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Diversifying our Economy, one Ship at a time©... Hello S&R Stakeholders, T&T NATIONAL CONSULTATION HELD TO DISCUSS SOUTH WEST PENINSULA A national consultation on the development of the South West Peninsula Growth Pole region, was held from on Friday July 25, 2014 at Paria Suites, La Romaine. The consultation was hosted by the Economic Development Board (EDB), of the Ministry of Planning and Sustainable Development. Minister of Planning and Sustainable Development Dr. Bhoendradatt Tewarie was the main speaker at the event. There were presentations from the private sector, from Town and Country Planning Division of from the Ministry and the Economic Development Board. L-R: Mr. Bruce Mackenzie – EDB Member, Senator Dr. the Honourable Bhoendradatt Tewarie - Minister of Planning & Sustainable Development, Dr. Rikhi Permanand – Executive Director EDB/CCI, Ms. Marie Hinds – Assistant Director – Town & Country Planning Division, Ministry of Planning and Sustainable Development, Government of the Republic of Trinidad and Tobago.
The objective of the consultation is to initiate the development of an implementation plan for the South West Peninsula in keeping with Government’s Medium Term Policy Framework for concentrated economic development of the country using a growth pole strategy. These plans include the establishment of a Ship Repair yard and a Transshipment port at La Brea, South-western Trinidad.
TRINIDAD AND TOBAGO SHIPBUILDER & REPAIR NEWS TURNS 60 Thanks to our S&R Advertisers, Industry Stakeholders and Magazine Staff for their continued effort. You keep us going & growing! We look forward to hearing from you and thanks for the many letters/emails of congratulations, received from some of our 2,500+ subscribers. To view our S&R publication archive, please click: http://issuu.com/shipbuildingandrepair
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RIMPAC 2014: THE WORLD'S LARGEST NAVAL EXERCISE COMES TO AN END Held every two years by the Commander, U.S. Pacific Fleet (PACFLT), RIMPAC 2014 is a multinational maritime exercise that takes place in and around the Hawaiian Islands, USA. This year’s RIMPAC exercise, the 24th in the series that began in 1971, is scheduled from the 26th June to the 1st August 2014, with an opening reception scheduled for 26th June and closing reception on the 1st August. Twenty-two nations, 49 surface ships, 6 submarines, more than 200 aircraft and 25,000 personnel participated. Units from Australia, Brunei, Canada, Chile, Colombia, France, India, Indonesia, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, the People’s Republic of China, Peru, the Republic of Korea, the Republic of the Philippines, Singapore, Tonga, the United Kingdom and the United States participated. RIMPAC is a unique training opportunity that helps participants foster and sustain the cooperative relationships that are critical to ensuring the safety of sea lanes and security on the world’s oceans.
An amphibious assault vehicle approaches the ‘USS RUSHMORE’ after small boat operations exercises on the 8th of July, 2013 at RIMPAC 2014.
Do continue to enjoy the summer! Sincerely, T&T Shipbuilding and Repair Cluster.
Wilfred de Gannes. Deputy Leader. Page 3 of 31
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PANAMA FIRST GATES MOVED TO NEW LOCKS The Panama Canal expansion project has passed another important milestone with the transfer of the first 3,000-tonne steel gates to the new Atlantic side locks complex.
A ship arrives with new rolling gates for the Panama Canal's third set of locks for the canal's expansion project at Limon Bay, Gatun, Panama.
Eight of the 16 rolling gates that will be used for the new locks are already in Panama. The remaining eight will arrive in two separate shipments from the manufacturing site in Italy. "The transfer is a very important operation because it involves the first movement of the gates from the special dock where they were unloaded to the lower chamber of the new locks," said Panama Canal Authority (ACP) administrator Jorge Quijano.
The gate system costs US$547.7 million, including fabrication, transportation, and installation.
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Today’s bigger cargo vessels can’t pass through the Panama Canal. The post-Panamax locks can accommodate ships with nearly three times the capacity.
He added that the process was carried out following rigorous safety measures to ensure the gates could be moved to the dry lock chambers using the pavement ramp built for the purpose. The other gates will begin their journey from the temporary unloading dock to the dry lock chambers so that ACP will be able to use the dock for the arrival of the remaining lock gates.
*Twenty-foot equivalent unit is the cargo capacity used for measuring capacity in container ships.
The US$5.25 Billion expansion programme, which will double the canal's capacity, is currently 77% complete. It is expected to open in the first half of 2016. Meanwhile, Panama is gearing up for celebrations to mark the centenary of the canal's opening on 15th August, 1914. It had been hoped the expansion would open 100 years to the day, but delays in finding the right concrete mix and a payments dispute delayed the project. ***************
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NICARAGUA APPROVES $40 BILLION CANAL ROUTE A Nicaraguan committee approved a proposed route for a $40 billion shipping channel across the Central American country that would compete with the Panama Canal.
Rough sketch of the route from The Brito River to Punta Gorda via Lake Nicaragua.
The committee of government officials, businessmen and academics approved a 172 mile (278 km) route from the mouth of the Britoriver on the Pacific side to the Punto Gorda river on the Caribbean that was proposed by executives from the HK Nicaragua Canal Development Investment Co Ltd (HKND Group).
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The Hong Kong-based HKND group, which is leading the project, is headed by Chinese lawyer Wang Jing, who also heads Chinese company Xinwei Telecom Enterprise Group. The proposed canal would pass through Lake Nicaragua, Central America’s largest lake, and will be between 230 metres and 520 metres (755 feet to 1,706 feet) wide and 27.6 metres (90 feet) deep, said HKND engineer Dong Yunsong. The proposed route still faces environmental and social impact studies that could recommend some changes to the plan, but those studies should be finished later this year to allow work to begin by December, said committee member Telemaco Talavera. Opponents of the plan are concerned about the canal’s effect on Lake Nicaragua, an important fresh water source for the country, as well as the impact on poor communities. The plan is to finish the canal in 2019 and begin operations in 2020, Talavera said. The proposed channel would be more than three times longer than the 48-mile (77-km) Panama Canal, which took the United States a decade to build at the narrowest part of the Central American isthmus. It was completed in 1914. ***************
“Disneyland is a work of love. We didn't go into Disneyland just with the idea of making money.” - Walt Disney
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PANAMA FLAG BOSS DEFECTS TO LIBERIA In a major leadership switch for the world's top flag states, former Panama Registry boss Alfonso Castillero has joined the Liberian Registry.
Alfonso Castillero, former Director-General of the Panama Registry, has joined the Liberian Registry.
Castillero had been director general of Panama's merchant marine and head of the registry since 2008. He presided during a period when Panama instituted strict quality guidelines that brought the registry to the Paris MoU white list after previously being relegated to the black list. Castillero personally played a central role in the Panama flag's quality restoration process. In a statement on his appointment as vice president of the Liberian Registry, Castillero said on 28 July that he parted with his Panamanian colleagues "on extremely good terms". "Shipping is a highly competitive - and, on occasions, political - industry," Castillero continued. "I am leaving what is currently the world's largest ship registry to join the world's second largest registry. But it is not necessarily about size. It is about quality. Change and renewal is part of the process of continuing improvement." In his new role, Castillero reports to Liberian Registry CEO Scott Bergeron, who commented: "It is not every day that the opportunity arises to appoint somebody of his [Castillero's] experience." ******************* Page 12 of 31
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EXXONMOBIL’S ANTWERP REFINERY IS PRODUCING A WHOLE NEW TYPE OF BUNKER FUEL ExxonMobil is introducing this new fuel to the commercial shipping sector following successful tests which were carried out on board Wallenius Wilhelmsen’s ships.
ExxonMobil’s refinery in Antwerp, Belgium.
“It used to be refinery feedstock, but now it’s being used as a finished product,” commented lain White, Field Marketing Manager for ExxonMobil Marine Fuels & Lubricants in reference to his company’s ultra-low sulfur HDME 50 marine bunker fuel. With extremely tight limits on sulfur emissions regulations coming into force next year, ship owners are left with three primary options – burn ultra-low sulfur fuel, switch to LNG, or install an emissions scrubber. Considering the significant capital expense incurred on the latter two options, ultra-low sulfur fuel (ULSF) is being used extensively, but it has its own challenges particularly with regard to temperature. When sailing into an ECA, such as the one off California for example, ships switch from burning heavy fuel oil to ultra-low sulfur distillate fuel. In doing so, the fuel system is required to deal with a huge temperature switch as heavy fuel oil is delivered to the engines at around 135 to 140 deg C and distillate is unheated. Page 15 of 31
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White notes that switching fuels has to be done very carefully as a result of this temperature difference. “Records show that 30 to 40 ships per year on average have lost propulsion off California as a result of thermal shock from improper fuel switching procedures.” He hopes his company’s HDME 50 is the answer to this problem, particularly in the European ECA.
HDME 50 is not a distillate fuel, but shares some of the best properties of both distillate fuel and HFO. Like HFO, it needs to be heated in order for it to work, has high lubricity and lower volatility which makes for safer operations, but at the same time, it burns extremely clean like distillate fuel. Because it’s heated, there’s also no issue when it comes to thermal shock. Will this new HDME 50 fuel be available globally? “Not in the immediate future,” notes White. The ExxonMobil refinery in Antwerp is the only facility globally that is producing it. However, Antwerp also happens to be firmly planted in the European ECA, the major source of demand for such a product. ***************
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INTERNATIONAL NEWS Great Lakes Shipyard now licensed builder for Damen - July 4, 2014 Great Lakes Shipyard and Damen Shipyards Group have entered into a five-year partnership authorising Great Lakes Shipyard as an official builder of Damen designs. Great Lakes Shipyard will now offer a wide range of Damen designs, including Stan-series tugs, barges, pilot boats, skimmers, dredgers and high speed craft in the port/harbour segment, as well as a range of ferries, military vessels, and trawlers and research vessels. The deal also allows Great Lakes to tap into Damen’s diverse OSV design portfolio, including deep sea anchor handlers, offshore wind farm vessels, and fast crew supply vessels. The agreement also provides for Damen technical services, including personnel for onsite management and supervision on any and all construction projects.
Powerful Dam Stonewalls Coal Shipments to China - July 7, 2014 Record production of hydropower from China’s Three Gorges and newer dams is displacing so much coal, that rates to transport it have plunged to record lows, roiling the shipping market. Daily earnings for Panamaxes, vessels that are about 750 feet long and get most of their spot cargoes from hauling coal, slumped as much as 76 percent this year, getting to within US$26 of an all-time low. China started hydroelectric plants this year with enough generation to replace 26 million tons of coal, or about 370 cargoes. The extra power means less imports and weaker freight rates. Panamaxes earned US$4,923 a day, according to data from the Baltic Exchange in London. Rates fell as low as US$3,362 at the end of June. The all-time low was US$3,336 in September 2012.
E.R. Offshore Orders New PSV from VARD - July 15, 2014 The 4,000 dwt VARD 1 08 platform supply vessel will measure 81 meters in length and 18 meters wide. Illustration courtesy VARD Holdings. E.R. Offshore, the offshore arm of Hamburg-based ship owning and management firm E.R. Schiffahrt Group has awarded VARD a contract for the design and construction of a new 1 08 design platform supply vessel. The vessel will have a total length of 81 meters, beam of 18 meters and a cargo deck area of 830 m2. Delivery is scheduled from VardVung Tau in Vietnam in 2Q 2016. E.R. Offshore has also taken over the contract for a sister vessel from Carlotta Offshore via a novation agreement. This vessel is currently under construction at VardVung Tau with an expected delivery in 3Q 2015. Page 17 of 31
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COSCO Guangdong Building 3rd UT771WP Series PSV - July 21, 2014 Construction of the Guangdong company COSCO Singapore CHELLSEA third ship built offshore platform supply vessels UT771-WP (N605) was successfully started on July 19, 2014. The total length of 85.7 m platform supply vessels, width 18 m, depth 7.8 m, deck area of about 840 square meters, load up to 4400 tons, to meet the requirements DYNPOS AUTR dynamic positioning capabilities. Up to now, Guangdong COSCO Shipyard is listed to undertake four CHELLSEA same type of PSV construction orders.
U.S. Places Sanctions on Russia Shipbuilder - July 29, 2014 President Barack Obama escalated U.S. economic sanctions against Russia for its aggression against Ukraine, but dismissed suggestions the growing chill in U.S-Russian relations marked the start of a new Cold War. The United States and the European Union, in a carefully coordinated action, announced targeted new sanctions against Russian banks, energy and defense firms. It was the West's most serious response yet to what it calls Russian instigation of and continuing support for the separatist uprising in the east and the shootdown of a Malaysian passenger jet on July 17 over eastern Ukraine. Five of the six largest state-owned banks in Russia are now under U.S. sanctions. Also targeted was United Shipbuilding Corp, a shipbuilding company based in St. Petersburg, in a move that freezes any assets it may hold in the United States and prohibits all U.S. transactions with it. The Commerce Department classified United Shipbuilding Corp as a defense technology company.
Japan Offers $700M for Brazilian Shipbuilding - July 29, 2014 Japan’s Prime Minister Shinzo Abe touted the success of his economic policies on a visit to Brazil and said it was time for the two nations to expand their trade and investment partnership. “Japanese companies are eyeing Brazil with great expectations,” he said later at a deal-signing meeting with President Dilma Rousseff. Brazil’s state-run oil company Petroleo Brasileiro SA signed up for a US$500 million loan from Mizuho Bank Ltd to build eight hulls that will be converted into floating oil platforms for deepwater oil production. Page 18 of 31
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CHINESE SHIPS MAKE FIRST RIMPAC NAVAL DRILL APPEARANCE IN DECADES The Rimpac drills offer China and the U.S. a non-confrontational opportunity to learn more about each other’s capabilities.
China’s only aircraft carrier, the refurbished ‘LIAONING,’ which was commissioned in September 2012, did not join the Rimpac drills.
After 43 years of watching the world’s largest multinational naval exercises take place off Hawaii, China has the second-largest fleet at the U.S.-led drills this year, offering it a step toward the great-power parity it seeks in the Pacific. China’s high visibility at the five-week operations underscores a shift in foreign-policy stance away from former leader Deng Xiaoping’s maxim to “hide your brightness, bide your time.” President Xi Jinping is restructuring the military to better enable it to fight wars, and has deployed vessels into areas of the East and South China Seas disputed with neighbours. The Rimpac drills, as they’re known, offer China and the U.S. a non-confrontational opportunity to learn more about each other’s capabilities, a contrast with encounters that have included a near-collision with an American cruiser in December. While China’s four People’s Liberation Army ships have been welcomed, they have also been kept out of core war games and the 22-nation exercise is led by the U.S. along with allies Australia, Japan and Canada, illustrating the difficulties in forging closer military ties. Page 19 of 31
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“The PLA sending four ships to Rimpac is intended to show China’s growing maritime prowess in the region and its increasing capabilities to handle regional maritime affairs,” Li Jie, a Beijing-based senior researcher at the Chinese Naval Research Institute, said. “It also serves as a subtle warning that the U.S. would be better off to not encourage what would be harmful to Chinese interests in the region.” Missile Destroyer China has sent two of its top ships to the Rim of the Pacific exercises from June 26 to Aug. 1: the missile destroyer Haikou and the missile frigate Yueyang. It also dispatched the supply vessel Qiandaohu, the Peace Ark hospital ship, two helicopters and a dive unit. Secrecy still shrouds much of China’s military hardware, meaning the U.S. may learn more from observing Chinese vessels close up than the other way around, according to Bernard Cole, a former U.S. Navy officer who teaches at the National War College in Washington. “Just going aboard one of their ships for a cocktail party for a U.S. observer who knows what he’s looking at can be very educational,” Cole said by phone. “It’s familiarization. I don’t want to call it spying.” China’s only aircraft carrier, the refurbished ‘LIAONING,’ which was commissioned in September 2012, didn’t join the drills. The U.S. has a total of 21 ships taking part, including the ‘USS RONALD REAGAN’ aircraft carrier. France, Mexico China won’t participate in combat exercises at the event, Lieutenant Lenaya Rotklein, a public affairs officer for Rimpac, said by e-mail. Before the drills began, China’s navy requested to train for opposed boardings, such as of a hijacked ship, yet the U.S. declined, according to Rotklein. It “was not consistent with the multilateral training objectives” of the task force China is part of,” she said. China will participate with a group of ships from France, Mexico and the U.S. Navy in maritime security operations that include counter-piracy, gunnery and search-and-rescue, she said. On July 10 China participated in a simple gunnery exercise that includes shooting large caliber rounds at a large target known as a “killer tomato” and firing practice at a towed target, she said. The fact China cannot take part in the core exercises “reflects the fact that psychologically the U.S. is still guarded toward China,” said Ni Lexiong, director of the Sea Power and Defense Policy Research Institute at the Shanghai University of Political Science and Law. “It’s very hard for the U.S. to make a judgment over whether in the future China will be a friend or an adversary.”
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Disaster Warning The U.S. National Defense Authorization Act enacted in 1999 prohibits the Secretary of Defense from authorizing military-to- military contact with the PLA if it would create a national security risk due to an inappropriate exposure in certain areas, such as nuclear operations and reconnaissance missions. The U.S. and China vowed to improve military cooperation during the two-day Strategic and Economic Dialogue between the countries in Beijing that ended July 10. President Xi opened the meeting with a speech saying that any conflict between the two countries would be a disaster for the world. Five days later the U.S. Navy’s chief of naval operations, Admiral Jonathan Greenert, visited Beijing for talks with China’s navy commander Wu Shengli, according to the official Xinhua News Agency. While China’s participation is unlikely to affect its more assertive policy on the South China and East China Seas, it will increase trust with the U.S., Cole said. China’s navy lacks significant international experience, he said. Reduce Fears Involving China will reassure Southeast Asian countries that the U.S. is willing to engage with China and also reduce fears among leaders in Beijing that it seeks to build an anti- China coalition, according to Felix Chang, a senior fellow at the Philadelphia-based Foreign Policy Research Institute. “That, in turn, makes it easier for those Southeast Asian countries to see the U.S. as a positive and stabilizing power in the region,” he said. The U.S. rebalance to the Asia-Pacific is based on cooperation and collaboration which means it is imperative that navies work together, Admiral Harry Harris, commander of the U.S. Pacific Fleet, said in a 1st of July statement. “As the world’s economic center of gravity shifts rapidly toward the Indo-Asia-Pacific, we also note the increasing risks in the region,” he said. “I think it’s important to note that by simply attending Rimpac, every nation here is making the bold statement that we must improve multinational military cooperation despite disagreements.” Greater Transparency China has called for the U.S. to not take sides in maritime disputes. At the same time, its navy and coast guard under President Xi have increasingly sought to secure the upper hand in territorial disputes against U.S. allies.
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In 2012 China successfully assumed control of the Scarborough Shoal, an area previously overseen by the Philippines. Chinese ships and coast guard vessels regularly patrol waters claimed by Japan around disputed islands in the East China Sea. The Chinese military is keen to use the exercise to demonstrate greater transparency, after being criticized by the U.S., the Chinese Naval Research Institute’s Li said. China can also learn from the U.S. about advanced weaponry technology such as drones, he said. China shouldn’t think too romantically about military ties with the U.S, Colonel Liu Jiangping wrote in a June 26 editorial in the state-owned Global Times newspaper. “China should maintain an attitude of: on the one hand peace, on the other hand combat, and not to compromise or retreat,” he wrote. “Only by increasing our military strength and realizing the planned modernization of the military can we increase our bargaining chips in military dialog with the U.S.” ***************
MY FAVORITE MARITIME MOVIE LIFE OF PI (2012) Rating – 8.1/10 The movie narrates an incredible story using the most beautiful special effects and great actors. It is more that a survival story and it is not about friendship. This story is about faith. Director Ang Lee use all the tools he have to make this movie about a solitary young man not a boring one. It is narrated by both, young Pi and the Adult Pi, it uses music all the time so there is not space for uncomfortable silents and the rhythm of the scenes is fast. The result a very entertained film. The most important thing of this film is it character. It is obvious because we are seeing for almost 2 hours just one character. So it is not only important to have a great character that appeals to the audience feelings, but to have an actor that portray this person the right way. Suraj Sharma was brilliant as Pi. He can make happy scenes as equal as sad, desperate, hopelessness, exhaustion and anger ones. To watch Trailer, please click the following link: https://www.youtube.com/watch?v=j9Hjrs6WQ8M
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CHINESE DEALS FAIL TO AFFECT VALEMAX BERTHING Vale's recent three deals with China does not mean that its mega ships can call at Chinese ports, China's largest shipowner, COSCO.
‘MV VALE RIO DE JANIERO’ (built 2011) by Daewoo Shipbuilding & Marine Engineering.
The shipowner is not clear about the details of the three deals, but it is quite sure that they have no relation to the calling of Valemaxes to Chinese ports, according to the report by The Economic Observer. "The berthing of Valemaxes is tied to the iron ore issue, but there is no mention about iron ore in these deals, so nothing about the mega vessels," the source said. However, former Director of China's National Energy Administration Zhang Guobao stated yesterday that the recent deals between Vale and Chinese banks will expand Vale's iron exports to China and be beneficial to Chinese shipbuilding industry as well as steel sector. Zhang admitted that Valemax has brought great impact to Chinese carriers, and he suggested that both sides should work together to solve this issue. The source from COSCO stated that until a lot of issues are settled, they were "still against the berthing of Vale's mega ships at Chinese ports". China is the largest iron ore importer in the world, and around 50% of Vale's exports go to China every year. ******************* Page 25 of 31
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MARITIME INDUSTRY WEB LINKS AUSTAL - www.austal.com/ CANTREX LIMITED - www.cantrexaluminium.com/ CONRADO BEACH RESORT LIMITED - www.conradotobago.com/ COSCO GROUP - http://en.cosco.com/ COTEEL - www.coteel.com/ DAEWOO SHIPBUILDING - www.dsme.co.kr/epub/main/index.do/ EXXONMOBIL - http://corporate.exxonmobil.com/ FT FARFAN - www.ftfarfan.com/ LLOYD’S REGISTER - www.lr.org/en/ GULF SHIPPING LIMITED - www.gulfshippingltd.com MARITIME PRESERVATION LIMITED - www.maritimepreservation.net/ MINISTRY OF TRADE & INDUSTRY - www.tradeind.gov.tt/ NEW LA BREA VISION
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RIMPAC 2014 - www.cpf.navy.mil/rimpac/2014/ SHOES INDUSTRIAL SUPPLIES LIMITED - www.shoesind.com/ T&T SHIPBUILDING & REPAIR
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FOR YOUR INFORMATION LPG TANKER ATTACKED OFF TRINIDAD, CAPTAIN SHOT AND BEATEN Trinidad and Tobago’s Ministry of Transport reports in an emailed statement the LPG tanker Virgo Gas was attacked on 29 June in the vicinity of Port of Spain. According to Beverly Phillip, Director of Maritime Services at the Ministry of Transport, 8-10 men aboard three small fishing vessels boarded the ship via the stern. “The men were armed with machetes, knives, one 9mm pistol and pieces of wood. They assaulted and robbed the Master and crew members holding them captive for approximately thirty minutes.” ************************
CONTACT INFORMATION Mr. Wilfred de Gannes, Deputy Leader, T&T Shipbuilding and Repair Cluster, Post Office Box 2853, Chaguaramas, Trinidad and Tobago. Tel: +1(868) 753-6057 Fax: +1(868) 662-6326 Skype: TT SHIPBUILDING AND REPAIR E-mail: inquiries@posberthing.com Website: http://www.tts-r.com Trinidad and Tobago Shipbuilder & Repair News is edited by T&T Shipbuilding and Repair Deputy Leader Wilfred de Gannes, and published monthly by the Shipbuilding and Repair Development Company of Trinidad and Tobago Limited. This newsletter is available complimentary via email. © 2014 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Quotation(s) from the publication is allowable with appropriate credit.
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T&T SHIPBUILDER & REPAIR NEWS ISSUE #060 – JULY 2014.
www.tts-r.com SKYPE: TT SHIPBUILDING AND REPAIR
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T&T SHIPBUILDER & REPAIR NEWS ISSUE #060 – JULY 2014.
www.tts-r.com SKYPE: TT SHIPBUILDING AND REPAIR
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