News AXS-Alphaliner News - Week 2008/ to

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1 AXS-Alphaliner News - Week 2008/ to AXS-Alphaliner News is a weekly summary of the latest liner shipping news compiled by Alphaliner and published daily on the AXS-Alphaliner website. It is ed every Monday night, and is available free of charge upon request, at our discretion. Information is given in good faith but without guarantee. Please send your feedback, comments and questions to data@alphaliner.com Note : rotations of services are usually not detailed in the present newsletter Please refer to the website to get full rotations, lists of ships deployed and service context. Grand Alliance launch EU 5 The Grand Alliance partners (Hapag- Lloyd + NYK + OOCL + MISC Bhd) today announced the implementation of a new service, ensured with eight ships of 5,500 teu, in order to cater for the growth of the Chinese mainland market. The EU 5 will call at Shanghai, Ningbo, Xiamen and Singapore before proceeding to Amsterdam, Hamburg and Southampton. The launch of the EU 5 is accompanied by alterations to the EU 3 and EU 4 loops : the EU 3 will omit Xiamen and the EU 4 will omit Ningbo. Both calls are covered by the EU 5. The first westbound sailing is planned in principle from Shanghai on 15 April with the 3,322 teu OSLO EXPRESS. Other ships to join include : NYK LEO (6,182 teu), WAN HAI 605 (6,039 teu - MISC), OOCL AMERICA (5,344 teu), BUNGA PE- LANGI DUA (4,469 teu), MISC MERLION (4,026 teu), META (2,732 teu - OOCL). Of note, the EU 5 will be the third deep sea service to call at the Amsterdam Ceres Terminal, controlled by NYK, on top of the GA's EU 1 and EU 2 loops. A first attempt to launch an EU 5 loop was made in October 2007, thwarted by the winter lows. NWA / CMA CGM launch MED The New World Alliance (TNWA) carriers (APL, HMM, MOL) and CMA CGM today announced a new joint Far East-West Mediterranean service, using eight ships of 4,000-4,500 teu, six of which provided by TNWA partners and two by CMA CGM. The service will take off on 26 April with the sailing from Shanghai of the 5,085 teu CMA CGM CHATEAU D'IF, followed by the MOL FORTUNE (2,887 teu) and MOL GOLDEN WATTLE (2,689 teu) (probably temporary ships while awaiting larger units deployed through cascading or newbuildings). The MED will call at four Chinese ports (Shanghai, Ningbo, Hong Kong, Chiwan) before proceeding to Singapore and Port Kelang, and then to Damietta, Genoa, Barcelona and Fos. It will come back to China via Damietta, Jeddah, Port Kelang and Singapore. The two Damietta calls mean that the MED will cater for eastern Med as well, while containers to/from other Asian ports can also be interchanged there between various long haul services to offer extra port pairs between Asia and the West Med. The MED service will bring to NWA partners its long-awaited own FE-West Med loop. Instead, NWA partners have been offering such a service for the past two years through slot buying on the Grand Page 1 of 9

2 Alliance FE-Med loop (EU M), within the frame of a wider agreement between NWA partners and GA partners. The MED will also add to NWA involvement in the Far East-Eastern Mediterranean & Black Sea service (EBX) launched last November in partnership with Hanjin and UASC. The MED service will allow CMA CGM to fill the gap left by its recent departure from the FE-West Med service operated jointly with COSCO. It will add to the existing Med-Asia Express service (MEX), which also covers the West Med. The MEX is ensured with eight ships of 5,770 teu. This service is to be altered as a result (See related news in this newsletter). Evergreen opts for butterfly loop on Asia-US Evergreen Line is to revise its China- Taiwan-US services. It is to merge two services, the TPS and CPS within a butterfly service combining two successive loops (AUS + CPS), employing nine ships of 5,000-7,000 teu (instead of ten ships for the two separate services). However, Tacoma, which is served with the TPS, is not covered by the new service and it will be instead added to the HTW sling at the expense of Oakland. This latter port is covered twice by the new AUS-CPS service. The new pattern allows saving one ship. Globally, the port coverage remains unchanged while the capacity moves up by only a pinch as the new pattern allows to discharge the smallest ship, the 2,868 teu ARAMIS, which was the only unit under 5,000 teu under the former pattern. Interestingly, this initiative is similar to the move carried out in June 2007 by CKYH partners, with the creation of the PNW North + South Butterfly Loop. In a separate development, Evergreen is to remove the Japanese calls from its NUE Pendulum, further to the launch of the Japan-LA service (JAS - jointly with NWA), while China coverage is expanded : the Asian range ''Tokyo, Osaka, Shanghai, Busan, Osaka, Nagoya, Tokyo, Shimizu'' is replaced by the range ''Ningbo, Shanghai, Qingdao, Busan". CMA CGM adds chartered VLCS on new TP loops CMA CGM has chartered the 8,468 teu CSCL AFRICA to fulfill its commitment on one of the two new 8,000+ teu transpacific loops launched jointly by Maersk Line, CMA CGM and MSC in replacement of existing services. Renamed CMA CGM AFRICA, the ship will join the VSA Loop 2, branded 'Bohai Rim' loop by CMA CGM. She will run alongside four MSC ships of 8,000-8,200 teu. The CSCL AFRICA will be replaced by the brand new 8,530 teu XIN MEI ZHOU on the Asia-Europe CSCL s AEX-1 service. CMA CGM will provide the brand new 9,661 teu CMA CGM ORFEO to the VSA Loop 1, alongside with four 8,500 teu Maersk ships. The CMA CGM ORFEO, first of four 9,661 teu ships chartered from Reederei CP Offen, will run alongside four Maersk ships averaging 8,500 teu. She will become the largest ship deployed on the Pacific. MISC joins Maersk on NZ MISC Berhad has entered into a Memorandum of Understanding with Maersk Line to collaborate in a Vessel Sharing Agreement (VSA) on the SEA Asia-New Zealand trade, starting on 09 June The service involved is the existing Maersk Line's New Zealand relay loop 1, ensured currently with four Maersk Line ships of 4,100 teu. MISC will provide one of the four ships. The NEZ A connects Tanjung Pelepas and Singapore to Brisbane, Auckland and Port Chalmers. Page 2 of 9

3 MISC says that the collaboration will provide its customers with faster transit times and enhanced port coverage of Auckland on the North Island and Port Chalmers for South Island customers. Currently, MISC is a partner in the New Zealand Express (NZX), jointly operated with PIL, MOL, OOCL and NYK, and involving two weekly loops. MISC will retain its partnership in the NZX arrangement along with this newly formed cooperation with Maersk Line. Interestingly, it is recalled that MISC Bhd has signed a MOU last February with Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) to set up a joint-venture company to manage a dedicated container terminal at Tanjung Pelepas, an initiative which could lead this Malaysian port to be a regional hub for the Malaysian national carrier. Hamburg Süd to assign 3,600 teu ships on WCSA Hamburg Süd is to inject 3,600 teu ships on the Far East-WCSA run, in replacement of 2,500 teu ones. The ships involved are 3,630 teu gearless units displaced from the Far East-ECSA run, on which a new set of services is to be implemented, using 5,500 teu ships. The 3,630 teu ships displaced will join the Asia-WCSA service (ASPA 2 / NAX - run with nine ships), one of two FE-WCSA loops that Hamburg Süd operates in partnership with CCNI (the other loop being ASPA 1 / CEX - operated with 2,500 teu ships). CCNI already deploys a trio of 3,091 teu ships (B geared) on this loop. A first 3,630 teu ship, the BAHIA CASTI- LLO, has just been introduced (displaced from the FE-ECSA run by the 5,900 teu newbuilding RIO DE LA PLATA). She replaces the 2,456 teu CAP SALINAS. She will be followed by the BAHIA NEGRA (around 1s June) and BAHIA BLANCA (around 1st July). Of note, these ships will be the first gearless ships introduced on these services (apart from a parenthesis in 2003 when a few 1,500 teu gearless ships were used by Hamburg Süd in the aftermaths of the takeover of the Kien Hung services, these gearless ships serving only selected ports fitted with shore handling gear - See the website for details). Various Lines News Further to the closure of the CMA CGM- CSCL joint North Europe-USEC service (Liberty Bridge / EAX), CSCL continues to cover the Europe-New York-Norfolk trade through a slot allocation on the relevant leg of the Evergreen's NUE pendulum (under appellation EAX 1). It is understood that CSCL slot allocation stands at 200 teu per week. Charleston, which was covered by the EAX, remains however covered with the CMA CGM- CSCL North Europe-US Gulf service (Victory Bridge / EAG). It is recalled that CMA CGM continues to serve the trade through a slot charter agreement with Maersk Line on this carrier's TA-3 service. Maersk Line announced changes to its West Med-US East Coast service, ''allowing vessels to run at an optimal speed and thereby preserve schedule integrity'' (it appears the service will turn in 7 weeks instead of 6, with a seventh ship added). Livorno will be included while Valencia will be dropped, and served via Algeciras instead. This trade is until now served with six ships of 4,000-4,200 teu. The additional (7th) ship is likely to be the SEA-LAND QUALITY, currently believed in general repairs. Transhipment at Algeciras allows to connect West Med with the US Gulf, using the MECL 2 CMA CGM and CSCL have added direct calls at Qingdao and Ningbo to their East Asia-Mexico-Caribbean-NCSA joint service (PEX 2). The PEX 2 thus covers five Chinese ports : Qingdao, Shanghai, Ningbo, Chiwan and Hong Kong, then Page 3 of 9

4 continuing to Busan. At the other end of the route, it continues to serve Ensenada, Manzanillo (Mexico), Manzanillo (Panama), Kingston, Caucedo and Puerto Cabello. In order to maintain the weekly frequency, a ninth ship will be added. The PEX 2 was until now run with eight ships, seven of which provided by CMA CGM and one by CSCL. Deliveries of 4,000+ teu newbuidlings allow Yang Ming Line to bring back its transpacific PSW-4 loop to its normal fleet of five 3,600-3,900 teu ships. During the past ten months, Yang Ming covered one of the sailings with two ships of 1,800 teu working hand in hand as if a single ship, the 1,800 teu YM INTERAC- TION and YM IMMENSE, as a result of a big ship shortage. The delivery in a few days of the 4,250 teu YM EMINENCE will push out from the FE-USEC 'AWE 3' service the 3,916 teu YM YANTIAN, who will replace the two small ships on the PSW- 4. As a result of the above move, the YM INTERACTION and YM IMMENSE will join intra Asia services, pushing out two chartered 1,500 teu ships who are expected to be redelivered as their charters are to expire, the 1,504 teu YM IZ- MIR (alias MONTANIA) and the 1,524 teu YM OKINAWA (alias NORDLAKE). CMA CGM is to alter the rotation of its Med-Asia Express service (MEX), with the addition of calls at Lianyungang and Xiamen, while Ningbo is removed (Ningbo will be covered with the new MED loop - See related news). Hapag-Lloyd has added Far East-Eastern Med-Black Sea sailings as it joins as coloader the EBX service, operated by NWA partners, Hanjin and UASC. It completes the coverage offered by Hapag-Lloyd with the Grand Alliance Asia-Black Sea loop (ABX). Hapag-Lloyd, RCL, TSK and HMM are to launch the 'India-China Service' (ICS / RCI), a new service connecting four Chinese ports (Xingang, Qingdao, Ningbo, Shekou), Singapore and Port Kelang to Mumbai-Nhava Sheva and Pipavav. Five ships of around 2,700 teu are to be employed. TSK will provide two of them and the three other partners one each. The first sailing should occur on 28 April with the 2,686 teu SKY JUPITER, provided by RCL. Of note, TSK will deploy on this service the ACX DIAMOND, first of a newbuilding trio it ordered at the STX shipyard in June The ICS adds to a series of new services and of service enhancements on the FE- India-ME sector, which will see the FE- India-ME capacity to increase by 14% over 6 months, according to Alphaliner figures. RCL, Wan Hai and Sea Consortium are believed to revise their 'Korea-China- Straits India service' (KSI / RKI -), run with five ships averaging 1,790 teu. This service is understood to be superseded by the 'Central China-India service' (CCI), run with five ships of around 2,500 teu, including the WAN HAI 317 (2,646 teu, WAN HAI 305 (2,495 teu), URU BHUM (2,588 teu) and VIRA BHUM (2,588 teu). The new loop is expected to provide a similar coverage, except that it omits Busan. It will then focus on the China-India trade. Having joined the Far East-Middle East- Pakistan 'FMS' service as slot buyer two months ago, KMTC is to bring in a ship in its name, the 2,564 teu CITY OF XIA- MEN, a chartered newbuilding under fitting out at the Xiamen shipyard for the account of Manfred Lauterjung. The FMS was launched in November 2007 by Hanjin in partnership with Heung-A, STX- Panocean and Sinokor. Orient Shipping Services' India-Gulf loop (IPG) lately quit calls at Ras Al Kaimah, a port on the Strait of Hormuz, and shifted to Gulftainer s Sharjah Container Terminal (SCT) at Dubai. The maiden call at SCT was performed by the 1,022 teu HARMONY. The second vessel employed on the service is the roughly Page 4 of 9

5 similar-sized KAPITAN BIYANKIN. Both ships maintain a weekly connection between the Gulf region and India, also calling at Muscat, Karachi, Mundra and Mumbai-Nhava Sheva. In the UAE, Jebel Ali is served as a second port in addition to Sharjah. With Hapag-Lloyd and Hanjin leaving the North Asia-China-Australia service (NCA), Evergreen Line was left alone on this joint operation. It has decided to continue to serve in solo the East Asia- Australia trade, with the 'Taiwan-China- Australia Express' (TCA). The TCA will connect Kaohsiung, Ningbo, Shanghai, Yantian and Hong Kong to Melbourne, Sydney and Brisbane. Evergreen used to provide three of the five ships of around 1,600 teu that were deployed on the NCA. These three ships (owned) will join the new TCA, together with two chartered ships of 1,850 teu, the NINA RICKMERS and ARUNI RICKMERS. The new China-Korea-Australia service (CKA) to be launched next month by Hanjin Shipping, STX Pan Ocean, Heung- A Shipping and Sinotrans will be run with the five following ships, according to Aphaliner sources : HANJIN HO CHI MINH (1,708 teu - Hanjin - chartered), HANJIN BELAWAN (1,708 teu - Hanjin - chartered), OCEAN ARROW (1,713 teu - Heung-A - chartered), OCEAN EMERALD (1,713 teu - STX-PO - chartered - newbuilding), HANSA LAUENBURG (1,740 teu - chartered - Sinotrans - sublet from CSCL). CSCL has taken out one of the two ships it deploys on the Europe-ECSA service jointly operated with Evergreen, Maruba, CSCL and K Line. The 2,672 teu CSCL FOS is sent on the CSCL's Asia-Africa service, which was left with a single ship, the 1,799 teu OCEAN HOPE, after the withdrawal of the 1,740 teu HANSA LAUENBURG, sublet to Sinotrans. She was due to be replaced by the similar HANSA LIMBURG, freed up by the closure of the CMA CGM-CSCL joint North Europe-USEC service, but operational matters seem to have directed this latter one on the Zim-CSCL Europe-West Africa service. The Europe-ECSA service is for the time being run with five ships instead of six ships. Cuban operator Melfi Marine has reorganized its feeder service connecting Havana, Cristobal and Mexico. Two loops are now offered therefore : a main service connecting Havana to Santiago de Cuba and to Mexico and a Havana- Cristobal (Panama) loop. A fourth ship has been added to this effect, the 698 teu AEGIR. The main loop is ensured by three ships of around 700 teu, the AE- GIR, MELFI VENEZUELA and MELFI CA- RIBE (alias CONEAST ex ACCORD D.). The Havana-Cristobal loop is ensured with the 518 teu AGAMAN. These two loops connect at Havana with the Melfi Med-Canada-Cuba service (on which EWL takes slots). Delmas (subsidiary of CMA CGM) has brought modifications to two of its Europe-West Africa loops : the Full roro service (with Conakry added) and the container service Loop 2 (with Conakry removed). Delmas also uses its roro service to offer inter Africa services for rolling stock, on its Africa range, covering Dakar, Conakry, Abidjan, Pointe Noire, Port Gentil, Libreville, Douala, Takoradi, Abidjan and San Pedro. Corporate Hanjin Shipping today announced that it is merging with one of its subsidiaries, Keoyang Shipping, effective 29 May. Keoyang Shipping specializes in dry bulk business and its major source of income lies in the transportation of iron ore and coal for POSCO, KEPCO and their affiliated companies. Hanjin Shipping states that this merger with Keoyang Shipping is part of its mid/long-term plan to expand its bulk business, which is now around 20% of the company s total sales. Page 5 of 9

6 The German press reports that the Russian billionaire Alexei Mordashov reportedly doubled his holding in TUI. Mordashov, who supports John Fredriksen s plan to split Hapag-Lloyd s liner operations from TUI s tourism activities, now controls 10.03% of the Hanover-based group through his strategic investment vehicle known as the S-Group. He is known to be one of the driving forces behind TUI s plans to become a major player in the Russian travel market. In this context he claimed that TUI's plan to divest shipping is in shareholders' best interest. At the same time, most analysts doubt that the Hamburg government s plans to build a coalition of local buyers for Hapag-Lloyd will eventually be successful. TUI meanwhile still considers whether to part from Hapag-Lloyd via a spin-off, a merger or a sale to an investor. Deliveries CSCL is to receive the 8,530 teu XIN MEI ZHOU, third of five sister ships ordered by CSCL at the Hudong-Zhonghua Shipbuilding (Group) Co Ltd (aka Hudong Shipyard) in October The XIN MEI ZHOU will join the CSCL's FE-Europe 'AEX-1' loop, replacing the 8,468 teu CSCL AFRICA, who is to join CMA CGM (See related news above). The XIN MEI ZHOU follows the XIN OU ZHOU and XIN YA ZHOU, also employed on the AEX-1. 'Mei Zhou' is the Chinese appellation for 'America', echoing the name 'Ya Zhou', meaning 'Asia', and 'Ou Zhou', meaning 'Europe'. Hyundai M.M. (HMM) is receiving last week and this week the HYUNDAI DY- NASTY and HYUNDAI VOYAGER, fourth and fifth of a series of eight 4,728 teu ships ordered at Hyundai H.I. in two steps. Both ships are assigned to the HMM's FE-USWC 'PCX' service. They displace, directly or indirectly, 4,650 teu ships which are sent on HMM's Korea- East Asia-Middle East service (KMS), in replacement of 2,174 teu ships. German owner Klaus Oldendorff has received the NORDAUTUMN (3,586 teu), third of four sister ships ordered by this owner in March-August 2004 at the STX Shipyard, and seventh one in the 'STX 3500' series. The NORDAUTUMN is to join her charterer CMA CGM, which assigns her to the East Asia-Mexico- Caribbean-NCSA joint service (PEX 2 - operated jointly with CSCL). The NOR- DAUTUMN follows the HS CHOPIN in the 'STX 3500' series, delivered in September Reederei O. Marten GmbH & Co KG has received the two 2,015 teu ships it bought on the stocks earlier this year from the Zhejiang Shipbuilding Co, after the cancellation of this order by Münchmeyer & Petersen (MPC), linked to heavy delays and alleged technical problems. Their CMA CGM charter fell at the same time. The two ships, which were known in the MPC fleet as RIO SUSA and RIO SACRAMENTO, have been delivered as the O.M. AGARUM (in March) and O.M. IRIDIUM (this week-end). The O.M. AGARUM has been chartered by PIL for a round voyage on the PIL's East Asia-South & West Africa service (SWS / WA 3 - with MOL as slotter) while the O.M. IRIDIUM has been fixed by TS Lines for employment as TS MUM- BAI on the - China Straits India service (CSI), operated by Samudera, Evergreen, Yang Ming, STX-Pan Ocean and TS Lines, replacing the 1,679 teu TS LAEM CHABANG, who joins the Korea- China-Straits service (KMS). Leonhardt & Blumberg has received the H AUGSBURG, a 1,732 teu ship of the 'Flensburg / Wenchong 1700' class, built in China by the Wenchong Shipyard. She has joined her charterer NileDutch Shipping (NDS) which has renamed her NI- LEDUTCH TIANJIN. She is assigned to the NDS China-SE Asia-West Africa service. The H AUGSBURG is the 38th ship delivered in the 'Flensburg' series, inaugurated eight years ago. Page 6 of 9

7 German owner Hermann Buss has received the 1,296 teu MEDONTARIO, 13th of 18 ships ordered by Buss and Thien & Heyenga at the Ouhua Shipyard (Euro- China Shipyard), located in the Zhejiang Province. She has been chartered by K Line which has assigned her to its Singapore-Fremantle service ('Fremantle Express'), replacing the 1,730 teu WEHR BLANKENESE. This latter ship is to join the MOL-K Line 'New Andes 2' service. German owner Carsten Rehder has taken delivery of the DEVON STRAIT, a 1,118 teu vessel built by Jinling Shipyard of Nanjing, China. The ship is presently underway on its positioning voyage, carrying a load of yachts from Hong Kong and Taiwan to the Caribbean. The DEVON STRAIT has been chartered by Miamibased King Ocean Services, who will employ her in its services between Florida, ECCA and NCSA The DEVON STRAIT brings to 79 the number of 'CV 1100' units built since the launch of the first one some six years ago. Appen Capital GmbH & Co KG has received the APPEN CHARLOTTE, a 1,043 teu ship built in Korea by the Daesun shipyard, purchased from Greek owner Cosmoship. She has been chartered by Sea Consortium for assignment to the Taiwan-Indonesia service (TIS), replacing the 966 teu HOHERIFF. She is the 19th unit built in the 'Dae Sun 1000' series and follows the APPEN ANITA, delivered in March. German owner Ludwig Rass has received last week the HOHEFELS, a 966 teu ship built in China by the Zhejiang Yangfan Shipping Group (former Zhoushan shipyard). She is proceeding to Europe where she is to join the CMA CGM network. The HOHEFELS is the 19th unit in a series of cellular ships of teu. PIL has received the 938 teu KOTA RA- KAN, sixth of a series of ships built by the Shin Kurushima shipyard (Japan) since She is in principle assigned to the PIL-ACL's Singapore-Chittagong feeder shuttles. Terminals Hamburg The first unconfirmed details of the coalition contract between the Hamburg s green party and the conservatives have leaked to the public: presently, things point towards the green party giving up its opposition against a further dredging of the river Elbe: the environmentalists hitherto strongly opposed the plans of Hamburg s government to add another meter of clearance to the river Elbe fairway and thus improve the port s seaward accessibility. According to local press reports, the conservative party agreed to a more comprehensive package of compensatory measures than originally planned. This means that the dredging work might go ahead as scheduled, provided the environmental risk assessment does not come up with any unexpected results. The port of Hamburg can currently be accessed by vessels with a maximum draught of about to 15 meters, depending on the vessel s size. Deepdraft vessels are limited to two tidal windows per day. The port s maximum permissible draught at low tide is meters. The planned dredging will add about one meter of additional clearance. It will put the port in the position to accept the new breed of Ultra-large container ships: either fully laden on the flood tide or in a slightly lightened condition throughout most of the tidal cycle. Tangier Phase 2 The Eurogate-led consortium that will operate container terminal number two in Morocco s new Tangier Med port recently took delivery of five supersized gantries. The new facility has thus taken another step toward its inauguration, which is scheduled for September. The ZMPC-built cranes arrived on board the Chinese transporter ZHEN HUA 11. They have an outreach of 23 rows of contain- Page 7 of 9

8 ers enough to serve any present-day container ship. The Tangier Med project foresees the creation of three adjacent large ports: two for cargo vessels and one for passenger ferries that will shuttle the Gibraltar strait. Tangier Med harbours two container terminals : > Tangier Med 1, granted to APM Terminals and its local partner, the AKWA Group (in service since July 2007). > Tangier Med 2, awarded to Eurogate-Contship Italia (40%), MSC (20%), CMA CGM and its Moroccan subsidiary CoMaNav (40%). Both facilities will be of roughly similar size : each will dispose of an 800-metrequay with 18 meters depth alongside and each will have a annual capacity of about 1.4 Mteu. Apart from serving the Moroccan market, Tangier Med mainly aims at transhipment cargo on services between Northern Europe and the Far East as well as on Suez-routed services between America and Asia. Of note, MSC may well shift there some of its west Med-based transhipment activities, currently ensured through Valencia and Gioia Tauro, especially as it is awaiting a series of eight ships of over 13,000 teu with a breadth of 20 rows, to be injected in on the Far East-Europe route. Vietnam : Cai Mep According to Vietnam press reports, local company Gemadept is to set up a joint venture with CMA CGM, named Terminal Link Cai Mep Terminal Joint Stock Co, to build a deep-water container terminal at Cai Mep, near Ho Chi Minh City. The provincial authority has recently issued an investment certificate to Gemadept in this respect. The joint venture comprises Gemadept Vung Tau (49.37%), VNM General Transport Services Co., Ltd. (0.63%) and Terminal Link (50%). Terminal Link is a division of CMA CGM. The new Cai Mep terminal could be operational in 2010, allowing large ships to call in Vietnam for the first time. The Vietnam trade is currently wholly feederised as the country's terminals cannot accommodate ships of over 2,000 teu. EXHAUST GASES MARPOL RULE : The end of high sulphur fuels? The Marine Environment Protection Committee (MEPC) of the IMO has approved proposed amendments to the MARPOL Annex VI regulations to reduce harmful emissions from ships. The main changes would see a progressive reduction in sulphur oxide (SOx) emissions from ships, with the global sulphur cap reduced initially to 3.50% (from the current 4.50%, effective from 1 January 2012) then progressively to 0.50%, effective from 1 January 2020, subject to a feasibility review to be completed no later than The limits applicable in Sulphur Emission Control Areas (SECAs) would be reduced to 1.00%, beginning on 1 March 2010 (from the current 1.50%), being further reduced to 0.10 %, effective from 1 January Progressive reductions in nitrogen oxide (NOx) emissions from marine engines were also agreed, with the most stringent controls on so-called ''Tier III'' engines, i.e. those installed on ships constructed on or after 1 January 2016, operating in Emission control Areas. In the current Annex VI, there are two SECAs designated, namely, the Baltic Sea and the North Sea area, which also includes the English Channel. > Note : sulphur oxyde emissions are directly linked to the sulphur contents of fuel oils - Currently, deep sea ships re- Page 8 of 9

9 main the only 'medium' to burn the high sulphur content residual fuel oils which gather up at the 'bottom' of the refining process (shore uses are prohibited for these sulphur laden fuel oils). The ''desulphuration'' will lead to costlier bunker fuels. Nitrogen oxide emissions are inherent to the combustion process itself and can be disposed of through NOx removal modules placed in the exhaust gas stream. Page 9 of 9