Thursday, December 07, 2023

Maersk to Proceed with $500M Investment in Southeast Asia

Maersk containership at berth — Maersk is proceeding with a half-a-billion dollar investment in Southeast Asia (file photo)

Maersk reports it plans to move forward with a more than half-a-billion dollar investment in Asia as part of the execution of its global integrator strategy focusing on an overall logistics solution. The investment, which is expected to span over three years, targets the company’s logistics and services operations as well as its ocean shipping and terminal operations despite the strong financial headwinds the company is currently experiencing.

“Southeast Asia is the fastest growing area in Asia Pacific,” emphasizes Vincent Clerc, CEO of A.P. Møller–Maersk, noting the e-commerce boom, government’s efforts to capitalize on global manufacturing diversification, and rising inter-regional trade spurring sustained growth in the region. “Our investment reflects the commitment to being the global logistics integrator.”

During the third quarter, while reporting a nearly 50 percent decline in quarterly revenues and EBIT income falling from $9.5 billion to just $538 million, the company said it intended to continue to move forward with the investments in its strategy. Clerc however warned investors that with “challenging times ahead,” the company was cutting costs including completing a 10,000-head staffing reduction that was already more than 50 percent completed.

The total investment planned for Southeast Asia will be more than $500 million and will cut across the company’s warehousing and distribution operations as well as air cargo, inland logistics, ocean shipping, and terminal operations.

Maersk reports it will invest in scaling its warehousing and distribution footprint by up to 50 percent across the area to augment its ocean, air, and land capabilities, serving both international and domestic markets and demand. By 2026, Maersk expects to add nearly 480,000 sqm capacity spread across Malaysia, Indonesia, Singapore, and the Philippines creating mega distribution centers that are strategically located.

They highlighted the investments being made at Port of Tanjung Pelepas, located in Malaysia, where it is poised to become a key integrated logistics hub. Furthermore, Maersk is also investing in increasing its landside warehouse capacity at Singapore's Changi Airport, intending to solidify its position as Maersk’s regional air freight hub.

Other investments will include significantly increasing haulage truck capacity in Southeast Asia including a pilot biodiesel-based haulage trucks and the introduction of EV trucks by 2024. In the ocean and terminal segments, Maersk will continue to invest in expanding its infrastructure across the region through APM Terminals.

Additionally, the company revealed that it is working closely with authorities in the region to explore opportunities in building green fuel infrastructure to support its future green vessel fleet.

Maersk currently has a presence in four markets in Southeast Asia, including Singapore, Malaysia, Indonesia, and the Philippines.

Maersk Settles Lawsuit Over Ever Given's Suez Canal Shutdown

Ever Given aground — Image courtesy Suez Canal Authority

Maersk Group has decided to settle a lawsuit over the disruption caused by the grounding of the massive boxship Ever Given, which shut down the Suez Canal for six days in 2021.

The number-two ocean carrier filed suit in Denmark against unspecified parties in connection with the grounding, and had sought damages of about $45 million. Danish outlet ShippingWatch confirmed Thursday that the lawsuit has ended with an out-of-court settlement.

The Ever Given went aground in the Suez Canal on March 23, 2021, shortly after she entered the southern entrance. Her length exceeded the canal's width, and with bow and stern firmly wedged in each bank, she blocked the waterway to all marine traffic.

For the complex salvage operation, the Suez Canal Authority brought in shore-based excavating equipment, cutter suction dredgers and at least 10 tugs. With much effort, the ship was finally refloated on March 29. The event made global headlines and put shipping in the spotlight, providing consumers with a rare direct example of how maritime commerce can affect their daily lives.

Over the course of the six-day shutdown, up to 400 ships had their voyages disrupted by the shutdown of the canal, including 50 boxships with connections to Maersk. In response, Maersk sued shipowner Shoei Kisen Kaisha and operator Evergreen at Denmark’s Maritime and Commercial Court for damages from the disruption.

Evergreen denied responsibility for the incident. “As Ever Given is leased by Evergreen under the terms of a time-charter agreement, all expenses for the refloating operation and any liabilities are the responsibility of the vessel’s owner," the firm said in a statement after the suit was filed.

The case's progress was closely watched in the liner shipping world, as a win for Maersk could provide a blueprint for other affected carriers to file similar claims. On Thursday, Maersk confirmed that it has withdrawn the lawsuit, following news of a settlement agreement.

Boskalis, owner of salvor SMIT Salvage, filed suit in a London court earlier this year seeking compensation from Shoei Kisen Kaisha for its role in freeing the stranded ship. According to the FT, the estimated value of the Ever Given job was in the range of $25-50 million.

SMIT has continued to work with Shoei Kisen Kaisha: the salvor played a role in the response to the burning car carrier Fremantle Highway, which caught fire off the coast of the Netherlands in July.

Korea Blames “Unauthorized” Alterations and Maintenance for 2017 Casualty

Bulker Stellar Daisey — Maintenance issues and alterations were blamed for the 2017 loss of Stellar Daisy, a tanker converted to become a bulker (NSRI file photo)

More than six years after the loss of the converted bulk carrier Stellar Daisy, a South Korean inquiry into the sinking which claimed the lives of 22 crewmembers confirmed the findings blaming maintenance issues while also adding some new details on the contributing factors.

The loss of the Stellar Daisy on March 31, 2017, approximately 2,000 nautical miles from the Port of Montevideo, Uruguay with 24 crew members on board shined light on the then-common practice of converting aging tankers into large bulk carriers. Having begun her life in the 1990s, the Stellar Daisy was a converted very large ore carrier (VLOC) with an overall length of 322 meters (1,056 feet) and 266,141 dwt. She had 10 cargo holds.

The conversion was carried out at Cosco (Zhoushan) Shipyard, and typical of the VLCC-to-VLOC conversions the center cargo tanks were outfitted with the addition of deck hatches to be used as bulk cargo holds. The process required the hull framing to be reinforced and modified with the addition of about 6,000 tonnes of structural steel.

According to a report from Korean news agency Yonhap, the Busan Regional Maritime Safety Tribunal issued a ruling today, December 5, citing “neglect of maintenance by its operator,” as the cause of the Stellar Daisy casualty. Previous investigations reported that cracks had been seen on the vessel and believed it split in two and sunk. The Stellar Daisy was fully loaded carrying 260,000 tons of iron ore at the time of the casualty.

The tribunal, according to the report from Yonhap, reported that it found the vessel’s operator Polaris Shipping had installed an unauthorized wastewater storage device on the bottom of the ship. They concluded that the company did not inspect or strengthen the ship's hull. The shipping company was supposed to conduct repairs to safely load cargo on the Stellar Daisy, but the tribunal ruled that Polaris let the ship set sail without reinforcement.

Polaris’ maintenance and operations have previously been cited in the investigations into the casualty. The Marshall Islands in 2020 issued a report from its investigation citing structural damage that was likely due to a combination of factors, including the strength of the ship’s structure being compromised over time due to material fatigue, corrosion, unidentified structural defects, and multi-port loading, as well as the weather conditions the vessel encountered in the days preceding the casualty.

In 2020, Polaris Shipping and its CEO Kim Wan-Jung were found guilty of failing to report defects with the vessel and he was sentenced to six months in jail. Polaris in 2021 scrapped the last of its converted ships, but last year South Korean prosecutors filed a new round of charges against the CEO of the company and six employees at the urging of the families of the lost crewmembers.

“The tribunal's decision is expected to affect civil and criminal proceedings related to the sinking,” writes Yonhap. They said that the trial is still proceeding on the charges brought in 2022 against the six individuals and other cases are also ongoing related to the casualty.

The Korea Register of Shipping was also investigated but the tribunal acquitted the class society. Yonhap reports that the decision said it was “difficult to recognize the causal relationship between the ship inspection agency and the sinking of the Stellar Daisy.”

The loss of the Stellar Daisy brought renewed attention and criticism to the conversion of old tankers to bulkers. The industry has abandoned the practice and in 2020 Brazilian iron ore mining company Vale announced that it would begin phasing out all the converted ships from its operations. BIMCO commented that the high cost of maintenance was dooming the class of ships making them uneconomical to operate.

Fortescue Unveils Ammonia-Fueled Ship Calling for Regulations to Catch-Up

FFI Green Pioneer is being prepared to operate on a mix of ammonia and diesel fuel (Forestcue)
PUBLISHED DEC 3, 2023 5:40 PM BY THE MARITIME EXECUTIVE

Fortescue, an Australian mining company that is working to become a green technology company, reports it completed the retrofit to create the world’s first ocean-going ammonia-fueled ship. The company’s flamboyant founder and chairman Andrew Forrest arrived in Dubai last week for the COP28 conference aboard a vessel the company has named FFI Green Pioneer.
The converted PSV however made the three-and-a-half-week trip from Singapore on diesel fuel. Forrest explained, “At the moment, the regulatory landscape does not allow for ammonia ships to operate.” He told reporters that they made the trip from Singapore as a symbol to the world of the technology solutions and regulatory changes needed to decarbonize shipping.
He is calling on regulators and ports to license green ammonia loading to facilitate pollution-free shipping. Forrest says that now that green ammonia is emerging as a bulk marine fuel, it is time for the ports to become capable of handling the fuel. However, he contends that no port would permit him to operate today on ammonia.
“This is seriously limiting the progress of the decarbonization of shipping. I look to the leadership of the world’s ports to make clear that running the world’s global shipping on dirty bunker fuel has to stop, as we have a pollution-free alternative.”
Fortescue Future Industries acquired the 13-year-old supply ship MMA Leveque early in 2022 from Australia-based MMA Offshore. Built in 2010 in Indonesia, the 3,100 dwt vessel was originally outfitted with four diesel-electric Cummins main engines.

The company says it spent the past 18 months developing the systems, process, and technology needed to run the Green Pioneer as an ammonia dual-fuel ship. They used similar technology to a four-stroke engine the company retrofitted and demonstrated at its facility in Perth, Australia earlier this year. The engine runs on a blend of ammonia and diesel.
A gas fuel delivery system was installed on the supply ship while two of its four engines were converted to operate as dual-fuel on a mix of ammonia and diesel. Forrest says that regulations meant the vessel was not able to carry ammonia or demonstrate its technology to use ammonia while in Dubai. However, when the vessel returns to Singapore after the conference, Fortescue says it will complete commissioning to enable the first ammonia transfer and reach flag and class approval.
The company says it does not plan to stop with this first demonstration. It is also working on its broader plan for a world-first fuel transfer and marine vessel with approval to use ammonia as a fuel. Forrest told reporters in Dubai that the company is committed to launching a 300-meter (984 foot) 270,00 ton ammonia-fueled iron ore bulker by the end of this decade.

Wärtsilä Expands Methanol Engine Offering to Accelerate Sustainability

Wärtsilä is looking to offer shipowners the broadest portfolio of methanol-fueled engines to help them meet the regulatory challenges to support the move to lower carbon emissions and increase sustainability for shipping. A global leader in power and propulsion for the marine market, Wärtsilä Marine Power seeks to continue to lead the market today by introducing four additional methanol-fueled engines to its portfolio.

“We recognize that it is vital for ship owners to have maximum flexibility and to keep options open as the industry navigates the uncertain pathway to net zero, and we are working hard to deliver this operational flexibility,” said Stefan Nysjö, Vice President of Power Supply, Wärtsilä Marine Power. “Our track record is already very solid, and this expanded engine portfolio adds to both our accomplishments and our long-term commitment to the maritime industry.”

The move to expand the methanol portfolio comes as the industry continues to move toward methanol as the emerging best alternative currently available to achieve the goals for decarbonization. Martin Wold, a consultant at DNV highlighted yesterday that four more methanol-fueled ships were ordered in November pushing the orderbook to over 200 vessels due in the next five years. While there were only a few orders overall in November, it was equally split between LNG and methanol-fueled propulsion and methanol has quickly risen to the second most ordered option while other alternatives such as ammonia remain theoretical with many challenges still to be addressed.

With today’s announcement, Wärtsilä reports it will add the Wärtsilä 20, Wärtsilä 31, Wärtsilä 46F, and Wärtsilä 46TS to its portfolio of engines capable of operating with methanol fuel. The Wärtsilä 32 was launched last year as a methanol engine and has already received type approval certificates from several classification societies. The Wärtsilä 20 engine family can be ordered with methanol combustion capabilities. The four new methanol engines will be available for deliveries at different points from 2025 onwards.

Further, throughout the Wärtsilä diesel engine portfolio, covering both new engines, and those currently in operation, Wärtsilä is developing the corresponding methanol retrofit capabilities. Methanol upgrades are either available or under development for the Wärtsilä 31, Wärtsilä 32, Wärtsilä 46F, Wärtsilä 46TS and Wärtsilä ZA40S engines.

“Decarbonisation is front and center to our strategy going forward, and the development of engines capable of running on future fuels is crucial to that,” said Roger Holm, President of Wärtsilä’s Marine Power business.

The company also highlights that it is backing its extensive experience with strong investments in developing new fuel-flexible technologies and products. Wärtsilä is one of the few marine engine builders with extensive experience in methanol engines, having converted the first of four engines on the ferry Stena Germanica in 2015. Last year, the Wärtsilä 32 Methanol engine and MethanolPac storage and supply system were launched, becoming one of the first commercially available solutions for using methanol as a fuel in the maritime industry.

CSSC Designs Containership Using Molten Salt Nuclear Reactor

Concept for the first nuclear-powered containership (CSSC/Weibo)

Designs were unveiled in China today, December 5, for the world’s first large containership using the new nuclear power concept known as Molten Salt reactors. The design was developed by Jiangnan Shipbuilding, a division of the Chinese state-owned China State Shipbuilding Corporation (CSSC) and as if to prove that it is more than a theory, they reported that DNV issued an Approval in Principle (AiP) certificate for the design.

Few details were provided for the design with reports highlighting that China has classified the details of its efforts with thorium-based reactors because of the potential military applications. China however highlights that it has an abundant and less expensive supply of thorium meaning that it could be a cost-effective and zero-emission alternative for shipping and other industries. The thorium would be used as a safer alternative to uranium-based reactors.

CSSC writes in a statement posted to Weibo, “This type of ship has high safety as the reactor operates at high temperatures and low pressure, meaning it can avoid in principle core melting.” They highlight that the thorium reactor would not require high-pressure containers and pipelines as the reactor does not use large amounts of water for cooling. In the event of an accident, the core solidifies at ambient temperature, and in addition to normal shutdown methods, CSSC writes that the salt fuel can also be quickly discharged from the reactor to prevent spreading.

The concept design is for a 24,000 TEU containership, which they are calling the world’s largest nuclear-powered containership. Other safety features they reported include the location of the reactor, which was not explained. CSSC highlights that the concept adopts a “double-sided redundant design.”

Reporting on the presentation at a conference in China, the South China Morning Post says China got the first thorium-based molten salt reactor running earlier this year during a test in the Gobi Desert. The paper contends most countries including the United States have abandoned efforts to develop the reactors because of the complexity of the technology.

Several projects are looking at the concept of the Molten Salt reactor to provide mobile power but this appears to be the most advanced design. In the United States, the American Bureau of Shipping was contracted to lead a study into nuclear propulsion and its applications to commercial shipping nearly 80 years after the U.S. demonstrated the first commercial nuclear propulsion ship, the now long-ago retired ns Savannah. Russia continues to operate a nuclear-powered commercial ship while several projects are exploring Molten Salt reactors placed on barges or ships that could be positioned to provide power in remote areas or for emergency recovery operations.

Car Carrier Boom: CSSC Books Order for 12, DNV Approves Largest Design

Hyundai Glovis will operate on charter between 12 and 20 of the largest car carriers with 10,000 units (CSSC)

The vehicle transport sector is continuing its rapid growth with a new generation of the world’s largest Pure Car and Truck Carrier (PCTC) set to emerge from the Chinese shipyards. China State Shipbuilding Corporation (CSSC) celebrated the largest order for the largest yet-built car carriers while at the same time, China Merchants rolled out the design for an even larger ship. This comes as the sector is capacity-constrained and now has as many as 100 new vessels on order.

During this week’s China International Maritime Exhibition CSSC signed a multitude of orders but the company was highlighting what it said was the largest single PCTC order in shipbuilding history. It is for a new class of the vessel which they also highlighted as the largest and most advanced in the sector.

The new ships will have a total of 14 car decks with five of them being lift or movable decks for a total capacity of 10,800 units. The vessels will have the capability to load ultra-high and ultra-heavy ro-ro cargo as well as a range of vehicle types. Special consideration is given to transporting hydrogen, compressed natural gas, liquified petroleum, and other new technologies for powering vehicles including electric vehicles, which they expect will drive the industry’s growth. The ships will also be able to transport dangerous cargo and refrigerated containers.

The design and range of capabilities will improve the vessel’s density and flexibility of cargo loading. CSSC highlights that while the vessel’s capacity will be 16 to 20 percent larger than the current biggest vessels with a 9,000-unit capacity, transport costs will be eight percent lower per unit.

The ships will also be environmentally sensitive. They are designed to operate on LNG while also being ready for either ammonia or methanol.

Two of CSSC’s subsidiaries booked a combined order for a minimum of 12 of the vessels and possibly as many as 20 if the options are exercised. As was announced earlier in the week, six of the vessels will be built at Shanghai Waigaoqiao Shipbuilding for Seaspan. It marks the first time the containership company has expanded into the car carrier segment. They also have an option for up to four more vessels.

In a second surprise development, South Korea’s HMM, another primarily container carrier, also ordered six of the vessels to be built at Guangzhou Shipyard. They also have an option for up to four more ships. It is part of HMM’s previously announced strategy designed to expand the company and diversify into other segments to balance with the performance of the containerships.

Delivery is set to begin in 2026 for all the vessels. They will also be operating under long-term charters to Hyundai Glovis, which is one of the world’s largest operators of PCTCs. The company reported last month that its board had approved the plan to build the new class of next-generation vessels.

Deltamarin's rendering of the design for the largest PCTC designed with China Merchants

The title of the largest vessels in the category may however be short-lived. During the same trade fair, China Merchants Jinling Shipyard received design approval (AiP) from DNV for a new even larger car carrier. The concept calls for a vessel able to transport 11,000 units. It would also have 14 decks and be 767 feet (234 meters) in length with a 131-foot (40-meter) beam. China Merchants emphasizes like CSSC that the size would increase efficiency and reduce transport cost per vehicle.

The vessels were designed in partnership with Deltamarin and would feature an optimized hull and a stern flow device to improve operating efficiency. They will also use air lubrication for the hull to reduce drag. Powered by LNG, the new class of car carriers would be equipped with a 4,200 cbm LNG tank to maximize range.

China Merchants reports it is already in discussions with an unnamed potential customer for the vessel.

Hijacked Car Carrier's Crew Treated "As Well As Can Be Expected"

A Houthi naval forces commander welcomes the crew of the seized car carrier Galaxy Leader (Houthi Military Media)

The crew of the hijacked car carrier Galaxy Leader are being allowed to have a limited amount of contact with their families, and the information that they've passed on suggests that they are being reasonably well-treated by the Houthi rebels who captured the ship, according to the shipowner.

In a statement, owner Galaxy Maritime Ltd. called on the crew's nations of origin to redouble their efforts to free the seafarers. "The 25 crew members being held have no connection whatsoever with the current situation in the region," Galaxy Maritime said Monday. "Nothing can be achieved by their further detention."

17 members of the Galaxy Leader's crew are Filipino, and the remaining eight are Bulgarian, Romanian, Ukrainian and Mexican citizens. The government of the Philippines says that it is putting a high priority on securing the release of its nationals aboard Galaxy Leader. Philippine President Ferdinand Marcos Jr. canceled a planned trip to Dubai for the COP28 climate summit in order to focus on negotiations for the seafarers' release, and said that Manila was dispatching a delegation to Tehran. (Iran is the Houthi movement's foreign sponsor.)

Galaxy Leader was hijacked by heavily-armed militants and a Houthi-operated helicopter on November 19. The orchestrated, carefully-filmed boarding appeared to catch the car carrier's crew by surprise. The ship was diverted to Hodeidah, then relocated to Al Salif, both controlled by Houthi separatists.

On arrival, a top Houthi commander boarded the ship and told the crew that they would be treated as "guests." In a recorded encounter, he invited them to ask for anything that they might need.

Since the ship anchored off Al Salif, it has become something of a tourist attraction for the Houthi population at large. Multiple videos posted to social media show Yemeni nationals dancing, playing music, sharing a narcotic herb with crewmembers, and taking photos of themselves on board. One recent image appears to depict a college graduation ceremony on the top deck.

The Galaxy Leader is operated by Isle of Man-based Ray Car Carriers, a firm with ownership ties to an Israeli shipping magnate. There are no Israeli nationals aboard, according to the Israeli government. Houthi leaders have promised to target Israel-linked shipping in retaliation for the ongoing Israeli military operation in Gaza, and have launched multiple attacks on merchant vessels in the Red Sea over the past two weeks.

According to Politico, some U.S. officials are concerned that the White House is treating these attacks with less than the degree of concern that they deserve. The crews of the destroyers USS Carney and USS Thomas Hudner have shot down nearby drones multiple times, fearing the possibility of an attack.

Over the weekend, Houthi forces targeted three more ships, Unity Explorer, AOM Sophie II and the Number 9, according to U.S. Central Command. USS Carney shot down three UAVs while assisting Unity Explorer.

The Biden administration has hedged on whether U.S. Navy warships were targeted by any of these attacks. However, Pentagon officials told Politico that it is clear that U.S. warships are "under threat" like never before in the Red Sea. “You’d be hard-pressed to find another time” when the threat level was higher, one official said.

Officials have also made clear that the disruption is not just a regional Houthi phenomenon. U.S. Central Command assesses that "these attacks, while launched by the Houthis in Yemen, are fully enabled by Iran."

MAN OVERBOARD

UK’s MOB Callout Turns into Case of Illegal Immigration

MOB search — Angle RNLI Lifeboat led a massive multi-agency search Sunday night and again Monday (Angle RNLI)

British authorities now believe that a man overboard search commenced on Sunday evening along the coast of Wales was instead a case of illegal immigration. The report prompted a massive multi-agency search on Sunday and again on Monday, only for the authorities to now report they arrested the individual onshore in the villages in Pembrokeshire on the coast of Wales.

The call-out began Sunday, December 3 when the crew aboard an unidentified crude oil tanker requested assistance saying it had reason to believe a crewmember had gone overboard. The tanker was at Valero’s Pembroke Oil Terminal located on the Milford Haven Waterway. The crew reported that they had found indications that someone was overboard and had searched the vessel. They reported an unidentified crewmember was missing.

HM Coastguard confirmed that it received the call that someone was missing from the tanker and likely in the water. They dispatched the RNLI lifeboat from Angle to start the search. A police boat also joined in the search and the lifeboat reports after making “best speed” to the scene they also launched their inflatable Y boat. A Coastguard rescue helicopter also was sent to assist with the search but later turned back due to heavy rain which made it unsafe for it to continue to participate in the search.

The lifeboat reports carrying out multiple legs searching the area around the vessel as well as along the coastline and waterways. The crew utilized its searchlights, image intensifiers, and thermal imaging equipment to aid in the search, all to no avail. After being in the area from around 10:00 p.m. local time and despite the heavy rains the search continued until 2:00 a.m., when the lifeboat was prepared for its next call.

Angle RNLI search over 32 miles of shoreline and around the vessel in two searches despite heavy rain (Angle RNLI)

On Monday, with the weather having improved, the lifeboat was again dispatched to conduct an additional search of the area. They report completing a search covering 32 miles of shoreline before the crew and lifeboat were stood down.

Later that night the police report arresting the crewmember on shore. He is said to be in good condition and without further details the police report the crewmember is being held on suspicion of being an illegal immigrant. The case has been handed over to the Border Force.

Western Australian Government Unveils Plan for Relocation of Fremantle Port

Fremantle Australia — The plan calls for the relocation of container operations from the Inner Harbour 15 miles tothe south to join the bulk port (Fremantle Ports file photo)

Following years of intensive studies and consultations, the Western Australian (WA) government has unveiled its preferred design and location for the relocation of the container operations currently in Fremantle. The port, which handles nearly all the container traffic for all of Western Australia is quickly running out of capacity and also occupies prime real estate which official highlight could be better used for the city.

The preferred design and location unveiled by the WA government on November 29 calls for the relocation of the container operations from its current location to Kwinana, approximately 15 miles to the south, and uniting the container operations with the existing bulk cargo operations. Known as the Westport Project the container operations would be adjacent to the existing Outer Harbour, which is one of Australia’s major bulk cargo ports handling grain, petroleum, liquid petroleum gas, alumina, mineral sands, fertilizers, coal, sulfur, iron ore, and other bulk commodities.

The planning for the new container terminal has been ongoing for years with officials highlighting the concept of placing containers in Kwinana was first suggested in 2006. Between 2018 and 2020, they report the Westport Taskforce explored 25 different locations ranging from Fremantle to Cockburn Sound and Bunbury for the new container terminal before selecting the preferred location. They started with 30 different design options, narrowing it first to seven and then three before selecting the design that they believe provides the best opportunities as well as environmental outcomes.

Currently, the port which is located in the Fremantle Inner Harbour in Perth, handles imports and exports of around 800,000 containers with terminals operated by DP World and Patrick. However, this port infrastructure and its surrounding roads are expected to reach capacity within the next two decades, hence the necessity for a new terminal. Long-term planning calls for the port to grow to more than three million containers over the next 50 years.

Government officials released the preferred design for the new container port (Fremantle Ports)

The new design includes a container terminal adjacent to the shoreline of the current Kwinana Bulk Terminal. Another aspect is a new breakwater to provide enhanced protection to the port and docked ships. The design will allow the new container terminal to handle larger ships than the existing Fremantle terminal and also incorporates redevelopment of the aging Kwinana Bulk Terminal jetty. The new facility would also be supported by an enhanced multi-modal infrastructure with road and rail links.

“A world-class port in Kwinana is critical for our state to remain a global economic and industrial powerhouse for decades to come,” said WA Premier Roger Cook. “Through this design, we can ensure WA can continue to meet trade demand long into the future while strengthening our supply lines.”

The move to relocate Fremantle Port is also expected to unlock around 260 hectares of prime inner urban land in Fremantle. The state government has indicated it wants to transform the space into a “vibrant precinct” to cater to WA’s growing population. One proposal is to establish a public space and residential facilities. Fremantle Port would continue to be a working port for cruise ships, visiting naval vessels, and recreational craft.

The next step is the development of a project business case report, scheduled to be finalized by mid-2024. Previously the budget for the project was set at A$4 billion (US$2.7 billion) but government officials said that was pre-pandemic and they expect to determine the timeline and cost for the new terminal based in the next phase of the project.

Report: Green Shipping Corridor Initiatives Doubled in 2023

Green shipping corridors are emerging as one of the promising approaches to accelerate climate action in shipping. At the ongoing COP28 Climate Summit in Dubai, this initiative has received yet another major backing, with the U.S., Denmark, and the Maersk Mc-Kinney Moller Center pledging to join forces to establish Global South Green Corridors.

The announcement of the plans for the latest green corridor initiative coincided with the release of the 2023 Annual Progress Report on Green Shipping Corridor, prepared by the Global Maritime Forum on behalf of Getting to Zero Coalition. The report reveals that the number of green corridor initiatives around the world doubled in the last year from 21 to 44. It goes on to project that 2024 will prove pivotal for green corridors, buoyed by increased governmental efforts to establish these routes as well as sustained industry and port efforts.

“It is, of course, encouraging to see the emergence of so many new green corridor initiatives and the increased maturity of existing green corridors, but the other side of this maturation has seen the unearthing of a new set of challenges as the corridors move closer to implementation,” said Jesse Fahnestock, the Global Maritime Forum’s project director for decarbonization.

Currently, the majority of the plans for green corridors are focused on ports in the global north. However, the new project aims to incorporate for the first time developing countries. As part of the plan that was announced, the project will conduct pre-feasibility studies in Namibia, Panama, and Fiji, and two more countries to be announced soon.

“We are facing a global transition that needs to be inclusive, just, and equitable to be truly sustainable: from East to West and from South to North. This is why we are excited to partner with U.S. and Danish governments to establish the Global South Green Corridors with countries in Latin America, Africa, and the Pacific,” said Bo Cerup-Simonsen, CEO of Maersk McKinney-Moller Center for Zero Carbon Shipping.

Denmark’s Minister of Industry, Business and Financial Affairs, Morten Bødskov, commented, “We need to transition containerships to new fuels, and this can only happen through collaboration between countries worldwide and maritime companies. This partnership is a prime example of how we should drive the green transition at sea."

Similarly, Anne Steffensen, CEO of the trade group Danish Shipping said, “The Global South Green Corridors project is a brilliant idea that will assist countries in the Global South in making sustainable use of their resources and in making a vital contribution to achieving the goal of climate neutral shipping. That’s a win-win for everybody.”

The Annual Progress Report on Green Shipping Corridor however highlights some of the challenges facing the implementation of green corridors. The report identifies the need to make key fuel decisions. Determining the priority fuel they conclude is a key consideration in the execution of green corridors. However, the maritime industry they note is yet to settle on the next future green shipping fuel, something which is impacting the planning of green corridors.

Additionally, mobilizing customer demand for the green corridors remains low. Currently, only five initiatives are incorporating cargo owners. The underlying assumption for most cargo owners is that there will be additional costs associated with green shipping, and without a level playing field established through global or regional policies, first-movers the report says are poised to bear most of the risks.

Despite the challenges, the report concludes that encouragingly, government support for green corridors is rising. They note two years after the concept was adopted at the COP26 conference 18 governments are now directly involved in the initiatives.

Several of the projects have also announced completing key planning steps toward the launch of the first corridors. The initiatives have focused on key ports such as Singapore, Rotterdam, Shanghai, and Los Angeles, or regional such as the Pacific Northwest/Alaska, or the Baltic, but with the latest announcement confidence is growing that support will be provided for developing countries which might otherwise be left behind in the efforts.

Low Water on the Amazon Strands Tanker Near Manaus

tanker stuck on Amazon — Cruise passenger caught these pictures of the tanker grounded along the Amazon below Manaus (Jo Johnston/Facebook)

Authority in the Amazon region and Brazil are waiting for a determination about what to do with a tanker that is stuck in the mud due to the low water levels along the Amazon River. The reports are that while the outer hull sustained some damage the vessel is not leaking and there have been no environmental issues.

The 50,000 dwt Minerva Rita, a product tanker registered in Libera, was outbound from Manaus, Brazil on December 4 when the vessel grounded in the river just below Manaus in the Guajara Channel. The tanker which is 183 meters (600 feet) in length was transporting 8,500 cubic meters of gasoline and 18,000 cubic meters of naphtha after loading at the Amazon Refinery (REAM).

Initially, reports were that the vessel struck a rock in the river and anchored. Officials from the Brazilian Navy however are blaming the vessel saying it took a “wrong turn” and passed through a shallow area created by the drought.

The Amazon has for months been experiencing low water levels. Cruise ship passenger Jo Johnston who was also on a ship moving along the river this week wrote on social media that a pilot boat was ahead of their cruise ship, taking soundings as they proceeded toward Manaus. There are reportedly temporary channel markers set as well as indications on the electronic charting systems of the new dangers due to low water.

Brazilian media reports are that some larger vessels have elected to remain further down river at Itacoatiara due to the low water levels. They said that there are currently at least 20 vessels holding either down river or near the mouth of the river while others continue to proceed cautiously with the assistance of the local authorities toward Manaus.

(Jo Johnston/Facebook)

A spokesperson from the refinery said that they had offered assistance to the tanker but that they only owned the cargo and had no responsibility for the operation or navigation of the vessel. As of midweek, the refinery had gained permission from the Amazon authorities to offload the cargo.

Officers from the Navy command overflew the area and the local authorities launched an inspection of the vessel. Divers went down at the beginning of the week and a second inspection was conducted midweek. The tanker is a double-hull vessel and they are reporting that the outer hull is damaged or possibly holed below the waterline on the port side. The inner skin remains intact and the vessel is in no immediate danger.

The owners of the tanker are reported to be developing a plan but the Navy said there was no immediate plan to attempt to move the vessel. It is unclear if it could be safely moved and in its current position it is not blocking navigation on the river. An investigation is underway to determine why the Minerva Rita grounded.

LA REVUE GAUCHE - Left Comment