Singapore: Sembcorp Marine reports that the Court of Appeal has dismissed BNP Paribas’ appeal against the decision of the High Court which prevented the French bank from filing a winding up application against its subsidiary Jurong Shipyard.
BNP Paribas was also ordered to pay costs to Jurong Shipyard. The Court of Appeal decided that in a case where a solvent company disputes a debt and is prepared to offer security to defend the claim, the Court should not allow a party in the position of BNP Paribas to file a winding up application to force Jurong Shipyard to pay, according to Sembcorp. To recap, last November it was revealed that Jurong Shipyard had racked up massive losses, believed to total more than $300m, when alleged unauthorised currency trades made by its former finance director went bad. Agreement on settlement terms was reached with nearly all the 11 banks concerned but BNP filed a winding-up petition against Jurong in a bid to recover the $50.7 million it said it had lost. That petition was turned down in June, a decision BNP subsequently appealed. Jurong Shipyard welcomes the decision of the Court of Appeal on the grounds that "facts relating to the unauthorised (currency) transactions will now see the light of day in a full trial". It says it will, as it had offered to do a year ago, put up security for BNP Paribas’ original claim of US$50.7 million. BNP Paribas has 12 weeks to commence an action against Jurong Shipyard, failing which the Court of Appeal has ordered that the security would be cancelled and returned to Jurong Shipyard.
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Sunday, November 16, 2008
Piraeus Port concession agreement soon to be signed
After months of turbulences and dockworkers’ reactions, the concession agreement regarding the container terminal of Piraeus port is expected to be signed on November the 25th.
The latest development was the approval of the terms of the agreement by the Court of Audit, giving Cosco Pacific and the Port Authority of Piraeus (OLP) the green light to move ahead with the deal. Should there be no other hurdles, the agreement will be signed when Chinese President Hu Jintao is scheduled to perform an official visit in Hellas later this month. He will be accompanied – among others – by Cosco’s President and CEO, Capt. Wei Jiafu. Nevertheless, dockworkers aren’t going to give that easily. They have asked legal advisors to give them their opinion on whether the agreement can be overruled Under the terms of the deal, OLP will receive more than a fifth of revenues from a new cargo handling company to be run by China's Cosco, worth an estimated 3 billion euros over 35 years. Cosco will upgrade and run cargo port facilities for up to 35 years, while rental costs would push the guaranteed amount of the transaction to 3.4 billion euros. "OLP will receive 21 percent of the new company's revenues for the first eight years and about 25 percent in the next years," the company said earlier in a statement. OLP, which expects to make a loss this year due to labour action by dock workers, has said the deal will return it to profit once Cosco enters Piraeus in 2009. Cosco is expected to pay OLP an initial 50 million euros in 2008. Among other terms, the contract sets a 2015 deadline for Cosco, the world's fifth largest port operator, to complete the construction of one pier. If Cosco fails to meet the deadline, it has agreed to refund 112 million euros to OLP.
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The latest development was the approval of the terms of the agreement by the Court of Audit, giving Cosco Pacific and the Port Authority of Piraeus (OLP) the green light to move ahead with the deal. Should there be no other hurdles, the agreement will be signed when Chinese President Hu Jintao is scheduled to perform an official visit in Hellas later this month. He will be accompanied – among others – by Cosco’s President and CEO, Capt. Wei Jiafu. Nevertheless, dockworkers aren’t going to give that easily. They have asked legal advisors to give them their opinion on whether the agreement can be overruled Under the terms of the deal, OLP will receive more than a fifth of revenues from a new cargo handling company to be run by China's Cosco, worth an estimated 3 billion euros over 35 years. Cosco will upgrade and run cargo port facilities for up to 35 years, while rental costs would push the guaranteed amount of the transaction to 3.4 billion euros. "OLP will receive 21 percent of the new company's revenues for the first eight years and about 25 percent in the next years," the company said earlier in a statement. OLP, which expects to make a loss this year due to labour action by dock workers, has said the deal will return it to profit once Cosco enters Piraeus in 2009. Cosco is expected to pay OLP an initial 50 million euros in 2008. Among other terms, the contract sets a 2015 deadline for Cosco, the world's fifth largest port operator, to complete the construction of one pier. If Cosco fails to meet the deadline, it has agreed to refund 112 million euros to OLP.
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Oil Tanker Demand Lifted by Unwanted Crude Storage
Oil tanker demand is being buoyed by traders seeking to store unwanted crude, potentially bolstering hire rates that have plunged 71 percent since July.
Frontline Ltd., the largest owner of supertankers, got about 10 enquiries from oil companies seeking vessels for storage this week, Jens Martin Jensen, interim chief executive officer of the management unit, said by phone today. Royal Dutch Shell Plc, Europe's largest oil company, booked the carrier Leander, Paris- based shipbroker Barry Rogliano Salles said this week. Iran, the second-largest member of the Organization of Petroleum Exporting Countries, idled as many as 15 of its biggest ships in May to store crude. That contributed to three consecutive months of higher rental rates. "That's definitely positive for the market,'' Anders Karlsen, an Oslo-based analyst at Nordea Securities who recommends investors buy Frontline shares, said by phone. “It will have the same impact as last time; it doesn't matter if they are in Iran or wherever.” Demand for tankers as storage “encouraged bidding'' in tanker derivative contracts betting on the future cost of shipping oil, said Ben Goggin, a broker of the contracts at SSY Futures Ltd., a unit of the world's second-largest shipbroker. Oil prices have plunged 61 percent since reaching a record price of $147.27 a barrel in July as slower global economic growth sapped demand. The International Monetary Fund last week warned of the first simultaneous recession in the U.S., Japan and Europe in more than 60 years.
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Frontline Ltd., the largest owner of supertankers, got about 10 enquiries from oil companies seeking vessels for storage this week, Jens Martin Jensen, interim chief executive officer of the management unit, said by phone today. Royal Dutch Shell Plc, Europe's largest oil company, booked the carrier Leander, Paris- based shipbroker Barry Rogliano Salles said this week. Iran, the second-largest member of the Organization of Petroleum Exporting Countries, idled as many as 15 of its biggest ships in May to store crude. That contributed to three consecutive months of higher rental rates. "That's definitely positive for the market,'' Anders Karlsen, an Oslo-based analyst at Nordea Securities who recommends investors buy Frontline shares, said by phone. “It will have the same impact as last time; it doesn't matter if they are in Iran or wherever.” Demand for tankers as storage “encouraged bidding'' in tanker derivative contracts betting on the future cost of shipping oil, said Ben Goggin, a broker of the contracts at SSY Futures Ltd., a unit of the world's second-largest shipbroker. Oil prices have plunged 61 percent since reaching a record price of $147.27 a barrel in July as slower global economic growth sapped demand. The International Monetary Fund last week warned of the first simultaneous recession in the U.S., Japan and Europe in more than 60 years.
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China's port throughput growth weakens in October
Recently reported statistics suggest China’s port cargo throughput was expected to have reached 470 million tonnes in October, up six percent year-on-year, a 2.1 percent smaller figure compared with September.
October container throughput was expected to be 10.65 million TEU, up 8.2 percent year-on-year, an eight percent drop compared with last year’s growth over the same period. Iron ore imports are expected to have reached 38.5 million tonnes, up 16.5 percent year-on-year, reflecting the lowest growth level this year. Coal shipments are expected to be 38 million tonnes, a 3.1 percent decline year-on-year, of which 35.9 million tonnes was domestic trade, rising 2.8 percent year-on-year, and 2.1 million for foreign trade, dropping 51 percent. Crude oil imports are expected to be 13.55 billion tonnes, rising 4.2 percent, and that is expected to decline within the last two months of the year.
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October container throughput was expected to be 10.65 million TEU, up 8.2 percent year-on-year, an eight percent drop compared with last year’s growth over the same period. Iron ore imports are expected to have reached 38.5 million tonnes, up 16.5 percent year-on-year, reflecting the lowest growth level this year. Coal shipments are expected to be 38 million tonnes, a 3.1 percent decline year-on-year, of which 35.9 million tonnes was domestic trade, rising 2.8 percent year-on-year, and 2.1 million for foreign trade, dropping 51 percent. Crude oil imports are expected to be 13.55 billion tonnes, rising 4.2 percent, and that is expected to decline within the last two months of the year.
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