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BW LPG Calls Dorian LPG to the Negotiating Table

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….As Grimaldi Pens PureSOx Scrubber Connectivity Deal with Alfa Laval***

Owner and operator of gas carriers BW LPG has called Dorian LPG to return to the negotiating table, only weeks after its takeover proposal got rejected.

BW LPG sent an open letter to Dorian LPG regarding its combination proposal, under which Dorian shareholders would receive 2.05 BW LPG shares for each Dorian share.

Based on BW LPG’s current price of NOK 33.80 (USD 4.17) as of June 25, 2018, BW LPG’s proposal to combine with Dorian represents a value of USD 8.55, a 22.9% premium to Dorian’s unaffected share price of USD 6.96 as of May 25, 2018. On a pro forma basis for the year ended December 31, 2017, Dorian would have contributed 33% of revenue, 38% of EBITDA and 40% of free cash flow while its shareholders would receive a 45% stake in the combined entity.

BW LPG informed that the overall market response has been positive and reflective of the significant benefits of the proposed combination, including the creation of a leading VLGC player, significant synergies, increased market capitalization, cash flow accretion, liquidity for Dorian shareholders, and a stronger credit profile.

“We urge Dorian’s Board of Directors to respond to its shareholders and engage with us. Since announcing the proposal, we have spoken with many BW LPG and Dorian shareholders and are pleased with the positive feedback we have received,” Martin Ackermann, BW LPG Chief Executive Officer, said.

“We were surprised that Dorian’s Board of Directors rejected our proposal without giving us the opportunity to engage in a discussion, and believe a number of the points Dorian’s Board of Directors highlighted suggest a misunderstanding of our business and the proposed combination. We believe that a discussion between Dorian and BW LPG would be appropriate to address any questions Dorian may have about our proposal and we are ready to meet with them,” Ackermann concluded.

In the meantime, the Grimaldi Group has signed an agreement with Alfa Laval for PureSOx connectivity services on five vessels operated by its Atlantic Container Line (ACL) brand, specialized in transatlantic cargo shipping.

Under the three-year contract, Alfa Laval will provide ACL compliance monitoring and data for use in optimizing PureSOx operation.

ACL has hybrid PureSOx scrubber systems installed on all five of its Generation 4 (G4) vessels: Atlantic Sail, Atlantic Sea, Atlantic Sky, Atlantic Star and Atlantic Sun.

The PureSOx systems on these vessels will now be retrofitted with the Alfa Laval Remote Emission Monitor (ALREM), a data reporting and storage device that is the basis for the PureSOx connectivity program.

The deal is part of a much larger PureSOx service agreement for the ACL vessels, which includes training, yearly inspections, spare part supply and a sensor exchange program.

“We are eager to start taking advantage of connectivity with our PureSOx systems,” says Pierluigi Marmo, Technical Manager of the ACL G4 vessels.

“The customized connectivity services will increase our own insight and give us even greater access to the Alfa Laval service organization. Both of those things will make life easier for ACL and the Grimaldi Group as a whole.”

Grimaldi Group is also working on a proprietary solution to connect equipment across its vessels, into which the ALREM will also be integrated.

In this way, Grimaldi aims to have access to all valuable information in one place.

“We’ve seen the value that collected data can offer,” says Dario Bocchetti, Corporate Energy Saving Manager for the Grimaldi Group.

“By evaluating data from the current data logging system, for example, we’ve realized that PureSOx releases even less SOx than if we were sailing on MGO. With a fully connected solution based on the ALREM, such analyses will be far easier to perform.”

Bocchetti sees the potential for making even better use of the PureSOx scrubbers across the Grimaldi Group.

“Connectivity is useful for seeing where we are and demonstrating our compliance easily, but it will also be beneficial for our operational levels down the road,” he explains.

World Maritime News

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TCIP: We Focus On Your Wellbeing, Trade Facilitation, Dera Nnadi Tells Stakeholders

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TCIP: We Focus On Your Wellbeing, Trade Facilitation, Dera Nnadi Tells Stakeholders

…Encourages free flow of questions to create opportunities for further enlightenment 

The Tin Can Island Ports Customs Command has assured of its commitment to efficient trade facilitation and the prioritisation of the well-being of stakeholders who do business within the Command’s jurisdiction.

The Customs Area Controller, Compt Dera A. Nnadi stated this, on Monday while having a business chat with stakeholders at the command.

The chat was largely on new modalities of what is expected of stakeholders who do business in the Command daily.

Emphasising his theme for the year 2024, which is “A Year For Stakeholders,” the CAC stated that the well-being of all who come to do business in the area command is a priority to him, the command and the service. 

Dera stressed that the year is at its last quarter, and appreciated all efforts so far put in to ensure that the revenue for the year is achieved and called for compliance as all hands must be on deck to make it happen.

The Area Controller said he understands the struggles stakeholders go through during the ember season, especially towards the end of the year, assuring that genuine declarations from compliant traders will not have issues of delay except for those who think they can circumvent the system; who should have themselves to blame as cutting of corners will not be negotiated.

He further stated that he had ensured that all new crested bonded terminals domiciled in TCIP have space available for stakeholders while they go about their businesses, but at the headquarters here, no such space has been created.

 He thereafter promised that he would look critically into it as renovations are ongoing on the premises. 

He advised the stakeholders to learn to keep the environment clean, pending when new bins will be distributed in designated areas, as a clean environment portrays a healthy lifestyle. 

The CAC gave room for questions, which he answered while promising that all issues raised would be looked into with the Public Relations Officers of the command, on time.

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Public Opinion: Nigeria @ 64: A Lament for Lost Opportunities, Collapse of Indigenous Shipping

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Public Opinion: Nigeria @ 64: A Lament for Lost Opportunities, Collapse of Indigenous Shipping

As Nigeria marks 64 years of independence, one of the most glaring failures of our post-colonial governance is the tragic collapse of our indigenous shipping industry. The Nigerian National Shipping Line (NNSL), bequeathed to us by the colonial administration as a robust national shipping carrier, once stood as a symbol of pride, sovereignty, and economic promise. Yet, within just two and a half decades after independence, the NNSL was thoroughly mismanaged and run aground, becoming a reflection of the broader dysfunction that has plagued our maritime sector.

At the time of independence in 1960, Nigeria inherited a fleet of ships that were not only operational but positioned to support our emerging economy. The NNSL was a testament to the vision of building a self-sufficient maritime power capable of transporting goods and commodities both in and out of our bustling seaports. But today, 64 years later, we find ourselves in a pitiful state, where no Nigerian shipping company owns even a single vessel among the over 5,000 ships that call our ports annually. These ships, owned by foreign interests, dominate our waters, enriching their nations while we sit idly by, exporting oil, gas, and agricultural produce, and importing manufactured goods without a stake in the process.

This collapse is not due to a lack of potential or resources, but rather a systematic and pervasive failure of leadership and vision. The Nigerian Maritime Administration and Safety Agency (NIMASA), created with the primary mandate of promoting indigenous shipping, has failed spectacularly in this regard. Established to regulate and nurture the growth of local shipping companies, NIMASA has instead become a bureaucratic entity more interested in revenue collection than in fostering the growth of indigenous maritime capacity. The sad reality is that despite NIMASA’s vast resources and regulatory power, Nigeria’s presence in the global shipping industry remains negligible.

Worse still, the Federal Government’s approach to the development of indigenous shipping has been nothing short of lackadaisical. Successive administrations have paid lip service to the need for a vibrant national shipping industry, but their actions have demonstrated a complete disregard for the sector’s strategic importance. The national shipping line was allowed to decay, with successive governments failing to invest in its revival or even establish policies that could encourage the growth of indigenous companies capable of competing in the international shipping arena.

The creation of the Ministry of Marine and Blue Economy by the present administration was seen by many as a step in the right direction. Yet, almost a year after its formation, there has been little to no improvement in the state of indigenous shipping. The ministry has yet to make any significant strides toward addressing the core issues plaguing the sector, including lack of infrastructure, access to capital, and policy support. The Nigerian government seems content to allow foreign-owned vessels to dominate our waters, extracting profit from our resources while we remain passive spectators.

The negative impact of this failure is far-reaching. Without a strong national shipping carrier, Nigeria is at the mercy of foreign shipping companies, paying exorbitant rates for the transportation of our goods. This erodes our trade balance, weakens our economic independence, and limits job creation in a sector that could employ tens of thousands of Nigerians. Moreover, the absence of a robust maritime industry stifles our ability to leverage the blue economy, a sector that could potentially contribute billions to our GDP if properly harnessed.

As we reflect on this tragic decline, the question must be asked: what is the way forward? First, the government must get serious about developing indigenous shipping. This requires more than the creation of ministries and agencies; it demands a focused, strategic plan that includes investment in shipbuilding infrastructure, access to credit for Nigerian ship owners, and policy frameworks that promote local participation in international trade. NIMASA must be refocused to fulfil its original mandate, not as a revenue-generating agency but as a true promoter of Nigerian shipping interests.

We must also recognize the strategic importance of having our national shipping carriers. It is inconceivable that a country with the economic potential of Nigeria remains without its fleet of vessels. Participation in the movement of international trade is not just about economic gain—it is about sovereignty, security, and our standing in the global maritime community.

The time for complacency is over. The Federal Government must act now to revive the dream of an indigenous shipping industry. Our future prosperity depends on it. The failure to do so will only deepen Nigeria’s reliance on foreign powers, continuing the cycle of dependency and lost opportunities that have plagued our maritime sector for far too long.Dr. Bolaji Akinola, a revered Maritime industry stakeholder, writes from Lagos 

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Book Launch: CGC Adeniyi Pledges Enhance Investment In Education, At ‘Business Geek’ Presentation

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Book Launch: CGC Adeniyi Pledges Enhance Investment In Education, At 'Business Geek' Presentation

… Affirms the critical role of education in nation’s development

The Comptroller-General of Customs (CGC), Adewale Adeniyi on Thursday emphasised the importance of quality education as a top priority of the Customs Service, stressing that management will continue to invest in it, as it plays a critical role in the nation’s development.

The CGC stated this in Abuja, on 26 September 2024, reaffirming the Service’s unwavering commitment to investment in education, particularly, into the Service’s schools nationwide, while presiding as Chairman, on the occasion of the official launch of the book ‘Business Geek: Innovative Incubator From Concept to Reality’.

The book was authored by the wife of one of the high-ranking officers of NCS, Asma’u Isah Maibasirah, and launched at the NAF Conference Centre, Abuja.

In his address, CGC Adeniyi affirmed the critical role of education in the nation’s development, hence the commitment to building and renovating the Service’s primary and secondary schools, in the various states.

He highlighted the importance of ensuring that every child, regardless of background, has access to an excellent educational experience; and assured that the Nigeria Customs Service will continue to deploy resources to address this issue.

Speaking on the book, the Comptroller-General pointed out that it offers valuable insights into entrepreneurship and innovation, which are critical for addressing the country’s unemployment challenges. 

 “There must be something in this book that we must pay serious attention to”, he said, adding: “It is a very timely intervention because we have a high unemployment rate, especially among the youth, and I believe this is the time we must all grab this book.

“The Business Geek book, authored by Asma’u, aims to foster a culture of creativity and business acumen among Nigerians, particularly the youth, by providing practical guidance on transforming innovative concepts into viable enterprises.”

He commended the author’s initiative and noted that the book aligns with President Bola Ahmed Tinubu’s agenda of empowering small-scale businesses to revitalise the economy.

CGC Adeniyi, however, pledged the support of the Nigeria Customs Service in collaborating with the author to ensure the book reaches a wider audience, adding, “We are committed to supporting the author in providing adequate printed copies whenever the need arises.”

In his review of the book, Professor Muhammad Aliyu Paiko, Vice-Chancellor of Abdulkadir Kure University, Minna, Niger State, described the publication as insightful and robust research material for intellectuals and students alike.

He lauded the author for her thorough research and compelling presentation of ideas relevant to academic and professional audiences.

Addressing the gathering, the author of the book, Dr Maibasirah, expressed her profound gratitude to Mrs Kikelomo Adewale Adeniyi, who represented the First Lady of the Federal Republic of Nigeria, Senator Oluremi Tinubu, for her unwavering support towards the success of the publication.

Dr Maibasirah acknowledged the critical role the First Lady played in providing encouragement and assistance that ensured the book’s successful launch.

She also appreciated the Comptroller-General and his team for their immense support, which she noted had a positive impact on the entire process of publishing and launching the book.

Additionally, she extended her sincere thanks to the former Governor of Zamfara State, Senator Abdulaziz Yari, who served as the Chief Launcher at the ceremony, and other distinguished guests for their presence and contributions to the event.

According to her, the Business Geek book contributes to the discourse on entrepreneurship and highlights efforts to promote small and medium-sized enterprises (SMEs) as a pathway to economic prosperity.

The event drew participants from various sectors and served as a platform for discussing strategies for enhancing entrepreneurial skills and leveraging innovative solutions for national development.

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