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Since 1983 Wirana is the OLDEST and LEADING Cash Buyer of Vessels for Recycling. Sells to ALL markets such as India, Pakistan, Bangladesh, Turkey and North and South China. Wirana has so far successfully negotiated in excess of 2200 ships earning it a place twice in the Guinness Book of World Records for two ULCCs that had a combined LDT in excess of 148, 691 Wirana is your ONE-STOP SHOP for ship recycling needs where size, type of ship, location, payment are no constraint Wirana has been a ardent proponent of green ship recycling promoting the Green Agenda at various forums and enlightening the world about Green Recycling. Members of Wirana have been part of the deliberations leading to the IMO s Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships. MARINE MONEY SINGAPORE 2014 2
Within the ship recycling industry, companies such as Wirana are called CASH BUYERS. A Cash Buyer purchases a vessel for Cash from an owner and re-sells it to a recycling yard. Cash Buyers are the middlemen in the sale of ships for recycling. Cash Buyers are NOT brokers. Unlike brokers they take TITLE to the ship. MARINE MONEY SINGAPORE 2014 3
The five major markets in the world: India, China, Pakistan, Bangladesh and Turkey The subcontinent accounts for between 70-80% of the recycling Beaching method practiced in subcontinent and Turkey China does not practice beaching, it does the recycling by the Pier side or Dry Docking method Prior to the GFC the volumes and values were about 300 vessels with a value of about USD 1Bln. Now the figures are about 1000-1200 vessels with USD5-6 bln. MARINE MONEY SINGAPORE 2014 4
2014 YTD 1.1.2015 1.12016 (PROJECTED) (PROJECTED) VLCC 191.7 193.1 193.2 SUEZMAX 75.9 76.0 76.1 AFRAMAX 96.0 96.2 97.4 PANAMAX 30.1 30.2 30.1 (ALL FIGURES ARE IN MILLION TONS DWT) MARINE MONEY SINGAPORE 2014 5
YTD 2014 1.12015 1.12016 (PROJECTED) (PROJECTED) VLCC DELIVERY 4.5 7.7 4.2 VLCC RECYCLING 2.6 4.2 4.0 SUEZMAX DELIVERY 0.6 1.3 1.2 SUEZMAX RECYCLING 0.6 1.2 1.1 AFRAMAX DELIVERY 0.8 2.2 3.9 AFRAMAX RECYCLING 1.7 2.9 2.7 PANAMAX DELIVERY 0.3 0.5 0.3 PANAMAX RECYCLING 0.1 0.3 0.3 (ALL FIGURES ARE IN MILLION TONS DWT) MARINE MONEY SINGAPORE 2014 6
YTD 2014 1.1.2015 1.1.2016 (PROJECTED) (PROJECTED) CAPESIZE 303.3 309.5 323.8 PANAMAX 192.4 197.6 206.0 HANDYMAX 162.6 166.3 176.5 HANDYSIZE 88.3 88.6 90.9 (ALL FIGURES ARE IN MILLION TONS DWT) MARINE MONEY SINGAPORE 2014 7
YTD 2014 1.1.2015 1.1.2016 (PROJECTED) (PROJECTED) CAPESIZE D 12.0 20.6 19.4 R 2.8 5.2 5.0 PANAMAX D 9.1 16.0 12.2 R 1.9 3.7 3.6 HANDYMAX D 6.2 11.0 12.7 R 1.5 2.6 2.5 HANDYSIZE D 3.3 5.7 6.7 R 2.2 4.4 4.4 (ALL FIGURES ARE IN MILLION TONS DWT) MARINE MONEY SINGAPORE 2014 8
YTD 2014 1.1.2015 1.1.2016 (PROJECTED) (PROJECTED) ( 000 TEU) (000 TEU) (000 TEU) 12000+ TEU 2491 2617 3353 8-12000 TEU 3931 4101 4778 3-8000 TEU 3734 3775 3807 3000+ TEU 3635 3548 3329 1-3000 TEU 3358 3341 3304 100-999 TEU 675 666 642 MARINE MONEY SINGAPORE 2014 9
YTD 2014 1.1.2015 1.1.2016 (PROJECTED) (PROJECTED) ( 000 TEU) (000 TEU) (000 TEU) 12000+ TEU D 435.9 561.9 736.1 R - - - 8-12000 TEU D 390.0 559.9 676.6 R - - - 3-8000 TEU D 135.3 227.3 117.4 R 68.9 119.6 85.4 3000+ TEU D 18.5 25.4 4.5 R 148.0 241.3 223.4 1-3000 TEU D 29.8 52.4 75.5 R 73.0 112.8 112.9 100-999 TEU D 2.7 3.0 1.8 R 15.0 24.4 24.9 MARINE MONEY SINGAPORE 2014 10
2012 2013 JAN-AUG 14 INDIA 4.4 3.0 2.25 BDESH 2.6 2.2 1.18 PAKISTAN 1.8 1.6 0.80 CHINA 3.2 2.5 1.40 (ALL FIGURES ARE IN MILLION MT LDT) MARINE MONEY SINGAPORE 2014 11
For the first time in 30 years, any party forming the government has got a clear majority! The new government has high growth ambitions. The growth figures have already been revised upwards. So demand for steel will remain strong as the country pushes forward with large infrastructure projects. The government has plans for building 100 smart cities across the country. The INR is stable and may even strengthen. MARINE MONEY SINGAPORE 2014 12
THE CHINESE RECYCLERS ARE GUARANTEED VOLUME DUE TO THE GOVERNMENT INCENTIVE FOR CHINESE FLAGGED VESSELS BEING RECYCLED IN CHINA, IF A NEW BUILDING ORDER IS PLACED. HOWEVER, THIS INCENTIVE IS LIKELY TO END BY 2015. THE PRICE GAP BETWEEN THE SUB-CONTINENT AND CHINA IS BETWEEN USD150-200 PER TON. HENCE, THE CHINESE RECYCLERS DO REALISE THAT POST THE INCENTIVE REGIME, THEY ARE ONLY LIKELY TO GET GREEN RECYCLING VESSELS AND ARE BUSY IMPROVING THEIR YARDS TO MEET STRINGENT STANDARDS MARINE MONEY SINGAPORE 2014 13
1. Banks, especially German banks have financed container ships at very high values. 2. Three banks have total of more than USD 60 billion of loans, for mainly container vessels. 3. New 10,000+ TEU ships ordering continues and has cascading effect, particularly on Panamax boxships of 3000+ TEU, whose rates have gone below opex. 4. Temporarily the rates and asset prices for 4-5000 teu have improved. However, this may be a temporary spike and rates may drop again, sooner than expected. Some expect that the rates will hold and there will be demand for these vessels. Only time will tell. 5. The opening of Panama Canal locks in 2016 (hopefully this time it will actually open within the given time) will worsen this situation. There will not be enough work for the 4000+ TEU. 6. Some owners who see it going down are trying to sell their tonnage while the going is good while some owners who are betting on the opposite side are buying all they can. MARINE MONEY SINGAPORE 2014 14
HKC ratifications happening quite slowly and is expected to take a few more years. However, there is a growing consensus that HKC is the way to go. NGOs don t fully agree due to the fact it allows beaching. EU SRR will likely not allow those yards that use beaching, on its approved list. NGOs using other legislations like European Regulation on Shipment of Waste, which forbids the export of hazardous waste to developing countries (eg Global Spirit). So now Owners having EU flagged vessels who are selling their vessels for recycling, do not sell for recycling till the vessel has left OECD waters MARINE MONEY SINGAPORE 2014 15
Wirana Shipping Corporation 20 Collyer Quay, #09-02, Singapore 049319 Telephone: +65 6227 0115 Email: wirana@wirana.com.sg Web: www.wirana.com Disclaimer: All the information provided herein is given in good faith and without guarantee. Users are advised to do their own due diligence and Wirana does not take any responsibility or liability for any losses / consequences as a result of using this information. MARINE MONEY SINGAPORE 2014 16