HHI Starts ' 97 Strong Korean yard wins bulker contract from Norway's Bergesen to start year
Ihe first major newbuilding contract |for 1997 was Norway's Bergesen order for a 172,000-dwt bulk carrier from South Korea's Hyundai Heavy Industries (HHI) for $49 million. The vessel, when delivered in 1998, will enter a 15-year long term charter with British Steel.
The long drawn out Kuwait Oil Tanker Co. (KOTC) saga is set to reach fruition later this= month, with HHI expected to win an order two VLCCs, with an option for another.^^"he price is believed to be in the region of $80 million each. The negotiations for this deal have taken two years to complete, o a e r South Korean and Japanese yards beingJ/ne only competition. HHI is also one of the favafites to win an order from Malaysian International Shipping Corp. (MISC) for two 105,0flG-dwt tankers. The yard has two similar yfssels on its books, ordered by MISC d ^ i n g 1995. Another shipowner intereste<Mn the same type of tonnage is Singapore's^Tanker Pacific, which has placed a two-shjp order with South Korea's Samsung Heavy Industries (SHI).
SHI has been one of the most successful newbuilding yards of late, with orders from Conoco for a 103,000-dwt specialized offshore drillship; two 150,000-dwt tankers from Greece's \ Thenamans; and an oo^Ton for a fourth vessel in a series or^-8,00^1wt tankers from Greece's Ceres Hellenic^ Meanwhile, Q^uStoo Heavy Industries (DHI) has also bam active in the market with an order foj^wo 156,00(Ndwt tankers from U.S. majoiyoMI Corp. DHI has also reached an initiaMigreement with G r e e k s Niarchos for a J,000-dwt VLCC, and hasWon a further Suezmax order from Sweden's IOB. One firm order recently won by DHI was anS(rder for a 126,000-dwt North Sea shuttle t a n W from Denmark's AP Moller. The vessel, due for^elivery during late 1998, will be chartered to a i sortium of companies headed by BP Shipping The vessel has been ordered for use from the Schiehallion FPSO, which is currently under construction at Belfast's Harland & Wolff (H&W). Meanwhile, BP Shipping has a series of three Suezmax tankers under construction at SHI. These vessels will also be owned by an independent (North American Shipping) and chartered to BP Shipping.
Daedong Shipbuilding is another South Korean shipyard poised to enter the international market with an order for three handysized product carriers from Russia's Primorsk Shipping. During last year, Daedong opened its new shipbuilding complex at Chinhae. The first ship, a 46,500-dwt bulk carrier for Hong Kong's Parakou Shipping, is due for delivery next month. The large South Korean yards'' involved in the construction of LNG carriers are it for a boost during 1997, with the news that Korean Gas Corp. (KGC) will place contracts, through various South Korean shipowners, for at least ten 135,000-cu-m capacity vessels. This follows six such orders placed during 1996 — two each for HHI and y DHI and one each for SHI and Hanjin Heavy Industries.
Various yards in Japan have benefited from an order from United Arab Shipping Co. (UASC) for a total of 10 containerships. Kawasaki Heavy Industries will build four and Mitsubishi and Mitsui will build three each.
Japan's Mitsubishi Heavy Industries (MHI) has won a further ULCC order in the form of a 305,000-dwt unit for Golden Ocean Group, with a second vessel currently being negotiated. Italy's Scinicariello has ordered a 100,000-dwt tanker from Japan's Namura Zosen, with an option attached for a second ship. This shipyard has also won a 170,000-dwt bulk carrier contract from Japan's Navix Line, the ship due for a long term charter to Nippon Steel.
Denmark's AP Moller (Maersk Line) has become the latest Western shipowner to move into the mainland Chinese market with an der for two specialized product carriers of l l V ) 0 0 dwt (120,000-cu-m) from Dalian Shipyard. The ships, which will both be delivered duSmg the latter part of 1998, are similar in design oo those ships ordered by this owner from Japanl^Mitsui Zosen. Singapore's Pan United Shipyard has recently won an order from Indonesia's itertamina for two 17,500-dwt tankers, the first aouble-hulled vessels to be built by this shipyard. Each vessel will have a cruising speed of 13 knots and will be able to carry up to 23,700-cu-m of crude oil.
Pan United is currently undergoing an expansion program at its shipyard with another floating dock, with a deadweight capacity of approximately 50,000 tons being built within the yard's oyrtf^'coiffines.
This dock, w h i c l ^ m l be ready the first quar^rf of this year, complements idle yard's existing 40,000-dwr capacity floating dock, which j^ls also built by the yard. Work is continuing on a $712,600 covered workshop, due to become fully operational later this year, a development which repj^mits . t h e biggest shake-mj^in the igapore ship re^elfr industry in J I MI, Corporation is to acquire Jurong Shipyard Ltd. (JSL) in a deal expected to be comred early this $ear, creating the world's largest sinjde ship repair group. This acquisition will also affect a decrease in t \ e number of repair yards in Sing^ore from four to three, the othen Keppel Shipyard and Hitachi Zosen Singapore. Sembawang is toinject approximately $198 million worth of its shipyard and engineering assets into JSL in return for some 41.1 million new JSL shares. TJjj^iiiii i uiju^embawang's stake in JSL from 20Vo 41.6 percent.
Assets being injected into JSL by Sembawang inclufle: Sembawang Shipyard (two /oating docks of 150,000 dwt /nd 60,000 dwt); Karimun Ship/ard & Engineering (Sembawang* new ship repair facility); rfohai Sembawang Shipyard ( / Jurong/Sembawang joint v e n t r e in Tianjin, China); and the! fixed assets of Sembawart Bethlehem (SembawanVs newbuilding facility). The d e a ^ s still subject to the approval of botfl^ets of shareholders and the Sn^gapore stock exchange.
Another example oS lems facing the Sing^ repair area was Hits Singapore's warning tlj ond half results for financial year wouL lower than its first inalf profit of $3.8 million. The flfrst half figure was down from $4r3 million in the same period i h l previous year. The yard has adpiitted that it saw no significant i/nprovement in the ship repair market in the first half of 1996. Hitalhi has traditionally relied on a goqd flow of repair and maintenance \ contracts from Japanese and l(Val tanker owners, but these contacts have been hard to come by i i \ ; h e past three years.
In association wifti Bangkokbased Southeast Asia Technology Co. (SEATEC), B M j Group has been appointed as consulting engineers for the Second phase of the new dockyai^T being developed for the Royaff Thai Navy at Sattahip, Thailand. The consultancy contract, which commenced last OcttJjer, will be completed within file months. BMT and SEATEC W been responsible for the planrtfc^g, detailed engineering design, ahd specification of the first phase ofVhe development, and are currently supervising construction vwrk, including extensive dredging and reclamation, the construction of a drydock and associate^ arrival and refit berths.
Kepphil Shipyard, a member of Singapore!! Keppel Group, has announce* the start of construction of itsliew 40,000-dwt drydock at its Bailan, Batangas, shipyard in the Philippines. KepphilShipyard has reported an 18.3 percent jump in pre-tax profits to $3.9 million for the first nine months of 1996, compared to $3.3jnillion for the same period in 19£ The yard has als^r reportec enues reaching million. The improvement Ms been due to an increase in sjiip repair work on local vessels/it Keppel's Batangas Shipyard. /Earlier this year, the yard s o l d / t s 20,000-dwt floating dock to /Singapore's Singmarine Dockyam and Engineering for $3 millionjas part of a rationalization prograr Two F^c Eastern companies have e x p r e s s e d \ a n interest in the Eastern Gern^an shipyards formerly belonging t \ bankrupt BremeVulkan Group, MTW Schiffswerft in Wismar and Volkswerft Stralsund, Stralsund.
Another Far Eagi^'R "1 expanding^^fTto the North fn scene is Malaysia's Penang Shipbuilding, which has taken a 48 percent stake in Denmark's troubled Danyard facility. The investment is worth approximately $100 million. South Korean industrial coniloroerate Hanbo Group is conside building and repair facility in the Philippines. This was announced by the Philippine Board of Investments (Bol), a government agency tasked with promoting the Philippines as a investment site and providing tax incentives to priority industries. According to Bol's Officer^ Angie Cayas, Hanbo is in the process of looking for an ideal site for the labor intensive project which is expected to generate 20,000 jobs