Singapore’s Competition and Consumer Commission (CCCS) announced that it has cleared the proposed merger of Korean shipbuilding giants Korea Shipbuilding & Marine Engineering Co., (KSOE) and Daewoo Shipbuilding & Marine Engineering (DSME). It was one key hurdle in the plan that would create the world’s largest shipbuilder with a market share possibly as high as 20 percent.
In its announcement, the CCCS said, “After evaluating all the evidence available, CCCS assessed that the proposed transaction, if carried into effect, will not lead to a substantial lessening of competition in Singapore.”
In March 2019, Hyundai Heavy Industries (HHI) Group and Korea Development Bank (KDB) signed a definitive agreement to acquire Daewoo Shipbuilding & Marine Engineering (DSME) in a deal valued at that time at $1.78 billion. Under the terms of the agreement, Korea Shipbuilding & Offshore Engineering (KSOE), which will be established as a sub-holding company spun off from HHI to control the group’s shipbuilding companies. HHI Group reported that its post-acquisition strategy was to have its four shipyards, which would include DSME, focused on design, manufacturing and sales activities, which will be controlled by KSOE which specialized in R&D and engineering. The size and complexity of the deal however requires approval from Japan, Singapore, China, Kazakhstan and the European Union.
CCCS said the deal was referred to it in September 2019 for a decision if it would infringe on the competitiveness rules within any market in Singapore. The commission however ruled in January 2020 that the proposed transaction would require an in-depth review. The review focused on the largest vessels and the potential overlap for tankers, containerships, LNG and LPG vessels.
The commission found that there are high barriers to entry and for expansion required to compete in the construction of these types of vessels. It said that while the customers are a limited group of large shipping companies it believes that the shipping companies continue to have buying power to constrain the combined shipbuilders influence over the market. They also believed that there are other viable alternative suppliers and that those alternate shipyards had capacity to provide an alternative to the combined Korean shipbuilders.
After its review and interviewing customers and other parties in the shipping industry, the CCCS reported that while it believed there would be a higher market concentration from the merger, they did not believe it would result in coordination or collusion on pricing.
Singapore’s decision is just one of many that the merger requires and they may still face a stiff battle with the EU to gain approval. Late in 2019, the European Commission announced that it had opened an in-depth investigation based on its concerns that the merger may reduce competition in various global cargo shipbuilding markets. Based on delays gather information, in part due to limitations as a result of the coronavirus, the EU has on several occasions suspended the review process. Originally expected to be completed by September, estimates are that the EU might not announce its decision before 2021.
A massive fire broke out at the Port of Beirut on Thursday, incinerating a warehouse full of tires and oil within the port’s free zone. The same area was heavily damaged in the ammonium nitrate explosion that leveled the central port area and the adjacent waterfront on August 4. According to Lebanon’s civil defense agency, […]
Over the course of the past five days, the Australian Maritime Safety Authority arranged a medical intervention for an injured aboard a freighter in the Indian Ocean. On Saturday evening, the Spliethoff tweendecker Dolfijngracht called for assistance while under way about 1,000 nauical miles off the coast of Western Australia. A crewmember had sustained serious […]
The naval forces of the US and Bahrain recently staged a joint force training exercise which showcased the interoperability between coalition warships operating I the Arabian Gulf. Coalition Task Force Sentinel executed combined exercise Sentinel Shield supporting Sentry and Sentinel patrols in the coalition’s area of operations. The guided-missile destroyer USS John Paul Jones and […]
DSV Belgium has solid experience in the transport of pharmaceutical products for different customers. With a pharma hub based at Brussels Airport a lot of experience and know-how has been built up over the years. Last weekend, the forwarder handled one hundred million mouth masks, an important milestone for its Belgian organisation that has put […]
The U-Freight Group (UFL), with its considerable involvement in eCommerce logistics, says that the latest statistics showing that global e-commerce sales hit $25.6 trillion in 2018 are a further vindication of its decision to enter this sector of the international freight market several years ago. The latest available estimates, up 8% from 2017, were recently […]
The UK government’s new post-Brexit tariff regime will result in both winners and losers. The new regime is set to replace the European Union’s Common External Tariff from the end of the Brexit Transition Period on December 31, 2020. The UK’s commitment to the ongoing Brexit process and ending the UK’s transition from EU membership […]
Astral Aviation has increased its intra-African network with cargo freighters during the pandemic. While there has been a reduction in capacity to, from, and within Africa, which has been caused by a stoppage of passenger flights and limited frequencies on freighter aircraft, Astral Aviation continues to operate cargo freighters from its Nairobi hub to 13 destinations […]
The National Transportation Safety Board (NTSB) has released a Marine Accident Brief about an accident that occurred on April 15, 2019, involving the towing vessel DeJeanne Maria which struck the end of a submerged dredge pipeline while pushing two spud barges to the Gulf of Mexico. The incident occurred on the Mississippi River in Pass […]
With close to 100 daily cargo flights operated to a destination network spanning more than 65 cities across six continents, Emirates SkyCargo is delivering essential supplies and commodities to people around the world. The air cargo carrier is currently operating 11 Boeing 777 freighter aircraft, each with a capacity to transport about 100 tonnes of […]
Best known as a leading passenger airport serving Germany’s most populated federal state North Rhine-Westphalia, Düsseldorf has become transformed into a vital distribution point, during the COVID 19 pandemic, for medical equipment and other life-saving goods, mostly from China. Gerton Hulsman, managing director of cargo operations, reports that the handling teams are working hard to […]
Operators can continue to use pilots and other crew members who have unable to comply with certain training, recent experience, testing, and checking requirements due to the COVID-19 outbreak in support of essential operations. Additionally, this Special Federal Aviation Regulation (SFAR) provides regulatory relief to certain persons and pilot schools unable to meet duration and […]
Emirates SkyCargo has expanded its weekly scheduled cargo flight operations to cover 75 destinations across six continents. Through its wider reach, Emirates SkyCargo is able to transport essential commodities and other urgently needed cargo more rapidly across the world, allowing exporters and importers across markets to benefit from direct access to widebody cargo capacity. Some […]
Global commercial aviation charter company Albion Aviation Group is reporting that it is seeing a considerable uptake in its professional cargo broker training courses from the current global pandemic crisis and surge in charter demand. “We have completed a number webinar courses for a whole of host of companies, looking to manage their own cargo […]
The First DP2, Twin-Hulled SOV in the World, NB72 Groene Wind met the Sea on September 29. 2020 in Yalova, Turkey. The Groene Wind will be directly chartered to Siemens Gamesa Renewable Energy for the maintenance of the Rentel and Mermaid & Seastar (known as SeaMade) offshore wind farms in Belgium. This is the first DP2, […]
Callan Marine is serving as the prime contractor to the Texas Department of Transportation for a maintenance dredging project located at the Bolivar Ferry Terminal, in Galveston, Texas. Work began in May and is estimated to be complete in late July 2020. The project consists of the removal of 600,000 cubic yards of material and […]
Network Airline Management and TAAG Angola Airlines are pleased to announce the renewal of their long-term freighter aircraft contract by an additional 12 months, sealing an ongoing partnership for the foreseeable future. Operating a regular weekly scheduled service from Liege, Belgium, to the capital of Angola, Luanda, Network Airline Management provides a Boeing 747-400F aircraft […]