Archive for the 'dry-bulk shipping' Category

China’s seas contributed RMB2.49 trillion ($347 billion), or 10%, of the country’s gross domestic product (GDP) last year.

A report, issued by the State Oceanic Administration (SOA), said the value of marine industries, including fishing, transport, oil and gas, tourism and shipbuilding, grew 15% year on year, more than the economy as a whole.

The marine industry employed 31.5 million people last year, 1.9 million more than in 2006.

SOA spokesman Li Haiqing said the main pillars of the rapid growth were the traditional industries of transport, tourism and fishing, which accounted for more than 80% of total output value.

Emerging industries also grew quickly. For example, the oceanic biological pharmaceutical industry, which generated more than RMB4 billion last year, was up more than 37%.

With the launch in November of the first offshore wind power station, funded and run by the China National Offshore Oil Corporation, the sector generated RMB500 million, up 17% year on year.

The gross production value in the Bohai Bay Rim Area was more than RMB954 billion, accounting for 38% of total output of the marine sector. Similarly, the gross production of the Yangtze River Delta region amounted to about RMB775 billion, or about 31% of the total output.
Source: English East Day

Dalian Port was, at one time, the number one port in China. Not any longer but it is making a strong comeback and hopes to become a shipping hub for Northeast Asia.

This come-back process started last May when China’s largest mineral ore berth started trial operations.
A month later it announced it had opened more ocean routes and lifted its container volume.
In July, Dalian Port began trial operations of China’s largest crude oil berth and started construction of giant auto berths.

Dalian is not the only port expanding and modernizing in the north east. There is, as it were, a three-port battle for Northeast Asia hub status.

The other two vying for the status are Tianjin and Qingdao.

Tianjin leads the northern trio in general cargo volume and is expected to further increase the gap this year by boosting general cargo capacity by 42 million tons and container capacity by 1.5 million TEUs.

Qingdao is China’s third largest container port after Shanghai and Shenzhen and its general cargo volume is also more than that of Dalian.

Dalian Port also faces fresh competition from the neighboring ports of Yingkou and Jinzhou.

Hui Kai, director of the Dalian Port Authority, is aware of the port’s deficiencies being outnumbered in container terminals and general cargo berths. But he said, ‘By 2010, Dalian will be able to handle 250 million tons of general cargo and 10 million TEUs of containers. And by 2020, the port will lift its capacity to 350 million tons of general cargo and 15 million TEUs of containers.’

Crude oil, roll on-roll off cargo, grain and containers will be the main targets of the port. For a very full report click on Source.
Source: CargoNews Asia

Shares in Sinotrans Shipping, China’s third-largest bulk vessel owner, had a Hong Kong IPO and unfortunately saw the shares slump possibly because investors cautiously reduced shares in the bulk-shipping sector because of concerns about falling iron ore and coal freight rates.

The stocks tumbled to HK$7.12 (US$0.93), 13% lower than the HK$8.18 (US$1.06) initial public offering price, while its sister company, logistics firm Sinotrans, fell 7.3%to HK$3.7 (US$0.48.)

Analysts said investors were also worried about the health of the US economy, which shows signs of a worsening credit crisis. In addition, Sinotrans Shipping’s IPO was priced at the high end when the market was still buoyant.

Taifook Securities shipping and aviation analyst Cho Fook-tat said, ‘Sinotrans Shipping is a good quality stock. It is plagued by lukewarm market sentiment.’

It joined other shipping stocks in a broad slide as the Baltic Dry Index, an indicator of commodity-freight rates, has fallen for seven days in a row.

Sinotrans Shipping raised HK$11.45 billion (US$1.484 billion in the largest Chinese shipping IPO since 1999 to expand its fleet.

Zhao Huxiang, president of China National Foreign Trade Transportation Corp, Sinotrans Shipping’s parent group, told reporters, ‘We are very confident about our profitability in 2008 and beyond. Asia, especially China, has strong demand for dry-bulk shipments, and China’s development fuels the global ocean shipping industry.’
Source: China Daily

Sinotrans, China’s largest transport company, will integrate dozens of its smaller subsidiaries into two listed firms by 2010 as it prepares for an IPO (initial public offering) in Hong Kong later this month.

The IPO could be worth up to US$1.69 billion.

Sinotrans vice-president Zhang Jianwei said the smaller companies would be merged into Sinotrans Shipping and its existing Hong Kong-listed company, Sinotrans.

Zhang Jianwei said at the same time Sinotrans Shipping would become the group’s bulk shipping flagship. This consolidation will help boost the total turnover of the Sinotrans Group to a forecast $10 billion by 2010.

Sinotrans Shipping has priced its offer at 12 to 14 times the firm’s 2008 earning forecast of $300 million. Trading in the shares will start on November 23 and seven cornerstone investors have already subscribed for a total of $175 million worth of shares and will very likely make a great deal of money.

These include Li Ka-shing, one of Asia’s richest men and chairman of Hutchison Whampao, which controls leading port operator Hutchison Port Holdings.

Other key investors are three Chinese shipping and port giants — China Cosco Group, China Shipping Group and China Merchants Group — together with Ping An Insurance, Lee Shau-kee, chairman of Henderson Land Development, and hedge fund Citadel Investment Group.

Sinotrans Shipping, which was founded in Hong Kong in February 2003, has 26 bulk carriers, three single-hulled very large crude carriers and five small container vessels in its fleet.

The firm said proceeds from the IPO will be used to expand its fleet and acquire shipping companies and repay bank loans.
Source: CargoNews Asia

The Port of Wuhan, where the Yangtze River joins the lesser Han River, will be built into the largest freshwater shipping center in Central China. It is estimated that it will take five to 15 years.

Wuhan Port will have an annual throughput of over 100 million tonnes. The major cargo sources for the port are containers, metal ore, iron and steel, petrochemicals and vehicles.

The port, which has a 236.7 km bank-line along the Yangtze River and 112.9 km line along the Han River, will have 23 port areas as its long-term goal. Its cargo throughput will reach 100 million tonnes in 2010 and 168 million tonnes in 2020 if all goes as planned.

It will be set up with different areas specializes in different types of cargo. Within the overall area the Yangluo Port Area will focus on container operation, Qingshan Port Area on petrochemicals, Jinkou Port Area on general goods, Beihu Port Area on steel products.
Source: CargoNews Asia

Shanghai ports had $378.17 billion in foreign trade in the first three quarters of this year.

That is up 20.9% on the same period of last year.

The total included $238.5 billion in export value, up 22.8%, and $139.68 billion dollars in import value, up 17.8%. September was the big month with figures reaching $17.63 billion dollars in September, up 15% year-on-year.

The two major trade partners between January and September were, unusually enough, the Republic of Korea and the European Union.

In the nine months bilateral trade between Shanghai and the European Union ports amounted to $81.88 billion, or 21.7% of Shanghai’s total external trade volume, up 30.2%. The growth rate was 9.3 percentage points higher than the year-earlier level.

According to the local customs sources, foreign-funded businesses made up for 74% of the external trade through Shanghai ports in the first three quarters, with a volume of $240.81 billion, up 20.7%.
Source: People’s Daily Online

Dry-bulk shipping companies that haul iron ore, coal, grains and other bulk commodities are making money.

Eleftherios Papatrifon, chief financial officer of Excel Maritime Carriers, said, ‘We’ve already surpassed profits from last year.’

Along with other dry-bulk shipping executives at an industry conference put on by Jefferies & Co. in New York on Wednesday, he predicted 2008 would be another excellent year.

For example, demand for iron ore is not slowing. China continues to suck in much of the available supply from key source countries such as Brazil and Australia, leaving many other customers scrambling for what’s left. China also became a net importer of coal for the first time this year.

As a result shipbuilding is booming. TBS International has contracted for six new ships to be built in China for its core Asian and South American markets, at about $35.4 million each, with delivery expected in 2009 and 2010.
Source: CNN: Money