Malaysia container throughput edges up in Q1
Malaysian ports recorded an increase in container throughput of 6.5 percent to 5.1 million TEUs in the first quarter compared with the same period last year, said Transport Minister Kong Cho Ha.
In a statement, he said Port Klang was the top container port in the period (January-March 2012) with a throughput of 2.46 million TEUs compared with 2.26 million TEUs in the same period in 2011, an increase of 9.1 per cent, reported Bernama Daily.
In addition, Port of Tanjung Pelepas (PTP) managed a throughput of 1.88 million TEUs for the first quarter against 1.79 million TEUs in the same period a year ago.
Kong said all ports in Malaysia experienced positive growth of between one per cent and 24 per cent, with the exception of Johor Port, Kuantan Port and Miri Port, which declined by 8.9 per cent, 6.7 per cent and 0.7 per cent, respectively.
The drop in Johor Port's container throughput was due to a 30 per cent decrease in container transhipment to the port compared with the same period last year.
As for Kuantan Port, the decline was due to empty containers as a result of lower import and export trade.
Wednesday, May 9, 2012
Monday, May 7, 2012
PORT OPERATOR TO OWN GARMENT BIZ
Port operator ICTSI takes over garment firm
Port operator International Container Terminal Services Inc (ICTSI), through its Singaporean unit, has acquired a controlling stake in an Indonesian garment manufacturer, reported Business World.
In a disclosure, Philippines’ ICTSI said its subsidiary ICSTI Far East has amassed an 80 percent stake in Karwell Indonesia.
ICTSI Far East yesterday bought over 312 million shares in Karya Estetikamulia, the controlling shareholder of Karwell, for some US$2.5 million. This gave the ICTSI unit an initial 53.23 percent stake in the garment maker.
"In addition to the acquisition on May 3, ICTSI Far East also executed the purchase of 157,172,500 shares of Karwell or equivalent to 26.77 percent that are owned by several parties from the public shares," the disclosure read further.
ICTSI Far East also owns New Muara Container Terminal Services, which operates the Muara Container Terminal in Brunei, and Makassar Terminal Services, which operates container-handling equipment at the Makassar Container Terminal in South Sulawesi.
The acquisition follows the purchase by ICTSI Mauritius of a 35 percent stake in Pakistan International Container Terminal. (PICT).
PICT, which is located at Karachi port, has a maximum handling capacity of 750,000 TEUs.
ICTSI chairman and chief executive Enrique Razon, said last month that the company is also looking to acquire more port concessions in Africa, Middle East, and Latin America.
As of 2011, ICTSI is involved in 22 terminal operating concessions and port development projects in 17 countries worldwide. Of these projects, six are located in the Philippines.
The company has programmed $550 million in capital spending for this year, more than double last year's $228 million.The bulk of which or $345 million will be spent "for greenfield projects in Argentina, Mexico, and Columbia".
Port operator International Container Terminal Services Inc (ICTSI), through its Singaporean unit, has acquired a controlling stake in an Indonesian garment manufacturer, reported Business World.
In a disclosure, Philippines’ ICTSI said its subsidiary ICSTI Far East has amassed an 80 percent stake in Karwell Indonesia.
ICTSI Far East yesterday bought over 312 million shares in Karya Estetikamulia, the controlling shareholder of Karwell, for some US$2.5 million. This gave the ICTSI unit an initial 53.23 percent stake in the garment maker.
"In addition to the acquisition on May 3, ICTSI Far East also executed the purchase of 157,172,500 shares of Karwell or equivalent to 26.77 percent that are owned by several parties from the public shares," the disclosure read further.
ICTSI Far East also owns New Muara Container Terminal Services, which operates the Muara Container Terminal in Brunei, and Makassar Terminal Services, which operates container-handling equipment at the Makassar Container Terminal in South Sulawesi.
The acquisition follows the purchase by ICTSI Mauritius of a 35 percent stake in Pakistan International Container Terminal. (PICT).
PICT, which is located at Karachi port, has a maximum handling capacity of 750,000 TEUs.
ICTSI chairman and chief executive Enrique Razon, said last month that the company is also looking to acquire more port concessions in Africa, Middle East, and Latin America.
As of 2011, ICTSI is involved in 22 terminal operating concessions and port development projects in 17 countries worldwide. Of these projects, six are located in the Philippines.
The company has programmed $550 million in capital spending for this year, more than double last year's $228 million.The bulk of which or $345 million will be spent "for greenfield projects in Argentina, Mexico, and Columbia".
Monday, April 30, 2012
THE FUTURE PORT
$1m contest to design new-age port launched
A long-awaited contest with a US$1 million top prize to design a new-age container port was unveiled yesterday, reported Straits Times.
The Next Generation Container Port Challenge, as the competition is called, had been flagged last October, sparking about 70 expressions of interest from more than 10 countries.
The heightened level of interest was apparent at the official launch yesterday at the Mandarin Oriental Singapore.
“This challenge dares participants to play the role of a port planner and submit revolutionary designs that can achieve a quantum leap in innovation, efficiency, productivity and sustainability for container ports,’’ said M. Segar, assistant chief executive (operations) of the Maritime and Port Authority of Singapore (MPA), a co-organiser alongside the Singapore Maritime Institute (SMI).
He noted that the fundamental design of container ports have not changed much since they were introduced about 40 years ago.
But global container traffic has been growing at an annual rate of five to seven percent over the past decade, leading some experts to estimate that this could lead to a doubling of global container trade within 10 to 15 years. Planners also have to take into account increasingly large container ships, economic volatility and environmental concerns.
“Given the long gestation period for port development, this means that ports have to start making plans today to accommodate tomorrow's growth in container volumes,’’ said Segar.
Participants in the contest will have to consider several operating specifications, such as an annual handling capacity of at least 20 million TEUs, round-the-clock operations and a 90 per cent berth on arrival for ships.
Individuals, companies or research institutions, based here or overseas, can take part. Consortiums can also be formed.
The winning team will get a US$1 million cash prize and there can be up to six extra commendation awards of $100,000.
Grants of $5 million have been set aside for deserving teams to pursue further research. The winning proposal will be announced at next year's Singapore Maritime Week.
Details of the contest can be found on the SMI's website.
Some observers said the port challenge could throw up ideas for a new port development in Tuas.
The land lease at the port terminals in Tanjong Pagar, Keppel and Pulau Brani expires in 2027, and the Government's Economic Strategies Committee has recommended the development of a new waterfront city in Tanjong Pagar after that.
It also suggested looking into a long-term proposal to develop a consolidated port in Tuas, with enough handling capacity to ensure ongoing competitiveness.
One likely entrant is Halcrow, a London-based infrastructure consultant that is a unit of conglomerate CH2M Hill.
Julian Johanson-Brown, director of ports and maritime at Halcrow, flew into Singapore just to attend the official launch.
“When I first saw the challenge in London, I just couldn't stop thinking about it,’’ he said. “You get caught in the day job, you think about providing solutions for your current clients, and there's often little time to really explore this kind of opportunity.’’
A long-awaited contest with a US$1 million top prize to design a new-age container port was unveiled yesterday, reported Straits Times.
The Next Generation Container Port Challenge, as the competition is called, had been flagged last October, sparking about 70 expressions of interest from more than 10 countries.
The heightened level of interest was apparent at the official launch yesterday at the Mandarin Oriental Singapore.
“This challenge dares participants to play the role of a port planner and submit revolutionary designs that can achieve a quantum leap in innovation, efficiency, productivity and sustainability for container ports,’’ said M. Segar, assistant chief executive (operations) of the Maritime and Port Authority of Singapore (MPA), a co-organiser alongside the Singapore Maritime Institute (SMI).
He noted that the fundamental design of container ports have not changed much since they were introduced about 40 years ago.
But global container traffic has been growing at an annual rate of five to seven percent over the past decade, leading some experts to estimate that this could lead to a doubling of global container trade within 10 to 15 years. Planners also have to take into account increasingly large container ships, economic volatility and environmental concerns.
“Given the long gestation period for port development, this means that ports have to start making plans today to accommodate tomorrow's growth in container volumes,’’ said Segar.
Participants in the contest will have to consider several operating specifications, such as an annual handling capacity of at least 20 million TEUs, round-the-clock operations and a 90 per cent berth on arrival for ships.
Individuals, companies or research institutions, based here or overseas, can take part. Consortiums can also be formed.
The winning team will get a US$1 million cash prize and there can be up to six extra commendation awards of $100,000.
Grants of $5 million have been set aside for deserving teams to pursue further research. The winning proposal will be announced at next year's Singapore Maritime Week.
Details of the contest can be found on the SMI's website.
Some observers said the port challenge could throw up ideas for a new port development in Tuas.
The land lease at the port terminals in Tanjong Pagar, Keppel and Pulau Brani expires in 2027, and the Government's Economic Strategies Committee has recommended the development of a new waterfront city in Tanjong Pagar after that.
It also suggested looking into a long-term proposal to develop a consolidated port in Tuas, with enough handling capacity to ensure ongoing competitiveness.
One likely entrant is Halcrow, a London-based infrastructure consultant that is a unit of conglomerate CH2M Hill.
Julian Johanson-Brown, director of ports and maritime at Halcrow, flew into Singapore just to attend the official launch.
“When I first saw the challenge in London, I just couldn't stop thinking about it,’’ he said. “You get caught in the day job, you think about providing solutions for your current clients, and there's often little time to really explore this kind of opportunity.’’
Monday, April 23, 2012
A330 MRTT sets RAAF passenger record
By: Greg Waldron Singapore
An Airbus Military A330 multi-role tanker transport (MRTT) has carried the largest passenger load in the history of the Royal Australian Air Force.
The aircraft, flown by 33 Sqn, carried 220 officer cadets and 14 crew on a 2h flight out of RAAF Fairbairn, says Airbus Military in a statement.
"The sortie was part of the squadron's introduction into service of the KC-30A, which is capable of carrying 270 passengers in the configuration selected by the RAAF," says Airbus Military. In RAAF service the A330 MRTT is designated the KC-30A.
A key objective of the flight was exploring the procedures and logistics involved in carrying a large passenger load.
The previous passenger record was set in 1999, when an RAAF Lockheed Martin C-130 Hercules carried 180 passengers during a humanitarian relief mission in Indonesia.
The aircraft has also commenced hose-and-drogue aerial refuelling trials with Boeing F/A-18 aircraft operated by regular squadron pilots. Initially the trials were restricted to fighters flown by test pilots.
In March Airbus Military said it will promise Australia more A330 MRTT conversion work if Canberra purchases 10 C-295 transports under its Air 8000 Phase 2 requirement and a sixth MRTT. The C-295's rival for the first requirement is the L-3 Communications C-27J.
Qantas Defence Services in Brisbane has played a key role in A330 MRTT conversions, with the service's fifth and final aircraft currently being modified.
"As a quid pro quo, the acceptance of both offers [by Australia] would allow Airbus Military to commit to additional MRTT work in Australia for international customers, including deep level maintenance/MRO [maintenance, repair and overhaul], thanks to a secure industrial base," said Airbus Military.
Airbus Military sees strong potential for the A330 MRTT in the Asia Pacific. In India the type is competing against the Ilyushin IL-78MK for a six aircraft requirement. The aircraft was also on static display at recent air shows in Malaysia and Singapore.
Wednesday, March 21, 2012
AVIATION AND RISING FUEL PRICES
Chart of the Day: The Real Cost of Rising Gas Prices
by Adam English, Associate Editor, Inside Investing Daily
by Adam English, Associate Editor, Inside Investing Daily
If you think high gas prices are eating into your bottom line, try running an airline.
In 2012, the fuel bill for airlines is expected to be around $200 billion. That would account for more than 30% of total operating costs.
In the end, we all must pay the price.
By comparing oil prices to airline fares we can get a good idea of how the average passenger is getting hit by rising fuel costs.
A 12.1% increase in a six-month period last year was painful enough... but with oil prices predicted to stay above $100 per barrel throughout 2012 and a 4% rise in fare costs since the beginning of 2012 it will only get worse.
Southwest Airlines, the most consistently profitable U.S. carrier, has already announced that its first-quarter profits will be wiped out by rises in fuel costs.
As oil approaches $120 per barrel, airlines have no choice but to start making drastic changes to their businesses.
Airlines are already purchasing more efficient planes as quickly as their revenue allows. Routes are being dropped and passengers have fewer direct flights to anywhere except a major hub.
With crude prices creeping up past $107 per barrel, we can expect to pay through the nose for less-convenient routes well beyond the summer vacation season.
The only other possibility is a new round of airline bankruptcies.
Saturday, March 10, 2012
CRIPPLING EFFECT OF STRIKES
Ships shun Auckland as strike cripples port 
Twelve ships have already diverted to other ports during seven strikes at Auckland port since December
At least six more ships are expected to shun Auckland before Sunday as the country's largest container port lies crippled from the early days of a three-week strike.
That is on top of 12 ships already diverted to other ports during seven strikes against the council-owned port company since early December, when about 300 workers were also locked out for 48 hours, reported The New Zealand Herald..
Many other ships have been delayed and the company estimates its revenue loss so far from the diversions at up to US$2.94 million, not counting hefty costs to importers and exporters unable to get goods to market in time.
The dispute has also started putting a squeeze on exports from other ports, which rely on the supplies of empty containers imported through Auckland.
Although shipping giant Maersk hopes to berth a vessel in Auckland, and have it worked by non-striking port staff, the Maritime Union says it will believe that when it happens.
That follows a last-minute decision by a Singapore-based shipping line to turn around a container vessel and its cargo including foodstuffs and industrial supplies in the Hauraki Gulf on Sunday night and divert it to Tauranga, under alleged union pressure.
Auckland port company chief Tony Gibson and the union, whose members are striking against a threat to contract out their jobs, traded claims and denials yesterday about where such pressure came from.
Gibson said Ports of Auckland was urgently considering whether it could sue the union for damages.
He said it had been told by the shipping company Pacific International Lines of being threatened by a Maritime Union official from a conference in Australia with a ``black ban'', a claim denied by union president Garry Parsloe.
`I am the spokesman for the Maritime Union of New Zealand and I never said it and never instructed anybody to say it,'' he said.
`International unions talk to international shipping companies every day - they are entitled to do that - nobody can stop them and if that results in ships not coming to Auckland, I can't do anything about that.''
Importers' Institute secretary Daniel Silva, although a strong critic of the strike, said the company was ``barking up the wrong tree'' by investigating legal action against unionists.
``They are in the business of demanding with menaces, and the law allows it,'' he said.
Despite his pessimism, both sides have agreed to meet before a mediator on Thursday and Friday to explore the chance of settling a new collective employment deal.
Twelve ships have already diverted to other ports during seven strikes at Auckland port since December
At least six more ships are expected to shun Auckland before Sunday as the country's largest container port lies crippled from the early days of a three-week strike.
That is on top of 12 ships already diverted to other ports during seven strikes against the council-owned port company since early December, when about 300 workers were also locked out for 48 hours, reported The New Zealand Herald..
Many other ships have been delayed and the company estimates its revenue loss so far from the diversions at up to US$2.94 million, not counting hefty costs to importers and exporters unable to get goods to market in time.
The dispute has also started putting a squeeze on exports from other ports, which rely on the supplies of empty containers imported through Auckland.
Although shipping giant Maersk hopes to berth a vessel in Auckland, and have it worked by non-striking port staff, the Maritime Union says it will believe that when it happens.
That follows a last-minute decision by a Singapore-based shipping line to turn around a container vessel and its cargo including foodstuffs and industrial supplies in the Hauraki Gulf on Sunday night and divert it to Tauranga, under alleged union pressure.
Auckland port company chief Tony Gibson and the union, whose members are striking against a threat to contract out their jobs, traded claims and denials yesterday about where such pressure came from.
Gibson said Ports of Auckland was urgently considering whether it could sue the union for damages.
He said it had been told by the shipping company Pacific International Lines of being threatened by a Maritime Union official from a conference in Australia with a ``black ban'', a claim denied by union president Garry Parsloe.
`I am the spokesman for the Maritime Union of New Zealand and I never said it and never instructed anybody to say it,'' he said.
`International unions talk to international shipping companies every day - they are entitled to do that - nobody can stop them and if that results in ships not coming to Auckland, I can't do anything about that.''
Importers' Institute secretary Daniel Silva, although a strong critic of the strike, said the company was ``barking up the wrong tree'' by investigating legal action against unionists.
``They are in the business of demanding with menaces, and the law allows it,'' he said.
Despite his pessimism, both sides have agreed to meet before a mediator on Thursday and Friday to explore the chance of settling a new collective employment deal.
INVESTMENT MARKET
Australia is one of my favorite "go to" markets for investors who want to "globalize" their portfolio. It's a safe and stable economy with a lot of potential.
Better yet... it is largely removed from the debt worries plaguing the U.S. and European markets.
But with problems this big, it's hard not to get sucked into the turmoil.
In November 2011... Australia cut its interest rates. This relatively small adjustment sent ripples through the global economy.
That might not sound like big news... Major economies around the world have been slashing rates for the past four years. But this is different. Australia was the first developed economy to raise its interest rates after the global financial crisis in 2008 and 2009.
And it continued to raise rates through November 2010, when it made its last move, bumping rates from 4.5% to 4.75%.
But on Nov. 1, 2011, Australia trimmed rates back to 4.5%. It was the first cut in 2 ½ years.
Better yet... it is largely removed from the debt worries plaguing the U.S. and European markets.
But with problems this big, it's hard not to get sucked into the turmoil.
In November 2011... Australia cut its interest rates. This relatively small adjustment sent ripples through the global economy.
That might not sound like big news... Major economies around the world have been slashing rates for the past four years. But this is different. Australia was the first developed economy to raise its interest rates after the global financial crisis in 2008 and 2009.
And it continued to raise rates through November 2010, when it made its last move, bumping rates from 4.5% to 4.75%.
But on Nov. 1, 2011, Australia trimmed rates back to 4.5%. It was the first cut in 2 ½ years.
The reason? Europe's debt crisis was affecting trade with Asia. Bloomberg reported that China and South Korea were exporting less because of European and U.S. economic woes.
And China is a huge market for Australia.
You are probably wondering why you should care. I have two words for you: resource and opportunity.
What this rate cut meant for investors was this: more exports for Australian companies and more profits for their bottom line.
The resource sector is strong in Australia.
In fact, Australia is going through a mining boom. In late October 2011, BIS Shrapnel said in its report "Mining in Australia 2011 to 2026" that investment in Australian mining could reach $85.7 billion by 2015 or 2016.
In 2011 the estimated investment figures top out at only $48.5 billion, meaning the industry could see growth of nearly 20% a year for the next four years.
When interest rates are cut, the value of the underlying currency drops. After the announcement on November 1, the Australian dollar fell 0.4% overnight. That might not sound like much, but when you're talking about millions of dollars' worth of exports, this difference can add up quickly.
For example, if a buyer wanted to buy $1 million in iron ore, he would pay $4,000 less after rates were cut.
No wonder 80% of the investment capital in Australia's resource projects comes from outside the country. Everyone wants a piece of this pie.
Australia isn't the only fish in the pond, though... Indonesia, Turkey, Brazil and a host of other export countries are all trying to bolster exports. Australia's rate cuts could be justified by needing to stay competitive in the resources sector.
The growth expectations and stable government and economy make Australia very attractive.
And the best opportunities may just be in the smaller companies -- those where $4,000 makes a big difference. The junior mining sector will be a big place for investors over the next three or four years.
JUMEX, or junior mining and exploration companies, can move quickly.
One company worth looking at is Independence Group (IGO:ASX). It is a nickel producer with the Long Nickel Mine in Kambalda, Western Australia. It also owns stakes in six joint ventures across Australia. Plus, it is exploring in five 100%-owned mines.
The company's looking for gold and base metals... and prospects are good.
IGO also has made some strategic acquisitions that have bought it stakes in other joint ventures. Plus, it has strong cash flow thanks to the facts it is actually producing metal... not just searching for it.
These points are key for any investor looking to take a position in a junior mining company. A producing company is almost always safer (from an investment standpoint) than a small exploration company.
Reserve estimates for its exploration projects keep growing, too. Its Tropicana joint venture boosted gold reserves from 5.56 million ounces to 6.61 million ounces. IGO's stake is for 1.98 million ounces of those deposits.
Australia is a hotbed of mining projects, and the interest rate haircut will make exporting cheaper. For junior mining companies, this is great news. Investors could have a field day.
Keep in mind, some of these small miners are great takeover candidates, as well.
If you're looking to take advantage of the Australian mining boom and its role in the currency wars, now's the time to do it. Small-cap companies could offer you a great advantage in this industry.
Happy Investing,
Sara
And China is a huge market for Australia.
You are probably wondering why you should care. I have two words for you: resource and opportunity.
What this rate cut meant for investors was this: more exports for Australian companies and more profits for their bottom line.
The resource sector is strong in Australia.
In fact, Australia is going through a mining boom. In late October 2011, BIS Shrapnel said in its report "Mining in Australia 2011 to 2026" that investment in Australian mining could reach $85.7 billion by 2015 or 2016.
In 2011 the estimated investment figures top out at only $48.5 billion, meaning the industry could see growth of nearly 20% a year for the next four years.
When interest rates are cut, the value of the underlying currency drops. After the announcement on November 1, the Australian dollar fell 0.4% overnight. That might not sound like much, but when you're talking about millions of dollars' worth of exports, this difference can add up quickly.
For example, if a buyer wanted to buy $1 million in iron ore, he would pay $4,000 less after rates were cut.
No wonder 80% of the investment capital in Australia's resource projects comes from outside the country. Everyone wants a piece of this pie.
Australia isn't the only fish in the pond, though... Indonesia, Turkey, Brazil and a host of other export countries are all trying to bolster exports. Australia's rate cuts could be justified by needing to stay competitive in the resources sector.
The growth expectations and stable government and economy make Australia very attractive.
And the best opportunities may just be in the smaller companies -- those where $4,000 makes a big difference. The junior mining sector will be a big place for investors over the next three or four years.
JUMEX, or junior mining and exploration companies, can move quickly.
One company worth looking at is Independence Group (IGO:ASX). It is a nickel producer with the Long Nickel Mine in Kambalda, Western Australia. It also owns stakes in six joint ventures across Australia. Plus, it is exploring in five 100%-owned mines.
The company's looking for gold and base metals... and prospects are good.
IGO also has made some strategic acquisitions that have bought it stakes in other joint ventures. Plus, it has strong cash flow thanks to the facts it is actually producing metal... not just searching for it.
These points are key for any investor looking to take a position in a junior mining company. A producing company is almost always safer (from an investment standpoint) than a small exploration company.
Reserve estimates for its exploration projects keep growing, too. Its Tropicana joint venture boosted gold reserves from 5.56 million ounces to 6.61 million ounces. IGO's stake is for 1.98 million ounces of those deposits.
Australia is a hotbed of mining projects, and the interest rate haircut will make exporting cheaper. For junior mining companies, this is great news. Investors could have a field day.
Keep in mind, some of these small miners are great takeover candidates, as well.
If you're looking to take advantage of the Australian mining boom and its role in the currency wars, now's the time to do it. Small-cap companies could offer you a great advantage in this industry.
Happy Investing,
Sara
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