EU support for LNG for ships

Liquefied natural gas is fast emerging as a more environmentally friendly fuel for the shipping sector and its uptake is encouraged by the European Union.

The EU will co-finance with a little over €1 million from the TEN-T Programme a series of studies to help make the LNG supply for ships a reality on the Spanish Mediterranean coast.

Selected for funding under the 2012 TEN-T annual programme’s priority on new technologies for transport infrastructure, the studies aim to overcome the existing barriers for developing an LNG bunkering supply chain in the region. The studies will also focus on the transition of maritime fleets and port facilities, reducing the time-to-market of LNG bunkering services in the Spanish Mediterranean ports. The technical, operative, economic and legal aspects of LNG bunkering vessel operations will also be analysed and there will be an evaluation and design of an optimised LNG supply chain in key Spanish ports in the Mediterranean.

Promoting innovation

DNV GL and the Maritime and Port Authority of Singapore have signed a maritime research and development memorandum of understanding. The aim of this memorandum is to promote innovation in the maritime industry, especially in the areas of LNG research and technology, marine environment and resources, and the organisation of maritime-related thought leadership forums to promote green shipping, green port and green technology in the Singapore maritime community.

The signing ceremony took place at the DNV GL 150th anniversary celebrations, in the presence of Mr Lui Tuck Yew, Singapore’s Minister for Transport and Mr Borge Brende, Norway’s Minister of Foreign Affairs.

A growing fleet

Hamburg Sud has celebrated the christening of its new container ship Cap San Lorenzo at the Exolgan Terminal in Buenos Aires, Argentina. Hamburg Sud specialises in the transportation of refrigerated goods such as fresh fruit, meat, fish and vegetables.

This is the fourth container ship in a series of six newbuilds for Hamburg Sud in the Cap San class. Ships in this class have a nominal slot capacity of 9,600 TEU. Moreover, the Cap San Lorenzo has 2,100 reefer slots, which makes it one of the world’s largest ships for reefer capacity.

Built at the Hyundai Heavy Industries shipyard in Ulsan, South Korea, Cap San Lorenzo will join the Hamburg Sud liner service between Europe and the East coast of South America.

On patrol

The Kingdom of Saudi Arabia has requested a possible sale of 30 Mark V patrol boats, 32 27mm guns, spare and repair parts, personnel training, technical documentation and US government and contractor engineering. The estimated cost is around €850m.

This proposed sale will contribute to the national security of the US by helping to improve the security of Saudi Arabia and will enhance interoperability between the US and the Kingdom of Saudi Arabia.

The Mark V patrol boats will give the Royal Saudi Naval Forces an effective combat and threat deterrent capability to protect the maritime infrastructure in the Saudi littorals. The boats will be used primarily to patrol and interdict intruders in Saudi territorial seas and recognised economic exclusion zones.

Prolongation of special competition regime

The European Commission is inviting comments on a proposal to prolong an exemption of liner shipping consortia from the application of EU antitrust rules that prohibit certain agreements between companies.

The maritime consortia block exemption regulation allows shipping lines to enter into cooperation for the purpose of providing a joint service. In light of the comments received, the Commission will then adopt a new regulation before the expiry of the current regulation in April 2015.

A consortium is a grouping of shipping lines which cooperate to provide joint maritime cargo transport services. Such agreements usually allow liner shipping carriers to rationalise their activities and achieve economies of scale. If consortia are faced with sufficient competition and are not used to fix prices or share the market, the users of the services provided by consortia usually benefit from improvements in productivity and service quality. The Commission has therefore exempted such agreements from the prohibition in Article 101 of the Treaty on the Functioning of the European Union, provided that they do not exceed a certain market share.

The first consortia block exemption regulation was adopted in 1995 and prolonged several times. The latest market investigation, conducted in 2013, showed that the main tenets of the Commission’s approach are still valid. For consortia and alliances exceeding the market share foreseen in the block exemption regulation, the Commission will continue to closely monitor market developments and the conduct of companies to ensure that markets remain open and competitive.

The draft regulation, published for consultation, proposes to continue to exempt consortia under the existing legal framework for an additional five-year period until April 2020.

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