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no. 1 2014 – 28th year corporate magazine for the Wilh. Wilhelmsen group

SPECIAL REPORT:

A NEW WAY OF WORKING

GREEN RECYCLING

FAREWELL TO TAMPA

BUSINESS PROFILE

18 KEYS TO THE BEST SEAFARERS

LEIF T LØDDESØL

A LEADER FOR ALL SEASONS

PEOPLE&PLACES

A HOUSE FULL OF HOPE


The CEO's letter

contents No 1 2014

04 MILESTONES

Published by: Wilh. Wilhelmsen Holding ASA Corporate communications NO-1324 Lysaker, Norway

10 CURRENT AFFAIRS

Publisher: Group vice president Benedicte Gude

EDITORIAL BOARD: Einar Chr Erlingsen Arild S Johannessen Benedicte Gude Naja Boone Solend Jørn-Even Hanssen Cecilie Heavens Editorial contributors: Arild S Johannessen Kaia Means Don Pyle Marianne H Wang Benedicte Gude

Design and layout: Redink AS www.redink.no Printer: TS Trykk, Printed on paper approved by The Swan, the official Nordic ecolabel. CIRCULATION: 8 000 copies Technical Publisher: Forlaget Media AS, NO-3110 TØNSBERG, Norway.

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44 EXPANDING NETWORK WSS has opened its first office in Senegal as a step towards a larger network in West Africa.

WW management teams have toured the globe to set the 2014 targets for their respective companies.

48 WW PROFILE It has been Leif T Løddesøl’s fate to lead in times of great changes and when dramatic events turned everything upside-down.

23 HR/OD What does a “performance culture” really mean?

24 TRAINEES ON TOUR

51 PEOPLE&PLACES

Three trainees went on board three ships and returned home much the wiser.

Visit The Captain’s House at Malta, rhinos in South Africa and long-serving colleagues in India.

28 FAREWELL TO TAMPA

55 RECRUITMENT The competition to recruit the best is fierce. Our response is “employer branding”.

A legendary ship has sailed her last voyage.

30 GREEN RECYCLING

56 eLEARNING A record 20 000 eLearning courses were completed by employees in 2013. In 2014 we expect to exceed this number.

Green recycling is the only option when a WW vessel retires.

32 A SMALLER IMPRINT

58 FOCUS ON ETHICS Governance, transparency, compliance and whistleblowing are some of the topics discussed in this article.

Average relative emissions from the WWL fleet are steadily decreasing and reached their lowest point ever in 2013.

60 YOUNG TALENT

34 ANOTHER “FIRST EVER”

Meet Cynthia Chan, senior ships agency coordinator in Hong Kong.

MV Tarago was the first vessel to have a multi-stream scrubber installed and first again when an underwater thruster replacement was performed. Wilhelmsen Marine Personnel now employs 10 200 mariners, the highest number ever.

The new PCTCs represent a unique new hull design.

TO ACHIEVE OUR GOALS for 2014 we need to focus

on profitable growth, maintaining high business standards and leadership. Tomorrow’s growth will be financed by what we earn today. The current market is tight, so we need to redouble our efforts to provide the customers with the right solutions at the right price, delivered through a lean and efficient network. We are a long-term player with strong faith in our portfolio. We enjoy the peaks but should also be able to handle the occasional valley. Business efficiency was a major topic in 2013. Wilhelmsen Ships Service updated its organisational structure and business matrix for more efficiency and better teamwork. Similarly, Wilhelmsen Maritime Services, Wilh. Wilhelmsen ASA and Wilh. Wilhelmsen Holding carried out an initiative to streamline their decision-making processes. Most of our growth going forward will be achieved by winning more business. We will however continue to seek investment opportunities that are related to shipping and maritime services as well as other maritime segments, supplementing the existing investments in Qube and the NorSea group. Business standards are an important part of this because they make us unique and support our vision of shaping the maritime industry. A revised Code of Conduct and several related group policies are available on GIMS. Please familiarise yourself with them and take them on board. An internal compliance campaign will be carried out this year as a follow up measure. The Engagement Survey in May 2013 showed that we are engaged in our work and are proud to be part of the Wilhelmsen team. At the same time it showed that we have a way to go when it comes to driving performance. To have a dynamic, customer focused organisation we need strong leadership capable of defining direction and expectations. This is the shape of 2014: Profitable growth earned by competent, motivated people in an efficient organisation and backed by solid business standards. Welcome to a new and challenging year!

62 THE WORLD AS I SEE IT Chris Connor, new president and CEO of WWL had to face some changing perspectives during 2013.

36 BUSINESS PROFILE

38 NEW GENERATION

2 WWWORLD 1 2014

24

Dear all,

WWL ALS has for two decades provided logistics support on site at Komatsu’s UK manufacturing base.

12 SPECIAL REPORT

Editor: Einar Chr Erlingsen

Martin Avery Jane Christie-Smith Einar Chr Erlingsen Karin T Erlingsen David Hopkins

What does it mean to be ”the shaper of the maritime industry”? Group CEO Thomas Wilhelmsen shares his thoughts with our readers.

40 A LASTING PARTNERSHIP

40

36

64 HISTORIC CORNER We look into the background of Wilhelmsen Maritime Services – the shaper of the maritime industry.

Thomas Wilhelmsen Group CEO WWWORLD 1 2014 3


186,500

WWmilestones Pipe logistics: The NorSea Group has decades of experience from pipe handling and logistics from the North Sea. Now the group has taken a strategically important step across the globe to Australia. (Photo: Kaia Means)

tons of sulphur emissions saved over the past 12 years as a result of WWL’s global low sulphur policy

2%

‘Increased flexibility and more visible brands, but still very much recognizable,’ says project coordinator Cecilie A Heavens about Wilhelmsen Technical Solutions’ “new look”. Text and photo: Håvard Solerød

The NorSea Group has signed a contract with Saipem in connection with the laying of a 882 km long pipeline from the Ichthys field in the Timor Sea to a new LNG plant in Darwin.

Nils P Dyvik, group CFO, Wilh. Wilhelmsen Holding

Australia: ‘This is an import­ ant breakthrough for the NorSea group,’ says Nils P Dyvik, group CFO in Wilh. Wilhelmsen Hold­ ing ASA (WWH). ‘It is exciting to see that NorSea’s strategic am­ bition of becoming a leading international supplier of base services and integrated logis­ tics is paying off. We expect the group to have a strong global footprint in the time to come,’ says Mr. Dyvik. Close cooperation with Wil­­ helmsen Ships Service in

Indonesia is the key to the strategi­ cally important Saipem contract, according to Stig Holgersen, man­ ager of the Nor­Sea Group’s project department. His department will be responsible for the planning and implementation of tranship­ ment, storage and unloading of up to 72 000 pipes on West Timor, Indonesia. The pipes have a diameter of about 1.2 metres, are 12.5 metres long with an average weight of 16.9 tonnes. Pipe laying is scheduled to start in the second quarter of 2014.

‘WTS was established three years ago. Normally a company design should last longer than that. Previously, new brands had to be fitted into a rather complicated set of symbols. Our new profile allows us to communicate both better and faster. The labelling of our business streams has also changed. One example: what we labelled Power was called Electrical Automation by our customers. It’s now been changed to Electrical Automation to be more in line with our customers’ approach,’ says Heavens. ‘Our network has reported feedback from customers. This was the main reason for making the brand names more visible,’ adds Heavens.

Korea: EUKOR Car Carriers have signed the ship management contract for entrusting their five new PCTCs to WSM. The new Panama Canal will be completed in 2014, and WSM Korea will thus be amongst the pioneers to be crossing the newly renovated canal with a Post Panamax PCTC. The first vessel, MV Morning Capo was delivered in October 2013, followed by Morning Chant, Morning Post, Morning Pilot and Morning Pride.

Partners: Young-Cheol Noh (left), senior vice president quality (EUKOR) and Sanjay Tyagi, managing director Wilhelmsen Ship Management, Korea shake hands on the new contract between their respective companies. inkludere bildetxt i tekst?? (Photo: EUKOR)

Determined runners: Mathias Johansson, Helle Nordhagen and Maren Hjorth.

Sweating for a good cause NorSea Group

34 new ships

➜➜Established 1965

Wallenius Wilhelmsen Logistics and EUKOR are in the

➜➜Core business: Supply base and

logistics solutions to the oil and gas industry ➜➜Operates from nine supply bases along the Norwegian coast. A new base was established in Scrabster, Caithness, Scotland in April 2013 ➜➜Owned 35.4% by WWH ASA since June 2012

middle of an extensive newbuilding program. 34 new ships will have joined their combined fleets during the period 2011-2016. 22 new ships, mainly PCTCs and LCTCs, in addition to four ro-ro vessels were delivered to owners Wallenius (5), Wilhelmsen (7) and EUKOR with partners (10) before December 2013. An additional twelve ships are in the order books for delivery before February 2016: 1)

4 WWWORLD 1 2014

4

is the number of streams, or approaches, in WWL’s new sulphur compliance program1)

Wilhelmsen Ship Management Korea has been awarded the first post panamax PCTCs to be delivered to EUKOR end 2013 and 2014.

New WTS profile to increase visibility

Breakthrough for NorSea in Australia

9

consecutive years in which WWL has maintained their global 1.5 percent average sulphur policy

WSM Korea wins five EUKOR contracts

More visible brands: WTS project coordinator Cecilie A Heavens with some examples of the new design.

Oslo, Norway: “Aha, Unitor, that’s you!” The comment could be heard repeatedly at the Core Marine exhibition, where WTS’ updated profile was externally exposed for the very first time. Unitor and other brand names under the WTS umbrella have clearly become a lot more visible through the new design. ‘Design flexibility makes it easier to communicate and allows us to take advantage of our valuable brands such as Callenberg and Unitor. We recently bought Maritime Protection; now it can be reflected right away in our company profile. This improvement is partly in response to customer feedback,’ says Cecilie A Heavens, adding that the new look is more an upgrade than a revolution.

2 percentage reduction in CO2 emissions compared to 2011

On Friday 11 October 2013, the first ever WIL (WW’s in-house sports club in Norway) charity climb event took place at the main office. 88 people raised a total of NOK 38 155 by climbing 85 250 steps in support of SOS Children’s Villages!

File number: 5663 File Name: SOU-1959 Torrens deck.tif Owner: Anna Larsson

Oslo, Norway: We were met by a very unusual sight that Friday. People were milling about the stairways, some all sweaty with pink cheeks running, whilst others moved more slowly, but with determination. Climbing the stairs from the ground floor up to the top, then moving from the north wing to the south wing and then down all the stairs to the ground floor again - that really takes

some strong legs and motivation! We hope that the WIL charity climb will be an annual tradition. The challenge was to climb as many laps as possible within 30 minutes. The employee him-/herself donated NOK 15 (approximately 2 USD) per lap, and the amount was met by both WIL and WW. Effectively the charity received 6 USD per lap.

(Source: Wallenius Wilhelmsen Logistics’ Environmental Sustainability Report for 2012) WWWORLD 1 2014 5


8,2'

WWmilestones

Creating long time shareholder value

O

Thomas Wilhelmsen, group CEO, gave an update on the group's performance. He mentioned that the market has been rough for some time, but underlined that the group is well positioned in its markets and that the underlying growth potential is positive. Mr Wilhelmsen underlined that organic growth and operational efficiency will be most important going forward. The group will

Bjørge Grimholt, president in WSS, gave a thorough presentation of Wilhelmsen Ships Service. In addition to presenting the com­ pany's five business streams, Mr Grimholt mentioned how WSS differentiates itself from the competitors, market characteris­ tic and WSS’ market position. Further, he focused on how new regulations open up for product development, mentioning the potable water test kit as an example. Maurice James, managing director in Qube, gave a comprehensive presentation of WWH's investment in the Australian logistics company Qube. The company aims at being Australia's leading provider of integrated logistics solutions focused on import and export supply chain activities. With some 3 800 employees, the company is divided in two main business segments: port&bulk and logistics. Operating out of almost 30 ports in Australia, Qube is the largest stevedore for

automotive, break bulk and bulk operations. Mr James expects continuing Qube's record of delivering revenue growth and increased earnings.

Antwerp, Belgium: Andrew Sheriff, business director safety at WSS said at the opening of the new FRS (fire, rescue and service) centre and safety training academy that it will allow his company to focus on specialised training alongside the ongoing development of safety technicians. The centre will also run a welding training program focusing on safe use of welding equipment and systems, as well as good welding practice. Roger Gundermann, WSS regional safety training manager said: ‘The port of Antwerp is one of the largest and most central in Europe. Our safety and technical services are already in great demand and we expect this new facility to quickly become a centre of excellence, further complementing our European FRS offer.’ WSS runs 98 safety service offices globally and carries out 21 000 safety services annually. It also operates 42 Liferaft Exchange (LRE) stations supporting over 1 000 key ports.

Oslo, Norway: Kai Kraass has taken on the position of COO Land Based and Fridtjof Næss the position of COO Ocean, following a decision in Wallenius Wilhelmsen Logistics (WWL) to split the former role of chief operating officer. One of the main reasons for the split is that the characteristics of WWL’s Ocean and Land Based businesses are very different. While Ocean is decidedly global in nature, Land Based is characterized by dynamics that are in many cases unique to each location. WWL’s position and performance will be strengthened by having one senior executive focusing on each area.

Training academy: Liferaft training is one among many training aspects being offered at the new FRS centre and training academy in Antwerp, Belgium. (Photo: WSS) Andrew Sheriff, business director safety. (Photo: WSS)

Caterpillar contract renewed

Per Brinchmann, vice president in Wilh. Wilhelmsen ASA (WWASA), said that one game changer for the industry is the devel­ opment of environmental regulations. He gave a presentation covering among others new environmental regulations and how WWASA works to handle them, the potential cost impact and how it affects future vessel design.

Wallenius Wilhelmsen has sealed a new agreement with Caterpillar that will operate until 2016. This is a major milestone for WWL after the record year enjoyed with Caterpillar in 2012 on both the ocean and technical services side of the business. Although under constant threat of a bid, the contract was successfully concluded through direct negotiations with the Caterpillar Global Procurement Team. Due to a depressed mine sector, challenges on overall volumes are likely to continue for Caterpillar into 2014. However, WWL’s CAM team maintains a positive attitude that when the market returns WWL will be in a great position in its renewed partnership with Caterpillar.

Kai Krass, chief operations officer in Wallenius Wilhelmsen Logistics (WWL), underlined the need to focus on operational excellence, cost control and continuous improvement as a key to future success. WWL's operational excellence programme named GO+10 includes initiatives related to tonnage allocation, speed and scheduling, port rationalisation, non-steaming time, ves­ sel utilisation and competence development. 1)

6 WWWORLD 1 2014

16

16 million is the number of cars predicted to be sold in the U.S. in 20141)

Separation of Ocean and Land Based Operations

The opening of safety service facilities around the world will play a vital role in the growth of Wilhelmsen Ships Service (WSS).

For an investor rising value of the share and dividend are important when choosing where to invest their money.

however also be looking for good investment opportunities to grow the group further.

80%

In the future analysts expect that more than 80% of the autos sold globally will be some kind of hybrid. This is equal to a compound annual growth rate of 4.4% which is well above the forecasted global growth rate of 3.7%

New safety training academy opened

Capital Markets Day 2013

slo, Norway: Having an active dialogue with our investors, ana­ lysts, banks and other financial stakeholders is important to make sure our investors and lenders understand how our business is conducted, how we achieve our results and not least how we expect to perform going forward. We invite the financial market to quarterly presentations where we present our finan­ cial performance and once a year they are invited to a capital markets day, where our ambition is to give a more in-depth knowl­ edge of what we do. The 2013 programme included five main presentations:

The number of cars sold in South America are expected to grow to 8.2 million units per year by 2020

Bildene fra fotobanken: Kan de brukes? Skal de krediteres? Det er de merket File number:....

(Source: Wallenius Wilhelmsen Logistics/Venture magazine) WWWORLD 1 2014 7


WWmilestones Good team: ‘As Qube’s second largest shareholder, WW has proven a stable supporter. I see many joint opportunities for us in the Australian market,’ says Maurice James (centre), managing director of Qube Logistics. Here with CFO Nils Petter Dyvik (right) and Aage Holm, vice president finance and investor relations in Wilh. Wilhelmsen Holding

New chair in WWL

A very successful investment

Qube Holdings Ltd represents one of WW’s most successful investments in recent years. Managing director Maurice James relates how his company became Australia’s leading provider of integrated import and export logistics solutions. Text and photo: Arild S Johannessen

Oslo, Norway: WW’s invest­ ment in four companies that were later to become part of Qube dates back to 2007. When Qube was listed on the Australian Securities Exchange in September 2011, WW’s in­ vestments were converted into 88 million shares in the new company. Since then, Qube’s income, results and share price have increased significantly. Through later sale of 22 million shares and dividend received, WW has recovered its initial investment while still holding 66 million shares and a 7.1% ownership. How is this possible?

8

provider of integrated import strategic focus to grow by invest­ This is Qube and export logistics solutions, ing in the national import and employing close to 4,000 peo­ export supply chain, moving ple. Qube has also completed goods in and out of Australia’, ➜➜Qube Holdings Ltd is a diversified a number of initiatives and ac­ says Maurice James. logistics and infrastructure quisitions to establish a strong company with operating divisions foundation for continued longNew innovations. An increas­ providing logistics services for term growth. One example is ing proportion of Qube’s invest­ clients in both import and export Qube’s railroad operations, ments is targeted at expanding cargo supply chains. including 80 engines and 800 the capacity to provide logistics ➜➜Qube Ports & Bulk provides a railway trucks. Qube has also solutions for the rural and bulk diverse range of integrated port made substantial investments in commodities sector. With the services, bulk material handling terminals and development pro­ introduction of higher environ­ and bulk haulage. jects in Sydney and Melbourne, mental standards for the han­ ➜➜Qube Logistics is the largest dling of mineral concentrates and offers integrated logistics integrated third party container and ores, a need has emerged services in 29 Australian ports. logistics provider in Australia. for a vessel loading solution ‘We are very pleased with the ➜➜Qube Strategic Assets are growth and the way our recent that eliminates fugitive dust and investing in and developing future acquisitions have been embed­ product spillages and minimises infrastructure. Growing fast. The main rea­ ded into our organisation. Last cleanup costs. One solution that ➜➜More on Qube at: http://www. son is Qube’s strong growth. year, our revenue and profit Qube has invented to comply qube.com.au/ growth was 35% and 62%, re­ with these new regulations is Just two years on, the company spectively. We maintain our has become Australia’s leading the Rotabox rotating container, which keeps the cargo capsulated under transport. WWWORLD 1 2014 ‘We are proud of our “Mine-to-port solutions”. They are both environmentally friendly, reducing loss of cargo and lowering capital costs for our customers. As an integrated logistics provider we now offer 70 different regional rail services a week to ports across Australia’, says Maurice James.

The team: (front row, from the left) Øyvind Krapf-Sterner (now working for WSM), Einar Stenberg (finance manager), Wenche Snekkenes (broker), Eivind Killengreen (claims manager liability/broker), Christine Nummedal (broker assistant) and Heidi Skarsten (office assistant). Second row, from the left: Annika Kättström (insurance manager/broker), Svein Bratager (claims manager marine), Marthe Romskoug (general manager) and May N Jørgensen (broker). Not present: Solveig Gromholt (broker assistant), Ellen Strand (accounting/claims assistant) and Dawn Cappelen (office assistant). (Photo: Kaia Means)

Celebrating the first 25 years Wilhelmsen Insurance Services has come of age, celebrating its first 25 years. Oslo, Norway: We might not all agree, but insurance is great fun! That is, if we believe general manager Marthe Romskoug and her ten colleagues at Wilhelmsen Insurance Services (WIS). During the years, WIS has always delivered sound financial results. More important however, are the savings for the Wilhelmsen group and our external clients through loss prevention initiatives by WIS. Marthe Romskoug is full of praise of her colleagues. ‘Over the years, we’ve had a lot of talented people working for WIS. Today we are 11, and in my mind we have never had a stronger team in Wilhelmsen Insurance Services.’

New office opened in Western Australia Wilhelmsen Ships Service (WSS) adds Geraldton to its extensive service network in Western Australia to meet increased business opportunities. Geraldton, Australia: ‘The port

continues to grow, and by opening a new office we are putting ourselves in a strong position to provide ship owners with easy access to our globally-renowned agency services. In addition, we are opening up local and international trade links, supported by our industry-leading governance, quality accreditation and high standards of customer service,’ says Michael Connolly, WSS general manager for Western Australia. The new office has been operational from day one, with a number of experienced local staff on hand to utilise existing relationships with the port. Connolly continues: ‘Since the opening we have received much positive response from customers and have quickly built business with local shippers, transport companies and stevedores.’

New office: Wilhelmsen Ships Service is next door neighbour to Giacci, a Qube company, where Wilh. Wilhelmsen Holding is a shareholder. The WSS employees in the photo are (from the left) ship agency manager Travis Bettesworth, operator Paul Anderson and service operator Trent Bailey. (Photo: WSS Geraldton)

The port of Geraldton is located 424km north of Perth. The port has expanded rapidly from 5 Mtpa (million tonnes per annum) five years ago to reach 10 Mtpa in recent times and has forecasts to reach 15Mtpa in 2014.

Håkan Larsson has replaced Leif T Løddesøl as chair of Wallenius Wilhelmsen Logistics (WWL) and has also been appointed chair of the joint steering committee for the ship operating companies owned by Wilh. Wilhelmsen ASA ans and Wallenius Lines (WWL, EUKOR Car Carriers and American Shipping and Logistics group). Larsson will also become member of the board of EUKOR starting 1 January 2014. Håkan Larsson has many years of experience from global logistics, and he has held the position of president and CEO of amongst others Schenker and Transatlantic. He is chair or board member of several global logistics and engineering companies.

Ocean Exchange award winners ECOsubsea became this year’s winners of the Wallenius Wilhelmsen Logistics’ Orcelle® Award and USD 100 000 for their ecological method of underwater hull cleaning. Savannah, USA/Oslo, Norway: The two winners of The Ocean Exchange 2013 were announced in October, including the winner of WWL’s Orcelle® Award, ECOSubsea. ECOsubsea has developed technology that allows ship owners to clean their vessels in an environmentally responsible way while in port and conducting cargo operations. The ECOsubsea hull-cleaning system meets the key challenges that include: high collection rate of bio-fouling debris; preservation of vessel coating during cleaning; and safer operation through greatly reducing the need for divers. Christopher Connor, WWL President and CEO, congratulated the winner saying ‘the appeal of this solution is how it combines an environmental benefit with a commercial incentive.’ The Gulfstream Navigator Award went to WITT Limited for their device to convert natural energy into usable energy.

WWWORLD 1 2014 9


current affairs

how to be a shaper

The group’s vision of shaping the maritime industry is quite unique. What does the shaper message mean to you? Where does this aspiration lead? Group CEO Thomas Wilhelmsen shares his views with our readers.

We want to be seen as a company that delivers value and is in compliance with rules and regulations. thomas wilhelmsen

Text: Don Pyle

Oslo, Norway: Being a shaper means being a pioneer, intent on leading and innovating, on meeting the ever-changing needs of our customers and other stakeholders. It’s an ex­ pression of our desire to be at the forefront of developing the maritime industry. The shaper vision is linked to the direction we set for ourselves and our business areas. It gives us a special way of operating our global business, a way that focuses on qual­ ity, good business standards and delivering value to the customers. It differentiates us from the others. You do not have to be the biggest to be a shaper, but you have to be a bit unique. I believe we are. In the long term I believe WW will remain a maritime company with an industrial/service profile. Our platform for long-term develop­ ment is based on shipping, represented by Wilh. Wilhelmsen ASA and maritime ser­ vices, represented by Wilhelmsen Maritime Services. These will be nurtured and further developed. We will focus on segments where we can make a difference. The difference can for example be having the largest industrialised network, being a significant international player or being a leader in business practices or environmental commitment. Q: What is the group’s philosophy regarding growth? A: Our growth in recent years has reflected 10 WWWORLD 1 2014

the fluctuating market. When the market, funding capacity and external factors all look good, we put our foot on the gas pedal. When things cool down, we apply the brakes. In recent years we have been forward-leaning and dynamic regarding organic growth and conservative regarding mergers and acquisi­ tions. Our NorSea investment in 2012 was based on the strategy to be more active in the energy sector and a conviction that we can add value as an active investor because of our competence. This conservative approach in recent years has resulted in a historically high equity po­ sition of 47%. That’s great, but it also poses a new challenge: the better our equity posi­ tion gets, the tougher it is to achieve a high rate of return on equity. It’s a trade-off. Wilh. Wilhelmsen Holding Invest will keep us renewed and forward-looking by continu­ ing to be a springboard for opportunities in the marine and logistics markets where we have a lot of competence and goodwill. Q: You are a champion for excellent business standards. Where is this focus coming from? A: There are a number of things driving the need for excellent governance and business standards. Firstly, WW is a large industrial group with the world’s largest maritime net­ work and global customers. We cannot run such an organisation the same way we might operate an office in Oslo. We need to have a

common framework based on best practices that transgresses borders and cultures and joins everyone together with a system of goals and values. A second driver is the need to have and protect our global brand. Our name is our brand, and we have a long and proud history that we want to protect and build. We can­ not safeguard our brand without excellent governance and business standards. Last but not least is the fact that the world is changing all the time. We want to continue to be good corporate citizens, and we want to stay in the forefront of what concerns our customers as well. We want to be seen as a company that delivers value and is in com­ pliance with rules and regulations. Q: The WW group serves many types of customers, from auto and heavy equipment manufacturers to ship owners and shipyards. What message would you like to convey to all these customers at the start of a new year? A: My message is that we are very grateful for all the constructive feedback our customers give us. Their suggestions and perspectives give us the chance to improve and do a better job for them, developing better solu­ tions that give real savings and also protect the environment. I also wish to thank our customers for the opportunity to provide for their requirements and for continuing to do business with us! WWWORLD 1 2014 11


special report

A new way of working

Being a true “shaper of the maritime industry�, Wilhelmsen Maritime Services has increased its revenues tenfold in less than a decade. We have faced a tough market in recent years and we have worked hard within our existing structure to increase our efficiency. However, the time has come to change the structure, how to work together and how to continue growing our business profitably.

12 WWWORLD 1 2014

WWWORLD 1 2014 13


special report

Pride in own organisation WSS president Bjørge Grimholt is proud of his company these days, and its ability for swift action when implementing “a new way of working”.

WSS’ new matrix organisation has

been brewing in president Bjørge Grimholt’s head for the last couple of years. However, on a background of comprehensive cost cutting actions to meet the challenges of a falling market throughout 2012, it was not until late 2012 that the central management team started in earnest to consider a new company structure and its implementation.

Managers on world tour

What are our main priorities for 2104? How can we work more efficiently and improve information sharing and decision-making, so that we can serve our customers even better? Management teams from Wilhelmsen Ships Service, Wilhelmsen Technical Solutions and Wilhelmsen Ship Management have toured the world to create a new drive within their respective organisations.

GLOBAL PERSPECTIVE: A major perspective brought into the discussions by WSS president Bjørge Grimholt was the global one, i.e. how to break down silos in favour of a more global business model.

In Amsterdam Einar Chr Erlingsen (text) and Ruud De Groot (photos)

A

Travelling managers: The WSS central management team in Amsterdam, at the beginning of their world tour. From the left: Bjørge Grimholt (president), Mette U Bakke (vice president IT & CIO), Knut Brathagen (vice president ships agency & maritime logistics), Thomas Smordalen (vice president global sales & marketing), Kjell André Engen (vice president marine products), Leona Geilvoet (head of OD), Rune S Pedersen (vice president HR/OD) and Terje Borkenhagen (vice president technical services).

14 WWWORLD 1 2014

msterdam, The Netherlands: For Wil­ helmsen Ships Service’s (WSS) Central Management Team this was the first stop on a tour that for the next four weeks would take them around the world; to Houston, to Dubai and Kuala Lumpur. At each location they teamed up with the regional management teams and local general managers. Similar sessions had already been held within their WMS “sisters” Wilhelmsen Ship Management and Wilhelmsen Technical Solutions. Before the process was over, some 200 central, regional and local managers had travelled thousands of kilometres and spent a combined effort of at least three man-labour years. Each year, a similar procedure is followed when working on the participants’ Annual Operating Plans (AOPs). But this year it was different: it was time for an in-depth presen­ tation of and understanding for “a new way of working”. For the WSS managers who came together in Amsterdam, Houston, Dubai and Kuala Lumpur it also meant being introduced to their company’s new matrix organisation, its “why’s and how’s”. Sufficient information had been shared prior to the first meeting to create an expect­ ant atmosphere in the meeting room. 18 of those present were experienced GMs from their respective countries, sharing many of the same challenges in their daily opera­

tions and decision-making processes. After a decade of strong growth, both organic and through acquisitions, time was ripe for a new look at how to work together in the future. From local to global. A major perspec­ tive brought into the discussions was the global one, i.e. how to break down silo thinking in favour of a more global business model. ‘Growth creates its own challenges,’ said WSS president Bjørge Grimholt during his introduction. ‘To address them is very much a question of internal structure and resources. WSS consists of many small, ­local businesses, but we are a global company experiencing increased demand from global customers. They expect us to deliver the same quality service and products wherever needed. As a global player, we must make sure that this is something that we can deliver. We are selling a global experience, not a large number of “local dishes”. Being a global supplier enables us to expand in the world’s growth areas, rather than acting on purely local business opportunities,’ Mr. Grimholt said. “Empowerment” is one of the WW values, and a key word to describe how the WSS president expects his colleagues to work in the future. ‘We will focus on making sure decisions are made at the right level and as close to the

Driven by market demand. With an increasing demand for global structures and solutions from clients, the shortcomings of the existing organisation became more and more visible. WSS faced several challenges: There were no clear counterparts in the network for the global business streams that were responsible for existing and new products and services. Initiatives or challenges were too often pushed upwards to the president or central management team for decisions, including many that could have been solved at a lower level. This was mainly due to unclear roles and responsibilities. There was also an obvious shortage of specialist competence and capacity, and too many organisational levels. Short timeline. ‘The only way to implement comprehensive changes is to do it swiftly,’ says Mr. Grimholt. Thanks to a lot of great work by many people, the new structure was ready to be launched at the end of August, and the whole organisation was informed about the new structure and the main steps to come. The global HR/OD team took charge in the coordination of the extensive process that followed, including recruitment & selection of key positions, signing of contracts etc. Most of the key personnel were in place before the end of September and on 1 October 2013, the new matrix organisation had replaced the former company structure. ‘I’m extremely impressed by the attention to detail, our organisation’s ability to work across geographies and to deliver on our implementation timeline in this project. If we can replicate what we did in this project on external activities in the future, I don’t think anyone will be in a position to beat us. This is really what the new matrix structure is all about; getting the quality right, increasing speed in implementation and cutting down time-to-market,’ says the WSS president. ‘Although we have drawn up a new structure and have new resources in place, this is where the job really begins. It’s up to each one of us to create the dynamics within our new matrix and make it work to our advantage,’ says Bjørge Grimholt.

WWWORLD 1 2014 15


special report Travelling managers: The WSS central management team in Amsterdam, at the beginning of their world tour. From the left: Bjørge Grimholt (president), Mette U Bakke (vice president IT & CIO), Knut Brathagen (vice president ships agency & maritime logistics), Thomas Smordalen (vice president global sales & marketing), Kjell AndrÊ Engen (vice president marine products), Leona Geilvoet (head of OD), Rune S Pedersen (vice president HR/OD) and Terje Borkenhagen (vice president technical services).

Managers on world tour

What are our main priorities for 2104? How can we work more efficiently and improve information sharing and decision-making, so that we can serve our customers even better? Management teams from Wilhelmsen Ships Service, Wilhelmsen Technical Solutions and Wilhelmsen Ship Management have toured the world to create a new drive within their respective organisations. In Amsterdam Einar Chr Erlingsen (text) and Ruud De Groot (photos)

12 WWWORLD 1 2014

WWWORLD 1 2014 13


special report

Pride in own organisation WSS president Bjørge Grimholt is proud of his company these days, and its ability for swift action when implementing “a new way of working”.

WSS’ new matrix organisation has

been brewing in president Bjørge Grimholt’s head for the last couple of years. However, on a background of comprehensive cost cutting actions to meet the challenges of a falling market throughout 2012, it was not until late 2012 that the central management team started in earnest to consider a new company structure and its implementation.

A new way of working

Being a true “shaper of the maritime industry”, Wilhelmsen Maritime Services has increased its revenues tenfold in less than a decade. We have faced a tough market in recent years and we have worked hard within our existing structure to increase our efficiency. However, the time has come to change the structure, how to work together and how to continue growing our business profitably.

GLOBAL PERSPECTIVE: A major perspective brought into the discussions by WSS president Bjørge Grimholt was the global one, i.e. how to break down silos in favour of a more global business model.

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msterdam, The Netherlands: For Wil­ helmsen Ships Service’s (WSS) Central Management Team this was the first stop on a tour that for the next four weeks would take them around the world; to Houston, to Dubai and Kuala Lumpur. At each location they teamed up with the regional management teams and local general managers. Similar sessions had already been held within their WMS “sisters” Wilhelmsen Ship Management and Wilhelmsen Technical Solutions. Before the process was over, some 200 central, regional and local managers had travelled thousands of kilometres and spent a combined effort of at least three man-labour years. Each year, a similar procedure is followed when working on the participants’ Annual Operating Plans (AOPs). But this year it was different: it was time for an in-depth presen­ tation of and understanding for “a new way of working”. For the WSS managers who came together in Amsterdam, Houston, Dubai and Kuala Lumpur it also meant being introduced to their company’s new matrix organisation, its “why’s and how’s”. Sufficient information had been shared prior to the first meeting to create an expect­ ant atmosphere in the meeting room. 18 of those present were experienced GMs from their respective countries, sharing many of the same challenges in their daily opera­ 14 WWWORLD 1 2014

tions and decision-making processes. After a decade of strong growth, both organic and through acquisitions, time was ripe for a new look at how to work together in the future. From local to global. A major perspec­ tive brought into the discussions was the global one, i.e. how to break down silo thinking in favour of a more global business model. ‘Growth creates its own challenges,’ said WSS president Bjørge Grimholt during his introduction. ‘To address them is very much a question of internal structure and resources. WSS consists of many small, ­local businesses, but we are a global company experiencing increased demand from global customers. They expect us to deliver the same quality service and products wherever needed. As a global player, we must make sure that this is something that we can deliver. We are selling a global experience, not a large number of “local dishes”. Being a global supplier enables us to expand in the world’s growth areas, rather than acting on purely local business opportunities,’ Mr. Grimholt said. “Empowerment” is one of the WW values, and a key word to describe how the WSS president expects his colleagues to work in the future. ‘We will focus on making sure decisions are made at the right level and as close to the

Driven by market demand. With an increasing demand for global structures and solutions from clients, the shortcomings of the existing organisation became more and more visible. WSS faced several challenges: There were no clear counterparts in the network for the global business streams that were responsible for existing and new products and services. Initiatives or challenges were too often pushed upwards to the president or central management team for decisions, including many that could have been solved at a lower level. This was mainly due to unclear roles and responsibilities. There was also an obvious shortage of specialist competence and capacity, and too many organisational levels. Short timeline. ‘The only way to implement comprehensive changes is to do it swiftly,’ says Mr. Grimholt. Thanks to a lot of great work by many people, the new structure was ready to be launched at the end of August, and the whole organisation was informed about the new structure and the main steps to come. The global HR/OD team took charge in the coordination of the extensive process that followed, including recruitment & selection of key positions, signing of contracts etc. Most of the key personnel were in place before the end of September and on 1 October 2013, the new matrix organisation had replaced the former company structure. ‘I’m extremely impressed by the attention to detail, our organisation’s ability to work across geographies and to deliver on our implementation timeline in this project. If we can replicate what we did in this project on external activities in the future, I don’t think anyone will be in a position to beat us. This is really what the new matrix structure is all about; getting the quality right, increasing speed in implementation and cutting down time-to-market,’ says the WSS president. ‘Although we have drawn up a new structure and have new resources in place, this is where the job really begins. It’s up to each one of us to create the dynamics within our new matrix and make it work to our advantage,’ says Bjørge Grimholt.

WWWORLD 1 2014 15


special report

We’re not only changing the organisation structure, but we also have to change how we think, how we relate to each other and how we work. bjørge grimholt

Profitable growth is still a main priority With a literally flat revenue development from the year before, WSS managed to get back to the target profit margin in 2012, mostly due to a lot of hard work by everyone combined with a global profit improvement programme.

markets and the customers as possible. We have competent leaders locally, each with their defined responsibilities who will en­ sure consistent quality services are delivered according to the processes we have defined in all the markets we operate. To create understanding and commitment to the new way of working, as well as the right mind-set for the matrix to work effectively, several workshops were arranged during the three-day-long meeting. Familiar issues from the GMs daily work were presented to the participants, who then were challenged to discuss who should be involved in each step of the process from an issue is launched to a decision has been reached. Ground rules. The WSS president also ­introduced a new set of ground rules for how he wants his managers to work together as team members. ‘You are all part owners of all issues, not only those that are directly related to your own defined responsibilities,’ he said, before listing up the rules: ➜➜ A lways assume positive intent from your counterparts ➜➜Give honest, direct and constructive feed­ back with the aim to improve ➜➜Discuss problems and issues – not people ➜➜If there is an issue – deal with it ➜➜We all get our say, not necessarily our way ➜➜Silence equals agreement ➜➜Once we agree, we all speak with one voice Main benefits. The WSS president expects the new matrix organisation to bridge the gap between management and main mar­ kets, to improve WSS’ ability to optimise, and to drive revenue growth. He also ex­ pects improved cash flow, better and faster 16 WWWORLD 1 2014

decisions and implementation, increased innovation, reduced silo-thinking and even better service for global customers. ‘What we have been doing on this world tour is to begin creating a matrix mindset in the heads of our managers. We’re not only changing the organisation structure, but we also have to change how we think, how we relate to each other and how we work. There will be more specialist competence and sup­ port closer to the market, with each business stream now having both central and regional teams and resources.’ Will deliver. Mr. Grimholt is impressed by the pride that he has observed wherever he has travelled during the last couple of years: ‘People are proud of being members of the WW group. In my mind, this is the result of many years of good work. Pride is not to be taken for granted. You must live like you preach, from top management and down. We have introduced “a new way of working”. To really make it work is now up to every one of us, leading by example. The changes we have made have created a lot of expectations – and be sure, we will deliver.’

What is a matrix organisation? Matrix management is the practise of managing ­individuals with more than one reporting line (in a matrix organization structure), but it is also commonly used to describe managing cross functional, cross business group and other forms of working that cross the traditional vertical business units – often silos - of function and geography.

Amsterdam: ‘This was no small feat in a falling market’, said Wilhelmsen Maritime Services’ (WMS) president Dag Schjerven at WSS Region Europe’s annual AOP meeting. He underlined the importance of continuous focus on profitable growth, efficiency optimisation and governance compliance.

New matrix equals a clearer picture Who is to deal with which issue, who makes the final decision? And how do we work together? These are all central issues embedded in Wilhelmsen Ships Service’s new matrix organisation.

NEW MATRIX: The business streams now have their clear counterparts within the WSS network structure, according to Leona Geilvoet and Rune S Pedersen.

‘The market is at a 22 year low in most shipping segments,’ says Mr. Schjerven. He didn’t expect much help from market growth in 2014, although there are some signs of slow recovery in Europe, Japan and the US, while China and India are still expected to be the world’s main growth engines. Nevertheless, profitable growth will still be of great importance. Mr Schjerven drove home his point by saying that WMS’ profit would be “eaten up” by inflation after only four years unless the business areas are able to be more efficient and/or start to grow at a higher rate than inflation. We did it! WSS president Bjørge Grimholt was equally satisfied by the results delivered in 2012: ‘They were mainly achieved through hard work and cost cutting in a falling or flat market. Many said it would be impossible to get back to the targeted profit margin – but we did. We are actually doing quite well in a very tough market, thanks to impressive work by many, but this is not the time to “rest on our laurels”. Growth will be our main challenge for 2014. The market being what it is; there is not much we can do about that. What we can do however, is work hard on increasing our market share. We have great people who are dedicated, and services and products that are in demand. Now we also have a much better organisational structure and many identified improvement areas internally that are independent of the market. Our potential is fantastic, the opportunities are there, its up to us to grab them,’ Mr. Grimholt said.

msterdam: Vice president HR/OD Rune S Pedersen and head of OD Leona Geilvoet have travelled with the other members of the WSS central management team to pre­ sent the new matrix organisation to regional and country managers. ‘It’s very important that our leaders at all levels un­ derstand how we are expected to work together within the new organisation,’ says Mr. Pedersen. During these workshops we discuss dilemmas and how to work to­ gether to solve them. Part of the process is to make clear

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who is responsible for what, and at what level decisions should be taken. ‘One of the main characteristics of the new structure is that the regions now mirror the central organisation. The business streams have their clear counterparts within the network structure. This has several benefits as it allows information to flow much smoother in all directions, it gives a clearer picture of who is responsible for what, and it facilitates global cooperation. It will also improve decision-making and our ability to implement,’ adds Leona Geilvoet. WWWORLD 1 2014 17


special report

Q&A

Five GMs on 2014

We have asked five of the general managers present in Amsterdam the following questions: Q1: What are your main priorities for 2014? Q2: What are your reactions to WSS’ “new way of working”? Diamantino Silva, GM, Portugal A1: Gain “low hanging fruit” from cargo m ­ ovements ➜➜ Increase dry dock and cruise calls market share ➜➜ Expand safety business ➜➜ Increase ROR and admin efficiency A2: WSS business is now visible in the matrix and a clear accountability has been established. The streamlining of the levels will help to improve communication and cooperation between the top and the base and thus to increase the speed of changes. Those are basics for a less bureaucratic and more agile organisation in a rapidly changing world.

Mariana Fyrilla, GM, Cyprus A1: Profitable growth ➜➜ Efficiency ➜➜ Work optimization We’re still in the process of completing our country AOP. When finished we will have defined detailed targets 18 WWWORLD 1 2014

The streamlining of the levels will help to improve communication and cooperation between the top and the base

Ove Loos, GM, Germany A1: Profitable growth in all business streams ➜➜ Use the opportunities provided within the new structure to improve efficiency in everything we do ➜➜ Support the development of region Europe to continue as or become the shaper of the business within WSS

Dimantino Silva

A2: The new structure offers us a lot of opportunities to improve the way we work. It will enable us to over­ come the challenges in today’s market in a better and more structured way, and to use our resources more efficiently. To make this happen and to overcome pos­ sible dilemmas within the new matrix every employee has to understand the potential it offers us and change the way they work in order to get the full positive effect.

Anita Aakerlund, GM, Finland A1: Implement new ways of working into our organisa­ tion and start interacting within the matrix ➜➜ Focus on profitable growth, especially in ships agency ➜➜ Gain more FRS fleet agreements ➜➜ Understand WW business standards in order to create additional value to customers A2: In the recent years we have spent a lot of time, money and energy trying to get the area to work. Now the focus is in the business. As long as there are enough resources available to support the whole organisation the matrixwill be a huge improvement.

including customers for each business stream. We will strictly follow up in order to achieve our budget and the departmental targets. A2: I do believe that the new structure will help the entire organisation to solve issues faster and more ef­ ficiently. In reality, the result of the new structure has more and clear focus on business streams, with fewer layers and will enable a more hands-on decision pro­ cess. It will be easier to communicate and have access to regional resources. Of course, the basis for it all is that everyone has a positive attitude, takes an active team role, many initiatives and a willingness to “walk the extra mile”.

Mariana Fyrilla

In reality, the result of the new structure has more and clear focus on business streams, with fewer layers and will enable a more hands-on decision process. Mariana Fyrilla, GM WSS, Cyprus

Diamantino Silva, GM WSS Portugal

Ove Loos

Romaine Romanet, GM, Belgium A1: Increase port revenues, in particular in agency and LRE business, while controlling pricing level. Set clear target lists. ➜➜Increase account sales with dredging companies and offshore ➜➜Update/improve safety procedures ➜➜Update authority matrix and financial control ➜➜Update suppliers/subcontractors agreements in line with corporate requirements A2: The matrix makes the WSS organisation more accessi­ ble to newcomers, easier to understand. I now know who to talk to if my team and I have an issue related to a business stream. I am fully confident that this new organisation will enable us to be more proactive and more efficient.

Romaine Romanet, Diamantino Silva? og Anita Askerlund

WWWORLD 1 2014 19


special report

Doing the right things THE RIGHT WAY The future looks bright for Wilhelmsen Technical Solutions, with an expected significant growth for 2014. Text Einar Chr Erlingsen

slo, Norway: ‘In theory, this growth is almost secured through our exist­ ing order reserve,’ says a confident WTS president Petter Traaholt before adding: ‘That is, if we deliver in line with our own specifications and assumptions. So, as agreed in our 2014 AOP, there will be much emphasis on deliveries in the coming year.’ WTS is enjoying the fruits of organisation­ al steps taken in the first half of 2013. The acquisitions of Novenco Fire Fighting and Maritime Protection (supplier of inert gas systems to the offshore and marine markets) have lived up to expectations. Also in 2013, focus changed from a regional to a business stream based organisation, enabling the right competence to follow a delivery all the way to the customer.

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Blooming market: WTS expects continued growth in the offshore market in 2014. The photo shows the assembly of switchboards and subpanels at WTS’ own plant in Odense, Denmark. (Photo: Steen Knarberg) 20 WWWORLD 1 2014

Back to normal. The newbuilds market saw a dramatic dip in 2009 and then again in 2012. After some years of declining revenue, WTS has reinstated growth in 2013. And for 2014, the forecast is a significant growth in top line. ‘The newbuilds market seems to be on its way back towards its historical average lev­ els,’ says Mr. Traaholt. ‘Which is quite okay for us. When we can make money, or just about, when the market is at its lowest we are confident that we will develop positively when it improves.’ Segment by segment. The offshore market is rather vibrant at present, with many new rigs and other structures being built and some are mature for servicing and retrofits. ‘We’re somewhat challenged by many

changes in our original contract specifica­ tions and terms of delivery in complex new build projects. A main priority will therefore be to deliver on excellence on the contracts already secured,’ says Mr. Traaholt. The TI Group (insulation) is at present in “a bubble of opportunity”, with dozens of contracts with yards in Korea and Japan, and more in the pipeline. The chemical tanker market is expected to be hot in 2014, but is somewhat nervous due to a large number of newbuilds being contracted lately. New legislation is expected to drive safety system upgrades. Gas carriers (LNG) represent another im­ portant WTS market, with a high potential, especially within safety and insulation solu­ tions. There is also the ever-increasing cruise market, dominated by large and demand­ ing owners: ‘We recently launched a new electrical/HVAC automation “package” where we can document savings of up to 30% on energy consumption and thereby also significantly reducing emissions and the environmental footprint. This package is now also standardized for the merchant fleet engine room ventilation and pumps. Naturally we’re expectant as to how this will be received,’ says the WTS president, before pointing to yet another market: ‘We call it “the elephant in the room.” There is no doubt whatsoever that environ­ mental issues, new legislation etc. will create a huge market. The question is only when. The competition will be fierce, so at present we’re satisfied by following the development closely,’ says the WTS president.

Petter Traaholt, president Wilhelmsen Technical Solutions. (Photo: Kaia Means) “Wishful thinking”: A quick look at the WTS world map reveals a heavy concentra­ tion of employees and offices in Europe (mainly engineering) and Asia (newbuilds). Challenged to perform a little “wish­ ful thinking” on where to expand next, PetterTraaholt points to Australia, Turkey, West Africa, Brazil and the US Gulf. ‘We’re adapting the old Barwil philosophy of growing through small bolt-on acquisi­ tions in areas where there is activity already. This will add revenue as well as increase the after market share of our business. Which will be important, as the after market is a lot less volatile than for newbuilds.’

AOP in WTS The main objective for the WTS 2014 AOP process has been to reconfirm the company strategy, make priorities, and analyse the needs for resources and investments to achieve company goals. The process started with the central management team, then involved leaders of company functions (i.e. finance, HR) and the operative leaders in each business stream. The latter have in turn introduced strategy and targets to every man and woman in their own teams.

WWWORLD 1 2014 21


special report

hr/od

finne et bilde av growth / training of seafarers??

A performance culture – what does it really mean? In 2010 the WW group was working its way out of the financial crisis, focused on efficiency, growing sales and re-defining how it does business to get the right results the right way. From that period emerged a strategy to develop a performance culture along with a major commitment to achieve that noble state. By Jørn-Even Hanssen, group vice president HR & OD and Sjur Teigl and, head of compensation and benefits, Wilh. Wilhelmsen Holding

Targeting growth and efficiency After a comprehensive AOP process, Wilhelmsen Ship Management (WSM) has targeted new areas for growth in 2014. Text Einar Chr Erlingsen Photo K aia Means

Kuala Lumpur, Malaysia: Unlike their colleagues in Wilhelmsen Ships Service (WSS), WSM has not implemented compre­ hensive organisational changes in 2013. However, this does not mean that they haven’t set their own ambitious targets dur­ ing their AOP process. ‘Our main focus areas for 2014 are profitable growth, governance and increased efficiency. This is important in a business segment char­ acterised by fierce competition and small margins,’ says WSM president Carl Schou. WSM started its AOP process in early September 2013, with members of the cen­ tral management team gathering in Oslo to agree upon their 2014 global AOP (annual operation plan). Next followed a hectic pe­ riod meeting regional and local management teams, in Europe, Asia and the US, as well as leaders from Maritime Personnel, HSEQ and accounting. New target areas. WSM will continue to work systematically to increase activities 22 WWWORLD 1 2014

within all the shipping segments. Expanding business within the oil, gas and cruise seg­ ments has been targeted for special atten­ tion. ‘These are all highly advanced maritime operations, activity is high, and we can offer the right kind of expertise,’ says the WSM president. ‘In general, the market is very tough these days. We don’t expect much improvement in 2014, although there are some signs of a slow recovery in some parts of the world. The market being what it is, it remains vital to keep cost savings high on our agenda, as we have always done. These days it seems to be even more important than before,’ says Mr. Schou. ‘However, opportunities are to be found even in a tough market. Many customers realise the advantages of a large-scale busi­ ness that only a global player like WSM can offer. A challenge for us will be to select the right kind of quality principals – as always,’ says Carl Schou.

Tough market: Wilhelmsen Ship Management and its president Carl Schou are going for growth in a market that is expected to remain challenging throughout 2014.

slo, Norway: A performance culture is a state where engaged and motivated people work together in an atmosphere of openness and trust to achieve common objectives. It is a shift towards rewarding achievements rather than seniority. The first initiative was a new way of looking at per­ formance appraisals (PA). A new format was introduced in 2011 that provides managers and employees with a structured template for discussing the employee’s achievements against established goals. Performance against standards and values is also measured, along with a discussion of personal development needs. The new PA was positively received. Many felt that they were now getting the kind of feedback they needed to become even better. The second initiative was the Engagement Survey, introduced in 2013. It gives a reliable picture of the overall level of engagement and motivation. The first Survey found that employees are proud to be a part of the worldwide WW team and find their work interest­

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ing and challenging. Equally important, they expect clear information about strategic direction and what is expected of them. Analysis also showed that managers of units with a strong performance culture are better at developing people and giving constructive feedback as well as addressing both good and poor performance. Focus on development is a characteristic of a high per­ forming culture. Research shows that high performing companies do a better job of empowering, supporting and developing employees. They are simply better at putting people first. Moving forward, the link between individual perfor­ mance and compensation will be stronger. The immedi­ ate manager has a crucial role as a provider of feedback and creator of enthusiasm and motivation, and the company has a crucial role in providing the manager with the appropriate tools and training to support this. A stronger focus on performance is a positive devel­ opment. The work to create a performance culture has truly started.

Sjur Teigland: Managers of units with strong performance cultures do a better job of empowering, supporting and developing employees. (Photo: Don Pyle)

Jørn-Even Hanssen: Committed to developing a performance culture. (Photo: Don Pyle)

WSM in figures ➜➜One of the world’s largest providers of third-party

ship management services

➜➜150 vessels on full technical management ➜➜Manages vessels from offices in Oslo, Kuala

Lumpur, Houston, Singapore, Southampton and Pusan ➜➜Recruits and trains seafarers in 24 countries ➜➜Supplier of HSEQ-services, crew management, lay-up management, ship audits, vessel inspection and accounting services ➜➜Employs 500 office staff and 10 000 seafarers ➜➜100 per cent owned by Wilhelmsen Maritime Services

WWWORLD 1 2014 23


WW at sea

Cleaning is not for women? Being a woman in an almost all-male ­environment can have its challenges. Especially when you’re not allowed to get your hands dirty. Tysla was going to be my home for the next two weeks, sailing across the Atlantic together with 28 crewmembers from Norway, Philippines, India and Malta. I guess being a woman made me a bit special, as the crew is not used to having too many females around. Some even believe that working on a vessel is not for women. Maybe they are right? I tried to tell them several times that I could help clean­ ing decks, collect chains and straps etc., but I never got to do that during my voyage. Perhaps being a woman from the head office made the crew think that I could not ‘get my hands dirty’. I was actually not the only woman on board. There was also one female cadet from Malta. She had been on board for three months, and was going to stay another three before signing off. Although not cleaning decks, I participated in many other activities such as inspecting a ballast water tank, ob­ serving repairs on the main engine, preparing the decks for loading, and voyage planning and chart corrections. The focus on safety and security is very high, so we had both a lifeboat mustering and a fire drill. We all had to put on lifejackets for the lifeboat mustering and three crewmembers were picked out to put on their immersion suits. I was of course one of them... There is a strong and visible hierarchy on board, but there also seemed to be a good atmosphere between the nationalities. I noticed only two clear distinctions between the Norwegians and the Filipinos – karaoke and food! Sailing with Tysla for two weeks has given me an idea of how life is at sea. Being a seafarer is a lifestyle, and I’m not sure if I could have spent several months at sea. One of the crewmembers put it this way: ‘Life at sea is kind of lonely, but simple at the same time. That’s just how I want it. I’m always happy on the day I sign off, but then, after two months ashore I’m getting restless again.’

Clean hands: But the rest of Kristin Skaslien got rather dirty during her inspection of a ballast water tank.

Kristin Skaslien Vessel visited: MV Tysla Present job: Supply chain analyst, Wilhelmsen Ships Service, Oslo, Norway

MV

TESTING THEIR SEA LEGS

A bit of salty experience always comes in handy when you’re working in a shipping company. That is why three of our young trainees took the challenge and went on board. These are their stories.

24 WWWORLD 2 2013

Getting ready: Kristin Skaslien is putting on her immersion suit as part of the lifeboat mustering.

WWWORLD 1 2014 25


WW at sea

Good buddies: Chief cook Narciso Timbang Lumbang (to the left) and messman Romulo Jr. De Leon Tablang had a thing or two to teach trainee Finn K Harung in the galley.

Rookie sailor: Eirik Berg is ready to embark the MV Tarago in Tacoma, the US.

The challenge of the galley

Revisiting an old acquaintance

We all know how important food is for our productivity and well-being. But what do you do when you have five nationalities on board with substantially different food customs?

I was fortunate enough to muster on a vessel that I had worked quite a lot with from before. It proved to be both a pleasant and a rather sweaty experience!

Tirranna: I found the answer when working in the galley along­ side the steward and his cook: we actually prepared three different menus for three meals a day; one European, one Indian and one Filipino set of choices. If only I had persuaded my mother to do the same when I was growing up… I had a great voyage. The captain and his crew made me feel welcome from the beginning and did not hesitate for one moment to give an office rat like myself some challenging tasks. Changing engine parts, analyzing cargo and stability predictions, assisting the pilot into port, clearing cargo decks, correcting charts, yes even stripping flaoors were just some of the many things I was allowed to try out. However, it was the life on board and the way that people coped with working and being together in such a small group over long periods of time that gave me the greatest impression. I also enjoyed how well organized things are. Every­ thing has a routine, a person responsible and more

Tarago is one of our durable Mark IV-vessels. During her dry-docking in Singapore earlier this year she was retrofitted with a new scrub­ ber system which greatly reduces harmful emissions from the ship’s exhaust gas. Additionally, a water-in-fuel emulsion system from Nonox Ltd was coupled on the main engine’s fuel line, and two new high-precision speed log pilot units were fitted to the hull. In the course of the one-month sailing, I got well ac­ quainted with the newly installed, six story tall funnel in which a large part of the scrubber system is fitted. On assignment by the chief engineer, I spent hours up there climbing ladders, taking pictures and marking out spots for welding, in order to diminish vibrations from some scrubber parts. A nice and sweaty experience! Another memorable experience was when I attended de-carbonizing of one of the main engine’s pistons. Being an office pencil pusher, this is the sort of thing you only read about in books, but those pistons are actually huge! After spending hours removing the parts surrounding

MV

26 WWWORLD 1 2014

Finn K Harung Vessel visited: MV Tirranna Present job: Trainee, Wilhelmsen Ship Management, Kuala Lumpur, Malaysia

often than not; an allocated time to be dealt with. With a relatively new ship like Tirranna, most actions were proactive tests rather than reactive damage control. But the level of detail given by the crew to every part of the vessel and the resources and support received from the vessel manager and owner gave me great insight into how we all strive for high quality operations. Who would have thought that what looks like a 150 meters long brick in the water, would actually make me proud to be a part of the Wilhelmsen group?

Seeing and learning: Trainee Finn K Harung in one of MV Tirranna’s cargo holds.

MV

Eirik Berg Vessel visited: MV Tarago Present job: Trainee, Wilhelmsen Ship ­Management, Singapore

the piston and the piston itself for cleaning was a big op­ eration. The piston rod is actually too long to be hoisted straight up, so the whole thing had to be tilted in order to get it out of the cylinder. The cylinder itself is big enough to fit a man inside. The whole operation took about 12 hours, and with the ship being located just off Panama, the temperature inside the engine room was about 50 degrees C. So need­ less to say, this was another nice and sweaty experience! Although it is nice getting to do some manual labour, there’s no denying the satisfaction of cleaning up, put­ ting on fresh clothes and calling it a day. Being “in the same boat” as some 25 others creates a unique kind of community. I have a new found respect for those who work long hours maintaining our ships operation every day. Last, but not least I have to thank the fitter for creating an epic karaoke version of Tom Jones’ “Delilah” which I still can’t get out of my head!

WWWORLD 1 2014 27


WW logistics

A MOVING PARTNERSHIP For almost two decades WWL has provided logistics support on site at Komatsu’s UK manufacturing base, from productiuon line to onward ocean transport. WWL makes up the many links in Komatsu’s logistics chain. Text Jane Christie-Smith Photos Martin Avery (Printed with the courtesy of W WL/ Venture magazine)

28 WWWORLD 1 2014

WWWORLD 1 2014 29


WW logistics

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ewcastle’s legacy as the powerhouse of the UK’s Industrial Revolution continues today, as the city and its sur­ roundings are still a leading manufacturing hub in England. Komatsu, a mining, construction and utility equipment specialist, is one of the area's major manu­ facturers, and for over 18 years, WWL has acted as an in-house supplier to Komatsu, offering logistics support from the moment the machines roll off the factory line. ‘As soon as the production team sign the blue “quality passed” sticker on a Komatsu machine, we step in,’ says WWL UK general manager, Andrew Civil. ‘We work with the production line to do a final set of physical checks – recording key information; checking track sizes and machine width; what attach­ ments are fitted?; is there any sign of damage?; is everything locked and secured? We also do the driver's checks so that we're confident the equipment is ready for transportation.’ At the same time, the rest of the WWL on-site team will prepare all the necessary paperwork, ensure the correct parts, books and owner's manuals are accompanying the equipment, place the keys in the machine and work with other WWL offices to doublecheck the transport mode and route. Then the item of equipment is ready for transpor­ tation to Europe and beyond – including markets in French Polynesia, North Africa and America. ‘Having suppliers on site is a major ben­ efit for Komatsu’, says Elizabeth Burton, Komatsu's senior manager of production control. ‘It gives us access to specialist experience and expertise, allowing us to concentrate on our core competency, which is quality manufacturing. This means we maximise the effectiveness of our operation. We expect WWL to provide the correct transport and the most appropriate route– whether it's by road or ocean. And it is for them to ensure that our machines arrive quickly and safely and that all the stringent legislations are adhered to.’

A 30 year journey WWL has had a global

relationship with Komatsu for more than 30 years. WWL provides ocean transport for Komatsu from Japan to North America and Panama; Thailand to Indonesia; and between North America, Oceania and Europe. It also performs stock operations, supply chain management and terminal and processing services in various locations 1986: The Komatsu/WWL relationship goes back to 1986. 2012: Wallenius Wilhelmsen Logistics joined forces with ALS (Abnormal Load Services) to extend its service offering in the rolling equipment and project cargo segments.

Having suppliers on site is a major benefit for Komatsu Elizabeth Burton, Komatsu’s senior manager of production control

30 WWWORLD 1 2014

Komatsu have allowed WWL the room to continually grow the logistics services offered. What started as purely a transpor­ tation service, now includes stock manage­ ment and ordering of machine manuals and parts books, parts shipments and returns and document parcel deliveries. ‘By giving WWL our non-value-added tasks, such as stock management of manu­ als and parts books and dispatch checks, we've improved control and efficiency in the dispatch process,’ says Burton. This long-term working relationship is

The British Contingent Komatsu acquired the current plant property in 1986 and set up Komatsu UK to specialice in crawler excavators. Since 1986, the plant has produced nearly 60,000 machines in the 13-80 ton range. Predominantly for the European market, but able to supply globally. Komatsu UK’s flagship product is its PC215-8 Hybrid excavator – the world’s first hybrid construction equipment. described as a "partnership" by Burton, who says that it is all about collaboration. ‘When we talk about cost reductions or route changes, it is not only that we're tasking WWL to go away and meet the task; they come to us with improvements and proposals backed up by data, so we can have a meaningful discus­ sion. It is very much a case of us moving in the same direction. They're committed to the same business goals as we are and because of their expertise in heavy haulage, they’re able to offer valuable advice in most situations.’ Civil adds: ‘We're continually trying to add value to our relationship with Komatsu, and I am very proud that people at Komatsu view WWL as a source of competence and information, asking for our opinion on any logistics query.’ ‘It's a dynamic and effective relationship,’ continues Burton. ‘We're able to agree face to face on the status of any shipment, the preparedness of our machines or the

A global picture Komatsu Limited, a manufacturing company that specialises in mining, construction and utility equipment, was founded in 1921 with headquarters in Minato, Tokyo, Japan. Komatsu Ltd is part of the Komatsu Group, alongside 146 other companies, with a global workforce of 46,730 across the group. readiness of the transport. So their activity gives us greater predictability and reliability and it contributes to one of our most impor­ tant key measures: on time delivery.’ Since Burton joined Komatsu eight years ago, she's seen the on time delivery rate rise consistently. ‘We agree with WWL the date that the machine will leave site, and 99–100 per cent of the time, our machines leave on that day. And for a manufacturer of such complex products, I think that's truly exceptional. WWL is an important part of that achievement.’ WWWORLD 1 2014 31


WW shipping

HEROES OF TAMPA: The Tampa crew members after their ordeal off Christmas Island, Australia had ended. (Photo: Einar C Erlingsen)

MAKESHIFT SHELTER: Taking care of 438 shipwrecked persons presented a major challenge to the Tampa crew.

A farewell to Tampa In late August/early September 2001, our proud ship MV Tampa made world headlines for nine days continuously. 12 years later she has made her final voyage. ongsberg, Norway: Tampa’s master captain Rinnan during those fateful days has long since retired, but is still a local celebrity in his hometown. 12 years ago his name was on every news channel around the world, after he and his crew had rescued 438 mainly Afghans shipwrecked outside Australia. The shipwrecked were on board a 35 me­ tre long Indonesian type vessel, adrift and slowly sinking. Tampa was directed towards the distressed vessel following observation by a plane from the Australian Coast Guard. The Tampa crew performed a heroic job when literally lifting the shipwrecked up the ship’s gangway to safety on deck, where makeshift shelters, cooking and sleeping facilities were erected. Some women and children were so weak after days at sea that they had to be carried up.

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The real drama. This was all according to the book; the real drama started when Australian authorities denied Tampa access and threatened with military action if she entered Australian territorial waters with the shipwrecked on board. But captain Rinnan never budged. In concert with the best of maritime traditions he and his crew refused to follow orders and insisted that the ship­ wrecked should be discharged at the nearest port, which happened to be the Australian Christmas Island. On board the situation rapidly worsened. Some of the shipwrecked lost consciousness, others were suffering from skin deceases or stomach cramps, while others were becom­ ing increasingly nervous and aggressive. Mayday from Tampa. In the early morn­ ing of 29 August captain Rinnan, after 32 WWWORLD 1 2014

consulting with the WW headquarters and Norwegian authorities, sent the following Mayday message to RCC Australia (Rescue Coordination Centre): “We regret to advise that the situation onboard is deteriorating fast and is now get­ ting out of hand. We have tried our utmost to accommodate the wishes of the Australian authorities, but are unable to await air transfer of medical assistance. I have no alternative but to proceed to nearest shore immediately.” The Australian reply was swift – and tough. In a matter of hours Tampa was entered by heavily armed soldiers from Australia’s Special Air Service (SAS). The tug-of-war continued, until a solution was agreed upon on 1 September: the shipwrecked were to be transported to New Zealand and also Nauru. Two days later they were on their way to their new destinations. A knighthood and a friend. In hindsight, what were the results of the Tampa incident? For one: that captain Rinnan and his crew demonstrated to all the world that politics have to yield when human lives are at risk at sea. Secondly, the shipwrecked were free to start their new lives in safe surround­ ings, and thirdly, WW received worldwide acclaim for how the episode was handled by everyone involved, from the seafarers on board to our representatives in Australia and at the Oslo headquarters. WW received the prestigious UN Nansen Award and Arne Rinnan became a Knight of the Royal Norwegian Order of Merit – and he got a new friend: ‘His name is an easy one to remember,’ captain Rinnan says: ‘It is Muhammad Ali. He was amongst the last to leave Nauru, and

is now settled in Wellington in New Zealand where he is night manager at one of the hotels. He has become a justice of the peace and has even met the New Zealand prime minister. We still exchange greetings from time to time.’ Arne Rinnan still frequently thinks about those dramatic days on board. On occasion he also misses life at sea, but doesn’t have any particular feelings for the ship Tampa as such: ‘I’ve sailed on so many ships in my time, but I do admit that she was one of the better ones,’ he says. Six days after the last shipwrecked had left the Tampa another incident made world headlines: on 11 September 11 2001 in New York. But that is another story.

WORLD FAME: Two world celebrities, MV Tampa and Sydney's opera house.

Green recycling for MV Tampa ➜➜In early August 2013, MV Tampa set out on her

final voyage - to the Changjiang Shipbreaking Yard in China. There the recycling process was completed in early November under the supervision and monitoring of a specialist team from Wilhelmsen Ship Management Asia. ➜➜‘They are there to ensure that the scrapping process is performed in compliance with Green Standards,’ says Rakesh Bhargava, head of Layup and Green Recycling at WSM Asia. ➜➜‘Our team will ensure safety of the workers and the environment, and that proper equipment is used while removing and handling all hazardous materials from the vessel. They will also produce weekly reports and document the traceability of all such materials to the approved waste management facility. WSM’s Green Recycling Services have been audited by DNV (Det Norske Veritas)’ says Mr. Bhargava.

WWWORLD 1 2014 33


WW shipping Green recycling: MV Tampere being scrapped and recycled at the Zhongxin Ship Recycling & Steel Company in China. Bildene er fra Zhongxin Ship Recycling & Steel Company – tatt 2010 av ASJ.

GREEN RECYCLING: THE ONLY OPTION While the adoption of IMO’s Hong Kong Convention (HKC) has proven a long and slowmoving process, the European Union have now pushed their Ship Recycling regulation through, placing the ways in which ships are recycled back into the spotlight. Text David Hopkins Photos Arild S Johannessen

Oslo, Norway: ‘As a responsible owner we will not be associated with unethical or poor working conditions, poorly developed regulations, poorly developed infrastructure to handle hazardous material, or poor envi­ ronmental standards. We require our high quality standards throughout the vessels lifespan, and there is no other option to us other than recycling vessels in a green way,’ affirms Gaute Teigen, manager fleet and marine operations, Wilh. Wilhelmsen ASA (WW). An industry leader when it comes to designing and running innovative, energy efficient vessels, it is little surprise that WW takes such great care in how their vessels are recycled. Close to completing the recycling of the MV Tampa in Changjiang, China, WW has utilised the expertise and experience of Wilhelmsen Ship Management (WSM) in order to ensure that the process meets their, and the EU convention’s new exacting standards . Working with a pre-audited shipyard and using DNV (Det Norske Veritas) vetted re­ cycling procedures, WSM’s team is in place 24/7 to monitor and report on the recycling process. ‘Norway was the first nation to rat­ ify the Hong Kong Convention in July 2013, but several other nations still have to do so. Until they do we are using a tripartite bonus scheme to make sure that the yard follows suit on the green recycling practises,’ says Rakesh Bhargava, head of green recycling at WSM. 34 WWWORLD 1 2014

‘Simply put, our expert team monitors KPIs based on non-compliance for health, safety and the environment, reducing or eliminating their bonus if concerns are found,’ adds Bhargava. New EU requirements. With the European Union officially implementing the HKC’s recommendations into its own recycling law, there are now a number of new require­ ments for EU flagged vessels, ships visiting EU-ports and the ship recycling facilities wanting to recycle European ships. The new regulation requires all EU vessels and vessels visiting EU ports or anchorage to carry an Inventory of Hazardous Material (IHM). IHM is a document in which all poten­ tially hazardous material onboard a vessel that can pose a risk to the health and safety of people or to the environment is identi­ fied, located and quantified. Furthermore, it requires the recycling yards to prepare a generic Ship Recycling Facility Plan (SRFP) outlining the procedures and processes in place to handle hazardous materials and dismantling vessels in a safe and environ­ mental protecting manner. Finally, a Ship Recycling Plan (SRP) is designed specifically for the individual vessel going for recycling, considering the vessels unique specification and inventory of hazardous material. More expensive, but faster. Surprisingly, even with such detailed regulatory require­ ments recycling a vessel in a shipyard takes less time than the more controversial beach­

ing method. The careful, WSM-run recycling of WW’s MV Tampa is expected to have taken in total four months, compared to the six it would have when being beached. However, there are significant costs at­ tached to recycling responsibly, a price worth paying according to Gaute Teigen. ‘By using green recycling facilities we get 10-20% less paid for the steel, plus the cost of site team at the ship breaking yard to verify the dismantling process,’ he says. For example, considering scrap-prices, a vessel-owner recycling at a Chinese yard typically accepts an opportunity cost of around 40 USD per Light Displacement Ton (LTD) compared to beaching in the Indian Subcontinent. ‘Irrespective of these costs, WW are totally committed to the green recycling of their vessels as they continue to take out old tonnage and adjust fleet capacity to market outlook’ says Teigen. Adding, ‘responsible owners do have a duty to show that disman­ tling vessels in a responsible way is possible.’

WSM green recycling Starting with WW’s own vessels, Wilhelmsen Ship Management has built up substantial expertise in the green recycling industry, including: ➜➜Auditing yards ➜➜Arranging quotes from suitable cash buyers ➜➜Providing supervision during the recycling process all the way to a well documented and auditable completed demolition.

WWWORLD 1 2014 35


WW shipping

Record low relative CO2 emissions for WWL fleet

Steady improvements: Record low relative CO2 emissions for the Wallenius Wilhelmsen Logistics fleet, as demonstrated by this graph. (Source: WWL)

Our combined fleet has been steadily decreasing the average relative emissions to its lowest point ever. WWL’s industry-leading environmental performance is a big part of the company’s value proposition.

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Text and Photo: K aia Means

40 Combined efforts: Record low fleet average CO2 emissions have been reached through a combination of steady improvements, including advances in ships design and technology as well as refinements in operation,’ says Roger Strevens, VP Global Head of Environment at Wallenius Wilhelmsen Logistics.

35 30 25 2005

2006

2007

slo, Norway: ‘We’ve made good progress over the last number of years, as the 2012 WWL environmental sustainability report demonstrates. The key relative CO2 emissions graph is trending in the right direction,’ says Roger Strevens, VP Global Head of Environment at Wallenius Wilhelmsen Logistics. ‘There are several reasons why we have been able to make such steady improvement in fleet average relative CO2 emissions, i.e. the average amount of CO2 produced by moving one tonne of cargo one kilometre. These include advances in design and technology as well as refinements in operation. The achievement would not be possible without a focused team effort, including coordination of slow and ultra-slow steaming between trade vessel operators, coastal vessel operators and captains,’ says Strevens.

2008

2009

2010

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2012

in the industry. In addition, new regulations will continue to increase costs. For example, the implementation of a stricter fuel sulphur limit in Emission Control Areas (ECAs) will prompt a switch to a more costly fuel type starting in 2015. It is vital to focus on consumption and to invest in technology, including a comprehensive fleet renewal.

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Team effort. Vessel operators are steadily perfecting the routines needed to optimise schedules for slow steaming, and they are cooperating with captains, who need to be involved in the scheduling to achieve the best results. Communication and coordination between the planning and operation office functions and each vessel are key factors. Better analyses translate into scheduling that takes weather events and other

2011

With the price of fuel having increased by over 600% since 2000, optimising fleet efficiency is a vital factor in staying competitive Roger stevens potential future delays into the equation, keeping the overall plan and schedule and using the optimal speed for each particular voyage. With the price of fuel having increased by over 600% since 2000, optimising fleet efficiency is a vital factor in staying competitive

Lower relative SOx and NOx. Reductions in relative CO2 emissions tend also to lead to a reduction in emissions of SOx and NOx per cargo tonne kilometre, provided utilisation levels remain steady. ‘It’s important that we get these reductions. When it comes to environmental technologies, those that are most sustainable also align well with commercial requirements,’ says Strevens. ‘Those are the kind of solutions we need and continuously look for.’ Environmental concern has gone from being a fringe issue for business to one that presents significant opportunities. Increasingly, environmentally concerned and motivated companies have a preference for doing business with like-minded companies. ‘Everything else being equal, the end consumer will choose the environmentally progressive supplier. Gradually and steadily the environment is moving toward the core of business,’ says Strevens. WWWORLD 1 2014 37


WW shipping

Another ”first ever” Tarago operation

Our MV Tarago is a ship for highly complex engineering. In May, she had the world’s largest multi-stream scrubber installed. In October, she became the “first ever” WW ro-ro ship to perform an underwater thruster replacement. Text Einar Chr Erlingsen Photos Ove Sætre

eebrügge, Belgium: Normally, to install a thruster requires dry-docking, including consequences in regard to costs and offhire. But being the pioneer ship she is, with an experienced and competent crew, this time it was decided to perform the installation while the vessel was still afloat in port. This was by no means the only “first ever” major technical installation for MV Tarago. She was the first ship in the WW fleet to have a new type of speed log installed. During 45 hectic days in early 2013 in Singapore, she also had the world’s largest multi-stream scrubber installed. The Wärtsila Exhaust Gas Cleaning System (EGCS) weighs a total of 80 tons and allows Tarago to use heavy fuel oil in Emission Control Areas (ECA) and still be in complience with the new sulphur requirements coming into force from 1 January 2015.

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Underwater installation. This time she became the first Wilhelmsen ro-ro ship ever to undergo an underwater replacement of her stern thruster. Upon leaving the dry dock in Singapore in May, she had to sail without the thruster due to a shortage of exchange units. To perform such an operation afloat is quite complex. ‘In short, you have to launch the thruster unit in a type of cradle. This is done to ensure a nimble access for the thruster to the tunnel position while it is kept afloat by using air cushions,’ says vessel manager Ove Sætre, who coordinated the planning part and was present on board Tarago throughout the operation. Lugs (handles) had been welded inside the thruster tunnel for hauling in the unit. The thruster was then brought into position by divers. They also connected the wire to the shaft’s centre. The wire is going through the “dome” to a chain block in the engine room. After the thruster and tunnel flanges had been brought tight together, and the dome was without water pressure, the dome could be lifted. Then the thruster was bolted to the tunnel flange from the engine room side. ‘Handling a unit like this takes time, it's a heavy object with the propeller diameter being 2,4 meters. The whole operation was performed in about 24 hours, and I’m impressed by the skills and dedication shown by captain Espen Derbakk, chief engineer Ole Magne Kristiansen, chief officer Magnus Bergman, 2nd engineer Roberto Lagazo, electric officer Thomas Ruud and the rest of the Tarago crew throughout the operation’ says vessel manager Ove Sætre. 38 WWWORLD 1 2014

Ready for launching: The new thruster unit is about to be lowered into the sea. Next step: The dome is ready to be fitted onto the tunnel flange.

Connected: The thruster gear is in place in the engine room. Underwater welding: Divers have welded on transverse support beam for thruster gear.

WWWORLD 1 2014 39


business profile Wilhelmsen Ship Management Europe Norway, UK

keys to the best seafarers

‘Our 18 manning offices worldwide are key to attract and keep the best seafarers,’ says Espen Sending, new vice president of Wilhelmsen Marine Personnel. His company employs 10 200 mariners, the highest number ever.

asia Malaysia, Korea, Singapore

america US

wilhelmsen marine personnel India, Phillippines, Russia, Bangladesh, Croatia, Malaysia, Poland, Romania, Norway, Ukraine, Korea, Brazil, Myanmar

18 Manning offices

13 countries

3 continents

18

13

3

Text and photo Håvard Solerød

slo, Norway: How do you attract the best people to begin with, and how do you keep them? As always, the first impression is one of the keys to success, according to Espen Sending, new vice president Wilhelmsen Marine Personnel (WMP): ‘The first meeting between the seafarer and the manning agent is always crucial. Skilled mariners are in short demand. The market is under pressure, but we feel that we have what it takes to compete and to grow,’ says Espen Sending. His company’s global network of 18 manning offices provides vital keys to attract and keep the best seafarers. WMP is among the top seven manning agencies globally, measured by size. All the largest players offer much the same in terms of salaries and working conditions. Smart improvements, attention to detail and personal service are ways to offer more and to stand out. Manning agents represent the interface between employer and employee, and are pivotal in following up the relationship with the seafarer.

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Driven by customer demand. ‘Our customers’ demand for excellence is a driving force for developments on board and the quality of the crew,’ says Sending. ‘When meeting up with our manning officers, the seafarers will enquire about company policies, salary, insurances, logistics and travel to and from ships, and also how they can keep in touch with their families. Safety onboard is a high priority to both the seafarers and their families. The manning agent must set the frame for a good meeting and communicate what we can offer. And they must deliver as promised,’ says Sending. ‘Some manning officers are ex-seafarers themselves, others have different backgrounds. Most importantly: they must know the maritime and crewing industry, and have skills in HR. The seafarers are dependent on how they are supported with training and assistance in practical matters. The manning agents have to master a wide variety of skills.’ Leadership at sea. ‘There are differences within each country and their educational facilities. You have to consider what lies behind the certificates, including personal qualities, the rating of their educational facilities, 40 WWWORLD 1 2014

background from what kind of ships; the total experience behind each seafarer. We have the experience and know-how, and can ensure that each individual has the basic skills needed to practice good seamanship,’ says Sending. ‘One thing is certain: there is little leadership and so called Crew Resource Management training in basic maritime education. We have taken steps to improve that. Presently all our senior officers are participating in a leadership and human factor programme executed in India and Norway. This includes simulator training. We aim to implement this programme on a permanent basis, starting at junior officer level,’ says Espen Sending. Geared for growth. Right after the financial crisis hit there was a downward trend for WMP - as for most others. However, the company has since rebounded. For the first time in history their total crew now number more than 10 000. ‘Our most recent office is in Myanmar,’ says Sending, who will move to Kuala Lumpur in early 2014 to find his place at Wilhelmsen Ship Mangement’s (WSM) global head office in Malaysia. ‘We’ve been in the business for decades, and we have what it takes. There is no reason why we shouldn’t grow further,’ Sending says. The 10 200 employees are working on 250 ships. Wilhelmsen Ship Management has technical management of 160 of those ships, and crew management for 100 vessels Approximately 1 000 of the seafarers work on WW-operated vessels. A good job done by Wilhelmsen Marine Personnel could very well result in new contracts including technical management for Wilhelmsen Ship Management.

One thing is certain: there is little leadership and so called Crew Resource Management training in basic maritime education. We have taken steps to improve that

MLC 2006 The implementation of the Maritime Labour Convention 2006 was finalised in August 2013. In the aftermath there is increased focus from Port State Control to check that seafarers have valid contracts, that ships adhere to the new rules with regards to workand rest hours, and a number of other regulations related to working conditions on board. The original platform for MLC 2006 was the Seamen’s Act of 1975 established by ILO (International Labour Organization) under the UN umbrella. Wilhelmsen Marine Personell has renewed all 10 200 contracts with their seafarers to comply with MLC 2006. Below are some main checkpoints for Port State Control due to changes after the implementation of MLC 2006: ➜➜ Minimum age ➜➜Medical certificate ➜➜Qualifications of seafarers ➜➜Seafarers’ employment agree-

ments ➜➜Hours of work or rest ➜➜Manning levels for the ship ➜➜Size of accommodation and

noise levels ➜➜On-board recreational facilities ➜➜Food and catering

WWWORLD 1 2014 41


WW asa

A new “wave” of thinking

This time we have thought differently and based our optimisation process on an operational profile derived from experience with existing vessels. The result is a design process that allows for optimisation at more realistic conditions

Only 4.3 meters wider and three meters higher than its predecessor, the new generation of PCTCs still represents a unique new hull design, thanks to new ways of thinking. Text and photo Håvard Solerød

slo, Norway: When the expanded Panama Canal opens it will allow for the passage of a brand new generation of PCTCs. The new Post-Panamax vessel will be 36.5 meters wide, about four meters wider than the older vessels. With a car carrying capacity equivalent to 8 000 units, the ship is custom-designed to fit the canal’s new lock system. Behind the new ship generation lie new ways of thinking: ‘A yard contract normally focuses on a service speed at the Normal Continuous Rating (NCR) of the main engine and associated consumption. This time we have thought differently and based our optimisation process on an operational profile derived from experience with existing vessels. The result is a design process that allows for optimisation at more realistic conditions,’ says Lars Dessen, Head of Vessel Design at WWASA. Much of the optimisation has traditionally been carried out solely by the yard. However, in this case, WW’s Gunnar Gamlem has been heavily involved in the process. This has resulted in what we believe to be a design better suited for the expected operation of the vessel in relation to energy efficiency and overall performance.

HERO-project (High Efficiency ro-ro). This was a joint project between WWL, Wallenius and WW. The project included comprehensive testing at CTO, a ship model test basin facility in Poland. The data allowed the designers to analyse fuel efficiency in calm water, performance in waves, maneuvering and course-keeping stability given the new main dimensions of the ship.

‘Loads of data have been gathered from the operations of our vessels through our performance monitoring and analysing system (PMA). These are key information to a better vessel design. The resulting hull design is more shaped by realistic operating conditions than by maximum speed,’ says project manager Thamba Rajevaan. ‘Using these data we can check how our vessels have performed under changing conditions; their average operating speed, periods of slow steaming or full steaming etc. We check their ballast sailing periods, and when loaded to various drafts. Then we calculate using different drafts and speeds, and optimise the hull’s shape for the operational profile for the vessel,’ says Mr Rajeevan. The improved hull design is in part a result also of the

First vessel in October 2014. We met with the project manager Mr. Thamba Rajeevan and his project team between meetings at the Huyndai Samho Heavy Industries yard in Korea, and the classification society Det Norske Veritas in Oslo. More than 300 design drawings have been sent back and forth for comments and approval. Additionally, the makers-list has been discussed and agreed with the yard. Discussions and meetings with suppliers were or are being scheduled. There were still some loose ends to be gathered and handled at the right time to ensure a smooth building process. The whole team of mariners/engineers at WWASA Technical Department is working closely together to ensure a best possible design. Chief Engineer from Wilhelmsen Ship

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Old – and new: The new Post-Panamax sized PCTC (to the right), as compared to its predecessors.

Management (WSM), Arne Pedersen, has also been hired in as machinery surveyor during the building process and is presently working with the technical team to ensure experience transfer from our ship management company WSM. A tender process started in August 2012 and after contract signing in May 2013, the final design has been defined in good cooperation with the yard. Steel cutting at the Korean yard will begin in January 2014, with the first vessel to be delivered in October the same year. The second vessel will be delivered February 2015. Recently, two options have been declared, scheduled for delivery during the first half of 2016. The Post-Panamax vessels will be 200 meters long and 36.5 meters wide, with 13 decks - one more than before. The additional deck, and the extra 4 meters in width increases capacity by approx. 1 500 car units compared to earlier Panamax designs. The extra breadth also allows the ship to sail with less ballast than earlier PCTC generations. This combined gives a better performance overall for this new generation of ships. Another important step forward is the new exhaust gas cleaning system. The system reduces emissions of SOx to well below the levels permitted in the new ECAs (Emission Control Areas). In addition to ensuring compliance with the coming SOx regulations, the system also allows the vessel to operate on a fuel oil that has a lower cost than what would otherwise be required. The stern ramp is the key to efficiency and smooth operations in port. The ramp is 12 meters wide and can take up to 320 tonnes, similar to our recent LCTC (large car and truck carrier) designs. Similarly, the internal ramp system has been designed for efficient and flexible cargo loading and stowage. ‘The main improvement of the new design could really be summed up as follows,’ says Mr Dessen: ‘It is better adapted to the realistic operating conditions it will face at sea and in port, to the advantage of both our customers and us.’

Project team members: This is the team behind the new Post-Panamax PCTCs: (from the left) Trine Lilly Heidang, Kim H Brynjulfsen, Thamba Rajeevan, Arne E Pedersen, Lars Dessen and Torfinn Wessel. Gunnar M. Gamlem, Alexander Maresca and Per Brinchmann where unfortunately not present at the photo session.

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WW SHIPS SERVICE

The network expands in West Africa

At a time when the global economy is continually sputtering, the maritime industry sees an inspiring potential for growth in West Africa. Wilhelmsen Ships Service opened its first office in Dakar, Senegal, in January as a step toward broader network expansion in the next five years. Warehouse: The familiar green chemicals containers are stored in WSS’ new Dakar warehouse before distribution to the customers.

Text K aia Means

enegal: ‘In Dakar we have a local team of energetic, highly enthusiastic professionals who are determined and have a can-do attitude, and always show a high level of service. We have received quite a number of complimentary notes from customers,’ says Simon Hutt, who was southern Europe, North and West Africa Area Director until very recently, but who has just moved to Houston to take over as VP Americas. WSS operations in the region go back 15 years – with supply points in Morocco, Senegal, Nigeria, Ivory Coast, Tunisia, Congo and Ghana, combined with a large network on the Agency side covering 22 countries along the coast. But until recently they were administered in France, while subcontractors were relied upon locally. In North Africa, WSS has had a presence in Algeria for 12 years, with a current tally of six offices. West Africa offers great potential, with

S

Busy days: The Dakar team, here represented by operations manager Adama Camara (in the middle), supply coordinator Momar Ndaw (left) and shipping agent Oumar Diallo (right) are known for their can-do attitude and high service level.

increasing the pace of development, and WSS is well positioned in the market. More WSS customers are becoming interested in both north and West Africa as they notice the region’s current economic growth, and also see its potential. Customers find that dealing with local regulations in the various West African countries has been much easier through WSS.

‘As we’re still building business in the area, we will need to back the expansion up with a sales and marketing campaign to customers,’ says Hutt. One of the keys to keeping pace with the growth is to build networks that are strong on local knowledge, and that means hiring local resources.

Exceeded expectations. Senegal was chosen as the first office, as the country is one of the most stable in the region. In July, WSS opened a warehouse in Dakar. ‘We immediately got a great response,’ says Hutt. ‘It has exceeded our expectations in terms of growth, profitability and operational performance.’ At the same time we have a new supply chain base in response to customers’ needs, utilising a local service provider in Luanda, Angola. Fire, rescue and safety service capability is offered in Pointe-Noire, Congo,

Local knowledge. ‘It’s not been an easy ride,’ he says. ‘Setting up the office in Dakar has required determination and thorough analysis using local consultants who assist in understanding the economic and political environment. Through this we are building good local relations, including with local authorities.’ Hutt says that much of the trepidation concerning entering into business in West Africa is based on ignorance and stigmatization, and not based on hard facts. Nonetheless, there are issues that need to be high on the list of focus for the industry. There has been a recent increase in piracy off the coast of West Africa. He recognises the efforts of local governments to focus on issues of security, and also their targeting of corruption. Tackling this issue “is not going to happen overnight,” he says. Still, in comparison with many other regions in the world, West Africa is not much different. ‘We will face a continual sales and marketing campaign to educate our network that Africa is a safe place to do business,’ says Hutt.

Customers find that dealing with local regulations in the various West African countries has been much easier through WSS Ship deliveries: The Wilhelmsen Ships Service logo is a familiar sight in the port of Dakar.

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its growing oil and gas and dry bulk minerals industries and also a burgeoning large middle class fuelling consumer demands. New oil and gas facilities are scheduled to go onstream in the coming years, further

where we are using a local sub-contractor. A second West African office, in Abidjan, Ivory Coast, will be operational soon, and plans are for new offices in other key points in West Africa: Ghana, Congo and Nigeria.

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A man and a monument: Oslo’s new opera house from 2008, here enjoying some early winter sun, became a monument of great national pride even before its opening. Leif T Løddesøl was both chair of the opera’s board when the decision to build it was made, and leader of the jury that picked the winner amongst 246 entries from architects world-wide.

Ww profile

A LEADER FOR ALL SEASONS

Recently Leif T Løddesøl (78) stepped down as chair of the Steering Committee and Boards of WWL, Eukor and ASL. These were his last formal positions in a WW career that started in 1969; a career that has brought him to the highest peaks and deepest abysses. This remarkable man has had considerable influence on developments in WW as well as Norway. Text: Einar Chr Erlingsen Photos: K aia Means

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WWWORLD 1 2014 47


Ww profile

LEADERSHIP AT THE CROSSROADS How do you lead in times of great changes? Or when dramatic events turn everything upside-down? Leif T Løddesøl has ample experience from both scenarios.

Leif was a key player in helping the company out of difficult times following the oil crisis in the mid 80s, in getting us back on our feet after the fatal airplane accident in 1989 and in establishing WWL. I think I would dare to say that we would not have been where we are today without Leif’s sound advice and leadership throughout the last four decades. (Wilhelm Wilhelmsen)

IN A NUTSHELL Reading: Right now: “1814 The year of

miracles”- Karsten Alnæs and “Speeches and power” – Bjørn Magnus Berge. Sports: Right now: gym

at 06:30 in the morning and waiting for snow to go skiing. Only ambition: to slow down the ageing process.

orway: “He is a man with a charismatic personality and a leader who is extremely democratic until a certain point, then his role is transformed into that of a general.” This is how the official Norwegian biographical encyclopaedia describes Leif T Løddesøl after a remarkable career that has spanned more than half a century. It has taken him from civil service to shipping, banking and then back to shipping again. He has been pivotal in strategic decisions that have transformed both WW and indeed Norway. A close associate of many years, former vice president corporate communications Hans Chr. Bangsmoen says this about Leif T Løddesøl’s leadership qualities: ‘We had tears in our eyes when he first left us in 1980, and again when he returned in 1988. Only then they were tears of joy.’

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Leadership at a crossroads. He has been a leader in times of crisis or at crossroads and has clear views on both: ‘Never try to lead in isolation, always as a member of a team, with clearly defined roles. Change should always be presented as the road to something better, not because of mistakes. Provided that this is true, of course. Every leader needs to have a relationship based on trust with her or his employees. It’s really a question of attitude. I get very involved with people, so to me this is a central point. Openness and making money in a decent way should be ingrained into our organisation, with people as our foremost asset. And, it is so important to “see” each individual and appreciate their contribution to the totality,’ says Mr Løddesøl. His career started in earnest when he joined the Norwegian ministry of foreign affairs as a young lawyer in the early 1960s. When Shell and Exxon discovered a surprising oil deposit outside Groningen in Holland some geologists started wondering whether there could be more in the direction of the British coast. In Norway very few really believed there could be oil in the North Sea. When the government was approached by oil companies with a request for concession rights on the continental shelf the issue became an intra departmental “hot potato”. It finally landed in the foreign ministry’s law section where Jens Evensen ruled, a man who was to become legendary. 48 WWWORLD 1 2014

Proud father: Leif T Løddesøl will be retiring from his position as board member at EUKOR Car Carriers on 31 December 2013. In late November he was present at the name giving ceremony of EUKOR’s new vessel MV Morning Chant where his daughter Cecilie Løddesøl was lady sponsor. (Photo: EUKOR)

With the high and mighty: Leif T Løddesøl (left) with former U.S. president Jimmy Carter on an offshore oilrig. (Photo: private)

“If the oil companies are interested, there is every reason to get some legislation together. This is foreign policy. The case is ours,” Mr Evensen said and had the young lawyer Løddesøl transferred to his section. The rest is history. Laws and regulations were written and passed by the Norwegian parliament at record speed. But what rights did Norway really have on the continental shelf? Neighbouring countries where approached. International law was unclear. ‘This was new territory for us. But why not claim extensive rights? We really didn’t have much of a clue at the time,’ Mr Løddesøl admits. ‘However, the other nations didn’t believe in large offshore oil fields either, so after negotiations Norway was able to draw its new offshore border lines around larger areas than could be expected.’ The results? The Ekofisk and Statfjord oil fields became Norwegian rather than Danish and British. Both fields are still producing, Ekofisk from 1971 has a predicted lifespan of yet another 40 years. This was the beginning of an era that was to transform Norway. It was also the start of a new and technically advanced industry. Offshore exploration and production has had huge impact on almost every aspect of the country’s business development. The WW-group has been involved in various sectors of this industry, and now once again. A brand new philosophy. In 1969, Leif T Løddesøl (then 34) was summoned by Tom Wilhelmsen (the grandfather of Thomas Wilhelmsen) to start the liner company ScanAustral, a joint venture between WW, Transatlantic (Sweden) and ØK (Denmark). This was at the dawn of the container age. It was becoming apparent that the old liner vessels were on their way out. So where lay the future? To many, containers were the answer. WW was in doubt. An advanced containership was ordered for the Far East. But were containers really necessary to “wrap in” the cargo normally carried by WW in the Europe – Australia trade? Mainly typical bulk cargo such as wool, fleece (from Australia) and paper and pulp (from Europe). Transatlantic had some experience from a new type of ro-ro carrier. This prompted a decision that was to have an immense impact also on WW’s future: while most competitors embraced the new container concept, WW with partners decided to go for ro-ro ships on the important trade between Europe and Australia. The

partnership ordered 5 new ro-ro’s to replace 17 traditional liner vessels. The trade was regulated through the so-called Australia conference, dividing cargo between the competitors. ScanAustral under Leif T Løddesøl’s leadership negotiated acceptance for an important principle: that traditional bulk cargo was not to be included when the container trade was divided between the operators. ScanAustral still got their container share while keeping their bulk cargo. ‘While traditional liner ships had lost money on every voyage, it soon became clear that the new ro-ro’s were the beginning of a success story that has lasted to this day,’ says Mr Løddesøl. Hard times. When Leif T Løddesøl left WW in 1980, it was to take over as president of Norway’s largest bank Den norske Creditbank (DnC). In 1988, Norwegian banks went head-on into their worst crises ever. Experts still disagree upon the cause of the downturn, but there is little doubt that political decisions were in part to blame. In DnC’s case, the situation was worsened by an unfaithful servant who had gambled away millions without the knowledge of his peers. As president, Leif T Løddesøl assumed responsibility and stepped down. Being the first of several bank leaders to do so, he took the most flak from media and public. It shows his strength that regardless of this, it was not a beaten man who returned to WW as president and CEO later that same year. He took over a company in crisis, but after comprehensive restructuring the course was set for a brighter future. Then, on Friday 8 September 1989, disaster struck. A plane carrying 50 employees and a crew of five crashed into the sea off the coast of Denmark. Everyone onboard was killed. They were on their way to Germany, to celebrate the naming of a new ship. Leif T Løddesøl had been booked onto the same plane, but had with Mr. Bangsmoen and some reporters abandoned their seats to allow more employees to join in the celebrations. Just having arrived by a commercial flight in Hamburg, they received the shocking news.

How do you lead in a situation like that? ‘The accident was a shock to us all. We personally knew almost everyone on board, but we were also aware of our

Idols: Jens Evensen – courage and integrity. Former UN general secretary Boutros Boutros-Ghali who I was once fortunate enough to have as a teacher. Dislikes: I try to avoid them. I prefer to look at the bright side of issues and people. Life motto: Look forwards, not backwards. Music: Everything –

including opera and ballet. Music and movement.

Favourite place:

Oslo. I have a cottage on an island from where I can go to work by boat. Another small cottage in the woods outside the city. Relaxes best:

At one of the places mentioned above. Knighted twice:

In 1984 he became Knight of the Order of Saint Olav for his contributions to society as a business leader. In 2011 he was promoted to Commander of the same order for his remarkable cultural achievements. Positions held:

Norway’s foreign office (1962-66), The Norwegian Shipowners’ Association (1966-69), CEO ScanAustral (1969-73) and WW (1973-80), president DnC (1980-88), president WW (1988-2000) and chair (2000-03), president of the Shipowners’ Association (2000-02), chair Statoil (2002-03) and The Norwegian Opera and ballet (1996-05). WWWORLD 1 2014 49


Ww profile

people&places

Endangered species: South Africa’s rhino population is under severe threat from poachers.

Playing a part in rhino conservation Democrat and general: Known to be extremely democratic up to a certain point, Leif T Løddesøl transforms into a general once a decision is reached. Here photographed inside Oslo’s new opera house. Negotiating agreements on difficult issues is very much his strength.

duties to the families and the company. We booked a private flight to return to Oslo the same night. In those days the Oslo airport was closed at night, but the control tower was told “We’re landing regardless”. Back at the office, crisis teams were established to enable us to work continuously night and day.’ Their tasks were tremendous. Not only were they to care for the victims’ families while tending to their own personal grief. There was also the onslaught of media and the question of keeping the liner operations going with more than half its staff deceased. ‘We divided the responsibilities between the team members. HR took care of the dependants and did a fantastic job. We told the media that “we will give you all the information that we can, but please leave the relatives in peace with their grief.” Retirees and others who could help were called in to keep the business going.’ The strategy worked, but the accident still remains a traumatic memory for all those involved. An opera without drama. By the mid 1990s, WW was once more heading back into normality. During a visit to Washington Mr Løddesøl received a phone call from the then minister of culture, Åse Kleveland: would he consider becoming chair of the board of the national opera and ballet?

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‘The question took me by surprise. I have always been interested in ballet, but opera? The combination of an old opera house, financial difficulties and ambitions to build a new opera house was however too tempting for a guy like me – so the answer was yes.’ ‘An expensive building for opera and ballet, considered by many as elite arts, and with the location in dispute was a challenge. A very democratic process was decided upon. There would be public funding and an open, international and anonymous competition on the design. All 246 entries were publicly exhibited in a hangar before the winner Snøhetta was proclaimed. The public loved it, and all differences disappeared,’ says Leif T Løddesøl. His last job? He retired as WW president in 2000 and as chair in 2003, but never stopped working for WW. In 2010, he was called once more, now to chair the joint steering committee for the ship operating companies owned by WW and partner Wallenius. There lies remarkable recognition of his integrity in the fact that both parties asked him to take the job, empowered to make decisions when and if the parters disagreed. ‘My intention was to serve for a period of six to 12 months, but I stayed for three and a half years. Having reached the mature age of 78, I think that is enough. But I like to work. Wanting to be useful is ingrained in my system, as is curiosity. But the pace will be different from now on’.

CAT-WWL and WWL participate in rhino conservation by contributing to providing tracking devices enabling the animals to be monitored 24/7, 365 days a year. South Africa: Prior to 2008, on average 20 rhinos were killed by poachers per year. Since then the numbers have soared, and to date 553 rhinos have been killed. If this trend continues South Africa may lose its entire rhino population within a few years. For some time now, the Wallenius Wilhelmsen Logistics branch office in South Africa and Groupe CAT’s joint venture, CAT-WWL have been supporting the protection of the animals by providing tracking devices fitted to their horns. Eight employees from the two companies were fortunate to partake in the tracking, darting and sedation of the animals necessary when installing the devices. This process is in no

way harmful to the rhinos. ‘We can happily report that the devices and the tracking equipment are working very efficiently and the reserve rangers can now know the exact whereabouts of the rhinos at all times,’

We also need to find ways of ensuring that what we do has a positive impact on the world around us. Trond Tonjum, vice president, Global Commercial

says Karen Redford, managing director of CAT-WWL. ‘To increase the protection of the animals, we have been requested by the game reserves and the rhino protection au-

thorities neither to specify how many animals that have had the devices fitted, nor the names of the parks,’ says Quentin Hill, head of WWL’s South Africa branch.

Once-in-a-lifetime: A unique experience for the CAT WWL and WWL team members (left to right) Preneshini Nair, Quentin Hill, Niran Sheoprosad, Sam Chetty, Naadiya Louise, and Sne Maphalala, with Scott van Staden (kneeling). They were allowed to follow the reserve rangers when tracking devices were fitted to the horns of several rhinos. WWWORLD 1 2014 51


people&places

Send us your good stories Have you got any stories or photos that you want to share with your WW colleagues either through WW World or the Wilhelmsen Intranet? Please send an email to ww.world@wilhelmsen.com

Rescued 22 at the Straits of Magellan

A forgotten drama came to light recently when Tønsberg’s Seamen’s Association was presented with a gold medal, a silver cup and a heroic tale. Text and photo: Einar Chr Erlingsen

WW history: Captain Kay O Myhre at Tønsberg’s Seamen’s Association is pleased to exhibit the gold medal and silver cup received by one of his predecessors in WW after a heroic salvage mission.

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Norway: On 16 April 1925 the steamer Trehawke from London ran aground off the western inlet to the Straits of Magellan during a ferocious storm. The strait is the sea route immediately south of mainland South America and north of Tierra del Fuego, and is infamous for being a difficult route to navigate because of the unpredictable winds and currents and the narrow passage. Two of Trehawke´s lifeboats were smashed when the crew tried to abandon ship. With only one life boat left the situation seemed rather bleak for the 24 men on board when the distress signal rockets were fired into the night. The signals were seen from WW’s ship Toluma, under the command of captain Harald Nilsen (1875-1945) who decided to try a rescue. The last remaining lifeboat was launched with most of Trehawke’s crew on board. As it reached Toluma it capsized and two of the crew disappeared into the waves. One of Tuluma’s lifeboats was launched with six Norwegian seamen on board under the command of 2nd officer Hans Ødegård and immediately started searching for the lost crew members, but in vain. Instead, it was decided to approach the grounded vessel to pick up the remaining crew. This operation went flawlessly in spite of the wind that by now had reached hurricane force. About one hour after the operation started 22 British sailors had reached safety on board Toluma and were later disembarked at Puntas Arenas. Toluma’s crew received great acclaim for their deeds, including

The Captain’s House: A former family home for a Maltese seafarer has become a respite for families with a disable member. From the left; administrator Joseph Gerada and funding and PR executive Antonella Agius Micallef.

Finding respite at The Captain’s House Gold medal: Two ounces of pure gold – received by captain Harald Nilsen in 1925. a silver cup with the following engraving: “Presented by The British Government to Captain Harald Nilsen, Master of the Steamship “Toluma” of Tonsberg in acknowledgement of his humanity in rescuing the shipwrecked crew of the British Steamship “Trehawke” in the Strait of Magellan”. Captain Nilsen and 2nd officer Ødegård also received gold medals from The Life Saving Benevolent Association of New York, while the six crewmembers in the rescue lifeboat each received 25 dollars in gold. As time passed the story turned into oblivion. It only reappeared last June, when the silver cup, gold medal and the story were presented to Tønsberg’s Seamen’s Association by captain Nilsen’s heirs. `We are immensely grateful. The memorabilia and the story will be exhibited at our own maritime museum to illustrate that good seamanship is nothing new to Wilhelmsen,’ says the association’s president, captain Kay Myhre, now retired after having spent most of his life in WW’s service.

We want to say “thank you” for the warm welcome we have received in Malta, says general manager Bjørn Havnes at Wilhelmsen Lines Shipowning Ltd. about his company’s support of The Captain’s House. Photos: Bjørn Havnes

name (Dar il-Kaptan in Maltese) is a foundation providing for respite (rest intervals) for those who are continuously caring for disabled family members. The former seafarer’s house is today home for 16 clients, staying for one week at a time, and up to 20 day clients. Dar il-Kaptan has a professional and well-trained staff. They look after the clients and monitor their mental and physical wellbeing in a homely environment. The staff put special emphasis in facilitating their daily living and social skills, and to develop and encourage self worth, confidence and independence. The clients’ disabilities vary. Therefore much effort is put into giving care that is discreet, sensitive and appropriate to the

needs of each individual, regardless of abilities, condition or behaviour. Dar il-Kaptan is a non-profit and non-government organisation. The costs are partially met through an annual grant from the Maltese Government. Additional income is raised through membership and registration fees, donations, charitable contributions, wills and fund raising activities. ‘Wilhelmsen Lines Shipowning Ltd has been in Malta sine 2008, and has a fleet of nine RoRo/car carriers. The two new buildings from Hyundai will also fly the Maltese flag. We have been very well received by the nation of Malta, for which we want to say thank you and “we care” by supporting The Captain’s House’, says general manager Bjørn Havnes.

Happy client: Isaac at the Captain’s House.

Warm welcome: The door handle at the Captain’s House.

Mtarfa, Malta: Behind the

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HR/OD

people&places WW to feature in Louis Vuitton stores

Awarded: (standing, from the left: Perumal Ganeshan, Nilesh Dalvi, Sandeep Sodhi, Kamaljeet Singh, Kisan Karnad, Felix Konnoth, Abel Reuben, Jai Prakash Singh, Thomas Villothe, Prabhakar More, Kizhakkepurathu Varghese, and Subramanian Srinivasan. Seated: Prakash Ramchandran, Bijay Yadav, Christopher D’souza, Christina Cheh, Naishadh Vachharajani, Kenny Lee, Yashoverman Sharma and Prabhat Kumar Mishra. Viljay Gaitonde was in Oslo and not present during the ceremony.

Employees honoured after 25 years of service Wilhelmsen Ship Management India recently honoured 14 employees who have completed 25 years of service and three others who have completed 10 years of service. Mumbai, India: Two employees

who work with Global HSEQ & Systems were also recognised for their 25 years of service with the Wilhelmsen group. Most of the awardees commenced their careers with WW at sea and later took up office positions. There are also some long serving office employees who have completed their entire tenure with WSM India.

Kenny Lee, VP-HR & OD and Christina Cheh, VP-Global HSEQ & Systems (both members of WSM’s central management team) presented the awards which consisted of a silver plaque and a letter of appreciation signed by WSM president Carl Schou. Jaime Pereira said in his welcome address that in today’s world where job

hopping almost has become the norm it is a tribute to our awardees that they have remained loyal and dedicated employees. Kenny Lee in his address recognized the role of not only the employees but also their spouses and families, many of whom were present to witness the awards ceremony.

A different kind of rolling stock For almost one hundred years, WW ships have carried

the famous Norwegian Line aquavit around the world. Now another producer of alcoholic beverages has landed on the same idea. Savannah, US: In 2006, Trey Zoeller, founder of Jefferson’s Bourbon, discovered that he could enhance the colour and flavour of his product by allowing it to age at sea. In 2013, Wallenius Wilhelmsen Logistics and Jefferson’s distributor, Castle Brands, loaded 64 barrels of bourbon on board one of their ships,

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where they spent the next four months travelling the world, rocking on the waves and breathing salty air. The result was the same as for the Line aquavit: the rocking had allowed the bourbon to pick up colour and flavour from the inside of the barrel, while stripping away the harshness of the alcohol. Since the ship had sailed across the Equator, the heat had caramelised the sugar in the barrel giving it a thicker feel, while a briny flavour had developed from the barrels being exposed to the sea air.

A maritime twist: Jefferson’s Bourbon is following in the wake of the Norwegian Line aquavit around the world.

A Wilhelmsen Lines historical ocean label has become part of a box set to be sold in Louis Vuitton stores worldwide. The vintage ocean liner labels that have been reproduced as post cards, come from the personal collection of Gaston-Louis Vuitton. The labels evoke memories from the golden age of shipping and popular tradition of sticking labels on trunks and other pieces of luggage. Wilhelmsen Lines was the trade name used for the company's global liner operations. Established in 1920 its world-renowned slogan was “For Speed and Service”.

That made his day! Some time ago, Wallenius Wilhelmsen Logistics Belgian branch office received a most interesting message from a young ”WWL admirer”. Antwerp: Nine year old Wies Deferm

explained in his letter that while on holiday at the Belgian coast he regularly sees the WWL vessels entering the port of Zeebrugge and requested some picture material so that he could hold a lecture for his class mates. Werner Van Dessel, who received the letter on behalf of WWL did more than that. Charmed by the enthusiasm of the young boy he invited him on board when the next vessel arrived in port. ‘The enthusiasm, drive and motivation demonstrated by Wies are important qualities that WWL is constantly encouraging and looking for,’ said Weerner Van Dessel after his young guest had returned to shore.

Young fan: Wies Deferm, head of ­operations Hendrik Sohier and chief officer Karl Fredrik Ekfeldt at the bridge of the visiting WWL vessel.

Building awareness about WW

Recruiting the best people is increasingly demanding, with tough competition in the industry. Our response to this challenge is to work systematically with employer branding, building awareness among students and potential employees about WW, our history and the values we represent. Text: K aia Means

slo, Norway: ‘To become a leading and attractive employer we need to make sure we target students and potential employees with the right messages,’ says Gry Brandsnes, head of people & process development, Global HR, and heading up the employer brand project initiated in HR Norway in 2013. ‘In order to recruit the best people to WW, it’s vital that we have a clear and strong message about who we are, what we do and not least what we can offer to potential and existing employees.’ “Broaden Your Horizons” is the new recruitment motto – and the results have been highly successful. The employer branding project started in 2012 with several surveys of the Norwegian market. The surveys provided intelligence on the perception of WW internally and externally including what students believe is interesting and important in a future employer. One of the surveys revealed, perhaps surprisingly, that 67% of the university student respondents in Norway had not heard of Wilh. Wilhelmsen, although the group has a long and central position in the Norwegian shipping industry. ‘We learned through the project and internal workshops that we need to communicate clearly that we are international, focus on competence development and opportunities, that we have a long-term perspective, an exceptional 150-year history and that we offer high quality products and services,’ says Brandsnes.

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Increased awareness. One of the main deliveries in 2013 was at the Ocean Talent Camp that was organised in connection with Nor-Shipping in June. The event was a success, and focused on a clearer message to the secondary school students through

different types of communication, including magazines with student readership. ‘At the same time, we are revamping our career site and our recruitment tools in Norway, highlighting the need to have a clear message across several channels to reach the long-term target, which is to be perceived as a preferred employer,’ says Brandsnes. ‘We have been established on LinkedIn and Facebook for a long time, but we will continue to work on our messaging and use other ways of branding ourselves including new ways of communicating through social media.’ An example showing the group’s new initiatives as an innovative competition for engineering and shipping students in Norway, using LinkedIn and YouTube to create engagement and interaction with students.

Summing up a long list of initiatives, Brandsnes concludes that the effort has paid off: ‘We have conducted a new “awareness” survey, and managed through our initiatives to increase the students’ recognition of the WW group by 20%.’

New initiatives creates results In a Norwegian survey ranking “the most attractive employers” WW climbed from non-placement to a current 48th place, showing that dedicated efforts based on a sound plan contribute to success. More initiatives are being planned for 2014, when the focus will be broadened to a global scope.

WWWORLD 1 2014 55


WW ACADEMY

Online learning to reach new peaks

courses, we have entered into an agreement with the company CrossKnowledge. The CrossKnowledge Faculty is made up of the best professors, authors and professionals of Management coming from the most renowned Business Schools such as Harvard, Stanford, IMD and HEC. Working with CrossKnowledge is giving WW employees access to high quality learning,’ says Lundwall. ‘We plan to combine our own in-house learning with “off-the-shelf” learning, as we believe that we can cater for a more diverse audience with different learning needs,’ says Bourgein.

A record 20 000 eLearning courses were completed in 2013. A new WW Academy online learning platform should bring that figure even higher in 2014, with integrated “off-the-shelf” online courses from leading learning providers.

WW employees will get access to online learning from the most renowned Business Schools such as Harvard, Stanford, IMD and HEC.

Text and photo: Håvard Solerød

slo, Norway: ‘A new Learning Management System (LMS) and an “off-the-shelf” library will take our online learning to even higher levels in 2014,’ said WW Academy learning managers Cristina Rynning, Emilie Lundwall and Michelle Bourgein when WW World signed in for a lesson on the latest WW Academy developments. The 2013 eLearning record of 20 000 courses was achieved on the six years old LMS platform that is now to be updated. ‘WW Academy had a new focus in 2013. We saw the need for someone to develop our in-house online learning and to improve our service to each business area. Michelle Bourgein, with a masters degree in eLearning has become our new “eLearning master”. Since then, participation has peaked beyond our expectations,’ say Rynning and Lundwall.

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More flexible and personalized. The learning managers describe the new LMS platform as “less system and more personal”, as compared to the old platform. ‘The new platform is a lot more flexible. To supplement our own tailor-made in-house 56 WWWORLD 1 2014

New opportunities ahead: WW Academy learning managers Emilie Lundwall and Cristina Rynning promise a lot of exciting online learning opportunities during the coming year. (Michelle Bourgein was unfortunately absent when the photo was taken)

Access across BA’s. The old LMS functioned mainly as a catalogue to browse for online courses. This will now be different: ‘One example: We haven’t used it as a knowledge sharing platform before. It has just been a place where we stored all our eLearning. We can now open up our in-house online learning across the entire WW group,’ says Rynning. The new LMS will be available in the early 2014. ‘Among the first things we will focus on is to provide a toolbox to support our managers during performance appraisals. The toolbox will enable managers to conduct more effective PAs. For example, if the PA identifies a training need for delegation skills, the “offthe-shelf” library from CrossKnowledge can provide the learner with a suggested list of courses,’ says Rynning. ‘The new eLearning platform will be an advantage in supporting the training needs for the 4SEA project,’ says Bourgein. So finally: what will be the biggest benefits with this change of focus? ‘More engaged employees. It is also about attracting and retaining the right people, and having a global reach as befits a global company. The quality of learning will improve a lot in the near future,’ say the three learning managers.

Three on eLearning 1: Which eLearning course did you take, and why? 2: How was your experience?

Sachin Gupta, WSS IT, Oslo 1: My most recent courses are Project Execution Model (PEM) and Train The Trainer (TTT). These were required before we attended the actual classroom training. 2: eLearning brings classroom style coaching straight at ones fingertips with just one click of your computer mouse. We can always refer back the courses to clear our doubts when they arise. I feel that eLearning cannot replace classroom coaching completely, where everyone can share their experience and learn from each other. However, eLearning can also be used along with classroom coaching.

Eric Holmes, WSS, product marketing manager, Oslo 1: I have taken a number of courses, among them Governance Boiler and Cooling Water Technical, Project Execution Model (PEM), and Performance Appraisal to supplement my knowledge and be in line with company guidelines. Currently we are preparing new courses for the new WSS Portable Water Test Kit, and on general safety and the handling of chemicals.

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2: I am comfortable with the eLearning experience and believe that it is a very cost effective way to train in large international organizations.

Stella Koh, WSS accounting manager, Singapore 1: Governance Challenge, Individual Security Awareness, My WW4net Computer, WSS Anti-Corruption, Introduction to GIMs, Introduction to finance and budgeting, AOP, how to use Manager Self Service, OFAC Bridger Insight XG Screening, Office of Foreign Assets Control, Finance Champion, Giving effective feedback, Introduction to Safety Products (in progress) Two of these courses are required by HR. I take others to improve communications and get a better understanding of the company's business. 2: Some of the courses are very interesting with hands on activities (eg. WW4net Computer). Some have longer loading time and no instructions for "press the forward button". It causes a lot of waiting time. The feedback has been good; fast responses and actions taken when necessary.

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WW GOVERNANCE

It’s just the way we do business

Focus on business standards and ethics has increased sharply in the past decade to become a movement. Governance, transparency, compliance and whistle-blowing are but a few of the topics being discussed in boardrooms around the world. BY Asta Stenhagen

here is this all coming from? It derives from the toughening business environment. To compete in international business one must stand out. No serious international company can afford to tolerate shady business practices if they want to be competitive and stay in business. The WW group is a diverse organisation with many types of business activity employing nearly 23 000 people, including joint ventures. Group CEO Thomas Wilhelmsen and his global management team have initiated a global project to further strengthen our business practices. The project will focus on implementing a revised Code of Conduct, new whistle-blowing procedures, a revised theft and fraud policy, a new anti-corruption policy and revisions related to competition law. An important element of the program is revised procedures and channels for giving notice to the company about potential non-compliance, e.g. corruption, theft or fraud. These are serious issues that would not normally be given notice to and dealt with by the immediate manager. For example, what should an employee do if he observes a colleague or manager doing business with a friend on terms that are not based on fair practice? The policy and policy description provide clear guidelines for this type of incident. The WW group is strongly committed to this development for two reasons. Firstly, as a leading global maritime group, WWH must meet the expectations of its customers in more than 70 countries. This requires a set of business standards that apply to every individual, both employees and business partners. The second reason relates to the group’s vision of shaping the maritime industry. While being a shaper means many things, one of them is being in compliance with the applicable laws and regulations, both existing and anticipated. Our commitment to sound business standards helps us to get the right results in the right way. It’s just the way we do business.

Good compliance is good business

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New global program: Wilhelmsen Ships Service is in the process of implementing a global program to further improve its compliance performance. Monica Silvia Valm is compliance manager in WSS. (Photo: Don Pyle)

Wilhelmsen Ships Service serves half the world’s merchant fleet. The maritime industry where we as well as our customers operate, is subject to the toughest anti-bribery and competition legislation in the world. By Monik a Silvia Valm

F One set of business standards: ‘Being a shaper of the maritime industry also means being in compliance with applicable laws and regulations,’ says Asta Stenhagen, legal counsel and project administration manager for governance implementation, Wilh. Wilhelmsen Holding. (Photo: CF-Wesenberg @kolonihaven.no)

urther, because of the vast geographical spread in our operations, a complex array of local laws and customs apply. We also need to keep track of the OFAC, UN and EU economic sanction regimes. The maritime industry of today does not reward breaches of business standards, quite the opposite. Companies with solid and well documented systems of governance are the winners. Organisations with high standards of business and focus on compliance enjoy better reputations and are preferred by their customers. The reason for this is that most companies are part of a value chain where they have both supplier and customer roles. A central principle in anti-bribery regulation is that a party may be held responsible for the actions of its contractors, customers and suppliers unless the party can demonstrate that it has taken adequate measures to avoid the violation. Therefore, conducting due diligence and knowing ones counterparties becomes essential. Wilhelmsen Ships Service seeks demanding, professional customers because they will gain most value from our global network and challenge us to new levels of excellence. We have a well defined system of business standards and compliance routines that are built into every tender we give. This ensures that we will meet the customers’ expectations as a reliable business partner. Their risk is

reduced and the value that Wilhelmsen Ships Service delivers is increased. It’s a winning combination and makes us more competitive. Good compliance is good business. A new toolbox. We are in the process of implementing a global program to further improve our compliance performance. Part of the program is a toolbox containing risk mapping tools, questionnaires, guidelines for identifying the right stakeholders, problem solving scenarios, due diligence tools and awareness training tools. With the commitment of every manager and employee in Wilhelmsen Ships Service we strive towards becoming an even more valued partner to our customers.

Conducting due diligence and knowing ones counterparties becomes essential WWWORLD 1 2014 59


YOUNG TALENT

It’s the ­challenges that make me love my job so much

Important to be a service provider Cynthia Chan, senior ships agency coordinator at Wilhelmsen Ships Service in Hong Kong, makes sure her customers experience every port as if it were their home port. Text: K aia Means Photo: David Paul Morris

ong Kong: Just a year after Cynthia Chan joined WSS at the age of 21 in 2008, she was moved from the Marine Product department, and assigned to handle a new contract, where Wilhelmsen Ships Agency was to be the first contact point for a major Hong Kong-based customer managing 200 vessels. ‘Since then, my life has changed,’ says Cynthia. With a Bachelor’s in logistics engineering and management, she is now a global agent, coordinating and monitoring the communication between customers and local port agents. ‘Basically my job is still about customer service, however I’m no longer delivering something tangible like I was in the Marine Product department. Ships Agency is all about relationships built on trust and experience,’ she says. Customers approach Cynthia concerning any needs they might have, including vessels entering ports, changing crew members, engine spare parts. She needs to ensure that local port offices around the world provide correct information and carry out the required services in a timely fashion.

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Every port is home port. ‘The most important part is to make sure everyone in every office provides the same level of service to my customers, so they can feel like they are in their home port, even though their ships sail around the world.’ In July 2010 the SARD campaign (Ships Agency Re-Defined) was launched, offering the global agent as the first point of contact. Cynthia participated in the trial of the cam60 WWWORLD 1 2014

paign before it was officially announced. As the entire network was not familiar with the concept at the time, there was a lot of communication needed, and many hours spent on the telephone. Every night she stayed late at the Hong Kong office to communicate with different local offices and Norway headquarters. ‘Being new to the concept, I asked a lot of questions. That not only enriched my knowledge, but sometimes my opinions also triggered some changes. That made me feel like I’m contributing to this new business,’ she says. ‘This also gave me the opportunity to develop my problem-solving skills, and this is what I like most about my job.’ Despite the long work hours, she lives an active life in her spare time, with wake-

Good colleagues: Cynthia Chan (to the right) with colleagues Salome Yeung (middle) and Joyce Chan at their Hong Kong office.

boarding, swimming and cycling being just some of the activities she loves to fill her weekends with. Training Global Agents. Last June she was promoted to senior ships agency coordinator, working with a team of four, and handling about 200 SARD port calls a month. She is also travelling across Asia to ensure that new Global Agents are working as efficiently as possible. ‘It’s the challenges that make me love my job so much,’ she says. ‘I enjoy dealing with people from different cultural backgrounds, and it’s great fun to see how they respond differently on the same case. And when we manage to build trust and ensure our customers’ peace of mind, the satisfaction is priceless.’

Just like home: ‘All customers should feel like they are in their home port, even though their ships sail around the world,’ says senior ships agency coordinator Cynthia Chan. WWWORLD 1 2014 61


The World as I see it CHRISTOPHER CONNOR The way the world looks depends largely on where you are. In order to balance the traditional head office view, WW World is challenging managers from our worldwide organization to give their views on the market situation, current events and other subjects of interest.

Our guest this time is Christopher Connor, who took over as President & CEO of Wallenius Wilhelmsen Logistics after Arild Iversen in July 2013.

Changing perspectives Norway: Over the past year, life has shown me a kaleidoscope of changing perspectives, both in my personal and in my professional life. Moving back to Oslo (where I lived previously from 2001-2004) after ten years back home in the USA, certainly provides a different vantage point than my hometown of Gladstone, New Jersey. With the youngest of my three sons headed off to College this past August (and the oldest two already out of the house and embarking on their own careers), my wife and I had been anticipating life in our country house as “empty nesters”, and looked forward to discovering what would surely be the bittersweet aspects of that life change. Then suddenly, the chance to be at the helm of WWL comes along, and within what seemed like just a few short weeks, I was up and running as CEO, and happily living in an apartment in Oslo. Things can change quickly in life, and you cannot always be in control of those changes. What you can control in life however, is your attitude and your effort. For me, this is one perspective that never changes. But never mind where we are, we need to always take a global, around the clock perspective on our exciting industry. The majority of our customers operate truly global companies, with manufacturing spread over multiple continents. Wherever they operate in the world, WWL has people on the ground to support their business. There is always trade somewhere. The clock never stops ticking, our vessels never stop running, and the movement of cargo between factory and destination is 7X24X365. 62 WWWORLD 1 2014

And this global environment is constantly evolving. As a truly international business and bellwether for global market trends we feel directly changes in consumer behaviours, raw material prices, relative currency values, labour rates, and the fiscal stability of trading nations around the globe. Markets are increasingly unpredictable and competition is becoming more intense. The true measure of success in this environment is to be able to not just ride the waves of the markets up and down, but instead create a resilience and flexibility that enable us to stabilize and lift our performance. In this environment it’s important that WWL is committed to operational flexibility and efficiency like never before. How we use our assets can make a huge difference on the bottom line. While there is nothing particularly profound in that statement, it has translated into a renewed willingness and sense of urgency to re-engineer our trading networks as a way of creating capacity, allowing us to either charter out, employ in new trades, or simply defer investments over time. We also need to be very conscious about where and for what we use our resources. In WWL we have adapted an ‘Organizational Road map’ approach to achieving a more sustainable long term cost structure. We are focused on being proactive in our organizational planning, with the objective to avoid ‘reactionary’ measures during business cycle downturns over the medium to long term. Whatever changes come, we need to stay a step ahead. With our global presence and the strength of our owners’ group companies, I like our chances for continued success.

How we use our assets can make a huge difference on the bottom line CHRISTOPHER CONNOR, PRESIDENT & CEO OF WALLENIUS WILHELMSEN LOGISTICS

Whatever changes come, we need to stay a step ahead CHRISTOPHER CONNOR, PRESIDENT & CEO OF WALLENIUS WILHELMSEN LOGISTICS WWWORLD 1 2013 63


historic corner

Wilh. Wilhelmsen was established as an independent company in 1861 and celebrated its 150th anniversary in 2011. WW World would like to share some of the company’s long and exciting history with its readers. Readers with stories to share or feedback to give are welcome to send an email to ww.world@wilhelmsen.com.

Shaper of the maritime industry In the 1970s, WW founded two maritime service agencies – Barwil (ship agencies) and Barber International (ship building & ship management). Both companies showed excellent development and at the millennium they were among the world’s largest in their fields. Text: Hans Chr. Bangsmoen

Acquisition of Unitor: This proved to add a very successful strategic dimension to the development of Wilhelmsen Maritime Services. (Photo: WW photo archives)

slo, Norway: The idea of merging the two companies to one maritime service agency came up from time to time, and in 2004 the board of WW concluded that a new company structure would provide synergies and increased volumes. Huge resources were spent on the merging process with strong involvement from everybody in the organization and in close cooperation with clients across the globe. In January 2005, Wilhelmsen Maritime Services (WMS) was a reality and Dag Schjerven, with an industrial background, was appointed leader of the new company. The vision of WMS was to become “The shaper of the maritime service industry”. WMS had a global network at its disposal where local knowledge could be combined with global competence. WMS became a maritime warehouse with more than 3 000 employees.

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In its strategic deliberations the board of WW had emphasized the need for two strong business areas. WMS was in the process of replacing tank, bulk and offshore as one business area, but it was not sufficient to balance the car carrier and Ro/Ro activities. WW turned its attention to a well-known ships supplier, Unitor. Following extensive negotiations, especially regarding the price, the company was acquired. WMS had now become a maritime competence centre with 4 500 employees, 340 local offices and 150 agents in more than 80 countries. The establishment of WMS and the acquisition of Unitor soon proved to be very successful strategic decisions, especially because the markets developed strongly the first years with annual growth of between 15 and 20 per cent. Whereas the total turnover of the companies that constituted WMS was MUSD 105 in 2004,

it had risen to an incredible BUSD 1, four years later. Further concentration on technology and engineering competence resulted in the acquisition of Swedish Callenberg in 2008. The company was re-named Wilhelmsen Marine Engineering. That same year, WMS gathered all its brands under one umbrella and introduced the name Wilhelmsen to strengthen the link to the WW group and WW’s own identity. ➜➜Wilhelmsen Ship Services ➜➜Wilhelmsen Ship Management ➜➜Wilhelmsen Ship Equipment ➜➜Wilhelmsen Marine Engineering The last two companies were merged in 2010 under the name Wilhelmsen Technical Solutions. Today, WMS is the world’s leading provider of maritime services. The vision from 2005: “The shaper of the maritime service industry” has definitely come true.


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