Dmm 6 14 by Danish Maritime Fair

DANISH

DANISH MARITIME FAIR A big success

DANISH SHIP OF THE YEAR Bergensfjord

MARITIME MAGAZINE November 2014

No. 6 DKK 49,50

DANISH MARITIME DAYS Can lead to real change

Danish Maritime Magazine 6-2014

TEMA

DANISH MARITIME Fair

The Danish Ship of the year 2014: Bergensfjord The Fjord Line ferry Bergensfjord won The Danish ship of The Year 2014, when the newly established prize was awarded at the Danish Maritime Fair, in the Bella Center in Copenhagen in mid-October. The reason for choosing Bergensfjord among the five candidates was mainly its environmental friendliness due to the use of LNG as fuel in the main engine.

4 the Danish Maritime Fair Denmark got a brand new international maritime exhibition when Danish Maritime Fair was launched in mid-October. It happened at the Bella Center in Copenhagen, where the Media Group Maritime Denmark had arranged an exhibition to give exhibitors the opportunity to showcase their maritime products and skills. There were 180 exhibitors from 20 countries and 4.065 visitors from 78 countries in the four days the fair was open.

Clipper wants to consolidate its position within dry cargo Before the beginning of the crisis in 2008, the Danish based shipping company Clipper Group had spread itself over many different business areas, maybe a little too many. At any rate the crises has taught Clipper that it is better to concentrate on what one is good at, which in the case of Clipper means dry cargo.

TEMA

DANISH MARITIME Days

The maritime world ready for intelligent growth

Growing interest in renewable energy and CO2 savings have given the offshore wind energy a tremendous boost and kick started a great deal of Danish maritime activity. Much still depends on the continued political will to invest in wind power but the lack of installation vessel seems to have faded out. Now it is all about venturing further out into the water, getting the logistics in place and training the right people.

The battle against pirates has to be won on land

Installation vessels are no longer in short supply

Piracy is developing into something more than small boats attacking passing ships. In West Africa, a wide range of maritime crime is flourishing. This is a threat to both the maritime traffic and the economic development.

danish Maritime magazine ISSN 1903-5888 advisory board Klaus Kjærulff, Chairman SeaMall (Chairman) Jenny Braat, CEO Danish Maritime Jan Fritz Hansen, EVP Danish Shipowners’ Assiciation Per Jørgensen, Chairman MMF Bjarne Mathiesen Steen Sabinsky, CEO Maritime Development Center of Europe / EMUC Kurt Skov, CEO Blue Water Shipping Lars Thrane, Founder af Thrane & Thrane

We must ensure that investors have confidence that offshore wind power will regain its importance, says Bent Bendtsen. He will work to ensure that renewable energy is maintained as a priority in the new.

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

November 2014

No. 6

DKK 49,50

publisher

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

ads

Jakob le Fevre Phone: +45 31 60 40 15 sales@maritimedanmark.dk

ARITIME DANISH MMAGAZINE

Designunivers Printing: PE Offset A/S, Varde

Bergensfjord

DANISH MARITIME FAIR A big success

PROFILES are produced in cooperation with our partners

DANISH SHIP OF THE YEAR Bergensfjord

Next issue: 2nd January 2015

DANISH MARITIME DAYS Can lead to real change

Photo: Carsten Lundager

kolofon

Offshore wind reduces dependency on Putin

DANISH MARITIME FAIR

By Bent Mikkelsen

The Danish Maritime Fair Denmark got a brand new international maritime exhibition when Danish Maritime Fair was launched in mid-October. It happened at the Bella Center in Copenhagen, where the Media Group Maritime Denmark had arranged an exhibition to give exhibitors the opportunity to showcase their maritime products and skills. There were 180 exhibitors from 20 countries and 4.065 visitors from 78 countries in the four days the fair was open. - We found it interesting to create a fair that was aimed directly towards The Blue Denmark and it seems that the exhibitors thought the same. Therefore I believe we can safely describe it as a success, says Rene Wittendorff, CEO of the Media Group Maritime Denmark. - Everyone knows the Nor-Shipping in Oslo or SMM in Hamburg, but both are gigantic fairs that are almost too big and complex. Therefore, we got the idea that it could be interesting to create a fair that was aimed towards the Danish market, and it seems we were right. - There were 20 foreign suppliers among the 180 exhibitors and during the fair, the Media Group Maritime Denmark was contacted by a number of companies that showed up as guests,

danish

Maritime magazine

/ Page 4

but are interested in participating as exhibitors next year, says Rene Wittendorff. Many different events The Danish Maritime Fair had many different events. The most spectacular however, probably was The Danish Ship of The Year 2014 event. The Media Group Maritime Denmark has instituted the award witch is symbolized by a sculpture created by the Belgian-French artist Phil Billen. The Danish Ship of The Year 2014 was awarded to Fjordlines newly built ferry Bergensfjord that was nominated along with four other ships (that were not ranked). It was the Swath passenger ship Lina, built in composite material, the ro/ro ship Ark Germania, the installation vessel Sea Challenger and the product tanker Nord Gerania. Awarding Bergensfjord may be seen in light of

Daily news on www.maritimedanmark.dk

the environmental requirements and changes that are underway in these years. There are growing demands for lowering the release of various gasses from ships sailing in the socalled ECA region, which covers most of the North Sea and Scandinavia, all the way to St. Petersburg. Bergensfjord is built to run on LNG which is a natural gas. It was expected that the main engines would have to be assisted by a few auxiliary engines operated with regular fuel during harbor maneuvers, but apparently the shipâ&#x20AC;&#x2122;s waste-heat-recovery plant produces energy enough, to cover the entire shipâ&#x20AC;&#x2122;s needs. - We are very satisfied with the operation of Bergensfjord and its sister ferry Stavangerfjord, which was added to the fleet in 2012. In fact, we were pleasantly surprised of how few problems that have occurred in the running

of the ships, says Gert Balling, CEO of Fjord Line Denmark A/S.

out to be highly optimized chemical tanker at around 10,000 DWT.

- We are also very proud to receive the award - The Danish Ship of The Year 2014. It is a great pleasure, that the effort we put into building these two future-proof ferries, have given this kind of recognition, says Gert Balling.

- We’ve tried to gather all our experience into one new ship, where all the good features that we know is built into it. The ship will be built on the principle that things should be simple. Not that we have to compromise on safety, but technical installations can sometimes be unnecessarily complicated and can be difficult to repair. That is something that we have tried to avoid in this project, says Jan Rindebæk, Technical Manager at Uni-Tankers.

He is also pleased that the traffic numbers on the routes from Hirtshals to Risavika (Stavanger) and Bergen and from Hirtshals to Langesund are in accordance with the optimistic budgets that where laid before the ferries began operation. Shipping companies The Danish Maritime Fair also had several Danish shipping companies among the exhibitors. There was the Clipper Group, with a fleet of over 100 vessels. The fast growing Dannebrog Group, and the Middelfart-company Uni-Tankers - which operates and controls a fleet of 40 chemical tankers. Uni-Tankers used the fair to present a new tanker, which is developed based on the extensive experience accumulated during the years of purchasing second-hand ships or purchasing vessels under construction. In collaboration with the naval architect firm OSK-Ship Tech, it turned

- It’s a little different to present a brand new ship, instead of the usual stack of brochures, ship models and a neatly edited video that shows how good we are, says Jan Rindebæk. A dark day One of the other exhibitors were the Aalborg based company OW Bunker, who had to spend part of the Thursday during the fair, to deal with a massive pressure on the company’s share price. The day before, OW Bunker had to downgrade its earnings forecast for the current year compared to the expectations that were put forth at the beginning of 2014, when OW Bunker went public after being owned by a private equity fund. An optimistic goal of the

sales prospectus in combination with a falling price of bunker oil led to regular beating at the stock exchange during the week of the fair and the share price dropped by around 20%. - I won’t lie, it was not a fun experience to stand there and explain it, but it’s hard times in the bunker industry, where there are many who work under different conditions than we do in OW Bunker, said an anonymous employee of the company. We are strongly challenged by the bunker companies in the East, where quality assurance is not at the level it is here in OW Bunker, and it has now cost me around 17,000 kr. on my savings in shares in the company. Ports Several ports were also exhibitors at the fair. Among them was the Port of Thyborøn represented by the Port Captain Theis Christensen and Karl Kristian Bro, who is the chairman of the board and acting Port Director, as well as several other employees. - We are here at the fair to point out that Thyborøn is more than just fishing. For 100 years we have been a port that services the fishing industry, and we will continue to do so, but we are working on getting more and

PHoto: Carsten Lundager

Daily news on www.maritimedanmark.dk

Page 5 /

danish

Maritime magazine

DANISH MARITIME FAIR

other customers in our port. It is especially freight customers that we are looking for. This is being done by looking for customers, but also by making room for the future customer’s goods and their needs for berthing and/or depth, says Theis Christensen.

The regional stand A number of Funen maritime companies had agreed on a cooperation on a stand at the fair. Each of them ready to inform and serve potential customers or people who just came by to greet business associates.

In addition to fishing and fishing-related imports (especially frozen fish from Iceland / the Faroe Islands and Norway) Thyborøn is the base port for loading of sea gravel. It is just sitting there in huge piles on the latest port areas in Thyborøn.

The companies were Aquatec Solutions, Simac, Automation Lab, Tuco Group, SeaMall, Kjaer Data, SDU Business Tech Innovation, Development Funen, Lindoe Industrial Park and Scandinavian Fire Fighting.

- It’s a really big export commodity in our port and we are looking at several other options. Particularly Midtjyske Railways, which operates the railway between Lemvig and Thyborøn. Along with the railway company, we are working to move gravel by train. The plan is to construct a side rail for the Port of Thyborøn and let the trains depart from there. The transportation of goods on railways in Denmark is carried out by DB/Schenker, who then hires Midtjyske Railways as an operator. They import all raw materials for the chemical factory Cheminova on Rønland. Whether this gravel transport on rails will happen is yet to be decided, says Theis Christensen.

- I think it was a fine idea to join together in a larger stand and I can think of several benefits. We are all a bit more noticeable in the fair and the people working at the stand can ask their neighbor to look after their stand while they look around, said John Vestergaard Madsen, CEO of Scandinavian Fire Fighting. Also the fact that the different companies have different business areas and therefore there is in no competition between them. Speakers Corner Many guests came to the Danish Maritime Fair to hear presentations and inputs of various kinds in the open Speakers Corner. There were chairs, a projector and a podium complete with microphone.

- I would not say that it was a huge success, but there were several presentations where there were many listeners, but other speakers had to suffer lack of a crowd. But there is no doubt that future fairs will also offer a similar opportunity to give easy access presentations to the public on topics and issues says Rene

Christian Sonne Service Manager, Nadiro, Svendborg - Here in Nadiro we think that the fair has been fun and rewarding for us. There has been a continuous stream of visitors and of these there have been several interesting potential customers for our products. - We have also been part of the fun experience involving some of our products, which have

been subject to innovation from some of the many engineer-students who have been a part of the Blue Innovation Camp. One of the students has used our Drop-In-Ball system to develop a support for a bicycle, which can be attached to a building with the system. He was simply tired of getting his bike stolen all the time and had wondered how he could

prevent it. He then saw an opportunity with the Drop-In-Ball system. - I’m not quite sure if it will ever become a reality, but the idea of using our products for an innovation project like that, is very interesting. It could easily result in an innovative marine product one day.

Line Juul Greisen communications consultant, M / S Museum of Shipping, Kronborg - It is the first time that the museum participates in a maritime exhibition. We do this because we want to support The Blue Denmark, which we are a part of. We are not selling anything, like most of the other fair participants are, yet we have felt an interest in our stand and people are excited to hear about the new museum. I guess you could say

danish

Maritime magazine

/ Page 6

that it is the museums one year anniversary and we’ve just opened an exhibition on the voyage with passenger ships between Esbjerg and England. This happened due to the closure of the route that the by ro/pax ferry Sirena Seaways used to sail. - I think we have been well received by audiences and many have said that they

Daily news on www.maritimedanmark.dk

certainly want to take the trip to the former dry dock to see the new museum. The new museum is quite unique and differs from the old one in the Kronborg Castle, concerning design and space. It’s kind of like the museum has been rediscovered by the maritime industry. A lot of people at the stand said that they want to visit and take a look at the new museum.

PHoto: Carsten Lundager

Wittendorff, CEO of the Media Group Maritime Denmark.

to participate in the fair, and even more are ready to join next year.

Danish Maritime Fair is here to stay There is no doubt that the Danish Maritime Fair is here to stay. Many companies and organizations from the Blue Denmark choose

The fair organizers, the Media Group Maritime Denmark, are already in dialogue with its exhibitors and partners (Danish Maritime, Danish Shipping Association, DMA and Oil Gas

Denmark) to plan future fairs. The premise is that the fair will be during the Danish Maritime Days, which has already secured funds to continue for the next two years.

Johnny Hauberg CEO, Hytek Marine Solutions, Frederikshavn - We have definitely gone all in at the fair. Outside we have a large truck with a crane and a real size lifeboat, but we actually feel a little disappointed that there weren’t more visitors at the fair. We have launched our stand with

a big motorcycle with matching trailer and a barbecue to spice things up, but we don’t think there have been enough customers. - We will probably be back next year but to a lesser extent than this year. The most positive

thing about this fair is that our stand had a visit from some smokers. Our stand is outdoors and that meant that I and other guests could smoke while working. The smokers that were indoor had to come outside for a smoke sometime.

Roar Thomsen Sales Manager, Søby Shipyard, Søby - It has been interesting to be at this new fair and there was a nice stream of visitors going to our little stand in the middle of the exhibition. Unfortunately, we have not seen many ship owners or companies that manage ships and we don’t really fell that we have gotten much out of this experience. We have made some contacts that we will follow up on and hope that good things

will follow. Unfortunately, there were very few people who said “I want a ship in dock”. - Part of the interest has also focused on how the future will look after our major expansion project becomes a reality. We are building a bigger dock, better sailing conditions and a new outer pier. We are working vigorously to complete all of this, especially because the general trend is

that small cargo ships and ferries are being replaced with larger ships with more tonnage, thus creating a need for larger dock capacity. We are still in the small segment, because we still have some time left on the maintenance contract we have with the Navy ships. These ships are not very big and that is why we intend to keep our smallest doc intact despite the fact that there are no other ships left in that size.

Daily news on www.maritimedanmark.dk

Page 7 /

danish

Maritime magazine

DANISH MARITIME FAIR

By Bent Mikkelsen

New Uni-Tanker vessel unveiled at Danish Maritime Fair The Middelfart-company Uni-Tankers used the Danish Maritime Fair to present their first new construction project in the companyâ&#x20AC;&#x2122;s history. Uni-Tankers is known for having delivery of new ships directly from the yard, but these have been purchased as projects that have been under construction and have been sold to the company during the construction period. The new project is the result of the company putting all its know-how into a tailor-made tanker vessel. - Yes, although we have purchased new ships on several occasions, others have designed them, and we have not been able to change much more than the name, hull color and to some extent the interior. So we put our heads together and found all the features that we believe are beneficial to our transport pattern, says Jan RindebĂŚk, Technical Manager at Uni-Tankers. The know-how that has been put into this project has come from both the commercial department and the surveyors. - It's all this put together that has resulted in a tanker of 9,660 DWT with duplex

danish

Maritime magazine

/ Page 8

steel tanks, with one pump for each of the 16 tanks. It's also due to a lot of experience from the daily operation of the other tankers that we have chosen to make everything as simple as possible without compromising anything. Over the years we have seen many complex technical designs, which often had to undergo repair. The daily operations are highly laborintensive and this is the kind of thing we want to avoid in our project. And in fact, the process is far from over. It runs on a daily basis, where every input from the ships is being tossed and turned for the benefit of the future, says Jan RindebĂŚk.

Daily news on www.maritimedanmark.dk

Trunk The new project, in collaboration with OSK-Ship Tech, is a tanker with a trunk on the weather deck. This style of building seems to be a little old-fashioned and was in fact how the British shipyards did in the 1930s, but there is a good reason that this style has emerged again. - We are always struggling with the combination of wind, sun and water on the deck of tankers. The salt water and the sun, especially when sailing in the Mediterranean Sea erode pipelines, power lines, and other things on the deck. The combination of these factors is quite rough on the installations on the deck. But by

keeping it all inside a trunk, the problem is pretty much solved. The pipes will still corroded and the cables will age, but at a much slower pace than if they were sitting outdoors. It is also a great advantage when we are sailing in cold areas. The pipelines are easier to heat when they are located "inside" so to speak. Therefore we have decided to build a trunk on the new ship, says Jan RindebĂŚk. The tanks are made of duplex steel, which is a special type of stainless steel that is designed to withstand the toughest cargo types that can be shipped in tankers under the IMO II code that the ship is classified to.

- It is of the utmost importance that the crew has good conditions on board. They have that in most ships in our fleet, but we can also achieve improvements by looking at wishes and ideas that have been presented, says Jan RindebĂŚk. Other facts about the ship's, is its length of 130 meters and a width of 19,5 meters and a main engine with a 14 knots service speed capacity or 12,5 knots ECO-speed on lowsulphur gasolie.

The ship will also have a modern bow that somewhat resembles the patented x-bow, with a vertical line in the bow plates.

Not yet contracted - I have to point out that we have not yet placed an order. We have developed the project and are ready if a need occurs or there is an opening in a shipyard, where we can have our ship built in adequate quality and at the right price, says Torben Andersen, CEO of Uni-Tankers.

Accommodation One of the places where the construction project is not simple is in the living quarters. There will be single chambers for all crewmembers. There are chambers for 22 people because the first ship is to be a kind of school / undergraduate ship.

- We chose to take the project to the public at the Danish Maritime Fair because we wanted to show something a bit different from the ordinary - like a fleet list and a nice video about how well we are doing. The news was well received at the fair and there were a lot of interest in the projects. There was a time

when it was unheard of to go public with a ship still on a project basis, but we are not worried about someone stealing the project or the features that we have built into the new ship, says Torben Andersen. The fleet Uni-Tankers already have a sailing fleet of 17 tankers of between 18,000 DWT (Selandia Swan) to 4,700 DWT (Feo Swan). The majority of the fleet is flying the Danish flag, but a few ships continue to be Malta-flagged. This applies to several of the ships Uni-Tankers previously acquired from Erria A/S. However, they will be flying the Danish flag in the near future. The commercial department - Uni-Chartering - has a fleet of 22 vessels ranging in size from 19,999 DWT (Halit Bey) to 1,600 DWT (Maru) and another tanker in Management (Atlantis Almeira) 6,900 DWT. So overall, 40 tankers will be controlled from the new joint office at the former power station on the quay in Middelfart. Until recently, Uni-Chartering had their office in Svendborg, but they are now combined into a joint office in Middelfart.

Daily news on www.maritimedanmark.dk

Page 9 /

danish

Maritime magazine

By Bent Mikkelsen

The Danish Ship of the year 2014: The Fjord Line ferry Bergensfjord won The Danish ship of The Year 2014, when the newly established prize was awarded at the Danish Maritime Fair, in the Bella Center in Copenhagen in mid-October. The reason for choosing Bergensfjord among the five candidates was mainly its environmental friendliness due to the use of LNG as fuel in the main engine.

danish

Maritime magazine

/ Page 10

Daily news on www.maritimedanmark.dk

- We were pretty sure which of the five nominated ships we would present with the award this year. Bergensfjord was a very obvious candidate with the growing debate on emissions and sailing under new conditions in the so-called ECA areas where emissions of SOx (completely eliminated) and NOx (reduced by 92%) will be reduced significantly in the near future. Bergensfjord was the obvious choice, and with the construction of both Bergensfjord and its sister ferry, the Stavanger Fjord - which also uses LNG - Fjord Line leads the way to the future of shipping, says naval architect Hans Otto Kristensen (Danish Shipowners Association).

Bergensfjord Hans Otto Kristensen along with Bo CerupSimonsen (Technical University of Denmark, DTU), Thomas Knudsen (MAN-B&W Turbo), Anders Ørgaard Hansen (OSK-Shiptec), Henrik Bach (DNV GL), Per Jørgensen (Danish Engineers Association) and Klaus Kjaerulff (KK-Shipping) constituted the committee that was responsible for selecting the ship for the award. - The other ships also had their own distinctive traits, which helped them to become candidates for the award, but a majority of

the committee members choose Bergensfjord as the winner, says Hans Otto Kristensen. The other ships nominated were A2SEA installation vessel the Sea Challenger, DFDS ro/ro ship the Ark Germania, D/S Nordens product tanker the Nord Gerania and the SWATH passenger ship Lina, built of composite material. Bunkers The Bergensfjord was delivered from the Bergen Group Fosen in February 2014 and is built to run on LNG. The fuel-decision was made at a

relatively early stage in the construction of the ferries and resulted in an additional sum, in the total investment of around 2,1 billion Norwegian crowns. There was also uncertainty about the possibilities to bunker LNG in Norway and in Denmark, since there was no of gas storage at the docks. - It’s been an uphill battle all the way to the premiere and there are still things that can be improved to make things more flexible, says Gert Balling, director of Fjord Line.

Daily news on www.maritimedanmark.dk

Page 11 /

danish

Maritime magazine

- We are currently bunkering at Risavika in Tanager (about 16 km from Stavanger city center) in Norway, where there is a direct gas line to the quayside. It was not like that in the beginning. It was very difficult to get the Norwegian governments permissions to bunker gas with passengers on board. We had to transport the gas in trucks from Norway through Sweden to Gothenburg and sailed them to Frederikshavn to bunker in Hirtshals, says Gert Balling.

storage facility at the Port of Hirtshals. It will be ready in 2020 and will make it possible to store large quantities in the homeport. The facility in Hirtshals will be 10.000 cubic meters and it will also be possible for other operators bunker here.

The Norwegian authorities now have a framework in place so itâ&#x20AC;&#x2122;s possible to bunker in Risavika.

Until then, a 400 cubic meter storage facility will be ready in the port by the end of 2014.

Fjord Line, along with the Port of Hirtshals has obtained a permission to establish a large gas

danish

Maritime magazine

/ Page 12

- In reality, a separate company will build the facility, so that others can purchase gas, without buying it from the competition, says Gert Balling.

The operation - The operation of Bergensfjord has exceeded expectations, says Gert Balling. The LNG has

Daily news on www.maritimedanmark.dk

operated well and even better than expected. Our consumption of diesel fuel for specific tasks is practically nothing. We expected that it would be necessary to use some for the production of electricity on board. But to our pleasant surprise, the heat from our waste-heat-recovery plant can produce more than enough energy steam to cover the electrical needs onboard the ship, says Gert Balling. The explanation for this is that the exhaust from the LNG has a very high temperature and is used to heat water that turns into steam for the turbine and this produces enough power to cover the ferryâ&#x20AC;&#x2122;s electrical needs. The steam turbine plant also helps to reduce the environmental impact that the ship has.

Facts Bergensfjord is flying the Danish flag with Hirtshals as homeport. It is owned by Fjord Ship Holding IV A/S and operated by Fjord Line, which was established by Norwegian investors, but has its headquarters in Hirtshals (Fjord Line Denmark A/S). The ferry was build by the Bergen Group Fosen (as newbuilding no. 88), who received the hull from Stocznia Gdanska in Gdansk. Bergensfjord - like her sister ship Stavanger Fjord – has a capacity of 1.500 passengers. There are 306 cabins with a total of 1.188 beds. The car decks capacity is 600 cars or a combination of trucks and cars on the decks 1.350 lane meters. In the engine room there are four main engines of the 40V12PG Bergen type (Bergen Diesel has since been taken over by Rolls Royce), which combined produces 22,370 kW for a 21.5 knots service speed. Bergensfjord is operating on two routes for Fjord Line. The main route goes from Hirtshals through Risavika to Bergen and back. When the ferrie arrive at Hirtshals daily at 7:30, it does a day trip to Langesund. Departure from Hirtshals is 09:30 with arrival at 14:00 at Langesund. Then the ferry departs from Langesund again

at 15:00 and arrives in Hirtshals at 19:30. The ferry is then prepared for a Risavika/Bergen trip. Departure is at 21:30 and the next day at 7:00 the ferry arrives in Risavika. It departs shortly after arriving at Bergen at 13:00. The departure back to Hirtshals is at 14:15. Fjord Line employs around 525 seafarers on an annual basis, but up to 700 in high season, when the HSC ferry Fjord Cat is in operation between Hirtshals and Kristiansand.

The award The award for the Danish Ship of The Year 2014 is sculpture created by the Belgian-French artist Phil Billen. The sculpture is now at Fjord Line’s office in Hirtshals until next year, where it will be awarded to a new ship, thus giving it a new home for the next 12 months. Each ship is portrayed with a special sign on the sculpture, which is made of iron and wood.

Inverters Motors

SpeCIalISt In hybrID SolutIonS for InDuStry anD offShore

DC/DC Converters

Supercapacitors

Generators

Daily news on www.maritimedanmark.dk

Page 13 /

danish

Maritime magazine

By Tina Altenburg

p to the crisis at the end of 2008, the strategy in Clipper Group was that it was a good thing to spread ones investments over different business areas in order to counterbalance the volatile dry cargo market.

the shipping group named ”Back to Basics”, meaning that the shipping company should bring dry cargo into focus again while at the same time withdrawing from some of the many other business areas.

- This meant that we covered ro/ro, ferries and a lot more, and we probably went one step too far. In other words: we had entered too many business areas, says Kristian Mørch, who is CEO of Clipper Group in cooperation with Gary Vogel.

- We have gone back to Clipper’s roots. We started with dry cargo, this is our DNA. During the period from about 2000 to 2007, we went into a lot of business areas, and things were growing dramatically. However, with the crisis in 2008 we realized that we could not cover all these areas. Shipping is, as you know, a capital intensive business, and it became clear to us

So, after the start of the crisis in 2008, Clipper Group decided to follow a new strategy, by

danish

Maritime magazine

/ Page 14

Daily news on www.maritimedanmark.dk

that dry cargo was the area in which we could create most value. It did not take us a long time to reach the decision that this was where we should have our focus, Gary Vogel says. Exceeding the market in dry cargo - We consider ourselves as a market leader within the handysize and supramax segments, where we have a fleet of approximately 100 vessels. This gives us a critical mass to achieve a good economy. We have offices all over the world, and by being local, we can create value, instead of just participating in the market. We exceed the market, and actually, we have done quite well

In excess of the dry cargo fleet Clipper Group has had activities within such different areas as multi-purpose ships, tankers, cruise vessels, ferries and ro/ro. The company holds on to the two last-mentioned business areas while pulling out of the others now or in the near future. Ro/ro and ferries - Our strategy is now to hold on to dry cargo as our core business, but we also keep the ro/ro and the ferry business in order to counterbalance the big fluctuations that there may be within dry cargo. This makes sense because these are two profitable areas, Kristian Mørch says. - Both ro/ro and the ferry business give very stable earnings. The transportation of passengers between Bornholm and Ystad, to name but one example, is not subject to the same fluctuations as the dry cargo market. So viewed, as a means to create stable earnings the two business areas are very important. If we look at the

first half year, the dry cargo area has been under a great pressure, while the two other segments have done rather well. Therefore, they are not only important areas, but also areas where we remain as owners in the long term, Kristian Mørch says. Within ro/ro Clipper Group is the owner of Seatruck Ferries that sails between Ireland and Great Britain, and the special thing is that Seatruck Ferries entirely sails with driverless trailers. - Where our competitors have chosen to mix passenger transport and trailer transport, we have trailers exclusively. This gives a quite different cost structure and a different efficiency. Besides, for the haulage contractor there is of course the advantage that he does not need to have the whole truck and a driver on board the ferry for nine hours. Instead, the driver can deliver a trailer, drive back and get the next one, Kristian Mørch says.

the Danish state owns the other half. Danish Ferries that is running the ferry services to Bornholm, Samsø, Langeland, Fanø, and Bøjden-Fynshav, has been through a turn-around, but it is actually going quite well now. The other part of Clipper’s ferry business is a block of shares in Mols-Linien amounting to 30 percent. This is, however, a passive investment in the sense that Clipper Group is not in any way involved in the business procedure of Mols-Linien. - Originally, the idea was to combine the two units, Danish Ferries and Mols-Linien, but it was not possible, Kristian Mørch says. Retiring from cruise ships and tankers At the time of writing Clipper Group is selling their last tankers and the cruise ships may also be parted with in the future.

Sticking to Danish Ferries Clipper Group owns 50 percent of the Danish Ferries, and

‘

within dry cargo in spite of the market being challenging after the crisis. We have had profit in Clipper Bulk broadly all the way throughout the crisis, Gary Vogel says.

Actually we have done quite well within dry cargo in spite of the market being challenging after the crisis. - Gary Vogel, CEO Clipper Group

Daily news on www.maritimedanmark.dk

Page 15 /

danish

Maritime magazine

- As to the cruise ships as well as the tankers we have been in the situation, where we were the owners while other people were the operators. However, if you look at our other business areas, we are actively involved in the operation. So from a strategic perspective we do not want business areas, where we do not have the ultimate contact to the client, and where we cannot add value to the operation. Therefore, we have decided to retire from both business areas, Kristian MĂ¸rch says.

Newbuildings on their way Within dry cargo, which Clipper Group as it appears will have as its principal business area, there are newbuildings on their way. In excess of the just below 100 dry cargo ships, primarily within handysize and supramax segments, the shipping company has nine dry cargo newbuildings coming. But reaching a determined number of ships in the fleet is not important for Clipper Group. It is rather about making use of the opportunities that arise in the market.

At the time of writing, however, Clipper Group still has a small handful of chemical tankers left, and the same goes for the cruise ships. Clipper Group has not determined any definite deadline for selling the remaining ships, and it does not really matter if a sale drags on as far as mid-2015.

- We constantly work to make the fleet grow, but we are not focused upon reaching a certain number of ships. It is more about deriving benefit from the opportunities that emerge. Our fleet has an average age of five years, so we operate a very modern fleet, Gary Vogel says.

danish

Maritime magazine

/ Page 16

Daily news on www.maritimedanmark.dk

Clipper Group is not known for having many ships under Danish flag, as the main part of the fleet is registered to the Bahamas, but it cannot be excluded that future newbuildings from Clipper Group will be sailing under Danish flag. - The Danish International Ship Register has become more attractive, so when we order newbuildings it is certainly an option to use the Danish flag, Kristian MĂ¸rch says. Heading for better times within dry cargo The dry cargo market has generally grown less than expected by Clipper Group. The demand for coal has been lower than expected, the economic growth in China has abated, and besides Clipper Group has been affected by an export ban in Indonesia. So, a string of factors have

contributed to the fact that 2014 has not developed as expected. However, the company expects the last quarter of the year to be considerably better and all things considered the company expects better days ahead for dry cargo. - The freight rates are getting better. We have long-term contracts that secure our earnings, and we use the derivative markets for futures to control the earnings, but the market is, as for so many other shipping companies, the dominating factor determining if we are able to make money or not, Gary Vogel says. - One should not become too self-assured when it goes well, and on should not panic when the market is down, for both asset prices and earnings are characterized by cyclic movements. Naturally, we believe in the fundamental conditions. If not we would not grow in that business, but the performance relative to the market is the key, Kristian Mørch says.

Ship RepaiR One StOp SeRvice FRedeRikShavn, denmaRk - the beSt Ship RepaiR centRe in euROpe

• 4 dOckS up tO 215 x 34 m. • cRaneS up tO 100 tOnneS • RO-RO pieR with cRane FOR mObiliSatiOn OF all veSSel typeS • nO RequiRementS FOR uSe OF eitheR tug OR pilOt • tOp quality, cOmpetitive pRiceS and deliveRy On time • azimuth pit in all dOckS and dOuble pit in dOck 4

www.ORSkOv.dk visit our website for information about facilities and contact details

orskov Yard is dnv-Gl triple certified in accordance with the followinG standards: iso 9001, iso 14001 and ohsas 18001

Secure the best solution for your Newbuildings With our engine care newbuilding package, you are sure to sleep well at night knowing your newbuilt vessel’s engines will be running smoothly!

20 % nt discou

Newbuilding Offer Save 20% on our special newbuilding package until December 2014.

Daily news on www.maritimedanmark.dk

Page 17 /

danish

Maritime magazine

DANISH MARITIME DAYS

By Finn Bruun

The maritime world ready for intelligent growth

arly October more than 200 of the most influential business leaders, experts and opinionshapers in the global maritime industry met in Copenhagen at the Danish Maritime Forum to unleash the full potential of the business. It was very interesting to see, that representatives from countries that may not always be the best of friends like China and Japan - that argue about islands, and Denmark and Russia - who sanction each other, all came together for a meeting. But the differences were put aside in the desire to create real change for shipping, which are forced to think in new and concrete ways to lift the gigantic task of moving 20 billion tons of goods. The expectations for the international shipping to make a difference are high. Not only does the global maritime sector have to implement themselves as a key factor in the world economy, some even believe that they should lead the way for international cooperation on trade - with focus on accountability, service and growth. The name of the session was“Unleash the potential” and aims to unleash a potential for growth and creating wealth, based on using a healthy and competitive international business model in a context where the public and private interactions are present.

Bottlenecks Japan’s Deputy Transport Minister Hiroshi Moto stressed that Japan is still one of the world’s leading maritime nations. He mentioned globalization and growing trade, and stressed that shipping should not be a bottleneck for the growing demand in the world. He regarded it as Japans duty to contribute with solutions. Victor Olensky, Russia’s Deputy Transport Minister, was critical of the overly restrictive IMO regulations, which affect the shipping activities - and he warned that there may not be enough low sulfur oil in a few years. At the same time, he promised to limit the bureaucracy for international shipping north of Russia. In a slightly longer comment, Minister of Transport Tuck Yew Lui from Singapore called the participants in the meeting an “all-star team”. He stated that the center of the world, not only in production but also in consumption will soon be in Asia. Of the ten most important shipping centers in the world, there are five in Asia, three in Europe, one in the Middle East and one in the United States.

The Opening Ceremony on October 7th was carried out by HRH Crown Prince Frederik, Business and Growth Minister Henrik Sass Larsen and The Danish Shipowners Association CEO Anne Steffensen - on behalf of the organizers. There were also opening comments from some of the invited ministers.

Tuck Yew Lui predicted that there will be a change in fuel for shipping from oil to LNG. Although Singapore has plans to expand the port to 50 million TEU and later to 65 million TEU, he was not convinced that it will be easy for the ports to secure funds for the necessary infrastructure. He also considered the problem of providing manpower for the port an important issue and stressed the importance of robots and automation.

China’s Deputy Industry Minister Su Bo emphasis was on China’s increasing growth in shipping and shipbuilding. He invited to work with partners around the world both in development and technology - and in particular he stressed the cooperation with Denmark.

Cheap ships are expensive In his keynote speech, Nils S. Andersen, CEO of AP Moller-Maersk stated that Maersk Line waits as long as possible to buy new ships, even though they are cheap and there is a 4.5 percent container growth in Maersk every year.

danish

Maritime magazine

/ Page 18

Daily news on www.maritimedanmark.dk

PHoto: Danish Maritime Days

The desire to lift the entire international shipping to a higher level is what lay behind the ambitious Danish Maritime Forum project, which happened in the creative environment of Docken in the the Northern harbour of Copenhagen. This was also a chance to underline Denmark’s position as one of the maritime centers of the world.

But the situation is not how it used to be, when inflation helped. Today, inflation is gone and it’s not as attractive to invest in ships considering the cost running them. He pointed out that shipping is not as profitable as other industries, and mentioned overcapacity, financing and lack of scrapping. Nils Smedegaard warned against protectionism and believed that free trade is not as strong today as one could hope. The international co-operation negotiations are moving along slowly: Doha, the US-European TIPP partnership negotiations, US-Asia negotiations and the WTO negotiations are all far behind. Sluggish free trade The lack of free trade leaves expensive barriers and if we remove just half of the barriers

to world trade, it would result in a growth of 15 percent and an increase of five percent in worlds GDP, now that’s a lot of jobs, he said. Nils Smedegaard Andersen emphasized the shipping companies’ responsibility to society and the environment and stressed that innovation still needs to be exploited fully. Good ideas for solutions The result of the two days of discussions was what CEO Anne Steffensen of The Danish Shipowners Association and Chairman of the Danish Maritime Days, describes as a catalog of ideas that have already begun to take shape. They can be used by the maritime industry to create real change. These solutions were the result of intense working groups of the marine leaders and experts,

who discussed the problems at hand and added their personal contributions. Anne Steffensen concludes: • With the top-level representatives from government, industry and others, the Forum has broken down the traditional silos and established a unique opportunity for a stronger cooperation between key maritime stakeholders, which can lead to real change. • D ue to the rather unique environment of these intense-working workgroups, expert presentations, panel discussions and personal reflections, the Forum succeeded in producing a range of possible solutions to the challenges that the global maritime industry is facing, partly as a result of the estimated doubling of the world trade in 2030.

Back again next year Danish Maritime Forum will return in 2015 and will then also include a Youth Forum. The Forum will also return in 2016, and it remains to be seen, whether a recurring event with a desired strong focus on applicable solutions to the maritime industry, will be a reality. The forum is a part of the Danish Maritime Days, and is a public/private partnership between the Danish Maritime, the Danish Maritime Authority and the Danish Shipowners Association. A number of private funds in shipping are financing the entire project, which had a total of 70 events this year.

Daily news on www.maritimedanmark.dk

Page 19 /

danish

Maritime magazine

DANISH MARITIME DAYS

By Finn Bruun

The battle against pirates has to be won on land Piracy is developing into something more than small boats attacking passing ships. In West Africa, a wide range of maritime crime is flourishing. This is a threat to both the maritime traffic and the economic development, just waiting to get started in the region.

This was made clear in the conference â&#x20AC;&#x153;Maritime Crime and the Effects on Growth and Development in the African Regionâ&#x20AC;?, which was held in Clipper House in Copenhagen, as part of the Danish Maritime Days. The shipping companies and the international naval forces in East Africa off the coast of Somalia and in the Gulf of Aden, has control of the piracy situation. Attacks on ships are now rare and mostly ineffective. Representatives from the shipping companies, naval officers, experts and members of organizations stated: This is a success - but the danish

Maritime magazine

/ Page 20

problem is not gone completely, it is only on standby. The pirate-business model is established and investment to get started is low. It does not require much more than a boat, some Kalashnikovs, income-hungry people and a hostage negotiator. So even though shipping companies have had success with the combination of Best Practice precautions and armed guards, and despite an extraordinary effort from international naval forces in the vast waters of the Gulf of Aden and into the Indian Ocean has proven effective, the fight is not over.

Daily news on www.maritimedanmark.dk

The fight has to be won on land and as long as a failed state like Somalia has so little to offer young people when it comes to jobs, the recruiting process for pirate ringleaders is extremely easy. Several of the speakers said that due to the staggering amounts of money that the companies spend on safe passage and the navy fleet-participating governments, including the Danish, are investing in naval presence - it is only a matter of time before they are tempted by the reduced threat level. But both the Danish navy and the EU will continue in 2015.

Danish shipping companies have around 100 vessels within reach of Somali pirates at all time, while the figure off West Africa is around 30. West Africa is Nigeria West Africa has moved up the maritime concern list. Not only is the number of attacks on the rise but also the brutality of these is alarming. Although hostage taking of sailors at hijackings is not as bad as in the Somalia region, the maritime crime is more diverse in West Africa. There are both robberies, theft of goods and extortion and the entire situation is complicated. At the conference it was made clear that the only West African country involved in this is Nigeria. It is the largest African country with 180 million inhabitants and a candidate for the list of failed states. Corruption is in itself a problem when it comes to fighting crime. The political situation is also so severe that according to several of the speakers at the conference, it is directly reflected in the maritime crime. It is slightly higher at the moment, because various groups of maritime criminals are busy with the “helping” certain parties prior to the upcoming elections. Piracy Piracy really took off in 2008. The Somali pirates’ method of operation is hijacking against a ransom and the access to the market is very easy. Go to the ship; hijack it, negotiate hostages, get a ransom and start all over again on a new ship. Risk intelligences Director Hans Tino Hansen said in his speech, that the driving force behind stopping piracy has largely been the international naval presence. Not so much the passive escorting of merchant ships in the Gulf of Aden but what irritates the pirates and their investors has been that the fleets have gone after them right after they leave the shore.

Jan Fritz Hansen, DSA

All action taken by the shipping industry, like safety procedures, safety knowledge, intelligence, alertness and armed guards have also frustrated the pirates. However, it is not only the guards who have brought about this change and the cooperation among international fleets has also contributed to it. In his assessment, the latest development is connected with the improved situation inside Somalia. Bombs, terrorism and so on were also much worse in 2007-08. Now they have been able to invest in businesses with lower risk and higher profit. The danger of being caught by the fleet grew and the defense of the ships worked and it has increased thee opportunities to invest in other forms of business. Hotel instead of a pirate boat Instead of money being invested in piracy, they now benefit hotels, restaurants, gas stations, transportation, trucks and trade. He estimated there are still some out there, but it is close to zero. The government is getting a better handle on things and although naval operations have been reduced, he expects the same level of activity as in 2015. - We must be realistic in our expectations on investments in the fight against pirates. Shipping companies will say: Yes, we must be vigilant, but we have to look at the commercial realities. - Four guards will quickly turn to two and we also fear that the ships that have been using guards have focused less on safety procedures. In that case we would be back to 2007, but it is very unlikely now. Today, we are not looking at an increase in piracy before the fleets disappear, or the ships alertness decreases. The politicians have to understand that it can all go back to the way they were before very quickly, unless we deal with the root of the problem. We cannot change things in 10 years maybe not even at 15, he said.

Lars Bangert Strüwe, Ministry of Defence

Epicenter After the situation has calmed down in Somalia, the focus has been primarily on West Africa. Piracy and maritime crime is not anything new here and the activity has been high since 2007. - Angola and the surrounding areas have has a small amount of piracy but 92 percent of maritime crime is from West Africa. This is the epicenter and Nigeria accounts for 71 percent of all the crime, said Hans Tino Hansen. - The Nigerian criminal networks organize almost all of this crime and most attacks happen 150 miles off the Niger Delta. The range of attacks is greater, namely as far away as a mother ship can operate. There are currently two mother ships. So where the Horn of Africa is black/white, Nigeria is fifty shades. From actual port piracy to simple theft and that is how it has always been. Kidnapping and ransom money mostly effect western and Asian ship’s officer, taken hostage from ships. In Nigeria, a hostage release typically takes only 2-3 weeks. There are currently five people that are held hostage. In Nigeria, tanker hijacking is frequent. They steal the goods and pump them into their own tankers. It is much easier than to take an entire ship. This is not a Nigerian invention but the method has been imported from Southeast Asia, where it’s all about palm oil. From time to time these operations lead to armed robbery when they go wrong. For example, if the ship does not have the amount of material that they expected. When it comes to attacks on tankers, 100 percent of them happen at night, while attacks on offshore rigs are 50 percent during the day and 50 during the night. The violence is extreme and murder is committed in cold blood, especially when the incidents happen locally in the country. International trade is usually not as target of this

Hans Tino Hansen, Risk Management

Daily news on www.maritimedanmark.dk

Page 21 /

danish

Maritime magazine

DANISH MARITIME DAYS

violence. They have no problem killing Nigerian soldiers and guards but they usually do not kill crewmembers. Hans Tino Hansen concluded that the situation is different in East and West Africa. The same methods used in Somalia cannot be used in Nigeria. Massive illegal bunkering Francoise Morizor, Bourbon Interoil, Nigeria stressed that Nigeria is where the majority of the problems come from. Especially illegal bunkering, which he estimates is over 400,000 barrels per day, more than the entire oil production in Cameroon. The cost of maritime security is huge and necessary as long as there is still a clear connection between the community and the criminal networks.

Sailors today are alert. They may be worried, but are ready and have learned to react. They expect support for themselves and their families and to get their life back afterwards. Shipping companies and the state is expected to this. But this is not always the case, he said, pointing out that there are 1.2 million international seafarers. There are still 37 hostages in Somalia, some have been there for 4,5 years, some for 4 years and 27 for over 2 years on land. At home, the house may be empty because the family has sold the furniture to survive. Therefore, Peter Swift wants a fund to help them when they get home. - Don’t forget them, he said.

Peter Swift from the Maritime Piracy Humanitarian Response Program stressed the need for seafarers affected by piracy and their families to be cared for. This applies to the 200.000 who annually enter the Gulf of Guinea, where safety regulations are not similar because different companies each have their own mindset.

Faster city growth than in Asia Africa is both the youngest and the oldest continent. It has great potential for trade but it also involves risks. In the year 2100, 10 of the 20 largest populations in the world will be in Africa, said Alex Vines from the analysis company Chatham House.

Most sailors and their families are happy with the armed guards on board, even if they are not included as part of the crew.

- No. 1 is India, no.2 is China, no. 3 is Nigeria, no. 4 is United States and no. 5 is Tanzania. The youngest populations are in Africa and

danish

Maritime magazine

/ Page 22

Daily news on www.maritimedanmark.dk

the oldest are in Europe and Asia. At the same time, Africa has a massive urban growth. They are evolving faster than in Asian cities and a lot of people are moving to the cities. According to Alex Vines, the problem is that the population growth is so large that the current GDP of 6.7 is not enough to create the necessary jobs. It requires around 12-14 percent. There are several successful countries such as Ghana and others who are better off but weak neighbors make it difficult to build coalitions. He found that Africa’s main problem is the political leadership, or lack of it. 71 percent of the attacks in the Gold Coast and Guinea come from Nigeria, where it is currently about raising money for elections in February. It is gunpowder politics, oil theft and illegal bunkering or the so-called “blood oil”. It will be election time in Bukina Faso and Tanzania soon and that will add to the insecurity, said Alex Vines, who, without any irony, praised Denmark with the embassy in Nigeria. - Congratulations Denmark, you have finally got an embassy in the world’s third largest country, he said.

On the way up Sub-Sahara has enough problems with crime, terrorism, etc. But Africa is a continent on the rise, so we should not exaggerate the security problem. But the crime has to be solved on land and has to happen in cooperation with the countries and with an understanding of their traditions. Nigeria is a strategic challenge but requires action on the ground. Lars Bangert Struwe, a university professor who has just been hired by the Ministry of Defence, highlighted the positive approach: - We must find positive ways to develop here. We know that there are pirates and corruption. How can we go forward and find a positive way to deal with these problems, he asked. Therapeutic hunting Others found it therapeutic to chase pirates off the coast of Somalia but not a very stable solution. Some said that UN resolutions were easy to make but difficult to implement. The demand was to discuss Nigeria with Nigeria. Several participants found it important to work more with the regions governments

The situation is different in East and West Africa. The methods used in Somalia cannot be used in Nigeria. - Hans Tino Hansen, Risk Management

about the importance of maritime trade and offshore safety. They want to emphasize the importance of maritime security. There are 20 coastal states in West and Central Africa and a political solution is necessary, bilateral and multilateral. Rear Admiral JĂźrgen Ehle from the EU military committees working group said that the EU naval force, which Denmark is not a part of because of opt-outs, since 2008 has ensured the transport of more than 2 million tons of

food aid and protection of vessels off Somalia. He says that there have been no successful attacks for a long time. The Danish Rear Admiral Frank Trojahn emphasized that Denmark has been very active with warships and Challenger aircrafts, and played a role in NATOâ&#x20AC;&#x2122;s Operation Ocean Shield. Present off Somalia is also warships from Canada, South Korea, India, Pakistan and China.

HYBRID PROPULSION SOLUTIONS Innovative and reliable hybrid propulsion solutions suitable for a variety of vessels.

for more information, visit us at:

In partnership with our distributor

Daily news on www.maritimedanmark.dk

Page 23 /

danish

Maritime magazine

DANISH MARITIME DAYS

By Finn Bruun

Installation vessels are no longer in short supply Growing interest in renewable energy and CO2 savings have given the offshore wind energy a tremendous boost and kick started a great deal of Danish maritime activity. Much still depends on the continued political will to invest in wind power but the lack of installation vessel seems to have faded out. Now it is all about venturing further out into the water, getting the logistics in place and training the right people.

ottlenecks and innovation were among the themes of the conference on Offshore Wind Shipping and Logistics, which is as part of the Danish Maritime Days and was held at Aalborg Universityâ&#x20AC;&#x2122;s Department in Copenhagen. The organizer - Thomas Poulsen - is working on a new ph.d. project between the Danish Maritime Fund and Aalborg University, to improve methods for shipping and logistics companies transporting elements to wind farms. He believes that the strategies used by companies are often too short termed and he tries to combine research in shipping, logistics and supply chains with research on wind turbines. Aalborg University has conducted a feasibility study which shows that it is possible to build offshore wind turbines with 20 megawatts. The conference was opened by Flemming Jacobs, who is also Secretary General of the Danish Maritime Days. He spoke of a connection between the maritime wind power activities along with shipping and the fact that Denmark has the EUâ&#x20AC;&#x2122;s highest growth in shipping. In recent years, the installation of new offshore wind turbines has experienced a tremendous growth, in the range of 12-15 percent annually until 2020. The number of offshore wind farms, especially in Northern Europe, is expected to increase in the coming years. Along with that

danish

Maritime magazine

/ Page 24

comes many different types of vessels used to install and service wind turbines and that is a great opportunities for Danish companies and their employees. A need for specialists The shipping company Swire Blue Ocean has noticed this trend and has reacted by building the huge Pacific Orca and Pacific Orprey installation vessels. Lars Blicher, who is responsible for Swire Blue Oceans activities in the North Sea, did not see the lack of tonnage that everyone has been talking about. However, he saw a need for specialists, ships and crews that can operate farther away from the coast. - Today, the owners of offshore wind farms are calling the shots on the start date for the projects, and therefore it is important for us to keep the capacity going all the time without gaps between the projects, he said. Previously, it was easier to overlook the supply chain. When he started a few years ago, there was only one jack-up and that was the Resolution from A2Sea. At that time there was not much available, so based on the expected demand in the industry for suitable ships, it was clear that here was a bottleneck.

Daily news on www.maritimedanmark.dk

Page 25 /

danish

Maritime magazine

DANISH MARITIME DAYS

Huge turbines - But others noticed it too, so different vessels came into the industry. They all looked alike, with a crane and jack. So when we ordered the Pacific Orca and Pacific Osprey, the mantra of the industry was deeper water, farther from shore and larger installation to reduce costs. They have new tonnage crane sizes of 1200 to 1500 tons and they all have grid legs so the can work at greater depths, said Lars Blicher.

The politicians’ commitment - The question is, whether the vessels will adapt to the market, or vice versa. It largely depends on the political commitment to offshore wind and energy prices. As shipping company owners, we are building ships that we expect will last for 25 years. So before we invest on a bigger scale, we need to know if there is a market. Otherwise you have to write off the ships faster and it will increase the rates. - Maybe the answer is vessels that can both work in the offshore oil/gas and offshore wind industry. But the problem occurs, when the oil price goes up and investments are made in new fields. The need for ships would be greater there and payment is usually better than in the wind sector. This problem would put pressure on the installation capacity. But as of right now it is not an issue. - It takes 2-3 years to build a ship from design to finish, so hopefully the politicians come up with plans beyond 2020, said Lars Blicher. The high waves There are also bottlenecks for service vessels today. Jimmy Thyregod Kristensen from World Marine Offshore found his first bottleneck when the company was just starting. He discovered that vessels in Britain were protected by local regulations, which made the whole process more expensive.

Lars Blicher, Swire Blue Ocean: - Today, we have new tonnage crane sizes of 1200 to 1500 tons and they all have grid legs so they can work at greater depths.

- We are now entering XL monopile (long tubes) and jacket area (steel-skeleton with more legs) and larger wind turbines. But elements of 1.000 tons or more causes problems. The Jacket-structure is complex, and monopiles are easier to build, but they are a challenge during installation, especially for the ships. One would think that the market would separate installation vessels into two groups, depending on whether they can install the foundation and turbine and those who cannot, but I don’t see that happening, he stressed. - The nacelles and blades are actually not the problem. It is the turbines, which can be up to 90 meters long and weigh 900 tons in order to hold the new and larger nacelles. Some ships can handle all this, but they cannot venture very far out to sea. This is an area where we will see a bottleneck, he estimated.

danish

Maritime magazine

/ Page 26

- But the difficult part for the service vessels is that goods and people for the installations have to be transported in different weather conditions. The challenge is to have a ship that can withstand extreme weather conditions and still be able to supply, even when the waves are massive. We have now increased the number of days that can be work, from 200 to 300 days. We are striving to be more efficient and ideally we would like to work 365 days a year. But this requires the right kind of equipment, says Jimmy Thyregod Kristensen. WMO has four ships that can handle the transport of goods and passengers, despite waves of between 2.5 meters and 3.5 meters, but Jimmy T. Kristensen believes that the biggest bottleneck is the lack of skilled people. Digital DONG When it comes to a different kind of technology, control via data quality, DONG is far ahead with its own advanced concept for offshore use. DONG has developed its offshore engagement from scratch, right from procurement, operations, energy trading and delivery to

Daily news on www.maritimedanmark.dk

the electricity consumers. The company has developed four road maps and combined, they are an ‘umbrella’ with a lot of strategic initiatives in collaboration with the industry and universities. - We want to bring new technologies forward in our projects, says Anderson G. Pihlkjær from DONG’s planning department. We have many sites, they are very complex and become even more so when our partners are present. With multiple sites and projects, there are many questions from all over Europe like: “How long will you be at this position”, “We need an overview immediately” and “how can you compare Anholt and the UK”? - But the data was not available. So the question was how we with multi contracting could gather data from all parts of the logistics chain. I realized that a digitalization of DPR, Daily Progress Reports, which used to be done on paper, was the way to go, said Anders Pihlkjær. We are tracking it all - Now it is all digital in one access point. At first, we tried to implement digitization and reporting on one ship. They wrote everything they did down and signed everything. We then asked the suppliers to sign their report to make it a contractual document of what was actually going on. We then synchronized the activities in a cloud solution, where we were able to pull data to see how quickly our contractors could perform, all the way from the lift of the wings, to jacking up and sailing. We track it all, he said. - This way, we have an overview of things. We can keep a close eye on the supplier and help the industry. We measure everything and try to understand the activities. That is where we get the most important thing, one true reporting. It is not enough that suppliers say “everything went fine in the project” he says, explaining that the idea is that everyone should be looking at the same data and reach the same conclusion. - We can use this for problem solving, to further develop the next project and for sharing knowledge. - Wind and weather is unstable, but with this we can make things more predictable and stable, so that the project becomes more robust. It has also reduced the number of claims, because everyone has signed the report, he says. The knowledge sharing not only gives DONG success, but helps the entire offshore wind industry. He stresses that the system also helps suppliers to constantly make improvements.

BY Finn Bruun

Seafarers are a prerequisite for growth This requires that the rules are the same all over the world, so there is no competition at lower standards. Henrik Berlau from 3F believes that quality shipping has moved down the agenda while Pia Voss, Danish Shipowners Association believes that the ILO has the power and the means to monitor the progress. American shipping company representative calls for “the owner of the corner office”. - We expect more and more from our global seafarers, but we must also offer them something in return, in terms of improved service, education and legal protection, said Neil Bellefontaine, professor and Acting President of the World Maritime University, located in Malmö. He was the keynote speaker at one of the many international conferences under Danish Maritime Days, namely “The Seafarer as part of Global Quality Shipping”, which was held in 3F’s union building in Copenhagen. It was created as a joint event between the Danish Maritime Authority, CO/Sea, 3F and Danish Shipowners Association, with the Danish Maritime Fund as co-sponsor. - Previously it was believed that the sailor’s

conditions were low pay, long hours, difficult working conditions, dangerous situations and boredom. It can be tiring to be out at sea. Therefore it is important that we collaborate to improve conditions, and the seafarers must have a central role in the center of planning, he said. He highlighted the importance of maritime research, as a prerequisite for continued growth in shipping and stressed that education is crucial. - The key is more knowledge through education, of not only the ordinary seamen, but also officers, shipping managers, lawyers, government officials, people in the state port control and teachers, he said. The point was that everyone should be educated in order to benefit international shipping.

According to him, there has often been a tendency in the industry to overlook the importance of those who man the ships, although competence is a prerequisite for maritime growth. Neil Bellefontaine announced that next year’s theme of World Maritime University will be Arctic navigation plus maritime education. He also found the efforts to improve safety and working conditions in good agreement with the CSR efforts in many companies. Improvements with MLC The conference especially focused on the MLC, the comprehensive UN convention that regulates the working conditions in the maritime industry.

Daily news on www.maritimedanmark.dk

Page 27 /

danish

Maritime magazine

DANISH MARITIME DAYS

It originates from ILOâ&#x20AC;&#x2122;s beginning and has been through an ongoing framework that is widely accepted around the world, although it is not yet ratified by all. MLC was adopted in 2006.

In the MLC 2006, nearly 40 conventions became one. They provided the main principles while the details were included in the guidelines. The convention is updated regularly.

UN Labour Organization, ILOâ&#x20AC;&#x2122;s Maritime senior specialist, Brandt Wagner stressed that the ILO has been up and running for 90 years and he believes that globalization and the later decades of ship management has been a key change.

- We must keep a safe and level playing field, he summarized. He also stressed the importance of enforcing the convention, along with the expansion of the labor certification, which is becoming a necessity for companies that want to be seen as quality companies at state port control.

The update and the unification of the many rules, regulations and recommendations in 2006, was a milestone in the efforts to improve conditions in the global maritime transport. Two things are particularly important: to improve working conditions worldwide and to ensure a level playing field. - Before there were rules in many specific areas, medical, security and so on. It was a patchwork, and some countries ratified all of them, for example, Denmark, while others took only some or none. There was no level playing field, as those who abided by the rules had to compete with companies that did not. In a way, the working conditions were a competitive element with a tendency to pull everyone in a negative direction, he said.

danish

Maritime magazine

/ Page 28

Today, 64 countries have ratified, and three are close. In particular it is countries in Asia, the Middle East and Latin America that are behind in terms of the convention. Not there yet MLC interact with IMO conventions such as Solar, STCW and MARPOL. And the ILO has a wider access to control countries efforts with for example IMO. The MLC Convention requires that it is under constant supervision. - It is still a question if it is monitored well enough. A level playing field is not complete yet. But I think we are so close and I think that it will be universal in the near future. The Labour Certificate has improved seafarersâ&#x20AC;&#x2122; rights and the owners

Daily news on www.maritimedanmark.dk

now need a certificate. There is still a difference between the good shipping companies and those who are not willing to follow the rules. Those people cannot be allowed to have benefits, said Brian Orrell from Seafarers Rights International. As a chief negotiator, Joseph Cox, CEO of the Chamber of Shipping of America, have seen many companies profit from the organizations efforts over the years. He openly acknowledged that his goal in the past was to not go along with the conventions of the ILO. However, the shipping companies soon realized that it would not be profitable for them in the long run. They then reached out to the seafarers, which according to him had a hard time believing their own eyes. But who is responsible for the convention? Who is the owner? Joseph Cox asked. - When I was a cadet, the ship was named after the owner or his family. If you had any questions, you went down to the corner office and asked the owner. Then we established companies to get access to money, through shares. The owner was still the major shareholder and he of course wanted to reduce costs and have an efficient organization. But he also knew that a ship had to be maintained and staffed by experienced people. He was the one that kept the ship going. Today,

we have ownership through large companies with lots to shareholders who do not know the maritime aspects. Their primary concern is to get their investment back and staff training is not a top priority, especially if the stock is owned by a hedge fund far away.

because it is difficult for sailors to strive towards improvements, when the industry is in a situation where the cost of transport is not reflected in the operations of the company. It’s all up to aid and financing from governments and especially after globalization, we have seen a decline.

Boss, don’t do it! - People in shipping companies should be able to go to the corner office and say: Boss, we have to do this or we have to do that. We have to invest in ships, in people and education. It is going to cost us money but otherwise we will not be successful. We must not abandon commitments, he said, and mentioned how politically difficult it is to ratify the MLC Convention in the United States, who have just been given a 1.000 page document with all the regulations.

Quality shipping - If we want quality shipping back, where seafarers also get their share, we must ensure that the industry is not left in heated competition that does not cover the cost. We are hardly seeing any European seafarers in international navigation, he said.

Henrik Berlau is a negotiating secretary in 3F Transport and represents the seafarers. He perceived the MLC as a minimum standard.

- When the MLC was decided in Geneva, it was and is still on the agenda. I do not believe that MLC is a minimum standard, but a global standard. It is important that we in a global environment and in a global industry also have global standards. However, it is a delicate balance. ILO should realistically be able to implement the global standard, and in Geneva, we accepted national implementation. However, it is difficult to overlook the different ways countries that

- We must break it down into a minimum-MLC and quality shipping. How do we get quality shipping back on the agenda? If everyone is on the minimum standard, it is good in the sense that we have stopped the race to the bottom, but we must also improve standards. I am concerned,

Vice President Pia Voss from Danish Shipowners Association does not believe that quality shipping has ever been absent from the agenda.

have implemented. It’s always a balance, but we believe that the ILO has the tools and power to monitor the correct implementation of global standards, she said. Collaboration across organizations and authorities - I think that the conference was a success, says Birgit Sølling, DMA, who was the conference moderator. - It was important that it was a collaboration between organizations and authorities. This was evident in the people presented and they provided a meaningful picture of international regulatory systems and the implementation of these. - We did not only focus on rules and what authorities and shipping companies. We were also presented with a vivid tale of how work is carried on board the ships, as a young engineer explained about his the reality on board. It was a new approach. The question about the seafarers and decent conditions on board, have to be seen as a shared responsibility and I think that the shipping company representatives heard what was said, Birgit Solling Olsen stated.

Daily news on www.maritimedanmark.dk

Page 29 /

danish

Maritime magazine

DANISH MARITIME DAYS

By Finn Bruun

Offshore wind reduces dependency on Putin We must ensure that investors have confidence that offshore wind power will regain its importance, says Bent Bendtsen. He will work to ensure that renewable energy is maintained as a priority in the new, maybe a little more skeptical EU parliament.

ormer Danish Minister of Trade and Maritime Affairs, Bent Bendtsen, is currently a member of the European Parliament. At the conference Offshore Wind Shipping and Logistics he linked the maritime and energy sectors together and promised support for these two Danish key areas that can create further growth. - I was the Minister of Maritime for seven years and the Minister of Energy for four years. As Deputy Prime Minister, I was pleased to combine these two sectors in order to create growth and jobs. I now have the same task in the EU, namely to create growth and greater prosperity, said Bent Bentsen. Who for the past five years has been in the Parliaments ITRE Committee on Industry, Research and Energy, and focuses on enterprise policy in Brussels on a daily basis. - I believe we have to think outside the box and not look at the various key industries as isolated. They are connected and there is a great potential in projects that demonstrate the possibilities of cooperation between different industries, he said.

danish

Maritime magazine

/ Page 30

We have the expertise - On the one hand, we have the Danish shipping that transports a billion tons of cargo annually and is technologically advanced, with a great reputation. On the other hand, Denmark is a world leader in wind energy and on the forefront of offshore wind farms. We have the expertise, he said, and used Esbjerg as an example, as they have been working with both for a long time. - In total, the Danish wind industry has a global market share of 25 percent of the newly installed capacity. More than 60 percent of Danish industryâ&#x20AC;&#x2122;s total sales are for export, he said, and acknowledged the political responsibility of making the connection between these key sectors visible. He also pointed out that research can contribute to growth and jobs in various stages of the production process and mentioned the EU Horizon 2020, which will connect research and industry to provide knowledge. - There is no doubt that renewable energy and wind energy is heading towards a great future

Daily news on www.maritimedanmark.dk

on a global level. There is a growing demand in the emerging economies in the East, who are in need of new facilities. Both the EU and the United States are renewing their existing facilities in the coming years, he stated, knowing that climate discussions in the EU will concern coal and nuclear power. Putin cannot have the final say - There are still climate skeptics, also in the EU Parliament. The good news is that there is a growing awareness to preserve our planet, although the economic crisis has made it more difficult to talk about climate change. The climate debate will certainly not die out in the coming years. - We also have an alarming conflict in our backyard, namely Russiaâ&#x20AC;&#x2122;s aggression in the Ukraine. As a politician in Europe I want to emphasize that the EU should not depend on Putin. The EU should not be as dependent on Russian gas and oil from the Middle East as we are today. Annually, the EU imports 545 billion euros worth of energy. It is not only a threat to the

European economy but it is also a threat to European security. We know that Russia will do everything in his power to split the European countries on energy issues, he said. Bent Bendtsen wants an internal energy market. - This is something that we really have to work towards in the next five years. In this context, we will need more renewable energy especially from wind power. We must become better at utilizing our own resources in Europe and that will hopefully make way for new projects. In the new commission, Jean Claude Juncker has nominated a Vice-President of energy. It is a step towards making the EU less dependent on imports from other countries.

The EU must not forget Bent Bendsen is a little concerned that renewable energy will be forgotten in the new parliament. - I think the key to convincing my colleagues in parliament, is to make them aware of the need for security of supply. It is, with this shipping and logistics project in mind, also important to see things from a business perspective in relation to the competition. If wind power is to regain its great potential, it is important to focus on the entire industry.

Former Minister and current MEP Bendt Bendtsen will ensure binding goals for renewable energy and CO2, so investors can see stable opportunities.

- Political will and support for a green transformation alone is not enough for offshore wind power to succeed. The industry has to focus on innovation and new solutions. If the industry and their service providers can improve shipping and logistics in this area, it can be an important tool to make wind power more attractive to investors, said Bendsen.

companies may be difficult for many industries. Wind and transport is no exception. We cannot compete on wages, and neither should we. What we need to do is to create more value in our products and services. The wind industry is also being challenged and I strongly believe that innovation and creating more value is the key to developing the industry even more, said Bent Bendtsen.

â&#x20AC;&#x2DC;

- For the past five years in parliament, I have strived for goals in renewable energy and CO2 emissions as well as energy efficiency. We know that investment security is fundamental for a green transition. If investors are not sure that there will be a demand for renewable energy, the necessary investments in wind power will not be present.

Competitive aspect - There is also a competition perspective. We know that competition from Chinese and Asian

I believe we have to think outside the box and not look at the various key industries as isolated - Bent Bendtsen, MEP

Daily news on www.maritimedanmark.dk

Page 31 /

danish

Maritime magazine

Live oil prices, energy news & analysis See how the OMJ Marine Service can help your business Oil & Forex Prices

Research, News & Analysis

Delivered by Innovative Systems

Live Rotterdam oil prices

Oil news, comment & analysis

Live oil prices website

ICE Futures prices

Dow Jones Energy Newswires

Price updates by email & SMS

Historical oil prices

Oil fundamental data

Smartphone & tablet service

Forex prices

Oil price & forex technical analysis

Ticker and wallboard service

FREE TRIAL

Request a FREE trial of the OMJ Marine Service

www.the-omj.com

www.the-omj.com/marine

Tel: +44 (0)28 6632 9999