MNO3103 PROJECT (May - June 2023)

Introduction & Objective

This exercise gives students an opportunity to use the lessons learnt from the
lectures and tutorials. The objectives are for students

• To be able to do a simple plan for a shipping company

• To be able to do a cost versus income analysis
• To be able to assess the market situation

You have the opportunity to be creative but keep in mind that the aim of any business
venture is to be profitable.

Note that assumptions made or numbers used will have to be reasonable and
supported by references, as far as possible.

New Shipping Company

You and your team members have been selected to take over an ailing ship
company. The information for this company is given in Attachment A (for even
numbered project groups) & B (for odd numbered project groups).

Your team will sell off all the existing ships, some as 2nd hand and the rest to scrap.
This is strictly to be followed.

With the money raised, your team will invest in two (2) newer ships of the same type
(dry or wet bulk), either newbuild or 2nd hand,. You can raise extra money for the
new ships if needed. You can assume your newer ships to be the same (sister
ships).

For the newer ships, you have to decide the Class/Flag, number of crew. For the
company, you have to decide on the name, number of company staff and location of
office(s). You also have to decide on a new business (main commodity and
customer) to revive the company.

Presentation & Deliverables

Prepare a presentation of not more than 25 slides on the topics shown in the table
below (not counting 1 & 7). Each team member will present on one topic (choose from
2 to 6). For teams with less than 5 or more than 5 members, the team can decide who
will cover which topic. Questions will be asked to each team member during their
presentation. Each presentation is not to exceed 30 minutes including Q&A. The
presentations will be in the week 6.

Keep things simple and there is no need (no extra marks) to present more than what
is requested or beautify the slides in any way. Only the content is relevant.

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 1. Title slide with team members
2. Sale of existing ships as 2nd hand ships: how and expected income.
Scrapping of the rest of the ships: how and expected income.
3. Info on the newer ships to be bought (assume both are the same),
cost, principal data of ships, choice of Class/Flag, crew. Whether you
will need to raise extra money and how.
4. Info about revived company business, reason(s) for choice of
business, location of office(s), company staff.
5. Estimated annual operating cost of one ship. Typical voyage cost
example of one ship
6. Info on current freight rates and cash flow analysis for the next 5
years.
7. References

Each presenter must put his/her name on the first slide to be shown.

The set of presentation slides from each team will be used for submission after the
presentation. Teams can make improvements to the slides before submission.

Team marks are awarded for the entire submission (80% of project score) and
individual marks will be awarded for each presenter (20% of project score). Each
team member’s score will be = Team score (80%) + individual score (20%).

Submission

The dateline for submission is Friday 9 Jun 2022 by softcopy.

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 Attachment A

ARIBA SHIPPING PTE LTD

Address: 245 Beach Road, #24-05

The Concourse
Singapore 199555

Email: chartering@aribaship.com.sg

Ships: Bulk Carriers

1. M/V USELESS I
2. M/V USELESS II
3. M/V BENGKOK 1
4. M/V BENGKOK 2

M/V USELESS I & M/V USELESS II

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M/V BENGKOK 1 & M/V BENGKOK 2

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 Attachment B

RIANG SHIPPING PTE LTD

Address: 1 Wallich Street #07-01,

Guoco Tower
Singapore 078881

Email: sales@riangship.com.sg

Ships: Chemical / Product tankers

1. M/V BLUE GEM
2. M/V GREEN GEM
3. M/V SAM OLE
4. M/V SUZIE MAE

BLUE GEM & GREEN GEM

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SAM OLE & SUZIE MAE

Year built: 2000