Singapore 2013

Singapore www.SeaShipNews.com

A holistic guide to shipping’s centre of gravity

Market Report 2013

Taking the pulse of maritime sectors in the Lion Republic

An Asia Shipping Media publication

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Contents

Majulah Singapura 3

Linking Brad Pitt to shipping in Singapore

13 Legal debate 15 LNG hub in the making 17 Shipowners platform 21 Offshore interviews 24 Those who have just touched

4

The state of the national economy

7

Tuas shift for the port

9

How the republic’s yards are coping amidst growing competition

12 Ship finance aspirations

down

31 Shipmanagement margins squeezed

32 Choppy times for bunkering

The leading source on Southeast Asian maritime and offshore

COMMERCIAL DIRECTOR Grant Rowles grant@asiashippingmedia.com

EDITORIAL DIRECTOR Sam Chambers sam@asiashippingmedia.com

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www.seashipnews.com

CHIEF CORRESPONDENT Katherine Si katherine@asiashippingmedia.com CORRESPONDENT Jason Jiang jason@asiashippingmedia.com ECONOMIST Gary Bowerman

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DESIGN Tigersoft Pte Ltd Printed in Singapore Copyright © Asia Shipping Media Pte Ltd (ASM), 2013.

Although every effort has been made to ensure that the information contained in this review is correct, the publishers accept no liability for any inaccuracies or omissions that may occur. All rights reserved. No part of the publication may be reproduced, stored in retrieval systems or transmitted in any form or by any means without prior written permission of the copyright owner.

For reprints of specific articles contact grant@ asiashippingmedia.com.

All editorial material should be sent to sam@asiashippingmedia.com or mailed to Office 701, 9 Renmin Lu, Zhongshan District, Dalian, China 116001

www.seashipnews.com 1

Editorial

The Brad Pitt of shipping

W

hat’s Brad Pitt’s picture doing here

following the substantial growth in its shipping

instead of your ugly editor’s mug, and

sector over the past decade. However, this was not

what the hell does he have to do with

enough to persuade the audience that London

our industry? Read on!

Singapore’s rise to the top table of shipping has

had completely lost its crown, and Alan Marsh, the former ceo of Braemar Shipping Services, was able

been well detailed; an enticing blend of incentives

to demonstrate that key elements of the London

has brought thousands of maritime firms to its

market will continue to play a dominant role going

shores. Where it actually sits at the table is now a

forward.

hot topic. Has it even surpassed mighty London,

Meanwhile, the chairman of the International

home to many of the top shipping organisations in

Chamber of Shipping, Masamichi Morooka, was

the world?

adamant that London is, without doubt, “still the

London, feeling chastened by the rise of so many Asian maritime centres, got its act together

shipping capital of the world”.

Taking a sensible point of view on the debate

this September organising a highly successful

was Frontline’s Jens Martin Jensen, who stated:

shipping week. Nevertheless, Singapore was the

“It’s London and Singapore, not London versus

elephant in the room throughout the week. Much

Singapore.”

discussion focused on shipping centres and who

One of the world’s leading maritime recruitment

was top of the pile, something that quickly came

experts sees Singapore as the hottest place on the

down to a straight shoot out between London and

planet for shipping at the moment.

the Lion Republic.

Denis Petropoulos, director at Braemar

When quizzed as to which place was the most vibrant shipping centre in the world based on the

Shipping Services, said that Singapore was without

amount of HR movements, Phil Parry, chairman of

doubt the preeminent maritime centre in Asia and

UK maritime recruitment firm Spinnaker, was in no

was snapping at London’s heels. He said Singapore

doubt. “Singapore wins through as the Brad Pitt of

“has become the world’s most important shipping

shipping in the recent boom," he tells us.

centre after London”.

Nevertheless, Petropoulos had special praise

London then is perhaps the Laurence Olivier in this alternative maritime movie universe.

for the British capital. “London is not a maritime capital, London is the maritime capital,” he said.

The Institute of Chartered Shipbrokers held a

The Singapore annual

seminar on the London versus Singapore debate.

SeaShip News is the leading daily news service covering Southeast Asian

Heidi Heseltine, managing director of Singapore

maritime and offshore. This publication serves as the definitive annual

and London based specialist shipping recruitment

on how the Lion Republic is faring shipping-wise. Contained on every

firm Halcyon Recruitment, made a very strong

page is a useful timeline of key events that have shaped Singapore’s

case for Singapore being the main shipping hub

shipping year. For further daily updates check www.seashipnews.com .

www.seashipnews.com 3

Economy

Mild expansion Gary Bowerman gets caught between the bulls and the bears

A

lthough Singapore’s government has been steering the city-state’s economy towards less turbulent waters of late, its outlook

remains decidedly cautious. In August, the Ministry of Trade & Industry noted that “risks to the global growth outlook” prevent a more upbeat 2013 GDP growth forecast than 2.5–3.5%, which was slightly revised from a previously broader range of 1–3%.

That said, a sluggish first quarter suggested choppier seas ahead for an economy that has been buffeted by the icy winds blowing from European and US export markets. Singapore’s economy grew by 3.8% year-on-year in the second quarter – a major relief from the paltry 0.2% recorded between January and March.

The finance and insurance sector played a pivotal role in Q2, expanding by 13.1%.

Manufacturing growth remained slow, at 0.2%, although that was offset against a 6.7% decline in Q1. Construction was up by 5.1%, while

Analysts worry about the growth differential between services and manufacturing

transportation and storage increased 2.5%,

it admittedly fared better than its struggling

following a 0.9% contraction in the previous

Southeast Asian counterparts. Its bumpy fall

quarter. Total exports recorded negative growth for

against the US dollar began at the turn of the year,

the fourth consecutive quarter, although the 0.1%

but it recovered some ground in the first half of

drop was relatively good news compared to Q1’s

September. Singapore’s deep foreign exchange

8.7% reverse.

reserves and a robust current account, however,

Clouds have also hung over the stock market, with the STI down by 1.86% year to date in

require retouching in the near term.

mid-September, while the usually upstanding

The outlook for the second half of 2013 is

Singaporean dollar came under pressure, though

January 1

suggest the central bank’s currency policy will not

one of measured hope, although even the most

BW Gas orders its first LNG-FSRU HK’s Wallem announces big Singapore expansion

3

6

9

11

12

14 13

Mass sackings at Chemoil 4

www.seashipnews.com

15

Economy The usually upstanding Singaporean dollar has come under pressure

upbeat analysts worry about the growth differential between services and manufacturing. The bulls are pinning their hopes that stronger recent industrial output data from China, in particular, Japan and Korea, plus increased export and import figures for Singapore in July, are indicators of rising global

By contrast, bearish observers question the

economic sentiment. Singapore’s manufacturing

validity of attributing too much value to a positive

output increased 2.7% year-on-year in July, while

single month – transport and engineering, after

transport and engineering output increased 13.9%,

all, posted a 2.2% decline year-on-year in the first

and marine and offshore engineering posted a

seven months of 2012 – and ponder from where

19% gain, largely due to rig building and ship

Singapore’s sustainable manufacturing uplift will

conversion projects.

emerge.

More positively, July saw the largest monthly

The result is a mixed bag of indices that do

number of vessel arrivals (11,992) and shipping

not fully indicate that the waters around the Lion

tonnage (204,455,000 gt) so far in 2013, while

City are becalmed. Achieving the upper end of the

monthly discharged air cargo has only been

government’s 2.5-3.5% GDP growth band would

bettered once this year, in March.

represent a healthy return from 2012’s laggardly

Inflation is being carefully managed, despite

1.3%, but would still be well down on the 4.9% of

strong wage pressure. For 2013, core inflation is

2011. As the Monetary Authority of Singapore noted

predicted to average 1.5–2.5%, while manufactured

in early September, barring any external shocks,

product prices were weighted at 97.2 in July,

steering the economy towards a “mild expansion

compared to 100.0 in December 2012.

path” is probably the best to be expected.

Singapore’s GDP by sector, Q2 2013 v Q1 2013 Absolute Value

Q2 2013 (US$m)

Q1 2013 (US$m)

GDP at Current Market Prices

90,166.1

87,090.8

Goods Producing Industries

22,594.7

19,895.8

Manufacturing

17,548.3

15,086.2

Construction

3,654.2

3,653.2

Utilities

1,365.7

1,128.5

Other Goods Industries

26.5

27.9

Service Producing Industries

57,717.9

57,940.6

Wholesale & Retail Trade

14,025.5

13,436.6

Transportation & Storage

6,378.9

5,929.2

Accommodation & Food Services

2,116.2

2,092.3

Information & Communications

3,108.1

3,096.1

Finance & Insurance

10,900.2

10,912.6

Business Services

12,463.5

12,267.5

Other Services Industries

8,725.5

10,206.3

Ownership of Dwellings

4,058.5

4,015.1

Source: Singapore Ministry of Trade & Industry

MacGregor to shift HQ to Singapore Fincantieri completes buyout of STX OSV

16

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22

30 23

25

28

Jurong Shipyard settles case with Ernst & Young

31

www.seashipnews.com 5

Port

Terminals, Version 2.0 Singapore’s boxport is to shift to Tuas, freeing up a large chunk of prime real estate

I

n decades past when a port lost its pre-eminence it meant only one thing, a slow, one directional decline. Not so, however, with Singapore. The

world’s top boxport until 2010, when Shanghai overhauled it, has not been moping about the loss of its crown, the focus is very much on the future.

Under trying circumstances, Singapore’s port has had a solid year with throughput in the first ten months up 2.6% to 27.13m teu, putting it on course to sail very close to Shanghai’s 2013 volumes, anticipated to be in 33m teu range.

However, 2013’s volumes are insignificant

CH CHING Property developers are delighted with the port’s move from the city centre

compared to what prime minister Lee Hsien

We will build capacity ahead of time

Loong has planned for the republic’s terminals – a wholesale shift from the city centre to Tuas at a cost estimated in the region of $8bn to nearly double port capacity and free up 1,000 ha of prime

important part of our economic landscape,” Teo

real estate.

said.

Lee said this August the first berths in this

Singapore upping its container terminal game

dramatic port relocation would be operational by

comes at a time of acute pressure for transhipment

2022. Transport minister Lui Tuck Yew says the

business in the region with neighbouring Malaysia

new site will be able to handle 65m teu.

and Indonesia both touting new port projects and

“Tuas provides a suitable location because of

Myanmar outlining terminal plans too.

its sheltered deep waters and proximity to both our

Dr Jonathan Beard, managing director of GHK

major industrial areas and international shipping

and one of the best known names in ports analysis,

routes,” Lui said earlier this year.

sees “intense competition” in Southeast Asia for

Josephine Teo, senior minister for finance

transhipment volumes, something that is only set

and transport, speaking at this year’s Singapore

to grow.

Shipping Association annual dinner, stressed

“Increasingly it is a very tough game,” he

that the government viewed developing maritime

comments. “These ports have to invest a lot but

infrastructure and business as a priority. In the

revenues per teu are not going up.”

coming decades a new airport will come up in the

Indeed, the yield per teu for PSA, the dominant

east of the republic, while the port will be shifted to

port operator in Singapore, is around 50% of its

the west of the country, Teo outlined.

fellow Southeast Asian terminal operator ICTSI,

“We will build capacity ahead of time to ensure the maritime sector remains a very

thanks to its heavy dependence on transhipment cargoes, according to statistics compiled by GHK.

Reflect Geophysical applies for court protection

February

Cambridge Academy of Transport launches in Singapore

1

5

9

18 13

16

Restructuring announced for struggling Jason Marine

25 21

27 28

NOL completes sale of its HQ International Paint relocates to Singapore www.seashipnews.com 7

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Yards

Global footprint

Keppel and Sembcorp yards around the world, including proposed ones

Singapore’s two main shipbuilders are extending their expertise across the world

S

ingapore’s dominant two

Named Baku Shipyard, the new

Norteamérica, S.A. de C.V. (PMI), both

shipbuilding conglomerates,

62 ha yard is designed to undertake

subsidiaries of Mexico’s national oil

both renowned for world class

the construction of a wide range of

company, Petroleos Mexicanos (PEMEX).

operations, are building global empires.

specialised vessels and merchant

Singapore continues to defy the odds,

ships including subsea vessels, anchor

and operate a yard facility in Mexico,

churning out vast amounts of high

handling tug/supply vessels and

the first phase of which is to support

tech offshore infrastructure as well

multipurpose offshore support vessels

the construction of six KFELS B class

as competing globally on the ship

such as platform supply vessels, as well

jackup drilling rigs for PEP. To be located

repair front. Were the sun to set on the

as tankers and cargo vessels. The yard

strategically in the Port of Altamira along

republic’s shipyards, however, their

also has ship repair and conversion

the coast of the Gulf of Mexico, the

global footprint, linked invariably to

capabilities.

proposed yard will cost around $400m,

energy intensive areas, will ensure

Baku Shipyard adds to Keppel’s

Singaporean shipyard know-how will

existing footprint in Azerbaijan where it

continue for generations.

has been operating the Caspian Shipyard

Keppel already has facilities in the

The MoU is to jointly develop, own

with the first phase estimated at about $150m.

Not to be left behind is Sembcorp

Company (CSC), also a joint venture

Marine, which already has yard presences

United Arab Emirates, Qatar, Brazil,

between Keppel and SOCAR, since 1997.

in Brazil, India, the US, the UK and

Azerbaijan, Kazakhstan, China, the

Tong Chong Heong, ceo of Keppel

China. In August the company signed

Philippines, Indonesia, the US and the

Offshore & Marine, said, “The new yard

a memorandum of understanding with

Netherlands – an unmatched global

reinforces Keppel O&M’s Near Market,

Saudi Aramco and National Shipping

reach. Nevertheless, it continues to

Near Customer strategy and enables

Co of Saudi Arabia (Bahri) to prepare

search for more opportunities around

us to unlock synergy in our Caspian

a detailed feasibility assessment on

the world. In September Keppel opened

operations.”

developing a shipyard in the Arab nation.

a second yard in Azerbaijan in a joint

In October Keppel O&M signed

The planned maritime yard would provide

venture with the State Oil Company

a memorandum of understanding

engineering, manufacturing and repair

of Azerbaijan Republic (SOCAR) and

with Mexico’s PEMEX Exploracion

services to rigs, platforms, commercial

Azerbaijan Investment Company (AIC).

y Produccion (PEP) and P.M.I.

vessels and offshore service vessels.

Max Hartvigsen resigns as president of Jaya Offshore Second ship collision kills one

March

9

1

3

6 Ship collision, one dead Otto Marine gets first ship orders for 2 years

11

12

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15

www.seashipnews.com 9

Yards

Rig crown stolen Cheap prices, aggressive financing terms and early delivery slots have seen China surpass Singapore in jack-up construction, writes Sam Chambers

W

hile 2013 will go down as another very strong year for Singapore’s offshore building

yards there is an ominous portent of things to come, something blowing in the wind from China.

This year has been a “momentous” one for China’s offshore ambitions as a mixture of available slots, cheap prices and generous financing will see the People’s Republic surpass Singapore in the number of drilling rigs built, according to research from Religare Capital Markets. Speaking at Marine Money’s Singapore event this September Vincent Fernando, a director at Religare, said China accounted for 34% of the

Chinese yards are not focused on short-term profits

market share for drilling rigs in the

noting how since they were predominantly

year to date, with Singapore on 23%, the

state run they had very deep pockets.

first time China has surpassed the Lion

This has begun to impact Singaporean

suggesting owners ordering in the People’s Republic need to have extensive shipbuilding experience and a big team on the ground.

It is not simply down to price for this year’s astonishing turnaround. Aksel Olesen, managing director of Pareto

Republic in this field. Korea is still top

shipbuilders’ financials, with both Keppel

Securities Asia, maintained that investors

with 41%.

and Sembcorp mentioning Chinese

still favour Singapore, but the problem

competition impacting margins in their

is that the earliest slots of the Southeast

latest quarterly results.

nation’s land constrained yards is in

“In 2013, China will have stolen the market share crown from Singapore,” Fernando said. This huge change

2016, where as China still has 2015 slots.

“The downside of margins of

happened far faster than most expected,

Singaporean yards will get worse going

he admitted.

forward,” Fernando said.

Chinese yards are offering very

“Singapore does not have the land

Audra Low, head of origination and

aggressive payment terms – with just 10%

structures at Clifford Capital, warned that

needed up front, where as the best that

Singaporean yards would find it “very

Singapore can offer is 28%.

hard” to challenge those who are not

Chinese prices for jack-ups have been reported as around 30% cheaper than in Singapore.

capacity at its yards to compete.”

Olesen maintained: “The Chinese will dominate in the years to come.”

The leading offshore players in China have also poached staff from Singapore

profit orientated.

Despite the sudden leap by Chinese

and Korea to boost their capabilities.

A silver lining was offered by Jens

yards, quality remains an issue, said

“Chinese yards are not focused on

Jesper Andresen, ceo of Axis Offshore.

short term profits. They just want to shift the market to China,” Fernando said,

March 16

Fernando concurred, saying:

“Building is much harder in China.

China is not for everybody,” he said,

Halliburton opens giant centre in Jurong Management reshuffle at Otto Marine

18

19

22 NOL names largest ship, APL Temasek

25

Taubken, vice president at DVB bank, who noted importantly that Singaporean rigs command a higher price in resales.

26 28 Tanoto Shipyard fire, 3 die www.seashipnews.com 11

Finance

Readily available Owners continue to flock to this country thanks to the ease and speed with which capital can be raised, notes Jason Jiang

I

s Singapore the easiest place to raise shipping

Manish Singh, who runs consultancy

funds in the world? The continued decamping of

Ideocean, notes the considerable strengths of

shipowners to the Southeast Asian nation lends

the wider banking sector, which ensures all

credence to this idea. In addition to more than 20

ancillary expertise are present for shipowners.

major banks with shipping finance portfolios, there

Also, important is the existence of ship finance

is a wide array of alternative financing options,

structuring and legal expertise along with other

including shipping trusts and listings on the

functions like credit risk assessment.

Singapore Stock Exchange.

To cap it off, everything is in walking distance

DNB Bank’s recently appointed head of Asia, Vidar Andersen, reckons the republic is racing ahead of its rivals.

“I see Singapore as uniquely placed as a global maritime hub,” he says, adding: “It covers the whole value chain from education through manufacturing and services to finance better

of each other, making sealing a deal a veritable stroll compared to many other shipping centres.

Singapore covers the whole value chain better than any other city in the world

than any other city or region in the world. In today’s market where liquidity is prevalent in Asia, especially compared to Europe, Singapore obviously has a stronger position also as a ship finance hub than only a few years back.”

Comments Abhishek Pandey, head of shipping, Southeast & South Asia at Standard Chartered Bank: “Singapore offers a probusiness environment given its well-regulated banking sector, excellent infrastructure, costcompetitiveness, highly skilled labour force, fast business start up times, competitive tax regime, strong investor protection and high levels of transparency and governance.”

April

UP AND UP The local stock exchange is one of the most vibrant in the world for shipping

Temasek announces creation of LNG vehicle Pavilion Energy

15 16 1 12

5

www.seashipnews.com

8

10

Swiber buys out Pape Engineering

Uni-Asia spends $73m on 3 newbuilds

19

20

25 26

Portek buys Latvian terminal MTQ’s takeover of Neptune Marine complete

30

Law

Advantage hammered home BIMCO’s decision to give the nod to Singapore as an arbitration centre a year ago is revolutionising the city state’s maritime legal set up

I

n November last year, the global shipping association BIMCO adopted Singapore as the third seat of arbitration in its Standard Dispute

Resolution Clause alongside London and New York. Singapore Maritime Chamber of Arbitration (SCMA) rules become default procedural rules when Singapore is selected.

“This is major game changer,” argues Lee Wai Pong, executive director of the SCMA, “and is expected to tilt the balance of arbitration related work more towards Singapore from the hitherto dominant centre of London.”

Against this backdrop, SCMA hosted its third

insights for SCMA in the development of its future

This is major game changer and is expected to tilt the balance of arbitration related work more towards Singapore from London

roadmap. He noted the unique nature of maritime

beyond disputes arising from traditional shipping

arbitration as compared to mainstream practice

contracts into contracts related to the commodities

and suggested that the divergence be preserved

and the oil and gas industries.

annual conference at the Supreme Court on 4 September to more than 150 delegates. Guest of honour was the chief justice Sundaresh Menon who in his keynote speech highlighted the continued support of arbitration development by the judiciary and legislature and provided valuable

and further refined in order to better suit the

As a mark of its international acceptance,

requirements of the maritime industry.

more than 50% of the disputes registered non-

SCMA has seen strong growth in the number of

Singaporean parties. New procedures streamlining

case references, panel of arbitrators and requests

arbitration for disputes involving collision liability

by parties for appointment of arbitrators. The

apportionment and settling of survey fees will be

diversity of cases registered is also spreading

launched soon.

May Sinwa offloads AMS stake

1

3

LNG terminal starts ops

6

7

9

15 12 Samudera Shipping ceo resigns www.seashipnews.com 13

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FUTURE FUEL Singapore’s LNG terminal is set to handle 9m tons a year

LNG

Gas hub ambitions A first import terminal in Jurong is up and running while an LNG investment vehicle has also been formed as Singapore looks to lead Asia’s gas dash

B

uild it (throw in a bundle of incentives) and

Petronas, has been appointed chairman.

they shall come has been the maxim that has worked wonders for Singapore’s maritime

Pavilion Energy is investing globally across LNG-related businesses, including LNG trading

and commodities scene in the past 15 years. The

and exploration as well as storage, processing and

same tactics are now being lavished on liquefied

shipping.

natural gas to ensure the republic becomes the leading regional gas hub.

“We will acquire assets across the full LNG value chain by building strong relationships with key

“In the commodity markets, location, location, location can be more important than production—

partners, investing and co-investing in gas acreage, liquefaction plants and assets, shipping and

strategically as well as geographically,” argues

In the commodity markets, location can be more important than production

June Ho, director at legal firm Pan Asia Wikborg Rein. “Singapore understands this concept better than most,” she continues, “and has already demonstrated this by creating internationally recognised hubs in insurance, financial services, capital raising, shipping, O&G construction, and

regasification,” Seah said this September.

refining. Now LNG is in Singapore’s sights.”

Singapore LNG inaugurated the city-state’s first

“I can say with confidence that Singapore will devote itself into a major LNG trading hub soon in

gas terminal this May, seven years after the plan

the region. I believe we have what it takes to attract

was first mooted. Costing an initial $1.4bn, the

growing LNG volume into Asia, and will be in a

facility, located in Jurong, will eventually be able to

position to set LNG prices in the region,” he added

handle 9m tons of gas a year.

In November Pavilion Energy paid $1.3bn for a

What the authorities realised early on is that building infrastructure is but one part of the

20% stake in three gas blocks offshore Tanzania in East Africa.

jigsaw, being a lynchpin in buying, selling and

“As Singapore continues to expand its global

distribution is what makes a hub. Pavilion Energy

presence in the marine and offshore industry and

was formed this year by sovereign wealth fund

through initiatives undertaken by the government,

Temasek Holdings to this end. The new firm

we will certainly see continued growth in the LNG

is headed up by technology entrepreneur and

market. This will provide many new opportunities

innovator Seah Moon Ming, who joined Temasek

in the fields of engineering, finance and brokerage

from ST Engineering, where he was deputy

for Singapore-based companies,” concludes Derek

ceo. Hassan Marican, former ceo of Malaysia’s

Novak, vp of operations at class society ABS.

Successful rights issue for Rickmers Maritime

May 17 16

Fuzhou port investment for PSA Lars Christensen new ceo of Epic Pantheon International Gas Shipping

29

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24

25

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5 maritime firms convicted for poor treatment of foreign workers Toll opens redeveloped Loyang offshore supply base Ezra cashes in Ezion stake www.seashipnews.com 15

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Owners

Opportunities abound SeaShip News makes it a priority to be in touch with top shipowners every day. Below are some of their thoughts

K

enneth Glenn,

view, Phoon warned he felt the global

Heavy Industries. In total, Enesel has

president of

orderbook was still “alarmingly high”,

ordered ten 13,800 teu ships, which are

containerline

while scrapping was slowing down.

going on charter to Taiwan’s Evergreen

APL, shrugs his

“Personally, I think there is too much

and four 9,400 teu ships which will go on

shoulders and

eco legislation coming out at the moment,”

charter to Hamburg Süd. The first ship was

looks fairly non-

Phoon said.

named and delivered to Evergreen on 17

plussed when asked

On the domestic front, Phoon said

September.

by SeaShip News his thoughts on how

Singapore, as a shipping hub, remained a

the new P3 alliance will change his

“very competitive” place to do business.

business. The grouping of Maersk, MSC

On Enesel’s business model for Singapore, Poulsson says, “There will not

Elsewhere in the world of container

be any speculative ordering. The company

and CMA CGM has been the container

shipping, another senior member of the

will only order with reliable and trusted

shipping story of the year, but for Glenn

SSA is making quite a splash.

end users secured.” Having said that,

it is something he’s prepared for. “It’s

Were Esben

Poulsson admits, “There is an appetite for

inevitable,” he says, “the whole industry is

Poulsson to carry

scaling up and these days to operate you

a set of cards for

have to have big ships.”

all the boards and

Top gas

associations he sits

One of shipping’s blue chip names, BW

March of the first of ten 14,000 teu ships,

on he would have

Group, has undergone a remarkable

which followed on from ten 10,000 teu

little spare space in

transformation since the onset of the

vessels it took in the last couple of years.

his hand luggage.

downturn in 2008, ditching its former

To this end APL took delivery this

Glenn was speaking to SeaShip News

more.”

bulk reliance for a far greater exposure

As well as his commitments to the

to gas.

at the annual megabash that is the

SSA, the Singapore Maritime Foundation,

Singapore Shipping Association (SSA)

the International Chamber of Shipping,

dinner. Speaking at the event, having

Epic Shipping, AVRA International and

company, casts his mind back five years

been reelected as SSA president, senior

Straits Tankers, the former Torm man is

ago and compares his fleet then and now.

Evergreen employee Patrick Phoon said

chairman of Enesel Pte Ltd, a Singapore management company for a fleet of

gas,” he says, adding that more than 50%

“reasonably good

newbuilding containerships delivering

of BW’s portfolio is now gas-related, the

shape” despite all

during 2013 and 2014.

fastest growing area of business for the

The Singapore offshoot of the Athens-

faced. term point of

June

fleet.

BW Gas ordered four plus two options

based Enesel SA is charged with looking

From a long

4

“We have shifted more emphasis into

shipping was in

the problems it

1

Andreas Sohmen-Pao, the ceo of the

after the owning companies of a series of

of very large gas carriers (VLGCs) at

large boxships delivering from Hyundai

Hyundai Heavy Industries in Korea this

STX Pan Ocean files for court receivership Oil Spill Response Limited opens base in Loyang

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Owners cautiously confident, saying: “Indications are that a gradual recovery is around the corner.”

Another Scandinavian firm, Stena Bulk, is among the most active bulk-wise in the Lion Republic. In February, Stena Bulk and Indonesia’s Golden AgriResources (GAR) set up a product tanker joint venture, Golden Stena Bulk. The jv has since ordered six product tankers at Guangzhou Shipbuilding International.

In June 2012, Stena Weco – the joint venture between Stena Bulk and Danish Dannebrog – formed a 50-50 joint August. Clarkson data puts the 84,000 dwt

gas finds. The fundamentals would appear

venture with GAR. The joint venture,

quartet as due for delivery in 2015.

to be positive, but as with every shipping

Golden Stena Weco, was aimed at

sector it is cyclical. Margins are high

providing an overall solution for GAR’s

of an IPO in Oslo, something that is set to

currently and therefore outside investors

international transportation of its palm oil

land the group more than $500m.

are entering the newbuild market. This will

products.

BW Gas’s LPG fleet is now in the throes

Elsewhere in the Singapore LPG landscape, Petredec, one of the world’s largest LPG traders, is moving its sights

lead to a fall in margins further down the road.”

“Golden Stena Bulk can be seen as the second step in our collaboration with leading palm oil plantation company, GAR.

towards more downstream and storage

New bulk contenders

operations as it gears up to be a full LPG

Nicholas Fisher will

Erik Hanell, president and ceo of Stena

logistics leader. Founded in 1980 Petredec,

use his experience

Bulk. “Such strategic partnerships are

now shifting more than 12m tons annually,

gained in diversifying

a well-tried concept for us and involve

is in a period of rapid expansion. Its fleet

Oman Shipping

coordinating complementary assets,

consists of 18 owned ships, two bareboat

Company to broaden

know-how and experience. With GAR’s

chartered, five on order and 32 on time

the revenue base for

robust network and intimate knowledge of

charter. Giles Fearn, chief executive, says

Singapore’s Masterbulk, having taken on

the region, this strategic partnership gives

more newbuild orders will follow.

the ceo role a couple of months ago.

us greater access to the Southeast Asian

For us, it’s also a gateway to Asia,” says

“Diversification in dry bulk activities

“Petredec is in a period of high

will be key for Masterbulk’s business

investment in

going forward,” Fisher says.

In other Stena news, Erik Lewenhaupt, general manager and head of Stena Bulk

Plans for the medium term include

both shipping and

market as well as to local competence.”

Singapore, is to leave his post in the Lion

downstream/storage,”

strengthening the company’s position in

Republic after 6.5 years to go back to

says Fearn, adding:

the forest products market.

headquarters in Gothenburg in Sweden.

Masterbulk owns 20 open hatch gantry

“We are looking to

Lewenhaupt, a well known face among

build with all sectors of the LPG shipping

crane-equipped vessels, 16 of which are

Singapore shipowners, will take on a

market.”

technically managed through its own

senior marketing and communications

shipmanagement activity in Singapore,

role within the group.

“The LPG market is in a state of revolution,” Fearn says confidently. “New

and four of which are managed through

As a replacement Stena has hired

supply is constantly being discovered

Westfal-Larsen Management in Bergen.

Nicolas Duran, former head of sale and

On the markets, Scandinavian Fisher is

most notably in the US with its huge shale

July 1

purchase for Fearnleys Singapore.

Board exodus at First Ship Lease including Philip Clausius

4

6

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Offshore

Red hot Southeast Asia remains one of the fastest growing places for offshore operators. SeaShip News prides itself on its access to leading players in the sector, as witnessed over the next couple of pages

S

tock exchange announcements are

and the subsea sector described by many

testament to the booming oil and gas

as hot.”

scene in the region, with not a day

Setting his sights high, Marco Polo

in Malaysia, Vietnam and Myanmar.

Back of the net for Chellsea

going by without some big new deal signed

Marine’s ceo has outlined plans to become

Chellsea, one of Singapore’s newer

or local offshore players celebrating

a “significant” group in offshore oil and

entrants into the offshore support vessel

record results.

gas marine logistics and support in the

(OSV) scene, is undergoing a period

region.

of significant expansion. Part of the

The region is one of the hottest for offshore developments in the world.

Kishinchand Chellaram (KC Group)

What’s more, Sean

Thailand and Malaysia are deemed

Lee says he has “plans

of shipping companies, Chellsea was

especially scorching areas for the

and the wherewithal”

set up by Gautam Chellaram two years

booming offshore support vessel (OSV)

to be one of the

ago as part of the group’s strategic

market, says one of the region’s top

larger offshore

diversification, with, he says, modestly, “a

brokers. Mike Meade, ceo of Asia’s largest

support vessel (OSV)

blank piece of paper”. Said blank piece of

independent offshore brokerage, M3

owner-operators in

paper has since transformed into a fleet

Marine, reckons the capital expenditure

Indonesia, specifically in the mid-sized

on a rapid rise. “Our focus is on building

for exploration and production (E&P) in

anchor handling tug supply vessel (AHTS)

the infrastructure,” says Chellaram.

Asia will grow by 53% between 2013 and

segment where he says his company has

2017, with an “above average spend” in

the “early-mover advantage”.

India, Malaysia and Indonesia.

The Chellarams traditionally have

Marco Polo Marine has 11 sets of

focused on dry bulk

tugs and barges and four OSVs while

via Hong Kong’s KC

across the board,” he says, “with notably

its Indonesian subsidiary, PT Pelayaran

Maritime, but saw

jack up utilisation - and rates - increasing

Nasional Bina Buana Raya Tbk (PT BBR)

the coming offshore

has 35 tugs, 32 barges, one self-propelled

explosion and bought

barge and three OSVs. PT BBR listed on

a platform supply vessel in 2011, kicking

January 9 this year.

off new firm Chellsea. A sister ship was

“We are seeing an increase in activity

With regard to ship chartering, the ceo says Marco Polo Marine will still be active

quality”, stresses Chellaram, and aimed at

in Asian and Australasian waters including

the North Sea market.

Thailand and Australia – “our bread and butter” – as well as exploring new projects

July

added last year. Both ships are “high

“The strategy for Chellsea in ordering these vessels,” says Chellaram, “is to order

Keppel management succession announced Former NOL man Lim Boon Heng appointed Temasek chair

24

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Barge capsizes, eight dead Court gives Sembcorp Marine control of PPL Shipyard board

27

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Offshore vessels operating around the world.

“We are seeing an increase in demand for our fleet and increasing day rates and utilization,” says the new ceo.

Finally, in our offshore roundup we high spec and build quality vessels, with

Making headlines

come to Nordic Maritime, one of myriad

a focus on winning long-term business.

In the news more

Scandinavian shipping companies that call

There is no compromise in quality, which

than most this year

Singapore home. The offshore specialist

is what will win us long-term business with

on our site has been

is increasingly carving a niche out of

oil majors.”

Singapore’s offshore

Indonesia to cement its strong Southeast

contractor Otto Marine,

Asian business.

The Chellarams would do well to take

for better and for

heed of the thoughts

worse. Garrick Stanley

operates seven vessels – both owned and

of Indonesian

has been in the role of group ceo for just

under third party management. The fleet

national Rony

over four months now trying to continue the

is made up of five seismic vessels and two

Sudjaka, the chairman

process of making the firm more profitable

survey/chase support vessels.

and md of Singapore-

with an eye to increasing the company’s

based OSV specialist

fleet of offshore support vessels.

Founded in 1999, Nordic Maritime now

vessel under construction for delivery

Stanley joined Otto subsidiary Go

Pacific Richfield Marine and arguably the

There’s also a DP2 multipurpose supply late this year plus two DP2 400-men

man with the longest and broadest OSV

Marine Group back in 2007 as managing

accommodation/construction vessels

experience in the world.

director and has over 18 years experience

coming into the market next year.

Wearing a trademark cap Sudjarka says

in the industry.

Also of interest

The shipyard has been through a “cost

of the firm that he founded in 1989 that

being built is a

while there is plenty more competition

cutting and efficiency consolidation stage

catamaran hybrid

in his sector all of a sudden he is not

whereby fats are trimmed and resources

design under

worried as the ships he builds and owns

redeployed,” Garrick says. Nevertheless, the

construction for

are “higher class” with big engines and

upshot is that the yard is now ready to take

seismic support

more back up systems. Sudjaka has a long

on new projects, it bagged its first orders

operations which is

history of building OSVs, but had quit

for two years towards the beginning of the

due out in the third quarter of next year.

the practice for a number of years before

year, for instance, and has received further

“This is an exciting project which can be

returning to it in 2008, when he found he

deals since.

very interesting for the Southeast Asian

was unable to get ships built at other yards

Garrick is keen to portray the group’s

market with a low fuel consumption and

because they were so busy. He made the

full range of offerings beyond just the

high functionality to support the seismic

decision to rent a yard in Singapore and

shipyard.

survey vessels,” claims Kjell Gauksheim,

“The company has definitely developed

started churning out high spec ships.

into a marine services company with a

Sudjaka now owns 55 ships. His shipyard has one dock and is able to build

shipyard,” he stresses.

Sudjaka’s father worked in Hong Kong

Gauksheim, who joined Nordic Maritime in 2006, says the plan going forward is

“Our shipping business has now

eight ships every 18 months.

Nordic Maritime’s ceo.

to grow the company’s seismic and DP

refocused to renew, expand and upgrade

accommodation fleets.

at the old Taikoo Shipyard from 1926,

our own fleet whilst the shipyard increases

before moving back to Indonesia to do

our offshore fabrication capabilities and

is already facing an overcapacity and

contracting work. Sudjaka himself, now

ship repair,” Garrick explains.

supply,” he says, concluding: “However, we

77, has been in the OSV business now for

are very focused on our two segments and

dominated from Otto Marine’s fleet of 63

more than half a century.

AUGUST

have strong belief in these.”

Yangzijiang Shipbuilding first company to launch dual RMB trading at SGX Garrick Stanley new ceo of Otto Marine

2 1

Group revenues are currently

“For certain OSV vessels the market

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Swiber completes debut Singapore dollar sukuk

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12 Macquarie takes 45% stake in Helios Terminal www.seashipnews.com 23

New Entrants

Making the cut SeaShip News checks out who has made a splash in the Lion Republic this year

S

ingapore plays home to arguably

to handle various divisions of the Ofer

of the region’s canniest shipping players,

more senior positions in shipping

shipping empire, including overseeing the

former Pacific Basin boss, Chris Buttery,

than anywhere else on Earth. Its

existing Tanker Pacific fleet along with

who in November became chairman of the

business friendly, incentivised maritime

ships transferred from Zodiac.

company. In May, Epic appointed shipping

environment sees business class

Epic gas creation

industry veteran Lars Vang Christensen as

planeloads regularly touching down to set up shop in the Lion Republic.

The Lion Republic has a new gas carrier operator following the merger this January

MOL bolsters presence

was in the middle of the year when Ken

of Epic Shipping Holdings and Pantheon.

Employing more and more people in

Cambie, former chief financial officer

The new creation, Epic Pantheon

Singapore is one of the world’s largest

of Hong Kong’s OOCL, joined Quantum

International Gas Shipping, has, including

shipowners, Japan’s Mitsui OSK Lines.

Pacific Shipping Services as finance

vessels on order, a very rapidly built up

chief. Quantum Pacific is a new maritime

fleet of 31 ships.

Among the highest profile switches

venture created by Israel’s richest man,

Speaking on the occasion of MOL’s 129th anniversary in April, the president

It has significant new backers

of the Japanese line, Koichi Muto, was

Idan Offer, headquartered in Raffles Place

including Jeffries Capital Partners, DVB

fulsome in his praise of business in

in the heart of Singapore.

Bank and Diamantis Pateras Maritime. The

Singapore.

Quantum Pacific has been formed

AUGUST

company also has investment from one

In January 2013, MOL transferred its

Alan Hatton appointed head of FSL Trust PM Lee Hsien Loong lays out future port masterplan

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Haze warning returns to Singapore

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its new ceo.

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Russian jailed in latest bunker scandal Sembcorp Marine signs MoU for possible Saudi yard

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New Entrants dry bulkers to Singapore, a place Muto

Maersk has around 120 ships under the

customers and clients,” Baardensen tells

described as “a key hub of customers and

Singapore flag, the most after 180 in

SeaShip News.

information”.

Denmark.

“The move to Singapore has restored

Most of Maersk Line’s large orderbook

Crowley’s local solutions

cost competitiveness to the dry bulker

of newbuilds are set to fly the Singapore

The solutions group of America’s Crowley

fleet, which had been operating at a loss,

flag, according to Thomas Knudsen,

Maritime Corp is opening a project

laying a strong foundation for restoring

president of Maersk Line Asia Pacific.

management office in Singapore and

profitability,” Muto said.

building two new heavylift deck cargo

“There’s a maritime cluster around Singapore where you have access to

barges for dedicated use in the region.

“We will accelerate business expansion

pretty much all the different aspects of

The company also has an option for the

from our hub in Singapore through

shipping,” Knudsen told Bloomberg. “The

construction of two additional barges.

business reforms designed to capture

last five years we have really cleaned up

“This move not only allows us to

growth primarily in emerging markets.”

to concentrate on fewer flags to get the

broaden our geographical reach, but

At a cocktail reception it organised

Looking ahead, the MOL boss added:

economy of scale. You can definitely get

will also allow for more efficient turnkey

in November, MOL said it was likely to

lower cost if you go to Panama or Liberia,

solutions within the areas in which our

transfer a significant tranche of its tanker

but we feel that Singapore is a good

customers are focused,” says Craig

fleet to Singapore too.

combination of cost and quality.”

Tornga, Crowley’s vice president of

Maersk, Singapore’s largest owner

Grieg Star in the ascendant

solutions. “It is also important for us to be

Grieg Star is part of the privately owned

growth with dedicated equipment, which is

A.P. Moller-Maersk, famous

Grieg Group and is a fully integrated

why we are investing in the construction

for its containerline switching

shipping company and owner of one of

of two new barges for the region.”

able to support the operation and market

ports from Singapore to

the world’s largest open hatch fleets. On

Malaysia over a decade ago, is

July 1 the firm opened a branch office,

Rickmers goes it alone

already the largest shipowner

Grieg Star Shipping Singapore, headed up

At the start of the year Rickmers-Linie

by fleet size in the Lion Republic,

by Audun Baardensen.

established a new company – Rickmers-

and is set to get a whole lot

In addition to operating one of the

Linie (Singapore) – to strengthen its

bigger here.

largest open hatch fleets in the world,

presence in Southeast Asia. The new

Grieg Star also operates about 15 - 20

company, which has taken over all

geared bulk carriers in the supramax

responsibilities for Rickmers-Linie’s

segment through Grieg Star Bulk.

activities from its former agents, Horizon

Singapore is now the company’s biggest base outside its Danish headquarters.

According to Bloomberg,

Shipping, is operating out of offices co-

Grieg Star Shipping Singapore is the company’s branch office and “lengthened

located with Rickmers Shipmanagement at

arm”, according to Baardensen, in

11 Keppel Road. Rickmers-Linie’s ceo is

Southeast Asia, carrying out all kinds of

the former head of Neptune Orient Lines,

marketing, operational and commercial

Ron Widdows.

services.

Wallem takes aim

“We intend to establish

Leading Hong Kong shipmanager Wallem

ourselves in Southeast Asia

set up a new shipmanagement operation

by keeping in close touch with existing

in Singapore that complements its long

and new

standing ship agency business and the recently formed NW Ship Management company. “This will double the size of

SEPTEMBER

BW Gas announces Oslo listing intentions

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Australian syndicate in takeover bid for Miclyn Express Offshore.

Masterbulk appoints Nicholas Fisher as ceo

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New Entrants Wallem’s business in Singapore during

has created a joint venture with Raffles

Service providers

2013 and will be adding many new jobs to

Shipping Projects forming Westshore

A leading UK private maritime security

the local maritime sector,” a spokesperson

Raffles. The operation is headed up by

company (PMSC) that has set up in the

in Hong Kong said.

Norwegian national Alexander Pettersson.

Lion Republic tells SeaShip News that

The new shipmanagement operation

Initially Westshore Raffles’ focus will

shipowners in the region need to watch

commenced operation in April with all

centre around sale and purchase and

out for myriad firms who are charging

Wallem businesses in Singapore moving

newbuildings. Eventually chartering will

incorrectly for their protection services.

into one office in Alexandra Road.

also be included. Westshore already has

Freddie Hall, who relocated in April

Wallem has had a presence in

as business development manager for

offices in Norway and Brazil.

“One of the main reasons for this

REDfour Maritime Security Solutions in

a leading ship agency and logistics

step was to provide the link between

Singapore, warns: “Reputable PMSCs are

company.

Asian shipbuilders and investors and the

aware of the need to limit costs and will

abundance of activity in Brazilian waters,”

work with clients to achieve this. However,

Singapore for more than 50 years as

Offshore developments

comments Sølve Høyrem, Westshore’s

it’s important to keep in mind that there

In March Halliburton opened its newly

managing director. “Great synergies can

are some providers that are quoting

constructed Completion Technology and

be seen between these two markets. In

unsustainably low in order to win transits

Manufacturing Center in Jurong.

addition to this the offshore market has

and it’s these, less reputable companies that can cause problems.”

“Halliburton is the leading supplier of

become more global and competitive than

completion products and services globally,

it was 12 years ago. This has being clearly

On the rationale to set up an office in

and the Singapore facility is a flagship for

demonstrated by Asian shipyards that are

Singapore at Suntec City to go alongside

our Completion Tools manufacturing in

now in a position to actively compete with

REDfour’s hq in London and its Sri

the Eastern Hemisphere,” says Dave Lesar,

European yards on most levels."

Lankan outpost, Hall notes the “seeping

Halliburton chairman, president and ceo.

The new state-of-the-art facility is

Redolent of the booming offshore scene in the region Australia’s Energy

migration” of shipmanagement from the UK towards Asia.

located on about 43 acres in Jurong

Human Resources formed this June Energy

Industrial Park and includes more than

HR Asia Pacific, a joint venture with the

the world’s largest paints and coatings

500,000 sq ft of manufacturing and

M3 Marine Group, based in Singapore.

company, officially opened its new

administrative space.

International Paint, part of AkzoNobel,

global marine coatings headquarters in

Australia’s Toll Group opened its

Singapore this February.

redeveloped S$300m Offshore Petroleum

Elsewhere, Martek Marine ceo Paul

Facility in May, describing it as “an

Luen outlined growth plans including a

effective interface between air, land and

new office in Singapore. The tech firm

sea for companies in the marine, offshore,

plans to double in size over the next

oil and gas industry”.

three years with a key component being

Meanwhile, the MacArtney Underwater

the expansion of Martek in Singapore by

Technology Group has opened a new

moving into new, larger premises.

group subsidiary in Singapore.

Geir Sjurseth, managing director

MacArtney Singapore offers local

Energy HR Australia, founded by

access to extensive stock and capacity,

Sarah-Jeanne Fraser in 2008, has come

moved to head up the bank’s Singapore

giving prompt delivery to underwater

up with a “unique fee structure and

operations this year, is bullish on offshore

technology customers in Singapore,

business model”, the company said in a

as a whole.

Malaysia, Thailand, Cambodia, Vietnam,

release, which has proven popular across

Brunei, Indonesia and the Philippines.

Australia. The same model is now coming

drilling and floating production see good

to Southeast Asia.

prospects,” he tells SeaShip News.

Norwegian offshore broker Westshore

October 2

4

“In particular subsea and construction,

Keppel Offshore & Marine announces plans for $400m Mexican jv yard KS Energy forms Mexican jv

Vallianz Holdings ties up huge $334m Saudi deal

1

of DVB bank’s offshore division, who

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Canada’s largest agribusiness Richardson International sets up in Singapore DNV Petroleum Services taken over by European private equity firm IK Investment Partners

15 www.seashipnews.com 27

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The only maritime and offshore news site dedicated to Southeast Asia www.seashipnews.com @SeaShipNews

Maritime CEO Ad.indd 2

13/8/13 6:41 PM

New Entrants “It has become evident over the years

that Singapore is the best location for

global trade. These investments represent a

that the offshore industry is driven by very

the domicile. Since more than 70% of

continuation of our long-term commitment

different demand drivers versus traditional

MacGregor’s sales are already generated

to Singapore, elevating its significance as

sea going shipping transportation,”

in Asia Pacific, we feel that establishing

an integral part of ABS’ future.”

Sjurseth says, adding that the size of DVB’s

our domicile in Singapore would

offshore business has grown relatively

represent a natural development for our

Innovation and Research Center (SIRC).

more than conventional shipping, thus

operations,” comments Mikael Mäkinen,

SIRC will expand R&D activity to include

justifying a separate division. The bank’s

president of MacGregor.

marine operations and performance

offshore division caters to the OSV market,

ABS will create its Singapore

Cargotec is proceeding with listing

management.

subsea, construction vessels, seismic

its marine division on the Singapore

operators, accommodation units, drilling

Exchange. Moreover, it has just

Lloyd’s (GL) maritime engineering and

and floating production units.

announced that it will look to list

consultancy subsidiary, announced the

MacGregor, best known for its ship

unveiling of its ECO Research Centre

in the lubes industry made a return to

cranes, in Singapore too, subject to market

in Singapore this May. The centre aims

the sector this year. Caroline Huot’s work

conditions.

to conduct research to strengthen

One of the region’s best-known names

has seen her head up lube sales for top

Meanwhile, FutureShip, Germanischer

In January Cargotec tapped Finnair for

FutureShip’s energy efficiency solutions

names such as Total and Gulf Oil Marine.

its new ceo to replace Mikael Maekinen

Now, after a stint in Africa with UBI Oil,

who moved to Singapore in October last

Finally, there’s news that Singapore-

she has returned to Asia, to Singapore

year to lead the company’s Asian listing

headquartered DNV Petroleum Services

where bunkering giant KPI Bridge Oil has

likely to take place next year.

(DNVPS) has been taken over by European

tasked her with setting up a global lubes operation.

Another leading crane manufacturer, Austria’s Palfinger, is raising its presence

“Lubes require a different type of relationship with customers as it’s a much

in Singapore.

for its Asian clients.

private equity firm IK Investment Partners.

Founded by Norwegian classification society DNV in 1981, DNVPS is a global

“We are currently working on a new

provider of fuel management services for

longer term business,” Huot tells SeaShip

Singapore setup which will cover the

the maritime and power sector. DNVPS,

News. She will be bringing in a specialised

whole Asia Pacific,” Karl Oberreiter, head

this May, set up a dedicated laboratory to

team as well as using KPI’s existing

of Palfinger Marine, tells SeaShip News.

focus on R&D and specialised tests.

network.

Similar to what she created at Gulf

Class growth

Oil Marine Huot is determined to build a

Class society ABS is upping

global network offering 24/7 service.

investments in Singapore

Lubes are the fourth biggest expense

that will strengthen engineering and

for owners after bunkers, crew and

survey capabilities and lay the foundation

insurance, Huot claims.

for strategic global initiatives. ABS is expanding its operational workforce,

Lifting up

increasing research and development

In a big shift for one of Europe’s best

(R&D) efforts and establishing a Global

known marine equipment manufacturers

Performance Center in Singapore.

MacGregor moved to Singapore. The

“ABS has worked alongside industry,

subsidiary of Finland’s Cargotec is

academia and government in Singapore

increasingly focused on the Lion

for more than 50 years,” says ABS

Republic.

president and ceo Christopher Wiernicki.

“Due to its closeness to our Asian customers and partners, we are confident

October

“We are moving in step with Singapore as it continues to expand its presence in

Miclyn Express Offshore buys 50% of the shares in Thailand’s Uniwise Towage from Svitzer Asia

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NTU announces it is establishing an advanced maritime energy test facility

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www.seashipnews.com 29

When four cruise ships had to berth in Singapore in a single day.

Wallem delivered.

Delivering Maritime Solutions www.wallem.com

Shipmanagement

Cost issues Managing ships out of the Lion Republic is increasingly tricky from a profit point of view

S

hipmanagement, a fine margins game at the best of times, is being squeezed ever more in Singapore. That has not stopped the republic

seeing the number of shipmanagers increase, but it certainly has many on edge. The fact is; Singapore is expensive.

Office space, for instance, in Singapore’s central business district is the eighth most expensive in the world and nearly as costly as midtown Manhattan. And there is likely no let up here with Macquarie Research forecasting Grade A rent to rise 5% next year to S$10 per sq ft per month.

Similarly salaries are a major issue. Pay for

SKY HIGH Singapore office rental prices are now on a par with Manhattan

well qualified shipping practitioners now easily surpasses Hong Kong and most other Asian cities.

Once again, there’s bad news on this front too with two separate recent surveys suggesting the average Singapore salary will rise by 4.5% next year.

Phil Parry, chairman of UK maritime recruitment

The intensifying scramble for a limited supply of local talent is a headache

firm Spinnaker, says: “Singapore has become a

like India or the Philippines. The intensifying

victim of its own success in that the huge growth in

scramble for a limited supply of local talent is also

the number of shipping employers there has led to

a headache for managers, he says, something that

a war for talent.”

has not been helped by a slight tightening in the

Summing up the republic’s HR issues, Parry

country’s immigration policy.

says: “Singapore’s problem is that with so many

For Simon Doughty, the head of Hong Kong’s

newly landed companies, demand for locals or

Wallem Group, competition is the biggest challenge

foreigners with existing permanent residence

in Singapore, a country Wallem has significantly

outstrips supply. Something has to give and that’s

bolstered its presence in this year.

either in the way of salary inflation or conceding

“There are many shipmanagement companies in

that sometimes it’s necessary to look overseas for staff.”

the island vying for the same business,” he says.

Wallem’s head in Singapore, shipmanagement

Manish Singh, chairman of consultancy

veteran Deepak Honawar, says the cost of living

Ideocean and former high flier with V.Ships, says

in the republic is now higher than other maritime

the rapid escalation in costs means managers must

cities such as Hong Kong, Hamburg and Athens.

seek back office solutions elsewhere in places

November 1

Nevertheless, new entrants continue to roll in.

Pacific Basin founders Chris Buttery and Paul Over join Epic Shipping Tan Boy Tee buys into Viking Offshore and Marine PSA buys a stake in the Chinese port of Lianyungang

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Sembcorp Marine officially opens first phase of its huge 206 ha yard in Tuas Baltic Exchange holds first ever board meeting outside of the UK in Singapore www.seashipnews.com 31

Bunkering

Mixed bag A tricky year for many has seen the number of bunker suppliers contract, writes Katherine Si

S

ingapore, the world’s largest bunkering hub, has seen the sector contract considerably this year. The

number of companies now licenced by the Maritime and Port Authority of Singapore (MPA) has slipped by around 10 this year

Many bunker traders in Singapore are seeking alternative places to carry out their business

to just over 70 bunker suppliers. This was a result of certain firms failing to adhere

so low, and Singapore land prices so

to the MPA’s terms and conditions while

astronomical many are choosing storage

strong bunker trading team based out of

others simply did not renew their licence

at sea while others are looking at Malaysia

its global headquarters in Singapore. The

as competition and operating conditions

to set up shop.

company is also launching a new office in

have been fierce of late.

However, there have been others who

Due to slack demand and extortionate

Dubai to serve its customers in the Middle

have strengthened their position in the

East with plans for further expansion in

storage prices many bunker traders in

Lion Republic this year. A good example is

Asia and Europe.

Singapore are seeking alternative places

Dynamic Oil Trading, the lube and bunker

to carry out their business.

firm, which celebrated its first anniversary

Singapore this year include Pacific

this October.

Bunkering and Norwegian Oil Trading

Both BP and Swiss trader Gunvor Group are giving up their fuel oil storage

In the 12 months since its

space at the giant 2008-opened Universal

establishment, Dynamic Oil Trading has

Terminal in Singapore. With VLCC rates

expanded rapidly and now has a ten-

New bunker players that came to

(NOT), the latter majority owned by Hesnes Holding and NYK Trading Corporation.

LNG plans of Singapore (MPA) and its appointed consultant, Lloyd’s Register, have

“There is an increasing need for the

completed a study on the technical

shipping industry to look at alternative

standards and procedures for LNG

sources of fuel and LNG is a promising

bunkering in the port of Singapore.

option that we should consider. The

Following the completion of the

completion of the study is an important

study, MPA will be organising industry

milestone in the development of LNG

Singapore has made progress in the

consultation sessions to share the

bunkering in the port of Singapore and

development of the practical operational

results of the study with the maritime

we would like to share this significant

procedures and standards for LNG

industry and seek their feedback.

progress with the industry,” said Captain

bunkering operations.

With the industry feedback, MPA will

M Segar, MPA’s assistant chief executive

subsequently finalise the LNG bunkering

(operations).

The Maritime and Port Authority

November

Pavilion Energy spending $1.3bn for a 20% stake in three blocks off Tanzania Pacific Radiance IPO nets $154.7m

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standards for the port of Singapore.

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Kreuz Holdings and a subsidiary of the Headland Private Equity Fund conclude a management-led leveraged buyout of Kreuz Holdings for S$446m www.seashipnews.com

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For more information, please visit: Anastasia Emelianova T: +44 207 596 5011 E: transport@ite-events.com