no. 2 2010 – 23rd year corporate magazine for the Wilh. Wilhelmsen group
Celebrating the first 150 years
Passing the torch:
Meet Thomas and Wilhelm Wilhelmsen
A new life In honour of our thousands of Filippino seafarers we have entered into a long-term relationship to provide housing and the prospect of a future to the children in a newly opened SOS Children’s Village.
Heavyweight agents "down under" Wilhelmsen Ships Service agents in Port Hedland, Australia handle an amazing 1.6 million tonnes of cargo per year – each.
COVER PHOTO: China is presenting a new face to the world; young, enthusiastic and proud. Meet Jennifer Xu, head of HR/OD globally for Wilhelmsen Ships Equipment (pages 54-57) See also our special China section on pages 28-43. (Photo: Oscar Malpica)
contents No 2 2010
04 WW MILESTONES
Published by: Wilh. Wilhelmsen Holding ASA Corporate communications NO-1324 Lysaker, Norway
08 OUR FIRST
Publisher: Group vice president Benedicte Gude Editor: Arild S. Johannessen Editorial contributors: Hans Chr. Bangsmoen Kaia Means Karl Braanaas Bjørn Pedersen Bjørg Ekornrud Don Pyle Einar Chr. Erlingsen Sanjiv Rastogi Karin T. Erlingsen Neal de Roche Arild B. Iversen Rupert Saunders Arild S. Johannessen Stacey Trodal Yuri Leshchynskiy P. J. Villegas Nakul Malhotra Marianne H. Wang Oscar Malpica Swamy Yeddanapudi Design and layout: Red kommunikasjon AS
www.redkommuikasjon.no
Printer: TS Trykk, printed on paper approved by The Swan, the official Nordic ecolabel CIRCULATION: 8500 copies Technical Publisher: Forlaget Media AS, NO-3110 Tønsberg, Norway
Positioned for profitable growth
150 YEARS
”Even though we can look back upon a long and proud history, my vision is that our best years are still ahead,” says new group CEO Thomas Wilhelmsen.
Dear colleagues, On 1 October I succeeded Ingar Skaug as Group Chief Executive Officer in Wilh. Wilhelmsen Holding. I feel humble about my new challenge and the responsibility that comes with this position. At the same time I am confident for two very good reasons: First of all, what we produce in the WW group is the result of more than 14 000 employees going to work each day doing their best. Together we are strong, and I will do my outmost to be a team player and to build upon all the good things achieved.
10 TIME FOR CELEBRATIONS YOU are invited to share your special WW moments with colleagues all over the world.
14 HISTORIC HIGHLIGHTS 23 CURRENT AFFAIRS 24 A MARATHON RUNNER Wilhelm Wilhelmsen has passed on the torch to his son Thomas after 47 years in leading positions in the company.
28 FIVE ON ENERGY Five Norwegian ship owners are working together in a project to find the best system for reducing fuel consumption and emissions.
30 HUMANITARIAN AID LOGISTICS
Secondly, we have in place a new company structure positioned for growth. The separation of our shipping and logistics activities into Wilh. Wilhelmsen ASA has already proved a success. We have raised more capital to seize the new opportunities that will certainly arise, and if we look at the share price the international markets like the development for this vital segment of our business.
How do we improve the humanitarian aid logistics, to help more people when disaster strikes?
33 10 QUESTIONS Hege Raade Solstad started her work as area director Black Sea/ Caspian on 1 November.
34 PEOPLE & PLACES 38 ON SITE: PORT HEDLAND The WSS ‘heavyweight agents’ in Port Hedland, Australia handle an amazing 1.6 million tonnes of cargo per year – each.
44 WELCOME HOME
28
44
WW sponsors were given a warm welcome at the new SOS Children’s Village in the Philippines.
You've got news? Give us a tip! Please send an sms or call +47 481 91 921 or +47 934 01 974 for stories that you might think are interesting in WW World. You may also contact us by email: ww.world@wilhelmsen.com. Since our group consists of our 14 000 employees located in over 70 countries worldwide, we are dependent on you telling us in the editorial staff what's going on. Tip of the month will be rewarded with 250 USD.
New people principles and leadership expectations will be essential in reaching our vision of Shaping the Maritime Industry.
We will certainly celebrate the anniversary and in this issue of WW World we will be presenting the concept of “150 Moments” – where all employees in the Wilhelmsen Group have been asked to share their best moments from their many various workplaces together with all of us. Keep up the good work, let’s share moments and let us all make 2011 a year to remember!
54 CRYSTAL CLEAR We’ve received a Crystal Clear feedback from one of our customers, world leading luxury cruise liners Crystal Cruises.
58 NOx CARE The interest for WSE’s NOxCare systems are taking off these days.
62 SLOW DOWN! By slowing down a few knots, world shipping can save the environment for enormous amounts of harmful emissions.
63 THE WORLD AS I SEE IT “What recession?” asks WSS area director Nakul Malhotra, who sees the world from Dubai.
64 WW HISTORY Offshore – dream and drama.
2 WWWORLD 1 2010
The second leg of our business, Wilhelmsen Maritime Services with its more than 6000 employees continues to deliver good results despite the financial crisis that has affected the markets negatively for the last two years. The top management has ambitions to grow even further, and my job representing the holding company is to enable the right conditions for sound and profitable growth. Next year will be special. Working in a company that has more than 150 years of continuous operation is quite rare. I am proud that Wilh. Wilhelmsen has grown from a local ship owning enterprise in the coastal town of Tønsberg to become a global maritime industrial group with presence in more than 70 countries.
51 NEW EXPECTATIONS
TIP US!
The CEO's letter
Thomas Wilhelmsen
60
10 WWWORLD 1 2010 3
WWmilestones
News in brief
The right results – the right way
august: TiMC signed a new contract with Huyndai Heavy Industries in Korea to provide cargo tank insulation system on two LPG ships for Indonesian owners Pertamina.
One important focus area for Wilh.Wilhelmsen Holding AS and Wilhelmsen Maritime Services (WMS) next year is increasing knowledge and awareness about governance.
Wilhelmsen Ships Service’s new service
station in Szczecin, Poland became fully operational. The first order was the delivery of 25 Unitor life rafts to the cruise vessel Seven Seas Voyager. Wilhelmsen Marine Engineering
was chosen to handle electrical work and HVAC upgrades on Stena Lines’ passenger ships Germanica III and Britannica. The two vessels operate Stena’s Gothenburg – Kiel route.
Text and photo: Arild S. Johannessen Already, more than 450 managers have participated in governance awareness sessions. It was time to refresh our framework for governance, which dated back to the establishment of Wilhelmsen Maritime Services in 2005”, says Olav Eggesbø, governance director in WMS and adds: “We have experienced changes in the marketplace and internally over the last five years. Also, important governance elements had not been fully understood or acted upon, and an alignment of governing elements was needed after the restructuring of the group. We needed to create a better understanding of our governance framework in order to increase compliance and secure global uniformity. For the customers, strong governance makes us a reliable supplier, and common policies and processes ensure that we deliver high quality products and services at all locations across our network. Overall, strong governance is an enabler to reach our growth ambitions.” Several key managers from different parts of the group have contributed in the project
Wilhelmsen Ships Service Jeddah office completed an 18 month project setting up a cement factory in Saudi Arabia. WSS’ part in the project was to move equipment and parts totaling 32,000 tons over difficult road networks destined for the construction site.
September: The project team: Some of the team that has worked extensively with governance the last year. From left Olav Eggesbø, Øyvind H. Størdal, Simone Møkster, Ingvild Naas and Kim Kjærnet. of revitalizing our Governance framework. A result of this work is the introduction of what we call “Governing Elements”, consisting of six key areas: Vision, Values, Basic Philosophy, Leadership Expectations. Code of Conduct and Company Principles. The short version of the whole project is clear: Governance is all about the tools and methods to achieve the right results in the right way. In addition, the new governance content needs
to be communicated and implemented at all levels in the organisation. First stage of the process has been the increasing awareness of managers and executives within WMS as part of this year’s AOP process. Top management have been travelling all over the world to set focus and communicate what governance is all about. “The real implementation will be in 2011 where the managers themselves will run the
WSS wins prestigious Seatrade award Wilhelmsen Ships Service has been awarded the prestigious
Seatrade Award in the category of Best Ship Agent at The Seatrade Middle East and Indian Subcontinent Awards ceremony at The Palm in Dubai. The Awards are designed to celebrate and reward excellence and innovation in the maritime sector across the region over the previous 12 months. “We are delighted to have been awarded this honour,” comments Knut Brathagen, regional vice president for Africa, Middle East and Black Sea (AMB), at WSS. “The Award recognises WSS as a front-runner with our ship services offer in the maritime market.” The Seatrade Awards, which coincided with the Seatrade Exhibition in Dubai are by far the largest shipping awards ceremony in the region. The
4 WWWORLD 1 2010
Discussing governance: Thea Corwin from WMS Strategy facilitating a governance session for top management at Wilhelmsen Ships Service in Miami. same awareness sessions with their respective teams. To enable an effective and uniform implementation, each manager will be provided with a small facilitation kit including a presentation, a film and associated material such as a separate e-learning module. A Governing Elements booklet is also under production. Everyone will have a closer relationship to governance within second quarter of 2011”, says Olav Eggesbø.
Yarwil, partly owned by Wilhelmsen Maritime
Services, could celebrate the record delivery of of ship agent award sought to recognise customer service and efficiency, and new services offered. These are both categories that have been amply demonstrated by WSS. The company has introduced two new key offers in the past twelve months including the new Ships Spares Logistics and Ships Agency Re-Defined projects, which have considerably simplified administration and logistics for ship owners and operators. The panel of judges also considered contribution and commitment to the development of the maritime sector across the region, commitment to safety and quality, and social and environmental responsibilities, amongst other qualities.
1000
tons NOxCare40 in one month.
Wallenius Wilhelmsen Logistics
carried the world’s biggest mobile cone-crusher from Auckland in New Zealand to Melbourne, Australia for customer Screening and Crushing Solutions on WW’s MV Talisman. Wilhelmsen Ship Management Korea announced the recruitment of a new Japanese customer, San Clemente Shipping SA, which is part of the Imabari Group. Imabari is amongst the largest ship owners in the world with a fleet of more than 200 vessels. Wilhelmsen Ships Service opened a new warehouse in Vladivostok, to enable the company to provide its range of products to customers in the far eastern region of the Russian Federation.
The final component of the Unitor Local Application Fire Fighting (LAFF) System passed the IMO tests. The LAFF system is very attractive due to its low water consumption, reducing water requirements with 80%. WSS’ liferaft rental broke another record;
1000 deliveries in one month. Forecast for 2010: 20,000 exchanges.
october: Thomas Wilhelmsen, fifth generation of the Wilhelmsen family, succeeded Ingar Skaug upon his retirement on 1 October as new group CEO. EUKOR’s new vessel MV Morning Laura was taken
over on full technical management by Wilhelmsen Ship Management Korea upon its delivery from HHI shipyard on 7 October.
Wilhelmsen Ship Management Singapore took over management of the container ship APL Hibiscus. APL is one of the biggest container companies in the world. Also in October, WSM Singapore took over the management of MV Stove Trader as the fourth out of the scheduled seven vessels belonging to owners Eastern Bulk Carriers. Long-term partner SDV International Logistics once again selected Wallenius Wilhelmsen Logistics’ under-deck Ro/Ro shipping service on behalf of their customer, leading French manufacturer of motorboats Beneteau. Wilhelmsen Marine Engineering was awarded the contracts to deliver HVAC systems for two new 57 000 dwt bulk carriers being built at Jinling shipyard, China for owners Northshield Shipping and Blue Adventure Sea Trade.
Wilhelmsen Ships Service Germany signed a Safety Service and Life Raft Exchange Agreement as well as an agreement for Fire Rescue and Safety with the world’s largest heavy lift company, Beluga Fleet Management. The contract covers 51 ships. Wilhelmsen Ships Service finalized a deal with Frontline Management for the supply of liferafts to their worldwide fleet of 82 vessels. MV Asian Karat, owners Charisma Fleet, was
taken on full technical management by Wilhelmsen Ship Management, Malaysia.
november: Carnival Cruise Lines selected Wilhelmsen Marine Engineering as supplier of energy conservation solutions to four ships. All four will be completed by the end of July 2011.
Wilhelmsen Ship Management Singapore took over MV Super Challenge on full technical management. Wilhelmsen Ship Management entered
into an agreement with NetVision to implement its new Crew Management System (CMS) called COMPAS from Q3 of 2011. COMPAS is a state-of-the-art tool that allows easy and flexible information handling capacity for all aspects of crew management. ADM awarded Wilhelmsen Ship Management USA technical management of another of their big grain carrier vessels. The Harvest Peace thus became the third ADM owned ship to be awarded to WSM USA. Wilhelmsen Ships Service was appointed by Odfjell Tankers to provide ship agency service in Singapore. The agreement adds a further 20 port calls per month to WSS Singapore’s portfolio.
WWWORLD 1 2010 5
WWmilestones
Official supplier to solar powered ship
Mr. Wilhelmsen met with world leaders
MS Turanor, owned by PlanetSolar, is circumnavigating the globe powered entirely by solar power. Wilhelmsen Ships Service is on board as an official supplier. Norway: “This is proving
Solar-powered: For the very first time, a ship is circumnavigating the world by solar-power only. (Photo: PlanetSolar)
Tampa is back in business As the last of the vessels to be laid up after the financial crisis struck two years
ago, WW’s proud ship MV Tampa was reactivated and returned to business at the end of October this year. At one point in 2009, no less than 20 of Wallenius Wilhelmsen Logistics’ ships were laid up at the same time. So even though the activities have by no means returned to pre-crisis level, trades are picking up to a more normal level. MV Tampa was the oldest of the vessels laid up, and therefore the last one to leave her moorings. She went straight to Singapore for docking and maintenance. Tampa became world famous in August 2011, when she was the centre of media attention for more than a week. The Tampa crew had picked up 437 Afghan shipwrecked refugees, and was denied the right to set them ashore on Christmas Island by the Australian government.
6 WWWORLD 1 2010
how far the technology has advanced,” says WSS project logistic manager Bjørn Palmork. MS Turanor is a 31 meter long catamaran with a crew of six, and is the biggest solar-powered vessel in the world. It will also be the world’s first to make an entirely solar-powered round-the-world voyage. It was built in Kiel in Germany and sailed from there to Monaco in August, to start the world tour. WSS is the ship’s agent for the entire journey. Per Brinchmann, WW ASA vice president technical, says the project is partly sponsored by Wilh. Wilhelmsen and Wallenius Wilhelmsen Logistics (WWL), and has a basis in some of the ideas in WWL’s concept ship project Orcelle. “The maximum speed is 7 or 8 knots,” he
Mitsubishi Norway chose WW’s MV
Toreador as a unique party for
600 guests and 696 new vehicles to celebrate their 35th anniversary and to launch the new ASX model.
says, “but the sailing speed is generally about 5 knots. There are no sails, so if the weather is overcast there can be some problems.” MS Turanor will be in Cancun, Mexico during the climate change conference there in December. More information on the project can be found at www.planetsolar.org. “Five years from now, we will find elements from this project in commercial shipping,” says Palmork. When MS Turanor reaches the Panama Canal it will pick up some exclusive cargo from the WW-vessel MS Talisman – two cylinders containing 16 litres of Linie aquavit that will circumnavigate the globe a second time, this time using solar power. The aquavit will be re-bottled and used in connection with WW’s 150th anniversary next year.
The importance of free trade to
ensure world peace and prosperity was Mr. Wilhelm Wilhelmsen’s main message to the G20 summit meeting in mid-November. Mr. Wilhelmsen was given the rare honour of being invited to speak at the annual G20 meeting, where the ministers for finance and national bank directors from the most powerful countries in the world gather to discuss world problems. Also present are the leaders from IMF (International Monetary Fund) and the World Bank. These leaders represent 85 per cent of the world’s value creation, and two thirds of its population. Mr. Wilhelmsen was invited to address the meeting because of WW’s strong position and rapid growth in Asia during the last decade. – My main theme was the importance of free trade, and the necessity of removing restrictions to free trade. Trade is the key tool for ensuring peaceful coexistence between nations and to bring them out of poverty. I also made a stand for a better system for financing trade, which I see as decisive for a free float of goods between the world’s nations, says Mr. Wilhelmsen.
WWL ranked as top ocean carrier In the August issue of Logistics Management, Wallenius
Wilhelmsen Logistics was ranked in its annual reader survey as the top ocean carrier, scoring higher overall than the 13 other carriers and leading the scores for value and customer service. The magazine’s “27th Annual Quest for Quality Awards” scores transportation carriers and third-party providers on customer satisfaction and performance excellence. More than 5,400 readers voted in this year’s survey. “This is a testament to the quality of our services and an indication of the hard work and dedication of our employees - from sales and customer care to the folks working in ground and ocean operations around the world,” said John Felitto, executive vice president and deputy head of Region Americas.
WWWORLD 1 2010 7
Wilh Wilhelmsen 150 years
Celebrating
the first 150 years The Wilhelmsen story began in 1861 in the small coastal town of Tønsberg, Norway. During the next 150 years the company developed into a global maritime industrial group with three main segments - shipping, logistics and maritime services. But 150 years is more than time. It is an unbroken story of ships criss-crossing the world’s oceans. It is thousands of men and women providing the best customer service. Not least, it is a century and a half of memories - moments in time that built the WW history. In this anniversary section of WW World, we will explore this long and impressive history, where the Wilhelmsen family has been at the helm for five generations. Let us also introduce you to our anniversary concept of “150 moments”, where we all are invited to share moments and participate in the upcoming celebration.
8 WWWORLD 1 2010
WWWORLD 1 2010 9
Wilh Wilhelmsen 150 years
“Our best years are still ahead” In 2011, the Wilhelmsen family has been majority owners for 150 years. New group CEO Thomas Wilhelmsen (36) is certain there would be no maritime industrial group to celebrate if it hadn’t been for the long-term ownership – and that the future may be even more prosperous. Text: Arild S. Johannessen Photo: Kaia Means
The last years we have created a unique platform of competence and a network that has no competitor in the shipping industry. The major challenges in the coming years is to utilise this to grow even further. I see a lot of upcoming opportunities,” says Thomas Wilhelmsen. The Wilh. Wilhelmsen group is currently at its largest level ever, with revenue of approximately 2.5 billion USD dollars, a workforce of 14 000 including officers and crew, and three strong business legs: Shipping, logistics and maritime services. “The expansion of the group coincides with the development of people. I firmly believe in building cross-business competence and an internal labour market that gives our colleagues the opportunity to develop and climb the career ladder within the group,” says Mr. Wilhelmsen.
nies survive that long, and most family-owned enterprises split up in the long run. “Furthermore, without the family’s longterm horizon on strategy and investments, a stock-listed company would have been forced to sell out its best parts during bad times. But we are still here, stronger than ever.” And he has ambitions on behalf of WW: “In 2011 we shall all celebrate, in all countries and markets where we are present. And let’s all make it a wonderful experience. But operational-wise we can not live in the past. My job now, with the rest of the management and all our dedicated employees, is to lay the foundation for another 150 years.”
Celebrating the first 150. Thomas
Ready to expand. “Prepared for profitable
Wilhelmsen says he is proud to be celebrating the company’s first 150 years. Very few compa10 WWWORLD 1 2010
the last months the WW group has restructured, diverting the shipping and logistics operations into Wilh. Wilhelmsen ASA, and creating Wilh. Wilhelmsen Holding ASA as the new parent company. “Growth is important, but not growth
"What we aim for is healthy, profitable growth. We have a clear strategy, we have financial muscles and we have the human competence."
growth” has been Thomas Wilhelmsens slogan since he took the helm as group CEO. In
at all expenses. What we aim for is healthy, profitable growth. We have a clear strategy, we have financial muscles and we have the human competence. There are a lot of opportunities on the horizon for the Wilh. Wilhelmsen group. My vision is that our best years are still ahead of us,” says CEO Thomas Wilhelmsen.
Wilh Wilhelmsen 150 years
Our story told through your moments The cornerstone of the Wilhelmsen philosophy has always been the belief that our employees are our most valuable resource. Now, entering our 150th anniversary we invite you all to join in and shape our celebration through sharing your favourite Wilhelmsen moments! HOW TO PARTICIPATE There are three ways to participate in finding the 150 best Wilhelmsen moments:
1. Go to wilhelmsen.
com/150moments and upload your moment.
2. Send your moment to 150moments@ wilhelmsen.com. Remember to give your moment a title and a short description.
3. Send your moment by regular post to (remember to include your full name and phone number!): Wilh.Wilhelmsen ASA P.O.Box 33, NO-1324 Lysaker Norway
12 WWWORLD 1 2010
ext year will add another milestone to our memorable history. Stepping into our 150th year we are truly in the position we want to be – shaping the maritime industry. Naturally this anniversary represents a chance to look back on all the major achievements and events in our past, but more importantly: it gives us an opportunity to take a better look at our present and look ahead into our future.
N
150 Moments. 150 Moments is all about capturing and sharing your greatest Wilhelmsen moments. The heart of the campaign is an online digital experience. From 10 January 2011 you can upload your moments on wilhelmsen.com/150moments and start sharing them with the rest of the Wilhelmsen world. You can comment on other moments and even vote for the moments you like the most. These personal Wilhelmsen moments could really be about anything. It could be moments from the past or present, or even reflections or wishes for the future. It is all up to you to tell us something about your life in our company! And you can do so in almost any form: On wilhelmsen.com/150moments you can share
your stories and upload pictures and video clips. If you do not have access to a computer you can send your moments to us by mail and we will publish them for you. Great prizes to win. The 150 favourite
moments, picked by all of you through our monthly run competitions, will be rewarded with customized iPads and digital cameras. All 150 moments will be candidates for 10 exclusive VIP invitations to the main celebration event in the Oslo Opera House 1 October 2011. A 24-hour worldwide celebration. We
encourage a worldwide celebration in 2011 – preferably on 1 October, which is the group’s foundation day! We would like to cover the celebration progress as it travels around the globe through all time zones and connects with every Wilhelmsen site along the way. And again, everyone is invited and encouraged to share their celebration moment and greetings online with the rest of us throughout these 24 hours – so we truly can share this historical and special moment with all. Join in and share your moments!
WWWORLD 1 2010 13
Wilh Wilhelmsen 150 years
“We will share our moments”
WILHELMSEN SHIPS SERVICE, ALEXANDRIA, EGYPT:
WW World has travelled to China, the Philippines and Egypt and asked employees if they want to share their moments with the rest of us. The answer was a very distinct YES! Here are some of the moments shared:
SHANGHAI, CHINA:
Carol Wei
Wilhelmsen Ships Service Market Analyst “My best moment at work is when I get to solve other people’s problems. I get to do this because I’m a super user of our HR Management System so I help colleagues whenever they have a problem with their account.”
Vivian Wang
Wilhelmsen Ships Service HR Assistant “Working in HR really puts me in front of helping people; that’s is something I truly appreciate of my work. On a more personal level, one of the most enjoyable moments at work is in the little things: like when I grab tea and just chat away with colleagues during a break.”
Stella Zhou
Trond Tonjum
“I really enjoy negotiating for space with the Tokyo Trade team…I guess you could say my best moment is my daily work. I really enjoy what I do…try to get as much space as possible!”
“My moment is 5.5 years long! Having had the opportunity to lead a great China team, establishing new products and increasing business and financial returns is an opportunity that will be part of my life forever.”
14 WWWORLD 1 2010
Manal Hamza
Moataz Afifi
IT Coordinator Wilhelmsen Ships Service, Alexandria
Front desk and HR assistant Wilhelmsen Ships Service, Alexandria
"One of my favorite moments in Wilhelmsen was back in 2007. We had finished setting up the network for one of our new clients, CSAV Norasia and in a management meeting, Gamal Yacout, our Financial and IT manager, patted me on my shoulder and complimented me on a job well done! It was really nice that our hard work was appreciated by the top management."
“Back in 2009 we had our first naming of a Wilhelmsen vessel in Egypt. This was also the first time that I have ever visited a port (Ain Sukhna) and been onboard one of our vessels. When I saw the huge vessel Toreador, I was amazed by the size of it, and I realized that I am working for a large, global company. Seeing WILHELMSEN in big letters on the side of the vessel made me very proud and happy to be working for the company".
“My favourite Wilhelmsen moment was at the Annual party in 2009 when I received a reward for more than doubling the Hanjin import performance and making a big jump, especially in the FOB (freight on board) performance. I keep the reward by my bed.”
Supervisor Wilhelmsen Ships Service, Alexandria
WW MANNING CONFERENCE, MANILA, THE PHILIPPINES:
Harald Lundestad Wallenius Wilhelmsen Logistics Assistant Trade Manager China
Amir El Shaikh
Wallenius Wilhelmsen Logistics Head of China
Wilhelmsen Ships Service Operations & Business Improvement Manager “My most memorable moment was the period when I was working with the formation of Wilhelmsen Maritime Service. It was a great period in my career; there was a lot of excitement to bring about a new company. I remember our goal was to reach profits of 140 million dollars and we thought it was a lot; we are about to reach 1 billion next year!”
Tushar R. Pradhan
Standley M. Jupson
Anto C. Cheerakuzhy
“In my service 23 years of service in Wilhelmsen, I have more than one moment to share, however one is very special to me: On 12 june 2010 my eyes were partly filled with joyful tears when I was handed over command of newbuilding MV Toscana at MHI Nagasaki Shipyard in Japan. It was a dream come true for being rewarded by Wilhelmsen in entrusting a new vessel to me.”
“One moment that I would like to share was when I personally met Mr. Wilhelm Wilhelmsen, our main owner. I used to see him only in WW World magazine and it was really an honour to meet him in Oslo during the senior officers conference in 2004. The reason why I work in the WW is because the Wilhelmsen group cares and look after you.”
“When our good vessel MV Tampa rescued all those refugees at sea in 2001, the whole world was looking at that as an heroic action. I was proud to hear the comments from people around my neighbourhood, which is a small place in southern part of India. Where “Wilhelmsen” name become famous due to this memorable event. Only a reputed company can do such things in this world.”
Master, MV Toscana
Master Mariner, MV Toronto
Chief Engineer, MV Tai Shan
WWWORLD 1 2010 15
Wilh Wilhelmsen 150 years
How to become 150 years old? Not many companies still exist 150 years after they were founded. So what is the recipe behind WW’s success story?
rarely been the pioneer, thus avoiding many of the problems faced by those who enter a new business venture too early. “Our strong liner traditions are perhaps the best example of this; whenever WW became involved, it was frequently in the company of others who had already gone ahead. We were invited by Barber Lines to become a partner in their existing trade; the history of our NOSAC engagement is somewhat similar. But every time WW decided to go for an option, we were totally committed. There has always been an element of creativity, a strong will to succeed and a sound sense of economy.”
Text: Einar Chr. Erlingsen Oslo, Norway: The authors behind the an-
niversary book “WW 150 years – the history and the stories” believe they have found some answers. Former head of corporate communications Hans C. Bangsmoen and maritime historian Bård Kolltveit have interviewed dozens of people, and worked their way through literally thousands of documents, press cuttings and a number of other sources to be able to present the 500 page, large format company history book (in both Norwegian and English editions) in time for the anniversary on 1 October 2011. At the same time, in-house historian Bjørn Pedersen has updated the company “fleet list”, which by now comprises some 440 vessels in a separate book (English only), to be launched on the same date. Both books will be given as gifts to the WW employees who would like one. All in the family. “One obvious answer is
that WW has always been a family-controlled company, combined with the ability to trans-
The authors: In-depth research. The two authors Hans C. Bangsmoen (to the left) and Bård Kolltveit photographed on board a recent voyage with the WW ship Tijuca. fer motivation from one generation to the next,” says Mr. Kolltveit. “There has also been a strong sense of order each time ownership has been transferred, as well as an ability to maintain focus on the target once a decision has been made.” Mr. Bangsmoen agrees, adding that although WW has always been among the forerunners in their trades, the company has only
Historic highlights 150 years is a long time, and a lot has happened since WW was founded. Here are some highlights from a proud and dramatic history. Text: Hans C. Bangsmoen/Bård Kolltveit/Einar Chr. Erlingsen Photos: WW
The third history book. This new WW book has two predecessors; one published at the 100 years anniversary, the second one after 125 years. While the first book centred on “steel and money”, the second was mostly focused on the many colourful company characters through the years. “This time we wanted to write quite a different book, by going behind the scenes and trying to explain why and how things happened,” says Mr. Kolltveit. “To avoid the risk of becoming ‘too dry for reading’, we decided at a very early stage that we also wanted to include the good stories,” says Mr. Bangsmoen. The result is a very readable book, not to be read at just one sitting, but rather a book to return to, time and time again. Perhaps until the next company anniversary?
A propeller made of wood When challenged to come up with one of their many good stories, the two authors replied with the following: “An old ship had been ordered to China for dismantling. In keeping with regulations, it carried a spare propeller on board. Some entrepreneurial crewmembers soon agreed that it would be a waste to deliver this very valuable piece of brass with the ship, and decided to sell it for their own purses. The propeller was hoisted ashore one dark evening and immediately sold. The very next morning the Master informed the crew that there had been a change of plans, and that the ship would be taken out for one more voyage. So what to do? The crew entrepreneurs took immediate action, had a propeller made out of lightweight balsa wood and painted it in shining brass colour. The fake would probably never have been detected except for one unfortunate event: the Master was taking an early stroll on the bridge when his eyes fell on two crew members who were easily carrying between them what appeared to be a heavy propeller, weighing several tonnes!” 16 WWWORLD 1 2010
WWWORLD 1 2010 17
Wilh Wilhelmsen 150 years
Company founder: Morten Wilhelm Wilhelmsen.
Talabot: WW’s first steam ship was purchased in 1887 and started the “T” name tradition.
To Oslo: This was the first WW headquarters in Oslo after the move from Tønsberg in 1917.
San Joaquin: The first WW tanker. Purchased in 1913.
The early years:
From sail to steam:
Into the liner services:
Tankers and war:
Wilh. Wilhelmsen began in Tønsberg, a seafaring town on the western side of the Oslofjord. At 22, Morten Wilhelm Wilhelmsen was still three years under the full legal age when he established his company on 1 October 1861. He had part ownership in several vessels, but it was the 1865 purchase of a two-sevenths share in the wooden barque Mathilde, built in 1840, that marked the beginning of WW as a ship owning/ship management firm. Twenty-five years after its founding, WW controlled 11 ships with a total of 6,165 net register tons.
The 1880s saw an increasing shift from sailing ships to steamers. Halfdan Wilhelmsen, son of the founder, had spent two years as a trainee with major shipbrokers abroad and envisaged clearer than most people what was coming. On his return in 1886 he was determined to concentrate on being a steamship owner. In 1887, Talabot, a steam freighter of 1,800 dwt. was purchased. After one year’s service the ship showed a net result of 28 % of the purchase price; so good that ever since Talabot the letter “T” has been synonymous with WW nomenclature. The last of WW’s 23 sailing ships was sold in 1902, while 56 steamers were added to the fleet between 1887 and 1911.
Establishing overseas shipping lines, based on each nation’s exports and imports, was a dominant feature of Western sea trade before World War I. A conflict between liberalistic principles and the constant shortage of venture capital, however, gave Norway a later start in liner shipping than many other maritime nations. “The Norwegian Africa and Australia Line” (NAAL), established by WW and Fearnley & Eger in 1911, was therefore based on joint sailings with the Swedish Transatlantic and the Danish and Swedish East Asiatic Companies.
WW was to take a leading, if brief, part in the early years of the tanker trade. From 1912 onwards WW ordered ten oil tankers, representing 92 % of Norway’s entire tanker fleet at the time. A dozen WW ships were lost in the war between 1914 and 1918; however, reckoned in tonnage, the fleet was larger at the end of the war than at the beginning – 41 vessels totalling 298,974 dwt. The number of tramp steamers had been halved, while the liners and tankers had doubled. In 1917, WW moved its administrative headquarters to Oslo.
America: WW’s first sea-going motor ship from 1921.
Malta-Margit: Margit Johnsen Godø received three medals after her heroic war effort. Her captain Albert Toft stands proudly in the background.
Tagus: An officer photographed on board in the mid-1950s.
Golden age: The 1960s were the golden age of the old liner vessels.
“For Speed and Service”:
War losses:
New growth and prosperity:
A golden era:
The slogan was introduced in the pre-war years, signalling yet another shift in the company’s development. In 1917, WW had become engaged in cross-trade liner operations, independent of domestic export and import. America (III) became WW’s first sea-going motor ship when she was delivered in 1921. In 1927, an agreement was made with the American Barber Steamship Company for WW to provide tonnage for Barber’s regular service from New York to the Far East, marketed as Barber-Wilhelmsen Lines. In 1925-26, WW introduced a series of 13 knot motor liners. The first, Tourcoing, was hailed as the year’s winner of the so-called “wool race” from Australia to Europe, to be beaten successively in the following years – by other, ever faster and ever bigger WW liners.
Twenty-six of WW’s 54 ships were lost and 52 WW sailors gave their lives during World War II. Several heroic WW ships became part of World War II history, including Torrens, the Ship of Good Cheers, that transported 63 000 American troops and war equipment safely to their destinations throughout the war years. Talabot was another legendary WW ship. After running a gauntlet under almost constant attack she arrived at Malta with much needed supplies in March 1942 – and never left. The burnt-out vessel had to be abandoned in the port of Valetta and towed out to open sea and sunk after the war.
The delivery of Talabot (III) in 1946 heralded an ambitious rebuilding programme. When WW celebrated its 100th anniversary in 1961, a total of 52 cargo liners, nearly all newbuildings, had joined the fleet. With 72 ships totalling 846,000 dwt. the company had reaffirmed its position among the world’s foremost cargo line operators. The fleet also counted nine tankers of 217,000 dwt. Tartar, WW’s first tanker in almost three decades, was delivered in 1951. In 1956-57, after the first Suez crisis, the seven WW tankers showed a bigger profit than the 52 cargo liners combined.
The 1960s was the golden age for the liner vessels, but things were also changing. Tricolor (V), delivered in 1960, introduced a new WW cargo liner design, while the appropriately named sister ship Tønsberg was delivered just in time for the company’s 100th anniversary. The long-established cooperation between WW and its Swedish liner consorts Transatlantic and Broström was expanded further through the 1960s.
18 WWWORLD 1 2010
WWWORLD 1 2010 19
Wilh Wilhelmsen 150 years
Tombarra: One of the first specialised Ro/Ro’s, delivered in 1973.
Tender Tarpon: One of the more than 30 vessels in the Wilhelmsen offshore fleet.
Sold out: One result of the financial difficulties was that the old WW headquarters in downtown Oslo was sold.
Into Ro/Ro’s and containers:
Going offshore:
A company in crisis:
The means of sea transportation were rapidly changing with the introduction of containers and Ro/Ro ships. From the 1970s onwards, WW’s liner services concentrated on the new types of ships. The company took delivery of Toyama in 1972. With a capacity of 2,200 containers and a top speed exceeding 30 knots, she was one of the world’s largest and fastest container ships. The company’s future, however, was to be decided by another type of ship: the purpose built Ro/Ro vessels. In 1984, WW became a partner in Norwegian Specialized Auto Carriers (NOSAC). Between 1985 and 1987, four purpose-built car carriers entered NOSAC on behalf of WW.
WW’s biggest step into new activities during the 1970s was undoubtedly the involvement in the offshore oil industry, including both supply services and drilling operations. Beginning with Tender Trout, delivered in 1972, more than thirty supply ships and other highly sophisticated service vessels for the offshore industry joined the Wilhelmsen offshore fleet in the next fifteen years. (See Historic Corner on the back cover for further details)
The years between 1975-1985 had been very expansive, with big investments in Ro/Roships, offshore vessels and oil platforms. The booming US – Middle East trade collapsed with the Iran-Iraq war in 1979, while the offshore sector was similarly affected by a dramatic drop in the oil prices after 1985. Heavily debt-ridden, and with dwindling profits from shipping as well as offshore, the WW management acted quickly and decisively to avert the impending crisis and had most of its loans rearranged. The entire supply fleet was sold by the end of 1987, the oilrigs in the following years.
Dubai: Cargo plans are studied by Barwil employees prior to a ship’s call.
A new beginning:
An empty desk: There were 50 empty desks in WW after the Partnair tragedy in 1989.
Taronga Nick-named ‘the ultimate cargo machine’ she was also to become WW’s last combined container/Ro/Ro carrier.
Joining forces: The merger of the liner and car carrier operations of two former competitors created a truly global leader.
Hit by tragedy:
A strong come-back:
A truly global leader:
No sooner had things started to turn for the better when WW was hit by a terrible tragedy: 50 colleagues lost their lives when a chartered aircraft crashed on 8th September 1989, en route to Hamburg for the delivery of a new Ro/Ro ship. Only through whole-hearted support from each and every WW official and a lot of the “Wilhelmsen Spirit” was it possible to continue operations and rebuild the administrative organisation within a relatively short time.
In the early 1990s, WW’s financial situation gradually improved, making it possible to acquire 100 % of the shares in The Norwegian America Line in 1995. From now on, WW focused increasingly on car and Ro/Ro-traffic, while container transportation was drastically reduced. Taronga (IV), delivered in 1996, became WW’s last combined container/ Ro/Ro carrier. Between 2002 and 2004, all remaining vessels of this type were turned into pure Ro/Ro-carriers.
In 1995, WW and Swedish car carrier operator Wallenius Lines (OW) decided to merge their liner and car carrier operations in Wallenius Wilhelmsen Lines (to become Wallenius Wilhelmsen Logistics in 2006). The new name underscores that the carriage between ports represents but one part of an all-inclusive transportation and terminal service, on land and sea, from producer to consumer. This global concept was carried even further in 2002 with the establishment of the car transporter EUKOR, owned jointly by WW (40 %), OW (40 %) and the Korean car manufacturers Hyundai and Kia.
20 WWWORLD 1 2010
Among the measures taken to minimise the effects of the difficult times were also the establishment of Barwil Agencies and Barber International. The idea was to keep as many of its competent people as possible through offering agency and ship management services also to external customers. A bright spot in an otherwise difficult situation was an agreement in 1985 with Brazilian interests for a joint venture, based on orders for two of the world’s largest oil/ ore carriers. The 310,000 dwt. Docefjord and Tijuca were secured on a 15-year charter for the transportation of ore from Brazil to Japan, combined with crude oil transportation from the Middle East to Brazil. In 1989, aided by a general turn for the better in the international shipping market, the restructuring began to show results. ScanCarriers, Barber Blue Sea and Open Bulk Carriers were incorporated into one round-the-world service, run by nine of the world’s largest Ro/Ro-vessels, again making Wilhelmsen Lines one of the world’s leading operators of overseas services.
WWWORLD 1 2010 21
Wilh Wilhelmsen 150 years
current affairs
Well prepared for new growth Wilhelmsen Maritime Services (WMS) was established six years ago. Much has been achieved since then – and the future looks bright. Text: Einar Chr. Erlingsen
Tampa heroes.
The Tampa incident:
orway: WMS was born out from a vision of shaping the maritime service industry. The original agency activities in WW were organised in Barwil Agencies and ship management in Barber International. Both were among the world leaders in each of their fields, but these were very fragmented markets without dominating actors. “WW Management believed that we by consolidating the activities of the two companies would be able to achieve the necessary strength for further expansion,” says CEO in WMS, Dag Schjerven. WW’s Board of Directors gave their approval in September 2004, and WMS became reality 1 January 2005. Unitor was acquired and integrated in WMS just six months later as was the Callenberg Group in 2008, helping to establish WMS as a world leader in selected system solutions, products and services.
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In August 2001, the Tampa rescued 438 refugees off the coast of Australia, and was threatened with military action if she entered Australian territorial waters with the refugees on board. After a week of political as well as human tension, monitored by media all over the world, a compromise was found when an Australian transport vessel brought the refugees to Nauru (an island in the Pacific ocean). Tampa’s master Arne Rinnan and his crew, as well as WW’s shore side staff, had demonstrated to the entire world that the unwritten law of rescue of life at sea overrules any petty political considerations.
Shapers: From Wilhelmsen Ships Service, Copenhagen.
Orcelle: The presentation of the visionary concept ship Orcelle was met with huge interst.
A shaper of the industry:
Into the future:
On 1st January 2005, Wilhelmsen Marine Services (WMS) became a reality with the merger of the management and agency companies Barber International and Barwil Agencies. With the acquisition that same year of Unitor, a leading supplier of ship’s equipment, WMS became a world-wide provider of all aspects of maritime competence and service, with 340 offices and 150 agents in more than 80 countries.
At its 150 years anniversary, WW is well prepared to meet future challenges. Among these are environmental issues, which without doubt will play an increasing role in world shipping in the decades to come. Some of the visions for a cleaner maritime environment are incorporated in the visionary concept ship Orcelle, drafted by WWL in 2005 to show a possible path towards a pollution free future. Additional environmental initiatives have been taken by other parts of the WW group. To stay in touch, you need to be at least one step ahead!
22 WWWORLD 1 2010
worlds largest maritime network.” “We managed with only a 14 per cent revenue drop in the crisis year 2009, and most importantly; with a decent profit” says Schjerven. Exciting new prospects. Mr. Schjerven
anticipates good results from WMS also for 2010. “We have continued to capture market shares, while we are still following the new building market with a certain concern. Short term the orderbook for the shipyards still looks quite healthy but the intake of new contracts is very limited.” “As a response we have launched an internal programme to seek further commercial and operational synergies between Wilhelmsen Ships Equipment and Wilhelmsen Maritime Engineering, and the findings this far looks very promising. “Another area where we are looking for growth – in a slightly longer term, however – is within the environmental side. There is no doubt that new and stricter regulation regarding emissions to "sitat" Etureritis alibusam air and water will be introduced, invelectur, que porisciet the only question is when.” voluptatium suntio. Et dolo “As an example, our ballast dunt essimaiorrum aut faccull water treatment system has already been approved by the Can take the pressure. “We have thus International Maritime Organisation (IMO) created a platform that has proven to stand and type approval has been granted following some tough times during the turbulent past the full-scale installation onboard WW’s vescouple of years,” says Schjerven. ”WMS has sel Toronto. The IMO convention for ballast in many ways acted as a buffer towards the water treatment will most likely be ratified during 2011, opening up for a huge market, cyclical times in shipping. We have developed calculated at several billions USD over the a diversified and robust portfolio, covering next ten years. We will be well prepared,” the whole value chain (newbuilds as well as vessel and cargo operation), most vessel types concludes Dag Schjerven. and segments, and not to forget; through the
WMS at a glance (2009 figures) ➜➜400 offices in 73 countries ➜➜6.000 employees and 8.000 seafarers ➜➜More than 53.000 port calls handled ➜➜Products and technical service delivered to more
than 22.000 ships ➜➜138 vessels on full technical mangement ➜➜Supply of crew to another 300 vessels ➜➜Fire fighting systems delivered to 1/3 of all new buildings ➜➜Operating revenue MUSD 871,5 ➜➜Operating profit MUSD 79,0 (9,1%)
WWWORLD 1 2010 23
Ww profile
A marathon
runner
passes on the torch “Remember that we are marathon runners in our family, not sprinters. We are in this race to stay for a long time. So take care of your energy level.� This was the only advice from Wilhelm Wilhelmsen to this son, Thomas, when he passed on the torch. Text: Einar Chr. Erlingsen
Ww profile Wilhelm Wilhelmsen
Wilhelmsen was ready to enter the company as a partner with his father Tom and Niels Werring senior and junior; the latter two represented the Werring family, which at that time was a major co-owner in the company.
Born: 08.06.1937 Education: Examen Artium 1955 and Com-
mercial College 1956.
Marital status: Married in 1967 to Ninni
Musaeus, 3 children.
A wise choice. WW in 1963 was very differ-
ent from the present-day company. The liner trade was the dominant activity in addition to bulk and tank. It soon became clear that the company was facing a dilemma: Traditional liner trade was on the downturn to be replaced by container and ro/ro transport. “So, what were we going to concentrate on? It took quite a while before we made our decision. We started off with container transport to the Far East, ro/ro to Australia and New Zealand. Taking things step-by-step was in line with our culture and also suited the partners we had then. It gradually became clear to us that in order to succeed in the container market you had to be a major player, and we did not have the
Positions / experience:
1956 Fearnley & Eger, Deckboy 1956-1958 Norwegian Air Force, Corporal 1960-1961 Vereinigte Linienagenturen Heeckt & Koch, Trainee 1961-1962 Wilh. Wilhelmsen Agency, Sydney, Trainee 1962-1963 Dodwell/Aal & Co, Tokyo Broker Assistant 1964-1992 Wilh. Wilhelmsen, Partner 1992-2000 Wilh. Wilhelmsen ASA, Chairman 2000-2003 Wilh. Wilhelmsen ASA, President and Group CEO Skips AS Tudor, President. 2003-2010 Wilh.Wilhelmsen ASA, Chairman Other appointments:
Chairman Saga Petroleum Chairman Det norske Veritas. Member of the Council Norwegian Shipowners Association. Member of the Board Sponsor Service Member of the Board NorgesInvestor AS Chairman For Arts Council Member of the Board Norwegian Shipping Research Institute (Marintek) 1971-1979 (Chairman 1976 -1979)
A
fter 47 years in leading positions in the company of the same name, Wilhelm Wilhelmsen earlier this year was able to pass on responsibility to his son with a good feeling of satisfaction. Thomas represents the fifth generation of the Wilhelmsen family. “I am very pleased to have sent the torch on in a good manner. The company is in great shape, with an efficient business model and well anchored in our areas of operations,” says the 73-year old Wilhelmsen.
Bred for the job. If anybody could be said to be born into a job, Wilhelm Wilhelmsen definitely was. As the eldest son in the fourth generation after the founder, Morten Wilhelm Wilhelmsen, he was christened with the same name and from an early age he knew he was destined to take over the helm. “I was never in much doubt, even though I was given a large degree of freedom. I knew that my father would have been terribly disap26 WWWORLD 1 2010
tory the liner trade has been the backbone of our activities. It represents our strongest position, the biggest goodwill and the best contacts. Our business is by nature very industrial, with a large organisation, many employees and many transactions. We are perhaps not so quick off the bat or as daring as you have to be in the tanker business. We are most successful when we take the time to consider our options. That is one of the reasons that we can celebrate our 150th anniversary next year,” says Wilhelmsen. When problems were plenty and business was bad at the end of the 1980s, many doubted the company’s further existence. He never did: “We always had a good financial overview and consulted our creditors 18 months before we would have had any solvency problems. We had excellent advisors and learned that as long we have control, sufficient liquidity and a good overview; that inspires confidence. Shipping is a cyclical industry with an incredible ability to surface again after the downturns. That is when you need lenders with a long-term perspective and shipping competence. We had those associates. We were never a lost case.”
It’s still important to know the business Recovery came once more. In the 1990s WW refrom the shop gained lost positions and gained floor on up” new ground. A new upturn.
pointed if I had chosen another career path. Things were well arranged for me and I gained the experience I needed in order to run the company one day,” he says. “When you are born into the fourth generation of a family-oriented company - even though the market has always been a business partner - this is a strong motivation it its own right.” “Was money ever an incentive?” “When you’re in business, you naturally want to make money; after all, we are rated on our results. To me personally, money has never been a motivation. I have never been a big spender and don’t have extravagant personal needs, but naturally I’m pleased when business goes well.” The young man’s journey to the top was not without challenges. According to family tradition he had to get his hands dirty – literally speaking. Earning 35 dollars per month, his first job was as a deck boy on a ship owned by another Norwegian company, Fearnley & Eger. His shipmates were a bit sceptical to begin with, but this soon passed as he did exactly
the same job as they did, got just as dirty and just as exhausted. “The social boundaries disappear. I remember this as a good time and would have liked to stay on for longer,” he reminisces today. “But there was so much on my agenda, like getting a more theoretical education than I was able to get at sea.” Like father, like son. When his son Thomas
began to prepare his entry into business, times had changed and demands for a formal education were greater. Nevertheless, his father insisted that he also had an apprenticeship where he got his hands dirty. “His mother felt terribly sorry for him, but I didn’t. He was fine. Spending time at sea and working in an office writing manifests and other routine paper work is good background for the future leader of a shipping company. It’s still important to know the business from the shop floor on up, even though a formal education is far more important nowadays than when I was young.” In 1963, at the age of 26, Wilhelm
financial backbone for that. Gradually we decided to go in for ro/ro transport; we would rather be a large fish in a small pond than the other way round. This has later proved to be a correct choice. “The fact that we initially chose to concentrate on two different activities has also proved to be crucial. We were able to build competence and a solid organization. The acquisition of The Norwegian America Line (NAL) was another key decision. It led to the merger with Wallenius and following that our activities in Korea with Eukor. Later this resulted in the very successful engagement in the Korean logistics company, Glovis.
“If I were to emphasize one of the many highlights it must be the merger with Wallenius in 1999; the fact that we had the foresight to understand that this was industrially correct at a time when neither of us really needed a merger. It was an impressive decision – from both parties.” Establishing Wilhelmsen Maritime Services (WMS) was another highlight. “Merging the shipping agencies and the manning services into WMS and the acquisition of Unitor resulted in a package that has proved to be very successful. In just five years we have built the largest company of its kind with a solid business model that is less dependent on international up- and downturns than sea transport is.”
Consistent liner trade. During the 1970s WW also became a significant player in the offshore industry with Wilhelm Wilhelmsen heavily involved in building the business. “We were one of the foremost players, until the financial crisis hit in 1986 and impacted both the liner and the offshore activities at the same time. We had to choose once more – and we chose the liner trade. Throughout our his-
Concerned with the future. Retiring from day-to-day responsibilities does not mean that Wilhelm Wilhelmsen has ceased being interested in the future: “Globalization will continue to be the key to our continued growth and prosperity. If we want to continue to see growth we must include the third world countries. That is why it is extremely important that the Doha
negotiations conducted by the World Trade Organization are successful. We need to change the division of labour. We have created entire societies that exist on subsidies, something that is not sustainable in the long term. Growing wheat in Norway, for example, does not create increased growth. The challenge is to become even better at the things we are good at, like offshore, fish farming and shipping. “I recognise of course that the world is facing huge environmental challenges. I am quite optimistic in that respect. I believe that humanity in many generations to come will exercise its creativity to solve its problems, as long as it takes place in structured, organized forms. To WW the environmental challenges represent opportunities, not threats. We are already working to develop environmental products the world needs, and more are on their way. It is very obvious that the world’s shipping industry needs a new form of propulsion. We are actually using the same kind of engines that we have had for 100 years, based on the crudest parts of oil. New solutions will appear, representing an excellent challenge. Another challenge is how we as a company will adapt to the extension of the Panama Canal. A paradigm shift in international shipping is coming up, the dramatic widening of a sea lane. We are working on this already. Age as resource. Wilhelmsen has a clear
understanding of his future role: “I have a significant private capital management which I will follow up in the years to come. And I wish to be a resource for Thomas and the company. Age is an asset many places around the globe, so if I can contribute to maintaining old relationships, I will be happy to do so. But I am not going to be breathing down anyone’s neck. However, I will gladly give advice if asked.” “There is an artistic strain in the Wilhelmsen family – have you any of that?” “I think it must have passed me by, I’m afraid. Once upon a time I played the accordion, but that was a long time ago. However, my interest in opera and classical music has been part of my life for many years and has given me a lot of pleasure.” “Personally speaking, when is your best time?” “I am a privileged person, living a good life in many ways, doing things I enjoy. It’s outside in fresh air that I recharge my batteries. I enjoy hunting, fishing, tennis, golf, walks, skiing – in short, being active outdoors is what makes me feel good. I believe there will be plenty of time for that coming up.” WWWORLD 1 2010 27
Ww shipping
Team of five on energy Five Norwegian shipowners are working together in the Energy Management in Practice (EMIP) project to find the best systems for reducing fuel consumption and emissions. Text: Kaia Means
Five shipowners – Klaveness Maritime Logistics AS, BW Gas AS, Høegh Autoliners AS, Wilh. Wilhelmsen ASA, and Grieg Shipping AS – have joined forces to reduce emissions and fuel consumption from ships. Each of the owners has a test ship where the most accurate measuring equipment is tested and installed. The WW test ship is Tamesis, chosen due to its size.
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orway:
Huge savings potential. “It’s
Petter Jønvik one of our largest ships with the highest fuel consumption, so it has the most potential for savings,” says Petter Chr. Jønvik, WW shipping and environment manager. “A one percent reduction in fuel can mean to up to USD 100,000 in savings for each ship per annum,” says Jønvik. One of the biggest challenges for energy management is an inability to measure the effects of energy saving schemes. “We have many suppliers with various solutions for improvements. Each makes claims of a certain percentage reduction in fuel consumption, perhaps 2-5 per cent. The problem is, we have until now had no way of measuring if these claims were true,” says Jønvik. There are so many variables, including weather, currents and load, that accurate measurements of savings have been difficult. Environmental awareness. The first year of the EMIP project
involves perfecting the methods of measurement. When the measuring systems are up and running, reliable data on reduction of fuel consumption and emissions will be available from all five test ships. Another important aspect of the EMIP project is training, increasing environmental awareness and knowledge of technology development and industry best practices. “Through training we increase operating efficiency, create better understanding of the impact of standard operating procedures and create potential environmental and financial benefits as well as a competitive edge,” says Jønvik. The Norwegian Research Council is financing 40 per cent of the costs of the project, which lasts until May 2011. In May, EMIP will go into its second phase. Then the EMIP project should begin to give results in reduced emissions and fuel consumption. With 125 ships in an entire fleet a 1 per cent savings could translate to USD 12.5 million annually. “I think the potential for savings is much higher,” says Jønvik.
Test ship: Wilh. Wilhelmsen’s ship Tamesis plays an important part in an ongoing research project with the aim of reducing fuel consumption and emissions. (Photo: Håvard Solerød) 28 WWWORLD 1 2010
“A one percent reduction in fuel can mean to up to USD 100,000 in savings for each ship per annum."
State-of-the art: LNG tank and engine arrangement in a short-sea Ro/Ro vessel. (Courtesy of Rolls Royce, Norway).
Looking to LNG Will liquefied natural gas (LNG) become our next generation fuel? WW investigates possibilities of changing to cleaner energy. LNG is the cleanest burning fossil fuel, with no SOx, less NOx and less CO2 as compared to heavy fuel oil (HFO). But there are some challenges connected with using LNG as fuel in ship engines. “LNG has some clear advantages,” says Per Brinchmann, WW ASA vice president technical. “But there are some major challenges that must be overcome.” WW is participating in various projects aiming at making LNG available and viable for deep sea shipping in the future.
Per Brinchmann
Volume. One of the challenges of LNG is the sheer volume of the fuel.
Although it weighs about half as much as water does, it needs twice as much storage space. In addition it needs to be kept at temperatures below -160°C, the temperature at which natural gas condenses. Special storage tanks need to be designed to accommodate LNG as fuel. The volume of LNG affects the profitability of a cargo ship, as valuable cargo space is used for fuel storage. Both Wilhelmsen Marine Consultants and TI Marine Contracting are participating in a project investigating the possibility of incorporating the LNG fuel tanks into the ship structure, thereby maximising cargo space. The project is partly funded by the Norwegian Research Council. Availability. Another challenge is the availability of LNG for refuel-
ling. In Northern Europe LNG is available in some ports, although there is no standardised routine for delivery. But availability of LNG for short sea shipping is expected to increase in the coming years. Availability in ports elsewhere in the world, especially in the Far East, is so far rather limited. It isn’t possible to rebuild an old ship engine for LNG use, so the future LNG plans for the WW fleet concern only new-builds. Modern LNG engines may run on both LNG and HFO , enabling flexibility in fuel use. This type of engine may be an interesting option to meet the 2015 regulations in emission controlled areas (ECAs), imposing restrictions in the use of HFO in certain coastal areas. The ships would then use LNG inside the ECAs and simply switch to HFO when in the open sea. WWWORLD 1 2010 29
Ww LOGISTICS
Humanitarian aid logistics Wilh. Wilhelmsen is involved in a joint project, named Contribute, to improve the efficiency of current humanitarian supply mechanisms, to assist more people at a reduced cost when disaster strikes. Text: Einar Chr. Erlingsen
orway: “There is an enormous potential to improve disaster aid logistics. Out of the 15-20 billion dollars worth of disaster relief given each year, a staggering total of up to 80 per cent are logistics costs – and, even more mindblowing: approximately half of the logistics expenses are wasted before the relief aid reaches those in need”, says Vidar Hole, vice president logistics in Wilh. Wilhelmsen ASA. ‘On 10 January 2010, Haiti, one of the poorest nations in the world, was hit by a tremendous earthquake. When the tremors subsided, the capital Port-au-Prince was left in ruins, with hundreds of thousands dead or wounded. The world responded swiftly to the disaster by flying in thousands of tonnes of relief aid within days. However; due to the collapse of the country’s infrastructure and shattered state authorities, the medicines, food, and other relief goods mainly piled up at the city’s small and inadequate airport for weeks, while the people were sick and starving just kilometres away.
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A pattern of tragedy. Although what
AID TEAM: Pål Berg Lande (left), Vidar Hole (center) and Jonathan Sørbye are all involved in the Contribute project, which aims to develop more efficient logistic solutions for the world's humanitarian aid agencies. (Photo: Stacey Trodal). 30 WWWORLD 1 2010
happened in Haiti during those tragic weeks was worse than with most disasters, it was by no means exceptional. The international humanitarian response is frequently delayed by difficult communications, poor infrastructure, authorities and the general public in disarray. A typical response to natural disasters is to bring in aid as quickly as possible, without bearing in mind the local conditions that the relief workers will have to face. Delays, huge costs and losses are the inevitable results. In other words: many lives that could have been
saved are lost partly due to inadequate logistics planning. The Contribute project. Finding more ef-
ficient ways to transport relief aid is therefore the main purpose of the Contribute project. Contribute is headed by BI Norwegian School of Management, and in part financed by The Research Council of Norway, with contributions from the other participants, such as relief aid specialists Everywhere Services and Wilh. Wilhelmsen as experts on commercial logistics. Included on the Contribute ‘sounding board’ are the International Federation of Red Cross and Red Crescent Societies and MIT (Massachusetts Institute of Technology) in the US. “For example, during the Haiti disaster WW had a Ro/Ro ship waiting off Panama for cargo, close to one of Red Cross’ main contingency storages for relief aid,” says Vidar Hole. “With better coordination among the main relief aid agencies and disaster contingency plans, we could have reached Haiti within 36 hours after the earthquake. Since Ro/Ro’s - thanks to their aft ramp - can deliver cargo almost everywhere, we could have called at Portau-Prince itself, inside the main disaster area, and started to deliver relief aid immediately,” says Mr. Hole. “The docks were not operational until day 14, however we could have berthed our vessel with the stern side towards the dock and lowered the stern ramp on to a barge.” database for improved logistics. The
Contribute project was initiated only months ago, and has started its search for answers by looking into the past. Pål Berg Lande, WW WWWORLD 1 2010 31
Ww LOGISTICS 10 questions: HEGE RAADE SOLSTAD
To listen more than you speak is a good recipe for addressing cultural differences, says Hege Raade Solstad, who started her work as area director Black Sea/Caspian on 1 November 2010. Text and photo: Einar Chr. Erlingsen
You have recently moved to Dubai. What are your first impressions of your new work environment? A: The working environment in the office is
very nice; I am working with good colleagues, most of whom I have known for some years already. Dubai itself is a city I think it’s fairly easy to live in with a lot of things happening. There is also a big expatriate community here, making life easier for a newcomer to the city. I am not a big fan of snow and ice, so this is a nice change from Norway. Q: How would you describe your new job/responsi-
bilities? We’ve done it before: WW’s Ro/Ro ship Toba was the first vessel to arrive at the port of Kobe, Japan after a huge earthquake hit the city in January 1995. Toba brought a much-welcome cargo of fresh water to the distressed city. (Photo: WW archives)
A: The best way of describing my current role
is to be a good communicator, to work with passion and energy to help and encourage colleagues to work as a team to reach common goals. Q: Which countries are included in your area of
Holding, is at present part of a cross partner team mapping the logistics and other experiences from 63 major disasters worldwide from the last decade or so. “The results are being logged into a ‘disaster database’. Most natural disasters occur in areas close to the sea and require sea supported logistics. They frequently follow a similar pattern, as does the relief work. By analysing the past we will be better prepared to meet new incidents in the future with more efficient logistics,” says Mr. Berg Lande. By early 2011, the database will be effective, ready for the next step in the Contribute project; to have a closer look at relief aid logistics procurement today, and how this compares to alternative procedures. In 2011, we will also arrange some real life test operations, before 32 WWWORLD 1 2010
the project is ready for a worldwide roll-out amongst the leading relief aid agencies. Moving forward. The Contribute project is looking into a possible scenario where Ro/Ro ships that have been phased out of commercial operations could be stationed at key locations around the world, fitted out with basic relief aid equipment. This might also include field hospitals that could be made operational en route to the disaster area and take on board the first patients immediately upon arrival. The Ro/Ro’s have capacity to produce 20 tonnes of fresh water from sea water every day, and their decks could serve as base camp for the aid workers, until safe areas have been established on shore. “Another option is to use Wilhelmsen
Ships Service (WSS) around the world as local points of contact during a catastrophe. First hand knowledge about local conditions is always imperative during the early days of a disaster. It is also possible to use the extensive network of WSS to hire storage or office space, ship clearances, to arrange for land transportation and/or logistics planning in general. This is something we do already for commercial customers. WSS’ unique competence and presence in areas with inadequate infrastructure and even security hazards can be used to improve the efficiency of humanitarian response. This together with our ability to coordinate complex shipments throughout our global network would be of great value to a humanitarian aid organization,” says Jonathan Sørbye, project logistics analyst WSS.
responsibility? A: The countries in the Black Sea area
are Turkey, Bulgaria, Romania, Ukraine and Georgia. In the Caspian area we have Azerbaijan, Armenia, Kazakhstan, Uzbekistan and Turkmenistan. Q: Do you intend to travel much between offices? A: Yes absolutely, it is a big part of the job to be
visible in the offices, and to be out in the markets to meet customers and business partners. Q: Are you anticipating many cultural differences? A: Yes, definitely. Q: And how do you intend to cope with these
challenges? A: To listen more than you speak is always a
good rule! I also believe that meeting people face to face helps to clear away any misunderstandings before they occur. When a personal relationship is established it is so much easier to communicate and also accept differences. A common vision and set of values also helps.
director for maritime logistics in WSS. Q: What is the total number of employees in the
companies that you are in charge of? A: At present 260 people in all. Q: How will those employees become aware that
Q: What other job positions have you held
they have got a new boss?
previously? A: I have worked in the shipping industry all my life, but only the last six years in WMS/ WSS. I started working in a shipping agency in Oslo, first as liner coordinator and later as liner manager. Then I moved to ship owners Ivaran, and worked with trade management between North and South America. This was when I really decided that the shipping industry was right for me. Later on the company was sold, and I decided to move to Atlantic Container Line, where I worked for six years in sales management before I joined WMS in 2005, first as project manager for a couple of months before Barwil Unitor was established and I became vice president liner, then later on business
A: I have visited most countries in the area,
and have met many of the people already. Obviously I will also travel a lot more in the future, and as I said I do believe meeting people face to face is very important. Q: What will be your main job priority for the
coming year? A: My main priority is to grow the business in
the area. We have ships spares logistics and ships agency redefined as two new offers that we will introduce and sell to our customers. We will also develop our current customer base and look at new opportunities. I have a lot of good colleagues in the area, and together we are very determined to reach our goals. WWWORLD 1 2010 33
Send us your good stories
people&places
Have you got any stories or photos that you want to share with your WW colleagues either through WW World or the Wilhelmsen Intranet? Please send an email to ww.world@wilhelmsen.com
A vision to serve Per Kristian Knutsen has made a mark within the WW group as a shipping trainee, projectcoordinator for former group CEO Ingar Skaug and now in his new assignment as Head of Business Improvement for Wilhelmsen Ships Service. But there is more to the man – he is also a dedicated board member for the Norwegian Church Abroad. Text and photo: Stacey Trodal Norway: If you ask people who know Per
Kristian, they will all describe him as person who is easy to trust, and very professional. Always with a smile on his face, he modestly describes himself as “just a lucky guy”. The former second lieutenant in the Norwegian Navy, with a MBA from Norwegian School of Economics and Administration, is used to moving around at a high pace. There was therefore no big surprise when he also was asked to serve at the board for Norwegian Church Abroad (NCA), with more than 30 churches and 900 000 visits annually. “The Norwegian Church Abroad was originally established to secure the moral and religious education of Scandinavian seafarers.
In recent years we’ve had to broaden our focus. Today our doors are open for all Norwegian students, businesses, tourists, families and other Norwegians that live or travels abroad. But we still have our core activities targeted towards Norwegian sailors that want to “a home abroad,” says Per Kristian The Norwegian Church Abroad is famous for their open attitude towards all visitors, and not least the Norwegian waffles they serve all over the world. 15 chaplains are travelling to more than 80 countries for NCA, visiting Norwegians in all kinds of positions and trades. “Today, NCA has similarities with many other businesses and organisations. To continue to develop and grow we need funding and support. We have a great message to market and are much more than just a Church. NCA is recognised as a resource centre for all Norwegians abroad. Building even stronger alliances with the business society and showing our capabilities within emergency preparedness are one of the main focus areas for the future, ” says Per Kristian Knutsen.
Robin Rodricks, Neal de Rouche, Nikolai Norman and Hege Raade Solstad at Kilimanjaro.
Yuri Leshc
hynskiy at
Elbrus.
Sanjiv Rastogi at Kilimanjaro.
Halloween party on board the Tirranna WW’s Tirranna was turned into a real show boat when her crew decided to have a Halloween party!
Per Kristian Knutsen.
"our doors are open for all Norwegian students, businesses, tourists, families and other Norwegians that live or travels abroad." Per Kristian Knutsen, board member for the Norwegian Church Abroad
At sea: The crew showed up for the party, each one in a more fancy costume than the next. Festivities really took off to the tunes of the two men strong Tirranna band; motorman Malvar Jr. (Toto) Pineda Magbanua on electric guitar and 4th engineer Nicanor Palma Lumtong on bass guitar. There was a lot of great food, but the highlight of the night was no doubt the ‘best costume’ competition, won by electrician Mats Briskodden (photo, left), while Toto Pineda Magbanua (to the right) was voted ‘star of the night’.
Going for the top! What is it with Wilhelmsen employees? Why have they all of a sudden started climbing to mountain tops? Europe/Africa: No fewer than three WW
Lucky winner: Chan Chen When the Wilhelmsen Maritime Services celebrated the opening of World Expo in Shanghai, three lucky quiz-contestants were awarded a holiday for two to Norway. Norway/China: Shipbroker Chan Chen brought her mother for a ten-day tour that included four Nordic capitals and the spectacular scenery of western Norway. Well known for her easygoing nature and enthusiasm at work, Chen agreed to share her impressions of Wilh. Wilhelmsen’s home country. “The most memorable part of our trip was the night
34 WWWORLD 1 2010
we spent in the Norwegian mountains near Flåm. I had read that Norway was beautiful and seen the films in the Norwegian pavilion at Expo, but being there was very different. At Expo (where crowds have passed one million visitors in a single day), the tranquility we experienced was simply unimaginable. I had good moments sharing greetings with locals walking their dogs in the morning or leaving the hotel to go hiking. Coming from Shanghai, hardly meeting people in the street was an experience in itself. Also, seeing the Barents Sea was fun as I read about it in my work every day. Hopefully I will have the chance to go to northern Europe again and to spend more
time relaxing in the mountains.” Chan Chen is a shipbroker with Seamaster Chartering Limited in Shanghai. Her contact in WSS, account manager Jennifer Wu describes her as energetic, enthusiastic and easy to make friends with. Chan Chen is well traveled in Asia, but in a country where opportunities for international travel are limited, the World Exposition has been a major opportunity for the Chinese to discover the world. The number of visitors to the WW sponsored Norwegian pavilion has already reached three million, with a total of more than 70 million visitors at closing date 31st October.
Long way from home: Chan Chen among the Norwegian mountains and fjords. (Photo: Private)
expeditions have recently set their sights on a summit: two to the top of Africa’s highest mountain, Kilimanjaro, and one to the highest mountain in Europe, the Elbrus in the Caucasus Mountains. Sanjiv Rastogi, deputy general manager at Wilhelmsen Ship Management, Kuala Lumpur, had no prior mountain climbing experience when he set off for Kilimanjaro’s Uhuru Peak in a group of four. “I had spent the last two years helping my father in his gallant battle against lung cancer and after he left us, I wanted to do something extraordinary and dedicate this effort to my father’s memory,” says Sanjiv, who made it to the 5.895 metres summit after days of strenuous climbing. It seems like rock climbing has become
the new favourite outdoor activity among WW employees. Sanjiv’s ship management colleague Yuri Leshchynskiy from Barber Manning in Odessa, Ukraine, climbed the 5.642 meters high Elbrus Mountain after deciding that he needed to take up rock climbing again after too many years at his desk. The third expedition consisted of Wilhelmsen Ships Service colleagues Robin Rodricks, Neal de Rouche, Nikolai Norman and Hege Raade Solstad, who made it to the top of Kilimanjaro after six days of climbing. Neal summed up afterwards: “It can get emotional when on an adventure like climbing Kilimanjaro and I suppose we all felt it. The real joy came about a day later, when we realized what we had actually gone through and achieved together, with sheer determination and teamwork!” Which sounds like a good recipe for working in WW as well…
WWWORLD 1 2010 35
people&places
Chief Engineer with a PhD in Environmental Sciences Wilhelmsen Ship Management chief engineer Swamy Yeddanapudi was recently awarded a Doctor of Philosophy (PhD) degree in Environmental Sciences by Andhra University, India. The title of Mr. Yeddanapudi’s thesis ‘Energy efficiency indexing, an effective environmental management tool, to curb ships’ carbon emissions – a case study of pure car and truck carriers (PCTCs)’goes right to the heart of a major Wilh. Wilhelmsen focus area. ”Which is no coincidence. My interest in research was driven by WW’s environmental protection policies and corporate social responsibilities,” says the chief engineer. Already a bachelor in mechanical engineering and a post-graduate in business management and administration, Mr Yeddanapudi combined his studies with hands-on experience from PCTCs operations. He joined Wilhelmsen Ship Management (WSM) in 2003, and has spent most of his off-duty hours on board working on his thesis between 20062009. On 19th September this year he proudly received the formal notification of his research degree after years of studies. ”Shipping is the most environmental friendly mode of transport, and a recent IMO
36 WWWORLD 1 2010
Top American comedian, talk-show host and self-confessed ‘car nut’, Jay Leno was one of the first customers in the world to take delivery of the new Jaguar XJ luxury sports saloon. The car is due to take its place alongside other classic automobiles in Leno’s famous garage collection in California. USA: “Jaguar was the car that first got me interested in cars, almost 50 years ago,” explained Leno. “So when I was
Chief Engineer in Cambridge: Swamy Yeddanapudi photographed at the world famous University town of Cambridge, where his wife studied and now works. (Photo: private). energy efficient ships at the design stage, for future PCTCs.” Significant findings: The significant find-
ings were that a new car carrier delivered from the shipyard on or after 1st January 2012 (post Kyoto protocol era) would be 8 per cent more efficient than the average of all existing fleet today of same capacity. Similar results were found for the reduction of CO2 emissions for 2015 and 2018. Mr. Yeddanapudi is of the opinion that reduction measures aimed at limiting/controlling the maritime emissions from shipping should be an IMO responsibility, and that these measures should be applied globally to all ships regardless of their flags.
“By adopting best management practices, fuel can be saved around 15-30 per cent” (International Maritime Organisation) study indicated a significant potential for reducing greenhouse gas emissions (GHG) through technical and operational measures,” says Mr. Yeddanapudi. ”At this back drop, the main objective of the study was to evaluate energy efficiency in existing PCTCs and its improvement by using best available practices, and to make more
How Jay Leno got his new Jaguar XJ
Fuel reduction possible. Asked whether
he has identified a potential for fuel savings on existing vessels, the chief engineer provides
the following response: ”The research study was not designed for any technical invention/innovation but in identifying an environmental management tool to control the GHG emissions from international shipping in general and PCTCs in particular. However, fuel can be saved by adopting best management practices, like Eco speed, weather routing, optimum trim, hull and propeller maintenance (CASPER), energy management etc, which WW ships are already practicing.” ”How much fuel can be saved?” ”In general, by adopting best management practices, fuel can be saved around 15-30 per cent. Reductions to this level will require reduced operational speed.” ”What are your plans for the future?” ”With my technical, managerial and research exposure, I would like to work as an ‘EEDI verifier’ for new and existing ships. Until then, I would like to continue working on board and share my knowledge with next generation of engineers,” says the chief engineer.
fortunate enough to be asked to introduce the new XJ in London, well, I decided to order one.” In true showbiz style, Leno’s Jaguar has already had a starring role in its own movie. Jaguar decided to film the story of this particular XJ – every step of the way from the first moment of building it in Castle Bromwich, England, to delivery in Hollywood. Wallenius Wilhelmsen Logistics (WWL) played a significant part in the story, helping to ship the car from Southampton to Baltimore on MV Tirranna. In the movie WWL’s Southampton terminal manager, Pete Lavelle, is seen explaining how Jaguars are carefully driven off the train from Castle Bromwich before preparing them for shipment and loading onto the vessel. With Jay Leno’s Jaguar safely on board, the Tirranna is seen slipping her moorings before heading west for the ten-day sea voyage to America and WWL’s Vehicle Processing Centre in Baltimore. But, of course, the long journey does not end there: It is a further five days and 25,000 miles of trucking before the Jaguar arrives at its final destination in Los Angeles to join other Jaguars in the collection.
Proud owner: TV superstar Jay Leno with his brand new Jaguar XJ upon its safe arrival in California – delivered by Wallenius Wilhelmsen Logistics. (Photo: Venture magazine)
Walking the talk
Walked 100 kms: The trial is over! The long walk was a serious test for the WWL team. From the left: Matthew Jackson (Commercial), Tommy Leung (Trade&Ops), Nicole McCorquodale (HR) and Jason Fichtl (IT). (Photo: WWL)
Sydney, Australia: How can we drive a more collaborative culture and build a more efficient and motivated organization, when most of our work is departmentally structured? Perhaps we should start by taking a long walk together? Wallenius Wilhelmsen Logistics’ chief-of-staff Patricia Biszewski’s challenge is a classic in most organizations. The way to solve it is of course to reduce the barriers between departments, but how do you actually achieve this? One idea for bringing people together came from a colleague in WWL’s HR department: go for a long distance walk together!
”It was a really tough challenge. Four walkers from four departments; IT, HR, Trade/ Operations and Commercial, were challenged to walk one hundred kilometers non-stop in rugged terrain, and they all had to finish together. The participants each walked about 500 kilometers as part of their training preparations over a six-month period. As the plans for the walk created quite a stir, their colleagues soon rallied behind them with fund-raising drives. “We decided to walk for a good purpose, and raised AUD 8.457 in aid of Oxfam, with much of the funds going to Pakistani flood victims relief fund,” says Biszewski. ”Each team was to experience the organization from a different angle and contribute to a business segment other than their own,” says Biszewski.
WWWORLD 1 2010 37
Special report: australia
Port Hedland ➜➜Approximately 107 million tonnes of iron ore were exported to China from Port
Hedland in 2009.
➜➜Total export: approximately
186 million tons.
➜➜Iron ore 96 %, salt 2%, manganese 1% and others
1%
➜➜When the Rapid Growth expansion
plan is fulfilled in five years time there will be 24 berths, including 17 for capesize vessels.
WSS ‘down under’ ➜➜Total staff: 135 ➜➜25 operational offices. ➜➜In Australia: Adelaide, Bell Bay, Brisbane,
Heavyweight
agents
They handle 1.6 million tonnes of cargo per year – each. The Wilhelmsen Ships Service agents in Port Hedland are hard to match when muscle is measured by tonnes. Text and photos: Håvard Solerød
Broome, Cairns, Dampier, Darwin, Esperance, Fremantle, Geelong, Gladstone, Mackay, Melbourne, Newcastle, Port Hedland, Port Kembla, Sydney, Townsville, Weipa and Whyalla. ➜➜In New Zealand: Auckland, Christchurch, Tauranga, Wellington and Whangarei.
Big guys: Graeme Skevington (from the left), Mick Scott, Bill Retalik, Denys Hughes, Neil Cedelland, Paul Bailey and Rohan Fox.
38 WWWORLD 1 2010
WWWORLD 1 2010 39
Special report: australia
ORT HEDLAND, AUSTRALIA: The flight from Perth to Port Hedland leaving at 6.15 a.m. was overbooked this morning. The departure hall was cramped with men in working gear, heading for the mines in the northwest and hard work, decent paychecks and prosperity. The financial turbulence elsewhere in the world seems distant. Surrounded by orange overalls we walked up the stairs to the Qantas flight with Denys Hughes (61) from Wilhelmsen Ships Service (WSS). ”Port Hedland aims to be the world’s leading bulk commodities port. The goal will be reached within the next few years. Proximity to mines and deep water is the key. Chinese demand for iron ore drives growth and developments,” says Hughes. ”WSS is very much part of the growth. We have a major market share of ship agency services in Port Hedland and Dampier. Our agents are really on the ball.” Denys Hughes first travelled to Port Hedland for work back in 1973.”At that time there was neither radio nor television. I could not imagine the phenomenal growth that was going to happen,” says Hughes.
P
If only we had a ro/ro berth…
Chinese demand: The recent expansion plan is called Rapid Growth. In 2011 the number of berths at Port Hedland will be doubled.
If we had a suitable berth for our ro/ro vessels in northwestern Australia, we could save our customer a substantial amount of money,” says regional director Greg Martin.
Text and photo: Håvard Solerød
WSS staff: Paul Baily and Rohan Fox. Black and white: Mountains of iron ore and salt hills are familiar sights around Port Hedland.
Fantastic volumes. ”Last year one third of
the world’s capesize vessels were in Australia at the same time. Congestion in some ports can cause ships to wait for up to 15 days. With development over the next few years, the number of berths in Port Hedland will grow from 8 to 16. It will be a big benefit to both our customers and to us. The ships can turn around quicker and come back sooner,” says Hughes. On the way to the office after landing we pass white ’mountains’ of salt and trucks with four wagons behind them. Black ’mountains’ of iron ore and manganese are visible at terminals. Once there was a gold rush about 140 kilometers from Port Hedland. Between 1851 and 1861 Australia produced one third of the world’s gold. The gold of today comes in a variety of colors. A several kilometers long iron ore train passes alongside the road. ”You can get stuck for 15 minutes at the railroad crossings. That’s how long it takes for a three kilometers long train to pass,” says Hughes. Port Hedland is an island. The road
across to it has been embraced by sand over the years, so that these days the island appears 40 WWWORLD 1 2010
Australia: ”Wallenius Wilhelmsen Logistics operates a reliable and frequent service to Australia. The fact that we have not lost one major customer during the financial crisis is proof of this. We also offer inland logistics, but we need to be able to access a port in the northern part of Western Australia for our ro/ro vessels,” says Greg Martin, WWL regional director Oceania. “This part of the country is experiencing almost a Bonanza for natural resources these days. Business opportunities are flourishing, but the ports in the area are all built for bulk cargo. Large project cargos for ro/ro vessels have to be unloaded in Fremantle and Perth before their final transportation by road, a long and expensive journey. Or the cargo travels by barge from Fremantle or Kwinana. ”The costs of transporting a 200 tonne mobile crane by road from Fremantle to Port Hedland is more than double the costs to ship it across the globe from Hamburg to Australia,” says Martin, who was Sydney’s port director until three years ago. ”At present only smaller general cargo vessels are able to make calls in some of the northern ports, so most of the large project equipment has to do the final stretch by road. We are keeping our eyes open for opportunities that could make it possible for WWL vessels to call at these northern bulk ports,” says Martin. In 2009 WWL increased their ownership in Armacup to 50%, opening up for Sydney,
as a part of the mainland. About 10 000 people live here. A dry heat surrounds everything. During the summer temperatures can stay above 40oC for months at a time. ”The cyclone season starts in November and lasts until April. We have experienced wind speeds of up to 130 knots. Conditions can be harsh and cause delays for the ships,” says Hughes. ”The pressure on a relatively small area has skyrocketed prices on real estate. A modest house costs around one million dollars. There are plenty of challenges.” Hughes grew up in Fremantle and has worked in shipping all his life, the last three years for WSS with a sharp focus on business development. Now he is in Port Hedland to discuss future strategy and growth with his six local colleagues. One is a former policeman, another used to do accounting. All have backgrounds from outside shipping and come from different parts of Australia. They have brought useful skills to the office and learned new ones. ”I used to work at a web service desk as a computer technician. Three years ago I visited
my brother in Port Hedland. I discovered the opportunities here and called to say that I would quit my job in Fremantle and move to Port Hedland right away,” says agent Paul Bailey (25).
up in this area. WSS have tenders out that include inland logistics. That’s a ‘first’ in this area and gives us a competitive edge,” says Denys Hughes.
A head start. ”Here young people can get a
activity represents new opportunities also for the WSS/Unitor maritime products and service. Some cruise vessels have started to call ports in Australia regularly,” says operations manager Neil Cedelland. Denys Hughes explains how WSS is trying out new approaches: ”Recently we started to work directly with the Chinese steel mills. This has proven to be fruitful to both parties. Face to face meetings and presentations to the large number of potential customers based in Singapore are also crucial.” The Port Hedland WSS agents in Port Hedland are proud to be heavyweights. Each of them handles 1.6 million tonnes of cargo each per year, with the office serving an average of 50 ships per month. ”We are heavyweights in every meaning of the word,” says Hughes and brings out a laugh among his colleagues.
head start. My former job was repetitive, here I do something new every day,” says Paul Bailey. The night prior to our arrival two ships sailed and three arrived during the tide. All were serviced by WSS. There seems to be development going on everywhere, with lots of new berths under construction. If one word could describe Port Hedland, it must be ‘busy’. Every year brings new records; last year the port handled five ships with a total of 841 062 tons of cargo during just one tide. WSS’ dominant market share relates to our professionalism and is by far the largest operator locally. ”Our global network is aware of what is happening here. Colleagues elsewhere send us information on future shipments to arrive. Large scale LNG projects are also coming
New opportunities. “Increased oil and gas
Wants to do more: ”Wallenius Wilhelmsen Logistics in Australia are looking for new ways to add more value to their services,” says Greg Martin, WWL regional director Oceania. the opportunity to improve trade links into Australia, calling at ports in Japan, Korea, China, Australia and New Zealand. Established in 1984, Armacup is based in New Zealand. The company is a regional carrier of passenger cars and High and Heavy cargo. ”It has been an Achilles heel that we have had mostly import and very little export cargo in Australia. Armacup provides an opportunity for WWL to extend its penetration of the export markets from Australia & New Zealand. The trade from Asia to Oceania is developing steadily and it will be interesting to follow this in the coming years,” says Martin.
"sitatQuas exereperia sincid que exerum ipsam, niendignatem que voloratur am licia cus, sero blabo. Hiciur molorianda dis et es reiur alitas aci ommodist, non commolu" WWWORLD 1 2010 41
Special report: australia
Ta vekk logo
Joining forces under one roof Two Wallenius Wilhelmsen Logistics leaders: Mark Guscott and Craig Heron, used to work from two different locations. Now they are under the same roof at the Laverton Processing Centre in Melbourne.
Wilhelmsen Ships Service has appointmented Nigel Goode as new general manager at the company’s Fremantle, Western Australia office. Nigel Goode becomes part of Wilhelmsen Ships Service’s Oceania team and will be responsible for managing the day-to-day aspects of the company’s services, which include the provision of Unitor marine safety products, technical services, ships agency services and maritime logistics. He will also be developing and growing the organization’s businesses in the region, which has a strong shipping industry based on oil and gas, bulk cargo and mineral extraction. The new general manager has 25 years experience working with medium and large multi-national corporations. He has a profound knowledge of logistics and supply chain services through his work in various roles in Australia and Asia over 25 years. Prior to joining Wilhelmsen Ships Service, he worked for Mayne Nickless Logistics, TNTLogistics and most recently as a partner for a niche logistics and supply chain consulting business based in Asia.
Text and photo: Håvard Solerød
ustralia: ”Mark has been out to
A
see the world, while I am the typical ’home body’. We balance each other,” says Craig Heron (35), vice president technical services Oceania. Mark Guscott (36) is vice president commercial & supply chain. Both started working for WWL more than 10 years ago in Melbourne and each has followed the others steps. Guscott has, during the past five years, been stationed in New Jersey, USA and Shanghai, China, undertaking various responsibilities within the logistics business, while Heron steadily has moved up the ladder in operations in Melbourne. WW World met the two ’young guns’ at the Laverton High & Heavy Processing Centre just a few weeks after the corporate employees in Melbourne had moved 20 kilometres to join the technical staff at Laverton. The Laverton facilities are only two years old. The showroom was recently rearranged to accommodate the staff of 36 from the city office. In the middle of the two office environments there is a ’boat’ café representing a collaborative space - be it for sharing ideas over a cup of coffee or lunch. The offices are next to a huge workshop where skilled technicians do the final assembly of farming equipment and other high & heavy machines. Both leaders have a strong belief that WWL has a fantastic organizational culture that supports the development of capability and competence. "The success of our teams in Oceania can be credited to the strong and 42 WWWORLD 1 2010
talented managers that we have on board," says Mark. As we continue to build internal understanding (of a practical nature) surrounding our technical service assets, this success will continue to shine," comments Craig. Two aspects: ”If we consider our journey in
know where we have capacity, feel it and have an understanding of the value we are creating for our customers." Both leaders share an obvious passion for working within Wallenius Wilhelmsen Logistics and Craig aptly summarizes that each day he "runs the business as if he owned part of it. Seeing it grow, develop and playing a role in shaping the business is satisfying."
Melbourne, it’s at an early stage; there are still two ‘aspects’ of company activity that frame our culture. One is more sea oriented while the other is entirely land based. But we are Mobile units: The mix of farming and already receiving positive comments from project cargo is seasonal. In this way it is possible to maximize the use of the facilities and customers who now travel to meet us out here. They get to see our new facilities and learn thus increase business. Each year the Laverton more of how we handle their cargo. There facility assembles 5 500-6 000 units for some is no better advertisement than that. Our 14 customers. commercial team has gained a better under”We know that a lot of the large project cargo will arrive in Australia in the coming standing of the workshop’s capabilities,” says Heron. ”Customers trust us with the fi- "Collaboration across the nal assembly of their teams has increased and from a cargo. The closer you get to the end user leadership perspective, this is the more intensive particularly pleasing." it gets. We get a lot of feedback from Mark Guscott, vice president commercial & customers during supply chain. the process. Often this contact leads to new years, in need of final assembly. Many units are business and innovation.” too large to be transported from Laverton. They "Collaboration across the teams has inhave to be assembled on the project site. We are creased and from a leadership perspective, looking into creating mobile teams to do the this is particularly pleasing," adds Mark. finishing assembly at the final destination,” says "The commercial team having a much closer Heron. The joining of forces came at the right affinity to our technical services colleagues time. Future challenges will demand advanced and sites stimulates sales activity - the teams collaboration to meet the customers’ needs.”
New Western Australia Manager for WSS
Joining forces: Mark Guscott (to the left) and Craig Heron at Laverton High & Heavy Processing Centre in Melbourne. WWWORLD 1 2010 43
Ww feature
Welcome None of the three WW representatives present at the opening of the new SOS Children’s Village in Mariveles, Philippines will ever forget the warm welcome they received. Text: Einar Chr. Erlingsen Photos: Bjørg Ekornrud and xxx
44 WWWORLD 1 2010
WWWORLD 1 2010 45
Ww feature ➜➜SOS Children’s Villages is an interna-
tional social development organisation focused on family-based, long-term care of children who can not live with their biological families. ➜➜SOS runs more than 470 villages in 132 countries ➜➜The organization was founded in 1949 by Austrian Herman Gmeiner (1919-1986) ➜➜The first SOS Children’s Village in the Philippines opened in 1967 ➜➜There are eight SOS Villages in the Philippines today ➜➜The Norwegian sponsors of the new village in Mariveles are: Wilh. Wilhelmsen, Høegh Autoliners, Grieg Group, Odfjell Drilling and Prosafe. ataan, Philippines: The bus
B
heading for the new SOS Children’s Village winds its way through the lush green landscape. It passes through jungles, villages and small towns, and between small rice fields tended with loving care. Bataan is a coastal area some two hours by car from Manila. Unemployment is high; many of the locals try to support their large families by fishing. Competition from the industrial fisheries is tough and the fishermens’ income often too low to feed their many children. Among the passengers on the bus were representatives of five Norwegian shipping companies. They are joint sponsors of the new SOS Children’s Village in Mariveles. Among the sponsors is Wilh. Wilhelmsen, represented at the opening by Bjørg Ekornrud, Wilh. Wilhelmsen Holding, Jorolv Sættem, Wilhelmsen Smith Bell Manning, Philippines, and Tony Josue, Wilhelmsen Ships Service, also Philippines. “It was my first visit to the Philippines, and the sight of the poverty around us deeply touched my heart. It made me realise how extremely privileged we are, those of us who live in a rich part of the world,” says Bjørg Ekornrud. There was more to come. As the guests
and their SOS Children’s Villages’ hosts from Norway and the Philippines, plus representatives of the local authorities and church descended from the bus at their destination they were cheered by some 120 children between the ages of three and fifteen, and their SOS mothers. The new village consists of six twostory houses, with one family of 10-11 children and one mother on each floor. “I will never forget the children dressed up in their best clothes who greeted us with ‘welcome home!’ and took us by the hand, touching their brows with our hands in respectful 46 WWWORLD 1 2010
greeting,” says Bjørg Ekornrud. “They almost fell over each others in their eagerness to touch us or sit in our laps.” Strong stories. As a main sponsor for SOS
Children’s Villages in Norway WW is also the sponsor for three of the Bataan village’s houses. Josephine Babano is the resident mother of House of Sarah, while Marygrace Gallo lives with her children in House of Hannah. House of Esther is still waiting to be filled with residents. After the opening ceremony with the traditional ribbon cutting, children singing, dancing and speeches each resident mother received small gifts from the sponsors; the ‘WW mothers’ each got a company silver bracelet and WW table flags for their homes. These were immediately given a place of honour in the main living room of each home, where the guests were invited to learn more about the residents. Surrounded by happy children Bjørg Ekornrud enquired about their backgrounds before coming to the SOS Children’s Village. The answers almost brought tears to her eyes; some children had been abandoned by parents who could not support them, others had been found on a garbage dump. They had all experienced some kind of trauma before being taken into the care of their new mothers. “Some of their stories were almost too strong to bear,” says Bjørg. “And there Bjørg Ekornrud are so many others like them who are still not receiving any help. Compared to them, the children living in the SOS village are very fortunate; they now have a safe home, food and clothes and a caring mother. They also receive an education and a chance in life. So many others do not. Seeing the happy children in the village has made me extra proud to be working for WW.” She was deeply impressed by the village mothers: “They do a fantastic job. They are in a way sacrificing their own lives for the children, abstaining from having a family of their own.” Bjørg still remembers the reply she got from mother Josephine Babano when she asked about her personal motivation: “It was a call from God. It’s often hard, but it is also enjoyable. And I don’t regret it!”
“When I finished high school, I decided to enter the convent, but I failed. So many fears and doubts entered my mind that time. But God took me by the hand and said; ‘My child, come and work in my vineyard.’ My relationship to my one and only boyfriend failed as he decided to enter priesthood. I lost my work after 17 long years when my boss decided to close down the company. My mother died two years ago - and during that time I complained to God. ‘Lord, why did you take my work, my man, and now, even my mother?’ And God said, ‘My child, your mother is at a place with my mother and my father. Go, take care and feed my lambs.’ Dear visitors, here I am standing in front of you, because I know that you too are the shepherd of this flock, working in His vineyard. You are our hope and inspiration. Presently, I have ten children; 8 girls and 2 boys. Our home is not a paradise because of wounded children, a wounded mother, and a wounded world around us, but you are there, helping us to heal that wound and repair what is broken from us. A house becomes a home because I was there, my children are here sharing joys and sorrows, laughter and tears, trials and challenges in the past. God drove me to SOS because he wants me
Lots of fun: The formal opening of the children’s village was celebrated with traditional song and dance by the children themselves, as well as by youth from the local High Schools.
“I will never forget the children dressed up in their best clothes who greeted us with ‘welcome home!”
A mother’s tale. Celebrations continued in
the village’s community centre in the evening. It was a most joyful event, but also one for reflection, like when Mommy Helen from the House of Eve told the audience her own story:
to see, feel, and touch the lives of the broken hearted. My children are the best gifts to me. A gift not wrapped with a beautiful ribbon, but wrapped with wounds and scars. Allow me to share my experience with my youngest daughter who is now 2 years old. The first time I saw here she was very thin, with third degree malnourishment. She had fever, diarrhoea and asthma. I spent sleepless nights watching over her. I even told myself that she can’t survive. But today, she is smart - a healthy baby girl helping relieve my stress and problems. She often sings for me and I feel okay. She is also sweet and caring. She is very caring towards people in need, particularly to her siblings who need her to pat their backs and wipe their tears when they cry. She has taught me so much love and given me the most joy. I would like to thank you for making a big difference in our lives. Like our Lord said, “What you have done to the least of these mothers and sisters; you have done to me.”
Happy mothers: The news that each of the village mothers was to receive a brand new washing machine from the sponsors was greeted with cheers. They would otherwise have to hand wash the laundry from ten children, including their school uniforms.
WW representatives: (from the left) Tony Josue, Wilhelmsen Ships Service, Philippines, Bjørg Ekornrud, WW Holding, Norway, and Jorolv Sættem, Wilhelmsen Ship Management, Philippines.tional song and dance by the children themselves, as well as by youth from the local High Schools.
You can help!
WW and SOS
The Norwegian sponsors of the new SOS Children’s Village will continue to support the new village, but there is still a great need for personal sponsors for each of the children living there. By agreeing to pay on small amount of money each month, you can help the children towards a better future. You can do so by contacting one of the addresses below:
Wilh. Wilhelmsen has a long tradition for
Brand manager corporate communications WW Holding Bjørg Ekornrud: bjoerg.ekornrud@wilhelmsen.com SOS Children’s Villages Philippines: www.sosphilippines.org/index.html SOS Children’s Villages Norway: www.sos-barnebyer.no/forside/pages/default.aspx Your help will be greatly appreciated.
supporting charitable work. Stable and long-term care is central in the work of SOS. This is a good match with WW’s corporate culture, which is based on values and sustainability. Wilhelmsen Ship Management has had a manning office in Manila since 1978, and today around 4.400 Filipino seafarers are sailing for us. This is the main reason for us to become a partner with SOS in the Philippines: one way for us to give something in return to a country that is so important for our company. WWWORLD 1 2010 47
Ww PHILIPPINES ➜➜There are approximately 200,000 Philippine
mariners in international shipping, of whom 120,000 are on board at any given time. ➜➜3,500 Filippinos are sailing on vessels under Wilhelmsen Ship Management. ➜➜No other nation supplies more crew members to the WSM managed fleet than the Philippines. India comes 2nd, with Poland in 3rd place. ➜➜Wilh. Wilhelmsen started to recruit Filippino mariners in 1984.
‘Silver jubilee’ for a happy relationship Filippino seafarers are recognised as being among the best in the world and they are numerous. For twenty five years, the Philippines has been the main recruiting ground for Wilhelmsen Ship Management. Text: Bjørg Ekornrud/Einar Chr. Erlingsen Photos: P. J. Villegas
WSM team: The staff at Wilhelmsen Ship Management in Manila. Standing, from the left: Raja Cansicio, P&I claims officer; Rowena Sanchez, senior crewing officer; Sheryl Villamin, senior crewing officer; Irene Magtibay, HR/admin. officer; Maricel Edralin, QMR; Noemi Dionisio, CSS/family centre administrator; Cathelyn Palacio, chief accountant; Gerardo Pena, senior crewing officer; Cristy Guevarra, accounting supervisor; and Raymundo Geloca, accountant – crew payroll. Seated: Jorolv Sættem, general manager/ employer’s representative.
anila, Philippines: Ever since
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the first Filippino mariners were recruited by Wilhelmsen Ship Management (WSM) in the mid1980s, the relationship between the two parties has been a most successful one. The thousands of seafarers from the island nation have long since proven their skills and competence, they have in general a positive attitude, good knowledge of the English language, and their services come at a relatively reasonable price. On the other hand, the ties to Western shipping have lifted tens of thousands of Filippino families out of poverty, giving them a standard of living that is way over the national average. Three channels for recruitment. When
searching for new recruits, there are three main channels open to WSM, according to general manager/employer’s representative Jorolv Sættem: “First there is the World Wide Web, with a Filippino web site that includes information about WSM and where seafarers can upload their CVs and apply for a job online. We 48 WWWORLD 1 2010
also have a permanently manned stand at a marketplace for mariners, and we have people who visit seafarers from the provinces living in Manila boarding houses,” says Mr. Sættem. A seafarer seeking WSM employment has to meet a set of selection criteria and qualification tests according to the different positions on board, then face a personal interview. Only when approved will he be offered a position with WSM. “There is still a world shortage of senior officers and electricians. On the other hand, finding suitable Filippino junior officers is reasonably manageable,” says Mr. Sættem. “The improved quality of the educational system ensures that there is now a good pool for recruitment of young people.” WW cadets. For WW’s own ships, cadets are
recruited through the Norwegian Maritime Training Centre in Manila. After two years of education, the cadets work on board a WW ship for one year, then go back for their final year at school. “After they have passed their exams, they will be offered a position on board. We have established a five-year cadet programme, where we support the students during their first two years of education. In return, they agree to serve for a period of three years on board one of our ships after their exams,” says Mr. Sættem. “Traditionally, Filippino seafarers have worked as ratings. This is changing rapidly. Increasing numbers are becoming higher officers and masters, including on specialised vessels. We offer career planning and selfdevelopment, and we treat our seafarers with the respect and decency that they deserve. It’s almost like a recipe for a happy marriage,” says Mr. Sættem.
"sitatQuas exereperia sincid que exerum ipsam, niendignatem que voloratur am licia cus, sero blabo. Hiciur molorianda dis et es reiur alitas aci, non commolu" WWWORLD 1 2010 49
Wss PHILIPPINES ➜➜There are two WSS companies in the Philippines: ➜➜Joint-venture Wilhelmsen-Smith Bell Shipping,
for ship agency services
➜➜Wilhelmsen Ships Service, for marine products
and technical services
Three mariners on WW Motorman Julius M. Jardio has sailed
Ww HR/OD
Hand in hand with the maritime academies Wilhelmsen Ships Service Philippines are unique in their cooperation with the local maritime academies, making the naval cadets familiar with the equipment they will be using on board. Text: Bjørg Ekornrud Photos: P. J. Villegas
on board a number of WW vessels since he first signed on in 1991. At present he is on board MV Topeka, after signing on in Japan in September 2010. Mr. Jardio is married with three children. His son is following in his father’s footsteps to become a seafarer. He recently graduated from West Negros College and is determined one day to sail on a WW vessel. “It’s a good company to work for,” says Mr. Jardio. “It’s stable, with a lot of emphasis on safety and crew welfare.”
Second engineer Joefran Q. Gelara
has just applied for a position with WSM for the first time, after 11 years for other companies. He wanted to become a mechanical engineer, but as his family couldn’t afford the education, he decided to opt for a maritime career instead. “With a wife and three children it’s hard to be away for six months at the time, but communicating with them via e-mail and phone helps a lot,” he says. A better future and good, stable benefits are his main reasons for seeking a career with WSM.
50 WWWORLD 1 2010
The new people principles and leadership expectations were developed this year and are an important part of our governing elements. Setting and managing expectations towards our managers and employees as well as developing our people capabilities will be essential to move towards the vision of Shaping the Maritime Industry. Text: Stacey Trodal
orway: The new people principles
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Cook Jerry Joseph Ociones. Still a
bachelor, Mr. Ociones decided to seek a career at sea after working for the last two years at a five star hotel in Davao City. “The work is better paid on board, and I want to help my family; mom, dad and four siblings. This is my first visit to WSM, but the company is well known at Mindanao and I was recommended by relatives, so I hope that I will be given a chance to prove my worth.”
New people principles and leadership expectations …
Great team: (from the left, standing): Liaison officer/driver Candido “Dong” Baja, sales assistant Marie Galvez, office administrator Yvette Raous and FRS supervisor/port sales engineer Jimmy Vargas. Seated: general manager/owner’s representative Tony Josue. Ramon De La Merced and Marilou Barroso were not present when our photo was taken. anila, Philippines: The origins
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of WSS Philippines goes back to 1993, when a Unitor welding school was established at the Norwegian training centre in Manila. Four years later, the first Unitor representative office became a reality, and in 2005 Unitor became integrated into Wilhelmsen Maritime Services. The close cooperation with the Norwegian training centre meant that the students got access to state-of-the-art training equipment for welding, fire fighting, safety, gases and chemicals. Since then, similar agreements have been reached with a number of other maritime academies as well.
“To the students, this means that they are familiar with the equipment and its surroundings even before they go to sea,” says WSS general manager/owner’s representative Tony Josue. His company has long-term contracts and fleet agreements with several Japanese ship managers, as well as some Norwegian and local companies. There are also deliveries to yards for newbuildings and repairs at Subic Bay, Batangas and Cebu. “The market for our products is good and increasing rapidly. I see a bright future for Wilhelmsen business here in the Philippines,” says Tony Josue.
and leadership expectations were developed this year and are an important part of our governing elements. Setting and managing expectations towards our managers and employees as well as developing our people capabilities will be essential to move towards the vision of Shaping the Maritime Industry. “We are moving towards a performance based culture where our employees are faced with growing challenges and constant change. A strong commitment to our employees as well as our corporate expectations of them is definitely going to become even more important moving forward,” says Kirsten Haune, group vice president HR & OD, WW Holding. Haune hopes that the new people principles will set and communicate a clearer ambition level that every employee, no matter company or their position within the WW group, can actively apply in their daily work. Focus on people. “The new People princi-
ples statement expands upon the WW group’s basic philosophy, that empowered employees in an innovative, learning organisation are the group’s main competitive advantage,” says Haune. “It’s important that we provide an innovative and stimulating working environment where our employees are given the opportunity and freedom to share these common principles. Only by doing so can secure growth and success, both personally and for the company.” Good leaders. “Competent and good leaders
are vital to the success of our. The new leader-
Kirsten Haune: “Competent and good leaders are vital to our success.” (Photo: Kaia Means) ship expectations and supporting leadership statements were developed to set a clear ambition level as well as clarifying the requirements the group has for its managers,” says Haune. “If we are to fulfil our vision of being the “shaper”, this will demand capable leaders who have the ability to create an innovative organisation culture. People who can set direction and continuously look for new solutions to the
ever-changing needs and expectations around us. It is important that emphasis is placed on each individual. We want each employee, both prospective and current, to be able to live our values and inspire colleagues,” adds Haune. The new governing elements and principles can be found on the WW group’s Intranet under GIMS.
WWWORLD 1 2010 51
Ww HR/OD People principles: We are committed to empower and
develop our employees to secure growth and future successes, both personally and for the company. We acknowledge that the quality of our services to a great extent depends on the performance of the individual employee.
Leadership expectations: To lead is to inspire, to influence and
to initiate productive change within people and processes as we work towards our vision. Being a leader means determination to create a path, rather than following others. It means setting a direction and continuously looking for new solutions to the ever-changing needs and expectations around us. This way we contribute to a stronger image, reputation and credibility of our industry while we continue to provide value to our stakeholders.
Engaging the participants: The new Maritime Industry programme will be more engaging and interactive. Pictured; WW Academy Learning consultant, Cristina Rynning, takes participants through some classroom exercises in Dubai.
Stearing the ship: The WW Academy team are ready for new opportunities in 2011 Pictured; (Left to right) Hilja Tuori, Johanna Sunden, Penny Bjørkmann (Cristina Rynning not present)
A survival kit for new managers Welcome Aboard is WW Academy’s latest training programme for new managers. Here participants will get a basic introduction to people management skills as well as the WW company culture and values which will support them on their path to success. Text and photo: Stacey Trodal orway: “The training is about finding each participant’s own
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style while at the same time familiarising them with the company’s expectations. We hope the new training programme will build upon the participants’ strengths and focus on what they are already doing well as managers. We also want them to reflect on the WW values and equip them to come up with concrete initiatives 52 WWWORLD 1 2010
that will help them achieve lasting results for both themselves and their teams,” says Hilja Tuori, WW Academy learning consultant. The training which will be available early 2011 will be run and facilitated by the BA HR network at the local offices with support from WW Academy. “Our vision to be the shaper will demand even more competent leaders with the ability to create value within the group. We hope that this programme answers this need by being the first step in a long-term strategy to build competent and capable leaders who are able to innovate,” says Tuori. Learning on demand. The training will involve a new learning ap-
proach called “Learning on demand”. “We understand that it can be challenging for our managers to fit course work into their already busy schedules. Unlike other programmes in the past, Welcome Aboard will be quite flexible with participants able to access all course material through WW Academy’s online classroom. The training will also include a dilemma workshop, film, nano eLearnings (which are very short and effective eLearnings) reflection book, web forum and more,” says Tuori.
"The new leadership expectations and supporting leadership statements were developed to set a clear ambition level as well as clarifying the requirements the group has for its managers.” Kirsten Haune, group vice president HR & OD, WW Holding
A new maritime focus WW Academy has launched a new Maritime Industry programme. In 2011 150 employees will attend the programme, which will be running in US, Europe, Asia, AMB as well as in Oslo. The participants will have the opportunity to meet executives from the different business areas and learn more about the Maritime industry and the WW group’s role in this. “After the programme participants will give an overview of the maritime industry as well as an understanding of its core business drivers. The Maritime Industry Programme will replace the Shipping Industry Programme and mirror the change WW group has made from a ship owning and logistics company to being a player within the most parts of the maritime industry,” says Cristina Rynning who has been responsible for developing the new programme. This new training programme is designed to be highly interactive. A highlight of the programme will involve participants in a, business simulation game – kind of a monopoly on sea.
“Using a game as a learning method will enable participants to see the greater macroindustry picture and gain an understanding of the key players involved in the market value chain,” says Rynning. eLearning, lectures, role play, group work, and a vessel visit will be apart of the new programme. “This is a training programme that all WW employees can benefit from. The popularity of the past shipping programme was a testament to this. Because of it we have increased the number of training courses to five in 2011. So watch out! the programme will soon be running in a location close to yours,” says Rynning. WWWORLD 1 2010 53
CUSTOMER FOCUS
“It comes down to trust and level of comfort” WW World recently visited Crystal Cruises’ technical and commercial management at their head office in Los Angeles to learn about how they see their suppliers in the context of their business objectives. Text and photo: Don Pyle Florida, USA: Crystal Cruises is known for
its commitment to delivering special cruise experiences to its guests. Everywhere one looks, words like “the Crystal touch”, excellence, value and luxury appear. How do these qualities cascade down to how you choose and work with suppliers? Bob Koven: “These words describe the basic
fabric of Crystal Cruises. We treat everyone as a customer, including our suppliers. We seek suppliers with great integrity, the ones who are willing to work hard and strive for excellence. We were the first cruise operator to take on Unitor chemicals, I believe. Marine chemicals can be very hard to measure against each other in terms of yield and performance, but we took a calculated risk and it has paid off. Wilhelmsen Ships Service’s dedication and personal service has led to us widening the relationship. In our experience, not everything can be done electronically. They had a person who went onboard and gave us a report.” WW World: “In addition to customer satisfac-
things down and increases our costs.” what is happening on a broad front, from e.g. emission to the cost issues that Bob mentioned. We work with many suppliers, and all are evaluated on technology, cost and payback. Partnership is a key word because we rely on our suppliers. Crystal Cruises wins a lot of industry awards and a lot of the credit is due to our suppliers. They are there to help us when we need it. From a technical purchasing perspective we think WSS’ account manager concept is a real success. It means that you take responsibility and make sure that problems get taken care of. Of all our suppliers, only two can do this all the time. Wilhelmsen Ships Service is one of them.”
and no matter the time of day, if there's something urgent, we can get a hold of someone, especially Paal, to get what we need. I've been working for Crystal for fifteen years, and we've had maybe three or four account representatives, and I have to say, normally you're a little nervous when someone new takes over your account because of the sometimes slow learning curve, but with Wilhelmsen, it's amazing. There's never a drop in the level of service. We don't know what kind of training you do behind the scenes to prepare new representatives, and it could also be the high caliber of people you hire, but the transition's always seamless. It's as if you have your own [Wilhelmsen] version of the Crystal basics, and we feel very comfortable knowing that you're all there on the other side to take of us.”
WW World: “How would you describe the
Bob Koven: “My impression is that training
Knut Aune: “We take care to stay on top of
nature of your relationship with WSS?”
Sandra Yee: “From a purchasing side, our
experience with Wilhelmsen has been very positive. We know that wherever the ships are
tion, there are a number of challenges facing the industry today, for example compliance, the environment, operational efficiency and of course costs. What areas are you focused on these days, and how do they relate to your suppliers?”
54 WWWORLD 1 2010
Knut Aune: “Our relationship to WSS is much
like the relationship we have with our guests. Ultimately it all comes down to trust and level of comfort.”
WW World: “How does 2011 look from your
perspective?”
Bob Koven: “The environment is very com-
petitive, and it is important to do things right. Cost is a driving factor. We want to work with suppliers who can help us to keep our costs low. In the area of delivery logistics, for example, there are very stringent regulations in the US about access to ships in port, i.e. the TWIC program. Some suppliers do not want to deliver all the way to the ship. This slows
is a very central subject in WSS. When they knock at our door and want to discuss a new concept with us, we open it and listen. We know they have integrity. We trust them.”
Bob Koven: “2010 has been a tough year for
our market, but I am an optimist and hope for an upswing in 2011.” WSS customers: Representatives from Crystal Cruises technical and commercial management, from left: Robert Koven, vice president purchasing; Edward Carney, director technical marine operations; Sandra Yee, manager technical purchasing and Knut Aune, vice president technical marine operations.
Knut Aune: “I agree with Bob. We are seeing
some positive economic indicators. We have made some serious investments to enhance the offer to our guests in the areas of food, design, itinerary, crew and entertainment.”
“It's amazing. There's never a drop in the level of service” Sandra Yee, manager technical purchasing, Crystal Cruies 55
ww innovation
CUSTOMER FOCUS
Understanding customer needs only half the job Feedback from customers is highly prized by most suppliers. It can ultimately determine if the supplier prospers or goes into the history books. But getting customer feedback is only half of the job; how to use it properly is another matter. Wilhelmsen Ships Service (WSS) has
worked for over a decade to develop a structure for identifying customer needs and providing solutions. A market segment approach has been chosen, supported by a full strategic account management program and active involvement by the entire management team, from account manager to president of the company. The account team is thus equipped to work with the customer’s organization at several levels, including the board room. Several segments have been selected, among them cruise. Teams of specialists have been put in place and given the mandate to develop innovative solutions and grow the business. Each segment represents a total package. This method is implemented in a series of steps. The first is to acquire a solid understanding of the market and the customers. Who are their customers? What are their concerns? What must they do to achieve success? Next is to put products and services together in ways that solve real problems, for example how to keep swimming pools clean and clear or how to maintain a comfortable
environment onboard. Next, the solutions developed must be adaptable over time, as needs and preferences change. Such change might be driven by technical factors, legislation or consumer tastes. To bring the process full circle, the supplier must be capable of continuously identifying, interpreting and acting upon feedback from customers. Below, one of the cruise industry’s most prize-winning operators gives some insight into how they work with Wilhelmsen Ships Service.
Crystal Cruises – a history of perfection Crystal Cruises was created in 1988 with a vision to set a completely new standard in luxury travel and world exploration. Their exceptionally designed ships incorporate the best design concepts of legendary ocean liners and world-class hotels, styled with all the latest advancements of modernity. Destination-rich itineraries span the globe, offering savvy travelers unprecedented opportunity for intimate and authentic shore side discovery. Their first ship, Crystal Harmony, debuted in 1990, was heralded for its tremendously spacious public areas reminiscent of grand ballrooms, lavish casinos and splendid dining rooms. What truly set Crystal Cruises’ debut apart from any other cruise line, was the exceptional level of service provided both at sea and ashore. The combination of a spectacularly designed vessel and a staff and crew dedicated to the highest levels of service quickly propelled Crystal Cruises to the very top of luxury travel. Crystal Cruises operates the two top-rated luxury ships in the world: the 922-guest Crystal Symphony (launched in 1995) and the 1,070-guest Crystal Serenity (launched in 2003). Crystal Harmony was retired in 2005. With their commitment to service and innovation, Crystal Cruises continues to define the luxury travel experience. Aboard the two highest-rated cruise ships in the world, one discovers the hallmarks of Crystal – the Crystal Difference: extraordinary service, abundant space, exceptional quality and incredible choices. Crystal Cruises voted #1 for 17th year by Condé Nast Traveler 56 WWWORLD 1 2010
Crystal Cruises voted #1 for 17th year by Condé Nast Traveler For an unprecedented 17th year, Crystal Cruises has been voted the “Best Large-Ship Cruise Line” for 2010 by the influential readers of Condé Nast Traveler magazine (U.S.). The ultra-luxury line holds the distinction of having won the award more than any other cruise line, hotel or resort in history. “To win one Condé Nast Traveler award is truly gratifying. To win 17 times is a tribute to Crystal Cruises’ outstanding people, who consistently exceed our guests’ expectations with exceptional service and decidedly memorable Crystal experiences,” said Gregg Michel, president, Crystal Cruises. Paal Berg, account manager, WSS comments on the award. “We feel that this is also a tribute to WSS for living up to the challenge of Crystal Cruises’ high standards and expectations from a service provider. We are indeed part of their team!”
A ballast water treatment system with a plus The Type Approved Unitor Ballast Water Treatment System (Unitor BWTS) was launched at SMM in Hamburg in September 2010. Text: Don Pyle
Before and after treatment of microorganisms within the system reactor unit.
Germany: It is an efficient system that helps protect the sea from invasive species. The fact that its design focuses on minimizing costs during installation, operation and maintenance makes it a real contender in this growing market. Interest in the system has been high from the start. Many ship owners and operators have recognized that legislation requiring such systems is coming and want to secure a smooth decision-making process and a solution based on the best available technology. Type Approval has been a key issue. The Unitor BWTS has now been awarded Type Approval by the South African Maritime Safety Authority (SAMSA). This means that the Unitor system has proven its efficacy in all water conditions and on all types of vessels. Legislation is looming. The IMO Ballast
Water Convention will when enacted require all merchant vessels to have an onboard system for ballast water treatment. Ratification will take place 12 months after 30 countries representing 35% of the global merchant tonnage sign up. As of August 2010, 26 countries representing 25% of the world’s tonnage have signed up. Some industry experts predict ratification already in 2011.
System description. The Unitor BWTS
combines the use of cavitation, sterilisation and filtration to eliminate invasive species from ballast water. The system consists of two reactor vessels installed in series, plus a filter. Nine configurations are possible, handling flow rates from 150 to 4,000 m3 per hour per ballast pump. Larger flow rates can be achieved with parallel systems.
WWWORLD 1 2010 57
ww innovation The manometers indicate the injection pressure of NOxCare 40 when the system is in use.
Noxcare for Stena Jutlandica While NOxCare Marine Selective Catalytic Reduction (SCR) systems are installed on the passenger ferry Stena Jutlandica, Wilhelmsen Ships Equipment service engineers are gaining valuable training. Text and photos: Kaia Means
othenburg, Sweden: By the end
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of the year, the NOxCare Marine SCR system will be up and running on Stena Jutlandica, the passenger ferry that runs between Gothenburg and Fredrikshavn. In November the system was inspected by three WSE employees being trained by Yarwil’s technical managers Ola Sonesson and Tommy Johnsen. “The training has been very good,” says WSE service engineer Ronny Solesvik, based in Ålesund, Norway. “We’re getting to know the system very well,” he says as he looks at the urea tanks installed on Stena Jutlandica. Yarwil has contracts to deliver SCR systems all over the world, including newbuilds in China, Stena Line ferries, Gerware Offshore and the Swedish Coast Guard. Onboard the Stena Jutlandica eight old SCR systems have been replaced. The Stena Jutlandica is the first of Stena’s ships to acquire a NOx reduction system from Yarwil. But Yarwil has agreement with the whole Stena fleet to deliver the urea solution (NOxCare 40) – the consumable used by the SCR systems. Hands-on. Stricter emissions regulations in
Sweden and stronger enforcement of internal environmental policies in Stena have necessitated upgrades. The trainees had three days of training before the hands-on inspection of the system onboard Stena Jutlandica, which has four 58 WWWORLD 1 2010
MAN main engines of 6.5 MW and four MAN auxiliary engines of 1.5 MW – with an SCR system installed for each engine. NOxCare 40 (urea) is injected into the system, which then reacts with the NOx, thereby reducing NOx emissions by more than 90 per cent. Service engineer Michal Bylewski, based in Rotterdam and service manager Zbigniew Dymerski, based in Szczecin, were also on hand. Bylewski was able for the first time to use a brand new portable NO analyzer to measure the emissions and take a print-out of the reading. Eight process control units. In addition
the eight NOxCare Marine SCR process control units in the engine room were inspected. On deck, the team looked over the catalyst house for one of the main engines. “We are planning on getting the SCR system up and running properly, starting in about two or three weeks,” says Sonesson. Since the start in 2008, Yarwil has increased its monthly sales of urea, NOxCare 40, by a factor of five. Even more growth is expected, as new IMO regulations concerning removal of NOx will apply globally from 2016. The North American market has great potential even earlier, as regulations for smaller ships will come to effect already in 2014. These regulations also include reduction of particulate matter. Resources are therefore being invested in this future area of growth: filtration of particulate matter from ship engine exhaust.
The control cabinet and the display indicating process parameters
Yarwil technical manager Ola Sonesson (left) and WSE service manager Zbigniew Dymerski inspect one of the NOxCare 40 injectors. Service engineer Ronny Solesvik looks on.
Service engineer Michal Bylewski checks the NOxCare 40 supply pump. WWWORLD 1 2010 59
ww innovation
Service engineer Michal Bylewski is happy to have a new portable NO analyzer
New IMO regulations concerning removal of NOx will apply globally from 2016.
From left, service engineer Ronny Solesvik, service engineer Michal Bylewski and technical manager Ola Sonesson in discussion by the catalyst house for one of the main engines
Yarwil a success Yarwil started in late 2008 as a 50/50 joint venture of WW and Yara. “We started with two bare hands, and now we have a nice business going,” says Yarwil managing director Kai Låtun. “We’re already making a profit.” The company has orders for 50 Selective Catalytic Reduction (SCR) systems, which uses urea to neutralize harmful Nitrogen Oxide (NOx) emissions from ships. Unique. “We are unique, the only company in the world that provides both the NOxCare SCR
systems and the urea, NOxCare 40.” The idea behind the joint venture was that WMS could bring the urea, Yara’s NOxCare products to the market via its vast global network in the maritime industry. Yara is the world largest producer of urea and the market leader of the product for the land based and the heavy duty vehicle industry. Via WMS, which delivers services and products to about half of the world’s sailing fleet, Yarwil has access to the marine market, and is able to provide service and training worldwide. Yarwil itself is a lean operation, with only seven employees. 60 WWWORLD 1 2010
Stena Jutlandica’s smokestack funnel WWWORLD 1 2010 61
ww environment The world as I see it
Keeping up means slowing down Wallenius Wilhelmsen Logistics (WWL) and World Wildlife Fund (WWF) believe that ports and vessel operators should work together to promote slow steaming. ondon, UK: In a statement issued on
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World Maritime Day this September, the idea of slowing down as a means of lessening shipping’s harmfull impact on the environment is promoted. The statement is signed jointly by Arild B Iversen, CEO of WWL and James P Leape, director of WWF International. We quote: ”Going slow has already proven its efficacy as a cost-saving measure in the face of rocketing fuels prices. It is also the measure most likely to produce a speedy reduction in shipping emissions. Just like trucks, cars, factories and other producers of emissions, shipping is under the microscope – and not without good reason. International shipping presently accounts for 3% of global carbon emissions.” New regulations. ”Regulatory action on
this front is just beginning, and he real impact of the new environmental standard is yet to be felt. For example, starting in 2012, the ships travelling within 200 nautical miles of US and Canadian coastlines will be required to use cleaner, more expensive, low-sulphur
62 WWWORLD 1 2010
The way the world looks depends largely on where you are. In order to balance the traditional head office view, WW World is challenging managers from our worldwide organization to give their views on the market situation, current events and other subjects of interest.
india
Our guest this time is NAKUL MALHOTRA, area director –
subcontinent, Wilhelmsen Ships Service, Dubai, UAE.
fuel. And when the fuel becomes even cleaner, as required by 2015 legislative mandate, fuel costs will jump yet again by a staggering 60%. Many other nations are also set to introduce comparable legislative requirements for cleaner fuels.” Others measures are expected as well, including an expected global carbon regulatory scheme by 2015.
What recession?
Slowing down. ”Despite the increasing
cost associated with going greener, shipping will remain the most efficient way to trade goods, and slowing down guarantees a longterm strategy that is both cost effective and environmentally sustainable. For example, a ship steaming from Baltimore, USA to Bremerhaven, Germany at 19 knots will use approximately 59 tonnes of fuel per day and emit 3,900 tonnes of CO2; by slowing just slightly to 15 knots, that vessel would consume 37% less fuel per day, which would curtail its emissions by 20% for the voyage. The power of this solution is its simplicity: no rules, regulations or even research needed. The main obstacle is just a widely held perception of time: if we slow down, we get less done: if we speed up, we get more done. In reality, when it comes to intermodal trade, the case is often closer to ‘hurry up and wait’.” The two goes on to describe how better planning, less congestion in ports and less waiting times in general will not lead to delays for the cargo owners, while at the same time reducing emissions significantly. The statement ends in a very optimistic prediction: ”We predict that zero-emission deep-sea shipping, sailing at 10 knots, powered by renewable energy and supported by a highefficiency supply chain structure, will be a reality by 2040. It’s a solution that is not only in the best interest of the shipping industry; it’s also better for manufacturers, and it’s best for the public. Slowing down requires no technical advances, no regulatory changes, only consensus and a meeting of minds. A sustained speed reduction now will put the shipping industry firmly on track for a zeroemission future.”
dubai
"by slowing just slightly to 15 knots, that vessel would consume 37% less fuel per day, which would curtail its emissions by 20% for the voyage."
As we enter the Indian festive period and having looked at the figures for Indian GDP achieved to date and projections going forward post financial crisis the immediate words that come to mind from an Indian domestic point of view is Recession – What Recession? ndia/Dubai: At the height of the crisis in 2009, India registered an astounding GDP growth rate of 6.6 % compared to a world average of negative 1.2% - second only to China. India’s increasing position on the world stage is reflected by its ambitions to be more active in international policy making and a plethora of foreign state visits being accompanied by huge business delegations. There seems to be a general consensus that India lags China by 10-15 years which means India is essentially where China was at about the turn of the millennium – what an opportunity!
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sector, particularly steel. Energy resources is a challenge and although many estimates for various commodities exist - one of them, which boggles my mind, is that although one of the largest coal producing companies in the world is in India, the country will still need to import somewhere in the region of 135 million tonnes per annum by 2012 for various reasons. Then, of course, there are the oil and gas needs and a multitude of other commodities. We’re in the right place. These sorts of
opportunities come very rarely and from a Wilhelmsen perspective we could not be in a better place at a better time. After a very rapid and fairly major expansion programme to establish Wilhelmsen Ships Service’s pan India presence we are really seeing the positive effect it has had. The move to invest and grow
"The offshore segment ignores any remaining financial crises"
A young nation. Indian companies are grow-
ing in confidence and their well-known entrepreneurship skills are being put to the test on the international stage with some major M&A activity recently. With a unique population demographic wherein over 50% of the population is below the age of 25 and 65% hovers below the age of 35 India’s position of being a global personnel and knowledge resource provider stands firm. A middle class of approx 400 million people with aspirations to enjoy all the products and services the world has to offer directly means a phenomenal trade requirement plus the increasing interest in the Indian manufacturing
our presence in India was a direct result of the changing trade patterns for our customers and the growing interest in Indian shipyards for new buildings – in short, we listened to our customers and are continually working to provide them product and service solutions to their growing needs in India. This is not always easy due to the stringent regulations and restrictions but we have made some headway. We have done a lot and the team in India has worked tirelessly to establish this foundation, but the only thing we have realized is that the more we have done the more there seems that we can do. One can only look forward to the future. WWWORLD 1 2010 63
historic corner
Wilh. Wilhelmsen was established as an independent company in 1861 and will celebrate its 150th anniversary in 2011. WW World would like to share some of the company’s long and exciting history with its readers. Readers with stories to share or feedback to give are welcome to send an email to ww.world@wilhelmsen.com.
Offshore – dream and drama – part 2 WW’s efforts as owner and operator of floating drilling rigs and hotel platforms were no less comprehensive and demanding than the supply service in WOS, as we described in the last issue of WW World. Norwegian shipyard industry also underwent great technological development. Text: Hans Chr. Bangsmoen NORWAY: Like the Ulstein Group’s UT supply
ship, the Aker Group’s H-3 drilling rig would turn out to be the most successful and widespread semi-submersible oilrig in the 1970s and 1980s. In 1973/74 WW entered fully into the rig market by ordering three H-3 platforms. The first, Treasure Hunter, was delivered from Aker Yards in December of 1975. The two other rigs, Treasure Seeker and Treasure Hunter, were built on licence in Singapore and Finland respectively and delivered in 1977. Eventually the rig market was divided in two parts: one market for drilling activities, the second for hotel/construction activities. Treasure Hunter was actually rebuilt as a construction support vessel the year after delivery, and Treasure Finder served as a hotel platform for 500 crew and four helicopters as well as storage for diving equipment. Treasure Seeker, however, was rebuilt in Norway and eventually became one of the most advanced drilling rigs in the world, being especially equipped for deepwater operations and high pressure drilling. It earned its place in Norwegian oil history when it started oil explorations at the Tromsø field in 1980. The gold age. At the beginning of the 1980s, the rig fleet was complemented with four new rigs: the hotel platform Treasure Support and the drilling rigs Treasure Swan, Treasure Scout and Treasure Saga. The years 19821985 became the golden era in WW’s offshore activities showing 69%, 75%, 58% and 64% respectively of the group’s operating profit. The search for new exploration areas continued throughout the 1980s. In cooperation with an American partner, Sonat Offshore Drilling, and Norsk Hydro, WW developed a brand new drilling rig that could withstand extreme weather conditions, such as in the Barents Sea. The price was USD 100 million, an enormous sum at the time. The new rig was immediately contracted by Norsk Hydro for five years to drill outside Northern Norway. The downturn. When the price of oil 64 WWWORLD 1 2010
Polar Pioneer: The rig was one of a kind; at its time the world’s largest drill rig and built to operate under the most extreme weather conditions. (Photo: WW’s historical archives) dropped by 50% in the winter/spring of 1986 the bottom fell out of the offshore market. The oil companies tightened their budgets, cancelled or postponed projects. This had serious consequences for WW, where the offshore activities had compensated for weak results in the liner traffic the first years in the 1980s. From being financial life belts the oilrigs now became financial millstones as they were laid up one by one. In a very short time the situation turned from dream to drama. As part of the restructuring process after the
financial crisis of 1986-1988, Wilrig A/S was established as a company, with a WW ownership share of 24,5% and some of WW’s rig activities. The Polar Pioneer and some others were not included. In 1994, WW sold its share (47,5%) in Polar Pioneer and the remaining shares in Wilrig A/S (20,5%) and thus made its exit from the offshore market. An era that was initiated more than 20 years previously and had committed large financial and human resources during its most active years was over.