no. 1 2010 â€“ 23rd year corporate magazine for the Wilh. Wilhelmsen group
THE NEW FACE OF CHINA EXCLUSIVE
A bosun at sea and at home
True to his values
Reorganising shipping and logistics
WW group CEO Ingar Skaug is retiring this October. He leaves a very different company from the one he joined more than 20 years ago.
Meet Thomas Wilhelmsen, Jan Eyvin Wang, Nils P. Dyvik, Sjur Galtung and Wilhelm Wilhelmsen on pages 10-17.
COVER PHOTO: China is presenting a new face to the world; young, enthusiastic and proud. Meet Jennifer Xu, head of HR/OD globally for Wilhelmsen Ships Equipment (pages 54-57) See also our special China section on pages 28-43. (Photo: Oscar Malpica)
contents No 1 2010
04 WW MILESTONES
Published by: Wilh. Wilhelmsen ASA Corporate communications NO-1324 Lysaker, Norway
09 CURRENT AFFAIRS
Publisher: Group vice president Bjørge Grimholt Editor: Arild S. Johannessen Editorial contributors: Hans Chr. Bangsmoen Arild Iversen Knut Brathagen Arild S. Johannessen Christopher J. Connor Oscar Malpica Peter Dexter Kaia Means Bjørg Ekornrud Don Pyle Einar Chr. Erlingsen Axel Rohrssen Karin T. Erlingsen William Ross Ray Fitzgerald Rupert Saunders Eamon Gallagher Henrique Schlaepfer Benedicte Gude Stacey Trodal Dag Ivar Indrebø Marianne H. Wang
This will be my last comment in this magazine from my position as group CEO in Wilh. Wilhelmsen. This autumn I will retire and leave my post to Thomas Wilhelmsen. I wish him the best of luck in a demanding, but also very fulfilling position.
18 PEOPLE & PLACES Meet football icon Zlatan Ibrahimovic on Malta, and see the Norwegian pavilion at the Shanghai EXPO.
For me, a more than 20-year-long voyage as a WW employee is coming to an end. It has been challenging years and together we have experienced both smooth sailing and heavy seas. I am proud and pleased that the WW “vessel” has grown considerably since I joined the company in 1990, as president of Wilhelmsen Lines.
22 A MAN OF VALUES When WW group CEO Ingar Skaug retires on 1 October after 20 years, the Wilh. Wilhelmsen group has been changed in almost every way.
28 SPECIAL REPORT:
Today, the WW group is a world leader in ocean transport of rolling cargo. The joint-venture with Swedish Wallenius Lines has celebrated its 10th anniversary, and Wallenius Wilhelmsen Logistics is a global leader in factory-to-dealer logistics for the automotive industry. The acquisition of the car carrier division of Hyundai Merchant Marine has produced the rapidly expanding EUKOR. American Roll-On Roll-Off Carrier (ARC) shows steady growth within its market segment as an international US carrier
Wilh. Wilhelmsen has a strong presence in the world’s largest emerging economy. We have visited some of our operations in Shanghai, Beijing and in the Guandong province – and the world’s largest exhibition – Expo 2010.
A career at sea totally changed the life of bosun Rodel Adriano.
Circulation: 8500 copies
48 STREAMLINING PORT CALLS
Technical Publisher: Forlaget Media AS, NO-3110 Tønsberg, Norway
Shipping and logistics in the WW Group have been restructured to become even more competitive and streamlined than before.
44 BOSUN RODEL’S TWO LIVES
Printer: TS Trykk, printed on paper approved by The Swan, the official Nordic ecolabel
The show must go on
10 NEW STRUCTURE
Design and layout: Red kommunikasjon AS
I am also very pleased with the progress of Wilhelmsen Maritime Services, which since its foundation in 2005 has grown tenfold in revenue and become a billion dollar company.
Two new initiatives from Wilhelmsen Ships Service will save time and money for ship operators all over the world.
52 ONE STOP SOLUTION Peugeot in Australia chose to outsource all its logistics to WWL.
54 tiny, but tough
Meet Jennifer Xu in our WW profile interview. WW is launching a total leadership development package and a rewards programme.
You've got news? Give us a tip! Please send an sms or call +47 481 91 921 or +47 934 01 974 for stories that you might think are interesting in WW World. You may also contact us by email: firstname.lastname@example.org. Since our group consists of our 14 000 employees located in over 70 countries worldwide, we are dependent on you telling us in the editorial staff what's going on. Tip of the month will be rewarded with 250 USD.
60 DEVELOPING the SHAPERS WW Academy offers senior leaders a recipe for driving innovation and change.
61 10 QUESTIONS Senior vice president Mette U. Bakke explains what makes a global, in-house IT network tick.
62 FIRST LADIES Meet the two young ladies who are Korea’s very first female cadets. Area director Henrique Schlaepfer of WSS, South America, sees the world from a different perspective. In the 1970s WW took the step into the offshore oil industry.
2 WWWORLD 1 2010
Thank you all for your continued support and effort for the company and for me. Godspeed.
63 THE WORLD as i see it
64 WW HISTORY
But most of all I will remember all my fantastic colleagues in WW all over the globe, that I have had the pleasure to work with during these 20 years. Today, we are a truly value-driven company, with competent management and employees that emphasise stewardship, empowerment, collaboration, innovation and customerorientation. Next year the Wilhelmsen group will celebrate its first 150 years. This year we are trimming the sails in order to become an even tougher competitor in global shipping with the creation of the new pure shipping and logistics company Wilh. Wilhelmsen ASA. The show must go on, and I am confident that this is the right move to position the group for further growth when the global markets are finally picking up again.
58 LEADERSHIP DEVELOPMENT
The CEO's letter
10 WWWORLD 1 2010 3
WWmilestones Electronic bill of lading system for EUKOR Korea: EUKOR has recently launched an elec-
tronic bill of lading system in cooperation with The Korea International Trade Association (KITA) and Hyundai Motor Company (HMC). The purpose of this new system is to change from traditional paper-based trade processes to electronic based, all the way from cargo loading until Bill of Lading collection. Hence, all papers will be issued and circulated to the form of electronic data, which increases the efficiency of the business process in terms of time- and costs savings, as well as reducing environment impact. “This is an important first step in the shift from paper based documentation to electronic based documentation,” said Mr. Young-Ki Park, Head of S & T team in EUKOR. “We expect this new system to trigger wider use of electronic trading with our customers in the future.” (Source: EUKOR News)
➜➜Reduced green house gas emissions by 32%
➜➜Reduced sulphur dioxide emissions (SO2) by
135 000 tonnes over 9 years
➜➜Performed Supply Chain Optimization study with
Indian automaker Tata Group ➜➜Sponsorship of WWF High Seas Conservation Programme ➜➜For more information and the complete online report, please see www.2wglobal.com/esr
Sulphur Emissions Saving 50 000
out of lay up: M/V Toba was one of the vessels taken out of lay up during the first quarter of 2010.
45 000 40 000
Number of vessels decreasing As of end April 2010, Wallenius Wilhelmsen Logistics (WWL), EUKOR Car Carriers and American Roll-on Roll-off Carrier controlled a total of 132 vessels, down from 151 vessels by end April 2009. Norway: In terms of car equivalent units, the
Great step forward: From the launching of EUKOR's new electronic Bill of Lading system. (Photo: EUKOR)
WWL cuts greenhouse gas emissions by 32%
companies had a total capacity of 730 000 CEUs down from 796 000 CEUs for the same period last year. During the first four months of the year, eight vessels were redelivered to owners. Due to the promising outlook for cargo volumes, Wilh. Wilhelmsen and partner Wallenius Lines reactivated five vessels in WWL from lay up, reducing the number of vessels in lay up to ten.
“Shipped volumes increased by some 24% in the first quarter of 2010 compared with the same quarter last year,” says Ole K Bærvahr, vice president shipping in Wilh. Wilhelmsen. “We expect volumes to continue to increase and also that more vessels will be taken from lay up to active service.” In addition to its newbuilding programme, Wilh. Wilhelmsen is also exploring other opportunities for tonnage renewal. In April, the group took in two modern 6 400 capacity vessels for up to 10 years time charter at favourable rates. The vessels were chartered by a company owned 50/50 with Wallenius Lines, and will commence service for the operating companies.
Not only did Wallenius Wilhelmsen Logistics cut its greenhouse gas emissions by an impressive 32% last year. The company also released the shipping industry’s first-ever certified GHG emissions inventory report. Oslo, Norway: Wallenius Wilhelmsen Logistics (WWL) also cut its sulphur dioxide emissions (SO2) emissions by 135 000 tonnes in a nine year period from 2000 to 2009, an amount nearly equal to all the SO 2 emissions from road vehicles in the United States for an entire year. “Even in times of global economic crisis, we must continue
35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 01
So 2 emissions (tonne)
SO 2 saving
to build value for our customers,” declared Arild B. Iversen, CEO of WWL. “An efficient supply chain, with reduced environmental risks in every possible step, is one of the surest ways to cut costs while benefitting the environment.” The figures cited above are contained in the company's 2009 Environmental and Social Responsibility Report, the shipping industry’s first emissions inventory report to receive 3rd party verification that it conforms to the accounting requirements of ISO 14064-1 and the Green House Gas protocol. Melanie Moore, global head of environment and quality at WWL commented: “We are working hard to minimise our environmental footprint by working closely with our customers to reduce their carbon risk in the supply chain while creating real economic and brand value." “There are many environmental challenges that we need to confront, but we will continue to be bold enough to address them by ensuring we remain an environmental forerunner,” Ms. Moore concluded.
WSM establishes joint-venture with Golar
Ballast water treatment system approved by IMO
Golar LNG and Wilhelmsen Ship Management have agreed to set up a joint-venture company – Golar Wilhelmsen Management AS.
Wilhelmsen Ships Equipment's Unitor Ballast Water Treatment System (UBWTS) passed a major milestone on 23 March 2010 when it was awarded Final Approval by the International Maritime Organisation (IMO).
Norway: Golar LNG is one of the world’s largest
independent owners and operators of LNG carriers with over 30 years of experience. The company developed the world’s first Floating Storage and Regasification Unit (FSRU), based on the conversion of existing LNG carriers. Wilhelmsen Ship Management (WSM) is currently technical manager of nine LNG vessels owned by Golar. With this new joint-venture, WSM will be a leading provider of ship management services within the global LNG market.
4 WWWORLD 1 2010
All in all 10 LNG vessels and 3 FSRUs will be operated by the new company, including the FRSU Golar Freeze, coming on stream in 2H10. WSM has operated LNG vessels for Golar since 2005. “The new structure benefits from the economies of scale of bringing the fleet together under one ship manager. We are proud of the confidence Golar has shown us as ship managers in the process of setting up the new company,” says general manager Håkon Lenz in WSM Europe.
“In addition, the new company provides Golar with more day-to-day involvement, which is important particularly with FSRU vessels and other non-standard LNG carriers – and at the same time provides the benefits of the resources of a large ship management organisation, says Graham Robjohns, CEO of Golar LNG Management Ltd. The actual transfer of the LNG vessels and FSRUs to Golar Wilhelmsen Management AS will take place from late July and throughout August 2010.
Wilhelmsen Ships Service has noted a 13% increase from February to March in the number of port calls made for the provision of the company’s ships agency services.
United Kingdom: The significance of this achievement is not to be underestimated. It is an endorsement of the technology by the most stringent review body in the industry. Final Approval follows from Basic Approval, which was awarded in 2008. The Final Approval process looks at the safety of the system in terms of the crew, the vessel and the environment.
Although it is called the 'Final' Approval, there is still one last approval process to complete: Type Approval. This process examines whether a system can meet certain performance standards for treating ballast water. It is awarded by the Flag State, which in this case is South Africa. Central to the Type Approval are a series of three shipboard trials. The final one was performed at the end of May this year, after which it will take several weeks for the results to come back and for the application to be processed. The Type Approval Certificate is anticipated in July. When this step is completed, The UBWTS will have all the required approvals.
WWWORLD 1 2010 5
All Dyvi car carriers to WSM The Norwegian ship owning company Dyvi A/S has transferred all technical management of its fleet of car carriers to Wilhelmsen Ship Management (WSM). NORWAY: The agreement includes full technical
management of the car carriers "Dyvi Atlantic", "Dyvi Baltic", "Dyvi Adriatic", "Dyvi Pamplona" and "Dyvi Puebla". The vessels have a capacity in the range of 4000 to 6700 car units. “We are both proud and humble over the trust Dyvi
has placed in our technical management skills, and will do our utmost to live up to their expectations,” says Håkon Lenz, general manager for Wilhelmsen Ship Management Norway. Four of the vessels will be operated from Norway, the fifth by WSM in Malaysia. As part of the agreement, some key personnel from Dyvi's technical department will be offered new positions with WSM. Jan Erik Dyvi, the founder of Dyvi AS, is among the pioneers in the maritime industry with extensive newbuilding experience from the construction of about
30 prototypes and/or special-purpose vessels including the construction of the first roll-on roll-off PCC. Dyvi A/S is a fully integrated ship owning company, focused primarily on the car carrier segment, with ships on time charter to some of the best-known companies in the business. “We look forward to cooperating with WSM, which has extensive experience in the operation of car carriers. We are therefore confident that our fleet of vessels will be operated at the highest standards and efficiency,” says Kaj Berge, operations director at Dyvi.
DYVI ATLANTIC: The ship was built in 2009 and is the newest among the five Dyvi vessels now on full technical management with Wilhelmsen Ship Management. (Photo: Dyvi).
Taronga: Delivered in 1997, Taronga was the first (and only, it would later appear) of WW's Mark III generation of ro-ro's. She proved to be a highly efficient ship, soon to be nicknamed ‘the ultimate cargo machine.’ She was built to carry a combination of traditional ro-ro cargo and containers. (WW archive photo)
Endurance: The former WW ship in her new ARC colors. (Photo: ARC)
WSS acquires CMU in Chile
First Lexus cars to Pyeongtaek
Wilhelmsen Ships Service reports that construction of the port expansion project in Rotterdam is running smoothly.
Wilhelmsen Ships Service has acquired Compañia Maritima Unitor (CMU) in Chile.
The Netherlands: WSS manages 14 vessels that support the Maasvlakte 2 land
Chile: The new company, operating as Wilhelmsen Ships Service (Chile) SA, continues to offer the full range of Unitor products that were previously supplied through CMU. The company’s capabilities include warehousing in Valparaíso and it is able to deliver a wide range of safety products, marine chemicals, welding equipment and other associated marine products to all of Chile’s main ports.
Korea: On April 21, the very first Toyota cars rolled out on Pyeongtaek International Ro-Ro Terminal (PIRT - jointly owned by EUKOR and Wallenius Wilhelmsen Logistics), after being shipped from Japan by Toyofuji. The historic event is following the contract made between PIRT and Toyota / Lexus to use Pyeongtaek port as import port for all Toyota and Lexus volumes into Korea, and annual volume is expected to be 14 000 units. This first discharge was celebrated with a port ceremony with representatives from PIRT, Toyota / Lexus, EUKOR, and WWL. (Source: EUKOR News)
6 WWWORLD 1 2010
In a re-naming ceremony in the Port of Baltimore, former WW ship M/V Taronga became M/V Endurance, thus marking the transition to her new owners, American Roll-on Roll-off Carrier (ARC). USA: The M/V Endurance is the largest
1000 hectares of new land reclamation project, operated by contractors van Oord. The project involves land reclamation in the North Sea and dredging of the port basins to expand the existing port and industrial zone on the west side of Maasvlakte to provide 1000 hectares of new land for port activities and industry. WSS is managing the formalities of co-coordinating with port authorities, customs, immigration and other areas of port liaison. The company also handles all husbandry issues such as crew changes, and sludge and waste disposals.
Taronga to ARC under new name
and most militarily useful multi-purpose ship to the U.S.-flag commercial fleet. At the re-naming ceremony, ARC Chairman & CEO Ray Ebeling welcomed a number of prominent guests to the Helen Delich Bentley Port of Baltimore, including the Honorable Ms. Bentley herself. Also among the guests was Congressman Scott Garrett, Representative of the New Jersey Congressional district. General Duncan McNabb, commander of U.S. Transportation Command at Scott Air Force Base, delivered the keynote address. He noted the sheer scale and versatility of the vessel and the importance of such tremendous new strategic sealift capacity to the U.S.-flag commercial fleet. Mrs. Linda Worley McNabb served as the lady sponsor of the ship, and performed her christening duties admirably. The addition of the Endurance further enhances ARC’s position as the largest U.S. flag ro-ro operator in international trade, and the third largest U.S.-flag international carrier overall. ARC now operates nine ships.
First Toyotas: From the welcoming ceremony on Pyeongtaek International Ro-Ro Terminal. (Photo: EUKOR)
WWWORLD 1 2010 7
New weekly service from Europe to China
10 000 liferafts serviced
Korea: At the beginning of this year, EUKOR Car Carriers launched a fixed weekly service from Europe to China. The service commences from the main loading ports Wallhamn, Bremerhaven, Antwerp and Southampton in Europe to Shanghai, Xingang and Huangpu (Tianjin and Guangzhou) in China. From China, the voyage continues to Korea. (Via Japan every 2nd week). (Source: EUKOR News)
Following the success of Wilhelmsen Ships Service Liferaft Exchange Programme, four new servicing stations have been established, two in Japan and two in Spain. Norway: This brings the number of servicing stations up to 30, covering 700 ports. According to plan, a further 10 stations will be added before the end of 2010. Since being launched at the end of 2008, the programme has made approximately 10 000 liferaft exchanges and continues to expand, according to Dave Evans, product marketing manager Life Saving & Survival at WSS. The concept exchanges service-due liferafts and life-saving appliances for operational ones, takes better control of costs and reduces the chance of getting caught out by unforeseen service dates and costly weak links in the supply chain. The solution was developed as a result of customer requests and is a step forward in increasing the customer’s operational efficiency.
1/20 Korea: Hyundai Motor
Liferaft swap: A serviced container ready to go on board.
Volkswagen awards WWL contract for new car plant Wallenius Wilhelmsen Logistics (WWL) has been awarded the vehicle processing and yard management business at Volkswagen's new plant in Chattanooga, Tennessee. USA: WWL will provide the Volkswagen plant with outbound yard
management and vehicle-processing services, including technical services and value added accessory installation, vehicle releasing, distribution and rail loading. Production is expected to begin in the first half of 2011. The plant has the capacity to produce up to 150 000 units annually. Frank Fischer, chief executive of VW's Chattanooga operations, termed the services "a crucial aspect" of production. “WWL manages similar operations for eight other North American assembly plants,” said company spokeswoman Inna Getselis. “We're the leader in the auto industry,” she said. WWL already provides Volkswagen with supply chain management services in South Africa, as well as ocean transportation services in Europe, Oceania and Africa.
8 WWWORLD 1 2010
Company saw total 2009 sales rise 11.7 % year-on-year to 3,106,178 units. With these sales figures, the global market share of Hyundai reached 5.2% in 2009, breaking 5% for the first time. (Source: EUKOR News)
New WW web site Norway: As the
restructuring of the Wilh. Wilhelmsen group is moving forward, a new web site was recently launched for the shipping and logistics part of the group.
Check it out at www.wilhelmsenasa.com
Changing markets for WWL Wallenius Wilhelmsen Logistics has redesigned its global services over the past year due to changing trade volumes, especially from Asia. Text and photo: Kaia Means Norway: WWL CEO Arild B. Iversen sees improved results from Asia to Europe, healthy volumes to Australia and New Zealand, and slowly improving results from Asia to North America. The past six to nine months have entailed a significant change in the way WWL designs it services, mainly due to reduced volumes from Asia. No contract lost. “Since September 2009 we have seen a slow and steady improvement,” says Iversen. “The good thing is that during the crisis we haven’t lost contracts. Our customers are continuing to look for new solutions. Another trend is more focus on supply chain management and logistics, and to a lesser degree pressure on rates. Our main customers are selling more than they forecast every month. It’s a good sign that their inventories are gone, and that their end customers are slowly becoming more optimistic.” Australian growth. So far this year trade
to Australia has picked up more than the other trades. “I think it's fair to say that this market is what has kept WWL in the game during the crisis, and also now is helping us slowly toward a steadier and more stable situation,” says Iversen. In all markets, cars have come back quicker than the other cargoes. In China, cars are selling extremely well. “We need Asia to Europe to return to something we can call normal in volumes and liner activities. We also need Asia to North America to pick up, maybe double in volume. We need a better balance on the Atlantic. This is not done tomorrow. The important thing is to offer our customers excellent service and not to lose contracts, which we still haven’t done.
LIGHT AHEAD: There is definitely a bright light at the end of the tunnel, and Wallenius Wilhelmsen Logistics CEO Arild Iversen is confident that its not a train that's approaching. Although the signals are still mixed, things are definitely pointingin the right direction for his company at present.
"We need Asia to Europe to return to something we can call normal in volumes and liner activities. We also need Asia to North America to pick up, maybe double in volume" Mixed signals. “We’ve seen some surprisingly good figures in March,” says Iversen. “For land activities in North America we had our best month ever in March. Australia is
back to the contribution level it had in the good years in 2006-2007. There are clear positive signals, but not everywhere.”
WWWORLD 1 2010 9
Restructuring for future growth The shipping and logistics part of the Wilh. Wilhelmsen group will from the second half of 2010 be carried forward as a separate entity, the new Wilh. Wilhelmsen ASA. At the same time a partly new senior management will take up their positions and restructure for further growth from a new holding company, WW Holding ASA. Text: Arild S. Johannessen and Benedicte Gude Photo: Kaia Means
In position: Jan Eyvin Wang, president and CEO WIlh. Wilhelmsen ASA (left), Thomas Wilhelmsen, deputy group CEO and Nils Petter Dyvik, group CFO Wilh. Wilhelmsen Holding.
10 WWWORLD 1 2010
WWWORLD 1 2010 11
W World has
spoken to three of the most pivotal persons in the restructuring process, Thomas Wi l hel m s en, Nils Petter Dyvik and Jan Eyvin Wang. Thomas Wilhelmsen will from 1 October replace Ingar Skaug as group CEO, Nils Petter Dyvik will become group CFO in the new Wilh. Wilhelmsen Holding, and Jan Eyvin Wang will become head of all shipping and logistics activities conducted in the new Wilh. Wilhelmsen ASA. But what exactly was announced from the Board at the head office in Lysaker, Norway on 15 March this year? Here is a short recap.
Nils Petter Dyvik, chief financial officer in the WW group, has led the transformation team that invented the new structure and the establishment of a separately listed pure shipping and logistics company.
Jan Eyvin Wang is one of WW’s most experienced executive managers. Now he is facing his biggest challenge – as captain of all shipping and logistics operations in the Wilhelmsen group. Jan Eyvin Wang (b. 1956) holds a BA in Business Administration from the Herriot-Watt University in Scotland, in addition to the Advanced Management Programme from Harvard Business School in the United States. Mr. Wang has about 30 years of experience from various companies all over the world, the latest as chair of the board and president and CEO of EUKOR Car Carriers and as chair of the board of EUKOR Car Carriers Singapore and EUKOR Singapore Shipowning. Mr. Wang has amongst other, held the position as vice president of Barber Steamship Lines and president of NOSAC, in addition to vice president and senior vice president head of commercial division of Wilhelmsen Lines, senior vice president head of commercial division of Wallenius Wilhelmsen Logistics, president of Wallenius Wilhelmsen Lines Americas and managing director of United European Car Carrier (“UECC”).
WW ASA and WW Holding. In the new group
structure there will be one holding company – Wilh. Wilhelmsen Holding ASA. As the new parent company WW Holding ASA will continue to have full ownership of Wilhelmsen Maritime Services, with its business areas Wilhelmsen Ships Service, Wilhelmsen Ship Management, Wilhelmsen Ships Equipment and Wilhelmsen Marine Engineering. Wilh. Wilhelmsen Holding ASA will also be the majority shareholder of the new shipping and logistics company WW ASA (www. wilhelmsenasa.com). “It is deemed preferable to develop our business segments independently because the size and the capital intensity of the segments are different. The restructuring is conducted to facilitate a listing and separate access to the equity market for the shipping and logistics activities of the WW group,” says Nils Petter Dyvik. Raising new capital. In an IPO that was
closed in June, the WW group suceeded in raising USD 228 million in equity for the new Wilh. Wilhelmsen ASA. “With the restructuring we are creating the only listed pure play car/ro-ro and logistics company in the world. The recent market corrections have created opportunities for players with strong balance sheets and we need to ensure that we are prepared to act on opportunities that might arise. A separate listing strengthens the possibility for growing the shipping and logistics activities even further,” explains Thomas Wilhelmsen. The new shipping company will continue its ownership in Wallenius Wilhelmsen Logistics, EUKOR and American Roll-On Roll-Off Carrier with Swedish partner Wallenius Lines. 12 WWWORLD 1 2010
“Over the last 10 years, the group has Nils Petter Dyvik (b. 1953) holds a Master of grown considerably, and with this growth Business Administration from the University of also the diversity of operations. Being the Wisconsin. Mr. Dyvik has almost 30 years of experimarket leader within deep-sea transport ence, and has, amongst other positions, been first in the ro-ro segment commits us to a convice president in Nordea, CEO Norwegian America tinuous development in an industry that is Line, deputy CEO Wilhelmsen Lines, group deputy heavily capital-intensive. When we started CEO of Wilh. Wilhelmsen ASA and CEO of Wallenius the process, we soon realised the potential Wilhelmsen Logistics. Mr. Dyvik is also member of for a separate shipping company,” says Nils the board in several group companies and chair of Petter Dyvik to WW World. Investors like the board of Nordisk Skibsrederforening. transparency and that was sometimes harder to achieve in the old, more complex structure of the group. Another advantage with a separate stock-listed shipping and logistics company is the financial flexibility to act upon opportunities, whether organic growth or acquisitions. Positive catalyst. Mr. Dyvik explains that the global financial crisis was a positive cata-
lyst for change within the group. Options that were analysed included selling assets, stock listing Wilhelmsen Maritime Services – or establishing a separate shipping company. “The reaction from the stock market has been very positive. With this renewed structure we are sending a signal to the markets that we are in motion and intend to expand as a maritime industrial group,” adds Nils Petter Dyvik. He is particularly satisfied with the fact that shipping partner Wallenius Lines not only approved the new structure, but also participated as a financial guarantee in the establishment of the new Wilh. Wilhelmsen ASA.
The new Wilh. Wilhelmsen ASA will own 50% in Wallenius Wilhelmsen Logistics (WWL), 40 per cent of EUKOR Car Carriers, 50% of American Roll-On Roll-Off Carrier (ARC) and 15% of the Koran logistic company Glovis. “I am humbled by the fact that we have almost 150 years of maritime history in WW, and now it is my watch. But we have a good strategy for further growth, and I am looking forward to setting up the new company and really getting started together with a lot of very qualified colleagues,” says Jan Eyvin Wang. He and the others in the management team have a lot to do before the new Wilh. Wilhelmsen ASA is listed on The Oslo Stock Exchange, hopefully by the end of June 2010. Investor meetings are being organised around the globe to raise capital, and a lot of people are coming in to take up new positions. Differentiators. Replying to WW World’s question of what sets the Wilhelmsen
group apart from its shipping competitors, Mr. Wang takes a little pause. But it does not take long before we hear his answer: “The people, our values and the synergies we have within the group. The vessels, routes and network we can assemble from WWL, EUKOR and ARC are unique and can’t be copied by any competitor in the ro-ro segment. When you take this flexibility and add the competence of our colleagues, coupled with our corporate culture, we have a very good package to offer the global shipping market.” The new Wilh. Wilhelsen ASA will have its head office at Lysaker outside Oslo, and has a line up of approximately 46 people within wholly-owned companies, marine operations, logistics, finance and investor relations. Joint functions will be bought from Wilh. Wilhelmsen Holding.
“It is deemed preferable to develop our business segments independently because the size and the capital intensity of the segments are different" 13
Thomas Wilhelmsen Thomas Wilhelmsen (b. 1974) holds a Master of Arts in Business Organisation from the Herriot-Watt University in Scotland, in addition to a number of courses from other universities, including the Programme for Executive Development in IMD, Switzerland. Mr. Wilhelmsen has about 6 years experience from Wilh. Wilhelmsen ASA, where he has had a variety of positions including regional director Europe, Wilhelmsen Maritime Services and group vice president of shipping, as well as managing director of Tudor AS’ investments in Australia. Mr. Wilhelmsen has held the position as deputy CEO since 2009. He is also member of the board in several group companies, family owned companies and others like i.e. Eidsiva Rederi ASA.
The new group CEO At the age of 36, Thomas Wilhelmsen is ready for the top position as group chief executive officer in Wilh. Wilhelmsen Holding ASA from 1 October 2010. He anticipates a large potential for the group in the years to come. I’ve been preparing for this position throughout my career in the group, but I still feel humble when the time has come. However, a very comforting factor is the enormous competence I witness both in Oslo and when I travel to visit our people and operations abroad. This is not a one-man show,” says Thomas Wilhelmsen. Representing the fifth generation of ownership, the youngest Wilhelmsen already has a long shipping experience. But this year a lot of things are happening simultaneously. A brand new structure. “We still expe-
riencing the aftermath of the world’s financial crisis, which has seriously affected our shipping markets as well. At the same time we are setting up a completely new governing structure in the Wilh. Wilhelmsen group, with a holding company that has ownership in two separate entities. Wilhelmsen Maritime Services has in my opinion done a lot of right things and are still expanding. The new shipping and logistic company is still in the foundation process, and external funding is part of the plan. My role is to support both companies from the group’s perspective,” says Mr. Wilhelmsen. Thomas Wilhelmsen is confident that the organisation is on the right path in terms of financial flexibility, portfolio management and development of market segments. “We have grown considerably over the last decade, but are not going to stop here. It is my obligation, together with managers and employees, to be impatient and to look for future business opportunities. If you look back at our history, we have always worked to exploit upcoming markets and trends.” Business and values. Thomas Wilhelmsen
will replace Ingar Skaug, a man known for his commitment to values and people manage14 WWWORLD 1 2010
ment skills. Thomas Wilhelmsen is described as a more business oriented person, but he also believes strongly in the vision “Shaping the maritime industry” and WW’s values: Customer-centred, learning and innovation, empowerment, teaming and collaboration and stewardship. “The Wilhelmsen group is represented in over 70 nations, and people with very different backgrounds and cultures are working with us. We must have something that keeps this large organisation together, and that creates a common identity. The answer lies in our vision and our values. I believe they are deeply imbedded in our organisation, and they represent a powerful tool for us all. At the same time I
was avoided. We are still experiencing lower cargo volumes and high volatility, but I am confident that the markets will continue to grow. And with the new organisation we are prepared, because growth is necessary for us as shapers and market leaders. I am open to exploring new segments and possibilities.” Cross-over potential. Thomas Wilhelmsen wants the employees in the group to dare to show their talents and be pro-active. “I am constantly positively surprised by the knowledge and the motivation I meet in the group. When we also have a joint goal, the outcome is enormous. I still think we have a
"We have grown considerably over the last decade, but are not going to stop here. It is my obligation, together with managers and employees, to be impatient and to look for future business opportunities" realise that these immaterial values have to be nurtured constantly, and I will continue to do just that.” Out of the Black Box. When WW World
interviewed the relatively fresh group vice president for shipping in the fall of 2008, he described the collapse of the markets and the future as a “black box”. How does he describe the future in 2010? “What we experienced in 2008 was unique. Although we work in a cyclical industry, nobody knew how long and how deep the markets would depreciate. That said, the world economy leaped back rather quickly and doomsday
potential for more cross-over synergies, and will encourage employees to use the large internal labour market in the group to seek new positions and gain experience.” For the Wilhelmsen group there is no longer such a thing as a home market. With approximately 500 people working at the head office in Norway, and more than 16 000 working all over the globe, Wilhelmsen is truly an international company. “Norway is not the centre of the world, and it’s definitively not where most of our customers are. That is a challenge, but as long as we have the best global offering in our markets, we will prevail,” says the new group CEO. WWWORLD 1 2010 15
Wilhelm Wilhelmsen steps down as chair of the board As Wilhelm Wilhelmsen steps down as chair in WW ASA, deputy chair Diderik Schnitler is appointed the new chair. These are Wilhelmsen’s greetings to friends, colleagues and business associates.
Norway: “The time has come for me to step
down as chair for the WW group and make way for a new generation. My son Thomas Wilhelmsen has accepted the position of group CEO and will assume his post in the course of the second half of 2010. The Wilhelmsen family will retain its controlling interest in the WW group, continuing its foundation of combining private and public ownership. During my nearly 20 years as chair, annual turnover has grown by a factor of six, from USD 412 million in 1992 to USD 2 600 million in 2009. In the same span of time we have developed the group from being a small operator with 13 ro-ro vessels to becoming the largest ocean transporter of rolling cargo. With our partner Wallenius Lines we now operate 26% of the car carrying capacity in the world. When we joined forces in 1999, the result was a significant increase in fleet efficiency for us both and making it possible to meet increasing customer demands as a truly global car and ro-ro operator. Together we created Wallenius Wilhelmsen Logistics and American Roll-on Roll-off Carriers. In 2002 we joined forces with Hyundai Motor Company and Kia Motors Corporation and created EUKOR Car Carriers. Our automotive and high and heavy cargo customers expressed the desire for us to develop an integrated logistics service. We accepted this challenge and note with satisfaction that logistics is one of our most important competitive advantages today. It pays to listen to the customers. The WW board’s strategy to become a leader in maritime services has also born 16 WWWORLD 1 2010
Ready for new challenges in Korea Deputy group CEO Sjur Galtung (66) was surprised when he was asked to replace Jan Eyvin Wang as CEO of EUKOR. But the WW veteran with almost 40 years of shipping experience under his belt soon realized that this was a challenge he could not resist. Text and photo: Arild S. Johannessen
"I will continue on the board as an active member, but in a less formal position" fruit. Starting out with Barber and Barwil, Wilhelmsen Maritime Services was established in 2005. There were 100 offices around the world when I assumed the chair position, and today this business has grown to 400 offices in 70 countries, comprising an unparalleled maritime services network. There have been some major challenges along the way during my chair period. Two such challenges that got international media attention were the MV Tricolor and MV Tampa incidents. The Tricolor capsized in the English Channel while the Tampa rescued more than 400 persons shipwrecked off Australia. The way we handled those incidents will always be associated with our corporate values and the way we operate our business. The WW group’s impressive growth in all its aspects could not have been accomplished without experienced and dedicated employees, value adding partners, loyal customers and inspiring associates all over the world. I am grateful for the help you have given in moving the WW group along on its journey. I will continue on the board as an active member, but in a less formal position. I trust that you will support the new management teams in WW Holding and WW ASA in the same way you have supported me. I truly believe that the potential for further growth and prosperity for the WW group is virtually limitless!” Best regards, Wilhelm Wilhelmsen
“I have been in a retirement mode for more than a year, and have since I left the position as group CFO mostly been working as a member of several internal and joint venture boards with special projects and in particular our ownerships in Korea. But when the request came, I realised that I have both the health and the drive to take on such a role. It was also important for me to have the support of my family, and the knowledge that all owners of EUKOR saw me fit for this challenging position and agreed that I was the right person,” says Sjur Galtung. There is no doubt that the owners, WW, Wallenius and Hyundai/Kia, have hired a man with vast knowledge of the business he will be leading. A board member in EUKOR since 2002, and pivotal in the tough negotiations when Wallenius and Wilhelmsen acquired a joint 40/40 stake of the shares of the car carrier division in former Hyundai Merchant Marine, Mr. Galtung knows a lot about the Korean way of performing business and all the key players. “I think I have visited Seoul about 50 times over the last decade, and now I am really looking forward to moving to Seoul and getting my hands dirty. I have no intention of being a short-term replacement, and really look forward to being a part of an operative business after so many years of monitoring the progress of the company from a board position,” says Sjur Galtung.
SJUR GALTUNG Mr. Galtung was Deputy Group CEO in Wilh. Wilhelmsen ASA (WW). He has been a EUKOR Board member since the establishment of the company in December 2002. His career embraces wide management experience within the Wilhelmsen Group since 1971, including Group CFO in the period between 1992 and 2007. "People are proud to work in EUKOR, and they work extremely hard. Most people are very impressed by the results, the revenue and the efficiency that comes out of this company. All EUKOR vessels that leave Korea are fully loaded. So I'm confident that I will be working with an excellent organisation, and when it comes to day-to-day business I am certain that they can manage well without me. My role will rather be to focus on the relationship with our main customers and owners, financing and naturally long-term strategy. But I will, of course, also be keeping an eye on our operations, to see how we perform." Every CEO has his/her own style, and I am following as successor to two most competent shipping executives, namely Carl-Johan Hagman and Jan Eyvin Wang. I will certainly follow up the best parts of Scandinavian leadership, with emphasis on both operations and a common culture for all employees," says Mr. Galtung.
“I am really looking forward to this new assignment,” says Sjur Galtung, the new CEO of EUKOR. WWWORLD 1 2010 17
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 email@example.com
BE MY GUEST
A place to meet giants According to folklore the ruins left behind by a people who lived in Malta more than 5000 years ago were built by giants. You can still meet giants in the streets!
ANCIENT GIANTS. Football giants aside, what
Text and photos: Einar Chr. Erlingsen
rived in 1530 and ruled Malta until they were expelled by Napoleon in 1798. No one has left a more lasting legacy on Malta than they did, including the fortified capital Valetta, which remains just about the same today as when they left. Their footprints can be seen all over Malta: in towns, castles, churches and fortified towers. "There's a lot to see. The cathedral of St. John should definitely not be missed. It's a gem," says Edgar.
MALTA: "One great advantage to living in Malta is
that it's a small country and you know almost everyone. You might even run into our President in the streets," says Edgar Cachia, general manager for Wilhelmsen Ships Service (WSS) in Malta. Our interview is taking place on the terrace outside one of the hotels in Balzan, close to the WSS office. As if to prove Edgar's point, international football giant Zlatan Ibrahimovic steps out from the hotel lobby. Needless to say, our interview can only continue after a swift photo session. "Malta's main attractions are the sea and the sun, our history and the people, of course. You'll always get a friendly welcome. It's in our genes," Edgar says.
Malta is really famous for are its ancient giants, the mysterious people who built the megalithic temples, including Ggantija. It was built some 5 500 years ago, making it the oldest freestanding temple in the world, even older than the Egyptian pyramids. According to local folklore the temples were built by giants, using stone blocks of up to 50 tonnes. THE KNIGHTS OF ST. JOHN: The knights ar-
THE ENGLISH: The French were in Malta for
a short period of time only, after which the British took over and ruled until independence in 1964. Their legacy can also be seen everywhere, in buildings, buses, phone booths, mailboxes and institutions. They also left their language; English and Maltese are both official languages. SEA AND SUN: "The sea is all around us, clear,
clean and warm. It's ideal for water sports, fishing and swimming. A daytrip out on a charter boat is highly recommended, including a swim in the Blue Lagoon," says Edgar. He adds that although he is no fan of seafood himself, its quality is second to none. STAY A WHILE! Places recommended include
Edgar's hometown Zabbar on the south coast, the ancient capital Mdina, and of course Gozo. "The island is a Malta in miniature, where the pace is slower, pollution almost nonexistent and people even more friendly - if possible," says Edgar. "Although Malta is a small nation we have a lot to offer. If you come, be prepared to stay for a while. You won't regret it!"
old: Valletta harbour.
18 WWWORLD 1 2010
WELCOME: General manager Edgar Cachia offers a warm welcome to Malta. football gi an Ibrahimovic. t: Together with Zlatan
Edgar's Top Ten
Meet Rakesh Kumar, Wilhelmsen Ship Management’s Company Security Officer (CSO). Text: Arild S. Johannessen India: The CSO function is a bundle of com-
1. Valetta with its many historic buildings 2. Gozo - for total relaxation 3. Ggantija megalithic monument 4. Mdina - the "silent city" 5. Local food and wine (rabbit is a favouriteamong the Maltese) 6. A boat trip, including the Blue Lagoon in Comino 7. A fiesta (they are celebrated in different places throughout the summer) 8. The Mosta church - with the third largest dome in Europe 9. A bus ride in one of Malta's ancient British buses. It’s easy to get in touch with the locals 10. Local soft drink Kinnie - very refreshing on a hot day ➜➜www.visitmalta.com
RICH IN HISTORY: The Knights of St. John left a lasting mark on Malta, as in their richly decorated cathedral in Valetta.
plexities, none of which can be ignored. These can be divided into two groups, one being compliance issues and the other operational issues. Fulfilling compliance issues requires ensuring all required ship’s and personnel certifications and documents are onboard and valid and checking monitoring instruments (audits - inspections) are adequate and effected timely. Operational issues have a much wider and demanding scope, e.g. it begins with maintaining 24/7 contactability, as any of our WSM-WLCC offices and any of our 150(+) ships located worldwide can contact the CSO on 24/7 basis. Other salient duties under this section are providing security information and related developments to fleet and WSMWLCC offices, routing evaluation and guidance, responding to day-to-day operational queries of our diversified fleet, offices and other stakeholders, providing guidance on security preparedness, monitoring ships passages and related activities through risk areas, Liaising with various national naval forces for protection during Gulf of Aden transit and updating ships with applickable piracy alert and warning issued by MSCHOA & IMB with minimum delay. To summarise, all such duties that are required for secured and safe sailings of all our ships. “Who do you interact with on board the vessels and ashore?” “Onboard ships CSO’s interaction is with Master and SSO while ashore it is with fleet managers, HSEQ managers and vessel managers. Outside CSO has to interact with RSO (Classification Societies), Flag Administrations, Port Facility Security Officers, International Maritime Security Organisations e.g. MSCHOA, UKMTO, IMB & MARLO, national navies operating in piracy areas and other stakeholders e.g. com-
Rakesh Kumar Age: 51 years Position: Company Security Officer, W ilhelmsen Ship Management Location: Mumbai, India Background: 32 years association with sea & shipping, of these 25 years sailing and 7 years ashore, sailing experience includes seven years as Master. With the WW group since 1989, Company Security Officer of WSM & WLCC ships since 2003.
mercial operators.” “What kind of security issue has taken most of your time in the recent months?” “Piracy Issues - Gulf of Aden and Indian Ocean and West Africa. “ “How do you monitor risk and risk areas?” “Monitoring security risk involves ships characteristics and capabilities, study of reported incidents, feedback from ships, papers, studies and published by Flag Administrations, industry organisations and associations, underwriters, naval forces operating in risk areas and a bit of own professional judgement added to these. “ “What do you like to do when not at work?” “It is my passion to drive to the seafront over the weekends, specially with my son when he visits us on his school holidays.” WWWORLD 1 2010 19
people&places Experienced seafarers discussed leadership awareness issues At sea they are experienced leaders as masters, chief officers or chief engineers. But for many of them, the three days Leadership Awareness Programme, was their first opportunity to discuss leadership and leadership issues with colleagues. Text: Arild S Johannessen NORWAY: For the 11 Norwegian Officers from Wilhelmsen Ship Management (WSM), the gathering at WW's head office at Lysaker was filled with discussions, team practices and issues such as multicultural communication and leadership theory. “This type is a supplement to our more practical courses like Bridge Management and other skills related programmes. Our ambition is to offer continuous leadership training to our officers at sea. Good leadership skills, and a personal insight of how you communicate and relate to subordinates and peers, are vital for safe and efficient handling of advanced vessels and crew,” says Dag Silkoset, competence and development manager in WSM. The course was conducted in cooperation with DnV, with consultants Cecilie Hurlen and Odd Arne Haueng as facilitators. “Leadership is in fact part of safety at sea. Awareness of how you are perceived as a leader, and your ability to transfer knowledge and attitudes to junior officers are vital parts of organisational development,” say the two experienced consultants. Chief engineer Ivar Tømmerås and chief officer Inga Renate Karlsen are experienced mariners, but with little training in leadership awareness. “Performing the LIFO personal awareness method, gave us a new insight into how we are perceived as
INDIA: The award was presented by the Honourable Union Minister of Shipping Mr. G.K. Vasan. Ms Dewangan is the first female to be inducted in Wilhelmsen Ship Management India as a seafarer. She joined as a junior engineer on the WSM USA managed vessel W. H. Blount in 2007, and after passing her examination she joined the Sklenar as
20 WWWORLD 1 2010
Barklav sponsored children’s hospital The manning agency Barklav, a 50/50 joint venture between Wilhelmsen Ship Management and Klaveness, celebrated its 10th Anniversary this spring by sponsoring the children’s ward at a hospital in Constanta.
JOINED FORCES: The Leadership Awareness Programme was planned and executed by Wilhelmsen Ship Management and DnV in cooperation. In front: manning superintendent Marianne Fosaas and Dag Silkoset, competence and development manager from WSM. In the back: DnV consultants Odd Arne Haueng and Cecilie Hurlen. leaders. It also showed us how we can be mentors to our crew at sea. This was a very useful seminar. And for many of us, actually the first time in a long career where we discussed leadership as such,” say the two officers.
Award for female WSM officer 4th engineer Poonam Dewangan received the prestigious "Youngest officer” (female) award at the celebrations of this year's National Maritime Day.
Team building at
4th engineer in June 2009. "I would like to thank WSM for giving me the opportunity to start my sea career," says Ms Dewangan. "A special thanks to my superiors for the guidance and encouragement they have rendered me on board the vessels. I would like to continue to sail in WSM and attain my dream of sailing as chief engineer some day." India's National Maritime Day is celebrated each year to commemorate the first sailing of an Indian Merchant Navy vessel, the S.S. Loyality in 1919. We congratulate Ms Dewangan on the award.
Rumania: Not only did the hospital receive a gift of NOK 100 000 (Euro 12 000). The employees also took their turn in refurbishment of the premises. The Constanta County Emergency Hospital is the only specialist hospital for children in the Dobrogea region. The hospital is old and was in great need of furniture for the children’s wards. "The board of Barklav therefore decided to renovate five wards and supply new mattresses, sofas and closets. The gift was very much appreciated, and the employees in Barklav all participated with enthusiasm," says Tushar Mohile, board member in Barklav and vice president manning in Wilhelmsen Ship Management. Barklav was founded on 17th May 2000 as a j/v between Torvald Klaveness and Barber Ship Management. More than 200 officers and 300 ratings are now in the Barklav manning pool, headed by general manager Laurentiu Lazar. The 10th anniversary was celebrated with invited guests, board members and representatives from The Norwegian Embassy present. For more information about Barklav Manning Services: www.barklav.ro
AWARDED: 4th engineer Poonam Dewangan with the "Youngest Officer (female) Award for MEO Class IV Certificate of Competency for 2009".
Why not learn from the best? That is why Wilhelmsen Ship Management chose Liverpool FC's Anfield Road stadium for a team building session.
United Kingdom: The crew onboard C/S Nexans Skagerrak (Cable Ship) are faced by daily challenges: keeping the vessel in exactly the right position at all times to perform their complex cable laying operation, frequently in harsh weather conditions. This naturally depends on each member of the team knowing his job and how to interact with each other, with no room for mistakes. Which is one of the reasons why the team joined at Anfield Road stadium for a WSM conference earlier this year. Fleet Manager Helge Stian Ødegård and his team: Thomas Michael Stott (HSEQ), Geir Rognlien Elgvin and Anne Irene Torgersen Westerberg (both from crewing) guided the crew through five sessions, one lunch and one dinner at the historic football grounds. Former Liverpool player (1992-2000) Norwegian Stig Inge Bjørnebye held an enthusiastic session on teamwork and individual motivation. Nexans Norway also briefed all crew on the prospects for the cable layer and the operations which involve cable works in The North Sea, Japan, The Balearic islands, Sweden and Finland.
NEXANS TEAM: Joining forces at Liverpool FC's Anfield Road changing room.
VIP customer days at EXPO 2010 From 4-6 May, the Wilh. Wilhelmsen group hosted three customer days at the Norwegian EXPO pavilion. Customers of Wilhelmsen Ships Service, Wilhelmsen Ships Equipment and Wilhelmsen Marine Engineering in China were invited to a full day at the Shanghai EXPO. China: Each day started with a guided
tour of the Norwegian pavilion followed by a presentation of the environmental solutions under the ACT endorsement, lunch and guided tours in a selection of other pavilions. In the
evening the guests gathered for a sit-down dinner of Norwegian seafood and entertainment by Norwegian folk musicians. The programme each day ended with a lucky draw. "Our guests were overwhelmed. Through these days in the Norwegian Pavilion, our customers have gained lots of new knowledge about both Norway and the Wilh. Wilhelmsen group. This is a stepping-stone for us, and these days will produce results," says Neal de Roche, area director, North East Asia, Wilhelmsen Ships Service.
Greeting the customers: Joanne, Lan, Mier Shi and Gao XiuJuan ready to welcome the customers to the business centre of the Norwegian pavilion.
WWWORLD 1 2010 21
A man true to his values When WW group CEO Ingar Skaug retires on 1 October this year, he will be leaving a company that has changed tremendously since he joined it twenty years ago. One thing has not changed, however: His commitment to people and to company values. Text: Einar Chr. Erlingsen Photos: Kaia Means
22 WWWORLD 1 2010
WWWORLD 1 2010 23
Ww exclusive SLO, NORWAY: This reporter
had the honour of conducting the very first interview with Ingar Skaug, almost to the day 20 years ago. He was the newly appointed head of what was then Wilhelmsen Lines (WL); comprising mainly nine ro-ro vessels in the Around the World service. WL was in a deep crisis after the terrible event on 8 September 1989, when 50 of its management employees lost their lives in a plane crash. The remaining staff had through tremendous effort and a strong sense of solidarity managed to keep the company afloat until Mr. Skaug arrived as their new CEO in May 1990, having been headhunted from his position as head of Norway for Scandinavian Airlines System (SAS). Re-reading our initial interview from 1990 has been almost a revelation. Under the title "Believing in people" Mr. Skaug was quoted on his strong belief in human resources, and stated that his main focus as a leader was to create room for his associates to use their creativity and skills in the best possible way. He went on to explain about his commitment to work delegation, clearly defined targets and company values. Areas of responsibil-
MILESTONES ➜➜1995: Wilhelmsen Lines becomes fully owned by
WW ASA (previously 55% ownership)
➜➜1995: Norwegian America Lines acquired ➜➜1995: ARC 50% owned through acquisition of NAL ➜➜1999: Wallenius Wilhelmsen Lines (now: Logistics)
➜➜2002: EUKOR Car Carriers established (40% WW
➜➜2004: 25% of Korean logistics company Glovis
➜➜2005: Wilhelmsen Maritime Services etablished ➜➜2005: Unitor ASA acquired ➜➜2008: Callenberg Group acquired
ity should be broken down to each individual; employees should have the freedom to take the initiative (and on occasion even to make mistakes). And, last but not least: strong customer focus was all-important. Does this sound familiar? It should, in today's WW. For Mr. Skaug's statement proved to be more than mere words, they were soon to be followed by action. Within organisational development tools like climate assessment,
What do you regard as Ingar Skaug's main contribution to WW's internal culture?
1: 2: 3:
Is there a particular episode from your time of working with him that you would like to mention?
What do you see as the most important strategic decision taken during his time with WW?
24 WWWORLD 1 2010
employees can say the same, because this is important; having fun is what creates energy followed by good results. Which we have delivered. I'm especially proud of the fact that we have been able to deliver acceptable results even during the present recession, and still remain true to our company values. We have built those values based on what our customers expected from us. Our values help us to navigate in a constantly changing global market, and to grow into new areas. So I believe it is very important to remain true to these values."
coaching, customer surveys, training and education are familiar to WW employees all over the world, after they were first introduced in that interview of 20 years ago. A nickname that didn't stick. Ingar
Skaug would soon be called "the pilot"; a nickname based both on his background from the airlines industry and on what many sceptics saw as "high-flying" words. But the name didn't stick and has long since been forgotten. It soon became apparent that the new boss really believed in his people-oriented vision and acted accordingly. HR/OD processes, which initially were considered by many to take focus from their daily tasks, have long been an integrated part of working within the WW organisation. This is by no means the only fundamental change that has taken place since Mr. Skaug's arrival. He is the first to admit that the credit is not his alone: “From my very first day in office I have been given the trust and freedom to act and to influence development. For this I'm extremely grateful. These have been fantastic years. I've had the privilege of working with a team of very competent and committed employees, second to none in our industry. I have also enjoyed my work. I hope all our
A GOOD LAUGH: Ingar Skaug is sharing a joke with Kai Kraass, chief operating officer ocean services and supply chain management, Wallenius Wilhelmsen Logistics.
From my very first day in office I have been given the trust and freedom to act and to influence development. For this I'm extremely grateful. These have been fantastic years"
Looking back. Company growth during Ingar Skaug's time at the helm has been tremendous. Just to name a few events: Wilhelmsen Lines became a fully owned WW company in 1995, and opened up for the acquisition of the Norwegian America Line (including a 50% ownership in ARC) later the same year. This in turn laid the foundations for the partnership with former competitors Wallenius in Wallenius Wilhelmsen Lines (1999). The mid-1990s were busy years, which also saw the humble beginnings of another important business area in today's WW: logistics. "I remember well where the idea first came up," says Mr. Skaug. "In 1994 I had a meeting
Christopher J. Connor
➜➜President, Region Americas, Wallenius Wilhelmsen Logistics
➜➜Non Executive Director of the Wilhelmsen Group Companies in Australia
➜➜Chief Executive Officer, Wallenius Wilhelmsen Logistics
1: Ingar understood that WWL’s success would be built upon a common culture and a shared set of core values. The market was weak right after the merger in 1999, and some of us, myself included, didn’t initially buy into the internal focus, and argued for prioritizing external / market issues. Ingar pushed us to get the culture aligned first, and stressed that strong results would come as a result. He was right!
1: The acceptance of the notion, that people are our most important asset. To enshrine this within the culture, he created an organization structure based on values, which has become the key to creativity and innovation. This in turn has set the group aside from the competition and globally made it one, where people regard WW and its associated entities, as the employer with whom they wish to work.
2: The guy has amazing stamina. A full day visiting customers or offices, entertaining clients in the evening, and back up first thing in the morning eager to do it all over again. I’m 15 years younger, and I was no match for his pace. Inspiring!
2: Too numerous to mention! Ingar’s visits to Australia & New Zealand were a highlight with employees and customers and the event, which said it all, was the naming ceremony of the Toledo, which he hosted in Sydney. Toledo was Norwegian owned, built by Koreans, operated under the British flag by WWL with a Filippino crew, carrying cargo to and from four continents. Guests at the Naming party, representing our major global customers, together with our employees all had great fun. A true example of the global organisation that had developed during Ingar’s leadership.
3: Being a driving force behind the creation of WWL, has to be the most important strategic accomplishment in Ingar’s impressive career. Looking back over the past 11 years, in particularly 2009, I think it’s fair to say that the world would likely look very different for both legacy companies, had the merger never occurred.
3: Ingar joined Wilhelmsen Lines at a time when the word logistics didn’t appear in our
vocabulary. He had the vision to see the opportunities and upon his retirement, logistics is enshrined within the Wilhelmsen Group business model and successfully differentiates us from our major competitors
1: I’ve worked with Ingar since 1990. Some of what I have appreciated most is his focus on and belief in people, his trust in everyone to do a good job. Also, he has consistent focus on the values. Not least I have appreciated his ability to make us believe that the impossible is possible – it’s just a matter of time. 2: There are so many good stories. It was fun for me to introduce him to our business in Asia. I remember some of our travels in Asian countries, where he realized the position of WW. He once said that in 10 years Wilhelmsen would be the biggest company within ro-ro and car carriers. At the time I think we had about seven ships, so we thought he was a bit crazy. It took 14 years, not 10. So I will always remember that one. Ingar is a fun guy to work with. I’ve had the opportunity to spend a lot of time with him. I could write a book of stories. But Ingar, rest assured, I will not write it. 3: Definitely the focus on the quality and on the logistics. Making the cooperation with Wallenius through WWL a success. Daring to go for Eukor. The Glovis investment. With Ingar you can’t pick one. There are several. To sum them up: his enthusiasm for growth and his belief in a positive future.
WWWORLD 1 2010 25
BUSY SCHEDULE: With a boss who has been frequently away on business trips, it has been trusted personal assistant Kristin Svennungsen’s task to keep track of her boss’ hectic program.
To leave an improved environmental footprint will be increasingly more important in customer relations"
with Bernt Schlickum in Australia. He was then head of Mercedes' operations in South East Asia and Oceania and voiced a demand for door-to-door logistics for the car industry. So in Wilhelmsen Lines we decided to start meeting this demand. The first contract was signed, not with Mercedes, but with BMW, and major ro-ro customers like John Deere and Caterpillar followed soon after," says Mr. Skaug. Today WWL's logistics operations reach to most corners of the world, with supply chain management, terminals, vehicle processing centres, and inland distribution. "The value of logistics has really been tested during the last couple of years: Where ocean transportation is linked to logistics services we have nearly been able to maintain our rates in markets with over capacity, despite fierce competition. To maintain and expand our logistics infrastructure and grow into emerging markets will be a key to continued success," says Mr. Skaug. His period as group CEO in WW ASA (from 2003) also brought fundamental organisational changes. The most comprehensive change was the creation of Wilhelmsen Maritime Services (WSM) in 2005. By combining the existing infrastructure mainly in Barwil (ships' services) and Barber International (ship management), WMS entered into a new league, soon to live
up to its new slogan of "being a shaper of the maritime industry." The acquisition of Unitor and Callenberg Group a bit later served to bolster this development, adding greatly to the range of products and services offered through what has become a truly global network. The future. Asked what in his view will se-
cure continued success for WW, Ingar Skaug has not one, but two answers: "Firstly, we must never stop asking ourselves: What will the future bring? Study in particular how the manufacturers will be selling their products in the future. Changes might come fast, and we must be ready for the challenges they will bring. Secondly, we have established a leading role in environmental issues. To leave an improved environmental footprint will be increasingly more important in customer relations, and will also open up for new business opportunities." Mr. Skaug is confident of a prosperous near future for the company he is soon to leave: "I believe that the present growth will continue and even increase. We will see growth mainly in new markets at this stage, somewhat later in mature markets like the US and Europe. Their infrastructure is old and worn, so an upgrade will greatly stimulate the demand for transportation of all types
➜➜Vice President Region Africa, Middle East & Black Sea, Wilhelmsen Ships Service
➜➜Corporate account manager, Wallenius Wilhelmsen Logistics
➜➜President and COO, ASL group
1: Ever since he started in Wilhelmsen Ingar has been focusing on organizational development and building a company culture that is founded on participation from each individual, creating a strong sense of belonging and enhancing performance. Core values were followed by learning academies that did not only improve the general knowledge but also bounded the participants. Ingar’s consistent focus on human resources has gradually helped develop a culture where each employee is very proud of working in the WW group. 2: I had a tour with Ingar around the Black Sea in 2005 where we visited our offices in Bulgaria, Romania and Ukraine. The excitement he was met with from our local employees can hardly be described. He has a great ability to communicate with people from different cultures and the time he took to meet, talk and inspire everybody is still remembered. 3: I have to choose two achievements. One is the merger of Barwil and Barber into
Wilhelmsen Maritime Services. The other is the establishment of regions, first in WWL, then in WMS. Together these initiatives led to an immensely improved customer focus and internal cooperation. In WMS it started a fantastic development, where the company today is the world's leading provider of maritime services. 26 WWWORLD 1 2010
1: To me Ingar is one of the very few top leaders who managed to integrate two rather complex companies by introducing a value system and who parallel to the immense internal focus did not lose focus on the business as such, which is extremely crucial in a merger phase. 2: One evening in Munich where Ingar and myself were
out with some senior managers of one of our customers. The discussions centered around the topic of setting up a “shuttle” service on the North Atlantic basically for that customer. Creativity increased as the hours went by, until Ingar picked up a table napkin and designed a possible solution. Two days later one of the BMW managers called me and said: “Axel, it was one hell of an evening and we all feel very comfortable with what we have heard and believe that we are in very good hands with WWL, but can you please tell me what it was all about as we do not really remember it all…” 3: I think that moving away from containers was important, and even more important
setting the strategy towards more integrated services, as this brought us closer to our customers and also forced us to gain knowledge as an organisation..
SOCIAL AND OUTGOING: Ingar Skaug is known for his easygoing personality. Her he greats newcomer Kim André Vannebo (bunker broker/Wilhelmsen Premier Marine Fuels) welcome to the WW Group. Seated: Finance manager Kjersti L. Holm, WW ASA. of rolling stock," he says. Asked about his own near future, he has some answers ready: "I have probably spent less time with my family than I should have. I’m a grandfather now and I look forward to spending more time with my wife, children and grandchildren. Add to this my hobbies:
1: Every once in a while an organization has the good fortune to be matched with a leader ideal for the times. Ingar Skaug has been such a leader for the Wilhelmsen organization, with his boundless energy, passion and relentless commitment to the success of the group companies. 2: I joined the WWL organization early in 2000, less than a year after Wallenius and Wilhelmsen combined deep sea operations. Coming in from the outside, the disparity of pocket cultures in the new WWL organization was clearly evident. During those early days, Ingar saw clearly that the new enterprise needed to create its own culture. He served as the tireless orchestra leader of that effort, and in the process, he guided the organization towards a shared understanding
hunting, fishing, golf and skiing, plus being a member of eight company boards. So I foresee a different, but still quite an active future for myself." Few who have worked with Ingar Skaug over the years will be in any doubt that he will live up to his words.
Changes might come fast, and we must be ready for the challenges they will bring”
3: Most impressive for me was Ingar’s drive as CEO of WWL to instill and anchor
a unique and sustainable culture in the organization. This, along with his focus to connect that culture with key customers around the world during an important period of industry growth and innovation, will be his lasting legacy.
WWWORLD 1 2010 27
Special report: china
The new face of
China In 2010, China is the engine of the world economy. China is also the second largest shipbuilder in the world with approximately 190 yards, and holds a respectable position as the 4th largest shipping nation. 90% of all export outbound and inbound to China is transported by sea. When we also know that China has the largest new car sales market in the world, it comes as no surprise that the Wilh. Wilhelmsen group has a strong presence to meet the new face of China. Meet some of the men and women working in the world’s largest market in this Special Report. In China: Arild S. Johannessen (text and photo) Oscar Malpica (photo) Bjørg Ekornrud (text and photo)
Special report: china
WSE in brief Wilhelmsen Ships Equipment offers fully engineered safety, environmental and insulation solutions for the newbuilds and retrofits in the maritime and offshore markets. Main capabilities are design, production, installation (on agreement) and commissioning. Value added services for newbuilds, retrofits and offshore installations include engineering and documentation, contract management and support by distribution centres in Shanghai, Szczecin and Singapore (offshore). Annually, Wilhelmsen Ships Equipment delivers over 1500 systems from sales locations around the world. WSE solutions and equipment are used by roughly 25% of the world's merchant fleet.
Big in China Wilhelmsen Ships Equipment (WSE) is big in China, but wants to become even larger. Production of new environmental products is part of the formula. Text: Arild S. Johannessen Photo: Oscar Malpica or the worlds leading provider of maritime fire suppression systems, nitrogen systems and fire and smoke detection systems, Shanghai is a hub, serving the large shipyards in the region. In Chinas largest city and commercial centre, Wilhelmsen Ships Equipment is present with a wide range of operations: The production facility has 11 000 square metres available for the manufacture of all sorts of systems, the main distribution centre (CCA) for Asia is located in Shanghai, and the subsidiary TI Marine Contracting offers insulation solutions for newbuilds and retrofits in especially Korea, China and Japan. Approximately 200 employees work for Wilhelmsen Ships Equipment in China; of these 100 are production workers on hire. “In terms of engineering capacity and supply side management, we cover all of Asia. Our revenue in China has increased from 6,1 million US
30 WWWORLD 1 2010
A worker adding the final touch at home stations for the Unitor Dry Chemical Powder System.
All products are closely inspected before delivery.
ON SITE: WILHELMSEN SHIPS EQUIPMENT
dollars in 1997 to nearly 30 million this year. We are expecting a further increase when our new range of environmental products is launched in the market in the second half of 2010,” says Yilie Shen, vice president finance in WSE.
highest Unitor quality requirements.” The production site was opened just six months ago, in January 2010. WPs prime customers are the large ship yards in China, Korea and Japan, as well as European shipyards
Environmental solutions. The spearhead of the environmental range will be The Unitor Ballast Water Treatment System (UBWTS), which will be manufactured in Shanghai. According to the intention of the IMO Ballast Water Management Convention, new ships with a ballast capacity of less than 5000 tonnes must have an IMO approved ballast treatment system from 2010. By 2016 all ships must have such a system. Global head of HR in WSE, Jennifer Xu, adds: “Since they are all located in Shanghai, the business areas in Wilhelmsen Maritime Services can join forces and approach the vast Asian market together. This is a win-win situation for both us and our customers”.
Consolidation Centre Asia (CCA). CCA is
Wilhelmsen Production. In Nanhui, some kilometres from the regional head office, we meet Allen Jiang, plant director of the new Wilhelmsen Production facility: “We are ready to expand, and will definitively be hiring more people in 2010. In total we are producing for nine different product categories. We are equipped with all the right tools for welding and fabrication, CNC machining, surface treatment and electrical assembly. I am proud to say that we have an experienced and multi-skilled staffs that manufacture all our products to the
the main distribution central for WSE in Asia, established in 2003. The bonded warehouse is located in Wai Gao Qiao Free Trade Zone in Shanghai, and has more than 5000 kinds of spare parts in stock. “We act both as a purchaser, forwarder and warehouse in the logistic supply chain in WSE. This involves order planning, customs clearance and warehouse management,” explains operations manager Jack Hu. TI Marine Contracting. TI Marine Contracting is a subsidiary of Wilhelmsen Ships Equipment, with head office in Oslo and affiliate offices in Korea, China, UK, Singapore and Japan. A world leader in low temperature insulation technology, the company delivers turn-key tank and pipe insulation solutions to world-wide marine and land-based projects. Plant manager Mike Xie in TI China explains that the Chinese branch has introduced a new spray on insulation. The product has been a large success at ship yards in Korea, and the next step is the vast Chinese market. “We are also the only company in the world to offer cryogenic tank insulation panels for LNG vessels,” says Mr. Xie. When the plant is producing at full capacity, up to 80 workers are employed for TI China.
The main warehouse at the Wilhelmsen Production facility.
Surface treatment is required for the production of galvanized pipes.
Operations manager Jack Hu in front of his colleagues at the Consolidation Centre Asia.
Plant director Allen Jiang with one of the first produced Unitor Ballast Water Treatment Systems, the spearhead in the new range of environmental products from WSE. WWWORLD 1 2010 31
Special report: china
WSS in China Unitor was established in China in 1995, but due to the Asian financial crisis, in 1999 restructured its operations to be managed out of Hong Kong. Wilhelmsen Ships Service (WSS) re-entered China in 2003. WSS offers all four business streams: Marine Products, Technical Services, Maritime Logistics and Ships Agency. WSS North East Asia has one the largest sales force in the region (approximately 30), and have close cooperation with Wilhelmsen Ships Equipment, especially in the Chinese market. “From our base in Shanghai, we can offer a vast range of products to ship yards in the whole of Asia,” says Yilie Shen, vice president finance in WSE.
Ti Marine: Plant Manager Mike Xie in TI China in front of a model, demonstrating the new membranes spray insulation.
Neal De Roche:
An entrepreneur in North East Asia Neal De Roche (36) is area director for Wilhelmsen Ships Service (WSS) in North East Asia. The South African believes in a straight-forward strategy, visible objectives and having fun at work. Together with his 285 colleagues in China, Taiwan, Korea, Hong Kong and Japan he is about to reach his goals. WSE has the most advanced CNC equipment for the production of e.g CO2 manifolds. 32 WWWORLD 1 2010
Text: Arild S. Johannessen Photo: Oscar Malpica
hina: Neal De Roche describes
himself as a man with a humble background. He is the only man in his family who is not a fisherman in the waters outside Cape Town. But after six years at sea, he was offered a job in Wilhelmsen Ships Service in 1997. And since then his career has peaked. His last position was as area director for Africa, working out of the regional head office in Dubai. He started in his current position in 2008, working out of Shanghai and reporting to vice president Bjørn Tønsberg in Singapore. Large operation in China. As always
with Wilhelmsen Ships Service, the coverage is huge. In China WSS has offices in Shanghai, Beijing, Dalian, Qingdao, and Guangzhou. The business streams Ships Agency and Maritime Logistics handled more than 1000 port calls in China. In addition, Marine Products and Technical Services delivered more than 5900 orders to over 3000 vessels. “But we are still in a build-up phase,
and we will be opening six to eight new Wilhelmsen offices in the next two years,” says Neal. In cooperation with COSCO (China Ocean Shipping Company), Wilhelmsen Ships Service has coverage in more than 60 ports throughout the country. “It took some time to build the important relationships after our re-entry in 2003, but today we are already the market leader within Maritime Services,” says Neal. A Motivated organisation. The area
director has an effective recipe for his approach to the market: Developing competence with the organization, creating passion and establishing good processes. This needs to be supported and driven by a highly motivated and result orientated management team and a dedicated sales force, underpinned by a top notch Customer Services team. “I am pleased to say that I am proud of the whole organisation. We are an exceptionally motivated bunch, focused on having fun at work and combining it with an
aggressive approach to the market. In the end, it all provides good results,” says Mr. Deroche. He is also pleased to support the new concepts in Wilhelmsen Ships Service, Ships Spares Logistics and Ships Agency ReDefined. And the timing for increased account sales is perfect, an increasing number of Chinese companies have started trading globally. “And with our global network capabilities, the value we add to customers with our diverse range of Products and Services, and environmental focus, we have a good foot in the door,” says Neal enthusiastically. In 2009, ships agency in China alone delivered a result 80% better that in 2008. So how does an entrepreneur like Mr. De Roche find China, both as a work place and a place to live with a young family? “I will describe the energy as absolutely electric. I have the privilege to work in five different countries, and my learning curve has been rather steep. But to me it’s the adventure of a lifetime, and an extremely rewarding place to be,” says area director Neal De Roche. WWWORLD 1 2010 33
Special report: china Wilhelmsen Marine Engineering:
Moving closer to the major customers Almost nine out of 10 new vessels in the world’s merchant fleet, and 70% of offshore vessels and installations, are built in Korea, Japan or China. For a maritime engineering company, the logical step was to build up an operation where most of it's key customers are located. Text: Arild S. Johannessen Photo: Oscar Malpica
AHEAD OF TARGET: “China was already in April 2010 the world’s largest shipbuilder, five year ahead of target in 2015. Of course we have to be present here,” says Ivan Larsen, vice president region Asia for Wilhelmsen Marine Engineering.
OFFSHORE: The semisubmersible rig Hai Yang Shi You 981, delivered by Shanghai Waigaoqiao Shipyard, is one of the installations that are equipped with HVAC-solutions from Wilhelmsen Marine Engineering. Offshore is a rapidly expanding market in Asia.
ilhelmsen Marine Engineering (WME) was established in 2008, when Wilhelmsen Maritime Services acquired Callenberg group, a Swedish-owned maritime engineering group working mostly in Scandinavia and USA. Today WME is providing maritime electric and automation systems, and heating, ventilation and air-conditioning (HVAC) systems for new vessels as well as maintenance and modification for vessels in operation and conversions. Ivan Larsen is the designated man to lead the important work of building up WME in Asia. A former managing director for Callenberg in
Denmark, he now works out of Singapore as area director. “We set up our first representation office of Callenberg in Shanghai in 2005. Assembly of switchboards started in 2007, and the production of the electrical switchboards used on board was re-located to the same city in 2009. Today we share joint premises with Wilhelmsen Ships Equipment in China, and we are increasing both in volumes and the number of employees,” says Ivan Larsen.
34 WWWORLD 1 2010
Large footprint. Establishing a footprint
in a region as large as Asia in a period when
SWITCHBOARD: WME employees working on a vessel's main switchboard in the workshop in Shanghai.
the financial crisis hit the shipyard industry pretty hard, has not been an easy task. But Mr. Larsen is content with the fact that Wilhelmsen Marine Engineering now are represented in China, Korea, and Singapore and from Singapore also covers Vietnam, Malaysia, Indonesia and India in corporation within Wilhelmsen Maritime Services. “A result of this build-up is that we can import and export products, services and competence between these countries. That is serving our customers needs in a better way and increasing synergy internally for us in Wilhelmsen,” says Ivan Larsen.
Synergies. When building up new business, it’s good to have some help from the family. And within Wilhelmsen Maritime Services there is good potential for synergies between the business areas. Ivan Larsen says the cooperation with especially Wilhelmsen Ships Equipment and Wilhelmsen Ships Service is of big importance: “Meeting the customers and the markets together and sharing information and knowledge are truly great assets for us in Wilhelmsen Marine Engineering”. Furthermore the services of Wilhelmsen Marine Engineering and the market ap-
proach of Wilhelmsen Ship Management having the interesting docking concept offers also interesting opportunities to explore on the road ahead. A lot of tea. Mr. Larsen has been travel-
ling to Asia on a regular basis since 1998. As related by others WW World has met, personal relationships are of utmost importance when doing business in the region. “The first step is to be present and meet the right people the right way. Then you need to develop relations over a series of meetings and dinners. I usually say that we
drink a lot of tea together in China,” says Ivan Larsen. But he is also confident that WME has a lot to offer ship yards in the region. “Asia has come a long way in terms of industrialising the shipbuilding concept. But WME are experts within design, project management and knowledge about all the regulations and specifications that belong to our segments, especially in the important commissioning phase. It is as a system supplier and system integrator within maritime engineering that we can truly excel in the Asian markets,” says Ivan WWWORLD 1 2010 35
Special report: china
WWL in China Ocean services: China Express – shuttle
service three times a month from Japan to China, direct service to Europe, North Africa and South America. Technical services: Vehicle Processing Centres (VPC) in Tianjin and Shanghai. Inland distribution: Transport of vehicles from port or VPCs to dealers or final destination. Offices and ports: Beijing, Dalian, Shanghai, Guangzhou, Tianjin and Hong Kong. Employees: Approximately 80. Other: WWL is among the top three ro-ro service providers in China, and together with EUKOR the largest importer and exporter of cars to the domestic market.
Wallenius Wilhelmsen Logistics:
The next large market Wilhelmsen Lines started regular service to China already in the 1920’s. Today Wallenius Wilhelmsen Logistics (WWL) and EUKOR are keeping up the tradition, with a rapidly expanding business. Text: Arild S. Johannessen Photos: Oscar Malpica WL China's managing director,
Trond Tønjum, predicts the country will be the next big market for the company. In 2009, China had the highest auto sales in the world. A total of 13.6 million vehicles were sold, of these were 500 000 imported premium cars. An equal number of cars were exported from the country. During the 1980s and 1990s, Western vehicle manufacturers rushed to set up joint ventures with local Chinese companies, mostly for the domestic market. However, according to Trond Tønjum, trucks and buses are showing large export growth and will be very important for WWL China in the future. “We expect the Chinese car market to expand rapidly; last year sales of new cars increased by 46%compared to 2008. After years of economic growth, the middle class in China is larger than the total population of USA and they will eventually be able to afford their own car. But for WWL our main markets in 2010 are within the High & Heavy and breakbulk segments,” says Trond Tønjum, when we meet him in WWL's Shanghai office. Normally based in Beijing, the energetic Norwegian travels approximately 150 days a year to oversee all the different operations in this vast country since he started in his current position five years ago. Onshore operations. Although ocean
transport remains the core business, WWL is expanding inland. The company has a jointventure with Chinese firms in two terminals in Tianjin and another terminal in Shanghai, as well as ownership in two Vehicle Distribution Centres at the same location. WWL also operates a trucking joint venture, catering for distribution of vehicles to dealers. “Today we are established in all major Chinese ports that have import and export of cars, trucks, buses and construction machinery. In total WWL and EUKOR combined had 230 port calls to China last year,” adds 36 WWWORLD 1 2010
Mr. Tønjum. This year the estimate for port calls exceed 300. In addition to intercontinental transport, WWL also operates the “China Express”, with three sailings a month between Japan and China. Part of global network. “Our
Predicts growth: Trond Tønjum, WWLs managing director in China expects further growth in volumes both in and out of China.
main advantage is that we can link exports out of China to our global network. Today we have regular sailings from China to Japan, Europe, Africa and South America. In cooperation with our partner Armacup we also offer regular routes to Australia and New Zealand, with rapidly increasing volumes,” says Trond Tønjum. WWL’s trademark is the “Factory-to-Dealer” concept, providing a total logistic value chain with both inland and ocean transport. One example of this is the newly signed deal with Jaguar/Land Rover, where cars are shipped out from Southampton to China and further on with inland distribution controlled and supervised by WWL. Relations are pivotal. One word that
quickly comes to mind when doing business in China is “Guanxi”. Guanxi describes the basic dynamic in personalized networks of influence, and is a central idea in Chinese society. “Relations with your customers are the key to success in China. We have a great team in China that work together and build relationships and customer partnership through meetings and informal gatherings with our customers. Learning the language is hard, but apart from that it is a privilege to work in such a major and rapidly expanding market,” says Trond Tønjum, head of WWL in China.
Most of the car production in China is mostly in the basic car segments, but for premium brands like BMW, the market is also increasing rapidly. Here from a BMW dealer in Beijing. (Photo: Arild S. Johannessen)
The Chinese car market New car and truck sales in China shot up last year to 13.6 million units, making China the world’s largest auto market. It is the first time in history that any country has bought more autos than the US; car and light truck sales in the US were just 10.4 million in 2009. China's automobile industry has been in rapid development since the early 1990s. In 2009, China produced 13.8 million units of automobiles, surpassing Japan as the largest automobile maker in the world. Of the automobiles produced, 44.3% were local brands, the rest being produced by joint ventures with foreign car makers such as Volkswagen, General Motors, Hyundai, Nissan, Honda, Toyota etc. Most of the cars manufactured in China are sold within China, with only approximately 400 000 cars being exported in 2009. McKinsey & Company estimates that China's car market will grow tenfold between 2005 and 2030. In order to make and sell cars in China, global car companies have to form, by law, a joint venture with a Chinese partner. Shanghai Automotive (SAIC), the largest automaker in China, partners with General Motors and Volkswagen, among others. Dongfeng is partnered with PSA Peugeot Citroën, Honda and Kia while First Automobile has joint ventures with Toyota, Audi and Volkswagen and sells under at least ten different brands. (Main source: Wikipedia)
WWWORLD 1 2010 37
Special report: china
eukor EUKOR started operations in China 2003. Before EUKOR was established in 2002 the car carrier division of Hyundai Merchant Marine had been working in China since 1997. Today EUKOR China is a leading outbound service provider in the roll-on roll-off segment in the country. EUKOR China has five employees in Beijing and two employees in Shanghai.
Flexibility and quick decisions on customer requests have in just a few years made EUKOR a leading roll-on roll-off operator in China. The company predicts this is just the beginning. Text and photo: Arild S. Johannessen
“China is just beginning” China: WW World meets J.Y. Park, manag-
ing director of EUKOR China in his office in Beijing. Present is also Espen Hofland, Head of Presidents office in EUKOR in Seoul. The given address in the Chinese capital is rarely random: EUKOR China is locatedon the 17th floor of the Hyundai Motor Tower in central Beijing. Import of Hyundai and Kia cars to China is part of the business, with an established shuttle service between Pusan and Shanghai. But EUKOR’s operations and ambitions go beyond importing cars from Korea. There are currently over 200 auto manufacturers in the Chinese car market; a large shares of these are global auto manufacturers who produce their cars in China for the vast domestic market. One of the largest shipping providers.
EUKOR’s operation is currently divided into inbound and outbound transport of cars and high & heavy cargo. EUKOR is the largest shipping provider for luxury brands such as Porsche, BMW, Volvo, Saab, Jaguar and Audi to China. In total, EUKOR transported more
38 WWWORLD 1 2010
than 150 000 vehicles inbound to China from global automakers last year. The ambition is to increase this number to more than 225 000 units this year. “But we also excel on our outbound service, where we export Chinese made vehicles to West Africa, South America, The Middle-East and The Persian Gulf.,” says J.Y. Park. At least 10 vessels are continuously carrying Chinese auto brands and high & heavy machinery. Bright future. EUKOR operates mostly on
the spot market, offering flexibility for the over 40 domestic auto manufacturers that are currently exporting vehicles out of China. The Chinese branch of EUKOR corresponds with the head office in Seoul daily. If a cargo
Lean and effective: EUKOR in China is already market leader in terms of volume of imported cars to China, but the employees at the Beijing office are ready to take new portions of the market in 2010: From left Zhao Hui, Zhang Ai Ping, Lu Kexi, J.Y. Park and Espen Hofland. option comes up, Seoul can react instantly and provide the right tonnage. The lean staff of five employees in the Beijing office concentrates mainly on cargo and customers. All import port operations are outsourced to partner Wallenius Wilhelmsen Logistics. “We offer an excellent package in terms of frequency, network, port calls and foreign
destinations,” says Mr. J.Y. Park. Espen Hofland adds: “The Far-East region is the tonnage driving region of the world for EUKOR. Since we have our base cargo out of Korea we have vessels in the area at all times, and can offer capacity and flexibility to the Chinese market on a daily basis.” The Chinese government has already announced that it will support the major auto manufacturers, like FAW, Dongfeng, Chana and SAIC, in expanding their exports to the rest of the world. An ambitious goal is to increase car production to 8 million vehicles by 2020 – and then to export half of that number. “This is the market with the largest potential. China is just at the starting point when it comes to car production and export,” say J.Y Park and Espen Hofland.
“The social and environmental responsible ship owner demands a demolition process that offers a safe working environment at the yard, togetherwith safe removals and disposal of any hazardous materials on board”
EUKOR has three major import ports in China: Huangpu, Shanghai and Xingang. Here M/V Asian Vision is dis charging Audi cars in Xingang port in Tianjin (Photo: EUKOR).
WWWORLD 1 2010 39
Special report: china
The yard Zhongxin Ship Recycling & Steel is one of the largest green ship dismantlers in China. Using a floating dismantle system, vessels are recycled alongside the dock. Total yard area is 400 000 square meters. Three VLCC (Very Large Crude Carriers) or five ships less than 20 000 LDT can be recycled simultaneously. The disposal of hazardous materials is handled by highly qualified sub-contractors such as Veolia Environment, operating in the Guandong province. 250 tonnes of dangerous liquids and materials were sent from the yard to the Veolia plant in 2009. The yard uses on average four months to dismantle a ship in an environment friendly way.
The ship manager Wilhelmsen Ship Management has in the past two years become one of the world’s leaders in lay-up management, and is the only service provider with a statement of compliance (certificate) from DNV for environment friendly lay-up solutions. Wilhelmsen Ship Management has its head office in Kuala Lumpur, Malaysia and has full technical management of more than 120 vessels in most segments. WSM also provides crew to more than 300 vessels in the merchant fleet worldwide.
The Zhongxin Shipyard uses a floating dismantling system where vessels are dismantled in sections alongside the dock.
Wilhelmsen Ship Management:
Managing environmental challenges - GREEN recycling Of the world’s merchant fleet, more than 12 000 vessels are over 25 years old. Thousands of these will be taken out of service in the years to come, creating an opportunity for green recycling on behalf of ship owners. Text and photo: Arild S. Johannessen “Wilhelmsen Ship Management is a total service provider, offering products and services throughout a vessel’s entire life cycle. We are now developing a green recycling product that will ensure an environmental friendly demolition of the vessel at a good price for ship owners,” says vice president John-Christen Jensen in Wilhelmsen Ship Management (WSM). Together with Tihan Konda, site manager for the Green Recycling Project, we are strolling the premises of Zhongxin Ship Recycling & Steel in the Guandong province far south in China. The yard is one of few in Asia that works in compliance with IMO’s requirements for the recycling of vessels. The Zhongxin ship yard has more than 25 years of experience from recycling vessels, and all around us we see former sailing beauties in different stages of disintegration. The workforce of 800 professional workers recycle 500 000 dwt of steel annually.
Removal and safe disposal of hazardous materials are key aspects of green recycling. In the photo a worker at the Zhongxin Ship Recycling & Steel is preparing to dispose of asbestos. 40 WWWORLD 1 2010
socially responsible. Wilhelmsen Ship
Management (WSM) does not recommend beaching vessels, which is a common practice in the Indian Sub-continent. “The social and responsible ship owner demands a demolition process that offers a safe working environment at the yard, together with safe removals and disposal of
any hazardous materials on board,” says vice president John Christen Jensen. To monitor that everything is proceeding according to the requirements, WSM brings assurance to the owner by having its own representative at the yard. “My job is to inspect and supervise the recycling process of a vessel. IMO’s guidelines for green recycling, although not yet ratified, are incorporated into our own recycling product, and that is an obligation we take seriously. Once the process is completed, a certificate will be issued to the ship owner to guarantee that their property is disposed of in an environment friendly way,” says Tihan Konda.
Site manager Tihan Konda (left) and vice president John Christen Jensen in Wilhelmsen Ship Management.
Thorough process. Environment friendly
recycling of a vessel with thousand of tonnes of steel, machinery, chemicals and other materials, is not an easy process. In the first phase class certified experts from WSM’s recycling team inspects the vessel, collects samples and reviews various manuals and records on board. After careful analysis, an IHM (Inventory Hazardous Material) list is worked out. Once the IHM is prepared, it is submitted to Class for their approval and for a Statement of Compliance, (SoC) popularly known as the Green Passport. This IHM/SoC gives an overview of the hazardous material on board, their location and the approximate quantities. Before the vessel arrives at the recycling yard, a “Ship Recycle Plan” is produced. The yard then starts a total pre-cleaning of the vessel, section by section, followed by the demolition. Marginally more expensive. Wilhelmsen
Ship Management has already made the first contracts for Green Recycling with European ship owners. And in contradiction to some people saying that environmental recycling is too expensive, WSM can prove otherwise. “The price differences between what beach yards in Bangladesh and China can offer, compared to what the environment friendly
The Veolia waste management plant is cooperating with the recycling yard. Chinese yards offer, are becoming marginal. We have seen a trend that these price differences have been reduced over the past years. The marginally lower sales price is a good corporate social responsibility investment for the ship owners who want to rest assured that their vessels are demolished in the most environment friendly way this market can offer,” says Rakesh Bhargava, green recycling manager in Wilhelmsen Ship Management. “This will be a huge market in the years to come, with very little competition. We see a window of opportunity now to become a leading ship management company offering green recycling on behalf of ship owners,” adds vice president John-Christen Jensen. Want to know more? See www.wilhelmsen.
WWWORLD 1 2010 41
Special report: china The history of World Exhibitions The first official World Exhibition took place in London in 1851. Since then the character of world expositions has evolved. Three eras can be distinguished; the era of industrialization, the era of cultural exchange, and the era of nation branding. The area of industrialization covered roughly the period from 1800 to 1938. In those days, world expositions were especially focused on trade and famous for the display of technological inventions and advancements. In 1939 the exhibitions became more strongly based on a specific theme of cultural significance, and began to address issues of humankind. From Expo 1988 onwards, countries started to use World Exhibitions more widely and more strongly as a platform to improve their national images through their pavilions. The theme of Expo 2010 is "Better City, Better Life," representing the common wish of the whole humankind for a better living in future urban environments. This theme represents a central concern of the international community for future policy making, urban strategies and sustainable development. The next Expo will be held in Yeosu, South Korea in 2012 with the theme "The Living Ocean and Coast: Diversity of Resources and Sustainable Activities".
WW group at World EXPO The Wilh. Wilhelmsen group is one of the main private sponsors of Norway’s participation at EXPO 2010. The largest ever world exhibition takes place in Shanghai between 1 May and 31 October. Around 200 countries and organisations are participating and an impressive 70 million visitors are expected to the Expo area. Text: Bjørg Ekornrud Photo: Oscar Malpica and Bjørg Ekornrud China represents a prominent market in terms of the maritime industry and it is an important market for our services. Wilh. Wilhelmsen (WW) has been operating in China for several years and we have many offices in the country. EXPO 2010 is an important demonstration of our presence in China, and a unique opportunity to build relations. Norwegian maritime days. As sponsors
THE SIGN IN SHANGHAI: This is the sign from WW’s first agency in China, dating back to 1947. Pointing at the sign is former managing director S. H. Cheng in Barwil (the photo was taken back in 2006). Photo: Håvard Solerød
WW - a long history in China WW established its first Chinese agency in 1947. Along with other foreign companies the agency had to be shut down in 1961 as a result of the revolution. Today, 49 years later, we have definitely made a comeback to China’s largest port. The nation’s fantastic growth in recent years also makes room for harking back to the old days. We found the right address – No. 34-Yi, Yanan Road, East. Wilh. Wilhelmsen Line and Barber-Wilhelmsen Line (Northern Lines China Agency Ltd.) had their offices on the 1st floor. Some of the letters have fallen off, but this just reinforces the impression that time has stood still since the office was shut down.
42 WWWORLD 1 2010
WW has been actively involved in the planning of the official Norwegian activities in the EXPO period. Following this WW have had speakers covering topics concerning environmental challenges and solutions, innovation within ships design, and safe and cost efficient ventilation solutions on both the Maritime days and Energy days. In addition WW's group CEO Ingar Skaug was part of the official Norwegian business delegation to China in May together with HRH Crown Prince Haakon of Norway and the Norwegian Ministers of Trade and Industry and of Oil and Energy. During these days he gave a speech at a high level business conference on environmental opportunities based on our vision of “Shaping the maritime industry”. “We based our decision to participate at the Expo on the great amount of activity we have in China, and also the fact that China is becoming increasingly important to us. We believe that Expo represents an arena with great potential for relation building and is giving us an opportunity to meet with high level Chinese representatives,” says Mr. Skaug.
Better city. Better life. The theme for
the World EXPO 2010 is “Better City, Better Life”. For the first time urban life and urban challenges will be the main theme of a world exhibition. City life is determined by the city's relationship with nature in and around the city. It is through this approach to city and nature that Norway addresses the EXPO theme. Norway. Powered by Nature. The theme
for Norway’s pavilion is “Norway. Powered by nature”. In Norway, the cities are few and small but every Norwegian city has one quality in common. They all exist in close relationship with nature. In Norway nature is experienced as a source for recreation and inspiration as well as pure physical energy. The Norwegian pavilion is made out of laminated wood using 15 highly stylized models of Norwegian trees. Each tree has four branches and varies from 5 to 15 meters in height. From the tips of the branches, a canvas is strapped and dragged giving the roof a dramatic span. Inside the pavilion, the visitors can experience the city life, creativeness and the Norwegian nature through four landscapes; the coast, the city forest, the fjords and the arctic. “The theme for the Norwegian pavilion fits well with our groups focus on the environment. We hope that our efforts to provide more environmentally responsible products and services to the maritime industry will contribute to better cities and a better life for people living in the cities all over the world,” says Dag Schjerven, president and CEO, Wilhelmsen Maritime Services.
WMS Employee Day at EXPO 2010 On Sunday 30 May Wilhelmsen Maritime Services hosted an employee day at the Norwegian EXPO pavilion. Employees from Wilhelmsen Ships Service, Wilhelmsen Ships Equipment and Wilhelmsen Marine Engineering in Shanghai were invited for a Wilhelmsen Employee Day at EXPO together with their families. The employees and their families were greeted at the VIP entrance of the Norwegian pavilion. After being served some refreshments, a welcome speech was given by Dag Schjerven, president and CEO, Wilhelmsen Maritime Services, followed by a guided tour in the Norwegian pavilion. Members of the Central Management Team
of WMS as well as the management teams from each business area were also present to meet the employees and their families. The employees were asked to fill out a questionnaire about the environmental solutions under the ACT endorsement. Out of all the questionnaires received, a lucky draw was performed and six winners won the prize of an iPod touch. At the end of the day, each family received a gift bag with Wilhelmsen gifts and a souvenir of the EXPO 2010. “It was really a pleasure for me to get the opportunity to meet all our employees in Shanghai. In Wilhelmsen we often talk about ourselves as a global family. Meeting all these dedicated people together with their families really emphasizes this,” says Dag Schjerven.
having fun: Jack Hu in Wilhelmsen Ships Equipment with wife and daughter enjoyed themselves at the WMS Employee Day.
WWWORLD 1 2010 43
The two lives of bosun Rodel Adriano When bosun Rodel Adriano (43) was still a boy, he used to dream about a life without poverty and daily worries about the next meal. His dream started him onto a road to two very different lives: one filled with loneliness and longing, the other full of joy and happiness. And he can't have the one without the other. Text: Einar Chr. Erlingsen Photos: Dag Ivar IndrebĂ¸, NRK
44 WWWORLD 1 2010
WWWORLD 1 2010 45
TV star Rodel
The ship: WW's Tortugas served as the common link between four TV programs on the history of Norwegian shipping.
The countdown has started. With a heart that grows sadder with each passing day, Rodel Adriano realises that yet another holiday is soon coming to an end. Three months might seem a long time, and it did when he first arrived back home towards the end of 2009, after nine months onboard Wilh. Wilhelmsen's ship Tortugas. So how can time have flown so fast? He shakes off the sad thoughts to concentrate on what his seven year old daughter Julie is trying to tell him. She deserves nothing less than his full attention, with a father who is away at sea for most of the year. She is the apple of his eye; there is nothing he's not willing to do for her. Rodel's dream. Home for Rodel is the
Producer and star: Norwegian TV project leader Svein Haaland with bosun Rodel Adriano. When a team from Norwegian state television (NRK) made a series on Norwegian shipping last year, bosun Rodel Adriano was one of the front figures. NRK told the history of Norwegian shipping during a series of four programmes, sent at the beginning of this year. WW's PCTC Tortugas appeared in all four shows, as did three of its crew: master Pål Myhre, chief engineer Thoralf Sødergren - and bosun Rodel Adriano. The TV team followed the ship from Yokohama in Japan to Bremerhaven in Germany, and even joined Rodel back to his home in the Philippines for a holiday. "I have yet to see the programmes myself, but the team promised to send them to me on DVD," says Rodel. "I consider it a great honour to be part of the series. It's among the most exciting events in my life. I was very nervous and shy whenever the cameras were running, but decided that the best way to handle it was by being myself and saying what was in my heart."
municipality of Penaranda, in the province of Nueva Ecija, Philippines. Like tens of thousands of his countrymen he has made a good living working on foreign ships. Filipino mariners are considered both competent and reliable, and work on many nations' commercial fleets, including Norway's. Seventeen thousand Filipinos work on Norwegian ships, including those belonging to WW and related companies. Looking back to his own childhood, Rodel realises that he has been extremely fortunate. His family was dirt poor then, even though his father Fernando and mother Lolita struggled every day to make enough money to give him and his two younger sisters a decent life. "We were living one day at the time. No matter how hard my parents worked, there was never enough money for more than the bare necessities and not always that," says Rodel. "I used to dream of a future without hardship for my loved ones. So when I was 22 years old, I decided to try my luck and apply to one of the maritime manning agencies. I was among the lucky ones to be selected and went on board a car carrier as a mess boy, soon to become a mess man," says Rodel. His first voyage lasted for two full years. After a short holiday he was back on board again, this time as an ordinary seaman. Then followed a period as AB and finally bosun, the position he still holds.
Free time: The crew on board Tortugas get ready for basketball training on deck.
Julie's future. Most of all, Rodel is grateful
that he can give Julie an education much better than he could even dream of himself. Every morning a teacher arrives at his house to give her private lessons. Then in the afternoons, Julie brings her books to the private school she
"This is the way I can continue to help my family"
The Adriano home. Rodel Adriano had
started on the long path towards a better family future. Today the proof is all around him; although not a fancy home, it contains three 46 WWWORLD 1 2010
bedrooms, and a kitchen with a dining table just large enough for his extended family of nine. There is even a small terrace in front and a garage for his father's jeepney, a small and brightly decorated bus very typical for the Philippines, and which Rodel has bought for his savings to ensure his daddy a job. During his holidays he has also built a small shop for his mother. When not working there, she tends the pigs and the hens that have also been bought with Rodel's savings over the years. The pigs have their own pen at the back of the house, while the hens are ranging freely in the yard. The Adriano household is a lively one! Thinking back, Rodel is proud of what he has achieved. He supports his daughter, his parents and his youngest sister, and can even pay for the insulin she needs to keep her diabetes in check.
attends. In the Philippines poverty is still very much a reality, so Rodel finds great happiness in the thought that he can give his daughter a good start in life. "I want my daughter to attain a profession of her own choice. As her father, I will give her whatever she needs to give her a brighter future without the hardships I knew," says Rodel. He is very grateful towards his family, and realises that he would have huge problems without them, especially following his divorce from Julie's mother. How could he have looked after his daughter without the help from his older sister? She is Julie's guardian and Rodel's contact whenever there is something to attend to. His sister is bringing Julie up with her own two children in the Adriano household, her own husband being away for long periods of time working in Saudi Arabia. Time to leave. Then Rodel's day of depar-
ture arrives. His suitcase is packed; the next nine months will be spent on board the WW ship Tirranna. How he hates to see Julie's tears when he leaves, while struggling to hide his own. But
Rodel at sea: Bosun Rodel Adriano on board Wilh. Wilhelmsen's PCTC Tortugas, where he became a TV star.
there is nothing to be done, he has to go. "This is the way I can continue to help my family," Rodel says. "So I will continue to sail as long as I'm able to." He considers himself very fortunate to have become a Wilhelmsen employee. His career started on a Nosac/Norwegian America Line (NAL) ship, and he decided to stay on when NAL was incorporated into WW back in 1996. "That's a decision I have never regretted," says Rodel. "WW cares for its employees. This gives it a competitive edge towards other companies. The wages are good, so I've stayed on through the years and consider myself lucky to be part of this fast evolving company," Rodel says. Back at sea. He joins the Tirranna in
Incheon, South Korea on 23 February. One modern car carrier is pretty much like any other, and as Rodel recognises many among the crew from earlier voyages, he soon adapts
Rodel at home: A happy father with his beloved daughter Julie.
to the routines on board. His responsibility as bosun is to organise and supervise the deck crew's daily tasks. After a short planning session in his bosun's office, it's off to the paint store where he starts to distribute paint and tools to the crew with the assistance of AB Wilfredo Delfin. Maintenance is a never-ending task, and a well-maintained ship is a matter of pride to both crew and company. The days are busy, which is just as well. It keeps the longing for the family at bay. It's only back in his lonely cabin that Rodel gets the time to think of his loved ones, the events he can't be part of, things back home which really should have his full attention. "But then I realise that this is also a part of my life, of the sacrifices required from me to secure a much better life for those that I care for. This has become my destiny. So I focus on the positive effects for my loved ones from my
choice of career," says Rodel. He adds that the introduction of VSAT connections on almost all WW ships represents a tremendous improvement. "Even if it is slow, it is much better than nothing. It enables me to stay in constant contact with my family and to monitor my daughter's progress. Since the Internet is free it also saves me quite a bit of money. So when off duty, I spend a lot of time at my computer, or chatting with my friends and colleagues on board, or just take a good rest," says Rodel. So what does he feel that his life - or rather, two lives - has given him? "I'm really satisfied with what I have now. As the saying goes: ‘A person without contentment is a person without happiness.’ And I am happy, although a mariner's life is a lonely one. I often consider a truth realised by many a mariner before me: on board you exist. It's back home that you really live." WWWORLD 1 2010 47
SHIPS AGENCY RE-DEFINED One contact point: Dealing with one company on a worldwide basis helps streamline operations and bring about economies of scale while retaining local knowledge of the port, fluency in the local language and contacts with local service providers.
➜➜One global agent ➜➜Standardised service ➜➜Predictable pricing ➜➜One disbursement account
ships spares LOGISTICS ➜➜On-time delivery of ships spares worldwide, from
first mile to last mile
➜➜Efficient supply chain ➜➜Unparalleled global network of offices ➜➜Professional follow-up ➜➜Frees up customer resources
New concepts WILHELMSEN SHIPS SERVICE:
for ships agency and ships spares logistics
Wilhelmsen Ships Service (WSS) has taken a new look at the ships service industry. Using the latest IT software and communication techniques, WSS is launching both a redefined ship agency concept and making a brand new approach to ships spares logistics.
thereafter. Importantly, the service provides the customer with all the information they need to maintain good control of when and where their spares are delivered, and at what cost.
Text: Don Pyle
From first to last mile. Wilhelmsen Ships
Norway: Most shipping companies deal
with local agents on a spot basis, using a different agent in each port. A list of tasks must be made for each port and followed up during the visit. Operational and disbursement accounts in various formats must also be maintained. Many operators are finding this repetitive work to be a costly burden. To save both time and money for ship operators, owners and charterers, Wilhelmsen Ships Service has developed a new offer aimed at simplifying this process, no matter where their port call is. By having a more structured way of managing multiple port calls, customers will experience more predictable ships agency performance and less administrative work. This gives less opera48 WWWORLD 1 2010
tional and administrative costs and improves efficiency. The Global Agent. A service agreement with Wilhelmsen Ships Service ensures a single, dedicated expert – a global agent – to coordinate all port calls. In addition to coordinating all the customer’s port calls, the Global Agent keeps close contact with the port operations network to ensure that customer’s requirements are shared worldwide. Appointments are sent to the Global Agent who then follows up with port operations colleagues around the world for a total service, including pre-arrival and post-departure needs. The services themselves are performed by local providers.
Customer feedback to date confirms that dealing with a trusted company on a worldwide basis contributes to more streamlined operations and economies of scale. ships spares. The Wilhelmsen Ships Service
initiative also includes an offer of seamless transport of ships spares from supplier to vessel. To offer a true worldwide service, a spares supplier must have an efficient supply chain and know which ports have the best delivery infrastructure, technical backup and assistance available. As part of an international shipping company with 150 years experience, Wilhelmsen Ships Service knows the importance of reliable spares deliveries and has designed its offer
Service offers seamless transport of needed spares from the supplier to the ship, without costly delays along the way. Proof of delivery on board the vessel is always provided. A key element of the offer is a single point of contact, with total visibility of data such as prices, order status and a full range of reporting features. Capabilities also include difficult and distant destinations. Delivery can also be arranged at sea or off-port locations.
Freight Forwarding Centre. To provide
its global network with the best support possible, Wilhelmsen Ships Service has opened a Freight Forwarding Centre near Hamburg, Germany. The Centre’s mission is to manage, control and optimise the transport of ships spares from the supplier to the vessel.
Seamless delivery: Wilhelmsen Ships Service offers seamless transport of needed spares from the supplier to the ship, without costly delays along the way. WWWORLD 1 2010 49
Green terminal ➜➜Wallenius Wilhelmsen Logistics’ vision for a futuristic cargo terminal ➜➜Energy use reduced by up to
➜➜Power to the terminal to be provided by wind and solar energy ➜➜Rain water will be collected and stored in
tanks for the terminal’s water requirements
The future will be clean and green It is the ocean cargo terminal of the future - powered by the sun and wind. The futuristic terminal has no conventional power, uses no fossil fuels and releases no harmful emissions into the atmosphere.
Norway: The vision for the futuristic Castor
terminal recently launched by Wallenius Wilhelmsen Logistics (WWL) embraces the company’s innovative vision of a more environmentally sound future for land and sea logistics operations. The energy used to handle each unit of cargo within the terminal complex will be reduced by as much as 80 per cent. “We want to extend our zero emissions ambition from ocean activities to port and land-based activities,” says Erik Nyheim, COO, Terminal and Inland Services at WWL. “Now, our environmental goals will better cover our factory-to-dealer product scope, benefitting our customers who are starting to measure and reduce the carbon footprint in their entire supply chains.” Coupled with E/S Orcelle, the company’s visionary zero emissions concept cargo ship unveiled five years ago, the Castor Green Terminal embraces WWL’s innovative vision of a more environmentally sound future for land and sea logistics operations. Wind turbines will provide the prime source of power for the Castor Green Terminal along with solar photovoltaic roof panels. The terminal will also be self sufficient for all its water needs – rain water collected from its roofs will be stored in underground tanks and then reclaimed. The location of the Castor Green Terminal will be based on detailed environmental studies of the local area, including potential impact on sea life, birds and animals.
The new generation roll-on roll-off carriers, the Mark V class, under construction at Mitsubishi Heavy Industries in Japan. The new vessels will have an overall length of 265 meters, and are equipped with six fixed heavy decks and three liftable decks for all sorts of rolling cargo.
Mark V in the making
WW continuously evaluates the group’s tonnage situation, seeking an optimal fleet. In addition to exploring opportunities in the current market, WW has a newbuilding programme. Text: Benedicte Gude Photo: Alex Maresca
Energy efficient: The futuristic Castor Green Terminal will reduce the energy used to handle each unit by up to 80 per cent by utilizing power from the sun and the wind. 50 WWWORLD 1 2010
At the end of June 2010, WW and partner Wallenius Lines have a total of 21 vessels on order at three different yards, Daewoo Shipbuilding and Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Mitsubishi Heavy Industries (MHI). The four Mark V vessels being build at MHI, to be delivered in 2011 and 2012, are progressing according to plan. The first Wilhelmsen vessel is expected to be delivered in March 2011. “The first of these four very unique vessels is growing in the dock every day,” says Alex Maresca, WW’s site manager at the
Mitsubishi yard. “This is a new design for both the yard and us. We have therefore a rather long production process. It is a new challenge for the yard to build such large roro vessels as the world has never seen similar vessels before.” New ground is broken in this kind of vessel design and puts MHI to the test. “The people from Mitsubishi are doing a tremendous job and we have the very best working relations on all levels with the people involved in this project,” says Maresca. At DSME and HHI the group is building large car and truck carriers, with the next Wilhelmsen vessels to be delivered in May 2011. All the vessels will commence service for Wallenius Wilhelmsen Logistics. WWWORLD 1 2010 51
Peugeot: A one stop solution When Sime Darby Automobile became Peugeot's representative in Australia they chose to outsource all logistics to Wallenius Wilhelmsen Logistics. Text: William Ross Photos: Eamon Gallagher Courtesy of Venture magazine
AUSTRALIA: In 2001, Sime Darby Automobile
Pty. Ltd. became the sole representative for Peugeot cars in Australia. With a new, dedicated sales and marketing team, the company quickly grew the business, so that the 2001 figure of some 3 000 cars imported annually from France had jumped to 8 000 per year in 2009 – and Sime Darby is looking at breaking the 10 000 vehicle figure shortly. One thing they didn’t have to do, says Ken Thomas, general manager and director of Sime Darby, was increase their logistics staff when they took on the Peugeot assignment. Built on trust. “We needed to work with
a company we knew that we could trust. Wallenius Wilhelmsen Logistics (WWL) was able to provide an in-house service where we could outsource the responsibility of managing our inventory,” he says. “This means that when the vehicle arrives from the factory at the port of Le Havre in France, WWL manages the vehicle’s ocean transport, its arrival in Australia, the movement of the vehicles to storage facilities, the preparation of the vehicles prior to distribution to the dealer network, and the organisation of internal freight to the point of retail sale. It’s basically a one-stop logistics solution for us.” Monitoring the supply chain. Sime Darby was also one of the first companies, says Jeff Black, contract manager, business development for WWL in Australia, to make use of WWL’s visibility system. “With this tool we are able to monitor and manage their supply chain,” he explains. 52 WWWORLD 1 2010
PRE DELIVERY: Rocky Robinson screws number plates on to the vehicle, preparing it for delivery.
CUSTOMER READY: John Keats hoses down the car at Prix Car Services in Minto, NSW, a Wallenius Wilhelmsen Logistics subcontractor.
"I suppose that one of the reasons we like working with WWL is that it’s not just a commercial contract, but a personal relationship as well" “It’s integrated right into Peugeot’s factory information system, as well as the transport company information system – pretty much everything along the supply chain. From the wharf in France through to the dealer here in Australia, we can monitor the progress of individual vehicles.” Ken Thomas describes the system from the customer viewpoint. “WWL basically said to us, what if we build you a website that collects all the information from various sources and create an information database,” he says. “It gives us predictability modelling. So, for us
as the user, instead of contacting different suppliers and trying to calculate things in our heads, the system does it for us.” Ken Thomas says that this full coverage of logistics services provided by WWL is part of a very close and successful relationship. “I suppose that one of the reasons we like working with WWL is that it’s not just a commercial contract, but a personal relationship as well. That means the people working in both companies all the way up to the senior management level, where we talk together about strategy, policy, pricing and other matters.” WWWORLD 1 2010 53
jennifer XU ➜➜Born in China 1976 ➜➜Grew up as a ‘political orphan’ in Shanghai ➜➜Education: diploma in marketing and business
management ➜➜Started working with Wilhelmsen Ships Equipment 2006 ➜➜Global head of HR/OD in WSE ➜➜Married 2009 ➜➜Enjoys: travelling, scuba diving, skiing, learning about other cultures
Tiny, but tough
As with a whole generation of Chinese, Jennifer Xu's childhood was heavily affected by the aftermath of the Cultural Revolution. Which is perhaps why she has emerged as a strong and very competent young executive, with a keen eye for what makes people perform at the best of their abilities. Text: Einar Chr. Erlingsen Photos: Oscar Malpica
54 WWWORLD 1 2010
When in China ... When working in another country, it's easy to involuntarily stumble on rules for good social behaviour. Here is Jennifer Xu's advice on what to do and not to do: ➜➜Don't finish all dishes on the table if you go to a Chinese restaurant ➜➜ Don't put your chopsticks inside a rice bowl ➜➜ Don't hug or kiss when you greet a Chinese, shake hands instead ➜➜Don't trust the traffic light when crossing the street, check both ways
HANGHAI, CHINA: The
city where Jennifer Xu (33) grew up is today at the very heart of an economic marvel that in the past two decades has transformed China into one of the world's leading powers. There is bustling activity everywhere: from building new and impressive infrastructure to the construction of new ships. Even in the middle of a global recession, China has continued to grow and prosper. One could say that Jennifer has grown professionally along with her city. She is today head of HR/OD globally for Wilhelmsen Ships Equipment (WSE), responsible for more than 300 employees around the world, mainly in China, Japan, Singapore, Korea, the US, Poland and other European countries. The job requires a well-developed understanding of cultural differences and the ability to grow with its challenges. This seems to be an easy match for Jennifer. So how has she become the person she is? A child of the revolution. The events that
"Westerners frequently forget to ask what the Chinese opinion is. Don't"
56 WWWORLD 1 2010
shaped Jennifer's childhood took place years before she was born, even before her parents had met. The Cultural Revolution, launched in 1966, came to change the lives of millions of ordinary citizens during the years that followed. Among those were Jennifer's parents, both living in Shanghai. According to the revolutionary measures each family was required to send one of their members to the countryside to do manual labour, regardless of background or education. Jennifer's parents ended up in the same arms factory and got married. To return to Shanghai was out of the question in those days, so when Jennifer was born her parents decided after a while that she should have a better education than what was possible locally. So she was sent to Shanghai to be brought up by family members. So for eight years, between ages two and ten, Jennifer alternated between her grandmother on the maternal side, sometimes an aunt, sometimes her paternal grandmother. She only saw her parents on the rare occasions when they were allowed to go to Shanghai to visit for a few days. Jennifer still can't think of her childhood without showing emotions. There is little
doubt that her early experiences have been essential in shaping her mentality, this is a young lady who doesn't give up easily! "Children and family relations are very important in our Chinese culture," she says. "It was a difficult way of growing up, but looking back, I think that it helped me to become quite an independent kind of person." When she was ten, her parents were allowed to return to Shanghai to build up a normal family life. "Today we enjoy a close relationship," says Jennifer. "I go to see them every weekend, and to sneak some of my mother's delicious food." Where East and West meet. British author
Rudyard Kipling once wrote: "East is East, and West is West, and never the twain shall meet." Jennifer doesn't quite agree. She thinks that East and West have a lot to learn from each other, to the benefit of both. After graduation she started working for an Australian engineering company, which started her off onto a long and steep learning ladder. Among her tasks was to act as translator at the construction sites. "It was a totally new industry to me. I didn't even know the right words for the types of machinery they used. A typical Chinese reaction then is that ‘I don't want to slow them down, so I’ll hide the fact that I don't understand.’ Which didn't work at all, of
"I started to ‘learn by walking around,’ which after a while proved to be very efficient" course. So I frequently asked the engineers to elaborate and explain. They would take me with them when inspecting a work site, show me what was going on, even made drawings to help me understand. I started to ‘learn by walking around,’ which after a while proved to be very efficient." "It was very different from the Chinese way of doing things! It could be the smallest matters, such as how people behave at social functions. If invited out with Western associates, we have learnt that we had better eat first. Westerners like to start with a drink, do some talking, while the Chinese arrive eager to start dining," says Jennifer. "We Chinese are not really good at socialising. We tend to say to ourselves: ‘What should I talk about? Why should I talk to you? Don't talk with strangers.’ It is important to be aware that in China a lot is based on trust and personal relationships - which is very difficult
to achieve and at best takes a very long time. But once achieved, it will open almost every door." A good coach. To address ones own limitations is by no means an easy task in Jennifer's experience. When she first joined WSE she still didn't feel like speaking her mind or asking when there was something she didn't understand. "My reaction still was ‘I don't want to slow them down’, which I admitted to my company coach and to WSE president Peter Stockley, who proved to be very supportive. He told me in clear words that I was too quiet and not confident enough in promoting my own ideas," Jennifer says. "Coaching has helped me to understand myself better, why I react as I do, and how to break down the barriers which limit me. I consider myself very fortunate to have joined a WW company, where the leaders recognise that they are not always right, and people are not afraid to tell them so. It is an organisation where gender and age don't matter much, but what you can do, and what kind of spirit you bring with you to work. Which is quite unusual from most Chinese and Western companies alike." "Company culture will decide if you succeed in attracting and keeping good employees; how they are treated, that we are open and fair and encourage them to develop their skills. I'm proud to say that our company culture is among our attractions when we recruit people."
"Any limitations are really a product of your own mind"
Learn from the Chinese. Breaking down
cultural barriers is a two-way battle, where each side must contribute. So what can Westerners learn from the Chinese? "Most important of all," says Jennifer: "Westerners frequently forget to ask what the Chinese opinion is. Don't. Chinese and Westerners have different ways of expressing themselves. In general Westerners tend to be more self-centred. This stems from their upbringing, starting in kindergarten and school. The Chinese are more concerned about other people; this is deeply rooted in our culture and history. We help each other; we show respect for those older than us. When you share an apple, you give the largest piece to your friend. This is still the mentality, although sadly it seems to be changing among our youngest generation." "Having said this; to relate to another culture is not as difficult as it might appear. As long as you treat people as people, they will behave like people. You don't really have to treat people from other cultures in different
Working in shinghai: Jennifer Xu with colleagues in Wilhelmsen Ships Equipment. ways. What it really boils down to, is respect," says Jennifer. Keep on pushing. Last November Jennifer
married her boyfriend of five years, Germanborn Andreas. "Before we met, I didn't really have that many interests outside work," she admits. "Some shopping, singing with the girls, that was about all. To relate to someone from another background has made a lot of difference. Before Andreas most of my travelling was business trips within China. He has encouraged me to challenge barriers, both real and
imagined ones. We have been on many holidays in different countries and seen different cultures, and Andreas has literally pushed me into new activities like scuba diving and even skiing," says Jennifer. "Being somewhat of an ‘easy to panic’ type of person when met with the unexpected, this has taught me to keep on pushing until I master some new challenge. It has helped me to enjoy life in a broader sense, and to realise that any limitations are really a product of your own mind. It is up to you to move beyond them. When you realise this, there are really few limitations as to what you can achieve." WWWORLD 1 2010 57
A total package for leadership development
Introducing the Total reward programme
The Wilhelmsen group systematically works towards increasing the leadership capabilities and preparing its leaders for the future needs of the organisation. Wilhelmsen is now in the process of launching a total leadership development package.
Norway: The project was headed by Cecilie Pedersen, HR manager global
Text: Marianne H. Wang Photo: Stacey Trodal Norway: The package embraces the “complete
life cycle” of a manager in the Wilhelmsen group from the first assignment as a manager to executive level training of our key personnel. Commitment through our vision. “It is important to prepare our managers for the future,” says Rune Skarsem Pedersen, vice president HR & OD in Wilhelmsen Maritime Services (WMS). “Our vision of shaping the maritime industry sets the direction and sends a message to everyone to contribute in creating an innovative organisation culture. The vision requires us to have competent managers with innovative skills to guide us.” The Wilhelmsen group has developed new leadership expectations, setting the ambition level as well as clarifying the requirements the group has of it's managers. “Being a leader means determination to create a path rather than following others. It means to inspire, to influence and to initiate productive change within people and processes as we work towards our vision. This way we contribute to a stronger image, reputation and credibility of our industry while we continue to provide value to our stakeholders,” says Skarsem Pedersen. Building on current programmes. The
Wilhelmsen group currently offers two leadership development courses, the “Management 58 WWWORLD 1 2010
Skills Development Programme” and “Global Leadership Development Programme”. Both programmes target mid-level managers and senior leaders and are run by WW Academy, WW’s in-house competence centre. “We need to combine the vision with the needs of the business when we develop management programmes for the WW group,” says Johanna Sunden, head of WW Academy. “Based on requests from the subsidiaries and business areas, WW Academy is now creating basic training for newly appointed managers called “New as a manager”. The curriculum for this training will be prepared and quality stamped by WW Academy, but unlike the other management courses, this training will be run by the business areas themselves locally. A pilot project will be carried out in the fourth quarter of 2010. In the other end of the life cycle, we will find the “Executive Development Programme” where senior managers will be offered to attend executive management programmes at internationally well-reputed business schools. Candidates will be nominated end 2010 and the programmes will be carried out in 2011. Kirsten Haune, group vice president HR & OD in WW sums up; “All we know about the future is that changes will come, and they will come faster than before due to the global nature of our business. We need to ensure that our managers are both suited to be managers and to give them the best possible tools to inspire their teams, manage change and create value for the company.”
In 2009, the HR departments in Wilhelmsen started working on a total reward programme for the group. The aim is to brand Wilhelmsen as an attractive, fair and responsible employer that rewards performance in line with company values and goals. Text: Marianne H. Wang
processes in Wilh. Wilhelmsen (WW) and Henk Verhoek, compensation and benefits manager in Wilhelmsen Maritime Services (WMS) and has now been approved by the top management in both companies. Attract, retain and develop. “Our ability to attract, retain and de-
A good tool: Kirsten Haune, group vice president HR & OD in WW and Rune Skarsem Pedersen, vice president HR & OD in Wilhelmsen Maritime Services see the new package for leadership development as an excellent tool to assist managers in meeting our group’s new leadership expectations.
Executive programmes NEW
• Business and leadership • IMD and London Business School • Target: Top executives
Global Leadership programme
• Leading yourself and leading others • Leading the business; innovation, change and growth • Target: Manage a business or global function
Management Skills programme
• Self-awareness and leading with values • People management and understanding the global business • Target: Manage function or people
New as a manager training NEW
• Basic management skills and expectations of a manager • Governing elements from a manager’s perspective • Target: Newly appointed managers
velop our employees is one of the Wilhelmsen group’s main competitive advantages,” says Kirsten Haune, group vice president HR & OD in WW. “Having a global reward programme with flexibility for local requirements in place will ensure transparency in the organisation and help us to move towards the performance culture that we wish to have in our group of companies.” Much more than just cash. Most people think of “reward” as only the payment in cash received each week or month, but this is only one of several components. The Wilhelmsen total reward programme encompasses all benefits that an employee receives from his or her employer, both concrete benefits such as base and variable pay, personnel insurances, pension and more, but also more intangible benefits like training, development and the possibilities for international assignments. “We believe that the quality of our services depends to a great extent on the performance of the individual employee and therefore we give high priority to training, development and motivation of our personnel,” adds Rune Skarsem Pedersen, vice president HR & OD in WMS. “The total reward offer should be competitive against defined markets, and we use the Hay group method of job evaluation to develop a consistent global framework for key elements of the reward programme. Using Hay and the total reward philosophy and policy will give our managers a solid platform for making decisions regarding employee rewards. This will contribute in creating a better link between performance and pay. We believe this is important in order to develop a more performance based culture, which is one of our objectives,” says Mr. Skarsem Pedersen. The programme will be implemented globally during second half of 2010 and 2011.
"Our ability to attract, retain and develop our employees is one of the Wilhelmsen group’s main competitive advantages" WWWORLD 1 2010 59
Ww HR/OD 10 questions: Mette Ungersness Bakke
Global Leadership Development Programme (GLDP):
To build good relations among business units is a good recipe for smooth IT communications, according to Mette Ungersness Bakke, senior vice president WIT.
The Global Leadership Development Programme GLDP is WW Academy’s programme for senior leaders who want to make a difference. Here experienced leaders are focusing on how to further increase their impact as well as how to drive innovation and change.
Text and photo: Stacey Trodal
How long have you been working in the company? A: In total, 25 years.
Text: Arild S. Johannessen “Through this programme, the WW group aims to accelerate towards our vision of being a shaper in the maritime industry,” says Johanna Sundén, Head of WW Academy. WW World meets Class of 2010 at their second gathering in Shanghai, China. Out of the 28 participants, all business areas in Wilhelmsen Maritime Services are represented, and even WWs joint-venture EUKOR. “What kind of candidates are you looking for?” “The business areas nominate effective leaders who are able to focus their energy on the future and the possibilities that lie ahead rather than administrating the past. We want leaders who are willing to step up, contribute and take responsibility,” explains Johanna. Additional criteria to participate are CMT (central/corporate management team) members, business managers, managers of a global function Two pillars in Module 2 are “Leading change” and “Leading Innovation”: “As a global leader you have a responsibility to initiate and drive innovation efforts. Leaders who have the ability to balance operational efficiency and innovation will be shapers in our company as well as within our industry. During the programme we focus on having a systematic, proactive and structured approach to innovation,” says Johanna Sundén in WW Academy. When we talked to some of the participants 60 WWWORLD 1 2010
quirements. More and more of the business applications are integrated through complex solutions and this combined with the demand for agility and flexibility while operating a cost effective infrastructure is challenging for us.
Johanna Sunden at the second module of WW Academys GLDP programme in Shanghai.
Q: Why was WIT established? A: It had to do with complexity and the need to keep focus on the users and control on the business. Wilhelmsen Maritime Services (WMS) has grown into an integrated service provider with a global reach and in this setting it is vital that the IT component keeps a sharp focus on the technology, the users and not least the business controls. We found that a separate company within WMS would achieve this best.
Q: Are there any new exciting projects in the pipeline? A: We have decided to establish a project for Application delivery. The overall objective is to deliver an improved infrastructure to better support future application delivery. Q: What is one accomplishment you are proud of? A: Growth in WMS has demanded a high level of new projects and changes. I am very proud of my organisations ability to handle this growth and at the same being able to deliver stable operational environments for our 6000 end users around the world.
Q: How would you explain your current role? A: I think the best way of describing my current role is as one that is able to build good relations with the business areas and at the same time ensures we get the most out of the competence we have within WIT.
Two of this year’s participants, Bistra Georgieva and Sateesh Pillai, both Wilhelmsen Ships Service they also mention the great value of networking and new friendships: “Establishing connections among other leaders is a true benefit for us participants. Personally I also learn more about how I act as leader, and useful tools to manage change and innovation,” says Bistra Georgieva, general manager in Wilhelmsen Ships Service
Bulgaria. Oscar Sandell, vice president for HR/OD in Wilhelmsen Ship Management adds: “This programme clarifies the expectations we are facing, and learn us to be leaders and not only managers. I feel we are in a position to make a positive impact for our business areas and the whole company.”
Q): Describe WIT role and business objective? A: The IT strategy we have for WMS forms an integral part of the WMS strategy for operational efficiencies and the purpose of the WMS IT strategy is to align IT deliveries to enable WMS and its business areas to deliver their strategic ambitions. In addition WIT has Service Level Agreements with WW Holding and WW ASA where we deliver the same services as for WMS utilizing the standard infrastructure platform we have developed and also the competence we have around application management. Q: What are the main challenges facing WIT? A: Speed of change within the IT environment creates a challenge to align with business re-
Q: How many are employed in the company? A: We are only 34 employees in WIT, but have an operational model where we can utilize partners to scale up and down and in addition we have several sourcing agreements. Q: Who are some of your external customers? A: WIT is not delivering services to any external customers, only to companies within the WW group.
Mette U. Bakke
Job title: Senior vice president IT & CIO, WMS Age: 49 Work place: WW headquarters, Norway Family: Married, two children
Q: What is a priority for the coming year? A: To complete the IFS Upgrade assessment project in order to ensure we provide sufficient information on scope, cost, risk and time for decision on IFS upgrade. IFS is the transaction engine supporting Wilhelmsen Ships Service’s core global business processes, some of Wilhelmsen Ships Equipment business processes and in addition IFS financials are used for several companies in the WW group. WWWORLD 1 2010 61
youngtalents The world as I see it 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.
Breaking the barriers
Rio de Janeiro
Our guest this time is HENRIQUE SCHLAEPFER, area director of Wilhelmsen Ships Service in South America and working out of Rio de Janeiro, Brazil.
On 8 February 2010 the two young cadets Eun-Ran Lee and Ju-Yeong Han started on a voyage which few Korean women have embarked on before them. Text: Einar Chr. Erlingsen KOREA: On that date, Eun-Ran and Ju-Yeong
(both 22) boarded EUKOR's proud vessel Morning Celesta to commence their six months on-the-job training period that is part of their four-year degree programme at Mokpo Maritime University (MMU). On that very day Wilhelmsen Ship Management (WSM) took over management of the ship, making Eun-Ran and Ju-Yeong WSM Korea's first ever female cadets, deck and engineer respectively. They came with a strong recommendation from MMU, where they have achieved very high grades during their first two years of study. Both women have some previous experience from the training ship Sae Nuri, which gave them the incitement to seek a career at sea. Master and chief. "There are a few female Korean chief officers already, but no female masters. I have decided to become chief officer first, then go on to study more navigation in the UK to obtain a UK officer qualification," says Eun-Ran Lee, who seems firmly set on realizing her dream of becoming a master. Ju-Yeong Han shares similar ambitions: "There are no female Korean chief engineers as yet. I want to change that! I believe that a female chief engineer can be just as competent as a male one," says Ju-Yeong. Lucky girls. They have been very well re-
ceived by their male colleagues on board the Morning Celesta: "I'm very happy on board, everyone has been very kind to me. I consider myself a lucky girl," says Ju-Yeong. "When I dream about my future, I see myself working at sea as a capable officer," adds Eun-Ran. "There is only one slight drawback: ships are made for men, including facilities like showers and toilets. But these are only small inconveniences which we easily can adapt to." After their six months on board, the cadets will go back to their university to complete their degree programme, after which they will join the merchant fleet as 3rd officer and 4th engineer respectively. 62 WWWORLD 1 2010
WRITING HISTORY: Ju-Yeong Han (to the left) and Eun-Ran Lee are cadets on board EUKOR's Morning Celesta. The ship is managed by Wilhelmsen Ship Management Korea.
Enthusiastic pride RIO DE JANEIRO: After closing the Q1 figures for WSS South America, I can draw some instant conclusions: ➜➜The offshore segment ignores any remaining financial crises. ➜➜There has been a significant reduction in the number of port calls, mainly as a result of the shipping lines' rationalisation of tonnage and services. ➜➜The transportation of minerals and other raw materials is regaining lost ground.
While mature markets like in North America and Europe are still struggling to overcome the 2009 impacts on the financial system, countries like Brazil, Russia, India and China (the BRIC countries) are now attracting attention and investments, due to their positions of cheap supplies not only of raw commodities, but also of cost-effective labour. As a result, the somewhat sceptical approach I addressed when I joined Wilhelmsen Ships Service in September 2009 has dissipated and been replaced by enthusiastic pride.
step ahead of most competitors. I’m not saying that the coming months will be easy. The recoveries of main economies are still fragile. Expected over-capacity, companies merging - or disappearing, restrictive environmental regulations, to name just a few challenges, will still make great demands on our ability to act on changes and innovations. Which is really no surprise. Newly launched campaigns (Ships Spares Logistics and Ships Agency Re-Defined) clearly indicate that we do know our business. A long-term commitment. Our recent investments in Chile and Northern Brazil, Santos, Rio de Janeiro and Macaé, plus increased pro-
"The offshore segment ignores any remaining financial crises"
Maintaining our vision. Our corporate vi-
sion, plus fast implementation of our strategy of re-shaping our business has been a key to guarantee the black figures we keep enjoying. Laidup vessels’ management, products’ campaigns, cruise & offshore focus, plus our personnel's impressive capacity of understanding, commitment and engagement, have brought us to a unique position to indeed drive the show. The organisation’s rapid adaptation to the changes in world trade, its willingness to succeed, and flexibility in implementing immediate solutions to attend to our customers' needs (even those they didn't know that they had) set us a long
fessionality and organisational governance are some of the actions we have taken. They give a strong signal to the market that we are serious about our vision of shaping the industry, and in our commitment to a long-term presence in South America. We have coordinated our strategy to ‘brickwall’ our existing portfolio, and have added value to the packages of services and products (WSS - WME - WSE), which only we are able to offer. As a result, we experienced considerable growth during Q1, as compared with the same quarter in 08/09. This makes this newcomer more than confident that yes, even though the world will keep on changing before some new financial balance is found, at the end of each year, I'll be here to celebrate our success with you all. WWWORLD 1 2010 63
Wilh. Wilhelmsen was established as an independent company in 1861 and will celebrate 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 firstname.lastname@example.org.
Offshore - dream and drama WW's biggest and most significant new activities in the 1970s were undoubtedly the company’s involvement in the offshore oil industry, both within oil exploration and supply ships activity. Text: Hans Chr. Bangsmoen Wilhelmsen Offshore Services (WOS), where Ships A/S Tudor (a family-controlled company) had a 50% share, and the ship broker company R.S. Platou and insurance company Storebrand with 25% each, had their first supply vessel Tender Trout delivered in 1972. This vessel was the first in a line of six fairly uncomplicated ships built in Houston, Texas, with a gross tonnage of approximately 500 tons and a 4 700 horsepower engine.
New type of ship. This was a new and hitherto unknown type of vessel to appear at sea. The ships resembled floating trucks, with the superstructure, haulage equipment and engine in the front of a wide working deck. The vessel type developed quickly and in the course of 15 years ever bigger and more advanced supply and service ships set their mark on the WW fleet. Between 1972 and 1986, WOS took delivery of 32 supply ships and advanced vessels for special operations in the oil industry. The specialized vessels were mostly built at Norwegian ship yards. The Ulstein Group became a pioneer with its UT design. WOS received ten advanced vessels from Ulstein Hatlø, with Tender Carrier as the first in 1974. WOS' activities were daring and expansive, but the company soon experienced that the demand for traditional supply assignments in the North Sea was unstable and unpredictable. WOS therefore decided to focus on specialized activities such as diving vessels, contingency ships and vessels for under-water construction and maintenance. Several ships were rebuilt to suit these activities; others had long-term charter parties for the oil companies, up to ten years. A world leader. For a time WOS had at its
disposition one of the world's largest fleets of offshore vessels. They had assignments across
64 WWWORLD 1 2010
“Floating truck”: Tender Trout was the first offshore supply vessel, delivered to Wilhelmsen Offshore Services in 1972. (Photo: WW archives)
New type: The North Sea offshore industry carried with it a demand for new and specialized ships. This is WOS’ Tender Comet after it was rebuilt into a combined pipe carrier and fire-fighting vessel. (Photo: WW archives) the globe - in the North Sea, the Mediterranean, West Africa, the US, Brazil and the Far East. Important joint agreements were made with large operators. The first was made in 1981 by the Øivind Lorentzen group in Brazil with a jointly-owned Brazilian company, Norsul Offshore SA, where WOS had a 40% share. The Norsul fleet comprised 17 vessels, all on long-term time charters for the oil company Petrobras. A similar agreement was made two years later with the American oil company Tenneco on a similar American shipping company, Argosy Marine Company. The company owned and operated 20 vessels in the Gulf of Mexico, all on long-term time charters with Tenneco. This provided WOS with access to the world's largest
market for supply vessels. With these two deals in place the fleet of supply and special vessels came up to 65 units. Exit offshore. The winter of 1985/86 saw dramatic changes in the oil market. In just a few weeks the price of crude oil was halved to USD 10-15 per barrel. This had immediate and dramatic consequences both for Tudor, which now owned 66% of WOS, and for the entire WW group. Most of WOS' activities had to be quickly wound down and most of the fleet was sold. More than 15 years of accumulated know-how within the offshore service activities came to an abrupt end as Farstad Shipping in Ålesund acquired the last eight Tender vessels in October 1988.