--- ANA - ?Jul 21, 2010?.

A draft bill to lift cabotage and allow non-EU flagged cruiseships to call at Greek ports was tabled in Parliament on Tuesday. The government anticipates that lifting cabotage rules will help develop maritime tourism in the country and also boost Greek firms linked to the sea cruise market.

The draft bill strives to make it possible for its provisions to apply during the current tourism period, with procedures designed to allow the signature of contracts between the state and shipping companies in just 30 days.

The draft bill regulates issues concerning the employment and insurance of Greek seamen hired on cruise ships, as well as collecting a special levy for each passenger to be paid into a seamen's unemployment and health fund, investments by shipping companies and terms for the extension or early termination of a contract. It also stipulates that the precise content of contracts will be decided through a joint decision of the finance and culture and tourism ministries.

For Greek seamen, it provides that they will work under the terms envisaged by the collective labour agreement for their sector and will continue to be insured with their current social insurance fund, in accordance with Greek legislature.

Early termination of the contract between the state and shipowner can be initiated by the state if a violation of the terms of the contract is observed, while there are also terms that allow the shipowner to initiate termination.

The draft bill stipulates that the ship carrying out cruises must transport more than 49 passengers and that the duration of the cruise must be at least 48 hours, with a minimum 12-hour stay in the port from which the cruise begins. They must also carry out a round trip, beginning and ending the cruise at the same port.

Other conditions for allowing vessels of third countries to call at Greek ports are that the country in question allows EU and EEA-flagged cruise ships to dock at its own ports and that they first sign a three-year contract with the Greek State. Concerning the special levy for each passenger, the bill provides that this will be reduced by 7 percent for every Greek port that the ship calls at during the cruise, with the exception of the port of embarkation.

Article four of the bill provides for the issue of temporary permits from the economy, competitiveness and shipping industry to shipping firms carrying out cruises until the contracts with the state are signed by December 31, 2010 at the latest.

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* Tuesday 20 July 2010 * by Nigel Lowry

No signs that bulk freight slump has weakened Greek owners commitment to spree of orders

THERE are no signs that the dry bulk freights slump of recent weeks has weakened Greek owners’ commitment to a spree of recently authored newbuilding projects, one of the country’s senior newbuilding experts has told Lloyd’s List.

George Banos of George Moundreas & Co said that price of contracts was a “very, very important” difference between the mentality now and the market melt-down that began in the second half of 2008, prompting many owners to fathom ways of cancelling orders penned at sky-high prices.

“Prices agreed this year are still seen as on the whole positive for the owner,” said Mr Banos. Average prices of newbuilding deals authored by Greeks in the first half of 2010 were about $55m for capesizes — compared with $100m-$110m in 2007-2008 — and about $35m for kamsarmaxes, for which there has been a surge of interest.

According to Mr Banos, any fears that certain projects might not be seen to conclusion stemmed from problems with issuance of refund guarantees, which pertained mainly to medium-sized South Korean yards, and from a liquidity squeeze at certain Greek banks.

“I believe a number of signed contracts might be at risk of cancellation but this remains to be seen,” he said. “But at the moment there is no trend towards cancelling.”

Mr Banos cited “a few cases” where owners had an immediate excuse for backing out of recent orders due to yards failing to produce refund guarantees within the specified period, which can be as little as two months after signing.

But the owners in such cases “are still sticking to their commitments,” he said.

Even though China has been cited by some as matching or even exceeding Korea in gaining shipbuilding contracts during the first half of the year, for the Greek market South Korean builders have so far retained their lead.

Moundreas’ tally shows Korean yards winning 77 of a total 121 ships ordered by Greek owners in the first six months.

The tanker sector was instrumental in maintaining Korean yards’ edge. Out of 22 tankers, worth $1.5bn ordered in the first half, only four Dynacom very large crude carriers were contracted in China.

Altogether Greek owners ordered almost $5bn worth of newbuildings in the first six months of the year.

Bulk carriers were dominant with Greeks ordering 93 bulkers at a cost of about $3.4bn.

Mr Banos said that owners had shown “some hesitation” in the last two or three weeks as concerns were stoked by the market slump and uncertainty over Chinese production.

---Michael Bodouroglou says shipping banks are returning to the game but are not willing to take the same risks as seen during the boom.

Syndicated shipping loans reached their lowest level in over six years during the second quarter with only $3.4bn handed out, figures from Dealogic show.

But speaking on the Capital Link Dry Bulk Webinar yesterday, Paragon Shipping boss Bodouroglou said: “Ship lending has become more normalised lately. There is more resemblance now to good old traditional ship lending.

“What this means is that banks are more cautious about who they lend to. We also see that banks are only willing to finance a smaller percentage of the acquisition price of the asset and loans are more expensive.”

Speaking on the same panel, Akis Tsirigakis of Star Bulk says there is a clear divide between public and private companies.

He said: “It takes longer to build banking relationships these days. The more established companies, like the public companies, do not have such a problem.

“But the very fragmented dry-bulk ownership, in the hands of family outfits, they will have a much more difficult time obtaining financing for new projects.”

Tsirigakis adds this restriction on lending contributes a “cleansing effect” as it will lead to more restraint in the ordering of newbuildings.

“We would like to avoid a repeat of the rampant ordering of the past,” he said.

Joseph Royce, CEO of TBS International, believes there has been an improvement in the availability of loans but banks are still very selective about who they deal with.

“As a result of this we are starting to see the Chinese take a more aggressive role in the financing of ships,” he said.

“We are just starting to see the beginning of what I feel is going to be a continuing trend where the Chinese, through the Chinese government and different banks, are going to look for ways to finance these newbuildings to keep the ships going.

“As the traditional banking sector continues to find its way, as the banks themselves start to have more confidence, I think the Chinese will give some owners another option.”

By Andy Pierce in London

Published: 13:35 GMT, 23 Jul 10 | updated: 14:01 GMT, 23 Jul 10

---The Restis group has entered the offshore sector after completing a takeover of Norwegian shipowner, Aries Offshore Services. The Victor Restis-led company bought the controlling interest from Mons Bolin and Gabriel Petridis' Aries Energy Corp for an unconfirmed $100m.

At the end of May it was reported Restis was closing in on the purchase of the Norwegian owner and its fleet of four platform supply vessels (PSVs), with a price of around $100m on the table.

Costas Koutsoubelis, cfo of the Restis Group, said in a statement: "We have been looking for an opportunity to enter the offshore supply shipping industry for some time, and view Aries Offshore as a platform for future growth within this shipping segment."

Per Ivar Fagervoll, ceo of Aries, which will continue to operate from Alesund, Norway, said the takeover will provide fresh capital for fleet expansion. It has been seeking investors for some time.

Petridis had acknowledged the offshore subsidiary was struggling after it became engaged in a costly legal fight when a charterer failed to pay its yard bill for extensive modifications to the 5,300dwt Aries Swan, built 2005, which led to the ship's arrest, and loss of earnings.

-- Filed: 2010-07-20

---(July 23 2010). Angeliki Frangou’s newly created vehicle -Navios Maritime Acquisition - is to purchase seven VLCCs for $587 mill.

The money to fund the purchases will be raised by taking on $453 mill in bank debt, another $123 mill will be in the form of cash and $11 mill through a share issue.

The final purchase price is subject to customary working capital adjustments, and consummation of the transaction is subject to a number of conditions, including third party consents, Navios said. The transaction is anticipated to close in September of 2010.

Angeliki Frangou, chairman and CEO said, "We are pleased to enter into this transformational transaction so shortly after having our original business combination approved. Only 90 days ago, Navios Acquisition was a concept.

“Upon closing this transaction, Navios Acquisition will control 20 tankers plus options to acquire two additional vessels. This acquisition alone will increase our fleet by almost 296% in dwt. Most importantly, with estimated annual base EBITDA of almost $75 mill, plus profit sharing, we anticipate the acquisition will be immediately accretive to our results.

"This acquisition represents a strategic expansion into the crude tanker sector. These new capabilities will increase our reach within the oil transportation industry and enable multiple cross selling opportunities. We also anticipate opening an office in Asia to facilitate these new relationships and take advantage of the emerging Asian markets,” she concluded.

Of the seven VLCCs, six are currently operating under long-term timecharters to Asia/Pacific-based shipping and petrochemical groups, including DOSCO (a wholly owned subsidiary of COSCO), a member of the Sinochem group, Formosa Plastics and SK Shipping.

The seventh vessel is currently under construction with delivery scheduled for June 2011.

The VLCCs have an average age of 8.6 and a remaining charter-out term of 8.8 years with an average timecharter rate of $40,440 net per day. Five of the seven charters come with profit sharing agreements.

The six vessels in service are – ‘Shinyo Splendour’, ‘C Dream’, ‘Shinyo Ocean’, ‘Shinyo Kannika’, ‘Shinyo Saowalak’, ‘Shinyo Kieran’.

Following this transaction, the 20 vessels will be contracted for 89.1% and 80.2% of their available days on a charter-out basis for 2010 and 2011, respectively.

S Goldman Advisors is acting as Navios Acquisition's sole financial advisor and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo and V&P Law Firm are acting as legal counsel.

---BULK SPECIALIST Paragon Shipping confirmed today that it has chartered its two new box ships to Chile’s CSAV.

NYSE-listed Paragon expanded into the container field earlier this month with the purchase of two newly built 3,400teu vessels from German yard HDW for a total of $98M. The vessels, to be named Box Trader and Box Voyager, will start two-year timecharters to CSAV in August and September, Paragon said today.

CSAV, which flirted with bankruptcy at the height of the shipping crisis, has more recently embarked on an aggressive charter-in strategy.

At last month’s Marine Money Week, Howe Robinson research director Paul Dowell said: “Since September 2009, CSAV has chartered in about 105 ships, bringing them up from 16th in the world rankings to 8th in nine months.” Dowell estimated that CSAV’s newly chartered-in capacity during the period was around 300,000teu.

Paragon CEO Michael Bodouroglou said the CSAV charters bring Paragon’s fixed revenue days in 2010 to 100% and in and 2011 to 92%.

Bodouroglou also announced that Paragon has sold its 1995-built Handymax bulker Clean Seas for an undisclosed price.

---Genco prices and upsizes despite Bernanke comments which sent market tumbling

Credit due Genco team and Deutsche led Bookrunners Genco Shipping and Trading priced their concurrent Convertible Senior Notes and Common Stock during a day which at first saw the US equity markets trading up until Fed Chairman Bernanke threw cold water on the prospects of economic growth midday, following which the NYSE and NASDAQ suffered dramatic and swift losses.

That the Convertible Senior Note transaction was upsized during this maelstrom by 10% and the issuance of 3.125 million shares of common stock was completed just a fraction below the day’s closing price is clear indication of the markets appreciation for Genco and its acquisition of both the Bourbon and Metrostar drybulk vessels.

It is also testament to the transaction execution accomplished by Deutsche Bank Securities, as left lead, BNP Paribas Securities and Credit Suisse Securities who acted as Joint Book Running managers for the offerings. Credit Agricole Securities, DVB Capital Markets, and Knight Capital Markets acted as co-managers for the offerings.

The convertible bond priced at the mid-point of the premium range at 22.5% and at the wide end of the coupon range at 5.0%. The equity deal priced at $16 a 1.1% discount from the last trade compared to an average discount of 5.3% for all follow-on YTD 2010. There was strong institutional demand for the offering from outright investors. For the equity portion only, institutional investors were 65% to 35% retail.

The net proceeds from these offerings will go to fund a portion of the aggregate purchase price for its previously announced acquisitions of 13 drybulk vessels from affiliates of Bourbon SA and five drybulk vessels from affiliates of Metrostar Management Corporation as well as for general corporate purposes.

The Company also announced yesterday two new loan facilities in the total amount of USD 353m with a tenor of between five and seven years and an interest rate of LIBOR + 3%. As per Q1 GNK had a USD 156.4m cash balance, which means the Company has sufficient resources to meet it's capex commitments.

It completes a winning week for Deutsche Bank Securities where Craig Feuhrer and his team completed 3 enormous capital markets transactions in just 7 days.

For the Peter Georgiopoulos originated Genco and the company team led by Gerry Buchanan and John Wobensmith, the transactions represent 31% of the predeal market cap and pushes forward a sudden burst of acquisition activity with an enormously competitive capital cost structure, modest dilution in a public model that has proven extremely powerful. The company will have a diversified drybulk fleet of 53 vessels representing a total DWT capacity of 3.8 million tons.

---By Charles Charalambous Published on July 23, 2010

ONE of the world’s biggest independent energy trading companies announced plans yesterday to build a major oil products import and distribution terminal in the industrial area of Vassiliko (Larnaca).

The Vitol Group – which in 2009 shipped 315 million tonnes of crude oil and oil products, turning over US$143 billion – announced that wholly-owned subsidiary Vitol Tank Terminals International (VTTI) is set to start work by early next year on a €100 million state-of-the-art oil product terminal facility at Vassiliko, with completion firmly planned in the second half of 2012.

VTTI CEO Rob Nijst said that this major foreign investment in the Cyprus economy will establish the island as a major oil trading hub in the region. The initial plan is to focus on storing and consolidating oil products for re-export to the region – which will involve VTTI obtaining a bonded licence from the government – with a view also to supply the local market.

Speaking at the press conference, Finance Minister Charilaos Stavrakis said that this was “a very special day for the Cypriot economy”, with the possibility of a further €100 million investment in the expansion phase of the new facility in the medium term.

Stavrakis said that the valuable foreign investment by one of the world’s biggest private energy companies was a further endorsement of Cyprus as an investment destination. He said that as well as offering the obvious economic benefit of some 1,000 jobs during the terminal’s construction and other new jobs to run it, the project involved introducing new technology to the island “which could provide a springboard for similar future investment”.

Asked about the government’s plan – announced in June 2008 – to build an Energy Centre in Vassiliko, comprising two terminals for petroleum products and natural gas, Stavrakis said that this plan and the Vitol project were quite distinct, as the government plan focused on satisfying domestic demand while latter primarily targeted re-exports.

However, he added, “if this group can in some way help us solve the energy problems and the challenges we are facing, to enable us to bring in natural gas either more cheaply or more quickly, and to perhaps increase competition in the domestic market, then depending completely on what the company itself decides, the government would view such a development positively.”

Another potential benefit for the government is that the new terminal facility could offer a cheaper solution for its EU obligation to maintain a minimum of 90 days’ stock of petroleum products. Cyprus currently maintains the bulk of its required stock in Greece.

The new Vitol terminal at Vassiliko will be 100 per cent owned, funded and operated by VTTI. Built to the highest possible safety and environmental standards and incorporating cutting-edge technology, it will have 20 tanks with a total capacity of 347,000 cubic metres of storage for petrol, diesel, jet fuel and fuel oil in the project’s first phase.

The tanks will be served by four to six jetties to be built one kilometre from the shore, allowing large sea-going tankers with a draught of up to 17 metres to deliver or load products.

Nijst told the Mail that Vitol had been investigating the eastern Mediterranean markets “for the last four or five years”, and had started discussions with the government on a possible investment in Cyprus some two years ago.

VTTI Chairman Chris Bake said that “it’s all about logistic supply”, allowing the company for example to consolidate small cargos arriving from the Black Sea into larger re-exports. In this respect, Cyprus will fulfil its promise of providing a connection between the Black Sea and Red Sea, or the eastern and western Mediterranean.

Vitol Group Director of Corporate Affairs Mark Ware added that most Middle East countries produce crude oil but are showing an increased demand for refined oil products, so countries like Jordan could go for the cheaper option of importing these from the Vassiliko terminal rather than investing in refinery infrastructure.

Referring to possible concerns over safety or risk to the environment, Nijst said that his company had submitted an environmental impact study to the government and had received official approval. He added that VTTI works “only to the highest international standards wherever we are. Whether we build a terminal in Nigeria, Canaveral (USA) or the Netherlands, it’s all according to the same standards, which are the highest possible for this industry.”

Nijst said that the advantages offered by a storage terminal include the capacity for consolidating smaller shipments, blending products to different specifications and targeting demand from particular local markets.

VTTI owns and operates a worldwide network of oil products terminals – in locations such as Rotterdam (Netherlands), Fujairah (UAE) and Port Canaveral, Florida (USA) – with a gross combined capacity of nearly 6 million cubic metres, which it aims to expand to 8 million cubic metres by 2013.

Parent company Vitol is a broadly-based group of complementary businesses, trading in commodities such as crude oil, natural gas, LPG/LNG and various oil products, as well as coal, power, chemicals, sugar. It also offers risk management and financial services, and is the EU’s largest trader in carbon emissions. In May this year, Vitol agreed to sell a 50 per cent interest in VTTI to leading Malaysian-based shipping company MISC, subject to final regulatory approval.