#ShippingReview – Over the last fortnight, Jehan Ashmore has reported on the shipping scene as outlined below.

Arklow View was launched without official ceremony at an inland Dutch yard, however the second cargoship out of 10 in a new series, will however be eventually named at Delfzijl on the Ems Estuary.

Milford Haven Port Authority’s three new pilot boats for the south Welsh port will be named ‘St Brides’, ‘St Govans’ and ‘St Davids’.The names follow a public competition.

A drifting cargoship on the way from Rotterdam to Ireland was rescued off Plymouth. The 130m Samskip Express was towed inshore and following engine repairs, she continued to Dublin Port.

#VesselValeVisits – Leadship of Arklow Shipping’s newest and only cargsoship currently in service out of 10 vessels ordered, Arklow Vale is understood to have made her maiden call to the island of Ireland, writes Jehan Ashmore.

The 2,999grt cargoship had berthed in the Port of Belfast from where she departed the Herdmand Channel yesterday. Later that day ASL’s ‘R’ class cargoship Arklow Ranger docked at the same part of the port's estate on the Co. Antrim side of the Northern Ireland capital. This also Dutch built cargoship launched from the yard of Bijlsma Lemmer in 2002, had arrived from Gijon in northern Spain.

Overnight the Arklow Vale built to a design from the yard of Royal Bodewes own 5,100dwt Trader Series, had sailed southbound through the Irish Sea. As of this morning the 87m long vessel exited St. Georges Channel into the Celtic Sea.

Arklow Vale is bound for Terneuzen, Netherlands to where despite her career which only begin last month, the cargoship had visited this port en-route to Ghent in Belgium while on a maiden voyage from Delfzijl.

The Dutch port on the Ems Estuary, provided a base for sea-trials and is likely to be the case for second sister, Arklow View.

Afloat reported yesterday that this latest newbuild launched from the inland yard of Royal Bodewes located near Groningen, is to be handed over at Delfzijl and be given a naming ceremony.

The roll-out of the ‘V’ class newbuilds will continue to provide ASL through its subsidiary Arklow Shipping B.V. Nederland, in the transportation of cargoes. Among the cargoes that the overall fleet of 45 ships in between them can carry are in the bulk grain trades, steel rails, minerals and containers.

#PortChristening - Arklow View a newbuild cargoship which was launched last week without official ceremony as previously explained on Afloat, will however be given the opportunity of a christening ceremony, writes Jehan Ashmore.

Royal Bodewes, the Dutch shipyard in Hoogezand, which has a further 8 newbuilds out of 10 cargoships on order for Arklow Shipping, announced they are to hold an official handing over of yard no. 722 with a naming ceremony but held in the port of Delfzijl.

The Dutch port is reached from the Bodewes yard by canal through Groningen and this is how the leadship, Arklow Vale with a tug arrived at Delfzijl during November.

It was from this port on the edge of the Ems Estuary on the German border, that the Bodewes 5,100dwt Trader Series Arklow Vale or ‘V’ class vessel entered saltwater for the first time. Likewise this is where her sister will follow in her wake.

The near 87m long leadship Arklow Vale had made a passage through the waterway to carry out trials off Eemshaven on the Wadden Sea which leads into the North Sea.

She later made her inaugural maiden voyage last month for the shipping companies Dutch subsidary, Arklow Shipping Nederland B.V.. This involved a coastal voyage to the Belgium port of Ghent to load her first cargo bound for northern Spain.

#ShippingReview – Over the last fortnight, Jehan Ashmore has reported on the shipping scene where among the stories are outlined below.

A well-known name in the Irish shipping industry, Burke Shipping, the marine agency and logistical services company changed name this month to become the Doyle Shipping Group (DSG).

In this year’s Northern Ireland Environmental Benchmarking Survey, Belfast Harbour achieved platinum status, the highest scoring level. The award was announced just before COP21 climate change began in Paris.

The Minister for Transport announced the postponement of signing the transfer of Port of Galway to Galway City Council for at least 18 months. The move was welcomed by Galway Chamber.

The Global Shippers’ Forum (GSF) has called on the shipping industry at COP21 to reach an agreement on a market-based measure for carbon reduction or risk having rules enforced.

Dublin Port Company will join UNCTAD/TrainForTrade programme in the juries to assess dissertation deliveries of 28 middle managers from Ghana Ports and Harbours Authority (GPHA).

2015 has been significant for Port of Cork Company. Trade traffic has been performing well as over €8 million tonnes of cargo moving in and out of the port to date.

Arklow View, second of 10 newbuilds cargoships ordered for Arklow Shipping is to be launched next week without an official christening ceremony so not to disrupt the yard’s busy workload.

#NoOfficial - Arklow View, second of 10 newbuilds ordered for Arklow Shipping’s Dutch division is due to be launched next week, albeit there will be no official christening ceremony, writes Jehan Ashmore.

According to Royal Bodewes, the yard in the Netherlands has decided that no launching ceremony will take place so not to disrupt the work carried out at the busy inland shipbuilding facility. The yard located in Hoogezand on the outskirts of Groningen, will during the launch be closed off to third parties.

Last month, the fore and aft sections of the newbuild which has a distinctive bow design to improve on fuel efficiency was joined to complete the 89m hull which has a hold capacity of 6258m3 / 221,000ft3.

In September, leadship of the Royal Bodewes 5,100dwt Trader (V-class) cargoship series, Arklow Vale was given a christening ceremony with guests in attendance. For a video, click here as she was slid sideways into an adjoining canal.

The change to launch proceedings, however will not stop the repeat method as Arklow View (yard number 722) will too be slid amidships to meet the water for the first time.

As previously reported, Arklow Vale, following sea trials, made her maiden voyage from Delfzijl to Ghent. 

Since then, it is understood that the 2,999 gross tonnes vessel made a first commercial passage from the Belgium port to reach Pasaia, in northern Spain on 22 November.

#NoTaxShipFuel – Throughout the world, no tax is paid on ship-fuel or aircraft despite those sectors’ huge emissions, reports Frank McDonald at the COP21 Paris conference for The Irish Times.

International aviation and shipping have rightly been dubbed “the elephants in the room” at COP21, and there is now a real danger they will escape yet again from any requirement to cut their prodigious – and growing – carbon emissions, just as they’ve done for the past 20 years.

Galway-born Andrew Murphy, aviation specialist with the Brussels-based Transport & Environment lobby group, said the UN’s objective of limiting global warming to between 1.5 and 2 degrees would be “impossible unless we reduce emissions from these sectors”.

Aviation is responsible for 3 per cent of global carbon emissions, while shipping accounts for almost 3 per cent. Combined, they have an impact equal to Britain and Germany and are continuing to grow rapidly – up to 270 per cent by 2050.

For a chart showing shipping and aviation: annual historical and projected emissions click here in addition to more details the newspaper reports.

#UrgentAction – The Global Shippers’ Forum (GSF) writes Lloyds Loading List, has called on the shipping industry at the COP21 climate change talks in Paris, to reach an agreement on a market-based measure for carbon reduction or risk having rules enforced.

The GSF has released a statement outlining its view on how the maritime sector should address the issue. It is “keen to avoid a patchwork approach of national CO2 targets, which would be complex to manage” and wants the shipping industry to be proactive in agreeing voluntary measures.

The EU is already proceeding with its own Monitoring, Verification and Reporting system in absence of an IMO agreement, the GSF noted. 

“Shippers are under increasing pressure to respond to the climate change challenge - they must understand, monitor and report their supply chain carbon footprint in order to meet their reporting and regulatory obligations, the GSF added. “However, they are dependent on the shipping industry to provide accurate data on emissions and the GSF believes urgent action is now needed to agree targets.”

Chris Welsh, secretary-general of the GSF, said: “All stakeholders agree that additional measures are needed to reduce CO2 emissions from the maritime sector. The debate now is how to get this done. We believe the International Maritime Organisation (IMO) should retain responsibility for this issue, given its strong track record, but more progress is needed on appropriate Market-Based Measures (MBM).

To read much more click here and for a copy of the GSF policy statement: CO2 Emissions from the Maritime Sector can be downloaded here.

#Shipping - A gigantic cargo ship nearly a third of a kilometre long has docked in Belfast for emergency repairs.

As the Belfast Telegraph reports, the Al Oraiq is the largest shipping vessel Belfast Lough has seen in almost three decades, only beaten in terms of sheer size by next-generation cruise liners like the Royal Princess, which visited the city just over a year ago.

The 300-plus-metre giant is expected to be docked in Harland & Wolff for a number of weeks of surveys and repairs. The Telegraph has more on the story HERE.

#MaritimeFinance - As shipping companies are increasingly being forced to seek alternative sources of finance, is Ireland’s asset leasing hub the solution?

Ireland’s strength as a global hub for asset leasing is examined by tax advisors KPMG and legal firm Dillon Eustace in a recent report commissioned by the Irish Maritime Development Office (IMDO).

The report looks at Ireland’s advantages as a location for maritime commerce and how the rules and regulations which have supported the development of Ireland’s aviation sector translate to the maritime sector.

Recent Government activity to bring attention to the sector, via the annual Ocean Wealth Conference, is gaining momentum as interest in Ireland as a destination for maritime business grows.

Trends in maritime finance

Changing trends in maritime finance have been widely remarked upon in the media, with traditional lenders pulling back and some pulling out all together. An equilibrium has been reached, wherein ‘the new normal’ – those shipping banks who are still providing senior debt – are focused only on Tier One borrowers, leaving a continued void for senior debt provision to Tier Two borrowers.

These shifts in the market have opened demand for new forms of financing and increasingly we have seen private equity leaping to bridge that gap.

Ireland, with its beneficial tax structures and extensive asset finance experience, is well positioned to become the home of the new generation of finance solutions to the shipping industry. Many existing operators in the asset financing sector, previously focussed solely on aviation, have already diversified their asset base to include manufacturing equipment, medical devices, rail stock and are increasingly looking to maritime assets.

While there are notable differences in the nature of the asset class, perhaps most notably the volatility of the value of the asset and its cyclical nature, the beneficial structures and treatment available are unchanged. The Irish Government aims to attract more of this business and facilitate the growth of a thriving maritime finance sector in Ireland.

After a period of initial research of the opportunities, the IMDO commissioned KPMG and Dillon Eustace to collaborate on a report which is available HERE.

The report looks at Ireland’s overall offering for foreign direct investment and how that underpins the future development of maritime commerce in Ireland. It also examines the legal and tax conditions which have made Ireland a global leader in aviation financing and how that translates on the maritime side.

It highlights specific business, economic and tax based advantages, such as Ireland’s 12.5% corporation tax rate, supported by a stable and certain tax environment, as well as one of the most beneficial tonnage tax regimes in Europe.

The report also examines some of the success which Ireland has had in other industries, and how Ireland’s readily available skilled labour force, as well as being an English speaking member of the Eurozone and of the EU has helped that growth.

Aviation roots

Ireland has strong historic links with aviation and has established itself as a global hub for the aviation industry; it is the jurisdiction of choice for aviation finance and particularly for aircraft lease securitisation.

During the 1980s, Guinness Peat Aviation (GPA), based in Co Clare, became the world's largest commercial aircraft lessor. “The pool of expertise that emerged from GPA went on to establish Ireland as the world’s leading aviation leasing jurisdiction, with GPA’s legacy directors and staff going on to found what have become some of the biggest aircraft lessors in the world," says Jim Healy, director of shipping tax services with KPMG Ireland. "Indeed most significant transactions in the sector have involved Irish leasing companies. The industry looks set to grow further, with very large orders being placed by Irish lessors.”

Half of the top 50 leasing companies in the world are based in Ireland and more than half of the world’s leased aircraft are managed from here. It is this ready availability of the world’s leading experts in asset financing and securitisation, as well as the support structures in place which are the foundations of Ireland’s ambitions to create a global hub for maritime commerce.

Ireland is a leading issuer location for securitisation, a favoured location for asset ownership and the largest hedge fund domicile in Europe. Nearly €4 trillion assets are currently under administration in Ireland, according to the latest figures released by the Central Bank of Ireland and Irish Funds Industry Association. There are over 6,000 Irish domiciled funds alone and 36,000 finance professionals working in Dublin’s IFSC.

“Ireland has grown to be one of the world’s leading financial services centres,” says Lorcan Tiernan, partner in Dillon Eustace. “Irish professional advisors have been at the cutting edge of the most complex financial structures for many years and bring a broad range of transactional skills to the area of finance. As a group we comfortably navigate the most complex deals and offer innovative solutions across industries and all of these skills can and are being brought to bear in the area of maritime commerce.”

Demand-led developments

The IMDO carried out a programme of engagement in Asia in September, sponsoring the Marine Money conference in Singapore and launching the ‘Ship Finance: Opportunities for the International Shipping Industry’ report at a complementary event.

There was high demand for the event, with over 90 registered delegates and significant interest in the latest developments in the Irish market.

Speakers at this and its sister event in Hong Kong included Standard Chartered’s Nigel Anton, Ardmore Shipping’s Mark Cameron and Conor Warde of Clyde & Co. Both Standard Chartered and Ardmore Shipping have significant operations in Ireland, alongside a variety of maritime names such as d’Amico Shipping, Moore Stephens, the Denholm Group, Liebherr and Peninsula Petroleum.

The event in Singapore was sponsored by Bank of Ireland and CJC Law, both of whom presented. Speaking at the event, the IMDO’s director Liam Lacey outlined some of the measures already taken by government and some of those envisaged to further support and develop the industry, adding that “Ireland is a stable, English speaking, European jurisdiction with ambitious maritime plans, and we are ideally placed to meet growing demands from the Industry for stability and certainty. It is a truly exciting time to be involved in the industry in Ireland."

There is significant Government support and momentum for the development of the maritime sector in Ireland. The Government strategy for the sector is covered in a wider document published in 2012 called Harnessing Our Ocean Wealth (HOOW). A follow-up report released in June of this year details specific projects which will allow Ireland to meet ambitious targets laid out as part of HOOW, including doubling the Sectors’ contribution to GDP by 2030.

Those initiatives in the maritime space include the creation of an ocean yacht racing hub, the construction of an International Shipping Services Centre and specific recommendations to create a responsive regulatory environment and a dedicated body with the responsibility for the development of the entire sector.

What now?

Ireland has one of the most competitive tonnage tax regimes in Europe, a globally leading financial services industry and significant support from the Irish Government to develop the Maritime industry. So the only question for those who have yet to consider doing business in Ireland is 'why?'.

#IrishPorts - Transport Minister Paschal Donohoe has today (Friday 10 July) welcomed the announcement by the European Commission that a number of projects – including developments across three Irish ports – have been recommended for co-funding under the Connecting Europe Facility (CEF).

"This is good news and a further boost for infrastructure investment in Ireland," said Minister Donohoe. "The recommendation by the European Commission in respect of these five projects is a positive step in the development of these key infrastructural projects which will allow for future growth and development which will ultimately help with job creation.

“I was particularly delighted to support the port companies in their applications. Ireland’s National Ports Policy categorises the Port of Cork Company, Dublin Port Company and Shannon Foynes Port Company as Ports of National Significance (Tier 1) in recognition of the key role of they play in national economic development.

"This positive announcement will support significant, planned investment by the ports and follows the news that the Ringaskiddy project in the Port of Cork has recently been granted planning permission, while just today the Alexander Basin Redevelopment Project received a positive planning decision from An Bord Pleanála, allowing the largest ever infrastructure development project to be carried out at Dublin Port.

"In addition, Shannon Foynes Port Company’s first major project, the redevelopment of the East Jetty, is now well underway having commenced earlier this year. The continued commercial development of the port companies is a key strategic objective of the Government which will support job creation across the country as they are progressed in the years to come.”

The five projects are as follows:
· Port of Cork, Ringaskiddy Project (Project Type: Works, Co-funding rate: 17.47%, EU Max Contribution: €12,736,001.10)
· Shannon Foynes Port Company, Jetty Enhancement for Sea Port (Works, 20%, €2,200,000)
· Shannon Foynes Port Company, Connecting International Sea Cargo to the Irish Rail Network (Study, 50%, €800,000)
· Dublin Port, Alexandra Basin Redevelopment Project (Works, 10.3%, €22,782,055)
· City Centre Re-signalling Project (Works, 30%, €17,586,760.20)