In this issue of DNV Bulk Carrier Update we wanted to take a closer look at the logistics chain for coal and iron ore transportation and transformation. Also in this issue: Historical contracting by Greek owners – Golden Union, BW Bulk, K.G. Jebsen, MARPOL and Aegean: first Green Award Certificate to Bulk Carrier
All text and photographs: Magne A. Røe, except where otherwise statedDate: 2008-09-09
In the previous issue of DNV Bulk Carrier Update, six topics were introduced when we tried to ‘look into the crystal ball’ and predict what safety- and quality-minded players in the dry bulk cargo industry should pay attention to in the short to medium term. One of the topics highlighted was ‘Port congestion and loading speeds’, which is mainly a challenge at loading terminals for coal and iron ore.
The Port Complex of Tubarão, in the State of Espírito Santo in Brazil, is the biggest iron ore export port in the world. It is specialised on loading operations of iron ore ‘in natura’ and iron ore in pellets, but also has facilities for handling pig iron and blast furnace slag. The port complex is owned and operated by the world’s largest iron ore mining company – VALE.
Newcastle is located a couple of hours’ drive north of Sydney, Australia; the port is the largest in the world for coal exports. The lighthouse overlooking the harbour’s breakwaters sits on a cliff called Nobbys. From the beach below, you can on any given day all year round see some 35 to 40 large ships – mostly bulk carriers – riding the waves at a distance, all with their anchors out.
Across the port from the Port Authority office, we are greeted by Greg Harrap, Specialist Advisor Projects and Maintenance Systems.
Under the Regional Development Commissions Act regionalisation, Australia’s Pilbara Region is situated south of the Kimberley, and is made up of the local government areas of Ashburton, East Pilbara, Port Hedland and Roebourne.
When travelling to the Port of Dampier, a good starting point is Perth on Australia’s west coast; you get on an airplane and fly two hours more or less due north to the Karratha airport. In sunshine and temperatures approaching 50°C in summer, you will have to drive across barren land dotted with rock piles that are millions of years old. The rocks, dark red-brown in colour, look like pure iron with a small coat of rust on top. At the Dampier Port Authority (DPA), overlooking the area from a small control surmounting an administration building, we meet some of the staff.
At the gates of Rio Tinto, close to the little community of Dampier, Ms Leith Paganoni picks us up in a four-wheel-drive Landcruiser to show us the facility. This seems to be the appropriate vehicle for the roads in the area. The railroad unloading facility is most impressive.
Seaborne trade of dry bulk commodities is estimated to exceed three billion metric tons of cargo this year. No wonder many of the world’s biggest terminals are unable to handle the overwhelming volumes of raw materials such as coal and iron ore.
Updated Class notations from DNV to design vessels to accommodate faster – yet safe – loading
“We have always been a dry bulk cargo operator. We believe we should concentrate on what we know and understand best,” says Theodore E. Veniamis, the chairman and managing director of Piraeus-based Golden Union.
For the first time in its 14 years of existence, Green Award has a dry bulk carrier on its list of certified ships – Aegean Bulk’s M/V Afovos. In recognition of this milestone, Green Award handed over the first certificate in an official ceremony at the Posidonia Exhibition in Athens in June.
BW Shipping is a global player with a large fleet of tankers, offshore vessels and bulk carriers. The tanker and offshore markets are served from Oslo and the group’s Singapore office*, while the dry bulk market is served from Tokyo, Singapore and Oslo. James L. Marshall, Managing Director of BW Bulk, is guiding the rapid expansion of the BW Bulk fleet, which will double in size to 6.5 million dwt by 2012.
Kristian Gerhard Jebsen Skipsrederi AS (KGJS) is an international shipping company involved in the ownership, operation and management of vessels, terminals and companies; its head office is located in Bergen, Norway. In late 2007, KGJS decided to set up a company in Singapore, KGJS (Singapore) Pte Ltd. This company is located on the 42nd floor of an office tower with an excellent view of the Singapore harbour and container terminal. We have an appointment with the General Manager of the Singapore operations, Remi Skjegstad.
The IMO has approved reduced sulphur limits for fuel oils and new NOx emission limits, including limits for pre-2000 ships!
The DNV bulk carrier forum held in Shanghai on 27 June attracted more than 80 senior executives from the Chinese shipping and shipbuilding communities. The title of the forum was ‘Looking into Bulk Carrier’s Crystal Ball’, reflected on the fluctuation of dry cargo freight rates, the record-high newbuilding volumes and what topics will be on the industry’s agenda for the next 3–5 years.
An increasing number of owners are seeing the benefits of having DNV class and access to all of DNV’s services for their ships, even when the vessels’ building phase was surveyed by another class society. Approximately one quarter of the more than 5,000 DNV-classed ships were transferred to DNV class after construction, by owners that saw the advantages of this.
Stormy weather, high volatility and strong order volumes ahead …
China’s leading shipbuilding enterprise, Jiangsu Rongsheng Heavy Industries Co. Ltd (RSHI), and the world’s biggest iron ore supplier, Brazilian company Companhia Vale do Rio Doce (VALE) have concluded a new shipbuilding contract for 12 VLOCs – the world’s biggest shipbuilding contract ever.
