Baltic Transport Journal 3-4/24

№ 3-4/2024 (119-120), MAY/AUGUST

ISSN 1733-6732

bimonthly-daily companion

Journal

Baltic Transport

B TJ T R I P 2024

Finnlines’ Malmö-Świnoujście ferry service E CO N O M Y

Shifting priorities & drivers.

Highlights from ESPO’s latest port investment study T E C H N O LO G Y

Under full sail. Wind-assisted propulsion first of the line in shipping’s race to net zero MARITIME

Be prepared for the next wave.

FuelEU Maritime explained OFFICIAL MEDIA PARTNER OF:

The Port of Opportunities The Port of HaminaKotka is a versatile Finnish seaport serving trade and industry. The biggest universal port in Finland is an important hub in Europe and in the Baltic Sea region.

Welcome to the Port of HaminaKotka!

haminakotka.com

Dear Readers,

I

f I were to choose a ‘number of the issue,’ then it’d surely be 80. To be precise: 80 billion euros of investments that are, according to a survey conducted by the European Sea Port Organisation (ESPO), needed within a decade for the continent’s harbours to play their role in the energy transition. As we have presented on our latest maps, the Baltic Green Map (and its Catalogue) and the Baltic Offshore Wind Energy Map, there are heaps of all sorts of (ongoing & planned, soft- & hardware) projects tasked with greening transport & logistics as our region is far & wide. Their implementation will certainly benefit from robust financing, a topic analysed in the Shifting priorities & drivers. Highlights from ESPO’s latest port investment study article in the Economy column.

I am also happy to share that this year’s summer issue hosts another coverage from a BTJ Trip. This time around, Finnlines invited us to come and see for ourselves the company’s new ferry service between Malmö and Świnoujście. We also had the opportunity to ask a few questions for Tom Pippingsköld, Finnlines’ President and CEO. This edition is overall interview-rich, as we also talked with TT Club’s Laurence Jones about the importance and evolution of port safety, WindEnergy’s Diana Barrios about the development of the wind energy sector (including, naturally, ports’ part in it), and Fogmaker’s Fredrik Rönnqvist and Gustav Stigsohn about fire suppression systems.

The Legal section brings forth the key takeaways from TT Club’s latest Cargo Theft Report (authored together with BSI) and the organisation’s analysis of container losses – either due to crime or weather. The Maritime column is this time big on regulations – there are reads on a potential shipping decarbonisation mechanism based on the International Maritime Organisation’s Carbon Intensity Indicator, on the likely perils the implementation of the FuelEU Maritime may bring about for Document of Compliance holders, as well as a piece that thoroughly dissects the Regulation itself.

The Technology part of the summer issue has got your back with reads on remote robots for shunting operations (including in Baltic seaports), software that optimises the management and performance of entire fleets, and a real-world case of how wind-assisted propulsion makes shipping greener. In Events, you’ll find coverage of this year’s Spring Congress of the Association of European Vehicle Logistics (ECG).

Finally, Transport miscellany is back, this time with entries on an elegant, likewise famous, ship series, how love costs (and can do it sky-high!), and why bigger doesn’t necessarily have to stand for better (tell that to container carriers, I dare you!).

EDITORIAL Baltic Transport Journal Publisher

BALTIC PRESS SP. Z O.O. Address: ul. Pułaskiego 8 81-368 Gdynia, Poland office@baltictransportjournal.com

www.baltictransportjournal.com www.europeantransportmaps.com Board Member

BEATA MIŁOWSKA

Managing Director

PRZEMYSŁAW OPŁOCKI

Editor-in-Chief

PRZEMYSŁAW MYSZKA przemek@baltictransportjournal.com

Roving Editor

MAREK BŁUŚ marek@baltictransportjournal.com

Proofreading Editor EWA KOCHAŃSKA

Contributing Writers

OKSANA ANTIPA, ARNAUD DIANOUX, STAMATIS FRADELOS, ROMAIN GRANDSART, CHRISTIAN RAE HOLM, STEVE MARSHALL, ALEKSANDAR-SAŠA MILAKOVIĆ, MONIKA ROGO, FITZWILLIAM SCOTT, MIKE YARWOOD

Art Director/DTP DANUTA SAWICKA

Head of Marketing & Sales PRZEMYSŁAW OPŁOCKI po@baltictransportjournal.com

If you wish to share your feedback or have information for us, do not hesitate to contact us at: editorial@baltictransportjournal.com

Contact us:

PRZEMYSŁAW OPŁOCKI tel.: +48 603 520 020

Have the greatest read ever!

Przemysław Myszka Cover Canva

ISSN 1733-6732

№ 3-4/2024 (119), MAY/AUGUST

Baltic Transport Journal

bimonthly-daily companion

B TJ T R I P 2024

Finnlines’ Malmö-Świnoujście ferry service E CO N O M Y

Shifting priorities & drivers.

Highlights from ESPO’s latest port investment study T E C H N O LO G Y

Under full sail. Wind-assisted propulsion first of the line in shipping’s race to net zero MARITIME

Be prepared for the next wave.

FuelEU Maritime explained OFFICIAL MEDIA PARTNER OF:

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Breakers on the Coast at Sunset by Carl Kenzler, proto: Artvee

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3-4/2024 | Baltic Transport Journal | 3

”

Digitalization creates safe, green and efficient intelligence for ports of the future.

Port of Kaskinen (Kaskisten satama) is located on the western coast of Finland, in the Gulf of Bothnia. The port handles pulp, dry bulk cargo and wind mill components as well as chemicals for the forest industry. The port handles around 1 million tons of goods annually.

WWW.PORTOFKASKINEN.FI

CONTENTS

36

LEGAL

36 It pays to be safe!

– Interview with Laurence Jones, Director Global Risk Assessment, TT Club

by Przemysław Myszka 40 Crime goes up when the global economy goes down – Key takeaways from TT Club and BSI’s 2023 Cargo Theft Report

by Mike Yarwood 42 Missing in action – Lost containers cause further supply chain disruption

by Mike Yarwood

3

REGULAR COLUMNS

3 Editorial 8 BTJ calendar of events 10 Safety news by TT Club 12 Market SMS 14 What’s new?

16 Map news 20 Venture forth 26 What’s in the Cabinet 28 Chart of the issue: Baltic port market in 2023 30 The new (sailing) bridge for trade & tourism – BTJ Trip 2024 / Finnlines’ Malmö-Świnoujście ferry service

by Przemysław Myszka and Przemysław Opłocki 34 Coming a long way – Interview with Tom Pippingsköld, President and CEO, Finnlines

by Przemysław Opłocki 78 Events: Transforming vehicle logistics – Key innovations and strategies highlighted at ECG Spring Congress 2024

by Ewa Kochańska 80 Transport miscellany

by Marek Błuś and Przemysław Myszka 84 Who is who

44

ECONOMY

44 Shifting priorities & drivers – Highlights from ESPO’s latest port investment study

by Ewa Kochańska 48 Adaptability and resilience – Navigating the complexities of logistics in Ukraine amidst war: a perspective from 2022 to present

by Oksana Antipa 3-4/2024 | Baltic Transport Journal | 5

Moves a lot.

Changes everything.

With a maximum lifting capacity of 1,600 tons, our travelling cargo crane TCC 78000 will drive your heavy-duty projects to success. www.liebherr.com

Maritime cranes

CONTENTS

50

MARITIME

50 The (critical) cost of carbon – CII is about to get more expensive – here’s how to prepare

by Aleksandar-Saša Milaković 52 The faster & safer, the better – Interview with Diana Barrios, Acting Head of Membership, WindEurope

by Przemysław Myszka 56 FuelEU for thought – The new regulation leaves DoC holder with fuel liabilities risk

by Steve Marshall 58 Be prepared for the next wave – FuelEU Maritime explained

by Stamatis Fradelos 61 Paving the green path – ECOLOG-Deltamarin liquid CO2 carrier co-op

by Fitzwilliam Scott

66

62

NEWSLETTER BPO

62 Baltic Ports Conference 2024: shaping a geopolitically and environmentally aware Baltic maritime industry

by Monika Rogo 64 Welcome new Members!

by Monika Rogo

TECHNOLOGY

66 Data opens new efficiency horizons – Examples from the OSV sector of how digital systems can cut fuel consumption, increase vessel utilisation, improve charter parties, heighten safety, and more

by Arnaud Dianoux 68 Pulling power – Vollert’s shunting robots in the Baltic (and beyond)

by Fitzwilliam Scott 70 Never compromise – Interview with Fredrik Rönnqvist, Segment Manager for Material Handling, and Gustav Stigsohn, Product Manager, Fogmaker

by Przemysław Myszka 74 Under full sail – Wind-assisted propulsion first of the line in shipping’s race to net zero

by Romain Grandsart 76 No crystal ball needed – How fit for purpose data can simplify vessel performance

by Christian Rae Holm 3-4/2024 | Baltic Transport Journal | 7

BTJ CALENDAR OF EVENTS Baltic Ports Conference 2024, 4-6/09/24, LT/Klaipėda, www.balticportsconference.com Join us this early autumn for yet another gathering of the Baltic port industry! This time around, we will focus on increased resilience and harmonized responses to geopolitical changes as the region’s maritime sector, seaports & shipping alike, is forging a new & greener business model.

WindEnergy Hamburg 2024, 524-27/09/24, DE/Hamburg, windenergyhamburg.com WindEnergy Hamburg is wholly tailored toward addressing the major issues facing the international wind energy sector. It brings together a high-caliber, professional audience and exhibitors demonstrating their innovations and solutions from across the entire value chain of the industry. Key players will be in the spotlight in every hall, including an expert focus section on storage technologies.

AntwerpXL, 8-10/10/24, BE/Antwerp, www.antwerpxl.com/visit/register-your-interest Hosted at the heart of the European breakbulk market, AntwerpXL – the award-winning breakbulk, heavy-lift and project cargo event – attracts 3,800+ attendees providing a distinctive platform for fostering trust-based relationships among visitors and exhibitors. With participants from 66+ countries and 100+ exhibitors, AntwerpXL offers access to a premium audience, enabling you to showcase your expertise, expand your network, and engage in quality-driven business interactions.

World Ports Conference 2024, 8-10/10/24, DE/Hamburg, worldportsconference.com 2024 will be a pivotal year for ports and their communities. Geopolitical instability is on the rise. Physical and digital security is under threat, at sea and on shore. Shipowners, supply chain providers, and cargo owners must adapt rapidly. The energy transition towards low- and zero-carbon fuels must be balanced against national energy security concerns. #IAPH2024 will offer attendees insights on these topics, revealing how ports – from developing and developed nations – are building secure and sustainable solutions to these shared challenges, in a deeply interconnected world.

Bulk Terminals Antwerp 2024, 23-24/10/24, BE/Antwerp, www.bulkterminals.org/index.php/events The Annual ABTO Bulk Terminals Conferences are designed for all those involved in the transportation, storage and handling of bulk commodities. We welcome equipment and service suppliers, professional advisors, and academics to the conference in addition to terminals and ports. Indeed, ABTO strongly believes that bulk terminals will achieve increased operational efficiencies, safety, and environmental compliance only through interaction with these other organisations.

GreenPort Congress & Cruise 2024, 23-25/10/24, FR/Le Havre, portstrategy.com/greenport-cruise-and-congress GreenPort Congress is a meeting place for the port community to discuss and learn the latest in sustainable environmental practice.

Going under the theme of ‘Balancing environmental challenges with economic demands,’ the vent offers ways to reduce their carbon footprint and be more sensitive to environmental considerations, both of which are vital to future success.

Interferry2024, 26-30/10/24, MA/Marrakech, interferryconference.com Welcome to Interferry’s first conference on the African continent! Join us for the 48 th edition together with a great number of owners and top-level decision-makers in the ferry industry, along with the lively and interactive atmosphere, to foster the exchange of experience, ideas, and contacts. As always, our event will feature topical speakers and sessions, panels with ferry leaders, many outstanding networking opportunities, and a technical tour. Also, sponsors and exhibitors will enjoy a large exhibition area in which to display their products and services to conference attendees.

Offshore Energy Exhibition & Conference 2024, 26-27/11/24, oeec.biz OEEC serves as an essential gathering point for professionals, experts and companies active in the offshore energy sector and beyond.

Covering a diverse spectrum – which includes offshore wind, hydrogen, oil & gas, and marine energy – OEEC offers a platform for these industry stakeholders to come together, ignite innovation and shape the future of the energy transition. With expert speakers, interactive exhibits and unparalleled networking opportunities, this event is an opportunity to stay in the curve in the offshore energy game.

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8 | Baltic Transport Journal | 3-4/2024

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Efficient & Reliable Transport Solutions between Germany, Poland, Lithuania and Sweden www.ttline.com/en/freight

WORKING TOWARDS SAFER PRACTICES

TT Club is the leading provider of mutual insurance and related risk managment services to the international transport and logistics industry.

Its core mission is to make the industry safer and more secure. To find out more visit ttclub.com

SAFETY NEWS BY

PREVENTION OF PEST CONTAMINATION OF CONTAINERS: JOINT INDUSTRY GUIDELINES FOR THE CLEANING OF CONTAINERS – UPDATED The Bureau International des Containers, the Container Owners Association, the Institute of International Container Lessors, and the World Shipping Council (WSC) – joined this time also by the International Cargo Handling Coordination Association – have released the latest version of the easy-to-use best practices to avoid carrying unwanted stowaways. “Every year, 250 million containers are transported across the world with food, clothes, electronics and other goods we all need. While crucial for the smooth functioning of the global supply chain, containers and their cargoes can also harbour and transfer contaminating

pests. […] Experience shows that the introduction of new pests can severely upset an existing ecosystem, with serious ecological consequences and possibly billion dollar impacts on a nation’s economy,” the parties highlighted in a press release. Lars Kjaer, Senior Vice President of WSC, added, “Each party in the international container supply chain has a custodial responsibility to make sure cargo and containers are clean when they arrive and when they leave their care. If we all live up to these standards, containers will reach their destination faster, and our agriculture, forestry and natural resources will be protected.”

TT CLUB JOINS TFG The freight insurance specialist has become a part of the UK’s Department for Transport industry-led Task and Finish Group (TFG), set up to explore raising standards in truck parking facilities to improve driver welfare and cargo security. “TT applauds the UK Government’s initiative and is grateful to add its experience of trends in cargo theft and the modus operandi of criminals in order to encourage adoption of standards at truck stop facilities,” said Mike Yarwood, TT Club’s Managing Director of Loss Prevention, who chairs one of the working groups looking at parking standards. In recent years, TT Club has ramped up its campaign to increase awareness of the risks associated with overnight parking of trucks, not just in the UK but across Europe as a whole. The insurer emphasised in a recent report, penned together with BSI, that over 70% of cargo thefts in 2023 around the world were from trucks. TFG offers an opportunity for a unique gathering

of individuals from industry bodies, truck park and motorway service operators, the police force, standards organisations, insurers, and users to explore, identify and understand the blockers to and opportunities for better security and safer rest facilities for those dubbed the ‘knights of the road.’ TFG will survey why those operators of secure facilities adopt current standards, identify the highest crime locations across the last four years, explore greater use of automatic number-plate recognition/closed-circuit television equipment, and map violent crimes against drivers. “The extent to which the UK and EU economies rely on trucking is staggering. As industry stakeholders, we must strive to both increase the safety of drivers and decrease the loss of cargo. That is why it is hoped that this TFG will result in longer-term strategies to improve the current truck parking landscape in the UK, and, in addition, that useful guidance can be offered to EU legislators,” added Yarwood.

MANDATORY REPORTING FOR CONTAINERS LOST AT SEA During its 108 meeting, the International Maritime Organization’s (IMO) Maritime Safety Committee adopted amendments to the International Convention for the Safety of Life at Sea (SOLAS), mandating as of 1 January 2026 that all containers lost at sea should be reported. “The new regulations, specifically amending SOLAS Chapter V Regulations 31 and 32, mark a significant advancement in maritime safety and environmental protection. By ensuring prompt and detailed reporting of lost and drifting containers, these amendments th

will enhance navigational safety, facilitate swift response actions, and mitigate potential environmental hazards,” commented Lars Kjaer, Senior Vice President at the World Shipping Council. His organisation, in anticipation of introducing mandatory reporting requirements, has since 2008 gathered information from its members on the number of containers lost at sea. The latest report speaks of 221 boxes lost in 2023 (with a recovery rate of about 33%), a reduction from the previous lowest-ever loss of 661 the year before.

CARGOES OF CONCERN The Cargo Integrity Group has identified 15 commodities, commonly carried in containers, that, under certain conditions, can cause dangerous incidents. While these are usually transported safely when regulations and guidelines are followed (such as the Quick Guide to the CTU Code), the Group has created this list to highlight cargoes that can become hazardous if mishandled. The industry bodies forming the Group emphasise that cargoes that are mis-declared or have incomplete or incorrect information about their identity are more likely to be involved in incidents. The Cargoes of Concern list is not exhaustive, but each item illustrates a common type of hazard, divided into three categories. First, reactive hazards: these can catch fire and cause significant damage and casualties in specific circumstances. Second, spill or leak risks: these commodities can present a risk if not packed properly or if they are damaged; spills or leaks from such cargoes can harm the health of people cleaning up the spill as well as the environment. Third, improper packing: cargoes that are poorly or incorrectly packed or secured in the container can lead to injuries to personnel or damage to nearby containers, property, or other shipments; such 10 | Baltic Transport Journal | 3-4/2024

incidents can cause severe accidents at sea or on land, like truck rollovers and train derailments. The Cargo Integrity Group also plans to publish additional guidance on the identification and safe handling of these cargoes. “The combined experience of our organisations has been harnessed to identify these categories and result in pinpointing some commodities where the risks are perhaps less obvious. While the potential dangers of transporting, for example, calcium hypochlorite or lithium-ion batteries might be more widely appreciated, the combustible qualities of seed cake or the hazards associated with cocoa butter or vegetable oils, will be less well-known,” shared Peregrine Storrs-Fox, Risk Management Director at TT Club. Lars Kjaer, Senior Vice President of the World Shipping Council, added, “Every actor in the global container supply chain is responsible for the health and safety of not only their own people but also those at any onward stage of the container’s journey. Complying with regulations and following the advice in the CTU Code saves lives, and we appeal to everyone shipping, packing and handling commodities that fall within the categories of these Cargoes of Concern to be particularly diligent.”

WORKING TOWARDS SAFER PRACTICES

TT Club is the leading provider of mutual insurance and related risk managment services to the international transport and logistics industry.

Its core mission is to make the industry safer and more secure. To find out more visit ttclub.com

SAFETY NEWS BY

LEX MARITIMA After a decade of work under the Comité Maritime International’s (CMI) International Working Group, the 25 major global principles of maritime law have been put on paper for the very first time.

The Draft CMI Lex Maritima was prepared on the initiative of Eric Van Hooydonk, a Ghent University Professor and a lawyer in Antwerp. In 2014, he argued in the Journal of International Maritime Law that, although the existence of a common Lex Maritima is accepted worldwide, the principles in question have never been precisely identified nor formulated in a set of rules. At the Professor’s suggestion, the CMI launched a project to draft the Lex Maritima. Van Hooydonk carried out research on national legal

systems to distil the major, globally accepted common principles from them and drafted the instrument. “It was a fascinating job to search for the deepest, universal core in the vast multitude of international and national maritime rules,” he commented. The Draft CMI Lex Maritima comprises principles on fundamental issues, such as the interpretation and sources of maritime law, the status, ownership and management of ships, the responsibilities and liabilities of shipowners and operators, the shipmaster, the pilot, the limitation of liability, maritime contracts, chartering agreements and contracts of carriage, collision, salvage, general average, wreck removal, liens and mortgages on ships, arrest and detention of vessels, and time bars.

PARIS MOU PERFORMANCE LIST The Paris MOU Committee approved at its 57th meeting the 2023 inspection results and adopted new performance lists (in use from 1 July 2024 to calculate the ship risk profile) for Flag States and Recognized Organizations. The White, Grey and Black (WGB) List presents the full spectrum, from quality flags to those with poor performance that are considered high or very high risk. The WGB List is based on the total number of inspections and detentions during a three-year rolling period for flags with at least 30 inspections in that period. The White List represents quality flags with a consistently low detention percentage. Flags with average performance are

shown on the Grey List; their inclusion may serve as an incentive to improve and move to the White List. “At the same time, flags at the lower end of the Grey List should be careful not to neglect control over their ships and risk ending up on the Black List the following year,” Paris MOU stressed in a press brief. The latest WGB List features 71 flags: 42, 17, and 12, respectively (vs. 2022’s 66: 39, 18, and nine in the respective categories). The Baltic Sea region’s Denmark tops the White List, with Finland in the Best 10 in 6th place. Sweden (15), Germany (21), Estonia (28), Lithuania (34), and Poland (40) are also on the White List, whereas Latvia (43) opens the Grey List.

THE FUTURE OF MARITIME SAFETY REPORT The 2024 version of Inmarsat Maritime’s report reveals that Global Maritime Distress and Safety System (GMDSS) calls decreased by 7.6% in 2023 over the previous year. Despite this decline, the service was still triggered on 788 occasions and remains close to the six-year annual average of 799 calls. As well as providing a snapshot of current safety metrics, Inmarsat wants to use The Future of Maritime Safety Report as a call to action for the maritime industry to embrace data sharing and collaborative problem-solving as the sector strives to navigate through significant changes (including the transition to greener propulsion technologies and escalating geopolitical tensions). The report suggests that any concerns regarding data pooling related to confidentiality or reputational damage could be addressed by anonymising casualty and incident data. It recommends that the shipping industry establishes a list of standard data points to monitor and report, including casualties and

incidents, injuries or deaths at sea, and near misses. It also endorses trend analysis to support the development of safety measures, with a particular emphasis on developing risk treatments for well-known and recurring issues. Peter Broadhurst, Senior Vice President Safety and Regulatory at Inmarsat Maritime, said, “By harnessing the power of anonymised safety data, we can identify trends, develop specific mitigation measures, and enhance the overall safety of our ships and crews.” He furthered, “Although progress has been made, shipping continues to experience significant casualty rates. We collect vast amounts of safety data, yet the current siloed-working model hinders our ability to fully leverage the actionable insights available to us. By pooling data, we can create a more holistic and objective view of maritime safety to inform performance improvements and ultimately reduce the occurrence of preventable safety incidents to save lives at sea.”

SEAFARERS GO DIGITAL The European Community Shipowners’ Associations (ECSA) and the European Transport Workers Federation (ETF) have launched the initiative in question to identify and address the challenges of digitalisation for shipping and people working offshore.

The Seafarers Go Digital project recognises the need to adapt international regulations, training programmes, and operational practices so that digital technologies are embraced while the employment rights and well-being of seafarers are safeguarded. The initiative raises awareness in key areas such as onboard digitalisation, cybersecurity, Internet access, e-certification, digital skills, and attractiveness of the maritime profession, putting forward policy recommendations for further cooperation between the industry and the unions, policymakers, and other relevant stakeholders.

“Supporting shipping and seafarers in the digital transition is a key priority for European shipowners. We need to ensure that seafarers

are upskilled and reskilled to work safely with the new digital tools and technologies. Digitalisation can help make the profession more attractive and more diverse, offering career opportunities on board and ashore and enhancing the participation of women and underrepresented groups,” underscored Sotiris Raptis, ECSA’s Secretary General. Livia Spera, ETF’s Secretary General, added, “The Seafarers Go Digital initiative responds to the need to prepare the maritime professionals for the digital age. Having in mind the need to safeguard the rights, welfare and safety of seafarers, we want to promote a fair and inclusive digital transition. Digitalisation can be an opportunity and can help improve the attractiveness of the maritime professions. Through this initiative, we commit to working together to benefit the most from the digital transition while mitigating its risks and contributing to a sustainable and attractive future for seafarers.”

3-4/2024 | Baltic Transport Journal | 11

For more Market Statistics Made Simple please visit: www.baltictransportjournal.com

The Port of Tallinn:

The Port of Naantali: 42,303 trucks & trailers

Measured in tonnes, the Estonian seaport’s containerised freight traffic totalled 1.03 million tonnes across 2024’s first six months, up 9.8% year-on-year. The Port of Tallinn took care of 6.6mt in H1 2024 (-0.3% yoy), including apart from the above also 3.48mt of wheeled (ferry & ro-ro) cargo (+1.9% yoy), 1.2mt of dry bulk (+15.5% yoy), 648kt of liquids (-33.7% yoy), 233kt of break-bulk (+3.5% yoy), and 7.0kt classified as non-marine cargo (-70% yoy). Tallinn’s passenger traffic totted up to 3.63m, of which the Helsinki crossing accounted for almost 3.21m (+2.8% yoy), followed by the Tallinn-Stockholm service with 255k (-1.8% yoy), 93k across the Muuga-Vuosaari link (+24.3% yoy), 20k labelled as ‘other’ (+3.1% yoy), as well as 54k cruise travellers (-22.7% yoy). The port’s subsidiary TS Laevad also served 1.04m ferry passengers domestically (+1.8% yoy), plus transported 507k private vehicles (+2.9% yoy).

According to Statistics Finland, the Finnish seaport’s international ferry traffic also served 72,838 passengers, up 46.1% year-on-year, and 8,896 private vehicles & busses (+41.3% yoy). The Port of Naantali took care of over 1.43 million tonnes from January to April this year (+6.1% yoy), of which international cargo flows advanced by 9.1% yoy to 1.04mt whereas domestic ones contracted by 1.1% yoy to 395.1kt. With 761.3kt (+14.3% yoy), general cargo (chiefly wheeled freight) cut out the biggest share, followed by 399.6kt of oil products (-6.8% yoy), 100.2kt of timber (-17.3% yoy), 65.8kt of grains (+68.8% yoy), 42.1kt of crude minerals and cement (-9% yoy), 30kt of coal & coke (+75.6% yoy), 29.8kt of break-bulk (+7% yoy), 4.6kt of metals and metal manufactures (+77.9% yoy), 274t of plywood & veneers (+94.3% yoy), 58t of chemicals (-97.8% yoy), and 47t of sawn wood (+571% yoy).

125,486 TEUs handled in H1 2024 (+15.4% yoy)

handled in I-IV 2024 (+17.8% yoy)

Finnlines:

400k ro-ro cargo units carried in H1 2024 (+12.4% yoy) The company’s fleet also transported 409 thousand private & commercial passengers, up 33.7% on the result of 2023’s first half. Finnlines also transported 658 thousand tonnes of non-unitised freight (-6.9% year-on-year) and 47k vehicles other than passenger cars (-45.3% yoy).

The Port of HaminaKotka:

289,283 TEUs handled in H1 2024 (-6.2% yoy) The Finnish seaports handled 6.8 million tonnes in international traffic this half year, down 13.5% year-on-year, including 4.38mt of exports (-14.2% yoy) and 2.42mt of imports (-12.2% yoy). HaminaKotka’s domestic cargo traffic also contracted – by 22.1% yoy to 109kt. In June and July, Kotka’s Kantasatama welcomed this year’s first (out of six) cruise calls: by Phoenix Reisen’s Deutschland and Regent’s Seven Seas Navigator. The cruise season will end on 28 September 2024 with the arrival of Oceania Cruises’ Sirena.

Photo: Port of Naantali

The Port of Antwerp-Bruges:

143.2 million tonnes handled in H1 2024 (+3% yoy) With 74.2mt (+6.8% year-on-year), containerised freight cut out the largest share, followed by 46.1mt (+0.7% yoy) of liquid and 7.6mt of dry bulk (+0.4% yoy), 10.3mt of wheeled (ro-ro) cargo (-5.7% yoy), and 5.0mt of break-bulk (-6.2% yoy). Antwerp-Bruges’ container traffic advanced by 4.1% yoy to 6,665k TEUs. The Belgian ports also handled 1.66m vehicles (-9% yoy). The Port of Zeebrugge welcomed 270.6k cruise passengers (+8.9% yoy) on board 82 vessels.

The Port of Helsinki:

345,712 trucks & trailers handled in H1 2024 (+4.7% yoy)

Photo: Port of HaminaKotka

12 | Baltic Transport Journal | 3-4/2024

Tonnage-wise, wheeled (ferry & ro-ro) cargo traffic amounted to 4.55 million tonnes, up 7.7% on the H1 2023 result. The Finnish seaport also handled 215,904 TEUs (+0.7% yoy), i.e., 1.66mt of containerised freight (+1.4% yoy). Almost 546kt of dry bulk went through the quays operated by the Port of Helsinki (-19.3% yoy) and 254.8kt of break-bulk (-39.9% yoy). In total, the Port of Helsinki took care of 7.06mt (+0.4% yoy), of which international traffic totted up to 6.95mt (+0.8% yoy) and cabotage – 107.6kt (-20.2% yoy). The Finnish seaport also welcomed 4.18m ferry passengers over 2024’s first half, up 4.8% yoy, including 3.35m with Tallinn (+4.6% yoy), 728.4k with Stockholm (+5.9% yoy), 78.9k with Travemünde (+4.1% yoy), 14.7k with Mariehamn (-22% yoy), and 12.1k classified as ‘others’ (+40.8% yoy). Nearly 662.2k private vehicles were transported in ferry traffic (-3% yoy). On the other hand, there were fewer cruise passengers visiting Helsinki, down 14% yoy to 50.3k.

MARKET SMS The Port of Gothenburg:

The Port of Gdańsk:

467 thousand TEUs handled in H1 2024 (+4.7% yoy) The Swedish seaport’s rail container traffic advanced by 6.4% year-on-year to 249k TEUs. “The signals we received from the market earlier this year regarding increased purchasing power and demand have proven to be accurate. Export volumes are also continuing to rise, partly due to the Swedish forest industry expanding its exports via the Port of Gothenburg,” Claes Sundmark, Vice President of Sales at the Port of Gothenburg, highlighted. As such, the Swedish seaport is heading towards beating its 2023 all-time high container result. At the same time, ro-ro traffic contracted by 3.6% yoy to 270k units, with the finished vehicle logistics segment noting the same decrease to 132k units. The Port of Gothenburg also took care of 10 million tonnes of liquid bulk (-9.1% yoy) as well as 270kt of dry & break-bulk (+31.1% yoy). With 652k ferry & cruise travellers, passenger traffic was up 2.5% on the H1 2023 result.

Viking Line: 66,385 cargo units carried in H1 2024 (+2.3% yoy) At the same time, the company’s ferries served 2,062,271 passengers, down 5.6% on the previous year’s first-half result. The number of travellers on Birka Gotland since the launch of the intra-Baltic cruise service (20 March 2024) was 139,062 (Viking Line shared in its Half year financial report January-June 2024 that “Initial traffic for Birka Gotland has not met the company’s expectations and has entailed higher start-up costs than expected”).

The Port of Norrköping:

27,847 TEUs handled in Q1 2024 (+21.7% yoy) Tonnage-wise, the Swedish port took care of 219 thousand tonnes of containerised freight, up 31.1% on the January-March 2023 result. The Port of Norrköping handled 986kt over Q1 2024 (+5.8% yearPOH_205_x_133.5_.qxp_(BTJ 09.02.24 17:46yoy), Seite 1 of forest products (+8.3% yoy), 204kt of on-year), also includingPackage) 322kt of liquid bulk (-4.5% 234kt dry bulk goods (-1.0% yoy), 5.0kt of steel products (+66.7% yoy), and 2.0kt of break-bulk (-33.3% yoy).

38.1 million tonnes handled in H1 2024 (-7% yoy) The overall drop comes from the 62% year-onyear decrease in coal turnover, which totalled 3.3mt over 2024’s first half. On the other hand, the handling of liquid bulk advanced by 10% yoy to 20.1mt, followed by general cargo gaining 4.5% yoy to 11.6mt (of which containerised freight accounted for 10.2mt, noting an increase of almost 3% yoy). The Port of Gdańsk also took care of more grains, up 10% on the H1 2023 result to 1.5mt. Other dry bulk goods (1.5mt), as well as iron ore (52kt) and timber (39kt), all noted decreases.

The Port of Ystad:

383,855 ferry passengers served in Q1 2024 (+13% yoy) At the same time, 124,171 private vehicles were carried on board ferries serving Ystad’s traffic, up 9.9% year-on-year. The Swedish seaport handled 690 thousand tonnes over 2024’s first quarter (+3.8% yoy), including 655kt of wheeled (ferry) cargo (+2.8% yoy), 23kt of forest products (+475% yoy), and 12kt of dry bulk (-45.5% yoy). There was no handling of break-bulk vs. 2.0kt in Q1 2023. A total of 54,317 ro-ro cargo units went through Ystad’s quays (+/-0% yoy).

HAMBURG YOUR PORT portofhamburg.com info@portofhamburg.com @portofhamburg

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3-4/2024 | Baltic Transport Journal | 13

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ELME to add growth space

Meriaura orders new freighters

The Swedish spreader manufacturer will erect 1,700 square metres within its four-facilitystrong base in Älmhult this autumn. “The plan is to facilitate for increased manufacturing capacity in the existing product range as well as for new products that are planned to be launched within the truck and crane segment,” the company highlighted in a press release.

Gösta Karlsson, ELME’s CEO, added, “Our investments in product development have turned out well, and we can see an increased demand in Europe as well as Asia and the US. In 2025, we are scheduling several exciting launches, and to meet future capacity needs, we are now investing in larger premises.” The manufacturer, celebrating its 50th anniversary this year, has recently been focusing on developing their crane spreader segment, including talent acquisition and purchasing new machinery to make the production process more efficient.

The Finnish shipping line has entrusted the Dutch Royal Bodewes shipyard with the construction of two 6,750-tonne deadweight Ecotraders. The 105-metre-long Ice Class 1A vessels will be built in Hoogezand, with delivery planned for January and December 2026. The pair will sail on biofuel made

by Meriaura’s subsidiary VG-Ecofuel, produced from recycled raw material. “This order is a continuum in our series of investments to energy-efficient tonnage that utilises bio-oil. In the current geopolitical situation, we found it best to order the ships from an established shipyard operating in Western Europe, which is also in line with our ESG strategy. Security of delivery, quality and the yard’s ability to comply with safety and environmental regulations, and our good experience with the previous newbuildings were the most important factors in our decision to choose Royal Bodewes as our shipbuilder again,” commented Beppe Rosin, CEO of Meriaura. Jussi Mälkiä, Meriaura’s Founder and Chairman, added, “The two ships ordered now will start our newbuilding program that targets achieving carbon neutrality remarkably faster than IMO’s target [in the 2030s vs. by/around 2050]. Our purpose is to systematically renew our fleet with a series of newbuildings. The use of bio-oil combined with compensation enables us to reach this ambitious goal we have set.”

Photo: ELME

Klaipėda to have a new cruise terminal

Med-size Ports Network – established

The Lithuanian Environmental Protection Agency has recently decided that an environmental impact assessment is not required for the seaport to continue working on the new facility. Contract procurement procedures are therefore underway, with the project’s implementation phase expected to start this year. The new cruise terminal, designed by the Office of Consulting Structural Engineers from Lithuania, is planned to be developed on a plot of land owned by the port authority in the central part of the city, where existing quays will be reconstructed, new ones will be built, and the basin deepened.

A new administrative building housing the port authority will also be part of the new facility, alongside cafes, a conference room, a rooftop observation deck, a new marina, a waterfront open amphitheatre, pedestrian and cycling paths, and areas for recreation and events. “We are taking another step towards a new infrastructure for cruise shipping in the Port of Klaipėda.

Investing in the new terminal is not only about meeting the needs of the ships growing in size but also about creating value for the City of Klaipėda and its residents. I believe that the new terminal will improve the city’s infrastructure, will be an attractive public space for both tourists and residents and at the same time, it will become a symbol of the Port of Klaipėda, which will be visible both in the city’s urban panorama and from the Curonian Spit,” highlighted Algis Latakas, Director General of the Klaipėda Port Authority.

The ports of Cartagena, Monfalcone, Riga, Trieste, and North Sea Port have teamed up to work on sustainability, energy transition, digitalisation, and the European transport network. The port companies intend to exchange knowledge and best practices in energy management, including the introduction of renewable energy sources, environmental management, and sustainable port operations. The parties will also jointly strengthen commercial interests and support cargo flows between them, as well as share knowledge on further digitalisation, such as a port community system and traffic management. The network will also cooperate around funding opportunities and joint projects under European grants. “With this initiative, the four ports are launching a non-exclusive network of medium-sized ports to exchange knowledge and explore further operational cooperation. The network demonstrates that European port communities are committed and ambitious in achieving European objectives,” the founding ports highlighted in a press release.

Photo: Port of Klaipėda

14 | Baltic Transport Journal | 3-4/2024

NORDEN to acquire Norlat Shipping The Danish dry bulk & project cargo shipping company eyes the takeover of the Norwegian dry bulk operator Norlat Shipping, specialising in carrying forest products & other bulk commodities on trades from Northern Europe (including the Baltic) to North Africa & North America. The 1986-founded Norlat has offices in Sarpsborg and Bergen in Norway and in the Swedish capital of Stockholm, from where the company’s eight employees operate the asset-light business, based on chartered vessels with four-to-five monthly shipments on predominately Handysize ships. The acquisition is subject to merger clearance. The takeover will be NORDEN’s second, following the mid-2023 acquirement of Thorco Projects’ activities, integrated into NORDEN’s Freight Services & Trading business unit, operating as Projects & Parcelling, with Norlat Shipping also becoming part of that team.

WHAT’S NEW? Spirit of Tasmania V launched at RMC The Finnish Rauma Marine Constructions (RMC) saw the launching and christening (by Barbara Baker, Governor of Tasmania) of the second in a series of two ferries for the Tasmanian TT-Line Company. The 212 by 31 metres, gross tonnage of 48,000 ro-pax, which should be ready next spring, will sail between Devonport and Geelong alongside her sister ship, Spirit of Tasmania IV (launched last October and scheduled for completion and delivery by August 2024).

Each ferry will offer room for 1,800 passengers (across 301 cabins) and 3,700 lane metres for cargo. They will replace another made-in-Finland duo from the 1990s. “The Spirit of Tasmania vessels are specifically designed for this route and its demanding sea conditions. Our shipyard is known for its ability and expertise to customise Photo: Rauma Marine Constructions ships to meet the high standards and quality requirements of our clients. I am extremely proud of the progress in the construction of these vessels,” commented Mika Nieminen, RMC’s CEO and President. He also underlined, “The project we are delivering for TT-Line Company is also nationally significant, as it is one of the largest individual export deals between Australia and Finland.” The shipyard, now in its 10th year, also shared that its current order book extends to 2028.

It has recently invested in independent steel production, a new multi-purpose hall, and a heavy transfer ramp, among others.

Varberg’s New Farehamnen – online

Photo: Aarsleff

The Danish construction firm Aarsleff completed the project it had been working on since 2021, erecting a brandnew 90 thousand square metres terminal area that the Ports of Halland will use to ship more forestry products.

The works included dredging from two to 11 metres and setting up a 360-metre-long quay plus a 140-metre-long pier. Construction involved ramming 255 steel piles of 600 millimetres in diameter and measuring 35-to-50 metres as the foundation for the quay wall, upon which 223 slabs weighing 60-to165 tonnes rested on 253 pile tops (both produced at Aarsleff’s cement factory in Poland).

Ports of Halland secure EU support The Port of Halmstad will receive SEK12.1 million (almost €1.05m) for setting up a transhipment yard in Oceanhamnen, a brand-new harbour set to be ready by winter 2025/spring 2026. The project, worth in total about SEK30m, will see the construction of a 25,500-squaremetre yard, out of which two 5,120 m2 areas (four tonnes of bearing capacity per m2) will be dedicated to storing and handling cargo.

“We welcome the news that the EU will further support the development of our port. The port is an important part of Halmstad’s infrastructure and a strong contributing factor for companies to choose to establish and expand in our municipality. This expansion contributes to the green transition, to providing Halmstad residents with work, and to strengthening our growth. Good for people, the environment, and the economy,” commented Stefan Pålsson, who chairs Halmstad’s Municipal Board.

3-4/2024 | Baltic Transport Journal | 15

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New Poland-Spain rail service

DFDS sells OFC

GEODIS has put in motion a 2,200-kilometre-long connection that links Łódź in Central Poland with Barcelona. The first train set, carrying 44 cargo transport units, left Spain on 11 June 2024 and arrived in Poland three days later. According to GEODIS, the rail service spares the environment some 79% in emissions vs. a road alternative. “We have great ambitions for this new line, as we plan to increase the frequency to two trains per week in the near future,” said Marc Vollet, Chief Operations Officer at GEODIS European Road Network.

The Swedish Gotland Company will take over the Oslo-FrederikshavnCopenhagen (OFC) service for around DKK400 million (about €53.6m) from the Danish shipping & logistics firm. The deal includes the crossing’s ferries Crown Seaways (room for 2,168 passengers and 1,482 lane metres for wheeled cargo) and Pearl Seaways (2,044/1,370), port agreements, and terminal equipment. Some 800 employees in route operations and support functions will also move to Gotland Company (no layoffs are planned as part of the route transfer). DFDS will, after completion of the agreement subject only to customary closing conditions, provide certain support services to the buyer for an agreed and limited period. The deal, which also includes a potential earn-out payment, is expected to be closed in October 2024. The OFC, kicked off together with DFDS’ establishment in 1866, mainly functions as a cruise ferry service nowadays.

New South-North Sweden rail link As of 23 May 2024, a new twice-a-week service (for craneable and non-craneable units) connects Trelleborg and Umeå, with TX logistics providing rail traction. The transit time for the 1,280-kilometre-long route is about 40 hours.

New Poland-Netherlands service PKP CARGO and AGROMEX have partnered to rail-connect the former’s new multimodal terminal in Zduńska WolaKarsznice with Rotterdam. The twice-weekly crossing uses the T3000E rail wagon platforms suitable for carrying trailers and containers (including tank). The November 2023-opened facility in Zduńska Wola-Karsznice (Central Poland) spans over 13 hectares, including 33 thousand square metres of yard area. The terminal can handle train sets up to 750 metres in length; its yearly handling capacity amounts to 500 thousand cargo transport units.

Lakeway Link’s first sailing Lakeway Express, the ro-ro of the Swedish JV between Greencarrier and Wallenius, set sail for her first 22-hour-long voyage between the ports of Gdynia (OT Port Gdynia) and Södertälje on 21 May 2024. The 1,625 lane metres capacity freighter, flying the Swedish flag, plies three times per week in each direction. Following the reconstruction of the Södertälje locks in 2026, the service is expected to expand to include the Port of Västerås on the Lake Mälaren. “This is the first step in our introduction of a new, innovative waterway transport solution directly into Central Sweden and the Mälaren region. Our solution is a very competitive alternative to traditional road transport, providing a shipping option with comparatively low environmental impact,” Fredrik Hermansson, Lakeway Link’s CEO, underlined. He furthered, “Additionally, our service addresses the severe shortage of truck drivers.

Being non-driver-dependent, drivers leave their trailers at the quay, and the trailers are driven on board from there.”

Photo: DFDS

Polferries’ new ship sets sails The Polish ferry line deployed the 216-metre-long newbuild Varsovia, offering room for 920 passengers and 2,940 lane metres for cargo, on the ŚwinoujścieYstad crossing on 27 July 2024. The ship, built by Visentini Shipyard in Italy according to a design by NAOS Ship and Boat Design, replaced the company’s Cracovia (650 pax/2,196 lm) and Baltivia (250/1,408). The former went on a charter in the Mediterranean as of 1 July 2024. Polferries has chartered Varsovia for 10 years.

METRANS trials Poland-Ukraine route The intermodal rail arm of HHLA, with the help of Ukrainian Railways, has organised the first train run between Dąbrowa Górnicza and Mostyska. The companies intend to make it a regular service, linking it with other Ukrainian cities, like Kyiv and Odesa (where HHLA runs a container terminal; the company also owns the domestic Ukrainian Intermodal Company).

16 | Baltic Transport Journal | 3-4/2024

Photo: Polferries

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CLdN and Transfennica connect in Zeebrugge Starting from 25 July 2024, Transfennica’s Northern Baltic con-ro & break-bulk service calls at CLdN’s Albert II terminal in the Port of Zeebrugge every other Thursday. The connection in question links the Baltic seaports in Hanko, Kotka, Rauma, and Paldiski with the Port of Antwerp. The companies also share freight loading equipment to maximise transshipment efficiency.

Rail traffic returns to the Ystad-Świnoujście service After a two-year-long stop due to railroad works on the Polish side, railcars can now be again transported by ferries between the two seaports. The first shipment saw the carriage of rail wagon platforms on board Unity Line’s Polonia, which was sent to Poland for repairs.

Wallenius SOL-Stena Line co-op The two Swedish shipping lines have partnered to offer single bookings to/from Latvia to Belgium and England. Specifically, it’s now possible to book Wallenius SOL or Stena Line for the entire route from Liepāja to Tilbury via Travemünde and Antwerp-Bruges. Stena Line is responsible for the Liepāja-Travemünde service, while Wallenius SOL handles the TravemündeAntwerp-Bruges-Tilbury leg. The cargo is kept on the same equipment during transhipment in Germany. “This isn’t just a great service for standardised units; it’s perfect for oversized cargo, too. Instead of dealing with permits and the high costs of trucking large and heavy cargo, we’re making it easy to shift to seaways. This option also significantly reduces emissions,” Kai Peränen, Commercial Manager of Central and East Europe at Wallenius SOL, highlighted.

New intra-Sweden rail service Green Cargo has launched a new connection between Arken Kombiterminal in the Port of Gothenburg and the Port of Norrköping. The service offers daily (overnight) departures Monday through Friday for trailers and containers. “We are seeing an increased demand for combined rail, sea, and road transport. A large volume of goods is currently transported by road in this corridor. In collaboration with the terminals, we aim to offer the market a cost-effective, fast and sustainable transport alternative that strives to reduce its environmental impact,” Matilda Hedström, Strategic Salesperson at Green Cargo, said. Peter Nerheden, Account Manager from DB Cargo FLS Nordic, added, “The new rail solution simplifies our logistics process and offers us a sustainable alternative to truck transport. Our customers want to purchase freight services from a forwarder to effectively coordinate and synchronise communication and slot times. With this new solution from Green Cargo, we can offer our customers a time-efficient and environmentally friendly logistics solution that saves both time and money.”

Scrap metal transports from Sweden to Norway shift from road to sea The Ports of Halland, Stena Recycling, and Hydro Aluminium have partnered to set up a service that carries scrap metal on board ships instead of using trucks. The weekly service connects the Port of Halmstad and Hydro Aluminium’s facilities in Sunndal, Årdal, Høyanger, Husnes, and Karmøy. The previous set-up saw trucks going from Halmstad to Älmhult, where the cargo got smelted before onward transportation to Norway. Whereas the service currently makes use of different berthing places in Halmstad, it will move to the brand-new 12-metre-deep Oceanhamnen once it’s up & running in 2025/2026. “This cooperation plays a central part in the development strategy for the new Oceanhamnen harbour in Halmstad. There, a new 200-metre-long quay together with 21 thousand square metres of yard is being constructed. The new port area is tailor-made for this type of goods handling that comprises containers and bulk cargo,” highlighted Henrik Nanfeldt, the Ports of Halland’s COO. Henning Wiik Tangen, Scrap Purchaser at Hydro Aluminium Metal in Norway, added, “We are very pleased with this sea freight solution from Halmstad, which has just come online. It will decrease CO2 emissions and contribute to Hydro Aluminium achieving its sustainability goals. The Halmstad-Norway by-sea-volume stands for around 600 tonnes less CO2 in 2024.”

Photo: Ports of Halland

18 | Baltic Transport Journal | 3-4/2024

Intermodal traffic in Port of Trelleborg Continued great success for sustainable transports Port of Trelleborg, with the ambition of being Europe’s most sustainable RoRo port, is constantly working on various improvement measures within environment and sustainability. We invest a lot in intermodal transports, i.e. a combination of rail, sea and road, since it is the most sustainable way to get your goods.

Port of Trelleborg has worked to ensure that a larger proportion of trailers and containers choose the train to and from Trelleborg, a work that has had a fantastic development in recent years. In 2023 the increase was 12% compared with the previous year, which means that almost 40,000 trailers have traveled to or from Port of Trelleborg by rail. The port’s unique logistical location, where Europe meets Scandinavia, and with the possibility of combining the transport modes sea, rail and road, is a success factor.

A new modern intermodal terminal By 2033, the forecasts point to 150,000 units. In order to handle this large number, the Port of Trelleborg needs to rebuild the intermodal terminal to improve the handling of intermodal trains and rail connections. Port of Trelleborg works together with the Swedish Transport Administration to reach an agreement regarding a takeover of the old freight railway yard in order to develop and become a modern intermodal terminal. It is our joint hope that such an agreement can be signed around the turn of the year 2024/2025.

Together with our shipping line customers and our partner ports, we can tie together the intermodal solutions to increase the volumes further.

Port of Trelleborg is Scandinavia’s largest RoRo port for rolling traffic, one of Sweden’s five core ports designated as strategically important by the EU and an important part of the European transport corridors. We are also Sweden’s only port with rail ferries. The port is an important node for Sweden’s import and export, and thus has an important meaning and role for the climate transition of freight transports.

www.portoftrelleborg.se

VENTURE FORTH LIEPĀJA-LÜBECK GREEN CO-OP • The two cities and their seaports have teamed up to make the crossing between them more environmentally friendly. The parties will work on decreasing the footprint of the ports’ own operations and energy

consumption, providing means for ship, road, and rail port users to green their activities, and investing in infrastructure and equipment to handle larger vessels. •

CARBON DIOXIDE TERMINAL IN PORI • The City of Pori and the Port of Pori have commissioned Wega to conduct a preliminary study on the construction of an import/ export terminal for handling liquid carbon dioxide. “The CO2 terminal acts as a decisive catalyst in the construction of electric fuel and hydrogen production facilities in Pori. This is also supported by the region’s strong energy infrastructure and renewable energy production capacities that are either already under construction or

on the drawing board, ensuring Pori’s position as a pioneer in the clean transition,” Lauri Inna, the City of Pori’s Mayor, highlighted.

Earlier, the ports of Pori and Raahe have partnered to make sure the right infrastructure and handling capacities are in place so that the development of Finland’s (offshore) wind energy industry isn’t hampered and that renewable energy is available to produce, among others, e-fuels with the use of captured biogenic carbon. •

KEMI SECURES EU FUNDING • The Finnish seaport will receive money from the EU’s Connecting Europe Facility within the 23-FI-TG-Arctic SSE project to set up an onshore power supply facility on the new autumn 2023-opened

quay. Once the investment is up and running, two ships will be able to draw power from the shore concurrently. •

TWIN-PORT VI GETS EU MONEY • The ports of Helsinki and Tallinn have yet again secured financial backing from the EU, this time some €15.4 million for, among others, reducing emissions from shipping in their cargo harbours.

The total budget of TWIN-PORT VI amounts to €30.8m, of which Tallinn will contribute €20.3m and Helsinki €10.5m. The EU-supported investments will include onshore power supply facilities in Tallinn’s Muuga and Helsinki’s Vuosaari harbours. “The Port of Helsinki’s

investments will reduce emissions and improve the efficiency of both passenger and freight transport. The approximately 5.2 million euros in EU support we have now received is important for carrying out our investments. It also shows that the goals of our projects are in line with the development goals of European transport systems,” underscored Pekka Meronen, Vice President – Finance, ICT and Development at the Port of Helsinki. •

RØNNE CHOSEN AS BALTIC POWER’S INSTALLATION PORT • The Danish seaport will help to set up ORLEN and Northland Power’s 1.2-gigawatt offshore wind energy farm in the Baltic. The investment, located some 150 km east of the island of Bornholm, will comprise 76 turbines of Vestas’ V236-15.0MW model to be mounted in 2025. “ We are thrilled and proud that we will now also be the installation

port for a Polish wind turbine project and even the first of its kind in the Baltic Sea with the brand new 15MW wind turbine from Vestas.

We take it as a sign that we have strengthened the Port of Rønne’s position as the Baltic Sea’s centre for green energy,” Jeppe la Cour, the Danish seaport’s CCO, commented. •

LHYFE GETS FUNDS FOR ITS HYDROGEN PROJECT IN TRELLEBORG • Climate Leap, an investment programme of the Swedish Environmental Protection Agency, has awarded up to SEK125.6 million (€11m) for the French company’s 10-megawatt production plant in Southern Sweden. Once potentially up & running in 2027, the Trelleborg site will produce up to four tonnes of green hydrogen per day. The grant – which will fund the development & design phases, the supply of equipment, and the construction work – represents about 40% of the total estimated investment in the

project (the implementation of which is subject to the granting of operating authorizations and construction permits, as well as to financial investment decisions). “We are very happy to have been awarded this grant, which is the first project we have been granted subsidies for in Sweden and which we see as a clear reward for our efforts and as the recognition of our expertise in the production and delivery of green hydrogen to multiples customers over the last two years,” said Sara Wihlborg, Country Manager Sweden at Lhyfe. •

SRC-GREEN MARINE METHANOL CO-OP • The two have partnered to promote the use of methanol as a marine fuel by encouraging the uptake of SRC’s Methanol Superstorage. “Using the SPS Technology Sandwich Plate System instead of traditional cofferdams that separate tank walls, Methanol Superstorage boosts shipboard tank volumes by 85% and provides effective mitigation for methanol’s significantly lower energy density than conventional 20 | Baltic Transport Journal | 3-4/2024

HFO [heavy fuel oil],” the parties underlined in a press brief. GREEN MARINE will use its expertise in delivering methanol solutions for all vessel segments (including ship design, yard selection, construction supervision, technical management and operations, training, procurement, sales, and bunkering) to further develop and deliver SRC’s Methanol Superstorage to the market. •

VENTURE FORTH RWE’S TWO OWE MOUS IN THE BALTIC • First, the energy company has signed a memorandum of understanding (MoU) with the Port of Karlshamn aimed at scrutinising the latter’s role in serving future offshore wind energy (OWE) farms in the Baltic. Specifically, the collaboration will explore whether the Port of Karlshamn could be a suitable harbour for logistics, installation, operational and maintenance activities related to RWE’s planned offshore wind projects in the region. In the first step, the partners will map the requirements and necessary build-outs and investments to facilitate the scaling-up of the port’s capacity. “Port capacity and a sustainable supply chain industry are key to the deployment of offshore wind projects. And a new offshore wind farm has the potential to transform a nearby harbour into a dynamic hub that significantly catalyses growth, infrastructure, jobs, and economic benefits for the region. That is why we are looking forward to collaborating with the Port of Karlshamn to evaluate their potential as a future offshore wind hub,” commented Matilda Machacek, Vice President of Offshore Development Nordics at RWE Offshore Wind.

To this, Anton Andersson, Project Lead at RWE Renewables Sweden, added, “Our Kårehamn Offshore Wind farm [48MW off the island of Öland commissioned in 2013] is a great example also for harbour development. It has been reliably generating green electricity for thousands of Swedish homes for more than a decade. Thanks to the wind farm, the old fishing harbour has been revitalised. Based on this success, RWE plans to build more offshore wind farms in the Baltic Sea.” Caroline Säfström, the Port of Karlshamn’s CEO, underlined, “The Port of Karlshamn is proud that RWE, one of the world’s leading offshore wind companies, is supporting us in our

plans to become a hub for offshore wind. With its natural, deep harbour and large shipyard, the Port of Karlshamn is well- positioned to meet the future needs of the offshore wind industry in the Baltic Sea. We recognise the demand for port capacity related to offshore wind energy, including after-sales services such as maintenance and operations centres. Expanding the port’s product portfolio in this direction is a natural step given our previous experience with wind energy projects and logistics.” She furthered, “By establishing itself as a hub for offshore wind energy, the Port of Karlshamn is also creating employment opportunities for the region and promoting business opportunities for local companies and suppliers, thus contributing to the economic development of the area and strengthening the local economy.” Shortly afterwards, RWE signed a similar MoU with Smålandshamnar. Niclas Strömqvist, CEO of the Swedish port authority, underscored, “The Port of Oskarshamn is already one of the leading harbours in Sweden for the transport and handling of onshore wind components. We are proud that RWE, one of the world’s leading companies in offshore wind, has taken note of our port and our expertise and supports our plans to become a hub for offshore wind, too. The Port of Oskarshamn is strategically positioned in the Baltic Sea and offers very good conditions and opportunities to meet the needs of future players in offshore wind power. Experience from other ports shows that the offshore wind industry is an employment accelerator that creates growth in the business community and, thus, the conditions for jobs and migration to the area. This will benefit not only Oskarshamn but also the region, Sweden and the green transition.” •

3-4/2024 | Baltic Transport Journal | 21

VENTURE FORTH CLIMATE COMPENSATION ALSO AVAILABLE FOR PASSENGERS • Wasaline has made it possible also for private travellers to pay a nominal voluntary fee when crossing between Umeå and Vaasa on board the company’s Aurora Botnia ferry. The climate compensation scheme, earlier introduced for cargo customers, is used to buy bioliquefied natural gas to propel the vessel. “By operating with biogas and batteries, the journey is climate neutral. Since Aurora Botnia entered traffic, we have reduced CO2 emissions by 27.1% and last year (2023),

10% of our journeys were operated with biogas. The goal for 2024 is to reduce our CO2 footprint by 15%,” highlighted Peter Ståhlberg, Wasaline’s Managing Director. The company also offers intermodal transports from Umeå to Gothenburg and Trelleborg to cut overland emissions of the (wheeled cargo) transportation sector. Together with Kvarken Ports, the port company managing Umeå and Vaasa, Wasaline works towards making the crossing a Green Shipping Corridor by 2030. •

ELECTRIC 4X4 RO-RO TRACTORS – UNDER DEVELOPMENT • MOL and Volvo Penta are trialling the RME225 terminal tractor, featuring three battery packs (270kWh in total), an EPT802 gearbox, two 200kW propulsion motors, and a separate 50kW one to power the hydraulic system and the fifth wheel. “The technical progress achieved through our collaboration with Volvo Penta in creating the full electric 4x4 RME225 terminal tractor demonstrates our efforts to expand our range of new emission-free vehicles specifically for the rigorous needs of heavy-duty port equipment. We’re ensuring that it performs reliably, efficiently, and effectively in real-life operational scenarios,” commented Conrad Verplancke, Sales Engineer, MOL. Jeroen Overvelde, Area Sales Manager, Volvo Penta, added, “The value of electrification extends beyond the

initial technology investment. The full electric tractor matches its diesel counterparts in performance, with potentially higher acceleration rates and available torque on the RME225. Success hinges on delivering superior performance and optimising total cost of ownership.” According to the parties, electrifying a terminal tractor reduces tailpipe emissions, hence air pollution. An electric drivetrain can also lower vibrations, creating a more pleasant and quieter working environment. Raf De Wit, Terminal Director at DFDS’ terminal in the Port of Ghent (where the trial is being carried out), said in this regard, “This is in line with our efforts to decarbonise our land-based activities, improve the working environment, and increase the efficiency of our port operations.” •

QTAGG TO DIGITALISE DANIELLE CASANOVA • The Swedish tech company from Västerås will equip Corsica Linea’s largest ferry with EcoPilot, an automated eco-sailing system that uses weather forecasts and ship data to calculate the best power plan for a route and a set arrival time. “EcoPilot achieves fuel savings through three main methods: firstly, it automatically executes optimised power plans, keeping the load on the engine constant. Secondly, it prevents instances of ‘hurry up and wait’ and, thirdly, by adapting quickly to changing conditions, ensuring vessels arrive just in time, thus avoiding unnecessary fuel consumption,” explained Per Österberg, CCO at Qtagg. Danielle Casanova will also get the new DEGO IV engine governors, new ASAC actuators, and a new pitch control system. The

EcoPilot power routing system comes with a 3% fuel consumption reduction guarantee, but the expected (conservative-calculation) savings for Danielle Casanova are in the interval of 6-8%. Qtagg says that for shorter voyages, like the trip between Calais and Dover lasting 90 minutes, they’ve observed savings of up to 20% (equating to over €500 thousand/year saved on bunker). The actual fuel reduction will be determined by a four/five-week test period after commissioning.

Qtagg will compare this against a baseline from a reference period where the ship operates without EcoPilot. A statistical analysis will confirm the comparison to compensate for any influence from varying environmental, load, and speed conditions. •

LAKEWAY LINK-SCANOCEAN ECO-FUEL DEAL • The Swedish shipping line, which started a ro-ro service between Gdynia and Södertälje this spring, will see its Lakeway Express tanked with ScanOcean’s B15-DMA, a marine fuel with 15% renewable content.

The bunkering operations of the ISO 8217-compatible and ISCC-EUcertified fuel will take place in the Port of Södertälje. “Our decision to

partner with ScanOcean and begin using the B15-DMA fuel is a pivotal step in the journey towards reducing our environmental impact. This initiative not only aligns with our sustainability goals but also sets a new standard in the maritime industry for environmental responsibility,” Fredrik Hermansson, CEO of Lakeway Link, commented. •

GROKE SELLS TO GREECE • The Finland-headquartered tech company will supply, install, and commission its Groke Pro Situational Awareness System to a pair of bulk carriers operated by a Greek shipowner. The order is for a 60,960-tonne deadweight geared bulk carrier and a slightly smaller ultramax vessel, which will receive the complete Groke Pro package. The sensor unit, to be installed atop the bulkers’ monkey deck, will house two cameras: a thermal night and a day one, as well as IMU, Dual GNSS, and AIS receivers. “Powered by a central unit installed inside the vessel, artificial intelligence and machine vision technologies are used to detect and analyse objects in the vessel’s surroundings. Sensor fusion technology melds data from multiple sources to provide a superior situational awareness, day or 22 | Baltic Transport Journal | 3-4/2024

night,” Groke Technologies explained in a press brief. The company furthered, “For the bridge of each vessel, a 27-inch fixed display unit will be installed in addition to iPad Pro-based tablets running the user interface. Groke Fleet, a new solution for fleet managers shoreside, will also be included in the package.” According to Groke Technologies, the installation and commissioning process takes one day, all the while the vessel is operational. “One feature that elevates Groke Pro from a digital watchkeeper to an intelligent companion is its real-time risk analysis capability. This presents the crew with crucial as-it-happens information about the vessel’s surroundings on which to base navigational decisions,” Groke Technologies further underlined. •

VENTURE FORTH ANTWERP-BRUGES JOINS THE BELGIUM-SWEDEN GREEN CORRIDOR • The two Belgian ports have become part of the initiative launched in 2022 by DFDS, North Sea Port, and the Port of Gothenburg. The parties are working on making the 2,500-kilometre-long crossing as environmentally friendly as possible, including the launch of two ammonia-run ro-ros by 2030 (a part of DFDS’s ambition to have six low- and near-zero-emission vessels in operation by the end of this decade). E-trucks and rail will serve hinterland traffic, while berthed ships will have the possibility to draw power from the shore. “DFDS has applied for funding for a total of four ammonia-fuelled vessels and, if the funding is granted, the project including electrification in the ports is expected to reduce 328,000 tonnes

CO2e emissions per year corresponding to around 11% of DFDS’ scope 1 greenhouse gas emissions compared to 2023,” the Danish shipping & logistics company highlighted in a press release. Patrik Benrick, Head of Strategic Development & Innovation at the Port of Gothenburg, also commented, “The Port of Gothenburg is already in the early stages of developing operating regulations for safe and efficient handling and bunkering of ammonia-propelled vessels. We are also working on establishing an ammonia value chain, with the purpose of being able to facilitate everything needed for ammonia-run vessels calling and bunkering in the port on a regular basis in 2030 and beyond.” •

SIEMENS GAMESA TO GROW IN DENMARK • The company will receive DKK 162.2 million (around €27.4m) from the Danish Green Investment Fund to expand its blade factory in the Port of Aalborg’s East Harbour. The Aalborg City Council has completed the

local development plan, according to which Siemens Gamesa’s premises in the Danish seaport will grow by 400,000 square metres for storing blades for the wind energy industry. •

WORLD’S FIRST METHANOL-POWERED SOV FOR OFFSHORE WIND FARMS – LAUNCHED • The Danish Esvagt saw the launching of its latest service operations vessel (SOV) at the Turkish Cemre Shipyard. The 2022-ordered SOV will be handed over at the end of this year. The dual-fuel ship, also equipped with batteries, will serve Ørsted’s 1.32-gigawatt (165 8.0-megawatt turbines)

Hornsea 2 offshore wind energy farm 89 kilometres off the Yorkshire coast.

If fuelled and running on e-methanol, produced with renewables and biogenic carbon, the newbuild will have its annual footprint reduced by some 4,500 tonnes of CO2 vs. when bunkered with fossil fuel. •

BALTIC TOWERS’ OFFSHORE WIND TOWER FACTORY – UNDER CONSTRUCTION • The company, a co-op between the Polish Industrial Development Agency and the Spanish GRI Renewable Industries, has laid the foundation stone for the 150 towers/year production plant on the Ostrów Island

in Gdańsk. The factory, putting together towers for 15 megawatts (and stronger) turbines, is expected to come online in Q2 2025. It will provide 500 highly specialised jobs. •

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VENTURE FORTH M.H. SIMONSEN ORDERS METHANOL-RUN SHIPS • The Danish shipowner has entrusted the Chinese New Jiangzhou Shipbuilding with delivering eight dual-fuel chemical tankers. The shipbuilder, which also provided the tanker design, will supply the

6,800-tonne deadweight vessels in 2026. The newbuilds will join M.H. Simonsen’s fleet of 14 chemical tankers (primarily used for shipping vegetable edible oils in Europe). •

CMP-GREEN2X BIOFUEL CO-OP • The Danish-Swedish port authority has partnered with the Hellerupbased company that wants to turn biomass waste into bioenergy to scrutinise the set-up of a biofuel plant in Malmö. The parties will kick off the works with a pilot study, which will also include securing relevant permits. If everything goes according to the plan, the facility should be up & running by 2030. “Green2x’s technology extracts energy from the straw that remains after harvesting, which enables the production of green energy on a whole new scale because the straw contains a lot of energy, and this technology enables more than 95% of it to be recovered,” reads the companies’ press release. “We are incredibly pleased to join this exciting partnership with CMP and the City of Malmö. Green2x’s strategic plans are now

accelerating, supporting our ambitions to become an international green fuel producer very rapidly. The location in Malmö opens doors to enormous potential. This gives us a unique opportunity to strengthen cooperation with the shipping industry, among others,” commented Mikkel Sjølin Kiil, CEO, Green2x. He furthered, “At the same time, we use the geographical synergies with our plant in Vordingborg, especially when it comes to sourcing large quantities of straw. The tempo, market interest and ambitions are high, and it is gratifying that the next step will be in collaboration with CMP and the City of Malmö.” Green2x has recently obtained a permit for the establishment of its first plant in the Danish Port of Vordingborg, with the start of production scheduled for 2027. •

ÖRESUNDSLINJEN TO ELECTRIFY HAMLET • The ferry line, a subsidiary of the Danish Molslinjen, will retrofit the ferry operating across the Helsingør-Helsingborg crossing to sail on battery power instead of fossil bunker. The Swedish Echandia will deliver the battery system, scheduled to take place in H1 2025. It will be tailored for a minimum lifespan of 10 years without requiring battery replacement. Recharging will take 11 minutes on average.

Hamlet makes some 8,000 trips annually. It will be Öresundslinjen’s third ferry running on electricity after Tycho Brahe and Aurora (both have 4.16MWh systems). Echandia will also supply two other battery packs for other of Molslinjen’s daughter companies’ ferries: Nerthus will get 3.1MW for serving the Fynshav-Bøjden route while Tyrfing 3.8MW for the longer Ballen-Kalundborg link. •

BALTIC EAGLE’S TURBINE INSTALLATION SETS OFF • Fred. Olsen Windcarrier’s jack-up vessel Blue Tern has erected the first turbine of Iberdrola and Masdar’s JV 476-megawatt offshore wind energy (OWE) project. The investment is scheduled for completion by 2024’s end after setting up 50 wind turbines of

Vestas’ V174-9.5MW model. The project is being carried out from the German Baltic Mukran Port. Together with the already operational 350MW Wikinger and the planned 315MW Windanker OWE farms, Baltic Eagle forms Iberdrola 1.1GW Baltic Hub. •

VÄNERHAMN INVESTS IN PV • The Swedish port company, which manages five harbours on Vänern (the EU’s largest lake), will install 1,000 square metres of photovoltaics (PV) in Otterbäcken. The system will be located on a warehouse roof and produce 181,000kWh per year (some 40% of

the port’s annual consumption). The installation is expected to be ready by the end of this summer. Since 2020, there has already been another PV system up & running in Vänerhamn’s Karlstad, having generated 850,000kWh towards the end of April 2024. •

UPM-VR HVO CO-OP • UPM Plywood has reached a deal with VR, the Finnish national rail freight haulier, to replace fossil diesel with hydrotreated vegetable oil (HVO) for shipments from the UPM Pellos mill. The fuel swap, coupled with a new operating model (increasing the train filling rate and using one instead of two locomotives), will reduce the total emissions of the WISA® plywood transport in Finland by 24%. The mill in question is in

Ristiina, with its output rail-carried to Kouvola and the Port of Kotka.

“Only about 60% of Finland’s rail network is electrified, so it is necessary to find other responsible alternatives to electricity. This is the first HVO contract for VR’s rail logistics, which will bring the customer’s transport emissions to almost zero. HVO […] is also produced from crude tall oil by UPM Biofuels at its Lappeenranta refinery,” UPM shared in a press brief. •

PREEM SELECTS SEABER • The fuel company from Sweden will use the Finnish tech firm’s schedule optimisation software to reduce shipping emissions by increasing the vessel utilisation rate. Preem schedules and executes over 1,000 voyages annually, including via time-chartered vessels, contracts of affreightment, and spot contracts. “Seaber’s proven optimisation technology will help develop our logistics and shipping 24 | Baltic Transport Journal | 3-4/2024

operations. We are looking to get an extremely fast return on investment that will have a direct impact on reducing Preem’s emissions and costs. Seaber’s software will complement and unite our logistics process by digitalising our schedule planning,” Daniel Berndolf, Preem’s Manager of Shipping, Supply & Trading, commented. •

WHAT’S IN THE CABINET CEF turns 10 years To celebrate the 10 th anniversary of setting in motion the Connecting Europe Facility (CEF), the European Climate, Infrastructure and Environment Executive Agency has set up the Greener Transport Infrastructure for Europe interactive map webpage that showcases how CEF projects have contributed to the development of EU’s transport sector. “Focus areas are railway

transport and ERTMS [the European Rail Traffic Management System], inland waterways, ports and alternative fuels, with the overall objective to demonstrate how EU investments throughout the years are having a positive impact on the continent’s transport networks, yielding concrete benefits for businesses and citizens alike,” said the European Commission in a press release.

Shipping e-fuels observatory The Transport & Environment NGO from Brussels has also launched an interactive map, this one presenting e-fuel (green hydrogen, biofuels, e-ammonia, e-methanol) production sites (planned and operational)

across Europe, including ones dedicated to shipping. The observatory dissects supply & demand issues, also in how much e-fuels will be needed to green the business of carrying goods & passengers by ship.

One billion euros for alternative fuels On that topic, the European Commission has proposed to invest one billion euros in alternative fuels infrastructure, through the Alternative Fuels Infrastructure Facility, along the TransEuropean Transport Network (TEN-T) to reach the objectives set in, among others, the FuelEU Maritime Regulation. The call

for proposals’ support will include electricity recharging points (also megawatt ones for heavy-duty e-vehicles), hydrogen refuelling stations, and ammonia and methanol port bunkering facilities. There are three cut-off dates for submitting applications: 24 September 2024, 11 June 2025, and 17 December 2025.

TEN-T – updated Having mentioned TEN-T, the European Parliament and the European Council gave their green light to the revised Regulation that underpins the network. In general, the TEN-T is to become more sustainable, digitalised, and multimodal, as well as to facilitate military mobility. Among many, the new TEN-T will see the deployment of the European Rail Traffic Management System across its entirety (meaning that national legacy class B systems will be phased out), the set-up of new freight terminals (able to accommodate 740-metrelong trains), the creation of the European maritime space (translating into infrastructure and service development, likewise better alignment with other transport modes), and the establishment of

European Transport Corridors with non-EU European countries: EU’s six Balkan partners as well as Moldova and Ukraine. The TEN-T Core Network is to be ready in 2030, its extended version ten years later, and the Comprehensive Network by mid-century. “The TEN-T is a key instrument of the EU’s transport policy with a huge contribution to our sustainable mobility objectives, as well as to economic, social, and territorial cohesion. The adoption of the revised Regulation is a milestone towards a sustainable and resilient transport network in Europe, which should address the mobility concerns of our citizens and businesses for the years to come,” underscored Georges Gilkinet, Belgian Deputy Prime Minister and the country’s Minister of Mobility.

CEF invests in EU-Ukraine rail infrastructure Regarding the bloc’s ties with Ukraine, Ukrainian Railways (UZ) have announced an investment portfolio of €85.9 million, of which €42.9m will come from EU’s Connecting Europe Facility, to develop the country’s westwards standard 1,435 mm rail network. Specifically, the funds will be channelled towards Lviv’s connections with Chop (going further to Slovakia and Hungary) and Vadul-Siret (Romania); the electrification of Uzhhorod’s rail link with Chop; and the design of an electrified track between

Uzhhorod and the Slovakian Maťovské Vojkovce. Funds will also go into assessing the technical specification for interoperability of the mentioned lines as well as two others en route to Poland: Kovel-Yahodyn-Dorohusk and Lviv-Medyka. Yevhen Lyashchenko, Chairperson of UZ’s Board, commented, “Ukraine continues its European integration path and has systemic support from the EU. Thus, for the second year in a row, CEF is allocating funds for the implementation of strategic infrastructure projects.”

Sweden to ban scrubber discharge in water Alike Denmark and Finland in the Baltic, also the Swedish cabinet has put forward a proposal to ban discharging scrubber water in its territorial waters: from open-loop systems as early as 1 July next year and starting 1 January 2029 from all other scrubber types. The Swedish Chalmers University of Technology estimates that over 200 million cubic metres of environmentally hazardous scrubber water are discharged into the Baltic Sea annually (apart from washed-out sulphur, heavy 26 | Baltic Transport Journal | 3-4/2024

metals and oil residues have been found in the discharge wastewater).

“Hopefully, these national bans will fuel discussions on regional bans in the Baltic, the Northeast Atlantic, and the entire EU. The International Maritime Organization needs to move forward on this topic as well, although I think a global ban is quite a few steps away. There are intermediate steps to take, nevertheless,” commented Mattias Rust, Deputy Director at the Swedish Ministry of Rural Affairs and Infrastructure.

WHAT’S IN THE CABINET The Maritime Entrepreneurship project kicks off With the help of the Danish Maritime Foundation, the Odenseheadquartered Foundation for Entrepreneurship has launched the May 2024-April 2027 initiative, with Pernille Berg, its Research and Programmes Director, explaining the move: “In Denmark, we have a wealth of talented, innovative and curious young people, but unfortunately very few of them know about the opportunities within the maritime sector. With Maritime Entrepreneurship, our noblest task is to release the huge potential that lies in getting more young people to open their eyes to the industry. We want to ensure that they meet some fantastic role models and that the maritime sector sees that young people have the innovative power needed to develop the industry. It must create fertile ground for

even more maritime entrepreneurship that can contribute to the development of new and innovative solutions.” The Foundation for Entrepreneurship added in a press brief, “There is Danish equipment on virtually all ocean-going ships in the world […], but for Denmark to secure its place at the forefront of the maritime industry’s green transition, employees with an entrepreneurial mindset from all disciplines are needed to ensure future innovation. […]

We cannot wait for ‘the perfect solution,’ but must act where we can and work to improve the existing ones. Fortunately, there is already a growing focus on cross-disciplinary and professional work on the courses, and young people are interested in creating green, sustainable, and simple solutions that can be scaled […].”

Cross-border carbon co-op Belgium, Denmark, and the Netherlands have inked agreements with Norway and Sweden to enable the transport of carbon dioxide to underground storage. “CO2 capture and storage are two important necessary tools we need to achieve our Danish and European climate goals. Therefore, we must ensure a climate policy that goes beyond Denmark’s borders, and we do this when the agreements open up for cross-border cooperation on CO2 capture and storage. We need to utilise the various resources and experiences we have across Europe so we can scale up CO2 capture and storage and get the difficult emissions

stored underground,” said Lars Aagaard, Denmark’s Minister for Climate, Energy, and Utilities. Jacob K. Clasen, Deputy CEO at Danish Shipping, also commented, “When it comes to capturing and storing CO2 underground, Denmark is right at the forefront. It is very positive that the Danish government is also proactive in establishing agreements with our neighbouring countries, which can contribute to scaling up the entire CO2 sector and establishing the necessary infrastructure. At Danish Shipping, we have members ready with the ships that will help transport CO2. All this can help make Denmark an important European CO2 hub.”

Photo: CopenHill

3-4/2024 | Baltic Transport Journal | 27

CHART OF THE ISSUE

28 | Baltic Transport Journal | 3-4/2024

BTJ Trip 2024 / Finnlines’ Malmö-Świnoujście ferry service

The new (sailing) bridge for trade & tourism

by Przemysław Myszka and Przemysław Opłocki This year’s BTJ Trip season kicked off on Monday, the 27th of May, when we boarded a morning train in Gdynia heading for Szczecin. Destination: Euro Terminal in the Port of Świnoujście, from where Finnlines’ Sweden-flagged ferry Finnfellow sails to & from the Port of Malmö daily as of 10 April 2024.

It demanded great patience (counting four-five in years) from the Finnish shipping line to launch the crossing, but here it is finally! Finnlines invited us to get a taste of the new service as well as to partake in the official ribbon-cutting ceremony aboard the vessel on 28 May.

Photo: CMP

I

n Szczecin, we rented a car as the service currently requires a vehicle to make use of it. It gave us the opportunity to contemplate West Pomeranian nature en route to Świnoujście (including a rampaging thunderstorm…). At the same time, we had to cope with the heavy road construction works along the way; then again, wheeled 30 | Baltic Transport Journal | 3-4/2024

traffic will certainly get smoother on the north-south axis once everything’s done, something Świnoujście’s ferry cargo flows will only benefit from.

Sun welcomed us at Euro Terminal, where we had to wait for a check-in. Two things were immediately visible when we parked near the facility. First, the Malmö-Świnoujście

is a classic Finnlines’ business: focused on freight (the 188.3-metre-long Finnfellow offers 3,099 lane metres of capacity). The parking area was filled with trucks (also meaning that accompanied traffic dominates the route, in contrast to, as we saw on the Swedish side, the company’s Malmö-Travemünde service, whose Finntrader was loaded mainly

BTJ TRIP

Photo: Finnlines

with trailers the next day). Second, there were just a few private vehicles (including one with a cat, as Finnfellow is pet-friendly, with suitable cabins – and a sizeable litter tray outside one of the decks). That said, more of the latter joined in Malmö, among which one was with a Nor-

wegian number plate (making us wonder whether the couple who drove it was on a road-ferry trip, which sounds like an interesting alternative to flying between Norway and Poland, also from an environmental point of view as the car was electric).

Although we arrived earlier at the terminal than needed and had to wait some time, we received our boarding cards and were guided to our place on board Finnfellow (to park in a safe spot, as we were the only ones not disembarking in Sweden). By coincidence

Photo: Przemysław Myszka

3-4/2024 | Baltic Transport Journal | 31

BTJ TRIP

Photos: Przemysław Myszka

(probably not), our cabins were located at the very front of the ferry’s bow, which made the porthole view even more impressive (especially when the vessel’s loudspeakers woke us in the morning the next day with the Øresund/Öresund Bridge in close sight).

We have already had the occasion to sail between Poland and Sweden on other companies’ ships and can testify that, although Finnfellow is 24 years old, the cabins are very fresh and spacious. The ferry offers room for 440 passengers across over 180 cabins of six

32 | Baltic Transport Journal | 3-4/2024

different categories (from 8.0 through 11 m2, with and without portholes, up to 21 m2).

We can also state that Finnfellow’s kitchen staff doesn’t have to be ashamed of anything: the dining offer is appreciably decent (and unlimited, so nobody should leave the restaurant still feeling half-hungry).

Apart from a small duty-free shop, a piratethemed children’s play area, a conference room, and a few slot machines, Finnfellow has got the thing that makes it a truly Nordic ferry: a Finnish sauna (two to be precise:

for men and women). Without a doubt, a relaxing visit to it was the highlight on Tuesday after the press brief. Curiously enough, the sauna was unoccupied at the moment of our arrival. We ‘blame’ it on culture: saunas are (regrettably) still very much a foreign concept to Poles. That said, a Polish-speaking fellow later joined us, but judging from his accent, he was, in all probability, from a country east of Poland (so from the banya culture, so to speak). Anyhow, the man had with him a bottle of mint oil-infused water to pour

BTJ TRIP

Photo: Przemysław Myszka

over the blistering rocks – now that’s some experienced insighter sauna know-how!

After the steam bath and a hearty meal on a Tuesday evening, we disembarked Finnfellow as smoothly as we boarded it the day before. A late road cruise awaited us, luckily, this time without heavy rain thundering rampantly against the car’s roof. After another sleepover, the first BTJ Trip in 2024 ended with a train ride back to Northcentral Poland.

Photo: Finnlines

Tuesday ribbon cutting Finnlines used the brief span of time after arrival in Sweden on Tuesday morning to host an official inauguration of the MalmöŚwinoujście ferry service. Jesper Axelsson, Captain of Finnfellow, kicked off the meeting by presenting the ferry’s particulars. Next was Tom Pippingsköld, President and CEO of Finnlines, who underlined, “First of all, I would like to thank everyone who came to celebrate with us. With our new direct connection to Poland, we have opened up for new opportunities in trade and tourism. We are proud to secure an important trade route between Malmö and West Pomerania in Poland and, at the same time, contribute to a pleasant travel environment for both business and leisure travellers.”

Katrin Stjernfeldt Jammeh, Mayor of the Malmö Municipality, topped things off by saying, “Malmö is Sweden’s bridge to the rest of the world. With Finnlines’ new maritime connection across the Baltic Sea to Poland, our city’s position is further strengthened.”

Once the speeches were over, the trio cut the Swedish-Polish ribbons. After that, there was still time to chat, including with Antonio Raimo, Finnlines’ Line Manager, and Marco Palmu, the shipping line’s Head of Passenger

Photo: Canva

Services. Others also offered their comments on the new service. Katarzyna Buława, CEO of Euro Terminal, said, “The new connection is a response to market demand. The inauguration of the new route will strengthen the position of the Świnoujście Port as the main gateway connecting Poland and Sweden.

We strongly believe that the new service will enable optimisation of transport and provide added benefits for business and travellers alike. We are pleased to move this service forward together with Finnlines and look forward to further development.” Barbara Scheel Agersnap, CEO, Copenhagen Malmö Port, also stressed, “Finnlines is a long-standing and very important partner to the port, and we are pleased that the cooperation has

now been deepened. With the new route between Malmö and Świnoujście, a large and growing market is opened up, which also creates opportunities for other activities in the port area and for the development of intermodal transport in the port.”

When everybody else left, we stayed to discover other nooks and crannies of Finnfellow. Thanks to buddying up with the crew, we had the chance to enter the captain’s bridge just as the ferry approached the Øresund/ Öresund Bridge (we could also go outside and admire the view from the spectacularly windy uppermost deck). Back inside, we got to know the ship’s firefighting system, including the anti-fire grenades (but with no demonstration, of course). After that, it was sauna time!

3-4/2024 | Baltic Transport Journal | 33

Interview with Tom Pippingsköld, President and CEO, Finnlines

Coming a long way

by Przemysław Opłocki Last year, we participated in launching Finnsirius, one of Finnlines’ two brand-new cruise ferries, while the first BTJ Trip of 2024 brought us on board Finnfellow to try the company’s recently put in motion Malmö-Świnoujście service. We also had the opportunity to ask Tom Pippingsköld, the man at the helm of Finnlines, a few questions about, apart from the above, the shipping line’s latest performance, how it sailed through the rough waters of the coronavirus pandemic, and what’s on Finnlines’ green agenda.

How did Finnlines perform in 2023 on the cargo & passenger fronts? How would you grade the performance for the first six months of this year?

Last year, Finnlines transported 710,000 cargo units, shipped 157,000 cars, and carried 1,344,000 tonnes of non-unitised freight. In total, 695,000 passengers travelled with us. Overall, Finnlines handles one-third of the one million trucks that transport goods between Finland, Sweden, and Continental Europe every year.

The volumes for the first half of this year were strong, showing solid performance across all metrics. From January to June, Finnlines transported 400,000 cargo units, 47,000 vehicles, and 658,000 tonnes of nonunitised freight. We served markedly more private and commercial passengers, plus 103,000 up to 409,000. The number of private travellers more than doubled on the route between Finland and Sweden via the Åland Islands (Naantali-Långnäs-Kapellskär) after introducing two new Superstar cruise ferries, Finnsirius last autumn and Finncanopus at the beginning of 2024.

What are the factors influencing both types of traffic the most? What moves the markets forward? On the flip side, what are the major hurdles Finnlines is dealing with right now?

34 | Baltic Transport Journal | 3-4/2024

Several factors influence both freight and passenger traffic significantly. Concerning the former, key elements include economic conditions, trade policies, and technological innovations in logistics. In addition, fuel prices and regulatory changes play a crucial role. Especially in environmental matters, authorities have introduced many new regulations in recent years. While we welcome these changes, they can also present compliance challenges and generate costs.

For passenger traffic, factors like tourism trends, seasonal variations, and consumer confidence are critical.

We have seen how high interest rates have impacted both industrial activity and private consumption. Markets are primarily driven by economic growth and consumer demand. Therefore, the European Central Bank should continue to rapidly lower interest rates to stimulate industrial activity and economic growth in the EU. In Finnlines, we also see that technological innovations that increase efficiency and reduce costs can drive the market forward.

Environmental compliance and energy transition are our main future challenges.

We have invested massively in the sustainability of our fleet, some half a billion euros in two cruise ferries and three ultra-modern ro-ros, thereby reducing our impact on the environment. These vessels, the Superstars and the Eco-series, can carry

more cargo on less fuel than the previous generations – slashing emissions per transported cargo unit.

More broadly, how did Finnlines sail through COVID and the few years past the pandemic? What are the things Finnlines has in their near-to-long-term focus?

The financial years 2020 and 2021 were tough periods for many shipping companies, including Finnlines. Although freight volumes recovered quickly, everchanging travel restrictions challenged the passenger business. In addition, state aid was distributed to many carriers – but not to Finnlines – although we ensured essential supplies were imported and exported throughout the pandemic. This distorted the market and disturbed the competition. Notwithstanding the foregoing, Finnlines sailed successfully through COVID-19 thanks to our flexibility and agility based on in-depth industry knowledge.

As a result, we maintained feasible profitability through the crisis.

We have come a long way with diversification, from an operation once being based mainly on Finland’s exports and imports, and thus on the (sometimes metronome-like) Finnish economy, to today also being present on corridors that are

BTJ TRIP

not connected directly to Finland. In 2022, the Zeebrugge-Rosslare connection was launched, establishing itself well in the market. At the beginning of this year, we connected Vigo and Zeebrugge, ensuring Spain’s sea access to this important hub for European industries. Finally, on 10 April 2024, the new ro-pax line was opened between Malmö and Świnoujście.

Post-corona, I can confidently state that Finnlines is well-prepared to face the fastmoving market. Thanks to the new ships, all equipped with many energy-saving and advanced green technologies, we can reduce our older tonnage and cut our costs for greater efficiency and improved logistics service. We are also seeking further improvement by adjusting our fleet operations so that we can combine cargo flows more efficiently and fully utilise the economies of scale of our vessels and the entire fleet. This also includes that we sell ships that have too small capacity and/ or no longer fulfil our environmental requirements.

Looking ahead, we are dedicated to operational excellence and sustainable shipping, which will benefit both our customers and us. Finnlines’ next newbuilding orders will feature improved environmental and technical efficiencies as well as make use of alternative (read: greener) fuels. We have consistently invested in new vessels and increased our capacity in the Baltic, Biscay and the North Sea traffics, and we will continue our commitment to the green transition.

Can you share the details behind launching the Malmö-Świnoujście ferry service? What expectations, volume-wise, do you have for this route for 2024 – and beyond?

We had been preparing to launch a new line between Poland and Sweden for quite some time. We picked Finnfellow as the best choice for the route to carry both freight and passengers. Staff got recruited for the Świnoujście office and on board. Finally, in early April, we successfully opened the new crossing.

Finnlines’ new route to Poland marks our second entry into the region, following almost 30 years of successful operations in the Finland-Poland corridor. This new connection secures an important trade route in the Southern Baltic Sea and further strengthens our regional position. Both ports are very-well located and offer access to good road connections for swift trade with the use of wheeled cargo.

After a few months of operations, volumes have been satisfactory, and we expect both cargo flows and passenger traffic to continue to grow at a high rate. Traffic between Sweden and Poland has been growing throughout the recent years. This development is in line with Poland’s economic growth, which is one of the strongest in Europe. Swedish companies also have a strong position in Poland. If the market develops as we hope, we will deploy additional tonnage when the time is right.

Up in the Northern Baltic, Finnlines has, not so long ago, introduced two brand-new cruise ferries. Why did you decide to invest in such tonnage, quite a novelty for your company? Why did you place Finnsirius and Finncanopus on the Finland-Åland Islands-Sweden crossing?

Freight volumes between Finland and Sweden have increased by 38% over the past 15 years. Sweden and Finland are each other’s most important export markets,

and this growth, both historically and in future projections, necessitates investing in larger ships and increased capacity.

As much as 90% of Finnlines’ revenue comes from our trusted freight customers; we always refer to Finnlines as a shipping company serving the freight markets.

Our Naantali-Långnäs-Kapellskär route has a clear focus on cargo flows, which has driven the development of the Superstarclass vessels. Finnsirius and Finncanopus, which we can proudly call our new ecoefficient flagships, are designed specifically for the fast-paced freight transport route between Finland and Sweden. The cargo capacity has increased by nearly 24% to 5,200 lane metres per ferry. That said, these vessels are also truly passenger-oriented, equipped with all the facilities and amenities to accommodate travellers and cruisers. The new Superstars have essentially doubled our Finland-Åland IslandsSweden passenger capacity, up from 554 to 1,100/ferry. The new vessels have received a warm welcome, and travellers have found them highly satisfactory. Our summer figures are expected to be nothing short of spectacular!

What is on Finnlines’ sustainability agenda?

The environmental and sustainability landscape is rapidly evolving, with significant changes at national, EU, and International Maritime Organization levels. A major upcoming challenge is to prepare for the FuelEU Maritime Regulation, effective from 1 January 2025, which requires ships to cut their greenhouse gas intensity using alternative fuels. This will impact reporting, certification, and operational planning.

As a shipping company, we see that one of our major challenges is to further improve our vessels’ energy efficiency, which we have already succeeded in over the past years. It is certainly one of the key elements of the green transition in shipping.

Having a clear vision and a green strategy, Finnlines is dedicated to investing even more in sustainability and in safeguarding the environment. The company is evaluating another €400-500 million Green Investment Programme for the FinlandGermany route (Helsinki-Travemünde). By continuing to invest more in environmentally friendly technology and in green fuelpowered vessels, we not only cut our costs but also lower our clients’ carbon footprint considerably. Such investments will enable us to remain the ‘No. 1 Green Carrier’ in the Baltic Sea. 3-4/2024 | Baltic Transport Journal | 35

Interview with Laurence Jones, Director Global Risk Assessment, TT Club

It pays to be safe!

by Przemysław Myszka We all know the phrase ‘safety first’ whether it pertains to car driving, sports, or operating heavyduty machinery. But does the port industry, and container terminals in particular, also live by that rule? We are talking with TT Club’s Laurence Jones, a true veteran of championing safety and security, about the history of introducing safety measures in the port business, who supports them (and who doesn’t), why investing in technology matters, as well as about organised crime that wants to snatch your shipment (physically and digitally) and the rationale behind adding minimum safety features to cargo handling equipment tenders (better still, making them a manufacturing standard).

Can you share the story of how you got involved in making port operations safer?

This is my 18th year with TT Club, and it has been fantastic focusing on safety and helping our members save money and lives.

Altogether, my career has been a half-century journey of sharing my experience about how to make operations safer. I began as a cadet trainee electrical engineer working for the steel industry. I learned the ropes from the bottom up, so to say, by carrying tradesmen’s tool bags at steelworks, something not seen very often these days if you’re a white-collar worker or a university graduate starting one’s career without practical experience. This ground perspective makes you see things, also safetywise, that the C-suite in their offices don’t necessarily know are even happening.

I was then involved in designing, commissioning and operating open-cut and underground coal mines, which also included managing the rail & road side of the business, coal export terminals (including phase 36 | Baltic Transport Journal | 3-4/2024

I of what’s today the world’s biggest one, plus privatising another up-till-then run by the government), steel rolling mills; all in all, other heavy-duty activities for which safety should be paramount. After many, many years spent in various positions, I joined the ports arm of P&O as engineering manager of their container terminal in Sydney.

After two years, I moved to the company’s HQ, looking after their ports globally. When DP World took over P&O, I helped with the integration, after which I came back to Australia and began my adventure with TT Club. Here, I have been visiting 20-40 terminals a year, not only supporting them in their efforts to make the facilities safer with practices, procedures and technology but learning from them as well.

How does the port sector, especially its container part, stack against other industries safety-wise?

At the steelworks I worked for, the Lost Time Injury Rate (LTIR), an internationally recognised safety key performance indicator

(KPI) was 0.5, which is super safe. The figure for the underground coal mine was 30. In 1998, when I asked the people from the container terminal about their LTIR performance, they never heard of such a measure.

I therefore I had to calculate it myself: 170!

So, we started working hard on getting that number down, among others, by hiring P&O Ports’ first group safety manager.

Some seven years later, and their LTIR was 32. This reduction was, of course, achieved through various means, but the single biggest contributor was convincing the top management that safety should be one of their KPIs. It might sound obvious nowadays, but low LTIR is just sound business – it pays to be safe!

Naturally, improving the LTIR also requires good footwork on the ground: training the employees, raising their awareness about the risks and how to mitigate them, and deploying the right technology. I recall a certain global container terminal director who, during a conference a few years ago, highlighted that their most productive facilities are also the safest ones.

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Photo: Przemysław Myszka

That kind of attitude demands a certain culture that flows through the whole organisation. Whereas it isn’t a change that happens overnight – it requires much intentional and well-thought-out work across all tiers – there are really no downsides to embracing it. I mean, who doesn’t benefit from increased safety in the end?

That is what I have been advocating for in the last couple of decades at various industry meetings and conferences. I remember the days at TOC when I was placed as the last speaker on the last day – because who wanted to hear about the importance of safety? Now, we have the Safety Village for the third year in a row at TOC Europe, and it has has grown significantly each year.

What is more, safety made it onto other panels’ agenda – the tech, supply chain, and economy experts are all talking about it.

I wouldn’t mind thinking that I have had a little bit to do with it.

Who is in charge of safety?

It is very much a process. Though safety starts from the top executive, it cannot be left in the hands of safety managers alone for them to shout ‘dos & don’ts’ orders. I encourage managers to go on what I call a safety audit with the operatives. This way, they can uncover what’s below the iceberg’s tip. It also gives the ownership of safety to the entire staff, which can be a powerful motivator for

staying on the safe side and for improvement.

One thing was paradoxical to witness over the decades in this regard, namely that trade unions weren’t particularly interested in moving forward the safety agenda – to the point that I’ve heard one facility has only just recently been successful in introducing hard hats! Unions fear (to a varying degree) automation. However, oftentimes, people get redeployed into safer and more comfortable roles, such as operating a quay crane from an office as opposed to sitting in a cabin high up on the crane. That is one reason why you can see more and more women joining the industry – it is getting safer.

Coming back to unions, there are certain events that leave them with no other option but to change their safety culture. There was one terminal where it was an open secret that employees drank alcohol. The union knew and did nothing despite years of me trying to convince them it was dangerous and unacceptable behaviour. Eventually, there came ‘the day’ when one worker was coming home from work and died in a car accident. The blood alcohol test revealed he had twice the limit. It required the death of a member for the union to realise they had to do something. That is a story from the mid-90s, and, fortunately, many modern terminals today have anti-alcohol policies in place. I have ‘colourful’ memories of dealings with unions, like them chasing me across the quayside, “offering” me concrete

shoes, and finally having them accept and trust me that their safety was my main concern. Today, unions and management are, in most places, working together to ensure a safe workplace.

I have done loads of safety surveys over the years. A typical one goes over 180 questions to assess what’s happening in a facility. Every question has its recommended best practices – how to improve things. Not a single terminal in my career ticked off all the boxes.

Usually, there were 20-30 areas in need of improvement. No one is perfect – but everybody can get better.

Is container terminal safety different in any shape, size, or form?

Operating a container terminal is a fairly young business compared to other port activities or the coal and steel industries – it still has a long way to go, even though it has made pretty decent safety advancements over the last 50-odd years since containers were developed.

“We are different” is a phrase tossed around by container terminals more often than not, while in reality, they aren’t. Looking at the claims handled by TT Club, they are dealing with the same issues worldwide. The thing is – and I cannot stress this enough – that many of these issues are perfectly avoidable by investing in the proper solutions.

Operators, at least some of them, are still 3-4/2024 | Baltic Transport Journal | 37

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Photo: Canva

having a hard time connecting the dots: that you save money by spending money. There is technology available that minimises the risk of, e.g., boom collision. Electronic boom anti-collision technology costs money, sure, but it’s spare change compared to the loss of life and limb, damaging the equipment and cargo, repairs, downtime, not to mention reputational damage and lost business.

There are things insurance simply won’t cover for. Being insured isn’t the same thing as being safe and secure. Studies have shown that for every dollar one gets from insurance, there are between eight and 36 dollars of non-insured costs like the ones mentioned above. Similar to the death in the union case, it’s still far too often that terminal operators invest in safety equipment after an accident – not to prevent it.

How about risks outside the operator’s domain, such as organised crime (including cyber) targeting the logistics chain? What can the transport business do to mitigate them?

It is essentially an arms race. Criminal organisations are always trying to be at least one step ahead of their potential victims. Issues like certain instances of theft seem quite manageable via straightforward methods such as ensuring safe parking places, gated fences, lighting and surveillance cameras. These solutions, which aren’t exactly rocket science, go a long way in combating cargo theft from trucks or stealing lorries altogether.

Naturally, operators also employ technology to their aid. The tricky part lies in using it properly. One can, for instance, install a zillion high-end cameras but have too few staff to screen them all constantly. Here thermal cameras come in handy, because they can 38 | Baltic Transport Journal | 3-4/2024

alert when a source of heat appears and display it front and centre. It may be a fire, an animal walking past the fence, or a criminal cutting that same barrier.

Then again, criminals have far more sophisticated tools in their arsenal. I remember one example where somebody broke into a transport company’s office. Some minor stuff was stolen to hide the true intrusion: installing malware to get into the digital system. Data manipulation (storage relocation, changing the ship-loading plan, ordering a container dispatch, etc.) can enable thieves to access containers directly in a terminal. The system ‘thinks’ it hands over the cargo to the permitted party – the data appears to be correct after all – but what it does is gives the container to criminals.

When it comes to cyber security, it feels like going full circle: 30 years ago, we saw the novelty of employing safety & security managers; today, the same happens with their cyber counterparts. Execs learn that this isn’t necessarily the job of the IT department, whose employees are more concerned with running the TOS or making sure the quay and yard equipment is well-connected so it can transmit data for optimal performance or as a means of predictive maintenance. Here, (cyber) footwork is also needed, like teaching workers that clicking every link they see might not be the best idea.

Some employers invest in white hacking, commissioning experts to try breaking into their digital systems. A single employee opening a legitimately looking phishing hyperlink can be what it takes to hijack a company’s system.

Cybercrime has become the lay of the land – and an increasing portion of it, too; as such, everybody should be prepared accordingly.

Fortunately enough, public authorities, like the police force, are actively taking up the

cyber challenge as well. Yet, similarly, with insurance, it should be the company’s safety culture that stands watch, so to speak.

What safety advancements would you like to see continuing once you start enjoying your retirement?

A sustained, pronounced focus on safety overall. More specifically, I would love to see certain minimum safety requirements built into machinery purchases or, better still, convince manufacturers to make them standard rather than just optional.

TT Club, with the help of the International Cargo Handling Coordination Association and the Port Equipment Manufacturing Association, has released several joint publications detailing the minimum safety features for quay cranes and yard equipment (these documents are available from the websites of the three organisations).

I can recall one boom collision, when the repair cost amounted to two million dollars, plus it was out-of-operation for half a year and there was six million dollars worth of business interruption. The technology that would minimise the risk of that event from happening costs around 30 thousand dollars per crane. Even if you have a giant terminal with, say, 60 ship-to-shore gantries, that’s $1.8 million, so nowhere near the bill for that one incident. Although the probability of boom collision isn’t that high, when it happens, it rockets the damage costs skyhigh. I understand that retrofitting can get costly, that’s why I have been pushing to make safety a standard feature in newly built machinery. A global regulation making these safety features mandatory would be great to witness. As things stand today, the way forward is to break through to terminal operators with the ‘safety pays’ message.

Key takeaways from TT Club and BSI’s 2023 Cargo Theft Report

Crime goes up when the global economy goes down

by Mike Yarwood, Managing Director Loss Prevention, TT Club The 2023 edition of the Cargo Theft Report, prepared together with our partners from BSI, pinpoints high inflation as the primary macroeconomic driver of cargo crime patterns. For example, there was an increase from 16% to 21% of stolen food and beverages (including alcohol) in global trade.

Electronics were slightly down at 9% of incidents but still significant in terms of value. At 71%, road remains the most common mode. At the same time, facilities as a location for theft went down from 30% to 23%. ‘Top’ risk countries include Mexico, the US, South Africa, Germany, and Italy, with modus operandi differing region-to-region (e.g., ‘blue light crime’ in South Africa and ‘insider activity’ in Asia).

A

s in the past four years, BSI and TT Club have come together to highlight the global cargo crime trends that were prevalent over the previous 12 months. Our Report is intended to serve as cautionary advice to all concerned with supply chain security, likewise to provide mitigation recommendations to combat these threats, which are likely to persist into the current year.

In identifying shifting crime patterns in terms of new fraudulent methodologies and a focus on both historic and current geographic risk, we seek to assist operators in tightening their security processes. In addition to the details of the global trends in commodities stolen and the types of theft, we have provided a series of case studies drawing attention to prevalent regional or country specific dangers.

Inflation-inflated theft While the conversation has shifted from COVID-19-related disruptions and subsequent trade congestion, supply chains continue to face a myriad of challenges, ranging from geopolitical tensions and conflict through worsening natural disasters to digital-powered disruption. As we see new effects of inflation on cargo crime, we are also tracking historical patterns of thefts that preceded and followed the ‘corona era.’ For instance, though the usage of deception in thefts in South Africa or violent cargo thefts in South America are not a new issue, they nonetheless continue to pose an evolving threat to the supply chain, especially as they intersect with newer issues like inflation.

Looking more closely at inflation or the loss of purchasing power, we can track the effects of this macroeconomic factor on crime patterns. We have noted a steady increase in 40 | Baltic Transport Journal | 3-4/2024

thefts targeting food and beverages over the past few years, increasing from 16% in 2022 to 21% in 2023 (parallel to this gradual shift in the theft of basic goods are sustained thefts of higher-valued goods such as electronics).

These include an increase in olive oil thefts in Southern European countries following record poor harvests and a consequent rapid rise in the value of the oil, as evidenced by the retail cost recorded on supermarket shelves.

We logged numerous thefts of olive oil last year, with qualitative reporting indicating that thefts of this good increased, especially in the major olive oil production countries of Spain, Italy, Türkiye, and Greece.

The dynamics of this problem are representative of many of the challenges that the food industry currently faces, with inflationary factors and other issues leading to price increases, as well as thefts. According to the European Commission, olive oil prices rose by 75% from January 2021 to September 2023.

We typically see an increase in thefts of products that experience significant price increases coupled with limited supplies. For instance, in August 2023, thieves in the Spanish Cordoba stole 56 tonnes of extra virgin olive oil, valued $540 thousand, from the warehouses of an oil mill. Many sources have begun referring to olive oil as “liquid gold,” highlighting its value.

Spain suffered from the second worst harvest of the 21st century (following only 2012), while other important producing countries also reported diminished harvests. As climate change makes production in certain areas more difficult, the scarcity of these crops leads to increased demand and higher prices, which may incentivise thefts.

Modus operandi The Report details crimes in both Europe and the US that employ various types of

fraud, including identity theft, fictitious pick-ups and drop-offs, and credit fraud.

In the latter, the increasing risk of fraudulent cargo theft practices continued from 2022 through 2023, with an uptick as the country is far and wide: California, Texas, Florida, Tennessee, Pennsylvania, and Illinois.

Fictitious thefts rose from 1% in 2022 to 17% in 2023, with a significant increase in recorded strategic theft patterns, where thieves used identity theft and fraud, alongside fictitious pick-up, as well as brokering schemes to secure loads at cargo locations (such as warehouses and freight facilities). In addition, companies are seeing a rise in the misdirection of goods from freight facilities, partly due to the theft of broker and carrier identities. Cargo loads may disappear for long periods of time before being reported stolen, reducing the likelihood of recovery. Companies are attempting to combat these fraud attempts by vetting carriers and logistics providers. Looking ahead to 2024 and beyond, strategic theft groups may also attempt to target carrier vetting methods.

In South Africa, thieves continued to use corruption and other forms of deception to facilitate cargo thefts globally. One example is the persistent presence of organized criminal groups using fraudulent tactics to hijack trucks in the country. South Africa remained the top region of concern for cargo theft on the continent in 2023.

Goods transiting through South Africa face a significant hijacking risk, especially with the presence of ‘blue light gangs.’ These criminals impersonate police officers by disguising themselves in uniforms and using blue lights on their vehicles to mimic police cars, tricking the drivers into pulling over. The perpetrators then commandeer the truck and steal the cargo.

LEGAL Cargo Theft Types

12%

Theft from facility

financial losses to businesses. In one case, a truck driver and three accomplices in India stole a few cell phones during delivery on several occasions over five months, amounting to $36.5 thousand.

20%

8%

Theft of vehicle Theft from container/trailer Theft from vehicle

2023

11%

Hijacking

14%

Theft of container/trailer Theft of employee belongings/truck parts

11%

Other

11%

13%

Top Commodities Stolen

21%

10%

10%

8%

7%

7%

38%

Food and Beverage

Agriculture

Electronics

Fuel

Metal

Automotive

Other

Top Countries for Cargo Theft

Modalities of Theft

71% Facility 23% Rail 2% Other 4% Truck

Mexico

United States of America

India

Italy

Brazil

Germany

South Africa

Argentina

Thieves are also known to target in-transit vehicles using other deceptive tactics, including blinding the driver with a bright light, forcing them to pull over, and overtaking the vehicle. There have also been reports of thieves setting up fake roadblocks and using violence or the threat thereof to overtake the vehicle. Leveraging the use of insider participation is another common tactic used to steal cargo. Truck drivers have been known to assist criminals in stealing goods, such as staging hijackings.

The importance of companies vetting employees and third-party workers is apparent in Asia. Compared to other regions, it records the highest rates of insider participation in cargo theft. In 2023, 26% of recorded cargo thefts in Asia

involved insiders, with India, Indonesia, and Bangladesh being the top Asian countries for recorded insider participation. Corrupt warehouse employees, port workers, security guards, and truck drivers exploit their strategic position and often collude together or with cargo theft gangs to steal from their employers. The desire of insiders to remain undetected informs the types of theft tactics they employ. To maintain their proximity to cargo, corrupt supply chain actors in Asia often steal small amounts of freight over a longer period, rather than the one-anddone hijackings seen in the Americas or the slash-and-grabs of Europe. Despite the smaller quantities stolen, the high frequency of thefts still amounts to significant

Risk mitigation TT and BSI’s combined experience as insurance providers and supply chain intelligence gatherers is invaluable, not just in recording the details of the crime but also in recommending practical actions and process design suggestions, itemised in our Report, that will strengthen supply chain organisations in their fight against the threat of theft.

Undertaking sufficient due diligence, particularly when dealing with new customers, is vital. This is a primary risk management tool for your business. Knowing your customer is critical on all levels, including regulatory compliance, safety, and security. The cash flow of your business is, of course, also of importance, so verifying the customers’ credit worthiness before extending credit is prudent.

Among others, the following risk mitigation steps should be considered. Care in identifying the customer’s full legal name and registered address. Scrutinising contact details, including telephone and email (noting that mobile phone numbers and free email addresses could be a red flag), as well as websites and their address (the main, or registered, activity of the customer). Ownership verification: taking account of regulations, such as sanctions, as appropriate. Checking the legal form: limited company, sole trader, publicly limited company, likewise the company’s registration number (tax, e.g., VAT) or membership in governmental or similar audit scheme (e.g., having the Authorised Economic Operator status). Inspecting with whom we are dealing personally, including their roles and crucially important whether they have the authority to sign on behalf of the customer.

Forewarned is forearmed Cargo theft is a problem that costs companies tens of billions of dollars each year and can cause significant disruption to important supply chains, from pharmaceuticals to semiconductors. Having accurate and up-to-date intelligence is the first step in combating this problem and pinpointing the locations and types of theft that are most likely to harm global supply chains.

TT Club specialises in the insurance of intermodal operators, non-vessel owning common carriers, freight forwarders, logistics operators, marine terminals, stevedores, port authorities and ship operators.

The company also deals with claims, underwriting, risk management as well as actively works on increasing safety through the transport & logistics field. Please visit www.ttclub.com for more info.

3-4/2024 | Baltic Transport Journal | 41

Lost containers cause further supply chain disruption

Missing in action

by Mike Yarwood, Managing Director Loss Prevention, TT Club The vital importance of the container to the efficiency of the global supply is undeniable. The loss of such equipment is becoming an increasing cause for concern, particularly in the current situation where congestion and lengthy transit times from Asia to Europe exacerbate a shortage of containers in the right place at the right time. Let us examine the variety of factors adding to these shortages.

W

hen considering theft in the supply chain, understandably the focus is primarily on cargo losses. Criminals inevitably turn their attention to whatever opportunity is presented. Cases involving misappropriation of shipping containers typically implicate large numbers of units over extended periods, which differentiates them from incidents of cargo theft that often involve single incidents that may more easily evade detection.

It is widely recognised that all actors in the freight supply chain – including operators of containers – need to exercise diligence in relation to their counterparties, particularly when contracting with those who are unknown or there is an apparent change in expected behaviour.

Containers lost to thieves…

Theft of containers (whether for trade or repurposing) has long existed, but as technology to track and trace units has developed, the future use of those stolen boxes has had to be more carefully considered by those behind the crimes. Data technology advances – whether through improving standards or with ‘smart’ containers – mean that there are growing possibilities for a stolen unit to flag up as it is gated into a terminal or as processed through the ship’s booking and stowage systems. The criminals understand this, and often the containers are either neutralised and used for long-term, static storage or are altered to disguise the original identity.

More recent trends have been identified where digital records have been 42 | Baltic Transport Journal | 3-4/2024

manipulated. This strategy has proven difficult to identify during the early stages of the fraud. One such method that has been seen involves the release of a container that remains for the system record ‘logically’ in a depot (perhaps stated to be under repair).

This affords the bad actor time to relocate the container, neutralise the unit, and cover its disappearance.

More sophisticated frauds have demonstrated the potential for insider involvement.

Units are maintained on system records as located in a container depot and noted as a constructive total loss following a fictitious physical damage incident, while physically, they have been ‘gutted out’ and sold to a third party. In both scenarios, it could be several months between the fraud commencing and the issue coming to the attention of the container operator.

TT Club has also seen several instances where large numbers of containers have been stolen by fraudulent actors operating in the supply chain. Using tactics similar to those employed to steal cargo, distressed or bankrupted companies have been used to create bookings for large shipments involving many containers. After the units are collected, they are quickly sold, often in countries where they will be difficult to trace or where law enforcement is weak. The fraudulent agent then disappears, and the bust companies they used to create the booking have no assets to claim against. Online platforms that allow third-party bookings are also highly vulnerable to fraudulent actors, illustrating that it is just as important for container operators to complete due diligence as it is for shippers and cargo owners.

… and at sea While the volumes of containers lost at sea fluctuate year on year, typically influenced by the more severe of weather conditions, the challenge of reducing the numbers remains.

Understanding the circumstances that lead to a collapse of stow and loss overboard incidents is important to mitigate the risks.

In this context, TT has been involved from conception in the TopTier Joint Industry Project of the Marine Research Institute Netherlands, which draws together a group of over 40 stakeholders in identifying and resolving the circumstances that lead to such incidents. TT’s own analysis of historic incidents clearly shows that weather is the single most influential factor. Yet, the data demonstrate that this is a far more complex challenge involving a wide range of interconnected operations.

The process starts with the consignor, who typically places a transport order, including making a declaration about the cargo being shipped. Accuracy is, of course, vital – freight type, nature, characteristics, etc. – but in the context of loss overboard, the declared weight or verified gross mass is pivotal. It should also be noted that poor load distribution when packing the shipment will erode safety margins.

Next, at the ship/port interface, the terminal operating system will support appropriate on-board stowage alongside stow planning software influenced by declarations of cargo type and gross mass. Where these systems in essence seek to load heavier containers lower in any given deck stack, TopTier studies identified discrepancies

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Photo: Monterey Bay Aquarium Research Institute

up to 20% between planned stow vs. the actual final stow on board. If representative of all operations, this is itself alarming! This is significant, particularly where a heavy container is erroneously stowed towards the top of a stack. In any adverse sea state, there is an increased risk of stack collapse under the physical forces exerted.

Furthermore, if that stack is in the middle of the stow, further collapses in adjacent stacks are more probable.

The loss of a container stack is affected by other aspects beyond simply the wave height, such as sea state and swell from different directions, rapidly changing conditions, and lack of information to the ship’s crew about swell that could be predicted ahead of time. For larger container ships, other factors also affect the loss of containers, including excessive metacentric height, whipping, and bottom contact in shallow water.

Moreover, container stack calculations effectively do not take full account of all the constituent components under dynamic force in defining design margins. Lashings have a safe working load at 50% of the maximum break load, but the ISO container tests for stacking and racking set the forces

at the certified strength. Thus, these cannot be used in isolation when considering the container stack forces. Taken together, the developed combined forces of compression and racking, which should be used in ships’ planning models, may be higher than the certified strength values of individual containers (this may be particularly pertinent for stacks 10/11 high).

Appreciating all the factors that may erode safety at sea, we look forward to the finalisation of the research by TopTier and the opportunity to continue to be involved in the ensuing debates, particularly at the International Maritime Organization.

However, ships will never be able to avoid the impact of heavy seas entirely.

Consequently, TT Club, in furtherance of its mission to make the global logistics industry safer, more secure and more sustainable, is currently involved in two other innovation initiatives.

The first, being profiled in the latest TT Club Innovation in Safety Award, organised by the International Cargo Handling Coordination Association, is the development by Trendsetter Vulcan Offshore of two complementary digital and engineering solutions to mitigate the

risk of container loss overboard, applying well-established systems from the offshore industry. Their Janus system’s monitoring capabilities include both predicting and detecting parametric roll, allowing evasive action to be taken before ship and stack dynamics enter a destructive range. Another innovation is the LR Safetytech Accelerator Cargo Fire and Loss Innovation Initiative. Within a broader technology scope, it’s an onboard cargo control system that checks whether freight has been properly loaded, secured, and monitored during transit.

Conventional wisdom remains that heavy storms should be avoided where possible to minimise the risk of container loss.

Nevertheless, the deployment of innovative technology can help build greater safety margins, including leveraging data capture to improve understanding and predictions in changing sea conditions.

At multiple points in the supply chain, on land or at sea, there remains a pressing requirement to track, secure and care for the container, not just as an asset but also as a key element in maintaining international supply chains as an integral part of the global economy.

TT Club specialises in the insurance of intermodal operators, non-vessel owning common carriers, freight forwarders, logistics operators, marine terminals, stevedores, port authorities and ship operators.

The company also deals with claims, underwriting, risk management as well as actively works on increasing safety through the transport & logistics field. Please visit www.ttclub.com for more info.

3-4/2024 | Baltic Transport Journal | 43

Highlights from ESPO’s latest port investment study

Shifting priorities & drivers

by Ewa Kochańska The European Sea Ports Organisation (ESPO) has released The Investment Pipeline and Challenges of European Ports report to update the state of financial challenges faced by the Europe’s ports in 2024. Based on a survey of Port Managing Bodies (PMBs) in Europe, the study reflects the evolving landscape of port operations, emphasising the shift to sustainable energy and the importance of public funding. The report offers insights into planned investments by European PMBs, discusses their changing roles and motivations, and highlights existing investment obstacles.

T

he aim of the survey, conducted from December 2023 to February 2024, was to update the same report from 2018, albeit with a few adjustments, e.g., the 2023/2024 data set was collected from 84 PMBs, compared to 60 previously. The general results show that Europe’s ports, in order to live up to the expectations of what they must become within the next decade, need around €80 billion up to 2034.

Pertaining to where the money is going, funding for the energy transition and other sustainability projects has become one of the top two financial priorities for the European PMBs. To handle these and a plethora of different challenges, such as infrastructure and technology upgrades, European ports will increasingly require sizable public funding, relying on specific port allocations within various EU funding programmes, primarily through the Connecting Europe Facility (CEF), as well as the Innovation, the Just Transition, and the Modernisation funds.

Investment pipeline by numbers Due to a high response rate to the survey, the results provide a detailed picture of the 44 | Baltic Transport Journal | 3-4/2024

port industry in the EU, however, without disclosing data on particular ports.

Instead, the report focuses on overall results and groupings of the Trans-European Transport Network’s (TEN-T) Core and Comprehensive Ports.

The report identifies 467 projects in 2023, up from 396 in 2018, and 84% of these projects were developed by PMBs, as the survey excluded investments by specialised private companies. Only third-party projects that enhance overall port development were included, such as government infrastructure investments and private contributions under concession agreements. The survey also covers projects managed by private firms in partnership with PMBs or state-owned enterprises, especially in inland waterways (50%), road connections (42%), rail links (33%), and energy transition (33%). Also important to highlight is that the survey focuses on capital expenditures and does not cover operational expenses – which is a significant amount for PMBs needed to maintain existing facilities like quay walls and port basins.

The analysis of the data shows that the second highest expense (after maintenance)

in European ports is the financing of various investments related to sustainability and energy transition, amounting to 55 projects in total. Another major segment includes ‘infrastructure and facilities aimed at lowering the environmental impact of shipping’ with 54 projects, and a smaller portion involves ‘initiatives to lessen the environmental footprint of port operations’ (eight projects).

The expectation that ports become energy hubs and support the transition to sustainability also in their surrounding cities and towns means PMBs must change and expand their services. As such, ports plan to introduce, among others, e-truck charging stations, (green) energy for port businesses, clean fuels in maritime (and pipelines for transporting them), and (digital) energy management services, while nearly two-thirds of all PMBs intend to supply onshore power (OPS) to vessels (most of the remaining ones already offer this service).

Compared to 2018, the ambition for launching these options in the next five years is significantly higher, with plans to triple the number of new services compared

FIGURE 2: PLANNED INVESTMENTS OF THE PMBs BY TYPE

Fig. 1. PMBs’ planned investments by type

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● Share 2018 ● Share 2023 Expansion of port basins, quays, or terminals Infra/services for the sustainability and energy transition…

Maritime access Infra. for smooth transport flows in the port Equipment and superstructure Intermodal/multimodal terminals ICT/digital infrastructure Rail transport connections Sites for port related logistics and manufacturing Road transport connections UrBan functions in port areas Inland waterway connections Other

0%

10%

20%

30%

40%

Source for figs. 1-2 & 4 and Tab. 1: ESPO’s The Investment Pipeline and Challenges of European Ports

to the past half a decade. In particular, concerning clean energy and decarbonisation efforts, the predominant investment goes to OPS stations, with over 70% of ports reporting plans to invest in this area. About half of the participating PMBs intend to develop facilities for transporting and storing electricity, one-third plan investments in renewable energy production, and around 30% focus on energy management systems.

The projects included in the report are in different stages of completion: partial,

ready for execution, and in the study or idea phase. Here, quite significant progress has been made in five years: in 2018, over half (57%) of the projects were just on the drawing board, whereas this year, this share has decreased to 40%. Also, more projects are in the execution stage in 2024 – some 20% compared to around 14% in 2018.

Concerning port expansion investments, this category has seen the most projects – 123. The significant segments driving this development are break-bulk and general cargo businesses, particularly in the

Tab. 1. Segments for which expansion investments are made

Containers RoRo cargo

Passengers Cruise (ferries)

Dry bulk

Liquid bulk

Breakbulk and general cargo (e.g. wind blades)

35%

32%

11%

10%

26%

14%

30%

Comprehensive 15%

24%

12%

0%

30%

15%

45%

Core

Source: Port investments survey

Comprehensive Ports. Whereas the container segment remains important, its significance declined in 2023 vs. 2018. This shift indicates a larger trend, where the energy transition has become a more pronounced investment driver than general trade growth.

Further, the survey included a question about rail investments: 27 projects in total.

The responses in this area underscore that the most common investment concern here is extending or modifying existing links, with fewer plans for new connections.

Investments in electrification or safety systems are rare, as rail infrastructure companies typically manage these.

The data points to Europe’s ports having a robust investment pipeline. With the everchanging environment of European harbours focusing now more on clean fuels, clean energy, energy independence, and port resilience, the nature of PMB investments has noticeably changed since 2018.

3-4/2024 | Baltic Transport Journal | 45

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FIGURE 8: NUMBER OF PROJECTS PER INVESTMENT RANGE

Fig. 2. Number of projects per investment range

Less than 10 million 10–20 million 20–50 million 50–100 million 100–200 million More than 200 million 0

Balancing the books Until 2034, the projected investment pipeline of the surveyed PMBs is approximately €45 billion; this amount does not include private company port investments, but only projects developed through joint ventures involving PMBs and partners or by government-owned companies. This amount is higher than the 2018 figure in part because of a different estimation method for investments exceeding €200 million (using additional port-provided data) and because ports were asked to provide their investment plans for the next 10 years as opposed to seven in 2018.

The planned investment pipeline for TEN-T Comprehensive Ports (with an average cargo volume of around 7.0 million

20

40

60

80

tonnes per year) is higher than for the Core ones. The former tend to handle low(er)volume commodities, such as conventional general cargo and goods in bulk, rather than high-volume trades, like containers. That said, Comprehensive Ports eye earning more money in the future by serving the wellpaying wind energy industry, especially its offshore part (then again, so do Core).

An example given by ESPO of a Comprehensive Port with a significant investment pipeline is Groningen Seaports.

As part of its energy sector expansion, this Dutch PMB is dedicating resources to land development, quays, accessibility, and utilities to draw in new energy-focused businesses like offshore wind, hydrogen, and sustainable aviation fuels. There is

100

120

Negative

46 | Baltic Transport Journal | 3-4/2024

Source: ESPO (2018) Port Investments Survey

Hurdle rate for port managing body

Financial business case for the port managing body

Positive

a significant demand for additional port areas, necessitating speedy site development to ensure availability and attract both National/re existing and potential investors (yet, our region shouldn’t feel inferior – the Baltic Green Map and its Catalogue round up CEF Tran a wholesome set of all kinds of future-oriented port and port-related projects, while Oth the Baltic Offshore Wind Energy Map does the same for those interested in harvesting wind power regionally).

A significant challenge is to balance National/re making investments before inking contracts, particularly in constructing new CEF E quays, adding land, and setting up other heavy-duty infrastructure. In terms of utilities, the main issue is synchronising supply EU lo with demand in both timing and location.

The financing challenge is tied to uncerFig. 3. The case for public funding for investment projects of PMBs tainty, potentially causing investment delays CEF D and unsatisfactory solutions that can negaHurdle rate for public funding tively affect the overall business network and sustainability objectives.

Given that the survey response 1.

2. accounts for 72% of EU port activity, the Case for not granting permits Case for investment, report has provided a “conservative” esti(not common in ports) no public funding need mate of total investments in the block’s ports, which amounts to €80 billion from 2024 to 2034. It is also important to keep in mind that besides PMBs, private enterprises European ports 8 The estimated total investment sum of the 467 projects is more than €52 billion.

Moreoperating than €6 billion within is excluded, will continue to invest substantially in since in this case a private operator, not the PMB, is making the investments. new infrastructure, such as terminals, 3.

4. storage facilities, and industrial plants, No case to make investment Case for public funding aimed at producing clean energy commodities like hydrogen, ammonia, and biofuels. Stevedores will also likely continue greening their machinery f leets.

The survey also sheds light on factors Negative Societal value case Positive influencing investment projects undertaken by PMBs. There is a notable contrast Source: ESPO’s 2018 Port Investment Survey

FIGURE 12: ECONOMY THE PMBs’ DESIRED FUNDING MIX FOR PLANNED INVESTMENT PROJECTS

Fig. 4. The PMBs’ desired funding mix for planned investment projects

National/regional grant CEF Transport grant Other EU grant National/regional loan CEF Energy grant EU loan (e.g. EIB) CEF Digital grant 0%

between 2023 and 2018 regarding key drivers. Last year, economic decarbonisation was a much more significant factor than five years earlier. However, the anticipated rise in trade volumes played less of a role in 2023 than in 2018 (although it continues to be an important driver for investment demands). In terms of obstacles to the planned investments by PMBs, the report listed seven potential bottlenecks: insufficient societal support, legal hurdles stemming from environmental regulations, complexity of agreement amongst all project partners, insufficient financing instruments to close the funding gap, lengthy and complex permitting procedures, expenditure increases because of inflation and material costs, and inability to secure funding for the investment projects.

The survey results underscore financial obstacles remain highly significant in the port industry. Also, this conclusion aligns with 2022 data on PMB investments; over 40 PMBs, handling over 1.5 billion tonnes of cargo, reported total investments exceeding €1.5 billion that year. Despite this high level of investment capacity, PMBs’ financing ability is still inadequate to fund all upcoming projects.

Value for money From a European standpoint, PMBs reduce energy dependency, create sustainable environments, and enhance geopolitical resilience. According to the report, the value generated by the in-the-pipeline investments of Europe’s PMBs is comparable to the value created in their 2018 portfolio.

10%

20%

30%

Through most of their projects, ports prioritise generating high-quality outcomes for both current and future port users, including shippers, shipping lines, and port-operating companies.

Additionally, PMBs create societal value by minimising the environmental impact of port and logistics activities and supporting the energy transition – locally by reducing negative impacts (of pollution) and through waterfront redevelopment projects.

The report states that over 85% of PMB projects have a beneficial environmental effect. Firstly, approximately one-third of the investments enhance efficiency in shipping and port operations. Secondly, about one-third of the projects directly lower the environmental footprint of port and shipping activities, such as through the provision of (green) shore power.

Lastly, another third focuses on reducing the environmental footprint of the port management itself. Additional actions in this area include attracting zero-carbon industries, e.g., via becoming sustainable fuel production hubs, or shifting cargo to more eco-friendly transportation modes like inland waterways or rail.

The 2018 Port Investments Study emphasised that projects expected to provide significant societal benefits relative to their costs are important from a community standpoint. However, although the societal value created is often considerable, PMBs cannot always translate this into financial revenue, making some projects commercially unviable.

National and European policies offer

40%

50%

loans or grants to PMBs to address this issue to some extent.

Because of ongoing financial constraints, PMBs predominantly seek public funding to implement their investment projects.

Almost all European PMBs are publicly owned, which drives their focus on user and societal benefits. Approximately 40% of projects aim for national or regional grants, and one-third seek CEF backing. In contrast, only a small portion of projects pursue loans from the European Investment Bank compared to national and regional ones.

For projects in the implementation phase with secured funding, nearly one-third have received CEF grants, while very few have got national funding. These results imply PMBs can count on a financial support at the state level only once customised funding mechanisms are created.

Charting a fresh course European ports have been expanding their role significantly in recent years.

Beyond serving as critical links in the supply chain by connecting maritime and inland transport, they are sprouting into centres for sustainable energy and offering circular economy initiatives while also enhancing geopolitical and economic resilience.

These new functions complement their traditional roles but also create new investment needs, yet the most critical bottlenecks identified by PMBs are related to the financing and implementation of projects. To overcome these challenges, ports need public funding from diverse sources at regional, national, and European levels.

3-4/2024 | Baltic Transport Journal | 47

Navigating the complexities of logistics in Ukraine amidst war: a perspective from 2022 to present

Adaptability and resilience

by Oksana Antipa, Branch Manager, SYNEX Logistics Since the onset of the war in Ukraine in 2022, the logistics landscape has been in a constant state of flux. The ongoing conflict has dramatically altered supply routes, posing unprecedented challenges for forwarders and logistics providers. Despite these difficulties, the sector has shown remarkable resilience, continuously adapting to the evolving situation to ensure the movement of goods into and out of Ukraine.

T

he country, with its vast territory, has always had a significant demand for a diverse range of cargo. The need for imports such as fertilisers, equipment, and everyday commodities has remained high, alongside exports of raw materials like timber, sunflower oil, grains, and steel. Before the war, the import-export ratio stood at a healthy 52% to 48%, with a balanced circulation of equipment indicating a stable market.

A shift to the Baltic and within the Black Sea However, the 2022 invasion disrupted this equilibrium. Key logistics infrastructure, including warehouses, was destroyed, while the Black Sea, Ukraine’s direct – thus vital – shipping route, was heavily mined and blocked. This situation necessitated a swift re-evaluation of logistics strategies.

Local forwarders had to explore alternative 48 | Baltic Transport Journal | 3-4/2024

routes, often through Polish ports in Gdynia, Gdańsk, and Szczecin-Świnoujście. The Baltic Hub in Gdańsk became a focal point, though not without extra logistics footwork, as shipments often required reloading from shipping containers to trailers to avoid the risks and costs associated with transporting the former into conflict zones.

The disruption forced logistics providers to get innovative. Polish seaports played a crucial role, becoming the primary entry points for goods heading to Ukraine. Given the complexities of transporting goods in a war zone, the reloading of cargo at these ports became a standard practice to bypass the restrictions imposed by shipping lines on their equipment entering high-risk areas.

This led to an increased demand for warehousing services and a need for skilled personnel to handle the complex logistics of reloading and transhipment.

Moreover, heavy cargo, such as

machinery and construction materials, often found more efficient transport via rail. However, fluctuating market conditions, including strikes at the UkrainianPolish border, occasionally led to delays and increased costs, forcing customers to switch between rail and road transport based on availability and cost-effectiveness.

The war has also seen a rise in the movement of project cargo through Polish sea terminals. Items such as stainless steel rounds, cranes and heavy machinery, which are essential for reconstruction and industrial activities, have been imported despite the challenging conditions. The logistics of handling these heavy and specialised items require robust infrastructure, including stationary and floating cranes and experienced personnel to manage the operations.

Meanwhile, the Port of Constanța has also become a significant entry point, especially for Ukraine’s southern regions. About

ECONOMY

Photos: SYNEX Logistics

Photo: HHLA/Thies Rätzke

25% of the volume now passes through the Romanian seaport, offering a cheaper trucking alternative and an increasingly popular train connection. Recently, feeder and direct shipping services, including those provided by Maersk and MSC, have seen the addition of Ukrainian ports like Odesa and Chornomorsk to their schedules despite the risks involved.

Similarly, the Port of Varna in Bulgaria has emerged as another route for diversifying logistics strategies. Although not as popular as its Black Sea EU neighbour, it provides an option for businesses looking to mitigate risks and optimise costs.

Cargo arriving here is typically reloaded into trucks for onward delivery to Ukraine, with companies constantly testing these routes to find the most efficient solutions.

Future westward integration A critical aspect of Ukraine’s logistics evolution is its integration into the TransEuropean Transport Network (TEN-T).

This comprehensive EU project aims to establish a coherent transportation web across Europe, including roads, railways, and ports (sea, inland, and air). Under the

Association Agreement with the EU, since 2017, Ukraine has undertaken numerous initiatives to upgrade its transport infrastructure, aligning it with EU standards.

These efforts include the modernisation of road and rail networks (among others, key standard rail gauge connections with Eastern EU Members), the development of sea- and river ports, and improvements in airport infrastructure.

Further integration into TEN-T remains a priority, with plans focusing on expanding high-speed rail connections, improving roads, and developing multimodal transport links. These initiatives are vital not only for enhancing Ukraine’s logistics infrastructure but also for strengthening its economic and political ties with the EU. The adaptation of Ukraine’s legal and regulatory framework to align with EU

standards has been an essential component of these developments. Harmonisation efforts cover, among other things, transportation safety, environmental protection, and technical standards. The process also includes simplifying customs procedures and establishing dispute resolution mechanisms, ensuring smooth and efficient crossborder transport operations.

The logistics sector in Ukraine has navigated through significant challenges since the onset of the armed aggression. Despite the obstacles, the industry has shown remarkable adaptability and resilience, continuously evolving to meet the country’s needs. As Ukraine continues to integrate with the EU’s TEN-T, the future promises further improvements in infrastructure and connectivity, paving the way for greater economic and political integration.

Part of the Eclectic Talents Group, SYNEX Logistics is a 3PL operator from Ukraine. The company provides transport, contract & project logistics, and customs brokerage services, specialising in multimodal logistics, transportation of oversized cargo, as well as air freight.

SYNEX Logistics conducts freight forwarding worldwide and currently operates offices in Ukraine, Kazakhstan, Czechia, and Poland. Head to synexlogistics.com to learn more.

3-4/2024 | Baltic Transport Journal | 49

CII is about to get more expensive – here’s how to prepare

The (critical) cost of carbon

by Aleksandar-Saša Milaković, Staff Engineer, Bearing AI The International Maritime Organization (IMO) has set a bold objective for industry emission targets, among others, the ambition to get shipping to net-zero by 2050. However, many claim that the sector may only meet the deadline with proper financial incentives. While the push for a suitable market mechanism is clear, the construction of that mechanism – and its cost to shipping companies – remains uncertain.

T

he article delves into the potential introduction of a Carbon Intensity Indicator (CII) pricing mechanism. It compares various greenhouse gas (GHG) incentives and, leveraging proprietary calculations, speculates on their impacts and how companies can prepare for the change.

Financial incentives – needed The maritime industry, responsible for a significant portion of global emissions, is at a pivotal point. Without some form of carbon pricing implemented, achieving climate goals and having a profitable f leet that runs on low- or zero-emission fuels will be difficult.

Debate is ongoing, so nothing is certain regarding a financial impact for CII — or its price tag. However, current emission reduction initiatives offer a glimpse into what the IMO might propose. For instance, the International Chamber of Shipping suggests a carbon price range of $20 to 40 per tonne, whereas Maersk advocates for a more robust $150/t tax. The 50 | Baltic Transport Journal | 3-4/2024

World Shipping Council’s Green Balance Mechanism proposal aims to level the playing field between black and green fuels through a novel taxing and redistribution scheme.

Then we already have the European Union’s Emissions Trading System (EU ETS), a pricing mechanism requiring ships (over 5,000 of gross tonnage) to purchase carbon offsets for a significant portion of their emissions. Vessels are financially responsible for 40% of carbon emissions between European ports in 2024, 70% next year, and 100% beyond 2025.

FuelEU Maritime is a new regulation adopted by the EU as part of its Fit for 55 package. It strives to boost the adoption of renewable and low-carbon fuels in the maritime industry to curb GHG emissions. This regulation establishes goals to decrease the GHG intensity of marine fuels progressively, starting at 2% in 2025 and aiming for an 80% reduction by mid-century. Importantly, this and other mandates are set to tighten over the coming years.

Carbon credits – a potential price breakdown The Bearing AI platform can precisely forecast CII Ratings and EU ETS obligations.

Our company has leveraged this capability to calculate the latter’s price comparison to passing and failing CII scores of vessels operating exclusively in the European Economic Area to understand CII carbon costs.

Leveraging industry-leading artificial intelligence, we can accurately predict CII ratings and end-of-year EU ETS obligations for a vessel. Below, we have calculated theoretical CII ratings and EU ETS obligation costs – based on a price of $80 per EU Allowance (EUA) – for a container ship with a nominal capacity of 1,400 TEUs operating on a feeder service.

Our calculations reveal a significant cost disparity based on CII ratings. A vessel failing to meet the required CII level (grades D-E) faces a considerably higher financial burden than those receiving a score of A. This discrepancy is projected to widen, with the difference between A and E ratings ballooning from $409,414 this year to $961,089 by 2026 and beyond.

MARITIME

Photo: Canva

The three figures show the EU ETS costs for each CII score of a 1,400-TEU container ship feedering between Baltic countries.

For these examples, we used an EUA price of $80. The calculations do not indicate the CII market mechanism the IMO is set to reveal but are an exercise in visualising

the cost impact of reducing emissions and identifying the relationship between CII ratings and EU ETS obligations.

While the figures only represent the potential costs of EU ETS obligations in relation to CII scores, they help to illustrate the potential financial impact of a carbon tax

based on CII, highlighting the urgency for companies to understand and prepare for the forthcoming regulations. While not definitive, this exercise offers valuable insight into the economic incentives for reducing emissions and the financial implications of the IMO’s pending market mechanism.

Don’t get yourself caught unguarded by the price tag No matter the cost of the CII market mechanism, one thing is certain – it’s not here (yet!). That said, the key to mitigating future financial risks lies in preparation and the early adoption of green technologies and practices – the sooner companies begin preparations, the better.

Businesses that seize on tools to reduce emissions proactively – like Bearing AI’s emission optimisation suite – can steer their course toward compliance and sharpen their competitive edge. Such solutions offer an opportunity to keep tabs on emissions,

managing and limiting them actively, as well as anticipating regulatory changes and steering a course towards adherence and advantage in an industry landscape that is nothing but shifting rapidly.

The push for a tangibly more sustainable maritime industry is here to stay, with

financial incentives playing a pivotal role in accelerating the transition toward net-zero emissions. While the exact structure and impact of the IMO’s potential CII pricing mechanism remain speculative, the direction is in plain sight: the cost of carbon will be a critical factor in shipping economics.

Bearing is at the forefront of bringing AI to maritime shipping. This is a trillion dollar industry that moves 90% of the goods we interact with on a daily basis, but has traditionally lagged far behind other industries in adopting new technologies. At Bearing, we’re changing that. We’re building AI-enabled products that solve the shipping industry’s biggest pain points and we already have some of the world’s biggest shippers as our partners. Go to bearing.ai to learn more.

3-4/2024 | Baltic Transport Journal | 51

Interview with Diana Barrios, Acting Head of Membership, WindEurope

The faster & safer, the better

by Przemysław Myszka Wind energy has truly become the hot topic during port conferences. Whereas it demands from businesses proper infrastructure, machinery and people, the general sentiment is that it pays well, all the while it also, naturally, helps to green the economy, including employment opportunities.

We are talking with WindEurope’s Diana Barrios about where the market stands today, where it should find itself in just a couple of years, how ports fit into the picture, as well as what are the main obstacles to setting up more wind turbines and what are the solutions to these hurdles.

What is the current state of the European wind energy market, on- and offshore?

Wind energy accounted for 19% of all the electricity consumed in the EU-27 last year.

Europe now has 272 gigawatts of installed capacity, of which 34GW is offshore. In 2023, we saw encouraging progress, with the addition of an all-time high of 18.3GW, including a record 3.8GW of offshore power. Of that figure, 79% were farms on land, and we can expect onshore to stand for two-thirds of the future installations.

That said, the 18.3GW figure represents just over half of the capacity that should come online per year if we want to achieve the 2030 climate & energy targets of 425GW. Looking ahead positively, we see certain signs that more and more capacity will be added out there in the open seas.

The challenges the entire wind energy industry faces lie in that gap between reality and ambition. One of them is the lack of cost inflation indexation. Permitting delays would be another; simplifying the process would surely enable the sector to set up 52 | Baltic Transport Journal | 3-4/2024

more turbines and in a shorter span of time.

Poorly designed auctions are the third major obstacle. Operators need the assurance that their projects will yield profits, which will result in component orders. Companies in charge of wind energy projects are still more than willing to invest in this type of business – and so are the manufacturers of various elements (among others, cable producers are doubling their capacities). In short, the industry is playing its part in meeting the higher installation target.

There are high hopes that digitalisation will help to make the permitting process go more smoothly. France, Germany and Spain have, in particular, ‘gone digital’ in recent years. WindEurope has also worked with the European Commission to make digitalisation part of the Wind Power Package – and to push it through the national level, too. Then there is a certain positive ‘COVID legacy,’ namely faster permitting in the so-called acceleration areas for renewables. In essence, it functions as a cap on the length of permitting, meaning the process must go faster.

Our organisation has developed the Easy Permit tool to aid the process.

Concerning auctions, the industry asks for cost inf lation indexation to account for the price volatility that can hit the market on short notice. Pre-qualification criteria, non-price criteria, and avoiding negative bidding are also good in-auction recommendations to bring more certainty into wind energy project development.

What is the role of ports in getting more wind energy online?

Ports are central to developing the wind energy sector, on- and offshore. In the past, when turbines were smaller, they acted as transhipment points. Nowadays, as components get bigger, taller, heavier, and longer, ports are also becoming manufacturing and assembly hubs. By 2030, ports will have to be supporting the installation of up to 15GW of offshore wind energy annually, up from today’s 3.04.0GW. Infrastructure investments will be what gets them there. Innovation will be

MARITIME

crucial, for example, having a digital twin to simulate the optimal use of what a port currently has – and what to invest in to best utilise the space they’ve got for development. Vertical storage can be another game-changer capacity-wise. Planning is crucial as well – to make the logistics as frictionless as possible. Cargo-handling equipment producers are also designing machinery tailored to the specific needs of moving these enormous elements.

But even if a port invests in the best infrastructure and technology, it won’t be able to handle all the wind energy projects, not to mention the diverse needs of maintenance, service, decommissioning, turbine upgrades, etc. The port sector must thus cooperate. New players will only benefit from learning from others, while those established will execute more projects by ‘outsourcing’ some of the work, say, storing a portion of the components in another harbour. WindEurope’s experience is that ports do really cooperate instead of competing. The wind energy pie is just too big for any single port to eat alone. Interestingly, ‘our’ Port Platform was initiated by seaports themselves. They approached us in 2017 asking whether we could create such a forum that would bring them under one umbrella to share best practices and discuss challenges (one of the latest is handling floating offshore wind farms, the components of 3-4/2024 | Baltic Transport Journal | 53

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which can be even larger than your standard ones). The ports, in turn, were prompted by project developers and component manufacturers who needed assurance that they would have the infrastructure by the sea to erect farms.

The Port Platform was kicked off by six ports; today, it has 35 members. Each year, we try to have two-to-three site visits; already in 2024, we were in Bilbao and Port-la-Nouvelle, eyeing a port in Northern Europe for later this year.

These are very open, knowledge-sharing meetings. We also organise workshops with various stakeholders from across the industry, including one annually on supply chain issues. We always try to set up them in a manner that targets finding concrete solutions to given challenges.

How much does it cost to become a wind port?

Becoming an offshore wind energy port is a case-by-case venture. The way it happens today is that newcomers ask their more experienced counterparts where to begin, for example, how much would it 54 | Baltic Transport Journal | 3-4/2024

cost infrastructure- and equipment-wise.

We have a rough estimate of the expenses needed to gear up the port business to serve the wind energy market, so it can help achieve the 2030 target and the subsequent installation demand: 8.5 billion euros to get at least 50 port facilities by this decade’s end.

Concerning who will put such an enormous amount of money on the table, the European Investment Bank (EIB), for example, has actively supported such investments. We have worked with the EIB on pinpointing the supply chain areas in need of financing to keep the wind energy ball rolling. The European Commission, through the Connecting Europe Facility and the Trans-European Transport Network (TEN-T), can certainly play a supporting role, too. We very much welcome the proposal to view TEN-T ports not solely through the cargo tonnage they handle but also as centrepieces in the transition towards becoming renewable energy hubs. Wind energy components, although huge, won’t generate the same amount of freight traffic in tonnes as solid or liquid (fossil) fuels. Yet, without

them, Europe’s green changeover won’t be possible. Taking that into account is a move in the right direction. EU Member States have their particular green agendas to pursue, so we’ll see investments in offshore wind energy infrastructure coming from the side of national governments as well. And, naturally, private companies (or private-public), such as terminal operators, are also willing to invest to get prepared for what seems to be a real wind energy boom.

What is the impact of wind energy outside port fences?

Each installed offshore turbine generates €20 million for various economic activities.

The wind sector has thus far created some 360 thousand jobs in Europe, of which 77 thousand are offshore. Given the 2030 goal, this number needs to go over 560 thousand.

The energy transition creates new employment opportunities for struggling sectors, fishing being one of them. These people, for whom the sea has provided for generations, can continue earning their bread out there offshore but

MARITIME

in a different occupation. Other local experts, such as engineers and technicians, are also very valuable as one can carry out repairs on the spot rather than sending an entire component back to the producer. Interestingly, the new Belgian auctions contain the non-price criterion of local community involvement. Project developers will have to invest early in people who will afterwards be engaged in constructing and operating the farms.

A classic win-win situation. Organisations involved in research are also benefiting from offshore wind energy projects. In the future, these structures can also become tourist attractions. Then, there is the possibility of upgrading the farms with floating photovoltaic stations, a whole new business that is already in the making.

Of course, offshore wind energy has its own digital layer. Data collection for optimal performance is one thing (and definitely artificial intelligence will become increasingly popular here); another would be automation, for instance, in surveying the marine environment ahead of potential construction. Digitalisation will be pivotal in bringing down operational &

maintenance costs, which nowadays can stand for as much as 30-40% of OPEX. WindEurope has a task force devoted to all things digital.

What is your organisation’s take on the European Commission’s inquiry into Chinese suppliers of wind turbines under the new Foreign Subsidies Regulation?

On that occasion, Margarethe Vestager, Commissioner for Competition, was very explicit that the EU must avoid repeating the mistakes it made in losing its solar manufacturing industry. Apart from the investigation, what are some of the other challenges?

The European Commission promises to be very vigilant in maintaining a level playing field as far as Europe’s wind energy market is concerned. Its investigation is about uncovering direct or indirect market distortive subsidies granted by EU or non-EU economic parties that apply to products sold on the EU market. The probe is ongoing, so we’ll see whether it will bring about any penalties. For sure, it’s a clear signal the EU won’t tolerate price dumping.

NATO and national defence forces are also observing wind energy closely to protect this critical infrastructure physically but also against cyber threats. Radars and other military sensors are already installed on turbines; in Belgium, for instance, this is mandatory. WindEurope encourages states to build cyber protection features into energy equipment procurements. Our organisation’s Defense Task Force works on securing the infrastructure and providing sound cooperation between the various stakeholders and the military. Supply chain resilience will be key, too. The European wind energy industry must be sure that it has the resources to keep ramping up the production of wind turbines.

Despite these and other challenges, WindEurope is excited to see the latest progress and how it will speed up, including in the Baltic Sea (where it was recently pleased to welcome Liepāja and Ventspils to the Ports Platform). The region has an enormous untapped wind energy potential of 93GW. Today, the Baltic Sea only hosts wind turbines with a total capacity of 3.0GW. 3-4/2024 | Baltic Transport Journal | 55

The new regulation leaves DoC holder with fuel liabilities risk

FuelEU for thought

by Steve Marshall Implementation of the FuelEU Maritime Regulation 2025 presents an accountability dilemma for shipping companies. They are currently the Document of Compliance (DoC) holders that will be held responsible for fuel selection and could, therefore, face penalties – contrary to the ‘polluter pays’ principle.

F

uelEU is intended to promote the uptake of zero- and low-carbon fuels as well as the adoption of sustainable technologies like wind power for fuel efficiency by mandating progressive reductions in the greenhouse gas (GHG) intensity of energy used by ships over gross tonnage of 5,000 compared with a 2020 baseline, rising from 2% next year to 80% by 2050, with penalties for non-compliance.

“Shipping companies must start preparing now for the regulation as they face the 31 August deadline to submit a monitoring plan to track the fuel type and consumption for each EU voyage for every vessel as required by FuelEU,” says Albrecht Grell, Managing Director of the Hamburg-based OceanScore maritime technology firm.

Significant cost exposure The default responsible entity for FuelEU compliance remains the DoC holder – typically the technical manager – who has operational responsibility for the ship and handles compliance with a wide range of EU regulations relating to maritime safety under the International Maritime Organization’s International Safety Management Code.

The DoC holder is also responsible for reporting emissions and other voyage data under the EU’s Monitoring, Reporting and Verification regime that will underpin FuelEU, which apparently makes this entity well-placed to manage data collection and reporting processes for the new regulation.

“However, this poses the risk of significant cost exposure for the DoC holder in the event of heavy penalties due to non-compliance with carbon intensity targets, which would far exceed the financial capacity of most ship management companies. They are in no position to carry the related burdens – neither financially nor contractually,” Grell explains. He says the clock is ticking as the DoC holder can be slapped with a penalty for each vessel with a compliance deficit as of June 2026, based on the FuelEU report 56 | Baltic Transport Journal | 3-4/2024

due to be submitted in March that year for the preceding 12-month reporting period.

A similar scenario with the EU ETS resulted in an implementing regulation that designated the shipowner as responsible for compliance, with the option of reassigning this responsibility to the DoC holder. But the EU’s Directorate-General for Mobility and Transport has reportedly stated that “the responsible entity will not change” as the European Commission’s powers to make such a change by an implementation regulation are limited under FuelEU. “The DoC holder does not though have any influence or control over the type of bunkers used on a vessel or investments made and therefore, based on the EU’s overarching ‘polluter pays’ principle, should not be held accountable for the financial impact of those decisions,” Grell stresses. He furthers, “Rather, the consequences in terms of penalties should be allocated to the parties making such decisions, with either the shipowner or charterer responsible for fuel choice depending on the charter party, so this would require a similar mechanism to the EU ETS.” Ensuring accountability As things stand, though, the most pressing task is to put in place responsible reporting and verification procedures for each ship affected by FuelEU, giving priority to the submission of the monitoring plan.

As well as costs incurred due to undercompliance with FuelEU intensity targets, or compliance deficit, there is also surplus from overachieving these goals that can either be banked and carried over for future use or shared with other vessels that have deficits under a pooling arrangement – different from commercial pooling – including non-owned units, to gain compliance for all pooled vessels provided there is a combined surplus.

Consequently, contractual arrangements need to be in place both to ensure cost accountability for the appropriate parties in the case of a deficit and to assign the benefits

of surplus to the entities responsible for fuel procurement, whether this is the charterer or registered owner – with data quality a key factor. This will require amendments to the charter party to assign FuelEU costs and benefits, as well as to ship management contracts to align responsibility and expenditure.

To avoid penalties and gain an advantage over competitors, shipowners can adopt structural measures like wind-assisted propulsion and draw (green) power from the shore. Respective investment assessments should be prepared, including a technical assessment of the suitability for the specific vessel and trading area, as well as the availability of cold ironing at likely ports of call. An additional FuelEU requirement for zero-emission at berth will be compulsory from 2030 for container and passenger vessels. Identifying sources of alternative fuels and running the respective business plans should be part of the same preparations from an operations perspective, according to OceanScore.

Simulation-tracking-transparency “However, the immediate priorities for shipping companies are to familiarise themselves with the complexities of the new regulation and understand how it might impact their operations and costs. This can be done by simulating decisions in areas such as investments, vessel deployments and alternative fuel usage to decide on the optimal way forward,” Grell says.

He believes it is necessary to set up a management solution to track the compliance balance and emerging penalties and determine accountability, so these costs can be allocated through automated invoicing.

Smart simulations can also be conducted to ensure the respective clauses in charter parties are correct and that there is full transparency around these processes and resulting penalty exposures by the time FuelEU is implemented on 1 January 2025.

While shipping awaits final adjustments to the regulation and BIMCO clauses to

MARITIME

clarify the contractual side, OceanScore has developed a new solution to support shipping companies with planning for the impact of FuelEU on a per-vessel and fleetwide basis, assessing the current exposure, simulating the effect of different fuels and investment strategies, and planning for how to handle remaining compliance balances (also through pooling). This is aligned with OceanScore’s market-leading ETS Manager, including data on vessel, charterer, and charter parties, as well as bunker consumption.

Once FuelEU enters force next year, tracking the development of compliance balances and resulting penalties will become of paramount importance; the planning of future operations and bunker procurements needs to be covered, as well as charterers invoiced based on charter party clauses and incurred compliance deficits.

Leveraging tech and global reach OceanScore’s upcoming FuelEU Planner will facilitate all these processes, along with engagement between the three main parties in relation to FuelEU transactions – owners, charterers, and managers – to secure accountability. While assessing the initial FuelEU compliance balance given today’s operational patterns, the new solution will also be able to simulate optional scenarios for 2025 to assess their implications for compliance balance and expenditure.

“FuelEU will also require a new level of collaboration in the industry, given compliance pools can be formed beyond current fleets of owners and managers, while alternative fuels must be matured and onshore power options explored,” highlights Grell. “As well as developing smart solutions to navigate regulatory complexity, OceanScore is leveraging its global reach to facilitate new industry partnerships that will be necessary to help shipping companies meet the challenges of the upcoming FuelEU regime,” he sums up.

New sustainability regulations for shipping create substantial financial risks and require significant resources to tackle. OceanScore’s solutions and services simplify and streamline your compliance. Our end-to-end tools, powered by high-quality data, make each step digital, transparent, straightforward, and aligned with stakeholders’ needs. Visit oceanscore.com to discover more.

3-4/2024 | Baltic Transport Journal | 57

FuelEU Maritime explained

Be prepared for the next wave

by Stamatis Fradelos, VP Regulatory Affairs, ABS The FuelEU Maritime Regulation is a technical measure designed to decarbonize maritime transport by setting concrete objectives. It focuses on three primary goals: to reduce the greenhouse gas (GHG) intensity of the energy used on board on a well-to-wake (WtW) basis, to promote the use of onshore power supply (OPS) in main European ports, and to incentivize the uptake of renewable fuels of nonbiological origin (RFONBs) and wind-assisted propulsion (WAP).

S

tarting from 2025, ships operating in the EU must fulfil their energy needs with fuels of GHG intensity on a WtW basis (measured in grams of carbon dioxide equivalent per megajoule) below a sliding scale threshold value subject to a five-year percentage reduction with respect to a reference value, which is based on the average energy used on board in 2020: 91.16g CO2e/MJ. The Regulation applies to the entire energy used on voyages between EU ports and while the ship is at berth in an EU port, as well as half of the energy used on voyages between an EU port and a port of a third country.

Scope, obligations, calculations, and penalties The Regulation covers GHG emissions from WtW, meaning the release of CO2, methane (CH4) and nitrous oxide (N2O) into the atmosphere. CH4 and N2O are converted into CO2 equivalents, multiplied by the global warming potential of 100 years (GWP100), which is equal to 25 for CH4 and 298 for N2O, as defined in the Directive (EU) 2018/2001 (§4 of Part C of Annex V). However, the Regulation is expected to be revised, with the aim to align with the global warming potential values for application under the EU’s Monitoring, Reporting and Verification regime and the EU Emissions Trading System referring to Directive 2020/1044 and therefore, GWP will become equal to 28 and 265, respectively.

The WtW emissions are calculated as the sum of well-to-tank (WtT) and tankto-wake (TtW) emissions. Annex II of the Regulation contains default WtT emission factors for fossil fuels, biofuels, and RFNBOs. Sustainable biofuels and RFNBOs can either use the default values as provided in Annex II and the RED II Directive, or actual values certified under a scheme that is recognized by the European Commission.

58 | Baltic Transport Journal | 3-4/2024

Fig. 1. The FuelEU Maritime Regulation’s GHG intensity limits until 2050 (2020 reference of 91.16g CO2e/MJ) 100 91.16

89.34 85.69

80

77.94

60

62.90

40 34.64

20 18.23

0 2015

2020

2025

2030

2035

2040

2045

2050

2055

Source for all figs.: ABS

For fossil fuels, on the other hand, only the default values can be used.

Onboard carbon capture (OCC) is not yet specified in the Regulation, but article 30.2(i) provides that the European Commission shall consider including OCC in the calculation of the GHG intensity of the energy used on board and of the compliance balance, subject to the availability of a verifiable method for monitoring and accounting of the captured carbon.

Annex II also contains the default TtW emission factors for fossil fuels, biofuels, and RFNBOs. Companies may diverge from these – apart from the TtW CO2 emission factors for

fossil fuels – provided that actual values are certified by laboratory testing or direct emission measurements. Figure 2 presents the WtT and TtW GHG intensity of various fuels and fuel mixes compared to the applicable limits.

From 1 January 2030, container ships and passenger vessels above the gross tonnage of 5,000 moored at the quayside in an EU TEN-T port of call shall cover their electrical power demand at berth using OPS. From 1 January 2035, the obligation to use OPS at berth will be extended to non-TEN-T ports where the quay is equipped with OPS. Companies should be responsible for monitoring and reporting the amount and

Well-to-wake

Production emissions

Distribution/transport emissions

Well-to-tank

Operational emissions

Tank-to-wake

MARITIME Fig. 2. GHG intensity of different fuels and fuel mixes GHG WtT

GHG Intensity [gCO2e/MJ]

GHG WtT 2050

7.8

LPG

2040

18.5

LNG (LP 45 Otto)

18.5

MDO/MGO

65.3

18.23

102.9 75.8

71.6

4.3

121 132 20

30

40

50

60

70

GWP Ch

80

31 August 2024

Verifiers Verify the submitted monitoring plan

Companies

31 January 2026

Verifiers

Verify the submitted monitoring plan report, calculate compliance balance

Companies

Start monitoring according to the approved monitoring plan

Verifiers

Companies to notify in the FuelEU database the intention to include the vessel in a pool

Verifiers

Verify submitted data, record, FuelEU report, calculate compliance balance

Record any advance compliance surplus Companies to notify in the FuelEU database the intention to include the vessel in a pool

Verifiers

31 April 2026

Verify submitted data, record, FuelEU report, calculate compilance balance

Companies 30 June 2026

Record in FUelEU database composition and allocation of local pooled compliance to each vessel

Payment of possible remedial penalites to Administering Authority and issue FuelEU Document of Compliance

Verifiers

Issue FuelEU Document of Compliance (DoC), in case no remedial pentalties arise

type of energy used on board by ships and document the method used in a monitoring plan. The plan, as well as the annual emission reports, shall be submitted to and assessed by the verifier according to the Figure 3 timeline.

Ships with a higher GHG intensity than the threshold must pay a remedial penalty proportional to their compliance deficit, i.e., the difference between the reference GHG intensity and the actual one, multiplied by the energy consumption. Figure 4 shows the daily compliance cost for a ship using lowsulphur fuel oil (LSFO) based on its daily bunker consumption. If a vessel has a compliance deficit for two consecutive reporting periods or more, the remedial penalty will be increased by 10% every consecutive reporting period until the ship achieves a compliance surplus for the increase factor to reset.

74,077

• 91.16g CO2e/MJ reference value • Vessels will continue to use LSFO • Following GWP values:

55,559

1.0 25.0 298.0

775 1,163 1,939 2,908 3,877

1,711 2,667 4,279 8,418 8,557

20,000

2025

2030

3,700 5,551 9,251 13,871 18,502 2035

20 t/day

30 t/day

2040

50 t/day

75 t/day

37,034

40,000

14,815 22,223

50,000

7,561 11,342 18,904 28,355 37,807

60,000

30,000

140

95,137

Fig. 4. Daily FuelEU Maritime compliance cost for a vessel running on low-sulphur fuel oil – in euros

GWP CO2 GWP CH4 GWP N2O

130

2

Companies 31 March 2026

120

298

Verify the submitted monitoring plan

Submit FuelEU report to verifier (information Article 14)

110

GWP N O

4

25

Companies 1 January 2025

100

2045

47,583

Submit the monitoring plan to the verifier

90

71,353

10

19,027 28,541

0

Companies

Cost €

34.64

2050

91.6

Fig. 3. Timeline of the FuelEU Maritime Regulation

0

2045

71.6

* e-Methanol produced from back-liquor gasi cation integrated with pulp mill, WtT = -58.75g CO2e/MJ. ** Hydrotreated oil from waste cooking oil, WtT = -54.82g CO2e/MJ. *** Biomethane for transport (open digestate, no off-gas combustion), WtT = -28.68g CO2e/MJ.

10,000

62.90

90.6

71.6 31.3

-10

70,000

2040

69.7

78.1 13.5

Ammonia (NG)

80,000

77.94

91.0

92.2

Hydrogen (NG)

90,000

85.69

2035

79.0

Methanol (NG)

100,000

89.34

2030 83.8

76.2

-7.2

30% e-Methanol*

Reference

2025

72.5

13.2

HFO

2020

61.6

14.4

LSFO

Intensity limit (grCO2eq/MJ)

76.1

57.3

LNG (LP 25 Otto)

Year 73.7 57.6

4.3

30% Bio-LNG (HP 25 Diesel)***

2035 20302025 2020

65.9 18.5

LNG (HP 25 Diesel)

30% WCO & 70% LSFO**

2045

2050

100 t/day

3-4/2024 | Baltic Transport Journal | 59

MARITIME

0 0 0 0 0

801 1,202 2,004 3,005 4,007

20,000

0

2025

2030

2035

20 t/day

Will renewable fuels (incl. ‘blue’ ones) be incentivized?

The production costs of RFNBO are currently much higher than the market price of conventional fuels. Therefore, two measures are provided to ensure the support for the uptake of sustainable RFNBOs. First, a ‘multiplier’ until the end of 2033, allowing the energy from RFNBO to count twice. Second, a sub-target of 2% RFNBO minimum use of the total yearly energy use by a ship, which shall apply as of 2034 if the share of reported RFNBOs used by ships is less than 1% by 2031.

This combination of measures to support RFNBOs is intended to give ship operators and fuel suppliers a market signal for investment in this type of renewable, scalable, and sustainable bunker. However, as per Article 10.1(b), an RFNBO (and low/recycled carbon fuels) should meet the GHG emission savings threshold set out in the RED II Directive (at least 70% savings, which corresponds to max.

28.2g CO2e/MJ WtW GHG intensity based on the 94g CO2e/MJ fossil fuel comparator), otherwise it shall be considered as a fossil fuel.

Biofuels and biogas can be used as a compliance option for reducing the WtW average GHG intensity of the energy used on board for meeting the GHG intensity limits on a ship or pool level. However, as per Article 10.1(a), biofuels and biogas should comply with the sustainability and GHG emissions-saving criteria set out in the RED II Directive and should not be produced from food and feed crops; otherwise, they will, too, be regarded as a fossil fuel.

FuelEU Maritime will also count the possible contribution from low-carbon synthetic fuels derived from low-carbon hydrogen, including, or not, carbon capture and storage (CCS). Eligibility of ‘blue fuels’ (synthetic fuels derived from fossil-based hydrogen + CCS) is considered in Article 10(2) where 60 | Baltic Transport Journal | 3-4/2024

2,900 4,349 7,249 10,874 14,489

30,000

30 t/day

2040

50 t/day

75 t/day

it is stated that other than biofuels, biogas, RFNBOs, or renewable/low-carbon fuels, also fuels certified in accordance with EU’s legal acts concerning internal markets in renewable and natural gases and in hydrogen, establishing a GHG emission savings threshold and an associated methodology to calculate GHG emissions from the production of such fuels, will be eligible to contribute to the reduction of the GHG intensity of the energy used on board. In addition to blue fuels, low-carbon synthetic fuels derived from nuclear electricity will be covered.

What about wind power?

FuelEU aims to foster innovation and support research for emerging and future innovation, such as WAP: rotor sails, kites, hard or rigid or soft sails, suction wings, or turbines.

The impact of WAP on the GHG intensity of the energy used on board is reflected via the ‘fwind’ factor in the GHG intensity calculation formula: GHG intensity mm mm mm m mmm mm m . Here, fwind is the reward factor for WAP, which is determined based on the ratio of the available effective power (PWind) and the propulsion power of the ship (PProp): Reward factor fwind

PWind PProp

0.99 0.97 0.95

0.05 0.10 ≥0.15

14,622 21,933

40,000

36,555

50,000

10,000

71,493

1.0 25.0 298.0

6,971 10,457 17,428 26,143 34,857

EUR

60,000

GWP CO2 GWP CH4 GWP N2O

2045

47,662

70,000

19,069 28,597

80,000

• 91.16g CO2e/MJ reference value • Vessels will continue to use LSFO, with WAP • Half EU emissions • Following GWP values:

73,110

90,000

54,833

100,000

95,323

Fig. 5. Daily FuelEU Maritime compliance cost for a vessel running on low-sulphur fuel oil and equipped with wind-assisted propulsion – in euros

2050

100 t/day

Figure 5 shows the reduced daily compliance cost for a ship using LSFO fitted with a WAP with a reward factor fwind = 97%.

Flexible compliance?

If a ship achieves a compliance surplus, the company may ‘bank’ and use it for the same ship in the following reporting period. In a case where the vessel has a compliance deficit, the company may borrow an advance compliance surplus of the corresponding amount from the next reporting period. However, in the next reporting period, the borrowed compliance surplus must be multiplied by 1.1 and subtracted from the same ship’s balance.

Furthermore, the compliance balance for GHG intensity and sub-target of RFNBOs can be pooled. Pools can consist of vessels of the same or different companies. Two different pools can be used to comply with the GHG intensity target and RFNBOs subtarget. A pool is only possible if total pooled compliance is positive ships that had a compliance deficit do not have a higher compliance deficit after the allocation of the pool, or if ships that have a compliance surplus do not have a compliance deficit after the allocation of the pool.

In summary, shipowners need to chart their FuelEU Maritime courses in great detail. If they do it correctly, they will not only avoid penalties and secure minimal compliance but will open the possibility of riding atop the market wave created by the new environmental rules.

Founded in 1862, ABS is a global leader in providing classification services for marine and offshore assets. Our mission is to serve the public interest as well as the needs of our members and clients by promoting the security of life and property and preserving the natural environment. ABS’ commitment to safety, reliability and efficiency is ever-present. Visit ww2.eagle.org to learn more.

ECOLOG-Deltamarin liquid CO2 carrier co-op

MARITIME

Paving the green path

by Fitzwilliam Scott To limit global warming to 1.5°C, the world needs to permanently sequester or reuse 7.6 gigatonnes of carbon dioxide annually by 2050. ECOLOG, a mid-stream CO2 and liquid H2 services company dedicated to achieving net zero and supporting urgent action on climate change, offers a viable solution through carbon capture, usage and storage (CCUS) to achieve this target.

E

COLOG is a venture emerging from a group of companies with a rich industrial shipping and infrastructure history. The group is renowned for its safety, reliability, and strong financial backing, making it attractive to customers and tier-one investors. Supported by one of Greece’s leading multi-generational shipping families and top talent management, ECOLOG eyes becoming a global leader in mid-stream CO2 and liquid H2 services.

The plan The company plans to aggregate CO2 from multiple customers into key industrial hubs worldwide, scaling operations and establishing large central CO2 liquefaction facilities.

Leveraging volume aggregation to reduce costs, ECOLOG will transport CO2 using various-size carriers, allowing for CO2 to travel farther at a lower cost, opening the ability to choose competitive CO2 destinations.

ECOLOG aims to develop and own a network of infrastructure, including import and export CO2 terminals designed with leading technical engineering firms, such as Bechtel,

Wison, and Bilfinger. The land-based terminals will feature a re-liquefaction capacity of 5.0 million tonnes per annum, expandable to 10mt, with temporary storage ranging from 24,000 to 180,000 m3 capacity. ECOLOG has also designed floating liquefaction facilities to accommodate land-restricted areas or to facilitate expedited solutions.

The ECOLOG team is developing tailored designs for the following CO2 aggregation mid-stream solutions: a liquefaction export terminal in Northern Europe (5.0-10mt/year), an import terminal in the US (5.0-10mt), a liquefaction terminal in South-East Europe (5.0mt), and a floating liquefaction terminal also in Southeastern Europe (5.0mt).

The designs “ECOLOG has strategic partners along the CCUS supply chain. Together with them, the company has developed a range of liquid CO2 carriers to suit different trade routes.

ECOLOG focuses on delivering the lowestcost transportation of liquid CO2, with vessels minimising emissions either through

the carbon capture technology or low-carbon fuels,” underlines Panos Deligiannis, the company’s Head of Shipping.

ECOLOG has actively collaborated with Deltamarin on developing an intra-EU, short-range (15,500 nautical miles; nm), lowpressure (8barg, -55°C), shallow-draft (nine metres), 22,000 m3 capacity LCO2 carrier. This 190 by 28 metres design utilizes liquefied natural gas as (dual-) fuel and features a system for drawing shore power plus wind assistance.

The design maximizes energy integration, minimizing at the same time greenhouse gas emissions. An approval in principle was issued for this design in 2024. “To develop something which is unique and integrate the latest technologies into Deltamarin design is the path to the green future,” says Mauri Harki, Senior Adviser at Deltamarin.

Additionally, in partnership with Hanwha Ocean (who developed the hull and cargo tank design) and Babcock (contributing their expertise on the cargo handling systems and integration), ECOLOG presented the 40,000 m3 LCO2 carrier: 240 by 35.3 m, 18,800 nm of range.

3-4/2024 | Baltic Transport Journal | 61

Baltic Ports Conference 2024: shaping a geopolitically and environmentally aware Baltic maritime industry

by Monika Rogo, Communication Manager, BPO Two days, four sessions, multiple expert speakers, and a focus on crucial topics for the port industry in the Baltic Sea region (BSR) – this is what the upcoming Baltic Ports Conference looks like in a nutshell. It will be the perfect time to assess the current situation of regional ports and to predict their future against the backdrop of geopolitics, shipping trends, transport policies (including the green ones), and the energy transition. Book 4-6 September in your calendar and join us in Klaipėda for the biggest annual event organized by the Baltic Ports Organization (BPO).

R

ight after the summer holidays, we gather for the most important BPO meeting. As every year, this time, we will also meet to talk about the topical issues for the port sector and to exchange experiences. “Klaipėda is proud to host this year’s Baltic Ports Conference. Today, more than ever before, we feel the growing strength of BPO cooperation. With your proactive involvement and participation, we are confident to have a thought-provoking and insightful event for a more competitive Baltic ports’ 62 | Baltic Transport Journal | 3-4/2024

alliance. The Port of Klaipėda welcomes all BPO Members, speakers and industry players to our vibrant city!” invites Algis Latakas, the Port of Klaipėda’s Director General.

The content We will begin our annual gathering with an evening welcome reception on 4 September. This is the best introduction to the following two days, packed with presentations, discussion panels, and networking opportunities.

We live in very dynamic times. That

is why we want to address many pivotal affairs during the conference and try to chart what will be significant in the near future. The growing strategic importance of the BSR is already a fact. Therefore, a geopolitical and economic outlook of the region will be discussed during the first day’s sessions. The Ukrainian context will be an important anchor here – we will take up the topic of exporting goods from Ukraine and the state of the Baltic port market two and the half years after Russia’s aggression. We will also talk about security challenges and their potential

impact on regional trade. Shipping and port market trends in the BSR and Europe will also be one of the main discussion points. Furthermore, we will put the spotlight on maritime transport from the regulatory angle. We will also take a closer look at the India-Middle East-Europe

Economic Corridor, likewise the one binding the Baltic, Black, and Aegean seas.

An evening cocktail will top Day One. The second day will focus on greening the maritime industry and the role it will (should) play in the energy transition.

Among others, the Port of Klaipėda will

present environmental initiatives that generate socio-economic value. The costs and benefits of green port strategies will also fall under scrutiny. The 2024 instalment of the Baltic Ports Conference will culminate in a port boat tour. Iki pasimatymo Lietuvos pajūryje!

3-4/2024 | Baltic Transport Journal | 63

Welcome new Members!

by Monika Rogo, Communication Manager, BPO The Baltic Ports Organization (BPO) has recently grown by welcoming new Members. First, in August 2023, we confirmed the membership of three new partners: DB Port Szczecin, GISGRO, and the Port of Gävle. In May this year, we saw the addition of two other ports: Gdańsk and Södertälje. Welcome on board, everybody! Currently, BPO ranks over 50 Members representing the most significant ports and stakeholders in the Baltic Sea region.

DB Port Szczecin DB Port Szczecin is a universal cargo handling terminal active in the Port of Szczecin. We take care of more than one million tonnes per year, mostly general cargo (incl. project), bulk goods (also agro), and containers. We aim at maximally diversifying our portfolio and actively work at developing intermodal connections from our region across the North-South corridor. DB Port Szczecin is owned by DB Cargo Polska, a subsidiary of the railway group Deutsche Bahn.

Head to portszczecin.deutschebahn.com to learn more.

Photo: GISGRO

64 | Baltic Transport Journal | 3-4/2024

Photo: DB Port Szczecin

GISGRO GISGRO is a pioneering company that specialises in GIS- and cloud-based Port Management Information Systems (PMIS).

The GISGRO Digital Twin is a new-generation platform that offers the most handy & insightful visual data management, analysis, and sharing tools. Our company helps ports optimise processes for efficiency, safety, and sustainability. Founded in 2010, we became a respected surveyor in 3D underwater inspections for ports. In 2022, GISGRO shifted its focus to Softwareas-a-Service (SaaS) and acquired the top Finnish port ERP software company. Today, GISGRO Ltd. is a global player, serving customers in 50 smart ports across 12 countries. Click gisgro.com to discover more.

The Port of Gävle The Port of Gävle – the largest logistics hub in Central Sweden – is situated only two hours from Stockholm, with comparatively little traffic or congestion. At the Port of Gävle, exports (from the region’s steel, wood, and paper industries) on their way to global markets meet input goods for industry, plus fuel, consumer goods, and project cargo that will be distributed throughout the country by (electrified) railway or road. The Port of Gävle has extensive storage areas near its quays, while a modern logistics park is ready with space for stocking and storing goods.

Check gavlehamn.se/en to learn more.

Photo: Port of Gävle

Photo: Port of Gdańsk

The Port of Södertälje With its proximity to the Swedish capital and the Greater Stockholm region through excellent infrastructure, the Port of Södertälje (a wholly owned subsidiary of the Södertälje Municipality’s Telge AB) holds a unique location in the heart of one of the Nordics’ most expansive regions. If you’re a shipper or a company trading in goods either by sea or overland (road & rail), look no further for a seaport that will get your exports & imports to & from the Greater Stockholm area (and beyond) as efficiently as possible (and in an environmentally friendly way, too, for added value). Handling of vessels, transhipment, warehousing – we’ll take care of it all. Go to soeport.se/en to join Södertälje in getting even better (and greener!) before long.

The Port of Gdańsk The Port of Gdańsk’s location makes up its successful advantage. The outer part, located directly on the waters of the Gdańsk Bay, includes deep-water (17 metres) terminals ready to welcome the largest containers, bulkers, and tankers that can sail through the Danish Straits. Over 3,000 vessels visit the Port of Gdańsk yearly, docking to unload or take all sorts of goods, from solid and liquid bulk to various containerised, wheeled, vehicle logistics, and conventional general cargo (incl. project). The port also serves ferry traffic with Central Sweden and welcomes cruise ships. With 81 million tonnes handled in 2023, Gdańsk is by far the largest EU seaport in the Baltic and second overall.

Gdańsk is also Europe’s fastest-growing seaport of the last decade, having advanced its freight traffic by 167%, and for a few years now, the Baltic’s biggest container hub.

Sail to portgdansk.pl/en to discover more.

Photo: Port of Södertälje

BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd. al. Zwycięstwa 96/98, 81-451 Gdynia, POLAND, ph.: +48 502 559 631, e-mail: bpo.office@actiaforum.pl, bpo.sg@actiaforum.pl, www.bpoports.com 3-4/2024 | Baltic Transport Journal | 65

Examples from the OSV sector of how digital systems can cut fuel consumption, increase vessel utilisation, improve charter parties, heighten safety, and more

Data opens new efficiency horizons

by Arnaud Dianoux, Founder and Managing Director, Opsealog Today, the maritime offshore market is at a crossroads, driven towards greater fuel efficiency by several factors. The market is recovering after years of stagnation, leading to vessel shortages and significant increases in day rates and bunker prices. This tightening situation is prompting shipowners and charterers to invest in data-driven optimisation and fuel efficiency. At the same time, the sector is also exploring the untapped potential of digitalisation that goes beyond cutting the bunker bill.

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igitalisation in the offshore support vessel (OSV) sector is not something ‘nice to have’ but a necessity in the face of increasing regulatory pressures and market demands. High fuel prices and day rates at levels not seen since 2008 are driving charterers to adopt digital systems for operational monitoring and fuel efficiency, aiming to reduce costs in a rapidly evolving market. Meanwhile, shipowners are 66 | Baltic Transport Journal | 3-4/2024

incentivised to maximise vessel availability to make the most of a favourable market, but high interest rates make financing and newbuild orders less appealing. Consequently, the industry is focusing on vessel life extension amidst persisting uncertainty regarding new fuels and regulations.

More data = less fuel The successful implementation of digital tools in the OSV industry illustrates

the potential of digitalisation in enhancing fuel efficiency across the wider shipping industry. Prime examples are our work with ADNOC Logistics & Services, the logistics arm of the ADNOC Group, and BOURBON, an international provider of services to the oil industry (both continental and offshore).

Opsealog’s initial proof-of-concept trial with 11 of ADNOC L&S’ vessels achieved a not insignificant 12%

TECHNOLOGY reduction in fuel consumption and CO2 emissions. These efficiencies were achieved through meticulous analysis and adjustments in operational practices, such as optimising engine running hours and implementing mooring buoys to reduce fuel consumption during idle times. These results saw ADNOC L&S embark on a long-term partnership with our company, recognising an opportunity to replace various manual reporting processes with a single digital interface to improve speed and accuracy and to support timely decision-making.

Similarly, BOURBON and Opsealog partnered to reduce emissions across the former’s 104-strong f leet through datadriven optimisation. The collaboration involves real-time f leet monitoring and enhanced digitalisation of vessel reporting processes, which enables teams to identify potential efficiency improvements and recommend best practices to ship management teams. Following a successful half-a-year pilot on 25 OSVs that saved 45-50 tonnes of CO2 per vessel each month, the agreement extends these measures f leet-wide.

These results offer a snapshot of how digital solutions can transform traditional fuel and f leet management approaches, drawing on data integration from multiple sources to enhance operational efficiency and environmental sustainability in the marine offshore sector.

The multifaceted potential The use of data-driven insights will expand beyond fuel consumption and emission reductions to optimise f leet utilisation and management more broadly.

In practice, charterers are already using digital systems to ensure that the right ship type and size is assigned to the right task and to identify specific needs for the next vessel to be chartered. For shipowners, smart data can optimise maintenance schedules to reduce costs and track the number of days a vessel is technically unavailable due to breakdowns.

One of the most promising applications of digitalisation in maritime will be in helping to determine if performance clauses defined in charter party agreements have been met. As costs increase, pressure to monitor each party’s obligations and enforce contract performance is likely to grow from all sides. This shows the importance of a trusted, independent platform to monitor and report on all parties’ contractual obligations.

Furthermore, digital systems will play

a pivotal role in upholding health and safety standards. This includes collecting data on drills conducted on board and enforcing stop-work policies, which help maintain safety protocols and enable teams to address safety concerns proactively. This highlights the multifaceted potential of data, supporting not only operational, financial, and environmental goals but also empowering the industry’s most valuable asset: its people.

Nurturing the culture of digital However, several significant barriers hinder the wider adoption of digital technologies in the offshore sector. These also offer valuable insight into how the broader maritime industry can overcome the challenges of digitalisation.

To sustain the momentum of and accelerate digitalisation, it is essential to address uncertainties that keep many shipowners and charterers in a ‘wait and see’ mode. Despite the abundance of digital systems available, shipowners often find themselves lacking a clear understanding of the return on investment these solutions offer and how they can potentially complement each other.

From a supplier perspective, showcasing the pragmatic business case for digitalisation is essential: highlighting it as a ‘low-hanging fruit’ that doesn’t require significant capital expenditure and can deliver immediate efficiency gains and fuel savings.

Additionally, the development of data standards for e-reporting under various global and regional regulations, such as the EU’s Monitoring, Reporting and Verification or the International Maritime Organization’s Carbon Intensity Indicator, is crucial.

While some industry-led initiatives are emerging, this process requires time and the officialisation of these standards by regulators will be vital to transition from paper and spreadsheets to fully digitised reporting.

The adoption and reinforcement of a digital culture will play a key role in driving and sustaining progress. As the number of digital system providers grows exponentially, the capacity to connect and integrate data will become increasingly important. Without interoperability,

companies’ data ecosystems risk becoming fragmented puzzles with mismatched pieces, undermining the potential benefits of digitalisation. This calls for a more collaborative approach, with greater data exchange and integration between different providers of digital systems working for the same company, ultimately benefiting the end customer.

The digital pathway As the offshore marine industry navigates market dynamics, the push towards data-driven optimisation unveils a wealth of untapped potential, stretching far beyond fuel efficiency. The pioneering efforts of companies like ADNOC L&S and BOURBON to embrace new technologies illustrate how smart data utilisation can profoundly enhance operational efficiency and environmental sustainability. The experience in the marine offshore sector also brings into the limelight the transformative potential of digital tools in revolutionising f leet management, vessel utilisation, and maintenance scheduling.

The digital revolution is knocking on the maritime industry’s door.

Lessons learned from the offshore sector’s advancements highlight critical elements necessary for widespread adoption: robust interoperability, comprehensive data integration, and the cultivation of a digitally receptive culture. Addressing existing barriers, such as the lack of standardised reporting frameworks and fragmented data ecosystems, will be pivotal. Industry stakeholders must prioritise collaborative approaches, ensuring seamless data exchange to unlock the full potential of digitalisation.

In this rapidly shifting landscape, embracing digital transformation is not just about immediate savings but a necessity for future-proofing businesses and driving innovation across the maritime sector. As digital solutions continue to advance, they offer a pathway to unprecedented efficiencies, cost savings, and environmental benefits. The maritime industry’s journey towards comprehensive digitalisation promises a future where data not only drives operational excellence but also fosters a more sustainable and economically resilient industry.

Opsealog is a French company specialising in performance management for the energy and maritime industries. Regarding the latter, Opsealog guides maritime leaders in their digital transformation, offering no-hardware-needed solutions that add to flexibility and agility by making data actionable. Head to www.opsealog.com to discover more.

3-4/2024 | Baltic Transport Journal | 67

Vollert’s shunting robots in the Baltic (and beyond)

Pulling power

by Fitzwilliam Scott Robust and economical rail loading is the name of the game for efficient port logistics and other heavyduty industrial operations. The shunting system should be as flexible as possible but also operational 24/7. In the Finnish Port of Pori, rail operators have lately started relying on a shunting robot from Vollert to move freight trains. These power pack machines capable of pulling train loads between 300 and 7,000 tonnes from the German manufacturer – remote-controlled, cable-connected, diesel-electric or batterypowered – have been in use worldwide for decades, including in other Baltic countries: Estonia and Latvia.

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n Pori, ferrous sulphate is stored and loaded in bulk in a weather-protected manner. For handling by a wheel loader, the freight trains move into a loading hall and are later made available for further transportation outside. This task has recently been taken over by a shunting solution from Vollert: the Tandem DER 150 robot. A Stage V diesel-electric drive, which powers the four electric motors on the machine’s four axles, provides the thrust.

The DER 150 has a total weight of 100 tonnes on the rails; its tensile load of 150kN allows the reliable pulling of up to 2,000t at a speed of half a meter per second.

Pori’s shunting robot is controlled remotely, enabling the wheel loader driver to operate across the entire freight train on a 500-m-long track. Besides the actual driving control, the wagon roofs can also be opened and closed hydraulically. The shunting robot’s coupling system is also compatible with both Eastern and Central European systems. Vollert ensures reliable transmission of the control data in and outside the track system through several repeaters along the 500-m-long radio link.

For optimum control of the transmission and reception power, the system automatically switches between the stations.

68 | Baltic Transport Journal | 3-4/2024

Strong, connected, weatherproof The technology is also proving its worth at Bogatyr, the largest opencast coal mine in Kazakhstan. Here, five Tandem DER 300 shunting robots from Vollert accelerate and automate rail loading. The Wi-Ficontrolled shunting machines, each with a tractive force of 300 knots, move trains with a length of around one kilometre and a total weight of up to 6,900t.

For data transmission and control, Vollert used Siemens components to set up a Wi-Fi route along the 1.3 km-long shunting network. Eleven access points with directional antennas connected via fiber optics reliably transmit the data signals from the control system to the machines and vice versa. In addition, thanks to the Wi-Fi control system, the robots can operate freely on all tracks. This enables the rolling use of the five shunting robots on the four tracks and guarantees fail-safe operation around the clock.

Remote maintenance access also enables remote control of the shunting robots and therefore fast and direct support from the Vollert service team in Germany at any time. All the robots’ performance data, such as operating hours

and consumption, can be evaluated over longer periods on a dashboard.

Bogatyr plans to increase its yearly production capacity from 32 to 40 million tonnes using the automated conveyor technology. An automatic coal wagon loading system has been installed for this purpose: two trains, each with around 70 wagons, can be loaded in parallel in just three to four hours. The staff controls the shunting robot from the loading facility. When the process starts, the coal is transported into the empty wagons of the freight train while the shunting machines continue to move. The mainline locomotive then takes over the train again for transportation to the customer while the shunting robot starts its journey to handle the next one.

Each of the five shunting machines consists of a six-axle tandem version with a control trolley and motor trolley and a drive power of 180kW. A CAT power generator, tailored to the specific requirements on site, provides the drive power.

Temperatures from -30 to +30°C, plus daily temperature fluctuations of +/-30°C, require tried and tested, robust technology. With heated components, a diesel

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VDM VLEX

Photos: Vollert; Bogatyr Robot Pro-Tandem DER 300

Bogatyr Robot Pro-Tandem DER 300

Pori Robot Tandem DER 150

tank integrated into the frame, automatic couplings and a sanding system, Vollert ensures smooth operation even under these harsh climatic conditions.

facilitates convenient access to the cab).

Here, too, steering is conveniently carried out through the control panel, by radio, or from inside the vehicle.

Making Riga dust-free In Latvia, coal-handling facilities in the Port of Riga are also gearing up with modern technology. The terminal operator SIA STREK relies on a Vollert shunting robot. The handling process was reorganized into a closed loading hall in 2018 to get rid of the dusty coal loading process in the centre of the Latvian capital. Every three to five minutes, three wagons are completely turned and emptied into an underground bunker without polluting the environment. SIA STREK noticed Vollert’s f lexible shunting solution because of its many years of positive experience at the Tallinn coal loading terminal in neighbouring Estonia.

Unlike conventional shunting locomotives of this size, STREK’s robot allows the cab driver to see both the surroundings in front of and behind the vehicle.

This means that the driver does not have to get out and shift cabs when changing direction. This is made possible by an exceptionally narrow drive unit, which ensures a clear view of the track area (a particularly low access height also

Eco-friendly robots Dust and soot avoidance are not the only issues when taking care of coal. Emissions of the drive machines themselves in loading terminals, ports, and industrial plants are also increasingly coming into focus, not least due to increasing international noise and exhaust regulations. In-plant transportation in particular poses special requirements with regard to diesel exhaust protection rules.

Vollert has therefore long been offering fullyelectric versions of its shunting robots – with identical performance values. In addition to battery-powered versions, these also include cable-connected machines for continuous outdoor and indoor use.

The VLEX road-rail robot is a special version of the emission-free range. In

Pori Robot Tandem DER 150

one-person operation, this radio-controlled all-round vehicle switches quickly and easily from track to road and back again, and, despite its compact design, enables shunting operations of up to 600t. Its inventive vehicle geometry, with articulated steering and four individually controlled wheel hub motors, makes it extremely manoeuvrable and economical. An oscillating axle ensures that all four wheels remain in continuous contact with the ground and rails so that potholes, height differences in the track, or minor obstacles can be overcome with no loss of traction. And thanks to its emission-free electric drive, the hardy solution earns its spurs both in rough railroad operations on sidings and in enclosed storage and production areas. The VLEX shunting solution has been put to use at the South Korean metro in Seoul, for shunting tank and freight wagons at Lanxess and Rheinkalk in Germany, and at a plant of the Swiss rail vehicle manufacturer Stadler.

As an innovator, Vollert Anlagenbau develops economical shunting systems for branch and connecting lines. Since the 1950s, the company’s stationary, cable-bound shunting systems have been used worldwide for the handling of railroad wagons and trains. Vollert also offers self-sufficient shunting vehicles (shunting robots), heavy-duty transport vehicles, and transfer cars for reliable and efficient processes in refineries, mines, ports, steel and cement works, in explosion protection areas, train washing facilities, and for maintenance operations. Head to vollert.de/en/home to discover more.

3-4/2024 | Baltic Transport Journal | 69

Interview with Fredrik Rönnqvist, Segment Manager for Material Handling, and Gustav Stigsohn, Product Manager, Fogmaker

Never compromise

by Przemysław Myszka There is time and place for fire: in a fireplace, a bonfire during midsummer, or as part of an artistic performance. Conversely, one would very much like to avoid property catching fire, including costly machinery engines. We are talking with Fogmaker’s Fredrik Rönnqvist and Gustav Stigsohn about their company’s system, what makes it stand out, and the latest eco-friendly version.

We also put the spotlight on Fogmaker’s history, values, and sustainability efforts. In closing, we’re discussing lithium-ion battery fires and what we can currently do about them as a first response.

How did Fogmaker come about?

The company got started in 1995 by the inventor Kennerth Samuelsson in Växjö in Southern Sweden. He was interested in rally car racing and noticed that the fire suppression systems weren’t really fit for the job. Kennerth came up with a new solution that essentially gave birth to Fogmaker.

The system we offer today is still based on that initial innovation, refined throughout those nearly three decades.

The beginnings were rough, to say the least, and the company struggled to stay afloat.

Back then, we sold five-six systems per year versus today’s 32 thousand. The development hasn’t been linear. Things got rolling in 2004 when Fogmaker entered the bus market. The last ten years were a real boom – the business truly exploded. That makes us confident when setting ambitious annual targets, which even if we miss by a small margin of, say, one million euros, it does not throw us off balance.

Long story short, Fogmaker has risen from a handful of people and scant sales to a workforce of 100 and a yearly turnover of 40 million euros. There’s still a lot of room for business growth, in- and outside Europe. Fogmaker will be significantly bigger in three-to-five years.

70 | Baltic Transport Journal | 3-4/2024

What makes up the company’s sales base?

Without a shadow of doubt, buses continue to be our sales engine, especially the European market. We are obviously very strong on our home turf here in Sweden, but concurrently see growth potential in overseas markets, particularly North America.

Obtaining approvals is the single most time-consuming thing when expanding our offer. We are, after all, talking about safety equipment that simply must work when push comes to shove. That is why different certification authorities take their time to validate the system’s reliability and efficiency. This process may take up a few months; it may consume an entire decade in the most extreme case.

Given the legal green light, which on average takes six-to-12 months, it’s mainly footwork, footwork, and even more footwork by us and our dealers.

We are also increasingly focusing on attracting customers from other industries, be it material handling, forestry, construction equipment, agriculture, mining & tunneling, and, of course, the port sector.

Regarding the latter, we’ve joined the Port Equipment Manufacturing Association.

This move gave us greater visibility in the

market and channeled more interest into our work. We have also observed a noticeable rise in safety awareness throughout the port business, not only in fire suppression systems but across the board.

What drives the company at its core?

Fogmaker is driven by expertise, commitment and integrity, the three values that resonate the most with our employees. We aspire to be the most knowledgeable people when one approaches us to talk about fire suppression systems for machines and vehicles. We are committed to doing our best in ensuring that clients get all the information, feedback, and support they need.

Integrity is about trustworthiness across everything we do – that the company is a good employer, that customers are taken care of, but also that everything is alright with our supply chain: Fogmaker does not tolerate any dodgy business. Whenever we appoint a new dealer, we always go above and beyond to make sure there’s no workplace mistreatment, bribery, child labour, illegal material sourcing, etc., involved.

Luckily, as Fogmaker has grown over the years, it has become easier to vet and distinguish between the partners we want to work with and all the rest.

TECHNOLOGY

Gustav Stigsohn, Product Manager

Fredrik Rönnqvist, Key Account Manager

Photos: Fogmaker

We have also launched the Fogmaker Academy to help the people wanting to work with the company know us: both the system and our values. In most cases, partners come to us to Sweden, with occasional trips in the opposite direction. Technicians who want to work with our system need to be certified by our trainers.

Can you walk us through what is your solution and how it works?

One could say that we have one product: the Fogmaker fire suppression system. Then again, the solution is so universal it’s scalable and modular, from small to big applications.

For the port business, that means it can be installed inside a forklift or on the biggest mobile harbour crane or a quay gantry.

The system is also customisable and our company will be more than happy to assist clients in getting the optimal set-up for whatever is in their machine park. The operational environment plays a crucial role here, too. We recommend our clients from the port and mining businesses to have a system with a higher degree of stainless steel to account for the salty conditions they’re operating in.

Fogmaker is more than keen to assist companies in their fire suppression journey.

As we only do machinery and equipment, our focus lies there. Upon client request, we will investigate what and where they’re operating. That step includes risk analysis and designing the particular set-up together with the customer’s team. Here, we are often asked why experts in fire suppression need

help, but the customer’s team are the specialists who know their machines inside out.

Their aid is invaluable. Whatever we discuss during these phases is protected by a nondisclosure agreement: all the details and designs are kept safe. Altogether, the port and shipping sectors are well aware of the many perils a fire can bring upon them. We at Fogmaker are ready to help guide them in doing their best to save lives at sea and in harbours, as well as to avoid property damage and costly downtime.

Our solution is an investment for years.

First, if checks and maintenance are carried out properly, the system is ready for action indefinitely. There are annual check-ups, small service after five years, and a big one after a decade. We are catering to the automotive sector’s demand of ten-to-15-yearlong serviceability, but there are ‘Fogmakers’ that have 20 or 25 years under their belts and are stilll in excellent condition. Worth adding is that ours is a multi-use system.

After suppressing a fire, it naturally needs to be cleaned, refilled, and its parts checked and replaced if need be. But when that’s done, the system can be used again. The aftermarket is well taken care of.

We like to use the fire triangle to explain how our high-pressure, water-based mist system works. Fire needs three components to break out: heat, fuel, and oxygen. As such, Fogmaker’s solution attacks all of them.

Water is the best agent one can use for cooling in enclosed spaces, like engine rooms.

The water-based mist evaporates, taking off heat by creating a steam that also gets rid of oxygen (one liter of water can create 1,700 litres of steam). High-pressure goes handin-hand with the system’s longer activation time: more heat is taken out through a longer period (typically 45-60 seconds compared to 20 for low-pressure solutions).

Another crucially important feature distinguishing our system is its ‘mechanical’ nature, meaning it’s operational 24/7/365 independent of any source of electricity.

Our liquid also contains certain additives, including a foaming one. It functions as a chemical fire blanket over a pool of fuel, preventing it from fuming, hence igniting.

There are anti-freeze agents (salts), too, that ensure readiness when it’s cold; and, as an added value, these also increase the overall efficiency of fire suppression.

What difference brings the Eco I version of your fire suppression system?

The liquid in the latest iteration of our system is free of per- and polyf luoroalkyl substances (PFAS). After three or four 3-4/2024 | Baltic Transport Journal | 71

TECHNOLOGY years of development and experimenting with alternatives (neither of which satisfied us), we decided that an in-housemade PFAS-free solution was the way to go. It wasn’t a simple swap, PFAS for environmentally friendly components, and we also had to adjust the nozzles to make systems with Eco I as efficient as the standard version. We burned diesel counted in cubic metres during the final finetuning tests to make sure the new product doesn’t compromise on performance.

Eco I was designed with the environment in mind and is GreenScreen Certified™ at the silver level. PFAS are extremely stable, non-biodegradable molecules that make their way into groundwater and then end up in plants and animals – and in humans as we consume them.

The EU is also debating on banning PFAS chemicals, with the decision likely to be made next year. We therefore wanted to be fully prepared for a PFAS-free future potentially coming in 2026-27.

As things stand, Eco I is slightly more expensive, but that’s CAPEX only; operation-wise, the cost is the same. Eco I must also get new certification as the liquid composition is different.

A lot of effort, time, and money went into developing Eco I, but interestingly enough, clients began asking for it faster than we first expected.

And what is the company doing on other sustainability fronts?

72 | Baltic Transport Journal | 3-4/2024

TECHNOLOGY We have got the ISO 14001 environmental management certification. Our diesel vehicles run on hydrotreated vegetable oil, while others are hybrid or electric (with all internal transports being electrical, plus bicycling is highly encouraged).

We have also changed much of the lighting to LED. Our buildings have the overall B score on an energy efficiency scale from A to G (with the latter given for the worst performance). We also recycle; our system is mostly made of aluminium and we try to source recycled materials as much as possible. We keep air business travelling to a minimum.

The supply chain team checks the suppliers not only for the best price and quality but also scrutinises their environmental practices and footprint. That and the fact our supply network is relatively short, meaning Fogmaker doesn’t have to use air freight to a considerable degree (that’s also because our system goes without electronics). That also had the added benefit of COVID not affecting us all that much. In fact, none of our clients had felt the impact (also because we usually keep our stocks high).

How do battery fires differ from other ones?

As things stand today, it is virtually impossible to suppress a lithium-ion battery fire. We aren’t aware of any solution capable of doing that. Stating otherwise should be a red f lag for any client planning to invest in a fire suppression system. Fogmaker has been very upfront and integral in sharing that inconvenient for some message.

Curiously enough, hybrid or fully electric vehicles do not burn so often as those with combustion engines, but if they do, such events immediately hit the news headlines. Statistics show that more than half of the fires start outside the battery packs. The focus in such instances is on suppressing the fire before it reaches the batteries.

Extinguishing a battery fire is so difficult because the whole thing is encapsulated.

The source of fire is, therefore, almost absolutely obscured. The best what the fire suppression industry can do now is to cool down the batteries with a waterbased mist for as long as possible to buy time to evacuate people, save other vehicles, or isolate the burning one for firefighters to employ other measures. The long activation time of our system proves very handy in such situations.

3-4/2024 | Baltic Transport Journal | 73

Wind-assisted propulsion first of the line in shipping’s race to net zero

Under full sail

by Romain Grandsart, Chief Operating Officer, OceanWings Even with the best of intentions – and the latest technologies – shipowners face a challenging time ahead as they prepare for ever-increasing carbon accountability. Wind-assisted propulsion offers them a solution today, many years before new fuels become readily available, and with no requirement for dedicated infrastructure.

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he latest HELCOM annual reporting shows that the most significant contributors to CO2 emissions in the Baltic Sea are ro-ros (ferries and pure cargo) and tankers. International Windship Association’s figures meanwhile suggest that at least 20% could be shaved off shipping’s carbon footprint if wind-assisted propulsion was rolled out across the existing fleet and integrated into newbuilds.

Enter Canopée, the first modern purposebuilt wingsail ro-ro cargo ship in commercial operation. She is a demonstration of how wind energy can help deliver the decarbonised shipping sector of the future. The 121metre vessel, designed by VPLP Design in France and built by Neptune Yards in the Netherlands, entered service last year, transporting components of the Ariane 6 space launcher from continental Europe to French Guiana for the Ariane Group. Owned by Jifmar, Canopée is operated by Alizés (a JV between two Fench shipowners: the Jifmar Group and Zéphyr & Borée). It makes up to 12 return trips to Guiana every year, carrying 5,000 tonnes of freight at an average speed of 16 knots.

Canopée is powered by two Wärtsilä 6L32 main diesel engines (rated 3,480kW each at 750 rpm) and four articulated semi-rigid OceanWings® covering 363 m2 apiece. The vessel’s hull form is optimised for sailing, with the controllable pitch propellers able to run in feather mode when the wind-assist system alone delivers sufficient power.

The proportion of wind power used 74 | Baltic Transport Journal | 3-4/2024

varies between 20% and 50%, depending on the required speed and the available winds. Canopée was designed to enable the wing sails to cut fuel and emissions by approximately 30% on her regular transAtlantic route. Data gained by OceanWings over four years of global testing indicate that the wingsail design would be capable of providing up to 50% savings on some ships and routes.

Ahead of regulatory timetables Canopée is an important demonstration of wind-assist technology because it has become operational at a time when shipowners need to act on reducing emissions, whilst engine and fuel cell manufacturers are still developing new technologies.

Meanwhile, the shipping industry is considering how well-to-wake accounting can be introduced so that CO2 emissions are not simply pushed further up the new bunker supply chain. New fuels, such as biofuels and methanol, and even hydrogen and ammonia, can be made from different feedstocks using varying processes and requiring delivery from disparate locations.

No single well-to-wake carbon accounting equation is going to represent this diversity equitably. The combination of vessel type and fuel diversity means that settling on the regulatory details is going to be a protracted process. As the International Chamber of Shipping stated earlier this year, a global greenhouse gas (GHG) pricing mechanism for shipping is urgently needed

to de-risk investment in zero GHG marine fuels and to provide billions of dollars of funds to support developing countries.

At this stage, regulators are also still coming up with ideas for fair, realistic, and achievable emission requirements that are workable across the broad range of commercial vessels in operation. As an example, Interferry recently highlighted that ro-ros are a special case for the International Maritime Organization’s (IMO) Carbon Intensity Indicator (CII). The emissions from these vessels are highly route-dependent and significantly impacted by their relatively high number of port calls. Ro-ros and ro-paxes are often purpose-built for the crossings they serve, so swapping an older vessel to a more ‘CII-friendly’ route to reduce emissions wouldn’t necessarily lower a fleet operator’s overall GHG output. This raises the spectre of making sub-optimal investments in existing ships, and Interferry is proposing an alternative compliance mechanism – fleet-balancing – which it plans to submit to the 82nd meeting of IMO’s Marine Environment Protection Committee later this year.

The emission benefits and fuel cost reductions of wind-assist technology are not dependent on regulatory timetables. Wind doesn’t suffer from the ‘chicken and egg’ conundrum that currently limits the uptake of new fuels. Bunker-agnostic, it’s a resource that can go in just about every ‘basket’ of decarbonisation solutions to meet regulatory goals, even those set as early as 2030.

TECHNOLOGY

Photos: AYRO

Photo: Jifmar Group/MaDfly/Y. Derennes

Canopée again offers an example of this expedient way forward because the latestgeneration wind-assist technology incorporated on the ro-ro is suitable for retrofitting on virtually all ship types as well as newbuildings. OceanWings’ solutions are now available across multiple segments and sizes, including for tankers, bulkers, car carriers, and cruisers. For ro-ros, OceanWings leverages its lightweight design and a very low centre of gravity to match the stability objectives of such vessels.

Sails of the future Canopée’s wing semi-rigid design and a new rigid range designed so the position of the wingsails can be changed for cargo load- and unloading in port share the same unique ‘two flap variable camber’ idea, which is already proven to deliver industryleading fuel savings over most operational scenarios and environmental conditions.

The OceanWings product range now also includes critical configuration options such as a tilt mechanism to address air draft requirements and an elevator mechanism specially designed for container ships to comply with their port operation constraints while minimising the impact on their carrying capacity. The original semirigid OceanWing design is reefable, which is a critical feature for vessels where tilting or lowering the entire wingsail is not an option.

Rigid wingsails from OceanWings are made from the same modern composite materials and follow the same manufacturing processes as wind turbine blades.

This provides advantages in resilience and lifespan, for instance, for bulkers and tankers, and leverages a global manufacturing infrastructure to drive competitive pricing and the ability to scale to large volumes. The new modular design also optimises transportation and installation.

Wing technology continues to develop, though OceanWings’ wingsails are already fully automated and require only minimal oversight from crews. Sensors on the ship can measure the wind in realtime, and software systems analyse the data (also on the go) to send instructions to the actuators controlling the wings, which can then adjust the angle of attack and the camber of each wing independently. The OceanWings® product range also features a ‘safety-by-design’ f lag mode, automatically protecting the wings and the vessel when wind or sea conditions exceed specific thresholds. As digitalisation increases, solutions such as OceanWings® also come with an on-board

routing system through an external router that will advise crew on the best crossing for maximising performance.

Transformative change We are witnessing the comeback of the long seafaring tradition of sailing with the wind, which for centuries powered maritime trade. Now that the industry needs to abandon oil as the single source of power for ships, a wind revival is underway.

Alongside other technologies, wind can help create hybrid zero-emission ships. As necessary as the IMO’s work on future fuels is, shipowners can act with wind power now. Indeed, it is imperative that they do: 2023 was the warmest year on record for the planet, and nowhere is this more obvious than the Baltic Sea, which, as a marginal sea, has warmed more than any other. As HELCOM stated, “Transformative changes are needed in all socioeconomic sectors interacting with or affecting the Baltic Sea environment in order to protect and rebuild ecosystems and halt existing negative trends.” Wind is free, everywhere, and ready to deliver double-digit GHG emission reductions today.

OceanWings is a French industrial start-up that designs, manufactures, and delivers wingsails to support the shipping industry in reducing its carbon footprint, enabling lower emissions for all types and sizes of ships transporting goods by water. Sail to oceanwings.com to learn more.

3-4/2024 | Baltic Transport Journal | 75

How fit for purpose data can simplify vessel performance

No crystal ball needed

by Christian Rae Holm, Managing Director, Coach Solutions

Digitalisation presents both technical and philosophical challenges to the shipping industry.

How can smaller shipowners improve vessel and fleet performance effectively – and can this be done by making better predictions about the future?

A

s for the first challenge, the answer is to seek a solution that fits your way of working; much will depend on the number of vessels, their age, and the fleet size profile.

This matters because it’s very easy to look at the current state of maritime digitalisation and conclude that change is happening too slowly. The problem from the buyer’s perspective is: do software and solution providers truly understand my business?

As regards prediction, we can’t promise to tell you where the market will be next quarter, but we can give you a simple, datadriven analysis that makes forecasting vessel performance more accurate.

(Small) data empowerment We understand that many owners currently like to use the charterparty (CP) as the primary form of risk management rather than working with data, which can help them anticipate with accuracy if their ship will perform as predicted.

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The problem with that is that you won’t know until the end of the voyage whether the vessel has performed against expectations.

Being able to predict how a ship will perform in the expected conditions is a better position than hoping to avoid a performance claim by negotiating on optimistic CP terms.

But let’s not forget the technical challenge. At Coach, we don’t think you should have to equip all your fleet with sensors, nor should you need to invest heavily in a complicated voyage management system.

Unlike some software companies, we don’t promise to save you money on your vessel operations or get you better rates. What we do instead – using small amounts of data collected by the crew – is create a reliable prediction of vessel performance that can

be incorporated into your CP. We also provide tools to monitor performance against the CP terms so users can see if the ship is operating in compliance during the voyage.

The data you collect and the analysis we perform gives you better visibility of your ships’ actual performance. What you do with that is up to you, but we believe it can help owners understand the consequences of their decisions and make more wellinformed choices.

We understand that not all owners can shoulder significant investments to improve vessel performance. But does knowing how your ships will perform in practice give you a stronger position from which to make commercial decisions? You don’t need a crystal ball to know the answer to that is ‘yes.’

We at the Copenhagen-headquartered Coach Solutions create software tools for the shipping industry to optimise vessel performance and voyage planning to maximise profit and minimise CO2 emissions. In other words, we do it to simplify sustainable shipping. Go to coachsolutions.com to discover more.

"THE BEST MAP OF THE NEW SILK ROAD! * NOT A REAL QUOTE (BUT WOULD BE IF MARCO POLO WAS HERE WITH US – SCAN THE QR CODE AND CHECK FOR YOURSELF!)

Key innovations and strategies highlighted at ECG Spring Congress 2024

Transforming vehicle logistics

by Ewa Kochańska The annual spring gathering of the Association of European Vehicle Logistics (ECG), held this time around on 23-24 May in the Italian Baveno, included almost 300 of its members and partners who engaged in discussions about current challenges, most recent developments, and future direction(s) of the vehicle logistics industry in Europe. Some of the topics included CO2 emission reporting, technological advancements, operational efficiency, demand issues with battery electric vehicles (BEVs), and Chinese aspirations for vehicle market domination (and EU’s countermeasures).

T

he first day of the event featured the General Assembly, where members took care of reports on ECG’s activities and later attended a gala dinner along with the graduation ceremony for the 17th course of the acclaimed ECG Academy. The first day also saw ECG Board elections, where Wolfgang Göbel, Chief Sales Officer at Mosolf, was entrusted with a new two-year mandate as president while Mark Hindley from BCA UK was chosen as the Association’s new VP. Also, two new board members were chosen, Jørgen Lindgaard from UECC and Johannes Alexander Hödlmayr from Hödlmayr International.

The second day was dedicated to the Spring Congress, with reports and conversations about a variety of key topics concerning the vehicle sector. The presentations addressed the ongoing digital transformation in the industry’s logistics, with a focus on the standardisation of digital messages, VIN labels, and the digital vehicle handover processes.

Sustainability was also a key theme, with discussions on emissions guidelines, e-vehicle state-of-charge requirements, and reporting protocols for fire incidents involving BEVs. Other topics included dealing with supply chain constraints, compliance with new environmental regulations (such as the CO2 78 | Baltic Transport Journal | 3-4/2024

road tax in Germany), and protectionist policies, especially concerning EU-China relations.

A keynote address from Antonio Errigo, Deputy General Director, ALIS – Italian Logistics Association of Sustainable Intermodality, described ‘significant growth’ for 2023 in the Italian automotive market, noting, however, a weakening demand for BEVs. Errigo further underscored a critical need for European integration in the vehicle logistics sector and for the continental legislatures to focus on overcoming ‘bottlenecks’ and achieving ‘shared decarbonisation objectives.’

Justin Cox, Director of Global Production at LMC Automotive, focused on the current state of the overall European automotive market, highlighting the impact of inflation, China’s significant influence on global vehicle sales, slowing trade in BEVs in Europe and elsewhere, and the importance of adapting to these market changes. “The rich tend to buy into BEVs, but it’s far more difficult to make others do the same,” said Cox, pointing out that the phase-out of some national incentive programmes, e.g., in Germany, has stalled BEV growth. In the first quarter of 2024, sales of e-vehicles were down to 11% from 13% in 2023 in Europe.

Concerning the decarbonisation of global freight and logistics, Andy Golding from Smart Freight Centre outlined some

strategic directions and initiatives in this area.

Golding mainly highlighted the necessity for collaboration to reduce greenhouse gas emissions in the global logistics ecosystem and engagement through initiatives such as policy advocacy, data digitalisation, supply chain assessment, and fleet electrification guidance.

The issue of supply chain emissions was, too, illustrated by Jean-Christophe Deville, Vice President of Supply Chain at Toyota Motor Europe, who spoke about his company’s ambitions and strategies to ensure ‘on-time, in-time, every-time’ delivery across all supply chain activities with minimal CO2 footprint.

Pointing out that Toyota sold 1.17 million vehicles in Europe last year, of which threequarters were electrified, Deville highlighted his company’s strategic planning, network digitalisation, emphasis on efficiency, and continuous adoption of new technologies to get those sales to customers as smoothly likewise environmentally friendly as possible.

Toyota lowers its CO2 emissions by optimising the company’s network, which means fewer kilometres travelled, and improving loading efficiency by aiming for ‘operational excellence.’

Additionally, their ‘Green Future’ initiatives set targets, strategies, and reporting mechanisms for CO2 reduction and collaboration with logistics partners to report and reduce

EVENTS

emissions from outsourced transport. Similar to other speakers, Deville also emphasised the need for collaboration and support from logistics partners to achieve ambitious supply chain emission reduction goals.

Namrita Chow, a transportation business analyst, updated the audience about regulations in Europe concerning China, particularly in the BEV market. While countries impose tariffs and subsidies to protect local industries when trade imbalances occur, Europe’s protectionist policies buy time without resolving the problem. The stifling new policies also push China to respond in kind, creating a de facto tit-for-tat trade war.

As such, the EU’s new regulations require BEVs imported from China to be registered, with tariffs possibly being imposed retroactively.

In return, China puts out its own 10% import tariff on EU-made cars (considering also aviation

and agricultural exports from the EU). Chow predicts that as the ongoing tensions and ‘adjustments’ in international trade policies continue, the future of the vehicle market in Europe is trending towards joint ventures, contract manufacturing, and acquisitions involving Chinese and international companies.

Lastly, Ben Waller, the Associate Director of ICDP, discussed the current state and implications of the agency model in vehicle logistics and supply chains. Original equipment manufacturers (OEMs) are increasingly adopting the agency model, where dealers act as agents selling vehicles directly on behalf of OEMs. This shift aims to support omnichannel journeys, reduce distribution costs, and get closer to customers. However, the implementation of this model has faced delays, with Ford notably cancelling its rollout altogether. In Europe, aligning supply chains with the new

OEM network strategies is crucial, Waller underscored, as the agency model involves OEM ownership of stock. This shift, along with the return of vehicle supply and higher stocking costs, necessitates rethinking finished vehicle logistics strategies to centralise inventory.

OEMs must clarify roles with logistics service providers regarding car storage to maintain operational flow and manage inventory effectively. Waller emphasised that strategic planning and adaptation will be essential as OEMs transition to and refine the agency model in vehicle logistics and sales.

The event concluded with a social and networking dinner, which provided opportunities for attendees to mingle, explore the local area, and engage in less formal discussions. The next gathering of the ECG will take place in Hamburg on 24-25 October 2024.

3-4/2024 | Baltic Transport Journal | 79

TRANSPORT MISCELLANY

Shipping millionaires The summer of 2024 saw two collectors, Jacek Janowski and Adam Daszewski, publishing a postcard catalogue with the most famous class of cargo ships built and owned by Poles. Nicknamed ‘ten-thousanders’ after sporting a capacity of little over 10,000 tonnes of deadweight, their national fame stems from the vessels’ pioneering role in shipbuilding and shipping. They were the first Polish big and modern motor ships driven by Sulzer-licensed engines manufactured by H. Cegielski – Poznań. Ten-thousanders also had this elegant, ‘Italian’ silhouette that set them apart from other vessels. Two shipyards put together the entire class of 41 units: Gdańsk made 29 while Szczecin – 12. Of these, 20 were exported, mainly to the Soviet Union, with three apiece going to Chinese and Cuban owners and two each to Indonesian and Swiss ones.

As such, the catalogue spotlights 21 ships flying the Polish flag between 1956 (with Marceli Nowotko serving as the ‘firstborn’) and 1986 (Phenian). All these ten-thousanders were operated by Polish Ocean Lines (PLO), who used them to kick off overseas services, including with the Far East and Australia. Whereas the communist regime used the vessels in its ‘yes, we can!’ style of propaganda, they were truly something to be proud of. The catalogue reflects it: 21 ships were depicted in 102 editions, including ten from Germany, 29 by PLO, and 63 by commercial enterprises. The latest came in 1,360,000 copies of documented circulation, of which 1,052,000 were in colour. Given the fact that not all made-in-Poland postcard releases followed regulations requiring to inform about circulation on their reverses and that the catalogue’s authors didn’t manage to find all the reprints, we estimate that the total circulation could

80 | Baltic Transport Journal | 3-4/2024

Photos: Adam Daszewski & Jacek Jankowski's collections

very well go over 1.5 million. Take, for example, the single postcard with Florian Ceynowa: three reissues where the circulation of the initial release is unknown, while the remaining ones delivered 165,000 copies. Moreover, one of the two black & white cards with the above ship offers no data at all. It seems ten-thousanders are the world’s single millionaire in the ‘postcards depicting single class cargo ships’ category. If that’s not accurate, then surely ‘…under one ownership and national flag’ must be. The collection’s authors would greatly appreciate any feedback about postcards depicting ten-thousanders in any way, shape, or form, i.e., as part of port views, seascapes, etc., from countries not mentioned above.

TRANSPORT MISCELLANY

Love costs The Lockheed Constellation looks like a creation of art designers, not engineers (not to mention, with all due respect, accountants).

Just look at the dolphin-shaped – not some common pipe, ugh!

– fuselage and the triple fin resembling Neptun’s trident! If that doesn’t make for the world’s most beautiful airliner ever created, we don’t know what a better fit would be! Masterminded during WWII, Constellation enjoyed its heyday in the 1950s. Alas, their radial piston engines quickly got eclipsed by jets. In our corner of the globe, only Lufthansa operated the class, including the latest, most modern and bigger version called Starliner by the maker (Super Star by the German company). Lufthansa started flight operations in Europe in 1955 using Douglas DC-3 (Dakotas) but, before long, acquired eight Super Constellations. In 1958, thanks to four brand-new Constellation Starliners, the network grew with non-stop trans-Atlantic flights. Though short, the beauty episode got so engraved in memory that in 2007, a foundation supported by Lufthansa bought in the US three Starliners (rusting under the open sky, can you believe it?!) with the exceptional idea of making one of them airworthy again. In 2018, the fight against rust bill accrued $160 million… The project got scrapped. The following year, the dismantled fuselage, wings, and thousands of loose parts were shipped from the workshop in Auburn (Maine) to the Port of Bremen, from which the whole caboodle went to the Paderborn-Lippstadt Airport. In 2022, a decision was made to resume work but on a far more modest, static scale. Since the autumn of last year, the old-new Super Star is being reassembled at Lufthansa’s maintenance centre in Hamburg. In 2026, as part of Lufthansa’s centenary celebrations, it will be placed together with Ju-52 (a survivor from the 1930s) at the Frankfurt Airport in the currently under-construction visitor and

conference venue. We wouldn’t be all that surprised if the cost of this flightless (*sigh*) exhibit would amount to €200m (the price of two medium-sized spanking-new passenger aircrafts…). Comparing it to the cost of refurbishing the four-masted windjammer Peking (moored in Hamburg), not worth mentioning pocket change of €38m (or a M-size brand-new cargo ship), we can confidently state that to fly high (or at least pretend you do so on ground…) really requires more money and time. Love is in the air, they say!

Photos: NASA & Deutsche Lufthansa

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TRANSPORT MISCELLANY

A snow cruiser that got buried in snow…

What is it with Americans that they like big things? Sorry, BIG. Really, really B.I.G! In 1939, Admiral Richard Byrd designed the Antarctic Snow Cruiser (nicknamed Penguin) based on an idea by Thomas Poulter, his second-in-command during the 1934 U.S. Antarctic Service Expedition, who thought that a massive (sorry, MASSIVE!) vehicle should do the trick. Penguin was built in 11 weeks at the estimated cost of $150 thousand (some $3.39 million today). This 17 by 4.6 metre overweight ‘bird’ counted 20 tonnes and could carry four to five people and supplies for an entire year. It was also furnished with a science lab, a photography darkroom, and a small machine shop. Its deck was so spacious it could carry an airplane. The Antarctic Snow Cruiser had four wheels (don’t say!), each 3.0 metres in diameter and weighing 318 kilograms, but their unique

82 | Baltic Transport Journal | 3-4/2024

feature was that they were retractable, while each could be steered independently. Coupled with overhangs at both ends and 300 horsepower, this was meant to make Penguin unstoppable. The machinery got rolling on 24 October 1939, making its way from Pullman Company in Chicago to Boston, where it was loaded onto USCGC North Star on 15 November 1939. The vessel arrived in Antarctica in early January of the next year. And here, things swiftly began going from hype-tobad-to-ah-just-leave-it. First, a wooden ramp was built to offload the Penguin. It broke under one of the wheels… But okay, no worries, boys, we’ve got this! The Yankees managed to get the Snow Cruiser onto actual snow. In which the vehicle instantly got buried about one metre deep…

Mounting two additional tyres and putting chains did not help. Going backwards did! So,

the expedition moved, crossing 148 km in reverse gear… Imagine doing that with your car. On the brighter side of things, the Penguin proved to be an excellent, above anything else, warm base from which scientific research was carried out. That said, the Antarctic Snow Cruiser was abandoned at the Little America III base on 22 December 1940. Afterwards, it was rediscovered two times: in 1946 and 1958 (under seven metres of snow in the latter instance). Entering it must have evoked post-apocalyptic sensations: lots of personal stuff lying here and there but with no people in sight.

The Penguin either sank or is still trapped in the ever-shifting snow and ice of the Antarctic.

WHO IS WHO SILKE LEHMKÖSTER Managing Director Fleet, Hapag-Lloyd

MARKUS FRANZÉN Harbour Master, Kvarken Ports – Umeå

Silke Lehmköster began her career at HapagLloyd with an apprenticeship at sea in 2005 and was promoted to Captain in 2018. Two years later, she switched to an onshore position and initially served as Senior Director Marine HR before becoming Senior Director Fleet Management in April 2022. In her new role, Lehmköster will be responsible for fleet management, innovation & technology, and chartering, as well as lead the Newbuildings Project Group.

Franzén has a background as a Captain, having spent many years at sea before going ashore.

He is also a trained structural engineer with experience in project management in the industry, both on- and offshore. In his new role, he’ll be responsible for the Port of Umeå’s ISPS area, also acting as the Port Facility Security Officer. Additionally, Franzén will be in control of the port’s waterways and its ship traffic, as well as participate in projects related to the port’s development.

JOE KRAMEK President & CEO, WSC

KAREN DYRSKJØT BOESEN CFO, DFDS

Before stepping into the new position, Kramek served as the World Shipping Council’s Director of U.S. Government Relations. His professional journey includes 28 years as a Commissioned Officer with the U.S. Coast Guard, where he spent time at sea and as the Chief of Maritime, International, and Environmental Law. Notably, Kramek led the U.S. Delegation to the International Maritime Organization’s Legal Committee during his Coast Guard tenure.

Karen comes to the Danish shipping & logistics company from the Group CFO position at Sonnedix, an international renewable solar and wind energy producer. As such, apart from finances, Dyrskjøt Boesen will help DFDS in its green journey. Earlier, she worked for, among others, Total (as Country Manager Total Myanmar and CFO Total E&P UK & Vice President, Finance, Total Group), Maersk Oil (CFO UK), and with DONG Energy (Vice President, E&P Commercial and M&A).

DENNIS TETZLAFF COO Fleet, Stena Line

MIKAEL KOCH JENSEN CFO, Scandlines

Tetzlaff, a Dipl.Ing. (FH) in Nautical Science and Maritime Transport from the University of Applied Sciences Emden/Leer, joined the Swedish ferry line from TUI Cruises, where he began as Senior Head of Nautical Operations to advance through the post of Director Nautical Fleet to Vice President Fleet Operations & Newbuild. He began his career at sea as Deck Cadet, then became Third Officer, and with AIDA Cruises Tetzlaff eventually was promoted to Staff Captain.

Koch Jensen has more than 25 years of experience in financial management and comes with broad knowledge from several Danish and international retail companies. Among others, he worked for PwC, Toms Gruppen, Colgate Palmolive, Coop Denmark, and most recently, the Danish Bake Group. At Scandlines, Koch Jensen will take over responsibility for the company’s overall functions within finance, treasury, IT, and procurement.

KJARTAN ROSS CEO, the Port of Thyboron

LIENE LEMANE Trade Director Baltic Sea North, Stena Line

The Danish seaport has gained a new helmsman in the person of Kjartan Ross, who describes himself as a creator, making things happen through meaningful leadership. He originally qualified as a ship’s officer from the Svendborg International Maritime Academy (SIMAC) on Funen. Throughout his land-based career, Ross had held various positions in the business community in North Jutland, most recently as Chief Commercial Officer at the Port of Aalborg.

Lemane joined the Swedish ferry company in 2014 after spending four years at the Latvian Ministry of Economics. Seven years later, she moved to the ferry company’s HQ in Gothenburg to work as Head of Group Business Control. When Stena Line took over its terminal of call in the Port of Ventspils, Lemane moved back to Latvia as its Managing Director (a post she’ll retain). In her new role, Lemane will oversee the development of the LiepājaTravemünde and Ventspils-Norvik crossings.

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WHO IS WHO BIRGIT W. NØRGAARD Chair of Scandlines’ Supervisory Board

JÜRGEN ALBERSMANN Board Director, UIRR

Nørgaard has extensive experience as a nonexecutive director in companies within logistics, engineering, contracting, infrastructure, manufacturing, and energy. She is currently the NED of, among others, Associated British Ports, NCC International, WSP Global Inc., and Associated Danish Ports. In addition, she has been CEO of the consulting engineering company Carl Bro and COO of Grontmij (now both part of the Sweco Group).

The CEO of Contargo has been elected to the Board of Directors of the International Union for Road-Rail Combined Transport. Before joining Contargo in August 2013, Albersmann worked for duisport, DB Cargo, DB Schenker Rail Germany, and Hellmann Process Management.

He graduated from the University of Münster as an Economist in Transport Economics and Finance and holds an EMBA in Logistics, Materials and Supply Chain Management from the University of St. Gallen.

CARL-HENRIK HÄGG CEO, the Ports of Halland

ANDERS ERIKSSON Project Leader, the Port of Uddevalla

The Swedish company that operates the seaports in Halmstad and Varberg saw the promotion of its up-to-date Deputy CEO. Hägg joined the Port of Halmstad in 2011 as Operational Director. Upon the port merger, he started working as the Ports of Halland’s COO. Earlier, Hägg was with the Port of Helsingborg as Assistant Stevedoring Manager. He also sailed with the Swedish Armed Forces’ Navy as Captain.

After working on the port expansion project in another Swedish seaport (Varberg), Eriksson will take on the newly created post in Uddevalla’s Technical Department. He will first and foremost focus on developing Västra Hamnen (the West Harbour), including a new masterplan, as well as extending the lifespan of existing quays.

ERIK ESKLING HANSEN Business Developer, the Port of Ystad

ERIC GRÉGOIRE CEO, Scandlines

Hansen comes to the Swedish seaport from the same post at Hector Rail, where he recently developed a new business of system trains in Sweden and throughout Scandinavia. Earlier, Hansen worked for, among others, CMA CGM as Sales Executive, Samskip as Branch Manager, Maersk Sweden in sales, Thor Jörgensen and Transgroup Worldwide Logistics as Sales/ Operation Manager. Hansen is an alumnus of the Copenhagen Business School in Shipping and Maritime Law.

The Copenhagen-based ferry line has welcomed Eric Grégoire as its new Chief Exec.

Grégoire comes from the position of CEO of Goodpack in Singapore, before which he worked for, among others, DuPont, General Electric International, SABIC, UTC Fire & Security, Birla Carbon, and the Coveris Group.

Grégoire holds an M.Sc. in Applied Physics from CentraleSupélec as well as finished the Organizational and Management Leadership programmes at The Leadership Trust.

KEVING KING CEO, TT Club

ANDERS SJÖBLOM Operational Efficiency Manager, Surikat

Originally based in the U.S., King has long held positions within Thomas Miller-managed businesses, transferring to London in 2015 to lead the EMEA region at TT Club. More recently, he served as the insurer’s COO, acting also as Deputy CEO over the last year. King holds a bachelor’s degree in history from the University of Texas at Austin and a J.D. from the University of Houston Law Center, plus completed the INSEAD Management Skills for International Business course.

The Swedish tech company has employed the transport & logistics industry’s veteran, a naval officer and a Master Mariner from Linnaeus University who’s also engaged in independent consultancy. Sjöblom has most recently been employed by Stena Line, where he first worked as Operation Manager and then Manager Port Excellence. In his rich career, he was also Acting CEO for Mälarhamnar and Marketing & Development Manager at Smålandshamnar.

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