HISTORIC Shannon Airport, near Limerick in the west of Ireland, where the duty free shop and Irish Coffee were born when the first transatlantic commercial flights arrived gasping for fuel, now hopes to escape limbo as a specialist aviation centre, reports Dublin's Irish Times.

Irish Transport Minister Leo Varadkar said the proposal would seek to attract new industries "that don't exist in Europe, such as aircraft refitting and aircraft recycling".

Speaking at a Shannon Chamber of Commerce, Mr Varadkar said: "It is my intention to do something very exciting and very innovative for Shannon that will recapture that early spirit that was there with the pioneers of aviation in this region.

"The model we are most likely to propose for Shannon is the development of an international aviation-based services centre for the region based around Shannon airport and the lands around Shannon," he said.

Now independent from the Dublin Airport Authority, Mr Varadkar said he will propose to government that a tax-incentivised international financial services centre-type model for the aviation industry be established at Shannon.

"My personal preference for Shannon is to end the current half-way house that isn't working and give Shannon the tools it needs to turn the situation around to get passengers, employment and investment up," Mr Varadkar said.

On Shannon's estimated EUR100 million (US$1.33 million) debt, Mr Varadkar said: "It is obvious that if Shannon is to succeed it won't be able if it starts off with a debt of EUR100 million, and doesn't have working capital to invest and absorb losses in the initial years if there are losses."

Source Shipping Gazette - Daily Shipping News

According to the online data of the main operational department, in March, the staff of the Odessa port handled 2 million 651.4 thousand tons of cargoes, which is 435.3 thousand tons (19.6 percent) more in comparison with the same month of 2011. These results were achieved through a significant increase in processing of dry cargoes - 680 mln.tons (435.3 tons, nearly 40 percent.) relatively to 2011. For the first quarter 28 percent of dry cargoes are handled, more than in January-March last year. In March, therer was the growth in ferrous metals handling (44 per cent.), cereals (381 percent), containers (+471 TEU).

Source OCSP

 

Malaysia’s growth, stability and workforce cited as reasons for move

PHILADELPHIA, KUALA LUMPUR, April 3, 2012 – BDP International has opened another Global Services Center (GSC) in Petaling Jaya, Malaysia. The U.S.-based, global logistics and transportation services firm opened its first such center in Kuala Lumpur in March 2008.

“Its impressive economic growth and political stability made Malaysia an extremely attractive place to increase our investment in the region,” said Richard Strollo, managing director of BDP South Asia. “It has a substantial manufacturing base, is a major oil exporter and is situated on a key international trade route. What resonated most, however, was the extraordinary quality of the country’s workforce, both in terms of skill sets, motivation and productivity.”  

The new center will offer the same services as the first center, including import/export container and shipment tracking, SAP data entry, shipment data entry and billing and documentation, as well as Import Security Filing for ex-USA shipments. It will use standard operating procedures developed in the first center in serving its predominantly U.S. and European clients. In addition it will work with clients to customize the processes they outsource to BDP.

The new center is now fully operational, bringing together total of 125 number of logistics professional staffing the company’s two service centers.  Directing the activities of both is Paramalingam Mahalingam, general manager of BDP Global Services Centres, who reports directly to Strollo.  

Source BDP International

DANISH shipping giant Maersk Line has announced it will impose general rate increases (GRIs) for Asia to US west and east coast-bound cargo from May 1.

For Asia-US west coast services, the rates will increase US$400 per TEU, $500 per FEU, $565 per 40-foot high cube and $630 per 45-foot high cube container, according to its company statement.

For Asia-US east coast loops, the GRI will be $560 per TEU, $700 per FEU, $790 per high cube and $885 per high cube box.

Source Shipping Gazette - Daily Shipping News

FITCH RATINGS, one of the top three rating agencies with Moody's and Standard & Poors, says banks have been pulling back from ship financing due to the downturn within the industry, worsened by increasing funding pressures in the banking sector.

Low charter rates, driven by an oversupply of ships, has caused a steep drop in the value of ship fleets, resulting in rising loan-to-value ratios, said the report.

Fitch said it expects industry overcapacity to continue until 2014, when increased scrapping rates, reduced ship order books and an improvement in global demand should bring the market closer to equilibrium.

Overcapacity is specific dry bulk, container and crude tanker sectors, for which the 2008 order book was exceptionally large. The oversupply of ships, coupled with lacklustre growth in world trade, has caused a significant drop in shipping charter rates, it said.

"Asian banks have increased their activity in ship financing in recent years but are mainly active in their home region, with a significant global expansion unlikely in the near term," said the report, while "euro-funded banks are finding US-dollar funding more costly and less accessible, making financing new business less attractive".

The difficulty in financing ships is worsened by the reduced availability of other lenders, which limits the scope for syndication and makes shipping loans more difficult to exit, it said.

"Significant new ship orders in 2008 mean that a large amount of new ships are expected to enter world fleets in 2012-2013. Combined with subdued growth in global demand, there is now significant overcapacity in the industry," the report said.

"Opportunities for banks remain, particularly in stronger-performing shipping segments such as liquefied natural gas (LNG) transportation and offshore," said the Fitch Ship Financing Report.

"Banks that can maintain market presence in the near term may also benefit from higher margins in the short-term and fewer competitors once the industry recovers," said the report.

Fitch said it expects impaired loans and impairment charges relating to ship finance to continue at heightened levels or increase somewhat in 2012 and 2013. However, bank ratings already factor in this risk, so any ratings impact is unlikely.

"Shipping is a highly cyclical industry meaning that credit ratings for shipping companies tend to be sub- or low-investment grade and so absorb higher amounts of risk-based capital. Further deterioration in the credit quality of shipping exposures would increase the risk weightings of ship finance in banks' balance sheets - and hence their capital charge," said the report.

Source Shipping Gazette - Daily Shipping News

NEW ZEALAND's Ports of Auckland (PoA) has reversed itself, ending the contracting of independent stevedores to hire replacements for the 300 dockers it sacked last month in the course of bitter contract talks.

The decision to re-instante the sacked dockers came before an Employment Court hearing. This means the dockers will work while the PoA and the Maritime Union of New Zealand [MUNZ] return to the bargaining table.

PoA chief executive Tony Gibson said his plan to bring competitive stevedoring to the strike-plagued port was "on hold", saying he was "acutely aware" customers and their businesses were being hurt by the dispute, reported London's Containerisation International.

"PoA has listened to wishes of the court, as well as the views of the mayor and all other stakeholders," said Mr Gibson. Union president Garry Parsloe said he was "elated" by the decision. "We're going to tell our blokes that it's back to work," he said.

Source Shipping Gazette - Daily Shipping News

DENMARK's AP Moller-Maersk is considering whether to invest US$83 million in the construction of a proposed new navigational channel at Port Said's Suez Canal Container Terminal (SCCT), according to the Egyptian Ministry of Transport, reports UK's Port Technology International.

Situated at the mouth of the Suez Canal on the Mediterranean Sea, the terminal is being expanded in a Phase II development project, to double capacity from 2.7 million TEU to 5.4 million TEU per annum.

APM Terminals, part of the same Danish shipping conglomerate, holds 55 per cent in SCCT, a private joint venture that began operations in 2004.

The Phase II expansion project will also double the quay length from 1,200 metres to 2,400 metres, deepen the terminal's draft to 16 metres, and will equip the terminal with an extra 12 super-post Panamax cranes, which will bring the number of such cranes at the facility to 24.

Source Shipping Gazette - Daily Shipping News

TIBET plans to invest CNY9.5 billion (US$1.5 billion) in road transport construction this year including mainline highways, rural highways and highways for border defence and linking temples, reports Xinhua.

The Tibetan government will work out solutions of road connectivity for 411 villages and 17 rural towns, and invest CNY300 million in building roads linking temples, said a statement of the region's transport department.

The region invested CNY8.5 billion in 15 transport projects to build 4,600 kilometres of new highways in 2011, growing to 63,000 kilometres and linking 273 villages. At the same time, an expressway from Lhasa to Gonggar Airport has opened, brought to an end the region's history without a single expressway.

Tibet will invest CNY46.17 billion in road transportation by 2015 according to its development plan, growing 178 per cent against the previous five years.

Source Shipping Gazette - Daily Shipping News

THE US Harbour Maintenance Tax (HMT) is like having the "government tax McDonalds to build bigger Burger Kings", California Democratic Congresswoman Grace Napolitano told a congressional committee hearing recently.

"We must correct and fix this inequity," she told the House Water Resources and Environment Subcommittee, referring to a tax where the bulk of the money is raised from busier ports to pay weaker rival ports, who pay far less, to compete more effectively.

Ms Napolitano said it was unfair to the Port of Los Angeles and Long Beach, which receives US$265,000 from the Harbour Maintenance Trust Fund (HMTF), but contributes $220 million, so rival ports can take cargo away from southern California.

She said a minimum amount should be appropriated to the port where the money is raised, and the fund should pay all costs maintaining harbours deeper than 45 feet, reported American Shipper. Today, fund only pays all costs for ports with less than a 45 foot draft; local governments or port authorities must fund the rest themselves if they have more than a 45-foot depth.

Minnesota Republican Congressman Chip Cravaack said there was a $7.1 billion surplus in fund which should be used for dredging. "Why are we having such difficulties getting our harbours to the widths and depths that are needed?"

On the subject of the 2013 budget for the Army Corps of Engineers, which contracts such work, Ohio Republican Congressman Bob Gibbs, chairman of the committee, said President Barack Obama only wants to spend half the money collected in the HMTF, which is funded by the Harbour Maintenance Tax, a 0.125 per cent tax on the value of imports.

"Once again, only two of the nation's 10 largest ports are at their authorised depths and widths. The president's budget does nothing to ensure the competitiveness of American products in world markets. That hurts businesses and costs us jobs," said Mr Gibbs.

President Obama asked $4.7 billion for the Army Corps of Engineers to spend, which was 5.5 per cent less than Congress authorised in 2012, Mr Gibbs said.

While Mr Gibbs said he supported cutbacks in federal spending, many of the Corps of Engineers' activities are "true investments in America because they provide economic return and jobs".

Major General Meredith (Bo) Temple said the Corps of Engineers was restrained by both the need to prioritise dredging projects and the limited amount of money that is appropriated.

"There is no question that constrains us in most cases from providing the authorised dimensions of the channels," General Temple said. "It is our purpose to ensure that the channels are of sufficient dimensions to ensure the safety and economic success of that particular harbour."

Source Shipping Gazette - Daily Shipping News

THE air cargo industry's practice of levying surcharges has been attacked for being an "easy means of fixing prices", according to European Shippers Council air freight policy adviser Joost van Doesburg.

Mr van Doesburg said that surcharges ought to be a part of the overall rates, he told London's International Freighting Weekly. His comments followed the European Commission awarding fines totalling EUR169 million (US$225.5 million) to some of the biggest air forwarders in the industry.

"Once again, there is proof that something is wrong with surcharges in the supply chain," said Mr van Doesburg.

"We want to change the system so that it is much more transparent and shippers can clearly calculate their costs. Surcharges should be for a short period of time, or be an actual expense. We don't want to pay surcharges for years when they should be part of the rate."

The European Competition Commission found that prior to 2007, Agility Logistics, Beijing Kintetsu World Express, Ceva and EGL, DHL Global Forwarding, DSV Air & Sea, Exel, Expeditors Hong Kong, Hellmann Worldwide Logistics, Kuehne + Nagel, Nippon Express, Panalpina, Schenker, UTi Worldwide, Toll Global Forwarding, UPS (as successor of Menlo Worldwide Forwarding) and Yusen Shenda Air & Sea Service (Shanghai) were in different ways involved in four cartels.

Said Mr van Doesberg: "The ESC really hopes that this activity belongs in the past and that freight forwarders will understand that price-fixing is not profitable or good for business."

Source Shipping Gazette - Daily Shipping News

DUBAI International Airport air freight volumes increased 6.5 per cent year on year in February to 157,492 tonnes, bolstering hopes of a recovery in the global air cargo this year

This after global air freight volume dropped eight per cent in 2011, according to data compiled by the International Air Transport Association (IATA).

A report by Dubai's National said economists, airlines and aircraft manufacturers expect the market will rebound this year, with Middle Eastern carriers anticipating continued growth this year.

In 2011 airlines based in the Middle East achieved a 9.4 per cent increase in demand, mainly due to Emirates Airline and Etihad Airways expanding their air cargo networks.

"Air traffic globally, including cargo, will be on the road to recovery and there might be some upside surprises," said Kelvin Lau, a transport analyst at Daiwa Securities Capital Markets in Hong Kong. "The picture will be better in the second half."

Said Etihad Airways cargo vice president David Kerr: "Etihad Airways' cargo operations saw outstanding performance in 2011 and volumes are continuing to grow in 2012 in line with capacity increases and network expansion."

Mr Kerr said cargo accounted for 20 per cent of the airline's overall revenue in 2011, with average monthly loads of 25,000 tonnes.

"In the first quarter of this year, we have seen a comparably strong performance. We expect March volumes to be very good as operations into and out of China pick up. European and American demand has also been strong and we forecast strong performance into the second quarter," he said.

Said Emirates cargo vice president Pradeep Kumar: "We are seeing strong performances into Africa, South America, especially Brazil, and Asia, mainly in areas such as temperature-sensitive (pharmaceutical) cargo and mobile phones."

"Other areas may remain under pressure until the second half, but then we see growth consolidating," he said.

IATA director general Tony Tyler said the global air freight market looked more promising, "It appears that freight markets have stabilised."FAXTEXT = Boeing's latest market review said it expected Asia to lead the air freight recovery, after IATA reported air cargo volumes in Asia Pacific declined every month year-on-year for the 12 months to the end of January.

Source Shipping Gazette - Daily Shipping News

ATLAS Air Worldwide Holdings, a global provider of outsourced aircraft and aviation operating services, has announced that its Atlas Air, Inc. unit has commenced Boeing 767 cargo services in North America for DHL Express under a long-term CMI (Crew, Maintenance and Insurance) contract.

The new service on behalf of the international express shipping company further expands Atlas Air's asset-light CMI service solution, which was launched in 2010. The company said in a statement that it expects CMI to be a strategic driver of increased revenues and earnings and improved business mix.

"By growing our CMI operations, we continue to diversify our business mix while at the same time strengthening our long-term relationship with DHL Express," said William Flynn, president and chief executive officer.

Under the agreement, Atlas Air will operate five Boeing 767-200 freighters owned by DHL in the express shipping company's North American network. The first of these aircraft started service in March and all five are expected to be operational by the third quarter of 2012.

Atlas crews will operate the aircraft on behalf of DHL on routings to and from its customer's Cincinnati hub. Depending on routes flown, the eventual five aircraft are expected to generate a total volume of approximately 130 to 150 block hours per aircraft per month.

The business also highlights Atlas Air's expansion into a new aircraft type, the Boeing 767, which is expected to become an important model in the company's fleet going forwards. The company's 767 freighter operations are said to complement its Boeing 747 freighter operations.

The company, through its Polar Air Cargo Worldwide subsidiary, also provides time-definite, 747-400 freighter network service to DHL, primarily in transpacific trade lanes.

"Our new 767 service for DHL Express is another milestone event for Atlas," Mr Flynn added. "It shows that we are executing on the strategies that are central to our business plan, demonstrates growth of our asset-light CMI business and represents an expansion of our relationship with DHL Express. It also underscores our growth into a key new equipment type and is symbolic of where we are taking the company."

Source Shipping Gazette - Daily Shipping News

For the second time in a row, MAN has emerged the number one among European manufacturers of commercial vehicles in Russia. With sales of over 7,600 trucks and 220 buses, MAN reached pre-crisis order volumes in fiscal year 2011.

Its market share for trucks of more than 12 tons was 26 percent in 2011 in the European brand segment. “Efficient transportation solutions, reliable vehicles, and the satisfaction of our customers are the three pillars of our strategy,” said Lars Himmer, Head of the MAN CIS Sales Region and Director of MAN Truck & Bus RUS. “Last year we saw clear signs of recovery on the Russian market. Our range of products places us in the vanguard of the growing trend toward efficient and ecologically sound vehicle concepts and will enable us to continue strengthening our position there,” emphasized Himmer.

As recently as the end of 2011, MAN was able to conclude two major orders in Russia. 2,188 engines ordered by the company LIAZ have already been delivered. They will mainly be used to equip city buses in Moscow as well as in St. Petersburg and other Russian cities. The order for 50 MAN city buses from the city of Vladivostok shows that MAN’s reputation in Russia is growing.

Russia is an important sales market in MAN’s international growth strategy. In order to consolidate itself further still on the Russian market as a successful manufacturer of efficient commercial vehicles, MAN is investing around €25 million in setting up its own production facility in St. Petersburg.

The middle of 2012 will see MAN start production of heavy TGS WW trucks with Euro 4 engines. In the medium term, the St. Petersburg site is set to reach a production capacity of around 6,000 vehicles a year.

Source MAN SE

MAN Diesel & Turbo has received an order from the US-based cruise liner company Norwegian Cruise Line (NCL) for the maintenance of the engines on nine cruise liners. The order is worth US$ 30 million.

The service agreement runs for four years and is being handled by the MAN PrimeServ service office in Fort Lauderdale, Florida, USA. Besides the maintenance work it also covers the supply of spare parts. During the term of the agreement, two further Norwegian cruise ships will be put into service which will then also be incorporated into the contract. The order is worth US$ 30 million.

“The order from Norwegian Cruise Line represents a milestone for MAN Diesel & Turbo and for our service brand MAN PrimeServ,” says Dr. Stephan Timmermann, the Executive Board Member of MAN Diesel & Turbo responsible for the Engines & Marine Systems and After-Sales Strategic Business Units. “It is one of the first service agreements of its kind with one of our major customers and constitutes a key After-Sales success in a very exciting cruise liner business.”

To date, 52 MAN engines with 542 cylinders from various series have been produced for Norwegian Cruise Line’s vessels, including the world’s first Common Rail large-bore diesel engine in 2007. The company’s next ship with MAN engines will be launched in April 2013.

Source  MAN SE

Chopin Airport meets over 90 per cent of IATA's recommendations for good practice in baggage handling, as shown by the analysis carried out as part of the Baggage Improvement Programme (BIP). The Warsaw airport is one of 200 airports around the world that have been invited to participate in the programme by the International Air Transport Association (IATA).

BIP aims to reduce the average baggage mishandling rate of 18.86 per 1000 passengers by 50%, resulting in $1.9 billion worth of savings for the aviation industry.

"Our goal is to ensure that 100% of bags flying to/from Warsaw will reach their destination on time and intact. This is what our passengers expect from us," said Michał Hofman, head of Chopin Airport's Passenger Handling Service.   

Participation in BIP is voluntary, but requires an invitation from the association. Chopin Airport is the only airport in Poland, and one of five in East-Central Europe to have been invited to the programme.

Implementation of the BIP project involved the appointment of a team of experts, comprising  representatives of the airport, airlines, the two biggest ground handling agents and state services. Based on thorough analysis and observation, the team concluded that Chopin Airport baggage handling processes required only minor modifications. For example, baggage check-in agents should be careful to place bags flat on the conveyor belt and use baggage trays more often. It is also important to inform sorting agents and the airline if the bag is seized for additional security screening. The team is also considering installing scanners on the inbound conveyor belts in order to quickly check whether a given bag has been sent to the baggage reclaim hall, as well as educating passengers about baggage handling activities carried out at the airport and how to prepare their bags for the journey.

"Our suggestions and conclusions have been submitted and approved by PPL's Management Board. They will be implemented soon and we expect our rate of mishandled baggage to improve significantly this year," said Michał Hofman.

Source Warsaw Chopin Airport