News Bulletin – 22 September 2018

1. BIMCO aims for standard form for non-compliant marine fuel use.

21 September 2018 : Shipping association BIMCO and other organisations are working closely with the International Maritime Organisation to ensure a standard procedure for ships to use high sulfur fuel if compliant alternatives are not available at a port once the IMO sulfur cap comes into effect on January 1, 2020, a senior executive said this week.

The shipping industry has proposed a standard form to submit all details to enable the use of other fuels if they can’t find compliant fuels,” BIMCO’s President Designate Sadan Kaptanoglu said on the sidelines of the Marine Money conference in Singapore.

IMO’s mandatory sulfur cap for marine fuels from 2020 is 0.5% compared with 3.5% currently. At its meeting next month, IMO’s Marine Environment Protection Committee will review global preparedness to implement the new rules. Any introduction of a standard procedure to use non-compliant fuel will require an amendment to the rules.

There is increased pressure on ship-operators to buy compliant fuel during the transition period, which, coupled with the likelihood of regional non-availability of compliant fuel, raises serious concerns for safe and efficient shipping operations, according to a draft submitted by several organisations including BIMCO to the IMO.

2. Rising number of empty berths signals lull in shipping.

20 September 2018 : Activities at the Lagos Port Complex, LPC, may be going through a lull as 24 empty ship berths were recorded on the average last week, giving an occupancy rate of about 54 per cent, against the full capacity of 52 berths.

Hitherto, the berths are usually busy at 100 per cent occupancy rate with vessels on queue to berth. Maritime operators told Vanguard. Maritime Report that though at 44 per cent vacancy rate it appears an improvement against last month’s position, but going by the trend in recent times the vacancy rate may still go above 60 per cent by end of the month.

3. Training for reducing emissions in ports.

19 September 2018 : IMO’s work to promote better understanding of – and steps to reduce – emissions in ports has reached Georgia, at a workshop for regional participants from Georgia, Ukraine and Turkey.

The event, in Batumi (10-12 September) focused on how to undertake emissions inventories and calculate emissions, including GHGs and air pollutants. Participants were also introduced to strategies to address emissions from different sources – such as from seagoing vessels, cargo handling equipment and trucks.

The Batumi workshop was hosted by the Georgia Maritime Transport Agency alongside the country’s International Maritime Forum, and part-funded by the European Bank for Reconstruction and Development. It is the 9th instalment in the series of GLOMEEP port emissions workshops, which will conclude in Panama later this month (25-27 September).

4. Research team works towards safer and more cost-effective crewing.

18 September 2018 : At this year’s World Maritime Day on 27 September, the International Maritime Organization will celebrate its 70th birthday by addressing challenges in maritime transport in order to work towards continued growth in the industry.

One of these challenges is crewing, which affects not only the cost of transport – accounting for about 50% of the operational expenses onboard – but more importantly the safety and welfare of seafarers themselves. To address this, Solent University senior research fellow Dr Kate Pike is leading a team to find out the best manning strategies to employ onboard a vessel, with a focus on keeping the top management in place for more than one voyage.

5. FUELSAVE Applies to Join the CO2 Challenge.

18 September 2018 : Germany-based manufacturer of fuel saving additive, FUELSAVE, has applied to become a partner of the CO2 Challenge, the initiative set up by US conglomerate Cargill, entrepreneurial group Rainmaking and classification society DNV GL.

The CO2 Challenge aims to partner with start-ups and technology companies with systems capable of reducing a vessel’s CO2 emissions in line with international climate strategies and targets. Since the initiative was launched in June 2018, it has received some 70 applicants from 20 different countries.

As shipping looks at solutions capable of cutting carbon emissions in half by 2050, the CO2 Challenge is the optimum platform from which to launch new technology. The initiative not only helps the industry discover new solutions capable of reducing shipping’s impact on the global environment, but it can provide start-ups with the help they need to get their innovations to market and scale up production,” Marc Sima,FUELSAVE co-founder and President, said.While the FUELSAVE application has yet to be assessed, the partners have set strict entry criteria to ensure that only companies with viable technologies capable of reducing a ship’s carbon footprint by 10% can apply.

6. Ports seen to handle more cargoes in Q4.

18 September 2018 : Port operators are optimistic that congestion will not be a problem in the fourth quarter, despite the traditional surge in the volume of cargoes during the holidays.

International Container Terminal Services Inc. senior vice president and Manila International Container Terminal head Christian Gonzalez said the ongoing expansion of port terminals was expected to avoid another congestion episode.

There is expansion everywhere. We have ongoing expansion in Cavite, Cagayan de Oro, Subic and in the MICT,” he said. Gonzales said while there was “a bunging of vessels from China”, this was a natural effect of typhoons which were forcing ports to shut down.

ICTSI is expecting a double-digit growth for the Subic operations on higher cargo traffic in the northern part of Luzon. Gonzales said expansion in Manila was also steadily progressing with the construction of Berth 7 and a plan to start building Berth 8. We look to work more on the interface of the toads between the North Harbor and the MICT,” he said.

7. Adani, JNPT likely to bid for acquiring bankrupt Dighi Port.

17 September 2018 : Adani Ports, India’s largest private sector port operator, and Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai are likely to bid for Dighi Port, which was declared bankrupt by the National Company Law Tribunal (NCLT) in April, according to two people aware of the matter.

A subsidiary of South Korean steel giant Posco is also rumoured to be interested in the port, although Mint could not independently verify this.

Queries sent to Posco Maharashtra Steel and Adani Ports were unanswered at the time of going to print while a spokesperson for JNPT declined to comment.

Dighi Port is a minor greenfield port located in the Raigad district of Maharashtra, along the Konkan coast. It is a private port owned by Balaji Infra Projects Ltd and IL&FS Ltd. Dighi port is part of the Dedicated Freight Corridor and the Delhi-Mumbai Industrial Corridor.

The port is being developed as a multipurpose, multicargo and all-weather port under a 50-year concession agreement with the Maharashtra Maritime Board (MMB) on a build, own, operate, share, transfer basis and has a land bank of 1,600 acres.

In an interview on 22 May, Neeraj Bansal, chairman-in-charge, JNPT, said that the Mumbai-based port operator had hired a consultant to carry out a feasibility study and identify potential acquisition targets. This included the loss-making Mormugao Port Trust in Goa and the Dighi Port in the Konkan.

For South Korean steel maker Posco, it will be its first logistics-related investment in India. Posco Maharashtra Steel, a subsidiary of Posco Korea, operates a plant in Raigad district with installed capacity of 0.45 million tonnes per year of coated steel and 1 million tonnes per year for cold-rolled steel.

8. Cargo Handling By Indian Ports Shows Impressive 5.13 Per Cent Growth In April-August Period.

11 September 2018 : Major Indian ports showed a smart uptick in the quantum of cargo handled for the period April-August 2018. A growth of 5.13 per cent was recorded with 288.38 million tonnes of cargo being handled by the major ports over 274.32 million tonnes handled in the corresponding period last year.

The ports with impressive growth rates were Kamarajar (Ennore) recording 17.24 per cent growth followed by Deendayal (Kandla) at 11.16 per cent and Paradip at 10.93 per cent. Data released also shows that Deendayal (Kandla) registered the highest traffic and had a 16.95 per cent overall share of traffic handled by the major Indian ports. Paradip and Jawaharlal Nehru Port Trust (JNPT) follow with a share of 15.53 per cent and 10.05 per cent of overall traffic.








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