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The icebreaker tug Zeus is smaller than her cousins in the Finnish icebreaker fleet, but this winter has given her and her crew the chance to prove what they are really made of.
Polish push The old Hansa town Gdansk is firmly determined to challenge the supremacy of the North European continental ports, via its new deepwater terminal.
New CEO with building plans Mikael Backman thinks that the next generation of vessels must offer the customers more than the present cruise ferries on the Baltic Sea.
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Breaking the ice
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No 3 is published on June 4.
Breaking the ice The icebreaker tug Zeus is smaller than her cousins in the Finnish icebreaker fleet, but this winter has given her and her crew the chance to prove what they are really made of.
Polish push The old Hansa town Gdansk
is firmly determined to challenge the supremacy of the North European continental ports, via its new deepwater terminal.
New CEO with building plans
Mikael Backman thinks that the next generation of vessels
must offer the customers more than the present cruise ferries on the Baltic Sea.
by Det Norske Veritas
Price EUR 12 No 2 – April 16, 2010 www.shipgaz.com
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4 SHIPGAZ NO 2 2010
Snow, ice and love WELCOME At this latitude it always seems winter is endless, that spring has given up thoroughly this time and that it was silly to ever hope for anything but rain and a hundred shades of grey. This year though, something happened. Gothenburg was snow covered for more than two months, with icicles growing from all roofs and, above all, it was all bright. Although this winter’s ice cover extent classifies as “normal” and not “severe”, it appeared to take the industry somewhat by surprise and has certainly been a busy one for icebreakers. Shipgaz visited the icebreaking AHT Zeus, which seemed to have no pauses at all in the assisting of ships stuck in the ice. The Norwegian Supreme Court verdict against the retroactive shipping tax meant celebration among many of Norway’s shipowners. Then the government proposed a new version of shipping taxation that has set the industry rocking once more.
The icebreaker tug Zeus is indeed smaller than her cousins in the Finnish icebreaker fleet, but this winter has given her and her crew the chance to prove what they are really made of. PAGE 54
»His tip is to look way beyond the main engine when optimizing a ship’s overall performance«
Shipgaz have also visited the old Hansa town of Gdansk, where the plan is to challenge the supremacy of North European container ports. Our technical columnist again points his spotlight towards the popular topic of fuel saving. His tip is to look way beyond the main engine when optimizing a ship’s overall performance. We also have a bit of love in this issue. Read in the Retro section about the Tuvaluan ship cook that was struck by love in Danish Ommel in the 1960s, and how that was the start of a tradition of employing crew from the little island nation. ASSISTANT EDITOR-IN-CHIEF Anna Lundberg firstname.lastname@example.org
NEWCOMER In 2000 Erik Hays Thøgersen bought a laid-up train ferry. Ten years and USD 120 million later, the ship is now a high-tech offshore vessel. PAGE 28
PORTRAIT Viking Line’s new CEO Mikael Backman thinks that the present concept in ferry traffic between Finland and Sweden is the right one. PAGE 14
NEWCOMER The shuttle tanker Mikhail Ulyanov is designed especially for operations between Arctic oil fields and an oil terminal in Murmansk. PAGE 50
NO 2 2010 SHIPGAZ 5
Intro »Hopefully the shipping industry has used the recession as a breathing pause to find new solutions« EDITORIAL PAGE 7
In this issue 14 Fleet renewal has top priority 20 Government still vying for (less) shipping tax 24 Fiasco, failure, disappointment 28 From train ferry to offshore vessel 34 Gdansk on the rise 44 A sparrow on the high seas 48 Sweden strict on sulphur limit 50 Russian tanker of Finnish design 52 Small but vital changes 54 Icebreaking around the clock 86 Not all about main engines 88 Maersk opens offshore simulator 98 Former steamer turns fiy 102 It began with love in Ommel
Regular sections 7
8 Review 12 Market Review 14 Portrait 28 Newcomer REPORT The coaster Elisabeth Boye is
operating far beyond Europe. The vessel truly follows its predecessors – the coasters of Marstal, called Groller (Sparrows). PAGE 44
RETRO Fifty years is a considerable age for
a passenger ship nowadays. For the former steamer Kristina Regina turning fifty also means retirement. PAGE 98
90 Technical Review 94 Fleet Review 98 Retro
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NO 2 2010 SHIPGAZ 7
Editor-In-Chief Rolf P Nilsson email@example.com
Crisis forces new solutions »The number of new candidates seeking new job opportunities was up 26 per cent in Q1 versus Q1 last year and candidates were placed in an average of nine weeks, down from 11 weeks in 2009«
n a sense, the recession that hit the world in 2008 actually was a blessing to shipping. Carried by a an ever increasing demand for maritime transport that never seemed to end, the world merchant fleet expanded, based on expectations for the future that today with hindsight was unrealistic, to say the least. The world order book was filled to the rim with orders for new vessels to be launched and delivered in a pace never seen before. Parallel to this, quality, safety, and security demands from society in general, and in some sectors from cargo owners in particular, increased the pressure on shipowners to have their vessels manned by qualified crews and professional individuals.
An already difficult recruitment situation was heading towards disaster as new vessels were about to enter shipping markets at a pace never seen before, while at the same time almost no old vessels were sent to the scrapping yards. Ship managers were not the only ones facing competence challenges. When the fleet grows, so do all other activities surrounding it. Classification societies, insurance companies, authorities, equipment suppliers, shipbuilders, maritime services providers, all needed people with seagoing experience to secure the quality of their services. By 2008, shipping faced a full-scale battle for maritime competence and experience. Shipowners and managers competed to poach officers from each other. Simultaneously they had to fender off attacks from the other players in the maritime cluster that were in dire need of people with maritime training and onboard experience to safeguard the quality and supply of their services. Then in the autumn of 2008, the walls of Lehman Brothers came tumbling down, and the financial crisis was a fact.
Since then, shipping has focused on survival. ”Hot/cold lay-up”, ”slow steaming”, ”order cancellation”, ”conversion”, ”delivery delay”, ”minimize overhead costs” and ”consolidation” are just some of the words and terms that have passed “recruitment”, “retention of seafarers”, “training” and “seafaring competence” on many shipowner board’s priority agendas. With fewer ships in service and more sent to scrap, at the same time as fewer than anticipated were delivered, the need for crews, not least qualified ones, eased. But now, there are factors indicating that we relatively soon will be back on track. Forecasts for world trade and industrial output are cautiously optimistic, vessel ordering has increased, albeit from a very low level and vessels
in some shipping sectors are leaving their anchorages. In times of recession, people who are able to stick to their current jobs, just do that and there is little movement on the labour market. Recently Faststream, a recruitment company for maritime shorebased work positions, reported that the wheels have started to turn. The number of new candidates seeking new job opportunities was up 26 per cent in Q1 versus Q1 last year and candidates were placed in an average of nine weeks, down from 11 weeks in 2009. If the maritime shorebased labour market grows, there will also be new opportunities at sea. All the problems that the HR teams at the shipowners and shipmanagers faced in the good times of the last decade will now surface again. Shipboard employees will have to be recruited, retained and trained. The challenges for the industry prevail. The biggest problem to tackle for recruitment is that shipping today hardly exists in the eye of the general public. As ships, with the exception of ferries, have left the city centre to new port terminals at obscure places surrounded by ISPS approved fences, the world fleet has become, if not invisible, something only known to the people working professional with it.
The only thing that makes shipping hit the headlines is a real accident, preferably with a large oil slick as a result. This is good news for media, but less so for recruitment to the industry. Media reports on abandoned rustbuckets with crews from poor countries that haven’t received salaries for months and live on charity from nice people in the port where they have been stranded, does not add much on the positive scale to the picture of shipping as an international, modern, exciting, high-tech, welcoming industry either. If the industry manages to attract new entrants despite this, the next challenge will be to keep them. This is not an easy task when the new recruits realise that if they make a mistake in their professional life, they could face several years in trials and prison in a foreign country, irrespective of it being unintentional or not.
Hopefully the shipping industry has used the recession as a breathing pause to find new solutions. Otherwise, we will be in serious problems again in a not too distant future.
Rolf P Nilsson, Editor-in-Chief
8 Shipgaz No 2 2010
Photo: statsministeriet/The prime minister’s office
Photo: anna lundberg
Shipgaz Calendar Ferry Shipping Conference When: 20–22 April 2010 Where: Onboard the Color Magic sailing Oslo-Kiel-Oslo
Marine Renewable Energy When: 21–23 April 2010 Where: Rina headquarters, London, UK
Sea Japan 2010 When: 21–23 Apr 2010 Where: Tokyo BIG SIGHT Exhibition Center, Tokyo, Japan
Arctic Shipping Summit When: 27–29 April 2010 Where: Helsinki Congress Paasitorni, Helsinki, Finland
Motorship When: 28–29 Apr 2010 Where: Atlantic Kempinski Hotel, Hamburg, Germany
Seatrade Tanker Industry When: 28 April 2010 Where: The Tanglin Club, Singapore
Reducing Ship Operating Costs When: 29–30 April 2010 Where: Bonhill House, London, UK
Baltic Future 2010 When: 4–6 May 2010 Where: Rostock, Germany
Navalia 2010 When: 18–20 May 2010 Where: Vigo, Spain; Instituto Ferial de Vigo Please visit our website www.shipgaz.com/ and find out about more events.
“Seafaring has become unattractive” Labour Shortages of skilled and qualified seafarers could have an immense impact on the global economy and are being exacerbated by the negative impact of crew criminalisation and the escalating problem of global piracy, warns Intermanager, the international trade association for the ship management industry.
“There is already a crisis in marine manpower supply with shortages estimated to continue for some years to come. The legislations in recent years concerning pollution and the restrictions on personal freedom as a result of the ’War on Terror’ have combined to make seafaring unattractive. Retention and fresh recruitment are directly affected. The
eventual impact on the global economy and the environment cannot be underestimated”, says Brian Martis, Chairman of Intermanager’s Criminalisation Committee, in a pressrelease. “To suppose that professional seafarers can be detained without trial is a disproportionate response not justified in maritime law and totally at odds with such responses in all other professions, where an unintentional incident is treated as such and does not lead to criminal sanctions”, said the InterManager Secretary General Elect Kuba Szymanski, at the Marine Environment Protection Committee meeting at the IMO in London some days later.
No 2 2010 Shipgaz 9
The editor of the Review section is Pierre Adolfsson, contact him at firstname.lastname@example.org
Photo: bent mikkelsen
Photo: floatel international
1. Erria A/S had a bad year in 2009 – the loss was DKK 155.5 million. 2. The Danish Prime Minister Lars Løkke Rasmussen was present at Maersk Line’s grand opening of the first direct container service between South America and Russia. 3. Keppel FELS delivered the semisubmersible accommodation rig, Floatel Superior, 43 days early to Floatel International. 4. Odense Steel Shipyard has delivered the third ro-ro in a series of six units built via license from Flensburger Schiffsbau Ges.
Photo: pär-henrik sjöström
Color Line to flag out?
ITF slams Norwegian shipping companies Labour 64 Norwegian flagged vessels have been re-flagged in the last two years, a majority of these vessels operate in the oil industry. A large majority of all bowloaders, which transport the oil from the Norwegian Continental Shelf to shore, have been re-flagged. The same goes for supply vessels. The development has raised concerns among unions.
At the lastest International Transport Workers’ Federation (ITF) meeting, the Norwegian Maritime Officers’ Association, the Norwegian Union of Marine Engineers and the Norwegian Seafarers’ Union called on the ITF and its affiliates to act on social dumping and widespread re-flagging on
the Norwegian Continental Shelf. They warned that Norwegian seafarers were being replaced by seafarers of other nationalities with wages and working conditions far below Norwegian norms. And the unions got support. ”It might seem inconceivable that a country such as Norway would permit second rate conditions, wages and job protection in this vital national industry – but bit by bit it’s already happening. Our Norwegian colleagues have sounded the alarm today, and our first move will be to call together the OTFG’s strategic campaign group to consider the issues”, says ITF offshore task force group chair Norrie McVicar.
Labour Color Line has threatened to flag out its vessels if the government halts the net salary model for seafarers. According to the shipping company, costs would shoot up without the model. If the net salary model is halted, the shipping company could end up in Denmark with the result that 1,300 Norwegian seafarers would be replaced by foreign seafarers, reports NTB. Recently the Minister of Trade and Industry Trond Giske received a report on the net salary model, which estimates that about 4,800 Norwegian seafarers would lose their jobs if it was closed down. The net salary model costs the Norwegian state NOK 3 billion a year, and the government has not given any guarantees for the tax regulations continuing to apply.
New orders placed at Chinese yards during the first two months of this year went up 770 per cent compared with the same period last year.
10 Shipgaz No 2 2010
Review Photo: U.S. Navy photo by Mass Communication Specialist 2nd Class Rebecca J. Moat
Photo: wikipedia commons
The reefer Kea, built in 1982, sank off Spain. The Snow Crystal (the above image) is also operated by Stockholm-based Holy House.
Holy House reefer sank shipwreck The reefer Kea, built in 1982 and operated by Stockholm-based Holy House, sank at around on March 30 about 200 nautical miles northwest of Cape Villano, Galicia. Two crew members are missing (for updated information, please visit our website shipgaz.com) the remaining 22 were rescued by Spanish and Portuguese search and rescue units.
The vessel was en route from St Petersburg to Colombia with a cargo of ammonium nitrate when it encountered severe weather conditions. At 9 pm on Monday, the vessel transmitted distress signals. ”According to the master, the crew tried to steer against the sea but the vessel was hit by three consecutive giant waves that caused a severe list and cargo shifting”, says Mats Ruhne, managing director of Holy House. Two vessels arrived on the scene a couple of hours after the distress signal, but could not assist in the rough weather. The vessels maintained communications with the Spanish search and rescue service as the Kea had lost power. The SAR units arrived after about ten hours and the crew was safely evacuated. Including the two missing seafarers, the crew consisted of two Croats, one Russian, one Ghanaian, one Latvian and 19 Filipinos. The KEA is P&I covered by Gard. The Holy House principal office is located in Stockholm, Sweden. Some 800 sailors from more than twenty nations earn their living on board the ships operated by Holy House Shipping, serving all traditional refrigerated trades.
One of the Republic of Korea Navy’s destroyers will try to free the hijacked VLCC Samho Dream.
Pirates hijacked VLCC with USD billion cargo piracy The US Maritime Administration, Marad,has issued advisories to US ships in the waters off the Horn of Africa and in the Indian Ocean. The warnings advise that pirate activity could increase between now and May, due to the end of the Northeast monsoon season and increased range of recent pirate attacks.
With the end of the monsoon season, calmer weather and seas create a greater opportunity for pirates to operate their skiffs further away from shore and larger base ships. This area of activity has expanded to more than 1,000 nautical miles off the Horn of Africa into the Indian Ocean. “These warnings must be taken seriously, as pirates continue to put our ships and crews at risk, even one year after the Maersk Alabama incident,” said David T Matsuda, Acting Maritime Administrator. “Mariners must be vigilant and prepare for potential attacks when in the region.” The Maersk Alabama hit the headlines in April last year, when the vessel was hijacked
by Somali pirates. It came to a struggle with the crew and the pirates took the Maersk Alabama’s captain Richard Phillips with them. He was freed a couple of days later in an action coordinated by the US Marine Corp. The Marshal Islands flagged VLCC Samho Dream, was hijacked by pirates approximately 600 nautical miles off the Somali coast in the early hours of 4 April and was taken to the Somali coast by pirates. The South Korean owned Samho Dream, 319,360 DWT, has a crew of 24 made up of five Koreans and 19 Filipinos. The cargo of two million barrels of crude oil, worth up to USD 170 million at current market prices, is owned by Valero Energy of San Antonio, Texas, and destined for a refinery on the Gulf of Mexico, the company told IHS Global Insight. The vessel is owned by Samho Shipping. A South Korean warship caught up with the VLCC. The destroyer arrived in waters near the tanker and would remain at a safe distance, according to the The South Korean foreign ministry.
»We strongly believe that a support and education effort ashore will help as well« Jan Fritz Hansen, the Danish Shipowners’ Association. The Danish Shipowners’ Association has decided to donate a substantial amount to Save the Children’s development projects for children in northern Somalia. The donation of DKK 1.5 million is for trying to solve the problems of piracy off the coast of Somalia from another angle.
No 2 2010 Shipgaz 11
Review Photo: wikipedia commons
Photo: sola kommune
Scandlines orders ferries
Rubrik Fjord Line will take delivery of two new ferries, and MS Bergensfjord will thereby get company.
Fjord Line orders ferry pair from Bergen newbuildings Fjord Line has signed a contract with Bergen Group to build two new cruise ferries – the value of the contract amounts to EUR 206 million. The vessels will be delivered in the spring and autumn of 2012.
The two sister ships will have a length of 170 metres. Each ship will have about 300 cabins, of which a large proportion will be suites, and have space for about 1,500 passengers. The cargo deck will have a capacity of up to 600 cars. The hulls of the two ferries will be built at the Polish shipyard Stocznia Gdansk. All work on outfitting and finishing the ships will be carried out at Bergen
Group Fosen. By adding two new vessels, Fjord Line will be able to offer daily departures on the service between Bergen, Stavanger and Hirtshals. ”We have for a long time been in the market for used tonnage as a supplement to MS Bergensfjord, but in our assessment we concluded that two new vessels would give us the best competitive edge on the service between Western Norway and Denmark”, says Ingvald Fardal, CEO of Fjord Line Group. “We are very delighted by Fjord Line’s choice. For both the Bergen Group and our 250 employees at Fosen, it’s a important recognition, says Bergen Group President Pål Engebretsen.
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newbuildings Scandlines A/G has signed an agreement with Volkswerft Stralsund in Mecklenborg-Vorpommeren to build two new ferries for the Gedser–Rostock service. The vessels, which have been in the pipeline for several years, will be the first newbuildings of the Scandlines fleet for 13 years.
The duo will be ready for service in the summer of 2012. The ferries will be larger than the present units, the Prins Joachim and the Kronprins Frederik, and have a capacity of 460 cars or 90 lorries (1,600 lane metres) and 1,500 passengers. The vessel has a length of 69 metres and a breadth of 24.8 metres. The draught is 5.5 metres. The vessels will be powered by diesel engines that can be converted to burn LNG in a later stage. The service speed will be 20.5 knots. The total investment for Scandlines is around DKK 1.7 billion, including rebuilding of both port facilities to accommodate the larger ferries. Scandlines was founded in 1998. The company’s headquarters is situated in Rostock, Germany.
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12 Shipgaz No 2 2010
Light at the end of the tunnel for shipyards Analysis 2009 saw far less deliveries from the world’s shipyards than most had expected. Shipowners were successful in negotiating delivery delays and others simply cancelled and took the cost of having lost the down payment. Despite cancellations, the world order book stood in March this year at some 7,500 vessels of almost 500 million dwt, or around 40 per cent of the existing world merchant fleet, and according to Clarkson Research, there are still more than 200 million dwt to be delivered this year. The shipbuilders’ anxiety however grew, as there were almost no new orders com-
dustry and Information Technology reports that the nation’s shipyards secured newbuilding orders of 5.7 million dwt during the year’s first two months. Compared to the 590,000 dwt ordered in the corresponding period 2009, the increase adds up to an astonishing 870 per cent.
»There are still more than 200 million dwt to be delivered this year.« ing in to fill future building slots. In 2009, only some 500+ new orders were reported worldwide, according to Clarkson. That is less than 10 per cent of the number of orders signed in 2007, and less than a fifth of the orders signed in 2008. Now shipowners seem to be returning to the shipyards again. China’s Ministry of In-
In South Korea the remaining capacity for 2011 is all but filled up and in China there are very few remaining berths. The major reason is of course newbuilding prices, and many owners are now feeling that the market has reached a realistic price floor. A VLCC that stood at USD 150 million to
New deliveries may cool down the rates offshore With the winter months behind, there has almost been a collective sigh of relief from supply shipowners around the North Sea. The spotmarket fleet operating in the North Sea has remained at about 70 vessels, but with as much as a third of the anchor handlers idle at any time. This has caused excessive waiting periods between jobs, but yet the market level for larger vessels was kept up at GBP 9,000– 10,000 for the better part of January and February. Platform vessels have been rather more in demand, with day rates at GBP 5,000–6,000 for medium-sized units and up to 10,000– 11,000 for large vessels. Further pressure on the PSV sector was defused by anchor hand lers willing to do cargo runs at moderate rates.
DOF-vessels operating in Brazil. With the listing, DOF will retain 51 per cent of the stock in what will become one of the biggest Brazilian-flag offshore companies. Swedish push for the Arctic. Capricorn Energy, a subsidiary of Cairn Energy plc in Edinburgh, has hired the semi Stena Don and the drillship Stena Forth for a seasonal drilling programme west of Greenland. To support the operation, three TransViking anchor-handlers have been fixed for 4 months from June/July, Balder and Vidar Viking, as well as the newbuilding Loke Viking from a Spanish yard. The third sister, Tor Viking, has been chartered to Shell for 2 years’ operation in Alaska, commencing in May. Dag Bakka jr
North Sea term charters and extensions: Charterer Vessel Type Operation Statoil Havila Mars ahts ext 12 months Statoil Havila Mercury ahts ext 12 months Apache Far Strider psv 18 months firm + opt, May 2010 BP N Stril Odin psv 3 yrs firm + 6 mths opt, Aug 2010 BP N Edda Frigg psv 6 weeks firm + 4 w opt, February EOG Resources Normand Skarven ahts ext 3 wells support Ensco 92 Statoil Siddis Skipper psv ext 12 months form until Jan 2012 Global term charters: Petrobras Sea Otter Petrobras Sea Marten Taqa Bratani Havila Fortress Woodside Lady Grace Woodside Far Stream Woodside Far Strait Woodside Far Spirit BHP Billiton Highland Star
ahts ahts psv psv ahts ahts psv psv
3 years firm, Brazil 3 years firm, Brazil 9 months firm + opt etx 12 months, May 2010, Australia ext 12 months + opt, Australia ext 4 months + opt, Australia 12 months + 2x1 years opt, Australia 4 months firm + opt, support Ocean Guardian, Falklands
Source: Shipgaz Bergen, MARCH, 2010
15 20 25 30 35 40 45 50 1
Brazil frenzy. Much of the focus has been on Brazil this winter, with Petrobras taking a good number of vessels on contracts. Lately also Deep Sea Supply has been able to place two smaller anchor-handlers for 3 years. DOF has recently announced plans to take its Sao Paulo subsidiary NorSkan Offshore public. In preparation for the listing, the NorSkan fleet of 13 vessels will be boosted to about 30 by transferring the Norwegian Source: Shipgaz Bergen, MARCH, 2010
The market suffered a set-back at the end of February, when anchor handler rates dropped to GBP 6,500 and also PSVs stumbled. The construction season will increase demand on the fleet, although the back-log of new deliveries may cool down the rates.
no 2 2010 Shipgaz 13
Market Review build in 2008 is now down to USD 97 million. The price tag for a handysize bulker was USD 38 million in 2007. In March this year it was just above USD 25 million, Clarkson reports. Prices however still have a way to go if they are to reach levels before the world economy took off in the beginning of this decade. The Clarkson newbuilding price index now stands at above 135, against below 110 in 2002.
Paris based Barry Rogliano Salles, BRS, is one of those claiming that negative factors out-weight positive. Among those are difficulties to obtain financing, fierce competition between shipyards and between the newbuilding market and the second-hand/ resale markets, and not least the tsunamilike wave of deliveries expected this year and next. All factors weighted in, BRS believes that prices could be cut a further 10–15 per cent.
with cApAcity filled for 2011 and an order book that stretches into 2012 should mean that the shipyards feel more confident and start to push pricing upwards, but according to some analysts, there is room for a further fall in newbuilding prices.
New pricing a challenge for bulk shipping wet & dry Iron ore producer producers Vale and BHP Billingto, have left the 40-year old system of an annually negotiated contract benchmark for the price of iron ore.
the two iron ore mining conglomerates, the biggest and third biggest in the world, have agreed on quarterly iron prices with Asian customers. The second biggest, Rio Tinto, is said to follow suit. Those three control about 75 per cent of the world iron ore seaborne trade and Vale and BHP also managed to achieve 80-100 per cent price increases. This has been met with concern by the European steel industry. Its body Eurofer has notified the EU Commission, claiming that there could be illicit coordination of prices that might threaten global recovery and the future of the European steel industry.
Rolf P Nilsson email@example.com
March 2010: Looking for signs of life shortseA dry BulK March month started areas as many ships returned with roadsalt off on a positive note driven by encouragfrom the Mediterranean only to add to the ing volumes of steel, coal and forest tonnage supply. With Easter holidays in products coming out of the Baltic region. mind trading became more desperate leadIce was quickly forming throughout whole ing to a softening in rates on main routes Baltic and Scandinavia making Charterers from Baltic to Continent and N.Spain in MGO IFO 180 800 eager to move. Rates were rapidly very particular. pushed upwards supported by a firm In the final weeks prior Easter trading is 700 demand for ice-classed tonnage especially more or less absent with many brokers takwith some really decent fixtures concluded ing holidays only knowing that they have 600 out of Gulf of Finland. Going rates for a lot of open positions to cover upon their 3,000–4,000 mt parcels of fertilizers from St return. While most hope for a post-Easter Petersburg to Lower Baltic peaked around rally we think that the market will need 500 EUR 30.00 p/mt with owners making T/C more time to recover as tonnage supply is equivalents of close to EUR 7,000 per day on relatively high compared to the volume 400 “lucky runs”. of goods currently being moved, but havAs from mid March sentiment seemed ing said that we are hopeful that April will 300 to shift to a more bearish trend as pressure show improved activity throughout Northwas coming off in the Baltic especially. The ern Europe. Week 200 number of positions increased 1 prompt 5 10 15 20in all 25 30 35 40 45geir jerstAd 50
Source: norBroKer aS, March, 2010
Source: BunKerWorLD/norBroKer aS, March, 2010
mgo rotterdAm cif prices
shipping will Be affected in several ways. One is that during often tense price negotiation between miners in Australia/Brazil and customers in Asia during December – April each year, Asian steel producers turn to India for their ore demand. This puts pressure on cape rates and boosts demand for panamaxes and supramaxes. With the annual agreement gone, this seasonal effect will vanish too.
Past 12 months. EUR/day 3,500
in the tAnKer mArKets, owners are putting some hope into a report from the US EIA, revising its forecast for the world’s liquid fuel consumption upwards by 1.2 million barrels per day this year. This will be welcome, but there is not much to indicate that it will be sufficient to offset the influx of new tankers this year, irrespective of the single-hull tanker scrapping deadline.
wet And dry BulK indices
Clean Tanker Index
Dirty Tanker Index
Baltic Dry Index
End Mar ’10
Source: BaLTic eXchange
Photo: pär-henrik sjöström
No 2 2010 Shipgaz 15
By Pär-Henrik Sjöström firstname.lastname@example.org
Fleet renewal has top priority Viking Line’s new CEO Mikael Backman thinks that the present concept in ferry traffic between Finland and Sweden is the right one. Now the company considers launching a newbuilding project. If you just have the money, now is definitively the right time to order newbuildings. The shipyards have a lot of surplus capacity and the indications for newbuilding prices are lower than for decades. Viking Line considers new vessels for the Turku–Åland–Stockholm route and the company most certainly also has the financial capacity to place an order.
Mikael Backman, who became the new CEO for Viking Line Abp on February 11, says that the timing would indeed be perfect and the company is in good shape financially. Still there is a lot to consider before making such a decision – the next generation of ferries must be both greener and more economical to operate than the present one. In addition, they should offer added value for the customer. Financing would most likely be arranged for a solid company like Viking
Line, but time is running out. Mikael Backman thinks that a decision has to be made before summer 2011. ”In any case we must order new vessels within the next ten years. With ageing vessels on our key route and the lowest shipyard prices in decades, we are seriously discussing if now is the right time to act. If it is, we have to make a decision before the newbuilding prices start to rise again, which may occur within a year and a half.”
»Viking Line is definitively going to prefer the local alternative« Last year Viking Line won the Finnish Quality Award 2009 in the Major Companies and Large Business Units category as well as the Travel Industry Award.
In Finland many put great hope in Viking Line to act as the saviour of the Finnish shipbuilding industry. STX Finland is in desperate need of new orders, especially for the Turku shipyard and the Finnish government has prepared a support package
to help the shipbuilding industry through the crisis. Mikael Backman would indeed prefer to build the next vessels in Turku, but in the end it is all about the price.
“If STX Finland is able to offer a newbuilding at the same price level as other shipyards, Viking Line is definitively going to prefer the local alternative. There are many advantages of placing the order in Finland. It is not only the shipyard that is situated close to us but also the network of suppliers and technical support.” He also thinks that placing the order at the Turku shipyard would give Viking Line a lot of positive publicity. “The Turku region is a most important market for us and a possible order would ensure employment for the shipyard in the same region. We would definitively benefit from this.” Today Viking Line has no ships on order after the recently cancelled
16 Shipgaz No 2 2010
Portrait Mikael Backman Photo: pär-henrik sjöström
The Isabella passing Kobbaklintar off Mariehamn. If newbuildings are ordered they will replace her and her sister Amorella on the Turku-service. Viking ADCC. The steel hull of the ADCC was finished to two thirds and the main engines were installed. Still it would have taken at least three months before the ship was ready for launching. “The main reason for cancelling the contract was that our refund guarantees were coming to an end. With the shipyard having financial problems and no decided delivery day, we were not willing to continue with the project,” Mikael Backman explains.
He stresses that it is no longer in question to order another newbuilding for the Mariehamn–Kapellskär route. “On the short route Mariehamn– Kapellskär it is more important to operate the right kind of tonnage than a newbuilding. A ferry is definitively needed on the route, but the average income from passenger tickets is
Mikael Backman Born in Karis, Finland, 1966. Master of Science (Computer Science) at Helsinki University of Technology. Former employments: 1993–1995 Silja Line (System Manager and Quality Manager), 1995–2008 Royal Caribbean Cruise Line (various appointments of which the most recent was VP, Marine Operations).
extremely low. Still, the customers want a better product at a lower price, which may be an impossible equation.”
Today Mikael Backman regards Turku–Åland–Stockholm as the main route of Viking Line. Like on Viking Line’s all other routes calling Åland, the income from tax-free sales plays a decisive role. As long as the ferries call Åland Mikael Backman does not see any imminent threat to the tax-free trade, as this right is based on the Åland protocol in the Treaty of Accession, when Finland became a member of the European Union. “Our current traffic concept is based upon large passenger volumes due to attractive ticket prices. The bulk of our income is therefore generated from sales on board. This has been the case during the last 50 years and today I cannot see any reason why
this would not be the model also in the future.” Regarding ticket pricing and the distribution of revenues from the operations, the traffic concept for the new vessels would therefore be in line with the concept of today. “Our product is well proven and popular among the customers; and it is made possible by tax-free sales on board. We will continue to focus on the combination of ferry services, cruise and freight also in the future. I think that as long as there exists any seaborne travel at all between Finland and Sweden, the passengers will most likely choose vessels offering these options.”
Still, Mikael Backman thinks that the market will demand a product that gets even closer to a genuine cruise experience, including more onboard activities for the passengers. Although the concept on the new ves-
No 2 2010 Shipgaz 17
Portrait Photo: pär-henrik sjöström
»All ferries sailing between Finland and Sweden are quite traditional« sels will be partially based on tradition, it will be a new one, he states. “All ferries sailing between Finland and Sweden today are quite traditional. They are not particularly energy saving either. Our possible future newbuildings will be much more energy efficient, and their size will be determined by market demand. The vessels will no doubt be larger than our present ferries. They will also have a different propulsion system, there will be more entertainment on board and the exterior will be new. It will take some time to design these vessels as they will have so many new features.”
Of Viking Line’s routes between Finland, Åland and Sweden, the Turku service is the only one enabling two sailings in each direction a day. The utilisation of the fleet is high, with a total of four daily crossings with two vessels. Mikael Backman thinks that an important factor for the everlasting success of the route is the fact that it is the shortest route between Stockholm and any larger city in Finland. He is assured that the importance of maintaining this high frequency traffic between Finland and Sweden is widely realised. More stringent speed limits in the archipelago would form a potential threat to this. “If there were more speed limits in the archipelago, it would no longer be possible to maintain two sailings a day for each vessel on the route. On the other hand I think that the authorities today focus more on the effects on the environment. It is possible to further reduce the effects of, for example, the swell with an even better shape of the underwater hull.” “As new vessels will have less impact on the environment than the existing ones, there will quite simply not be any need for further reductions in speed. Our goal is to prove to the community that we are environment friendly enough to continue operating such an efficient transport system. Compared to other means
Mikael Backman has a long experience from cruise shipping. of transport, shipment by sea is in a class of its own, when it comes to reducing the environmental impact,” Mikael Backman asserts.
Mikael Backman thinks that it will be possible to apply a slightly higher pricing than today on the newbuildings. However, he will not change the fundamental principles of Viking Line, although ticket prices may be a few euros higher than today. “I underline that we will continue to offer our customers the best value for money and continue to be the most attractive alternative also when it comes to pricing. We hope that we will be able to offer a better product that our customers are willing to pay a little bit more for, but we talk about a difference of less than ten euro, compared to today.” The idea is to offer more activities for the passengers, of which some will not be included in the ticket,
the background The background in cruise shipping has been a great advantage for Mikael Backman in his new job, as he knows shipping and its procedures. He is therefore able to focus directly on strategy issues.
such as a spa. In addition, Mikael Backman thinks that there are lots of customers today that would want more peace and quiet on board. “We are planning to introduce special cabins and public areas, dedicated to those who are willing to pay a little bit more. Another challenge will be to ensure that the customers of today also feel comfortable with the new vessels. We must continue to offer afternoon dances and bingo, but a new, active generation of retired people must be able to find enough on board to keep them active too. It is important to note that Viking Line also in the future will be the line for all passenger segments.”
Additional activities on board does not necessary mean that the new vessels will be considerably larger than the ferries of today. “The idea is to utilize all public areas on board 24 hours a day and
18 Shipgaz No 2 2010
Portrait Mikael Backman Photo: pär-henrik sjöström
Viking Line has continuously upgraded the public areas in their older vessels. more efficiently than today. After all, we are operating on relatively short routes compared to genuine cruise traffic and primarily our business is driven by large cabin and car deck capacity.”
Although talking a lot about cruise passengers and onboard activities, Mikael Backman underlines that Viking Line will continue to be primarily a ferry company. “Freight and route travellers are our most important customers and the
Viking Line The fleet consists of seven carand passenger ferries operating on five routes. The roots of the traffic dates back to 1959, when the former channel ferry Viking was put into service.
whole system is based on that fact. The new vessels will have more space for freight and cars. The cabins for car borne travellers will be situated closer to the car decks. We aim at creating a better product also for those using the ship for transport or work. The goal is not to change our brand image, which is very strong today, combining quality with attractive prices.”
Mikael Backman does not even try to hide how enthusiastic he is about his new job.
“Viking Line shows a good result despite the economic downturn and we have recently won a quality price in Finland.” “Our employees are motivated and skilful and our customers value us more than any other ferry company. My predecessor Nils-Erik Eklund left a company in excellent condition. Now I will continue in the same way, combining his legacy with my own experience from the international cruise market to create an even better product.”
Expansion – but not new routes Mikael Backman’s ambition is to expand the activities of Viking Line to new markets. However, he is convinced that this is possible without physically starting new ferry services.
“The Nordic countries form a strongly growing destination for tourists from all over the world. The question is how Viking Line can benefit from this develop-
ment and reach further out in the world.” “But I stress that the destination will not be Viking Line itself, but the northern part of Europe. I think that new products have to be based upon the existing liner network and combinations of them.” According to Mikael Backman the future development of the different routes operated by Viking Line is to a great extent
dependent on competition and the implementation of environmental rules.
“When these issues are addressed and possible investments in new vessels are carried through on the Turku route, we may look at further investments in new tonnage.” Mikael Backman says that the tonnage renewal would be completed with the Helsinki–Marie-
hamn–Stockholm route. “Any other needs for investments in newbuilding are not in question for a long time.” “We have a new vessel on the Helsinki–Tallinn service and we have our largest and best ship in cruise traffic from Stockholm to Mariehamn. Yet another question mark is the future development of cruises on the Gulf of Finland to Russia”, he says.
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20 Shipgaz No 2 2010
Report Norwegian shipping tax
By Dag Bakka jr, email@example.com
Photo: Farstad shipping
Farstad Shipping is one of the companies that brought the government to court.
Government still vying for (less) shipping tax
After the Norwegian Supreme Court ruled against the transition tax on shipping operations, the government came up with a new criticised bill. Just as most Norwegians were heading off for their Easter break, the Minister of finance, Sigbjørn Johnsen, made a surprising move on the shipping tax issue on Friday, March 26. The Government’s tax bill for shipping revenue under the previous tax regime amounting to NOK 19.7 billion (EUR 2.45 billion) had been revoked by a Supreme Court ruling on February 12. This sent a shiver of relief throughout the shipping community. Champagne bottles were unscrewed, cautiously.
The ruling was also a political blow of significance to the Government. The Minister of trade and industry, Trond Giske (Labour), main-
tained that there was clearly a tax bill here; the question was the size and how to pay it. The Norwegian Shipowners’ Association (NSA) was discussing a more acceptable settlement with high-ranking civil servants. Sigbjørn Johnsen’s recent proposal maintained the principle of taxation, but offered the industry two alternatives: A) To pay 6.7 per cent of the latent tax liabilities, amounting to some NOK 4 million – a fifth of the original claim. Or B) To remain under the principles of the 1996 regime with the tax credit and face taxation on dividend and full tax settlement on
»The shipping tax issue has been fraught with controversy and drama« In June 2008, the tax-scheme was brought up in a lower court,
termination at a future date. Reaction has not been very enthusiastic from NSA and conservative MPs, and this leaves the issue till after Easter.
The shipping tax issue has been fraught with controversy and drama ever since the tonnage tax scheme was carried in 1996 by a slim majority of non-socialist parties. The main point was exemption of tax on ship operation and ownership, as long as the profit was kept within the company. Dividend would be subject to taxation on the company as well as the shareholder, and a company would face taxation once it left the scheme. With a new favourable shipping tax system introduced in 2007 a tran-
No 2 2010 Shipgaz 21
Norwegian shipping tax
Report Photo: gcardinal/flickr.com
The government consisting of the Labour Party, the Socialist Left Party and the Centre Party, holds the majority in the parliament (Stortinget). sition scheme was needed. Should the full tax bill be recovered, or a softer bridge to the new system?
Opinion was divided within the government; the Socialist party went for the full tax packet, whereas the Prime minister and a good part of Labour and the Centre Party favoured a moderate transition. A leak from the Ministry of finance to the tabloid press at the end of August 2007, to the effect that “the super-rich” were to be granted a tax amnesty, took the political establishment by surprise. Such an outcome would be untenable to the Socialist party, which in the end had its way in the Cabinet. The ensuing tax bill amounted to NOK 19.7 billion, as passed by the Stortinget in November 2007, to be paid
over ten years. At a later date the pill was sweetened by allowing 1/3 of the bill to be used for emission-reductions. The full extent of the tax bill had taken the otherwise alert and networking NSA by surprise. It turned out that NSA has decided to front the matter on its own, rather than seeking the support and consensus of the Maritime Forum, where some major trade unions were represented.
As a consequence of poor political groundwork, the managing director of NSA, Marianne Lie, was asked to leave. Having earned a reputation for tax-sulking, the NSA decided that the tax scheme was now a “non-case”. Three of the shipowning members, however, took the Government to court. They had never broken the
»As a consequence of poor political groundwork, the managing director of NSA, Marianne Lie, was asked to leave« Marianne Lie retired from the position as managing director of the Norwegian Shipowners’ Association (NSA) as of February 1, 2008.
terms of the 1996 tax scheme; they had paid their taxes year on year. The proceeds remained within the companies. How could the transition rules of 2007 come to bear on previous tax bills? The transition tax must clearly be in breach of the Constitutional §97, prohibiting retroactive legislation? The cases brought up by BW Gas, Farstad Shipping and Bergshav Management were heard at a lower court
22 Shipgaz No 2 2010
Report Norwegian shipping tax Photo: bw gas
»After all, a tax saving of NOK 16 billion also makes for a bottle of champagne« level in June 2008, when the plaintiffs were supported in two cases and the Government acquitted in the third. An appeal court allowed the cases to be brought directly before the Supreme Court in the interest of principle. The case ended with the ruling on February 12, in which the plaintiffs were found justified. The ruling, however, was with the narrowest of majority; six of the eleven judges found that the transition tax was in breach of §97 and its curb on retroactive legislation.
The majority held that the transition tax represented a pronounced revision of previous tax assessments. Should such a revision be justified, strong public interest would be at stake; something – the majority felt – was not the case. “We have a judicial void here”, says Frederik Zimmer, professor of tax law at the University of Oslo, commenting on Sigbjørn Johnsen’s new proposal. “What the government does is to offer a transition scheme in line with the 1996 regime.”
BW Gas is a global provider of gas marine transportation services. In 2007 the shipping industry was granted a new set of competitive conditions, including taxation, carried by broad political backing.
The transition tax claim of NOK 19.7 was a typical Socialist party idea of “taxing the rich”, but incongruous with the old as well as the new shipping policies. Sigbjørn Johnsen’s proposal is a strong denunciation of his Socialist
predecessor, but it also leaves the NSA with a problem to tackle: To present the industry as a contributor to Norway’s economy and welfare, to maintain a positive public image and above all refrain from tax-sulking. In view of the current shipping policy and its support, some sort of concession will have to be paid. After all, a tax saving of NOK 16 billion also makes for a bottle of champagne.
“We and others will be punished” Both owners and NSA, the Norwegian Shipowners’ Association, have responded negatively to Sigbjørn Johnsen’s recent proposal.
“The government proposal is a blow for shipping companies that have chosen to stay and invest in Norway. These are linchpins to value creation, employment and the development of trade and industry along the Norwegian coast. This is not a proposal based on voluntariness, as the government argues”, says Sturla Henriksen, Managing Director of NSA and continues: “The new tax regime will be
closed for these owners until they have settled their accounts deriving from the previous regime, and the government will decide to what price. The government supports a regulation they opposed in 2007. The companies are excluded from a regime, which the government says is crucial for the competitiveness among Norwegian shipping companies. At the same time the government tightens the old regime, and thereby puts a burden on companies within the system. “The Supreme Court ruled that owners shall pay the tax when they voluntarily leave the old regime. But the govern-
Karl-Johan Bakken, CEO of Farstad, and Sturla Henriksen, MD of NSA. ment’s proposal is not based on voluntariness. By admitting this proposal new concerns are raised regarding the stability and predictiveness of the Norwegian regulations.”
Karl-Johan Bakken, CEO of Farstad Shipping, is fuming: “Companies joining the sys-
tem will get everything, while we and others that have been incorporated for the whole time will be punished. I’m upset and very provoked. If the government believes the owners are going to agree on a voluntary regime, they are misjudging the situation”, he says to Sunnmørsposten.
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24 Shipgaz no 7 2009
By Rolf P Nilsson, email@example.com
Fiasco, failure, disappointment IMO: Rolf P Nilsson Rolf P Nilsson, Editor-in-Chief of Shipgaz, points the spotlight at IMO in each issue. Check this column to get the latest updates on what’s up in the IMO chambers.
fiasco, a failure, a disappointment. The first reactions from environmental groups and other parties over the outcome of IMO’s Marine Environment Protection Committee 60th session were not exactly overwhelming, to say the least, and in a way they are of course right. The main concrete results of the meeting became what you can expect in a political arena that is facing a controversial issue and has to find a consensus-based solution to a problem; direct it to endless discussions and investigations. In line with this, the committee agreed to establish an expert group to carry the question of a market based instrument further and an inter-sessional working group to continue the development of an energy efficiency design index.
For people hoping for a clear and final decision on how shipping and maritime transport can reduce its emissions of greenhouse gases, the session week was not a success. But disappointment is a reaction when something has not met your expectations, and you could argue that with a
»There is a clear gap between old shipping nations in the west and upcoming nations« MEPC MEPC is the IMO Marine Environment Protection Committee, which gathers twice a year. The next session, MEPC 61, is scheduled for September 27–October 1, 2010.
realistic approach, the result was actually somewhat positive. You could wish for more, but with the world looking as it does today, you couldn’t expect more.
This is a complex question technically and by all means not less difficult diplomacy-wise. Although everyone seems to accept that emission reductions are necessary, the meeting showed in all respects that there is a clear gap between old shipping nations in the west and upcoming nations. To complicate things even further the number of submissions from members was so vast that there was no chance for the committee to consider them all during the week-long meeting. New proposals also imply that what was once seen as three well defined paths to follow to an overall solution; one for ship design, on for operational performance and one for
a market based incentive instrument, seem to a certain extent to melt together. One topic on the MEPC agenda was the market based instrument, an emissions trading scheme or some kind of levy on bunker fuels. On this issue, the message to the traditional shipping nations from developing fellow members of the IMO was clear: ”Don’t stick your solutions down our throat, you have the responsibility for the problem and you have to pay.”
This is of course a position that has its merits. It doesn’t lead any further to a solution, but the attitude of developing nations could be seen as a bargaining strategy. This is tricky business for IMO. The Copenhagen summit failed to give any guidance to the CBDR issue. The ”Common But Differentiated Responsibilities” is a widely accepted principle meaning that the industrialised world has to pay more than the developing part for any actions to reduce greenhouse gas emissions, but applying this to shipping could be disastrous for the old shipping nations, while the environmental benefit would be marginal at best. An overwhelming majority of all ships in the world’s merchant fleet already fly the flags of developing nations, and if the outcome will be a larger portion of the cost burden distributed to vessels registered in the traditional shipping nations, the consequence will certainly be a massive out-flagging. This gives the developing
Market based instruments – the four main tracks More than 10 proposals on market-based instruments were submitted to the MEPC 60. Most were variations on the same theme, but today there are four main tracks:
1. A bunker levy/contribution fund. This proposal was originally submitted by Denmark. The thought is that a fee is added on bunker fuel sales. The proceeds will be handled by a fund and used for projects aiming at green-
house gas emission cuts in the developing world. The advocates of this proposal are doing their utmost to not say what it actually is – a tax. An international tax is a big no-no for many national financial ministries that see the right to taxation as a solely national issue and fundamental to a nation’s independence.
2. A global emission rights trading scheme. This is a way for those with extensive emissions to
pay others with lesser emissions for the right to emit. The Swedish Shipowners’ Association has been the pioneer behind a scheme where shipping is integrated in a market place with the land-based industry, and the idea has got a positive response within the EU Commission. The thought is that for instance an energy intensive industry that would face huge investments for emission cutting could pay less to a shipowner that with a smaller investment
would reach the same result. Land based industry has come far in emission reduction, and to get even further, investments will be very high for a limited result. Shipping on the other hand has to date done little and therefore has a significantly larger potential for substantial emission cuts at a lower investment level.
3. Do nothing. This track has so far a limited number of supporters, but one of those is Greece,
No 7 2009 Shipgaz 25
Spotlight Photo: Jörgen Språng
nations a strong hand in the negotiations, and you can add that IMO also is the only UN agency relying most on developing nations for its financing.
All in all, IMO is probably the
»Don’t stick your solutions down our throat, you have the responsibility for the problem and you have to pay«
arena where those countries have the biggest opportunity to put pressure on the developed countries for concessions, and during the latest MEPC meeting developing countries held on
to the demand that CBDR should be honoured also for shipping. At the previous session, the MEPC
the world’s most important shipping nation. Their motives for this ”don’t rock the boat” strategy is that a market-based instrument is unnecessary, doesn’t fit in the way shipping markets work and could actually punish developing countries. Today, bunker oil prices are so high, and there is no reason to believe that they will decrease substantially in the future, that there is not one shipowner in the world who doesn’t already
do everything to reduce fuel consumption. This is true at least as long as the shipowner controls the issue. The way shipping works, in many charter cases it is the charterer that foots the fuel bill and/ or decides on speed, leaving the shipowner without influence over emission levels. Substantially higher sea transportation costs could also change world trade patterns, with developing nations as los-
59, a time table was established for the development of a market based instrument. This included that proposals should be submitted to the MEPC 60 and the timetable seems to hold, at least for now. The group of experts has a substantial amount of submissions to work its way through, before presenting a proposal. The question is also what the group’s work will be worth in the
ers, the ”no action needed” lobby claims. There is a definite risk that increased transport costs will lead to a shift of production capacity closer to the end market, and this will be at the expense of poor nations far away.
4. An emission rights trading scheme based on the design index. This proposal has been submitted by USA (that incidentally yet has to sign the Kyoto protocol) and it has spurred
some confusion with others as it is blending what was initially two different paths; a trading scheme and a ship design issue. This is actually an intra- shipping trading scheme, where owners of existing ships that face huge investment costs to decrease emissions due to their vessel’s design could pay other owners of existing more energy efficient vessels to shoulder the same reductions but at a lesser cost.
26 Shipgaz No 7 2009
Spotlight IMO Photo: Jörgen Språng
end. Rather than being a technical issue, this has become a battle between principles, the UN CBDR principle against the IMO principle of an even level playing field, where all measures should be divided equally among all. Now is therefore the time to be creative and to find an alternative that gives emerging nations an acceptable alternative, which at the same time does not trigger a vessel drain from ship registries in the old world.
After the Copenhagen failure, IMO has taken the lead in the search for world-wide concrete actions to tackle the issue. While being the unifying body for a truly international activity, IMO has felt the pressure from various parts of the world. If it do not deliver regional solutions will be pressed ahead, irrespective of the consequences, and everyone knows that regional solutions for international shipping has never rendered any positive results. Should however IMO succeed, it could be the spearhead needed for an overall, unanimous solution on global greenhouse emission reductions. If 172 members, 169 nations and three associated members, of the IMO find
COP16 COP16 will be the sixteenth Conference of the Parties (COP) under the United Nations Framework Convention on Climate Change (UNFCCC). The conference will be held in Mexico between November 29 and December 10, 2010.
an acceptable solution for shipping, it might be easier to solve the rest.
Also the question of an Energy Efficiency Design Index became a controversial issue, not between different parts of the world but between sectors within the shipping industry. The EEDI index originally submitted by Denmark has been acknowledged as suitable for large ocean-going vessels, but sectors such as short sea ro-ro services and cruise shipping claim that it does not take into account the conditions for those vessels with many port calls and short sea voyages with intensive ship manoeuvring. The proposal of a working group was therefore met by satisfaction from these parts of the shipping industry. Shipgaz sources however stress that it was just more time that was needed, and they feel confident that a sustainable and non-controversial solution will be presented in time for the next MEPC session. In the shadow of the greenhouse gas topic, several other issues were handled during the MEPC meeting. A North American ECA, Emission Control Area, limiting SOx, NOx and particulate matter emissions was adopt-
ed as well as a heavy grade bunker oil emission limitation for the Antarctic from August 1, 2011. A resolution was adopted concerning ballast water treatment equipment being fitted to new ships and in which IMO also urges member states to ratify the convention. This will enter into force 12 months after formally having been signed by at least 30 member states with at least 35 per cent of the world fleet. Today ratification stands at 22 nations with 22.65 per cent of the fleet.
The development of guidelines for re-cycling of ships was also carried on and the MEPC approved 1 May next year as the date for new and more stringent waste garbage rules to be applied in the Caribbean. In addition, the committee approved replacements of Marpol regulations for preventing pollution of harmful substances in packaged form to be adopted at the next MEPC meeting. A total ban of black/grey water discharges in the Baltic Sea, proposed by Helcom, was also considered. No decision was however taken as there are still several parameters that have to be developed further.
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28 Shipgaz No 2 2010
By Bent Mikkelsen firstname.lastname@example.org
Newcomer Helix Producer I
Photo: NTD Offshore
From train ferry to offshore vessel In 2000 Erik Hays Thøgersen bought a laid-up train ferry. Ten years and USD 120 million later, the ship is now a high-tech offshore vessel. In March 2010 the highly sophisticated offshore vessel Helix Producer I sailed from Ingleside, Texas, to its first permanent position some 85 nautical miles off the coast of Louisiana. There the vessel will be commencing work at four of the wells at the Phoenix oil field. This achievement was the result of almost a decade of work by the staff at NTD Offshore A/S in Ringkøbing, Denmark and the owning company of the vessel K/S Kommandor Rømø, owned by Erik Hays Thøgersen. He purchased the vessel in 2000 as a laid up diesel-electric driven train ferry with the strong belief that it could be a valuable asset in the offshore industry. The transformation into an offshore vessel is the outcome of at least
June 1, 1986 Delivered as the Karl Carstens for Deutsche Bahn for the Rødby–Puttgarden run.
»The ship could be used to take oil from the so-called sunset field anywhere in the world« A sunset field is an oil field which is about to be emptied, but still can produce a smaller amount of oil.
May 10, 1986 Arrived Hamburg for presentation.
twelve different projects over the years and four and half years of physical rebuild of the original ferry, which was built in 1985.
The Helix Producer I is believed to be the world’s first Dynamic Positioned FPO (Floating Production Offloading) unit and is now placed at in a position in the Gulf of Mexico, working on the Phoenix-field where the water depth is around 2,000 feet, or just a little more than 600 metres. The whole idea of using a flexible and movable unit to undertake the production of oil and gas from four wells in the seabed came in the after-
December 1, 1998 Withdrawn from service and laid up.
math of the hurricane Katrina, which swept over the Gulf of Mexico in August 2005. The violent hurricane damaged and destroyed a large number of production platforms on jackets in the area, leaving the oil industry with enormous structural damage and great costs, as production was stopped until new platforms were produced. The Texan company Helix Energy Solutions Group Inc came up with the idea of using a self-propelled unit with a Dynamic Positioning system, since it would be impossible to anchor anything at a water depth of 609 metres. The idea was born in Texas, where at that time K/S Kommandor Rømø and Erik Hays Thøgersen were working on a project with an Australian offshore operator to convert the ferry
September 12, 2000 Sold to Kommandor Rømø K/S.
September 21, 2000 Arrived Nakskov in tow for laying up.
No 2 2010 Shipgaz 29
Helix Producer I
Newcomer Photo: bent mikkelsen
The Karl, ex Karl Carstens, was lying idle at Nakskov for nearly six years with no external maintenance and looked more and more like a candidate for recycling.
Karl Carstens, renamed the Karl, to an offshore construction vessel fitted with a large aft deck capable of taking constructions of up to 12,000 tons and sailing them to a position at sea to offload. In fact, the negotiations had developed so much that the ferry was towed from its lay-up berth at Nak skov, Denmark, to Rijeka, Croatia, to be rebuilt by the Victor Lenac Shipyard. “We ended up closing a deal with the American company”, says Erik Hays Thøgersen. “They were simply keener on signing up for it than the Australian we also worked with.”
K/S Kommandor Rømø had been the owner of the ferry for six years, during which time it was laid up at Nakskov without any kind of maintenance on the outside of the hull and superstructure. The inside and especially the engine rooms were, however, fully maintained and kept under close observation, by a crew of two most of the time.
May 5, 2006 Left Nakskov in tow for Rijeka.
“I must admit it wasn’t a pretty sight lying at Nakskov, but it would have been just a waste of money to use any paint on the hull as we knew a lot of it would have to be removed anyway some day”, says Erik Hays Thøgersen.
The conversion turned out to be a huge job for the Victor Lenac Shipyard, which in 1999 did a major conversion of Hays Ship’s Kommandor 3000. In the meantime the shipyard had filed for a chapter eleven protection, but was able to take on new jobs with sufficient guarantees and a contract was signed with the shipyard. “We had to be prepared for closure and bankruptcy, so we had the tiresome work of marking all the components, old and news, inside the gate of the shipyard with the ship’s name”, explains Ole Pedersen, CEO of NTD Offshore. “That is why we chose to use the name Karl as the project name during this stage. It was much easier to paint on every item instead
June 6, 2006 Arrived at Rijeka for rebuild.
September 3, 2008 Left Rijeka for Syros.
start in 1980 Erik Hays Thøgersen started his business in offshore in 1980, when he purchased a Norwegian ferry and renamed it Kommandør Surveyor. He is still part owner in the company Hays Ships Ltd in Aberdeen running five survey vessels.
April 10, 2009 Left Syros for Ingleside, Texas.
of our own working name, Kommandor 5000, or Helix Producer I”, says Ole Pedersen. On arrival at Rijeka in Croatia, a lot of steel was cut off the ship first of all. A lot of the old ship was stripped down to bare steel, with only the engine rooms kept intact in the new version. Another major steel job also was to enlarge the ship’s breadth from 17.7 metres to 29.0 metres by building huge sponsons on each side of the original hull. “We had to enlarge the breadth in order to provide enough deadweight on the ship to carry the process plant”, says Ole Pedersen. “The sponsons were in one of our projects laid out as storage tanks for oil, but this wasn’t needed for the Helix contract. So these tanks are presently void spaces, but on future jobs the whole ship could be used to take oil from the so-called sunset field anywhere in the world”, says Ole Pedersen. A sunset field is an oil field which is about to be emptied, but still can
May 9, 2009 Arrived at Ingleside.
March 10, 2010 Left Ingleside for offshore field.
30 Shipgaz No 2 2010
Newcomer Helix Producer I Photo: bent mikkelsen
»It is a fantastic ship, but it has taken some years of my life, I am sure« produce a smaller amount of oil. Often the amount of oil is too small to have a normal process unit around it, but due to the flexibility of the Helix Producer I, it can move to a certain field, take up the oil and transfer it to another field. When the ship is offloaded it can make another round to these marginal fields.
At present the Helix Producer I will be stationed at four wells on only one field. On this field the vessel will be connected directly to the subsea wellheads and take up the oil and gas to the process plant on the deck. After processing – mainly separating oil and gas into two different substances – the two commodities will be sent to shore via huge pipelines. Whenever a hurricane builds up and turns out to be a threat to the Helix Producer I, it can disconnect all pipelines within minutes and sail away to a safe harbour or around the hurricane. Then the vessel can sail back, connect up again and continue production. “The conversion has also been a huge job for NTD Offshore’s core staff of eight persons”, says Ole Pedersen. “But we have managed to work through it and co-operated with a number of consultants in Denmark to create this very unique vessel.”
The engine plant is the original, consisting of six MaK-engines providing around 12,000 kW. This power supply is used for propulsion and station–keeping, using seven thrusters all connected by a power management system designed by NTD Offshore. The surveillance system connects 11,500 measuring points all over the ship, giving data of almost anything from valves to every corner of the vessel. The whole electrical system, including an upgrading of the main switchboard and adjustment of the generators connected to the engine, was designed and laid out by NTD Offshore along with concept design and the specification used for the whole conversion of the ship. The vessel has also been fitted with a complete new accommodation
Ole Pedersen, CEO of NTD Offshore, which also is part of Erik Hays Thøgersen business group.
capacity The total weight of the process plant is around 4,000 tons. When the ship is in full production it will be capable of exporting around 45,000 barrels of oil per day.
house. A Part of the old superstructure has been used to accommodate some of the crew, but mainly used for public facilities. The old restaurant area is used for recreation rooms for the crew, who benefit from the original large windows, giving them a very nice view of the ocean.
In the present version, the Helix Producer I can accommodate 80 persons in single cabins with private facilities. Originally the layout was for 120 persons, but 80 persons were sufficient to run the ship and the process plant. The crew changes will take place by using the helicopter landing pad on the forepart of the ship. Part of the new strategy for the oil field under hurricane threat is also to evacuate both production facilities and personnel at the same time. “The German state-owned train ferry Karl Carstens was built to the same high standards as a regular warship, even though it was a civilian ferry”, says Ole Pedersen. “Everything in the engine room was double and was really in excellent condition when it was purchased.” The design of the Helix Producer I was approved by Lloyd’s Register, which gave the vessel a kind of newbuilding date because of the huge rebuild, making it capable of working
in offshore. Often the age of a certain ship is vital in offshore, where older ships are not allowed.
The contract between K/S Kommandor Rømø and Helix Energy Solutions Group was a joint venture. The two parties formed a special company called Kommandor LCC, owning 50 per cent each of the rebuilt vessel. From this owner company the vessel is on time charter to Helix Energy Solutions, earning a day rate to the owner company. The vessel entered this time charter on delivery from Croatia in April 2009, when the Helix Producer I sailed from the Mediterranean for Ingleside on the outskirts of Corpus Christi in Texas, for the installation of the process plant, which was produced on site and could be installed on the ship without any more transport than being lifted on board by a crane. During the building period the joint venture has changed so that Helix Energy Solution group has taken a large stake in the project, which ended up with a price tag of around USD 120 million. “It is a fantastic ship, but it has taken some years of my life, I am sure”, says Ole Pedersen, CEO of NTD Offshore.
No 2 2010 Shipgaz 31
Helix Producer I
Newcomer Photo: ntd offshore
1. The Karl with most of the superstructure cut off and a new bridge house being built up, while the sponsons are prepared ashore. 2. Originally built as a train ferry for the Puttgarden–Rødby run. 3. The original bridge. 4. The vessel breadth being enlarged from 17 to 29 metres.
Helix producer i Owner Kommandor LCC (Helix Energy Solutions Group and K/S Kommandor Rømø) IMO ........................................................... 8420115 Flag ........................................................... Bahamas Port of Registry . ...................................... Nassau Class ..............................................Lloyds + 100A1
Builder ........ Howaldtswerke-Deutsche Werft, Kiel # 211 Length o a....................................................161.5 m Length b p...................................................149.3 m Breadth . ................... 29.0 m (originally 17.7 m) Draught........................................................... 7.7 m
GT . ............................................................... 17,757 t Engine plant............. 6 x MaK type 12M282AK developing 2,379 kW each to a total of 14,274 kW. Service speed ...................................... 11.2 knots
Photo: ntd offshore
Photo: ntd offshore
Photo: ntd offshore
32 Shipgaz No 2 2010
Newcomer Helix Producer I
No 2 2010 Shipgaz 33
HMC00D0107, Anz. SMM Besucher, The Skandinavian Shipping Gazette; ET 160410
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Helix Producer I
Gdansk on the rise The old Hansa town of Gdansk vows to reemerge as a key player in the Baltic Sea. The first steps are already taken – recently Maersk Line incorporated the port in its Asia–Europe service. “The direct calls by Maersk started a new era for us”, says the CEO of DCT Gdansk SA. TEXT & PHOTO: PIERRE ADOLFSSON
The winter’s firm grasp of Gdansk is gradually easing. It is a matter of days before people gather at the open-air cafés along the historic main street Ulica Dluga. The street truly captures the city’s history; from the old town hall that was erected in the Middle Ages to the Neptune fountain built to prove the never ceasing bond between the city and the ocean. he city of Gdansk joined the Hanseatic League in the 14th century. The city became one of the major members of the economic alliance of trading cities in the Prussia, Livonia and Sweden Circle. The maritime industry was vital for the city’s survival and growth. Throughout its long history, Gdansk/Danzig faced various periods of rule from different states before 1945, but in line with the decisions made by the Allies at the Yalta and Potsdam conferences, the city became part of Poland. The city suffered large-scale destruction during World War II, but was rebuilt during the 1950s and 1960s. Boosted by heavy investment in the development of its port and three major shipyards for Soviet ambitions in the Baltic region, Gdansk became the major shipping and industrial centre of the Communist People’s Republic of Poland. However, the port’s importance for overall trade in the Baltic Sea has been limited – until now. In October 2007 the Deepwater Container Terminal Gdansk, DCT Gdansk SA, became fully operational and is the only Polish container terminal developed for deep-sea container vessels with its quay depth of 16.5 metres. The new terminal was built to address the ongoing containerization of goods and compete with the container distribution system in the North Sea.
“We aim to regain Polish containerized cargo going by train from German continental ports to Polish cities and consumers. Furthermore, we want to possess the role of a gateway for containers bound for national and international trade. Put it this way, we simply want to be a Baltic Sea hub”, says Danuta Bilat, Chief Sales and Marketing Officer. In 2008 the Port of Gdansk posted the twelfth largest cargo turnover in the Baltic Sea, mainly due to its new terminal. The container
volumes increased by 91 per cent from the previous year. However, neighbouring Gdynia is still the largest Polish container port, but Gdansk is closing the gap at a remarkable pace.
“Many people tried to make fun of us when the first vessel arrived at our terminal with 15 boxes on board. But the fact is that growth has been exceptional and we have a good chance to reach the 400,000 TEU barrier this year if it continues like this”, says Boris Wenzel, CEO of DCT Gdansk SA. If the all-year turnover forecast is to be accomplished, volumes must increase heavily, as the port handled 162,253 TEUs in 2009. Boris Wenzel admits it is a rather optimistic engagement, but the latest figures are encouraging enough. “Last month we had a turnover of 24,500 TEUs. In March we will reach a turnover between 30,000 and 40,000 TEUs, so the figures are looking really good.”
In October last year a major decision was taken in favour of Gdansk – Maersk Line decided to extend their AE10 service to Poland, and thereby create the first direct connection between China/Southeast Asia and Poland. The transit time between Shanghai, China, and Gdansk is some 35 days. At the beginning of January the first AE10 service vessel, Maersk Taikung, arrived at the port. Ten vessels are operating within the loop. “During the past 30 years Gdynia has been the largest container terminal in the region, but now Gdansk’s importance is growing. Apart from the deepwater advantage, there are several shortsea feeder services operating from Gdansk, making it an optimal location for us”, says Dominik Landa, Operations Manager Eastern Central Europe, Maersk Line Polska. In 2008 Maersk Line’s Polish headquarters moved from Gdynia to its neighbouring city.
The picturesque Long Street (Ulica Dluga) starts at the Golden Gate. The gently curving street opens into an array of colourful burghersâ€™ houses, rococo portals, gothic mouldings and original porticoes.
The Neptune Fountain was erected in 1633 on commission from the then Mayor Bartholomew Schachmann. A replica of the statue has been raised in the Mini-Europe Park in Brussels.
Boris Wenzel, CEO of DCT Gdansk and Danuta Bilat, Chief Sales and Marketing Officer of DCT Gdansk.
Dominik Landa, Operations Manager Eastern Central Europe of Maersk Line Polska, spoke at the Baltic Container Conference 2010 in Gdansk.
“Due to the global recession and the surplus of vessels, we received a direct call two years earlier than expected. The ocean lines have had problems to find a need for all these vessels, so our terminal became an option”, says Boris Wenzel and continues:
»The direct container service from Asia to Gdansk represents a milestone for Poland’s sea freight. Never before has the Far East been so close«
“The concept of slow steaming allows the introduction of more vessels. It is run at very high bunker costs, but it is also for companies like Maersk Line and for many others, a matter of environmental concerns. By slow steaming, pollution is reduced. There is a new flexibility in slow steaming; when delayed according to the schedule the vessel can always steam a bit faster to catch up. When you are already steaming quite fast it is more difficult and very costly to increase speed.” “We regard it in fact quite differently now than three months ago, then I had some concerns regarding slow steaming. As we see it, slow steaming is here to stay and more and more shipping analysts are starting to view it in the same way.” Maersk Line’s decision to incorporate Gdansk in its AE10 service is not dependent on whether slow steaming is put into practice or not, according to Dominik Landa. “Maersk considers Poland as another key European market. The direct container service from Asia to Gdansk represents a milestone for Poland’s sea freight. Never before has the Far East been so close. In the future there will be more ocean lines joining us in Gdansk. And in general we are trying to establish even more direct calls to other sites in the Baltic Sea. It is a matter of demand, basically. However, to handle larger ocean-going vessels the selected port needs to be properly fitted regarding space and draft. And as these vessels are not ice-classed, icy conditions will be problematic.”
Some rumours say that Maersk Line’s engagement in Gdansk is not yet profitable, but Dominik Landa slams down on these rumours. “The service defrays the expenses thanks to transhipments. And we see increasing volumes, but of course it will take some time to convince companies to use ocean-going vessels.” Another force of DCT Gdansk’s set of arguments to choose their port is further cost reductions. Today shipping companies tend to press down their expenses due to global recession. “What we are demonstrating by adding direct calls to Gdansk, irrespective of slow steaming, is that there are massive cost savings for liners to be closer to the destination for transhipment.” “I would rather say that slow steaming, the crisis and surplus of ships are all elements that have contributed to triggering the event for one liner operator to take the risk and do something differently.
Even if these initial factors change, they will not cancel the viability of direct calls. Massive cost savings ensure viability. The analysis we made in cooperation with Maersk Line was confirmed by Ocean Shipping Consultants. It shows that there are 20 per cent savings for liner operators to bring their big ships here. Of course larger vessels need to be filled in an optimal way. But if they manage to fill the vessels, there are massive savings in the pot.” Boris Wenzel and the management of the DCT are therefore trying to convince other container operators to follow Maersk Line’s path. Even if additional contracts have yet to be signed, there could be some “interesting developments” already this year, according to Mr Wenzel.
“The direct calls by Maersk will trigger a snowball effect on the shipping market. Many players will reconsider their options on how they want to serve the Baltic region. Poland itself is an important enough market to draw cargo in the near future and justify direct calls. However, transhipment enables us to get the big ships here at an earlier point, and hopefully the shipping market will adjust to this new way of serving the countries of the Baltic. The hub concept and the transhipments are very important for us. I come from PSA, Port of Singapore, and I have learnt from them that you don’t build a new port just dreaming of doing transhipments. Then you are likely to fail or lose money. We have a strategy; this port will be a main gate to Poland and Central and Eastern Europe. The transhipments will always come on top, as a cherry on the cake.” Around EUR 200 million has been invested in the new container terminal. DCT Gdansk is a Polish registered company; the majority of shares are owned by GIF II (Global Infrastructure Fund II), a fund managed by a member of the Macquarie Group of Companies, headquartered in Australia. Construction of the terminal began in October 2005. At present the terminal is cooperating with a dozen shipping lines, 250 freight forwarders and two rail operators. One of their partners is Danish Unifeeder; the company serves around 30 ports in Northern Europe and the Baltic Sea. Unifeeder started to operate from Gdansk only recently and the Managing Director Jesper Kristensen believes the city possesses the necessary ingredients to become a major port in the Baltic Sea. But only one year ago, he would have dismissed such proposals.
“It is not important for us where the hubs are located and a historic hub position is not carved in stone. The more hubs the better, basically. We have never had a strong foothold in Poland before, but now we have established a strong feeder presence in Gdansk. Poland is the geographical centre for North European feeder services we believe, and the country is at the centre of things.”
To become a hub, the port needs established hinterland connections and a capacity to handle growth. DCT Gdansk has only completed phase one of its terminal project, but there is still room for additional volumes at the facility. “Our current infrastructure capacity is one million TEUs. However, we can only handle some 600,000 TEUs with our three STS cranes (ship to shore) at the moment. To reach a capacity of one million TEUs we need to add one or two more cranes. We will enter phase two after we have bought the necessary equipment. We might have to look at phase two already at the end of this year.” The expansion potential at DCT Gdansk is estimated to two million TEUs. “Phase two consists of extending the berth to one kilometre, among other things. The cost is estimated to EUR 15 million. And that’s for the infrastructure alone. As I said, we need to add some new equipment as well. How many STS cranes depends on how many cranes we bought during phase one. But we probably have to start immediately to buy at least one additional STS crane.”
Recently the terminal purchased a large new RTG crane (Rubber-Tyred Gantry Crane) from Swedish Kalmar.
“The crisis is a fantastic opportunity for us, as there are other terminals that are more than happy to postpone or cancel their orders. So it gave us an opportunity to get a brand new Kalmar crane at a decent price. But most important, we had unbeatable delivery terms. It also allows us to have a relation with another of the major equipment suppliers. It is strategic not just to depend on one brand”, says Boris Wenzel. Gdansk is far from pole position regarding hinterland connections. The same goes for the rest of Poland. The Marketing and Development Director of Port of Gdansk, Julian Skelnik, uses the river systems to exemplify. “One of my friends invited his American friend for a boat trip along one of our rivers. The man from America asked ‘How much does the government spend to keep the river wild?’ Apparently he enjoyed what he saw, but the truth is that the government doesn’t spend anything. In other countries, along the river Danube for example, the governments apply the EU inland waterways regulation. They treat their rivers as infrastructure assets. We don’t.” The Polish rail and road infrastructure is old-fashioned and inefficient. If the country’s Baltic Sea ports such as Gdynia and Gdansk are to compete with the major ports in the region, the overall infrastructure obstacles need to be overcome and improved.
“Poland is at centre of things”, says Jesper Kristensen, Managing Director of Unifeeder.
Julian Skelnik, Marketing and Development Director of Port of Gdansk spoke at the Baltic Container Conference.
»In other countries the governments apply the EU inland waterways regulation. They treat their rivers as infrastructure assets. We don’t.«
also a lack of modern logistic centres in Poland. We have been addressing the problems to the Polish government and hopefully they will do something about the situation. Today the goods trains have an average speed of 100 km/h in Germany, but on the Polish side the average speed is far below that – it is only 45 km/h.”
“For me as a foreigner, I do not understand why there is such a lack of ambition in this country. There is a view that things have to be the way they have always been. Hopefully the Polish government will finally build these roads and connect us with the southern parts of the country and countries around Poland”, says Boris Wenzel. “No, the hinterland connections are not as good as they should be, especially regarding the railway network. But Gdansk is not the only port lacking railway infrastructure”, says Danuta Bilat.
The above statements are harsh, indeed, but the infrastructure system is undergoing a fundamental change through national, private and EU funds. Some major decisions have been taken; within two years a new motorway from Gdansk to Warsaw will be completed, the A1. Gdansk will thereby be connected to the rest of Poland and southern Europe, and part of the Trans-European Transport Corridor No 6. A Tri-city (Gdynia, Sopot and Gdansk) ring-road is also under construction, which will ease traffic congestion and connect the port with the highway system. A tunnel under the Vistula River, surrounding the port, is also projected as well as a new railway bridge and modernization of railways. The infrastructure solutions will be further enhanced by the construction of the Pomeranian Logistic Centre (PLC). The project involves a 210-hectare area in the vicinity of the Port of Gdansk and DCT Gdansk, where 700,000 square metres of warehouse will be available, as well as offices and an industrial park. Today, the area is just a field that has been running wild. This spring the development tender for the area will be completed.
CTL Logistics is one of the private railway operators in Poland. The company operates between Germany, Poland, Ukraine and Belarus. According to Michat Brylinski, Product Development and Marketing Director, the company is lobbying within the government to improve the poor railway system. ”CTL are working hard to increase the railway connections between Bremerhaven, Hamburg and Poland. We believe Poland is the most prospective market, but of course we are aware of the poor Polish national railway system. It has to be improved. And there is
Baltic Sea container volumes went down by 20 per cent last year – but the region will recover. Within ten years Polish ports might handle as much as 2.3 million TEUs above the current levels. he economic downturn has had far-reaching effects on GDPs (Gross Domestic Product) worldwide – the Nordic and Baltic regions are no exceptions. The container volumes went down considerably in 2009. “There was a large volume increase of 125 per cent from 2000 to 2008 for the total Nordic and Baltic region, which spread demand confidence. However, this misplaced confidence resulted in shipping lines ordering more and larger vessels just in time for the economic downturn. So the economy deteriorates and the shipping lines’ capacity increases resulting in collapsed rates and lines are left with additional and unwanted tonnage. Volumes declined 20 per cent in the Baltic region during 2009”, says Steve Wray, Senior Consultant, Ocean Shipping Consultants. The Port of Gdansk belongs to the few exceptional cases, a majority of the ports faced substantial red figures.
“Between 2000 and 2008 the increase was 491 per cent in Gdansk, obviously from a relatively low base. Gdansk was the only port where the volumes continued to increase in 2009, to 162,253 TEUs as a result of Maersk volumes. We have seen strong growth in Poland since 2000; the Baltic region had the strongest demand growth in the European container market till the downturn.” In 2010 more and more ports will see their container volumes recover, to what extent depends on demand.
“Due to wide fluctuation of economic forecast during the recession, OSC has used three demand forecast cases – the base case, a recovery case and prolonged recession case. For the east and south Baltic hinterland, as elsewhere in Europe, economic trade recovery is expected to be gradual, because consumer spending is likely to be moderated by continued credit restraints. However, Poland had a slow down rather than a recession and is expected to recover more quickly.”
Baltic container port demand in 2020 is made up of two things; demand generated by each hinterland country and transit demand, according to Steve Wray. “The general outlook is that the terminals compete on price, efficiency, transit times and the cost of the hinterland connections. The total container port demand for south and east Baltic is forecast to grow between 48 and 60 per cent by 2015 and by a further 56 to 67 per cent by 2020, totalling somewhere between 8.2 and 10 million TEUs. Polish ports are expected to increase by between 1.27 and 1.43 million TEUs by 2015 and 1.81 and 2.3 million TEUs by 2020.” “It’s a general presumption that Russian cargo is always handled by Russian ports, transit ports in Finland and Baltic states continue to afford some advantages for some routes into Russia, as Gdansk.” To meet demand you need supply. All over the Nordic and Baltic regions container ports are developing facilities, investing in new equipment, extending quays and improving infrastructure. Capacity will
Steve Wray, Senior Consultant at Ocean Shipping Consultants during his speech at the Baltic Container Conference 2010 in Gdansk. increase in the east and south Baltic area as well, in Poland the Gdynia quay extension will be ready some time in 2015–2016 and DCT Gdansk is expecting to enter into phase two as soon as demand allows it. “When considering the supply and demand ratio together for 2020, the Baltic and Polish market projects are not likely to go ahead unless there is a demand. Capacity plans are likely to be introduced consistent with the steady improvement in the overall supply and demand balance. Recent capacity developments at the same time as the market slow down in Poland have knocked the supply and demand balance. Utilization rates are, however, likely to recover to over 80 per cent by 2020, because of the relatively strong recovery in Poland.” Steve Wray cannot say whether DCT Gdansk will become a hub or not, but the port already meets some of the necessary conditions.
“In 2008, Gdansk was generally served by feeders. The typical carriers were between 350-500 TEUs at this time, even if lineowned feeder vessels were larger. In 2008 liner operators were still deciding whether to choose Gdynia or Gdansk. The latter’s deepwater terminal has been an advantage, but not yet an issue.” “As volumes increase as well as transhipment, there will be a compelling reason to use a Baltic deepwater hub. And liner operators look at alternatives for congested European hubs. However, lines other than as Maersk and MSC are unlikely to be able to meet the necessary volumes until 2013–2014. It also appears that MSC may already be looking elsewhere. Weekly consignments of about 2,000–2,500 containers are required to make it cost effective, and that is about what we believe Maersk is currently handling.” Another advantage for Gdansk and other deepwater ports is the current ship development, where larger ship sizes are on the increase worldwide. These large ships will be used and lines will have to deploy large amounts of big tonnage to secondary services and feeders, according to OSC. One example is Maersk Line’s decision to include
»Poland had a slow down rather than a recession and is expected to recover more quickly« Gdansk in their AE10-service. Gdansk received a direct service sooner than the current demand levels indicate. “It’s apparent that considerable economic scale is possible with the introduction of larger vessels. If larger vessels can be attracted into the Baltic, it will be a cost advantage for the eastern hubs, that is something we have already seen. Despite Maersk calls with 8,000TEU vessels, volumes do not seem to justify this size of vessels at present, unless more transhipment volumes are added. And that is already happening.” “It seems that the majority of the cargo is bound for Polish local markets rather than transhipment, although I understand from the discussions, both with the DCT and Maersk Line, that it will be more like a 50/50 ratio between local cargo and transhipment cargo. This can only improve the situation. In the current market, direct competition will be between large vessels calling at Rotterdam and Hamburg, everything up to 12,500 TEUs and 6,800-TEU vessels calling at DCT. I’m also aware that there are now already 8,000-TEU vessels calling at Gdansk, which can only prove the equation. The Gdansk option is much cheaper than shipment via north continental ports. However, this is only a narrow perspective looking at cargo coming in to Poland. But for that narrow option, direct call is the favourite option.”
“There is an opinion that direct call is the result of spare tonnage and a solution to the possible delays at former transhipment hubs. However, deepwater is the key to berthing larger vessels and will become increasingly important. There is no reason why DCT cannot challenge Hamburg’s regional supremacy.”
44 Shipgaz No 2 2010
By Bent Mikkelsen email@example.com
Report Elisabeth Boye
Photo: bent mikkelsen
A sparrow on the high seas The coaster Elisabeth Boye is operating far beyond Europe – the vessel truly follows its predecessors. For more than a century, the coasters of Marstal, called Groller (Sparrows), have been trading all over the world and often a long time away from their homeport. The 1990 built Elisabeth Boye sticks to this tradition in a declining segment of the maritime business.
first time in ten years. Shipgaz visited the Elisabeth Boye while loading at Esbjerg on the outbound voyage for Hamburg. At present the coaster is heading for Vitoria in Brazil to pick up a cargo for Mombasa in Kenya and the Chinese mainland.
»It is nice to be here in our home country loading for a short voyage«
Shortly after Christmas 2009 the Elisabeth Boye arrived at Ayr, Scotland, with a cargo of timber from Suriname in South America on its first call at a European port in five years. After discharge, the coaster proceeded to Frederikshavn for an overhaul of the main engine and gearbox and arrived at a Danish port for the
Captain John Erik Sørensen.
“It is a rare visit to Denmark”, explains Captain John Erik Sørensen. “Normally we trade in all other parts of the world, and often on long voyages. It is nice to be here in our home country loading for a short voy-
age, but hopefully we will go on a long voyage afterwards.” The Elisabeth Boye has been working mainly in South American waters as well as Caribbean waters during the last ten years. For almost five of these years the ship sailed on a time charter serving the Falkland Islands from Uruguay and Chile (Punta Arenas). Instead of sailing directly from England to Port Stanley on the Islands – a 30-day voyage which the Elisabeth Boye has made several times – goods were shipped on container liners to Montevideo and from there shipped on the Elisabeth Boye to Port Stanley. “It was an interesting time charter, especially since the islanders on the
No 2 2010 Shipgaz 45
Report Photo: bent mikkelsen
The Elisabeth Boye loading in Danish Esbjerg. The coaster is now heading for Vitoria in Brazil to pick up a cargo for Mombasa, Kenya. Falklands were very happy with the steady delivery of supplies from England”, says John Sørensen. After the five years of service the ship took a cargo of bagged rice from Montevideo to Port au Prince on Haiti (before the earthquake) as a relief cargo. In the following year the ship was working with a number of different cargoes in the Caribbean area.
“It is a kind of old fashioned trade tramping in a certain area to another area, but I have been doing this for most of my life at sea and I would like to continue some more years”, says John Sørensen, who is 62 years of age and planning to cut down his annual sailing from six to only three months.
“I would like to spend more time at home with my wife and my grandchildren, but I am not ready to cut off my relations with life at sea totally. I guess I can work another five years or maybe more on these special terms”, says John Sørensen. The cargo that the Elisabeth Boye took at Esbjerg was a rather spectacular and unusual cargo in today’s transport pattern. It was a general cargo of a knock-down cement factory, which was exported from Danish cement giant F L Smith & Co to a site in Kuwait. From a warehouse at Esbjerg (care of Blue Water Shipping) the goods were sailed to Hamburg by the Elisabeth Boye and transferred to an ocean
Erik B Kromann Rederiet Erik B Kromann was founded in 1907 by Erik Boye Kromann.
going liner vessel and sailed to Kuwait. The components were all packed in wooden boxes and stowed by dockworkers with help from two forklifts working in the ship’s cargo hold.
“An old-fashioned ship like our Elisabeth Boye needs other markets than the European”, explains Lars Damgaard Kromann, from Rederiet Erik B Kromann. “A ship like that, a small tweendecker, is too costly and complicated to have operating in European ports. It is mainly because of the high cost of dockworkers, which are needed in larger numbers than a more modern boxhold vessel. But when we sail outside Europe our ship still has a poten-
46 Shipgaz No 2 2010
Report Elisabeth Boye Photo: bent mikkelsen
»An old-fashioned ship like our Elisabeth Boye needs other markets than the European« tial for transporting goods for various customers.” “We are particularly happy with the kind of voyages like the one we have fixed for the Elisabeth Boye after discharge of a cargo at Foynes, Ireland. It is a long haul time charter starting by passing Finisterre southbound towards Vitoria in Brazil. It might be two ports in Brazil before sailing to Mombasa in Kenya and China for discharge. What we are going to do after China is not yet known, but that is some months away, so something will turn up in due course.”
One of the company’s other ships, the Hans Boye, at present under the charter name Industrial Leader, started a long haul voyage at Halmstad in October 2009 calling
The ship, 1,652 GT, is 76.6 metres overall on a breadth of 11.2 metres. The B&W/Alpha diesel engine develops 772 kW to a service speed of 12 knots.
Wilmington, North Carolina and Port Alma in Australia on January 1, 2010. Later it made a couple of voyages from Indonesia to Australia and is now heading for Singapore for another cargo. The Hans Boye was the very last coaster delivered from any Danish shipyard. It was built by Nord-
søværftet at Ringkøbing and sailed out in September 1996.
The Elisabeth Boye was delivered in September 1990 from Søby Motorfabrik & Staalskibsværft as newbuilding no 71 to a family part-ownership called Rederiet Erik B Kromann VIII for a sum of DKK 30 million.
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Posidonia 2010 7-11 June 2010 Hellenikon Exhibition Centre, Athens, Greece
Your opportunity The biggest gathering in the shipping calendar with the owners of the world's largest fleet. Welcome to the home of shipping
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48 Shipgaz No 2 2010
By By Pierre Adolfsson firstname.lastname@example.org
Report EU ports sulphur directive
Photo: Port oF gotheNBUrg
Port of Gothenburg, Sweden, belongs to Gothenburg’s maritime inspection area, which covers the Swedish West Coast.
Sweden strict on sulphur limit
The implementation of the much debated new port sulphur regulation divides the Nordic countries – Sweden represents the toughest side. Since January 1 this year, ships at the quayside or at anchor in an EU port may have a maximum sulphur content of 0.1 per cent in their bunker oil. The new rules do not apply to all vessels within a port, only to ships at berth and “ships at berth means ships which are securely moored or anchored in a Community port while they are loading, unloading or hotelling, including the time spent when not engaged in cargo operations”, the EU directive states. This means that as soon a vessel is moving, the 0.1 limit – which is to be read as 0.10 – does not apply.
The maritime authorities in the member countries of the EU and the associated EES-states are responsible for putting the directive into practice at port state inspections. However, the directive has been heavily criticised, as there might be operational problems and safety risks associated with the use of the required fuels in ships that have not un-
dergone technical adaptations. The Norwegian Maritime Directorate has pointed at the explosions risks, for example. Due to the widespread concerns, the European Commission has adopted a recommendation “on the safe implementation of the use of low sulphur fuel by ships at berth in ports of the European Community”. The recommendation indicates that when ships fail to comply with the EU’s 0.1 per cent sulphur fuel at berth requirement, the member states should request those ships to provide detailed evidence of the steps they are taking to achieve compliance.
»So far we haven’t charged anybody with violating the sulphur directive«
Per Nordström, director of shipping at the Swedish Transport Agency.
These retrofits should be completed within six months after the directive enforcement date. However the Swedish Transport Agency, for example, quickly stated
that this recommendation does not change the fact that “As the regulation is part of the Swedish Environmental Code the Swedish Transport Agency’s personnel are obligated to report any suspected violation to public prosecution.”
This confirms one of the shipowners’ worst fears; the new rules will be enforced differently throughout the EU. Per Nordström, director of shipping at the Swedish Transport Agency, hopes the authority does not need to look deeper into the recommendation. “We have accepted the recommendation. However, we believe that the probability for vessels to face operational or other technical problems is relatively limited. But if any of those vessels enter any port in Sweden we will deal with it there and then.” Among the Nordic countries of Norway, Denmark, Sweden and Finland, bunker samples have mainly been gathered in one country – Sweden.
No 2 2010 Shipgaz 49
EU ports sulphur directive
Report Photo: Nicklas Liljegren / The Swedish maritime administration
»As far as we are concerned no Finnish flagged vessels have had any problems« Between January 1 and March 19, the Swedish Transport Agency took 67 bunker samples in Swedish ports, only a few of which were taken on Swedish-flagged ships.
“So far we have not charged anybody with violating the sulphur directive. On the other hand, there have been cases when a ship has been found with higher levels of sulphur than permitted in its bunker oil. But these ships have been able to prove that the bunker oil delivered had the wrong sulphur content and then the Swedish Transport Agency has certified that this is the case”, says Per Nordström, director of shipping. Six of the sulphur controls carried out so far have been in Gothenburg’s maritime inspection area, which covers the West Coast and the Nordic region’s largest port, the Port of Gothenburg, which alone has about 7,500 ship calls every year.
The majority of the samples were taken in the Malmö and Stockholm maritime inspection areas. The low number of samples taken in Gothenburg is said to be due to laboratory problems. On average, the Swedish Transport Agency takes around 200 bunker samples every year in Swedish ports. In shipping circles, it is said that there many ships still burn bunker oil with a higher sulphur content, which means that they are violating the sulphur directive.
Between January 1 and March 19, the Swedish Transport Agency has taken 67 bunker samples. “The vast majority are trying to follow the new directive, but unfortunately it is impossible for us to board every ship”, says Per Nordström, who refused to comment on these rumours. The maritime authorities in Norway, Denmark and Finland stick to the recommendation and have therefore yet to execute bunker inspections.
“Our legislation does not approve any exceptions, but we do apply the EU Commission recommendation. However, a detailed investigation will be carried out when vessels fail to comply with the sulphur directive. Due to the recommendation we have not launched vessel controls to any greater
Exceptions The 0.1 limit does not apply to vessels on a published timetable due to be at berth for less than two hours, to ships that switch off all engines and use shore-side electricity while at berth in ports or until January 1, 2012 for the vessels listed in the Annex.
extent. But we have received information that a couple of ships that do not comply with the new regulations have entered Finnish ports”, says marine inspector Jorma Kämäräinen at the Finnish Transport Security Administration, Trafi, and continues: “As far as we are concerned no Finnish flagged vessels have had any problems.” Terje Sagebakken at the Norwegian Maritime Directorate says the authority plans to initiate bunker inspections in the autumn. “When a vessel is violating the sulphur regulations it might be fined, stretching from NOK 60 000 and upwards.”
Heavy fines for those that do not comply with sulphur limit Vessels that call at the Port of Trieste and have fuel with too high sulphur content, risk fines of up to EUR 150,000. The port’s new regulations came into force on March 3.
The Port of Trieste has decided not to grant any exemptions to the sulphur limit and
the owner or operator of a noncompliant ship calling at the port may face prosecution and fines of between EUR 15,000 and 150,000, usually EUR 30,000 for the first offence. If a fined ship should call again at the port and still does not comply with the sulphur limit, the master, owner and
operator risk being banned from calling at all Italian ports.
International tanker owner association Intertanko, which has long claimed that shipowners have not had enough time or <opportunity to make the necessary adjustments to boilers on their ships to be able to switch
to low-sulphur fuels, reacted strongly against the Trieste port decision:
“This means that ship and port safety may be sacrificed purely in order to generate local harbour funds”, the association states in a press release. anna lundberg
50 Shipgaz No 2 2010
Newcomer Mikhail Ulyanov
By Pär-Henrik Sjöström email@example.com
Photos: Olev Tõnismaa
Russian tanker of Finnish design The shuttle tanker Mikhail Ulyanov is designed especially for operations between Arctic oil fields and an oil terminal in Murmansk. The Mikhail Ulyanov is a concrete example of the ultimate goal of Russian shipping policy: Russian cargo should be carried on Russian vessels, built by Russian shipyards. Indeed the vessel so far flies Cyprus flag, but it is most likely to be registered into the Russian International Ship Register. She is owned by Sovcomflot, the largest shipping company in Russia with a fleet of close to 150 ships.
The Arctic shuttle tanker was built by Admiralty Shipyards in St Petersburg. The vessels has been taken on long term charter by ZAO Sevmorneftegaz for oil shipments from the Prirazlom field in the Pechora Sea, mainly to the Varandey terminal in the Murmansk region. The design is based on Aker Arctic’s DAS-concept (Double Acting Ship). Aker Arctic in Finland was awarded the design contract for a total of five 70,000 dwt Arctic shuttle tankers in 2005. Three tankers were ordered by Sovcomflot from Samsung Heavy
Industries in South Korea. The Vasily Dinkov, Kapitan Gotsky and Timofey Guzhenko were delivered during 2008 and 2009. Two vessels of a resembling type, but with sligthly less engine power, were contracted from the shipyard in St Petersburg. The Mikhail Ulyanov will be followed by the sister vessel Kirill Lavrov in the second quarter of 2010. They are both named after Russian actors.
»The DAS-concept means that the ship goes stern first in heavy ice« Admiralty Shipyards is the oldest shipyard in Russia, established by Peter the Great on November 5, 1704.
These are the largest vessels ever built at the shipyard. The berth had to be modernised, although the shipyard already had built some ten tankers for the same owner of the Bridgetype. It is also the first time the shipyard has built a vessel into the regulations of two classification societies – Lloyd’s Register and the Russian Maritime Register. The DAS-concept means that the
vessel goes stern first in heavy ice. The shape of the stern is designed for icebreaking while the bow is optimised for open water operations. This arrangement provides the vessel with optimum performance as well in open water as in ice. According to the specification the vessel should be able to break 1.2 metres thick level ice with a speed of 3 knots without icebreaker escort.
Propulsion is provided by a diesel-electric machinery, including two pulling Azipod units of 8,500 kW each. The diameters of the stainless steel propellers in the Azipod units are 5.6 metres. As prime movers there are four Wärtsilä 9L38 medium speed engines with an output of 6,525 kW each at 600 rpm. The vessel also has two bowthrusters with a maximum output of 2,000 kW. The Mikhail Ulyanov has additional buoy loading equipment in the bow, which enables loading at sea.
No 2 2010 Shipgaz 51
1. A stern view, showing the icebreaking hull aft. 2. The controls on the bridge wing. 3. The main consol on the bridge. 4. A deck view.
Mikhail Ulyanov Type..........Double ActingArctic Shuttle Tanker Built by...........JSC Admiralty Shipyards, Russia Design......Aker Arctic Technology Inc, Finland Newbuilding No..........................................02750 Owner.............................JSC Sovcomflot, Russia Technical Management..........................Unicom Management Services, Cyprus Flag................................................................ Cyprus Class....... Lloyd’s Register of Shipping +100 A1 DOUBLE HULL OIL TANKER, ESP, SHIPRIGHT (SDA, FDA, CM ), LI, +LMC, UMS, IGS, NAV
1, IBS, ICC, SPM, BLS, HELICOPTER LANDING AREA, EP(P), DP(AA), Winterization D(-40) Russian Register of Shipping KM (*) LU6  A1 OIL TANKER (ESP) IMO No..................................................... 9333670 Call Sign........................................................5BTX2 Delivery date..........................February 27, 2010 Length o a................................................258.75 m Length b p................................................235.77 m Breadth...................................................... 34.00 m Depth......................................................... 20.80 m
Draught, Summer Load Line................ 13.60 m Draught, Ballast Open Water................ 8.93 m GT...................................................................49,866 DWT..............................................................69,830 Machinery...................................... Diesel-Electric Main Engines......................... 4 x Wärtsilä 9L38 Output (MCR)................................4 x 6,525 kW Propulsion..................................... 2 x Azipod v23 Output............................................. 2 x 8,500 kW Speed..........................................................16 knots Ice Class.................................................RMRS Lu6
52 Shipgaz no 2 2010
By Eddie Janson, firstname.lastname@example.org
Small but vital changes Paragraph 1.2.2, Objectives: Has been changed from “establish safeguards against all identified risks” to “assess all identified risks to its ships, personnel and the environment and establish safeguards.” This means that a risk assessment must be made for all operations carried out on board the vessels.
Safety: eddie Janson Captain Eddie Janson of MariTrain AB, instructor and consultant in maritime safety, points the Shipgaz spotlight at safety related matters.
n the 1st of July the amended ISM code will come into force. It is now more than ten years since the ISM code was made mandatory for most ships in the world. For most shipping managers the development of a Safety Management System has reduced the number of accidents and made their operations safer. But there are still some companies that see the ISM code as a burden and not as the useful tool it can be. These companies only want to fulfil the minimum standard of the ISM code.
The changes in the ISM code will not affect the ‘good’ companies very much, they already live up to the new standards, but those companies that only meet the minimum
»There are still some companies that see the ISM code as a burden and not as the useful tool it can be« Compliance with the International Safety Management (ISM) Code became mandatory with the adoption of SOLAS, Chapter IX, “Management for the Safe Operation of Ships”.
Paragraph 7, Development of plans for shipboard operations: Includes two small but important changes. The first: where the old ISM code only required the company to have “procedures for the preparation of plans, instructions and checklist for key shipboard operations” the new version requires the company to actually establish these instructions. The second: The safety of personnel is now included and not only limited to the safety of the ship and prevention of pollution.
requirements today will have to improve their Safety Management System.
at a first glance there are not many words that have been changed, but these words give a much stronger focus on handling risks and to prevent accidents before they happen. With the amendments, the ISM code will require all companies to have a Risk Management System including both Risk Assessment and Root Cause Analysis. The updates are:
Paragraph 8.1, Emergency prepar-
Photo: Jörgen SPrång
edness: Has been changed from “The Company should establish procedures to identify, describe and respond to potential emergency shipboard situations” to “The Company should identify potential emergency shipboard situations, and establish procedures to respond to them.” This statement reflects the adoption of a risk assessment concept within the ISM Code. Now companies need to consider in advance all potential emergency situations and establish emergency procedures.
Paragraph 9.2, Reports and analysis of non-conformities, accidents and hazardous occurrences: The sentence “The Company should establish procedures for the implementation of corrective actions” has been amended with “including measures intended to prevent recurrence”. To be able to include measures to prevent recurrence the Root Cause must be established, therefore companies should have a system for Root Cause Analysis. The Root Cause Analysis process should not only be used after an accident. It is even more important to use it after near misses, hazardous occurrences and non-con-
No 2 2010 Shipgaz 53
Spotlight Photo: Jörgen Språng
formities to prevent real accidents from happening.
Other changes: Paragraph 5 is amended with the word Periodically for the Masters review. In Paragraph 10 a similar change as in Paragraph 7 is made, so now all critical equipment on board must be identified, tested and have specific measures to ensure the reliability. As stated in paragraph 12 about Internal audits, the intervals between internal audits can now “In exceptional circumstances” be up to 15 months.
The updated ISM code also includes three new chapters with guidance. “Guidelines for the operational implementation of the ISM code” establish the basic principles for reviewing the safety management system for a company, the role of the Designated Person under the ISM code, reporting and analyzing of non-conformities, accidents
»The changes in the ISM code will not affect the ‘good’ companies very much, they already live up to the new standards « and hazardous occurrences (including near misses) and performing internal audits and management reviews. It is specifically mentioned that the Company should provide adequate resources and shore based support to the Designated Person. Even here it is mentioned that there must be a system in place to prevent reoccurrence of reported accidents and near misses. “Guidelines for qualifications and training of the Designated Person” state that he required qualifications for a Designated Person shall be experience either as a Ship Officer or at least three years practical senior
Phase 1 & 2 of the ism code By 1998 much of the commercial shipping community was required to be in compliance with the ISM code. By 2002 the ISM Code became mandatory to practically all of the international shipping community.
level in ship management operations. The guidelines for training only include eight subjects with no guidance on how the training will be performed.
“Guidelines on Near-Miss reporting” include requirements of a ‘just culture’ in companies where seafarers can report near misses without any punishment. It also requires that lessons learned from near misses should be used to improve safety performance. In order to do this, all near misses must be investigated in the same manner as real accidents. Most tanker companies that today have to fulfil the requirements of TMSA and Vetting Inspection Scheme already have a Risk Management system in place. However, for companies that do not, the introduction of the Risk Assessment and Root Cause Analysis methodologies will most likely result in a reduction in their accident records.
Icebreaking around the clock
The icebreaker tug Zeus is indeed smaller than her cousins in the Finnish icebreaker ﬂeet, but this winter has given her and her crew the chance to prove what they are really made of. TEXT & PHOTO: PÄR-HENRIK SJÖSTRÖM
“Icebreaker Zeus, this is Yvonne. I can see a few cables of open water before us but then again ice, ice, ice…” he voice on the loudspeaker of the VHF radio sounds tired and somewhat resigned. No wonder. The small cargo vessel had been stuck for hours in the ice in Södra Kvarken until the Swedish icebreaker Vidar Viking cut her loose and assisted her to open water. However, the freedom gained from the grip of the ice was only temporary. A few minutes later comes the anticipated message: “Zeus, Yvonne. We are stuck in the ice.” “Yvonne, this is Zeus replying. We are coming to your assistance now.” Such VHF radio messages have been common in the air in the Gulf of Bothnia this winter. The sight is no doubt depressing for the crew of the Yvonne. The frozen sea looks like a moonscape. Still, their vessel represents high quality tonnage on the Baltic Sea, designed for harsh winter conditions. Delivered in 2008, the 3,500 dwt Yvonne represents a modern type of smaller cargo vessel. To withstand the enormous strain during ice navigation she is built to the stringent rules corresponding to Finnish/Swedish ice class 1A. This means that she is built much stronger than vessels designed for open water operations only. Still, when the ice conditions are difficult, she is hopelessly stuck.
It almost seems that the winter caught the shipping industry by surprise. After a series of mild ice winters, 2010 turned out to be slightly harsher than a statistically average one. Strong winds created rigorous conditions not only in the Gulf of Bothnia, but also in the Gulf of Finland off Helsinki and in the Åland Sea. Some situations that came up got much attention from the media, as passenger ferries were involved. To provide additional icebreaking capacity and ensure vessel traffic to and from the ports in South Western Finland, the Finnish Transport Agency decided to take the combined icebreaker and anchor handling tug Zeus on time charter, starting from the first week in February 2010. The Zeus was assigned the coastal area between Hanko and Kaskinen, including the Turku archipelago. The charter of an additional icebreaker proved to be a wise decision, as the available capacity of Arctia Shipping – former Finstaship – was not sufficient to cover the whole coastline during different conditions. The Zeus was kept busy already throughout February, but it was March that turned out to be really hectic. “In February we assisted 31 vessels, but this number was exceeded already during the first half of March. During the past weeks we have not been idle for many hours”, Marcus Blomqvist, the master of Zeus, explains.
A vast area of pack ice is blocking the channel to the port of Uusikaupunki. Even with the assistance of an icebreaker it may take hours of struggle to get a single vessel through. Due to ice pressure the channel is clogged by broken ice immediately in the wake of the icebreaker. Chief officer Mikael Söderlund has time for a cup of coffee on deck before starting his watch at noon.
The master. Marcus Blomqvist has taken the navigatorâ€™s seat on the bridge of Zeus and is looking for the least difficult way to proceed through the ice. Mother Nature is on his side this time, providing daylight and good visibility.
»Offshore is a most interesting and challenging area of shipping. We have an excellent team on board and we are known as an efficient vessel that gets the job done quickly« Before going to print I asked for the latest update. First officer Diedrik Järnefelt replied from the bridge of the Zeus that during March, the Zeus had assisted 94 vessels until the end of the month, of which 33 had been taken on tow.
Normally the Zeus is based at den Helder in the Netherlands. The economic downturn has affected also the offshore business and the charter for the Finnish Transport Agency came as a welcome break. The Zeus left den Helder in mid-January with just a few hours’ notice and sailed for Hanko, where an aft section was added to the hull to make it easier to tow vessels. For her crew the new assignment came as a pleasant surprise, even if it perhaps had been anticipated that their services could be needed as one of the state-owned icebreakers was not available due to a charter in other waters. “For a change it is nice to be close to home and sail in home waters”, Marcus Blomqvist confirms. His accent immediately reveals that he is from Pargas in the Åboland archipelago, an area that for centuries has supplied the merchant fleet with seafarers. He knows the Archipelago Sea like the back of his hand. “I have sailed in these waters all my life with differ-
ent types of boats. I enjoy the archipelago very much and during the summer I sometimes work as the captain of a small tug, towing a barge with roundwood from islands in the archipelago, mainly to Färjsundet in Åland and to the pulp mills in Rauma. It gives you a totally different perspective when you are close to the surface.”
Marcus Blomqvist shares the master position on the Zeus with his colleagues Mikael Stude and NilsErik Westerholm. He has not for a minute regretted that he took the job when he was offered this opportunity by shipowner Joakim Håkans. “Offshore is a most interesting and challenging area of shipping. We have an excellent team on board and we are known in the offshore business as an efficient vessel that gets the job done quickly.” Marcus Blomqvist has long experience from different kinds of vessels and trades, both as a deck hand, bosun and deck officer. “For many years I sailed on Godby Shipping’s vessels. From 1995 to 2001 I was with Star Cruises as first officer, chief officer and finally safety manager, before I came to the Zeus as first officer. Here I have also been working as chief officer and in recent years as master.”
Marcus Blomqvist is a typical seafarer, he could not imagine any other career. “I decided to go to sea when I was sixteen. My grandfather, who was from Nagu, had in his day been sailing worldwide as a carpenter on large Åland owned windjammers. After my decision to go to sea myself I had a totally different status in his eyes”, Marcus Blomqvist recalls.
The Zeus in the port of Uusikaupunki during a necessary brief stop for bunkering and taking provisions. Usually also a part of the crew is changed during the stay in port.
All available members of the crew participate in taking provisions on board.
It is late Tuesday evening. The Zeus has been in the port of Uusikaupunki all day, taking on bunker and supplies. Also one of the nine crew members was relieved by his colleague. During the icebreaking season the crew is changed every second week, compared to about every fourth week in the North Sea. Not all the crew is changed at the same time, to avoid breaks in the information chain and ensure continuity in all activities on board.
“There is very little time for briefing during the day we change crews, so it would not be a good idea if the whole crew left the ship at the same time. Two weeks is a suitable time on board when we serve as an icebreaker. All four deck officers go six-hour watches and as there is action almost all the time, this is sometimes quite hectic”, Marcus Blomqvist says. The brief stop in port is also used for some service. Today some repairs were done on the port main engine, but late in the evening everything is ready for departure. Still the Zeus will stay another hour in port as the cargo vessel Sydland is preparing to sail from the industry port at the Yara plant in Uusikapunki with destination Lübeck.
Designed for icebreaking in the archipelago and in coastal waters, the Zeus has been employed as an icebreaker for just a couple of seasons. After delivery in December 1995, the Zeus was contracted by the Finnish Maritime Administration for icebreaking for a few weeks in 1996. In 2003 she was again employed as an icebreaker, but now by the Estonian Maritime Administration in Pärnu Bay. In February 2010 the Zeus was engaged for icebreaking by the Finnish Transport Agency for icebreaking in the coastal area between Hanko (Hangö in Swedish) and Kaskinen (Kaskö). The charter ended on March 31, 2010.
Most of the stevedores in the ports of Finland are on strike, but in the private port of Yara ships are discharged and loaded as usual. Traffic is busy and there are several vessels on the roads near the island of Isokari waiting to berth. After midnight the main engines of the Zeus start roaring and during a test run at the quay it is confirmed that everything is working after the overhaul. The icebreaker leaves the municipal port and stops
outside the industrial port, waiting for the Sydland. The cargo vessel has some difficulties turning around in the ice-clogged basin, but an hour after loosening its mooring lines she is moving in the channel after the Zeus. The vessel has difficulty in following, so it is decided to take her on tow. During icebreaking there are always two officers on the bridge of the Zeus. One of them is mainly re-
Time for necessary service. During the day in port some service is carried out on the main engines. The ship’s own crew are assisted by Alfons Håkan’s squad of repairmen, providing additional help where it is needed. With a fleet of tens of tugs, based along the Finnish coastline and in Estonia, they are constantly kept busy.
Maintenance on deck. Bosuns Marko LĂśnngren (opposite page) and Jarmo Knuutinen change the wire in the deck crane.
Soon to be opened. The shipâ€™s journal is still closed and the bridge is empty. Within a few hours the ship will sail and new entries are to be made.
sponsible for navigation, while the other one handles other tasks, such as communication with other vessels and monitoring the towing. When the towing line is connected to the Sydland, chief officer Mikael Söderlund sets the course and the ships start moving. Second officer Pekka Arasola observes the vessel on tow from the aft console on the bridge.
»When the towing line is connected to the Sydland, chief officer Mikael Söderlund sets the course and the ships start moving«
When it is time for the Sydland to leave the pi-
toxics. Massive measures were taken to save the eagle and they have paid off – today it is estimated that there are some 1,000 individuals in Finland. It is a fantastic experience to see this huge bird. It sits on the ice in the channel and flies majestically when the ship closes in. With slow wing strokes the eagle flies on a parallel course with the ship before it turns away and lands a little bit further away to observe the noisy intruder pass.
lot, off Isokari, her master decides to go through the archipelago instead of heading for the sea at Isokari. Several days of strong winds from the northwest have built massive ridges in the area west of Isokari. The archipelago channel is much easier. The Zeus leaves the Sydland in open water at Utö and on the return voyage to Isokari the Zeus is requested to go through the deepwater channel, mainly used by large oil tankers bound for the refinery in Naantali. The voyage through the Archipelago Sea during the crispy cold and clear winter day offers a lot to see. Off Fagerholm Island, on the leg between Lövskär and Utö, we spot several elks on the ice by the channel. When the Zeus comes closer the elks decide to turn back the same way they came. They were apparently trying to cross the channel to get to the island on the other side, but were stopped by the broken ice. The master looks carefully through his binoculars to see if any of them had fallen into the channel, which would have meant a certain death. We did not see any signs of such an accident.
On Vidskärsfjärden we spot the first white-tailed eagle. Seafarers see eagles frequently nowadays in the archipelago. In the early 1970s there were less than 50 pairs of eagles left in Finland due to environmental
The grey seal is not as popular among the local habitants as the eagle. A seal consumes close to 10 kilograms of fish a day. The fishermen lose both income and equipment, when their nets are destroyed and plundered by these greedy animals. In the old days the seal was an important resource for the inhabitants in the archipelago, providing them with leather, oil and meat. Now only a limited number may be hunted each year. I decide not to take any stand in the question of whether the grey seal is a predator or a victim, so I just enjoy watching the seals and their white pups on the pack-ice ridges. On Wednesday evening the Zeus is approaching the Sandbäck reef west of Isokari, where the Dutch cargo vessel Griftborg is stuck in the ice. Even for the icebreaker the ice is really heavy, with a lot of ridges. The
Chief officer Mikael Söderlund uses the searchlight to follow the broken channel between the port of Uusikaupunki and the pilot station at Isokari Island. It is somewhat difficult for the dry cargo vessel Sydland to follow the icebreaker and it is decided to take her on tow to make it possible to pick up more speed.
Strong equipment. Towing a vessel through heavy ice demands a lot of the equipment. When the going gets tough it is possible to get through only by force.
Chief officer Mikael Söderlund, 2nd officer Pekka Arasola and bosun Jarmo Knuutinen during the afternoon watch. The channel used by the large ferries is clogged with ice, ground to the shape of large, icy snowballs by the dense traffic.
»It looks like a potato field« Marcus Blomqvist mutters while he looks for alternative routes.
Mikael Söderlund and second officer Pekka Arasola will go off their watch in a few minutes. Marcus Blomqvist and first officer Aleksi Pöllänen have already come up to the bridge and are briefed about the situation before taking over.
wind has continued to blow hard, further increasing the pressure in the ice field. “Some ships empty their ballast tanks before entering the area. They are probably afraid that the tanks will freeze. However, they have no chance to proceed in ice with their propellers too high up in the water. The propeller is in the ice sludge of the channel instead of in the water, providing virtually no thrust”, chief officer Mikael Söderlund comments while we approach the vessel waiting for assistance.
“The ice is really difficult to force”, Mikael Söderlund informs, and adds that the icebreaker Voima is coming in the opposite direction, assisting the cargo vessel Nedland to Uusikaupunki. “But I do not think that it is possible for us to use the channel they break, as the ice field moves so much that in a short time it is closed again.” “It looks like a potato field”, Marcus Blomqvist mutters while he looks for alternative routes with the searchlight in the dusk.
Zeus – an icebreaking Anchor Handling Tug After a demanding but successful salvage operation of the cruise vessel Sally Albatross, which ran aground off Helsinki on March 4, 1994, the Turku based salvage and tug company Alfons Håkans received a considerable salvage fee. It was invested in a newbuilding, which in March 1995 was ordered from the Simek shipyard in Norway for NOK 77 million.
The hull, including propeller and rudder, is ice strengthened in the same way as on the latest generation of Finnish icebreakers. The engine output is about half that of the Fennica-class multipurpose icebreaker, which means that the output per propeller is about the same. Also the diameter of the propeller is about the same on the Zeus and the Fennica-class.
The owner wanted a truly multipurpose vessel, suitable for anchor handling, icebreaking, salvage, oil recovery, fire fighting and high sea towing. Much attention was paid to the newbuilding’s icebreaking qualities and the hull shape was primarily designed for icebreaking. VTT Technical Research Centre of Finland developed the hull lines and VTT was also engaged as a consultant, providing expertise throughout the project.
Propulsion is provided by two Caterpillar 3608 main engines with a total output of 5,420 kW. Both main engines are coupled to a single shaft and the diameter of the propeller is 4.2 metres. The bollard pull is 101 tons. The machinery runs on gas oil. Mostly the Zeus has been operating on the oil fields in the North Sea with den Helder in the Netherlands as her base.
The Zeus is moving westwards off Isokari to pick up the cargo vessel Griftborg, which is stuck in the ice. To the left the dry cargo vessel Nedland, following in the channel after the icebreaker Voima. The small bright dot to the right on the horizon is the Griftborg.
»You have to be on the alert all the time. If the vessel under tow is difficult to keep on course the bow may cut into the side of the channel« Pekka Arasola agrees. Two nights earlier he and Mikael Söderlund spent almost their complete watch from midnight to six o’clock in the morning trying to get a cargo vessel through the ridges.
“It is interesting that most of the vessels choose to go round Åland, even if it is possible to sail through the archipelago from Isokari to Utö in lighter ice conditions. The distance is shorter, and due to the ice it is likely that this shortens the journey by more than a day”, Mikael Söderlund ponders the choice of routes. It is of course the additional cost of piloting that deters the masters from using this route. But the officers on the bridge of the Zeus are not at all convinced that it pays off in the end. “The bunker consumption is high when trying to
get through the ice and there is also a much larger risk of damage, both from the ice and from towing. Due to the high risk the principle is that everyone pays for his own damage during ice navigation”, Mikael Söderlund adds.
Meanwhile the towing line has been fastened on the bollards on the forecastle deck of the Griftborg. When the Zeus starts pulling I see what Mikael Söderlund meant. The vessel is not following nicely in the wake of the Zeus. She is like a kite, swinging from one side to the other, sometimes stretching the towing line to its limits, sometimes bumping against the icebreaker’s stern. “You have to be on the alert all the time. If the vessel under tow is difficult to keep on course the bow may cut into the side of the channel”, Marcus Blomqvist explains. He has taken the seat in the aft starboard corner of the bridge, where he can follow the movements of the vessel on tow and adjust the towing winch at the same time. Aleksi Pöllänen has occupied the navigator’s seat at the cockpit-style console and uses the searchlight to find a way through the ridges,
where it would be a little bit easier to get through. “However, it is quite difficult to steer with a vessel on tow in such heavy ice. Usually we just have to go straight on as it is difficult to get a clear picture of the ice conditions a little bit further away when it is dark”, he says. He is the youngest member of the crew, but he has been with the ship for a couple of years already. Before that he earned experience from international cruise traffic with Royal Caribbean.
Suddenly the towing line breaks. The bosun Marko Lönngren is soon on the aft deck and begins the installation of a new, thicker towing cable. Already before there were some problems on the other ship with connecting the towing line and now further difficulties occur. Aleksi Pöllänen leaves the bridge and dresses in warm clothes before he goes out on the aft deck to assist the bosun in the chilly wind. “On a vessel like ours everyone gives a hand where it is needed. We are so few that it is impossible for everyone just to stick to their main tasks”, Marcus Blomqvist says. Marko Lönngren knows his job. Soon a new towing
line is rigged and the assistance may commence. Being a bosun of the old school, he probably knows the vessel better than anyone else on board and his skills are appreciated by everyone. “I am afraid that in the future we will no longer have true experts like him in the merchant fleet, as all resources are focused on training deck officers with a minimum of sea practice”, Marcus Blomqvist thinks. Marko Lönngren came to Alfons Håkans in 1985 as a deck hand on one of the harbour tugs. The job suited him so well that he did not see any reason for changing platforms. “I have been on the company’s tugs since then”, he says. “I have been with Zeus since she was delivered. As a matter of fact my colleague Lasse Laine and me are today the only ones who have been here since the vessel was new.”
With the additional power provided by the main engine of the Griftborg, the time consuming journey through the ridges goes without further stops. At Isokari the pilot boards the Griftborg and the last leg to Uusikaupunki may begin. The Nedland has been waiting on the roads and follows in the channel.
Master Marcus Blomqvist and 1st officer Aleksi Pöllänen watch the Griftborg grow on the horizon as the Zeus gets closer.
The Marc-André and the Feed Trondheim have been waiting for assistance the whole night. By dawn the Zeus is ready to take them westwards. The ice field, covering large parts of the southern Gulf of Bothnia, seems endless in mid March. It is nice to know that within a little bit more than a month it will have vanished completely.
»There is always a risk that the bow starts sliding along the edge of the channel so that we cannot come out of the channel« An hour later the Griftborg is left off Yara and manages to proceed to the quay without further assistance. There is not much time to rest for the crew of the Zeus, as the cargo vessels Marc André and Feed Trondheim report that they are stuck in the ice some ten nautical miles west of Isokari. They were taken to that position by the icebreaker Voima, which after that
had to rush to Rauma, where the ice situation was rapidly deteriorating.
Early on Thursday morning the Zeus reaches the two vessels. At full speed the icebreaker passes the Marc-André at close distance, trying to loosen the ice pressure. “We have good manoeuvrability, but there is always a risk that the bow starts sliding along the edge of the channel so that we cannot come out of the channel. This is a potential risk when you go very close to another vessel to cut her loose, you just have to be on top of the situation all the time”, Marcus Blomqvist explains while he does steering with one hand and adjusts the thrust from the propeller with
“The average ice season is the most difficult for shipping” According to ice expert Jouni Vainio at the Finnish Meteorological Institute, the ice cover of the Baltic Sea has not been this vast since 1996. “At the end of February 2010 the ice covered an area of 245,000 square kilometres, which so far is the largest for this winter”, he informs. “This is considerably more than in 2003 when it was 232,000 square kilometres, but less than in 1996 when it reached 262,000 square kilometres.” Statistically this has been an average ice season, even if it is getting close to severe. If the ice coverage exceeds 279,000 square kilometres it is classed as severe. However, the maximum extent of ice cover does not necessary tell the whole truth. For vessel traffic this winter has been extremely difficult. “Usually the average seasons turn out to be the hard-
est ones for ice navigation. Warm and windy periods alternate between cold periods and cause the ice to drift. From this follows ice pressure and ridging in the ice fields. Cold and calm periods increase the amount of ice, which with the next windy period will drift against the close drift ice edges. Brash ice barriers are formed, which are difficult to force”, Jouni Vainio explains. For example on March 18 the extent of the ice cover was 219,000 square kilometres, but still the situation for shipping was at least as difficult as in late February. Jouni Vainio thinks that even if there is global warming, there will be difficult winters for shipping in the northern Baltic Sea also in the future. “It is possible that there may be fewer extremely severe winters, but we will still have average ice seasons, causing much trouble for shipping.”
1st officer Aleksi PĂśllĂ¤nen makes some course adjustments to the auto pilot.
Experience with ice. 2nd officer Pekka Arasola is normally master of the tug Poseidon. For several years he has been commanding the Protector, including icebreaking on the Riga Bay and Lake Saimaa.
»It is often possible to avoid the most difficult ridges and choose paths with easier ice. It demands a lot of course alterations, but it usually pays off in the end« the other hand. The manoeuvre is successful and soon the Marc-André starts moving again. The hull shape of the Feed Trondheim makes it more difficult to get her moving again, but after two close passages she too is under way. Both vessels follow in the wake of the icebreaker westwards towards an area of open water north of Åland.
Meanwhile Marko Lönngren has brought some fresh coffee to the bridge from the pantry two decks below. Marcus Blomqvist is not sure how many cups he has had already, but without hesitation he takes the cup handed to him. He explains that coffee is one of the most important provisions taken on board while bunkering and refilling the stores every week. “The Finnish merchant fleet in fact runs on coffee. In the Netherlands we usually order coffee from Finland and take on board 100 kg each time. The roast of Finnish coffee is familiar, but we have also found some local brands that are to our taste.” When moving westwards towards Södra Kvarken the radio traffic reveals that the Swedish icebreaker Vidar Viking is collecting a convoy of southbound vessels. Marcus Blomqvist calls the icebreaker on the VHF, asking if his two vessels may join the convoy.
The two icebreakers decide that the Vidar Viking will proceed eastwards until they meet, and take over the two vessels. The Zeus is then able to turn back to Uusikaupunki, where yet two other vessels are waiting for assistance.
The deck officers of the Zeus are impressed by how smoothly cooperation with the Swedish icebreakers goes. Indeed the Gulf of Bothnia seems to be the only area where international cooperation between icebreakers really works in practice. For example, in the Gulf of Finland there is hardly any cooperation at all between the icebreakers from different nations. “Cooperation with the Swedish icebreakers really works on equal terms, and I think this is quite unique. I have only positive things to say about the Swedish icebreakers, which have been most helpful”, says Pekka Arasola, who is now on watch.
On the return voyage to Isokari, the Zeus takes a more southern route to explore if it will be easier to get through the ice in the southern channel to Isokari, which is called the summer fairway. Everything looks fine until the last few miles. A massive packed ice field south west of Isokari makes it difficult even for the icebreaker to get through. After a couple of advances the Zeus cuts through, but the officers on watch decide to abandon the idea to get the waiting tanker Trans Fjell through by this route. Pekka Arasola, who has been with Alfons Håkans since 1980, is not a member of the ordinary crew of the Zeus. He is assigned to the icebreaker for the
Drift ice has a dynamic nature, being forced by winds and currents. Drift ice can be level, rafted or ridged, and its concentration could be 1 to 100 per cent. Drift ice with a concentration of more than 80 per cent is called pack ice.
Chief engineer Tom Fredriksson in the engine control room.
»Icebreaking demands a lot from the whole propulsion system and during extreme conditions there are always some alarms from the engine room« winter campaign, thanks to his extensive experience of icebreaking. Normally he is the master of one of the newest tugs in the fleet, the Poseidon, which during the winter has been based in Hanko, but usually has Kotka as her base. Pekka Arasola served on the Zeus during the first icebreaking season, when the vessel was new in 1996. He has also been the master of the Protector for twelve years, including six seasons of icebreaking at the Riga Bay. In 2003 also the Zeus was in the area breaking ice for the Estonian government.
Pekka Arasola says that it is to a large degree up to the officers on the bridges of the merchant vessels how they succeed in winter navigation. Of course there are conditions that make it impossible to proceed, but there is surprisingly much to be won, depending on how the vessel is navigated through the ice fields. “If you have the right spirit and a basic knowledge about ice navigation you can proceed surprisingly far, if you are willing to do some work for it. It is often possible to avoid the most difficult ridges and choose paths with easier ice. It demands a lot of course alterations, but it usually pays off in the end”, he clarifies. The Zeus has stopped because the Trans Fjell cannot follow in the channel. The icebreaker starts moving stern first through the channel and stops close to the tanker. Bosun Jarmo Knuutinen is making fast the towing line. The Norwegian crew of the Trans
Fjell are true professionals and the preparations are made in no time. Down in the engine room the main engines have been running more or less on full power for more than two days without interruption. In the control room chief engineer Tom Fredriksson is running some diagnostics and monitoring the temperature of the exhaust gas. Everything seems to work fine after the overhaul in Uusikaupunki.
Tom Fredriksson knows his engines in every detail. Working in a ship with Caterpillar main engines has been interesting, as he used to be a Wärtsilä employee for many years. “The Caterpillars work with higher pressures and temperatures and differ in quite many ways. However they are compact and powerful engines”, he says. Before Tom Fredriksson took the land job at Wärtsilä in 1993, he had already been with Alfons Håkans on the Herakles – a tug that Alfons Håkans converted into a pusher in 1991. He spent a year at Star Cruises before he returned to Wärtsilä in 1996 and then to Alfons Håkans in January 1997, when he came to the Zeus. The engine department also consists of first engineer Tuomas Kaartinen. During icebreaking the engine room is manned all the time in six-hour watches.
“Icebreaking demands a lot from the whole propulsion system and during extreme conditions there are always some alarms from the engine room. It is necessary to be here all the time”, Tom Fredriksson says. “Especially we have to monitor the temperature of the sea water going to the plate heat exchanger for the main engine’s fresh water cooling circuit. We feed the cooling water back to the seachest and try to keep the intake of seawater at a temperature of 20 degrees Celsius. If the temperature drops too low, the sea water will freeze into slash in the pipes and the cooling stops working.” As we go westwards the ice is getting a little bit eas-
Communication is a vital part of icebreaking. Chief officer Mikael Sรถderlund gives instructions by VHF to the vessel being assisted.
The Yvonne is stuck and Master Marcus Blomqvist, having gone off his watch, follows how she is cut loose before he takes a hot sauna.
Chief engineer Tom Fredriksson enjoying the afternoon sun on deck. The sun is getting warmer in March, but the nights are still cold.
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»Only a few minutes later the Zeus heads towards Isokari, where the Sinbad is waiting. It is going to be another long night for the crew of Zeus« ier, but proceeding is still slow. Even under tow it was difficult to get the Trans Fjell through the pack ice field. I ask chief officer Mikael Söderlund if he after all would not rather be on the North Sea. He admits that this has been quite a change, but at the same time inspiring. Still he likes the offshore work as well. “Our most common type of task on the North Sea is to tow rigs into new positions and handle their anchors. They account for 90 per cent of our time at sea. Such a job typically takes some three days.”
He thinks that the Zeus is an ideal place to work. “We are quite independent and manage most of the things from the ship. Our clients have also been most pleased with our performance. I have heard that we are said to be one of the most efficient AHTs in the southern part of the North Sea. This is important for the client, because the sooner the rig is repositioned, the sooner it can start to earn money.” Mikael Söderlund was employed by Alfons Håkans in 1998 and has been on the Zeus since then. He has, however, done some other work in between, for example on the ferries Amorella and Nordlandia. “I became tired of the everlasting rolling. Back then the vessels set out to sea no matter how bad the weather was, so we spent a lot of time at sea rolling in the huge waves near the rigs, just waiting for better
weather to be able to start work. Nowadays the vessels wait in port until the weather enables work on the oil fields.” In the mess room cook-steward Jyri Sjöroos tries to watch TV. Icebreaking is a noisy business and the noise is even worse on the lower decks of the ship. “We have a gym in the fore part, but it is almost impossible to hear your own thoughts, not to mention the music from an MP3-player. The constant noise is definitively a disadvantage with icebreaking. In the bow it sounds like hitting the hull with a sledgehammer.”
During my stay on board I learn that Jyri Sjöroos prepares excellent food. “Meals are always important on a ship. I have no restrictions regarding the budget for provisions, as long as it stays within reasonable limits. In the long run simple home cooking made from good ingredients is appreciated most. You cannot eat restaurantstyle food all the time. But once a week we have steak, that’s a tradition.” In the Netherlands Jyri Sjöroos usually finds the same provisions as in Finland, with a few exceptions. “It is impossible to get Finnish-style rye bread. When I come to work I usually pack the suitcase full with bread from Finland”, he says.
The first opportunity for me to go ashore appears late on Friday evening when a repairman comes aboard. The Zeus makes a brief call at Yara, stern first towards the quay. I jump ashore and the repairman jumps aboard. Only a few minutes later the Zeus heads towards Isokari, where the Sinbad is waiting. It is going to be another long night for the crew of the Zeus.
While the sun sets in the west, the Zeus proceeds eastwards towards the port of Uusikaupunki. Another busy day is turning into an equally busy night.
86 Shipgaz No 2 2010
By Per Nyström, email@example.com
Not all about main engines Technology: per nyström Per Nyström has a long experience as Chief Engineer, Shipyard Superintendent and troubleshooter when propulsion systems fail. He is part owner of FT Engineering AB.
here has been a tendency over the last couple of years that shipping companies employ performance engineers, in order to increase propulsion efficiency and the economy of the vessel. The main engine performance has usually been in focus, and there are several instruments in the market intended for combustion optimizing. Some of those are of good quality with satisfactory software, but there are others of poor or very poor standard and those can hardly be used for accurate assessment of the combustion process.
The focus on a vessel’s main en-
The rudder is another part of the vessel that can increase the fuel consumption considerably. Usually the rudder profile is based on an accurately calculated NACA profile (National Advisory Committee for Aeronautics). Placing sacrificial anodes (sometimes six or more) on the active part of the
Bilge keels covered with sacrificial anodes will also add to a high fuel bill. Add to this that misplaced anodes seldom offer proper cathodic protection, but are consumed by erosion, and it is not evident that an anode has done its job just because it is nearly missing at the time of drydocking. The propeller performance is greatly depending on surface roughness. ISO standard 484/1, valid for propellers with a diameter greater than 2.5 m, suggests a surface roughness of 3–25 µm Ra (arithmetic mean difference). This magnitude of surface roughness offers however a higher resistance than necessary. Tests have been carried out several times with polishing to max 1 µm Ra. One test on a 15-year old chemical carrier showed that the vessel reached full speed with full cargo at 78 per PHoTo: JÖRGEN SPRÅNG
gine does however not seldom mean that other measures that would have significant impact on fuel consumption are neglected. Usually the main engines are well set up and adjusted, but this is rarely found when we come to the auxiliary engines. During performance tests it is often found that the most substantial reduction of fuel costs can be achieved by optimizing the auxiliary engines, and to some extent also the boilers. Auxiliary engines have considerably more running hours per year than the main engine and are often operated on expensive marine diesel (if a shaft alternator is not installed). Therefore apparently just minor adjustments could lead to comparatively large savings.
pending entirely on the paint spray technique. One of the vessels had a roughness of 0.075 mm and the other had a roughness of 0.186 mm. This led to a hull resistance on the latter vessel that caused an increased fuel consumption of about ten per cent. This shows that it is of outmost importance that the result of the underwater hull paintwork is monitored accurately.
»inaccurate steering will contribute considerably to increased fuel consumption«
rudder blade will however lead to inefficient steering, in addition to the direct resistance it will cause. Inaccurate steering will contribute considerably to increased fuel consumption. It goes without saying, that optimizing the autopilot will promote fuel savings and careful positioning of sacrificial anodes will improve the vessel’s over all performance.
on ships in service, hull resistance is sometimes neglected as a parameter for increased propulsion performance. A hull’s roughness after a dry-docking is not seldom far too rough. Tests on a pair of sister vessels showed that they had very different hull surface roughness de-
Reducing hull resistance and careful positioning of sacrificial anodes on the propeller could improve the vessel’s over all performance much more than just optimizing the main engine.
No # 2010 Shipgaz 87
»Tests on sister vessels showed that they had very different hull surface roughness depending entirely on the paint spray technique« cent engine power after the propeller had been polished to 1 µm Ra.
Steam boilers are often operated with excessive oxygen, in order to safeguard against smoke emissions in port. The penalty for unnecessary safeguards is increased fuel consumption and poor economic performance. Leaking steam traps are usually the cause for the most unnecessary fuel consumption in a boiler. When making a performance test of the main engine, it is beneficial if the result is plotted into the propeller curve, as this will give an idea of hull resistance and possible marine growth. Main engine performance tests should be a monthly routine.
Route planning is certainlyan important measure to increase over all performance, including both the route and optimized speed. The most cost efficient manner is to maintain an as even engine power as possible during the entire voyage. Shallow waters, where the squat effect affects the ship’s propulsion power, should be passed with reduced speed. A fuel meter repeater display on the bridge is an essential instrument to obtain the best possible propulsion performance.
FOR DIESEL ENGINE MAINTENANCE
Fuel saving at speed reduction 1 F = V22 X Cons. V2 Where F is the reduction in fuel consumption, V1 is the reduced speed, V2 is the higher speed and Cons. is the consumption at the higher speed. Example: A tanker with displacement of 38,500 MT had a fuel consumption of 93 kg/NM at 16.2 Kn. Fuel consumption at a speed re duction of 1 knot would be:
F = 15.2 X 93=82 kg/NM 16.22 i.e. a 12 kg/NM consump tion reduction on a trans atlantic voyage would result in 46 MT of saved fuels. With IFO 380 at a price of USD 450/MT, this would mean a reduction of the fuel bill by USD 20,700. 2
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Ship’s trim optimizing has showed to be efficient for propulsion efficiency. Optimized trim has in some cases meant that the main engine power could be reduced by more than 10 per cent while still maintaining speed. Trim optimizing is a matter of fullscale experiments, since there is no rule of thumb. Optimum trim will vary with speed, displacement etc. So, for successful propulsion performance and over all economy, there is more than just main engine performance to deal with.
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88 Shipgaz No 2 2010
By Bent Mikkelsen email@example.com
Report Maersk simulator
Photo: bent mikkelsen
Maersk opens offshore simulator Maersk Supply’s new full-mission bridge simulator enables offshore vessel crews to increase their skills. But it’s an expensive facility. Maersk Supply Services has taken the lead in a new advanced training facility at Maersk Training Centre situated at Svendborg. The new full-bridge simulator will provide the right scenario for captains and mates on board the Maersk Supply fleet units. Despite the price of several hundred million Danish kroner, the bridge simulator is considered a good investment. Figures from the old simulator, slightly less advanced, show that over a period of nine years the simulator has saved damage with an estimated insurance value of around USD 180 million from 208 separate courses.
The Maersk Training Centre situated in Svendborg, the original hometown of A P Møller, now has officially opened one of the most advanced offshore full-mission simulators for training crew on anchor han-
dlers and other offshore vessels. Maersk Supply Services is one of the largest operators of offshore vessels above 15,000 bhp with a fleet of around 55 units. The new simulator has been built in a joint venture with Maersk Supply, Maersk Training Centre and Kongsberg-Simrad.
»There is no doubt that the investment will pay off in the future«
Training Centre we offer training to other owners and operators. In fact we already have a long list of external customers at our facilities, which will contribute to the income to our part of the business”, says Claus Bihl.
Claus Bihl, Managing Director at the Maersk Training Centre.
Amongst the customers at the centre are Statoil, Petrobras and a number of other major offshore players. The training facility, especially the new A-bridge, provides an environment that is at the same level as any of the modern ships in the fleet of Maersk Supply Service. By using the training simulator the captains and mates will get a second chance in complicated operations at sea. “It is correct that they will get a second chance in a way by testing a certain operation in the simulator first”, says Carsten Plougmann Andersen, CEO of Maersk Supply Service.
The new branch of the Maersk Training Centre has already been named Maersk Offshore Simulator and Innovation Centre, or in short Mosaic. “There is no doubt that the investment will pay off in the future, when we look at the ability to avoid damage in real life”, says Claus Bihl, Managing Director at the Maersk Training Centre. “And even if our name is Maersk
No 2 2010 Shipgaz 89
Report Photo: bent mikkelsen
Maersk Supply’s anchorhandler Mærsk Transporter is working out of Port Stanley. “In today’s complicated and sophisticated offshore world we are working with extremely high values and any mistake or error will often have enormous consequences in terms of money and time consumption, so I think that it will give a customer some confidence to have a complicated operation tested in a our simulator before it is done in real life. We have already tested some of our operations with the customer to show how we would have done it, but also that we are open for discussions with the other party.”
The new Bridge A gives a 360-degree view of the scenario at a certain position offshore. The system can have several different rigs to serve for the supply vessels. It can be an anchor handling unit towing a jack-up rig or a semi-submersible rig, which has to be posi-
tioned with a number of anchors in heavy chains. All kinds of scenarios can be simulated: heavy swell, increasing wind as well as other things. The operator can cock up the communication between the anchor handler and the winch controller or create a black-out on board and make a hydraulic failure on the ship’s own winch.
“Some of our most experienced captains have already praised the simulator and say that it is like being on board their own vessels at sea with no differences”, says Carsten Plougmann Andersen. The simulator uses the Mærsk Attender type (Built at Volkswerft Stralsund and fitted with 24,000 horsepower and 275 tons bollard pull) as a training ship. The other bridges in the Mosaic centre are used for other kinds of training. One is dedicated to DP
Maersk supply service Founded in 1967 as the first Scandinavian operator with the deliveries of the Mærsk Feeder and the Mærsk Supplier from a German shipyard. In 1986 the first anchor handler with more than 15,000 horsepower was delivered.
training. This also includes training of engine staff in working with the electrical systems behind the panels. “We have had several requests from engineering staff that wanted to dismantle the whole electrical control on the Dynamic Positioning system. The engineering staff is normally called to the bridge, if there is a failure in the system so here they can try to fix it under controlled circumstances”, says Claus Pihl.
The other two bridges can be used for various training exercises, like navigation close to a rig (semi-sub or jack-up) or training in cargo handling (containers or power discharging etc). Part of the Maersk Training Centre complex at Svendborg is a hotel with sleeping facilities for staff during the stay at the centre. A normal course often takes four to five days with normal working hours.
90 Shipgaz No 2 2010
Technical Review Photo: david hazell
New Anschütz auto pilot series NP 5000 play systems of radar, chart-radar and ECDIS. Clearly arranged functions are accessible via push buttons or the touch screen to ensure operation is kept as simple as possible.
The Maersk Kalmar.
Maersk and Lloyd’s test bio-fuel environment Maersk and Lloyd’s Register cooperate in a two year-programme to test the suitability of bio-diesel for use in powering marine engines.The feasibility study will take place on board the Maersk Line container ship, Maersk Kalmar. Collaborators in the biodiesel project are Maersk Line, Maersk Tankers, Maersk Supply Service, Maersk Drilling, Maersk Ship Management, Lloyd’s Register’s Strategic Research Group, and a consortium of Dutch subcontractors. The project is being part funded by the Dutch government and co-ordinated by Maersk Maritime Technology (MSM).
The bio diesel FAME (fatty acid methyl esters) used for the test will be based on sustainable crops grown in (temperate) regions or reused oils. Initially, the scope of the tests will involve using a blend of between 5% and 7% biodiesel, with the blend percentage being steadily increased. “One of the aims of the tests is to establish the degree to which issues experienced by the automotive industry in the use FAME, will be duplicated on board ship, in particular the impact on storage stability, handling and its subsequent use in the engine. Where adverse effects are arising it is hoped to find solutions to overcome them.” says Kim Tanneberger, Specialist of Lloyd’s Register’s Strategic Research Group.
Cargotec recently handed over the keys of its 2,000th Kalmar DRF reachstacker assembled at its production facility in Lidhult, Sweden, to Kleinwort GmbH, a long-time customer of Kalmar counterbalance equipment.
The new NautoPilot 5000 autopilot series features a large graphical display. Equipment German based navigation company Raytheon Anschütz announces the upcoming release of their new NautoPilot 5000 adaptive autopilot series. With this autopilot series, the company launches the successor of their NP 2000 autopilot series. The NP 5000 is based on the same Anschütz steering algorithms, but is enhanced to include highly advanced functions for economic and precise navigation such as an integrated steering performance display and a new course control operation mode.
The new autopilot’s most obvious feature certainly is its large graphical display which offers six different day and night modes within an intuitive to operate touch screen. The screen is designed in line with the colour palettes that are in use for the dis-
The large display features an integrated heading and rudder plotter, which provides a graphical indication of heading changes and all used rudder angles. This indication instantaneously indicates the steering performance of the autopilot due to the effects of changes to parameter settings such as rudder, counter rudder and yawing. The operator benefits from simple adjustments of the autopilot’s settings to gain optimized steering performance, which results in minimal rudder action and thus reduced fuel consumption. Another contribution to economic navigation and reduction in fuel consumption is achieved by the Eco-Mode of the autopilot, which provides the automatic adaptation to the current sea-state and weather. Periodical yawing movements, which can be caused by roll and pitch, will normally result in rudder actions with high amplitudes. As frequent rudder actions will not compensate the heading deviation due to environmental conditions, the autopilot reduces its sensitivity to such movements. As a result, the autopilot continuously adapts to current environmental conditions without a manual change of autopilot parameters. Subsequently less rudder action is required, which leads to lower levels of speed reduction and thus less fuel consumption.
EU funding for BESST project Research Maritime research project BESST, running from September 2009 to February 2013, has received EU funding. The BESST project (short for Breakthrough in European Ship and Shipbuilding Technologies) is formed of Europe’s leading shipbuilders, including STX Finland, STX France, Fincantieri, Meyer Werft, Thyssen Krupp Marine Systems and Damen Group. In addition, Germanischer Lloyd (GL) along with 20 research institutes and universities, further four classification societies and 31 industrial companies is part of the research network. Initiated by European Economic Interest Group Euroyards, BESST aims to achieve a breakthrough in competitiveness, environ-
mental friendliness and safety in EU built ships with a focus on passenger ships, ferries and mega-yachts. The strategic objective of BESST is to secure and improve the competitive position of European shipyards in a sustainable way. The primary goal is to increase the competitiveness of European built ships through decreased life cycle cost, drastically reduced environmental impact and continually improved safety. The estimated impact of BESST will result in a reduction of life cycle cost of roughly 120 million Euro per Panamax ship and a reduction of CO2 emissions by approximately 12 per cent per ship each year.
No 2 2010 Shipgaz 91
Hamworty’s sewage treatment now has CCS Type Approval.
Hamworthy secures Chinese type approval Strong buoyant ropes around the vessel get tangled in the propeller of approaching boats.
Propeller arresters stop pirate skiffs Security The Merchant Maritime Warfare Centre (MMWC), a UK based maritime anti-piracy organisation, has launched Propeller Arresters, the first non-lethal countermeasure of its kind to protect vessels underway. When crossed, the Propeller Arrester causes failure of the attacking vessel’s propulsion, rendering it disabled and no longer a threat.
Rigged to heavy duty booms and deployed prior to entry of high risk area, the Propeller Arresters release lines of strong buoyant rope that float on the surface of the water. The forward movement of the deploying vessel maintains their extension without interference to the vessel’s own propeller and is unaffected by the vortex’s created. Their specialist design enables
them to be deployed in approximately 30 seconds with minimal man power and remain effective when left unattended regardless of vessel speed, design, cargo and weather conditions. When the vessel arrives in safe waters, the Propeller Arresters can be wound back onto the drums and stored on board ready for use again when required. “The Propeller Arresters offer for the first time, a non-lethal countermeasure that is capable of stopping not only single attacking vessels but multiple ones simultaneously before they get close enough to get a ladder or grapnel hook onto your vessel. They are reusable, repairable and a fraction of the cost of having an armed or unarmed team onboard,” says Nick Davis, Chairman of MMWC.
Landskrona Stål AB
Maintenance Hamworthy, one of the world’s leading manufacturers of water treatment systems has become the first non-domestic sewage plant supplier to achieve CCS Type Approval, strengthening its position in the world’s largest shipbuilding nation. The approval came at a pivotal point in marine environmental legislation as new IMO Marpol Annex IV guidelines come into force requiring all vessels to be fitted with compliant sewage treatment plant.
Hamworthy’s ST-C enhanced sewage plant uses an extended aeration process which has been honed for marine application over four decades. The technology, which is fully compatible with gravity and vacuum collection systems, features an automatic control system for unattended operation and minimum maintenance and is available in a modular compact construction for retrofit applications. Hamworthy has also developed a range of advanced MBR (Membrane Bioreactor) treatments plants to enable ships to continue discharging black and grey water in especially sensitive waters, where regulations demand tighter controls.
REPAIR SHIPYARD IN HELSINGBORG SWEDEN ”The shipyard in the heart of Oresund Strait”
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112 x 16 meters 40 and 5 tons +46 42 12 02 95 +46 42 18 09 16
Helsingborgs Shipyard with a rich history in shipbuilding and repairs since 1876, is now run by Landskrona Stål AB. We can perform repairs both in our drydock, as well as on board ship.
92 Shipgaz No 2 2010
Technical Review Environmental services package Service Wärtsilä has introduced a range
of services, dubbed Environmental Services, aimed at helping customers to minimise emissions into the air and water and also help them to meet increasingly stringent legislation and regulations, the company said. The new portfolio includes a range of products, solutions and services aimed at both land-based power plants and ship installations. As part of the portfolio, Wärtsilä offers includes catalysts (SCR) that treat NOx emissions, while scrubbers are offered for removing SOx. Also offered are complete oily water treatment systems. Wärtsilä also offers total service packages, including start-ups, installations, engineering work and maintenance and repairs. The company has plans to develop a new area of expertise, namely consultancy services, to support customers in optimising their environmental performance. Further plans to broaden the company’s services offering are also at the planning stage.
MARIN gets laboratory subsidy Research MARIN has been granted an EUR 14 million government subsidy for the construction of a unique research laboratory. The TFLab or Two Phase laboratory, will be unique in the world and it means that MARIN has new possibilities to work on improving the safety of the shipping and offshore industry.
MARIN’s main Vacuum Tank in Ede will be rebuilt into an entirely new facility. Wave-creating devices, wave-dampening and measuring systems will be added to the new Vacuum Tank. In combination with the graduations in atmospheric pressure, the behaviour of ships in waves can be significantly better simulated. This facility will be able to take MARIN into entirely new research directions in the field of flooding, wave impacts and in improving the efficiency of propulsion and in reducing resistance. One interesting factor is that waves of 21 m in altitude will be able to be simulated in the new facility. This is twice as high as the simulation possibilities in the current facilities of MARIN. These new research possibilities make an
The new MARIN TFLab will have new tanks. important contribution to the strengthening of the international position of MARIN and to the competitive position of the Dutch maritime sector. The facility is expected to be completed end-2011. Since 1932, the Maritime Research Institute Netherlands (MARIN) has been an independent service provider for the maritime industry. The service of MARIN is a unique combination of simulations, model tests, precision measurements and training, as well as hydrodynamics and nautical research.
Wilhelmsen Ships Service
ACCOUNT SALES MANAGER SWEDEN WSS Sweden is looking for an ambitious, highly result oriented and dynamic Account Sales Manager. The selected candidate focus & ambition will be to commercially develop our sales concept and relationship towards our customers top & middle management within our 4 business areas; Marine Products, Technical Services, Ship Agency and Maritime Logistics. Qualifications; • University degree and/or similar level by experience from technical/commercial background, preferably from the marine industry • Excellent sales and negotiations skills are essential • Ability to co-operate across organisation lines internally and towards customers • Ability to work in a team and motivate both colleagues and customers • Positive, systematic and accurate nature • Excellent communication skills and a good command of both the English and Swedish/Norwegian language • Ability to communicate on all levels • Ability to work independently and systematically • Able to meet deadlines through good time management and allocation of priorities • Computer Literate
Our vision is to attract, develop and retain competent and capable people with the right attitude. We believe that the quality of our services depends to a great extent on the performance of the individual employee. In order to maintain a good working environment, we give high priority to the training, development and motivation of our personnel. We believe empowered employees in an innovative, learning organisation are our main competitive advantage in meeting the needs and wants of our customers. If you feel that you are the candidate described above and is looking forward to join our great team of employees and together grow this business we appreciate your application and CV within the 30th of April.
Wilhelmsen Ships Service AB Mail: Box 8982, 40274 Gothenburg, Sweden. Office: Lilla Bommen 6, 41104 Gothenburg, Sweden. Tel: +46 31 222260. Email: firstname.lastname@example.org. Internet: www.wilhelmsen.com
Wilhelmsen Ships Service is part of Wilhelmsen Maritime Services, a Wilh. Wilhelmsen group company. It is the world’s leading maritime services network, with the capability to service 2 200 ports in 115 countries. The company’s main focus is to deliver improved vessel operating efficiency to the merchant fleet. In 2008 the company made 208 000 product deliveries to 21 000 vessels and handled 53 000 port calls. Wilhelmsen Ships Service has 4 300 employees operating out of 313 offices in 73 countries.
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With our web application Shipgaz Training we provide computer based education for your employees. Custom-made courses for your companyâ€™s specific needs let you meet the increasing demands for competence development. Shipgaz Training offers a cost efficient service for ship owners and a time saving tool for the operative personnel. A service from Shipgaz.
94 Shipgaz No 2 2010
Fleet Review Photo: pär-henrik sjöström
Photo: bent mikkelsen
Jolanda at the end of the line recycling After 54 years of traffic one could conclude that it was a very solid product that was delivered from the shipyard Martenshoeker Scheepsbouw (hull # 84) in Hoogezand, Holland, in November 1956. The ship referred to is the Antigua & Barbuda-flagged coaster Jolanda, which in March 2010 arrived at Frederikshavn for recycling by Jatop ApS.
Originally the ship was delivered to the Dutch company N.V. Bennett & Co in Rotterdam as the Robox. After 13 years of service she was sold to the Danish entrepreneur Dansk Dammann Asfalt. Renamed Svend Dammann, she carried raw materials from the quarries at Bornholm. In the following 20 years the Svend Dammann delivered roadstones to nearly every Danish port. After this era the Svend Dammann was sold to a Finnish captain and placed under Honduras flag under the name of Jolanda, which became the ship’s third and last name. The commercial management was placed with the Rhein-Maas Group in Lübeck. The Finnish captain retired in 2000 and a Russian captain was hired to command the vessel. The Jolanda is 57 metres long and has a deadweight of 970 tons. In 1977 she was fitted with a new B&W/Alpha engine with an output of 700 hp, providing a service speed of 10.5 knots.
Stena Line duo to new waters Move The Stena Line twins Stena Germanica and Stena Scandinavica will be replaced on the Gothenburg–Kiel route after a long career. They were included in a series of originally four ferries, ordered Poland for delivery in 1981 and 1982. The building process was problematic and only two of the vessels were actually taken over by Stena Line. The Stena Germanica entered service in April 1987 and the Stena Scandinavica in February 1988.
When delivered, the Stena Germanica was not even completed and the outfitting continued in Gothenburg. Despite the fact that the Stena Scandinavica was totally completed when handed over, she went straight to Cityvarvet in Gothenburg when she arrived. To improve her fuel economy the bulbous bow was rebuilt and a duck tail was added aft. When docked out, modifications were made to the interiors. Her sister underwent a similar refit after that.
The tonnage renewal on the Kiel route is initiated by the delivery of two 5,500 lane meter “Superferries” from Nordic Yards in Wismar in summer and autumn 2010 for the Harwich–Hoek van Holland route. They enable the transfer of the Stena Hollandica and Stena Britannica to the Gothenburg–Kiel route. They do not only replace the Polishbuilt twins, but also the ro-ro vessels Stena Carrier and Stena Freighter, trading between Gothenburg and Travemünde. The newcomers on the Kiel route will be renamed Stena Germanica and Stena Scandinavica. They will enter service in late August 2010 and in early January 2011. The old Stena Germanica and Stena Scandinavica will move to the Karlskrona–Gdynia service. The chartered Finnarrow from the Gdynia route will be redelivered to her owner in 2010 and Stena Line has not yet decided about the future of the Stena Baltica.
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MOTOR-SERVICE SWEDEN AB Please contact us for prices & delivery times
MOTOR-SERVICE SWEDEN AB Address Mölna Fabriksväg 8, SE-610 72 Vagnhärad, Sweden Telephone +46-(0)156 340 40 Telefax +46-(0)156 209 40 E-mail email@example.com Website www.motor-service.se
no 2 2010 Shipgaz 95
The editor of the Fleet review section is Pär-Henrik Sjöström, contact him at firstname.lastname@example.org
Fleet Review Photo: mADli VitismAnn
Photo: Pär-henrik sjöström
Scania sold to italy
Princess maria back in her home waters BUsiness A queen has stepped down,
becoming a Princess, but she is back in her original kingdom. The 29 years old cruise ferry Princess Maria, ex Queen of Scandinavia, was from April 1 back in her old waters, calling the port of Helsinki. The cruise ferry is on time charter from DFDS Seaways to the Russian based Inflot Cruise and Ferry Ltd of St. Petersburg, sailing for St. Peterline between St. Petersburg and Helsinki. the tiMe charter has Been arranged after several years of idleness after the closure of the Bergen-Newcastle service in August 2008. After a lay-up period at Korsør the ship was used as an accommodation vessel at Oskarshamn. Later she was in Copenhagen as a hotel vessel during the COP15 meeting in December 2009. During the winter the Queen of Scandinavia has been laid up at Fredericia Skibsværft. The vessel’s first Danish call took place
during her sea trials in March 1981, when the vessel named WTT 1251 called Aalborg Værft for docking. Later she was named Finlandia and delivered to Effoa for the Silja Line service between Helsinki and Stockholm. in late 1988 the Ferry was sOld to DFDS Seaways. Despite the primitive piece of paper with both signatures the vessel was taken over by DFDS Seaways in May 1990 and renamed Queen of Scandinavia for the service between Copenhagen and Oslo. The queen continued sailing from Copenhagen until 2001, when she was employed on the Ijmuiden–Newcastle service and from 2007 on the Bergen–Newcastle service. Even if the ship’s birth certificate says she is 29, the public areas of the cruise ferry are only a few years old, and also the hull has been rebuilt several times. In fact the present bow section of the ferry is the third one since the delivery in 1981.
sale Saaremaa Shipping Company, Estonia, has sold the ferry Scania to the Italian owner Medmar Group. She has been reflagged to Italian flag. The Scania did her last voyage on the domestic Rohuküla–Heltermaa route between the Estonian mainland and Hiiumaa on March 15, when she was replaced by the newbuilding Muhumaa.
the scania has Been sailing under the Estonian flag for ten years. She has also been employed on the Kuivastu–Virtsu service between the mainland and Saaremaa and during the summer season 2005–2008 on the summer service Mõntu–Ventspils. Scania was built by Aalborg Værft in 1972 for service across Öresund on the Limhamn–Dragør route. The 74.4 metres long ferry had under Estonian flag capacity for 400 passengers – even if she on Öresund could carry 800 passengers – and 80 cars. With a draft of 4.3 metres she was an ideal choice for the shallow waters between the mainland and the islands and also her ice class III from Bureau Veritas was sufficient. Her service speed is 14.5 knots. the scania will Be Operated in Medmar Navi’s domestic route between Napoli and Ischia. According to the Postimees newspaper she will be renamed Emanuele d’Abundo Primo.
your maritime solution partner For more info please visit www.sspa.se
96 Shipgaz No 2 2010
Fleet Review Photo: erik nilsson
Ektank has bought the product and chemical carrier Gan-Sky, 17,000 DWT. She was built in 2009 at Celik Tekne, Turkey. She has been renamed Ekfjord.
Newbuilding contracts in the Nordic market Month
USD 67.5 m
USD 67.5 m
USD 33 m
NOK 360 m
USD 33.5 m
USD 45 m
resale PSV09CD resale Greatship resale
Fred Olsen Windcarrier No
Lamprell Energy, Dubai 5.12
USD 160 m
Fred Olsen Windcarrier No
Lamprell Energy, Dubai 9.12
USD 160 m
Western Bulk Carriers No
USD 33 m
USD 32.5 m
USD 32.5 m
No 2 2010 Shipgaz 97
Fleet Review Month
USD 32.5 m
USD 32.5 m
USD 32.5 m
Bergen Yards Fosen
EUR 103 m
Bergen Yards Fosen
EUR 103 m
USD 67.4 m
USD 67.4 m
USD 67.4 m
USD 67.4 m
STX Offshore Norway
STX Offshore Norway
STX Offshore Norway
Secondhand transactions in the Nordic market Month Name
Aasen Sh, Mosterhamn
Sarunto AS, Haugesund
Odfjell SE, Bergen
Tide ASA, Bergen
BW Gas, Oslo
USD 35 m
Pacific Carriers, Singapore
BW Gas, Oslo
USD 35 m
Pacific Carriers, Singapore
HH Ferries, Helsingør
Dunya Shipping, Istanbul
USD 53 m
Dunya Shipping, Istanbul
Dunya Shipping, Istanbul
USD 79 m
DS Norden, Copenhagen
Dunya Shipping, Istanbul
DS Norden, Copenhagen
Dunya Shipping, Istanbul
DS Norden, Copenhagen
Holy House Sh, Stockholm
USD 3.033 m
USD 2.92 m
Belka Shipping, Cyprus
M Myklebusthaug, Bergen
KS Difko 73, Cph
USD 6.5 m
Aegean Marine, Greece
Odfjell SE, Bergen
side-loader Nørresundby Red, Ålborg
Augusta Offshore, Naples
Blue Star Line, Faaborg
Invest Danmark, Cph
Lubeca Marin, Germany
Antisana Ship, Saxkøbing
Antisana Ship, Saxkøbing
Doris Sh, Copenhagen
Dunya Denizcilik, Turkey
USD 20 m
Ektank AB, Göteborg
USD 13.5 m
Odfjell SE, Bergen
Elgar Shipping, Skärhamn
DKK 3.3 m
Bellatrix Line, Kobe
J Lauritzen, Copenhagen
Trico Marine, Haugesund
USD 16 m
side-loader Nygård Shipping, Egersund
JK Shipping, Ørsted
Egil Skaten, Bergen
USD 18.9 m
DS Norden, Copenhagen
USD 42.5 m
Star Bulk, Singapore
USD 50 m
Singapore Shipping, Singapore
USD 13.1 m
USD 8.6 m
Eitzen Chemicals, Oslo
J L Mowinckel, Bergen
USD 7.6 m
Sydpolen Invest AS, Oslo
KS Korsør, Copenhagen
* = gross tons
4,101* 1987 c = capacity in cubic metres
All details believed to be correct but not guaranteed.
98 Shipgaz No 2 2010
By Pär-Henrik Sjöström email@example.com
Retro Kristina Regina
Photo: Krzysztof Brzoza collection
The Bore after departure from Skeppsbron, Stockholm in June 1961. Note the cars on the forecastle deck.
Former steamer turns fifty Fifty years is a considerable age for a passenger ship nowadays. For the former steamer Kristina Regina turning fifty also means retirement. There are still a few old seagoing passenger ships in active service in the Nordic countries. Two of them are former steamers and running mates from the Turku–Åland–Stockholm route. The Swedish Birger Jarl, built in 1953 is the Nestor, but now also the Finnish Kristina Regina has turned fifty.
It is most likely that the active career of the Kristina Regina will end this autumn. Her owner, the Finnish shipping company Kristina Cruises, has bought a new vessel to replace her in their cruise traffic. When the new Kristina Katarina enters service after an extensive refit at the end of August 2010, the Kris-
tina Regina will be retired. Built as the Konstantin Simonov in Poland in 1982, the Kristina Katarina represents a totally different generation of ship. In recent years she has been cruising in the Mediterranean as The Iris.
»The vessel will be in traffic until the end of August but she is for sale« Mikko Partanen, managing director of Kristina Cruises.
This year not only marks a Golden Jubilee for the Kristina Regina. Kristina Cruises turned 25 in February 2010. The Kristina Regina has been included in the Kotka-based company’s fleet for 21 years. The foremost reason for replacing the Kristina Regina is the new SOLAS 2010 regulations, com-
ing into force in October 2010. “The vessel will be in traffic until the end of August but she is for sale,” confirms Mikko Partanen, managing director of Kristina Cruises. In Turku there has been some talk among enthusiasts to preserve the vessel. One alternative mentioned is to turn her into a floating hotel by the River Aura. Time may show if these plans are to be realised. A large ship like her is costly to operate, even if she is permanently moored, as she needs continuous maintenance.
Turku would no doubt be a suitable home port for this old lady. The vessel would then have come full circle, as Turku – Åbo was originally painted as home port on her stern.
No 2 2010 Shipgaz 99
Retro Photo: Shipgaz archive
Photo: Shipgaz archive
Above left: An engineer by the steam engine. The telegraph shows full ahead. Above right: The Bore arriving at Turku during the severe winter 1966. Photo: Shipgaz Archive
Above left: Ship owner Hans von Rettig and captain Fredrik Karlsson shake hands after delivery. Above right: The Bore’s first captain Fredrik Karlsson. Back then her name was the Bore. But let us return fifty years in time. On April 5, 1960 the brand new passenger steamer Bore left the Oskarshamns Varv shipyard for a sea trial and maiden voyage to Nynäshamn. Svensk Sjöfarts Tidning reported that the voyage was made in excellent spring weather and the ship was handed over to the Bore shipping company at sea.
Onboard were a lot of invited guests, among them the shipowner Hans von Rettig and the Bore company’s managing director Carl Martin Trapp. The shipyard was represented by the brothers Karl Robert Ameln and Sture Ameln, as well as the shipyard manager Gunnar Wester-
lund. During the sea trial the vessel was commanded by Tor Loman, who handed her over to her ordinary master Fredrik Karlsson.
Although delivered at the dawn of the car ferry era, the Bore was in many ways still quite a traditional vessel. Indeed she had a car deck for some 65 private cars and a few trucks with access from side doors. Regarding cargo handling the Bore was by no means equal to car ferries with drivethrough capability, even if the owner liked to emphasize her car-carrying capacity. Private cars were relatively easy to load and discharge. It was more complicated with trucks and buses, which were loaded through a larger side door
Power of steam The Bore and her two years younger running mate Svea Jarl were the last passenger steamers built for the Sweden–Finland route.
100 Shipgaz No 2 2010
Retro Kristina Regina Photo: Pär-Henrik Sjöström
Still in Bore livery, the Borea re-opened the Skeppsbron route in summer 1984. The operator Aura Line went bankrupt the same autumn. on the port side. As it was impossible to turn them round on the deck and drive them into position, they were placed with their wheels on platforms. On these they were moved to the aft part of the car deck by a winch system, enabling loading of the next unit. The vehicles were discharged in an opposite sequence and they had to be reversed ashore. “I cannot remember that we ever carried any larger vehicles, but the car deck was often filled with private cars,” master mariner Björn Sjöman recalls. He was working as a deck officer on the Bore on several occasions during the 1960s and early 1970s.
The Bore was powered by a 3,050 ihp quadruple steam engine of Götaverken’s design, built under licence by Oskarshamns Varv. Hans von Rettig himself had decided the
von Rettig The industrial magnate Hans von Rettig was one of Finland’s richest persons. He owned the Rettig tobacco company and was the main shareholder of the Bore shipping company.
type of machinery. In his opinion a steam engine provided better comfort for the passengers with a low level of noise and vibrations. In those days the diesel engines were still regarded as quite noisy and indeed the technology in this field was still far from the point, where we stand today.
Hans von Rettig also had another principle, where he did not compromise. The passenger vessels of the Bore company should have two funnels. As there was no need for a second funnel on the Bore, the forward one was a dummy. Hans von Rettig’s strong impact on how the vessel was designed was typical for the Bore company. The von Rettig family owned the shipping company and Hans von Rettig had a deep personal interest in its vessels,
even though he was mainly engaged in the family-owned tobacco industry.
The Bore had the capacity for 1,028 passengers, of which 63 could be offered cabin accommodation in first class and 272 in tourist class. The rest of the capacity was reserved for deck passengers. There was a separate bar for passengers in first class only, while the dining room was open to all passengers. Later, when the traffic became integrated with the classless car ferries, the system with two classes was abandoned. Hans von Rettig had a large owner’s cabin, which was used exclusively by members of the von Rettig family. It has been said that not even Finland’s President Urho Kekkonen was allowed to stay in this cabin when he travelled by the Bore.
No 2 2010 Shipgaz 101
Retro Photo: Sakari Saari
»Hans von Rettig’s strong impact on how the vessel was designed was typical for the Bore company«
A view from the forecastle deck of the Kristina Regina during a cruise on the Red Sea. Photo: Pär-Henrik Sjöström
The newbuilding was introduced on the Turku–Mariehamn–Stockholm route, which was operated in cooperation with Stockholms Rederiaktiebolag Svea, Finnish Steamship Company FÅA and Ångfartygsaktiebolaget Bore. During the 1960s the trio Svea Jarl, Ilmatar and Bore were employed on the route, each of the companies deploying one vessel. From 1970 the traffic was operated under the name of the jointly owned Silja Line. The same year the Silja Line text and logotype was painted on the hull of all vessels.
In 1976 the traffic between Turku and Stockholm’s Skeppsbron quay came to an end. The last vessel on the route was the Bore, who made her last voyage from Skeppsbron on August 31. Thereafter Silja Line’s traffic was concentrated to the Värtan harbour in Stockholm and operated by car ferries only. The Bore was laid up in her home port Turku on September 1, 1976. The high bunker costs due to the energy crisis had made her expensive to operate. In the autumn 1977 she was sold to Jakob Lines for a seasonal service between Pietarsaari (Jakobstad) and Skellefteå. Her livery with the characteristic light yellow hull remained unchanged, but the new owner renamed her the Borea. Even the funnel marks were almost unchanged; the letter “B” was just exchanged for a “J”.
In 1981 the Borea left the Gulf of Bothnia for a charter as an accommodation vessel. After redelivery in 1984 she returned to Finland and was sold to Helsingfors Steamship Company. She was taken on charter by a new shipping company Aura Line, with the intention of reviving the traditional passenger service between Turku and Skeppsbron. The Borea was in service only during the summer 1984. Steamship nostalgia was not enough to keep the
The Kristina Regina during a cruise to her former home port Turku in 2005. traffic running. Aura Line went bankrupt and the vessel was again laid up in Turku in October 1984.
In 1987 the Borea was bought by Kristina Cruises. The interiors were modernised and the steam engine was replaced by two diesels. The new machinery made her lose some of her original charm, but it improved the economic performance drastically. She entered service as the Kristina Regina in a totally new livery in 1988.
Since then the vessel has been upgraded many times, the last time in 2001, when the cabins and public areas were modernised once again. The company has found a successful niche, offering cruises in foreign waters on the Finnish market with a vessel flying the Finnish flag with a Finnish crew. The Kristina Regina has been employed in cruise traffic in, for example, the Mediterranean, Northern Europe, the Canary Islands and the Red Sea.
102 Shipgaz No 2 2010
By Bent Mikkelsen firstname.lastname@example.org
Retro A love story
Photo: Rederiet Erik B Kromann
The previous Elisabeth Boye was built in 1957 in Deest, Holland.
It began with love in Ommel The Rederiet Erik B Kronmann has for many years employed crewmembers from the islands of Tuvalu – it all started in the 1960s. Like most ships in today’s globalized maritime world, the Elisabeth Boye (see another article on the Elisabeth Boye on page 44) sails with a mixed crew: Two Danes, two Poles, one Lithuanian and four from the Pacific Islands of Tuvalu to a total of nine persons.
»We are very satisfied with the people from the islands as they are good seafarers«
The fact that four of the crew
Lars Damgaard Kromann from the Rederiet Erik B Kronmann.
members are from Tuvalu is not a new kind of cheap scheme with unknown seafarers from remote areas, but part of a long tradition in the Marstalbased shipping company Rederiet Erik B Kromann. The Tuvalu connection in Rederiet Erik B Kromann started back in 1965,
when the previous Elisabeth Boye (built in 1957 in Deest, Holland, 900 DWT) was fixed for a time charter trading between Australia and the Island of Tuvalu, which at that time was British territory.
Part of the charter agreement was that the ship had to be manned by local crew, expect for the captain, mate and chief engineer. When the ship arrived in Australia, it was not possible to hire any Aus-
tralians for the jobs on board, but a dispensation was issued allowing the use of Tuvalu crew instead. So a number of crewmen from the island’s population of around 13,000 people signed on the Elisabeth Boye.
Amongst them was the 30-year old Soli Monise, who started as a cook, but later signed on as a deckhand. He stayed on board in different positions and agreed to sail the ship back to Europe in the summer of 1966. The ship was already sold to a Norwegian owner and was to be delivered in Stavanger in August 1966. The long-term relationship with the
No 2 2010 Shipgaz 103
A love story
Retro Photo: bent mikkelsen
»We have to be very careful not to put the wrong people together on the same vessel«
The Elisabeth Boye was delivered in September 1990 from Søby Motorfabrik & Staalskibsværft. Photo: bent mikkelsen
His last position was as cook on the newbuilding Hans Boye, when it was delivered from Ringkøbing in 1996. At that time he was the person with the longest record of employment in Rederiet Erik B Kromann, which in 1996 consisted of 100 persons. “There is no doubt that the personal relationship with Tuvalu via Soli has made it easy to recruit crew members from the Pacific Islands”, says Lars Damgaard Kromann. “At present we have around twelve persons in our staff on three ships. We are very satisfied with the people from the islands as they are good seafarers. The only hiccup is that we have to be very careful not to put the wrong people together on the same vessel. The Tuvalu population consists of three clans and they don’t mix well on the same vessel.”
Soli Monise in the galley of the Hans Boye. Photo: bent mikkelsen
Elisabeth Boye’s Danish crew made the chief engineer invite Soli Monies to his home in Ommel near Marstal before he was supposed to fly back to the Pacific. The stay in Ommel turned out longer than planned. Love struck Soli Monise when the chief engineer’s sister showed up to welcome her brother home. They got married and settled in Marstal, so Soli Monise continued sailing on the ships from Rederiet Erik B Kromann all the time to his retirement at the end of 1990s.
On the Elisabeth Boye the positions as cook, bosun and two able seamen are manned by citizens from Tuvalu, which is the local word for ‘Group of Eight’ referring to the fact that Tuvalu is made up of eight small islands. “Rederiet Erik B Kromann has a good reputation on my islands”, says the 64-year old bosun Telalo Winifaleti. “It is nice to sail on these Danish ships, which have brought quite a lot of wealth to my homeland.”
The 64-year old bosun Telalo Winifaleti and the Danish trainee Jonas Steenholm Fuglsang.
In 1942 …
… the Norwegian cargo liner Bonneville entered an American port in May in grey wartime suit. She was one of a thousand vessels that came to be managed by Nortraship in London and New York from April 1940; the major Norwegian contribution to the Allied war effort. The Bonneville (8,423 dwt) had been built by Odense Staalskibsværft in 1929 for A F Klaveness & Co, Oslo. She came to serve with Klaveness Line until 1941 when allocated for the North Atlantic supply line to Great Britain. It was here that Bonneville met her end in 1943. That winter had seen the worst weather in memory on the North Atlantic, with 116 days of continuous gale conditions. When convoy SC121 set out from New York for Liverpool at the end of February, no less than 26 German submarines were gathering in the mid-Atlantic. The Bonneville, being the commodore ship, was struck a torpedo at 2210 hours on March 9. There were only seven survivors of a crew of 41. Also the Swedish Milos was sunk in this convoy with the loss of 30 people on board.
106 Shipgaz No 2 2010
By Pär-Henrik Sjöström email@example.com
Picture: Håkan Sjöström
Sweden’s first state icebreaker With an output of 6,000 ihp the Swedish icebreaker Statsisbrytaren came second only to the Finnish Jääkarhu by the time of her delivery in 1929. The Statsisbrytaren (Swedish for State icebreaker) was built by Lindholmen in Gothenburg. Already during the design stage the alternative of dieselelectric machinery was seriously considered. However, the tenders proved that a diesel-electric machinery would become too expensive. The lack of experience from this type of machinery was regarded as another disadvantage. The newbuilding was therefore equipped with two conventional triple expansion steam engines in two separate engine rooms – one for the propeller in the stern and one for the propeller in the bow. Four oil fired Scottish type boilers were situated in the boiler room between the fore and aft engine room.
The new icebreaker was manned by the Swedish Navy. After she had left Gothenburg on the evening on February 4, 1929, the ice situation in the Stockholm archipelago deterioriated so fast that she had to steam
northward at full power. Two vessels had drifted with the ice into shallow water and went aground in the outer part of the Stockholm archipelago. The Statsisbrytaren saved their crews when she reached the area. Another vessel and a lightship were also in danger and were assisted into safer waters.
»The Atle saw a lot of action during her 40 years in service« After the renaming of Statsisbrytaren in 1930 the Swedish state icbreakers were named mainly after gods and persons in the Nordic mythology. Atle is an ancient Nordic interpretation of Attila – the king of the Huns.
During the severe winter of 1929 the Statsisbrytaren first assisted vessels on the Åland Sea together with Finnish icebreakers. In mid-March the situation on the Åland Sea eased and Statsisbrytaren freed some vessels that had been surprised by the ice and were trapped in the ports of Sundsvall and Husum. On May 25, the Statsisbrytaren could finally steam further north with destination Luleå. The icebreaking campaign of that year was not finished until June 9, when the Statsisbrytaren finally
sailed for Stockholm to be laid up for the summer season.
In 1930, when the second stateowned icebreaker Ymer was ordered, the Statsisbrytaren was renamed Atle. During her long service career the Atle saw a lot of action. Staffan Fischerström writes in his book Isbrytare that the winter 1955–1956 became the busiest ever for the icebreaker. Due to engine problems on both the Ymer and the Thule, the Atle was deployed to Luleå already on November 28, 1955. When the stronger Ymer was back in business the Atle was successively moved southwards and arrived on February 13, 1956 in Öresund. In March she and the Ymer traded places and the Atle steamed back to the Baltic Sea. She left Luleå for the summer lay up in Stockholm on May 29. After the very severe winter 1965– 1966 the weary Atle was taken out of service. The only ever steam-powered Swedish state icbreaker was broken up the year after.
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