Robin Chan, Straits Times 1 Oct 09;
SHIPPING tycoon Ow Chio Kiat has given his backing to an innovative fuel-saving technology produced in Singapore.
Mr Ow's mainboard-listed Singapore Shipping Corporation is to market the technology from Singapore-based Neftech to 10 shipping lines, following the signing of an agreement yesterday.
The deal means that up to 1,200 ships could potentially benefit from the new fuel system, thereby shaving a combined US$600 million (S$845 million) a year off their fuel costs, according to Neftech.
Russia-led Neftech is backed by prominent Singapore investors, including former Neptune Orient Lines (NOL) deputy chief executive Lim How Teck, GK Goh chairman Goh Geok Khim and former transport minister Yeo Cheow Tong.
Two weeks ago, the company secured an agreement to install its fuel system on 20 of NOL's vessels.
Potential customers include Eukor Car Carriers as well as Mitsui OSK Bulk Shipping, who had representatives present at the signing ceremony at Bistro Du Vin.
'Mr Ow is very well known in the shipping industry...This will help us to roll out our breakthrough fuel-saving technology at a much faster rate than if we had to do it ourselves,' said Neftech chairman Victor Levin. The fuel system uses a proprietary technology called cavitation, which enables fuel to burn more efficiently and produce less pollution.
'The shipping industry spends over US$150 billion a year on fuel oil,' Mr Levin said. 'We can save 10 per cent of that.'
He added that the company expected turnover to hit US$1 billion within five years and that total costs incurred would not be more than 20 per cent of revenue per ship.
Neftech, SSC team up to market fuel-saving technology
Vincent Wee, Business Times 1 Oct 09;
(SINGAPORE) Neftech yesterday sealed an exclusive marketing deal with Singapore Shipping Corporation (SSC) to push its fuel-saving technology to 10 selected shipping lines.
This follows Neftech's 20-ship deal with Neptune Orient Lines container unit APL two weeks ago.
Neftech chairman Victor Levin said: 'We are delighted to collaborate with another major shipping player in Singapore. SSC is a well-established shipping group that has extensive relationships with shipping lines worldwide and we are confident that SSC's business associates will reap tremendous benefits from Neftech's tested proprietary technology.'
Based on SSC's current principals' and partners' existing and targeted pool of up to 1,200 ships, potential fuel savings of up to US$600 million per annum may be achieved using Neftech's technology, assuming average savings of about 10 per cent. Neftech is, meanwhile, also approaching other clients on its own and has a five-year revenue target of US$1 billion per year, said Mr Levin.
SSC executive chairman Ow Chio Kiat said: 'Partnering with Neftech sharpens our focus on the provision of niche, high value-added shipping services and solutions. We are delighted as Neftech's technology not only promises to reduce fuel and operating costs for the shipping industry, it also contributes positively to the environment by reducing carbon dioxide emissions and other pollutants. We look forward to bringing such benefits to all of our partners and principals in the global maritime industry.'
He declined to say how much SSC would make out of the deal but revealed that the effects of the agreement would not be seen in the current financial year. He said that the marketing arrangement would leverage on SSC's relationships with its partners and principals built up over the years, some of which, such as Mitsui OSK and Eukor, were represented at the launch.
'I believe that this is such a great technology and we should roll it out as quickly as possible and I think it makes sense that we reach out to those people who are already doing business with us.'
Neftech, SSC team up to market fuel-saving technology
By VINCENT WEE
(SINGAPORE) Neftech yesterday sealed an exclusive marketing deal with Singapore Shipping Corporation (SSC) to push its fuel-saving technology to 10 selected shipping lines.
This follows Neftech's 20-ship deal with Neptune Orient Lines container unit APL two weeks ago.
Neftech chairman Victor Levin said: 'We are delighted to collaborate with another major shipping player in Singapore. SSC is a well-established shipping group that has extensive relationships with shipping lines worldwide and we are confident that SSC's business associates will reap tremendous benefits from Neftech's tested proprietary technology.'
Based on SSC's current principals' and partners' existing and targeted pool of up to 1,200 ships, potential fuel savings of up to US$600 million per annum may be achieved using Neftech's technology, assuming average savings of about 10 per cent. Neftech is, meanwhile, also approaching other clients on its own and has a five-year revenue target of US$1 billion per year, said Mr Levin.
SSC executive chairman Ow Chio Kiat said: 'Partnering with Neftech sharpens our focus on the provision of niche, high value-added shipping services and solutions. We are delighted as Neftech's technology not only promises to reduce fuel and operating costs for the shipping industry, it also contributes positively to the environment by reducing carbon dioxide emissions and other pollutants. We look forward to bringing such benefits to all of our partners and principals in the global maritime industry.'
He declined to say how much SSC would make out of the deal but revealed that the effects of the agreement would not be seen in the current financial year. He said that the marketing arrangement would leverage on SSC's relationships with its partners and principals built up over the years, some of which, such as Mitsui OSK and Eukor, were represented at the launch.
'I believe that this is such a great technology and we should roll it out as quickly as possible and I think it makes sense that we reach out to those people who are already doing business with us.'
