Thursday, April 18, 2024

Saudi Arabia nears $1bn deal for stake in Barrick’s Reko Diq

MINING.COM Editor | April 18, 2024 |

Reko Diq mine camp. (Image: Barrick’s presentation | July 2022.)

Saudi Arabia is said to be close to reaching a deal to acquire a minority stake in Pakistan’s $7 billion Reko Diq copper and gold mine, controlled by Barrick Gold (TSX:ABX)(NYSE:GOLD).

According to Bloomberg, the kingdom’s investment fund Manara Minerals intends to invest close to $1 billion in the project and it may announce a preliminary agreement on the transaction terms within weeks.

The Saudi company might gradually raise its stake in Reko Diq, in which the government of Pakistan has a 25% interest and the province of Balochistan has the remaining 25%.

Discussions are at a very early stage and could still collapse or be postponed, sources close to the matter told Bloomberg.

Barrick chief executive Mark Bristow has said in recent interviews that he doesn’t want to “dilute” the company’s stake in the project, but “would not mind” if Saudi Arabia’s Public Investment Fund (PIF) wants to buy out the equity of the Pakistan government. Pakistan has not publicly stated whether it is considering selling its part in the project.

Barrick, the world’s No.2 gold producer, believes that the proposed mine is one of the world’s largest underdeveloped copper-gold prospects.

The project, in the Balochistan region bordering Afghanistan and Iran, has the capacity to produce 200,000 tonnes of copper and 250,000 ounces of gold annually year for more than 50 years. Production is expected to begin in 2028.

Manara was established as part of Saudi Arabia’s efforts to diversify its economy from oil, tapping its vast resources of phosphate, gold, copper and bauxite while buying minority stakes of up to 20% in assets overseas. It is a joint venture between state-owned miner Ma’aden and the PIF.

Manara’s first major venture overseas was a deal inked with Vale (NYSE: VALE) last July to become a 10% shareholder in the Brazilian miner’s $26 billion copper and nickel spin-off Vale Base Metals.

(With files from Bloomberg and Reuters)

Rio Tinto, Saudi Arabia said to vie for stake in First Quantum mines

Bloomberg News | April 18, 2024 |

First Quantum’s 80%-owned Kansanshi mine in Zambia is Africa’s largest copper operation. (Image courtesy of Liam Richer | YouTube)

Rio Tinto Group and Saudi Arabia’s state-backed Manara Minerals Investment Co. are among suitors considering bids for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, according to people familiar with the matter.

Japanese trading houses Mitsui & Co. and Sumitomo Corp. have also been studying the assets, the people said, asking not to be identified as the talks are private. First Quantum is looking to sell a minority stake in its Sentinel and Kansanshi mines in Zambia and is seeking first-round bids in the coming weeks, they said.

The assets could also attract interest from Chinese companies such as Zijin Mining Group Co. and Jiangxi Copper Co., which is First Quantum’s second-biggest shareholder, the people said. The process is in the early stages and there’s no certainty the parties will proceed with bids.

Zambia accounted for about half of First Quantum’s copper output and revenue last year, and delivered more than $450 million in operating profit.

First Quantum is selling a stake in its Zambian assets after it was ordered to close its flagship copper mine in Panama last year following public protests. That left the company scrambling to refinance the debt it took on to build the mine. The firm sold about $1 billion in stock and raised $1.6 billion from a notes offering earlier this year and has said it may look at divesting smaller mining assets.

A spokesperson for Sumitomo said that the company continues to explore opportunities to acquire stakes in copper operations, declining to comment on specific deals. Spokespeople for First Quantum, Rio, Mitsui and Jiangxi Copper declined to comment. Representatives for Manara and Zijin Mining couldn’t immediately be reached.

The copper mines are attracting interest from a range of investors because demand for the metal is expected to soar in coming years. Copper is crucial for the production of electric vehicles and renewable energy infrastructure, while there is a lack of new mines being built.

And there are also relatively few good assets to buy. Some of the mines available in the central African copper belt, which stretches through Zambia and the Democratic Republic of Congo, aren’t appealing to buyers, and major firms are unwilling to sell stakes in their most important developments.

That means companies that have previously avoided taking stakes in mines in Africa — such as Japanese trading houses — have started to become more open to the possibility.

Rio, the world’s second-largest mining company, is generally reluctant to be a non-operator and has also avoided the central Africa region. The company’s copper head said at a recent conference that he sees much more value in building mines rather than buying existing assets. Still, the company has some ties with First Quantum and sold it a majority stake in a development project in Peru last year.

For Saudi Arabia, the deal would be another major coup following its purchase of a stake in Vale SA’s base metals unit for $2.6 billion. The kingdom is looking to secure supplies of metals for its industrial ambitions as it attempts to diversify its economy away from oil.

(By Dinesh Nair, Vinicy Chan and Archie Hunter)

Shipbuilder Hyundai Enters European Wind Market with Agreement in Scotland

offshore wind farm — Hyundai is entered the European offshore wind market with an agreement in Scotland (file photo)

South Korean shipbuilder HD Hyundai Heavy Industries is entering the European offshore wind energy market as it looking for opportunities to leverage its expertise and expand its presence in offshore energy. The company signed an agreement with two of Scotland’s economic development organizations to jointly pursue opportunities in the emerging floating offshore wind power sector.

Hyundai will be working with Scottish Enterprise and Highland & Island Enterprise cooperating on the development of new offshore wind power projects in Scotland. The organizations agreed to assist in the search for financial support in Scotland and to secure human and material networks for potential suppliers, manufacturing facilities, and investors.

They point to the strong anticipated growth in the next phase of offshore wind energy development and the challenges of moving from fixed bottom to floating structure. The UK has been at the forefront of the development of offshore renewable energy. The UK government has committed to expanding its offshore wind energy sector from its current capacity of approximately 14 GW to 50 GW by 2030. Worldwide wind capacity is expected to jump from 63 GW to 477 GW by 2032 according to the Global Wind Energy Council.

Hyundai says the development of floating wind structures requires design and production that takes into account the harsh marine environment. They highlight their expertise in offshore energy and first efforts in Korea to develop the sector while saying they have the capacity to immediately begin manufacturing large structures without changes or investment within the shipyard.

Under the new agreement, Hyundai working with the economic development organizations plans to pursue floating offshore wind power projects in Scotland. The company will leverage its know-how in designing and manufacturing floating offshore structures and support supply chain optimization efforts.

The Scottish authorities commented that the effort continues their strong progress in the offshore energy sector. Scotland’s government has announced plans for a strategic investment of up to £500 million ($622 million) over five years focusing on ports, manufacturing, and assembly for the next phase of the offshore wind sector. They highlight that Sumitomo recently announced plans for a £350 million ($435 million) investment in a cable factory near Inverness.

The efforts to develop the offshore wind market come as the shipbuilder has had a strong start to 2024 but projects dramatically lower orders. The company cut its forecast for 2024 by nearly 40 percent forecasting orders of approximately $16 billion down from approximately $26 billion in 2023.

After the first 100 days in 2024, however, the company reports overall it has reached nearly three-quarters of its target for the year. HD Korea Shipbuilding & Offshore Engineering (KSOE), the shipbuilding parent company, reports it three yards booked orders for 86 vessels valued at nearly $10 billion. Hyundai Samho has exceeded its annual target with Hyundai Heavy Industries having received half its annual target.

With competition increasing and orders slowing in shipbuilding, HD Hyundai is looking for new market opportunities. Offshore wind fabrication would leverage its capabilities.

HD Hyundai Partners With American Defense Contractor on Autonomous Ships

Anduril Dive LD — Anduril's Dive-LD autonomous underwater vehicle (Courtesy Anduril)

HD Hyundai, the largest Korean shipbuilder, has decided to join forces with American defense contractor Anduril on designing advanced naval vessels for U.S. and South Korean customers.

“With the rise of autonomous naval systems as a significant component for future maritime defense, we expect to pioneer the market with our warship-building capacity and leading defense technology combined," said Won-ho Joo, COO of naval shipbuilding at HD Hyundai.

Anduril has its roots in the military UAV space, including advanced drone fighters, but it has expanded its portfolio to include autonomous underwater vehicles, maritime domain awareness, and an overarching autonomous command and control system called Lattice OS. Its specialty is in low-cost, mass-produced, attritable autonomous systems - checking all the boxes for the Pentagon's rush to procure unmanned equipment at scale.

The partnership with HD Hyundai mirrors that low-cost, high-volume, high-autonomy ethos, and offers an answer to the Navy's most serious challenges: limited yard capacity and limited manpower. The announcement follows just a month after Navy Secretary Carlos Del Toro visited HD Hyundai and invited the firm's executives to invest in American shipbuilding.

The partnership will also look at ways that Hyundai can help out with the manufacturing side of Anduril's maritime product line, including future maritime systems.

“Together, our companies will define a new maritime arsenal of democracy—one that both restores naval capacity through modern shipbuilding and mass manufacturing practices, while also enhancing naval capability," said Christian Brose, Chief Strategy Officer at Anduril.

Ten Years Later, Survivors and Families Remember the Sewol Tragedy

On Tuesday, relatives of the lost passengers of the ferry Sewol gathered at the city of Ansan to commemorate the 10th anniversary of the vessel's disastrous sinking, which claimed the lives of more than 260 children and 40 adults in 2014.

On April 16, 2014, the ferry Sewol was under way to the southern resort island of Jeju, off the peninsula's southwestern tip. Most of the passengers were high school students and their teachers on a school field trip. The vessel suddenly capsized during a turn, and more than 300 people were trapped inside the ferry and drowned. Survivors later testified that the crew had told them to stay in their cabins to wait for a rescue - and that the master and crew then departed in lifeboats. Only 172 people abandoned ship on their own initiative and survived.

In the aftermath, the Korean government hired Shanghai Salvage to conduct the deepest refloat ever attempted. The entirety of the ferry was recovered and transported to shore in one piece, partly for investigative purposes and partly to attempt to recover all human remains.

The ensuing investigation became mired in political controversy. Families of the victims alleged that then-South Korean president Park Geun-hye's government attempted to interfere with the inquiry by withholding documents and delaying the salvage project, and the scandal played a role in Park's impeachment and removal from office. Her successor, President Moon Jae-in, opened a second independent inquiry at the families' request.

The investigation found that the ship's top deck level had been augmented with a new compartment, increasing mass high above the waterline. After these modifications, class reduced Sewol's deadweight to about 990 tonnes - but she was carrying 2,140 tonnes of cargo on the day of the casualty, not all of it properly secured. Prosecutors also found that the operator had spent a total of two dollars on safety training for the crew in the prior year, and the sole expenditure was for a paper certificate.

The captain of the Sewol was sentenced to 36 years in prison for "murder through willful negligence." Other crewmembers received terms of up to 30 years, and the shipowner was sentenced to 10 years. Criminal trials related to the sinking continued up through 2023.

After ten years and two formal investigations, families of the lost students are still pressing for more answers and accountability. "Our demand is very simple. Accept responsibility, apologize and promise disasters like this won't ever happen again," advocacy group leader Park Seung-ryul told Reuters.

“We need to do serious soul-searching about why we could not find the truth and whether the current system, which failed to punish those responsible in a way acceptable to the people, is truly righteous," said Song Doo-hwan, chairman of the National Human Rights Commission of Korea, in a statement Tuesday.

Families and friends of the victims marked the 10-year anniversary of the sinking at locations around Korea this week, and several dozen boarded a Korea Coast Guard vessel to visit the wreck site, which is permanently marked with a buoy. At the main commemorative ceremony in Ansan, two top ministers and members of most of Korea's political parties were present; President Yoon Suk Yeol could not join, but offered remarks on the occasion from Seoul.

Turkish NGO With a Murky Past Acquires a Fleet for Gaza Aid Deliveries

The IHH Humanitarian Relief Foundation, a Turkish NGO with a controversial past, has decided to acquire three ships and launch a relief convoy to Gaza.

IHH currently operates relief voyages from Turkey to Egypt for cross-border transport into Gaza, but this new mission is advertised as an all-water route. It would be the second time that the conservative Islamic group has tried to transit through the Israeli naval blockade around Gaza - and the first time ended in violence.

IHH has acquired three vessels for its "Freedom Flotilla," reflagged them and changed their names. It is planning to depart for Gaza by the end of this month with the freighter Anadolu (ex name Dalya H), passenger vessel Vicdan (ex name The Majestic), and ro/pax ferry Akdeniz (ex name Prince). The NGO has launched a fundraising appeal to help pay for the vessels and their cargo.

The amount of aid cargo that the passenger vessels will be able to deliver is unclear: Gaza has no port infrastructure of its own for merchant ships, and any seaborne cargo must be lightered onto shallow-draft barges or workboats for delivery. It is also unknown whether Israel would allow IHH - which Israel considers a terrorist organization - to enter Gaza's waters.

IHH has tried this once before, without permission. In 2010, it organized a similar convoy to Gaza with six ships and hundreds of pro-Palestinian activists, intending to run the Israeli blockade and generate publicity. On the lead ship, the Mavi Marmara, a group of about 40 IHH members boarded in Istanbul without a security check, according to a post-incident investigation by a UN panel. This "hardcore" group intended to resist Israeli intervention in the mission, by force if necessary.

When Israeli commandos boarded the Mavi Marmara off Gaza by helicopter, the boarding team was assaulted with iron bars, wooden poles, chains, and slingshots; several commandos were relieved of their weapons, seven were injured, and two were shot (non-fatally). When the dust cleared, nine activists were dead and dozens more were injured with gunshot wounds. Turkey accused Israel of excessive use of force, and diplomatic relations soured; the Israeli blockade remained in place.

IHH (?nsani Yard?m Vakf?) is a member of Ittilaf al-Kheir, an Islamic charity organization that backs the terrorist group Hamas. The IHH has support from the Turkish government, and also allegedly has ties to Turkish intelligence; in decades past, it has been accused of assisting Al Qaeda, trafficking arms in Libya, funneling funds to Hamas, and serving as an intermediary for Turkish interests in the Syrian Civil War. IHH denies any ties to terrorism and describes itself as a purely humanitarian organization, with interests in search and rescue and aid activities.

The only other maritime aid operator in Gaza, World Central Kitchen, suspended its work in the territory after Israeli airstrikes killed seven of its employees. The U.S. government is currently working on setting up an alternative maritime aid corridor with more substantial military infrastructure.

MSC Works to Release Crew and Cargo from Ship Seized by Iran

MSC containership — MSC is working for the release of the crew and cargo from the seized containership (MSC)

Diplomatic and commercial efforts are underway to gain the freedom of the crew from the MSC Aries containership that Iran seized on Saturday, April 13 as it was nearing the Strait of Hormuz. Iran has come under pressure from Portugal where the ship is registered as well as India, Pakistan, the Philippines, and Russia, all of which have crewmembers aboard the vessel.

MSC Mediterranean Shipping Company released a statement today reporting that all the crewmembers are safe while reporting that “discussions with the Iranian authorities are in progress to secure their earliest release.”

Media reports in Pakistan indicate that Iran has agreed to release two of the country’s citizens among the crew as Iran works to improve relations with the country. Indications are the Pakistanis are planning to host a visit by the Iranians with the reports saying the crew release was designed to not interfere with those efforts.

At the same time, media in India is reporting that the crewmembers were permitted to make calls home on Monday night. It was the first direct contact with the crew from the vessel. India had demanded access to its 17 citizens aboard the vessel which is reported to have a total crew of 25.

The progress for the crew came as the Islamic Republic News Agency (IRNA) quoted Iran’s Deputy President for Legal Affairs Mohammad Dehghan as describing the seizure of the container ship as a “retaliatory move.” He spoke about the MSC Aries during a cabinet session on Wednesday in Tehran according to IRNA.

Portugal reported that its foreign office had summoned the Iranian ambassador and demanded the immediate release of the crew and the ship. They said they were awaiting a formal response from Iran after reporting they had received conflicting messages from the Iranians over the incident.

The crew is reportedly telling family members that they are being well treated and it was indicated that they are not under arrest. They said food is being provided and they are continuing their work aboard the vessel which is anchored offshore. TankerTrackers.com located the ship in the Khuran Straits near three seized oil tankers. Their analysts told CNBC that the containership could be held indefinitely.

MSC said in its statement “We are also working with the Iranian authorities to have the cargo discharged.” The carrier said it is continuing uninterrupted and regular service on its routes in the region.

Bloomberg reports that there are 50 containers aboard with contents classified as hazardous but that most of the cargo appeared to be ordinary industrial goods with possibly some chemicals. They are reporting most of the containers were bound for Turkey, Belgium, and Italy, but that 90 were destined for the United States.

Hapag Wins Tender from Leading Brands to Provide Biomethane Shipping

Hapag-Lloyd won the first tender from a collective of major brands to provide low-emission shipping services

In a first-of-its-kind initiative designed to demonstrate the potential of collective efforts to drive the decarbonization of shipping, a group of leading consumer and manufacturing companies banded together to contract for shipper services from Singapore to Rotterdam. The Zero Emission Maritime Buyers Alliance (ZEMBA) reports Hapag-Lloyd won its first tender for ocean shipping.

Under the terms of the agreement, well-known brands including Amazon, Patagonia, Bauhaus, New Balance, Nike, REI, and others agreed to purchase over one billion TEU miles on the route between Singapore and Rotterdam in 2025 and 2026. Hapag as the winner of the tender has agreed to provide an independently certified and exclusive waste-based biomethane service.

According to the organizers, the project will achieve at least a 90 percent reduction in greenhouse gases on a lifecycle basis relative to fossil fuel-powered shipping. ZEMBA expects to avoid at least 82,000 metric tonnes of CO2 emissions over the two years of the agreement.

ZEMBA and Hapag will utilize a book and claim system to facilitate verification and credible and appropriate allocation of the environmental attributes of the biomethane shipping service. The program highlights that ZEMBA members and Hapag are working with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping and RMI on the development of a best-in-class, nonprofit maritime book and claim system.

“Our collective procurement approach is working, and we look forward to continuing to push the boundaries of what’s technically and economically feasible in subsequent tenders, with a strong focus on maritime e-fuels,” said Ingrid Irigoyen, President and CEO of ZEMBA. “Through this first set of deals, ZEMBA members are reducing emissions in the near term, which is critical.”

Hapag CEO Rolf Habben Jansen points to this project as a demonstration of the partnership required to support the shipping industry’s efforts for decarbonization. Hapag this week as part of its 2030 strategy reiterated a goal of net-zero ship operations by 2045 with Jansen saying today that partnerships such as ZEMBA will help to push the boundaries of what is possible.

The consortium made up of many of the largest and best-known consumer brands launched a request for proposals for zero-emission shipping services in September 2023 six months after the project was launched. The RFP provided for 600,000 TEU calling for sufficient capacity from the carriers to cover aggregate demand for 6,000 nautical miles over three years. ZEMBA said it would negotiate a “green premium” for the aggregated demand of its members. The green premium accounted for the added cost of operating a vessel using zero-emission fuels.

Based on forecasts that e-fuels and nonbiological fuels will enter the market by 2027, ZEMBA decided to revise the first tender to focus on 2025 and 2026. A second tender is planned for later in 2024 focusing on e-fuel. ZEMBA reports they are currently working with participants across the maritime value chain to develop e-fuel infrastructure, bunkering, ship design, and other details.

They believe the ZEMBA’s tender process will also provide insights to inform the development of a global maritime decarbonization policy. The Aspen Institute will work with cargo owners to convey lessons learned from ZEMBA’s tender process to support the International Maritime Organization’s development of lifecycle assessment guidelines. The group worked with organizations including Lloyd’s Register Maritime Decarbonization Hub to develop the tender program.

ONE Joins Trend Towards Optional Low-Carbon Container Fees

Japanese ocean carrier ONE has added a low-carbon option for shippers who are willing to spend to reduce their emissions. Rather than selling carbon offsets for tree planting or conservation, the company is offering its customers the opportunity to pay for biofuel for the carrier's fleet, in an amount equivalent to the energy needed to move the shipment.

ONE is buying regulation-compliant biofuels for a number of its ships, and customers can reduce their Scope 3 (supply chain) emissions by paying for the fuel. Customers receive a certification of the CO2-equivalent savings, independently verified to ensure compliance. ClassNK has validated the process and methodology behind the credits.

The fuel product is a second-generation biofuel made from used cooking oil, which reduces well-to-wake emissions by more than 80 percent when compared to VLSFO. It meets the EU's definition of a waste stream, and does not require human food for production (like virgin soy-based biofuels).

"We are fully committed to our target in achieving net-zero GHG emissions by 2050," said Gilberto Santos, Senior Vice President, Global Commercial Service Management at ONE. "The launch of ONE LEAF+ underscores our commitment to sustainability and provides our customers with the tools and transparency they need."

Like many carriers, ONE aims to meet the IMO target of net-zero emissions by 2050, and views the opt-in policy for low-carbon biofuel as a step towards that goal. Other carriers offer similar programs or partnerships: UECC has piloted biofuel voyages with BMW, Maersk Supply Service offers optional biofuel credits for the offshore sector, and MSC, Maersk, and Hapag all offer an optional service for customers to buy low-carbon fuel. With Maersk's recent dual-fuel vessel investments, its ECO Delivery option now includes methanol-fueled shipping in addition to biofuel.

U.S. Increases Grant Availability to $316M to Modernize Ferry Services

The U.S. Department of Transportation's Federal Transit Administration (FTA) announced today the availability of $316 million to support and modernize passenger ferry service in communities across the country. With additional money from the Bipartisan Infrastructure Law, the 2024 initiative will increase by more than 40 percent federal support for ferry service improvements.

"I have seen firsthand how, for many Americans in many different parts of the country, ferries are the best and sometimes only way to get where they need to go," said U.S. Transportation Secretary Pete Buttigieg. He estimated that across the country, there are approximately three million ferry riders each month, utilizing the transit services to get to work, school, healthcare appointments, and more.

The funding from the Infrastructure Law will be added to the Federal Transit Administration’s longstanding Passenger Ferry Program. The 2024 Notice of Funding Opportunity announced today breaks down the availability into three tranches with a June 17, 2024, deadline for applications.

The Passenger Ferry Program will support capital projects to buy, replace, or modernize passenger ferries, terminals, and related equipment in urban areas. For Fiscal Year (FY) 2024, $51 million is available.

The Electric or Low Emitting Ferry Program will provide federal support to transit agencies to buy ferry vessels that reduce emissions by using alternative fuels or onboard energy storage systems. For FY 2024, $49 million is available.

The Ferry Service for Rural Communities Program will provide federal support to ferry services in rural areas, including capital, planning, and operating costs. For FY 2024, $216 million is available.

"Passenger ferries provide critical and cost-effective travel for people throughout the United States, but many ferry agencies are not able to maintain all of their vessels in a state of good repair and make necessary investments in safety," said FTA Acting Administrator Veronica Vanterpool. "FTA is pleased to provide federal support to help modernize and expand how people travel by water while reducing greenhouse gas emissions."

Past grants have helped transit authorities upgrade ferry service across the country, from Alaska to Maine, to Georgia and California. Last year, the largest grants went to the Alaska Department of Transportation & Public Facilities for the Alaska Marine Highway System. Included in it were funds for a new vessel to replace a nearly 60-year-old ferry.

Other grants in 2023 included the American Samoa Department of Public Works to build two new low-emission ferries while in San Francisco funds will be used for a battery charging system at two terminus points. The Michigan Department of Transportation also received funds for a new ferry and to repair a dock. In total, over a dozen grants were awarded valued at over $220 million.

The FTA has been administering the program for more than a decade to assist local ferry transit operations.

Emissions Milestones for ERMA FIRST

Once best known for its leading position as a ballast water treatment system manufacturer, ERMA FIRST now oversees a portfolio of sustainable marine solutions, including technologies that help ship operators to cut emissions while the need to burn fossil fuels continues.

ERMA FIRST Co-Founder & Managing Director, Konstantinos Stampedakis stresses that the Greek company is intensely focused on helping ship owners decarbonize their operations over the next 15 to 20 years with a portfolio of sustainable future-proof solutions.

The company has been developing a range of new energy-saving devices, such as a unique modular propeller boss cap fin to cut ship fuel use, as well as alternative maritime power to connect them to shore-based electricity in ports and onboard carbon capture and storage solutions to capture their emissions at sea.

Long-term view

An offshoot of longstanding marine technology developer Environmental Protection Engineering (EPE), which has been in operation since 1977, ERMA FIRST was set up in 2009. Today, it retains its commitment to provide solutions to meet shipping’s full ballast water treatment systems needs, at a time when most competitors are quitting the market.

“We’re fully certified by IMO, USCG, China and Korea, and the combination of flexibility on installation and highly competitive OPEX has established ERMA FIRST as one of the leading BWTS makers worldwide, with systems on 3,800 vessels by the end of 2024,” said Mr Stampedakis. “Our commitment is to offer unparalleled long-term cooperation and stellar support to our BWTS customers.”

The commitment to collaborating with owner is characteristic of the ERMA FIRST position on energy saving devices and emissions, added Mr Stampedakis.

“We know alternative green fuels will be the eventual solution to maritime decarbonisation, but for the next 15 to 20 years the majority of vessels will continue to burn fossil fuels while facing increasing challenges to cut emissions from regulations such as the CII, EEXI and EU ETS.

“Decarbonisation targets for 2030, 2040 and finally 2050 are eminently achievable if all stakeholders act sooner rather than later. We passionately believe there is a lot of room for technologies to deliver operational improvements that reduce fuel consumption and vessel emissions.”

Konstantinos Stampedakis is clear that despite slow progress in ports setting up cold ironing facilities to connect ships to shoreside mains electricity or offload captured and stored carbon, owners need to start investing in existing technologies that can help reach approaching decarbonisation targets.

When the cap fits

An immediate step owners can take to cut fuel use and emissions by 2% to 3% is to fit a boss cap fin (BCF). Installed at the hub of a ship’s propeller a BCF effectively utilizes water swirl, while its fins catch and absorb the rotating water force. Together they reduce energy loss by weakening the propeller hub vortex, boosting thrust and improving propulsion efficiency.

But there are hundreds of different propeller and ship types and sizes, making it prohibitively expensive to design bespoke BCFs for individual vessels and limiting the effectiveness of off-the-shelf models.

The innovative modular design behind the ERMA FIRST FLEXCAP overcomes this issue. At least 22 different models are possible from combining various fins, caps and flanges. The modular design ensures a low cost that means a return on investment is achievable within less than 12 months.

“We can adjust the angle of the fins, or the selection of the cap based on a specific vessel’s needs,” said Mr Stampedakis, “giving a bespoke propeller cap at the cost of an off-the-shelf model.”

Broader perspective

ERMA FIRST’s efforts to help owners use innovative but practical and marinized solutions to achieve looming targets for ship decarbonisation cover operations in port and at sea.

Emissions restrictions in ports are ramping up fast, with selected Californian ports already requiring 80% of berthed container, reefer and cruise ships’ power to come from a shore-based source. The rules are extending to include car carriers and tankers, respectively from 2025 and 2027.

In Europe, the ‘Fit for 55’ legislative package contains proposals for ports to have cold ironing infrastructure in place by 1 January 2030 for passenger and container ships of over 5,000gt. China already requires ships on international voyages to use the equipment if it is installed.

ERMA FIRST BLUE CONNECT is an alternative maritime power system which enables vessels to connect to a port’s electrical grid to run onboard services, systems and equipment. Meeting all latest international standards for cabling and connections, the solution means a ship can switch off its diesel generators, in order to reduce both emissions and noise while in port.

BLUE CONNECT has received approval in principle (AiP) from leading classification society Bureau Veritas and is also recognized as an Energy Saving Device by DNV. The first installation of BLUE CONNECT will be made this Fall, while ERMA FIRST has received orders for six to eight units to be delivered by the end of the year.

At sea, the focus has been on onboard carbon capture and storage (OCCS) as a method of reducing ship emissions, with two versions of the same system – named ERMA FIRST CARBON FIT - under development. .

An Amine Absorption version is aimed at deepsea ships with the system capturing CO2 through well-established technology which absorbs CO2 from the flue gas and stores it in a liquid state. This reduces the volume for long distance voyages. In this case, the technology has secured AiP from Lloyd’s Register and DNV.

A simpler Calcium Hydroxide-based version is aimed at shortsea vessels. In this case, the organic alkali absorbs CO2 from flue gas in a specially designed reactor and dehydrated calcium carbonate slurry is stored onboard until its disposal at authorised facilities.

ERMA FIRST is aiming to install pilot units in August 2024, with commercial sales following from the second half of 2025, with clients indicating intent to place orders.

Under normal operating conditions OCCS systems are expected to cut emissions by 15% to 30%, said Mr Stampedakis.

Technical answers

The potential offered unmistakable evidence that technology could play a massive role in helping ship owners reach their environmental targets, Konstantinos Stampedakis emphasised. Ballast water treatment remains a major focus of ERMA FIRST’s sustainability drive, with Mr Stampedakis seeing the potential for stricter regulations ahead that will require continuous investment in systems development.

Whatever the requirement, ERMA FIRST’s sustainable solutions have been built through a blend of in-house experience and new expertise. “It is about creating and supporting a portfolio of products to help owners improve vessel performance and extend a ship’s life into the lower carbon future,” Konstantinos Stampedakis concluded.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

Oregon’s Port of Portland to Suspend Container Operations as Losses Grow

Portland Oregon container terminal — Portland will suspend container operations due to mounting financial losses (file photo)

Oregon’s only ocean seaport, the Port of Portland, informed shippers yesterday that it plans to suspend container operations as of October 1. Like many smaller, regional ports, volumes increased during the pandemic as they provided an alternative to the congested major seaports but as the industry returned to normal volumes, Portland has seen its financial losses grow.

Port executive Keith Leavitt wrote to shippers saying they had decided to suspend the operation after negotiations with a potential third-party operator collapsed last week. He said they had not expected this outcome but without the prospects of an operator, mounting financial losses, and the lack of financial support from the state, they needed to suspend container operations. The port will continue to handle its RoRo car and vehicle operations as well as break bulk and heavy cargo.

The port cited its fixed costs saying that it had made it difficult to expand the container service and more costly for shippers using the port. They had hoped to have a larger operator that could spread the costs over broader operations. They said while volumes had steadily increased since 2019, the port has lost more than $30 million from the container operations over the past three years, including a projected $14 million shortfall this year.

While Terminal 6 has berths for five vessels and seven container cranes, including four Panamax cranes, port officials acknowledged the facility “faces a number of unique challenges.” It is more than 100 miles from the ocean and the Columbia River has limited depth to accommodate the largest vessels. In addition, they said it is a relatively small consumer market and they were further hurt by the loss of a rail service partner BNSF that had provided a connection to Seattle and Tacoma.

Suspending the container operation will be especially difficult they said for the agricultural and seafood sectors which use the port. They will have to truck goods through other ports, raising costs. Container operations also supported as many as 1,500 jobs in the region.

As late as last month, port executives were holding out hope that they could maintain the container operation. They had asked the state for $10 million in support but lowered the request to $8 million after meeting with carriers who committed to helping with the operation. The goal however was a long-term lease with a third-party terminal operator.

It is not the first time the port has had problems with its container operations. In 2010, it made a deal with ICTSI to operate the container terminal but the company became embroiled in a labor dispute that dragged on for years. The labor slowdown began in 2012 and by 2015 carriers were leaving the port. ICTSI pulled out of Portland in 2017. The International Longshore and Warehouse Union (ILWU) filed for bankruptcy in 2023 due to the dispute but finally reached a settlement agreement with ICTSI in 2024.

The port became its own manager for container operations. In 2020, they marked the return of container service including an agreement with SM Line.

Lawmakers failed to include the financial support in the state’s new budget but left open the possibility of future discussions. Port officials said they were still looking for future alternatives but currently, they do not have the funding necessary to maintain the operations.

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