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CMA CGM to acquire NOL in $2.4 billion deal

The deal is subject to approval by antitrust authorities.

CMA CGM will make Singapore its Asian regional headquarters and will continue operations under the historic APL branding/ 

Rodolphe Saadé, Vice-Chairman of CMA CGM, said: “This transaction will represent a significant milestone in the development of CMA CGM. Leveraging the complementary strengths of both companies, CMA CGM will further reinforce its position as a leader in global shipping with combined revenue of $22 billion and 563 vessels. By bringing together the know-how of both teams, the enlarged group will be even better positioned to provide premium services to its customers across all markets. At a time when the shipping industry is facing strong headwinds, scale is more critical than ever to capitalize on synergies and capture growth opportunities wherever they arise. I firmly believe CMA CGM will enable NOL to address the industry’s new challenges. We recognize the strategic importance of Singapore as a key hub for the maritime industry and we are committed to reinforcing its regional leadership.”

Ng Yat Chung, CEO of NOL, said: “The combined market presence delivered by the transaction would achieve the scale needed to enhance competitiveness for NOL’s operations and offer a clear and sustainable long term direction for the combined entity. The transaction would enable NOL to grow as part of a larger entity with the resources of the world’s third largest container shipping line.”

Tan Chong Lee, Head Portfolio Management at Temasek, said: “We are supportive of this transaction as it presents NOL with an opportunity to join a leading player with an extensive global presence and solid operational track record. The combination of NOL and CMA CGM will create a leading shipping company that delivers reliable and efficient service to its customers. Their complementary strengths will yield mutually beneficial results. We also note and welcome the commitment of CMA CGM to enhance Singapore’s position as a key maritime hub and grow Singapore’s container throughput volumes.”

Created in 1978 by Jacques Saadé, CMA CGM is the world’s third largest container shipping firm, with 469 vessels and a global market share of 8.8%. In 2014, the Group handled over 12 million TEUs and generated $16.74 billion in revenues. A founding member of the Ocean Three Alliance with UASC and CSCL, CMA CGM is present across 160 countries, with 22,000 employees in 655 offices, and has a fleet capacity of 1,781 thousand TEUs.

NOL is a leading shipping company operating under the American President Lines (APL) brand. In 2014, the company’s revenues reached $7.04 billion. Currently, NOL has more than 7,400 employees in 180 offices across more than 80 countries and operates 94 vessels, representing 618 thousand TEUs in fleet capacity.
The acquisition will see CMA CGM emerge with a capacity of 2,399 thousand TEUs and combined fleet of 563 vessels, a market share of approximately 11.5% (vs 8.8% for CMA CGM and 2.7% for NOL) and a combined turnover of $22 billion.

CMA CGM has a leading position on the Asia-Europe, Asia-Mediterranean, Africa and Latin America routes, whilst APL is strong along the Transpacific, Intra-Asia and Indian subcontinent shipping routes. The enlarged entity will strengthen its position on strategic shipping routes, especially in key markets such as United States, Intra-Asia and Japan, and will boast a balanced trade portfolio. Following the transaction, the combined group would hold market shares from 7% to 19% on the routes on which it operates.

CMA CGM says it is looking forward to welcoming APL into CMA CGM’s world and intends to retain and develop the APL brand. With a historic presence in the U.S., APL will add to CMA CGM’s operations in this region.

Navy awards Ingalls $200 million LPD 28 contract

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According to defense media, BIW will get the additional destroyer under a “hull swap” agreement in a 2002 MOU between the Navy and its two largest shipbuilders that, among other things, reportedly included an agreement that, should a twelfth LPD be ordered,a fourth DDG 51-class ship or equivalent workload would be awarded to BIW.

Apparently, that’s likely to happen and that destroyer will be DDG 127, once Congress comes through with the funding.

However all that works out, the funds awarded Huntington Ingalls under the contract announced today will be used to purchase long-lead-time material and major equipment, including main engines, diesel generators, deck equipment, shafting, propellers, valves and other long-lead systems.

“This funding demonstrates the priority the Navy places on Ingalls getting started on this important ship,” said Ingalls Shipbuilding President Brian Cuccias. “Our shipbuilders have made great strides in the LPD program, and we are performing well. Building LPD 28 is key to maintaining a reliable supplier base and leverages our hot production line, enabling our team of shipbuilders to build this ship and future amphibious warships as efficiently and as affordably as possible.”

Ingalls’ 10th San Antonio-class LPD, John P. Murtha (LPD 26), was the most complete and lowest-cost LPD when launched, with many key systems finished months ahead of the shipyard’s historic best in the program.

Though LPD 28 will be substantially similar to its predecessors, it won’t have quite the same appearance. Gone will be the towering enclosed masts that had been built at HII’s now-closed Gulfport, MS Composites Center of Excellence facility, in their place will be open masts similar to those on the DDG 51 destroyers.

The 684-foot-long, 105-foot-wide LPD 17 class ships are used to embark and land Marines, their equipment and supplies ashore via air cushion or conventional landing craft and amphibious assault vehicles, augmented by helicopters or vertical takeoff and landing aircraft such as the MV-22 Osprey. The ships support a Marine Air Ground Task Force across the spectrum of operations, conducting amphibious and expeditionary missions of sea control and power projection to humanitarian assistance and disaster relief missions throughout the first half of the 21st century.

Rolls-Royce wins China AHTS equipment order

The contract is to equip nine SPA80A Anchor Handling Tug Supply vessels to be designed and built by Sinopacific Shipbuilding Group and owned and operated by the Abu Dhabi National Oil Company (ADNOC) and its wholly-owned subsidiary, ESNAAD.

The vessels will be built at Sinopacific’s Zhejiang Shipyard and the first vessel is due for delivery in 2017.

Each ship will have a bollard pull of 80 metric tonnes will be equipped with Bergen diesel engines, main and tunnel thrusters, electrical power system and a deck machinery package from Rolls-Royce.

“The visit of Rolls-Royce senior executives to Sinopacific in 2013 reinforced the relationship between our two companies as did the provision of  Rolls-Royce integrated equipment packages for Sinopacific’s in-house designed SPA150 AHTS series. This was a first for Rolls-Royce in the Chinese market,” said SinJiang Qiang, Chief Executive Officer of Sinopacific. “The Rolls-Royce Chinese team has provided us with great support by staying close, enhancing communications and giving us confidence for future cooperation. Sinopacific aims to work closely with our strategic partners, such as Rolls-Royce, presenting the best products and services for our ship owners while strengthening our leadership in the most demanding markets.”

“This is a significant contract. It demonstrates our market leading capabilities in a wide range of offshore marine products, and our ability to combine them in a way that creates real value for our customers,” said Richard Wang, Rolls-Royce, Senior Vice President Commercial – Marine.  “We look forward to working with and continuing a profitable and long-lasting relationship with Sinopacific.”

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ABS teams with SDARI on next generation feeder vessel

ABS Senior Vice President and Chief Technology Officer Howard Fireman and SDARI President Jintao Hu signed the agreement yesterday in Shanghai, China. Dr. Christina Wang, Vice President of ABS Operational and Environmental Performance (OEP), Dr. Franck Violette, Director of ABS OEP China, and Gangyi Wang, Vice President of SDARI also attended the signing ceremony.

“Changing environmental regulations, unpredictable energy prices and volatile freight rates have made it imperative for ship designers to continuously improve the operational and environmental performance of their next generation designs,” Mr. Fireman said. “ABS is working with industry as designs change and new concepts are introduced.”

The objective of this project is to develop the next-generation feeder design with a focus on operational efficiency and flexibility.

The project will bring together innovative design and technology solutions with a novel concept that incorporates technology-readiness features to enable cost-effective implementation of present and future regulations by applying extensive life-cycle cost analyses. This innovative feeder container carrier design will meet future market and trade needs that are being driven by the increase in ultra-large container carriers and the growth of specific regional markets.

“SDARI has always promoted ship innovation and technology development. At this crucial moment when China is transforming from shipbuilding nation to a shipbuilding power, the collaboration that we have strengthened with ABS in container carriers positions us to generate new concepts based on market demand and to launch cutting-edge products,” says Jintao Hu, “I believe the development of this new generation of feeder container carriers will further strengthen the partnership between SDARI and ABS, promoting the transformation and upgrading of Chinese shipbuilding industry.”

Harley Marine opts for tug-specific Cat package

They will power two new harbor tugs currently under construction at Diversified Marine Inc.’s Portland, OR, shipyard.

“Much of Harley Marine’s fleet is powered by Cat engines, and with the construction of these two new vessels, they’re adding our tug-specific propulsion solution as well,” said Emil Cerdier, sales manager for Cat Propulsion. “Getting a complete package from one supplier simplifies the design,installation, and service support, allowing Harley to rely on the Cat dealer network as a single point of contact for the entire powertrain system.”

Each Harley Marine harbor tug will feature a pair of 3516 engines, each delivering 2575 hp(1920 kW) @ 1600 rpm and two MTA 524-T thrusters with a 95.5″ inch (2,400mm) propeller diameter.

The MTA 524-T is a new version of a proven design, specifically optimized for the operation profile of a tug. Based on the standard MTA design, the “Tug” rated drives include features to maximize bollard pull, simplify installation and maintenance, and increase maneuverability.

The Harley Marine units will be delivered with custom-made fixed-pitch propellers and a PTO-powered steering and lubrication system.
Cat Propulsion’s complete package for tugs includes engines, high-speed shafting, clutches, and controls. The display consoles for the control system willalso control engine and thruster functionality.

“Our MTA-T units bring the twin advantages of performance excellence and economy to the tug market,” Mr. Cerdier said. “Customers like Harley Marine will benefit both in terms of bollard pull and from the reliability of a consolidated control-engine-thruster package with component parts optimized to work together.”

Cat dealer Peterson Power led the efforts on the project, helping refine the spec and eventually supporting the installation and service of the systems.

As part of the total Cat Solution, Cat Financial is providing complete vessel financing throughout the construction and term of both tugs.

The Cat engines and thrusters are expected to deliver in mid-2016, with vessel deliveries in early 2017.

Vigor awarded $8.9 million for T-AO 202 drydocking

Work by the shipyard will include general services for ship, clean and gas free tanks void and cofferdams and spaces, number seven port and starboard cargo tanks preservation, number two center cargo tank preservation, number ten center cargo tank preservation, close survey inspection, main deck overhead preservation, main house preservation, main engine exhaust insulation replacement, lifeboat repair and maintenance, reefer container installation and underwater hull preservation.

The contract includes options which, if exercised, would bring the total contract value to $9,788,394.

Work will be performed in Portland and is expected to be completed by March 2, 2016. If options are exercised, work will continue through March 12, 2016. Fiscal 2016 maintenance and repair contract funds in the amount of $8,931,411 are being obligated at the time of award. Contract funds will not expire at the end of the current fiscal year.

This contract was competitively procured, with proposals solicited via the Federal Business Opportunities website, with two offers received.

  • The Navy’s Military Sealift Command, Norfolk, VA, is the contracting activity (N32205-16-C-4011).
  • News

Team aims to speed availability of LNG as marine fuel

The team, led by Siemens Drilling and Marine, Dresser-Rand and Lloyd’s Register, aims to provide an end-to-end solution, encompassing the entire supply chain, that will remove obstacles that can hold back wide-spread adoption of natural gas as the marine fuel of choice.

“Our integrated solution, encompassing the entire supply chain of LNG including gas-fueled marine propulsion systems, will remove the chicken-and-egg hurdle from the LNG-equation,” says David Grucza, Siemens Drilling and Marine. “This is a disruptive concept for the maritime industry, and the technology exists for immediate adoption. This joint solution is not limited geographically, and we stand ready to support the marine industry globally, although our initial focus is on deploying U.S. shale gas.”

The initial end-to-end solution offered to the North American inland and coastal waterways community comprises the following elements

  • LNGo liquefaction barge;
  • LNG bunkering barge (C-Type tanks with up to 2,500 cu.m capacity); and
  • 4,200 or higher horsepower river pushboat.

It has been designed and engineered by Waller Marine Inc. (WMI) and the Shearer Group Inc. (TSGI), respectively, and will be constructed by Conrad Industries shipyard in Texas.

“Together, the team brings a holistic answer to the LNG marine fuel question of what comes first – the bunkering station or the engine?” says David Waller, President, Waller Marine, Inc. “The innovative solution to this industry hurdle includes the entire supply chain from liquefaction, LNG bunkering and design, all while meeting EPA and USCG compliance and providing smart, sustainable, lower greenhouse gas alternative fuels to operators.”

“Lloyd’s Register is well placed to support a new fleet of gas-fueled ships – and help them to operate safely and efficiently,” says Mark Darley, Americas Regional Marine Manager and President of Lloyd’s Register North America (LRNA). “Our expertise and leadership in gas technology and operations – from gas carriers to LNG bunkering and gas as a marine fuel – helps lead to the best decisions based on the best, independent, technical insight.”

Lloyd’s Register has established clear standards describing different levels of readiness to use natural gas as a marine fuel. Lloyd’s Register also provides training on the key practical aspects of modern LNG carriage by sea and risk management services to support safe LNG bunkering.

Siemens AG (Berlin and Munich) is active in more than 200 countries, focusing on the areas of electrification, automation and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is No. 1 in offshore wind turbine construction, a leading supplier of gas and steam turbines for power generation, a major provider of power transmission solutions and a pioneer in infrastructure solutions.

Dresser-Rand, a Siemens Business, is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries.

Lloyd’s Register (LR) is the leading classification society in the gas carrier market – both for LNG and LPG – and is also taking a leadership role in the international development of gas as a marine fuel.

Waller Marine, Inc. is a global leader in the design of Floating Gas to Liquids (GTL), Floating Power Generation and Floating Liquefaction (LNG) and is is a licensed engineering firm with EPC capabilities.

Conrad Industries Inc. specializes in the construction, conversion and repair of a wide variety of marine vessels for commercial and governmental customers and the fabrication of modular components of offshore drilling rigs and floating, production, storage and offloading vessels.It has been awarded a contract to build a 2,200 cu.m. LNG bunkering barge — the first in the U.S.

The Shearer Group, Inc., founded in 2010, provides naval architecture, marine engineering, marine surveying and professional engineer services to clients in the inland and offshore marine industries.