Danish Maritime Magazine 05-2011

ERHVERVSMAGASINERNE

DANISH

M ARITIME MAGAZINE 5 - 2011

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

Somali pirates are taking the world

hostage

ERHVERVSMAGASINERNE

DANISH

M ARITIME

5-2011

MAGAZINE 5 - 2011

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

Somali pirates are taking the world

hostage

The size of the area and the lack of opportunity for frequent port calls require that vessels receive supplies by sea. Here HDMS ESBERN SNARE gets fuel from the tanker HMS Patuxent

5 The Pirate season is approaching 6 The European Parliament: Stronger European commitment to combat piracy 8 Piracy: The long term solution must be found ashore 10 Employers and employees: Traditional opponents join forces 12 EU naval force We are not at war with the pirates 14 Clipper Group on piracy: Time for international action 16 Danish security company on piracy problem: Not solved within the next five to 10 years 18 Shipping – Denmark’s biggest export business 20 The significance and development of “The Blue Denmark” 22 No technological revolution for ships 24 Security rules ought to be revisited 26 Greece and Denmark agreed on cooperation on joint WEB-marketing of the European Short Sea Shipping 28 The Blue Conference 2011

ISSN: 1903-5888 Editor René Wittendorff rw@erhvervsmagasinerne.dk Ads Mads Melin Phone (+45) 2785 0041 mads@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 Image editing: Nini Wittendorff Next issue: 14th of December 2011 Copyright

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Port of Skagen - Future Growth PORT OF SKAGEN Port of Skagen is investing in a substantial expansion of their facilities in the next four years with the aim of strengthening existing industry and attracting new business.

This expansion will enable Port of Skagen to accommodate more and larger vessels (300+ m and drafts up to 11 m), i.e. bigger fishing vessels, oil tankers, general cargo vessels and cruise ships.

Major expansion from 2005 – 2015 Port of Skagen is at the half way point of a ten year project with the strategic aim of completing a major expansion of the harbour.

The following is planned for the coming period, 2011 – 2015: More than a doubling of the width of the entrance to the habour from 80 to 175 m, an increase of the water depth from 9 to 11 m, the completion of a new harbour basin, the building of a new 450+ m quay and new 1,5 km breakwater, in addition to possibly a new dry dock.

At present areas directly along berthing areas are fully ready and available for new businesses.

www.skagenhavn.dk Fishing and Fish Processing Port of Skagen is the largest fishing harbour in Denmark and the premier port in Europe for the landing of pelagic fish – primarily herring. Port of Skagen also houses the largest fish meal factory in Denmark with an annual production of approximately 125,000 tons of fish meal and fish oil exported to more than 60 countries.

Strategic Focus Areas

The planned expansion of the harbour will make it possible in the future to accommodate a larger number as well as bigger sized fishing vessels.

Cargo and Traffic Port of Skagen is an important transit center for products and goods from approximately 550 cargo vessels a year. Each year the port has about 100 bunker calls and handles over 294,000 tons of ship cargo.

The planned new harbour facilities will enable that much larger vessels, i.e. oil tankers and cruise ships, can be berthed and serviced in the future.

Maritime Service Industry Port of Skagen - in cooperation with Service Team Skagen Havn, including Karstensens Skibsværft A/S - offers a one-stop service concept at this very “top of Denmark” for fishing vessels, merchant vessels and yachts.

The planned expansion will enable vessels larger than 300 m to be docked and serviced. The expansion is also expected to lead to the establishing of a bunker terminal for fuel oil.

Cruise Ships and Tourism Port of Skagen is ideally situated geographically for cruises in the Norwegian- and the Baltic region and the city of Skagen and surroundings express itself as an attractive and pleasant destination for guests onboard the cruise ships.

When the planned new facilities are ready for use, larger cruise ships can be berthed at Port of Skagen.

3D illustration of new harbour expansion at Port of Skagen

The Pirate season is approaching With the monsoon period coming to an end it is once again season for Somali pirate attacks. This calls for a combined action from all players – at sea as well as in land. Protection of ships and longtime commitments in Somalia must go hand in hand, experts underline.

New reports show that the activities off the Horn of Africa are intensifying, but this time the tendency seems to be that the pirate attacks in increasing number are repelled by armed guards onboard the merchant vessels.

This makes it even more dangerous for ships to ignore the threat, and force the shipping companies to generally employ armed guards when passing through the Bay of Aden and still wider parts of the Indian Ocean. This is a highly costly initiative and the Danish shipowners estimate the overall cost of piracy to be more than 15 billion DKK. Yes from new minister The minister of justice in the new Danish government, Morten Bødskov, has as one of his first actions promised that bureaucracy should not prevent Danish ships from using the necessary tools in the counter-piracy effort in pirate waters.

He has announced that he will discuss the matter with the Danish Shipowners’ Association, acknowledging that the pirates are a serious problem.

Danish shipowners want the same non-bureaucratic access to obtain arms permission as Norwegian and Singapore flagged ships have.

The chairman of the German shipowner’s association, Michael Behrendt, recently estimated that the overall cost for shipping companies and the world community is as high as between 28 and 45 billion DKK each year.

The enhanced business practice of Somali pirates bringing attacks further out in the Indian Ocean makes, however, protec-

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tion even harder. The naval efforts have to be spread wide out making an efficient patrol task almost hopeless.

Michael Behrendt compares the situation to letting 40 police cars patrol the entire European net of highways.

A massive effort Shipping companies, specialists, and organizations agree that the solution is a combination of military/armed preparedness and a strong political and humanitarian effort in Somalia herself.

The task, however, is so huge no single industry or country can handle it. The job must be done in short term, middle term and long term involving a whole range of activities.

The Danish government has developed a specific strategy on combating piracy which is related to the many issues associated with the whole piracy problem putting them into a single broad spectrum of Danish efforts to strengthen the coordination of the things to be done and ensure consistency and context. This strategy is also related to the Danish Somalia strategy. However, both strategies point out that Denmark cannot solve the problem alone.

United Nations is working on the pirate challenge and another of the international players, which can make a difference, is the EU - experienced in military action as well as in international relief and development.

Af Finn Bruun

The Pirate season is approaching

5

The European Parliament:

Stronger European commitment to combat piracy - Enough is enough. This was the opening statement from member of European parliament, Georgios Koumoutsakos when a well attended hearing in Bruxelles on the12th of October set off to kick start a common European effort against piracy.

The Danish Shipowners’ Association has for quite some time been working to draw more international political attention to the piracy problem, which is considered a challenge reaching further out than just the shipping industry, urging that more must be done.

And as the vice chairman of the parliaments transport committee Peter van Dalen who co-chaired the hearing with Georgios Koumoutsakos puts it: “This is a results’ debate”, clearly formulating the hopes of the many on the more than 100 participants from the shipping industry and from the political world as well as his fellow speakers on the panel, who all found that piracy is a problem which must be put higher on the agenda.

As Peter van Dalen later explained to Danish Maritime Magazine: - It is a heavy task to get this issue higher on the European agenda of Europe, but I am optimistic because we have seen almost all the political groups of the parliament attending the meeting and hearing the experts. Now they know that piracy is a growing problem. Before the hearing I was in contact with several colleagues and know that they are truly interested in the new aspects that we are facing now. So we will have a new debate where we can intensify the discussions.

The discussions will include the Commission, probably with the participation of the commissioner for transport Siim Kallas.

The hearing which was titled “Facing the threat of piracy” made it clear that at the moment the effort of countering the piracy problem has had some success. The number of hijackings has come down. Before one pirate attack out of four

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Stronger European commitment to combat piracy

reached its goal. Now it is one of every 14. So far no ship with armed guards onboard has been taken.

Growing problem However no one expects the problem to go away. On the contrary, the reports given at the hearing indicated that the problem is growing.

Today almost 400 seafarers are hostages. Thousands of ships and seafarer are in danger when passing through pirate area.

And even though naval forces of EU, NATO and other states are working round the clock to patrol the Gulf of Aden it has become increasingly difficult to protect shipping traffic as pirates have extended their operations into the Indian Ocean.

As deputy director of the Maritime Safety Division of IMO, Chris Trelawny pointed out the problem is not just piracy, but a lack of maritime control, lack of military capacity and not least lack of political will to secure the necessary cooperation.

- But this is a situation that the EU can do something about, he stated.

The role of the EU in countering piracy was a general theme in the discussions. Not only does EU shipping account for more than 41 per cent of world shipping, the EU has capacity in all the fields necessary to make a holistic approach: Political, diplomatic, humanitarian and in development.

Again and again the need for a coordinated effort on all levels was highlighted during the hearing.

Also the EU stand on the question of armed guards was debated. Today on state after the other – including Denmark and Norway - allows armed civil guards onboard the vessels when

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The European Parliament discussed piracy in a hearing attended by more than 100 politicians, representatives from the shipping industry and organizations.

passing through pirate waters, and some countries like Spain and lately Italy are willing to deliver soldiers to protect the vessels during passage.

The EU has accepted that the decision on armed civil guards on the vessels is to be taken by the shipping companies and the flag states.

However IMO is no strong supporter of the employment of guards: - Armed guards protect the individual ship whereas IMO’s objective is to the secure the shipping industry as such, he said adding: - It is true that no ship with armed guards has been hijacked.

But almost the same goes for ships with unarmed guards.

He indicated that the piracy problem must be addressed on the political level and that the IMO guidelines – including the Best Management Practice 4 – specific to Somalia must be followed, while coordination of the efforts on all levels is necessary.

The money One of the major driving factors behind piracy is the high profits from the ransom money, and D. Lenioir EEAS, European External Action Service, stated that the job is to change the risk/ profit balance for piracy, making it harder for the pirates to operate and making them face the consequences of their action.

The discussion revealed that piracy can be well paid. The Greek shipowners stated, that an ordinary pirate in general could expect an income of up to 14.500 USD during a five year long career – compared to an average income in Somalia of about 500 USD a year.

However it is the backers who make the money, and banks in some countries were criticized to assist money laundering.

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By Finn Bruun

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Stronger European commitment to combat piracy

7

Jan Fritz Hansen: - We need a fist as well as development initiatives to combat piracy.

Said A. Hussein, Chairman of the Somali Danish Diaspora: - The efforts must involve local Somali people.

Piracy:

The long term solution must be found ashore A holistic approach to piracy requires hard as well as softer action: Long term development ashore and robust protection of the ships passing through dangerous waters. The Danish shipowners are looking both ways.

Today everybody agrees that piracy is a truly complex problem. The solution calls for action on a whole range of issues at the same time, and in his approach deputy director of the Danish Shipowners’ Association Jan Fritz Hansen calls for a holistic way of thinking: - The effort must combine several initiatives, he stated, and who can do this better than the EU. The European Union is a unique place for providing this approach being a respected stake holder in the region in military diplomatic, commercial and humanitarian terms.

And this last issue had a special focus at an event in the Danish Shipowners’ Association’s house in Brussels following the piracy hearing: ”Facing the threat of piracy” in the European parliament on October 12.

The Chairman of the Somali Diaspora Organization in Denmark, Said A. Hussein, explained the need for a strong effort to create a stabile situation in Somalia:

8

The long term solution must be found ashore

- We need to give young people an alternative to piracy.

In the current situation with massive unemployment, hunger and uncertainty many are desperately trying to provide for their families, Said A.Hussein said indicating that to them the thought of becoming pirates is not far away.

- The international community has yet to develop a serious strategy to combat the problem. The first and most critical step for the international community is to recognize that the long term solution on the piracy problem is not to be met by military means alone.

He stressed the importance to involve Somali citizens in the different projects, as no one else can enter the complicated Somalia society in a more effective way. The solution will require a comprehensive strategy including elements as political reforms, economic development and stability in the country and actively involving the Somali diaspora in these efforts.

The strategy needs to fight corruption and create stability and trustworthy leadership.

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Mikkel Runberg, Guardian: - The politicians must provide the tools through rules for the industry.

Pirate recruits - We must investigate the roots of the problem and find solutions. Until then, the pirate gangs will have a steady supply on recruits in form of young men – unemployed, hungry and desperate, he said underlining that their wealth as pirates can never be achieved through honest means.

- In this way the problem never stops, he said.

He himself is involved in a new Danish initiative “Somali Fair Fishing”, where the aim is to train especially young Somalis to enter into the fishing industry in the rich fishing waters in a both commercial and sustainable way. It is a non-profit project driven by Danish and Somali experts, business and civil society.

He hopes that the project can provide job and training to young Somalis and that the project at the same time will show that it is actually possible to create functioning projects inspiring others to engage in this kind of task.

- The solution is to be found on land and have to be in cooperation with the Somali people. They must be partners in this fight against piracy, Said Hussein underlined.

The fist The other side of the holistic approach is more hardcore. Danish shipping companies as their colleges in many countries find it necessary to protect ships and crews by using armed guards aboard the vessels though the Gulf of Aden and parts of the Indian Ocean.

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Since Danish shipping has quality shipping as a guideline it is important that the standard of the guards is high.

One of the Danish players in the security industry involved in armed protection of ships is Mikkel Runberg, who is managing Partner of the company Guardian. He is a former member of the Danish Special Forces.

- We know the risk of piracy is spreading day by day not only in East Africa but also to West Africa. The problem will not go away as it has become a significant business for criminals who are developing their tactics every day, he said.

He welcomes the long term holistic approach.

- The pirates are not playing by the rules, he said calling for political attention to the need for the right tools – for shipping as well as the security industry to deliver a flexible and robust way to deal with the challenges.

He stressed that security companies involved in armed protection of ships are not mercenaries.

- We are social and intelligent people and the politicians should not hesitate to go into discussion with us to find a liable way forward, he said pointing out that there are many capable security providers, who need to be backed up by some rules to regulate the industry in cooperation with the shipping industry.

- The better we are prepared, the better everybody will be prepared. It is all about taking care of people, Mikkel Runberg said.

By Finn Bruun

The long term solution must be found ashore

9

Employers and employees:

Traditional opponents join forces The piracy problem is such a heavy burden to shipowners as well as seafarers that the traditional differences in opinion between their organizations have been put aside. Both parties welcome the initiative from Peter van Dalen and Giorgios Koumoutsaks to activate the debate in the European Parliament.

Mark Dickinson, EFT Spokesperson: - We need decisive interventions to defeat piracy.

Pia Voss, deputy director of the Danish Shipowner’s Association, sees piracy as part of the social area, in which organizations from employers as well as workers must cooperate.

Therefore, she was pleased to be able to present a common initiative from the social partners in connection with the European Parliaments hearing on piracy in Brussels on the October 12.

- I was happy that the social partners actively participated in the work to meet the challenges from piracy. It is positive because in some other areas we don’t always look at things the same way. But in this case we have to find common ground, she said as she presented a statement from both ECSA and ETF calling for a holistic, coordinated approach to the problem.

- The continued surge in pirate attacks calls for action both at sea and onshore. However, a holistic and coordinated approach should be taken in order to address diplomatic, military, trade and most importantly humanitarian concerns. The EU is in a unique position to do so, the ECSA and ETF states calling on the EU to adopt an ambitious and coordinated response to the fight against piracy.

Both partners are worried that pirates are showing strong adaptation skills altering their modus operandi to increase their chances of success.

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Traditional opponents join forces

- Moreover, the approaching end of the monsoon season combined with the current humanitarian emergency in the Horn of Africa, are concrete elements most likely to worsen the situation, they stress that piracy is a multifaceted issue, which can only be resolved with a comprehensive and all-encompassing strategy onshore and at sea.

ECSA and ETF believe that the EU is uniquely placed to provide such a holistic approach. - Indeed, the European Union is a well respected stake holder in the region in military, diplomatic, commercial and humanitarian terms. Few international organizations have such a scope of activities at their disposal.

However, the EU seems to be suffering from a general lack of coordination when it comes to addressing piracy and the humanitarian challenges faced in the Horn of Africa, they state.

ECSA Secretary General, Alfons Guinier, strongly believe the EU could make a significant difference in the area, if it’s different services took a coordinated and concrete approach to piracy: - This is not only a diplomatic or military issue, but first and foremost a humanitarian problem, he stated.

Decisive action EFT Spokesperson Mark Dickinson said: - We need decisive interventions to defeat piracy and of course to protect the seafarers. The priority must be that the seafarers are not placed in harms way. The insurance, legal and liability questions therefore need resolving in the seafarers favour and governments must move quickly to resolve the impasse over the carriage of private and or public armed security guards and support the IMO’s initiatives in this regard.

Strong influence In the Danish Shipowners’ Association’s house in Brussels Mark Dickinson said that the debate is highly needed. He mentioned the frustration of the seafarers and he pointed out that all parties must cooperate: - When we work close together we are very influential.

At the hearing in the European Parliament he mentioned that the problem was so severe that failing to do anything about it could lead to risk of some form of global blockade of the dangerous spots.

By Finn Bruun

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EU naval force

We are not at war with the pirates We are fighting a business model not a war with pirates, Rear Admiral Christian Canova, EU Naval Force in Somalia, said as a member of the expert panel during the European Parliament’s hearing on Piracy in Brussels. He saw the engagement of the EU naval forces more like a police operation as piracy today is organized crime.

The naval force of the EU is doing a highly appreciated job in the Gulf of Aden though far from possessing the capacity to protect every single ship against the increasing pirate threat.

However, it was very illustrating, when Rear Admiral Christian Canova in the parliamentary hearing on piracy was able to show detailed air surveillance photos of the Somali pirate camps where boats, outboard engines, fuel tanks and equipment were lined up ready for use.

Nothing would seem easier that to blow up the whole thing from the air. But that is not an option. Military operations in land are not part of the international strategy.

As the Rear Admiral saw it, shipping is now in the critical phase, with the hunting season going in now as the monsoon season has ended by the end of September.

No actual hijackings However Christian Canova noted that so far no pirate attack has been successful.

He stated that searching an area as vast as the Indian Ocean resembles patrolling the continental Europe in one police patrol car – at five kilometers an hour.

- We have to be imaginative and we have to enter into close relationship with the merchant fleet community and the shipping companies to counter the new tactics of the pirates.

- There is good news and bad news. The good news is that we are containing the threat. This year we have 10 ships and 247

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We are not at war with the pirates

crew members taken hostage. This is actually pretty low. The lowest was 2006 with six ships. Last year it was 18-20 ships and more than 400 hostages.

- So my assessment is that EU NAVFOR together with NATO and others in the coalition are pressing the pirates.

Higher ransom On the negative side he pointed out, that the ransom payment is increasing to 108.2 million USD paid in 2011 up till now.

The average is 4 million USD but in some cases up to 18 million USD. And it seems that the length of the hostage situation for the victims is increasing to up to one year.

- The pirates of today are agile, he said.

- We are far away from the small fisherman going out to sea in skiff to try his luck. It is now a worldwide crime organization like in narcotics crimes. They are well organized. Last year they used a Russian merchant vessel as mother ship as basis for attacks far from shore.

Another tactic by the pirates is to use anonymous fishing boats and hide amongst groups of ordinary fishing boats.

The EU Naval Force has a short line of command and attempts to deliver a flexible response to the challenges from pirates based on robust rules of engagement.

By Finn Bruun

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Piracy is still a serious problem which calls for international action – not just armed guards.

Clipper Group on piracy:

Time for international action - The international community has fully shown its impotence by being unable to solve this problem, which has now been running for five years. I honestly fail to see, what shipping companies do differently, CEO of the Clipper Group, Per Gullestrup, says urging the politicians to act in Somalia to stop piracy.

On his part Per Gullestrup has been heavily involved in piracy problems following the hijacking of one of the Danish Clipper Group’ ships, CEC Future, by Somali pirates in November 2008. He does not think that the problem has diminished.

He estimates that ransom payment has gone up, pointing out that there are signs that the pirates have become more violent: - Today, a hijacking lasts much longer time than when our ship was taken, but the good news is that all companies have discovered that the piracy problem exists. My estimate is that most shipping companies now protect themselves at some level and follow Best Management Practice 4. That means that many of them now use armed guards. We have heard figures of up to 8090 per cent coverage, and that sounds likely in our world, he says.

- We have ourselves decided to use armed guards, on every single ship sailing through the area. We take no chances whatsoever and I think that many serious minded companies have the same approach, Per Gullestrup says.

Game changer - The moment you take armed guards aboard you change the game, because, you make it much harder for the pirates to hijack the ship. In recent days the press has reported three attacks, including one against a Torm vessel, all beaten back by armed guards. That’s 100 per cent success.

- We will have to see, how the pirates are going to react now that they face difficulties.

Recently we have seen that they are going after tourists in Kenya. It might be a fine business model for them, but it means that they must operate on land,

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Time for international action

which is harder. This indicates some degree of desperation. They feel that they have to enhance their business.

Per Gullestrup does not expect armed guards on merchant vessels to trigger any escalation from the pirates’ side.

- We have to distinguish. The pirate’s model works because they can use the boats from which they would normally fish: Skiffs with two Yamaha outboard engines delivering a speed of 20-22 knots can attack most normal cargo ships sailing to the normal 14-15 knots. If they have to use larger weapons, it requires a more stable platform to operate from. And this is something entirely different, he explains.

- Use of machine guns requires much more stability than these skiffs can ever give, whereas a merchant ship has a stable platform that makes it possible to shoot with greater accuracy than attacking pirates.

- But we should not underestimate them. They have been able to change their business practices from the Gulf of Aden across the Indian Ocean. And they’ve used cargo ships as mother ships and so on. But I fail to see how they can step up - and even if they could step up, why should that deter us from protecting our ships, he asks.

Start with Somaliland - The international community has fully shown its impotence by being unable to solve this problem which has now been running for five years. I honestly fail to see, what shipping companies could do more.

Shipping companies show that they are prepared to take responsibility. An example is our support for the organization

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Save the Children’s education projects in land, but we are fully aware that our guards and the naval presence is treatment of symptoms only, Per Gullestrup states and underlines that the problems must be solved in land.

- What you need is an international effort primarily in Somaliland, which is relatively stable with no major safety problems. If you could establish a bridgehead in Somaliland helping them to help themselves this basis could exported to Puntland, which can be considered a semi-functioning state. An effective help to Puntland to create stability would solve much of the piracy problem - most of pirate attacks are actually out of Puntland , not Somaliland, he says continuing: - Politicians should focus on what is possible and make

Stopping the crude oil - Our current efforts are treating the symptoms only, and if we are not constantly alert we put our crews at risk. It is so worrying and we spend fortunes on protection, Per Gullestrup says wondering what it would take to make big unions active and maybe say to all the crews: “We do not think you should work there“.

- If there is a general reluctance to pass through the Gulf of Aden, this will of course equal a blockade of the Suez Canal and stop the transportation of crude oil and thus increasing gasoline prices - 8-10 dollars per gallon in the U.S. In that case I guarantee that something will be done.

- The problem is that there is too much talking going on without results. The UN has set up working groups and contact groups for nearly four years without any solution. We in the shipping industry have tightened up and become better to protect ourselves but that is not enough, he says warning that several countries with naval vessels in the areas now indicate that soon they cannot afford to have them there due to the financial crisis.

- It will be a great misfortune. We need to have some sort of defense, as long as the real problem is not solved. We need armed guards, although it is totally unfair that we as companies engaged in international trade are brought into this situation.

- We are doing everything we can, but where is help coming from, Per Gullestrup asks.

"

- Politicians should focus on what is possible... an effort in Somaliland and move on from there. I think we must stop expecting Somalia to be one country. In reality there are three states - Somaliland has de facto broken away. They’re not going to be together again.

- By accepting this and recognizing Somaliland as an independent state we can support them internationally. That’s the kind of discussion we should have, he underlines.

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Time for international action

15

Danish security company on piracy problem:

Not solved within the next five to 10 years AS Solution provides armed guards to protect merchant ships passing through pirate threatened waters. - It’s all about deterrence and show of force, the director says. So far his company has not been forced to actually fire shots.

- Today the piracy problem extends all the way from Sri Lanka to Oman and the Suez and down to Durban in South Africa, says Sonny Schürer, CEO of the Danish security firm AS Solution, providing armed guards to shipping companies.

He estimates that most of shipping companies requiring protection either enter into an annual agreement with a single large security corporation or shop around a bit from case to case.

- No supplier has full coverage everywhere, he states.

Sonny Schürer’s company has been active in protection against piracy for more than five years.

- Our main focus is executive protection to major clients around the world, and since some of our customers have been sailing their yachts through the exposed waters, we already operated with armed guards on board five years ago.

- And our current service to shipping companies was started a year ago and it is based on our international presence.

- We already had offices in Kenya and Tanzania as well as in Mumbai and Singapore. On annual basis we have operations in more than 50 countries. But as our set-up in those countries was quite large, and the demand for our kind of service in relation to piracy was there, we found it natural to go ahead, he said, adding: - It is of utmost importance to us that all precautions are in place before our team set out. All agreement must be clear and we make sure that the people we send out are individuals, who really know what they’re doing and have international experience.

- In fact we daily receive 5-10 inquiries from people who want go to sea with us, but it is crucial to select the right people.

Some applicants have not even been aboard a ship before.

- We also recruit through our offices in the Denmark, U.S. and Africa. And we bring personal in from our partners around the world. Thus we have multinational teams as well as purely Danish teams. On the Danish ships Danish teams are often prefered, because in many cases this simplifies the approval procedures, Sonny Schürer says.

ISO certification AS Solution’s activities in piracy protection with armed guards are increasing:

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Not solved within the next five or 10 years

- The last few months, we probably had a level of about 180 man days per month at sea corresponding to six men per day a level that we have been running for about half a year.

- We have many applicants, both from abroad and from Denmark.

In all cases we have a careful selection process. And although it is good to have a military background, it is not enough. We strongly prefer applicants who have experience working in an international environment and thus understand what is happening around them. We don’t want anything to happen onboard. So our teams must be able to work with other nationalities, he says stressing that training is very important and that all procedures must be practiced in the process. Furthermore, there is at least one team member, who is trained in emergency treatment or first aid at a high level. The teams bring their own equipment.

He emphasizes that AS Solution is ISO certified and thus meet a predetermined level of quality even when it comes to the armed guards.

- On small ships we use at least two man teams, but usually teams consist of four men, he says.

Deterrence important He does not consider armed guards onboard ships through pirate waters to be an escalation of the conflict: - In reality the armed guards just move the problem on to one of the many ships, who have done nothing to protect themselves.

- When we study the statistics it is clear that no ship with armed guards has ever been hijacked.

- Our primary objective is deterrence, when the pirates come close. We know of situations, when a ship has been attacked by skiffs on both sides, where the firing of warning shots has stopped the pirates before they got too close.

- What we normally do, when we see that a pirate attack is underway, is announcing clearly that the ship has armed guards aboard. The pirates are strongly advised to stop while we are showing force, letting them know what to expect.

If it has come so far, that warning shots must be fired, the process has already reached a late state. Until now we in

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our company have never been forced to fire any warning shots.

But several times we have experienced approach from pirates where they came close and the ship’s crew was in “lockdown”. But as soon as we showed that we had armed guardsonboard, they changed direction.

- For us it is crucial that our people have a high quality and can cooperate with the ship on long trips where you are close to one another. We are guests.

- Some of our guards have maritime backgrounds, but most come from the military and are familiar with international operations and are trained in firefighting on ships, man overboard and similar basic maritime skills, he says.

Sonny Schürer considers the piracy problem serious and he has no expectations that it can be solved over the next five maybe ten years.

- In Somalia, it is a whole country that needs infrastructure and needs to establish a government. All that takes time, he points out adding: - We do hear from practitioners that even though there is much talk of a coordinated effort against piracy, in reality nothing much is happening in relation to stop the problem in Somalia.

- The problem is difficult, since it is no longer just off Somalia but includes the entire Indian Ocean. The high risk areas are growing.

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Pirates and cowboys - In this sense, the pirates changed strategy, but although there are examples of attacks by up to 12 skiffs at once, the pirates withdraw when they become aware that they will be shot upon.- in contrast to situations involving ships with unarmed guards or completely unprotected vessels, he says.

- But it all depends on what kind of ship we’re talking about.

We have been aboard ships with 40 meter freeboard, sailing quickly without stopping. They are obviously easier protected than the slow ones.

Sonny Schürer notes that today many security companies are active in pirate waters.

- We see large reputable companies but also many – especially Eastern European – firms which offer their services very cheaply.

But usually they neither have staffed offices nearby or insurance or weapon permits in place. There are many cowboys in the market, he says, although he believes that they gradually will disappear because customers will prefer a better quality.

- Our ISO certification implies a certain standard securing that procedures are in place and that things are being done right, he says, indicating that AS Solution primarily serves Danish and European companies.

By Finn Bruun

Not solved within the next five or 10 years

17

SHIPPING

– Denmark’s biggest export business Shipping is by far the largest export business in Denmark and stays competitive by the help of the Danish tonnage tax system and the Danish International Ship Register. The new Social Democratic government, recently elected in Denmark, is not expected to change this.

Danish shipping is expected to generate 175 billion DKK in foreign currency earnings this year. At the same time, the whole maritime cluster has created more than 100,000 jobs onshore in Denmark. Facts that are of great importance to Danish economy.

Danish shipping’s competitiveness is created through the regulatory framework consisting of, among other things, the Danish tonnage tax system and the Danish International Ship Register (DIS). Without this regulatory framework, Danish shipping would not exist, it would move to other countries, especially in the Far East, according to the assessment of the Danish shipping companies.

-80 per cent of shipping nations have a regulatory framework such as the one we have in Denmark. We see it as international standards, which are independent of the colour

of the government. The Danish International Ship Register has existed since 1988 under changing governments, and the tonnage tax system was created in 2001 by the then Social Democratic minister of taxes, says Jan Fritz Hansen, Executive Vice President of the Danish Shipowners’ Association. He does not expect the regulatory framework to be changed by the new Danish Social Democratic government.

The Danish International Ship Register entails that wages paid by the shipping companies are not taxed in Denmark.

In other words, the shipping companies pay net wages.

The Danish tonnage tax system is similar to the one in the Netherlands, Germany, and other countries. The system means that the normal taxable income is replaced by a calculated income based on the tonnage of the shipping company.

The development of the merchant fleet in Denmark/Norway/Sweden 1980-2011 (index-linked TDW) 180

160

140

120

100

80

60

40

20

0 1980

1984

1988 (DIS START)

1992

1996 Denmark

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Shipping – Denmark’s biggest export business

2000 Norway

2004

2008

2009

2010

2011

Sweden

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Sweden’s shipping companies are moving out Jan Fritz Hansen thinks that the frame work conditions are of great importance; at the same time it is very important to have stable frame work conditions.

-When you build a ship, you will have it in your possession for many years. That’s why it is important that you can rely on the existing regulatory framework, Jan Fritz Hansen says.

If the Danish government should consider changing the DIS and the tonnage tax system, they just have to look at the neighbouring country Sweden, where the shipping companies to a large number have disappeared out of the country.

-They only have some domestic ferries left in Sweden and that’s it. You can regard the Danish regulatory framework as a kind of indirect state subsidies, but without it the shipping companies would not be able to keep the jobs. When we introduced the tonnage tax system, the merchant fleet had already begun disappearing, Jan Fritz Hansen says.

30 per cent higher wages The Blue Denmark, which the maritime cluster is called, consists not only of shipping companies, but consists also of shipyards, manufactures etc.

-If we look at the whole Blue Denmark and include them all, the wages and taxes paid are approximately 30 per cent higher than the average of the population in Denmark. The shipping business can afford paying high wages. Denmark has

to find niches, where we can keep high wages and pay more taxes and still be competitive, Jan Fritz Hansen states.

The government: no plans of changing frame work conditions The very recently appointed Minister of Business and Growth, Ole Sohn, who also has shipping included in his field of responsibility, has stated that the government has no plans of changing the regulatory framework.

-We have no concrete plans of changing tax systems for parts of trade and industry, he has stated.

On the other hand, the government plans to develop a new strategy for business and trade, focusing on green growth and better frame work conditions for trade and business in general.

By Tina Altenburg

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 96 20 47 18

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Shipping – Denmark’s biggest export business

19

The significance and development of “The Blue Denmark” “The Blue Denmark” is an idea. It is a description of the Danish maritime sector as a single unit – a self-reinforcing, locally concentrated network of shipping and maritime companies, trade associations, schools and academies, maritime research units and the relevant authorities. This is a powerful idea that can help the maritime sector attract political support and assist government officials in drafting acceptable policies for business and economic development. It may even influence the practice and self-image of key maritime decisionmakers in a desired direction. It is therefore not surprising if “The Blue Denmark” is seen as almost universal remedy to the challenges faced by Denmark as a maritime nation.

The alleged strength of The Blue Denmark is that is allows for reaping the scale economies that derive from concentration of economic activity: companies can benefit from a shared labor force of workers with common skills and abilities; the concentration of similar enterprises attracts sufficient num-

20

The significance and development of “The Blue Denmark”

bers of advanced suppliers; and knowledge flows more easily between companies and helps improving the productivity, growth, and competitiveness of The Blue Denmark.

A Danish maritime cluster The conceptualization of The Blue Denmark as a national and complete maritime cluster was appropriate in the late 1980s when the shipowners and the authorities started enacting the idea. Denmark had numerous strongholds of shipyards and maritime industry located around core harbors and ports, and small islands specialized in providing skilled seafarers to the national fleet. The localities were closely knit: the Copenhagen-based shipowners owned the major yards and used these as “laboratories” for developing modern ships and ship technology, often in collaboration with co-located specialized suppliers. This antediluvian Blue Denmark provided considerable exports and thousands of industrial jobs,

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Henrik Sornn-Friese and Carsten Ørts Hansen are authors of the book Landlubbers and Sea Dogs – The case of labor mobility in the Danish maritime sector in a time of accelerating globalization.

The book is in course of publication (CBS Press/Nyt fra Samfundsvidenskaberne). It is based on comprehensive research financially supported by the Danish Maritime Foundation and explains how increasing globalization in the maritime sector challenges the entwined shipping communities of traditional maritime nations. Through an empirical study of developments in labor mobility within the maritime sector in Denmark it shows that the shipping companies have been significant providers of competence to the national maritime skills base, but also that their current global factor sourcing choices threaten to dissolve this skills base.

These findings have important implications regarding productivity, growth and competitiveness for policy makers and companies in the maritime domain. The shipping industry is the most global of all industries and its events thus provide a good indicator of what is to come in other industries and are therefore relevant in a general perspective.

and it was breeding ground for many global market leaders in the maritime industry. It was moreover interconnected by a shared labor force: National seafarers obtained competence from working aboard Danish operated vessels in the crosstrades, and this prepared them for subsequent domestic maritime jobs in short-sea shipping, the tugboat sector, the harbors and ports, classification societies, nautical schools and the authorities. Some even brought their maritime competence into maritime industry and the maritime business services sector.

Maritime micro clusters However, we hesitate from considering the maritime sector in Denmark as a coherent entity nowadays, and perhaps the Danish Maritime Cluster is no longer a useful image in the context of business and development policy. Denmark still has world leading maritime companies and there are vibrant, specialized maritime micro clusters around some harbors and ports. But the major shipyards have disappeared and in the best-case scenario the relationships between the shipowners and the equipment makers have become indirect. The maritime micro clusters are local and practically unconnected.

Copenhagen has become a vigorous shipping cluster with world leading operators focused on commercial management. While still a real contributor to the Danish balance of payments the shipping cluster is particularly significant as provider of high-wage jobs for learned people and as magnet for foreign direct investments and talent. But it has also become an entity detached from its domestic base and highly dependent on direct and often close linkages to companies in the other maritime centers of the world.

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Some implications The notion of “Global Maritime Networks” is a more accurate description of the current world of shipping and potentially as powerful as the maritime cluster idea. A nation participating in world shipping markets has to define its special maritime niche and work from this position to build the global linkages that are necessary to be considered as a serious and committed partner.

The question is to which extent global maritime networks can be a vehicle for maintaining the status of Denmark as a leading maritime nation. Clearly, the hollowing out of national shipping industries challenges the policy role of the nation state and raises questions as to which degree policy-making is to be left to interest groups (e.g. maritime unions, shippers’ councils and shipowners’ associations).

At the level of national jurisdiction the important challenge of maintaining a well-functioning maritime infrastructure remains – including the ability to safeguard ships and ship technology and provide proficient port and nautical support services. These are activities that rely significantly on people skilled in maritime fields, and particularly in fields where seafarers have an obvious advantage in terms of education, training and experience.

By Associate Professors Henrik Sornn-Friese and Carsten Ørts Hansen, Copenhagen Business School

The significance and development of “The Blue Denmark”

21

NV Reseach Mananger Elisabeth Harstad: Strong focus on research and development will change the game for modern shipping making fuel efficiency and environmental friendly solutions a must.

No technological revolution for ships In its traditional technological outlook Det Norske Veritas expects quite a formidable development in environmental friendly ships og offshore wind turbines towards 2020, but nothing that we do not already know of today.

Even though the world economy is steaming extremely slowly ahead at the moment, the mere rise in the global population – up to 7,5 billion people in 2020 – will increase the demand for transportation dramatically. And for the world trade this spells more shipping.

At the same time the focus on climate and environment is intensifying. The demand for sustainability and safety in transportation is inevitable.

22

No technological revolution for ships

That is why the Research & Development unit of Det Norske Veritas, DNV, is predicting a strong innovation potential.

In its “Technology Outlook 2020”, presented in Copenhagen on the 29th. September, DNV looks at future technologies in four areas: Shipping, fossil energy, renewable and nuclear energy and power systems.

As Elisabeth Harstad, Managing Director of DNV Research and Innovation puts it:

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- For the next 10 years technological evolution is more likely than technological revolution, but we must expect that the technology will be used in new areas.

For shipping DNV points out that research is strong within sustainable shipping-solutions, innovation in ship design and port solutions, Furthermore we will see an increasing use of environmental friendly fuels as LNG. The megatrends The outlook is based on seven megatrends – scenarios that are generally considered certain, namely: Population, economy, governance, information technology, energy, and natural resources.

By 2020 56 percent of the world’s rapidly growing population will live in Asia and be greying in the West, China and Japan but younger in the Middle East. Most people will live in cities.

The world’s economic center is shifting to Asia and relatively more of the economic outputs will occur outside the developed economies. BRIC countries’ output may constitute 50 pct. of G7.

The lack of effective and inclusive governance on global issues such as financial stability, trade, climate change means increasing risks.

On Information Technology DNV states that Moore’s Law (the doubling of transistors every second year) will still be valid in 2020 and cheaper computing and wireless connectivity will mean much higher automation and flexibility – and more security issues.

Energy faces a decade of transition with focus on how to provide environmentally friendly and sustainable energy at affordable prices. The future is low carbon, with focus on renewables, but Elisabeth Harsted emphasizes that fossil fuel will still be dominant even after 2020. Wind, solar and natural gas are among the coming winners, and she points out that shale gas might be a game changer. But so far alternative fuels do not, however, deliver enough output Natural resources are under increasing stress, but DNV finds that even though growing urban population is a challenge in this respect, addressing the resource issues is a hard but not insurmountable task.

Climate change will be limited over the next 10 years, but in case of “business as usual” green house gas emission will rise by up to 20 pct. I 2020, DNV accentuates a warning that the next decade is considered crucial to prevent a tipping point for irreversible development.

The future ships It the 202 Outlook DNV points out that not only the increase in world population but also the more resource-intensive lifestyle in still more countries with a growing middle class will make maritime transport grow and the world fleet increase.

The Danish Shipowners engage in a strong effort to meet the climate challenge and broader environmental issues developing green ships of the future as well as entering a partnership

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with the Danish Authorities to secure a quality approach to sustainable and efficient transport.

To this end DNV’s list of new technologies will be interesting although no surprise: Low energy ships, green fueled ships, electric ships, digital ships, arctic ships and virtual ships: The high bunker costs combined with the general focus on the environment is a trigger for innovation driving new technologies and concepts into the world fleet. Not necessarily new ship types, but new solutions such as Air Bubble Lubrication (bubbles beneath the waterline reducing friction drag), Air Cavity Systems (reducing hull’s wetted surface reducing fuel consumption by 10 pct.), Hybrid materials (lightweight composite materials) and propulsors (combinations of shaft propellers, pods and efficiency devises) as well as ballast water free ships (a trapezoidal hull with a transversely raked bottom provides stability and draft – thus avoiding discharge of ballast water in the marine ecosystem.)

The green fuelled ship means considering alternative energy sources like LNG and biofuels. DNV indicates that it is anticipated that within 10 years a considerable share of new ships will have natural gas fuelling. However the LNG bunkering infrastructure is limited today.

Electric ships The Eletric ship means a hybrid electic ship that could contain diesel electric configurations, maritime fuel cells, battery packages, solar panels or retractable wind turbines and superconducting motors – the Toyota Prius of the seas.

E-navigation refers to combined position data, weather and surveillance data, onboard sensor data to optimize secure, economic and environmental performance. The systems are in use by front runners in shipping and expected to be followed by the majority of the fleet in 2020.

The shrinking summer sea ice will lead to development of arctic ship traffic and faster development of ice route optimization software, hull load monitoring and new icebreaking concepts. DNV expects the Arctic Ocean to be largely ice free in summer within a decade.

The virtual ship consists of advanced modeling methods for new hull design and propulsors. The right design may save up to 20 pct. of fuel expenses at zero cost.

DNV underlines that many of the new ideas need to be tested in demonstration project and larger scale. The question of finance here is a crucial factor.

Elisabeth Harstad points out that DNV outlooks tends to be rather accurate. On one issue, however, she admits that the predictions have not got it right in one issue: CCS, Carbon Capture and Storage has not yet been as important as expected.

- Here we were too optimistic, she says.

By Finn Bruun

No technological revolution for ships

23

Security rules ought to be revisited 10 years have passed since the attack on World Trade Center 9-11-2001.

Everyone was chocked and the disaster called for action. One of these actions was that IMO already by the end of 2002 endorsed rules and regulations for port security. Of course EU and Denmark followed and implemented the general set-up. And maybe even more, just to make sure that all possible steps were taken to avoid that it could happen again.

Fortunately there have not been acts of terror in any Danish port or against ships in any Danish Port. That is essential.

Both for the people that could have been killed or injured and for materials and investments which could have been damaged. Moreover, it is also vital for the free trade. Shipping makes a difference for the Danish economy and for the mobility. 80 percent of the Danish foreign trade is transported

24

Security rules ought to be revisited

by ship through Danish ports. It is therefore not a question if Danish ports should fulďŹ l the international obligations and requirements. We must, but we also have to revisit the outcome and consequences of all these initiatives and regulations.

Denmark is a small and open economy with a long coastline and a large number of islands. We have many ports, however, ports which are regarded as small on an international

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scale. Due to the geography and the nature of a very open economy all ports have international trade, first of all from our neighbours in Northern Europe. Nevertheless, 80 Danish ports with a combined total of 300 port facilities are secured in compliance with the rules and approved by the authorities.

But how do all these rules intervene in the daily life of port management? And what is the effect of the measures that the ports have been forced to take? Are they reasonable and proportionate to the attacks they are meant to prevent? Not necessarily, some of the rules and requirements are incomprehensible, inexplicable and maybe even needless to have.

The costs for the port security are covered by the ports themselves. We do not have port police or any other municipal authority to help solve these tasks. Everyone comply with international standards and shipping companies must be assured that the secured port is a safe port, but we also need to focus on competitiveness and flexibility not only among ports but also in the transport chain. There is an outspoken need in the ports to look at new practical ways and solutions for security.

Cooperation between ports, between ports and ships and between ports and security companies is needed. Nobody says

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that the way we have organized it until now is the only solution. It requires that we break up the rules, approvals, fear of sanctions, habits and organizations. All ports have an interest in finding the best practices. If this is to be done cross border, there is a need for transparency and cooperation.

Security is highly profiled and everybody agree that all possible measures should be taken. Therefore there is a risk that we will just be met by new requirements and routines regardless of cost or reason. But we dare to put forward the question: Do all of our efforts bear fruit? Danish Ports urge the policy makers to start a constructive dialogue and revisit the rules and regulation introduced since 9/11. Such an initiative must be taken on an international level and EU can very well take the initiative. We ask that it could happen soon - Denmark takes the chair in EU in 2012. That should be an opportunity to start the dialogue. A closer look on how and whether things work before an introduction of further rules and regulations is simple common sense.

Security rules ought to be revisited

25

Greece and Denmark agreed on cooperation on joint WEB-marketing of the European Short Sea Shipping This agreement was reached during a Shortsea Conference in Piraeus Greece, on one of the few Liberty Ship left in the world.

SPC Denmark and the Transport Innovation Network (TINV) was part of a European Shortsea Shipping Conference in Piraeus / Greece, 5 October. Also, EU DG MOVE-D1 (Maritime Transport & Logistic) office was part of the conference with a paper on the EU Commission’s strategy on SSS. There were participants from EU countries such as Finland, Norway, Spain, France, Poland, Romania, Bulgaria, Ireland, Germany, England, Holland, Greece and Denmark.

SPC Denmark / TINV presented a paper to inspire and challenge participants in tomorrow Shortsea Shipping.

This included: • Suggestion that EU is developing a ”European TINV” in cooperation with the ESN on the basis of a case ”TINV DK”.

• Presentation of the EU project ”BSRinnoship” as a case study on knowledge and innovation-based competitive SSS project in the Baltic Sea which will generate important knowledge to the maritime EU. • Presentation of EU project “PROPS” as a case study on knowledge, experience and marketing platform for the SSS in Europe.

• EU Project “Press4transport” as a case of dissemination of research & innovation knowledge to the maritime EU.

oriented” and continue to form the future “EU SSS” at a competitive international level.

There was a lively debate during the conference. Some of the topics discussed were: • Reducing the regulatory burden on Shortsea Shipping.

• Competitive and efficient transport solutions based on Shortsea Shipping.

• Branding and marketing solutions for Shortsea shipping network.

• E-Freight opportunities Shortsea Shipping.

• Decision support systems for customers and SSS operators.

• Marco Polo calculator ”European Ecobonus”.

• 45 ”Euro container with” 33 pallets ”.

• The EU single transport document.

During the conference, an agreement was made between Denmark / SPC Denmark and Greece / Piraeus University to conduct joint marketing platform Shortsea Shipping. Steen Sabinsky is looking forward to expanding this relationship with additional knowledge and know-how exchange on maritime activities

Steen Sabinsky from SPC Denmark / TINV clarified that the work of ESN network and SSS in the EU must be ”business

26

Greece and Denmark agreed on cooperation on joint WEB-marketing

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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.

You are an ambitious self-starter with strong communication skills and are able to communicate with all levels of the organization.

You speak and write English fluently and are an experienced user of all Microsoft Office products.

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.

Our corporate culture is characterized by well-defined values and an informal but performance-oriented work environment. As with any role at TORM, there is plenty of scope for personal growth and professional development.

The position offers a competitive salary and an attractive benefits package including bonus, pension and healthcare.

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

Please submit your application and CV via our website www.torm.com.

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.

TORM is listed on the Copenhagen Stock Exchange (ticker TORM) and on NASDAQ (ticker TRMD).

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

Magasinpost MMP ID-nr. 42870

The Blue Conference 2011 Connecting the Danish maritime industry to the latest maritime research The sixth Blue Conference, an annual Danish maritime conference, takes place in Copenhagen on the 1st and 2nd of December, 2011, in Amaliegade 33, at the location of The Danish Shipowner’s Association. The conference provides the latest results of Danish and international maritime research. The conference is planned by The Maritime Development Center of Europe together with The Danish Shipowner’s Association. The conference is also supported by The Danish Maritime Foundation, giving priority to student participation.

• Maritime Business, Entrepreneurship & Innovation Sustainable and innovative markets and growth possibilities for The Blue Denmark.

How do you launch the sustainable business activities and how do you keep them sustainable?

Why is it so important to connect the industry with the latest research?

It is important for the industry to receive a continuous update on research project development, in order to have an opportunity to evaluate whether the knowledge can contribute to the advancement of the industry. If this is not disseminated, vital knowledge can be lost. It can also be useful for academics to receive relevant input from the industry in order to ensure that research can be utilized by the industry and is practice-near. The conference is unique in this respect, that it provides a platform for research and industry to meet and discuss the latest results. The conference also takes the responsibility for ensuring that maritime Ph.D. students have an opportunity to disseminate their research, which is also unique for The Blue Conference.

Some of the presentations are given by Director Andreas Nordseth, Director of The Danish Maritime Authority; Jan Fritz Hansen, Vice president Danish Shipowner’s Association; Poul Knudsgaard, Director MAN Diesel; Erik Fridell, Assistant Professor, The Swedish Environmental Research Unit, Göteborg and Kim Dahl Johansen, Professor Denmark Technological University. The conference is hosted by the Maritime Development Center of Europe and The Danish Shipowner’s Association.

The following topics will be presented : • Maritime Transport and Technology How far are we with the research of emissions and can this research influence the Maritime industry?

Participants come from maritime universities and academies, the shipping and maritime industries. It is a bilingual conference, and some presentations take place in Danish, others in English.

We look forward to welcoming you. For more information see www.emuc.dk or contact the secretariat at info@maritimecenter.dk For questions about speakers and program setup – please contact Lisa L. Froholdt, Senior Research Associate, M.A., Ph.D. Fellow +45 53537297 or llf@maritimecenter.dk Lisa Loloma Froholdt and Ditte A. Kragh/EMUC

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

The conference is a bridge-building conference which also holds the opportunity for networking, either with other representative of the industry or maritime academics.

• Global Offshore, Oil and Energy Transport This is a business segment in explosive growth. Which possibilities and challenges are there for The Blue Denmark in this segment?