Australia shuts its biggest iron ore port on cyclone threat
Port Hedland.
Australia’s largest iron ore export hub Port Hedland has been closed as a tropical cyclone develops offshore the Pilbara region of Western Australia state.
The operator, Pilbara Ports Authority, ordered all bulk carriers to leave the port by 6 p.m. local time, as two tropical lows offshore are expected to merge into a cyclone. The weather systems have already brought severe rain to the region. Port procedure mandates that only essential personnel will remain onsite.
Port Hedland handles vast volumes of iron ore from all major miners including BHP Group, Rio Tinto Group, and Fortescue Ltd.
The Australian Bureau of Meteorology issued a cyclone warning Saturday, saying it would form by Sunday and was likely to impact Port Hedland as well as the Dampier region where a second iron ore export port is located. A warning has also been issued for the town of Karratha, home to a massive liquefied natural gas plant operated by Woodside Energy Group Ltd.
Port Hedland’s iron ore exports fell to 47.614m tons in December from 48.755m tons in November.
(By Paul-Alain Hunt)
Insolvency Administrators Confident in Sale of FSG Shipyards
The provision insolvency administrators for Germany’s FSG and Nobiskrug shipbuilders told government officials and union leaders they remain confident in the efforts to save the financially troubled yards. Meeting on Friday, January 17 at the Nobiskrug shipyard in Rendsburg, Prime Minister Daniel Günther told reporters the state was willing to help in order to save the nearly 500 jobs at the two yards.
Insolvency hearings commenced against the group in December and are scheduled to proceed to court at the beginning of February. In addition, the provisional administrators told government officials that interim financing would run out by the end of January. While they remain confident, they now believe there will be an interruption of work at both yards.
The proposal put forward to the union calls for a transfer company to be established with the workers given the option of moving to this typically German arrangement until deals can be completed for the sale of the shipyards. The proposal calls for the workers to receive 80 percent of their wages with the purpose of the transfer company being to aid in training and transitioning to new permanent positions. According to media reports, while the shipyards are likely to find buyers, not all the workers will continue to have jobs even when work resumes in the spring.
Lawyers Christoph Morgen and Hendrik Gittermann were provisionally appointed by the court in December and each is handling one of the shipyards. During the meeting on Friday, they said several potential buyers had expressed interest but it is down to one potential buyer for each yard. The potential buyers are said to be from within the industry as opposed to investors.
The yards were brought under a single company three years ago by the current owner, investor Lars Windhorst, who is reported to now be playing only a minor role in the efforts to save the companies. Previously, Windhorst had rejected the insolvency claims and said he would refinance the companies. Media reports say he is no longer blocking the sale efforts.
Morgen reports that Australian shipowner SeaRoad which has a ferry under construction at FSG has expressed interest in negotiating with the potential buyer of the yard. Morgen hopes work could resume on the ferry in February. Nobiskrug builds luxury yachts with reports that there are several unfinished hulls in the shops. The buyer for this operation hopes to resume work by the spring.
Both administrators report there is much work to be done. They said the accounting at the yards is lacking creating concerns among buyers who are trying to understand the full depth of the financial problems.
The state has said once the yards are on a sound financial footing it would be willing to guarantee loans. The Prime Minister along with the Economics Minister Claus Ruhe Madsen expressed interest in maintaining the operations. Günther highlighted potential opportunities for offshore converter construction for wind farms on the North and Baltic Seas as well as naval shipbuilding for the yards.
The company’s works councils and union IG Metall participated in the meeting on Friday. They are anxious to find a solution to maintain their jobs. The union has also called on the state to intervene to provide protections for the workers.
Wallenius Wilhelmsen Wins Car Terminal Concession at Port of Gothenburg
Norway’s Wallenius Wilhelmsen won a 12-year concession to operate the vehicle and roll-on/roll-off (RoRo) terminal at Sweden’s Port of Gothenburg. The company has committed to investments to strengthen the terminal’s operations.
“We are very optimistic about Wallenius Wilhelmsen's ability to continue developing the vehicle and RoRo terminal at the Port of Gothenburg,” said Göran Eriksson, CEO of the Port of Gothenburg. “The company has presented a strong business plan and has credibly demonstrated how they will achieve the volume targets they have committed to and operate a competitive terminal with a customer-centric approach.”
Eriksson added that Gothenburg is confident that Wallenius Wilhelmsen can take the port a step closer to its overarching goal of becoming the world's most competitive port. As the largest port in Scandinavia, Gothenburg handles around 20 percent of Swedish foreign trade and over 50 percent of all container traffic. The port is focusing on sustainability, innovation, and digitalization to build a climate-efficient freight transport system.
Gothenburg highlighted that it received several strong bids from companies interested in operating the terminal but selected Wallenius Wilhelmsen due to the Norwegian company’s extensive experience in terminal operations at several ports worldwide. It also offered attractive commitments on infrastructure investments.
Wallenius Wilhelmsen will take over the operations of the terminal in February next year from Logent Ports and Terminals. The Swedish firm has been operating the terminal since 2011. Wallenius Wilhelmsen will create a newly established, independent company, to operate the terminal.
In its bid, Wallenius Wilhelmsen committed to invest approximately $6.1 million to modernize the terminal's areas, buildings, and infrastructure to further strengthen its market offering. The company intends to transform the terminal into a “one-stop-shop” for all carriers and customers. It received a 12-year concession to operate the terminal.
Apart from loading and unloading vehicles, Wallenius Wilhelmsen will also offer pre-delivery inspections of vehicles, as well as the capability to handle larger project cargo and high & heavy goods.
“Our ability to provide seamless and efficient logistics solutions will contribute to further developing the Port of Gothenburg as the leading vehicle and RoRo terminal,” said John Felitto, Wallenius Wilhelmsen COO Logistics Services. “We look forward to serving the Scandinavian market while supporting our vision of innovative and sustainable growth.”
Gothenburg’s vehicle and RoRo terminal has two quay positions consisting of 240,000 square meters of terminal space, rail connectivity, and pre-delivery inspection facilities. The port has been witnessing a steady increase in vehicles handled in recent years. In 2023, vehicle volumes increased by 14 percent to 267,000 compared to 238,000 in 2022. The volume accounted for 37 percent of the total Swedish market, making Gothenburg Sweden’s largest vehicle port. It is strategically positioned and is a key hub that connects the Nordic countries with regions such as the Far East, North America, Africa, Australia, and Northern Europe.
Gothenburg becomes the ninth terminal that Wallenius Wilhelmsen will operate, adding to its RoRo logistical experience. The company also operates approximately 125 vessels servicing 15 trade routes to six continents.
Harland & Wolff Puts Yards into Administration Ahead of Asset Sale
The deal to save the shipyards of Harland & Wolff is reported to be proceeding with the board of the company saying this week that it expects the sale process to be completed in the coming weeks. Preparing for the sale of the assets, however, the company reported it will move the individual businesses into administration after previously reporting it had the finances to maintain the operations during the transition.
“The directors have reluctantly taken the decision, after a lengthy sales process with assistance from leading advisers, that survival of the companies is no longer viable,” they wrote in a filing on January 14. They noted that the companies, which include the four shipyards, are currently subject to a sale process, reporting, “This sale will see the purchaser acquiring the majority of assets of the core Harland & Wolff businesses.”
The notice of intention to file for administration encompasses the shipyards in Belfast and Appledore as well as the smaller yards being used for fabrication at Arnish and Methil. It also includes the “People & Skills” division. Previously, the publicly traded parent company was placed into administration in December, but the yards had continued to operate. They received temporary financing from Spain’s Navantia group and filings were being made to “enable business operations to continue normally throughout the transition period.”
The latest announcement said, “The trading environment has become increasingly challenging and throughout that time, steps have been taken to minimize spend within the business.”
The status of the acquisition by Navantia was also the subject of discussion in the House of Commons on January 15. The Secretary of State for Northern Ireland, Hilary Benn, responded during the question period saying the commercial agreement was proceeding and that adjustments had been made to the contract to ensure that the fleet solid support ships contract for the Royal Navy Fleet Auxiliary could go ahead.
Asked about debts to suppliers, Benn, said it would be up to Navantia “to decide which of the invoices it wishes to pay, but it will want to secure a relationship with suppliers contributing to the fleet solid support ship program.”
The acquisition requires regulatory approval before it can proceed. The companies said in December that they were targeting January for the closing.
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