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sandra

Jun 27
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Chantier Davy Preferred Yard to Build New Canadian Ferries

By 2019 Newsletter week 26

The Federal Government in Ottawa started the negotiations with the Canadian Davie shipyard. They have been chosen as the preferred builder for two ferries which will replace the ageing MADELEINE (Madeleine-Prince Edward route) and HOLIDAY ISLAND (Wood Islands-Caribou). Both vessels, respectively from 1981 and 1971, are nearing the end of their life cycle.

The Government conducted an industry analysis, which concluded that the Davie yard is the only Canadian shipyard with the capacity, experience and capability to build these ferries in the required timeframe.

A contract has not been signed, yet.

Ferry Shipping News understands that operator CTMA was not involved in the design process of the new ferries they might have to operate, according to some radio interviews. CTMA also wonders if the Davie yard is capable of building a 130m ferry.

CTMA is also still waiting for a new contract to operate the lifeline services.

Davie, the largest shipyard in Canada, is now building two LNG ferries for the Société des traversiers du Quebec. These prototypes will be the first LNG-supplied ferries ever built in North America.

Jun 27
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FERRY FINANCE

By 2019 Newsletter week 26

Flensburg Shipyard Awaits Finance To Finish Three Ro-Pax Ferries

Siem Industries published its annual report, which included a chapter about the shipyard in Flensburg.

Some highlights:

  • For the fiscal year 2018, Flensburger Schiffbau-GmbH & Co KG had revenues of EUR 213 million, an EBITDA of EUR -102 million, and a net loss of EUR -111 million.
  • B YEATS was delivered substantially late at the end of 2018 at a material loss caused mainly by the lack of performance by subcontractors.
  • FSG contracted for four additional vessels during 2018 including two passenger ferries and two ro-ro carriers.
  • The current backlog is approximately EUR 860 million consisting of four Ro-Pax vessels and two Ro-Ro vessels.
  • One Ro-Pax vessel (HONFLEUR) is in the advanced construction stage and should be delivered by early 2020.
  • The remaining three Ro-Pax vessels are delayed and awaiting construction finance.
  • Siem’s ownership of FSG is considered as non-core and new equity in FSG was raised in Q1 by a private placement which diluted the Company’s holding in FSG to 24%.
  • Changes in the yard’s management were implemented in early 2019.
Jun 27
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Attica Group Is in the Process of Concluding a 5-Year Bond Loan

By 2019 Newsletter week 26

According to a Euro2day article (in Greek), the Attica Group is in the process of concluding a 5-year bond loan from the domestic market within July. The goal is to raise funds from EUR 100 to 170 million. The 100 million of that loan will be used to repay existing bank loans (pp. Fortress’s loans were repaid at the end of last year) and therefore high-value pre-payments will be removed. Another EUR 25 million will be made available for investments to ship scrubbers in order to meet the new EU stricter standards. If additional funds are raised (up to EUR 45 million), they will be used for general business purposes.

Jun 27
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Successful Fiscal Year for BC Ferries

By 2019 Newsletter week 26

BC Ferries’ report of the fiscal year ending on 31 March 2019, sees the following highlights:

  • Consolidated net earnings of $52.2 million for fiscal 2019 ($59.9 million)
  • Highest vehicle traffic levels ever
  • Passenger traffic levels were the second highest in the company’s history.
  • Increase in operating because of higher bunker prices, wage rate increases and higher depreciation. As a result, total operating expenses increased $36.4 million from $784.3 million to $820.7 million.

BC Ferries invested:

  • $133.5 million in vessel upgrades and modifications
  • $49.0 million in new vessels
  • $28.2 million in information technology
  • $19.5 million in terminal building upgrades
  • $10.9 million in terminal marine structures

BC Ferries now has five vessels operating on LNG, and is looking at all possible “green” solutions. It currently has two Island Class electric battery hybrid ships under construction. When electric technology matures and electricity is available in the quantities required, BC Ferries plans to operate them as fully electric ferries.

BC Ferries also continues to focus on fare affordability.

Jun 27
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Grimaldi Asks Italian Authorities to Stop Paying Public Subsidies to Tirrenia CIN

By 2019 Newsletter week 26

Italy’s financial newspaper MF-MilanoFinanza revealed that, earlier this month, Grimaldi Group sent a petition to the local Transport Minister, the Antitrust Authority and the Court of Audit, asking for an early termination of the subsidies (EUR 72 million per year) paid to CIN Tirrenia by the Italian State.

This subsidy supports lifeline maritime transportation with Sardinia, Sicily and Tremiti Islands.

Grimaldi stated that the public subsidies should be stopped due to breach of the public contract following the case sentenced by the Italian Competition Authority for alleged abuse of dominant position in the freight business in Sardinia and the alleged deferred payments under the CIN-Tirrenia purchase agreement.

Onorato Armatori later replied that Grimaldi’s petition is based on “false information”.

Jun 27
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Closing of MacGregor’s TTS Acquisition Postponed to Q3 2019

By 2019 Newsletter week 26

MacGregor, part of Cargotec, announced on 8 February, 2018 that it has entered into an agreement to acquire the marine and offshore businesses of TTS Group ASA. The acquisition is subject to regulatory approvals from the competition authorities in Germany, South Korea and China. MacGregor announced the approval from the German regulator on 6 November 2018 and the approval from the South Korean regulator on 27 December 2018.

MacGregor announced in March that it expected to receive approval from the competition authority in China and close the transaction during Q2 2019. Due to a longer than expected regulatory process in China, the company currently expects closing of the transaction to take place in Q3 2019.

Jun 27
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IN THE MEDIA

By 2019 Newsletter week 26

Brittany Ferries Might Be Interested in Condor Ferries

An internal letter from Brittany Ferries informed its employees that the company might be interested in taking over Condor Ferries, together with a co-investor.
Brittany Ferries would not like to see Condor being taken over by a competitor.
The BF management said it was too early to comment.

Condor Ferries is currently owned by The Australian Macquarie Fund.

Jun 27
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SHORT NEWS

By 2019 Newsletter week 26
  • DFDS’ second Chinese newbuilding TROY SEAWAYS has started to work on the Turkey-Italy service, setting a freight record for the company, by loading 552 units.
  • Wagenborg Shipping confirmed the sale of ro-ro vessels SCHIEBORG and SLINGEBORG to AB DFDS Seaways on 17 June 2019. The vessels have been renamed BELGIA SEAWAYS and GOTHIA SEAWAYS respectively.