Displaying items by tag: Shipping

Pakistan: Total cement despatches in Pakistand during the first two months of the current fiscal year clocked up at 4.9Mt, a 14% increase from 4.3Mt recorded in same period of 2015-16. However, according to data released by the All Pakistan Cement Manufacturers Association (APCMA), overall export despatches have decreased: Exports in July-August were down almost 1% on a year-on-year basis to 1.022Mt. Overall domestic sales in August rose 21% to 3.02Mt from 2.5Mt in August 2015. Cement sales in the north zone were 2.495Mt in August, up 22.6% from a year ago. In the south zone sales recorded an increase of 13.2% at 0.532Mt from the same month of 2015.

Exports to Afghanistan dropped 12% to 346,928t in July-August on an annual basis, APCMA data shows. Exports by sea suffered even more. As opposed to 537,120t exported during the first two months of the preceding fiscal year, exports by sea in July-August 2016 were 407,120t, showing 24% decline on an annual basis.

However, increased exports to India made up for these shortfalls to some extent. Exports to India during the first two months of the current fiscal year grew 167% year on year to 268,230t.

A spokesman for the APCMA said the industry has been doubling its production capacity every seven to eight years. The buoyancy in the sector on the back of healthy domestic consumption during the last 20 months has encouraged the industry players to go for further capacity expansion. He said growth in the sector during the first two months of the fiscal year was in spite of Eid holidays. Growth of domestic consumption in August was also 'impressive,' as consistent rains failed to hurt construction activities, he added. He said upcoming projects along the China-Pakistan Economic Corridor (CPEC) will further boost cement consumption.

The industry has yet to realise its export potential due to the lack of support from the government. The loss of the Afghanistan market is a matter of concern for the industry, which has been marginalised there because of subsidised Iranian exports.

Australia: Australian Bauxite has completed its second and largest shipment of cement-grade bauxite, comprising 35,913t, from its Bald Hill mine.

“We have now demonstrated to all our customers that we can load and ship large tonnage cargos of bauxite very efficiently from Bell Bay Port. It also demonstrates that our stockpiles of bauxite performs very well, having withstood the recent major floods in northern Tasmania, without degrading. This is another landmark step for the company,” said Australian Bauxite’s Chief Operating Officer, Leon Hawker.

The mining company intends to sell its bauxite products into three main markets including cement-grade bauxite for the production of high specification cement. It re-opened its Bald Hill Bauxite Project at Campbell Town in northern Tasmania in early August 2016 ahead of the scheduled date.

Canada: McInnis Cement has commissioned NovaAlgoma Cement Carriers to supply it with a 15,000t deadweight cement carrier ship using a cement unloading system delivered by Van Aalst Marine & Offshore. The self-discharging dry bulk cement carrier will be time chartered by McInnis Cement under a long-term agreement. The ship, which was built in 2011, is currently undergoing conversion in China to a cement carrier by its owner NovaAlgoma. The conversion will include the installation of the cement unloading system and a hybrid exhaust gas scrubber system capable of operating in both fresh and salt waters. The ship is scheduled for delivery in early 2017.

“We are pleased to establish this new relationship with NovaAlgoma and Van Aalst that will allow us to take advantage of their cutting edge technology, attention to ecological details and their long-term marine transportation and cargo handling expertise,” said McInnis Cement Vice President Logistics and Distribution, Mark Newhart. The ship will be registered in Canada and use Canadian crew.

“The McInnis project will be a showcase of how the Van Aalst signature vacuum – pressure technology in cement carriers will result into high performance, low emissions and an unsurpassed reliability. The productive and professional partnership approach between McInnis, NovaAlgoma and ourselves has proven to be very successful in achieving and exceeding the requirements of the project,” said Wijnand van Aalst, CEO of Van Aalst Group.

The scrubber system will enable the ship to be fully compliant with the International Maritime Organization (IMO) Marpol Annex VI Sulphur Oxide (SO_x) regulations, regardless of the fuel being used within the North American ECA (emissions control area) which includes Canadian and US coastal waters and the Great Lakes.

The time charter agreement for the ship was brokered by Barry Rogliano Salles, a diversified global shipping services group offering a range of maritime activities. The company’s core business is ship brokering and has been active for over 150 years, operating 20 offices worldwide.

Sri Lanka: Holcim Lanka has inaugurated a transport model for the transportation of its raw materials. In a public-private partnership between Holcim Lanka and the government, the state railway will transport raw materials by rail from the port of Trincomalee to the Mahawa railway station. The company's dedicated trucks will then transport the materials to the Puttalam cement plant. The inauguration took place at the China Bay station in Trincomalee, according to the Daily news newspaper.

“The successful launch of this phase would not have been possible without the support received from the Ministry of Transport," said Holcim Lanka Procurement and Logistics Director Charith Wijendra.

Environmental and efficiency improvements of the new model include using Supramax bulk carriers instead of smaller ships, using dedicated containerised trucks to reduce spillages and cut journeys and a reduction in the use of the railway network.

Australia: Australian Bauxite has completed its first 5560t shipment of cement-grade bauxite from Bell Bay Port in Tasmania. The shipment is the first from Australian Bauxite’s Bald Hill mine, the first new bauxite project in Australia for more than 35 years. The unnamed customer is preparing for a second shipment of 30,000 – 40,000t to be completed by the end of June 2016. The sales mark a change of direction by Australian Bauxite away from alumina refineries towards specialist cements and fertilisers.

Indonesia: Indocement Tunggal Prakarsa has purchased stakes in marine transport services firm Lintas Bahana Abadi through the company's subsidiaries, Bahana Indonor and Indomix Perkasa. The acquisition is expected to support Indocement's business activities, particularly in the marine transport segment, according to Indonesia Finance Daily.

“Bangun Sukses Niagatama Nusantara will divest its shares in Lintas Bahana Abadi to Bahana Indonor and Indomix Perkasa for US$2.1m. The acquisition is fully funded from the two subsidiaries' internal cash,” said Christian Kartawijaya, President Director of Indocement Tunggal Prakarsa. Lintas Bahana will become a subsidiary that is indirectly owned by Indocement.

Netherlands: Shipbuilding company Ferus Smit delivered its first liquefied natural gas (LNG) powered cement tanker MV Greenland to JT Cement on 23 December. Built for the joint venture JT Cement, formed by Swedish shipping company Erik Thun AB and Norway-based KG Jebsen Cement, MV Greenland departed the Delfzijl harbour on its first commercial voyage to Rostock where it will receive its first cement load.

The vessel is the first ever dry cargo vessel with an LNG fuelled propulsion system and LNG tanks integrated inside the hull. The unique design incorporates a pressurised LNG tank positioned in the foreship. While sailing on LNG, the vessel will meet high emission criteria.

The cement cargo system consists of a fully automated cement loading and unloading system, based on fluidisation of cement by means of compressed air. The cement can be loaded and unloaded fully enclosed through pipes, thus dust-free.

Sri Lanka: Tokyo Cement has added a fifth vessel, MV Mohar, to its fleet of cement transport ships in August 2015. The ship is a 22,000t pneumatic bulk cement carrier.

"Logistics is an integral part of our business and the increase in local demand has required us to enhance our capacities not just in transportation, but manufacturing and energy generation. We are always striving to improve our business performance because doing so is Tokyo Cement's contribution to building Sri Lanka and ensuring strong, sustainable development," said Tokyo Cement Group Managing Director S R Gnanam.

With a 1Mt/yr production capacity increase in Trincomalee, the new vessel will transport cement to the Colombo Port in order to distribute more efficiently. "The cement industry is often described as a barometer of a country's march to economic development and prosperity. What we are currently seeing is a surge in demand for products and services, which is a good indicator of market confidence. Over the last three decades, Tokyo Cement has built itself up to become one of Sri Lanka's most valuable brands, with an installed capacity of over 2Mt/yr of cement, over 600 employees and US$149m in assets. Our success reflects the continuing growth of Sri Lanka and its economy," said Gnanam.

India: According to the Times of India, an abandoned cement ship drifted on to the beach of Fansa, a coastal village in Umbergaon, Valsad.

The MV Coastal Pride was reportedly abandoned 15km away from Umbergaon by the ship's 14 crew members on 24 June 2015 after it developed a problem. The overturned ship drifted to Fansa village's beach after a few days because of strong water currents, according to Valsad Marine police.

The ship was en route from Porbandar to Indira Dock in Mumbai. Following a distress call by the ship's captain, the Indian Navy sent its Sea King helicopter for a search and rescue operation from Mumbai and the Indian Coast Guard send a Chetak helicopter from Daman. The 14 crew members aboard the ship were saved. "A marine police team was deputed to Fansa when we received information about the ship. We are trying to get in touch with the ship's owner," said Prem Veer Singh, superintendent of Valsad police.

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.