TODAY’S BULLETIN OF MARITIME NEWS
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- First View : MSC Sinfonia arrives in South Africa
- Transnet reports 240% increase in profits and bullish half-year
- MSC was proactive in its response to Durban beach clean-up following storm
- MSC SINFONIA kicks off South Africa’s cruise season
- MOL uses VR goggles for mariner safety training
- Fishing vessels could soon have to display identities — IMO
- New moves to have Tanzania’sd Bagamoyo port up and running
- Containers recovered from seabed of Durban Bay
- Expected Ship Arrivals and Ships in Port
- Cruise News and Naval Activities
- Pics of the Day : SWAN
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FIRST VIEW: MSC SINFONIA ARRIVES IN SOUTH AFRICA
Top picture: MSC Sinfonia leaving Cape Town during a previous season. Middle picture: passengers disembark after their 23-day voyage from Venice to Durban; Lower picture, front left to right: Port of Durban Harbour Master Captain Alex Miya receives a gift from Captain Lauro Maresca of MSC Cruises, flanked by Durban Port Manager Moshe Motlohi and (back left to right) Ross Volk, MD of MSC Cruises South Africa and Councillor Sqiniseko Shezi, representing Her Worship the Mayor of eThekwini Municipality, Councillor Zandile Gumede.
Durban. With 2,300 European and South African passengers on board MSC Cruises MSC SINFONIA arrived in port yesterday morning to ring in the 2017/18 South African cruise season. The ship had just concluded a 23-day positioning cruise from Venice and is set to make numerous sailing from both Durban and Cape Town before she heads back to the Mediterranean in about six months time.
On hand to greet the ship were dignitaries from the city and the port of Durban, including port manager Moshe Motlohi. “It gives us great pleasure to welcome MSC Cruises and MSC SINFONIA back to her South African home port each year. We are also delighted to welcome some new operators and vessels to the port this season. These 13 vessels represent 11 cruise line companies that have shown confidence in Durban as a route this season – up from seven in 2016/17,” he said. See report further below…..
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TRANSNET REPORTS 230% INCREASE IN PROFITS AND BULLISH HALF-YEAR
State-owned freight and logistics company Transnet SOC Ltd, yesterday delivered a remarkable increase in revenue for the six-months ending 30 September 2017, which it says was driven by improved operational performance and a slight rise in consumer demand and mineral production output in the country.
Revenue for the six months of the financial year rose 13,8% to R37,1 billion (2016: R32,6 billion) driven by a 7,9% increase in general freight volumes, a 6,5% increase in export coal railed volumes and a 11,4% increase in railed container and automotive volumes. Chrome and manganese volumes performed particularly well, increasing by 19,2% to 3,1mt and by 25,9% to 6,8mt respectively.
The company’s key measure of profitability – EBITDA improved by…[restrict] 17,7% to R16,3 billion. An exceptional improvement was noted in profit from operations after depreciation and amortisation which rose by 69,1% to R9,9 billion compared to R5,9 billion in the prior period.
Profit for the period is R3,4 billion (2016: R1,0 billion), a significant increase of around 240% compared to the previous reporting period.
General freight business grew volumes by 7,9% to 46,5mt (2016: 43,1mt) with the container and automotive business performing particularly well and gaining market share by contributing an 11,4% increase in volumes to 4,9mt (2016: 4,4mt).
Transnet railed a record 37,8mt of export coal volumes compared to 35,5mt in the prior period, a 6,5% increase, despite various operational challenges, including equipment failures, unprecedented community unrest and security challenges.
Poor volumes were experienced in sectors such as granite which registered a decline of 13%, as well as cement and lime recording an 8% decline in volumes due to an unavailability of mix product and plant breakdowns.
Export iron ore volumes were impacted by volatile market conditions, accompanied by lower demand from customers and a number of safety incidents reported during the six month period, resulting in a modest volume increase of 1,7% to 29,3mt.
Transnet said it is continuing to focus on cost-containment initiatives that have resulted in a R1,2 billion saving in planned costs. These initiatives include limiting overtime, reducing professional and consulting fees and limiting discretionary costs.
Operating costs increased by 10,9% to R20,8 billion due to the increase in the variable costs in line with higher volumes with resultant increases in personnel, fuel and electricity costs.
The company said that the timely delivery of newly-built and refurbished rolling stock to Freight Rail, coupled with the delivery of locomotives for the 1,064 locomotive programme, and the delivery of coaches to the Passenger Rail Agency of South Africa by Transnet Engineering has led to an increase in revenue by 29,4% to R4,8 billion in this operating division.
Revenue increased by 16,1% to R6,5 billion at Transnet National Ports Authority, mainly as a result of increases in cargo dues revenue and the release of claw back provisions informed by Regulatory decisions.
Considerable growth in local and international consumer demand has resulted in a 6,1% increase in container volumes to 2,4 million TEUs (twenty-foot equivalent units) for the six month period. Average moves per ship working hours (SWH) declined across most terminals, with the exception of Durban Pier 1 Container Terminal, which recorded some progress in their SWH performance from 45 to 47 moves.
A decline in market demand, for refined petroleum products, as well as production challenges at an inland refinery continue to hamper the performance in the pipeline operating division. Petroleum volumes transported decreased by 2,9% to 8,3 billion litres compared to 8,6 billion litres in the prior period.
Transnet says it’s fundraising and borrowing strength continues to mature and remain solid. A well-defined and diversified funding strategy has enabled the group to raise R9,9 billion for the period without government guarantees.
The funds were raised mainly from the following sources:
* Development finance institutions – R1,5 billion;
* Commercial paper and call loans – R5,8 billion;
* Export credit agencies – R1,4 billion; and
* Domestic bonds – R1,0 billion.
Transnet borrows on the strength of its financial position and has maintained its investment- grade credit rating, confirming its solid stand-alone credit profile.
A total of R9,5 billion of debt was repaid during this period.
The gearing ratio decreased to 44,0% (2016: 44,4%), a level well below the group’s target range of 50%, and it is significantly below the triggers in loan covenants. This gearing ratio level also presents an opportunity for Transnet to continue with its capital investment strategy, aligned to validated market demand.
The company’s Market Demand Strategy (MDS), which has long gained traction, has had a total of R153 billion invested in various programmes over the past five years. Transnet plans to invest a further R229,2 billion over the next seven years to 2023/24.
Transnet spent R8,9 billion on its infrastructure investment programme, a decrease of 5% when compared to the previous reporting period. The decrease is attributable to the company’s value-engineering and optimisation efforts.
The capital investment for the period represents R2,1 billion invested in the expansion of infrastructure and equipment acquisitions, while R6,8 billion was invested to sustain capacity in the rail and ports operating divisions.
Key to the Company’s investment programme is the acquisition of locomotives to modernise its railway fleet in anticipation of a rise in general freight volumes in the coming years. Transnet concluded the locomotive acquisition contracts in 2014, resulting in the purchase of approximately 1,319 new locomotives for the general freight and coal businesses over the MDS period.
Highlights of the locomotive programme, includes the following:
* A total of 541 locomotives have been accepted into operations and contracts have been concluded as follows:
* 95 class 20E electric locomotives;
* 60 class 43 diesel locomotives;
* 100 21E electric locomotives; and
* 286 locomotives of the 1 064 locomotive programme have been accepted into operations, while 37 have been delivered and are currently undergoing acceptance testing.
* 544 coal containers and 101 wagons have been built and received by Transnet Freight Rail.
Other infrastructure investment highlights for the six-months include the following:
* To date R1,9 billion has been invested to expand capacity on the export coal line to 81mtpa.
* Investment in the Waterberg region, which holds 40% of the country’s coal reserves, has reached R181 million since the inception of the programme. A total of R23 million was spent during the reporting period.
* Transnet says it has invested R560 million in the New Multi-Product Pipeline during the reporting period. The coastal terminal in Durban (excluding tanks), the 24-inch main pipeline and 16-inch inland pipelines have been fully commissioned and are operational, with four different petroleum products now being transported from Durban to the Gauteng region.
* R0,9 billion invested for the maintenance and acquisition of cranes, tipplers, dredgers, tugs and straddle carriers.[/restrict]
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MSC WAS PROACTIVE IN ITS REPOSNSE TO DURBAN BEACH CLEAN-UP FOLLOWING STORM
MSC in Geneva has responded to our report in yesterday’s Africa PORTS & SHIPS news about the spilling of nurdles into the sea.
Giles Broom, MSC global public relations manager drew our attention to a statement issued by MSC on 27 October (which was not circulated to us), which he said dated was prior to the SAMSA statement from which we quoted. This stated that MSC had already engaged the services of Resolve Marine Group, an experienced salvage and emergency response company, to conduct surveillance and assessment of Durban harbour and the affected coastal areas and to supervise the clean-up operations.
Here is the full MSC statement dated Geneva, 27 October 2017.
MSC Supports South African Beach Clean-Up After Durban Storms
MSC Mediterranean Shipping Company, a global container shipping line, is assisting with the clean-up of beaches near Durban Harbour following the freak storm earlier this month.
On 10 October, strong winds and heavy rain lashed the harbour, leading to the temporary closure of the port. The storm also devastated homes and roads inland, reportedly flooding highways and uprooting trees, in what amounted to a provincial disaster. The extreme weather damaged MSC vessels and containers, as well as ships and equipment belonging to other carriers, amid zero visibility at times. Some cargo escaped from the containers.
This triggered inquiries into whether materials that washed up on beaches two weeks later, including plastic pellets, were linked to the impact of the severe weather. Those inquiries, as well as a scientific analysis to determine the origin of the pellets, are not yet conclusive.
While the plastic pellets may not be harmful to humans, MSC is responsive to concerns about the impact on marine life and is voluntarily assisting with the clean-up.
MSC therefore ensured the appointment of Resolve Marine Group, an experienced global salvage and emergency response company well-known in the shipping industry, to conduct surveillance and assessment of Durban harbour and the affected coastal areas and to supervise the clean-up operations.
MSC understands that at least one cargo-owner customer also appointed a clean-up company, Drizit Environmental, and MSC through its external surveyors has been in contact with Drizit since its appointment.
Following an extensive inspection, the clean-up operations began during the week at Durban Ski Boat Club and are expected to continue into the weekend.
MSC is also cooperating with a directive by the South African Maritime Safety Authority (SAMSA) to assess the beaches near Durban, in line with normal protocols around marine spillage incidents. SAMSA has acknowledged that the cause of the damage in Durban Harbour was natural phenomenon.
MSC continues to assist Transnet National Ports Authority with efforts to locate missing equipment.[end of MSC statement]
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MSC SINFONIA KICKS OFF SOUTH AFRICA’S CRUISE SEASON
The South African 2017/18 cruise season kicked off yesterday morning (Monday) with the arrival of the first international cruise liner, MSC SINFONIA, at the Port of Durban.
Carrying 2300 European and South African passengers, the vessel arrived on a 23-day itinerary from Venice in Italy and was welcomed with a tug spray, marimba band and traditional dancers.
Transnet National Ports Authority’s Port Manager for the Port of Durban, Moshe Motlohi, said the Port of Durban is…[restrict] scheduled to receive 13 cruise liners this season – up from eight which called at the port during the 2016/17 season.
“It gives us great pleasure to welcome MSC Cruises and MSC SINFONIA back to her South African home port each year. We are also delighted to welcome some new operators and vessels to the port this season. These 13 vessels represent 11 cruise line companies that have shown confidence in Durban as a route this season – up from eight in 2016/17,” he added.
The global luxury cruise sector is one of the fastest growing segments in the tourism industry and has the potential to grow the economy and create jobs. Internationally the cruise market has grown from 5 million passengers to over 20 million passengers over the last 17 years.
Passenger numbers at the Port of Durban have grown from 171,510 in 2015 to 209,712 in 2016. The port witnessed an increase of 22% in year 2016 compared to year 2015.
Durban is a popular destination owing to its pleasant climate and beaches, close proximity to the two World Heritage Sites (Isimangaliso Wetland Park and Drakensberg), shore excursions, land programmes and promotion of wildlife experiences at nearby luxury game lodges.
Motlohi said TNPA was at the tail end of negotiations and would shortly finalise its Terminal Operator Agreement with KwaZulu Cruise Terminal Pty Ltd (KCT) – a Joint Venture between MSC Cruises SA (a subsidiary of MSC Mediterranean Shipping Company SA) and Africa Armada Consortium (a black empowerment partner) – which was announced as the preferred bidder for Design, Financing, Construction, Operation, Maintenance and Transfer of the new Cruise Terminal Facility for a 25 Year Concession Period in the Port of Durban.
Last year MSC Cruises Marketing Director, Alan Foggitt, said the cruise company would be replacing MSC SINFONIA in the 2018/19 season with the larger MSC MUSICA. MSC had also secured a new destination in Northern Mozambique (Pomene) to include in its regional cruise schedule.
The 13 passenger liners scheduled to call at the Port of Durban this season are: ALBATROS (Phoenix Reisen), BOUDICCA (Fred. Olsen Cruise Lines), CRYSTAL SYMPHONY (Crystal Cruises), Europa 2 (Hapag-Lloyd Cruises), INSIGNIA (Oceania Cruises), LE LYRIAL (Compagnie du Ponant), NAUTICA (Oceania Cruises), SEABOURN SOJOURN (Seabourn Cruise Line), SERENISSIMA (Noble Caledonia), SEVEN SEAS NAVIGATOR (Regent Seven Seas Cruises), SILVER Spirit (Silversea Cruises), MSC SINFONIA (MSC Cruises) and SEVEN SEAS VOYAGER (Regent Seven Seas Cruises). The South African cruise season typically runs from late October / early November to early May.
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MOL USES VR GOGGLES FOR MARINER SAFETY TRAINING
Mitsui O.S.K. Lines, Ltd. (MOL) announced yesterday (Monday 30 October) that it has developed a mariner safety education tool goggle, which uses virtual reality (VR) technology created by Tsumiki Seisaku Co, Ltd.
The tool relies on VR technology to replicate various training scenarios and work operations, until now a difficult task, offering a new level of realism and immersion. It works on…[restrict] easily portable VR goggles, which make it possible for seafarers to train safely regardless of location, onboard or in an office or training centre.
This tool will increase seafarers’ safety awareness and contribute to the elimination of onboard industrial accidents caused by unsafe behaviour in actual operation by using VR technology and defining safety measures, said the Japanese shipping company in a statement.
Initially the training content focuses on preventing accidental falls, a major cause of injuries, and will be expanded to cover other training needs.
MOL says it will introduce the tool to more vessels while expanding the range of simulated experiences to provide more training in onboard safety.
“MOL strives to increase safety awareness among mariners who are on the front lines of vessel safety, aiming at safe, stable cargo transport as it forges ahead to become the world leader in safe operation.”[/restrict]
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FISHING VESSELS COULD SOON HAVE TO DISPLAY IDENTITIES – IMO
Fishing vessels on international waters may soon be expected to display their identities prominently, in the form of flags of States in which they registered, should the International Maritime Organization (IMO) Assembly pass a resolution proposing this at its scheduled meeting in November 2017.
This is according to the IMO in an article published on Thursday last week reflecting on progress achieved during a five day seminar for Anglophone African countries held in Cape Town earlier in October that focused on an agreement on global fishing vessels safety being canvassed for ratification and implementation.
The seminar held at the Castle of Good Hope…[restrict] from Monday to Friday (16-20 October) was the second for African countries and seventh in the series since the founding of the IMO ‘Cape Town Agreement by 58 countries in the same city five years ago.
Sandra Rita Allnut (pictured), the head of Maritime Technology in IMO’s Maritime Safety Division led the IMO team for the Cape Town seminar attended by 10 Africa Anglophone region countries last week, and in her view, the gathering achieved its main objectives.
Earlier seminars organized jointly by the IMO and the Food and Agriculture Organization (FAO) were held in the Cook Islands (28 August – 1 September 2017), also involving 10 countries in the Pacific region; in Côte d’Ivoire (December 2016), for 12 countries from the Africa Francophone region; in Indonesia (April 2015), for 11 countries from the East Asia region; in Belize (October 2014), for 13 countries in the Caribbean; and in Peru (June 2014), for 12 countries in Latin America.
The aim of these seminars according to Ms Allnut was to promote ratification of The Cape Town Agreement 2012 as a means to bringing into effect the provisions of the 1977 Torremolinos International Convention for the Safety of Fishing Vessels, which was later modified by the 1993 Torremolinos Protocol.
In ratifying the 2012 Agreement, she said, IMO member States would be giving consent to amendments to the provisions of the 1993 Protocol, thereby facilitating their coming into force as soon as possible thereafter.
In terms of the arrangement this would require at least 22 IMO member States to give effect to the treaty coming into force in no less than 12 months after endorsement.
However, additional conditions include that the agreement ratifying member States operating on the high seas would need to have an aggregate 3,600 fishing vessels of 24 metres in length and over, collectively.
So far, only seven countries have ratified the Cape Town Agreement: Congo, Denmark, Germany, Iceland, Netherlands, Norway and South Africa and together, they have an aggregate stock of 884 fishing vessels of 24 metre in length and over, operating on the high seas.
At conclusion of last week’s seminar at Castle of Good Hope in Cape Town, an undertaking was given that South Africa, actively and closely working with the IMO, would assist African countries with legal and technical expertise where needed.
South Africa would also share such other expertise as may be necessary including a draft of regulations aimed at giving effect to ratification and implementation of the IMO Cape Town Agreement.
Meanwhile, in an article by the IMO on Thursday, reflecting on the South Africa hosted seminar last week, the organization said moves to promote global safety of both fishing vessels as well as fishing workers were gaining ground in a number of key areas.
According to the IMO, these included the entry into force of treaties under the International Labour Organization (ILO) and the FAO – among these, the ILO’s Work in Fishing Convention 2007 (Convention No. 188) effective 16 November 2017.
The treaty sets minimum requirements for work on board fishing vessels, including hours of rest, food, minimum age and repatriation.
In addition, a number of proposals to address illegal, unregulated and unreported (IUU) fishing, focusing on key areas of vessel identification; flag and port state performance; training and implementation of relevant instruments; and environmental issues were recently agreed by the IMO’s Sub-Committee on Implementation of IMO Instruments (III).
In further progress, in late November 2017, the IMO Assembly is expected to adopt a resolution to extend the IMO ship identification number scheme, on a voluntary basis, to all fishing vessels that are more than 12 metres in length and authorized to operate outside waters under national jurisdiction of the flag State.
According to the IMO, the move is anticipated to contribute to the maintenance of a global record on registered fishing vessels.
To read the full IMO report published on Thursday, CLICK HERE.
Read also our report on 17 October International maritime agreement seminar on safety of fishermen and vessels globally underway in Cape Town CLICK HERE[/restrict]
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NEW MOVES TO HAVE TANZANIA’S BAGAMOYO PORT UP AND RUNNING
According to newspaper reports in Tanzania, the Deputy Minister for trade, Industries and Investment, Engineer Stella Manyanya, has confirmed that the proposed new port at Bagamoyo will be up and running by 2021.
The deputy minister was addressing a Parliamentary Standing Committee on Industries, Trade and Environment in Dodoma when she said construction of the new port, which is to be developed by a combined venture involving China and Oman, would shortly get underway.
The new port will…[restrict] support some 190 industries that have been identified for the Bagamoyo area, including a manure processing establishment financed by the government of Oman.
The project is being carried out by the Chinese based company Merchants Holdings International Company Limited (MHICL) and the State General Reserve of Oman.
On 16 February this year the then Chinese Ambassador to Tanzania, Dr Lu Youqing, said the Bagamoyo project would turn Bagamoyo into Tanzania’s Shenzhen, a city in China which was transformed into a Special Economic Zone area.
The ambassador pointed out that MHICL, which is implementing the Bagamoyo project, also developed Shenzhen.
The port and special economic zone will be developed in stages.
Tanzania’s deputy minister Manyanya said the strategy was for Bagamoyo to be offering services by 2020, with big cargo ships able to use the new port. source: Tanzania Daily News[/restrict]
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CONTAINERS RECOVERED FROM SEABED OF DURBAN BAY
South African Maritime Safety Authority (SAMSA) said yesterday that it has been working around the clock monitoring mop up operations carried out by independent service provider Drizit Environmental, cleaning beaches and shorelines from Richards Bay to Umkomaas.
The activity follows in the aftermath of the big storm of 10 October in which …[restrict]ships broke their moorings, some went aground and others lost some of their containers. A number of straddle carriers on Pier 1 were blown into the waters of Durban Bay.
Meanwhile, operations to clean up the tens of millions of tiny plastic nurdles that were released from a container into either the bay or the open ocean, is continuing. SAMSA said last night that four containers had gone missing.
“In the last few days a mixture of plastic cargo has been found in some parts of the ocean. They had washed up along some of the beaches,” SAMSA said.
“Bad weather and strong winds has hampered much of the clean-up. However, the operations resumed this morning,” said SAMSA’s Principal Officer Captain Hopewell Mkhize.
“We have worked around the clock to monitor the clean up and get regular updates. Since the storm on 10 October we have been mindful about the environmental risks and have acted in accordance with safe and clean measures to avoid contamination of the ocean.”
The clean-up operations started on Durban beaches while assessments are still ongoing in other parts of the province.
“We need the teams to carry out their work now and within a week we will meet again with all parties to assess the clean-up and what further steps to take,” Mkhize said.
He said he was confident that only four containers went missing during the storm and they have all been recovered. He thanked the local communities and beach goers for their assistance in identifying washed up plastics and reporting them to authorities, and in some cases assisting with removing it from the ocean.
On Saturday 28 October the retrieval of the last two shipping containers which were found in the sea bed of the Durban Harbour was carried out. A team from TNPA worked on the retrieval of the containers. Its divers attached chains from the floating crane, INDLOVU, to the containers to assist in lifting them from the bottom of the bay. The process lasted up to two hours in rainy weather.
Divers also retrieved some plastic debris which was afloat after the containers surfaced.
Pictures courtesy SAMSA[/restrict]
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CRUISE NEWS AND NAVAL ACTIVITIES
QM2 in Cape Town. Picture by Ian Shiffman
We publish news about the cruise industry here in the general news section.
Naval News
Similarly you can read our regular Naval News reports and stories here in the general news section.
The heavylift cargo ship SWAN (30,060-dwt) was a recent visitor in Durban, having arrived in the port on Saturday 28 October to take bunkers and supplies. Her decks are loaded with shoreside shiploaders, bound for the US port of Savannah. The vessel was built in 1981 as a tanker, but was later converted for heavylift type project cargo. Owned and managed by Anglo Eastern Shipmanagement of Hong Kong and operating in the Dockwise pool she was built in Norway at the Kaldnes Mekaniske Verksted shipyard in Tonsberg. She flies the flag of Curacao and appears to have retained the name Swan in her various names since at least the late 1980s, having been DYVI Swan, Swan HL and Sea Swan at different times. Swan sailed from Durban yesterday bound for her next port of call at Walvis Bay before making the trans-Atlantic crossing. These pictures were taken by Keith Betts – as the ship attracted has considerable attention we are fortunate to have a small selection and will be showing others at a later stage.
THOUGHT FOR THE WEEK
“Study me as much as you like, you will never know me. For I differ a hundred ways from what you see me to be.”
– Rumi
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