Mercator Lines (Singapore) acquires first vessel

A subsidiary of India’s Mercator Lines Limited has signed an $65.5m agreement with Tanagra Shipping to purchase a 69,221dwt geared Panamax dry bulk carrier, “YK Titan”.

The vessel, currently hired on a time charter basis by Mercator Lines (Singapore) Limited (MLS), is the first vessel acquired by the company since its IPO listing in Singapore on December 14, 2007 and is scheduled for delivery around Jul/Aug’08.
“Our special selection of geared vessels provides us with a distinct versatility that enhances trading flexibility at the ports of the Indian Sub-Continent where port facilities remain underdeveloped,” says Shalabh Mittal, MLS md and ceo. “Mercator has the largest fleet of geared Panamaxes amongst the Indian-owned shipping companies, hence providing us with a strong competitive edge in the Indian markets.” The acquisition of YK Titan will expand MLS’ owned fleet to eight ships comprising four gearless Panamax and Kamsarmax ships and four geared Panamaxes. MLS has also recently agreed to charter out another 92,500dwt gearless Post-Panamax vessel to COSCO (H.K.) Shipping subsidiary, Refined Success Ltd. The Post-Panamax vessel will be chartered to RSL for a period of approximately 35 to 37 months, at a fixed daily rate of $39,500, beginning anytime between May 01 - September 30, 2009.

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Philippines to ban single hulled tankers from May

The Philippines is said to be poised to enforce a ban on single hulled tankers calling at its ports.

Beginning May 1, the country will join the likes of South Korea, which has set a 2010 deadline on single hulled vessels hoping to call at its ports. Additionally, it is rumored that China will also tighten port entry regulations on single hulled vessels in the next two years. The moves to restrict the use of such vessels in and around Asian ports is in line with International Maritime Organization's (IMO) ongoing rules to phase-out all single hull tankers by 2010 - although the vessels may be operated up to 2015 provided they meet a certain set of conditions. Although the US and European Union have earmarked 2010 for all vessels to comply with the double hull requirement, a number of major Asian maritime countries have allowed such ships to operate in their territorial waters until as far as 2015 - a key factor, as most single hull vessels are engaged in Asian trades. However, environmental concerns have been exacerbated by the recent oil spill involving an single hulled tanker off the coast of South Korea late in 2007, have led the South Korean government to insist on double hulled tankers for more than 55% of annual imports of crude oil in 2008, and more than 60% in 2009. It is likely that the government will enforce the 2010 to reject port entries by all non compliant vessels. The Philippine measure will be a step ahead of South Korea, banning port entry of every single hull tanker starting May.

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US calls for bids to raise SPR

The US Energy Department said that it will solicit bids from producer to exchange up to 13 million barrels of royalty-in-kind oil drilled from federal leases in the Gulf of Mexico for other oil that would go into the US Strategic Petroleum Reserve.

Bids are due by 13 May. Actual oil volumes delivered to the reserve will take into account adjustments for transport costs and the quality differences of the crude, the department said. The oil would be delivered to the emergency stockpile at a rate of 76,000 barrels per day beginning in August and continue until December. Many US lawmakers and energy experts have called on the department to suspend deliveries to the stockpile, arguing that taking supplies off the market helps to keep crude and gasoline prices high. Current reserve stockpiles stand at a record 701 million barrels and is in the process of expanding the oil reserve to 1 billion barrels, as mandated by Congress. The reserve was created by Congress in response to the 1973-74 Arab oil embargo. The SPR is stored in underground salt caverns at four sites in Texas and Louisiana.
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US calls for bids to raise SPR

The US Energy Department said that it will solicit bids from producer to exchange up to 13 million barrels of royalty-in-kind oil drilled from federal leases in the Gulf of Mexico for other oil that would go into the US Strategic Petroleum Reserve.

Bids are due by 13 May. Actual oil volumes delivered to the reserve will take into account adjustments for transport costs and the quality differences of the crude, the department said. The oil would be delivered to the emergency stockpile at a rate of 76,000 barrels per day beginning in August and continue until December. Many US lawmakers and energy experts have called on the department to suspend deliveries to the stockpile, arguing that taking supplies off the market helps to keep crude and gasoline prices high. Current reserve stockpiles stand at a record 701 million barrels and is in the process of expanding the oil reserve to 1 billion barrels, as mandated by Congress. The reserve was created by Congress in response to the 1973-74 Arab oil embargo. The SPR is stored in underground salt caverns at four sites in Texas and Louisiana.

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L&T to start work on its integrated shipyard soon

Larsen and Toubro hopes to shortly begin work on the integrated shipbuilding yard and port at Ennore, north of Chennai.

Construction will begin once earmarking of land for the project is over. Its proposal for this project got the Tamil Nadu Government's approval in January 2008 and the company is now discussing the agreement it will sign with the Government for the project. The project's cost has been estimated at R3,060 crore (US$766 billion) with the equity component being put at Rs1,100 crore (US$275 billion). The Tamil Nadu Industrial Development Corporation, a State Government industrial promotion agency, will hold a three percent equity stake in the venture. The process of earmarking the 1,200 acres of land for the project is on and once that is finished construction work will start, according to the sources. The project is expected to take 24 months for completion. L&T plans to build large-sized ships, including very large crude carriers (250,000 tonnes and more) at the shipbuilding yard. It is expected that the company will also make vessels for defence purposes. L&T had initially proposed only a shipyard but decided to go in for an integrated port because of the cost and the breakwater construction work involved. The cost could then be shared between the port and the shipyard.

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MASTECH 2008 - International Maritime Conference by MAST

Middle-east Alumni of Ship Technology an alumni association of Naval Architects graduated from Department of Ship Technology, Cochin University of Science and Technology is organizing their first international Maritime conference named as MASTECH 2008.

The conference will be held at Crown Plaza Hotel Dubai on 12 and 13 November 2008. The MAST alumni association is working in the UAE since 1980’s and has over 150 members working in various positions in UAE marine industry. MAST has excellent knowledge and penetration in the Middle East marine industry. MASTECH 2008 will be an excellent opportunity to hear from leading industry and technical experts worldwide. The two-day conference provides an unrivalled environment to exchange information, showcase the latest technical innovations, explore collaborations, highlight business opportunities and take stock of trends and issues at the heart of future strategies. There will be 24 speakers over the two days of keynote addresses, commercial and technical presentations, poster sessions and panel debates in four sessions. The four sessions designed to focus on separate topics related to ship design, new construction and ship repair, marine engineering and offshore engineering. MAST is expecting more than 250 international delegates for the conference. There will be an exhibition to focus on the advanced engineering and design innovations in shipbuilding during the conference. MAST also intends to organize an award night to recognize individuals and establishment for techno maritime achievements. The conference is supported by Biztv events and Marine Biz TV will telecast it globally.

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