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Hyundai Heavy Industries Builds Largest Virtual Simulation Center in the Industry

Hyundai Heavy Industries built the largest virtual simulation-based verification facility in the industry.  Hyundai Heavy Industries recently announced the opening of the Hardware-in-the-Loop Simulation (HILS) Center for virtual simulation-based verification at the headquarters in Ulsan City with the participation of chairman Choi Gil-sun and president Kang Hwan-ku among others. HILS is a technology that diagnoses and verifies design errors and malfunctions by simulating complex systems mounted on ships, offshore plants, automobiles, aircraft, spacecraft, etc. in various virtual environments. The HILS Center, built on a floor of 215 square meters inside General Research Building at Hyundai Heavy Industries’ headquarters, is equipped with nine kinds of HILS equipment in three areas &#...

ICS Calls On IMO to Delay Implementation of BWMC for Existing Ships

The International Chamber of Shipping (ICS)  has urged the International Maritime Organization (IMO) to back the proposal from a broad coalition of governments that would result in postponing the implementation dates for installing new ballast water treatment systems.   “If this pragmatic proposal is agreed, this would allow shipping companies to identify and invest in far more robust technology to the benefit of the marine environment,” said ICS Secretary General, Peter Hinchliffe. ICS says that this IMO decision on dates, to be taken by a meeting of the Marine Environment Protection Committee during the first week of July – just two months before the entry into force of the IMO Ballast Water Management (BWM) Convention on 8 September 2017 – will be critical, having significant implicatio...

Hyundai Heavy Industries Ushers in Era of 4th Industrial Revolution in Shipbuilding Industry with Integrated Smart Ship Solution

Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, announced today it developed Integrated Smart Ship Solution (ISSS), its proprietary ICT technology capable of realizing economical and reliable navigation and management of ships. ISSS is the first of its kind in the global shipbuilding industry. The solution standardizes ways of navigation varying depending on levels of skills and experiences of navigators, collects and analyzes real-time information on navigations, and thus will play a role in enhancing efficiency and safety of ships. The solution is expected to cut annual operating cost by 6%. As IMO will introduce e-Navigation, a strategy to bring about increased safety of navigation in commercial shipping through better organization of data on ships by 2019, the demand f...

Rolls-Royce Inks Service Deal for 74 Vessels

UK-based engineering company Rolls-Royce has signed a three-year service agreement with Siem Offshore and Subsea 7 covering a total of 74 offshore vessels. Under the deal, Rolls-Royce will maintain and service all of the equipment it has delivered to the two companies’ offshore vessels. “We have delivered equipment to around a quarter of the world’s registered fleet. As a result, we also have service assignments and long-term agreements with a large number of ship owners globally. We also have a network of service stations at 34 locations world-wide, so we can be close by whenever equipment needs servicing or repair,” Knut Hovland, Rolls-Royce, Director, Marine Services, said. At present, aftermarket services account for roughly 40 per cent of Rolls-Royce Marine’s revenues. Long-term agree...

Korea-Japan Consortium Signs Basic Contract on Oil Refinery Project in Iran

Aconsortium including Daelim Industrial and Hyundai E&C, has signed a basic contract to push forward with an oil refinery project in Siraf, Iran. According to state-run IRNA News Agency of Iran on July 17, the Korea-Japan consortium consisting of Daelim Industrial, Hyundai E&C, and Chiyoda of Japan, signed an HOA on the construction of a US$ 3 oil refinery project in the Siraf area, Bushehr Province of Iran. An HOA refers to a basic contract for the main conditions for project implementation which has a pre-contractual nature. An HOA is likely to lead to the main contract but does not mean that the order has been confirmed. The project will be conducted by the Export Credit Agency (ECA) method. The cost of the project will be paid by the ECAs in Korea and Japan and the ECAs will re...

IG Club Enjoying Over 80% Share in Korean Marine Insurance Market

According to the Korea Shipowners’ Mutual Protection & Indemnity Association (Korea P&I Club), the South Korean marine insurance market is currently US$150 million to US$170 million in size and the share of the IG Club, a global group of hull insurers, is as high as 80% in the market with the Korea P&I Club, which is the only South Korean hull insurer, behind it. This can be attributed to a business practice. South Korean law firms have written the IG Club as an insurer into their ship finance contracts for long. In this regard, the Korea Shipowners’ Association recently asked the local ocean shipping industry and major local law firms to include the Korea P&I Club in their ship finance contracts. The club is made up of multinational members from Britain, Norway, Sweden, et...

Samsung Heavy to reduce workforce

Samsung Heavy Industries Co. is seeking to cut its workforce and have employees return part of their salaries in order to cut costs, industry sources said Tuesday. Last year, the major South Korean shipyard unveiled a self-restructuring program that centers on cutting the workforce and having executives return part of their salaries, in order to tide over a protracted slump in the shipbuilding sector. Samsung Heavy was forced to reduce its workforce by 1,500 in 2016 through an early retirement scheme. The shipyard aims to slash its workforce by a total of 5,000 by 2018. The shipyard won $4.8 billion worth of orders to build 13 ships, including two offshore plants, in the first six months of the year. The company also expects to win a $1.5 billion deal to build 12 articulated tug barges. Sa...

Nisshin Shipping In for Up to Seven Panamaxes

Japanese shipping company Nisshin Shipping has been linked to an order for up to seven 82,000 DWT bulkers at China’s Jiangsu Hantong Ship Heavy Industries. The fleet modernization deal, dated last week, comprises five firm orders plus two options, according to the data provided by VesselsValue. The firm Panamax bulkers, valued at USD 24 million a piece, are scheduled for delivery in 2018, while the optional units would be handed over in 2019. Including the latest order, the company has 16 newbuilds on order: five chemical tankers at compatriot Usuki Zosensho, four LR1 tankers at Korea’s Sungdong Shipbuilding and Marine Engineering, and two more bulkers at China’s Jiangsu Hantong and Jiangmen Nanyang, respectively. Out of the above total, six ships are to join Nisshin’s fleet by the end of ...

Daewoo Shipbuilding wins order for 4 oil tankers

Daewoo Shipbuilding & Marine Engineering Co., a major shipyard here, said Friday that it has clinched a deal to build four very large crude carriers (VLCCs). Under the deal with Maran Tankers Management, a unit of Greece’s largest shipper, Angelicoussis Shipping Group, Daewoo Shipbuilding & Marine Engineering Co., will deliver the 318,000-ton vessels by Aug. 20, 2019, the company said in a regulatory filing. The vessels, 336 meters long and 60 meters wide, will be powered by eco-friendly and fuel-efficient engines, the shipyard said. Daewoo Shipbuilding did not reveal the value of the latest deal. The Greek shipping firm is one of the major customers for Daewoo Shipbuilding, with a total of 17 ships under construction for Angelicoussis at the yard’s operations in South ...

Korean Oil Refiners’ Margin Hit This Year’s High

It has been found that South Korean oil refining companies’ refining margin recently hit this year’s high based on an increasing demand for diesel in China and Europe. For instance, the Singapore gross refining margin reached US$7 per barrel in the first week of this month. Previously, the refining margin fell from US$6.9 to US$5.8 per barrel between January and March this year and moved between US$6 and US$6.9 in the second quarter, raising concerns over a decline in their operating profits. Besides, the international oil price dropped from over US$50 to US$40 or so per barrel in June. This month, however, the refining margin rebounded although the oil price is still low. This is because the diesel refining margin raised the gross refining margin based on the increasing demand in Europe a...

Delay of ballast water convention has contrasting effect

South Korea’s shippers and shipbuilders reacted differently Wednesday to a decision by the International Maritime Organization (IMO) to delay the implementation of a ballast water convention. The IMO’s marine environment protection committee last week postponed the International Convention for the Control and Management of Ships’ Ballast Water and Sediments, or the BWM Convention, for two years. The pact will go into effect in 2024 instead of 2022. The convention requires all vessels plying internationally to be equipped with a system to clean their ballast water before releasing it into the ocean to prevent the transfer of alien marine species, such as bacteria and microbes. Local shipping companies have been concerned about the cost of system installation, which the Kor...

Hyundai Merchant Marine Signed MOU with Saigon Newport Corporation

Hyundai Merchant Marine (HMM) announced on July 9 that it signed a memorandum of understanding (MOU) with Saigon Newport Corporation on July 6 in order to work with the company for port development. The signing ceremony was held at the Cat Lai Terminal located in Ho Chi Minh, Vietnam and attended by more than 30 persons, including Saigon Newport Corporation president Nguyên Đăng Nghiêm and Hyundai Merchant Marine CEO Yoo Chang-keun. The MOU is expected to lead to a close cooperation between the two companies in projects covering freight logistics facilities in Vietnam such as port terminals and container depots. At present, Hyundai Merchant Marine is running four marine transportation routes between South Korea and Vietnam, The number is expected to increase based on the MOU. “Our shipment...

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