Greek Shipping News Cuts
Week 16 - 2011


Greek owners emerge as chief players in rush for newbuildings

--- Wednesday 20 April 2011, 12:01 by Nigel Lowry
The reasons why Greeks ordered in 2010
SHEDDING their previous image as predominantly investors in secondhand vessels, Greek shipowners are now established as an important factor for world shipbuilding, writes Nigel Lowry.
The number of vessels in the Greek orderbook overtook its Japanese equivalent in 2007, and since 2009 it has vied with that of German owners. Both, though, entered 2011 behind the Chinese orderbook.
But measured by value of investment, solidly since 2005 Greeks have been the single most important nationality in contracted newbuildings with an orderbook that peaked at about $68bn in 2007-2008.
Some pundits have been dumbfounded as to the reasons for adding to the overhang. Stavros Hatzigrigoris, managing director of Maran Tankers Management, the tanker arm of the Angelicoussis Shipping Group, offers some answers.
Reasons why Greeks ordered in 2010, he says, include:
Why Greeks are still ordering, says Mr Hatzigrigoris, albeit at a slower pace, in 2011 include:
According to Mr Hatzigrigoris, further ordering will be no surprise.

Tankers, bulkers and box ships are all in the newbuilding mix
---A few weeks ago all the rage was container ships, with a number of leading Greek owners contracting newbuildings in China and South Korea. While Evangelos Marinakis' Container Carrier Corp has placed an order for up to eight 5,000teu ships, and Eastern Mediterranean has ordered six feeder ships in two blocks, it appears the newbuilding market is heading in different directions as interest on the part of owners in dry bulk and energy ships perks up.
Peter G Livanos-controlled GasLog has emerged as the "unidentified" client that has ordered two 155,000cumtr LNG carriers at Samsung HI, in South Korea. The ships are said to be costing around $200m each, and GasLog is thought to be holding two further options which have to be decided upon by July.
Elka Shipping, the London arm of Glyfada-based European Navigation has contracted two 155,000dwt shuttle tankers, with two options, at South Korea's STX Offshore & Shipbuilding, with the Karnessis-controlled company reportedly paying around $93m for each suezmax.
These contracts were just two of a rash to emerge in recent days. Dinos Martinos-led Thenamaris has reportedly ordered a 319,000dwt VL at China's Shanghai Waigaoqiao for delivery early 2014. No price has been given. This is a return to more familiar activity for Thenamaris which contracted two firm, two options 4,800teu ships at Zhejiang Ouhua with delivery of the firm units in June and September 2013.
US-listed DryShips has penned a bulker newbuilding contract after a year of waiting and watching the dry market. The Athens-based, George Economou-led company has ordered a pair of capesize bulkers at an unidentified state-owned Chinese yard at $54.2m a ship. Ziad Nakhleh, DryShips' cfo, says funding for the vessels will not pose a problem as the dry-cargo arm has the equity on hand. The capes will deliver in the third and fourth quarters of 2012. Late 2010 Economou ordered 12 tankers at South Korea's Samsung HI at a cost of $770m. Meanwhile, it appears rumours DryShip affiliate Ocean Rig is ready to give up its drillrig options at Samsung are premature. Earlier this month the yard revealed an order for up to four drillships from AP Moller-Maersk with suggestions Maersk had taken drillship options held by Ocean Rig, but Maersk denies this.
US-listed supramax specialist Eagle Bulk / Sophocles Zoullas has ordered five 57,000dwt bulkers at Hantong HI, China, at $29m each, with delivery 2013. There are now 12 ships on order to be operated by the Eagle Bulk-linked Delphin Shipping.
Kristen Marine / Krontiras interests has reportedly ordered two 35,000dwt bulkers at STX Shipbuilding for delivery first half 2013. No price details have been given.
A 37,200dwt bulker has been booked by Atlantis Management at China's recently aggressive Zhejiang Ouhua for delivery in May, 2012. No price was disclosed. -- See following story & 'Greek Market Report'
-- Filed: 2011-04-20

Opinions split on spin-off offerings
---The Box Ship and Golar LNG Partners IPOs are off the ground but a wave of followers is hardly likely.
Perhaps. But virtually no one is predicting a 2005-style wave of IPOs just because spin-offs Golar LNG Partners and Box Ships were able to list back-to-back.
Their success could spur more gas and containership hopefuls, some say, but there is essentially no market for a conventional tanker or bulker listing in the foreseeable future.
Box Ships has an initial fleet of three vessels owned by Paragon and one belonging to a private company controlled by Bodouroglou. In addition, it has agreements in place to buy two more vessels from third parties.
However, Box Ships management feels it is more appropriate to compare the management fee to that paid by other public companies rather than private ones, the sources add. Also, Box Ships argued during its investor roadshow that its overall operating costs are in line with those of peers Seaspan and Danaos Corp, and lower than those of Costamare.
Still, that was not enough to sell the deal within the intended price range. The Box Ships defender chalked this up to an increasingly tough investor audience that is looking for a discount on any shipping IPO.
The Box Ships IPO was led by investment bank UBS with Morgan Stanley. The supporting cast included Cantor Fitzgerald, ABN Amro, Stifel Nicolaus Weisel, Lazard Capital Markets and Unicredit Capital Markets.
By Joe Brady Stamford
Published: 22:01 GMT, 20 Apr 11 | updated: 11:12 GMT, 19 Apr 11

Ferry operators look to cover lost ground
---By Nikos Bardounias. Monday April 18, 2011 (15:22)
Ferry companies reported losses of more than 300 million euros in 2010 due to rising petrol prices and reduced demand for passenger and vehicle transportation services. They are hoping to make up some of the lost ground on this holiday.
Initial figures indicate that demand levels will fluctuate this Easter, depending on the destination.
For certain islands, passenger numbers are expected to remain steady, while for others, a drop is on the cards. However, on islands such as Crete, ferry operators expect an increase in passenger numbers.
Compared to last year, travelers this Easter will be called on to pay an 8 to 15 percent hike in ticket prices.
Additionally, companies will not be providing discounts, with the exception of ANEK, which plans to cut prices by 25 percent for morning routes between Piraeus and Hania, Crete.
As of the start of April, ferry companies have bumped up ticket prices in order to cover rising fuel prices, which account for up to 60 percent of operating costs. Additionally, the price hike will help offset a dip in revenues arising from a 7 percent drop in passenger and vehicle tickets toward the majority of destinations since the start of the year.

Aegean goes for GL fleet management software
---(Apr 21 2011)
Greek oil and shipping company Aegean Bunkering Services has implemented Germanischer Lloyd's fleet management software suite GL ShipManager and GL FleetAnalyzer.
GL's software unit GL Maritime Software will provide its integrated ship/fleet management software for 52 vessels in Aegean Bunkering's fleet.
Aegean will install the GL ShipManager suite systems in their offices and on board their vessels.
The modules will enable the company to manage their tasks more time and cost efficiently, provide increased transparency of all vessel data and help to keep operations in line with industry requirements such as ISM and TMSA, GL said.
With the addition of GL FleetAnalyzer, powerful reporting and analysis of the entire fleet is possible.

Aegean Marine Petroleum Network Inc. Announces Expansion Plans in Panama
Awarded Long-Term Concession to Operate Storage Facilities in Ports Located at Each End of the Panama Canal; Company Plans to Commence Physical Supply Operations in Panama by the End of Q2 2011
PIRAEUS, Greece, April 18, 2011 /PRNewswire via COMTEX/ --
Aegean Marine Petroleum Network Inc. (NYSE: ANW) today announced it has been awarded a 20-year concession by the Panamanian Maritime Authority (PMA) to operate onshore storage facilities in the ports of Cristobal and Balboa in Panama on an exclusive basis. The award is subject to the fulfillment of certain conditions by the Company and completion of definitive documentation with the appropriate Panamanian authorities. In addition, the Company has been pursuing the necessary approvals and, subject to receipt of such approvals, expects to commence physical supply operations in both Cristobal and Balboa by the end of the second quarter of 2011.
The port of Cristobal and the port of Balboa are strategically positioned at each end of the Panama Canal, a critical conduit for international maritime trade that connects the Atlantic Ocean and Pacific Ocean. Both ports total approximately 14,000 transits per year and generate approximately 3 million metric tons of annual marine fuel sales volumes on a combined basis. The concession with Aegean is part of the PMA's efforts to expand and modernize the ports' infrastructure and services consistent with the current expansion of the Panama Canal. By 2014, the Panama Canal is expected to significantly increase its capacity, enabling larger ships to transit and providing greater efficiencies in global commerce.
The two onshore storage facilities in Panama currently total approximately 3 million barrels in capacity, with room for expansion, to ensure ample supply of marine fuel. Aegean intends to provide retail bunkering services to all major shipping sectors, particularly containerships, as well as leading cruise lines, in port and at sea after receiving the necessary licenses by the local authorities.
E. Nikolas Tavlarios, President, commented, "We are excited to have been awarded a long-term concession in Panama, a landmark event for our Company that is testament to Aegean's global brand recognition and balance sheet strength. By establishing a presence on both ends of the world's most famous canal, Aegean has significantly expanded its network for the global supply of marine fuel and strengthened its future growth prospects. We expect to realize numerous benefits from Panama's increasing role in global maritime trade in light of the projected expansion of the Panama Canal. The growing Panama market combined with the sizeable onshore storage capacity in the ports of Cristobal and Balboa position Aegean well to continue to meet the strong demand for its integrated services and profitably increase sales volumes. Consistent with our goal to further strengthen Aegean's geographical sales mix and drive future results, we remain on track to enter at least one more start-up market with attractive growth potential in 2011."
About Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea. The Company procures product from various sources (such as refineries, oil producers, and traders) and resells it to a diverse group of customers across all major commercial shipping sectors and leading cruise lines. Currently, Aegean has a global presence in more than 17 markets, including Vancouver, Montreal, Mexico, Jamaica, Trinidad and Tobago, West Africa, Gibraltar, U.K., Northern Europe, Piraeus, Patras, the United Arab Emirates, Singapore, Morocco, the Antwerp-Rotterdam-Amsterdam (ARA) region, Las Palmas and Cape Verde.

Amarcon and Technava Start Collaboration in Greek and Cypriot market
---Recently, Amarcon closed an important deal with Technava, a Greek company that represents first class marine equipment manufacturers from all over the world.
Founded in 1968, Technava is one of the leading companies in the supply, installation and service of equipment on board all types of ships. In the closed deal Technava is appointed for the sales of OCTOPUS products in the Greek and Cypriot market.
Amarcon will be exhibiting at CMA Shipping 2011 Stamford USA, 21, 22, 23 March 2011 at Booth 56. For more information about Amarcon or Technava, please visit our company website.

PPA: Presentation to the Association of Institutional Investors
---Today, 19/4/2011, took place the analysts briefing from the Management of Piraeus Port Authority SA at the Association of Institutional Investors, in accordance with the A.S.E Regulation.
The Company, its activities and its annual financial results were presented from the President of the Board of Directors and Managing Director of P.P.A SA, Mr.G. Anomeritis, the General Manager Mr. P. Petroulis, the Financial Director Ms. A. Vernardou and the Director of the Administration Directorate, Mr Hatzakos Stavros.
As to what regards the prospects for the current year, it was noted that the business activities of PPA SA are among the first to accept the positive or negative effects from the fluctuation of international trade, which currently faces recession showing however certain signs of recovery. Generally speaking, the entire system continues to be characterized by uncertainty.
The international transshipment cargo is expected to increase as a result of the anticipated increase in the volume of international trade. However, the downward trend of domestic cargo should be taken to continue within 2011 affecting the turnover of the company.
The beginning of operations at Pier I of the Container Terminal will play a catalytic role, due to the parallel operation of two autonomous and competing Container Terminals. The Management is working to attract old and new customers within a new pricing and regulatory environment. However a systematic and organized effort to counter this risk is being made though efforts to increase turnover from the Cruise and Car terminal sectors.
As far as cruise is concerned, a readjustment of tariffs was made aiming to close the gap that existed with current tariffs of competing ports, coupled with the effort to upgrade the quality of service provided.
As far as the Car Terminal is concerned, the works of upgrading and increasing the capacity of the Terminal are in progress, and this coupled with the coordinated contact with the clientele, will increase around 12% amidst recession.
A) The creation of the Attica Port System has been adopted by the shareholder (Ministry of Finance), the Ministry of Maritime Affairs, Islands and Fisheries, and the Organization of City Planning of Athens. The Privatization Commission has already launched the project for the recruitment of a consultant. This means that in 2011 the new scheme, will take place.
B) The Investment Plan 2011-2015 and particularly the major projects (the expansion of the cruise port, the monorail, the 5* hotel, the Cultural Coast, the Conference-Exhibition Center), have been unanimously approved by the Port Planning and Development Commission (E.S.A.L). They are already entering to the phase of fast-track licensing process and till the end of the year the subcontractors will be installed.
C) All projects are approved by the Interministerial Committee, which met twice in P.P.A SA premises, included the Cultural Coast which is particularly important for the City of Piraeus and the Cruise.
D) The administrative reforms and concessions will continue and in 2011 with emphasis to the cruise sector.