grimaldi holding protagonista nello shipping da oltre 60 anni.
Transcription
grimaldi holding protagonista nello shipping da oltre 60 anni.
www.ship2shore.it/english BULKER Editor in chief: Angelo Scorza TERMINAL OPERATOR Year X, N.20 - Genoa, 20 May 2013 www.ship2shore.it/english d’Amico exerts three buying options worth 80 million dollars The Italian group’s order portfolio soars with two MR tankers and a Handymax bulk carrier, while a newbuilding is sold to Hudson Partners investment fund A few days after having sold a newbuilding to a newco 66% participated by VSL Venice Shipping & Logistics (S2S n.19/2013), d’Amico International Shipping went back ‘shopping’ in the Far East, announcing they exerted, through subsidiary Irish group d’Amico Tankers, buying options for less than 30 million dollars each on two 50,000 tons capacity MR tankers to be built at Korean Hyundai Mipo Dockyard and due in 2015 second half. d’Amico Tankers will thus augment its orders portfolio to 8 new ECO-design units (6 MR and 2 Handysize), investing over 240 million dollars. However former orderbook deletes newbuilding Hull S410, actually transferred, for some 150,000 dollars, to US investment company Hudson Partners LLC. Giovanni Barberis, financial manager of Gruppo d’Amico, illustrates that “this tanker, as much as the one acquired by the joint venture 67% controlled by VSL, will be technically and commercially managed by our subsidiary Ishima The entrepreneurial risk and forecasted profits will be allocated to the fund while d’Amico will earn on ship’s management commissions. Marco Fiori, Managing Director of d’Amico International Shipping, pinpointed that: “We are glad starting cooperating with Hudson Partners LLC, independent firm committed to assets management and capital-raising for specific investment opportunities. We perceive a soaring interest in ship tankers market shown by private equity firms and capital market funds. Admittedly DIS TOP THREE MOST READ OF THE WEEK 1° International Ship Management of Singapore, allowing to increase capacity simultaneously restraining the group’s financial exposure and equity commitment”. Genoa control tower will spark off several debates 2° intends playing as leading technical and marketing know-how supplier toward these investors”. Besides focusing on liquid bulk segment d’Amico also bets on dry cargoes, as a matter of fact they exerted buying option, through subsidiary d’Amico Dry Ltd, for construction of the seventh 39,500 tons Handymax bulk carrier (B.Delta37 plan, it follows to page 2 GRIMALDI HOLDING PROTAGONISTA NELLO SHIPPING DA OLTRE 60 ANNI. Una flotta di Ferry Cruise “Blu” per essere protagonisti del progetto “Autostrade del Mare”. Grimaldi Holding, il nuovo successo imprenditoriale di Aldo Grimaldi. Quarrels between (German) banks and shipowners at Mare Forum Italy 3° Shareholders liable with their own assets for the Deiulemar bankruptcy www.grimaldiholdingspa.com via Fieschi 17,16121 Genova |Tel. 010.27950.21- Fax 010.27950.39 www.ship2shore.it/english 2 TANKER Monday 20 May 2013 SMTV will finally submit request for bankruptcy The 2010 fire of the Rapallo, after delivery from Turkish Yard, adversely affected the company’s future After latest hopeless attempt to on 700,000 dollars debt) and after enter into a scheme of arrangement, Banca Carige denied negotiating last Friday’s shareholders meeting composition with creditors. of SMTV – G. Messina Spa As a matter of fact Genoese Bank (S2S n.17/2013) finally opted for invested 16 million euro on the submitting request for bankruptcy to long dating company headed by Genoa Tribunal. Marco and Mauro Messina to fund Final decision was taken after Turkish Atlantic affair (that recently attained zincaf_55x11 14:30 Pagina 1 detention of the 5-03-2009 Rapallo as security for 28th June 2010 accident”. In March 17th, 2011 the Rapallo was delivered to entrusted charterer Rutgers Belgium charging 13,000 dollars daily rate, however nine months out of commission were extremely expensive for the Giovanni Barberis it follows from the first page Asphalt bitumen tanker Rapallo of SMTV SHIP REPAIR MECHANICS PIPEWORK STEELWORKS s ince 1948 Molo Guardiano 16128 Genova (Porto) Tel. +39 010 2461131/32 - +39 010 2461217 Fax +39 010 2461037 e-mail: [email protected] www.zincaf.com the Rapallo, unfortunate asphalt/ bitumen tanker delivered by Turkish Gisan shipyard in 2010 however not commissioned until March 2011 due to a serious fire occurred during her first trip which induced long and expensive repairs in Tuzla Shipyard until mid March 2012. As reported in last year’s company’s balance, “SMTV summoned for delinquency the inspection company entrusted to supervise ship’s construction, assumed responsible company. Genoese shipping company’s fleet also encompasses two further tankers, the Niker (5,850 gross tons capacity built in 2005) and Tigullio (7,700 built in 2007) respectively funded by Unicredit Corporate Banking for 8.9 and 10 million euro. The three units, on which a first preferred mortgage is still pending, will necessarily be put at auction. Nicola Capuzzo worth 23.5 million dollars) at Chinese Yangfan shipyard. A year ago (S2S n.21/2012) a contract covering 6 such newbuildings was sealed negotiating 22.3 million dollars per ship. Barberis finally pinpointed they intend seizing further market opportunities definitely confiding that shipping segments they operate in will soon recover (originally tankers’ freight rates and subsequently bulk carriers’ ones) and mainly confiding that the number of market players will drop namely expanding available market shares. Such forecast perfectly matches Moody’s latest report on ‘Global Shipping Industry’ stating that: “In about 5 years three major emerging factors (drop in crude oil import, re-industrialization of some countries and upgrade of newbuildings’ plans) will be able to change shipping companies’ economic scenario affecting their financial stability”. Marco Vetulli, Moody’s vice president also added that the impact of these factors on shipping companies will vary in different business segments (dry bulk, liquid bulk and container) but it will eventually change the whole scenario, leaving few winners and many losers”. BAMBINI s.r.l. Offshore Supply and Towage Services www.bambinisrl.it T +39 0544 530537 F +39 0544 538544 Nicola Capuzzo www.ship2shore.it/english 3 CRUISE Monday 20 May 2013 American cruise lines to pull out of Europe Carnival won’t deploy any ships in 2014, while RCCL has downsized its presence in Italy As disclosed a few days ago, Carnival Cruise Line has decided not to deploy any of its ships to Europe during 2014. This decision, due to uncertain market conditions and increasing air fares an important cost item since Carnival passengers mostly come from the US has not been officially confirmed by the Miami-based company, although having been communicated in a letter sent by Adolfo Perez, Carnival’s Managing Director for the U.K. and Ireland, to the company’s UK sales network. For the US cruise line, this year will be the third one away from Europe out of the past five, defecting also in 2009 and 2010. This resolution is going to have a strong impact on the Italian market: according to what Ship2Shore is aware of, in 2014 Carnival should have made 72 stops in Italy, calling the ports of Venice, Messina, Naples, Civitavecchia, Livorno, Olbia, La Spezia and Genoa, making use of two ships, one of which should have been the Sunshine, whose refitting has been recently completed in the Fincantieri shipyard in Trieste (S2S n.18/2013). Stazioni Marittime confirmed that, although the calling had not been confirmed, some Carnival officers had visited Genoa terminal and had expressed positive reviews. But the Miami-based company may not be the only American cruise line to reduce its presence in the Italian market: it now seems likely that Royal Caribbean too is going to decrease the number of ships and callings on the Italian coasts, leaving the homeports of Genoa, Naples and Messina to better focus on Venice and Civitavecchia. The company has yet to provide an official confirmation, but during the past few weeks some facts occurred that may now seem particularly significant: first of all, as announced by RCCL in a statement, in 2014 Navigator of the Seas, this year sailing from Civitavecchia, will be deployed to the Caribbean and be succeeded by Liberty of the Seas, this year deployed to Naples, which in 2014 won’t have any RCCL ships calling its port. Genoa too is probably going to say farewell to RCCL: Legend of the Seas, now departing from the Ligurian port headed for Mediterranean Sea, next year will in fact be deployed in Northern Europe and not be replaced. About this downsizing of the Italian presence – according to its website, in 2014 RCCL will deploy ships only to Venice and Civitavecchia – the company has not released any official statements but the relocation of Navigator and Legend is official; up to now there is no news of any replacement. EURIMPRESA è una società di consulenza fondata nel 1997 da professionisti con lunga esperienza nella finanza e nel credito. EURIMPRESA è intermediario creditizio e fornisce consulenza alle imprese per la finanza aziendale, merger e acquisitions, ricerca e/o ottimizzazione del credito a breve e medio/lungo termine. Per bridge, mezzanine ed altre esigenze di capitale EURIMPRESA organizza la raccolta di fondi presso investment e private banks, investitori, family office, istituti di credito. EURIMPRESA assiste le aziende per Initial Public Offerings dalla fase preliminare alla quotazione di borsa. EURIMPRESA con il proprio shipping desk assiste gli armatori per ogni esigenza finanziaria. GENOVA – MILANO – ROMA www.eurimpresa.it - [email protected] Tel. +39 010 5761781 www.ship2shore.it/english 4 UE POLITICS Monday 20 May 2013 EU declares half failure of the Marco Polo programme Genoa Port Authority is conceiving a new intermodal link from Interporto di Novara and Central Europe The communitarian Marco Polo I programme, intending to shift from 2003 to 2006 some 47.7 billion tons/ kilometre road transport to rail or shipping transport, only achieved 46% positive results; as a matter of fact only 21.9 billion tons/kilometres freights (1.2 million trucks) were transferred. The same occurred on the Marco Polo II (2007-2013), expected to switch 87.7 billion tons/kilometres which, until last month, only reached 19.5 billion. The report submitted by the European Commission extensively illustrated how despite “the Marco Polo I programme undoubtedly fostered 434 million euro environmental benefits taking almost 22 billion tons/ kilometres freights off the roads, original ambitious goals targeted by the Commission reached 46% only, while the Marco Polo II currently achieved 405 million euro economic impact in terms of savings and minor negative occurrences”. However no waste of public money arose, as a matter of fact communitarian funds were allocated on final results achieved by intermodal plans. In Marco Polo I about 74 million out of 102 were reserved to 55 plans and only 41.8 were effectively allocated, while in Marco Polo II 450 million euro funding were forecasted and from 2003 to 2012 only 172 million were allocated to 650 transport companies. According to EC report the programme’s efficiency (ratio between allocated funds and shifted it follows to page 5 Marco Polo I and II (statistics 2003-2012) Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TOTAL proposed projects projects approved available budget (€ million) granted budget (€ million) funds disbursed (€ million) 92 13 15 13 7,3 62 12 20,4 20,4 12,3 63 15 30,7 21,4 12,8 48 15 35,7 18,9 9,4 55 20 58 45,4 19,9 46 28 59 34,4 11,5 70 21 66,3 61,9 18 101 30 64 52,2 14,3 50 18 56,9 33,6 - 54 - - - - 587 172 406 301,2 105,5 source: EACI Novara Cim interport www.ship2shore.it/english 5 Monday 20 May 2013 Marco Polo I and II - Results achieved (expressed in ton / km) Year 2003 2004 2005 2006 TOTAL Total target 12.000 12.000 12.000 12.000 48.000 Expected results 12.396 14.382 9.535 11.401 47.714 Results achieved 7.253 6.143 4.952 3.554 21.903 % Results expected / achieved 58,51 42,70 51,90 31,20 45,90 Year 2007 2008 2009 2010 2011 TOTAL Total target 20.500 20.500 20.500 20.500 20.500 102.500 Expected results 27.835 16.334 15.685 14.150 13.700 87.704 Results achieved (up to Nov 2012) 10020 3.381 2.825 3.270 n.d. 19.500 Vivere il progresso. source: EACI it follows from page 4 tons) confirms that each single euro funded by the Marco Polo I actually transferred 597 tons/km freights while the II phase recorded 438 tons/km efficiency ratio. Brussels should acknowledge that intermodal transport (truck-ship or truck-train) is much more complicated than a pure road transport and some disappointing results also ensued from current economic crisis which drastically cut transport flows. European Parliamentary report also states that “forthcoming communitarian funding committed to transport industry from 2014 to 2020 will mainly focus on the upgrade of European infrastructures aimed at improving connections and still pivoting on innovative transport mode granting lower environmental impact” Meanwhile Genoa port intends joining the new programme with a crossborder service to central Europe; ocal Port Authority advised Genoese trade associations they will be available to assist those companies intending to conceive a rail service from Genoa port to Novara, Switzerland and lower German border. The Port Authority suggests establishing a consortium with a rail operator already serving the Novara-Switzerland-lower Germany route, considering that plans encompassing a domestic line connected to an existing cross-border link are admitted (however only TEUs and freights destined to foreign markets will be reckoned). Minimum requirement is shifting average 60 million tons/kilometre per year and considering the Marco Polo II overall funds, almost two million euro could be allocated to this plan. “The plan should provide no profit and possible revenues will be deducted from allocated European funding. In essence a service in red should be operated, that’s why the call for tender also accepts existing or about to be launched services”. Plans must be submitted by August 23rd 2013 and accomplished by October 1st 2013. Nicola Capuzzo Liebherr EMtec Italia S.p.A. Via dell‘Industria, 8-12 24040 Lallio (Bg) - Italia Tel.: +39 035 69691 40 Fax: +39 035 69691 79 [email protected] www.liebherr.com Mac Port Srl Alliance Port Service Srl Via Fiorenzi, 1 - Porto San Vitale 48122 Ravenna - Italia Tel.: +39 0544 684069 Fax: +39 0544 684070 [email protected] www.macport.it Il Gruppo www.ship2shore.it/english 6 TANKER Monday 20 May 2013 Premuda financial results are getting worse The loss recorded in first 2013 quarter stands at 4.3 million euro; sale of tanker ship Fremura is next move Premuda first 2013 quarterly report shows 4.3 million euro net loss versus the same quarter of former year which recorded 1.9 million red. Time charter revenues went down 38.4%, to 16.3 million euro while operating income reached 1.9 million euro loss versus last year’s 1.3 million profit, even before-tax results dropped to - 4.1 million versus 1.8 million recorded in the same quarter of 2012. Barabino & Partners Design Genoese shipowning group, floated out at the Milan stock exchange, illustrated that “the decreasing result achieved in 2013 first quarter versus former year were ensued by the ongoing negative trend of freight rates, with the only exception of Aframax product tankers (owned through subsidiary Four Jolly brand and operating in the Taurus pool) that definitely recorded far better results. Moreover, current figures were indeed also hurt by non-deployment of FPSO Four Rainbow, actually laying out of commission and waiting to seal a new contract. The company chaired by Alcide Ezio Rosina pinpointed that regarding this unit “they lodged major complaints against former user (ENI Australia, Ed) in regard to far higher outstanding debts than the one entered into balance sheets”. www.coeclerici.com BLACK HEART, GREEN SKIN. Crediamo nelle nuove tecnologie del “carbone pulito” per costruire un futuro di benessere nel rispetto dell’ambiente. Siamo protagonisti nell’estrazione, trading e logistica del carbone, al servizio delle industrie energetiche e dell’acciaio di ogni parte del mondo. Da sempre crediamo in una fonte d’energia che contribuisce a migliorare la vita di una sempre più vasta comunità globale. Oggi l’evoluzione tecnologica ci dà ragione, dimostrando che il carbone può essere una risorsa fondamentale per uno sviluppo condiviso e sostenibile. Premuda also added that “the group’s net financial exposure amounts to 306.8 million euro with 7.9 million euro liquid assets. Net exposure actually soared by 7.2 million mainly due to the strengthening of US dollar rate versus year end ratio. According to the company’s note – considering current financial turmoil and the weakness of reference shipping market, the size and composition of debts recorded at 31st December 2012 has to be thoroughly surveyed even due to fleet’s lower capability to generate cash in such a financial slump”. As reported by international brokers, in order to make money and renew the group’s fleet, old tanker Fremura (94,000 gross tons capacity, built in 1993) will be sold to traders for 7 million dollars to be subsequently re-sold for demolition. Premuda illustrates that 48% of their fleet is engaged in satisfactory time charter contracts while current freight rates only cover 52% capacity. Finally the company states that “long-term prospects are strictly related to global recovery from the ongoing economic crisis, still badly affecting trades in major economic areas (Europe, United States and Japan) and by current financial circumstances, making specific reference to Banks attitude and euro/dollar exchange rate. However 2013 major hindrances were ensued by overcapacity engendered by deployment of further newbuildings; such occurrence could be improving next year, particularly in 35,000 tons bulker segment which should be the first going countertrend with regard to freight rates. N.C. www.ship2shore.it/english 7 Monday 20 May 2013 Shipyards’ natural selection continues Even Asia shipbuilding industry has to counter overcapacity of the whole shipping market and current newbuildings portfolio will undoubtedly delay recovery. “However – as shown in Burke & Novi’s report – number one of shipbuilding structures continues shrinking, admittedly only 75 yards are operating in China, 10 in South Korea, 15 in Japan. Shipowners become more and more demanding in choosing shipyards and builders are taking in fewer orders”. Moreover, considering the drop of deliveries and scrapping ratio increase, capacity supply and demand could reach the equilibrium. “Shipbuilders are increasingly countering buyers’ pressure having already cut prices by over 55% since 2008” continues the report adding that “further changes could be depending on the increase of steel prices which in China soared from 640 dollars/tons, recorded in September 2012, to current 700 dollars”. Meanwhile the ratio between ships under construction and global fleet THE NEW DIRECT LINER SERVICE for RO-RO and CONTAINERS EUROPE to: LIBYA from KOPERand VENICE to: BENGHAZI-MISURATA-TRIPOLI seems to be going down almost reaching 2002 figures. “Regarding oil tankers, ships under construction only reach 11% of the operating fleet, the lowest ratio since 1996, while box ships stands at 16% in terms of TEUS and bulk carriers reach 18%, whereas spurring the issuance of new orders, eventually in tankers or boxships below 5,000 TEUs. Newbuildings’ demand is expected to remain weak, for the time being it’s ranging from 45 to 65 million dwt versus 49 million dwt achieved in 2012”. Therefore disregarding subsidies to support this sector, the only event which may spur shipbuilding industry ensues from currencies depreciation in major shipbuilding countries: yen, won and yuan. Zacchello scotches rumours regarding the sale of three units Venetian shipowner Antonio Zacchello scotched market rumours regarding forthcoming sale of three 38,000 GT medium range ships encompassed in Motia Compagnia di Navigazione and Marwave Shipmanagement BV’s fleets, built between 2007 and 2008. According to brokers’ reports three MR tankers RENAMED Bloom, Saffo and Alice were sold for some 50 million dollars to Navios Maritime. However Zacchello promptly reported that “No transaction regarding this sale is pending or foreseen”. (T/T = 4 days) (T/T = 6 days) (T/T = 8 days) other ports served on ‘inducement’: TOBRUK-DERNA-MARSAELBREGA RO-RO, TRAILERS, NEW and USED CARS, CONTAINERS 20’- 40’- HC - GENERAL CARGO - GROUPAGE TEMPERATURE CONTROLLED WAREHOUSE FOR REEFER CARGO For information and bookings: MEDCROSSLINESs.r.l. Viadell’Idrogeno18,Marghera-30175VENICE,Italy Tel.0413039900-Fax.0413039999 [email protected]@agencies.it www.medcrosslines.com www.ship2shore.it/english 8 RO-RO Monday 20 May 2013 Grimaldi adds Almeria to its Mediterranean network Incoming new Chairman of Confitarma peruses Mediterranean sea trade potential Neapolitan shipowning group Grimaldi Lines announced the unprecedented launching of a new weekly call at Almeria, whereas connected to Italy and West Africa, presumably part of the MEX Mediterranean Express, engaging the Repubblica di Roma (2,400 linear meters, 600 TEUs and able to load 700 cars) to support the Repubblica di Argentina and Repubblica del Brasile in the rotation calling at Valencia, Marseilles, Genoa, Salerno, Casablanca, Dakar, Lomé, Cotonou, Abidjan and Conakry. Almeria operators ensure that this will be a first step before establishing a regular ro-ro service committed to fruit and vegetables trade between Spain and Leghorn. A month ago Almeria submitted three different plans regarding fruit and vegetables combined transport to Italy, the Netherlands and Great Britain, in essence an unconventional Mediterranean and Atlantic ‘motorway of the sea’ aimed at replacing road transports and calling an Italian north Tyrrhenian port (admittedly Leghorn and eventually Genoa or Savona). Trades will be focused in fruit and vegetables production season while main destinations will be Germany, France, the Netherlands and Great Britain. Only three maritime carriers attended the Almeria convention: Grimaldi Lines, Alveis Shipping of Spain and Southampton Fruit Handling Ltd of the UK. At the recent Mare Forum seminar in Rome Manuel Grimaldi had illustrated the utmost importance of Spain for his group, served by 5 Manuel Grimaldi to 6 ships. Canvassing the whole Mediterranean scenario, incoming president of Confitarma prompted that: “although current transport demand is rather weak, North Africa definitely represents future interesting market opportunities. Many people largely confided in the Arab Spring, however the interim phase before having a new ruling class will take long”. Moreover some protectionist behaviours are soaring, as in Tunisia: “At risk of being closed off” adds Grimaldi recalling Adam Smith words “The wealth of a nation ensues from international trades namely imports and exports”. Grimaldi calls all Maghreb countries (Morocco, Tunisia, Egypt and Libya), and the group’s helm firmly believe trades to these countries will shortly soar: “the two Mediterranean coasts can be served ‘just in time’; if all Med emerging countries will follow Turkey, it would be an ideal occurrence”. Making reference to Genoa and Savona or Salerno and Naples, Grimaldi once again prompted how their ships are often diverted to smaller ports due to port cartels which badly affect loading/discharges operations. “Port operations in short sea shipping often affects transport cost by 50% per delivery. If costs involved in a single call are too high, shipping companies have to find alternative ports”. About further investments, after having commissioned 10 newbuildings and acquired 6 ro-ro (worth overall 1 billion USD) in 2012, Grimaldi hinted they are currently negotiating further buying options”. Nicola Capuzzo The Repubblica di Roma Saturation SyStem “raffaella” conforms to imCa D024 Via Molo Giano • Genoa • ITALY • Tel. +39 010 261354 [email protected] • www.drafinsub.it www.ship2shore.it/english 9 HI-SPEED Monday 20 May 2013 TERMINAL OPERATOR A new hydrofoil for Compagnia delle Isole New customer for Compagnia Portuale di Monfalcone The Fabricia, taken from Toremar, will be serving the Aegadi islands Dutch shipping company Spliethoff launched its first departure, envisaging further monthly delivery of steel products and yachts to the United States Neapolitan shipowner Salvatore Lauro, head of Compagnia delle Isole, announced the acquisition, from Toremar (Moby Group), of hydrofoil Fabricia to be serving the link between Sicily and the Aegadi islands. According to shipowner the Fabricia, built at Rodriquez shipyard of Messina in 1987 and able to board 208 passengers will be operating in a week, while Compagnia delle Isole is still negotiating new contracts with Unions like the ones sealed with USCLA/UNCDIM for Captains and Chief engineers. Lauro also explained latest rumours regarding the alleged purchase of ferry AF Michela of Adria Ferries (S2S n.17/2013), expounding that transaction went up in smoke when almost finalized. A.M. General cargo vessel Schippersgracht, one of the largest units of Dutch shipping company Spliethoff, boasting 172 meters in length, 25 in breadth, 16,600 dwt and 21,000 dwt capacity, recently called Monfalcone loading 7,000 tons steel products and four luxury yachts to be delivered to the United States, to be followed by further monthly deliveries. “Last summer the Dutch company inaugurated a regular service connecting the Black Sea and the Mediterranean to North America and Monfalcone, able to ensure the highest efficiency and professionalism, high quality standard and major competitiveness than other Mediterranean ports, has turned into the core-port of this rotation” reported Compagnia Portuale di Monfalcone (TO Delta Group), caring freights loading/ discharge operations on site (entrusted shipagent is Friultrans). “In such a tough crisis, this is the first group trusting the port of Monfalcone, whereas operating a regular service to the US Gulf, North America and eventually the Big Lakes through the Mississippi river” reported a note of the company, extensively satisfied by the new business, despite the ongoing crisis of the port, subject to operational hindrances and still pending legal disputes between local institutions (ASPO and Region) and port operators (S2S n.13/2013). A.M. www.ship2shore.it/english 10 TRADING Monday 20 May 2013 Bolfo staying on the defense line but anticipating a big deal next month Duferco satisfied with its dropping profit: “We are still a winning model in spite of a surrounding dramatic scenario!” “It does not often happen to be satisfied with a year-on-year drop in results of 75%. So, with some trepidation, we say to be nonetheless pleased with the profit achieved in last financial year”. This frank statement is probably the most significant sentence contained into Duferco’s Annual Report 2012, a thick volume dense with data and facts lately released by the multinational (headquartered in Luxembourg, with corporate offices in Switzerland, Italy, Belgium) giant trader and producer of steel and further commodities, holding plants and branches in over 50 countries and employing 5,200 staff overall. In 2012 Duferco achieved a net profit of ‘just’ 20 million USD compared to 77 million during 2011. Total sales decreased from 20.4 to 19.4 million metric tons but trading activities rose from 13.2 to 13.5 million metric tons, although with opposite trends from steel products (7.4 to 5.5 million metric tons) to raw materials (5.7 to 7.9 million metric tons); production activities fell from 4.8 to 2.8 million metric tons, of which 1.8 long products (from 1 million metric tons in 2011) and 1 flat products (from 3.8 million metric tons in 2011). Finally distribution activities moved up from 2.3 to 2.9 million metric tons, of which 1.3 were long and tubular products and 1.6 flat products. However the Group, founded in the late ‘70s in Brazil and still owned by the Bolfo family, seemingly is not concerned at all for the declining trend of its operational margin, remarking this result has been obtained is spite of a surrounding dramatic scenario. “If we assess our performance against the backdrop of the very challenging macro economic conditions facing our sector as a whole, it becomes clear that we achieved much in a very unpredictable environment. When benchmarked against many of our peers, we feel our centralized management model and strong presence in resource economies has continued to serve us well in these turbulent markets. We are particularly pleased with our raw materials diversification program which saw a volume gain of 50%, largely driven by coking coal. Margins are thin whilst we build our market share, but the risk is well managed and we feel this is an excellent platform to continue raw materials growth in 2013 and onward”. Year on year, consolidated revenue slightly increased by about 5% while the group’s net financial indebtedness was unchanged and liquidity remained high at over 553 million USD. Indeed the good news come from the bank side, with lenders still granting strong support, as shown by several facts: the extension granted to a European USD 410 million medium-term committed Revolving Credit Facility; the successful launching of a USD 110 million Revolving Credit Facility in Singapore; the raising of an additional tranche of USD 50 million. “From a finance perspective, liquidity remains healthy with increased levels of cash reserves. All our bank facility financial covenants are in full compliance and well exceed the test thresholds. Trade credit line utilisation on aggregate averages about 60%; with our strong balance sheet, we feel well placed to cope with the frankly marginal trading conditions expected during 2013 and perhaps also in 2014. In essence, whilst they continue to search for strategic investments around the world, Duferco remains focused on investing throughout the cycle. Change of strategy ahead: towards more diversification in the direction of coking coal and new energy sources, supported by a geographically diverse operating base Over the past 6 years, the group has developed a substantially more balanced business portfolio supported by a geographically diverse operating base. “We added to this strategy in December 2012 with the acquisition of another service centre in Peru to further complement our processing and distribution coverage in South America”. Whilst steel tonnages remained flat, this does not reflect the long-standing push in value-added products sectors, perhaps best evidenced in its automotive steels business. “This initiative has started producing dividends with successful trials and annual contracts agreed with a number of major global car producers for 2013. In the new financial year, we have acquired a small service centre catering to this market which will assist us in providing a sustainable service to our key automotive accounts”. Another leg to its value-added push has Duferco headquarters in Lugano been to establish stocking and distribution hubs in Turkey and South Africa which will focus on engineering and mining related steel products. Duferco is aware it will take some time to produce satisfactory results from these efforts, nevertheless it is confident they will start building market share from 2013 onward. The group’s industrial assets performed quite badly, however in line with the market and as such had a negative impact on our overall results. In addition to the divestment of Duferco Danish Steel A/S, they have taken further steps in Duferco Steel Processing (Pty) Ltd and Makstil AD to improve the industrial results through new commercial strategic initiatives coupled with cost reduction measures. The industrial steel venture in Italy with Nucor continues to suffer since its production is almost entirely directed to the construction industry. The partners continue to support it financially, and have just approved an investment that will allow a widening of the portfolio with the view to diversify it to sectors other than construction. Of course Duferco is not being hit by losses without reacting. “In the overall scheme of our business, the industrial assets do not present a major challenge to our results going forward, but nonetheless no loss should be acceptable”. The Switzerland-based trader repeats that the definition of the global steel market of the last three years can be summarized as a reality of two separate worlds, creating a strong global imbalance, with excess capacity in the mature industrialized countries and shortage in the emerging countries “In Europe, North America and Japan, GDP growth is slow, sometimes even stagnant (the major part of European countries), while there is a very important GDP growth, especially in Asia, Latin America and the Middle- East. Value creation in the steel industry continues to be significantly related to the control of raw material sources (iron ore, coking coal etc.). The upstream factors thus determine the economic performances of industrial assets much more than the downstream factors. This represents a reversal of the traditional fundamentals of the steel industry. Historically, the market balance was relatively clear, resulting in a pricing picture that was predictable, although not it follows to page 11 www.ship2shore.it/english 11 Monday 20 May 2013 it follows from page 10 always positive for the steel industry: raw material prices were set for the year, raw material production was a known factor, since new investments were scarce due to the relatively poor outlook of the mining industry. Similarly, steel demand was relatively well known and growing only moderately. All of this changed during the past decade and is today influencing the stability of the markets for steel-making raw material. A huge margin shift from steel mills to mining has occurred and the cost curve of the different producers steepened, decreeing a large competitive advantage of steel mills integrated upwards versus the so called ‘orphans’”. Duferco is aware the future is uncertain, with a large range of factors affecting the future supply of steelmaking raw material. “Apart from the need to develop new mines, the infrastructures required to supply raw materials, such as port and railway connections to loading ports, are a strong barrier to new projects. Uncontrollable events (i.e. adverse weather conditions), often impact on the supply. Demand is heavily influenced by China steel output and Chinese domestic iron ore production. Should China and India continue to expand their steel production, prices of raw material will remain between moderate to high although they will not reach the peak price levels of the past. Should the advanced economies come back to a good rate of growth, we could even experience a new boom in raw material. This situation, in the medium long run, could lead to a progressive reconfiguration of ownership in the steel industry. The winners will be those who have most effective access to raw material sources and energies, while all the others will need to be creative, since they will face challenging times”. Duferco is adapting to the new configuration of the market; its traditional model of unconventional hybrid (production, trading, distribution, transformation, logistics) had to be changed for the production leg. “Having missed in the 90’s the opportunity to invest in cheap mining assets, operating blast furnaces became too risky; our future was no longer under our control. We had no mines, size and tradition of niche products. Our updated strategy involves: focusing on trading activities; industrial disinvestments on blast furnace, focus and defend on the production of electric arc furnace products; development of diversification activities, related to core steel business such as energy, shipping, logistics, environment and real estate, all having risk and volatility profiles”. Duferco’s strategy has entered the energy sector with a vertical integration structure, with activities ranging from trading of natural gas and electricity to production (renewable and conventional) and retail. The group is expanding in the photovoltaic and small hydro power sectors through the acquisition of plants already in operation or under construction/authorisation process, benefiting by feed-in-tariffs. On the strength of its experience in shipping and logistics, with over 15 million tons moved and 1,500 ships chartering, Duferco has entered in shipping as service provider and as an opportunistic asset player, developing the experience of partnerships with Sidernavi, Romeo Group and M.U.R.. Finally, Duferco, especially in Belgium, continues its activities in soil remediation in order to achieve a complete rehabilitation of polluted ex-industrial areas of the group and third parties. Duferco implements such activities, not Duferco Garocentre terminal in Belgium Tonino Gozzi with Giovanni Romeo (Sidernavi) and, behind, Bruno Bolfo only by providing the essential financial support, but also by providing management and management services (i.e. Duferco Engineering) which are critical for the implementation of these projects. . The Chairman’s message pragmatically not optimistic in wait for a hit in June “We are fully aware that these are difficult times that need a defensive and prudent approach. But eventually, this kind of crisis will create opportunities that, at the right time, we intend to take advantage of” states Bruno Bolfo in his usual message commenting the annual report. “It is now clear that the world recovery of 2010-2011 was mostly driven by Chinese aggressive reflationary policies, while developed economies remained stagnant. Steel intensity of the developed world is such that with zero growth, steel consumption actually declines. Europe is showing clear signs of deepening differences among individual countries, with two different speeds of economic potential. South Europe is suffering a dramatic economic contraction, and the budget constraints leave very little hope of an upturn, given that governments and consumers must reduce expenditures, and the banking system is still under stress, reducing as a consequence the level of lending to the economy” pinpoints Duferco’s Chairman. “In such a defensive environment, we at Duferco are glad to have been able to still show a profit, maintaining healthy financial conditions. Our expectations for the current year are not very positive. We will probably see an upturn in North America, given the improved liquidity, the stabilization of the housing market, and the strong fundamentals for re-industrialization (cheap energy, flexible labour and so on). Asia will grow, but at a lower level than expected, mainly due to the looming inflationary pressures in China. South America may be suffering from a change in sentiment in raw materials. Europe will see very little growth, with export being the only possible economic driver. The above picture leads to a continuation, if not a deterioration, of steel oversupply. Defense will continue to be the main line of our policy. Steel trading activities have been profitable although at a lower level than 2010 and 2011 and are expected to remain at a similar level for 2013”. Bolfo anticipates “an important strategic move is in course of finalization - with formal execution expected to be signed by June 2013 - that will add significantly to our business and to our balance sheet”. Shipping and logistics to support the core business and drive diversification “Our shipping joint venture is obviously suffering from the considerable oversupply. However, the relatively small sizes of the owned ships, the continuous search for niches employment of vessels and the comfortable level of leverage make us confident to overcome the present difficult times without problems” is the honest admission made by supremo Bolfo. Duferco Shipping SA provides seaborne transportation solutions through a team of professionals located in Switzerland, Singapore, China, Ukraine and the USA. The majority of the world-wide business is handled in the Lugano headquarters by 14 staff. The Singapore office controls all inter-Asian business, while port captains support and coordinate the loading operations in the main Baltic, Black Sea and Chinese ports, from where larger volume flows originate. Notwithstanding weak world economies, Duferco Shipping SA still charters in excess of 1,000 vessels per year, for its parcel cargoes up to large capesizes. “We are able to consolidate opportunities, build up cargo combinations and enter short to medium contracts of affreightment which greatly reduce the potential exposure to a volatile market. The Baltic Capesize Timecharter Index averaged USD 7,653 daily in 2012; this is less than half the USD 15,750 recorded daily in 2011 and the lowest average ever registered since the year 2000” the company remarks. Duferco’s logistics division has now completed the first year of operation of the multimodal platform of Garocentre inaugurated on 7 October 2011. About 300,000 tons of steel products have been shipped by barge between that date and September 2012. The flow, mainly consisting of slabs and coils, was transited via the ports of Ghent and Antwerp. “We intend to offer a diversification of its logistics services in the kind of goods handled at the terminal. The team focuses on commercial efforts to set up new regular connections for container flows to and from seaports. Special transport and Intermodal transport services for pallets are also promoted. We also aim at developing new projects for clients in the logistics sector with a clear focus on intermodal handling and transport. The purpose is to capitalise on Duferco’s experience in project development and logistics, as well as on available brownfields with intermodal facilities, so as to offer integrated solutions to clients: place, warehouse, equipment and intermodal logistics services” Angelo Scorza www.ship2shore.it/english 12 TRADING Trasteel is here to stand (and Levmet too) The Swiss steel trader confutes rumors about shrinking its commitment in Lugano and anticipates a new project to be shortly announced, while the business of its Monaco-based sister company is growing up “No, we disregard - at least in its essential part - the meaning of this move as it was presented”. Although the most authoritative source of information - the international news agency Reuters – the top management of Trasteel wish to give a quite different version of the facts from those depicted a few days ago, and that has quickly spread around the world. “Weak steel market conditions have pushed the steel and raw materials trading firm, to cut jobs and restructure the company” chairman Massimo Bolfo - previously the CEO of Duferco, one of the world largest steel trading and producing groups, who founded Trasteel in 2009 and let it grow to reach turnover of almost $1 billion in 2012 - said to Reuters. Trasteel, which has offices in Dubai, Shanghai, Santiago and Luxemburg, has replaced some executives and has cut eight positions at its headquarters in Lugano, Switzerland, where 35 staff now work, to reduce costs. “Given the lower volumes of business and expectations of a very difficult 2013 and 2014 - industry body Eurofer expects steel consumption to continue to shrink in 2013 in the EU, after a 4.8% fall last year - we have decided to cut our headcount” Bolfo continued while adding that a few raw materials traders, previously full-time staffers, had been hired as consultants to cut fixed costs. “It is true that we have reduced the number of staff resigning some people but we had to restructure the whole group in the world to adapt to the global Monday 20 May 2013 futures and options trader specializing in steel, raw materials, solid fuels, copper, aluminum, lead, zinc and nickel. Its founders and traders were instrumental in the development of forward trading on the London Metal Exchange and Levmet continues to provide liquidity to the exchange. “We believe strongly that steel futures will mature in the same way as the non-ferrous contracts, and adoption by producers and consumers will gain pace in the coming years. Steel industry participants will maintain unnecessary risks if they continue to be sceptical of the benefits of hedging. Levmet is uniquely placed to provide a complete service to the steel and raw material industry and those participants that are slow to embrace the new world are in danger of following the path of the dinosaur. Those that embrace the new world will, in the future, be stronger financially and well positioned to benefit from the expansion of the global steel market” says Levmet’s website. Its Board of Directors is made of Ashley Levett, boasting over 30 years’ experience in the metals industry; Antonio Novi, Bruno Bolfo Jr., Massimo Bolfo, Chris Adams, Gianfranco Imperato. Angelo Scorza Elitheni coal mine in South Africa is a development of Elitra, a joint venture of SNR and Trasteel situation of difficulties in the sector. So we have given up on the spot trading activities (such as the Indonesian coal) to have greater strength and therefore overheads are already covered by our captive business: for example, the slabs to the plant, the coal from South Africa - a country where we an important exclusive - refractories from our factory in China, and more. In fact we are quite optimistic, while the article referred to was only speaking of the negative side” explain an official source into Trasteel. “It has also to be highlighted that in 2012 we had important business developments derived from our investments. In a year in which the ‘giants’ of the industry have all had terrible contractions - as you know, Stemcor has lost several million dollars while Balli is even bankrupt, just to give two high-profile cases - we believe we have had a more than satisfactory performance” adds the top manager, who does not confute the rumor that the Department of ship chartering was beheaded too. “We took what we might call a technical choice, with the current volume of business on that area, it did not make sense to keep a shipping department of three people; however we are moving well in other directions and shortly we can announce a new project”. Meanwhile Trasteel’s participated company Levmet (with industry veteran Ashley Levett as the main shareholder) is still in its expanding mod thanks to increasing customer demand for hedging services. Established in 2012 the Monacobased steel derivatives joint venture is specialized in the ferrous and nonferrous metals industry, being a physical, Navi che consumano il 15% di carburante in meno? Certamente. www.ship2shore.it/english 13 BULKER Monday 20 May 2013 HEAVY LIFT Atlantska orders again from the (Chinese) Pacific coast Small ships, large cargoes The Croatian shipping company has signed a contract for 2+2 handysize bulk carriers with Qingshan yard within a substantial fleet rejuvenation plan Dubrovnik (Croatia)-based shipping company Atlantska Plovidba confirmed they ordered from Chinese yard Qingshan two 38,700 dwt handysize bulk carriers within the ‘green dolphin’ project based on environmental sustainability and lower consumption thanks to a new hull and main engine design. The first ship is scheduled for delivery by March 2015, the second by October same year. Options for 2 more sisterships must be exerted within November 2013 and January 2014, respectively, for delivery in July 2015 (so, before the second confirmed vessels) and January 2016. Last November Atlantska welcomed 79,335 dwt new Panamax bulk carrier AP Jadran, built at China-based Jiangsu Eastern Shipyard and sister to AP Argosy delivered in April 2012, while it awaits 2 other sisterships this year. In 2012 the company also took delivery of all 3 supramax (57,300 dwt) bulk carriers ordered from Korean yard STX, namely AP AP Jadran, delivered last November Astarea, AP Slano, and AP Ston (in April, May and August, respectively). In February 2012, Atlantska handed over in Chennai, India, heavy lift carrier Atlant Svenja (457 TEUs, 9,600 tons, 2x250 tons, built 1996) to a Chinese buyer and, in March, small bulk carrier Mokošica (2,600 dwt, built 2006) to a Norwegian buyer. The company’s fleet is presently composed of 18 ships, whereof 15 CONSULENZA TRIBUTARIA SOCIETARIA TAX & LEGAL ADVISOR Genova: Piazza G. Alessi 2/7 – 16128 Ge - Tel. 010.5705003 Milano: Via Ciovasso 4/3 – 20121 Mi - Tel. 02.89013843 Savona: Via Paleocapa 25/6 – 17100 Sv - Tel. 019.820099 www.studiocts.com bulk carriers ranging from handysize to Panamax, and heavy lift carriers Atlant Trina and Atlant Frauke, all owned, plus chartered-in 75,100 dwt bulk carrier Jindal Varad (built 1994), ie, Atlantska’s formerly owned Petka. The group registered in Q1 2013 an almost 29 million kunas profit (3.9 million euro) against an 84 million kunas loss in Q1 2012. Arguably, this indicates a company strategy effectively taking advantage of low newbuilding prices while being confident in a recovery of charter fees, the latter having indented Atkantska’s 2012 balance sheets, with an almost 80 million kunas loss on a 388 million turnover (against a 17 million profit on a 474 million turnover in 2011). Mauro A. Bogdanović Starting from a recent loading in Genoa, German shipping company MLB, but headquartered in Italy, expands its technical and geographical offers General cargo vessel Pacific Dawn, just returned into German MLB Sunship’s fleet, was recently loaded, at Genoa Metal Terminal, with 15 parts of an Ansaldo equipment (overall 1,113 cubic meters, 727 tons, encompassing one 230 tons item) heading for Egyptian El Dekheila. “This wouldn’t be a peculiar occurrence if the ship hadn’t loaded the whole parts by means of her own cranes (120 tons loading capacity each)” illustrated Paola Ghiani, number one of MLB Italy, Italian branch of the German group, headquartered in Genoa. The manager also added that this operation shows how even with small units like the Pacific Dawn (3,000 dwt capacity with a length of 105 meters, built in 2010, Ed.) MLB is able to lift and transport massive freights. “The group, usually engaged in the North-Eastern corridor and in Mediterranean routes is currently expanding geographically, as a matter of fact we recently cared a delivery to Brazil and two further to the Far East”, concludes the manager. A.M. www.ship2shore.it/english 14 PORTS Monday 20 May 2013 Toulon, much more than a naval port base Recalling La Spezia for its strategic role in the country, playing well as Savona in the cruise and ferry field, and competing with the port Marseilles, true ‘Genoa of France’ Toulon (France) – Toulon definitely went out in history after 1793 siege when conquered by the French monarchists to be subsequently handed over to the British troops, forcing the French army, headed by future emperor Napoleone Bonaparte, to successfully counterattack the enemy. In that occasion Toulon was renamed Port-de-la-Montagne, while the Corse Captain promoted to Brigadier General started marching to Italy: today one the largest naval base of the Mediterranean – has been recently playing (well) as Savona, silently joining, although not having former tradition, the unprecedented cruise business (as occurred fifteen years ago to the Italian port of Liguria Western Riviera) and currently attempting to outclass Marseilles, the French Mediterranean port leader perfectly matching Genoa in our comparison between Liguria and Southern France. door of the old fortified walls is still called the ‘Door to Italy’. Toulon is the first town west of Cote d’Azur – officially encompassed in Provence–Alps–Cote d’Azur Department - and renowned for its large naval base boasting a long dating tradition (as shown in the Naval Museum located nearby the Naval base, to celebrate its 200th anniversary in 2014) however still having to play its poker of cards in passengers trade, undoubtedly able to offer cruisers a wonderful Riviera and an almost unfailing mild weather, for which the French town was awarded, the prestigious Seatrade Award as Destination of the Year 2010. The ‘French La Spezia’ – undoubtedly As a matter of fact Toulon has recently operated as ‘turn around’ port, taking advantage from the high speed TGV link to Paris (3:15 hours) and the constantly soaring cruise business spurred tourism in this region that used to be popular for perfumes and flowers, admittedly alluring visitors for other attractions ,such as the wonderful Hyeres islands, whereas taking a sort of revenge on the exclusive Cote d’Azur, encompassing the most outstanding locations of the French Riviera, from Nice to Villefranche through Cannes, and also attempting to compete with Marseilles, number one of the Camargue region in terms of freight and passengers trade. The magnificent Toulon (where Jacques Cousteau originally plunged with a rough-and-ready submarine, still preserved on site), constantly called by 1.7 million passengers per year, is split into Petit Rade and Grand Rade as the Italian port of Taranto, with its Mar Grande and Mar Piccolo (Large sea and small sea) – highlighting another similarity between the two countries. Founded as a Roman colony (although rare evidence can be found due to World War II bombing), the city is surrounded by a natural bay whose marinas continually host a wide range of yachts and smaller boats (particularly fostered by French law unlike the Italian one), overlooked by 580 meters tall Mount Faron (served by a cableway) from which Toulon and neighbouring Seynesur-mer, committed to larger cruise ships, Bregaillon, accommodating ro-ro units and serving Turkey with UN Ro-Ro ferries, can be seen. That’s why a thorough visit of the port and its surrounding areas, assisted by two nice and gentle chaperon as Delphine Beudin, responsible for Var Provence Cruise Club and Port of Toulon Cruise Promotion/Operations and Anne-Marie Blum, responsible for Marketing of Var Provence Cruise Club and Toulon-Hyères International Airport, definitely demonstrates how the most wonderful natural bay in Europe, as from this year also operating a small train serving cruisers, undoubtedly isn’t a severe naval base only! Overall 23,000 people (many of whom civilians) live and work in the base, it follows to page 15 Naval Museum and Toulon Naval Base www.ship2shore.it/english 15 Monday 20 May 2013 it follows from page 14 PROVEN PERFORMANCE Comprehensive range of proven fouling control products to deliver exceptional ROI. See more on antifouling.hempel.com www.hempel.it lately deploying flagship Charles de Galle (built in 2001) and previously hosting two larger sister units: the Foch and Clemenceau. However, considering that France military commitment has been recently declining, older units are about to be scrapped, and Croatian Viktor Lenac yard already built a floating dock to demolish three of the older ships encompassed in the French fleet. The main town of the Var province, currently counting 170,000 people, was also renowned for its infamous prison, the ‘Bagne de Toulon’ (shut down in 1873 and relocated to a foreign colony) and its location allured several shipyards (subsequently turned into appealing waterfronts), while, as from XVI century, it became the largest naval base of France, able to counter 1707 Austrian-British siege and surrendering to Germany in 1942 (WW2) sinking their own ships. Its urban development was conceived and promoted by incumbent City Council, headed by former Sarkozy Minister, Hubert Falco, right wing exponent who finally disrupted public bribery launching a substantial plan of development in his native town that lately turned into a very popular site, even in sports, with a very aggressive and successful rugby team. Moreover, the small neighbouring airport of Hyeres, still boasting a high potential of development, will ensure further port’s upgrade; as a matter of fact it will be shortly privatized and major bidders are: Vinci, French giant of the infrastructures, Var Chamber of Commerce together with Nice airport and a Canadian company. Finally, the Tall Ships regatta, scheduled next end of September, will put again the spotlight on it. Angelo Scorza Delphine Beudin www.ship2shore.it/english 16 Monday 20 May 2013 CEO Casteur illustrates ambitious plans encompassing new quays and sea filling works Yannick Casteur, Managing director of Toulon Port Operations, Bregaillonbased department of Var Chamber of Commerce, illustrates that being a booming port they can’t further hesitate upgrading their infrastructures which almost reached saturation. “Admittedly passengers trades are soaring, by 2015 we envisage reaching half million cruise passengers”. In summer TCA Toulon Cote d’Azur ferry terminal (to be renamed Toulon Centre), including Fournel, Minerve and Corsica quays, is usually overcrowded by private vehicles and trailers departing to Corse. SNCM’s links to Ajaccio and Bastia, launched in 2012 on a market originally only served by Corsica Ferries (operating twice-a-day connections to Bastia, Ajaccio, Ile Rousse and Porto Vecchio since 2000), still holding 90% market flow (1 million annual passengers) definitely hampered port’s performance, while Moby Line’s service only lasted a couple of weeks. “Next June former state-owned company will replace the old Corse with newbuilding Mediterranèe, able to board 1,600 passengers and 700 cars” pinpoints Casteur, entrusted to sort out the ongoing dispute between cruises and ferries for which the lengthening of ferries quay to 400 meters is being conceived. Cruise companies are far more TCAoriented rather than calling the uncomfortable Seyne-sur-Mer Môle d’Armement, which forces passengers to take a shuttle boat or bus to reach city centre. Meanwhile a 7-year plan, implying 150 million euro investment, foresees engagement of central quays to cruises shifting ferries terminal to the far more functional Bregaillon (called by GLD Grimaldi Louis Dreyfus be-weekly service to Civitavecchia from 2005 to 2008, finally cancelled after disruption of communitarian co-funding), however not Anne Marie Blum and Yannik Casteur appreciated by Corsica Ferries. “We are also canvassing Bregaillon’s new layout so as to consent simultaneous berthing of 4 ferries, 1 ro-ro and 1 cargo unit, definitely not intending to surrender to break bulks or conventional freights”, continues the manager. As from this year a new 230 meters UN Ro-Ro ship, built in Germany, will start calling an already busy quay. Moreover the joint venture between Conseil Général du Var and Toulon-Provence-Méditerranée already approved construction, by filling an available dock, of a new 400 meters quay (exceeding some 340 meters length of the Liberty of the Seas) with 11 meters draft able to receive Oasis of the Seas units. “Preliminary and environmental studies started in November 2012 and we confide the new structure - also encompassing a terminal - will be completed by 2015-2016 season. In the meantime we are assessing replacement of Seine-surMer temporary quay with a permanent structure” illustrates Casteur adding that the whole plan implies 30 million euro funding but lenders are still unknown. Regarding marginal but not secondary businesses the manager pinpoints that demolition of 3 naval ships through Viktor Lenac floating dock will create a year job and subsequent iron scraps trade, particularly enhanced by an innovative scrapping process. “Also, last month an unprecedented pipes trade to Turkey was established and other recent cement, silicate and optical cables flows started, while in 2015 we’ll install a new equipment to restore and exploit dredging sediments from the naval base. Regarding break bulk segment next June we’ll install the first Liebherr HMK280 mobile crane”. Casteur also welcomes Monaco Marine’s intention to operate a new maintenance yard committed to yachts and catamarans recalling former Provence commitment in shipbuilding industry, currently ousted by global crisis (only Mandrier-sur-merbased IMS yard is left); 20 million euro TCA Toulon Cote d’Azur ferry terminal will soon change its name investment from 2014 to late 2015, to be operating from 2016. Meanwhile PACA Marine Cluster (300 members, 140 PMI and 176 marine security plans and eco-friendly development) pivots on Toulon, actually hosting several marine and submarine high technology firms to be merged in TPM Techno Pole Marine, located in Bregaillon where Ifremer established the European Centre for submarine technologies responsible for oceanographic equipments’ development and research. www.ship2shore.it/english 17 Cruises: RCCL’s overconfidence, MSC’s queries, Costa’s conundrum “When I originally moved from Paris to Toulon in 2007, town wasn’t so welcoming as today, as a matter of fact cruise trade, currently counting 300,000 passengers plus 1 million ferries passengers, was rather weak: 75,000 overall cruisers. Nevertheless thanks to our extensive commitment completely supported by the Chambre du Commerce, Toulon images and operations substantially changed, we currently target 500,000 passengers” says Delphine Beudin. Such development appealed all cruise companies calling the Mediterranean. That’s why the authority established to strengthen main terminal’s capacity: a new 400 meters quay, able to accommodate last generation ships, will be constructed nearby TCA terminal, erroneously called by former marketing operators TCA Toulon Cote d’Azur, generally committing its two quays to major customer Corsica Ferries and a third one to SNCM (only offering 8.5 meters draft). Although not having disclosed its intentions, Costa Crociere seems having – recklessly? – put a hand on Seyne-sur-Mer quay where The peculiar logo of the Costa Pacifica in Seyne-sur-mer “RCCL already contacted us to eventually participate in the management of the new cruise terminal, however we replied this business is not for sale” bitterly prompt Beudin and Blum. MSC called the port randomly (6 calls of the Sinfonia are scheduled in 2013), probably regretting having joined partnership with Marseilles cruise terminal. Royal Caribbean is augmenting its calls with subsidiary brand Celebrity and larger units as the Liberty of the Seas, usually berthing in Seyne-sur-Mer (10.5 meters seabed) for logistic and dimensional reasons. the two port managers, while visiting the port, surprisingly noticed the blue and yellow logo of the Italian company showing the Costa Pacifica name on it, which could be hinting a rather compromising clue. Due to the lack of available quays, as from year 2013 the area controlled by local Chamber of Commerce will also provide roads mooring, also considering that Toulon is often accommodating ships diverted from Marseilles when whipped by the mistral. “Last year we received 15 ships and overall 40,000 passengers” comments the managers. Monday 20 May 2013 Var Provence Cruise Club gives (good) figures A good 3% is the growth rate of the 10 cruise ports network in the Var, praised by cruise liners attracted by the diversity of its excursions, recording a growth of 115% in the number of calls, and of 330% in passenger volume since 2008, the launch-year of Var Provence Cruise Club at the initiative of the Chamber of Commerce and Industry and the General Council to promote cruise activity in the network, encompassing: Saint-Cyr, Bandol, Sanary, Six-Fours, Toulon / La Seyne-sur-Mer, Porquerolles / Hyeres, Le Lavandou, Saint-Tropez, SaintRaphaël/ Fréjus. “Toulon has become in just a few years a major cruise destination in the French Mediterranean. The implementation this year of a quality welcome label for passengers in partnership with storekeepers, restaurants, hotels will allow to maximize the satisfaction rate with the aim to create customer loyalty” said Jacques Bianchi, Président of Chambre de Commerce et d’Industrie du Var and Horace Lanfranchi, Président of Conseil général du Var, cofounders of Var Provence Cruise Club. 2012 was an exceptional year with 348,000 passengers; Toulon itself welcomed 311,000 passengers (+39%). Forecasts look good for 2013 with 244 calls (+3%) and 363,000 passengers overall (+4%). The 2013 cruise season is spread throughout the year and unofficially started early February in Toulon hosting two Costa calls diverted from Marseille due to bad weather. Officially, the 2013 program began on 23 March with MSC Orchestra and will end on 31 December with Celebrity Reflection entering Toulon Bay the Norwegian Jade, for an estimated 105 calls, and 260,000 passengers in Toulon. This year Toulon’s wharfs will welcome two ships simultaneously on six dates. In 2013, with 105 calls scheduled, the main port concentrates 43% of the whole network, and 71% of the passengers volume. Left nine ports will welcome 139 calls adding up to approximately 100,000 passengers. “To welcoming partial turnaround calls, a temporary cruise terminal was delivered early 2012 in Seyne-sur-Mer; a tender will be launched in summer of 2013 for the project of building a new cruise terminal aiming at commissioning it for the cruise season 2015” Bianchi and Lanfranchi said. In 2012 Toulon joined CLIA France (Cruise Lines International Association), formerly AFCC (French Association of Cruise), to support the development of home ports on the French market, and in partnership with this body, in order to boost the cruise sales by travel agencies, have organized the workshop ‘Happy Cruise’ at the Palais du Commerce et de la Mer on May 27. “In 2013, Royal Caribbean maintains partial turnaround calls in Toulon with the flagship of its fleet deployed in the Mediterranean, the Liberty of the Seas; some 400 passengers are to embark from 20 May to 21 October (22 departures every Monday) for a 1-week cruise on the following route: Toulon, Villefranche sur Mer, La Spezia, Civitavecchia (Rome), Naples, Barcelona” they noted. As for transit calls, among the 15 cruise lines who programmed the destination in 2013, notable is the arrival of a new prestigious company: Princess Cruises which will call 10 times in Toulon and 8 times with its Royal Princess, coming straight out in June 2013 from Fincantieri shipyard. “The cruise line gave us the honor to call, with Toulon as its first French port on July 16”. www.ship2shore.it/english 18 TRADING Monday 20 May 2013 A second mission completed in London for Lugano’s ‘gold’ Ticino for Finance organised in the City another successful conference to approach Europe’s most influential financial place to its operators of commodity trading sector London - Some 60 delegates – including representatives from law firms, financial services, trading and brokerage firms, transport and logistics operators, and representatives from industry and academic media sources – attended the successful conference ‘Current Trends on Commodity Trading Operations’ organised at London Chamber of Commerce by the association Ticino for Finance in partnership with Lugano Commodity Trading Association (LCTA). Peter Bishop, Deputy Chief Executive of the London Chamber of Commerce, opened the meeting by welcoming the attendees and highlighting the importance of increasing awareness of contemporary trends in commodity trade financing, particularly due to changing regulatory and policy approaches in financial services and the transactional nature of commodity trade financing compared to other segments. The first presentation was delivered by Tobias Merath, Head of Commodity and Alternative Investments Research at Credit Suisse, who focused on whether the gains seen in commodity prices (so called super-cycle ) is in fact over and if so, what implications this is likely to have on price fluctuations. The evidence provided pointed to the view that the super cycle is indeed over. Key observations included increased divergence between individual markets in addition to cross commodity correlations falling further. The underlying conditions explaining this includes the fact that commodities are no longer following equities as in the past as liquidity is being injected into stocks but not into the real economy. Merath later provided a useful overview of trends in demand and supply and prices of different commodities separately, including bulk commodities, energy, industrials, and agriculture. Jane Wood, Deputy Head of Commodity Trade Finance, UBS, provided a clear and detailed overview of the man types of financing for big and small traders, including the documentation and regulatory framework that each type of financing tends to involve. Overall, the challenges faced by banks when financing traders include the it follows to page 19 Tobias Merath (Credit Suisse) and Jane Wood (UBS) representing the bank sector www.ship2shore.it/english 19 Monday 20 May 2013 it follows from page 18 small margins, low equity, and shortterm nature of their operations, which are by definition transactional. Securitisation is also an added challenge (which, as noted by LCTA’s Thomas Patrick, larger traders are seeking to resolve through sophisticated insurance products). Some of the key points include the high level of tailoring that banks go through in their attempts to mitigate risks (hence managing risk by transaction). Another key point was the increased relevance of counterparty risk considerations in risk management strategies of banks. Thomas Patrick, President of Lugano Commodity Trading Association (LCTA) and Finance Director of Duferco International Trade Holdings, spoke on the role of traders as credit providers to the commodity sector. By focusing especially on steel, he firstly presented a global overview of market trends. Key was the positive position that China finds itself in relatively to market prices by being both a consumer (46% of world usage) and supplier of the commodity (hence only needing to operation financing. Bassi first of all noted the importance for traders to have credit policies in place, which is not always the case at present. In line with the observation made by Patrick, he also noted that traders tend to act more quickly than the banks in adjusting to changing risk scenarios by reviewing their credit policies regularly. In light of this fact, credit policies influence trading operations depending on how quickly and effectively traders react to changing market dynamics. Natalie Gupta Thomas Patrick (LCTA - Duferco) Jane Wood (UBS) buy when it thinks the price is right). The key argument emerging from the presentation was that the role of traders in financing transactions is increasing as banks have become more risk averse following the crisis. The key element that has allowed traders to take on more credit risk is securitisation through ‘Global or Whole Market Coverage Programs’ offered by large insurers. This increased role is comes alongside strengthened in-house risk control measures and the offering of solutions to trading partners such as raw material hedging and CMA sales. For this, centralized risk management systems which allow each component of risk evaluated through regular reporting and monitoring remain crucial. Gianluca Bassi, CFO at DP Trade, focused on the relationship between traders and banks. The presentation was based on the experience of a relatively smaller commodity trading firm, namely DP Trade, compared to the previous speaker. The key question was whether credit policies influence the trading Gianluca Bassi (DP Trade) ÇConsilium Consilium solutions for Navigation, Safety & Environmental protection Consilium Italy Srl. Marine & Safety Montagnana VP +39057168121, Genova +390105533900, Napoli +390815423122 [email protected], www.consilium.se www.ship2shore.it/english 20 EVENTS Cruising and yachting industries to meet in the cradle of shipping Posidonia Sea Tourism Forum will take place at the end of May in the Greek capital city While Fitch has upgraded Greek sovereign debt (from CCC to B-), yachting and cruising international communities are preparing to fly to Athens for Posidonia Sea Tourism Forum’s second edition. The exhibition, to be held in late May, this year has also become a CLIA Europe member. Given the importance of the event - which aims also to present the country’s touristic offer to potential investors, thus helping to lift up Greece’ economy - the Greek government will be well represented, Studio ASSociAto LegALe tributArio Via XX Settembre 42 - 16121 GenoVa tel. +39 010 537351 - FaX +39 010 53735500 [email protected] thanks to Minister of Shipping, Maritime Affairs and Aegean Kostis Moussouroulis, Minister of Tourism Olga Kefalogianni, and Deputy Minister of Development, Competitiveness, Infrastructure, Transport and Network Notis Mitarachi. The main industry companies - in addition to the ‘indigenous’ Louis Cruises - will attend as well: Royal Caribbean, Carnival Corporation, TUI Cruises, Costa Cruises, Celebrity Cruises, Silversea Cruises, Seabourn, and MYBA, ICOMIA Marinas Group, Fraser Yachts Worldwide, plus the Greek National Tourism Organisation. All of them will have to face a long list of issues, such as port and marina Monday 20 May 2013 privatisation, infrastructure and future development and prospects of the cruise and yachting sectors in Greece and the synergies that can be derived by intraregional cooperation with neighbouring destinations. Despite of the large turnover in the area, Theodore Vokos, Project Director of Posidonia Exhibitions said, the sector has still room for growth. “With 6 million passengers per year the Mediterranean is the world’s second largest cruising region, as well as a preferred yachting destination for hundreds of thousands of tourists from all over the world, making sea tourism an important economic growth vehicle for Greece and the entire region. The Eastern part of the region, which includes Greece, Turkey, Croatia, Albania, Montenegro and all the Black Sea countries, now attracts a third of the Med’s total cruise volume, bringing at least 2m visitors per year – or 9.2m port visits” he added, saying also that in monetary terms each passenger port visit is worth an average € 99, with 80% going to the wider local economy and 20% to the port, meaning that cruising benefits the local economies with over 1 billion euro annually. But many operators are looking at the emerging markets: some projections indicate that a 0.5% penetration of the Russian market alone would yield 700,000 cruise passengers annually – or 3.2m port visits – “a considerable addition to the current production of North American and European mature source markets” concluded Vokos. www.ship2shore.it/english 21 SUPPLIERS It’s Skövde the production heart of Volvo Penta The company, leader in marine engines, presented the latest novelties in its state-of-the-art Swedish plant Skövde, Sweden – As many as 73,000 marine engines of various types have been manufactured in 2012 by Volvo Penta in Skövde by means of almost completely automatised procedures through 8 assembling points and 24 flow lines. Nevertheless, this is not serial production, they say at the plant: every single engine of the D13 (89% of the overall output, production started in 2005) and D16 Renault Trucks – and for third parties’ components” says Gerard Torneman, Volvo Penta’s sales project manager. After the sale of its car manufacturing department, Volvo Penta focused on heavy and industrial vehicles, buses, and marine engines, as well as on logistics. Its plants are located in Skövde, Flen and Doping (Sweden), in Middletown, Charlotte and Hagerstown (USA), Curitiba (Brazil), (11%, started later on) is a self-standing item, with 1,500 variations, needing from 3 to 12 days for completion, according to complexity. Moreover, the production is fully integrated vertically, starting for the foundry inaugurated in 2010. In 2012 the plant manufactured 177,076 cylinder heads alongside all other engine components, involving the casting of 102,000 of raw material, “whereof 18% for the production of discs for brakes on behalf of Volvo Cars, as we work also for the department heavy vehicles – eg, Venissieux and Limoges (France), Leganès (Spain), and Hany, Oota and Kounosou (Japan). Marine engines are mainly manufactured in Sweden (20,000 units delivered in 2012), as well as engines for land use (73,207 units), with substantial output also in North America (42,993), France (39,008), Brazil (11,451) and Japan (7,736). Skövde is anyway the group’s most advanced plant after its full revamping, covering a 265,000 sqm area and employing 2,800 people (whereof 16% women) from 22 different countries. “If we take into account activities linked to Volvo Penta, a good deal of the 52,000 population partakes in our business. Thanks to the local administration’s far-sightedness we were able to invest substantially, and this turned out beneficial to dwellers” pinpoints Jens Holtinger, VP GTO PWT at the plant. During the visit to the test and training centre in Krossholmen, the company presented the range of pilot and coast guard boats, with test ‘drive’ on Pilot Boat 745 (equipped with 2 engines DH13MH) and on types PTA80 and Targa44 (equipped with new engines IPS900MC and IIPS600, respectively). The IPS series is “a revolution in marine engines, a new age for fast and patrol boats” claimed Lars Ljungqvist, senior vice president planning, product dev. & purchasing, boasting also a path-breaking piloting desk with a joystick helm (forbidden to photograph) and a propulsion system with the propeller at the forefront of the pods (from 2 to 4, according to boat type). The IPS pods are based on Volvo Penta engines (eg, the top one, IPS1050, is boosted by a D13 type with a twostage turbine). “The forward-facing, two-propellers (counter-screwing), 360°-turning pods IPS system allow a 30% cut in consumption and CO2 emissions, a 40% wider operative range and the halving of perceived noise and vibrations. The positioning of the propellers, well underneath the hull, allows them to operate effectively even during sharp changes of course and accelerations. As a consequence, top speed is increased by 20% while you control the boat by simply handling a joystick”. Antonio O. Ciampi Monday 20 May 2013 www.ship2shore.it/english 22 TOWAGE Monday 20 May 2013 Sanmar become centenary currently provides technical-nautical services to six Turkish ports; abroad, by means of joint ventures, it provides towage services to the ports of Varna (Bulgaria), Floro (Norway) and Brunsbüttel (Germany). As a shipyard it has, among its clients, many compatriots (including Arpas, Antmarin and the ports of Kusadasi, Antalya, Gulluk, Marmaris); to date, it had also Italian clients such as Rimorchiatori Sardi, Rimorchiatori Laziali, Fratelli Neri, Moby, Eureco and Corima. The Turkish shipyard has built its hundredth tug and is completing the first LNG-powered units The Turkish company Sanmar – which works both as a tugs and pilot boats shipyard and as towage and pilotage services provider - announced the completion of its 100th tug and is now finishing the construction of the first two LNG powered tugs in the world whose delivery is expected within the third quarter of 2013. Sanmar 100th unit is an ASD (Azimuth Stern Drive) tug designed by Robert Allan Ltd and represents an update of its RAmparts 2500 class (renamed 2400SX Sanmar eXclusive, while the Turkish yard is naming it Bogacay). This first unit, to be called Zeycan Y, will serve in Gemport, in Turkey. It develops 70 tonnes bollard pull and will make use of a pair of powerful 1765kW Caterpillar type 3512C main diesels turning Rolls-Royce model US 205FP Z-drives (Bogacay class, however, will feature two powerful variants to give bollard pulls of 60 or 70 tonnes depending on the propulsion machinery size). It has been designed to meet the requirements of the American Bureau of Shipping and is fitted with a Fi-Fi (Fire Fighting) 1-2 system. The most interesting news for Sanmar, however, has yet to come to light. Its two LNG powered escort tugs are in fact still under construction at company’s yard in Tuzla Bay and, as already mentioned, will be delivered by the third quarter of 2013 to Bukser og Berging, which will lease them under a time charter agreement to Statoil ASA and gas operator Gassco, for operations off the coast of Norway. “Cooperation between the shipyard team, the owners and designers Bukser og Berging, the classification society DNV and the Norwegian Maritime Authority is proceeding well” commented Sanmar’s Board Member, Ali Gürün, also reporting that some 90 per cent of the steel construction was already finished, that the process of installing the LNG tanks and engines has been completed successfully and that the rest of the outfitting was continuing as planned. The tugs will be equipped with an LNG system designed by AGA Cryo and integrated with the Rolls-Royce propulsion system; as the system has got full gas redundancy it does not require a diesel back up. The vessels, which will also be equipped with two Rolls-Royce azimuthing Z-drives, will measure 38m x 14.5m, have accommodation for 5 persons and achieve a static bollard pull of 70 tonnes; they will comply with Tier III and will be able to get a significant reduction in emissions (92% reduced NOx emission, 17% reduced GHG emission, 98-100% reduced SOx emission, 98% reduced particulates) Sanmar, incorporated in 1976, Ship2Shore Direttore Responsabile Angelo Scorza Editore ESA Srl Via Assarotti 38/16 16122 Genova P.I./C.F. 01477140998 Sede operativa Via Felice Romani 8/2 16122 Genova Tel. +39 010 2517945 Fax +39 010 8687478 e-mail: [email protected] Iscriz. Trib. di Genova n. 19/2004 CCIAA di Genova, R.E.A. 412277 Cap. Soc. € 30.000 i.v. www.ship2shore.it