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Russian update
world Bunkering Autumn 2013 55
Russia in WTO: lots of questions, few answers olga bogacheva asks russian bunker industry expert Alexander Goloviznin about the implications of world Trade organization (wTo) membership
Everybody who has worked in the emerging russian bunkering market knows Alexander Goloviznin. he was the general director of Baltic Bunkering
Company, St Petersburg’s leading bunkering supplier, from 1999 to 2005. Then from 2006 to 2012 Alexander was a deputy general director responsible for development of port services at Ust-Luga. Now he is generally recognised as one of russia’s top shipping industry experts. Currently he is director of logistics and analysis at Sea Construction and Technologies (Morstroytechnology), an engineering company specialising in research and development in the sea transport field.
I asked him about the challenges russian businesses face due to their country’s integration into world economy.
ob: recently russia became a full wTo
member. It took 18 years to join wTo,
but I believe some unexpected issues
have arisen. How does wTo membership
affect the transport industry? what
trends have appeared and what can
russian businessmen expect? AG: A lot of problems have arisen. Unfortunately far fewer answer have been found so far. But it seems clear that russian railway will suffer significantly from competition. This is closely connected with logistics and access to
railway infrastructure provided to foreign transport companies.
European companies are far ahead of russian companies in logistic technologies. It’s a challenge for russian transporters to reach the same level. russian railways oAo (rrw) has a monopoly in our country. It means that its performance may appear poor compared to that of foreign companies.
As to inland water ways and the shipping industry, I think the situation won’t change drastically. why am I so sure? working for Morstroytechnology I’m able to see the whole picture. we explore various models and produce forecast of transhipping prices, sea and river freight costs and railway tariffs for large exporters, offer logistics for imported cargo constantly. A lot of our clients use combined logistic schemes like railway-river, railway-port or river-sea. we always assess infrastructure adjacent to sea and river ports as well as at a far distance from the manufacturing facilities. we use all methods available in our estimates, including netbacks, to feel all price and transport fluctuations in cargo traffic. our scenarios allow making a long-term forecast.
ob: How will rrw tariff policy change?
AG: wTo membership should equalise tariffs for russian and foreign companies. It will be a long and complicated process.
Firstly, tariffs should be differentiated with respect to cargo types and then equated. recently Federal Tariff Service (FTS) issued a new order “on Price ranges” deregulating tariffs for railway customers within the framework of transport reform and decrease of state financing of the industry. This document mainly targets at expensive cargo, particularly oil. It seems FTS tries to arrange transport business relations basing on a tariff formula. The formula will be based on oil price. Professionals in the bunkering and oil industries are worried and expect expenses to grow.
ob: will these trends influence russian
oil exports?
AG: Nothing has happened at the moment. however, rrw may change (increase) tariffs. The company may work out a feasibility study and submit it to FTS for approval. we expect multiple changes here and warn all businesses about likelihood of high volatility in the transport market. our research and analysis showed that terminals and river carriers always derive their prices basing on railway tariffs. Changes of this main component will cause volatility in other related sectors and industries.
ob: could the same happen to in
container transport?
AG: Definitely. Policy embedded in the
WB Autumn 2013 book.indb 55 05/08/2013 15:11
Russian update
56 world Bunkering Autumn 2013
new order is specifically aimed to decrease transit and thus improve competitive ability of the sector. Containers are also expensive and cargoes bound for busy destinations. They overload railway infrastructure.
ob: How are these changes connected
with tariff unification stipulated in
treaty with wTo in 2013?AG: In our opinion, the new order is just a warm-up before tariff increases for all bulk cargo. oil and oil products constitute 25%of all railway cargo traffic. The latter figure reflects volume. Based on transportation prices their share reaches 40%, by my calculation. Now, once total service prices for bulk cargo transport has grown, tariff equalisation towards sea ports and in-land transportation will be less painful.
It surely will happen in 2013. Price equalisation which has already occurred within the Common Economic Space in January 2013 was a significant step to this goal. we have already noticed sharp tariff changes for transportation of
vacuum gasoil. Fluctuations of 14-28% in both directions compared to 2012 have occurred. This factor will definitely affect the export market.
ob: what are the main trends in port
services in russia?
AG: Port business activities are increasing. Not as rapidly as we would probably wish, but the world economy has been in crisis for the last five years.
however, exports and imports are also growing and I see this clearly by looking at our order portfolio. Morstroytechnology develops new projects at various design stages. The most significant recent ones are the Vanino port development and a new artificial island for oil and gas production in the Gulf of ob.
ob: Are you monitoring
situations in the russian
bunkering market? what do
you see?AG: It seems that the main changes are connected with the growing requirement on
fuel quality. These requirements are the subject of intense discussion among the oil companies and other bunker market players.
ob: what are the main trends in port
services in russia?
Port business activities are increasing. Not as rapidly as we would probably wish, but the world economy has been in crisis for the last five years.
however, exports and imports are also growing and I see this clearly by looking at our order portfolio. Morstroytechnology develops new projects at various design stages. The most significant recent ones are the Vanino port development and a new artificial island for oil and gas production in the Gulf of ob.
ob: Are you monitoring
situations in the russian
bunkering market? what do
you see?
It seems that the main changes are connected with the growing requirement on
AlexanderGoloviznin
Comment
8
Maritime Security International Summer 2012
At a recent maritime security seminar in the UK, it was noted that there
appeared a lack of strategy to the maritime security of key international
sea trading lanes writes Paul Gibbins
Flag follows trade
W here ‘flag should follow trade’, the recent spate of piracy
off the Horn of Africa (HOA) has shattered any belief
that trade can continue irrespective of a coastal state’s
instability and the international community has struggled to
safeguard sea lanes. nowhere is the lack of any coherent maritime security strategy more
prevalent than in the gulf of guinea (gog) and for a region continuing to
provide highly prized resources to the international Community, there is
a clear need to formulate and agree upon a comprehensive approach to
counter the rise of maritime criminal activity affecting the area.
it is curious that a state of equilibrium has come about in countering
piracy off east Africa. Attacks for 2012 are down in the indian ocean
area and in a recent report by the international maritime bureau (imb) it
was stated that “overall, 177 incidents were reported to the imb Piracy
reporting Centre (PrC) in the first six months of 2012, compared to 266
incidents for the corresponding period in 2011.” Potengal mukundan,
the director for the imb said, “the naval actions play an essential role
in frustrating the pirates. there is no alternative to their continued
presence. the effective deployment of best management Practices, ship
hardening and, in particular, the increased use of Privately Contracted
Armed Security Personnel (PCASP), has also contributed to the falling
numbers.”
the shipping industry is enjoying some semblance of normality in one
ocean whilst experiencing the surge of a similar problem on the other
side of the continent.maritime criminal activity in the gulf of guinea is
on the increase, with 32 incidents reported so far for 2012, including five
hijackings. this compared to 25 incidents for the whole of 2011 gives
clear cause for concern.Ship-owners are understandably anxious, their crews far more so, where
the “smash and grab” robbery is violent, pernicious and extremely
traumatic.there are many contributory factors affecting the maritime
criminal activity in the gulf, but just like occurrences of piracy over the
years, its origins lie onshore where poverty, unemployment, corruption
and free access to weapons give cause to launch attacks on commercial
vessels offshore. As witnessed in the indian ocean, it is a supreme challenge to gain
consensus between affected nations towards a comprehensive
approach in maintaining maritime security. to their credit, international
navies have made an impact, but they can’t be everywhere and in an
area the size of the indian ocean, the private sector has risen to the
challenge of maintaining maritime security where the public sector falls
short. Conversely, across the gulf of guinea, there are 10 nations trying
to enforce some maritime security of their economic and territorial
waters with varying public sector capability. For example, in nigeria, the
nigerian maritime Administration and Safety Agency (nimASA), tasked
with the statutory responsibility of providing security on the nation’s
coastal waters, is working reasonably well in the littoral, but simply
nudging the problem further offshore and in some cases into bordering
nation’s waters, such as benin. the international community, keen to
maintain safe sea lanes has provided welcome assistance towards
capacity building projects such as the force generation of coast guard
vessels, but until the incentives to put to sea is addressed, any measure
offshore is punitive at best. MSI book.indb 8
21/08/2012 15:41
POLICY & FORUMSCorporate viewpoint4
Standfirst
QuTiatiasp eribustiur? Dunt a quibus niam,
ad qui sa veliatur sam eos eatur, qui dia
quatio debit, quisit,
Contact details
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Logo
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Maritime Security International Summer 2012
As Germany’s leading maritime security services provider, ISN International
Security Network meets clients’
needs with the highest standards
“The time is right to set some binding
standards as more PMSCs operate with
unqualified personnel”
Setting the highest standards of securityIn a divided market, making the dif-ference is of the utmost importance – something ISN fully understands. As a security services provider based in Germany, ISN has been providing armed security services to shipping companies by accompanying container and cargo ships travelling in the high-risk piracy areas off the East and West African coasts and in the Indian Ocean.As the UK’s industry partner for the regulation and accreditation of private security providers, ADS is to introduce a set of standards for the provision of pri-vate security, both on land and at sea. The same process has been initiated by the German government which is work-ing on regulations for vessels sailing under the German flag. The time is right to set some binding standards as more and more PMSCs operate with unqualified personnel and/or illegal weapons. A market shake-up is inevitable to provide the highest quality service to ship owners.
Individual serviceISN develops safety and security con-cepts for ship owners worldwide. Our individual services range from merely consulting via on-board audits up to the operative deployment of armed escorts. Our security personnel, being former members of special police or military units, have many years of professional experience and are especially trained for maritime security assignments.We can provide the following: » Highly experienced, trained and
selected (European) personnel » Regular intelligence and piracy reports » Vessel hardening to prevent hostile boarding » Crew security training and drills » Modern, effective and registered weapon systems
A proven concept ISN’s concept of operations for protecting cargo ships is based on the following: » A prerequisite of physical and technical security measures, including razor wire, physical protection of sensitive areas and physical barriers to prevent access through gangways.
» The number of security personnel deployed on any given ship depends on the ship’s size and obstacles obstructing view from the bridge to ensure that, at any given time, the entire ship and its surroundings are in full view of the security team.
» Early warning systems and the prevention of unauthorised boarding through the communication of warnings, evasive manoeuvres and the use of firearms when necessary. » Use of a safe room capable of housing ship personnel for up to 96 hours. The safe room also serves as a control centre capable of controlling the ship’s course, monitoring activity on board the ship and communicating with emergency responders and rescue teams. » Procedures for security personnel to respond to a violent attack on board, aimed at preventing unauthorised boarding and repelling an attack on board the ship.
Vessel protection in the Gulf of GuineaIn response to the tremendous level of demand, ISN recently announced that it will also offer vessel protection in the Gulf of Guinea. Despite the prevalence of maritime piracy off the Nigerian coast and in the wider Gulf of Guinea, piracy in this region tends to receive less public attention than in the Horn of Africa and the Gulf of Aden. The grow-ing frequency of attacks and the higher insurance premiums for shipping in the Gulf of Guinea led us to extend our offer of services to vessels calling at ports in the Niger Delta.
Meeting our clients’ needs by provid-ing the highest standards is our main tasks as one of Germany’s pioneers in maritime security.For further
information visit: www.isn.eu.com
MSI book.indb 4
21/08/2012 15:41
1
Summer 2012 Maritime Security International
PubliSherW h robinson
editorSandra Speares tel: +44 (0) 1483 527998
e-mail: [email protected]
SAleS mAnAger david Scott e-mail: [email protected]
deSignerJustin ivesjustindesign.co.uk
Published by:
maritime media ltd
the diary houserickett Streetlondon SW6 1ruuKtel: +44 (0) 20 7386 6100
Fax: +44 (0) 20 7381 8890
e-mail: [email protected]
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.co.uk
introduction
Piracy is by no means a new concept but as a Newport
News symposium on the topic pointed out in 1997 it
was more a question of new methods for an old trade.
Since that symposium, with its memorable poster of a
pirate brandishing an AK 47, took place, things have
moved on and the recent upsurge of pirate activity
off the coast of Africa, which is showing no signs of
abating, ensuring the safety of crews, vessels and
cargo has never been so important.
However, piracy is just one of the issues that needs to
be tackled as far as maritime security is concerned.
While new security firms are springing up almost daily,
leaving one to wonder if there are any personnel left
in UK Special Forces or if they have all moved into
the private sector, these are only part of the equation.
Owners, managers, insurers, flag states and maritime
charities are all part of the mix.
Maritime security is vital for the safe running of
ports, offshore installations, and to ensure that
seafarers and ships are protected against the
dangers and difficulties that such issues as drug
smuggling and carriage of stowaways represent. As
offshore installations move into ever more isolated
environments, security of those installations and the
personnel that man them is a prime consideration,
while port security is becoming ever more rigorous.
In this new publication Maritime Security International
we will be looking to explore some of these issues and
talk to people that are at the sharp end of ensuring the
safety of all industry players, whether from a physical,
legal or technical perspective.
MSI book.indb 1
21/08/2012 15:41
www.mar-media.com
26
www.greenshippinginternational.com
Corporate Profile
RightShip: introducing an easy indexLast year Cargill, Huntsman Corporation and UNIPEC UK, who together
ship 350 million tonnes of commodities annually, announced that they
would only charter the more energy effi cient vessels as determined by
RightShip’s Existing Vessel Design Index (EVDI™) and Greenhouse Gas
(GHG) Emissions Rating. The announcement polarised the shipping
industry and some industry associations denounced RightShip’s EVDI™
as too simplistic and an inaccurate system. Here, RightShip’s CEO,
Warwick Norman, answers his critics and explains why the shipping
industry needs a reliable and easy-to-understand index to measure the
energy effi ciency of the world’s existing fl eet. What is RightShip’s EVDI™?
RightShip’s Existing Vessel Design Index (EVDI™) provides a theoretical estimate of
the amount of carbon dioxide emitted by any nominated ship, per tonne nautical
mile travelled, based on the engine and vessel design characteristics when the ship
was built. It is based on the same principles as the International Maritime Organiza-
tion’s (IMO) Maritime Environment Protection Committee (MEPC)’s Energy Effi ciency
Design Index (EEDI). However, unlike the EEDI that is applied only to new ships from
1 January 2013, the EVDI™ is designed for application with existing ships.
If the IMO’s EEDI was designed for new vessels, can it be applied
to existing ships? Yes. The 2007 Denmark paper that initially proposed the EEDI to IMO’s MEPC
stated that it is not inconceivable that design indices or equivalent may be applied
retroactively to existing ships. The IMO has now documented EEDI benchmarks and
reference lines based on the existing fl eet and historical data. How reliable is the data used in the EVDI™? And how can owners
check and fi x errors?We aim to only use accurately sourced data and our calculations are consistent with
those accepted by the IMO for its application of the EEDI.
EVDI™ values are calculated from data on ship characteristics that is accessible
to RightShip. The primary sources of data have been existing data within RightShip’s
Ship Vetting Information System (SVIS™), IHS Fairplay (IHS) database, classifi cation
societies and ship-sourced data. Before we launched the EVDI™ in 2010, we provided an advanced preview to our
owner/manager customers, seeking their validation of the data provided through
IHS Fairplay and other sources. In September 2012, we also contacted over 4,600
shipowners in our database, inviting them to view and update the engine and vessel
design particulars of their fl eet for free through our partners at shippingeffi ciency.
org. Since this site has been launched, the system and data has been accessed and
validated over 100,000 times and this gives us confi dence about the reliabilty of our
information. We continue to work closely with shipowners to validate the data used
for their vessels and fl eet lists.How does the GHG Emissions Rating work? Isn’t an A to G scale
too simplistic? While the A to G benchmarking scale is simple to understand, the methodology
used to calculate the GHG Emissions Rating is complex. The A to G rating is based
on the vessel’s EVDI™, which is then logarithmically adjusted and compared to
the mean and standard deviation of vessels of a similar size and type to provide a
metric called the EVDI™ Size Score. The EVDI™ Size Score (Z Score) is then used as
a statistical measure of relative effi ciency across peer vessels. It would be unfair to
compare a 40,000 dead weight tonne tanker to a 200,000 dead weight tonne bulk
A to G Greenhouse Gas Emissions Rating System
Vessel Sustainability RatingsCarbon foot printing tool for ports and terminals
Third party verified data for retrofits and
upgrades information on vesselsSEEMP & TEEMP data capture
MANAGING eNvIroNMeNtAl rISK
Australasia | MelbourneP +61 3 8686 5750
Europe | LondonP + 44 207 337 6180
Americas | HoustonP +1 (281) 245 3380
For More INFo CoNtACt
GHG eMISSIoNS rAtING
SPeCIAlISt ServICeS FortrADerS CHArtererSSHIP oWNerS terMINAlS / reFINerS Port AUtHorItIeS INSUrerS
A
B
C
D
e
F
G
GSI Book.indb 26
07/03/2013 11:46
18www.greenshippinginternational.com
Shipping has no choice but to find a way of meeting 2015’s tough sulphur limits, but is fuel switching too expensive and can scrubbers offer a viable alternative?
Cap in hand
The industry has less than two years to meet the 0.1% sulphur cap for emission control areas (ECAs) and yet arguments over which approach is best to meet the cap are still ongoing. In one corner are exhaust gas scrubbing systems manufactured by companies like Finland’s Wärtsilä and Germany’s MAN B&W, and in the other is the option to switch away from burning heavy fuel oil and use more expensive distillate fuel or even, primarily for future newbuilds, LNG.Can scrubbers offer an effective, reliable and affordable solution, though? The
technology is mature on land but shipboard installation is still relatively new. Wärt-silä only began operating its first pilot installation on the tanker Suula a little over four years ago, while MAN followed suit on a ferry operated by Denmark’s DFDS a year later. Wärtsilä and its subsidiary Hamworthy Krystallon have now started to win their first commercial installation contracts, with an initial order from Containerships Ltd in 2010, followed last year with fresh deals for six newbuild ships with Laker operator Algoma and one newbuild panamax LPG carrier, owned by Solvang.
So far, most orders have been for closed-loop freshwater systems, which have a self-contained supply of washwater to which caustic soda is added to neutralise sulphur before the water is treated to remove particulates, oil, and the acidic sul-phur content, then pumped round the system again. Open-loop systems simply pump seawater into the stack, using natural alkalinity to neutralise sulphur oxides, rendering their operational reliability vulnerable to changes in salinity and water content, then filter it for oil and particulates before pumping it back over the side. Closed-loop systems take up considerably less space, but require more equipment, caustic soda supply, disposal of treated waste water on shore and can suffer from added corrosion.
However, in December last year, Wärtsilä received a repeat order to provide a hybrid exhaust gas cleaning and SCR system. The systems provide universal com-pliance with sulphur limits, including the North American ECA, the 2015 0.1% ECA in Europe, the worldwide 0.5% sulphur limit from 2020 and Tier III IMO NOx limits from 2016. The hybrid exhaust gas cleaning system also enables the choice between open-loop and closed-loop scrubbing to be made at any time. This means that exhaust gas cleaning using only seawater can be enabled at sea, but while manoeuvring or in port the system can be closed, re-circulating the water already within the scrubber. In addition, the SCR system, which is integrated into the engine downstream of the exhaust gas turbine, will remove up to 95% of NOx from the vessel’s emissions.
MAN B&W is working on a dry scrubber, in which exhaust gas flows through limestone granules in – in one pilot proposal, at least – a 20ft container stored on board. The sulphur reacts to form gypsum and once the limestone is used up, the whole container can then be removed to the shore and replaced. This technology, while potentially attractive to owners due to the relative ease of disposal and mini-mal technical requirements, is still very much in its infancy though, and all produc-tion models so far are wet systems.Meanwhile, Singapore-based company Ecospec says it has developed a freshwater
closed loop CSNOx system, which has been successfully trialled by Canada Steamship Lines. Ecospec’s. Ecospec caused something of a sensation in 2009 when it revealed its CSNOx system as the world’s first emissions abatement system capable of removing car-bon dioxide (CO2) from engine emissions. The system is designed to abate three gases in one process that operates in both closed loop and freshwater conditions.Great Lakes operator CSL has installed a CSNOx system on one of its bulk carriers,
the Spruceglen. The first series of tests carried out last year were aimed primarily at optimising the efficiency of the sulphur oxide (SOx) reductions. Ecospec says: “ The system has been running for hundreds of operating hours in an economy mode with confirmed reductions of SOx. The system is also capable of reducing CO2 and Nitrogen Oxides (NOx) concurrently. Formal performance measurements of these two gases will be carried out during phase II tests to be done in 2013, once the SOx removal process has been optimised.”
Emissions
GSI Book.indb 18
07/03/2013 11:46
Publisher: W H Robinson
Editor: David Hughes
Deputy editor: John Rickards
Sub Editor: Samantha Robinson
Head of Maritime Publications: Taj Oberai
Sales: Cam Raza ([email protected])
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The opinions expressed in this publication are not necessarily those
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international
2013
www.greenshippinginternational.com
spring
GSI Book.indb 1
07/03/2013 11:45
international
www.greenshippinginternational.com
2013spring
Carbon conundrum - biofuel or nukes?
Green Award takes in boxships
ECA 0.1% sulphur limits loom
Class societies go green
Scrapping
EU spanner in
the works
GSI Book.indb 1
07/03/2013 11:44
INTERvIEW
Spring 2013 13
during the European and Asian forums, the first of which will be
held in Geneva in early June.”According to Leslie, apart from the obvious challenges
with Dodd Frank Act and CFTC regulations, volatility and the
resulting liquidity has been a tale of crude versus clean. “As
many observers of the tanker market will know, the crude sec-
tor, especially vLCCs, is in dire straits and returns are extremely
poor. Liquidity in TD3 has suffered, with little prospect for spec
players to make a return and poor conditions for owners and
those with exposure to manage risk. The clean sector has been
the antithesis with strong volumes from the beginning of the
year, with both very strong MR2 and LR1 markets. Liquidity
has benefited as a result and it’s encouraging to see this sector
growing and new players participating.”
So what can market players expect for the future?
According to Radcliffe: “It is obvious that the dry freight market
continues to feel the effects of the boom years during which
the newbuilding orderbook exploded. 2012 was the peak
delivery for the Capesize sector, while it is this year that is peak
delivery for the Panamax sector. With scrapping on the increase
due to the low value of each sector, there are some that see a
slight recovery in the Capesize sector towards the end of this
year. For Panamax, it will be longer before the supply/demand
equation becomes more demand driven and less oversupplied.
“The oversupply of Panamax vessels can clearly be seen by
the level at which the vessels have been competing with each
other to fix grain business ex ECSA at this time of the year –
the 2a index only managing to reach $18,000 so far,” Radcliffe
says. “With the arrival of vale’s new fleet of valemaxes and the
shift in trade patterns over the past five years, the open freight
market is increasingly dominated by trans-pacific trade (around
50% of seaborne trade), influenced largely by the 7.5-8.5%
annual economic growth of China. It is largely this economic
growth that will eventually lift the freight market out of its
current gloom in the coming year or so.”
According to Leslie: “There is definitely a sense on our
desk at ACM/GFI that things are turning a corner in the clean
sector. From the S&P market, to projects and time charters, to
spot, and also FFAs, there is a new confidence, albeit fragile,
that prospects are improving for this sector. The paradigm
shift we are seeing in the United States as a result of the
shale oil story as well as increased refining capacity in the east
undoubtedly points to new and greater product flows.
“However, as my research team has pointed out, there
could well be some surprises for the crude oil sector as well
with greater tonne mile demand being created by flows from the
caribs to the east and similar flows of that nature.” n
As many observers of the tanker market will know, the crude sector
is in dire straits and returns are extremely poor
COMMODITIES
Spring 2013 21
to be the major reason that South Africa overtook India as the third largest iron ore supplier to China. n TATA’S IRON ORE SHIPMENTS Northland Resources has started shipments of iron ore to Tata Steel UK Limited .The first shipment from the Port of Narvik in Norway was for 40,000 tonnes of high-grade iron ore concentrate for a customer in Europe. FE content is above the expected 69%, Northland said. The cargo was shipped by Star Norita to Tata Steel in the Netherlands where the product will be used in their pellet plant.
The first shipment to Tata will be followed by regu-lar shipments to customers in Europe, the Middle East and the Far East. Total shipments in 2013 are expected to amount to 1.5 million tonnes, increasing to a rate of about 4 million tonnes per year, or 350,000 tonnes per month, by the third quarter of 2014. n
CHINA STEEl SuPPORT China's steel association said it would support Brazil’s vale docking its giant valemax ore carriers at Chinese ports if that would lead to a decrease in iron ore costs for its members, Reuters reported at the end of January.“This is a matter for the transportation authorities, (but) Chinese steel enterprises hope that iron ore prices will fall and that transportation costs will fall, and if this is good for that, then I support it,” Zhang Changfu, secre-tary-general of the China Iron and Steel Association, said at a press briefing.
n wAIO ON THE uP According to BHP Billiton, Western Australia Iron Ore (WAIO) delivered a twelfth consecutive December half year production and sales record as the business continued to benefit from the company’s decade- long investment in supply chain capacity. “Our Pilbara operations achieved another significant milestone during the December 2012 quarter with first ore received by the recently installed fifth car dumper at Finucane Island. This car dumper is the last major piece of infrastructure required to increase WAIO port capacity from the December 2012 quarter run-rate of 188 million tonnes per annum to 220 million tonnes per annum (100% basis). “The Jimblebar Mine Expansion, which is on schedule for first production in the March 2014 quarter, will broadly match mine and port capacity at this expanded rate, while the progressive de-bottlenecking of the supply chain is expected to underpin substantial low cost, longer term growth in our WAIO business,” the company said. “The strong outlook for our WAIO business is underpinned by an anticipated 5% increase in production in the 2013 financial year, for unchanged guidance of 183 million tonnes (100% basis). Samarco’s (Brazil) three pellet plants continued to operate at capacity during the period.”
n
Introduction of cleared cash settled iron ore options will add value and will complement and add liquidity to the existing futures market
NORTHlAND’S KAuNISVAARA TAPulI MINE
BHP BIllITON, wESTERN AuSTRAlIA IRON ORE
CONTENTS
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organisation which promotes sustainable forest management through independent third party forest certification.
WELCOME 1
STAy AHEAD OF THE PACKOur new publication gives you the latest
information on movement of cargo
NEWS 6
IN BRIEF...All the latest news, views, company moves, reports and
conference updates
INTERvIEW 12
FORwARD THINKINGRegulation and liquidity are just two of the issues on the agenda for
FFA brokers going forward. Sandra Speares talks to GFI senior futures
and options broker and FFABA chairman Ed Radcliffe and head of
wet freight Will Leslie
INDUSTRy NEWS 14
ClEARING A PATHRegulation of derivatives trading is becoming increasingly complex and
trading platforms have to be up to date on all board moves.
However, the key issue is not to be put off by the complexity of this
topic and find people who can help keep things simple
FINANCE 16
CAuGHT IN A SEA CHANGEShipping finance is facing turbulent times, says Basil M Karatzas,
CEO of Karatzas Marine Advisors. So what is the way ahead
for shipowners?
CHINA FOCUS 18
EASTERN PROMISEAs the FFA market continues to develop in China, one question is
whether Chinese businesses that want to participate in FFAs stay on
shore and make their trade with local companies – or go offshore
COMMODITIES 20
Full STEAM AHEADStrong growth in the iron ore market looks set to continue in the
Asia Pacific region, with a surge in Chinese imports during the first
month of this year
COST REDUCTION 16
EFFICIENCy IN ACTIONAs new regulations aimed at improving the energy efficiency of
international shipping take effect, what steps are shipowners taking
to ensure that they are compliant with the rules?
SHIP vALUES 24
AuTOMATED RESPONSESome may be sceptical about whether automated
valuation works or not. Here, vesselvalue answers some
of the questions about it
TRADING 26
AllIANCE IN ACTIONThe G6 Alliance is expanding its co-operation to the
Asia-to-North America East Coast trade.
Plus: Maersk halts loop; Hanjin expands;
Suez tolls cause concern; Jamaica goes for growth
CEO OF KARATZAS
MARINE ADVISORS
ON SHIPPING FINANCE
STRONG GROwTH IN
IRON ORE MARKET
ENVIRONMENTAl
REGulATION
ON THE INCREASE
STAy AHEAD OF
THE PACK
SPRING 2013freightfocus.org
WB Autumn 2013 book.indb 56 05/08/2013 15:12
