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2018 • A supplement to Tanker Shipping & Trade

INDUSTRY LEADERS

Spotlight on the

50

most influential people in tanker shipping & trade today


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COMMENT | 1

Welcome to the 2018 Tanker Shipping & Trade Industry Leaders A hallmark of leadership is the ability to evolve. This year we have evolved our approach to this publication with a new format. We have dispensed with ranking leaders from 1–50. Instead we have created 10 categories and profiled five leaders from each category. But the evolution does not end there. We will be inviting one leader from each category to attend a special roundtable session held in November adjacent to our established Tanker Shipping & Trade Conference, Awards and Exhibition in London.

Here we will discuss industry leadership and the many challenges, issues and opportunities it presents. This promises to be a fascinating and insightful discussion and we will bring you more news on the time, date, venue and participants shortly. For all this change, some things remain constant. Ahead of you are 50 of the industry’s most engaging and successful leaders. Each, through their example and their comments have vital insights to share on what it takes to make it as a leader in our sector.

Reflecting on the leader profiles in Tanker Shipping & Trade Industry Leaders there is clearly a consensus that the sector is finally emerging from the 2008 trough. Perhaps Citi Banks’s Michael Parker put it best when he said 'The positive trend in the industry will impact all sectors eventually. The light at the end of the tunnel is getting larger and brighter.' It would be wrong to characterise this optimism as unbridled. As Mr Parker himself puts it “What is important is holding back on contracting newbuildings, increasing the rate of scrapping, and allowing the fleet to reach toward an equilibrium.” Alongside assessments of supply/demand balance, what also stands out from our

conversations with the industry’s leaders is excitement around the new developments taking place. Blockchain sounds like an alternative word for the bitter end of an anchor chain, but it is a process that looks set to revolutionise the sale of crude oil, shortening the documentation reporting period from weeks to days. Progressive trading house Mercuria, whose chief executive officer Marco Dunand is featured in this publication, has initiated a prototype blockchain sale of a crude oil cargo. Given the huge volume of crude oil and oil product cargoes moved by the global trading houses, readers can expect to read a lot more about blockchain in 2018 in this title and Tanker Shipping & Trade.

Edwin Lampert, head of content

Craig Jallal, tankers and markets editor

Brand Manager – Sales: Paul Dowling t: +44 20 8370 7014 e: paul.dowling@rivieramm.com Supplement to Tanker Shipping & Trade Published March 2018

Sales Manager: Chris Tims t: +44 20 8370 7015 e: chris.tims@rivieramm.com

Head of content: Edwin Lampert t: +44 20 8370 7017 e: edwin.lampert@rivieramm.com

Head of Sales – Asia: Kym Tan t: +65 6809 3098 e: kym.tan@rivieramm.com

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Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK www.rivieramm.com ISSN 2055-3579 ©2018 Riviera Maritime Media Ltd

Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner.

Tanker Shipping & Trade Industry Leaders 2018


2 | INDUSTRY LEADERS OIL OWNERS

OIL OWNERS Patrick (Paddy) Rodgers chief executive officer, Euronav

Paddy Rodgers (Euronav): quantum leaps underpinned by sound industry judgement

One of the industry’s most urbane and articulate leaders, Paddy Rodgers draws capacity crowds and media interest whenever and wherever he has a speaking engagement – and with good reason. His arguments are cogent, and he has a track record of achievement to back them up. It has been a very busy 12 months for Mr Rodgers, not least on account of the planned merger with Gener8 that will create the world's largest independent crude tanker operator with 75 vessels, including 44 VLCCs. Analysts KBC Securities said this move represents a “quantum leap forward and further consolidates the market and Euronav’s own position as undisputed market leader in the global tanker market.” But this has not upended Mr Rodgers’ schedule or commitment to our industry in the fullest sense. At Riviera’s November Tanker Shipping & Trade Conference he referred to the market as being like a drunk: by the time he’s had his tenth pint, his head gets ahead of his feet, then all of a sudden he’s running and he crashes.” Mr Rodgers said that the best-case scenario for the short-term – from his vantage point – was for the market to become bifurcated. “Negative cash flows drive scrapping,” and if a scenario arose whereby operators with older tonnage saw negative cash flows,

Tanker Shipping & Trade Industry Leaders 2018

he said there are shipowners with newer fleets who would be perfectly happy with that. The likelihood of that scenario occurring is very slim, though, and Mr Rodgers was clear that investing in older tonnage was not a wise move in current or foreseeable market conditions. “The reality is there is going to be pain before we get gain,” he asserted. Mr Rodgers said there were structural problems within the tanker market that needed to be fixed. How to do that, he said, was via a multi-tiered but straightforward process. “You need to get big so that you can raise money efficiently, and so that you have capital to invest. The age of explosive growth is over. I don’t see another massive growth phase like the one we’ve had in the last 40 years. That means you’re going to have to work harder for your money.” He took a typically uncompromising view on the pending 2020 sulphur cap legislation. The market needs to get on with preparing for the new regulatory order rather than debate whether the legislation was going to happen. In urging action over prevarication, Mr Rodgers was also neatly summarising the leadership style that has carried him in his career and wider industry contribution, and rightly saw him recognised as a Tanker Shipping & Trade Industry Leader of the year.

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OIL OWNERS INDUSTRY LEADERS | 3

Sergey Frank Sergey Frank (Sovcomflot): Opening new markets, safely and profitably

A fixture of our Tanker Shipping & Trade Industry Leaders publications, Sovcomflot’s Sergey Frank continues to preside over one of the industry’s most significant and successful tanker companies. Alongside the expansion and commercial success has been an equal commitment to pioneering new approaches, technologies and trade routes. Added to these is an absolute commitment to raising the industry’s safety levels, especially in the more remote areas sailed by the vessels and crews in his care. Last year Mr Frank met with Russian Prime Minister Dmitry Medvedev and asked for state backing for enhanced navigational safety measures along the Northern Sea Route (NSR). There has been a significant increase in shipping traffic along the NSR, and Sovcomflot believes the navigational and hydrographic support system need to be upgraded, the readiness of rescue services boosted, and the reliability of navigational and communications aids improved. In 2018, energy projects in the Gulf of Ob (Novy Port and Yamal LNG) are expected to generate around 11.5M tonnes of freight alone, almost doubling the Soviet-era NSR peak record of 6.6M

President and chief executive officer, Sovcomflot

tonnes in 1987. SCF shuttle tankers commenced year-round oil shipments from Novy Port as recently as September 2016, and Yamal LNG is expected to come on stream in late 2017. As of the end of Q2 2017, over 200M tonnes of crude oil and more than 16M tonnes of liquefied natural gas have been transported by SCF vessels for energy projects operating in the Arctic seas (Varandey, Prirazlomnoye, and Novy Port) and in the Russian Far East (Sakhalin-1 and Sakhalin-2). During the first half of 2017 alone, Sovcomflot vessels safely transported 17M tonnes of crude oil from the Russian Arctic and the Russian Far East. Half of the company’s 149 vessels are of high ice-class. This year, the company placed an order for a series of Aframaxes purpose-designed to be run on LNG. These new-generation tankers are scheduled for delivery beginning in 2018. Each 114,000 dwt tanker will have an ice class sufficient to ensure a safe yearround transportation of crude oil from regions with challenging ice conditions, including subarctic seas. Opening new markets safely and profitably, in that order, is a hallmark of true leadership.

Nikolas Tsakos

President, chief executive officer and executive director, Tsakos Energy Navigation The recipient of the 2017 Tanker Shipping & Trade Industry Leader Award was president, chief executive officer and executive director of Tsakos Energy Navigation (TEN), Nikolas Tsakos. The award, which he collected in person, was recognition for the powerful leadership shown as head of TEN and chairman of Intertanko. It also acknowledged his tremendous (and continued) philanthropic contribution. “Our success at TEN is

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simple. We have a long-term business with major end users. We have always maintained a solid balance sheet and low debt,” he explained. With the delivery of the iceclass Aframax tanker Bergen TS, the last in a 15-vessel order, TEN completed a programme of 30% fleet growth in just 18 months. With 65 vessels fully operational, the fleet’s minimum revenue backlog comes to US$1.3Bn with an average contract duration of 2.5 years.

Such a busy programme – the largest newbuilding growth spurt in the company’s history – did not see any loss of focus in terms of wider industry contribution. Now in his second term as chairman of Intertanko, Mr Tsakos continues to pursue an ambitious agenda. He has been especially outspoken on maintaining the industry’s supply and demand balance. “Much like smoking, over-ordering gives you a quick fix, but it kills you in the end.”

Tsakos Energy Navigation’s Nikolas Tsakos is rightfully recognised as an industry leader

Tanker Shipping & Trade Industry Leaders 2018


4 | INDUSTRY LEADERS OIL OWNERS

Captain Rajalingam Subramaniam President and chief executive officer, AET

Captain David Stockley Chief operating officer, Oman Shipping Company

Captain David Stockley: Strident views on ship staff and training

Oman Shipping Company’s Captain David Stockley is a worthy addition to our roster. On his rise up the corporate ladder he has lost none of the

Tanker Shipping & Trade Industry Leaders 2018

The affable Captain Rajalingam Subramaniam (Captain Raja), AET president and CEO, is driving the company’s five-year strategic plan. The focus, he said, is asset rejuvenation, and strengthening sustainability in all the asset classes. “We have a policy that we will not keep assets more than 20 years old. So once they reach 20 years old we will dispose of them for scrapping. We will continue to do that, even with those assets that are maintained in very good condition and are capable of going on for another five years,” he explained. Last year the company did its first onward acquisition of two new VLCCs, and invested in eight newbuilds, two DP shuttle tankers and, perhaps most headline grabbing of all, the company’s first LNG dualfuel Aframaxes. Captain Raja admits that the latter order was an especially big step.

“As a responsible industry leader we have to take that first step – to give the LNG-fuelled option profile and also to incubate the infrastructure required for the LNG bunkering.” This speaks of the asset rejuvenation aspect as well as sustainability. But the forwardlooking focus also extends into a major focus on digitilisation. Captain Raja is coy on the details, but confirms the company is making a significant investment. A recurring trait found among many of our leaders is a commitment to wider industry involvement. In Captain Raja’s case this manifests itself by way of involvement with a number of industry organisations including Intertanko, where he serves as chairman of the Gas Tanker Committee, which aims to provide best practices and acceptable standards for the industry.

straight talking and love for the sea that mark out a true captain of our industry. Captain Stockley has variously spoken out against training institutions (for turning out officers who are “not fit-for-purpose” and “ship staff that are unable to operate and maintain their vessels”) and “educationalists” (for promoting “diplomas and degrees that seem to have made the Master’s Certificate redundant and outdated”). “The fact is, maritime institutes are more interested in quantity than quality,” he told us. “This stems from the need of the establishment to upgrade their academic status to receive funds from various government organisations. “Can our newly trained crews with limited experience

cope when technology fails?” Captain Stockley wonders. Equipment failure often means a vessel stops until shore technicians are available. “All the major engine makers and suppliers push maintenance contracts worth many hundreds of thousands of dollars because ships’ staff are unable to operate and maintain their vessels,” he says. More recently, Captain Stockley took the industry’s vetting procedures to task at Riviera’s 2017 London Tanker Shipping & Trade Conference. Whether you agree or disagree with him, what cannot be denied is Captain Stockley’s passionate and profound commitment to our industry, and his willingness to speak out on the topics that matter. That’s real leadership.

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6 | INDUSTRY LEADERS PRODUCT OWNERS

PRODUCT OWNERS Kim Ullman

Chief executive officer, Concordia Maritime Kim Ullman, the ever-engaging chief executive officer of Concordia Maritime, is an easy choice for our list of leaders. Timing vessel purchases and sales is a key ingredient in success, and Mr Ullman has honed it to a fine art throughout his career. “Next year [2018] will be a turning point for products,” he told Tanker Shipping & Trade last year, adding “we may even see the market turn year end, depending on the winter.” He also predicted at November’s Tanker Shipping & Trade Conference that the year ahead would see OPEC reopen the taps

Tanker Shipping & Trade Industry Leaders 2018

and raise the agreed limit on oil production. Mr Ullman felt March 2018 would be when the group “reverses course,” with OPEC to “open the taps by June.” While confident in his market predictions, he is less clear on whether installing scrubbers or operating vessels in distillates is the best way to comply with the 0.5% low sulphur cap that enters into force in 2020. Mr Ullman is perplexed by oil companies’ preferences for new tonnage when awarding long-term charters, given the low average age of the global product tanker fleet.

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PRODUCT OWNERS INDUSTRY LEADERS | 7

Jacob Meldgaard Chief executive officer, Torm If ever there was a case history on how to restructure a tanker company during a crisis, the story of the Danish product tanker company Torm A/S would be in the top three. Jacob Meldgaard remodelled Torm back from extinction, and it is tempting to look to his past for clues on where he got this talent. His background, though, is typically Danish. Like so many Danes in shipping, Mr Meldgaard is a Maersk alumnus, having worked for Maersk Broker in Japan before joining another Danish shipping company, J Lauritzen, in 1995. He left as chartering manager to become executive vice president at Norden in 1997, working with the then chief executive officer Carsten Mortensen for a decade. In 2008, with the shipping crisis looming, Mr Meldgaard joined Torm as chief executive officer. With the financial help of Oaktree, he has steered the company back to relative health. There are signs that the shipping cycle, in product tankers at least, has touched bottom, and the recovery heralds a new era for Torm. This may include an IPO in New York, and it would be a fitting peak of his career for Mr Meldgaard to ring the opening bell of trading in Torm stock.

Mikael Skov Chief executive officer, Hafnia Tankers Mikael Skov has more than 32 years of experience in the shipping industry. His career commenced with Danish shipping company Torm. After 25 years at Torm (including two years as chief executive officer), he left to co-found Hafnia Tankers in 2010. Hafnia Tankers is currently on a growth spurt. In 2017, it took delivery of several newbuilds, lifting the fleet to 37 owned vessels and five chartered-in ones. Hafnia also has a 50% share in two LR1 newbuilds due for delivery in Q1 2019. The management of the fleet is organised into three commercial pools: LR, MR and SR. Overall, there are more than 100 vessels under management. As the company has grown, so too has the stature of Mr Skov. He is now a key part of the Danish maritime hub, sitting as an industry representative on the Danish Maritime Strategy Team, set up by the Danish Government. He is also on the Members Committee of the International P&I Club, Skuld.

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Tanker Shipping & Trade Industry Leaders 2018


8 | INDUSTRY LEADERS PRODUCT OWNERS

Nicolas Busch

Chief executive officer, Navig8 Group Nicolas Busch is the chief executive officer of Navig8, which is a fully integrated shipowner and operator, and provider of commercial management for its own controlled vessels and partners’ vessels, either directly or in pools. This would suggest that economy of scale is the driving force behind Navig8, but in 2017 two significant takeovers took place. First, in early 2017, Navig8 Product Carriers was sold to Scorpio Tankers. Later in the year, Gener8 Maritime (a 2014 merger between General Maritime and Navig8) was sold to Euronav. Both Scorpio

and Euronav have their own pool operations, so up to 27 ships under Navig8 Product Carriers and 31 tankers under Gener8 might leave Navig8 pools. In exchange, Navig8 has generated liquid assets and cash for its investors. As Mr Busch emphasised at a recent shipping conference, investors’ requirements are changing. He noted that investors need to see that they had an exit strategy, and that a highly liquid stock provides that exit. He also said that investors want exposure to earnings, not the assets.

Robert Bugbee

President and director, Scorpio Tankers Industry consolidation in the product tanker segment continued apace in the last 12 months and Scorpio Tankers, led by the irrepressible Robert Bugbee, was at the forefront of the wave. Mr Bugbee has long championed operations of scale, and there will have been a sense of vindication with Scorpio Tankers’ acquisition of the Navig8 product tanker fleet (27 eco-designed vessels). The move made Scorpio Tankers the third-largest tanker owning group in the world. The fact that Scorpio Tankers merged with a company helmed by traders is no surprise given Mr Bugbee’s

Tanker Shipping & Trade Industry Leaders 2018

comments in a 2013 Tanker Shipping & Trade interview. In it he talked about a broader shift in trade patterns that saw Scorpio Tankers undertake more and more voyages it had never seen before. “We are neophytes in our knowledge on the demand side. Look at what Valero, Vitoil and Shell are doing. These are people with much greater knowledge about the future trade flows than us, and they are going very long in product tankers right now.” Mr Bugbee’s earlier career achievements give clues as to his appetite for the big deal. Outside of his time with Scorpio, he is perhaps most widely known for the 12 years he spent at OMI Corp. As OMI’s chief operating officer, he played an integral role in the growth and sale of the company, which famously included the sale of the fleet to Teekay and Torm for a combined US$2.2 Bn.

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10 | INDUSTRY LEADERS CHEMICAL OWNERS

CHEMICAL OWNERS Kristian Mørch Chief executive officer, Odfjell

Kristian Mørch has a long pedigree in Scandinavian shipping circles, having spent nearly 30 years working for the likes of the Clipper Group and Maersk, among others. The change in focus from the bulk sector to chemical tanker royalty in the form of Odfjell was a new challenge for Mr Mørch. A lot of water has passed under the bridge since he joined Odfjell in August 2015. Unfortunately, the chemical sector is facing a weak outlook in 2018. “Our markets have remained challenging in Q4, but Odfjell continues to make good progress. We have recently achieved our growth ambitions by renewing our fleet and participating in the consolidation in a capital efficient way, and we have at the same time strengthened our balance sheet through disposal of non-core assets,” Mr Mørch noted. But he also pointed out that the influx of US shale gas is reducing the cost of feedstock for chemical producers. This in turn is increasing demand for chemical tankers, and lifting tonne-mile demand. In February 2018, it was announced that Mr Mørch had been elected to the board of J Lauritzen.

Hans Feringa

Chief executive officer, Team Tankers Hans Feringa was appointed chief executive officer of Team Tankers International in September 2015, and brought with him an extensive background in the chemical shipping industry. In 1996, he joined Stolthaven Terminals and held various positions of increasing responsibility within the Stolt-Nielsen organisation before his appointment in 2007 as president of Stolt Tankers, where he managed strategic and growth initiatives. With such a background, he has focused Team Tankers’ growth strategy on three distinct segments: regional stainless-steel ships (12 tankers), regional coated ships (18 tankers), and the IMO II deepsea trades (nine tankers). If there is merger and acquisitions activity in these segments in 2018, expect Team Tankers to be at the forefront.

Tanker Shipping & Trade Industry Leaders 2018 www.tankershipping.com


CHEMICAL OWNERS INDUSTRY LEADERS | 11

Catherine Hall Commercial and strategy general manager, Shell Shipping and Maritime Catherine Hall is the commercial and strategy general manager at Shell Shipping and Maritime. It is her job to focus on improving the competitiveness of Shell’s current value chains and the company’s ability to access new markets through the provision of safe, competitively priced, efficient maritime solutions. Ms Hall is responsible for the fleet of LNG carriers Shell has on time charter, around 60 vessels, the development of a global network of LNG bunker vessels, and the provision of FSRUs. On the strategic front, Ms Hall looks to the trends that will shape the future of Shell’s shipping and maritime activities: the reduction of Shell’s CO2 footprint, the impact of digitalisation on efficiency, and energy-efficient technologies that will shape the vessels of the future. She describes the process as “powering progress together, by providing more and cleaner energy solutions” across the company. Prior to joining Shell, Ms Hall worked at BP for 15 years, predominantly in the shipping business, for oil, gas and chemicals. She moved to Singapore with BP in 2008, to be the regional chartering manager for Asia Pacific and the Middle East, with commercial responsibility for BP’s fleet of oil tankers in the region and all chartering activity. Alongside the world of ships, Ms Hall has developed a strong interest in employee communications and engagement, and has strived to improve these across the businesses she has worked in. Most recently, she was part of the team that created ‘i-Mindset,’ a culture-change movement in Shell, which Ms Hall passionately feels will make a difference to the way it does business. Ms Hall studied history at Oxford University, where she was also the captain of the boats in rowing.

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Tanker Shipping & Trade Industry Leaders 2018


12 | INDUSTRY LEADERS CHEMICAL OWNERS

Jan Hammer

Niels Stolt-Nielsen

Managing director,

Chief executive officer,

John T Essberger

Stolt-Nielsen

Jan Hammer, the managing director of Hamburg-based chemical tanker operator John T Essberger, tends to keep a low profile. But in early 2018 the company made headlines with the takeover of fellow chemical tanker operator Crystal Nordic. The latter company was sold by parent company Embarcodera, a joint venture between Borealis Maritime and the private equity fund KKR. The deal’s financial details have not been forthcoming, but it is believed that the 14 Crystal Nordic chemical tankers, ranging between 4,000 and 12,000 dwt, will join the 23 tankers in the Essberger fleet. The deal is fitting, as John T Essberger is the outcome of a series of mergers. Essberger was founded in 1924 by John T Essberger, a naval commander. Following a period of co-operation, Essberger acquired the VOPAK chemical tanker operation. Today, the group consists of several different operations, including the liner services operated by Deutsche Afrika-Linien (DAL). DAL runs services from Europe to and from southern Africa and the Indian Ocean. Other components include tramp shipping, the aforementioned chemical tankers, and shipmanagement activities, which are pooled in John T Essberger. The group has an annual turnover in the region of US$350M.

Niels Greger Stolt-Nielsen runs the chemical tanker company founded by his father in 1959. He joined the company in 1990 and has served in several capacities in the family businesses. He has been a director of Stolt-Nielsen Ltd since 1996 and chief executive officer since November 2000. Mr Stolt-Nielsen served as interim chief executive officer of Stolt Offshore SA from September 2002 until March 2003 and he was the president of Stolt Sea Farm from 1996 until 2000. In 1994, he opened and organised Stolt-Nielsen’s representative office in Shanghai. Mr Stolt-Nielsen is also the chairman of the board of Avance Gas Holding Ltd and a director of Golar LNG Ltd. He graduated from Hofstra University in 1990 with a degree in business and finance. Speaking at the presentation of the company’s Q4 2017 financial results, Mr Stolt-Nielsen said “Our outlook for the first half of 2018 remains essentially unchanged. We do not anticipate any substantial improvement in the chemical tanker market until 2019, when the orderbook reduces and the supply/demand balance improves.”

Tanker Shipping & Trade Industry Leaders 2018

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14 | INDUSTRY LEADERS SHIP MANAGEMENT

SHIP MANAGEMENT Bob Bishop Chairman, Selandia Ship Management Bob Bishop combines his role as executive director of V.Ships with the chairmanship of Selandia Ship Management. He is using his extensive industry experience to develop the company’s tanker business in India and south east Asia. Captain Bishop will always be closely associated with the Indian seafarer scene, having spoken out on behalf of the captain and chief officer of Hebei Spirit. In December 2007, the single-hull VLCC Hebei Spirit was struck by a floating crane barge while at anchor. Around

11,000 tonnes of crude oil were released into the sea, polluting several provinces along the Korean west coast. The vessel’s two most senior officers were found guilty of criminal negligence and sentenced to serve time in prison. Captain Bishop played a leading role in keeping the plight of the officers in the limelight, and they were eventually released. This campaigning spirit will be familiar to members of Intertanko, an organisation that Captain Bishop has worked for and remains actively involved in.

Olav Nortun Chief executive officer, Thome Group

Under chief executive officer Olav Nortun, Thome is making pioneering moves. Last year our sister title Singapore Solutions reported how Thome had offered the tanker industry a glimpse of the future in Singapore with the opening of its new in-house round-the-clock-manned fleetoperations monitoring room. The fleet-operations control room features monitoring of individual vessels, via onboard CCTV, regardless of where they are in the world, with screen grabs uploaded to the control room every five minutes. The room also provides various systems to track all 221 managed ships around the globe in the areas of weather monitoring, security-zone assessments and warnings, integrated vessel-management system implementation and live video conferencing with crew on board. The tracked information of each vessel can be updated to the control room every 30 minutes or few hours, depending on the location of the vessel or if it needs to be under closer monitoring. In addition, a room adjoining the control room can be used to set up a team to handle a crisis. Mr Nortun told Singapore Solutions that Thome is committed to “taking advantage of digitalisation.” He added that the incorporation of the right technologies can bring about greater efficiency not just for the company but for the industry at large, too.

Tanker Shipping & Trade Industry Leaders 2018

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SHIP MANAGEMENT INDUSTRY LEADERS | 15

Bob Maxwell

Managing director of BSM’s Ship Management Centre (Singapore)

"One of the reasons for this is the industry’s regulatory system, which is not consistent”

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One of the most engaging and knowledgeable technical experts in the tanker field, Bob Maxwell is an astute reader of future technical trends. Or, in other words, where he trends others follow. “Increased automation is certainly coming our way. If it means totally unmanned ships or a step in that direction, we would be foolish to pretend that it will not happen,” he asserts. Captain Maxwell believes the trend toward smarter ships is driven by the need for greater energy efficiency and the rising tide of shipping

regulation, as well as commercial pressures. But he cautions that shipping is a long way off from big data, where terabytes per minute are used to monitor and predict trends. “The number of sensors and measuring devices required to accurately monitor machine and vessel performance is underestimated and there is also a misperception that this information will be reviewed by humans ashore instead of on board. Proper digitisation means that computers will do the analysis and produce alerts and reports based on trends, but it does not remove the crew from the process,” he explained. Captain Maxwell believes that problems such as high cylinder temperatures or low oil pressure, for example, will have to be managed on board until the industry acquires the right predictive technology and has the confidence to rely on it. “Too often we have seen examples of bearings flagged for change by vibrationanalysis surveys only for engineers to test them manually and declare they are still OK,” he observes. If they are reused, it usually ends in machine failure. It is also his belief that, ultimately, the working lives of seafarers will be made easier by the reduced administrative burden stemming from the use of digital ship certificates rather than paper-based ones. Checks for compliance with regulatory requirements will be conducted more efficiently, too. “While modern IT has streamlined some aspects of shipboard administration, we are still some way from a true one-point-of-entry system. One of the reasons for this is the industry’s regulatory system, which is not consistent,” Captain Maxwell said. Although the industry is transforming, he believes its conservative nature means change could be slower than many envisage. “We need to ensure that we give our employees the right tools for the job in the 21st century and that we set realistic expectations, rather than sticking to the old ‘this is how we used to do it’ mantra,” he said.

Tanker Shipping & Trade Industry Leaders 2018


16 | INDUSTRY LEADERS SHIP MANAGEMENT

Bjorn Hojgaard (Anglo-Eastern Univan): Passionate commitment to safety, technology and leadership

Kishore Rajvanshy

Managing director, Fleet Management Ltd

Kishore Rajvanshy (FML): “Our system is head and shoulders above the rest.”

Tanker Shipping & Trade Industry Leaders 2018

Tanker Shipping & Trade Lifetime Achievement award winner Kishore Rajvanshy believes his company’s success has been built on organic growth, a refusal to use middlemen and being many years ahead of the curve on digitalisation. “Our philosophy right from day one has been to develop business organically, based on customer satisfaction,” he said. “Initially we got ships from my previous contacts in Norway and the Netherlands, and we developed these areas very well. Two years after the company was set up we started to explore the Japanese market. It was not easy, but we persevered. We visited Japan many, many times. Other companies like to have an agent in Japan. We chose to do it ourselves. None of us could speak any Japanese. Yet we thought it was always better for us to go and have direct contact with the owners, rather than going through a broker,” Mr Rajvanshy explained. That approach brought good results “It was initially very difficult to get the clients, but once we got our first one or two clients the rest was easy. We have the same Japanese clients 21 or 22 years down the line. And the same applies for the Norwegian and Dutch principals: we still manage ships for those who initially supported us.” The biggest challenge has been managing fast growth. Between January and November 2017 FML had a net increase of 50 ships. A related challenge is to mobilise the manpower both on the ships and on shore. At every stage of shipmanagement, your backbone is the crew, he explained. “That is what you have to strengthen. You have to have training centres and a constant inflow of new blood, in the office as well as on the ships.” Competitiveness also stems from early adoption of technology. Fleet Management realised the importance of IT and computerisation way back in 2002, when it launched the first version of its computerbased reporting system, PARIS (planning and reporting for the infrastructure of ships). Mr Rajvanshy explained “Everything is there on it, and this is a system that is all developed inhouse. We have not bought any off-theshelf elements. We are very proud of it. Many owners who have got ships for different managers have always told us that our system is head and shoulders above the rest.”

Bjorn Hojgaard Chief executive officer, AngloEastern Univan Bjorn Hojgaard makes our list again. We have charted the rise of this amiable Dane since his days at Thome. Captain Hojgaard has helped spearhead Anglo-Eastern Univan’s expansion into China by establishing a new joint venture known as Anglo-Eastern Sinoship Ship Management Shanghai. Anglo-Eastern Univan will offer direct contact with their Chinese seafarers’ pool, cutting out the necessity of an agent. Special economic zone rules make such ventures possible. Partner Sinoship has indicated an ambition to provide full management for Anglo-Eastern Univan customers, which the latter does not rule out as a future possibility. Operations started in March 2017 with the provision of crewing management for 15 ships. Steady growth is expected to result in 20-25 ships. To date, clients hail from the United States and Europe, and have not included tanker owners/operators. A sought-after speaker on the conference circuit, Capt Hojgaard is known for his forthright views on safety, crew welfare and new technologies. The idea of setting an example from the front is integral to his philosophy, and it is perhaps no surprise that the AngloEastern Univan corporate brochure is titled Leadership.

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TANKER LEADERS' ROUNTABLE

Tanker Shipping & Trade Industry Leaders Roundtable This year will see the inaugural Tanker Shipping & Trade Industry Leaders Roundtable. We will be inviting one leader from each of the 10 categories that feature in this supplement to take part in a roundtable discussion on industry leadership.

alyst

Broker / An

The roundtable will take place during Riviera’s ‘super tanker’ week in November in London. The week plays hosts to Riviera’s Tanker Shipping & Trade conference, Awards and Exhibition (20 – 21 November) and LNG Ship/Shore Interface Conference (22 – 23 November). For more information on the roundtable or either conference please email paul.dowling@rivieramm.com

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Ship management

Maritime Services: Finance, legal, insurance


Classification society / Flag state

Vessel owner (product)

Pioneer

Vess (che el owner mica l / oi l)

Charterer

Industry association / Industry regulator


20 | INDUSTRY LEADERS BROKER/ANALYST

BROKER / ANALYST

Stephen Gordon

Managing director, Clarkson Research Services

Tanker Shipping & Trade Industry Leaders 2018

It is not often that someone declines to take part in a process to recognise his or her services to industry, but such modesty is typical of Stephen Gordon, the managing director of Clarkson Research Services. He joined the company in 1999, at a time when it was rapidly expanding to become the largest shipbroker in the world. The main driving force for that expansion was Dr Martin Stopford, the author of the seminal text on shipping research, Maritime Economics. Mr Gordon worked closely

with Dr Stopford as part of the consultancy division within Clarkson Research Services. The role of this division was to handle the irregular workload outside the remit of the Shipping Intelligence Weekly, the monthly publications and the worldfamous Shipping Intelligence Network. In 2006, Mr Gordon was given the responsibility of integrating the newly acquired oil field data specialist, Oilfield Publication Ltd, into Clarksons Research Services. During the boom years pre-2008, Clarkson Research Services was the go-to organisation for the industry section of dozens of IPO prospectuses, and Mr Gordon managed over 150 IPO, bond and consultancy projects. Many of today’s public tanker companies can trace their origins back to some of the work he managed. Since then, Clarkson Platou, as the parent shipbroking company has been known since the merger in 2014, has built a team of tanker analysts working directly with the brokers, who rely on the research data supplied by Mr Gordon’s team in Clarkson Research Services. Mr Gordon is also responsible for Clarkson Valuations, which produces around 20,000 valuations each year. Dr Stopford remains part of the shipping research scene and continues to speak at events worldwide. In 2012, Mr Gordon was appointed managing director. He is responsible for the dayto-day running of one of the largest providers of original data to the tanker sector. For that he is included in the list of industry leaders.

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BROKER/ANALYST INDUSTRY LEADERS | 21

Dr Adam Kent

Director, Maritime Strategies International Ltd (MSI) Since joining MSI, Dr Kent has developed and extended MSI’s valuations methodology and capability, providing certificated spot and forecast values, earnings and operating costs for commercial shipping and the offshore sector for many banks, funds and owners. Part of this service involves analysing pricing drivers and dependencies, and deriving benchmark timeseries data (historical and forecast prices, earnings and operating costs) for around 700 different vessel types/sizes/ages each quarter. In addition to contributing to a wide range of consultancy and advisory projects, Dr Kent is responsible for evaluating and forecasting the fleet-supply components of MSI’s tanker, container ship and bulker Shipping Planning Services. Dr Kent has been retained as an expert witness (in both the UK and the US) on a number of valuation, value and cashflow cases across tanker, dry bulk, containership and offshore segments for shipyards, owners, charterers and financiers. He is regularly invited to speak at shipping conferences on a wide range of topics. He graduated from the University of Bath with a first-class BSc (Honours) degree in applied biology, and earned a PhD in theoretical population ecology from the University of Southampton.

Erik Broekhuizen Head of tanker research and consulting, Poten & Partners Erik Broekhuizen is the head of tanker research and consulting at Poten & Partners, one of the largest shipbrokers in the US. New York-based Poten & Partners provides clients with valuable insight into the international oil, gas and shipping markets. The Tanker Research & Consulting group monitors and analyses tanker market and energy developments around the world, and advises companies on strategy development and implementation. Prior to joining Poten & Partners, Mr Broekhuizen was vice president for corporate development and finance at OSG Ship Management, where he was responsible for research and analysis, strategic planning and corporate finance. He also worked as a senior relationship manager at DVB Bank, an institution specialising in international transport finance. Mr Broekhuizen started his shipping career over 30 years ago in the bulk shipping division of the Royal Nedlloyd Group in the Netherlands.

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Tanker Shipping & Trade Industry Leaders 2018


22 | INDUSTRY LEADERS BROKER/ANALYST

Vivek Srivastava Director of tanker research, SSY Consultancy & Research

Denis Petropoulos

Mr Srivastava is director of tanker research at Simpson Spence Young (SSY) shipbrokers in London, where he leads a global team of analysts working on consultancy and research projects concerned with oil and tanker markets. He regularly presents to SSY’s oil and gas, trading and shipowning clients on subjects including industry economics and fundamentals. He is responsible for SSY’s forecasts, and edits all reports and publications on tankers. He is also spearheading SSY’s initiative to reimagine analytics in shipping for the era of big data. Prior to joining SSY in September 2017, Mr Srivastava was at Tufton Oceanic in London for nine years, conducting shipping industry research for hedge fund and private equity investment strategies, and at Maritime Strategies International for five years, modelling and writing economics reports. He holds an MSc in shipping, trade and finance from Cass Business School and a BA (Hons) in philosophy, politics and economics from Keble College, Oxford University.

Commercial director, Braemar Shipping Services Denis Petropoulos is a familiar face in tanker shipbroking, having worked in the industry for 40 years. He takes time to pass on his accrued knowledge by presenting on a wide range of shipping-related topics at major industry conferences, including the Tanker Shipping and Trade event in November 2017. His knowledge of the energy industry and, in particular, the tanker shipping requirement for crude oils, products, chemicals, LPG and LNG extends to all the world’s supply and refinery centres. Mr Petropoulos sits on Intertanko’s Associate Members’ Committee and is a former director of the Baltic Exchange in London, during which time he evolved the Baltic Tanker Routes for trading Freight Forward Agreements (FFAs). He left H. Clarksons in 1985 to open Braemar Tankers. In 2011, he opened the group’s shipbroking office in Singapore and remained there until 2017, heading up the expanding operations in the Asia-Pacific.

Tanker Shipping & Trade Industry Leaders 2018

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24 | INDUSTRY LEADERS PIONEERS

PIONEERS Mark O’Neil Chief executive officer, Columbia Marlow Columbia Marlow chief executive officer Mark O’Neil won a place in this section on account of the pioneering approach he is taking on digitalisation, something he regards as an existential issue for shipping and shipping’s place in the global trade environment. “We have teamed up with Lufthansa as partners to bring aviation, digitalisation and technology into the shipping space,” he told sister magazine Tanker Shipping & Trade on collecting the 2017 Tanker Shipping & Trade Operational Excellence Award. “Digitalisation is about technology: processes and innovation. It is not about the latest software application, though 99.8% of people in the industry wonder ‘Do I have the latest software?’ If you go through the next five years with that frame of mind, you will be out of business because you have to achieve process excellence. You have to go through transformational change, and then you have to digitalise. Software is just one small part of the technology element of the digitilisation process. Those who fail to understand this face an existential threat,” Mr O’Neil explained. Columbia, with its merger partner Marlow, has invested heavily in IT and the whole digitalisation process. It has set up a company called Blue Dynamics, which employs approximately 50 software programmers who are constantly looking at developing new platforms and performance-optimisation software. “We are also exploring alliances and co-operation with digital providers and software houses in different industries because I am keen to bring other industries’ enhanced standards to the shipping industry,” explained Mr O’Neil.

Tanker Shipping & Trade Industry Leaders 2018

Mark O’Neil (Columbia Marlow): Those who fail to understand digitalisation face an existential threat

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PIONEERS INDUSTRY LEADERS | 25

Fritz Heidenreich Founder and president, Q88 LLC

Scott Bergeron

Chief executive officer, Liberian Registry Under chief executive officer Scott Bergeron, the Liberian Registry is pioneering new technologies and challenging a Brazilian court decision that in the Registry’s view overlooked international conventions, ignored international custom, and looked set to have an adverse legal and economic impact on the shipping industry. Liberia’s innovative electronic oil record book (ε-ORB), which it developed in co-operation with Cyprus-based maritime technology company Prevention at Sea, has been scooping up industry awards, including a Tanker Shipping & Trade Technical Innovation Award. “Daily paper recordkeeping is a heavy administrative burden that leads to an inefficient use of time for engineers,” said Mr Bergeron, explaining the motivation for developing the software. He saw that an innovative approach could lead to a game-changing and user-friendly technology that curtailed man-hours, reduced overtime costs and eliminated vague entries and mistakes. Another breakthrough that this entry recognises is the work Mr Bergeron and his team, alongside the International Chamber of Shipping, put in to overturning a decision of the Brazilian courts which, if left uncontested, could have had serious adverse legal and economic consequences for the international shipping industry. On 16 November 2017, the Superior Court of Justice in Brazil unanimously granted Nordic Trustee’s special appeal. The amicus (‘friend of the court’) motion was filed jointly by the Liberian Registry and the ICS (of which the Liberian Shipowners’ Council is a member) to contest this decision. The motion sought to clarify and rescind the lower court ruling, on the grounds that it created uncertainty around the enforceability of mortgages for the majority of the world fleet – including those registers in major flag states such as the US, the Marshall Islands, China and Germany – when such vessels were trading in Brazil. Liberia took swift and decisive action following the decision of the lower court by filing the joint amicus motion to the main proceeding through its local counsel, Basch & Rameh. Liberia successfully submitted to the Court that the decision of the lower court would have an adverse legal and economic impact on the shipping industry, that it overlooked international conventions and that it ignored international custom. Other ship registries, meanwhile, decided not to join the motion despite having major interests in Brazil and notwithstanding the possibility that their mortgages could be questioned and invalidated. Commenting after the case, Mr Bergeron said, “This is an historic victory for ship financing, international commerce and the Liberian maritime programme.”

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Continuous innovation in the world of vetting software explains q88.com founder Fritz Heidenreich’s listing in the pioneer section. Highlights include the cloud-based voyage management system Q88VMS and a new Position List module on Q88.com. The module features accurate distances provided by AtoBviaC, Satellite AIS provided by VesselTracker.com, detailed search and saved search functionality, an intake calculator, and the ability to share with other tanker brokers belonging to the community. About 75% of the tanker industry is signed up to Q88.com. Prior to establishing Q88, Mr Heidenreich was the chief information officer of Heidmar Inc, a commercial tanker pool operator based in Norwalk, Connecticut. He spent 15 years developing the company’s internal voyage and pool management system, www.eFleetWatch.com. An interesting footnote is that Mr Heidenreich has a bachelor’s degree in aerospace engineering. As is sometimes pointed out, the maritime industry often looks to the aviation sector as an exemplar when it comes to matters of safety.

Fritz Heidenreich (Q88): continuous innovation

Tanker Shipping & Trade Industry Leaders 2018


26 | INDUSTRY LEADERS PIONEERS

Michael Kingston

Founder, Michael Kingston Associates Gregarious lawyer Michael Kingston deservedly makes our pioneers section for his stalwart efforts to help drive up industry standards in the polar regions. The role that Mr Kingston has played in galvanising the industry on this allimportant topic should not be downplayed. One tangible outcome has been the entry into force of landmark legislation The Polar Code. He attributes the headway made to the fact that the industry has truly taken an integrated approach to the issue.

The Polar Code actually saw the light of day by way of amendments to three cornerstone IMO conventions – Marpol, STCW and SOLAS – rather than as a standalone convention which supported its smooth passage. Anyone casting even a passing glance at the Ballast Water Management Convention will appreciate the difficulties that can arise when trying to enact standalone legislation. Not one to rest on his laurels, Mr Kingston is in the vanguard of an industry bestpractice forum convened to

Anil Sharma

President and chief executive, Global Marketing Systems (GMS)

As the president and chief executive of Global Marketing Systems (GMS), the world’s largest cash buyer of ships for recycling, Anil Sharma could choose to narrowly focus on the business at hand. He makes our pioneer section because of the huge personal commitment he has shown to elevating safety standards and bringing much-needed visibility to this vital part of the industry. The question of where to recycle a tanker remains highly charged. “There is a myth that

Tanker Shipping & Trade Industry Leaders 2018

identify and promulgate best practices that cover aspects of polar operations and transcend national boundaries. Perhaps less well known is his wider humanitarian work. One example is the work he has done, in a voluntary capacity with the ICS, in advocating the implementation of a Humanitarian Assistance Zone in the Mediterranean. Mr Kingston’s commitment to raising the industry’s safety bar is at least partly explained by the tragic loss of his father, who died on board the oil tanker Betelgeuse when

it exploded in West Cork, Ireland, at the offshore jetty of the Whiddy Island Oil Terminal on 8 January 1979. “I understand the consequences of getting things wrong in quite a tragic way. And I know therefore the benefits of putting 100% in to making sure that, as best we can, it doesn’t happen to other seafarers,” he explained.

responsible ship recycling can only be done in Turkey, China or in the western world. Then there is another myth: if you beach a vessel it can’t be considered responsible recycling,” asserts Dr Sharma. “Turkey also beaches vessels. The Hong Kong Convention is not against beaching. It says responsible recycling can be done in various ways: drydock, alongside or beaching.” In contrast. the European Union is creating a shortlist of approved yards for recycling European-flagged tonnage and is using criteria likely to exclude beaching yards. A recent example of GMS’ industry leadership has been the creation of the industry’s first guidelines for cleaning tankers for hot works prior to delivery to recycling yards. GMS’ policy is that any tankers purchased on an ‘as is where is’ basis will be cleaned according to these guidelines.

Dr Sharma told our sister title Tanker Shipping & Trade that the guidelines were partly motivated by recent fatal accidents aboard vessels in Pakistan. “This should serve as a serious wake up call to tanker owners that their vessels must be totally cleaned of all cargo residues, slops and sludges in all cargo and slop tanks in order to mitigate risks of an accident at recycling yards. “Regrettably, we have noticed a few shipowners are shying away from such an important and fundamental responsibility.” Dr Sharma says that GMS – as the market leader – has to be in the vanguard of correcting these misconceptions. “The ship recycling industry does not have an international trade association that can represent it in any organised way. We would love one.”

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28 | INDUSTRY LEADERS MARITIME SERVICES

MARITIME SERVICES Nigel Anton Global head of shipping finance, Standard Chartered Bank The number of banks actively lending in shipping can be counted on one hand. One bank that has stayed the course is Standard Chartered, a bank whose close ties with Asia allows it to tap into the Chinese market. The global head of shipping finance at Standard Chartered is Nigel Anton, who is based in Hong Kong. He joined as one of the pioneers in the shipping finance business at Standard Chartered in 2007, and he is responsible for the bank’s global shipping finance activities, which include both the debt and lease businesses. Mr Anton leads a global team operating out of offices in London, Dubai, Singapore,

Shanghai, Tokyo, New York and Hong Kong. Standard Chartered’s shipping portfolio has grown to over US$5.6Bn, comprising both debt and lease transactions, many of which have been award-winning transactions across Standard Chartered’s footprint of Asia, Africa and the Middle East. Before joining Standard Chartered Bank, Mr Anton spent over 20 years at DnB Bank, initially in aircraft finance roles. From the early 1990s he was involved in all aspects of shipping finance, both in origination roles and special finance. In his last role at DnB Bank, he was responsible for the structured finance activities of DnB’s London office, with

a specific focus on the UK tax lease market. Prior to DnB, Mr Anton spent two years at HSBC focusing on medium and bigticket UK leases. Mr Anton commenced his banking career at S G Warburg. He holds a degree in economics from the University College of North

Ingmar Loges Managing director for shipping finance, DVB Bank Ingmar Loges is a stalwart of the shipping finance conference circuit. His selfdepreciating one-liners are aimed as much at himself as his fellow bankers. Mr

Loges adds the humour to the wisdom of his experience at heavyweight shipping finance panels around the world. Mr Loges joined

Tanker Shipping & Trade Industry Leaders 2018

DVB Bank in 2016 from the German bank HSH Nordbank, which had been looking to shrink its exposure to the shipping markets. At DVB he joined

Wales. He is a Freeman of the City of London, and a Freeman of the Worshipful Company of Shipwrights. Mr Anton is chairman of Standard Chartered Bank Hong Kong’s Rugby Committee, responsible for the bank’s support of community and youth rugby in Hong Kong.

SVB board member Bart Veldhuizen, making a formidable team in the shipping finance sphere. Mr Loges takes on responsibility for DVB’s shipping finance business in the western hemisphere, encompassing Europe, the Nordic countries and the Americas. German-born Mr Loges is something of an Anglophile, having spent an early part of his career working in London for shipbroker Jeppesen Heaton. He has also worked for Deutsche Bank and UniCredit Bank.

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MARITIME SERVICES INDUSTRY LEADERS | 29

Richard Greiner Partner, Moore Stephens Richard Greiner is probably the best-known accountant in shipping, being a partner at Moore Stephens, which is probably the bestknown firm of accountants in the industry. Mr Greiner has over 30 years’ experience in providing assurance and advisory services to the shipping and offshore maritime industries. He is a frequent speaker at shipping events, a council member of the Ports and Terminals Group, a trustee of the Maritime London Officer Cadet Scholarship, and a board member of the OSCAR campaign. Mr Greiner is an innovator in the field of shipping finance, having initiated the Moore Stephens OpCost report. This report takes anonymised ship operating costs gleaned from the accounts of the many shipowners and operators to which Moore Stephens provides audit and accounting services. In addition to the OpCost report, Mr Greiner also regularly takes the pulse of the shipping business though the Moore Stephens Shipping Confidence surveys. In a recent blog post, Mr Greiner notes that shipping confidence held steady at its highest rating in the past three-and-a-half years in the three months to end-November 2017. The report concluded that the average confidence level expressed by respondents was unchanged at the level of 6.2 points out of 10.0 points recorded in the previous survey in August 2017. Confidence on the part of charterers was significantly up, from 4.7 points to 7.7 points, the highest rating recorded for this category of respondent since the survey was launched in May 2008 with an overall rating of 6.8 points. Managers (up from 5.8 points to 6.1 points) were also more optimistic, while brokers’ confidence was unchanged at 6.3 points. The rating for owners, however, fell from 6.5 points to 6.4 points. Confidence levels were down in Asia, from 6.4 points to 5.7 points, and unchanged in Europe and North America, at 6.3 points and 5.8 points, respectively.

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Tanker Shipping & Trade Industry Leaders 2018


30 | INDUSTRY LEADERS MARITIME SERVICES

Harry Theochari Global head of transport, Norton Rose Fulbright Shipping and asset-finance lawyer Harry Theochari is Norton Rose Fulbright’s global head of transport. He is known for his forensic approach and ferocious intellect, which he marries with a deep, abiding love for the maritime industry. His reputation as the maritime industry’s magic circle lawyer derives from his many years’ experience in international shipping finance, including syndicated facilities,

OECD and Export Credit based financings, structured financings, private equity and capital market transactions. As one of the most connected and consulted professionals in the business, the industry often turns to him for insight into where the capital will flow in and out of the tanker industry. This acumen was clear for all to see when he took to the podium at November’s Tanker Shipping & Trade Conference in London.

Harry Theochari (Norton Rose Fulbright): Financial acumen allied with a deep maritime sensibility

Tanker Shipping & Trade Industry Leaders 2018

Michael Parker Global head for the shipping, logistics and offshore industries, Citigroup Michael Parker is the most recognised name and face in shipping finance, and the news that he is going to chair an industry conference or panel is enough to guarantee a sell-out. Since graduating with a degree in politics, philosophy and economics from Magdalen College, Oxford University, in 1977, he has worked for only one organisation: Citigroup (or its previous incarnations). Between 1977 and 1985, he looked after Citi’s relationships with many large oil and mining companies. In October 1985 he joined Citibank’s Shipping division in London, with specific responsibility for remedial management. In 1989 he took over as head of northern Europe shipping. In 1997 he was appointed global head for the shipping, logistics and offshore industries. Mr Parker is also vice chairman of corporate and investment banking (EMEA), and co-head of the CIB Industrials sector in EMEA. In April 2016, he was also appointed chairman of corporate banking (EMEA). Under his leadership Citi receives recognised industry awards across the different areas of shipping finance. Mr Parker was named Marine Money’s Dealmaker of the Year in 2012. In 2015, he was awarded the New York: Capital Link Leadership Award. After 31 years’ involvement with shipping finance, it is no surprise that we too recognise his unique and extensive contribution to the shipping industry. Asked how he regards the prospects for the tanker industry, he replied “I see many parallels with the aftermath of the workouts the bank performed in the late 1980s. Those companies that opened an early dialogue with their lenders were also the ones able to respond the quickest to the merger and acquisition opportunities. We are seeing that today, but under the new banking environment, banks have to be very careful who they choose as partners. Ultimately, what you decide not to do is just as important as what you do”

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INDUSTRY ASSOCIATION INDUSTRY LEADERS | 31

INDUSTRY ASSOCIATIONS Katharina (Kathi) Stanzel Managing director, Intertanko

Kathi Stanzel (Intertanko): Taking operational excellence to new peaks

Under managing director Katharina (Kathi) Stanzel, Intertanko continues to make a vital contribution to the industry by making its voice heard across the full spectrum of technical and commercial subjects. One example from the past 12 months has been the strong stand taken on the European Parliament’s decision to include shipping in the EU Emissions Trading System as of 2023, unless a comparable system is agreed under the auspices of IMO by the end of 2021. Dr Stanzel was appointed managing director in July 2011. A year later the organisation unveiled a five-year strategic

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plan detailing areas that it would focus on through to 2017: sustainability; the human element; security; greenhouse gas emission reduction; air emissions; and ballast water management. Significant achievements have been registered in each area. Yet there has been no slackening, and ambitious goals have been set for the next five years. “The important thing about Intertanko is that it is a quality club. It is not about minimum standards. It is not about just having an association and a voice at IMO. It is about pushing industry quality forward and getting operational excellence to the peak,” she explained.

Tanker Shipping & Trade Industry Leaders 2018


32 | INDUSTRY LEADERS INDUSTRY ASSOCIATIONS

Howard Snaith

General manager, Chemical Distribution Institute (CDI) Chemical Distribution Institute (CDI) general manager Howard Snaith reports a busy start to the year. It opened with the launch of Chemical Tanker Operations for the STCW Advanced Training Course. Developed over the course of three years in collaboration with industry stakeholders (including chemical manufacturers, charterers and parcel tanker operators), the publication offers an in-depth guide for chemical tanker ship operators and managers and those undertaking the advanced training required by the STCW Convention. Such a frenzied start to 2018 will not faze Captain Snaith. A

hallmark of his leadership is a certain calmness under fire. This trait was forged at sea, and no doubt enhanced during his time as a liaison officer to the European Naval Force at the height of the last piracy crisis. His contributions saw him awarded the Common Security & Defence Policy Service Medal. His sang-froid was also very much in evidence at November’s Tanker Shipping & Trade Conference, where he tackled a range of often pointed questions about CDI and vetting in general. What was also obvious was the progress the CDI scheme has made on his watch. Capt Snaith has introduced a ‘motivated

Karen Purnell

Managing director, International Tanker Owners Pollution

Federation Ltd (ITOPF)

International Tanker Owners Pollution Federation Ltd (ITOPF) managing director Karen Purnell had a busy start to the year with her organisation responding to the sinking of the Iranian oil tanker Sanchi. This was handled with the calm efficiency that has characterised her tenure. One of Dr Purnell’s key objectives has been to raise the profile of the organisation among tanker industry owners. While the organisation represents close to 97% of world tanker tonnage, for most of its history, most owners have been oblivious to the fact that they are members of ITOPF. This probably stems from their having been (typically) registered by their P&I clubs, rather than by themselves. The awareness campaign has borne very positive results. “We are more than just an ambulance service in that we are part of their ongoing health care. We use our statistics to demonstrate that the tanker industry has an excellent reputation,” she explained. This year will afford industry the opportunity to reflect on ITOPF’s excellent reputation: 2018 marks the organisation’s 50th anniversary.

Tanker Shipping & Trade Industry Leaders 2018

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INDUSTRY ASSOCIATIONS INDUSTRY LEADERS | 33

reasons’ scheme to provide owners with an avenue to appeal an invoice they feel is “excessive.” ‘Supporting a claim’ means that CDI can nominate a second inspector for the job. “That is in full compliance with competition guidelines because it is generating competition, and that usually works in actually providing an alternative to the ship operator at a better price,” he explained. At the time of our last meeting Captain Snaith said there had been three complaints against inspectors in 2017. The complaints were reviewed by the CDI accreditation committee, and two of the three were dismissed because the high number of observations recorded could be evidenced. The third complaint related to an inspector who missed a CDI inspection. “He had been nominated and accepted for a CDI inspection, and then a SIRE inspection came along so he went along and did that, thinking he could squeeze it in ahead of the CDI inspection,” explained Captain Snaith. “He found out he couldn’t. He never told us about it, so he was suspended for six months.” Captain Snaith’s message to the market is that “you can come to us and tell us your issues. We do listen, and we do act.”

Tim Wilkins

Environment director and regional manager for Asia-Pacific, Intertanko

Ordinarily we would not look to include two people from the same organisation. But Intertanko’s Tim Wilkins returns on merit. It has been another year in which he distinguished himself as one of the industry’s ‘go-to guys’ on environmental matters, and especially environmental regulation. Mr Wilkins has a particular knack for explaining the complex in clear and engaging terms. Well liked and well informed, we remain of the view that he is one of the sector’s rising stars.

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Mark Ross Chairman, OCIMF Chevron Shipping Company president Mark Ross is the new OCIMF chairman. With this appointment an already influential industry figure becomes an even more influential one. Industry will be watching keenly to see how he tackles the myriad challenges confronting the sector. But he is quick to assert “First and foremost, we must continue to focus on the safety of the people that work in this important industry. We also must care for the environment and protect the oceans for the future. I also believe we must collaborate and build links with other shipping bodies to develop a more cohesive and effective community.” Mr Ross of course brings impressive pedigree to the role, having risen through the ranks at Chevron Shipping. He has done his time at the industry’s coal face, including as manager of Chevron Shipping’s Pacific Fleet.

Tanker Shipping & Trade Industry Leaders 2018


34 | INDUSTRY LEADERS CLASS / FLAG

CLASS / FLAG Catrine Vestereng

Business director for tankers, DNV GL Catrine Vestereng has spent nearly a quarter of a century working at DNV GL, during which time she has witnessed the growth of the oil and gas side of the business, promoted by Norway’s deep involvement in North Sea exploration. Toward the end of the last century, Norway became a key player in sustainable energy generation, especially wind power, and DNV GL was quick to provide services in this sector. At the same time, DNV GL was undertaking more projects in co-operation with German class society Germanischer Lloyd, which published its first ship register in 1868. Although the merger of DNV GL did not take place until 2013, there had been merger talks as early as 1986, as well as in 2000 and 2006. During these changes, Mrs Vestereng worked at DNV GL in various capacities, including three years as a surveyor. Her CV includes several years working on newbuilds in both Korea and China. Mrs Vestereng has spent a decade focusing on tankers in her role as fleet in service manager, which gives her a good insight into the daily challenges of tanker operations. Mrs Vestereng is a widely regarded speaker on the practical impact of technical changes to class rules. For instance, she has given papers on DNV GL’s work on finding new and safer ways to inspect ballast water tanks and coatings following the introduction of the CRS Rules on fatigue and coating failure. In one case, the close inspection of tank structures by drones was shown to be not only feasible but costeffective. Mrs Vestereng is included in the list of industry leaders on account of her explanations of how knowledge gained through the scientific studies conducted by class societies can be fed back into real-world tanker operations.

Tanker Shipping & Trade Industry Leaders 2018

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CLASS / FLAG INDUSTRY LEADERS | 35

John Ramage Chief operating officer, International Registries John Ramage is the chief operating officer of International Registries Inc (IRI), which provides technical and administrative services to the Marshall Islands flag. This flag is flown by the majority of tankers, according to a recent survey. Mr Ramage joined IRI’s London office in March 2002 and was appointed managing director in January 2003. He was instrumental in the establishment of offices in Hamburg (2007), Roosendaal (2008), Mumbai (2008) and Dubai (2009), where he continues to have a management role. In 2009 Mr Ramage accepted the title of director for worldwide business operations, whereby he was responsible for IRI’s global network of offices. Mr Ramage was appointed chief operating officer of IRI in April 2011 and continues to be responsible for IRI operations around the world, including IRI’s headquarters in Washington, DC/Reston. Mr Ramage has an extensive background at sea, having sailed with BP Tankers, Mobil Shipping and Maersk Line. He spent 14 years in the shipmanagement industry, predominantly in Hong Kong with Denholm Ship Management and Eurasia Ship Management, where he rose to vice president, managing a fleet of 50 vessels. Mr Ramage holds a Master Mariners Certificate and a Master of Business Administration degree from the University of Edinburgh, as well as a Bachelor of Science Honours degree in nautical studies from Liverpool Polytechnic.

Christopher J. Wiernicki Chief executive officer, American Bureau of Shipping

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Christopher J. Wiernicki is the chief executive officer of the American Bureau of Shipping (ABS), and something of a deep thinker on the direction of naval architecture and the shipping industry in general. In his recent remarks to the Society of Naval Architects and Marine Engineers, Mr Wiernicki said the next generation of naval architects and marine systems engineers will be more aligned to the ethos of aerospace or automotive innovators – capable of engineering, design thinking and having a convergent mindset. This may include increased autonomy to meet the required regulatory framework. “Our future will be shaped by new technologies and the rate of technology change, new mindsets and skill sets, new expectations and regulations that are more risk-based and performance-based, and a new balance between data-driven and experience-driven decision making,” Mr Wiernicki said. Mr Wienicki’s CV includes a long list of extra-curricular appointments and awards. He holds a BS degree in civil engineering from Vanderbilt University, an MS degree in structural engineering from George Washington University, an MS degree in ocean engineering from the Massachusetts Institute of Technology, and is a graduate of Harvard Business School’s Advanced Management Program. He has been inducted into the hall of fame equivalents at his various alma maters, and he has received the Vice Admiral Emory S. “Jerry” Land Medal from the Society of Naval Architects and Marine Engineers for Outstanding Accomplishment in the Marine Field. In 2016, he was inducted into the International Maritime Hall of Fame,

Tanker Shipping & Trade Industry Leaders 2018


36 | INDUSTRY LEADERS CLASS / FLAG

Jorge Barakat Pitty Minister of Maritime Affairs, Panama Maritime Authority

Alastair Marsh Chief executive officer, Lloyd’s Register When Alastair Marsh took over from Richard Sadler as chief executive officer of Lloyd’s Register (LR) in May 2015, some eyebrows were raised. He had ascended from the position of chief financial officer, with a background of accountancy and finance, rather than having climbed the class society career ladder from engineering and surveying. But during his tenure as chief financial officer, Mr Marsh focused on specific growth enablers, which saw the LR exceed £1Bn turnover for the first time and expand its breadth of technical assurance and consulting services. Mr Marsh was instrumental in LR’s largest-ever investment in, and subsequent acquisition of, energy services company Senergy. The appointment of Mr Marsh said a lot about how LR and its role have changed since its inception in 1760. Although Mr Marsh has an accountancy background, rather than one in engineering or seafaring like many of his colleagues at LR, he is fully conversant with the aims of the business: the safety of ships and the environment. Commenting on LR’s report, Low Carbon Pathways 2050, he noted that global shipping transports around 90% of world trade, but accounts for only 2.3% of the world’s total greenhouse gas emissions, compared with 2.8% in 2007. He endorses the view that shipping must take on a bigger role in the decarbonisation of the environment, and that it should be more active in setting the regulatory framework required to achieve this goal. Mr Marsh sees the need for any future regulation to provide the right incentives to drive the change needed, and for business strategies and consistent policies that can be combined to reduce shipping emissions. Mr Marsh joined LR as group financial controller in April 2007, and was appointed group finance director in April 2008. Mr Marsh holds a Business Studies and Accounting degree from Edinburgh University and is a member of the Institute of Chartered Accountants of Scotland. He sits on the LR board as executive director and on the boards of many LR subsidiary companies.

Tanker Shipping & Trade Industry Leaders 2018

Jorge Barakat Pitty trained as a lawyer, and holds a degree in law and political science from the University of Panama and a Master’s degree in negotiation, mediation and arbitration from the Latin American University of Science and Technology. As befitting an administrator in the Ministry of Maritime Affairs, he also studied maritime procedural law with an emphasis on international maritime law. From 2009 to 2011, Mr Barakat served as deputy Administrator of the Panama Maritime Authority. In July 2014 he was appointed Administrator of the Panama Maritime Authority with the rank of Minister of Maritime Affairs. Since then, Mr Barakat has dedicated himself to transforming the authority into a “modern, transparent and open” entity with a culture of service responding to the demands of the international maritime industry. As the authority oversees the world’s largest ship registry, Mr Barakat has multiplied the registry’s technical offices (Segumar) worldwide and modernised systems through the digitalisation of all processes for ship registration. He has increased Panama’s participation, at the highest level, in IMO while signing co-operation agreements with other maritime administrations. In February 2018, Mr Barakat signed an agreement with China’s Minister of Transport. Due to this agreement, Panama will receive “Most Favored Nation” status, which means that all Panamanianflagged vessels calling at China’s ports will get the preferential rate for tonnage dues, savings that equate to a 28% discount for each vessel’s tonnage dues.

Jorge Barakat Pitty (right) with IMO Secretary-General Kitack Lim at IMO in 2016

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38 | INDUSTRY LEADERS CHARTERERS

CHARTERERS Guy Mason

Chief financial officer, BP Shipping

Guy Mason (BP Shipping): “1.7M a day, 70,000 per hour, 1,200 a minute.”

Guy Mason’s job title, BP Shipping chief financial officer, belies the greater role he plays in championing safe and responsible shipping in the wider industry. As attendees of the 2017 Tanker Shipping & Trade Conference will testify, Mr Mason is helping ensure that BP has robust defences versus “[one of its] most fast-moving security concerns…the cyber challenge.” Mr Mason told the gathering that in 2016, BP Shipping intercepted 614M phishing emails – “1.7M a day, 70,000 per hour, 1,200 a minute.” He is championing women in the industry, and is also a non-executive director of Oil Spill Response Ltd. Lest anyone question his technical credentials, Mr Mason graduated with a first-class degree in mechanical engineering from Loughborough University.

Dr Grahaeme Henderson

Vice president, shipping and maritime, Shell International Trading and Shipping Company Ltd Last year saw the shipping arm of Royal Dutch Shell, Shell International Trading and Shipping Company (STASCO), celebrate 125 years of delivering energy worldwide. With such a weight of history behind him, Grahaeme Henderson has a specific agenda for the company, namely maintaining the company’s role in shipping safety management. To this end, he sits on various industry bodies. He is chairman of the Oil Companies International Marine Forum, vice president of the UK Chamber of Shipping and chairman of the UK Shipping Defence Advisory Committee. He

Tanker Shipping & Trade Industry Leaders 2018

is also a member of the World Economic Forum’s Global Agenda Council on the Oceans. Before joining Shell, he achieved a first-class Honours BSc degree and completed a PhD on the mathematics of sea waves. Dr Henderson is a professional chartered engineer. His early career at Shell took him around the world. He became a director and a member of the STASCO executive committee in 2011. Dr Henderson is responsible for the company’s maritime activities, encompassing offshore, tankers and gas shipping.

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CHARTERERS INDUSTRY LEADERS | 39

Ian Taylor Chairman and chief executive officer, Vitol Group Ian Taylor is the chairman and chief executive officer of the Vitol Group, one of the largest independent crude oil trading companies in the world. The company was founded in Rotterdam in 1966, and trades through around 40 offices worldwide. Vitol trades around 350M tonnes of crude oil and oil products annually, and has on charter around 250 vessels at any one time. In 2016, the company was responsible for over 6,800 sea voyages. Vitol controls around 18m3 of storage, 480,000 bbl/d of refining capacity and 5,000 service stations. In addition, Vitol controls Cockett Marine Oil, one of the leading suppliers of bunker fuel (7.5M tonnes annually). Mr Taylor started his career with Shell, moving from being a local representative in Venezuela to roles in operations and trading. He moved to Vitol in 1985, first as a manager in London, before working as the managing director of Vitol’s Singapore operations. He has since moved back to London, where he owns two restaurants. He made the national news in the UK in 2005 when he rescued the historic clothing business Harris Tweed, which is a major employer on the Isle of Lewis.

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Tanker Shipping & Trade Industry Leaders 2018


40 | INDUSTRY LEADERS CHARTERERS

Marco Dunand

Chief executive officer, Mercuria Marco Dunand is one of the co-founders of commodity trader Mercuria, which is said to trade around 1.5M bbl of crude oil per day. He founded the trading house in Geneva in 2004 with Daniel Jaeggi, and together, under the Mercuria name, they have established trading hubs in Singapore, Shanghai, Beijing, London, Chicago and Houston, and a further 30 offices around the world. The company has expanded its operations to cover trading in bulk commodities, and has significant assets in commodity production, logistics and storage. The company has expanded through a combination of organic growth and mergers. The largest merger took place in 2014, when Mercuria acquired the US-based commodity business of JP Morgan for US$3.5Bn. It was one of the biggest takeovers in the trading sector. At the time, Mr Dunand said the deal was done to boost Mercuria’s presence in trading physical oil and gas commodities in the US, as opposed to growing that side of the business organically. In 2016, Mercuria sold 12% of the company to China National Chemical Corp (more widely known as ChemChina). The deal raised some eyebrows because ChemChina is a Chinese state-owned company, and in some ways the antithesis of a privately owned trading house like Mercuria. Marco Dunand explained the rationale was not to boost the capital of Mercuria, but to provide access to the Chinese chemical market. ChemChina is a large refiner and producer of agrichemicals in China. In return, Mercuria gained access to ChemChina’s requirement to acquire feedstock from around the world. With such a relatively innovative background, it may come as no surprise that Mercuria was the first oil trading commodity house to initiate a blockchain oil trade. The use of a distributed ledger accessible to all the stakeholders in a trade would, in theory, speed up the transaction. Marco Dunand states that blockchain disrupts the paper side of trading in the same way that oil trading has been physically disrupted by the introduction of relatively cheap shale oil. Currently it takes around 40 days for the bill of lading documents on a West Africa to China physical crude oil trade to circulate. The Mercuria blockchain trade is said to have only taken seven days.

Tanker Shipping & Trade Industry Leaders 2018

Jeremy Weir

Chief executive officer, Trafigura Under chief executive officer Jeremy Weir, Trafigura has emerged not only as a more active charterer of Aframax tonnage but also as a major mover in the newbuilding market, exemplified by its support for an order of up to 32 crude oil and product tankers to be built in Korea and China. The order has a potential value of US$1.35Bn and is being placed by a close Asian financial partner. On delivery the vessels will be leased to Trafigura, with options to purchase. The original order was a firm order for 22 crude oil and product tankers with options for a further 10 vessels, consisting of medium range (MR) tankers, LR2s and Suezmax tankers. The vessels will be built by Korea’s Hyundai Heavy Industries and the Chinese privately owned shipbuilder New Times Shipbuilding. Vessels will be delivered from the end of 2018 through 2019, with the majority of vessels being delivered in the first quarter of 2019. Where Mr Weir and Trafigura tread, others tend to follow. It is likely that this bold move is a portent of traders taking greater control of their supply chains when tanker tonnage is so keenly priced.

Jeremy Weir (Trafigura): Bold market moves

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Tanker Shipping and Trade Industry Leaders 2018  

Tanker Shipping & Trade Industry Leaders is an annual supplement to Tanker Shipping & Trade, the world's leading magazine dedicated to exclu...

Tanker Shipping and Trade Industry Leaders 2018  

Tanker Shipping & Trade Industry Leaders is an annual supplement to Tanker Shipping & Trade, the world's leading magazine dedicated to exclu...

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