http://www.seatransport.co.il/ en Thu, 01 Jan 1970 02:33:26 +0200 Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/ KEDesign Editor 0.1 agency@seatransport.co.il edy@kedesign.co.il http://www.seatransport.co.il/en/dynamic/news//?id=33 THE captain of the container ship Zim Mexico III, which was involved in a fatal accident while departing from Mobile, Alabama, in March has been arrested in connection with the incident. German national Wolfgang Schroder was arrested earlier this month in Houston, Fairplay has been told by federal prosecutors. He has been indicted by a federal grand jury in Mobile on charges of misconduct or neglect by a ship's officer in connection with the toppling of a dockside crane that killed an electrical contractor who was working on the crane. Following his arrest, which was based on a criminal complaint by the US Coast Guard, Schroder was released on a $500,000 bond and ordered to appear at a preliminary hearing in Mobile on 8 May. Coast Guard investigators are quoted in court documents saying that Schroder had ignored repeated warnings concerning mechanical problems aboard the ship prior to the accident. He could face up to ten years in prison if convicted on the charge. In a related case, the Alabama State Ports Authority filed a federal civil lawsuit seeking $12M from the ship's owner and operator for replacement of the crane.
Lloyd's Register - Fairplay web links]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=33 http://www.seatransport.co.il/en/dynamic/news//?id=29
Ron has served the industry for 4 years, as Director General of Israel Ports and Railways Authority and since February 2005 as CEO of Israel Ports Development & Assets Company Ltd.

Since the port reform came into being in February 2005, IPC is responsible for the development of Israel’s three commercial seaports in Haifa, Ashdod and Eilat and for providing them with the necessary infrastructure which will allow them to efficiently and competitively handle Israel’s international maritime trade.

In addition to managing some of the country’s largest infrastructure development projects, the company acts as Israel’s port property landlord, managing the government’s assets allocated for the handling of international maritime commerce.

IPC's board of directors decided last Thursday to appoint a special sub-committee to select a new CEO to the company.]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=29 http://www.seatransport.co.il/en/dynamic/news//?id=18
Thehearing was held last Tuesday at the Tel Aviv District Court.Police recommended at the hearing the indictment of the second officer, a Yugoslav national, of the Zim Asia containership.

It is understood that the second officer will be charged with negligent homicide and violating Port Authority regulationsRegarding the captain, Moshe Ben David, police said they found no conclusive evidence to charge the captain who was asleep when the collision happened, and the crew did not wake him up in keeping with Israel regulations. The police did not suggest charging any other crewmembers.

The accident occurred at 2:00 a.m when the Zim Asia ship hit the Shinsei Maru 3, a Japanese fishing boat, in international waters, near the northern Japanese island of Hokkaido. There was only one survivor in the incident.

The investigation revealed that although there was no physical identification of theJapaneseboat, Zim Asia's radar had identified it prior to the collision. The ship's captain was asleep when the accident took place, and the crew did not wake him up in keeping with regulations.  

The investigation revealed that although there was no physical identification of the boat, Zim Asia's radar had identified it prior to the collision.The investigation focused on several questions, including the overall responsibility of Zim for their cargo ships and their operation while at sea, the behavior of the crew before and after the collision, and Ben David's performance as captain of the ship]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=18 http://www.seatransport.co.il/en/dynamic/news//?id=17
Exports are expected to increase by 6.5% in 2006, slightly below the forecast expansion of world trade, partly due to the slow growth of exports in 2005. Per capita consumption, which rose more slowly in the first half of 2005, is expected to increase relatively rapidly in 2006, by 2.4%, because of the expected rise in disposable income resulting from the persistent improvement in the labor market and the tax reductions.

Fixed investment is expected to rise by 4.5%––following its standstill in 2005 and continuous reductions in the last few years––in particular due to an expected rise of investment in residential construction. The fundamental assumptions underlying the forecast are that domestic public consumption will move in accordance with the government's expenditure target, and that the security situation will remain stable.

According to the Bank the greatest threat to Israel’s economic growth in 2006, comes from the global economy, especially the ongoing rise in fuel prices.

The Bank of Israel noted, “The slowdown in the rate of growth in the demand for Israeli exports in general, and the fall in exports of mixed technology and traditional products in particular, which were partly due to the slowdown in the growth of world trade, worked to slow the growth rate of GDP in Israel]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=17 http://www.seatransport.co.il/en/dynamic/news//?id=27
Israel Railways general manager Ofer Linchevski: The goal is to increase cargo revenue by 15%.

Gal Nissim    5 Feb 06   14:05  

Israel Railways carried 7.5 million tons of cargo, generating NIS 147 million in revenue, in 2005, an increase of 8%.
Israel Railways general manager Ofer Linchevski said the goal was to increase cargo revenue by 15%.

In 2005, Israel Railways carried 4.35 million tons of quarry products (28% phosphates, 16% potash, and 8% sulfur), 2.5 million tons of containers (31%), 620,000 tons of grains (8%), 215,000 tons of sand and garbage (3%), and 35,000 tons of fuels.

Israel Railways’ most important cargo contracts signed in 2005 included a NIS 13.5 million contract with Israel Ports Development & Assets Company Ltd. and Yefe Nof Transport Infrastructures & Construction Ltd for the transport of over 80,000 tons of cargo from the Kishon Port in Haifa.

Published by Globes [online], Israel business news -]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=27 http://www.seatransport.co.il/en/dynamic/news//?id=19
The $25,000 sponsorship will be for the years 2005 – 2006, will assist the disabled athletes with their preparations as well as with the purchase of range of special equipment necessary for theBeijing ParalympicGames.

In addition Zim will also ship the sailing boats from Israel to Beijing Paralympic Games, at no charge.

In return, Zim's logo will be printed on the sails as well as on athlets' uniforms.

In the last 2004 Athens games the Israeli trio team, skipper Dror COHEN, Aaron EFRATI and Benni VEXLER navigated its way to the gold medal.]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=19 http://www.seatransport.co.il/en/dynamic/news//?id=2
Mr Guler said talks on implementing this should be completed within the next two months and added that an offer has also been made from Gazprom to extend the pipeline westward to Greece and then to Italy. “A joint company will be formed for that project,” he said.

Gazprom’s Miller further suggested that a second pipeline be built under the Black Sea to secure natural gas exports to Turkey.

Mr Miller reportedly accused Ukraine, with which Russia was recently involved in a bitter energy price dispute, of siphoning off in January 550m cu m of Russian gas meant for Europe.

Summing up Russia’s warmer attitude towards Turkey’s role in energy supply, he said: “We consider Turkey as a reliable partner to transit gas to third countries.”

Earlier Russia was sceptical towards Turkey’s long-term strategy to become the region’s main energy hub]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=2 http://www.seatransport.co.il/en/dynamic/news//?id=35  
Israeli owner Ray Car Carriers’ order for newbuildings at Vietnam Shipbuilding Industry Corp (Vinashin) is a $1bn deal, according to an official at the yard.


Vinashin was reported on Wednesday to be building up to eight units for the Israeli owner but the company did not disclose any financial details.



Now a senior official at Vinashin has put the price at $1bn but did not confirm the number of units to be made for Ray Car Carriers.


The first vessel will be delivered in September 2008 with subsequent newbuildings to follow at intervals of between five and six months.


The 4,500-unit car carriers are being designed by Naval Progetti Co of Italy.


Vinashin currently has orders for about 100 vessels totaling around 3.5m-dwt.


In late April the shipbuilder secured contracts for two 56,000-dwt bulkers from Japanese trading house Itochu Corp.


UK-based Graig is said to have a total of 15 Diamond-53 class bulkers on order there at Vinashin’s yards.


In February, Denmark's Clipper Group ordered no less than 10 4,600-dwt multipurpose vessels, while MPC Marine of Germany recently upped its orders for 707-teu vessels to 10.


Vinashin has been on an expansion drive of late with more new yards set to open.


Last week it won approval from the government for a new $18m yard in the Mekong Delta province of Han Giang which will be capable of building and repairing vessels up to 10,000-dwt.


Vinashin is building a new yard on a 54-hectare site in the southernmost province of Ca Mau at a cost of VND 300bn ($18.82m). The yard will be able to build vessels of between 5,000-dwt and 10,000-dwt.


A subsidiary of the company, Thanh Long Co, is also expanding capacity at its yard in a project set to cost VND 800bn.


The company is investing in the manufacture of steel in Vietnam in an effort to keep up with the growing demand for new tonnage worldwide.

By Eoin O'Cinneide in London

published: 12:39 GMT, 11 May 2006 | last updated: 12:39 GMT, 11 May 2006]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=35 http://www.seatransport.co.il/en/dynamic/news//?id=34
When the RRS Discovery set out to sea, the crew was expecting stormy weather. Meteorologists had predicted a violent storm, and the scientists -- a team from Britain's National Oceanography Center -- wanted to observe it from up close. What they ended up experiencing went far beyond anything they could have imagined -- and could have cost them their lives.

Near the island of Rockall, 250 kilometers (155 miles) west of Scotland, enormous waves came racing toward the vessel. When they checked their measuring instruments later, the scientists discovered that the tallest of these monster waves had hit nearly 30 meters (98 feet) at wind force 9. And it didn't come alone. "We were shaken up these waves for 12 hours," said Naomi Holliday, the leader of the expedition. Entire sets of giant waves hammered the ship

After the adrenaline levels of the scientists had fallen somewhat, astonishment spread among the crew. The standard computer programs had predicted stormy weather for February 8, 2000, but not such a tempest. Even more astonishing, the giant waves had not appeared individually, but in a group. Previously waves of such size were assumed to only appeared alone.

What Holliday characterized as a "dangerous situation" has turned out to be a spate of luck. The Discovery's crew witnessed the largest waves ever measured by a scientific instrument on the open sea, according to an article the scientists have only now published in the journal Geophysical Research Letters.

Biggest waves ever measured

With a height of up to 29.1 meters (95 feet) from trough to crest, the single waves are the highest ever measured. In terms of so-called significant wave height, they established a new record, according to the scientists: 18.5 meters (61 feet). Significant wave height is the median height of a wave's upper third. It corresponds roughly to the sea swell that experienced sailors can estimate with the naked eye.

More important than the record, however, is how the waves were born. "They were not caused by very strong winds," Holliday told SPIEGEL ONLINE. The strongest phase of the storm had already been over for a day when the largest water masses hit the RRS Discovery.

The scientists think a so-called resonance effect was responsible for the monstrous waves: waves and wind travelled across the Atlantic at practically the same speed. The storm was able to pump energy into the waves efficiently for a long time, building them up to giant size. According to the article published by Holliday and her team, the rapid increase in wave height at the beginning of the event supports this hypothesis.

Trouble for sailors and shipbuilders?

The new data may spell trouble for sailors and shipbuilders, the British scientists believe. Their research results suggest that giant waves may be much more common than previously believed. "Of course we can't make general claims about all the world's seas on the basis of the specific event we observed," Holliday said. "But computer simulation can do this for us."

According to Holliday, plugging the new data into the standard formulas shows that existing computer simulations are slightly off the mark -- at least as far as the formation of giant waves is concerned. "The waves we observed were not predicted by the computer simulation," Holliday explained. That has implications for the construction of ships and oil rigs. "The safety standards are partly based on the computer simulations."

Why was the difference between simulation and reality not noticed earlier? Because of the relative scarcity of measuring buoys and ships collecting scientific data, according to Holliday: "Direct wave height measurements are extremely rare." Cargo ships tend to avoid powerful storms, and oil rigs are so few and far between they hardly ever encounter giant waves.

For this reason alone, the measurements taken by the British research expedition are "spectacular," confirmed Wolfgang Rosenthal, a marine weather expert at a Geesthacht research institute associated with Germany's GKKS ship-building society. Waves of the sort observed by Holliday's team had already been analyzed theoretically, but the only practical knowledge about them came from vague reports. The new measurements confirm the theories that have been developed. "Nothing like this has ever been documented before," Rosenthal said

Not freak waves

The significant wave height of 18.5 meters (61 feet) is particularly interesting, according to Rosenthal. "The giant 29 meter (95 feet) waves fit well with this statistically," Rosenthal said. He explains that the giant waves observed at Rockall are not the same as the notorious "freak waves" that appear out of nowhere during relatively mild weather, destroying even large vessels. Only those waves are considered freak waves whose overall height is at least twice their significant wave height. When the significant wave height is in the region of 18.5 meters (61 feet), giant waves roughly 30 meters (98 feet) tall become possible -- as they did near Rockall in 2000, and as Holliday and her colleagues were able to find out for themselves.

But Rosenthal doubts that the new data will have a significant effect on security standards in shipbuilding. "A single case doesn't render the existing computer simulations obsolete," he said. Nonetheless, questions about the accuracy of computer simulations have been raised for some time with regard to sea swells under extreme weather conditions. Rosenthal explained that this is partly a result of the weak measurements obtained by means of satellite-based radar. "The stronger the wind gets, the weaker and harder to measure the radar signal reflected by the waves," he said.

Holliday -- whose team includes an expert for computer simulations of sea swells -- is convinced her measurements will contribute to an improvement in computer models. "The existing models strongly underestimate maximal wave heights," she said. "The people in charge of simulations are going to have to find out what they're doing wrong."]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=34 http://www.seatransport.co.il/en/dynamic/news//?id=30
 
MAN B&W says the first diesel engine developing more than 100,000 bhp has entered service on a Costamare vessel.
The 12K98MC unit of 101,640 bhp has been installed in the first of a series of 9,200-teu containerships being constructed at Hyundai Heavy Industries for the Greek owner.


MAN B&W Diesel licensee Hyundai in Korea built the engine which weighs around 2,100 tons. Costamare's super post-panamax vessels are being chartered to Cosco Container Lines (Coscon) in China.


MAN B&W is a subsidiary of the German industrial group MAN AG which says it intends to convert its diesel engine business into a European company or Societas Europaea (SE) this year

At the same time, MAN B&W Diesel AG in Augsburg is to be renamed MAN Diesel SE.


The new SE legal form will allow for a stronger integration of MAN's international business activities, says the company.The supervisory board should in future include members from other European countries, as well as employee representatives from Germany.


Corporate centre for the new MAN Diesel SE will be in Augsburg. MAN's diesel division employs 6,700 people in Germany, Denmark, the UK, France, Czech Republic and China.


MAN B&W Diesel was formed in 1979 following the takeover of Danish engine manufacturer Burmeister & Wain (B&W) by MAN.

By Geoff Garfield in London]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=30 http://www.seatransport.co.il/en/dynamic/news//?id=28
Taking a huge leap of 43 per cent in size from the new record breaking "Freedom of the Seas" to be delivered for Royal Caribbean from Aker Yards in April, the new giant of the cruise market will be 360 meters long, 47 meters wide, 65 m high above waterline and will accommodate 5,400 passengers. The previous deliveries from Aker Yards to Royal Caribbean include eleven newbuildings, and there are three more in the present orderbook, the world's largest cruise vessels in the Freedom class, to be delivered in 2006, 2007 and 2008. Consisting of 18 newbuildings, the total value of the order book of Aker Yards in Finland is some 4.3 billion euro after this contract. The contract is subject to final confirmation of buyers financing.]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=28 http://www.seatransport.co.il/en/dynamic/news//?id=20
?Das ist ein unglaublich wichtiges Thema?, sagte Hamburgs Erster Bürgermeister Ole von Beust (CDU) auf dem traditionellen Schifffahrtsessen des Nautischen Vereins zu Hamburg vor rund 260 Gästen am gestrigen Abend. Das Bittere allerdings: Knapp acht Jahren Planungs- und Genehmigungszeit stünden am Ende gerade einmal drei Monate reine Ausbaggerungszeit gegenüber. Von Beust wörtlich: ?Wir müssen in Deutschland, verdammt nochmal, schneller werden.? Das Land Hamburg werbe intensiv bei den direkten Nachbarbundesländern um Sympathie und Unterstützung für diese Maßnahme, auf deren Verwirklichung man gerade in den für den Elbe-Hafen wichtigen Schifffahrtsnationen in Asien händeringend wartet. Er selbst erhalte aus Südkorea oder China in regelmäßigen Abständen die Anfrage der großen Containerreedereien, wann es denn endlich mit der Elb-Vertiefung soweit sei. Zu den ebenfalls wichtigen Infrastrukturvorhaben Hamburgs gehört für von Beust der Bau der so genannten Hafenquerspange ? als dem Verbindungsglied zwischen A 1 und A 7 ? quer durch den Freihafen. Der Bürgermeister räumte ein, dass das Projekt gerade in den südlichen Stadtteilen Hamburgs, durch die ein Teil der Trasse verlaufen wird, nicht nur Befürworter hat. Von Beust: ?Ich prophezeie Ihnen: Ganz ohne Ärger geht das nicht.? Doch zu dieser autobahnähnlichen Straßenverbindung gäbe es keine Alternative, wenn der Hafen nicht an den eigenen, weiter steigenden Verkehrsmengen ersticken soll. Von Beust: ?Liegeplätze allein bewirken nichts, wenn die Güter am Ende nicht abtransportiert werden können.? ?Im Zeitplan? sieht der CDU-Spitzenpolitiker die Stadt hingegen mit der angestrebten Umgestaltung des ?mittleren Freihafens?, innerhalb dessen Grenzen der neue Containerterminal Steinwerder (CTS) entstehen soll. Die große Herausforderung hier sei die Umsiedlung von zahlreichen Betrieben ? ?ein hochsensibles Thema?, wie von Beust einräumte]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=20 http://www.seatransport.co.il/en/dynamic/news//?id=21 In a brief trading update, it said earnings rose to EUR 38.3m ($45.82m), from EUR 27.4m in 2004.


It had predicted a rise of between 20% and 30% in December.


Despite facing a heavier tax burden of 30%, up from 24% in 2004, its towage and heavy lift activities improved and its salvage division “performed well above the so-called historical average,” it said.


Smit will provide a more detailed breakdown when it publishes its full 2005 results on 9 March.


Last December it acquired a 50% stake in Brazilian harbour towage firm Rebocadores do Brasil (Rebras) for an undisclosed sum.


The company, to be renamed SMIT Rebocadores do Brasil, operates three harbour tugs which are chartered out on a bareboat basis.


But the Dutch group has already outlined a major expansion for the company with plans to operate a “minimum” of twenty tugs in the 45 to 65-ton bollard-pull range.]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=21 http://www.seatransport.co.il/en/dynamic/news//?id=26

Oslo and New York-listed Frontline is moving into the market for heavylift vessels by converting up to six of its single-hull suezmax tankers.

A contract has already been signed with a Far East-based yard for the conversion of the 150,000-dwt Front Traveller and 142,000-dwt Front Target (both built 1990). The conversion will be completed in November this year. Frontline has an option to convert another four units for delivery next year.

Oscar Spieler, managing director of Frontline Management, confirms the plans and says the conversions "are purely speculative" but he suggests the booming rig market creates a strong demand for such tonnage and that converted suezmax tankers will represent a flexible solution. He declines to comment on the price of the conversions.

The ships will be much larger than other heavylift tonnage. The biggest heavylift ship now trading is the 76,000-dwt Blue Marlin (built 2000), owned by Dutch heavylift specialist Dockwise. That company recently ordered a 57,000-dwt vessel from Yantai Raffles in Shandong.

Spieler says the idea is for Frontline to build up a dedicated team to run the heavylift operation but that the company is open for co-operation with other companies, including Dockwise.

"Our concern is only to maximise profits for our shareholders," he said.

Frontline is not the only company moving into heavylift.

Awilco Heavy Transport (AHT) of Oslo last year entered into the sector after buying two 1981-built aframax tankers, which are being converted at the Remontowa shipyard in Poland. The company paid $10m each for the ships, which will have a delivered cost of $56.5m each. The vessels are set to be handed over in August and November this year.

Meanwhile, Frontline has also agreed to start taking Norwegian trainees onboard its ships. The company will give 20 students who have completed their maritime studies at Hogskolen i Vestfold 12 months work.

"There is no guarantee that they will get permanent jobs but we always are in need of talented people," said Spieler]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=26 http://www.seatransport.co.il/en/dynamic/news//?id=23 18 Aug 2005




Suitors wanted for Gdynia Shipyard
COMPONENTS of Polish shipbuilding are sought after by Western investors, but something keeps emerging to hold things up. A recent potential project involving Polish yards reportedly involved global container carrier Mediterranean Shipping and Ray Car Carriers (RCC) of the Isle of Man, with backing from Israeli shipowner Rami Ungar – a 16% shareholder in Gdynia Shipyard. Last year Ungar bought out Zl56M ($17M) of debt from Kredyt Bank and later exchanged it for shares. MSC and RCC were reportedly interested in the yard and the European engine builder H Cegielski Poznan. They were understood to have offered a Zl150M buyout a month ago. However, Dariusz Adamski, who heads the yard’s Solidarity trade union, told reporters that the response from the economic ministry caused the shipowners to walk away. The ministry insisted that the deal should involve Korporacja Stocznie Polskie (Polish Shipyards Corp), which was set up to restructure shipbuilding.

But MSC and RCC were interested only in the yard. After they withdrew, the ministry made another offer but it was apparently ignored. The ministry’s AID management agency for privatisation has refused to comment about the talks. With its elected period running out and facing likely defeat in the approaching elections, the Polish government will probably not interfere with shipbuilding, even though Polish yards urgently need capital to complete restructurings. Gdynia Shipyard received a Zl40M capital enhancement from AID, which helped reduce losses to Zl70M last year, from Zl200M in 2003. Arkadiusz Krezel, AID’s president, tells Fairplay the agency is auditing the yard, with findings expected by the end of this month. Half-year results indicate net losses of Zl65M for the yard.

But managers hope for a positive result for the full year, even though steel prices not dropping as predicted. The rationale for this thinking is that not many ships were delivered in the first half of the year, while costs were attached to initial construction stages for many others. These ships will now be sold in the second half and therefore generate profits, thus enabling the first half-year loss to be overturned. As Fairplay went to press, the Gdansk yard, part of Gdynia Group, was building two ships of the 8184 type and producing ship sections for Gdynia Shipyard. At the Gdynia yard, seven ships are under construction: three container ships of 4,400-4,500TEU, two large car carriers and two prototype, smaller PC/TCs.

By the end of 2005, the whole yard group will have 13 ships delivered, totalling a sales value exceeding $567M. Five of these were delivered before August – three built at Gdynia Shipyard and two units built in Gdansk. Gdansk’s most recent christening and launching was the container ship Passat Breeze on 5 August. Its financing was facilitated by a loan from Nord/LB Bank Polska Norddeutsche Landesbank, with guarantees from the Polish government. The Germanischer Lloyd-classed ship at 39,100dwt has container capacity of 2,700TEU, including 300 refrigerated boxes. Its top speed is 21.5kt, thanks to its 21 735 kW Cegielski MAN B&W 7S70MC-C main engine. Gdynia Shipyard, known in recent years for its lengthy series of very large car carriers, is now outfitting its first unit (of four contracted) of the rather smaller 8245 design. Elbe Highway, launched on 16 July, is for RCC, with a likely delivery date of next month. The 7,750dwt PC/TC can carry up to 2,130 standard cars of Japanese RT-43 type (equivalent to the Nissan Bluebird) on its eight internal decks, which provide 17,500m². The DNV-classed ship has two stern ramps and generates 18.9kt with its Cegielski-MAN B&W 7S46 MC-C main engine. The ships are being built through loans from PKO Bank Polski bank.

COMPANY PROFILE:
Full company name:
Stocznia Gdynia SA
Formed: 1922
Employees: 6,300
Head office: Gdynia, Poland
Latest results:
2003 losses: over Zl200M ($62M); first-half 2005: Zl65M
Leading shareholders: as of 4 May
Ministry of State Treasury: 37.743%
Ray Car Carriers: 16.058%
Corporation Polskie Stocznie: 11.607%
Stoczniowy Fundusz Inwestycyjny: 8.551%]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=23 http://www.seatransport.co.il/en/dynamic/news//?id=24 Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=24 http://www.seatransport.co.il/en/dynamic/news//?id=25 TAKE-OVERS, mergers, acquisitions, consolidation. Call it what you like. The cruise industry is abuzz with likely changes (so what else is new!) that could radically alter the industry’s balance. Principal among them, of course, is the circling of P&O Princess by Carnival Corp (CC) and Royal Caribbean (RCCL), but P&O may not be the only prey.

Star Cruises, the world’s number-four cruise line and perhaps soon to be number three, has already opened the door to a potential merger. In truth, what appears to be a dramatic shake-out is merely another phase in the metamorphosis of a relatively young industry that is still defining itself and being defined by consumers.

The world’s three largest cruise companies may have to wait for the better part of a year before anti-trust regulators on either side of the Atlantic work through the details of both deals and make their decisions.

The possible permutations stemming from the hands already on the table are many, but the general consensus among industry analysts is that both CC and RCL will at least wait to see what the regulators say. The proposed $7Bn RCL-P&O merger has already been approved by Germany’s hard-line regulators, giving the company a fillip as it awaits word from authorities in Britain and the US Federal Trade Commission (FTC). Carnival’s $5.4Bn bid must be approved by both the FTC and EU.

The ultimate outcome is clouded by some of the personal dynamics involved. Carnival chair Micky Arison’s Israeli father Ted founded the company, and the family controls 47 per cent of the stock. The Arison family’s intense rivalry with that of fellow Israeli shipping magnate Eyal Ofer may extend to stymieing his bid for a share of the world cruise crown. Ofer and Hyatt Corp chair Thomas Pritzker’s Cruise Associates would own more than 12 per cent of any RCL-P&O combination.

As Florida-based cruise analyst Murray Markin of Strategic Decisions observes, "So much of the industry these days is about personalities. An ability to get along is part of the mix. It’s the oil and water factor. It’s not just pure business any more."

Some P&O shareholders are also wary of Cruise Associates’ ally and fellow RCL director Arne Wilhelmsen, whose Oslo-based shipping and investment company, Anders Wilhelmsen & Co, would hold almost as much stock in a cruise merger. The three men would wield 24.25 per cent of voting power – just 0.75 per short of the clout to veto proposals requiring the standard 75 per cent shareholder approval. Fellow RCL director John Chandris, through Archinav Holdings, would control 1.95 per cent of merged stock and has indicated he would back the other big three RCL players in any vote.

The current consolidation battle has given other lines cause to evaluate their relative positions and that of the industry as a whole. Mark S Conroy, chair of the Cruise Lines International Association (CLIA) and president/CEO of Florida-located luxury operator Radisson Seven Seas Cruises, told Fairplay: "The consolidation issue has no real immediate impact on me at Radisson, but I do have some concerns. Consolidation may produce such big players that they’ll think they become the cruise industry almost by default, which makes it hard for everyone else to get their message across."

Conroy does worry about market power: "If you have a bigger share of the market, you can also affect the travel agency distribution system. You can approach a big group and say ‘If you deal with Radisson we’ll hurt you.’ You have to be careful about hurting the industry because the cruise industry is not like air travel [in the US] where people have to take planes. Nobody has to take a cruise. If they don’t like what’s on offer, they’ll do something else with their money. They’ll visit Disney or travel to Europe."

Travel agents are adopting a wait-and-see attitude, having been the meat in the sandwich before when some cruise lines spat them out because they did not like the taste of returns. In the week before last September’s terrorist attacks in the US, Carnival unilaterally slashed in half the agents’ commission on the air leg of cruise packages, calling it "a positive move since… commissions are the biggest component of expense that impacts the bottom line." Other cruise lines followed suit. Post-September 11, the cruise companies changed their tune and were wooing the agents with new, incentive-based commissions to try to generate business in a spooked market.

It is no secret that many agents feel used and squeezed by cruise companies. There are now fewer than 25,000 full-service travel agencies in the US, down from 35,000 a few years ago.

Mark Conroy, wearing his hat as CLIA chair, says the cruise industry has to be careful not to let consolidation hurt agents. "We need to treat them more professionally and help ourselves by helping them make more money. The agents are important to us because they’re putting more fish in the pond. We [the cruise lines] are just a feeder on the rim. They’re growing the pie if you like."

Bill Leiber, senior VP sales and marketing for Florida-based ultra-luxury operator Silversea Cruises, is not only unfazed by consolidation, but sees benefits for the industry in the way products are sold.

What we’re seeing is a merger of brands and elements in the distribution channel," he told Fairplay. "We seem to be heading towards much more opportunity for a kind of dealership concept whereby agents are committed to one company." That would mean commission benefits for an agent who specialises in selling only one cruise company’s brands. Commissions could be linked to productivity levels per brand. "They’ll become knowledge-based experts who’ll be true consultants," says Leiber.

"It’s so damned competitive now," he sighs. "Each brand has its own identity. Some brand uniqueness may disappear, but I’m not concerned about consolidation. That’s the way the world operates. If customers don’t want to be required to go with the flow and they want uniqueness, they’ll go to individualised companies which is the way we’ve positioned ourselves."

Leiber sees it "a bit like the entertainment industry. You’ve got your major studios and you’ve got your megaplexes [multi-screen cinema outlets] showing mass appeal films like a Robocop 2, but there’s still a market for films for independent thinkers."

Agents are not the only cruise players feeling shivers from the winds of consolidation. Some nations in the Caribbean, the regional economy of which has become heavily cruise-reliant, felt nervous after what they perceived as some cruise companies’ knee-jerk reactions post-September 11. One veteran Caribbean port authority manager who did not wish to be named told Fairplay: "They were pretty quick to try to cut corners and screw [Caribbean] ports on charges and schedules and that left an unpleasant taste in some people’s mouths."

Asked what effect cruise line consolidation may have on his region, such as rationalised port calls, he said: "These guys already act like the Florida Mafia the way they push their weight around so it’s only going to make them worse. Our politicians go knocking on their doors in Miami, looking for crumbs off the table, so who knows how they’ll divide the scraps if they get any bigger?"

Star Cruises, the world’s number-four cruise company, appears decidedly relaxed about consolidation. Indeed, the Malaysian-based company believes if it were swept up in the consolidation current, it would give the company greater flexibility and more opportunities. Chief operating officer Chong Chee Tut says: "If somebody knocks on our door with the right offer, we will be interested." But he quickly points out that there has been no active interest thus far. The company still bears bruises from its 2000 brush with Carnival. The two tussled in January of that year for control of Oslo-based NCL Holdings, parent of Norwegian Cruise Line. In the end, Carnival pulled out and Star had to borrow almost $800M to finance the take-over.

The 19-ship Star group, also including Orient Lines, is controlled by Kuala Lumpur’s Genting leisure conglomerate, headed by self-made billionaire Lim Goh Tong, which has global tentacles in the casino, hotel and resort industries. Its business, heavily Asia-focused, has accumulated $38M in net losses in the past two years (mostly in 2000), which included the acquisition of Norwegian Cruise Line. It has cut salaries, centralised back office functions and squeezed capital expenditure as part of "necessary measures" to turn the company around. It also wound back loss-making operations in Japan and Taiwan and will add a second ship, Norwegian Wind, to the growing Hawaii market this year.

A UK daily newspaper reported in early February that Carnival might try to acquire Star as a fallback position if its bid for P&O fails, postulating that regulators probably will not okay both deals. An unidentified analyst was quoted as saying it "would be a great wrecking strategy for Carnival" and would "frighten the regulators". A Carnival-Star bloc would deliver 62 ships and 84,000 berths, which compares with Carnival’s proposed P&O embrace, which would produce 54 ships and 81,000 berths.

Radisson’s Mark Conroy does not underestimate Carnival. "Consolidation is all about adding value. Carnival’s acquisition of Holland [America Line] is a good example. Holland has boomed. Carnival has also grown Costa. But Carnival is not a fixer. It doesn’t have a great track record picking up troubled lines. It’s not a great turnaround company."

Cruise analyst Murray Markin believes there is little room for much more consolidation after discounting the big three (CC, RCL & P&O). "There’s really not that much left, although you never know what Micky [Arison] is going to do. Maybe Carnival will go back after NCL. Maybe Radisson, but I doubt it. Who knows?

The reasons for consolidation are picking up brand values and/or lessening competition. The current battle doesn’t change the balance much. It’s not about getting more ships. It’s just nice not to have another competitor. I think RCL will have less opportunity to grow through diversification. Looking at the bigger picture, some of the smaller operators [in the US] could be in trouble in a consolidation environment," says Markin.

One cruise company senior executive told Fairplay: "Silversea is one to watch. They are going to have to ask themselves if they’re going to be a business." Controlled by the Lefebvre family in Rome, former Sitmar Cruises owners, the Fort Lauderdale-based company trimmed its sails in the post-September 11 environment, shedding ten per-cent of its shore-side workers, outsourcing some in-house services and mothballing one of its four ships until 2003. The Silver Wind is being refurbished in Genoa and will resume service next March, operating in Asia.

Overshadowing all talk of consolidation, year 2001 continues to weigh heavily upon the industry. As one US cruise company publicist told Fairplay, "Nobody would be foolish enough to look too far ahead any more after what happened on September 11. It made us realise we’re all more vulnerable than we could ever have thought – and that means we still are."]]> Thu, 01 Jan 1970 02:33:26 +0200 http://www.seatransport.co.il/en/dynamic/news/item/?id=25