Displaying items by tag: Shipping

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.

India: Sanghi Industries Ltd (SIL) will invest US$41.8m in the next 18 months to increase its cement production capacity by 30%, to acquire ships and construct sea terminals.

Of the US$41.8m, SIL will use US$25.1m to acquire new ships and to construct new sea terminals and the remaining US$16.7m will be used to raise cement production capacity from 2.6Mt/yr to 3.5Mt/yr by the end of 2015.

"Currently, clinker production is higher than cement production at our plant. To correct the mismatch, we are investing US$16.7m to increase the grinding capacity. This will take 14 months before commissioning," said Alok Sanghi, SIL director. The debottlenecking will increase the grinding capacity by 30% of the Abdasa plant in Kutch.

SIL will acquire six vessels in the next five years for the transportation of its products into newer markets to reduce fuel costs and increase distribution capabilities. "We currently charter ships from market for distribution. We will acquire two vessels immediately and then two vessels every 18 months," added Sanghi.

SIL is also in the process of setting up terminals at Navlakhi port in Gujarat and at Mumbai port in Maharashtra. SIL exports 20% of its total production, mainly clinker to the Middle East, Africa, Sri Lanka and Bangladesh.

SIL has invested over US$334m on the Abdasa plant that began production in 2003."We will have debts of US$75.1m by the end of the current financial year," added Sanghi.

Japan: Cement producers in Japan aim to upgrade their shipping fleets following brisk demand from the reviving construction industry. Three cement producers are expected to spend more than US$95m to acquire new and used vessels in early 2014 according to Nikkei Report. Roughly 70% of cement is moved by sea in Japan.

SumitomoOsaka Cement will spend US$65m, first adding a large ship that can carry 8000t in February 2013 and then purchasing two 2000t ships and one 5500t ship after April 2015. Following the decommissioning of three ships the company will expand its fleet to 20 ships with a combined capacity of 93,000t in 2015 from 19 vessels with a capacity of 82,000t in 2013.

Ube-Mitsubishi Cement plans to start using three new large ships, each with a capacity of roughly 7000 - 12,000t, from February 2014. The company is expected to spend about US$14m on the additions, two of which will be newly built and the other rented.

Taiheiyo Cement will add three large ships for about US$19m in 2014 or later.

Japanese cement producer reduced their shipping fleets following declines in the market in the early 1990s. A reversal of this trend has been attributed to growing construction in large cities, rebuilding after the 2011 earthquake and tsunami and an anticipated rise in demand ahead of the 2020 Tokyo Olympics.

Finland: MacGregor has secured a new order for autonomous loading and unloading systems for an 8700DWT cement carrier to be built for Japanese ship-owner Taiheiyo Kisen Kaisha. The cement handling systems are designed to carry three grades of cement at a rated capacity of 1000t/hr.

"The totally enclosed cement handling arrangements will ensure flexible, efficient and clean cargo operations," says Anders Berencsy, Sales Manager, Selfunloaders at MacGregor.

Cargotec subsidiary MacGregor provides engineering solutions and services for handling marine cargoes and offshore loads.