Turkish Marine Post 2 by Oruç Reis Denizciler Kulübü

Port values hit billion as foreigner interest mounts

VBG at talks for floating dock

Turkish

Turkish ports, ironically in contrast with early 90’s when they were first lined up for privatization, become the centre of attention as Turkish government envisions 500 billion dollar..... Page 4

Shipping investor VBG recently added yacht and ship building to its portfolio of maritime investments, consisting of ownership and operations. Page 19

Marine Post International Sound of Turkish Shipping

Year: 1 G Issue: 2 G March-April 2011

Salvor expects boom in rig business

Page 6

Vera admits another handy

A recent acquisiton made by Turkish ship salvage company Solar Salvage Services places its name well up in country’s list of marine salvors,.... Pages 10

Horizon sets foothold on livestock business Page 9

İstanbul based Vera Shipping seems to be yet another owner on the Turkish handysize investors bandwagon.

Page 9

Turkish yards veer back on repair course Turkish shipyards return to maintenance and repair activities amid slack newbuilding demand and ditched orders. As some yards have individually reached over 170.000 dwt docking capacities, Turkey now looks set to become European repair hub. Page 16-17

Turkish Lloyd steady on IACS course T urkish national classification

society Turkish Lloyd Association (TLV), Paris MoU’s 6th best performer for the third consecutive year and a regular of the white class list, advanced to second stage in the meticulous process of IACS membership. Page 20

Undersecretariat for Defense Industries shifts gears

Government in talks over naval ship exports Loça bags workboat septet Marine equipment maker Loça Engineering revealed that it was commissioned to build 7 workboats for Swiss buyers last week. Page 18

urkish yards, especially the leading septet that designed and built the first project now aspire to become exporters of such naval projects. This comes as no surprise as a handful of shipyard have been known to build military or defense related boats and export across the world for some time now. Yards now scale up their targets in order to sell naval

ships in the same markets. According to Mr. Serdar Demirel, Head of Naval Projects Department under the Undersecratariat for Defense Industries, these are not unfounded ambitions. “Turkish shipyards have learnt designing and building navy ships very well and now conditions are ripe to start selling these projects” he says. Page 12-15

Beşiktaş bags drill rig repair job Page 11

EDITORIAL... Stepping out of the big picture... Those who are in can either suffer or savor...perhaps they can enjoy the tranquility or maybe thrown in perplexion. Either way they can not judge or evaluate correctly. Any assessment they would dare to make, could only match the description of an elephant made by a blindfolded person who is only allowed to touch a single limb. To perceive correctly one must take an outside perspective knowing that nothing is composed of singularity. This is what objectivism is made of. When assessing the upheaval that started from Tunisia, quickly spilled over Algeria, Egypt, Libya, Yemen, Bahrain, Saudi Arabia and is feared to spread further, I think we should take a conspirational approach rather than easily accepting that is “the uprising of oppressed minority –whose share from their oil rich countries’ income has only been poverty against tyrants, their puppet governmets, military and ignoble middle-class.

Turkish

Multi-polar global economy East and West have started to weigh somewhat equally on both ends of the global economical power balance, whichis the primary factor influencing people and social life. World economy now revolves not only around US, EU or Japan, but also Russia, Brasil, China, Korea, India, Malaysia, Singapore and even Turkey. In this multipolar environment, the West and its culture no longer reap the reward alone. Perhaps the most successful maneuverings have been made in Turkey, where the incumbent government, encouraged by massive public support, revamped its economy as well as reshaping the sovereign structure into more globally integrated and active one that has become more active in foreign policy. Mr. Obama’s succession to US Presidency also emerged as a success of this mulipolar line up. This provided the world with a new view that Middle Eastern and Arabian totalitarian regimes, once nourished and supported by the west could now pose a threat for it. Israel a regional superpower has been cornered via Turkey, exposing to the world its oppressive deeds in the region. As the world started to discuss how to rid the region from such repression, a spark in Tunisia, ignited a huge fervor that spread over other Arabian countries, which became the beacon of hope for the people in the region. May Israel soon be given the same enlightening…These movements for the time being seem to be seeking after secularity and democracy and

Marine Post Owner, on behalf of ODEK

Murat DALYAN Administration: Rauf Orbay Cad. Uğurlu Sokak Deniz Park Villaları No: 8 Tuzla / İstanbul / Türkiye Phone: +90 216 701 28 44 Fax: +90 216 701 28 21

tmpost@odek.org www.odek.org

not advocating further discrimination and chauvinism. Let us all hope the movements are not corrupted into a monster to the benefit of foreign powers. Impact far weaker than expected Ali YILDIZ The impact of turmoil manifests itself in oil prices, Euro/USD party, interest in real terms as well as gold prices. Soaring oil prices already has had some setback on dependant countries, while lack of commercial activity has been causing a temporary economic slowdown. While Arabian world is embroiled in political disarray, Japan was hit by a far greater force. The earthquake and the nuclear crisis in the aftermath is set to have more serious consequences on the global economy. Nikkei slumped, primary commodity prices such as of wheat sharply declined, followed by sales. Ensuing nuclear hazard, it seems, will fuel the uncertainty and chaos. Turkey still safe heaven As for Turkey, quoting Ali Babacan, the prime minister’s deputy, “Turkey’s risk premiums are still below 12 EU members”. The treasury issued 2.17 billion USD worth yen denominated bond -or “Samurai Bills”supported by JBIJ (Japanese Export & Import Bank) on the day of the earthquake. This alone is a good indication of Japanese confidence in Turkish economy. Solar power plants in African the deserts The catastrophe in Japan proved to the world that industrial capitalism’s power sources are no longer sustainable. Desertec, the Association of Desert Technologies founded with the lead of energy giant ABB with contributions from Solar Millenium AG and Hassan Bin Talal, former Jordan King’s brother, contemplates solar investments in North African deserts, with the Sahara topping the list. According to an interesting remark on Desertec website deserts get enough sunlight in 6 hours to support the global energy consumption for an entire year... editor@turkishmarinepost.com

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Managing Editor Vedat PARLAR G

Editor-in-chief Murat NEBİOĞLU G

General Coordinator Ali YILDIZ

Editor Engin KOÇAK editor@turkishmarinepost.com www.turkishmarinepost.com G

Special thanks to Mrs. Sevim Tarhan ATASOY for her courtesy of providing photos

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Turkish Marine Post

Port values hit billion as foreigner interest mounts Turkish ports, ironically in contrast with early 90’s when they were first lined up for privatization, become the centre of attention as Turkish government envisions 500 billion dollar export volume by 2023. While new projects are likely to be rolled out, existing ports draw interest from local and foreign major players, some to an extent that push the values to record heights. Container terminals particularly appeal to the investors. urkey is reported to have 176 ports and piers, mostly owned privately and are likely to increase in number as The Ministry of Transport has revealed plans to build four container hub ports. First of such projects, North Aegean Port to be situated in Çandarlı region, is set to become one of the 10 largest port facilities in the world and will be announced for tender this year. .Full story on this 400 million dollar builtoperate-transfer investment is covered on this page separately. As over 90 percent of Turkish foreign trade is handled through the country ports, underlying reason for sudden swell in interest seems rather obvious. Government’s goal of achieving half a trillion dollars of exports by the end of 2023, -which

investors seem keener nowadays to step in with partnerships or outright investment. At this pace, new projects will double port capacities in the next 5 years, experts suggest.

marks the Republic’s centenary- whets the port operators’ appetite since export is likely to trigger imports

almost equally. Local big players appear to have been playing a bigger role in privatizations while foreign

Ports back to good old days 2010 statistics on cargo handling reveal that Turkish ports’ activity has caught up with pre-crisis figures. 2010 saw increases of about 29 percent in container, 44 percent in dry bulk or general cargo and 52 percent in vehicle handlings recorded throughout the country ports. These translate to 5.8 million TEU’s of containers, 101 million tones of dry cargo and 1.5 million vehicles. Liquid cargo handlings on the contrary took a substantial plunge from 38 million tons in 2009 to 15 million tons last year.

PORTS

Turkish Marine Post

Tablo2: Succesful Port Privatisations Ports

Year Privatised

Highest Bid

Preferred Bidder

1997 1997 1997 1997 1997 1997 1998 2001 2003 2003 2003 2003 2007 2010 2010 2010

3,2 milyon 4 milyon 800 bin 104,9 milyon 1,6 milyon 5,6 milyon 29 milyon 14,9 milyon 27 milyon 12,5 milyon 4,2 milyon 22,4 milyon 755 milyon 175,5 milyon 125,2 milyon 372 milyon

Çakıroğlu Park Denizcilik Çakıroğlu Akkök Çakıroğlu Asım Çillioğlu Global Marmaris Global Ulusoy Kolin İnşaat Albayrak PSA-Akfen Çelebi Ceynak Limak

Giresun Limanı Hopa Limanı Sinop Limanı Tekirdağ Limanı Ordu Limanı Rize Limanı Antalya Limanı Marmaris Limanı Kuşadası Limanı Çeşme Limanı Dikili Limanı Trabzon Limanı Mersin Limanı Bandırma Limanı Samsun Limanı İskenderun Limanı

Authority, which spent 105 million dollars to buy suitable land to set up a container terminal in the Gulf of Izmit. Project in consideration calls for 257 hectare landfill towards the sea in order to create sufficient space to stack over 800 thousand containers. Project also incorporates two 912 meter long piers for berthing. Big groups come into play During the past 17 years, operational concessions of 16 ports previously controlled by State Railways (TCDD) have been transferred to private sector. This privatization move has yielded 1,657 billion dollar to the Turkish treasury. While during the 90’s, only local players had declared interest for privatizations, today they are at grips with global port operators over such acquisitions. Among the most remarkable investments were Akkök Group’s acquisition of Port of Tekirdağ which followed a 60 million dollars investment for improvements, Çelebi Holdings’ Port of Bandırma investment and Limak Group’s Port of Iskenderun purchase. Port of Derince was also bought, however the sale has been abolished to the frustration of highest bidder Türkerler Group. Hüsnü Özyeğin owned FIBA Group’s Kumport buyout was also an eye-catcher. DPA enters with land purchase One of the first companies to set a foothold in Turkey for port investments was Dubai Ports

PSA – Akfen venture beefs up Mersin performance Singapore based PSA Group took a more indirect approach and bade along jointly with Akfen for Port of Mersin tender in 2007 and subsequently assigned operational rights for 36 years in a 755 million dollar deal. The venture has invested over 100 million dollars so far into the port and aims to reach 1.7 million TEU capacity by 2012. Hutchison lost Izmir deal, mired in bureaucracy Chinese port operator Hutchison laid eyes on Port of Izmir in 2007 and was awarded the 49 year contract for operational rights of the facilities for 1,275 billion US dollars. However, Hutchison -accompanied in a joint venture with Global and Limaş- had a short lived victory as the tender was brought before the State Council for reassessment. Although after 29 months, Global-Hutchison-Limaş Joint Venture was reaffirmed as winner, Hutchison withdrew from the deal due

to lack of finance amid emerging global crisis. Despite the dramatic outcome, Turkish Ministry of Transport is said to reschedule tender after carrying out 300 million US dollar worth improvements. Constitutional amendments made last year are understood to preclude such bureaucratic setbacks in privatization and allow for swifter procedure. MSC’s Asyaport poised for leadership Second largest global container carrier Mediterranean Shipping Company (MSC) has been gearing up to build Turkey’s largest container port so far. The 400 million US dollar worth project which is conducted jointly with other port affiliates of MSC Group, involves establishment of a 2,5 million

TEU terminal in Tekirdağ. Asyaport is slated for full capacity commissioning in 2016. Aliaga welcomes Spanish Investor TCB Group of Spain has also picked Gulf of Izmir and Aegean waters for port investments, it appears. TCEEGE container terminal project initiated at the Gulf of Nemrut in Aliaga region is currently active and handles 400 thousand TEU’s annually. The facilities are equipped with latest port machinery including 3 mobile winches, 5 container stackers of 45 ton capacity and 18 heavy duty container trailers. In addition investments for 6 Rubber Tyred Gantry (RTG) cranes and 2 pier cranes are underway. Port reportedly targets 1 million TEU capacity annually.

Tablo1: New port projects announced by Turkish Ministry of Transport PROJE VE FAALİYETLER Ports 1. Port of Filyos 2. Çandarlı Hubport 3. Mersin-Container Hubport 4. Derince-Container Terminal

Required Annual Budgets in Turkish Liras 2009

2010

8.000.000

24.000.000

2011

2012

2013

Grand Total

250.000.000 74.342.000 200.000.000 100.000.000

250.000.000 287.128.000 150.000.000 75.000.000

250.000.000

750.000.000 393.470.000 500.000.000 250.000.000

150.000.000 75.000.000

PORTS

Turkish Marine Post

Germans scout İzmir for port investments

Stage set for historical trade route revival Positive progress in Turkish economy and swelling trade volumes between Italy, has caught the eyes in Venice as the Italian ambassador to Turkey proposed to restore Istanbul-Venice seaway. ilateral trade volume between Turkey and Italy exceeded 16.7 billion USD in 2010 and -according to statistics- outperformed the previous year by almost 33 percent on the import and 11 percent on the export side. Italy has thus been the fourth largest trade partner of the country, being also the fifth biggest investor with 825 companies having directly expanded into the Turkish market. All of these, it seems, encourage both countries to enliven historical commercial ties. Italian Embassy and Venice Port Authority paid a visit last week to Istanbul shipping society with purpose to brief on recent improvements made at the port and possible advantages. Italian Ambassador to Turkey Mr. Gianpaolo Scarante marked the importance of their visit saying “The trade route between Istanbul and Venice has undeniable historical significance and our goal for this visit is to start its revival”. Mr. Scarante also commended on Turkish economy. Venetian Port Authority President Mr. Paolo Costa, similarly cited the importance of

growing trade volumes and expressed the potential of the Port of Venice, which according to him, is structured to meet the need of small and medium enterprises who rely on Ro-Ro trade. Mr. Costa also made a presentation on the contemplated improvements at the port facilities which, upon completion, will permit simultaneous berthing of four vessels. “We plan to realize the project in a year and a half. Turkey is the most important market in the mediterranean for us, while we strive to develop further relations with other East Mediterranean countries like Greece, Egypt, Syria and Israel” he said. Straight forward support from Kalkavan Turkish Chamber of Shipping Chairman Mr. Metin Kalkavan, commenting on the attempt, said “I would have hardly guessed Venice would be promoting its Ro-Ro terminals here and for this I would like thank the person behind thought” and reminded UN Ro-Ro’s Trieste Line. He also pointed out to environmental concerns and emphasized the possible cut of carbon emissions in the event that Ro-Ro lines are preffered over regular land transporation. Mr. Kalkavan said that the Turkish shipping society “welcomed such proposals coming from important countries as Italy”. One of the attendants to the reception Trabzon based Alport’s Operations Manager Mr. Muzeffer Ermiş, brought a different perspective into the project. “This presentation calls to mind a possibility to set up TrabzonVenice route too, perhaps constituting western extention for the trans-caucasian trade” he said half suggesting an idea addressing the Italian delegation, which was met with immediate interest. Mr. Costa responded saying “We take it as a marriage proposal which we do wish to accept” and emphasised that such lines could be “established rightaway, should there be sound interest on the owners’ side for deploying their vessels along this route.

nternational investment appeal of Izmir, Turkey’s Aegean hub seems to have started burgeoning as two German researchers have reportedly embarked upon the city on a “reconnaissance” mission. Germany’s interest in Izmir has become more pronounced as two researchers from Hamburg Port Consulting (HPC) GmbH, paid visits to several organizations in the city including the Chamber of Shipping Branch. Economists Dr. Stephan Dahm and Dr. Claudia Reidiger, in the course of their research for an assessment of port investment possibilities, met Chamber of Shipping Izmit Branch Chairman Geza Dologh and Vice President Yusuf Öztürk last week. Izmir Regional Port Directorate was also in their agenda, as Director Halil Hatipoğlu was asked about the cargo traffic management plans and forecast concerning the area. Mr. Dologh, in a press conference after the meetings, stated that the guests have been briefed regarding the future infrastructural needs of the region in tandem with half a billion export volume goal set by the government for 2023. “Country growth will certainly boost port activities, which need to be supported with additional investments unless we want to encounter bottlenecks” he said. Dr. Dahm also made a statement, citing their purpose as to collect data for an undisclosed international investor who seriously considers port projects in Izmir. Although Dr. Dahm praised the city for its recent rise to significance among East European port cities, he did not provide any specific information on the intended investment.

Turkey kicks off grand port project ort of Çandarlı project, designated to rank among World’s top 10 largest terminals, is set to call for bids during March. Expected to admit first vessel in 2013, Turkey’s largest port project is planned as a build-operate-transfer business model. Ambitiously set out to become one of the 10 largest ports globally upon completion, Northern Aegean Port (Port of Çandarlı) project will be up for tender on 24 March 2011. With a hefty budget over 400 million US dollars and planned build-operate-transfer business model, project draws international interest. The port is aimed to play a vital role in Turkish foreign trade as the government envisions over 500 billion US dollar worth exports at the 100th anniversary of Republic’s foundation in 2023. Although the project has been delayed due to the Ministry of Transport’s plans to apply for 600 million Euro worth EU loans concerning infrastructural investments off the coast, according to State Railway, Port and Airport Construction Administration (DLH) General Manager Mr. Ahmet Arslan the project will no longer hit any hurdles and the first vessel is expected to be admitted in 2013.

Project to challenge Piraeus Capable of admitting vessels over 200.000 dwt with 800 meter breakwater length and 40 meter draught, Çandarlı is designed as a hub port for East Mediterranean and Aegean basin, which has long been dominated by the Greek hub Piraeus. According to the officials, the project will be four times larger than its reigning Greek competitor. It is further understood form DLH that the port will have be built upon 8.000 hectares of land. Infrastructural improvement will reportedly accelerate following the tender.

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Turkish Marine Post

Natural leads in new entrants Charterer and ship manager Natural, best know for specialised coaster and handysize operations, guides investors in shipping with newly set S&P department. Group’s new arm has earned Turkish fleet 6 new vessels owned by various companies coming from textile and construction origin, who also rely on Natural to make the most out of their investments. s falling asset prices in shipping industry whets appetite of investors, who have long been only watching the industry since stellar profits era prior the crisis, some prefer to go on a buying spree under a reliable mentors lead. Natural Shipping, a chartering and brokerage house created by three partners in early 2000’s, enjoys a well earned reputation in that respect. Chartering Manager Mr. Buhari Kaçan, stated that the group had already assisted in six S&P deals, all of which were entry acquisitions of non-shipping investors.

Companies splash out millions According to Mr. Kaçan, market has seen plenty of Turkish connected second hand purchases lately. It was once only specific to deep rooted shipping companies, he remarked and added “But now many investors coming from diverse sectors make modern and capable fleet acquisitions”. A textile company reportedly paid 60 million USD to purchase three handysize vessels -obviously because Natural advised them so- followed by some construction companies. Mr. Kaçan explained that Natural initally takes up consultancy for those who are willing to venture into shipping. “Then if the investors finds our proposal feasible, we find the right vessel for them and assist them in technical and commercial

operations” he said, pointing out to the groups triple-aspect added value services. Handysize investments “financially attractive” Mr. Kaçan also compared shipping investments with others and opined that investors preferred handysize investments due to its better return on equity when global economy is stable. He emphasized that a company with three or four handy’s used to earn almost 5 million USD prior to crisis, a cash flow regime which attracts nonshipping companies into the sector as a future investment. Gloomy outlook for 2011 Mr. Kaçan said in comment to current situtation that 2011 “should be year for taking some time off” to observe the markets . “The swelling bubble burst in 2008, while 2009 and 2010 saw massive cash injections in an attempt to restore the balance quickly”, he said and added that the markets are still inclined to make adjustments. He also said that he reckoned further declines in asset values and warned that “although everybody is trying to hold on, several big players might file for bankruptcy”. Mr. Kaçan pointed out to high commodity and fuel prices and stated that the market needed time to settle.

Pasific Basin welcomes Ciner twins iner Shipping during last months greeted first handysize pair out of the initally ordered quartet, lined up in December 2009. Vessels have been delivered to Hong Kong based charterers Pasific Basin Shipping, who had already signed up for the vessels on a 3 year long time charter contract during their construction. Placed with Korean Samho Shipyard more than a year ago for 24,5 million USD each, first two vessels in the series of four were

handed over to Ciner on January and February respectively. Named “Zafer” and “Fatih”, the pair has commenced honoring the 3 year time charter contrat to which they had been committed by Pasific Basin upon delivery. Ciner looks to receiving the next duo, which are to be named “Atilla” and “Kenan” ahead of summer. Ciner has 4 Kamsarmaxes on order at Hyundai Mipo Shipyard as well as 2 suezmax tankers, awarded to Chinese Bohai Shipyard, all of which will be delivered until 2013.

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Turkish Marine Post

Densan books Sinopacific’s first Turkish orders lthough keen to avoid the limelight in Turkey, its succesful moves brought international acclaim to Densan Shipping who has recently added up a pair of 58.000 dwt supramaxes according to a Tradewinds news report. Company’s orders at Far Eastern yards including the recent twins, total five. Reportedly named Rosanna D and Roxanne D, the sister are scheduled for last quarter 2012. President Ahmet Akçal, in a statement to confirm the orders, refrained from mentioning the total worth of the deal however Clarkson’s indications for such vessels stand at about 31 million USD. Other aspects of these bookings are the fact that they are first orders Sinopacific Shipyard has received in 2011 as well

as being the first ever Turkish orders. Chinese yard reportedly has a hefty 65 vessel orderbook of similar tonnage and a 38 vessel track record consisting of yet again these designs. Densan’s line-up of orders include

two more 58.000 dwt supramaxes under construction at Nantong Cosco KHI which are due for last quarter 2011 and 2012 delivery, as well as one 57,000 toner slated for delivery from Zhejiang Yangfang Shipyard this year in December. Further reports suggest that the company acquired another 58.000 dwt supramax, the “Saker”, scheduled for 2012 delivery from Dayang Shipyard in a 30 million USD resale deal. Company at the same time owns four 2005 suppramaxes, three of which are of

53.000 dwt while one is of 57.000 dwt capacity.

Main particulars of Crown58: Length overall: 189.99m Breadth: 32.26m Depth: 18.00m Scantling Draft: 12.95m Deadweight: 58,000 mt Service speed: 14.30knots

Furtrans offloads largest vessel urtrans Shipping owned 41.200 dwt “Furtrans Bulk” was reported sold to Greek owners last week in a 25 million US dollar deal. The Marshall Islands flagged handymax was so far the largest vessel of the Furtrans fleet. The 186 meter long vessel was built in 2006 by Bulgarian Bulyard and has ice class 1D notation as well as heavy cargo strengthened holds. The yard was commissioned by Navibulgar to build the vessel prior to its privatization.

Vessel Specifications: Type of Vessel

Bulk Carrier

Year Built

2006

DWT

41200

FLAG

Marshall Island

GRT

25312

LOA

186.45 m.

Summer Draft

11.48 m.

Speed Loaded

14.5 Knots

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Turkish Marine Post

Deval gets good bargain for old trio Just ahaed of being handed over a pair of brand new handysizes from Chinese Tsuji Shipyard, Deval Shipping has offloaded older tonnage at premium prices despite pressure from crisis. eval is among the few Turkish shipping companies to go through the crisis relatively unharmed. Bearish sales market apparently did not pose a barrier for this company to get good bids for its older fleet as the 1974 built 17.000 dwt

bulker Sibel Deval has been reported sold to Syrian Green Arrow Shipping for 2 million USD. Company is understood to have purchased the vessel for 2,85 million USD in 1993. According to a Tradewinds report, yet another Syrian, Yamak Group purchased 15.700 dwt

duo, the 1979 built Hakkı Deval and 1980 built Serra Deval for 5 million USD last summer. Deval is also known to have divested a chemical tanker, the 7.100 dwt m/t Plevne just before 2010 in a 12 million USD deal. Meanwhile the company eyes up

Horizon sets foothold on livestock business

spring delivery of resale twins slated for April and June. Deval is said to have acquired the 30.000 dwt handysize bulkers from YA/SA in 2009. The pair have been renamed to “Servet Ana” and “Lady Saliha” respectively.

Vera admits another handy stanbul based Vera Shipping seems to be yet another owner on the Turkish handysize investors bandwagon. The company’s latest acquisition added the third ship to the existing two vessel fleet of handysize, in the meantime drawing the attention on itself. Vera’s existing fleet consisted of vessels Hanjin Istanbul and Sea Honest, 1997 built sisters of 27.000 dwt capacity which were reportedly purchased for 15.8 million USD each, before “El Condor Pasa”, the 2001 Muroran built 33.476 dwt handy joined. Former owners, Kyokutou Kaiun Jitsugyo KK with headquarters in Toyo, Japan have reportedly handed over the vessel to Vera for 19 million USD. An interesting detail in the sale is how Vera reportedly chose to rename the vessel, merely by dropping the last letter and naming her “El Condor Pas”.

urkish Government’s decision to lift ban on livestock imports creates new fields of business for shipowners. Horizon, shipping subsidiary of Çalışkan Group whose mainstay includes live cattle trade, is set to convert the Ro-Ro it recently purchased into a livestock carrier in Tuzla and deploy for its own shipments. Horizon Shipping has been drawing some attention with second hand purchases since 2009-2010, when the market was going through the most merciless moments. Company’s recent venture into the livestock shipping market dates back to previous year when government abolished bans on live cattle imports. Horizon has begun importing Uruguayan and Australian

cattle using third party tonnage until recently, as the company adopted a more outright investment approach and resolved to build up own tonnage. Horizons first move, in that respect, has been the Ro-Ro conversion, which will earn the company a vessel with room for 6.500 heads of cattle. Horizon’s latest batch of live cattle shipments, consisting of 10.000 heads of cattle, arrived during the first week of March. Including this last shipment, number of livestock imported by Horizon tots up to 23.000 and as the company plans to make one shipment every month, it expects to have imported a total of 50.000 heads by the end of the year.

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Turkish Marine Post

Salvor expects boom in rig business

Murat DALYAN

recent acquisiton made by Turkish ship salvage company Solar Salvage Services places its name well up in country’s list of marine salvors, as the purchase involved the most powerful tug owned so far by Turkish salvors. Solar aims to employ its new vessel for off-shore oil and natural gas rig operations particularly in the Black Sea and also throughout the region in anticipation of soon to flourish business. Solar Ship Salvage together with its affiliate Beaufort Salvage Services, is a relatively young salvor group, established in 2006 after the demise of Omur Ship Salvage –one of Turkey’s pioneers in ship salvage back in 90’s. The name of the group’s recent acquisition, “Emre Omur” is a

throw-back to that era when late Mr. Emre Omur used to succesfully run the ancestor company. Solar had last year drawn attention as it was involved in the towage of m/s Mavi Marmara, a passenger vessel that was bound to Gaza to deliver humanitarin supplies but was eventually intercepted by Israeli marines with a brutal operation that caused sustained tension between Israel and Turkey. The group appears set to grow steadily with new and powerful tugs as recently an Anchor Handling Tug Supply Vessel (AHTS) packed with over 7.000 horsepower and 80 tonne pulling capacity has been admited to the fleet. Although not the youngest, this 1977 built unit is so far the most powerful one owned by Turkish salvors.

AHTS EMRE OMUR Specifications Port of Registry Type of Vessel Date of Construction Current Flag Class Length Over All Length B. P Beam (moulded) Depth (moulded) Draft Main Engine Power Free Run Speed Bollard Pull

İstanbul A.H.T.S 1977 TURKIYE ABS 63.89 m 54.63 m 13.00 m 6.35 m 5.06 m 2 x VAAR SÈED DE LAVAL ENTERPRICE DMR-46 2 x 3656 HP Total 7312 HP 12 knots 80 tons continued / 85 tons max.

Solar, with this purchase, cemented its position in offshore salvage and support operations. Purchased from Spain during 2nd half of 2010, AHTS Emre Omur will add remarkably to the power of tug “Ocean Ergun” a 3.400 horsepower vessel with 40 tonne bollar pull capacity. According to General

Manager Mr. Murat Dalyan, the duo will assist in regular firefighting and towage services as well as serving offshore platforms particularly in the Black Sea region. Mr. Dalyan foresees increase in the potential of such operation in the region along with burgeoning oil rig business across Black Sea and East Mediterranean.

Commendation to counterparts Mr. Dalyan cited the success stories of other towage and salvage companies in Turkey and praised them for their performance and accomplishments. “We are proud with Medmarine, Sanmar, Uzmar and Boğaiçi who are widely acclaimed abroad” he praises, and adds “Turkey already became a decent brand in building tugs, however lacks a sound domestic design”.

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Beşiktaş bags drill rig repair job Beşiktaş has been awarded the repair and maintenance job to be carried onboard the world’s second largest drilling rig the “Leiv Eiriksson”, which is done exploring for oil and natural gas reserves in Black Sea and prepares to head back. eiv Eiriksson passed though the Turkish straits during January 2010 on its way to Black Sea to perform ultradeep sea drilling tasks for the Turkish Petroleum Corporation (TPAO) – Petrobras cooperation. Almost a year after its arrival, worlds second largest platform is set to head back to Norway, just after making a last call at Beşiktaş Shipyard to go through maintenance for the journey ahead. The large sea structure once again passed through the Bosphorus on the 12th of March -accompanied by many tugboats- and was towed east for Beşiktaş dock where she is estimated to stay about 2 months. The shipyard was given much praise for this bold deal as it spearheads Turkish

shipyards to edge over exceptional and complicated shipyard business fields. Straits greet next guest Just as Leiv Eiriksson was passing through the Bosphorus, American Exxon Mobil’s specially built oil exploration vessel the “Deepwater Champion” entered Dardanelles. Cited as one of the most sophisticated vessels of its kind, Vanuatu flagged 229 meter long and 98 meter high vessel came all the way from South Korea calling at Port of Bandırma where her tall tower will be temporarily trimmed to make it safely under the Boshporus bridges, a process Leiv Eiriksson had to endure twice.

Sanmar rolls off first Canadian ug builder Sanmar Ltd. has delivered the first tug in the series of four, ordered by Canada-Voncouver based Seaspan. The contract, covering two pairs of 70 and 80 tonne bollard pull tugs, was inked last August. Turkish tug builder and operator Sanmar, continues to cement its reputation and ties with tug operators worldwide as new orders flow. Sanmar was commissioned by Canadian Seaspan last August for four tugboats, consisting of two 70 tonne bollar pull and two 80 tonne bollar pull duos. First

vessel of the Canadian orderbook, the “Seaspan Raven” was delivered last month, to Vancouver based operators. It is learnt from Sanmar that Seaspan Raven has a proven design owing to Robert Allan’s Rastar 2800, but has been slightly modified to meet the Canadian Flag and Union requirements. Each tug incorporates a pair of Caterpillar 3512B engines, developing 1.840 kW of power and Rolls-Royce controllable pitch propellers. Seaspan is understood to employ these vessels in pacific coast operations.

SHIPBUILDING

Turkish Marine Post

Undersecretariat for Defense Industries shifts gears

Government in talks over naval ship exports Undersecretariat for Defense Industries, reportedly having awarded over 60 military boat and naval vessel project to local shipyards, now negotiates over several other new projects with the yards. However these new projects are intended for sale as the undersecretariat revealed talks with prospective “clients”. urkish yards, especially the leading septet that designed and built the first project now aspire to become exporters of such naval projects. This comes as no surprise as a handful of shipyard have been known to build military or defense related boats and export across

the world for some time now. Yards now scale up their targets in order to sell naval ships in the same markets. According to Mr. Serdar Demirel, Head of Naval Projects Department under the Undersecratariat for Defense Industries, these are not unfounded ambitions. “Turkish shipyards have

learnt designing and building navy ships very well and now conditions are ripe to start selling these projects” he says. An article published on 14 February 2011 issue of Wall Street Journal verifies and supports Mr.

Demirel’s views, as the paper informs that Turkey will lend UK a hand during production of Frigate 26 class naval ship, which will be commissioned by the Royal Navy during 2020. However this does not seem to fully satisfy private yard in Turkey, who managed to increase

SHIPBUILDING

Turkish Marine Post

domestic contribution levels to 70 percent. Only 7 shipyards out of 69 active ones have been approved to build naval ships. Despite undersecretariat’s plans to further reduce the number of eligible yard to 5, many private yards undergo improvements in order to draw military projects. Some even go as far as starting cooperation talks with large European institutions involving naval ship building. Mr. Demirel, in a speech during SMM Istanbul Fair held during January pointed out to discipline and specialised investment necessities of naval shipbuilding and argued that the yard involved in such projects do not generally profit. “The shipyards

MILGEM turned tables It took almost three decades for the naval projects to kick off from scratch as the National Warship Program (MILGEM) was first introduced by the Undersecretary for Defense Industries during early 90’s. The project was met with skepticism as the country was accustomed to importing defense technologies mainly from the US and Europe. Projects progressed at a sluggish pace until early and mid 2000’s when first military boat and small scale craft projects started rolling off. A larger project involving domestic building of 11 corvettes was also launched and two of these vessels were keel laid within the last two years. The lead ship in the series “TCE Heybeliada” slipped away last year from Pendik Military Yard marking the first big step in MILGEM. As the second vessel is underway at the same yard, Mr. Demirel opines the rest will “very likely be offered to private yards”

Specifications Length: 99m Breadth: 14.40m Design Draught: 3.59m Displacement: 2000t Main Engine: 2 x MTU 16V595TE90 Diesel Propulsion: 2 x Escher-Wyss CPP Top Speed: 29 knots

Armament: 8 x Harpoon Block II SSM BB 1 x 76mm OtoMelara Cannon 1 x RAM PDSM [21 cell] 2 x 324mm twin tube torpedo system (Mk 46/54 torpedo) 2 x 12.7mm STAMP (STAbilised Mechanical Platform, ASELSAN) 1 x S-70B SeaHawk

will start making money if they can proceed to the final stage of military projects. First two stages were design and successful application which have been accomplished. We have concentrated efforts in marketing these projects abroad” he said also mentioning about the possibility of domestic main engine building in cooperation with MTU and some other engine makers. Naval tally exceeds 2 billion dollars Meanwhile it is estimated that total value of military orders placed amounts over 2 billion US dollars. 60 separate projects have mostly taken off while the undersecretariat plans to

book further projects including “Landing Platform Dock - LPD”, “Air Cushioned Landing Craft”, “Seismic Research Vessel”, “Fleet Replenishment Vessel” and “Training Sailship”. Among them the LPD’s seem to be on the highlights as proposals for the first ship have been invited. It is understood that after the proposal submission period ending on 16 May 2011, qualified shipyards will be awarded 36 new projects including the first LPD. Further 27 Amphibious Assault Vehicle (AAV), 4 Mechanical Landing Craft (LCM), 2 Personnel & Vehicle Landing Craft (LCVP), one Rigid-hulled Inflatable Boat (RHIB) and one commander vehicle projects will be commenced.

SHIPBUILDING

Turkish Marine Post

Yonca Onuk set for global expansion

Renowned composite naval boat builder Yonca-Onuk inks contracts with UAE and Malaysia to start production abroad. Yard also looks to expand with outposts for global market share and brand awareness.

onca-Onuk, cited as world leader in high speed composite boat building taps into international opportunities with contracts. Managing Partner Mr. Ekber Onuk disclosed partnerships with state owned Abu Dhabi Shipping regarding boats to be produced for the Emirates also informing about a similar cooperation in Malaysia involving a 10 boat order by Malaysian Coast Guard. The facilities in Malaysia will be aimed at marketing the brand across Asia-Pacific region, he said. Mr. Ekber Onuk also mentioned about possibilities in Qatar and Azerbaijan as well as talk with Philippines, Indonesia and India. According to Mr. Ekber Onuk, Yonca-Onuk recently started focussing

on larger crafts, a new effort to reinforce international awareness and expand new horizons for the company. “We developed MRTP 40, a 43 meter craft which can attain 50 knots of speed, for a tender announced by the American Coast Guard” told Mr. Ekber Onuk, stating however that the project could not qualify due to concerns of it being the first of its class. The American interest still continues on a different level apparently, as Yonca-Onuk was asked to submit a design for use in special operations. Mr. Ekber Onuk also hinted the advent of a new series, which they proposed as an efficient weapon against piracy during conferences held in Brussels.

Başlık ???????!!!!!!!! Yonca-Onuk started naval projects during late 90’s by submitting a proposal at one of Turkish Undersecretariat for Defense Industries tenders. The company was the only domestic bidder but stood out among all strong rivals with the design. First boat was commissioned in 1998, to be followed by over 80 more in the coming decade and onwards. MRTP 33 is the most acclaimed and favoured design of Yonca-Onuk as it is the world’s fastest high speed assault boat to date with 45 knots speed, 35 meter length and 115 tons of displacement. Although Mr. Ekber Onuk started with doubt and reluctance in the aftermath of a deadly car accident that took his son Kaan Onuk, his eventual success came with the design that was named after Kaan. Mr. Ekber Onuk is pleased with the progress and steps so far taken in domestic naval industries. As a pioneer in Tuzla based R&D he says, “I believe Turkey has become a country that can develop its own craft designs, build them and equip them with yet again own designed armament and equipment. This is of paramount importance as domestic contribution level soared to over 60 percent recently”.

Yard booked out by military projects

stanbul Shipyard located in Tuzla, having decided to change tack from commercial shipbuilding to military projects 6 years ago, step up their efforts to export to other countries’ naval forces as well as the Turkish Navy. In a strategic attempt to cushion the blow from economic crises, Istanbul Shipyard 6 years ago resolved to switch to military projects and allocate all

facilites for the navy. General Manager Atilla Çiftçigüzeli told Turkish Marine Post that first military projects undertaken were modernisation of 4 SAR 35 boats which involved modifying the boats to reach 26 knot speed with 3 engines. “We delivered the boats in short notice, capable of making 30 knots. Currently a submarine recovery vessel called MOSHIP is subject for discussions which, if succesful, will be a first in the world as current vessels can only reach 600 metres while this new vessel will be able to reach 1000 meters below the sea” he explained. Mr. Çiftçigüzeli also mentioned that Istanbul Shipyard has bidden in 2 other Rescue and Towage (Rat) vessel tenders.

“Milgem succeded above intended aims” Mr. Çiftçigüzeli praised the National Naval Shipbuilding (Milgem) project and said it “exceeded all expectations and went far above intended aims”. He also conveyed that both Turkish Navy and Coast Guard had the intention to entrust further projects to domestic shipyard and related industries. “During 90’s domestic components used in a Turkish built ship only accounted for 10 percent. It has been steadily increasing since 2000’s from 30 percent back then to almost 70 percent today. This is an outstanding success for our industry” he commented. According to him, the next step will be pressing ahaed with R&D as currently 3 percent of Istanbul Shipyard’s budget is reserved for such activities for a start.

SHIPBUILDING

Turkish Marine Post

Dearsan bags naval patrol boat deal Tuzla based Dearsan Shipyard has been awarded a 16 boat contract by Turkish Navy in a 400 million Euro deal. As the yard aims for 69 percent domestic contribution, more than half of the contracted amount will go to local manufacturers.

Present & Past in Naval Projects 8 LCT Ships First three vessels’ construction has been completed at Tuzla based Furtrans subsidiary ADIK Corporation. Third vessel is scheduled for launching this month. 2 Amfibious Assault Ships Furtrans and ADIK Corporation involved again as they are reported to have started negotiations. Talks are anticipated to reach contract stage by the end of this month. New Patrol Boat Project Dearsan Shipyard commenced building first of the 16 state-of-the-art patrols in August 2007 which has recently been provisionally admitted to service. Special Underwater Squadrons Deployment Boats (SAT Boats) First two Yonca-Onuk J.V. built boats have been provisionally admitted to service. 25 tonne Coast Guard Boat Project Yonca-Onuk J.V. was commissioned to build 17 boats for the Coast Guard Command with the contract inked last November. Submarine Rescue Mother Ship (MOSHIP) Project İstanbul Shipyard has been approached and negotiations are likely to take a little while. Rescue and Towage Vessel (RAT) Project Negotiation phase is still ongoing for this 2 vessel project for which again Istanbul Shipyard has been selected. Mine Hunter Project Final acceptance has been passed concerning 6 mine hunting ship and one coastal simulated. First of the sextet will reportedly be German built, whilst latter ones are to be built in Turkey. Patrol and Anti-Submarine Warfare Ship (MILGEM) Project First two corvettes have been lined up at Istanbul Shipyard as per Turkish Naval Command’s request. First of the series have been completed whilst second is reported still under construction. Private yards might be considered for building the rest.

earsan, being among the 7 yards building ships on account of the Undersecreteriat for Defense Industries was recently commissioned to build 16 patrol boats for the navy. The yard is also adept at building chemical tankers and tugs and is known to work mostly export oriented, as the last two tugs have been delivered to US buyers. Led by Chairman Baki Gökbayrak, the yard was announced preferred bidder for the patrol boats in 2007 and completed necessary facility upgrades that cost 1.5 million US dollars in 2008. Project as a whole is estimated to cost 400 million Euros. Dearsan currently builds 8 fo the boats as well as 3 tugs and a chemical tanker. According to Dearsan Military Projects coordinator Taner Akkaya, first patrol boat was delivered to the Turkish Navy last year while the contract to build 16 boats will have been entirely fulfilled by 2015 as two enclosed halls have been “fully dedicated to build the boats. Mr. Akkaya also emphasized that the domestic contribution in this project will reach 69 percent and said “This means almost 200 million Euros remained in the country” pointing out to the support this project provides to

local manufacturers. Patrol boats “A 6 billion dollar market” Mr. Akkaya stressed the main ship support capability of patrol boats under construction and indicated that increasing piracy, smuggling and pollution incidents bolstered demand for such boats. Akkaya said “It is being suggested that in 10 years’ time patrol boat market will reach 6 billion US dollars” and added that, Turkey being among the 22 nations in the world that are capable of building such boats “could play a significant role”.

Coast Guard Search & Rescue Ships Koç Holdings affiliate RMK Shipyard has been contracted for Coast Guard Command’s order for 4 sisters. Lead ship of the quartet, namely “TCSG Dost” was launched last summer in June followed by “TCSG Güven” in December. All 4 vessels are still under construction or outfitting. 90 tonne Coast Guard Boat Project 22 boats were built and delivered to Coast Guard Command between 1998 and 2001 by Yonca-Onuk J.V. Fast Response Patrol Boat Project Another Yonca-Onuk J.V. accomplishment involving 2 boats delivered to Naval Forces Command between 2007 and 2008. SAR-35 Modernisation Project In scope of this project, between 2007 adn 2008 Istanbul Shipyard rectified propulsion systems of 4 SAR-35 boats in service of the Coast Guard Command.

İnşası Planlanan Projeler: I Havuzlu Çıkarma Gemisi (LPD) Projesi 1 adet LPD 27 adet Amfibi Zırhlı Hücum Aracı (AAV) 4 adet Çıkarma Aracı (LCM) 2 adet Araç ve Personel Çıkarma Aracı ( LCVP) 1 adet RHIB Bot 1 adet Komutan Vasıtası I Hava Yastıklı Çıkarma Aracı (LCAC) I 2 adet Yelkenli Okul Gemisi I 1 adet Sismik Araştırma Gemisi I 1 adet Denizde İkmal Muharebe Destek Gemisi I 2 adet Acil Müdahale ve Dalış Eğitim Botu

SHIP REPAIR

Turkish Marine Post

Germans plan on setting repair yard nce considered Europe’s chemical tanker building hub, Turkey now aims to accomplish the new goal of becoming a repair and maintenance base. Mauled rather heavily due to crisis with orderbook cancelations and lagging demand, repair seems vital for Turkish yards’ survival. Although reports suggest 2010 having been a good year for South Korean and Chinese yards, exactly the opposite applies for Turkey as merely a handful among 120 yards -of which 67 are active- have been given orders. While 7 more of them have queued along naval orders placed by Undersecretariat of Defense Industries, remaining majority including relatively younger ones like Beşiktaş and Sefine which are situated in Yalova region, have concentrated on repair facility investments. Shipbuilding experts state that docking installations are topmost in the list of such investments. 15 yards are known to possess floating docks, the largest of them being Kıran Group affiliate Tuzla Shipyard’s dock with 100 thousand tonne lifting capacity

Not only locals are interested in shipyard investments in Turkey. As Turkish Marine Post reported on the previous issue, German DIC Group is currently occupied with building a repair yard with 350 meter waterfront upon 120.000 square-meters of land. The project, namely “Bosphorus Shipyard” is aimed at maintaining panamax and larger vessels. German group has also undertaken a similar project in Gallipoli, Dardanelles, which is reportedly 75 percent complete. The 400 million Euro worth shipyard is planned to carry out 12 maintenance tasks simultaneously. Builders Dalsan Group reportedly promised to hand over the facilities within 2012.

which is capable of hauling out vessels up to 350 meters long. On the other hand, shipyard with dry-dock facilities number 7. Although there are 22

naval drydock at Pendik Naval Shipyard, capable of admitting vessels up to 170.000 dwt and 300 meters long while private yards to date can reach 120.000 dwt.

more dry-docks under construction at 16 different yards are due to the crisis, many of them have been suspended. Largest dry-dock in the country is the

Beşiktaş puts Eur 10 mln on dock investment Yalova situated Beşiktaş Shipyard is among those who spare no expenses to press ahead for repair business. Although the yard is one of the few yards to pouch plenty of orders

ACTIVE DRY DOCKS SHIPYARD

Deniz Endüstrisi A.Ş. Ursa Gemicilik Bak. Onarım. Ters. San. Ve Tic. A.Ş. Tuzla Gemi Endüstrisi A.Ş. Beşiktaş Gemi İnşa A.Ş. Sefine Denizcilik Ters. tur. San. ve Tic. Ltd. Şti. Haliç Shipyard

Pendik Naval Shipyard

Technical Details Capacity (DWT)

L(m)

B(m)

No. Of Docks

60,000 120,000 88,000 90,000 170,000

210 59 260 235 230 118.75 83.5 153.4 300

37 19 53 40 32 22.20 16 9.56 70 Total

1 1 1 1 1 3

1 9

SHIP REPAIR

Turkish Marine Post

TURKISH YARDS' FLOATING DOCK CAPACITIES SHIPYARD

Units

Tuzla Tersanecilik ve Turizm A.Ş. Tersan Tersanecilik ve Taşımacılık San. ve Tic. A.Ş. Desan Deniz İnşaat Sanayi A.Ş.

1 1 2

İstanbul Denizcilik Gemi İnşa San. ve Tic. A.Ş. Gemak Gemi İnşaat Sanayi ve Ticaret A.Ş.

1 2

Çeksan Gemi İnşa Çelik Kons. San. ve Tic.A.Ş. Torlak Denizcilik Sanayi ve Ticaret A.Ş. Dentaş İnşaat ve Onarım San. A.Ş. Yardgem Denizcilik A.Ş.

1 1 1 2

Proteksan Yat ve Gemi San.Tic. A.Ş. Dalsan Liman İnş. Tarama Gem. San. ve Tic. Ltd. Şti. Çindemir Tersanesi Hidrodinamik Tersanesi Uzmar Denizcilik A.Ş. (Izmit Free Zone) Beşiktaş Gemi İnşa A.Ş. TOTAL

1 1 1 1 1 1 18

Capacity (tonnes)

Technical Details L (m)

B (m)

Operation permit validity

100,000 6,620 19,000 49,500 4,200 9,000 28,000 7,000 19,000 5000 8,500 20,000 1,200 3,700 5,000 2,750 5,000 22,000

350.47 130 197.7 231.81 93.1 170 233.3 129.95 195.65 128 155 227.5 53.75 82 122.4 115.3 60 235

79.26 30 36.1 51.2 28.4 32.30 45 28.95 39.6 30 35.53 45 20 26.80 27.8 22 30 38

10/13/10 -

* Yardgem firması Tuzla Tersaneler Bölgesinde faaliyet gösteren Yardımcı ve Gemsan firmaları önünde yüzer havuz işletmesi yapmaktadır. ** Uzmar Firması (İzmit Serbest Bölge), Deniz Kuvvetleri Komutanlığı bünyesinden 1 adet havuz almış, havuzun faaliyete geçmesi için prosedürleri sürdürmektedir

including Palmali’s river going tankers during crisis, apparently it reinvests earnings in hefty repair infrastructure. Beşiktaş Shipyards purchase of Danish Fredericia Shipyard’s floating dock for a sum of 10 million Euro’s recently added the capacity to admit up to 88.000 dwt vessel for repairs, scaling the annual repair potential up from 40 to 100 ships. Beşiktaş mainly aims for Greek large tonnage with this investment; however last year it did not miss the opportunity to seal a repair deal with Italian Grimaldi Lines involving their Ro-Ro fleet. Sefine sets eyes on panamaxes Another Yalova yard, Sefine owns the largest dry-dock in the area with 90.000 dwt capacity. Being 240 meters in length, 42 meter in breadth and 9 meter in depth the dry-dock allows Panamax vessels to be admitted. Sefine can serve 5 vessels simultaneously with existing facilities including the dry-dock.

overhauling of off-shore platform Scarabeo 6. The deal had a pioneering effect for Tuzla yards and opened new horizons for the region. Last year also saw Gemak’s massive 50 million USD investment on a 260 meter dry-dock, capable of taking in vessel as big as Suezmax tankers. Gisan voices floating dock interest Having received only two orders since the break off of crisis, Gisan Shipyard apparently resolved to focus on repairs as well. Although no definite plans have been revealed, floating dock investment seems to be a likely option. Gisan, with two facilities in Tuzla and Yalova, had solely built vessels for the last 10 years.

Gemak clinches position with new dry-dock Perhaps one of the best known yards in Tuzla region, Gemak Shipyard last year drew new attention on itself by acquiring a repair contract from Italian Saipem involving

Straits give Tuzla the edge Turkish shipyards are well positioned on a transition route similar to that of China, Singapore and UAE, thus reaping benefits from Turkish straits that nearly let through over 50.000 vessels annually. As the Black Sea economies develop and vessel traffic increases yards are likely to see more ships drop by. On the other hand, quality of local suppliers have also been improving to meet more IACS requirements, making it cheaper to replace onboard equipment.

PLANNED DRYDOCK INSTALLATIONS SHIPYARD Akdeniz Gemi İnşaa ve Sanayi A.Ş. Altıntaş Mermer ve Tersanecilik San. ve Tic. A.Ş. Cemre Mühendislik Gemi İnşa San. ve Tic. Ltd.Şti. Düzgit Yalova Gemi İnşa San. A.Ş. Eras Tersanesi Gelibolu Gemi Endüstri San. Tic. A.Ş. Hatsan İnşaat Tersanesi Hürriyet Denizcilik San. ve Tic.Ltd. Şti. Kanlar Denizcilik İnş. Nak. Gemi San.Tic.Ltd.Şti. Mardaş Marmara Deniz İşletmeciliği A.Ş. Nur Gemicilik A.Ş. Palhan Tersanecilik San. ve Tic. Ltd. Şti. Samsun Shipyard Tersanesi Sedef Gemi İnşaatı A.Ş. Um Deniz Sanayi A.Ş. Yüksel Proje Uluslararası A.Ş.

Location No. Of Docks Adana Yalova Yalova Yalova Yalova Çanakkale Yalova Yalova Samsun Yalova Trabzon Yalova Samsun İstanbul İzmit Yalova Total

2 2 1 1 3 2 1 1 1 1 1 1 2 1 1 1 22

MARINE EQUIPMENT

Turkish Marine Post

Loça bags workboat septet Marine equipment maker Loça Engineering revealed that it was commissioned to build 7 workboats for Swiss buyers last week. The company apparently still has room for projects as it is tipped to ink a contract with a South Korean air conditioning to set up a local branch. In fact, “coincidentally” involved in boat building business by honoring a friend’s pilot boat request in 2008, Loça appears to have invested remarkably into the field, thus earning itself a name among Turkish small craft builders. A Swiss buyer’s order of 7 workboats worth 9 million dollars is likely to be a milestone for the company. Loça now aims for becoming a brand in the field, but is likely to venture forth to start an air conditioning partnership with Koreans. Loça is a marine engineering firm whose mainstay has always been outsourced projects such as block building, hatch covers, deck machinery and equipment, Loça’s Managing Partner Mr. Hidayet Çetin told Turkish Marine Post. They can cut, bend and weld almost 9.000 tonnes of steel into blocks or hatch

covers in their two facilities built upon more than 12.000 square meters. “We are now putting more emphasis on research and development for more added value production as crisis inevitably hit equipment manufacturers as hard as Tuzla” he said. Aggressive pricing lures hefty order Loça was persuaded into building a pilot boat for a friend, who could not find an available shipyard to undertake the project, as the chemical tankers were given the priority just prior to the crisis that swept the orderbooks. “That single boat has attracted 5 more orders for two Turkish entities” conveyed Mr. Çetin, “which has led to the recent 9 million USD Swiss order of 7 workboats on turnkey basis”. Loça will deliver all 7 of the

boats, which are capable of taking in 30 personnel and 2,5 tonnes of cargo, within the year. The company plans to make a proud showcase of their boats of own design in a number of international exhibitions and market their brand. Mr. Çetin opined that the demand for such boats is promising. “There are many builders in Australia, Singapore and of course Europe but our production is at least 30 percent cheaper than them. We are not in a rush to sell, but intend to build up brand equity as well as knowhow.” he emphasized. A/C branch to slash service costs Another prospective business on Loça’s radar is creating a local service branch in cooperation with a South Korean marine air conditioning company. Mr. Çetin said they hoped to “fill a gap in

Turkey”. He also mentioned the commented on Far Eastern trend and said “Far East has recently started rising and is set to become a hub for such production. The company we are cooperating is actually maker of such equipment who can lend us the equipment and valuable know-how”. Mr. Çetin indicated that Far Eastern components could be very expensive to service and maintain for vessels operation here due to long distances and their branch could help reduce costs up to one-thirds.

YOUTHFUL INSIGHT

Turkish Marine Post

VBG at talks for floating dock

hipping investor VBG recently added yacht and ship building to its portfolio of maritime investments, consisting of ownership and operations. Its Yalova nased shipyard succesfully manages newbuilding and repair projects, whilst the yard apparently is more inclined to emphasize the latter as a floating dock puchases is reportedly underway. VBG Holdings’ board member in charge of shipbuilding Mr. Musab Geylani Kadayıfçıoğlu, revealed plans to acquire a floating dock with 170 x 40 meter dimensions, which is large enough to easily accomodate a handysize. Meanwhile the yard is, for the time being, busy with yacht and ship repairs as well as newbuildings.

New yacht designs roll off The shipyard is among the few Altınova yards to feature luxurious motor-yachts as well as serious

shipbuilding projects. A recent addition to hit water in June is the Azzurro 135, a 40 meter super yacht designed by Alpson Yachts and built by the Holdings’ yacht subsidiary VBG Super Yachts. VBG has been in the yacht building business for a while and previously introduced predecessor series of the Azzurro line, Mr. Kadayıfçıoğlu conveyed. Next step: LPG? Mr. Kadayıfçıoğlu also mentioned VBG’s short and medium term expansion plans in shipping explaining that a shallow draft 1,000 dwt canal ferry is already under construction at the yard and talks for a live-stock carrier for Greek interests is still going on. “We also plan to build a 7.000 dwt chemical carrier as an addition to our 4 vessel fleet consisting of two 5.850 and 20.000 dwt twins” he said adding that the

Youthful perspective Mr. Musab Geylani Kadayıfçıoğlu was born in 1985. After graduating from Fatih College in 2003, he enrolled in Bilgi University which he completed in 2010. The delay was due to his long stay in the USA to improve his language skills for a year and a half. He resumed Bilgi in 2005 and graduated in the following 5 years. He was immediately given a chair at shipyard’s board along with his elder brothers to guide him, however he is not “new” in business as during high school he was involved in other enterprises of the group. Mr. Kadayıfçıoğlu believes diversified business structure provides additional financial comfort and that institutionalization is “a key to develop marketing strategies”. He says, “Industry needs to realize that demand oriented production is the only viable option for competitiveness and to achieve that we have to take things on a more institutional level. Marketing, publicity and brand management as well as production planning could only be handled this way.”

INTERVIEW

Turkish Marine Post

Turkish Lloyd steady on IACS course Chemical tanker success to inspire next generation projects TLV’s activities span neighbouring countries consisting mainly of Syria as well as other Middle Eastern and North African countries, however current emphasis is apparently on military projects. Professor Insel foresees that Turkish shipyards, “emboldened by the bright past chemical tanker successes, will repeat their glorious days with complicated projects”. According to him, next step should be studying dynamic positioning, deep sea equipment, underwater operation and off-shore technologies and focussing on RO-RO, small passenger vessels and ferry projects.

urkish national classification society Turkish Lloyd Association (TLV), Paris MoU’s 6th best performer for the third consecutive year and a regular of

the white class list, advanced to second stage in the meticulous process of IACS (Internal Association of Classification Societies) membership. Anticipated to take at least two years fraught with

intense audits based on a new set of criteria, this stage will lead to the long coveted goal of full membership, association hopes. TLV has been drawing attention as one of the very few Non-IACS societies to enter the Paris MoU top performers list for the classification societies, and the only one making it into the top ten list, clinching to 6th seat among the giants. The institution’s good track record cemented with other strict prerequisites that have also been met, persuaded the IACS Council to start membership negotiations with Turkish Lloyd with a declaration dated January the 14th. TLV’s President Professor Dr. Mustafa Insel, estimated that from now on at least two years will pass until IACS can take a final decision, however he is not plaintive. “What genuinely matters for us, rather than expediting the process, is to be duly certified via correct procedures, whereby our quality of service and eligibility will manifest themselves in IACS’s assessments” he said. Shift in policy paves way for TLV IACS’s previous admission procedure involved a hard to achieve a total of 8 million gross tonne class tally which “tackled most candidates from the very start”. The association’s application procedures were brought before European Commission as a breach of competition rules during 2008. Consequently IACS was urged to introduce a new set of rules governing membership that involved a more “qualitative” approach, principles of which should be determined by an independent supervisory body. The new rules, introducing a dual stage membership application process, were implemented on the 1st of January 2011. These new criteria mandates

that the candidate should be independent from owners, yards, suppliers or the governments; it should be developing, publishing and researching its own authentic rules in addition to following unified rules mutually developed by all IACS members; it should also supervise and document building stages as well as employ sufficient number of surveyors to inspect vessels at service. İnsel says membership “could take much longer” According to Professor Dr. Insel, the second stage calls for the candidate to be audited by an independent institution and be granted ISO 9000 and other certifications. This entails further teething problems as there appears to be no organisations besides other classification societies to carry out this task, in contrary to IACS requirement that it should not be so. “It could be SGS, BSI or KEMA however they so far have not been engaged in shipping related businesses.” he points out and adds that the membership thus should not be expected in short term. Professor Dr. Insel also noted that it is not seen as a problem in TLV’s perspective as long as “an adoptive systematic is applied” Slovakian cooperation ends up curtailed Turkish Lloyd 4 years ago set out to become an EU recognised organisation in cooperation with Slovakia upon the country’s suggestion which unexpectedly culminated in the suspension of studies as the criteria for the process demanded a Member State’s endorsement, Professor Dr. Insel conveyed. “It is a frustration to see the progress come to an abrupt halt, but we have nevertheless made quite a progress, which is evident as per Paris MoU performance lists” he said.

Turkish Marine Post

MARINE EQUIPMENT

Marinsu warns on tight noise level regulations nternational Maritime Organisation (IMO) has been known to pay particular interest to noise levels onboard vessels as researches indicate that noise is not only a mere comfort issue and rather it poses a serious health risk for seafarers. Marinsu Insulation’s partner thinks the organization will soon thighten its grip on the issue and extends the rules to cover ships in service. Shipbuilding industry has seen the issue of onboard noise levels rise to importance since early 2000’s. As IMO presses new directives for noise reduction onboard, yards and owners face new design questions. Marinsu Insulation, a Tuzla based engineering company specialized in heat, water and noise insulation, is among the companies that strive to keep up with IMO requirements. Managing Partner Mr. Cihat Turgut said that shipbuilders are trying to develop and determine new ways to set noise levels on board ships below allowed limits yet “IMO still does not seem

convinced as it refers to onboard noise whenever it sees fit”. He warns that although the organization is going easy with ships already in service, it might be due to the fact that existing shipowners’ income would not permit such expenditure. “We can not assume it will be all the same” he said. IMO uncompromising on noise levels Mr. Cihat explains the nature of noise reduction rules with two different approaches: preventing the impact of noise to people outside the vessels, and more importantly minimizing its effects on seafarers onboard. “The best way to dampen vibration sourced noise or the airborne noise is to insulate or control the noise at the origin” he suggested emphasizing the importance of choosing the right machinery onboard. He explained that due to the different noise regulations varying per country, IMO set its own standards for vessels.

Marinsu not a mere distributor Marinsu began insulation applications in 2007 and introduced full insulation package systems to the industry. Company rapidly became a wide range provider as its customer portfolio has since spanned marine as well as industrial oriented clientele. Marinsu is also involved in the military projects now in vague around Tuzla. “We provide engineering services on a consultancy basis rather than simply marketing a product line” Mr. Cihat Turgut explained and said that Marinsu’s solutions involved “valuable know-how developed with experience earned in due course of services”. Marinsu also holds distribution contracts of some well-known international brands, which apparently also helped build up a its client base.

MARKET

Turkish Marine Post

ISTFIX Coaster Market Report stanbul Freight Index (ISTFIX) experts provided a market report exclusively for Turkish Marine Port focusing on coastal traders between 2.000 to 12.000 dwt capacity operated across Mediterranean and Black Sea. In this special report, ISTFIX compares last quarter of 2010 with the first quarter of 2011 and sets an outlook for the coming months. During the previous year, lowest daily revenue for various coaster sizes ranging from 2000 dwt general shortsea cargo carriers to 12.000 dwt minibulkers varied between 1.350 and 4.250, while highest earnings hovered around 2.250 to 5.600 Usd per day. 2010 was in many ways a better year than 2009, especially as freight rates for the given scale improved 15 percent. While European negative growth slowed down freight rate improvement, West Africa and Black Sea tonnage demand offset the effects of Europe. Istanbul Composite Freight Index took off from 700 levels to low 800’s during seasonally high shipping period: the March-June term. The year ended more or less in a balance, except for the bad harvest in Russia and following ban on exports, which until now has effectively reduced stable wheat cargo supply to Black Sea shipping. This was yet again partially offset with coal shipments, driven by fears of a frigid winter coming. Lagging demand in Europe forced Continent and Baltic operated ships to encroach Mediterranean market where they had the age and

specification edge over the relatively older fleet. Owners and operators were hoping for the signals of a subtle recovery which was to a large extent pinned to a possible lifting of wheat export bans and quotas pressed by Russia and Ukraine. They were also upbeat on steel shipments that had begun picking up during the last months of 2010, which would also trigger scrap shipments on the background. Algeria, Libya, Egypt, Turkey and Syria were expected to further grow, dragging along a remarkable foreign trade potential which would ideally be handled via smaller tonnage vessels. To sum up, native Mediterranean and Black Sea tonnage, faced many challenges during 2010 however had modest expectations for the coming year...but the worst scenario had yet to be staged. In a brief month, Arabian world was embroiled in deep political upheaval starting from Egypt and rapidly spreading among other Arab states. The result was a serious downturn affecting North African and Middle Eastern bound cargo movements. A significant amount of cargo vanished from the market leaving ships and owners in panic. Turmoil also strained oil markets. Prices increased by 18 percent since the beginning of February, with the Brent easily surpassing 100 USD per barrel levels. Cost of bunkers almost immediately responded with equivalent price hikes, further

exacerbating the situtaiton for already troubled owners. Istanbul Composite Freight Index took a plunge from 678 point levels to 580, a 15 percent fall that took away the gains of the previous year. Asset prices were also subject to significant drops. Younger vessels saw 10 to 20 percent value drops whilst older vessels lost almost 30 or a staggering 40 percent in value. Although higher scrap prices are expected to accelerate disposals, some experts claim that all vessels built before 1980 should be de-commissioned one way or the other, before others could heave a sigh of relief. Outlook Owners and brokers eye Russia and Ukraines’s comeback to wheat markets, which is not a very remote possibility as both countries

continuously post encouraging crop data. Russia’s spring sowing, which has only recently commenced hinted a good harvest and raised hopes for the next one. If Russian agricultural bodies are convinced that an altogether 85 million tonnes of grain harvest is possible, Black Sea will be back in wheat shipment business. Intra-mediterranean wheat movements are also correlated with North African demand, which should resume once peace and order is restored throughout the region. Same goes for steel, cement and other construction related material, which will be much sought after especially in the heavily ravaged Libya. Once the global confidence in the regions political stability is reinstated, oil prices should see declines which should be followed by bunker price drops.

2010 average earnings: a glimpse of hope?

TCE Rate comparison DWT

Rates end Sept 10

Rates end Feb 11

2.000-4.000

1500

1420

4.000-6.000

2450

2300

6.000-8.000

3320

3300

10.000-12.000

4770

4675

TONNAGE

LOW

HIGH

Average

2000 / 4000

1350

2250

1800

4000 / 6000

2150

3350

2750

6000 / 8000

3300

4350

3825

8000 / 12000

4250

5600

4925

ISTFIX Composite Index: How the jump turned to be a slump...

ODEK

Turkish Marine Post

Members of Oruç Reis Maritime Society ODEK MISSON By preparing a platform that would bring together the agents of Turkish and global maritime industry, our organization committed itself to I Create new opportunities for Turkey's Maritime Industry I Improve its global competitive capacity I Raise its current share in the world maritime trade I Contribute to the country's development In order to fulfill our duty, fueled by an innovative attitude, we will continue to invest in technology and people while constantly striving to renew and develop our services.

ACENTELİK Artı Değer Uluslararası Bağımsız denetim ve YMM Aş. Yetkili: Murat Erişti www.jhiturkey.com Beşerler Denizcilik Yetkili:Salih Beşer www.beserlergroup.com İstanbul 34 Yetkili: Suat Dincelek www.istanbul34.com.tr Kutup Shipping Yetkili: Ahmet Topal www.kutupshipping.org Medmarine Holding Aş Yetkili: Recai Hakan Şen www.medmarine.com.tr Metro Gemi Yetkili: Fırat Aka www.metroship.com Pelikan Denizcilik Dış.Tic.Ltd. Yetkili: Ali Polat www.pelikanshipping.com Solna Denizcilik Yetkili: Arınç Kösel ARMATÖRLÜK Canbaz Denizcilik Yetkili: Obahan Canbaz www.canbaz.com.tr Ceren Denizcilik Yetkili: Emrah Erence Cetinkaya Shipping Yetkili: Mecit Cetinkaya www.cetinkaya-group.com Dadaylılar Shipping Group Yetkili: Metin Şener www.dadaylilar.com Derin Denizcilik Yetkili: Erkam Yıldırım www.derinshipping.com DMV Shipping Yetkili: Deniz Ergin www.dmvship.com Eydo Denizcilik Yetkili: Vehbi Koç

Lider Denizcilik Turizm Eğt. Dan. San. Ve Tic. Yetkili: Metin Güre www.liderltd.com M&M Marine İstanbul Yetkili: Mehmet Akyol www.mmmarine.net Özsay Denizcilik Yetkili: Ömer Kalkavan Web Adresi: www.ozsay.com Transal Denizcilik Yetkili: Huseyin Altinbas Web Adresi: www.transal.com.tr DANIŞMANLIK NSN Law Office Yetkili: Nedret Unlu www.nsn-law.com Omni Sigorta ve Reasürans Yetkili: Ufuk Teker www.omnicsl.com/tr Orionasya Denizcilik Yatırım Holding A.Ş. Yetkili: Salih Zeki Çakır www.istfix.com Korean Register of Shipping Yetkili: Osman Kolay www.krs.co.kr Vera Denizcilik Yetkili: Mustafa Dalgin www.veradenizcilik.com DENİZ TAŞIMACILIĞI İstanbul Deniz Otobüsleri Yetkili: Ahmet Paksoy www.ido.com.tr Arda Denizcilik Taş. Yetkili: Senol Naiboglu www.ardaship.com Bromarine Denizcilik San ve Tic Ltd Şti. Yetkili: Mehmet Altun www.bromarine.com Bulkanlantik Yetkili: Hasan Oktay www. bulkatlantic.com Denizsan Şirketler Grubu Yetkili: Mustafa AKGÜL www.denizsan.com

Hay Ships www.hayships.com

Dentur Avrasya Yetkili: Şenol Morgül www.denturavrasya.com

Horizon Shipping Yetkili: Fatih Çalışkan www.horizonships.com

Deval Transport Ltd Yetkili: Harun Deval www.devalshipping.com

Kopuzlar Emiroğlu Denizcilik Yetkili: Abdülkadir Kopuz

Dogruyol Kardesler Dnz. Yetkili: Uğur Doğruyol

Namar Denizcilik ve Taşımacılık Yetkili: Sedat Naiboglu www.namar.com.tr

Ufuk Mayna Denizcilik Ltd. Şti. Yetkili: İlhan İşbilen www.ufukmaynadenizcilik.com

Transbosphor Denizcilik Nakliyat Yetkili: Mustafa Can www.transbosphor.com

GEMİ KİRALAMA ve BROKERLİK

VBG Holding Yetkili: Geylan Kadayifcioglu www.vbgholding.com EĞİTİM Akademi Denizcilik Dan. Eğt. Yay. Tic. Ltd. Yetkili: Yusuf Sertkaya www.akademidenizcilik.com Armada Eğitim Ve Belgelendirme Danışmanlık Mühendislik Yetkili: Kemal Battal www.armadadanismanlik.com GEMİ İNŞA ve TAMİ-BAKIM AG Gemi Yapı Sanayi Tic Ltd Şti Yetkili: Abdullah Dede www.aggemi.com Alyans Mühendislik Gemi Mak. San. Tic. Ltd. Şti. Yetkili: Metin Yazıcoğlu www.alyansengineering.com Burç Denizcilik Yetkili: Mahmut Yeler Gisan Gemi San ve Tic A.Ş. Yetkili: Vedat Parlar www.gisanship.com Loça Müh. Gem. Mak. ve Pls. Gıda San. Tic. Ltd. Şti Yetkili: Hidayet Çet www.locamuhendislik.com Marinsu İzolasyon san. Tic. Ltd. Yetkili: Cihat Turgut www.marinsu.net Meryem Ana Deniz Ticaret Ltd. Şti. Yetkili: Mahmut Turan Orimar Teknik Hizmetler San.ve Tic. Ltd. Sti. Yetkili: Arif Budak Özata Yat İnşa Çekek Bakim Onarim San Tic Ltd Şti Yetkili: Özdemir Ataseven Sefine Tersanesi Yetkili: Çetin Seven Web Adresi: www.sefine.com.tr Selay Shipping Yetkili: Fuat Çolak www.selaydenizcilik.com

Eksen Gemi Kiralama Yetkili: Erhan Gürsoy www.eksenship.com Naturel Denizcilik ve Taşımacılık Tic. Ltd. Şti. Yetkili: Buhari Kaçan Web Adresi: www.naturalship.com Pacmar Denizcilik Ltd Şti Yetkili : Sıtkı Kök www.pacmar.com.sg GEMİ KURTARMA Solar Gemi Kurtarma Hiz A.Ş. Yetkili: Murat DALYAN www.solarsalvage.com GEMİ YAN SANAYİ Dalsan Yetkili: Nusret Coskun www.dalsangrup.com Ekoner Enerji Sanayi ve Tic. A.Ş Yetkili: Cihat Ciğer www.ekoner.com.tr Elta Gemi Yetkili : Erkan Coşgun www.eltagemi.com Ensar Gemi Yan Sanayi Ltd Şti Yetkili: Özkan Göksal www.ensargemi.com Gürdesan Gemi Makina San Tic A.Ş. Yetkili: Mustafa Gürsoy, İsmail Gürsoy www.gurdesan.com.tr Malivor Elektrik-Elektronik Otomasyon Ltd.Şti. Yetkili: Taner Şişmanoglu www.malivor.com Teksan Jenaratör Yetkili: Özdemir Ata www.teksanjenerator.com.tr Soybaş Çelik Yetkili: Ahmet Soybas www.soybas.com Yeke Denizcilik A.Ş. Yetkili : Ertan Özyardımcı www.yekedenizcilik.com.tr