – Photo : Sjaak Klaassen -

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25-02-2013 The BBC JADE departing Durban harbour – Photo : Neville West ©

Cunard Cruise Ship and Tug Boat Bump in New Zealand; No Injuries Reported

A tug boat, reportedly "packed with pleasure seekers," bumped into Cunard Line's Queen Elizabeth while the luxury cruise ship was docked at Wellington port February 23. No injuries were reported on either vessel.

According to The Dominion Post, the incident occurred midafternoon while the tug, carrying 50 people, was maneuvering alongside Queen Elizabeth. The tug's funnel hit the ship's docking platform. But while debris fell onto tug passengers, nothing more serious than a small cut was reported.

Cunard Line confirmed the accident with Cruise Critic. "While Queen Elizabeth was alongside in Wellington, New Zealand on Saturday 23 February a tug made contact with the ship," Jackie Chase, Cunard's manager of public




relations said. "Queen Elizabeth left Wellington as scheduled." Maritime NZ and the Wellington port are investigating. Source : Cruise critics

The COSTA MAGICA visited Gibraltar – Photo : Francis Ferro ©

The PRINS JOHAN WILLEM FRISO outbound from Rotterdam – Photo : Kees Torn ©

Sea Smooth sailors lose counsel in Lamma ferry inquiry

Charles Sussex withdraws from representing crew, citing potential conflict of interest if he continues to represent HK & Kowloon Ferry

By Simpson Cheung

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The legal team for the owner and crew of the ferry Sea Smooth at the inquiry into the Lamma sea tragedy has withdrawn from representing the coxswain, engineer and two sailors, citing a potential conflict of interest.

The withdrawal of the team led by Charles Sussex SC, came part-way through the testimony of key witness Lai Sai-ming, coxswain of the ferry involved in the collision with the Hongkong Electric launch Lamma IV at the cost of 39 lives.

Sussex told the commission of inquiry at the start of Monday's hearing he had received information that could lead to a conflict of interest if he continued to represent both Hong Kong & Kowloon Ferry and the crew members, and applied to talk to Lai to clarify it.

"I have to clarify some instructions which I have obtained from other clients, and potentially I am put in a position of considerable professional embarrassment and it might lead to my having to cease to act," he said. He refused to disclose the information, citing professional privilege. "It has the potential result that I am seeking to advance a version of events which is irreconcilable as between different clients," he said. I have to clarify some instructions which I have obtained from other clients, and potentially I am put in a position of considerable professional embarrassment Commission chairman Mr Justice Michael Lunn ruled that Sussex could not discuss the matter with Lai as the coxswain had begun giving his evidence.

Sussex and his team decided to withdraw from representing the crew members, but will continue to represent the ferry operator. After a short adjournment, three crew members decided they could continue to testify without legal representation, but Lai, who began giving his evidence on Friday, said he needed time to consider. Lunn ordered Lai to return to the commission today to give his decision and proceeded to hear from Sea Smooth crew member Wong Tai-yau. The ferry operator refused to comment on the reason for the withdrawal.

Wong, a sailor since 1980, said he was a relief crew member on October 1 last year - the day of the collision - replacing another who was on leave. He had been helping the coxswain with lookout duties in the wheelhouse shortly after the catamaran set sail from Central at 8pm. As the vessel left Victoria Harbour, he saw numerous small boats and yachts coming the other way, and he assumed they were going to watch the National Day fireworks display.

As the vessel neared Lamma Island, 30 to 40 seconds before the collision, he and two other crew members left the wheelhouse to prepare to berth at the Yung Shue Wan pier.

He said he did not see any vessel approaching before leaving the wheelhouse. But he said he had previously experienced the fog light at the Lamma power station impeding his vision. Approaching vessels were not detected until they were 200 to 300 metres away.

Cross-examined by Clive Grossman SC, for the owner and crew of Lamma IV, Wong said the skipper would not cook during the voyage, although there was a rice cooker in the wheelhouse. He said did not hold a radar or first aid certificate.

Grossman pointed out that different duties were designated for two sailors on a vessel in case of collision, but Wong said there was no such differentiation in daily work. Eight children and 31 adults, who had been on board the Lamma IV, died. The hearing continues – Source : South China Morning Post

The YOSSA BHUM passing the Malacca Straits – Photo : Capt Neil Johnston – Master Salviceroy ©



AFTREDEN ALGEMEEN DIRECTEUR SCHEEPSBOUW NEDERLAND

Per 1 augustus 2013 treedt Mieke Bakker-Mantjes terug als algemeen directeur van Scheepsbouw Nederland. De afgelopen weken heeft intensief overleg plaatsgevonden tussen Bakker-Mantjes en de voorzitters van VNSI, Vereniging Holland Marine Equipment en Scheepsbouw Nederland. Na anderhalf jaar kon geen overeenstemming bereikt worden over de verdere invulling van de directeursfunctie.

Met name op het gebied van de verdere samensmelting van de verenigingen en de praktische uitwerking daarvan kwamen de partijen niet op één lijn. Voor de algemeen directeur van Scheepsbouw Nederland een cruciaal punt om als verandermanager goed te kunnen functioneren. Dit heeft haar doen besluiten de functie neer te leggen per 1 augustus 2013, als haar contract na twee jaar afloopt. Het in dit stadium bekend maken van het besluit geeft de ruimte aan het bestuur om te zoeken naar een opvolger en zodoende de continuïteit te waarborgen voor Scheepsbouw Nederland.

In de afgelopen anderhalf jaar hebben veel veranderingen plaatsgevonden, zoals de verhuizing van Scheepsbouw Nederland, CMTI en HME BV naar de Willemswerf in Rotterdam, een verdere integratie van de organisaties, het opstellen van het strategierapport ‘Nu doorpakken!’, de doorstart van Nederland Maritiem Land en inspanningen in het Europese veld. Mieke Bakker-Mantjes: “Ik zal mijn taken als directeur naar eer en geweten voortzetten tot een vervanger is gevonden. Ik ga mij intussen ook oriënteren op nieuwe uitdagingen.”

Sjef van Dooremalen, voorzitter Scheepsbouw Nederland: “We zijn haar erkentelijk voor het vele werk dat zij voor Scheepsbouw Nederland heeft verricht. Met name de wijze waarop zij de samenvoeging van de kantoren uit Zoetermeer en Rotterdam met de verhuizing naar de Willemswerf heeft gerealiseerd.”

The SVITZER MUSSELWICK moored in Swansea, UK. – Photo : John Attersley ©

Asian Ship Loans Seen Prolonging Worst Industry Slump in Decades



Asian banks are prolonging the shipping industry’s worst slump in decades by lending more money to fund building of vessels ordered from local yards, according to HSH Nordbank AG, the world’s biggest marine lender. Record deliveries of new ships built in the past four years are curbing earnings and vessel owners’ cash flows, Christian Nieswandt, Hamburg-based HSH Nordbank’s global head of shipping for Germany, said in interviews in the city and London on Feb. 21-22. “Significant” numbers can’t repay loans, he said. The Baltic Dry Index of rates to ship minerals and grains by sea fell in four of the last five years as the fleet’s growth outpaced demand for commodities. A delayed recovery will hurt European banks estimated by Petrofin Research to hold about 75 percent of $500 billion in global shipping loans. Banks are deferring repayments and restructuring terms to avoid foreclosures and writing off defaulting loans as vessel prices plunge to levels below outstanding debt. “Asian banks are in a difficult situation,” Nieswandt said. “They want to support their domestic shipyard business, and you see this tremendous amount of money they have committed to new projects in 2012. This will again lift the more promising equation between supply and demand farther out into the future, and therefore we tend to become more skeptical about the recovery in 2014.” Worst Since 1980s Shipping is in the middle of the worst downturn since the 1980s, said Martin Stopford, president of the research division of Clarkson Plc, the world’s biggest shipbroker. Ten German banks have 98 billion euros ($129 billion) in shipping loans between them, according to Moody’s Investors Service. German banks’ exposure to Greece, Ireland, Italy, Portugal and Spain totals about $360 billion, including bonds and lending to governments, banks and the private sector, figures compiled by Bloomberg Industries show. HSH Nordbank has outstanding loans of 29 billion euros on about 2,800 vessels, said Nieswandt. The closely held company said on a December conference call shipping accounted for “the lion’s share” of 458 million euros in net loan-loss provisions, or money set aside for nonperforming loans, in the third quarter. Most new orders for vessels are financed by export credit agencies to support shipbuilding in Japan, South Korea and China, filling a gap as European banks curb lending to the industry, according to Nieswandt. Shipbuilder Support Chinese government policy since 2009 has been to encourage banks to fund orders by foreign owners in the Asian country’s yards to support shipbuilding, Zefeng Gao, the Beijing-based deputy director shipping at Export-Import Bank of China, the nation’s biggest lender to the industry, said at a conference in London last month. Chinese banks have been providing funding since last March to owners ordering “high-end, high-tech” vessels, in line with a government policy encouraging shipbuilders to diversify from basic designs to more sophisticated models including gas carriers, Gao said. Commerzbank AG, the third-biggest marine lender, has said 26 percent of its shipping loans spanning 2,000 vessels were higher-risk, with loan-loss provisions for the industry accounting for 299 million euros of the fourth quarter’s 614 million-euro total. The Frankfurt-based company closed its ship- finance unit and stopped maritime lending last year. Vale, Maersk New orders at Chinese shipyards fell 44 percent in 2012 and only 69 of the country’s 1,500 builders secured contracts, according to an Export-Import Bank of China presentation in January. The agency loaned $7.5 billion since 2009 to 80 owners building new ships in China including Vale SA (VALE3), the largest iron- ore producer, and A.P. Moeller-Maersk A/S, operator of the biggest container line, the presentation showed. Banks lent $34.3 billion to shipping in 2012’s first nine months, totaling 45 percent of capital, compared with $129.2 billion and 75 percent in 2007, Marine Money International figures showed. More money was raised through bond sales than bank loans last year as financing shrank from $74.5 billion for 2011, according to the Stamford, Connecticut-based publisher. Freight rates plunged after Lehman Brothers Holdings Inc. collapsed in September 2008, causing used ships to tumble as much as 66 percent in value and prices of new vessels to slide 55 percent, according to figures from London-based shipbroker Simpson Spence & Young Ltd. HSH Nordbank has $42 billion in shipping loans, followed by $33 billion for DNB ASA, the biggest Norwegian lender, and Commerzbank’s $28 billion, according to a November 2011 presentation by Petrofin. The Athens-based maritime consultant estimated European exposure at 75 percent of the $500 billion in outstanding loans. Source: Bloomberg



Iran said to deploy ageing foreign tankers, avoiding sanctions

Iran is using old tankers, saved from the scrapyard by foreign middlemen, to ship out oil to China in ways that avoid Western sanctions, say officials involved with sanctions who showed Reuters corroborating documents. The officials, from states involved in imposing sanctions to pressure Iran to curb its nuclear programme, said the tankers - worth little more than scrap value - were a new way for Iran to keep its oil exports flowing by exploiting the legal limitations on Western powers' ability to make sanctions stick worldwide. Officials showed Reuters shipping documents to support their allegation that eight ships, each of which can carry close to a day's worth of Iran's pre-sanctions exports, have loaded Iranian oil at sea. Publicly available tracking and other data are consistent with those documents and allegations. "The tankers have been used for Iranian crude," one official said. "They are part of Iran's sanctions-busting strategy." Dimitris Cambis, the Greek businessman who last year bought the ships - eight very large crude carriers, or VLCCs - to carry Middle East crude to Asia, flatly denied doing any business with Tehran or running clandestine shipments of its oil to China. Cambis said he had not been involved in shipping before but had bought the tankers as part of a new venture he runs from the United Arab Emirates. He denied trading with Iran - though he has contacts there from his previous work in the oil industry. He denied his vessels have loaded oil from Iran while at anchor in the Gulf. Known as ship-to-ship transfers, or STS, such movements are hard to track as crews can switch off tracking beacons or not update their recorded positions for periods to conceal that one vessel has come alongside another. Cambis also explained a stop in Iran by one of his tankers - recorded in publicly available tracking data - as having been only for an emergency repair, not to load an oil cargo. "There is no Iranian vessel that has done any STS with us," Cambis told Reuters in Athens in response to the officials' allegations of taking oil from Iranian tankers owned by Tehran shipping group NITC. "We have nothing to do with NITC." The officials involved with sanctions dispute his account and showed documents detailing several ship-to-ship loadings. They said all eight of the tankers were involved in Iran trade. In one instance in early December, according to the shipping documents shown to Reuters by the officials, an NITC tanker named Marigold loaded Iranian crude onto the Leycothea, one of Cambis's eight ships, while both were at anchor off the UAE emirate of Sharjah. Public tracking showed Cambis's tanker made a call about a month later to Zhanjiang oil terminal in China. Loading at sea lets vessels pick up a cargo without visiting the country of origin of the

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crude. Officials allege the tankers are also used as offshore storage for Iranian oil which can then be transferred onward to other ships, concealing its origins. Officials in Iran, which rejects Western allegations it is seeking nuclear weapons, did not respond to requests for comment. MUDDYING WATERS Experts on sanctions law said that by operating outside the European Union, shipowners had no clear obligation to observe rules barring EU companies from buying Iranian oil, though banks and insurers with EU or U.S. business ties are giving a wide berth to firms they suspect of dealing with Iran, given U.S. and EU efforts to penalise such firms within their own jurisdiction. "Such ships would be used to delete traces of a trade taking place," a London-based ship broker said. While Iran has its own substantial tanker fleet, capable of carrying over 72 million barrels, the 2 million barrels that each of the eight tankers can move would be a useful addition to its capacity, analysts said - particularly as their foreign ownership and management could help conceal the Iranian origin of the oil, making it easier to obtain insurance, finance and other ship services that are affected by EU and U.S. sanctions. Cambis said that between August and November he bought the eight ships: Leycothea, Glaros, Nereyda, Ocean Nymph, Seagull, Zap, Ocean Performer and Ulysses I. The first five are now managed by his firm, Sambouk Shipping, in Sharjah and he is in the process of transferring management of the remaining three. In other movements indicated by the shipping documents, the Nereyda was also involved in a separate ship-to-ship transfer with NITC's Rainbow in the Gulf in November, while the Glaros took an offshore transfer from the Marigold there in December. The Nereyda was later recorded arriving at a terminal in China in December. The Glaros appears to have remained in the Gulf since that December transfer, according to tracking data. Asked about publicly available ship tracking data showing that the Glaros stopped at Iran's Larak Island oil terminal on October 20 last year, Cambis provided what he said was an affidavit by the ship's master describing an emergency repair carried out by Iranian divers when the tanker was headed to Saudi Arabia. The master, named as I. Bonoutas, could not be reached for comment. Cambis denied loading any oil in Iran. After its stop at Larak, Glaros's next recorded visits, according to ship tracking data, were at Chinese ports between November 24 to December 1. The eight tankers, built up to 20 years ago, can carry about 16 million barrels of oil among them, shipping databases show. Iranian crude exports declined to an average of 1.5 million barrels per day (bpd) in 2012, down about 1 million bpd from 2011 levels, data from the International Energy Agency showed. NITC BLACKLISTED The eight tankers were bought last year for a total of about $204 million, ship trading sources said - reflecting prices only 3-4 percent above their worth as raw metal. The purchases have been the object of considerable discussion among ship brokers - not least because they would more typically have been broken up. A ship dealer based in London said, however: "They can carry on trading for as long as people are willing to employ them. "There's really not much that any authorities can do." NITC has been blacklisted by the West and the EU has imposed an outright ban on providing ship insurance that would benefit Iran. The exit from Iran of top providers of ship certification, vital for port access, and the removal of Iranian vessels from international registries have added to operational challenges. While NITC has expanded its fleet in recent months, experts say access to additional foreign tankers would give Tehran more flexibility in maintaining exports. "The key word for the Iranians is resistance as in the Supreme Leader's declaration of a resistance economy," said Scott Lucas, a specialist on Iran at Birmingham University. "This is not an economy which is going to produce growth but it is one which is going to try and avoid a domestic collapse." Source: Reuters

CASUALTY REPORTING Ship collision at Sanyou Shipyard

A 8,000dwt cargo vessel slid into the navigation channel of the Yangtze River and hit a 3,000dwt coal carrier last Monday, when the workers of Jiangsu Sanyou Shipyard were trying to drag the cargo vessel to the shipyard for repair, and the pulling cable suddenly snapped



The coal carrier was hit in the middle and sank completely. Two of the crew members have been rescued and one remains missing. Source : Sino Ship News

NAVY NEWS

Littoral Combat Ship ready for first overseas deployment

The Navy’s USS Freedom will set sail for Singapore on March 1, the inaugural overseas trip for the beleaguered Littoral Combat Ship program.

During its eight-month deployment, the Freedom will conduct maritime security operations as well as participate in international exhibitions and exercises, according to a Navy announcement last week.

“USS Freedom is ready for her deployment,” said Naval Surface Force spokesman Lt. Rick Chernitzer said in January. “This deployment will not only put USS Freedom through her paces in an operational environment, but will also allow the Navy to see which areas are strong and which areas require improvement.

“We expect to find challenges during this deployment, but we are confident that those challenges can be met and valuable lessons learned,” Chernitzer said. “These lessons learned will improve future LCS deployments.”

The Littoral Combat Ship program has been plagued by structural deficiencies and cost overruns since its inception. Setbacks to the first two ships built — the Freedom and USS Independence — included hull cracks, corrosion and system failures.

In a 2011 report, the Pentagon said the ships would be unable to fend off attacks if the problems weren’t fixed.

The combat ships have a shallow draft so they can operate where bigger ships cannot. They are fast, can be constructed quickly, and can be fitted with different mission modules such as surface warfare, mine sweeping and anti-submarine warfare, depending on the mission.

The Freedom will be fitted with a surface-warfare mission package and

maritime-security module, Chernitzer said. The deployment will demonstrate the ship’s capabilities and allow the LCS Council — a working group established in August by chief of naval operations Adm. Jonathan Greenert — to evaluate crew rotation and maintenance plans. “LCS is an affordable, vital and complementary component of the surface fleet,”

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Chernitzer said. “LCS’ inherent capabilities and suitability to conduct lower-end missions will free up our more expensive, multi-mission cruisers and destroyers to conduct higher-end missions. LCS is designed to defeat threats in coastal waters where increasingly capable submarines, mines and swarming small craft operate.”

By the end of 2021, the Navy expects to have 24 littoral ships under contract, with 16 of those assigned to the Pacific Fleet, Chernitzer said. Source : Littoral Combat Ship ready for first overseas deployment Source : Stars and Stripes

Chinese transport 'workhorses' extending military's reach

China is expanding its long-neglected fleet of supply ships and heavy-lift aircraft, bolstering its military prowess in support of missions to enforce claims over disputed territory and to defend Chinese interests abroad. These transport workhorses are unlikely to arouse the same regional unease as the steady rollout of high performance fighters, long-range missiles or potent warships, but they are a crucial element of the People's Liberation Army's (PLA) three-decade military build-up, defence analysts say.

Over time, the air and sea support will give the world's second-largest navy greater geographical reach and will enhance the PLA's capacity to assist troops on distant battlefields, potentially including Taiwan if Beijing were to launch a military assault to take control of the self-governing island. China's state-owned shipyards last year launched two 23,000-tonne type 903 replenishment ships, according to reports and photographs published on Chinese military affairs websites and blogs, with further orders in the pipeline.

Defence analysts say the state-of-the-art ships are undergoing sea trials and should be commissioned into the Chinese navy later this year.

China also confirmed last month that the PLA had conducted the first test flight of its Y-20 heavy lift aircraft from the Yanliang airbase near Xi'an in Shaanxi Province.

State-run television showed footage of the four-engine Y-20, the biggest aircraft built in China, taking off and landing. The Y-20, built by AVIC Xi'an Aircraft Industry (Group) Co Ltd, would have a 66-tonne payload, according to official media reports.

The impending delivery of these support ships and aircraft is further evidence China intends to become a more ambitious global military power in a decisive break with its traditional security priorities of expanding or defending its extensive land borders.

"They are beginning to develop their capacity for power projection, there is no question about that," says Li Nan, an expert on the Chinese military and a professor at the U.S. Naval War College in Newport, Rhode Island.

Steep increases in military outlays over three decades have allowed China to build an advanced navy that now ranks second to the United States fleet in terms of raw numbers.

The Chinese navy now has about 80 major surface warships including its first aircraft carrier, the Liaoning. It also deploys more than 50 submarines, about 50 landing ships and more than 80 missile attack boats, according to Pentagon estimates of PLA military strength.

However, construction of support and replenishment vessels in Chinese shipyards has lagged far behind the output of combatants.

China has only five major supply ships to support a fleet that is conducting increasingly intense patrolling and exercises around disputed territory in the South China Sea and East China Sea.

These vessels are also called upon to support the Chinese navy on a growing number of deployments far into the Indian and Pacific oceans.

By comparison, the U.S. navy has 34 big replenishment ships to support about 140 major surface warships, according to Pentagon figures.

The Chinese navy's extended missions include regular deployments of naval task forces to the Gulf of Aden and waters off the horn of Africa as part of United Nations authorized anti-piracy operations.

These operations have stretched the logistics capacity of the China's navy with its three most capable supply ships on almost permanent duty, according to details of the deployments announced by the Chinese military.



However, these deployments have provided an opportunity for the ships and crews to practise and refine the ongoing resupply of warships, highly skilled manoeuvres that are essential to keeping warships at sea for long periods, naval experts say.

China's defence ministry said that the frigate Mianyang, destroyer Harbin and the supply ship Weishanhu sailed on Feb. 16 from Qingdao on the 14th of these anti-piracy deployments.

While extra supply ships will extend the range and endurance of Chinese fleets, Beijing's strategic objectives still remain relatively limited outside the nearby seas where it is locked in territorial disputes with some of its neighbours.

"They are focusing on securing sea lanes, counter piracy and evacuating Chinese nationals in times of crisis," says Li.

China's expanding military transport capability is unlikely to have an immediate impact on its tense standoff with Japan over disputed islands in the East China Sea that are close to logistics bases on the Chinese mainland, naval analysts say.

"Support ships will not change the nature of operations in the East China Sea but will have an impact on the ability of the Chinese navy to conduct operations at sea, if the support ships are used to grow its professionalism and seamanship," says Alessio Patalano, a Japanese military expert at King's College in London.

For China's top brass, the first test flight of the Y-20 was an important milestone as the PLA continues its transformation from a predominantly mass, ground army to a leaner, more mobile force.

"These aircraft are vital if you need to move a lot of people and a lot of equipment some place very, very fast," says Reuben Johnson, a Kiev-based military analyst and correspondent for Jane's Information Group, who has studied the Y-20 program. Reports in the official Chinese media said the Y-20 could land and take off from restricted airstrips and had the capacity to carry most PLA combat and support vehicles.

Chinese military planners have drawn lessons from the importance of heavy-lift aircraft in recent U.S. and other Western military operations where the capacity to shift troops and supplies to distant battlefields or trouble spots has delivered an overwhelming advantage, military analysts say.

The U.S. military has a fleet of more than 300 heavy lift Galaxy and Globemaster aircraft in service along with more than 400 smaller-capacity transport aircraft.

Many of these aircraft can operate from short, uneven landing strips in remote and rugged terrain. The PLA's air-lift capacity is much smaller. It currently operates about 20 Russian-built Il-76 transport aircraft. The Il-76 has a 50-tonne payload compared with the Globemaster's 77 tonnes and 118 tonnes for the Galaxy.

Additional Il-76 aircraft are reportedly on order from Russia but production bottlenecks are holding up deliveries, according to Russian military experts.

If China can introduce a sizeable fleet of Y-20 aircraft over the next decade, it will sharply enhance the PLA's capacity to land troops and equipment on distant battlefields. Military experts say this capability would be particularly important in an invasion of Taiwan should Beijing decide to use force to establish control there.

Some analysts predict the Chinese military will order hundreds of Y-20s benefiting the group's listed unit, AVIC Aircraft Co Ltd, in coming decades if the aircraft can deliver acceptable performance.

They expect the PLA will also use the Y-20 as the basic airframe for its proposed fleet of in-flight refueling tankers and airborne early warning aircraft. Source : Reuters

SHIPYARD NEWS

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Troubled Rongsheng talks funds with Citic

Mainland's No 1 private shipbuilder planning issue of shares to one or a group of investors to raise US$200 million to strengthen capital

By : George Chen

Rongsheng Heavy Industries, whose founding and controlling shareholder was caught up in an insider trading scandal last year, has entered closed-door talks with the capital-rich state-owned China Citic Group for new investment in the mainland's No 1 private shipbuilder.

People familiar with the matter told the South China Morning Post that Zhang Zhirong, whose family tightly controls Hong Kong-listed Rongsheng, planned to issue new shares in a private placement to one or a group of new investors to raise US$200 million to strengthen the company's financial position.

Zhang has reached out to Chang Zhenming, the chairman of Beijing-based Citic for negotiations on relevant fundraising matters, said the people who declined to be identified as the talks remained private and confidential.

Zhang could not be reached for comment. Citic was not available for comment. If successful, the deal would be one of the biggest, and apparently the most high-profile, private placement transactions in Hong Kong so far this year.

Besides Rongsheng's talks with Citic, directly led by the State Council, Zhang also held talks with several major global private equity firms including American investment firm KKR, said the people.

Previous talks with KKR did not go further partly because the American investment firm was concerned about the heavy level of debt raised by Rongsheng over the past few years to support its business expansion. However, Citic might be looking at the deal from a different perspective given its state-owned background, said one of the people.

"If Citic Group is in, it indicates that Rongsheng may someday be turned into a company controlled by the government if Zhang Zhirong is willing to exit at some point," said the person.

"Rongsheng is already the mainland's No1 private shipbuilder. It is important for the government to own and keep it rather than to let it be in foreign hands from a strategic national security perspective

Last year proved to be a troublesome one for Zhang, 43, who eventually agreed to pay US$14 million to settle the insider trading case in the United States in October.

After the settlement, Zhang resigned as chairman of Rongsheng but remained as the biggest single shareholder of a company that is still tightly controlled by Zhang and his father. Zhang's insider trading case was related to state-owned CNOOC's US$15 billion acquisition of Canada's Nexen, the biggest-ever overseas acquisition by a mainland Chinese company.

The insider trading scandal was discovered and made public by the US Securities and Exchange Commission at a time when CNOOC was seeking regulatory approvals for the deal, shocking investors and politicians in both China and Canada. The US claimed that Zhang profited from illegal trades before CNOOC's announcement that it would buy Nexen.

Earlier this month, CNOOC, China's largest offshore oil producer, completed the acquisition despite Zhang's insider trading case.

According to Forbes magazine, the personal wealth of Zhang, who was born in Jiangsu province but has lived in Shanghai since childhood, was estimated at US$2.6 billion as of March last year, making him one of the richest men in the country. In addition to Rongsheng, Zhang also controls Hong Kong-listed developer Glorious Property.

Zhang needs new investors, in particular an entity like Citic with a strong government background, to help Rongsheng overcome business challenges and financial difficulties as the global shipbuilding industry suffers a downturn amid a weak economic recovery worldwide, said the sources.

"I think he needs not only money but also someone strong enough to help him boost investors' confidence in his company," said one person. "In China, of course, more people know the name Citic than foreign investment brands like KKR." Source : South China Morning Post



The LEANNE P during bollard pull test in Rotterdam-Caland canal – Photo : Leo Varekamp ©

China Rongsheng Heavy Industries denies share placement

The board of directors of China Rongsheng Heavy Industries Group Holdings Limited noted there have been news articles reporting that company is planning a private placement of new shares in the company to one or a group of new investors to raise US$200 million, the company reports. The company informs shareholders and the public that the company currently has no plans for the private placement of new shares in the company to investors. Shareholders of the company and public investors are advised to exercise caution when dealing in the securities of the company.

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Cochin Shipyard Ltd delivers fourth supply vessel to Shipping Corporation of India

The Cochin Shipyard Ltd (CSL) on Monday delivered a 120-tonnebollard pull anchor handling tug cum supply vessel to the Shipping Corporation of India (SCI).

With a capacity to accommodate 29 persons, the vessel can be used for both handling the anchor operations of huge rigs as well as for providing supplies to the oil platforms. This is the fourth and the last in the series of vessels being built by CSL for SCI. Each vessel is estimated to cost about Rs 148 crore and the contract for their construction was signed in 2009.

The vessel was designed by the Norwegian firm STX OSV, formerly known as Aker Yards, and is certified under dual class by the Indian Register of Shipping and the American Bureau of Shipping, the release said.

The vessel is equipped facilities, which will allow it to work as an emergency rescue and recovery vessel in case of an oil field exigency. It also has advanced fire fighting capabilities, the release said.

The company presently has 25 ships on order including the work of the prestigious indigenous aircraft carrier for the Indian Navy, 20 fast patrol vessels for the Indian Coast Guard and four platform support vessels for export. A diversified product mix in shipbuilding consisting of commercial and defence ships along with a significant presence in ship repair helped the company to post a profit of Rs 172 crore in 2011-12, the release said. "We hope to match that performance this year as well despite the fact that shipyards are passing through tough times across the country,'' K Subramaniam, CMD of CSL, said. He said the aircraft carrier has been docked back for beginning the second phase of work. The contract for the second phase is also expected to be signed soon. The international ship repair facility, which CSL proposes to build at the Cochin port, will start preliminary operation by March-end, Subramaniam said. The CSL intends to invest approximately Rs 487 crore over the next six years in this ship repair facility. Source : Times of India

Commercial shipbuilding losses sink BHIC Boustead Heavy Industries Corporation Bhd (BHIC) posted losses in the fourth quarter ended Dec 31, 2012 which also dragged the full year into the red following further losses in the commercial shipbuilding business.

BHICH said on Thursday it posted net losses of RM72.83mil in Q4, 2012 versus RM3.74mil net profit a year ago though revenue increased 36% to RM214.11mil from RM156.66mil.

Loss per share was 29.32 sen compared with earnings per share of 1.51 sen.

"For the quarter under review, revenue grew by 15% mainly due to income generated by several subsidiaries performing MRO work. Nonetheless, loss before tax increased from RM17.9mil in the third quarter to RM60.7mil as a result of further losses from a commercial shipbuilding project as well as the chemical tankers' impairment cost,” it said.

However, BHIC said the manufacturing segment continued to perform well in the fourth quarter," it said. For FY2012, it posted net losses of RM131.61mil compared with net profit of RM12.78mil in FY11. Revenue rose 18.8% to RM646.52mil from RM544.13mil. Source : The Star

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ROUTE, PORTS & SERVICES

CNOOC completes China’s largest overseas acquisition

China’s biggest offshore oil industry player, China National Offshore Oil Corporation (CNOOC), announced Tuesday that the company has completed the acquisition of Canadian energy company Nexen in a deal worth US$15.1bn, which is the biggest overseas merger achieved by a Chinese company.

According to the statement, Kevin Reinhart will continue to be the chief executive of Nexen, which will operate as CNOOC's wholly owned subsidiary.

Wang Yilin, chairman of the CNOOC, said that the deal gives the company a world-leading platform for development. "CNOOC believes the acquisition is in line with the corporate strategy," Wang said. Source : SinoShip

Baltic Dry Index down to 741 points

On February 26, 2013, the Baltic Dry Index dropped to 741 points, down 2 points (0.27%) against the level of February 25.

BDI is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides "an assessment of the price of moving the major raw materials by sea. Taking in 23 shipping routes measured on a timecharter basis, the index covers Handysize, Supramax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain. Because dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate or finished goods, the index is also seen as an efficient economic indicator of future economic growth and production. On 20 May 2008, the index reached its record high level since its introduction in 1985, reaching 11,793 points. On 3 February 2012, the index had dropped 647 points, the lowest since 1986.

World's Leading Work Boat Suppliers Show Off in Singapore

The ASIAN WORK BOAT Exhibition and Conferences was held in Singapore from February 26 to 28 at the Marina Bay Sands Convention Centre. More than 70 companies from 21 countries showed the best the industry’s suppliers have to offer to the work boat owners and operators of the ASEAN region.

http://www.redwise.com/�



Suppliers of designs,

construction materials, engines, propulsion systems, electronics, safety equipment, lighting, fendering, lifting equipment, ship repair, generators, delivery services, winches, chandlery, and much more will

join a number of the world’s leading work boat builders in presenting their products and services in Singapore. Market leaders such as Rolls Royce Marine, Cummins, Dresser-Rand Guascor, MTU, Onan, BT Marine, Stone Marine, Leslie’s Yacht & Marine, HamiltonJet, Castoldi, Masson Marine, Vulkan, D-I Transmissions and Logan Clutch are among the many engine and propulsion system suppliers that are exhibiting. Similarly, a wide range of builders of tugs, OSVs, ferries, patrol boats, rescue boats, pilot boats, crew boats and more are exhibiting. Among them are Alnmaritec, LeisureCat, Lita Ocean, Aspin Kemps Rotortug, Alucraft, All American Marine, Hongda, Pro-Safe, Vanguard, Hung Seng and Anggrek Hitam.

Asian Work Boat 2013 also presented five high quality conferences that are aimed precisely at work boat owners and operators. They have attracted expert speakers from all over the world. Access is free to all but one of them.



Several Dutch crew suppliers and ship delivery company (Atlas/ ICS/ TOS and Redwise) representatives

exchanging contacts at the exhibition

iPS – Powerful People launches office in Den Helder

Personnel supplier iPS opens an office in Den Helder, specifically focusing on the Dutch shelf of Offshore and Energy operations. Manager Hans Slootweg will lead this new iPS segment in its next step towards enhancing the company’s position in the Energy industries. Hans Slootweg has broad experience in all staffing aspects in the Oil & Gas market and looks forward to this new challenge: “By opening an office in Den Helder we are able to service clients and candidates in this specific field.” iPS has expertise in complex, international personnel solutions in the Dredging, Tunnelling and Energy industries. The company is growing, and in order to keep up with market demands in the dynamic Offshore sector, opening an office in Den Helder is a logical development. Director Erwin Broeders: “Together with our successful Scheveningen office and business presences abroad, we take our activities in the Energy sector to the next level. We now fulfill job positions in all aspects of the Offshore, Oil & Gas and Wind Energy industries: From staff personnel to sailing personnel and offshore production and drilling crews.”

The opening of this office fits in the growth strategy of the company and takes place at a special moment in the history of iPS. Broeders: “This year we celebrate our 25th anniversary. The Den Helder office is a great development that tops off our jubilee.” iPS is confident that it will contribute to a better service focused on this specific market.

If you need more information, or would like to meet Hans or one of our colleague consultants, just give us a call. For our details check out www.ipspowerfulpeople.com

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The BOURBON BUSSARAKHAM anchored off Singapore – Photo : Piet Sinke ©

VT WINS PANAMA MARITIME GREEN SHIPPING AWARD

On the 26th of February 2013, VT was awarded the Panama Maritime Green Shipping Award 2013. His Excellency Koji Sekimizu, Secretary General of the International Maritime Organization IMO presented the winner at the Panama Maritime XI conference in Panama City. Presented by the Panama Maritime Authority, the award recognizes companies that have shown "outstanding performances" towards environmental goals within the maritime sector. Presented by the Panama Maritime Authority, the Panama Maritime Green Shipping Award recognizes companies that are outstanding performers based on several criteria: the development of environmental security and protection plans on an international, regional and/or national level; implementation of technology to reduce maritime and atmospheric contamination; and establishment of emergency strategies. VT performed best of all the companies and vessels in the Panama Flag Registry, comprising of 8144 vessels totaling 217.973.738MT, making it the largest Registry in the world. VT operates vessels for BP in the Panama region and Europe, supported by BP Shipping & BP Vetting & Assurance. The long-term cooperation is based on the philosophy that clean ships, clean seas will lead to commercial success. The last 2 years VT also won the Dutch shipping CO2 reduction competition, taking 1th, 2nd place consecutively. VT was founded in 1916 with the head office in Rotterdam, and at the moment we offer our specialized services in Europe and Central America (Panama). VT is specialized in: Transport of clean and black mine ra l products , biofue ls and chemica ls.

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Sea and port bunke ring and transport of fue ls and lubricants. Charte ring activitie s for clean and b lack mineral products, biofuels and chemicals. Flee t management for third pa rtie s. Maritime consulting. An important trademark of the VT Group is its dedication to quality assurance. The company has been ISO 9002 certified since 1995 and has received many commendations for initiatives in this field. Sustainability plays a significant role in the company and our quality control. In order to underline our commitment, the company also became NEN-EN- ISO 14001 certified since the start of 2007. Through the Port of Rotterdam we also participate in the Rotterdam Climate Initiative, an ambitious project with the goals to cut CO2 emissions in Rotterdam by 50% by 2025 which is part of the Clinton Climate Initiative. The "Cleanest Ship" project is also a good example of how VT looks at sustainability and corporate social responsibility. This project has proven that an operation with minimum impact on the environment is possible and we strive to fully implement this technology in the future. VT takes part in the Green Award certification project. The Green Award Foundation is active all over the world with the certification scheme for dry bulk carriers and oil tankers that go above and beyond the set standards in cleanliness and safety. All efforts are made to benefit the marine environment, including cleaner seas and rivers. All ships are regularly inspected by OCIMF EBIS (European Barge Inspection System) en SIRE/BIRE (Ship Inspection Report Program) and internal audits are carried out on ships and crew. Our employees are expected to follow an intensive professional training program. This training consists of external and internal provided courses, which are both theoretical and practical. Part of sustainability is also the way you take of your human resource. Besides the 5 year cycle training program VT runs for all employees, we introduced the VT Captain’s Academy. Young ambitious employees are coached and tested periodically to reach the desired VT standard. Experienced captains serve as mentors to guide them through the traineeship, adding value throughout the chain. Sustainability is more than clean engines alone, it is a way of thinking.

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Jumbo transports a Bogie Support Structure from Singapore to South-

Korea

On the 20th of February 2013, the Jumbo Fairpartner successfully completed the transport of an 816t Bogie Support Structure. The Structure was loaded in the Gul Basin of Singapore early February and discharged in Ulsan, South-Korea, where it will be integrated in a new building vessel, the company reports.

The diameter of the Bogie Support Structure was close to the width of the vessel. This, in combination with a structure height of 15+ meters and a weight of 816t, made the Fairpartner close to her lifting limits during loading and discharging.

The departure draft of the Fairpartner was restricted due to shallow parts in the Gul Basin. Jumbo arranged a water depth survey of the Gul Basin, in order to minimize the risk of grounding during departure of Fairpartner. On the 9th of February, during high water, the Fairpartner safely departed Singapore for her voyage to Ulsan, South Korea.




The ALICE THERESA outbound from Amsterdam – Photo : Marcel Coster ©

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The 1354 DWT Russian General Cargo/Passenger Ship KUBAN was built in 1963 at VEB Mathias-Thesen-Werft -

Wismar Yard under hull number 116 under the name NADEZHDA KRUPSKAYA, the 122 mtr long vessel was renamed in KUBAN during 1975 – Photo : Anton Krieger ©

…. PHOTO OF THE DAY …..

The 366 mtr long MSC AURORA outbound from the Berendrecht Locks in Antwerp assisted by 3 tugs

Photo : Stefan Lemmens ©

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