Issue: 123/August
The magazine for maritime management
The weighting game doesn’t stack
up
Everyone in the whole supply chain needs to take ownership of checking and verifying the correct weight of shipping containers
Also in this issue: u Ocean pollution u Marine insurance u LNG as fuel
Issue: 123/August
Editor’s comments The mAgAzIne for mArITIme mAnAgemenT
‘‘
The big question is who takes ultimate responsibility for updating the paperwork and for verifying that the container weight is what is actually stated in the documentation
The weighting game doesn’t stack
up
Everyone in the whole supply chain needs to take ownership of checking and verifying the correct weight of shipping containers
Also in this issue: u Ocean pollution u Marine insurance u LNG as fuel
Chairman Andrew Schofield Editor Libbie Hammond libbie @ schofieldpublishing.co.uk
A weighty
Production Manager Fleur Daniels Art Editor/Design David Howard Profiles Editor Jo Cooper Staff Writers Andrew Dann Ben Clark Production dhoward @ schofieldpublishing.co.uk studio @ schofieldpublishing.co.uk Advertisement Administrator Tracy Chynoweth studio @ schofieldpublishing.co.uk
Business Development Director David Garner Operations Director Philip Monument Editorial Researchers Gavin Watson Rory Gallacher Jo-Ann Jeffery Andy Green Advertising Sales Joe Woolsgrove - Sales Director Tim Eakins Dave King Darren Jolliffe Gareth Stevens Mark Cawston
D
issue
ealing with the problem of overweight containers is covered in our lead story in this issue, and it’s not something to be taken lightly (no pun intended!) Over-weight and poorly stacked containers have been cited as the primary cause of a number of highprofile casualties, not least the MSC Naopli, which sank in 2007 off the UK’s south coast – there is also the very real risk faced by port workers who could be injured or killed because of the incorrect declaration of container weight. The article’s author, Sue Terpilowski OBE, the chairman of CILT Ports, Maritime and Waterways Forum, says the big question is who takes ultimate responsibility for updating the paperwork and for verifying that the container weight is what is actually stated in the documentation given that the cargo changes hands so many times during the shipping process. Do you have an opinion?
Editor: Libbie Hammond libbie@schofieldpublishing.co.uk
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Features
4 News Updates and announcements from the shipping and maritime arena
6 The problem with plastic We need to recognise and address the effects that throwing away plastics has on our oceans and marine life
8 The weighting game doesn’t stack up According to Sue Terpilowski, It should not be the sole responsibility of the Port to check and verify that shipping containers are correctly weighted
10 Change is coming In 2016 changes will be introduced to The Insurance Act 2015 and the new provisions will have everyday relevance to the maritime industry
12 The fuel of the future The LNG supply landscape is undoubtedly becoming less ambiguous. Keeping informed about the latest developments in the market is essential
12
Profiles 15 Port of Cork 18 Brittany Ferries 23 Caledonian MacBrayne 26 Aluminium Marine Consultants 30 ChartCo
30
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34 Clorius Controls 37 Port of Antwerp 40 Rederij Wantij 43 SeaStar Management 46 Greenore Port 50 ร sterreichischer Lloyd Seereederei (Cyprus) Ltd
53 Hรถegh Autoliners 56 Docking Solutions 58 Ciramar Shipyards 60 B. Rekencentra NV
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Maritime news Major milestone marked uNorth Star Shipping has reinforced its fleet of next generation vessels after taking delivery of its new ERRV, the Grampian Devotion, in Aberdeen. The latest vessel represents the eighth and final D-class IMT-950 Emergency Response and Rescue vessels (ERRVs) that the company has had specially built as part of a major £110 million investment programme. North Star Shipping has added seven other D-class IMT-950 ERRVs to its fleet since 2011 with the company’s investment plan due to be complete over the next year with the launch of two F-class IMT-958 multi-role ERRVs, the Grampian Fortress and Grampian Freedom. The D-class vessels, which are 50 metres in length, are outfitted as a minimum with one daughter craft, one fast rescue craft and state-of-the-art rescue facilities. The F-Class vessels, which are slightly larger at 58 metres long, feature diesel electric propulsion via twin Azimuth Stern Drives. They will also be equipped with daughter craft and fast rescue craft as well as being able to transfer and store limited deck cargo and provide offshore locations with fresh water and fuel if required.
Advanced functionality uPSM Marine’s rugged and reliable ICT 1000 level transmitters have been selected for the Canadian Coast Guard Fleet as part of the country’s multi-billion dollar national shipbuilding programme. Twenty-five ICT 1000 transmitters, including cable junction boxes, are to be installed on a new 63m, 3212 tonne Offshore Fisheries and Science Vessel. This first ship is one of three that will replace existing vessels on the east and west coasts of Canada; once complete all will carry out scientific research and ecosystem-based management. Seaspan Marine Corp, who specified PSM, had its Vancouver shipyard chosen as the Canadian Government’s long-term partner for building non-combat vessels, under the National Shipbuilding Procurement Strategy. The advanced functionality of the ICT 1000, which allows for simple installation and commissioning, was a key factor in Seaspan’s selection of PSM, alongside their satisfaction with the existing service. Offering the highest possible standards in terms of performance and reliability, the ICT 1000 can be fully programmed for measurement range, functionality and diagnostics. On the OFSVs, the transmitters will monitor all fuel, oil, water, service and waste tanks onboard. Compatible with all common marine liquids and cargos, the ICT 1000’s pioneering capacitive measurement cell is manufactured in robust and durable ceramic, is fully submersible and features an onboard micro-controller to precisely monitor pressure-related output.
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Grampian (from left to right): Grampian Devotion Master, Malcolm Trott, with Craig Group chairman and managing director, Douglas Craig, and North Star Shipping managing director, Callum Bruce
Remote cleaning uAuthorities at the Danish ports of Copenhagen, Kalundborg and Fredricia have granted permission for GAC EnvironHull’s pioneering, diver-free, underwater HullWiper solution to be used within their ports and outside of holding areas. These approvals represent the latest expansion of the service into the Scandinavian region, following the approval of the Remotely Operated Vehicle (ROV) to clean hulls at Gothenburg, Sweden in 2014. HullWiper is the response of global shipping, logistics and marine services provider GAC to growing demand for environmentally sound and costeffective hull cleaning solutions to optimise vessel performance at a time when ever more stringent environmental restrictions are coming into force. Operationally, the ROV can clean up to 2000m of hull per hour without causing any damage to antifouling surfaces, due to brushless technology, which uses adjustable pressure water jets to remove marine fouling. As no divers are involved, cleaning can take place alongside a vessel during loading or discharging operations, and any risk to life is significantly reduced. HullWiper cleans about five times faster than conventional cleaning methods with divers, reducing cleaning time by approximately half. The entire process is in line with the GAC Group’s stringent Health, Safety, Security and Environment (HSSE) and compliance policies, as well as all local and regional environmental regulations. Residues and harmful marine growths captured during cleaning are disposed of in an environmentally friendly manner instead of being discharged into the sea as done using traditional methods.
Quality counts uAluminium Marine Consultants (AMC) celebrated its acquisition of ISO 9001 quality management certification by placing four High Speed Support Vessels (HSSV) under build simultaneously in its new Isle of Wight UK building hall. By mid-June, the hull of the first 21m vessel for wind farm industry service provider Cwind was up to the gunwales, plating was underway on a second 21m craft and work had just started on both 23m HSSVs in the four vessel order. The 21m symmetric hull catamarans are being built to MCA classification Category 2. This new generation of high efficiency vessels has been designed in-house, and financing can now be delivered in-house via packages provided by Peter Curtis with DS Marine. The 23m catamarans are Category 1 boats classed by Bureau Veritas. Again primarily intended for use as wind farm support vessels, they also have capability for dive and survey ROV operations either overboard or through a moonpool. With AMC ever striving to enhance quality control, the company’s commercial director Rob Stewart said the yard’s certification to ISO 14001 and 18001 should be announced very soon.
Maritime news Programme goes live uPeel Ports, owners and operators of the Port of Liverpool, has achieved a major milestone in its multi-million investment programme to transform the port into Europe’s first semiautomated container terminal. The Navis N4 Terminal Operating System (TOS) and AutoGates are now live and fully operational following the construction and commissioning programmes. The new TOS and ten-lane AutoGates are the latest phase of new infrastructure in the company’s £300 million redevelopment project to expand and develop Liverpool2, consolidating its position as the UK’s largest transatlantic deep-sea port and container terminal. The £9.7 million information systems investment platform, which has been undergoing rigorous testing in recent weeks, will deliver faster turnaround times through a streamlined process from landside or quayside entry to exit. The fully automated AutoGate system uses state-of-theart identification technologies to manage gate operations, ensuring that all containers and trucks are automatically identified before entering or exiting the terminal. Advanced OCR (optical character recognition) and line-scan camera technology (automatically detecting seal presence) link with gate operating software that seamlessly integrates to Peel Port’s existing terminal operating software, Navis N4, and Customer Access Portal (CAP). The security process is further completed using biometric fingerprint identification to further validate driver/load identification and enhance security.
2000th vessel completed
Prime location uMarine engineering company Atlantic Pacific Marine has opened a new site in Fort Lauderdale in order to meet its ever-increasing workload and customer base. Atlantic Pacific Marine (APM) is headquartered in Cardiff (UK) but operates globally. In the past year alone, the company has completed dry dock projects and refits in the Grand Bahamas, Australia, Germany, the UK, Singapore, Italy, and of course, Miami. Its clients include Carnival Australia, Carnival UK, Princess Cruises, P&O, Wärtsilä, Crystal Cruises and Disney Cruise Line. That popularity within the marine sector and its follow-on business growth has already resulted in APM having to relocate its HQ to a bigger site in Cardiff less than 24 months ago. With the opening of the Fort Lauderdale site, the company looks set to go from strength to strength. The site is in a prime location within the harbour itself, and includes fully staffed offices and 6000 sq ft of fabrication workshop. The company has been formally set-up with the US Authorities and is called Atlantic Pacific Miami. Senior APM Project Manager Mark Meredith is heading up the new operation.
uRapidly expanding Norwegian boat builder Maritime Partner is set to reach a major landmark in its history as it completes the construction of its 2000th vessel since founding in 1994. Maritime Partner CEO Peder Myklebust said the Aalesund based company is ‘immensely proud’ that its 2000th boat will be delivered to its long-standing client and fellow Norwegian company the shipbuilder Kleven. “This milestone comes at a hugely exciting time for Maritime Partner as we plan growth at home and overseas,” he said. “It is very fitting, however, that our 2000th boat should go to Kleven and be installed on Maersk ship. Maritime Partner’s success has been built on long standing loyal relationships. And Kleven and Maersk are very much at the heart of our business together with Vard, Farstad Shipping, Havila and the Swire Group. These are the companies that create the basis of what we do and enable us to invest further, build larger boats and expand our operations and workforce which has grown to 60.” www.shippingandmarine.co.uk - 5
Marine pollution
The problem with
plastic
Plastic debris in the ocean - a global environmental problem. By Professor Richard Thompson
Plastics have considerable potential to reduce the human footprint on our planet. However, to maximise the benefits plastics can bring it is essential that we address environmental issues associated with their production, consumption and disposal [1]. Globally in excess of 280 million tonnes of plastic are produced annually. A key benefit of plastics is their durability; yet around one third of production is of disposable packaging that is discarded within a year of production. As a consequence plastic debris are accumulating in the environment, as well as in regulated landfills [2]. Seventy-five per cent of all marine debris is plastic, which contaminates habitats form the poles to the equator and from shorelines to the deep sea [3]. It is apparent that the distribution of debris is not uniform; and that it can be transported to locations far from population centres [5]. This debris can persist for decades however patterns of abundance over time are far from clear; some studies show an increase while others show no clear trend. It has been suggested there may be as yet unrecognised ‘sinks’ where considerable quantities of plastic are accumulating [3]. Plastic debris is unsightly, has negative effects on the economy and can present a hazard to mariners [1]. As a consequence considerable expense is invested in removing debris from ports and shorelines [6]. There are reports of encounters between marine debris for over 660 species and 80 per cent of encounters are with plastic debris. There is evidence of physical harm to individuals; with entanglement leading to lacerations and mortality. For species like the northern fulmar the majority of some populations (95 per cent of individuals examined) have plastic in their digestive tract [8]. While there is no evidence of population level consequences it should be noted that it is very difficult to link population level changes to single causative agents and so a lack of evidence does not necessarily imply a lack of effect. In addition to physical effects there are concerns that ingestion of plastic debris could lead to toxicological harm either as a consequence of the accumulation of persistent contaminants from seawater, or the release of chemicals that were incorporated during manufacture (e.g. plasticisers, flame retardants and anti-microbials).
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Polyethylene and other plastics are known to sorb persistent organic pollutants form seawater and these can become orders of magnitude more concentrated than in the surrounding water [9]. These chemicals can then be released in the gut where desorption is facilitated by surfactants [10]. Mathematical modelling indicates that the role of plastics in the transport of contaminates to organism may be relatively small compared to other pathways [11, 12]; however recent work indicates simple modelling approaches may be inaccurate as a range of factors such as pH and temperature will influence the equilibrium of chemical between seawater, plastic and the tissues in an organism. For example, a warm-blooded animal would have a greater potential to receive contaminants from plastic than a cold blooded organism. Further work to establish the relative importance of plastics as a vector under differing environmental and physiological conditions (temperature, pH) and in relation to uptake via other pathways including feeding and respiration is therefore required in order to more fully understand the potential for plastics to act as a vector in the transport of chemicals to organisms. With respect to the impacts of plastic in the environment there are three important additional considerations: 1) From the perspective of sustainable use of resources, we use around eight per cent of world oil production to make plastic items, yet around a third of these items are discarded within a short time frame. Plastics are inherently recyclable, so by recycling end-of-life plastic it is possible to reduce the accumulation of debris while at the same time reducing our demand for fossil carbon [1]. 2) Plastic items are
important to society; however there is something fundamentally different between the problem of marine debris and other current societal dilemmas. Unlike turning on an electric light or taking an aeroplane journey, the emission, in this case of debris to the oceans, is not directly linked to the benefit. So we can obtain the benefits from plastic items without there being a need for end-of-life plastics to accumulate as debris in the oceans. 3) Together with other scientists, representatives from industry, policy makers and NGOs, I frequently attend meetings focused on marine debris problems and solutions. While there may be discussion and sometimes disagreement about the relative importance of the various impacts; there is typically universal consensus to reduce inputs of debris to the ocean. So in summary, marine debris is damaging to the economy, to wildlife and the environment, it is wasteful and unnecessary and we are all agreed it needs to stop. That being the case, then what are the problems that retard progress? In my opinion the problems that retard progress relate to prioritising solutions: who should take the action and if there are costs, who should pay? The solutions are well known they principally lie on land rather than at sea and in decreasing order of merit are: 1) reduce material usage – any reduction in the amount of new plastic produced will reduce the quantity of end-of life material that results, 2) reuse items – this will directly reduce the need for new plastic items and so also reduce the quantity of end-of life material, 3) dispose of end-of-life items properly - ideally recycle them, 4) recycle, since turning end-of life material back in to new items in a closed loop will reduce the accumulate on waste and simultaneously reduce demand for fossil carbon, 5) energy recovery via incineration – where items cannot easily be re-used or recycled, should be considered as a poor alternative to 1 - 4. Finally, but because it is overarching potentially most important we need to redesign, so for every plastic product consider, at the design stage, the hierarchy of options above in order to maximise the overall environmental footprint i.e. reduce use of fossil carbon and reduce the accumulation of waste by designing so that the eventual end-of life products can readily be used as raw material for new production. Such principles are gaining momentum, for example within the EU there is considerable interest in the philosophy of circular economy. There is public interest and response from industry, for example some supermarkets in the UK have voluntarily opted to reduce use of single use bags. There are also actions that unless used appropriately could work against these goals, for example use
of bio-based carbon from agriculture is seen as a sustainable alternative to fossil carbon. However altering the carbon source does nothing to reduce marine debris, and where arable land is at a premium a more efficient solution is to supply the required carbon by recycling our waste. Similarly designing plastic products so that they degrade / disintegrate more rapidly, can compromise the potential for product re-use, contaminate recycling and lead to rapid accumulation of fragments in the environment [1]. What is needed is policy led coordination, supported by sound science, to utilise the measures above to achieve change as efficiently and rapidly as possible. This will involve voluntary actions, incentives, taxes and education [2 ]. In particular there is a need to re-educate. My lifetime has been spent in a world with rapidly increasing production of disposable short-term products and packaging, and of durable goods that cannot be repaired or renewed. In short we are
living in a growing culture of throwaway living; there is an urgent need to recognise there is no such place as ‘away’. n Professor Richard Thompson is a Marine Biologist at Plymouth University. This article summarises the content of his presentation to the Royal Society of Chemistry for the Environmental Chemistry Group 2014 Distinguished Guest Lecture in March 2014. The text is based on his recent contribution to a perspectives article entitled: The challenge: plastics in the marine environment published in Environmental Toxicology and Chemistry earlier this year. Please refer to this article for a more comprehensive discussion on the topic and in particular the perspectives of those form Industry and Policy (see Environmental Toxicology and Chemistry, Vol. 33, No. 1, pages 5 – 10). For further information, email Richard at: rcthompson@plymouth.ac.uk.
Figure 1. Solutions to marine debris include: (a) measures to reduce the production of new plastics from oil, here an example showing how small changes in product packing reduced the weight of packaging required by 70 per cent while (b) re-useable plastic packing crates have reduced the packaging consumption of the same retailer by an estimated 30,000 tonnes per annum; (c) recycling, here bales of used plastic bottles have been sorted prior to recycling into new items, such as plastic packaging or textiles. Measures to reduce the quantity of plastic debris in the natural environment include: (d) educational signage to reduce contamination via storm drains and (e) via industrial spillage together with (f) booms to intercept and facilitate the removal of riverine debris (photographs a and b, and associated usage statistics) courtesy of Marks and Spencer PLC; (c) courtesy of P. Davidson WRAP; (d and e and f) courtesy of C. Moore, Algalita Marine Research Foundation) (source: Thompson et al.2009)
1. Thompson, R.C., et al., Plastics, the environment and human health: current consensus and future trends. Philosophical Transactions of the Royal Society B 2009. 364: p. 2153-2166. 2. STAP, Marine Debris as a Global Environmental Problem: Introducing a solutions based framework focused on plastic, in A STAP Information Document. 2011, Global Environment Facility,: Washington, DC. p. 40. 3. Barnes, D.K.A., et al., Accumulation and fragmentation of plastic debris in global environments. Philosophical Transactions of the Royal Society B, 2009(364): p. 1985-1998. 4. Ryan, P.G., et al., Monitoring the abundance of plastic debris in the marine environment. Philosophical Transactions of the Royal Society B, 2009. 364: p. 1999-2012. 5. Law, K.L., et al., Plastic Accumulation in the North Atlantic Subtropical Gyre. Science, 2010. 329(5996): p. 1185-1188. 6. Mouat, T., R. Lopez-Lozano, and H. Bateson, Economic impacts of Marine litter, 2010, KIMO (Kommunenes Internasjonale Miljøorganisasjon). p. 117. 7. Secretariat of the Convention on Biological Diversity and Scientific and Technical Advisory Panel GEF, Impacts of Marine Debris on Biodiversity: Current status and Potential Solutions, 2012: Montreal. p. 61. 8. van Franeker, J.A., et al., Monitoring plastic ingestion by the northern fulmar Fulmarus glacialis in the North Sea. Environmental Pollution, 2011. 159(10): p. 2609-2615. 9. Mato, Y., et al., Plastic resin pellets as a transport medium for toxic chemicals in the marine environment. Environmental Science & Technology, 2001. 35(2): p. 318-324. 10. Teuten, E.L., et al., Potential for plastics to transport hydrophobic contaminants. Environmental Science and Technology, 2007. 41: p. 7759-7764. 11. Gouin, T., et al., A Thermodynamic Approach for Assessing the Environmental Exposure of Chemicals Absorbed to Microplastic. Environmental Science & Technology, 2011. 45(4): p. 1466-1472. 12. Koelmans, A.A., et al., Plastic as a carrier of POPs to aquatic organisms: A model analysis. Environmental Sciecne and Technology, 2013. 47: p. 7812-7820. 13. Meeker, J.D., S. Sathyanarayana, and S.H. Swan, Phthalates and other additives in plastics: Human exposure and associated health outcomes. Philosophical Transactions of the Royal Society B, 2009. 364(2097-2113). 14. Oehlmann, J., et al., A critical analysis of the biological impacts of plasticizers on wildlife. Philosophical Transactions of the Royal Society B, 2009. 364: p. 2047-2062.
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Container shipping
The weighting game doesn’t stack
up
Port’s cannot be solely responsible for checking and verifying container weights “It should not be the sole responsibility of the Port to check and verify that shipping containers are correctly weighted. Everyone in the whole supply chain needs to take ownership,” says Sue Terpilowski, Chair of the Ports, Maritime and Waterways sector of the Chartered Institute of Logistics & Transport (CILT).
Sue Terpilowski OBE
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Commenting on new regulations to enter into force in 2016 which will see the mandatory certificated verification of container weights prior to loading onboard an export vessel, Sue says: “It cannot just be the Port since it has no contractual role to intervene and stop a box being loaded, although it can provide accurate data that can pinpoint irregular declarations. Everyone – shippers, packers, hauliers, and warehousemen – has to take ownership.” The issue of overweight containers has been a key subject for CILT’s Ports, Maritime and Waterway since March 2013 when member organisation the TT Club invited cargo owners, shipping lines, hauliers and ports to a roundtable to discuss the controversial regulation. Members supported and agreed with the need
for an early, accurate way of determining the actual weight of the container, since there have been some ‘freighting incidents’ where incorrectly declared container weights have resulted in capsizes, dead port handlers and significant RTAs. Over-weight and poorly stacked containers have been cited as the primary cause of a number of high-profile casualties, not least the MSC Naopli, which sank in 2007 off the UK’s south coast. “That’s the stark reality. That is the fact. But what is less clear is at which point in the transport chain the mandatory weighing would take place, given that it is too late when containers are being loaded at the port as the law would have already been broken on the road or rail journey to the port,” Sue says. She adds: “There is compelling evidence to why the accurate weighing of containers is necessary,
just take a look around nearly every container terminal and you will find a good number of damaged boxes after falling off lifting equipment, rolling off loaders or falling from great heights due to in adequate weight details. There is the also the very real risk faced by port workers who run the risk of either being killed or injured because of the incorrect declaration of container weight. “So why does this practice continue?” she asks. “Is it ignorance, poor supervision, poor policing, lack of training or simply too much paperwork? All of these are valid points but everyone has a part to play and all parties must be willing to upset their customers and refuse to the carry boxes of those who regularly miss-declare their cargo weights.” Sue, who received an OBE in the Queen’s New Year’s Honours list, says the big question is who takes ultimate responsibility for updating the paperwork and for verifying that the container weight is what is actually stated in the documentation given that the cargo changes hands so many times during the shipping process.
“An overweight box puts lives and vessels at risk the moment it starts on its journey to the port. The shipmaster compares the weight of the cargo stated in the manifest, but if the deadweight indicated by vessel draught marks points to an enormous discrepancy, it starts to make nonsense of his stability calculations. “We can’t criminalise the haulier, the train operator, or the ship’s master for accepting it on-board when there are so many parties interacting with the container, each having their own view and all passing the buck onto someone else.” Recalling ICHCA Technical Director Captain Richard Brough’s comment at Multimodal last year, where he estimated that up to 20 per cent of containers are misdeclared, Sue is not surprised that IMO has been mobilised into action to verify container weights prior to loading. “But I strongly believe that it cannot be at the port – this has to be far too late. It has to be near the start of the process but cannot be laid at the door of the haulier who, unless they have to use a weight
bridge early in the journey, are already putting their and others lives at risk if they are taking a container heavier than they believe it to be. Should it not be the onus of everyone in the supply chain? “The UK government favoured pre-verification, using the calculated weight method rather than physical container weighing but hopefully by 2016 technology will have caught up and something more reliable will become the favoured solution. We cannot continue putting lives at risk, on roads, ports and sea; this issue is far too critical for this.” CILT with other organisations, see training as a vital element alongside finding the true weight of a container and will be offering training course to all concerned in the supply chain. “The sector must see the need to educate their staff on the importance of making sure that the correct weight is declared as we must only accept a zero tolerance position on this otherwise we will be putting lives at risk on road, rail, port and sea and this is not acceptable. But again it should be stated that the port is too late, it cannot be where we put the onus on as it has no legal standing with the box as far as its origin is concerned and cannot stop it from leaving, though it can provide the data to help others make decisions on consignments and longterm behaviour,” says Sue. “Cargo owners, hauliers and shipping lines need to work together to make sure everyone really understands the importance of this issue not financial but safety and lifesaving. 2016 should not be the start - we should be making sure in 2015 we begin and implement the process. If we save one life it will be worthwhile.” n Sue Terpilowski OBE is CILT Ports, Maritime and Waterways Forum chairman. The Chartered Institute of Logistics and Transport (CILT) is the professional body for transport, logistics and the supply chain. CILT is the focus for professional excellence, developing the most modern techniques in logistics and transport and encouraging the adoption of policies that are efficient and sustainable. www.ciltuk.org.uk
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Marine insurance
Change is
coming Changes to disclosure and warranties provisions under The Insurance Act 2015. By Tom Hodges For the past 109 years, the Marine Insurance Act 1906 (‘the MIA 1906’) has provided the statutory codification of the principles that underpin English insurance law, in terms of both marine and non-marine, consumer and business insurance. So entrenched are these principles that amendments to the MIA 1906 over the past 100 years have been very limited in their scope and effect, despite significant changes and developments in the way that the insurance industry, and the businesses that it services, operate.
Tom Hodges
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Over the past ten years, the Law Commission has been consulting underwriters, assureds and other interested parties on ways that English insurance law should be reformed, to make it more relevant and user-friendly for life and business in the 21st century. It was decided to divide the reforms into two Acts: one for consumer insurance, and one for business insurance (with limited areas of overlap). The Consumer Insurance (Disclosure and Representations) Act 2012 came into force on 6th April 2013. The body of law that which will apply to business insurance is the Insurance Act 2015 (‘the new Act’), which received royal assent on 12 February 2015. The new Act makes several key amendments to
long-standing principles set out in the MIA 1906. This article focuses on two of these areas, in business and consumer contracts: l Disclosure; and l Warranties These points will have a real impact to businesses, the way they place their insurance and on the way that claims are dealt with.
1. Disclosure in business and non-consumer contracts Fair presentation of risk The existing law places an onerous duty on an assured to disclose to the insurer, before cover is agreed, every material circumstance, which the
assured knows of, or ought to know of. A ‘material circumstance’ is one, which would influence an insurer when considering whether to cover a risk, or when fixing a premium. The insurer is under no obligation to make further enquiries of the assured, even where it sees a clear gap in the information provided. As explained in more detail below, failure by an assured to disclose everything of relevance can have severe consequences. The new Act replaces the relevant provisions in the MIA 1906 with a new ‘duty of fair presentation’. Under the new law, an assured will still have a duty to disclose material circumstances about which he knows or ought to know (and not to make misrepresentations), or, failing that, ‘sufficient information to put a prudent insurer on notice that it needs to make further enquiries.’ In contrast to the ‘old’ position, there will now be an onus on insurers to make enquiries where they perceive there to be a lack of information, and in the absence of such enquiries, the new Act sets out a number of categories of information that an assured will not be obliged to disclose, for example information within the insurer’s knowledge, or that ought to be, or is presumed to be in their knowledge. The new Act also gives a steer on the knowledge that an assured ‘ought’ to have, as being the ‘knowledge of senior management or individuals responsible for the procurement of insurance’. The assured is required to carry out a ‘reasonable’ search of available information before presenting a risk to underwriters. In summary, the new Act introduces a number of new points for a Court to consider when assessing whether an insurer’s liability under a policy is affected by an assured's alleged non-disclosure. Proportionate remedies Arguably the most significant change of all under the new Act relates to the remedies available to insurers for non-compliance by assureds with their duty of disclosure under the MIA 1906. Under the current law, any failure by an assured to comply with its duty of disclosure will give rise to a right for an insurer to completely avoid the policy. The new Act provides a more proportionate remedy (unless the non-disclosure was made deliberately or recklessly) based on what would have been done had the presentation been fair. For example: l If the insurer would have agreed to cover, but charged a higher premium, it may reduce any pay out proportionately; and l If the insurer would not have agreed cover, it may not pay out but must return the premium to the assured (unless the assured has behaved fraudulently).
2.Warranties Warranties in insurance policies are promises made by an assured to an insurer. The consequences under the MIA 1906 for an assured that breaks a warranty promise are harsh and can lead to an insurer legitimately refusing a claim for a trivial mistake, even where the breach is subsequently remedied, or where it has no relevance to the actual loss giving rise to a claim. Once a warranty has been breached, an insurer ceases to have any liability under the policy. Suspensive conditions Under the new Act, a breach of a warranty will result in the suspension of cover during the time that an assured is in breach. However, once that breach has been put right, cover will resume. In addition, an insurer will not be able to escape liability where the breach of warranty does not increase the risk of the loss that actually occurred. Conclusion To summarise the key provisions: l The new Act imposes certain limits on the scope of disclosure that assureds are required to give before a policy is agreed (though where in doubt, it is safer to disclose than not to); l The remedies for failure to disclose a material circumstance are more proportionate than they were under the MIA 1906; l The same applies in respect of breach of warranties – cover will be suspended pending remedy, rather than cancelled permanently; and l Where the breach of warranty has no relevance to the loss, the assured will still be covered (subject to any other relevant circumstances). This is a summary of two of the areas of reform under the new Act. There are several others. These provisions, and the other sections of the new Act most likely to have general, everyday relevance to the maritime industry, come into force in August 2016. n
Tom Hodges is an Associate at Birketts LLP. Birketts is a full service, top 100 UK law firm, ranked in the top tier by the Legal 500 for its shipping practice. Whether you are an insurer, a P & I Club, a shipowner, a charterer, a financier or a port authority, Birketts has specialists who can advise on a wide range of shipping and logistics issues. www.birketts.co.uk/shipping
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LNG
The fuel of the
future
LNG: Play the long game. By Grace Quinn
From January 1st 2015 all vessels traveling through Emission Control Areas (ECAs) are required to burn low sulphur fuels, such as Marine Gasoil (MGO) or Liquefied Natural Gas (LNG) as a replacement for Fuel Oil (FO). Alternatively vessels will need to stimulate exhaust gas scrubbing. All compliance options will affect the bottom line but not all may be feasible for each vessel or fleet.
Grace Quinn
Many believe MGO to be the most viable solution to the tightening of sulphur limits, particularly in the near term, with LNG and scrubbers requiring greater capital investment and longer-term payback. Recent macroeconomic changes have altered the current investment proposition, particularly for LNG.
LNG as a marine fuel Drivers Firstly, the US shale gas revolution has contributed significantly to the rise of LNG as an alternative to oil as a global marine fuel. Australia, East Africa, the Middle East and Russia follow closely as the largest gas resourcesi. Supply security and availability combined with its price advantage relative to MGO have allowed LNG to compete effectively in this market.
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The appetite for LNG has undoubtedly been propelled by its positive environmental credentials, in light of tightening emission regulations. Potential restrictions on wash water from open loop scrubbers and tightening NOx emission limits from 2021ii have further served to escalate LNG’s profile. Additionally, for those LNG Terminals that have witnessed a downturn in usage as a result of diverted cargoes to higher priced markets, the LNG bunkering market presents a new profit proposition.
Hurdles The biggest hurdle to LNG acceptance as a global marine fuel is the perception that there is a lack of infrastructure to support it. Ship owners have been reluctant to invest until they
LNG terminal, Barcelona
vessel serving the northwest European market. Outside of Europe, Fujairah has the potential to become an LNG bunker hub on the back of the Emirates LNG project. Likewise, Singapore is well placed to capitalise on this emerging market. China is also backing plans for a LNG bunkering network along the Yangtze River. LNG is a buyers’ market. Proposed supply capacity is likely to far exceed demand and with the mounting number of suppliers and facilities coming to the game, creates an exciting opportunity to negotiate terms with those eager to secure demand.
The long game
can be assured such infrastructure is in place. Alternatively, suppliers have sought evidence of demand, which for many has progressed to a commitment of investment. Shell, for one, has said it will make LNG available where needediii. LNG tanks take up around twice as much space in order to deliver the same degree of propulsive power that can be viewed as a hurdle by some. The upfront and increased capital costs (15-20 per cent) required to invest in LNG fuelled vessels or challenge existing fuel oil systems may also be seen as prohibitive. However, a cost benefit analysis that considers all compliant fuel options, both now and post 2020, may present LNG as the more efficient investment model for your operations.
Who has jumped on board? 2014 saw some notable vessels enter the LNG market and notable progress in the integration of LNG as a marine fuel. For example; l Approval in Principle (AIP) of the draft International Code of Safety for Ships using
Gases or other Low-flashpoint Fuels (IGF Code), providing much needed clarity on certain areas of new build vessel design. l IMO’s efforts towards a standard LNG bunker delivery note (BDN) including gas quality specifications. l ISO’s commitment to develop standards for LNG bunkering connectors. In Europe LNG fuelled passenger ferries and offshore support vessels have operated in Norway since the early 2000s. Rotterdam is now allowing ship-to-ship bunker deliveries, in addition to opening the LNG break-bulk terminal where bunker barges will be able to load. Antwerp already has the capability to refuel inland LNG barges by truck. Spanish, Finnish and Germany authorities too have endorsed various developments supporting LNG infrastructure. LNG demand is also growing in the Baltic region. Nordic LNG supplier Skangaas has confirmed a ship-to-ship bunkering deal with North European Oil Trade (NEOTT) and Shell has confirmed plans to build a sea-going LNG bunker
The global expansion of LNG trade will continue to facilitate the development of LNG bunker supply chains by capitalising on existing and future regasification and liquefaction terminals. The LNG supply landscape is undoubtedly becoming less ambiguous. For ship owners looking to make these decisions flexibility may be the answer. Choosing dual fuel engines that can burn both gas and fuel oil and can be converted to LNG will go somewhat towards risk mitigation. These are known as ‘LNG Ready’ ships. What is certain, is that those who maintain their ‘wait and see’ approach too long risk losing margin and bargaining power in the short term. Understanding how much value is at stake and keeping informed of the escalating LNG investments should provide some reassurance to those waiting for direction before investing in the future. n Grace Quinn is a Senior Consultant, Markets and Trading at Baringa Partners. Baringa Partners is an award-winning management consultancy specialising in: energy; financial services; telecoms and media, in the UK and continental Europe. It partners with organisations when they are developing and delivering key elements of their business strategy, as well as working extensively with government and regulators providing policy and advisory services. Baringa works with clients either to implement new or optimise existing business capabilities relating to people, processes and technology. www.baringa.com i Mckinsey.com, (2015). Capturing value in global gas: Prepare now for an uncertain future. [online] ii Mowat, I. and Buckland, A. (2014). Marine Fuel Regulations: LNG and scrubbing are long term solutions. Wood Mackenzie Insight, (March 2014), p.8 iii Bunkerworld.com, (2015). Bunkerworld News - ‘Chicken and egg’ conundrum for LNG bunkers development. [online]
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Profiles There are thousands of ships sailing the oceans today, transporting every kind of cargo.
The global fleet is manned by over a million seafarers of virtually every nationality and the companies involved in this sector are among the most technologically sophisticated of any in the world. The prominent and successful companies that are highlighted in the next pages of Shipping & Marine provide real world examples of how state-of-the-art technology, best practices and modern innovations are put into practice in the maritime sector.
Port of Cork Brittany Ferries Caledonian MacBrayne Aluminium Marine Consultants ChartCo Port of Antwerp SeaStar Management Rederij Wantij HĂśegh Autoliners Clorius Controls Greenore Port Ă–sterreichischer Lloyd Seereederei (Cyprus) Ltd Docking Solutions Ciramar Shipyards B. Rekencentra NV
Profile: Port of Cork
Reaching its
potential
T
he key seaport in the south of Ireland, the Port of Cork has developed its infrastructure and services over the years to become one of only two Irish ports capable of servicing the requirements of all six shipping modes: lift-on, lift-off (lo/lo), ro/ro, liquid bulk, dry bulk, break bulk and cruise. Facilities and operations are located primarily in five areas of Cork’s natural deepwater harbour, with bulk and general cargo operations taking place at City Quays; lo/lo, ro/ro and bulk services in Tivoli; ro/ro, lo/lo and bulks at Ringaskiddy, oil importation at Whitegate and cruise operations in Cobh. To ensure optimum efficiency and safety, the Port of Cork has undergone investments of €72 million over the last decade, with approximately ten million euros invested in enhancing cruise operations and the majority going on improving infrastructure and facilities in the commercial area. Reaching as far as St Petersburg and Central America, the Port of
Cork has an average of ten scheduled departures in a week. This includes Grimaldi Lines’ ro/ro and lo/lo vessels departing from Cork Ringaskiddy to Southampton and to the Mediterranean on a Sunday, Maersk Shipping’s lo/lo vessels departing from Cork Ringaskiddy and sailing to Tilbury, Rotterdam, Bremerhaven, St Petersburg and Central America, scheduled lo-lo vessels to Rotterdam, Le Havre, Antwerp and Brittany Ferries link from Cork to Roscoff. In addition to serving the shipping industry, the Port of Cork has also been at the forefront of meeting the exploration and development needs of various multi-national firms since offshore exploration first began off the south coast of Ireland in 1970. The benefits of choosing Cork as a supply base include a well-located deep water port, 24/7 unrestricted access, availability of bunkers, a secure area for hazardous material, a wide range of competent and experienced engineering service companies, a substantial open and covered storage
capacity and Cork International Airport in close proximity. Alongside shipping and offshore activities, the Port of Cork also offers cruising and ferry services and is the only port in Ireland with a dedicated cruise berth in Cobh. Moreover, the port can also handle cruise liners in Ringaskiddy Deepwater Quay and the City Quays. Offering passengers a unique experience, Cobh passengers disembark directly onto the quayside alongside the Cobh Heritage Centre, which provides an interesting illustration of Irish history over the last two centuries. Meanwhile, the town of Cobh is located within 100 metres of the cruise terminal and offers passengers a fascinating combination of history, archeology, flora and fauna, a visit to Fota Wildlife Park, shopping or simple relaxation. Although Cobh welcomes more than 50 cruise liners every year, few cruise visits generate as much anticipation by locals and passengers alike as the annual visit of the ‘Sea Princess’, which arrived on Tuesday www.shippingandmarine.co.uk - 15
Profile: Port of Cork
14th July 2015 with 1500 Australians and 400 Kiwis as part of a roundthe-world cruise from Sydney to Sydney. Departing on 22nd May, the vessel had visited over 20 ports by the time its reached Cobh, which went above and beyond to welcome both passengers and crew. Discussing this major visit, commercial director of the Port of Cork and chairman of Cruise Europe Michael McCarthy says: “It is a fantastic event and the Australians are really fond of Irish activity and up for the craic. We had a broad range of activities taking place and everyone involved is absolutely delighted with how the day went.” Elaborating further on the benefits for passengers visiting the Port of Cork, he continues: “What is unique about this port environment is that you step off the vessel and the nearest shop or pub is within 200 metres. The cruise industry is very important to us and we have nurtured it over the last 20 years, which has really paid dividends as we are now on the minds of cruise executives and itinerary planners when they look to Britain and Ireland at the start and end of the season. Alongside our Australian and Kiwi passengers, who have been visiting for Australia day since 2009, we also have American, British and German passengers visit us; these customers take up around 70 to 80 per cent of our passenger group, with French, Spanish, Italian, Canadian, Australian and so on taking the remaining 20 to 30 per cent.” With more than 100,000 passengers and 30,000 crew visiting Cobh every year, the cruise industry contributes greatly to the local economy and helps provide employment to the region, as Michael states: “If you look at a whole Photos: Aidan Fleming-Cork Harbour Pilot
season, where we anticipate 100,000 passengers and 30,000 crews will arrive and depart at the terminal, the investment into the local economy is going to be approximately 15 million euros. This is a phenomenal amount and, with indications that around 30 per cent of people that visit come back for a land-based holiday, a fantastic opportunity to showcase what Cobh and the greater CorkMunster area has to offer.” Aware that cruise liners and cruise companies are further investing in bigger and better ships, Michael is keen for the Port of Cork and other ports in Ireland to capitalise on this exceptional growth. “With 44 ships on order over the next seven years, ports in Ireland that are serious about staying in the cruise industry need to invest to be able to cater for these ships,” he confirms. Committed to preparing for future demand in all areas, the Port of Cork has also received planning permission for a 100 million euro investment at Ringaskiddy Port. ‘Phase One’ of this major project will include the construction of a multi-purpose berth at Ringaskiddy East, which will ensure Cork Harbour remains a key trading port that can accommodate large ships carrying a range of cargoes. Ringaskiddy East will also accommodate unaccompanied ro/ro freight as it will include a 200 metre long berth, a new container yard and marshalling yard. With ‘Phase One’ anticipated to be complete by 2018, the overall project will also facilitate the transferring of cargo handling activities from Tivoli and the City Quays on a phased basis, as Michael notes: “This project will have a cascade effect on the whole
development of the harbour as it will accelerate the move of ships from the city, where we currently have three quarters of a million tonnes of cargo, to deeper waters, which will allow the city to breathe and develop. “Ultimately, the Ringaskiddy Port redevelopment project will ensure Cork Harbour can handle the increase in container ships’ size and capacity over the next 30 to 40 years,” says Michael. “Unless we invest to accommodate the short, medium and long term needs of the region we will be left behind. We need to be a multi-modal port that allows us to be sustainable and flexible and reach our potential as a key player in the whole economic promotion and development of the South of Ireland and indeed the whole of Ireland,” he concludes.
Port of Cork
www.portofcork.ie • World-leading multi-modal port • Invested 72 million euros over the last ten years • Further major developments planned
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Profile: Brittany Ferries Port-Aven sailing from Plymouth
Strong
roots
C
elebrating 40 years in the business in 2013, wellestablished ferry operator Brittany Ferries has spent the last four decades developing an exceptional fleet and highly competent team of employees to ensure absolute efficiency and customer satisfaction. Offering the widest choice of ferry crossings to France and Spain, the company departs from Portsmouth to locations in France such as Caen, St Malo, Cherbourg, and most recently Le Havre. For journeys to Caen, it uses its cruise ferries Mont St Michel and Normandie and to St Malo it uses Bretagne and its luxury flagship Pont-Aven. Moreover, the company provides three-hour fast craft options to Cherbourg thanks to the Normandie Express, which is also currently used to provide fast sailing routes to Le Havre. Additionally Brittany Ferries offers routes from Plymouth to Roscoff and St Malo; the former uses the
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Armorique and Pont-Aven vessels, while the latter offers overnight ferry services during the winter months. The route from Poole to Cherbourg has the Barfleur ferry available for four anda-half-hour services, while its luxury cruise ferry, Cap Finistère operates Portsmouth-Santander & Bilbao. Pont-Aven operates PortsmouthSantander & Plymouth to Santander. In March 2014, the company made the strategic decision to expand its services and launched the Brittany Ferries économie brand. Aimed at customers who wish to cost-effectively travel to France or Spain without the cruise-style experience that Brittany Ferries normally provides, Brittany Ferries économie offers one-way fares for a car plus two from just £70 to France and £209 to Spain. Although facilities and space on board are limited in comparison to Brittany Ferries’ popular and well-reputed cruise-ferry services, the économie branded ship Etretat still includes a
bar, boutique, café and restaurant, alongside free Wi-Fi access and a reading lounge. Following noticeable demand for its no-frills service, Brittany Ferries added another ship, the Bay de Seine, to its économie fleet to boost capacity and provide clients with a wide range of sailing times. Launched in May 2015, the Bay de Seine also brings the total number of services to Spain up to seven a week; altogether, the company now has ten routes and up to 142 weekly sailings, which provides customers with unrivalled flexibility and choice. “The Baie de Seine is on a medium term charter and, much like Etretat, she has less onboard services in comparison to our standard vessels but offering a competitive price. Over the last 15 months I would say the économie service has been going much better than we ever anticipated; one reason for this is that DFDS has closed its Portsmouth and Le Havre service, which has vacated a market and port
that was already in existence. We have also found that having a second ship and night rotations on certain days of the week has really helped the freight market to consolidate and utilise this line,” says John Napton, Managing Director of Brittany Ferries UK Operations. “We have noticed heavy freight and more price-conscious clients have used this line heavily, some of which were even existing clients, however, this means we now have more capacity to sell more tickets to Spain on our standard fleet throughout the summer, which is great,” he adds. “Five years ago we were travelling to Spain twice a week; we are now travelling there seven times a week, which really provides flexibility to people’s itineraries.” While business has remained positive for Brittany Ferries since it was previously featured in Shipping and Marine magazine in November 2014, the company has been affected
by MARPOL legislation, with an ongoing three-year £50 million improvement plan currently in place to upgrade six vessels and install sulphur scrubbers. “We began embarking on our scrubber refits for three of our vessels in November 2014; these have since been completed and the vessels are back in service. The scrubbers cost in the region of £10 million pounds per vessel and it means we can burn the same fuel we were burning previously, so it is essentially a lot of money spent to stand still, but rules are rules. “Another important issue from our point of view is how long each vessel is out of service to have these refits, it takes approximately ten to 12 weeks, which means we have had a reduced commercial offering to our clients. This is the invisible cost to this process and we will be thankful in March 2016 when the upgrades and installations are completed and we can get our schedules back in place.”
Etretat
PK OEM Parts For more than eight years, PK OEM Parts has been a stable business partner of Brittany Ferries, supplying their fleet with high quality OEM parts suitable for Wärtsilä engines and Westfalia separators. PK OEM Parts understands that reliability, speed, service and availability are crucial elements in today’s shipping. Its warehouses hold thousands of different high quality spares that are fully interchangeable with the original and ready to be dispatched worldwide. PK OEM Parts provides quality and has a team of dedicated professionals at your service, 365 days a year, seven days a week, 24 hours a day.
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All Brittany Ferries’ ships are manned by highly-trained French personnel
Once the scrubbers are installed, the ships’ exhausts will be cleaned and 90 per cent of the sulphur dioxide will be removed, thus ensuring Brittany Ferries will comply with the new MARPOL VI limit of 0.1 per cent sulphur emissions. In March 2015 the company announced the return of its Poole to Cherbourg ferry, Barfleur, and marked the special occasion with three great-value holiday offers to Cherbourg. This included a one night ‘Cruise & Stay’ hotel break from £64 per person to Cherbourg, a one night ‘Gourmet Break’ from £89 per person to Cherbourg and a ‘Cruise & Stay’ hotel break from £89 per person to Saint-Vaast-la-Hougue, just east of Cherbourg. “The refit and return of Barfleur gives some assurance to our clients that she is here to stay for a period of time. The port of Poole is right in the middle of our Portsmouth and Plymouth offering, so it is very important to regain confidence that we are going to continue operating on the western channel,” explains John. Following these major investments and developments, Brittany Ferries now has the biggest fleet it has ever operated; as such, it is now focused on boosting efficiency, as John notes: “We want to generate new turnover on roughly the same overhead, which is where efficiency comes in. We aren’t talking about cutting costs or people, but instead maintaining what we have 20 - www.shippingandmarine.co.uk
Profile: Brittany Ferries Fine onboard food and service are integral to Brittany Ferries’ philosophy
and pushing for more turnover. To do this we will maintain our premium brand for our clients and deliver a fantastic experience, and the only way to do this is by matching their expectations as best you can in what has been pretty rough trading over the last six years.� Despite facing the challenges of the economic crisis, Brittany Ferries
is currently enjoying the benefits of sterling being very strong and France and Spain becoming affordable destinations. In addition to this, oil prices have remained low, which is further going to create a financially positive year for the company that could potentially result in a new build being announced over the next 12 months.
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Profile: Brittany Ferries Normandie complete with remodelled funnel
Moving forward, Brittany Ferries will focus on consolidating the recent changes that have taken place, most notably with regards to DFDS closing its Portsmouth to Le Havre service and the resulting added exposure to Northern Spain. “We want to make sure we continue to deliver an effective service and maintain our brand. With the scrubbers completed in March 2016 we will have our full fleet back, which will mean we have the most extensive schedule we have ever had; this is what we wanted and we are looking forward to reaching this point in our history,” John concludes.
Barfleur departing from Poole
Company flagship Pont-Aven
Brittany Ferries
www.brittany-ferries.co.uk • Operates a luxurious fleet of cruise ferries • Undergoing a three-year £50 million improvement plan • Launched Brittany Ferries économie in February 2014
Steve Warner On the 17th February 2015, following a very short illness, Steve Warner died. This was a great shock and loss to all who knew him, especially to his family who were as close as can be imagined. For Brittany Ferries and its’ clients and suppliers that knew him, we lost a friend and a leader who was a company man through and through. In his time as Director of the UK and Ireland, he embarked on shaping the company to his vision, which he had cultivated in close to his 30 years in the company before his appointment as Director. These changes are his legacy and leave an indelible mark on the company from his period at the helm. He will be truly missed by all those that had the pleasure to know him.”
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Profile: Caledonian MacBrayne
service A vital
T
he islands of the west coast of Scotland from the Clyde to the Minch vary wildly in size , population and character, and despite their remote location, have long had living communities which continue to thrive on the outer perimeter of Europe and today are also a magnet for tourists and visitors drawn to the stunning, unspoilt landscapes. With the exception of Skye, which now possesses a road bridge connecting it to the Scottish mainland, the most reliable method of reaching the islands is on ferries run by Government-owned operator Caledonian MacBrayne (CalMac). “We are a multiple award-winning company and operate as the largest ferry operator in the UK in terms of vessels and routes operated. We cover a 200-mile stretch of the west coast of Scotland, which has some of the most challenging sea conditions in Europe.
CalMac’s main activities are providing lifeline ferry services and operating 24 ports and harbours around the west coast of Scotland and all that entails, but it is also actively involved in the training of seafarers and pursuing new business opportunities,” begins Martin Dorchester, Managing Director of CalMac Ferries Ltd. CalMac has a history reaching back 160 years, when paddle steamers emerged as the primary method of transit for passengers and freight along Scotland’s west coast, with David MacBrayne Limited and Caledonian Steam Packet Company being two of the region’s most important shipping companies. Nationalisation in the mid 20th century eventually saw the Caledonian Steam Packet Company enter the hands of the Scottish Transport Group and, following the acquisition of David MacBrayne Limited in 1973, Caledonian MacBrayne was formed
and became responsible for almost all the essential routes to and between the islands. Today it runs between the mainland and 24 island destinations as part of a six-year public services contract that commenced on 1st October 2007. “Services are provided through the Clyde and Hebrides Ferry Services contract (CHFS) which is awarded by the Scottish Government. The original contract for 2007-2013 was extended to 2016 by Government and the next contract is now out to tender,” confirms Martin. He continues: “Our customers fall into two broad groups; the communities of the rural and remote areas we serve as they go about their day to day business and visitors and tourists who travel to these areas for business or leisure purposes. The first group is extremely diverse and covers everyone from children and students travelling to school or college, to farmers taking livestock
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Martin Dorchester, CEO Caledonian MacBrayne
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to market and the hauliers bringing in the animal feed their flocks and herds rely on. The west coast of Scotland is renowned for its fresh seafood, shellfish and other produce, all of which relies on ferries to get to markets whether on the Scottish mainland, the rest of the UK or the Continent and beyond.” Islanders also rely on ferries to bring to them a broad range of produce and products as well as for transportation for routine medical appointments or conduct their business with bank managers or lawyers, for example. The company today operates a fleet of 31 vessels and provides 130,000 sailings a year to its diverse customer base, with an average of 385 departures a day. Within the fleet are a variety of different sized ships, from small vessels such as the MV Eigg, which can carry only five cars each journey, to the brand new £42 million MV Loch Seaworth, which is capable of carrying approximately 140 cars. “In 2014 alone, 4.65 million people, 1 .1 million cars, 93,000 commercial vehicles and 11,000 coaches travelled on a CalMac ferry,” says Martin. To further improve services, CalMac is in the middle of a major transformation programme, which includes massive investment in technology both onshore and at sea. “Included in the overhaul are the ticketing and online booking systems and vessel and port communications which will enable us to provide Wi-Fi to customers
wherever they are,” explains Martin. Despite being named the Best Ferry Company in the UK Transport Awards and also Best Ferry Company in the Guardian/Observer Travel Awards for the fifth consecutive year in 2015, CalMac refuses to rest on its laurels and instead strives to provide vital ferry links to its customers while also delivering a unique service that benefits both tourists and locals. “CalMac is a customer of local businesses in its own right. It has been teaming up with specialist producers from across its network to sell their goods on board the company’s vessels. In 2014, CalMac’s supplier spend across its network totalled £5.188 million and, recently, all ten of the company’s on-board restaurants achieved VisitScotland’s Taste Our Best accreditation for commitment to serving Scottish produce,” says Martin. A provider of extensive support to islanders and remote communities, CalMac supports a total turnover of almost £270 million in companies across Scotland and has paid a total of £41 million in salaries to CalMac’s Scottish employees. Moreover, the company remains the largest advertiser and marketing organisation for West Coast destinations and events, as Martin notes: “The Fraser of Allander report estimated that CalMac enables 3,247 jobs in island tourism and enables £53.4m worth of wages in island tourism.”
Profile: Caledonian MacBrayne
With the CHFS contract due to end in the final quarter of 2016 and the £1.3 billion contract to operate the service for the next six to eight years out to tender, CalMac’s current primary aim is to win the bid by meeting and listening to customers and adhering to Scottish Government targets. Cautiously confident, Martin concludes: “Our primary focus is on winning the next CHFS contract and ensuring the service improvements
and innovations that we have started on this side of the tender are seen through to completion.”
Caledonian MacBrayne
www.calmac.co.uk • The UK’s largest ferry operator • Named the Best Ferry Company in the UK Transport Awards in 2014
• Investing in technological enhancements to improve the customer experience
Horsebridge Network Systems Horsebridge Network Systems Limited, a leading-edge technology company with offices in England, Scotland, UAE, Kenya and Malaysia has been awarded a multiple year contract to enhance and manage CalMac’s digital communication networks. Spanning CalMac’s entire network of 57 ports and 34 vessels covering the West Coast of Scotland and the Western and Hebridean Isles, the network will support the delivery of enhanced communications services to improve CalMac’s corporate communications and enhance CalMac’s customers travel experience. Utilising an innovative mix of technologies and services, Horsebridge has provided a future-proof network capable of supporting CalMac’s IT requirements today and into the future.
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Profile: Aluminium Marine Consultants
A collaborative
approach
E
stablished in Cowes, the Isle of Wight, in January 2007, with the aim of providing a high quality service to the commercial workboat market, Aluminium Marine Consultants (AMC) has since gone on to manufacture more than 30 aluminium windfarm catamarans and a number of aluminium hovercraft for both commercial and military markets. “AMC was formed by two directors, Steve Holbrook and Nigel True, who originally started the company with the intentions of working as consultants using their combined 60+ years in the boat building and hovercraft industry (hence the name) but soon after were asked to go back to their 26 - www.shippingandmarine.co.uk
roots of manufacturing by making hovercraft for Hoverworks Ltd now part of Griffon Hoverworks. These projects included the building of two very large ap188 type 30 metre plus hovercraft for the Canadian coastguard,’’ begins Rob Stewart, commercial director at AMC. “After starting manufacturing again with the hovercrafts, AMC was approached by South Boats to supply the completed aluminium hulls and deck houses ready for fit out for approximately 35 South Boat vessels; this has given us significant experience in the wind farm industry. I believe around that time 30 per cent of the wind farm fleet’s hulls and deck houses in the UK were made by AMC, which was
an impressive feat for a company that was not a familiar name in the market. Following the demise of South Boats we were owed a great deal of money, but chose not to wallow in self pity and instead continued to make boats. This decision was supported greatly by Turbine Transfers, who gave us two boats to build; one of these vessels was Trearddur Bay, which has become known as one of the most advanced wind farm vessels on the market,” he continues. Collaborating with BMT Nigel Gee, a subsidiary of BMT Group Ltd, the designer of Trearddur Bay, and Voith, the developer and manufacturer of the Voith Linear Jet (VLJ), AMC successfully
constructed the highly innovative 21 metre vessel that is already being recognised for its excellent fuel economy and seakeeping abilities. Trearddur Bay benefits from high efficiency and minimised fuel consumption thanks to the Voith’s combination of an advanced ducted propeller with a stator positioned in the duct aft of the propeller, which thus creates similar capabilities to that of a waterjet but much more efficient. As the first vessel in the world to have the VLJ installed, Trearddur Bay and those involved
in her creation have generated a significant amount of attention from the increasingly energy efficiency conscious shipping industry. “This was a great collaboration, which involved AMC working closely with Voith and BMT Nigel Gee to make this vessel first-class. She is phenomenally economic and her results so far have been stunning; in fact, she is far more economic than any other boat of its size on the market at present. This type of propulsion system had never been constructed before, so this led to challenges for us. However, we worked together to solve engineering issues while we made all of the systems and integrated all of the electronic control systems with the VLJ, gear boxes and engines; I am enormously proud of this project.” With the vessel successfully built at AMC’s former facility on the west bank of the River Medina, the company went on to work on
the safe movement of Trearddur Bay from its small shipyard to her Isle of Wight launch site alongside heavy transport specialist Kingswell Haulage Ltd. The challenging project was awarded Job of the Year at the first annual Heavies Awards, which was launched by Heavy Torque, a heavy haulage industry’s magazine due to the millimetre perfect placement of Kingswell’s 90 tonne, four axle extendable trailer and the maneuvering out of the tight confines of the West Cowes yard. “We do a lot of work with Robbie Kingswell,” says Rob. “This time we devised a way to move the boat successfully into the water. However, now that we have relocated, we benefit from a new 70 tonne lift, which means we can now wheel vessels in/out of the water quickly.” Indeed, coinciding with the launch of Trearddur Bay, the company’s relocation to new facilities at Venture quays has resulted in a larger working environment that will enable it to deliver projects from large commercial workboats to more
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Profile: Aluminium Marine Consultants
GLOBALINSUL ATION EUROPEAN (LTD)
00 44 (0)23 9246 2113
SPECIALISTS IN MARINE AND INDUSTRIAL INSULATION
contact@globalinsulation.co.uk
Marine and Industrial Insulation Installations
A leading thermal insulation contractor to major UK and European companies 28 - www.shippingandmarine.co.uk
Global Insulation (European) Ltd Global Insulation (European) Ltd are one of the UK’s leading insulation companies, especially to the marine industry. We are situated on the south coast of the UK. With our vast experience we can supply you with our technical expertise to specify the most appropriate insulation solution to comply with your standards and regulations. We are fully compliant with A60, A30, to either aluminium, steel or composite structure, regarding high temperature work, such as exhaust systems. We are proud to be associated with Aluminium Marine Consultants to name but one of our many marine clients.
custom-made vessels. In addition, the new shipyard will be suitable for the company’s increased workload and employee level, as Rob highlights: “We now have a very large build hall that is clean, light and relevant to our uses. It is here that we have extended our workforce by some 35 new employees; we have taken on staff in all trades, including welding, fabrication, electrics and electronics and have also taken on two apprentices, one in electrical engineering, the other in mechanical. “We are currently looking for more apprentices, which is not only good for us, but also good for the island. The reason behind this expansion is that we anticipate further growth due to the positive response from Trearddur Bay and from CWind; it is fantastic that people are coming to us and that we haven’t had to seek work.” Announcing that it had placed an order for four new crew transfer
vessels from AMC in April 2015, CWind is keen to boost its fleet’s capability and meet customer demand through diversification of its vessels. The order comprises of two 21 metre aluminium catamarans and two 23 metre aluminium catamarans; it is the first time the company has ordered aluminium vessels. Looking ahead, Rob says he is positive about the future of AMC and sees plenty of opportunity for further growth in the wind farm sector: “The outlook is very good for the windfarm industry and there is a growing tendency for developers to ask for local content, which means operators are encouraged to acquire UK vessels.” With a diverse team of competent, quality conscious employees, nearly a decade of expertise as a company and an innovative, collaborative approach to challenging projects, AMC is the go-to company for clients requiring a shipyard that has the capabilities and capacity to deliver superior solutions, both on time and to budget.
Aluminium Marine Consultants Ltd.
www.aluminium-boats.com • Shipbuilding and consulting company • Constructed the ground-breaking Trearddur Bay
• Four vessels under construction for CWind
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Profile: CHARTCO
Top of the
charts O
perating under the helm of Kelvin Hughes Group, a world leader in the design and supply of navigation and surveillance systems, ChartCo Limited has grown over the years to become the world’s longest established and largest distributor of nautical charts, navigational data, marine technical publications and digital products. An integral part of the shipping industry, the company, alongside Kelvin Hughes, is responsible for an impressive range of innovations that have assisted captains at sea to safety over the past two centuries. “Kelvin Hughes began in the 18th century as a clock manufacturer for the nautical industry before progressing into paper charts in the 1940s. Ship sailing around the world was originally through paper charts that needed to be updated by those on vessels every week. To update the charts, ship owners and captains
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required a printed booklet that would be sent to approximately 1000 ships across the globe; to eradicate the risk of not receiving the vital information, ChartCo came up with the idea to send this update via electronic means. Originally the information was broadcast via satellite and received by a ChartCo system. From there we progressed into sending this information via email or internet, so ships can connect to our server and pull off the data they require. Around this basic service we have since added on further software and services to provide our customers with optimum solutions,” begins Robert Corden, ChartCo Limited’s Head of Sales. For customers requiring innovative solutions with a global footprint, ChartCo is the go-to company thanks to its ability to deliver market-leading solutions to the most demanding of fleets. In fact, by using its longterm knowledge and expertise in digital products and services, the
company today delivers weekly digital navigation data to more than 6000 vessels at sea. The company’s flagship software, PassageManager, is supplied to all subscribing vessels and integrates all ChartCo products and services in one easy viewer. Other benefits include ‘at a glance’ monitoring of product status for any route, which, once plotted, can be filled in with the required paper or digital products. Moreover, PassageManager uses a simple colour code to automatically provide the status of each product and has a passage planning facility so customers can not only identify the products that are not currently in the ship’s outfit, but also the electronic products that do not have a valid permit. These required papers can then be ordered from the vessel’s supplier of choice. Alongside these benefits, the key features of PassageManager include an automatic overlay of products on to the route, import and export
Photos: Opposite page, top left: PassageManager-MetManager Top right: PassageManager-NavArea-Warnings Bottom right: PassageManager-Port data Left: PassageManager-Route Robert Corden
Everlux routes to and from ECDIS; easy management of both paper and electronic data and comprehensive passage planning in a much shorter time frame in comparison to more traditional methods. “Because all vessels are required by IMO regulation to produce a passage plan
for every single voyage they make, our software now allows a vessel to produce a comprehensive passage plan in mere moments, which can then be standardised across fleets. The software also comes with a range of additional data that the customer can choose to subscribe to; this includes
ChartCo are an authorised distributor of Everlux photoluminescent maritime safety signs. Everlux are recognised as a leading manufacturer of photoluminescent safety signs which can be found globally through authorised distributors. Notable amongst these are ChartCo Ltd who have been distributing Everlux safety signage since 2013. The Everlux range includes complete maritime safety signage solutions compliant to all IMO Resolutions, SOLAS Conventions and ISO Standards. The Everlux catalogue allows ship chandlers, suppliers, builders, owners, operators, safety officers and purchasing managers to understand the technicalities of safety signage systems ensuring compliance with relevant legislation and standards to provide a safe on-board environment.
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Profile: CHARTCO Left: PassageManagerRegs4ships
weather forecasting or a routing service that gives information on 8000 ports across the globe,” says Robert. “PassageManager is the most widely used software of its type in the world; we probably have two to three times as many ships installed with this software than our competitor and we are currently at approximately 6500 ships,” he continues. To further strengthen its service offering to customers including the world’s navies, merchant ship owners and pleasure craft operators, ChartCo made the strategic decision to acquire Regs4Ships, a specialist in the provision of digital regulations, technical information and IMO material to ships and shore infrastructure, in September 2014. As the operator of the only database in the world that is capable of providing up-to-date, accurate resource of shipping regulations and technical information, which is then utilised to provide customers with an extensive range of products and services, Regs4Ships is certain to play a key role in ChartCo’s ongoing growth strategy. “Reg4Ships has a unique offering,” says Robert. “All commercial ships are required by IMO regulations and flag states to carry documentation, legislation and regulation on board, some of which is relevant to the flag state, while others are down to international regulations and law. Should a flag come up with a new
circular, all vessels flying under that flag are required to get a copy of that onboard their vessel, which was originally done through sending paper. To make this process easier, Regs4Ships has come up with a digital database, which it developed over the last 15 years; this contains all of the relevant flag state documentation for up to 23 of the major flag states. As Reg4Ships is accredited by those various flag states, this certifies that the CD’s are equivalent to carrying paper publication.” As the shipping industry adopts digital navigation, ChartCo sees opportunities for continued growth as it focuses on delivering high quality digital products and digital services. “In addition to this, we will be looking to find complementary digital products that can be added to our current offering and are also continuing to develop our services within PassageManager to add value for our customers,” concludes Robert. “There is no other package that even comes close to integrating all the requirements to make Voyage Compliance Simple.”
ChartCo
www.chartco.com • Largest distributor of navigational data, charts and digital marine products • Supplies the world’s navies, merchant shipping and craft operators • Part of the Kelvin Hughes Group
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Profile: CLORIUS CONTROLS
Keeping control
F
ounded at the start of the last century, Danish company Clorius Controls has had over 100 years experience developing equipment for monitoring, controlling and regulating heating, cooling and ventilation for a range shipping and industrial applications. Serving the needs of an ever-evolving industry, Clorius Controls remains committed to continuous innovation and development to offer an up-to-date product range to match today’s requirements regarding advanced technology, user-friendliness and reliability. The company’s core
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product range includes valves, thermostats, pressure difference regulators and electronic controllers. Testament to the company’s depth of experience and reputation in the shipping industry is the fact that about 75 per cent of all vessels sailing today have a Clorius temperature control valve installed. The strengths of the business not only stem from this ability to react to an ever-changing market, but also in the level of service that Managing Direct Anders Haugard has fostered into the company. Speaking to Shipping and Marine back in September 2014, he highlighted the important role that positive teamwork plays in the success of Clorius Controls’ business strategy, listening to customers’ needs and using their demands to fuel research and development programmes and innovation. Below this customer service is a technical service supported by a network of technicians available 24/7/365 offering adjustment and error detection as well as checkups, analysis and general support for all types of regulation equipment. It is clear that Anders’ direction since assuming the leading role in 2012 has had significant effects on the performance of Clorius Controls. It was announced in the last feature that the company had increased its sales by 40 per cent in 2014 compared to the previous years, and this trend looks to have continued into 2015 as the company reports that business is going very well. One major highlight in 2014 was the successful growth in the company’s Asian markets, the centre of global shipbuilding and again the successful continuation of this growth has been reported with more orders received for shipyards in the region. Operating globally can throw up some issues for a manufacturer operating in an industry that demands reliable and time effective
delivery. Therefore, Clorius offers buffer stock of valves and regulating equipment according to maritime specification, and ensures reliable delivery to harbours where equipment is needed. Adding to the successful growth currently being achieved by Clorius is the successful bringing on board of MAN as a client. The global engine manufacturer for shipping represents a significant customer for Clorius as it opens the door onto new, much larger potential companies on the same level as MAN, such as Caterpillar and Wärtsilä. Innovation plays a major role at Clorius Controls. Designed for the regulation of cooling water, sea water and lubrication oil in an integrated temperature loop, the company’s three-way control valve, G3CM-T with grooved joints has been developed specifically with the high demands of the marine industry in mind. Able to facilitate large liquid flows, the valve replaces conventional flanges with grooved joints to enable a further weight reduction of approximately 20-25 per cent and also helps to reduce noise, vibration and stress levels. Couple this to the strong and simple design with only few moving parts, and the G3CM-T is a robust and hardwearing component with a
reduced need for costly and time consuming repair and maintenance work. Speaking about the valve back in September Anders highlights: “The product has generated a great deal of interest in the market. The ease of installation, combined with the reliability and control characteristics has made a lot of shipyards and shipowners shift from traditional control valves to our rotating type.” Other innovations accompanying the product range include Clorius’ self-acting temperature controllers, which are reliable to withstand even the most extreme conditions. Also its differential pressure controllers, which ensure a suitable and constant differential pressure under all circumstances to reduce high and fluctuating pump heat in large heating networks. Currently, 70 per cent of Clorius Controls’ sales are to the marine sector with the remaining in the
industrial markets. However, as the company looks forward, expanding its industrial presence is a particular focus and Clorius Control will be attending ACHEMA in Frankfurt, as well as a number of other exhibitions, to help achieve this growth. More generally, it is clear that the future of Clorius Controls will continue to be founded upon the committed drive for innovation and development that has so defined its past. With growing markets in China and South East Asia, this will remain a focus, as will the desire to maintain its reputation across the rest of the world in order to retain its leading position in the market.
Clorius Controls
www.cloriuscontrols.com • Continuing to achieve positive levels of growth • New major client, MAN • Looking to expand its industrial presence
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Profile: Port of Antwerp Deurganckdok - Antwerp Gateway Terminal
Bold
B
investments
oasting a long and rich history dating as far back as the 12th century, the Port of Antwerp has developed its infrastructure and activities to grow from a humble river port to become an indispensible link in world trade and a market leader in maritime, industrial and logistical services. Taking over an area of 12,068 hectares, the Port of Antwerp has a quay length of 166 kilometres, a railway reaching 1061 kilometres and roads covering 409 kilometres, which thus ensures a wide connection to the worldwide foreland and hinterland. In fact, through these routes the port has direct services to 1400 ports across the globe and has become a leader in container shipments in the Middle East, North and Latin America, India and Africa and has the largest concentration of regular breakbulk sailings per month. Surrounded by highways, the port also has direct connections to the neighbouring countries, which has resulted in 925 barge calls to 350 European destinations and 210 container shuttles to 85 destinations
over eight countries being made every week. “In 2014 we handled almost 200 million tonnes of goods and almost nine million TEU; we expect to exceed this in 2015,” begins Port of Antwerp’s head of communication Annik Dirkx. “Being located inland means we are based by a river but can still offer all over the benefits of a sea based port, which is a real advantage. We have three main pillars of activity, these are maritime, which involves handling all kinds of goods, but mainly containers and liquid bulk, and industrial activities, which includes the huge petrochemical cluster we have in operation here at the port’s terminal. In fact, we have seven out of ten of the biggest petrochemical companies here on site; these include Total, ExxonMobil, Oiltanking Stolthaven Antwerp nv and Vopak. Our third and final activity is logistics; for this part of the business we have the most extensive range of logistics services, from storage, packaging and testing to cleaning, weighing, sorting, labeling and maturing. This ensures all goods
are delivered to the end customer in the best possible state.” Today almost 150,000 people are involved in the port’s success story, working in close co-operation to ensure continued prosperity and sustainability; these major players include private companies, the Antwerp Port Authority and a number of government departments. Comprised of 1650 employees, the Antwerp Port Authority focuses on port functionality and ensuring continued growth; the team manages and maintains the docks, bridges, quay walls and grounds, and is also responsible for the safety of shipping in the docks, bridges and locks. On top of this, the authority also works on the sustainable development and innovation of the port and is currently working on a 1.6 billion euro, 15 year investment programme that began in 2010. “Major investment projects within this 15 year programme include improvements to infrastructure, for example, we are currently building a second lock on the left bank of the Scheldt. We have six locks on www.shippingandmarine.co.uk - 37
Havendok - Seatank terminal Berendrecht
Special cargo heavy lift
the right bank and only one lock on the left, which is now old and too small for the demands of ship owners with increasingly larger vessels. We are building a second access between the Deurganckdock and the Waaslandcanal, with this new lock anticipated to be fully operational on the 24th March 2016. This project is costing approximately 382 million euros and has been financed by the Flemish government, with the Port Authority paying 25 per cent of this amount,” says Annik. With growth in freight handling activities on the left bank, the Deurganckdoklock is an essential development. It will also offer greater operational security as there will always be at least one lock available to customers. In addition to this integral project are renovation works, modifications and further preparation for larger vessels. More recently, the Port Authority has been focused on plans for a new investment zone on the left bank, as Annik explains: “The reason behind the new dock, which will be our second tidal dock, is to meet the expected increase in traffic and demand for capacity by 2021. In relation to this, we want to create an investment zone that will combine industrial and logistical and maritime activities for either new customers and companies or current ones looking to grow. In the beginning of 2016 one of our shipping companies will move to the existing dock on the 38 - www.shippingandmarine.co.uk
left bank, taking its operational activity of almost five million containers. This development means we need to invest further, not only in new infrastructure, but also in connections towards the hinterland so all of these goods don’t have to be transported via truck to their final destination.” To prepare for this development, the Port Authority has strengthened its hinterland routes with two new rail connections, the Swiss Xpress, a fast rail link between Belgium and Switzerland, and higher frequency rail links between Antwerp Gateway and DIT terminal in Duisburg. Indeed, since the beginning of 2014 the Duisport Agency GmbH, a subsidiary of Duisburger Hafen AG, has offered a direct daily departure to Duisburg from a deepsea quay (at the Deurganckdock) in the Port of Antwerp. The two port authorities have worked closely for many years with the goal of further developing this integral logistical corridor; a commitment that has been underlined with the Port of Antwerp’s decision to participate in the rail shuttle route for a period of five years. The
shuttle offers a direct daily connection between the Deurganckdock in Antwerp and logport in Duisburg, which thus assures a trimodal link between the two locations and a fast, efficient handling of increased freight flows. “Duisburg is of major importance to the Port of Antwerp as it is situated in a region that has a high concentration of industrial activities, and thus represents a high import/export power, which is why we invest heavily in maintaining a strong relationship with this region. This railway connection will be an effort we are making to get the goods on the left bank moving towards their final destinations quickly and efficiently,” notes Annik. With these major investments ongoing, the Port of Antwerp is looking to find new clients and companies to establish themselves in its newly developed or refurbished sites and is focusing its attention on China and its ‘One Belt, One Road’ strategy. Launched in the final quarter of 2013, the strategy focuses on connectivity and co-operation among countries that
Profile: Port of Antwerp are primarily based in Eurasia; it has two key components: the Silk Road Economic Belt, which is land-based, and the ocean-going Maritime Silk Road. Seeing opportunities to play a significant role in both routes as a trading hub, the Port of Antwerp has applied to join the Asian Infrastructure Development Bank, which will offer great potential for significant growth in its market share in China. “We are market leaders for five out of six sailing areas, but we are not market leaders in the Asian continent so we are investing heavily to change this. We have set up a task force to gather information on this huge project so we have a comprehensive understanding of what it entails. One way we will try to position ourselves as a valuable asset to the ‘One Belt One Road’ strategy is through our historical relations with the African continent. We are active in the Congo, West Africa, while China is looking more towards East Africa, but with our history of expertise, knowledge and history within this continent we believe we can play a role as a hub towards the
growing African market.” Another major development for the port was announced in May 2015 when Saudi Arabian energy waste recovery pioneers Energy Recovery Systems Company Ltd (ERS) was given the go-ahead by the Port of Antwerp to negotiate exclusive concessions on 150 hectares of land at Delwaide dock. The land will be used for the construction of a waste to chemicals factory, costing 3.7 billion euros, that will offer work for 900 people and will process 3.5 million tonnes of waste materials to obtain 1.2 million tonnes of green urea and 645,000 tonnes of green ammonia once at full capacity. With the concession not yet awarded, three years are now required to develop the project on site and to acquire necessary permits. “This is possibly the first time that this type of innovative technology will be used on such a large scale, so once the contract has been signed this will be a newsworthy development at the Port of Antwerp,” says Annik. “We now have to look into the technical and financial feasibility, with negotiations expected to close in September so
concessions can be signed soon after.” Wholly dedicated to have the Port of Antwerp prepared for any future demands or challenges, the Port Authority is focused on continued heavy investment and increasing capacity over the coming years. However, progression and improvements at the port come with their own political and societal challenges, as Annik concludes: “We are investing heavily in the new dock and development zone, however this is a difficult project on a human and jurisdictional level in the sense that some local people will have to relocate. We have to fight this because we believe these developments will secure the future of the Port of Antwerp; if we are not able to offer extra capacity by 2021 we are essentially missing the boat.” Port of Antwerp www.portofantwerp.com • Largest port area in the world • Handles all types of cargo • Massive investments ongoing
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Profile: Rederij Wantij
World-class
service
E
stablished in 1982 by Mr Koch, Eleveld, Verdoorn, Veenma and Berends, Rederij Wantij BV has developed over the years to become a world-class partner in the delivery of cargo. Primarily focused on trade within Northern Europe, the Baltic and Mediterranean since the delivery of its first vessel, mv Maas, in 1983, the company has remained committed to its strategic decision of single vessel ownership, choosing to invest in larger, more modern vessels every six to seven years. In 1991 Rederij Wantij ordered the 3000 DWT, mv Donau, which was constructed at the Turnu Severin shipyard in Romania; the vessel was delivered in 1993, the same year the 40 - www.shippingandmarine.co.uk
company sold the mv Maas. From 1998 to 2002 Rederij Wantij went through an important period in its history, with the majority of the business being acquired by new owners, brothers Jan and W.H van Veen and John Hartman. In 2002 Jan and W.H van Veen divided their companies, with all shares of Rederij Wantij being sold to current owners Jan van Veen, John Hartman and Naftali Blokzjil. Following this company defining process, the three owners ordered a new vessel from the Rousse JSC shipyard in Bulgaria in 2005; this became the second ship to carry the name mv Donau when it was delivered in 2011. Flying the Netherlands flag, the ice class, 8000 DWT general cargo ship
mv Donau is managed and operated by Rederij Wanmar BV and Nednor BV and is Germanischer Llloyd 100 A5 E3 classified. She has a length of 128.45 metres, a breadth of 15.87 metres, depth of 9.90 metres and can reach speeds of 14 knots. Moreover, the vessel has a 500 kilowatt bowthruster fitted, a bunker capacity of 470 cubic metres IFO and 60 cubic metres MGO; she also has a freshwater capacity of 40 cubic metres and ballast water capacity of 4.250 cubic metres. Furthermore, the vessel always has one owner onboard operating as captain, which ensures high quality operations, shorter lines of communication and faster decision making. Wholly capable of transporting
a diverse range of cargo, the mv Donau has successfully completed many projects for major oil and gas companies and shipping firms. Bulk cargo that the vessel has moved include coil, hot briquetted iron (HBI), containers, steel products, offshore equipment and stones; it has also transported discharging reels from Norway, loaded copper and nickel from Murmansk, Russia, loaded steel plates from Ust Luga, Russia, loaded a new crane and transported it from Gdansk, Poland and loaded and transported woodchips from Riga, Latvia. Like many shipping firms, Rederij Wantij was hit by the economic downturn, nevertheless, thanks to its strategy of focusing on organic
growth and investing in larger and better equipped vessels, the company has been able to weather these volatile market conditions. Previously featured in Shipping and Marine magazine in November 2014, Rederij Wantij witnessed a strong start to the year, as managing director Jan van Veen notes: “Things were going well at the start of the year, with a number of projects coming into play for the transportation of all kinds of cargo. However, our activities have quietened down since April and we are now waiting for the market to pick up once again.� Alongside the depressed shipping market, the company has also been under pressure to tackle the issue
It doesn’t make sense to invest a great deal of money at the moment, so we have instead invested in ULSF; at this time it makes no sense to invest in a scrubber or LNG, so we will wait and see what changes happen in the future
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Profile: Rederij Wantij
The Dutch Kooiman Group The Dutch Kooiman Group has shipyards in Zwijndrecht, Dordrecht and Yerseke. Being an important supplier of Rederij Wantij and other national and international shipping companies, Kooiman is offering a wide range of services, including repairs and making Class for coasters and other seagoing vessels. Over the course of the years, her customers and vessels have grown in size. The Kooiman Group makes a similar move and increased her dry docking capacity up to 4200 tons and maximum length 150 metres.
of complying to SECA by January 1st 2015. However, as fuel prices have continued to fall, Rederij Wantij made the decision to invest in ultra low sulphur fuel (ULSF) when it operates in SECA regions. “No one expected oil prices to fall so dramatically,” Jan explains. “It doesn’t make sense to invest a great deal of money at the moment, so we have instead invested in ULSF; at this time it makes no sense to invest in a scrubber or LNG, so we will wait and see what changes happen in the future.” Although times are challenging, the company has a number of strengths to ensure continued growth and success. For example, by operating a single vessel capable of managing several cargo types, the company is thus able to be incredibly agile in its dealings and respond to opportunities quickly. Presently Rederij Wantij operates on the spot market, where company’s small size may be utilised to offset some of the challenges that remain in place following the global financial crisis, as managing director Jan discussed: “When you only manage one vessel you can only offer one trip, when you have additional vessels it is possible to close new deals before the vessel arrives and make the trip using another ship. As such it is important for us to operate on the spot market or look for a charter, however it is currently better to remain on the spot market as charter rates are relatively low.” Moving forward, Jan is cautiously optimistic for the future of Rederij Wantij and sees potential for expansion with a similar small company to increase competitiveness. Alongside these plans, the company will also look into acquiring a new, preferably larger vessel that will enable it to continue offering customers a unique solution of exceptional quality.
Rederij Wantij www.wantij.nl
• Family owned business • Operates a general cargo vessel • Over three decades of experience
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Profile: SeaStar Management
sea
Welfare at
F
ounded in 2009 as a subsidiary of global leader Wrist Ship Supply, SeaStar Management has grown to become one of the leading global providers of provision, service and budget management to the international shipping community. Based in Denmark, and supported by worldwide distribution offices in key locations, the company predominantly serves the catering requirements of a variety of vessels from tankers and bulk carriers to more specialised seismic and navy ships. Over recent years, despite an economic dip in the global maritime industry, more and more ships owners are turning to supply companies to outsource their catering handling needs. A particular driver for this is
the state of global regulations, such as MLC 2006, which provides a standard for seafarers to receive good, healthy and varied meals on board. “There’s an increased focus on welfare and ensuring proper working conditions on ships,” explains General Manager Niels Snog. “One of the great benefits of outsourcing is that customers can ensure that ships are in accordance with these restrictions and standards that have been introduced.” With this in mind, it is no wonder that in just over six years SeaStar is now serving more than 500 vessels, with a growth rate of around 100 per year. However, it is not just the state of the market that has afforded SeaStar with its success. “Being part of Wrist Ship Supply means we have a really strong supply value chain,” says Niels
Snog. “As part of this group we are therefore really strong at negotiating prices, offering quality service, uniform products and ensuring that the customer gets the best regardless of their position/location.” As the world leader in ship and offshore supply, Wrist Ship Supply has established a position of unrivalled buying power and supplier relationships across a global network. This means that SeaStar has a wealth of support and resource available to it in order to best serve its customers. As Niels Snog continues: “Fifty per cent of our volume can be covered by our internal supply chain through Wrist. Those of our competitors that also offer shipping supplies in their family of companies can perhaps manage ten to 20 per cent, and they don’t all cover www.shippingandmarine.co.uk - 43
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Profile: SeaStar Management
as globally as Wrist does.” Not only is quality fed down to the end user from this supply chain, but also at a leading price. Despite SeaStar being relatively new to the market it is aware of the amount of competition that exists and will continue to emerge as the innovative provider of catering services in a sector that is expanding. “SeaStar has positioned itself as one of the strongest in the market, but there are a small number of companies that are about 30-40 per cent bigger than us. However, the strength of our service means that we can compete equally with these.” Indicating the successful level of quality service it can supply and its ability to serve a range of needs to its diverse customer portfolio.The portfolio includes vessel types such as tankers, bulk carrier, navy vessels and seismic/offshore vessels. Seastar is an approved supplier to the German, Russian, Australian and Danish Navy and as Niels Snog explains: “To be approved as a supplier to a navy requires very high standards and certified operational procedures, we have been approved in four, which says a lot about the service quality and reputation of SeaStar.” What is particularly advantageous for the company is the ability for it to grow organically in a quick and efficient way thanks to the skills and knowledge that already exist in the Wrist group. “Whereas other companies need to bring in brand new employees and train them, we’ve been able to bring in experienced people from within our own ranks. As such, going from two to 19 employees hasn’t slowed down our
United Shipchandlers Being an appointed major ship suplier to Seastar Management at the port of Hong Kong, we thank them for their continued support. Moreover, it was due to Seastar Management’s expertise in the marine field, that we gained more knowledge through the way they handled requisitions/orders as well as their comments/ feedback hereafter, thus benefit us with further improvement. We wish Seastar Management the successful future that it deserves. Henry To, Managing Director of United Shipchandlers Ltd. Hong Kong
growth,” points out Niels Snog. As the market grows and demands more from supply companies, so SeaStar continues to respond. One major innovation that has only recently been released to market is a series of videos to promote and educate on best practice within the on-board catering department. These short films cover everything from waste management and hygiene to how to make a good cost-effective order to a ship. To accompany this by the end of 2015, the company will also be releasing an online maritime cookbook. This will help and support the Chefs and Chief Stewards onboard, in order to accommodate for the growing variety of nationalities among the seafares while still ensuring the welfare of these. Alongside the publication will be an online portal for customers to share new recipes and ideas across the industry. Another apt diversification for SeaStar is also evident in the company’s recently established stores catering division. “With stores catering, we’re expanding our concept to also include the purchasing of general consumer goods. This can be everything from tools to work wear, kitchen equipment and non-skid mats,” outlines Niels Snog. “A yearly budget is compiled, and we will then help the ship stay within this budget. Prices can differ upwards of 400 per cent from port to port, but when shipping companies outsource the management of all purchases, they don’t feel the price difference as we have agreed on a fixed budget. This means peace of mind for the shipping companies, knowing that we can guarantee a consistent quality on the ships, regardless of where they are in the world.” Initial reports of this new service offering are positive, and the growth looks set to continue over the next couple of years. Having been established by a global leading supply company at the right time to serve an ever-emerging market, SeaStar is a company that has experienced substantial growth in a short amount of time. Not only is this attributable to the support it has behind it, but also to the
unfaltering dedication it commits to serving a range of customers across the world with a wide variety of individual needs. With little sign of the market slowing down the future looks positive, yet Niels Snog is also keenly aware that new competitors are appearing on the market everyday making it more and more challenging. However, the strength and reputation already acquired by SeaStar will make it robust and able to weather any threats these may pose.
SeaStar Management www.seastar.dk • Owned by leading supply company
Wrist Ship Supply • Recently reached 500 ship milestone • Diversifying to serve a growing market
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Profile: Greenore Port
In the
green
C
onstructed in 1873 by the London and North Western Railway (LNWR), which recognised the area’s natural port characteristics in terms of shelter of its approach and its natural water depth, Greenore Port has since played a vital maritime role in Greenore for more than 140 years. With both the ferry and railway connection ceasing operation in the 1950s, the port went onto become the first port in the Republic of Ireland to handle containerised traffic before playing a vital role in the export of live cattle and frozen beef to the Middle East during the 1980s and 1990s. Today the port is capable of handling 250,000 MT per annum and provides both outdoor and covered storage; the main cargo handled includes bulk animal feed, fertilizer, coal, steel, timber and general cargo. “Greenore Port offers an extremely high quality of service and a good testament of this is our long-term relationship with the majority of the port’s customers who use Greenore as their preferred port. Many of the customers have been using the port’s
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services for decades and it is the number one port of choice for steel customers in Ireland due to the high quality of service provided,” says Niall McCarthy, General Manager at Greenore Port. Previously owned by One51 and the state-owned Dublin Port Company, Greenore Port became the first major port to be 100 per cent privately owned in Ireland when Burke
Shipping Group, the main operating subsidiary of family-owned Doyle Shipping Group, acquired it in late 2014. Discussing the reasons behind this acquisition, Niall states: “The port is situated on the east coast of Ireland just inside the entrance to Carlingford Lough on the eastern end of the Cooley Peninsula and connected to the M1 motorway by 15km of uncongested roadway. It is located in a key economic corridor, approximately 100km from both Belfast and Dublin. It is also a deepwater port, giving it better opportunity to compete with Ireland’s major ports.” Niall continues to highlight the benefits of today being a wholly owned subsidiary of the Doyle Shipping Group: “The Doyle Shipping Group have been servicing the shipping industry since 1886 and have great knowledge and expertise of the industry. They are Ireland’s leading shipping and logistics provider and have offices in all of Ireland’s major ports. This is of major benefit to Greenore Port as with the backing of the Doyle Shipping Group can now offer a complete logistical solution
for customers including agency, stevedoring, warehousing, chartering and forwarding. The Group can offer all these services not only to our clients in Greenore but throughout all of Ireland’s major ports.” In addition to this enviable flexibility, Greenore Port is also benefiting from investment in port infrastructure to further enhance its competitiveness, with a significant investment spent on an extensive dredging project, which enabled the port to handle a visit from the 38,900 dwt, 180 metre-long MV Smart Tina, which arrived from China in June 2015. “Dredging commenced in February 2015, and by mid-May we had removed more than 7000 tonnes of rock from our harbour bed,” says Niall. “This is to cater for a growing trend in the industry for larger, more efficient vessels which provide customers with economies of scale. Since dredging berth 1 we are now taking vessels in excess of 50,000 dwt.” Following this investment, Niall notes that the Doyle Shipping Group will next be looking to create a steel terminal on un-used land that is owned by the port: “The port owns a lot of land that is currently not being used for port related activities. We are currently in the process of resurfacing some additional land with the intention of creating a ‘steel terminal’. This will free up some quay side storage and allow the port to compete for other products which the port does currently not handle.” These investments show the
confidence Doyle Shipping Group has in the potential of Greenore Port after years of extremely challenging conditions due to the economic climate in Ireland. “In 2006 the port had a record year for throughput and by 2012 the port’s throughput had fallen by more than 50 per cent.
This is something we are currently addressing to increase business. Despite this difficult time, there are many opportunities ahead for the port. The Irish economy is recovering strongly with GDP expected to grow by between three per cent and four per cent per annum for the next few years,
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Profile: Greenore Port
Essentially we are trying to build a port for the future so all investment will be carefully scrutinised to ensure our clients get the maximum benefit which will have hopefully see imports and exports grow; we hope that Greenore Port will have a significant role to play in this recovery.” In addition to these market expectations, Niall also sees opportunities for the port to become more active in the logistics of renewable energy products, due to storage constraints at some of Ireland’s larger ports. “The port is home to a company who manufacture tidal turbines and we hope to handle a wind turbine for the first time at the port in the second half of this year,” he explains. Moreover, with growing
HANLON TRANSPORT LTD Haulage, Storage & Logistics
Over 30 years experience in the Transport Logistics Industry Muchgrange • Greenore • Co Louth Telephone: 00353 42 9373136 • Fax: 00353 42 9373308 Email: management@hanlontransport.ie • www.hanlontransport.ie 48 - www.shippingandmarine.co.uk
demand for Ireland as a location for cruises, there is also opportunities to attract cruise liners to the port thanks to Greenore’s unique and picturesque location. With further investments in the pipeline, the future looks positive for Greenore Port as it continues to upgrade its current systems and work practices while also focusing on delivering a competitive package that can meet the needs of its loyal customer base. “Essentially we are trying to build a port for the future so all investment will be carefully scrutinised to ensure our clients get the maximum benefit,” concludes Niall.
Greenore Port
www.greenoreport.ie • Ireland’s only privately owned commercial port • Deep-water port on Ireland’s East Coast • 2.5 million euros invested since January 2015
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Profile: Österreichischer Lloyd Seereederei (Cyprus) Ltd
Steaming ahead since
O
riginally founded as a shipping company in 1836, family-owned Österreichischer Lloyd Seereederei (Cyprus) Ltd (OL) has remained adaptable to the challenges of an evolving global shipping industry with its re-inception as a ship owning firm in 1951 and the establishment of a ship management subsidiary in 1991. Developed to serve both in-house and third party vessels trading from Limassol in Cyprus, the subsidiary operated in this manner until July 2008, when OL undertook a strategic conversion of its operations; a move that resulted in the withdrawal of its services as a third party manager and a core focus on ship ownership. It was at this key point in the company’s history that it changed its name from Österreichischer Lloyd Shipmanagement (Cyprus) Ltd to 50 - www.shippingandmarine.co.uk
1836
Österreichischer Lloyd Seereederei (Cyprus) Ltd and all shares of the company were transferred to Captain Eberhard Koch’s holding. Proud to be steaming ahead in the competitive container market, the company benefits from experience in a broad spectrum of vessel types, from container ships, bulk carriers, reefer vessels, chemical and oil tankers, to cruise vessels, PCCs and multipurpose vessels (MPP). Taking the strategic decision to specialise in MPPs, OL today boasts a young and solid fleet of five multipurpose geared vessels with two main engines and fuel-efficient operations as well as two multipurpose general cargo vessels that are operating in a range of projects involving cargo, dry bulk, container and general cargo. Committed to quality management, OL exclusively recruits from its part owned organisation, MED CREW
Ltd, Malta to ensure all officers and ratings are highly experienced, well trained and possess all required national and international licenses and certificates. As such, careful consideration goes into crew selection, with the majority of staff boasting long and loyal service records. Since it was previously featured in Shipping and Marine magazine in December 2014, the internationally recognised company has witnessed strong growth in its container market segment thanks to an increase in charter activities and charter rates. “The supply and demand outlook for our specific segment, multipurpose containerships below 1000 TEU is very favourable due to a surge in demand for smaller ships on intra-Asia trades and with other regional trades like East & West
Photos: Opposite page: MCP Villach aft, below: MCP GRAZ cranes lifting cargo
offering extensive management skills to not only our own vessels but to those of other shipowners sharing our philosophy. We are further considering increasing our own tonnage under in-house management for which our present shore based compliment can accommodate with ease and without the necessary of immediate future recruitment. The considered tonnage increase would more than certainly be registered under Cyprus, a reputable white flag!” Appointed to the board of directors of the Cyprus Shipping Chamber in 2015, Captain Koch also holds the post of Vice President of the Cyprus Shipowners Employees Association (CYSEA), is chairman of the CSC Labour Affairs Committee and an active industry member of the Cyprus Shipping Promotion Working Group. “I am a passionate advocate
Africa. The container markets are closely linked to GDP so demand is expected to increase, especially in our company’s fleet main trading areas of Asia, South Africa, East & West Africa, Australia and New Zealand,” begins Captain Eberhard Koch, chairman, CEO and partner of Österreichischer Lloyd Seereederei (Cyprus) Ltd. “Meanwhile, the future for feeder services looks good, with an Index of +10 per cent. However, the 2500 / 2800 TEU sector has calmed down considerably since mid June 2015 and is on its way southward; this trend has become quite clear and significant,” he adds. Operating in a market that is ripe for opportunity, OL refuses to rest on its laurels and instead is looking to increase its tonnage under inhouse management, as Captain Koch notes: “We are in the position of www.shippingandmarine.co.uk - 51
Profile: Österreichischer Lloyd Seereederei (Cyprus) Ltd
Below: Capt. Koch
and collectively working very hard to not only extend the maritime cluster overall in Cyprus but to equally encourage and ultimately convince owners, globally, to direct their fleets and / or additional tonnage under the Cyprus Flag,” he highlights. Advantages of registering under the Cypriot flag, which ranks 10th in size internationally and represents the third largest fleet in the EU, include the strategic location of Cyprus, which is based at the crossroads of three continents; low ship registration fees, low annual tonnage taxes, no tax on dividends received by a ship owning company and no income tax on emoluments of officers and crew. With the majority of its vessels outperforming the Moore Stephens Operating Cost benchmark annually for the last seven years, OL and its team of 200 loyal seafarers is proud to be steaming ahead in a competitive market. However, to
retain a leading reputation, Captain Koch says the company is investing in its internal systems upgrade and also anticipating partnerships with equity investors, with the objective of elevating its already established platform and capture significant value through investing in feeder container tonnage. “Global indications show that few owners or investors will order new feeder container tonnage and the projected feeder supply shortage is due to the need for more container feeder vessel. As the vessel size on main lane river trades have increased, more containers per voyage are being transported; this is an ideal time to invest!” he concludes.
Österreichischer Lloyd Seereederei (Cyprus) Ltd
www.oelsm.com
• Cypriot Resident Shipowner • Young, solid fleet • Looking to partner with like-minded investors
variety of important and trending matters on an international shipping level with regard not only to regulatory / legislative issues but also, operational, commercial and market demands,” says Captain Eberhard Koch, chairman, CEO and managing partner of Österreichischer Lloyd Seereederei (Cyprus) Ltd.
T
aking place in Limassol on September 13th to 16th, Maritime Cyprus 2015 is a biennial international shipping conference that has grown to become one of the most significant of its kind in the world. This status has given Maritime Cyprus a prominent position in the calendar for those connected to the shipping industry; an impressive list that includes shipowners, shipmanagers, charterers, international maritime organisations, bankers, brokers, lawyers, accountants and delegates from other shipping services entities. First organised in 1989, Maritime Cyprus operates with the goal of enabling important and current issues in the international shipping industry to be presented by distinguished speakers and discussed by the international shipping community. “Such prestigious and important events are necessary for all shipping industry professionals to ‘get together’ and openly and honestly discuss all facets of shipping under one roof. As an Owner, resident in Cyprus, I feel proud that this global forum is hosted bi-annually on this beautiful island and covers a
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“This year’s conference will address the topic Shipping: Game Change, and we expect that it will also focus on the vital matters that concern the international shipping industry. Issues that need to be discussed include policy and regulatory, economic and environmental matters, as well as, geopolitical and energy developments and the forecasting of the economic recovery within the shipping industry. Purely from an owner’s position, excessive pressure is exerted toward us (owners) and indeed felt from international, bodies such as IMO, ILO, ICS and so on. Whenever new legislation is released, we are usually burdened economically, commercially and operationally; ballast water management and scrubbers are two prime example of this.” Other issues that will hopefully be highlighted upon include the rescue at sea crisis in the Mediterranean, the use of low sulphur fuel and the upcoming deadline for compliance by 2020, and the efforts to bring in further CO2 emissions despite the shipping industry already reducing its total CO2 emissions by more than ten per cent between 2007 and 2012. With a diverse range of significant and current issues relating to the maritime industry ready to be discussed, Maritime Cyprus is certainly not a conference to miss.
Profile: Höegh Autoliners Höegh St. Petersburg
Investing in the
H
future
öegh Autoliners has been a pioneer in the international shipping industry since it was founded as Leif Höegh & Co by Mr Leif Höegh in 1927. Originally operating as the owner and operator of oil tankers, the company went through a transitional period and diversified into new activities such as transporting cars with lift on/lift off vessels in the 1960s. This development resulted in the formation of a joint venture with Ugland in 1970 and the establishment of Höegh Ugland Auto Liners (HUAL). This integral part in the company’s history was the basis for it becoming a world leader in ro/ro operations. Restructured into two separate
entities in 2006, Höegh Autoliners and Höegh LNG, with Leif Höegh & Co Limited as the common holding organisation, the owners went on to relocate Höegh Autoliners shipowning activities from Bermuda to Norway in 2008; the same year that the company acquired a fleet of 12 car carriers and six newbuilding orders from AP Moller – Maersk (APMM) and agreed to APMM becoming a minority shareholder with 37.5 per cent of the shares in Höegh Autoliners. In 2009 APMM purchased a further 1.25 per cent of the company, taking its shares to 39 per cent. “Höegh Autoliners engages approximately 50 vessels, owned and chartered, in a global deep sea trading pattern, and another 17 in regional
short sea operations through joint ventures. We came from a port-toport PCTC (ro/ro) operation, to now diversifying into short sea, terminals and logistics, but still sticking to our vehicle and break bulk roots. We have a diversified customer portfolio, and carry about two million car equivalent units annually in deep sea, whereof approximately 60 per cent are factory new cars and pickups. The rest is made up of high and heavy, break bulk and used cars. Among the largest customers in volume are General Motors, Renault Nissan, Daimler, Ford and BMW,” explains Øyvind Ervik, Head of Short Sea and Logistics at Höegh Autoliners. Aware that regionalisation or localisation of manufacturing is one
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Profile: Höegh Autoliners
Höegh Target
Höegh Shanghai
Loading of a crane on theHöegh Africa
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of the clear trends of today thanks to usage of trade agreements, protection from currency fluctuations and environmental regulations, Höegh Autoliners made the strategic decision to invest in short sea, terminals and land based logistics services. “Our response to these trends is to try to capture some of the regional growth through short sea, and joint venture has been the model we have chosen. We also see that increasing regionalisation and complexity in the supply chain leads to more transshipments, and we are engaging in terminal work both to capture growth, but also to ensure a high quality of transport also when transshipments are taking place,” says Øyvind. Within the short sea business segment the company witnessed relatively strong growth in Europe until the slow European economy and the conflict between Russia and Ukraine caused a sluggish market; however, areas such as the Black Sea show opportunities for growth. “Outside Europe, Mexico to US is growing, and we are quite hopeful also for both North East Asia and South East Asia. Additionally, there will be increasing coastal business both in China and India,” says Øyvind. Further discussing issues within its business sector, he continues: “The global PCTC market is not very strong at the moment, and a lot of the global indicators point towards very limited growth this year. The exception seems to be the US market, which is still going strong. “We counter these challenges on several fronts, by increasing focus on break bulk, adjusting our trade systems with focus on maintaining good cargo balance and high utilisation in our systems, as well with the aforementioned focus on short sea, terminals and logistics.” A key part of these efforts is the company’s investment in a New Horizon class post panamax vessel. The first vessel, Höegh Target, was delivered in June, and another five will be delivered in the next 18 months, as Øyvind highlights: “The Horizon Class is the largest PCTC in the world due to its Post Panamax width of 36.5 metres. As the expansion of the Panama Canal will be complete towards the middle of 2016, the 32.3 metre width restriction becomes obsolete, and this we intend to take advantage of. The vessel also boasts the latest innovations in fuel economy, cargo handling and impact to the environment. This vessel class will be the next workhorse in our global trading systems, and as such be part of our core fleet for many years to come.” The first in a series of six Post Panamax vessels, the Höegh Target has a car carrying capacity of
Cargo waiting to be loaded
competing with other Gulf ports as it is competing with ports on US West Coast and East Coast,” says Øyvind. Having made these strategic investments, Höegh Autoliners can look to the future with confidence as it continues to focus on operational efficiency and phasing in its new vessels. “With the new Horizon class coming into our fleet we will grow in market share in the breakbulk segment, and our short sea and terminal engagements will grow significantly, but again in line with a more rapid growth in those markets,” concludes Øyvind.
8500 and is estimated to emit 50 per cent less CO2 per car transported than a standard car carrier. In addition, the company has also invested in a new terminal and vehicle processing centre in Freeport Texas, which is a wholly owned subsidiary,
Horizon Terminal Services. “We see changing competitiveness between rail, truck and ocean which we believe will create a renaissance for the US Gulf ports as a gateway to and from the US central and southern states. As such this new facility is not as much
Höegh Autoliners
www.hoeghautoliners.com • Leading global provider of transportation and logistics services • Operates a fleet of PCTCs • Will take delivery of six ground-breaking new vessels in next 18 months
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Profile: docking solutions
In the
D
dock
evon based Docking Solutions has produced bespoke pontoons, bridges and access systems to meet the specific needs of its clients for almost two decades. Since its establishment in 1998, the innovative company has developed strong relationships with its diverse customer base, which includes port and harbour authorities, marina owners, consulting engineers and other organisations such as the Ministry of Defence (MoD), RNLI and National Trust. Able
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to offer market leading durability, sustainability and cost-effectiveness, Docking Solutions also adheres to the latest ISO standards to ensure optimum quality. Highly capable of offering a complete solution to customers, Docking Solutions benefits from the long-term expertise of its design engineers, fully trained fabricators, knowledgeable installers and naval architects who all work at the company’s site in Totnes. All workshops are located in a large undercover fabrication facility, which has its own integral blasting and painting enclosure; the site also provides access for pontoons up to 30 metres long and has direct access onto the River Dart. With 17 years of experience under its belt, the company has developed its own ‘signature’ design pontoons, which are constructed of a spiral welded twin steel tube to ensure a robust platform for both industrial and commercial use. These high quality, low maintenance pontoons have a design life of 25 years and are manufactured
with an emphasis on recycled materials. For heavier designs, welded tubular floats are used to provide both strength and stability; these can be constructed in sections that are typically up to 30 metres long, with a range of fixed or flexible joint options also available. Bridges of both steel and aluminium are built to the same high standard. Light weight pontoons have been created to form the company’s modular range, which was developed in response to market demand for a more economic pontoon. The modular float design consists of steel box floats that are positioned in each corner of the pontoon deck frame. The majority of Docking Solutions’ pontoons are constructed from thick wall, large diameter tubular steel, which, when arranged in a catamaran configuration with welded cross tubes, provides an extremely rigid and stable platform. This strength and versatility allows the company to design for buoyancy, loading and geometric demands, without having to rely on the deck frame for strength. In Docking Solutions’ warehouse, the
floats are fully welded then fully grit blasted to meet the internationally accepted Standard SA2½ and finished in a two component high build solvent free epoxy coating to 440 microns. All floatation components are previously pressure tested to guarantee they are watertight. Should customers require a longer life cycle for the product, Cathodic protection is an option. Alongside pontoons, the company’s product porfolio also includes bridges and bank seats, fender panels, wave screens, boat storage cradles and special applications for customers including water authorities, fish farmers or energy generators in need of a unique solution. One example of this is the company’s work with energy giant EDF in the first quarter of 2014, which involved the supply of two transfer stations at Hartlepool. For this contract, Docking Solutions delivered a 38 metre long, three metre wide pontoon and access bridge, which enabled two 20 metre support vessels to be serviced at the same time. Through its ability to deliver high quality, long-lasting solutions, the company has developed an excellent reputation in the market, with between 30 per cent to 40 per cent of its order book coming from repeat business. A recent contract was announced in the first quarter of 2014, with Docking Solutions tasked to supply the MoD with two gangways to ensure access to vessels from the shore. The contract followed a previous MoD project at Devonport Dockyard, which involved Docking Solutions manufacturing four floating maintenance platforms. In August 2014 Docking Solutions won a prestigious contract from the RNLI, as part of the charity’s
Coventina project in Poole. The work consisted of the design, manufacture and installation of galvanized steel pontoons and aluminium access structures at the RNLI’s North Quay and West Quay lifeboat construction site. The pontoons reached a total length of 70 metres at North Quay and 40 metres at West Quay, with each pontoon up to 23 metres in length and 3.5 metres in width. The Coventina Project is a major investment for the charity, which involves the complete demolition of the existing lifeboat maintenance centre and construction of a new cutting edge shipyard and lifeboat centre. As many of the company’s previous contracts come from networking and exhibiting, Docking Solutions was
back at Seawork International in June 2015, where it showed attendees the benefits of its two main products, medium-heavy pontoons and gangways. With harbour masters returning time and again for new pontoons that can be custommade or replacement programmes, Docking Solutions could exhibit these highly recommended products with confidence. Proud to play an integral part in major contracts across the UK, Docking Solutions is certain to remain afloat in a market that requires high quality, bespoke results.
Docking Solutions
www.docking-solutions.co.uk • Industry leader in tubular steel structures • Manufactures bespoke solutions • Recently exhibited at SeaWork International
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Profile: Ciramar Shipyards
The whole
nine
yards F
ounded in 1984 by Naval Architect and Marine Engineer, Mr Luis Contreras Pena and son Mr Luis E Contreras Brea, Ciramar International Trading Co., Ltd. Shipyards (CITCL) today is recognised as a well-reputed marine facility that specialises in afloat repairs, new construction, marine engineering and conversions. A Dominican Republic company, Ciramar, which stands for Construction, Engineering, Repair and Marine Rentals (acronyms in Spanish), focuses on the naval and maritime industry that operates under the Free Zone regime. Capabilities include repair, maintenance, ship conversions, design, shipbuilding for ships, platforms, yachts, barges and naval craft in general. Focused on its vision to become the leading facility for ship-repairs and shipbuilding in the Caribbean Region, Ciramar Shipyards strives 58 - www.shippingandmarine.co.uk
to continuously improve facilities and enhance its working practices to ensure an optimum service to customers. Moreover, to remain competitive and highly efficient, the shipyard also constantly looks to renew and modernise its logistical, technological and human resources, which thus projects a strong industry of corporate pride and prestige for the Dominican Republic. Having grown over the years to approximately 450 staff, Ciramar Shipyards can handle routine dry dockings and specialised machine repairs with a prompt, efficient and high quality level of service; key values that the company has retained for more than 20 years. Other benefits for customers include Ciramar Shipyards providing the most competitive rates in the area and its strategic location, based just 800 miles from Panama. In addition to this, the shipyard boasts excellent weather conditions that have
only a few days of rain per year on average. Regardless of a project’s size, Ciramar Shipyards goes above and beyond to ensure customers receive the best service possible. With 20 years of experience in ship repairs, the company has strived to gather a team of well-trained and competent employees who are flexible in their abilities to handle almost any customer request in a quick and efficient manner. Meanwhile, Ciramar’s department of engineering and design offers services in naval architecture with detailed and innovative designs that meet the requirements and specifications of customers as well as classification societies. Certified by America Bureau of Shipping (ABS), American Welding Society (AWS) and approved by Germanischer Lloyd (GL), Russian Maritime Register of Shipping (RMRS) and Bureau Veritas (BV),
customers can be confident in their expectations of receiving security, quality and efficiency. With facilities including floating dock DF-I, which has a length of 61 metres, width of 14,02 metres, depth of four metres and lifting capacity of 960 tonnes; floating dock DF-II, which has a length of 155 metres, width of 24.6 metres, depth of seven metres, lifting capacity of 7.200 tonnes and crane capacity of 2x6 tonnes; floating dock DF-III, with a length of 173.66 metres, width of 33.1 metres, depth of 8.5 metres and lifting capacity of 20,000 tonnes, the shipyard is ideal for new construction projects and conversions. As such, Ciramar Shipyard has worked on projects including patrol boats, barges, landing crafts, floating hotels and tugs. Other facilities at the shipyard include a pontoon berth, at a length of 138 metres and width of 13 metres, and a floating crane, at a length of 44.2 metres, a width of 14.2 metres, a depth of 2.3 metres and crane capacity of 30 tonnes. To ensure optimum quality, the company uses the most advanced techniques in engineering and design and merges these advantages for customers with a competitive cost in comparison to other shipyards in the region. In addition, because the Dominican Republic is a signed member of CAFTA (acronyms in Spanish of Free Trade Agreement Central America – Dominican Republic), materials imported from the US are at a lower price due to being free of customs duty. As a shipyard that is authorised by the government of the Dominican Republic to operate under the free zone regime, Ciramar is thus able to export duty free to anywhere in the world. Another benefit for customers is the strategic alliances that the shipyard has with organisations including Damen Shipyards, in the Netherlands, for consultancy and technical support. Other services available at the shipyard include sandblasting, steel renewal, painting, shaft seal replacement, mechanical propulsion,
sewage systems, pump repair or replacement. In addition, Ciramar Shipping offers emergency repair services in any port around the country. To further enhance its presence, Ciramar signed an agency agreement with Del Mar Marine Corp. in May 2014, which will allow the firm to promote Ciramar’s docking and facilities in the Dominican Republic as well as the shipyard’s services on a global scale. The agreement was signed during the Maritime Week Americas (MWA) event at Riu Hotel, Panama City, at Ciramar’s booth. Following this development, Ciramar Shipyards became a member of ISES Association, Ltd. (International Ship Engineering Service Association), which has an objective to unite a quality worldwide service network of members who can provide
electrical, mechanical, electronic, manufacturing and specialised services to the merchant marine and offshore industries across the globe. As part of the ISES Association, Ciramar will provide its high quality services in the Dominican Republic, while also supporting the Caribbean area. With long-term expertise and a firm belief in ‘good marine practices’, the future looks positive for Ciramar as it continues to deliver customer satisfaction through cost-effective, high quality solutions, on time, every time.
Ciramar Shipyards www.ciramar.com
• Twenty years of experience in servicing the maritime community • Offers full service, from design to outfitting • Strategic location
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Profile: B. Rekencentra NV
Logical
logistics
F
ounded in 1983, family run Belgian company B. Rekencentra develops software for logistics management across a range of sectors including container terminals and aviation. “At the start we were specialised in developing tailor-made software solutions,” begins Karel Tavernier, Technical Director and son of the original founder. “However, slowly but surely we have developed a range of standard products in the field of logistics and over recent years we have seen an increase in demand from aviation and the container terminals.” The company’s goal is to establish and maintain collaboration based on mutual trust, which in turn enables it to provide innovative and efficient solutions to the variety of business challenges faced by its customers. Its services encompass the entire trajectory from conception and analysis to design, development, implementation and integration. Rekencentra is a small company with currently around 35 employees and as such is able to offer an unrivalled service to its customers, of who include global names such 60 - www.shippingandmarine.co.uk
as DHL, Cathay Pacific and Atlas Air. “We are more flexible than our competitors,” highlights Karel. “We only have two levels of management, which means we have very short decision circles. Our after sales service is what we really concentrate on, as we want to be the best in this area. We have to be able to react to demands and questions immediately, so for each project there is a single point of contact, most often a project leader, who knows the product and client inside out. Therefore, if a request comes in for an enhancement or modification within a couple of days we can give the client a concept of the changes and a price offer. This has lead to some really good customer relations, some of which have lasted for over 20 years. I don’t see the way we work as a classic client-supplier relationship, but as a common effort to reach a common goal.” The core software product for container terminals from Rekencentra is Interman, an integrated and user-friendly terminal management system that allows the operator to follow units and wagons across the whole cycle from entry to exit. As
with its entire offering of standard programmes, the company has the vast knowledge and experience to develop a bespoke solution to any needs. “The product is very flexible,” explains Karel. “We have a general rule base that can be configured by either us or the client, but sometimes there are a lot of requirements that we cannot just configure and demands some additional development. We always start with the standard implementation and then we look at the requirements of that specific site and find the answer for those problems. To some extent then, the majority of our projects become customised in some way.” One such project of recent note is for the ATO Antwerp container terminal, which posed a particular challenge for Rekencentra. As Karel outlines: “It is a complex terminal with complex truck movements so we were working on it for over a year to make sure everything ran as it was supposed to. It went into operation in June and has gone well.” With 45-50 per cent of its turnover coming from the aviation industry, 35 per cent from container terminals and
the rest from tailor-made projects, the markets at the moment are tough for Rekencentra. With an increase in fuel prices and a general slowdown in the markets that it operates in, Karel is finding that customers are being more patient when it comes to spending capital. Despite this, however, he is generally positive: “I have been travelling around the world to the Far East and China to get new contracts, and whilst companies are interested it just takes a little longer for them to get the capital expenditure approved, but I am confident that contracts will come in. Particularly in the airline industry competition is tough on the world stage, but companies do recognise that for cargo we have the best product available.” Over the remainder of 2015 Karel is optimistic about bringing more airlines onboard for its Sable system, the Weight and Balance software package designed for air cargo, as well as developing more systems with Interman. “For the Interman project we are currently working on the implementation of two terminals in France and a brand new terminal
in Luxembourg,” he says. “The Luxembourg terminal is probably going to be the biggest in Europe and is looking to specialise in l’autoroute ferroviaire (‘the rail motorway’), which involves having special wagons for road trucks to sit on, reducing their actual travel distance. It is particularly challenging because it is very big and the way of planning the loading of wagons is more complex than usual. This project must be ready for the first quarter of 2016.” It is through these special projects and its continual process of development that Rekencentra drives innovation through its industries, and continuing to do so is top of the company’s focus as it looks forward. With a number of developments in the pipeline for both the aviation and container terminal you get the impression that no challenge is too big or too small for Rekencentra to solve. It is not just its world-class knowledge of software development, but also the in depth understanding it has of the industries it serves and the problems that face its clients that makes it successful. Coupled with the
positive attitude that emits from Karel, a steady commitment to this approach looks set to secure the company’s successful future.
B. Rekencentra NV www.rekencentra.be
• Develops specialist logistical software for container terminals and aviation • A strong commitment to innovation • A committed focus on customer relations
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