MAERSK LINE ADD KAKINADA ON TO IT'S COLOMBO CONTAINER FEEDER

Maersk Line is ramping up its feeder operations at Kakinada Port, an emerging alternative cargo gateway on India’s east coast, as part of what the Danish carrier described as "moving closer to shippers and seeking new growth areas."

Maersk said it is adding a feeder link from the minor, or privately operated, Kakinada to Colombo, Sri Lanka, in order to meet growing transshipment demand. The new service will begin with the SSL Vishakhapatnam, voyage 010, arriving at Kakinada on Oct. 29.

The new service comes on the heels of Maersk connecting Kakinada via its Mesawa Service between India and Africa. The Kerstin, the most recent vessel to call Kakinada on the Mesawa service, lifted 800 twenty-foot-equivalent units last month, the highest for any ship on the service to this point in time.

Kakinada Port offers an alternative to the often congested Chennai to the south.

“The landmark effort was acknowledged by port authorities and they expressed confidence that similar handling would happen again at the port in the future,” Maersk said.

Maersk’s latest move adds to a growing trend of mainline container lines frustrated with delays at major public ports shifting operations to private terminals. Krishnapatnam and Kattupalli have been major beneficiaries of such diversions.

Another factor driving ocean carrier interest in new port locations is an expected manufacturing boom from the union government’s ongoing Sagar Mala and other reform measures.

Kakinada Container Terminal is a joint venture between Singapore’s PSA International and two local groups: Kakinada Infrastructure Holdings and Bothra Shipping Services. The Kakinada port complex, which is located between the ports of Visakhapatnam and Chennai, is under the control of Andhra Pradesh State Authority.

Kakinada includes a quay length of nearly 1,000 feet and is capable of handling about 200,000 TEUs per year.



Port statistics compiled by JOC.com show Kakinada handled 164,000 TEUs in fiscal year 2015 to 2016 through March.

AFRICAN SHIPPING LINE TO START INDIAN OCEAN SHIPPING FEEDER SERVICES

MOMBASA, NOVEMBER 28, 2016:  

A new container feeder service by AFRICAN SHIPPING LINE will connect Eastern African Port of Mombasa (Hub) and Mogadishu, Somalia with Further Rotations from Mombasa hub to Tanga, Pemba, Dar Es Salaam, Zanzibar Covering Indian Ocean Ports.

In The Mombasa-Kismayu-Mogadishu (MOKIMOG) and Mombasa-Tanga-Zanzibar-Dar-essalaam service (MOTANZI), AFRICAN SHIPPING LINE will be operating Two Vessels each of 500 and 600 twenty foot equivalent unit capacity vessels with the port rotation.

AFRICAN SHIPPING LINE operated vessels - will be part of the weekly fixed sailing to the said port rotations will be operating at Mombasa Port Hub.

The service is set to commence on May 25th 2017. In the return voyage, the ships carried export boxes to Mombasa and Dar Es Salaam ports. It is expected AFRICAN SHIPPING LINE will act as a fast feeder link of Major Liners (MAERSK, CMA-CGM, EVERGREEN and COSCO) connecting from The Dubai Gulf Corridor, Indian Subcontinent, Far East Asia and China. 

CMA is also offering other Feeder Network in Indian Ocean connecting Nacala to Mutsamudu (Comores). Major commodities included Foodstuff, Textile, Construction materials, Machinery and Spareparts, garments and Other general cargo.

Clients from Eastern African Countries of Kenya, Somalia, Ethiopia, Tanzania, Uganda and Zanzibar Islands will now have connections for importing  automobiles, pharmaceutical & Chemical goods, Foodstuff, Textile, Construction materials, Machinery and Spareparts, garments and Other general cargo.

In the return leg, Agricultural Products like Cashewnuts, Dried Bananas, Hides & Skins, groundnuts, coffee and machinery spares would be carried.

MAERSK LINE BUYING GERMAN CONTAINER LINE, HAMBURG SUD

The shipping arm of Danish conglomerate A.P. Moeller-Maersk A/S is looking to buy German peer Hamburg Süd, people with knowledge of the matter said, a deal that would help Maersk Line boost its presence in global trade with Latin America.

Maersk Line, the world’s leading container-shipping operator, is interested in acquiring the entire Hamburg Süd business, which had $6.7 billion in revenue in 2015, the German-owned line focused on South American routes.  

It will be Maersk Line first acquisition of an entire shipping company in more than a decade. 

Last week the Wall Street Journal reported that the Oetker family, which has owned Hamburg Süd since 1955, were thinking of selling. On Monday the Journal identified Maersk as a potential buyer. Other potential names included CMA CGM and China COSCO. 

The purchase would give Maersk a boost in the South American market, and it would give Hamburg Süd's operations access to Maersk’s global scale: Maersk Line is the largest carrier, and it is one-half of the massive 2M alliance. Hamburg Süd is not presently a member of an alliance, and its capacity accounts for about three percent of the world's total. 

Maersk has indicated that it will seek to grow through acquisitions rather than newbuildings, given the ample supply of existing tonnage in an oversupplied, depressed market. It has already acquired charters on six 13,000 TEU vessels previously used by Hanjin Shipping, which is presently in bankruptcy proceedings. 

Hamburg Süd considered a merger with Hapag-Lloyd in 2013. The talks did not succeed, and Hapag went on to initiate mergers with CSAV and UASC instead.

Media reports suggest the Oetker family will meet to discuss Hamburg Süd's fate on Wednesday. The Oetker Group and Hamburg Süd have declined to comment on any potential sale, but Hamburger Abendblatt reports that there is a division within the family about which course to take: Rudolf August Oetker's eldest sons are said to favor keeping Hamburg Süd, while his younger children favor a sale. The family's corporate group has a wide range of other business interests, from wine to private banking to food products – but shipping is by far its largest division, accounting for about half of group sales last year.

MAJOR SHIPPING LINES ANNOUNCE 2017 ROUTES

On Tuesday November 9, 2016, THE Alliance announced its 2017 route programme, which includes 31 services on all key east-west trade routes and a 240 strong container vessel fleet, reported JOC.com

The alliance is formed of Mitsui O.S.K Lines, NYK Line, K- Line, Hapag-Lloyd and Yang Ming Line; it previously included Hanjin Shipping before it announced its court receivership on August 31, 2016.

The new services will include one specifically for the Middle East, connecting Dammam, Jubai and the Persian Gulf to South East Asia and China. There will also be 16 trans-pacific trade routes and six North Atlantic routes connecting Northern Europe and the Mediterranean to Canada and the America; the alliance will control 21% of the Asia-Europe trade routes and 29% of the trans-pacific trade routes but these are set to increase to 35% and 40% respectfully.

The direct competitor to THE Alliance is the Ocean Alliance, who has also recently announced their planned services and port calls. PTI reported on November 3, 2016 that the alliance consisting of COSCO Container Lines, CMA CGM, Evergreen Line and Orient Overseas Container Line had signed a document entitled the Day One Product, which sets out the proposed network, including port rotation for each service loop.

K-Line, a member of THE Alliance has recently engaged in a merger with Nippon Yusen and Mitsui O.S.K Lines, which would mean 7% of the container line market being owned by them as a conglomerate, in a bid to protect them from failing in the ailing shipping market.

COSCO, CHINA SHIPPING MERGE SHIP BUILDING ARMS

• Combination will create China’s third biggest shipbuilding group

China’s two biggest state-owned shipping companies plan to merge 11 shipbuilding yards into a single entity in one of the industry’s biggest consolidation moves yet as ship orders hit record lows, according to people familiar with the matter.

If it goes ahead, the merger of the shipyards of China Ocean Shipping (Group) Co., or Cosco Group, and China Shipping Group Co. is expected to be announced by early next year, the people said.

The two companies had already combined their fleets and port operations last year to create China Cosco Holdings, the world’s fourth biggest container operator in terms of capacity. The combination of their shipbuilding arms will create China’s third biggest shipbuilding group.Cosco owns six yards and China Shipping Group owns five. Cosco also operates two joint-venture yards with Japan’s Kawasaki Heavy Industries Ltd.

It is unknown whether the joint ventures will be part of the merger. Kawasaki said Monday that it may exit the shipbuilding business.

Down payments for new vessels used to be 30%, the official said. But in the past 18 months, the share shrank to 10%, he said, adding to the challenges that shipbuilders face.

Chinese shipbuilding industry officials said the two companies have a combined workforce of more than 25,000. Job losses in mergers of state companies are frowned upon in China.

People involved in the process said the shipbuilding merger would be used as a model for a wider plan to merge the country’s two biggest shipbuilders— China Shipbuilding Corp. and China Shipbuilding Industry Co., which own dozens of yards along China’s Pacific coastline.

China builds roughly half of the world’s new ships. But the once-thriving industry has been shrinking steadily for the past four years on tumbling orders and Beijing’s evolving strategy to stop subsidizing unprofitable enterprises.

About three-quarters of the 1,800 shipyards China had in 2009 have closed “as Beijing stopped subsidizing the sector,” said George Xiradakis, chief executive of Athens-based XRTC maritime consultancy and an adviser to China Development Bank, one of China’s biggest shipping financiers.

“The word from Beijing is that it will continue to finance with strict performance criteria a handful of state shipbuilding conglomerates which are pushed to consolidate,” he said, “but the rest are left on their own.”

The shipbuilding consolidation is part of China’s strategy to get more of its growth from services and consumption than heavy industry and construction.



Chinese yards got a total of 127 orders this year amounting to $3 billion, compared with 621 orders worth $26.5 billion last year and 992 orders worth $33.7 billion in 2014.

“The Cosco-China Shipping yard merger will be supported from shipbuilding and repairs for the fleets of the two conglomerates that have already merged their shipping operations,” said Mr. Xiradakis. “But orders must also come from the outside if the yard merger is to be sustainable,” he said.

At least 20 medium and large private shipyards closed in China last year, according to the industry executives, with total job losses of around 40,000.

CMA-CGM ADJUSTS EASTERN AFRICAN ROUTE, MOGADISHU, SOMALIA NOW INCLUDED IN NOURA EXPRESS

In a continued effort to provide increased reliability and quality services in a challenging environment, CMA CGM will reorganize its services connecting India Middle East Gulf to East Africa strategic markets.

Starting mid July 2016, NOURA EXPRESS and SWAHILI services new configuration will provide significant improvements: Positive developments for reefer cargo from Port Victoria direct to India and to Europe with a weekly frequency instead of fortnightly.

Improved service reliability to Mogadishu from Mundra with direct service in 18 days instead of in transhipment, very fast transit time from Jebel Ali to Port Victoria in 18 days.

NOURA EXPRESS service operated with 4 vessels of 2,200 TEU will stop Salalah call and add in its port coverage Mundra and Port Victoria. Effective m/v MARIE DELMAS voy. 1339WS Mundra ETA July 24th, 2016, and as from m/v CMA CGM LATOUR voy. 1299WS Port Victoria on July 31st, 2016.

NOURA EXPRESS service new port coverage will be the following: Mundra - Khor Fakkan - Jebel Ali - Mombasa - Mogadishu - Port Victoria - Mundra.

SWAHILI service operated with 6 vessels up to 2,700 TEU linking India Middle East Gulf to Tanzania will be revised in order to respond better to customers’ need for service punctuality.

Very challenging operation conditions in Zanzibar with heavy port congestion has negatively impacted our scheduling. To restore Swahili service reliability, Mundra and Port Victoria calls are transferred on to Noura Express which has sufficient buffer time.

SWAHILI service new port rotation is effective with m/v DELMAS KETA voy. 1192SS Nhava Sheva ETA July 21st, 2016, as follows: Nhava Sheva - Khor Fakkan - Jebel Ali - Longoni - Dar Es Salaam - Zanzibar - Nacala (fortnightly) - Nhava Sheva 

CMA-CGM ADJUSTS EASTERN AFRICAN ROUTE, MOGADISHU, SOMALIA NOW INCLUDED IN NOURA EXPRESS

In a continued effort to provide increased reliability and quality services in a challenging environment, CMA CGM will reorganize its services connecting India Middle East Gulf to East Africa strategic markets.

Starting mid July 2016, NOURA EXPRESS and SWAHILI services new configuration will provide significant improvements: Positive developments for reefer cargo from Port Victoria direct to India and to Europe with a weekly frequency instead of fortnightly.

Improved service reliability to Mogadishu from Mundra with direct service in 18 days instead of in transhipment, very fast transit time from Jebel Ali to Port Victoria in 18 days.

NOURA EXPRESS service operated with 4 vessels of 2,200 TEU will stop Salalah call and add in its port coverage Mundra and Port Victoria. Effective m/v MARIE DELMAS voy. 1339WS Mundra ETA July 24th, 2016, and as from m/v CMA CGM LATOUR voy. 1299WS Port Victoria on July 31st, 2016.

NOURA EXPRESS service new port coverage will be the following: Mundra - Khor Fakkan - Jebel Ali - Mombasa - Mogadishu - Port Victoria - Mundra.

SWAHILI service operated with 6 vessels up to 2,700 TEU linking India Middle East Gulf to Tanzania will be revised in order to respond better to customers’ need for service punctuality.

Very challenging operation conditions in Zanzibar with heavy port congestion has negatively impacted our scheduling. To restore Swahili service reliability, Mundra and Port Victoria calls are transferred on to Noura Express which has sufficient buffer time.

SWAHILI service new port rotation is effective with m/v DELMAS KETA voy. 1192SS Nhava Sheva ETA July 21st, 2016, as follows: Nhava Sheva - Khor Fakkan - Jebel Ali - Longoni - Dar Es Salaam - Zanzibar - Nacala (fortnightly) - Nhava Sheva 

CMA-CGM ADJUSTS EASTERN AFRICAN ROUTE, MOGADISHU, SOMALIA NOW INCLUDED IN NOURA EXPRESS

In a continued effort to provide increased reliability and quality services in a challenging environment, CMA CGM will reorganize its services connecting India Middle East Gulf to East Africa strategic markets.

Starting mid July 2016, NOURA EXPRESS and SWAHILI services new configuration will provide significant improvements: Positive developments for reefer cargo from Port Victoria direct to India and to Europe with a weekly frequency instead of fortnightly.

Improved service reliability to Mogadishu from Mundra with direct service in 18 days instead of in transhipment, very fast transit time from Jebel Ali to Port Victoria in 18 days.

NOURA EXPRESS service operated with 4 vessels of 2,200 TEU will stop Salalah call and add in its port coverage Mundra and Port Victoria. Effective m/v MARIE DELMAS voy. 1339WS Mundra ETA July 24th, 2016, and as from m/v CMA CGM LATOUR voy. 1299WS Port Victoria on July 31st, 2016.

NOURA EXPRESS service new port coverage will be the following: Mundra - Khor Fakkan - Jebel Ali - Mombasa - Mogadishu - Port Victoria - Mundra.

SWAHILI service operated with 6 vessels up to 2,700 TEU linking India Middle East Gulf to Tanzania will be revised in order to respond better to customers’ need for service punctuality.

Very challenging operation conditions in Zanzibar with heavy port congestion has negatively impacted our scheduling. To restore Swahili service reliability, Mundra and Port Victoria calls are transferred on to Noura Express which has sufficient buffer time.

SWAHILI service new port rotation is effective with m/v DELMAS KETA voy. 1192SS Nhava Sheva ETA July 21st, 2016, as follows: Nhava Sheva - Khor Fakkan - Jebel Ali - Longoni - Dar Es Salaam - Zanzibar - Nacala (fortnightly) - Nhava Sheva 

CMA-CGM ADJUSTS EASTERN AFRICAN ROUTE, MOGADISHU, SOMALIA NOW INCLUDED IN NOURA EXPRESS

In a continued effort to provide increased reliability and quality services in a challenging environment, CMA CGM will reorganize its services connecting India Middle East Gulf to East Africa strategic markets.

Starting mid July 2016, NOURA EXPRESS and SWAHILI services new configuration will provide significant improvements: Positive developments for reefer cargo from Port Victoria direct to India and to Europe with a weekly frequency instead of fortnightly.

Improved service reliability to Mogadishu from Mundra with direct service in 18 days instead of in transhipment, very fast transit time from Jebel Ali to Port Victoria in 18 days.

NOURA EXPRESS service operated with 4 vessels of 2,200 TEU will stop Salalah call and add in its port coverage Mundra and Port Victoria. Effective m/v MARIE DELMAS voy. 1339WS Mundra ETA July 24th, 2016, and as from m/v CMA CGM LATOUR voy. 1299WS Port Victoria on July 31st, 2016.

NOURA EXPRESS service new port coverage will be the following: Mundra - Khor Fakkan - Jebel Ali - Mombasa - Mogadishu - Port Victoria - Mundra.

SWAHILI service operated with 6 vessels up to 2,700 TEU linking India Middle East Gulf to Tanzania will be revised in order to respond better to customers’ need for service punctuality.

Very challenging operation conditions in Zanzibar with heavy port congestion has negatively impacted our scheduling. To restore Swahili service reliability, Mundra and Port Victoria calls are transferred on to Noura Express which has sufficient buffer time.

SWAHILI service new port rotation is effective with m/v DELMAS KETA voy. 1192SS Nhava Sheva ETA July 21st, 2016, as follows: Nhava Sheva - Khor Fakkan - Jebel Ali - Longoni - Dar Es Salaam - Zanzibar - Nacala (fortnightly) - Nhava Sheva 

CMA-CGM ADJUSTS EASTERN AFRICAN ROUTE, MOGADISHU, SOMALIA NOW INCLUDED IN NOURA EXPRESS

In a continued effort to provide increased reliability and quality services in a challenging environment, CMA CGM will reorganize its services connecting India Middle East Gulf to East Africa strategic markets.

Starting mid July 2016, NOURA EXPRESS and SWAHILI services new configuration will provide significant improvements: Positive developments for reefer cargo from Port Victoria direct to India and to Europe with a weekly frequency instead of fortnightly.

Improved service reliability to Mogadishu from Mundra with direct service in 18 days instead of in transhipment, very fast transit time from Jebel Ali to Port Victoria in 18 days.

NOURA EXPRESS service operated with 4 vessels of 2,200 TEU will stop Salalah call and add in its port coverage Mundra and Port Victoria. Effective m/v MARIE DELMAS voy. 1339WS Mundra ETA July 24th, 2016, and as from m/v CMA CGM LATOUR voy. 1299WS Port Victoria on July 31st, 2016.

NOURA EXPRESS service new port coverage will be the following: Mundra - Khor Fakkan - Jebel Ali - Mombasa - Mogadishu - Port Victoria - Mundra.

SWAHILI service operated with 6 vessels up to 2,700 TEU linking India Middle East Gulf to Tanzania will be revised in order to respond better to customers’ need for service punctuality.

Very challenging operation conditions in Zanzibar with heavy port congestion has negatively impacted our scheduling. To restore Swahili service reliability, Mundra and Port Victoria calls are transferred on to Noura Express which has sufficient buffer time.

SWAHILI service new port rotation is effective with m/v DELMAS KETA voy. 1192SS Nhava Sheva ETA July 21st, 2016, as follows: Nhava Sheva - Khor Fakkan - Jebel Ali - Longoni - Dar Es Salaam - Zanzibar - Nacala (fortnightly) - Nhava Sheva 

CMA-CGM ADJUSTS EASTERN AFRICAN ROUTE, MOGADISHU, SOMALIA NOW INCLUDED IN NOURA EXPRESS

In a continued effort to provide increased reliability and quality services in a challenging environment, CMA CGM will reorganize its services connecting India Middle East Gulf to East Africa strategic markets.

Starting mid July 2016, NOURA EXPRESS and SWAHILI services new configuration will provide significant improvements: Positive developments for reefer cargo from Port Victoria direct to India and to Europe with a weekly frequency instead of fortnightly.

Improved service reliability to Mogadishu from Mundra with direct service in 18 days instead of in transhipment, very fast transit time from Jebel Ali to Port Victoria in 18 days.

NOURA EXPRESS service operated with 4 vessels of 2,200 TEU will stop Salalah call and add in its port coverage Mundra and Port Victoria. Effective m/v MARIE DELMAS voy. 1339WS Mundra ETA July 24th, 2016, and as from m/v CMA CGM LATOUR voy. 1299WS Port Victoria on July 31st, 2016.

NOURA EXPRESS service new port coverage will be the following: Mundra - Khor Fakkan - Jebel Ali - Mombasa - Mogadishu - Port Victoria - Mundra.

SWAHILI service operated with 6 vessels up to 2,700 TEU linking India Middle East Gulf to Tanzania will be revised in order to respond better to customers’ need for service punctuality.

Very challenging operation conditions in Zanzibar with heavy port congestion has negatively impacted our scheduling. To restore Swahili service reliability, Mundra and Port Victoria calls are transferred on to Noura Express which has sufficient buffer time.

SWAHILI service new port rotation is effective with m/v DELMAS KETA voy. 1192SS Nhava Sheva ETA July 21st, 2016, as follows: Nhava Sheva - Khor Fakkan - Jebel Ali - Longoni - Dar Es Salaam - Zanzibar - Nacala (fortnightly) - Nhava Sheva 

KENYA REPORTS CARGO INCREASE AT MOMBASA PORT

Cargo traffic through Kenya's biggest port, Mombasa, increased by 1.4 percent in the first half of this year compared with the same period last year, the port's managing director said on Monday. 

The Indian Ocean port serves as the main trade gateway for East Africa, handling fuel and consumer goods imports as well as exports of tea and coffee from landlocked nations like Uganda. 

Managing Director Catherine Mturi said cargo volume rose to 13.4 million tonnes from 13.2 million handled a year earlier. Total volume rose despite container traffic falling by 0.6 percent to 527,523 TEUs (twenty foot equivalent units) thanks to an increase in loose cargo not shipped by container such as grains and railway steel bars. 

"This is below the expected global average growth rate of four percent per annum, but with the expansion and improved efficiency currently, we should do much better by end of the year and beyond," Mturi said in the statement. 

Early this month Kenya inaugurated the first part of a new container terminal at the port, which is expected to boost capacity by 50 percent. 

The port's management says it has reduced the time it takes to evacuate a container from the port by a day to 4.3 days, and the time it takes to load and offload a ship to three days from 3.7 days previously. The east African nation plans to build a second port in Lamu, north of Mombasa, with a capacity of 23 million tonnes per year.

KENYA COMMISSIONS A NEW $296.74 M CONTAINER TERMINAL

Kenya Commissions Terminal at Mombasa Port

Kenya on Saturday inaugurated the first part of a new container terminal at Mombasa which is expected to boost by 50 percent the volume of cargo handled by East Africa's largest seaport. Construction of the 30 billion shilling ($296.74 million)terminal began in March 2012 and was completed in February this year. The project was financed by a loan from Japan through the Japan International cooperation agency (JICA), and Kenya will repay the loan over a 40-year period.

A gateway to East and Central Africa, the Indian Ocean port funnels imports of fuel and consumer goods as well as exports of tea and coffee from landlocked neighbours such as Uganda and Rwanda.

President Uhuru Kenyatta, who opened the facility, said the terminal heralded "a whole new era in the development of our ports and facilitation of the region's international trade". A bigger cargo capacity for Mombasa was crucial because of the discovery of oil and gas in the region, he said.

British explorer Tullow Oil and partner Africa Oil discovered oil in Lokichar in northwest Kenya in 2012. Recoverable reserves are an estimated 750 million barrels of crude and commercial production is expected to commence in 2017. Uganda also has confirmed crude reserves while Kenya's other neighbour Tanzania has huge gas discoveries.

The new terminal can handle 550,000 twenty foot equivalent units (TEUs) per year and will ramp up Mombasa's existing annual cargo handling capacity from 1.05 million TEUs to 1.6 million TEUs.

"In five years' time, we expect to have hit 2.5 million TEUs after completing the second phase," Kenya's finance minister, Henry Rotich, said.

He added the country had already signed an agreement with JICA for credit worth 32 billion shillings to fund construction of the new terminal's second part. 1 = 101.1000 Kenyan shillings) 

SOMALIA OPENS A NEW CONTAINER TERMINAL IN MOGADISHU PORT, SOMALIA

The Somalia Government has opened a New Container Terminal at Mogadishu Port in effort to make Mogadishu port once again, a preferred key gateway to the Indian Ocean Countries in the International Trade of the region.

The Port is already under heavy restructuring and Maintenance by the Turkish Government Agency and A host of Shipping Companies that has made it now served by Major Shipping Lines Like CMA-CGM and MSC Among other NVOCC's.

The Scope of the agreement entered with the Somalia Government in the Mogadishu Port Infrastructure covers stacking and handling of full import and export containers to / from port of Mogadishu, empty containers storage and any additional services required for reefer and dry container, as well as chilled cargoes.

In second phase, Mogadishu Port Terminal further plans to develop a Logistics Centre comprising of a warehouse to store loose cargoes from sea and air freight and a cold store for perishable cargoes to develop and improve exports of Somali fruit, fish and meat to various parts of the world.

African Shipping Line already operates Container Liner Agency at Mogadishu Port, Somalia.

DP WORLD EXPANSION INTO SOMALIA PORT OF BERBERA

Summary: DP World of Dubai has agreed to manage the Somalia'sPort of Berbera, In Somaliland, 

A Break Away Federal Part of Somalia, in a landmark deal this month that opens a new point of access to the Red Sea and gives the global ports operator an alternative hub to Djibouti in the Horn of Africa. Under the terms of the concession agreement, according to a person who has seen the document, Somaliland will grant the Dubai-based company the right to manage the Red Sea Port of Berbera for 30 years.

DP World said Sunday that it agreed to the port-management deal earlier this month in Dubai. Under the term sheet —a nonbinding agreement that serves as a precursor to a more formal deal—the company is to set up a joint venture to manage and invest in the port. DP World put a $442 million value on the project, but said it would be a phased investment and depended on port volumes.

The term sheet—which calls for DP World to pay $5 million a year plus 10% on port revenue to Somalia—is a breakthrough in developing access to the sea for landlocked Ethiopia, the region’s largest economy, which until now solely relies on the Port of Djibouti for its exports.

DP World will control 65% of the joint venture and five of seven board seats, with the rest going to Somaliland, an enclave of Somalia, according to the term sheet, Reports says.

It is the biggest single investment agreement in breakaway Somaliland Federal State—and treats the northern Somali region as ade facto independent nation, a position Somalia rejects. The U.N. doesn’t acknowledge Somaliland as independent, and it isn’t recognized by any other country in the world.

Other investment agreements in Somaliland have included fisheries and offshore oil-exploration licenses, but they have mostly been acquired for small sums or on the promise of job creation and development.

A free-trade zone was also planned to support the development of trade through Berbera, DP World said.

Sultan Ahmed Bin Sulayem, DP World’s chairman and chief executive, portrayed the port as a future magnet for shipping to East Africa that would spur regional economic growth.

“Investment in this natural deep-water port will attract more shipping lines to East Africa and its modernization will act as a catalyst for the growth of the country and the region’s economy,” he said.

AFRICAN SHIPPING LINE offers Ship and Container Agency at Berbera Port

The ambitions of Dubai, which is a part of the United Arab Emirates, in the Horn of Africa have run into trouble over the past year. The country left an air base it was leasing in Djibouti after a dispute with the government there—opting to lease another base in Assab in neighboring Eritrea, a remote state under U.N. sanctions for supporting armed groups in neighboring Somalia.

“Berbera represents a pragmatic compromise, providing a friendly corridor for Ethiopian markets while signaling that Djibouti—though by far the most developed gateway to the Horn of Africa—will no longer enjoy a de facto monopoly over trade with the region’s landlocked markets,” Reports say

Another driver for the Berbera deal might be a long-running dispute surrounding DP World’s port in Djibouti, the largest container terminal in Africa. The Djibouti government accused DP World in 2014 of paying bribes to the former head of its ports authority, Abdourahman Boreh, to secure a concession to operate the Doraleh Container Terminal in 2000. Djibouti revoked DP World’s 20-year concession and launched an arbitration case in London.

DP World has denied the allegations, and a U.K. court found in March that Mr. Boreh didn’t take bribes. DP World has continued to manage the port as the legal proceedings continue.

COSCO & CHINA SHIPPING LINE MERGER DONE

China’s two state shipping giants have combined their container-shipping assets among other restructuring efforts, as part of a multi billion-dollar merger to strengthen the nation’s competitiveness in an industry battered by weak demand and persistent overcapacity.

China’s State Cabinet on Friday approved the merger between China Ocean Shipping (Group) Co., or Cosco Group, and China Shipping (Group) Co., according to statement posted on the website of China’s state-owned Assets Supervision and Administration Commission, ending years of speculation among analysts that the government would ultimately combine the two groups to boost efficiency.China Cosco Holdings Co. said in an exchange filling that it plans to consolidate the container-shipping operations with its state-backed rival China Shipping Container Lines Co. through acquiring a total of 33 container-shipping related units and affiliates from CSCL for 1.14 billion yuan ($177 million) and leasing its container ships.Meanwhile, the Hong Kong and Shanghai-listed flagship of Cosco Group plans to sell all its dry-bulk shipping businesses to its state parent for 6.77 billion yuan.China Shipping Development Co., the oil-and-bulk-shipping unit of China Shipping Group, also plans to buy the oil shipping business from China Cosco Group, it said.x
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The asset restructuring also covers the two groups’ ports and oil-tanker-shipping operations. Cosco Pacific Ltd., the Hong Kong-listed port-operating arm of Cosco Group will pay 7.63 billion yuan to buy the port-operating business of China Shipping (Group) Co. Cosco Pacific also plans to sell its container leasing business—Florens Container Holdings Ltd.—to a unit of China Shipping Container Lines Co. for 7.78 billion yuan.

KENYA'S AMBITIOUS USD 290 MILLION SECOND CONTAINER TERMINAL BEGINS

Kenya Ports Authority has begun operations at the new Sh29 billion second container terminal, setting pace for the port's new cargo handling capacity.

Container vessel MV Busan Trader, with a length overall of 210 metres docked at berth 21 on Monday, becoming the first vessel at the terminal. KPA public relations manager Bernard Osero said the ship was expected to complete discharging 934 containers yesterday, and load a similar number on her return voyage.

Kenya's Transport and Infrastructure Permanent secretary Irungu Nyakera said the facility “should be put into maximum use to enhance efficiency in cargo handling”. The first phase of the terminal, which has an annual capacity of 550,000 TEUs, was handed over to KPA in February, boosting the port’s container handling capacity by 50 per cent.

It has increased total terminal capacity at the Port of Mombasa to 1.55 million TEU’s from 1.1 million. The first phase comprises berths number 20 and 21 measuring 250 metres and 300 metres, with an additional small berth.

Maersk Line, MSC, African Shipping Line, CMA-CGM, Emirates Shipping Lines all operate from Mombasa Port.

COSCO SHIPING CORPORATION DEAL WITH VALE (BRAZIL)

The newly-created shipping major China COSCO Shipping Corporation COSCOCS has penned a 27-year agreement with Brazilian miner Vale that will see the Chinese shipping giant transport 16 million tons of iron ore for Vale on annual basis, the Chinese company said.

The deal has been signed earlier today in Beijing and marks the first major deal COSCOCS has signed since its formal launching. The agreement was signed by Ye Weilong, E.V.P of China COSCO Shipping, and Luiz Meriz, Executive Manager for Shipping and Iron Ore Marketing  of Vale.

“The signing of the agreement marks the commencement of a new chapter of the cooperation between the two companies,” a statement from China COSCO Shipping reads.

COSCOCS was officially launched in Shanghai on 18 February, following a merger between China Shipping and Cosco, thus becoming the world’s largest dry bulk and tanker owner and fourth on global scale with respect to its container fleet.

NEW SERVICES ROUTES : TURKEY -AFRICA & INDIA - AFRICA SERVICE

AFRICA SHIPPING LINE is introducing 2 New Feeder Services Covering Africa/Red Sea Ports, Turkey Ports, Arabia and Indian Ports Services Routes:

DUMMO SERVICE : CONNECTING DUBAI - MUMBAI - MOGADISHU

DUMMO

TURKSOM SERVICE : CONNECTING TURKEY - DJIBOUTI - MOGADISHU

TURKSOM

For More Information, Please email: info@ashline.net or Visit our Contacts Page

NEW SERVICES ROUTES : TURKEY -AFRICA & INDIA - AFRICA SERVICE

AFRICA SHIPPING LINE is introducing 2 New Feeder Services Covering Africa/Red Sea Ports, Turkey Ports, Arabia and Indian Ports Services Routes:

DUMMO SERVICE : CONNECTING DUBAI - MUMBAI - MOGADISHU

DUMMO

TURKSOM SERVICE : CONNECTING TURKEY - DJIBOUTI - MOGADISHU

TURKSOM

For More Information, Please email: info@ashline.net or Visit our Contacts Page

NEW SERVICES ROUTES : TURKEY -AFRICA & INDIA - AFRICA SERVICE

AFRICA SHIPPING LINE is introducing 2 New Feeder Services Covering Africa/Red Sea Ports, Turkey Ports, Arabia and Indian Ports Services Routes:

DUMMO SERVICE : CONNECTING DUBAI - MUMBAI - MOGADISHU

DUMMO

TURKSOM SERVICE : CONNECTING TURKEY - DJIBOUTI - MOGADISHU

TURKSOM

For More Information, Please email: info@ashline.net or Visit our Contacts Page