Displaying items by tag: Shipping

Bangladesh: A cargo vessel carrying 1035t of clinker has sunk on the Rupsha River. Local police said that water started to enter the ship, MV-BB 134, whilst in the middle of the river when a crack opened in its hull, according to the United News of Bangladesh news agency. The vessel sank within an hour. No casualties have been reported.

Somalia: Security contractors aboard the cement carrier NACC Valbella have repelled an attack by pirates off the coast of Somalia. According to the maritime security firm LSS-SAPU and the Maritime Executive, the ship was transiting 90nm south of Mukallah, Yemen when it was approached by a pirate mother ship. After lighting warnings flares the carrier exchanged gunfire with the pirates before they abandoned their attack and departed. The Valbella did not suffer material damage and no injuries were reported.

Netherlands: The Damen shipyard at Oranjewerf in Amsterdam has upgraded the cement carrying capacity of the Lelie C owned by Cebo Marine. Eight new cement silos, with a capacity of 40m³ each, have been installed on the vessel alongside general maintenance.

The silos were previously fitted on the VOS Symphony prior to it going for scrap. Damen Shiprepair Oranjewerf removed the tanks, refurbished them and then installed them on board the Lelie C. The shipyard also built a silo foundation and fitted it in the vessel’s hold. 80m of stiffeners were welded into place in the double bottom tanks to provide the necessary support. Alongside this, approximately 100m² of grating walkway was fabricated and fitted on the deck to give access to the manifolds on each of the new silos. The supply and discharge and air pipe system for the two existing silos was also refurbished to accommodate the new capacity.

“Two years ago we installed the original tanks from the Ritske, a vessel belonging to the same client, and now we have repeated the process again, this time on a much larger scale. The Lelie C began her life as a general cargo vessel, but now her transformation into a cement carrier is complete,” said Jeen van der Werf, Commercial Manager at Damen Shiprepair Oranjewerf.

Zuari Cement's ground breaking of a new port-side packing terminal in Kochi, Kerala is the latest Indian cement news story with an eye on the sea. The Italcementi subsidiary's terminal won't be open until 2015 but the move shows that Indian producers are starting to tackle industry over-capacity through shipping lanes.

The Italcementi subsidiary holds two integrated cement plants and a grinding plant in Andhra Padesh and Tamil Nadu, two of India's biggest cement-producing states. In 2013 Italcementi reported that cement consumption fell for the first time in 10 years. Although Italcementi's cement and clinker sales rose by 1.6% in India in 2013, its revenue fell by 14% to Euro214m. Profit indicators like earnings before interest, taxes, depreciation, and amortisation (EBITDA) also fell. Targeting Kerala, one of the country's smallest cement producing states (0.6Mt/yr in 2013), makes sense.

Zuari Cement isn't the only Indian cement producer with its eye on shipping or on Kerala. At the end of March 2014, Gujarat producer Sanghi Industries announced plans to invest US$25m in ships and sea terminals. It plans to acquire six vessels in the next five years. It is also in the process of setting up terminals at Navlakhi port in Gujarat and at Mumbai port in Maharashtra.

Sanghi has stated that its aims are to find new markets, reduce fuel costs and increase its distribution networks. In an interview with Alok Sanghi, the director of Sanghi Cement, for a forthcoming issue of Global Cement Magazine, Sanghi revealed that Kerala is one of the four markets the producer focuses on within India (alongside Gujarat, Rajasthan and Maharashtra).

Neighbouring Pakistan is no stranger to exporting its cement around the world. Frequent complaints from east and south African press and cement producers attest to this. However, this week's story about plans to build the country's first 'dirty cargo' terminal at Port Qasim, Karachi marks a change from the normal narrative.

According to a Pakistan cement producer who Global Cement interviewed earlier in 2014, coal is the most common fuel used to fire cement kilns following a shift from gas in recent years. Subsequently coal prices rose, leading to higher cement prices in the country. A new terminal with the capacity to handle 12Mt/yr of coal (growing to 20Mt/yr in a second phase of the build) could certainly help cut input prices for the industry.

The producer also mentioned that most of the coal that Pakistan currently uses is imported from Indonesia and South Africa. So, indirectly, the South African coal industry appears to be making money helping to make Pakistan cement that eventually arrives back in South Africa to undercut local cement producers! They say that market always finds a way. Ships certainly help.