Dmm 3 16 by Danish Maritime Fair

DANISH

MARITIME MAGAZINE May 2016

No. 3 DKK 49,50

NEW SHIP Stena Weco Impulse

VESSEL DESIGN Container feeders

DANISH MARITIME FAIR Its all about relations

DANISH MARITIME MAGAZINE 3-2016

TOP STORY

4 HOW SHIPPING COMPANIES HEDGE RISKS Active risk management plays a key role in shipping companies strategy to ensure sound earnings and financial flexibility also in fluctuating markets. The Executive Management is responsible for identifying considerable risks and developing the Company’s risk management.

16 FUTURE TRANSPORT SYSTEMS FOR EUROPEAN PORTS

Discussions surrounding future transport systems were in focus when Mr Pat Cox, European Coordinator for the ScanMed Core Network Corridor, visited Copenhagen Malmö Port last month.

SVITZER ENTERS PORT OF MONTREAL The Danish shipping company Svitzer has established a harbour towage service in the Port of Montreal providing shipdocking, escort and ice-breaking services in response to customer demand for alternatives.

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IT´S ALL ABOUT RELATIONS That is the theme of this year’s Danish Maritime Fair, where the focus has been shifted from products to relations. With experiences from the past two years, the team behind the Danish Maritime Fair has analyzed different concepts, both with the help of external consultants specializing in B2B events but also with visits to international fairs and events.

PIONEERING CONTAINER FEEDER VESSEL DESIGNS The Danish naval architect company Knud E. Hansen has developed a number of pioneering container feeder vessel designs. Each of the designs presents a series of innovations as part of a solution tailored to specific requirements.

FIRST AUTOMATED OFFSHORE AQUACULTURE FACILITY The Norwegian Ministry of Trade and Fisheries has approved Norway’s first development concession enabling Ocean Farming, supported by Kongsberg Maritime, to build the world’s first automated ‘exposed’ aquaculture facility.

WÄRTSILÄ GAS SOLUTION FOR TWO CANADIAN FERRIES Wärtsilä has been awarded the contract by Gdańsk Shiprepair Yard Remontowa, to supply a comprehensive scope of engines, propulsion machinery, integrated automation systems, and gas handling systems required for the mid-life upgrading of two RoPax ferries and their conversion to operate on LNG fuel.

WORKS ON HOSPITAL SHIP IN HIS SPARE TIME For 29-year-old Danish Chief Officer Milan R. Falsing, it makes sense to work for Norden on the 7 seas. But it also makes sense for him to spend his spare time sailing with a hospital ship along the African west coast, where there is an almost unquenchable need for doctors, nurses and other healthcare workers who can treat people with large, serious illnesses.

BEST YEAR EVER FOR THE SUPERYACHT INDUSTRY Key players in the superyacht industry including superyacht brokers and shipyards have revealed a positive start to 2016 with strong sales, continued growth and optimism.

Stena has signed a contract for four new RoPax ferries with planned delivery during 2019 and 2020, with an option for another four vessels. The vessels will be built by AVIC Shipyard in China, and used within Stena Lines route network in Northern Europe.

ABB TO ELECTRIFY NORWEGIAN HYBRID CAR FERRY ABB will supply the power system for a hybrid car ferry serving an important passenger route in Norway. Designed with flexibility in mind, the vessel will run as a hybrid but can be modified to run as a full electric ferry with shore charging system.

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

STENA ORDERS FOUR NEW ROPAX FERRIES

EDITOR

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

MANAGEMENT

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

LAYOUT

May 2016

No. 3

DKK 49,50

PUBLISHER

Maritime Danmark ApS Esplanaden 30.4 1263 Copenhagen K Phone: +45 23 66 28 99

ADS

Phone +45 70 20 41 55 sales@maritimedanmark.dk

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NEW SHIP Stena Weco Impulse

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VESSEL DESIGN Container feeders

Next issue: 24th June 2016

DANISH MARITIME FAIR Its all about relations

HOW SHIPPING COMPANIES HEDGE Active risk management plays a key role in shipping companies strategy to ensure sound earnings and financial flexibility also in fluctuating markets. The Executive Management is responsible for identifying considerable risks and developing the Company’s risk management.

• TOTAL LOSS The risks of total loss are minimised by operating a modern fleet and by investing in vessel maintenance and staff awareness of both external and internal environments. In general, an increase in operational risks is seen in the market due to recent years’ poor market conditions, which for example cause some ship owners to economise on maintenance. Norden therefore has increased focus on the condition of vessels in connection with shortterm charters. FLUCTUATIONS IN FREIGHT RATES Purchasing and chartering vessels imply a risk as Norden assumes financial liability in expectation of generating earnings which are dependent on the freight market. To control the uncertainty relating to earnings, future open ship days are covered by cargo contracts, T/C contracts and

Forward Freight Agreements (FFAs) to the extent Management finds it attractive. Mid-February, coverage for 2016 constituted 57% and 24% for Dry Cargo and Tankers, respectively. CREDIT RISKS Norden reduces its credit risks through systematic credit assessment of counterparties and through regular monitoring of their credit ratings. For this purpose, the Company uses own analyses based on external credit rating agencies and publicly available information. Each analysis results in an internal rating, which is subsequently used for determining the allowed scope of the commitment. In connection with newbuilding contracting, it is assessed whether the credit risk in relation to prepayments to the yard should be reduced through repayment guarantees issued by banks with good credit ratings. PIRACY The operation of vessels is exposed to a number of risks. The safety of the crew is ensured by means of updated procedures, heightened focus and repeated drills. With regard to handling the threat of piracy, the Norden follows the so-called Best Management Practices (BMP), drawn up by global shipping organisations and military authorities. During 2015, Norden experienced 1 attempted robbery and 3 attempted thefts on-board vessels. The attempted robbery took place in Indonesia and was stopped as soon as it was discovered. 3 times during the year,

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- You cannot do business without taking risks. It will always be that way. But you can do a lot to avoid or reduce the risks you don’t want. Norden does that. We wish to take risks within shipping, but many of the other risks that follow – for example fluctuations in oil prices or currencies – we hedge those to the largest extent possible. And even the risks that we readily take within shipping, we try to actively manage to our advantage for example by having high contract coverage and good procedures, says Martin Badsted, CFO at Norden. Below you can see how the Danish shipping company Norden hedges the most significant risks.

You can do a lot to avoid or reduce the risks you don’t want - Martin Badsted, CFO, Norden

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perpetrators have crept on board vessels that were either lying at anchor or off the quay, and have attempted to steal minor items from the deck. No crew members suffered any injury at the incidents BUNKER PRICE RISK Norden’s largest variable cost is fuel in the form of bunkers, and the total costs of the Company will therefore depend on the market price for bunkers. The Company uses bunker swaps to hedge future consumption of bunkers when entering into cargo contracts in case there is no bunker adjustment clause in the agreement. In connection with charter agreements, Norden has a bunker price risk in relation to the quantity of bunkers with which the vessel must be redelivered. Due to the uncertainty of the size of this quantity, this exposure is not hedged. OIL SPILLS In terms of value, the most material events are oil spills and total loss (lost value of owned vessels, purchase options and charter parties). The Company covers these risks by taking out insurances with recognised international insurance companies. Fluctuations in ship values Changes in ship values have a significant impact on the value of Norden, both di-

RISKS rectly on the value of the owned fleet and indirectly through the value of purchase options. Norden Norden is continuously focusing on how to optimise the portfolio of owned vessels; be it in relation to ongoing replacement of older vessels with newer vessels or newbuildings, or fuel efficiency improvement of the current fleet. OTHER OPERATIONAL RISKS In a global company like Norden, it is crucial that the Companyâ&#x20AC;&#x2122;s IT systems are always available. The IT Department has established a technical emergency capacity with an IT environment distributed on 2 locations with mirrored critical systems. Also, the Company has established an IT Disaster Recovery Plan involving the entire organisation and supporting the IT Department in setting up emergency operations as soon as possible after a disaster

SOURCE: NORDEN NEWS SPRING 2016

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STENA WECO IMPULSE DELIVERED The chemical and product tanker Stena Weco Impulse, which is jointly owned on a 50-50 basis by Stena Bulk and the Danish Weco Group, has been delivered from the Chinese shipyard CSSC OME in Guangzhou. The Stena Weco Impulse, an IMOIIMAX tanker, is the sixth in a series of 13 vessels ordered by Stena Bulk. - The Stena Weco Impulse is the first of two vessels, which we will jointly own with the Weco Group, and this will strengthen still further our very successful collaboration, says Erik HĂĽnell, President and CEO Stena Bulk AB / CEO Stena Weco. - Together with Stena Bulk, we have built up a fleet of more than 60 vessels, all of which sail in our advanced logistic system. The fact that we are now focusing on joint ownership is yet another step towards more far-reaching collaboration, says Johan Wedell Wedellsborg, Chairman of the Board, Weco Group.

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IMOIIMAX TANKER Stena Weco Impulse is equipped with 18 tanks, each with a capacity of 3,000 m3, and can carry both vegetable oils and chemicals such as oil and petroleum products. Thanks to their innovative technical design, the IMOIIMAX tankers have extra large cargo flexibility, high safety and low fuel consumption. The IMOIIMAX tanker is equivalent in size to a 50,000 DWT MR tanker. - The IMOIIMAX model fits in very well with how we operate due to its extra large cargo flexibility. We are convinced that the vessels will play an important role in our joint fleet,

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says Johnny SchmĂ¸lker, CEO Weco Shipping / COO Stena Weco. The first five IMOIIMAX tankers have been delivered by January this year. Delivery of the remaining eight vessels will be completed by the end of 2017. Additionally, there is an option on a further two vessels. Stena Teknik and the shipyard CSSC OME were jointly responsible for the technical development of the IMOIIMAX concept. The innovative design of the IMOIIMAX tankers means that, among other things, their fuel consumption

at service speed is 10-20% lower than that of equivalent vessels. Some of the technical solutions that result in more efficient energy consumption and greater logistic flexibility: MAIN ENGINE AUTO-TUNING With an auto-tuning system, the combustion process in each cylinder is continuously and automatically controlled for optimal main engine performance. MORE EFFICIENT BOILER WITH RECOVERY FROM MULTIPLE HEAT SOURCES The vessel is also equipped with a so-called exhaust gas multi-inlet composite boiler, one of the very first to be installed. This boiler not only recovers energy from the main engineâ&#x20AC;&#x2122;s exhaust gas but also recovers the exhaust gas energy from the auxiliary engines. In addition, the boiler has an oil-fired section that can be used in port, thus avoiding the need to run the larger oil-fired boilers to heat the vessel. This,

together with main engine auto-tuning and part-load optimization of the auxiliary engines, will result in very efficient energy consumption. Recovery of propeller energy loss All propellers lose some of the energy input in the rotating water behind the propeller. With the IMOIIMAX, the energy loss is recovered by fitting a Hub Vortex Absorbing Fin. AERODYNAMIC DESIGN OF THE ACCOMMODATION AND BRIDGE In heavy weather, wind resistance can be significant. The streamlined design of the accommodation and the bridge means that the IMOIIMAX is less affected by wind resistance than other similar vessels. All cargo tanks are designed to accept any type of cargo the vessel can transport

EFFECTIVE TANK-CLEANSING SYSTEM The flushing system installed ensures that the cleansing process is optimised and since four tanks at a time can be flushed, the time between discharge and loading can be minimized. All the thirteen IMOIIMAX tankers will sail in Stena Wecoâ&#x20AC;&#x2122;s global logistics system, which currently employs more than 60 vessels. The naming ceremony will take place in Copenhagen in June 2016. Stena Weco, which was established at the beginning of 2011, is jointly owned (50-50) by the tanker shipping company Stena Bulk and Danish Weco Group. The shipping company, which specialises in the transportation of vegetable oils and chemicals, is one of the largest global carriers. Its goal is to be a market-leading player in the MR tanker segment.

An IMOIIMAX has 18 cargo tanks. They are all the same and are designed to hold a maximum of 3,000 m3, i.e. the maximum volume permitted for the special-type cargoes the ship can transport.

FAKTA Technical data for an IMOIIMAX tanker: Length: 183 metres beam: 32 metres deadweight: 50,000 tons

SOURCE: STENA WECO

BY MARTIN UHLENFELDT

IT´S ALL ABOUT

RELATIONS

That is the theme of this year’s Danish Maritime Fair, where the focus has been shifted from products to relations. With experiences from the past two years, the team behind the Danish Maritime Fair has analyzed different concepts, both with the help of external consultants specializing in B2B events but also with visits to international fairs and events. The purpose of this has been to find the perfect formula to create a venue for the Danish maritime industry and those who work closely with us, or would like to in the future. The idea of creating a meeting place for the industry has been brewing for a while, but it wasn’t until the cooperation between MARPRO and Maritime Denmark, that a foundation was created for a project of this magnitude. It was in the autumn of 2013, after a visit to Danfish, where several of the exhibitors expressed a need for an alternative to Danfish, as their marketing in the fishing industry was rapidly declining. Several of them also expressed a slight frustration about the fact that the Danish branch had to meet in Oslo for a maritime fair that also happens to be very expensive. After a series of conversations with top officials from several major equipment suppliers, the decision was made, that it was time to create a Danish event. A rough draft of a business plan was prepared, planned to launch in the spring of 2015. This provided enough time to work everything out, time to obtain agreements with key partners. In the spring of 2014, it was politically decided to allocate funds in order to strengthen the Danish maritime industry. The idea was, that a concept with a weeklong focus on the Danish maritime industry, would put The Blue Denmark on the global map, increase exports and create more jobs in the industry. Although it resulted in very little time to develop a project, it was an opportunity that could not be missed. It was decided to put the first Danish Maritime Fair event in the same week as the Danish Maritime Days - in week 41. The timing, seen with the Danish equipment supplier’s eyes, was really bad, as week 41 was only 1 month after the largest and most important event of them all in the global maritime industry, SMM in Hamburg. There was no time for big ideas and partnerships, and the most important thing in the eyes

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of the organizers, were getting started and planting some seeds. However, things moved along very quickly and after just 7 months, an event with 180 exhibitors, numerous conferences and about 4.000 visitors were a reality. The general model for the event was the international B2B trade fairs, were a lot of expertise was obtained, which helped build the fair in 2015. The largest strategic gamble was a relocation from the Bella Center to the more rustic and original venue, Lokomotivværkstedet in the center of Copenhagen. The move was motivated partly by a desire to move the fair even closer to the ship owners and also to create a fair with a more personal atmosphere.

is going to be the main focus. The strategic details that were not in place last year due to the timeframe are now in place.

Unfortunately, the Danish Maritime Days 2015 was during the same week as Danfish, leaving both visitors and exhibitors interested in both things, in a dilemma. In spite of that, the fair grew and ended up with 4550 visitors, 218 exhibitors and a large conference program.

The three organizations behind Danish Maritime Days are now all deeply involved in DMF. The Danish Maritime Authority will be there with a 21m2 large stand and the Danish Shipowners Association are organizing a 84m2 large Shipowners Lounge where they will plan different events. Last but not least, Danish Maritime will once again host the conference Danish Maritime Technology which has moved from 120 to 260 delegates.

Everything went extremely fast from the first idea was born, and through a lot of questionnaires that were returned from both exhibitors and visitors, it was time to evaluate the different aspects of the fair, especially the timing.

On Wednesday, the second day of the Fair, the aim is to create the largest maritime dinner in the history of Denmark, where the plan is to bring 480 people together for entertainment, good food and drinks.

Organizationally, it was clear that there was a need for a strong organization for the project and it was decided that MARPRO transferred all its activities to Maritime Denmark and Jakob le Fevre became a co-owner of Maritime Denmark ApS.

At the fair, exhibitors and key people can network in an exhibitor lounge with full board and there is currently a lot of work going towards creating a B2B speed dating event and attract a large port conference.

The result of the evaluation is a Danish Maritime Fair 2016, where networking and both creating new and maintaining existing relationships

DAILY NEWS ON WWW.MARITIMEDANMARK.DK

From the very first year, the Danish Ports have been an important partner of DMF and to the question why Danish Ports has chosen to support the project and become partners, Bjarne

Danish Maritime Fair is also something that, going forward, will position Denmark in the blue growth agenda. Løf Henriksen, Enterprise Advisor from Danish Port answers: “Danish Ports support the Danish Maritime Fair because of the event’s function as a platform for spreading knowledge and creating opportunities for knowledge sharing and professional networking”. How does Danish Ports fell they can benefit from being present at the fair? “Danish Ports have a direct focus on the ports role as a key link in the transport chain. The daily challenges in world trade requires a strong network and that you understand the potential of close cooperation” Bjarne Løf Henriksen replied. Is there any long-term potential for your members, to have a major international maritime event on Danish soil? “Danish Ports sees a potential in strengthening the community between the various players in the industry, but the Danish Maritime Fair is also something that, going forward, will position Denmark in the blue growth agenda”. Countless meetings have been held in the process behind the vision of the DMF. Within the last year, the team behind the DMF has participated in Europort, Ajour, Digital Ship,

- Bjarne Løf Henriksen, Enterprise Advisor, Danish Ports

APM Singapore and Sea Japan, each event with its own touch and profile. The big question is now, which direction DMF should move in? In conversations with all the key decision makers that make up the Danish maritime industry, there are three clear trends: In the future, a big maritime event in Denmark should only take place every 2 years. If there is one every year, it will drain the industry’s resources and won’t provide the necessary time to set up a big event. Seen with maritime glasses, Denmark is “Shipowners Territory” and therefore the event must contain elements of professional and also entertainment value, which will attract shipping company representatives. The timing of DMF must be aligned with the international event calendar, so as not to conflict with some of the major events both in Denmark and abroad. Jakob le Fevre, who is responsible for the Danish Maritime Fair adds:

“Blue Denmark has a unique opportunity to create an event that will attract people from around the world. It will create attention towards the Danish maritime industry and with an event like that on Danish soil, we will be able to work together to find potential synergies and create new businesses together. We will create a more direct path from the investor to the entrepreneur and ultimately strengthen the Blue Denmark in a competitive way. This could also help increase exports and consequently create more jobs”. “The only requirement is that everyone that have shares in the joint project called “Blue Denmark” does not focus 100% on what they can get out of it, at least not in the beginning, but instead accept to invest in a common goal whose outcome will be beneficial to the entire industry” said Jakob le Fevre. Danish Maritime Fair will be held from October 25th to 27th 2016. Read more at www.danishmaritimefair.dk

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THE LARGEST MARITIME EVENT IN DENMARK 25th - 27th OCTOBER 2016

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and get direct access to the most important players in the business BOOK YOUR STAND NOW! BOOKING@DANISHMARITIMEFAIR.DK

vitzer has mobilized two ice-class tugs to the Port of Montreal, Svitzer Nerthus and Svitzer Njal with a third tug arriving during mid-April. The tugs are 30m ASD tugs with 60tBP and 5000HP and were built at the East Isle Shipyard in Prince Edward Island in 2009.

operation in the country during the past few years. Montreal represents a great opportunity for our continued expansion and we have experienced a strong demand from our local and global customer-base to provide services within the St. Lawrence River.

Following five years of service in Scandinavia, the vessels were mobilized to Canada for Svitzerâ&#x20AC;&#x2122;s northern operation in Baffin Island. In addition, Svitzer will mobilize additional tugs during the next 12-18 months providing full-year service in the St. Lawrence River.

Jakob Abrahamsen, General Manager, Svitzer Canada summarizes the importance of the entry into the primary container shipping hub in Central Canada.

Martin Helweg, Managing Director of Svitzer Americas, highlights the significance of the entry. - Canada is one of our key growth markets in the Americas and we have expanded our

- Establishing our presence in the Port of Montreal is not only a key milestone for Svitzer Canada but as well for the overall harbour towage market in Canada. The feedback from our customers has been remarkable as they are demanding towage alternatives and we will continue focus our efforts on expanding our footprint wherever our customers request

operationally reliable and commercially transparent harbour towage service. Since 1833, Svitzer has provided safety and support at sea. With 4,000 employees, a fleet of more than 450 vessels and operations all over the world, we are the global market leader within towage and marine related services. Svitzer is part of the Maersk Group. The Port of Montreal handled 1,402,393 TEUs in 2014, representing 12,575,069 tonnes of cargo. The Port also handled 9,246,741 tonnes of liquid bulk, and 8,433,434 tonnes of dry bulk, including 4,075,879 tonnes of grain. The total volume of goods handled in 2014 amounted to 30,445,984 million tonnes.

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SOURCE: SVITZER

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he first in the series of three designs relates to a 2000 TEU vessel that was conceived of to specialise in calling at small, narrow, upriver ports, for example the Port of Bangkok, Thailand. Navigating such harbours requires a vessel to have a shallow draught â&#x20AC;&#x201C; in the case of Bangkok, not more than 8.2 metres. To fulfil this, the vessel requires a relatively small diameter propeller. To cater for this without a loss of power, Knud E. Hansenâ&#x20AC;&#x2122;s designers presented a special propeller arrangement employing a directly driven main propeller with a diameter of 5.8 m and a counter-rotating Azipod with a 4.7 m propeller. Jesper Kanstrup, Senior Naval Architect at Knud E. Hansen explains: - The dual arrangement makes up for the relative small diameter of the propellers. The total propeller disk area of the two propellers corresponds to the area of a single propeller with a diameter of approx. 7.4 m and further, the

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counter-rotating propeller will recover some of the swirl energy produced by the main propeller, which increases the overall efficiency. 3.800 TEU CAPACITY A second design foresees a vessel which does not require such a shallow draught and which will have a 3,800 TEU capacity. With draught not being a primary consideration, this design sees the feeder vessel fitted out with a larger diameter, slower-turning propeller. - With the large propeller we get a propulsion efficiency which is not that far from the efficiency of a counter-rotating solution, but for a much lower cost. Unlike most feeder vessels, the deckhouse of this vessel is positioned slightly forward of amidships to maximize the number of container slots on deck considering the IMO requirements to the line of vision from the bridge. The added number of slots can be utilized in real-life loading conditions because the vessel is wider and has a higher stability than most feeder vessels of this size.

The design is being developed in consultation with DNVGL with the aim to achieve an Approval in Principle; something which Mr. Kanstrup says will help make the design easier to market. PARTIAL AND FULL LOADS The third arrangement sees the application of an innovative hull shape suited for carriage of both partial and full container loads. The problem arises due to the differing ways in which a vessel behaves based upon its load. A large container vessel, when carrying few containers, offers shallow draught, but has so much stability that accelerations are too high, causing problems for the lashing gear and the crew. - In this situation, you don’t want anything more than sufficient stability and so a narrow hull is preferable, says Mr. Kanstrup.

- The problem being that, when you come to carrying a full load you require a wider water line for additional stability. So the ideal hull would have inclined hull sides with narrow water lines at shallow draught and wider water lines at deeper draughts, which, however, is not the most practical design considering the vertical quays in ports. STABILIZED MONO-HULL The solution proposed by Knud E. Hansen is that instead of a conventional hull you take a hull with inclined sides, but mirror the triangular sections in each side to create a trimaran or in better words a “stabilized mono-hull” with a narrow main hull with vertical sides and outrigger hulls with a triangular cross section, but vertical sides towards the quay. This way you have the narrowness associated with low accelerations at partial load, and with the triangular section of the outrigger hulls, increased stability for full loads at deeper draught. The design features an open top section in the main hull, with 40ft containers stacked in a fixed cell guide system. Because cell guides are not fitted outboard the main hull above the outriggers, the loading flexibility with regard to carrying 20, 45 and 48ft containers has been addressed.

LITTLE RESISTANCE - Many have proposed an open top container vessel, but to prevent water from being shipped over the sides of the vessel and into the open holds when the vessel is rolling in bad weather, the hull depth must be very high. And with a deep hull, the handling time for the containers will be increased because of the increased vertical travelling distance. This vessel answers that problem. Because the main hull is narrow, the sides of the open-top holds can be lower, and with lower sides, faster container handling. When the vessel is not heeling, the sides barely touch the surface of the water, meaning little resistance. This ensures a vessel which can have a relatively high service speed while maintaining a reasonable fuel consumption per container, per nautical mile. - We were looking for something that answers the slow steaming problem. With the advent of slow steaming, for certain goods, air freight has become a more popular choice as the cargo arrives faster. And moving goods from sea transport to air freight does not have a positive effect on the CO2 emission. With a design such as this we have a vessel that could bridge the gap between slow steaming container ships and air freight. SOURCE: KNUD E. HANSEN

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This arrangement has additional benefits: - This prepares the vessel for LNG and dual-fuel propulsion, attributes that are becoming increasingly sought after. Here, we have a square block below the deckhouse, in which we can either have HFO tanks or LNG tanks. What’s more, the vessel can be built with HFO tanks and easily retrofitted for LNG the day the infrastructure for LNG is sufficiently developed if a dual-fuel engine is installed in the first place.

The dual arrangement makes up for the relative small diameter of the propellers. - Senior Naval Architect, Jesper Kanstrup, Knud E. Hansen

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BEST YEAR FOR SAFETY Maersk Drilling’s safety record for 2015 tells the story of a company which has been seeing greater activity, but fewer safety-related incidents. But a serious Incident on Mærsk Developer in June has cast a dark shadow over the statistics. - The most encouraging thing in 2015 has been to witness the professional manner with which the rig teams have been working on safety issues. We have deployed several new units and acquired many new employees, and yet we have managed to keep the frequency of Lost Time Injuries (LTIs) at the lowest level ever, while simultaneously maintaining a high uptime, says Bent Nielsen, Head of HSSE, Maersk Drilling. According to Bent Nielsen, the rig teams have shown great enthusiasm for taking responsibility regarding the effort to minimise personal injuries. Similarly, the company has made great progress regarding well control safety. During 2015 there was fewer well control safety incident which also indicates sound progress in this critical safety area. - We must give the rig teams a lot of credit for the fact that Maersk Drilling had only three LTI’s directly under our responsibility, Bent Nielsen says. SERIOUS ACCIDENT Unfortunately, the positive trend in the company’s LTI frequency was marred by the fact that one of the three LTIs involved a serious accident in June 2015, where an offshore employee on Mærsk Developer lost his left hand and three fingers on his right hand when his hands were hit by a falling pipe while working on the drill floor.

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- This accident has overshadowed all our efforts during the year. Hopefully, we will never see such an incident repeated on any of our rigs. This was a wake-up call for the whole organisation reminding us that though we have come far in our safety crusade we still have a lot of hard work in front of us. What are you doing to prevent such an accident occurring in 2016? - In 2016 we are increasing our focus on operational excellence. This means that we will reinforce our effort to cultivate a safety culture where everyone considers it totally natural to push the red button and stop the operation if they see an unsafe situation developing. We want every employee to be aware that it is a duty – not merely a right – to sound an alarm when process or personal safety is being compromised. Are you far from achieving such a safety culture ? - I do not think so. The fact that we have had the lowest level of LTIs ever during a period with so much activity, so many new employees and so many new vessels, clearly proves that we are on the right track, and that the rig crews are taking many good and proper decisions about safety every day. Nevertheless, we are far from accomplishing this mission when we are able to experience such a serious accident like the one we saw in June, Bent Nielsen says.

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An immediate response is required as soon as we see a situation develop in the wrong direction. - Angela Durkin, Chief Operational Officer, Maersk Drilling

A LONG WAY TO GO Chief Operational Officer, COO, Angela Durkin, had only been with Maersk Drilling for a couple of months, when the incident on MĂŚrsk Developer happened. - Of course I was very shocked to learn that such an incident could happen at Maersk Drilling. I thought Maersk Drilling had such a welldeveloped safety culture that such an incident would simply never occur, Angela Durkin says. - Safety must be on the top of our mind 24/7. An immediate response is required as soon as we see a situation develop in the wrong direction. This awareness should prevail not just at work but also at home. Walk the talk is the only way to build up a genuine safety culture. She continues: - Safety must be on the top of our mind 24/7. An immediate response is required as soon as we see a situation develop in the wrong direction. This awareness should prevail not just at work but also at home. Walk the talk is the only way to build up a genuine safety culture. SPILLS Unfortunately, Maersk Drilling did not have its best year in regard to

spills. 58 spills were recorded in 2015. The volume of external spills was significantly higher than in previous years. 12 of the 58 spills were external whereof 3 were above 1 bbl. - It is a poor result compared to earlier years. We need to strengthen our procedures when it comes to handling oil-based mud, for instance. We have tightened up a variety of procedures, Bent Nielsen says. He believes that the procedures devised to control the handling of liquids had grown so numerous in recent years that those same procedures had become hard for crew members to get an overview over and comprehend. - We have now reduced the number of procedures from 148 to just two, so that the crew members do not have to grapple with so many of them when they are planning an operation. We expect to see some significant benefits from this effort in 2016.

SOURCE: MAERSK DRILLING

FUTURE TRANSPORT SYSTEMS FOR EUROPEAN PORTS Discussions surrounding future transport systems were in focus when Mr Pat Cox, European Coordinator for the ScanMed Core Network Corridor, visited Copenhagen Malmö Port last month.

ogether with the CEOs of 25 core European ports, Mr Pat Cox organized a wide-ranging workshop, a so-called ScanMed Ideas Laboratory. The primary purpose of this ideas lab was to highlight good examples and exchange experiences between the ports in order to develop a more effective and sustainable transport corridor. - The ScanMed Corridor, which I have the privilege to coordinate, offers many good examples in the fields of efficiency, collaboration and sustainability. It is my goal to facilitate peer-to-peer exchanges. This Ideas Lab in Copenhagen Malmo Port was a wonderful success: almost every port along the ScanMed Corridor was represented, and very interesting examples were presented. Collaboration is key for Europe’s future transport system. For that reason, this ideas lab was just a start of a larger exercise, bringing together, among others, train operators, logistic companies and rail-road terminals. This will certainly encourage the emergence of innovative ecosystems, including new businesses and environmental friendly solutions, says Pat Cox, European Coordinator for the ScanMed Core Network Corridor. EIGHT COUNTRIES The ScanMed corridor links Scandinavia with the Mediterranean Sea. The multimodal route passes through eight European countries: Finland, Sweden, Norway, Denmark, Germany, Austria, Italy and Malta, and extends over several regions which together generate more than 27% of the EU’s GDP. - Being a so-called European Core Port, which CMP is, entails a major responsibility and places requirements on effectiveness in order to be

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attractive. We view collaboration with other ports as self-evident, both nationally and internationally, in order to support development of the future transport system. The discussions yesterday have maintained a high level and been very rewarding. I am really positive about continuing discussions in the future. Naturally, we are particularly proud that the European Commission has chosen to locate the first meeting here in Malmö, says Johan Röstin, CEO of Copenhagen Malmö Port AB. The flows of freight are absolutely decisive for flexible and cost-effective transportation. The ScanMed Corridor utilises the existing infrastructure effectively, taking into account, local shipping and ocean-going vessels, but also railways, roads, airports and rail-road terminals. CROSS-BORDER COLLABORATION Gert Nørgaard is Strategy & Planning Manager within CMP and took part in one of the ideas lab’s working parties. - We discussed the ports’ organisation, what opportunities a merger might provide, and other collaborations to make the ports more effective, he says. I used the example of the formation of CMP, which is a cross-border collaboration. - The ongoing cooperation with Region Gotland in relation to cruise traffic in the Baltic was also presented, Gert Nørgaard continues. In addition, we touched on our collaboration with the ports in Luleå, Lübeck and Venice, which focusses on transfer of RoRo freight to trains and boats in the ScanMed-corridor.

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SOURCE: CMP

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The ScanMed-corridor delivers numerous benefits in the form of increased effectiveness, sustainability and cooperation. - Pat Cox, European coordinator, ScanMed transport corridor.

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ituated outside of Trondheim, this innovative new facility introduces a paradigm shift in salmon farming now, and other fish types in the future. The Ocean Farming facility is a new and innovative design, developed to overcome the challenges of more traditional inshore fish farming facilities by being located in deeper waters, further from the coast. NUMEROUS OFFSHORE BENEFITS The submerged, anchored fixed structure will float steady in the exposed ocean and is suitable for water depths of 100 to 300 meters, where the aqua biological conditions are more ideal for aquaculture on ‘the fish’s

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terms’. The benefits of offshore fish farms are numerous, with conditions more suited to nurturing healthy fish, such as steady currents that limit exposure to sea lice infection. The facility is fully automated with normal operation requiring a crew of just 3 – 4 people. It can also be remotely operated. The project combines the best of existing technology and solutions from the Norwegian fish farming industry and the offshore oil and gas sector. Kongsberg is playing a key role by leveraging its position as a turnkey supplier of technology and engineering services for complex oil & gas production units, offshore vessels, fisheries and sensor systems for oceans research and environmental monitoring.

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ADVANCED TECHNOLOGY The Kongsberg Maritime technology scope of supply for the fish farm itself includes the K-Chief 600 automation system controlling a large number of different systems. Other highlights of Kongsberg’s role in the project include an extensive telecoms and positioning package, covering a range of products such as the Maritime Broadband Radio (MBR) for communication between offshore sites and to shore and precise Motion Reference Units (MRU). In addition, Kongsberg is responsible for the AIS requirements of the project, through delivery of the AISBS610 system and associated AIS infrastructure. Below the water, sophisticated products will provide a clear view of the action. Leading the

The project will be the first in the world to combine marine engineering, marine cybernetics and marine biology via a ‘big data’ approach fusing all the available underwater sensors and in this way offer decision support systems for the operators controlling and monitoring the feeding of the salmon and the overall physical environment of the sea.

subsea delivery is the high-tech Simrad EK80 scientific echo sounder, a range of underwater cameras and an Acoustic Doppler Current Profiler (ADCP), velocimeter and O2 sensors. Other sensors include Tank Sounding and Water Ingress Detection. The subsea delivery is designed to accurately detect where the fish are in the vast water volume of the cage and how they move in order to ensure effective feeding. In addition, advanced 3D display of the fish and relevant environmental parameters will be provided to the operators.

PARADIGM SHIFT - The Ocean Farming facility introduces a paradigm shift in salmon farming now, and other fish types in the future. With greater focus on biology and nurturing healthier fish, the concept delivers significantly improved yields that will prove important in the decades to come as part of Norway’s strategy to leverage its aquaculture and offshore expertise to meet the challenges of accelerating population growth and the pressures this places on the world’s food supply chain, comments Egil Haugsdal, President, Kongsberg Maritime. - To succeed in placing fish farming in exposed areas as a viable solution to address the food gap challenge, we need to integrate and harmonise a wide range of maritime and offshore

technologies, for the fish farm itself and the new vessels that will serve it. This is a unique, highly technical project where we will transfer our technology base and knowledge of developing for oil & gas production units and the most sophisticated vessels to provide high levels of automation and control, adds Thor Hukkelås, Principal Engineer Aquaculture Operations, Business Development, Kongsberg Maritime. KONGSBERG Kongsberg Maritime is a global marine technology company providing innovative and reliable technology solutions for all marine industry sectors including merchant, offshore, subsea and naval. Headquartered in Kongsberg, Norway, the company has manufacturing, sales and service facilities in 20 countries and a total of 65 worldwide offices. Kongsberg Maritime is part of Kongsberg Gruppen, an international, knowledge-based group that celebrated 200 years in business during 2014. Kongsberg supplies high-technology systems and solutions to customers in the oil and gas industry, the merchant marine, and the defence and aerospace industries. SOURCE: KONGSBERG MARITIME

he ferries, the Spirit of British Columbia and the Spirit of Vancouver, are the flagship vessels of British Columbia Ferry Services based in Victoria, Canada. - We know and trust Wärtsilä’s broad range of competences., and appreciate the detailed engineering and attention to schedule that Remontowa and Wärtsilä have undertaken for the completion of this project. The broad scope

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of equipment needed heightens considerably the importance of systems integration and LNG experience and in this we believe that Wärtsilä is one of the best in the Marine sector, says Mark Wilson, Vice President, Engineering, BC Ferries. SEVEN MONTHS The work on the first of these ships will be carried out during the 2017/18 winter season, and during the following winter season for the

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second vessel. This means that the time allowed for completing the work is just seven months, including a delivery voyage of more than one month each way. This demanding schedule requires excellent logistics and integrated planning between Wärtsilä and the shipyard. The Wärtsilä equipment will be delivered to the shipyard in mid 2017 and mid 2018 prior to the arrival of the vessels.

The complexity of this project required intensive preparations between Wärtsilä and Remontowa, as well as detailed LNG feasibility studies. Wärtsilä’s unique capabilities as a systems integrator, together with the company’s unmatched portfolio of products, systems and solutions, was an essential element in bringing the project planning to fruition. Wärtsilä has also been able to demonstrate its ability to undertake extended responsibilities beyond merely supplying the new equipment and upgrading the propulsion and manoeuvring installations. SUSTAINABLE - We congratulate British Columbia Ferry Services for having the foresight and vision to undertake these mid-life upgrades, and for making the two ships environmentally sustainable by converting them to operate on LNG fuel. We are also very pleased to be working on a major project again with the Remontowa

yard, with whom we have had good cooperation in the past, says Aaron Bresnahan, Vice President, Sales, Wärtsilä Marine Solutions. - This is an extensive project involving both conversion of the ships to upgrade their performance, as well as the gas conversion work. Fortunately, we have worked in the past with Wärtsilä and have good confidence in both their solutions and their capabilities, says Lucjan Falkiewicz, Project Manager for BC Ferries’ MLU project, Remontowa. FULL SCOPE The full scope of Wärtsilä’s supply includes four Wärtsilä 34DF dual-fuel engines with fuel gas systems, integrated automation systems and power management systems, the Wärtsilä Pro-Touch propulsion control system, the power transmission systems comprising two gearboxes, the Wärtsilä LNGPac comprising the fuel storage tank, bunkering station, gas detection system and process control automa-

tion, Wärtsilä rudders, site representation and integration engineering, and crew training. The upgrading work will involve surveying the stern tube and renewing components, surveying and overhauling the controllable pitch propeller (CPP) hubs, redesigning and renewing the CPP propeller blades, surveying, renewing and overhauling the oil distribution boxes, and renewing two bow thrusters and E motors. In December 2014, Wärtsilä was contracted to supply the dual-fuel machinery for three new ferries being built at the Remontowa yard on behalf of British Columbia Ferry Services.

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SOURCE: WÄRTSILÄ CORPORATION

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ABB TO ELECTRIFY NORWEGIAN HYBRID CAR FERRY ABB, the leading power and automation technology group, will supply the power system for a hybrid car ferry serving an important passenger route in Norway. Designed with flexibility in mind, the vessel will run as a hybrid but can be modified to run as a full electric ferry with shore charging system.

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- This is another example of how ABB is at the forefront of energy storage solutions for the maritime industry, says Sindre Sætre, ABB’s Director of Marine and Ports in Norway. This contract comes only months after ABB secured the order to supply the power system for the iconic Seasight battery sightseeing ferry, which will serve the UNESCO listed Nærøyfjord. The centrepiece of ABB’s scope of supply is the Onboard DC Grid system. It is a modular electrical system platform that makes use of direct current to connect energy sources with consumers. This greatly simplifies the integration of energy storage, in this case two 270 kWh battery packs, and allows the engines to operate more efficiently at variable speed. This helps create significant energy and emissions savings. The batteries will be used for “peak shaving”, meaning the batteries will help meet the power demand, thus allowing the generators to work at a more optimal level.

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BATTERY PACKS The owner Torghatten Trafikkselskap will have the option of adding another sixteen battery packs and a shore connection in order to operate the vessel fully electric. - Energy storage has been one of the most important areas of focus for our research and development team, says Juha Koskela, Managing Director of ABB’s Marine and Ports. -We recognize batteries have an important role to play on a range of vessels and is technology for the present as well as the future. ABB’s power system is part of the total electric system which is being supplied by Acel. The so-called MM63 ferry, designed by Multi Maritime will be built by Fiskarstrand Verft in western Norway. The ferry will have a capacity of 60 cars and 250 passengers.

SOURCE: ABB

t is the international humanitarian aid organisation Mercy Ships that so far has had the Norden employee join its hospital ship Africa Mercy twice. This is the world’s largest private hospital ship, which has previously served as the train ferry Dronning Ingrid (in English the Danish word Dronning means queen), running regular service across the Great Belt in Denmark during the years 1980-1997. GOES FAR BACK - My story with Mercy Ships began as a boy when I sailed with Dronning Ingrid between Korsør and Nyborg to visit my grandmother and grandfather on the island of Ærø, where I would later train to be a shipmaster. Sailing with the ferry was simply very special, and when the railway across the Great Belt opened in 1997 and the railway ferry service was discontinued, I kept myself up to date about the fate of Dronning Ingrid. After I had achieved my master mariner certificate in 2010, I actively went into the search to get on board again. I succeeded in doing so for the first time in 2011, when Mercy Ships had rebuilt Dronning Ingrid into the hospital ship Africa Mercy, Milan R. Falsing recounts. His job title on board the Africa Mercy is that of navigation officer, and his job consists of

keeping the vessel ready to sail at all times, so that it always and at short notice can sail to a new country where its assistance is needed. 7,000 OPERATIONS A YEAR The ship has 5 operating rooms, in which 7,000 operations are carried out on an annual basis, and it has space for approximately 80 in-patients. - Why do I spend time and energy working unpaid for Mercy Ships? Because it is meaningful. To help others, in my opinion, is a precondition for being human. Once you have met children and adults with tumours the size of basketballs, with eyes that cannot see, with teeth that have all but rotted away, or with something even worse, then you understand the importance of the job that Mercy Ships is doing. And for the thousands of people who are receiving treatment, this is invaluable help. Nothing compares to seeing our patients being cured. That is what it is all about, says Chief Officer Milan R. Falsing. Among Mercy Ships’ regular Danish donors is Orients Fond.

SOURCE: NORDEN NEWS SPRING 2016

When Milan R. Falsing is travelling with the humanitarian aid organisation Mercy Ship as navigation officer, there is also time to talk to the youngest patients.

number of superyacht shipyards revealed strong starts to 2016 including Amels, which currently has 10 Limited Editions superyachts and five Damen Yacht Support vessels in build at its facilities. Fellow shipyard Heesen Yachts currently has 10 superyachts under construction, ranging from 47m to 70m in length. - 2016 is going to be a very exciting year for us as we’re going to launch the largest project to date, Kometa, a 70m superyacht, says Sara Gioanala from Heesen Yachts According to figures from Boat International, superyacht sales increased by 40% between 2014 and 2015. In the newest edition of its annual Wealth Report, property agent Knight Frank also commented not only on the growth of sales in the superyacht industry, but the perception of yachting among ultra-high-net-worth individuals, “In danish maritime magazine

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a world where many UHNWIs are cash rich yet time poor, yachting continues to provide the ultimate sanctuary for privacy and an opportunity to spend quality time with family and friends.”

for 2016. Rupert from Burgess Yachts also attributed the health of the overall market to the strong US dollar, as well as a “sizeable client base of UHNW Americans with a good appetite for superyachting.”

In line with this growth trend, Yachting Pages Media Group, a specialist in products and services for the superyacht industry has confirmed increased revenue for its print directories and record profit for both its website and delivery service.

When asked about the US market, Sara Gioanala from Heesen Yachts commented: - We are investing a lot in the US market and look forward to the results!

Michelle Williams from Yachting Pages: - More and more marine businesses want to invest in advertising, because they can clearly see return on investment. Captains and crew are spending large amounts of money on supplies and services and they want to be found. The US sector in particular is looking to be both a source of success and a target market

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As well as builds and sales, superyacht shows are seeing a promising start to 2016, with a number of shows reporting record visitors, including Yachts Miami Beach and Boot Dusseldorf. London Boat Show in particular saw a rise in industry revenue and continued growth in the domestic market.

SOURCE: YACHTING PAGES

STENA ORDERS FOUR NEW ROPAX FERRIES Stena has signed a contract for four new RoPax ferries with planned delivery during 2019 and 2020, with an option for another four vessels. The vessels will be built by AVIC Shipyard in China, and used within Stena Lines route network in Northern Europe.

GAS READY The vessels will have a capacity of more than 3 000 lane meters in a drive-through configuration

and will accommodate about 1 000 passengers and offer a full range of passenger services. The main engines will be “gas ready”, prepared to be fueled by either methanol or LNG. - We foresee a continued demand growth for short sea services in Northern Europe and in many other parts of the world. Ferry transportation will play an essential part in shaping tomorrow’s logistics infrastructure if we are to have sustainable societie, says Dan Sten Olsson, Chairman in Stena Line.

FAMILY OWNED Stena Line is one of Europe’s leading ferry companies with 35 vessels and 22 routes in Northern Europe. Stena Line operates the biggest fleet and the widest choice of routes between Ireland and Britain with an extensive route network including Belfast to Cairnryan, Belfast to Liverpool, Belfast to Heysham, Dublin Port to Holyhead and Rosslare to Fishguard.

‘

- We are very pleased that Stena have signed a contract for four vessels with an option for another four. During the course of the past 24 months our engineering staff has managed to develop a design that is not only 50% larger than today’s standard RoPax vessels, but more importantly, incorporates the emission reduction and efficiency initiatives that have been developed throughout the Stena Group during the past years. These ships will be the most fuel efficient ferries in the world and will set a new industry standard when it comes to operational performance, emissions and cost competitiveness, says Carl-Johan Hagman, Managing Director of Stena Line.

- Not only is transportation on sea the most environmentally efficient way of moving goods, it is also infrastructure that provides reliable and speedy logistics with very limited public cost. Through this investment we prepare Stena Line for further growth.

The company is family-owned, was founded in 1962 and is headquartered in Gothenburg. Stena Line is part of the Stena Sphere, which has about 20 500 employees and an annual turnover of over 50 billion SEK.

SOURCE: STENA LINE

We foresee a continued demand growth for short sea services in Northern Europe and in many other parts of the world. - Managing Director, Carl-Johan Hagman, Stena Line

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