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DAILY SHIPPING NEWSLETTER 2005 – 001

PSi-Daily Shipping News 01/03/05

Number 001***DAILY SHIPPING NEWSLETTER***Monday 03-01-2005

THIS NEWSLETTER IS BROUGHT TO YOU BY :

VLIERODAM WIRE ROPES Ltd. wire ropes, chains, hooks, shackles, webbing slings,

lifting beams, crane blocks, turnbuckles etc.Binnenbaan 36 3161VB RHOON The Netherlands

Telephone: (+31)105018000 (+31) 105015440 (a.o.h.)Fax : (+31)105013843

Internet & E-mail www.vlierodam.nl [email protected]

Thesuperstructureof the trailer

suction dredgerORANJE

Photo :Jan Steehouwer

©



THE ELBE GALLERYThe company logos are temporarily removed from the newsletter due to slow internet connection at

the location where the newsletter is made at present.The logos will be re-instated within a few weeks again

Sorry for the inconvenience

Save the ELBEGiro rekening No 8145443

Att : Piet Sinke - Stationsweg 21 - 3151 HR Hoek van Holland

The score until today : 42.100 Euro

EVENTS, INCIDENTS & OPERATIONSSamudera bulker capsize leaves 15

missing off AcehFIFTEEN crew of a Samudera Shipping Line cement carrier were missing after it capsized off Aceh,Indonesia, in the disaster that swept the Bay of Bengal.

Singapore-listed Samudera said the 6,693 dwt cement carrier Sinar Andalas capsized and wasstranded by the tsunami that hit the port of Lhok Nga on Sunday.

Of the 19 crew, just four were rescued after the ship was hit by killer waves while performing cargooperations in the Indonesian port.

Samudera said it was still in the process of locating 15 other crew members missing in the tragedy andhas sent an emergency team to the site. “We are thankful the four are rescued and are deeplyconcerned about the others,” the company said.

But chances of their survival would appear slim with the port located in an area that bore the full bruntof the worst earthquake in 40 years.

The port of Lhok Nga is about 17 km west of Banda Aceh, the capital of Aceh province, scene ofmassive destruction in the tsunami that followed the quake.

Reporters at the scene in Banda Aceh described thousands of dead bodies lying the streets of thestricken capital. Indonesian officials now say the death toll in the country is 80,000 as entire towns andvillages on the coast of Aceh were laid waste in matter of minutes.

Rescue workers were still having problems reaching the more remote areas on the coast.

It is the worst reported casualty to the shipping industry in the disaster.

The shipping industry has escaped largely unscathed as vessels in deep water were largely unaffectedby the tsunamis. Those in port, however, bore the full front of killer waves much as those on land did.



The Sinar Andalas was part of Samudera’s industrial shipping fleet and its only cement carrier. Thenet book value of the vessel was $9.73m and it was on charter at a daily rate of $6,550 until March 42008, and $6,850 daily until March 4, 2010. The ship contributed 0.69% of Samudera’s revenues andthe company said it was covered by hull and machinery and P&I insurance.

Lhok Nga port is owned by cement producer PT Semen Andalas Indonesia. The company sendscement by ship to Belawan, Lhokseumawe and Batam Island for packing.

There has been no further news of the other shipping casualty reported in Aceh following the deadlytsunami. At the port of Kreung on the Indian Ocean facing the coast of Aceh, Indonesia, two crewmembers were reported killed and three are missing from the 1,862-dwt product tanker Tirta Karsa.

- The Indian government took hasty remedial measures to prevent panic from developing yesterdayafter a meteorological office in the southern state of Tamil Nadu issued a warning that another tsunamiof even greater magnitude than last Sunday’s killer wave was on the way.

News of these happenings reached the Sri Lankan capital of Colombo, and a news agency issued areport that public announcements had been made, warning people not to go within 2 km of the sea,and to stay on high ground.

Sri Lanka Ports Authority officials, requesting anonymity, rejected the report, saying that they hadreceived confirmation from the Hawaii Tsunami Tracking Centre that the likelihood of another majortidal wave was remote.

Loading and unloading operations at the two main container terminals in Colombo port continuedwithout disruption, although it is understood that the Sri Lankan Navy moved some berthed vessels outof the harbour into the open sea as a precautionary measure.

- All ships leaving Saudi ports on the Far East trade have dropped Colombo from their schedule in thewake of the tsunamis, according to local reports.

Feeder lines serving Indonesia, India and Thailand are also adversely affected.Delays in the arrival ofcargo ex-Saudi are predicted by at least one carrier.

Concerns over tug and crewFears are growing for the safety of the ship and crew of a tug andbarge that vanished nearly two weeks ago without trace whilesailing from the Philippines to Indonesia.

the tug Christian and barge Flora are presumed to have beenattacked by pirates. Their last known position was 05° 34'N, 119°22'E, reported 14 December.

“This most recent attack is part of a disturbing trend,” warned theInternational Maritime Bureau’s (IMB) Piracy Reporting Centre.

“In 2004 alone there have been 23 attacks aimed at hijacking tugsand barges in South East Asia,” said IMB Director CaptainPottengal Mukundan.

“In many of these cases, the crew have been abducted orabandoned after hijackers have taken control of the vessels,” he said.



“Because they travel at slow speeds, tugs and barges are easy targets for pirates,” added CaptainMukundan.

He said: “Armed criminal gangs often approach in multiple speedboats and easily board and take overthe slower ships.”

“Apart from stealing the property on board, the pirates have also resorted to kidnapping the crew anddemanding a ransom for their release.”

A recent incident in the Malacca Strait highlights the dangers the Christian and Flora may be facing.

On 15 December, 20 pirates armed with machine guns, operating from two fishing boats, fired uponthe tug Ena Sovereign.

The attackers boarded the vessel, kidnapped the master and chief engineer, and took all the ship’sdocuments, property and crew belongings before escaping.

The Ena Sovereign was towing a barge at the northern end of the Malacca Strait midway betweenthe coasts of Indonesia’s troubled Aceh province and Malaysia.

Research conducted by the IMB indicates cause for concern, as there is a continued pattern ofhijacking, theft and abductions in this region.

CASUALTY REPORTAPPA Tanker outer pier will be interdicted from Dec 30 to Jan 3 on account of removal operations tochemical/oil carrier Vicuna. The salvage company SMIT is working hard to remove the vessel from theberth. They will cut the vessels superstructure into parts. Barge Taklift 6, engaged in the removaloperations, will be positioned to remove the forward part of the vessel. As the barge will stay anchorednear to APPA Tanker outer pier, for safety reasons, the Harbour Master has decided to interdict theouter pier while the removal operation is effected. In the meantime, all vessels will have to call at theinner pier only, restricted to the draught limit of 33 feet

NAVY NEWSMore ghosts sent for scrap

The US MaritimeAdministration (Marad)has awarded disposalcontracts for two moreships from the JamesRiver Reserve Fleet, theso-called “ghost ships”.

Virginia-based BayBridge Enterprises hasbeen awarded thecontract to dispose ofthe Shirley Lykes for$860,000. Marad

officials said the second ship, the Neosho, will go to Texas-based International Shipbreaking Ltd.



“The contract is for $1 since higher steel prices and better ship conditions make it less costly to scrap,”Marad said.

The sale of the two ships comes on the back of the disposal of the “ten worst ships in the aging fleet”that the US administration committed itself to removing.

“Not only do we have disposal contracts on all ten of those ships, but we are now disposing of twofurther ships,” said deputy maritime administrator John Jamian.

Marad administers the National Defense Reserve Fleet, which holds ships designated as being “usefulfor defense”. There are 110 "ghost ships" located in the three fleet sites of the National DefenseReserve Fleet; about 60 of them are in the James River Reserve Fleet.

Since 2001, Marad has awarded contracts for the disposal of a total of 43 ships in the James RiverFleet based in Virginia.

Indian Navy’s biggest peacetimeoperation

With 32 ships, 21 helicopters, eight Dornier aircraft operating round the clock, the Navy hasundertaken its biggest peacetime operation ever.

“Operation Madat” by the Unified Command is in full swing in Nicobar islands. Armed forces alsomade the 3,000-metre air-strip at Campbell Bay operational for Air Force aircraft. In the past week,5,500 Navy personnel were working in tsunami-affected areas, a defence ministry official said. Thisapart, hundreds of personnel from Naval bases have been associated with operations in AndhraPradesh, Tamil Nadu, Pondicherry, Kerala, Andaman and Nicobar islands, as well as Sri Lanka, Maldivesand Indonesia.

The Centre today launched “Operation Ghambir” to help relief and rescue efforts in Indonesia. Thisis the third overseas relief effort after “Operation Rainbow” in Sri Lanka and “Operation Castor” in the

Maldives.

Three survey ships, fitted with hospital beds, ICU andmedical facilities, have been sent. While INS Nirupakand INS Jamuna will provide succour in Indonesia andSri Lanka, INS Nirdeshak (Photo left) would bedeployed in the Andamans. More ships, aircraft andpersonnel are on standby. The Navy has sent 25 medicalteams to the Andamans, and 20 to neighbouring countries

U.S. Plans to Retire Navy Carrier,Buy Fewer Ships

The United States plans to decommission one of its aircraft carriers more than a decade early and buyfewer amphibious landing ships for Marines and sophisticated new Navy destroyers, officials saidThursday.



The proposals are part of an effort to slice $10 billion from the Pentagon budget for the 2006 fiscalyear, which begins Oct. 1, said U.S. officials, who asked not to be named. The Pentagon is aiming for$60 billion in cuts over six years, said defense analyst Loren Thompson, citing Pentagon insiders.

The Navy plans to decommission the USS John F. Kennedy, among the oldest of its 12 aircraftcarriers and one of only two that are nonnuclear-powered, officials said. The other, the USS KittyHawk, has its home port in Japan.

The CVA 67 JOHN F.KENNEDY passing the peace bridge over the Suez canal March 4th, 2002Photo : Coll Piet Sinke ©

The John F. Kennedy previously had been scheduled to leave naval service in 2018 and had beendue to undergo a $250 million refurbishing this year. With its home port in Mayport, Florida, it justwound up a deployment in the Gulf, where its aircraft flew missions over Iraq and supportedoperations in Afghanistan.

Under the proposal, the Pentagon would acquire fewer new DD(X) destroyers for the Navy thanplanned in the coming six years, officials said. Northrop Grumman Corp. is the prime contractor for thedestroyer, the lead ship in a new class and costing about $1.2 billion to $1.4 billion each.

Also affected would be LPD-17 San Antonio-class amphibious Landing Platform Dock ships, built byNorthrop Grumman at a cost of about $1.2 billion each, officials said. The Navy had intended to buyfive of the ships, which carry Marine amphibious landing craft, fighting vehicles and aircraft.

Defense officials had already disclosed plans for deep cuts in Lockheed Martin Corp.'s F/A-22 Raptor,designed to be the world's top fighter jet.

The Army also is considering delaying by as much as five years a key element of its modernizationplans, the Future Combat System being developed by Boeing Co., Thompson said, in another cost-cutting move.



Officials said details of the proposed spending cuts, first reported by the New York Times, were stillbeing worked out before being sent by the Bush administration to Congress.

Defense Secretary Donald Rumsfeld telephoned Senate Armed Services Committee Chairman JohnWarner, a Virginia Republican, earlier this week to outline planned 2006 budget cuts without going intospecific programs, said John Ullyot, a spokesman for Warner.

"It is clear that (the Pentagon) will play a part in overall budget reductions," Ullyot said.

The $60 billion in cuts over six years were demanded by the White House budget office and Rumsfeldhas sent the services back to pare their budget requests accordingly, said Thompson, of the LexingtonInstitute think tank.

But despite the proposed cuts in several big-ticket items, overall spending on U.S. defense in 2006 isexpected to increase from the current record level of more than $400 billion.

Thompson said Rumsfeld rejected an Air Force proposal to keep more F/A-22s by slashing instead itsplanned purchases of Lockheed's F-35 Joint Strike Fighter from about 1,800 to 1,200.

"F-35 cuts may not be materializing," Thompson said.

Thompson added that Rumsfeld had been eager to avoid per unit cost increases for the Joint StrikeFighter, a program with eight major international partners that will also supply aircraft to the Navy andMarine Corps.

Former Pentagon comptroller Dov Zakheim, who ran the department's finances until this April, saidcuts in the 2006 budget on the order of $10 billion, most of it from the acquisition budget, would be nosurprise given the high-than- anticipated Iraq war costs and pressures to reduce the federal budgetdeficit.

Combined Iraq and Afghanistan operations were now running perhaps $6 billion a month, up $1 billiona month from a year ago, he said.

"That's clearly what's underlying this and it shouldn't come as a surprise to anyone," said Zakheim, avice president at Booz Allen Hamilton Inc., a global strategy and technology consultancy.

SHIPYARD NEWSUpdated - CSD orders bring Guangzhou and

Dalian yards a New Year bonusCHINA Shipping Development, China’s second largest shipping company, has confirmed it has placedorders for five tankers, including a very large crude carrier (VLCC), totalling $242m.

The deals were confirmed with two Chinese shipyards on December 30 after China Shipping’s directorsagreed to the purchase at a board meeting in Shanghai on December 22.

The biggest package, valued at US$143.2m, has been awarded to Hong Kong-listed GuangzhouShipyard International for four handymax 52,500 dwt tankers that will be delivered in Guangzhou



Shipyard International company secretary Li Zhidong said the ships will be the biggest ships so far builtby the yard, in which China State Shipbuilding Corporation has a 42% stake.

In a 19-line statement, Mr Li said the company believed the order "would be beneficial to the businessdevelopment of the company". China Shipping Development company secretary Yao Qiaohong said thecompany would make five payments to the Guangzhou shipbuilder to cover the cost of the vessels.

The first instalment, worth 10% of the purchase price and equivalent to US$14.32m, is due to be madeby January 14. Three further payments of US$14.32m would be made followed by a final instalmentequal to 60% of the purchase price. Mr Yao said the first ship is to be delivered by June 2007, followedby the second by September 2007, the third by December 2007 and the fourth by April 2008.

Guangzhou Shipyard’s Mr Li added that China Shipbuilding Trading Corporation (International) wouldreceive US$720,000 in shipbroking commission fees. China Shipping Development, which is listed inShanghai and Hong Kong, also confirmed an order worth US$98.8m with Dalian Heavy Industry for a298,000 dwt VLCC.

The firm’s said China Shipping Development will make five equal instalments, the first due by January14, to Dalian Heavy Industry for payment of the tanker, which is due for delivery by November 2007.

ROUTE, PORTS & SERVICESTHIS SECTION IS BROUGHT TO YOU BY :

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Telephone : (31) 10 - 453 03 77 Fax : (31) 10 - 453 05 24 E-mail : [email protected] Telex : 24390 wosh nl

Stolt Offshore signs LOI for $120mfield development

STOLT Offshore has announced the signing of a letter of intent for flowline installation andconstruction work on an offshore field development in its Northern Europe and Canada Region valuedat approximately $120m. This central North Sea project will make significant use of Stolt Offshore'smajor construction assets with offshore installation starting in 2006.



Sonsub’s POLAR PRINCE alongside the HERMOD – Photo : Piet Sinke ©

Waterman flags in P&O Nedloydboxships

US-flag liner company Waterman Steamship Corp has reflagged the geared containerships P&ONedloyd Vera Cruz and P&O Nedloyd Buenos Aires (both built 1984) from the Netherlands to theUS for employment in the US Maritime Security Program.

The 1779-teu vessels have been acquired from P&O Nedloyd and long-term chartered to Farrell Lines,the US-flag subsidiary of P&O Nedloyd. Waterman is a subsidiary of New Orleans based dry operatorInternational Shipholding Corp, which trades under symbol ISH on the New York Stock Exchange.TradeWinds reported earlier this month that ISH’s Central Gulf Lines subsidiary would increase its slotsin MSP from seven to eight under information seeping out to ship operators from US authorities.

It also was reported that P&O Nedloyd is to keep its current five slots in MSP. Waterman officials couldnot immediately be reached for clarification of the transaction.

Sovcomflot eyes icebreaker orderRussian owner Sovcomflot is set to enter the icebreaking business.

Company president Sergej Frank tells TradeWinds that Sovcomflot is working with Russian governmentagency Rosmorport on a project for constructing icebreakers for use in the Baltic Sea.



Frank says the partners are clarifying the specifications for the ships. He declines to comment on howmuch they are costing. He does, however, say the vessels will most likely be constructed in Russia andthat there would be a tender process.

Sovcomflot will likely order one or two icebreakers and delivery will be scheduled for the end of 2007or the beginning of 2008. Rosmorport is likely to take the ships on bareboat charters from Sovcomflot.

Frank describes the move as logical, given Sovcomflot's expertise in the region. He does not see it inconnection with the company's tanker operation in the Baltic. "This is a separate project," Frank said.

MOVEMENTSTHIS SECTION IS BROUGHT TO YOU BY :

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The container feeder CORVETTE seen here arriving in the EuroportPhoto : Peet de Rouw ©



The HUAL AFRICA seen here arriving in AmsterdamPhoto : Joop Marechal ©

AIRPORT / AIRCRAFT NEWSDutchbird in surseance

De rechtbank in Amsterdam heeft vrijdag surseance verleend aan luchtvaartmaatschappij Dutchbird.Dat heeft een woordvoerder van het bedrijf laten weten. Mr. F. Kemp van Fort Advocaten is benoemdtot bewindvoerder. Dutchbird liet eerder weten uitstel van betaling aan te vragen, omdat gesprekkenmet een potentiële financier waren mislukt.

File photo of a DUTCHBIRD Boeing 757-200 taking off from Schiphol - Amsterdam airportPhoto : Piet Sinke ©



Volgens de woordvoerder van Dutchbird wordt er nog steeds gezocht naar een oplossing voor hetpersoneel. Eerder werd bekend dat H. Prins, juridisch eigenaar van Dutchbird, zijn personeel onderprobeerde te brengen bij Exel Avation Group (EAG) in ruil voor toezeggingen van vluchten doortouroperators.

Prins is de ex-directeur van EAG, die wordt verdacht van afpersing, witwaspraktijken en valsheid ingeschrifte.

Dutchbird voert nog steeds gesprekken met EAG over de eventuele overname van zijn activiteiten enpersoneel. Het uitstel van betaling hoeft deze gesprekken niet in de weg te staan. "Wij hebbennatuurlijk nog steeds interesse", zo liet een woordvoerder van EAG vrijdag weten. " Boeing en detouroperators zijn de cruciale spelers in deze gesprekken" . Volgens hem worden de gesprekkenvolgende week voortgezet.

Eerdere gesprekken met een geïnteresseerde financier mislukten, omdat deze bereid was geldbeschikbaar te stellen als er op korte termijn weer vliegtuigen de lucht in konden. Dat ging niet dooromdat Boeing, de eigenaar van de toestellen, pas in de eerste week van januari weer wilde verderpraten over de contracten. Dat was voor Dutchbird te laat. Boeing beweerde dat deleaseovereenkomsten voor de toestellen zijn beëindigd, maar Dutchbird meende van niet.

Dutchbird heeft drie toestellen waarmee de maatschappij vluchten uitvoert naar onder meer Egypte.Die staan sinds een paar weken aan de grond. Eigenaar Boeing heeft ze aan de ketting gelegd.

PHOTO OF THE DAY

The POLAR PRINCE – Photo : Piet Sinke ©



SMITWIJS TOWAGE B.V.Westplein 5b

3016 BM RotterdamThe Netherlands

Telephone: +31 10 412 6969Telefax:+31 10 436 9587

E-mail: [email protected]

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