Connect with us

Maritime

Plans Underway to Boost Congo River Shipping Capacity

Published

on

…As Teekay Corp Narrows Loss amid Stronger LNG, Crude Tanker Markets***

The ICTSI Matadi Gateway Terminal in the Democratic Republic of the Congo has hosted its first call by a gearless container ship, the 2,500-TEU Safmarine Nuba. It is also the first time a vessel of this capacity has called. 

Matadi is located on the left bank of the Congo River, 92 miles from the nation’s capital Kinshasa. The deployment of a vessel of this size provides a more cost-efficient means of serving the capital city of Kinshasa, says ICTSI. Use of any other port gateway entails substantial additional land transport costs. 

“The logic of using Matadi, the closest port gateway to Kinshasa, where virtually all the cargo goes, is irrefutable,” says Hans-Ole Madsen, ICTSI Senior Vice President. “If you start your overland journey from points such as Banana or Pointe Noire the additional overland transport costs, compared to using Matadi, will work out to be more expensive than the entire sea-freight cost from Shanghai to Matadi. We are also working with the relevant authorities to enhance the rail link between Matadi and Kinshasa, the only direct uninterrupted rail link between a port gateway and the capital city.”

The terminal operator, with government support, plans to realize strategic dredging in the Congo River up to a draft of 12.5 meters, which would allow the passage of Panamax class vessel calls. A further phase under development will facilitate access for the slightly larger WAFMAX vessels such as the Safmarine Nuba, which require a draft of 14 meters.  

Handling over the quay at the Matadi Gateway Terminal is undertaken by two Terex Gottwald Model 5 mobile harbor cranes, each able to handle up to 60 tons when working with an automatic twin-lift spreader and 50 tons in a single lift. Maximum working radius is 51 meters (167 feet). A third Kone mobile crane will soon be installed, providing the ability to turn a 2,500-TEU capacity vessel in under 12 hours.

The $100 million terminal opened for business in 2016. Container clearance from the terminal is the most efficient in the DRC averaging around seven days, half the time typically, says ICTSI. Advances made at the terminal have doubled the terminal’s annual capacity from 175,000 TEUs to 350,000 TEUs.

In the meantime, Bermuda-based shipping group Teekay Corporation ended 2018 with a narrowed net loss of USD 57.7 million, compared to a loss of USD 529.1 million reported a year earlier, benefiting from improving LNG, crude tanker market conditions.

Revenues dropped to USD 1.7 billion in 2018 from USD 1.9 billion posted in 2017.

For the fourth quarter of 2018, net loss stood at USD 6.4 million, against a loss of USD 32.2 million seen in the corresponding period a year earlier.

Additionally, revenues were USD 491.5 million in Q4 2018, an increase of 50.4% when compared to USD 326.7 million recorded in the same quarter of 2017.

As explained, the company’s consolidated quarterly results were positively impacted by an increase in revenue from the Hummingbird Spirit FPSO unit. In addition, they were impacted by higher income and cash flows from Teekay LNG as a result of the deliveries of twelve liquefied natural gas (LNG) carrier newbuildings between October 2017 and December 2018.

What is more, higher income and cash flows in Teekay Tankers, as well as higher equity income relating to Teekay Offshore’s USD 96 million positive settlement with Petrobras, also had a positive impact on the consolidated results.

“In the fourth quarter of 2018, our total CFVO increased by approximately USD 50 million, or 25 percent, compared to the prior quarter, primarily driven by the contract start-up of various growth projects across the Teekay Group, certain LNG vessels commencing new contracts at firm rates, and higher spot tanker rates,” Kenneth Hvid, Teekay’s President and Chief Executive Officer, commented.

 “The fourth quarter results also included our minority portion of Teekay Offshore’s previously-announced positive settlement with Petrobras. In addition, our consolidated and Teekay Parent cash flows this quarter would have been higher by approximately USD 8 million were it not for the unplanned shutdown of the Foinaven FPSO and the previously-guided shutdown of the Banff FPSO,” Hvid further said, adding that the two units are now operational.

“Since the beginning of 2018, the Teekay Group has continued to build financial strength and grow its cash flows while also benefiting from improving LNG and crude tanker macro fundamentals, all of which supports greater long-term value creation,” Hvid continued.

Since November 2018, Teekay LNG took delivery of three additional LNG carrier newbuildings, all on long-term charter contracts, and repurchased over 1.1 million common units at an average price of USD 11.38 per unit.

In addition, Teekay Tankers signed a term sheet for an additional sale-leaseback transaction, which is expected to increase liquidity by approximately USD 25 million, and increased its operating leverage to a potential tanker market recovery by entering into time charter-in contracts for 2.5 Aframax/LR2 vessel equivalents.

Moreover, Teekay Parent repurchased around USD 42.4 million of its 2020 unsecured bonds since the beginning of December 2018. According to Hvid, one of the company’s key priorities will be to refinance its 2020 bond maturity with a smaller bond.

The combined Teekay entities operate total assets under management of approximately USD 17 billion, comprised of approximately 220 liquefied gas, offshore, and conventional tanker assets.

Maritime Executive with additional report from World Maritime News

Continue Reading
Advertisement Simply Easy Learning
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

five − four =

Latest News

CIoTA Executives Visit NIMASA DG, Mobereola

Published

on

CIoTA Executives Visit NIMASA DG, Mobereola

…Pledged collaboration to ensure the transportation sector is professionally driven

The Executives of the Chartered Institute of Transportation Administration of Nigeria (CIoTA) paid a visit to the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, at the NIMASA Towers in Lagos.

CIoTA Executives Visit NIMASA DG, Mobereola
The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dayo Mobereola (right), receiving a plaque from the President of the Chartered Institute of Transportation Administration of Nigeria (CIoTA), Mr Segun Obayendo, during the NIMASA DG’s conferment as a Fellow of CIoTA at the NIMASA Towers in Lagos.

The executives, led by the President, Mr Segun Obayendo, congratulated the DG on his appointment and pledged to collaborate with the agency in ensuring the transportation sector is professionally driven.

The DG welcomed the association and expressed the Agency’s readiness to partner with CIoTA towards achieving a robust transport sector.

The President of the Chartered Institute of Transportation Administration of Nigeria (CIoTA), Mr. Segun Obayendo; the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola; the Executive Director of Operations, NIMASA, Engr. Fatai Adeyemi; and the Executive Director of Maritime Labour and Cabotage Services, NIMASA, Jibril Abba, during the NIMASA DG’s conferment as a Fellow of CIoTA at the NIMASA Towers in Lagos.

Dr. Dayo Mobereola, the NIMASA DG, was conferred with a fellowship at the institute.

Continue Reading

Latest News

NPA: Tinubu Sacks Bello-Koko, Appoints Dantsoho New MD; Sen. Adeyeye Chairman

Published

on

NPA: Tinubu Sacks Bello-Koko, Appoints Dantsoho New MD; Sen. Adeyeye Chairman

President Bola Tinubu has kicked out the Nigerian Ports Authority NPA Managing Director, Muhammed Bello-Koko and replaced him with Dr Abubakar Dantsoho. He also approved the appointment of Sen. Adedayo Adeyeye as Chairman of the NPA Board.

A statement by his spokesman, Chief Ajuri Ngelale, the new Managing Director is a core professional and holds a PhD, in Maritime Technology.

“Dr Dantsoho holds a Doctorate in Maritime Technology from Liverpool John Moores University, United Kingdom, and a Master’s degree in International Transport from Cardiff University of Wales, United Kingdom.

Dr Abubakar-Dantsoho

“Before his appointment, he had served in various roles in the Nigerian Ports Authority as Assistant General Manager; Technical Assistant to the Managing Director; Port Manager, Onne Port; and Principal Manager, Tariff & Billing”, Ngelale stated, adding:

“Senator Adeyeye, the Board Chairman, is a seasoned lawyer, journalist, and politician,” the statement further said.

Sen. Adedayo Adeyeye

Adeyeye is a former Minister of State for Works and a former Ekiti South Senatorial District senator.

“The President expects the new leadership of this pivotal agency to deploy excellence in the discharge of their duties to enable efficient port services and improved industry outcomes,” Ajuri Ngelale indicated further.

Continue Reading

Latest News

Customs Enforcement: NAGAFF Clarifies Role And Mandate Amidst Allegations Of Frustration, Extortion

Published

on

Customs Enforcement: NAGAFF Clarifies Role And Mandate Amidst Allegations Of Frustration, Extortion

The National Association of Government Approved Freight Forwarders (NAGAFF) has expressed concern over the lack of understanding among some freight forwarders regarding the role of the Enforcement Unit of the Nigeria Customs Service (NCS) at Tin Can Port.

In a statement released by NAGAFF Headquarters, the association emphasized that the Enforcement Unit serves as gatekeeper and an intervention force, mandated to police the ports and border stations, acting on intelligence information from the Customs Intelligence Unit, Interpol, and informants.

NAGAFF clarified that the Customs Intelligence Unit operates effectively, bursting revenue crimes in customs ports, and encouraged freight forwarders to report any corruption or observations to the appropriate authorities.

Customs Enforcement: NAGAFF Clarifies Role And Mandate Amidst Allegations Of Frustration, Extortion

The association advised freight forwarders to maintain professional standards, ensuring genuine declaration of imports and exports for customs purposes, as non-disclosure is an offence against customs laws, leading to seizure and prosecution.

NAGAFF assured high response rates from its High Command to protect genuine declarations and compliance, emphasizing that the Comptroller General of Customs and his management team will not tolerate any corrupt acts.

The statement was signed by Dr Clement Iwegbuna, NPS, NAGAFF Hqtrs, and forwarded to the Comptroller General of Customs, DCG Enforcement, and DCG T&T Hqtrs for their information and records.

Continue Reading
ADEBAYO SARUMI: Doyen of Maritime Industry Marks 80th Anniversary, Saturday 

Editor’s Pick

Politics