The United Arab Emirates has seized a cargo ship bound for Iran with a cache of banned rocketpropelled grenades and other arms from North Korea, the first such seizure since sanctions against North Korea were ramped up, diplomats and officials said on Friday.
The seizure earlier this month was carried out in accordance with new UN Security Council sanctions meant to derail North Korea's nuclear weapons programme, but which also ban the North's sale of any conventional arms.
Diplomats identified the vessel as a Bahamas-flagged cargo vessel, the ANL Australia ."We can confirm that the UAE detained a North Korean vessel containing illicit cargo," a Western diplomat said.
Turkey's deputy UN ambassador, Fazli Corman, who chairs the Securit y Council's sanctions panel, also confirmed the incident without providing details and said council members are examining the seriousness of it.
The UAE, a hub for Iranian goods,seized the ship earlier in August. The ship is registered in the Bahamas, a common country of registry for vessels, but it wasn't immediately clear who owns it nor where the owner is based.
The Security Council's latest resolution came in the wake of North Korea's second nuclear test in May and firing of six short-range rockets.
The ship's seizure and reported violation of a UN arms embargo was reported by the UAE in a confidential letter two weeks ago to the council's sanctions committee for North Korea,which is comprised of diplomats from all 15 nations on the Security Council,according to diplomats and officials.
The Financial Times first reported the weapons' seizure on Friday.
Monday, August 31, 2009
Thursday, August 27, 2009
Ministry of Commerce commits 2 billion baht to drive Thai logistics
Logistics is one of the key elements of trade and investment relations being developed by ASEAN, including ASEAN+3, ASEAN+6 and ASEAN-China and in relation to ASEAN countries around the Mekong Region.
Ralated projects being discussed at the ASEAN level cover border agreements dealing with cargo. A newtwork of distribution centres, transit stations and cargo portals supporting international trade is also being developed. Various projects will also support maritime trade including adoption of incoterms and multiple transport forms. collaboration between the public and private sectors in developing infrastructure and providing logistics is being encouraged.
In this connection, the Thai government has developed a program of related economic incentives involving a budget of over US$2 billion. The money will be used to develop logistics systems around the country, with emphasis on improving rail and water trasnportatio. The possibility of joint venture projects with private companies in China under the supervision of the Chinese government to develop high-speed rail systems and para-rail systems linkign maritime transport with rail systems in southern China is also being looked at. Meanwhile, the rail system from northeast Thailand to Laem Chabang Deep-Sea Port is also being developed and both projects are expectedto progress considerably following the impending visit of Thai Commerce Minister, Korbsak Sabhavasu, to China.
The Deputy Minister added that: By the end of this year, our logistics trade policies will be implemented in two ways, offensively and defensively. Defensive implementation involves creating new logistics pathways to target countries, including both standard and advanced formats, so as to stimulate trade in various targeted regions."
Defensive implementation will also extend to encouraging Thai logistics companies to find solutions to their liquidity problems with help from the Small and Medium Enterprises Development Bank of Thailand (SME Bank). A logistics management network will be established under two groups, namely Thai Logistics Alliance Co., Ltd. (TLA), comprising 31 members, and siam Logistics Alliance Co., Ltd. (SLA) comprising 26 members. The objective here is to expand water and rail-based transportation services and encourage more widespread use by reducing costs and increasing efficiency and customer service.
Among the top priority projects is Pakbara Deep-Sea Port in Satun province which will be developed as part of efforts to oepn up trade routes to the BIMTEC group comprising India, Sri Lanka, Bangladesh, Nepal, Bhutan, Myanmar and Thailand. Backed by full business incentives, the new port will be a gateway to economic development for the five southern border provinces of Thailand. It will promote trade between Thailand and India, the Middle East, Europe and Africa, thereby advancing Thailand's competitiveness in doing business with the West.
The Thai economy and society are inextricably linked to the rest of the workd. Therefore, we must adapt in order to develop. If we make themost of the opportunities presented by globalisation now by enlisting the help and cooperation of all citizens, our prospects for the future should be brighter than ever.
As Chairman of Logistics Trade, Deputy Commerce Minister Mr. Alongkorn Pollabutr said: "We expect to see rapid progress in implementing the free trade plans within 2009. Thailand will become capable of providing far more sophisticated logistics services to ASEAN members. In order to build the momentum for more active ASEAN markets, we will encourage the private sector to get invloved. With this in place, we expect to see Thailand's intra-ASEAN trade growing at a rate of at least 10-20% annually"
Ralated projects being discussed at the ASEAN level cover border agreements dealing with cargo. A newtwork of distribution centres, transit stations and cargo portals supporting international trade is also being developed. Various projects will also support maritime trade including adoption of incoterms and multiple transport forms. collaboration between the public and private sectors in developing infrastructure and providing logistics is being encouraged.
In this connection, the Thai government has developed a program of related economic incentives involving a budget of over US$2 billion. The money will be used to develop logistics systems around the country, with emphasis on improving rail and water trasnportatio. The possibility of joint venture projects with private companies in China under the supervision of the Chinese government to develop high-speed rail systems and para-rail systems linkign maritime transport with rail systems in southern China is also being looked at. Meanwhile, the rail system from northeast Thailand to Laem Chabang Deep-Sea Port is also being developed and both projects are expectedto progress considerably following the impending visit of Thai Commerce Minister, Korbsak Sabhavasu, to China.
The Deputy Minister added that: By the end of this year, our logistics trade policies will be implemented in two ways, offensively and defensively. Defensive implementation involves creating new logistics pathways to target countries, including both standard and advanced formats, so as to stimulate trade in various targeted regions."
Defensive implementation will also extend to encouraging Thai logistics companies to find solutions to their liquidity problems with help from the Small and Medium Enterprises Development Bank of Thailand (SME Bank). A logistics management network will be established under two groups, namely Thai Logistics Alliance Co., Ltd. (TLA), comprising 31 members, and siam Logistics Alliance Co., Ltd. (SLA) comprising 26 members. The objective here is to expand water and rail-based transportation services and encourage more widespread use by reducing costs and increasing efficiency and customer service.
Among the top priority projects is Pakbara Deep-Sea Port in Satun province which will be developed as part of efforts to oepn up trade routes to the BIMTEC group comprising India, Sri Lanka, Bangladesh, Nepal, Bhutan, Myanmar and Thailand. Backed by full business incentives, the new port will be a gateway to economic development for the five southern border provinces of Thailand. It will promote trade between Thailand and India, the Middle East, Europe and Africa, thereby advancing Thailand's competitiveness in doing business with the West.
The Thai economy and society are inextricably linked to the rest of the workd. Therefore, we must adapt in order to develop. If we make themost of the opportunities presented by globalisation now by enlisting the help and cooperation of all citizens, our prospects for the future should be brighter than ever.
As Chairman of Logistics Trade, Deputy Commerce Minister Mr. Alongkorn Pollabutr said: "We expect to see rapid progress in implementing the free trade plans within 2009. Thailand will become capable of providing far more sophisticated logistics services to ASEAN members. In order to build the momentum for more active ASEAN markets, we will encourage the private sector to get invloved. With this in place, we expect to see Thailand's intra-ASEAN trade growing at a rate of at least 10-20% annually"
Monday, August 24, 2009
NECTEC G-BOX CHECKS DRIVERS AND DELIVERIES
Device monitors position, speed, status, allows voice contact
The National Electronics and Computer Technology Centre (Nectec) has developed a computer-based system to maintain real-time surveillance over the behaviour of transport drivers and remotely monitor the progress of deliveries by road.
The system is called the G-Box, having been developed as a driving assistance system in the centre's so-called Generic Box Project. Nectec, which developed the G-Box as a means of minimising transport risks to businesses, expects the technology to be ready for commercial use in the near future.
The director of Nectec's Intelligent Transport Systems Programme, Passakorn Pathombutr, said that the G-Box, which would be located in transport trailers, rather than in the prime mover or driving cabin, aimed to check the status of the trailer and its cargo from point of origin to destination. The technology is based on embedded systems and open-source software. The status of the trailer will be displayed constantly on a monitor screen in the computer centre of the company's head office.
The G-Box is integrated with a global positioning system (GPS) which provides both location and speed. The system will also report on the status of both the trailer and the engine control unit of the truck.
The system will also provide useful real-time information to the driver during the journey, such as warning of accidents or road construction on the road ahead so that the driver can avoid troublesome spots. These warnings will be delivered to the driver about 20 kilometres before the site of the problem.
The system will not only allow head-office administrators to check the status and location of the trailer and its load, but also to give the driver a verbal warning if the speed of the trailer exceeds speed limits set by the company or the law.
"We are concerned about both security and the confidence of drivers," Passakorn said. "The G-Box can also check and control the behaviour of drivers while they are on the road."
Nectec has installed prototype G-Boxes into two PTT truck-trailers hauling oil around the country. The next step is to transfer the technology to business partners so the G-Box will soon be available commercially to the public.
He said the centre planned to implement and bundle controller area network technology, speech- and voice-recognition technology into the G-Box in the future so that the box will provide a gateway for truck-trailer drivers to communicate with other vehicles. Moreover, users will be able to access the Internet on the move, from cars, trucks or buses on which the G-Boxes are installed.
Passakorn said the G-Box was also suitable for installation in school buses, taxis and passenger cars, to monitor driving economy or to oversee new drivers.
The National Electronics and Computer Technology Centre (Nectec) has developed a computer-based system to maintain real-time surveillance over the behaviour of transport drivers and remotely monitor the progress of deliveries by road.
The system is called the G-Box, having been developed as a driving assistance system in the centre's so-called Generic Box Project. Nectec, which developed the G-Box as a means of minimising transport risks to businesses, expects the technology to be ready for commercial use in the near future.
The director of Nectec's Intelligent Transport Systems Programme, Passakorn Pathombutr, said that the G-Box, which would be located in transport trailers, rather than in the prime mover or driving cabin, aimed to check the status of the trailer and its cargo from point of origin to destination. The technology is based on embedded systems and open-source software. The status of the trailer will be displayed constantly on a monitor screen in the computer centre of the company's head office.
The G-Box is integrated with a global positioning system (GPS) which provides both location and speed. The system will also report on the status of both the trailer and the engine control unit of the truck.
The system will also provide useful real-time information to the driver during the journey, such as warning of accidents or road construction on the road ahead so that the driver can avoid troublesome spots. These warnings will be delivered to the driver about 20 kilometres before the site of the problem.
The system will not only allow head-office administrators to check the status and location of the trailer and its load, but also to give the driver a verbal warning if the speed of the trailer exceeds speed limits set by the company or the law.
"We are concerned about both security and the confidence of drivers," Passakorn said. "The G-Box can also check and control the behaviour of drivers while they are on the road."
Nectec has installed prototype G-Boxes into two PTT truck-trailers hauling oil around the country. The next step is to transfer the technology to business partners so the G-Box will soon be available commercially to the public.
He said the centre planned to implement and bundle controller area network technology, speech- and voice-recognition technology into the G-Box in the future so that the box will provide a gateway for truck-trailer drivers to communicate with other vehicles. Moreover, users will be able to access the Internet on the move, from cars, trucks or buses on which the G-Boxes are installed.
Passakorn said the G-Box was also suitable for installation in school buses, taxis and passenger cars, to monitor driving economy or to oversee new drivers.
PUSH FOR PRIVATE INITIATIVE IN INLAND WATER TRANSPORT
The Transport Ministry will support private-sector efforts to boost the country's inland water-transport capacity as a means of lowering logistics costs.
Deputy Transport Minister Kuakul Danchaiwijit said the ministry was working with the Port Authority of Thailand (PAT), the Water Transport Department and the shipping industry to formulate specific support measures.
Speaking after visiting the CP Group's port and inland container depot (ICD) operation in Ayutthaya province, Kuakul said the volume of goods transported via inland waterways now accounted for only 5 per cent of the country's total cargo.
Earlier, the minister held a meeting of senior officials to promote inland water transport along the Chao Phya River, the Kingdom's longest, running from the North to the Central Plain.
Compared with road transport, inland water transport has long-term potential to help lower logistics costs in Thailand, which are relatively expensive due to high dependence on land transport.
Besides inland water transport, the government also wants to promote greater use of railways, which is more cost-effective than road transport.
Kuakul said the government would have to play the leading role in infrastructure development for inland water transport, in order to boost efficiency and cost-effectiveness.
There must also be more linkages between road-, water- and rail-transport facilities.
At present, only two of the country's five major rivers are partly used for water transport: the Chao Phya and the Pasak.
Acting PAT governor Sunida Skulratana said her agency and the CP Group's Ayutthaya port had been cooperating to provide a container-transport service from Klong Toei and Laem Chabang ports to destinations in the northern, northeastern and central regions.
"Inland water transport is cheaper for many types of cargo, because we can handle larger quantities. Fuel-efficiency is also better," said Sunida.
Meanwhile, the CP Group, a diversified conglomerate, has spent Bt1 billion to develop its Ayutthaya port and related ICD facility, located on 313 rai of land, so that it can handle up to 400,000 containers a year.
The port can handle up to five barges at a time, each one capable of carrying 60 containers.
Deputy Transport Minister Kuakul Danchaiwijit said the ministry was working with the Port Authority of Thailand (PAT), the Water Transport Department and the shipping industry to formulate specific support measures.
Speaking after visiting the CP Group's port and inland container depot (ICD) operation in Ayutthaya province, Kuakul said the volume of goods transported via inland waterways now accounted for only 5 per cent of the country's total cargo.
Earlier, the minister held a meeting of senior officials to promote inland water transport along the Chao Phya River, the Kingdom's longest, running from the North to the Central Plain.
Compared with road transport, inland water transport has long-term potential to help lower logistics costs in Thailand, which are relatively expensive due to high dependence on land transport.
Besides inland water transport, the government also wants to promote greater use of railways, which is more cost-effective than road transport.
Kuakul said the government would have to play the leading role in infrastructure development for inland water transport, in order to boost efficiency and cost-effectiveness.
There must also be more linkages between road-, water- and rail-transport facilities.
At present, only two of the country's five major rivers are partly used for water transport: the Chao Phya and the Pasak.
Acting PAT governor Sunida Skulratana said her agency and the CP Group's Ayutthaya port had been cooperating to provide a container-transport service from Klong Toei and Laem Chabang ports to destinations in the northern, northeastern and central regions.
"Inland water transport is cheaper for many types of cargo, because we can handle larger quantities. Fuel-efficiency is also better," said Sunida.
Meanwhile, the CP Group, a diversified conglomerate, has spent Bt1 billion to develop its Ayutthaya port and related ICD facility, located on 313 rai of land, so that it can handle up to 400,000 containers a year.
The port can handle up to five barges at a time, each one capable of carrying 60 containers.
Sunday, August 23, 2009
Rescuers find bones, ash of Chinese sailors
Malaysian police ended search and rescue efforts yesterday on a stricken Taiwanese oil tanker involved in a collision in the Malacca Strait after the burnt remains of all its missing crew were found.
The MT Formosa Product Brick tanker caught fire and was seriously damaged last week after a collision with a Greekmanaged bulk carrier in the narrow shipping lane. Burnt bone fragments of two of the nine missing Chinese sailors were found on Saturday.
"We have ended all search and rescue efforts as the remains of all nine Chinese crew members have been found," said Rizal Ramli, marine police chief in Port Dickson. The accident happened off Port Dickson in Negeri Sembilan state, south of Kuala Lumpur.
"We only found bones as the fire was so hot that most of the bodies were incinerated beyond recognition," Chief Ramli added.
The tanker was carrying naphtha, a flammable liquid mixture ofhydrocarbons distilled from petroleum,coal tar and natural gas.
The MT Formosa Product Brick tanker caught fire and was seriously damaged last week after a collision with a Greekmanaged bulk carrier in the narrow shipping lane. Burnt bone fragments of two of the nine missing Chinese sailors were found on Saturday.
"We have ended all search and rescue efforts as the remains of all nine Chinese crew members have been found," said Rizal Ramli, marine police chief in Port Dickson. The accident happened off Port Dickson in Negeri Sembilan state, south of Kuala Lumpur.
"We only found bones as the fire was so hot that most of the bodies were incinerated beyond recognition," Chief Ramli added.
The tanker was carrying naphtha, a flammable liquid mixture ofhydrocarbons distilled from petroleum,coal tar and natural gas.
2 cargo boats go down off Andaman coast
Two cargo boats have sunk during fierce storms in the Andaman Sea off Phangnga and Satun. There were no casualties.
Sixteen crewmen were rescued after their Thai-registered cargo ship went down in rough weather yesterday morning off the coast of Takua Pa district in Phangnga.
The naval rescue team from the 3rd Fleet sent boats to the scene.
The crew members - seven Thais,four Indonesians and five Burmese were rescued and admitted to the naval base hospital for examination.
They were later released.A preliminary investigation found the ship,Chart 1 , captained byanIndonesian, was transporting 1,200 teak logs from Burma to Vietnam.
The wooden boat struggled with the stormy weather and sank after water flowed into the engine room.
Further south in Satun, another Thairegistered boat carrying seafood to the northern Malaysian state of Perlis sank shortly after it left Tamalung port in Muang district yesterday afternoon.
Two crews and two passengers, who were not identified, were plucked from the water by marine police.
The passengers had hired the boat to deliver the seafood but it capsized in heavy rain and gusty winds near Puyu Cape.
Sixteen crewmen were rescued after their Thai-registered cargo ship went down in rough weather yesterday morning off the coast of Takua Pa district in Phangnga.
The naval rescue team from the 3rd Fleet sent boats to the scene.
The crew members - seven Thais,four Indonesians and five Burmese were rescued and admitted to the naval base hospital for examination.
They were later released.A preliminary investigation found the ship,Chart 1 , captained byanIndonesian, was transporting 1,200 teak logs from Burma to Vietnam.
The wooden boat struggled with the stormy weather and sank after water flowed into the engine room.
Further south in Satun, another Thairegistered boat carrying seafood to the northern Malaysian state of Perlis sank shortly after it left Tamalung port in Muang district yesterday afternoon.
Two crews and two passengers, who were not identified, were plucked from the water by marine police.
The passengers had hired the boat to deliver the seafood but it capsized in heavy rain and gusty winds near Puyu Cape.
lmprove competitiveness ahead of AEC, logistics providers told
The Commerce Ministry is asking Thai logistics providers to improve their competitiveness, in order to ensure business growth following service liberalisation under the Asean Economic Community.
Trade Negotiations Department director-general Nuntawan Sakuntanaga said the liberalisation of logistics, particularly air transport, would be opened further next year. Thai exporters should ensure they are efficient enough to compete with foreign players from other Asean countries.
The AEC will see a free flow of trade and investment by 2015 Asean will open the logistics sector wider for members starting next year. Other sectors to be further liberalised are healthcare, telecommunications and tourism.
Asean investors will be allowed to hold a maximum 70-per-cent stake in each of these types of service businesses within the grouping by 2015. They can own 49 per cent now, rising to 51 per cent next year.
However, the percentage of shareholding will also be subject to the internal foreign-business laws of each individual nation.
Logistics costs amount to 18 per cent of the Kingdom's gross domestic product: 8 per cent from transportation costs, 7 per cent from product weight, 2 per cent from operating costs and 1 per cent from warehouse costs.
However, liberalisation will not only improve Thai providers' competitiveness, but also help lower Thai exporters' costs, said Nuntawan.
To ensure local logistic providers can compete with foreign investors, they must act quickly to improve their efficiency and lower operating costs, Nuntawan said.
The government will design projects to help logistics providers develop their competitiveness. A special committee for logistics development has been set up and is chaired by Deputy Commerce Minister Alongkorn Ponlaboot, with improving competitiveness a major goal.
Investors from Japan, the United States, Singapore, Australia, Germany and China have to date owned many logistics and related businesses in the Kingdom. These include port services for international trading, packaging services, third-party logistics and express delivery service.
Only regular mail services are reserved for Thais under the country's postal laws.
Trade Negotiations Department director-general Nuntawan Sakuntanaga said the liberalisation of logistics, particularly air transport, would be opened further next year. Thai exporters should ensure they are efficient enough to compete with foreign players from other Asean countries.
The AEC will see a free flow of trade and investment by 2015 Asean will open the logistics sector wider for members starting next year. Other sectors to be further liberalised are healthcare, telecommunications and tourism.
Asean investors will be allowed to hold a maximum 70-per-cent stake in each of these types of service businesses within the grouping by 2015. They can own 49 per cent now, rising to 51 per cent next year.
However, the percentage of shareholding will also be subject to the internal foreign-business laws of each individual nation.
Logistics costs amount to 18 per cent of the Kingdom's gross domestic product: 8 per cent from transportation costs, 7 per cent from product weight, 2 per cent from operating costs and 1 per cent from warehouse costs.
However, liberalisation will not only improve Thai providers' competitiveness, but also help lower Thai exporters' costs, said Nuntawan.
To ensure local logistic providers can compete with foreign investors, they must act quickly to improve their efficiency and lower operating costs, Nuntawan said.
The government will design projects to help logistics providers develop their competitiveness. A special committee for logistics development has been set up and is chaired by Deputy Commerce Minister Alongkorn Ponlaboot, with improving competitiveness a major goal.
Investors from Japan, the United States, Singapore, Australia, Germany and China have to date owned many logistics and related businesses in the Kingdom. These include port services for international trading, packaging services, third-party logistics and express delivery service.
Only regular mail services are reserved for Thais under the country's postal laws.
ETERNITY JOINS HANDS WITH REGIONAL GROUP
Eternity Grand Logistics has joined the recently established ARE group to expand its new door-to-door delivery service to the Asean market to compete against giant multinational rivals.
"We position the ARE services as a competitive model, translating into 'lower' prices than our rivals." Poonsak Thiapairat, managing director of the locally owned company, said recently.
The move is part of the firm's revised strategic plan to focus on its core business, ground logistics services, rather than on diversification, he told The Nation.
ARE, which stands for Asia Road Express, was established by four logistics firms two months ago to provide door-to-door delivery services by road in Asean, where international firms like TNT, DHL and Kerry Logistics are big players.
ARE's range already covers Indonesia, Malaysia, Singapore Vietnam and Thailand and would expand to Cambodia, Burma and South China.
It would start the Bangkok-Vientiane, Bangkok-Hanoi, Bangkok-Ho Chi Minh routes next month. Bangkok-Cambodia would follow by year-end.
The minimum shipment is 200 kilograms. Less-than-containerload service is available.
As Eternity Grand Logistics is responsible for ARE's management, the company is also an authorised agent that can sell services under the ARE brand.
"We don't have any stake in ARE as wejoined hands with it for only the purpose of business cooperation," Poonsak said.
Doing business with ARE would help the company strengthen its network especially in Indochina, he said.
Eternity Grand Logistics is a medium-sized company listed on the Market for Alternative Investment. Its books were not as pretty as expected after diversifying via a joint venture into coal trading a few years ago.
The company posted a huge profit drop of 98 per cent on year to Bt230,000 in the first quarter, due partly to a coal inventory burden, besides the shrinkage in demand for shipments in the wake of the economic crisis. Revenue also saw a 34.77-per-cent drop on year to Bt210.19 million in the first quarter.
"Now we're repositioning ourselves by focusing on only our core logistics and related services after making an exit from the coal trading business three months ago," Poonsak said
As the company has no experience in coal trading, it could not generate income well, he said.
The company would employ its imported coal storage and distribution centre on 100 rai of land in Nakhon Laung, ayutthaya, to provide coal warehousing and distributing services to energy firms such as Unique Mining Services, Asia Green and Banpu.
The company's first-half sales of Bt466.35 million were substantially behind its target of Bt1.2 billion for this full-year.
"Anyway, we still keep our sales target with no revision," he said. Firsthalf net profit was Bt2.89 million, down from Bt48.58 million last year.
To boost sales in this half, the company would extend its capability to provide multi-modal transport services using road and rail, with the focus on import and export shipments.
The company is now doing trials for shipments in the automobile, food and agricultural industries and expects to launch full services this year. It will also expand into new markets with potential for growth such as oil and ethanol, as there is still demand.
"We position the ARE services as a competitive model, translating into 'lower' prices than our rivals." Poonsak Thiapairat, managing director of the locally owned company, said recently.
The move is part of the firm's revised strategic plan to focus on its core business, ground logistics services, rather than on diversification, he told The Nation.
ARE, which stands for Asia Road Express, was established by four logistics firms two months ago to provide door-to-door delivery services by road in Asean, where international firms like TNT, DHL and Kerry Logistics are big players.
ARE's range already covers Indonesia, Malaysia, Singapore Vietnam and Thailand and would expand to Cambodia, Burma and South China.
It would start the Bangkok-Vientiane, Bangkok-Hanoi, Bangkok-Ho Chi Minh routes next month. Bangkok-Cambodia would follow by year-end.
The minimum shipment is 200 kilograms. Less-than-containerload service is available.
As Eternity Grand Logistics is responsible for ARE's management, the company is also an authorised agent that can sell services under the ARE brand.
"We don't have any stake in ARE as wejoined hands with it for only the purpose of business cooperation," Poonsak said.
Doing business with ARE would help the company strengthen its network especially in Indochina, he said.
Eternity Grand Logistics is a medium-sized company listed on the Market for Alternative Investment. Its books were not as pretty as expected after diversifying via a joint venture into coal trading a few years ago.
The company posted a huge profit drop of 98 per cent on year to Bt230,000 in the first quarter, due partly to a coal inventory burden, besides the shrinkage in demand for shipments in the wake of the economic crisis. Revenue also saw a 34.77-per-cent drop on year to Bt210.19 million in the first quarter.
"Now we're repositioning ourselves by focusing on only our core logistics and related services after making an exit from the coal trading business three months ago," Poonsak said
As the company has no experience in coal trading, it could not generate income well, he said.
The company would employ its imported coal storage and distribution centre on 100 rai of land in Nakhon Laung, ayutthaya, to provide coal warehousing and distributing services to energy firms such as Unique Mining Services, Asia Green and Banpu.
The company's first-half sales of Bt466.35 million were substantially behind its target of Bt1.2 billion for this full-year.
"Anyway, we still keep our sales target with no revision," he said. Firsthalf net profit was Bt2.89 million, down from Bt48.58 million last year.
To boost sales in this half, the company would extend its capability to provide multi-modal transport services using road and rail, with the focus on import and export shipments.
The company is now doing trials for shipments in the automobile, food and agricultural industries and expects to launch full services this year. It will also expand into new markets with potential for growth such as oil and ethanol, as there is still demand.
Worst is over, local operators believe
Thailand's logistics business is expected to lose 25% in value this year from 700 billion baht in 2008 but local operators are upbeat about the outlook going forward, saying shipment volumes have rebounded significantly over the past three months.
Outbound marine shipments slid by 10% from May to July compared to the same period of last year, said Suwit Ratanachinda. president of the Thai International Freight Forwarders Association.
The latest figure showed an improvement from the year-on-year contraction of 25-30% seen in the first four months,thanks to the rebounding world economy, Mr Suwit said.
Marine transport accounts for 90%of Thailand's export shipments, which were still down 26% on a yearly basis in July, according to the Commerce Ministry.
"We have seen outbound shipments of electronic components and automobiles but not that much, while those of agricultural products and consumer goods have bounced back sharply," Mr Suwit said.
"We are hoping that outbound volume could turn positive year-on-year in the last two months as long as nothing unexpected happens."
However, the figure for all of 2009 would still be down 25% due to a sharp decline in the early part of the year, he said.
Tanit Sorat, chairman of the Feder-ation of Thai Industries'(FTI) logistics industry club, shared the same view,citing an expected gradual local economic recovery.
Thailand's gross domestic product is estimated to have contracted by no more than 4% in the second quarter, with a contraction of 3% forecast in the third quarter before resuming the growth of 2.5% in the final quarter, based on forecasts by the National Economic and Social Development Board (NESDB).
The NESDB is scheduled to release official second-quarter GDP figures today.
However, Mr Tanit said rising oil prices, now back above $70 per barrel and with a forecast to top $80 by yearend, could threaten the logistics industry's prospects and the economy in general."We need to make sure that smallscale operators could have access to low-interest rate loans; thus they can withstand the financial difficulties and not be forced out of business," he said.
Both Mr Suvit and Mr Tanit also agreed that local logistics operators have to be better protected when the sector is liberalised under the Asean Free Trade Area framework. Starting next year, logistics operators from other Southeast Asian countries would be allowed to hold majority stakes of 51% in Thai companies.
The Asean shareholding would be lifted to 70% three years later.
Mr Suwit said his organisation was working with the Commerce Ministry on measures to help strengthen the industry to cope with intensified competition after liberalisation.
Outbound marine shipments slid by 10% from May to July compared to the same period of last year, said Suwit Ratanachinda. president of the Thai International Freight Forwarders Association.
The latest figure showed an improvement from the year-on-year contraction of 25-30% seen in the first four months,thanks to the rebounding world economy, Mr Suwit said.
Marine transport accounts for 90%of Thailand's export shipments, which were still down 26% on a yearly basis in July, according to the Commerce Ministry.
"We have seen outbound shipments of electronic components and automobiles but not that much, while those of agricultural products and consumer goods have bounced back sharply," Mr Suwit said.
"We are hoping that outbound volume could turn positive year-on-year in the last two months as long as nothing unexpected happens."
However, the figure for all of 2009 would still be down 25% due to a sharp decline in the early part of the year, he said.
Tanit Sorat, chairman of the Feder-ation of Thai Industries'(FTI) logistics industry club, shared the same view,citing an expected gradual local economic recovery.
Thailand's gross domestic product is estimated to have contracted by no more than 4% in the second quarter, with a contraction of 3% forecast in the third quarter before resuming the growth of 2.5% in the final quarter, based on forecasts by the National Economic and Social Development Board (NESDB).
The NESDB is scheduled to release official second-quarter GDP figures today.
However, Mr Tanit said rising oil prices, now back above $70 per barrel and with a forecast to top $80 by yearend, could threaten the logistics industry's prospects and the economy in general."We need to make sure that smallscale operators could have access to low-interest rate loans; thus they can withstand the financial difficulties and not be forced out of business," he said.
Both Mr Suvit and Mr Tanit also agreed that local logistics operators have to be better protected when the sector is liberalised under the Asean Free Trade Area framework. Starting next year, logistics operators from other Southeast Asian countries would be allowed to hold majority stakes of 51% in Thai companies.
The Asean shareholding would be lifted to 70% three years later.
Mr Suwit said his organisation was working with the Commerce Ministry on measures to help strengthen the industry to cope with intensified competition after liberalisation.
DOUBTS CAST ON RUSSIA'S "RESCUE" OF "ARCTIC SEA"
Moscow's contradictions and evasions provoke speculation that a 'hijacked' ship was carrying a secret cargo By Shaun Walker
The ship has been found, the crew has been saved, and the pirates have been arrested. But the mystery surrounding the Malteseregistered and Russian-crewed Arctic Sea is, if anything, deeper than ever.
The Russian navy arrested eight men last Tuesday for what may be the first case of piracy in European waters since the 17th century. The Russian Defence Minister, Anatoly Serdyukov, said that the group - citizens of Russia, Estonia and Latvia - had hijacked the ship off Sweden in July, and forced it to sail to Africa.
But experts have expressed doubt over Moscow's explanation. And last Wednesday the Malta Maritime Authority finally admitted what has been suspected for several days that the ship "had never really disappeared".
"The movements of the Arctic Sea were always known for several days, notwithstanding reports that the ship had disappeared,"the authority was quoted as saying."There was consensus among the investigating authorities ... not to disclose any sensitive information [so as] not to jeopardise the life and safety of the persons on board and the integrity of the ship."
It was an "explanation" that left behind almost as many unanswered questions as before. The methods and motivations of the hijackers remain unclear, and rumours that the ship had a secret cargo persist.
The Arctic Sea departed from Finland with a cargo of timber on July 21. Three days later,the crew were reportedly attacked in the Baltic by masked men masquerading as Swedish drugs police, speaking English with an accent,who tied them up, beat them and questioned them about drugs.
It is allegedly these men who have been arrested for hijacking the ship, although it had earlier been reported that the men left the Arctic Sea after 12 hours on board. It is also unclear why Russian, Latvian and Estonian hijackers would speak to the Russian crew in English.
The last radio contact from the ship came on July 28, after it passed through shipping
anes between Britain and France and sailed out into the Atlantic. The ship was due to arrive in the Algerian port of Bejaia on August 4 to unload its timber cargo worth just over ฃ1 million (about 56 million baht).
It never arrived. It wasn't until eight days ater, however, on August 12, that Russian President Dmitry Medvedev ordered the military to take "all necessary measures" to search for the ship. After a series of strange and contradictory sightings and denials, it was announced last Monday afternoon that the Russian navy had rescued the ship 12 hours before. The Arctic Sea was 300 miles off Cape Verde, thousands of miles from its original destination.
So far there has been no inkling of who the hijackers are or what their motive may have been. Only their nationalities are known.Russian officials said questioning of the men was continuing aboard the Ladny , the Russian vessel that carried out the "rescue mission".Some analysts suggest that the disinformation admitted by the Maltese might be happening again. Conspiracy theorists in Russia even speculate that Russian authorities knew all along where the ship - with a possible secret cargo - was located, and only had to "rescue"it and come up with a cover story when the world's attention became focused on the vessel.
One outstanding mystery is why, if the ship was hijacked on July 24, none of the crew was able to get the word out before contact was lost a few days later."The vessel had all the necessary modern means of communication and emergency alarms, and was located in waters where ordinary mobile telephones work," said Mikhail Voitenko, editor of the Russian maritime journal Sovfrakht ."To hijack the vessel so that no one makes a peep - can you imagine how that could be?I can't."
Mr Voitenko is one of the few commentators who have provided a trickle of information about the ship. He and other Russian experts have aired suspicions that the 98-metre freighter was carrying an undeclared cargo and that high-level state interests were involved, but so far nobody has been able to provide details. Rumours have abounded of an illegal cargo of drugs, weapons, or even nuclear material.
What is known is that the Arctic Sea was docked for repairs in Kaliningrad before beginning its journey to Finland to pick up its cargo of timber. Kaliningrad is a Russian enclave between Poland and Lithuania which is the base of the Russian Baltic Fleet and a notorious black spot for smuggling.
Mr Voitenko said he would comment no further and posted an emotional statement on his website."Thank God that it has all ended well. The crew is alive. I will say at once that I think it was right to draw attention to the situation surrounding the Arctic Sea ,"he wrote."I can't say for certain, but nevertheless suspect that there was a serious risk of the crew dying without attention being brought to this unique case. I can't say anything about the roots of this story and I don't plan to dig further ... I need to think about my own skin too. Understand that as you will."The Independent
PHOTOS: EPA AND AFP
STILL UNANSWERED: QUESTIONS ABOUT THE ARCTIC SEA
Why did it take so long for the Russian authorities to respond?
Concerns had been raised in Finland and Sweden by July 30 about the ship. By August 3 the mystery of its hijacking in Swedish waters had been raised in Lloyd's List. It was almost another week before the Russian authorities announced they were sending warships to search for the cargo vessel.
Why did the crew tell Solchart,the company managing the vessel, that they had been hijacked but that the ordeal was over?
According to Solchart, the crew was back in control of the vessel after 12 hours and continuing to Algeria.Those communications brought the realisation that a hijacking had occurred. Piracy was, until the Arctic Sea , non-existent in European waters, so any report of such activity was bound to get public attention. It was believed to be the first hijacking in Swedish waters since the 17th century. The vessel passed through the English Channel.
Why did it take so long for the alarm to be raised?
It is thought to have been three days before Solchart was informed of the Swedish hijack and in European waters an absence of contact for a day would cause concern. It was claimed that radio equipment had been damaged, but the crew are thought to have had their own mobile telephones which should have worked while the ship was close to the Swedish coast.
Why, shortly after The Independent brought the disappearance to worldwide attention, did Russian President Dmitry Medvedev order the navy to take "all necessary measures" to find the vessel?
The obvious answer is that the Kremlin wanted to do all it could to protect its nationals, the crew, but doubters suggest the president was worried about the fate of what the ship was carrying.
Was the ship carrying a secret cargo?
An illicit cargo might explain the hijackers' interest in the vessel the officially listed cargo of timber worth ฃ1 million was regarded as a most unlikely target for an armed gang. Arms, drugs and nuclear equipment have all been suggested as likely secret cargos.It has also been suggested that the boat was seized in a commercial dispute.
Why did the hijackers wait so long before, reportedly,demanding a ransom?
It was only at the weekend that the first demands were said to have been made. It could be that an earlier ransom demand has been kept secret.
Were the eight men captured by the Russian warship the same who had carried out the hijack on July 24?
It was suggested last week by the European Commission that the vessel was hijacked twice, once off Sweden and again off Portugal.Under normal circumstances this would be considered unlikely, but many of the circumstances surrounding the ship have resembled a fictional thriller in the past four weeks.
What did the hijackers say to the Swedish police?
The Swedish authorities are thought to have spoken to the hijackers at least twice, though not necessarily knowingly. On the first occasion, either using radio or the ship's satellite phone, they presumably thought they were speaking to a crew member and agreed because it was already beyond Swedish waters to wait to interview them on the vessel's planned return in August. The Swedish police communicated with the vessel last week but refused to divulge details of the conversation, or even to say if they considered the ship to be under the control of pirates.
The ship has been found, the crew has been saved, and the pirates have been arrested. But the mystery surrounding the Malteseregistered and Russian-crewed Arctic Sea is, if anything, deeper than ever.
The Russian navy arrested eight men last Tuesday for what may be the first case of piracy in European waters since the 17th century. The Russian Defence Minister, Anatoly Serdyukov, said that the group - citizens of Russia, Estonia and Latvia - had hijacked the ship off Sweden in July, and forced it to sail to Africa.
But experts have expressed doubt over Moscow's explanation. And last Wednesday the Malta Maritime Authority finally admitted what has been suspected for several days that the ship "had never really disappeared".
"The movements of the Arctic Sea were always known for several days, notwithstanding reports that the ship had disappeared,"the authority was quoted as saying."There was consensus among the investigating authorities ... not to disclose any sensitive information [so as] not to jeopardise the life and safety of the persons on board and the integrity of the ship."
It was an "explanation" that left behind almost as many unanswered questions as before. The methods and motivations of the hijackers remain unclear, and rumours that the ship had a secret cargo persist.
The Arctic Sea departed from Finland with a cargo of timber on July 21. Three days later,the crew were reportedly attacked in the Baltic by masked men masquerading as Swedish drugs police, speaking English with an accent,who tied them up, beat them and questioned them about drugs.
It is allegedly these men who have been arrested for hijacking the ship, although it had earlier been reported that the men left the Arctic Sea after 12 hours on board. It is also unclear why Russian, Latvian and Estonian hijackers would speak to the Russian crew in English.
The last radio contact from the ship came on July 28, after it passed through shipping
anes between Britain and France and sailed out into the Atlantic. The ship was due to arrive in the Algerian port of Bejaia on August 4 to unload its timber cargo worth just over ฃ1 million (about 56 million baht).
It never arrived. It wasn't until eight days ater, however, on August 12, that Russian President Dmitry Medvedev ordered the military to take "all necessary measures" to search for the ship. After a series of strange and contradictory sightings and denials, it was announced last Monday afternoon that the Russian navy had rescued the ship 12 hours before. The Arctic Sea was 300 miles off Cape Verde, thousands of miles from its original destination.
So far there has been no inkling of who the hijackers are or what their motive may have been. Only their nationalities are known.Russian officials said questioning of the men was continuing aboard the Ladny , the Russian vessel that carried out the "rescue mission".Some analysts suggest that the disinformation admitted by the Maltese might be happening again. Conspiracy theorists in Russia even speculate that Russian authorities knew all along where the ship - with a possible secret cargo - was located, and only had to "rescue"it and come up with a cover story when the world's attention became focused on the vessel.
One outstanding mystery is why, if the ship was hijacked on July 24, none of the crew was able to get the word out before contact was lost a few days later."The vessel had all the necessary modern means of communication and emergency alarms, and was located in waters where ordinary mobile telephones work," said Mikhail Voitenko, editor of the Russian maritime journal Sovfrakht ."To hijack the vessel so that no one makes a peep - can you imagine how that could be?I can't."
Mr Voitenko is one of the few commentators who have provided a trickle of information about the ship. He and other Russian experts have aired suspicions that the 98-metre freighter was carrying an undeclared cargo and that high-level state interests were involved, but so far nobody has been able to provide details. Rumours have abounded of an illegal cargo of drugs, weapons, or even nuclear material.
What is known is that the Arctic Sea was docked for repairs in Kaliningrad before beginning its journey to Finland to pick up its cargo of timber. Kaliningrad is a Russian enclave between Poland and Lithuania which is the base of the Russian Baltic Fleet and a notorious black spot for smuggling.
Mr Voitenko said he would comment no further and posted an emotional statement on his website."Thank God that it has all ended well. The crew is alive. I will say at once that I think it was right to draw attention to the situation surrounding the Arctic Sea ,"he wrote."I can't say for certain, but nevertheless suspect that there was a serious risk of the crew dying without attention being brought to this unique case. I can't say anything about the roots of this story and I don't plan to dig further ... I need to think about my own skin too. Understand that as you will."The Independent
PHOTOS: EPA AND AFP
STILL UNANSWERED: QUESTIONS ABOUT THE ARCTIC SEA
Why did it take so long for the Russian authorities to respond?
Concerns had been raised in Finland and Sweden by July 30 about the ship. By August 3 the mystery of its hijacking in Swedish waters had been raised in Lloyd's List. It was almost another week before the Russian authorities announced they were sending warships to search for the cargo vessel.
Why did the crew tell Solchart,the company managing the vessel, that they had been hijacked but that the ordeal was over?
According to Solchart, the crew was back in control of the vessel after 12 hours and continuing to Algeria.Those communications brought the realisation that a hijacking had occurred. Piracy was, until the Arctic Sea , non-existent in European waters, so any report of such activity was bound to get public attention. It was believed to be the first hijacking in Swedish waters since the 17th century. The vessel passed through the English Channel.
Why did it take so long for the alarm to be raised?
It is thought to have been three days before Solchart was informed of the Swedish hijack and in European waters an absence of contact for a day would cause concern. It was claimed that radio equipment had been damaged, but the crew are thought to have had their own mobile telephones which should have worked while the ship was close to the Swedish coast.
Why, shortly after The Independent brought the disappearance to worldwide attention, did Russian President Dmitry Medvedev order the navy to take "all necessary measures" to find the vessel?
The obvious answer is that the Kremlin wanted to do all it could to protect its nationals, the crew, but doubters suggest the president was worried about the fate of what the ship was carrying.
Was the ship carrying a secret cargo?
An illicit cargo might explain the hijackers' interest in the vessel the officially listed cargo of timber worth ฃ1 million was regarded as a most unlikely target for an armed gang. Arms, drugs and nuclear equipment have all been suggested as likely secret cargos.It has also been suggested that the boat was seized in a commercial dispute.
Why did the hijackers wait so long before, reportedly,demanding a ransom?
It was only at the weekend that the first demands were said to have been made. It could be that an earlier ransom demand has been kept secret.
Were the eight men captured by the Russian warship the same who had carried out the hijack on July 24?
It was suggested last week by the European Commission that the vessel was hijacked twice, once off Sweden and again off Portugal.Under normal circumstances this would be considered unlikely, but many of the circumstances surrounding the ship have resembled a fictional thriller in the past four weeks.
What did the hijackers say to the Swedish police?
The Swedish authorities are thought to have spoken to the hijackers at least twice, though not necessarily knowingly. On the first occasion, either using radio or the ship's satellite phone, they presumably thought they were speaking to a crew member and agreed because it was already beyond Swedish waters to wait to interview them on the vessel's planned return in August. The Swedish police communicated with the vessel last week but refused to divulge details of the conversation, or even to say if they considered the ship to be under the control of pirates.
AS LOAD FALLS, JAL SEEKS MERGER WITH CARGO RIVAL
Japan Airlines yesterday announced that it aimed to merge its freight business with that of rival Nippon Cargo Airlines in response to a sharp drop in demand during the economic downturn.
JAL, which lost US$1 billion (Bt34 billion) in the three months to June, said it had agreed to start negotiations with Nippon Yusen Kaisha, which owns the rival cargo firm, with a view to joining forces by April 1, 2010.
"Following the collapse of the economy in the United States last autumn, the financial crisis that spread worldwide caused demand for air cargo transport to fall drastically and market situations to worsen," JAL said.
A merger of the two largest cargo operators in Japan should enable them to make a profit, JAL said.
The two airlines have already started code-sharing for cargo flights.
"Further consolidation is expected to bring about more benefits such as allowing both companies to significantly reduce cost and to fortify their technical expertise," JAL said in a statement.
JAL, Asia's biggest carrier, earlier this month announced drastic cuts to its flight services as it braces for a second staright year in the red.
JAL, which lost US$1 billion (Bt34 billion) in the three months to June, said it had agreed to start negotiations with Nippon Yusen Kaisha, which owns the rival cargo firm, with a view to joining forces by April 1, 2010.
"Following the collapse of the economy in the United States last autumn, the financial crisis that spread worldwide caused demand for air cargo transport to fall drastically and market situations to worsen," JAL said.
A merger of the two largest cargo operators in Japan should enable them to make a profit, JAL said.
The two airlines have already started code-sharing for cargo flights.
"Further consolidation is expected to bring about more benefits such as allowing both companies to significantly reduce cost and to fortify their technical expertise," JAL said in a statement.
JAL, Asia's biggest carrier, earlier this month announced drastic cuts to its flight services as it braces for a second staright year in the red.
Friday, August 21, 2009
Air cargo firms eye merger
Japan Airlines Corp said it would start talks to merge its ailing cargo business with a unit of shipping firm Nippon Yusen as the airline looks to return to profit with the help of statebacked funds.
JAL, Asia's largest airline by revenue,secured a deal in June to borrow 100 billion yen ($1.1 billion) from two statebacked lenders and three commercial banks and is now restructuring under state supervision.
The company has already announced plans to cut domestic and international flights, but is under pressure to come up with more drastic cost-saving measures as it heads for its second-straight annual loss in the year to March 2010.
JAL and Nippon Yusen said they would begin talks towards a potential merger of their cargo businesses in April, building on a code-sharing alliance between the two firms under which they mutually use each others networks to sell and transport cargo.
"The air cargo business has been one of the hardest hit industries by the re-cession from last year," Hitoshi Oshika,corporate officer of Nippon Yusen, said at the briefing.
The combination of JAL's cargo business with the Nippon Yusen unit, Nippon Cargo Airlines Co, would create a company with combined sales of about $3 billion and in control of roughly 30% of Japan's international air cargo market,JAL said.
Its global competitors would include FedEx Corp and UPS.
JAL reported a 50.9 billion yen operating loss for the year to March 2009 and has forecast a 59 billion yen loss for the current year, as it struggles to control costs and suffers along with other airlines due to a slump in global travel.
Nippon Yusen has been looking for ways to turn around its air cargo business,which booked an operating loss of 17.9 billion yen in the year to March 2009 on sales of 79.4 billion yen.
The shipping firm has implemented cost-cutting measures and replaced its fleet with more fuel-efficient cargo planes.
JAL, Asia's largest airline by revenue,secured a deal in June to borrow 100 billion yen ($1.1 billion) from two statebacked lenders and three commercial banks and is now restructuring under state supervision.
The company has already announced plans to cut domestic and international flights, but is under pressure to come up with more drastic cost-saving measures as it heads for its second-straight annual loss in the year to March 2010.
JAL and Nippon Yusen said they would begin talks towards a potential merger of their cargo businesses in April, building on a code-sharing alliance between the two firms under which they mutually use each others networks to sell and transport cargo.
"The air cargo business has been one of the hardest hit industries by the re-cession from last year," Hitoshi Oshika,corporate officer of Nippon Yusen, said at the briefing.
The combination of JAL's cargo business with the Nippon Yusen unit, Nippon Cargo Airlines Co, would create a company with combined sales of about $3 billion and in control of roughly 30% of Japan's international air cargo market,JAL said.
Its global competitors would include FedEx Corp and UPS.
JAL reported a 50.9 billion yen operating loss for the year to March 2009 and has forecast a 59 billion yen loss for the current year, as it struggles to control costs and suffers along with other airlines due to a slump in global travel.
Nippon Yusen has been looking for ways to turn around its air cargo business,which booked an operating loss of 17.9 billion yen in the year to March 2009 on sales of 79.4 billion yen.
The shipping firm has implemented cost-cutting measures and replaced its fleet with more fuel-efficient cargo planes.
Maersk sinks into the red in first half
The Danish shipping and oil group A.P. Moller-Maersk reported a deeper-than-expected first-half net loss as freight rates, volumes and oil prices fell and said second-half results would be similar.
The world's biggest container shipping group, a barometer for the health of global trade, swung to a net loss of 3.02 billion Danish crowns ($577 million) from a profit of 11.98 billion a year earlier,missing analysts' average estimate for a loss of 2.91 billion.
Even so, chief executive Nils Smedegaard Andersen did see some signs of improvement, with shipping volumes and rates starting to rise, though the shipping cycle would lag the global economic improvement.
"The global economy is moving into a better situation - we are expecting growth going forward and the worst to be behind us," Andersen told analysts in a conference call.
"Given deliveries (of vessels) in container shipping and tankers, it is likely that the shipping cycle will be somewhat slower in improving, but we are optimistic that the things that we are doing for the long term are right," he said.
Maersk, a conglomerate whose businesses range from shipping to retail,said in a statement:"The result for the second half of 2009 is expected to be at the same level as the first half-year."
The global economic crisis had a "severe negative impact" on the group's activities in the first half, said Maersk,whose container shipping fleet consisted of 501 vessels at the end of the first half.
Freight rates and volumes for the group's container shipping activities were 30% and 7%, respectively, below the levels seen in the same period of 2008,Maersk said.
Average rates for the tanker activities were considerably lower than in the first half of 2008, and the average price for Brent crude was 52% lower than a year ago.
"Freight rates continued to fall in the second quarter, from the record-low level in the first quarter, but the curve flattened towards the end of the period," Maersk said.
"The trend is now expected to reverse,with rate increases, albeit modest, in the third quarter of 2009," the company said.
"Average oil prices are expected to be higher in the second half than in the first half," it added.
Maersk operates the world's largest container shipping fleet, Maersk Line,and controls about 85% of Danish oil production in the North Sea, together with partners Royal Dutch Shell Plc and Chevron Corp.
The group's oil and gas production rose 8% in the first half to 81 million barrels of oil equivalents and 50 new wells began operating during the sixmonth period, Maersk said.
"Oil and gas output is expected to be a little lower in the second half of 2009 than in the first half, but full-year production is expected to be on a par with 2008," it said.
Revenues fell to 127.39 billion crowns in the first half year from 148.37 billion in the same period last year, in line with analysts' average forecast of 127.33 billion.
The world's biggest container shipping group, a barometer for the health of global trade, swung to a net loss of 3.02 billion Danish crowns ($577 million) from a profit of 11.98 billion a year earlier,missing analysts' average estimate for a loss of 2.91 billion.
Even so, chief executive Nils Smedegaard Andersen did see some signs of improvement, with shipping volumes and rates starting to rise, though the shipping cycle would lag the global economic improvement.
"The global economy is moving into a better situation - we are expecting growth going forward and the worst to be behind us," Andersen told analysts in a conference call.
"Given deliveries (of vessels) in container shipping and tankers, it is likely that the shipping cycle will be somewhat slower in improving, but we are optimistic that the things that we are doing for the long term are right," he said.
Maersk, a conglomerate whose businesses range from shipping to retail,said in a statement:"The result for the second half of 2009 is expected to be at the same level as the first half-year."
The global economic crisis had a "severe negative impact" on the group's activities in the first half, said Maersk,whose container shipping fleet consisted of 501 vessels at the end of the first half.
Freight rates and volumes for the group's container shipping activities were 30% and 7%, respectively, below the levels seen in the same period of 2008,Maersk said.
Average rates for the tanker activities were considerably lower than in the first half of 2008, and the average price for Brent crude was 52% lower than a year ago.
"Freight rates continued to fall in the second quarter, from the record-low level in the first quarter, but the curve flattened towards the end of the period," Maersk said.
"The trend is now expected to reverse,with rate increases, albeit modest, in the third quarter of 2009," the company said.
"Average oil prices are expected to be higher in the second half than in the first half," it added.
Maersk operates the world's largest container shipping fleet, Maersk Line,and controls about 85% of Danish oil production in the North Sea, together with partners Royal Dutch Shell Plc and Chevron Corp.
The group's oil and gas production rose 8% in the first half to 81 million barrels of oil equivalents and 50 new wells began operating during the sixmonth period, Maersk said.
"Oil and gas output is expected to be a little lower in the second half of 2009 than in the first half, but full-year production is expected to be on a par with 2008," it said.
Revenues fell to 127.39 billion crowns in the first half year from 148.37 billion in the same period last year, in line with analysts' average forecast of 127.33 billion.
Port project needs rethink
The Port Authority of Thailand has never kept secret the fact that it would like to see the land it owns put to more productive use than simply playing host to the capital's biggest slum community. Now it has gone a step further and drawn up a five-year plan to split the area into four prime commercial and office zones requiring an investment of at least 20 billion baht. But, admit the developers, some fine-tuning still needs to be done.
That is one way of putting it. Conflict resolution might be a better way because an abundance of such skills will be needed if there is to be a forced resettlement of the tens of thousands of people who live and work in the area. Then there is the certainty of a renewed showdown with the Klong Toey market vendors who are already incensed by the renovation efforts of a private concessionaire. That is a situation that should have been handled with a great deal more tact and diplomacy. Experience gained in the remodelling of other city markets should have taught the authorities that the velvet glove is more effective than the iron fist.
Klong Toey slum dwellers are used to threats of eviction. Although there has been a welcome upgrading in recent years, there are continual problems with regular water supplies, electricity and waste removal,sanitation, hygiene, child care, education, crime prevention and health services because they have no legal right to the land they occupy. They are not there out of choice. This has been going on for over 50 years and will continue until the Port Authority gives serious consideration to expanding low-cost housing on more of its ample land reserves to absorb the community.
Do that first and it will eventually pave the way for some of the big business developments it has in mind to improve the value of its assets. Right now its priorities are skewed. It is sheer folly to think it can turn the slum problem over to the Community Organisations Development Institute (CODI) and expect it to resettle so many people, probably far away from the area in which they work, in a relatively short space of time. Without proper planning and a suitable time frame, such an attempt would quickly come to grief. It would be reminiscent of the mass evictions and attempted resettlement of slum dwellers on the city's outskirts two to three decades ago. Those resettled could not find work deep in the suburbs or afford to spend hours in a long commute to their old jobs so they just abandoned their new locations and moved back to their old ones.
The underfunded CODI works through the respected Ban Mankong home-building and land-sharing projects to replace the slums and avoid forced relocations. But progress is slow. Its sister project is Ban Ua-arthorn which was initiated by the National Housing Authority and involves the private sector. These projects were touted as the solution to the shortage of affordable accommodation and, while there were some successes,Ban Ua-arthorn schemes gained notoriety as showpieces of corruption. This took the form of ill-fitting doors,roofs prone to blow away in the wind, holes and cracks in foundations, walls and ceilings, dangerous electrical outlets and all-round substandard construction. It can only be a matter of time before such low-quality, but not inexpensive, public housing projects revert to slums again, completing a vicious circle. Ban Mankong projects,on the other hand, are community-based, better organised and hold out real promise for the future.
Although the economic downturn caused migration patterns to slow and people to return home as factory jobs dried up, communities such as Klong Toey seem unaffected and likely to be with us for a long time yet.
That is one way of putting it. Conflict resolution might be a better way because an abundance of such skills will be needed if there is to be a forced resettlement of the tens of thousands of people who live and work in the area. Then there is the certainty of a renewed showdown with the Klong Toey market vendors who are already incensed by the renovation efforts of a private concessionaire. That is a situation that should have been handled with a great deal more tact and diplomacy. Experience gained in the remodelling of other city markets should have taught the authorities that the velvet glove is more effective than the iron fist.
Klong Toey slum dwellers are used to threats of eviction. Although there has been a welcome upgrading in recent years, there are continual problems with regular water supplies, electricity and waste removal,sanitation, hygiene, child care, education, crime prevention and health services because they have no legal right to the land they occupy. They are not there out of choice. This has been going on for over 50 years and will continue until the Port Authority gives serious consideration to expanding low-cost housing on more of its ample land reserves to absorb the community.
Do that first and it will eventually pave the way for some of the big business developments it has in mind to improve the value of its assets. Right now its priorities are skewed. It is sheer folly to think it can turn the slum problem over to the Community Organisations Development Institute (CODI) and expect it to resettle so many people, probably far away from the area in which they work, in a relatively short space of time. Without proper planning and a suitable time frame, such an attempt would quickly come to grief. It would be reminiscent of the mass evictions and attempted resettlement of slum dwellers on the city's outskirts two to three decades ago. Those resettled could not find work deep in the suburbs or afford to spend hours in a long commute to their old jobs so they just abandoned their new locations and moved back to their old ones.
The underfunded CODI works through the respected Ban Mankong home-building and land-sharing projects to replace the slums and avoid forced relocations. But progress is slow. Its sister project is Ban Ua-arthorn which was initiated by the National Housing Authority and involves the private sector. These projects were touted as the solution to the shortage of affordable accommodation and, while there were some successes,Ban Ua-arthorn schemes gained notoriety as showpieces of corruption. This took the form of ill-fitting doors,roofs prone to blow away in the wind, holes and cracks in foundations, walls and ceilings, dangerous electrical outlets and all-round substandard construction. It can only be a matter of time before such low-quality, but not inexpensive, public housing projects revert to slums again, completing a vicious circle. Ban Mankong projects,on the other hand, are community-based, better organised and hold out real promise for the future.
Although the economic downturn caused migration patterns to slow and people to return home as factory jobs dried up, communities such as Klong Toey seem unaffected and likely to be with us for a long time yet.
Arctic Sea crew, hijackers arrive in Moscow
The crew and suspected hijackers of the Arctic Sea cargo ship arrived in Russia yesterday after a maritime saga peppered with piracy and the hint of espionage.
Russian warships found the merchant ship in the Atlantic Ocean off the Cape Verde islands on Monday and Moscow said eight people - nationals of Estonia,Latvia and Russia - had been arrested for hijacking the vessel.
Ilyushin-76 military planes carrying 11 of the 15-member Russian crew and the men suspected of hijacking the Maltese-registered ship arrived at the Chkalovsky military airfield outside Moscow, local news agencies reported.
The suspected men were then taken under guard to Moscow's high-security Lefortovo prison.
Russia says the men had hijacked the ship on July 24 off the coast of Sweden and then threatened to blow it up if their ransom demands were not met.
After heading through the English Channel in late July, radio contact was apparently lost and the 4,000-ton ship did not deliver its cargo to the Algerian port of Bejaia on Aug 4.
Power plant tragedy
The death toll in a Russian power plant accident rose to 17 yesterday after three more bodies were found, and harrowing escape stories emerged from the few survivors.
Over 1,000 rescue workers searched the massive Sayano-Shushenskaya hydro-electric plant in southern Siberia for the 57 people who remain missing and are feared dead. Yesterday they pumped out the remaining water from the damaged engine room to try to find more bodies.
A powerful blast on Monday blew out walls and caused the power plant's turbine room to flood. Three of the plant's 10 turbines were destroyed.
Russian warships found the merchant ship in the Atlantic Ocean off the Cape Verde islands on Monday and Moscow said eight people - nationals of Estonia,Latvia and Russia - had been arrested for hijacking the vessel.
Ilyushin-76 military planes carrying 11 of the 15-member Russian crew and the men suspected of hijacking the Maltese-registered ship arrived at the Chkalovsky military airfield outside Moscow, local news agencies reported.
The suspected men were then taken under guard to Moscow's high-security Lefortovo prison.
Russia says the men had hijacked the ship on July 24 off the coast of Sweden and then threatened to blow it up if their ransom demands were not met.
After heading through the English Channel in late July, radio contact was apparently lost and the 4,000-ton ship did not deliver its cargo to the Algerian port of Bejaia on Aug 4.
Power plant tragedy
The death toll in a Russian power plant accident rose to 17 yesterday after three more bodies were found, and harrowing escape stories emerged from the few survivors.
Over 1,000 rescue workers searched the massive Sayano-Shushenskaya hydro-electric plant in southern Siberia for the 57 people who remain missing and are feared dead. Yesterday they pumped out the remaining water from the damaged engine room to try to find more bodies.
A powerful blast on Monday blew out walls and caused the power plant's turbine room to flood. Three of the plant's 10 turbines were destroyed.
Hijacked ship was "continuously tracked"
The Arctic Sea cargo ship "never disappeared" and was continuously tracked from its hijacking last month until the Russian navy said it had retaken the ship on Monday, the Malta Maritime Authority (MMA) said.
The ship's disappearance from radar after leaving a Finnish port on July 23 sparked an international search, but the MMA said "investigators always knew of the ship's whereabouts".
Swedish, Maltese and Finnish maritime authorities decided not to disclose any sensitive information "in order not to jeopardise the life and safety of the persons on board and the integrity of the ship", the MMA said. Russia said on Tuesday it had arrested eight men for hijacking the Arctic Sea after the Russian navy took control of the vessel at an undisclosed location believed to be off the west coast of Africa.
The official story is the Arctic Sea was sailing from Finland to Algeria with a crew of 15 and a cargo of timber worth 1.16 million (55.8 million baht).
The ship's disappearance from radar after leaving a Finnish port on July 23 sparked an international search, but the MMA said "investigators always knew of the ship's whereabouts".
Swedish, Maltese and Finnish maritime authorities decided not to disclose any sensitive information "in order not to jeopardise the life and safety of the persons on board and the integrity of the ship", the MMA said. Russia said on Tuesday it had arrested eight men for hijacking the Arctic Sea after the Russian navy took control of the vessel at an undisclosed location believed to be off the west coast of Africa.
The official story is the Arctic Sea was sailing from Finland to Algeria with a crew of 15 and a cargo of timber worth 1.16 million (55.8 million baht).
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