Tuesday, August 06, 2024

SENEGAL

Endeavour production target at risk as workers embark on strike

Bloomberg News | August 2, 2024 |

Conveyors at the Sabodala gold mine in Senegal. Credit: Teranga Gold

Workers at Endeavour Mining Plc’s Sabodala-Massawa mine in Senegal started a strike on Thursday that could hamper the company’s ability to reach annual production target.

The work stoppage, which comes following the arrival of new equipment at the project, risks having a serious impact on gold production in “the second trimester of 2024,” according to an internal memo seen by Bloomberg.

The reason workers laid down their tools was not immediately known. A spokeswoman for the company declined to comment when she was contacted by phone.

“Even if this strike was short-lived, the shutdown of this plant would affect the equipment” and “it would be months before we could hope for a return to normal activity,” the memo said.

Endeavour was on track to achieve its full-year guidance of between 1.13 million ounces and 1.27 million ounces following an expansion of the site, the company said in April.

(By Katarina Höije and Momar Niang)

Endeavour’s ex-CEO paid miner $1.35 million settlement after firing

Bloomberg News | August 5, 2024

Endeavour Mining’s former CEO Sébastien de Montessus. (Image by Endeavour Mining).

Endeavour Mining Plc said its former chief executive officer paid the firm $1.35 million in a settlement, months after the gold miner fired him for alleged serious misconduct.

The London-listed company removed Sebastien de Montessus in January amid a probe into an “irregular” payment of $5.9 million made at the instruction of the then-CEO. Endeavour has since finished the investigation, saying in March it had also identified two previous transfers — totaling $15 million — to the same entity in the United Arab Emirates but was unable to determine the ultimate beneficiary

A spokesperson for the former CEO declined to comment about the settlement. De Montessus has previously said he never personally benefited from the transactions.

Endeavour’s probe into former CEO finds $15m in “disguised” payments

De Montessus paid the sum to Endeavour last month after the two parties concluded a settlement agreement, the company said in a report published July 31.

An additional $26.4 million has already been forfeited and clawed back, Endeavour said in last week’s report. The company in January outlined plans to claw back a total of $29.1 million in remuneration, including $15.6 million in unvested and forfeited share awards.

Endeavour has previously said de Montessus signed a “personal investment agreement” for at least $500,000 in 2019 with a firm that holds a stake in a consortium which went on to buy a small mine from Endeavour in 2022. The investigation was unable to “ascertain to what extent” de Montessus “directly profited from this relationship,” the company said in March.

De Montessus previously said payments to the UAE entity were advances to an established contractor of the miner and for essential security equipment, adding that Endeavour didn’t suffer any loss from the arrangement. He also has said that the $500,000 investment was never made.

Endeavour transformed during de Montessus’ seven-year stint at the helm through a spate of dealmaking and mine-building that replaced small and high-cost operations with newer projects. The company owns gold mines in West Africa with assets across Senegal, Ivory Coast and Burkina Faso.

(By William Clowes)

NO SEA BED MINING

A fraught election just reshaped the next steps for deep sea mining

Bloomberg News | August 2, 2024 |

Miners plan to extract cobalt and other battery metals from the seabed. (Image courtesy of The Metals Co.)

A Brazilian oceanographer has been elected the next secretary-general of the International Seabed Authority, a leadership change that could slow the rush to strip-mine deep sea ecosystems for electric vehicle battery metals.

When Leticia Carvalho takes office on Jan. 1, she’ll become the first woman and the first scientist to helm the United Nations-affiliated organization responsible for the fate of 54% of the world’s seabed. A former environmental regulator in Brazil, Carvalho, 50, currently serves as an official at the UN Environment Programme in Nairobi.

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Carvalho’s election Friday at the annual summer meeting of the ISA Assembly in Kingston, Jamaica, ends the two-term tenure of Michael Lodge, a 64-year-old British attorney. Lodge aggressively pushed for the completion of regulations that would allow a potentially multibillion-dollar industry to begin, and drew scrutiny for his closeness to the mining companies the Authority regulates.

The vote by ISA member states — which came down 79-34 for Carvalho — also follows a contentious election campaign. It was marked by accusations that a key Lodge supporter tried to bribe Carvalho to drop out of the race in exchange for a top job at the ISA.

In an interview last month, Carvalho told Bloomberg Green that as secretary-general she would focus on science and act as a neutral administrator of the ISA, which includes 169 member states and the European Union. “Transparency and accountability is my top priority,” Carvalho said.

The ISA has already issued 32 contracts to private and state-backed companies to prospect for cobalt, nickel and other metals across more than 1.3 million square kilometers (500,000 square miles) of the seabed in international waters. Last year, the organization set a target of July 2025 for the adoption of complex rules to govern those mining efforts. But Carvalho said years of negotiations may still be needed to ensure that biodiverse and little-known deep sea ecosystems are protected from the most harmful effects of mining.

“There is a big amount of work to be done,” she said. “Logically, I can tell you that it’s unlikely that this is going to be accomplished by the current deadline.”

Complicating matters, scientists last month published findings that the polymetallic nodules targeted for mining in the Pacific Ocean actually produce oxygen — an extraordinary discovery that several ISA delegates cited in Kingston as a reason to slow mining efforts.

Scientists discover ‘dark oxygen’ being produced by seabed metals

A record number of member states were present at this year’s meeting, where tensions over the future of deep sea mining were on display. Some 32 ISA member states have called for a moratorium or a pause on seabed mining, with five countries joining this week.

Adding urgency to the proceedings is The Metals Company (TMC), a Canadian-registered mining venture that has made clear its intention of applying for a mining license this year, regardless of whether regulations are in place, and its plans to start mining operations in early 2026 if the application is approved. TMC has mining contracts with the small Pacific island nations of Nauru, Kiribati and Tonga. The first area of the ocean to be mined is a vast stretch of the Pacific between Hawaii and Mexico.

“This is colonialism by another name, economic imperialism, where multinational mining companies prioritize profits over the wellbeing of our people and ecosystems,” Surangel Whipps Jr., the president of the Pacific island state of Palau, told delegates this week.

Palau has led the efforts to impose a moratorium on deep sea mining until its environmental impacts are better understood. Numerous delegations stated that they would not approve any mining licenses until regulations are adopted.

Although her home country of Brazil has urged a 10-year moratorium on mining, Carvalho said it’s not appropriate for the secretary-general to take a position on the issue. “A pause or moratorium is an advocacy position of many, but so far it hasn’t got onto the agenda of the ISA,” she said.

Other delegations, including China, Japan, and some African nations, pressed the ISA to fulfill its legal mandate to enact regulations so mining can begin. “Within our blue Pacific continent, deep seabed minerals hold immense potential for our prosperity,” said Sonny Williams, a delegate for the Cook Islands, a South Pacific archipelago.

TMC chief executive officer Gerard Barron said that he has met with Carvalho several times. “We like her,” he said. “I think she can bring harmony to the ISA at a time when it could really do with some.”

(By Todd Woody)

CRIMINAL CAPITALI$M

Glencore to pay $152 million fine in bribery case

Staff Writer | August 5, 2024 |

Glencore operation in the DRC. (Image: Glencore.)

Glencore Plc (LON: GLEN) has been fined $152 million by Swiss authorities for failing to prevent a business partner from bribing a Congolese public official in 2011.

In a statement released on Monday, the Swiss attorney general’s office (OAG) said that prosecutors determined Glencore did not take sufficient measures to prevent the bribery.

The incident is related to the business partner’s acquisition of minority stakes in two mining companies in the Democratic Republic of the Congo (DRC) from a state-owned enterprise.

The miner said it does not admit the findings but has agreed not to appeal the penalty order so it can resolve the matter.

“Glencore is pleased to have resolved these investigations relating to past matters that occurred over 13 years ago,” group chairman Kalidas Madhavpeddi said in a statement. “This resolves the last of the previously disclosed government investigations into historical misconduct.”

“The OAG stated in the summary penalty order that it did not identify that any Glencore employees had any knowledge of the bribery by the business partner, nor did Glencore benefit financially from the conduct of the business partner,” Glencore said in the statement.

A parallel investigation by the Dutch Prosecution Service has also been concluded and dismissed.

In 2022, the company agreed to pay the DRC government $180 million to settle other alleged corruption claims in the country between 2007 and 2018.

With the latest fine, Glencore will have paid at least $1.7 billion to resolve various investigations into bribery and corruption worldwide.

In 2022, the company plead guilty to corruption and market manipulation cases in the US and UK, admitting that it had paid bribes to win business in eight countries from Brazil to South Sudan.

(With files from Bloomberg)

ERA sues Australia’s resources minister after lease for uranium deposit not renewed

Reuters | August 6, 2024 |

The Northern Territory in Australia. (Image courtesy of Toby Hudson | Wikimedia Commons)

Energy Resources of Australia (ERA) said on Tuesday it was suing Australia’s resources minister and others after its lease for a high-grade uranium deposit was not renewed, saying it hadn’t been given the opportunity to make its case.

The proposed development of the Jabiluka uranium deposit in Australia’s Northern Territory, which is surrounded by the world heritage-listed Kakadu rainforest, has been strongly opposed by the local Mirarr people, and sparked some of the country’s biggest environmental protests in the late 1990s.
Last month, the Northern Territory’s government, on advice from the federal government, declined to renew ERA’s Jabiluka lease. Shortly after, uranium miner Boss Energy withdrew an offer to pay ERA A$550 million ($360 million) for the site.

ERA said on Tuesday it had started legal proceedings against Resources Minister Madeleine King and the Northern Territory’s Minister for Mining Mark Monaghan as well as the Jabiluka Aboriginal Land Trust in the Federal Court of Australia.

It was “denied procedural fairness and natural justice in the decision-making process,” ERA argued in a statement, adding that it has asked the court to hear its application before the lease expires on August 11.

King’s office did not immediately respond to a request for comment.

Rio Tinto, which owns roughly 80% of ERA but does not operate it, has said it will not support any development of the project given the Mirarr people’s opposition.

(By Shivangi Lahiri and Melanie Burton; Editing by Nivedita Bhattacharjee and Edwina Gibbs)

ILA Starts Preparations for East and Gulf Coast Port Strike on October 1

dockworkers — ILA plans to take steps in September to prepare members of the union for its first strike in four and a half decades (file photo)

The International Longshoremen’s Association (ILA) is increasing its posturing for its first potential strike in more than four and a half decades. The union which represents dockworkers at U.S. East and Gulf Coast ports continues to emphasize it will not extend past the September 30 expiration of the current six-year contract.

The union in July cautioned that time was growing short for an agreement for a master contract agreement and in a statement released on Saturday, August 3, outlined the steps it is taking. Talks between the ILA and the United States Maritime Alliance (USMX) that represents the employers failed to start as planned in June due to a local dispute at the Port of Mobile regarding automation, one of the hottest topics for union leadership.

By law, the union is required to provide a 60-day notice to the employers. The ILA reports last week it sent letters to all the employer groups indicating the current agreement “would not be extended.”

The union also reports its Wage Scale Committee will be meeting on September 4 and 5 to review demands the ILA will make to the USMX when the negotiations finally begin for the master contract. Leadership will present for review the financial contract demands, with Bloomberg reporting the ILA is seeking wage increases exceeding the 32 percent granted to the West Coast dockworkers to end their July 2023 work slowdown and more than a year of contract negotiations. The East Coast union has repeatedly said the new agreement has to reflect inflation and reward the workers for their efforts to keep the supply chain moving during the pandemic.

As part of the meetings, the ILA reports it will use the opportunity to prepare for a potential coast-wide strike. The union leadership said it plans to devote time to “instruct locals on strike strategies and what to expect if the ILA is on strike at the beginning of October.”

Bloomberg in its report highlights that that a strike would impact six of the 10 busiest U.S. ports. Trade groups presenting retailers and manufacturers have already called for government involvement to oversee the negotiations while many commentators point out the strike would come just weeks before the U.S. presidential election.

“With less than 30 days to go before the end of our current Master Contract when these meetings are held, we must prepare our locals and our ILA membership for a strike on October 1, 2024. Two generations of ILA members have come into the industry since our last strike in 1977,” said Harold J. Daggett, the president of the ILA.

The union has repeatedly said it would seek to oppose any future efforts at port automation and cargo handling and would also seek to roll back its past allowances. Earlier in the summer, the union said it had become aware of automation efforts which it called a contract violation being implemented for gate operations by APM Terminals in the Port of Mobile and possibly elsewhere. The union said until this was resolved by the local it would not start formal negotiations for the master contract.

The strategy was to start discussions among the locals in 2023 with the goal of resolving all those issues before ILA leadership began talks for the master contract. The ILA has a long-held rigid stance against all forms of port automation.

Bloomberg in its reporting also says the ILA and USMX “remain far apart” on the scale of the wage increases

Trillion-Tonne Iceberg is Stuck Spinning in the South Atlantic

A23a north of South Orkney (Courtesy NOAA / RAMMB-CIRA)

When the world's largest iceberg drifted away from an Antarctic ice shelf in 2020, it was not expected to last long. Strong circumpolar currents would carry it up into the Atlantic, where it would melt away and break up. However, that did not happen - because it got stuck in a rare ocean vortex, and its slow, once-a-month orbit is not taking it anywhere.

A23a has been saying a long goodbye to Antarctica since the 1980s, when it was part of the Filchner-Ronne Ice Shelf and served as a home for a Soviet research base. In 1986, it broke off from the shelf and began to drift off into the Weddell Sea, taking the research station with it. The berg ran aground almost immediately, and a rescue mission safely recovered the scientists.

A23a stayed aground in the Weddell Sea for more than three decades. In 2020, it finally refloated and began to drift to the northwest, taking its time. By the end of 2023, it had reached the tip of the Antarctic Peninsula and the open reaches of the Southern Ocean. When it hit the Antarctic Circumpolar Current in April 2024, it was supposed to be carried northeast into the Atlantic, where it would melt away in warmer water.

However, the iceberg did not make it any further than the South Orkney Islands, and it appears that that is where it will stay for the near future. Researchers say that it is caught in a Taylor Column - a rotating cylindrical current that spans the full depth of the water column. A Taylor Column forms when a strong current passes over an isolated promontory on the bottom - for example, Pirie Bank, a dome-shaped rise that happens to be right below A23a's current position. In this case, the Arctic Circumpolar Current is passing over the bank, splitting in two on either side, and inducing a rotation in the mass of water located above the rise.

"The ocean is full of surprises, and this dynamical feature is one of the cutest you'll ever see," the British Antarctic Survey's Prof Mike Meredith told BBC.

Iceberg A23a's size is hard to visualize: it is about 1.1 million acres in area, about 75 times larger than Manhattan. It measures about 40 nautical miles by 32 nautical miles on a side, and it weighs about one trillion tonnes. All that frozen freshwater is slowly spinning at a rate of about one rotation every 24 days, and in the cold South Atlantic, it could be there a long while.

Bold Ocean Acquired by Institutional Investors Advised by J.P. Morgan

[By: Bold Ocean, LLC]

Bold Ocean, LLC (“Bold Ocean”) is pleased to announce that institutional investors advised by J.P. Morgan Asset Management have acquired Bold Ocean from its parent company, NOVA Infrastructure Management, LLC (“NOVA”). The new strategic ownership group will be pursuing growth opportunities to expand the company’s U.S. flag fleet and logistical services. Dion Nicely, CEO of Bold Ocean, will continue to lead the company, alongside an experienced and talented team.

Headquartered in Annapolis, MD, Bold Ocean/Schuyler Line Navigation Company is a leading U.S. Flag operator serving the critical transportation and logistics needs of numerous U.S. government agencies. The Company operates nine vessels that transport essential government supplies, fuel, humanitarian food aid, and other goods under long-term time charter with the U.S. government as well as parcel contracts with highly rated counterparties, providing significant revenue stability and downside protection for the business.

Dion Nicely, CEO stated: “We are thrilled to have J.P. Morgan’s deep maritime industry experience and transportation-asset focus enhancing the Bold Ocean team. Bold Ocean has a great foundation for the future and with J.P. Morgan’s support, we will continue to meet the needs of the U.S. government with the highest service levels. We would like to thank NOVA for being a thoughtful and value-added partner to Bold Ocean as we scaled the business rapidly over the past three years”.

Andrian Dacy, Global Head of Transportation for J.P. Morgan Asset Management noted: “We believe Bold Ocean will benefit from our global maritime platform, bringing scale and growth opportunities, at a time when we expect the U.S. flag market to continue to evolve and grow.” Nicholas Meer, Managing Director, Global Transportation for J.P. Morgan Asset Management, commented, “We look forward to working Bold Ocean’s management team as we continue building our end-to-end transportation solutions.”

“NOVA is honored to have supported the Company during its transformative years of growth and we are incredibly proud of the Bold Ocean team for building a market-leading business. Critical to the success of our partnership was the development and execution of a range of strategic initiatives, including strategic contract renewals, improving the fleet by adding newer and higher quality vessels, and entering into new markets, such as humanitarian food-aid,” said Allison Kingsley, Co-Founder and Partner at NOVA. “We are grateful to the Company’s founders for their partnership and commend CEO Dion Nicely and the management team for their stewardship of the business. We look forward to great future outcomes for Bold Ocean.”

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Georgia Wins Court Battle Over Contract for Anaklia Port Project

THE COUNTRY NOT THE STATE

The Georgian government has gotten new impetus to proceed with the construction of its Anaklia deep sea port project after winning a court battle with a previous consortium, whose contract it terminated.

The International Court of Arbitration (ICA) has now settled the controversy surrounding the Anaklia project after ruling against the Anaklia Development Consortium (ADC), whose contract was terminated in 2020 over delays and an alleged failure to meet the terms of the contract.

ADC, a consortium consisting of Georgian company TBC Holding, Dutch firm Van Oord, Asia’s British Wondernet Express, G-Star from Bulgaria and Conti International from the U.S., had sued the Georgian government seeking compensation to the tune of $1.5 billion. The consortium, which had been awarded the contract in 2016, argued that it had invested nearly $80 million in the project and that the government acted illegally in terminating the contract.

Now that it has won the case, the Georgian government is focused on the implementation of the project with new Chinese partners. In late May, the government brought on board a Chinese consortium led by state-owned China Communications Construction Company (CCCC) to undertake the project in the Black Sea port of Anaklia.

The Chinese consortium was granted a 49 percent stake in the project. When complete, the port will serve as a western terminus for the Middle Corridor, a rail-based trade route between China and Europe. Georgia believes it will have significant opportunities due to widespread sanctions against Russia.

Georgian state company Anaklia Deep Sea Port will control a 51 percent share in the project.

ADC issued a statement expressing “disappointment” in the ICA ruling and maintained the Georgian government acted illegally in terminating the contract. “ADC believes that the Georgian government should have been equally committed to helping to make the project happen for the benefit of its citizens, rather than undermining our collective efforts to succeed,” said the company in a statement.

Conrad Shipyard Receives Shipbuilders Annual Excellence in Safety Awards

[By: Conrad Industries]

The Shipbuilders Council of America (SCA) today announced Conrad Shipyard received both SCA’s 2023 “Excellence in Safety” and “Improvement in Safety” awards for the 2023 calendar year. SCA, the national trade association representing the U.S. shipyard industry, honors shipbuilding and repair facilities with annual safety awards for the enhancement of operations and promotion of safety and accident prevention.

Through proactive approaches and dedication to improving the safety of employees, Conrad Shipyard is one of 18 shipyards to receive awards for its continued advancement of employee safety in the shipyard industry.

“The safety of all employees is the top priority, fundamental to our values and central to the success and sustainability of our industry,” said Matthew Paxton, President of SCA. “We’re proud to recognize Conrad Shipyard and its hardworking men and women for upholding the shipyard industry’s reputation and their commitment to advancing safety. Conrad Shipyard efforts make our industry an example for other industries to follow.”

“The achievement of these two awards, in two consecutive years, is attributable our dedicated and hardworking men and women and their daily commitment to our “Safety First” culture. Our safety culture is designed to provide a safe environment in which our employees have an instrumental role for their own safety and for the safety of their co-workers. We are committed to the safety of our workforce and will continue to focus on our goal of zero incidents that cause harm to our people or the environment.” said Johnny Conrad, Chairman and CEO of Conrad Industries.

The shipbuilding industry continues to see a decrease in recordable injuries year after year, demonstrating a sharp downward trend over the past decade. This commitment to safety has allowed U.S. shipyards to adapt and address the obstacles that arose throughout the year while continuing operations.

SCA member companies are eligible for a Safety Award by submitting the SCA Injury & Illness survey for all four quarters, have zero fatalities in a single year, and either have a total recordable incident rate (TRIR) below the SCA average or if the yard reduces its year-on-year TRIR by 10 percent or more.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

“Anemos,” 1st Sailing Cargo Ship in Modern History About to Sail

Anemos at sea © TOWT

Published Aug 5, 2024 2:43 PM by The Maritime Executive

[By: PIRIOU]

TransOceanic Wind Transport's (TOWT) first sailing cargo ship has just been delivered by PIRIOU Shipyard. Today she will set sail to Le Havre where she will moor alongside on Tuesday.

Loading operations will then take place before sailing by the end of next week. This state-of-the-art vessel will make her first voyage to New York City where she is expected around the 20th.

With this first delivery, TOWT is making merchant shipping history and pioneering the decarbonization of the global maritime sector.

"Today, our first sailing cargo vessel is actually becoming ours: what emotions! After over two years in the shipyard, we are taking delivery of this ship, as seven more are yet to join the fleet! Today our thoughts go to all our partners who have been with us from the beginning of this venture. Now time for operation has come: “Anemos” will soon set sail from Le Havre to New York for her first commercial voyage, a proper TransOceanic Wind Transport" states Diana MESA, TOWT Managing Director.

"In these Olympic hours, we have made the fight against global warming our discipline. Tomorrow's launch of the sailing cargo ship “Anemos” is nothing compared to what is at stake. However, this day brings hope: today, a shipbuilding industry is taking up the challenge of building large sailing cargo ships for customers who are willing to innovate and commit themselves to “do the job”. As shipowners, we sail with humility but with an ambitious mission: to decarbonize world shipping. Thank you to all who have worked to make this day possible” comments Guillaume Le Grand, TOWT CEO.

The world's largest sailing cargo ship: “Anemos”
“Anemos” is TOWT's first sailing cargo ship. After more than two years of construction, she was delivered to Concarneau by PIRIOU shipyard. This sailing cargo ship is unique in the world:81 meters long, 15 meters wide, 63 meters high.
Sailing technology derived from ocean racing and automated rigging, allowing to sail 100% under sail, with an autonomous routing system based on artificial intelligence and meteorological data.
Wake energy recovery technology using dynamos and variable pitch propellers.

Vincent Faujour, President of PIRIOU group declares: “ANEMOS’ delivery today in Concarneau marks a key milestone in our partnership with TOWT. Far from an end, we are writing the beginning of a great story. First sailing cargo vessel of its kind, ANEMOS will be followed by 7 sister-ships, constituting the world’s first decarbonized fleet. ANEMOS is a concentrate of French innovations. It is the result of the audacity of a shipowner but also of a shipbuilder with its partners. I would really like to thank all our teams, from design to production, who worked hard to make this ship possible. They have shown a remarkable commitment. Finally, I would like to thank Diana and Guillaume for their trust in PIRIOU and the French shipbuilding industry. Fair winds to ANEMOS and her crew!"

First of a fleet
PIRIOU performed all the basic design of the ship as well as all the R&D in France. The construction was then launched at the Romanian shipyard of PIRIOU, before being outfitted and commissioned in Concarneau, France.

The build of Sailing Vessel “Anemos”, the first sistership in TOWT's eight-ship fleet, is the result of the best efforts of several leading French manufacturers. PIRIOU of course, including in its engineering and construction dimensions, but also H&T the architect, Incidence Sails, LORIMA and the Wichard Group, Actemium Marine, Paumier Marine, ACEMS... numerous stakeholders have joined forces to put this unique vessel on the water.

Ecology through concrete action: real decarbonization
By harnessing the power of the wind to shape low-carbon maritime logistics, sailing offers new prospects for economic development and innovation. Wind is a reliable offshore resource, inexhaustible, abundant and predictable.

Sailing as the primary mode of propulsion makes ocean transportation massively less polluting. In comparison with the average for container ships on the same transatlantic Westbound route, SV ANEMOS will massively reduce greenhouse gas emissions, as per ton transported and per kilometer travelled:At least -93% CO2, up to more than -99%.
98% Sulphur oxides; - 97% nitrogen oxides; 0 methane emission.

In addition to positive impact on climate the use of a sailing cargo vessel, instead of an engine reduces the impact on biodiversity with less risk of collision (noise) and less ocean acidification.

The carbon footprint of the sailing cargo vessel is less than 2g/km/T transported for a transatlantic route (calculations validated by the ADEME Agency). By 2025, TOWT will have saved 9,600 tons of CO2 emissions per year to and from Le Havre and will have shifted 72,000 tons of cargo per year to low carbon transport.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

NETHERLANDS

Damen Books Records for Revenue and Order Book

[By: Damen Shipyards Group]

2023 was a positive year for the largest shipbuilding group in the Netherlands, Damen Shipyards Group. It had the highest revenue ever for the second year in a row and the largest order book for the third consecutive year. Revenue passed the 3 billion euro mark for the first time. The order book rose from 8.8 billion to 11.3 billion euros. EBITDA ended at 157 million euros (2022: 85 million). The net result rose from 15 to 43 million euros.

Unfortunately, even though Damen is doing well overall, there are still business units facing exceptionally challenging conditions. “I am thinking above all of our Ukrainian colleagues. Every day, they are still suffering the terrible consequences of the war in their homeland, despite the fact that we have moved our branches,” explains CEO Arnout Damen. “Thanks to our Damen Support foundation, we are helping them, as well as their families and friends. It is heartening to see the successes of the foundation, in part because of donations from colleagues and suppliers. This collective approach demonstrates the strength of the family culture at our company and the positive impact it has.”

From dry dock to expedition yacht
Once again, the number of repair orders increased slightly: from 1,123 to approximately 1,200. The number of completed vessels was in line with last year: close to one hundred. They ranged from twelve Combi Freighter 3850 coastal freighters, a second locally built patrol vessel for the South African navy and the first 75-meter Yacht Support vessel, to a large dry dock for Djibouti, three cutter suction dredgers for Mexico and seven LNG-powered inland vessels (via our subsidiary Concordia Damen). The 58-meter expedition yacht Pink Shadow and many working vessels and tugs also found their way to their new owners last year, including, for example, ASD tugs for Multraship of Terneuzen and Muller Dordrecht.

Damen was also very active in the field of ‘refits’ in 2023. For instance, the complex mid-life upgrade of H.M.S. Johan de Witt for the Dutch Royal Navy was successfully completed. At Damen Maaskant in Stellendam, the trawler Scintilla Maris was converted into an exploration yacht and there was a ‘green retrofit’ of shellfish dredger YE-118 Noordland, with one of the two diesel engines being replaced with an electric motor.

E3 label
Arnout Damen: “We are seeing how, in an increasing proportion of our newbuilds, as well as refits, sustainability is an important factor. That’s a good development. By 2030, we want half the solutions we sell to have our E3 label: Environmentally Friendly, Efficient in Operation and Economically Viable. The most striking change in this area in 2023 was the introduction of a wide range of sustainable products and solutions in the offshore, such as the all-electric Multi Cat workboat.”

So our order book includes more and more ‘green’ ships. For example, the Port of Antwerp-Bruges ordered an all-electric harbour tug (RSD-E) in 2023. This will make Antwerp-Bruges the first European port with an all-electric tug with 70 tons of bollard pull in its fleet. That is one reason the order book increased by more than 25 percent last year.

Six NATO navies
Another important element in this growth was the order from the Belgian and Dutch navies for the construction of four ASW frigates. Arnout Damen continues: “We are also very proud of the order for a multi-purpose vessel (drone carrier) for the Portuguese navy. It means that we are currently building, or have recently delivered, ships for six NATO navies.”

“I would also like to mention offshore wind. This is a strong growth market in Europe, the USA and Southeast Asia. In this specific area, we have secured quite a lot of contracts (for crew transfer vessels (CTVs) and (commissioning) service operation vessels (C)SOVs)), but we are also seeing this segment generating strong demand for other workboats such as our Multi Cats and Shoalbusters. This market is also expected to continue generating significant amounts of work for our repair yards as a result of conversions, upgrades and mobilisation projects.”

Methanol
“In addition, I would like to draw attention to the segment we call ‘Harbour and Terminal’. We have been the global market leader in tugs for quite a while now. This is a relatively stable market that is becoming one of the sustainability front runners. A gradual shift to low- or zero-emission tugs has started. We are well positioned with the introduction and stock building of electrical power tugs and we have started the development of the first methanol tug. I therefore see ample opportunities to further expand our position.”

Refinancing
The successful refinancing of Damen Shipyards for the next three years led to a delay in the publication of the 2023 figures. “But with a very positive outcome. In addition to our existing and loyal financial partners, a number of leading national and international financial institutions have come on board to join us in investing in, and building on, our ambitions and those of our clients.”

Thanks in part to that confidence, then, Damen is looking to the future with optimism. “In many markets where we operate, demand is strong and interest in sustainable ships is increasing. The lights for the future are on green.”

Key Financial Figures

	2023	2022	2021
Revenue	3.09 bln	2.49 bln	2.36 bln
EBITDA	157 mln	85 mln	81.5 mln
Net result	43.2 mln	14.6 mln	1.3 mln
Order book	11.3 bln	8.8 bln	8.8 bln

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Salvaged Fire-Damaged Car Carrier Fremantle Highway Sold to China

Fremantle Highway fire wreck — Fremantle Highway escorted by the tug En Avant 25 arriving in Rotterdam for the second phase of the salvage operation (MULLER Dordrecht photos)

A year after the devastating fire aboard the Japanese-owned car carrier Fremantle Highway, the salvaged portions of the vessel are set to start a new life. A court battle over the status of the salvaged vessel has been settled with the Dutch authorities agreeing to issue an export license for the hulk now known as Floor.

A fire broke out on the Fremantle Highway (18,549 dwt) on July 25, 2023, shortly after the vessel left Germany loaded with approximately 3,800 vehicles including up to 55 electric vehicles. One crewmember died in a poorly organized evacuation of the vessel, but the others made it to safety in the Netherlands. The fire burned for a week before the vessel was brought to Eemshaven and later to Rotterdam for the salvage operation.

After spending nearly 10 months at Damen Verolme, the Rotterdam repair facility with one of the largest drydocks in Europe, the vessel was again made seaworthy. Pictures online show that the fire-damaged decks have been removed but the hull and machinery survived the inferno.

The vessel was acquired by the Dutch salvage company Koole Contractors and its Dutch subsidiary KMS. The company declared its intent to tow the salvaged portions of the vessel to China where it will be rebuilt, but Dutch authorities moved to block the export of the vessel. They argued the vessel is subject to the rules of the European Waste Shipment Regulation (EVOA) and as such has to be treated as waste.

KMS took its complaint to court but in April the civil court in The Hague ruled in favor of the authorities that the ship is to be treated as waste. KMS argued that it was bound for reuse. The Dutch authorities had said the vessel would require a waste export license subjecting it to more stringent regulations but now have agreed to issue the export license.

The Floor has been moved to a North Sea anchorage and is waiting for a salvage tug which will tow it to Xiamen, China. Dutch media reports indicate the vessel has been acquired by Qingshan Shipyard Group which will complete the repairs in China.

A year after the devastating fire, the authorities are yet to release a final report. Initial speculation was that the electric vehicles caused the fire but later reports have downplayed that speculation Reports have said it appeared the fire began in other cargo areas.

The cars were removed from the vessel while it was in Eemshaven. Approximately 1,000 were considered undamaged. This included 260 BMWs which were acquired by a Dutch salvage company. BMW took the company to court to block the resale of the cars based on the grounds they had been declared totaled and resale impeded BMW’s brand rights. The courts sided with BMW blocking the resale of the salvaged autos.

Iran Releases Filipino Crewmembers from Seized Boxship MSC Aries

MSC containership — The remaining three Filipino crewmembers from the detained MSC Aries returned to the Philippines (file photo)

Filipino officials confirmed on Saturday, August 3, that all the Filipino crewmembers who were working aboard the MSC Aries when the vessel was seized have now been released. Department of Migrant Workers (DMW) Secretary Hans Cacdac told reporters they had kept the details quiet until the seafarers returned to the Philippines while thanking the ship’s owner and the Government of Iran for their cooperation in the repatriation.

Iran had previously agreed to swap the seafarers at the end of their contracts with replacements to maintain the key functions of the vessel. The containership, which was seized by Iranian forces on April 13 while it was near the Strait of Hormuz, has been held in Iran for nearly four months. Reports indicated the crew consisted of Filipinos, Russians, Indians, Pakistanis, and one Estonian.

The first release which took place in May consisted of five Indian citizens, one Filipino, and one Estonian, who was the sole European Union citizen on board. The Portuguese government as the flag state of the vessel worked to gain the release of the crew.

Last week, Iran released the three remaining Filipinos from the MSC Aries crew. Cacdac said the three individuals had reached the Philippines on August 1.

News of the release came a day after the Philippines government renewed its calls for the release of the crew from the Galaxy Leader, a car carrier held in Yemen since November 2023. Iran unlike the Houthis that hold this crew has shown willingness to repatriate crewmembers from all the vessels it has seized. The Philippines government last week said crewmembers from the Galaxy Leader were showing symptoms of malaria and should be released by the Houthis on humanitarian grounds.

Filipino officials emphasized that they were pleased to have the crewmembers from the MSC Aries home. They did not address if there are other Filipino crewmembers aboard any of the tankers also being held by Iran.

Iran, like its proxies the Houthis, has repeatedly associated MSC Mediterranean Shipping Company with Israel and said it is an Israeli company. This is despite the corporation being based in Switzerland and run by Italy’s Aponte family.

The MSC Aries, flagged in Portugal, operates under a long-term charter to MSC but is owned by affiliates of Zodiac Maritime in which Israeli shipping magnate Eyal Ofer is the lead investor. The vessel and its cargo remain under Iranian control with no talk of its potential release even before the current escalation of tensions between Iran and Israel.

Three Month Port State Inspection Program Focuses on Crew Welfare and Wages

inspector on bridge — Port State inspectors will be emphasizing crew wage and welfare checks for the next three months (file photo)

Crew welfare and maintaining basic rights covered under the nearly universal Maritime Labor Convention has become a growing concern and now the two leading umbrella organizations for Port State Control, Paris and Tokyo, are launching a coordinated inspection campaign. During the three-month effort, Port State inspectors will work to raise awareness and verify that ships comply with the requirements of the conventions.

The International Maritime Organization highlights that the MLC, which went into force in 2013, today covers 96 percent of the gross tonnage of vessels worldwide. The IMO estimates that more than 1.5 million seafarers are covered by the master contract that stipulates working and living conditions, including minimum age, employment agreements, hours of work and rest, payment of wages, paid annual leave, repatriation, on board medical care, accommodation, food and catering, health and safety protection and accident prevention, and complaint procedures for seafarers.

Many issues emerged during the pandemic and the challenges of working and travel for seafarers which in turn raised the awareness of Port State inspectors. Some regimes, such as Australia’s Australian Maritime Safety Authority (AMSA) have been very outspoken even banning vessels for flagrant or repeated violations of the MLC.

The inspection campaign jointly overseen by the Paris MoU and Tokyo launches on September 1 and runs through November 30. Inspectors will be using a questionnaire developed by the two organizations. Among the specific areas to be included are crew wages, seafarer employment agreements, and financial securities, including repatriation and shipowners’ liability.

Announcing the effort, the two organizations said their goal is to create awareness about the requirements. Inspectors will seek to verify that a vessel complies with the requirements under the international agreements. Each ship will only be inspected once during the three months.

If non-conformities are found, the port state will have options including recording a deficiency and instructing the master to rectify it within a certain period of time. In extreme cases, they can detain a ship until the serious deficiencies have been rectified or until the port state has accepted a proposal for a plan of action.

The Tokyo and Paris organizations include as members nearly all the port state organizations. The Paris MoU, for example, reports participation by 28 state maritime administrations. Annually they conduct over 17,000 vessel inspections. A typical inspection seeks to ensure that ships meet international safety, security, and environmental standards, and during this program, there will be an added emphasis on ensuring that crewmembers have adequate living and working conditions.

In addition to raising awareness on vessels, the organizations report the results of the campaign will be analyzed and findings will be presented to the governing bodies of both MoUs for possible submission to the International Labour Organization and the International Maritime Organization.

Largest and Greenest Car Carrier Delivery to Hoegh

Hoegh Autolines celebrated the naming of the largest car carrier which it is also hails as the most environmentally friendly PCTC ever built. The company has a dozen of the Aurora Class multi-fuel vessels on order from China as part of its drive toward decarbonization.

The new Hoegh Aurora is massive with a capacity of 9,100 units. The vessel is 25,200 dwt with a length overall of 656 feet (199.9 meters). The company highlights a broad range of innovations, including strengthened decks and an enhanced internal ramp system so that the vessel can carry electric vehicles on all 14 decks.

The class has moved rapidly the company says from design to the first unit being launched in under four years. Hoegh has already ordered 12 vessels, including EU funding for the last four to be built for ammonia-fueled propulsion, and the company has options for four more vessels. The entire class is being launched with notations from DNV both for “ammonia ready” and for “methanol ready.”

“With the Aurora Class, we are pioneering efforts to combat pollution in a hard-to-abate segment,” says Andreas Enger, CEO of Hoegh Autoliners. “We are setting new standards for sustainable deep-sea transportation, making a significant stride toward our 2040 net zero emissions goal.”

The first vessel of the class, Hoegh Aurora, was named and christened today at the China Merchants Heavy Industry yard in Jiangsu, China, where two other members of the class have also already been launched. The first vessel will go into service immediately the company reports and they expect delivery of two vessels every six months until the first half of 2027.

The third vessel of the class was floated out a few weeks ago with three more building in dry docks at the yard (Hoegh Autoliners)

The first Aurora Class vessels will be running on LNG, biofuel, and low-sulfur oil. They are employing 2-stroke main engines from MAN which will give them the ability to transition to emerging fuel options. They are also being outfitted to use shore power and 1,500 square meters of solar panels on the top deck which will reduce electricity production requirements from the generators by 30 to 35 percent.

Hoegh’s goal with the vessels is to transition to ammonia by 2027. The company reports it will be able to reduce carbon emissions per car transported by up to 58 percent from the current industry average.

The company has committed to powering at least five percent of its deep-sea operations with green ammonia by 2030. The goal is to run its fleet on at least 100,000 metric tons of green ammonia by that same year.

They highlight that a broad partnership was involved in developing these unique vessels. The bridge system was supplied by Kongsberg Maritime, while DNV, DeltaMarin, MAN Energy Systems, MacGregor, TGE Marine, Bank of Communications, HD Huyndai, Glamox, and others also participated in the program.

The introduction of the new vessels comes as the sector rushes to introduce more ships to meet demand. Major companies including CMA CGM and now MSC Mediterranean Shipping have entered the sector for the first time while Chinese car manufacturers have launched their own ships. However, the EU’s efforts to impose massive tariffs on the Chinese EVs could have a major impact on demand.