NO. 1 2012 25th YEAR corporate magazine for the Wilh. Wilhelmsen group
Special report Australia:
AT THE TOP DOWN UNDER
THE ‘RUNAWAY’ CAPTAIN
Business in Japan:
STILL A FORCE TO RECKON WITH
THE TIGER GIRLS
The CEO's letter
contents NO 1 2012
Published by: Wilh. Wilhelmsen Holding ASA Corporate communications NO-1324 Lysaker, Norway
Publisher: Group vice president Benedicte Gude Editor: Arild S Johannessen EDITORIAL BOARD: Naja Boone Cecilie A Heavens Einar Chr Erlingsen Kirsten Haune Benedicte Gude Arild S Johannessen Editorial contributors: Hans Chr Bangsmoen Patrcik Lobo Karl Braanaas Kaia Means Eamon Gallagher Susannah Nesmith Irem Gokmen Tommy Normann Bjørg Ekornrud Ryan Pike Einar Chr Erlingsen Joshua Prezant Karin T Erlingsen Don Pyle Arild S Johannessen Frida Elizabeth Sjoner Joanne Lan Stacey Trodal James Lauritz Marianne H Wang Design and layout: Redink AS www.redink.no Printer: RK Grafisk AS Printed on paper approved by The Swan, the official Nordic ecolabel
Meet Joanne Lan from Shanghai, who sees it as her task to prove Rudyard Kipling wrong!
12-31 SPECIAL REPORT: AUSTRALIA
Dear colleagues, friends and customers
Nowhere else is there a more complete Wilhelmsen presence than in Australia. We have taken the temperature on the country’s booming economy.
Well into 2012, the Wilhelmsen group is in good shape. First quarter provided us with historically high total income and operating profit in the shipping segment. Operating profit amounted to USD 106 million, up 84% year over year from the corresponding quarter of 2011. For Wilhelmsen Maritime Services, profit from operations (EBIT) is back on track, thanks to good financial management and the profit improvement programme.
A decision made 30 years ago changed captain Adam M Puscion’s life completely.
A NEW GENERATION
WW and partner Wallenius are preparing for a future with an expanded Panama Canal.
A pilot project on board MV Tarago aims to reduce some of the environmental issues in world shipping.
The figures tell me that we have made the right decisions in the past, and that today we have the right people in the right places. We are positioned for further economic growth.
A GOOD TRACK RECORD
A good insurance track record can be measured in real money.
At the same time we need to be cautious. We are delivering good results in a troubled world. For a lot of players in the global shipping community, these are testing times. Plummeting freight markets dampen activity, and in many segments there is a gap between tonnage capacity and cargo supply. This can rapidly affect us as well. To have the best overview, the group management team and Board of Directors are constantly reviewing our strategy – and a revised group strategy will be presented in June. Our vision of shaping the maritime industry will still be core, as well as our current business portfolio. However, strategy is also about continuously adjusting the map to the current terrain and market conditions.
THE WW SPIRIT
New group vice president HR & OD Jørn-Even Hanssen came to his job with a lot of respect for company tradition.
NOT JUST A GAME
New tools have been introduced in the training of new leaders. They come disguised as games – but definitely mean business!
CIRCULATION: 8 500 copies
The new social media can be fantastic tools, if used in the right way.
Technical Publisher: Forlaget Media AS, NO-3110 TØNSBERG, Norway
DOING BUSINESS IN JAPAN
In May, the owners of our partner Wallenius, together with their board and executive management, met their counterparts in Wilhelmsen for a two-day meeting here in Oslo. The meeting confirmed the good relations and partnership we have, as well as the benefits of doing business together. The essence of good partnerships cannot be underestimated in our industry. We all depend on each other, and taking care of your partners is a fundamental first step on all levels in the organisation.
Times have been hard for Japan lately – but the country is still a commercial giant to reckon with.
52 front cover: Naming ceremony of MV Toledo in Sydney Harbour 22 April 2005.
The importance of partnership
No order is too tall for Wilhelmsen Technical Solutions’ Fort Lauderdale warehouse.
55 PEOPLE&PLACES Read about management on their Black Sea tour, happy children and a new life for old life rafts.
In this issue of WW World, we have features from Australia, Japan, China, Korea and the USA. In addition, we will show you our latest achievements within environment and innovation, and much more. In my opinion WW World reflects the diversity of the group, and the dedicated employees we have in all parts of the world. I hope you will enjoy reading this issue.
Two female deck cadets are breaking down some gender barriers.
THE WORLD AS I SEE IT
Irem Gokmen reports on how the world looks from her base in Istanbul.
THE SADDEST DAY
Friday 8 September 1989 was the worst day ever in WW’s 150 year long history.
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Thomas Wilhelmsen Group CEO WWWORLD 1 2012 3
WW visible at Expo 2012
Energy Efficiency Competition 2012
Wilh. Wilhelmsen is one of the sponsors of the Norwegian Pavilion at the Expo 2012, taking place in Yeosu, South-Korea, mid-May to mid-August 2012. Text: Frida Sjoner Korea: The Norwegian pavilion has been greatly praised for its exciting concept which takes visitors on an interactive journey from Korea to Norway and fits the theme of the Expo exhibition "The Living Ocean and Coast" very well. CEOs Sjur Galtung (EUKOR) and Dag Schjerven (Wilhelmsen Maritime Services) attended the Norway Day celebration 12th of May together with prominent guests such as HRH Crown Prince Haakon of Norway and Norway’s Minister of Trade and Industry Trond Giske. Dag Schjerven held a very well received presentation on how the WW group embraces green shipping; “If you are not already a believer, I hope you become one, because green makes sense. It’s the only way to go,” he said. In addition to the WW group participation as sponsor to the Norwegian pavilion, EUKOR Car Carriers is one of the private sponsors to the exhibition. Sjur Galtung comments: “The World Exhibition 2012 being awarded to Yeosu and Korea is certainly a great and important achievement for this southern part of the Korean peninsula. Not only will Korea be able to showcase their highly advanced technological level to the whole world, they will also take use of this opportunity to tie technology with viable environmental marine aspects - to further improve its reputation,” he said. “The same emphasis on harmonized technology can easily be recognized in the design of the leading Korean automakers (and main sponsors of the Expo 2012): Hyundai Motors and Kia Motors. For EUKOR’s part, being a key logistics provider for these automakers, the overall theme (“The Living Ocean and Coast”) fits very well. As well as providing a tailor-made service for these manufacturers, we also have an interest in caring for our
MV Morning Marvel to WSM Korea EUKOR has awarded MV Morning Marvel (ex Patriot) to Wilhelmsen Ship Management Korea. Morning Marvel is the first Korean flagged vessel managed by WSM Korea. With this, WSM Korea is opened to the Korean market to provide third party ship management services.
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In April 2012 Wilhelmsen Ship Management reached an important milestone of having 10,000 active seafarers on its roster. Besides manning the WSM and WLCC vessels, WSM also provides crew management and crew supply for over 300 third party vessels.
Norway: Last year’s Energy Efficiency Competition
was the beginning of an annual competition run by the cross-organizational EEWG. This year’s Energy Efficiency Competition 2012 will run in a more compressed period over four weeks during the month of September. Through this competition and other initiatives, the EEWG is looking to significantly reduce fuel consumption, to address the increasing costs of bunker as well as the equally important environmental agenda. This year the competition will be open to all sea farers operating in the Wallenius Wilhelmsen Logistics fleet, all superintendents and all site offices.
Luxury cruise ship Paul Gaiguin.
Best results ever Wilh. Wilhelmsen Holding ASA delivered
top line and profit growth during this year’s first quarter, lifted by historically high total income and operating profit from the shipping segment. Operating profit amounted to USD 106 million for the first quarter of 2012, up 84% year over year from USD 58 million in the corresponding quarter of 2011. Total income increased 26% and ended at USD 946 million (USD 753 million).
Two luxury cruise ships to WSM Norway Wilhlemsen Ship Management Norway will take over management of the two luxury passenger ships Paul Gauguin and Le Levant, both owned by Paul Gauguin Cruises.
Four CEOs: Dag Schjerven (Wilhelmsen Maritime Services – to the left), Walter Qvam (Kongsberg Group), Ingar Skiaker (Høegh Autoliners), and Henrik O. Madsen (DNV Group) outside the Norwegian Expo 2012 pavillion. local maritime environments – evident through various projects both within the group and for EUKOR separately. We have therefore chosen to become sponsor of the Expo 2012 through our CSR program, which will - amongst many other things - provide nursery rooms and equipment for disabled children.
Oslo, Norway: Le Levant is of a yacht design with accommodation for 90 guests and a crew of 55. She will be renamed Tere Moana by its owners on October 1, 2012. The vessel focuses on the high-end cruise market with tailor-made cruises and destinations. The cruise ship Paul Gauguin will be taken over in August 2012. This vessel can accommodate 332 passengers with a crew of 217. It is built in 1998 and
Furthermore we also find great value in linking our brand name with the environmentally sustainable - and highly advanced - Korean technology. We believe the World Expo 2012 in Yesou will be a great window for this,” Mr. Galtung said.
underwent a total renovation in 2011. The vessel is presently operating out of Tahiti and will continue doing so under WSM management. The main focus will be cruises around the Tahitian Islands. WSM USA is already managing a luxury residence cruise vessel, The World. The cruise market is strong and expanding and is a target market for WSM.
Wilhelmsen Ships Service holds prices for 2012
Six "green" vessels
Wilhelmsen Ships Service (WSS) has announced that it will hold current list prices for the remainder of 2012 on the majority of its product portfolio. This comes as a direct response to the challenging market conditions and the company’s intention to share reduced operating costs and cost savings with its global customer base whenever possible. Thomas Smordalen, Vice President International Sales said: “The price hold ensures that our customers avoid increases at a time that is proving to be a difficult one for the whole industry. We are continuously developing our processes in order to improve our operational efficiency. In addition, we are negotiating with our suppliers to maintain value for money, whilst doing all we can as a business to keep prices predictable and competitive.”
EUKOR has been recognised by the World Port Climate Initiative and the Port of Rotterdam for its environmentally friendly operations. Out of the 25 most environmental ships calling Rotterdam in 2011, six vessels belonged to EUKOR, with the company’s car carrier MV Morning Carlo being the most environmentally adapted vessel of all calling the port last year.
Malaysia: Owners Kumiai Senpaku has decided to award another vessel to Wilhelmsen Ship Management Malaysia. MV Brilliant River was taken over by her new ship managers in June 2012. This is the fourth vessel awarded to WSM from the same owner. In April 2012, WSM Malaysia also took over management of the 6.015 unit new PCTC Mediterranean Highway, recently purchased by owners Aage Thoen AS.
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NEW VESSELS MV Tysla was named on 23 January 2012 at a ceremony in Nagasaki, Japan.
First voyage: MV Tysla is almost ready to leave the Mitsubishi ship yard where she was built.
MV Titania was named on 9 March 2012 by her lady sponsor Mrs Margaret Abela, wife of the President of the Republic of Malta. Titania is the sister vessel of MV Tiger, and she was delivered from Daewoo Shipbuilding & Marine Engineering in December 2011.
New reporting tool: Maritime trainee Anders Lenning (to the left), shipping and environment manager Petter Joenvik and vessel manager Paal Berg Lande have been part of the team that has developed the new Performance Monitoring Analysis tool to be used onboard the WW vessels. (Photo: Arild S Johannessen).
The vessel is the 5th vessel flying the Maltese flag, and she is owned by Wilhelmsen Lines Shipowning Malta. This is the first time in the Wilhelmsen history that a naming ceremony has taken place in Malta. As the vessel turned inside the Grand Harbour and made her way out to sea, she passed the Upper Barrakka Gardens where she was saluted by a 7 canon salute, wishing her all the best sailing the seven seas.
Improved vessel reporting system This year all WW owned vessels will be equipped with a new reporting tool that will dramatically improve data quality reported from our vessels and thereby potentially improve vessel operation. Oslo, Norway: Name of the game is PMA (Performance Monitoring and Analysis). Also used by partner Wallenius Lines, and now integrated into the main monitoring system of Wilhelmsen Ship Management, Salesforce. WW World has met three busy gentlemen who all have been involved in the development process. “With PMA we will be able to monitor fuel and lube oil consumption, as well as CO2, SOx and NOx emissions from our vessel operations. All data reported will give us a much higher accuracy of emissions generated. Which in turn is an essential tool for being more environmentally aware,” says Petter Joenvik, shipping and environment manager in Wilh. Wilhelmsen ASA.
Tool for benchmarking. PMA makes it possible to benchmark vessels against each other. Since both
Lady sponsor was Pernille Wilhelmsen, wife of Thomas Wilhelmsen, group CEO of Wilh. Wilhelmsen Holding ASA. MV Tysla is the sister vessel of MV Tønsberg which was delivered from Mitsubishi Heavy Industries' Nagasaki shipyard in March 2011, and the third of four sister vessels of the Mark V ro-ro class. The other two vessels have been ordered by Wallenius Lines. The vessel will be deployed in the Wallenius Wilhelmsen Logistics' fleet and Captain Jacobsen and her crew took her out of the shipyard on 26 January and set course for her first cargo loading in Ulsan.
owners are using the new reporting tool, it will also be easier to address operational challenges from the ship-operating companies and to transfer best practice. “For the first time we are able to provide the same consistent data with a complete overview for the whole group. If PMA helps us save 1% fuel, that is equivalent to USD 150 000 per vessel per year,” adds maritime trainee Anders Lenning. The prototype of the new reporting tool was installed onboard MV Tirranna, Tijuca and Tombarra last summer, and has been continuously modified to achieve best possible result before the big launch. But does this mean more work for the Master and the others onboard?
More vessels. Two more newbuildings are scheduled for delivery to the WW group this year: hull no. 2263 was delivered from Hyundai Heavy Industries in mid-June and hull no. 2284 from Mitsubishu Heavy Industries in September.
On her way: MV Titania photographed as she is leaving the Port of Valetta after the name giving ceremony.
Less double reporting. “In several cases to the contrary, with PMA we actually reduce double reporting. For us in ship management, PMA will also assist us in identifying short- and long term trends in the way we run our ships, and will also give our vessel designers a lot of valuable input when designing the new generation vessels for the group,” says vessel manager Paal Berg Lande in Wilhelmsen Ship Management.
Large offshore contract for WTS Wilhelmsen Technical Solutions and Daewoo Shipbuilding & Marine Engineering (DSME) have
signed a contract to deliver the Heating Ventilation and Air Conditioning (HVAC) system to a new drilling rig owned by Odfjell, and being built in Korea. Over a period of several years, a number of engineers and support personal from Norway and Korea will be involved in addition to suppliers worldwide. “This is a dream project for us in terms of showing what we are capable of. I am confident that we can perform and deliver to both DSME’s and Odfjell’s expectations,” says Reidar Saether, Project manager WTS HVAC Offshore.
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Sponsor and owner: Pernille and Thomas Wilhelmsen on board MV Tysla in Nagasaki.
Lady sponsor: Mrs. Margaret Abela, wife of the President of The Republic of Malta wishes MV Titania ‘bon voyage’. Mr. Wilhelm Wilhelmsen to the left. WWWORLD 1 2012 7
Joint safety offer for better customer benefits
WWH enters into offshore through new acquisition
Wilhelmsen Technical Solutions (WTS) and Wilhelmsen Ships Service (WSS) join forces to promote their united safety offer to customers in the spirit “together we are stronger”. Vestbase. Photo: Harald M Valderhaug
About the investment ➜➜The new investment is legally
owned by Wilh. Wilhelmsen Holding Invest AS, a 100% owned subsidiary of Wilh. Wilhelmsen Holding ASA. The total investment will be approximately USD 80 million. ➜➜WWH will be the largest shareholder in the NorSea Group, and we have a first right of refusal to increase to 40% ownership. Eidesvik Eiendomsinvest AS and Simon Møkster Eiendom AS will continue as main shareholders in the NorSea Group, each with approximately 30% ownership. ➜➜Completion of the transaction is expected to take place end of June/beginning of July 2012. Joining forces: ”By working together we can make a difference for our safety business,” says Thomas Smordalen (left) in Wilhelmsen Ships Service and Mark Germain from Wilhelmsen Technical Solutions. (Photo: Bente Lund-Larsen) “This combined safety offer from WTS
and WSS is a good example of how our customers can benefit from cross-synergies between business areas in Wilhelmsen Maritime Services (WMS),” says president and CEO Dag Schjerven in WMS. The main objective for the initiative is to put focus on the safety business, establish better cooperation between Wilhelmsen Ship Service and Wilhelmsen Technical Solutions and ultimately deliver a better safety package to customers. Mark Germain, VP Sales, Wilhelmsen Technical Solutions, comments: “By working together, WTS and WSS are able to provide our customers with safety systems, products, services and maintenance for the lifetime of their vessels. The strength of the Unitor brand, our combined expertise and the breadth of our global service network makes this a safe investment.” The combination of high quality Unitor products and an extensive service network 8 WWWORLD 1 2012
means WSS and WTS can supply, install, inspect and service safety installations to the same high standard across the globe. Thomas Smordalen, vice president sales, Wilhelmsen Ship Service, comments: “The competition is tough in today’s safety market. To secure sales, we need to communicate and cooperate across company lines for the benefit of our customers. With systems, products, services and maintenance from WTS and WSS we can offer them a safe investment”. To support the WSS and WTS sales forces in taking this message to the market, the project team has developed a set of marketing and sales tools. Representatives from the safety business streams, marketing and sales management in both organisations have been involved to ensure alignment between the joint safety offer and existing marketing. The joint campaign had lift-off 31 May. For more information go to www.wilhelmsen.com/safeinvestment.
About the NorSea Group ➜➜NorSea Group is a leading provider
of supply bases and integrated logistics solutions to the Norwegian offshore industry. Through its fully and partly owned entities the group operates ten strategically located supply bases along the coast of Norway, including NorSea (two supply bases in the Stavanger area), Stordbase (Stord), Coast Center Base (Bergen), Vestbase (Kristiansund), Helgelandsbase (Sandnessjøen) and Polarbase (Hammerfest). ➜➜In 2011, NorSea Group had a total income of USD 415 million and a net result after tax and minorities of USD 21 million. Total book assets as of 31 December 2011, was USD 500 million, with the largest items being investments in properties and related companies.
Wilh. Wilhelmsen Holding has signed an agreement to acquire 35.4% of the shares in the NorSea Group AS, a leading provider of supply bases and integrated logistics solutions to the Norwegian offshore industry. Text: Benedicte Gude The investment follows
our previously announced strategy aiming at exploring new opportunities within the energy-, offshore- and maritime industry, supplementing the activities in Wilh. Wilhelmsen ASA and Wilhelmsen Maritimes Services (WMS),” says Nils P Dyvik, group CFO in WWH. “We look forward to creating a global shaper of supply base offshore and logistics solutions together with our new partners.” Opportunities and value creation.
NorSea Group’s prime focus is presently the Norwegian offshore sector. Through its fully and partly owned entities the group operates ten strategically located supply bases along the coast of Norway. While the investment is made on a standalone basis, there is future synergies potential between NorSea Group and WMS related to products and services towards the offshore fleet. “While the strong development within the Norwegian continental shelf is expected to continue, NorSea Group sees opportunities abroad. We aim at supporting NorSea Group in this development, drawing on our global maritime network of people, expertise, related companies and partners. In addition to supporting the international business development through our extensive global network, we can collaborate on deep-sea cargo projects to the offshore market,” says Dyvik. NorSea Group may also facilitate growth for Wilhelmsen Ships Service (WSS). The recently launched global offshore project in WSS can
ENTERING OFFSHORE: Group CEO Thomas Wilhelmsen (left) at NorSea Groups main service base in Tananger together with Kolbein Rege, Anne Jorunn Møkster and John Stangeland. Photo: Tommy Ellingsen benefit from NorSea Group through access to offshore ports which may generate sale of chemicals and safety products. Wilhelmsen Technical Solutions (WTS) can also be a sub supplier of maintenance and repair services to the NorSea Group through WTS’ safety El-automation, HVAC and NOx Care offers. WTS has already secured a contract to change all the main systems in the HVAC fan room for accommodation onboard the rig Songa Delta. The upgrade will take place a Coast Center Base, one of NorSea’s bases in Norway.
Commenting on the new shareholder, John E. Stangeland, CEO at NorSea Group says: “We are very excited about having WWH onboard as a new shareholder. We hold a long and strong record servicing the high demanding oil and gas market customers on the Norwegian continental shelf, whereas you have proven highly successful in a global maritime business world. This combination should cater for an effective alliance. We are all looking forward to team up and start working with all of you.”
WWWORLD 1 2012 9
10 questions: JOANNE LAN
Interpreting cultural differences ‘East is East and West is West, and never the twain shall meet’ wrote Rudyard Kipling. One of Joanne Lan’s most important tasks is to prove him wrong! Text: Einar Chr Erlingsen Shanghai, China: Regional marketing man-
ager Region Asia Pacific in Wilhelmsen Ships Service (WSS) Joanne Lan (33) is living proof that different cultures can not only co-exist very well, but even benefit from each others strengths. Born in China, Joanne has spent seven years of her life in Australia, where she graduated from The Royal Melbourne Institute of Technology with a bachelor degree in business administration. Historically, WSS has had all its marketing and communication at head office. Your role as regional market manager was first established last year. Can you tell us a little about it?
The main objective of my role is to further extend the brand awareness in different countries in Asia Pacific through coordinated marketing activities such as exhibitions, customer events, but also PR and internal communications. Due to different language barriers in this region, it is sometimes challenging to reach our customers in countries where English is not the mother tongue. As a result, my role is to understand the cultural differences and their preferred way of receiving information and communicating with them in the most effective and efficient way possible. WSS’ 4500 employees operate in 2500 ports and 125 countries around the world, so internal communication is just as important as external. I work with general managers and area directors to source internal news across the regional offices and inform the global WSS network by emails, intranet news, reports and 10 WWWORLD 1 2012
face-to-face communication. In addition, my role also liaises closely with our international marketing department in Oslo to align the marketing efforts and act as a communication channel service both ways. Q: Having studied in Australia and working with a
Norwegian company since 2006, has this in any way changed your way of thinking?
tions in today’s business world in Asia. All of this has helped me grow as a female executive.
➜➜Born: Shanghai, China 1978
Q: There are quite a number of female managers in
➜➜Education: Bachelor degree from The Royal
WSS in China. Any particular reason for this?
Melbourne Institute of Technology ➜➜Previous jobs outside WW group: From IT/ recruitment companies with a mixed background of administration, finance and marketing ➜➜Previous jobs within WW group: Marketing assistant Wilhelmsen Ships Equipment (2006), later promoted to marketing officer. ➜➜Joanne Lan started in her present position on 1 April 2011 ➜➜Favourite pastimes: travelling and running a volunteer team for helping homeless animals in Shanghai Q: What should one definitely not do when dealing
with China? A: Chinese people are relationship-oriented.
If you want to do business with Chinese, you should find a way to build the relationship first. Do this by being open, flexible, and realistic. Once you earn their respect, it’s a “smooth ride”. Q: How could other parts of the WW group of
A: Melbourne is an international city with a
mixture of cultures. I often worked with people from very different backgrounds and cultures to deliver a project. During those years, I learned to appreciate cultural differences. Each individual had their own advantages and weaknesses. The key is to understand the reasons behind people’s thinking and behaviour, be flexible when working with others and to treat everybody fairly. Although WW is a Norwegian based company, the company culture is very diverse. I think my previous experience from living abroad definitely has had an important influence on me. When working in such an international environment, you have to be flexible! Q: Cultural differences in an international company
like WW, are they a problem or an asset? A: Culture forges values and beliefs that define
one’s thinking and behaviour. Different culture means different ways of thinking which can fuel innovation if managed correctly. The way I see it is that with corporate values such as teaming and collaboration, learning and innovation, cultural diversity is definitely embraced in the WW group as an asset.
companies benefit from your local knowledge? A: Among marketing departments in compa-
nies under Wilhelmsen Maritime Services, we often share resources and information with each other. A recent example: I went to an exhibition in Japan last month and spoke to a local magazine. During our conversation with the editor, she expressed they were looking for interviewing a ship management company and I instantly recommended Wilhelmsen Ship Management. We also support the WW Communication department whenever there is a need for a photo shoot or any type of information needed from our region. The main benefit is that we strengthen the information flow both ways between head quarters and Asia Pac. There is more exchange of best practise, tools and insight which helps all of us to do a better job.
A: I have to be honest that I have never paid
attention to this until you asked. It’s true! We do have quite a few female managers in WSS in China. According to a study done in 2011, about two-thirds of Chinese women describe themselves as very ambitious, compared with just one-third of college-educated women in the US. About 19% of Chinese females who are in managerial positions hold the title of CEO, ranking second among 39 countries. The drive is evident! On the other hand, some organizations welcome gender diversity and encourage the inclusion of both sexes when recruiting. I think WW is one of them. Q: What can you say about WSS’ position in
Shanghai – and in your region? A: Over the years, WSS has come a long way in
Region Asia Pacific. Our sales have increased by average 15% every year for the past few years. And they are still growing as we speak. Countries like China, Korea and Japan have a lot of potential and this is why we are further establishing our infrastructures and developing competencies in these countries to prepare for the future. Our company brand is well established in most countries in Asia Pac. Due to the language barrier, China, Korea and Japan can be further developed and this is exactly what I am working on in my current position. Q: Your best advice for achieving further growth for
WSS in your region - what would that be? A: We should continue to expand in the fast
growing countries and be present where our customers are. At the same time, we need to invest in competence development and resources development to sustain the quality level of the products and services we deliver.
Q: You are a woman with an important position in
Q: What are your plans for the future?
a predominantly male culture. Does this influence your job?
A: I am expecting my first child in a few
A: Over the years, I have developed my profes-
sional skills and feel confident in my abilities and contribution to the team. Also, there are more and more women taking important posi-
months time. I am very excited to enter this new stage of my life. There are so many role models in our company that demonstrate that women can be successful in both their career and family life and I want to be one of them!
WWWORLD 1 2012 11
Special report AUSTRALIA
Economy in Australia ➜➜The economy of Australia is one of
the most developed, modern market economies in the world, with a GDP (gross domestic product) of approximately US$1.6 trillion. Australia's total wealth is 6.4 trillion dollars.
19th largest exporter ➜➜In 2011, it was the 13th largest national economy
by nominal GDP, representing about 1.7% of the World economy. Australia was also ranked the 19th largest importer and 19th largest exporter. ➜➜Australia has eight times more adults earning over $100 000 than the worldwide average. In 2011 the average middle aged adult had a net worth of over $350 000, making Australians per capita some of the wealthiest people in the world. ➜➜Economic growth is largely dependent on the mining sector, representing a total of 19% of GDP. ➜➜The IMF in April 2012 predicted that Australia would be the best performing major advanced economy in the world over the next two years, the Australian Government Department of the Treasury anticipated "forecast growth of 3.0 per cent in 2012 and 3.5 per cent in 2013". (Source: Wikipedia)
Australia in brief ➜➜Australia, officially the Commonwealth of Australia, is a country in the Southern
Hemisphere comprising the mainland of the Australian continent as well as the island of Tasmania and numerous smaller islands in the Indian and Pacific Oceans. ➜➜It is the world's sixth-largest country by total area. ➜➜The federation comprises six states and several territories.
22.9 million ➜➜The population of 22.9 million is heavily
concentrated in the Eastern states and is highly urbanized.
Australia shares a 117 long year history with the Wilhelmsen group, all the way back to 1895 when the first WW vessel Tiger entered Sydney harbour. In this special report we explore an important market for WW, and discover a continent where several important concepts for the group have seen the light of day. And the time is right; Australia is currently experiencing a resource boom from mining and the oil and gas industry that makes the continent an economic powerhouse. Text: Arild S. Johannessen Photos: Ryan Pike, Eamon Gallagher, Patrick Lobo, James Lauritz and Arild S. Johannessen
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WWWORLD 2 2011 13
Special report AUSTRALIA
Man at the top down under In the Wilhelmsen group, Peter Dexter is Mr. Australia. With 28 years of service for WW, Peter is today an influential board member or Chair of the Board in all Wilhelmsen companies "down under". This gives him a unique position to coordinate, find synergies and further develop the footprint of the Wilhelmsen group in an expanding and important market. Text: Arild S. Johannessen Photo: Ryan Pike
idney: Peter Dexter’s positions are diverse and distinguished: honorary consul general for Norway in New South Wales. Former area director for Wallenius Wilhelmsen Logistics in Oceania. Presently non- executive chairman of WWL Oceania, non-executive director at the board of Qube Logistics (where Wilh. Wilhelmsen Holding is the second largest shareholder), chairman of the board of Wilhelmsen Investments, and non-executive director at the board of Wilhelmsen Ships Service. He is also Chairman of the board at the Australian National Maritime Museum in Sydney and holds a number of other external non executive directorships. But how did it all start? “I was recruited by Sjur Galtung as general manager for ScanCarriers back in 1983, taking my position early in 1984. As the years went by, I have been fortunate to work in different positions as the WW group expanded its presence in Australia. I’ve also enjoyed working with so many competent people in the group, both executives and colleagues all over Australia.
S Peter Dexter: “When we look at the resources and the competence represented in our companies, we have fantastic opportunities here in Oceania.” 14 WWWORLD 1 2012
The identification of the Wilhelmsen family and New Zealand have also been a test bed with Australia has clearly been significant to for new concepts that later have been incorpoall people that work for WW in this country,” rated in the group’s global operations. says Peter when we meet him at Wallenius Peter explains: “ScanCarriers was an early Wilhelmsen Logistics regional head office in innovator towards the agricultural industry. Sydney. In the 1970 and 80’s the company developed The 68-year old is the incarnation of a new techniques for transporting wool on gentleman, with a melbolsters, we were low voice and impeccable in the ship”The future should pioneers manners. As WW’s top ment of onions out be just as bright, of Tasmania, and man in Australia, he represents the current leg of a or even brighter, we were pioneers in transporting fruit history that spans back to than the past.” from remote ports 1895. That was when the on liner vessels. It’s first WW vessel, the steam ship Tiger, made her voyage from Norway to remarkable how WW has continued to be an load cargo in Australia. Onboard that vessel innovator to this day, with WWL transporting was also the 23 year old Wilhelm Wilhelmsen, very sophisticated high and heavy machinery sailing as first mate. That was the start of a to the mining industry, supported by WSS now 107 year long relationship between the as ship agents for the same industry and company, the Wilhelmsen family and the vast Wilhelmsen Investments heavily involved in continent down under. the offshore oil and gas industry. The investment in Qube allows us to integrate further Early pioneers. Not only has Australia been into the supply chain.” a very important market for Wilhelmsen for decades. As an isolated market totally dependSynergies and growth. During our converent on shipping to transport merchandise and sation, it becomes obvious that Mr. Australia products for exports and imports, Australia still is impatient on behalf of the group. As a WWWORLD 1 2012 15
Special report AUSTRALIA and it has to be served by shipping. The maritime industry has been important to this country since the inception, and it will always be so for both import and export of products. The biggest bottleneck is the supply of capital. We need investments in ports and infrastructure and investments for the mines and the oil and gas industry to expand. We need more foreign investors, and more partnerships between both regional and central governments and the industries. In this sense, I see opportunities for further Wilhelmsen investment in Australia.”
ON CALL: Two days after WW World’s visit, the large car and truck carrier MV Tirranna visited the port of Fremantle. Tirranna was delivered from Daewoo Shipbuilding & Marine Engineering in June 2009, and was specially designed for the worldwide transportation of cars, high and heavy cargo and to some extent breakbulk cargoes. (Photo: Patrick Lobo)
Four pillars theory. The four entities
Peter Dexter: “When we look at the resources and the competence represented in our companies, we have fantastic opportunities here in Oceania.”
”Australia is an island, and it has to be served by shipping.”
The WW liners has been a familiar sight in the major ports of Australia for more than a century. Here is MV Themis at Sydney Harbour Bridge, probably in the 1950’ies. pivotal point in all operations, Peter says there have been a lot of synergies made, but he still sees unleashed potential. “If we go back in history, Wilhelmsen Lines and ScanCarriers used to service many of the outports of Australia. Today there are massive investments in the resources sector, mainly in Queensland and Western Australia. As I see it, we have a large window of opportunity to play a leading role as service providers to those areas and to an even greater extent to the resources industry. I will certainly do my 16 WWWORLD 1 2012
part to move us in that direction.” Anyone who studies the Australian economy and market place, will soon bump into the phrase “Two-tier economy.” The traditional major manufacturing businesses located in New South Wales and Victoria, with Sydney and Melbourne as large hubs, lose ground to oil and gas exploration and mining in North-Western Australia and Queensland. With short distances to the emerging markets in China, India and the rest of Asia – Australia is a major supplier of
natural resources. According to Wikipedia, the state of Western Australia alone provided in 2011 46% of Australia's exports. If Western Australia were a separate country, it would be among the Top 50 economies in the world by GDP. Peter Dexter sees a lot of opportunities in this resource boom: “When the development phase is over, the population and cities in these regions will have to grow and services have to be extended. My dream is to see us have direct services to these areas like we had to other regional ports in the past. By doing this we can also capitalize on the growth in Asia and have direct routes to these important markets, providing significant economies for our major customers. The future should be just as bright, or even brighter, than in the past.” Asked if there are any bottlenecks ahead, Mr. Dexter elaborates: “Australia is an island,
owned or partly owned in Australia are Wallenius Wilhelmsen Logistics (WWL), Wilhelmsen Ships Service (WSS), Wilhelmsen Investments (owned by the Wilhelmsen family’s holding company Skips AS Tudor) and Qube (Wilhelmsen Holding is the third largest shareholder). Looking at these entities as a joint offering, Peter Dexter calls it ‘The four pillars theory’. “When we look at the resources and the competence represented in these four entities, we have fantastic opportunities. Wilhelmsen has always been an innovator, both in terms of ocean transport, the shipping services we offer, and our ship agency. As we continue to grow our range of services I am confident that our joint footprint will increase. Our investments have been historically well rewarded, and I expect the future investments to be just as good.” Test-bed Australia. Several of the
major concepts that today are a trademark of the Wilhelmsen group were first developed in Australia. “Most of WWL’s and WSS’ global customers are also operating in Australia. That has given us the opportunity to experiment and innovate together with those companies. Some of the things that we have developed here have been adapted on a global level. Take for example the high and heavy servicing that we developed together with Case New Holland and Mercedes Benz for their truck range. Our factory-to-dealer concept for cars was developed together with BMW. The ship agency hub concept was developed here together with Shell. We are proud that they have become templates on how to conduct operations elsewhere in the world,” says Peter Dexter. Australian, innovator, businessman – and the core of WW in Oceania.
Wallenius Wilhelmsen Logistics:
The Port Captain Patrick Lobo (48) is a seasoned veteran in WW, and was of the first generation of Indians who rose to the rank of Captain in the WW fleet. Currently he is taking care of business as WWL’s representative in the port of Fremantle, Western Australia. REMANTLE: Patrick has been manager
port operations in Fremantle since 2009; previously he was port captain in Auckland, New Zealand for seven years. He started out as 3rd mate onboard MV Tampa, and during his 15 years tenure at sea rose to be captain of the PCTC MV Takara. “It's busy times, currently we have 10 to 12 port calls per month of the WWL vessels in the round-the world trade here in Fremantle. My job is to be the company’s representative regarding the port, and make sure we have room to store the cargo that is being unloaded. In a busy port like Fremantle that can sometimes be a challenge,” says Patrick Lobo. His wife and two children are also residents of Fremantle, a beautiful small town just 30 minutes away from the regional capital Perth. “One of the reasons why I have stayed with the Wilhelmsen group for more than 25 years is the fact that the employer cares for your family as well. We all enjoy life here in Western Australia,” says Patrick, who has become an Australian citizen. The booming resources industry in Western Australia is the main reason for increased volumes in the ports. With WWL’s capacity for
PATRICK LOBO: manager port operations in Fremantle.
shipping high and heavy cargo, the roll-on/ roll-off vessels are extremely suited to meeting industry demand. When WW World visited the port of Fremantle, even a fire fighting helicopter had been transported to the region by WWL. “My impression is that WWL is regarded as a premium brand in Australia, with our ability to transport heavy cargo and our frequent sailing patterns to the ports of Auckland, Brisbane, Port Kembla, Melbourne and Fremantle. The commercial work is being done in Sydney and Melbourne, my job is to make sure that we deliver what we have promised. I really love my work,” says the former sea captain Patrick Lobo. WWWORLD 1 2012 17
Special report AUSTRALIA
Wallenius Wilhelmsen Logistics:
New man at the helm Rob Lord is the new regional director for Wallenius Wilhelmsen Logistics (WWL) in Oceania, an expanding market for both cars and high and heavy cargo. Port Adelaide is the latest addition to WWL’s extensive network.
The changemakers Wallenius Wilhelmsen Logistics (WWL) has four Equipment Processing Centres (EPC’s) in Australia. One of them is in Laverton, 15 km from the port of Melbourne.
YDNEY: The New Zealand born 54-
year old has a management history in both resources and heavy industrial manufacturing including a 19 year long stint in the pulp and paper industry, which included a position as regional director for the Norwegian company Norske Skog in Oceania. He took over as head of WWL’s Oceania operations in March 2012, and is very optimistic on behalf of his new company: “Our key drivers are resources, agriculture and automotive. We have for some time seen an increased demand in the market place for Adelaide, both from North America and Europe, mainly driven by large mining projects. We have had several inducement calls over the years and to support this continued customer demand we have now established a fixed port call,” comments Rob Lord. The first WWL vessel to call Adelaide was on May 5th this year. The company already operates regular calls to Brisbane, Port Kembla, Melbourne and Fremantle in Australia as well as to Auckland in New Zealand. Approximately 185 people work for WWL in Australia and New Zealand, across commercial, technical services, trade and operations plus support functions. The heavy cargo specialist. The ocean
service is operated with WWL’s flexible and modern fleet of RoRo and PCTC/LCTC vessels, adapted to carry a mix of cars, rolling equipment and break bulk. Together with the extended ocean service, WWL offers a network of technical services capabilities in Oceania, including inland distribution and end-to-end supply chain management. Annually more than 100 000 cars, agricultural equipment, and industrial vehicles are transported from ports to technical service centres and onward to dealers all around the country. “Wallenius Wilhelmsen Logistics has a very strong and established position in Oceania, especially in the high and heavy segment. We are a serious logistics provider to both automotive, agriculture and the resources sector, 18 WWWORLD 1 2012
Area director Rob Lord sees great potential for WWL in Oceania. (Photo: Ryan Pike) and my job is to develop that offering even further,” says Mr. Lord. Smack in the middle. Asked about key driv-
ers and future prospects for WWL, Rob Lord describes WWL’s position as being smack in the middle: “We have a high degree of professionalism in our company, and long standing relationships with our major customers. We also have the most advanced network, both in the number of calls to Australian ports and our factory-to-dealer concept. Our vessels are also high quality assets. We offer nine to twelve vessels calling the major ports monthly, and no competitor can match that.” Still, the new Head of Oceania has further ambitions: “I certainly think we can develop our product offering to the resources sector. We have comprehensive knowledge of the automotive and agricultural sectors, but we still have a potential in the mining industry. It’s an industry with a prosperous future, and we will take a larger position in their transport chain. I also think we can develop our technical services even further. We have seasonal challenges and I will focus on this segment in the next months,” says Rob Lord in Wallenius Wilhelmsen in Oceania.
Huge market: “Australia is a major import market for heavy equipment to be used in the agricultural, mining, oil and gas industries. Our mission here at Laverton (and in Oceania) is to be part of that key supply chain to these vital sectors of the Australian economy,” says Mark Guscott (left). Here with a colleague in the 8500 sqm workshop.
WWWORLD 1 2012 19
Special report AUSTRALIA
elbourne: WWL Laverton
is the largest EPC in Australia, with a site size of 105 000 sqm. The workshop alone is 8 500 sqm, with a 20 tonnes overhead crane and its own service pits. The facility can provide outdoor storage for up to 4 200 units. We met Kim E Buoy, VP for technical services, and Mark Guscott, VP commercial. They oversee a team of 60 highly skilled employees that perform a wide category of services, including:
Spotless: Even heavy tractors need to be spotless before they are shipped to the end customers. At WWL Laverton they paint, modify and add accessories to all sorts of vehicles.
➜➜Product preparation for the local mar-
ket, incl. bonded storage and quarantine washing ➜➜Post production quality inspection ➜➜Fault diagnosis and repairs (paint and mechanical) ➜➜Storage and inventory management ➜➜Distribution and container un-pack services ➜➜Commercial sales & marketing ➜➜Supply Chain Management “At Laverton and our Technical Services sites throughout Australia we deliver everything from full assembly of so called ‘knocked-down vehicles’ that arrive in parts packed in containers, to storage, mechanical repairs, wash and paint jobs. Our commercial differentiator is to be super-flexible in terms of meeting customers’ demands as well as delivering a superior service within our niche of High & Heavy and farming machines. If a customer wants any kind of modification on their machinery, we can deliver it. We offer high quality and high frequency,” says Kim Buoy on our guided tour with him and Mark Guscott. It is an impressive site, clean and spacious, with vehicles and construction machinery in different stations for various degrees of assembly or modification. “The factory-to-dealer vision quickly gained traction in Australia. In addition to ocean transport, our customers wanted processing plants for local market modification and inland transportation to dealers. For a number of global Supply Chain Management contracts, Australia proved to be a perfect test market for these services, which are offered on a global basis,” says Mark Guscott, vice president commercial. WWL processes approximately a total of 15 000 units annually at their EPC’s in Laverton, Port Kembla, Brisbane and Perth. 20 WWWORLD 1 2012
Inspection on site: Kim Buoy, vice president technical services (left) and Mark Guscott, VP commercial inspect some of the large trucks that are processed and ready for the Australian market.
Final preparation: Large trucks are among the many types of heavy equipment serviced at the Laverton site. All photos: Eamon Gallagher
WWWORLD 1 2012 21
Special report AUSTRALIA
We have more opportunities than challenges”
SHIP AGENT: Robert Gilchrist enjoys life and work in Port Hedland, the world’s largest port for export of iron ore.
Oceania’s area director Michael Buchanan is in charge of all operations for Wilhelmsen Ships Service in Australia and New Zealand. He is optimistic about the future.
ELBOURNE: Wilhelmsen Ships Service (WSS) is present in 22 offices all over Oceania, covering all major and minor ports on the continent. The workforce is approximately 130 in Australia and New Zealand. WSS also covers Papua New Guinea and the Pacific Islands through the use of sub agents. “Our revenue is solid, and we are experiencing growth. But every day you have to take care of customers’ needs, there are no laurels to rest on,” says Michael, who has been working in shipping his whole life and has risen in the ranks in WSS through a 25 year career in Wilhelmsen. Ship agency has always been the largest part of WSS operations in Australia, but since the merger with Unitor in 2005, the sale of marine chemicals, marine- and safety products have taken a fair share. “We have expanded the business with our product offering. Both 2010 and 2011 were very solid years, and 2012 is looking promising. My largest challenge in this two-tiered economy is keeping the right people with the right competence. The Wilhelmsen brand is strong in the shipping industry. And we do compensate by offering challenging positions and good working conditions.”
A young aspiring professional
Investments. “We work closely together, also as each other’s customers. Wilhelmsen Investments is our logistics provider, and we do all husbandry and shipping agency for WWL. Every time we open a new location, or WWL adds a
Meet Robert Gilchrist (25) from Sydney. The former member of the WSS Sydney Finance Team has swapped his white-collar shirt for steel capped boots, as ship agent for Wilhelmsen Ships Service in one of Australia’s largest boom towns. For money, for fun and for valuable working experience.
”Both 2010 and 2011 were very solid years and 2012 is looking promising.”
CLOSE COOPERATION. Like other managers WW World has met in Australia, Mike Buchanan emphasises the cooperation between Wilhelmsen Ships Service, Wallenius Wilhelmsen Logistics and Wilhelmsen 22 WWWORLD 1 2012
ORT HEDLAND: Being a ship agent is
a busy life. Vessels call or depart port at all times, every day of the week. When WW World visits the WSS office in Port Hedland, only three of the eight agents are present. The others are on assignment or on leave. But Robert is a good example of what is called the fluoro-collar workers in Australia. Driven by the mining- and oil & gas industries, those with traditionally lower-paid physical jobs are earning six figure salaries, with manual workers dominating six of Australia’s top 10 highest-paid industries. No wonder people from all professions are seeking new jobs in outposts like Port Hedland. And Robert is no exception.
new port, we all benefit. We have regular joint business review meetings, and I can certainly say that the relationship has grown stronger in the last years.” ENTERING NEW MARKETS. Michael Buchanan
and his management team are continuously looking for new emerging markets, especially from the resource and energy industry. “We’ve started external safety training courses for personnel working with the transportation of LNG. We can also offer E-learning sessions. Another segment is the cruise industry, which has grown considerably. Here we benefit from all the experience WSS Americas has with this industry, leveraging network synergies. Using all our competence within the group, combining them with our values, and we are well positioned for further growth in Australia,” says Michael Buchanan.
FROM OFFICE TO PORT. “I’ve worked in WSS
MANAGING DIRECTOR: Michael Buchanan in Wilhelmsen Ships Service Australia.
for five years, the first four years in the financial department in Sydney, and now 18 months here in Port Hedland. And I love it. We are eight guys in the office, and handle on average 60-70 port calls per month. Record is 73. Mostly iron ore carriers, operated by the major resource companies. It’s a very operational and rewarding profession, and I am gaining a lot of
experience,” says the young man from Sydney. LARGEST AGENT. Wilhelmsen Ships Service is
the largest ship agent in Port Hedland, located 1650 km north from Perth. The port is the world’s largest hub for export of minerals and is dominated by red soil, immense heat and heavy machinery everywhere. But what are the characteristics of a good shipping agent? “We have to be present when the vessel calls at port or disembarks. We are the liaison between the vessel, the shipper, and the port. We arrange available berths and handle all the ships documents in conjunction with the visit. In brief we are ‘the middle men of everything,’ says Robert. Housing costs in Port Hedland are sky high, but WSS offer their employees both accommodation and cars, which Robert thinks is essential for him living in the boomtown. “Other benefits are free weekends in Perth, just to get out of the bubble that Port Hedland represents. Besides it’s only two hours to Bali from here, so I am smack in the middle of things for a young, single man,” says Robert Gilchrist. WWWORLD 1 2012 23
Special report AUSTRALIA
WSS in Western Australia Head office in Fremantle, approximately 30 employees. Works mostly as ship agents 24/7, with more than 1900 port calls handled annually. Major ports are Port Hedland (700 port calls), Dampier (650 port calls) and Fremantle (450 port calls).
Surfing on the resource boom How to profit in an economic boom? Expand your business to new segments. Michael Connolly, general manager for Western Australia in Wilhelmsen Ships Service explains how to develop growth. AUSTRALIA: Close proximity to the major markets in Asia, low transport costs and high quality products have created a resource boom in Western Australia (WA). Covering an area of 2.5 million km 2, the state is the country’s largest, accounting for almost one-third of the continent. In 2011, Western Australia provided 46% of Australia's exports, largely driven by the export of iron-ore, alumina, bauxite, gold, and liquefied natural gas. WSS has all the resource majors in the state as customers.
1800 PORT CALLS. “Our main business is as ship agents, covering all the major ports in WA like Fremantle, Dampier and Port Headland, as well as out ports like Broome Exmouth, Geraldton, Bunbury, Albany and Esperance. In total, we managed more than 1800 port calls last year. Looking forward, we see that oil and gas and mining represent big opportunities for expansion. Key words are logistic competence and breakbulk cargo,” says Michael Connolly. The GM has held his position just over a year, but has more than 20 24 WWWORLD 1 2012
years of experience from the shipping industry, working with business development and logistics in several parts of the world. THE HEEREMA PROJECT. One project that symbolizes the new opportunities for WSS is cooperation with marine contractor Heerema on the North Rankin B oil and gas platform located offshore of Dampier. The AUD 5 billion North Rankin Redevelopment involved the installation of a new second platform, with gas compression facilities, low-pressure separators, utilities and accommodation. It was connected by a 100 metre bridge to the existing North Rankin A platform. During the redevelopment process, WSS had the entire agency for support vessels and logistic support for the whole projects. This included importing the Hermod (a semi submersible crane vessel) Lewek Crusader (a heavy lifting/flex lay vessel) five barges and seven anchor handling / support vessels. In addition, the team managed 145 port calls and
General manager Michael Connolly at the waterfront in Fremantle, just outside the regional head office “Wilhelmsen House”. Jodie Morgan and her team from Wilhelmsen Ships Service on an inspection at the North Rankin B oil platform, located offshore of Dampier in Western Australia
three visits on site (offshore) from August 2011 – May 2012. “I am very proud of what Jodie Morgan and her team have accomplished in the preparation and execution of this milestone for WSS in Australia. WSS is leading the way to a new
”WSS is leading the way to a new age for shipping agencies.” age for shipping agencies, working side by side with Heerema and overcoming obstacles in port and offshore. We have never seen a project of this magnitude, and we do hope this is a key into the large oil and gas market in Western Australia. The resource boom has just started, and we are in a good position,” says Michael Connolly. In addition, WSS in Western Australia grow as a Unitor product provider. The last 12 months more than 1200 orders to more than 300 vessels were delivered. WWWORLD 1 2012 25
Special report AUSTRALIA
Wilh. Wilhelmsen Investments (WWI)
➜➜With a heritage in maritime and associated services, WWI today offers support services to oil & gas, mining,
A friend of Norway in Fremantle The Lynn family and the Wilhelmsen family have done business together since 1927. No wonder general manager Robert Lynn in Wiltrading feels a strong connection to Norway, also as honorary consul for the country in Western Australia.
was ship agency for the WW vessels calling at Australian ports. During these 85 years we have developed a very special connection between our two families,” says Robert Lynn, or Rob as he is mostly called ‘down under’. As Norwegian honorary consul in the large state of Western Australia, and with several visits to Norway, Rob sees a lot of similarities between the two countries and their inhabitants. “Most of our consular services are for the maritime and oil and gas industries. We also process visas and passport applications for Norway, and in recent years an increasing number of Australians want to visit Norway. There is an easy match between Norwegians and Australians. Both are right-forward people with a ‘can-do’ attitude. We share the same love of outdoor life, and have a sense of humour that is quite similar. And both countries have a skilled workforce,” says Rob. And he should know, his daughter worked eight years in Stavanger, Norway for Kvaerner and Sub Sea 7. Wiltrading, a subsidiary of Wilhelmsen Investments, was established in 1986, primarily representing Norwegian companies in Australia. From the start, Wiltrading was also an agent for Unitor, almost 20 years before the company became part of Wilhelmsen Ships Service (WSS) in 2005. Wiltrading still provides logistics service for the Unitor product range, in cooperation with WSS. Other integrated activities include marine safety, fire suppression and protection, and equipment and servicing. Main segments are Shipping, Oil and Gas, and Defense. Wiltrading is present in all major Australian ports, and has a workforce of 80 employees.
ydney: At the brand new Wilhelmsen
House in Rosebery, Sydney, we are met by CEO Michael Devlin who proudly shows us the new premises. “We are both a private equity group, focusing on property development and ownership, and a safety, fire and security services through our wholly-owned companies Wiltrading, Wilhelmsen Manufacturing Australia and Life & Rescue International. Today we have a national network employing over 200 people in 14 locations along the Australian coast. The largest company is Wiltrading, focusing on the maritime safety segment,” explains Devlin, who has been CEO of WWI since early 2009. The new Wilhelmsen House, inaugurated in February 2012, accommodates the WWI corporate office, but is also the office, warehouse & service station for Wiltrading, and the warehousing & logistics centre of Wilhelmsen Ships Service’s Unitor products in New South Wales. The new facilities also allow for the expansion of the latest acquisition Stace P/L into the NSW market, servicing Australian Navy vessels at the Sydney naval base at Garden Island.
SYNERGIES WITHIN THE GROUP. “We work with WSS every day and
26 WWWORLD 1 2012
WWI – part of the Australian family Wilh. Wilhelmsen Investments (WWI) is a leading Australian industry group, owned by the Wilhelmsen family holding company Skips AS Tudor in Oslo.
REMANTLE: “Our family’s mutual interest with Wilhelmsen
carry out product deliveries on their behalf to customers. We also provide storage of Unitor products in our warehouses, and service their fire-fighting equipment. Wallenius Wilhelmsen Logistics is often the ocean provider for both companies. In many ways we act as one to the outside world,” says Robert Lynn. In Fremantle all Wilhelmsen entities work closely together in ‘Wilhelmsen House’. “It’s unique that a company like Wilhelmsen has had business in Australia for more than 115 years, and certainly that is the case in the maritime industry. Most people are aware of the Wilhelmsen brand; at least they recognize the large orange vessels in Australian ports. Norwegian vessels and seafarers are synonymous with quality,” says general manager and honorary consul Robert Lynn.
shipping, heavy industry, construction and defence. ➜➜With 115 plus years of operation, WWI own three national businesses: Wiltrading; Wilhelmsen Manufacturing Australia (WMA) and Life & Rescue International (LRI) incorporating Fire & Security Services. Property entities under the Kubis banner own and develop an extensive commercial and industrial property portfolio. ➜➜For more information: www.wilh.com.au/.
Group cooperation. Although there are dif-
THE CONSUL: Robert Lynn has been general manager of Wiltrading since the start in 1986. He is also a staunch friend of Norway as honorary consul in Western Australia.
ferent ownerships, WWI has close associations with Wallenius Wilhelmsen Logistics (WWL) and Wilhelmsen Ships Service (WSS), on ordinary market terms “Whenever possible, we try to locate together with the other members of the group, with WWI as property owners. We are look-
Mike Devlin outside the new Wilhelmsen House in Rosebery, Sydney. ing for joint business opportunities, and last year we approached the market together as the Wilhelmsen alliance. For us it’s a marketing opportunity to tell the Wilhelmsen story and our 115 plus years of doing business in Australia,” says Mike Devlin. He emphasizes that the executives within the group meet on a regularly basis, and update each other on current projects. Similarities. Michael Devlin sees a bright future for both the Wilhelmsen companies and the Australia economy in the years ahead. A long history, strong customer relations and a solid brand name is vital parts of the success. “Australia is also a very legislative driven country, and since much of our business is within safety products, compliance is a key driver for our business. From my point of view we are very well positioned, since we operate in one of the largest resource markets in the world, one that has a growth horizon of least 20 to 25 years in terms of LNG, iron ore and coal,” says Mike Devlin, CEO of Wilh. Wilhelmsen Investments. WWWORLD 1 2012 27
Special report AUSTRALIA
Qube Logistics ➜➜Qube is Australia's largest integrated provider of import and export
logistics services with national operations that provide a broad range of services.
➜➜The Ports & Bulk division has
diversified operations from Port Hedland in the west, where they stockpile and load iron ore for export markets, through to Port Kembla in the east where the company handles motor vehicles, heavy machinery and project cargoes.
➜➜The Logistics division has strategi-
cally located facilities in all capital city ports and provides road and rail container transport, customs and quarantine services, container parks, intermodal terminals, warehousing and international freight forwarding.
➜➜Since listing in 2007 the company has
undergone significant growth and joined the ASX S&P 200 index in September 2011.
An Australian success story In 2007, Maurice James and a couple of other executives left their positions in a large logistics company to start their own business. Initiated by Sam Kaplan and the Kaplan consortium they raised AUD 200 million from investors and the stock exchange. Five years later Mr. James is managing director for Qube Logistics with 3500 people employed and a market value of 1.4 billion Australian dollars.
YDNEY: “Good relations are important
in our business and we have managed well with both shareholders and customers in order to grow the business,” says Maurice James modestly when we meet him in the Qube head office in downtown Sydney. The second largest shareholder in Qube Logistics is Wilh. Wilhelmsen Holding (WWH), with 76 million shares and an 8% ownership in the Australian logistics giant. “Qube is a strategic investment for us, and we have enjoyed a good return on our investment in the company,” says group CFO Nils P Dyvik. In March this year WWH sold 12 million shares in Qube Logistics Holding Limited (Qube), realising a cash proceed of USD 20 million. A national supply chain. The Qube story
Managing director Maurice James in Qube Logistics: “I see great potential for Qube and WW to work together on new logistics solutions in Australia.”
28 WWWORLD 1 2012
started with the ports, and then continued with a steady move up the transport chain. At present, Qube operates in 29 ports around the country, runs its own trains and is on its way to becoming a major player in resource logistics (see story from Utah Point). Their latest investment in this respect was the AUD 119 million acquisition of Giacci, a mine haulage operator in Western Australia. In 2012, Qube has also invested heavily in property projects in Sydney and the port of Melbourne. “Our strategic focus is simply to grow by investing in the national import and export supply chain, moving goods in and out of Australia. We are an island nation in the middle of a resource boom, and a large importer of
consumer goods from other parts of the world. Our strength is a deep knowledge of logistics operations, and that formula has proven successful,” says Maurice James. Intermodal transport. Qube moves
freight on both road and rail, and has developed an impressive rail capacity, now operating 55 locomotives and more than 500 railway trucks in its own fleet. “We have a strong belief that in the future it will be important to develop inland ports or intermodal terminals to move freight from the major ports to customers all over the country. This intermodal strategy is a key strategy for Qube in the coming years, and we believe it will strengthen our position further,” says Mr. James.
Cooperation with Wilhelmsen. The
head of Qube Logistics is very satisfied with Wilhelmsen’s ownership in the group, and adds that the two companies also co-operate on an operational level: “In addition to Qube working as stevedores for Wallenius Wilhelmsen Logistics, I see great potential for both companies to work together on new logistics solutions in Australia. The typical logistics supply chains in and out of ports today are fragmented, with a lot of individual players. Our objective is to bring all those various activities together, and build on our economies of scale. And we would like to see the Wilhelmsen group as partners in this strategy,” says Maurice James to WW World.
dirt, dollars and hard work This is it. As far away from regular office life as possible. Welcome to Utah Point Bulk Facility, where hard-working people in safety helmets and protective gear are turning the resource boom in Australia into reality. WWWORLD 1 2012 29
Special report AUSTRALIA
Some of the management team at Utah Point. From left Katy Paterson, Dean Spargo, Andrew Rattery, Darci Seabrook, Darryl Jenkin, and Emma Battelley. Photo: Arild S. Johannessen ORT HEDLAND: “Do you have a pair of steel-capped boots?”
P A dedicated team of more than 60 professionals from Qube Bulk handle more than 13 million tonnes of minerals at the Utah Point Bulk Terminal in Port Terminal. All photos: James Lauritz
That was the question from operations manager Dean Spargo to WW World’s representative before making the two-hour flight from Perth to Port Hedland. Naturally we didn’t possess such gear. But in an environment where safety matters most, suitable shoes were available upon our arrival along with a safety helmet and protective eyewear. Port Hedland is the highest tonnage port in Australia and largest town in the mineral rich Pilbara region of Western Australia. With its natural deep port it has become a main hub for the mining industry. Last year 200 million tonnes of minerals where transported into Port Hedland from the major mines from up to 10 hours away by rail or road train, and unloaded in large stockyards before shipment to all parts of the world. UTAH POINT is such a stockyard terminal, working mostly for up and
coming mining companies that do not have their own infrastructure in place. This is where Dean Spargo and his team of 60 colleagues at Qube Bulk (former POAGS) enter the picture. Qube Bulk is a division of Qube Logistics, where Wilh. Wilhelmsen Holding is the second largest shareholder. “In stockyard one we manage 13 different stockpiles with more than a million tonnes of cargo capacity in total. Most cargo is naturally iron ore, but we also handle manganese and chromite. Each year we receive and stockpile ore delivered by road trains and load onto bulk carriers more than 13 million tonnes of ore. It’s a 24/7/365 operation,” says Dean, who for the last two years has lived in Port Hedland with his family. This is cargo logistics on a rough, but high level. The Qube Bulk team controls in and outgoing traffic of the heavy road trains, loading and stockpiling of cargo, loading of vessels using enormous Front End Loaders onto conveyer systems, and calculate cargo passing through the terminal on behalf of customers. An important job, but a dirty one, is cleaning the heavy plant and equipment before a new vessel is loaded with cargo. HARD WORK. “Employees work a three-panel roster – five days, five
nights and then five days off. Each shift is 12 hours. It’s hard work, with good pay. Among our employees are people with all kind of backgrounds, from surfers to schoolteachers and even stockbrokers. We even have a Dutch girl with a degree in clinical psychology. Here at Utah Point she operates the control centre,” says Dean, himself a 39 year old former IT consultant who switched to operations in 2007. “I was shift manager for the stevedores at Port Kembla before I came here just before Utah Point came into service in 2010. It’s a privilege to work with so many talented and highly motivated people as we have here at Utah Point,” says operations manager Dean Spargo at Qube Bulk. WWWORLD 1 2012 31
Isn’t it strange how events can influence your life? Ask WW captain Adam M Puscion. He has been blown around by the winds of fate more than most. Text: Einar Chr Erlingsen
Proud master: Captain Adam M Puscion on the bridge of MV Tijuca. 32
Somewhere in the South Atlantic with the course steady set for Port Elizabeth in South Africa, captain Adam Puscion is thinking about the events that were to change his life so radically thirty years ago. Born in Poland, he had started to hope for a better future through the activities of the Solidarity movement and of their famous countryman, Pope John Paul II. Poland was slowly opening up to the outside world after the long and dreary years under communist rule. On 13 December 1981, however, everything changed for the worse. After intense Soviet pressure, general Wojciech Jaruzelski declared martial law, outlawed the Solidarity movement and arrested most of its leaders. ‘My dreams of freedom were crushed that day,’ relates captain Puscion, at that time 29 years old and third officer on board the Polish ship MV Marian Buczek. The ship was loading copra on Kiribati Island in the Pacific for Fredrikstad, Norway. Three long months. The next three months
were to become the longest of his life. It seemed there was no place for democracy and a good future in Poland. Instead, he started thinking about “jumping off” to the West. ‘I kept on changing my mind,’ he says. ‘It was by no means an easy decision. Back home I had my mother and brother, and I was afraid that the authorities would take out their revenge on them. I also had a strong feeling that I might never see them again.’ His ship arrived in Norway on a cold, wintry day. The calendar read 28 February 1982. The news coming out of Poland were still very depressing. The Iron Curtain had descended on Polish hopes once more. Adam had made his decision. On 4 March 1982 he finished his watch and went to the local police and immigration office in Fredrikstad and informed them that he had no intension of returning to Poland. ‘I had two options for “jumping ship” before the Marian Buczek was to return to Poland: either Fredrikstad or Karlshamn in Sweden. I chose Norway because of its strong shipping and oil industry, and links with my country. Polish soldiers fought bravely alongside Norwegian forces in the battle of Narvik during the Second World War. Behind bars. Adam was put behind bars for a
couple of hours awaiting the Norwegian chief
Celebrations: Captain Adam M Puscion’s “150 Moments” entry was among the winners at the Wilh. Wilhelmsen 150 years’ anniversary celebrations on 1 October last year. He and his wife Maud were especially invited VIPs, welcomed by GCEO Thomas Wilhelmsen.
Work inspection: Captain Adam M Puscion is pleased with the work being done on board MV Tijuca by bosun Socrates Trinidad (to the left) and ordinary seaman Erick Coros.
Improved efficiency through Post-Panamax design When the new Panama Canal waterway opens in 2014, it will allow passage of vessels of up to 49 m wide. Wallenius Wilhelmsen Logistics and a joint team of engineers from WW ASA and Wallenius Marine have studied the most practical and cost-efficient design for the new Post-Panamax PCTCs. Text: Kaia Means slo, Norway: In the new lock system, Post-Panamax vessels can be up to 49 m wide, 366 m long and have draft of 15 m. However, due to restrictions at some Japanese ports, Wallenius Wilhelmsen Logistics has requested that the new Post-Panamax PCTC design must be no longer than 200 m in length. Although other ports may restrict the vessels’ beam, it was agreed that a design of up to 36-37 meters could be investigated. With these limitations, how wide does it make sense to design the next generation of PCTCs? What savings can be achieved from such a design, compared with the current Panamax ships with a beam of 32.26 m? To determine this, both Wilhelmsen and Wallenius are having their teams work on the “HERO” (High-Efficiency Ro-Ro) project in close cooperation with Wallenius Wilhelmsen Logistics, who have a leading role in the project. The goal is to determine the most practical and cost-efficient design given the possibilities of the new main dimensions of the ship.
O Christmas 2011: A very different Christmas from the one in 1981 on board the Polish vessel MV Marian Buczek.
investigator. He was interrogated thoroughly for several hours about his motives before he was sent to a hotel with a temporary permit to stay in his pocket. He was soon to discover that he wasn’t the only one to abandon ship that day, five of his fellow shipmates did the same. ‘So at least I had some company,’ he says. ‘We did not know our future, but were happy to be in Norway. I had no means of communicating with my family, all communications between Poland and the outside world had been severed and letters were censored. Needless to say, I was very worried about them in those days – and they about me.” Otherwise, things were brightening up. He got a place to live through the local community centre, and a few months later, in June, he was back at sea again as ordinary seaman on a ship owned by the Einar Lange shipping company. In 1984, he qualified as second officer through his exams at the local maritime school in Fredrikstad and regained his position as 3rd officer on a ship owned by Leif Høegh & Co. In 1987, after three years of sailing and studies 34 WWWORLD 1 2012
he completed his education at the maritime college in Tønsberg. A new life. In November 1989 things changed dramatically in the country of his birth, with the fall of the Berlin wall. By then Adam was well settled in Norway, happily married to his Maud. The couple has two daughters, Ann Kristin and Linda, and the most charming grandson - little Sebastian. ‘To move back to Poland at that stage was no longer an option,’ says Adam. ‘I was too well settled in Norway, and happy to take up contact with my Polish family again. I have no regrets about my decision to “jump off” those 30 years ago.’ He stayed with the Høegh company until 1990 and rose to the rank of chief officer. That year he started working in the same position for The Norwegian America Line (NAL) on board MV Trianon – owned by Wilhelmsen and still a WW ship. In 1995, NAL was merged with Wilh. Wilhelmsen. Two years later, on the 3rd of
May 1997, Adam Puscion was given his first command, on MV Takamine ‘The events in Poland and my decision as a result of this changed my life for ever – and
”I have no regrets about my decision to ‘jump off’ those 30 years ago.” for the better,’ says Adam ‘We have our own house in Fredrikstad, and – very typical for Norwegians – own a country house for our holidays. When not at sea I enjoy life with my family, and with hobbies such as photography, carpentry, cooking – and again, very typical Norwegian: skiing, both downhill and crosscountry. ‘The winds of fate that blew me away from Poland all those years ago have proven to be kind ones, after all.’
POST-PANAMAX: The new vessel will have a capacity of up to 8000 car units. (Illustration: WW ASA/Technical Department)
Breadth optimisation study. “Through a
detailed study we found out that if we make a ship that is 36-37 meters wide with 13 decks, it will have good stability without the need for as much ballast as in present designs,” says Lars Dessen, Head of WW Vessel Design at WW ASA Technical Department. This would again give a lesser displacement (total weight of ship, bunkers, ballast and cargo). A reduced displacement could also mean less fuel used pr transported cargo. “If we have 12 decks, 34-35 m wide would be best,” says Dessen. The stowage efficiency is also a factor, and statistics from cargo transported by WWL were used to determine optimal widths for the most commonly transported vehicles. The structural arrangement of a wider vessel also has an influence on lightweight of the
Lars Dessen, Head of WW Vessel Design at WW ASA, Technical Department. ship (ship without fuel, ballast and cargo) and its centre of gravity. This again may have an influence on the performance of the design. Hull efficiency and performance. “The
length to breadth ratio of the design is also important for the performance of the ship,” says Dessen. “A relatively short vessel with a wide beam may be less optimal than a long slender hull, as there is an effect on the hydrodynamic efficiency of the hull as it widens up to 36-37 meters.”
It was considered necessary to confirm that the new dimensions would give a vessel with acceptable performance. In order to investigate this, WWL, Wallenius and WW contracted CTO, a model tests basin in Poland, to analyse fuel efficiency in still water, performance in waves, manoeuvring, and course-keeping stability. The analysis also included computational fluid dynamics (CFD) tests in order to study different hull forms. The results confirmed that such a design would satisfy the required performance criteria. Capacity. The new vessels will have a capacity
of up to 8000 RT (car units), compared with the current typical PCTC design of about 6500 RT. “This will give a capacity equivalent to a LCTC (Large Car Truck Carrier) on a current Panamax beam, but with a length of about 230 meters,” says Dessen. There is a projected 10 to 15 per cent savings in fuel costs per RT with the increase in capacity represented in the new Post-Panamax design compared to a typical existing PCTC design. “This has been a team effort – and we are working closely with WWL and Wallenius,” says Dessen, whose team of 10 people at WW Technical Department have all been involved in the project. “We’ve come up with a possible design for the future and I expect to see the wider ships in our fleet within not too long,” he says. “The new vessels will be up to four meters wider than the current generation. That’s not enough to make them look markedly different from today’s ships. But we are looking at options for other elements that may make the design even more energy efficient, such as alternative propulsion solutions,” he says. “We wanted to find out if a Post-Panamax design gives us an opportunity to make a more transport efficient ship design, and we have the answer. It does,” says Dessen.
WWWORLD 1 2012 35
Multi-stream scrubber ➜➜Supplied by Wärtsilä Hamworthy ➜➜Will remove sulphur and particulates from a
vessel’s exhaust gasses
➜➜The emissions of SOx can be reduced to under
0.1% ➜➜Scrubber is 14 meters tall and weighs close to 45 tons when in operation ➜➜The installation combines the exhaust from the main engine and all five auxiliary engines into one stream ➜➜The first attempt anywhere in the world to install a scrubber of this size ➜➜Pilot project installation on MV Tarago is scheduled for March next year
Pioneering multistream scrubber When a 14 meter tall multi-stream scrubber is installed on the deck of MV Tarago next year as a pilot project, it will be the world’s largest. Text and photo: Kaia Means slo, Norway: The multi-stream scrubber, supplied by Wärtsilä Hamworthy, will represent a big step toward more reliable technology that can help the industry as a whole to comply more efficiently with increasingly stringent environmental regulations. The Krystallon Exhaust Gas Cleaning System (EGCS) will remove sulphur and particulates from the exhaust gasses of the vessel’s main and auxiliary engines. It will clean an unprecedented amount – the main engine alone produces 180,000 m3 of exhaust per hour that must be cleaned by the scrubber, which will weigh close to 45 tons when in operation. “The installation is in many ways unique,” says senior project manager Thamba Rajeevan at Wilh. Wilhelmsen ASA Technical.
”We are giving a hand to the industry.”
Never done before. It is the first attempt
anywhere in the world to install a scrubber for this number and size of engines. The only pollutants that are not included come from the auxiliary boiler, which is solely used in ports. “This installation combines the exhaust from the main engine and all five auxiliary engines into one stream. It’s never been done before,” says Rajeevan. 36 WWWORLD 1 2012
“The biggest challenge, as we see it, is the routing of the big pipes,” says Rajeevan, noting that the 14 meter tall construction on the deck will represent a challenge for engineers. The associated systems and pipes will mainly be installed below the deck. The installation on the Mark IV ro-ro ship MV Tarago is scheduled for March of next year, planned at Sembawang in Singapore. Originally it was determined that the scrubber should be installed on MV Tarago’s sister ship MV Tamesis, but scheduling conflicts made it necessary to instead install it on MV Tarago. Risk assessment. Certification society DNV
is currently carrying out a risk assessment of the project on the design, installation and the operation. This process is divided in two parts, first a FMEA (Failure Mode Effect Analysis) to identify possible risk elements in the design itself. The second part is a HAZID (HAZard Identification) for identifying the risks related to installation and operation, The scrubber will be able to operate on both an open and a closed loop, where the closed loop releases a very limited amount of effluent, which can either be collected in a holding tank or be discharged directly into the sea from the ship. Currently there are no restrictions anywhere concerning the discharge of effluent from scrubbers, but in the future some local ports may require limited or even zero discharge from the system. “This ship will
be prepared for all eventualities,” says Rajeevan. By cleaning the exhaust, the emission of SOx can be reduced to the required level when sailing in the Emission Control Areas (ECAs) as determined by the International Maritime Organisation. The only other viable method for most of the existing fleets in the world to reduce SOx emissions to under 0,1%, which will be the requirement as of January 2015 (in ECAs), is to run the engines on marine gas oil (MGO). “The projected price difference between HFO and MGO in 2015 and onwards is USD 300 to 400 per ton. But the shipping industry expects that growing demand for sulphur-free fuel in the land-based industry- and transport sector will have a negative impact on the price development and we may have to prepare for even worse scenarios,” says Rajeevan. Extended testing. Rajeevan says that
the results of the pilot project will help in the mapping of the WW fleet to determine which vessels might be suitable for a similar installation. This will be limited to ships that are young enough to have many operating years left, justifying the projected pay-back time for the investment. In addition, ships that are routinely sailing in ECAs would be candidates. One of the main objectives of this project is to do extended testing on the installation to demonstrate and facilitate information for lawmakers and port state authorities, especially on particulate matters and also on effluent discharge. The Norwegian maritime technical institute Marintek will be involved in the testing phase after commissioning, which will last for one year until the spring of 2014. This pilot installation project is partly funded by the Research Council of Norway. “The industry needs to try the technology on vessels in order to develop the product further and to make it more reliable. In that respect, we are also giving a hand to the industry,” says Rajeevan. “In the end, we want to see both a significant savings in emissions and a strong return on investment for the scrubber,” he says.
Reduced emissions: Senior project manager Thamba Rajeevan at Wilh. Wilhelmsen ASA Technical says we could see significant savings in emissions and also a strong return on investment for the multi-stream scrubber. Illustration of Wartsila Hamworthy scrubber configuration on M/V Tarago.
WWWORLD 1 2012 37
Wilhelmsen Insurance Services ➜➜Activities include inviting tenders,
purchasing and placing marine insurances at competitive prices with underwriters on behalf of customers, marine claims handling and loss prevention services. All global insurance contracts within the WW group are cleared by WIS. Total staff: 11. WIS is a company owned by Wilhelmsen Maritime Services (WMS) and operates under the Wilhelmsen Ship Management (WSM) umbrella.
are insured through WIS
OF THE CUSTOMERS
are in-house, while partners and fully external customers represent approximately 1/3 each.
A good track record means everything Marine insurance is very much a question about team work. It is also both a challenging and fun business, according to our 11 colleagues in Wilhelmsen Insurance Services. Text: Einar Chr Erlingsen Photos: Kaia Means
USD 6 BILLION
is the total insurance value for ships insured through WIS.
USD 35 MILLION
total premium costs/year.
slo, Norway: We might not all
agree, but insurance is great fun! That is, if we believe general manager Marthe Romskoug and her colleagues at Wilhelmsen Insurance Services (WIS). Marthe herself is the living proof of the claim. She started working for WIS with a two-year time frame. 20 years later she is still there, more enthusiastic than ever. ‘Imagine,’ says Marthe, ‘we are dealing with colleagues in some 74 countries all over the world. We get a unique insight into almost everything that is going on within the Wilhelmsen group. No matter what you do in WW, insurance always plays a part.’ Trusted partners. WIS as a company demonstrates sound financial results under Marthe’s leadership. More important however, are the savings for the Wilhelmsen group and our external clients through loss prevention initiatives by WIS, as a good track record means everything when stipulating insurance premiums. ‘Frequent claims are still noticed, but as big accidents always will occur, it’s the many small claims that reveal whether you are focusing on loss prevention, says Marthe. ‘The WW name inspires a lot of confidence, accumulated over many years, and with our diverse insurance needs, it is of great importance that we have a long-standing relationship with big trusted insurance companies. Negotiating insurance on behalf of our clients, gives WIS the volume needed to obtain the best prices and conditions available in the insurance market. ‘Many small claims are time consuming for everyone. The importance of GCEO
38 WWWORLD 1 2012
A good time: Marthe Romskoug, general manager Wilhelmsen Insurance Services is still having fun at work – twenty years after she arrived for an intended period of two years.
The team: (front row, from the left) Øyvind Krapf-Sterner (account and claims handler), Einar Stenberg (finance manager), Wenche S Larsen (broker), Eivind Killengreen (claims manager liability/broker), Christine Nummedal (broker assistant) and Heidi Skarsten (office assistant). Second row, from the left: Annika Kättström (insurance manager/broker), Svein Bratager (claims manager marine), Marthe Romskoug (general manager) and May N Jørgensen (broker). Not present: Solveig Gromholt (broker assistant).
Thomas Wilhelmsen’s focus on loss prevention through AOP and strategies cannot be overstressed. To put it bluntly: we want to have a good reputation!, says Marthe Romskoug. Costa Concordia – and you. Insurance
costs are on the increase, driven by unfortunate statistics. An accident like when the Italian cruise ship Costa Concordia went aground in January 2012 affects absolutely everyone – and not just in the shipping business. ‘Insurance is a very international market, so at the end of the day everyone has to pay through increased premiums – even you and me,’ says Marthe Romskoug. New products. Technical or legal assistance
New man: Svein Bratager comes from a maritime background with a valuable experience as claims manager marine.
and claims handling are other services offered through WIS. Being part of a huge international maritime organisation is what sets WIS apart from most competitors, due to easy ac-
cess to technical, navigational and maritime knowledge within the group. Marthe Romskoug emphasises the importance of her team of competent employees. With their help and with profiled underwriters in the market, WIS has initiated several new global insurance products in order to meet the needs of a group which is shaping the maritime industry. Global non-marine. In order to minimise
insurance costs, WIS use the considerable bargaining power to negotiate global insurance coverage for the relevant business areas within the Wilhelmsen group, thus obtaining very favourable rates. This enables local entities to obtain insurance coverage at significantly lower rates than would be possible if they were to approach the insurance market on an individual basis. WIS has a key role in risk assessments,
placing insurances and claims management, summarised such: ➜➜To give advice on insurance solutions and
insurance market information
➜➜To give recommendations on placing and
renewal of insurances
➜➜Claims administration, hereunder to sub-
mit, manage and follow up and negotiate settlement of claims ➜➜To assist in the resolution or conduct of difficult or contentious claims with insurers where required ➜➜To maintain loss record of paid and outstanding claims to underwriting disclosure and inclusion in renewal submissions
‘It’s a huge administrative programme, but now that we know it, it is a joy to work with,’ says Marthe Romskoug, who is still having a great time at work. WWWORLD 1 2012 39
slo, Norway: One has climbed to
the very top of the career ladder in her field with little formal education. The other holds a Master of Management and Master of arts from the Royal Norwegian Air Force. Different genders, different backgrounds, but with a very similar approach to the job as group vice president HR & OD. Kirsten Haune (65) was only 20 years old when she applied for a position as secretary in WW’s controller department in 1967. JørnEven Hanssen (46) however literally came into touch with the company when even younger – through a WW oil spill in the sea where he was swimming. That was in the years after our ship MV Tirranna went aground and broke up right outside his birthplace Finnsnes in Northern Norway in 1966. (Editor’s remark: the accident happened after a light buoy had gone out). ‘It took decades before the wreck was completely removed.. Naturally it represented an irresistible source of adventure for young boys,’ Jørn-Even says.
says Jørn-Even Hanssen. ‘This fits well with my own views,’ says Kirsten. ‘We have grown into a huge company with a complex organisation, covering a broad range of activities from retailing maritime equipment to operating ships. We have an excellent set of company values and other
Quality Management etc. My basic philosophy is that you always should treat people in a predictable, fair and respectful way. And you need to be consistent over time. If you are able to do this, and that of course sometimes can be a challenge, the reward will be great results and a good working environment. ’ ‘I fully agree,’ answers Kirsten Haune. ‘People change, the organisation will change. Bring with you the best of our traditions. My experience is that even the toughest challenges will bring insight and strength. You will discover strengths in people that you never even imagined, and you will gain strengths of your own to benefit from later in life.’
“Even the toughest challenges will bring insight and strength”
It’s always about people One is leaving, the other taking over. Views can change, but never on this: Kirsten Haune and Jørn-Even Hanssen both agree that a good company culture always starts with people. Text: Einar Chr Erlingsen Photo: Kaia Means
Changing of the guard: Jørn-Even Hanssen replaced Kirsten Haune as group vice president HR & OD on 1 May – and got some very good advice on the way.
40 WWWORLD 1 2012
Second time around. Although a newcomer
to his new responsibility in WW, Jørn-Even Hanssen is already quite familiar with WW company culture after more than four years as VP for HR in Wallenius Wilhelmsen Logistics (2002 to 2006). ‘When I was invited to seek the position after Kirsten, I did not hesitate for long. WW enjoys great respect for its ability for being both expansive while still caring for its proud tradition.’ Says Kirsten: ‘I see it as a great advantage that my successor combines his inside knowledge with a formal and updated HR competence. My sentiments for this company are strong, so it feels good to leave the torch to someone who fills both requirements.’ ‘My military background has taught me to respect people at different levels and phases in life and to realise the importance of people at all levels working together to achieve results,’
Kirsten Haune governing principles, but at the end of the day it all boils down to creating a good working environment for everyone.’ A word of advice. Asked whether she has
some good advice for her successor, Kirsten Haune replies: ‘I want to make it very clear that it’s not my shoes Jørn-Even has to fill. He should find his own way of approaching the challenges. The corporate HR role should have a broad, international approach with common policies and processes to be implemented globally.
“Dignity and respect”. Kirsten Haune has had her share of trials through her years in HR. ‘Company closures, downscaling, people who have lost their jobs, accidents. My experience is that difficult decisions are met with understanding if they are communicated with dignity and respect.’ ‘I see WW as a generous, but prudent employer,’ she adds. ‘In general, our employees have become more demanding than before. But I also recognise a great will to participate and to contribute.’ ‘It’s definitely more challenging to be an employer today,’ Jørn-Even Hanssen agrees. ‘You have to offer a stimulating working environment that makes people want to work for you. You must never take that for granted.’ ‘You must make sure that you employ people with the right competence and attitude. Competence alone is not enough if it is not matched with the right set of values. Equally important is that our leaders live up to those values themselves,’ says Kirsten. ‘Definitely. Everyone has both a need and a right to be seen as individuals. We all want to contribute in a positive way and want to be recognized for it. Easy to say, not always easy to do, says Jørn-Even Hanssen.
“You have to offer a stimulating working environment that makes people want to work for you” Jørn-Even Hanssen
My advice is quite general: start by getting to know the main stakeholders, build and create trust. And build relationships to other HR employees throughout the group.’ ‘In terms of organisation development, I have never believed in revolution,’ replies Jørn-Even Hanssen. ‘Rather in evolution. My field of responsibility (HR and organisational development) has been exposed to many fancy “fads” like Business reengineering, Total
WWWORLD 1 2012 41
Learning by playing: New WW employees and WW Academy playing the MipMap game. From the left: Anita Rudiløkken, Emilie Lundwall, and Hilja Tuori.
New challenges: Naja Faye Boone (to the left) has like other new WW leaders been through the “New as a manager” training, where she faced a number of management dilemmas. Here she is with vice president communications Benedicte Gude.
Challenging new leaders
Practice makes perfect On a huge map green, yellow, red and blue ships “sail” along carrying cargo from one continent to the next. Who is going to win? Using this very concrete board game new employees in WW learn what daily operations in international shipping is all about. The game is called MipMap and has been developed by an internal project group. MipMap recently won a silver medal in the category
As a new leader, how do you tackle a difficult management dilemma? What do you do if productivity decreases in your team the minute you walk out the door? Discuss the dilemma in WW Academy’s “New as a manager” training.
Silver and bronze
Text: Einar Chr. Erlingsen Photos: Karl Braanaas/Budstikka
The two award winning programmes – Maritime Industry
slo, Norway: ‘We take good lead-
ership seriously. That’s why we have developed this program for new leaders,’ says vice president communications, Benedicte Gude. ‘This survival kit will ensure good leadership and reduce the risk of leaders that don’t function well. We are going to give them a good starting point,’ says Gude. Using a dilemma board the employees will be presented one of the company’s values they will use to discuss possible problems. Before beginning the participants have read a 42 WWWORLD 1 2012
reflection book with concrete questions such as: “What kind of a leader would you like to be”, “Are you a good listener?” They have also taken five eLearnings on similar topics and watched a film where Group CEO Thomas Wilhelmsen explains the company values and his idea of good leadership. Awareness. Naja Faye Boone, in charge of communication at Wilhelmsen Ship Service, has completed the program. ‘It’s motivating to be part of a company that takes leadership development seriously. Training of new managers is important so
that we can exercise value based management with confidence. The course focused on strengthening certain leadership qualities and techniques. But ultimately, this is about business and giving new managers like me the equipment to get the right results the right way, which is important for our company,’ says Naja Faye Boone. This offer is sponsored by the company and those who find this training kit relevant should contact WW Academy.
Programme and New as a Manager – are part of the extensive curriculum developed and offered by WW Academy, WW’s worldwide learning resource centre. Hilja Tuori, acting head of the WW Academy believes the reason WW won these awards is that the concepts are innovative, fun and engage the participants. Key executives as well as industry experts were involved in the development work securing realism and the WW flavour.
“Best use of game in learning” in the prestigious Brandon Hall Awards – in competition with large players such as Walt Disney and Accenture. ‘The game provides a quick introduction to shipping so you can quickly understand the strategy, dynamics and concepts,’ says Emilie Lundwall, learning consultant WW Academy in charge of the Maritime Industry Programme.
‘We believe that empowered employees in an innovative, learning organisation
are our most competitive advantage in meeting the needs and wants of our customers,’ says Thomas Wilhelmsen, Group CEO. ‘Our ambitions are global, so it’s an honour to receive this recognition from Brandon Hall, an international name in learning and organisational development,’ Mr. Wilhelmen adds.
Anita Rudiløkken, director treasury WMS finance has also tried her hand at the game: ‘It was very rewarding. You really learn by doing. It’s intensive and it’s fun. I got very excited, especially when we received a warning of pirate attacks. It wouldn’t have been easy to handle if we hadn’t had a contingency plan and proper crew training beforehand,’ she says.
Said about MipMap “MIPMAP gives us
a fantastic opportunity to understand and experience the process of trading freight and chartering vessels while keeping within the realistic framework of the game. It helps us to identify the importance of time, market conditions, competition and costs while being a vessel operator and shows how dynamic the whole industry is. I was thrilled calling the shots which for a while transformed me into the real world of chartering.” Cibby Cherian account manager UAE, Wilhelmsen Ships Service, Dubai
“It’s a very interesting game
with a lot of combined maritime knowledge. The game rules are fair and balanced, thus players have to use their knowledge and strategy rather than luck to win this game. The main ro-ro liner routines, risks and strategies when operating a vessel as a ship owner/charterer are deeply rooted in our minds now.“ Mier Shi marketing coordinator Wilhelmsen Technical Solutions, China
WWWORLD 1 2012 43
What is social media?
Social media essentially is a category of online media where people are talking, participating, sharing, networking, and bookmarking online - AG Communications Group Official WW group sites:
LinkedIn: Wilh. Wilhelmsen group http://www.linkedin.com/company/ wilh-wilhelmsen-holding-asa Twitter:
Wilh. Wilhelmsen group https://twitter.com/#!/WilhWilhelmsen Wilhelmsen Ships Service https://twitter.com/#!/wssnetwork
Wilh. Wilhelmsen group http://www.facebook.com/WWgroup Wilhelmsen Ships Service http://www.facebook.com/WilhelmsenShipsService YouTube:
Text and photo: Stacy Trodal
Wilh. Wilhelmsen group http://www.youtube.com/ Blogs:
Wilhelmsen Ships Service http://wilhelmsenshipsservice.wordpress.com
orway: “The 150 moments campaign
was definitely a defining moment for the group. In just a matter of months we managed to engage employees from more than 100 countries to tell their unique stories. In total, the site received more than 110 000 hits with more than 1 000 “WW moments” uploaded, posted and commented. We never imagined that the campaign would be such a success,” says Benedicte Gude, group VP Corporate communication, WW Holding. A social revolution. We are not alone in
embracing social networking. Today, companies are redefining the way they communicate and do business. Social networking sites such as LinkedIn, Twitter and Facebook have caused a sweeping change in business that will eventually be felt right down the value chain. The rules of the game have changed. We are living in a world becoming steadily more connected by technology. The meteoric rise of new sites has changed the way people interact, build relationships and form decisions. Companies no longer have a monopoly on information – they now have to engage. “We see the real value of being present on these new channels. We’re able to develop new and existing relationships with stakeholders anywhere in the world, increase collaboration and brand awareness, as well as to drive down costs. As the 150 moments website demonstrated, social networking enabled us to reach out to our global network in “the click of a mouse”. Now we can listen, actively partake in dialogue and receive feedback - both posi44 WWWORLD 1 2012
Emilie Lundwall Learning consultant, WW Academy
– unites and redefines our work Uniting a global organisation of 16 000 employees to tell their individual stories could seem like an impossible project for any company. In 2011, the Wilh. Wilhelmsen group did just that, launching its first internal social media campaign, successfully diving into the social media sphere.
How our employees are using social media: I use social media to keep up to speed in the Learning and Development field. In addition to being extremely accessible, these new online channels provide me with a quick and easy way to stay updated on the latest news, courses and research relevant to my field.
tive and negative. I believe this is important if we want to be to be better and develop as a company,” says Gude. While slow on the uptake, the maritime industry is catching up on the social media wave. A 2011 survey conducted by ShipServ into Internet usage in shipping found that 75% of the respondents said they would increase their use of social media in a business context, with more than 50% using mobile web or a social media application every day.
When we were looking for a new WW Academy team member earlier this year, we posted the position on our LinkedIn profiles. Unlike more traditional marketing for vacant positions, LinkedIn doesn’t cost a cent and has a global reach. We’ve also used this channel to promote awards we’ve won for two of our programmes in November last year. It’s a great way to profile and raise awareness of our achievements. Oscar Sandell Vice President Commercial Management, W ilhelmsen Technical Solutions
Double-edged sword. While social media
represents new communication opportunities, it also presents new challenges and risks. The Internet has made information easily accessible. Anyone with a computer or mobile phone now has the power to contribute, share and collaborate online. However, this can lead to privacy and disclosure issues as well as threats to a company’s reputation and brand. Education and increased employee awareness can help companies address many of these issues. In early 2011, we launched a Social Media Policy. The policy was created to provide employees with guidance as to the group’s expectations for engagement in social media. “The guidelines are the first step in a process to raise internal awareness and empower our employees to use social media responsibly. There are already a vast number of people using these channels in a personal capacity and we hope that the policy can enable each person to safely interact and feel confident as ambassadors for the WW group,” says Gude. She also encourages employees thinking of participating in different online communities
”As with any new platform, we need to move forward carefully and have a clear objective.” benedicte gude to “think before they click” and make themselves familiar with the WW group’s social media guidelines. Always do a risk assessment. It’s always wise to research the privacy settings and learn more about the various platforms and communities before choosing to participate. Being the shaper. We have already estab-
lished an online presence with official pages for the Wilh. Wilhelmsen group on Facebook, LinkedIn, Twitter and Youtube. Various companies within the group have also established their own individual official sites. However, Gude is quick to address that like many other industry players, the WW group has taken
time to mature and establish these new online communities. “We need to make sure we don’t follow in the footsteps of many companies that just jump in to the social media scene without a clear plan as to why. As with any new platform, we need to move forward carefully and have a clear objective. We also need to ask ourselves whether we have the internal resources and capacity to manage the risks as well as harness the power that this new media presents,” says Gude. In 2012, we are rolling out an internal campaign to raise employee awareness. The campaign is a first step in the WW group’s overall plan to strengthen its social media activities.
In the past I used social media to stay in touch with new and former colleagues, but recently found that these channels also open doors to much larger networks where I can connect to experts within my field and broaden my perspective with new knowledge. A lot of research and theories are available online, but the challenge is to find reliable and updated information without ploughing through too many web pages. I am a member of several relevant focus groups and discussion forums which provide access to information that live up to the standards I need and can also point me to reliable sources.
WWWORLD 1 2012 45
Wallenius Wilhelmsen Logistics japan
Economic impact of the Great East Japan Earthquake ➜➜The affected areas represented only 2.5% of
Japan’s total economy
➜➜347 km of the 675 km Tohoku Expressway were destroyed following the
quake. All traffic restrictions were lifted on March 24 following completion of emergency restoration measures
➜➜None of the 26 trains operating derailed, nor was there serious damaged to
elevated bridges, stations or tunnels. The entire Tohoku Shinkansen resumed operations on April 29 ➜➜Quays of all major ports in the affected areas were usuable by March 24 ➜➜With assistance from US and Japanese armed forces, the Sendai Airport was restored by March 28 ➜➜Electricity supply through summer 2012 will be without “rolling blackouts”. Capacity will equal demand, but some measures will be taken to reduce peak demand ➜➜The manufacturing, materials and processing industries will be at 66% of capacity by summer 2012 ➜➜ Crude steel production is enough to meet demand ➜➜The auto industry has recovered: ➜➜All Toyota factories resumed production on April 18 ➜➜All Nissan factories resumed production on April 18 ➜➜All Honda factories resumed production on April 11 ➜➜Hitachi’s manufacturing plants for auto parts, lithium-ion batteries and power plant turbines were all back in operation by the end of March ➜➜Radioactivity levels measured in Tokyo were lower than in New York and Hong Kong ➜➜The slowdown in Japan’s economy in Q1 and Q2 2011 was much less than after the “Lehman Shock” in 2008 ➜➜In April 2012, tourism in Japan had reportedly rebounded to 92% of the pre-disaster levels.
STILL A FORCE
TO RECkON WITH Times have been hard in Japan for several years. Nevertheless, Shigeru Tsuneda, in charge of Wallenius Wilhelmsen Logistics in Japan, maintains an optimistic view of the future. Text and photos: Don Pyle
Source: Japan’s Ministry of Economy, Trade and Industry, May 16, 2011
46 WWWORLD 1 2012
WWWORLD 1 2012 47
Wilhelmsen Ships Service japan
okyo: Car exports from Japan were nearly halved in 2009 as a result of the worldwide financial downturn. Then, just as the worst seemed to be over, the Great East Japan Earthquake hit the country’s north eastern region. How did these events affect Wallenius Wilhelmsen Logistics’ operations in Japan, and how do they see the period forward? WW World visited Shigeru Tsuneda, president of Wallenius Wilhelmsen Logistics Japan at his Tokyo headquarters in April to get his remarks. “The financial crisis hit our freight volumes quite hard in 2009, ending a longer period of growth. The earthquake in March 2011 had little direct effect on our operations, but together with the flooding in Thailand that same summer, it has been a bit like a roller coaster. Right now I feel optimistic about 2012 and 2013.” WWL Japan operates in three ro-ro segments: cars, high & heavy equipment and break bulk. In the car segment their customers includes all the major Japanese car manufacturers: Toyota, Mitsubishi Motors, Subaru, Mazda, Suzuki, Honda and Nissan. Around one-half of their income is from this segment. In the high & heavy segment WWL are the market leader. This segment includes agricultural and construction equipment such as bulldozers and excavators. Customers include Komatsu, Hitachi, Sumitomo and Kobelco. About 39% of their income derives from this segment. Break bulk includes a wide variety of goods that must be loaded individually; utilizing relevant equipment . WWL Japan’s break bulk customers include Mazak, Okuma, Amada and Makino. In fact, New York City’s Metro trains have been transported by WWL from Japan to New York as break bulk cargo. Break bulk represents about 11% of WWL Japan’s income. Serving these customers is a staff of 35 people in Tokyo and Nagoya. They are organised in teams corresponding to the three market segments.
due to the weak Won. This is favourable for EUKOR and less favourable for WWL Japan, with its strong Yen. But despite the currency issues, the prognosis for Japanese car exports is good. Tsuneda san explains that the focus for WWL Japan forward will primarily be on the car segment, due to its relative size. High and heavy exports from Japan are also expected to be strong, especially to the US and South America, with its growing mining industry and construction activities in connection with the upcoming World Cup. Break bulk is also showing a strong trend, particularly
”Japan offers the best overall quality in the world.”
Stable market, strong focus. The
Japanese auto industry predicts an export volume of 4.5 to 4.8 million units in 2012, which is considered a healthy figure. The estimated figures from Korea and Thailand are about 3 million and 1 million respectively. Exports from Korea are likely to increase this year 48 WWWORLD 1 2012
to the US and in the aviation and petroleum segments. “I do not believe in making wild predictions, but I do believe in Japan and WWL Japan. Currency and unexpected events can of course affect us, but Japan’s exports look stable in the short and medium terms. I believe this is because Japan offers the best overall quality in the world.” Competitive advantages. WWL Japan is
in the supply chain management business, offering solutions from factory to dealer. In the car segment they are one of the Big Six operators, successfully competing with the best. “The ‘secret’ in this segment is that they have a simple and highly efficient operation and carry clean cargo,” says Tsuneda san. In the high and heavy and break bulk segments Wallenius Wilhelmsen Logistics is the only operator that can carry really heavy cargo like excavators and bulldozers or massive break bulk like subway trains and windmills. This kind of cargo flexibility gives them a major competitive advantage. WWL can fill their vessels with more than cars. Summing up, Tsuneda san cites five reasons to feel optimistic forward: “First, we carry clean cargo. Second, we have a simple and efficient operation. Third, we have a cargo flexibility capability that is unique. Fourth, current market conditions are stable to strong. Last but not least, the WWL Japan team is great! They know what the customers expect and they deliver it, again and again!”
"A true gentleman" Jan Eyvin Wang, president and CEO, Wilh.
Wilhelmsen ASA: “I have had the pleasure of knowing Tsuneda san for nearly 30 years and have worked with him for the last 20, both during his days in WWL as well as EUKOR. He has over the years helped build the company into what it is today. His knowledge, passion and commitment are second to none. He’s a true gentleman in a global competitive environment.” Shigeru Tsuneda was born in Kobe. After graduating from Kyoto University in 1972 in commercial law, he began his career with NYK, where he remained until he joined WWL in 2000 in Newark, New Jersey. Then, following a period as head of the company’s CAT project in Paris, he joined EUKOR in Korea in 2003. He took on his current position as head of WWL’s commercial operations in Japan in 2009. Top: WWL in Japan: Members of Wallenius Wilhelmsen Logistics Japan in front of the Tokyo head office. From left to right are Tomohito Otsu, Car Team; Takahide Maeno, Car Team; Noriko Kuwana, Car Team; Tetsuya Shimamoto, general manager WWL Japan Commercial; Nakamura Noriko, Car Team; Shigeru Tsuneda, president, WWL Japan; Kenichi Yamada, general manager Car Team; Daisuke Nagashima, Car Team; Yukiko Imamura, Car Team and Kentaro Nishikubo, Car Team. HEAD OFFICE: WWL Japan’s commercial operations are headed from the 23rd floor. Taking a break: Tetsuya Shimamoto, general manager WWL Japan Commercial (left) and Shigeru Tsuneda, president WWL Japan.
WWWORLD 1 2012 49
Wilhelmsen Ships Service japan
Tokyo staff: WSS Tokyo send their greetings to colleagues all over the world.
Wilhelmsen Ships Service is big in Japan, with a total of 61 employees based in Tokyo, Yokohama, Kobe and Moji. They have set themselves some very ambitious goals for the next few years. Text and photos: Don Pyle
okyo: General manager Junichi
General manager: General manager Junichi Saito photographed at WSS’ Kobe office
Saito and his management consisting of Gen Takamatsu, (sales manager), Mariko Misawa, (senior customer service coordinator) and finance manager Yasuo Ishida (the latter two both based in Yokohama) have set some ambitious goals for their organisation for the next three years: to grow account sales revenue by 350%. ”This is an aggressive objective,” Gen Takamatsu admits, ”but it is achievable because Wilhelmsen Ships Service (WSS) Japan has a world class sales force across all the business areas and because they are determined to maximize every business opportunity,” he adds. New targets. The main thrust toward ship
operators, charterers and traders is within the dry bulk segment, featuring a solution for cargo hold cleaning. The oil & gas market is targeted with the ships agency offer, while shipyards are targeted with marine products, marine chemicals and ships agency. Revenue from port sales alone has grown by 38% in the period 2008-2011. The number of port calls has grown in line with revenue, from 1,548 in 2008 to 1,725 in 2011. About 50% of deliveries to Japanese customers are made outside Japan, while the remaining 50% are delivered in Japanese ports. This split is somewhat unique. Owner focus: saving money. An ongoing
challenge is that the recession that started in 2008 still affects customer buying behaviour. Many owners are still very focused on saving money: they want cost efficiency. This creates 50 WWWORLD 1 2012
”The best solution in most ports is to use quality sub-agents.” FRS fleet agreement and ships agency business are therefore important because they will generate technical service and agency revenue and are not dependent on shipbuilding activity, Saito says.
Gen Takamatsu: Sales manager, responsible for developing sales in the Japanese market.
Uncertainty about 2014. Katsunori Nakata,
“Our team is motivated to sell, and I am very proud of them. My personal challenge is to understand all the business streams better so that I can be more effective,” says an energetic Gen Takamatsu.
”Our team is motivated to sell, and I am very proud of them.” a big opportunity for Ships Agency Re-defined (SARD) and fleet safety agreements, both of which give documented cost savings. WSS recently signed its first fleet Safety Service agreement with a Japanese principal, Victoria Ship Management covering 25 panamax and capesize bulk carriers and 18 product carriers..
A good business climate. “One of our main
challenges at the moment is to stay focused on delivering first class ships agency services, ” says Takamasa Mori, Ships Agency Operations Manager.
Takamasa says the business climate is good now, with a healthy jump in port calls. The growth is mainly due to the SARD offer, as well as a healthy growth in spot calls. In addition to running ships agency operations, Mori san also provides sales support, going on sales calls with account managers to explain agency operations to customers. “This is an advantage, because each of the 180 ports has its own restrictions and customs. The best solution in most ports is to use quality sub-agents. It would be impossible to maintain 180 port offices,” he says.
Deliveries to newbuilds. General man-
ager Junichi Saito is based in Yokohama but is usually on the move between Yokohama, Tokyo, Kobe and Moji. He is proud of the fact that account sales grew by 6% in 2011 over the previous year, while port sales grew by 10%. WSS Japan delivered initial supplies to 201 newbuilds in 2011, and that momentum is continuing this year. The shipyards are busy through 2013. Several major customers have commented that they are optimistic about the next 12 to 18 months. There is however a cloud of uncertainty about shipbuilding from 2014 onwards. The
account manager is part of the account sales team and handles about 70 customers. 30 of them are in the Kobe and Osaka area; the remainder are on Shikoko and Kjushu Islands. He splits his time about equally between the two groups. One of his main goals this year is to win three safety fleet agreements. He is currently working with two promising cases, he says. He explains that many of his customers have new vessels scheduled for completion in 2012 – 2013, everything from small Handy size ships to Capesize, bulkers, container ships and passenger/ro-ro vessels. He will visit 160 of them this year (he did 140 last year). Nakata confirms what others have said: shipbuilding activity after 2014 is uncertain. Mitsubishi’s Kobe shipyard built its last commercial vessel in March 2012 and is going over to producing submarines. WWWORLD 1 2012 51
On Site WTS AMericas
Wilhelmsen Technical Solutions
Tall orders no problem At well over 6 feet tall, Philip Bannerman, Wilhelmsen Technical Solutions’ new vice president for the Americas, stands head and shoulders above most men. But the shelves stocked with lighting technology, electrical parts and cables in the company’s Ft. Lauderdale, Florida, warehouse dwarf even him, a towering testament to one of the keys to WTS’s ability to compete in the global shipping market. Text: Susannah Nesmith Photos: Joshua Prezant
“It’s the nature of this business that our customers require a fast turnaround”, Bannerman explained. “Customers come to us because we know our market, know our technology and carry a broad inventory of European standard products“. Some 40,000 square feet of the 50,000-square-foot facility in Ft. Lauderdale is dedicated to warehouse space, to support the spares trading business. The remainder of the facility houses electrical, HVAC and refrigeration workshops and provides a home for engineering staff, project managers and regional management. Fast turnaround. Bannerman described a
New leader: Philip Bannerman took over as WTS regional vice president Americas in March this year. 52 WWWORLD 1 2012
recent job, rebuilding the electrical system on a cruise ship following an engine room fire. Shortly after the blaze was extinguished, the ship’s owners were on the phone to WTS. As the ship limped into Singapore, WTS mobilized a large team of technicians and rushed parts to the ship. Within a week, the ship was safely underway to the next embarkation
port while technicians remained onboard to finalize the system repair. A key to the fast turnaround was effective project management, access to a global pool of skilled technicians and the availably of parts. “That’s why we got the call. There are not many companies in our industry that can do that,” Bannerman said. Bannerman, a native of Scotland, was promoted to regional vice president in March, after working for sister company, Wilhelmsen Ships Service for six years in their Houston office. Before that he spent eight years working in Scotland, England and Miami for Unitor Ships Service, which was acquired by Wilhelmsen in 2005. New opportunities. He sees great opportunities to build WTS in the aftermarket, especially within the highly regulated cruise and offshore segments. New regulations relating to safety and emissions present ship and rig operators with new operational challenges. The cruise industry in particular is focused on energy conservation. Bannerman is particularly excited about Wilhelmsen’s Energy Management Technology (EMT) concept WWWORLD 1 2012 53
On Site WTS AMericas
Management on Black Sea tour During one hectic week in late April five Black Sea countries were visited by presidents Thomas Wilhelmsen and Bjørge Grimholt (WWH and WSS respectively), as well as Knut Brathagen and Hege R Solstad from the Dubai regional head office. Text: Hege R Solstad The next day we visited the new WSS office in Tbilisi, met with all staff, and heard the GM give an overview of our business in Georgia, our current operations, and future potential and plans were discussed. We also met with our customer, MSC Georgia, with offices in the same building. WSS has port operations in both Batumi and Poti. In Poti we have an off dock terminal for container handling and storage. After a tour around the terminal, we met with the head of APM terminals and a representative from the Poti regional government. The manager of B&P (a company we own jointly with local partner Pace) took us to see the breakbulk berths we are operating in the port. The day ended in Batumi with dinner with the head of Batumi’s regional government.
Checking: Artie Aparicio tightening up the bolts on a compressor.
Workshop: Front left: Chris Trent / front right: Hans Lindgren / middle: Anthony Gambardella / back left: Marcus Andersson/back right: Rajkumar Thekkoote. They are working on testing and modifying various equipment (breakers and computers/controls systems) Turkey: The guests met a young, competent and ambitious team in Istanbul, and rapidly expanding WSS operations.
Georgia: Guests and hosts. From the left: WSS president Ukraine: WSS employees and guests enjoyed a dinner Bjørge Grimholt, vice president region AMB Knut Brathagen, together, with typical Ukranian food, drinks and entertainpresident WWH Thomas Wilhelmsen, area director WSS Black ment by a group of dancers and singers. Sea & Caspian Hege R Solstad, and Jemal Inaishvili and Joseb Gorgiladze – both WSS Georgia.
Engineering work: Left: Rajkumar Thekkoote / right: Artie Aparicio are reviewing Autocad drawings in the Engineering room.
which is being introduced to the cruise industry. The technology manages energy demand from the HVAC system to reduce the load on power generation systems. “On a cruise ship, a large percentage of energy demand comes from the HVAC system. Even a small improvement can save the cruise operator a lot of money,” he said. Another energy conservation initiative getting cruise industry attention is the introduction of LED lighting technology. In addition to distributing lighting products to the market, WTS provides customers with advice on changeover solutions to the new technology. This advice can be as simple as recommendations on product equivalents or as complex as onboard ship surveys to identify energy saving potential.
54 WWWORLD 1 2012
Tool shop: Artie Aparicio looking for some tools.
An emerging offshore market. Outside
the cruise industry, Bannerman’s focus is firmly set on the offshore market in the Gulf of Mexico and Brazil. Like the cruise industry, the offshore market is facing new regulatory challenges plus a shrinking labor pool. To meet these challenges, the industry is embarking on major rig upgrade programs and increasingly requires the support of skilled industry partners such as WTS. “WTS is already strong in the North Sea offshore market for HVAC projects and we have enjoyed recent success in Mexico and Brazil on electrical and automation projects,” he said. “Brazil in particular is booming although this market presents some unique operational challenges. However, we have an infrastructure in place and we are well positioned to take on further projects.”
WTS has also enjoyed recent success in Brazil with sales of safety systems to the growing local shipbuilding industry. While taking a global view when it comes to strategies for growth, Bannerman also loves to talk about little details that help make WTS competitive. On a recent tour of the Ft. Lauderdale facility, Bannerman pointed out technicians who are usually working aboard ships servicing refrigeration systems. On this day, they were in the workshop reconditioning compressors. “It’s a great way to utilise the technicians because the ships don’t need those immediately so we can stack them up in a queue and the technicians can do it in their down time,” he said. With a vision for global growth, and a careful eye on the details that keep WTS efficient, Bannerman sees great things in the future.
turkey: The purpose of the trip was to give Thomas
and Bjørge a good insight into our businesses in the area, to meet employees, partners, customers and government officials. The trip started with WSS Turkey in Istanbul on April 23rd. We were all very impressed with the dynamic WSS team and the growth in Turkey (see also article on page 59).
Georgia: We arrived at Tbilisi where the general manager and our partner in Georgia, Mr. Jemal Inaishvili, welcomed us and brought us to a meeting with the Minister of Economy and Sustainable Development, Mrs. Vera Kobalia. Georgia offers interesting opportunities for foreign investors, including Norway and Norwegian companies for development in several sectors.
Ukraine: After a visit to MSC Ukraine we headed for our offices where we were met with flowers and sweets, and an introduction around the office before we moved on to presentations by the management. The GM of Wilhelmsen Ship Management Ukraine was also present, and gave a presentation about their operations. Romania and Bulgaria: Our partner in Romania, Mr. Mesut Kafali and our operations managers gave a guided tour of our office building; we met colleagues and had a presentation about local operations. We also visited Barklav (manning office owned 50/50 by WW and Klaveness) before leaving for Varna, where the GM gave us a presentation about the operation in Bulgaria and future plans. In the evening we enjoyed a nice dinner with all our WSS staff, yet another memorable evening to mark the end of our tour of the Black Sea.
Nordic ambassadorshosted Mumbai b usiness dinner Ambassadors from Norway, Sweden, Denmark, Finland and Iceland together hosted the dinner at Trident Hotel in Mumbai on April 30th 2012.
At the ambassadors’ dinner: From left: Jijo Kuriakose, Mrs. Mathew, Mrs. Kuriakose and George Mathew (Consul General, Norwegian Consulate, Mumbai).
India: Representatives from many Nordic firms based in India were present in that get together. Mr. Jijo Kuriakose from Wilhelmsen Procurement Services (Mumbai) attended the dinner. In a short speech, the ambassadors of Norway and Sweden
stressed the Nordic countries’ interest in expanding their business in India. On the same day, seeking investment avenues in the state the delegation of Nordic ambassadors had met Chief Minister of Maharashtra, Prithviraj Chavan, evincing its interest in the development of ports, waterway transport, higher education and the entertainment sector across the state.
WWWORLD 1 2012 55
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
SOS Children’s Villages ➜➜ Works in 133 countries to
support families and help children at risk grow up in a loving home. ➜➜For more than 60 years, they have worked with partners in each community to either help families care for their children or to provide an alternative, for instance an SOS family, in which the love of a carer is essential. ➜➜Presently they have 518 children’s villages around the world. Everything they do is based on the best interests of the child, and each has an individual development plan. ➜➜Uniquely, they provide practical support over the long term, so that each child or young person can develop resilient relationships and face life’s challenges in the future. ➜➜Read more about SOS Children’s Villages at www.sos-barnebyer.no and www.sos-childrensvillages. org HAPPY CHILDREN: The children living in a SOS Children’s Village have a safe home and brighter future.
Our cooperation with SOS Children’s Villages continues with support to programs in India and the Philippines. Text: Bjørg Ekornrud Photo: SOS Children’s Villages children have been given a good start in their lives in Greenfields. The village has 20 family houses for 200 children and a social centre with both a kindergarten and a family programme. In addition, there is a youth facility for 40 teenagers who are preparing for a life outside the village. Since the village was established, there has been almost no renovation and the houses are now in very poor condition. The roofs had leaked during the rainy seasons and caused the steel in the construction to rust. Improvement of the electrical circuit as well as new doors and windows are also necessary. Our contribution will provide the village with a much needed facelift, ensuring the children will have a safe home grow up and a brighter future.
India/The Philippines: Our cooperation with SOS
Children’s Villages started in 2009 with the building of three family houses in the children’s village in Bataan, some 170 kilometres north of Manila, the Philippines. The village is now completed and has become a loving home for 96 children. We will continue to contribute to SOS Children’s Villages in countries where we have activities, and where we are able to work on a long-term basis contributing to building a better life for many children. We see that our support to SOS Children’s Villages not only secures a better future for the individual child but also contributes to developing the society the children live in.
”… children should in a family environment, in an atmosphere of happiness, love and understanding…”
New man in Malta
Obsolete life rafts can still save lives, as demonstrated by our colleagues at Wilhelmsen Ships Service in Turkey.
Bjørn Havnes is the new general manager for Wilhelmsen
life rafts turned in under the Unitor life raft exchange programme were sent to the Van province to provide shelters for the earthquake victims. ‘We later learned that the people of Van welcomed the life rafts as accommodations especially suited for young babies. This because the rafts are wind proof, as compared to the often draughty tents,’ says Irem Gokmen, general manager Turkey for Wilhelmsen Ships Service, adding that she feels very privileged to be able to help, and to have such resourceful people among her staff.
Family programme in Bataan.
The family programme in Bataan is a six-year programme intended to support families UN’s Children Convention at risk of abandoning their children and to encourage families to stay together. SOS Children's Villages therefore works with In the new agreement we have committed to sponsor local authorities and other service providers to support two new programs; the renovation of Greenfields, the families and enable them to take better care of their first children’s village ever built in India, and a family children. programme that is to be started up in the neighbourhood The Bataan family programme will cover four eleof the children’s village in Bataan. ments; education, health, improving the family’s welfare, and increasing their financial resources. At full capacity Renovation of Greenfields. Greenfields was it will support more than 1 100 children. We hope that our built in 1971 and has been the home of orphaned and contribution will have a positive effect on, and contribute vulnerable children for two generations. It is located to the development of the Bataan community. in the Dehli suburb of Faridabad. Over the years, 650
New life for old life rafts Istanbul: In 2011, the inhabitants of the Van province in Eastern Turkey suffered from a devastating earthquake that resulted in the loss of 1000 lives while hundreds of buildings were demolished. Thousands of people including many small children lived on the streets until the municipality could provide them with tents. The survivor’s plight touched the hearts of many, including our colleagues Mintaha Aktan and Cam Darcan. They initiated a both efficient and rather unusual help scheme where obsolete
56 WWWORLD 1 2012
Building a better life
Lines Shipowning Malta (WLSM), succeeding Knut Arnesen from 1 August 2012. Wilhelmsen Lines Malta Ltd and Wilhelmsen Lines Shipowning Malta Ltd were established in 2009, with Rune Loew as first GM. WLSM owns and operates the newest WW vessels, flying the Maltese flag. Currently the fleet consists of six vessels, with two newbuildings being added within 2012, making it a total fleet of eight vessels. Wilhelmsen Lines Malta Ltd. is the operating company that deliv-
ers administrative services to WLSM, and in addition will seek to identify and establish business opportunities on the Mediterranean island nation. Naval architect Bjoern Havnes has worked for the Wilhelmsen group since 1979, and since 1987 in the family owned entity Skips AS Tudor. He is an experienced shipping veteran, with years of expertise in owning and operating vessels, as well as other investments. “I am looking forward to my new and challenging position. I know Malta very well after several visits, and enjoy both the professionalism and culture that characterises the island,” says Bjørn Havnes.
WWWORLD 1 2012 57
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. Our guest this time is IREM GOKMEN, general manager of Wilhelmsen Ships Service Turkey.
Growth at the CROSSROADS Strategically positioned at the crossroads between Asia and Europe, Turkey enjoys a fair share of the business resulting from the 50 000 vessels that each year pass between the Mediterranean and Black Sea. stanbul: As the European Union
I Two future captains? Deck cadets Liza Marie Gaitana (to the left) and Kara Mae Colongan have started on the path to fulfilling their dreams.
The M Tiger girls
Text: Bjørg Ekornrud Photo: Tommy Normann V Tiger/at sea: Liza Marie
The opportunity to travel the world and work with people of other nationalities inspired the two female deck cadets on board MV Tiger to seek a maritime career. 58 WWWORLD 1 2012
Gaitana and Kara Mae Colongan are both from Cebu, the Philippines. They met at the Maritime University of Cebu where they became class mates, roommates and best friends. And now they are colleagues on board one of the world’s largest car carriers. After two years at university, they were qualified as deck cadets and both were chosen by Wilhelmsen Ship Management to become cadets on board a Wilhelmsen ship. As cadets, they will spend the first year on board a vessel before returning to school for one more year. After graduation and passing their exams they will return to WW and sign on as junior 3rd officers for five years.
To fulfil a dream. “I’m the first in my
family to chose a maritime career,’ says Liza Marie. ‘My dream is to one day become a Captain and a good manager for the crew. This is the first step to fulfilling my dream.” In their training they have been learning and trying out all kind of tasks on board,
turkey including assisting in cargo handling, preparing arrival formalities in every port, correcting charts and plot positions and even steering the ship. Both girls emphasize that it is fun to try the different tasks and that Tiger’s Master, Captain Sonjoy Sen, is very supportive. An inspiration to others. It is a male
dominated environment on board a vessel. At the girls’ university level there were only seven girls among the 260 students. “We want to show that we are able to realize our dreams and we want to be an inspiration for girls in coming generations,” say the two cadets. “Being away from family and friends can sometimes be hard. But the crew are like a family and we look after each other,” says Kara Mae. “After eight months on board I am still enjoying life at sea.” On their free time they see movies together, sing and chat. They also enjoy the occasional visit on shore exploring new and exciting places. Every Sunday they pray together, thanking for the opportunity to come on board the good vessel MV Tiger.
and many other parts of the world are facing economical difficulties, Turkey’s financial problems, its tremendous growth. Growth in GDP in 2011 was 8,5%, second only to China. Exports and imports are equally important to Turkey and the Black Sea region. The value of Turkey’s total exports (2011) was USD 135 billion, while the import value was USD 241 billion. Main export partners are Germany, UK, Italy, France and Iraq; main import comes from Russia, Germany, China, USA and Italy. A young team. WSS Turkey’s main strength
is our young and dedicated employees. 80% of our people have been with us since we started as a fully WW-owned operation after the split with local partners in 2006. A main challenge is the competition from low price/low quality suppliers of services, safety equipment, marine products and chemicals offered to the often small local ship owners. However, an increasing number of medium or large Turkish owners have started to look for quality, which gives us a competitive edge. This is illustrated by an increase of 43% in sales to Turkish owners/operators in 2011. On the agency side we face much the same challenges. Many owners have long-standing relationships with a huge number of small, local agencies. As relative newcomers we believe that good relations with local traders and a good ship agency concept will bring us increasing volumes in the future, also on the agency side.
Great opportunities. Of special interest are the increasing offshore activities in Turkish waters. Turkish Petroleum has started explorations in the Black Sea and is now also moving into the Mediterranean. Project cargo represents another opportunity, as 80% of all construction materials and machinery intended for Northern Iraq are transferred via Southern Turkey. What really attracted me to the shipping industry in the first place is that it represents a never-ending learning process. Each new day brings with it new challenges and solutions, bringing with them motivation and an active business life. In WSS, you have to be flexible and open to changes when the company offers you opportunities for further personal growth. Adaptability will be a key word also in the near future, with political as well as financial unrest setting much of the agenda. Estimated growth in 2012 for Turkey is 4 %. Local owners’ order books are still somewhat stable, but predict a dramatic decrease for 2013. Our way of meeting this is through increasing our efforts to ensure that our customers are receiving the quality service and products they are expecting. As a company we are optimistic and ready for new challenges. We will increase focus on competence and know-how, aided by both internal and external training. In the longer perspective our aim is nothing less than to become the reference company in the Turkish maritime industry.
WWWORLD 1 2012 59
Wilh. Wilhelmsen was established as an independent company in 1861 and celebrated its 150th anniversary in 2011. WW World would like to share some of the company’s long and exciting history with its readers. Readers with stories to share or feedback to give are welcome to send an email to firstname.lastname@example.org.
The disaster No event in WW’s 150 years of history has had a greater impact on the organisation than the disaster that struck on Friday 8 September, 1989. Text: Hans Chr. Bangsmoen
orway: Just before 4 pm on Friday 9
September, Partnair’s Metropolitan aircraft departed Oslo Airport with 55 people on board. 50 were employees of Wilhelmsen Lines (WL) bound for Hamburg. At 4.40 pm the aircraft disappeared from the air controllers’ screens. The pilot never sent a Mayday signal. Scandinavia’s biggest air crash was a tragic fact. A huge rescue operation was immediately instigated north of Hirtshals on Jutland, but it did not take long before they realized that there was no hope of finding any survivors. The front section was found at 90 metres below the surface and parts of the plane were spread over a large area. WW was about to take possession of a vessel from the Blohm & Voss shipyard in Hamburg. The MV Topaz was to mark a new start after a very challenging financial period. The employees had worked hard and this trip to the name-giving ceremony was to be a reward for their efforts. The winners lost their lives. The invita-
tions had been decided by drawing lots, so everybody would have an equal chance. The 45 winners were joined by three of the four members of senior management and two ship’s officers. After the disaster, the head office was opened up to next-of-kin, employees and medical staff. The media attention was immense. Regular information meetings – with priests, psychologists and crisis psychiatrists present - were held for employees and relatives for updates on the rescue efforts. The government declared a Day of mourning and a remembrance service was held in Oslo Cathedral in the presence of King Olav and prime minister Gro Harlem Brundtland. The service was sent on national television. The Partnair accident affected us all. Very many of the WW staff participated in
An empty desk: The photo that was taken after the disaster says it all. the intense and self-sacrificing grieving period and made concentrated efforts to help the people who had lost a loved one. They gave their all in this process. A great many people rose to the occasion after the disaster.
“It is a terrible stroke of fate that we who lost the raffle are the ones who are still alive” (Stated by an employee who did not win a trip to Hamburg)
A fantastic will to give. For the manage-
ment of WW it was essential to communicate the fact that WL was going to continue, even with half the staff gone. A temporary organization was set up to operate the organization. Some staff members were relocated, others borrowed from other WW activities and some pensioners were taken in. It was a painful and sad process where many people had to live under heavy strain, both at work and mentally. The company received acclaim for its communication and the way the relatives and next-
of-kin were treated. There was a fine balance between the many grieving people and the press, with the entire nation as an audience. I am convinced that the clear approach to the relatives and the media are founded on our well-defined company culture. Even more than 20 years after the tragedy, the experience is still very much alive for the employees at that time. No other event has marked the organization this strongly. The sculptor Per Ung’s beautiful memorial plaque at the head office is a daily reminder of life’s frailty and how thin the borders are between life and death.