Divestment of State Assets Which Will Facilitate Increased Investments a Good Thing For Jamaica – PM
“Divestment of assets is not a bad thing for Jamaicans if it is done correctly, if you find the right partners and if you have the right framework in place, Jamaicans benefit. Prime Minister Holness pointed out that approximately 200 additional Jamaicans have been employed by Kingston Freeport Terminal Limited (KFTL). Prime Minister the Most Hon. Andrew Holness says the divestment of state assets which will facilitate increased investments and yield greater levels of economic growth is “a good thing for Jamaica”. Meanwhile, Prime Minister Holness is proposing that the regulatory arm of the Government be strengthened, so that it can divest itself of assets to the private sector.“We have to put in place the framework in which private and public sectors can work together to have the full utilisation of our asset,” he said.He added that significant acreages of land exist around the port, which is now well placed to be developed for logistics, manufacturing and other forms of operations.“The Government will move very quickly to ensure that these possibilities are explored and developed so that Jamaicans can benefit,” he said.Chief Executive Officer, KFTL, Olivier Tretout, said the expansions being undertaken will redound to the benefit of the country.Other members of the touring party included: Minister without Portfolio in the Office of the Prime Minister, Hon. Dr. Horace Chang; President and Chief Executive Officer, Port Authority of Jamaica, Proffessor Gordon Shirley; Chairman of the Port Authority, Ambassador Nigel Clarke; and Permanent Secretary in the Office of the Prime Minister, Audrey Sewell.
Prime Minister the Most Hon. Andrew Holness says the divestment of State assets which will facilitate increased investments and yield greater levels of economic growth is “a good thing for Jamaica”.“Divestment of assets is not a bad thing for Jamaicans if it is done correctly, if you find the right partners and if you have the right framework in place, Jamaicans benefit. (These are) assets that we would not be able ourselves to utilise because of the fiscal constraints that exist, (so) those assets get to be utilised and in the utilisation of those assets, Jamaicans get employed,” he said.Prime Minister Holness pointed out that approximately 200 additional Jamaicans have been employed by Kingston Freeport Terminal Limited (KFTL).He was speaking following a tour of expansion works being undertaken by the KFTL at Port Bustamante on Friday (May 19).The expansion activities valued at US$456 million will include, among other things, structural developments to the berthing area to accommodate larger ships.KFTL is a subsidiary of the global terminal operators CMA CGM Group. The local company was established for the sole purpose of acting as the signatory to the KCT concession.The agreement gives KFTL a 30-year term concession, with the right to finance, expand, operate, maintain and transfer the KCT at the end of the concession period.Mr. Holness said the expansion of the facility is timely and places Jamaica in a better position to take advantage of the changes in logistics and shipping industries.“We would not at this time be in a position to find those resources with all that the Government has to do, we could not leave the asset there to further deteriorate and to become irrelevant as other ports are being developed and the shipping industry moves forward with new technology,” he said. Story Highlights
Story Highlights The Ministry of National Security is assuring citizens that its national closed-circuit television (CCTV) surveillance programme – Jamaica Eye – is not infringing on their right to privacy. “What we are really asking for is access to public-facing camera feed, as the Government has a responsibility to protect persons and to monitor those areas,” she said. Speaking at a recent JIS Think Tank, Legal Officer, Ministry of National Security, Tonelle Beecher, noted that the programme is voluntary “and not something placed on you mandatorily”. The Ministry of National Security is assuring citizens that its national closed-circuit television (CCTV) surveillance programme – Jamaica Eye – is not infringing on their right to privacy.Speaking at a recent JIS Think Tank, Legal Officer, Ministry of National Security, Tonelle Beecher, noted that the programme is voluntary “and not something placed on you mandatorily”.“What we are really asking for is access to public-facing camera feed, as the Government has a responsibility to protect persons and to monitor those areas,” she said.“We continue to operate within the law, and we have no intention of breaching the law as it relates to implementing the programme,” she added.Clause 34 of the Data Protection Act (DPA) provides exemption for the purposes of using data in the prevention and detection of crime, as well as the apprehension and prosecution of offenders.Senior Director of Modernisation and Strategic Projects in the Ministry, Arvel Grant, told JIS News that “as we roll out the programme, we continue to review (our procedures) and to ensure that we are not breaching the law in establishing the programme”.He noted that the feeds are being monitored at the Joint Information and Operations Centre at the Jamaica Defence Force (JDF), with request for footage being accommodated through an established security protocol.He explained that private citizens will not be able to make requests for the footage from JamaicaEye.However, persons making police reports may indicate if they saw a CCTV in the vicinity of an incident, whether it is an accident or crime. Based on this, the police can request footage.Implemented in March 2018, JamaicaEye is a public-private partnership designed to network CCTV cameras owned by the Ministry and accommodate feed from privately owned cameras.It is geared at improving public safety and emergency response, by providing useful footage in relation to criminal activity, accidents, natural disasters and other incidents.
Minister of Justice, Hon. Delroy Chuck, has encouraged Justices of the Peace (JPs) to partner with the police in the fight against crime, by being the eyes and ears of their communities.Giving the keynote address at the installation ceremony for 22 JPs for the parish of Trelawny, held at the Mangoes Beach Resort, Cooper’s Pen, on September 14, Mr. Chuck said JPs are appointed community leaders with an upper hand to help control crime.“You are the community leaders who we believe can demonstrate the integrity and the character that we feel that others can follow and I am depending on the Justices of the Peace across Jamaica to be the rebirth of what is good, what is hopeful, what is decent, what is civil and what is altogether right for Jamaica,” the Minister said.“JPs must be the persons who strengthen the moral and social fabric of communities, so when people see them, they must see leaders they want to emulate,” Mr. Chuck said.The Minister argued that far too many young people are being influenced by perpetrators of crime, and JPs need to be proactive and strive to be beacons of change in an effort to influence youngsters.“The youngsters in our communities need role models and unfortunately, the role models that are emerging in far too many communities are the scammers, the criminal dons and the gangsters. You the Justices of the Peace will have to make yourselves that shining beacon in your community, so that others may emulate things you do and emulate your actions,” added Mr. Chuck.The 22 men and women, which included Deputy Mayor of Falmouth and councillor for the Duncans division, Donovan White, and Councillor for the Ulster Spring division, Dr. Pauline Foster-Grant, took the Oath of Office before Custos Trelawny, Hon. Paul Muschett.This brings the number of serving Justices of the Peace in the parish to 249.
Story Highlights Transport and Mining Minister, Hon. Robert Montague, says that mining continues to play an important role in the country’s economic growth and development.He noted that gross domestic product (GDP) for the July to September 2018 quarter grew by 1.8 per cent, bolstered by significant improvement in mining and quarrying.Real value added for the mining and quarrying industry grew by an estimated 54 per cent, reflecting the increased output of alumina, which outweighed a decline in crude bauxite production.Alumina production increased by 65.7 per cent to 689 kilo tonnes.“We’re not done yet,” the Minister said.He was speaking to JIS News ahead of a tour of the mines and refinery operations of bauxite/alumina company Jamalco in Halse Hall, Clarendon, on January 10.He said that the Government has put measures in place to ensure the viability of the sector.These include the launch of a mining school, which has been training quarry operators, crafting a national mining policy, which is now before Cabinet, and the establishment of a quarry advisory committee to extend licences for on-land mining activities from one to 10 years.Mr. Montague noted that since taking office in March last year, he has signed a total of 26 exploratory licences for semi-precious minerals such as copper, cobalt, zinc, gold and silver.He further advised that he has given a mandate to Commissioner of Mines and Geology, Roy Nicholson, to examine mud lakes to unearth their usefulness.In a JIS News interview, Mr. Nicholson said a desk study is being undertaken, which will then be followed by the testing of the lakes.Mr. Montague was joined on the tour by State Minister in the National Security Ministry and Member of Parliament for South East Clarendon, Hon. Rudyard Spencer; Managing Director of Jamalco, Austin Mooney; Board Chairman, Dennis Morgan and members of the Jamaica Bauxite Institute (JBI). Real value added for the mining and quarrying industry grew by an estimated 54 per cent, reflecting the increased output of alumina, which outweighed a decline in crude bauxite production. Transport and Mining Minister, Hon. Robert Montague, says that mining continues to play an important role in the country’s economic growth and development. He noted that gross domestic product (GDP) for the July to September 2018 quarter grew by 1.8 per cent, bolstered by significant improvement in mining and quarrying.
Prime Minister, the Most Hon. Andrew Holness, says the recent meeting with President of the United States of America (USA), Donald Trump; and several Caribbean leaders provided a direct opportunity for the strengthening of bilateral and regional relationships.On Friday, March 22, 2019, the leaders of five Caribbean countries – The Bahamas, Dominican Republic, Haiti, Jamaica and St. Lucia – met with President Trump, in Florida. The meeting was initiated by the United States.Speaking in the House of Representatives on April 30, the Prime Minister said the meeting provided an opportunity for a different dialogue with leaders of the region and the President to explore ways of strengthening the bilateral and regional relationships and express and reaffirm the goodwill between the United States (US) and the region.The Prime Minister was replying to questions about the trip posed by Opposition Spokesperson on Foreign Affairs and Foreign Trade, Lisa Hanna.Mr. Holness said the context of the meeting was the wider Caribbean and not specific to CARICOM, adding that the invitation was extended on a bilateral basis; nevertheless, the meeting provided an opportunity to address issues relevant to CARICOM member states.The Prime Minister said the meeting with President Trump focused more on high-level discussions.“The President wanted to hear the leaders’ perspectives on a range of issues, including the current economic outlook from each country in attendance and for the region generally; areas in which the US could offer greater support; the situation in Venezuela; and the respective perspectives of the leaders who attended, on Cuba,” he said.Mr. Holness said specific concerns were raised by Caribbean leaders about the importance of tourism to the region and the extremely dampening effects that travel advisories and warnings had on visitor arrivals from the North American market.“The President took a particular interest in this matter and asked that it be looked into,” he said.He said a greater role for the Overseas Private Investment Corporation (OPIC) in the region was also discussed as a way to increase investment and support for strategic development imperatives of the region, particularly in energy and infrastructure.Mr. Holness pointed out that Jamaica is already working on a cooperation programme with the United States through the Treasury Department in this regard.He said all leaders present expressed concern over the situation in Venezuela and support for a peaceful and sustainable solution to return the country to a stable and democratic country.The Prime Minister informed that before the meeting with President Trump, the invited leaders had a working meeting with the US National Security Advisor, Ambassador John Bolton.He said detailed discussions were had on a range of subjects, including national security and protecting the maritime space of the region through greater support with assets and information sharing, disaster management and resilience building within the context of increased frequency and intensity of weather events, and an increased role in the region for the redefined OPIC.Also discussed were blacklisting, derisking and potential loss of correspondent banking services in Caribbean countries; extension of the Caribbean Basin Initiative (CBI); the Caribbean Basin Economic Recovery Act, which allows continued one-way duty-free access for Caribbean goods into the US market beyond 2019; energy security and stronger economic cooperation; and the situation in Venezuela.Meanwhile, the Prime Minister said Jamaica has not given any commitment to the USA that it will be a party to any activity to change the current government in Venezuela.He said on receiving the invitation, the Government reviewed the context of the proposed meeting and the invitation and concluded that the meeting was in keeping with the country’s policy objective to ensure Jamaica remains a relevant leader and influential voice in the region; and the meeting provided an opportunity for Jamaica to discuss its security and economic interest with its largest trading partner and security partner.“There was strong sentiment among regional leaders that the US had not been paying enough attention to the Caribbean as the third border of the United States,” he said. Prime Minister, the Most Hon. Andrew Holness, says the recent meeting with President of the United States of America (USA), Donald Trump; and several Caribbean leaders provided a direct opportunity for the strengthening of bilateral and regional relationships. On Friday, March 22, 2019, the leaders of five Caribbean countries – The Bahamas, Dominican Republic, Haiti, Jamaica and St. Lucia – met with President Trump, in Florida. The meeting was initiated by the United States. Speaking in the House of Representatives on April 30, the Prime Minister said the meeting provided an opportunity for a different dialogue with leaders of the region and the President to explore ways of strengthening the bilateral and regional relationships and express and reaffirm the goodwill between the United States (US) and the region. Story Highlights
zoom Wilhelmsen Ships Service (WSS) has strengthened its links to cruise industry owners and operators by becoming a member of the Cruise Lines Industry Association’s Global Executive Partner Program.WSS counts some of the world’s biggest cruise operators among its clients, providing port agency, safety and technical support services to 279 cruise ships on a global basis. Joining the CLIA Global Executive Partner Program as a member of the Technical and Supply Chain group will enable WSS to build closer links to cruise customers and access the latest thinking about how these services are evolving.Justin Scholl, Key Account Manager, WSS said: “Like other shipping sectors, the cruise market is confronting change in terms of the need for optimisation and efficiency, compliance with regulation and best practice. Controlling total cost of ownership over the lifetime of products and services is critical. WSS is uniquely placed to provide such solutions and this partnership enables our experts to work with decision makers within the cruise lines to achieve these goals.”Under the Global Executive Partner Program, WSS will support CLIA’s technical and regulatory expertise, while interacting with its team on issues and subjects impacting the industry where partners can provide input.WSS, March 11, 2014
zoom DP World Chairman HE Sultan Ahmed bin Sulayem has met with Algeria’s Minister of Transport HE Amar Ghoul to discuss DP World’s continued investment in Algeria.DP World was awarded the concession to operate the container terminal in the Port of Algiers, DP World Djazair, in 2008. DP World Djazair is a joint venture between DP World and the Algiers Port Authority (EPAL). DP World also operates DP World Djen-Djen to the east of the capital city.Since DP World Djazair was established, DP World has brought in new equipment and specialised training for its staff to improve efficiency and productivity, actively contributing to the continued expansion of the economic growth of Algeria.In January this year, further investment began, with DP World beginning a two year programme that will see further upgrades to the infrastructure at DP World Djazair with the introduction of modern container handling equipment, including state of the art ship-to-shore container handling cranes to service vessels and rubber tyred gantry (RTG) cranes for the container yard.The Algiers Port Authority has begun refurbishing the yard to prepare for the arrival of the new equipment, while DP World Djazair will rebuild the shipside berths to accommodate the container cranes, as well as repair three berths to improve efficiency, safety and security. HE Sultan Ahmed bin Sulayem, DP World Chairman, said:“By working closely with our partners in Algeria, and with the excellent support of our terminal staff, we have significantly improved services at DP World Djazair, which has helped improve the efficiency of the supply chain for Algerian importers and exporters. This in turn benefits the Algerian economy and the local community.”DP World has already implemented a programme to upgrade staff facilities and is creating a long term programme to train and develop staff at all levels. The company is also instituting performance incentive programmes that reward the workforce for higher performance throughout the terminal with a share in its profitability.DP World, May 5, 2014
Press Release, September 19, 2014 These new terminals will help facilitate a move to significantly reduce the industrial use of fuel oil and liquid petroleum gas (LPG) in Finland, the Ministry stated in a release.”The decrees to go ahead with these three operations will see more than EUR 200 million being invested into LNG terminals. This will then instigate the development of a network of terminals along the Finnish coastline,” said Minister of Economic Affairs Jan Vapaavuori after signing the decrees.”LNG offers an environmentally-friendly and carbon-free alternative fuel source for the shipping industry. It also enables us to create alternative procurement streams for industries that use gas. According to estimates, the market potential for the use of LNG by the shipping and other industries is particularly significant in the Satakunta region. Furthermore, a terminal in the Bay of Bothnia would make possible the use of LNG in all the harbours located in the Northern part of the Bay of Bothnia.”The combined employment effect of the three projects’ construction phases is estimated to be approximately 500 person years. Upon completion, the terminals and their associated logistics chains are hoped to lead to around 40 permanent jobs.The combined maximum operating capacity of the three terminals will be 450,000 tonnes, which equates to more than 6 terrawatt-hours a year. The three new terminals will also reduce annual CO2 emissions by approximately 370,000 tonnes and carbon emissions by 1,870 tonnes.In addition to the three projects currently under way, the Ministry of Employment and the Economy is also handling applications for investment support from Haminan Energia Oy, LNG Finland Oy, and Containerships Ltd Oy. A comprehensive decree on these three applications is intended to be issued in 2014.The large-scale regional LNG terminal planned for construction in Inkoo, Southern Finland, does not fall under the remit of the national aid programme. It is hoped that funding for this project can be secured from the European Commission’s list of Projects of Common Interest (PCI). zoom Computer rendering of the Tornio LNG TerminalFinland’s Ministry of Employment and the Economy has committed a total of EUR 65.2 million in energy subsidies for three liquefied natural gas (LNG) terminals. With the help of this support, Manga LNG Oy, Skangass Oy, and Oy Aga Ab will build LNG terminals in Tornio, Pori and Rauma respectively.
zoom Costa Rica’s Sintrajap dockers’ union has won a commitment from the country’s government to re-examine the future of the vital ports of Limon and Moin, along with a promise to cease police violence against strikers, the International Transport Workers’ Federation (ITF) reports.In response the union has reportedly agreed to put its 15 day strike – which has been supported by trade unions right across Costa Rica and by the ITF and its affiliates – on hold.The strike was in protest at a planned 33 year concession deal won by APM to run a new terminal, which the ITF says ”would effectively give the new operation a monopoly over all container ships – something that is contrary to Costa Rican law,” and that ”such a monopoly, which is still being challenged at the country’s supreme court of justice, would also endanger the future of the state-owned JAPDEVA port company.”ITF unions have backed Sintrajap and condemned the police storming of Puerto Limon’s Moin and Limon terminals on October 23. According to the ITF, the police raid helped galvanize public opinion in the country against the government’s plans. There has been civil unrest in the province of Limon where the population have been protesting against the creation of a monopoly and an increase in container fees that would create further inflation in the country.They have also demanded a clear development programme for Japdeva, whose income is used for infrastructure and services in what is one of the poorest provinces in the country – despite the fact 80 percent of all the international commerce of the country passes through its port.Paddy Crumlin, ITF president and chair of its dockers’ section,said: “This affair is a long way from over, but there’s been a first victory for legality and reason today. The government will have to return to the negotiating table rather than ignoring the nationwide objections to their plans for Puerto Limon. The negotiation process that now starts must be taken seriously by the government, and a proper, fair and positive agreement reached so as to end this conflict and ensure the viability of JAPDEVA. There are also guarantees of no reprisals against the dockers who have been defending this national resource. We hope that peace comes to the province on Limon and we recognise that the people of Costa Rica have shown themselves willing to defend their port and their future”Press Release
zoom Italian shipbuilder Fincantieri is going to build a second ultra-luxury ship for Seattle-based cruise line Seabourn Cruise Line.Namely, Seabourn has exercised option for the second vessel, which will be a sister ship to the newbuild announced earlier this year, scheduled for delivery in late 2016.The most recent newbuild is scheduled to join the company’s fleet in spring 2018.Giuseppe Bono, Fincantieri’s Chief Executive Officer, said: “When dealing with such important investments, exercising an option should never be taken for granted. We are very glad that Seabourn decided to “double” its trust in us, especially considering that our partnership is very young and getting stronger quickly. I believe that this clearly demonstrates that new clients as well as old, such as Seabourn’s parent company Carnival Corporation, and the market as a whole, consider Fincantieri as the world leader in the cutting-edge cruise shipbuilding sector including the ultra-luxury segment where our partner for this project operates”.The all-suite ship will be approximately 40,350 gross tons, 210 metres long and 28 metres wide and will be able to reach a cruising speed of 18.6 knots.It will carry up just 604 guests, accommodated in 302 suites, all with a private balcony.According to Fincantieri, one of the ship’s major strong points will be safety and environmental-friendliness as the vessel will integrate technological solutions that will enable it to exceed the requirements of the relevant regulations. In addition, fuel consumption will be significantly reduced also by optimizing the ship’s hydrodynamics.Richard D. Meadows, Seabourn’s President said: “These two new ships will offer the understated elegance we are known for, as well as new amenities, innovations and modern design features that embody the hallmarks of Seabourn.”Press Release
Monaco-based owner, operator and manager of liquefied natural gas carriers GasLog Ltd. has entered into an agreement with Methane Services Ltd., an affiliate of BG Group, to acquire two tri-fuel diesel electric LNG carriers for a cost of USD 460 million. The two vessels, Methane Becki Anne and Methane Julia Louise, will be chartered back to BG for periods of nine and eleven years with further options by the charterer to extend the term of the time charter for each vessel by either three or five years.The nine and eleven year charters add approximately USD 580 million of contracted revenue over the charter period and are expected to provide a combined annual EBITDA of approximately USD 46 million.Upon completion of the acquisition, the consolidated GasLog group will have total contracted revenues of approximately USD 3.3 billion.The two vessels were built at Samsung Heavy Industries and delivered in 2010. GasLog supervised their construction and has technically managed both ships since delivery. They have TFDE propulsion, a cargo capacity of 170,000 cubic meters and have on-board reliquefaction plants, which enable reduced consumption of natural gas at lower speeds.In connection with the transaction, GasLog has obtained commitments from DNB Bank ASA, for a USD 325 million secured credit facility and a USD 135 million subordinated two-year loan facility at rates in line with recent GasLog financings.Paul Wogan, CEO of GasLog, said: “This is the third accretive transaction we have been fortunate enough to enter into with BG Group in 2014. The acquisition of these two latest modern LNG ships is a great start to the 40:17 strategy put forward at our recent investor conference. These ships will be added to the Gaslog Partners drop down pipeline, extending the built-in growth for longer. Including this transaction, we will have added twelve ships to the GasLog fleet in 2014.”GasLog expects the transaction to close in the first quarter of 2015. The charter commencement is expected to take place at the same time.
Danish product tanker owner Nordic Shipholding A/S made a profit of USD 2.3 million in 2014 due to improved earnings and a one-off gain of USD 5.2 million arising from the reversal of impairment loss on Nordic Anne previously recognised, which was slightly above expectations, the company said. Excluding this gain, the group incurred a net loss of USD 2.8 million for 2014.Within its restructuring process completed on 19 December 2013, all the the company’s 6 vessels were transferred to separate wholly-owned legal entities in Singapore. At the same time, the change of technical managers for all the vessels was also completed with two new technical managers, each managing 3 vessels.Gross revenue earned by the 6 vessels in 2014 reached USD 50.1 million, which resulted in a TCE revenue of USD 27.1 million and an EBITDA of USD 6.8 million.For 2015, the group said it expected to post a modest profit arising mainly from the operations of the 6 vessels.In addition, Nordic plans to keep 5 of its 6 vessels commercially deployed on a pool basis. One vessel is time-chartered under a minimum 3-year time-charter arrangement.As rates in 2015 are forecasted to improve compared to 2014, the TCE revenue from the 5 product tankers in the pool and the time charter income from Nordic Anne are expected to be in the region of USD 29.0 — USD 32.0 million, Nordic said.Nordic expects EBITDA (earnings before interest, tax, depreciation and amortisation) to be in the range of USD 13.0 — USD 16.0 million.
zoom US Port of Oakland has been hit by a new round of work stoppages as the International Longshore and Warehouse Union (ILWU) representatives declined to dispatch workers over the weekend causing a shutdown of terminal operations at the port.Namely, as informed by the Pacific Maritime Association (PMA), ILWU Local 34 officials refused to dispatch workers for the second shift on Sunday, despite reaching a new agreement in the protracted 2014 negotiations with PMA on a dispatch procedure for Sunday and holiday operations at the port.The ILWU’s work stoppage occurred after the PMA informed Local 34 officials on Wednesday, May 27, that the new dispatch process would be put in place beginning with the second shift on Sunday, May 31, PMA added.Its implementation was initially scheduled for the prior weekend but was postponed to the 31st by mutual agreement so as not to complicate dispatch during the Memorial Day weekend.After the ILWU’s move on Sunday, the PMA took the matter to an area arbitrator who ruled that ILWU officials and dispatchers took a unilateral action in violation of the agreement with PMA.The arbitrator further instructed the ILWU to accept and dispatch employers’ labor orders. The arbitrator also ruled that the ILWU reneged on an agreement to work around the dispute.“This is the third work stoppage caused by the ILWU in Oakland in just over a week. By sanctioning illegal work stoppages, the local ILWU leaders are not just violating the new contract, but are disrespecting the truckers, local residents and small businesses whose livelihoods depend on the efficient and reliable movement of cargo through the port,” PMA said in a statement. “We have a new coastwise contract in place that was recently ratified by both parties, a new understanding in Oakland on dispatch and an arbitrator’s ruling finding the ILWU in violation of that new understanding. It’s time for the ILWU leaders in Oakland to recognize these facts, follow the provisions of the new agreement and join us in regaining the shipping community’s confidence in West Coast ports,” said PMA spokesperson Wade Gates.The PMA reports that labor orders were properly processed for the first shift on Monday, and operations at the Port of Oakland are currently normal.
zoom Korean shipbuilding company Samsung Heavy Industries (SHI) has been hit with a drillship cancellation by floating-rig drilling contractor Pacific Drilling S.A.The decision stems from the SHI’s failure to timely deliver ultra-deepwater drillship Pacific Zonda, the company said.“Pacific Drilling has exercised its right to rescind the construction contract for ultra-deepwater drillship Pacific Zonda due to the failure by SHI to deliver a vessel that substantially meets the criteria required for completion of the vessel in accordance with the construction contract and its specifications,” the company said.“Pacific Drilling made advance payments totaling approximately $181.1 million under the contract, and will be seeking a refund of the installment payments.”The Pacific Zonda is an upgraded Dual Load Path Samsung 12,000 design dynamically-positioned Dual Gradient capable drillship able to operate in moderate environments and water depths up to 3,657 m (12,000 ft) using 18¾” BOP and 21” OD marine drilling riser.Pacific Drilling operates a fleet of seven drillships.
zoom The Andrews Labor Government has adopted legislation to enable the lease of the Port of Melbourne’s largest container shipping terminal after several bumps on the road hit over the past year. The legislation entitled the Delivering Victorian Infrastructure (Port of Melbourne Lease Transaction) Bill 2015, was passed by the Victorian Parliament on Thursday, the government said.The lease proceeds set at $6 billion, to be paid up front, will go into the Victorian Transport Fund (VTF), which is planned to use the money to support key infrastructure initiatives throughout Victoria.A new $200 million Agriculture Infrastructure and Jobs Fund are also to be established.“The Labor Government has negotiated in good faith to reach agreement on a Bill that delivers a strong offering to the market and a positive economic benefit for all Victorians,” the government’s statement reads.“We promised that a Labor Government would lease the Port of Melbourne and use the proceeds to build key infrastructure, like removing our 50 worst level crossings. We’re keeping our word and getting on with it.”“This is a great outcome for Victorians and a great result for its regions, with key transport initiatives across the State to provide a boost to the economy, which is good news for jobs,” Treasurer Tim Pallas said.The passing of the bill comes following the opposition from the Liberal-National coalition, which said last year that it would not support the sale in the upper house and would recommend the proposal to be referred to a parliamentary inquiry.With the legislation now passed, the lease transaction’s Joint Financial Advisers, Morgan Stanley and Flagstaff, will soon call for Expressions of Interest from the market on behalf of the state.The bidding race is expected to include Hastings Funds Management, IFM Investors, QIC Ltd and partners.
zoom Hong Kong-based Unique Shipping Group has christened its new 84,000 LPG carrier, Oriental Jubilee, in Ulsan, South Korea. The 225-meter Oriental Jubilee was built by Hyundai Heavy Industries (HHI). Prior to the delivery, the vessel made its maiden voyage to the Persian Gulf in mid-June.The next LPG carrier in the series is slated for delivery in September 2017.Oriental Jubilee is the first vessel to be awarded the DNV GL Scrubber Ready notation.The vessel has been prepared for the installation of a hybrid scrubber system based on an existing design and technology. The unit can also be connected with multiple exhaust gas inlets from the ships’ main engine, three diesel engines and the boiler, DNV GL said.“The system was chosen because of its operating flexibility. It enables wash water to be discharged into the sea in open loop mode, but also includes a liquid recirculation system in order to operate in closed loop mode. This is important if you operate in fresh water or low-alkalinity areas, as well as in areas, where discharging wash water is prohibited,” Swee Yin Wong, Senior Surveyor at DNV GL’s Ulsan station in Korea, said.Established in 1966 as a private shipowning and management operation, Unique Shipping has now been developed into a medium-size shipping group in the Asia Pacific region. Its fleet consists of 14 vessels, including one Capesize bulk carrier, four product oil tankers, three product/chemical tankers, and six LPG carriers.
zoom Proxy advisory firms of Tanker Investments Ltd (TIL) and Teekay Tankers have recommended that the shareholders of the two companies vote for the merger the two tanker majors announced in June this year.Specifically, Institutional Shareholder Services Inc. (ISS) and Glass, Lewis & Co. advised Teekay Tankers to move ahead with the merger plan with TIL. ISS has also advised TIL’s shareholders to support the merger, as it would create one of the world’s largest mid-size tanker companies, with a 62-vessel fleet and combined total assets of USD 2.4 billion.The two companies have scheduled their respective shareholders’ special meetings for November 17.“We believe the merger offers compelling strategic and financial benefits, including expected immediate accretion to earnings, strengthening of our balance sheet and increase in liquidity and an en bloc fleet acquisition at the right point in the tanker cycle when market fundamentals show signs of improvement,” Kevin Mackay, Teekay Tankers’ President and Chief Executive Officer said.Commenting on the advice, William Hung, TIL’s Chief Executive Officer, said the merger includes the opportunity to remain invested in the tanker space as part of a larger company with over 40 years of experience.“In addition, the combined entity is expected to have a stronger balance sheet and increased liquidity, increased equity trading liquidity and a dividend policy based largely on the strength of underlying tanker rates,” he added.The CEOs and Boards of Directors of the two tanker companies encouraged all shareholders to vote in favor of the deal.Teekay said that it has also already secured support for the merger with TIL from Teekay Tankers’ two largest shareholders, Teekay Corporation and Huber Capital Management LLC.Teekay Tankers currently owns a fleet of 35 double-hull tankers, including 16 Suezmax tankers, 12 Aframax tankers, and seven Long Range 2 product tankers, and has four capital leased Suezmax tankers and one VLCC through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a ship-to-ship transfer business and a minority interest of over 11 percent in TIL, which owns a fleet of 18 tankers.
zoomIllustration. Image Courtesy: Pixabay under CC0 Creative Commons license Hong Kong-listed port operator COSCO Shipping Ports has signed an official agreement with PSA Corporation Limited (PSA) for the addition of two new berths at the COSCO-PSA Terminal (CPT) in Singapore.The final documents were signed following a Memorandum of Understanding (MoU) inked in November 2018.The two new berths have commenced official operation from January 1, 2019 and enabled the terminal to equip with five mega-vessel berths, increasing its annual handling capacity from previously 3 million TEUs to about 5 million TEUs.The new berths are supported by automated yard technology at Pasir Panjang Terminals, allowing for more efficient berthing arrangements, and enabling the terminal to increase productivity and greatly enhance its service capability.COSCO Shipping Ports said that the new berths support the needs of COSCO Shipping Group to accommodate mega-vessels and mega-alliances in the shipping industry.The terminal was established in 2003, as a joint venture between COSCO Shipping Ports and PSA. In 2017, CPT moved from its two-berth terminal to three mega berths, before bringing its berth tally to a total of five mega berths at PSA’s Pasir Panjang Terminal (PPT) 5 and 6.
zoomIllustration of the new Havila Kystruten ships; Image Courtesy: Havyard Canadian manufacturer of energy storage systems Corvus Energy has signed a contract with Norwegian Electric Systems (NES) for the marine world’s largest battery package for hybrid-powered vessels.As informed, the technology will be installed onboard Havila Kystruten’s environmentally-friendly coastal vessels.“This is a big step for the cruising industry and we are extremely proud to receive this order… The Energy Storage System (ESS) is the world’s largest package ever delivered to a ship and will enable the vessels to enter fjords and ECAs on zero emission mode five years before the deadline,” Geir Bjørkeli, CEO of Corvus Energy, said.Corvus Energy will deliver an air-cooled ESS with Corvus’ patented single-cell thermal isolation which exceeds class requirements.“The Energy Storage System has a capacity per vessel of 6,100 kWh, which is double the capacity of any existing battery-operated vessel,” Roger Rosvold, Vice President Sales at Corvus Energy, explained. “The unused potential for using batteries on board cruise and passenger ferries is huge. Batteries reduce fuel consumption and maintenance costs, cut pollution and, with increasing environmental regulations and requirements that will incur costs for air emissions, provide a very compelling business case.”“As more and more shipowners wake up to this, we expect to see uptake accelerating across the board. The industry is just starting to understand the power of batteries,” Rosvold further said.The newbuilds are part of Havila’s contract with Norwegian Ministry of Transport for the construction of four environmentally-friendly vessels that will operate on the Bergen-Kirkenes coastal route.Two of the vessels will be built by Turkish shipbuilder Tersan and the remaining by Spanish Barreras. Featuring a length of 125 meters and a width of 20 meters, the ships will be able to accommodate 700 passengers.The vessels will have a hybrid gas-electric propulsion system with battery, where four gas-powered engines in each vessel run the generators. The system is also adapted to the next generation of technology, using hydrogen fuel cells.The equipment from Corvus Energy is scheduled for delivery in 2020 and the coastal route vessels will be in service from 2021.