Danish Maritime Magazine 01-2012

DANISH

ERHVERVSMAGASINERNE

M ARITIME MAGAZINE 1 - 2012

Carsten Mortensen, chairman of Danish Shipowner’s Association:

Crisis makes us stronger - We have all the prerequisites needed compared to other great shipping nations.

Minister with blue ambitions Danish Minister for Business and Growth Ole Sohn is ready to boost the effort to make Danish shipping even more competitive.

Jenny Braat, managing director of Danish Maritime:

Make use of the advantages

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Danish Embassy, Danish Marine Group and APM 2012 present

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March 15Th 2012, hrs 14:00–16:40 7LPH

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Opening Speech Ole Lisborg - Danish Ambassador to Singapore

1420-1440

Green Shipping in the Asian Marine Industry Justin Gadbois - General Manager-sustainability, Maersk Line Asia Pacific

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Efficiency Optimization of Pump- and Ballast Water Treatment Systems Martin Bro - Sales and Application Manager, DESMI

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PureThinking, Sustainable Solutions for Marine Environment – Ballast Water Treatment and Exhaust Gas Cleaning Goh Boon Guan - Manager, PureBallast, Parts & Service Equipment, Alfa Laval & Jeroen Van Rie - MD, Marine & Diesel Division, Alfa Laval Aalborg

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Green Refrigeration Anders Haugaard - Global Product Manager, Johnson Controls

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Optimizing trim and speed with empirical modeling Daniel J. Jacobsen – CEO, GreenSteam

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Energy Saving in Main Cooling Systems Jon Berggren - Business Development Manager, Grundfos

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Low Voltage High Efficiency Electro Motors Ketil Vesterlund – CEO, Hoyer Motors Asia

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Photo: Bjarke Ørsted

International fight against pirates Denmark is a significant seafaring nation with a long history of plying the oceans, exploring, trading and settling all over the world. We are among the strongest export nations in the world, and we are in the forefront of international shipping. Denmark handles about 10 percent of global maritime shipping measured by value. Maritime trade thus contributes considerably the Danish economy.

When pirates attack and highjack ships off the Coast of Somalia and in the Indian Ocean, they pose a threat, not only to the global economy, but to the lives and wellbeing of our sailors and their families, to Danish shipping and trade, and to our partners in the region, who experience rising costs of living in already difficult circumstances. That is why Denmark is at the forefront of the international fight against pirates.

Denmark applies a comprehensive approach to its counterpiracy efforts. On the political level, in our dialogue with bilateral, regional and multilateral actors, we work to promote a coordinated and effective international effort to fight pirates.

We will only gain headway, if we join forces. In the maritime domain, Denmark contributes to military counter-piracy efforts in the framework of NATO. The international naval efforts are a big part of the reason why we now experience a significant drop in the number of successful attacks. We do make a difference. The positive trend can also be attributed to the increasing number of vessels taking preventive measures, including complying with the Best Management Practices. The shipping industry’s demonstration of responsibility and concern for the safety and security of their crews plays a crucial role in curbing piracy. The severity of the situation calls for concerted action from all stakeholders.

We also chair the legal Working Group under the International Contact Group on Piracy off the Coast of Somalia (CGPCS),

4

International fight against pirates

thus providing leadership for the efforts to find legal solutions to the challenges of piracy, including prosecution and incarceration. Simultaneously, we support capacity building in the judicial sector and with a view to building coast guard capacities in the region. In the longer run, we must enable the countries in the region to take the lead in combatting piracy.

Last, but certainly not least, Denmark supports programmes of stabilisation and development in Somalia. Without peace and stability in Somalia there will be no sustainable reduction in piracy.

In the Malacca Strait, where pirates posed a significant problem for years, the countries in the region took on the challenge with a concerted effort, and succeeded in containing the problem. Although the regional context surrounding Somalia is very different, the efforts of Indonesia, Malaysia, Singapore and Thailand have been an inspiration to us when formulating our counter-piracy strategy.

We all have an interest in keeping the oceans safe and navigable for travel and trade. Cooperation in the maritime sector creates important partnerships across the globe to the benefit of us all. Best wishes for the Asia Pacific Maritime 2012.

By the Danish Minister for Foreign Affairs Villy Søvndal

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DANISH

ERHVERVSMAGASINERNE

M ARITIME

1-2012

MAGAZINE 1 - 2012

Carsten Mortensen, chairman of Danish Shipowner’s Association:

Crisis makes us stronger - We have all the prerequisites needed compared to other great shipping nations.

Minister with blue ambitions Danish Minister for Business and Growth Ole Sohn is ready to boost the effort to make Danish shipping even more competitive.

Jenny Braat, managing director of Danish Maritime:

Make use of the advantages

Dampskibsselskabet Norden A/S

ISSN: 1903-5888

4 International fight against pirates 6 Carsten Mortensen: Strong future for Danish shipping 8 Danish Minister for Business & Growth on shipping: Green shipping creates growth 10 Setting new standards for communication at sea 12 The Danish Shipping Community sets a standard for the use of private armed guards 14 Danish Maritime on retrofitting: Enabling existing ships to meet high green standards 15 Shipping is getting greener, but…

Green incentives could be stronger 16 Specialised in on-site engine repairs 18 Shipping in the Future: Active green knowledge makes a difference 20 Maybe cleaning in land: In search for the right cleaning of ballast water 21 Green progress: Retrofitting creating new Danish impact 22 Green Ship of the Future: A cascade of new green solutions for RoPax ships

Editor René Wittendorff rw@erhvervsmagasinerne.dk Ads Phone (+45) 7020 4155 ads@erhvervsmagasinerne.dk Publisher ErhvervsMagasinerne ApS Jaegergaardsgade 152, Bygn. 03 I 8000 Århus C Phone.: (+45) 7020 4155, Fax: (+45) 7020 4156 Printing: PE offset A/S Layout: Michael Storm, Designunivers Next issue: 25th of May 2012 Advisory Board: Chairman CEO Klaus Kjærulf, SeaMall Jan Fritz Hansen, Vice Executive President in the Danish Shipowners’ Association CEO Jenny Braat, Danish Maritime CEO Lars Thrane, Thrane & Thrane CEO Kurt Skov, Blue Water Shipping CEO Bjarne Mathiesen, The Port of Aarhus CEO Steen Sabinsky, The Maritime Development Center of Europe Editor René Wittendorff Copyright

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Carsten Mortensen, CEO Norden and new chairman Danish Shipowner’s Association: - Danish shipping has a high standard and a strong international position.

CARSTEN MORTENSEN:

STRONG FUTURE FOR DANISH SHIPPING Danish shipping holds a strong position even in times with crisis and low freight rates, and Carsten Mortensen, CEO of Dampskibsselskabet Norden and new chairman of Danish Shipowner’s Association, has a clear expectation that Danish shipping will come strengthened out of the crisis. To him quality shipping is one of the key factors.

- Today the Danish merchant fleet is quite modern and competitive especially after years with major deliveries. And this is exactly what we want Danish shipping to stand for: Quality shipping including initiatives like “Green Ship of the Future” and a general environmental effort making us sort of pioneering example in Denmark. We are proud of this, Carsten Mortensen says.

He points out that environmental awareness is not just about costs: - The best thing is that it is actually good for business to care about the environment considering the high fuel prices at the moment. It goes well hand in hand to do something good for the environment while doing something good for the bottom line for the Danish shipping companies.

Dampskibsselskabet Norden takes part in some projects in Green Ships of the Future and has as a company a strong engagement in lowering CO2 emissions.

- We work a lot with CO2 emissions and fuel savings and have our own action plan with 14 points to reduce fuel consumption and subsequent emissions. As recently as last summer we contracted four new tankers that burn substantially less fuel than the comparable tankers previ-

6

Carsten Mortensen: Strong future for Danish shipping

ously bought by us. As a matter of fact they consume 25 percent less than Norden’s latest tankers. This amounts to many tons daily of fuel saving and reduced CO2, Carsten Mortensen underlines.

FRAMEWORK The framework conditions for Danish shipping is of utmost importance in a globalized trade, and Carsten Mortensen is pleased that changing governments over the years have maintained focus on this issue.

- Today the conditions are quite reasonable. We already have tonnage tax and DIS (The Danish International Ship Register) in place. Of course the frame work conditions need a service check once in a while, and they were upgraded last summer. I think that we in the industry have had a fine cooperation with both the previous government and the present, he states.

Former Minister Bent Bendtsen took great effort in modernizing the general conditions for Danish shipping.

- We shall see how things work out with the new government, but they have stated that shipping should have status as a Danish stronghold focusing on how to make shipping even better.

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- In value Danish shipping counts for 10 percent of world trade and we are an important industry in society. Looking at our balance of payments, we have foreign exchange earnings of 178-180 billion DKK. That’s a strong position, he stresses.

- It’s a turbulent industry we live in. There’s the Euro crisis, which also affects some of the big banks being active in shipping finance. And we must face that the ship financing that was available for only 3-4 years ago is not the same. And the slowdown is in Europe something that affects world trade, although things are beginning to brighten slightly in the US. - As an industry Danish shipping stands with the right tool, but it is an industry that is challenged right now as quantities no more show quite the growths we have been accustomed to. And more and more ships are being delivered.

- However, it’s been like that forever. Shipping is a cyclical business. We just need to keep on working. The industry will finally come through this downturn on freight rates, Carsten Mortensen states.

PIRACY In recent years piracy off Africa’s Horn has become a major problem for Danish shipping and international shipping

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as a whole. Coping with piracy is costly, and it has serious impact on humans, when ships are attacked. Even though the success rate for pirates is dropping, no one expects the problem to disappear.

- We are pleased that it has now been made easier for Danish shipping companies to carry armed guards aboard the ships. We have had the guards for some time, but now the procedure is less bureaucratic, he says.

- We spend 1-2 billion DKK per year on combating piracy, but the government is pitching in as well by committing itself politically to be present down there every six months with the warships “ Absalon” or “Esbern Snare” plus a Challenger surveillance aircraft in periods, Carsten Mortensen says.

He is satisfied with the Danish political commitment corresponding to the Danish position as a major shipping nation.

- Naturally we could use the amount of 1-2 billion DKK. on the bottom line right now in the industry, but we choose to take a pragmatic approach: If this is needed now, we must do so, as long as we feel that the long term policy is working towards a solution creating law and order in Somalia, so they can establish their own criminal prosecution.

Carsten Mortensen: Strong future for Danish shipping

7

- Meanwhile, we have access to protection of our ships. Together with the unions, we have defined standards for armed guards aboard our vessels. It is absolutely essential to do this the right way with guards being qualified for the job they are hired to do, he underlines and mention the importance of the new international BMP4 (Best Management Practice) rules for ships passing through the Gulf of Aden and Indian Ocean.

- We note that the number of successful pirate attacks has gone down steeply. Even though the number of attempted assaults is the same or slightly increasing, it appears that what is being done is working.

- However, It is our concern that someone finds out that piracy could be a good business. If we do not quickly get something done about the problem, it might inspire criminals elsewhere, maybe in West Africa. If you speed up on one side of the fence, the other side might do the same.

- What we do is a tactical effort to defend our crews in the first place and secondly ships and cargoes. It’s not a strategic effort to solve the problem but rather treating the symptoms until the situation in Somalia one day will be improved and pirates can find a living in land, he says.

COMPETITION Carsten Mortensen is convinced that Danish shipping will hold an even stronger and more competitive position once the crisis is over.

- I have a hope that the Danish shipping industry will emerge stronger even if we face a turbulent time to get through the next year or two. Actually we have all prerequisites to emerge stronger from this crisis, when looking at other major shipping nations: - We have a modern quality fleet and major shipping companies.

But also in the undergrowth of companies, we have very proud traditions and a modern fleet and hopefully a system that makes it possible to get through the difficult period for some companies, says Carsten Mortensen, pointing out another strengthening factor.

- A freight crisis as the present in some of the segments, is the same for everyone regardless of where you come from. The beauty of such a crisis and the lack of liquidity is of course that fewer new ships are ordered. So if you continue to scrap old ships, we will have balance. In shipping things always balance out. The will do so in the future, Carsten Mortensen, assures.

By Finn Bruun

8

Green shipping creates growth

DANISH MINISTER FOR BUSINESS & GROWTH

GREEN SHIP

Danish Minister of Business and Growth, Ole Sohn: - We can attract new shipping companies to Denmark by being a pioneer of modern quality shipping.

The Danish Minister for Business and Growth, Ole Sohn, has for years been actively interested in Danish shipping and a supporter of the political consensus that has led major political parties to agree upon the need for competitive conditions for shipping companies.

Now he as Minister ensures that the industry’s future growth will be in focus: A “Growth Team” is under way.

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ON SHIPPING:

PING CREATES GROWTH - There is no doubt that the maritime industry is a clear Danish stronghold and many of our maritime companies are world market leaders, says Ole Sohn, indicating that the Blue Denmark as a whole employs about 80,000 people.

- The Blue Denmark’s part of the Danish companies’ total turnover amounts to approximately 12 percent. And our shipping transports about 10 percent of total world trade by value, he says, adding: - In other words, great figures that characterize the maritime world. But it certainly does not mean that we should just sit back passively. On the contrary - it is my ambition to put additional pressure on the engines in the maritime industry, he says.

GROWTH POLICY - That is why the Blue Denmark enters as a separate strand of a Committee of Ministers, the Government has set up. The committee will come up with ideas on how to renew our businessand growth policy. We have held the first meeting and the next step is that we have established a Growth Team for the Blue Denmark, says Ole Sohn and elaborates: - The Growth Team must come up with concrete recommendations on how to strengthen the industry’s growing conditions in the future and how we exploit the strong position of the maritime industry to create new growth and employment in Denmark.

- Without anticipating the work of the Growth Team, I would like to point out a few of the areas that I think is interesting to look at: - Firstly, I will ensure that we create the foundation for keeping the companies already in Denmark. And we must be better at attracting new shipping companies to Denmark. - Every time a company chooses to place its ships under the Danish flag or operate from Denmark, it means more growth and jobs - not only for seafarers but also for the employees in land, Ole Sohn says.

- And additional Danish shipping companies will create an increased demand for equipment for ships. It creates, in other words jobs both at sea and on land, he says, and asks: How can we attract more companies?

- One of the keys is to be a pioneer of modern quality shipping, he underlines.

MARITIME CLUSTER - It requires a strong and thriving maritime cluster, where authorities, shipowners and equipment industry join forces to develop new innovative solutions. I hope that the Growth Team will look into this when they go to work.

- Secondly, I think we should focus on exploiting the work going on in the UN Maritime Organization IMO, for example concerning environment. We must work to ensure that Danish companies will take part in the demand for new and innovative solutions that arise in the wake of new rules and regulation on the environment, he says, and mentions new hull paint that reduces water resistance and thus reduces energy consumption as an example. Another field may be the cleaning of exhaust gases, which reduce sulfur emissions from ships. Or it may be devices for cleaning ballast water from ships.

- I am sure that by making shipping more green we can simultaneously create growth and jobs in our maritime industry, he stresses.

EASIER FOR OWNERS AND SAILORS - And thirdly, we must make it easy to be shipping companies and seafarers. Every time a ship docks, a wide range of controls is becoming active ranging from port authorities, classification societies, flag states to oil companies. But often it’s the same documents to be checked over and over again, Ole Sohn says calling it both costly for the company and hard work for the seafarers.

- I am very pleased to spearhead efforts to set a new course for Danish shipping, Danish Minister of Business and Growth Ole Sohn says.

We must be bet better at attracting new shipping companies to Denmark.

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Green shipping creates growth

9

A lot has changed since the twin brothers Lars and Per Thrane in 1981 delivered their first radio telex modem to the Danish Ministry of Foreign Affairs. Today Thrane & Thrane focuses on mobile satellite and radio communication, and they are among the world leaders in developing maritime satellite terminals targeting the Inmarsat system.

- We have four business units: aeronautical, land mobile, maritime and systems, Maritime solutions account for about 60 percent of our annual turnover, so it is a very important focus area, says Casper Jensen, who is VP Maritime Business Unit.

DIFFERENT CUSTOMERS HAVE DIFFERENT NEEDS With customers in all corners of the maritime industry, Thrane & Thrane communication solutions have to meet some highly diversified needs and requirements.

- We supply everything from portable VHF radios to comprehensive VSAT antenna systems. A small fishing boat in the Mediterranean only needs a handheld radio for safety and

10

Setting new standards for communication at sea

emergency situations, while larger ship owners demand broadband with integrated internet, voice, fax and data.

Our range of solutions caters to all needs, Casper Jensen explains.

R&D IN DIALOGUE WITH END USERS The solutions are developed at Thrane & Thrane’s R&D units in Lyngby outside Copenhagen and in Aalborg. Researchers there have been focusing on maritime satellite terminals targeting the Inmarsat system for more than twenty five years, and this has led to continuous improvements with addition of new products, features and increased effect and reliability.

R&D inspiration comes from the ongoing dialogue with end users and partners around the world. Retail sales of Thrane & Thrane products like the renowned SAILOR brand are handled through local partners and resellers, but Casper Jensen and his colleagues regularly meet up with ship owners and ship yards to hear about their present and future communication needs.

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SETTING NEW STANDARDS FOR

COMMUNICATION AT SEA Thrane & Thrane provides communication solutions to the maritime industry. Customers range from small yachts and fishing boats to the biggest ocean going vessels. And they have just signed a ground breaking agreement for maritime VSAT systems.

- We like to listen to end user experiences of what is good and what needs to be improved about our products, says Casper Jensen. That way we can find feasible ways of matching hardware and software options with customer requirements in the right quality and at the right price. It’s all part of a well defined plan for product development.

NEW TRENDS The trend in mobile communication right now goes towards maritime broadband solutions that integrate different kinds of communication systems and has the capacity to handle transmission of larger amounts of data at a fixed rate. More and more ship owners are dependent on internet access and IP connectivity to monitor and track vessels. Communication technology and software is being used to optimize operations, security systems and of course improve welfare for the crew. That is why the market for broadband and VSAT systems in particular is growing.

900 VSAT solves these problems. The new system is fast and simple to install without testing, balancing and configuration of satellite antennas on board vessels. Such necessary processes have been performed prior to delivery. SAILOR 900 VSAT is also highly reliable and compatible with all Ku-band satellite systems globally.

The new order for at least 290 units of SAILOR 900 VSAT to be installed on Maerks Line vessels represents a technological and commercial breakthrough.

- Over the next few years we will intensify our focus and increase our share of the VSAT market. After all we have a strong technology platform that gives us a considerable competitive edge in terms of reliability, quality and functionality, says Casper Jensen.

THE VSAT INTEGRATED BROADBAND SOLUTION So far VSAT systems have been considered too complex to install and operate, but Thrane & Thrane’s innovative SAILOR

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Setting new standards for communication at sea

11

THE DANISH SHIPPING COMMUNITY SETS A STANDARD FOR THE USE OF PRIVATE ARMED GUARDS Fighting the pirates off the Somali coast requires a holistic approach both with short and long term means.

The Danish shipowners and the Danish government have agreed on sharing some of the burden. “We as shipowners are willing to take our part of the costs. We have an interest in ensuring continuous protecting of our seafarers, ships and cargo, and therefore we have made an agreement with the Danish Defence Minister”, says Jan Fritz Hansen, Executive Vice President of the Danish Shipowners’ Association. The Danish shipowners will continue to protect their ships according to the advices as mentioned in the Best Management Practices 4, IMO’s guidelines and when deemed necessary also to use private armed guards. The cost of all these protective measures is estimated to amount to 200 - 300 USD a year. The Defence Minister has in exchange promised to provide naval protection with a warship minimum 6 month a year until 2014, and when possible also air surveillance.

Jan Fritz Hansen predicts that the use of private armed guards will become more common. He further says: “When the ships are protected and as difficult as possible to hijack, the navy will be able to prioritize proactive actions against the pirates and their bases.

We would like them to go ashore and stop the pirates even before they go to sea.” When the shipowners are hiring private armed guards, is it important that it is done in a safe and proper manner. The International Maritime Organization (IMO) has produced a guideline to shipowners on how to select qualified security companies. But according to Jan Fritz Hansen other factors also have to be considered by the shipowner before his ships are navigating piracy infected waters and armed guards are hired for their protection. The Danish Shipowners’ Association decided at the end of

12

The Danish Shipping Community sets a standard for the use of private armed guards

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“

When the ships shi are protected and as difficult as possible hijack, th the navy will be able to prioritize proactive to hijack actions against the pirates and their bases.

last year to contact other relevant stakeholders in the Danish shipping community to discuss the possibility to work out some additional guidelines for all parties. The result of that work was the publication on 25 January 2012 of a set of guidelines on the use of private armed guards.

As mentioned the Danish guidelines on the use of private armed guards were developed during a few months. Morten Glamsø, advisor at the Danish Shipowners’ Association describes how the guidelines were developed. “On the issue private armed guards we as shipowners’ representatives found it important to have an open dialogue with the seafarers unions, representing all categories of the crew members on board the ships; and it soon became clear, that the knowledge and views of the security industry were also needed.

Based on all the good inputs the guidelines were developed”.

Signatures to the guidelines are the Danish Shipowners’ Association, the Shipowners’ Association of 2010, the Danish Maritime Officers, the Danish Engineers’ Association, CO Sea, the United Federation of Danish Workers, and the Danish Trade Organisation for Safety and Security. Morten Glamsø explains that the guidelines are based both on national regulations and international recommendations such as the Best Management Practices and IMO circulars. Furthermore the guidelines are directed both at the shipowners, the unions and the security industry, and they consist of 16 points to be addressed when using armed guards.

Some of the factors the guidelines address are the need of conducting a through risk assessment before navigating piracy waters. The risk assessment shall ensure that proper ship protection measures are implemented, and that may include private armed guards as an integrated part. The security companies selected for the job must be qualified. Morten Glamsø stresses that the guards may only use their weapons in selfdefence or defence of others against an imminent threat to

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life, mobility or ship. And he continues: “It is also important that the shipowner is prepared. He must have plans and resources ready to handle a critical situation during the voyage such as a pirate attack or in worst case a hijacking.” Other factors the shipowner should consider are how to ensure a fully updated picture of the situation and the threats in the area.

When the security team embarks the ship, the master must ensure that the crew receives a briefing; including issues such as the guards› weapons handling and management, as well as how to behave during an eventual attack situation.

Jan Fritz Hansen concludes: «The signatures to the guidelines have agreed on evaluating the guidelines, and if necessary adjust them accordingly. Further it has been agreed that if anyone receives knowledge on issues relevant to the guidelines, the information will be shared with the rest of the stakeholders.» The guidelines are developed with Danish ships in mind; however, the Danish Shipowners' Association has encouraged all its members to follow the guidelines, regardless of flag when appropriate.

FACTS AND FIGURES The cost for the shipowners’ anti-piracy measures is estimated to amount to 200 - 300 USD annually.

The Danish Shipowners’ Association, the Shipowners’ Association of 2010, the Danish Maritime Officers, the Danish Engineers’ Association, CO Sea, the United Federation of Danish Workers, and the Danish Trade Organisation for Safety and Security have issued a joint set of guidelines on the use of armed guards.

The guidelines on the use of armed guards consist of 16 points to be considered by the shipowners, the unions and the security industry.

The intention of the guidelines is to ensure that private armed guards are used in a safe and proper manner.

The Danish Shipping Community sets a standard for the use of private armed guards

13

DANISH MARITIME ON RETROFITTING:

ENABLING EXISTING SHIPS TO MEET HIGH GREEN STANDARDS Ever growing interest in the Danish Retrofitting project, creates a positive basis for new solutions raising existing ships to a greener level. Danish Maritime strongly supports the development and urge politicians to secure the right framework conditions to create growth.

The Danish martime cluster is taking great effort in developing new ideas to meet the challenges from environmental and climatic demands of the future. One of the strong initiators in this respect is Danish Martime – an organization for the shipbuilding and supply industry.

Managing director, Jenny Braat emphasizes that industry’s interest in these matters is rapidly increasing and visible in the “Retrofitting project” which is performing very well.

- Already many companies have joined the project and more are coming in. We have supplemented the project with a common reference part, because of the importance of showing, that you actually get return of investment, when investing in ship projects, Jenny Braat says.

- The idea is that when the project is completely finished, we are going to launch the project results through a common platform.

- At the same time we will enter into dialog with shipowner’s associations, shipping companies and major shipyards in other countries.

- It's positive that so many companies support the project which have such a variety of exiting products.

The scrubber works - Jenny Braat points out that for instance the scrubber is an element where you can say: We have something that we know is working and we have a new legislation, which we know is coming into force. Is all about getting it installed aboard the ships around the world.

And it is important now to initiate the process to avoid a situation where capacity is too limited to meet the coming legal requirements, Jenny Braat says.

But in general she sees no problems for industri to cope with environmental orders to come.

- I think demand and supply will secure a smooth development,

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Enabling existing ships to meet high green standards

Danish Maritime is the meeting place for Danish producers of maritime equipment and ships. The association initiates cooperation between member businesses in a variety of areas including research, development and innovation, and it promotes favourable conditions for the Danish maritime industry.

and a continued green wave will benefit the Danish shipyards and shipping companies because of their generally high standards.

- This is an area, where we are clearly in front in Denmark, and naturally we should do everything to take advantage of this and get things going, she states and underlines, that the strong efforts by Danish companies and institutions in this field should be supported from the political side by securing good frame work conditions – in order to create growth and new jobs.

Jenny Braat has no indication that the economic crisis has any general negative effect on green commitment: - The companies continue the development and maintain the green thinking throughout their product development.

The crisis is primarily felt in the area of financing. When contracting new ships several companies face liquidity problems mainly because the banks are reluctant to lent out money to project in that size.

- From our point of view the situation differs from company to company, but in general healthy firms – like our members – are normally able to get the necessary funding, she says warning the bank against being too risk-adverse: - Our exports go to growing markets, and if Denmark is to get out of the crisis, it is important to enable the industry to borrow – on pure market terms, off course, she underlines.

By Finn Bruun

- It's positive that so many companies support the project.

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Shipping is getting greener, but…

Green incentives could be stronger - We are clearly moving towards greener shipping, Mogens Schrøder Bech, Head of Division, Danish Maritime Authority says. He is, however, underlining that the incentives for better performance are not covering all kind of shipping - On one hand we have the environmental side of it, which is about lower emissions of NOx, SOx and clean ballast water to avoid importing invasive species from other continents.

- On the other hand, we talk about energy efficiency or climate: One should not burn too much fuel to get the goods transported, he says.

- An IMO agreement on energy efficiency says that marine transport in 2025 on average should be 30 percent more efficient than it is today.

- In this case regulation drives the development. But when it comes to energy efficiency an entirely different factor comes in as well, namely the bottom line for the shipping companies. The more you can save on fuel, the cheaper you will be, he states.

- But one must be aware that the shipping companies are different. Looking at Maersk Line and their container business for instance, they pay the cost of fuel themselves and the same goes for the ships they charter. For other shipping companies the fuel is paid by the cargo owner.

Why do it - But in general, the Danish shipowners claim that chartered ships have a poorer energy performance than those owned and operated by themselves. That has to do with incentives. If a shipowner who charters out to a Danish shipowner does not get anything out of using a quality bottom paint, then why would he do that, he asks.

- Some shipping companies operate on spot markets, where typically the charterer is the one to pay for fuel. This means that these companies have no incentive to be fuel efficient, he explains.

The concept of incentive is quite topical at the moment. The Danish Maritime Fund in December decided to give money to a long-term research project at CBS, Copenhagen Business School, to study the incentive structures and energy efficiency, i.e. the climate dimension. The researcher is Rene Taudal Poulsen.

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- The many new technical options in this field will not necessarily be utilized, although they may be very good, if some completely skewed incentives exist in the market.

- More generally, one may question: What kind of financing models are actually used in shipping, Mogens Schroder Bech asks. He believes that the existing models typically are unable to appreciate an energy-efficient ship.

- Basically, you can see a ship in two dimensions. One is CAPEX (Capital Expenditures), and the second is OPEX (Operational Expenditure). Maybe OPEX will be reduced by making various investments in the ship – e.g. investing in new innovative engine technologies.

- But when financial institutions consider these calculations, they typically tend to look short-sighted at it and indicate that they do not believe that the market will value these investments, if a ship like that is going to be sold.

- So if you are in a market selling and buying ships, which you are not going to operate for a long period of time, you might never catch up with these energy investments, he says.

Regulation or CSR On the environmental side, the regulation is an important factor especially around sulfur, Nox and ballast water. Here the environmental requirements often mean additional expenditure for the owner. But whether it is the customer or the regulation that drives the evolution is not quite clear, Mogens Schrøder Bech thinks: - Wider considerations are involved because CSR plays an important part today. As I see it, the environmental issue is driven by both factors: SCR and regulation, he says.

Coping with sulfur Danish companies are well advanced Green Ship of the Future will soon present the results of a study based on a newly built Norden product tanker, sailing in the ECA region (Emission Control Areas).

- The question is: how do you get this product tanker to comply with the new sulfur regulations in the most economical way. There are three possibilities. One is marine gas oil, the other is to go over to gas, and the last is scrubbers, Mogens Schroeder Bech says.

By Finn Bruun

Shipping is getting greener, but… Green incentives could be stronger

15

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Specialised in on-site engine repairs

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SPECIALISED IN ON-SITE ENGINE REPAIRS Metalock Denmark is one of a few companies worldwide that masters on-site machining. A repair service that saves ship owners and insurance companies lots of time and money. Especially when the only alternative is a total dismantling of the engine that leaves the vessel inactive and unproductive for months.

Officially Metalock Denmark has been a part of MAN PrimeServ, MAN Diesel & Turbo’s after-sales service, since 2008, but the company retains its own brand. They are specialized in the on-site machining of crankshafts, bedplates and line boring of two- and four-stroke diesel engines, so there is a constant call for the 19 highly skilled service engineers, trained to solve salvage jobs and mechanical emergencies for the maritime industry all over the world.

- Right now we have two engineers from Metalock Denmark in La Paz, Mexico, to repair a bedplate on a large 2-stroke 900mm bore engine. Normally this job would take 3-4 months, but they will finish in 3-4 weeks based on their cutting edge tools that are constantly being upgraded or tweaked based on field service feedback. Status quo is not an option. We also have two engineers in India machining landing surfaces for cylinder liners, two in China repairing cylinder stud inserts and eight engineers doing crankshaft repairs on a semi-submersible oilrig, says Managing Director Frank Hansen, who has been in charge of Metalock since 2010.

SOLUTIONS ON THE SPOT Metalock service engineers are professional machinists that have been trained in-house to meet most of the challenges they face on-site. They are typically called out to re-establish a journal surface and geometry caused by bearing failures, but often encounter a complex range of interrelated mechanical problems that have to be solved under difficult conditions. It is a job that calls for special skills and competencies.

- Our employees have to combine good craftsmanship with entrepreneurial skill and inventiveness, says Frank Hansen.

Nothing is routine when it comes to the type of damages we see, and our engineers have to be able to find solutions on the spot.

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GIANT PLAYGROUND FOR CUTTING EDGE TECHNOLOGY Sometimes the challenges and solutions lead to the development of new tools, when the service engineers return to Denmark. At Metalock’s headquarters there is a 1200 m2 workshop, which according to Frank Hansen is used as a giant playground for developing tools.

- All our activities are on-site repairs. We never take parts in for repair, so our workshop is only used for preparing and developing tools to be used aboard vessels and on windmills, at power plants or turbine stations. For example, we have developed a new tool for line boring in the machining of bedplates for two-stroke engines With a traditional tool the total repair time for a bedplate on a two-stroke engine is 2-3 month. We can cut this machining down to 21 days with the new tool.

Other technical innovations enable us to re-machine the main bearing pocket without dismantling the crankshaft. No other company can offer that kind of service, says Frank Hansen, who is proud to add new inventions to Metalock’s cutting edge technology within rotating mobile tools like the lathe that can be built on-site around a damaged element.

From the maritime industry to wind mills and off shore On-site repairs save customers a small fortune in reducing yard time and putting the vessel back in service, and Metalock has plenty of work for the maritime industry. Yet they are planning to expand the market.

- Our expertise enables us to perform on-site machining of all rotating elements whether from turbine shafts or windmill elements. We also have customers within paper and steel rolling mills, but right now we see the biggest growth potential in the off shore industry. It is a conservative industry which can be hard to penetrate, yet I’m convinced we could make most machining a whole lot faster, easier and less costly than more traditional repairs. When it comes to mobile machining our performance is second to none, Frank Hansen concludes.

Specialised in on-site engine repairs

17

Christian Schack, General Secretary and Magnus Gary, Coordinator, Green Ship of the Future: We see growing interest in green projects.

Shipping in the Future:

Active green knowledge makes a difference The Danish industrial organization Green Ship of the Future is experiencing growing support for its efforts and is ready to take the next organizational step after COP15. The goal is to continue carrying out technical studies enabling partners to create concrete solutions for the ships.

- A year ago we were about 25 partners. Now we’re up on the 40th, project coordinator at Danish Green Ship of the Future, Gary Magnus, FORCE Technology says.

- We are organized to initiate new studies leading to concrete, large studies with many subprojects. A current example is a RoPax ferry study where we look into how to optimize the energy efficiency. The goal is to achieve an improvement of at least 25 percent, he states mentioning that the project is supported by the Danish Maritime Fund.

- Typically, we have projects where two or more companies are joining forces to develop something together.

- But just now we have constituted a new model where we, as a part of the organization adds two new areas that will make it more flexible and easier to join the Green Ship of the Future.

- Previously you had to be active in a project to take part, but this created the side effect that the most active partners completed their project, and thus no longer could participate. Therefore, we created subject-based focus groups with

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Shipping in the Future: Active green knowledge makes a difference

each their topic and leader, he says, mentioning that this could be ship performance, Sox abatement technologies, technology related to regulations, alternative fuels, LNG or ethanol and so on.

Focus groups have a particular topic and momentum in contrast to the second approach, the so called bubbles. Here we meet around some ideas with no obligation or demand for reporting. It’s fine, if something is achieved. If not, that’s ok too. And the participants decide how much they will involve the rest of the Green Ship of the Future organization, he says.

More green According to Magnus Gary there is no reason to believe that shipping would be less green. Quite the contrary.

- Politically, nobody wants to leave shipping for itself at this point. Furthermore there is the oil price factor. Every percent we can save on fuel, is a saving to the companies, he says, mentioning that the outside world as well takes interest in GSF’s activities.

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time under a number of conditions so that you can relate the results to your own business case to see if it pays. This is quite important to us.

- Recently there was interest in project participation from a foreign shipping company due to the proportion of our projects: They are near-to-the market and we focus on being able to demonstrate their effect, which means you can install the result on a ship and see if it meet your requirements, he says.

Development is becoming greener and attention seem to be growing, which in the eyes of Magnus Gary is linked to the GSF being a sound and healthy platform with the right focus.

- Some might wish for more marketing, but we are a technical forum, so developers must themselves be responsible for marketing the products. If we started selling, we would lose the credibility, which is the alpha and omega of such projects, he says.

He prefers not to highlight one project over another.

- But looking at consultants and classification companies’ area, their projects typically include LNG, which is of interest to shipowners right now. DNV is, for example is looking into the next step: Will it be bio-ethanol or ethanol or what?

Looking at the supply side, there are a lot different projects, all related to the trade of the companies involved.

- What determines the focus in our world is who participates and who brings knowledge to the market. I think participants are quite active and open - even though you can never develop without spending money. There are development hours to be paid, but that does not cool corporate interest, he says.

Among the major participants in Green Ship of the Future, is MAN Diesel, as many innovations are linked to the engine.

- MAN Diesel has invested much effort in development and in doing things differently. It has both been in their own interest and in other companies’ interest as they have been able to play ball with each other, Magnus Gary points out.

He points out, that it is necessary with useful results and findings to drive development and that the organizational changes have made member activities increase.

- The interest exists at all levels in the Danish maritime cluster as well as politically.

At the same time all parts of the maritime industry are participating. Seven shipping companies are involved, the suppliers are well represented as are consultants and R&D institutions and public agencies as Danish Maritime Authority, the Danish Environmental Protection Agency and interest groups as Danish Maritime and Danish Marine Group and educational institutions. Virtually the entire spectrum is covered.

- We are a technical organization, so the purely financial elements of shipping are not included.

- On the other hand, we always test whether the solutions we develop are worth installing.

We can make all sorts of green solutions that never materialize in practice, because they do not have a realistic payback. That’s not what we want, we prefer to show the payback

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No crisis slowdown The crisis has not been a drag on the green development - During the crisis, business has had more time, because of the lack of orders. Naturally cuts were made until things once again goes forward. So today organizations are more optimized which leaves little room for much else than to do what is it commercially important - namely to make money.

That is why the focus of development tend to go towards more down-to-earth project and why we have restructured and revised our vision, that originally was made up to COP15. By then is was about two low-emission marine studies where we before the summit should demonstrate and document how far you could bring it with existing technology by being smarter, says Magnus Gary, who emphasizes that the overall goal still is 90, 90 and 30 – i.e. 90 percent down on the Sox and Nox and 30 pct. down on CO2.

By Finn Bruun

Shipping in the Future: Active green knowledge makes a difference

19

Maybe cleaning in land:

In search for the right cleaning of ballast water Treatment of ballast water is so gigantic a task for shipping that Danish Shipowner’s Association want no stone left unturned in avoiding ending up with the wrong solutions.

Therefore, there are expectations for the outcome of an international conference on ballast water in Copenhagen in March, and therefore shipowners and ports have started a study with a very interesting question: Can ballast water be treated in land?

- It is important to put the item on the agenda to make the challenges clear. So far it has mostly been a discussion in the IMO, but now it is becoming more present and more important for shipowners, politicians and officials clearly to understand what the implementation of the Convention means. You will be bound - within a relatively short time - either to install equipment aboard the ships or otherwise ensure that the requirements of the Convention are met, head of division at Danish Shipowners’ Association, Peter Olsen, says.

- There are various technological solutions on the table, but it becomes very, very expensive. We are worried if we get enough environment for the money. We cannot be sure that environmental problems are solved: the invasive species come from ballast water as well as from fouling. And they can themselves immigrate.

- Thus we risk throwing money into ballast water solutions without being sure to avoid the invasive species. This needs to be investigated, he says.

20

Maybe cleaning in land: In search for the right cleaning of ballast water

Environment and Economy - We knew from the start that there are biological issues to consider, and we want to be green and do something good for the environment. But we must also ensure that we get the right solution. Many companies are under pressure financially, so we must carefully choose the environmental elements, which really matters, Peter Olsen says.

- The Convention (D2), says that ships are not allowed to discharge untreated water. If the Convention is adopted, it will come into effect from 2014. It actually allows you to hand over ballast water and thus avoid having equipment on board the ship itself. This is interesting to investigate further especially because of the retrofitting-issue. Ships are not built to have these large facilities onboard. In new ships, you can arrange for the large installations, it’s a lot harder on existing ships, he underlines.

Two ports - Therefore the project will explore if there is a way to create a business case around ballast water receiving installations ashore or perhaps on a barge in the port.

We will, however, still have the question of infrastructure. One port is not enough. Perhaps we could have a Danish port and a foreign port, each with its own facility, he says, mentioning that legislative issues might arise as well – like with sediment depositing - if you bring ballast water ashore.

- The project has just started and should be completed at the end of May or perhaps on the other side of summer, says Peter Olsen. He hopes to get an answer as to whether this is a viable option. The subject has attracted international attention because it will be very significant if you can hand in ballast water the way you do with waste, Peter Olsen says.

The project is underway in collaboration with A. P. Moller - Maersk, DFDS and Danish Ports and aims to find for ways to establish mobile reception facilities in ports as an alternative to installation of equipment to treat ballast water on board ships. Reception facilities may prove to be an interesting alternative.

By Finn Bruun

Daily news on www.danishmaritimemagazine.dk

Green progress:

Retrofitting creating new Danish impact The Retrofitting Project, which is made possible through support from the Danish Maritime Fund, was launched by Danish Maritime. The project will strengthen the Danish maritime companies and offer better and more climate- and environment-friendly products and solutions and subsequent service in order to improve business competitiveness.

In recent years the debate on environmental and climate change has intensified and led to an increased focus on environmentally friendly behavior and practices in connection with the operation of ships.

This strong climatic and environmental focus creates a need for new solutions for the shipping companies; solutions based on green values giving Danish maritime companies new business opportunities. The existing fleet, including ships that have already been contracted and will be delivered within the next few years, is now historically high, and for many years it will represent the dominant part of the fleet.

This project focuses on retrofitting the existing fleet, as this already in the very short term, could contribute to a significant reduction in emissions of CO2, NOx, SOx. Process The Retrofitting Project consists of three process phases: identification, analysis and development.

There are a myriad of regulatory requirements for shipping and its actors within safety at sea, and within maritime climate and environmental impact. In the mapping phase, we focus on the major climate and environmental challenges facing the shipping industry, including emissions to air (air pollution), discharges into water (water pollution) and waste and recycling. Recycling includes in addition to ship dismantling recycling across the listed challenges. In parallel we map existing / new products / solutions and technologies based on the Danish maritime companies and focusing on key challenges. Subsequently, we analyze the business and funding opportunities, and establish project teams and development collaborations. Then define concrete projects, partnerships and systems solutions (packages).

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The last phase is the development of further climate-friendly, economical, viable and effective solutions.

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Green progress: Retrofitting creating new Danish impact

21

GREEN SHIP OF THE FUTURE:

A CASCADE OF NEW GREEN SOLUTIONS FOR ROPAX SHIPS The Danish technical forum Green Ship of the Future is initiating a new ‘low-emission’ Ro/Pax ferry study.

The new ‘low emission’ study will be driven by a large part of the companies in Green Ship of the Future and will investigate the possibilities of reducing emissions from a Ro-Pax ferry.

The project is still in its early stages, but focus will be on the technical elements within machinery and propulsion, however, it is also expected that other areas affecting emissions will be investigated.

Solid benchmarking The study will be performed on an existing Ro-Pax with an already known operation profile, making it possible to benchmark the emission reductions against existing data.

In the study, Green Ship of the Future and its members are initiating new projects concerning HVAC (Heating, Ventilation and Air Conditioning), insulation, windows and lighting, but there might also be projects within investigating how the design of the cargo deck can decrease the loading time in port and thereby help decrease the overall ship speed at sea and still keep schedule with a reduction of emissions as a result, The low emission Ro-Pax ferry study is to be led by the Danish OSKShipTech who holds more than 40 years of experience as consulting naval architects and marine engineers. The study is partly funded by the Danish Maritime Fund.

The participants are: Cavotech MoorMaster, Danish Shipowners’ Association, Desmi, Deif, DNV, FORCE Technology, Johnson Controls, Lloyd’s Register, Martec, Novenco, OSK-ShipTech, RockWool, Saint Gobain Marine Applications, Scanel International, Vestergaard Marine Servic, Aarhus School of Marine and Technical Engineering.

Photo: Emission from ships can be significantly reduced.

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Green Ship of the Future: A cascade of new green solutions for RoPax ships

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New generation of SCR technology for NOx reduction Competitive Danish Conditions Effective dialog creates envy Against the flow

Stronger European commitment to combat piracy Shipping – Denmark’s biggest export business Security rules ought to be revisited

Niels Smedegaard’s turn around:

Success for DFDS where others are depressed It works:

Continued strong Danish focus on combating piracy Shipowners fear wasted investments Making ballast water treatment cheaper

Nor-Shipping Protecting the interest of European shipping Skyrocketing demand for offshore wind power Danish shipping a strong workhorse for society

Somali pirates are taking the world

hostage

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