MARITIME News

[mams]

Strong growth at Port Klang, PTP

By Doreen Leong


Port Klang and Port of Tanjung Pelepas (PTP) throughput is expected to grow potentially by 8% to 29% for a combined 9.7 million twenty foot-equivalent units (TEUs) on the back of increased economic activities, says Transport Minister Datuk Seri Chan Kong Choy.

Riding on the first half (1H) growth momentum, he expected Port Klang’s throughput this year to increase to 5.2 million TEUs from 4.8 million TEUs last year, while PTP would handle between four million and 4.5 million TEUs against 3.5 million TEUs in 2003.

Speaking to reporters at a briefing on July 14, Chan said throughput at Malaysian ports for the first six months registered a growth of 16.6% to 5.69 million TEUs from 4.88 million TEUs in the previous corresponding period.

He attributed the growth mainly to the increase in manufacturing activities in the country and more calls at the ports, mainly in Port Klang and PTP.

PTP posted its highest ever first-half year throughput, handling 2.01 million TEUs, an increase of 25.3% from 1.60 million TEUs in the same period last year. Vessels calling at PTP rose 5.3% to 1,584 in 1H 2004 compared with 1,504 in 1H 2003.

PTP had said with cargo volumes rising on major trade routes, in particular Asia-Europe, it had experienced strong growth in volumes as it continued to retain its premier position as a transshipment port.

Similarly, for 1H 2004, Port Klang’s throughput increased by 11% to 2.61 million TEUs against 2.35 million TEUs in 1H 2003. “We are happy with the growth of these Malaysian ports in handling TEUs, but, we are working hard to make sure Malaysian ports are still competitive in terms of tariffs, facilities and productivity,” Chan said.

He expected Port Klang and PTP to maintain their positions as the 12th and 16th largest ports in the world. Chan said the government was trying to lure more main line operators to its ports and encourage companies to ship their boxes produced in Malaysia via local ports.

“There are still leakages from some states in Malaysia, feedering to non-Malaysian ports to ship to other countries such as Europe, China and Japan,” Chan said.

He said the government was stepping up efforts to encourage value-added industries to be set up in the vicinity of the ports. The establishment of Pulau Indah free trade zone was part of government’s drive to attract those industries, he added.

He said it would definitely increase the number of boxes, either import of raw materials or export of manufactured goods.

[mams]

STAR LEO at Port of Fremantle. She was cruising in Australia for 3 months last year. Here are some pics on her voyage to Melbourne from Fremantle.

[mams]

WaveMaster Aims To Build New Yachts To Expand Business


By Yong Soo Heong

LANGKAWI, July 29 (Bernama) -- WaveMaster Langkawi Yacht Centre (WMLYC), a local company which started off in ship-repairing, servicing and refitting here three years ago, has set its sights on building new luxury yachts, says a company official.

"We are now discussing with a few interested parties to build super yachts for them," said Yii Chu Lik, the company's senior manager (sales and commercial).

WMLYC is one of the exhibitors at the three-day Global 2004 Langkawi International Dialogue business, investment and trade exhibition at the Berjaya Langkawi Beach & Spa Resort which opens Thursday.

Yii said the company aimed to move up the value chain by building new vessels after having built up its repairing and servicing expertise over the years.

For instance, it has been annually servicing more than 30 ferry boats that ply between Langkawi and Penang and Phuket.

Yii said Langkawi, with its duty-free status, had aided in WMLYC's development, both in terms of cheaper imported materials and the increasing flow of yachters to this resort island in view of its excellent berthing facilities.

"Langkawi has become a well-known stop for yachters because of the many marinas available and that in a way has helped in our company's operations," he said.

Yii said the natural deep water at the company's yard at Tanjung Lembong, about 15 km from Kuah town, also ensured easy access for all yachts and boats sent in for repairs and servicing.

Langkawi also has an adequate pool of skilled workers like welders and carpenters needed for the company's operations, he said.

"If we can't get them from Langkawi, it's also relatively easy for us to get them from other parts of the country to come here to work," he said, adding that was partly due to the island's attractiveness as a place to work and reside.

Yii, who hails from Sibu, Sarawak, said the company was also negotiating to build tugboats for the non-leisure sector.

The company has two shipbuilding halls for ship-refitting, repairing, painting and maintenance at its yard in Tanjung Lembong, measuring nine hectares in all.

WMLYC's origins came from 18 years of shipbuilding experience at WaveMaster International in Australia. To date, WMLYC, which has about 90 employees, had repaired and serviced about 180 vessels.

Its services include servicing and repairing electric control and distribution systems, installing and testing shipboard electrical components, switchboard, cables and wiring, overhauls, repairing and testing all types of combustion control systems, main engines, generators, hydraulic systems and auxiliary machines.

Yii said the company also has an in-house design team of naval architects and engineers to design for new vessels, conversion and major overhauls.

The company also has a larger design team in the WaveMaster International office in Australia acting as back-up.

Yii said WMLYC was now undertaking the conversion of a 34-metre passenger ferry into a luxury styled 37-metre dinner and island cruise vessel where the comfortable and stylish interior would delight the guests as they enjoy fine dining while cruising around Langkawi and nearby Thailand.

Other services by WMLYC include yacht management, yacht brokerage and yacht charters or cruises.

Elaborating on yacht management, Yii said WMLYC would protect the value of the yachts through maintenance, budgeting and financial control.

"The owners are provided with management reports, hence keeping them informed at all times of their vessels' status," he explained.

According to the Malaysian Industry-Government Group for High-Technology (MiGHT), the co-organiser of Global 2004 LID, it is currently working on a blueprint on the national maritime industry.

The blueprint will further the government's initiatives towards making Malaysia a "maritime nation" to catapult the country towards the forefront of the global maritime industry.

This is because the skills needed for ship-repairing and shipbuilding transcend several industries and therefore the maritime industry has the potential for "knock-on" industrial effects.

-- BERNAMA

[mams]

Dian Kreatif Wants To Be Leading Yacht Maker In S.E. Asia


MALACCA, Aug 4 (Bernama) -- Dian Kreatif Sdn Bhd, a Malaysian-German joint venture here, aims to be the leading composite-based yacht maker in South East Asia, its director, Habibur Rahman Ibrahim, said Wednesday.

The company, which had produced various sizes of yachts specially meant for international level races, had managed to penetrate markets in Hong Kong, Australia, France, the United States and a few other European countries, he said

"We have expertise, both inside and outside the country. They are also yachtsmen themselves and this enables us to make yachts that are among the best," he told reporters who were taken on a factory tour at Batu Berendam here.

The company also uses the services of international yacht designer, Juan Kouyoumdjian.

Besides making yachts, Dian Kreatif, which was set up in 1997 with 80 percent of its equity owned by bumiputeras and the balance by Hannes Waimer of Germany, also makes domes from composite materials.

Among the domes that had been built by the company are that of the Prime Minister's official residence in Putrajaya, Putrajaya Mosque, Federal Territory Mosque and Al Bukhary Mosque in Alor Setar.

The company's domes are also used for the Conference Palace Hotel Complex now under construction in Abu Dhabi involving 127 pieces in all.

Habibur Rahman said since the company ventured into making yachts using the brandname "DK Yachts" in 1999, a total of 60 yachts had been manufactured.

Some of them had even made a name for themselves in international level yacht races.

Habibur said yachts built by the company had won three races at the Thai King's Cup (Thailand), Hamble Winter Series (the United Kingdom) and the Raja Muda Regatta (Malaysia).

The company is now constructing a RM20 million yacht for a businessman from Hong Kong, Frank Pong.

Named "Maiden Hong Kong", it is approximately 35 metres long, 7.5 metres wide, weighs 35 tonnes with a mast that is 40 metres in height. It has a maximum speed of 38 knots.

Habibur said the yacht was being built from hi-tech carbon fibre and was the largest ever built using composite materials in this region.

Construction began in 2002 and is expected to be completed by October for Pong to compete in the Hong Kong-Vietnam race at the end of this year. -- BERNAMA

[mams]

MISC To Up LNG Tanker Fleet To 28 By 2008


KUALA LUMPUR, Aug 12 (Bernama) -- Malaysia International Shipping Corporation Bhd (MISC) will up its fleet of liquefied natural gas (LNG) tankers to 28 from 17 by 2008.

"We have new tankers on order and some in the process of being constructed," chairman Tan Sri Mohd Hassan Marican told a press conference after the company's annual general meeting here Thursday.

He said the new tankers were meant for specific charters and not speculative trading. These vessels were also not exclusively for Petronas but also for third parties.

As to whether the expanded fleet would increase its current global market share of 10 percent, he said the national shipping company would still maintain its position as the largest owner and operator of LNG tankers in the world.

Mohd Hassan, who is also Petronas president and chief executive officer, said the company had made a breakthrough last year when it was able to lease out its tankers to non-Petronas business.

He said MISC had strategised its line of business and decided to focus on the long-haul, an area which would give it the best value.

"It is that part of the business that is very competitive," he said.

-- BERNAMA

[mams]

MISC's profit soars to RM924.584 mln

KUALA LUMPUR Aug 12 - Malaysia International Shipping Corporation Bhd (MISC) recorded a one-fold increase in its pre-tax profit of RM924.584 million for the first quarter ended June 30, 2004, from RM462.004 million in the same quarter of 2003.

The profit was achieved over a bigger revenue of RM2.318 billion, up 56.8 percent from RM1.478 billion previously.

The group's profit includes an exceptional gain of RM320.6 million, arising from the disposal of 15 handysize bulk carriers and two container vessels, the company said in a statement here Thursday.

It said that the significant improvement was the result of better performance in the main shipping segments following the higher freight rates, improved operating efficiency as well as the inclusion of the operating results of American Eagle Tankers Inc Ltd (AET).

[mams]

EAGLE VERMONT....AMONG THE LARGEST TANKER SHIP IN THE WORLD.
OWNED by MISC

[nazrey]

Jabatan Laut Malaysia

http://www.marine.gov.my/

[mams]

Soaring oil prices blessing for MISC

By Sidek Kamiso


MALAYSIA International Shipping Corp Bhd (MISC) is likely to be a prime beneficiary of high oil prices, which will further boost tanker rates, already reaching an eight-month high.

Its increasing involvement in the transportation of liquefied natural gas (LNG), which enjoys better rates, is also expected to have positive impact on the group's revenue.

In fact, the purchase of American Eagle Tankers (AET) has significantly boosted its capacity to transport crude oil and enable MISC to capitalise on higher tanker rates.

“The company is now less reliant on revenue from its container division although that has turned around,'' an official told StarBiz.

The main capacity now is to cater to the transport of petroleum.

As at March 31 this year, MISC has a total of 46 petroleum tankers with total capacity of 4.6 million dead-weight tonnes (dwt).

The company also operates 36 bulk carriers with total capacity of 1.6 million dwt, 17 LNG tankers (one million dwt), 24 containerships (537,009 dwt) and 15 chemical tankers (395,545dwt).

MISC's position in the LNG business will be further improved in view of its plan to purchase an additional 28 LNG vessels.

Crude oil prices hit a record high of US$50 per barrel last week, following disruption in supply.

Recent reports also indicated increased demand from the US and China.

“Demand for crude oil transportation has pushed tanker rates to an eight-month high,” said Chris Eng, senior analyst at OSK Securities. Some very large crude carriers (VLCCs) could fetch as much as US$100,000 a day, he added.

The higher rates are reflected in the Baltic Dirty Tanker Index, which tracks rates charged by tankers carrying crude oil (see chart).

The concern that higher rates would be offset by higher bunker fuel costs is, apparently, unfounded.

This is because the costs would not be borne by MISC but passed on to the charterer.

The same situation also applies to MISC LNG's operations, which are run on a time charter basis, meaning that operations and fuel costs are borne by the charterer.

In this case, it was its parent company, Petroliam Nasional Bhd, which had chartered MISC LNG ships for 15-20 years, said OSK's Eng.

In view of this, MISC's valuation has become very attractive.

A recent report by a foreign brokerage also found MISC attractive, given its increasing involvement in LNG, and its position currently as the world's largest single owner of an LNG fleet.

“MISC's focus on LNG, which gives better margins, and that sets it apart from other shipping companies that concentrate on container shipping,” the analyst with the foreign brokerage said.

[mams]

Firm shipping rates to lift MISC 2Q profit
By Syed Azman


Malaysia International Shipping Corp (MISC), the world's largest carrier of liquefied natural gas (LNG), should post a 42% rise in quarterly profit next week on the back of strong shipping rates and LNG demand.

Freight rates have surged on rising global trade, particularly to and from China, and a tight supply of ships. Tanker rates have also soared as oil exporters boost output to maximise profits on high crude prices, increasing demand for transport.

Shares in MISC, Malaysia's fourth-biggest listed firm, hit a record high of 14 ringgit on Nov 3. The stock rose 7.6% in July-September versus a 3.7% gain in the main Composite Index.

"The market has been re-rating the stock. MISC earnings continue to impress people, and I will not be surprised if the stock continues to climb," said Ngu Chie Kieng, research head at TA Securities.

Analysts said current strong tanker and liner rates would boost MISC's earnings in the year to March 2005. But profits could dip in fiscal 2006 as rates soften, though this may be partially offset by increasing LNG capacity. MISC, a unit of state oil and gas firm Petronas, is expected to increase full-year net profit by 15% to 2.63 billion ringgit from 2.29 billion, according to Reuters Estimates.

The shipper, valued at nearly US$7 billion (RM26.6 billion), is expected to report next Wednesday net profit of 700 million ringgit in its fiscal second quarter to Sept 30, according to three analysts.

Like other Asian shippers, MISC is enjoying a surge in profits flowing from increased global trade with China and higher freight rates, but it is unlikely to match its first-quarter profit of 920 million ringgit, analysts said.

Belgium's Exmar and Norway's Golar LNG are among the other major LNG carriers in the region.

"The numbers will not be as good as those of the first quarter, but they will still be quite strong. Overall shipping rates are still quite high," said Ngu.

First-quarter profits were boosted by the sale of 17 bulk vessels.

MISC is looking to sell another 32 vessels, hoping to raise up to US$700 million, as it focusses on its energy business. The sale of these vessels will leave MISC's bulk division with only two carriers.

The shipper, whose tankers account for just over a tenth of total world LNG capacity, plans to raise its LNG tanker fleet to 29 by end-2008, increasing capacity by 80% to 3.6 million cubic metres.

Most of the LNG vessels are fixed for long-term charter contracts, providing the group with strong and stable earnings.

MISC, which operates 18 tankers with a combined capacity of 2.0 million cubic metres, has also gained from increased energy demand, driven by energy-guzzling China and India, and falling gas output in the United States and Europe.

China and the United States are forecast to import a total of 45 million tonnes of LNG by 2010, driving global demand to grow 8% a year, International Gas Union said last month.

MISC also has a fleet of 50 crude oil tankers including those owned by American Eagle Tankers, which MISC bought last year from Singapore's Neptune Orient Lines Ltd. It has 8 more very large crude carriers (VLCCs) on order to add to its current fleet of 5.

LNG and petroleum businesses account for about 70% of MISC's revenue. -- Reuters

[szehoong]

Okaylah this is about defence but still maritime


Submariners to train in France


KUALA LUMPUR: The first batch of submariners will begin their training in France next year ahead of the delivery of Malaysia's two French-built submarines in 2008.

Navy chief Admiral Datuk Seri Anwar Md Nor visited the training centre in Brest, in the west coast of France on Oct 27, according to a statement received from the Malaysian Embassy in Paris.

Nineteen navy personnel are overseeing the construction of the two Scorpene-class submarines in Cherbourg, the statement said.

Admiral Anwar, accompanied by Malaysian Ambassador to France Datuk Hamidah Yusoff, also visited the French naval base in Brest.

He also attended the launch of Euronaval 2004 Fair, a leading international trade show for naval defence and equipment. – Bernama

[mams]

Halim Mazmin to sell bulker for RM142m

Halim Mazmin Bhd via its 51% subsidiary Polaris Shipping Sdn Bhd is selling a capsize bulk carrier, Meridian Polaris, to Springwood Shipping Company Ltd of Malta for US$37.38 million (RM142.03 million) cash, the company said late Nov 17.

Halim Mazmin’s 51% share of the proceeds will amount to RM48.63 million after settlement of borrowings related to Meridian Polaris. Polaris Shipping signed a memorandum of agreement with Springwood on Nov 15.

The company said the disposal of the 149,475 deadweight tonnes bulker currently chartered to Nippon Yusen Kaisha would result in a gain of RM33.20 million to the group. Earnings per share will increase by 11 sen per 50 sen share if the deal is completed by April 29, 2005.

Halim Mazmin said the proceeds would be used for the group’s shipping business and fleet expansion.

Polaris Shipping acquired Meridian Polaris, built by China Shipbuilding Corporation of Taiwan, for US$23 million in October 2000. The audited net book value of the 11-year-old vessel was RM77.82 million as at Dec 31, 2003.

Howe Robinson Marine Evaluations (a division of Howe Robinson & Co Ltd), a shipbroker, had on Nov 2 valued the vessel at US$37 million.

[mams]

Govt Needs To Come Up With An Integrated Transport Policy

KUALA LUMPUR, Nov 22 (Bernama) -- The government needs to put forward a national transportation logistics plan which clearly spells out specific objectives and targets taking into account the demand for a fully integrated transport system and infrastructure, the Malaysian Shipowners Association (MASA) said Monday.

Its chairman Datuk Dr Nik Mohd Zin said the plan or policy should be used to foster the development of the transport infrastructure, among other things, in an integrated manner especially with the advent of globalisation and liberalisation.

He said the policy was needed to be drafted as soon as possible for the following three reasons:

*1) The liberalisation of global trade that demands lowering transport costs for Malaysia's manufactured goods to compete globally;

*2) The need to respond to the changing requirements of the demand and user expectation, including as reflected in the emergence of global manufacturing networking; and

*3) The need to respond to the changing key functionalities of transportation which now focused beyond the role of moving cargo from one point to another.

"Such a policy approach must be consistent to meet the expanding needs of freight transportation of the country, while being environmentally and economically sustainable.

"It may come as a surprise but it is important to note that the development of transportation infrastructure in Malaysia has never been guided by a single coordinated national transport development policy," he said in a paper entitled "Creating A Sustainable Integrated Transport Policy" at the National Multimodal Transport Conference 2004, here today.

He said various attempts had been made to adopt or frame a national transport policy, but todate the authorities had yet to have a single national transport policy.

He said the country's success in developing and providing excellent transport infrastructure had been due to a combination of factors including strong support by the government.

"Through measures and means provided by the government in the form of attractive concession agreements, sovereign guarantees, preferred interest rates, moratoriums, soft loans and grants, the private sector came to be actively involved in the development of roads, ports and shipping," he said.

Dr Nik said while the development of the transportation chain was at a satisfactory level presently, the transportation industry, in particular the maritime transportation industry, should not be left to its own device.

"We need to develop, at least an outline policy framework to foster the development of the maritime industry in the country.

"This will offer scope and strategies for the expansion of the merchant fleet as well as look into the manpower requirements both for shore-based and floating staff for the industry and also address issues relating to shipbuilding and repairing capacity, bunkering and ship supplies," he added.

He strongly believed that the absence of a structure for the coordination of the strategic planning for the transport infrastructure could lead to mismatches, duplication of resources and sub-optimal utilisation of resources and operational inefficiencies.

-- BERNAMA

[mams]

MISC to buy 3 crude oil carriers for US$100m
Jose Barrock


MALAYSIA International Shipping Corp Bhd (MISC), South-East Asia’s largest shipping concern, is strongly believed to have placed orders for three very large crude carriers (VLCCs), influential ship brokers based in Singapore, who spoke on condition of anonymity.

Mail Money was told MISC placed the US$100 million (RM380 million) per ship order with a Japanese ship- yard. It is strongly believed the yard is owned by Univer- sal Shipbuilding Corp, a venture between NKK Corp and Hitachi Zosen Corp.

Details such as the delivery of the ships and how MISC intends to finance the purchase are still murky.

Universal Shipbuilding was chosen because of its close relationship with MISC. The relationship was streng- thened after the national carrier gave a mandate to the ship builder for two VLCCs.

Last year, MISC had placed the order for the two VLCCs at US$60 million (RM228 million) each.

Increasing its VLCC fleet is believed to be part of MISC’s plan to focus on energy carriage, as much of its earnings comes from the carriage of liquefied natural gas for its parent, Petroliam Nasional Bhd.

Ship brokers say MISC may take a short-term syndicated loan, but ultimately, the carrier may use proceeds from a planned sale of as many as 32 bulker vessels for an estimated US$750 million (RM2.85 billion) to finance the purchase.

[mams]

MISC vessels sold for RM2.8b to Greek buyer
By Jimmy Yeow


Malaysia International Shipping Corporation Bhd (MISC) is disposing of its entire fleet of 32 bulk vessels en bloc to Greek shipping firm First Financial Corporation for US$740 million (RM2.81 billion) cash.

Announcing the deal on Dec 2, MISC said the sale, via a closed tender, would result in a gain of US$440 million (RM1.67 billion) over the aggregate net book value.

MISC said delivery of the vessels was expected to be completed by March 31, 2005.

MISC closed 10 sen higher at RM14.50, its foreign tranche was 20 sen up at RM14.60, and its covered warrants were unchanged at RM6.05.

Shipping players said the additional bulkers would boost First Financial Corporation's fleet to 64. The MISC fleet of nine panamax, nine handymax and 14 handysize bulkers will be added to its existing fleet of nine handymaxes, 13 capesizes and nine reefers.

Earlier reports said First Financial Corporation's holding company the Restis Group, New York-listed General Maritime Corp (Genmar) and Islamic Republic of Iran Shipping Lines (IRISL) were the three candidates shortlisted for the deal.

In October, MISC said it received several bids from international ship owners for its fleet of bulkships, which industry sources believed was worth between RM2.85 billion and RM3.42 billion.

The bidders included Norwegian and Greek ship owners. MISC had appointed several international banking groups, including HSBC and Citibank, to handle the tender for the disposal. The tender had also attracted interest from Malaysian Bulk Carriers Bhd.

MISC managing director and chief executive officer Datuk Shamsul Azhar Abbas had then said the disposal of the ships, some of which are about 15 years old, was “part of MISC’s plan to concentrate on energy shipping (liquefied natural gas, crude oil and petroleum product).

[mams]

Bigger fleet
By Jimmy Yeow


Malaysian Merchant Marine Bhd (MMM) is undertaking a fleet expansion programme by acquiring several types of vessels for over RM90 million to meet the growing domestic and regional demand for its services over the next few months.

It has already made inroads into the Philippines and the Middle-East, which is expected to enhance its performance. In the first quarter of next year, it will operate bunker trading and transport of crude oil through a joint venture with an Iraqi partner.

On the fleet expansion, its chief operating officer Capt Panichellvam Ratnam says these additional ships include two petroleum tankers of 5,000-7,000 deadweight tonnes (dwt), a roll-on, roll-off vehicle carrier (ro-ro) and a number of bulkers.

MMM currently has a fleet of 13 vessels comprising four ro-ro (500 units of vehicle each), six tankers (4,000-7,000dwt each) and three bulkships including two with 7,000dwt, and a capesize of 140,000dwt.

He tells FinancialDaily that the company has outlined plans to increase its shipping business through its 40% associate Manila Merchant Marine Shipping Corp where it chartered one of its 4,000dwt oil/chemical tankers “Dayton”. “Petron, the Philippines largest refining and marketing company with over 40% of the domestic market share, requires 25 tankers over the next five years,” he adds.

Capt Panichellvam says MMM is also exploring opportunities to ship crude petroleum to the Philippines for the oil majors apart from shipment of refined products.

In the Middle-East, he says MMM through its 50:50 joint venture (JV) with the Iraqi Oil Tankers Company will operate bunker trading and transport of crude oil via the Dubai-based Iraqi Malaysia Oil Tankers Company, in the first quarter next year. “It will provide a new and significant source of revenue and earnings for MMM. We expect the security situation in Iraq to improve soon,” he says.

In September, MMM announced that the JV would operate from Umm Qasr in Basra and serve all oil terminals and ports in Iraq as well as the Arabian Gulf. It will also set up ship repair facilities and marine supply centres in Iraq and the neighbouring countries.

MMM will spearhead the operational and commercial activities of the JV, which offer immense international business opportunities and serves as a platform for the Malaysian shipping company’s fleet expansion plans especially for tankers.

This will lead to the acquisitions of very large crude carriers (VLCCs), Suezmaxes, Aframaxes and Panamaxes for the transport of crude oil and other oil products and by-products.

MMM had committed two of its tankers for bareboat charter to the JV company for the bunker business operations. It would generate income from the sale of bunkers and the chartering of the two tankers.

Capt Panichellvam says MMM is also looking for another ro-ro vessel of 500-1,000 unit capacity costing RM30 million and RM40 million in anticipation of the Asean Free Trade Area (Afta) next year.

On the bulk trade, he says MMM had also tendered for the Tenaga Nasional Bhd’s coal shipment contract. Depending on the load, he says MMM will require two Panamax-size 75,000dwt bulker to ship one million tonnes of coal annually. Malaysia’s coal requirement for power generation is expected to reach 20 million tonnes by 2010, he adds.

Meanwhile, MMM chief financial officer Tan Gek Choon says MMM gearing of 1.18 times as at Aug 31, 2004 is one of the lowest among the shipping companies.

“We will maintain our gearing at 1.2 to 1.3 times even after our fleet expansion,” she says.

MMM undertook a fund-raising exercise recently involving a renounceable rights issue of up to 67.35 million together with up to 13.47 million free warrants, and proposed renounceable rights issue of up to 113.36 million Islamic Preference Shares (IPS) together with up to 45.34 million free warrants and 56.68 million free IPS warrants.

“Earnings prospects for the current financial year ending Aug 31, 2005 will be better than FY2004’s RM10.94 million net profit and RM119.54 million revenue as we have captured high charter rates and only four vessels are due for dry-docking compared with seven previously,” Tan says.

[mams]

Expansion of fleet on track, says MBC


MALAYSIAN Bulk Carrier Bhd (MBC) may have lost a keenly-fought bid to purchase 32 dry bulk cargo ships that were put on for sale by Malaysia International Shipping Corp Bhd (MISC) but it is on track with its expansion plans.

The acquisition of the fleet of 32 vessels could have fast-tracked MBC into a leading bulk cargo shipping line in the region. But the unsuccessful attempt is unlikely to dampen MBC on its fleet expansion programme.

MBC, which has emerged as Malaysia’s newest flag-ship, has strong ambitions to focus its resources on dry bulk cargo market, which it says has been paying off the firm handsomely.

The shipping line in the Robert Kuok’s stable of companies, riding on a wave of a sterling performance, recently placed orders for four product tankers at a cost of US$130 million (US$1 = RM3.80).

The four 35,000 dead weight tonnage ships will be built at Dalian Shipyard and are expected to be delivered in 2006 and 2007.

MBC, which reported an unprecedented increase of 108 per cent in its profit totalling RM196 million for the first nine months of this year on the back of RM276 million turnover (comparative period of RM146.04 million), was among the four serious contenders for the sale of MISC ships which attracted bids from scores of shipping lines and equity fund managers.

MISC sold the vessels for a cash totalling US$740 million to First Financial Corp, a holding company for Restis group, which has 32 vessels in its fleet prior to the bid. The sale of the vessels resulted in a gain of US$440 million over the aggregate net book value of the ships. — PortsWorld

[mams]

MMM To Start Marine Transportation Operations In Iraq Next Year

KUALA LUMPUR, Dec 14 (Bernama) -- The volatile Iraq will be the next port of call for the Malaysian Merchant Marine Bhd (MMM) which plans to begin its marine transportation operations in the Gulf state in March, 2005.

The company's managing director, Shahrazi Sha'ari said the company had signed an agreement with its counterparts early this year and was waiting for the Iraqi Oil Ministry's approval.

"It will be a long term agreement for about eight years and we are not doing business the traditional way. We will enter into partnership with the Iraqis," Shahrazi, who is also the chief executive officer, told reporters after MMM's annual general meeting here Tuesday.

MMM had signed an agreement with the Iraqi Oil Tankers Company to set up a joint venture company known as Iraqi Malaysia Oil Tankers Company in Dubai, United Arab Emirates.

"MMM will provide bunker trading and transport crude oil to all the four ports in Iraq and probably to other Gulf states," he added.

Besides, Iraq, the company had expanded its business to the Philippines, forming another joint venture with the Manila Merchant Marine Shipping Corporation.

To beef up its existing fleet of 13 vessels for cargo transportation, MMM plans to inject RM100 million to purchase another 20 tankers.

The company proposes to raise funds by issuing up to 67,355,000 new ordinary shares, 113,357,390 new Islamic preference shares, proposed bonus issue up to 6,735,500 bonus shares.

"We expect to raise RM90 million and plan to spend about RM70 million to purchase vessels," he added.

The company posted a slightly higher revenue of RM119.544 million this year compared to RM104.723 million in 2003.

Its profit after taxation rose to RM10.896 million from RM10.134 million previously.

-- BERNAMA

[mams]

Abdullah Commends Westport's Impressive 10-Year Report Card


PORT KLANG, Dec 14 (Bernama) -- Datuk Seri Abdullah Ahmad Badawi has given the thumbs-up to Westport's "report card," saying its progress report presented by its executive chairman, Tan Sri G. Gnanalingam was reflective of its sterling success since its inception a decade ago and spoke well of Malaysia's standing in global port operations.

The Prime Minister said Gnanalingam's "unusual way of presenting the report card" nevertheless alluded somewhat to the very points he had raised as his agenda for the nation when he took office as prime minister.

They included the need for Malaysia's first class facilities to go along with first class mentality, a call which Westport had heeded to remarkably having helped Port Klang to emerge as the 12th busiest port in the world last year.

The port's container had also grown every year since its inception from 20,000 container boxes in 1996 to 2.6 million boxes Tuesday.

Abdullah said this in his speech in conjunction with Westport's 10th anniversary celebrations before which Gnanalingam presented Westport "report card" along with a slide presentation.

Gnanalingam said Westport had adhered closely to Abdullah's credo, whereby by implementing first class processes, the port at Pulau Indah here was now among the top five in terms of world port productivity.

"Ten years ago, we were a greenfield terminal. Today, we are a world class port generating RM500 million in revenue," he said in his presentation.

Gnanalingam said Westport had also fulfilled Abdullah's call for the country to seek new sources of economic growth as Port Klang, "had within 10 years, had grown handling 1.5 million twenty-equivalent-units (TEUs) to 5.2 million TEUs."

"We have established ourselves as a regional hub facilitating world trade via Malaysian corridors and direct trade with our South-east Asian neighbours," he said.

Westport contributes one-half of Port Klang's operations, with the other being public-listed North Port.

Gnanalingam, who is also the chairman of the Federation of Malaysian Port Operators, said Westport's container productivity has increased from moving 20 container boxes per hour to 30 boxes per hour.

"We have set ourselves a consistent target of 35 boxes per hour for next year," he said.

But he said Westport's achievement was not amid a bed of roses for it was "baptised" at a time when there was one crisis after another, ranging from the 1997 Asian financial crisis, which brought trade almost to a standstill, the currency crisis, the Sept 11 terrorist attacks, severe acute respiratory syndrome (SARS) epidemic and the Avian Bird Flu.

Turning to the port's staff strength, he said from 20 in 1994, Westport now employs 2,200 people.

"With training and motivation, they are among the best in the world."

This was clearly evident when quay crane operator Azmi Ashaari broke the world record for moving boxes with 72 boxes moved within an hour.

Azmi received an award of commendation from Abdullah after the speech presentation.

"We have also demonstrated our prowess in increasing vessel productivity over the years. The last feat was 364 boxes moved with six cranes which is tantamount to 60 moves per hour," Gnanalingam said.

As for Vision 2020, he said: "We believe that we have achieved Vision 2020 in terms of infrastructure, a world class port in terms of productivity and by 2010, we will be paying our staff a minimum wage of RM2,020 from RM1,500 now."

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PM Wants M'sian Ports To Fully Exploit Potential

PORT KLANG, Dec 14 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi has called Malaysian ports to fully exploit their potential to be leaders in transportation and logistics and serve as mega-transhipment hubs.

Towards this end, he called on all players in the port and logistic industries to improve their national multimodal linkages and integration.

"All stakeholders involved have to work towards removing obstacles and inefficiency and to ensure seamless and rapid transportation of goods and provision of services," he said at Westport's 10th anniversary celebrations here Tuesday.

Abdullah also said that vision and planning for the future of Malaysia's role as a regional hub must necessarily be flexible and be able to adapt to uncertainties as well as take advantage of opportunities beyond the horizon.

"I believe that the country's transportation and logistic industries should be broadly and comprehensively defined and therefore be able to promote a wave of activities to augment this industry further."

He said: "This approach to the industry is indispensable if we are to increase our competitiveness, especially in light of the growth and extension of China and India."

The prime minister said Malaysian port operators as well as stakeholders across the transportation and logistics industries have to work together to ensure that Malaysia increased its overall competitiveness.

The way forward for these industries should be chartered with a broader overview of potential global future trends and the development of value adding complimentary services, said Abdullah, who is also the Finance Minister.

The prime minister said that historically speaking, the region of present day Malaysia was already internationally known more than 600 years ago as a locus of shipping lines and sea trade and that the country's continued push towards becoming a centre of trade was therefore part of a long standing tradition.

He said globalisation had and would continue to directly amplify shipping volume across the world.

"We have to ensure that Malaysian ports take a strong lead in regional redistribution as well as in Asia-Europe shipping," he said.

Efforts must also be pursued to make Malaysia a strategic regional transportation hub and global logistic focal point, he said.

Abdullah said Malaysian ports should join hands with the government to divide and direct their strategies towards this end.

"We must also collectively and meaningfully address issues pertaining to the safety, security and environmental quality of our seas."

The challenge for Malaysia as a trading nation, he said, was to continue its competitiveness in terms of the entire transportation and logistics network.

The prime minister also lauded Westport for emerging as a premier port in 10 years and contributing to making Port Klang the 12th largest port in the world.

Also present at the celebrations were Selangor Menteri Besar Datuk Seri Dr Mohd Khir Toyo, Westport Executive Chairman Tan Sri G. Gnanalingam and Deputy Transport Minister Datuk Seri Tengku Azlan Sultan Abu Bakar.

-- BERNAMA