Dmm 1 16

DANISH

MARITIME MAGAZINE January 2016

No. 1 DKK 49,50

NEW YEAR More challenges ahead

VATTENFALL High-tech control centre

WMU Class of 2015

DANISH MARITIME MAGAZINE 1-2016 8 ESVAGT SIGN SERVICE

TOP STORY

OPERATION VESSEL CONTRACT Esvagt is to build a new Service Operation Vessel (SOV) after signing a 10-year contract with MHI Vestas Offshore Wind for servicing the 165 MW Nobelwind project off the Belgian coast. The contract will further established Esvagt as a leading offshore wind operator.

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4 VATTENFALL MANAGES 1000 WIND TURBINES FROM ESBJERG

Thorco Shipping has acquired five large modern tweendeckers. The acquisition is a part of Thorco’s strategy to keep their fleet young and modern to maintain their strong position as a market leader regarding the quality and size of the fleet.

Most people know Esbjerg as Denmark’s leading and largest offshore port and energy city. Only few people know that the former fishing town is also home to a high-tech monitoring centre that ensures that thousands of families and industrial companies their power consumption.

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2016 WILL BE A DIFFICULT YEAR FOR SHIPPING The challenges that were made clear in the shipping industry this year will continue to influence developments in 2016.

This means, that the new year will not be the most exciting year for the shipping industry. However, there will be anticipated positive growth in the three major segments: container, dry bulk and product tanker.

THORCO SHIPPING UPGRADES FLEET

A GOOD YEAR IN STORE FOR THE MARITIME INDUSTRY The industry association Danish Maritime is aware of the fact, that a large part of the shipping industry is hard hit by the current crisis. But retrofit, upgrades and service will fill the order books of the maritime industries in 2016

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WORST POSSIBLE TIMING FOR OIL AND GAS The oil and gas industry in the North Sea is currently being pressured hard due to the low oil price. No one believes that oil prices will increase significantly next year, so the pressure on operators only becomes bigger. This affects the companies working in the offshore oil and gas industry.

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WORLD MARITIME UNIVERSITY GRADUATION World Maritime University’s Chancellor and former Secretary-General of the International Maritime Organization, Mr. Koji Sekimizu, has conferred postgraduate degrees on the World Maritime University’s Class of 2015.

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MAERSK TRAINING OFFICIALLY OPENS HOUSTON FACILITY With their new state-of-the-art simulation simulation facility in Houston, Texas, Maersk Training is setting a new benchmark in the industry for advanced operational simulation training. Maersk has strong focus on human factor elements alongside operational performance.

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WMU AND MAERSK LINE JOIN FORCES

Maersk Container Industry has begun delivering refrigerated containers and Star Cool refrigeration units from its new production facility in San Antonio, Chile.

More than 2,000 40ft high cube Star Cool containers were recently ordered by and partly delivered to international carriers’ CMA CGM, Maersk Line and Sealand.

The Danish shipowner, Maersk Line, has partnered with the World Maritime University in a unique higher education project on corruption awareness. The corruption awareness project - known as CORA - is co-funded by the A.P. Moller Support Fund and Maersk Line.

DANISH MARITIME MAGAZINE ISSN 1903-5888 ADVISORY BOARD President: Klaus Kjærulf, Chairman, SKULD Jenny Braat, CEO, Danske Maritime Jan Fritz Hansen Per Jørgensen, Chairman, MMF og FICT Bjarne Mathiesen, Rambøll Torben Frerks, CEO, Weilbach Lars Thrane, Chairman, Lars Thrane A/S

FIRST MCI CONTAINERS FROM CHILE

EDITOR

Martin Uhlenfeldt Phone: +45 23 66 28 99 mu@maritimedanmark.dk

MANAGEMENT

René Wittendorff Phone: +45 70 20 41 55 rw@maritimedanmark.dk

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Designunivers Printing: PE Offset A/S, Varde

Januar 2016

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DANISH SHIPPING Stronger wind power

BY JENS NØRGAARD

VATTENFALL MANAGES 1000 WIND TURBINES FROM ESBJERG Most people know Esbjerg as Denmark’s leading and largest offshore port and energy city. Only few people know that the former fishing town is also home to a high-tech monitoring centre that ensures that thousands of families and industrial companies their power consumption.

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DAILY NEWS ON WWW.MARITIMEDANMARK.DK

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he Swedish energy group Vattenfall have since 2008, overseen its more than 1.000 onshore and offshore wind turbines from Esbjerg, on the west coast of Jutland. The monitoring centre is one of the largest in Northern Europe.

The centre is manned 24/7 and head by Jan Jorgensen, who has a background as an electrician and electrical engineer.

Along with eight employees, all of whom have a technical background as a mechanic, electrician or as former engineers on oil and gas platforms, he controls the production of power from each turbine. The 1.000 turbines produce approximately 2 GW using nothing but nature’s own power. Monitoring takes place around the clock, 365 days a year, and screens continuously show the development of a field or each turbine, whether at sea or on land.

LARGE INVESTMENTS There is a fantastic view from the monitoring station, of the southern part of Esbjerg where turbine blades, towers, mono piles and nacelles fills up the landscape. The monitoring centre is not the only ones behind the windows of Vattenfall’s major building on Exnersgade. Common to all the departments in the building, is that they work for Vattenfall Wind Power A/S. There are technicians, engineers and navigators who work with project development, exports and production.

The cornerstone however, is the monitoring centre. The Swedish energy group has invested approximately 37.5 billion kr. to date. This is an investment in the shift from fossil fuels and nuclear power in its power plants, to wind energy.

The expansion is far from finished.

Following the inauguration of the wind farm DanTysk 100 km west of Esbjerg in April 2015, Vattenfall and its German partner Stadtwerke München immediately started on their next field, Sandbank, 20 km northwest of the DanTysk field. The new park will be completed in 2017 and will provide sustainable energy wind power to 400.000 homes in Germany. This is an investment of 1.2 billion Euro.

Horns Rev 3 will be Europe’s cheapest offshore wind farm. The price per. kilowatt hour is 77 øre, which is 13 less than the former Climate and Energy minister Rasmus Helveg Petersen had expected. Compared with Denmark’s most expensive wind farm Anholt, where kilowatt hour is at 111 øre, there are major savings.

Consumers will experience savings of 2.2 billion Danish kroner compared to Anholt.

SILENCER Sandbank will have 72 turbines spread over the same number of foundations. They are wedged up to 32 meters deep into the seabed.

This is done using water soundproofing tools and a special bubble curtain which reduces noise in relation to marine mammals. On top of the monopiles, weighing up to 890 tons, are placed so-called connectors, (transition pieces, red.). Finally the towers, turbines and blades are put on. When operational, Sandbank will be able to produce around 244 MW.

Horns Rev 3 is making wind history, with a decrease in the costs of establishing offshore wind. It is also an essential requirement here at home as well as for our German neighbours.

Chancellor Angela Merkel (CDU) and her vice chancellor, Minister of Economy and Energy Sigmar Gabriel (SPD), have put pressure on the energy sector. The price of an offshore turbine must be reduced by at least 40 percent by the year 2020.

On the other side of the North Sea in the Thames Estuary, Vattenfall’s has its largest wind farm - Thanet with 100 turbines and an output of 300 MW. Almost next door is a park called Kentish Flats with 30 turbines, where the energy group is installing an additional 15 turbines.

HORNS REV 3 In Denmark, focus is in on Horns Rev 3, around 20 kilometres out of Hvide Sande. When the tender for Horns Rev 3 was opened, the excitement was huge and the surprise was nevertheless greater. The offer from Vattenfall Wind Power A/S surpassed all expectations. They won the tender in front of Dong Energy, Statoil and Eon.

THE POWER WILL BE DELIVERED IN 2017 With Horns Rev 3, we are well underway. Since Anholt was built five years ago, the cost has been reduced by 30 percent. The windmill park is expected to be ready to deliver the first power between 2017 and 2020. Energinet has promised that the power from the turbines to the transformer on the land-based station will be ready when the turbines begin to produce power. The cost of the landfalls, including submarine cable amounts to around 1.5 billion kroner.

Vestas will supply the turbines. They will be the company’s biggest turbines at 8.3 MW. The turbines will produce 400 MW and can produce power for around 450.000 Danish households.

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danish maritime magazine

The Monitoring Centre in Esbjerg will ensure that Horns Rev 3 is always running smoothly.

Jan Jørgensen says that it won’t be a problem.

- From here, we manage our turbines in Germany, Netherlands, UK, Denmark and Sweden down to the smallest detail. If we can’t fix the problems through our computers here, we will send technicians either by ship or helicopter offshore or by car onshore.

- Maybe a turbine reports a failure, and then we can restart it via remote control. If that fails, we can contact the engineer’s either by mail or text message. The technician can see the error code

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and can then manually determine the direct cause for the failure of the turbine.

LONELY AND DANGEROUS - The people at the monitoring centre follows the technicians step by step, when they go into the turbines at sea. It is purely for safety purposes.

The work in wind turbines is not only lonely but also dangerous. There fore it is important that employees know each other, and that we are continuously informed until the error is corrected and the technician is leaving the turbine.

- If the weather is ok, we can transport the technicians by crew transfer vessel. If the wave height

DAILY NEWS ON WWW.MARITIMEDANMARK.DK

is more than 1 meter to 1.2 meters, we cannot get to the turbines from ships and have to use a helicopter. As a result of very bad weather, employees have had to spend the night there.

In every turbine, there are sleeping bags and a card game. No work is allowed on the turbine during bad weather conditions. If someone is injured, it is extremely difficult to evacuate people!

Here, the monitoring station we analyse the errors: • Turbine error • Temperature error • Vibration error • Electrical error • Hydraulic error

- The information goes into our database, where a site manager can retrieve the information.

Here at the centre, we care about the availability of the turbine. How often are there errors?

In theory, the turbine should be working 97 percent of the time. It is very important that it produces power. The turbine cannot function with constant errors. A stopped turbine is expensive and the more stops, the more expensive it gets. The turbines should have a lifespan of around 25 years.

INDIVIDUAL SOFTWARE DEVELOPERS If there is an error on the network, it is not necessarily the turbines fault. It’s usually external problems that causes the error, such as an underwater cable breaking.

- All of the centres tasks have been developed

by Vattenfall. A team of software developers in the so-called SCADA team at Vattenfall’s office in Kolding have developed systems, which last year showed no fewer than 74.000 alarms and events as a result of different types of errors.

The database gives us an incredible experience working with planning for example new wind farms, says Jan Jørgensen.

FEW PEOPLE, GREAT RESPONSIBILITY Right now, there is plenty to keep an eye out for, both at sea and on land. Denmark’s largest

onshore park, Klim wind farm, in North Jutland, which previously consisted of 31 turbines, is undergoing major modernization. The old turbines were sold and replaced by 22 new 3 MW turbines. It is a new generation of turbines without a gearbox and “Direct Drive” which is controlled electronically.

With its many screens, the monitoring centre looks like an arbitrage department of a major bank. In the daytime, there are two man on duty and only one at night. Following the principle of “We Are Watching You”, the turbines have not a chance to “strike”. A camera on top of the substation on Horns Rev 1 can capture the entire offshore wind farm in a total picture. Horns Rev 1, 160 MW, was put into operation in 2002 and is located 20 km off Blåvands Huk. The cost of the wind farm was around 2.2 billion kroner at that time, and consists of 80 Vestas V80-2.0 MW wind turbines.

With the camera’s help, Esbjerg Centre can focus on every single mill, by zooming in on it and perhaps to determine why a given turbine has an error.

The natural disaster that changed everything The turbines onshore and offshore are here to stay. It took a natural disaster for Europe to think of alternative energy options.

A strong earthquake in Japan sent a devastating tsunami into the country. The wave hit the Fukushima nuclear power plant, which was close to a meltdown. This caused several politicians to go into “shock” including Germany’s Chancellor Angela Merkel. She demanded an end to all nuclear power plants in Germany and thus paved the way for wind power.

The Swedish energy group Vattenfall still owns nuclear power stations in Denmark’s neighbouring countries. Not all are closed! There is still “fights” about who should pay.’

The transition to wind energy is an expensive one. Vattenfalls deal on Horns Rev 3 indicates that the energy supplying companies are finding an economic middle ground compared to the savings the politicians have called for.

The Danish Energy Agency has just announced that the candidates who are pre-qualified to bid for the Kriegers flak, Denmark’s biggest offshore wind farm, to be established between Moen and Bornholm. Vattenfall is on the list.

The final bids must be submitted in November 2016, and the winner is the one who can offer the lowest price in kr. kWh for the first 50,000 full load hours

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danish maritime magazine

ESVAGT SIGN SERVICE OPERATION VESSEL CONTRACT Esvagt is to build a new Service Operation Vessel (SOV) after signing a 10-year contract with MHI Vestas Offshore Wind for servicing the 165 MW Nobelwind project off the Belgian coast.

The contract will further established Esvagt as a leading offshore wind operator.

S

improve efficiency and safety. We therefore see the new contract for a purpose build ship as a clear signal that our Esvagt concept has been a success.

Esvagt has commissioned Norwegian ship designers Havyard to design the purpose build SOV - for the project; a unique type of ship and service concept developed by Esvagt in synergy with MHI Vestas & Havyard Design.

A NATURAL CHOICE - Over the last five years we have been extremely satisfied with the performance of the vessel supplied by Esvagt and it was a natural choice to continue our partnership. The new purpose built vessel has been designed to provide flexibility for the teams who will be providing operational support for different technology types. We are looking forward to seeing the new vessel in service from 2017, says Asger Pedersen, MHI Vestas Senior Director.

The vessel as well as the service concept draws on several years of experience in servicing wind farms further offshore. For the past five years, Esvagt has provided the base for MHI Vestas Offshore Wind technicians servicing the 165 MW Belwind 1 project, and the new contract continues that partnership.

Esvagt Managing Director Søren Nørgaard Thomsen is equally delighted: - We are very pleased that MHI Vestas has decided to enter into a new contract with Esvagt.

MHI Vestas believed in the Esvagt concept from the beginning. During the past 5 years, we have worked closely together to continuously

The vessel will be built at Cemre Shipyard in Turkey and will be delivered and commence service in the second half of 2017.

ituated 50 km off the Belgian coast the Nobelwind project, together with the existing Belwind 1 project, will require a purpose built service operation vessel (SOV) to support the technicians working in the park.

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We are very pleased that MHI Vestas has decided to enter into a new contract with Esvagt.

- Søren Nørgaard Thomsen, CEO, Esvagt

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DAILY NEWS ON WWW.MARITIMEDANMARK.DK

The new purpose build SOV will be 58.5m in length, with a beam of 16.6 m and be able to support up to 22 technicians in single cabins.

It comes equipped with Esvagt’s unique safe transfer boats (ESVAGT STB™) to transfer technicians, tools and spare parts to the turbines.

SOURCE: ESVAGT

THORCO SHIPPING UPGRADES FLEET Thorco Shipping has acquired five large modern tweendeckers. The acquisition is a part of Thorco’s strategy to keep their fleet young and modern to maintain their strong position as a market leader regarding the quality and size of the fleet.

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ccording to CEO and partner in Thorco, Thomas Mikkelsen, the expansion within this segment of 15,000 - 20,000 DWAT has been and is a strategic focus in Thorco, and the five new vessels thus compliments the existing fleet well.

- The new vessels are of a well-known design to Thorco, have high specifications, are modern and more fuel efficient, which all together meet the increasing demands of the industry and optimize our performance and efficiency to serve our clients in the best way, says Thomas Mikkelsen.

within a broad range of industries. Christian Stadil, owner and CEO of Thornico is particularly happy to see this deal go through.

- We firmly believe that when a market is under pressure, when the market is like a closed door, this also equals an open door in terms of the opportunities that will arise, so when an opportunity like this presents itself, we strike, he says.

The acquisition is one in a series of acquisitions in Thorco within recent years. Just one year ago Thorco bought two 20,000 DWAT vesssels, Isadora and Isabella, from Maersk Line, Limited. Moreover, Thorco currently has an ongoing program in Japan with ten newbuildings in the L-class.

The five vessels, respectively from 2010, 2011 and 2012, will replace some of the older tonnage in the fleet. In this context, Thorco will later this year face out four green type vessels which have turned 15 and 16 years old. The new vessels will form a new Thorco R-class and will serve Thorco’s global platform counting 15 offices around the globe. The first ones will be delivered to Thorco mid-December and thereafter at weekly intervals.

Thorco is part of the conglomerate Thornico, consisting of around 120 companies

SOURCE: THORCO

FACTS Class LR, +100 A1 Multi-purpose Dry Cargo Ship, Strengthen for Heavy Cargoes, Certified Container Securing Arrangement, SOLAS II-2 Reg. 19, + LMC UMS Flag HONG KONG Length o.a. (m) 161.5 Length p.p. (m) 153.5 Breadth (m) 25.2 Depth (m) 12.4 Ddesign (m) 8.0 Dscantling (m) 8.6 Deadweight(dwt) scantlin 18,000 Container in holds(TEU) 424 Container on deck (TEU) 624 Container total (TEU) 1048 Cranes (t) 3 x cranes each 80 t – combinable to 160 mts Cargo holds No. 1; 25.5 x 20.4/15.2 m No. 2: 51.75 x 20.4 m No. 3: 25.5 x 20.4 Cargo hatches Weather-tight, folding type, hydraulically operated hatch covers.

Bow thruster 1 x 750 kW Main engine MAN 6S50MC-C MK8 MCR (kW) 9,960 NCR / % MCR 8,964 / 90% RPM 127 Speed (kn) (at NCR) 17.0 Complement (persons) 24 + 4 Suez

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danish maritime magazine

SPECIAL: 2016

BY TINA ALTENBURG

2016 WILL BE A DIFFICULT The challenges that were made clear in the shipping industry this year will continue to influence developments in 2016. This means, that the new year will not be the most exciting year for the shipping industry.

However, there will be anticipated positive growth in the three major segments: container, dry bulk and product tanker.

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ust like 2015 has not been particularly enjoyable for many in the shipping industry, 2016 won’t be either. At least not for the container and bulk segments, whereas product tank actually had a good year this year and are expecting a little growth next year. However, positive growth is expected in all three segments.

CONTAINER SHIPPING The global container volumes only grew by 1.1 percent in the first six months on an annual basis. The entire fleet is expected to grow about seven percent this year – which by far exceeds the growth in demand. At the same time, freight rates have fallen drastically. This was the situation at the end of 2015, and it looks to continue into next year, although the container shipping in 2016 will probably be better than 2015 has been.

- The world economy has not been as strong as we had hoped for. There is too much capacity, which will keep rates at a too low level. We hope that the European market can become stronger in 2016. Supplies will be down to a level below normal. Supplies will be so small that they can be built up again, and this will provide some growth in the container shipping, although demand is basically low, says Peter Sand, chief analyst at BIMCO. He estimates that 2016 will offer a small growth in demand.

The imbalance between supply and demand that has characterized 2015 will continue into 2016.

- Right now there is a significant excess supply.

When the capacity is determined by the ratio between demand and supply, the demand growth has to be higher than the supply for some years to bring overcapacity down. It is a long and tough, but necessary, move to reduce overcapacity and thus restore a sustainable rate level, says Peter Sand.

Jacob Pedersen, analyst at Sydbank, is convinced that the many new ships will cause a deterioration of the market balance, but you have to be careful not to make the situation worse than it is.

- The shipping companies have to do something.

In the last part of 2009 after the financial crisis, we saw that the companies responded by pulling ships out of the market, and earnings actually turned out quite good in 2010. It is somewhat of the same situation we are in now. The shipping companies are pulling ships out, and Maersk Line has indicated that the fleet will not grow as much as planned, he said.

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DAILY NEWS ON WWW.MARITIMEDANMARK.DK

It will take some years before the imbalance in container shipping is gone. The total worldwide backlog currently constitutes of 20 percent of the global fleet.

- It will probably take three or four years before the market has absorbed the many new ships, and that means that it will take three or four years before it everything balances out again, says Jacob Pedersen.

BULK According to Jacob Pedersen, the bulk companies are going to have a considerably better year, when compared with 2015. The dry cargo companies have adjusted to the fact that China has slowed down compared to previous years, while there will not be many new ships on the market.

- With regard to supply, it is an encouragement that there won’t be many new ships. They have realized that the good times are not just around the corner. Bulk rates will be slightly higher in 2016 than in 2015, but it is only enough for the most skilled operators will make it, says Jacob Pedersen.

According to Peter Sand, the dry cargo shipping companies will have to adjust to the fact that market conditions have fundamentally changed.

- In dry bulk cargo, China has been the country that has historically driven the market forward.

But the market has to adjust to the fact that the engine of growth in China has changed. Previously, the growth has been driven by the strong urbanization process and the development of infrastructure, but what will drive growth in China in the future, like in Europe, is the domestic private demand. This year, coal imports to China has been much less than previously (60-70 mt), and that will continue. Coal imports to India have increased by 5-10 million tons, but that is not nearly enough to offset the decline in China, says Peter Sand. He expects a positive demand growth in bulk for next year, but it will be a difficult market.

PRODUCT TANKER Within the product tanker market, 2015 has, as opposed to container and dry cargo, been a fantastic year where the low oil price has given refineries high margins, and demand has been good. –Unfortunately it won’t be quite as amazing in the new year, although the market will continue to grow.

YEAR FOR SHIPPING -The high margins from refineries have caused large stockpile built up and now they have be brought down.

However, we expect a positive demand growth in product tank next year, says Peter Sand. He elaborates that the price drop in oil from about $ 100 to about $ 50 per barrel, affected the companies positively, but the momentum it has given to the market, is incorporated now and won’t continue to affect the market.

Jacob Pedersen essentially has the same view.

No analysts seriously believe that the oil price will go up very much in 2016, but the product tanker will still do very well compared to both container and bulk. That is the unanimous verdict of what is in store for next year.

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- It’s difficult to see that the market would continue to be as good as it has been this year. There will be more ships in the market, but the rate level will be on a level where the companies can still make a living. This year has been an exceptional situation because of the sharp drop in oil prices, but now the market has incorporated the price of oil, he says.

It will probably take three or four years before the market has absorbed the many new ships.

- Jacob Pedersen, Chief Analyst, Sydbank

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danish maritime magazine

TEMA: KRYSTAL SPECIAL: 2016

BY TINA ALTENBURG

WORST POSSIBLE TIMING FOR OIL AND GAS The oil and gas industry in the North Sea is currently being pressured hard due to the low oil price. No one believes that oil prices will increase significantly next year, so the pressure on operators only becomes bigger. This affects the companies working in the offshore oil and gas industry.

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DAILY NEWS ON WWW.MARITIMEDANMARK.DK

perators in the offshore oil and gas are already experiencing a lot of pressure and have to implement cost reductions, which are passed on to the many suppliers that provide components and service for the sector. The pressure is also affecting the shipping companies engaged in offshore oil and gas.

- The expectations for the price of oil next year will remain the same or increase marginally.

Next year there will be a dramatic decrease in activity in the Danish sector and the timing couldn’t be worse. The installations are old and the oil that could be relatively easily gathered is now gone, Morten Basse Jensen, CEO of the knowledge center and innovation network Offshoreenergy.dk, explains. He adds that the oil and gas that has not yet been gathered, requires some expensive investments, which the current low oil price will make impossible.

- The oil and gas industry is taking hits from all sides simultaneously, so it will be a tough year next year. Of course we are all working together to address the challenges that lay ahead, says Morten Basse Jensen.

OFFSHORE WIND IS A GROWING MARKET Morten Basse Jensen encourages the companies to venture out to other geographic areas where conditions are better, and he also encourages them to invest more in offshore wind, if they have ships that can be used in that industry.

- The offshore wind industry looks fairly reasonable. From the middle of 2016, installations will

increase and the service is already going up.

Therefore it makes sense to enter the wind industry, if the companies haven’t already, he said.

This market however, won’t be entirely without problems. Morten Basse Jensen predicts that the market for offshore wind will be affected by consolidations for the years to come, where small companies will have a difficult time if they don’t let themselves get bought up or acquires a strategic partner.

- The tasks become bigger, the components are bigger, and the degree of complexity becomes greater all the time. This particularly applies to the transport and logistics area. It might be a growing market, but a market in a strong consolidation, he said.

STRONGER COMPETITION The offshore wind market is changing and the government support for wind farms has dropped significantly. When the Anholt offshore wind farm was opened in 2013, the government supported with 1.05 kroner per. kilowatt-hour.

This has now decreased to 77 kr. kilowatt-hour.

It is also a market where competition is getting more intense. When the Anholt offshore wind farm was put out to tender, there was only one bidder. Compared to the tender for Kriegers Flak where there were seven bidders.

The price drop is going to affect everyone throughout the supply chain. The companies that have installation vessels and service vessels, will find that they will have to work for other rates than they have been accustomed to, and under different conditions. It is indeed a growing market, but it is getting more competitive, says Morten Basse Jensen, adding that the market is situated outside Denmark. The major growth opportunities in offshore wind are no longer in Denmark.

CUTTING COSTS IS THE WAY FORWARD Morten Basse Jensen adds that one of the main ways to get out of this situation is cost savings, which is one of Offshoreenergy.dk’s main focus areas. The network has launched a number of initiatives to help the Danish sector obtain these savings. Among other things, two Cost Reduction Forums have been created, one for oil & gas and one for offshorewind, where representatives from across the industry can optimize processes, workflows and adopt common standards, together.

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- It is very positive that the Danish offshore industry has realized that they have to work together to reduce costs - even if it means that some companies will lose money introducing new initiatives.

- There will be more competition in the market and the price of offshore wind is going to decrease. It is a process that has already started.

The oil and gas industry is taking hits from all sides simultaneously.

- Morten Basse Jensen, CEO, Offshoreenergy.dk

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danish maritime magazine

SPECIAL: 2016

BY TINA ALTENBURG

A GOOD YEAR IN STORE FOR THE MARITIME INDUSTRY The industry association Danish Maritime is aware of the fact, that a large part of the shipping industry is hard hit by the current crisis. But retrofit, upgrades and service will fill the order books of the maritime industries in 2016

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he maritime industries have felt that their customers, the shipping companies, have been challenged lately and that there has been a decline in newbuilding orders. But according to the industry association Danish Maritime, there will be a turning point in the near future and things will be reasonably good in the second half of 2016 and in 2017. With that being said, Danish Maritime expects that 2016 will be a busy year for the maritime industries, as newbuilding orders are only part of the industry.

- There is the entire retrofit and upgrade industry, where there is increasing activity and the introduction of new regulations are helping danish maritime magazine

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boost demand. This applies to green technology and safety products. We expect that the progress here outweighs the slightly lower newbuilding activity, says Jenny N. Braat, CEO of Danish Maritime.

SERVICING The construction activities have not stopped completely. In the European market there will be a lot of specialized vessels, for example pelagic fishing vessels and research vessels, but not offshore vessels.

- Then there is all the servicing of the vessels. We are experiencing a growing demand for skilled

DAILY NEWS ON WWW.MARITIMEDANMARK.DK

people in service companies. We are expecting that the servicing of the existing fleet will become increasingly important, and the existing fleet is larger than ever, says Jenny N. Braat.

She adds that the very reason that Danish Maritime would like the maritime fitter scheme approved, is so that maintenance work can be carried out from Denmark. A maritime fitter scheme would give tax exemption to 3.000 Danish ship fitters. However, it has been rejected by the government so far and is not included in the financial budget for 2016.

Posidonia 6 -10 June 2016

Metropolitan Expo, Athens Greece

enter

the multi-billion market The International Shipping Exhibition

posidonia@posidonia-events.com

www.posidonia-events.com

BY TINA ALTENBURG

WORLD MARITIME UNIVERSITY GRADUATION World Maritime University’s Chancellor and former Secretary-General of the International Maritime Organization, Mr. Koji Sekimizu, has conferred postgraduate degrees on the World Maritime University’s Class of 2015.

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n total, there were 202 graduates in the Class of 2015 including the M.Sc. programmes in Malmö, and Dalian and Shanghai, as well as the the distance-learning Postgraduate Diploma graduates. Overall, the graduates represented over 40 countries.

Mr. Lim remarked that the WMU graduation ceremony is “one of the most important events in the world maritime community...I have no hesitation to state that graduating from WMU was the foundation of my future career, and was one of the most important occasions in my life.”

The Guest of Honour was Mr. Ki-tack Lim, the new Secretary-General, International Maritime Organization. Mr. Lim is an alumnus (M.Sc. 1991 MSA(N)) and the first Chancellor and first IMO Secretary General, to hold an MSc degree from the University.

Mr. Lim went on to highlight the important role WMU graduates play at IMO and in the global maritime community and the important role WMU plays in opening dialogue and closing the gap between countries of different economic development.

DAILY NEWS ON WWW.MARITIMEDANMARK.DK

HARBOUR MASTER’S BUILDING Malmö Mayor and Chairman of the City Council, Mr. Kent Andersson, noted that the historic Harbour Master’s Building has been returned to a maritime use as the new home of the University which is “not only of importance to the people of Malmö and Sweden, but to the entire world as WMU offers relevant and forward-looking programmes that address the UN 2030 Global Goals.”

The University has entered a new era with significant milestones over the past to years including the celebration of the 30th anniversary of the University in 2013. Further, in the same year, IMO Council approved to launch a study on the sustainability of the University.

Milestones in 2015 noted by the Chancellor in his speech, included this year’s World Maritime Day theme of Maritime Education & Training, the appointment of Dr. Cleopatra Doumbia-Henry

as President, inauguration of the new campus, and completion of the sustainability study report on WMU which was presented to IMO Council and has provided new strategic directions for the University including the creation of an endowment fund to ensure the future of WMU.

thing and rely on your own judgment, always aiming for the top, being ambitious for the sake of others rather than your own aggrandizement, and remembering that that ethics and morals are the most important qualification for any leader, as well as the ability to work with people.

FUTURE LEADERS World Maritime University’s Chancellor and former Secretary-General of the International Maritime Organization, Mr. Koji Sekimizu, emphasized the prominent reputation of WMU highlighting the result of the election of WMU alumnus, Mr. Ki-tack LIM, as Secretary-General as well as the multiple candidates who were WMU alumni, “this a clear testament of the value of the university as an institution for generating future leaders in the maritime community.”

Before the conferring of degrees on the graduates, Mr. Sekimizu conferred the degree of Doctor of Science in Maritime Affairs, honoris causa on Dr. Darrell Fisher for his exceptional service to the University from 1993 to 2014 as a Visiting Professor. Throughout his years at WMU, Dr. Fisher taught courses focused on maritime education and training, particularly the evaluation of teaching and curricula for maritime instructors.

In addressing the graduates, Chancellor Sekimizu put forth five points to strive for including discipline, having the courage to do the right

Additional honorary awards included the award of Honorary Professor to Dr. Alastair Couper for his distinguished and out-

standing service to WMU, and the award of Outstanding Alumnus was made to Captain Suat Hayri Aka for his outstanding service to the maritime community.

STUDENT COUNCIL The final address was made by Ms. Hyun Lee, President of the Student Council. In particular Ms. Lee noted the influence that WMU has on its graduates by exemplifying the spirit of the United Nations, “our cultural diversity became our strength over the last 14 months. Within our different backgrounds, we learned how to live in harmony and with mutual respect…students form 39 countries became one WMU family.”

During the ceremony, the annual student awards were announced. The Chancellor’s Medal for Academic Excellence for the M.Sc. in Maritime Affairs 2015 in Malmö was awarded to Mr. Mukund Gujar from India, and for the Dalian M.Sc. Programme to Mr. Yanze Sun from China, and for the Shanghai M.Sc. Programme to Mr. Amit Sanwal from India.

BY TINA ALTENBURG

WMU AND The Danish shipowner, Maersk Line, has partnered with the World Maritime University in a unique higher education project on corruption awareness. The corruption awareness project - known as CORA - is co-funded by the A.P. Moller Support Fund and Maersk Line.

The Pierre Léonard Prize for the Best Female Student was awarded to Ms. Philippa Reid from the Republic of South Africa. Ms. Fatoumatta Cassama from Gambia received the Lloyd´s Maritime Academy Dissertation Prize and the Lloyd’s Maritime Academy Prize was awarded to Mr. Anton Kulchytskyy from Ukraine. The C. P. Srivastava Award for International Fellowship was awarded to Ms. Maki Tominaga from Japan.

This year’s graduation ceremony brings the number of WMU graduates to 4,116 from 166 countries.

SOURCE: WORLD MARITIME UNIVERSITY

About WMU The World Maritime University (WMU) in Malmö, Sweden is a postgraduate maritime university founded in 1983 by the International Maritime Organization (IMO), a specialized agency of the United Nations. The aim of WMU is to further enhance the objectives and goals of IMO and IMO member states around the world through education, research, and capacity building to ensure safe, secure, and efficient shipping on clean oceans. danish maritime magazine

/ PAGE 18

DAILY NEWS ON WWW.MARITIMEDANMARK.DK

MAERSK LINE JOIN FORCES he joint initiative with Maersk Line responds directly to the UN Sustainable Development Goal 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

As part of the CORA project, WMU will design, test, and deliver a Master’s level course focused on business integrity issues and corruption awareness, both of which are growing areas of interest for shipowners and the International Maritime Organization (IMO).

- We are delighted to mark the United Nations’ International Anti-Corruption Day today by announcing a new initiative, which harnesses the expertise of both the World Maritime University and Maersk Line to raise awareness of corruption, says WMU’s President, Dr Cleopatra Doumbia-Henry.

FIVE MODULES The course contains five modules: corruption awareness, maritime security and safety, leadership, change and communication, negotiation techniques and a mentoring module where WMU and Maersk representatives will provide mentoring for selected candidates after they return to their home countries. In addition to supporting the development of the course, CORA provides a full fellowship for a student to join the WMU MSc programme in Malmö.

Case studies provided by Maersk Line will support the project, as will the experiences of WMU faculty who will be sailing on Maersk ships in order to acquire firsthand knowledge regarding best practices for both public and private actors in the shipping industry. Ms. Kristin Berglund, Senior Legal Advisor for Maersk Line, will work with the WMU team led by Principal Investigator, Assistant Professor Lisa L. Froholdt.

The WMU CORA team is enthusiastic about the unique nature of this course with its mentoring component as well as the significant contribution that will be made by Maersk Line. Dr. Froholdt says: - Business integrity and corruption awareness is a global issue. I am grateful to Maersk for this opportunity and for the fact that Maersk Line has chosen to work with WMU on this significant project.

Maersk Line Chief Operating Officer Soren Toft states: - Corruption is a real issue in many parts of the world, and one that we face daily in the shipping industry. Maersk has a zero-tolerance policy on fraud and corruption, but the battle is not won overnight and requires that we work together. As the largest container carrier we have an obligation to help resolve the issue more widely, and by partnering with WMU we believe we can take another step towards a maritime industry free of corruption.

‘

T

The project was launched on 15 December 2015 and is expected to conclude on 30 September 2016.

SOURCE: WMU

Business integrity and corruption awareness is a global issue.

- Lisa L. Froholdt, Principal Investigator, Assistant Professor, WMU

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danish maritime magazine

MAERSK TRAINING OFFICIALLY OPENS HOUSTON FACILITY With their new state-of-the-art simulation simulation facility in Houston, Texas, Maersk Training is setting a new benchmark in the industry for advanced operational simulation training. Maersk has strong focus on human factor elements alongside operational performance.

- Our Houston simulation facility has always been a big cornerstone of Maersk Training’s global growth strategy. We want to create a step-change in the level of competence in the oil & gas industry as well as in the way competence is developed and improved, by influencing how the industry work with safety and operational performance, says Claus Bihl, CEO of Maersk Training.

The advanced simulation complex allows oil & gas companies to test planned operations in a life-like but safe simulated environment, making sure that crews are optimally prepared before they engage in the actual operation, to increase safety, save time and be better prepared to handle unexpected events.

The hands-on, scenario-based training goes well beyond traditional classroom training. danish maritime magazine

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It allows teams to practice events and joint procedures together as an integrated unit, rather than as individual contributors.

- Our main focus will be on operational simulation and integrating Human Factors, including teamwork, procedural discipline, communication, decision-making and situational awareness – all of this with the aim to safeguard and improve safety and productivity, says Claus Bihl.

FIVE-YEAR GLOBAL AGREEMENT Earlier this year BP signed a five-year global agreement with Maersk to provide additional advanced training for their offshore rig crews - This facility represents an important investment in our people and in our future, says Gary Jones, head of BP’s Global Wells Organization.

DAILY NEWS ON WWW.MARITIMEDANMARK.DK

- Our safety and operational performance depends on high-functioning, integrated teams.

These programs will continue to develop the talents of BP’s global offshore workforce and the contractors we work with as part of our commitment to safe and reliable operations.

Maersk Training is the industry’s leading provider of advanced simulation-based training in the oil & gas industry. The company has since 1978 grown from mainly providing training for companies within the A. P. Moller - Maersk Group to now servicing many companies within the maritime, wind and oil & energy industries.

The company carries out training in 10 global facilities and counting more than 100,000 mandays per year.

SOURCE: MAERSK TRAINING

FIRST MCI CONTAINERS FROM CHILE Maersk Container Industry has begun delivering refrigerated containers and Star Cool refrigeration units from its new production facility in San Antonio, Chile. More than 2,000 40ft high cube Star Cool containers were recently ordered by and partly delivered to international carriers’ CMA CGM, Maersk Line and Sealand.

R

eefer production in Chile has the potential to achieve vast efficiencies and a reduced environmental footprint for the industry because shipment of empty reefer containers from elsewhere can now be reduced.

- For the first time ever, refrigerated containers made in Chile are going straight from the factory to local farms to be loaded with fresh produce. Perishable foods are a key market for shippers and we are constantly looking for ways to provide them with competitive

efficient and sustainable supply chain for the shipment of fresh produce from the West Coast of South America.

such close access to MCI’s advanced refrigeration technology can become a catalyst for South American fresh produce exports.

SEASONAL DEFICIT Seabury, the international shipping and transportation analyst, predicted the 2015 seasonal deficit for Chile, Colombia, Ecuador and Peru to reach a record high of more than 300,000 reefers.

Of these, 110,000 reefers need to go to Chile.

- To keep cargos fresh over long distances, extend shelf life and not least reduce food waste, we offer various technologies including Controlled Atmosphere (CA) cooling technology at our factories in Chile and China, two reeferdemanding regions in the world, Johannsen explains.

advantages like this, says Soren Johannsen, Chief Commercial Officer at MCI.

Depending on time, seasonality and service network, freight costs for repositioning empty reefers to Chile alone varies between 1,0002,000 dollar per reefer container.

- We are very excited about this milestone at MCI. It marks the beginning of a new and more

Located in one of the regions with the highest demand for refrigerated food transportation,

DAILY NEWS ON WWW.MARITIMEDANMARK.DK

SOURCE: MCI

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danish maritime magazine

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