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NORSTAR SHIP MANAGEMENT PTE LTD

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NORSTAR SHIP MANAGEMENT PTE

PROFILE

BOUTIQUE solutions to

MODERN shipping problems

Singapore-based Norstar Ship Management Pte Ltd has delivered bespoke ship management solutions since 2009. The company’s mission statement is to deliver safe, efficient, and reliable transportation and logistics services that enable its partners to perform their operations at the highest standards. With an emphasis on seafarer welfare, the company’s vision is to operate in a better and more sustainable world through innovative and collaborative partnerships. Article by Jordan Yallop.

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orstar Ship Management Pte Ltd was founded in 2009 as the ship management arm of the Norstar Group. The larger Norstar Group was established in 1998 by Chris Bonehill, originally as a ship brokerage company based in London specialising in sales, purchasing, and newbuilds. In 2005, brothers Chris and Tom Bonehill joined forces to expand their global operations with Chris being based in the west and Tom in the east. Since then, Norstar has expanded its operations in Singapore, Westport, Yangon, Tokyo, and soon the Middle East. Since 2020, Norstar Ship Management has been helmed by Managing Director Dr Lars Gruenitz, who started his career in the construction of naval submarines. Dr Gruenitz moved on to various senior leadership positions, across a variety of different companies within the marine sector before taking up his role at the company. As investors in ships themselves, the people behind Norstar have a deep understanding of their clients’ needs around the complex nature of ship management. Norstar Ship Management’s experts help clients reduce costs, improve efficiency, and either scale up or down.

An owner’s approach to ship management The owners of Norstar have invested in ships themselves in the early 2000s and they were disappointed with the poor services that they received from some of the bigger third-party ship managers. The brothers were faced with instances where there was a lack of quality in the service or a lack of transparency in the practices. Dr Gruenitz said: “So they decided it was time to be in charge of their own quality.” The owner’s approach to ship management means Norstar treats every vessel under their care as if they are the owners. Dr Gruenitz said: “We own tankers ourselves, so we understand and empathise with the owners. Whether those are our ships or our clients’ ships, we look after them well and maximise the owners’ earnings.” When it comes to performance, Dr Gruenitz said: “Integrity is one of our values, which means if we commit to a budget, then we’re able to deliver." Norstar Ship Management currently has 24 vessels under its management. Self-described as a boutique manager, the company has a smaller fleet so that extra care and attention can be paid to each and every need that the customer may have. Inside Marine

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NORSTAR SHIP MANAGEMENT PTE

PROFILE

Dr Gruenitz explained: “Our fleet numbers dropped a little bit during Covid because some of the shipping companies had to sell off their ships. The ships that we have added last year are mainly bulk carriers as we believe bulk carriers need the same highquality standard as tankers moving forward. “Traditionally, Norstar Ship Management is seen as a specialist in product and chemical tankers; that’s our bread and butter. I want to diversify that, so we have taken in bulk carriers and gas carriers, predominantly for crew management in the last few months.” When talking about the difference between a boutique-style manager and a larger concern, Dr Gruenitz said: “If you work with a big manager, then if there is any problem on the ship you might be able to talk with the fleet manager and he may or may not have an answer for you. With us, our customers have really close interaction with both the commercial team and the operations team. To continue the personalised management style, we typically have a conference call once a month, where I’m also actively involved.”

Environment, Social and Governance (ESG) at the core Since his tenure as Norstar Ship Management Managing Director began in 2020, Dr Gruenitz has made significant developments, starting with restructuring. Digitalisation has been a main focus area of the developments implemented, whereby the company uses data to get real time visibility on its operations. This enables the company to make corrective actions with greater speed and effectivity. Dr Gruenitz said: “When you talk about ESG there’s also a people component. What we have focused on is leadership development for the full team, running extensive leadership training 6

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for the organisation. Since the first year and in the second year, we have really concentrated on the mental and physical wellbeing of the crew.” At Norstar Ship Management, the wellbeing of its people is a top priority; the company has the belief that ensuring a healthier and happier workforce is essential for productivity and safe operations. Dr Gruenitz said: “We all heard and read about seafarers being stuck onboard ships for months and months during the pandemic. It was then we thought it’s time to invest in mental resilience, and also medical support. So, at Norstar, we did two things. “First, we worked with the biggest company when it comes to remote medical services, International SOS. We have engaged Med Sea, which is basically the maritime service part of International SOS, which means any medical issue onboard our ships will be taken care of remotely, quickly and professionally. This really helped during Covid because our sailors had not been allowed to go to a doctor. “Secondly, we have also begun working with a company called WellAtSea, a Danish company dedicated to physical and mental wellbeing. Combined, the services added by these two companies has positively impacted in keeping our crew happy and healthy.” With Dr Gruenitz in the driver’s seat, Norstar is embarking on a new chapter towards green shipping. “We are also getting ready to be part of making a big green change in shipping,” he said. “We’re working closely with engine manufacturers to see what new ships must look like, because I believe it will be bigger than changing from steam engines to diesel engines. There’s lots of new technology coming up, which is super interesting.”

We are also getting ready to be part of making a big green change in shipping Myanmar crew Norstar’s crew pool is predominantly made up of Myanmar crew. The company has a dedicated crewing office in Yangon, Myanmar, with training facilities. Over the years, Norstar has successfully cultivated a strong team of seafarers managed by competent shore support staff made up of ex-captains. This allows them to provide a pool of well-trained and competent crew suited for every vessel’s needs. Dr Gruenitz said: “There are a lot of misconceptions about Myanmar as a country. Many people think ‘Oh, there are strict protocols in place,’ or ‘Cannot do much.’ But the truth is even during Covid-19, and given its political situation, the seafarers can still move freely around the world.” The recent steep increase in Chinese crew costs makes Myanmar crew even more desirable now. Dr Gruenitz added: “The good thing is Myanmar is a seafaring nation. When it comes to quality factor, the performance of Myanmar’s crew is top-notch.”

Investing in the future Norstar Ship Management has made investments recently in areas such as digitalisation and ESG (Environmental, Social, and Governance). “Digitalisation was one of the investments that we will continue in, so we’ve invested in data analytics, and we invested heavily in cybersecurity. We also updated our systems for new emission monitoring systems,” said Dr Gruenitz. The other major investment the company has completed is a new office location. At the end of last year, the company moved to a new office in Singapore that has been designed with the wellbeing of the workforce in mind. Dr Gruenitz explained: “We designed this office to make our staff comfortable after Covid. For instance, we invested into ergonomic tables; they’re all height adjustable. We have a much more collaborative workspace, and a much greener office. I think it really improves happiness and productivity.”

Staying true to course Talking about the future of the marine industry with regards to emissions, Dr Gruenitz expressed his view that ammonia will win the race for new cleaner burning fuel. Ahead of this future, the company is actively getting ready for the change and is preparing to provide training in this new area. Working with international organisations, Dr Gruenitz is already planning for new training programmes centred around the use of ammonia fuel. When it comes to the future of Norstar Ship Management as a company, Dr Gruenitz explained it best: “My vision is not to reach the 500-ship mark – that would completely change the soul of what we do. The management style must stay the same whether it’s our own ships or our customers’ ships. We look after them really well and we always maximise the benefits of our customer,” he concluded. n Inside Marine