NO. 1 2013 26th YEAR corporate magazine for the Wilh. Wilhelmsen group
WW Profile:
teaming up to win Petter Traaholt, president of Wilhelmsen Technical Solutions likes to win, but always as part of a team.
Special report:
A HEALTHY MARINE ENVIRONMENT
Making history:
FIRST FEMALE CAPTAIN
Sea Launch:
A LOGISTICS MASTER CLASS OPERATION
The CEO's letter
contents NO 1 2013
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Published by: Wilh. Wilhelmsen Holding ASA Corporate communications NO-1324 Lysaker, Norway
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Publisher: Group vice president Benedicte Gude Editor: Arild S Johannessen EDITORIAL BOARD: Naja Boone Jørn-Even Hanssen Einar Chr Erlingsen Arild S Johannessen Benedicte Gude Liv-Nina Myklebost Editorial contributors: Hans Chr Bangsmoen Elizabeth S Lingjærde Bjørg Ekornrud Bill McAllen Einar Chr Erlingsen Kaia Means Karin T Erlingsen Atle Mikkelsen Frederic Fontarosa Elsa Naumann Arild S Johannessen Jon Halvard B Olsen Eric Johannessen Don Pyle Espen Jørgensen Stacey Trodal Isabella Kliger Marianne H Wang Design and layout: Redink AS www.redink.no Printer: RK Grafisk AS Printed on paper approved by The Swan, the official Nordic ecolabel CIRCULATION: 8 500 copies Technical Publisher: Forlaget Media AS, NO-3110 TØNSBERG, Norway
Tor Langrud on safety issues.
08-24 SPECIAL REPORT 40 years after the London Convention was adopted, we explore the shipping industry’s impact on the marine environment - and what the Wilhelmsen group is doing about it.
26 FIRST FEMALE MASTER Meet Renate B Karlsen, the first female captain in our 151 year-long company history.
28 A LOGISTICS MASTER CLASS OPERATION The Sea Launch project is one of the most complex logistics operations in the world. WW is involved at every step of the way.
35 PEOPLE&PLACES Read about a surprise visit from an external inspector, a truck repair man and an artist, and happy children in The Philippines.
39 KEY OBJECTIVES WW ASA Modern, green and profitable. These are the key objectives for WW ASA in 2013.
41 KEY OBJECTIVES WMS Wilhelmsen Maritime Services’ main challenge for 2013 will be to maintain an operating profit margin of 9%.
42 ROOKIE SAILOR “Office paper pusher” Jon Halvard B Olsen went to sea for the very first time. This is his story.
46 EUKOR 10 YEARS EUKOR is lining up for a grand celebration this December, as its president and CEO Sjur Galtung is planning to step down from the company that he has been instrumental in developing.
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Well done in a tough market!
48 MR. TEAM PLAYER Petter Traaholt enjoys competing and likes to win, but always as part of a team. Meet the president of Wilhelmsen Technical Solutions.
2012 has been a year with inevitable changes in the world’s political and economical environment. In this very shifting landscape, and with a majority of the global shipping industry in dire straits, it is a pleasure to report that the group has managed well throughout the year.
52 ON SITE Timing, trust and market knowledge are the main reasons for Wilhelmsen Marine Fuel’s success.
54 A BIG DIFFERENCE It only takes 12 to 15 minutes to answer, but the WW Engagement Survey is a strategic tool that can make a difference to the bottom line.
Volume growth, an increase of nine new vessels and significant gains from sale of shares, are some highlights from our shipping and logistics activities. The current weak shipping market has, however, impacted owners’ purchasing capabilities challenging growth in our maritime services segment. Having said that, I am impressed by the fact that ship management is still growing, ships service keeps its market penetration and the order intake is growing albeit at a slow pace for technical solutions. In addition to a generally difficult market, challenges in 2012 include recalling our ballast water treatment solution and lately the anti-trust investigation towards operating companies in the car carrying industry.
56 HOW HAVE WE PERFORMED? 4,860 WW employees completed their Performance Appraisals (PAs) last year.
57 A MAN WITH A MISSION Erik Toft provides for the manning needs of Wilhelmsen Ship Management’s 450 vessels.
58 RO-RO RODEO The Port of Baltimore’s annual Ro-Ro rodeo for its stevedores is the living proof that the last cowboys are not dead.
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60 WAR HISTORY This October it was exactly 70 years since WW’s MV Trafalgar was torpedoed in the Atlantic Ocean.
What can we expect from 2013? No doubt new challenges, but also opportunities. Development of the world economy and the shipping industry in particular will affect how we as a group will perform. We have a sound business model and a long term perspective, and I am confident that we are ready to meet both challenges and grasp opportunities that will come. It is, however, extremely important that we continuously adapt to changes facing our group and industry.
62 SMILING TRAINEES Eirik Berg and Finn K Harung have been selected from hundred of candidates to become maritime trainees. No wonder they are beaming!
Every day, 365 days a year, 21 000 mariners and onshore colleagues all over the world do their best in order to achieve the right results the right way. Thank you all for your continuous efforts for the group and our customers. I look forward to working with you all in the year to come. Season’s greetings to you and your family!
63 THE WORLD AS I SEE IT Regardless of the financial turmoil in Southern Europe, business director Frederic Fontarosa enjoys the French “art of living”.
64 HISTORIC CORNER During its long history, WW has been involved in the tanker trades during three periods – not always with success.
Today’s climate also brings along opportunities. We know that the merchant fleet is growing and we are well positioned to take our share of the growth by increasing our market penetration and offering new and improved products. The offshore and energy industry is a segment where we see opportunities as investors and potential synergies with our current operations, not least within ships service and technical solutions. This led to an investment in NorSea in June, the leading provider of supply bases and integrated logistics solutions to the Norwegian offshore industry.
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Thomas Wilhelmsen Group CEO WWWORLD 1 2013 3
WWmilestones Seatrade’s Ship Agent Award to WSS AMB The 9th edition of Seatrade Middle East & Indian Subcontinent Awards which took place on Monday 26th November brought in yet another Ships Agent Award for WSS AMB.
Awarded: ‘Shaping the maritime industry” is a challenge we look forward to fulfilling,’ said group CEO Thomas Wilhelmsen (to the left) when presented the “Next Generation Shipping Award” by Nor-Shipping’s Vidar Pederstad on behalf of Lloyd’s List Global Awards.
Lloyd’s List award to Thomas Wilhelmsen A Lloyd’s List jury has awarded group CEO Thomas Wilhelmsen The Next Generation Shipping Award 2012. Oslo, Norway: The award is a new category
in the Lloyd’s List global awards and recognises the most influential people in shipping. The jury commended Mr. Wilhelmsen on his determination to look forward, saying that he exemplified everything they were looking for: “Since taking over as chief executive from his father he has sought to make his mark both on the company and in the wider industry with a coherent strategy for profitable growth that has quickly earned him the respect of his peers and the market. Our judges felt that he exemplified everything they were looking for in a next generation shipping industry leader.”
New partners: Bring Polarbase (BPB) is now a WSS sub-agent and service provider in the Arctic region. This photo commemorates the signing event. From the left: Ulf Rønquist (BPB), Inger Lise Josefsen (WSS). Randi Næss (BPB). Gunnar Holck (WSS), Ida L Nilsen (WSS) and Bjørn Korsnes (WSS). (Photo: Don Pyle)
First synergy from NorSea investment
Wilhelmsen Ships Service has announced an agreement with Bring Polarbase in northern Norway to be a WSS sub-agent and service provider to the marine and offshore sectors in the region. Hammerfest, Norway: Bring Polarbase is partly owned by the NorSea Group, of which
Wilh. Wilhelmsen Holding acquired 35.4% ownership earlier this year. According to the agreement, Bring Polarbase will offer WSS marine chemicals and marine products to marine and offshore customers operating in the Barents Sea, where they have a significant business presence. Bring Polarbase will also be a natural stock provider for vessels transiting the north east passage.
Orcelle Grant Savannah, US: Advancing a shipping and
2012 Orcelle Grant: The award was given to Nonox Emulsion Combustion Systems, submitted by Erik Cottell and Wes Pence. 4 WWWORLD 1 2013
logistics solution for increased sustainability through zero-emissions transport on land and at sea, the Orcelle Grant of USD 100,000 as well as technical support from Wallenius Wilhelmsens Logistics’ (WWL) team of professional naval engineers and architects has been awarded to Nonox Emulsion Combustion Systems.
WTS acquires safety company Wilhelmsen Technical Solution (WTS) announced in November that they had acquired Novenco Fire Fighting A/S (NFF). Oslo, Norway: ‘The acquisition of this niche player in water mist technology further strengthens our safety portfolio, taking us an important step closer to becoming the world’s leading fire fighting provider in the maritime and offshore industries,’ says Petter Traaholt, president WTS. NFF exports over 90% of its products to customers in more than 26 countries; its main markets are Asia, followed by Europe and the US. This customer portfolio will expand WTS’ customer base for safety applications in cruise and yacht particularly. With employees based in Denmark, Italy, China and Korea, NFF’s international sales and distribution network will complement WTS’ global reach very well. Water Mist is an extremely effective fire fighting media and consequently it is becoming a preferred solution for many applications in the Maritime market. The system is non-hazardous to personnel, environmentally friendly and has a short deployment lead time.
19 weeks
Biggest ever
This is the average time a container with line aquavit spends on board a WW vessel in the Around the World Service. During the passage, the vessel crosses the Equator twice. The spirit is transported in matured oak barrels on deck in containers. Started in 1927, this is one of our company’s oldest traditions.
this year, our 262 metres long MV Tampa under the command of captain M A Bilal became the biggest vessel ever to berth in Bell Bay. The operation went very well, without the assistance of tugs.
Tasmania: In September
Remarkably, it is the third time in a row for AMB to receive such a prominent award. The Ship Agent trophies for years 2010, 2011 and 2012 are proudly displayed at the regional centre in Dubai. The Seatrade awards provide the platform for the region's most exciting and coveted maritime shipping and maritime awards. With 850 invited guests, Monday's gala was officially announced as the largest shipping industry gathering in the world so far this year. This exclusive event took place at the Atlantis Ballroom at Atlantis the Palm, Dubai where industry's most prominent players converged for an evening of awards, networking and entertainment. The evening gala was hosted by Jeremy Thompson, one of Britain’s most experienced television newsmen, also a correspondent for Sky News, the BBC and ITN. Nikolai Norman, Sales Director AMB who received the award on behalf of WSS, commented on this significant achievement: "It is a great pleasure to be recognised for the third time in a row and the award goes to the entire AMB team for fantastic efforts made every single day. Apart for being recognised by the industry, we also got the chance to celebrate the award with many of our close and highly appreciated customers present at the event. No doubt it provides magnificent energy and PR towards the marine community when the spotlights are pointed in direction of Wilhelmsen Ships Service at this exciting and coveted maritime shipping event”.
First and last Since 1887 all Wilhelmsen vessels have been given a name starting with the letter “T”. The tradition began with SS Talabot, a very successful ship. The latest ship to be given a T-name is our newest car carrier MV Tongala. And there are many more to come…
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WWmilestones
5 questions: Tor Langrud WW group security officer, Tor Langrud, evaluates and manages risk on a daily basis for the WW group. We caught up with him to learn more about the importance of security for our global organisation.
WWL and ALS join forces On 1 October 2012, Wallenius Wilhelmsen Logistics (WWL) signed an agreement to join forces with Abnormal Load Services BV (ALS), the specialist in out of gauge transport and supply chain solutions. Ittervoort, Netherlands: WWL has acquired a 60% stake in ALS. With this investment and combining the capabilities of WWL and ALS, we will be able to offer an improved and expanded product to existing and new customers. ALS will become an integrated part of the WWL product offering, adopting the name Wallenius Wilhelmsen Logistics Abnormal Load Services (WWL ALS). The creation of WWL ALS closes an important network gap in terms of offering high-quality transport and distribution solutions for High and Heavy and Breakbulk customers, entrusting us with larger agricultural, construction, mining and other out-of-gauge cargo related logistics.
Text and photo: Stacey Trodal
WSS AMB recognises best office
Wilhelmsen Ships Service Sri Lanka has been declared the best office for 2012 within Africa, Middle East & Black Sea (AMB) region. Doha, Quatar: Since 2007, the offices within
the region have been recognised for their exceptional performance. In the first round of selection, five offices were nominated, subsequently all nominations were put to the secret vote by the regional management team to identify the best office for 2012. Dag Schjerven, president & CEO Wilhelmsen Maritime Services declared WSS Sri Lanka the best office for 2012 in the presence of Bjørge Grimholt, president WSS and Knut Brathagen, regional vice president AMB and the rest of the AOP workshop participants.
WSS Iraq and WSS UAE were declared as Best Office Runner-ups. ‘WSS AMB region identifies the best office within the region every year; it’s usually the office which goes that extra mile in the above set criteria. Congratulations to WSS Sri Lanka for winning the best office award for 2012. I also congratulate WSS Iraq and WSS UAE for winning runner-up awards. I hope this award inspires all other offices in AMB region to get qualified and be a Winner next time,’ comments regional vice president Knut Brathagen.
What is a group security officer? A: My role is to advise the group and implement initiatives, risk assessments and training across all levels of the group. It’s an interesting but at times challenging position. We are constantly faced with new challenging scenarios, international regulations and laws we must align with. Q: What are the challenges for the WW group in 2013?
As a global organization, we are faced with challenges every day that can impact upon colleagues and business interests. These can be anything from an internal risk which can arise from an employee's inappropriate actions, to an external disaster which is out of our control, such as a cyclone, which can cause a breakdown in routine operational processes. The growth of the Internet and related information security threats have resulted in new security issues we have to contend with. Q: What’s on the agenda for you in 2013?
Office to open in Myanmar Wilhelmsen Ship Management will after a few years of absence reopen a manning office in Myanmar. The new office was incorporated on 1 November 2012 and will be named Wilhelmsen Marine Personnel (Myanmar) Company Limited. ‘Myanmar’s seafarers are known for their adaptive qualities and are well suited to work in a multinational crew environment. We hope to leverage on this market for future growth in our pool of seafarers,’ says Erik Toft, vice president Wilhelmsen Marine Personnel.
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A: Employee awareness of risks related to tech-
nology is definitely a continuing focus area in 2013. While our employees are our greatest asset, they are also the most vulnerable. We’ve become a more mobile global workforce, with many of us using phones, tablets, and laptops to stay connected to work from any location. Many are just not aware of the risks associated with the online world. I hope by raising more awareness around this we can empower our employees going forward.
WW group security officer: ‘Employee awareness of risks related to technology is definitely a continuing focus area in 2013,’ says Tor Langrud. Q: Companies are becoming more aware of the
dangers associated with cyberspace, how has the WW group approached this?
Q: What are the building blocks needed to create an effective information security system for a global company such as the WW group?
A: On the technical front, we have professional
A: Two main pillars have to be in place:
support from Wilhelmsen IT (WIT) who manages the group’s critical infrastructure to ensure key data and systems continue to be safe and resilient. Furthermore, governing structures and documentation are continuously reviewed and updated and implemented as needed. We have also implemented various initiatives to improve our colleagues´ knowledge, skills and awareness. Today our employees have access to e-learning tools. In addition to communicating on current risk and threat, we have also created a site on our group’s intranet where employees have access to information relating to security.
Appropriate technical solutions and sensible human behaviour. Wilhelmsen IT Services, WIT, is contributing by supporting the organization's need for technical solutions and simultaneously assessing, implementing and maintaining the balance between need of confidentiality, integrity and access to information to run our businesses. However, no matter how sophisticated the IT structures and functions we have in place are, we as individuals will still be the key by being aware and acting wisely when using any kind of IT equipment both at work and privately.
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Special report shipping & marine ENVIRONMENT
Going green
in the blue sea In 2012, it was 40 years since the "Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter” was adopted, marking the first serious milestone on the road to an environmental friendly shipping industry. In this special report we explore the maritime industry’s impact on the marine environment – and how the WW group contributes to a greener future.
MV Tamerlane has a rendezvous with dolphins while at sea. 8 WWWORLD 1 2013
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Special report shipping & marine ENVIRONMENT
Towards a sustainable maritime environment London: Dr. Stefan Micallef is director for the Marine Environment Division in the International Maritime Organization (IMO). In this interview with WW World he talks about the long and winding road to merge the world's shipping nations into a joint understanding on how to develop a sustainable maritime future. Text: Arild S. Johannessen and IMO Photo: International Maritime Organization and Tommy Normann
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he Malta born Micallef was appointed director for the important marine environment division in early 2012, but has worked for the United Nations since 1990. With a Ph.D. in marine toxicology from the University of Wales, he is one of the world’s foremost experts on both the regulatory regime and the evolvement of an environmental consciousness among the ship owners and flag states.
T
How would you describe the progress since the London Convention in 1972 and until today when it comes to environmental awareness in the shipping industry? “There has been a lot of progress reflecting a broader awareness generally of environmental issues and advances in marine science. We have learned much more about the biodiversity of the world’s seas and oceans, issues of marine biosafety in general and the implications for food safety, and the vulnerabilities of marine and coastal ecosystems to manmade risks. Consumers increasingly demand “green” credentials and all industries have had to respond to that, shipping is no exception.” “As the different international treaties relating to the marine environment have been progressively adopted and implemented, environmental awareness has steadily increased and this, in turn, has encouraged a more pro-active regulatory approach, based on the precautionary approach and the “polluter pays” principle. From IMO’s perspective, there too has been a widening of the scope of international regulations pertaining to the protection of the marine environment from the adverse effects of pollution by ships.” The “Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972” (London Convention) is one such good example. This Convention was one of the first global conventions designed to protect the marine environment from human activities through strict prohibition of practices that relied on the sea as a convenient, free-for-all rubbish dump. It was adopted the same year during which the first-ever United Nations Conference on the Human Environment was held, in Stockholm, which focused attention on the need for an allencompassing commitment to safeguard the human environment. The importance of the London Convention was widely recognized from the outset, as evidenced by the fact that
Dr. Stefan Micallef is director of the Marine Environment Division within the IMO Secretariat. it entered into force in record time, less than three years after it was adopted, in 1975. Since its adoption four decades ago, it has evolved. Since its adoption we have seen prohibitions come into force for dumping of industrial and radioactive wastes, as well as for incineration at sea of industrial waste and sewage sludge, while the 1996 Protocol to the London Convention (London Protocol) has introduced a total prohibition on all dumping of wastes, with very few exceptions pertaining only to those materials on the so-called “reverse list” – and these, too, are linked to stringent conditions. In recent years, Contracting Parties to the London Protocol have taken ground-breaking steps to mitigate the impacts of increasing concentrations of carbon dioxide (CO2)
in the atmosphere with a view to reversing ocean acidification. The London Protocol is currently the only global framework to regulate carbon capture and sequestration (CCS) in sub-seabed geological formations for the purpose of permanent storage and isolation of CO2 waste streams. In 2010, the first-ever risk assessment and management framework for scientific research involving ocean fertilization was adopted and further work is on-going to develop a legally binding, global control and regulatory mechanism for ocean fertilization and other activities that fall within the scope of the London Convention and Protocol and that may cause harm to the environment. Following very closely in the footsteps of the 1972 London Convention was the WWWORLD 1 2013 11
Special report shipping & marine ENVIRONMENT
This is IMO IMO – the International Maritime Organization – is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention and control of marine pollution from ships.
“International Convention for the Prevention of Pollution from Ships, 1973” (1973 MARPOL Convention). With its six annexes addressing all types of marine pollution from ships, it is the most comprehensive international instrument of its kind to date. Broadly, it covers vessel-source oil pollution (Annex I); discharges into the sea of noxious liquid substances carried in bulk as cargo (Annex II); marine pollutants carried in packaged form (Annex III); ship-generated sewage (Annex IV); garbage from ships (Annex V); and air pollution (Annex VI). “To give you some illustrations of the way this Convention has evolved and the forward environmental thinking behind recent MARPOL amendments, on 1 January 2013 the Baltic Sea will become the first MARPOL “Special Area” to benefit from a general prohibition of sewage discharges, with strictly controlled exemptions for passenger and cruise ships. Also from 1 January 2013 onwards, a general prohibition will apply at the global level to the discharge of all garbage (the discharge of plastics is already subject to a global ban). And also on 1 January 2013, the MARPOL “Emission Control Area” for the United States Caribbean Sea will enter into force. In the last case, I should also underline that there are three others ECAs already in force, namely, the Baltic and the North Sea ECAs and the North American ECA, which covers both the Atlantic and Pacific coasts of Canada and the United States. “The MARPOL Convention also addresses global warming concerns by prohibiting ships’ emissions of ozone-depleting substances under the original Annex VI. Most recently, in July 2011, a formidable milestone was reached with the adoption of amendments to MARPOL Annex VI to limit and reduce greenhouse gas emissions from ships through technical and operational measures aimed at enhancing ships’ energy efficiencies. These amendments effectively introduce the
world’s first-ever, globally enforceable control regime for an entire industry sector and will enter into force on 1 January 2013. “While I may sound partisan at saying IMO deserves the credit for being proactive in tackling such emerging environmental concerns, I should emphasize that the Organization conducts all its regulatory work in close consultation with the shipping industry and other relevant maritime stakeholders. Due to the highly technical nature of this work, the Organization counts on the input of their expertise and experience. Of course, the renowned “IMO spirit of co-operation” has helped to ensure both a pragmatic and robust approach to regulation and this, in turn, aids effective implementation and enforcement. I firmly believe that the prevailing consensus-building is the most convincing indication of a genuinely shared – and growing – environmental awareness on the part of the Member States, shipping industry and other stakeholders.” Today, IMO and its member States have adopted 21 environmental treaties, of which 17 are in force today. There is no denying that the environment no longer comes cheap. What are the most important treaties yet to sign, and what are the main obstacles? “Sometimes, the slow process of ratification reflects different national priorities in the countries that need to ratify the international treaties and write them into their own national laws. Two major environmental treaties adopted by IMO are yet to enter into force. “First, ratification of the “International Convention for the Control and Management of Ships' Ballast Water and Sediments, 2004” has been slow. Yet the Convention is an outstanding example of IMO regulation breaking new ground in order to counter the widely recognized and – possibly irreversible – harmful effects on local environments and ecosystems from the discharge overboard of invasive species in ships’ ballast waters and sediments containing alien organisms and pathogens transferred from other areas in the world. “IMO has also done a tremendous amount of work on developing and adopting the various guidelines required under the Convention to facilitate implementation. In addition, partnership initiatives such as Globallast and the Global Industry Alliance have been greatly instrumental in providing technical assistance and R&D support to help individual countries and industry stakeholders with concrete solutions to make the Convention work for them. “It is however a source of great concern and
disappointment that after eight years since the adoption of the Ballast Water Management Convention, ratification still falls short of the requisite 35% of the gross tonnage of the world’s merchant shipping (the combined merchant fleets of the 36 States that have so far ratified the Convention represent 29.07% of the world’s merchant shipping). While recognizing that there may be a number of reasons for this state of affairs, any further delays will be a disincentive to the industry to make the required investments. Postponement also risks creating bottlenecks in shipyards when the Convention’s deadlines for the retrofitting of existing ships approach and this, in turn, would add to the cost of installation of the requisite shipboard ballast water management systems. “The other treaty awaiting ratifications to bring it into force is the “Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009”. “Again, IMO has ventured into new territory by embracing the regulation of land-based facilities, as well as ships, into a comprehensive instrument addressing all safety and environmental aspects relating to the disposal of ships at the end of their life and the responsible management of associated waste streams and their disposal. However, there are positive indications that ratification is receiving serious consideration by a number of governments. The declared intention of the European Commission to develop a new European Regulation based on the technical requirements of the Hong Kong Convention is also very encouraging in this regard. “Ship recycling countries, in particular, should redouble their efforts to ratify the Convention in view of the environmental and safety benefits they would derive from such action. The mandatory standards established by the Convention are pragmatic and realistic – they take account of both the particular characteristics of international shipping and the commercial realities of the ship recycling industry. IMO has spent much effort to facilitate their global implementation through the development of guidelines required under the terms of the Convention.” Shipping has struggled with a recession since 2008. Is there any leeway for environmental progress in the industry in these circumstances, and what do you think is easiest to achieve? “It is certainly true that for the industry the stakes are very high, because it has to make the right decisions about investments in innovation and new technologies, which
“Safety culture and environment stewardship” and “Maritime education and training” are two of IMOs pillars for Sustainable Development Goals for the maritime industry.
are integral components of sustainable shipping. The cost burden of such investments can be very considerable and for ship owners already hard-pressed by low freight rates and poor earnings, as is the case in today’s abysmal economic climate, it poses an additional challenge. “There is always the danger that safety and environmental expenditures are lowered to the bare minimum, especially in times of economic hardship. There are however, limits on how far one can cut costs without cutting corners dangerously. “But, at the same time, shipowners are wise and know that they have to meet the environmental regulations, or face the risk of fines and other penalties. Furthermore, I agree that “green” credentials are good for a company. Implementing measures that avoid accidents and pollution are good for business. Cutting greenhouse gas emissions through improving ships’ energy efficiencies can also reduce fuel usage and thus help to save money.” Where do you think we will be 10 years from now, in terms of a sustainable maritime environment? “I think more work will be done in relation to sustainability. Following the Rio+20
Conference, which took place in June of this year, 20 years after the 1992 United Nations Conference on Environment and Development (UNCED) was held in Rio de Janeiro, the United Nations as a whole is working towards developing sustainable development goals. IMO will be taking a lead in developing its own Sustainable Development Goals for the maritime industry, focusing on eight pillars: 1. Safety culture and environment
stewardship;
2. Energy efficiency; 3. New technology and innovation; 4. Maritime education and training; 5. Maritime security and anti-piracy actions; 6. Maritime traffic management; 7. Maritime infrastructure development;
and
8. The adoption and implementation of
global standards by IMO.
Speaking again as a marine scientist, I was very encouraged by the latest initiative of UN Secretary-General Ban Ki-moon in launching, in August of this year, the Oceans Compact to promote, in particular, the sustainable development of the world’s oceans under the
banner of “Healthy oceans for prosperity”. The Oceans Compact sets out a strategic vision for the United Nations system to ensure a more coherent, as well as more effective delivery of its ocean-related mandates including those under the Law of the Sea Convention (UNCLOS). I should think that this is a very timely initiative, given that this year also marks the 30th anniversary of the adoption of UNCLOS. When this Convention was opened for signature at Montego Bay, Jamaica on 10 December 1982, it marked the culmination of nearly a decade and a half of intensive work with the participation of more than 150 countries from around the world acting together in recognition that the problems of ocean usage are complex and closely interrelated and need to be addressed as a whole and through international co-operation. This momentous commitment remains as relevant today as it was then, and all of us have a responsibility to work together to establish and maintain appropriate, precautionary management regimes for the protection and preservation of the marine environment for future generations. I am confident that the IMO Membership, in partnership with the shipping industry and other maritime stakeholders, will continue to deliver meaningful contributions to this end.
Special report shipping & marine ENVIRONMENT
Reducing sulphur is a key to staying ahead of environmental regulations. The Krystallon Exhaust Gas Cleaning System (EGCS) will be installed on WWL operated MV Tarago i 2013. The system will remove sulphur and particulates from the exhaust gasses of the vessels main and auxiliary engines.
Roger Strevens head of global environment, Wallenius Wilhelmsen Logistics Nationality: Irish Age: 35 Education: Mechanical & Manufacturing Engineer at University of Dublin, Trinity College Background: Worked in the environmental sector since starting my career. Career choices have drawn me steadily from the technical toward commercial, marketing and communication territory. Spent six years at WW before joining WWL. Two years at WSS, four years between WSE and WTS. Ambition: To be able to look back and be proud of what I’ve left in my wake Hobbies: Athletic sports, news media, fixing things the kids break
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Zero ambition: the business case Roger Strevens is the new head of global environment in Wallenius Wilhelmsen Logistics (WWL). In this article he explains the challenges and ambitions for the WW group’s environmental frontrunner. Text: Roger Strevens Photo: Stacey Trodal hange happens. This is as true for a tradition-rich industry, such as shipping, as for any other. In shipping there are several drivers that account for change and of these one is growing in importance quickly: environmental regulation. New regulation frequently brings with it new challenges. Some see this as a burden, but at WWL we try to uncover the underlying opportunity. Why? Because it makes business sense. The impact of environmental regulation can have far reaching effects. In 2010, a European Commission regulation came into force that limited the sulphur content of fuel that can be used while at berth in European ports. In 2012 a new Emission Control Area (ECA) came into effect for waters within 200 nautical miles of the North American coast. It mandates an upper limit of 1% sulphur, which affects the kind of fuel that can be used by ships while underway. Changing something as fundamental to shipping as the source of energy, even if it is from one kind of marine fuel to another, has major operational, technical and commercial ramifications. This example also shows the risk to business in failing to react correctly to environmental regulation. It also is indicative of the increasingly complex patchwork of local, regional and global regulation that the industry must navigate. That accounts for the ‘push’ side to regula-
C
tion; the ‘get involved now or you’ll regret it later’ aspect. However there is also a ‘pull’ side to consider and that is where the opportunity tends to lie. WWL have long recognised the value of the latter and that is reflected in our intention to be an environmental frontrunner. By choosing to engage with new regulation ahead of time it is easier to foresee and therefore minimise and manage many of the challenges that it brings. It presents a range of commercial and marketing benefits too, from being perceived as an industry leader to being able to differentiate yourself from the competition. More specifically, it means that we can credibly claim that the high quality services we provide now will continue to be available into the future to our customers. There is one more environmentally progressive step that can be taken though – to go beyond the regulatory minimum. WWL, true to its environmental frontrunner strategy, has a long term zero emissions ambition. We believe this sustainable approach, will have the best overall positive impact on profit, the environment and the communities in which we live and operate. Given that fuel represents about 60% of our costs, the potential business benefit is not hard to gauge. With continual focus, a forward thinking approach and a sensible balance between progress and investment we believe we have the best chance of reaching our zero ambition.
Man with a mission: Roger Strevens, head of global environment in Wallenius Wilhelmsen Logistics. WWWORLD 1 2013 15
Special report shipping & marine ENVIRONMENT
A new regulatory regime Significant environmental regulations will come into effect in this decade to reduce the environmental impacts from shipping including air pollution, greenhouse gases, and the transfer of marine species. The regulatory framework encompasses international, regional, country and state level regulations. With courtesy of Wallenius Wilhelmsen Logistics, this illustration from their last sustainability report shows current and upcoming regulations that will have an impact on shipping and the environment.
Developing Regulations Regulatory Price of CO2
The International Maritime Organisation (IMO) is currently discussing a market based mechanism for CO2 emission in shipping. Parallel to this, the European Union is developing a proposal to include maritime transport emissions in the EU’s GHG reduction commitments. Ballast Water Management Convention
The convention requires all vessels to install ballast water treatment systems from 1 January, 2016. As of 2011, the 30 required Member States and 26% of the required 35% of world tonnage have ratified the convention.
WWL’s global organisation In-plant Vehicle Processing Centres Vehicle Processing Centres
Designated Emission Control Area (ECA)
Equipment Processing Centres Regional -and Head Offices
2006-05-19: Baltic Sea 2007-11-22: North Sea 2012-08-01: US & Canada 2014-01-01: Caribbean
Terminals Ocean trade routes
ECA Sulphur Limits
Inland Distribution Networks
2010-07-01: Max 1.00% 2015-01-01: Max 0.10% ECA NOx Limits
2011-01-01: Tier II 2016-01-01: Tier III EU Sulphur Directive 2055/33/EC
2010-01-01: Max 0.1% at berth Turkey Sulphur Regulation
2012-01-01: Max 0.1% at berth California Air Resources Board Sulphur in fuel limits (24nm from coast)
2009-07-01: Max 1.5% MGO, or 0.5% MDO 2012-08-01: Max 1.0% MGO or 0.5% MDO 2014-01-01: Max 0.1% MGO/MDO Global Greenhouse Gas Regulations
2013-01-01: Energy Efficiency Design Index (EEDI) for new buildings 2013-01-01: Ship Energy Efficiency Management Plan (SEEMP) for all vessels Global Sulphur Limits
2012-01-01: Max 3.50% 2020-01-01* (OR 2025): Max 0.50% * subject to feasibility review in 2018
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WWWORLD 1 2013 17
Special report shipping & marine ENVIRONMENT
ECAS ➜➜An ECA (emission control area) is designated to
reduce harmful emissions from the burning of bunker, primarily SOx but also NOx and PM ➜➜The Baltic Sea became the world’s first ECA (SOx only), effective from 2006 ➜➜The next ECA came in 2007: the North Sea and the English Channel ➜➜US and Canadian coastal waters were declared ECAS this year ➜➜Other nations, i.e. Japan, Singapore and Australia, have also signalled the introduction of ECAS
Dramatic changes ahead – and they’re coming fast The introduction of emission control areas (ECAS) will change world shipping, with huge consequences for ship owners that don’t adapt and comply. Text: Einar Chr Erlingsen
slo, Norway: For the very first
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time, international shipping is facing the combination of low rates and high oil prices. Although the price of oil is expected to remain at today’s level of USD 100-120 per barrel in the foreseeable future, the bunker price is expected to skyrocket by perhaps as much as 50 per cent within the next three years. This has to do with the expanding ECAS (emission control areas), covering ever-larger areas, with strict regulations of SOx (sulphur oxide) and NOx (nitrogen oxide) emissions from the burning of bunker. A forerunner, the European Union (EU) declared a maximum SOx emission level of 1.0% in its ECAS, staring with the Baltic Sea back in 2006. Other coastal states are following suit. The International Maritime Organisation (IMO) under its MARPOL convention has limited the global emissions of SOx to 3.5 per cent, down from 5 per cent just a few years ago. The EU, the US and Canada go much further: no more than 0.5 per cent SOx emissions in their designated ECAS by 2015, and in all European waters by 2020 – regardless of what the rest of the world decides.
Analyst broker: Øivind Munthe-Kaas follows the bunker market on his screen. Timing is everything in this highly volatile market. (Photo: Arild S. Johannessen) 18 WWWORLD 1 2013
Huge consequences. ‘This signals dramatic consequences for those who haven’t started to adapt, and they are coming fast,’ says Wilhelmsen Marine Fuels analyst broker Øivind Munthe-Kaas, adding that bunker normally represents from 50 to 70 per cent of a ship’s total operating costs. Already, ship owners are paying through the nose for low sulphur bunkers whenever they are operating in designated ECAS: the extra costs on normal bunker price (around 600 USD/tonne) are in the range of 50 USD
‘To comply with the regulations, bunker buyers will increasingly have to look for alternatives such as MGO (marine gas oil) or LNG (liquid natural gas). As for LNG, the challenge we will all have to face is: where can we get it? Bunker operation: Two Wallenius Wilhelmsen vessels, MVs Parsifal and Torrens The infrastructure during a recent bunkering operation in Antwerp, Belgium. The bunker is supplied by is just not there yet, Aegean, one of the port’s main suppliers. (Photo: Alec Sansen) and will demand enormous restruc(Europe) to 200 USD (Panama) and up to 300 turing and investments in refineries and ports. USD on the US West Coast, equalling a 50 per While for MGO, the main challenge will be cent increase! price, as ship owners will have to compete for ‘The cost of bunker has really been too low a product already in short supply,’ says Øivind until now. This has to do with bunker (residue Munte-Kaas. fuel oil) being a rest product from refineries. With the new regulations, this will no longer The future winners. What ship owners be the case,’ says Munthe-Kaas. are best suited to survive in this competition? There are basically three methods to reduce Further reductions ahead. ‘As opposed harmful emissions from a ship: to car engines, ship machinery has really ➜➜By installing exhaust gas scrubbers not developed much during the last decades. ➜➜By switching to marine gas oil While a car today typically burns between 50 ➜➜By speed reduction and 70 per cent less fuel than 20 years ago, the reduction for ship engines is only in the area ‘The winners will be the ones that invest in of 5-10 per cent. This is a situation that should scrubbers and fuel saving activities, perhaps not continue,’ says Munthe-Kaas. through a combination of two or all three A scarce commodity today, low sulphur methods,’ says Øivind Munthe-Kaas. bunker is expected to lose its significance by The ECAS regulations will perhaps encour2015, when maximum SOx emission in the age other significant changes as well: a larger, European and North American ECAS will but slower world fleet. The best way to lower be reduced to 0.5 per cent, and 0.1 per cent bunker burning is beyond doubt by lowering while in an EU ECA port. By then, low sulphur operating speed, thus reducing emissions bunker will simply no longer be an option. dramatically. WWWORLD 1 2013 19
Special report shipping & marine ENVIRONMENT
A great potential for energy saving The environment will be the main winner from this year’s Energy Efficiency Competition. The five winning (two from WW vessels) entries will all be implemented on pilot ships during 2013. Text: Elsa Naumann slo, Norway: This year’s competi-
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tion attracted 36 persons/teams who submitted 43 entries in total. Captain Filip Svensson, vice president marine operations of WWASA and one of the competition judges is quite impressed by the high level among the winners: ‘We did not find it right to declare one overall winner, as all the five entries plus the three runners up all have the potential of saving large quantities of fuel,’ says Captain Svensson. He finds the number of entries “satisfactory”, but hopes that there will be even more participants in next years competition.
The winners: MV Tysla - Eldar Danielsen
Optimizing the output of the steam turbo generator: A constructive and well-documented suggestion, optimizing the output of the turbo generator and thus less need for effect of the shaft generator. Even though it’s only applicable to MKV vessels the savings are substantial. MV Toscana – Sarvesh Almeida
Filip Svensson, vice president marine operations in Wilh. Wilhelmsen ASA was one of the judges in this year’s Energy Efficiency Competition. Overall 45 entries was submitted to the contest. 20 WWWORLD 1 2013
Installing motions sensors on light fixtures in accommodation and in cargo holds: Two constructive and well documented suggestions, savings at sea and in port as lighting based on demand, total savings pending on scope but as
Second engineer Eldar Danielsen on board MV Tysla (picture) was one of the winners in the Energy Efficiency Competition 2012 for his proposal of optimizing the output of the steam turbo generator. it’s applicable for all vessels the total savings will still be substantial. MV Aida – Ingvar Persson
Improved lube oil system: A constructive and well-documented suggestion, optimizing the way lube treatment plant and associated pumps are utilized. Minor savings, but as it’s applicable for almost all vessels the total saving will still be substantial. MV Isolde – Mats Høgblom
Installing motions sensors on light fixtures in accommodation: Identical to below entry, comment applies to both. The four above entries share the advantage of limited cost and time for implementation.
fewer engine room fans need to be run. High implementation cost overweighed by potential savings. Though not applicable to the entire fleet, this implementation applies to several vessels and new buildings. The five winning suggestions will be implemented on pilot vessels within WW and OW fleets in 2013. Total price money of USD 32,106 will be shared among the five winners with a smaller amount to the three runners-ups: ➜➜MV Fidelio – Torsten Bengtsson: Shaft generator vs. auxiliary engine use calculator. ➜➜Wallenius Korea Site Office: Reduction of power consumption by exchanging heat medium for accommodation air supply. ➜➜MV Figaro – Gert Gustavsson: Reducing friction in engines by use of additives.
MV Isolde – Mats Høgblom:
Natural air supply to main engine turbocharger: A constructive and well-documented suggestion, major savings at sea and in port as
We congratulate winners and runners-ups, and look forward to next year’s Energy Efficiency Competition. WWWORLD 1 2013 21
Special report shipping & marine ENVIRONMENT
WILHELMSEN CHEMICALS Other products
Marine chemicals are not the only products made by WiC. The factory also produces a wide range of brand products for the leisure craft and car markets, mainly in Scandinavia.
Market leader in marine chemicals Every second ocean going ship in the world receives its marine chemicals from Wilhelmsen Chemicals and its 104 highly committed employees.
Old and new boss: Managing director Terje Nygaard (to the left) will be retiring early in 2013 and will be succeeded by Thorstein Medhus.
Automation: Most work processes are performed by robots.
Text: Einar Chr Erlingsen Photos: Eric Johannessen Products for the world: Factory worker Per Harald Braseth was tapping Nalfleet engine water treatment during our visit. ønsberg, Norway: Located in the
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middle of a residential area, with lobster fishermen baiting their pots just a stone’s throw away, Wilhelmsen Chemicals (WiC) exceeds every environmental requirement. It is from these idyllic surroundings that more than half of the world’s oceangoing vessels are supplied with the necessary marine chemicals: for fuel treatment, cleaning and maintenance, water treatment and bio chemicals, some 125 products in all. In every port. Every day dozens of trucks
loaded with products under the brand names Unitor and Nalfleet leave the factory, destined for the nearby port of Larvik. From there they are shipped to some 50 locations around the world. The main locations are Rotterdam, Houston, Singapore and Dubai, where the chemicals are delivered through WiC’s owner company Wilhelmsen Ships Services’ (WSS) international network. All told, WSS serves 22 WWWORLD 1 2013
some 2 400 ports in 125 countries. This is also an impressive logistic operation. ‘Add to this an innovative and dedicated production and research staff, a commitment to being a proactive partner to our customers, and high quality environmentally adapted products, and we’re getting close to our formula of how to become a world leader in marine chemicals,’ says WiC managing director Terje Nygaard. New service. WiC introduced a new service
to its customers earlier this year: water analysis. By sending samples from their boiler water systems or diesel engine cooling water they can check the condition of their systems and receive recommendations for improvements by using chemicals. WiC naturally complies to the standards laid down in ISO 9001 and ISO 14001 certifications, and through research and improvements its products have become “greener” every year.
New services: Chemical engineer Sølvi Baarnes and her laboratory colleagues test water samples received from ships taking advantage of the new water analysis service offer.
A steady stream:Every day, dozens of trucks carrying marine chemicals bound for the world leave Wilhelmsen Chemicals. WWWORLD 1 2013 23
Special report shipping & marine ENVIRONMENT
YARWIL ➜➜Established in 2007 as a 50/50 joint venture of
Yara and Wilhelmsen Maritime Services.
➜➜Ambitions: Pioneering in green maritime
industry by providing emission reduction technology
Preparing for the boom The future looks very green and bright for Yarwil. In 2016, IMO’s NOx control requirements will enter into force to reduce polluting air emissions from ship engines. Text: Elizabeth S Lingjærde
Ready for the sales boom: Managing director Kai Låtun (left), sales manager Hanne Lundgreen, business manager chemicals Vibeke Østlyngen, and technical director Stein Løvskar.
«Yarwil is connecting Yara’s world leading production of urea and technology expertise with the global market and sales network of Wilhelmsen Maritime Services» Kai Låtun, managing director of Yarwil
slo, Norway: Just learn the name
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NOxCare at once. By using a high purity urea water solution, up to 95% of the poisonous NOx emissions are converted into harmless nitrogen and water. The whole operation is done with Yarwil's NOxCare Marine solution, which is based on SCR (Selective Catalytic Reduction) technology with unmatched levels of quality. The NOxCare 40 urea solution is sprayed into the exhaust gas upstream the catalyst and vaporizes inside the injection pipe, where it's converted to ammonia. The ammonia mixes with the exhaust gas and reacts with the NOx molecules on the catalyst surface forming harmless nitrogen gas (N2) and water (H2O). The better of two trades. As land based
industry and road transport have reduced their emissions, and global trade has grown in scale and volume, shipping's share of emissions to air is becoming significant, and public concern has led to ongoing political pressure to reduce it. This led to the establishment of Yarwil in 2008, which is a 50/50 joint venture of fertilizer giant Yara and Wilhelmsen Maritime Services.. “Yarwil is connecting Yara’s world leading production of urea and technology expertise with the global market and sales network of Wilhelmsen Maritime Services (WMS),” explains Kai Låtun, managing director of Yarwil. The unique joint venture is the first, and so far the biggest, supplier to offer the maritime industry a complete solution for reducing exhaust gas emissions of nitrogen oxides (NOx) from ships. 24 WWWORLD 1 2013
“So far, most of our international customers are seismic- and supply vessels to the environmental conscious oil industry. Many of them are based in remote areas. We have had orders serving up to 2,000 ton of urea in one delivery (from Korea to serve vessels operating on a Shell project in the Bering Strait by the use of one product carrier as a floating storage). It was an exciting order, and we executed it to the full satisfaction of all,’ Låtun says. The urea supply myth. The Shell order became a milestone for Yarwil. It was the proof that they could supply urea no matter the size or location. This was reported to the NOx review on which the IMO will confirm their deadline for enforcing the latest requirements to be in effect from 1 January 2016 (known as IMO Tier III NOx emissions abatement requirements). ‘Unfortunately a myth in the shipping industry says there might not be enough urea to provide every ship with the necessary amount when required,’ says Låtun. The myth is far from reality. In fact, the shipping industry accounts for a minimal share of global urea demand. More than 90% of world production of urea is destined for use as a nitrogen-release fertilizer. The power intensive industries, like electricity plants based on coal, and the automotive industry, are other huge demanders. ‘The shipping industry is quite small in this perspective, and there is no need to worry about supply,’ Låtun states. Last minute investments. So far they have
delivered around 150 SCR systems including
Less pollution: New IMO regulations demand a reduction in NOx emissions from ships globally of 20% by 2011 and 80% by 2016. The Selective Catalytic Reduction method (SCR) provided by Yarwil is the only known and proven technology that can reach the 2016 target of 80%.
urea, but the market will be rising rapidly to over 2000 systems per year, once every new ship built will be required to install SCR technology when sailing in emission controlled areas (ECAs). “Our sales have not been as good as expected since the financial crisis hit the market and made even the smallest costs threaten the competitive margins. A lot of shipping
companies are therefore reluctant to invest in environmental technology; even though they know the need to do so is quickly approaching. They are waiting until the last minute, since very few can afford to be the first one out to increase their costs, even though we’re talking relatively small investments. At the moment we see a growth of merely 20% per year, but expect sales to boom once the new
IMO regulations, MEPC 58, comes into force from 2016,” says Låtun. ‘Yarwil is unique in the way that we have access to vast interdisciplinary resources in both the Wilhelmsen Group and Yara. The SCR technology is just the beginning of what we see may become a whole new business area for a greener maritime future,’ Låtun concludes with a promising smile. WWWORLD 1 2013 25
Ww profile
female WW’s first
captain Taking over as Master on MV Tarago in July was the fulfilment of a lifelong ambition for Renate B Karlsen and the beginning of a new chapter in our 151 year-long company history. Text and photo: Einar Chr Erlingsen
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ønsberg, Norway: ‘I’ve always had
a fascination for ships,’ says Renate Karlsen (48). ‘When my girl friends drew dolls or made doll clothes, I always drew boats; Viking ships, fishing boats, coastal steamers.’ So it seems appropriate that our conversation takes place by a real Viking ship, Tønsberg’s new pride the Saga Oseberg. This is an accurate replica of the Viking ship that was excavated just outside town in 1904. The new ship was launched on 20 June this year, just a few days before Renate Karlsen took command of WW’s Mark IV ro/ro ship MV Tarago. ‘I think I prefer the Tarago’s bridge,’ she says as she tries her hand on the Viking ship’s side rudder. She can almost claim “Viking blood” herself, with 11 generations of sea pilots, captains and other seafarers in the Oslo fjord area among her ancestors. One of them 26
“Viking blood”: After returning home from her first voyage as master, Renate Karlsen tries her hand on the rudder of the Saga Oseberg, her home town Tønsberg’s new viking ship.
was a coal stoker on the Færder lighthouse at a rocky island at the entrance to the Oslo fjord when it was first lit in 1697.
ing to take on female cadets for the very first time for the sailing season 1983/84. Renate applied – and was enlisted.
Not doctor material. Renate, however,
From engine room to bridge. Since then,
grew up in Tromsø in Northern Norway. By then, the family had moved into more landbased occupations. She was more or less expected to seek an academic career, perhaps in medicine. ‘I signed up at the University of Tromsø, but spent my first hours at the information meeting drawing ships,’ she says with a little smile. ‘So I soon understood that this was the wrong path for me. I think I have too much seawater in my veins, I just don’t fit into a land-based life.’ As happens to many of us, Renate’s fate was partly decided by chance: like when she read that the Norwegian training vessel, the fullrigged sailing ship Christian Radich was go-
one step has followed the other, but by no means a straight path. Always a practical person, Renate first started out on a career in the engine room. When she had reached the level of third engineer she decided that enough was enough, and changed course to become a deck officer. After finishing the required exams she joined a Norwegian America Line (NAL) ship as third officer in 1995. One year later, NAL was incorporated into WW, and she has remained true to her company ever since. The knitting master. Much of Renate’s time has been spent on car carriers, but her first command Tarago is a ro/ro vessel, mainly carrying high & heavy cargo in the Around-
the-World trade. This suits her perfectly: ‘It’s no nine-to-five life at sea. There is always something happening, unexpected events to handle, or problems to solve. With our new work schedule of two months on/ two off it is no longer a challenge to establish a good life on shore between trips. Since I moved to Tønsberg, much of my spare time has been spent maintaining my house and garden, or I listen to an audio book through earphones while knitting. I don’t travel much, I satisfy that need while on board.’ Talking about knitting: it’s not unusual for Renate to practice her hobby on board as well. Not exactly a common sight among masters, it has on occasion turned a few heads. ‘I can’t say that I had any problems asserting my authority during my first voyage as master,’ she says. ‘I have a fine team on board, many of whom I have worked with before. After 15 years as chief officer there were some
new tasks for me to learn, but with good assistance from my shipmates I learnt to cope soon enough.’ ‘Admittedly there have been a few surprised faces, especially in Korea and China, when local pilots entered the ship, looked right through me and asked for the captain.’ Once this was sorted out, things proceeded just fine. Several of the visitors even asked to be photographed with the new captain. Equal opportunities. Renate Karlsen has
never been a front fighter for female rights. ‘My only concern is that people should be treated equally. I’m absolutely against female quotation and feel that people should be judged by their actions, rather than by who they are. ‘I can’t deny that I felt a bit anxious when I first went on board the Tarago as master. Among other things, it meant the fulfilment of a long held ambition. And it tasted good!’
WW logistics
With WW all the way
2 2
– a logistics master class operation
THE CHALLENGE: To transport an extremely volatile cargo consisting of a 60 metre long rocket with fuel across half the globe, and then to launch it into the atmosphere from a purpose-built launch platform. This is one of the most complex logistics operations in the world. WW has been involved in every step from transportation to launch for the last 13 years.
1 3
2
4 5
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Text: Einar Chr Erlingsen Photos: Sea Launch
Rocket fuel produced in several locations deep inside Russia (including Angarsk close to the border of Mongolia) is transported by rail in containers to ports Kotka (Baltic Sea) or Octyabresk (the Ukraine), then by sea to the Sea Launch Home Base in Long Beach, California. Empty containers are returned via the same routes.
Step no.
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The rocket fuel is transported in its “dry” stage, meaning that the pressure inside the containers must not sink under 1 atmosphere. There are strict regulations regarding container cleaning, pressure and temperature. WW’s role: Wilhelmsen Ships Service through its local offices is responsible for the transportation from fuel refinery to Long Beach, including container inspection, freight forwarding, off- and on-loading, customs clearance etc. WSS’ logistics project manager is present at critical stages of the operation.
28 WWWORLD 1 2013
The long sea transport begins in the Ukraine via the Black Sea and Straits of Bosporus across the Mediterranean past Gibraltar, across the Atlantic Ocean, through the Panama Canal and finally to Long Beach, California.
Step no. The Zenit rocket, consisting of rocket engines and 3rd stage from RSC Energia, Russia and the 1st and 2nd rocket stages from Yuzhnoye/Yushmas, Ukraine is transported by rail to Octyabresk where the rocket stages are loaded on board specialised ro/ ro carrier MV Condock IV.
Step no.
2
WW’s role: Overall logistics responsibility by Wilhelmsen Ships Service/project logistics. Port services by Wilhelmsen Ships Service, Ukraine.
3
WW’s role: MV Condock IV is chartered
by Wilhelmsen Ships Service. WSS’ offices in Turkey, Gibraltar, Panama and Long Beach supply all the necessary port and transfer services. The ship will bunker in Gibraltar, bunker being supplied through Wilhelmsen Marine Fuels. Wilhelmsen Insurance Service provides the necessary insurance for the entire operation.
Ready for the final stage: from Long Beach to the Pacific launch site at the equator off Hawaii. The voyage takes approximately one week. The launch takes place when weather conditions are favourable, after which the command ship and platform start on their return voyage to Long Beach to be readied for their next mission.
Step no. The rocket parts have arrived at Long Beach and are unloaded at the Sea Launch Home Base, where they are inspected and readied for the next step. Empty rocket frames, fuel containers and other equipment are cleared for the return voyage to Ukraine.
Step no.
4
WW’s role: Two Wilhelmsen Ship
Management (WSM) employees plus WSS logistics project manager follows the unloading/ loading process on base. WSM and Barber Moss Ship Management (BMM) are jointly responsible for keeping crane and other necessary technical loading equipment in full operative order.
Ro/Ro vessel Condock IV, launch platform Odyssey and Sea Launch Commander in Long Beach. The rocket and satellite are first transferred from the Ro/Ro ship onto the command vessel where they are assembled and readied before being transferred to the launch platform.
Step no.
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WW’s role: Apart from unloading, WW plays no part in this stage of the operation.
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WW’s role: Barber Moss Ship Management
(BMM) has full technical management of both command vessel and launch platform, including maritime operations, maintenance, accounting etc. Total maritime crew for both vessels: 75, all supplied by Wilhelmsen Ship Management Norway. BMM is a 50/50 joint venture between Moss Maritime and WSM Norway.
WWWORLD 1 2013 29
WW logistics Sea Launch ➜➜A sea-based spacecraft launch service for
commercial payloads ➜➜Launch vehicle: Zenit 3SL rockets, built by Yuzhnoye Design Bureau, the Ukraine ➜➜Launch system consisting of command vessel Sea Launch Commander and launch platform Odyssey ➜➜Rockets can be fired from the optimum position on the earth’s surface, considerably increasing payload capacity and reducing launch costs ➜➜Established in 1995 as a consortium of four companies from Norway, Russia, the Ukraine and the United States. ➜➜Present owners: Energia Overseas Limited, a Switzerland-based, Russian owned corporation ➜➜First launch: 27 March, 1999 ➜➜So far: 31 launches performed
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AND THEN: LAUNCH! After a journey that has taken around 100 days, from deep inside Russia, across the Black Sea, the Mediterranean, Atlantic Ocean, through the Panama Canal and then halfway across the Pacific, the rocket is launched into its orbit from the Odyssey platform.
the final step
A communication satellite is launched into geostationary orbit from the Odyssey platform in the equatorial Pacific Ocean. The first steps leading to the launch were taken half a world away, in the middle of Russia and the Ukraine.
WWWORLD 1 2013 31
WW logistics
Project logistics
Project logistics is basically handling of logistics operations with a complexity that requires a dedicated project organization during planning and execution. Typically, project logistics involve heavy and oversize cargo and/or operations in challenging geographical areas where the port and transport infrastructure is weak. Wilhelmsen Ships Service - Region Europe offers project logistics within three main areas: ➜➜Energy and offshore: wind turbines, generators,
oversized equipment and machinery
➜➜Maritime related: sea transport of heavy and
oversize equipment and modules including the Sea Launch project ➜➜Defence: Multimodal transport of military equipment, logistics support for naval operations etc. Key customers are commercial and governmental cargo owners.
PROJECT LOGISTICS:
profitable growth for new target area At the beginning of 2012 project logistics was declared a focus target area for Wilhelmsen Ships Service – Region Europe. The preliminary results are good. Text and photo: Einar Chr Erlingsen
«Few can compete with our extensive global network.»
slo, Norway: With the establish-
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ment of the Wilhelmsen Ships Service (WSS) European project logistics team in early 2012 came the ambition to double both top and bottom line figures by mid 2013. The results have been good: after eleven months of operation, in November this year, the revenues in Region Europe had doubled compared to the same period in 2011. Behind this growth is a dedicated WSS network effort with excellent teaming and collaboration across country and regional boundaries. Such cooperation is vital as a smooth project operation is dependent on joint planning and coordination between all involved WSS offices. A project logistics operation could involve loading the cargo in a European inland site with final delivery in a Middle East location. Project logistics director Vidar Hole, WSS Region Europe comments: ‘Our growth is currently driven by our offices in Norway and Portugal, supported by good activity in the Netherlands and Poland. We have seen the project logistics business growing steadily since January. Despite the tough financial challenges in Southern Europe our region keeps increasing the overall revenues in this segment. This shows an ability within our network to adapt to changing markets,’ Hole says. Based on trust. ‘Project logistics is very
much a trust based business where we sell our project management skills and local
32 WWWORLD 1 2013
The framework for the new drive in project logistics in Wilhelmsen Ships Service, was laid down in a kick-off meeting in January 2012.
“LOCAL PRESENCE: A “hands-on” attitude combined with local knowledge are unique selling points, says project logistics director Vidar Hole, WSS Region Europe. (Photo: Kaia Means) operational capabilities to handle all stages of what is frequently very complex transport and support operations,’ says team leader Vidar Hole. We typically handle the entire transport chain from end to end, involving both surface, sea and air transport if necessary. Thus, the customers put a lot of responsibility on our shoulders. ‘Few can compete with our extensive global network. Local knowledge to handle demanding transport operations and a “hands on” attitude are unique selling points, as is our close cooperation with our ship operating companies and many other parts of the WW Group,’ adds Hole. ‘Within the group we have competence and operational capabilities in practically speaking all aspects of complex logistics. By connecting the right resources under a solid project management, we can
offer tailor-made and excellent logistics solutions to almost any customer needs.’ “Without Wilhelmsen we could not have fulfilled our mission,” was the comment from the Norwegian Chief of Defence, General Arne Sunde, after we had completed a 6-month comprehensive logistics support operation in the Mediterranean and the Indian Ocean for a Royal Norwegian Navy frigate. This operation, which involved ocean transport, storage, port services, bunkering and other logistics activities, demonstrated the strength of the combined capabilities in the group when logistics activities are planned and supervised under a competent project management. Although the creation of a committed team signals an increased focus on the business area, project logistics already plays an important role within WW. In WSS alone, maritime logistics (including project logistics and more traditional transport activities) is one of the largest contributors to our net results. Maritime logistics has traditionally been very strong in WSS Region AMB (Africa, Middle East and Black Sea). Region Europe and Region AMB now cooperate closely to develop joint business opportunities.
Challenging cargo: The transportation of windmill turbines represents challenges during every stage of the operation. The photo shows windmill blades being unloaded during a heavy snowfall in Narvik in Northern Norway. The blades can be up to 50 meters long and are highly fragile. (Photo: Bjørn Palmork, WSS) WWWORLD 1 2013 33
WW logistics
The hands on project manager
people&places «Investing in good health while on board is another side to Safety at sea.»
‘It was my big mouth that really got me into this,’ says captain Johan Ostnes. He has been very much a hands on project manager for WW’s Sea Launch involvement since its early days.
captain Leonardo P Candilosas Jr.
Text: Einar Chr Erlingsen slo, Norway: Not one who leaves
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unfinished business behind, at 69 captain Johan Ostnes is still very much a kingpin in the Sea Launch logistics operation. A WW veteran since 1963, he first heard about the Sea Launch project during a dinner with some Norwegian businessmen in Vyborg, Russia back in 1997, and about the plans to ship commercial rockets through St. Petersburg in the Baltic Sea to Long Beach, California. ‘What clowns suggested this,’ I said. ‘Don’t they realise that the Baltic Sea is frozen over by thick ice for almost half a year?’ He was contacted by a representative of the “clowns” a few days later. What did he mean? Would he care to elaborate? He hurriedly collected some weather and ice statistics from the meteorological institute in Finland and held a presentation upon his return to Norway the very next day. The next questions he had to answer, was: could he suggest a different route out of Russia? And could he find a suitable vessel? That was really the beginning of WW’s now 15 years long involvement with the Sea Launch logistics.
A man and his ship: Truck repairman Antonio V Aguyen with a wall painting of his ship MV Tiger. Hands on: ‘Don’t leave, I’m not finished with you yet,’ captain Johan Ostnes signals to a local employee. As project manager he is never far away at critical stages of the complex Sea Launch logistics operation. (Photo: Private)
A truck repair man and an artist! Antonio V Aguyen grew up in the northern province of The Philippines on the island of Luzon named Isabela. He is also a truck repairman on board MV Tiger – and an artist! This is his story.
joined MV Tiger on 25 February 2012
I
as an engine fitter, and I was fortunate enough to be promoted this June to truck repairman. I am just a simple hardworking man doing and performing my responsibilities on board to the best of my abilities. My tasks are welding, fabricating some parts in the lathe machine and mostly main-
34 WWWORLD 1 2013
Healthy as can be! This sporty crew is to be found on board MV Asian Vision, under the command of captain Leonardo P Candilosas Jr. The captain and crew believe in the slogan “healthy crew – healthy ship!” ‘Investing in good health while on board is another side to Safety at sea,’ says the captain. The crew on board the vessel are employed by Wilhelmsen Ship Management.
A surprise visit from an external inspector
A Black Sea veteran. Prior to this captain
Ostnes had been among the pioneers that had opened up the Black Sea area for Wilhelmsen Ships Service operations after the fall of the iron curtain. The local knowledge gained then and the WSS offices in the region proved to be very useful. As did his knowledge of local mentality and from working with people from different cultures, attained through a long life working first on ships and later in locations like Dubai, Bangkok, Istanbul, Helsinki and Los Angeles. For it was by no means easy for people from as different cultures as Russia, Ukraine and the
tenance repair of the hydraulic equipment onboard. During my free time, I like to play basketball, dance, and sing karaoke in the evenings. But my first interest is painting. I have made different canvases, wall paintings and human portraits, including some from my ship. I have been sailing with Wilhelmsen Ship Management for more than 22 years now. I have learnt a lot of good things from my shipmates and officers. The life of a seaman is really a circle of time. We care, we pray, we work hard and we make sacrifices for the future of our families, no matter how far we are from our loved ones.
«Don’t they realise that the Baltic Sea is frozen over by thick ice for almost half a year?» United States to work together. “Initially there was much distrust and many misunderstandings. Things did just not mean the same thing among people from different backgrounds. We Norwegians were consid-
ered as “neutrals”, that helped a lot,’ he says. Very much a hands on man then, and very much now. Unexpected events and problems will always happen during a logistics operation as complex as this one. When they do, Johan Ostnes will be there, trying to solve them. ‘Before mobile phones and satellite communications, seafarers had to face the challenges as the appeared, without help from shore. That experience serves me well even now,’ captain Ostnes says.
This photo was sent us by Rizwan Kapadi, master on board MV Themis Leader. The little bird appeared to be inspecting the ship’s logbook in the Pacific Ocean. The photo was taken by C/O Neil Eschavia.
Logbook inspection: This little visitor really touched a seaman’s heart.
At sea/off Japan: I was on watch from 04000800 while passing east of Hokkaido, on voyage from Long Beach to Hitachi. After six days of rough weather it had now calmed down, so I kept the bridge door open to get some sunshine. Soon I detected a tiny house sparrow peeping inside the bridge door, before jumping in on tiny
legs. Taking a small round flying around it settled on the chart table, where she was looking at the chart and logbook for a while, as if she was inspecting the records. Finally, she seemed to be satisfied with the logbook entries and took another flying inspection. Before we thought of giving her food, she left for open seas, probably to inspect some other vessel, I believe. Although a short visit, it was also a very touching one. Since she left, she has been identified by Frode M Haukedal as a brambling, latin name fringilla montifringilla.
WWWORLD 1 2013 35
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
Renovation in Greenfields
Our contribution to the children’s village in Greenfields will provide the village with a much needed facelift, ensuring that the children will have a safe home and a brighter future. Text: Bjørg Ekornrud Photo: SOS Children’s Villages
Key to success: : New general manager WSS Iraq and Jordan Per Kristian Knutsen surrounded by his staff. ‘They are the key to our success,’ he says enthusiastically.
India: The children’s village in Greenfields
natural light. The children and the mothers was built in 1971 and is located in the Delhi are very satisfied with the transformation. suburb of Faridabad. Over the years, 650 SOS-mother Asha is pleased about the imchildren have been given a good start to their provement to her house. ‘When it was raining lives in Greenfields. At present, 210 children before, we sometimes had to place buckets on live in the village, 65 boys and 145 girls. The the floor because of the leakage from the roof. village has 20 family houses and a social That’s not necessary anymore,’ she says. centre with both a kindergarten and a family programme. In addition, there is a youth facility for 40 teenagers who are «When it was raining before, preparing themselves for a life outside we sometimes had to place buckets on the floor the village. A much needed facelift. Since the
Gathering in Iraq All personnel from WSS Basra office and some of their colleagues from the Bagdad office recently met the new general manager Iraq and Jordan, Per Kristian Knutsen, for a teambuilding session in a challenging market.
because of the leakage from the roof. That’s not necessary anymore»
Basra, Iraq: After the collapse of the dictatorship of Saddam Hussein in 2003 following the invasion of British and US forces, the Iraq-war officially ended in December 2011. However, stability is still not reached and the country is struggling to regain security and suffers from ad-hoc terrorist attacks. Despite this, more and more companies are focusing on establishing a presence in Iraq as the prospects for growth, in particular within the oil industry, are promising.
establishment, almost no renovation has been done in the village and the houses SOS-mother Asha are in very poor condition. The roofs are leaking and the walls are cracking. Doors and windows have to be changed and Greenfields also has a family programme for families in the local community surthe electrical installations need upgrading. The much needed facelift started in August rounding the village, intended to give children 2011 and so far 12 family houses and one house from disadvantaged families better care and for employees have been renovated. The condiprotection. The family programme is currently tion of the houses is highly improved and the helping 222 children and 42 parents towards houses have become more spacious with more a brighter future.
From Ma'am to Mummy One of the SOS mothers in the children’s village in Bataan is Mary Grace, or Mummy Pangging as the children call her. Every day she gives the children in her family house care, comfort, safety and love. Bataan, Philippines: Two of the children, Parane
and Ergina, are siblings. Mary Grace remembers well when they first came to the village in 2009:
36 WWWORLD 1 2013
‘The first days are always a bit special. The children called me Ma’am instead of Mummy. They used to live in an orphanage where the grownups were addressed as Ma’am, so for them this was natural. But little by little, as they became used to the new environment, found friends and started school, they became more confident. One day, Parane suddenly said “bye Mummy”, when she left for school in the morning. For me that was a good and strong moment.’ When eight-year-old Isko came to the village, Mary Grace soon noticed that he had behavioural problems. ‘At first, I assumed that he didn’t feel comfortable as
this was a new and unknown situation for him. However, I understood quickly that there had to be more to this. He had traumatising experiences that he was really struggling with. I used a lot of time together with Isko. We went for long walks and we talked and talked. After three months, I began to see a change in his behaviour. He has changed his attitude toward rules and routines, and now he even helps his younger brothers and sisters with their homework. To see that the children are healthy and that they are doing fine at school is what matters!’
Mummy Pangging: Here she is surrounded by her beloved children at the SOS Children’s Village in Bataan.
Wilhelmsen in Iraq. WW has been present in Iraq since 2003. Håkon Vik was instrumental in setting up the company together with local partners and Captain Hameed Mazin. The latter is currently country manager and has been with the Wilhelmsen group for a number of years. Per Kristian Knutsen has recently taken over the GM hat for Iraq and Jordan. As a start, he has used the time to meet colleagues, customers, partners and our people in ports and offices across Iraq. Last, but not least just getting the understanding
needed to run our operation in Iraq has required a lot. ‘Taking all the uncertainties and the current business environment into consideration, it is really impressive to see what our people on the ground are doing,’ says Per Kristian. ‘Doing business in Iraq is not like running a supermarket in Europe and it really tells us that Wilhelmsen is a truly global company.’ The key to success. From
being a small office in 2003, WSS Iraq has grown to be a solid and well performing country in the AMB region and a significant contributor to WSS Middle East. 2013 will be a special year for WSS Iraq and will mark the first 10 years of operation. ‘We wouldn’t be able to perform like we are doing, without hard work from all employees. It is impressive to reckon that the work force has been quite stable for the last years, implying that WSS is a preferred employer in Iraq. Customers are important, but our people on the ground are the key to success!’ says Per Kristian Knutsen. WWWORLD 1 2013 37
key objectives 2013
people&places
This is WWASA Wilh. Wilhelmsen ASA (WWASA) is through its operating companies - Wallenius Wilhelmsen Logistics, EUKOR Car Carriers and American Shipping and Logistics - the world leading operator within the rolling cargo segment. It is the only listed company in its niche, and offers global car and high and heavy cargo customers sea transportation and integrated logistics solutions from factory to dealer. Wilh. Wilhelmsen ASA is owned by 72.6% by Wilh. Wilhelmsen Holding ASA, the rest is owned by external shareholders. WWASA is listed on the Oslo Stock Exchange.
Talabot’s bell uncovered WW’s MV Talabot played a proud role in Malta’s war history. Its ship bell reappeared earlier this year, just in time for the Malta-held naming ceremony of our new ship MV Titania. Text: Einar Chr Erlingsen Photo: Knut L Arnesen
Found again: The bell from our heroic ship MV Talabot.
Modern, green and profitable A modernized fleet, energy- and environmental efficiency and increased profitability. These are the key objectives for Wilh. Wilhelmsen ASA in 2013.
ittoriosa, Malta: Ask any Maltese school child, and she or
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he will probably know the war history of MV Talabot. Under almost continuous attacks from German and Italian war planes, the population of Malta was on the edge of starvation by 1942, running short of almost all supplies, including ammunition and airplane fuel for its defenders. In early 1942, it was decided to make one last attempt to relieve Malta. MV Talabot became part of the convoy NW10 from Alexandria in Egypt, laden with a highly explosive cargo of ammunition, bombs and torpedoes. While unloading on the third day in Malta’s Grand Harbour, Talabot was hit by a bomb from one of the 300 Stuka bombers from Sicily. The bomb exploded in the engine room and the ship caught fire and sank after most of its cargo had been unloaded. (For the full story, see WW World’s December issue, 2009).
Text: Arild S Johannessen
Searching for the bell. But this was not the end of the story. When it was decided to hold the name-giving ceremony for our new ship MV Titania in Malta, general manager Knut L Arnesen at Wilhelmsen Lines Malta and Karl Magro from Wilhelmsen Ships Service tried to find out what had happened to Talabot’s bell. The hunt finally led them to the archives of the Malta Maritime Museum. After a comprehensive brush-up the bell was exhibited at the museum, just in time for a visit from Mr. Wilhelm Wilhelmsen, who was more than pleased to see this very unique souvenir from Malta’s glorious past.
Learn more Do you want to learn more about Malta’s dramatic and unusal history? Log on to www.heritagemalta.org
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WW history: With the bell from Talabot in the background, Mr. Wilhelm Wilhelmsen (to the left) has just presented our 150 years anniversary history book to curator Liam Gauchi from The Malta Maritime Museum.
Mark V: The ro-ro carrier MV Tysla was one of the newbuildings that entered Wilh. Wilhelmsen ASA’s fleet in 2012. The fleet, purpose-built to transport cars and high and heavy cargo represented 23% of the global marked measured in CEUs (car equivalent unit) in September 2012. WWWORLD 1 2013 39
key objectives 2013
«A modern fleet has high priority for WWASA. New and modern vessels offer reduced fuel consumption, lower emissions to air and improved cargo capacity compared to the former generations.»
slo, Norway: President and CEO
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Jan Eyvin Wang is satisfied with both operations and financial results at the end of 2012. Adjusted for sales profit of shares in Hyundai Glovis, Wilh. Wilhelmsen ASA (WWASA) reported an operating profit of USD 112 million dollars in the third quarter and USD 712 million in total income in the same period 2012. ‘We’ve had exceptionally solid cargo volumes in the first half of 2012, with a slight decrease in the third quarter. For 2013 we estimate a more normal situation. Our foundation trades are quite stable at very healthy levels,’ says Wang to WW World. A modern fleet. At the end of September
2012, the operating companies in the WWASA group controlled a total of 141 vessels. Four new vessels have been added to Wilhelmsen’s own account this year: The Mark V vessel MV Tysla in January, the LCTCs (Large Car and Truck Carriers) MV Titania in March, MV Tulane in June and MV Tongala in September. For 2013 and 2014 a total of nine newbuilds will enter service for either EUKOR or Wallenius Wilhelmsen Logistics. EUKOR will also take delivery of a new vessel at the end of 2012. The HERO-project (high efficiency ro-ro vessels) is also well in progress. Tenders have already been sent to several shipyards. The next generation HERO-vessels will have a post-panamax design and thus be wider than the current carriers. Two of the vessels already ordered for EUKOR are also post-panamax, enabling larger cargo capacity. ‘A modern fleet has high priority for WWASA. New and modern vessels offer reduced fuel consumption, lower emissions to air and improved cargo capacity compared to the former generations,’ says Jan Eyvin Wang. The fleet, purpose-built to transport cars 40 WWWORLD 1 2013
President and CEO Jan Eyvin Wang in Wilh. Wilhelmsen ASA. (Photo: Kaia Means) and high and heavy, cargo represented 23% of the global marked measured in CEUs (car equivalent unit) in September 2012. The fleet’s capacity was 868 000 CEU. Environmental efficiency. Energy and environmental efficiency is the second key objective for WWASA in 2013. Mr. Wang explains: ‘Reducing our environmental footprint as much as possible is a win-win situation. We want to be an environmental frontrunner, employing the latest available technology. This year, we had the second energy efficiency competition for the WWL fleet, and next year we will be installing the world’s largest multi stream scrubber on board MV Tarago in order to reduce sulphur and particulates from the exhaust. This is a pilot we are excited to see in
operation. We are also installing ballast water systems to reduce emissions of hazardous microorganisms in the water.’ Another brand new initiative is the joint venture Wilh. Wilhelmsen ASA and partner Wallenius Marine AB have entered into with the Norwegian meteorological company, StormGeo AS, to develop a range of innovative software solutions for the shipping industry: ‘By combining Wilhelmsen’s and Wallenius’ vast experience from operating vessels with StormGeo’s meteorological and ship specific data models, we will contribute to tailoring a software solution for the shipping industry. This unique system will give us as owners as well as our commercial operator’s decisive tools to optimize voyages with fuel-efficient operations being one of the key benefits. The innovative solution will also contribute to safer operations for crew and vessels operating on the seven seas,’ says Jan Eyvin Wang. StormGeo will hold 50% of the new venture with the remaining 50% split equally between the two other partners. The name of the joint company will be Shippersys AB. A strong balance sheet. The third strate-
gic objective for WWASA in 2013 is to build a strong balance sheet (sum of assets and capital). After Q3 2012 the company had total assets of MUSD 3511, up from MUSD 2984 in the same period in 2011. ‘Building a solid balance sheet is important for three reasons: shipping is capital intensive, WWASA aims to pay regular dividends to its share holders and a certain cash reserve is needed in order to weather market fluctuations. I would also emphasise that these objectives are in full alignment with our partner and operating companies. To build a solid financial buffer will be even more important with the new newbuilding program being initiated,’ says Jan Eyvin Wang.
#1 PRIORITY IN 2013 FOR WILHELMSEN MARITIME SERVICES:
Maintain profitability WMS’ main challenge as 2013 approaches is to maintain an operating profit margin of 9%. Maintaining the required level of profitability will be accomplished by a series of measures. Text: Mette U Bakke, senior vice president and CFO, Wilhelmsen Maritime Services (With the courtesy of WMS News) slo, Norway: During the four-year
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period from 2007 to 2010, the WMS group achieved its financial goals every year. Then in 2011 a combination of political turmoil, natural catastrophes, currency fluctuations, rising costs and unused capacity caused our operating profit margin to fall from its normal 9% level to under 5%. Our focus areas that year became what we called the four “C’s”: Customers, Cost, Cash and Choice. Profit improvement programs were initiated by Wilhelmsen Technical Solutions and Wilhelmsen Ships Service the same year. The focus on regaining profitability was successful, and by Q2 2012 our operating profit margin was back on track in the 9% range. Top line sales growth is achieved by introducing new or improved products, increasing sales activity and growing through “bolt-on” acquisitions and partnerships. A bolt-on acquisition is one that complements the existing business well without extensive formal integration. Improve business efficiency. We will con-
tinue to focus on business efficiency in 2013. This will be done through a combination of better supply chain management, improved cost efficiency, right sizing and improved management of our business application portfolio. Our operating companies differ from each
Everyone counts: Whether you work in sales, customer service or a support function, your contribution truly counts. The photo shows Wilhelmsen Ships Service employees delivering chemicals to a vessel in port.
Strategy discussions: More than 400 managers have participated in AOP workshops (Annual Operating Plan), where future objectives and strategy are discussed and aligned. This photo is from the WSS Asia Pacific session. other with respect to age, segments, market share, products etc., but all have benefited from efficient operations and all are committed to further improvement. Develop our competence. To a large de-
gree, how well we understand and can provide what the customers want will determine our long-term success. Having the right compe-
tence at the right time is therefore crucial. In 2013 we will continue to focus on creating a performance-based culture, supported by tools for measuring performance. Training programs will be offered to help people develop needed skills, while our succession planning program will offer career development opportunities and ensure management continuity. WWWORLD 1 2013 41
WW AT SEA
From paper pusher
to sailor boy 19 August 2012 was the big day to get a taste of what a sailor’s life is like. After being a maritime trainee with Wilh. Wilhelmsen (WW) for two years I was (finally) granted the opportunity to feel some steel under my feet. Text and photos: Jon Halvard B Olsen
pain: Her name was MV Tijuca,
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230 meters long and built in 2008. I arrived in Barcelona on a warm summer day. I had learned that I’d better arrive a day in advance of the vessel’s ETA in case she got in early and left me behind. Considering it gave me some extra days in sunny Barcelona, this was a piece of advice I liked. As the original ETA was early morning on the 20th I got up early, only to learn that ETA was delayed to the afternoon due to congestion in port. 1645 I was in place in the port, where I could see that MV Tijuca had already berthed. Finally on board. Seeing her in real life
was stunning. With a deck capacity of 8000 car units, equivalent to more than 9 football fields, it was a challenge even to get the whole vessel into one photo without disturbing port activity. After being dropped off by the agent 42 WWWORLD 1 2013
Moment to remember: ‘Thank you, everyone who made it possible for me to spend ten great days on board MV Ticjuca,’ says Jon Halvard B Olsen. I walked the main ramp onboard, not knowing that passengers were to use the gangway (which I know now). After signing in I was escorted up to the lobby area on the 13th deck by one of the crew members and introduced to the officers (all Norwegian on this vessel). All were very welcoming, but also very unsure of my
purpose onboard. So I tried to explain that I was basically there to learn and observe. Shortly after meeting the officers I was assigned the pilot cabin. Some claim that the pilot cabin’s standard is below average, but my home for the next 10 days was actually very impressive. Facilities included an ensuite bathroom with a shower, a large desk and bed as well as a sofa and flat screen TV. In retrospect it is slightly ironic that however nice the cabin was, it was also where I spent the least time during my stay onboard. Safety first! Stepping out of the cabin the
chief officer approached me to inform me about safety issues on board. He said that safety is constantly in focus, so a safety round was necessary. I was given a boiler suit, helmet, safety shoes/glasses and earplugs, before we walked around the vessel and I learned about safety equipment, escape doors, emergency routines and evacuation procedures. WWWORLD 1 2013 43
WW AT SEA
«i discovered that the saying “WW, black and blue, nothing to eat and plenty to do” now could be changed to “WW, black and blue, plenty to eat and plenty to do”!»
As the vessel was getting ready to depart I moved up the bridge to observe how the pilot communicated with the captain to steer the ship safely out of Barcelona’s narrow port. My first observation was the peace and quiet on the bridge. Orders were short and precise and I could enjoy the 360 degrees view from 40 meters above sea level. It was easy to understand how somebody can spend day in and day out up on the bridge and it didn’t take long until I understood that this was something I would like, too. Life onboard. The crew consisted of about
25 people and even though they have their individual routines and duties, this is a schedule that I quickly adapted to: 0730: Breakfast 1000: Coffee break 1230: Lunch 1500: Coffee break 1730 : Dinner
When at sea this schedule was standard, but during days with port calls some of these times changed. My routines varied and depended on the vessel’s schedule as well as the daily routines of others onboard. I was up and ready to involve myself from 0800 every morning and normally ended my working day by watching the sunset from the bridge. I could go on forever in detail about how my days onboard were, but then I would have to write a small book. Instead I would like to point out some of my observations and what I learned. Bridge and engine room. From the bridge
I could observe watch routines, navigation (steering and planning), radio communication routines and equipment, communication with port authorities, vessel handling in locks, cooperation with pilots, ballast water routines and planning. My training lesson also took me to the engine room, where I learnt to recognize all machinery and its purpose, following reporting routines, special operations (removing the generator for the auxiliary engine), maintenance (the best part was examining the scavenge air receiver getting my hands/ body dirty), and bunkering routines.
Rookie sailor: Jon Halvard B Olsen (to the left) giving the crew a hand carrying mats in port.
Deck and cargo.
In port: MV Tijuca in Bremerhaven, Germany. 44 WWWORLD 1 2013
tion. And while in ports I got an insight into loading and unloading operations, including lashing of cargo, stowage planning, safety procedures, ventilation routines, driving the ramp, lifting and lowering of decks, and activity on mooring stations. Not all work. But life on board also has its
more relaxed moments, some of which I will remember for a long time. Singing karaoke with the Filipino crew represents one such moment, as does eating the Norwegian specialty “pinnekjøtt” (dried, smoked and salted sheep’s ribs) to celebrate the chief engineer’s birthday. Another highlight was watching the 2012 Olympic opening ceremony with my shipmate Sparky and the captain late at night. Going for a swim in the pool as we sailed along the Spanish coast represented another highlight, as did observing well oiled Germans and wooden sailboats during “Bremerhaven Festwoche”. Other lessons learned. Perhaps some
of the most useful learning I received on board was not directly related to my work assignments. You have plenty of time also for observations and discussions, such as: ➜➜Discussing vessel designs and technical development of the WW fleet. ➜➜Observing the change of officers (and learn how two different management policies both work in practice). ➜➜Talking to the crew about their experience with WW. ➜➜Discovering that the saying “WW, black and blue, nothing to eat and plenty to do” now could be changed to “WW, black and blue, plenty to eat and plenty to do”! ➜➜Sailing through the Gibraltar strait at night avoiding crashing into small fishing vessel. Thank you! After ten days we arrived in
Zeebrugge where the time had come for my discharge. Now back at the WW head office I would like to take this opportunity to thank everyone onboard MV Tijuca for their hospitality and willingness to teach me. I would also like to thank, WSM, WWL, WWH and WW ASA for their contribution. A special thank you goes to vice president technical and vice president marine operations in WW ASA, Per Brinchmann and captain Filip Svensson for opening doors and giving me a memorable experience.
«It was easy to understand how somebody can spend day in and day out up on the bridge.»
On deck I learnt about maintenance routines (painting, greasing equipment, cleaning, overhauling and welding), safety and emergency routines and equipment, piracy routines and prepara-
WWWORLD 1 2013 45
EUKOR CAR CARRIERS
Celebrating 10 years in business
crisis. This slim organization still maintains its key characteristics; organizational empowerment and fast decision-making. EUKOR is a no frills company – Business comes first,’ says Mr. Galtung.
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Joint success. As with the Korean soci-
ety in general, its nation’s top automotive manufacturers – Hyundai Motor Company and Kia Motors Corporation – have changed As EUKOR Car Carriers Inc. is lining up for a grand dramatically over the past years, to the extent of becoming one of the largest automotive celebration this December, its president and CEO groups. Sjur Galtung is planning to step down from the company manufacturing Almost the same can be said about EUKOR, when comparing today’s status with the early that he has been instrumental in developing. At the age beginnings. The asset to debt ratio when first of 70, he will retire at the end of the year. established was burdening, and the fleet was tired and non-homogeneous. Driven by a Text: Atle Mikkelsen Photos: EUKOR desire to succeed, EUKOR has developed into one of the leading car carriers globally eoul, Korea: Mr. Sjur Galtung, days - to supplementing its extensive trading together with supportive shareholders and a current President & CEO of EUKOR, network with important third party cargo. solid cargo base through the success of HMC and KMC has been part of the company’s develAs a reference, non-HMC/KMC cargo only opment even before the inception as constituted about 21% of EUKOR’s annual ‘Together with focus and growth on third cargo volume back in 2003, while it today lead-negotiator for WW during the acquisiparty business came network expansion represents about 60% of its total volume of and overseas offices. These have played an tion process. As WW’s deputy group CEO at that time, his many visits to Korea were more than 4.2 million CEU’s. important role in maintaining global coverinstrumental in creating the trust and respect ‘Needless to say, the significant cargo inage - while keeping control in Seoul. Perhaps crease demanded a necessary between the partners, and during most noteworthy is the presence of the process he even learnt to appreciate the larger fleet. Morning «We have no plans to fermented Korean national dish kimshi. Concert has been ease off on the extensive EUKOR in China, joined by many sisA true veteran, he was on the company both through own ofgrowth that we have Board until he took over the helm as CEO ters since her maiden fices and a stake with experienced during our in 2010, giving him an insight into EUKOR’s voyage, both fully key partner CINKO. development that only a few share. The owned and chartered. first 10 years» We would also like story started in 2002, when partners Wilh. to highlight WWL’s EUKOR now controls Wilhelmsen, Wallenius, Hyundai Motor extensive network of commercial contacts one of the largest fleets in its segment, an achievement of which we are justly proud,’ Company and Kia Motor Corporation (HMC/ when it comes to the Europe outbound trade, KMC) acquired the car carrier division of says Mr. Galtung. which has been a key to maintaining successHyundai Merchant Marine. ful customer relations within the group,’ says Flexibility and hard work. When asked Mr. Galtung. A turning point. ‘One of my strongest about EUKOR’s success factors, Mr. Galtung memories from those 10 years was the conis quick to highlight the flexible fleet together Looking to China. Looking ahead, it might tracting of M/V Morning Concert in 2005,’ with the competent and hard-working organijust be China that will be EUKOR’s next Mr. Galtung says. ‘This was the first of two zation: key target market together with the existing deliveries from Hyundai Heavy Industries; ‘In my view, these are two crucial factors Korean business. Chinese imports are already which have established EUKOR’s leading a purpose-built vessel for long term charter booming, but perhaps the yet-to-date unreposition in the market. In addition to the with purchase option to EUKOR, and owned alized potential of export will prove vital in owners’ solid backing in the fleet developby WW. Considering the debt-to-assets ratio the years to come, despite troublesome times and the tough financial covenants for EUKOR, ment,’ he says. in parts of the world. EUKOR is in any case this really signifies one of the groundbreaking ‘The Korean society is a dynamic one, ready to take on the challenge: a fact that is reflected in the flexibility and achievements.’ Mr. Galtung closes off: ‘We have great faith adaptation our EUKOR staff has endured In fact the years from 2004 to 2008 became in our proven business model, and we have no from ever-changing market conditions to an era of expansion for EUKOR – largely plans to ease off on the extensive growth that cultural challenges with Scandinavian mabased on the extension of the Ocean Carrier we have experienced during our first 10 years. Contract with HMC and KMC in 2007. With jority shareholders. This is nothing short of We certainly hope our anniversary will be an a solid backbone cargo-base at hand, EUKOR impressive. Likewise, it was EUKOR’s flexible event to remember, as well as a happening to initiated a transition from being a pure infleet and resilient organization that became strengthen ties with owners, partners and dustrial carrier - a legacy from the HMM our smooth escape from the post Lehman customers to ensure future success.’
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1: Signing ceremony: Companies from three countries joined forces to create EUKOR, based on Hyundai Merchant Marine’s (HMM) car carrying division. From the left: CarlJohan Hagman, EUKOR’s first president and CEO, Mr. C S Jang, president HMM (today president NYK Korea), and Mr. Sjur Galtung.
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46 WWWORLD 1 2013
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2: New Year’s ritual: Jan-Eyvin Wang performing this important ritual the traditional Korean way. Mr. Wang was EUKOR’s second president and CEO and was followed by Sjur Galtung in 2009. 3: Team players: Koreans and Scandinavians have formed a strong team feeling in EUKOR, covering both business and sports. 4: Historic moment: The delivery of MV Morning Concert was a turning point in EUKOR’s history. Among the guests at the occasion were ship owner Wilhelm Wilhelmsen and his wife Ninni (no. 3 and 4 from the left). 4
WWWORLD 1 2013 47
Ww profile Team Traaholt: A keen football player himself, Petter Traaholt is also coach during weekends for his two sons Kristoffer (12) and Kristian (9). (Photo: Private)
Always the team player He enjoys competition and likes to win, but always as part of a team. Meet Petter Traaholt, president of Wilhelmsen Technical Solutions, a company that headed right into a market storm when it was established two years ago. Text: Einar Chr Erlingsen Photo: Kaia Means
slo, Norway: Some people make
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you wonder: where do they find the time for everything? A glance at a typical weekly schedule for WTS president Petter Traaholt (49) almost takes your breath away: Usually, his week starts around 04 AM on Monday morning at home in Karlstad, Sweden when he starts his 220 km commute to the Oslo office. While on the road he will take a number of phone calls to WTS offices or clients in Asia, thus taking advantage of the time difference. When not on the phone, he plans for the week ahead, or relaxes to music favourites like Dire Straits, Abba or Queen. He might drop by for an early meeting at the WTS offices in Gothenburg or Uddevalla (both Sweden) on the way. If not, he’ll arrive at his Oslo office well ahead of both the morning rush hour and most of his colleagues. Normally a management meeting will follow, before he starts on his designated tasks for the week ahead. Quite often he will fly off to some international location during the week. When not working or travelling, Traaholt will find the time to go for a run or for a round of floor ball with colleagues at the WW head office, just a short distance from his Oslo apartment. Late evenings are frequently spent catching up with paperwork and in telephone meetings with colleagues in the US, once more taking advantage of the time difference. Late Thursday, he’ll start the long drive back to Sweden, again doing some work while driving. You get a lot of time to work and reflect while driving some 40 000 km per year! 48 WWWORLD 1 2013
Petter Traaholt ➜➜Born in Fredrikstad, Norway 1963 ➜➜President Wilhelmsen Technical Solutions
since 2010 ➜➜Married to Malin, four children ➜➜Lives in Karlstad, Sweden ➜➜2004-2010: senior vice president and CFO, Wilhelmsen Maritime Services ➜➜Former positions: vice president and CFO, ASSA ABLOY Hospitality, Oslo (2001-2004), executive vice president and CFO Boliden Ltd, Toronto and Stockholm (1996-2001), several positions in Trelleborg Finance BV, Brussels (1990-1996). ➜➜Education: Bachelor of science in business administration and economics from Gothenburg School of Economics (1985-1989)
Humour and achievements. Don’t make
the mistake of thinking that Petter Traaholt spends his weekends with his feet up! Married
to Swedish Malin and father of two boys and two girls, ages between 16 and 9, he tries to phone them most days for a chat. He takes great part and pride in their leisure activities, ranging from sailing and football to floor ball (a team game similar to ice hockey with no skates and tackling) to the extent that he is their football coach in summer and floor ball coach in winter season. ‘Being the coach has its advantages,’ he says with a laugh. ‘It’s up to me to decide the training hours. So in this case, it’s during the weekend.’ ‘A schedule like yours takes most people’s breath away. So what makes you tick? ‘Several things, really. First, there has to be lots of humour! These days, with markets being what they are, humour tends to be both grim and sardonic. I am also inspired by good colleagues and their achievements, and by people in general; the dynamics, customers and competitors. And, of course, success is always inspiring. We do not always reach our goals, but if we succeed more than half the time, we’re better than average. These days most of our competitors are losing money on their operations, but we are not.’ A tough start. ‘You became president
of WTS in late 2010 with the merger of Wilhelmsen Ships Equipment (WSE) and Wilhelmsen Marine Engineering (WME). Then the market more or less collapsed. That must have been a tough start?’ ‘Times were quite challenging already, and we couldn’t really see that we had the manage-
WWWORLD 1 2013 49
Ww profile Likes and dislikes Happy: ‘When my children succeed at their
activities, and when we reach our targets at work. Some of my best moments are when my whole family is skiing together off-piste down a powder slope.’
Best book: ‘Former Chrysler president Lee
Iacocca’s book “An autobiography” as well as Benjamin Gilad’s “Business war games”. It’s only when you understand your adversary’s thoughts and priorities that you can beat him.’ Favourite technical gadget:‘ I don’t
really have one, except my iPhone – with music from Spotify.’
Favourite equipment: ‘Without doubt
Fun at work: Not usually an office activity, Petter Traaholt and WTS vice president Mark Germain take a break with a game of floor ball in honour of the photographer.
my sports gear; the sailboats, football shoes, Telemark skies. I’m not really a technical person, but can be quite advanced when it comes to sporting equipment.’ Website: ‘Some newspapers, mainly Dagens Industri (Swedish business paper).’ Film/TV: ‘I watch almost every movie going on
my many flights. No favourite films, but actors like Meryl Street and Harrison Ford normally deliver the goods. Not much time for TV, except the news sometimes.’
Management team: Petter Traaholt in discussion with senior vice president Industry Segments Peter Stockley and vice president sales Mark Germain at Wilhelmsen Technical Solutions’ head office.
Holiday: ‘Our family went to Hawaii last summer; that was fantastic. Plus the US in general, and our mountain cottage in Trysil, Norway.’
«Ballast water had become a tumour, devouring time, human resources and money» ment and the company structure we needed to tackle the change. We had two companies, one with a strong marketing position, the other strong on engineering, documentation and project management. So it really made sense to merge the two. Just one example: WSE had a strong presence at ship yards, WME with local owners. Most owners operate from Europe, while most of the yards are in Asia. In combination with challenges and opportunities related to the upcoming ballast water market with new technology, it really made sense to join forces,’ says Petter Traaholt. ‘Even so, revenue has been considerably reduced?’ ‘That has to do with the cyclicality in the newbuild market. Contracting of new vessels is considerably down and we’ve lost around 40 per cent of the two companies’ combined revenues compared to 2008. Nevertheless, we have done much better in the offshore newbuild and marine aftermarket and even some places increased our market shares. Despite the cyclicality in business like ours, difficult times are no excuse for not making money. It’s really just a question of adapting to the market, and being willing to cut your losses. However, in a downturn spiral it is difficult 50 WWWORLD 1 2013
to judge how much and for how long we are going to be there and thus adjustments may have to be repeated several times, which may be tough on moral.’ Exit ballast water? ‘You had to write off
an investment in the range of 15 MUSD in a system for ballast water treatment earlier this year. That must have been quite a set-back?’ ‘Yes, and it was also a very tough decision to make. There is no doubt in my mind that ballast water treatment represents an enormous growth potential, it is a “must have” technology for ship owners. With new technology there are a lot of uncertainties, even so, I didn’t really get the answers I requested from our original team. It was a lot of “relax, we’ll fix it”. So I appointed a new team and gave them six months to come up with the answers to some crucial questions: Was the technology good enough? Does our partner have the necessary technological and financial muscle? The answer was: we can succeed, with time, investments and under certain conditions. Our technology provider did not see eye-toeye with us on the challenges and soon after went into insolvency proceedings. Time to
market for entrepreneurs is crucial and that left us with no other option than to cut our losses. It was a major setback, but also a necessity. Ballast water had become a tumour for the organisation, devouring time, human resources and money.’ ‘So no more ballast water treatment for WTS?’ ‘I won’t say that. We’re following the trends and have learnt our lesson. If we choose to return to this market it will be as a representative for or a partner with a strong foothold. If we choose the latter it will most likely be in a separate business entity, similar to the Yarwil model.’ ‘So what are the targets for WTS in the coming years?’ ‘They are quite down to earth, really. We know where we are, and will develop from there. We cannot fight gravity in the cyclicality of the business, but we can position us for taking the market when it returns. By 2016 we aim at being back to 2008 level in revenues and profit, even if the market has shrunk considerably. This can only be achieved by increasing our market share, especially where we’re strong already. We want to be the number 1 leader in safety systems and their develop-
Hobbies: ‘Skiing, sailing, many types of
sports.’
Dislikes: ‘Running, although I do a fair bit of it. Music from my iPhone makes it just about bearable.’
“Best ever”: ‘Our family went to Hawaii last summer; that was fantastic,’ says Petter Traaholt, here with Kristian, Emma, Hanna, Malin and Kristoffer. (Photo: Private)
ment. HVAC is another area, where Korea dominates today. We will take part in the ongoing market consolidation, based on our strong position high end markets in offshore and marine, the ferries and cruise.’ No. 2 employee. ‘You were employee no. 2
when Wilhelmsen Maritime Services was established in 2004, as senior vice president and CFO for president Dag Schjerven. You both had a background in land-based industries. Was it difficult to adjust to a maritime business environment?’ ‘No, not really. The industrial side of shipping is not so different from other industries. I had an international background from working with companies in Sweden, Belgium and Canada. That was an advantage. The dy-
namics might be different, but the processes are similar. So my challenge was to learn the shipping lingo, get to know the people and the competitors.’ WMS started as a merger between the Barwil ship agencies and the ship management operations in Barber. There weren’t a lot of synergies between them, so from the beginning it felt like rolling a huge snowball uphill. The turning point came with the acquisition of Unitor. That gave us the industrial muscle we needed to develop WMS into what is today a real shaper of the maritime industry.’ Always a team player. ‘Would you call
yourself an offensive player?’ ‘I’m not overly offensive in team sports. As a business leader I believe in evolution, rather
Can’t stand: ‘Dishonesty and hidden motives. I’m pretty straight forward myself, and intensely dislike if people operate with a hidden agenda.’
than revolution. I’m pretty sure that I’m not the ideal boss in a boom market; I’m a bit too careful to cut corners and take out the extra profit. Rather, I believe in what the Swedish call “ordning och reda” – order and system. My strength lies in change management. It’s in human nature to oppose change. It means that it can be a very lonely job to be a leader when things need to change – unless you’re able to build a good team around you.’ ‘Always the team player?’ ‘I suppose so. From my days as a handball player I believe in systems, and understand why each player must play her or his part. If not, the system will fail. It’s the same thing in business. We might have differing opinions, but once the targets are set there can be no more discussions.’ WWWORLD 1 2013 51
WILHELMSEN MARINE FUELS
➜➜Changed name from Wilhelmsen Premier Marine
Fuels on 1 November 2012
➜➜Owned 100 per cent by Wilhelmsen Maritime
Services (WMS)
➜➜Main office in Oslo (eight employees) three
employees in London/Dartford and Singapore offices respectively
3.7 million tons delivered (2011)
To walk the extra mile
Total world market:
300 million tons ➜➜Largest bunker port: Singapore (43 million
tons/year)
Success as a bunker broker is linked to a willingness to try to achieve the “impossible” on behalf of the clients. This, plus timing, trust and market knowledge, are the main reasons behind Wilhelmsen Marine Fuel’s success.
➜➜WMF deliveries Singapore: 1.3 million tons ➜➜Deliveries in 350 ports ➜➜Typical trading volumes: from 20 tons (MGO) up
to 5.000 tons bunker oil
Text: Einar Chr Erlingsen Photos: Don Pyle
4.000
slo, Norway: ‘Are my cheeks
transactions per year
➜➜1/3 of total volume to in-house customers ➜➜2/3 of volume to external clients (mainly spot)
Female broker: Maj Britt Mark Andersen has just celebrated her first 25 years as a bunker broker. She is known as a “terrier” who never gives up.
Wilhelmsen Marine Fuels: The staff at the Oslo headquarters are (from the left) Nick Bavridge, Viggo Berggren, Kjersti Holm, Maj Britt Mark Andersen, Kim André Vannebo, Øivind Munthe-Kaas, Lars Brustad and general manager Rune G Kongstein. 52 WWWORLD 1 2013
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blushing? They normally do on a busy day,’ says bunker broker and trader Maj Britt Mark Andersen with a bright smile. A spot trader in the global bunker market, hectic days are the rule, especially during the hours when the Far Eastern markets are open. Trading rates are highly influenced by the Singapore market in particular, the largest in the world. In a market characterised by a huge number of small brokers, Wilhelmsen Marine Fuels (WMF) with its 1 per cent market share is a major player. It’s a global market that never rests: ‘You’re never really off the job as a broker,’ Andersen reflects. ‘My mobile is always on, clients can call on Christmas eve, on our Constitution Day or in the middle of the night, by phone, text message or e-mail. And they all believe that performing “magic” is daily fare.’ A veteran’s view. Wilhelmsen Marine Fuels goes back to the mid 1990’s, but WW has always traded bunker, ever since the days of sails and coal. By far the veteran with 39 years in the trade, senior broker Nick Bavridge has seen many changes. A major change has to do with bunker quality: ’It has improved immensely,’ he says. ’35-40 years ago some suppliers could deliver bunker that was close to liquid asphalt, with the result that ship engines frequently broke down, sometimes resulting in great damage and even shipwrecking. Thankfully, this doesn’t happen much anymore, although there are still some suppliers that we avoid, based on bad experiences.’
Knowledge and trust. ‘Being a bunker broker is really a question of market intelligence – and trust,’ says WMF general manager Rune G Kongstein. ‘The more you know about a market and its players, the greater the chance of success.’ Which by no means is easy. The market is influenced by more or less unpredictable conditions like bunker supply, availability and oil price. Add to this unexpected events, especially political ones, and the impact on bunker prices can be dramatic. ‘Even on “normal” days, bunker rates are highly volatile. A quantity of bunker bought at the wrong moment can add thousands of dollars to your customers’ bill,’ says Rune G Kongstein. Nick Bavridge gives one example: ‘Last Friday I had a request for delivery a week later in Singapore. The bunker price went up by 13 dollars during the day, while it fell 17 dollars during Monday. In other words: a price difference of 30 dollars during just two trading days,’ Nick says. ‘Most of our business is done in the spot market for a fixed fee, typically one USD per tonne. We can also negotiate term contracts on behalf of valued customers like Wallenius Wilhelmsen Logistics and EUKOR,’ says Rune G Kongstein. The extra mile. A typical spot market request arrives on the WMF’s brokers’ desk 7 – 10 days ahead of ETA. ‘That’s the ideal situation. It means that you can keep a cool head and wait for the best possible timing,’ says Maj Britt Mark Andersen. Known as a “terrier” in the market, she and her colleagues can sometimes work wonders even at very short notice:
‘Just today I received a request from one of our best clients, for delivery Singapore in just over two days. It’s really almost impossible, as bunker is frequently a short commodity in Singapore. The normal is at least one week’s notice. But I don’t like to give up on behalf of a client. So I decided yet once again to “walk the extra mile” in search of a supplier. I found him in the end!’
Bunker’s paradise Singapore is the largest bunkering port
in the world with more than 43 million metric tonnes of fuel delivered to the merchant fleet annually. Wilhelmsen Marine Fuels is represented in this important market by brokers Irene Neo and Øyvind H Størdal, plus accountant Htet Htet Aye. The Singapore office mainly serves customers outside the WW group with a focus on local operators, charterers and ship owners. Working in the same time zone as where the majority of bunker deliveries take place is a competitive advantage and gives the opportunity to know the local suppliers and be hands-on in any disputes. Even though credit conditions are challenging and freight rates depressing, the team is looking forward to 2013 with the ambition of getting more customers and growing the business – in bunker’s paradise.
WWWORLD 1 2013 53
Ww HR/OD
A LITTLE SURVEY=
A BIG DIFFERENCE It only takes 12 to 15 minutes to answer, but the WW Engagement Survey is a strategic tool that has the potential to make a difference to the bottom line. Text and photo: Kaia Means
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slo, Norway: ‘We are looking to
identify specific areas of improvement that have a proven impact on individual and organisational performance,’ says Head of people and process development Gry Brandsnes. The online WW Engagement Survey will do just that – as the answers are analysed to determine the connections between the levels of satisfaction reported and the most important ways to help people gain motivation. The 64 questions will consist of 32 generic ones – for example concerning daily work, immediate manager and senior management – and 32 questions that are specific to the WW Group. The interesting part of the analysis is that the results for general satisfaction are connected to the responses regarding specific areas with potential for improvement. Graphs show how motivated and aligned a group of employees is, and also what could increase motivation and alignment – focusing on the goal to have a performance-based culture at WW. Happy and healthy. ‘People are happier
and healthier when they know they’re doing a good job,’ says Jørn-Even Hanssen, Group vp human resources and organisational development. ‘People thrive on challenging work.’ Helping individual employees results in a better organisation. ‘An organisation needs momentum to move in the right direction – we need more people to be motivated and aligned with where we are going,’ says Hanssen. 54 WWWORLD 1 2013
The survey measures satisfaction, motivation, commitment and retention – and the total results signify total engagement. ‘It will give us much more time to follow up,’ says Brandsnes. The survey’s analysis function makes it much simpler than with previous surveys to see which activities, such as training, development etc, will be likely to make the greatest effect on the engagement of WW employees in various areas. ‘It provides information on what areas we should focus on, making sure that we don’t have to assume what we think will make improvements. It’s a web-based system that makes it simple for managers to find reports and plan follow-up actions.’ Anonymous. She emphasises that the
results of the WW Engagement Survey are kept entirely anonymous. This ensures that people can be completely honest when giving feedback about all aspects of their employment. ‘The anonymity is important, and will not be breached. The survey results are being handled externally, and we will not have ac-
cess to individual responses,’ says Brandsnes. The survey results and reports will only be available in departments with four or more employees who have answered the survey. Ennova, the external supplier of the survey, is handling all individual responses, and will provide WW with summarised statistics, charts, graphs and analyses. The upcoming soft launch of the survey will involve about 400 employees in various parts of the organisation: all of WW ASA, parts of Wilhelmsen Ships Service including Italy, Brazil, South Africa and Hong Kong, all of the Group Management Team and Wilhelmsen Technical Solutions in Norway (except Bergen). The global launch will happen in May 2013. It is intended as an annual survey, where the results can be benchmarked both with other companies, internally within WW, and as the survey is taken annually, the results can also be benchmarked with previous WW results. ‘WWH has worked closely with the business areas and the group management team to ensure that the survey supports our business needs,’ says Brandsnes.
How can we improve? ‘The results of our online Engagement Survey will help us to identify just that,’ say Gry Brandsnes and Jørn-Even Hanssen.
«WWH has worked closely with the business areas and the group management team to ensure that the survey supports our business needs» Gry Brandsnes, Head of people and process development WWWORLD 1 2013 55
Ww HR/OD
Name in the News
How have we performed in 2012? The Performance Appraisal (PA) is one of the best methods we have to align expectations of managers and employees alike. At its best, the PA can be a tool for development and for building a performance based culture.
increase we won’t be satisfied. Now it’s time for the remaining 20 percent to make sure they complete the process’, says Hanssen.
Text: Kaia Means
Learn from others. Managers are learning
slo, Norway: Last year 4,860 WW
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Through the HR system PeopleNet, managers and employees can download material after filling in the needed documents. ‘The main purpose of the PA is to create a two-way dialogue between the manager and the employee, and both are expected to prepare for the conversation,’ says Brandsnes. ‘It’s important to find the employees’ strengths and to help them fulfil their full potential,’ she says. PeopleNet.
how to give the most helpful feedback in a way that will bring out the best from their employees. In addition to PA workshops for managers in some regions focusing on how to give feedback, there is also a useful e-learning program available on the PA page on the intranet. There, in a matter of 15-20 minutes, you can watch several short video clips of simulated PAs. Afterwards, you are asked to think about the situations – the style, tone and the content of
Group employees completed the PA, and afterwards 418 were asked to complete a survey about it. The results show that the vast majority saw the benefits of the PA process, including the opportunity to discuss important issues that are perhaps not easy to bring up during daily work, and also the opportunity to discuss expectations from both sides in a straightforward manner. ‘It’s a structured conversation «It’s a structured about the most important subjects conversation about the most at the basis of what we are doing important subjects at the and achieving together,’ says Jørnbasis of what we are doing Even Hanssen, Group vp human and achieving together.» resources and organisational development. ‘It’s also a way to adjust expectations on both sides, and to give and the communication. By answering a short quiz, receive constructive feedback.’ you are led to think about the best approaches to the PA conversation. Hopefully, the exercise Core values. ‘It’s a good way to have diswill give managers more confidence to conduct cussions about the corporate values,’ says Gry the PA in a constructive manner. The PA survey shows that scores, on a scale Brandsnes, head of people and process develfrom one to six, rate the PA training received opment. A lot of people have communicated that the core values are an important part of at very close to five. This is a very positive avertheir day-to-day work,’ she says. age score. Regarding whether the objectives The way the PA’s are conducted is tied to of the PA were met, the scores were also on the strategy of the company. After a process of average very close to five. streamlining the PA in the entire WW Group In the survey, some of the respondents according to best practice since 2010, the commented that they will need further familsurvey results now offer the basis for further iarisation and training, Others spoke of the improvements in the process. delicate matter of giving critical feedback. One ‘More than 80 percent of the employees of the respondents wrote: “Managers will need completed the PA. It’s a good result, and to understand the value in honest feedback – since it’s the first year of the standardised and i.e. feeling comfortable to tell someone that streamlined PA we’re satisfied. But if it doesn’t they need to improve.” 56 WWWORLD 1 2013
The man in charge of 10 000 seafarers Two on Performance Appraisal Kenny Lee Wilhelmsen Ship Management, Kuala Lumpur, Malaysia PA is valuable because its objective is to provide employees with a formal channel to receive constructive feedback for personal development, an opportunity to discuss career goals and direction, provide managers with a tool to manage employee performance and develop employees in a systematic and focused way. In order to get most out of the process, the PA discussion must be done in an effective way and follow the fivestep COACH format: Create a positive climate, Obtain employee’s views, Add your views, give constructive feedback, Clarify and resolve disagreements, Help develop an action plan. Satheesh Pillai Wilhelmsen Ships Service, Dubai PA is one of our most important people processes. It gives an opportunity to the employee and manager to review and evaluate the achievements of the previous year and agree on the priorities for the subsequent year. I feel both the manager and the employee need to prepare well to have an effective PA meeting that will lead to professional development and ultimately contribute to achieving our goals and objectives of our annual operating plans. Not only will training needs be identified and addressed during a PA review, but new talents can be discovered as well.
Erik Toft is a man with a mission. In early 2012, he took the challenge to provide for the manning needs of Wilhelmsen Ship Management’s (WSM) 450 vessels as the company’s new vice president of marine personnel. Text and photo: Stacey Trodal
slo, Norway: In between coordinating the internal and external manning agencies, global training, crewing systems, Erik Toft is also responsible for the company’s crewing processes and industrial relations. He makes the job look easy.
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Focus on crew competence key. Toft
knows all too well the challenges the industry must tackle. “Recruiting and retaining sufficient numbers of skilled seafarers to staff and operate the global fleet is a concern. We’re also seeing a shortage of qualified and well - trained officers. This could have a dramatic impact even when considered from just one perspective – the safe operation of a vessel. Since some 80-90% of accidents can be related to human error, it is essential that seafarers be well-trained, able to follow orders, manage risks and solve problems,” says Toft. He adds, making a career at sea an attractive career path for young people is also challenging. “Separation from friends and family while at sea, the desire of the generation Y to be socially connected at all times and recent negative focus on shipping due to environmental issues and piracy are perceptions we need to change.” Even with the challenges, Toft believes that Wilhelmsen Ship Management’s marine personnel have a good level of competence. “Training has always been an important focus for the company. I believe this is one of the most important factors in giving Wilhelmsen Ship Management a positive advantage in the market and ensuring we have a world class crew. There have been cases of seafarers on their fifth sign-on making mistakes on simple operational tasks. Such incidents can be caused by fatigue or other
Quality counts: ‘Skilled and experienced crews are essential to the successful operation of today’s technologically advanced vessels,’ says Erik Toft, new vice president of marine personnel at Wilhelmsen Ship Management. reasons, but a seafarer must always have the right competence to perform his or her job under all conditions,” says Toft. Retaining the best. “The demand for
officers continues to outstrip supply. Our retention rate of global officers is 83%: 17% of our 4000 officers leave us every year. The cost of replacing an officer is around USD 14,300 (admin. costs, recruitment costs, supernumerary wages, travelling costs, flag state courses, familiarization at office etc.). Replacing 680 officers costs USD 10 million per year!,” says Toft. “We are already doing a lot in terms of
«Not everyone with a drivers’ license is a good driver» crew motivation through career development plans, training opportunities and benefits such as insurance coverage for crew and family members when they are on leave. However there are opportunities to do more and live up to our group vision to be the shapers of the maritime industry.” WWWORLD 1 2013 57
Ro-ro rodeo An example of winning teamwork
«The ro-rorodeo is the premier training event of its kind»
Text: Isabelle Kliger Photos: Bill McAllen (With the courtesy of Venture magazine)
altimore/the US: The roro rodeo is an annual event that brings the world leaders in rolling equipment to the Port of Baltimore to provide training for the port’s stevedores. Sponsored by the Steamship Trade Association of Baltimore and spearheaded by Wallenius Wilhelmsen Logistics (WWL), the event, just celebrated its 20th anniversary. This year, 16 manufacturers sent 42 technical representatives to provide two days of training in the latest manoeuvring, loading and lashing techniques for 200 longshoremen. ‘The entire port community comes together to support this event because quality is good business,’ says Captain Jonathan Streett, WWL cargo quality expert and co-chairman of the event.
B
The Caterpillar Motor Grader has 16 levers on the dashboard to control the belly blade in various positions. The blade is lowered onto the deck using rubber mats and stowed with chain lashings to ensure that the cargo is secure at sea.
The John Deere Grain Combine requires special driving techniques as it steers from the back wheels. It is very different to manoeuvre compared with a standard car or truck. 58 WWWORLD 1 2013
The Wirtgen Milling Machine is used to re-surface roads and runways. The milling that it grinds off the road is mixed with new material and re-used. This machine can be raised up and down on its hydraulic legs.
This ramp system simulates a Case Construction Rubber- Tracked Excavator crawling out of a ship. The boom needs to be raised and lowered to avoid striking the hydraulic lines into the ship’s overhead but, on the simulator, drivers will only lift up loose bamboo if they go too high.
JLG’s Aerial Boom Man Lifts are reaching new heights in Baltimore. The drivers are becoming very comfortable manoeuvring these complex units up and down the ramps and across the decks of WWL’s ships.
These drivers are learning about the safety features on a JLG Aerial Man Lift. This machine can be operated in the air using the basket controls, or on the ground using the controls on its side. WWWORLD 1 2013 59
WW History
A proud and tragic history When Nazi Germany invaded Norway on 9 April 1940, 44 of the company’s 48 vessels were in international waters or in Allied ports. All ships were immediately placed at the disposal of the Allies for the rest of the war. However, the price the company and its employees had to pay was high. ➜➜52 of the company’s sailors were killed during the war ➜➜Four office workers fell in combat ➜➜22 of the company’s ships were sunk during the war years ➜➜The names of these heroes are found on a memorial plaque at WW’s headquarters.
70 years
since dramatic torpedo attack
This October it was exactly 70 years since WW’s M/S Trafalgar was torpedoed in the Atlantic Ocean. One of the crew on board was Svend Mørkved (1923-1993) from Tønsberg. Here is the crew’s story. Text: Espen Jørgensen The predators of the ocean: The German submarines were effective weapons for Nazi Germany during WW II. A huge number of commercial vessels were sunk. t sea/the Atlantic Ocean: The
A Survived the war drama: Svend Mørkved from Tønsberg at the age of 15. Just four years later he was torpedoed by a German submarine in the Atlantic Ocean while on board the MS Trafalgar. (Photo: Private)
torpedo attack resulted in an 11-day long dramatic journey in the lifeboat, with very strict rationing. After ten days at sea the lifeboat reached the French island of La Désirade in the Caribbean, but had to leave again as it was under the control of the French Vichy regime. The Vichy regime was the name given to the German-friendly government under the leadership of marshal Philippe Pétain who controlled the southern parts of France as well as the French colonies during World War II. Severe explosions. Jan Henrik Mørkved,
the son of Svend Mørkved, says that the entire crew of M/S Trafalgar survived, but it was very dramatic, especially for the steward. “Father told me that the ship careened strongly after the first explosion and some extremely heavy cupboards shifted and blocked the doorway. The steward couldn’t get out. Luckily the submarine sent out another missile and ship careened the other direction. The cupboards shifted again and the steward got out.” The crew made it to the lifeboats, but it was a tight fit since two of the lifeboats had been destroyed in the explosions. The only being there was no room for was the ship dog, a huge St. Bernhard that the crew had to surrender to its unhappy fate. Svend Mørkved told an American newspaper at the time that the submarine attacked in twilight and the ship sank only 20 minutes later. It was submarine U-129 that torpedoed the M/S Trafalgar. It actually sank 29 com-
60 WWWORLD 1 2013
On the boat deck: Svend Mørkved in The Arabian Gulf in 1945 (Photo: Private)
mercial vessels, five of them Norwegian. The rations on board the lifeboat were extremely meagre, just three biscuits and a handful of corned beef pr. man pr. day. Fortunately, it rained a lot, so they had plenty of water. A hero’s welcome. The authorities at La Désirade would not help the shipwrecked crew, but when they reached Domenica the next day, they received a very warm welcome. A huge crowd had assembled on the beach as the lifeboats made their way to shore. Some of the men were so happy that they jumped over board and swam the last stretch. The news spread across the island like wildfire and it wasn’t long before the crew were taken to a police station where they were given new clothes and treated to drinks. After a festive party held in honour of the sailors they were brought to the city of Portsmouth and accommodated at the best hotels. Later they were taken to the capital Rosseau for more admiration and festivities, before they left the island and headed for St. Vincent/Grenada, Trinidad. Some of them later arrived in New York where the maritime accident inquiry was held. Valuable efforts. Svend Mørkved continued sailing after these dramatic events, later got married and had two sons and spent all his years in Tønsberg. The navy servicemen during the war years made invaluable contributions to the war effort, and many historians claim that the Norwegian merchant fleet was one of the main reasons that the Allies won over Nazi Germany.
M/S Trafalgar: The WW ship was sunk by a German submarine on 15 October 1942.
Sank: M/S Trafalgar sank after 20 minutes. (Illustration)
In New York: Fritjof Remøe (to the left) and Svend Mørkved at a bar on Coney Island, New York in June 1944. The two navy servicemen were friends for life. (Photo: Private) WWWORLD 1 2013 61
YOUNG TALENTS
The world as I see it
Maritime trainees learn the ropes
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 organisation to give their views on the market situation, current events and other subjects of interest.
france
Port-de-Bouc
Our guest this time is FREDERIC FONTAROSA, Business Director Ships Agency and Maritime Logistics of Wilhelmsen Ships Service living in the South of France.
It’s not difficult to guess why Eirik Berg and Finn K Harung are both smiling from ear to ear. They were selected from among hundreds of candidates to embark on a two-year maritime trainee placement to learn the ropes within the WW group. Text and photo: Stacey Trodal
Cultivating the “art of living”
Oslo, Norway: The placement which is organ-
ized by the Norwegian Shipowners’ Association, will provide both with the opportunity to travel and work across different companies and divisions within the WW group. ‘Through Wilhelmsen’s extensive network I have the possibility to gain lots of international experience and thus a better cultural understanding,’ says Eirik. Both have started their first rotations in Wilhelmsen Ships Service. Finn has a commercial background with a joint Master’s degree in Business and Management through the Norwegian School of Economics (NHH) and CEMS. He has begun his first placement with the finance department, where he is currently focusing on developing a tool for mapping and measuring potential sales.
P
“Like an iceberg”. Finn is surprised at the
complexity of the group’s operations. ‘In many respects it’s much like an iceberg; most of what I knew before was just the tip,’ he says. Eirik has just completed his Master’s degree in Engineering with a specialization in Marine Technology from Norwegian University of Science and Technology. He is currently testing his feet with the project logistics team. The division is responsible for organising the transportation of large, heavy, fragile, or other kinds of complex cargo, such as ship sections, wind turbines and satellites.
62 WWWORLD 1 2013
France:
So, I decided that I was not going to talk about
potential growth or decline of certain markets, but I would use this platform to talk about the world as I see it through my southern European eyes and how our values relate to the ones of our company. What we generally call “l’art de vivre”, “L’arte di vivere”, or “el arte de vivir”, is finding the right balance between work, leisure, family, friends and food. One of the most valued foundations of traditional Mediterranean cultures is taking the time to enjoy and share time with people that one cares about. This is our teaming and collaboration and it’s perhaps the value we cherish the most. Those who have not experienced a 5-6 hours Sunday family meal would not understand. To a foreigner sitting at one’s table such a meal
might sound like an endless family feud, when it is, in fact, the exact opposite. We are vociferous and expressive, and we do it with passion, because we care, because we want to help, because we want to succeed and celebrate success. We empower by “being there” for our family, our friends and for our business colleagues. We stewardship by paying attention to the small things like taking time to help a friend, by ensuring everyone around us is well taken care of and no one is left behind. When faced with problems we ask for help and innovate. We look at self-actualization and the right life balance as investment in the future. We live well, and we live passionately.
So, although we are daily reminded of the economic crisis faced by several southern European countries, our values and our lifestyle: i.e. the
We empower by “being there” for our family, our friends and for our business colleagues.
‘My short term goal is to learn as much as I
can about as many things as possible by catching the opportunities that present themselves. Before I started here, I thought the maritime industry was just about ships going from port to port. I have been quite surprised by the number of services needed just for supporting the shipping industry, and from working with project logistics, I have a greater insight into the logistics supply chains and the extent of the services involved,’ says Eirik. Both are looking forward to the opportunities ahead and learning more about the group and its various companies, and not least, making a difference.
ort-de-Bouc,
When I was asked to give my views about Southern Europe, the first thing that came to mind was not the current economic crisis faced by several countries, or future economic outlook but the southern European lifestyle relayed by the sound of cicadas (local cricket), the traditional family meal, the shinning sun, the flavour of food, the care and laugh of friends, the beauty of the Mediterranean sea, the delectable wine, the delicious fresh fruits, the tasty grilled fish, the scent of olive oil… I had to pinch myself to come back to reality.
Ready: Eirik Berg and Finn K Harung are ready to make their mark in the maritime industry.
ones of Southern European countries and the ones of Wilhelmsen which are governed by a variety of socially and economically based rituals, will take us through this crisis because when you have a fruitful life, you bring out the best in people around you. I am reminded of that every time I meet a fellow colleague in Southern Europe and in the rest of the world. Here’s to the good and productive lifestyle! WWWORLD 1 2013 63
historic corner
Wilh. Wilhelmsen was established as an independent company in 1861 and celebrated 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.
Goodbye to the tanker trade Following the sale of the two VLCCs Tarim and Tartar (300.000 dwt, built in 1993) in March 2000, WW’s third tank trade period was history. The company realized that the effort to regain its position as a player in the tanker market had been quite unsuccessful. Text: Hans Chr. Bangsmoen
slo, Norway: WW’s first and
O
largest tank trade era started in 1913 with San Joaquin (10.360 dwt.) During World War I the fleet grew and in 1919 the company controlled 93 per cent of the world fleet. Later a period of downsizing began in order to concentrate on the liner business and in 1942 the last tanker, Mirlo (11.340 dwt) was torpedoed.
The second phase: A new tanker phase
started in 1951 with the delivery of Tartar (16.390 dwt); it ended in 1984 with the sale of Tigre (286.170 dwt) in 1984. In the rebuilding period after World War II the liner trade was mainly in focus, but after considerable coaxing from owner and partner Niels Werring the company again engaged in the tanker trade. At that time, it was easier to pay off a tanker than a liner. In the 1950s and 60s, WW again became one of Norway’s largest tanker companies. Between 1951 and 1967 the company acquired 23 tankers, of them 21 newbuildings. The contracts were time charters of five to seven years. At the end of the contract period the ship was almost paid off and was competitive in both the spot and the time charter market. After the Six Day War in 1967, the company downsized again. The ordering of the three ULCCs (at 380.000 dwt) in 1973 almost went completely wrong. The Yom Kippur War in 1973 and the ensuing oil embargo ruined the tanker market. Two contracts were cancelled, but WW had to take delivery of Titus in 1976. This ship was the biggest in WW’s 150 yearlong history, but financially speaking the story was rather glum. Titus was sold in 1980. The third phase: The third tanker period in
the 1990s was not much of a success either. Thanks to the Docenave contract (mentioned previously in Historic Corner), the results were not too bad, even though it was the ore
Tartar: Along with her sister ship Tarim, this VLCC remains WW’s last tanker adventure. (Photo: WW’s historical archives)
transport rather than the «In the 1950s and 60s, WW again tanker trade that carried became one of Norway’s largest the project. There are several tanker companies.» reasons why WW’s exlenging both personnel resources and the pectations of the tanker market in the 1990s remained unrealized. It was largely due to organization. This kind of operation is hard market conditions. However, WW had ever to combine with the tanker trade where quick since the inter-war years focused on the liner decisions, a lean organization and high tempo trade, a long-term industrial activity chal- are required.