Connect with us

Maritime

Billionaire Ross Raises $100 Million to Expand Shipping Bet

Published

on

LONDON – Wilbur Ross, the billionaire investor in struggling industries, raised $100 million to buy ships hauling coal, iron ore and grains, betting that accelerating growth in emerging markets will boost trade.

WL Ross & Co. and its partners ordered four Ultramax vessels with options for four more, Ross said by phone today. He declined to name the other investors in the venture, Nautical Bulk Holdings Ltd. The ships will be delivered in 2015 by China’s Jiangsu Hantong Ship Heavy Industry Co.

The 65,000 deadweight-ton ships will have fuel-efficient designs and be equipped with their own cranes, allowing them to collect and unload cargoes in less-developed ports, Ross said. The company may buy more ships, he said. Ross’s company also has stakes in tankers that haul refined fuels and liquefied petroleum gas. Private equity firms invested $4.32 billion in shipping so far this year, the most since at least 2008, according to Marine Money, an industry researcher and publisher.

Wilbur Ross“Since we think a lot of the demand for dry commodities is going to develop in the emerging markets, we think they’re well-suited to that,” Ross said by phone. Shipping rates will recover by the time the new ships are built, he said.

The Baltic Dry Index, a measure of costs to ship iron ore, coal and grains, more than doubled to 1,581 this year, rebounding from the lowest annual average since at least 1993, according to the Baltic Exchange, the London-based publisher of freight rates. World trade in dry-bulk commodities will expand 5 percent to a record 4.5 billion metric tons next year, estimates Clarkson Plc, the world’s largest shipbroker.

New Vessels

Rates slumped since 2008 as owners ordered too many ships before the global recession. Outstanding contracts for new bulk carriers equal 18 percent of the existing fleet, down from as much as 74 percent in 2009, according to data from IHS Maritime, a Coulsdon, England-based research company.

The cost of a new China-built Supramax, a dry-bulk vessel typically fitted with cranes and in the same size range as the ones Ross ordered, rose 5.7 percent to $28 million this year, according to Simpson, Spence & Young Ltd., the world’s second-largest shipbroker. That’s heading for the first annual gain since 2010 and the biggest since 2007.

Ship owners spent $13.1 billion on new bulk carriers as of September, compared with $9.6 billion in all of 2012, Clarkson data show. Investment in Handymaxes, also in the same size range as Ross’s Ultramaxes, more than doubled to $4.4 billion, according to the shipbroker’s figures.

Shares Gaining

The 12-member Bloomberg Dry Ships Index rallied 22 percent this year, compared with a 16 percent advance in the MSCI All-Country World Index of equities. The shipping index is still 83 percent below its 2007 record.

Ross was part of a group of investors who spent $900 million on 30 oil-product tankers in 2011. His company also has a majority stake in Navigator Holdings Ltd., which controls one-third of the world’s midsize LPG carriers.

Economic growth in developing countries will accelerate to 5.1 percent in 2014 from 4.5 percent this year, compared with 3.6 percent globally, the International Monetary Fund estimates. Imports will expand 5.9 percent and exports will grow 5.8 percent, compared with 4.0 percent and 4.7 percent in advanced economies, according to the Washington-based lender.

World trade in iron ore, the biggest commodity transported by sea after crude oil, will rise 7 percent to 1.27 billion tons in 2014, with China accounting for 88 percent of the increase, Clarkson estimates. Shipments of coal used for power generation, the next-largest cargo, will advance 4 percent to 897 million tons, with Chinese and Indian demand amounting to 62 percent of the gain, data show.

– BLOOMBERG

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maritime

IMO Category C Election: Oyetola Inaugurates Inter-Ministerial Committee

Published

on

 

The Minister of Marine and Blue Economy, Adegboyega Oyetola, has called for a comprehensive action in Nigeria’s bid to be elected into Category C of the International Maritime Organisation (IMO) Council, as he inaugurated an Inter-Ministerial Committee to promote the campaign.

Speaking at the inauguration held at the Boardroom of the Federal Ministry of Marine and Blue Economy (FMMBE) in Abuja on Tuesday, Oyetola said the campaign must be all-inclusive, taking into consideration diplomatic and operational strategies in soliciting votes to yield good dividends.

He explained that, having lost out three times between 2011 and 2019 after its successful stints in 1975, 2001, and 2005, Nigeria is due to return to the Council to cement its relevance as a strategic Maritime domain and a strong voice in West Africa.

On his part, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), said, “The need for Nigeria’s return to Council is imperative given our strategic location and significance as a hub of Maritime activities and as a voice for the sub-region on the IMO Council, where crucial decisions regarding international maritime shipping and trade are made.”

ALSO READ: Tinubu Endorses Six IMO Instruments Of Accession

He added that membership in the Council comes with such benefits as “technical assistance, manpower and institutional development, as well as political influence in the maritime sector of the global economy.”

The inter-ministerial committee for Nigeria’s election to the IMO Executive Council at the 34th Regular Session in 2025 comprises high-level officials led by the Permanent Secretary of the FMMBE, Olufemi Oloruntola.

The committee is tasked with identifying activities and actions that will promote Nigeria’s standing in the IMO community by articulating and showcasing the country’s maritime achievements.

Members of the committee include the Director of Maritime Security and Safety from the FMMBE and the Director-General of the NIMASA, who will serve as alternate chairpersons.

Other members are; the Directors of Legal Services and Maritime Services from the FMMBE, the Director of International Organisations Division at the Ministry of Foreign Affairs, the Managing Director of the Nigerian Ports Authority (NPA), the Executive Secretary of the Nigerian Shippers Council (NSC), the Managing Director of the Nigerian Inland Waterways Authority, and the Rector of the Maritime Academy of Nigeria (MAN), Oron.

Others include the former Director-General of NIMASA, Dr. Ade Dosunmu (stakeholder); the representative of the Office of the Honourable Minister of the FMMBE, Dr. Charles Akinola; and the Assistant Director, Maritime Pollution Control at the FMMBE, Mr. Paschal Ogah, who will serve as Secretary to the Committee.

Meanwhile, the Direvtor-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, has officially presented the six IMO instruments assented to by the President of the Federal Republic of Nigeria, Bola Tinubu, GCFR, to the Minister of Marine and Blue Economy.

He thanked the Minister for facilitating the signing of the IMO Conventions, noting that, ‘these six conventions have been pending within the Ministry and government for the last 6 to 8 years. With the efforts of the Honourable Minister, they have now been assented to by Mr. President and will be delivered and showcased with the IMO.’

Continue Reading

Maritime

Tinubu Endorses Six IMO Instruments Of Accession

Published

on

 

Nigeria’s President, Bola Ahmed Tinubu has signed the instruments of accession for six Conventions of the International Maritime Organization (IMO).

This action paves the way for Nigeria to officially deposit these instruments of accession at the IMO headquarters, which serves as the repository for such conventions. This move is expected to enhance Nigeria’s maritime governance and align its practices with international standards, promoting maritime safety, security, and environmental protection.

It was gathered that the six instruments signed by President Tinubu are the Instrument of Accession of the Protocol of 2005 to the 1988 Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms on the Continental Shelf, the Instrument of Accession of the International Convention of Standards of Training, Certification, and Watch-keeping for Fishing Vessel Personnel 1995; and the Instrument of Accession of the Protocol Relating to Intervention on the High Seas in cases of Pollution by Substances other than Oil, 1973 as Amended (INTERVENTION PROTOCOL).

ALSO READ: MAN Counts On Govt’s Support For Dangote Refinery To Boost More Downstream Investments

Others are the Instrument of Accession to the Protocol of 1996 to Amend the Convention on Limitation of Liability for Maritime Claims (LLMC) 1976; the Instrument of Accession to the Protocol to the 1974 Athens Convention Relating to the Carriage of Passengers and Their Luggage by Sea, 2002; and the Instrument of Accession to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009.

Presenting the instruments to the Hon Minister of Marine and Blue Economy, Dr. Dayo Mobereola, the Director-General of NIMASA, expressed his gratitude to the Minister for facilitating the signing of the IMO conventions by the President after several years of being pending in the Ministry.

In his words, “These six instruments have been lying within the Ministry for the last 6 to 8 years, and thanks to the efforts of the Honorable Minister, they have now been assented to by the President. This is a landmark achievement for Nigeria, as the IMO will soon update our records to recognize these instruments.

On his part, the Honorable Minister reassured stakeholders of the President’s commitment to developing the Nigerian maritime industry in line with global best practices.

By signing these instruments of accession, the President has reaffirmed this administration’s determination to take its rightful position among the comity of maritime nations. This development will undoubtedly further reassure member states and stakeholders of Nigeria’s resolve and determination to be a leading member of the decision-making body of the IMO.

The deposit of these six instruments of ratification will be carried out by the supervising Ministry, and NIMASA.

Continue Reading

Maritime

Helicopter Crash: NIMASA Volunteers Information With IMO

Published

on

 

Following the recovery of the Flight Data Recorder FDR and Cockpit Voice Recorder CVR otherwise called the black box, of the Helicopter that crashed into the Atlantic Ocean near Bonny Finima, Port Harcourt, the Nigerian Maritime Administration and Safety Agency (NIMASA) will share details of her findings therefrom with the International Maritime Organization (IMO).

Biztellers reports that the black box was recovered last weekend through an inter-Agency collaboration involving NIMASA, the Nigerian Navy (NN), the Nigerian Safety Investigation Bureau (NSIB), the NNPC Ltd, HydroDive in addition to other local and international search and rescue partners.

On the incident, the Director General of NIMASA, Dr Dayo Mobereola, commended all organs of government for the swift, and well-coordinated inter-agency partnership for the search and recovery operations.

ALSO READ: NNPC Ltd, SPDC Comfort Borno Flood Victims With US$1m

He revealed that NIMASA will share information on the incident with the IMO.

In his words, “In line with international maritime safety standards, NIMASA will report the findings about the helicopter crash into the Atlantic Ocean to the International Maritime Organization IMO via the Global Integrated Shipping Information System GISIS.

“By sharing the findings of the offshore Port Harcourt helicopter crash with the IMO, we at NIMASA demonstrate Nigeria’s commitment to transparency, accountability, and cooperation within the global maritime community”.

The GISIS is an online platform developed by the IMO to support the timely and accurate reporting of incidents, accidents, and other essential maritime data. This platform enables member states to share information crucial to improving safety protocols, updating best practices, and fostering international cooperation.

According to Mobereola, “NIMASA is committed to working closely with all relevant Agencies to determine the cause of the incident and to take all necessary steps to prevent future occurrences. As we mourn those lost, NIMASA reaffirms its dedication to the safety of Nigeria’s maritime domain and the continued strengthening of inter-agency collaboration.

On October 24th 2024, the Agency had received distress signals at the Regional Maritime Rescue Coordination Center (MRCC) and the C4i center of the Deep Blue project and shared same with the Nigerian Navy who immediately deployed the NIMASA’s specialized search and rescue assets to the crash site to locate the downed aircraft and conduct recovery efforts under challenging conditions.

The helicopter crashed in the Atlantic Ocean near Bonny Finima, at a distance of 1.4km from the starboard side of the Floating Producing Storage Offloading FPSO, NUIM ANTAN Producing Ltd owned by the Nigerian National Petroleum Corporation (NNPC Limited).

The NIMASA working closely with the NN, the NSIB, the NNPC Ltd, HydroDive and other local and international search and rescue partners recovered the Flight Data Recorder (FDR) and Cockpit Voice Recorder (CVR) from the Sikorsky SK76 helicopter, registration 5N BQG.

It was gathered that with the recovery of the black box, over 80 percent of the helicopter wreck had been recovered. Other items recovered include rotor, three blades, engine, gearbox, windows, cockpit overhead panels, the Electronic Locator, Transmitter (ELT) and the tail. All the recovered wreck is on a dump barge.

Meanwhile, the DG NIMASA has extended the Agency’s heartfelt condolences to the Nigerian National Petroleum Corporation NNPC Limited, the families of the victims, and all those affected by the tragic helicopter crash.

He stated, “Our deepest sympathies are with the NNPC, the families, and loved ones of those affected by this unfortunate incident. Safety is a paramount commitment for us at NIMASA, and we remain resolute in our partnership with the Nigerian Navy and other stakeholders to ensure effective, rapid response in emergencies.”

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.