Operating profit for the CMA CGM Group is expected to return to the breakeven point in December 2009, ahead of the company’s cautious forecasts in September 2009.
The savings plan applied throughout all segments of the group, combined with increasingly firm volumes and rates, is already producing its initial effects. The recovery of operating profit illustrates the shipping expertise of the CMA CGM teams, which have been entirely focused on achieving this objective.
The key measures introduced are the following:
- Closing of secondary lines to concentrate volumes on the main lines, allowing the Group to take advantage of strategic vessels;
- An increase in strategic shipping partnerships with the twofold aim of improving service quality and rationalizing operating costs;
- Redelivery of chartered ships;
- Reduced logistics expenses and port expenditures;
- Optimized capacity in line with transport demand on all the Group’s lines.
Furthermore, by soon extending “super eco speed” to all ships on ocean-going lines, the group will further reduce fuel consumption by the end of the year, thus saving tens of millions of dollars.
Finally, a rebound in cargo rates has been observed on most of the lines: Asia – Europe, Asia – Mediterranean, Asia – South America.
The Asia / Northern Europe lines, which account for nearly a quarter of the volumes transported by the group, have returned to profitability since October 2009.
The group’s other lines are expected overall to reach the breakeven point by the end of 2009.
8. WRSystems Wins Navy Navigation Contract
W R Systems, Ltd. (WRSystems) has been awarded a $26,946,956 contract from the U.S. Navy to provide engineering technical support services for navigation systems in the U.S and abroad. Seventy-five percent of the contract work will be performed in Hampton Roads, Va. through the Fairfax, Va.-based company’s Engineering Services Division in Norfolk, Va. The value of the contract could reach an estimated $140,601,392 if all options are exercised.
In addition, WRSystems will soon begin marketing its patent-pending Continuous Emissions Monitoring System (CEMS), a new technology that collects and measures exhaust stack emissions to help vessels reduce pollutants and meet new environmental regulations. WRSystems expects to hire additional staff to help service the new contract and meet the demand for the new CEMS technology.
The Navy contract combines purchases for the Navy (97%), and the governments of Japan, Taiwan, Korea, Australia, Saudi Arabia and Egypt under the Foreign Military Sales Program. WRSystems will provide support to the Space and Naval Warfare Systems Command (SPAWAR) Systems Center in Charleston, South Carolina. The In-Service Engineering Agent overseeing the contract is located at Little Creek Naval Amphibious Base.
Contract work will include a broad range of systems engineering and technical and logistics support for navigation and interior communications systems. WRSystems will support SPAWAR Atlantic in the certification of navigation systems throughout the fleet, in research and development in drug interdiction and in equipment and systems training for the fleet. Day to day work tasks will include electronic charting, emergency technical assistance, technical publications development, integrated logistics and sophisticated sensor systems design for ships and maritime security forces. Initial work is expected to be completed by October 2010. If all options are exercised, the completion date will be October 2014.
In addition to Hampton Roads, work will be performed in Pearl Harbor, Hawaii; San Diego, California; Groton, Connecticut; Pascagoula Mississippi; Jacksonville, Florida; Ingleside, Texas and Seattle, Washington, as well as foreign military sites. WRSystems has employees strategically located to provide fleet and on-site customer support.
The CEMS is expected to go on the market worldwide in early 2010 and will have applications for approximately 80,000 vessels. The projected price for the CEMS is under $140,000 each.