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International Association of Marine and Shipping Professionals NEWS BULLETIN 08 – 14 Oct 2018 CALL US ON ++1 307 41102 @ [email protected] WWW.IAMSP.ORG

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Page 1: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

International Association of Marine and Shipping Professionals

NEWS BULLETIN 08 – 14 Oct 2018

CALL US ON ++1 307 41102

@ [email protected]

WWW.IAMSP.ORG

Page 2: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

The International Association of Marine and Shipping Professionals (IAMSP) is the

professional body for Marine and Shipping professionals world-wide, formed in 2015. The

association is an independent, non-political organization aims to:

Contribute to the promotion and protection of maritime activities of the shipping industry,

the study of their development opportunities and more generally everything concerning these

activities.

Promote the development of occupations related to maritime and shipping; serve as a point of

contact and effective term for the business relationship with the shipping industry (charter

brokers, traders, shipping agents, Marine surveyors, ship inspectors, ship-managers, sailors,

and stevedores etc.).

Ensuring the representation of its members to the institutions, national and

international organizations as well as with governments, communities and professional

groups while promoting the exchange of information, skills and the exchange of experience.

Develop the partnership relations sponsorship, collaboration between IAMSP and other

associations, companies, national and international organizations involved in activities

related to Maritimes and shipping.

Contribute to the update and improvement of professional knowledge of its members and

raise their skill levels to international standards.

Progress towards a comprehensive and integrated view of all marine areas and the

activities and resources related to the sea.

About I.A.M.S.P

Page 3: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Container shipping: Low-sulfur rule unknowns come into view

INTERNATIONAL news

12/10/2018

By Hugh R. Morley, Senior Editor

Container carriers are expected to adopt a variety of methods to meet the International Maritime

Organization‘s Jan. 1, 2020 mandate that they reduce vessel sulfur emissions. Photo credit:

Shutterstock.com.

The many uncertainties over the implementation of the new low-sulfur emission regulations to take effect

in 2020 include whether enough low-sulfur fuel will be available, how the rules will be enforced and

whether shippers will feel an impact beyond higher prices, speakers at a forum on the impact on the supply

chain on Thursday.

Container carriers are expected to adopt a variety of methods to meet the International Maritime

Organization‘s (IMO‘s) mandate that they reduce vessel sulfur emissions, among them the use of low-

sulfur fuel, scrubbers to reduce the emissions from regular fuel, or using ships powered by natural gas. The

IMO mandate calls for a reduction in sulfur emissions to 0.5 percent from 3.5 percent beginning on Jan.

1, 2020.

Will there be enough low-sulfur fuel?

Yet it‘s far from clear whether there will be enough low-sulfur fuel to meet the needs of the shipping

industry, Beth Rooney, assistant director of the port division of the Port Authority of New York and New

Jersey, told a forum on the IMO mandate Thursday at Rutgers Business School, in New Brunswick, New

Jersey. Only a relatively small number of ocean carriers have said they will use scrubbers, which reduce

sulfur emissions produced by the use of regular fuel, leaving a large portion of the sector likely looking to

use low-sulfur fuel.

―One of the greatest fears out there is, is there enough supply?,‖ Rooney said, adding that trying to find out

is not easy. Low-sulfur fuel providers that are preparing for the start of the mandate need to be more

―transparent,‖ and communicate more to the shipping industry about what supply can be expected, and

whether it will be available in key locations, she said.

―New York-New Jersey is a huge bunker for it,‖ she said. ―And when we talk to suppliers up here in New

York and New Jersey right now, they are not seeing that there will be sufficient supplies.‖

The IMO rule is estimated to add from $5 billion to tens of billions of dollars to the annual container

shipping industry fuel bill, and ocean carriers are struggling to prepare for the mandate, even though it

won‘t take effect for more than a year.

Four global container lines — Maersk Line, Mediterranean Shipping Co., CMA CGM, and Hapag-Lloyd

— have separately outlined bunker adjustment factors (BAFs) that will help pay for the additional cost of

meeting the requirements. Hapag-Lloyd has calculated the regulation could add $184 to $264 per TEU,

depending on the prevailing price of fuel, and CMA CGM has put the cost per TEU at $160.

Others are looking at slow-steaming to bring down the costs of using the fuel, which is expected to be 50

percent more expensive than the current high-sulfur variant. APL confirmed this week at TPM Asia in

Page 4: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Shenzhen that slowing ships would be a strategy employed to cope with the cost hike. Maersk Line has also

said it will use the strategy.

Possibility that carriers could skip ports

Speaking at the forum, Rudolf Leuschner, associate professor at Rutgers University‘s Department of

Supply Chain Management, suggested that the added cost could prompt ocean carriers to focus on serving

only two or three ports, including the largest, on the US East Coast, rather than stopping at several ports as

a vessel moves along the coast.

―If I am a ship [carrier] now stopping at every major port, starting in Jacksonville, Savannah, Charleston,

etc. as I make my way up to New York-New Jersey, I think I am going to consider skipping some of these

ports if every time I am wasting miles, wasting fuel,‖ he said. ―We are going to see a selection process

where some of the more important, or bigger, ports are going to receive more traffic while the smaller ports

are going to see a decrease in traffic.‖

Michael Bohlman, a maritime consultant and former chairman of the Chamber of Shipping America, said

concern over a shortfall in low-sulfur fuel also surfaced when certain countries, among them the United

States, adopted the IMO‘s 0.1 percent sulfur fuel standard in 2015, which applied to ships within 200 miles

of their borders. Once it took effect, however, there was no shortage, Bohlman told the forum, which was

organized in part by the school‘s Center for Supply Chain Management.

Still one big difference between the 0.1 percent mandate and the IMO‘s 2020 mandate that could cause a

problem is that there is currently no standard defining the characteristics of 0.5 percent low-sulfur fuel, as

there was in the past, he said. The absence of a standard could initially disrupt some vessel operations

unless low-sulfur providers come together and come up with a standard, he said.

―The fuel you get from Port A, and the fuel you get from Port B may not be compatible, even if they are

both 0.5 percent sulfur,‖ he said. ―If you mix them in the same tank, you have got a significant potential for

problems.‖

Initially, he said, ―You are going to have some [ship] delays because of those compatibility issues. It may

be a day late getting into port. There are going to be some issues with reliability.‖

Non-compliance consequences

What happens if carriers don‘t comply with the new rules is also unclear, he said. Ensuring that ocean

carriers keep to the IMO‘s mandate is the responsibility of the country under which a ship‘s flag is

registered, and also the ports at which a ship calls at, speakers at the forum said.

In general, ships will have to create an energy efficiency plan and countries will have the right to audit the

ship to ensure it is keeping to the plan, Bohlman said. Data on a ship‘s compliance will then be submitted to

a global registry that shows ―ships that are typically compliant and ships that aren‘t typically compliant,‖

he said.

Severe offenders could be detained by authorities, or have their flag pulled, he said. Still, only a small

number of ships will likely be inspected, and it‘s not clear what enforcement actions can be taken.

―The problem is that those parameters, when you detain a ship, when you pull its flag, aren‘t defined,‖ he

said. ―So it‘s a very much open question right now as to how far this will really go and how severe it will

be.‖

Page 5: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Dry bulk shipping South Africa: Record-breaking manganese ore train sets off on Sishen -

Saldanha corridor

Rooney, however, said the extensive anxiety over the low-sulfur mandate may turn out to be misplaced.

She predicted that the issue may cause less of a disruption to the industry than feared, in the way that past

industry changes – most recently the IMO‘s Safety of Life At Sea, or SOLAS rules, that took effect in 2016

– turned out to be.

―There will certainly be a cost to shippers of low-sulfur fuel. But I believe that the impact on the shippers

will not be material when it comes to the efficiency of the supply chain, the time in which containers are

moving,‖ she said. ―Shippers will just adjust.

Typically, in past scenarios, ―the industry adapts, and reacts, and when we are in the midst of planning for

it, it seems like something that is just monumental and catastrophic and, ―Oh my gosh how are we going to

deal with this?‘,‖ she said. ―And then ultimately, the industry is very resilient and figures it out.‖

[JOC.com]

12/10/2018

Transnet Freight Rail, which is not one of the world leaders in heavy-haul rail transport for nothing, last

week ran a train measuring an impressive 375 wagons in length on the Saldanha corridor from the mining

area of the Northern Cape to the port at Saldanha.

That‘s a train measuring four kilometres!

Making this all the more remarkable, the record-breaking train ran the entire distance of the line, 861

kilometres, and following its success will now become a production train that goes into regular service.

Credit: Africa PORTS & SHIPS Maritime News

Page 6: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Port development Sweden: Gothenburg expansion kicks off

The testing took place on 5 September 2018 between Sishen and the port at Saldanha with the train carrying

a full load of manganese ore for export. The existing trains in the corridor consist of 342 wagons, measures

3,780 metres and carry weights of 42,000 tonnes. They carry cargo to the port that generally consists of iron

ore or manganese.

―This is in line with TFR‘s business objective of applying the heavy haul operating, maintenance, design,

construction and best practice principles on general freight operations, and Transnet‘s strategy of migrating

traffic from road to rail,‖ said, TFR Chief Operating Officer (COO) Mr Lloyd Tobias.

The reason for further ramping up the size and length of the manganese trains is to maximise manganese

volumes railed between the mines near Hotazel via Sishen to Saldanha by optimising the use of existing

assets, locomotives and wagons, all within the installed infrastructure constraints. According to TFR‘s

General Manager for the Iron Ore and Manganese Business Unit, Mr Russell Baatjies, there was an option

of increasing manganese rail capacity to respond to customer demand by upgrading the existing railway

feeder lines and build new rolling stock.

―That option would have cost us significant capital. The project team was challenged to explore the use of

technology through Industry 4.0 solutions, to achieve the same objective at minimum cost. Applying

distributed power technology to increase the train length to 375 wagons will reduce capital requirements by

over 90% of the initial estimate.‖

Transnet said yesterday that following the successful execution of the test train, it will embark on a journey

to operationalise the 4-kilometre long train, which is meant to meet the needs of manganese customers

within the Hotazel area and the emerging miners.

[Africa PORTS & SHIPS Maritime News]

12/10/2018

After years of planning and preparation, construction of an entirely new terminal in the outer area of the

Swedish Port of Gothenburg has started.

Page 7: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Terminal operators UK: Forth Ports’ new owner sells minority stakes

Conceptual illustration. The new terminal (the dark area in the centre of the image) will be 220,000 square

metres in size, equivalent to 30 football pitches. Image: Gothenburg Port Authority

The project will be the largest expansion undertaking at the Port of Gothenburg in 40 years. Phase 1 started

with piling earlier in the week. The 220,000 square meter terminal will be constructed using dredge spoils

contained by an embankment, and is scheduled for completion around 2025.

―It feels very exciting indeed that we can finally break ground in the biggest development project at the port

since the 1970s. The terminal is a vital part of the long-term expansion plans at the port, and it will reinforce

Gothenburg even further as the logistics capital of the Nordic region,‖ said Magnus Karestedt, Gothenburg

Port Authority chief executive.

The terminal, which will cover an area of 220,000 square meters, will be built using 350,000 cubic meters

of dredge spoils from the river, the Göta Älv. The spoils derive from routine dredging carried out to

maintain the water depth. Both the dredge spoils and the river are contaminated with various substances,

including TBT, tributyltin. Up until 2008, TBT was an antibiocide component in antifouling paints used for

the hulls of ships and boats before research showed that it was toxic to the marine environment.

The spoils are placed in an embanked area in the Arendal Bay and cement and slag are used as binding

agents. To ensure the spoils can be enclosed safely without them seeping into the surroundings, a series of

comprehensive field trials have been conducted, both in a laboratory setting and in a small test basin in

Arendal Bay.

[Dredging Today / Gothenburg Port Authority]

12/10/2018

By Linton Nightingale

PSP Investments, the Canadian pension fund manager, has announced the completion of its share acquisition

in Forth Ports to gain full control of the UK‘s largest port operator.

Last week, PSP Investments reached an agreement with Arcus European Infrastructure Fund to purchase its

62.6% stake in Forth Ports, taking it to 100% ownership of the company in the process, having previously

held the rest of the company‘s remaining shares. Announcing the closure of the deal, PSP Investments said it

had sold minority stakes to long-term investment partners, including GLIL Infrastructure, First State Super,

and Construction and Building Unions Superannuation. PSP Investments has not disclosed details of either

the size of stakes taken by investors in Forth Ports or the purchase price value.

Forth Ports owns and operates eight UK port facilities in the UK, including Grangemouth, Dundee and

Tilbury on the banks of the River Thames, where a second major terminal, Tilbury 2, is being developed.

[Lloyd‘s Loading List]

Page 8: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

:

Port development Canada: Trois-Rivières presents its strategic development plan up to

2030

11/10/2018

The first phase of construction of the multi-purpose Berbera port in Somaliland has started, which will

include a 400-metre quay and 250,000 square metre yard extension as well as the development of a free

zone for a new regional trading hub.

Credit: Port Technology International

The DP World Berbera will also serve land-locked countries in the Horn of Africa such as Ethiopia, which

has a 19 per cent stake in the project as a shareholder.

Shafa Al Nahda Contracting has been awarded the contract for the port expansion. It has been involved in

the Port of Dakar expansion in Senegal as well the Port of Maputo expansion project in Mozambique.

[Gulf News]

12/10/2018

The Trois-Rivières Port Authority recently presented its strategic development plan up to 2030.

In addition to continuing investments in port infrastructure, the ‗On Course for 2030‘ plan also considers

the fact that the port‘s facilities are literally surrounded by the city.

The port is planning to build, inter alia, new storage spaces and new wharves west of its facilities. These

projects will add approximately 175,000 sqm to the current terminal surfaces. In addition, the efforts for

the development of the industrial port zone will continue thanks to a partnership between the city,

Terminal operators Somaliland: DP World starts construction of Berbera port

Page 9: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Port development Canada: Government ruled Halifax expansion unsuitable

Port development Portugal: Azores region to invest €32 million in Ponta Delgada port

Flags of convenience: U.S. Coast Guard rescues 10 from Tanzania-flagged cargo vessel

adrift in Atlantic Ocean

IDÉ-Trois-Rivières and the port. The total investment for the maintenance and upkeep of existing

infrastructure, as well as in new terminals and wharves, is estimated at CAD 125 million.

[International Transport Journal]

11/10/2018

Nova Scotia's federal cabinet minister is supporting the Canadian Government‘s decision not to fund a major

expansion at the Port of Halifax, claiming traffic and proposed land use could be problematic.

Halifax wants to expand to accommodate larger container ships so that it doesn‘t lose trade to US ports, but

the port‘s application for a CAD$400m expansion was rejected, reported CBC. Meanwhile, the government

has announced CAD$300m in upgrades for ports in Vancouver, Montreal and Quebec.

After the application was rejected, the port announced plans this summer for a CAD$35m temporary

extension of the Halterm container pier in the city's south end to accommodate a second berth for ultra-class

container ships. This is expected to be funded by a loan.

[Port Strategy]

11/10/2018

The Azores regional government plans to invest €32 million ($37 million) in the overhaul of the

infrastructure of Ponta Delgada port, which concentrates 64% of the cargo traffic of the islands.

With the project, the regional government intends to allow the port have adequate infrastructure for what is

expected in the sector in the next 10-15 years. The embankment area for 20- and 40-foot containers will

―increase significantly‖, and in the case of 40-foot containers, the capacity will increase from 224 spots to

540.

The regional government representative Ana Cunha said that the announcement of the opening of the dock

tendering and repaving of the port embankment will be sent this week for publication in the state gazette

Diário da República.

Last Monday, Portos dos Açores SA, the public operator of ports on the Azores Islands, announced plans to

invest €145 million ($166 million) in port improvement projects until 2020.

[PortSEurope]

11/10/2018

Page 10: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

The U.S. Coast Guard has rescued 10 crew members who were stranded aboard the disabled general cargo

ship ALTA, adrift for almost 20 days in the middle of the Atlantic.

MV Alta in Greece. Credit: Dimitris Mentakis / MarineTaffic.com

The 10 seafarers were picked up Monday by the

crew of the USCGC Confidence approximately

1,380 miles southeast of Bermuda. The Coast

Guard says it was notified September 30 that the

250-foot vessel ALTA sailing under the flag of

convenience of Tanzania became disabled on

September 19, while transiting from Piraeus,

Greece, to Haiti, and were unable to make repairs.

The crew from Panama, Honduras and Greece

reported that they had enough food for two days

and water for 15 days, and that there were no

injuries or immediate medical concerns.

Earlier attempts by the vessel owners to dispatch tugs from Venezuela, Guyana, and the Bahamas fell

through. USCGC Confidence arrived at the scene on 8 Oct and offered and assistance to the ship‘s crew as

negotiations for tug assistance ashore continued.

Page 11: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

The Coast Guard Cutter Confidence arrives on scene with the disabled cargo ship Alta to provide assistance

in the Atlantic Ocean, 7 Oct 2018. Credit: U.S. Coast

An aircrew on an HC-130 Hercules airplane from Coast Guard Air Station Elizabeth City dropped about a

week‘s worth of food to the crew on 2 Oct, helping to sustain the men until help could arrive. The

Confidence is now taking the 10 men to Puerto Rico where it is expected to arrive on Friday.

Source: Equasis

According to Equasis, during the last ten years the 42-year old ALTA was owned and managed by five

different companies. Since Sep 2017, the owner/operator is Alta Shipping LLC, a limited liability mailbox

company established and incorporated in Miami FL, USA. Public records of Florida show that the company

was established a fortnight before the acquisition of ALTA.

DNV GL carried out the last class renewal survey of the ALTA in Dec 2011. Classification of the vessel was

suspended in Jul 2013 and withdrawn in Nov 2013. In other words, the vessel is plying the seas without

classification since almost five years. However, this fact must have escaped the Port State Control authorities

in Greece and Italy where the vessel was subject to three ‗more detailed and expanded inspections‘ between

Oct 2015 and Aug 2018 under the Paris MOU on Port State Control.

The last Black List of the Paris MOU qualifies the flag of convenience of Tanzania as ‗very high risk‘,

ranked Nº 70 of a total of 73 flag state countries.

Page 12: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Paris MOU on Port State Control Black List (effective from 1 Jul 2018)

Source: Paris MOU

Page 13: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

[Insurance Marine News / Equasis / Paris MOU / The Maritime Executive]The town already has oil and gas

loading teBrmuinnkaelsr,ibnugi:ltMsianecers2k01le3a, stheast foeieldsptioprealigneesintraSnisnpgoartpinogretheahfueealddiorefc2tl0y2t0o Yreugnunlaantipornovsince in

Western China. A rail link is planned to connect the container port.

Tanzania closes its open registry

Tanzania has temporarily closed its maritime registry to foreign vessels while it reviews the status of all ships

flying its flag. President John Magufuli announced the suspension on Friday in response to a string of arrests

involving Tanzanian-flagged vessels for drug smuggling and gun-running. “We cannot allow the name of our

country to be tarnished by individuals pursuing their selfish interests,” Magufuli said.

Tanzanian Vice-President Samia Suluhu Hassan also announced that the government is suspending the

registration of two vessels arrested for illicit activity. These include the Andromeda, which was detained in

Crete with a load of explosives bound for Libya, and the Kaluba, which was recently seized off the

Dominican Republic with over a tonne of cocaine on board. Hassan added that Tanzania will be pursuing

action against the individuals who registered these ships.

Tanzania ranks second from the bottom of the Paris MOU blacklist, and only ships registered in the

Democratic Republic of Congo are detained more frequently in European ports for inspection deficiencies.

Last year, it bowed to international pressure and de-registered 45 vessels that were suspected of violating

UN sanctions on North Korea.

The full closure of its flag state services may be unprecedented for an open registry. Tanzanian sources

indicated that foreign-owned vessels were flagged by the semi-autonomous region of Zanzibar, an island

about 15 nm off the nation's coast that has been described as the "African Hong Kong" for its special

political status. According to an archived snapshot of its site, the "Tanzania Zanzibar International Register

of Shipping" offers both permanent and demolition voyage registration, and can also create corporate

entities via an online form. As of Monday its website was available to registered users only.

Source: The Maritime Executive: Tanzania Closes its Open Registry [22 Jan 2018]

11/10/2018

Maersk Oil Trading has leased oil storage space in Singapore, indicating a push into the Asian bunkering

hub, especially as we get near to the 2020 sulphur cap.

As Reuters reported, the company has leased 120,000 cubic meters of space for fuel oil for six months.

Until now, Maersk Oil Trading did not have its own storage tanks in Singapore for the supply of fuels to its

customers, including Maersk. This development comes at a time when the shipping industry is trying to

decide the best way to comply with the 2020 regulations.

A few months before, Maersk got into a deal with Royal Vopak to launch a 0.5% sulphur fuel bunkering

facility in Rotterdam. This will meet around 20$ of Maersk‘s demand for IMO 2020 compliant fuels. The

lease also comes at a time of an unbalanced market, something that made many suppliers not to renew their

fuel oil storage contracts in Singapore. This situation becomes even more difficult considering the high

fuel prices, which are challenging traders to recover the costs of storage.

Page 14: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Ship finance: Moody’s lauds German shipping banks’ de-risking measures

Archeology: Ancient shipwrecks found in Greek waters tell tale of trade routes

[SAFETY4SEA]

11/10/2018

By Michael Hollmann

German banks have received good marks from rating agency Moody‘s for their portfolio restructurings over

the past years.

According to its latest report on German ship lenders released on 11 October, German banks‘ combined

absolute exposure to shipping clients and projects has dropped to EUR39 billion (USD45 billion) as per the

end of June this year from EUR81 billion in 2015. More importantly, their aggregate exposure relative to

their combined tier 1 core capital was reduced from 100% in 2015 to about 60% at the end of 2017, Moody‘s

reports.

Some banks continue to be burdened more heavily by shipping risks, with Frankfurt‘s DVB Bank and

Hanover-based Norddeutsche Landesbank (Nord LB) retaining worryingly high gearings to ship lending

with leverage ratios of 9.8 and 1.9 times their tier 1 capital, respectively, the rating agency points out. Nord

LB is studying options for a capital increase with the help of private investors while parts of DVB Bank were

reported to have been put up for sale by its parent group, DZ Bank, earlier this year, Reuters reported in

spring.

―German banks have significantly reduced their aggregate exposure through active management, loan

restructurings, sales of bad debt, and securitisations,‖ explained Swen Metzler, vice-president and senior

credit officer at Moody‘s. Hence, their footprint in ship financing is now better balanced with their loss-

absorbing capacity, so it no longer presents a ―significant tail risk for the German banking system‖.

Ship loan asset quality remains poor, though, according to Moody‘s, which estimates that the aggregate

non-performing-loan ratio for German ship finance lenders was about 40% at the end of 2017. To improve

their protection from losses, the country‘s banks lifted their aggregate coverage ratio for shipping loans

through additional loan loss provision to 48% from 44% in 2015, the report says.

New lending to shipping from them has been marginal since then, as from other European banks, too. The

total ship lending volume of European banks is estimated to have dropped from EUR300 billion in 2012 to

just EUR200 billion at the end of 2017, although the world fleet grew by about 11% over the same period.

―Meanwhile, the appetite for ship financing has shifted east, with Asian banks and leasing companies

stepping into the gap left by west European firms,‖ Metzler pointed out.

[Fairplay]

11/10/2018

By Vassilis Triandafyllou and Idyli Tsakiri

Page 15: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Archaeologists in Greece have discovered at least 58 shipwrecks, many laden with antiquities, in what they

say may be the largest concentration of ancient wrecks ever found in the Aegean and possibly the whole of

the Mediterranean.

Credit: Vasilis Mentogianis / RPM Nautical Foundation

The wrecks lie in the small island archipelago of Fournoi, in the Eastern Aegean, and span a huge period

from ancient Greece right through to the 20th century. Most are dated to the Greek, Roman and Byzantine

eras.

Although shipwrecks can be seen together in the Aegean, until now such a large number have not been

found together. Experts say they weave an exciting tale of how ships full of cargo travelling through the

Aegean, the Mediterranean and the Black Sea met their fate in sudden storms and surrounded by rocky

cliffs in the area. "The excitement is difficult to describe, I mean, it was just incredible. We knew that we

had stumbled upon something that was going to change the history books," said underwater archaeologist

and co-director of the Fournoi survey project Dr. Peter Campbell of the RPM Nautical Foundation.

The foundation is collaborating on the project with Greece's Ephorate of Underwater Antiquities, which is

conducting the research. When the international team began the underwater survey in 2015, they were

astounded to find 22 shipwrecks that year. With their latest finds that number has climbed to 58, and the

team believe there are even more secrets lying on the seabed below.

"I would call it, probably, one of the top archaeological discoveries of the century in that we now have a

new story to tell of a navigational route that connected the ancient Mediterranean," Campbell told Reuters.

The vessels and their contents paint a picture of ships carrying goods on routes from the Black Sea, Greece,

Asia Minor, Italy, Spain, Sicily, Cyprus, the Levant, Egypt and north Africa. The team has raised more than

300 antiquities from the shipwrecks, particularly amphorae, giving archaeologists rare insight into where

goods were being transported around the Mediterranean.

Page 16: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Oil & gas shipping Cyprus: EU to issue tender documents for €500 million Vasiliko LNG

terminal

"Ninety percent of the shipwrecks that we found

in the Fournoi archipelago carried a cargo of

amphorae. The amphora is a vessel used mainly

for transporting liquids and semi-liquids in

antiquity, so the goods it would be transporting

were mostly wine, oil, fish sauces, perhaps

honey," archaeologist and Fournoi survey project

director Dr. George Koutsouflakis from the

Ephorate of Underwater Antiquities, said. Fish

sauce from the Black Sea region in antiquity was

an expensive commodity, he added.

They were particularly excited by amphorae they

found originating from the Black Sea and north

Africa in shipwrecks from the late Roman period,

as it is rare to find cargo from these regions intact

in shipwrecks in the Aegean, said Koutsouflakis.

Bad weather is the most likely explanation for why the ships all sank in the same area, he said. The region

experiences lots of sudden, fierce squalls and is surrounded by rocky shores. Fournoi was a stoppover point

for ships to spend the night during their journey.

Credit: Vasilis Mentogianis / RPM Nautical Foundation

"Because there are narrow passages between the islands, a lot of gulfs, and descending winds from the

mountains, sudden windstorms are created. It is not a coincidence that a large number of the wrecks have

been found in those passages...if there is a sudden change in the wind's direction, and if the captain was

from another area and was not familiar with the peculiarities of the local climate, he could easily end up

losing control of the ship and falling upon the rocks," said Koutsouflakis.

In later times Fournoi was considered a pirate's haven, said Campbell. Pirates were drawn to the area by the

abundant flow of vessels laden with rich cargo. Although weather was believed to be the primary reason for

the sinkings, piracy may have contributed in some cases, he said.

The condition of the shipwrecks vary. Some are well preserved, others are in pieces after the ships crashed

on the rocks. "We have wrecks that are completely virgin. We feel we were the first ones to find them, but

they are in very deep waters - at a depth of 60 meters. Usually from 40 meters and below we have wrecks in

good condition. Anything above 40 meters has either lost its consistency or has been badly looted in the

past," said Koutsouflakis.

The survey team discovered the shipwrecks from sightings by local sponge divers and fishermen. Fournoi

is made up of 20 small islands, islets and reefs between the larger Ikaria, Patmos and Samos islands. The

population does not reach more than 1,500, mainly located on the main island of Fournoi. The team, which

includes archaeologists, architects, conservators, and divers, want to create a centre for underwater

archaeology in Fournoi for students, as well as a local museum to house their finds.

[Reuters]

11/10/2018

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Oil & gas shipping: Flex LNG splashes out over $900 million on five LNG carrier newbuilds

Container shipping: 2020 sulphur fuel cap may spark a crisis for carriers that can't recover

the cost

An open tender for the liquefied natural gas (LNG) reception infrastructure (FRSU – Floating Storage

Regasification Unit (FSRU) of a total estimated value of €500 million has been announced by the Natural

Gas Infrastructure Company (ETHFA), to be issued by the European Commission (EU).

Following the completion of a feasibility study in 2016, the Cypriot government decided to proceed with

the deployment of facilities for the import, storage and regasification of LNG in the Vasilikos area. It is a

requirement of the government that the project be completed by November 30, 2020.

The project involves the supply of a floating gas storage and regasification unit with a storage capacity of

at least 125,000 m³, the possibility of unloading liquefied gas from ships carrying gas from 120,000 m³ to

217,000 m³, construction of marine infrastructure for the permanent mooring of the floating unit and

ground-based gas infrastructure and other related infrastructure for the transport of natural gas to the power

plant in Vasiliko and possibly other consumers.

Deadline for submission of tenders or requests to participate is January 18, 2019. Minister of Energy

George Lakkotropis said that the estimated budget for the design and construction of the project is €300

million and an estimated €200 million for 20 years of operation and maintenance of the project. The

European Commission is supporting the project with funding of €101 million.

[PortSEurope]

11/10/2018

Flex LNG has announced a $300m private placement, the proceeds of which will be used to acquire five

LNG carrier newbuildings from the company‘s largest shareholder, John Fredriksen‘s Geveran Trading.

The vessels are currently under construction, with three MEGI LNG carriers being built at DSME,

scheduled for delivery in 2020, and two X-DF LNG carriers being built at Hyundai Samho, scheduled for

delivery in 2021.

Flex is paying $180m for each vessel, with an additional $6m premium on each of the three DSME vessels

for the addition of full reliquefaction systems. Funds from the $300m private placement, which Geveran

has guaranteed will be fully subscribed, will be used to place a 30% deposit on the acquisition.

[Splash 24/7]

11/10/2018

By Sam Whelan, Asia correspondent

The IMO‘s 0.5% sulphur fuel cap will cause an ―existential crisis‖ for container carriers, unless they can

pass on the added bunker costs to shippers.

APL chief executive Nicolas Sartini said carriers had little choice but to opt for considerably more

expensive low-sulphur fuel from January 2020, since the alternatives – using LNG or fitting ships with

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Container shipping Brazil: Coffee exports rise but lack of container space in ships hits trade

scrubbers – were not viable short-term solutions. ―We are 100% behind the regulation as it‘s good for the

environment,‖ he told delegates at the TPM Asia conference in Shenzhen yesterday.

―The problem is the new fuel cost is between $250 and $350 per tonne more expensive than the fuel we

buy today.‖ APL parent carrier CMA CGM estimates the added cost from the sulphur fuel cap to be around

$160 per teu. ―What needs to be understood is that for container shipping this is a $15bn issue, so yes – it is

an existential crisis and we need to explain to our customers that they have to prepare,‖ added Mr Sartini.

―We will prepare and take action to improve efficiency, but at the end of the day we have to pass on the

cost to the customers.‖

However, speculation is mounting as to whether carriers will be able to successfully pass on all the extra

cost, having failed to do this during the first half of 2018 when their earnings were hit by a steady rise in

bunker prices. One action carriers may take, according to Mr Sartini, is more slow-steaming, potentially

resulting in tighter capacity, should carriers need to pull vessels from other trades.

―There was a reduction in speed a few years ago and, with what is ahead of us, we‘ll probably need to

review that again. We‘re not here to create a capacity crunch, but if you‘re forced to reduce the speed of

your vessels, then you maybe need more vessels by bringing them in from other services, which could be a

consequence of these measures we‘ll face in 2020.‖

Thomas Knudsen, global forwarding president at Toll Group, said he didn‘t think access to capacity would

be a major issue. ―I think it will be made available somehow. What I struggle with is what happened earlier

this year, with the [industry-wide] emergency bunker surcharges. I thought they were poorly introduced

and very difficult to understand.‖ As well as reducing fuel consumption, Mr Sartini said carriers would

challenge ports to be more efficient.

―I welcome the challenge to improve productivity,‖ replied Hutchison Port Holdings Trust chief executive

Gerry Yim. ―We talk about low-sulphur fuel and passing on the cost to customers, but what if the carriers

can‘t pass it on? They‘ll pass it on to me, so I‘ve got to help the whole industry deal with a lot of problems.‖

He said rather than looking to improve efficiency, he would look at where to cut inefficiencies, so

―everyone will benefit‖. Mr Yim made the point, however, that 70% of vessel calls at his terminals in

South China were made out of schedule and quipped: ―But we manage to help them to berth on arrival

within three hours and leave relatively on time, so they can miss the next schedule!‖

[The Loadstar]

11/10/2018

By Marcelo Teixeira

Brazilian coffee exporters shipped 2.73 million 60-kg bags of coffee abroad in September, 27 percent more

than a year earlier, but a lack of container space in ships prevented larger volumes as the country sells a

record crop.

Coffee exporters association Cecafé said on Wednesday that some exporters had to delay loading of coffee

at ports because they could not find cargo space in container ships. Cecafé said it had asked Brazil‘s

government for help to solve the problem. Cecafé estimates shipments could have been between 10 percent

and 15 percent larger last month if there had been more space in ships leaving the country.

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Container shipping: World Container Index - 11 Oct 2018

The bottleneck has been going on for a while in Brazil, Reuters reported recently. Exporters have

expressed worries over how to handle Brazil‘s largest ever coffee production of around 60 million bags.

―The exporter has been doing its part. He has prepared the cargoes, cleared documentation, leaving it ready

to load at ports. But sometimes the loading is rolled over to the next ship due to lack of room,‖ Cecafé

President Nelson Carvalhaes said in a statement. He said the association is in contact with Brazilian

government agency Antaq, which oversees maritime transportation, to find a solution.

Exports of arabica coffee made up most of the total in September, at 2.44 million bags, 14.9 percent more

than in the same month a year earlier. Robusta shipments reached 291,655 bags, more than a 1,000 percent

more than the year-earlier period, as Brazil recovers sharply from bad robusta production in 2016 and

2017.

[Reuters]

11/10/2018

The World Container Index assessed by Drewry, a composite of container freight rates on 8 major routes

to/from the US, Europe and Asia, is down by 2% to $1,635.87 per 40ft container.

Two-year spot freight rate trend for the World Container Index:

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Container shipping: Rising fuel costs set to push up container freight rates

Our detailed assessment for Thursday, 11 Oct 2018

The composite index is down by 2% this week, however, 27.6% up as compared with same period of 2017.

• The average composite index of the WCI, assessed by Drewry for year-to-date, is US $1,475/40ft

container, which is $40 lower than the five-year average of $1,515/40ft container.

• Drewry‘s composite World Container Index (WCI) is slightly down by 2% to $1,635.87 per 40ft

containers. Freight rates on Shanghai-Rotterdam marginally dropped by $9 to $1,424 for a 40ft container

and rates on Shanghai-Genoa decreased to $1,391 per feu – a change of $65. Similarly, rates from

Rotterdam to Shanghai plummeted by $155 for a 40ft box to $653. Additionally, rates on the Transpacific

routes showed a slight drop. Drewry expects rates to move up slightly next week.

Our latest freight rate assessments on eight major East-West trades:

Spot freight rates by route - assessed by Drewry

Source: Drewry Supply Chain Advisors

Drewry]

10/10/2018

By James Baker

Shippers should expect a freight rate increase of between 13% and 20% next year if carriers are to make up

for the increasing price of bunker fuel, according to analyst SeaIntel.

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Dry bulk shipping: Iran emerges as no. 1 buyer of U.S. soya beans

While the focus of bunker discussions has been on the introduction of the International Maritime

Organization‘s sulphur cap in 2020, SeaIntel points out that carriers have been paying increasingly steeper

prices for fuel already and that increase has not been reflected in higher freight rates. Fuel prices have

increased from an average of $159 per tonne in February 2016 to $474 per tonne last month, SeaIntel said.

―From the market nadir to August 2018 the oil price has therefore increased by 187% — almost a tripling,‖

it said. ―In the same period, global freight rates have increased a scant 6%, and even if we use the slightly

higher rates recorded in July 2018, the freight rate increase remains a modest 8%.‖

Using figures from Container Trades Statistics freight rate index, which uses 2008 as 100, SeaIntel pointed

out that with the last time fuel costs were this high, the global freight index, which in July stood at 68, was

at 82.

―This indicates that current freight rates should — theoretically — be up to 20% higher than what is

currently the case,‖ SeaIntel said. ―The word ‗theoretically‘ is used as the continuing phase-in of larger

vessels lowers the actual fuel consumption per teu, and hence will in itself serve as a dampener on freight

rate developments.‖

Before the worst period of the market downturn, oil prices fell by 76% between 2014 and the beginning of

2016. At the same time, rates fell 30%. Using Hapag-Lloyd‘s published costs for the first half of 2018,

SeaIntel found that fuel made up 14% of total costs. But in the first quarter of 2016 this figure was just

7.2%. ―Using this as a benchmark, a 187% increase in fuel costs should therefore only impact 7.2% of the

costs, and consequently lead to a 13.5% increase in freight rates,‖ SeaIntel said.

It was clear that the current freight rates were not reflective of the underlying increase in fuel costs, it

added. ―Shippers who are preparing budgets for 2019 should therefore take into account the likelihood of

freight rate increases of up to 13%-20% seen from a global average perspective, although the actual

increase may be slightly lower due to the dampening effect of the scale,‖ SeaIntel said.

[Lloyd‘s Loading List]

10/10/2018

By Peter Sand

Meanwhile the exports of soya beans to China from the US are down 31% for the first eight months and

95% in August alone, compared to the same periods of last year.

The US soya bean export season is on its way. October through to January is peak season for US exports of

this key agriculture commodity – which in 2018 attracts much more attention than previously. In terms of

seaborne tonnes of soya beans, 31.7 million tonnes were shipped from the US gulf and US North West

coast to buyers in China in 2017.

There were only four months between January 2016 through to July 2018, that the US exported no more

than one 82,000 DWT Panamax dry bulk cargo to Iran. In August 2018, 414,000 tonnes, the equivalent of

five Panamax loads of soya beans were shipped to Iran – this amounts to 13.2% of total US soya bean

exports in August.

BIMCO‘s Chief Shipping Analyst Peter Sand comments: ―BIMCO anticipated trade lanes to change due to

the ongoing trade war between China and the US. But it‘s fair to say that Iran‘s massive and sudden

appetite for US soya beans is very unexcepted and the reason is currently unknown.

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From a shipping perspective it‘s vital to have continued exports sent to far away destinations, deploying

the many ships in position right now to cater for the seaborne transportation demand.‖

Exports to China are down by 31% for the first eight months of 2018 and by 95% in August

alone

During the first eight months of 2018, the US has exported 7.84 million tonnes of soya beans to China. This

is down by 3.54 million tonnes from 11.38 million tonnes in the same period in 2017.

In August, only 67,000 tonnes of soya beans have been shipped from the US to China. This is a reduction

of 95% from the 1.2 million tonnes being shipped in August last year. BIMCO‘s Chief Shipping Analyst

Peter Sand comments: "The Chinese appetite for US soya beans has been muted all year, in absolute as

well as relative terms.

If this is the result of Chinese farmers changing the diet of their pigs from a much higher soya meal content

than the global average to a normalised and lower one, to reduce US imports, they may not need to find a

replacement producer. A full replacement that may also be very difficult to find.‖

During the first eight months of 2018, Brazil exported 50.9 million tonnes of soya beans to China. This is

an increase of 6.8 million tonnes (+15%) from 44.1 million tonnes exported during the first eight months of

2017. As the Brazilian soya bean export season is soon ending (Oct/Nov), it‘s fair to conclude that

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Port development Hong Kong: Government to focus on boosting maritime services because

port cannot compete with rivals

Brazilian exports have not filled the gap fully – as the US exported 31.7 million tonnes to China in 2017.

As many long-haul fixtures are lost on the way when Chinese imports of soya beans from the Atlantic

basin drops, the dry bulk shipping industry feels the pain.

US seaborne soya bean exports up by 9.7% in the off season

During the first eight month of 2017, 46% of total annual exports were shipped. Leaving the lion‘s share of

the trade to the final four months of the year. US exports in the first eight months of 2018 are up by 9.7%,

equal to 2.3 million tonnes, with the peak season about to kick in.

It has been Egypt and the Netherlands who have grown their imports the most so far. But also Pakistan,

Taiwan, Vietnam, Spain and Iran have increased imports of US soya beans. In total, they have contributed

to more than balancing out the 3.5 million decrease in Chinese imports in the first 8 months of 2018

compared to the same period in 2017.

―Going into the final four months of the year (peak US export season), a period that saw China taking 20.3

million tonnes out of the total 28.5 million tonnes last year, it will be increasingly difficult for US exporters

to counterbalance lower Chinese imports with new buyers‖, Peter Sand ends.

[BIMCO]

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Chinese investment in Europe is increasing

10/10/2018

Government eyes areas such as ship leasing and insurance, and will offer ongoing support to make city a

dispute resolution centre for global industry.

Acknowledging the decline in sea cargo passing through Hong Kong, Chief Executive Carrie Lam Cheng

Yuet-ngor sought to address the weakness by boosting the sector elsewhere. The government said it would

focus on ―high value-added maritime services‖ in areas such as ship leasing and insurance, and offer

ongoing support to the city as a dispute resolution centre for the global industry. It would also inject

HK$200 million (US$25.6 million) into the Maritime and Aviation Training Fund to boost talent in the

respective sectors.

―Facing the fierce competition among neighbouring ports and ports in the region, we must admit that

relying on our port container trade alone can no longer bring strong and sustained impetus for Hong Kong‘s

economic growth,‖ Lam said in her policy address on Wednesday.

―For this reason, we must capitalise on Hong Kong‘s unique strengths and the immense opportunities

brought by the ‗Belt and Road Initiative‘ and the ‗Greater Bay Area‘ development to develop high value-

added maritime services.‖ The rise of the Pearl River Delta cities of Guangzhou and Shenzhen plus the

focus on the region working closer together, including with Hong Kong, is forcing them all to work out

how to collaborate.

Hong Kong is the world‘s fifth-largest port in terms of total containers shipped, down from fourth in 2014.

It lags Singapore and three mainland Chinese ports: Shanghai, Shenzhen and Ningbo-Zhoushan.

Guangzhou is not far behind. Recent government data showed container traffic declined 3.7 per cent in the

first six months of 2018.

―We acknowledge the reality … we all know the situation with our ports and that we will need to have a

division of labour with the Greater Bay Area,‖ a government source said. ―That is why we want to focus on

maritime services.‖

To encourage ship leasing businesses to stay, or even return to Hong Kong, the government agreed with the

directions of a study conducted earlier this year to provide tax relief, though few details were offered.

Another study has been commissioned to devise details and will be completed around the middle of next

year. The hint of tax relief would boost the ship leasing trade, a stimulus industry stakeholders had called

for in May.

Meanwhile, marine insurers are expected to gain from a 50 per cent cut in profits tax, from 16.5 per cent to

8.25 per cent, with the legislative process for that starting in the next year.

To meet the needs of Hong Kong shipowners stationed overseas, the Marine Department has pledged to

station staff at six overseas Economic and Trade Offices to provide help starting in 2020. The offices are in

Shanghai, Singapore, San Francisco, Tokyo, Sydney and London.

[South China Morning Post]

10/10/2018

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The region accounted for a quarter of China‘s FDI outflows in 2017

China‘s presence in Europe, both politically and commercially, is growing. In 2016 Chinese investment in

the European Union jumped to nearly €36bn ($40bn), up from €20bn the previous year, according to

Rhodium Group, an American research firm. Much of this is state-backed and speaks of the Communist

Party‘s ambitions to keep Europe from helping America to contain China‘s rise. Until that boom year,

Europe‘s leaders—most notably in Germany—had largely welcomed Chinese investment without thinking

too hard about it. But the huge influx of money prompted leaders in Berlin, Brussels and elsewhere to

worry about the power and influence China was gaining in the process, especially in the EU‘s smaller

countries. They have since tightened the screening of Chinese investment and are trying to create a more

united European response. Still, those efforts are barely keeping up with the rate at which the cash is

flowing in. Inward investment dropped to €30bn last year, reflecting a global slowdown in China‘s foreign

direct investment (FDI). Yet Europe increased its share from a fifth to a quarter.

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Illegal export of e-waste from Canada: A story as told by GPS trackers

The investment is marked by regional trends. In

eastern Europe, the focus is on infrastructure that

can solidify links between the old continent and

Belt and Road Initiative projects farther east. In

southern Europe Chinese buyers participated in

the wave of privatisations during and after the

euro-zone crisis. But the largest sums of Chinese

cash have flowed into western Europe. In Britain

it accelerated after a push by George Osborne,

then chancellor of the exchequer, to make his

country China‘s ―best partner in the West‖.

The focus in Germany is on high-tech firms with

the specialised knowledge needed to make China

more industrially and technologically

self-sufficient. Even France, long sceptical of

foreign investment, has seen Chinese buyers

hoover up Bordeaux vineyards.

What does China want, ultimately? The supreme goal, of which its leadership never loses sight, is for

China to become an advanced, modern superpower that others dare not gainsay. Its idea of Europe is as a

wealthy, innovative region that could help it reach that goal.

[The Economist]

10/10/2018

The global waste watchdog group Basel Action Network (BAN) 1released its findings today of a year-long

study that involved placing GPS trackers hidden inside of 43 pieces of computing

1 Founded in 1997, the Basel Action Network is a 501(c)3 charitable organization of the United States,

based in Seattle, WA. BAN is the world's only organization focused on confronting the equipment and

then, mimicking the expected actions of Canadian consumers, handing them over to official collection

depots and processors across Canada. BAN then monitored the devices, tracking some of them offshore to

Asia.

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The BAN study, entitled Illegal Export of e-

Waste from Canada: A Story as Told by GPS

Trackers, found that 7 (16%) of the devices were

exported in what are likely to be illegal

shipments. Four of the devices were exported to

developing countries (Pakistan and Hong Kong)

in likely violation of the Basel Convention to

which Canada is a party. Three of the exported

devices were handled by one Canadian recycler,

the Electronics Recycling Association (ERA).

"The exports we found should have never happened," said Jim Puckett, BAN's founder, and Executive

Director. "This discovery could represent 116,000 metric tonnes per year if we extrapolate the results. It is

imperative therefore that the Canadian Government conduct a full investigation based on our findings and

begin to more credibly enforce the Basel Convention."

BAN followed the GPS signals to Hong Kong and Pakistan. In the infamous Hong Kong New Territories,

the trackers led the investigative team to areas where BAN had previously seen workers breaking the

equipment down without protection to prevent toxic mercury from LCD backlights or toxic toner dust from

being inhaled. This time the sites were not operational, and the few inside would not allow our team

through their gates, but by putting drones aloft and by looking through gaps in the fence line, large amounts

of e-waste was seen on site. In Pakistan our investigative team found a used computer market where

smashed cathode ray tube glass, LCDs including mercury lamps, and circuit boards were scattered in heaps

-- all evidencing crude and harmful dismantling releasing toxic materials, to harm human health and

environment.

global environmental justice and economic inefficiency of toxic trade and its devastating impacts. Today,

BAN serves as the information clearinghouse on the subject of waste trade for journalists, academics, and

the general public. Through its investigations, BAN uncovered the tragedy of hazardous electronic waste

dumping in developing countries. For more information, see www.BAN.org.

As a major step towards a solution, BAN urges adoption of the Basel Ban Amendment, which Canada has

long opposed. This agreement, put in place by an initiative of the developing and European countries,

forbids the export of hazardous waste for any reason from developed to developing countries. The Ban

Amendment lacks but two countries before it enters into legal force. Canada could be one of those

countries.

"We call on Canada to join the European Union in ratifying and implementing the Basel Ban Amendment,"

said Puckett. "By doing this, Canada can stop using Asia as a dumping ground and instead become

ambassadors of global environmental justice."

[Basel Action Network]

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10/10/2018

By Dennis L. Bryant, Bryant‘s Maritime Consulting

A shocking number of bulk carriers (as well as a few OBOs – ore/bulk/oil carriers) have been suddenly and

catastrophically lost at sea in the last 30 years.

Following are the names of some of those vessels, in chronological order of the casualties:

• Derbyshire (1980)

• Hui Long (2005)

• Asian Forest (2009)

• Black Rose (2009)

• Hong Wei (2010)

• Jian Fu Star (2010)

• Nasco Diamond (2010)

Several hundred sailors lost their lives in these casualties.

• Vinalines Queen (2011)

• Sun Spirits (2012)

• Trans Summer (2013)

• Harita Bauxite (2013)

• Bulk Jupiter (2015)

• Stella Daisy (2017)

• Emerald Star (2017)

The known or suspected cause of these tragic losses has been liquefaction of cargo. In all but one case, the

lost ship was carrying one of three cargoes: iron ore fines; nickel ore, or bauxite. Hui Long was carrying a

cargo of fluorspar mineral. These are all classified as solid bulk cargoes – granular materials loaded

directly into a ship‘s cargo holds. These cargoes actually consist of two phases because invariably there is

water present within the granular material. The water may have accumulated during mining and

processing, during storage (generally in piles on the ground exposed to the weather) while awaiting loading

on the ship; or during or immediately after loading if precipitation occurs. During the time that the ship is at

the pier or transiting through calm water, the cargo is quite stable.

In an open seaway and particularly during heavy weather, the cargo becomes subject to significant stresses.

Those stresses lead to an increase in the water pressure. When the water pressure exceeds the pressure of

the granular cargo, the mass can liquefy. This liquefaction can start in a small portion of the cargo and

rapidly spread, resulting in a sudden shifting of the entire mass. When this occurs on a modern bulk carrier

with huge cargo hulls, the ship is subject to severe listing. If not corrected quickly, the ship can capsize,

often so fast that a distress signal is not sent.

The International Maritime Organization (IMO), ship insurers, and trade associations (such as

INTERCARGO) have been working for a number of years to minimize the risks involved in the transport

of these solid bulk cargoes. The IMO issued circulars and resolutions and has amended the Safety of Life at

Sea (SOLAS) Convention to institute mandatory measures regarding such shipments.

The IMO initially adopted the Code of Safe Practice for Solid Bulk Cargoes (BC Code) in 1979 as

recommended guidance for ship owners and masters. In 2008, it was replaced by the mandatory

International Maritime Solid Bulk Cargoes Code (IMSBC Code). The aim of the IMSBC Code is to

facilitate the safe stowage and shipment of solid bulk cargoes by providing information on the dangers

associated with the shipment of certain types of cargo and instructions on the appropriate procedures to be

Liquefaction and lost bulk carriers: Is a design change warranted?

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Bunkering: Traders say U.S. to be big winner of new IMO shipping rules

adopted.

Bulk carriers continue to be lost at sea despite these efforts. One of the problems is that while the IMSBC

Code prohibits the master from loading bulk cargoes the Transportable Moisture Limit (TML) and

Moisture Content (MC) of which exceed certain limits, the certification of the TML and MC, as well as the

exact identification of the cargo are provided by the shipper. The master has minimal capability to

challenge those certifications. Some experts contend that the current IMO approach is too simplistic.

Liquefaction potential depends not just on how much moisture is in a bulk cargo, but also on other

characteristics, such as particle size distribution, the ratio of the volume of solid particles to water, and the

relative density of the cargo, as well as the method of loading and the motions of the ship during the

voyage. Some of these latter factors may be beyond the capability of the master to determine.

There is, though, another approach that can be taken to minimize the risk of catastrophic liquefaction of

solid bulk cargoes. A smaller cargo hold would mean that any liquefaction of the cargo in that hold would

have less impact on the stability of the ship. Rather than reduce the overall size of the vessel, a longitudinal

bulkhead could be installed to divide each current cargo hold, which now extends the breadth of the ship

from port to starboard, into two smaller holds. This may not be practical for existing bulk carriers, but

would not present a technological challenge for new construction. This would be the bulker equivalent of

the double hull that has proven so successful for tankers. While construction costs would be marginally

higher and the loading and discharge of cargo would be somewhat slower, compare that with the ships,

cargoes, and lives that would be saved.

[Maritime Reporter & Engineering News]

10/10/2018

By Julia Payne and Dmitry Zhdannikov

The United States is set to be the big winner from new marine fuel rules, trading house Gunvor Group

predicted on Wednesday, while rival merchants said the world would not face a shortage of distillates as a

result of new rules to cut pollution.

The UN's International Maritime Organisation (IMO) has set new rules that will ban ships from using fuels

with a sulphur content above 0.5 percent from 2020, compared with 3.5 percent now, unless they are

equipped with so-called scrubbers to clean up sulfur emissions.

The industry has been expecting a sharp rise in demand for cleaner distillates, mainly diesel, at the expense

of fuel oil that would become largely redundant. Gunvor Group Chief Executive Torbjorn Tornqvist said at

the Oil & Money conference in London that the switch would certainly create some chaos at first as storage

and logistics must deal with a "cocktail of fuel blends" and that the United States would be the major

overall winner.

"Crude differentials will reflect the strong differentials between distillates (diesel) and fuel oil we will see

the price of heavy crude fall and light sweet rise," Tornqvist said.

Heavy sour crudes yield much more fuel oil than light, sweet oil that have a maximum sulfur content of 0.5

percent, unless a refinery has advanced equipment. "The big winner in the IMO is actually the United

States. They have the most advanced refining system in the world and will take advantage of importing

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Marine pollution: Vessel waste a growing challenge in the northern Bering Sea and Bering

Strait

more heavy crude oil and they will export light crude oil that will get a bigger premium," he said.

Vitol Chairman Ian Taylor said he did not expect a major glut of high sulfur fuel oil as refiners were adding

units. "So many units have been prepared to reduce it and there's so little high sulfur fuel left already,"

Taylor said.

Glencore's head of oil Alex Beard echoed the remarks as scrubbers, add-on units to ship to clean out

pollutants, would still allow ships to mop up some fuel oil. "Distillates will clearly play a very large role in

shipping but what is becoming clear is that the world can cope, so it won't be the crisis that people were

thinking a year or two ago," he said. "Our estimate is that by January 2020, something like 25 percent of the

world's high sulfur fuel demand today will be from ships that have scrubbers and that will grow through

2020."

[Reuters]

10/10/2018

How garbage, sewage, and other pollutants are generated and regulated— and what can be done better.

Source: The Pew Charitable Trust: Vessel Waste a Growing Challenge in the Northern Bering Sea and

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Marine pollution EU: New rules on ship waste disposal could add to owners’ costs

Bering Strait [Oct 2018]

35

Port & Shipping News 41/18 (08 – 14 Oct 2018)

Uwe Breitling - Port, Transport & Training Consultant

[email protected]

The northern Bering Sea and Bering Strait region has been an ecological, cultural, and economic center for

Yup‘ik,Cup‘ik, St. Lawrence Island Yupik, and Inupiaq peoples for millennia. It provides food and spiritual

and economic well-being for Indigenous people today. These waters also facilitate vital tug and barge

deliveries to areas that are not connected by roads or frequented by airplanes. But in recent years, a

confluence of factors, including less sea ice and more trade and resource development, has spurred a rapid

increase in vessel traffic in the region, led by large cargo ships, tugs, and research vessels, and is forecast to

continue to grow.

Many of these vessels provide important services for people, science, and commerce in the region, but they

also present serious and growing challenges, including the production of large quantities of waste. Ocean

vessels can generate up to 40 different types of waste while at sea, such as air emissions, garbage, sewage,

machinery lubricant, ballast water, and deck runoff. Without effective management, this vessel waste can

have significant negative impacts on people and the marine environment.

Unfortunately, existing rules governing the production and handling of waste are complex and often differ

depending on a vessel‘s type, size, place of origin, destination, and distance from shore. To reduce ocean

pollution, key regulations should be strengthened and combined with better monitoring and enforcement.

A new brief of The Pew Charitable Trust, Vessel Waste a Growing Challenge in the Northern Bering Sea and

Bering Strait, examines four major sources of vessel waste that can be discharged into the sea: garbage,

sewage, grey water, and oily water mixes. It assesses their potential effects on the northern Bering Sea‘s

sensitive marine environment; reviews how they are regulated across three jurisdictional authorities:

international, the United States federal government, and Alaska; and provides recommendations to improve

regulation, monitoring, and enforcement.

[The Pew Charitable Trust]

10/10/2018

By Malcolm Latarche

Less than a week after outgoing Intercargo chairman John Platsidakis criticised port reception facilities, the

European Parliament has adopted a report which could result in increased costs for owners that store garbage

for disposal at a single convenient port instead of disposing of small quantities at every port.

According to a release from the European Sea Ports Organisation (ESPO), The Transport Committee of the

European Parliament has adopted Meissner report on the Port Reception Facilities and plans to commence

negotiations with the Council to finalise the text of the new law.

ESPO said it particularly welcomes the proposal to strengthen the ‗polluter pays‘ principle by discouraging

the delivery of unreasonable quantities of garbage, including dangerous waste, for a fixed fee. This proposal

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Marine pollution EU: Ship waste legislation clears major hurdle

will better protect marine environment by increasing the quantities of waste delivered at ports. It aims to

make sure that ships deliver their garbage at every port call and do not skip waste deliveries to save time. It

finally avoids that ports have to pay the extra costs of delivering amounts of garbage that exceed the normal

quantities generated between two ship calls.

―The Transport Committee of the European Parliament has clearly voted in favour of a policy that

incentivises ships to deliver waste generated on board in the ports. It also encourages ships to limit the waste

at the source by preventing ships to deliver unreasonable amounts of waste without paying for it. We believe

that the text adopted strikes the right balance between efficiency and responsibility and strengthens the

‗polluter pays‘ principle. We are very thankful to the Transport Committee for their very balanced position in

what has been from the beginning a technical and complicated piece of legislation. We count on the

rapporteur and the negotiating team of the Parliament to defend this outcome in the further negotiations with

the Council,‖ said Isabelle Ryckbost, ESPO‘s Secretary General, on the outcome of the EP vote.

The Meissner report did have some comfort for shipowners by suggesting that rebates for green management

of waste by ships should be encouraged by mandatory rebates. However, ESPO regrets that the Parliament

decided to make rebates mandatory for green management of waste on board of ships. While encouraging

ships to work on sustainable waste management, ports believe the decision to give rebates must be taken at

port level. Rebates are generally applied to address the local environmental challenges. In some areas, waste

pollution is a great environmental concern while in others it is air quality and emissions. Furthermore,

mandatory rebates disregard the existence of different business and governance models in ports across

Europe.

[ShipInsight]

10/10/2018

The European Parliament‘s Committee on Transport and Tourism (TRAN) adopted several critical

amendments to a European Commission proposal to address pollution from ships in European waters.

Negotiations with the Council of the European Union are now set to begin in early November.

The proposed revised Directive on port reception facilities for the delivery of waste from ships, released

concurrently with the European Strategy on Plastics in a Circular Economy last

January to tackle sea-based sources of marine plastic pollution, sets out to prevent the illegal dumping of

garbage and fishing gear at sea.

The flagship measure is referred to as the ‗100 per cent indirect fee‘, which restructures port fees to allow

ships to deliver all refuse to port for a fixed fee, regardless of quantities. This would remove incentives to

illegally dump the garbage at sea in order to reduce costs.

However, MEPs voted divisively on this, with some amendments strengthening the fee system and others

weakening it (e.g. amendments which limit the amounts of waste that can be brought to port).

Marc-Philip Buckhout, Policy Officer for Seas At Risk, said: ―About 30 per cent of plastics in our seas comes

from ships. Today, MEPs have shown a strong resolution to end the dumping of waste at sea, but they should

have taken a much stronger stance on the 100 per cent indirect fee‖.

The Commission proposal also allows fishermen to deliver waste caught in nets during fishing operations,

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Marine pollution EU: Parliament strengthens ‘polluter pays’ principle for ship waste

management

referred to as ―passively fished waste,‖ to ports at no additional cost to discourage them from throwing it

overboard.

TRAN agreed today to significantly strengthen the proposal in many ways, including:

• Prohibit dumping of plastic at sea. TRAN proposes to prohibit the dumping of plastic at sea under EU law

(subject to certain exceptions, such as to ensure crew safety);

• Fishing-for-litter initiatives and beach clean-Ups. TRAN would require Member States to establish a

national fund to support the delivery of passively fished waste to ports, referred to as fishing-for-litter

initiatives, and collect waste on coastlines and along shipping lanes;

• Accidental losses of fishing gear. TRAN would require fishermen to take all reasonable precautions to

prevent accidental losses of fishing gear, a major contributor to marine plastic pollution that also kills

wildlife through ―ghost fishing,‖ with the specific precautions to be developed by the Commission;

• Extended Producer Responsibility for fishing gear. TRAN would require Member States to establish

extended producer responsibility schemes for fishing gear, including modulated fees that promote circular

design and deposit-refund schemes;

• Inspections and enforcement. TRAN would strengthen inspections and enforcement on smaller vessels,

including many fishing vessels and recreational craft;

• Paraffin pollution. TRAN sets out a series of measures to combat paraffin pollution, noxious remnants of

cargo residues that have been washing up on EU coastlines in the North Sea.

―With today‘s vote, the European Parliament declared war on reckless marine plastic pollution coming from

ships and fishing vessels, which has been a long time coming,‖ said Tim Grabiel, Senior Lawyer at the

Environmental Investigation Agency (EIA). ―Here‘s hoping the Council is willing to fight the good fight

alongside the European Parliament and strengthen the proposal further in negotiations.‖

[Seas At Risk]

09/10/2018

The Transport Committee of the European Parliament adopted today the Meissner report on the Port

Reception Facilities and gave a mandate to the Rapporteur to start negotiations with the Council to finalise

the text of the new law.

The European Sea Ports Organisation (ESPO) welcomes in particular the proposal to strengthen the ‗polluter

pays‘ principle by discouraging the delivery of unreasonable quantities of garbage, including dangerous

waste, for a fixed fee. This proposal will better protect marine environment by increasing the quantities of

waste delivered at ports. It aims to make sure that ships deliver their garbage at every port call and don‘t skip

waste deliveries to save time. It finally avoids that ports have to pay the extra costs of delivering amounts of

garbage that exceed the normal quantities generated between two ship calls.

―The Transport Committee of the European Parliament has clearly voted in favour of a policy that

incentivises ships to deliver waste generated on board in the ports. It also encourages ships to limit the waste

at the source by preventing ships to deliver unreasonable amounts of waste without paying for it. We believe

that the text adopted strikes the right balance between efficiency and responsibility and strengthens the

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Marine pollution: Coca-Cola, PepsiCo, and Nestlé found to be worst plastic polluters

worldwide

‗polluter pays‘ principle. We are very thankful to the Transport Committee for their very balanced position in

what has been from the beginning a technical and complicated piece of legislation. We count on the

rapporteur and the negotiating team of the Parliament to defend this outcome in the further negotiations with

the Council,‖ says Isabelle Ryckbost, ESPO‘s Secretary General, on the outcome of the EP vote.

However, ESPO regrets that the Parliament decided to make rebates mandatory for green management of

waste on board of ships. While encouraging ships to work on sustainable waste management, ports believe

the decision to give rebates must be taken at port level. Rebates are generally applied to address the local

environmental challenges. In some areas, waste pollution is a great environmental concern while in others it

is air quality and emissions. Furthermore, mandatory rebates disregard the existence of different business and

governance models in ports across Europe.

[ESPO]

09/10/2018

By Jed Alegado

Coca-Cola, PepsiCo, and Nestlé were the most frequent companies identified in 239 cleanups and brand

audits spanning 42 countries and six continents, the Break Free From Plastic movement announced today.

The Break Free From Plastic‘s Brand Audit Report lists over 187,000 pieces of plastic trash that were

audited, identifying thousands of brands whose packaging relies on the single-use plastics that pollute our

oceans and waterways globally. Coca-Cola was the top polluter in the global audit, with Coke-branded

plastic pollution found in 40 of the 42 participating countries. This brand audit effort is the most

comprehensive snapshot of the worst plastic polluting companies around the world.

Credit: Justin Hofman / Greenpeace

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―These brand audits offer undeniable proof of the role that corporations play in perpetuating the global

plastic pollution crisis,‖ said Global Coordinator of Break Free From Plastic Von Hernandez. ―By continuing

to churn out problematic and unrecyclable throwaway plastic packaging for their products, these companies

are guilty of trashing the planet on a massive scale. It‘s time they own up and stop shifting the blame to

citizens for their wasteful and polluting products.‖

The audits, led by Break Free From Plastic member organizations, found that the following corporations

were the most frequent multinational brands in order from most to least commonly found in global brand

audits:

1. Coca-Cola

2. PepsiCo

3. Nestlé

4. Danone

5. Mondelez International

6. Procter & Gamble

7. Unilever

8. Perfetti van Melle

9. Mars Incorporated

10. Colgate-Palmolive

And that‘s just the top ten out of hundreds of multinational brands contributing to plastic pollution across the

globe.

This ranking of multinational companies included only brands that were found in at least ten of the 42

participating countries. Overall, polystyrene, which is not recyclable in most locations, was the most

common type of plastic found, followed closely by PET, a material used in bottles, containers, and other

packaging.

The top polluters in Asia, according to the analysis, were Coca-Cola, Perfetti van Melle, and Mondelez

International brands. These brands accounted for 30 percent of all branded plastic pollution counted by

volunteers across Asia. This year‘s brand audits throughout Asia build upon a week-long cleanup and audit at

the Philippines‘ Freedom Island in 2017, which found Nestlé and Unilever to be the top polluters.

―We pay the price for multinational companies‘ reliance on cheap throwaway plastic,‖ said Greenpeace

Southeast Asia – Philippines Campaigner Abigail Aguilar. ―We are the ones forced to clean up their plastic

pollution in our streets and waterways. In the Philippines, we can clean entire beaches and the next day they

are just as polluted with plastics. Through brand audits, we can name some of the worst polluters and demand

that they stop producing plastic to begin with.‖

In North and South America, Coca-Cola, PepsiCo, and Nestlé brands were the top polluters identified,

accounting for 64 and 70 percent of all the branded plastic pollution, respectively.

―In Latin America, brand audits put responsibility on the companies that produce useless plastics and the

governments that allow corporations to place the burden, from extraction to disposal, in mostly vulnerable

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and poor communities,‖ said GAIA Coordinator for Latin America Magdalena Donoso. ―BFFP members in

Latin America are exposing this crisis and promoting zero waste strategies in connection with our

communities.‖

Credit: Photographer's Choice

In Europe, Coca-Cola, PepsiCo, and Nestlé brands were again the top identified polluters, accounting for 45

percent of the plastic pollution found in the audits there. In Australia, 7-Eleven, Coca-Cola, and McDonald‘s

brands were the top polluters identified, accounting for 82 percent of the plastic pollution found. And finally,

in Africa, ASAS Group, Coca-Cola, and Procter & Gamble brands were the top brands collected, accounting

for 74 percent of the plastic pollution there.

―These brand audits are putting responsibility back where it belongs, with the corporations producing endless

amounts of plastics that end up in the Indian Ocean,‖ said Griffins Ochieng, Programmes Coordinator for the

Centre for Environment Justice and Development in Kenya. ―We held cleanups and brand audits in two

locations in Kenya to identify the worst corporate polluters in the region and hold them accountable. It is

more urgent than ever, for the sake of communities that rely on the ocean for their livelihoods, health and

well-being, to break free from plastic.

Break Free From Plastic is calling on corporations reduce their use of single-use plastic, redesign delivery

systems to minimize or eliminate packaging, and take responsibility for the plastic pollution they are

pumping into already strained waste management systems and the environment.

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High-tech transport is already here, and it’s called rail

Plastic pollution isn't just a problem in the oceans as this stark image from Bangladesh shows Credit: Daily

Mirror

While the brand audits do not provide a complete picture of companies‘ plastic pollution footprints, they are

the best indication to date of the worst plastic polluters globally. The Break Free From Plastic movement is

urging companies to end their reliance on single-use plastics, prioritizing innovation and alternative delivery

systems for products.

[Greenpeace]

09/10/2018

By Christopher Jasper

The airline and automotive industries are abuzz with talk of driver-less travel and electric propulsion, so

much so that they might seem to be the pacesetters in transport technology. Yet train manufacturers around

the world are introducing innovations that may be years away for cars and planes. Rail chiefs met recently at

the biennial Innotrans trade fair in Berlin to showcase a future that‘s already happening. Here are some of the

highlights

Driverless cab

Google‘s Waymo self-driving-car technology won‘t hit the highway until next year, and pilot-less passenger

jets are still years away. Yet autonomous trains have already been introduced across dozens of subway and

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tram systems where there‘s no risk of a clash with other services,

among them London‘s Docklands Light Railway, the Paris Metro and the SkyTrain and Plane Train people

movers at Atlanta Hartsfield-Jackson, the world‘s busiest airport.

And the industry isn‘t stopping there. Rio Tinto Group in July used technology from Italy‘s Ansaldo STS to

send a 28,000-metric ton iron ore train through the Australian outback while ―driven‖ from Perth, 1,500

miles away. By the end of the year it plans to have 200 locomotives running without drivers.

French state railway SNCF last month committed to introducing its own fully autonomous cargo trains by

2021, followed by unmanned passenger services across the center of Paris by 2023.

Power play

While the Tesla Inc. S and Nissan Motor Co. Leaf are making inroads, electric cars still account for only a

few percent of sales even in their biggest markets. By contrast many rail networks were electrified decades

ago, with the push to cut emissions focused on remaining routes. Some electric locomotives feature small

diesel engines to allow them to reach freight terminals a short distance from the main line, but manufacturers

are increasingly looking at fitting batteries for so-called last-mile operations.

More ambitious is Bombardier Inc.‘s Talent 3 battery model, part-funded by the German government, which

charges up under wires and is capable of running on battery power alone for 40 kilometers (25 miles). That‘s

set to be extended to 100 km, though beyond that range weight is an issue; batteries for the existing train

already weigh 2 metric tons. The model will compete with Alstom SA‘s hydrogen fuel cell-powered Coradia

iLint, launched at Innotrans two years ago. The Talent has the advantage of using off-the-shelf technology,

though the Coradia may see costs fall faster once fuel cells become fully commercialized.

In the diesel-dominated cargo market, leaner engines are coming to the fore. General Electric Co., known for

locomotives that haul some of the world‘s heaviest freight trains, used Innotrans to unveil a smaller, faster-

running engine aimed at pitching the U.S. company into a niche it has previously avoided. GE is also fitting

batteries to some of its locos for use when minimal power is needed or when crossing territories with tough

emissions limits.

Smart trains

Predictive maintenance is prevalent in the aviation industry, where jet engines send live updates on their

condition. The technology is becoming a broader feature of the rail industry, too, from scanners that identify

areas of worn track and communicate the position to grinding machines to air-conditioners that monitor

changing carbon dioxide levels to calculate the number of people in each carriage.

GE locomotives transmit data across 200 parameters, mainly relating to engine performance, allowing

engineers to determine what needs fixing at the next shop visit and to arrange for parts to be delivered in

advance.

Tapping ―big data‖ could ultimately deliver an air traffic control-style system for the rail industry, the U.S.

company says. In the freight sector that would mean managing a shipment from the moment it arrived at a

port, building a consist of different cargoes, determining the best locomotives to deploy and the optimum

route, and taking charge of the journey itself, as well as notifying relevant parties such as customs authorities

and the end customer

Easing the commute

Better known for its Shinkansen bullet trains, Hitachi Ltd.‘d new Caravaggio commuter model will serve

cities such as Bologna and Milan and seek to add more commuters while boosting travel speeds. The train

features a double-deck layout combined with a light alloy construction and roof-mounted traction equipment

to create more internal space. The result is a six-car train that seats 750 people and can accelerate as fast as a

subway train.

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Casualties: Asphalt tanker suffers engine room fire off Nantucket

Training & education: Philippines officials seek to reassure on EMSA audit compliance, but

have they done enough?

Hyped-up loop

The industry remains unconvinced by disruptive technologies such as magnetic levitation. SNCF is an

investor in Hyperloop One, the most prominent such project, but says it‘s more interested in the venture‘s

approach to innovation and collaboration than any immediate application on the French rail network. The

system, based on a concept first advanced by Elon Musk and now backed by Richard Branson, would speed

people and cargo through a system of tubes at 700 mph. That might work well enough on a prototype basis,

but there‘s no evidence yet that it could practically transport an ocean-going container from Le Havre to Paris

every 20 seconds, SNCF reckons

Getting faster

While rail‘s focus is increasingly on emissions and efficiency, boosting top speeds remains a major theme.

For the moment conventional trains reign supreme, with Siemens AG presenting its Velaro Novo concept for

a next-generation high speed train capable of 360 kilometers per hour (224 mph), compared with the current

norm of about 300 kmph, with service entry set for 2023.

[Bloomberg]

09/10/2018

The Hong Kong-flagged tanker 'Feng Huang AO', with 21 crew aboard, suffered a fire ignite in its engine

room while transiting 57 miles southeast of Nantucket Island, in the Atlantic Ocean, on 5 October early

morning, the US Coast Guard informed.

The US Coast Guard and Fire Department of the City of New York (FDNY) Special Operations Command

firefighters and Rescue Paramedics conducted a joint safety examination of the disabled 479-foot asphalt

tanker on Monday afternoon. The ship is loaded with asphalt and was bound for New York Harbor.

The fire was extinguished using the ship‘s installed carbon dioxide fire suppression system. There were no

reported injuries to any crew members, and no reports of pollution. The ship‘s electrical generators and main

engine were disabled by the fire.

Salvage tugs were dispatched to rendezvous with the ship and take it under tow. Towing operations towards

New York began early Sunday morning with USCG Sector New York personnel closely monitoring the

vessel‘s transit through offshore shipping lanes. Inspection crews from Sector New York and FDNY boarded

the vessel Monday afternoon to assess damage and ensure the ship‘s safety prior to allowing entry into New

York Harbor. The Feng Huang AO will remain in port until repairs are completed. The cause of the incident

is under investigation.

[SAFETY4SEA]

09/10/2018

By Marcus Hand

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Belt and Road Initiative: Connectivity of six overland corridors of integration

Over the last couple of weeks Philippines government officials have been seeking to reassure the country that

it will pass the European Maritime Safety Agency (EMSA) latest audit on its maritime training.

Failure to demonstrate compliance with standards of certification for the STCW Convention could result in

Filipino officers being barred from serving on some 10,000 EU-registered vessels. A full audit by EMSA last

March found some 59 aspects in which the Philippines failed. There are reported to be 100,000 seafarers

serving on EU vessels.

The Philppines submitted a correction plan to EMSA in September 2017 but this lacked support evidence and

was sent back and was then given until April this year to submit a correction plan with supporting evidence

and until October to fully implement it.

With the October deadline now upon the country and Philippines Transportation Secretary Arthur P. Tugade

is reported as saying that it is now fullly compliant. ―We will show the world that we are compliant [with]

international standards and that we continue to value and produce competent, disciplined and well-trained

Filipino seafarers who carry with them the brand of excellence and hard work that Filipinos are known for

everywhere,‖ he was quoted as saying in the local press.

Maritime Industrial Authority (Marina) administrator Leonardo B. Guerrero, who is in charge of the process,

said, ―We have already submitted our initial report. We intend to submit our compliance status this month,

and by the end of October, we expect that somebody from Emsa will be contacting us for us to demonstrate

the proof of evidence for compliance.‖

Included were an extensive review and revision of seven existing national provisions and the development of

six training course packages, all of which, Guerrero said, ―are ready for implementation.‖

Despite these reassurances it does not necessarily look that positive for the Philippines with elements only

now being put into place despite multiple failed EMSA audits in process that has now dragged on for 12

years.

Last chance saloon as Philippines awaits EMSA audit results

While the Philippines does have many high-quality seafarer training institutions there remains a substantial

part of its seafarer training industry that seems more concerned in making money from the process than

producing trained men and women who will ever actually go to sea. Marina's data shows that only 20% -

5,000 out of 25,000 - who graduate from the country's maritime schools actually find jobs at sea.

Even after all this time it would appear measures are only ―ready for implementation‖ rather than being a

corrective that is fully implemented. An online system that will allow for the verification of seafarer

documents will only be ready next year.

It is not hard to see why some EU members are saying that enough is enough and if the Philippines does fail

the audit again real sanctions should be put in place.

Has the Philippines done enough? Only time will tell and many seafarers and managers will be watching

nervously in the coming months.

[Seatrade Maritime News]

09/10/2018

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By Charles Kunaka

The six land corridors that are the ―Belt‖ part of the Belt and Road Initiative (BRI) connect more than sixty

countries, a number that keeps growing as more and more countries join. However, even as the initiative

progresses, there are still open questions as to what each participating country will gain from the initiative.

How can a country best benefit from the BRI? How should projects be prioritized and sequenced? What

opportunities emerge as a result of participating? A new World Bank research paper explores these recurring

questions.

Our analysis is based on exploring the position of each country‘s economic centers along the BRI network of

corridors. Ultimately, an initiative such as the BRI will change the way economic centers are connected.

Productivity, competition, market opportunities, and transport and logistics costs could all be impacted.

Participating countries and cities within them will all certainly be affected by the implementation of the BRI.

However, the extent of the impact will depend on where along the corridors a country or city is located

relative to other economic centers. The difference matters, and is comparable to a storefront being located in

a cul-de-sac or a thoroughfare. Countries and cities on the ―thoroughfare‖ may see more opportunities to add

value and intermediate trade, whereas countries in the ―cul-de-sac‖ serve as an end node only.

Connectivity in BRI economies

Credit: The World Bank

In our research, we have identified four ways that geography and connectivity could impact BRI countries.

• The BRI corridors primarily enhance the connectivity between China and existing economic

communities. Over the past three decades the world economy has evolved into distinct economic

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Belt & Road Initiative: China's investment surged 30% to $20.1 billion in 2017

communities – of which the European Union and

ASEAN are the most prominent examples. To a large extent, China is not party to some of these important

―walled gardens.‖ Through our analysis, we identify five communities that the BRI corridors will bridge

between: a ‗Chinese community‘ and a ‗Southeast Asian community‘ centered on Bangkok and Singapore; a

‗Central and West Asian community‘; a ‗South Asian‘ community; or a ‗North Asian‘ community. As

intra-regional connectivity in each of the regions is already high, the BRI corridors essentially are bridges

between China and these other communities.

• The development of BRI corridors should prioritize existing gaps or weak links in infrastructure

networks. BRI investment should be prioritized in areas where road, rail, and information networks are

the weakest. These investments should be coupled with the negotiation of new trade and other

agreements, and the improvement of the regulatory and policy frameworks for the provision of services.

In the paper we identify some of the links that could be prioritized for development, especially along the

China – Central Asia – West Asia Economic Corridor and the Bangladesh, China, India and Myanmar

Economic Corridor.

• Developing the BRI corridors should be accompanied with new cooperation agreements. Borders, and

countries‘ abilities to cooperate across them, impact connectivity. The thickness of borders can be

reduced by negotiating new agreements among the countries along a particular corridor. Negotiating new

trade agreements is an indispensable part of BRI, in some instances much more important than building

new physical infrastructure.

• Different cities and towns should plan to leverage their positions to maximize the benefits of BRI. In

China, we identify seven cities (Baotou, Zhengzhou, Xian, Lanzhou, Urumqi, Kunming and Qujing) that

will become more central and important within the BRI networks and be critical to how China engages

with the BRI countries. In addition, we identify cities in other participating countries and along each

corridor that are also well placed to benefit significantly from improvements to the trade routes. The

centers are Novosibirsk, Irkutsk Yekaterinburg, and Krasnodar (Russia), Almaty, and Astana

(Kazakhstan), Tehran (Iran), Istanbul (Turkey), Kabul (Afghanistan), Yangon (Myanmar), Kuala

Lumpur (Malaysia), Bangkok (Thailand), Hanoi (Vietnam), Singapore (Singapore), Rawalpindi,

Bahawalpur, Islamabad and Karachi (Pakistan), Dhaka (Bangladesh), and Kolkata (India). These centers

are well placed to generate, add value to or play roles as fulcrum for BRI corridor flows. The corollary is

that all other centers have to take special measures to enhance their roles in the emerging corridors and to

benefit from them. The centers cannot be complacent as otherwise they will not see much impact from

BRI.

Many low-income countries are attracted to BRI projects by the potential for new investments in physical

infrastructure. However, it is also important that they also do more to improve trade and other policies if they

are to maximize the beneficial impacts of the initiative.The scope and scale of the measures that each country

should pursue will depend on its position along a specific corridor and in the emerging global connectivity

networks. What seems clear is that countries will need to take deliberate actions to realize the promise of

BRI.

[The World Bank]

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09/10/2018

By Issaku Harada, Nikkei staff writer

Chinese capital flowing into Belt and Road Initiative projects surged 30% on the year to a record $20.1 billion

in 2017, even as the country's overall outbound foreign direct investment fell for the first time, dropping 19%.

Data from the commerce ministry shows BRI investment in 64 countries in 2017 surpassed a previous high of

$18.9 billion in 2015. And that record looks set to be beaten again this year -- Chinese investment in Belt and

Road countries, excluding in the financial sector, already jumped 12% on the year to $9.5 billion in the first

eight months of 2018. Overall FDI in 2017 fell to $158.2 billion. BRI outward investment made up 12.7% of the

total in 2017, up 4.9 percentage points from 2016.

Investment in the U.S. in 2017 dropped to a third of the previous year's level, due to tighter scrutiny of Chinese

takeovers by regulators in Western jurisdictions. Beijing has also restricted overseas investment in property and

the entertainment sector by Chinese companies in an effort to curb capital outflows.

China's splurge on eight BRI countries, including Pakistan and Laos, surged 43% on the year to $2.2 billion in

2017. A U.S. think tank has pointed out that this indicates excessive borrowing by these countries, which have

taken in total Chinese investment to the tune of nearly $20 billion.

China has mostly invested in infrastructure, such as ports and roads, and may be accelerating the investments to

make up for a rapid decline in such activity in the U.S.

While some small countries welcome the BRI as a way to cover swelling infrastructure costs, China has been

criticized for plunging them into debt that they would find hard to climb out of without yielding control to

Beijing. Most of its investments in these countries are in the form of high-interest aid loans. Sri Lanka serves as

an example. It was forced to lease its Hambantota port to China as payment for debts borrowed to build it.

But a source at a state-owned Chinese construction company involved in BRI said that China does have a

ceiling on the debt. "There is the Chinese government's guidance restricting Chinese funds to 85% or less of the

total ... But small countries cannot contribute even the 15% portion of the total funds," said the source.

"Eventually, the Chinese side has no choice but to contribute all the funds."

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And the congestion crisis at UK ports is having a knock-on effect at other North European ports, and beyond.

Giuseppe Lamberti, a manager at Salerno Container Terminal, said: ―It‘s incredible the impact of this on North

European shipping trades; carriers, consignors and even terminals have been affected by the Felixstowe failure.

I never thought that my firm‘s container throughput might be affected by the capability of another terminal to

implement in good order a new TOS [terminal operating system].‖

The IT failure at Felixstowe, which began in June, has resulted in a number of ship diversions and in some cases

the temporary transfer of services to other ports. Arguably, the problems at Southampton can be traced back to

the issues at Felixstowe, however it has also highlighted the additional difficulty container ports have in

handling off-window ULCVs.

In a new discussion paper released by the International Transport Forum (ITF), entitled Container Ship Size and

Port Relocation 2, the author, the OECD‘s Olaf Merk, suggests the influence of the orderbook rush for mega-

ships (defined as over 18,000 teu) has yet to be fully realised. ―The impacts of the newest wave of container

vessels only start to become visible, as many of these mega-ships have not been delivered yet,‖ said Mr Merk.

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Terminal operators China: 7 of the top 10 container ports are Chinese

Source: Nikkei

The Center for Global Development, a U.S. think tank, released a report in March naming eight countries that

could fall into China's debt trap -- Kyrgyzstan, the Maldives, Laos, Djibouti, Mongolia, Montenegro, Tajikistan

and Pakistan. Investment in Laos nearly quadrupled, while that in Djibouti also soared 70% in 2017.

Total Chinese investment in the eight countries at the end of 2017 reached $19.2 billion, up 15% from a year

earlier. The investment as a percentage of the eight countries' combined gross domestic product is 5%. But that

is skewed by much higher ratios for some countries. As a percentage of GDP, Chinese investment in Laos is

39%, in Mongolia 32% and in Tajikistan 22%.

[Nikkei Asian Review]

O9/10/2018

The United Nations Conference on Trade and Development (UNCTAD) recently announced the top 10 ports

by container volume in a report on global shipping in 2017.

The Chinese ports include Shanghai (number 1), Shenzhen (number 3), and 5 more, all in the top 10.

Singapore (number 2) and Busan (number 5) were high on the list as well, making it clear that Asian ports are

the "core" of global shipping.

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Leading 20 global container ports, 2017 [in ‘000 TEU]

Source: UNCTAD Review of Maritime Transport 2018 [Oct 2018]

The overall volume of containers processed in 2017 increased by 4% in comparison with 2016 and reached

10.7 billion tons. The overall volume dropped to 7.9 billion tons in 2009 as a result of the financial crisis, but

smoothly increased again afterwards. The 4% growth is estimated to continue in 2018, but the "Sino-

American trade war" constitutes an unpredictable element.

The overall volume of processed containers amounts to 752 million standard 20 feet containers, which is an

increase of 6% in comparison with the previous year. The volume of containers processed in Asia accounts

for 64% of the total volume worldwide. Europe comes second with 16% and North America comes third with

8%.

Shanghai processed 40.23 million standard containers, while Singapore processed 33.67 million standard

containers. There are 15 ports worldwide with a volume of processed containers that exceeds 10 million

standard containers. Japanese ports have not made in the top 20 yet. Domestic data shows that Tokyo Port

processed 5.05 million standard containers, while Yokohama processed 2.93 million standard containers, and

Kobe processed 2.92 million standard containers.

The UNCTAD Review of Maritime Transport 2018 also stated that "competition in global shipping is fierce

as the industry develops at a high pace and the scale of shipping increases daily. Ports are forced to anticipate

these developments."

[Fresh Plaza]

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09/10/2018

By Joanna Kakissis

In the past decade, Chinese port and terminal operators COSCO Shipping Ports and China Merchants Port

Holdings have acquired stakes in 16 ports spread over Europe and the Mediterranean.

Chinese companies are investing in ports around the world. The map below shows ports in Europe and the

Mediterranean in which the Chinese state-owned enterprises COSCO Shipping Ports and China Merchants

Port Holdings (CMPort) have acquired stakes. Locations correspond to port cities.

China’s port investing spree in Europe and the Mediterranean

Source: Olaf Merk: Geopolitics and Commercial Seaports [2017], China Merchants Port Holdings and

COSCO Shipping Ports

It is part of China's 21st Century Maritime Silk Road, which aims to better connect the country to commercial

hubs in Africa, Asia, Europe and Oceania. China is the European Union's biggest source of imports and its

second-largest export market, adding up to more than $1 billion in trade per day. And sea shipping outweighs

rail or air freight.

Terminal operators Europe and Mediterranean: Chinese COSCO Shipping Ports and CMPort

hold stakes in 16 ports

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But this is about more than just moving cargo, analysts say. President Xi Jinping's new silk road, named after

the ancient trade route, has sped up China's advance toward becoming a superpower of the seas, spreading

not just commercial ships but naval power and influence to more and more areas of the world.

For instance, Chinese investments in the ports of Djibouti, Sri Lanka and Pakistan have been followed by

Chinese naval deployments. While there are no public plans to turn European ports into Beijing's military

bases, Chinese warships have already paid a friendly visit to Greece's Piraeus port. This all raises a slew of

questions about issues ranging from military defense to labor conditions.

"The main issue is for Europe to decide how it wants to deal with China's influence," says Frans-Paul van der

Putten, a China expert at the Netherlands Institute of International Relations. "What degree of China's

influence is unavoidable and acceptable especially in sectors such as ports?"

‗Surround it and squeeze it‘

The port investment spree has already unsettled EU leadership. In September 2017, European Commission

President Jean-Claude Juncker proposed new investment screening measures for foreign state-owned

companies that want "to purchase a European harbor, part of our energy infrastructure or a defense

technology firm."

"It is a political responsibility to know what is going on in our own backyard so we can protect our collective

security," Juncker said.

Europe often sends Beijing mixed messages by welcoming trade deals while criticizing China's human rights

record. But last year, the EU failed to unite around a statement condemning China's crackdown on activists

and dissidents. That's because Greece blocked the resolution, calling the criticism of China "unconstructive."

"There's a phrase, 'pre-emptive obedience,' that's often used to discuss relations with the Chinese," says

Theresa Fallon, a China analyst in Brussels. "It means making decisions with the idea of not upsetting China.

That's already happening, and it's worrying if you consider the stakes. If you think of China's growth strategy

[in maritime ports], they've invested all along the peripheries of Europe. So it's like an anaconda strategy:

Surround it and squeeze it."

Others are less alarmed but note China's power. "I think we should be aware of the fact that the Chinese are

using the moment and the ability that Europe is giving China," says Arthur van Dijk, president of the Dutch

Association for Transport and Logistics. "For us, it's also a wake-up call. We have to be quicker, smarter,

better."

Labor concerns at the fastest-growing port

COSCO, with the world's fourth-largest container shipping fleet, is leading the charge in Europe, beginning

with Piraeus. In 2016, after years of investment, the company bought a majority stake in the Piraeus Port

Authority in a concession agreement that runs until at least 2052. It is now in charge of container terminals,

cruise ship piers and ferry quays.

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Port of Piraeus. Credit: Joanna Kakissis / NPR

"A few years ago, when COSCO first became involved in Greece, the European view was it was good

because Greece was in a lot of financial difficulties and at least someone wanted to invest there," van der

Putten says. "Piraeus was not a top-ranking port. People in Brussels thought it wouldn't have a lot of

significance."

Today, about 20 million passengers go through Piraeus each year. Since COSCO's takeover, it has become

the fastest-growing port in the world, according to the industry news outlet Seatrade Maritime. COSCO'S

chief executive in Piraeus, Capt. Fu Cheng Qui, says he wants to make it the largest in the Mediterranean.

In a 2015 interview with Germany's Der Spiegel magazine, Fu attributed the company's success to hard work

and said he found labor unions "superfluous" because they "promise their members more money for less

work."

"If you want a higher salary, you first need to work hard," he told the magazine. "Not lie on the beach and

drink beer."

About 1,700 people are employed at the Piraeus container terminals, many working for 16 days a month,

without benefits or job security, says Giorgos Gogos, general secretary of the port workers' union. They're

hired by subcontractors to COSCO like Diakinisis Logistics Services, which, he says, gets a cut of money

that should go to worker salaries.

"This is exploitation," Gogos says. "We assume that COSCO wants to make very fast profits. So they will try

to squeeze their expenses, and the incomes of workers are considered expenses. For us, these 'expenses' are

our income to support our families."

‘No one's colony’

The Greek government is trying to help workers while maintaining a good relationship with the Chinese.

"This is a hugely strategic port that lacked investment until COSCO came along," says Christos Lampridis,

general secretary of ports, port policy and maritime investments at the maritime affairs ministry. "There's

new equipment, new piers, a railroad connection."

COSCO has already spent nearly $700 million at Piraeus, the company said in a statement to NPR. The

Chinese and the Greek state have also developed a master plan for the area, and COSCO has committed to

invest an additional $350 million in the next five years. Immediate plans include upsizing the passenger and

car terminals and constructing a new oil pier. Future projects include building hotels and a cruise ship

terminal and developing a logistics center.

"All these investments will create jobs," Lampridis says. "It's just a pity that the Greek state didn't draft a

master plan itself far earlier."

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Chinese port and terminal operators are staking their claim in Europe and Mediterranean

ports 2

The list above excludes the stakes Hong Kong’s global port operator Hutchinson Ports holds in ports and terminals in

Spain, Belgium, The Netherlands, Germany, Poland, Sweden and the UK.

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Notes:

• Data for COSCO are from a combination of COSCO‘s map of overseas terminals and press releases, both

last accessed on Sept. 12, 2018.

• Excluding data for Kumport in the Port of Ambarli, data for CMPort are from CMPort‘s 2017 Annual

Report and Olaf Merk‘s paper, Geopolitics and Commercial Seaports. Details for CMPort‘s share in

Kumport are from COSCO‘s press release on the investment.

• Information on QPI‘s percent stake in the Vado Reefer Terminal is from a press release issued by APM

Terminals, a member in the Vado venture.

Source: Olaf Merk: Geopolitics and Commercial Seaports [2017], China Merchants Port Holdings and

COSCO Shipping Ports

Piraeus is the only port in Europe where a Chinese shipping company runs the port authority. But Greek

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officials have tried to retain some oversight. The company has clashed with the Greek state-run Public

Authority of Piraeus Port, accusing it of disputing the privatization of the port and interfering in COSCO

affairs.

"A privatized port is a new situation for everybody," says Demosthenis Bakopoulos, the head of the state

regulator. It's a change "for the port that was under public control, for the workers, because they were public

servants and are not anymore, for the state. There are always misunderstandings, problems that demand new

solutions."

The EU has pointed out that one of those problems is smuggling. Earlier this year, EU authorities suspected

Chinese gangs of trafficking goods through Piraeus to avoid value-added tax. Bakopoulos says such

activities likely predate COSCO. "We also had smuggling before the privatization, and of course, we will

have it after the privatization, because smuggling occurs in ports," he says.

The Greeks are sensitive to criticism that the Piraeus investments have left them beholden to the Chinese.

Panagiotis Kouroumblis, who was serving as Greece's shipping minister when he spoke to NPR last month,

declared that "Greece is a sovereign country, part of the European Union, and is no one's colony."

(Kouroumblis was replaced in a Cabinet reshuffle on Aug. 28.)

He downplayed concerns about Greece blocking EU criticism of China. "There are many reasons why a

country is careful about condemning another country," Kouroumblis says. "I mean, does the U.S. vote

against its interests at the U.N.? So Greece also has the right to make a decision based on its own interests."

China pushes northwest

COSCO's most recent port investment in Europe is in the North Sea harbor town of Zeebrugge in Belgium.

Last year, APM Terminals of the Maersk Group, pulled out of the container terminal and COSCO stepped in.

In January, the company signed a concession agreement for the container terminal in Zeebrugge, Belgium's

second-largest port. Unlike Piraeus, Zeebrugge's port authority remains — by law — under Belgian control.

COSCO's most recent port investment in Europe is in the North Sea harbor town of Zeebrugge in Belgium.

Credit: Eric Vidal / Reuters

"They are not buying the port; they are not buying shares of the port authority," says Joachim Coens, the CEO

of Zeebrugge port. "They are just renting the infrastructure to do business for a certain period."

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Terminal operators Malaysia: North Butterworth Container Terminal to increase capacity by

300,000 TEU

The unostentatious port city, a short drive from the canals and cobbled streets of Bruges, is busy with ferries,

fish trawlers and automobile deliveries. But its container terminal has always been outshone by the nearby

ports of Rotterdam in the Netherlands and Antwerp in Belgium, Europe's two biggest ports.

[NPR – National Public Radio]

09/10/2018

With a RM500mil capital expenditure for the next five years, the North Butterworth Container Terminal

(NBCT) is set to shed its image of a feeder port.

Revamp underway: An aerial view of NBCT in Butterworth, Penang. Credit: The Star For a start, a

RM150mil expansion plan has been approved to upgrade its present facilities to accommodate bigger ships,

said Penang Port Sdn Bhd‘s (PPSB) chief executive officer V. Sasedharan. ―NBCT is set to be transformed

into a major port of call for cargo ships with operations in the north. ―The RM150mil is basically for

strengthening the berth which would increase the capacity by 300,000 TEU.‖

―The balance of RM350mil would be used to purchase two new cranes costing around RM60mil each with

the remainder to be used for other projects, primarily to increase the capacity at NBCT,‖ he said. Sasedharan

said the plan was to increase the present 1.6 million TEUs to 7.4 million TEUs by 2023.

Sasedharan said dredging work was also in progress. ―Penang waters is unique as it has very high siltation

and needs to be dredged every year as the cargo ships need a deeper draught. The deepest cargo vessel that

comes to Penang is 12m deep and under the provision of the concessions, it is required to go up to 14m.

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Port development Baltic Sea: EUR 71.2 million upgrade for Tallinn - Helsinki maritime link

―It will cost us between RM200mil and RM300mil in dredging cost and the present plan, if needed was to

dredge up to a distance of between 10km and 12km,‖ Sasedharan said.

[The Star Online]

09/10/2018

The EU has approved a EUR 21.4 million funding for infrastructure upgrade at the Estonian port of Tallinn

and Finnish port of Helsinki, together with the City of Helsinki and the passenger ship operators Tallink,

Viking Line and Eckerö Line. The funding was secured under the 2017 CEF Transport Blending Call for

proposals and the total cost of the planned investments is EUR 71.2 million.

Tallinn-Helsinki line is one of the busiest international passenger-lines in the world, serving nearly nine

million passengers per year, while trucks and trailers carry over four million tons of cargo per year, according

to Valdo Kalm, CEO of Port of Tallinn. The flows of traffic and passengers between the two cities have been

constantly growing for a decade already. Therefore, the project is crucial for both cargo and passenger flows

to ensure the smooth traffic between Helsinki and Tallinn.

The previous two TWIN-PORT projects mainly consisted of building and development of the passenger

terminals in Helsinki and Tallinn, opening the Muuga-Vuosaari ro-ro line and bringing a new LNG-fueled

ferry 'MS Megastar' to serve Tallinn-Helsinki line.

The current TWIN-PORT 3 project will concentrate on reducing the environmental impact of the increasing

RoPax traffic while continuing improving the multimodal transport link between Helsinki and Tallinn. There

are several traffic investments planned in connection with the Helsinki West Harbour by improving the

transportation system and thus reducing congestion on the last-mile.

―With EU support some streets in Helsinki will get new lanes, the tram routes will be improved and a new

bridge connecting the harbour area will be constructed. We will build a new multimodal solution close to

West Terminal 2 to connect different modes of transport seamlessly with ferries. These investments will have

a significant impact to the passenger journey and traffic ‗smoothness‘ on the whole Helsinki-Tallinn

maritime link,‖ explained Ville Haapasaari, CEO of the Port of Helsinki.

Further, auto-mooring and onshore power supply systems will be installed to the Old City Harbour in Tallinn

and to the West Harbour in Helsinki to reduce noise and air pollutant in port areas.

The ship operators will retrofit its RoPax ferries to be able to shut down the auxiliary engines while in port,

resulting in quiet operations, without vibration or CO2 exhaust gases and air pollutants.

―Optimization of the process means a significant reduction of environmental impact. The planned on-shore

power and auto mooring systems will reduce air pollution and noise emissions at the ports, which affects

positively mainly the residents and businesses in the port area,‖ said Valdo Kalm.

The Port of Tallinn will also upgrade its safety systems and continue constructing sewerages to enlarge the

sewage receiving service to all the passenger ships quays. In addition, Tallink‘s vessel 'MS Megastar' will be

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Port development Ecuador: Guayaquil awards $100 million contract for deepening of access

channel

Port development Vietnam: Mekong Delta ports need better linkages to increase efficiency

fitted with batteries that will be re-charged during the voyage and give further possibilities to operate the

vessel via electricity while berthing.

TWIN-PORT 3 project will involve the period 2018-2023. Largest investments will be made by the Port of

Helsinki and the City of Helsinki, EUR 24 million and EUR 27 million respectively. The Port of Tallinn will

invest EUR 16 million and the ship operators EUR 4 million in total.

The CEF (Connecting Europe Facility) program is a continuation to TEN-T, where the initial TWIN-PORT

project was started. The second follow-up project is called TWIN-PORT 3. The development of the

Helsinki-Tallinn maritime link as part of the TEN-T North Sea - Baltic core corridor has a vital importance as

it connects the northern parts of Europe with southern TEN-T corridors.

[SAFETY4SEA]

09/10/2018

By Michele Labrut

The Belgian company Jan de Nul was been awarded dredging works to deepen the access of the access

channel for the Port of Guayaquil, Ecuador.

The contract with the company will be signed in 60 days and it will immediately start the works that have an

investment value of around $100m. The Technical Commission of Guayaquil municipality decided to award

the contract to Jan de Nul after finalising an international public tender that started on 26 March.

The dredging for the maintenance and operation of the access channels, and works that will be carried out a

Public-Private Partnership for the next 25 years. In addition, the commission indicated that Jan de Nul was

awarded the contract after presenting the lowest rate for the user of international traffic, with a rate $0.62 of

value per Gross Registered Tonnage (GRT) of the vessels, and for having supported their financial offer with

a letter of financial intention.

The dredging project will allow the access channel to the Port of Guayaquil to increase from a depth of 9.5

metres to 12.5 metres, for the entry of larger vessels.

[Seatrade Maritime News]

09/10/2018

About 85 million tonnes of goods are being loaded at ports in the region each year, according to Trinh The

Cuong from the Viet Nam Maritime Administration.

However, the seaports handle only 20-25 per cent of the total cargo shipped by sea in the region, while the

remaining is transported through ports in the southeastern region, he said. The Ministry of Transport‘s

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Planning and Investment Department blamed the problem on inefficiency and poor management of the

existing ports.

Transportation of goods via Cai Cui, Hoang Dieu and Tra Noc ports in Can Tho City reached 2.11 million

tonnes in 2015, 1.04 million tonnes last year, and 0.548 million tonnes in the first three months of this year.

Although the Government has designated ports in Can Tho City as the main shipping hub of the delta, their

overall operations represented only 35 per cent of the total capacity. As of the end of 2016, Tan Cang-Cai Cui

Port was still focusing on container ships, and had not reached even 10 per cent of its capacity.

The owner of a container shipping unit in HCM City said that one tonne of cargo transported from the

Mekong Delta to HCM City ports via sea costs $10, while transport costs by road are $11-16. However,

door-to-door sea transport services are higher in costs compared to roads because of the cost of loading and

unloading, which accounts for 35-40 per cent of total costs.

The transit time via sea is more than five times longer, he said. ―That is the reason shipping in the Mekong

Delta is not attracting goods with high transport quality requirements,‖ he said.

Dao Anh Dung, deputy chairman of Can Tho City‘s People‘s Committee, said the Government has approved

the city‘s proposal to expand a logistics centre with a total area of 242.2ha at Cai Cui Port in Hung Phu

Industrial Zone 1B in Cai Rang District. ―This logistics centre plan is expected to be approved this year,‖ he

said.

Source: World Port Source

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Oil & gas shipping: China slashes U.S. LPG imports amid trade war

Tran Tuan Hai, head of the Viet Nam National Shipping Lines‘s (Vinalines) Communication and

Development Strategy Department, said Vinalines was working with the Phnom Penh Autonomous Port

(PPAP) in Cambodia to set up a new container transport route from PPAP to ports in Can Tho to improve

cargo capacity.

Coordinating with PetroVietnam Power Corporation (PV Power), Vinalines has also launched a container

transport route from Cai Cui Port to Singapore to transport coal to PV Power‘s power plants, with output up

to 7 million tonnes per year. ―This area also lacks dry ports and logistics centres to serve as transit points.

Therefore, transport capacity is limited, and there are long waiting times and higher transport costs,‖ he said.

Minister of Transport Nguyen Van The said that the Cai Cui Port in Can Tho City should be built and act as

a key logistics centre in the delta and an international trading and transshipment hub in the region. He also

assigned the Ministry of Transport‘s Planning and Investment Department to coordinate with the Viet Nam

Maritime Administration to complete the overall planning of Tran De Port in Soc Trang.

Preferential policies on charges and fees are also urgently needed to encourage container ships to carry goods

directly to Mekong Delta ports. Group 6 ports include river ports and seaports in 12 provinces and cities,

including Cao Lanh-Sa Dec Port in Dong Thap Province, My Tho Port in Tien Giang Province, Vinh Thai

Port in Vinh Long City, Ham Luong Port in Ben Tre Province and ports along the Tien River. These ports

receive boats of 5,000 deadweight tonnes (DWT).

Seaports serving vessels of 10,000 to 20,000 DWT on the Hau River include Hoang Dieu, Cai Cui and Tra

Noc ports in Can Tho City, My Thoi Port in An Giang Province, Dai Ngai Port in Soc Trang Province and

Tra Cu Port in Tra Vinh Province and other specialised ports. For ships of 5,000 to 10,000 DWT, seaports in

the Ca Mau peninsula and the Gulf of Thailand include Nam Can Port in Ca Mau Province, and Hon Chong,

Bai No, Binh Tri and specialised ports in Kien Giang Province‘s western coast.

By 2020, the ports‘ combined capacity in the region is expected to transport 28 million tonnes of goods

annually and 71.5 million tonnes by 2030. Of the figure, cargo and container ships will account for 21-26

million tonnes of the total annual volume.

[VNS]

09/10/2018

By Seng Li Peng

China has choked back on imports of liquefied petroleum gas (LPG) from the United States, traders and

analysts said, turning to the Middle East for extra supplies amid the two countries‘ trade dispute.

The fall came as Chinese buyers wound back U.S. purchases of LPG amid uncertainty about the impact of

buying product from the United States, said a trader who tracks the fuel. No U.S. LPG cargoes have landed in

China since tariffs were imposed in late August, said Ong Han Wee at consultancy FGE.

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Source: China Customs / Reuters

―China has stopped shipping in U.S. LPG cargoes as they are now too expensive,‖ added a second trader who

tracks LPG cargoes.

The United States last year accounted for about 20 percent of China‘s total LPG imports, which are currently

running at about $1 billion a month, based on Thomson Reuters calculation. The U.S. gap is being filled

largely by Qatar, the United Arab Emirates (UAE), Saudi Arabia and Kuwait, analysts said.

The change comes as prices for the fuel, often a mix of propane and butane, spike in line with higher oil

prices. State-owned Saudi Aramco, whose contract prices are used as benchmarks in Asia, fixed its propane

and butane contract prices for October at $655 a tonne, the highest since 2014.

U.S. prices are also rising. The propane price at the Texan Mont Belvieu hub hit its highest since 2014 on

Sept. 28 at around 108 cents per gallon before easing to around 104 cents on Oct. 9. This works out to about

$542 a tonne, based on Reuters calculations, but is above the Saudi Aramco price after considering freight

and terminal charges and the additional 25 percent tariff.

China‘s LPG imports rose about 15 percent to nearly 18.3 million tonnes in 2017, driven partly by new

petrochemicals plants which use the propane dehydrogenation method to produce the raw material for

plastics. IHS‘s He said LPG prices were likely to stay firm in November and December due to higher oil

prices and winter demand.

[Reuters]

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09/10/2018

By Peter Sand

Total US crude exports to all destinations other than China hit a new all-time high in September at 6.96

million tonnes.

In August, no US seaborne exports of crude oil to China were recorded. A massive change to the export

pattern seen since early 2017. Chinese buyers, led by the world‘s top tanker charterer Unipec, were rumoured

to have stayed away – and new data proves it. Now rumours have it, that Chinese buyers returned in early

October, data will eventually show if this is right and to what extent at a later stage.

Despite being left out of the ‗official‘ trade war at the last minute, crude oil was removed from the Chinese

USD 16 billion list before it came into force on 23 August 2018, crude oil exports are now taking centre stage.

BIMCO‘s Chief Shipping Analyst Peter Sand comments: ―The tanker shipping industry is hurt when distant

US crude oil export destinations like China, are swapped for much shorter hauls into the Caribbean and

South, North and Central America.

Oil & gas shipping: U.S. crude oil exports to China drop to zero in August

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Container shipping: Anger in Europe as state subsidies for South Korean carrier HMM soar

The trade war is all around us now. What appeared on the horizon half a year ago is now impacting many

seaborne trading lanes. All commodities may be impacted regardless of them being officially tariffed or not.

What we see in terms of crude oil transport, is harmful to the global shipping industry as well as cumbersome

to the exporters and importers of the product.

In 2017, Chinese imports accounted to 23% of total US crude oil exports. In 2018 that number was 22%

during the first seven month. In August the share fell to 0%.

US crude oil exports to any other destination were record high

Total US crude oil exports excluding china hit a new all-time high in September at 6.96 million tonnes.

Exports to Asia jumped in June and July, from a 43% share of total exports since the start of 2017 to reach a

56% share. In August that share fell back to 46%. The two other major importing regions are Europe (26%)

and North and Central America (18%), while South America (5%), Caribbean (2%) and Others (4%) make

up the rest. (August share of exports in brackets)

Chief Shipping Analyst Peter Sand adds: ―For the crude oil tanker shipping industry distances often matter

more than volumes. Even though volumes were record high, tonne-mile demand dropped by 19% from July

to August due to the shift in trade patterns. Exports to Asia are by far the most important. When measuring

the tanker demand in tonnes-miles (TM), exports of US crude oil to Asia generated 70% of TM-demand on

that trade in August– down from 78% in June and 75% in July."

[BIMCO]

09/10/2018

By Mike Wackett

State-owned Korea Ocean Business Corporation (KOBC) has, reportedly, signed off on some W6.15trn

($5.4bn) of new funding for the country‘s biggest ocean carrier, Hyundai Merchant Marine (HMM) – but

much of this cash will be needed to cover continued operations.

KOBC, launched in July this year to support South Korea‘s ailing shipping industry, has already supported

HMM with a $740m sale-leaseback transaction on 10 of its ships, based on the original value of the vessels

rather than their actual market value.

HMM recorded a net loss of $1.1bn last year and is heading for another big deficit after posting a loss of

$371m after six months of this year – the worst-performing carrier in the liner industry‘s cumulative $1.2bn

loss. On 28 September, HMM confirmed it had signed formal contracts for South Korean yards to build 12

23,000 teu ships, for delivery in the second quarter of 2020 and eight 15,000 teu vessels to be delivered a year

later.

No financial details of the transactions were revealed, but the ULCVs could cost about $150m a unit to build,

with the smaller ships upwards of $100m each. The contracts have been underwritten by the KOBC.

After the bankruptcy of Hanjin in 2016, South Korea has struggled with its status in world shipping, its new

flag-carrier, HMM, forced to play a bit part in a slot chartering role with the 2M Alliance, after being rejected

by THE Alliance due to financial concerns. However, in April HMM launched a weekly standalone

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Container shipping: Carriers sail towards a tipping point of freight rates and fuel

Asia-North Europe loop deploying a fleet of panamax vessels. But in July the carrier stopped calling at

Southampton due to schedule reliability issues, only to reinstate the port this month after the 2M temporarily

suspended a main loop.

Following the change of power in South Korea, sources have told The Loadstar the government ―will do

whatever it takes‖ to keep Korean shipping and shipbuilding afloat. At a sales meeting in December, HMM‘s

president and chief executive, CK Yoo, pledged to ―regain customer trust‖ and explained the rationale behind

the big ship orders. He said: ―This mega-ship building project is in accordance with the expectation for being

a leading shipping nation.‖

However, European shipowners and builders have spoken out about South Korean state aid and welcomed a

recent statement by the EU that pointed to unfair trade practices in Asia.

In a statement on Friday, SEA Europe secretary general Christophe Tytgat said: ―The latest support measures

from South Korea are clearly an example of unfair competitive distortions. By creating artificial demands

through state aid, South Korea has regrettably contributed to today‘s severe overcapacity in merchant

shipbuilding and merchant shipping, with dramatic, far-reaching consequences for all market players, first

for European shipbuilding and now also for European shipowners and the entire maritime value chain.

―Europe now needs to be vigilant that the same unfair trade practices with the same potential devastating

effects are not repeated in other shipbuilding and shipping segments.‖

HMM‘s three-year deal with the 2M partners will come to an end in March 2020 just as the new ships are

being delivered. It is unlikely that Maersk and MSC will allow HMM to become a full member of the 2M and

speculation is that the carrier will use its new ULCVs and underwriting from the South Korean government

to support a new application for membership of THE Alliance.

And, in a strategic ploy to become more competitive, HMM said the newbuilds would have exhaust gas

cleaning systems (scrubbers) installed to enable the ships to burn the less-expensive heavy fuel oil after the

IMO 2020 low-sulphur regulations are introduced.

[The Loadstar]

08/10/2018

By Mike Wackett

The bellwether Shanghai Container Freight Index (SCFI) did not publish on Monday, due to the national

holiday in China, but current sentiment suggests that ocean carriers will find their rates under pressure

following the Golden Week break.

Last month, the Asia to North Europe component of the SCFI shed 21% to $735 per teu, while for

Mediterranean ports there was a smaller decline of 15% to $767 per teu. Anecdotal reports from The

Loadstar‘s sources refer to a ―sharp dip‖ in load factors on the route in the two weeks leading up the national

factory shutdown, from a peak season high of over 95% to below 90%.

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Oil & gas shipping: BW drops $1 billion hostile bid for rival LPG carrier Dorian

The demand slowdown reinforces the strategy of carriers to axe more than 200,000 teu of headhaul capacity

this month, including the 2M‘s AE2/Swan loop. Taking out a massive 11 westbound sailings is designed to

―stop the spot rate rot‖, but a decision by Maersk, MSC and CMA CGM to cut FAK rates has, arguably,

negated the initiative. The sliding spot rates will also put carrier negotiators on the back foot as they prepare

for the first round of meetings with major contract customers to renew annual contracts.

Meanwhile, on the transpacific tradelane, the jury is still out on the impact on forward bookings of US

retailers stocking up in advance of Trump trade tariff hikes on a vast range of consumer imports.

Significantly, utilisation levels on Asia to US sailings were maintained in the high 90s in the lead up to the

Golden Week holiday and the demand surge propelled spot rates to highs of some $2,350 per 40ft for the US

west coast and $3,500 for US east coast ports. This represents a year-on-year increase of 66% and 75%

respectively.

But the rates currently enjoyed by transpacific carriers could be short-lived if demand weakens substantially

this month. After a long run of successful GRIs, carriers have been obliged to row back on their last two rate

hikes, cancelling both the mid-September and 1 October GRIs.

―As the China-US tariff war ratcheted up, many US importers stocked up in advance of the high-turnover

Thanksgiving and Christmas seasons,‖ noted Freightos chief executive Zvi Schreiber.

Notwithstanding carrier concerns over the stability of freight rates on the two biggest liner trades, they are

also facing considerable cost pressures. The price of IFO380 heavy fuel oil jumped another $9 yesterday to

about $480 per ton for Rotterdam-sourced bunkers. Since the start of the week, IFO380 has surged by some

$30 per ton, which for an ULCV burning some 100 tons a day will put significant loading on the roundtrip

voyages of the liner ships.

It follows that, after the heavy losses suffered by carriers in the first six months of the year, managers will be

looking to reactivate the emergency bunker surcharges rolled out in the summer, but given back later via rate

discounting.

[The Loadstar]

10/2018

By Costas Paris

Merger would have created world‘s biggest fleet of gas carriers.

Norway‘s BW LPG has dropped a hostile $1.1 billion takeover bid for U.S.-based Dorian LPG Ltd., which

would have created the world‘s biggest fleet of gas carriers for moving petroleum products like propane and

butane.

―It is not normal practice nor in the best interest of our shareholders to hold a proposal open indefinitely,

especially when it is highly favorable to the counterparty,‖ BW‘s chairman, Andreas Sohmen-Pao, said in a

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Marine pollution: Collision off Corsica causing three-mile long oil spill

letter to Dorian‘s chief executive, John Hadjipateras on Monday. ―Accordingly, we hereby withdraw our

proposal.‖

Dorian CEO John Hatzipateras said in a letter to BW on Monday that Dorian had repeatedly invited a higher

offer but its requests were never considered.

Liquefied-petroleum gas carriers are a rare bright spot in an otherwise depressed shipping market, beset by

overcapacity and below-cost freight rates. But demand for liquefied-petroleum carriers is brisk, mainly to

handle fast-growing U.S. propane exports to Asian markets such as Japan, China, South Korea and Singapore

that use it for heating and cooking and as fuel for cars and buses.

Data from the U.S. Energy Information Administration show U.S. propane shipments tripled from 300,000

barrels a day in 2013 to 900,000 barrels a day last year.

Oslo-listed BW launched its takeover attempt in May. If the merger had gone through, Dorian would have

controlled 46% of the combined entity, with BW holding the remainder. Mr. Sohmen-Pao said BW is still

open to the merger if Dorian‘s board decides to restart talks.

BW operates a fleet of 44 very large gas carriers and Dorian operates 22 ships. Shares of Dorian, which is

based in Stamford, Conn., fell 5.4% to $7.62 on Monday.

[The Wall Street Journal]

08/10/2018

By Costas Paris

A containership and a ferry collided off the island of Corsica in the Mediterranean Sea, causing a three-mile

long spill of heavy fuel, with French and Italian coastal authorities scrambling to contain it.

French maritime officials said the Tunisia registered ferry Ulysse carrying trucks, rammed on Sunday the

Cyprus registered CSL Virginia, which was anchored around 15 miles off the Corsican coast. The collision

smashed a hole in the hull of one of the ships, causing the fuel leak. There were no injuries.

The Ulysse, a Tunisian ferry (left), collided with the Cypriot registered container ship CLS Virginia around

15 miles off the Corsican coast. Photographi is a handout from French authorities. Photo: Stanislas

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Shipping emissions France: American captain on trial over pollution as ports grapple with

impact of huge cruise liners

Gentien/Agence France-Presse

―The spill is quite big, but there is not much wind, which will help the containment efforts,‖ one official said.

―We still don‘t know how much more fuel may spill when the two ships are separated, but we are putting

booms to contain it.‖

It wasn‘t immediately known how much fuel the two vessels had in their tanks. The Ulysse was on its way

from Genoa to Tunisia and a picture released by the French Navy showed its bow smashed up against the

right side of the Virginia. Two French and three Italian ships were sent to the area along with helicopters and

aircraft. An investigation is under way into what caused the collision.

[The Wall Street Journal]

08/10/2018

By Henry Samuel

The American captain of a giant cruise liner is standing trial in Marseille on charges of breaching pollution

limits in the first such case in France amid rising concerns over the smog threat from such massive tourist

ships.

Evans Hoyt, 58, has been charged with burning bunker fuel containing 1.68 per cent sulphur - above the

European limit of 1.5 per cent. Favoured by cruise liners due to its lower cost, high-sulphur fuel produces

sulphur oxides that contribute to the acidification of rain and oceans. Mr Hoyt was prosecuted after a spot

check on his ship Azura - a liner of up to 3,000 berths and one of the largest in the fleet of P&O Cruises,

whose parent company Carnival is also being charged. He faces up to one year in prison and a €200,000

(£176,000) fine.

Tracked down by investigators a few days after the testing during a stop east of Marseille, the captain - not

present in court - has admitted using the fuel. In court, his lawyer, Bertrand Coste contended that European

environment rules unfairly distinguished between cruise ship limits and those for cargo vessels, which is

higher, saying this meant there was a lack of "equality before the law". He also sought to have the trial

annulled due to alleged procedural errors.

"The defence is pulling out the stops so that the captain of the Azura escapes his responsibilities," responded

prosecutor Franck Laugier, adding that the charges were justified.

The trial is politically sensitive for Marseille as the southern port city is on a drive to become the

Mediterranean‘s top cruise liner destination with two million visitors in 2020 - up from 1.55 million this year.

At the same time, it has been tackling rising problems linked to smog with authorities saying that up to a fifth

of the dangerous particulate matter in Marseille's air comes from such ships. These reach levels 100 times

higher near the city's busy port than further inland.

Even when not on the move, a single ship emits as much pollution as 10,000 to 30,000 cars, according to

AirPaca, the regional air pollution monitoring agency. At sea, it guzzles on average 2,000 litres of fuel per

hour, making the combined consumption equivalent to around a million cars, environmental groups say.

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Hidrovía Paraná - Paraguay: Relevancia logística de una nueva concesión para dragar el río

Paraná

According to Rostock university and the German environmental research centre Helmholz Zentrum Munich,

maritime transport emissions are responsible for 60,000 premature deaths per year and account for €58 billion

in health costs in Europe, notably respiratory and heart disease.

While the captain appeared to only narrowly surpass the limits, the trial comes as the UN's International

Maritime Organization is due to impose the far stricter ceiling of 0.5 percent in 2020. Environmental groups

are pushing for an ever lower limit, citing the 0.1 percent sulphur ceiling in force in the Baltic Sea, the North

Sea and along coastlines in North America and the Caribbean.

For the NGO France Nature Environment, the Azura case underlines ―the sense of impunity liner captains and

cruise companies feel due to the difficulties in controlling illicit activities and the low level of legal

procedures around the world on this matter‖.

Defence lawyers are expected to call for an acquittal, arguing that the 1.5 per cent limit does not apply to the

Azura as it is not a ―regular‖ visitor to European ports, in which case the limit is 3.5 per cent. Civil plaintiffs

say the European Court of Justice has already ruled in their favour on this point.

[The Telegraph]

08/10/2018

Obra beneficiaría la conexión fluvial entre los Puertos de Santa Fe, Argentina, y de Asunción, Paraguay.

De acuerdo con el informe Claves para reconfigurar el sistema de transporte de cargas y logística de

Argentina en 6 años: Hidrovía y Río Paraná, elaborado por la Bolsa de Comercio de Rosario (BCR), el

llamado a nueva licitación para la concesión del dragado y balizamiento del Río Paraná en el Tramo Gran

Rosario - Océano, podría implicar una inversión relevante a favor del transporte de los productos

agropecuarios de Argentina, teniendo en cuenta que la actual vence en 2021.

Ante ese escenario el Gobierno de Argentina ha informado su decisión de llevar a cabo una nueva licitación

pública nacional e internacional para seleccionar un nuevo concesionario. Cabe recordar que esta iniciativa se

lleva adelante desde 1995 y fue en el año 2010, que a través del Decreto N° 113/2010, se ratificó la

Renegociación y Ampliación del Contrato de Concesión entre el Estado Nacional e Hidrovía S.A. y ahí se

estableció que comprendía desde la zona al norte del Puerto de Santa Fe, entre el km 584 hasta Asunción

(República del Paraguay) en el km. 1.619, por los ríos Paraná y Paraguay.

Al respecto, en el informe denominado ―Mesa de Trabajo público-privada para la Red Troncal de navegación

del río Paraná‖, del que hizo parte la BCR y otras entidades privadas, se estima que el total de cargas en la

Hidrovía Paraguay- Paraná, en el tramo fluviomarítimo (Santa Fe - Océano), para buques de calado superior a

15 pies de profundidad ascendió a 135.130.654 toneladas durante el año 2017, en base a datos proporcionados

por la empresa Hidrovía S.A.

De estas, 74.000 toneladas corresponden a graneles sólidos, concentrándose principalmente agro graneles

que representan 66.000 toneladas; 36.000 toneladas a graneles líquidos, donde destaca la participación de

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combustibles con 30.000 toneladas; 11.000 toneladas se transfieren en contenedores. En menor medida se

efectúan actividades como el transporte de GNL, vehículos y transporte de carga refrigerada.

Fuente: BCR: Claves para reconfigurar el sistema de transporte de cargas y logística de Argentina en 6 años:

Hidrovía y Río Paraná (Octubre 2018

Uso de Hidrovía

Su importancia radica en que desde el Gran Rosario hasta el océano Atlántico transitan casi 4.500 buques en

el año. También de acuerdo con datos consignados por la BCR, en 2017 en la Hidrovía Paraná- Paraguay en el

tramo Corumbá (Brasil)- Océano se movilizó el 82% de los despachos de exportación argentinos de granos,

harinas y aceites de Argentina (72 T/M anuales sobre un total de 87 T/M).

Mientras que por el sistema Paraná-Paraguay-del Plata se concentró el 91% del movimiento de cargas

contenerizada de Argentina. La suma de los contenedores de las terminales del Puerto de Buenos Aires más

Rosario y Zárate ascendieron a 1.533.000 TEU sobre un total de 1.694.000 TEU.

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Por el Río Paraná hasta Escobar arribaron en el 2017 el 60% de los buques metaneros que recalaron en

Argentina con Gas Natural Licuado con las importaciones que realiza ENARSA (41 buques sobre 68). A su

vez el 51% de los cargamentos de GNL comprados por ENARSA en el año (2017) accedieron hasta Escobar.

Se trató de 2.300.000.000 metros cúbicos sobre un total nacional de 4.500.000.000, teniendo en cuenta que el

resto del GNL ingreso al nodo portuario de Bahía Blanca. Se movilizan anualmente más de 600.000

automóviles y es elevadísimo el movimiento de pasajeros en el Puerto de Buenos Aires; casi 313.000

personas en año en 102 cruceros (Ciclo 2015/2016).

Aportar a nueva licitación

Para aportar ideas e iniciativas al nuevo proceso de licitación, en la Provincia de Santa Fe se ha constituido la

denominada ―Mesa de Trabajo público-privada para la Red Troncal de navegación del río Paraná‖.

Esta última instancia está conformada por las siguientes entidades pública y privadas, que representativas de

más del 80% de la carga usuaria de la vía navegable: Bolsa de Comercio de Rosario, la Bolsa de Comercio de

Santa Fe, el Consejo Portuario Argentino, la Cámara de Puertos Privados Comerciales, la Cámara de

Actividades Portuaria y Marítimas, el Centro Marítimo Rosario, la Cámara de Comercio, Industria y

Servicios de San Lorenzo y su zona, el Gobierno de la Provincia de Santa Fe representado por la Secretaría de

Transporte y el Programa Santafesino de Desarrollo de la Hidrovía Paraguay-Paraná y los Entes

Administradores de los Puertos de Reconquista, Rosario, Santa Fe y Villa Constitución.

Esa instancia busca Impulsar el crecimiento del transporte acuático, el desarrollo de las hidrovías y la baja de

los costos logísticos; Plantear mejoras en la vía navegable Mantener la participación del sector privado en las

tareas de dragado y señalización de la vía navegable troncal. Desde la BCR recalcan que se considera como

clave una vez que finalice el actual contrato, esté adjudicado el nuevo.

A su vez que para la concesión se considere que la empresa adjudicataria cuente con probada solvencia

técnica, experiencia internacional reconocida en obras similares y eficiencia en la gestión de la obra.

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Terminal operators Philippines: ICTSI to expand Manila International Container Terminal

[MundoMarítimo / BCR]

08/10/2018

The Philippine Ports Authority (PPA) has given the nod for capacity improvements at the Manila

International Container Terminal (MICT), the flagship operation of International Container Terminal

Services, Inc. (ICTSI).

Foremost among these improvements is the first phase construction of Berths 7 and 8, set to begin on October

15. The second phase, to begin in February 19 pending final approvals, will add full back up area for the

future berths 9 and 10.

An artist‘s perspective of Berths 7 and 8 and the full back up area for Berths 9 and 10

The berth expansion, all with a controlling depth of 13.5 to 14.5 meters, will further strengthen MICT‘s

capacity to service the world‘s larger box ships and the increasing volume that comes with them, explains

Christian R. Gonzalez, ICTSI Global Corporate Head: ―On top of our commitments, the construction of these

berths is our response to the need for an increase in capacity and increased productivity over the longer term.

We also need to accommodate system changes, such as the steady increase in vessel size, the consolidation of

major shipping players, and the introduction of rail services.‖

Along with the berth expansion will be the addition of yard space with the construction of the back-up area for

berths 9 and 10. When completed, this additional area will give the terminal substantial flexibility to deal with

the increasing impact of weather-related issues and changes in the regulatory environment.

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Port development Italy: EIB approves USD 224 million for expansion of Civitavecchia and

new Fiumicino terminal

Port development Namibia: Walvis Bay’s new container terminal 85% complete

Complementing these capacity improvements are the upcoming arrivals of 16 new rubber-tired gantries

(RTG) in 2019, with the first eight RTGs available by April next year. At the quay, two more super post

Panamax quay cranes (QC) are expected to be delivered by next year. Three QCs were delivered earlier in the

year, and are already operational.

The construction of berth 7 is part of ICTSI‘s contractual obligations to upgrade, expand and develop the

MICT under its contract with the PPA. For 2018 alone, the ICTSI Group has allocated more than US$380

million for capital expenditure, including the expansion of the Manila flagship.

[American Journal of Transportation]

08/10/2018

The European Investment Bank (EIB) has approved the financing of EUR 195 million (USD 224 million) for

the expansion of the port of Civitavecchia and the construction of a new terminal at the port of Fiumicino.

Under the project, large infrastructure works are planned in Civitavecchia such as the completion of works on

the ferry docks and the extension of the breakwater as well as related road connections, according to a

statement issued by the Port Authority of Civitavecchia Fiumicino and Gaeta. In addition, the project will

include the construction of a new fishing dock and the first phase of the new terminal intended for ferries,

RoRo and cruise ships.

This is the largest loan awarded by EIB to a port authority in recent years, the port authority said. The Port

Authority of Civitavecchia Fiumicino and Gaeta is at the core of the logistics system linking Rome and

central Italy to the rest of Europe and the Mediterranean.

[World Maritime News]

08/10/2018

By Julia Louppova

The construction of the new container terminal at the Walvis Bay port in Namibia is 85% finalized with the

full completion scheduled for June 2019, says a statement of African Development Bank Group.

Supported by a loan of ZAR 2,982 mln (about USD 300 mln) from the African Development Bank, which

accounts for 87.6 % of the total costs, the Port of Walvis Bay‘s new container terminal is expected to increase

the port‘s container handling capacity from the current 355,000 TEU up to 1,005,000 TEU.

Strategically located on Africa‘s south-western coast, the modernized and larger port will mean easier and

much faster transit between Africa, Europe, Asia, and the Americas. The expansion of Walvis Bay is

expected to benefit not only Namibia, but also to cater for the whole SADC region, particularly Angola,

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VesselsValue: Tankers offer the most promising investment

South Africa, Democratic Republic of the Congo, and the land locked countries of Botswana, Zambia and

Zimbabwe.

According to Namibian Port Authority (Namport), the operator of the Port of Walvis Bay, the expansion

project consists of dredging and reclamation of 40 hectares of land offshore, where a modern container

terminal will be built. It will be linked to the existing port by a 106m wide solid access causeway also to be

reclaimed. The New Container Terminal will add a new 600m quay wall to the existing 1,800m berth line and

will be able to accommodate two container vessels of 8,000 TEU at once. It will be connected to the existing

port‘s road and rail network, utilities networks as well as communication systems.

The port‘s existing container terminal will be transformed into a multi-purpose terminal.

The project works are carried out by the Chinese companies. First of all, it is China Harbour Engineering

Company, with whom Namport placed an engineering, procurement and construction contract in November

2013, and in May 2014 the company started the expansion works. CCCC Guangzhou Dredging provided the

trailing suction hopper dredger to conduct dredging works at the port.

Four new STS cranes for the terminal were provided by Zhenhua Port Machinery Company (ZPMC) and

were delivered in February 2018. Namport expects that these cranes will double the handling capacity from

the current 15 containers per hour to about 30 to 40 containers per hour.

[port.today]

08/10/2018

Predicting the recovery in asset prices involves many factors, and the current strength of spot market returns,

or term hire rates are only a part of the story, VesselsValue said.

―Value investors still have plenty of opportunities to acquire prime aged assets at a significant discount to

their expected future market value.‖ According to VesselsValue, tankers offer the most promising investment

overall, as most large crude tankers still have significant upside remaining based on an analysis of expected

market trends over the next several years. However, opportunities abound in other vessel classes as well.

Page 71: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Ton mile demand for the Handysize bulkers remains on a gradual upwards slope. Additionally, the removal

of a significant number of older ships has preserved the value of prime age and fuel-efficient vessels in the

Panamax container segment.

The LR1 Tankers segment has seen a tough market environment over the past several years due to the large

growth in vessel supply, while Aframaxes have suffered from changes in trade patterns, but remain the

workhorses of the crude tanker fleet, and the average age of the fleet on the water remains high.

―Vessel specific forecasts give a much better view of the expected asset value performance, but the trend in

five-year-old asset values is a good starting point when looking for discounted vessels,‖ VesselsValue

concluded.

Page 72: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Oceans: High-res data offer most detailed look yet at trawl fishing footprint around the world

[VesselsValue]

08/10/2018

About a quarter of the world's seafood caught in the ocean comes from bottom trawling, a method that

involves dragging a net along the ocean's shelves and slopes to scoop up shrimp, cod, rockfish, sole and other

kinds of bottom-dwelling fish and shellfish. The technique impacts these seafloor ecosystems, because other

marine life and habitats can be killed or disturbed unintentionally as nets sweep across the seafloor.

Scientists agree that extensive bottom trawling can negatively affect marine ecosystems, but the central

question -- how much of the seafloor is trawled, or the so-called footprint of trawling -- has been hard to nail

down.

A new analysis that uses high-resolution data for 24 ocean regions in Africa, Europe, North and South

America and Australasia shows that 14 percent of the overall seafloor shallower than 1,000 meters (3,280

feet) is trawled. Most trawl fishing happens in this depth range along continental shelves and slopes in the

world's oceans. The study focused on this depth range, covering an area of about 7.8 million square

kilometers of ocean.

The paper, Bottom trawl fishing footprints on the world‘s continental shelves, published October 8 in the

Proceedings of the National Academy of Sciences, brought together 57 scientists based in 22 countries, with

expertise in mapping fishing activity from satellite monitoring and fishing logbook data. It shows that the

footprint of bottom-trawl fishing on continental shelves and slopes across the world's oceans often has been

substantially overestimated.

"Trawling has been a very controversial activity, and its footprint has not been quantified for so many regions

at a sufficiently high resolution," said lead author Ricardo Amoroso, who completed the research as a

University of Washington postdoctoral researcher in the School of Aquatic and Fishery Sciences. "When you

don't quantify the impacts of trawling at a fine scale, you end up with an overestimation of the trawling

footprint."

Previous analyses have mapped trawling on 1,000 or more square-kilometer grids, for example, compared

with the 1- to 3-square-kilometer grids used in this analysis.

Footprint estimates presented in this new paper also are more accurate than those described in some previous

studies because they use information about the gear used by fishing fleets, the authors explained. Knowing

whether a trawling net spans 10 meters or 100 meters, for example, helps to improve the estimate of the

seafloor area impacted.

While the authors found that 14 percent of the regions included in the study were trawled, there were major

regional differences. For example, only 0.4 percent of the seafloor off South Chile is trawled, while more than

80 percent of the seafloor in the Adriatic Sea, a part of the Mediterranean Sea found to have the most intense

footprint, is trawled.

Page 73: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

Additionally, trawling footprints covered less than 10 percent of the seafloor area in Australian and New

Zealand waters, and in the north Pacific's Aleutian Islands, East Bering Sea and the Gulf of Alaska, but

exceeded 50 percent in some European seas.

The study also provided evidence for related environmental benefits. In regions where fishing rates for

commercially fished trawl-caught stocks met accepted sustainability benchmarks, trawl footprints were

usually smaller, explained co-author Simon Jennings of the International Council for the Exploration of the

Sea.

"For those regions where bottom-trawling footprints were less than 10 percent of the seafloor area, fishing

rates on bottom-dwelling fish stocks almost always met international sustainability benchmarks. But when

footprints exceed 20 percent, they rarely met them," Jennings said.

The authors acknowledge that some regions known to have a lot of trawling activity were not included in this

study because data providing a detailed picture of fishing activity were not available. Southeast Asia is one of

those regions.

Still, this new paper offers the most comprehensive look yet at trawling activity worldwide, explained co-

author Ray Hilborn, a UW professor of aquatic and fishery sciences. It also describes a way to estimate

footprints from trawling in regions where gear dimensions, vessel speeds and total hours trawled are known,

but that lack the vessel-specific location data now collected by some fleets. "We are able to use this method to

make reasonably good estimates of the impact of trawling in places where we don't have fine-scale spatial

data," Hilborn said.

[University of Washington / ScienceDaily]

Page 74: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

PROFESSIONAL MEMBERSHIP

Advance your career by gaining Professional Recognition.Professional recognition is a visible mark of

quality, competence and commitment, and can give you a significant advantage in today‘s competitive

environment.

All who have the relevant qualifications and the required level of experience can apply for Professional

Membership of IAMSP.

The organization offers independent validation and integrity. Each grade of membership reflects an

individual‘s professional training, experience and qualifications. You can apply for Student Membership as

per following :

Fellow (FIAMSP)

To be elected as a fellow, the candidate must satisfy the council that he/she:

Has held for at least eight (8) years consecutively a high position of responsibility in shipping or related

business.

Has distinguished himself/herself in shipping practice.

Is a principal in a firm or a director of a company in the business or profession.

Members in this grade are entitle to use the initials FIAMSP After their names.

Full Member (MIAMSP)

Individuals holding an internationally recognised marine qualification, or who can prove that they have

practiced on a full time basis for a minimum of five (5) years as a consultant or marine surveyor.

Individuals who, by producing written reports can demonstrate that they have practiced marine surveying or

consultancy for at least five (5) years.

Individuals whose qualifications or experience shall be considered appropriate by the Professional

Assessment Committee.

Members may use the initials FMIAMSP after their names.

Associate Member (AMIAMSP)

Associate Membership shall be open to any person, partnership, company, firm or other corporate that does

not own a Ship but is engaged in ship operating or ship management. Associate Members can nominate one

(1) person to represent them in the Association. Associate Members are entitled to attend General Meetings

and to participate in discussion at such meetings but shall not vote or stand for election to the Board of

Directors.

Technician (TechIAMSP)

Individuals holding a recognised qualification, for example Inspector level 2 or higher (NACE, FROSIO,

ICorr), RMCI and IRMII, NDT Technicians (CSWIP), for example gauging personnel, divers or other

surveyors with at least three years full time practical experience in a marine related field. Technician

Members may use the designation TIAMSP after their names.

Affiliate (AFFIAMSP)

Graduates who do not meet the criteria for Full or Associate Membership and are continuing to train and gain

experience prior to applying for Associate Membership

Student (SIAMSP)

Individuals who are enrolled in training programs related to the maritime or shipping will be appointed as

student members of the Association for the duration of their course.

Page 75: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

LAST MEMBERSHIP

Fellow (FIAMSP)

Mr.Adolfo omar Cortes

Spain

Mr. MELARAYIL

GANGADHARAN SIBIN

India

Mr. Archisman Lahiri

India

Full Member (MIAMSP)

Mr. MARTINS Jorge

Brazil

Mr.Andrianombana Lanja Achille

Madagascar

M. Subbiah Thiyagarajah

Malaysia

Affiliate (AFFIAMSP)

M. Kirton Christopher

Singapore

M. Hubert Louis-philippe

France

Mrs. HELENA ISABEL

CAMPOS LANÇA PALMA

Portugal

Page 76: International Association of Marine and Shipping ... – 14 Oct 2018.pdf · Container shipping: Low-sulfur rule unknowns come into view INTERNATIONAL news 12/10/2018 By Hugh R. Morley,

UPCOMING EVENTS SUMMARY

October

LIQUEFACTION OF BULK CARGOES SEMINAR 18

America Square (Cavendish Venues), London

October GST & SHIPPING 2030 DIGITAL WEEK

22

Webinar London, 56273

October SCRUBBER SYSTEMS 2020

30

The Hallam (Cavendish venues), London

November

IRANIMEX 05

Kish International Exhibition Center Hormozgan Province Kish, 79417-83775 Iran

November GREEN SHIP TECHNOLOGY NORTH AMERICA

12

Intercontinental Times Square 300 W 44th St New York , 10036

November

SHIPPING2030 NORTH AMERICA 12

InterContinental New York Times Square 300 W 44th St New York, 10036

February 2019

12th Arctic Shipping Summit – Montreal

21

Montreal - venue TBC

April 2019 COPENHAGEN SHIPPING SUMMIT

21

The Øksne Hall Halmtorvet 11 Copenhagen, 1700 Danmark