Shipping magnate Abdul Qadir Rahman Buhari, the Managing Director of The WAM International, has sealed yet another tender floated by the Tamil Nadu Electrical Board

Shipping magnate Abdul Qadir Rahman Buhari, the Managing Director of The West Asia Maritime International is beginning to raise a few eyebrows in the shipping corridors. In his dogged pursuit of owning ships and winning contracts, the captain of the Chennai-based Corporation has sealed yet another tender floated by the Tamil Nadu Electrical Board which, sources say is tailor-made for Mr Buhari’s self-unloading bulk carrier – the Gem of Ennore, which is intended to move thermal coal from Paradip in Orissa to Ennore/Tuticorin/Karaikal.

The haulier is currently time-chartered by the Tamil Nadu State-owned Poompuhar Shipping Corporation and its 10-year charter period ends Sept/Oct, 2012.

Interestingly, the TNEB’s fresh tender appears to be designed in such a way that no other ship in India has the capacity to bid for it (the tender for the contract has specifically asked for a self unloader feature on the vessel). It’s a home-run for the Gem of Ennore and a smooth transition from one deal to another.

One happens to wonder how a credible agency like PSCL, hired by TNEB for its coal procurement, can be so short-sighted while selecting a vendor. In a country that depends on its coasts for a wide variety of goods, it’s appalling to observe errors in judgement in significant projects with massive financial ramifications.

There is a project that is currently underway to install two gantry cranes at the Ennore port for discharging gearless vessels. The venture is expected to be completed in under 2 years’ time.

The TNEB, amusingly, has brought out a 5-year charter period. The value of a self unloader becomes moot in two years (the gantry cranes are being installed to do exactly what an unloader does). Therefore, the un-loader becomes redundant for the next three years (more of an additional burden to TNEB) and these are the years when the charter hire (around Rs. 20 lakhs plus per day) are 30% to 40% higher than the current rate.

Additionally, infrastructure (gantry cranes) built at huge costs will be under-utilised. These are the years, when having two gearless panamaxes will be financially more viable and sensible than operating the un-loader. In fact, chartering of two gearless vessels to achieve and maintain the same level of transport and supply efficiency at comparable costs would make more economic sense than a self unloader, especially since the gantry cranes are scheduled to come up within two years.

The gantry cranes are being built at the cost of the taxpayers’ money and the government ought to look into it and plug the loophole. Interestingly, the Gem of Ennore was converted more than 10 years ago to suit the requirements of charter.

It was built as a gearless Panamax in 2000 at the Hitachi Zosen Shipyard in Japan. In 2001, she was converted to a self-unloader with cranes and conveyor in China, exclusively for carrying thermal coal from Paradip port in Orissa to Ennore in Tamil Nadu for the Tamil Nadu Electricity Board. One wonders if the West Asia Maritime Ltd had an idea of things to come in future.

There are zero opportunities for the other bidders for whom there is no level-playing field. Comparatively, the rate for a charter hire per day is Rs. 14.49 lakh for GoE while a gearless panamax rate is 5.35 lakhs. It is evident that the cost per ton to TNEB on the unloader is much higher than carrying the coal on gearless panamaxes.

Why not float a tender for a period of one year instead of tying it down for five years? Even if TNEB considers chartering a self un-loader, the period should be limited to one year only and reviewed for continuation in 2013, considering the fast-changing ground realities.

The vessel has to be provided within the lay days which are less than two months away. A major conversion such as this takes no less than 5 to 6 months. Therefore, there is a conflict here. The chartering negotiations were going on as of 3rd week of July and the vessel is required no later than 15th October.

One cannot help but wonder about the track record of the shipping giant. WAMSPL (Singapore) entered into two contracts with Euroceanica, UK, in 2008 for the time-charter of 2 19,800 DWT chemical tankers – namely ‘LBU Onyx’ and ‘JBU Opal’ for a period of 5 years. WAMPSL is a subsidiary of West Asia and accordingly West Asia, Chennai, provided performance guarantees for each ship.

‘LBU Onyx’ and ‘JBU Opal’ were delivered to WAMSPL by Euroceanica in September 2008 and April 2009, respectively. The charter parties for the two vessels had a balance of approximately 32 months and 39 months to be performed when things started to go wrong.

WAMPSL failed to pay hire rates on time under both the contracts, as a result of which, Euroceanica arrested MV ‘Gem of Safaga’ in Australia as a security for their claim in November 2009.

Via EPR Network
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Avoiding the Perils of Dangerous Car Modifications

TorqueCars http://www.torquecars.com, one of the UK’s leading online car modding communities today launched an awareness campaign to highlight the dangers of poor quality DIY car modifications by inexperienced owners.

We see many modified cars that are downright dangerous or at least going to be unreliable. It seems that lots of car owners with minimal knowledge are making changes to their cars without realising the implications. By highlighting these problems TorqueCars hope to minimise the negative impact created by these low budget, poor quality modified cars, and focus on a professional approach to car modification.

It only takes a few high profile incidents involving poorly modified cars before the clamour is raised for legislation outlawing all modifications or restricting the choice of modifications people can do.

Some young drivers seem to think that the more noise the car makes the faster it goes. Experience proves this to be incorrect and often these large exhausts and noisy induction kits have a negative effect on the cars performance and power.

One particular area of concern is with car electrics. Inexperienced DIYers will often overload circuits or hack into wires for power without making proper provisions for vibrations wear and adequate electrical insulation. These can often short out potentially causing a fire or at least creating a breakdown.

The most common electrical mistake is putting a wire straight through a bulk head without placing a rubber grommet around the wire to shield it from rubbing on the bulk head and wearing through.

A holistic approach to car modification is required where increased power is matched with up rated braking and handling. Dropping a 2.0 Turbo engine into a car which originally had a much smaller engine will offer a dramatic power hike but the brakes and suspension will be unable to handle this causing a potentially dangerous situation.

The main motivation for modifying a car is to maximise the drivers enjoyment of the vehicle. Most modifications merely release the full potential of a car where manufacturers have detuned or restricted the car in some way for economic or reputational reasons.

It is also fair to assume that each driver has their own personal preferences when it comes to a cars power band, handling characteristics and the aesthetic design of their car.

A well modified car should be safer than the standard unmodified one due to the stronger or uprated parts introduced. Braking distances can be dramatically shortened, the risk of skidding on a deceptive bend or corner or losing control should also be lower.

By increasing an engines efficiency there is often an additional saving in fuel consumption. This fact is particularly true when it comes to tuning modern turbo diesel engines.

It’s not just poorly modified cars that present a danger; poorly maintained cars are just as big a risk. According to TorqueCars senior partner Waynne Smith, “if you walk around any public car park you will find many cars will illegal tyres. The tread depth will be below the legal minimum or there will be damage to the sidewall of the tyre. We try hard to promote responsible car ownership to our members and readers of our articles.”

The forums at TorqueCars are a great place to go to discuss your car tuning project in details with experienced car modifiers and enthusiasts from around the world. By garnering as much information as you can you’ll be better placed to avoid the common pitfalls associated with modified cars.

Via EPR Network
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