DAILY COLLECTION OF MARITIME PRESS CLIPPINGS 2014 – 174

Number 174 *** COLLECTION OF MARITIME PRESS CLIPPINGS *** Monday 23-06-2014 News reports received from readers and Internet News articles copied from various news sites.

In IJMUIDEN the DEEP HELDER was named last Friday – Photo : Jan Plug (c)

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EVENTS, INCIDENTS & OPERATIONS

DEEP HELDER NAMED IN IJMUIDEN

On Friday 20th. of June, the new Offshore Support vessel DEEP HELDER of Seamar in Den Helder was christened at the Cruise

quay in IJmuiden. Many guests gathered at the Terminal where they were entertained by some dancers. Around 16:00, Esther Groet of Deep Ocean called everyone to the quay, followed by speeches Seamar Financial advisor Gerard Fit and DeepOceans’s General

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Manager of DeepOcean B.V. Rick Green. Then Seamar CEO Leo Balkema welcomed all guests to the ceremony and spoke about his dream which came through today. He is very proud of this achievement and thanked all the people, from both Seamar and Shipyard De Hoop, to make all this to happen. Finally Patrick Janssens, CEO of De Hoop Shipyard, spoke about the good relationship between Seamar and the yard, and hoped that this vessel will result in further ‘Offshore’ orders for his Shipyard. After a short break with performance of the dancers, it was time for the Christening ceremony. Witnessed by many guests, godmother Marion Balkema- Penders , wife of CEO Leo Balkema, released the bottle which broke in once against the bow of the new vessel. The name DEEP HELDER was uncovered and Iskes’ tug ARGUS gave a water salute with her powerful fire monitors. The DEEP HELDER will work in charter of DeepOcean B.V., a subsidiary of DeepOcean Group

Holding, who will operate the vessel on survey, IMR and trenching projects for their customers in the Oil & Gas renewable markets, for which the vessel is equipped with an offshore crane, Survey and ROV systems. The 65 m long DP2 class vessel is designed for low fuel consumption, clean ship/green passport/SPS2008 and high comfort class notation (Comf1). A total of 52 personnel can be accommodated on the vessel. With Seamar’s long term experience in agency, logistics & management services and as ship owners, the SeaMar Group of companies offers an allround service package for the offshore and shipping industry. SeaMar Services b.v. provides a wide range of logistics and management services, such as vessel management, project management, crew management, vessel brokerage, logistics support and purchasing, vessel agency services for vessels visiting Den Helder, IJmuiden or any other port in the Netherlands, customs formalities, stevedoring, warehousing and forwarding. Photo Right : Geert Woord – Seamar-Shippings (c) SeaMar Shipping b.v. is a ship owning company, launched in 2001 to widen our service package. Our multipurpose offshore support vessel SeaMar Splendid can be utilised for air diving support, survey and seismic support work. SeaMar is your key to a successful operation. Text / photo’s : Jan Plug (c)unless mentioned other

Terntank orders two more LNG fueled tankers

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Skagen, Denmark, headquartered Terntank Rederi A/S has exercised its options to add two new LNG-fueled 15,000 dwt tankers to the two it ordered at China's AVIC Dingheng Shipbuilding Co., Ltd. in autumn last year. The four ships will be delivered from the shipyard at three-month intervals, with the first set for delivery in the spring of 2016 and the fourth in the beginning of 2017. Two of the new ships will be long-term chartered by NEOT, North European Oil Trade Oy, of Finland. Terntank says it elected to declare its two options because there is considered to be a demand for energy efficient and environmentally adapted tanker tonnage. Source : MarineLog Singapore’s MPA adds bunker supplier to list of accredited license holders The Maritime and Port Authority of Singapore has added A DOT Marine Pte Ltd to its list of accredited bunker suppliers in the port, according to latest information available on its website Friday. The supplier is listed to supply only marine gasoil, and no other grades of bunker fuel. The addition comes after MPA canceled Coteam Petroleum Trading’s licence in April for flouting terms and conditions of the bunker supplier license. The last time MPA issued a new license was in February 2013 when Pacific Bunkering Services was issued one. At present, the total number of accredited bunker suppliers is 64, a far cry from its peak of 80 a few years back. Source: Platts VLCC freight rates to continue facing pressure because of decreasing US oil imports Tonnage oversupply is forcing ship owners to scrap their tankers and more particularly their VLCCs much sooner than before. In a recent note, Mcquilling Services said that “since the beginning of the global economic crisis in 2009, the average age of VLCC tankers sent to the breakers has been reduced to approximately 22 years of age. Despite the ongoing economic recovery, earnings for VLCCs have remained pressured, disconnecting from a historical correlation to scrap prices. Scrap prices closely follow the pace of economic activity measured by world steel production”. According to Mcquilling, “historically, we have witnessed a strong correlation in the behavior of scrap prices and VLCC TCE earnings. One explanation could be that demand for recycled steel (used in construction, motor vehicles, household appliances, etc.) correlates with economic expansion and so does tanker demand as energy consumption also grows. However, this historical coupling has been pressured over the last several years with scrap prices moving higher and TCEs moving lower. We believe that one explanation for this divergence may be found on the demand side of the equation. A key development during this latter period was the rise of US oil production to over 2.72 billion annual barrels in 2013, a 36% increase over 2010 production according to the EIA. This US production revival led by shale has contributed to the decrease of US oil imports by over 16% since 2010 and reducing total crude ton-mile demand by approximately 10% according to our proprietary data”. It added that “using a regression analysis, we looked to quantify the relationship between the level of US crude oil imports and VLCC earnings. A correlation statistic measured by R squared was a significant +.71 helping explain some of the divergence. A correlation statistic of +.70 or greater indicates a very strong positive relationship between the level of US crude imports and VLCC TCE earnings. While we are not keen on concluding that this is the only determinant behind the decoupling, we may lend some support to the notion that indeed, a rise in US Shale production and the associated decrease in US imports have pressured VLCC earnings”. Mcquilling stated that “turning to scrap prices, we note that their strength since 2009/10 is due to a robust global demand for steel production, which picked up since the economic crisis began. According to the World Steel Association, world steel production in 2013 reached 1,578 million tonnes, a 28% increase since 2009. The relationship between scrap prices and world steel production has been a reliable indicator of scrap prices thus far (Figure 4), represented by a +.81 R squared. Therefore, the divergence of VLCC TCE earnings and scrap prices beginning in 2010 may partially be explained by the 16% decrease in US crude imports and the 28% increase in world steel production during this period”. Demolition-wise, Mcquilling said that “in our original forecast in January 2014, we anticipated 15 VLCCs would be demolished. This aggressive forecast has so far been proven to be on target, with actual deletions at the end of May totaling seven, slightly higher than the six we would have expected up until this period. In addition to VLCCs, the pace of exits from the overall tanker industry has been trending higher than expected. As a whole, there have been 42 tanker exits to date, 70% more than the 25 we would have expected through May. Particular strength has been witnessed in the Aframax sector as it has exceeded our full year expectations by 50% already. In conclusion, we note that VLCC earnings may continue to face pressure from decreasing US oil imports, which have impacted the ton-mile demand for crude. This lost demand may eventually be absorbed by a growth in barrels to export markets in the East and a potential for US exports in the future; however, these factors will likely take some time to develop. As it stands today, the VLCC market

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is oversupplied relative to current demand, although the recent demolition activity is positive in achieving a healthier balance. As both advanced and emerging economies continue to grow, higher world steel production should help support elevated scrap values for owners. We believe this may be a prime opportunity for VLCC owners to maximize their residual values for older tonnage and more importantly help support the future earnings of their newer tonnage”, Mcquilling concluded. Source : Nikos Roussanoglou, Hellenic Shipping News Worldwide

The BBC FUJI navigating the Westerschelde enroute Antwerp – Photo : Walter de Groot ©

21-06-2014 : WILD ROSE IMO 9243564, 2001/27989gt, in to Melbourne anchorage, ex Zella Oldendorff until May 2014, ex Violet until Aug 2012. Off Portsea Photo : Andrew Mackinnon – www.aquamanships.com © Another Chinese oil rig dispatched Deployment follows a week of talks between Beijing and Hanoi.

The Chinese government said an oil rig was on its way to the South China Sea near Vietnam, the second such deployment since early May. Chinese maritime officials said China National Offshore Oil Corp.'s rig should be near the Gulf of Tonkin. It left port earlier this week as Chinese and Vietnamese officials tried to find a resolution to disputes that began when a rig was deployed in contested waters in May. Yun Sun, a Chinese security analyst at Washington think tank Stimson Center, told Vietnam's Thanh Nien News the timing of the second rig's deployment was deliberate.

"The decision certainly suggests China's unwillingness to abandon its coercive approach," he said in an interview published Friday. It was unclear if the second rig would be deployed in disputed waters. Both sides say the rig sent in early May is positioned in territories they control. Australian Foreign Minister Julie Bishop told Voice of America her government was calling on all sides to find a way to reduce the tensions. "Australia does not take sides in specific

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disputes, but we call on parties to negotiate and to resolve the issues in accordance with international law," she said. Source : UPI Van Oord's Aeolus is Operational Van Oord held a two-day event along the Rotterdam Wilhelminakade quay to mark the entry into service of AEOLUS, its first transport and installation vessel for the construction of offshore wind farms., business relations had the opportunity to inspect the vessel. On Saturday 21 June, Mrs K. Aboutaleb- Erahoutan, wife of the Mayor of Rotterdam, named the vessel in the presence of guests and Van Oord staff. The vessel was built at Sietas, a German shipbuilding yard in Hamburg. The innovative and advanced transport and installation vessel has a length of 139 m, 38 m in the beam, a design draught of 5.7 m and a cruising speed of 12 knots. The vessel is equipped with a crane that can lift more than 900 tonnes and has accommodation facilities for 75 crew. The installation vessel can be jacked up and can work in a water depth of up to 55 m. Photo left : Dirk van Uitert ©

Photo top : Arie Boer © Photo below : Teun Put ©

The vessel’s first project will be the construction of the Luchterduinen offshore wind project, which is an Eneco energy company and Mitsubishi Corporation assignment. This project will be built 23 km off the Dutch coast near Noordwijk and Zandvoort. The wind farm will consist of 43 Vestas V112 wind turbines. In 2015, the wind farm will provide 129 Mw in green energy to almost 150,000 households. Luchterduinen will be operational after the summer of 2015. Photo right : Frans de Lijster © Photo left : Skyphotomaassluis ©

As EPC contractor, Van Oord is responsible for the engineering, procurement and construction of the foundations, the complete electrical infrastructure, including the offshore transformer station and the installation of the wind turbines. The vessel is already completely occupied for 2014, 2015 and 2016. After Luchterduinen, the vessel will be deployed on the Gemini project, where 150 wind turbines are being installed 55 km off the coast of

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Schiermonnikoog in depths of 35 m. The commissioning of AEOLUS is part of the vision and strategy of Van Oord to expand the Offshore Wind Projects business unit. The growing world population needs more space and the demand for energy is rising constantly. The Dutch Energy Agreement, which states that in the next ten years the generation of sustainable (renewable) energy must grow from 4% to 16%, makes clear that the AEOLUS offshore installation vessel can contribute to these objectives.

‘The naming and commissioning of a new vessel is always an exceptional event’ says CEO Pieter van Oord. ‘And that’s certainly the case now we have added a new type of vessel to our extensive fleet. Furthermore, this vessel gives us the opportunity to extend our leading role in the construction of offshore wind farms. In the next few years, the construction of the Luchterduinen and Gemini wind farms means that the Netherlands can demonstrate that it is focusing seriously on the generation of sustainable energy and the implementation of the Energy Agreement.’ Source :MAREX

The brandnew Dutch flagged NILEDUTCH BREDA left the builders in Shnghai for her maiden voyage Photo : Johan de Graaf (c) Sunken ferry owner’s wife placed on wanted list Investigators have alleged that the wife of fugitive Yoo Byung-eun, the owner of the sunken ferry Sewol, is hiding out with her oldest son in the southern part of the nation, according to prosecutors on Thursday. The Incheon District Prosecutors’ Office said it has recently put Kwon Yoon-ja on the nation’s most wanted list, which already contains Yoo and their son, Dae-kyun. Kwon is a daughter of the late pastor Kwon Shin-chan, who reportedly created the Salvation

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Sect with Yoo Byung-eun, his son-in-law. While the sect leaders claimed that it was an evangelical Baptist church, it had been labeled as heretical by the denomination. Kwon has been under suspicion of pocketing company funds of a sister firm of Chonghaejin Marine Co., the operator of the ill-fated Sewol, and funds raised by devotees of the Salvation Sect. Investigators said she was estimated to have embezzled as much as 1 billion won ($952,000).

She has been the CEO of a door-to-door sales company in Daegu, and police have raised the possibility that Kwon is hiding out with her son in the metropolitan city, or in one of the Gyeongsang provinces.Earlier this month, her younger brother and Yoo’s brother-in-law, Oh-kyun, was taken into custody for similar charges of embezzlement. Kwon Oh- kyun was working for the Chonghaejin group as chief of Trigon Korea, a core affiliate of Chonghaejin Marine Co. He is also one of the key leaders of the sect. Though an extraordinary investigation team ― composed of about 80 prosecutors and policemen ― is striving to arrest Yoo and his family, the law enforcement agencies have come under public criticism for failing to do so, one month into the effort. Some are questioning the intention or willingness of the prosecution to arrest the fugitives, who are thought to have been involved in the ferry disaster, business irregularities and dubious practices while leading the religious group. More and more pundits and netizens say that the investigation team should be replaced and the National Assembly should reprimand the Justice Ministry through parliamentary inspections. The prosecution, however, has arrested Yoo’s older brother, Byung-il, and some of Yoo’s aides ― for colluding in his misdoings or masterminding his flight from the police ― via raids on Geumsuwon, a compound of the sect south of Seoul, and other locations over the past few weeks. Another female confidante, surnamed Kim, of the 73-year-old runway was taken into custody on Wednesday. Source : Korea Herald Jacht in problemen op Plaat van Breskens De KNRM Breskens heeft vrijdagmiddag een jacht van de Plaat van Breskens gehaald. Het zeiljacht was bezig aan een tocht van Curaçao naar Tholen, wat de nieuwe thuishaven van het jacht zal worden. Het jacht was bezig aan de etappe naar Breskens toen het voor de haven strandde op de Plaat van Breskens. Foto top : FLYING FOCUS luchtfotografie www.flyingfocus.nl

Via de jachtwerf werd reddingboot Zeemanshoop gealarmeerd. Het jacht is van de zandbank getrokken en weggesleept. Het is afgemeerd bij een jachtwerf. Twee weken geleden verging op de Plaat van Breskens nog een jacht waarbij twee Belgische zeilers te water raakten. Bron : Omroep Zeeland

Big bond secures freedom A $150,000 bond has been paid to allow Lake Triview crew members to depart from Port Taranaki.

Three crew, the ship's owner and operator have all been charged under the Resource Management Act that they most likely damaged the protected Waiwhakaiho Reef off New Plymouth as a result of the grounding of the vessel last month.

The ship, Singapore-flagged and Canadian-owned, dragged its anchor and went aground on the reef on May 25 where its hull was holed. On Wednesday, the ship's captain, Rolando Legaspi, his chief officer, Romelito De Asis, and able seaman Mark Aldrin Galapo, who was the lookout on the night, were charged with disturbing the Waiwhakaiho Reef which was likely to have an adverse effect. The ship's owner, Tri View , and operator, Fairmont Shipping Ltd Canada, were charged yesterday with contravening the act by permitting the grounding of the vessel on the reef.

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The reef is protected under the region's coastal plan. The owner and operator are charged with offences which carry maximum penalties of $600,000. The charges faced by the crew carry a maximum two-year jail sentence and $300,000 fines. Yesterday morning the three crew appeared in the New Plymouth District Court. Andrew Laurenson, the lawyer representing all the defendants, said the ship's agent, Phoenix Shipping Agencies Ltd, offered $150,000 as a surety that the men would return to New Zealand for future court hearings. The Taranaki Regional Council, represented by Andrew Britton, did not want to restrain the vessel going about its business. Laurenson asked that the three men, who were essential crew members, be allowed to return to the ship which was due to leave at 6pm yesterday. "They cannot leave without the three gentlemen on board," Laurenson said. Judge Geoffrey Ellis remanded the three crew to reappear in the New Plymouth District Court on August 7 following full disclosure. A plea would be expected at that time. However the judge said he did not have jurisdiction to hear the surety application. With that, a High Court judge, Justice Paul Heath, through a video link, heard the application and allowed the three crewmen to leave New Zealand waters on condition the ship's agents posted the bank bond of $150,000 by 4pm yesterday. If that did not happen, the three men were to hand over their passports and remain in New Zealand, he said. "There is no impediment to the vessel leaving Port Taranaki this evening," the High Court judge said. In a media release yesterday, TRC chief executive Basic Chamberlain backed the prosecution. "The reason for this prosecution by the Taranaki Regional Council is that it takes very seriously its obligations to protect Taranaki's coastal environment and enforcement action will follow where appropriate standards appear not to have been met." The investigation into the grounding and effects on the reef are continuing. Source : Taranaki Daily News Felixstowe extension By Larz Bourne

The THSD CAUSEWAY - Photo : Maaten de Wit ©

Work has started at the Port of Felixstowe on the latest expansion of the UK’s largest container port. VSBW Joint Venture, a consortium of VolkerStevin and Boskalis Westminster, has been appointed as the lead contractor to extend the port’s Berth 9 by 190m. The work will increase the combined lengths of Berths 8 and 9 to 920m, giving the port even greater flexibility to berth the world’s largest container ships. The Boskalis Westminster trailing suction hopper dredger Causeway has begun the initial dredging in preparation for construction to begin in the summer. The project will involve dredging 1 million cubic metres of material to provide the berth and approaches, and enable a new steel-piled quay wall to be built. Clemence Cheng, Hutchison Ports (UK) Limited CEO said: “The scale of operations at the Port of Felixstowe already gives us the ability to berth more large container ships simultaneously than other ports in the UK. The new extension will increase the berthing permutations we can offer and continue to ensure that we turn our customers’ vessels around in the quickest possible time. “Felixstowe’s location closest to the main shipping lanes and the ports of Northern Europe already saves our customers both time and money. Combined with the best road and rail connections to serve the UK, the new extension will further extend our advantage as the port of choice for deep-sea container ship operators.” Ian Cussons, VSBW project manager added: “We were delighted to secure the contract for the Berth 9 extension at Felixstowe and are ready to mobilise all the necessary resources in the very near future. The tubular pile design is very similar to the existing Berths 8 and 9 and will be built to allow the water alongside to be dredged to 18m depth.” Piling of the quay wall for the new extension will start later in the summer with construction due to complete in mid-2015. The new extension will be equipped with three new ship-to-shore gantry cranes, each with a 25 container wide outreach. Source : Maritime Journal

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The COSCO ITALY moored in Rotterdam-Europoort – Photo : Dirk van Uitert ©

Independent Consultants and Brokers in the International Tug and Supply Vessel market (offices in London and Singapore)

Telephone : +44 (0) 20 8398 9833 Facsimile : + 44 (0) 20 8398 1618 E-mail : [email protected] Internet : www.marint.co.uk Maritime security strategy: Shipowners call for more action on piracy and streamlining of port security measures European shipowners are calling for the European Parliament and the Council of Ministers to endorse a joint European Commission/European External Action Service (EC/EEAS) Communication, which outlines global actions to safeguard maritime security. “We commend the European Commission as well as the European External Action Service for taking into account the specificities of the shipping industry in this first-of-its-kind holistic strategy paper on maritime security” said Patrick Verhoeven, ECSA Secretary-General. Commenting on what has become the biggest scourge of maritime transport, Mr Verhoeven added: “In the fight against Somali piracy, the EU has provided invaluable assistance through its naval mission Atalanta. Despite the fact that pirate attacks off the coast of Somalia have considerably decreased, the situation remains easily reversible. We therefore urge the EU to maintain its naval presence in the area and continue the excellent work it has done so far”. A very different type of pirate activity and armed robbery, which has recently been on the rise in the Gulf of Guinea, calls for swift and immediate EU action. “We hope that the extent of the problem will be fully understood by Member States. Geopolitical realities of East and West Africa are worlds apart. This in turn means that the EU’s approach needs to be tailored to regional specificities.” ECSA is of the opinion that a first step towards eradicating piracy in the Gulf of Guinea is the setup of a safe and reliable reporting mechanism, as it is today still impossible to quantify attacks. The EU should also support the development by the International Maritime Organisation (IMO) of international standards for private armed guards, which will contribute in reducing ships’ vulnerability. In its attempt to encompass all security aspect of the shipping industry, the EC/EEAS Communication also touches upon ship and port security measures. Laudable as they are, the EU’s intentions should not lead to additional legislation in this area before making sure that synergies between existing initiatives have

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carefully been analysed and that the integration and simplification of the existing security measures have adequately been explored. Source: European Community Shipowners’ Associations AHTS rates crash

A build-up of tonnage in North Sea ports has seen earnings fall back, but activity is booming. UK numbers dropped to £12,000 per day, with Norway down at NOK 85,000.

The SKANDI FJORD approaching Aberdeen – Photo : George Saunders (c)

About 10 vessels have been fixed over the last two days and charterers were looking for another three. Three ships are completely charter-free in Norway, with the UK having another 12. The PSV market is still tight, with only two ships left open in the UK. Source : Tradewinds Left :Toisa Explorer on DP trials in Aberdeen Bay with sistership Toisa Elan at anchor in the background. Photograph taken from their other sistership Toisa Envoy. Photo : Dan Earl, Bosun onboard the Toisa Envoy" (c)

Tug Used in Ghost Ship Tow was Ill-Prepared Citing a lack of preparation, bad weather and a mechanical breakdown as three important factors, the Canadian Transportation Safety Board (TSB) released its investigation report (M13N0001) into the loss-of-tow by the tug boat Charlene Hunt of the MV Lyubov Orlova in waters off the coast of Newfoundland and Labrador (NL). On 23 January 2013, bound for the Dominican Republic, the tug Charlene Hunt departed St. John’s harbor towing the cruise ship Lyubov Orlova. The tug and tow traveled for approximately 19 hours, until they hit winds estimated at 40 knots and seas of 5 to 6 m. The heavy weather persisted and, at approximately 14:45 on 24 January, the towing arrangement between the tug and tow failed off Cape Race, NL. Throughout the remainder of that day and most of the next day, the Charlene Hunt stood by the Lyubov Orlova and reported to Marine Communications and Traffic Services regularly. Worsening weather and a mechanical breakdown aboard the Charlene Hunt forced the tug to abandon the tow and seek sheltered water near Cape Spear, NL, where the crew began repairs. The tow was not successfully resumed and the Lyubov Orlova was left derelict and adrift in international waters and is presumed sunk. The TSB investigation revealed a number of inadequacies. Chief among them was that the relief master did not adequately prepare to compensate for the environmental conditions that were encountered during the tow. The report observed that available guidelines respecting the design and construction of towing arrangements were not followed, and that the towing arrangement was inadequate for the intended voyage. The TSB investigation also made findings as to risk. In Halifax, Transport Canada (TC) inspected the Charlene Hunt and found deficiencies. Repairs were made and the tug proceeded to St. John’s to meet the Lyubov Orlova. Before the vessel’s departure for the Dominican Republic, TC had requested that the master contact their office in St. John’s upon arrival. The master did not report his arrival and the Charlene Hunt departed with the tow. Following the eventual loss of the tow and the vessel’s return to St. John’s, a TC inspection again revealed several deficiencies with the tug. The TSB investigation concluded that had an inspection been undertaken prior to departure, some of these deficiencies would have been identified. If Port State Control is not exercised and vessels that are unseaworthy are permitted to continue operating, there is a risk that the safety of the crew and the environment may be compromised.

Singapore's PSA is named best container terminal operator in Asia

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SINGAPORE's PSA International (PSA) has been named the Best Global Container Terminal Operating Company for the ninth year, and its Singapore Terminals took for the 25th time the award for the best box terminal operator in Asia. "This is a testament to the collective zeal and efforts of our staff, unions and management," said group chairman Fock Siew Wah at the Asian Freight & Supply Chain Awards (AFSCA) in Shanghai. Said group CEO Tan Chong Meng: "PSA will continue to work alongside our customers and port stakeholders to deliver best-in-class service through our network of ports around the world." Source : Asian Shipper

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The small Gas Tanker VICTOIRE in bound Western Port Bay for the Long Island Point oil / gas terminal Photo : Bill Barber (c)

ATLANTIC HANDYSIZE DRY: USGC market feels upbeat on increased enquiries

The US Gulf Coast Supramax market on is upbeat on the tonnage list slimming down from earlier in the month and the number of enquiries picking up, shipbrokers said. Despite this positive mood, no discernible rate increase has occurred and the route from USGC to Amsterdam-Rotterdam-Antwerp, basis 50,000mt, was assessed at $9,500/day on Thursday. However, shipping sources indicated that due to more sugar and grain cargoes coming available in the next month, they are expecting the market to rise within the next few weeks. There are reasons for optimism, but some shipbrokers were cautious about the chances of a recovery. There are a lot of vessels off-the-market at the moment doing business, so it is hard to see exactly what’s happening,” said a shipbroker. With the market moving horizontally and no areas seeing major rate increases, owners are keen to avoid having vessels open for too long. “At the moment the focus is keeping vessels employed,” said a shipowner. Some front-haul business from USGC has been heard this week and rates have stayed stable offering some support to the market. The time-charter rate on the grain route from USGC to the Far East, basis 50,000 mt, was assessed at $16,000/day for late June loading. The market on East Coast South America (ECSA) is static and the rate from ECSA-ARA, basis 50,000 mt for late-June loading was assessed at $12,000/day. “East Coast South America would be doing a lot better if the rest of the market was stronger, as a lot of owners sent vessels there,” said another shipbroker. The ECSA market is currently achieving higher rates than other markets, but because it has been static for a while it has made it a less attractive prospect for ballasters. This has kept the tonnage list in check and kept rates from falling. “Re-positioning costs [for vessels] to South America are high, which will deter some ballasters, and outbound returns currently don’ t justify it,” said a third shipbroker. The Panamax market is still struggling and time charter rates on front-haul routes to the Far East from Brazil were assessed at $12,000/day plus $200,000 bb. This rate is very close to the Supramax rate, with charterers rating a 56,000 dwt

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Supramax at $12,000/day plus $220,000 bb from Brazil to West Coast India. Ports in India and Malaysia require geared vessels though, so only geared Panamaxes can compete with Supramamxes for these routes. Some Chinese ports can accommodate ungeared vessels as well and Supramaxes and Panamaxes will be competing directly for stems to these ports. Source: Platts Nigeria to end reliance on foreign carriers NIGERIA has unveiled plans to recreate a new national shipping line after the African nation's former national carrier, Nigerian National Shipping Line (NNSL), was liquidated in 1995. The announcement was made in mid-May by the Nigerian Maritime Administration and Safety Agency (NIMASA) that the government intended to form a new national carrier over the next six months. The new shipping line would be based on a public-private partnership (PPP), aimed at avoiding the past mistakes of the government-owned NNSL, which was crippled by excessive government interference, constant management changes and corruption. Despite growth forecasts this year of 7.4 per cent GDP buoyed by rising oil exports and a population of 160 million, the largest in Africa, Nigeria has been entirely dependent on foreign shipping lines, reported Alphaliner. NNSL was then was declared structurally uncompetitive, with an uncompetitive fleet and high levels of indebtedness. It was finally driven out of business in September 1995. An attempt to continue with a national line was made with the creation of Nigerian Unity Line (NUL) in 1995, an entity owned by the Nigeria Maritime Authority that operated a single 502-TEU container ship, which was however sold in 1997 when NUL scrapped its liner activities. Several attempts to re-establish a national shipping line by Nigeria in 2010 and 2011 ended in failure. Source : Asian Shipper

Captain and crew of fire-stricken cargo ship to receive bravery award Captain Andreas Kristensen will pick up the honour from the International Maritime Organization in November

The International Maritime Organization has recognised the courage shown by Captain Andreas Kristensen and his crew in putting out an onboard fire on the DFDS cargo ship Britannia Seaways last November by bestowing them

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with an award. Kristensen will travel to London in November to receive the 2014 IMO Award for Exceptional Bravery on behalf of the entire crew. Some 70 nautical miles off the shore of Norway, the 11,000 deadweight tonne ship – carrying 70 tonnes of diesel, as well as aviation fuel and vast quantities of gasoline, reports IMO – caught fire, putting the lives of all 32 crew members at risk. Rescue helicopters arrived at the scene shortly after the fire broke out at 7pm, but they were unable to secure the crew, as the rescue process – which would have involved turning the ship windward – would have intensified the fire. Captain Kristensen made the decision to not evacuate the non-essential personnel from the ship, instead organising his crew to fight a raging fire that was producing flames of up to 30 metres high.

The fight continued for 13 hours until early the next morning, when the crew successfully extinguished the fire. In the end, nobody was injured and a potential pollution incident was averted. Captain Kristensen is no stranger to bravery. Back in 2011, a passenger on his ferry from Newcastle to Amsterdam fell overboard. "I was in my office when the second officer told me there was a man overboard," he revealed in a 2014 BBC documentary. "To be honest, I expected that it would be extremely difficult, perhaps impossible, to find anyone in the water, since it was already night-time and it was quite some sea." However, despite overwhelming odds, Kristensen turned the ship round to search for the overboard passenger, Jeni Andersen, and save her. "You feel a huge responsibility and urge to find her, but still you know that you are looking for that needle in a haystack," he explained. Source : The Copenhagenpost 9 Missing After Second Boat Capsizes Off Malaysian Coast Nine people were missing after a boat carrying 27 Indonesian workers overturned Thursday off Malaysia's west coast, the country's maritime agency said, in the second such accident in two days. On Wednesday, an overcrowded wooden boat carrying Indonesian migrants home sank in choppy seas, with 23 people still missing. Eleven people were confirmed dead and at least 63 survived. Maritime agency official Hamid Mohamad Amin said the second boat capsized early Thursday in rough seas about 12 miles (20 kilometers) off Sepang town on the outskirts of Kuala Lumpur. He said 18 people, including four women, were rescued by passing merchant ships but nine others were still missing.

One of the survivors was injured seriously and was hospitalized. Hamid said the small boat was believed to have been headed to Tanjung Balai on Indonesia's Sumatra island to bring the workers back ahead of the Muslim holy month of Ramadan. He said the boat was overcrowded and its capacity was only 10 people. Tens of thousands of Indonesians work without legal permits in plantations and other industries in Malaysia, and they travel between the countries by crossing the narrow Strait of Malacca, often in poorly equipped boats. On Wednesday, a boat with 97 Indonesians capsized about 2.5 miles (4 kilometers) from shore on the outskirts of Kuala Lumpur while trying to leave Malaysia illegally for Aceh province in Indonesia. District maritime official Mohamad Hambali Yaakup said several dozen vessels and a helicopter were scouring the area Thursday for the 23 missing people. The survivors, including 12 women and a child, were rescued at sea or found on land after they swam to safety. Two women and nine men were among the dead. Indonesian Ambassador Herman Prayitno told local media late Wednesday that the migrants on the boat to Aceh had paid up to $373 each for the trip back to Indonesia to celebrate Ramadan. He said the boat was overloaded.

"It is a sad tragedy," he said. "Many of them were in the country illegally as their tourist visas had expired and they had overstayed. They were finding work here but were on their way back to Indonesia for Ramadan." Such incidents are common in Malaysia, which has up to 2 million Indonesian migrants who are working illegally. Source : Huffingtonpost CGG and Sovcomflot announce 3D seismic joint venture CGG and Sovcomflot, ’s largest energy shipping company, have signed an agreement to form a joint venture company dedicated to conducting high-end 3D marine seismic acquisition services with a focus on Arctic and sub-Arctic waters. The joint venture, to be called Arctic Geophysical Exploration (AGE), will be 51 per cent owned by Sovcomflot and 49 per cent owned by CGG. The company will be incorporated in Russia with its headquarters in Moscow. Under the terms of the agreement, CGG will charter a fourteen-streamer ice-class vessel while Sovcomflot will add the capabilities of an eight-streamer ice-class vessel. The primary aim of the joint venture company is to offer world-class 3D marine seismic acquisition services to operators during the Arctic navigation season. In addition, the new company will offer its highly advanced vessel capabilities to the international market for the remainder of the year while

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benefiting from access to the most advanced seismic technologies from CGG’s worldwide operational and technical support. Source : Scandanavian oil & Gas Major fraud probe launched at RNLI after member of staff arrested A major fraud probe has been launched at the RNLI following the arrest of one of the lifeboat charity’s employees, the Daily Echo can reveal. Dorset Police have confirmed a 53-year-old Wareham man has been arrested on suspicion of fraud and bailed until next March. Police became involved after the RNLI made a complaint to Action Fraud, the UK’s national centre for reporting fraud and internet crime. The maritime rescue charity, based in Poole, is remaining tight-lipped about exactly how much money is involved in the alleged fraud – but the Echo understands it could be a considerable amount. It is also believed the relatively long time the suspect has been released on police bail – until March 2015 – signifies the complexity of the investigation. Both the RNLI and Dorset Police have confirmed a joint probe has been launched. In an official statement the RNLI said: “We can confirm that a member of staff has been arrested in connection with an alleged criminal offence.

“The RNLI takes any allegations of criminal behaviour very seriously and we are working closely with the police as well as conducting our own internal investigation. “As this is a criminal investigation, we are unable to provide further information at this moment.” Meanwhile, Dorset Police also confirmed: “The RNLI made a complaint of fraud to Action Fraud which was referred to Dorset Police on May 8, 2014, to be investigated. “As a result of the investigation a 53- year-old man from the Wareham area was arrested on suspicion of fraud and has been released on police bail until the middle of March, 2015.” Action Fraud is run by City of London Police and the National Fraud Intelligence Bureau.

IT COSTS £385,000 per day to run the Royal National Lifeboat Institution (RNLI), and all of this is donated by generous members of the public. Last year’s national RNLI total income stood at £182.7m, a £16.2m increase on the previous year. The charity is currently financing a number of ambitious new projects, including boathouses and the building of state-of-the art lifeboats. The volunteer organisation’s capital expenditure for 2013 was £48m.

Overall, last year’s running costs worked out at £144.6m. The maritime rescue charity’s people power is comprised 95 per cent from volunteers. They include 4,600 volunteer lifeboat crew and an additional 3,000 shore crew. Source : Daily Echo Nigeria: Why We Can't Stop Oil Theft in N'delta Besides, apathy by the locals to volunteer useful information has also hampered effective policing of the waterways, it was further learnt. Commander, Nigerian Navy Ship (NNS) Delta, Navy Captain Musa Gemu, dropped the hints on Thursday when members of the Nigeria Union of Journalists (NUJ), Warri Correspondents' Chapel, visited him at work in Warri. Gemu bemoaned that the Navy was under-funded, as some of the operational ships and boats were becoming obsolete and cannot be used to access the creeks of the Niger Delta.

According to him, government has not provided the Navy the needed logistics to enable it police the waters and do battle with those involved in illegalities in the region to a standstill. Such logistics as functional ocean-going boats, ships and gunboats, according to him, are obsolete, pointing out that "most of our boats and ships are as old as 50 years". He described as inaccessible most of the creeks where the illegalities were being perpetrated, noting that the Navy's helicopter had often sighted such illegal bunkering but the obvious lack of flat boats to access the creeks has slowed down the clampdown on the bandits. He recalled an island where massive illegal oil refining was going on, saying it took the Navy about a month to find an access point to the place, as the area was completely difficult to access because of thick mangroves. On arriving there, Gemu said: "what we saw and met on ground was unbelievable with large quantities of refined crude stored in the ground". The commander, however, patted his personnel on the

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back for a well-done job since he took the mantle of leadership at NNS Delta, as he has destroyed about 500 illegal refining plants. Source : Allafrica Apostleship of the Sea launches emergency fund for seafarers Seafarers’ charity Apostleship of the Sea (AoS) has launched a maritime emergency fund which aims to provide fast and modest cash grants to seafarers in difficulties. The dedicated fund is designed to respond to emergency financial or welfare requests from seafarers or their families in less than 24 hours, taking the immediate pressure off a stressful situation, the charity organization said Thursday in a press release.

“Most seafarers and fishermen enjoy good living and working conditions but there can be circumstances when crew are not paid, cannot access communications to speak to family and loved ones and even lack food, water and heating,” AoS Great Britain National Director Martin Foley said during the launch of the fund on board the HQS Wellington in London on June 19.

“AoS is often called upon to provide emergency support in what quickly becomes a very stressful and difficult situation for crew and their families, many of whom depend on remittances to pay for basics back home. Resolving these problems can take months so quick cash grants can really help. Our port chaplains are uniquely placed to judge whether a modest grant will alleviate a crew member’s situation without compromising efforts to resolve the underlying problem.”

Foley explained that when a need is identified, the port chaplain will contact either the National Director, (or, depending on the sum involved, the chair of the AoS Great Britain finance committee) to authorise the grant.

“Payment will then be made directly either to the chaplain, the seafarer or his family. This short chain will ensure payments are made quickly and without unnecessary bureaucracy. Experience tells us that Individual payments will be hundreds, rather than thousands of pounds.” Foley stressed the fund would not duplicate other existing sources of help for seafarers and fishermen. “Regular reports of grants made will be submitted to the AoS trustees’ finance committee, who at the end of each year will have the discretion to transfer any surplus to AoS’ general charitable funds for seafarers’ welfare. This is to avoid the accumulation of funds year on year.”

The following case studies illustrate the need for the Maritime Emergency Fund:

1. Seafarers family crippled by debt caused by unpaid wages For much of 2013, the ‘Independent’ was stranded in Shoreham port with all crew having left (without payment), save the Master and one seafarer who remained onboard. This seafarer hadn’t been paid for five months, leaving his wife and children in the Ukraine without income. They were surviving by borrowing and running up credit card bills. The lack of wages and increased borrowing to sustain the family’s income during this period was a significant cause of stress for both the seafarer and his family. In addition to providing practical support to the Master and the seafarer, AoS made a one-off emergency grant to the seafarer of US$1,000 (the average Ukrainian salary being US$300 per month. There was no other fund that could provide emergency support to this seafarer as existing funds would not give cash directly to a seafarer even where vetted by a charity engaged in the case, such as AoS.

2. Fishermen - emergency funds for food & communications On the 27 March 2013 AoS Seychelles was contacted to assist 27 Malagasy crew from two vessels that had been apprehended for alleged illegal fishing. The two skippers and one chief engineer were charged with illegal fishing in Seychelles waters. The 24 crew members were not been charged with any offence but remained on the fishing vessels as prohibited immigrants. The Acting Superintendent requested AoS Seychelles to intervene and assist the stranded crews. As well as emotional support AoS provided basics such as food. However, AoS in the Seychelles had little funds to purchase food, phone or SIM cards or to help with purchase of airline tickets and organize the crew’s travel documentation. There was no emergency fund that could support all these crew with immediate assistance as they were classed as fishermen rather than seafarers.

The Apostleship of the Sea, AoS, is a registered charity and agency of the Catholic Bishops’ Conferences of England & Wales and Scotland. It is wholly reliant on voluntary donations and legacies to continue its work. 90% of world trade is transported by sea, and more than 100,000 ships visit British ports each year. However the life of a modern seafarer can be dangerous and lonely, with harsh working conditions. AoS chaplains and ship visitors provide seafarers with pastoral and practical assistance regardless of nationality, belief or race.

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CASUALTY REPORTING

Last Saturday at 0400hrs AM there was a collision between the car carrier LORD VISHNU and 2 bunker barges at Southern Fairway at the Sudong Holding Anchorage, Singapore Photo’s : Capt Jim Stone ©

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NAVY NEWS

HMS D 33 DAUNTLESS enroute Amsterdam – Photo : Joop Marechal © PLAN inducts two Type 056 corvettes into South China Sea fleet China's People's Liberation Army Navy (PLAN) has commissioned two Jiangdao-class (Type 056) guided-missile corvettes into its South China Sea fleet, according to PLA- sponsored news outlets. Luzhou (592) and Qinyuan (589) were commissioned on 7 June and 11 June respectively. Luzhou was manufactured at Wuhan Shipyard in Hubei province while Qinyuan was built at the Huangpu Shipyard in Guangzhou.

The 1,500 tonne full-load displacement vessels have a length of 90 m and a beam of 11 m. They can reach a top speed of 25 kt and attain a standard range of 6482 km (3,500 n miles) at 16 kt. According to IHS Jane's Fighting Ships , class vessels carry an eight-cell launcher aft for FL-3000N short-range surface-to-air missiles, four launchers for C-802 surface-to-surface missiles, a 76 mm AK-176 main gun, and two 30 mm cannons. Source : IHS-Janes

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SHIPYARD NEWS

Ingalls, Navy authenticate keel on newest amphibious assault ship Tripoli The future USS Tripoli (LHA 7), an amphibious assault ship being built at Ingalls Shipbuilding in Pascagoula, has met its first major construction milestone. The laying of the keel traditionally marked the first step in ship construction, but with modern modular shipbuilding methods, the keel authentication ceremony recognizes the joining together of a ship's components. The keel is considered "the backbone on the ship," Ingalls President Brian Cuccias said.

On a bright and hot shipyard day, ship sponsor Lynne Mabus and retired Lt. Cmdr. Steve Senk, keel co-authenticators, affirmed that the ship's keel was truly and fairly laid. "This keel laying ceremony marks a significant first step in bringing shape to the Navy's next amphibious assault ship," said Capt. Christopher Mercer, amphibious warfare program manager within Program Executive Office, Ships. Mabus is the wife of U.S. Secretary of the Navy and former Mississippi Gov. Ray Mabus. She also spent summers in Pascagoula, she said, because it was her mother's home town. Her maternal grandparents both worked at Ingalls. "I'm happy and honored to be here for so many reasons," Lynne Mabus said, noting her wish is for the ship to be as successful as all the ships that came before it. "(Tripoli) will be a physical representation of America," she said. "She will be a tangible reminder of the history of the Marine Corps. She will be worthy of the Navy, of the Marine Corps, of the American people, and of the nation." The Navy Secretary, Gov. Phil Bryant and U.S. Sen. Thad Cochran, along with other guests, were on hand for the ceremony. Ray Mabus noted that "a Navy ship takes on the character and personality of her sponsor" before assuring the crowd that his wife will make an excellent sponsor. "She will hold this ship, the Navy and the Marine Corps close to her heart," he said.

Senk was serving as the chief engineer of the previous USS Tripoli (LPH 10) during Operation Desert Storm when it struck a submerged mine and was in danger of sinking. He entered the damaged area and kept the ship from sinking, a heroic feat for which he was awarded the Silver Star. Senk is now director of operations for Huntington Ingalls Industries' Continental Maritime San Diego division. LHA 7 is the third Navy ship to be named Tripoli. The name honors U.S. Marines and approximately 370 soldiers from 11 other nationalities who captured the city of Derna, Libya, during the 1805 Battle of Derna. The battle resulted in a peace treaty and the successful conclusion of the combined operations of the First Barbary War. Fabrication of the newest Tripoli began last July. The ship will be able to accommodate 1,204 crew (102 of those officers), 1,871 troops, Marine helicopters, AV-8B Harriers and support MV 22

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Osprey tilt-rotor aircraft and F-35B joint strike fighter aircraft. "It is truly a floating city," Cuccias said Friday. "The Tripoli will truly be a magnificent ship." Like the recently delivered America (LHA 6), the 844-foot-long Tripoli will provide the fleet with a more aviation-centric platform. The LHAs will replace the aging Tarawa class of ships and boast enlarged hangar decks, realignment and expansion of aviation maintenance facilities, more stowage for parts and support equipment and increased aviation fuel capacity. "The design brings with it increased capabilities and will maximize the Navy's investment in future aircraft," Mercer said. The ship will also be the first LHA replacement ship to deliver fully ready to integrate the entire future air combat element of the Marine Corps to include the Joint Strike Fighter, according to the Navy. Gov. Bryant today noted, "I appreciate the sound that goes on around us," as whistles blew and workers clanked. Each resident in the state of Mississippi is honored, he said, by the work that shipbuilders do every day in Pascagoula. "What you do here today will save lives and defend liberty," he told assembled workers. "Thank you for what you do." Source : Gulflive SHI looks to snare $900m boxship deal from DSME South Korean shipbuilding giants battle it out for a series of 19,000-teu containership newbuildings

South Korean shipbuilders DSME and Samsung Heavy Industries (SHI) are vying for a large containership project, with SHI trying to snatch a six megaship contract worth nearly $900m away from its domestic rival. Options for the 19,000- teu vessels at DSME held by China’s Bank of Communications (BoCom) and Minsheng Financial Leasing are being renegotiated, with the rival shipbuilder seeking to take the spoils, say broking sources. Yards are being pushed to meet a low price of $145m per vessel, with SHI coming closest with offers under the estimated market rate of $150m per ship because it needs to fill early delivery slots in 2016, brokers say. The Chinese lessor raised eyebrows last year when it placed orders for the first six ultra-large containerships of 18,000 teu in Korea on the back of long-term charters to Mediterranean Shipping Co (MSC), with deliveries scheduled for 2015. Specs on the larger options are said to have been slightly upgraded to take account of new cargo safety rules.

The Swiss-based operator has inevitably been mentioned as a potential charterer of the optional vessels but those close to MSC boss Gianluigi Aponte play it down. Newbuilding brokers add that rival boxship builder Hyundai Heavy Industries (HHI) is unable to compete because it does not have a yard in China and, consquently, does not comply with conditions needed to secure the Chinese financing. With the identity of the end-user of the ships unclear, some believe the Chinese options could be linked to a letter of intent (LOI) sought by the G6 Alliance, made up of Hapag- Lloyd, Mitsui OSK Lines (MOL), Nippon Yusen Kaisha (NYK), Orient Overseas Container Lines (OOCL), APL and Hyundai Merchant Marine (HMM). Recently, the G6 Alliance is said to have been looking at orders for ships of up to an unprecedented 23,000-teu capacity.

Others suggest there may be more than one containership newbuilding deal under discussion, with SHI said to be talking about a contract involving four firm vessels plus a quartet of options, and talk that CMA CGM may be involved in a possible newbuilding order. Observers say SHI has been undergoing a large internal review as it looks to diversify its operations away from offshore — and they question whether the prospective containership order under negotiation could be an attempt to get a stronger foothold in the large boxship sector. SHI is already building seven Chinese- financed, 9,300-teu containerships at its Koje Island facility for delivery to MSC and CMA CGM in 2015 and 2016, along with another eight veesels of this size being constructed for BoCom in China.Source :Tradewinds IHC Merwede Changes to Royal IHC His Majesty the King has awarded the honorary title of Koninklijk (Royal) to IHC Merwede. In a special ceremony today, the Mayor of Sliedrecht, Mr van Hemmen, presented this accolade to IHC Merwede’s CEO, Bram Roelse. In light of this honour, the company has decided to change its name to Royal IHC and will also include the royal crown in its revised corporate identity.

The Royal title is an award granted to companies or organisations that meet certain conditions. To qualify, the nominated company must have been in existence for at least 100 years and should have prestige with regard to its image, size and reliability. It must be of national importance to and have prominence in The Netherlands – preferably with an international outlook – and the size of the company, the number of employees and its annual turnover are also taken into account. In 2013, IHC Merwede had been in existence for 325 years. The predecessors of the Kinderdijk shipyards, L Smit & Zoon and J & K Smit, were already active in the 17th Century, while the other four IHC shipyards were involved from the late 19th Century (Gusto in Schiedam and Conrad in Haarlem) or

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the beginning of the 20th Century (Verschure in Amsterdam and De Klop in Sliedrecht). Finally, in 1943 the six shipyards – specialising in the construction of dredging equipment and tin mills – decided to a form of collaboration, Industrieele Handels Combinatie (IHC) Holland. Nowadays, IHC Merwede is renowned as the world’s leading supplier of efficient vessels and equipment for the dredging and wet mining markets, and recognised as a reliable supplier of innovative ships and supplies for offshore construction.

The presentation of the Royal title took place at the grand opening of IHC Merwede’s exposition at the National Dredging Museum in Sliedrecht, which – together with an exposition about the company in the Maritime Museum Rotterdam – will run until 23 November this year. the Sliedrecht exhibition (IHC Merwede: yards with a reputation) focuses primarily on the six shipyards, their products and people. The Rotterdam display (Hi-tec Dutch maritime) highlights the innovative contribution that IHC Merwede has made towards the welfare of man and society over the decades. This is shown by the impact of the company on key social developments, such as population growth, increasing world trade, growing energy consumption and the spiralling demand for minerals.

IHC Merwede’s CEO Bram Roelse says: "Obviously we are extremely proud of receiving this distinguished title – so much so that we have decided to change our company name to Royal IHC and add the royal crown to our revised logo. In this way, we have reverted the name back to the roots of our wonderful company, which now has more than 3,000 employees. “Merwede was added to IHC in 2005 after the merger between the two companies, but we feel that the new name matches the current need for projecting one company to the outside world and is also easier to pronounce on an international basis. The title and name symbolize the character of this company, in which keywords such as internationalization, innovation, pride, passion and dedication have played a very important role over the centuries." Source : MarineLink

After building 256 vessels over 90 years, Martinac shipyard in Tacoma facing foreclosure At nearly 90 years old, one of Tacoma's last major shipyards may be closing down for good next month. .M. Martinac Shipbuilding Corp. faces a foreclosure auction of its Thea Foss Waterway shipyard July 18 on the County City Building entry plaza unless it finds new business or an angel investor to pay some $415,000 in payments and fees overdue on a $5.4 million loan its owners signed in December 2012. The shipyard also owes Pierce County some $13,429 in property taxes for the last three years.

The shipyard, which has constructed 256 vessels since its beginning in 1924, reportedly is searching desperately to find new construction work to fill its ways at 401 East 15th Street on the east side of the Foss Waterway. The shipyard's last project, a 184-foot state-of-the-art longline fishing vessel called the Northern Leader, left the shipyard a year ago. Martinac built that fishing vessel for Lynden's Alaskan Leader Fisheries. During the construction of that vessel, Alaskan Leader loaned Martinac $5,479,000. Now it's Alaskan Leader that is moving forward on the foreclosure action because the overdue payments and the failure to pay taxes on the property puts Martinac in default of its loan agreement. Neither Joe Martinac Jr., the shipyard's president, nor officials at Alaskan Leader returned phone calls and emails regarding the foreclosure this week. A sole car occupied the parking lot outside the shipyard office Thursday morning, and the office door was bolted. Calls to Martinac's office were answered with voicemail.

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During better times, Martinac was one of the premiere builders of medium-sized vessels on the West Coast. During the middle of the last century, Martinac specialized in building large clippers for the tuna fishing industry. That market dried up when the industry moved to Asia and the South Pacific. In recent years, Martinac built a series of sophisticated harbor tug boats for the U.S. Navy and for private industry. That business ended two years ago.

The shipyard had successfully weathered long dry spells before including a five-year drought at the beginning of this century when it built no new boats. Martinac had repeatedly sought business building state ferries, but the state several years ago dropped the shipyard from the list of qualified bidders because it said the shipyard's finances didn't pass muster. Martinac sued the state.

In a compromise settlement, the state agreed to split work on its new class of ferries among three shipyards, Seattle's Vigor, Whidbey Island's Nichols Brothers and Martinac. Martinac lost that business, however, after Vigor, the state's largest shipyard, claimed its price for work on the boats was too high. Vigor sent that work to one of its own shipyards in Everett. Martinac championed a new design for ferries that incorporated propulsion systems that swiveled in a 360- degree arc to quickly move the boats in any direction without disengaging the power train. The state's designers favored traditional designs with fixed propeller shafts and rudders. While the news of Martinac's impending demise was unwelcome to civic leaders, it was not surprising to them considering the dearth of work at the shipyard. "It's very disappointing," said Port of Tacoma Commissioner Don Meyer. "But the handwriting has been on the wall for a while." Meyer is the retired executive director of the Foss Waterway Development Authority. The authority is charged with the revitalization of the near-downtown Tacoma industrial waterway. If the shipyard with its towering crane and metal ship construction buildings disappears, said Meyer, the waterway will lose a colorful source of diversity and wonder for the residents living on the west side of the waterway, he said. While the west side of the Foss has been redeveloped with condominiums, museums, apartments and restaurants, the east side remains more commercial with the shipyard, an aquatic research center and an oil tank farm among the structures along that shore. At the Port of Tacoma, spokeswoman Tara Mattina said the impending foreclosure was news to port executives. "It certainly will be a loss for Tacoma," she said. During its busiest times, the shipyard employed as many 300 workers, most of them making union wages and benefits. If Martinac isn't saved, it will be the latest in a string of major Tacoma shipyards that have gone under. In the early '90s Tacoma Boatbuilding Co. closed its two shipyards. Tacoma Boat built somewhat larger vessels than Martinac including medium-endurance Coast Guard cutters, chemical incinerator ships, patrol boats and ice- breaking tug boats. Another Tacoma shipyard, AK-WA, shut down its operations late in the '90s. AK-WA specialized in repair and modernization work on existing vessels. During World War II, a huge shipyard between the ends of the Hylebos and Blair Waterways built merchant ships and small escort aircraft carriers for the war effort. Some 30,000 people worked at that yard. Part of that yard is now occupied by SafeBoats Inc., which builds high speed patrol craft for the Navy and the Coast Guard and utility vessels for firefighting and police patrols in urban harbors. Source : DailyReporter

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Keppel Nantong Shipyard starts construction of PSVs for LUKOIL Nantong, China based Keppel Nantong Shipyard Co. Ltd on June 18 held a steel cutting ceremony for two offshore supply vessels to be built to the Russian Maritime Register of Shipping (RS) class, the classification society said Friday in a press release. "In accordance with an Agreement on the classification of ships under construction, signed by RS and Keppel Nantong Shipyard in the spring of 2014, RS provides a full range of classification and statutory services during their construction. Survey during construction will be implemented by the RS Branch Office in China. When the vessels comply with all applicable international requirements and RS rules, they will be assigned the class notation

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КМ✪ Arc4 [1] AUT1 ICS FF3WS DYNPOS-2 Supply Vessel," RS said. The vessels delivery is scheduled for September 2015. Source : PortNews ROUTE, PORTS & SERVICES

Van Oord to undertake dredging at Port of Koper The Port of Koper in Slovenia and The Netherlands-based company Van Oord have signed a contract for the deepening of the the access channel and northern section of Basin I at the port. The contract is valued at Euros 2.48 million and will see dredging take place along the container terminal to a depth of 14m. This will require the dredging of 230,000m3 of sediment. The Dutch company, which was the only company to respond to the tender, will commence work on 15 July and is due to complete the project in the second half of August. Source : Dredging News Online …. PHOTO OF THE DAY …..

The Indonesian ferry RAJARAKATA moored at Batam Island Photo : Piet Sinke (c) - Click on the photo !

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