MARITIME NEWS DIGEST Volume: 03 Issue No: 07 (16-31 March 2015)

MARITIME

NEWS DIGEST (16-31 March 2015)

Volume: 03 Issue No: 07

01 Pakistan granted Extension of 01 Continental Shelf: FO Gwadar Port to earn Higher Revenue 02 via Transit Facility

03 Class NK retakes Top Position DP World Posts Profit increase APM Terminals Mumbai close to completing its Container Weighing Project Three Tankers to lift Oil at Eastern Libyan Ports

03 04 05 06

10 Sri Lanka, India to partner on Oil 10 Storage Project South Korea's Iran Crude Imports Plunge 50.3% on Year to 144,393 b/d in February 11

13 Maritime Center to Fight Gulf of Guinea Piracy Australia kicks off $39 Billion Submarine Tender Malaysia May Buy Chinese Corvettes Russia to develop 5th-Generation Submarines

13 14 16 17

21 More Ships on-time, but longer delays Rise of the third Umpire in Shipping

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23 South Asian Beaches the Target of New EU Ship Recycling Rules 23

Sub Editor: Tabassum Naz

Maritime News of Pakistan we have with the Pakistan Navy," he said.

From Editor's Desk

Thar Coalfield: Petrochemical, Coal Exports to India Viable

Recently UN's Commission on the Limits of Continental Shelf unanimously approved Pakistan's claim for extension of Continental Shelf 150 nautical miles beyond the Exclusive economic. Thus, Pakistan has gained 50,000 square kilometres of the continental shelf jutting into the sea beyond EEZ. Ministry of Science and Technology, Foreign Affairs, Pakistan Navy, National Institute of Oceanography and all those who facilitated the filing of this claim, worked behind scenes to get approved have earned well deserved gratitude of the nation.

Source: Express Tribune 24th March 2015

KARACHI: After receiving proposals from foreign mining and power generation companies, the government of Sindh is planning to develop the Thar coalfield as a potential hub of petrochemicals, with the possibility of exporting coal to international markets, including India, in the future. "The idea is to develop the Thar coalfield as a petrochemical hub for achieving strategic goals for the region," said Sindh Energy Secretary Agha Wasif Abbas. According to experts, Thar coalfield, which is now part of the Pakistan-China Economic Corridor, could be a game changer for the country and prove vital in tackling the energy crisis. With 175 billion tons of coal reserves divided into 14 blocks, commercial drilling of the resource is expected to start in 2018 by Sindh-Engro Coal Mining Company and Sino-Sindh Resources Limited from block-II and block-I respectively, followed by power generation from coal-fired plants later that year. Though the coalfield is estimated to have the capacity to provide fuel for generating around 100,000 megawatts of electricity for the next 300 years, but ground realities dictate that only a few thousand megawatts can be generated for only a handful of years before thinking what to do next.

Pakistan now has exclusive rights on minerals, non living resources of the sea bed and subsoil also including sedentary living organisms on or under the sea bed. Pakistan has increased the pool of resources that may be harvested by the future generations of Pakistanis. This is our deposit for the nation's future. Asaf Humayun

Top US Commander lauds Pakistan's Efforts Source: Express Tribune 22nd March 2015

Pakistan granted Extension of Continental Shelf: FO

MANAMA: A top American military commander has acknowledged Pakistan Navy's contribution for ensuring maritime peace in the region and said the United States could not succeed without support of the Pakistan Navy. "We cannot be successful in this region, without the contribution of the Pakistan Navy," Vice Admiral John W Miller, Commander of the US Naval Forces Central Command, US 5th Fleet and Combined Maritime Forces (CMF) told a group of Pakistani journalists during a visit to his headquarters in the Bahraini capital. Vice Admiral Miller, who has spent most of his operational career in the US Central Command area of responsibility, said ties between the navies of Pakistan and the United States were better than ever before. "We are quite fortunate to have Pakistan as part of our team, and they are not only just great team-mates, but they are also good friends," he said. Admiral Miller congratulated Pakistan for assuming the command of the Combined Maritime Task Force 151 for the sixth time from Thailand. Commodore Asif Hameed Siddiqui SI (M) from the Pakistan Navy is now commanding the Combined Maritime Forces (CMF) on counter-piracy operations. Miller said he has been at the US Navy's Central Command Headquarters for three years and most of the time, one of the two task forces has been under the command of a Pakistan Navy officer. "No nation has contributed more to command our task forces than Pakistan… so we are really proud of the relationship that

Source: Express Tribune 20th March 2015

ISLAMABAD: The United Nation's Commission on the Limits of the Continental Shelf (CLCS) has unanimously approved Pakistan's claim for the extension of outer limits of its continental shelf, a Ministry of Foreign Affairs statement said. Pakistan's continental shelf limits have been extended from 200 nautical miles to 350 nautical miles, according to a statement issued by the Pakistan Navy. "As a consequence of this landmark development, Pakistan has been granted an additional area of approximately 50,000 square kilometres," the foreign office statement read. "Pakistan will have exclusive rights for exploitation and exploration of resources at and beneath the seabed in this area in accordance with the UN Convention on the Law of the Sea." The statement added that this approval will help Pakistan in its socio-economic progress and thanked Oman "for its understanding and cooperation in the matter". Article 76 of the UN Convention on Law and Sea (UNCLOS) allows coastal states to extend their continental shelf beyond 200 NM. However, a coastal state is required to make its case to the CLCS – a body of 21 experts in geology, geophysics, hydrography and other related

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disciplines. The project to extend the limits of Pakistan's continental shelf was started in 2005, jointly by Pakistan Navy and National Institute of Oceanography (NIO) with Ministry of Science and Technology as the sponsor Ministry. Pakistan had submitted its claim to the CLCS in April 2009. A 7-member sub-commission of the CLCS undertook indepth review of Pakistan's submission and, after more than a year of scrutiny and analysis, adopted recommendations for the extension of Pakistan's continental shelf from 200 to 350 NM. During this process, a technical delegation from Pakistan undertook multiple interactions with the sub-commission. The technical delegation comprised Judge Advocate General of Pakistan Navy Commodore Zafar Mansoor Tipu TI (M), National Institute of Oceanography Director General and Project Director Dr Asif Inam, Deputy Hydrographer Pakistan Navy Commander Salman Ahmed Khan, National Institute of Oceanography GIS Analyst Mohsin Tabrez and National Institute of Oceanography Geophysicist Khalid Mehmood. During the final stage, Pakistan's delegation, headed by Dr Maliha Lodhi, the Permanent Representative of Pakistan to the UN gave the final presentation on March 10.

Qasim, heralding Pakistan's entry into the liquefied natural gas (LNG) market. The FSRU, which has been hired by LNG terminal operator Engro Elengy Terminal Limited, also brought 3,000 million cubic feet gas onboard as commissioning cargo purchased by the government. "This is sufficient for 15 days," said Sheikh Imranul Haque, the CEO at EETL. "Hopefully, regular imports will start during the period." The FSRU, twice the size of a football field, has a storage capacity of 150,000 cubic metres and has an onboard plant to turn super-chilled liquid methane into gas. It will permanently remain docked at Port Qasim. Smaller vessels will be used to import LNG to meet requirements of the energy-starved country. "The company has fulfilled its commitment by constructing all infrastructure facilities in a record time period," Haque was quoted in a statement after its inauguration. "We are hopeful that the commissioning of the country's first LNG terminal will help meet the rising demand of gas." Engro won the contract to handle LNG in a government bidding process after offering handling charges of 66 cents per unit. The government initially plans to import 200 mmcfd and then increase the quantity later in the year.

Gwadar Port to earn Higher Revenue via Transit Facility

Differences over Turtle Mortality Data Obstacle to Conservation Efforts

Source: Khaleej News 26th March 2015

Source: Express Tribune 26th March 2015

DUBAI: The region needs Gwadar Port as it will help save significant shipment time and billions of dollars in freight saving; this was echoed by top government officials and industry experts at a one-day conference in Dubai. Addressing the 'Investing in Gwadar' conference, they emphasised that it's not just a port, it is global necessity. Future global shipping chain will not be completed without Gwadar, they claimed, and added: "The potential is tremendous and a lot of opportunities as well." The conference chairman and president of Washingtonbased GWEST, Paul Michael Wihbey, said: "We are looking at a window of opportunity." Talking about the Gwadar Port potentials, Gwadar Development Authority director general, Dr Sajjad H Baloch, said that it is a gateway of China-Pakistan economic corridor and strategically located near the Strait of Hormuz. It provides the closest access for Middle East oil & gas to Western China, he said, adding that it is a transshipment hub for heavy ships. It also has transit trade potential for heavy ships, and the potential to create two million jobs. A senior researcher, Dr Azhar Ahmad, said that in the long-term Gwadar port is likely to earn enormous revenues for the province and the country by providing transit and transshipment facilities to a number of countries.

KARACHI: A two-day symposium pointed out that sharp contrast in expert views in Pakistan over the extent of sea turtle mortality was a serious problem that needed to be addressed if the government sincerely wanted to secure turtle population as well as safeguard the fishing community's interests. The programme titled Sea Turtle Conservation in Asia organised at a local hotel by the International Union for Conservation of Nature (IUCN) as part of its USAID-funded Saving the Endangered Sea Turtle project also highlighted the failure of government and private sector conservation efforts which, it was said, had failed mainly because of either absence or lack of community involvement.

Breakthrough: FSRU arrives at Port, brings LNG with it Source: Express Tribune 27th March 2015

KARACHI: After days of uncertainty, the floating storage and regasification unit (FSRU) finally docked at Port

Pakistan Navy approaches Yemen Source: Aaj News 31st March 2015

ISLAMABAD: High officials from Pakistan Navy told the Parliamentary committee that a Pakistan Navy ship has entered the port city of Aden to evacuate the Pakistani community. While briefing the National Assembly's standing committee on Defence Pakistan navy officials told that the second ship will leave for Yemen. According to the Pakistan's foreign office official, Saudia heavily bombarded the Houthi rebels targets in Yemen, 20 Pakistanis have reached the city of Aden to evict the chaotic country. Out of 3,000 Pakistanis nearly 500 Pakistani's are said to be trapped in Aden. The official further added that around 150 Pakisatanis have left for Aden from different parts of Yemen their documents are already being arranged by the Yemini officials.

Ports & Shipping distribution services. BP has leased more than half of the storage space from Vopak, while Total will use the remainder, industry sources said earlier. The crude oil storage facilities are part of a joint venture terminal between Vopak, Dialog Group and the state government of Johor. When completed, the terminal will have a total capacity of 1.3 million cubic meters to store crude and oil products.

Ships beached for Scrap as Returns reach Record Low Source: Bloomberg Business 16th March 2015

Owners may demolish 40 million deadweight tons of dry bulk carriers, more than double last year's total, according to Arctic Securities ASA in Oslo. Rates to ship commodities slumped 66 percent last year amid a glut of capacity, the worst performance since the global recession China's combined imports of iron ore and coal, the market's biggest cargoes, fell to a two-year low last month, according to customs data. The nation last week set its lowest economic growth target in almost a generation, at a time when delivery of new ships will expand the fleet for a 16th consecutive year "The decision to scrap a ship is reactive rather than proactive," Sverre Svenning, the Oslobased director of research at Fearnley Consultants AS, said.

ClassNK retakes Top Position Source: Clipping News Worldwide 18th March 2015

ClassNK has just announced its official registration figures in addition to Clarkson's data which reveals that it is once again the world's largest classification society. The Society made the announcement at its annual Japanese press conference held in Tokyo on 17 March. The latest figures show that over 366 million deadweight tons are now registered with the leading classification society, some 21% of the world's entire classed fleet, more than any other classification society in the world according to Clarkson's. Despite a global decline in new orders, the number of newbuildings joining ClassNK continues to grow, with the Society welcoming newbuildings totaling over 16 million gross tons to its register in 2014, or more than 25% of all newly built tonnage last year.

Hopper Dredger to be procured to make Mongla Harbour Navigable Source: The Financial Express 16th March 2015

The government is going to procure a hopper dredger, for the first time, for keeping the draft at the deep water of the Mongla Port harbour navigable with the financial support of China, officials said. The Ministry of Shipping (MoS) has requested the Economic Relations Division (ERD) to mobilise necessary funds for the dredger purchase, Hawlader Zakir Hossain, a director of the Mongla Port Authority told the FE. It has also requested the Planning Commission (PC) to approve the preliminary development project proposal (PDPP) for the dredger. The Mongla Port authority under the MoS has prepared a PDPP at a cost of Tk 3.20 billion for seeking the fund from China. "We have had cutter suction dredgers, but this time we need hopper dredger. We are trying to mobilise funds from external sources. Then the proposed dredger would be purchased for a big boost for the Mongla Port operations," said Mr Hossain.

Sri Lankan Navy hands over 168 Indian Fishermen to Indian Coast Guard Source: PTI 18th March 2015

ICG ship RANI ABBAKKA received the fishermen and the fishing boats from the Sri Lankan Navy and Coast Guard at the Indo-Sri Lankan International Maritime Boundary Line, a coast guard release said. The boats are likely to be handed over to state fisheries authorities, the release added. Prime Minister Narendra Modi during his recent visit to Sri Lanka had discussed the issue of Indian fishermen -- a major irritant in bilateral ties -- with the island nation's president, Maithripala Sirisena.

First Supertanker unloads Oil at New VopakDialog Terminal in Malaysia

Jakarta Dredging Works get Underway

Source: Reuters 17th March 2015

Source: Maritime Journal 19th March 2015

A supertanker has docked at a joint-venture terminal between Vopak and Dialog Group in Malaysia and will unload about 1 million barrels of Middle East crude, the companies said. The world's largest independent storage company and its partner started operations at the first commercial crude oil tank farm in southeast Asia this month. Located in Pengerang, in the southern state of Johor, just across the Johor Strait from the Singapore trading hub, the site can hold 420,000 cubic meters of crude (2.6 million barrels) and also offers blending and

Dutch dredging giants Royal Boskalis Westminster and Van Oord have won a contract valued at €350m from developer PT Muara Wisesa Samudra to design and construct a 160 hectare artificial island to become a selfcontained city off the coast of Jakarta, Indonesia. Each partner company in the joint venture is deploying one of its largest trailing suction hopper dredgers for a project that will require the winning and delivery of some 20 million m3 of dredged sand. Soil improvement and rock revetments also form part of a project which is now

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underway and due for completion in 2018. Pluit City, as the island will be known, is driven by the need to create land to accommodate population growth in an already densely populated area. Jakarta, capital city of Indonesia, already has some 10 million inhabitants, placing strain on an infrastructure so weak that Jakarta has been ranked bottom of 50 large international cities in the Economist Intelligence Unit's Safe Cities Index 2015. Land reclamation is a major strategy to accommodate future population growth and local authorities see expansion into the sea as a means of dealing with flood prevention and urban development.

expand its services," MOL said. The new brand logo will be displayed at the international trade show for the plant and heavyweight cargo sector, Breakbulk CHINA 2015, which will be held March 19-20 in Shanghai. Four MOL Group companies – Mitsui O.S.K. Lines, MOL Logistics, Utoc, and Mitsui O.S.K. Kinkai – are going to jointly exhibit the MOL Project & Heavy Cargo brand, MOL said.

Ship Owners still keen to invest in Dry Bulk Carriers, looking to finance 50-70% of Total Ship Value

"The tender would be re-issued with changed norms," a senior government official is quoted by Indian newspaper the Financial Express. The previous tender has been scrapped after it failed to attract bidders. The initial plan envisaged for the third of the newbuilds to be built locally so as to boost Indian shipbuilding capabilities. However, it seems that this very precondition turned away international bidders as they were not that eager to share their technology with local builders. In order for Gail to be able to start its import activities in 2017, the tender should be finalized and awarded by May in order for the company to be able to start transportation of LNG from USA to India. Nevertheless, the latest developments have raised concerns that the overall schedule might not be met.

GAIL to Reissue LNG Carrier Tender Source: World Maritime News 19th March 2015

Source: Hellenic Shipping News 19th March 2015

Greek ship owners are still very keen to invest in dry bulk carriers, as 39% of them opt for this type of vessel, while an additional 28% is looking to invest in the tanker market. The three main shipping markets (dry bulk, tankers, containers) are accounting for 80% of the total preferences, while LNG/LPGs account for an additional 20% of the shipowners' preferences. At the same time, banks are more inclined to finance the acquisition of tankers, a clear reflection of their view of the market's prospects, as opposed to just 12% of banks which would finance dry bulk carriers. These are some of the findings of a financing research conducted among Greek shipping companies (both listed and private), as well as among banks (both Greek and international) from XRTC Business Consultants. At the same time, ship owners are looking to finance both newbuildings, as well as second hand vessels by 59%, with only 26% of them showing a clear preference towards secondhand ships. As far as banks are concerned, they are looking to finance both ship markets by 65%, while a further 23% of them are focused solely on newbuildings. However, two-thirds of Greek banks are looking to invest in secondhand vessels.

DP World Posts Profit increase Source: World Maritime News 20th March 2015

Revenue grew 11% to USD 3.41 billion and adjusted EBITDA increased 12.3% to USD 1.59bn, delivering profit attributable to owners of USD 675 million, up 11.7% yearon-year. The increase in revenue was driven largely by a 10.5 bump in containerised cargo revenue. DP World handled 28.341 million TEUs in 2014, an 8.7% increase compared to 26.1 million TEUs the company handled in 2013." During 2014, we opened the first phase of our new semi-automated terminal at Jebel Ali, adding 2 million TEU of much needed new capacity in the UAE, which gives us the ability to handle more of the new generation of mega vessels," Group Chief Executive Mohammed Sharaf said." Earlier in the same week, DP World completed a USD 2.6 billion acquisition of Economic Zone World (EZW), the owner of Jebel Ali Free Zone. Looking forward, DP World expects to have approximately 85 million TEUs of gross global capacity by the end of 2015, an increase of approximately 15 million TEUs since 2012, and over 100 million TEUs of gross capacity by 2020, subject to market demand.

MOL Ushers in New Heavyweight Cargo Transport Brand Source: World Maritime News 19th March 2015

Japanese shipping company Mitsui O.S.K. Lines, Ltd. announced the establishment of a unified brand – "MOL Project & Heavy Cargo". The announcement comes as the group readies to capitalize on the potential of the rapidly growing plant and heavyweight cargo transport sector. 'MOL Project ＆ Heavy Cargo' will offer a full range of heavyweight cargo ocean transport services, involving conventional vessels, RORO ships, and containerships. This will also include total logistics services such as air and ocean forwarding, coastal and overland transport, and customs clearance and plant engineering services such as installation and assembly. "The new brand reflects MOL's efforts to convey the unique logistics services of each group company and demonstrate its comprehensive capabilities. The group is united as a team and working to continually

Vietnam to look into Surcharges set by Foreign Shipping Lines Source: Thanh Nien News 22nd March 2015

Vietnam will inspect foreign shipping lines for allegedly imposing unreasonable surcharges on local traders, the Government Office said. The ministries of finance, transport, and industry and trade will review all the

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surcharges to see if they violate Vietnam's Competition Law as well as international norms and punish violators accordingly, it said. Following the inspection, the ministries will also seek the government's approval for a proposed list of shipping surcharges that can be applied in Vietnam.

the Maldivian government. Higher Rates across All Vessel Segments Propels Baltic Index Source: MarineLink 23rd March 2015

APM Terminals Mumbai close to completing its Container Weighing Project

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose, propelled by higher rates across all vessel segments. The index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, was up seven points, or 1.2 percent, at 591 points. The capesize index rose 16 points, or 3.93 percent, to 423 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $126 to $4,174. The panamax index rose four points, or 0.65 percent, to 617 points. Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grains, increased by $28 to $4,941.

Source: Hellenic Shipping News 23rd March 2015

The Terminals also known as Gateway Terminals India (GTI) set a new benchmark recording 164,678 TEUs in February 2015 surpassing its previous high handling 162,946 TEUs in February 2013. As part of its ongoing efforts to provide a safe working environment to all stakeholders, APM Terminals Mumbai is now in the final stages of completing its Container weighing project that will help in identifying weights in mis-declared containers. The Terminals also known as Gateway Terminals India (GTI) set a new benchmark recording 164,678 TEUs in February 2015 surpassing its previous high handling 162,946 TEUs in February 2013. We shall continually strive to provide smooth and hassle free services to our Clients and look forward to create many more benchmarks" says Ravi Gaitonde, Chief Operating Officer at APM Terminals Mumbai.

Sri Lanka gives an Inch on Port City Project Source: World Maritime News 23rd March 2015

The government of Sri Lanka approved the construction of a breakwater for a USD 1.5 billion port city project funded by China, which had been halted earlier this month, China's Xinhua news agency reports. Sri Lanka's new government had suspended the plan to construct a commercial and residential center near the Colombo Port on March 5th amid raised concerns over the project's environmental impact and regulatory issues. However, Sri Lanka's Cabinet allowed Chinese investors to move forward with certain segments of the projects which can prevent possible damages from sea erosion and rains, including the construction of the breakwater. The approval was granted following a request made by Sri Lanka's Prime Minister Ranil Wickre masinghe.

Asia-N.Europe Container Freight Rates drops 12.4 pct Source: Reuters 23rd March 2015

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 12.4 percent to $620 per 20-foot container (TEU) in the week ended, a source with access to data from the Shanghai Containerized Freight Index told. It was the seventh consecutive week with falling freight rates on the world's busiest trade route and the current level is the lowest seen since June 2013. In the week, container freight rates dropped 15.5 percent from Asia to ports in the Mediterranean, and fell 4.7 percent to ports on the U.S. West Coast and were down 4.7 percent to ports on the U.S. East Coast. Denmark's Maersk Line, the most profitable container shipping company, will spend $9 billion on new ships over the next three years, including on a number of ultra-large vessels it will order in the second quarter, its chief executive told.

The Iranian Market Factor: What should Tanker Owners look out for? Source: Hellenic Shipping News 24th March 2015

Tanker owners have to consider once again the "Iran" factor, since a potential agreement to end sanctions on the Middle Eastern country, could once again create a new dynamic in the oil market. According to the latest report from shipbroker Gibson, "the debate on a possible deal over Iran's nuclear program has once again raised its head above the parapets. Iran, having failed to meet any previous deadlines to conform with international demands to disclose details of its nuclear program, may be on the brink of brokering a deal with the US, to ease economic sanctions against the state. The Iranian government is anxious to seal a deal which could be concluded as early as the end of March". The shipbroker added that "Iran is keen to resume crude oil exports as quickly as possible as the recent fall in the oil price has impacted heavily on their

DP World signs mou with Maldivian Government Source: DP World 23rd March 2015

In a strengthening of ties between the UAE and the Maldives, global marine terminal operator DP World has signed a Memorandum of Understanding (MoU) with Maldivian government officials in Dubai for the development of the archipelago's ports and logistics industry. The signing of the MoU is a result of several meetings over the last few months between DP World and

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already limited ability to export crude. The nation is desperate to get back its pre-sanction market share as quickly as possible. International pressure has forced several nations to cut their dependency on Iranian imports, significantly India which has not taken any NITC VLCC cargoes since November last year".

taking its toll. As the Chinese Spring Festival tends to affect the economic data, the indicators from January and February may not reveal the true condition of the sector. By removing the months of February as an outlier, the manufacturing sector has experienced a downward trend since August 2014. Despite the fact that the manufactured goods to a predominant extent are produced for exports, the worries behind the current development is slower growth in domestic consumption stemming from slowing wage growth and weaker GDP growth prospects. The slower than expected recovery in Europe has left the US as the only really strong sustainable positive demand generator.

Maersk predicts Container Traffic Demand of 3.5% with Falling Rates this Year Source: MarineLink 24th March 2015

Container shipping demand is expected to grow 3-5% this year, but freight rates are expected to continue to decline due to oversupply, says Lars Mikael Jensen, chief executive of Asia Pacific region at Maersk Line. Jensen said supply growth as ships ordered several years ago are delivered is anticipated at 5-7%. "It is still a healthy growth and obviously differing from trade to trade," Jensen told Seatrade Global referring to the growth in demand. Maersk Line has observed an overall trend that the average revenue per box is declining amid the rate fluctuations seen in some trades, due mainly to the supply-demand situation, Jensen said, putting pressure on shipping lines to reduce the cost on a per box basis of transport.

Gujarat to attract Rs 6,100 cr in Ship-Building & Repair Projects Source: The Nation 30th March 2015

The Gujarat government expects to attract private investment to the tune of Rs 6129 crore in form of shipbuilding and repair projects in the state, the Gujarat Assembly was informed. The state government has received about 14 applications from different players in the ship-building and repair industry, till March 31, 2014, the state government said. Four of these applications are under implementation, while the rest are in preliminary stages, the government added. There are already a few players in the ship-building industry in Gujarat. This include Alcock Ashdown in Bhavnagar, ABG Shipyard Limited at Magdalla, Modest Infrastructure Private Ltd in Bhavnagar, L&T Shipbuiding near Hazira and Pipavav Defence and Offshore Engineering Company Ltd at Pipavav.

Three Tankers to lift Oil at Eastern Libyan Ports Source: Reuters 24th March 2015

Three tankers plan to lift 1.7 million barrels of crude from ports in eastern Libya, oil officials said, giving hope to the battered energy sector in the North African country. The OPEC member state's oil sector has been hit by Islamist militant attacks and fighting between rival factions that has shut down major fields. But it recently managed to resume production at two western fields while keeping output steady at around 490,000 barrels per day. Output from four fields including Sarir, the country's largest, has reached 290,000 bpd, said a spokesman for state firm Arabian Gulf Oil Company (AGOCO) which dominates production in eastern Libya. A tanker bound for China is currently lifting 700,000 barrels of crude at the eastern Libyan port of Hariga fed from Sarir, the AGOCO spokesman said. A second tanker heading to Greece will be lifting 400,000 barrels from tomorrow. A third tanker was expected at the eastern port of Zueitina to load 600,000 barrels of crude, another official said.

Asia Tankers-VLCC Rates to stay Flat as Owners, Charterers Fight to give Market Direction Source: Reuters 29th March 2015

SINGAPORE: Rates for very large crude carriers (VLCCs) on key Asian routes could stay flat or slip lower next week as owners and charterers tussle to give the market direction in the face of fewer cargoes, brokers said. Ship owners were showing a united front to keep rates buoyant even though the volume of cargoes fixed so far for April from the Middle East to Asia is down compared with March, Singaporebased VLCC brokers said. "We expect the market to remain stable and owners will put up a fight and resist further drops," said a Singapore-based VLCC broker.

China's manufacturing Sector is struggling to keep up Pace: How will this affect Dry Bulk Shipping?

Might: Low Crude Prices to affect Shipbuilding, Repair Business

Source: Hellenic Shipping News 25th March 2015

Source: The Guardian 26th March 2015

Data released on the condition of the Chinese manufacturing sector points towards weaker business conditions. HSBC/Markit China Manufacturing Purchasing Managers' Index (PMI) is coming down from a sevenmonth high in February (50.7) to an eleven-month low in March (49.2). Overall slower economic growth at GDPlevel and growing overcapacity in manufacturing sector is

LANGKAWI: Local shipyard operators, which derive the bulk of their income from energy-related projects, are facing a tough year ahead as oil companies cut down on offshore exploration and production activities amid a slump in global crude oil prices. The Malaysian IndustryGovernment Group for High Technology (Might), a non-

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profit grouping, estimates oil and gas projects contribute between 70% and 80% of the shipbuilding and ship repair (SBSR) annual revenue. "The SBSR industry performance for 2015 and 2016 is expected to be severely affected by the sharp drop in crude prices," its president and CEO Datuk Dr Mohd Yusoff Sulaiman told. "If oil prices continue on the low trend for the next couple of years, the slow global economy will consequently affect the number of newbuilds and force local shipyards to offer at the lowest margin to ensure continuous projects in hand," he said. Oil Product Tanker Demand to rise on New Mideast refining Capacity

cruise liner travelers was at $214 which is in line with the average spend of a UK traveller in Sri Lanka that attracted MSC to the Colombo Port said chairman Athukorala. Some of the key trends among the cruise liner passengers are digital connectivity when the ship is at high seas whilst catering to the individual dietary requirements is more an industry feature than an individual brand highlight said Athukorala. If we are to be in line with the 40 billion dollar business we must work closely on a solid infrastructure that supports cruise liner visitors like shops close to the docking bay and attractive inbound tours to scenic locations be it wild life, beaches or cultural sites voices Athukorala.

Source: Platts 26th March 2015

Oil Prices Cast a Shadow over Multipurpose Shipping Market

Oil product tankers will draw higher spot freight rates and vessel prices next year on the back of rising demand from expanding Middle East refining capacity, oil price volatility and slowing fleet growth, DNB Markets, a unit of Norway's DNB Bank ASA, said on March 24. "We see future demand growth being mainly driven by accelerated expansion of refining capacity skewed towards the Middle East and China, although increased price volatility in petroleum products could potentially add to this," the report said. The research unit said MR vessels, which are considered the workhorse of the tanker market, could see spot rates increase 13% to $18,000/day in 2016, from $16,000/day this year. The freight level was slated to firm further to $19,000/day in 2017, DNB said. MR tankers can hold cargoes of 30,000-40,000 mt. The LR tanker segment is expected to remain positive with LR2 spot rates estimated rising to $25,000/day in 2016 and 2017, from $23,000/day this year. An LR2 tanker can typically load cargoes of 75,000-100,000 mt. DNB predicted the clean product tankers would also likely increase in value 13% from current levels. The report projected fleet growth of 6% this year, slowing to 5% next year and 4% in 2017.

Source: en.cnss.com 27th March 2015

Sri Lanka Tourism enters the $40 bn Cruiseline Business

Beijing aid keeps China shipping lines in Profit despite Waterlogged Market

Source: Bloomberg Business 25th March 2015

Source: Reuters 27th March 2015

Sri Lanka Tourism is partnering top blue-chip companies to enter the lucrative 40 billion dollar cruise line business that is estimated to carry 22.3 million passengers, with the market growing at 3.2% in volume. Carnival Corporation is the market leader with a share of 48.1% followed by Royal Caribbean Ltd at 23.1%, Norwegian Cruise Holdings at 10.4%, while MSC is at 5.2%. I was delighted to see MSC docking at the Colombo port with almost two-thousand passengers, commented Chairman Sri Lanka Tourism Promotions Bureau Rohantha Athukorala. Overall Sri Lanka tourism is at a high of 16.7% growth in February and to date registering a 11.6% growth with key markets like China bolstering a 86% growth and India at 14.2 which are the top two markets for Sri Lanka for the year 2015 he said. Normally the average spend among

As China's economic slowdown squeezes the global shipping industry, three of the country's biggest domestic cargo freighters likely skirted the losses that plagued international peers last year. Boosted by hundreds of millions of dollars in cash grants from Beijing for scrapping old vessels, China Cosco , China Shipping Development and China Shipping Container Lines will report 2014 earnings started showing some of their best profits in years. But industry insiders and analysts say Beijing's support for national firms as its economy slows is the only factor that kept the firms out of the red, creating a dependence on support that will be sustained with no industry upturn in sight. For the International Chamber of Shipping, representing the global merchant fleet, the aid artificially boosts shipbuilding just as the sector faces a surplus of ships.

Global dry cargo demand growth, forecast at 5% per annum from 2016 to 2019, to be offset by falling project cargo volumes over the next twelve to eighteen months. ''The fall in oil prices, coupled with growing demand and a diminishing fleet should be good news for the multipurpose shipping sector. However, it appears that the flipside of lower bunker prices is a global decline in oil and gas investment projects. There have already been reports of fewer project cargoes available for the multipurpose fleet to carry as project investment has started to slow.'' With the fall in prices, there is less incentive to invest in oil and gas projects. This will, in turn, mean a reduction of available cargo and slower demand growth for the fleet. ''Our analysis of the fleet shows that the simple multipurpose fleet is in decline, with little investment beyond replacement tonnage. However the more advanced vessels, the project carriers, are seeing fleet growth of around 3.5% per annum to end 2018. It is the cargo for these vessels that is directly affected by this slowdown in the sector'', said Oatway.

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Maritime Trade & Economy option needs to be ruled out before storage at sea becomes viable. However, on some occasions even if tankage remains available on shore, competitive forces mean those who control the storage may be unwilling to lease it to those who need it.

Sri Lanka, India to partner on Oil Storage Project Source: Reuters 16th March 2015

Sri Lanka's state-run Ceylon Petroleum Corporation (CPC) and the local subsidiary of Indian Oil Corp have agreed to develop a strategic oil storage facility in Trincomalee. Modi said the project could help the island nation lying to India's southeast become a regional petroleum hub. Sri Lanka is strategically located on a shipping route between Gulf oil exporters and Asian consumers, and the eastern port of Trincomalee served as a crucial Allied supply hub during World War Two. "We are also focusing on new opportunities. Today Lanka IOC and Ceylon Petroleum Corporation have agreed to joint development of the upper tank farm of the China Bay installation in the Trincomalee on mutually agreed terms," Modi told. "A joint task force will be constituted soon to work out the modalities."

Saudi Crude Exports in January reached Highest in 11 Months Source: Bloomberg Business 19th March 2015

Saudi Arabia's crude oil exports rose 7.8 percent in January to the highest level in 11 months, according to the Joint Organisations Data Initiative. The world's biggest oil exporter shipped 7.47 million barrels a day in the month compared with 6.93 million in December, data posted on the initiative's website showed. Shipments increased to the highest since February 2014, the data showed. The kingdom produced 9.68 million barrels a day of crude in January, up 0.5 percent or 50,000 barrels a day, from the previous month, according to JODI. Saudi Arabia is the largest producer in the Organization of Petroleum Exporting Countries. The growth in January exports coincided with a 7.6 percent slide in the Brent crude price that month, signaling that cheaper oil may be stimulating demand amid a global surplus. Consumption is rising gradually, and economic growth is more robust, Saudi Oil Minister Ali Al-Naimi said March 4 in Berlin. The International Energy Agency, an adviser to industrialized nations, increased its forecasts for global oil consumption in 2015 by 130,000 barrels a day because of "modestly escalating global economic growth."

Middle East OPEC Oil Rig Count Jumps 14% Source: Clipping News Worldwide 17th March 2015

As if to rub salt in the wounds of the US shale industry, Middle East OPEC oilrig count has jumped by 19 rigs to 155 units in February 2015 setting a new rig count record for the region. Since 2005, the supergiant oil fields of the region developed symptoms of mortality and increased drilling has been required to combat natural production declines in order to maintain production at static levels. Floating Oil Storage onboard Tankers Difficult to Materialize, at Least for now

MOL Group Establishes “MOL Project & Heavy Cargo” as Unified Brand for Plant/Heavyweight Cargo Transport

Source: Hellenic Shipping News 17th March 2015

Source: Mitsui O.S.K. Lines, Ltd. 19th March 2015

As tanker owners with aged VLCC tankers were looking for an opportunity in the scrap market, in order to send their vessels for demolition, the opportunity of floating storage plays rose, giving those older ships another lifeline, at least for a short period of time. The global surplus of crude oil and subsequent contango had created new chartering opportunities. However, despite high hopes, such a "market" never actually materialized. According to the explanation provided in shipbroker Gibson's latest weekly report, "the simple answer is that the contango structure never got sufficiently steep to justify the associated storage costs. Despite the 6 month spread in ICE Brent Futures widening to $7.40 in mid-January, 1 year TC rates of around $65,000/day (in the West) at the time meant storage costs of approximately $8.50 for a six month period. Whilst storage costs have now come down, the contango has narrowed and a number of other factors continue to serve as a barrier to floating storage". The London-based shipbroker noted that "firstly, shore based storage is cheaper than floating storage meaning this

Mitsui O.S.K. Lines, Ltd. announced the establishment of a unified brand – "MOL Project & Heavy Cargo" – highlighting the MOL Group's capabilities in the rapidly growing plant and heavyweight cargo transport sector. The new brand reflects MOL's efforts to convey the unique logistics services of each group company and demonstrate its comprehensive capabilities. The group is united as a team and working to continually expand its services. Global Oil Glut set to grow as China slows Crude Imports Source: Reuters 19th March 2015

A global oversupply of oil is set to rise as China pauses in the build-up of its strategic reserves and Asian refineries slow crude imports ahead of the spring maintenance season, putting more downward pressure on prices. China's purchases to fill its strategic petroleum reserves (SPR) had

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been one of the main drivers of Asian demand since August of last year, with the No.2 oil consumer taking up cheap crude to fill its tanks despite slowing economic growth. Yet China could pause its reserve purchases soon as tank sites reach their limits and new space only becomes available later this year. Little is known about China's SPR levels. The government seldom issues data, but its plan is to reach around 600 million barrels, about 90 days' worth of imports. Most estimates put the SPR stocks currently to be 30-40 days' worth.

understand that all countries need higher incomes... We want higher incomes, but we want higher incomes for us and future generations." Brent crude is currently around $55 per barrel. He also repeated that Saudi Arabia had no political motives in its oil policy. "We are not against anybody or against the (production of U.S. shale oil)... On the contrary we welcome it, as it balances the market in the long run." Some producers such as Iran, a diplomatic rival of Saudi Arabia, have sharply criticized Riyadh for its decision to let oil prices slide rather than trying to support them with an OPEC production cut. But Madi said that the price drop was because of fundamental supply and demand factors, not any non-economic policies.

China's Imported Iron Ore Prices Continue to Drop Source: China Daily 25th March 2015

South Korea's Iran Crude Imports Plunge 50.3% on Year to 144,393 b/d in February

Prices of imported iron ore at 33 major Chinese ports continue to fall due to thinspot trading volumes and a strong wait-and-see attitude. For the week ending March 23, the price index for 62 percent pure iron ore imports dropped three points from the previous week. The index for 58 percent imports of purity grade fell two pints, according to a Xinhua-China Iron Ore Index report. Inventories of imported iron ore stood at 96.6 million tons, down 1.84 million tons, from the previous period (March 10-16). The prices of mainstream imported ore fell below $55/ton last week as a result of weak demand. The imported ore prices have fallen 23 percent since the beginning of the year, after falling 47percent in 2014. The report forecast the rising steel stocks will weigh on steel prices and lead to further contraction in demand for iron ore. The index tracks changes in the domestic iron ore market on the basis of surveys of major sea ports, iron ore traders, steel makers and customs statistics.

Source: Platts 24th March 2015

South Korea's imports of Iranian crude oil in February plunged 50.3% year on year to 4.043 million barrels, or an average 144,393 b/d, from 8.140 million barrels a year earlier, data released by state-run Korea National Oil Corp showed. But this was more than double from the 1.995 million barrels of crude imported from Iran in January. South Korea paid $176.8 million for Iranian crude imports in February, down from $859.5 million a year earlier and $125.7 million in January on lower crude oil prices. The country paid an average $43.74/barrel for Iranian crude in February, down from $106/b a year earlier and $63.04/b in January. KNOC data also showed the country's imports of Iraqi crude jumped 63.6% year on year to 8.788 million barrels, or an average 313,857 b/d in February, from 5.371 million barrels a year earlier. But this was down 17.2% from 10.613 million barrels imported in January.

Asia Oil Buyers set to enhance Iran Imports Source: Iran Daily 25th March 2015

India to boost LNG Imports to raise Power Generation

As intensive nuclear talks are to resume between Tehran and six world powers, at least six Asian refiners are forecasting more supply from Iran, a top Middle East producer, if a permanent deal is reached to result in sanctions relief. Mangalore Refinery and Petrochemicals Ltd. in India and Cosmo Oil Co. in Japan are among the refiners hoping for Iran sanctions relief. Iran is currently exporting around 1 mb/d of oil, due to US-imposed restrictions, while it has potential to supply up to 4 mb/d. If sanctions are removed, there's a big chance that demand for Iranian oil will recover in Asian nations like South Korea, China and Japan.

Source: Reuters 27th March 2015

The government said it will boost imports of liquefied natural gas (LNG) to improve electricity generation and revive plants worth billions of dollars to fuel economic expansion. India's plan to import LNG will boost power supply by 79 billion units valued at about 420 billion rupees and could spur spot prices of the super cooled gas trading at about $7.60 per million British thermal units in Asia. Nearly a quarter of a century after India embraced economic liberalisation, many businesses still rely on costly back-up generators for round-the-clock power and a third of its 1.2 billion people are still not connected to the grid. Prime Minister Narendra Modi, elected in May, has made a commitment to bring order to the chaotic power sector and end the chronic blackouts that impede India's economic rise. The government has charged GAIL (India) Ltd to import LNG for power plants outside Gujarat, where a local state company will import the fuel to revive power plants and improve generation, Power Minister Piyush Goyal said

Saudi Arabia's OPEC governor: It will be hard for Oil to reach $100-120 a Barrel again Source: Reuters 23rd March 2015

RIYADH: Saudi Arabia's OPEC governor Mohammed alMadi said that he believed it would be difficult for oil to reach a price range of $100-120 per barrel again. "$100120 — I think it's difficult to reach 120 another time... We

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after a meeting of the union cabinet.

can become a growth miracle of the 2020s," said Subbarao, who was succeeded at the Reserve Bank of India by Raghuram Rajan. "If you had the Japanese miracle, the East Asian miracle, the Chinese miracle, an Indian miracle is a tantalizing prospect and quite possible." All the nations Subbarao mentioned rose to power and prominence due to export-driven manufacturing growth. India will have the world's largest labor force by 2030, according to projections from the United Nations, positioning it to boost factory output. "We have to recognize that India growing faster than China doesn't give us bragging rights," Subbarao said. "Because in India, as some people have said, there's so much low hanging fruit that the tree is almost fallen to the ground."

India's Coal Imports to raise to 200Mt this Fiscal Source: en.cnss.com 26th March 2015

As the government is working on Prime Minister Narendra Modi's promise to provide power for all, India's coal imports may touch a record 200 million tonnes in the current fiscal. This signals a 19 per cent rise in imports. India is the world's third-largest coal importer and the demand for Coal is estimated to be 787.03 million tonnes in 2014-15. The country purchases most of its coal from Indonesia, Australia and South Africa. State-run and private coal companies in India are on a capacity addition spree right now and this may lead to a reduction in imports in the next fiscal. Imports are likely to back at the 160 million tonnes mark from next fiscal that begins from April 1. The state-run Coal India Limited (CIL) is likely to enhance production by 50 million tonnes in 2015/16 to 550 million tonnes, Swarup told Reuters. The government targets to produce 1 billion tonnes Coal by 2019/20.

MISCELLANEOUS The Dry Bulk Fleet at Breaking Point Source: Hellenic Shipping News 27th March 2015

The severe oversupply in the bulkcarrier fleet has contributed to the current trough in the dry bulk market, putting considerable financial pressure on owners, many of whom are subject to earnings close to operating costs. This has triggered a surge in bulkcarrier demolition since the beginning of 2015. If the current rate of scrapping were to continue, there would be a clear impact on dry bulk fleet growth. So demolition is surging, and could approach record levels, altering the make-up of the bulker fleet, in terms of age, the distribution across sectors and owner nationality. And whether records are broken or not this year, the increase in demolition will have a clear impact on the rate of fleet expansion.

Santos, Japanese-led Team make New Oil find Off Malaysia Source: Reuters 27th March 2015

MELBOURNE: Santos Ltd and its Japanese and Malaysian partners hit oil in an exploration well in deep water off Sabah in east Malaysia, and are planning to drill further to evaluate the find, the Australian company said. "A significant oil discovery has recently been made at the Bestari-1 exploration well," Santos said. "While there is still a lot of work to be done in determining recoverable volumes, this is a large structural closure potentially capable of supporting significant column heights," Santos vice president John Anderson said in emailed comments. The well was one of six Santos has scheduled in a $250 million exploration campaign this year, after cutting planned capital spending for 2015 by a fourth in December to help cope with a slump in oil prices.

Panama Canal sets Sights on New $17 Billion Expansion Project Source: Reuters 27th March 2015

As it enters the final stretch of a massive expansion, the Panama Canal Authority is setting its sights on an even more ambitious project worth up to $17 billion that would allow it to handle the world's biggest ships. Workers are now installing giant, 22-story lock gates to accommodate larger "Post-Panamax" ships through the Canal, one of the world's busiest maritime routes. The project involves building a third set of locks on the Canal. It is being headed by Italy's Salini Impregilo and Spain's Sacyr, and should open on April 1, 2016. But Jorge Quijano, who leads the Panama Canal Authority, is already looking beyond this project to a fourth set of locks which would serve a new generation of even bigger ships that can carry 20,000 containers. "Looking at our geology and the experience we gained with this current expansion, we estimate it's a project that could cost between $16 billion and $17 billion," he told Reuters, adding it would allow Panama to compete head-to-head with Egypt's Suez Canal. The Panama Canal Authority has long talked about building a fourth set of locks but Quijano said it is now for the first time seriously studying the project.

India can be Miracle of the 2020s, Says Ex-Central Bank Chief Source: Bloomberg Business 27th March 2015

Say hello to the world's next miracle economy: India. The nation has what it takes to push past China as the region's economic powerhouse, according to its former central bank governor. India's young workforce gives it an advantage over aging China and its democratic political system will save it the upheaval that probably awaits its larger rival, Duvvuri Subbarao said. When Subbarao's term ended in September 2013, India's currency was at a record low, growth was slowing and investors were fleeing. The election of the nation's most stable government in 30 years, improving public finances and easing inflation as oil prices fall has set the stage for an economic lift-off, he said. "India

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Maritime Security which augurs well for a future in which India and the United States increasingly work together to address shared security, terrorism, and piracy challenges whether they exist in the Indian Ocean region or farther afield."

Indonesian Navy sinks Three Philippines Fishing Boats in West Papua Source: Antara News 16th March 2015

Maritime Center to Fight Gulf of Guinea Piracy The Indonesian navy's Eastern Fleet Command has sunk three Philippines fishing boats at the naval base in Sorong, West Papua for alleged poaching in Melanesian waters. "The three boats entered the Indonesian marine territory by flying the Indonesian flag and using Indonesian names on them," the commander of the Eastern Fleet Command, Rear Admiral Darwanto, said. In an official statement received by Antara in Surabaya, West Java, the commander stated that the Indonesian flag and names meant they had some intention to commit "illegal acts".

Source: Defense News 30th March 2015

The MMCC is one of many planned as a part of the ECOWAS Integrated Maritime Strategy to coordinate joint patrols, naval drills, training programs and intelligence sharing among the naval forces of the Gulf of Guinea Pilot Zone E. Located in the Atlantic Ocean off the coasts of Nigeria, Niger, Benin and Togo, Pilot Zone E is considered the hotbed of piracy in the Gulf of Guinea. The new MMCC was set up in Cotonou, Benin, and will be used to coordinate joint maritime security drills and operations activities with two other in Gulf of Guinea sectors. One is Zone F, which includes Burkina Faso, Côte d'Ivoire, Ghana, Guinea, Liberia and Sierra Leone. The other is Zone G, which groups together Cape Verde, the Gambia, Guinea Bissau, Mali and Senegal, which will also be linked to security operations covering the entire Gulf of Guinea region.

Rethinking Indonesia's Global Maritime Axis Source: Jakarta Post 22nd March 2015

In October 2014, while taking the oath as Indonesia's seventh president, Joko "Jokowi" Widodo called upon his nation "to work as hard as possible to turn Indonesia into a maritime nation". A month later, during the East Asia Summit in Naypyitaw, Myanmar, he highlighted his vision of Indonesia being a "global maritime axis", postulating that concurrent to the "rise" of Asia, the sea would assume immense relevance for his country. However, as we enter the fifth month of Jokowi's presidency, we have yet to see a blueprint. The new maritime doctrine comprises five key elements to realize Indonesia's long- dormant potential to emerge as a maritime power, such as embedding maritime cultures, developing marine infrastructure through an inter-island maritime highway, boosting Indonesia's maritime-resource development, placing maritime and border issues at the heart of diplomacy, as well as strengthening maritime security.

Goa Shipyard to tie up with Foreign Yards to Build MCMVs Source: The Economic Times of India 22nd March 2015

USS PAUL HAMILTON strengthens Relationship with Indian Navy

PANAJI: After bagging the deal to build Mines CounterMeasures Vessels (MCMVs) for the Indian Navy, Goa Shipyard Ltd (GSL) has decided to tie up with the foreign yards for the technology transfer required to create these high-tech ships. The Union Defence Ministry had recently cleared the Rs 32,000 crore-worth project to manufacture 12 MCMVs, which will be built by the GSL. "We will be able to roll out the vessels six years from now. The actual construction on this project will begin after three years," GSL Chairman and Managing Director Rear Admiral Shekhar Mittal said.

Source: DVIDS 23rd March 2015

Cooperation Best way forward for Beijing, Delhi: Chinese Daily

GOA: Arleigh Burke-class guided-missile destroyer USS PAUL HAMILTON (DDG 60) visited Goa, India, March 1721. While in port, Paul Hamilton hosted members of the Indian press as well as Indian navy officers and Sailors on board for tours of the ship and a reception. "Defense cooperation and maritime security are major themes in the U.S.-India relationship," said Thomas Vajda, U.S. consul general in Mumbai, India. "I was delighted to participate in several events with the crew of USS PAUL HAMILTON and their counterparts in the Indian Navy. I have enjoyed seeing the sense of camaraderie and friendship developing between our officers and Sailors,

Source: Business Standard 27th March 2015

Linking India's "Spice Route" and "Mausam" projects with China's "One Belt and One Road" initiative could provide a way to mitigate New Delhi's suspicions over cooperating with Beijing to create tangible benefits for both sides and achieve maritime objectives, a leading English daily of China said. Chinese Ambassador to India Le Yucheng recently remarked that "the One Belt and One Road initiatives can also be linked with India's Spice Route and Mausam projects", Global Times reported, adding that

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it might provide a blueprint for cooperation between New Delhi and Beijing and help India to set suspicions aside. The op-ed piece headlined "Cooperation best route for Beijing and Delhi over maritime objectives" was based on an interview with Wang Dehua, head of the Institute for the Southern and Central Asian Studies, the Shanghai Municipal Center for International Studies. It said there was no easy way of persuading a rising power in China's neighbourhood to recognise that its mega project is not seeking for influence or striving for hegemony. Pointing out that India's Mausam and Spice Route initiatives were launched to re-establish India's ancient maritime routes with its ancient trading partners, the daily added that it was clear that India will focus on its maritime strategy in the future, "which will go hand in hand with its large scale of infrastructure construction".

back home from Malaysia. 102 workers who were detained in Malaysia for working illegally will arrive in Myanmar on March 29 aboard the Mahar Thihathura. The ship will take the workers home after participating in the Langkawi International Maritime and Aerospace Exhibition 2015 from March 17 to 21 in Malaysia. The workers were jailed in detention centers in Malaysia after they were arrested by Malaysian police and could not afford their return fares, although they have already attained their C of I certificates to go back. Somalia's Plea Bargain rejected Source: The Asian Age 28th March 2015

In a disappointment to the Somalian government, which requested a 'plea bargain' to be offered to 120 of its nationals — currently lodged in Mumbai prisons for piracy — during a high-level meeting in New Delhi, India rejected the same, reasoning that charges levied against them invited a punishment of more than seven years, which does not make them eligible for the provision. A plea bargain involves an accused entering a guilty plea on certain counts with the prosecution dropping those charges and thus demanding a milder punishment. Originally an American judicial concept, it was introduced in India only in 2005 through the Criminal Law (Amendment) Act with sections 265 A to 265 L encompassing the provision.

Australia kicks off $39 Billion Submarine Tender Source: Reuters 28th March 2015

Australia has invited Germany, France and Japan to pitch for a contract to build its new submarine fleet, kicking off a contentious $50 billion ($38.8 billion) project which has become a political football at home. Signs of progress on the long-delayed project bode ill for Sweden despite a proposal from Australia's opposition party to overturn the Nordic country's earlier exclusion from the lucrative tender. Speaking at a conference of Australian naval officials and politicians in Adelaide on Wednesday, Defense Minister Kevin Andrews said Germany, France and Japan had emerged as potential "international partners" for the project to replace Australia's six aging Collins-class vessels. Andrews added that a "competitive evaluation" would take at least 10 months, after which the Defense Department would advise the government on preferred bidders. S.Korea, U.S. Start Exercises

Joint Maritime

PRINCE OF WALES aircraft carrier „makes little sense' without aircraft to fly from it Source: The Guardian 26th March 2015

A second large aircraft carrier planned for the navy – the PRINCE OF WALES – would make "little sense" unless enough money could be found to provide it with planes to fly from it and ships to protect it, a cross-party group of MPs warned. The verdict, at a time of intense financial pressure on Britain's armed forces, is contained in a Commons defence committee. It is particularly significant as the Commons defence committee usually praises unequivocally even the most ambitious military project. Bringing the PRINCE OF WALES into service "will involve very considerable additional costs, additional manpower, extra aircraft and the considerable amount of support and protection needed to make it viable", say the MPs.

Training

Source: english.cri.cn 29th March 2015

South Korea and the United States kicked off a largescale joint maritime training exercise as part of the joint annual war game code-named "Foal Eagle," the South Koran Navy said. The six-day maneuver was launched in South Korea's southern port city of Pohang, mobilizing some 4,100 naval forces and 3,500 marines of the two countries. The drill came as part of the ongoing "Foal Eagle" field training exercise, which began on March 2 and will run until April 24. The "Foal Eagle" involves some 200,000 South Korean troops and 3,700 U.S. soldiers.

Two Iranian Naval Ships arrive at the Port of Colombo Source: Sri Lanka Navy 26th March 2015

Two Iranian naval ships IRIS NAGHDI and IRIS BANDAR ABBAS arrived at the Port of Colombo on 09th February 2015 as part of the overseas tour for the Naval University cadets of the Islamic Republic of Iran. They were welcomed by the Sri Lanka Navy in keeping with naval traditions on their arrival. The visiting Iranian naval ships will stay in Sri Lanka until 12th February 2015 and

Navy Ship to bring Workers Home from Malaysia Source: ELEVEN 29th March 2015

A ship belonging to the Myanmar Navy is bringing more than a hundred undocumented Myanmar migrant workers

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the crews are scheduled to participate in a series of programmes organized by the Sri Lanka Navy to enhance the friendly relations between the two navies during their stay in Sri Lanka.

Navy, early next month. Both carriers operated by the Navy — VIRAAT and VIKRAMADITYA — are part of its potent Western Fleet. "The Navy mastered the art of carrier operations over five decades ago and has sustained it all through.VIKRAMADITYA has now received the baton from VIRAAT and construction of the new VIKRANT, the first indigenous aircraft carrier, is progressing very well and to the Navy's satisfaction. We have a mix of platforms ensuring full fire power and capability to operate across the entire spectrum of naval operations," Vice Admiral Cheema, who had previously skippered VIRAAT, told.

Japanese Navy gets Biggest Flat-Top since WWIIEra Aircraft Carriers Source: Reuters 26th March 2015

Japan's Maritime Self Defense Force took delivery of the biggest Japanese warship since World War Two, the IZUMO, a helicopter carrier as big as the Imperial Navy aircraft carriers that battled the United States in the Pacific. The IZUMO with a crew of 470 sailors is a highly visible example of how Japan is expanding the capability of its military to operate overseas and enters service as Prime Minister Shinzo Abe seeks lawmaker approval to loosen the restraints of Japan's pacifist post-war constitution. The 248 meter (813 feet) long IZUMO resembles U.S. Marine Corp amphibious assault carriers in size and design but it is designated as a helicopter destroyer, a label that allows Japan to keep within the bounds of a constitutional ban on owning the means to wage war. Aircraft carriers, because of their ability to project force, are considered offensive weapons.

Ivory Coast launches Military Training to Fight Maritime Piracy Source: SPY Ghana 31st March 2015

The source said the training is meant to reinforce surveillance and prepare the forces to effectively fight against acts of maritime piracy. "This exercise which is being done with the support of partners who include the U.S., will help Cote d'Ivoire to properly secure its maritime space," Cote d'Ivoire's Navy Commander Contre -Amiral Djakaridja Konate said. He said the training in which several army patrol boats are taking part, will enable the country to assess its operational capacity. The training exercise is equally expected to reinforce cooperation with other Gulf of Guinea countries such as Nigeria, Ghana, Equatorial Guinea, Gabon, Democratic Republic of Congo, Angola, Republic of Congo and Sao Tome et Principe. In recent months, the Gulf of Guinea zone has witnessed numerous acts of piracy. Due to the increased attacks by the armed pirates, the concerned countries have decided to reinforce security measures.

India Plans Sea, Air Evacuation of Indians in Yemen Source: The Diplomat 28th March 2015

NEW DELHI: India is firming up plans for possible sea and air evacuation of some 3,500 Indians stuck in war-torn Yemen. Sources say India wants to evacuate its nationals from the Yemeni port of Al Hodeida. But the plan depends on the security situation on the ground. Al-Hodaida, on the Red Sea is Yemen's fourth largest city, but like most of the country, is under rebel Shia Houthi control. The plan is to get Indians from the capital Sana'a to Al-Hodeida and then take them by sea or air across the Red Sea to Djibouti in the Horn of Africa, after which they will be flown to India. The first step will be to move an Indian Naval ship to AlHodeida. There are always naval ships in the Gulf of Aden for anti-piracy operations, and one of them could be the first to respond to a government order. There is also at least one Indian naval ship further south in the Indian Ocean near Seychelles.

NATO holds Naval Exercises in the Black Sea Source: Euro News 18th March 2015

NATO has held a series of naval exercises in the Black Sea off the Romanian coast, ahead of the one year anniversary of Russia' annexation of Crimea. Warships of from six NATO countries – the US, Canada, Turkey, Germany, Italy and Romania – took part just 300 kilometers of Crimea. The alliance stresses no additional plans were after Russia increased its Russian military presence in this region. India Says China using Myanmar and Pakistan to Expand Foothold Source: Bloomberg Business 20th March 2015

„VIRAAT decommissioning will not hit Operations' Source: The Hindu 30th March 2015

China is using its influence in Myanmar and Pakistan to strengthen access to the Indian Ocean, India's Defense Ministry said in its annual report, vowing to take steps to ensure security in a region it has long dominated. "India remains conscious and watchful of the implication of China's increasing military profile in India's immediate and extended neighborhood," the report stated. China is widening its footprint by "proactive diplomacy through

The proposed decommissioning of the aircraft carrier INS VIRAAT next year will not affect the Navy's operational plans, readiness or capability, says Vice Admiral S.P.S. Cheema, outgoing chief of the Southern Naval Command. Vice Admiral Cheema will take over the Mumbai-based Western Command, the sword arm of the

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political, military and economic cooperation and engagement," it read. China has helped build nuclear power plants in Pakistan, a Myanmar oil pipeline, and a port in Sri Lanka in what it calls efforts to boost trade and economic ties. India remains wary of its military intentions, protesting two visits last year by Chinese submarines to Colombo, less than 200 miles from India's coastline in waters carrying most of the world's oil trade. "India is taking necessary measures to develop the requisite capabilities to counter any adverse impact on its own security," according to the report.

a submarine appeared in the exclusive economic zone. French Warships to arrive for Naval Exercise Source: The Asian Age 18th March 2015

A flotilla of warships from the French Navy will arrive on the western coast for exercise Varuna-2015 with the Indian Navy. The exercise that will begin in late April would see a host of maneuvers between the two navies, primarily aimed towards establishing a common mode of communication apart from practicing other naval tactics. "The primary aim of the exercise is to establish and test common communication channels which will be used during a real joint operation and to understand each other's procedures," said an officer.

NATO disputes Conservative claim that Russians confronted Canadian Warship Source: Ottawa Citizen 17th March 2015

The Conservative government has ratcheted up its war of words over Ukraine, with the parliamentary defence secretary claiming Russian warships confronted a Canadian frigate in the Black Sea. But NATO officials say no such thing happened. James Bezan, parliamentary secretary to Minister of National Defence Jason Kenney, told, "Since arriving in the Black Sea, Royal Canadian Navy sailors have been confronted by Russian warships and buzzed by Russian fighter jets." Kenney also repeated the claim the next day, stating that a Russian jet buzzed the Canadian frigate HMCS FREDERICTON at low altitude. But NATO officials say the frigate, part of a NATO naval task group, was not buzzed and there was no confrontation.

Malaysia May Buy Chinese Corvettes Source: Defense World 19th March 2015

Malaysia is planning to buy two variants of C28A Chinese warships for its navy. "The deal for the two warships was supposed to be signed during the Prime Minister's visit to China last year during 40th anniversary of diplomatic relations between the two countries – but was cancelled at the last moment due to various issues, one of them was funding concerns. Despite the cancellation, Malaysia remained keen on the plan and it might revive after funding is made available." The exact kind of warships that Malaysia is supposed to be buying is still not known. Malaysia may buy variants of C28A corvettes by China Shipbuilding Trading Co (CSTC). The C28A is about 120 meters with a beam of 14.4 meters with a standard displacement of about 2,880 tons and a full-load displacement of more than 3,000 tons. The C28A bound to Algeria are designated as corvettes whereas Pakistan's F22P vessel with similar displacement is designated as frigates.

Royal Navy FSL Visits Southern Naval Command Source: Indian Express 18th March 2015

KOCHI: Admiral Sir George Zambellas, First Sea Lord (FSL) of the Royal Navy (RN) and Chief of Naval Staff has visited the Southern Naval Command. The Royal Navy is the naval force of the United Kingdom. Admiral Zambellas was accompanied by his spouse Lady Amanda Zambellas. Southern Naval Command Flag Officer Commanding-inChief Vice Admiral S P S Cheema held a meeting with the FSL, at which professional issues of mutual interest were discussed.

India Remains Vulnerable to another 26/11 Style attack, says Security Expert Source: Express News Service- Jaipur 20th March 2015

Russian Submarine Spotted near Latvia; Baltic State to increase Border Security

Raising an alert on the security preparedness on the coastline, Rahul Roy Chaudhury, Senior Fellow for South Asia at the International Institute for Strategic Studies, London said that India continues to remain highly vulnerable to another maritime terror attack like that of November 2008 in Mumbai. "The dominance of an experienced maritime community could provide the potential for the next terror attack against India, amidst state support and a rise of religious extremism. While the threat from Pakistan continues, Bangladesh is seeing the rise of Islamic extremism alongside the anti-India Bangladesh National Party (BNP)-Jamaat-e-Islami (JeI) opposition alliance, despite Prime Minister Sheikh Hasina's best efforts. The Maldives has witnessed internal political disputes," enumerated Roy Chaudhury at a session

Source: International Business Times 19th March 2015

The Latvian military has reported spotting a Russian submarine off the coast of Latvia, the third such sighting reported since November. While the submarine was not in Latvia's territorial waters, it was traveling in the country's exclusive economic zone, the 200-mile stretch from Latvia's coast that it can use for energy production. According to the Latvian armed forces, the submarine was only 27 miles from the start of Latvia's territorial waters, or around 39 miles from the country's coastline. Previous sightings of Russian naval vessels occurred in November 2014 and February 2015 when a corvette-class warship and

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on Maritime Terrorism and Piracy at the three-day Counter Terrorism Conference in the state capital.

Russian manufacturers. Sevmash OJSC is a part of the United Shipbuilding Corporation, Russia's largest multiprofile shipbuilding complex.

Operation Hamla kicks off Russia to develop 5th-Generation Submarines Source: The Times of India 19th March 2015

Source: Naval Open Source INTelligence 22nd March 2015

VISAKHAPATNAM: The two-day coastal security exercise -- Operation Hamla -- kicked off along the Andhra Pradesh coast. The joint exercise, conducted by the Indian Navy, Coast Guard, marine police and civil cops, is aimed at testing the preparedness of the security forces in protecting the coastline of the state from terrorist attacks. The exercise is being closely monitored by the joint operations command at the Eastern Naval Command. Similar exercises are also being conducted in Tamil Nadu and Puducherry. The short-range Missile for IAF

supersonic

BrahMos

Until 2020, Russia will work actively on building fourth-generation submarines. The Russian Navy gave the defenсe industry an assignment to develop 5th-generation submarines, Navy Chief Viktor Chirkov said. "We have formulated the task for the defenсe and industrial sector to develop fifth-generation submarines. This work is ongoing. There will be no pauses in the development and designing of new submarines," the Russian Navy commander-in-chief said. The need for the development of such submarines is prompted by the "objective timeframe and the cyclical nature of the use of ships and submarines, and also the swift advance of ship-building technologies and scientific and technical progress in the field of submarine-building," the Navy chief said.

Cruise

Source: Sputnik 19th March 2015

3 Indian Navy Ships arrive at Chittagong Port

The Indian Air Force plans to start mounting BrahMos cruise missiles on its aircraft in 2016, BrahMos Aerospace CEO Sudhir Mishra told RIA Novosti. The short-range supersonic missile was jointly developed by Russia and India and has been in use by the Indian Navy since 2005. "The missile is scheduled to be adopted in 2016, ten more tests will be carried out by the end of the year," Mishra said.

Source: www.dhakatribune.com 20th March 2015

With an aim to progress relations between the Bangladesh and Indian, three ships have arrived at Chittagong port on a three-day courtesy visit. Three ships, including two battleships of Indian Navy and a ship of Indian Coast Guard arrived at the port. The three ships— INS TIR, INS KESERI and ICGS BHERUNA anchored in the port when Chittagong Regional Chief Staff Officer of Bangladesh Naval Captain AKMM Sherafullah welcomed the ships.

Russian Helicopter Company Seeking to Expand in Asia-Pacific Region India is Russia's biggest arms trade partner, with more than 70 percent of India's military equipment coming from Russia or the former Soviet Union, according to Russia's state arms exporter. The two countries are taking part in the major Langkawi International Maritime and Aerospace Exhibition (LIMA'15), currently underway in Malaysia.

New Indian Leadership has Energised Indo-US ties: Official Source: PTI 20th March 2015

Sevmash Lays down Nuclear Submarine of New Generation

WASHINGTON: The US remains heavily engaged with India and the strategic relationship between the two countries has energised under the new leadership of Prime Minister Narendra Modi, a top Pentagon commander has said. "Last year, India held the largest election in its history. With new leadership in place, India is energising the US-India strategic partnership," Admiral Samuel J Locklear United States Navy Commander of Pacific Command has said. The US military remains heavily engaged with New Delhi's military, having conducted 69 major exercises in the past five years, he said.

Source: Port News 22nd March 2015

On March 19, 2015, Sevmash OJSC laid down nuclearpowered multipurpose attack submarine ARKHANGELSK of new generation project Yasen-M, Deputy PM Dmitry Rogozin wrote. The nuclear-powered multipurpose attack submarine is the fifth in the series Yasen class ships designed by the St. Petersburg based designed by the Malakhit Central Design Bureau. The project features many innovative technical solutions not applied in national shipbuilding before nuclear submarine SEVERODVINSK, the lead ship of the series built by Sevmash was delivered to RF Navy on June 17, 2014. Nuclear-powered multipurpose submarines KAZAN, NOVOSIBIRSK and KRASNOYARSK are being built to the improved project Yasen-M. Equipment and materials are to be supplied by

Pirates Steal Fuel from Malaysian Tanker Source: World Maritime News 20th March 2015

The Malaysian-flagged SINGA BERLIAN, built in 1993, was boarded by masked pirates some 37 nautical miles south of Pulau Repong, Indonesia. The vessel was en route

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from Singapore to the island of Labuan in Borneo, Malaysia. Once on board, the pirates took hostage of the crew members, damaged all the communication and navigational equipment and proceeded to transfer the marine fuel cargo from the tanker into another vessel. It has been reported that 1,500 tons of marine fuel had been syphoned from Singa Berlian before the armed group escaped. One crew suffered a minor injury during the incident, IMB said.

3.8nm off Tanjung Sengkuang, Batam Island. Nothing was found missing onboard and the crew was reported to safe. "From the close proximity of the two incidents, it is of high probability that the robbers will continue to pry in this area over the next few days," ReCAAP said. "The ReCAAP ISC recommends vessels to take extra precautionary measures when operating in this area, especially in the hours of darkness, post extra all round lookouts and alert the authorities as soon as possible, even in attempted cases.

Shaurya Chakra for Navy Hero who Saved 94 on SINDHURATNA

PT PAL to build Submarine Infrastructure in 2016 Source: Antara News 23rd March 2015

Source: Express News Service-New Delhi 22nd March 2015

Maritime Security Important for India's bilateral ties, says EAM

President Director of state-owned shipbuilding company PT PAL Indonesia M Firmansyah Arifin said it will build submarine infrastructure in 2016 before it builds submarines for the defense ministry. "First we will build infrastructure. With the infrastructure we could build more submarines in the future," Arifin said. Indonesian Navy needs to have six new submarines to strengthen its fleet that consist of only two, KRI CAKRA-401 and KRI NANGGALA-402. Both of the existing submarines were made in Germany. He said submarines are vital for the country's defense as seas make up most of the country's territory our country. "Indonesia needs at least 12 units of submarine. Currently we have only a few and they are all outdated," he said.

Source: News Central by Exsees 22nd March 2015

„Make in India' in Focus when Qatari Emir comes calling

Foreign Minister Sushma Swaraj said maritime security is a key dimension of its bilateral ties with Indian Ocean rim countries and the existing trade potential between nations on the Indian Ocean can be increased through sectoral cooperation. Swaraj was speaking after inaugurating an international conference on "India and Indian Ocean: Renewing the Maritime Trade and Civilisational linkages" in Bhubaneswar. Swaraj added India values its trilateral maritime security cooperation with Sri Lanka and Maldives and is exploring possibilities of expanding it to include others in the Indian Ocean region, particularly in Seychelles and Mauritius. The foreign minister also said Indian navy has been playing an important role in this through increased bilateral and multilateral maritime exercises but added that the region is also witnessing some hurdles.

Source: The Financial Express 24th March 2015

The government conferred the Shaurya Chakra on the late lieutenant commander Manoranjan Kumar for saving "94 crew members in the submarine" INS SINDHURATNA, which sank on February 26, 2014. The incident had led to the resignation of former Navy chief Admiral D K Joshi. Kumar's mother received the medal from President Pranab Mukherjee. According to the citation that accompanied Kumar's medal, "the officer" disregarded his personal safety and "ordered evacuation of 13 personnel to safer areas".

Pirates Board Bulker and Singapore and Malacca Straits

Containership

The central government's 'Make in India' drive would be in focus during the visit of Qatar's Emir Tamim Bin Hamad Al Thani to India. The visit will also see New Delhi seeking to invest in major infrastructure projects in the Gulf country which is hosting the FIFA World Cup in 2022. The emir, who arrives on a two-day visit, will be accompanied by a high-level delegation comprising ministers, senior officials and captains of industry. The talks between the visiting leader and senior Indian leaders would focus on investment opportunities for Qatar in India, especially in the light of the unveiling of the 'Make in India' programme in India as well as possible Indian opportunities — for engineering, procurement, construction firms — in Qatar as it prepares for the FIFA World Cup, said external affairs ministry spokesperson Syed Akbaruddin. Both sides are expected to sign several agreements on "working out a legal architecture to ensure people-to-people flows between India and Qatar are regulated in a manner that is in accordance with international law", he added.

in

Source: Seatrade-Asia 23rd March 2015

Pirates boarded a containership and bulker in the Malacca and Singapore Straits. At 0545hrs on 21 March the containership MSC VANCOUVER was boarded while underway by seven pirates armed with knives about 9nm east of Palau Karimun Besar. The second engineer was robbed of a gold chain and watch and no further sighting of the gang was reported. Earlier at 0100hrs four men boarded the bulker CAPETAN GIORGIS while underway

Anil Ambani's Reliance Defence partners with Sweden's SAAB for Naval UAVs Source: Hindu Business Line 23rd March 2015

NEW DELHI: Anil Ambani's Reliance Defence and Aerospace has tied up with SAAB of Sweden to bid for the

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ship-borne unmanned aerial vehicle (UAV) programme of the Indian Navy, valued at 1,000 crore. Sources in the know said the tie-up will probably mark the entry of European UAVs into the Indian market, which has hitherto been dominated by the Israelis.

ship of the series in quick succession of less than four months speaks of our unwavering commitment towards timely delivery of ships," GSL chairman and managing director ShekharMital said. Navy Rings China Nuclear Sub Alarm

Singapore Reaffirms Commitment to Regional Counter-Piracy Efforts

Source: Pakistan Defense 25th March 2015

Source: MPA 24th March 2015

NEW DELHI: The Indian Navy has flagged concern over the deployment of a Chinese nuclear submarine for antipiracy patrols in the Gulf of Aden that transited through waters close to India. The navy has told the government that the submarine, probably a Shang-class Type T094 nuclear-powered boat, was capable of "profiling the coastline." The SSN (sub-surface nuclear) attack submarine was deployed from December 13, 2014, to February 14, 2015. The deployment of the submarine that joined a Chinese task force of two frigates and a fleet supply ship just for counter-piracy does not make operational sense, the navy has pointed out. An SSBN (sub-surface ballistic nuclear) submarine - that also forms part of the Chinese PLAN (People's Liberation Army Navy) fleet - transiting the same route as the SSN would have brought India within range of a missile, the navy reported to the government. An SSBN, unlike an SSN, is both nuclear-powered and equipped to launch nuclear-tipped missiles.

As a Contracting Party to the Regional Cooperation Agreement on Combating Piracy and Armed Robbery (ReCAAP) and host to the ReCAAP Information Sharing Centre (ISC) since its establishment in 2006, Singapore is pleased to have participated at the 9th ReCAAP ISC Governing Council Meeting held from 17-19 March 2015. Singapore takes a serious view on the increase in incidents of piracy and armed robbery against ships in Asia, including incidents of oil siphoning. Based on ReCAAP ISC's annual report for 2014, there were 183 incidents in 2014, a 22 per-cent increase compared to 2013. Singapore urges all stakeholders to strengthen their cooperation to deter and combat piracy and armed robbery against ships incidents in the region. Indian-built Submarine in Advanced Construction Phase

056 Corvette Suitable for PLA Navy Defense in South China Sea

Source: Platts 24th March 2015

Source: Want China times 24th March 2015

NEW DELHI: The first of six Scorpene attack submarines being built in India by Mazagon Docks Ltd has taken to water as it enters an advanced stage of completion. The vessel is now on schedule to be delivered to the Indian Navy in September of next year, with the remainder of Scorpenes being handed over at nine-month intervals. "Both the pressure and the outer hull of the first Scorpene are in place," an unidentified Indian Navy source told. "Much of the internal fit is also progressing well." The submarine will now be placed on a pontoon, and tugged out of MDL docks to the nearby Indian Navy Dock. This will free one precious submarine-building dock at MDL, and thus help in meeting deadlines for subsequent Scorpenes." The Scorpene is a French-designed submarine from DCNS, which is transferring technology to Mazagon Docks Ltd under an agreement with Indian authorities.

As China launched its 25th Type 056 corvette on Mar. 19, the Sina Military Network based in Beijing said the PLA Navy will be able to control the disputed South China Sea with between 10 and 20 of such vessels. China is estimated to be building at least 40 Type 056 corvettes with a pricetag of US$8 billion to compete against the United States' littoral combat ships deployed to the Asia-Pacific region. The US Navy plans to operate four littoral combat ships from its base in Singapore by 2018 according to the Diplomat, an online current affairs magazine based in Tokyo. It will become a great obstacle for China to put the disputed South China Sea under its control then. Navy's Fourth Kolkata

ICG Offshore Patrol Vessel „SHAURYA' Launched

Indigenous

LCU

launched

in

Source: IANS 24th March 2015

Source: Times of India 24th March 2015

The fourth indigenous Landing Craft Utility (LCU) designed and being built by the Garden Reach Shipbuilders and Engineers Ltd. (GRSE) for the Indian Navy was launched. Having capability of carrying Main Battle Tanks (MBTs), apart from other equipment and troops, the LCUs are designed for multi-purpose amphibious operations for the Indian Navy and the Army. The navy had entered an agreement with GRSE for eight LCUs in 2011. The first vessel of the series was launched in March last year and is expected to be commissioned early 2016.

Impressed with the quality of vessels delivered by Goa Shipyard limited (GSL), the Indian Coast Guard (ICG) is seriously considering the purchase of an additional five offshore patrol vessels (OPV) from the Vasco-based defence public sector unit and is likely to sign the contract for the same shortly, ICG additional director general Rajendra Singh said. Singh was speaking at the launch of the ICG ship 'SHAURYA', the second of a series of six OPVs that the Coast Guard had ordered for."The launch of the second

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Govt yet to decide on purchase of Japanese Amphibious Craft

littoral combat ship Gowind-class corvettes in early 2019, according to the shipbuilder. The corvettes, which have low-detection stealth capabilities, would be among the most modern warships in the region. "The first LCS will be floated in early 2018 to undergo acceptance test at harbour and sea. God willing, the first ship will be handed over to the government in March 2019," said defence director Anual Murad of Boustead Heavy Industries Corporation Bhd, which is building the ships in Lumut. Construction began at the end of last year under a RM9 billion contract.

Source: The Financial Express 24th March 2015

Even as defence minister Manohar Parrikar is heading on his first foreign trip to Japan, followed by South Korea, the government has informed the Lok Sabha that no decision has been taken yet on the purchase of Japanese long-range 12 US-2i aircraft for the Navy for around $1.65 billion. As part of India's effort to step up its defence diplomacy, Parrikar will undertake a two-day trip starting from March 30 to Tokyo, the first foreign visit by an Indian defence minister since November 2013. Though the thrust of Parrikar's visit will be increasing defence cooperation and pushing the government's 'Make in India' initiative in Tokyo, the two sides will be discussing the Shin Maywa US2i amphibious aircraft.

India wants to lease another Russian Nuclear Submarine Source: TASS 25th March 2015

India has asked Russia to transfer another nuclear submarine for lease, a high-placed source in the system of Russia's military and technical cooperation with foreign countries said. The project 971 Kashalot-class submarines may become the second submarine that Russia transfers to India for lease, the source said. "In January this year, the Indian side suggested transferring the second project 971 multipurpose nuclear submarine KASHALOT for lease," the source said, adding "the Russian side is studying the issue." "The procedure will most likely be similar to the procedure, which was used for transferring the first submarine called Nerpa to the Indian side," the source said.

New Commanding-in-Chief for Western Naval Command Source: Indian Express 24th March 2015

KOCHI: Flag Officer Commanding-in-Chief, Southern Naval Command, Vice-admiral S P S Cheema AVSM, has been appointed as the next Flag Officer Commanding-inChief of the Western Naval Command on the retirement of Vice-admiral A K Chopra, the present incumbent. Viceadmiral Cheema was commissioned into the Indian Navy on Jan 01, 1977. He is an alumnus of the National Defence Academy (NDA), Khadakwasala; the Defence Services Staff College (DSSC), Wellington; and the College of Naval Warfare (CNW), Mumbai.

Somali Pirates shifting Location towards India: Manohar Parrikar Source: The Economic Times India 24th March 2015

BHUBANESWAR: Beaten back in their usual area of operations, Somali pirates are "shifting their location" towards India, but the country is watchful to deal with such threats, Defence Minister Manohar Parrikar today said. "Today's threats are not traditional. Somali pirates, after being neutralised by various countries' navies, are shifting their locations towards India. Because their (shipping) lanes are heavily guarded, they have moved 30-40 nautical miles, although they still are 450 nautical miles away from India. "They may not be next to India but... We are watchful and careful," Parrikar said at an international conference on 'India & the Indian Ocean: Renewing the Maritime Trade &Civilisational Linkages', organised by the Institute of Social and Cultural Studies (ISCS) jointly with Research and Information System for Developing Countries (RIS). Calling for greater cooperation between the neighbouring countries, he said, "The Indian Ocean can be an enricher and also a destroyer, hence we should also be prepared for disaster and develop strong relationships and communication with neighbouring countries to avoid any kind of disaster." Pitching for a creation of a common platform for the Indian Ocean rim region, he further said, "We are in a common grid and are tied to each other. If India strengthens, being the focal point and located strategically, it can facilitate others."

Indian Navy Commissions 3 Immediate Support Vessels at Eastern Naval Command Source: Times of India 25th March 2015

VISAKHAPATNAM: The Indian Navy commissioned the second batch of three Immediate Support Vessels (ISVs) at the Eastern Naval Command (ENC) base. Two of the vessels were built by Rodman Spain and the other one by Abu Dhabi Ship Builders (ADSB). The project is a joint collaboration between Oil and Natural Gas Corporation (ONGC) Ltd, Ship Builders, and the Indian Navy. A base for the 84th ISV squadron will be set up in the city. Speaking on the occasion, Flag Officer Commanding-inChief, ENC, Satish Soni said these vessels were delivered at Mumbai naval dockyard. Later, they sailed almost 1,200 nautical miles from Mumbai to Visakhapatnam. He said the ISVs proved their sturdiness by successfully crossing the Gulf of Mannar facing strong winds and high seas. Stealth Corvettes for Navy by 2019 Source: Bernama 25th March 2015

The Malaysian Navy is expected to receive its first of six

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Maritime Policy & Law More Ships on-time, but longer delays

standardization to facilitate data exchange, terminal handling charges and service levels in international transport, GSA said.

Source: Drewry Maritime Research 19th March 2015

Entertainment on the High Seas

The on-time percentage of liner services reliability improved slightly in February but while a higher ratio of ships were hitting their schedules, for those that missed the berthing window the length of delay widened, according to Drewry's enhanced product Carrier Performance Insight some 55% of ships in the three key East-West trades arrived within +/- 24 hours from the advertised ETA, up by 6.6 percentage points against January's historical low of 49%. The average deviation from the ETA to actual arrival extended from 1.9 days in January to 2.1 days. The most reliable carrier in February was Maersk Line with an average on-time performance of 76%, the same as in January. Some 10 points adrift were Cosco on 66%, Evergreen on 65% and K Line with 63%. At the bottom of the rankings were Wan Hai (38%) and PIL (14%). "The monthly on-timer percentage improvement was the result of higher reliability in the Asia-Europsope trade, which seems to have benefited from more settled services now that the new alliance structures are in full swing," said Simon Heaney, senior manager of supply chain research at Drewry. "The Transpacific trade continued to suffer despite the mid-month resolution to the US West Coast labour contract dispute and was largely responsible for the longer overall deviation," Heaney added. To highlight the impact of the USWC labour dispute on reliability, out of the 743 Transpacific ships calling at either Los Angeles or Long Beach during February only 8% arrived as planned, with the average deviation a huge 10.7 days. In January the same figures were 17% and 4.2 days respectively. "The end of the USWC labour dispute and the bedding in of new alliance services should mean that reliability has hit the floor and will improve in the coming months, albeit slowly," said Heaney. Building on Drewry's long established schedule reliability benchmarking that started back in 2005, the new Carrier Performance Insight provides the ability to benchmark the reliability performance of container carriers on a port-to-port, trade lane, service and industry-wide basis. This information is available via a user-friendly website powered by data from e-commerce platform Cargo Smart.

Source: Clipping News Worldwide 20th March 2015

Those on commercial shipping vessels will no longer have to wait until they reach dry land to catch-up on the latest films, sports and news as Inmarsat, the leading provider of global mobile satellite communications services, has launched its latest service, Fleet Media, which will bring the most recent viewing content to those at sea. A ground-breaking agreement with NT Digital Partners, a joint venture between global content agency Spafax and the world's largest non-theatrical distributor Swank Motion Pictures Inc., has enabled Inmarsat Maritime to bring Hollywood to the high seas with its innovative Fleet Media service. A comprehensive catalogue of Hollywood and international blockbusters and television programming, along with sports and news content will be available to crew over the Inmarsat network for on-demand, offline viewing. Fleet Media is currently available on XpressLink and will soon be available across the wider Inmarsat Maritime portfolio. Watching films, sports and news on tablets, laptops and smartphones brings much more than simple viewing pleasure. It helps keep seafarers connected to the outside world and their world at home, improving their quality of life while aboard a vessel. Ronald Spithout, President of Inmarsat Maritime said: "This is a revolutionary service for Inmarsat and for the maritime sector. It has been uniquely designed to support the industry in attracting and retaining their skilled personnel, as it serves as a game-changing differentiating factor in recruitment. While life at sea has historically been socially isolated, this service bridges that gap allowing seafarers to be more integrated and connected with their lives ashore than ever before. Fleet Media brings life on land to those living at sea." ITF investigates Labour Rights Abuses on Thai Fishing Vessels Source: ITF Global 22nd March 2015

Global Shippers' Alliance Launched

An ITF delegation has boarded industrial fishing vessels landing their catch in Songkhla port, Southern Thailand, as part of an investigation into labour rights abuses. The four strong team, who will be in Thailand for six days, found that fishers on board were subject to poor working conditions, cramped accommodation and long contracts, some of them with no hope of returning home with any pay. Vessels fishing in the gulf of Thailand and Malaysia drop off their catch in Songkhla port daily for selling or canning locally. There are reportedly 40,000 Thai vessels operating with only 10,000 registered (many with fake licences) and unregistered migrant workers. This 'cloak of

Source: World Maritime News 20th March 2015

The parties signed the Memorandum of Understanding in Surabaya, Indonesia. GSA intends to engage in constructive dialogue with national governments, supranational bodies, NGO's, transport organizations and organizations of logistic service providers and strive for better cooperation. Subjects that are important to shippers are, amongst others, fair pricing of transport including surcharges in maritime and air transport, proper competition, security and customs regulations,

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invisibility' allows the boat captains to treat workers like modern day slaves. ITF inspector Keith McCorriston commented on the conditions found on a vessel he inspected: "The crew were scared to talk to us. They had no contracts, no toilet, no shower, no mattresses. Cooking facilities consisted of an open flame and basic utensils, the 24 crew slept in cramped accommodation. We spoke to one fisher who had been on board for 10 months, although we suspect this is a gross understatement." Mark Davis, ITF deputy regional secretary for the Asia Pacific region, added: "The industry is facing huge challenges throughout the region but it is the workers who are suffering because of this. Neglect and abuse are rife for migrant workers and Thai nationals too. How have we got to a position where a fish has more value than the worker who catches it?"

seem to have the confidence and devotion they once had. They are now looking at alternate sources to find solutions to their problems. The latest technology has given much smaller companies the capability to offer these services. These companies have developed tools specifically to help ship owners. There is now an increasing trend and in fact several cases of ship owners opting for such boutique companies. For instance, companies that specialise in performance management are increasingly approached by ship owners as first choice to measure or monitor performance. Niche companies with their more accurate tools and capabilities are now called upon to play the role of the third umpire in the industry. Such companies are now frequently contracted for projects such as measuring the impact of energy saving devices retrofitted, paints applied or modifications made.

MPA Singapore Statement on Vessels detained in Indonesia

IR Class Launches High Level Advisory Committee in UAE

Source: MPA Singapore 24th March 2015

Source: IR Class 25th March 2015

MPA is in contact with the Indonesian authorities to assist in the investigation. In response to media queries on the two separate incidents of merchant vessels managed by Singapore companies detained in Indonesia, the Maritime and Port Authority of Singapore (MPA Singapore) spokesperson said: "Recent media reports quoting the involvement of four Singapore-registered vessels and four Singaporeans in the two incidents are inaccurate. In particular, we wish to clarify at this juncture, that only two of the four vessels are Singapore-registered. In the earlier incident first reported on 5 March 2015, 'DM 55' is a Singapore-registered vessel while 'SEA SPARROW 1' is Belize-registered. In the second incident first reported on 9 March 2015, 'ASL GLORY' is a Singapore-registered vessel while 'AST 1837' is Indonesia-registered. Of the persons reportedly detained, only one is Singaporean, a marine surveyor, in the incident first reported on 5 March. The Singapore Consulate in Batam had rendered consular assistance to the Singaporean and facilitated his return on 16 March 2015. None of the other crew members on board the four vessels were Singaporeans.

IRClass (Indian Register of Shipping), a leading classification society and IACS member, has set up a senior level advisory committee in the United Arab Emirates in an effort to increase activity and foster business links in the region. The committee comprises of 11 senior representatives from the shipping industry in UAE and is headed by Mr. Leonid B Culas, who is the chairman of the Transworld Group based in Dubai. The committee will meet on a half yearly basis in order to give high level strategic advice to IRS on how the organization can deepen and strengthen its business links and activities in UAE. IRS currently has a growing volume of both marine and nonmarine projects in the UAE and wishes to capitalize on its already strong presence there. Time for IMO to tie down the Rules on how to secure Containers on Ever-larger Ships Source: The Load Star 28th March 2015

The International Maritime Organization (IMO) has acted on container weights, amending the Safety of Life at Sea Convention (SOLAS) to require verification, and it has progressed on packing by approving the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code). Both are significant moves to improve safety and cargo integrity. Now, as larger container tonnage becomes commonplace, it is time to turn the attention on lashing and securing. The advent of ground-breaking designs for larger containerships appears to offer greater opportunity for unit cost savings. Plans are afoot for ships even larger than the 19,000 teu giants recently entering service, with Lloyd's Register and others talking of ships up to 24,000 teu. Inevitably, many ports and terminals are gearing up for this onslaught of mega containerships – and others will be exercised with the prospect of increased feedering activity utilising tonnage 'cascaded' from the east-west deepsea services and emerging 'mega-hubs'. A number of concerns have been raised over the last decade about loss of containers at sea.

Rise of the third Umpire in Shipping Source: Splash 24/7 20th March 2015

Classification societies have played a major role in shaping the shipping industry and they have for decades played an incredible role of setting and maintaining the standards at the highest level. Classification societies have enjoyed the unchallenged respect of shipowners. The reason for this is – for solutions to problems, answers to questions, advice and for almost everything else, the first place the shipowner turned to, is class. They developed a reputation of being the undisputed 'guardians of the industry'. Of late however classification societies have realised that it is increasingly lucrative to have other revenue streams besides their core area of ship classification and certification. With classification societies appearing to be chasing other business streams for revenue, shipowners no longer

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Maritime Environment three years of partnership with Damen will make us better equipped to handle the challenges, both domestically and internationally." "We are very pleased to be starting this partnership with Bellona," added Damen'sRemko Hottentot, Sales Manager Norway, stationed at Damen's Norway Office in Stavanger. "We have a strong focus on sustainability and the vision of each organisation complements the other in terms of environmental awareness. At Damen the focus will be on creating alternative solutions that contribute to reducing harmful maritime emissions into both the air and the water. This will go hand in hand with initiatives to develop cost-effective efficiencies through reduced consumption of potentially harmful inputs such as fuel, paint and lubricating oil.

HAL Cruise Ship Forced to Skip Port due to Cyclone Source: Cruise Critic 16th March 2015

A Holland America Line ship has been forced to skip a port stop in Vanuatu due to the cyclone lashing the South Pacific Island. OOSTERDAM skipped Port Vila March 13th and instead spent a day at sea to avoid the storm front, according to a statement. OOSTERDAM sailed west from its scheduled call at Mystery Island, Vanuatu, on March 12 for a day at sea to avoid the weather front. "The ship was due to arrive as scheduled in Luganville, Vanuatu, on March 14. The front is scheduled to have passed the area by this time, permitting operations as planned." There are currently three cyclones in the South Pacific and Australia -- Pam, Nathan and Olwyn. The former has devastated Vanuatu, causing as many as 89 deaths. Nathan, which was hugging the Australian coast round Queensland, has largely blown itself out. Olwyn has caused extensive damage over the past 24 hours along the Western Australia coast. Celebrity Cruises' CELEBRITY SOLSTICE set sail as planned on a seven-day round trip sailing from Sydney to New Caledonia. A statement stated: "For all our guests embarking Celebrity Solstice in Sydney please be aware that at this time we anticipate making no changes to the published cruise itinerary. The safety and comfort of our guests and crew are our highest priorities, and we are continuing to monitor the path and progress of Cyclones Nathan and Pam.

South Asian Beaches the Target of New EU Ship Recycling Rules

European, Turkish and Chinese recyclers are set to benefit from strict new EU rules on breaking up old ships, but the practice of dismantling them on beaches in South Asia at great human and environmental cost will still be hard to stop. Of all 1,026 ocean going ships recycled in 2014, 641 were taken apart on beaches in India, Bangladesh and Pakistan, according to figures of the NGO Shipbreaking platform, which campaigns for an end to hazardous scrapping on beaches. In South Asia, tankers, cruise liners and other old ships are rammed onto a beach, with hundreds of unskilled workers then taking apart the vessels with simple tools such as blowtorches. Chemicals leak into the ocean when the tide comes in. There is also a human cost. The Tata Institute of Social Sciences in Mumbai estimates that some 470 workers have died in the past 20 years in accidents in Alang-Sosiya, the world's largest set of ship-breaking beaches in Gujarat. Some 35,000 mostly migrant and unskilled workers operate there. However, a new European Union law requires EU registered ships be recycled at sustainable facilities, with a list of compliant yards likely due in 2016. The EU law will be the first large-scale implementation of the International Maritime Organisation's 2009 Hong-Kong Convention on ship recycling, which has only been ratified by three countries – Congo Republic, France and Norway. "I agree that we need to stop the shameful practice of European ships being dismantled on beaches," said Karmenu Vella, European Commissioner for the Environment and Maritime Affairs. The EU list is most likely to contain yards in the European Union, China, Turkey and North America. South Asian facilities are expected to be absent. "The European list will split the market into a safe market and a substandard market," said Patrizia Heidegger of the NGO Shipbreaking Platform.

From Pollution to Solution Source: Clipping News Worldwide 20th March 2015

The Oslo-based NGO Bellona Foundation has launched a three year partnership with the leading Dutch company Damen Shipyards Group. The main goal of the partnership is to explore and develop concept vessels for the future. The agreement will be officially signed on March 18 during an industry event in Stavanger. The Bellona Foundation and Damen both acknowledge that today's global shipping industry will need to undergo substantial change in order to achieve its own climate and environmental objectives. The NGO and Damen have joined forces to work towards reducing the impact on the climate of a wide range of commercial and leisure vessels, as well as fleets employed by the aquaculture industry. "One of Bellona's goals is to make the ships of the future independent of fossil fuels. This partnership will provide us with new knowledge on innovative shipping construction that will contribute towards achieving that objective, said Frederic Hauge, founder and president of The Bellona Foundation. "Today the global shipping industry emits large amounts of CO2, sulphur dioxide, nitrogen oxide and

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Source: Reuters 25th March 2015