Danish Maritime Magazine 04-2011

DANISH

ERHVERVSMAGASINERNE

M ARITIME MAGAZINE 4 - 2011

Transport minister in Schleswig-Holstein:

Making ready for a strong growth in transport The air is getting cleaner despite increased transport Proposals on environmental labeling of ships DFDS strengthens its position in the Baltics

Photo: Torm

DANISH

ERHVERVSMAGASINERNE

M ARITIME

4-2011

MAGAZINE 4 - 2011

Transport minister in Schleswig-Holstein:

Making ready for a strong growth in transport The air is getting cleaner despite increased transport Proposals on environmental labeling of ships DFDS strengthens its position in the Baltics

TORM Garonne on her way from Talinn to Rotterdam, sailing under the Great Belt bridge

4 Transport minister in Schleswig-Holstein: Making ready for a strong growth in transport 5 New Managing Director for Danish Maritime 6 New Danish-German transportation commission: Danish minister: Growth across the borders 8 Paradigm shift: Ships and trucks in stronger cooperation 10 Coping with finance and sulfur: German Shipowners are more optimistic 12 North Germany is important: DFDS strengthens its position in the Baltics 14 Organic shipping: Proposals on environmental labeling of ships 16 The air is getting cleaner despite increased transport 18 IMO adopts mandatory global climate regulation for shipping 20 Neuer Hafen Kiel: Heavy duty and wind turbines

ISSN: 1903-5888 Editor René Wittendorff rw@erhvervsmagasinerne.dk Ads René Wittendorff Phone.: (+45) 7020 4155 rw@erhvervsmagasinerne.dk Publisher ErhvervsMagasinerne ApS Jægergaardsgade 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: 28th of October 2011 Copyright

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Transport minister in Schleswig-Holstein:

Making ready for a strong growth in transport In Germany road transportation is still number one, and as a transit country with strongly increasing traffic in sight Schleswig-Holstein need innovative transport concepts – modular concept trucks for instance. Shipping is expected to increase, and minister of transport, Jost de Jager, Kiel warns not to press more cargo from sea to land through excessive sulfur-regulation.

Jost de Jager sees quite a potential for the transport corridors in the North Sea and the Baltic Sea. Germany and Europe are and will continue to be dependent on the import of raw materials.

- More than 90 percent of goods exchanged internationally are transported by ship. Along with a global increase in the world-economic division of labor goes an increase in shipping traffic. For the Baltic Sea this means that the regular shipping traffic to the growing Baltic States and to Russia, as well as the trade with Scandinavia offer an enormous trade potential.

Traffic in the North Sea is being dominated by container traffic from Asia, of which a high percentage continues to travel on to the Baltic States or to Scandinavia by feeder vessel.

5.000 trucks cross the border The Schleswig-Holsteiner transport minister wants cooperation between the different modes of transport: - Cooperation between the various traffic carriers plays a leading role in the transport chain all the way from shipper to recipient. It is vital to distinctively define interfaces among the traffic carriers and to standardize proceedings, he says and adds: - Highways continue to be the number one mode of transportation. This is shown by the fact, that nearly 5.000 trucks are crossing the German-Danish border on a daily basis. Additionally the great seaports are important logistical transport hubs. Of course, there is competition between the different forms of traffic carriers and even among single traffic carrier groups. Ultimately all forms of traffic carriers will be needed to manage the increase in traffic volume.

Jost de Jager points out that the northern German ports in North Germany have not yet returned to their former output, but still need to be built out.

- For the northern German ports – as can be said for all ports – the crisis in 2009/10 resulted in a noticeable reduction of shipments. The levels they reached before the crisis have not yet been achieved, there still are free capacities. Nevertheless, the NorthGerman ports will have to expand accordingly to the increase in

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Making ready for a strong growth in transport

shipment volume. The necessity to expand also is a result of the large-scale off-shore wind parks in the North and Baltic Sea. At the same time, the capacities of seaport-to back-country-traffic have to be expanded. Also, the port approach-routes from sea require adjustment, he states.

Innovation in transport The expected increase in freight traffic calls for innovation, the transport minister underlines: - The estimated German increase rate for freight traffic for 2025 is ranged at 71%. For highway traffic, the estimate shows an even higher increase of 84%. Being a transit state, Schleswig-Holstein has to prepare itself to those flows of traffic starting immediately.

Due to financial and economic reasons, further development of our infrastructure is limited, he says.

- Therefore, we need to make the best possible use of infrastructure already available, in order to reduce the necessity of expanding our infrastructure. That is why Schleswig-Holstein participates in innovative traffic concepts, i.e. longer and heavier trucks (25,25 meter trucks, in German: Lang-LKW). Regarding freight traffic by ship, continuous increases until 2025 are expected for German ports. Regarding passenger traffic increasing numbers are expected for ferry and cruise traffic.

Shipping must contribute At the same time the environment is important for Jost de Jager: - Economic and traffic expansion need to be fashioned to be compatible with our climate and our environment, in order to affect quality of life as little as possible. Therefore, traffic has to be as efficient and energy-saving as possible. In order to reach this goal, shipping traffic has to contribute as well, the minister underlines.

- For the Baltic and North Sea emission control areas with tightened emission regulations have been established. Beginning in 2015, the permitted content of sulphur in diesel fuels will be lowered remarkably once again. However, we have to keep in mind not to force traffic from the seas back onto the highways by implementing excessive or sudden regulations, Jost de Jager warns.

- This would not help in preserving our environment at all, as ships are without a doubt the most energy-efficient mode of transportation, he says.

By Finn Bruun

Daily news on www.danishmaritimemagazine.dk

New Managing Director for Danish Maritime Deputy director Jenny N. Braat is replacing managing director Thorkil H. Christensen who has chosen to retire after 36 years with Danish Maritime.

Mrs. Jenny N. Braat has worked for Danish Maritime since 1989 and has broad experience within the maritime industry, and is also a member of the Advisory Board for Danish Maritime Magazine.

She is known in the industry for spearheading many initiatives for the association, she has been stationed in Brussels for a number of years as manager of the association’s office there, and she is highly regarded internationally as an expert on the maritime market – one of the strengths of Danish Maritime. “Mrs. Braat’s solid maritime experience both nationally and internationally, along with her political fl air guarantees that Danish Maritime undiminished will continue its effort to advance the competitiveness of the Danish maritime industry,” says Thomas S. Knudsen, chairman of Danish Maritime.

Mr. Thorkil H. Christensen started his career with Danish Maritime, then known as The Association of Danish Shipbuilders,

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on 1 December 1974. Back then, he had only just finished his degree in economics. The association was to provide him with a long and exciting career. In 1990 he was appointed managing director, hence he has been in charge of Danish Maritime for more than 20 years. ”With his long experience in Danish Maritime Mr. Thorkil H. Christensen has built up invaluable knowledge in the maritime field. His comprehensive insight into the trade, his broad network along with his diplomatic and pleasant disposition has been a great strength for Danish Maritime through the years. Therefore, it is somewhat sad to say goodbye to Thorkil, even though both the association and I feel that he rightfully deserves a full retirement with ample opportunity to explore his pastime interests”, says Thomas S. Knudsen. He continues: “We are pleased that Danish Maritime will, also in the future, be captained by a highly competent director in the form of Mrs. Jenny N. Braat.”

Danish Maritime marks the change with a reception on 23 August 2011, 1-3 p.m., at the address Amaliegade 33, Copenhagen, where both Mr. Thorkil H. Christensen and Mrs. Jenny N. Braat will be present.

New Managing Director for Danish Maritime

5

New Danish-German transportation commission:

Danish minister: Growth across the borders The Danish-German cooperation in transport plays an important role for Hans Christian Schmidt, who this summer along with Schleswig-Holstein’s Minister of Transport, Jost de Jager, has started up the work in a new joint transportation commission. Among the many themes is the use of environmentally friendly modular concept trucks

6

Hans Christian Schmidt, Danish Minister of Transport: Cooperation between Germany and Denmark in transport matters has had a fine start.

Flensburg would like to be involved in the cooperation, the Mayor Simon Faber likes the idea. Later we will talk about A11 highway project and Heide, where the Germans have a lot of work going on getting around of Hamburg, he says, noting that the project is moving strongly forward.

The Danish Minister of Transport has since he took office had such an agreement as one of his top priorities.

- It has taken time to reach the agreement, and at one stage it looked as though it would not succeed, so I’m glad that we reached agreement, he says, and mentions its importance for growth and climate on both sides of border.

- This transport has two pillars: In land across the border and to sea (Fehmarn /Gedser-Rostock) – well four pillars, if we include the two channels to Sweden and Norway, he says, and stresses that it is important that all transport corridors between Denmark and Germany are developed.

Ports are important The Commission has the task of identifying and analyzing the challenges of cross-border transportation and infrastructure. The Commission will submit its recommendations on cross-border transport.

- There’s no doubt in my mind that we need this cooperation.

In South Jutland and Southern Jutland we need – at the same time - to think at ports (airports and common ports) in connection with the railroad (freight and passengers), buses and public transport and roads and highways.

It is crucial that we can come up with an overall recommendation of the Joint Commission. - We can’t decide what must be done, but as a commission we can make a recommendation, he says, comparing the task of the Danish infrastructure commission, which analyzed the country’s entire transport options.

Hans Christian Schmidt points out that the discussions between Denmark and northern Germany are essential.

- The leaders in Kiel headed by Ministerpresident Peter Harry Carstensen, whom I met recently and Minister of Transport, Jost de Jager, who participated in the meeting in Tønder, South Jutland, where the commission started its work in July are a big part of it all.

- But it was also important that it was an agreement between two countries, Denmark and Germany, and that it thus was an agreement between Peter Ramsauer, the German transport minister and me, he said, adding: In Germany, some of the tasks are performed by local government, Landesregierung, and others by the federal government. Therefore, the agreement is also linked to Berlin.

- I am just preparing the agenda for the next meeting in September, which will take place in Flensburg. Here we will discuss aviation, a very important issue down here.

Environment Hans Christian Schmidt points out, that environmental issues are largely regulated by the EU. - But one of the themes that really means a lot to us, and fortunately Schleswig-Holstein agrees, is the modular concept trucks (trucks in combined modules at 25,25 meters) - And here’s the rest of Germany is also on track to join. The German Transport Minister Peter Ramsauer recently told me that a traché throughout Germany allowing modular concept trucks can be expected.

- Modular concept trucks are one of the most environmentally friendly solutions. If you like the environment you have to concentrate on these modular concept truck trains - they limit the emission of CO2 when huge amount of goods are transported, he states.

- Moreover, my priority is to ensure that we get more goods on rail. I think that we at some point come up with

Danish minister: Growth across the borders

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,ǀŝĚĞ ^ĂŶĚĞ ^ŬŝďƐƐŵĞĚŝĞ ͬ^ a recommendation in the Commission that we must finish the job between the Jutland stations Tinglev and Padborg - if you really want freight back on trains, he says, and mentions that he wants to help electrify the line.

Today we have 7 direct train departures between Flensburg and Copenhagen, where before there was only one, says the Danish Minister of Transport, who also emphasizes that development in ports is important.

The Commission The Danish German Transport Commission started up its work on the 5th of July this year.

The objective is to identify and analyze challenges and make recommendations Since special commissions and task forces are already set up for the Fehmarn Belt fixed link, the Danish-German Transport Commission will focus on the Jutland-corridor. Its subjects area all transport issues, cross-border in nature or affecting transport and traffic in the neighbouring country, i.e. infrastructure plus all transport modes (road, rail, waterways, harbours, aviation). The commission will give recommendations.

Af Finn Bruun

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Danish minister: Growth across the borders

7

Paradigm shift:

Ships and trucks in stronger cooperation An effective interaction between the modes of transport – ship and truck could give Denmark a new powerful platform for cross-border transport says head of DI Transport, Michael Svane, who believes that a paradigm shift is underway in transportation: Slower steaming transport to meet environmental and climate goals – but always precisely in time.

At the moment growth in Denmark has not really taken off. We still don’t spell the word economy in capital letters, but that will change over time, and we can observe that things go quite well in neighboring countries such as Germany and Sweden, director of DI Transport Michael Svane says.

He emphasizes that the projections clearly tells that the crossborder transport will grow steadily in coming years.

- And this – especially in view of the political agenda called

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Ships and trucks in stronger cooperation

sustainable transport – calls for efficiency and environmental and climate considerations. Perhaps with even greater emphasis than today, he says.

- But it also provides the opportunity to get a much better interaction between modes of transport. And this is supported by the international trans-boundary movement itself, he says.

- There is no doubt that Denmark in the long term will evolve into a transit country.

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Many expect that truck traffic and short sea shipping stand sharp against each other in the competition - not least in the Baltic area - partly because the coming tough sulfur standards for ships will put a serious economic pressure on short sea shipping while at the same time truck traffic is being challenged by congestion and - in Germany - Maut-payment.

But Michael Svane does not see this as a major problem: - I don’t think that competition between trucks and ships will evolve negatively. On the contrary, I expect - and this is what we hear from transport buyers as well - that we will see a stronger focus on the environmental side, he says and explains: - I sense that there is a shift in the market. We have always been talking about just-in-time. But looking at the maritime focus these days on slow-steaming, a new agenda is in sight. A paradigm shift: Today it is no longer necessarily to be the fastest but to be there on time. And I think it is a development which we will see elsewhere in the transport industry, he says, pointing out that now the focus on lower speed goes for trucks as well: Slow-trucking - In the truck transport people are beginning to set up speed limiters in trucks to a certain speed, that provides a fair saving in fuel, he said.

- I think we will see more of this while we are experiencing a product development where the new module train trucks can play an increasing role – the same way planes and ships get bigger.

- But all this can only be done effectively if you can cooperate even better between the various modes of transport, Michael Svane says.

Therefore, the sustainability agenda together with the fact that Denmark is increasingly becoming a transit country, suggests that we use the strong competences we have in Denmark for instance in form of leading logistics companies, which operate across different transport modes, Michael Svane says and names DSV as an example, DSV, which originally started as a road operator but today is a major player in shipping and air freight as well.

Danish Platform He considers Danish shipping a great strongpoint.

- Our competence platform in Denmark relates greatly to our important shipping world, where it is a perfectly natural thing to work across transport modes.

- So we have a platform in Denmark which makes it possible for us to be among the leaders in the multimodal transport as such, he says.

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Transportation Demand Previously, shipping and truck transport people spent much effort to convince the world that they alone were the most environmentally friendly or efficient, but today where the agenda much more is about transport chains, than who is actually carrying the goods, it is the total solution that counts.

That is essential if the industry is going to match the expected increase in demand for transport when the economic wheels really come up to speed again.

DI, in its transportation vision that goes right up to 2050, clearly focuses on the interaction between modes, as a condition for growth together with improved traffic connections: It is vital that Denmark has good access to international growth markets and that a strong infrastructure ensures that Denmark will have a central location in a north European growth region that includes the Øresund Region and northern Germany, DI states seeing good transport links as key to the North European growth region becoming part of a larger growth network.

This is especially important now that the growing markets in Asia, South America and South Africa are taking an increasing share of world production due to higher growth rates and more affluent consumers, the vision underlines.

By Finn Bruun

Ships and trucks in stronger cooperation

9

Optimism in German shipping and the effort to solve the challenge of sulfur emission limits.

Coping with finance and sulfur:

German Shipowners are more optimistic For German shipping the question of financing is an important issue. Even though the shipowners have managed relatively well during the crisis, the order books are very thin. But when confidence returns to the world they have a fine starting position. At the same time German shipowners fight to find solutions for coping with the coming emission limits in the North Sea and the Baltic Sea. Nevertheless optimism is there in both fields.

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German Shipowners are more optimistic

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The German shipowners are currently relatively optimistic.

As director and head of information Max Johns, Verband Deutscher Reeder, puts it: - The recent past give some reason for optimism. The severe crisis went relatively well and looking forward the prospects in near and midterm future are pointing in the right direction.

In German shipping the largest single issue has been the question of financing ships both on the banks side and the equity side.

- We are very confident that we have a good and stable system that is fit for the future and probably will remain the main source of ship financing. - But it is obvious that everything is more difficult today when it comes to ship financing - On the equity side the system has been based on private investors and their willingness to finance. Some of them have been burned og maybe become more realistic though experience – including bad experiences. So they have been more hesitant last year and this year making it particular more difficult to obtain new equity. But we are convinced that this will be better as soon as the confidence returns, he says.

Good start position - On the banking side we know that it has been difficult for them as well. They are not to blame. They have been helpful to us in the past and will probably be that again, when things get better, Max Johns states.

- The German shipowners have been extremely hesitant to order new ships. Other countries have done that a lot more – even in the middle of the crisis, but here in Germany we barely did so at all. You could say that it has been a healthy period of non-ordering. We had an outstanding order book for new ships, but it has decreased. This means that we will have good start position in a couple of years, he adds.

No studies - When it comes to environment we have been dealing with two issues – the IMO and the sulfur problem, he explains - We are very happy with the IMOs final solution for the EEDI index. We believe that such IMO-regulation on a global scale is fine – as long as it applies to everyone.

It would be harmful for European shipping if EU would find any unilateral solution for CO2 for European shipping. We strongly believe that this would harm us.

So we are struckling to find solutions regarding the sulfur issue that follows the IMO decision for some years ago involving the North Sea and the Baltic Sea. We found that nobody had done any investigation studies on what would be the practical terms of the limits. Therefore we – together with the ministry

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of transport – commissioned a study of this. The study shows that the limits will have a huge inpact. It will move a lot of cargo from sea to road, which is exactly what was supposed not to happen. The goal is to move cargo from road to sea, and now the emissions limits will trigger a lot of cargo going back to roads.

- So we are now discussing with the ministry of transport how this can be avoided.

– We don’t believe that the Marpol regulations can be - or should be - changed in any way. Therefore we look for practical means to lower the negative effect of the impact.

My impression is that we can find solutions for new built ships. There are a lot of new technical installations that can be used, he states.

Hope for exception - But we have a number of ships that cannot technically be retrofitted. It is mainly ro-ro ships transporting trucks - we really have lots of them in the Baltic. That is problematic.

- Both for those ships which can’t be fitted and those which would become so enormously expensive that a truck transport would be chosen – a trip from Kiel to Saint Petersburg is a long stretch and It would be environmentally costly – ships would be a much more intelligent solution.

We are negotiating how to find a softer way to solutions for old ships and look at every single one to see which can be retrofitted and which can’t: Only those which can’t might have an exception.

It is heavy political work, but we have become more optimistic. It seemed almost impossible half a year ago. But it appears that our lobbing has turned the ministry around. Now they see that this emission limit can’t be implemented just as it is. They too are trying to find exceptions. How large or small we don’t know. There we will have to see, but we are negotiating to identify the ships that need an exception.

German growth Germany has a fine economic growth compared to many other countries.

- The German growth rate might help us here and there, but we are so strong in international container trade – most of our ships are containership and depend on the world trade – that the figures for a any single country matters little – besides only few of our ships are depending only on the German trade.

We need growth rates on a much larger scale, Max Johns says.

By Finn Bruun

German Shipowners are more optimistic

11

North Germany is important:

DFDS strengthens its position in the Baltics Germany plays an increasingly important role for DFDS both in terms of logistics and shipping routes. And DFDS is major consumer of German shipyards. Growth strongest in the Baltic Sea. DFDS has activities in many fields in Germany. Besides logistics activities, DFDS has several major shipping lanes from German ports. One of them is Cuxhaven- Immingham.

- It’s a great route, including transport of new cars from German car industry to the UK market. This is especially goes for BMW, where our ships carry the production that goes to the UK market. The cars are distributed from our terminal in Immingham, DFDS’ Information Manager Gert Jakobsen, who also counts Opel cars and Kia cars as well as normal transport of trailers.

- We have a reasonably large set-up in Cuxhaven, although it is not our own terminal, he says.

Also passengers to and from Germany plays a clear role for the company.

- A core activity in the German commitment is service from Kiel to Klaipeda with daily departures. It is a major freight route which also carries passengers aboard the combined ro-pax cargo and passenger ships.

- Here we see a very strong market for our passenger service.

In the freight market, we have a pretty strong set up from Kiel to Klaipeda and back, as we serve a very large hinterland with this route, he says.

Kiel is fine - Kiel is a good harbor with a fine location - even compared to the busy north German roads, and equally important: the heavily trafficked roads in Poland.

- When Polen and Russia had a conflict of driving licenses, where Poles had not been quite willing to give the Russians the necessary driving permits through Poland, we suddenly had a lot more goods to sail, because the Russians had to use sea, as they did not have permission to pass through Poland.

And it is actually also the reason why we this spring started up between Kiel and Ust Lluga, which is the port that is located best for St. Petersburg, at the south coast of the Gulf of Finland in Russia west of St. Petersburg.

Here we sail with “Kaunas” Kiel, Sassnitz, Ust Lluga.

Sassnitz has an important railway-system, which will also be able to take wagons, when licenses

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DFDS strengthens its position in the Baltics

are in place. It is a very exciting development, Gert Jakobsen stresses.

- And then of course we have Kiel-Karlshamn-Saint Petersburg, as well as Sassnitz-Mukran- being also an old railway route to Klaipeda. But Mukran is special, because here you have a system that can switch between Russian and European railway gauges.

German yards - But it is not only shipping lanes that are interesting to us in relation to our neighbour to the south.

- We are also close to being one of the major consumers of German shipyards. We have our six good ships with flower names such as. “Begonia”, built in Flensburg. Fine ships from 2004, 05 and 06, three of which now have been extended at a shipyard in Bremen, and currently we are building two ships in Stralsund. They will be included in Ark fleet, and thus used for everyday in the DFDS fleet as well as for military transport, whenever required - typically in connection with exercises: transport of equipment, vehicles, hospital equipment, etc. It is based on a contract with both the Danish and the German military to provide up to five ships.

The two new ships will be custom-built with special equipment like side gate, special lifting gear and extra large fuel tanks. They have just been laid down on.

The quality of the German yards is good, and besides they are quite close. It’s easier than having to follow up the building procedure in the East. However, we have also been building ships in China, including four new ships that we have on the charter, he says.

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Economy Gert Jakobsen point out that there has not yet been any dramatic economic upswing in Denmark. It goes up and down.

- But we have seen growth in the Baltic as well as the North Sea, where the trend is that growth has been strongest in the Baltic Sea. But on the other hand, it was there the crisis started and where we had to be quick to adapt our operations.

- In Karlshamn-Klaipeda we sail with three ships, and we run a great route from Copenhagen to Fredericia Klaipeda, and finally there is our route between Ystad and Swineousche, which is served by Polferry. So Baltics is a big market for us.

- It is a very competitive market, where we also have significant challenges with sulfur directive in 2015, where we actually have to shift from crude oil to marine diesel, which costs up to 100 percent more.

- In this field we work with different tools. We hope to gain time.

2015 is simply too early for us to be ready with solutions. We can therefore expect a push in traffic from sea to land, and it will be to no benefit for infrastructure or environment that the road system will be further burdened.

- But we take many initiatives to solve the problem including an investment in the installation of a so-called sulfur scrubbers developed by Aalborg Industries. We test them on our ships.

The results are good and a scrubber can solve part of the problem, but it does not fit all ships, so we are still looking for other opportunities.

Liquefied natural gas has been presented as an option. But it is a difficult process. Not all ships can use it, and the use requires establishing of a distribution network.

We are therefore facing great challenges in an important market for us, where we also play an important role as a shipping company. And here Kiel is a real good port for us.

The right time - One of our many environmental initiatives is a special computer program Seaplanner, installed on all our ships, which via input about depth, currents, wind, wave height, etc. can define an optimal route and speed to a minimum of fuel consumption. Furthermore we have introduced measures to reduce the harbor lie time, so the ships stay longer time at sea and thus move with lower speed and oil consumption.

- We can’t just arrive when we want. There are people who are waiting to load. That’s how it works in our type of transportation. And we can’t sail until the cargo has arrived.

- Therefore, we have very clear agreements about when to sail and arrive so that we, within the framework, may change the schedule in favor of longer time at sea. The interesting thing for customers is not when the ship leaves. For the truck owner is the key when he must deliver his load, and when he can get it.

- So if you minimize the time spent in port for example through far better procedures at the port, better communication between ships and land forces and better land-systems, you may reduce from eight hours to perhaps six hours and thus save two hours on one voyage alone.

Can you further reduce in the second port, so you can get more time at sea - and the speed is of course crucial for oil consumption, Gert Jakobsen states.

By Finn Bruun

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DFDS strengthens its position in the Baltics

13

Organic shipping:

Proposals on environmental labeling of ships In a new release, the booklet, “Cleaner Shipping”, the Danish Ecocouncil (Det Økologiske Råd) focuses on various emissions from ships to the atmosphere, and what can be done. It is a subject that has long been strongly in focus by the Danish shipping industry.

The council’s booklet “Cleaner Shipping - Water transport” does not come with new revolutionary research figures, but gives an updated version of the current challenges facing the shipping industry - and which Denmark is among the best in the world to handle.

So even though the reception in the media mostly focused on a stated lifeyear-shortening effect in the country as a result of ships’ - the fewest of them Danish - emissions near the Danish coasts, it is nevertheless a rather sober paper, aiming for solutions.

The report states that the necessary steps to limit emissions - both CO2, NOx, and SOx - are best taken through an international body like the UN International Maritime Organization IMO, so the rules are global - and therefore apply to all ships.

The suggestion is, that Denmark - who already plays a very active role on the environmental issues - must intensify its pressure in the IMO for environmental regulation in relation to CO2 from shipping.

As one of its direct proposals The Ecocouncil wants to introduce a voluntary eco-label - a bit like known from the refrigerator - as a market-based regulation. Thus shall it be transparent, how much pollution a given cargo creates.

It can be done via an eco-labeling of ships from AE, the Council points out: - The labeling should be based on air pollution reductions compared to a baseline pollution e.g. determined on basis of how much a similar “average” ship pollute in 2012.

To achieve a D-labelling a ship would have to reduce its emission of CO2 by minimum 30 percent, SO2 and NOX emissions by min. 80 percent and particle emission by min. 50 percent.

B-label would require a combination of biofuel/biogas with a very low content of sulphur combined with several technical solutions. This is on the edge of what is possible today. Alabelling would require new technology.

Danish standards The Ecocouncil’s leaflet acknowledges Denmark’s high state of technology in this field: Denmark has a unique position in relation to shipping and technical solutions to reduce air pollution from shipping, because Denmark is hosting the largest container shipping company in the world, the largest supplier of ship engines and several leading clean-tech companies within flue gas cleaning.

In this connection, Denmark has developed several strong

New technology and new ideas are essential to reduce emission.

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Proposals on environmental labeling of ships

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research and consulting communities in relation to mapping and reduction of air pollution from shipping.

- At the global level, Denmark is known as a leader in both the maritime and clean-tech, the report says stating that this could enable Denmark to exploit competitive advantages of further environmental regulation of shipping.

These benefits could be reaped by: Collecting and wherever possible coordinating interests in relation to greener shipping among the actors in the Danish maritime sector i.e. shipping companies, consultants, research institutions, technology providers, ports, governments and environmental organizations.

This also calls for a much more intense global marketing of Denmark as green maritime nation - both in relation to Danish companies and in relation to related clean-tech companies in consulting, research and environmental technology.

Sinner Today the shipping industry carries about 90 percent of global transportation of goods and is thus fundamental to the entire international trade.

But transportation effort as great as this natural means that the contribution to global pollution must be considerable as well.

The report will not appoint, however, shipping as the sinner in comparison to other modes: Compared with shipping emits goods transport by train 2-5 times more CO2 per year per ton of transported goods, while goods transport by truck emits 5-15 times more CO2. Compared to global warming is shipping so a relatively favorable mode, is the conclusion which, however, warn that shipping simultaneously emit several hundred times more SO2 and particulates than modern trucks per. ton of transported goods, and 10 times more NOx, the report says.

Lost Life years On the tougher side he Ecocouncil accuses shipping for causing an air pollution each year in Denmark leading to about 4,000 years of lost living.

The waters around Denmark are passed by 100,000 ships.

And when the big container ships operate only 8-12 meters per liter of bunker oil, it means that huge amounts of bunker oil is burned in Danish waters creating high air pollution more than the pollution from all the Danish land-based sources. The council considers health effects to be at the economic costs of approx. 3 billion Danish kroner annually in Denmark.

The good guys The Danish Shipowners’ Association, which for years has focused on an increasingly strong climate and environmental commitment - also as a competitive parameter, notes that the Ecocouncil points out that environmental regulations must be implemented at international level in the IMO Nations and the idea of eco-labeling is called interesting.

The IMO has as a matter of fact recently adopted a Danish-inspired proposal for a design index for new ships, which calls for more environment for new ships.

On the other hand, the Deputy Director of the Danish Shipowners’ Association, Jan Fritz Hansen, points out that the report with its striking statements about the harmful effects of air in Denmark, is to be shooting at the wrong: - We totally agree on the need for international solutions to the maritime environment and climate impact, and that there is still much to do, although we are on the move. The labeling can be a refreshing idea and we are not opposed, although we probably would prefer to see this kind of actions undertaken by the IMO, he says.

- But when it comes to the report’s lifetime calculations, we must say that they look a little odd. The use of results from environment studies is not fair enough in our opinion. And the air is has become cleaner, although we are not yet at journey’s end. It’s not black on black. Actually woodburning stoves are not better than the international shipping, and besides: Most ships that pass through our waters are not Danish, he says and continues: - So we are disappointed that a Danish report published in Denmark gives all the blame to Danish shipping, which is effectively the nice kid. At this point the analyses are exaggerated. It should never be a pretext to doing nothing that we have come so far as we are with the environment. We must continue. But it was probably more reasonable to focus on countries that oppose environmental regulation in the IMO, Jan Fritz Hansen says.

By Finn Bruun

Daily news on www.danishmaritimemagazine.dk

Proposals on environmental labeling of ships

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Danish ships are among the most modern in the world, at the shipping companies welcome high international standards for their performance.

Shipowners respond to air pollution-criticism

The air is getting cleaner despite increased transport

In a memo Danish Shipowners’ Association questions some key points in the Danish Ecocouncil’s new booklet “Clean Waterways”. Although the shipowners acknowledge some interesting suggestions including on eco-labeling of ships and the council’s call for increased international environmental efforts through the IMO, there is serious criticism of the council’s use of data from environmental studies. The figures are used selectively, the criticism says.

Danish Shipowners’ Association thus rejects the Det Økologiske Råds, Danish Ecocouncil’s alarming statement about ships’ air pollution and the consequent living years: “It is not true that air pollution from shipping in the waters around Denmark are or are likely to be significantly larger than from all land-based sources. On the contrary. In 2009, Danmarks Miljøundersøgelser (National Environmental Research Institute) prepared a study of ship emissions in Denmark. The years 2007 and 2020 were compared to elucidate the effect of the rules adopted by IMO in 2008. The Ecocouncil refers to this report and uses some of its results and charts

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The air is getting cleaner despite increased transport

- but in a rather selective manner. National Environmental stresses that the air in Denmark as a whole is expected to be significantly cleaner in 2020, and shipping’s part will overall be less. In conclusions of the report the following is said: “SOx: The concentration of SOx in Denmark is expected in 2020 to represent 6% of 1990 levels, equivalent to 1.5% of the EU limit. Because of the IMO rules, 11% will come from shipping in 2020, which is comparable to the fact that shipping in 2007 accounted for 33%.

NOx: The concentration of NOx is highest in Copenhagen. Between 2007 and 2020, the total concentration will decrease

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by 44%, but this decrease is mainly due to large reductions for land-based sources. Transportation requirements are expected to increase by 15% over the same period, and IMO rules will almost be able to counteract the corresponding NOx pollution from ships, so that shipping emissions in 2020 are only slightly larger than in 2007, although much more will be transported. Due to the large reductions expected on land, shipping’s share will increase, but the air will be much cleaner.

PM2,5: The concentration of fine particles PM2, 5 are also expected to be reduced in the period. In Copenhagen, the shipping industry’s share in 2020 will be 7%. “ Labeling However the Danish Shipowners ‘Association has a much more positive approach to the Ecocouncil’s proposal for a voluntary labeling system for ships’ cargoes. The Shipowners’ Association has itself touched on a similar mindset.

“It is in many ways a fine idea. Danish Shipowners’ Association has helped to bring forth a similar idea which here in July resulted in the International Maritime Organization, IMO adopted binding global rules that will make new ships by 30% between 2025 and force existing carriers to keep records of fuel saving measures on board. Shipping is thus the only sector covered by binding global climate rules and

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regulations, rules that even gives a corresponding reduction in shipping’s emissions of particles, NOx and SOx “ The report shows that the shipowners believe that a globally binding regime would be more effective than the system the Ecocouncil is proposing. A voluntary labeling, which supplements the mandatory rules, will be a good tool for those companies which will directly market a green profile.

In perspective The Ecocouncil emphasizes that the loss of life years in Denmark as a result of international shipping is 4,000. The shipowners association will not downplay the number but want it to be in perspective, and adds: “Danish ships are among the most modern and environmentally friendly, but unfortunately very few of them are sailing in Danish waters, which is in turn crossed by ships from all other nations. International rules is therefore the only solution - as pointed out be the Ecocouncil as well “.

It is, however, remarkable, that the effect of the impact from shipping’s emissions is at the same level as the popular woodburning stoves in the Danish households.

By Finn Bruun

The air is getting cleaner despite increased transport

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IMO adopts mandatory global climate regulation for shipping The International Maritime Organization (IMO) has adopted an ambitious package of technical and operational measures to reduce CO2 emissions from ships. This happened when the Marine Environment Protection Committee (MEPC) met from 11 to 15 July. More precisely the regulatory package consists of an Energy Efficiency Design Index (EEDI), which will require that ships build in 2013 and onwards are designed more efficiently and a Ship Energy Efficiency Management Plan (SEEMP), which will stimulate more efficient operation of all ships.

“The Danish Shipowners’ Association welcomes the adoption of the first ever mandatory global GHG regulation for shipping. Not only does it make shipping the first sector to be covered by a global GHG reduction regime it also proves that the IMO and the majority of its members are willing and able to make progress on the climate change issue. This is the first step and a supplementary market based measure is already in the pipeline”, says Maria Bruun Skipper, consultant, Danish Shipowners’ Association.

“The EEDI sets technical standards that will improve the energy efficiency for new ships compared to ships of the same type and size being build today”, explains Arne Christian Mikkelsen, naval architect, Danish Shipowners’ Association. The regulation comes into force in 2013, and in an initial period of two years ships shall be build more efficiently than the average of similar ships. The next five years an additional 10 % efficiency improvement is required, then 20 %, and in 2025 new ships shall be 30 % more efficient than the ships build today.

“This is a significant step forward in reducing CO2 emissions from ships, and a 10 % improvement every five years is certainly challenging but not unreasonable in view of the current technological development”, he adds.

regulation should be based on the principle of “common but differentiated responsibilities” – the fundamental principle of the UNFCCC which in practice means that they do not want any binding climate regulation which is applicable to ships registered in developing countries. The majority, however, supports the IMO principle of “no more favourable treatment of ships” as this is the only way to preserve a level playing field. Late Friday 15 July Saudi Arabia called for a vote, and the result was that 48 States were in favour of adoption, five against and 2 abstained.

“So even though the IMO deviated from its normal way of decision making i.e. consensus, a solid majority stands behind the decision”, says Maria Bruun Skipper. The European Commission has already announced that should the IMO or the UNFCCC not agree to a market based measure before the end of 2011, the Commission will table a proposal for a European regulation in 2012. “It is of utmost importance that any climate regulation is effective and possible to enforce, and that is why the global industry shipping - as well as the climate - is best served by global regulation. EU or any other regional regulation will simply neither be adequate nor enough”, finishes Arne Mikkelsen.

The new regulations were not adopted by consensus. The IMO rules of procedure gives each state one vote and decision can be taken by a majority, but this is a very rare situation. Under normal circumstances it possible to find a compromise, which the minority can accept, so that decisions can be taken by consensus. However, before the adoption of the regulations went a prolonged and sometimes fierce debate that reflected a political polarization between developed and developing countries. A group of developing countries, led by China, India, Brazil and Saudi Arabia, adhere to the belief that any GHG

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IMO adopts mandatory global climate regulation for shipping

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Project Manager for Technical Division New Building & Projects - Fleet & New Building Support The challenge TORM has recently adopted its new strategic foundation “Changing Trim” which rests on four cornerstones: Customers, Resilience, Leadership and Sophistication. We are looking to expand our global footprint to match the on-going development of our business, which includes an ambitious expansion plan for our Technical Division.

Thus, to strengthen the Technical Division within New Building and Fleet, we are looking for a Project Manager based in our office in Copenhagen.

The Project Manager for New Building & Projects and Fleet & New Building will play an important role in fulfilling the strategy goals in a team based organization with a high customer focus.

The position is new established and consequently contains great potential for development and influence.

Your main responsibilities will include: • Project handling and project management in general • Project implementation on vessels • Providing technical support regarding the fleet • Evolving technical solutions to comply with existing and upcoming legislation (e.g. “IMO Ballast Water Treatment Plants”)

• Upholding the contact to new building site teams • Keeping up to date with new technologies, trends etc.

The Project Manager reports to GM, New building & Projects, Fleet & New Building Support. The position involves travel activity of 30-40 days per year.

Your qualifications You have a Master Mariner or Marine Engineering certificate, alternative a Marine Engineering degree or relevant engineering education. Marine or naval experience is however required.

You have a proven record of minimum 2-3 years of substantive project management experience and a structured approach to documenting, planning and managing the development process.

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You will intuitively act in accordance with our values: Respect, professionalism and entrepreneurship.

We offer Based in Hellerup, Denmark you will be part of a leading product tanker operator in the world and a significant player in the dry bulk market. We aim to run bestin-class commercial operations around the clock and set the industry standard on technical quality.

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Application Further information regarding the position can be obtained from General Manager Flemming Vestergaard on tel.: + 45 39 17 81 36.

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Your application will be treated in confidence and our reply will be sent to the email address from which you sent your application.

TORM is one of the world’s leading carriers of refined oil products as well as a significant player in the dry bulk market. The Company runs a fleet of approximately 140 modern vessels in cooperation with other respected shipping companies sharing TORM’s commitment to safety, environmental responsibility and customer service.

TORM was founded in 1889 and has continuously adapted to and utilized the significant changes which have characterized the shipping industry. The company runs activities across the world, and the corporate head office is located in Copenhagen.

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TORM A/S • Tuborg Havnevej 18 • 2900 Hellerup +45 3917 9200 • www.torm.com

Magasinpost MMP ID-nr. 42870

Neuer Hafen Kiel:

Heavy duty and wind turbines Neuer Hafen Kiel has high hopes for the future. The economy goes well in Germany and there is a clear expectation that transport is increasing. The harbor is mainly focusing on heavy load, wind turbines and associated logistics.

Economic sea - When it comes to heavy goods and wind turbine parts such as turbine blades, the sea is both cheaper and more ecological, he says, mentioning that also the coming Fehmern project is interesting for Neuer Hafen Kiel.

- Probably not directly on the production side, but the number of tasks is so big and extensive, that we expect to be able to make a contribution. We are

Heavy Goods and wind turbines will play an important role for heavy freight harbor Neuer Hafen Kiel-Canal.

certainly ready, Peter Klarmann says.

The port is part of the network Hafenkooperation Offshore Hafen Nordsee Schleswig-Holstein, and is also involved in the wind turbine cooperation Windcomm and expects a boom in this activity.

The port is located in Osterrönfeld at Rendsburg directly to the Kiel Canal, which remains one of the busiest waterways in the world.

Peter Klarmann underlines the port’s proximity to waterways and especially the highway system and waterways - with quick connections to Scandinavia, and near the Hamburg area.

By Finn Bruun

ErhvervsMagasinerne ApS, Jægergaardsgade 152, Bygn. 03 I, 8000 Århus C.

Director Peter Klarmann, Neuer Hafen Kiel-Canal says: We believe that the outlook is really good, not least because we are so well located between the North and Baltic Sea. We are specializing in heavy load and the wind turbines with all what it takes, he says, and emphasizes that the Neuer Hafen Kiel has a large industrial and commercial area with storage options attached - This is offered to companies who need heavy transportation. The port has an unique capacity in cranes for lifting tasks, he says and adds: - Today, this port is the only dedicated heavy freight port in northern Germany.

However, Peter Klarmann does not rule out that small cruise ships and ferries might be an option. After all the location is in the heart of Schleswig-Holstein.