Continue to invest in shipping JJ Ugland

CONTINUE TO INVEST IN SHIPPING

JJ Ugland Companies is a global provider of shipping, ship management, offshore and industry services. Philip Yorke talked to Oystein Beisland, the shipping group’s managing director, about the growth in its bulk and shuttle tanker business and its move into new markets.

JJ Ugland Companies is one of Scandinavia’s most respected and successful shipping groups, and is located in the historic town of Grimstad on Norway’s south-eastern coastline. The Ugland companies have a remarkable history dating back to the 17th century when the Ugland family were involved in forestry, farming and shipbuilding. Norway’s famous local shipbuilder, Halvor Olsen Ugland built the classic sailing ship ‘Fortuna’ in 1772 and this was the beginning of a long family tradition in shipping.

The companies’ key business areas are ship-owning, ship-management, offshore operations and offshore construction. In June 2010, the group’s main shipping company AS Uglands Rederi celebrated its 80th anniversary. The shipping arm of The JJ Ugland Companies consists of AS Uglands Rederi, Ugland Shipping AS, Ugland Bulk Transport AS and Ugland Marine Services AS.

These companies constitute a professionally managed and fully integrated ship management consortium where all service facilities are provided in-house via Ugland Marine Services.

The main JJ Ugland companies are located in Grimstad, and it is from there that Ugland Bulk Transport operates a pool of Handymax bulk carriers, four of which have been delivered during the past couple of years. Another vessel will be delivered in 2012. It is worth noting that recently Ugland Bulk Transport AS was rated as one of Norway’s best companies. Also based in Grimstad is AS Nymo, the group’s full-service engineering, procurement and construction company within the oil and gas industry, with its main yard in Grimstad and additional fabrication facilities in the neighbouring town of Arendal. Continuous investment programme

JJ Ugland Companies is a diverse shipping group and is continuing to expand both its bulk carrier fleet and its range of marine services. The bulk shipping fleet operates on long-term charters worldwide. Mr Beisland said, “When it comes to bulk carriers we are one of the biggest in Norway with 12 owned vessels, most of which have been commissioned by us and ‘new-built’ by Japanese yards. We are continuing to renew and expand our bulk carrier and tanker fleets, which represents an investment of around $30 million for a bulk carrier and more than $100 million for a tanker with a deadweight of over 120,000 tons. However, what is most important is timing when it comes to making such large investments.

“Furthermore, we are an old-fashioned company in the sense that we are a fully integrated shipping group that provides

technical management and full crewing and are committed to maintaining our high standards of safety and reliability. We are proud of our heritage, our philosophy and the fact that 100 per cent of the companies’ shares remain privately owned by the original founding family.”

Flexible, customised solutions

The group believes that operational flexibility is a core part of its culture in providing customised solutions for its customers. This philosophy applies to both bulk carriers and shuttle tankers. Ugland’s bulk carriers are modern Handymax dry cargo vessels that range in size from 45,000 tons to 58,000 tons deadweight. Each vessel is fitted with additional self-loading and unloading equipment including grabs, and the majority of these vessels are designed for the transportation of logs and lumber.

The JJ Ugland Companies’ forward planning expertise and operational flexibility provides its customers with a wide variety of options under both short-term and longterm period charters. This flexibility ensures that a customer’s transportation requirements can be optimised in the most efficient and cost-effective manner. All of Ugland’s fleet operations are controlled by Ugland Marine Services, in close cooperation with local port representatives in order to meet the special requirements of its clients and to maximise operational efficiency.

Furthermore, the group’s tanker division operates modern crude oil tankers equipped with dynamic positioning systems, variable pitch propellers, as well as side thrusters in order to offer the most advanced manoeuvring capabilities. Its modern fleet of shuttle tankers has played an important role in the transportation of oil from installations in the North Sea, the East Coast of Canada and offshore Brazil and they have been operating regular and efficient tanker operations in the North Sea since 1986.

Mr Beisland added, “We will continue to develop the business segments in which

The 126,000-dwt shuttle tanker Vinland.

we operate today and will also continue to invest in our bulk carrier and shuttle tanker fleets. However, we are now looking at new shipping segments in which to apply our expertise as well as new geographical areas in which to operate.

“We are currently operating from oil fields with very sophisticated tankers, and all these very expensive vessels are on long-term charter to the major oil companies.

“There is also strong competition in the shipping market, but we have good long-term relationships with our customers. Our commitment to safety and the environment is another reason why we are seen by many as the shipping group of choice.”

The Ugland barge UR 108 carrying wind turbine foundations. Expanding offshore activities

In 1978 Ugland Construction was established and today operates a fleet of flat-top and semi-submersible barges in sizes ranging from 10,000 to 16,000 tons, some of which are equipped for the installation of offshore wind turbine. The company also provides its customers with the facility of a self-propelled 600 ton, heavy lift crane vessel called the Uglen. This highly specialised Ugland division focuses on marine transportation and inshore lifting operations for oil and gas companies, as well as providing services for offshore contractors, fabrication yards, shipping and engineering companies. This growing sector offers further value-added services, such as the fabrication and installation of grillage and sea-fastening structures.

When it comes to health, safety and environmental protection, JJ Ugland Companies is proactive. The shipping group lists its top health and safety priorities in the following order: (1) safety to life and health, (2) safety to the environment, (3) safety to vessels and cargo. It is committed to the continuous improvement of its safety performance and has maintained an excellent track record with no serious accidents or negative environmental events occurring during its long and successful history. n