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INTERNATIONAL
UN under pressure to
curb Somali piracy
Despite joint efforts by several countries,
the scourge continues unabated said
Vitaly Churkin, Russia’s UN Ambassador.
Russia pressed for a stronger UN
mechanism to ensure effective legal
action is taken against pirates caught
off Somalia.
Russia’s UN Ambassador Vitaly
Churkin told reporters that the “weak
link” in international efforts to combat
piracy off lawless Somalia was “the
legal process, which would allow us to
be sure that there is no impunity once
pirates are caught.”
He said he introduced a draft
resolution in the 15-member body that
would direct UN chief Ban Ki-moon
“within three months to prepare a
report outlining various options of a
stronger international legal system” to
deal with the pirates caught off the coast
of Somalia.
Churkin said despite joint efforts by
navies of several countries, including
Russia, to deter piracy, the scourge was
continuing unabated. “So far the results
have not been entirely satisfactory. The
problem continues to be there and is
growing,” he said.
And Churkin said Moscow was
concerned by reports that littoral
countries such as Kenya decided to
stop prosecution of suspected Somali
pirates because of the heavy strain
on their over-populated prisons and
congested courts.
Genco shipping to purchase more ships
Baltic Trading, a newly listed shipping
company controlled by Genco Shipping
and Trading, may do a secondary offering
this year to buy more ships, Chief Financial
Offi cer John Wobensmith said.
The New York-based carrier of
commodities such as iron ore and coal
will put all its vessels in the spot market, a
strategy opposite to that of Genco, and will
maintain zero debt, Wobensmith said in his
fi rst interview after
last month’s IPO.
“Investors have
an appetite to get
spot exposure,
and there really
isn’t any other
drybulk company
out there right
now that can give
you that spot
exposure,” said
Wobensmith, who is also Genco’s Chief
Financial Offi cer. “The whole concept of
Baltic is not just to be a spot player, but to
give a good payback on dividend and have
no leverage.”
Baltic Trading raised $228 million
(Dh836.76m) in its IPO, pricing the 16.3
million common shares at $14 each, the
lower end of the target range of $14 to $16.
The company used the proceeds in the
purchase of six ships.
Baltic fell 10 cents, or 0.7 per cent, to
$13.90 on the New York Stock Exchange
yesterday. The shares fell 0.3 per cent in
their fi rst day of trading March 10, reached
as high as $14.27 on March 11 and dropped
as low as $13.05 on
March 19.
Baltic Trading is
“an equity-fi nanced
company” and
will use debt only
as a short-term
bridge facility,
Wobensmith said,
adding that more
equity offerings are
planned to expand
the fl eet.
“We are defi nitely planning this year, but
it all comes down to fi nding the right assets,
being comfortable with what you are paying
and the return numbers, and obviously the
equity market,” he said.
$200m worth deal for Drydocks World
Drydocks World – Southeast Asia (DDW-
SEA), the Southeast Asian subsidiary
of Drydocks World says it has won
newbuilding and conversion orders worth
more than $200 million (Dh734m) since
the beginning of 2010.
The company says that while the new
building and conversion markets for the
shipping and offshore sectors continue
to be challenging, the fi rst quarter of this
year has shown some signs of recovery.
After a worldwide lull in conversion
contracts in 2009, DDW-SEA won two
major contracts in January.
The fi rst is an upgrade from a crane
barge to an accommodation barge for
Leighton Offshore and the second is
a container ship to livestock carrier
conversion for a Saudi Arabian customer
Hamood Al Ali Al Khalaf Trading and
Transporting.
The list of newbuilding contracts
includes repeat business from Coastline
Maritime and Jack-Up Barge for the third
ultra-heavy lift construction support vessel
and the sixth Jack-Up Barge respectively.
Other newbuilding orders clinched by
the company include two dumb barges
for PT Kumala Barito Utara and a RoPax
Catamaran (designed by Sea Transport
Solutions of Australia) for an Australian
client Islands Transport Holdings.
The livestock carrier conversion is a
particularly high value contract worth more
than S$60 million (Dh157.9m) involving
some 5,500 tonnes of steelwork.
May 2010 Link 49