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Asia Shipping News Nov 21, 2000

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Nov 21, 2000, 3:00:00 AM11/21/00
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SHIPPING NEWS HEADLINES
Tuesday, November 21, 2000

SchedNet http://www.schednet.com

* AP Moller introduces SATI
* Ship Propulsion Systems international conference
* Railway sector stays on track
* Stevedore Westerlund to Finnish paper round
* China's air transport rising
* Plane maker to float
* Lynn Fritz back at the helm
* SKF takes over Evox Rifa


AP Moller introduces SATI
=========================
SAFMARINE (Pty) Limited and Maersk (South Africa) (Pty) Limited,
together with their parent company, the AP Moller Group, have formed a
new land-based transport investment company named Southern Africa
Transport Investments (Pty) Limited; or SATI for short.

The new South Africa-registered company has commenced business with
Tony Farr and Brett Gray as chairman and managing director,
respectively. Safmarine and Maersk Sealand are two major players
serving southern Africa and it is their intention to seek strategic
investment opportunities in landside transport infrastructure in the
region. The two shipping lines will bring expertise, gained in the
international maritime industry, to the table.

While a number of current and anticipated investment opportunities are
under review by SATI, work on the first project, a multi-million rand
container services facility in Cape Town, has already commenced. SATI
has, in partnership with the Industrial Development Corporation (IDC),
formed a subsidiary company, SATI Container Services (Pty) Limited,
which will house the project. SATI managing director Brett Gray
commented: "The objective is to build a specialist reefer container
storage depot and repair facility that can also handle all types of
containers, for the benefit of shippers using the services of
Safmarine and Maersk Sealand.

"Reefer cargo shipments account for a significant volume of
containerised exports from southern Africa; yet to date there has been
no local repair facility for technical problems of a sophisticated
nature.

"Previously, seriously defective reefer containers needed to be sent
overseas to be repaired. Springbok Container Services will provide
full reefer container repair and service facilities, thus saving not
only time but also foreign exchange, as the work will now be
undertaken locally. Third party reefer container repair requests from
other carriers will be welcomed."

Ship Propulsion Systems international conference
================================================
LLOYD's List Events has announced the Ship Propulsions Systems -
International Multi-streamed Conference, which will take place on
December 3 and 4 at the Manchester Conference Centre, UK.

This conference is the first of its kind and will focus on all aspects
of drive trains, from prime movers to propulsors. With the growing
interest in single-sourcing, the event will provide emphasis on the
supply of equipment packages and total system solutions.

The programme's agenda will cover propellers, optimised propulsor
systems, waterjets and thrusters, diesel engines, electric drives and
variants, gas turbines, podded propulsors, future alternatives,
propulsion package systems, machinery selection, engine components,
and transition components.

Railway sector stays on track
=============================
CHINA'S railway sector has reported that freight transported from
January to October (inclusive) has risen 5.3 per cent year-on-year,
totalling 1.37 billion tons.

Passenger volumes were up 4.5 per cent to 865 million during the same
10-month period.

Turnover during the interval topped the US$11 billion mark, up 10.1
per cent on the corresponding period last year.

Stevedore Westerlund to Finnish paper round
===========================================
ANTWERP-BASED stevedore Westerlund has inked a new contract with
Finnish paper producers UPM-Kymmene, Mets„ Serla, Mets„ Botnia and
Myllykoski Paper.

In the new contract, the Finns have agreed to route their exports to
Central and Western Europe via Westerlund's terminals. The contract
will run for at least six years and concerns over one million tonnes
of paper a year.

The Finnish paper industry has been using Antwerp as the hub for its
European paper distribution operation for some time. Until recently
the papermakers had kept the transportation of products in their own
hands via their joint ownership of the Transfennica Shipping Company
and the Antwerp-based company Varant, which operates a 50,000
square-metre paper terminal on the Westerlund concession in the
Vrasene Dock.

Following the sale of Transfennica to the Finnlines Group, the four
Finnish paper exporters sold their shares in Varant to Westerlund.
This transaction has allowed Westerlund to increase its storage
capacity and makes new operation synergies available.

Westerlund estimates that the new contract will result in a slight
rise in the volumes passing through the Port of Antwerp. The Antwerp
firm has terminals in Rouen, Tilbury, Changsha in China, and
Charleston in the US. The group currently handles about six million
tonnes of tree products every year.

China's air transport rising
============================
GROSS transport turnover in China's civil aviation sector for the
first 10 months of the year has risen 14.3 per cent on the
corresponding period in 1999.

In all, 10.1 billion tonne-kilometres were registered in the January
to October period.

In addition, the Civil Aviation Administration of China (CAAC) has
disclosed that 1.6 million tonnes of freight (including air mail) were
transported during the 10-month period, an increase of 14.5 per cent
over the same period last year.

The CAAC also noted that 57 million passenger's were carried by the
nation's airlines during the same period - a year-on-year rise of 10.6
per cent.

Plane maker to float
====================
FOLLOWING Hongdu Aviation Industry Company's initial public offering
of stock last week, Harbin-based Hafei Aviation Industry Company has
announced its intention to follow suit.

Hafei plans to float 60 million A-shares on the Shanghai Stock
Exchange and expects to raise US$55 million to be spent on increasing
production capabilities.

Specifically, Hafei will expand its production of composite materials
to be used in the manufacture of aircraft and helicopter parts.

Lynn Fritz back at the helm
===========================
THE Fritz Companies, Inc. has announced that Raymond Smith resigned as
the company's chief executive officer on November 17.

Subsequent to Mr Smith's departure, Lynn Fritz, chairman of the board,
has resumed the position of CEO, and Graham Napier, chief operating
officer, has become president.

Concurrently, a new `operating committee' has been formed to oversee
the implementation and management of the company's global operations
to ensure the timely achievement of strategic and operating
objectives.

The operating committee will be comprised of the company's executive
officers together with the heads of the five global operating regions
- all reporting functionally to the president and COO.

Mr Fritz noted: "I am confident that, as president and COO, Graham
Napier can successfully execute our stated strategic plans because of
his unique industry experience, as well as his proven leadership
skills and compatibility with the members of the executive and
operations management team."

Mr Fritz added: "As noted, we remain committed to all the key
strategic initiatives of the company and remain focussed on staying
the course."

Although Mr Smith is leaving to pursue other interests, he will
continue to provide consulting services to Fritz Companies, according
to the chairman.

"Ray Smith has brought the best practices to Fritz Companies and
focussed the company on employee and customer satisfaction," said Mr
Fritz in announcing the departure. "Through his leadership, important
milestones have been achieved. The industry's first response tracking
system was developed and launched; 24 Fritz university boards were
established around the globe; and the Malcolm Baldrige Process Model
was adopted and has laid the framework for continuous improvement."

Mr Fritz noted that these and other initiatives launched by Mr Smith
would continue on as `key elements in the company's commitment to
improve customer satisfaction'.

Fritz is a specialist in global integrated logistics. The company
delivers comprehensive supply chain solutions to its customers
worldwide by providing flexible door-to-door transportation and
materials management using sophisticated information systems. Emphasis
is placed on simplifying processes and reducing overall transportation
costs.

SKF takes over Evox Rifa
========================
SKF Group unit Logistics Services has signed an agreement with the
Finnish Evox Rifa Group to take over the responsibility for handling
its logistics operations in Europe, as well as its sea and air freight
traffic between Europe and Asia.

SKF has developed efficient logistic systems to ensure the reliable
supply of its products to customers all over the world. These systems
will now be used to distribute Evox Rifa capacitors and other
components to the electronics industry. Evox has manufacturing sites
in Kalmar and Gr„nna in Sweden, Suomussalmi in Finland and Batam in
Indonesia.

The agreement is initially for two years.

"The SKF Group operates central distribution hubs in Europe, North
America and Asia. We are now actively marketing this asset to third
party customers. So far we have closed a few deals and this business
will be developed further," said Phil Knights, president, SKF service
division.

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