Sea Freight in Asia: In brief - International Pages - Brief Article

Business Asia, May 5, 2000

* Seoul -- South Korea's Hanjin Shipping Co has launched an information and telecommunications unit the company says will provide an Internet-supported logistics service. The carrier said its CyberLogitec unit signed a business alliance with five other Internet and venture companies to establish Korea's first logistics business-to-business and market-to-market electronic-commerce website (www.LogisticsExch.net). The venture "is one of the ways CyberLogitec is attempting to diversify its information systems for e-commerce", said Eui Sikkwon, the unit's chief executive.

-- Reuters

* Shanghai -- China Ocean Shipping Company (COSCO) is the latest in the shipping industry to sign up for bolero.net the cross-industry community that is moving world trade on-line. COSCO owns and operates 500 ships of about 17 million deadweight tonnes. Group president Wei Jiafu said "bolero.net gives us a significant edge in the very competitive world shipping market. It allows (the company) to enter the B2B e-commerce marketplace on behalf of our customers, and build value-added applications that pass on to them significant benefits in terms of increased efficiency".

-- Reuters

* Tokyo -- Moody's Investors Service, a debt-rating agency, said it placed the long-term ratings of Japan's three biggest builders of ships and heavy machinery on review, reflecting concern about their ability to return to profit and revive their finances. The company said it's considering downgrading the senior unsecured debt rating of Mitsubishi Heavy Industries Ltd, currently Aa1, as well as its Baa1 rating for both Kawasaki Heavy Industries Ltd and Ishikawajima-Harima Heavy Industries Ltd. The action was based on concern it will take longer than expected for the companies to "recover sufficient profitability and cash flow" to revamp their balance sheets, Moody's said.

-- Bloomberg

* Singapore -- Some of the world's top cruise companies are hiring Gurkhas, an ethnic group of people from Nepal, many of whom served as soldiers in Indian or British armies, to work as security guards on their vessels to deter piracy and ensure safety, the Business Times reported, citing publicity materials from Anglo Marine Overseas Services. There are about 375 Gurkhas on 75 ships, working as security guards, deckhands and engine room and hospitality staff, with cruise ships owned by companies such as Peninsular & Orient Steam Navigation Co, Royal Caribbean Cruises Ltd and Star Cruises, the report said.

-- Bloomberg

* Hong Kong -- Hong Kong's port cargo throughput increased by 12 per cent in the fourth quarter of 1999 over a year earlier to 44.4 million tonnes, according to data released by the Census and Statistics Department.

While inward port cargo grew by 10 per cent to 28.1 million tonnes, outward port cargo showed a 15 per cent increase to 16.3 million tonnes.

Within port cargo, seaborne cargo amounted to 33.7 million tonnes in the fourth quarter of 1999, representing a 9 per cent growth over a year earlier.

-- Asia Pulse

* Jakarta -- The communications ministry says it will overhaul the operations system at the Tanjung Prick port of Jakarta to streamline traffic in the port. Tarcius Walla, a senior official of the ministry, said the system had hampered exports and imports.

Walla said an international shipping conference had complained about the slow service in Tanjung Prick and the threat of sea piracy.

The Indonesian National Ship Owner's Association (INSA) blamed the terminal operators for the slow loading. -- Asia Pulse

-- Asia Pulse

* Singapore -- Shipping group Osprey Maritime Ltd said it plans a US$70 million injection of new equity together with a major restructuring.

A company statement said it had received an offer from Schroder Partners Asia, advisers to the Schroder Venture Partners Asia Pacific Fund, to invest about US$54 million by means of a placement and rights issue.

The Schroder Fund would subscribe for new ordinary shares equal to about 20 per cent of the company at a price of S$0.35 a share, which would raise about US$14 million.

* Manila -- International Container Terminal Services, the Philippines' largest port operator, has won a concession to run a port in Tanzania, only days after pulling out of a port project in Argentina. The Philippine port operator on April 14 pulled out of the Argentine port project.

-- Bloomberg

* Hong Kong -- Pacific Ports Co said it will pay HK$4.65 billion (US$596.6 million) for all ports and related investments held by its parent New World Infrastructure, a unit of Hong Kong's fourth-biggest developer. The agreement was announced in December, though the final price needed to be fixed. The price could have ranged from HK$4.45 billion to HK$4.68 billion. Pacific Ports already paid New World HK$4.45 billion in stock, and will now issue 185.6 million convertible preference shares to complete the deal.

-- Bloomberg

* Shanghai -- A new sea transportation route connecting Shanghai, Hong Kong, Japan and the United States has been launched. It is jointly operated by the China Ocean Shipping Corporation (COSCO), Japan's Kawasaki Kisen Kaisha Ltd and the Yang Ming Lines of Taiwan. The route will shorten travel time between Hong Kong and New York from 33 days to 26 days. Nine ships with transportation capacity of 3400 TEUs each will be used on the route, which is to be run every week. The new route is expected to bring a substantial rise in transportation business between China and North America after China's entry into the World Trade Organisation.