Bangkok Shipowners and Agents Association

Bangkok Shipowners and Agents Association
To represent and promote the views and policies of the Association to the Thai Government and all other governmental official and non-governmental bodies which may be concerned with shipping.
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Local Shipping News
Cosco pays a full price to take over Orient Overseas. What does this mean for the flagging port of Hong Kong? PDF Print E-mail
Tuesday, 18 July 2017 10:56

Just as China’s flagship aircraft carrier arrived in Hong Kong’s Victoria Harbor last week for the first time, an even larger vessel of private enterprise sailed off into the embrace of the motherland.


Even the Liaoning—that’s the aircraft carrier—can’t compete with Orient Overseas (ticker: 316.Hong Kong) in tonnage. Founded in 1969, the company runs close to 100 container ships and is synonymous with Hong Kong’s status as a global trade power. That status has been declining for a while, but could regain some momentum with Orient’s $6.3 billion sale to Chinese-government-owned Cosco Shipping Holdings (1919.Hong Kong). The deal will make Cosco, whose shares are up 50% year to date, the world’s third-biggest container line. It’s a sign of rejuvenation in global shipping, which had been listing badly since the global financial crisis.


Analysts are split on which company will fare better from this deal. Cosco is forking out a lot based on other recent megamergers. France’s CMA CGM shelled out the equivalent of book value to get its hands on Singapore’s Neptune Orient Lines a couple of years back. Cosco is paying some 1.4 times price-to-book for Orient, close to the stock’s frothiest valuation over the past few years.


Some reckon the premium is justified, arguing that the beaten-down sector is salvaging a recovery after years of consolidation and sinking earnings. “It’s in Cosco’s favor to grab Orient at this early stage,” Crucial Perspective analyst Corrine Png tells Barron’s. “It’s going to be a lot more expensive when the entire container shipping sector rerates.”


The container industry foundered after the financial crisis, when demand hit rock bottom for companies that had ordered too many new ships. That scuttled South Korea’s Hanjin Shipping last year. But economic recovery in the U.S. and Europe has given the sector new life. Cosco and Orient are now riding that recovery, with the combined group having the biggest share of trans-Pacific trade and third-largest share in Europe-Asia trade. Recent consolidation has also withered the competition, giving freighters leeway to hike prices. “The balance of power will move toward the shipping lines from the ports and consumers,” says Png. She thinks that Cosco and Orient will soon become the world’s No. 2 container shipper, rivaling the largest, Denmark’s A.P. Moeller-Maersk (AMKBY).


Like any big deal between Hong Kong and China, this one is overflowing with political intrigue. Orient’s controlling shareholder is the pro-Beijing Tung family, whose most prominent member is Tung Chee-hwa, Hong Kong’s first postcolonial leader. The deal also means another part of Hong Kong’s legacy as a gateway to China will sail away. The city’s port is leaking business to others on the mainland, which have the advantage of being closer to China’s inland manufacturing. “They could just end up bypassing Hong Kong as a result,” says Png.


Orient will remain listed in Hong Kong after the takeover, and Daiwa analyst Kelvin Lau rates the shares a Buy. The stock has soared 120% year to date, but he forecasts another 10% upside or so. Aside from riding a wave of positive sentiment due to the takeover, Lau thinks the stock should rise on improving shipping rates over the next year. Jefferies’ Andrew Lee also says Cosco is a Buy, given a recent recovery in the earnings. He sees another 15% or more upside.
Building new marine economy PDF Print E-mail
Tuesday, 18 July 2017 10:54

After delivering frigates to naval forces of Algeria and Pakistan, and mega-container ships, liquefied natural gas or LNG carriers and vehicle carriers to shipowners in the United States, Norway, Denmark, Germany and Singapore, Chinese shipyards have recently made inroads into the high-end ship segment, to compete with their South Korean competitors.


What’s facilitating that trend is the “marine economy”, whose meaning has widened in recent times to include industries like shipping, fishing, aquaculture, oil and gas.


Marine economy now includes sectors such as marine chemistry, biomedicine, ocean power, seawater use, marine tourism, ocean engineering and construction. A large variety of vessels serve these industries and sectors. Conventional vessels like bulk ships and ore carriers are no longer the kings of the marine economy transport system.


The new-age marine economy has created new opportunities for shipyards. More so for Chinese shipyards because of the Belt and Road Initiative.

Many economies participating in the initiative are seeking to develop trade, regional connectivity, offshore energy, tourism and other service businesses via the 21st Century Maritime Silk Road. Additional demand for ships is coming from China’s increasing resource deployment into high-end manufacturing as part of the Made in China 2025 strategy.


Lin Zhongqin, president of Shanghai Jiaotong University, said capable Chinese shipyards have already upgraded their products, having sold cheap bulk carriers and tugboats for more than a decade. They now make complex, high value-added vessels to reach buyers in new segments through international collaboration, research and development activities.


Shanghai-based Hudong-Zhonghua Shipbuilding (Group) Co, a subsidiary of China State Shipbuilding Corp, bagged an order for four LNG carriers with tank capacity of 174,000 cubic meters each from Japan’s Mitsui O.S.K. Lines or MOL last month. The total value of this deal is 5.2 billion yuan ($735 million).

These LNG carriers will be equipped with the latest dual-fuel system technology developed by the Chinese shipyard. The technology helps lower a ship’s fuel consumption by up to 16 percent.

The vessel will be used in Russia’s Yamal LNG project from 2019 or 2020 onward, through a wholly-owned subsidiary of MOL. The four contracted carriers will transport European LNG to and from the project.

Hudong-Zhonghua also delivered container-carriers, vehicle-carriers and chemical tankers to clients in Sweden and the Netherlands earlier this year.

Chen Jianliang, chairman of Hudong-Zhonghua, said China, as well as both developed and developing countries, are all eager to purchase natural gas from abroad to adopt greener energy. LNG carriers can meet the demand to secure their energy supply from overseas markets.

The American Bureau of Shipping, a Houston-based classification society, predicted that around 100 LNG carriers will be bought by different shipowners across the globe between 2017 and 2020.


“China is shifting from producing inefficient and dated vessels that are clogging up Chinese shipyards to investing heavily in the rapidly growing market of LNG and liquefied petroleum gas or LPG carriers, as well as marine fishing ships, law enforcement vessels, large icebreakers and chemical tankers,” said Chen.


To date, Hudong-Zhonghua has built 13 LNG carriers on orders placed by both domestic and foreign companies, including CNOOC Energy Technology and Services, China LNG Shipping Ltd, Teekay LNG Partners and British Gas Services Ltd.

Building new marine economy


Even though many Chinese shipyards went bankrupt and remerged last year, the operational revenue of Hudong-Zhonghua was 18.35 billion yuan, up a bit from 2015.


The new course adopted by shipyards in Jiangsu, Zhejiang, and Shanghai is largely the result of many global shipping companies reporting losses since 2008 because of overcapacity, declining global trading volume, falling ship prices, surging costs in labor, energy, steel, ship parts and maintenance.

Eager to enhance its earning ability, Nantong COSCO KHI Ship Engineering Co, a 50:50 shipbuilding joint venture between China COSCO Shipping Corp Ltd and Japan’s Kawasaki Heavy Industries Ltd, also aims to have an annual production capacity of two LNG carriers by 2018.


In addition to LNG carriers, another Chinese shipyard, Shanghai Waigaoqiao Shipbuilding Co Ltd, is building a cruise liner, the first such vessel to be built on the Chinese mainland. It is expected to be delivered to a Hong Kong-based buyer in 2023, marking a milestone in the evolution of the country’s shipbuilding industry.


The as-yet-unnamed ship will be built at Shanghai Waigaoqiao Shipbuilding Co, a joint venture between CSSC and Italy-based Fincantieri SpA, the world’s largest builder of cruise ships.


Waigaoqiao Shipbuilding, another CSSC subsidiary, announced earlier this month it will inject another 720 million yuan into its cruise liner building technology company to improve its research and development strengtBuilding new marine economyh.

The Hong Kong client will order two new liners from the CSSC-Fincantieri joint venture. It has an option to order four more home-built ships.

“The construction of China’s first cruise ship will help improve various sectors of the domestic shipbuilding ecosystem, which will become part of the global supply chain,” said Dong Liwan, a shipbuilding professor at Shanghai Maritime University.


Even though Chinese shipyards have recovered a bit in the first half of this year, Dong said competition with South Korean competitors will be fierce in the long term, especially at a time when the whole industry is witnessing price wars and demanding advanced ships with more functions.

South Korean shipyards received 34 percent of global orders in the first half of this year, to top the world’s country-wise list for the industry’s giants, according to British shipping and offshore market intelligence provider Clarkson Research Services Ltd.

Three South Korean companies including Hyundai Heavy Industries Co and Hyundai Samho Heavy Industries Co, received 72 ship orders, including 60 for oil tankers and very large crude carriers or VLCCs, with a total value of $4.2 billion.


Meantime, Samsung Heavy Industries Co received orders worth $4.8 billion to build LNG carriers, mega-container ships and VLCCs from shipowners in Southeast Asia and Europe.
Slum to shipping firm, a leap of hope for Mumbai slum teens PDF Print E-mail
Tuesday, 18 July 2017 10:53

Behind the World Trade Centre towers in Mumbai’s Cuffe Parade, the road narrows into a maze of alleys overrun with garbage and ankle-deep drain water, the smell of sewage hanging thick in the seaside air over the 400 homes packed into the Ambedkar Nagar slum. But when Raghuveer Prasad steps out, in sharply pressed office apparel, he’s unfazed by the surroundings.


About to start his final year in BCom, the 17-year-old is one of five youngsters from Mumbai’s slums selected for a paid internship at J M Baxi and Co, a 100-year-old shipping and logistics firm. The youngsters, put through school and college by NGO Humara Footpath, have completed about 18 months of a two-year internship to give them job and life skills that their background otherwise rules out. The interns earn a stipend of Rs 4,000, but have their meals and travel costs taken care of.


At work, Raghuveer and Ajit Shetty, 19, who live a few doors apart in Ambedkar Nagar, have mostly worked in the travel department. Raghuveer reels off his new skills — send a fax, an email, scan documents, convert files to PDFs, make online bookings, ask for corporate rates at hotels in parts of the world he has never heard of before, make out invoices, purchase foreign exchange. He also knows the capital city of every country in the world and all major airport codes.

Before December 2015, he had never seen an intercom or fax machine. “I now understand what it is to be responsible for something in an office atmosphere, to take up a task and finish it reliably. I also know how to befriend people from other parts of the city,” he says.


Ajit underwent a personality change, says his mother Tamilselvi, 35, a single parent who works as a domestic help. “He was inclined towards some badmaashi,” she says, referring to his use of swear words, the evenings spent leaping into the Arabian sea, the bleached hair and swagger.

Ajit agrees the responsibility of a paid internship straightened him out. “The other boys here don’t care for studies, or jobs. Most of them hang around doing nothing all day. I used to be like that, but once I had the job there was no time for anything. I’d come back from school and go to work, and then back home to finish homework,” he says.


Humara Footpath’s volunteers have taught street children in Mumbai for 17 years and funded the schooling and college education of scores of children. But for its founder, Taha Jodiawalla, the idea of an internship took shape around two years ago when his friends, many with companies of their own, joined him for football with kids from the NGO. One of them saw the kids at play, and things fell in place.


The first batch, comprising Ajit, Raghuveer and a girl, joined on December 1, 2015. At the peak, the programme had eight teens doing internships at various offices of JM Baxi. Three have currently taken a break to focus on board exams. “On-the-job training is much better than rote learning. And sometimes, school curriculum can be quite irrelevant,” says Jodiawalla.


Jodiawalla personally selects those candidates for the internship, boys and girls close to 18 years, who would need to find employment over the next few years. The aim is not a prospective job with JM Baxi, but to make the kids employable. Gunjan Singh, general manager at JM Baxi’s travel department, says the interns she has supervised have grown tremendously, from dress to speech. “They are not at all ashamed of where they come from. And they have confidence in their desire to move up,” says the former teacher.
ทลฉ. เตรียมสร้างสำนักงานใหม่ที่เป็นมิตรกับสิ่งแวดล้อม PDF Print E-mail
Tuesday, 18 July 2017 10:51

ที่มา ทรานสปอร์ตเจอร์นัล

ร้อยตำรวจตรี มนตรี ฤกษ์จำเนียร ผู้อำนวยการท่าเรือแหลมฉบัง เปิดเผยว่า ท่าเรือแหลมฉบัง (ทลฉ.) เตรียมดำเนินการก่อสร้างอาคารสำนักงานใหญ่ของ ทลฉ. และสำนักงานให้เช่า (Laem Chabang Port Head Office : LCP HO & Office Space)

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