STX Pan Ocean to start new Intra-Asia service in August

STX Pan Ocean says it plans to launch what it calls the New Ho Chi Minh Service, or NHS for short, next month in a bid to expand its Intra-Asia service offerings.

The port rotation for the NHS will be: Pusan, Kwangyang, Hong Kong, Ho Chi Minh, Singapore, Pasir Gudang, Ho Chi Minh, Hong Kong and back to Pusan on a weekly basis.

STX Pan Ocean said in a statement that the new service would kick off around August 12, from the port of Pusan.

Increased freight forwarding charges on way in Selangor

ESCALATING operational charges in the past few years have led freight forwarders in Selangor, Malaysia, to put up their container-handling charges starting next month.

Malaysia's Business Times newspaper reports that starting August 1, members of the Selangor Freight Forwarders and Logistics Association (SFFLA) will charge MYR30 (US$8.12) to handle a full container load shipment in addition to the current rates.

SFFLA said for less than container load shipments, the charges will also be increased by MYR30 per shipment or the current per cubic metre rate, whichever is higher. However, it noted that this was subject to a minimum charge of MYR80 per shipment.

The report quoted the association saying that members had agreed at its 33rd annual general meeting on May 25, 2006, to revise current forwarding fees to cover "the escalating operational costs over the past few years".

"All other charges related to Customs clearance will remain unchanged and SFFLA members are strictly requested to adhere to the new guidelines.

"With this revision, SFFLA expects all the members will continue to uphold the high level of service to their customers," the association said in the report.

Long Beach, Los Angeles see box trade growth in June, H1

THE Port of Long Beach has announced that it handled a total of 617,002 TEU in June, or seven per cent more containers than in the same month a year ago, when 576,604 TEU passed through its terminals.

Figures released by the California port show that within the June total the port handled 319,737 TEU of loaded inbound containers, up 8.7 per cent year-on-year; 101,828 TEU of loaded outbound containers, an increase of 0.4 per cent; and empties rose eight per cent compared to the same month last year to 195,437 TEU.

In the first six months of the year, the port processed a total of 3,536,693 TEU, an increase of 12.2 per cent compared to the same period a year ago.

Meanwhile, neighbouring Port of Los Angeles reported that its total container throughput amounted to 726,871 TEU in June 2006, an increase of 14.64 per cent compared to the same month last year.

A breakdown of the figure shows that imported loaded containers amounted to 380,852 TEU last month, while 7,104 TEU of empty boxes were also imported into the port. The number of outbound loaded containers totalled 115,184 TEU, while outbound empty containers rose 66.01 per cent year-on-year to 223,730 TEU.

In the first six months of the year, the Port of Los Angeles handled a total of 3,868,258 TEU, an increase of 8.92 per cent over the first half of 2005.

Within this total, the inbound trade accounted for 2,051,213 TEU and outbound 1,817,045 TEU.

Batman leads customs service in Australia's NSW

GAIL Batman, a senior executive with the Australian Customs Service, has taken over as Regional Director for the Australian state of New South Wales (NSW), succeeding David Collins, who is retiring from Customs after 42 years with the organisation.

Being the head of the largest Customs region in Australia, Ms Batman will direct a staff of 1,400 officers, mainly based in and around Sydney Airport.

Ms Batman was formerly Customs National Director, Border Intelligence and Passengers, based in Canberra and joined the Customs department in 1998 from the Australian Department of Health, working primarily on health care financing.

Ms Batman, who holds an honours degree in sociology from the Australian National University, said: "I look forward to the many challenges that this job will bring in maintaining the security of the border, particularly as Sydney is the major gateway to Australia.

"I also acknowledge the importance of working with industry to ensure the smooth and speedy movement of air and sea cargo while at the same time ensuring that government compliance standards are met."

Historic first Taiwan-mainland direct cargo flight takes off

A BOEING 747-400 aircraft belonging to Taiwan's biggest carrier, China Airlines, left Taipei at 10.10pm on July 19 on the first direct cargo flight between the island and the Chinese mainland, arriving at Shanghai at around 0.33am the next day.

The flight, though constituting only a modest breakthrough in the relations between the long-time rivals, nevertheless marked the historic beginning of regular chartered cargo flights between the two sides of the Taiwan Strait after a 56-year-old ban imposed by Taipei.

The Taiwanese aircraft was obliged to detour through Hong Kong air space, due to the insistence of the Taipei side, but was still able to shorten the time it normally takes to fly cargo from Taiwan to the mainland.

China Airlines expects to make two or three more chartered cargo flights of this kind before the end of July, according to Johnson Sun, a spokesman for the airline quoted by local media.

The new cargo flights are aimed principally at guaranteeing that Taiwanese companies can keep their mainland factories supplied with vital components and other materials, officials said.

They are the result of pressure from Taiwan's business community. Business leaders also hope to initiate direct cargo and passenger shipping links with the mainland.

China, Japan agree to expand services

THE Director General of the Civil Aviation Administration of China (CAAC) Yang Yuanyuan and Japan's Minister of Land, Infrastructure and Transport Kazuo Kitagawa recently signed a protocol that goes toward expanding their air transport offerings to each other.

The protocol allows each side to add two more cities as places of departure and two more as destinations, bringing the total number of departure points and destinations to 23.

Meanwhile, capacities on passenger and freight services will be increased by 20 per cent and 100 per cent respectively, which means adding 92 passenger flights and 76 cargo flights between China and Japan every week.

The protocol also widens the scope of code sharing between carriers of both countries and provides more flexibility on the wetlease of planes and on flying through each other's airspace.

Ever since 1974 when China and Japan signed their first civil aviation agreement, a network covering 19 Chinese and 17 Japanese cities has been developed with a weekly service of 548 flights. In 2005, passenger and freight movements between the two countries amounted to 6.91 million persons and 300,000 tons respectively.

China has already become the second-largest overseas air market for Japan, while Japan has become the largest such market for China. An unnamed official of CAAC quoted by Xinhua said the agreement, which was reached after lengthy negotiations, updated the civil aviation arrangements made 30 years ago.

Based on full consideration for market demand, the agreement will provide greater convenience for air carriers from both sides, he said. The official also described the agreement as a step forward in Sino-Japanese aviation relations, which would help forge closer ties between the two countries.

UPS receives subpoena as part of price-fixing probe

PACKAGE delivery giant UPS says it received a subpoena from the Antitrust Division of the US Department of Justice requesting records and business documents recently.

This development relates to an on-going probe into allegations of collusion on price-fixing in the air cargo and passenger industries involving surcharges for fuel, insurance and security as well as rates for passenger fares.

The investigation, which was made public in February 2006, has placed the business dealings of more than a dozen airlines under the microscope, including Air France-KLM, Deutsche Lufthansa, British Airways, Luxembourg-based Cargolux Airlines International and ACE Aviation Holdings.

UPS said in a statement that it "does not believe it is a target of the investigation and will co-operate with the Justice Department". UPS' chief rival FedEx Corp. and its subsidiaries last month received a grand jury subpoena from antitrust authorities in the US to produce documents in connection with a similar probe into allegations of price-fixing in the air cargo industry.

FedEx, however, said that as with UPS it did not receive a search warrant unlike several other airlines that have had their offices raided by antitrust authorities in Europe and the US.

Emirates to join MAX service in July

EMIRATES Shipping Line says that it will start participating in the MAX service run by OOCL from July 9, after acquiring container slots on this Asia to Middle East service.

The port rotation is: Shanghai, Ningbo, Hong Kong, Shekou, Singapore, Port Kelang, Jebel Ali, Port Kelang, Singapore, Hong Kong, and back to Shanghai.

"We are pleased to announce yet another option for our customers. This is a superior service on this very important trade route offering our customers service quality with very competitive transit times," chairman and CEO Vikas Khan was quoted as saying in an Emirates Shipping Line statement.

Emirates Shipping Line is registered in the United Arab Emirates' Dubai Maritime City and headquartered in Dubai and Hong Kong.

Anti-trust exemption in Japan may become thing of the past

THE system that has helped maintain stability in the world's shipping markets for over 150 years is at serious risk as Japan's competition regulator intends to ask for a lifting of the exemption on shipping lines from some anti-trust rules.

If Japan's Ministry of Land, Infrastructure and Transport approves the request from the Japan Fair Trade Commission (JFTC), it would oblige the country's top three shipping companies - Nippon Yusen Kaisha, Mitsui OSK and Kawasaki Kisen Kaisha - to pull out of liner conferences, according to a report in The Australian.

Toshiyuki Yokota, a director in the JFTC's Economic Affairs Bureau, said the watchdog would this summer ask the Transport Ministry to withdraw the anti-trust exemption, the paper says , in line with moves currently underway in Europe.

The exemption would lapse automatically if the Ministry did not respond within 30 days, although JFTC officials agreed that was improbable.

"Exercising this right is very symbolic, as it has never been done before," said Takanori Tanabe, Assistant Director at the JFTC.

Although lifting the exemption would be welcomed by representatives of shippers, who think that the conference system keeps sea freight prices uncompetitively high, analysts believe it could create turbulence in shipping markets to and from Japan, The Australian says.

Japan and its top three shipping lines have been firm defenders of the consensual rate-setting system and Japan this year strongly objected to the European Commission's plans to abolish exemptions on shipping conferences from anti-trust rules. The cartels are used by shipping lines to set common rates for scheduled services, mainly in container shipping.

"Japan has always been firmly supportive of the conference system and I think Japan's huge manufacturing corporations have generally been supportive of the conferences," said an analyst cited by The Australian, who asked not to be identified.

Lobbyists for shipping lines believe the Transport Ministry will reject the JFTC's request.

The Japanese Shipowners' Association, the shipping industry's trade body, is opposed to any moves to end the exemption and its members are understood to be pressing the JFTC to postpone any decision indefinitely.

Scheduled shipping services have traditionally been exempted from anti-trust rules since it was believed that they needed to be able to discuss rates and the demand for freight transport and capacity requirements to avoid wild fluctuations in rates, which would be detrimental to customers.

The system has been seen to be in decline in recent years, with shipping lines willing to offer important customers discounts on freight rates set by consortiums and many lines exiting from conferences entirely.

There have been regulatory changes internationally, with the US having withdrawn many aspects of shipping lines' anti-trust immunity in 1998 and the European Commission getting ready for even stronger action.

NYK turns to IBM for new IT accounting system

IBM Japan says that it has built a new accounting system with supporting IT infrastructure for Japanese transportation giant NYK Line.

Implementation of the new system has come as part of the company's "New Horizon 2007 " management plan which calls for enhancements to existing technology infrastructure in order to lower costs.

The new accounting system is expected to standardise and bring transparency to NYK's financial processes including charter fee settlement management, fuel inventory management and container management to improve corporate compliance and reduce time spent on finance processing tasks, an IBM statement explained. @FAXTEXT= The support the IBM Global Business Services Value Delivery Centre (VDC) provided during the system upgrade included system strategy development, integration of common processes across the enterprise and IT architecture expertise.

With the goal of the new accounting system being to improve responsiveness to rapidly changing market conditions, NYK Line selected IBM's open mainframe "IBM eServer zSeries 990 (z990)," Linux and SAP's ERP package.

The strongest feature of IBM's mainframe z990 is its ability to run its flagship z/OS operating system concurrently with open and industry standard technologies such as Linux and Java Linux on a single server, the IBM release said.

Gdynia Container Terminal opens

HONG KONG's Hutchison Port Holdings (HPH) has celebrated the opening of the first phase of its newest container terminal at the Polish Port of Gdynia.

Gdynia Container Terminal (GCT) was officially opened on June 17 by John Meredith, Group managing director of HPH and Wojciech Szczurek, the Mayor of Gdynia, who together unveiled a plaque signifying the commencement of operations at GCT.

John Meredith said: "Stage One operations mark the emergence of GCT as a major container facility in the Baltic region. GCT is an important addition to HPH's port network in Europe and will further strengthen our services in northern Continental Europe with our ports in Felixstowe, Harwich, Thamesport and Rotterdam."

Wojciech Szczurek said: "I am pleased that the combined efforts of the City of Gdynia and HPH, the world's largest port investor and operator, have come to fruition. The successful partnership between HPH and the Gdynia Port Authority has helped transform GCT into a modern container handling facility."

The opening of the new container terminal coincided with the official opening of a new Polish Customs Branch Office at GCT, a statement from HPH said.

The Port of Gdynia is located on the southern coast of the Baltic Sea and is said to be home to 90 per cent of all Polish sea-borne containerised cargo.

Succession rumours sparked by NOL CEO's departure

RUMOURS abound as to who will replace NOL's CEO David Lim following his announcement last week that he will step down. According to a report by TMC Net, there are several likely candidates for the job.

The story suggests that the new CEO will more than likely come from outside the company, due to the fact that NOL has embarked on a global search for the new position.

This, according to the report and industry observers, would rule out NOL deputy chairman Cedric Foo or APL chief executiveRon Widdows from taking up the post.

Industry insiders have speculated that the new CEO could come from Singapore's political world.

Likely candidates for the position include Singapore's current Minister to the Prime Minister Lim Boon Heng and former Transport Minister Yeo Cheow Tong.

Other possible contenders include executives from dissolved or merged shipping companies such as P&O Ports, P&O Nedlloyd and CP Ships.

NOL has however remained tight-lipped on who will emerge as the new CEO, stating that it was not its "practice to discuss the executive search process or individual candidates".

Mr Lim announced earlier that he will continue in his present posts until his successor is ready to take over.

Shanghai Airlines makes maiden flight to Lion City

SHANGHAI Airlines has become the second mainland carrier to operate scheduled all-cargo flights between China and Singapore, after all-cargo carrier Yangtze River Express Airlines started flying the route last November.

The Civil Aviation Authority of Singapore (CAAS) said that Shanghai Airlines made its maiden landing at Changi Airport on June 17 at 1045 hrs.

Despite being a newcomer to Changi Airport, Shanghai Airlines will offer the highest number of all-cargo flights between Singapore and Shanghai, operating 16 weekly flights on this route, according to a CAAS statement.

"Shanghai Airlines' entry into the Singapore-China market occurs at a most opportune time, given the fast growing air freight market between our two countries, and it also provides shippers with an additional choice to move their cargo between our two countries," said MG(NS) Lim Kim Choon, Senior Deputy Director-General, CAAS.

Airfreight tonnage carried between Singapore and China in 2005 amounted to almost 130,000 tonnes, up 17 per cent over the previous year. For the Singapore-Shanghai sector specifically, total throughput grew by 20 per cent year-on-year in 2005.

Shanghai Airlines joins 12 other airlines at Changi Airport flying between Singapore and 19 cities in China. Together, they operate more than 400 weekly passenger and cargo flights between the two countries.

AirBridge boosts service to Sakhalin Island

AIRBRIDGE Cargo (ABC) says that it has boosted its airfreight service between its Russian hub in Krasnoyarsk to oil-rich Sakhalin Island by adding a second weekly IL-76 freighter flight to serve the route.

ABC said in a statement that it is the only scheduled all-cargo airline to serve the Yuzhno-Sakhalinsk trade.

In addition the company, which is a member of the Volga-Dnepr Group, has opened an office on the island to support its oil and gas industry. The airline has appointed Stanislav Gaponenko and Alexander Vorontsov as its representatives in Sakhalin, who will be responsible for sales and customer service respectively.

The extra air cargo flight comes after ABC launched weekly service to Sakhalin from Frankfurt and Amsterdam in March last year amid growing demand from the oil and gas industry in the region, including from China and Japan.

Alexander Mazilin, Regional director of ABC in Krasnoyarsk, said: "Our weekly service has been very successful over the last year and it has always been our intention to increase the frequency of services to keep pace with demand from our freight forwarding partners and oil and gas customers."

An estimated 45 billion barrels of oil is believed to lie off Sakhalin's shores, an amount equivalent to the remaining reserves in the US or Europe.

New Tibet airport set for take-off

CHINA will open a new airport in Tibet in early July, bringing the number of civilian airports in the autonomous region to three.

Construction of Nyingchi Airport, 2,949 metres above sea level in Nyingchi prefecture and 400 kilometres from the Tibetan capital Lhasa, was completed in April at a cost of CNY780 million (US$97.5 million), Xinhua News Agency says.

Tibet's two other airports are in Lhasa, about 3,650 metres above sea level, and eastern Qamdo.

"The lower altitude will make Nyingchi an ideal first stop for tourists to gradually adapt themselves to Tibet's highland climate and minimise the effect of thin oxygen," said a spokesman for Air China Southwest, a subsidiary of Air China, quoted by Xinhua.

The new airport could bring an extra 120,000 visitors a year to Tibet, which had 1.22 million tourists in 2004.

It is slated to start operations the same month as the world's highest railway that now links Lhasa with Xining, the capital of western China's Qinghai province.

Beijing says the 2,040-kilometre rail link will promote development and help raise living standards in the region.

Links between Pan-PRD, Asean nations set to improve

CHINA's Pan-Pearl River Delta region is said to be speeding up development of a land-sea-and-air transportation network, integrating highways, railways, waterways and airways with those of Association of Southeast Asian Nations (Asean) members.

Weng Mengyong, the Vice-Minister of China's Ministry of Communications was cited as saying that by 2020 coastal ports and highways in southern and southwestern China along with the Pearl River and South China Sea waterways will be connected with Asean's transportation system, in a bid to bring goods to market quicker and boost the region's trade with the rest of the world, Xinhua news agency reported.

Highways are seen as providing an important land link between the Pan-PRD and Asean, and there are already 11 customs checkpoints separating Yunnan and Guangxi provinces from their Asean neighbours.

In Yunnan, construction of the Chinese section of the 1,818 kilometre Kunming-Bangkok Highway is said to be proceeding. The road is expected to be completed by the end of 2007. Furthermore, the Kunming-Hanoi Highway is scheduled to open to traffic in 2007, and the Kunming-Rangoon Highway by 2010.

Building work on the Chinese sections of the Pan-Asian Railways linking southwest China with Asean countries, including separate lines from China to Vietnam, Burma and Laos has already begun and is forecast to continue until at least 2015.

With regard to shipping and air links, the Lancang-Mekong Waterway has been identified as a viable trade route, and construction of the new Kunming Airport that is intended to become a hub for trade between China, South Asia and Southeast Asia is underway.

Meanwhile in Guangxi, the ports of Fangcheng, Qinzhou and Beihai will be largely dedicated to handling the flow of goods between China and Asean nations.

CN to buy 50 more locomotives to handle rising Asian freight volumes

CANADIAN National Railway Company (CN) says it plans to buy 50 high-powered locomotives from manufacturer Electro-Motive Diesel for an undisclosed purchase price.

The locomotives are scheduled for delivery in the second half of 2007.

The acquisition of the 4,300-horsepower SD70M-2 locomotives is intended to help CN to handle growing volumes of international freight to and from the new intermodal terminal at Port of Prince Rupert in British Colombia, which is due to open for business at around the time the new locomotives will be arriving.

The Prince Rupert terminal is expected to create a new North American gateway for Asian goods destined for the principal centres of Canada and the United States Midwest and South, a CN statement explained.

Phase one of the new terminal will be able to handle 500,000 TEU annually. These containers will travel over CN's North American network from Prince Rupert to Toronto, Montreal, Chicago and Memphis, Tennessee.

E Hunter Harrison, president and chief executive officer of CN, said: "These new locomotives will position us to accommodate rising traffic volumes on our Western Canadian network and, in particular, anticipated new Prince Rupert freight volumes. CN's network has ample capacity to handle more freight, with new extended sidings in the west allowing us to improve velocity and efficiencies."

Shenyang to host int'l logistics expo in July

THE northern mainland city of Shenyang will host the "2006 China Shenyang International Transport & Logistics Exposition" in the city's International Exhibition Centre from July 11-13, Xinhua reports.

The event is the first international transport and logistics expo to be held in northeastern China. The exhibition has been backed by the Liaoning Provincial People's Government, and is jointly being sponsored by the Communications Department of Liaoning province and the China Council for the Promotion of International Trade Liaoning sub-council, the news agency said.

The conference is expected to draw representatives from logistics, port operation, shipping, container manufacturing, freight forwarding sectors and other related groups.

A number of seminars will be held in conjunction with the expo on such topics as supply chain management, information technology, logistics parks and port development.

Cross-straits cargo flights to go ahead

IN a move seen as an important step towards restoring regular aviation links across the Taiwan Straits, the Chinese mainland and Taiwan announced on June 14 that they have agreed to allow cross-straits cargo charters for the first time. Direct passenger flights will also be allowed during holidays.

In line with the agreement, Taiwan will permit cargo flights on a case-by-case basis, with companies based on the island being allowed to use these special chartered flights to ship goods and equipment to the mainland and back, according to China Daily.

Chartered passenger flights will be allowed during the Grave Sweeping Festival, the Dragon Boat Festival and the Mid-Autumn Festival, in addition to the Lunar New Year holiday, when such flights have already been permitted. Special emergency medical and selected humanitarian aid charter flights will also be given the green light.

The agreement will allow six airlines on each side to operate a combined 168 round trips per year for the holidays, confirmed Joseph Wu, Chairman of Taiwan's Mainland Affairs Council, according to Reuters. The flights will be operated from Taipei or Kaohsiung to Beijing, Shanghai, Guangzhou or Xiamen. A spokesman from the Taiwan Affairs Office of China's State Council said that direct links were needed by the millions of Taiwanese businessman who came to the mainland every year, by farmers in Taiwan who wanted lower transport costs in order to sell their fruit and vegetables on the mainland and by families desperate to visit their relatives.

"We hope the Taiwan authorities can abide by their pledges and approve talks as soon as possible to speed up cargo flights and expand charter passenger flights to weekends or on a regular basis," Pu Zhaozhou, Director of the Cross-Straits Aviation Transport Exchange Council, was quoted saying by Xinhua News Agency.

Taiwan has banned direct air links with the mainland since the former Kuomintang government fled to the island in 1949. In 2005 and 2006 six Taiwan and six mainland carriers were allowed to operate special charter flights during the Lunar New Year. Despite not being required to stop en route, they had to fly through Hong Kong airspace.

Singapore Airlines orders 20 Boeing 787-9s

SINGAPORE Airlines (SIA) has signed a letter of intent to purchase 20 Boeing 787-9s, with purchase rights for another 20 of the same aircraft.

Current manufacturer catalogue prices place the value of the 20 firm aircraft orders at US$4.52 billion. Deliveries are scheduled between early 2011 and mid 2013.

"The decision to purchase the 787-9 is the culmination of an extensive evaluation of the performance characteristics and operating economics promised for the different versions of Boeing's new 787 aircraft," the statement said.

A spokesperson for the airline said that the new aircraft would be equipped with the capacity to hold 20 tonnes of cargo.

SIA plans to deploy the aircraft on routes to North Asia, the Indian subcontinent and the Middle East.

SIA has also announced that its cargo division raised its load factor for May from 60.2 per cent last year to 60.9 per cent in 2006.

Qantas makes changes to domestic schedule

QANTAS says it has made changes to its Northern Tasmania and South Australia schedules, following a review.

Qantas Group general manager Narendra Kumar said Qantas would cease operations to its two South Australian ports, Kangaroo Island and Port Lincoln on June 28; cease operation to Burnie in Tasmania on July 31; replace daily Qantas B737 Launceston-Melbourne services with double daily Dash 8 services on August 1; and maintain Jetstar's 21 A320 jet return services a week between Launceston and Melbourne.

Mr Kumar said: "In the current environment of escalating fuel prices, we cannot continue to absorb losses on these routes. Moving to double daily Dash 8 frequencies between Launceston and Melbourne will address the issue of excess capacity on the route and at the same time offer passengers better connections in Melbourne," he said.

Port of Qingdao to build 124 berths

THE port of Qingdao is going to start building 124 berths in the near future, Qingdao Financial Daily has reported.

The paper said the information was contained in a port development plan which has just been approved by the city government and will be forwarded to the relevant national government bodies for final approval.

According to the plan, work to expand the Sifang port area will be launched during the middle of the 11th Five-Year Plan, which runs from 2006 to 2010. By the end of this period, the Qianwan container terminal would have been further upgraded and put into operation. A bonded logistics park will also be built in the Qianwan port area by 2010.

The annual throughput of the port is forecast to reach 300 to 320 million tons by 2010, with container volumes totalling 12 million TEU. The two figures are expected to further rise to up to 450 million tons and 22 million TEU by the year 2020.

As of June 14, the volume of cargo handled by the port amounted to 100.18 million tons, which is equivalent to the amount handled for the whole of 2000. It is anticipated that the port's cargo throughput will surpass 200 million tons this year alone.

Ningbo-Zhoushan box volume up 38pc in May

NINGBO-ZHOUSHAN port handled 584,000 TEU in May, a rise of 38.1 per cent compared to the same month last year.

The facility also processed 34.79 million tons of cargo last month, an increase of 9.7 per cent year-on-year, and within this total, 15.66 million tons of the freight was made up of foreign trade cargo, up 18.6 per cent.

The cumulative total for the first five months of the year amounted to 2.62 million TEU, up 38.3 per cent year-on-year. This strong growth indicates that the gradual integration of the two port areas is proving a success, Xinhua news agency reported.

From January to May, Ningbo-Zhoushan port altogether handled 167.47 million tons of cargo, an increase of 13.7 per cent over the same period a year ago. Foreign trade during this period rose 19.9 per cent over 2005 to 75.4 million tons of cargo.

One of the chief items for import was cotton, with 33,000 tons of the raw material passing through the port between January and May this year, according to the latest statistics from Ningbo Customs, with a value of US$44.596 million, surging 290 per cent and 310 per cent respectively.

The main reason for the surge in cotton imports is due to a reduction in the duty levied on cotton imports that was introduced earlier this year by China's Ministry of Commerce to help boost the burgeoning textile and garment manufacturing industry, the state media said.

MOL renames liner info units

THE MOL Group's liner division information service companies, Star-Net America and Star-Net Asia, have been renamed to reflect an expansion of their business activities.

A company statement said both companies are "critical" for the operation of its liner division as they are responsible for developing information system services through the Starnet System platform, which unifies management of container cargo information.

As a result of this development, Star-Net America has been renamed "MOL Information Technology America Inc." (MOL-IT America), with its head office based in New Jersey.

Star-Net Asia will from now on go by the name of "MOL Information Technology Asia Ltd", or MOL-IT Asia for short. It's head office is located in Hong Kong. Likewise, it's branch in Calcutta, India has been renamed "MOL-IT India", and it's Europe office, MOL-IT Europe.

Maersk to raise BAF in July

MAERSK Line has announced that starting July 1, the bunker adjustment factor (BAF) for all cargo movements from Europe to Hong Kong and mainland China will be increased to US$313 per TEU.

The line also said in a statement that its Currency Adjustment Factor (CAF) would be revised upwards to +8.1 per cent from the beginning of July.

Emirates Shipping appoints agents in Pakistan & Spain

EMIRATES Shipping Agency Pakistan (Pvt) Ltd will in future represent Dubai-headquartered Emirates Shipping Line in the Asian nation, following the signing of an agency agreement between the two parties.

Emirates Shipping Agency (Pvt) is a part of the Anchor Shipping & Trading Group.

"We are delighted to have Emirates Shipping Agency Pakistan (Pvt) Ltd as our agency in Pakistan," said Vikas Khan, chairman and CEO of Emirates Shipping Line. "The company shares our common objective in ensuring high standard quality and professional integrity of service."

"Emirates focus on customer service and quality is going to give the exporters of Pakistan improved competitiveness, reduced transit time and enhanced information flow," said Adnan Ahmad, chief executive of Emirates Shipping Agency Pakistan.

In a related development, the United Arab Emirates shipping line has also appointed Emirates Agencias Spain, SL as its agent in Spain.

"With the launch of Emirates Shipping Line in Spain, we can offer a wider range of coverage to new and existing customers who will be assured of a more comprehensive service not only in the Spanish ports, but also act as a hub for the North African ports," said Mr Khan.

Rafael Trocoli, general manager of Emirates Agencias Spain, added: "The Spanish market welcomes the new service."

Take Malacca Strait off danger list, industry watchdog says

A LEADING international maritime watchdog has lent its support to calls appealing for the removal of the Malacca Strait from Lloyd's Market Association's Joint War Committee list of dangerous waterways, a report by AFX says.

Noel Choong from the International Maritime Bureau's (IMB) Piracy Reporting Centre said that piracy in the region had seen a sharp decrease in recent times, due in large part to the combined efforts of Singapore, Malaysia and Indonesia aggressively patrolling the region and helping to keep the waterway safe.

"Based on the figures, there is no justification for them to include Malacca Strait in the list, unless Lloyd's has some other information that we are not aware of," he said.

Mr Choong's comments come shortly after Lloyd's reaffirmed its decision to maintain its "dangerous waterway" rating for the strait.

Among those wishing to see Lloyd's reverse its decision are those having to pay higher premiums for vessels travelling through the waterway.

Long Beach rewards green terminal operators

THE Port of Long Beach says that it has presented clean-air awards to its seven container terminals for utilising cargo-handling equipment that has helped cut harmful pollutants by up to 50 per cent.

"Cargo-handling equipment is one of our biggest clean-air successes so far at the port," said Robert Kanter, the port's director of planning and environmental affairs.

The port and its tenants have successfully managed to reduce emissions from cargo-handling equipment by nearly 600 tons a year of nitrogen oxides (NOx) compared to 2002 levels, which represents an overall reduction of 24 per cent.

The improvements have also resulted in a 50 per cent reduction in diesel particulate matter (PM) that has been linked to cancer and respiratory ailments. Diesel PM from cargo equipment emissions has been cut by more than 70 tons a year from 2002 levels, a statement from port authorities said.

This success comes after various government bodies and the port have collectively spent more than US$2 million to retrofit more than 600 pieces of cargo-handling equipment with cleaner-burning diesel oxidation catalysts.

"Our container terminals deserve a lot of credit for stepping up to the plate," Mr Kanter said. "They have quickly accelerated the replacement of older equipment with new, cleaner-burning models."

Airbus delays A380 deliveries

EUROPEAN aircraft manufacturer Airbus says that following a review of its A380 programme the delivery schedule will be pushed back by six to seven months due to production ramp-up problems.

The delay is likely to limit aircraft delivery to nine in 2007, an Airbus statement said.

Furthermore, a shortfall of five to nine aircraft deliveries in 2008 and around five aircraft in 2009 is expected.

The review also concluded that further actions are required to secure a ramp-up recovery in 2008 and 2009, prompting Airbus president and CEO Gustav Humbert to order the immediate setting up and implementation of a recovery action plan.

Airbus said the new delays have been caused by industrial issues mainly due to bottlenecks that have cropped up during the manufacture and installation of electrical systems, "modifications of electrical systems and reworks have been necessary at section level, progressively disturbing the final assembly flow", the company statement explained.

On a more positive note, Airbus expects to maintain the target date for A380 certification and delivery of the first aircraft by the end of the year, after describing the results of its flight test programme as satisfactory.

The aircraft manufacturer said there are currently 15 aircraft already assembled, while production of sections for aircraft serial number 36 has started.

TNT, Lufthansa Cargo team up for Thai spectacle of light

TNT and Lufthansa Cargo say they worked together to ensure the safe arrival of equipment needed to stage what organisers say will be Thailand's greatest-ever spectacle of light to mark the 60th anniversary of King Bhumibol Adulyadej's accession to the Thai throne.

The light and water show on June 17 is just one of the many highlights spread over several days to mark the occasion. The light extravaganza required special high-tech equipment to be flown in from Germany and logistics support from TNT and Lufthansa Cargo.

Close to 12 tonnes, or 83 individual items, of high-value show equipment was airlifted from Frankfurt to Bangkok on a Lufthansa Cargo MD-11 Freighter on June 6. The consignment, which was made up of aquatic and audiovisual systems, was transported first by road onboard TNT lorries to Frankfurt airport from Lugano, Dresden and Wuerzburg.

When the show is over, TNT and Lufthansa Cargo will be responsible for flying all the equipment back to Germany, a Lufthansa Cargo statement explained.

In other news from the German airline, the carrier has announced that starting September 1 it will be put in charge of marketing cargo capacity and freight handling for AirMadrid across the Spanish carrier's entire network.

The partnership is regarded as a win-win situation as it will at the same time help Lufthansa Cargo strengthen its network coverage by offering point-to-point services to and from South America.

AirMadrid flies from Barcelona and Madrid to major cities in Argentina, Brazil, Chile, Colombia, Ecuador, Peru, Costa Rica, Panama and Mexico. "Co-operation is massively strengthening our presence in South America," said Andreas Otto, a member of the Lufthansa Cargo Executive Board responsible for Marketing and Sales.

As part of the deal, Lufthansa Cargo will open five new handling stations in Latin America, a company statement said.

CKYH lines to strengthen co-operation

TOP delegates from Coscon, "K" Line, Yang Ming and Hanjin attending the CKYH Alliance Summit on June 7 in Miyazaki, Japan have agreed to strengthen their co-operation with one another in order to help develop not only the group's East-West service offerings but its North-South trades as well.

The liner alliance members acknowledged there is a need for member lines to continuously find ways to make CKYH's services "the most effective in the industry", a "K" Line statement issued on behalf of the shipping consortium said.

The group also stressed there was an urgent need to review existing service patterns, especially in the Asia-Europe trades as bunker fuel prices continue to soar and operational costs are rising.

CKYH alliance members currently offer seven East-West loops between Asia and Europe and six loops between Asia and the Mediterranean region. The group provides 14 loops on the Asia-US west coast trade and five loops servicing the US east coast, in addition to four transatlantic trade loops connecting Europe/the Mediterranean and North America.

Fesco orders containership

RUSSIA-BASED Far East Shipping Company (Fesco) recently placed its sixth order with Poland's New Szcezecin Shipyard (SSN) for another 2,800 TEU vessel to be delivered in 2009.

This latest order by Fesco is in addition to the company's pre-existing orders with SSN for two other 2,800 TEU vessels, due for delivery in late 2008 and early 2009 as well as three 1,730 TEU vessels which will join the line's fleet in 2007 and 2008, according to TradeWinds.

SSN currently has orders for 24 container vessels and a number of other newbuilds.

SSN is also reportedly collaborating with Vietnam Shipbuilding Industry Corp. (Vinashin) to supply designs and equipment such as engines, generators and rudder horns for two 1,100 TEU containerships and a further two 700 TEU vessels, the industry paper said.

Jurong port's May throughput volume falls 17pc y-o-y

SINGAPORE's multipurpose port of Jurong handled 64,000 TEU in May.

This represents a drop of 16.88 per cent compared to the same month a year ago when the hi-tech facility handled 77,000 TEU.

The cumulative volume of cargo handled by the port during the first five months of the year amounted to 353,000 TEU, down 4.08 per cent compared to the January to May period last year.

Port authorities did not give any reason for the decline in cargo volumes passing through the port in releasing the latest throughput figures.

Death of stevedore in Melbourne lands P&O Ports A$500,000 fine

P& O Ports Ltd in Australia has been fined A$500,000 (US$368,761) after pleading guilty to charges that it failed to provide and maintain a safe work environment which resulted in the death of one of the company's stevedores.

Stevedore Jeffrey Gray died aged 45 when he was crushed by a container at Melbourne's Footscray dock in June 2003. He then plummeted into a ship's open cargo hold eight metres below.

A report carried by ABC News in Australia said that the Victorian County Court judge was told at the hearing that just one week before Mr Gray's death a health and safety inspector had recommended P&O Ports install harnesses for use near open cargo holds above a certain height limit.

Chairman Blust to leave US Maritime Commission

US Federal Maritime Commission (FMC) Chairman Steven Blust has announced his intention to leave the agency once his current term in office is completed and his replacement nominee has been confirmed by the US Senate.

Mr Blust has been serving as chairman since joining the agency in August 2002. His term officially ends on June 30.

A statement issued by the commission said that Mr Blust intends to continue to pursue a career in maritime trade following his departure from the advisory body.

"I believe that we at the FMC have helped contribute to the success of the international maritime industry by fostering fairness and efficiency in the US maritime commerce," said Mr Blust.

"Chairman Blust has implemented a number of much needed reforms in the commission's regulations. These important reforms have increased competition in international ocean transportation while reducing the commission's regulatory burden on the important players in this vital industry," said Commissioner Rebecca Dye.

Under Mr Blust's leadership, non-vessel-operating-common-carrier service arrangements, or NSAs, were instituted. NSAs permit NVOCCs to offer services through negotiated and confidential service arrangements with shippers as an alternative to providing service under tariff rates.

Mr Blust also helped secure the 2004 bilateral Maritime Agreement between the US and China to remove anti-competitive barriers to key markets and industry segments.

FedEx unveils critical inventory logistics service

FEDEX has launched a new supply chain service called, FedEx(R) Critical Inventory Logistics to manage customers' high value and time critical stock. The new service will focus on customers in the telecommunication, semiconductor, biomedical and other hi-tech industries.

"Customers are increasingly looking to FedEx for our expertise in managing just-in-time, critical inventories," said Tom Schmitt, president and chief executive officer of FedEx Global Supply Chain Services. "Customers realise that this service will significantly lower their costs by reducing inventory while providing more efficient network planning and the ability to choose shipping options based on timing and cost."

A group statement said that the FedEx network of companies will be utilised to provide this service, including FedEx Global Supply Chain Services for customer service, operational management, storage and distribution; FedEx Kinko's and FedEx Express locations for the forward deployment and distribution of parts; FedEx Express, FedEx Ground and FedEx Freight for next day shipping; and FedEx Custom Critical for urgent, same day service.

The company explained that FedEx Critical Inventory Logistics has been created to enable customers to deploy replacement parts at FedEx Kinko's centres throughout the United States, many of which are located near hospitals and business centres to allow customer representatives to pick up replacement parts at a moment's notice.

EVA enters into cargo JV with Shanghai Airlines

HOPING to tap into China's fast growing air freight market, Taiwanese airline EVA Airways has announced that it will buy a 25 per cent share in a cargo joint venture with Shanghai Airlines, the Shanghai Daily reports.

According to a statement issued by the Taiwanese airline the 25 per cent share in Shanghai Airlines Cargo International will cost EVA US$3.88 million. The deal will reportedly help EVA to build its global sea and air intermodal logistics network.

EVA Airways is said to be hoping the tie-up would enable cargo to be transferred from the mainland through Hong Kong or Macau to EVA's network.

"Investment in the new cargo venture can help complement each other's business," the spokesperson said.

The cargo business, which will focus primarily on international cargo, will use Shanghai Pudong International Airport as its base.

Shanghai Airlines' board secretary, Xu Junmin, said that the JV's maiden flight is expected to take off in late June or early July.

Korean Air to start service to Las Vegas

KOREAN Air plans to begin offering direct non-stop service between Seoul and Las Vegas three times a week from this autumn, after representatives from the carrier met with Las Vegas tourism officials to sign a deal earlier this month.

A Reuters report cited an airline official as saying that Korean Air will deploy Boeing 777 planes on the service which is intended to boost the number of South Korean tourists visiting the US city and strengthen the carrier's service offering to North America.

The news agency said the new service is scheduled to begin in September and market demand is expected to be strong given that about 200,000 South Koreans visit Las Vegas each year, making the nation the fifth greatest source of overseas tourists to the gambling mecca of the world.

Las Vegas officials are also said to be keen to attract more tourists and convention visitors from other parts of Asia, with particular focus on the enormous China market, the report claimed.

"Las Vegas is a growing market. It is changing its colours from a city backed by gambling to a place with great golf resorts, restaurants and family entertainment," said Lee Hyoung-woo, a spokesman for Korean Air.

HK Airport Authority seeks new CEO

DAVID Pang, Chief Executive Officer of the Hong Kong Airport Authority, will not be seeking a third term in office after he completes his current second three-year term, according to an announcement from the group's Chairman, Victor Fung.

As a result, Mr Fung will head a selection committee to initiate a global search for Mr Pang's replacement, an Airport Authority statement said.

"David has built a solid process-driven organisation, which has led Hong Kong International Airport (HKIA) to consistently improve its financial and operational performance," said Mr Fung.

"Under the guidance of the board and with the full support of the management team, David has redefined HKIA's business, market and product, creating a very strong foundation for our airport to achieve long-term sustainable growth," he added. Mr Pang is expected to remain in his present post until a successor is found.

Zim Asia-Gulf of Mexico service to set sail soon

ISRAELI shipping line Zim says that it will launch a new twice-weekly express service between Asia and the Gulf of Mexico (AGX) on June 22.

The port rotation for the AGX will be: Shanghai (Waigaoqiao Phase 1), Ningbo, Pusan, Colon, Kingston, Tampa, Mobile and Houston.

Nine containerships will be deployed on the new route, each of which has a capacity of 3,000 TEU, a statement from the company said.

China's trade surplus soars 136pc in April

CHINA's trade surplus with the world grew 136 per cent in April, amounting to US$10.46 billion.

The value of China's total trade in April rose 19.8 per cent over the same month a year ago to $143.44 billion, Xinhua reported based on the latest Customs statistics compiled by the Ministry of Commerce.

Within this total, the value of China's exported commodities grew by 23.9 per cent to $76.95 billion, while the value of imported goods rose 15.3 per cent over 2005 to $66.49 billion.

In the first four months of the year, China's cumulative trade value surged 24 per cent year-on-year to $514.72 billion, with the value of exported goods increasing 25.8 per cent to $274.23 billion and imports up 22.1 per cent to $240.48 billion.

This means China's trade surplus with the rest of the world has grown by a staggering 61.4 per cent during the January to April period, amounting to a surplus of $33.75 billion in China's favour.

Zim orders eight mega vessels

ISRAELI shipping line Zim has announced plans to purchase eight mega container ships from Hyundai Shipyards in South Korea for US$1 billion.

Four of the vessels on order will each have a container capacity of 8,200 TEU, while the remaining four ships will be of the 10,000-TEU variety. The shipping line is expected to take delivery of the ships during the second half of 2009.

Zim said in a statement the acquisition of the new ships was intended to help the company prepare for future developments in world shipping, and was part of a drive to double its carriage capacity and increase profitability within five years.

These ships are also expected to enable Zim to upgrade existing services, decrease transit times to various destinations and expand the number of the company's liner services that ply the trade to Asia, America and Europe, the release added. The deal would be financed by the company's existing capital, following a bond issue last year.

Carriers take advantage of growing Indonesia-African trade

TWO of the world's largest shipping lines have sought to take advantage of the rising trade between Indonesia and the African continent.

Both Maersk Line and French shipping company CMA CGM are set to commence direct services between the two places, the Jakarta Post reports.

Maersk said in a recent statement that it would deploy five vessels on its new weekly East African service, which will commence its journey from the port of Tanjung Priok in Indonesia.

CMA CGM, meanwhile, is set to deploy 10 vessels on its new Asia-Africa service, which also makes a port call at Tanjung Priok, according to the Indonesian paper.

The French shipping line's service will stop at several other destinations including Shanghai, Ningbo, Hong Kong, Singapore, Port Klang, Durban, Luanda, Pointe Noire, Lome, Abidjan, Tema, Tintan, Douala and Port Gentil.

Australian Customs: ICS implementation could have been `smoother'

AUSTRALIAN Customs are looking to hire a deputy chief executive officer to deliver the recommendations outlined in a report into the fiasco following the implementation of its new Integrated Cargo System (ICS) late last year, which resulted in a backlog of imported cargo at Australian ports.

"Quite clearly a significant proportion of industry experienced problems following the introduction of the imports component of ICS. Customs acknowledges there are things that it could have done to make the implementation smoother," said Customs Chief Executive Officer Michael Carmody, following a meeting in Sydney between his agency and industry representatives to discuss the findings of the review.

A statement from Australian Customs said they accepted all the recommendations contained in the ICS review carried out by independent consultants Booz Allen Hamilton and acknowledged that the implementation and transition period were difficult.

"The report also delivers a number of lessons for customs that will assist not only in the continuing development of ICS but also in future major systems developments," Mr Carmody said.

Mr Carmody said his officers would establish a new management structure to oversee future ICS development. Agreement was also reached at the meeting to form a series of joint working groups to explore potential improvements in trade facilitation. Customs will also continue to work closely with industry through an existing advisory group to improve the ease of use of the ICS.

"Initial working groups will focus on the benefits and feasibility of adopting the US 24-hour load rule for cargo reporting and the development of an Authorised Economic Operator programme consistent with international supply chain security initiatives," Mr Carmody said.

Furthermore, customs vowed to set up a new senior-level steering committee, including industry representatives, to provide strategic direction and oversight for the ongoing programme of improvements to the ICS.

Work on new Ho Chi Minh container port to commence

JOINT venture partners P&O Ports, which is now owned by DP World, and Vietnam-based trade promotion company, Thuan Industrial Promotion (TIPC), are set to commence work on a new US$250 million container terminal in Ho Chi Minh City's Nha Be district, reports Thanh Nien News.

The container terminal will be equipped with advanced technologies and facilities enabling it to handle up to 1.5 million TEU.

The project, which is expected to be completed in 2008, will eventually replace the existing terminals along the Saigon River that are due to cease operations over the next 10-15 years, the news agency said.

Sinokor opens Malaysia office, launches Asian service

SOUTH KOREA-BASED shipping line Sinokor has recently opened a new office in Malaysia in collaboration with local company, Metroport Shipping, in a bid to strengthen its presence in the country.

A Sinokor spokesperson told the Shipping Gazette in a recent interview that with the establishment of the new office in Malaysia, Sinokor was hoping to provide its regional customers with more precise and timely information.

"In this respect we are hoping to provide our valued customers with easier access to Sinokor services," the spokesperson said.

Sinokor, which is now focusing on establishing feeder connections in both Singapore and Malaysia and handled 50,000 TEU last year, marked the opening of its new office with the launch of a new service, the IMS 2, running from Port Klang and stopping in Singapore, Hong Kong, Ulsan, Pusan and Incheon.

Looking ahead, the spokesperson acknowledged the challenges that the shipping industry was facing this year as bunker prices continue to rise and customers push for lower rates.

"The shipping business has some difficulties ahead, but the situation could be better through closer relationships between shipping lines and their customers," the spokesperson said, adding that more co-operation would lead to a mutually beneficial outcome for all concerned parties.

Hactl questions Cathay/Dragonair merger

HONG KONG Air Cargo Terminals Limited (Hactl) has warned that a proposed merger between the city's leading carriers, Cathay Pacific and Dragonair, would have a negative impact on airlines, cargo terminal operators and freight forwarders in the SAR and make the local air freight industry less competitive.

The Hactl statement follows an announcement last week that Cathay Pacific will acquire 100 per cent of Dragonair. Cathay is also currently applying to the Airport Authority for approval to establish a self-handling air cargo facility at Hong Kong International Airport to take over the business previously provided by Hactl on behalf of the airline.

"The merger of the two airlines if combined with cargo self-handling would therefore create a dominant, vertically-integrated air cargo operation", the Hactl release said.

Hactl is urging local authorities to "carefully weigh" the implications of such a merger and its effect on the rest of the air cargo industry when considering future cargo handling needs at Hong Kong International Airport.

"Any decision by the Airport Authority as to the future capacity requirements for Hong Kong International Airport will have long term consequences for its thriving cargo handling and logistics industry. There must, therefore, be a process of full and open consultation with all stakeholders", the Hactl statement said.

It added that Cathay Pacific and Dragonair's combined cargo volume is currently 40 per cent of Hong Kong International Airport's total.

MASKargo receives freighter

MALAYSIAN Airlines' cargo division MASKargo has received its second Boeing 747-400 freighter recently, Malaysia's The Star newspaper reports.

The delivery of the new plane also marks the completion of MASKargo's order for two 747-400s from the US aircraft manufacturer.

On hand to witness the official handing over of the aircraft was Malaysian Transport Minister, Seri Chan Kong Choy.

"I am happy to see the delivery of the B747-400F by MASkargo. The new aircraft will not only improve the capability and reliability of MASkargo but also enhance its position as an important cargo carrier which in turn will directly improve foreign direct investment," the minister said.

MASKargo's senior general manager (Cargo), J J Ong, said that the new freighters will help to further boost the company's bottom line by lowering operational expenses as the B747-400 freighters are more fuel efficient than the older aircraft in the carrier's fleet and are currently the largest commercial air cargo freighters in the industry.

"In the future, MASkargo looks forward to convert more passenger aircrafts to freighter flights to help grow the cargo business and what's good is that it is more cost efficient," Mr Ong said.

Qantas Freight to become GSA for ABC in Australia

HEAVYWEIGHT air cargo specialist AirBridge Cargo (ABC) has announced the appointment of Qantas Freight as its general sales agent (GSA) and interline partner in Australia.

This latest development is in line with AirBridge Cargo's strategy to work with other leading airlines around the world to achieve network expansion and revenue growth, said a statement from the carrier, a member of Russia's Volga-Dnepr Group.

Stan Wraight, vice president of Volga-Dnepr Group responsible for scheduled cargo services, said: "We are delighted to be working with Qantas Freight, a professional and entrepreneurial airline that shares our own commitment to high quality customer service.

"We will be interlining with Qantas in China and Hong Kong to open up strong two-way trade lanes between Australia and the rapidly expanding Russian marketplace. We will be looking to expand on this agreement by developing opportunities with Qantas Freight in other areas."

Stephen Cleary, general manager of Qantas Group, added: "Qantas Freight will market and sell both AirBridge Cargo's scheduled and charter services. This agreement represents a good business fit and will enable us to maximise the synergies between our two organisations in terms of seeking opportunities in new and emerging markets."

The GSA agreement, effective from June 1, is initially for a period of two years.

Hutchison to take 3 per cent stake in Tianjin Port IPO: report

HONG KONG’s Hutchison Whampoa is expected to take what Xinhua News Agency has described as a “strategic stake” in the Initial Public Offering (IPO) of Tianjin Port.

The state media quoted a statement from an unnamed person close to the deal saying that Hutchison Whampoa has “verbally agreed” to buy a three per cent stake in Tianjin Port Development Holdings. Other reports put that figure at around nine per cent.

Tianjin Port is being spun off by state-owned Tianjin Development Holdings and is scheduled to be listed on the Hong Kong Stock Exchange in late May.

Unnamed analysts said in the report that the rapid growth of Tianjin’s economy will be a key factor in propelling the performance of Tianjin Port’s shares once they are listed on the Hong Kong bourse.

China's economy growing faster than expected

CHINA’s economy may expand 9.5 per cent this year, a rate significantly higher than the official target of eight per cent, the country’s Vice-Minister of Finance, Li Yong, said earlier this month.

He admitted that the government was mulling a second increase in interest rates this year in order to rein in growth.

“We have to control investment among local governments,” Mr Li said on May 6 at the annual meeting of the Asian Development Bank in Hyderabad, India, adding that China might raise its key lending rate once more “when appropriate”.

Following an announcement that the country’s economic growth in the first quarter of this year was 10.2 per cent, the Central bank adjusted its one-year lending rate for the first time since October 2004, increasing it by 0.27 per cent on April 27.

“I think in the future we will make interest rate adjustments if necessary, but we should not make abrupt adjustments,” said the Vice-Minister in an article by UK tabloid The Independent.

Mr Li said that an investment and exports boom was driving the economy. However, growth of eight to nine per cent was also possible “because there could be more tightening policies.”

He said that apart from restraining economic growth, the government was anxious to deal with its trade surplus. “We try to achieve a balance between imports and exports,” he stated.

“China isn’t slowing down any time soon,” commented Joseph Tan, a Singapore-based economist at Standard Chartered Bank.

China’s official growth prediction for this year, made public in a Commerce Ministry report issued on October 19, is eight per cent.

Hactl April throughput up 2.6pc

HONG KONG Air Cargo Terminals Limited (Hactl) handled a throughput of 210,426 tonnes of cargo in April, a year-on-year growth of 2.6 per cent, a company statement announced.

Total throughput over the first four months of 2006 was 786,542 tonnes, up 6.6 per cent over the same four-month period last year.

The company’s statistics show that the volume of exports in April grew 3.3 per cent year-on-year to 120,923 tonnes, while imports during the month increased by 2.7 per cent over April 2005 to total 57,647 tonnes

Transshipment volume in April fell slightly from the same month last year by 0.3 per cent to 31,856 tonnes. However, Hactl said in the statement that the transshipment volume for the first four months was 128,886 tonnes, up 11.4 per cent compared to the same period last year.

Aggregate export volume for the first four months was 438,227 tonnes, up 6.4 per cent compared with the same period last year, while import volume from January to April was 219,429 tonnes, a year-on-year rise of 4.4 per cent.

Northwest looking to fly between Xiamen and Tokyo

A NORTHWEST Airlines (NWA) Boeing 747-200 freighter recently carried 80 tons of cargo from Gaoqi International Airport in Xiamen to Tokyo, Japan during a trial run of a possible service between the two cities, according to mainland state media.

Xinhua said NWA is exploring mainland business prospects and has already launched scheduled cargo flights from Shanghai and Guangzhou. The airline is reported to be looking at potential profit levels, airline network issues and market security in Xiamen, before deciding whether the city will be its third mainland cargo destination.

China to build 2 new port clusters

CHINA plans to build an important new port complex close to Taiwan, its Minister of Communications has announced at a recent sea transport forum in Tianjin.

The complex, to be built around Xiamen in Fujian province, will be one of two new port clusters, with another scheduled to be built in Hainan and southern Guangdong province, the minister, Li Shenglin, told the China Daily in a special interview.

These two clusters will be in addition to existing ones around Shanghai, Shenzhen and Tianjin.

The minister was quoted as saying that the Xiamen port was in preparation for “mainland-Taiwan free trade relations”. Taiwan currently bans direct shipping links with the mainland.

The port expansion plan, which involves building ports in Xiamen, Fuzhou, Quanzhou, Putian and Zhangzhou, is part of a “Western Shore Economic Zone” planned for the Taiwan Strait.

The other port project will link Zhanjiang and Fangcheng in Guangdong with Haikou, the capital of Hainan island, to form a container transportation system. The facilities will also be used to import and reserve crude oil and natural gas, as well as to handle containers and mineral resources.

OnePort 'fiasco' losing

HK$20m annually

HONG KONG’s troubled OnePort Limited, a company set up to improve the efficiency of container movements through the port of Hong Kong and to help the local transport industry to file shipping documents electronically, is reported to be losing around HK$20 million (US$2.58 million) per year.

As a result of this loss, OnePort’s future purpose is being called into question by the very industry it was formed to serve, according to a senior Hong Kong industry executive.

“OnePort is spending about HK$20 million on the ETR (electronic terminal receipt scheme) per year...and it basically has no income, or very little,” the industry source told the Shipping Gazette during a recent interview.

“Shippers don’t really see the value of the service.”

OnePort, which is a subsidiary of Hong Kong’s three container terminal operators HIT, MTL and Cosco-HIT and Tradelink Electronic Commerce Limited, spends around HK$20 million per year on providing services that SAR’s shippers have so far decided they don’t wish to pay for.

OnePort works under a dues system in which shippers can use the ETR system or a letter of guarantee. “This was causing a lot of confusion in the market and both container lines and freight forwarders are unhappy because they have to maintain the two systems,” the industry insider claimed.

OnePort works on a cost recovery basis and it depends for revenues on the number of users, which at the moment is not many.

“So much has been invested over the past five or six years, they don’t want to see the investment go down the drain,” this person said, adding everything about the service needs to be rethought.

He said at the moment shippers don’t believe the ETR alone gives enough value to warrant being charged by OnePort and therefore container terminal operators and OnePort all agree that it should be a free service until an alternative becomes available or a standard charge has been agreed upon.

ETR could eventually become a part of a total services scheme that would be charged to users, which would have to be agreed upon by all parties, the source added.

At present OnePort offers shippers value-added services such as track and trace of cargo and the ability to check the entry and loading time of boxes.

Charges that OnePort seeks to impose range from a few hundred dollars to a few thousand dollars per month, depending on the volume of transactions and all the services that shippers and freight forwarders require.

OnePort had sought to increase its revenue by charging a much larger number of users including shippers, truckers and freight forwarders earlier this year when a planned implementation of charges was mooted.

In terms of numbers of users OnePort would like to service, the industry executive said “there were about 50,000 shipper users, 1,000 freight forwarders and 3-4,000 truckers” the company was targeting.

E R Schiffahrt newbuild to be

chartered by Cosco

AN official naming ceremony has been held for the latest container ship to join the burgeoning E R Schiffahrt fleet at the Hyundai shipyard in Samho, South Korea.

The vessel named the “E R Tianping” is a super-post-panamax newbuilding with a container capacity of 8,000 TEU.

The containership is part of the shipping line’s newbuilding programme, which will see a further 16 vessels with a container capacity of 77,000 TEU being delivered by 2008. All are to be built by Hyundai in South Korea.

This latest vessel brings the number of vessels in the E R Schiffahrt operating fleet to 62 with a total capacity of about 273,000 TEU.

The new ship will operate under the charter name “Cosco Napoli” and will be deployed on the North China Express (NCX) service that links Asia with Northern Europe for the Chinese shipping line, Cosco, a statement from E R Schiffahrt explained.

E R Schiffahrt is part of the Nordcapital Group based in Hamburg, Germany.

FedEx sets up subsidiary in Nanjing

FEDERAL Express (FedEx), a global provider of logistics and delivery services, has announced the recent opening of a Nanjing subsidiary that is expected to help the company to further strengthen its presence in Jiangsu province and the rest of eastern China.

The subsidiary, which has already started operation, is located in Nanjing’s Jiangning Development Zone, and occupies a 2,340-square-metre plot of land. It has special import & export sorting and picking facilities, a storage area and an operations department and is able to handle nearly 1,000 parcels every hour.

According to FedEx, the demand for international express services in Nanjing comes from almost all export-oriented industries in the city, including the hi-tech electronics, textile, garment and light industry sectors, while the export destinations cover the major markets of the US, the EU and Southeast Asia.

The demand for cross-border express services for hi-tech and high value-added products is also said to be growing very fast, Xinhua reported. Apart from the new office in Nanjing, FedEx has presences in two other cities in Jiangsu province, Suzhou and Wuxi.

In addition to cargo handling facilities in Beijing, Shanghai and Shenzhen, the company now has 26 subsidiaries and 38 operation centres in China, serving more than 200 cities nationwide.

China aircraft numbers expected to double by 2011

AIRLINES in mainland China intend to almost double the number of their aircraft in the next five years, according to a report in the China Daily.

The report, citing Gao Hongfeng, vice-minister of the Civil Aviation Administration of China, said that to meet the growing demand of air travel and cargo transportation, airlines would increase their combined fleets to 1,580 aeroplanes in 2010 from 863 at present.

By 2025 the number could be 4,000 - a massive increase from the total of around 500 aircraft in 2000.

Last year mainland airlines handled a total of 3.06 million tons of cargo, up 13.8 per cent on 2004, the paper said.

13.05. 2006

Yantian to build 29 new

deep-water berths

SHENZHEN’s Yantian Port area will be expanded by 29 new deep-water berths by 2010 to meet surging demand for container transportation services.

Container terminals in Shenzhen have been operating at over full design capacity, according to the Shenzhen Communications Bureau, Chinese state media reported.

Statistics from the bureau show that the handling capacity of Shenzhen Port in 2005 amounted to 9.15 million TEU. But in reality, the volume of cargo passing through Shenzhen’s various port areas grew to 16.19 million TEU over course of the year, 77 per cent over the actual handling capacity.

The decision to construct the additional berths is timely as a report by Xinhua News Agency said that the Shenzhen Communications Bureau is forecasting the port area’s container throughput will reach 12 million TEU by 2010, rising to 18 million TEU in 2020.

As a result, port authorities have given the green light to plans to build six new berths in the western part of the port, 15 in the middle and eight in the eastern section of Yantian, according to the Shenzhen Communications Bureau.

The plan calls for Shenzhen port authorities to invest about CNY37 billion (US$4.62 billion) in construction, which covers the cost for 27 of the deep-water berths plus 44 medium and small sized berths. This includes twenty 50,000-tonne-plus container berths to boost container handling capacity by about 10.5 million TEU.

In a separate development, Xinhua reported that publicly-listed company, Yantian Port Holdings, saw a return to earnings growth in the first quarter of this year, after posting a net profit of CNY144 million (US$17.99 million), up 24.85 per cent over the same period last year. Operating revenue, meanwhile, grew 12.77 per cent to CNY161.83 million during the first three months of the year.

RCL's Q1 net profit down 38pc

REGIONAL Container Lines (RCL) posted a THB811.7 million (US$21.48 million) group net profit for the first quarter of the year, a 38 per cent decline compared to the same period a year ago.

The Thai shipping line attributed the disappointing result to escalating fuel costs combined with an increase in volume being offset by softer freight rates on its intra-Asia routes. Freight rates, the company noted in a statement, began falling in the fourth quarter of 2005 when more tonnage was phased in to the company’s main trades as the slow season got underway.

The cost of freight and operations therefore rose 19 per cent year-on-year to THB3.97 billion.

The company, however, said that as regional currencies strengthened against the US dollar during the reporting period, the group recorded a gain on exchange of THB124.5 million against a loss on exchange of THB25.7 million in the same quarter last year.

Other positive developments for RCL include the recording of an eight per cent increase year-on-year in overall liftings during the first three months of the year to 575,279 TEU.

The group’s carrier owned container (COC) liftings were up 15 per cent year-on-year at 291,108 TEU. Shipper owned container (SOC) liftings registered modest growth of two per cent year-on-year at 284,171 TEU.

Taicang's first quarter throughput breaches 100,000 TEU level

STATISTICS provided by the port authority in Jiangsu’s Taicang City show Taicang port handled 101,400 TEU in the first quarter of this year, an increase of 156 per cent, Xinhua reported.

In addition, it processed 4,463,600 tons of cargo during the first three months of 2006, an increase of 42.5 per cent over the same quarter a year ago.

In March alone, Taicang’s throughput reached 39,750 TEU, which is the biggest monthly container transport volume ever recorded at the port, according to the report.

Carrier optimistic about container

market this year

ONE of the leading Chinese shipping carriers says that the picture painted by some analysts of only sluggish growth in the international container shipping market is very far from the truth.

A document drawn up by the company comes to the conclusion that 2006 will be a good year for the shipping industry.

It cites a report from Drewry Shipping Consultants. This says that although 2006 is the year in which most of the newly built large vessels will be delivered and the rate of increase in capacity globally is expected to be 15.7 per cent, actual capacity will increase by only 9.7 per cent, the report said. This implies that there will not be a significant global imbalance between supply and demand.

Drewry, the line said, has made growth forecasts for the transpacific and Far East-Europe trades that are generally about 4-5 per cent too low. It is quite possible that transpacific trade will increase much more than the 8.5 per cent and the Far East-Europe trade upwards from the 10.3 per cent that Drewry forecasts, says the document.

Demand on the principal routes is vigorous, it says, with slot utilisation rates for container vessels rapidly rebounding after the Lunar New Year holiday.

On transpacific routes, both to the US east coast or US west coast, slot utilisation has reached over 90 per cent, with vessels of some carriers full to bursting, according to a report issued in the middle of March this year by the Transpacific Stabilisation Agreement (TSA). Containerships operated by carriers belonging to this organisation on lanes between Asia and the east coast of the US travelling via the Panama Canal have been almost 100 per cent full since January 1 this year. Those travelling between Asia and the west coast of the US have not been less than 90 to 95 per cent full.

The document from the Chinese carrier quotes a statement from the Far East Freight Conference (FEFC) that the development of shipping industry this year is quite different from what some general market analyses predicted.

Far from facing a downturn, the industry is continuing to boom.

At present, there is an increasing demand for capacity on major international routes. For example, the shipping volume for the Far East-Europe route increased by 13 per cent in the first quarter of this year, with the most robust growth occurring in March.

Performance in April was also good. As the market demand for shipping is still greater than the supply, shippers are having to accept the reality of rate rises.

The Chinese carrier adds the gradual shift to greater trade activity that normally starts for the container industry in June began in April this year. This has provided a very good foundation for carriers to arrange rates for the whole year. So, judging from these different factors, 2006 looks like being another good year for the industry, it concludes.

Harbin-Manzhouli railway to add

second track

A SECOND track is reportedly being laid parallel to the existing Harbin-Manzhouli Railway at a cost of CNY1.98 billion (US$247.28 million).

The new track from Hailar to Manzhouli will cover a distance of 187 kilometres. Construction is scheduled to be completed by October 2007, Xinhua News Agency reported.

The report cited officials from Harbin Railway Administration saying that the existing capacity of the Hailar-Manzhouli section of railway is failing to keep pace with trade and the growing demand for freight transportation services in the area. As a result, a decision was made by the local government to add capacity by constructing a new line.

The 934 km Harbin-Manzhouli railway was built in 1903 and forms a key part of the Eurasia Land Bridge, which provides an important overland transportation route between Europe and Asia.

Spending on China airports expected

to take off

SPENDING on airports in mainland China is set to soar in the next five years, according to the Civil Aviation Administration of China (CAAC), the country’s aviation industry watchdog.

More will be spent on airport development in the next five years than was spent in the past 15, Zhao Hongyuan, a senior CAAC official, has told the China Daily. CNY140 billion (US$17.4 billion) has been set aside from this year until 2010 for this purpose, compared with the CNY120 billion spent between 1990 and 2005.

The bulk of the money will be used to build 42 new airports and to upgrade existing infrastructure, Mr Zhao told the paper.

The number of airports would rise to about 190 from the 142 at present, he said, with the total reaching 220 by 2020.

The initial step will be to build up Beijing, Shanghai and Guangzhou airports as international hubs, with Chengdu, Kunming, Xian, Wuhan and Shenyang becoming regional hubs.

Regions outside the developed coastal and eastern regions will also benefit from the allocation. According to the Xinhua News Agency, Southwest China’s Yunnan province intends to invest over CNY20 billion in airport projects over the next five years, making up almost one-seventh of the national total.

By 2010 the province will have 15 airports compared with 10 at present. This will link all parts of Yunnan with the outside world, particularly with southeastern and southern Asia.

Experts cited by China Daily said that airport development was vital to keep pace with the boom in air traffic.

CAAC said that it expects passenger and cargo traffic to grow at a 14 per cent clip each year until 2010, with growth slowing to 11 per cent per annum from 2011 to 2020.