Dalian port profit up for 1H15

Shanghai-listed Dalian port recorded profit of CNY286.1 million (USD44.71 million) for the first half of 2015, up 0.6% from its profit of CNY284.4 million a year ago.
The port’s revenue was at CNY4.1 billion for the same period, up 24.25% year on year (y/y), while its total assets amounted to
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Woodside FLNGs Get Government Go-Ahead

By MarEx 2015-08-19 20:33:11

The Australian Department of Environment has approved Woodside Energy’s $40 billion plans to progress with the Browse FLNG project.

The approval is valid until 31 December 2070, and allows for Woodside to install, operate and decommission the infrastructure for the development of the Torosa, Brecknock and Calliance gas fields, located approximately 425 km north of Broome, Western Australia, in the Browse Basin, using FLNG technology.

The Browse Joint Venture participants agreed to enter the front-end engineering and design (FEED) phase for the proposed floating LNG development earlier this year, a key milestone in preparing for a final investment decision, targeted for 2H 2016.

The Browse FLNG Development concept is based on three FLNG facilities using Shell’s FLNG technology.

Initial development plans involved an onshore plant at James Price Point on the remote Kimberley coast, but the idea was scrapped just weeks before a final investment decision was due, after finding it would cost at least $80 billion.

Participants in the Browse joint venture include Woodside as operator, Shell Development Australia, BP Developments Australia, Japan Australia LNG (MIMI Browse) and BHP Billiton Petroleum (North West Shelf).

The approval notice is available here.

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Hapag-Lloyd Buys 6,000 Reefers

By MarEx 2015-08-19 19:57:06

Hapag-Lloyd is investing a double-digit million amount in 6,000 of the latest generation of reefer containers. The order is the largest in the company’s history.

Hapag-Lloyd is already one of the largest reefer carriers in the world today and expects benefit from increasing transport volumes not just on East-West trades, but also on North-South and Latin American trades.

“We operate a state-of-the-art reefer fleet that is the fourth-largest in the world. With the new reefers, we are expanding our leading position even further in this specialized business with its specific demands and will thus benefit from the growing reefer market,” says Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd.

“With our enhanced reefer fleet, we are ideally positioned for the Latin American trade, which is an important part of the reefer business – right on time for the opening of the expanded Panama Canal next year.”

In April this year, Hapag-Lloyd ordered five new 10,500 TEU ships with a high number of slots for reefers. Each of these ships can accommodate up to 2,100 reefers. The newbuildings are to be used primarily on trades to and from South America, as this region is one of the strongest reefer markets in the world.

The new reefers are to be gradually integrated into the container fleet, starting in the coming weeks.

Hapag-Lloyd uses reefers to transport temperature-sensitive cargo such as fruits, vegetables and pharmaceutical products as well as meat and fish. Around 1,000 of the newly ordered containers will be fitted with controlled-atmosphere technology, which prolongs the life of certain fruits and vegetables, while maintaining the same quality. The state-of-the-art containers will also have cooling units with the highest level of efficiency. Thanks to optimized power control, they will consume significantly less energy, without any change to performance and temperature precision.

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Divers First In On Sewol Recovery

By Wendy Laursen 2015-08-19 19:38:14

Salvage work on the Sewol ferry began in South Korea on Wednesday when divers started surveying the condition of the vessel in order to finalize plans for raising it.

The survey is expected to take several weeks, as the country is trying to recover the ship without any serious damage to the vessel or any remains of people still missing.

Sewol ship sank April 16, 2014 en route to the southern resort island of Jeju. The disaster saw 304 people killed, most of them students on a school excursion. There are nine people still unaccounted for.

The $72 million project to recover the ferry was awarded to a Chinese consortium led by China’s state-run Shanghai Salvage. The consortium has brought 96 divers in to study the condition of the ferry and the notoriously strong currents at the location.

The vessel is expected to be hoisted from the seabed early next year and have the project completed before the end of June.

The vessel lies in 40 meters of water and will be lifted using metal beams. If successful, it will be a salvage industry first, as a ferry as heavy as 6,700-tons has never been lifted before without cutting it into separate parts. With water inside, the Sewol is estimated to weigh about 8,500 tons.

Airbags will initially be used to raise the vessel from the seabed so that the beams can be inserted underneath the ferry. Cranes will then lift it on to a submerged platform to bring it to the surface.

The salvors will net the ship to prevent any contents being lost.

Some South Koreans have questioned whether the expense of the salvage is merited, given the slim chance of finding any more bodies or uncovering any fresh evidence regarding the cause of the tragedy.

There is also a risk for the divers involved. South Korean divers, working in dangerous conditions with strong currents and low visibility, recovered 295 bodies from Sewol before abandoning the search in November last year. One lost his life during the efforts.

Families of the victims have gathered on the island with placards wishing for the safe recovery of the nine bodies.

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Egypt’s New Electronic System Will Speed Transits

By MarEx 2015-08-19 16:35:43

Egypt’s Ministers of Transportation, Finance and Trade announced the application of an electronic system to link data at its ports. The system will connect all of Egypt’s ports to one database, which will be used in custom clearance and inspection procedures. The linkage system is expected to expedite queues for ships that can wait up to six days to be inspected into just four hours.

Egypt is also implementing a “one-stop-shop” system, which will allow investors to receive approvals through a single process. Per a newly-approved law, Egypt’s General Authority for Investment and Free Zones (GAFI), will obtain permits and licenses on behalf of investors from government bodies.

With the Suez Canal expansion completed, the Egyptian government is now encouraging investment and, in February, it announced corporate tax cuts in the zone to one-third of the national rate in order to boost investments. Egypt expects that cutting clearance time from days to a few hours there will be more investment.

More than 17,000 ships transited the Suez Canal in 2014, which is about 50 ships per day. The expanded canal will increase traffic about 100 ships per day.

The government expects the system to be functioning throughout all ports in about three months.

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