Danish Maritime Magazine 03-2012

M aritime DANISH

ErhvervsMagasinerne

MAGAZINE 3 - 2012

Minister for Business and Growth:

Quality shipping is the key to sustainable growth Dry bulk operator sailing against the tide Piracy is slowing down

Quality shipping is the key to sustainable growth In Denmark, we have for many years aimed at high quality across the entire spectrum of shipping – health, safety, the environment and the climate. This has given Denmark a unique position as a significant maritime nation characterised by growth and a sound development.

Our focus on quality shipping also means that we have knowledge and expertise to construct the ships of the future. Be it the optimum use of fuel, the perfect hull design or technology enhancing navigational safety, Danish companies offer some of the world’s most modern and innovative solutions.

The Danish maritime cluster possesses the know-how necessary to create the solutions that will form the future of quality shipping. This position has been gained through continuous research and development over a long span of years. As a small country with long maritime traditions, the Danish maritime cluster is also well-known for its strong ability to cooperate and use the strengths of one another.

The maritime world is concerned about the environment and the climate. And we are all facing a great challenge in meeting new demands and standards that will ensure sustainable maritime transport in the future. Therefore, I am pleased that Danish technology and knowhow not only contribute to improved finances and increased growth, but also to environmentally friendly solutions. By focusing on green shipping both the financial and the environmental bottom lines are lifted. I believe that green shipping is the future – and those who dare aim at climate and environmentally friendly solutions will gain a competitive advantage. A competitive advantage that can be estimated in euros, dollars and yen and that will also be of importance to the world around us.

Ole Sohn Minister for Business and Growth

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Quality shipping is the key to sustainable growth

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M ARITIME DANISH

ERHVERVSMAGASINERNE

3-2012

MAGAZINE 3 - 2012

4 Quality shipping is the key to sustainable growth 6 Dry bulk operator sailing against the tide 8 New EU initiative to built capacity in pirate areas 10 From shipyard industry to advanced technology 12 Frederikshavn leads the way to the future of the maritime industry 14 Piracy is slowing down: Now is the time to hold on 16 A2SEA meets the future sailing 18 Efficient green approach to the future

Minister for Business and Growth:

Quality shipping is the Quality shipping is the key to sustainable growth Dry bulk operator sailing against the tide Piracy is slowing down

Ultrabulk Shipping A/S

ISSN: 1903-5888 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: 5th of October 2012 Advisory Board: Chairman CEO Klaus Kjærulf, SeaMall Jan Fritz Hansen, Vice Executive President in the Danish Shipowners’ Association Chairman Per Jørgensen, Federation Internationale des Cadres des Transport - FICT 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 Martin Uhlenfeldt, MaritimeDanmark.dk Editor René Wittendorff Copyright

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Dry bulk operator sailing against the tide In July, Ultrabulk confirmed the order of three up to five newbuilt handysize bulkers of 36000-38,000 DWT scheduled for delivery in 2014.

The announcement stands out in a market characterized by over capacity and severe rate pressure, yet Ultrabulk is not a company to take undue risks.

Several times during the conversation, CEO Per Lange stresses that Ultrabulk is in the dry bulk business as an operator - not speculators - but they have an obligation to renew the fleet in line with customer needs.

- Our investments follow the development in our cargo book, where long term contracts indicate that we will need a future fleet of 26 vessels to balance the loads. Furthermore, we want to minimize the environmental impact of our activities, and the new generation super ECO-type bulkers can improve the fuel efficiency with up to 15% and reduce CO2 emissions correspondingly, Per Lange explains.

SIZE IS NOT AN OBJECTIVE Long term customer relations are the result of Ultrabulk’s philosophy. Since 2006 they have built their business around the core values Excellence, Integrity and Enthusiasm in order to become ‘A Partner You Can Trust’. And the market has responded with confidence.

- For us size is not an objective in itself. We have already got the critical mass we need in key markets, so there is

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Dry bulk operator sailing against the tide

no need to force further expansion. Our aim is to grow and increase our business through the positive development of our partners in their industry. Growth will improve our competitive edge, but it is not an end in itself, and it must be achieved on the right premises, says Per Lange.

Today, Ultrabulk has the commercial control of 90-125 vessels of which 25-27 are long term commitments. 10 remain to be delivered by the end of 2014. The cargo commitments linked to these vessels comprise all kinds of dry bulk but the main commodities are coal, fertilizer and steels.

READY FOR A NORMALIZATION OF THE MARKET As most other ship owners in the dry bulk industry Ultrabulk faces immediate challenges in terms of a high risk partnerships. In the present market some players will inevitably perish, and all business associates bleed if one company files for bankruptcy protection.

- All agreements and contracts have to be scrutinized to access the risk, and it is better to be safe than sorry. We’d rather turn down good business than accept depreciations,

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but you need deep market insight to know when to stop and when to go. It’s not a healthy business environment.

But through exposure control we have managed to ensure a stable development.

Still, Per Lange believes the tide will turn in 2-3 years’ time, so that the over capacity will be absorbed and international trade relations will normalize. That trend will coincide with the inauguration of our Ultrabulk’s vessels. Meanwhile, long term contracts and a conservative growth strategy reduce economic vulnerability.

BUILDING TRUST The mutual trust needed to establish long term relations is based on personal knowledge and an impeccable track record. Through the years Ultrabulk has proved its worth as a reliable operator with an ability to optimize operations to the benefit of all parties involved.

As an example of Ultrabulk’s optimization efforts, Per Lange mentions investments in load handling systems or storage facilities in certain ports, where old equipment or insufficient warehousing may slow down or jeopardize operations.

- In most cases, relatively small investments can lead to huge improvements for the customers. The most important thing is our ability to listen to the customer’s needs and requirements and to use the knowhow and experience we have gained from similar operations elsewhere to improve the general setup, Per Lange states.

The emphasis on experience and integrity means that Ultrabulk strives to maintain a low turnover on the staff of 90 employed at 8 strategically located offices around the world.

INCREASED FOCUS ON THE FAR EAST Per Lange points to location as one of the main challenges of the future. The dry bulk carriers have their headquarters in Copenhagen, but most of the traffic growth is in the Far East, which means increased focus on the branch offices in Beijing, Hong Kong and Singapore.

Ultrabulk is also represented in Hamburg, New York, Rio de Janeiro and Santiago di Chile, and the South American connection reveals the corporate ownership. Ultrabulk is fully owned by the Ultramar Group which is one of the leading companies in the Latin American shipping industry. Yet the Ultramar Group has decided to place the HQ for their dry bulk division in Copenhagen in recognition of the expertise accumulated here over the years.

Same team and management behind changing names Ultrabulk traces its history back to the 19th century with East Asiatic Company and ‘Rederiet Myren’ that initiated shipping activities in the 1890s.

In an effort to increase focus on core business, EAC sold off the shipping activities in 1997 to Tschudi and Eitzen. In 2003 the dry cargo bulk activities became Eitzen Bulk Shipping A/S which merged with D/S Orion A/S, before being sold to the Ultragas Group in Chile. In 2010, the company changed name to U-SEA Bulk and in January 2012 to Ultrabulk Shipping A/S following a merger of all the dry bulk activities in the Ultragas Group.

But despite the rapidly changing names, the management and team behind the enterprise has remained more or less intact, and with a new global marketing platform and a large and renewed fleet Ultrabulk is stronger than ever and better able to meet client’s needs within the handysize, supramax and panamax segments.

FACTS 1 January 2012 U-SEA Bulk Shipping A/S merged with a Latin American, dry bulk, sister company under the name Ultrabulk Shipping A/S. In 2011 Ultrabulk’s consolidated total cargo carryings amounted to 34,6 million tons generating revenues of around USD 800 million.

Ultrabulk is a part of the Ultramar Group - one of the leading companies in the Latin American shipping industry The Ultramar Group covers four business areas: Ultragas Tankers, Product Carriers, Gas Carriers, Chemical Carriers, Bulk Carriers (Including Ultrabulk) Liner Services and Shipmanagement Ultratug Harbour Tugboats, Salvage and Offshore Support

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Ultramar Shipping Agencies, Container Terminals, Stevedoring, Port investments and operation, Airline representation Ultraterra Energy, Real Estate, Stocks and other shipping related investments.

Dry bulk operator sailing against the tide

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New EU initiative to built capacity in pirate areas A new civilian Common Security and Defence Policy (CSDP) mission, EUCAP Nestor, is now going to support regional maritime capacity-building in the Horn of Africa and Western Indian Ocean states.

EUCAP Nestor is part of the EU’s comprehensive approach to fighting piracy and instability in the region. A team of around 175 people will work to reinforce the capacity of states in the region to effectively govern their territorial waters. Djibouti, Kenya, the Seychelles and Somalia have accepted the EU’s offer of assistance. The mission will be extended to support Tanzania as soon as possible.

EU High Representative Catherine Ashton said: - By launching this new mission in the Horn of Africa, the EU is highlighting once again its leading role in the fight against piracy. Under the leadership of the countries themselves, I hope that EUCAP !estor will create lasting solutions to the scourge of piracy.

The new mission has two main objectives: strengthening the sea-going maritime capacities in the countries in the region (with the exception of Somalia) and, in Somalia, the training of a coastal police force as well as of judges. It will give expert advice on legal, policy and operational matters concerning maritime security, deliver coast guard training and help to procure the necessary equipment.

HORN OF AFRICA EUCAP Nestor is embedded in the EU strategic framework for the Horn of Africa and complementary to the other two CSDP missions in the region: EU NAVFOR Atalanta, contributing to the repression of piracy and to the protection of food aid shipments, and EUTM Somalia, which is training Somali security forces. In order to facilitate coordination between the three missions, the EU Operations Centre has been activated. It will also support the Civilian Operation Commander with military expertise during the planning and conduct of EUCAP NESTOR. EUCAP Nestor will initially last for two years and have its headquarters in Djibouti. Training is to take place both in the Djibouti regional training centre as well as in the countries concerned. A budget of EUR 22.8 million has been allocated.

By Finn Bruun

The Danish warship “Absalon” operates close to shore to intercept pirate vessels.

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New EU initiative to built capacity in pirate areas

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Service at the Gate to the Baltic

FREDERIKSHAVN

www.maritime-network.dk

From shipyard industry to advanced technology Frederikshavn has always been a city with a strong maritime industry. It used to be the two shipyards which made the city famous outside Denmark’s borders, but today, a unique combination of various suppliers to the maritime market all over the world puts the city on the world map.

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The siren has not been silenced. Its hooting still sounds over the port and the city of Frederikshavn every day after work.

Even if the times with two big shipyards are now a thing of the past, the well-known sound of the siren brings back memories of what once was. Like an echo of a time gone by. Like a reminder of what has come instead. And at the same time, like a promising signal about everything which is to come.

Frederikshavn, Denmark’s proud, old shipyard city at the gate to the Baltic, inside the Skaw, is also in 2012 a city with a strong maritime industry. And thereby, Frederikshavn is living proof of the old saying that it possible to emerge strengthened from a crisis. The enterprises in the maritime cluster in Frederikshavn have managed to build on the best of the existing foundation, with the maintenance shipyard Orskov Yard as the central player.

For generations, the lives of the inhabitants of Frederikshavn were closely linked to the two shipyards: Danyard and Orskov.

Fathers and sons had worn the blue boiler suit and had lived their working lives based on the regular hooting of the siren.

But towards the end of the 1990s, the iron fist of globalisation

this hard blow is an achievement without comparison. An enormous effort, which was not just made possible because of the well-known perseverance of the inhabitants of the region. The biggest player in the change process has actually been the willingness to change, which has been shown and which is still being shown by the inhabitants of Frederikshavn and by the maritime enterprises.

Ship engines are still being built at MAN Diesel & Turbo.

Ships are still setting out from the family-owned Orskov Yard, which, with success, has transformed itself into a modern repair yard. Engines, equipment, and propellers are being sold, and assembling, repair work, fitting, and renovation are being performed. And even if the most recent new ship left the old yard more than ten years ago, new marine equipment is still being built in Frederikshavn.

At the old yard areas at the port, there is still a wealth of life.

Signs on the fronts testify to a diversity of enterprises which each fills a niche in a still more global market – and which together make up a strong unity, which can meet any requirement from clients in the maritime business all over the world.

hit with one single blow right down in the middle of the city’s strong life nerve – and left an open wound. The city – and a whole region – lost more than 7000 jobs, at the same time.

The fact that the inhabitants of Frederikshavn, their city, their region, and their workplaces were able to recover at all after

To not just survive, but to develop into a success on the ruins of a defeat – that is an achievement which is very much based on local enterprises and local labour. Together with the ability and the will to have new ideas they still possess the same core competencies as ten and twenty years ago. Qualifications, which it

From shipyard industry to advanced technology

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would be foolish to throw away when the abilities, just as well, can be used with a new – and more future-proof – purpose.

Maritime Network Frederikshavn have put new innovative solutions and production forms on the agenda. All competencies in the area of ship repair and equipment are here, and the new enterprises, which were established in the wake of the closing down of the shipyards, are all highly specialized in each their area. This means that the enterprises in the maritime network are extremely competitive, when they pull together both with regard to time and quality.

Today, there is an incredibly strong maritime sector in and around Frederikshavn. A large number of sub-suppliers employ a growing number of people in the region. And the maritime industry is doing well. In the wake of the global financial crisis, the maritime industry is again back at full power. At the same time, the whole Frederikshavn area is experiencing a considerable growth in the number of entrepreneurs. Many of the new enterprises establish themselves in the manual trades, which, in many instances, also support the maritime industry.

But the greatest strength of Maritime Network Frederikshavn is that everybody is able to co-operate – and do it – in many different combinations. Both main and sub-contractors and sub-suppliers differ from job to job, and this freely flowing co-operation is something completely unique, which creates great value – not just to the enterprises involved, but also to their clients.

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Maritime Network Frederikshavn is building on a strong story with proud traditions. Both men and women in blue boiler suits are still cycling at the port. The timeless hooting of the whistle is still carried off by the wind and signals the end of another working day every day – and, at the same time, the hooting carries with it the memories of a proud era, which is definitively over, and the promise of a new future, which, against all odds, has lifted the maritime industry of Frederikshavn well into a new millennium.

By Anne Falck FACTS ON MARITIME NETWORK FREDERIKSHAVN: Maritime Network Frederikshavn consists of 40 different enterprises, which together are able to deliver a broad range of solutions primarily to the maritime industry and the international off shore industry.

All enterprises in Maritime Network Frederikshavn carry out their activities from the port of Frederikshavn.

The port of Frederikshavn is placed at the crossroads between the Baltic states and the North Sea and is therefore a very important link in the international trade chain.

Read more on: www.maritimenetwork.dk Phone +45 98 45 80 14 E-mail: info@maritime-network.dk

From shipyard industry to advanced technology

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Frederikshavn leads the way to the future of the maritime industry Maritime Network Frederikshavn is a unique supplier of quality solutions for the maritime industry. The enterprises in the network are leading in new technology and product innovation to the advantage of shipping companies and the off-shore industry around the globe.

There are almost no limits to what they are able to do when they join forces. Maritime Network Frederikshavn is a unique network, where solutions which create value for the client are more important than competition between the network members. Maritime Network Frederikshavn is taking the lead when it comes to quality solutions, delivery guarantee, new technology, environmentally friendly steps, and product innovation in international shipping.

Some ten strong, maritime enterprises make up the core of Maritime Network Frederikshavn, which has a broad range of competencies in production, ship repair, and service. Between them, they are capable of delivering integrated solutions from routine maintenance and acute repair of damages to largescale renovations and modernisations.

The world’s biggest fishing vessel, Norwegian Kvannøy, equipped with Humid Air Motor (HAM system), has sailed out from Frederikshavn. It is also here in Frederikshavn that the Danish warships are renovated, before they sail out to give protection in waters filled with pirates. Maritime Network Frederikshavn solved an “impossible” task for the Swedish navy – the building of a non-magnetic crane for the navy’s mine detector ships. And a large number of enterprises in Frederikshavn were suppliers when the Norwegian shipping company Siem this fall had four Anchor Handling Tug Supply ships (AHTS ships) renovated for sailing in Brasil.

- We have just entered into a five-year service agreement on all lifting and life-saving equipment on Skandi Aker (ship of the year 2010). We would probably not have been able to win that order, if we did not have the co-operation possibilities of the network, says Ian Fleming McCurdie, Sales and Project Manager, Hytek A/S. Flexibility and quality are the strongest competition parameters for the maritime network.

- Time, quality, and security of supply mean a great deal to our clients, and our great advantage is that we meet the high requirements in this area, says Anders Hecht-Pedersen, CEO of Nicon Industries A/S. The enterprises in Frederikshavn cannot compete with lower paid labour in other countries, but, in return, they can do something else, which is of great value to many of their clients.

- Our co-operation is completely unique, and we have all com-

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Frederikshavn leads the way to the future

petencies within quite a short geographical distance. Machine work, electricity work, insulation, painting, sandblasting, hydraulics, steel work, plumbing, and CNC-cutting, just to mention a few, says Ole Nygaard, CEO of Victor A/S. The enterprises in Maritime Network Frederikshavn are able to deliver solutions in 95 per cent or more of all normal tasks in the maritime area. If the physical distance between the member enterprises was longer, it would make the co-operation more expensive and more difficult.

The co-operation works perfectly, because the network is not bigger than it is. It is possible for everybody to know each other.

The mutual trust is great, and the co-operation works between all enterprises of the network dependent on the current task.

- We use the network all we can. You could say that we work for the same clients, but operate in different segments. It also means that we call each other if we hear of jobs outside our own area, says Vagner Jensen, Regional Manager of Norisol A/S. The fact that the individual enterprise is good at giving jobs to those enterprises which will solve them best also means that the network members get something in return. But, first and foremost, the advantage lies with the clients, who get the best possible solution every time. And if a problem should occur in the process, help is close at hand, because if the supplier cannot handle it alone, it is certain that others in the network can.

By Anne Falck

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Piracy is slowing down:

Now is the time to hold on The strong international anti-piracy effort off Africa´s Horn now seems to be successful. The number of hijacked ships and crews has dropped significantly and pirates so far have been unable to innovate new tactics.

However it’s too early to celebrate – piracy may move to other areas or re-emerge. “Now, we must hold on”, underlines Jan Fritz Hansen, deputy director in Danish Shipowner’s Association and chairman of the European shipowner’s anti-piracy commitee.

The actual piracy problem is tightly connected to the waters off Somalia and in the Indian Ocean. Here the threat of hijacks is serious and constant. However, piracy is not unknown in other parts of the world from Malacca to South America.

A number of attacks and boardings of ships this year has been reported from of the Brazilian cost as well as on the western side of the continent off Columbia, Peru and Ecuador. However, these attacks consist of robberies rather than hijacknings.

The same goes for pirate activities in the Guinea Bay, where, however, the tendency goes from bad to worse - without reaching the level of the Somali problem.

The latest update from The IMB Piracy Report Center, which receives and disseminates reports of piracy and armed robbery 24 hours a day across the globe shows, that the number of incidents has rapidly dropped in 2012: 177 incidents were reported in the first six months of 2012, compared to 266 incidents for the same period in 2011.

The optimism is, however, mixed with concern for an increasing number of attacks off West Africa in the Gulf of Guinea.

So far 32 incident including five hijackings has occurred of which 17 happened in Nigerian waters.

STRONG EFFORT The Danish Shipowner's Association has ever since the pirate problem gained momentum, been struggling to find solutions on both short term and long term involving shipping

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Piracy is slowing down: Now is the time to hold on

companies, authorities and international organizations. Deputy director Jan Fritz Hansen is pleased that the Somali piracy problem has been countered by international cooperation.

- The effort has been strong this year and it seems to work. Pirates have not really had the luck. The number and incidents has fallen by 30 pct. now holding 6-7 ships and less than 200 hostages compared to more than 1.000 in previous years. So now is the time to stick to it and not allow piracy to gather new strength, he says naming especially three elements as key factors: - Firstly the navies have been very active down there and has lately moved closer to the coast. The Danish warship “Absalon” has showed the way with interceptions near land and the EU naval force NAVFOR has followed up by direct action and destroyed pirate shore installations.

-The international naval forces are working really well together in spite of many different coalitions and origins. They are getting better at chasing pirates in line with their growing experience, - Meanwhile, owners have been much better using the latest best practice procedures and actions - barbed wire, electric fences and other passive defensive measures. A year or two ago only half of them lived up to everything needed. Today the naval forces send reports to the flag state and shipowner, whenever a ship does not have barbed wire or similar. Few ships do not follow procedures, making it difficult for pirates.

- In addition, the ultimate fact that many of ships today have armed guards on board. This is an effective defense against the pirates, and there has not yet taken any ship with these guards, Jan Fritz Hansen underlines.

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The strong naval engagement has driven down the number of pirate’s attacks and dramatically lowered their success rate.

has been unable to establish a holistic approach down there and so have big players such as the Far East, Russia and USA. And NATO’s effort is militarily only, Jan Fritz Hansen says.

- Therefore we turn to the EU - which has everything from diplomacy to military and aid policies - while participating in the trade itself. The EU external foreign service (High Representative of the European Union for Foreign Affairs and Security Policy, which is not part of the Commission) has a good strategy in the piracy issue, which also contains elements from the Danish strategy, and it now employs about 200 consultants for assistance on land and at sea while NAVFOR has got a strengthened mandate. So the EU has taken quiet a portion of the challenge.

- The EU Directorate of Transport is satisfied that the EU Foreign Service has addressed the problem. We’ve always said that piracy is not only a transport problem, but a trade problem, and thus a world problem. But one should not forget the toolbox, he warns.

IMO doing well with Best Management Practice, and we are pleased that the EU Transport Commissioner backs the certi-

- Meanwhile there is an ongoing long term effort with capacity building in the country such as coast guard and security forces in land etc. This has not yet been completed and neither has the “follow the money and backers” tactic. But it is all underway.

- We must maintain the long haul, until the situation is resolved in the country. It’s going to take time, he says adding: No matter how pleased we are with the improved security results so far, we cannot allow ourselves to relax.

WEST AFRICA - Today we also have to keep an eye internationally with West Africa, where things perhaps are not quite so scary as in Somalia but seriously enough with multiple episodes.

However, opportunities for cooperation with the countries concerned and their navies are probably better, he says.

- So far we are getting rid of the scourge, but we can be concerned that new business models will emerge from the pirates’ side, assuming that their backers are hungry now to grab the gold. But so far we have seen no new initiatives. We – as pirates’ victims - have been better to step up our expertise and learning process and have become much better at protecting ourselves and introduce new kinds of equipment. Pirates have not come up with innovation since day one - apart from the concept of mother ships, he underlines.

EU UP FRONT The Danish ship owners prefer to have the UN as much as possible on the pitch throughout the piracy issue.

- The United Nations has made good resolutions, and work well in developing standards for security firms. But the UN

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fication by armed guards, which the fall is followed by an ISO standard, he says.

- We have the issue of permission to sail through the Suez with guards and negotiations with Kenya, which has strict weapons laws, and there are problems with calls in India and South Africa, when carrying armed guards. It would be natural for the Directorate to step in here, so we can create a model for use of armed guards based on high quality standards we operate, he says, and stresses that the whole thing not can be handled by the EU Foreign service alone. There is a need here for the industry’s resort directorate, Jan Fritz Hansen underlines.

EXPORT OF PIRACY MODEL - South American pirate problems mainly exist around the ports and tend to be more robbery than seizure, where we in West Africa see a combination of piracy and robbery. Here they have taken ships and emptied them in an organized manner, but we also see small canoe attacks. In the Malacca region, governments have reasonable control over things. So Somalia remains the biggest problem although there always will be crime around, says Jan Fritz Hansen, who in spite of the enormous revenues for backers do not think they have the capacity to relocate entire pirate organizations to other parts of the world.

- But it is clear that Somali piracy seems to be inspiring to others, so therefore there is an important signal in striking against nuisance, he says.

By Finn Bruun

Piracy is slowing down: Now is the time to hold on

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A2SEA meets the future sailing Chinese shipyard workers with shining safety helmets were proud looking, when big confetti canons at the end of July sent cascades of coloured pieces of papers up in the sky at the COSCO Nantong Shipyard in Qidong so as to mark the naming ceremony of A2SEA’s new heavy lift vessel – Sea Installer.

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Sea Installer is, as the first of A2SEA’s heavy lift vessels, from the beginning built to install and service off shore wind turbines. With its heavy crane and a 3,200 square metres big loading area it is able to bring along and install up to 10 large off shore wind turbines at the time.

In beginning of 2014, Sea Installer will be accompanied by a sister vessel, which is being built following the same drawings as Sea Installer, apart from the big mounting crane, which will have a capacity of 900 tonnes – 100 tonnes more than the crane onboard Sea Installer.

- Sea Installer means that we can meet the demand – that we can still be a factor in the market, says CEO in A2SEA, Jens F. Hansen.

Are you preparing new ship orders?

- No, besides Sea Installer’s sister vessel, which we made a contract for in March, we have no current plans of ordering more capacity, Jens F. Hansen emphasizes.

The vessel’s large loading area means that Sea Installer has to sail fewer times to and from the supply base to get new wind turbines. It reduces the time it takes to mount wind farms and thus reduces the large capital expenditures.

Sea Installer is at the same time equipped with four gigantic

A2SEA is not the only one to take delivery of new, large heavy lift vessels with much bigger capacity. The competitors get new vessels as well. Right now it seems, however, that they all will have enough work.

legs, which make it possible for the vessel to operate at water depths of up to 45 metres – a clear competitive advantage in a market, where the largest off shore wind turbines move still further away from the coast.

- A great deal of new vessels are on their way to be delivered in 2012 and 2013, and it therefore seems to be enough capacity to meet the demand until 2016. At that time, there will probably be a need for further capacity again, Jens F. Hansen says.

A2SEA meets the future sailing

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It is a consequence of the fact that some of the heavy lift vessels, which operate at the market today, no longer will be relevant – that means that they will not be able to handle the sizes of turbines and will not be able to operate at the depths, which will be relevant at that time.

The founder of A2SEA, Kurt Thomsen, was among the first to see the big opportunities, which the new market for mounting of off shore wind turbines would create. He established A2SEA in 2000, and when the mounting of off shore wind turbines began to gain momentum for real a couple of years later, A2SEA were at the proper time and place.

The shipping company’s first two heavy lift vessels, M/S Ocean Ady – which today is named Sea Energy, and M/S Ocean Hanne – which today is named Sea Power, were older vessels, which were rebuilt for their new purpose in 2001. The ships gave A2SEA a strong position at the market, and from 2002 until 2006, A2SEA won almost all contracts, which were put out to tender.

When the market for mounting of off shore wind turbines exploded in 2006, A2SEA were really well-placed with experiences not only from the Danish market, but also from Holland and Great Britain.

Since then events followed each other in quick succession, and the shipping company is today global market leader within installation of off shore wind turbines. All in all, A2SEA has installed more than 60 per cent of the worlds off shore wind turbines.

In 2009, the company’s biggest customer, DONG Energy, took over the majority of the company, and one year later, the wind turbine producer Siemens was also included in the group of owners. DONG Energy today has 51 per cent of the shares, while Siemens has the rest of the shares.

You are owned by DONG and Siemens. Does it mean that you only work for them?

- Certainly not. We are doing jobs for many other companies than DONG Energy, and we are also not only installing Siemens wind turbines, Jens F. Hansen says.

What about the projects that DONG puts out to tender. Are you from the start sure to get them?

-No, and we don’t necessarily have the capacity to solve all the needs that DONG Energy has. We place a bid at the same conditions as others, the CEO points out.

Although A2SEA not from the start is sure to get the orders, it is a clear advantage to have a well-padded circle of owners. Heavy lift vessels cost much money, and in a financial ice age it is not a matter of course to get even very profitable projects financed.

Daily news on www.maritimedanmark.dk

FACTS Sea Installer: • Length: 132 m • Breadth: 39 m • Draft: 5.8 m • Speed: 12 knots • Crane capacity: 900 tons • Loading area: 3200 sq.m.

• Loading capacity: 5000 tons • Able to jack-up at water depths of up to 45 m • Capable of carrying eight to ten offshore wind turbines (towers, nacelles and blades) • Able to carry up 60 people (crew and installation personnel)

A2SEA had to place more than 800 million DKK in China in order to get Sea Installer built. Before the contract was signed, A2SEA studied the market very carefully. Only very few shipyards in the world had the resources and the knowledge, which were necessary to build such an advanced vessel.

Nantong Cosco Ship Engineering was chosen. It is China’s largest and the world’s second largest shipyard. A2SEA’s experiences with the shipyard are so good that there was no doubt that the sister vessel also should be built there.

When Sea Installer in the autumn arrives in Europe and start installing the first off shore wind turbines, it will soon be noticeable in the books of A2SEA. How do you expect your sales to develop in the years to come?

- It is relatively simple. In line with the increase of capacity of vessels, our sales will increase correspondingly, Jens F. Hansen says, while he does not want to put more precise figures at the expectations.

A2SEA meets the future sailing

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SMM in September

Efficient green approach to the future When will world economy finally return to growth and full speed ahead?

There’s been several ups and downs in the prognoses lately, but one thing is sure: The SMM in Hamburg is right on track to deliver. Sold out as always and with a strong maritime future in focus – both when it comes to efficiency and true green progress - which issues might very well support one another.

- We are going through a period of change in shipping, towards more ecological propulsion systems, says Jan Volkert Wibel, Head of Marine Engines & Petroleum at Zeppelin Power Systems, summing up the focus for many of the maritime professionals visiting the 90.000 m2 SMM, shipbuilding, machinery & marine technology international trade fair hamburg, at the Hamburg Fair site from 4 to 7 September.

The same goes for Finnish engine builder Wärtsilä who is changing its two-stroke engine programme over to longstroke engines. They use up to 10 pct. less fuel than conventional engines, and run at relatively low engine speeds. That permits the use of bigger propellers, with corresponding efficiency benefits. The new X92 series is designed such that

18

Efficient green approach to the future

it is also suitable for the largest container vessels currently planned, Wártsilä informs.

Also the use of LNG is a new challenging focus for the shipping industry. The viability of this concept for container ships has just been demonstrated by MAN Diesel Turbo, one of the world’s leading engine manufacturers, in a joint study with classification society Germanischer Lloyd.

- The LNG plant can pay for itself in less than two years in smaller ships that spend two thirds of their time in ECAs,” says Dr. Pierre C. Sames, Head of Research & Development at GL. The Norwegian classification society DNV has already presented a number of design studies for future ships powered by LNG.

Daily news on www.maritimedanmark.dk

But not only advanced solutions and equipment for new built ships are on display at the SMM. The complete cyclus is approached showing that “refitting” is gaining importance, by retrofitting new technologies to currently operating ships.

Operation in ECAs is a key reason for using LNG propulsion systems, and above all for retrofitting scrubber systems to remove emissions from exhaust gas. And from 2016 onwards, following majority ratification of the ballast water convention, its rules could be applicable to nearly the whole of the world’s merchant fleet – an enormous market.

- A scrubber, including its installation, costs several million, and the cost of a ballast water treatment plant can also go into seven figures, says Rüdiger Pallentin, Managing Director of Lloyd Werft, Bremerhaven. Equipment suppliers such as MWB, Alfa Lavalle, Mahle and RWO present their latest solutions for this purpose at SMM. DENMARK AT SMM SMM has always been an important showroom for advanced Danish suppliers to the shipping industry. The year is no exception with a total of 90 exhibitors from Denmark. This is quiet an improvement compared to last year’s 77 participants.

And Mark Lerche, Business Sector Manager, Danish Marine Group, underlines that also the new event at DMM, the MS&D 2012 international conference on maritime security &

Defence, has Danish participation as qualified security firms have emerged to deal with the serious threat that piracy impose on international shipping. Among the speakers are Risk Intelligence and deputy director of Danish Shipowner’s Association, Jan Fritz Hansen, chairing the EU shipsowner’s comity on piracy.

The conference of green shipping, global maritime environmental congress (gmec), on 3 and 4 September will have as Jenny Braat, Maritime Denmark, managing director of industrial association Danish Maritime as speaker, and the Danish initiative Green Ship of The Future will be present.

Reduction of the greenhouse gas CO2 is one of the key goals which the global maritime industry has set itself. That is reflected in the programme of gmec. The first session of the second conference day will address “CO2 and Greenhouse Gas Emissions”, chaired by Torsten Schramm, CEO of the classification society Germanischer Lloyd; it starts with an inventory of the current situation and covers the international regulations and market requirements, including the possibilities of trade in CO2 emission rights and the vision of zero emissions.

Director of Hamburg Messe und Congres, Bernd Aufderheide: Green shipping is an important issue at SMM 2012.

By Finn Bruun

www.maritime-network.dk

Service and Repair at the Gate to the Baltic

The Port of Frederikshavn has a long history of shipbuilding and maritime service; from dockyards that undertake the repair and maintenance of engines and propellers to electrical, hydraulic and metalwork workshops and maritime training and education centres.

FREDERIKSHAVN Phone +45 98 45 80 14

Daily news on www.maritimedanmark.dk

•

Phone +45 96 20 47 18

E-mail: info@maritime-network.dk

Efficient green approach to the future

19

The Vestergaard Group

The Vestergaard Group covers all aspects of service, project handling, marine engineering projects, spare parts, repair and maintenance within the shipping and maritime and offshore industries.

The Vestergaard Group has facilities in Denmark, Norway, Sweden, Brazil and Turkey.

The Vestergaard Group consists of: • • • • • • •

Vestergaard Marine Service DT-Interlink VMS Turbo VMS Technology VMS Denge Technology VMS SafePort VMS do Brazil

The Vestergaard Group – the world’s best alternative – worldwide Combined, the six companies within the Vestergaard Group form one single strong unit, offering customers in the maritime industry world-wide an extensive, 24/7-service within the following specialities: marine engines, gears and propellers, turbochargers, marine engineer projects, project handling, consultancy on-site and a wide range of spare parts.

Vestergaard Marine Service Service, expertise and quality – always on time – are keywords for the Vestergaard Group, situated in Denmark and Norway and with workshop facilities in Frederikshavn (Denmark), Mongstad (Norway), Landskrona (Sweden) and Rio de Janeiro (Brazil).

80 service engineers are ready to meet our customers’ requests day and night, no matter where assistance is required. Several of our service engineers hold visa to countries like Brazil, the USA and China. The various visas are updated regularly, and the Vestergaard Group has appointed an internal employee to deal with everything concerning visa applications, contact to embassies, etc., ensuring that everything is ready, whenever an urgent job arises in areas requiring a special entry permit.

Operating within the maritime and offshore sector, the Vestergaard Group is subject to a number of international laws and regulations, which ensure high quality of the work carried out on board, and also provide safety regulations for the crew and employees.

The Vestergaard Group strives to respect and meet the international set of rules, and all our employees are certified according to the prevailing rules. The safety of our customers and employees is of utmost importance to us. The approvals and certificates obtained guarantee that our employees only provide high-quality work for all our customers.

The Vestergaard Group has received the following approvals and certificates: • • • • •

HUET (offshore) Basic Offshore Magnetic particle examination Special welding certificate Rina Workshop Approval

The Vestergaard Group has the following agencies/ partners: • Erma First Ballast Water Treatment Complete units for treatment of ballast water • Westmark BV Equipment for piracy protection of ships • Baudouin Moteurs Marine engines and generator units • Masson Marine SA Marine gear from 250 to 5000 hp • Citadel Solutions Total solutions within piracy protection of ships

VMS in Sweden In spring 2012, Vestergaard Marine Service established service facilities at the repair dock Øresund Drydocks in Landskrona in Sweden, offering complete service on engines, gears and other mechanical equipment on ships docking in Landskrona or the area nearby.

The manager of this facility, Peter Weesgaard, has been employed by Vestergaard Marine Service for several years. He has profound experience with all kinds of repair work and maintenance of mechanical equipment on ships.

DT-Interlink DT-Interlink, based in Frederikshavn, is a sister company with many years’ experience in import and export of spare parts especially for high-speed engines and fittings for diesel engines. We have our own import of e.g. original Caterpillar spare parts from the USA.

DT-Interlink is a flexible organisation. The dedicated and experienced employees work hard to find a solution for any repair job, and co-operation with a large network of suppliers provides the customers optimum expertise within every field of spare parts for engines.

In addition, DT-Interlink has solid experience with reconditioning of different engine parts and consequently, a wide range of spare parts for different engines is always available to our customers.

VMS Turbo VMS Turbo is a sister company, highly specialised in repair and maintenance of turbochargers for ship engines.

VMS Turbo has broad knowledge of different brands, and a specialised workshop with e.g. equipment for balancing turbo parts.

VMS Turbo works closely together with the service engineers from Vestergaard Marine Service, ensuring that the customers benefit from the synergy in connection with service and overhauls.

VMS SafePort VMS SafePort is the result of a Danish-Norwegian merger between the Danish Vestergaard Marine Service and the Norwegian SafePort.

In addition to the core competencies, offered by Vestergaard Marine Service, VMS SafePort primarily offers mechanical work like repair of cracks, piping, sea fastening and various types of preassembling and construction work. The company has also carried out a number of jobs entailing electrical engineering, isolation, ventilation, diving and repair of coolers.

VMS Denge Technology VMS Technology VMS Technology and VMS Denge Technology are

sister companies, specialised in naval architecture and engineering projects and project management within shipbuilding – from design to delivery.

VMS Technology is based in Frederikshavn, Denmark and Bergen on the West Coast of Norway. VMS Denge Technology is based in Tuzla, Turkey.

VMS do Brasil VMS do Brasil is a sister company

based in Rio de Janeiro in Brasil. Two service engineers are permanently stationed in Brasil, and furthermore, a dozen service engineers hold visa for Brasil.

Our workshop facilities in Brasil enable us to carry out cylinder head overhauls and honing of cylinder liners. We also hold the necessary equipment for maintenance of all Caterpillar engines.

Keywords for the Vestergaard Group -

The world’s best alternative Independence Close co-operation between group companies Flexible workforce Represented worldwide Employees with broad skills Response within an hour On call 24 hours a day - 365 days a year All necessary visas and certificates On-going training of employees Extensive experience with on-site machining 3000 m2 workshop in Frederikshavn Equipment for welding and reconditioning of propellers Large gear workshop Thermal spraying and reconditioning of shafts Rina approved workshop

Vestergaard Group Havnepladsen 12, bygning 14 • DK- 9900 Frederikshavn, Denmark • Phone:+ 45 96 22 11 00 • Fax: + 45 98 42 47 67 Mobile: + 45 20 42 47 27 ( 24 hours ) • E-mail: vms@vms.dk - www.vms.dk • VAT No: DK 27 21 56 29

Port of Frederikshavn Service Towards New Horizons

For more details visit: www.maritime-network.dk and www.fhhavn.dk