Saturday May 21, 2011
Laid-back and cool
By S. S. YOGA
yoga@thestar.com.my
Kota Kinabalu can be a pretty cool place to be; it’s also a great base from which to discover more of Sabah.
Kota Kinabalu is a sprawling and quite charming city. Most of the buildings were erected post-WWII as the British burnt KK (then known as Jesselton) down during the war to prevent it from falling into Japanese hands.
There are just a few survivors from the pre-war era, though — four to be precise. They are the Atkinson Clock Tower, the former Post Office building (which now houses Sabah Tourism) and the Old Welfare building, which unfortunately was razed in a fire a few years back. All that is left standing are the columns that the city authorities have wisely allowed street artists to get creative with
A stretch of beach at Pulau Sapi off Kota Kinabalu.
But hold on, isn’t that only three buildings so far?
Well, the three are what most tourism sites —and probably even the officials — list. There is a fourth, however, and it’s the Gudwara (Sikh temple) that dates back to 1924 on Jalan Mat Salleh.
And how do I know this? Because I had the good fortune of meeting the kindly, humorous and informative Lawrence Singh of Vista Lane Tours. He prepared the itinerary for my short visit and dutifully took me around on a well-organised tour of the city and beyond.
Since I had been to KK a few times before, I was already familiar with some of the places in the itinerary, but Singh had no problem improvising as required. We skipped the Tun Mustapha Tower in Likas, a gleaming circular glass building that is the tallest in KK and can seen from miles away. Instead, we opted for the City Mosque, a resplendent and striking place of worship.
There’s also the Wetlands Centre nearby, a great spot for birdwatchers. We then took a short drive up to Signal Hill to a small observation deck. This is the perfect spot to get a bird’s eye view of the city and the five islands that comprise the Tunku Abdul Rahman National Park beyond it.
A quick spin around the city saw us taking in the sights at the Waterfront where most locals (and visitors) congregate in the evening. Next to it is the famous handicraft market, where you can pick up pearls, handicraft and some of the local snacks — cheaply, if you know how to bargain.
The view of Kota Kinabalu from the Signal Hill observation spot.
There’s also the famous Gaya Street Market (only on Sundays, though) which should keep you happily occupied. All manner of merchandise and goods are available, especially the more touristy souvenirs.
Island-hopping seemed like fun, and it was only 20 minutes away by ferry (either from Jesselton Point or from Sutera Harbour). The biggest island here is Gaya, followed by Manukan, then Sapi, Sulug (the furthest) and Mamutik.
I opted for Sapi. It has a small but beautiful beach, and the snorkelling is good. It’s always a pleasant surprise to see fish and other sea creatures in crystal-clear waters right from the jetty. This is also the island where you can opt for barbecue packages with fresh seafood. We didn’t spend much time here as we wanted to see the iconic attraction of Sabah — Mount Kinabalu and the national park. I did not attempt the mountain as I was in no condition to climb. Moreover, the waiting list is always many months long.
The canopy walk at the Poring Hotsprings.
It takes two to three hours to get to the park from KK, depending on the traffic (many trucks and heavy vehicles ply the winding road). The journey itself offers picturesque views of mountains and valleys. At the foothills, some 15 minutes away from Kinabalu Park, is the little outpost of Nabalu. Here, you will find numerous stalls selling native ware and products, including foodstuff.
Singh pointed out some red pineapples (yes, red). They were really sweet and delicious. There must be something in Sabah’s soil, I thought, when I saw that the sellers also had red bananas and red durian. I guess seeing red is a good thing in Sabah!
Once in the park, we picked a short track that took us to the Botanical Garden area set up by the park authorities. It showcased a good variety of the flora found in the area. Lunch, for us, was at one of the numerous restaurants, chalets and B&B’s found outside the park area. Yes, the Park has a restaurant of its own but the prices are astronomical.
Little wonder we only saw one family dining there.
Our restaurant, Rose Cabin (which actually is a chalet and dormitory with a restaurant attached), laid out a great spread for us. The broccoli soup was tasty; we also had yummy fried chicken with basil, ginger beef, mixed seafood, cucumber shrimp and mixed vegetable. The crispy Japanese cucumber fried with batter from the latter was out of this world. It was a great meal.
Mixed vegetables with the crispy Japanese cucumber leaves on the fringes of the plate.
For dessert, we tried something different — flower dipped in batter and fried. We were told it was from a European tree species that actually grew behind the chalet. I would recommend this place for a meal any day.
Brocolli soup
After the meal, we set off to Poring Hot Springs. It being a Sunday, the place was quite busy. Loads of people were taking the opportunity to soak in the hot mineral pools. I decided to do just the famous canopy walk. It’s a rather steep climb up to the entry point (fee is separate for the hot springs and the canopy walk). The walk was a lot more fun than the one found in Taman Negara, for you get a good sense of what it’s like to be a tree-dweller up in the canopies.
Soon it was time to head back to KK. While we were at the park, the peak of Kinabalu had been covered in heavy clouds because of the early morning rain but as we snaked down the winding road, the sky cleared, and I saw the full majesty of Mount Kinabalu.
However, just as we were trying to find a good spot to stop at so I could get a shot on my camera, it started to rain. Actually, it was more like a dam bursting. Oh well, never mind; like McArthur, I will be back.
Kota Kinabalu is a good base from which to explore the rest of Sabah. Vista Lane Tours ( (60) 8853 8966/77, Fax: (60) 8853 8922, email: salesmgr@vistalanetours.com.my) have various options for you to choose from, including offbeat ones. And they have guides who speak Bahasa Malaysia, English, Mandarin, Cantonese and translators in Korean, Russian, German, French and Dutch.
Tuesday, May 24, 2011
PORT - Port of Tanjung Pelepas
Monday May 16, 2011
PTP on track to handle 7.5 million TEUs this year
KUALA LUMPUR: MMC Corp Bhd’s Port of Tanjung Pelepas (PTP) has emerged as the fastest growing container port in the first quarter of 2011 and is on track to handle 7.5 million twenty-foot equivalent units (TEUs) for the year.
In the first quarter of 2011, PTP’s container traffic grew by 1.79 million TEUs, or 18%, compared with a year ago.
MMC group managing director, Datuk Hasni Harun, said the remarkable growth was mainly due to higher volume from its main customers Maersk Line and Evergreen Group.
“PTP is poised to extend its uninterrupted annual volume growth, with a forecast volume of 7.5 million TEUs in 2011, up 15% from the previous year,” he said in an interview with Bernama.
In fact, the compound annual growth for PTP’s throughput volume for the 10 years since 2001 is at 14%, positioning it as a competitive port.
“PTP’s double-digit growth is comparable with some of the leading ports in the region,” Hasni said, adding that it was ranked 17th among the world’s busiest container ports in 2010.
Going forward, he said, PTP would benefit from an increasing customer focus on cost, which would lead to main liners opting for ports which offered better value proposition.
The productivity and efficiency of PTP’s port operation is also internationally recognised where its average quay crane productivity handling 35 gross crane moves per hour is of world class standard. PTP also has the capacity to handle a sizeable 8.5 million TEUs.
Strategically located at the confluence of the world’s major shipping lanes, PTP has 12 berths stretched over 4.3 km quay length and has the facility to accommodate the latest generation vessels that are generally large in size.
Johor Port, in which MMC owns 100%, also serves as an important origination point for cargo, particularly from the adjoining Pasir Gudang vicinity, he said.
Johor Port manages the largest vegetable oil tank installation in the world and is one of the few ports in Asia which received accreditation from the London Metal Exchange (LME) as an approved LME location for its warehousing activities and facilities.
“This mature port continues to provide a steady annual income stream to MMC, where positive growth was recorded year-on-year,” he said. In 2010, Johor Port handled 15.7 million free weight tonnes (FWT) of conventional cargo consisting of dry bulk, break bulk and liquid bulk cargo, an increase of 9% compared with the previous year.
The port’s container terminal recorded 4% growth in container throughput to 876,000 TEUs driven by higher imports and exports volume. — Bernama
PTP on track to handle 7.5 million TEUs this year
KUALA LUMPUR: MMC Corp Bhd’s Port of Tanjung Pelepas (PTP) has emerged as the fastest growing container port in the first quarter of 2011 and is on track to handle 7.5 million twenty-foot equivalent units (TEUs) for the year.
In the first quarter of 2011, PTP’s container traffic grew by 1.79 million TEUs, or 18%, compared with a year ago.
MMC group managing director, Datuk Hasni Harun, said the remarkable growth was mainly due to higher volume from its main customers Maersk Line and Evergreen Group.
“PTP is poised to extend its uninterrupted annual volume growth, with a forecast volume of 7.5 million TEUs in 2011, up 15% from the previous year,” he said in an interview with Bernama.
In fact, the compound annual growth for PTP’s throughput volume for the 10 years since 2001 is at 14%, positioning it as a competitive port.
“PTP’s double-digit growth is comparable with some of the leading ports in the region,” Hasni said, adding that it was ranked 17th among the world’s busiest container ports in 2010.
Going forward, he said, PTP would benefit from an increasing customer focus on cost, which would lead to main liners opting for ports which offered better value proposition.
The productivity and efficiency of PTP’s port operation is also internationally recognised where its average quay crane productivity handling 35 gross crane moves per hour is of world class standard. PTP also has the capacity to handle a sizeable 8.5 million TEUs.
Strategically located at the confluence of the world’s major shipping lanes, PTP has 12 berths stretched over 4.3 km quay length and has the facility to accommodate the latest generation vessels that are generally large in size.
Johor Port, in which MMC owns 100%, also serves as an important origination point for cargo, particularly from the adjoining Pasir Gudang vicinity, he said.
Johor Port manages the largest vegetable oil tank installation in the world and is one of the few ports in Asia which received accreditation from the London Metal Exchange (LME) as an approved LME location for its warehousing activities and facilities.
“This mature port continues to provide a steady annual income stream to MMC, where positive growth was recorded year-on-year,” he said. In 2010, Johor Port handled 15.7 million free weight tonnes (FWT) of conventional cargo consisting of dry bulk, break bulk and liquid bulk cargo, an increase of 9% compared with the previous year.
The port’s container terminal recorded 4% growth in container throughput to 876,000 TEUs driven by higher imports and exports volume. — Bernama
PORTS - West Port
Monday May 16, 2011
UASC’s largest container vessel calls at Westports
KUALA LUMPUR: UMM Salal, a 13,000 twenty-foot equivalent unit container vessel owned by the United Arab Shipping Company (UASC), made her maiden call at Westports on May 12, marking a momentous landmark in the history of UASC.
The berthing of UMM Salal at Westports is viewed as yet another great effort to promote government-to-government relations and business-to-business partnership.
“We see it as an opportunity for both the Middle East and Malaysia to achieve greater harmony and to further expand commercial prospects,” said Westports chief executive officer Ruben Emir Gnanalingam in a statement yesterday.
He also assured UASC that Westports would continue to provide its utmost support in its endeavour to be a leading global player.
The UMM Salal, which sailed into Westports from Yantian, China, is the first in a series of nine A-13 Class container ships odered by UASC, and is currently being deloyed for North Europe trade.
On hand to receive the mega-sized container vessel on Thursday was Port Klang Authority chairman Datuk Dr Teh Kim Po, Westports executive chairman Tan Sri G. Gnanalingam and Lars Christiansen, vice president, UASC, Asia region.
Ruben said Westports was now on an expansion path and had already commenced reclamation work from Container Terminal 6 to 9.
As for wharf expansion, he said the port operator had completed almost 70% of works on the first 300m for CT 6.
“It is scheduled to be ready in July. We have also ordered eight new cranes which would be delivered between July and Novermber,” he said.
Ruben said Westports would continue construction of another 900m berth. — Bernama
West Port
UASC’s largest container vessel calls at Westports
KUALA LUMPUR: UMM Salal, a 13,000 twenty-foot equivalent unit container vessel owned by the United Arab Shipping Company (UASC), made her maiden call at Westports on May 12, marking a momentous landmark in the history of UASC.
The berthing of UMM Salal at Westports is viewed as yet another great effort to promote government-to-government relations and business-to-business partnership.
“We see it as an opportunity for both the Middle East and Malaysia to achieve greater harmony and to further expand commercial prospects,” said Westports chief executive officer Ruben Emir Gnanalingam in a statement yesterday.
He also assured UASC that Westports would continue to provide its utmost support in its endeavour to be a leading global player.
The UMM Salal, which sailed into Westports from Yantian, China, is the first in a series of nine A-13 Class container ships odered by UASC, and is currently being deloyed for North Europe trade.
On hand to receive the mega-sized container vessel on Thursday was Port Klang Authority chairman Datuk Dr Teh Kim Po, Westports executive chairman Tan Sri G. Gnanalingam and Lars Christiansen, vice president, UASC, Asia region.
Ruben said Westports was now on an expansion path and had already commenced reclamation work from Container Terminal 6 to 9.
As for wharf expansion, he said the port operator had completed almost 70% of works on the first 300m for CT 6.
“It is scheduled to be ready in July. We have also ordered eight new cranes which would be delivered between July and Novermber,” he said.
Ruben said Westports would continue construction of another 900m berth. — Bernama
West Port
LOGISTICS
More investments needed
Logistics sector should be able to meet expected increase in demand
SHAH ALAM: The logistics sector must further invest in technology, capacity and talent to offer more value-added services in line with the uptrend in trade volume.
SME Corp Malaysia chairman Datuk Dr Mohamed Al Amin Abdul Majid said the logistics sector capacity should meet the expected increase in demand in view of the growth of the global economy.
Datuk Dr Mohamed Al Amin
“This is the time where the logistics sector must take advantage because as trade grows, the services offered by the logistics sector are much needed to ensure seamless transportation, storing and distribution of goods.
“For Malaysia, the main challenges are to further improve the services offered towards total logistics services and multi-modal transportation.
“To date, there are about 31,168 companies involved in the logistics sector in the country with 30,766 belonging to the small and medium-size entreprises (SMEs) category,” he said in his speech to officiate the Bumiputra Logistics Entrepreneurs Association AGM last week.
Mohamed Al Amin said as the logistics sector remained as one of the strong pillars of the country’s trade growth and competitiveness while the Government had acted as an “enabler” via its support and various incentives.
The private sector specifically the transportation, storage, and communication industry contributed about 8% to the country’s gross national product last year.
“This year, there are about 219 programmes with financial commitment of RM5.9bil to be implemented via various ministries and agencies.
“For SME Corp, we have launched two programmes early this year namely Business Accelerator and Enrichment & Enhancement Programme to support the SME industry and players.
“PPLB members who are interested in this programme are welcome to join and application can be made online.
“We have also collaborated with a prominent logistics player, Kontena Nasional Bhd, to widen the scope of the logistics sector market via talks, site visits and business-to-business sessions,” he said.
Logistics sector should be able to meet expected increase in demand
SHAH ALAM: The logistics sector must further invest in technology, capacity and talent to offer more value-added services in line with the uptrend in trade volume.
SME Corp Malaysia chairman Datuk Dr Mohamed Al Amin Abdul Majid said the logistics sector capacity should meet the expected increase in demand in view of the growth of the global economy.
Datuk Dr Mohamed Al Amin
“This is the time where the logistics sector must take advantage because as trade grows, the services offered by the logistics sector are much needed to ensure seamless transportation, storing and distribution of goods.
“For Malaysia, the main challenges are to further improve the services offered towards total logistics services and multi-modal transportation.
“To date, there are about 31,168 companies involved in the logistics sector in the country with 30,766 belonging to the small and medium-size entreprises (SMEs) category,” he said in his speech to officiate the Bumiputra Logistics Entrepreneurs Association AGM last week.
Mohamed Al Amin said as the logistics sector remained as one of the strong pillars of the country’s trade growth and competitiveness while the Government had acted as an “enabler” via its support and various incentives.
The private sector specifically the transportation, storage, and communication industry contributed about 8% to the country’s gross national product last year.
“This year, there are about 219 programmes with financial commitment of RM5.9bil to be implemented via various ministries and agencies.
“For SME Corp, we have launched two programmes early this year namely Business Accelerator and Enrichment & Enhancement Programme to support the SME industry and players.
“PPLB members who are interested in this programme are welcome to join and application can be made online.
“We have also collaborated with a prominent logistics player, Kontena Nasional Bhd, to widen the scope of the logistics sector market via talks, site visits and business-to-business sessions,” he said.
DEVELOPMENT CORRIDOR
Irda seeks more allocation
JOHOR BARU: Iskandar Regional Development Authority (Irda) is seeking more funds from the Federal Government in the upcoming Budget 2012.
Chief executive officer Ismail Ibrahim said a submission had been made to the Government and Irda was hoping that it would consider giving more allocation to Irda.
“The allocation will be used for infrastructure projects and other related works such as public amenities,’’ he told a press conference yesterday after the opening of the Wealth of Iskandar Malaysia conference.
He said the extra allocation was important as Iskandar Malaysia would be entering its fifth year and several of the infrastructure projects and iconic developments would be completed in 2012.
Ismail said the money would also be used in programmes specially structured and coordinated for the locals to create opportunities for them and equitable distribution of future wealth in tandem with the progress in Iskandar Malaysia.
Under Budget 2010, the Government had allocated some RM850mil for the five economic growth corridors, mostly in infrastructure.
The country’s first economic growth corridor Iskandar Malaysia had received RM339mil to construct highways, housing areas and public transportation services. The Northern Corridor Economic Region had received RM133mil, East Coast Economic Region RM178mil, Sarawak Corridor of Renewable Energy RM93mil and Sabah Development Corridor RM110mil.
Separately, Ismail said interests from Singapore investors to invest in Iskandar Malaysia remained strong despite the results from the recently-concluded general election in the republic.
“Singapore Prime Minister Lee Hsien Leong has given a strong signal to Singaporeans to invest in Iskandar Malaysia and there is no turning back for them,’’ he said.
Ismail said improvement in bilateral ties between Malaysia and Singapore since Prime Minster Datuk Seri Najib Tun Razak took office in April 2009 would bring economic benefits to the two countries.
He said Irda and other stakeholders had to work even harder to attract investments not only from Singapore but from other parts of the world to Iskandar Malaysia.
Ismail said as of March 2011, Iskandar Malaysia had recorded RM73.24bil in committed investments since its inception in November 2006, with 59% from domestic investors.
JOHOR BARU: Iskandar Regional Development Authority (Irda) is seeking more funds from the Federal Government in the upcoming Budget 2012.
Chief executive officer Ismail Ibrahim said a submission had been made to the Government and Irda was hoping that it would consider giving more allocation to Irda.
“The allocation will be used for infrastructure projects and other related works such as public amenities,’’ he told a press conference yesterday after the opening of the Wealth of Iskandar Malaysia conference.
He said the extra allocation was important as Iskandar Malaysia would be entering its fifth year and several of the infrastructure projects and iconic developments would be completed in 2012.
Ismail said the money would also be used in programmes specially structured and coordinated for the locals to create opportunities for them and equitable distribution of future wealth in tandem with the progress in Iskandar Malaysia.
Under Budget 2010, the Government had allocated some RM850mil for the five economic growth corridors, mostly in infrastructure.
The country’s first economic growth corridor Iskandar Malaysia had received RM339mil to construct highways, housing areas and public transportation services. The Northern Corridor Economic Region had received RM133mil, East Coast Economic Region RM178mil, Sarawak Corridor of Renewable Energy RM93mil and Sabah Development Corridor RM110mil.
Separately, Ismail said interests from Singapore investors to invest in Iskandar Malaysia remained strong despite the results from the recently-concluded general election in the republic.
“Singapore Prime Minister Lee Hsien Leong has given a strong signal to Singaporeans to invest in Iskandar Malaysia and there is no turning back for them,’’ he said.
Ismail said improvement in bilateral ties between Malaysia and Singapore since Prime Minster Datuk Seri Najib Tun Razak took office in April 2009 would bring economic benefits to the two countries.
He said Irda and other stakeholders had to work even harder to attract investments not only from Singapore but from other parts of the world to Iskandar Malaysia.
Ismail said as of March 2011, Iskandar Malaysia had recorded RM73.24bil in committed investments since its inception in November 2006, with 59% from domestic investors.
AVIATION - Air Asia
AirAsia may order 150 A320neo planes
Malaysia-based low-cost airline AirAsia is negotiating an order of between 150 and 175 A320neo planes from Airbus, French newspaper Les Echos reported, citing unidentified sources.
The total amount of the order would be between US$13.6 billion and $15.9 billion, according to official prices. If both parties reach an agreement, the order might be announced in the Bourget aviation fair due to start June 20, the newspaper said.
AirAsia already operates about 100 Airbus jets, of which 90 are the A320, the newspaper said.
The A320neo is a planned fuel-efficient upgrade of Airbus's A320 medium hauler.
"AirAsia had made public its interest in the A320neo though, as a rule, Airbus doesn't comment on any negotiations that may be going on," Airbus spokesman Justin Dubon said
Malaysia-based low-cost airline AirAsia is negotiating an order of between 150 and 175 A320neo planes from Airbus, French newspaper Les Echos reported, citing unidentified sources.
The total amount of the order would be between US$13.6 billion and $15.9 billion, according to official prices. If both parties reach an agreement, the order might be announced in the Bourget aviation fair due to start June 20, the newspaper said.
AirAsia already operates about 100 Airbus jets, of which 90 are the A320, the newspaper said.
The A320neo is a planned fuel-efficient upgrade of Airbus's A320 medium hauler.
"AirAsia had made public its interest in the A320neo though, as a rule, Airbus doesn't comment on any negotiations that may be going on," Airbus spokesman Justin Dubon said
Tuesday, May 17, 2011
LOGISTICS - Customs Bonded Truck Services
Oman Air Cargo introduces Pan-GCC trucking services
During the launch of Oman Air Cargo's Pan-GCC custom bonded truck services.
Oman Air Cargo unveiled its Pan-GCC custom bonded truck services connecting Muscat with Salalah and other GCC countries. Hailed as a milestone in the annals of Oman Air achievements, this service will be effective from 1st June 2011.
It is the first time in Oman's freight history that a scheduled custom bonded trucking service is being introduced for customer's use, connecting cargo from one airport to another both domestically as well as to selected airports in the GCC.
The trucking services of Oman's National Carrier will be operated by its business partner M/s. Able Logistics Group (Oman) LLC, providing airport to airport connectivity which is expected to play a major role in improving export and import growth in the country by adding faster and more efficient connections.
Able logistic Group (Oman) LLC, is an Omani registered company with established transport and freight forwarding roots in the Sultanate of Oman. Able Logistics Group (Oman) is specialized in transporting customs bonded cargo from airport to airport and non-bonded cargoes cargo throughout the GCC and Middle East Region.
Oman Air will link from and to its cargo hubs in Muscat and Salalah to all the Gulf Cooperation Council Countries, namely, United Arab Emirates (Dubai, Sharjah and Abu Dhabi airports), Kingdom of Saudi Arabia (King Fahad Abdul Aziz Ad-Dammam, King Khalid Riyadh and King Abdul Aziz Jeddah airports), Kuwait (Kuwait International Airport), Bahrain (Bahrain International Airport) and Qatar (Doha International Airport). The domestic markets that will be covered under this service are: Salalah and Sohar, followed soon by Adam, Nizwa, Duqm and Sur.
Oman Air will complete its present Online destinations Network with additional new Offline destinations adding Ground Transport Services along with its Flight Programmes.
Speaking on the occasion of unveiling the new service, Abdulrazaq Alraisi, Chief Commercial Officer, Oman Air, said, "We are happy to join hands with Able Logistics to provide Pan GCC trucking services. We are confident that the local importers and exporters will welcome our Road Feeder product and turn this into their advantage to grow their businesses. The Road Feeder Services (RFS) will be offered as scheduled services while keeping open the option of adhoc requests. We are sure that this new service will complement and supplement our narrow bodied aircrafts flying within the gulf region."
Mohammed Noor Mohammed, Chairman of Able Logistics LLC,Oman, said, "We are proud to be partnered with the National Carrier of Oman in bringing our service to an ever wider customer base. Able Logistics LLC is committed to offering transportation solutions throughout the region to its customers. Able Logistics's business philosophy has always been to provide its customers with reliable, efficient and cost effective transportation services by eliminating costly delays, by reducing transit times and above all maintaining product integrity by delivering its customers cargoes safely to their final destination."
During the launch of Oman Air Cargo's Pan-GCC custom bonded truck services.
Oman Air Cargo unveiled its Pan-GCC custom bonded truck services connecting Muscat with Salalah and other GCC countries. Hailed as a milestone in the annals of Oman Air achievements, this service will be effective from 1st June 2011.
It is the first time in Oman's freight history that a scheduled custom bonded trucking service is being introduced for customer's use, connecting cargo from one airport to another both domestically as well as to selected airports in the GCC.
The trucking services of Oman's National Carrier will be operated by its business partner M/s. Able Logistics Group (Oman) LLC, providing airport to airport connectivity which is expected to play a major role in improving export and import growth in the country by adding faster and more efficient connections.
Able logistic Group (Oman) LLC, is an Omani registered company with established transport and freight forwarding roots in the Sultanate of Oman. Able Logistics Group (Oman) is specialized in transporting customs bonded cargo from airport to airport and non-bonded cargoes cargo throughout the GCC and Middle East Region.
Oman Air will link from and to its cargo hubs in Muscat and Salalah to all the Gulf Cooperation Council Countries, namely, United Arab Emirates (Dubai, Sharjah and Abu Dhabi airports), Kingdom of Saudi Arabia (King Fahad Abdul Aziz Ad-Dammam, King Khalid Riyadh and King Abdul Aziz Jeddah airports), Kuwait (Kuwait International Airport), Bahrain (Bahrain International Airport) and Qatar (Doha International Airport). The domestic markets that will be covered under this service are: Salalah and Sohar, followed soon by Adam, Nizwa, Duqm and Sur.
Oman Air will complete its present Online destinations Network with additional new Offline destinations adding Ground Transport Services along with its Flight Programmes.
Speaking on the occasion of unveiling the new service, Abdulrazaq Alraisi, Chief Commercial Officer, Oman Air, said, "We are happy to join hands with Able Logistics to provide Pan GCC trucking services. We are confident that the local importers and exporters will welcome our Road Feeder product and turn this into their advantage to grow their businesses. The Road Feeder Services (RFS) will be offered as scheduled services while keeping open the option of adhoc requests. We are sure that this new service will complement and supplement our narrow bodied aircrafts flying within the gulf region."
Mohammed Noor Mohammed, Chairman of Able Logistics LLC,Oman, said, "We are proud to be partnered with the National Carrier of Oman in bringing our service to an ever wider customer base. Able Logistics LLC is committed to offering transportation solutions throughout the region to its customers. Able Logistics's business philosophy has always been to provide its customers with reliable, efficient and cost effective transportation services by eliminating costly delays, by reducing transit times and above all maintaining product integrity by delivering its customers cargoes safely to their final destination."
Monday, May 16, 2011
AIRPORT - Excellent Management
Ethiopian Airports Enterprise Wins Gold Medal for Business Excellence
By Yonas Abiye
Addis Ababa, May 16, 2011 (Ezega.com) - Ethiopian Airports Enterprise (EAE) won gold medal at the 14th International Transport Award for business excellence named ‘the new millennium award’ in recognition of its airline service, freight logistics, cargo service, international container terminal service, and marine transport service.
The golden award was presented to EAE last week in Paris organized by Trade Leader’s Club that has more than 14,000 members in 124 countries, comprising all the production and services fields.
Headquartered in the Spanish capital of Madrid, the Club was founded in 1978 with the objective of establishing a tie among various companies.
Regarding the award, EAE’s Chef Executive Officer, Shiferaw Alemu, told reporters on Friday that the business excellence award will encourage the enterprise to do more and maintain Bole International Airport as one of the finest and well equipped runways and terminals in Africa.
He also indicated that the enterprise was chosen by the Club as winner of this year’s best airlines award out of several contenders, including from those from Mexico, Turkey, Nigeria, Malaysia and other 18 countries.
According Shiferaw, the club acclaimed the airport as the top-ranking airport in Africa for its consistently and dynamically supporting airlines’ route development through the airport’s wide ranging services.
The CEO also indicated the services rendered by all airports throughout Ethiopia, particularly Bole international airport, is the reason for this award. “The effort being made to make Bole International Airport the traffic hub of East Africa is a crucial factor in this award,” he added.
In addition to Bole International Airport, the Enterprise EAE administers 17 airports across the country, out of which, four of them are international and the rest are domestic. Currently, the enterprise is building its 18th airport in Kombolcha town.
Regarded as one of the largest and fastest growing airlines in Africa, Ethiopian Airlines received more than four awards since 2007 in recognition of its long-haul operations.
The EAE chief told Ezega.com that EAE is undertaking a huge expansion project to upgrade the overall capacity of Bole International Airport at a cost of some 1.2 billion birr. This will enable the airport to accommodate 25 new flights.
Upon completion of the project, the airport will increase its takeoff weight from the existing 19 to 41 aircrafts simultaneously, Sheferaw said.
According to the CEO, the airport will also have a capacity of accommodating heavy planes such as Boeing 747 and ‘triple seven’, in addition to curbing congestion of the ever increasing traffic flow.
______________________________________
Yonas Abiye is Addis Ababa based reporter for Ezega.com.
By Yonas Abiye
Addis Ababa, May 16, 2011 (Ezega.com) - Ethiopian Airports Enterprise (EAE) won gold medal at the 14th International Transport Award for business excellence named ‘the new millennium award’ in recognition of its airline service, freight logistics, cargo service, international container terminal service, and marine transport service.
The golden award was presented to EAE last week in Paris organized by Trade Leader’s Club that has more than 14,000 members in 124 countries, comprising all the production and services fields.
Headquartered in the Spanish capital of Madrid, the Club was founded in 1978 with the objective of establishing a tie among various companies.
Regarding the award, EAE’s Chef Executive Officer, Shiferaw Alemu, told reporters on Friday that the business excellence award will encourage the enterprise to do more and maintain Bole International Airport as one of the finest and well equipped runways and terminals in Africa.
He also indicated that the enterprise was chosen by the Club as winner of this year’s best airlines award out of several contenders, including from those from Mexico, Turkey, Nigeria, Malaysia and other 18 countries.
According Shiferaw, the club acclaimed the airport as the top-ranking airport in Africa for its consistently and dynamically supporting airlines’ route development through the airport’s wide ranging services.
The CEO also indicated the services rendered by all airports throughout Ethiopia, particularly Bole international airport, is the reason for this award. “The effort being made to make Bole International Airport the traffic hub of East Africa is a crucial factor in this award,” he added.
In addition to Bole International Airport, the Enterprise EAE administers 17 airports across the country, out of which, four of them are international and the rest are domestic. Currently, the enterprise is building its 18th airport in Kombolcha town.
Regarded as one of the largest and fastest growing airlines in Africa, Ethiopian Airlines received more than four awards since 2007 in recognition of its long-haul operations.
The EAE chief told Ezega.com that EAE is undertaking a huge expansion project to upgrade the overall capacity of Bole International Airport at a cost of some 1.2 billion birr. This will enable the airport to accommodate 25 new flights.
Upon completion of the project, the airport will increase its takeoff weight from the existing 19 to 41 aircrafts simultaneously, Sheferaw said.
According to the CEO, the airport will also have a capacity of accommodating heavy planes such as Boeing 747 and ‘triple seven’, in addition to curbing congestion of the ever increasing traffic flow.
______________________________________
Yonas Abiye is Addis Ababa based reporter for Ezega.com.
Fuel Cost - Hedging
SIA hedges 20% of 2011-12 jet fuel needs
Singapore Airlines chief executive Goh Choon Phong said the carrier was hedged for 20 percent of its jet fuel requirements in the current fiscal 2012 year, reported Dow Jones Newswires.
"For the full year this year we are hedged at roughly 20 percent of our jet fuel requirement, and it's roughly hedged at US$130 per barrel," Goh said.
The airline has hedging flexibility of 20 percent to 60 percent for the full year, he added.
Goh also said the airline is open to merger and acquisition opportunities in Asia if opportunities arise.
Singapore Airlines chief executive Goh Choon Phong said the carrier was hedged for 20 percent of its jet fuel requirements in the current fiscal 2012 year, reported Dow Jones Newswires.
"For the full year this year we are hedged at roughly 20 percent of our jet fuel requirement, and it's roughly hedged at US$130 per barrel," Goh said.
The airline has hedging flexibility of 20 percent to 60 percent for the full year, he added.
Goh also said the airline is open to merger and acquisition opportunities in Asia if opportunities arise.
Impact of Fuel Price Increase
High fuel costs pushes NOL into the red
Rising fuel costs and soft trade during the Chinese New Year period sent Neptune Orient Lines (NOL) sailing into the red for the first quarter.
The shipping giant posted a net loss of US$10 million for the period to April 8 - a sharp improvement on the US$98 million deficit recorded last year, although it still came after three consecutive profitable quarters, reported Straits Times.
The first-quarter result was also better than the predicted loss of $22.9 million from three analysts polled by Bloomberg.
"In spite of year-over-year volume growth, a softer-than-expected Lunar New Year period and rising fuel costs have interrupted our momentum,'' said NOL president and chief executive Ron Widdows.
NOL has posted net year-on-year quarterly profits since the first quarter last year, fuelled by a strong recovery in trade after the global recession.
In the first three months of this year, revenue grew 16 per cent from a year ago to $2.4 billion.
But costs rose 12 per cent from the first quarter last year to $2.25 billion, mainly stemming from higher volumes and increased bunker charges.
Revenue at APL, NOL's core container line shipping business, grew 15 per cent to $2.1 billion over the same period last year.
Container shipping volume rose nine per cent to 764,000 FEUs, mainly due to higher volumes on the intra-Asia and Asia-Europe trade lanes, although freight rates declined on both trades.
The average revenue per FEU grew three per cent from a year ago to $2,598, mainly due to improved freight rates on the transpacific trade route.
APL president Eng Aik Meng said: "Our emphasis must remain on operating efficiency, as well as slow-steaming our ships to conserve fuel and counteract the effect of rising fuel prices, which were 28 per cent higher per metric tonne in the first quarter of 2011 than they were in 2010.''
The company's logistics business posted a first-quarter revenue of $368 million, up 24 per cent from a year ago, on higher volumes and recovering rates across the various segments of its business.
The shipping industry has faced rising fuel prices and uncertainty over new vessels coming onstream, which could depress freight rates.
Oil prices breached $100 a barrel in March as political unrest swept parts of the Arab world, although they have now inched back down to $98.
NOL said market conditions remain uncertain.
"Increased operating costs - particularly related to fuel cost increases - and competitive pressure on rates are expected to continue for the near term. Should these conditions persist, our results will be negatively impacted.''
Rising fuel costs and soft trade during the Chinese New Year period sent Neptune Orient Lines (NOL) sailing into the red for the first quarter.
The shipping giant posted a net loss of US$10 million for the period to April 8 - a sharp improvement on the US$98 million deficit recorded last year, although it still came after three consecutive profitable quarters, reported Straits Times.
The first-quarter result was also better than the predicted loss of $22.9 million from three analysts polled by Bloomberg.
"In spite of year-over-year volume growth, a softer-than-expected Lunar New Year period and rising fuel costs have interrupted our momentum,'' said NOL president and chief executive Ron Widdows.
NOL has posted net year-on-year quarterly profits since the first quarter last year, fuelled by a strong recovery in trade after the global recession.
In the first three months of this year, revenue grew 16 per cent from a year ago to $2.4 billion.
But costs rose 12 per cent from the first quarter last year to $2.25 billion, mainly stemming from higher volumes and increased bunker charges.
Revenue at APL, NOL's core container line shipping business, grew 15 per cent to $2.1 billion over the same period last year.
Container shipping volume rose nine per cent to 764,000 FEUs, mainly due to higher volumes on the intra-Asia and Asia-Europe trade lanes, although freight rates declined on both trades.
The average revenue per FEU grew three per cent from a year ago to $2,598, mainly due to improved freight rates on the transpacific trade route.
APL president Eng Aik Meng said: "Our emphasis must remain on operating efficiency, as well as slow-steaming our ships to conserve fuel and counteract the effect of rising fuel prices, which were 28 per cent higher per metric tonne in the first quarter of 2011 than they were in 2010.''
The company's logistics business posted a first-quarter revenue of $368 million, up 24 per cent from a year ago, on higher volumes and recovering rates across the various segments of its business.
The shipping industry has faced rising fuel prices and uncertainty over new vessels coming onstream, which could depress freight rates.
Oil prices breached $100 a barrel in March as political unrest swept parts of the Arab world, although they have now inched back down to $98.
NOL said market conditions remain uncertain.
"Increased operating costs - particularly related to fuel cost increases - and competitive pressure on rates are expected to continue for the near term. Should these conditions persist, our results will be negatively impacted.''
FUEL INCREASE & AVIATION
Singapore Airlines Q4 profit slammed by fuel costs
Soaring oil prices pushed Singapore Airlines’ fourth-quarter net profit sharply lower and the carrier warned of uncertainties ahead as the global economic recovery sputters and Japan recovers from the effects of a devastating earthquake.
Net profit for the three months ended March 31 was down 38.5 percent at US$137.94 million compared with $224 million a year earlier. Earnings were significantly lower than the $235.5 million average forecast in a Dow Jones Newswires poll of five analysts.
Group revenue rose eight percent year-on-year to $2.9 billion but was outpaced by an 11 percent rise in expenditure, the airline said, adding fuel costs rose to $1 billion in the fourth quarter this year from $803.82 million in the same quarter a year earlier.
The average price of jet fuel, which accounts for a third of the airline's costs, surged by more than 25 percent between January and April this year to $140 per barrel, the highest level since the last peak at $174 per barrel recorded in July 2008, it said.
"While there has been some respite in the past week, jet fuel prices are likely to remain high and volatile in the near term," the airline said.
For the full fiscal year, the airline reported nearly a five-fold increase in net profit to $879.24 million from $174.24 million in the year that ended March 2010, when the global financial crisis roiled the international aviation industry.
"The twin challenges of near term weakness in load factors and high fuel prices will adversely affect operating performance of airlines. The company remains committed to staying lean and competitive. The company will be vigilant in cost management and closely monitor patterns of demand and adjust capacity accordingly," Singapore Airlines said in the statement.
During the January-March quarter, Singapore Airlines decommissioned one B747-400 aircraft. As at 31 March 2011, its operating fleet comprised 108 passenger aircraft with an average age of six years and three months, the company said in the statement.
In the new fiscal year, the company expects to take delivery of eight Airbus A380-800 aircraft and decommission five Boeing B777s and all seven of its B747-400s, bringing down its operating fleet to 104 aircraft by March 2012.
"The reduction in fleet size will be more than offset by increased utilisation to produce passenger capacity growth of six percent in available seat-kilometres for the 2011-12 financial year," it said.
************************
Oil costs push Turkish Airlines into red
Turkish Airlines , Turkey's flag carrier, posted a first-quarter net loss of US$209 million, steeper than expected, after it was stung by higher oil prices, reported Reuters.
It had been forecast to post a loss of $164.61 million, according to the consensus forecast in a Reuters poll, and after net profit of $75.86 million in the first quarter of 2010.
Analysts have said the carrier, which is expanding at a rapid pace, is seeing its expenses rise much faster than capacity.
***************************
Thai Airways Q1 profit plunges by 94%
Thai Airways International first-quarter net profit plunged 94 percent from a year earlier, due mainly to a foreign-exchange loss, reported Dow Jones Newswires.
For the three months ended March 31, the national carrier reported a net profit of US$20.4 million, down from $349.67 million a year earlier.
Thai Airways booked a $111.15 million foreign-exchange loss compared with a $118.56 million foreign exchange gain recorded in the first quarter of last year. The carrier recorded a foreign-exchange loss in the quarter because the baht weakened against the euro, which is the main denomination of the firm's foreign debt.
The national carrier's expenses, which rose 7.5 percent year-on-year to $1.58 billion, was also a cause of the sharp decline in its first-quarter net profit, it said.
"The major factor causing a dramatic increase in cost is the rapid rise in average jet fuel price, which was 33.5 percent higher than the first quarter last year," the company said.
It said Japan's recent massive quake also took a toll on the company's earnings.
Soaring oil prices pushed Singapore Airlines’ fourth-quarter net profit sharply lower and the carrier warned of uncertainties ahead as the global economic recovery sputters and Japan recovers from the effects of a devastating earthquake.
Net profit for the three months ended March 31 was down 38.5 percent at US$137.94 million compared with $224 million a year earlier. Earnings were significantly lower than the $235.5 million average forecast in a Dow Jones Newswires poll of five analysts.
Group revenue rose eight percent year-on-year to $2.9 billion but was outpaced by an 11 percent rise in expenditure, the airline said, adding fuel costs rose to $1 billion in the fourth quarter this year from $803.82 million in the same quarter a year earlier.
The average price of jet fuel, which accounts for a third of the airline's costs, surged by more than 25 percent between January and April this year to $140 per barrel, the highest level since the last peak at $174 per barrel recorded in July 2008, it said.
"While there has been some respite in the past week, jet fuel prices are likely to remain high and volatile in the near term," the airline said.
For the full fiscal year, the airline reported nearly a five-fold increase in net profit to $879.24 million from $174.24 million in the year that ended March 2010, when the global financial crisis roiled the international aviation industry.
"The twin challenges of near term weakness in load factors and high fuel prices will adversely affect operating performance of airlines. The company remains committed to staying lean and competitive. The company will be vigilant in cost management and closely monitor patterns of demand and adjust capacity accordingly," Singapore Airlines said in the statement.
During the January-March quarter, Singapore Airlines decommissioned one B747-400 aircraft. As at 31 March 2011, its operating fleet comprised 108 passenger aircraft with an average age of six years and three months, the company said in the statement.
In the new fiscal year, the company expects to take delivery of eight Airbus A380-800 aircraft and decommission five Boeing B777s and all seven of its B747-400s, bringing down its operating fleet to 104 aircraft by March 2012.
"The reduction in fleet size will be more than offset by increased utilisation to produce passenger capacity growth of six percent in available seat-kilometres for the 2011-12 financial year," it said.
************************
Oil costs push Turkish Airlines into red
Turkish Airlines , Turkey's flag carrier, posted a first-quarter net loss of US$209 million, steeper than expected, after it was stung by higher oil prices, reported Reuters.
It had been forecast to post a loss of $164.61 million, according to the consensus forecast in a Reuters poll, and after net profit of $75.86 million in the first quarter of 2010.
Analysts have said the carrier, which is expanding at a rapid pace, is seeing its expenses rise much faster than capacity.
***************************
Thai Airways Q1 profit plunges by 94%
Thai Airways International first-quarter net profit plunged 94 percent from a year earlier, due mainly to a foreign-exchange loss, reported Dow Jones Newswires.
For the three months ended March 31, the national carrier reported a net profit of US$20.4 million, down from $349.67 million a year earlier.
Thai Airways booked a $111.15 million foreign-exchange loss compared with a $118.56 million foreign exchange gain recorded in the first quarter of last year. The carrier recorded a foreign-exchange loss in the quarter because the baht weakened against the euro, which is the main denomination of the firm's foreign debt.
The national carrier's expenses, which rose 7.5 percent year-on-year to $1.58 billion, was also a cause of the sharp decline in its first-quarter net profit, it said.
"The major factor causing a dramatic increase in cost is the rapid rise in average jet fuel price, which was 33.5 percent higher than the first quarter last year," the company said.
It said Japan's recent massive quake also took a toll on the company's earnings.
MARITIME - Ships Design
Harnessing the sun, the wind and the sea with E/S Orcelle
9 May 2011 | By Stuart Nathan
Dream Boat: A concept for a renewably powered cargo vessel could help drive emissions-free shipping.
The Irrawaddy dolphin is a strange-looking beast. Round-headed, snub-nosed and a little smaller than a human, the critically endangered marine mammal lives around the coasts and estuaries of the Bay of Bengal, Brunei and Malaysia, and has an endearing habit of helping fishermen out in exchange for some of their catch. But this odd, rare animal is lending its name to an even stranger-looking, but much larger, sea-goer: a zero-emissions, hydrogen-powered concept for a cargo ship designed by Scandinavian shipping company Wallenius Wilhelmsen Logistics (WWL).
The E/S Orcelle (the French name for the Irrawaddy dolphin) is a bold concept to explore ways to reduce the environmental impact of cargo shipping, cutting or even eliminating carbon emissions while also tackling other factors associated with ships that are regularly loaded and unloaded in different ports throughout their lifetime. Even its designation is a nod towards a green agenda E/S stands for ’environmentally sound’. Although WWL stresses that Orcelle is a concept, and will likely never be built in its entirety, it intends to use the components of its design to improve future forms of cargo shipping. ’While futuristic in its concept, we believe the E/S Orcelle represents the achievable goal of building an environmentally friendly cargo ship,’ said WWL chief executive, Nils Dyvik. ’We are determined to be at the forefront, along with the World Wildlife Fund, to help and protect marine life on the high seas.’
“WWL’s E/S Orcelle requires less energy than a conventional ship to push it through the water”
WWL, which operates from Sweden and Norway, is no small-fry shipping company it is one of Europe’s largest movers of cars from country to country, with clients, including Jaguar Land Rover, transporting some 1.7 million vehicles by sea every year. Therefore, Orcelle is visualised as a large ship. Designed to carry 13,000 tons of cargo on eight decks with a total area of 85,000m2, the ship could transport 10,000 cars 50 per cent more than a conventional car carrier. The design challenge is to do this using only renewable resources, and without any need for ballast water.
Unique: the pentamaran hull has five elements, giving the ship extra stability and removing the need for ballast water when unladen
This is becoming an increasing concern for shipping companies, as ballast is a major source of biological pollution. Conventional ships are designed to be stable when fully laden, so when they are unloaded, ballast tanks need to be filled to ensure the ship sits at the right level in the water. Unloading the ballast water elsewhere in the world introduces any marine organisms that have been sucked into the tanks into a foreign environment, which can lead to trouble for the local ecosystem.
The Orcelle, therefore, combines hull design, propulsion systems, and a variety of energy-harvesting methods to come up with a ship that looks nothing like anything currently in the sea.
For a start, Orcelle is a pentamaran it has five hulls. This is a progression from the WWL design team’s original concept, a streamlined trimaran. Compared with conventional monohull designs, this form provides greater stability, less drag and improved utilisation of energy, the team said.
However, a trimaran isn’t the best shape for a cargo ship because there is limited scope in a three-hull vessel for cargo space. This led to the two outside hulls being shrunk down to outriggers, or sponsons, in the next design stage. Finally, the designers opted to split the sponsons, with two at the bow of the vessel and two at the stern, bracketing a long, slender main hull. The slim sponsons, shaped something like a section of an aircraft wing positioned edge-on pointing downwards into the water, provide extra stability, meaning that the ship will not need ballast water. ’In addition,’ the team said, ’the pentamaran hull design will contribute to the improved utilisation of energy and clean flow of water around the vessel.’
The hulls are made from aluminium and thermoplastic composites, rather than carbon steel, as they are lighter, more fatigue-resistant, easier to shape, more recyclable and require less maintenance. The lighter weight, combined with the hull shape, means that the Orcelle requires less energy than a conventional ship to push it through the water. This low energy requirement is crucial if the ship is to gather all of its motive power from renewable sources. ’We have observed various emerging technologies that enable smaller ships to utilise energy from renewable sources,’ the company said. ’We are keeping a close watch on emerging trends and are hopeful that these solutions may become applicable to larger vessels in the future.’
One source of energy would come as no surprise to any pre-20th century sailor the wind. Orcelle has three rigid sails, each with an area of 1,400m2 and made from composite material, which can be rotated and positioned to catch the wind. Moreover, these sails would each incorporate 800m2 of photovoltaic panels to generate a maximum of 2,500kW of solar electricity; when not used for propulsion, the sails would be folded back against the upper deck of the ship to maximise the amount of solar energy they receive.
Sailing on the Seven Seas: Orcelle’s rigid sails can be positioned to catch maximum wind, and also incorporate large photovoltaic panels
More electricity-generating components are located underneath the ship. Joining the sponsons to the keel of the main hull are 12 horizontal fins, three on each sponson. These are configured to move up and down as the ship moves through the water, with the movement converted into electricity by hydraulic motors.
The solar and wave energy is planned to be stored in the form of hydrogen, obtained by electrolytic splitting of seawater; this, WWL concedes, will require the development of new technologies. The hydrogen would be converted back to electricity in on-board fuel cells with a total output of 10,000kW; these, the design team said, would provide about half of the energy used to actually propel the ship.
As well as the composite sails, Orcelle makes its way through the water using variable-speed electric propulsion systems, known as pods. The vessel would carry two pods, one at either end of the main hull and each incorporating a motor, gearbox and propellor. Pod systems already well established on large ships and produced by companies such as Rolls-Royce, which is providing pods for the Queen Elizabeth-class aircraft carriers currently under construction can turn through 360°, making them an integral part of the ship’s manoeuvring systems. The other components of these two rudders at the stern of the ship are also operated by electrical and hydraulic energy.
Weighty issue: Orcelle is visualised as a large ship designed to transport 10,000 cars
Other energy-consuming systems would be a propulsion system operating through flapping the keel-mounted fins when they are not being moved by waves, along with shipboard utilities such as lighting, ventilation, control, navigation and equipment operation. These will run off the electricity generated by the ship, while other systems, such as the raising and lowering of the stern ramp and adjusting the height of the cargo decks to accommodate different types of vehicles, would use hydraulic power.
Conceptual work began on the Orcelle in 2004, with the ship first presented a year later. Since then, WWL has kept working on the project, bringing in new designers and technologies via ’Orcelle grants’, which now also includes concepts for an emissions-free cargo terminal. It envisages an in-service date for an Orcelle-like ship around 2025.
the data - cargo concept
The E/S Orcelle looks nothing like anything currently in the seaLength: 250m
Height: 40m
Total height with sails erected: 95m
Beam: 50m
Draught: 9m
Design speed (max): 20 knots
Design speed (service): 15 knots
Lightweight: 21,000 tonnes
Maximum deadweight capacity: 13,000 tonnes
Pod propulsion: 2 x 4,000kW
Sails: 3 x 1,400m2
Fins: 12 x 210m2
Eight decks, three with adjustable height
Read more: http://www.theengineer.co.uk/in-depth/analysis/harnessing-the-sun-the-wind-and-the-sea-with-e/s-orcelle/1008538.article#ixzz1MWBDjgCs
9 May 2011 | By Stuart Nathan
Dream Boat: A concept for a renewably powered cargo vessel could help drive emissions-free shipping.
The Irrawaddy dolphin is a strange-looking beast. Round-headed, snub-nosed and a little smaller than a human, the critically endangered marine mammal lives around the coasts and estuaries of the Bay of Bengal, Brunei and Malaysia, and has an endearing habit of helping fishermen out in exchange for some of their catch. But this odd, rare animal is lending its name to an even stranger-looking, but much larger, sea-goer: a zero-emissions, hydrogen-powered concept for a cargo ship designed by Scandinavian shipping company Wallenius Wilhelmsen Logistics (WWL).
The E/S Orcelle (the French name for the Irrawaddy dolphin) is a bold concept to explore ways to reduce the environmental impact of cargo shipping, cutting or even eliminating carbon emissions while also tackling other factors associated with ships that are regularly loaded and unloaded in different ports throughout their lifetime. Even its designation is a nod towards a green agenda E/S stands for ’environmentally sound’. Although WWL stresses that Orcelle is a concept, and will likely never be built in its entirety, it intends to use the components of its design to improve future forms of cargo shipping. ’While futuristic in its concept, we believe the E/S Orcelle represents the achievable goal of building an environmentally friendly cargo ship,’ said WWL chief executive, Nils Dyvik. ’We are determined to be at the forefront, along with the World Wildlife Fund, to help and protect marine life on the high seas.’
“WWL’s E/S Orcelle requires less energy than a conventional ship to push it through the water”
WWL, which operates from Sweden and Norway, is no small-fry shipping company it is one of Europe’s largest movers of cars from country to country, with clients, including Jaguar Land Rover, transporting some 1.7 million vehicles by sea every year. Therefore, Orcelle is visualised as a large ship. Designed to carry 13,000 tons of cargo on eight decks with a total area of 85,000m2, the ship could transport 10,000 cars 50 per cent more than a conventional car carrier. The design challenge is to do this using only renewable resources, and without any need for ballast water.
Unique: the pentamaran hull has five elements, giving the ship extra stability and removing the need for ballast water when unladen
This is becoming an increasing concern for shipping companies, as ballast is a major source of biological pollution. Conventional ships are designed to be stable when fully laden, so when they are unloaded, ballast tanks need to be filled to ensure the ship sits at the right level in the water. Unloading the ballast water elsewhere in the world introduces any marine organisms that have been sucked into the tanks into a foreign environment, which can lead to trouble for the local ecosystem.
The Orcelle, therefore, combines hull design, propulsion systems, and a variety of energy-harvesting methods to come up with a ship that looks nothing like anything currently in the sea.
For a start, Orcelle is a pentamaran it has five hulls. This is a progression from the WWL design team’s original concept, a streamlined trimaran. Compared with conventional monohull designs, this form provides greater stability, less drag and improved utilisation of energy, the team said.
However, a trimaran isn’t the best shape for a cargo ship because there is limited scope in a three-hull vessel for cargo space. This led to the two outside hulls being shrunk down to outriggers, or sponsons, in the next design stage. Finally, the designers opted to split the sponsons, with two at the bow of the vessel and two at the stern, bracketing a long, slender main hull. The slim sponsons, shaped something like a section of an aircraft wing positioned edge-on pointing downwards into the water, provide extra stability, meaning that the ship will not need ballast water. ’In addition,’ the team said, ’the pentamaran hull design will contribute to the improved utilisation of energy and clean flow of water around the vessel.’
The hulls are made from aluminium and thermoplastic composites, rather than carbon steel, as they are lighter, more fatigue-resistant, easier to shape, more recyclable and require less maintenance. The lighter weight, combined with the hull shape, means that the Orcelle requires less energy than a conventional ship to push it through the water. This low energy requirement is crucial if the ship is to gather all of its motive power from renewable sources. ’We have observed various emerging technologies that enable smaller ships to utilise energy from renewable sources,’ the company said. ’We are keeping a close watch on emerging trends and are hopeful that these solutions may become applicable to larger vessels in the future.’
One source of energy would come as no surprise to any pre-20th century sailor the wind. Orcelle has three rigid sails, each with an area of 1,400m2 and made from composite material, which can be rotated and positioned to catch the wind. Moreover, these sails would each incorporate 800m2 of photovoltaic panels to generate a maximum of 2,500kW of solar electricity; when not used for propulsion, the sails would be folded back against the upper deck of the ship to maximise the amount of solar energy they receive.
Sailing on the Seven Seas: Orcelle’s rigid sails can be positioned to catch maximum wind, and also incorporate large photovoltaic panels
More electricity-generating components are located underneath the ship. Joining the sponsons to the keel of the main hull are 12 horizontal fins, three on each sponson. These are configured to move up and down as the ship moves through the water, with the movement converted into electricity by hydraulic motors.
The solar and wave energy is planned to be stored in the form of hydrogen, obtained by electrolytic splitting of seawater; this, WWL concedes, will require the development of new technologies. The hydrogen would be converted back to electricity in on-board fuel cells with a total output of 10,000kW; these, the design team said, would provide about half of the energy used to actually propel the ship.
As well as the composite sails, Orcelle makes its way through the water using variable-speed electric propulsion systems, known as pods. The vessel would carry two pods, one at either end of the main hull and each incorporating a motor, gearbox and propellor. Pod systems already well established on large ships and produced by companies such as Rolls-Royce, which is providing pods for the Queen Elizabeth-class aircraft carriers currently under construction can turn through 360°, making them an integral part of the ship’s manoeuvring systems. The other components of these two rudders at the stern of the ship are also operated by electrical and hydraulic energy.
Weighty issue: Orcelle is visualised as a large ship designed to transport 10,000 cars
Other energy-consuming systems would be a propulsion system operating through flapping the keel-mounted fins when they are not being moved by waves, along with shipboard utilities such as lighting, ventilation, control, navigation and equipment operation. These will run off the electricity generated by the ship, while other systems, such as the raising and lowering of the stern ramp and adjusting the height of the cargo decks to accommodate different types of vehicles, would use hydraulic power.
Conceptual work began on the Orcelle in 2004, with the ship first presented a year later. Since then, WWL has kept working on the project, bringing in new designers and technologies via ’Orcelle grants’, which now also includes concepts for an emissions-free cargo terminal. It envisages an in-service date for an Orcelle-like ship around 2025.
the data - cargo concept
The E/S Orcelle looks nothing like anything currently in the seaLength: 250m
Height: 40m
Total height with sails erected: 95m
Beam: 50m
Draught: 9m
Design speed (max): 20 knots
Design speed (service): 15 knots
Lightweight: 21,000 tonnes
Maximum deadweight capacity: 13,000 tonnes
Pod propulsion: 2 x 4,000kW
Sails: 3 x 1,400m2
Fins: 12 x 210m2
Eight decks, three with adjustable height
Read more: http://www.theengineer.co.uk/in-depth/analysis/harnessing-the-sun-the-wind-and-the-sea-with-e/s-orcelle/1008538.article#ixzz1MWBDjgCs
Shipping Terms
Over Dimensional Surcharges / Over Dimensional Container
Charges imposed by a carrier when the cargo exceeds the length, width or height of a standard container and when special devices such as slings, shackles, lifting beams etc. are required to load or unload the container. Damaged Containers and Containers requiring special devices for lifting will also incur an over dimensional surcharge.
This applies to cargo shipped on Flats, Open Tops or Platforms. Also called
Out of Gauge (OOG). Synonym: Within Gauge (WIG).
Where, due to the nature of the cargo, it is necessary to use equipment or other services in addition to those normally used for moving containers in the container terminal e.g. cranes or direct loading equipment, these additional costs incurred will be charged to the merchant.
Charges imposed by a carrier when the cargo exceeds the length, width or height of a standard container and when special devices such as slings, shackles, lifting beams etc. are required to load or unload the container. Damaged Containers and Containers requiring special devices for lifting will also incur an over dimensional surcharge.
This applies to cargo shipped on Flats, Open Tops or Platforms. Also called
Out of Gauge (OOG). Synonym: Within Gauge (WIG).
Where, due to the nature of the cargo, it is necessary to use equipment or other services in addition to those normally used for moving containers in the container terminal e.g. cranes or direct loading equipment, these additional costs incurred will be charged to the merchant.
The Malaysian Economy
Malaysian Growth May Quicken, Giving Room for Rate Increase
May 16 (Bloomberg) -- Malaysia's economic growth probably accelerated last quarter amid rising investment and demand for commodities, supporting an Asian expansion that has prompted policy makers to raise interest rates.
Gross domestic product may have increased 4.9 percent in the three months through March from a year earlier, after a 4.8 percent expansion in the previous quarter, according to the median forecast of 20 economists surveyed by Bloomberg News. The central bank is scheduled to release the economic data at 6 p.m. on May 18.
Bank Negara Malaysia has raised borrowing costs four times since the beginning of March 2010 to contain inflation as the Southeast Asian nation recovered from a recession the previous year. The ringgit reached a 13-year high this month as higher interest rates from China to Taiwan boosted Asian currencies even as regional growth eases from a rebound last year.
"The stellar performance in commodity exports was the major driver of economic growth, although we are also encouraged by a better-than-expected showing in private consumption," said Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp. in Singapore. "Our assessment on the overall economic outlook remains fairly sanguine at this point."
Malaysia's exports rose 7.8 percent in March from a year earlier as palm oil shipments surged 22.8 percent and electronics sales gained 6.7 percent. The amount of loans disbursed by the country's lenders rose 17.3 percent in March from a year earlier, according to central bank data.
Asian Currencies
Most Asian currencies have climbed over the past year, partly because of foreign capital inflows seeking higher yields. The Malaysian ringgit has jumped 5.5 percent, advancing below 3 per U.S. dollar for the first time in more than 13 years on April 25. The currency fell 0.9 percent as of 9:55 a.m. local time today.
"With robust momentum in consumer credit showing the underlying demand growth, we expect Bank Negara to remain vigilant on inflationary pressures," said Rahul Bajoria, an economist in Singapore at Barclays Plc. "At the current juncture, inflation risks outweigh growth risks."
Inflation accelerated to a 23-month high in March, climbing 3 percent from a year earlier. Consumer prices probably rose at a faster pace in April, gaining 3.1 percent, according to the median estimate of 18 economists surveyed by Bloomberg News. The statistics department will release the figures on May 18.
The Southeast Asian nation's economy may expand 5 percent to 6 percent this year, after growing 7.2 percent in 2010, according to the central bank. Policy makers led by Governor Zeti Akhtar Aziz resumed rate increases this month after pausing since July, saying borrowing costs still support growth.
'Steady Growth'
"The assessment is for the Malaysian economy to remain firmly on a steady growth path, with growth improving gradually during the course of the year," the central bank said May 5. "Growth will be underpinned by the firm expansion of domestic demand. Sustained employment conditions and income growth is expected to provide support to private consumption."
Still, Malaysia's export growth has cooled since a rebound last year helped the country recover from the 2009 global recession, and the March 11 earthquake and tsunami in Japan have clouded the outlook for overseas sales for exporters from the Philippines to Thailand.
Rising prices for raw materials may hurt companies that have difficulty passing the higher cost of production to consumers, said Yong Yin Ng, an analyst at Citigroup Inc. in Kuala Lumpur. He is "cautious" on power utility Tenaga Nasional Bhd., construction and property group Gamuda Bhd. and budget carrier AirAsia Bhd.
Inflation Threat
"Overall business sentiment appears to have turned cautious as inflationary threat looms," Ng said. "Export sluggishness could extend another quarter following the Japan quake and further ringgit strength."
Citigroup said it views "positively" Petronas Chemicals Group Bhd. and oil palm planter QL Resources Bhd., and considers mobile-phone operator Axiata Group Bhd. and casino group Genting Bhd. as "attractive."
Singapore and Taiwan will release revised first-quarter growth numbers on May 19. Singapore's economy may have expanded an annualized 22 percent last quarter from the previous three months, when it climbed 3.9 percent, according to the median forecast of seven economists surveyed by Bloomberg News. That's less than the 23.5 percent growth estimated by the government on April 14.
Taiwan's economy probably grew 6.2 percent last quarter from a year earlier, after expanding 6.92 percent in the three months through December, a survey of 11 economists showed. An April 29 preliminary estimate showed first-quarter growth of 6.19 percent.
--Editors: Stephanie Phang, Alan Soughley
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/05/15/bloomberg1376-LL4POQ0D9L3501-50H5IDL2INSE9EGPSNVT26E3O3.DTL#ixzz1MVRay4kt
May 16 (Bloomberg) -- Malaysia's economic growth probably accelerated last quarter amid rising investment and demand for commodities, supporting an Asian expansion that has prompted policy makers to raise interest rates.
Gross domestic product may have increased 4.9 percent in the three months through March from a year earlier, after a 4.8 percent expansion in the previous quarter, according to the median forecast of 20 economists surveyed by Bloomberg News. The central bank is scheduled to release the economic data at 6 p.m. on May 18.
Bank Negara Malaysia has raised borrowing costs four times since the beginning of March 2010 to contain inflation as the Southeast Asian nation recovered from a recession the previous year. The ringgit reached a 13-year high this month as higher interest rates from China to Taiwan boosted Asian currencies even as regional growth eases from a rebound last year.
"The stellar performance in commodity exports was the major driver of economic growth, although we are also encouraged by a better-than-expected showing in private consumption," said Gundy Cahyadi, an economist at Oversea-Chinese Banking Corp. in Singapore. "Our assessment on the overall economic outlook remains fairly sanguine at this point."
Malaysia's exports rose 7.8 percent in March from a year earlier as palm oil shipments surged 22.8 percent and electronics sales gained 6.7 percent. The amount of loans disbursed by the country's lenders rose 17.3 percent in March from a year earlier, according to central bank data.
Asian Currencies
Most Asian currencies have climbed over the past year, partly because of foreign capital inflows seeking higher yields. The Malaysian ringgit has jumped 5.5 percent, advancing below 3 per U.S. dollar for the first time in more than 13 years on April 25. The currency fell 0.9 percent as of 9:55 a.m. local time today.
"With robust momentum in consumer credit showing the underlying demand growth, we expect Bank Negara to remain vigilant on inflationary pressures," said Rahul Bajoria, an economist in Singapore at Barclays Plc. "At the current juncture, inflation risks outweigh growth risks."
Inflation accelerated to a 23-month high in March, climbing 3 percent from a year earlier. Consumer prices probably rose at a faster pace in April, gaining 3.1 percent, according to the median estimate of 18 economists surveyed by Bloomberg News. The statistics department will release the figures on May 18.
The Southeast Asian nation's economy may expand 5 percent to 6 percent this year, after growing 7.2 percent in 2010, according to the central bank. Policy makers led by Governor Zeti Akhtar Aziz resumed rate increases this month after pausing since July, saying borrowing costs still support growth.
'Steady Growth'
"The assessment is for the Malaysian economy to remain firmly on a steady growth path, with growth improving gradually during the course of the year," the central bank said May 5. "Growth will be underpinned by the firm expansion of domestic demand. Sustained employment conditions and income growth is expected to provide support to private consumption."
Still, Malaysia's export growth has cooled since a rebound last year helped the country recover from the 2009 global recession, and the March 11 earthquake and tsunami in Japan have clouded the outlook for overseas sales for exporters from the Philippines to Thailand.
Rising prices for raw materials may hurt companies that have difficulty passing the higher cost of production to consumers, said Yong Yin Ng, an analyst at Citigroup Inc. in Kuala Lumpur. He is "cautious" on power utility Tenaga Nasional Bhd., construction and property group Gamuda Bhd. and budget carrier AirAsia Bhd.
Inflation Threat
"Overall business sentiment appears to have turned cautious as inflationary threat looms," Ng said. "Export sluggishness could extend another quarter following the Japan quake and further ringgit strength."
Citigroup said it views "positively" Petronas Chemicals Group Bhd. and oil palm planter QL Resources Bhd., and considers mobile-phone operator Axiata Group Bhd. and casino group Genting Bhd. as "attractive."
Singapore and Taiwan will release revised first-quarter growth numbers on May 19. Singapore's economy may have expanded an annualized 22 percent last quarter from the previous three months, when it climbed 3.9 percent, according to the median forecast of seven economists surveyed by Bloomberg News. That's less than the 23.5 percent growth estimated by the government on April 14.
Taiwan's economy probably grew 6.2 percent last quarter from a year earlier, after expanding 6.92 percent in the three months through December, a survey of 11 economists showed. An April 29 preliminary estimate showed first-quarter growth of 6.19 percent.
--Editors: Stephanie Phang, Alan Soughley
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/05/15/bloomberg1376-LL4POQ0D9L3501-50H5IDL2INSE9EGPSNVT26E3O3.DTL#ixzz1MVRay4kt
Wednesday, May 11, 2011
PIRACY
Piracy rise spurs Maersk to raise surcharge
Reflecting higher costs stemming from a jump in piracy off the Somali coast, A P Moller-Maersk has raised its emergency-risk surcharge.
Maersk's container-freight division increased the fee on each 40-foot container shipped through risky waters to US$200-$500 from $100-$400, to pass on some of the company's rising costs to customers, said Erik Rabjerg Nielsen, the division's head of daily operations, reported The Wall Street Journal.
Customers typically pay about $3,000 total to ship a container from Asia to the US.
He estimated that Maersk's anti-piracy costs will rise to $200 million this year from $100 million last year as ships are forced to sail faster and longer to prevent hijackings and crews receive doubled salaries as compensation for the added work.
"In 2010, one hijacking attempt was registered every six days, and in 2011 there's been a large increase in the activity. The problem has never been larger than right now," Rabjerg Nielsen said.
There were 142 pirate attacks in the first quarter, a quarterly record, according the International Maritime Bureau, a maritime-crime watchdog.
The rise was driven by a surge in piracy off the coast of Somalia, where 97 attacks were recorded in the first quarter, up from 35 a year earlier.
World-wide, there were 18 vessels hijacked, 344 crew members taken hostage and six crew members kidnapped in the first quarter, the bureau reported. A further 45 vessels were boarded, and another 45 were fired on.
Maersk Line's approximately 2,000 annual trips through pirate-ridden waters off the Horn of Africa, which cover an area about the size of Europe, now are made with larger ships, which are harder to invade than smaller ones.
"We have larger ships with more capacity, which isn't needed, and that costs money. As a consequence, our capacity utilisation on these routes is very low," Rabjerg Nielsen said.
Maersk has hired a former army major as anti-piracy chief in an effort to develop a stronger strategy and lobby competitors and politicians for a tougher international stance on piracy.
"Piracy is bad for the shipping industry, it's bad for global trade, and it's important that politicians and all involved take a larger responsibility now to try to put an end to it," Rabjerg Nielsen said.
Maersk hopes to encourage increased patrols by navy vessels near Somalia, political resolve to help stabilise the country and a stronger legal approach toward pirates who are caught, he said.
"Our message is that not enough is being done, and now is the time to act," he said.
The global shipping industry's total annual piracy costs, including ransoms paid, are between $3.5 billion and $8 billion, Ron Widdows, group president of Neptune Orient Lines, estimated at an anti-piracy conference in Dubai last month.
Reflecting higher costs stemming from a jump in piracy off the Somali coast, A P Moller-Maersk has raised its emergency-risk surcharge.
Maersk's container-freight division increased the fee on each 40-foot container shipped through risky waters to US$200-$500 from $100-$400, to pass on some of the company's rising costs to customers, said Erik Rabjerg Nielsen, the division's head of daily operations, reported The Wall Street Journal.
Customers typically pay about $3,000 total to ship a container from Asia to the US.
He estimated that Maersk's anti-piracy costs will rise to $200 million this year from $100 million last year as ships are forced to sail faster and longer to prevent hijackings and crews receive doubled salaries as compensation for the added work.
"In 2010, one hijacking attempt was registered every six days, and in 2011 there's been a large increase in the activity. The problem has never been larger than right now," Rabjerg Nielsen said.
There were 142 pirate attacks in the first quarter, a quarterly record, according the International Maritime Bureau, a maritime-crime watchdog.
The rise was driven by a surge in piracy off the coast of Somalia, where 97 attacks were recorded in the first quarter, up from 35 a year earlier.
World-wide, there were 18 vessels hijacked, 344 crew members taken hostage and six crew members kidnapped in the first quarter, the bureau reported. A further 45 vessels were boarded, and another 45 were fired on.
Maersk Line's approximately 2,000 annual trips through pirate-ridden waters off the Horn of Africa, which cover an area about the size of Europe, now are made with larger ships, which are harder to invade than smaller ones.
"We have larger ships with more capacity, which isn't needed, and that costs money. As a consequence, our capacity utilisation on these routes is very low," Rabjerg Nielsen said.
Maersk has hired a former army major as anti-piracy chief in an effort to develop a stronger strategy and lobby competitors and politicians for a tougher international stance on piracy.
"Piracy is bad for the shipping industry, it's bad for global trade, and it's important that politicians and all involved take a larger responsibility now to try to put an end to it," Rabjerg Nielsen said.
Maersk hopes to encourage increased patrols by navy vessels near Somalia, political resolve to help stabilise the country and a stronger legal approach toward pirates who are caught, he said.
"Our message is that not enough is being done, and now is the time to act," he said.
The global shipping industry's total annual piracy costs, including ransoms paid, are between $3.5 billion and $8 billion, Ron Widdows, group president of Neptune Orient Lines, estimated at an anti-piracy conference in Dubai last month.
Friday, May 6, 2011
MALAYSIAN ECONOMY
More Upside to Malaysia
By Yiannis G. Mostrous 5/5/2011
Emerging Markets
Readers of the Global Investment Strategist know that we’ve been bullish on Malaysia for some time, a stance that has generated solid returns. Even after delivering such a strong performance, Malaysia remains one of our favorite investment destinations for 2011.
Malaysia traditionally has been viewed as a backward economy with a very defensive market. But Prime Minister Najib Razak is widely viewed as someone who can lead Malaysia’s people and economy. The success of his efforts thus far has provided a roadmap to the country’s long-term development, and investors like what they see.
The country’s economy expanded by 7.2 percent in 2010 as exports recovered on the back of a strengthening global economy. And although this performance may be difficult to replicate this year, Malaysia’s economy can still deliver gross domestic product (GDP) growth of 5 percent in 2011.
The economy has benefited from strong commodity prices; Malaysia is a net exporter of crude oil, palm oil and rubber, among other commodities. Given the size of the country’s rural economy, strength in commodity prices should provide a boost to rural household incomes, as most rubber and palm oil farmers are small producers.
Nonetheless, Malaysia’s long-term economic future will depend on improving the country’s infrastructure. To this end, Malaysia has launched an ambitious Economic Transformation Program (ETP) to revitalize the country. The government aims to attract USD444 billion in investments in 131 projects over the next 10 years and to double the country’s per capita standard of living.
This program will be very beneficial to the economy. Not only does the ETP allow for new investment in the country, it will also reduce much of the red tape that has long frustrated the private sector.
Foreign investors have responded to these positive developments. Oil services company Schlumberger (NYSE: SLB), for example, has chosen Malaysia as its regional hub. Meanwhile, foreign direct investment (FDI) inflows have risen strongly; in the fourth quarter FDI inflows rose to USD3.4 billion. That’s the highest level of FDI seen for the past 10 years, save for the month of June, 2008.
The top three contributors to Malaysia’s FDI are South Korea, the Netherlands, and Japan; most of the investment is allocated to the manufacturing, trade and financial sectors.
Malaysia’s general elections are set for March 2013, though there have been calls for an earlier, snap general election. Even if this were to be the case, the election would not occur before next year because the prime minister will need time for his initiatives to produce results and galvanize public opinion. This should be viewed, for now, as a positive for the stock market.
The success of government’s initiatives and the proper execution of projects will be critical to the long-term health of Malaysia’s economy. But the short-term picture suggests the country is on track to achieve these goals.
Malaysia currently runs a large current account surplus and has gone on a shopping spree for overseas assets. The country boasts ample foreign reserves that provide a cushion against external financial shocks. However, the country’s fiscal deficit is 5.6 percent of GDP. Although this is down from the 7 percent recorded in 2009, it remains one of the highest readings in all of Asia.
We may see a slight improvement in the deficit this year, as subsidies will rise while commodity prices remain high. Malaysia’s status as a net exporter of energy and materials means that government revenue should also increase this year. But we don’t expect to see a drastic change in the country’s deficit in 2011.
Investors should keep in mind that the Malaysian economy is small and relatively open to trade, which makes it susceptible to any downturn in global trade. Although a slowdown in global trade this year would impact Malaysia, we believe that the global economy will post respectable growth this year.
Investors seeking a foothold in Asia beyond the behemoths of China and India should consider adding Malaysia to their portfolio.
By Yiannis G. Mostrous 5/5/2011
Emerging Markets
Readers of the Global Investment Strategist know that we’ve been bullish on Malaysia for some time, a stance that has generated solid returns. Even after delivering such a strong performance, Malaysia remains one of our favorite investment destinations for 2011.
Malaysia traditionally has been viewed as a backward economy with a very defensive market. But Prime Minister Najib Razak is widely viewed as someone who can lead Malaysia’s people and economy. The success of his efforts thus far has provided a roadmap to the country’s long-term development, and investors like what they see.
The country’s economy expanded by 7.2 percent in 2010 as exports recovered on the back of a strengthening global economy. And although this performance may be difficult to replicate this year, Malaysia’s economy can still deliver gross domestic product (GDP) growth of 5 percent in 2011.
The economy has benefited from strong commodity prices; Malaysia is a net exporter of crude oil, palm oil and rubber, among other commodities. Given the size of the country’s rural economy, strength in commodity prices should provide a boost to rural household incomes, as most rubber and palm oil farmers are small producers.
Nonetheless, Malaysia’s long-term economic future will depend on improving the country’s infrastructure. To this end, Malaysia has launched an ambitious Economic Transformation Program (ETP) to revitalize the country. The government aims to attract USD444 billion in investments in 131 projects over the next 10 years and to double the country’s per capita standard of living.
This program will be very beneficial to the economy. Not only does the ETP allow for new investment in the country, it will also reduce much of the red tape that has long frustrated the private sector.
Foreign investors have responded to these positive developments. Oil services company Schlumberger (NYSE: SLB), for example, has chosen Malaysia as its regional hub. Meanwhile, foreign direct investment (FDI) inflows have risen strongly; in the fourth quarter FDI inflows rose to USD3.4 billion. That’s the highest level of FDI seen for the past 10 years, save for the month of June, 2008.
The top three contributors to Malaysia’s FDI are South Korea, the Netherlands, and Japan; most of the investment is allocated to the manufacturing, trade and financial sectors.
Malaysia’s general elections are set for March 2013, though there have been calls for an earlier, snap general election. Even if this were to be the case, the election would not occur before next year because the prime minister will need time for his initiatives to produce results and galvanize public opinion. This should be viewed, for now, as a positive for the stock market.
The success of government’s initiatives and the proper execution of projects will be critical to the long-term health of Malaysia’s economy. But the short-term picture suggests the country is on track to achieve these goals.
Malaysia currently runs a large current account surplus and has gone on a shopping spree for overseas assets. The country boasts ample foreign reserves that provide a cushion against external financial shocks. However, the country’s fiscal deficit is 5.6 percent of GDP. Although this is down from the 7 percent recorded in 2009, it remains one of the highest readings in all of Asia.
We may see a slight improvement in the deficit this year, as subsidies will rise while commodity prices remain high. Malaysia’s status as a net exporter of energy and materials means that government revenue should also increase this year. But we don’t expect to see a drastic change in the country’s deficit in 2011.
Investors should keep in mind that the Malaysian economy is small and relatively open to trade, which makes it susceptible to any downturn in global trade. Although a slowdown in global trade this year would impact Malaysia, we believe that the global economy will post respectable growth this year.
Investors seeking a foothold in Asia beyond the behemoths of China and India should consider adding Malaysia to their portfolio.
Thursday, May 5, 2011
SERVICE SECTOR - SLOWDOWN IN THE US
Service Sector Growth Slowed Significantly in April
MAY 4 2011, 11:10 AM ET
This isn't a good sign. In one of the early economic temperature readings for April, the Institute for Supply Management reports that service sector growth slowed considerably. Its Non-Manufacturing Index fell drastically to its August 2010 level, which matches the 12-month low. Is the recovery losing its battle with rising gas prices and economic other shocks?
Here's the chart from ISM showing the components of its service sector barometer:
First, the NMI dropped a painful 4.5%. As mentioned, 52.8 matches its August level, but that was a low point for the early recovery. You have to go back to January 2010 to find a lower value than that for the NMI. Any score above 50 indicates growth, but at 52.8 that growth is much slower than it was when it peaked at 59.7 in February.
Business activity has now fallen two months in a row as well. That index has fallen a dramatic 13.2% since February. Again, however, business activity is still growing, on balance, but barely.
If you think the performance of those two indices sounds bad, then you'll be really worried about new orders. Their index fell a painful 11.4% in April to 52.7. This indicates anemic growth in new orders. New export orders also fell significantly last month, by 5.5%.
This report doesn't provide a pleasant verdict on hiring. If business activity and orders aren't growing as quickly, neither will hiring. Higher demand has been driving firms to take on more workers, but as that declines so will new job openings. In fact, we saw this through the ISM report, as employment growth also slowed in April. At 51.9, jobs are nearly declining again.
The service sector's status portrayed by this report isn't good. Its growth continued in April but at a very slow pace. Business activity and new order growth declined to a point where contraction in May looks plausible, which would end a 17-month trend of growth. Of course, this would also provide a potentially disastrous narrative on the recovery. Economists are currently forecasting that the recovery will continue to be slow. For the service sector, at least, it appears to be slowing even further. If the trends in this report continue, then the recovery may soon pause or even reverse.
MAY 4 2011, 11:10 AM ET
This isn't a good sign. In one of the early economic temperature readings for April, the Institute for Supply Management reports that service sector growth slowed considerably. Its Non-Manufacturing Index fell drastically to its August 2010 level, which matches the 12-month low. Is the recovery losing its battle with rising gas prices and economic other shocks?
Here's the chart from ISM showing the components of its service sector barometer:
First, the NMI dropped a painful 4.5%. As mentioned, 52.8 matches its August level, but that was a low point for the early recovery. You have to go back to January 2010 to find a lower value than that for the NMI. Any score above 50 indicates growth, but at 52.8 that growth is much slower than it was when it peaked at 59.7 in February.
Business activity has now fallen two months in a row as well. That index has fallen a dramatic 13.2% since February. Again, however, business activity is still growing, on balance, but barely.
If you think the performance of those two indices sounds bad, then you'll be really worried about new orders. Their index fell a painful 11.4% in April to 52.7. This indicates anemic growth in new orders. New export orders also fell significantly last month, by 5.5%.
This report doesn't provide a pleasant verdict on hiring. If business activity and orders aren't growing as quickly, neither will hiring. Higher demand has been driving firms to take on more workers, but as that declines so will new job openings. In fact, we saw this through the ISM report, as employment growth also slowed in April. At 51.9, jobs are nearly declining again.
The service sector's status portrayed by this report isn't good. Its growth continued in April but at a very slow pace. Business activity and new order growth declined to a point where contraction in May looks plausible, which would end a 17-month trend of growth. Of course, this would also provide a potentially disastrous narrative on the recovery. Economists are currently forecasting that the recovery will continue to be slow. For the service sector, at least, it appears to be slowing even further. If the trends in this report continue, then the recovery may soon pause or even reverse.
Monday, May 2, 2011
MASSIVE TRAFFIC JAM AT THE TOLL
Wow!! why are we not promoting hard enough for public transportation to ease this problem. Looks like we have to make it costlier to use the road using private vehicles. Otherwise we will be choked.
OIL & GAS
Rising oil prices likely to stall Asian economies with high fuel subsidies
by Stella Lee 04:46 AM May 02, 2011
SINGAPORE - Rising oil prices are likely to weigh down heavily on Asian governments with high fuel subsidies, economists said.
They said that should oil prices continue to rise, fuel subsidies will take a larger share of government spending, which means that there will be less money available for other fiscal projects such as infrastructure.
Most investors expect the demand for oil to remain strong amid the global economic recovery and further helped by concerns over supply due to the unrest in the Middle East.
But they are also concerned about many Asian countries that have significant portions of their budgets allocated to fuel subsidies to help cushion the impact of rising oil prices and how that is likely to affect their economic performance.
With oil prices expected to remain above the US$100 mark this year, economists say this will have implications for Asia's economies.
Malaysia and Indonesia currently have the largest fuel subsidies in South-East Asia costing the economies as much as over 1 per cent of their GDPs. Both are expected to increase fuel subsidies.
Still, most analysts believe both countries, being oil producers themselves, will be able to absorb more subsidies as they will benefit in the form of higher tax collection and royalty payments.
Most vulnerable, they say, will be India, where fuel subsidies will likely increase its budget deficit. Analysts estimate that a US$10 (S$12.24) increase in oil prices will increase the subsidy bill by US$3 billion for India.
Mr Victor Shum, managing consultant at energy consulting firm Purvin & Gertz, said: "Politicians will be under pressure to really maintain the subsidies or increase the subsidies as oil prices rise."
"What will happen is that funds will be diverted from other areas to finance subsides and that is going to hurt economic growth in India, so these subsidies will hurt economic growth," he said.
Higher oil prices also mean more inflation, further cutting back investment spending.
Ms Prakriti Sofat, regional economist at British bank Barclays Capital, said: "You would see prices at the pump increasing, that is passing through to transportation costs, as well as having second-round effects into food and other products. And we are already seeing that, whether it's Singapore, the Philippines, service sectors are increasing quite a lot."
Economists say that the best way to control inflation will be to remove subsidies as higher prices would have an immediate effect of dampening consumption.
Territories such as Korea, Taiwan, Singapore and Hong Kong are the least likely to be affected as they have no explicit oil subsidy programmes in place.
Singapore, which uses an exchange-rate policy, has allowed its currency to rise to help counter imported inflation including the rise in oil prices. Bloomberg
by Stella Lee 04:46 AM May 02, 2011
SINGAPORE - Rising oil prices are likely to weigh down heavily on Asian governments with high fuel subsidies, economists said.
They said that should oil prices continue to rise, fuel subsidies will take a larger share of government spending, which means that there will be less money available for other fiscal projects such as infrastructure.
Most investors expect the demand for oil to remain strong amid the global economic recovery and further helped by concerns over supply due to the unrest in the Middle East.
But they are also concerned about many Asian countries that have significant portions of their budgets allocated to fuel subsidies to help cushion the impact of rising oil prices and how that is likely to affect their economic performance.
With oil prices expected to remain above the US$100 mark this year, economists say this will have implications for Asia's economies.
Malaysia and Indonesia currently have the largest fuel subsidies in South-East Asia costing the economies as much as over 1 per cent of their GDPs. Both are expected to increase fuel subsidies.
Still, most analysts believe both countries, being oil producers themselves, will be able to absorb more subsidies as they will benefit in the form of higher tax collection and royalty payments.
Most vulnerable, they say, will be India, where fuel subsidies will likely increase its budget deficit. Analysts estimate that a US$10 (S$12.24) increase in oil prices will increase the subsidy bill by US$3 billion for India.
Mr Victor Shum, managing consultant at energy consulting firm Purvin & Gertz, said: "Politicians will be under pressure to really maintain the subsidies or increase the subsidies as oil prices rise."
"What will happen is that funds will be diverted from other areas to finance subsides and that is going to hurt economic growth in India, so these subsidies will hurt economic growth," he said.
Higher oil prices also mean more inflation, further cutting back investment spending.
Ms Prakriti Sofat, regional economist at British bank Barclays Capital, said: "You would see prices at the pump increasing, that is passing through to transportation costs, as well as having second-round effects into food and other products. And we are already seeing that, whether it's Singapore, the Philippines, service sectors are increasing quite a lot."
Economists say that the best way to control inflation will be to remove subsidies as higher prices would have an immediate effect of dampening consumption.
Territories such as Korea, Taiwan, Singapore and Hong Kong are the least likely to be affected as they have no explicit oil subsidy programmes in place.
Singapore, which uses an exchange-rate policy, has allowed its currency to rise to help counter imported inflation including the rise in oil prices. Bloomberg
Sunday, May 1, 2011
LOGISTICS: TAILOR-MADE SOLUTION
Revenue matters for speed logistics operator
Time:matters posted record revenue of US$112 million last year and “significantly increased profit” as the specialist speed logistics operator focused on expanding the business.
The independent company, a Lufthansa Cargo spin-off, provides customers with tailor-made transport solutions on short notice, which are especially effective for logistics challenges such as volatile economic situations, strikes or ash clouds.
“We anticipate that the exceptional requirements of 2010 will become standard in the future and are continually adjusting to this development, which ensures we can generate and implement customised solutions for our customers as quickly as possible,” said Franz-Joseph Miller, CEO of time:matters.
The positive developments of time:matters’ European branch offices, as well as the constant strong business growth in Asia, confirm the ongoing strategy of expansion.
Therefore, time:matters expects above-average growth throughout 2015, based on its internationalisation strategy and focus on Special Speed Solutions.
Miller said the company planned to further develop its core business and expand its presence in Europe and Asia.
Time:matters posted record revenue of US$112 million last year and “significantly increased profit” as the specialist speed logistics operator focused on expanding the business.
The independent company, a Lufthansa Cargo spin-off, provides customers with tailor-made transport solutions on short notice, which are especially effective for logistics challenges such as volatile economic situations, strikes or ash clouds.
“We anticipate that the exceptional requirements of 2010 will become standard in the future and are continually adjusting to this development, which ensures we can generate and implement customised solutions for our customers as quickly as possible,” said Franz-Joseph Miller, CEO of time:matters.
The positive developments of time:matters’ European branch offices, as well as the constant strong business growth in Asia, confirm the ongoing strategy of expansion.
Therefore, time:matters expects above-average growth throughout 2015, based on its internationalisation strategy and focus on Special Speed Solutions.
Miller said the company planned to further develop its core business and expand its presence in Europe and Asia.
Port News - Malaysia
Malaysian ports handle 4.78m TEUs in first quarter
Malaysian ports handled 4.78 million TEUs in the first quarter of 2011, an increase of 12.7 per cent over the 4.24 million TEUs recorded in the first quarter of 2010, reported Bernama.
Cumulatively, the nine ports posted positive growth of between two and 18 per cent, with Port of Tanjung Pelepas (PTP) recording the biggest growth of 18 per cent in container traffic.
Port Klang, Northport and Westports solidified their position as the largest container ports in the country, with container throughput rising by 11.6 per cent to 2.25 million TEUs.
Kuantan Port and Bintulu Port however recorded a decline in the quarter reviewed, down by 2.8 per cent and 16.5 per cent, respectively.
Transhipment traffic in the first quarter increased by 19 per cent to 3.23 million TEUs while import grew by four per cent to 764,855 TEUs from 732,634 TEUs previosly.
Malaysian ports handled 4.78 million TEUs in the first quarter of 2011, an increase of 12.7 per cent over the 4.24 million TEUs recorded in the first quarter of 2010, reported Bernama.
Cumulatively, the nine ports posted positive growth of between two and 18 per cent, with Port of Tanjung Pelepas (PTP) recording the biggest growth of 18 per cent in container traffic.
Port Klang, Northport and Westports solidified their position as the largest container ports in the country, with container throughput rising by 11.6 per cent to 2.25 million TEUs.
Kuantan Port and Bintulu Port however recorded a decline in the quarter reviewed, down by 2.8 per cent and 16.5 per cent, respectively.
Transhipment traffic in the first quarter increased by 19 per cent to 3.23 million TEUs while import grew by four per cent to 764,855 TEUs from 732,634 TEUs previosly.
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