no. 2 2011 – 24th year corporate magazine for the Wilh. Wilhelmsen group
A CELEBRATION TO REMEMBER Special report: South Korea
AN ASIAN MARVEL
The Panama Canal:
12 HOURS ACROSS A CONTINENT
New WSS president:
A MAN FOR ALL SEASONS
A SHAPER IN GOOD SHAPE
The CEO's letter
contents No 2 2011
Published by: Wilh. Wilhelmsen Holding ASA Corporate communications NO-1324 Lysaker, Norway
06 CURRENT AFFAIRS
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 Bjørg Ekornrud Einar Chr Erlingsen Karin T Erlingsen Cecilie A Heavens Gyro AS/Kilian Munch Arild S Johannessen Didier Magallón
Kaia Means Eliécer Navarro Don Pyle Marianne H Wang Aditya Saxena Martin Malmfors Young-Rim Kim
Design and layout: Redink AS www.redink.no Printer: TS Trykk, Printed on paper approved by The Swan, the official Nordic ecolabel CIRCULATION: 8 500 copies Technical Publisher: Forlaget Media AS, NO-3110 TØNSBERG, Norway
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2 WWWORLD 2 2011
08 TWO FANTASTIC EVENINGS Not one of the more than two thousand guests attending the main celebration of WW’s first 150 years will ever forget the magic.
14 PARTIES AROUND THE GLOBE WW’s anniversary was celebrated by employees and guests around the world.
18 BUSINESS OUTLOOK Wilhelmsen Maritime Services is living up to its vision of shaping the maritime service industry, while leaders of its three subsidiaries reveal the main focus areas for the coming year.
26 A MAN FOR ALL SEASONS Meet Bjørge Grimholt, new president of Wilhelmsen Ships Service.
30 THE PANAMA CANAL We follow MV Tamerlane on her latest Panama Canal crossing and also take a look at the canal’s large expansion project.
36 A STRONG REBOUND The shipping and logistics operations in WWASA show a strong rebound in 2011.
38 ‘MAMA WILHELMSEN’ Marianne Fosaas retires after almost 44 years with the company – and will be greatly missed by many of our seafarers.
40 AN ASIAN MARVEL: KOREA Special report from a country that has undergone remarkable development during just one generation – and a close look at WW’s many operations in this important market.
Dear colleagues, friends and customers
2011 has been a very
special and remarkable year. Our 150th anniversary has been celebrated throughout our extensive network. My family and I had the privilege of being present at the celebrations in Norway, with more than 2 000 prominent guests attending a spectacular show. It was two nights I will truly remember. The anniversary has strengthened my admiration for the knowledge and experience our organisation represents today and through its history.
56 THE ENERGY SAVERS The crew on MV Trinidad are among the winners in this year’s Energy Efficiency Competition.
58 NOXCARE Our solution for reducing shipboard emissions of nitrogen oxide is gaining momentum.
Currently, the world yet again experiences financial uncertainties. The European debt crisis has worsened over the last months, and problems will surely prevail in 2012. The world’s leading economy, the United States, is on a very slow path to recovery. It is only the emerging economies in Asia and South America that counterweight what might be a new global economic recession. How our group is affected by the macro economic outlook is described in more detail by group CFO Nils P Dyvik in Current Affairs on page six.
60 PEOPLE&PLACES Stories from WW employees around the world.
62 WW ACADEMY Our in-house academy is taking learning to a new level.
Although the macroeconomic challenges are outside our control, we can both from a corporate and personal level contribute to make us sufficiently strong to meet the challenging times. From a group level we are focusing on securing financial flexibility through mapping potential risks and developing necessary mitigating initiatives. A balanced business portfolio is also key. Being engaged in different segments and with a diversified portfolio make us more robust as a group to weather potential storms.
63 PERFORMANCE APPRAISALS The annual PA process is probably our most important human resources tool.
64 ‘THE WILHELMSEN WAY’ How do we react? We are often faced with moral dilemmas when doing business.
66 YOUNG TALENTS
We are also dependent on each and every one of our some 19 000 employees in the group. If we all work a bit smarter, we as a group will become more profitable. Cost-efficient solutions will benefit both our customers and our company, and it is each and every ones responsibility to prioritise and manage resources in a way that allows us to grow further.
Through the anniversary year I have sensed a strong Wilhelmsen spirit, and I urge all of you to continue developing this spirit, bringing it into your daily work. Although the outlook might seem competitive, our organisation is strong and has the necessary qualifications to succeed going forward. We should utilise the challenges to become even stronger and more profitable. I am looking forward to a new and challenging year where we will maintain and strengthen our position as the shaper of the maritime industry.
Meet two young people who have started as maritime trainees in the WW group.
67 THE WORLD AS I SEE IT Aditya Saxena looks at the world from his Houston perspective.
68 HISTORIC CORNER We remember tough times in the early 1980s.
Thomas Wilhelmsen Group CEO WWWORLD 2 2011 3
Triple award: For the third year running, Wilhelmsen Ships Service won the Bulk Ships Agent award at the prestigious International Bulk Journal awards ceremony on 14 November in Antwerp.
Ship agent of the year – for the second time
Success for Sea Launch
For the second year running, Wilhelmsen Ships Service (WSS) was named Ships Agent of the year 2011 at this year’s Seatrade Middle East & Indian Subcontinent Awards (SMEISA).
Wilhelmsen Ship Management personnel have a big share in Sea Launch’ latest success.
Dubai: This is one of the industry’s most prestigious accolades. As one of the region’s most important events, more than 800 senior shipping and maritime executives attended the event held at The Palm Dubai resort. “To receive this award is a huge honour and I’m delighted on behalf of WSS. Through our Ships Agency Redefined (SARD) offering we are revolutionising the way we manage port calls. Our customers are able to take advantage of a globally-coordinated approach which streamlines and simplifies the process and offers a unique ‘one point of contact’ global system. Our customers services also played an instrumental role in winning the award,” says Nikolai Norman, sales director WSS Region AMB (Asia, Middle East and Black Sea). “The Indian subcontinent is an area that is becoming increasingly influential within the global maritime industry. WSS will continue to work closely with our customers within the region to ensure that we are offering a service which enables them to operate efficiently,” Mr Norman said.
The Pacific: Sea Launch specialises in
shooting up commercial satellites from LP (Launch Platform) Odyssey. The launches are monitored and remote controlled from command ship Sea Launch Commander. Crewing of both vessels is handled by Barber Moss Ship Management, part of Wilhelmsen Ship Management. The successful launch of Eutelsat Communications’ Atlantic Bird 7 satellite took place on 23 September 2011. The 4 600 kg satellite is now positioned in its defined orbit around the earth, where it will operate for an estimated 15 years.
Launch: The Atlantic Bird 7 is on its way towards its orbit around the earth, having just been launched from the platform Odyssey. (Photo: Sea Launch)
Green ship recycling Wilhelmsen Ship Management’s Green Ship Recycling (GSR)
recently reached an important milestone: it was attested by international classification society DNV. The GSR services is offered to socially responsible ship owners who demand a demolition process that offers safe working environment, safe removal and disposal of hazardous materials. WSM was recently also granted membership in the International Ship Recycling Association. ISRA is a group of leading green certified shipyards and companies offering green ship recycling services. Joining ISRA represents a deepening of WSM’s environmental commitment as well as a response to increasing interest in more environmentally defensible ship recycling.
4 WWWORLD 2 2011
1 500 tons
Yarwil, the joint venture between Wilhelmsen Maritime Services and Yara, passed another milestone in October by delivering more than 1 500 tons of NOxCare40 in one month after steadily increasing sales throughout 2011.
Ship agent of the year: The ship agent award was presented by Roy Donaldson, chief operating officer, Topaz Marine (to the right) to WSS regional vice president Knut Brathagen (middle). Also in the photo: managing director, Asia and global sales director Seatrade, Andrew Callaghan (Photo: Seatrade).
Award ceremony: From the left minister of land, transport and maritime affairs Do-Youp Kwon, prime minister Hwang-Sik Kim, EUKOR president and CEO Sjur Galtung, governor of Chungnam province Hee-Jung Ahn and congressman Jang-Sun Jung. (Photo: EUKOR)
Svein Sørlie retires after 28 years in WW Group senior vice president Svein Sørlie (62) will be leaving the WW group at the end of 2011 after a long and prominent career. Norway: With a masters’
degree in naval architecture and marine engineering from the Norwegian University of Science and Technology from 1974, and some years at Det norske Veritas, Svein Sørlie first joined the WW group as project manager for maritime newbuilding projects in 1983. He was soon to take on further responsibilities. In 1985, he agreed to lead the establishment of Barber Ship Management in New York, a company he served as general manager until he was promoted to vice president for Barber Ship Management in Oslo, Norway in 1986. In 1988, he took over as president and CEO of Barber International when his predecessor Erik Kruse retired, a position he held until his present position of group senior vice president marine and regulatory affairs, Wilh. Wilhelmsen Holding in 2004. Under his leadership Barber Ship Management (today: Wilhelmsen
Ship Management) developed from very much an in-house technical department to becoming one of the world’s leading third party ship management companies. Among Svein Sørlie’s boldest decisions was the relocation of Barber’s headquarters from Oslo to Kuala Lumpur, Malaysia in 1994. At that time it was very much a debated decision, but time has proven that it was the correct one. “Almost needless to say, I have found all the challenges I could wish for within WW, and never seen the need to seek them outside the group,” says Sørlie. He has no clear plans as to how he is going to spend his new life: “Up until now there hasn’t been much time besides work for time consuming hobbies. So initially I’ll spend some time thinking about my future and then decide. It will be quite strange indeed to start living a life entirely outside this great company,” he says.
Korean governmental award for EUKOR EUKOR Car Carriers has been awarded the prestigious “Order of Industrial Service Merit” from the Korean government. Korea: On behalf of EUKOR Car Carriers, president
and CEO Sjur Galtung received the award in appreciation of EUKOR’s outstanding contribution to the development of Korean export industry. The award ceremony took place with some 400 distinguished guests,
including the Korean PM, Mr Hwang-Sik Kim gathered at PIRT (Pyeongtaek International Ro-Ro Terminal) to celebrate the completion of the second phase of this enormous port development project. PIRT is jointly owned by EUKOR and Wallenius Wilhelmsen Logistics.
WWWORLD 2 2011 5
current affairs long term strategy: The Wilhelmsen group will continue to invest in and develop new activities primarily related to the maritime industry. In the picture WW and OW vessles in Bremerhaven.
STRATEGIST: Nils Petter Dyvik, group chief financial officer in Wilh. Wilhelmsen Holding ASA. (Photo: Kaia Means)
Beyond borders – exploring new opportunities
As the parent company, Wilh. Wilhelmsen Holding (WWH) has high ambition levels for growth, profitability and development of the group. WWH will, through its two main subsidiaries Wilhelmsen Maritime Services and Wilh. Wilhelmsen ASA, be a market leader in ro-ro shipping and logistics and maritime services. But as a long term strategy, WWH will also invest in and develop new activities primarily related to the maritime industry. Text: Nils Petter Dyvik, group chief financial officer
6 WWWORLD 2 2011
he group’s vision is “Shaping the maritime industry”. The vision implicates that we dare to go one step further, and continuously explore new opportunities. At the end of 2011 the world’s global economy is in transition. The European Union is facing a recession, fuelled by the debt crisis affecting all member countries. USA is still struggling in the aftermath of the financial crisis of 2009, while emerging economies like China, Brazil, India and South Korea are entering centre stage. Shipping represents the vascular system of global trade, transporting cargo between continents and countries. The shift in the global economy from the Western hemisphere to Asia and the BRIC-countries, affects shipping to a large extent. That represents a challenge for WW as well, but also many opportunities. We are strategically well positioned. The group has a diversified portfolio and is well
positioned to operate in a competitive environment. Within our shipping and logistics segment, the group takes benefit from our global sailing pattern, new more efficient tonnage and a healthy cargo mix. In the coming years we fill focus on our core business in the shipping and maritime services segments. But we will also look ahead. A key tool in a further diversified portfolio is the establishment of the new company Wilh. Wilhelmsen Invest AS (WWHI). WWHI is currently owner of our investment in the Australian logistics provider Qube Logistics Holding Ltd, a public company quoted at the Sydney Stock Exchange. The investment recorded in the third quarter of 2011 a USD 70.4 million gain on sale of the Qube/Kaplan related investments in exchange for 88 million shares in Qube. WWHI is the second largest shareholder in Qube, with approximately 11% of the shares. Through the WW history we have been
in shipping and maritime services segment, and lately in related logistics infrastructure ashore. In the future WWHI will explore new opportunities within the energy-, offshore- and maritime industry. There is a wide range of possibilities for those who dare to go beyond borders. At the same time WWH as the parent company will have a conservative financial approach while maintaining a healthy dividend payout.
The group has a diversified portfolioand is well positioned to operate in a competitive environment WWWORLD 2 2011 7
Wilh. Wilhelmsen 150 years
An evening filled with precious MOMENTS
‘Welcome to the future – and to the past!’ Celebrating Wilh. Wilhelmsen’s 150 years at the Oslo Opera house was an unforgettable event for all the two thousand guests. Text: Einar Chr Erlingsen/Arild S Johannessen Photos: Gyro AS/Kilian Munch
8 WWWORLD 2 2011
WWWORLD 2 2011 9
Wilh. Wilhelmsen 150 years
orway: The stage at Oslo’s landmark Opera House was set for a fantastic voyage. Set against a backdrop of a ship’s bridge anno 2025, the future ship “Tomorrow” and Captain Jack (actor Kåre Conradi) welcomed the audience and reporter Rose (artist Haddy N'jie) on board for a voyage through 150 years and more of WW history; past, present and future. The atmosphere in the audience was mellow and expectant, after a couple of hours of splendid wining and dining (stand-up buffet) and socialising in the opera lobby prior to the show.
The royals: Their Majesties King Harald and Queen Sonja of Norway have arrived and are escorted by Wilhelm and Thomas Wilhelmsen.
Two nights running. As the Oslo Opera
House can accommodate around 1 200 people at one seating, the celebrations continued for two evenings. Customers, suppliers and special guests were invited for Friday 30 September, employees and retirees on Saturday 1 October. Among the fortunate passengers on Friday night were royals (King Harald and Queen Sonja of Norway), one government minister, high-ranking officials of business partners, customers and suppliers. If the voyage had a guiding star it was the quest for that well known, but elusive Wilhelmsen Spirit, so well founded in our organisation, yet still difficult to define in mere words. The audience were welcomed by fourth and fifth owner generations, Wilhelm and Thomas Wilhelmsen respectively. Then the stage was set – and what a stage it was! Captain Jack and reporter Rose appeared on a futuristic ship’s bridge with the wash from a ship leaving Sidney harbour as a live backdrop. On panels on each side were instruments that measured the effect and balance between Tomorrow’s only means of propulsion; wind, waves and solar energy. Past and present. With the backdrop constantly changing between sea and sky, storm and rain, sunny days and quiet nights the voyage continued through places and times. We met people from past and present (including quite a number of the 150 Moments entries from employees all over the world), and we were taken through highs and lows of company history, accompanied by choir song, ballet and music. 10 WWWORLD 2 2011
PARTY FACTOR: After the show, it was time to shake loose on the dance floor. Here are some party girls from Wilhelmsen Chemicals.
Family and friends: The Wilhelmsen family together with distinguished guests from Bahrain and Oman. From left Ninni Wilhelmsen, Raja Alshakar, Dr. Tawfeeq Almoayed, Wilhelm Wilhelmsen, Anwar Sultan, Khalid Almoayed, Thomas Wilhelmsen and Pernille Wilhelmsen.
VETERANS: The old generation was a visible part of the anniversary.
party crowd: Enjoying music and wine in the opera lobby.
gathering in the lobby: Welcome speech by Diderik Schnitler, chair of the board in Wilh. Wilhemsen Holding ASA.
singer: Top entertainers performed for the guests. WWWORLD 2 2011 11
Wilh. Wilhelmsen 150 years
We are in a people business, and I have had the pleasure of meeting many of you from all over the world. I am always impressed by the experience, professionalism and dedication I find in WW people! Thomas Wilhelmsen Our guides: Captain Jack (Kåre Conradi) and reporter Rose (Haddy N'jie) were our guides on Future Ship Tomorrow’s voyage through times and places.
The voyage took us to the little Norwegian coastal town of Tønsberg, where Morten Wilhelm Wilhelmsen founded the company back in 1861. Moving onwards we were presented with the very first WW vessel, the sailing barque Mathilde, and Talabot, the first steamship that became such a success that it instigated the “T”naming tradition. We followed company and people through two world wars, and through the 1989 Partnair accident when WW lost 50 of its employees in a tragic air crash. Dramatic highlights. Among the dramatic highlights was an interview with chief officer Magnus Bergman, who was on board MV Tricolor when she was rammed and sank in the English Channel on a December night in 2003. And we met captain Arne Rinnan, who carved out his own place in maritime history when his ship MV Tampa rescued 438 shipwrecked people off the Australian Christmas Island in 2001 and was denied entry by the authorities. As a result, the Tampa incident made world headlines for nine days running before a solution was found. Captain Jack and reporter Rose were our competent guides throughout the voyage, explaining, commenting and sometimes even frisking FS Tomorrow herself for answers. As a so-called intelligent ship, Tomorrow naturally had her own opinions, even flirting on occasion. A surprising destination. So where did it
take us in the end, this quest for the Wilhelmsen Spirit? To quite a surprising destination, actually. At the end of the show the cameras were directed onto the audience, who suddenly could see themselves on the gigantic screen. For the Wilhelmsen Spirit is really about people, as expressed by Thomas Wilhelmsen: “We are in a people business, and I have had the pleasure of meeting many of you from all over the world. I am always impressed by the experience, professionalism and dedication I find in WW people! Without you and those who came before you, there would be no WW today. That is a lot to be grateful for. Wherever you are and whatever your job, please remember that what you do in your day-to-day work is important and leaves a mark. Let’s look forward to our next 150 years of growth and prosperity.”
12 WWWORLD 2 2011
A touching moment: The choir Oslo Soul Children dressed in Wilhelmsen T-shirts touched everyone present.
Grand opening: The Opera Choir and musicians share the stage with WW colleagues of the past.
HIGH FIVE: Wilhelm and Thomas Wilhelmsen set the stage for the anniversary celebration, in their open and honest welcome speech.
The stage is set: The fantastic voyage through past, present and future is about to commence.
PARTNERS: Jonas Kleberg, CEO Soya group (left) with Yukito Higaki and Tom Kinoshita from Imbari Shipping. To the right Shigeru Tsuneda, head of WWL in Japan.
Grand gift from partner Wallenius Norway: Among the many gifts received
by the 150 years celebrant, the most unusual one came from business partner Wallenius: a propeller and a small ship model. The propeller originates from Wallenius’ very first newbuilding, M/V Soya III, built in 1936 and sold in 1940. This could have been the end of the story, but in the early 1990´s she was found at one of the quays in Stockholm and repurchased. After extensive repairs she once again sails for the original owner, nowadays as their in-house conference and reception vessel. The propeller that was given to Wilh. Wilhelmsen in commemoration of our 150th anniversary is proudly displayed in the board room of the corporate headquarters in Oslo – as the adjoining propeller shaft is displayed at the Wallenius head office in Stockholm. “These two parts can only function together, which is our way of honouring a very good and fruitful cooperation,” says Cecilia Kolga, head of communications at Soya Group.
WWWORLD 2 2011 13
Wilh. Wilhelmsen 150 years
Celebrations all over the world With “business as usual”, not everyone in the Wilhelmsen network of companies were able to come to Oslo to celebrate. This did not prevent anyone from taking part in the fun, however, with lots of parties, customer events and celebrations around the globe! India: The main focus of Wilhelmsen Ship Management’sannual Diwali party this year was of course the Wilh. Wilhelmsen 150th anniversary celebrations. Lots of fun for everyone, it seems.
14 WWWORLD 2 2011
Singapore: Wilhelmsen Ships Service combined the 150 Japan: Wilhelmsen Technical Solutions and Wilhelmsen years anniversary celebrations with their annual dinner and Ships Service’ Kobe branches joined forces to celebrate in an excellent mood. dance on October 8 – in very good spirits!
South America: There were local celebrations throughout our South American network, including in Rio, Santos, Sao Luis, Bue and Vitoria in Brazil.
Korea: Our colleagues in Korea organised two events to celebrate; one for employees, the other one for customers and friends of the company. Our photo is from the inhouse celebration, and demonstrates an inventive way of showing teamwork within the organisation.
Hong Kong: Wilhelmsen Ships Service organised a customer function at a rugby match. The WSS Hong Kong team made sure that the 40 000 spectators at the stadium all know that this is a year for celebrations. Skål for Wilhelmsen!
Finland: Wilhelmsen Ships Service Finland invited customers to an open house to try welding and plasma cutting with their own hands. Enjoying the buffet are Sari Helenius, Pålle Björklund from POB Tech, Acke Ekström Hannu Tilli.
Belgium: One km of cycling for each year of WW’s existence: a challenge for our Wilhelmsen Ships Service colleagues. Regardless of terrible weather, the participants demonstrated the same dedication that they show every day in ensuring the best possible service for their customers!
Switzerland: Important guests participating at the first Swiss Wilhelmsen Ships Service event celebrating WW’s 150 years anniversary. From the left: Andrey Voronin, Gaston Kirby and Maria Khazanova from customer Trafigura Geneva, with Kate Klimovskih, WSS sales support.
Egypt: Alexandria is a very important location for Wilhelmsen Ships Service, as demonstrated by the many colleagues celebrating the 150 years. As the weather is (almost) always sunny and stable, they opted for an outdoor dinner.
Qatar: More than 100 guests including Wilhelmsen Ships Service personnel, customers and service providers gathered to enjoy a lavish buffet dinner at he Doha Seaf Hotel. The celebrations took place in high spirits.
Russia: All set for celebrations and a good time in Novorossiysk. From the left: Natalya Kalmova, crew coordinator; Vadim Korenev, general manager, Violetta Borisova, operations manager, and Evgenya Rudenko, crew coordinator.
South Africa: Our colleagues at Wilhelmsen Ships Service in Durban were really creative in showing their products (chemicals, cylinders and life rafts) to their customers as part of their 150 years anniversary celebrations.
Malaysia: Wilhelm sen Asset Care, Labu an celebrated the an followed by games and entertainment. niversar y at the beac More than 150 peop le attended – includ h side with a barbeque party ing these lovely youn gsters.
WWWORLD 2 2011 15
Wilh. Wilhelmsen 150 years
WILH. WILHEL MSEN
150 years F l e e t l i s t and a Brief History
ELMSE WILH. WILH
was just 22 town, when the founder the , Norway’s oldest own business under IN 1861 IN tøNSBErg young to run his It aLL BEgaN was therefore too Wilhelm Wilhelmsen years old. Morten that little difficulty. on a history as one he found a way around – can look back laws of the day, but Wilhelmsen – WW century and a fifty years later, Wilh seven seas over this One hundred and It has sailed all the shipping companies. brand. of Norway’s largestever player and maritime have created a as a very strong global Chr. Bangsmoen Hans and half, and ranks today is Bård Kolltveit source. the reader history, authors In this anniversary archives as their principal from the company’s own sail to steam and of reference with various eras – from substantial work times and bad through car carriers. with WW in good roro, container and taken on a voyage via liner trades to written sources and from tramp shipping ence, reports and steam to diesel oil, at wide range. Correspond and business contacts the stories span a s from employees Both the history and d by observation well as ship’s boys have been supplemente when captains as of various kinds evoke amusement is assured the stories. they add spice to the tale. voices, and gripping various levels which es. Many are the reminiscenc contribute their personal respect and reflection. book. gravity and laughter, of their own to the add a dimension past while making to the company’s the numerous illustrations and stories does justice 150 years – history Wilh Wilhelmsen history. shipping to Norwegian a significant contribution
year s ry
H i s to es a n d s to r i
150 yea History
Bård Kolltveit /
ries and sto
Hans Chr. Bangsmo
198793. a large number as the author of and articles as of books, monographs speaking engagements, well as extensive Norway’s most Kolltveit is one of historians. His productive maritime fruitful combination work represents a search, a popular of professional re and a lifelong presentational style shipping. and ships in interest
(b 1943) Hans Chr. Bangsmoen ool teacher graduated as a secondaryschwith of Oslo from the University among his Norwegian and history in Wilh Wilhelmsen subjects. He joined head of public affairs 1971 and was its responsible for the from 1975 to 2005, and external commu company’s internal relations. He nication and government as project manager served subsequently until 2011. and senior adviser in demand as a Bangsmoen is much activities include speaker, and his other during the 1994 serving as press manager was in Lillehammer. He winter Olympics manager of the voted “public affairs of the Partnair year” for his handling lost 50 of its employees affair, when WW Nordic air disaster. in the largestever
Creating enthusiasm in the global organisation
Wilhelmsen’s first venture into social media turned out to be a great success with employees from all over the world enthusiastically sharing their favourite Moments. Text: Marianne H Wang Norway: One of the main pillars in
Happy winners: Wilhelm Wilhelmsen with 150 Moments winners Aik-Keng Tan, Malaysia and Aaron D'Silva, cadet on MV Tijuca. (Photo: Don Pyle)
Moments to remember ”A fantastic experience. This is something I will remember for the rest of my life,” said Bineesh Palapetty from Dubai, one of the ten ‘moments’ winners who were specially invited to the Oslo celebrations. orway: Bineesh Palapetty works
for Wilhelmsen Ships Service Dubai as assistant IT manager. His entry ‘10 years tenure with 10 million moments’ was voted best liked moment among the 1 000 plus entries from WW employees all over the world. That earned him a ticket to the Oslo anniversary celebrations together with nine other winners. They all had a great time, including a visit 16 WWWORLD 2 2011
to the WW headquarters, and of course, the main celebrations at the Oslo Opera House on 1 October. “I would like to thank the 150 Moments team for giving us this wonderful opportunity to be part of the anniversary celebration. This was a great occasion for all Wilhelmsen employees to share their moments and get to know each other,” says Palapetty on behalf of himself and the other winners.
The winners ➜➜Adam Puscion, MV Tijuca ➜➜Sidney Silva, WSS Brazil ➜➜John-Gunnar Tobru, Wilservice ➜➜Arnold Paredes, MV Torino ➜➜Aaron D’Silva, MV Tijuca ➜➜Sheila Jacobs, WSS Fujairah ➜➜Jan Cuyt, WSS Belgium ➜➜Kari Ellen Stubberud, WWH Oslo ➜➜Aik-Kang Tan, WSS Malaysia ➜➜Bineesh Palapety, WSS Dubai
the 150 Year celebration concept was the desire to involve and to create enthusiasm throughout the Wilhelmsen group. We wanted the organisation to take pride in this fact and actively participate. The idea to set up a social media web site where all employees could contribute their stories and share their favourite Wilhelmsen Moments was born. In October 2010, a project group of five persons discussed how to create, maintain and govern such a social media platform. From Wilhelmsen, IT engineer Jan Robert Østensen, Internet manager Stacey Trodal and Intranet manager Marianne H Wang worked together with two dedicated representatives from our external event organiser, Gyro. It was to be based on a Facebook approach where WW employees could share stories, images and even videos. Everyone could ‘like’ or comment on the Moments uploaded, and each month, the 20 Moments with the most ‘likes’ was to win a prize. The top three prizes were iPads and the next 17 were to receive a 150 Moments digital camera, the total sum of prizes was of course – 150! The response. Before the launch of the web site on 10 January 2011, the project group was very uncertain of the reception, since this was the first time anything like this had ever been attempted. But already from day one, the 150 Moments team was overwhelmed by the response. By the end of January, more than 400 Moments had been uploaded, and by the end of September when the competition ended, the site contained more than 1 050 Moments – giving us a unique insight into our global organisation and what it is like to work for Wilhelmsen around the world. All in all the web site was visited 112 800 times, and some 3.6 million pages were viewed from all over the world. The majority of users came from Egypt, India, Malaysia, Norway and USA; actually we had visitors from 83 countries!
(b 1942) has an Ma Bård Kolltveit of Bergen, majoring from the University with the Norwegian in history. He was from 1970 until his Maritime Museum serving as curator, retirement in 2007, and head of research. museum director of the International He was president Museums in Congress of Maritime
Lessons learned ➜➜The enthusiasm in the organisation was beyond
our wildest dreams - a huge ‘thank you!’ to all who participated and made this a success! ➜➜We noticed some cultural differences, both in the focus of the Moments uploaded (team pictures vs individual Moments) and that some used this media to upload their private moments as well as Wilhelmsen Moments ➜➜The competition was very popular, and especially the chance to win an iPad. As a result, some got a bit carried away and campaigned eagerly to get votes for their Moments ➜➜Social media is a great way to create unity and common identity in our large group of companies. Challenge. How do we keep the momentum going in 2012? We are currently looking into ways of keeping all the fantastic Moments received for the future. But we would love to get your suggestions on how we can continue this success in 2012!
Best liked: The all time most liked Moment award was given to Bineesh Palapetty, assistant IT manager for Wilhelmsen Ships Service in Dubai. His Moment won with 454 ‘likes’. Bineesh’s Moment was a collage of photos: “10 years with 10 million moments!”
History and stories Our 150 years anniversary history book has been received with great acclaim from WW group employees and external relations alike. Text: Bjørg Ekornrud Norway: The new company history book and an updated fleet list were both published in September, just in time for the company's 150th anniversary. This is the company’s third history book. The first was published in time for the 100 years anniversary; the second after 125 years. While the first book concentrated on ‘steel and money’, the second was mostly focused on the many colourful company personalities over the years. In this new book, the readers are taken on a WW voyage through good times and bad. It also includes the good stories evoking gravity and laughter, respect and reflection. The book has received very positive reviews in the Norwegian press, including media nestor Kåre Valebrokk. This is from his review in Aftenposten, Norway’s leading newspaper: “The book is a ray of sunshine in a world of boring company histories. Run and buy it, as they say in TV commercials.” Global distribution. The company history book has been published in both Norwegian and English; the fleet list in English only. Both books were printed in 5 000 copies. All offices and WW vessels have each received one copy of the book with a greeting from the group CEO. In addition, all WW group employees on sea and land with an interest in the book have been offered one copy each. The anniversary book was also used as a commemorative gift for guests attending the anniversary party at the Oslo Opera House. So far, about 3 800 Norwegian and 4 200 English history books and 3 600 fleet lists have been distributed to offices, vessels, employees and external relations. The book is for sale in Norwegian bookstores and approximately 250 books have been sold so far.
WWWORLD 2 2011 17
WILHELMSEN MARITIME SERVICES
A SHAPER IN
Wilhelmsen Maritime Services is living up to its vision of ‘shaping the maritime service industry’. WW World spoke with president and CEO Dag Schjerven and senior vice president and CFO Mette U Bakke as well as the business areas and asked the question: What are your main priorities for 2012? Text and photo: Kaia Means
The first focus is of course the customer
orway: In the seven years since
Wilhelmsen Maritime Services (WMS) saw the light of day, the company has experienced exceptional growth. Its 2005 revenue of USD 100 million grew to USD 1 billion by 2008. After the financial crisis at the end of that year, revenue subsequently declined by about 15 per cent, but it has since picked up again, leading WMS very nearly back to the USD 1 billion mark. “We reached our financial goals four years running, from 2007 to 2010,” says Dag Schjerven. “But 2011 is a challenging year,” he says, citing unfavourable currency fluctuations, political turmoil in the Middle East, increased costs and unused capacity as the most forceful negative factors. The operating profit fell from its 9-10 per cent level to below 5 per cent at its lowest point in 2011. First priority. “We have many different ar-
Four ‘C’s’: By focusing on Customers, Cost, Cash and Choice Wilhelmsen Maritime Services aims at regaining its profitability in a demanding market, according to president and CEO Dag Schjerven and senior VP and CFO Mette U Bakke. 18 WWWORLD 2 2011
eas that we want to focus on for our long term strategy that will put us where we want to be in 2016,” says Mette U Bakke. “But we can’t do everything at once. So for next year we need to focus on regaining our profitability,” she says. In 2012 each of the business areas will create various initiatives, all focusing on this goal by concentrating on the ‘four C’s’. “The first focus is of course the customer,” says Schjerven. “We have to understand the customers’ needs and become more effective to lift the top line and increase sales,” he says. The second C is for ‘cost’ – and 2012 will see initiatives in all business areas focusing on implementing industry best practice, improving planning and reducing costs. The third C is for ‘cash.’ All business areas will focus on customer credit and prompt debt collection, in addition to full support to cash management and ownership to currency exposure risk.
The final C is for ‘choice’ – which refers to making the correct choices for products and services in the market. “We have invested in new products in the last couple of years,” says Bakke. “We have to make sure that they are meeting their potential for profitability.” Market share. Of course, the develop-
ment in the global economy is an important parameter for our potential for growth in 2012. But independently of outside factors, our market share can increase in several ways. Outperforming our competitors is the most obvious way. Another way to grow is to buy other companies, which is constantly
growth of its first seven years. “Our biggest strength is our global reach, with 400 offices in 71 countries. Nobody has a larger maritime network in the industry. We sell our products and services to all types of ships, which makes us less vulnerable in changing markets. We are robust, and can stand negative trends. That’s why we only lost 15 per cent of our revenue after the financial crisis,” says Schjerven. Currently WMS has some 20 per cent of its revenue from the newbuild market and 80 per cent from sailing ships. It is important to keep that ratio somewhat steady, as the newbuild market is more cyclical and more vulnerable to a downturn in the global economy.
Our biggest strength is our global reach, with 400 offices in 71 countries. Nobody has a larger maritime network in the industry being evaluated. And a third way to grow is through innovation, bringing new products and services to the market. Areas that show large potential for growth are products and services related to safety and environmental regulations. “Just ballast water treatment could translate into an annual USD 2 to 3 billion market that hasn’t existed before,” says Schjerven. “In WMS, it’s a great advantage to be owned by a shipowner such as WW, because they want to be at the forefront of these areas. They’re more than willing to look at new solutions and test them with us,” he says. Robust. Schjerven and Bakke believe WMS
is well positioned to continue the successful
Control of liquidity. One of the projects
of 2011 that will continue into 2012 is the creation of global cash pools, ensuring that we have control of our liquidity. Every region has a system that gives full insight into and control of liquid assets. “We are streamlining everything into one system,” says Bakke. “It means that we have one overview, we have easy access, we can pay dividend to the parent company, ensure liquidity for our subsidiaries and distribute the funds to where they are needed. It gives us more flexibility,” she says. This year, we also refinanced our long term loans at preferable terms. “We have secured our financial stability with this, and we also have room to grow,” says Bakke.
WWWORLD 2 2011 19
BUSINESS OUTLOOK Advanced vessel 2: Seismic vessel Geo Caribbean.
WILHELMSEN SHIP MANAGEMENT
HIGH LEVEL OF
Advanced vessel 1: Seismic vessel Ramform Vanguard, owners PGS.
Advanced vessels, whether they are highly specialised LNG’s, seismic vessels or sea launch vessels for communications satellites, demand a higher level of expertise and technical knowledge from the crew. Wilhelmsen Ship Management (WSM) is focusing on training and operating advanced vessels as one of several key areas of growth for 2012. Text and photo: Kaia Means
Advanced vessel 3: Cable layer Nexans Skagerrak. orway: One of WSM’s areas
of business development for 2012 is operating advanced vessels. This includes LNG’s (liquid natural gas) and offshore vessels from segments like seismic, well stimulation and cable layers. “Our organisation is experienced in handling complex requirements, and this gives us an advantage toward customers in the advanced segments,” says Håkon Lenz, general manager WSM Norway, who emphasises transparency. “You have to have an ‘open book’ policy – where everything you do is transparent. We publish our operation parameters, and all the statistics are there for our customers to see. It shows that we perform to high standards,” says Lenz. Drawing on the network. Lenz also
emphasises the importance of being a part of a large company with an experienced and competent network that WSM can draw upon. For instance, the capacity to support vessel owners with newbuilding expertise has proven 20 WWWORLD 2 2011
to be very valuable as ship managers. “When we succeed at these types of operations, we’re fulfilling tough requirements from demanding customers,” says Dag Silkoset, WSM training and competence development manager. WSM Norway currently has on full technical management 13 LNG’s, including lay-up vessels and FSRU’s (floating storage regasification units), 13 offshore vessels, including seismic, two sea launch vessels, one cable layer and one well stimulation vessel. All of these ships are categorised as advanced vessels. WSM crew for advanced vessels is comprised in total of approximately 500 employees.
The customers of advanced vessels are major players in their industries, such as Golar, PGS and Fugro. “They are solid companies that have been in the market for many years, and they are very good customers. When we deliver as promised, or more, they tend to be quite generous in return,” says Silkoset. The smooth operation of each vessel is vital, and aberrations can in some cases have an immediate effect on the share price of the company. With advanced vessels, and in particular offshore vessels, the cost of an off-hire can be as much as USD 250 000 per day.
Newbuildings. The joint venture Golar
two different crews onboard, the maritime crew that is responsible for the ship operations, and the engineering crew responsible for the seismic equipment. The ship’s maritime crew needs specialised training to work in close cooperation with the seismic engineers. For example, the ship delivers electricity to power all systems, including the seismic equipment. Power failures can have severe consequences for the seismic equipment.
Wilhelmsen Management (GWM) will increase its fleet with eight newbuildings, and by 2014 GWM will crew 21 LNG and FSRU vessels. The newbuldings will be technically advanced vessels with diesel electric propulsion systems. “It’s very challenging for our crews to work on these vessels, and the positions there are in high demand,” says Silkoset.
Seismic. On seismic vessels, there are in effect
“One of the challenges that we have, is to make sure that all of the training is suited particularly to the vessel and its onboard equipment and systems,” says Silkoset. The systems that call for specialised crew training are not set up generically, so the suppliers need to provide training by
‘Open book’ policy: “Everything we do is transparent. We publish our operation parameters, and all the statistics are there for our customers to see,” says general manager Håkon Lenz, WSM Norway (to the left) and Dag Silkoset, WSM training and competence development manager. usually not part of earlier maritime education. WSM crew’s ability to do repairs on the spot will make the difference between off-hire or not. It is here that good training really makes a difference. Challenges onboard can be issues relating
WSM Norway currently has on full technical management 13 LNG’s, 13 offshore vessels, including seismic, two sea launch vessels, one cable layer and one well stimulation vessel people who are familiar with the existing setup on each vessel. Repairs. Crews need to be able to monitor,
check, change spare parts and possibly repair or replace equipment that is malfunctioning. Often this equipment is electronically governed. The expertise needed to maintain high-tech equipment must be based on engineering principles that were
to the different cultures of the two crews, who come from different backgrounds. When rocket engineers on sea launch vessels and the maritime crew work together, they must find systems that suit both. “It is very challenging work, sometimes so challenging that it hurts!” says Dag Silkoset. “But that’s why the accomplishments are also so satisfying.”
Wilhelmsen Ship Management ➜➜WSM is one of the world’s largest providers of
third-party ship management services and has an extensive range of solutions to all vessel segments on a global level. ➜➜Ship management services include: technical management, crew management, green ship recycling, green passport (IHM), newbuilding/conversion consultancy, marine insurance, commercial management, maritime training and IT solutions. ➜➜WSM has its head office in Kuala Lumpur, with management offices in Oslo, Southampton, Houston, Singapore and Busan. ➜➜WSM provides crew or/and technical management to more than 400 vessels, including ro-ro vessels, container ships, bulk carriers, car carriers, seismic ships, LNG and LPG vessels, product tankers, offshore supply ships, passenger vessels and specialised vessels. ➜➜More than 9 000 seafarers are working for WSM in their global crewing network.
WWWORLD 2 2011 21
We realise that customers have a choice. We need to keep innovating to lead the market Graham Hunter, WSS business director Marine Chemicals
orway: The integration of the Nalfleet and Unitor product lines is one of the most important developments in WSS for the next year. All of the water treatment chemicals will now be branded under the Nalfleet name, and the rest of the product line will be branded under the Unitor name – two well-known and trusted names in the market. Where the companies previously made two different versions of chemicals with the same function, only one will continue to be produced. “It will be a combined offering where the customers will get the best of the best,” says Graham Hunter, WSS business director Marine Chemicals. “We aim to be the supplier of choice.” All of the chemicals are now being produced at the same location, the Wilhelmsen Chemicals factory just outside Tønsberg in Norway. The manufacturing is regulated by one of the strictest safety and environmental legislations in the world. Production and quality control is standardised for both product lines.
products, or by customer not knowing which product to use. Correct use can translate to immediate reduction in costs. WSS now offers the Nalfleet metering and measuring equipment, which reduces manual handling of chemicals through automated dosing. “You can lose a lot more money through equipment failure than any chemical costs,” says Hunter. On LNG ships, with high pressure boilers that need expert use of chemicals, one day off-hire can be worth several years of chemical costs. Similarly, poor application of cleaning chemicals for the holds of a bulk carrier can result in costly off hire costs while the work has to be redone to the surveyor’s satisfaction.
Combined strengths: “It will be a combined offering where the customers will get the best of the best,” says Graham Hunter, WSS business director Marine Chemicals.
Customer support. “A key element of the
WILHELMSEN SHIPS SERVICE
FIRST CHOICE IN CHEMICALS With the acquisition of Nalfleet this year, Wilhelmsen Ships Service (WSS) is by far the world’s market leader in marine chemicals. While streamlining the Unitor and Nalfleet brand names and products offered, and with a renewed focus on customer service, WSS is looking forward to 2012. Text and photo: Kaia Means 22 WWWORLD 2 2011
launching of the new product lines is a focus on customer support,” says Hunter, who was general manager of Nalfleet from 1999 until it was acquired by WSS in 2011. “Nalfleet has a history of strength in technical knowledge, and WSS has its strength in the logistics network. We’re bringing these two strengths together,” he says. “We are training people to understand both ranges of products, and revitalising the technical knowledge within the company to support the customer better. Customer support is a key element of any expansion,” he says. Resources can be wasted by poor use of
Wilhelmsen Ships Service WSS is the world's leading maritime services provider, with the capacity to service 2 200 ports in 125 countries. Its focus is to deliver improved vessel operating efficiency to the merchant fleet. Last year WSS made 214 000 product deliveries to 23 000 vessels and handled 54 000 port calls. WSS supplies Unitor and Nalfleet marine products, technical services, ships agency services and maritime logistics. The company has 4 400 employees operating out of 350 offices in 71 countries.
New technology. As part of the acquisition agreement with Nalfleet’s previous parent company Nalco, WSS has access to suitable technology developed by the Nalco R&D, and are in regular meetings with them. Wilhelmsen Chemicals has a skilled team of scientists based at the R&D laboratory outside Tønsberg. Although WSS is the largest producer of marine chemicals in the world, innovation is still the prime goal. “It’s not only about size,” says Hunter about the integration of the Unitor and Nalfleet offerings. “It’s about going in a new direction.” “We realise that customers have a choice. We need to keep innovating to lead the market,” says Hunter. WSS focuses on actively involving customers in a dialogue to find new solutions to their chemical needs, something that is especially important when they see new legislation coming their way. Waste water, tank and cargo hold cleaning and fuel additives are some areas where he sees a potential for growth. “We’re looking for new areas of growth, new technology and new opportunities,” says Hunter. WWWORLD 2 2011 23
wilhelmsen Technical Solutions
Wilhelmsen Technical Solutions (WTS) has several key areas of focus for 2012, including safety, ballast water treatment and HVAC solutions for the offshore sector. One area that has a great potential for growth next year is our proprietary energy management technology solution, CallenbergEMT, which is currently being installed on Cunard’s Queen Mary II. Text: Kaia Means Photo: Scanpix and Wilhelmsen Technical Soultions
weden: “We’ve identified energy management technologies (EMT) as one of the key areas for growth,” says Magnus Hansson, WTS director engineered solutions. To date, the fuel-saving system has been installed in more than 40 cruise and passenger ships, with proven results since 1999. Starting next year, WTS will expand the customer base for Callenberg-EMT with a targeted approach, marketing the system to merchant vessels. “It has great potential,” says Hansson. “We will use our experience together with our global network of knowledge engineers, sales and customer service to help ship owners save energy. We have proven solutions.” In an uneasy global market where energy prices are high, a system that saves on fuel and has a full payback time ranging from six months to a maximum of two years, should generate interest from customers looking to improve their operational efficiency and increase their profitability. Installation can be done seamlessly during regular operations.
24 WWWORLD 2 2011
Magnus Hansson, WTS director engineered solutions. Queen Mary 2: WTS chief design engineer Mikael Örne photographed during the installation of CallenbergEMT on board the famous Cunard ship. (Photo: private)
George Dicker, WTS director of sales Americas, says the industry is being targeted for emission reductions, such as NOx, and upcoming required SOx emission reduction will entail using more expensive fuels.: “Anything that can simply and quickly reduce fuel consumption with a payback time of less than two years must be a winner, considering that it can be done whilst the vessel is trading,” says Dicker. Cutting fuel costs. The Callenberg-EMT
system for engine rooms, controls the engine room ventilation system according to the true demand in every served area which results in an optimum operation. It gives most savings during slow steaming, as the capacity of engine room ventilation and combustion air is made to match the much lower ventilation demand. This can translate to an annual savings of more than 30%.“If you don’t have smart control systems, you will not gain the full profit of fuel savings,” says Hansson, noting that the system also reduces both emissions to air and noise.
Queen Mary 2: The famous ocean liner is being equipped with brand new proprietary energy management technology solution (Callenberg EMT) from Wilhelmsen Technical Solutions. In the picture the ocean liner sails past the Verrazzano Narrows Bridge in New York.
We will use our experience together with our global network of knowledgeable engineers, sales and customerservice to help ship owners save energy. We have proven solutions Magnus Hansson, WTS director engineered solutions “We are also looking into flexible payment options to help ship owners offset the initial investment,” he says. While WTS is increasing its capacity for these installations, it will initially focus on targeted markets, with a goal of installing the system on 20 to 30 ships next year. Complex system. The offerings for cruise
ships and passenger ferries usually involve both HVAC (heating, ventilation, air conditioning) system for accommodation and the engine room systems. The process of installation is complex, and a team of engineers must analyse the current setup thoroughly before installation. For other types of ships, a more standardised setup is possible for engine room systems only, but engineers still must perform detailed analyses prior to installation. Advanced mathematical modeling plays a central role to be able to determine the most promising and realistic energy conservation measures to be undertaken, and for estimations on the expected savings after a solution
has been implemented. A model can consist of 50 million cells of data. For reliable results, it takes the skills of thermodynamics engineers with years of experience in this specialised field. “Although it’s a complex system that matches exactly the needs for ventilation in each and every situation, we have still made it easy to operate. Together with a proven result, that’s the most important part,” says Hansson. Customers will have an inbuilt monitoring system that can give constant feedback, where they can track their savings on a daily, weekly or monthly basis. The system has a proven record in the cruise and passenger ferry markets, with the first versions of the system having been installed in cruise and ferries as early as 1999. Recent customers that have seen the huge potential benefits of installing Callenberg-EMT include Cunard, with the Queen Mary II having the solution installed on its HVAC systems and Carnival, which has had the system installed in four of its cruise ships’ engine rooms.
Wilhelmsen Technical Solutions ➜➜WTS is a global provider of cost efficient, fully
engineered solutions, equipment and services for newbuilds and retrofits in the maritime and offshore industries.
➜➜The company’s expertise includes fire suppres-
sion and prevention, water treatment, heating, ventilation, air-conditioning and refrigeration (HVAC-R), power optimisation, power distribution and control systems.
➜➜WTS designs, produces, installs, commissions
and maintains its solutions for the lifetime of customers’ vessels, rigs and platforms.
➜➜Technical sales teams, localised engineering teams
and highly trained commissioning and service engineers are located at offices across the world.
WWWORLD 2 2011 25
Ww profile In the professional life it’s important to be aware of the ‘blind spots’ and make sure that you have a good team around you
A man for all seasons Text: Einar Chr Erlingsen Photo: Nina Rangøy
Had he cared to keep them all, his would be a rather unique collection of business cards – all with his own name, job title and name of a WW company. Now Bjørge Grimholt (41) can add yet another card to his collection: president Wilhelmsen Ships Service.
Orway: For a man who
has spent his last 15 years in shipping, his career started surprisingly far from a maritime environment. Bjørge Grimholt grew up in Lardal, a small inland community in southern Norway, where forestry and agriculture remain the chief industries. His grandfather was a sea captain, and his mother spent her first years on a whale oil tanker, but this was as close to the maritime industry as he ever got until the age of 26. So it was only natural that his first jobs were as labourer at a local saw mill, then as a construction gardener. Tall, strong and sturdily built, he was well suited for this type of work. “I could get to work in the morning and be given the task of moving 15 tonnes of bricks by hand,” he says. No wonder then that he could 26 WWWORLD 2 2011
easily carry two crates of beer bottles in those days – in each hand! Not to say that he is still ‘heavy-handed’, but his early work experience certainly taught him that no job is ever too big to handle, as long as you have the will to do it. “It taught me the value of hard work. I’ve always enjoyed working with my hands, and I’m still quite handy with a hammer and saw or a trowel. However, I never intended to spend my life doing physical labour,” he says. “My parents are both teachers, so I’ve always understood the value of a good education.” After a spell as a ski instructor and handyman at a local resort, he went on to his MBA at the Norwegian School of Economics (NHH) in Bergen. Besides his studies he also found the time to work on projects for the local county council and was also very active in the students’ union.
Bjørge Grimholt: A man of many talents, and now the new president of Wilhelmsen Ships Service. WWWORLD 2 2011 27
Wilhelmsen Ships Service
Once in a lifetime. With just six months
left until his final exams he received a unique job offer: as shore manager for “Innovation Kvaerner”. This was an innovative sailing racer being built to compete in the Whitbread Round the World Race (today: Volvo Ocean Race) for race veteran Knut Frostad. “It was a once in a lifetime opportunity, I just couldn’t turn it down,” he says. So he temporary left his studies in the autumn of 1996 and joined the team in Kristiansand, Norway to start preparations for the USD 10 million project that would take “Innovation Kvaerner” to the start line in 1997. “It was hard work, 100 hours per week was not unusual,” says Grimholt, who was responsible for shore logistics for boat and crew around the world. Wilhelmsen Lines was among the sponsors, and Bjørge Grimholt soon came to appreciate the WW employees he met around the world. “Normally, I would spend around five weeks in each port, and the help I received from the local WW staff was exceptional and got me thinking about a future career with the company,” he says. Then came the merger with Wallenius in 1999. This temporarily removed any opportunities for outsiders, so Grimholt decided to return to Bergen to finish his MBA.
the responsibility for market development and communication within WMS. By now, we’ve probably all given up counting positions (and business cards!) held by Bjørge Grimholt. But there were more to follow; including two and a half years as president corporate communications. An impatient man. “I tend to be somewhat
Man of music: Bjørge Grimholt has a past as a band member, here photographed during the one and only performance of in-house The GoodWil Band, at the WW Annual Party in January 2004. The other musician is Ivar Brynildsen, at that time claims manager, Wilhelmsen Insurance Services. “When you eat, sleep and work together you learn to adjust and to handle any number of challenges,” says Bjørge Grimholt. “It was a great lesson in people administration, but alas no sporting success. I was about to start a family, so after seven years as a member of the ‘f lying circus’ I decided
The ‘merger specialist’. He was soon to
be challenged with another task: to work out documentation for WW’s board of directors prior to the amalgamation of subsidiaries Barwil and Barber International. This process resulted in Wilhelmsen Maritime Services (WMS) at the start of 2005 – within months to be followed with yet another big development: the acquisition of Unitor Ships Service and thus two more organisations to merge. He led the Unitor integration process through the autumn of 2005 and throughout 2006. Unitor Ships Service and Barwil Agencies where merged to form Barwil Unitor Ships Service (BUSS) and were divided into two areas of responsibility; BUSS Products and BUSS Network. In February 2006 Grimholt was asked to take on the responsibility of president for BUSS Products, in addition to the global integration program. He held this position until the merger of the two BUSS units in November 2006 into what is known today as Wilhelmsen Ships Service. When the integration program was finished by the end of December the same year, Grimholt took on
I’ve been very clear on this. It’s the only way to run this process with integrity. How we act towards each other, and to treat everyone with respect regardless of position; to me this has a lot to do with the ‘WW Spirit’ Like coming home. With this in place he
started some minor projects of his own, before joining forces with Knut Frostad again with the aim of having another go at the Whitbread Race. After eight months of trying to fund the project, the USD 15 million needed for financing the “djuice dragons” finally materialised in July 2000. The organisation rapidly grew from three to 45 employees, two 60 ft custom yachts being built in New Zealand and an initial training base in Miami, Florida that was later moved to Sandefjord, Norway, prior to the start of the race in September 2001. 28 WWWORLD 2 2011
that enough was enough and left when the “djuice dragons” project was finished by the end of 2002.” He had remained in touch with WW, and on the memorable date of 03.03.03, Bjørge Grimholt had his first workday as a WW employee. He also received his first WW ASA business cards, first with the title of manager and soon also vice president logistics. “It felt almost like coming home,” he says. “I knew many of the people already, and had even borrowed an office at the headquarters at Lysaker for a while in the late 90s.”
impatient, so project work suits me fine,” says Grimholt. “I was always open on the fact that I had no desire to be in charge of corporate communications for a long period of time. After a while I wanted to be in closer touch with the business, so I returned to WMS where I became responsible for strategy and corporate development.” These days, he is heading a new process: as president he has taken on the challenge of improving WSS’ profit situation and, as part of that, restructuring WSS’ central functions (see separate article). “The first nine weeks in my new job – including four spent travelling between offices - have been extremely hectic,” he says. “I’ve laid the groundwork for many internal processes before, but this is the first time that I am fronting one myself. I personally know many of the people who have to leave, and the final decision as to what we’ll effectuate in the profit improvement plan is mine. That is no easy burden.” He says that he has handled the difficult choices the only way he can defend to himself: by focusing on functions that will be carried forward rather than on the people. “I’ve been very clear on this. It’s the only way to run this process with integrity. How we act towards each other, and to treat everyone with respect regardless of position; to me this has a lot to do with the ‘WW Spirit’.” Still room for growth. “When fully im-
plemented by the end of this year we will have reduced our operating costs by approximately USD 1.8 million per month. No one can really say what lies ahead, but at least we’ve done that. We’ll be better prepared to face whatever might come, and it will be a challenge to us all. The understanding of our company value empowerment will be crucial.” “In your view: will there also be room for growth?” “Yes, definitely. Take one example: the ship
agency business is still very fragmented, and there is as much to be gained through consolidation, as from new products. It’s really just a question of aiming high enough, and to keep on working.” “Where will WSS be in five years’ time?” “Our immediate concern is to regain our historic profit level; in today’s market this is no small challenge in itself. Seen in a five year perspective I think it is realistic to reach our strategic aim of an annual average twodigit growth on the top line. We have a good platform for expansion. Today, we are doing business with 50% of the world fleet. In other words: the other half are not customers and thus represent a tremendous potential. We can also gain a lot by increasing our share of our existing customers’ wallets.” “Are there times when you are not thinking about business processes and company structures?” “Sure! But not as often as I could wish. What free time I have is mostly spent with my family. I also enjoy the occasional evening with good friends and some music. I come from a musical family, and have both sung in a choir and played various brass instruments and as a young man I used to play the violin. I also play the guitar and used to be a drummer in a band in my younger days. I have a full band set-up in my basement and when I get the urge I sit down behind the drums, crank up the volume on the PA system and forget about everything else for a while. This is pure energy for me, but I’m not sure if the rest of my household agrees.” “Which makes it tempting to ask: is there anything you don’t master?” “There are of course many things I don’t master and other things that I could be far better at. In the professional life it’s important to be aware of the ‘blind spots’ and make sure that you have a good team around you. In terms of personal ambitions I still have one musical challenge that I haven’t yet cracked. I spent a bit of time in Scotland as a student, and even bought a full gala kilt. Years later I came across a bagpipe in the same tartan as my kilt, and thought ‘it can’t really be that difficult to play’. Although I hate to admit it: I still can’t play it!”
Taking action in a turbulent market 2011 has been a turbulent year for many maritime companies and Wilhelmsen Ships Service is no exception. With no signs of a rapid market recovery, action has been taken to improve profit. Norway: While Wilhelmsen Ships Service’s
(WSS) revenue is approaching its all-time high this year, its margins began worsening in the 4th quarter of 2010 and have continued during 2011. After many years of delivering solid results, it has become evident that swift action needs to be taken in the shape of a profit improvement programme, combined with a restructuring of WSS’ central functions. “We recognised that our corporate functions were not optimally organized, and that significant changes were needed,” says WSS president Bjørge Grimholt, about the new company structure that was implemented on 1 December 2011. A number of initiatives have been started through the profit improvement programme and have to some extent already given effect. The main savings will, however, come from reducing the number of employees by some 230 full-time positions. This measure in addition to general cost awareness will cut WSS operating costs by an estimated USD 1.8 million per month effective from January 2012. “We have been building for growth for years. Today’s rather bleak market situation demands that we prepare for quite a different situation. We can’t really influence the big picture, i.e. the world’s financial situation, but we can control our own operating costs. We need to be proactive in order to meet a highly potential deteriorating business climate,” says Grimholt. “The majority of personnel reductions have been taken on the administrative or support levels. We have deliberately tried to avoid cuts at the front end of business. Some places we will even be increasing the number of employees, when required by market demand,” says Bjørge Grimholt.
WWWORLD 2 2011 29
WW shipping panama canal
Master: Captain Jan Mikael Sigurd keeps watch as his ship passes through the Panama Canal.
hours across a continent With an extensive and tight loop of four months around Europe, the east and west coast of the US, New Zealand, Tahiti, Australia, Singapore, Korea, Japan and Europe again, there´s no time to lose for MV Tamerlane. Text: Eliécer Navarro Photos: Didier Magallón and Thinkstock
In the locks: MV Tamerlane has just finished her 12-hour passage from the Atlantic to the Pacific Ocean.
30 WWWORLD 2 2011
WWWORLD 2 2011 31
WW shipping panama canal It’s a long day. We start early in the morning and we hope to be out early evening or late afternoon Jan Mikael Sigurd, captain
anama: For shortcuts in commercial
shipping, there´s none better than the Panama Canal. On 30 October, 2011, the ro-ro vessel with a crew of 29, made the 12-hour crossing of this key conduit for international maritime trade. WW World joined them from 05:15 to 18:30 in their latest transit through one of history’s largest works of engineering. It’s a passage that took us from the Atlantic to the Pacific in a lapse of time that would have been unthinkable for any ship 97 years ago. The making of the Panama Canal in 1914 was a USD 639 million project (USD 14 billion adjusted for inflation) that almost ruined a nation (France), made another a world powerhouse (USA), changed the maritime routes all over the world, created a new country and transformed its territory forever.
Canal agent: Gilmar Martiz, operations supervisor at Barwil Agencies Panama.
Old friends at the Canal
We have done this many times. The quicker, the better
Cristobal. Our transit started early in the
morning at Cristobal Port in Colon Province, when we, accompanied by Barwil Agencies Panama boarded the 67 140 ton vessel that had arrived the day before. The captain, Jan Mikael Sigurd from Sweden, leads a diverse team of 18 Filipinos, four Nor wegians, three Indians and three British sailors. In his 40 years of experience at sea, 13 as captain and five leading the MV Tamerlane crew, Sigurd is well familiar with the Canal after more crossings than he can count. “It’s a long day. We start early in the morning and we hope to be out early evening or late afternoon,” he explains. “We have done this many times. The quicker, the better”. With it’s length of 240.6 m and 32.26 beam, the vessel can barely fit the three sets of locks of the Panama Canal: Gatun, Pedro Miguel and Miraflores. “This is a very nice ship, with good equipment; it’s my favorite vessel,” says captain Sigurd.
Ship in the jungle: It's a strange feeling to be on board an ocean going vessel with dense jungle on either side.
Meals as usual: 2nd cook Joselito Ramos made his best efforts to provide a menu with typical dishes from European and Asian cuisine – regardless of the tropical environment.
Bound for Australia. Built in 2001 by
Daewoo, the Tamerlane is a Mark IV generation ro-ro ship. On this occasion, it is carrying mostly European cars destined to the Australian and New Zealand markets. Given the sheer size and many long corridors of the ship, there were instances when we felt completely alone, only to find a couple of cadets chatting about their friends back home. When the Panama Canal Pilot took control of the Tamerlane, several members of the crew felt free to relax a few hours. 32 WWWORLD 2 2011
In the engine room: (from the left) motorman Faustino Sabong, motorman Arnold Mancio, 2nd engineer Anthony Pereira, 3rd engineer Jovita Aleman and fitter Tirso Santiago recalled past experiences in Panamanian land.
To be on board a huge ship built for crossing the world oceans, it is an almost unreal feeling to be gliding through dense jungle. Jungle sounds are not something that you normally associate with life on board. During the day, some crew members had the opportunity to see the expansion works for the first time, the multi-million dollar effort by the Panama Canal Administration to create two new post panamax sized lock complexes. One of them was British cadet Steven Robert, who spent several hours taking pictures of the works, as well as the Centennial Bridge and the Americas Bridge. In the engine room, second engineer Anthony Pereira, third engineer Jovito Alemán, fitter Tirso Santiago and MTMs Faustino Sabong and Arnold Mancio recalled past experiences in Panamanian land. Aware of the diversity among the crew, 2nd cook Joselito Ramos made his best efforts to provide a menu with typical dishes from European and Asian cuisine, from bacon and steak to curry and Indian flat bread. We all felt the intensity of the Panamanian rainy season. At least three downpours stormed Gatun Lake, and later, Miraflores locks. Across Gatun, which once was the largest man-made lake in the world, the Tamerlane could speed up to eight knots.
jan Mikael Sigurd, captain
A transit of the Panama Canal involves a lot of practicalities, from booking a pilot, tugboat assistance, forms to fill in. MV Tamerlane’s crossing went smoothly, due to good groundwork performed by old friends in Barwil Agencies. Text: Eliécer Navarro Photo: Didier Magallón
A busy day. By afternoon, it seemed this
Panama: “Considering our 24/7 business and
crossing would be shorter than average, but the Panama Canal Authority gave its pilot instructions to stop for two hours because of heavy traffic. Nineteen vessels crossed the Canal on that busy day. Passing through the locks is a high precision maneuver. We could see the electric locomotives running on rack tracks, known as mulas (mules), carefully guide the Tamerlane just inches from the hull. Cracks at a few points on the lock walls were evidence of some very few miscalculations in the past. Most of the time, like this one for Tamerlane, the crossing goes safely and almost effortlessly. By the time the ship reached the Americas Bridge and ventured into open waters of the Pacific, it was dark again. The crew knew they had made another successful voyage through one of the most extraordinary waterways on the globe, a voyage that the Tamerlane will be making many more times in its remaining years of service. On his way to the US west coast, captain Sigurd recalled 1974, the first year he passed through the Canal as a deck hand, three years after his first day at sea: “I just wanted to see the world and have some fun, and here I am, still having fun!”
daily rush, we attend to a considerable number of vessels with minimum margin for errors,” says Barwil Agencies Panama´s operations supervisor Gilmar Martiz. “Yearly, the Panama Canal attracts around 13 000 ships, and the agency attends not only to transiting vessels, but also handles port calls, husbandry and most major services required by our principals.” For the last 26 years, Barwil Agencies Panama (a joint venture between Wilhelmsen Ships Service and a local partner) has been representing some of the most prestigious companies in the shipping business, attending to all major ports in the Pacific and Atlantic sides of the isthmus, (Balboa, Cristobal and Manzanillo) and offering its services to other terminals across the country, such as Vacamonte, Almirante, Bahia Las Minas and Petro Terminal Panama. WW World got an insight into Barwil’s operations when the agency served MV Tamerlane during her latest crossing of the Panama Canal. Barwil is part of the Wilhelmsen Ships Service global agency chain and was established back in 1985. Today, Barwil is firmly positioned in Panama and represents companies such as Wallenius Wilhelmsen Logistics, EUKOR and Saga Forest Carriers.
A busy agency. Annually Barwil attends
between 1 080 and 1 200 ships (transit, port calls and husbandry) and is thus among the largest agencies attending to ships passing through the Panama Canal. It handles more than 500 messages per day. Communications with vessels’ masters, ship owners, shipping and management companies keep its 40 employees busy around the clock. “One of our duties as transit agents,” says Martiz, “is to constantly stay in touch with the Canal authorities about the vessels’ transit line-up, in order to report to clients on estimated Panama Canal transit date for planning purposes.” Time is money. The vast majority of ves-
sels attended by Barwil are transit only. All servicing is to take place at the anchorage areas on both sides of the Canal entrances while the ships wait their turn to enter, and without interfering with scheduled transits. “Time is money, and even more so at the Panama Canal,” says Martiz. Besides transits, an array of other services are offered to the ships, like bunkers replenishments, spares, couriers, deliveries of provisions, crew changes, fresh water supply and any other requirement a ship might have. The Panama Canal never rests – nor do Barwil Agencies Panama. WWWORLD 2 2011 33
WW shipping panama canal BACKGROUND
New life for THE Panama Canal
In the next few years, 50% of the capacity for moving cargo will be on post-panamax ships – ships too large to fit through the current canal locks
Five years after Panamanians gave their blessing to the project in a referendum, the Panama Canal expansion works are reaching their most important stage.
Alberto Aleman Zubieta
Text: Eliécer Navarro Photo: Canal de Panama anama: Grupo Unidos por el Canal (GUPC) which was awarded the USD 5.25 billion expansion contract by the Panama Canal Authority (Spanish acronym ACP) has started the construction of 16 doors – each one weighing 50 tons – for the new set of locks. The concrete work for the new locks, entering into the most crucial part of the whole project, started in October 2011. The new set of locks will be 426.72 meters long and 54.86 meters wide, with depth 18.29 meters, and will when finished open up for the crossing of much larger vessels than up till now.
New opportunity. Alberto Aleman Zubieta,
administrator and CEO of the ACP, explains that the project is set to give new life to the canal, once it´s finished by the end of 2014. “In the next few years, 50%of the capacity for moving cargo will be on post-panamax ships – ships too large to fit through the current canal locks,” says Zubieta. Panama’s Canal Minister of Foreign Affairs, Romulo Roux, highlighted that the expanded path "will be able to meet the demands of world trade and will change shipping patterns which will translate into more opportunities for Panama and the region." 34 WWWORLD 2 2011
But it doesn’t all end with the locks. ACP reported that until 30 September 2011, Dredging International de Panamá S.A. (DI), the contractor in charge of deepening and widening the Pacific entrance, has removed around 7.4 million cubic meters of material. On 12 October, phase three of the dry excavation project in the construction of the Pacific Access Channel (PAC) was completed. A week later, the ACP started the filling of a segment of the new access channel that will allow the transit of post-panamax vessels between the new Locks and the Culebra Cut. The entrance to the new channel is 1.6 kilometers long, 218 meters wide and 9.14 meters above sea level. The area was filled up to 12.5 meters of water, to reach the elevation of 21.64 feet above sea level, using 1.4 million cubic meters of water from Gatun Lake. Once the new locks are operative, the ACP expects to recover its investment in 10 years. If the ACP projections are correct, the expanded canal will gain even more relevance for the shipping industry. As per today, 37% of the world's container ship fleet is too wide for the Gatun, Miraflores and Pedro Miguel Locks. Alberto Aleman Zubieta revealed that cargo volume is expected to grow at an average of three per cent per year, doubling 2005's tonnage by the year 2025.
Expects growth: Alberto Aleman Zubieta, administrator and CEO of the ACP (Panama Canal Authority) expects cargo volumes through the Panama Canal to double by year 2025.
Panama Canal facts (after extension) Lock length: 426.72 meters Width: 54.86 meters Depth: 18.29 meters Yearly transit capacity:
Massive works: So far in the project, some 7.4 million cubic meters of earth have been removed.
600+ million tonnes Completion: 2014
Fully operational: 2015
WWWORLD 2 2011 35
Shipping & Logistics:
A strong rebound – and a modernized fleet
The shipping and logistics operations in Wilh. Wilhelmsen ASA (WWASA) show a strong rebound in 2011 due to new vessels improving operational efficiency, a healthy trade mix and higher volumes. Text: Arild S Johannessen/Benedicte Gude
Wilh. Wilhelmsen ASA will receive six newbuildings in 2011 and 2012. The 8 000 CEU MV Tugela was set in commenced service in 2011.
hen president and CEO Jan Eyvin Wang presented the third quarter 8 November, WWASA recorded an operating profit of USD 91 million, up 44.3% from the second quarter. Total income increased by 9.8% and ended at USD 644 million. “Ocean volumes were slightly down quarter on quarter. However, increased auto export out of Japan, strong export from Europe to China and continued high volumes to Oceania improved the group’s trade mix. Coupled with new vessels improving operational efficiency, this lifted WWASA’s revenue and earnings,” said Mr Wang. One of the newbuildings that commenced service in 2011 was MV Tønsberg, 36 WWWORLD 2 2011
the world’s largest and most sophisticated rollon roll-off carrier.
in 2011 are stable at around 18 million units, followed by Europe (15.3 million units) and North America (14.7 million units).
Change in foundation trades. Some 53%
of volumes transported are in the group’s foundation trades, Japan/Korea – Europe/the US, Oceania – Europe/the US and Europe – the US, down from 57-58% at the beginning of 2010. The last couple of years the amount of volumes transported to emerging markets have been increasing slowly, but steadily. New trades include export from Europe to China as well as the other so-called BRIC-countries (Brazil, Russia and India). China is now the world’s largest automotive market in terms of sales. Forecast for annual Chinese car sales
Modernized fleet. The operating compa-
Jan Eyvin Wang, President and CEO Wilh. Wilhelmsen ASA. (Photo: Kaia Means).
nies in the WWASA group controlled a total of 133 vessels at the end of September 2011. The fleet represents a 22% global market share measured in CEUs (car equivalent units). The group took delivery of seven newbuildings in the second and third quarter. The total remaining newbuilding programme consists of three vessels to be delivered to EUKOR Car Carriers and six vessels to Wallenius Wilhelmsen Logistics during 2012. Four of the latter vessels – two large car and truck
carriers, one ro-ro vessel and one pure car and truck carrier – are for WWASA’s account. The fleet renewal represents more fuel efficient vessels, increased cargo volumes and the latest in ship design and technology. Logistics. The demands for high and heavy
cargo, comprising constructing, mining and agricultural equipment continue to be good. “The group’s advanced shore-based logistics services continue to have a positive impact on the group’s performance, with the successful development in Glovis contributing most to the logistic segment’s profit,” says Wang. Commenting on the prospects for group, Wang gives this prediction for 2012: “Given
the fiscal uncertainty that exists in Europe and the ripple effect this has on global financial markets, volumes may soften during the next six months. The BRIC countries are expected to stay strong including export from Europe to China, whilst exports to Europe may weaken.”
Wilh. Wilhelmsen ASA WWASA offers global car and ro-ro customers high quality sea transportation and integrated logistics solutions from factory to dealer through its partnership with Wallenius Lines and the jointly owned operating companies Wallenius Wilhelmsen Logistics, EUKOR Car Carriers and American Shipping and Logistics.
WWWORLD 2 2011 37
10 questions: Marianne Fosaas
Mama Wilhelmsen Known as ‘Mama Wilhelmsen’ to many and ‘The Iron Lady’ to others, crew manager Wilhelmsen Marine Personnel Marianne Fosaas retired on 1 December after 44 years in the service of WW. Text: Einar Chr Erlingsen Photo: Kaia Means
Q: Why the very different nicknames? A: Well, I have always tried to find solutions
when someone has had a practical problem, and I think that they also understand that I care about them - thus ‘Mama Wilhelmsen’. Having grown up in a maritime environment in Tønsberg I’ve always had a soft spot for seafarers. I might have earned the other nickname because I don’t give up easily when I try to solve a problem for one of the ships. Q: You are known as a spokeswoman for our mariners? A: That is because they are a group of great peo-
nationalities. We have the system in place for the required medical check-up, paperwork, no visa required for Norwegians and so on. The new master was on board when the ship was ready to leave. Actually, I can’t remember even one case when a vessel was delayed because we couldn’t find a crew replacement. There is also another aspect, namely cultural differences. The importance of ship maintenance is almost a reflex to Norwegians; it’s in their backbone. That is not necessarily the case for other nationalities – but very im-
ple. We must never forget that they are the basis of all our activities. In a complex kind of shipping like ours it is important to remember this. Historically speaking, our company has been built up by Norwegian seafarers. During the last decades they have been joined by a lot of fine professionals from many other countries as well.
Q: In a truly international company: why is it still important that some of our mariners are Norwegians? A: Let me illustrate with a recent example: I got a phone call early one morning from one of the vessels. They needed a replacement for their master the same day. It would not have been possible to meet this demand with any other 38 WWWORLD 2 2011
portant for keeping the ship running. Q: What do you consider your strongest qualities? A: Perhaps my ability to react fast, and to find
solutions. The work of a crew manager is quite similar to working at sea: you have to react to a problem there and then. And you are always on call in an emergency. Q: 44 years working for the same company – has it
been worth it? A: Yes, definitely. It has been a job full of chal-
lenges, never a dull moment. Most days have been so hectic that I really haven’t had time to reflect on what’s been going on until I have arrived on the ferry on my way home. Q: What was your toughest period as a Wilhelmsen
Time to say goodbye: Marianne Fosaas with one of her many ‘boys’, captain Espen Derbakk, MV Tamesis.
employee? A: There have been several. The Partnair accident in 1989 of course, when 50 of our colleagues lost their life. Also the establishment of the Norwegian International Ships register. We had to let around one thousand of our seafarers go, with only 80 left among our ranks. I experienced both tears and desperation then. But it was necessary to ensure the survival of the company. Still, it hurt a lot.
‘Mama Wilhelmsen’: Crew manager Marianne Fosaas has almost become an institution during her 44 years in WW.
Another challenging period was the Tampa incident in 2001 – I was part of the crisis team and had to handle family and friends of those on board and try to calm their fears; many were afraid and even crying. We kept them updated every second hour, and managed to be ahead of the many rumours that circulated on TV and other media most of the time. Q: Your best memory? A: There have been many – but perhaps again:
the Tampa incident; that it ended so well for everyone involved. What impressed me in particular was how professionally our own organisation and the politicians handled a very difficult situation. Then the Tricolor was rammed in 2003 and sank in the English Channel. The crew ended up in the sea, thankfully without casualties. I remember checking the crew list to inform their next of kin, and noted that the captain had registered his mother as his. Judging from his age she must have been well over eighty, so I was rather reluctant to call her to inform her that her son had had an accident. At that stage we didn’t really know his condition. Instead, I phoned the local police officer. He informed me that the captain had several
siblings, so I called a brother instead. When I later met the captain he told me that his main worry when swimming in the icy water had been the shock for his mother – which we had avoided. Instead we were able to call her the next day to inform her that her son was okay.
We must never underestimate the importance of maritime competence and hard work; economists can’t always have the final word Q: What pleases you today? A: That we have so many competent and loyal
seafarers from many nations to communicate our unique company values. It also pleases me that the number of Norwegian seafarers in Wilhelmsen Marine Personnel is now around 450. Also our many young cadets, including a fair number from Norway and the UK. Ro-ro
competence is a scarce commodity, so we need to educate our own people. Q: A last word of advice? A: I believe in human relations and a sense of
belonging. This requires open doors between departments and companies, sea and shore. We must never underestimate the importance of maritime competence and hard work; economists can’t always have the final word. When a ship calls for a replacement of some kind they deserve to be heard. So it’s of utmost importance that their counterparts on shore have a maritime background and understanding. That creates mutual trust; that the seafarers feel that someone are promoting their case. It also ensures loyalty. Q: Your own plans for the future? A: One thing is certain: I am not going to be
bored, I never am. I’ll certainly remember my many good friends and colleagues in WW with great fondness and frequently think about them. I’ve always played tennis and intend to do more so now. I will spend more time with my family: son and daughter and four grandchildren. Skiing, bridge and travelling, these are all interests that I would like to pursue. And finally: I’m looking forward to a lot of uninterrupted dinners! WWWORLD 2 2011 39
Special Report: south korea
Last year, EUKOR transported 1 130 000 cars from this factory to five continents. This year the number will exceed 1.5 million
An Asian marvel
built on hard work
At one of Hyundaiâ€™s largest car factories it is possible to understand the magnitude of the South Korean marvel. WW World has visited one of the Wilhelmsen groupâ€™s most important markets, in a country that is going to host the world trade fair Expo 2012. In South Korea: Arild S Johannessen (text and photos)
40 WWWORLD 2 2011
WWWORLD 2 2011 41
Special Report: south korea
By the end of 2011 South Korea will be richer than the European Union average lsan: We have just visited factory no. 3 at the Hyundai Motor plant, and witnessed a car being born every 59th second. Hyundai Motor Company (HMC) has evolved to become the world’s fourth largest car manufacturer in less than 40 years. In 2010 HMC sold 3 610 000 vehicles in the global car market, and won JD Powers Vehicle Dependability Survey for the third consecutive year. It’s a marvel. For Captain Su-Deug Kim, head of EUKOR’s office in Ulsan, the marvel is transformed into logistics. Together with Dong-Wook Jo on Hyundai’s export logistics team, he has to plan and calculate so there is always a car carrier available at the berth, ready to ship the daily production of 4 000 cars. Last year, EUKOR transported 1 130 000 cars from this factory to five continents. This year the number will exceed 1.5 million. It’s a marvel. By the end of 2011, South Korea will be richer than the European Union average, with a gross domestic product per person of 31 750 USD, compared with 31 550 USD for the European Union. South Korea is the only country that has so far managed to go from being dependant on development aid to prosperity within one generation.
(DMZ) and its neighbour North Korea. The two nations have a relationship based on the Armistice Agreement of 27 July 1953 to end the fighting, but tension is still present.
A divided nation. Only 51 years ago, in 1960,
in the aftermath of a devastating war, South Korea was one of the poorest countries in the world, with an income per capita on par with the poorest African countries. Korea is also the only country that is still divided into two nations, with the South Korean capital Seoul just 56 km from the Demilitarized Zone 42 WWWORLD 2 2011
Growth and equality. South Korea has not
Teamwork: Captain Su-Deug Kim, head of EUKOR’s Ulsan office, enjoys close cooperation with Dong-Wook Jo, assistant manager at Hyundais export logistics team.
South Korea ➜➜The Republic of Korea (South Korea) is a sov-
ereign state in East Asia, located on the southern part of the Korean Peninsula. It is neighboured by the People's Republic of China (Mainland China) to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China (Taiwan) to the south. South Korea lies within a humid continental and humid subtropical climate region with a predominantly mountainous terrain. Its territory covers a total area of 99 392 square kilometres] and has a population of almost 50 million. The capital and largest city is Seoul, with a population of 10 421 782. Note: This article is based on own observations and sources, as well as text from The Economist and Wikipedia.
merely grown fast. It has combined growth with democracy. Korea has also managed to combine growth with equality. In 2010, GDP grew by 6%. This year’s growth is likely to be 4%. The unemployment rate is now a covetable 3%. This prosperity and achievements of 50 million South Koreans have not come by itself. South Koreans prioritize education and hard work. They put in 2 200 work hours per year, twice as much as the Dutch or the Germans. Their reaction to the 2008 financial crisis was to work even harder. And the quality of labour has been even more important than the quantity. Along with Finland and Singapore, Korean schools regularly top international comparisons of educational standards. Korea spends a larger share of GDP on education than any rich country other than the U.S. Given relatively low wages, this superbly educated workforce is hard to beat. Expo 2012. South Korea is not unfamiliar with
taking centre stage when it comes to world events. In 1988, Seoul was host to the Summer Olympic Games. In 2002, South Korea was host to the FIFA World Cup. And next year Yeosu will host the world’s largest trade fair, The Expo 2012. The Wilhelmsen group is a proud main sponsor of the Norwegian Pavilion at the exhibition. Please enjoy this special report from a country where all Wilh. Wilhelmsen business areas are represented and that is one of our key markets in the world today. WWWORLD 2 2011 43
Special Report: south korea eoul: Together with other key ex-
EUKOR Car Carriers
The jewel in the crown
At the age of 66 former deputy group CEO in WW, Sjur Galtung, was sent on his first foreign assignment to become president and CEO of EUKOR Car Carriers. As one of the company’s founding fathers in 2002, Mr Galtung is the right man in the right place for both owners and main customer Hyundai/Kia.
ecutives from WW and Wallenius, Sjur Galtung was a frequent flyer to Seoul during 2002 as lead negotiator with Hyundai Merchant Marine, when they decided to divest their car carrier division. In its 9th consecutive year of operation EUKOR has grown to become one of the world’s largest operators of car carriers, transporting more than 3.3 million CEU’s (car equivalent units) annually. “In 2011, we will have annual revenues of USD 2.3 billion, and generate a healthy profit for our owners. During our life span EUKOR has become an Asian car carrier specialist, with a multitude of customers in Asia, Europe, and The Americas,” says Sjur Galtung when we meet him at the head office in Seoul on a sunny Monday in November. He is head of what is called the jewel in the crown for its Scandinavian majority owners. New foundation trades. Based on the
agreement with HMC/Kia, more than 90% of EUKOR’s business consisted of ocean transport of Hyundai and Kia cars to the world markets in its first years of operations. After re-negotiation, the current agreement grants EUKOR a 60% share of Hyundai’s car export in the period of 2012–2015. Says Sjur Galtung: “We have changed from being in a mono-customer situation to becoming a more traditional shipping company. In 2011, we are de facto transporting more cars from the manufacturers in Europe to Asia, than in the opposite direction. This is historically a unique situation. In addition, we are involved in several new trades.” Cooperation with WWL. EUKOR has always
Positioned for growth: “We are positioned where the largest growth in our segment takes place,” says Sjur Galtung , President and CEO EUKOR Car Carriers. (Photo: Martin Malmfors)
44 WWWORLD 2 2011
been a very lean organization, with a total of only 192 employees worldwide. The business idea is as efficient as it is simple: commercial management of all vessels in the fleet and fleet utilization. The goal is that every vessel must depart Asia fully loaded, and assemble as much cargo as possible on her return voyage. All non-core activities such as ship management and ship agency are outsourced. The two sister companies, EUKOR and Wallenius Wilhelmsen Logistics, have widespread cooperation to utilize their large pool of pure car and truck carriers (PCTCs). This includes the joint PIRT terminal in Pyongtaek (see specific story), tonnage cooperation and vessel handling in port. “From a groping start we are now in the position where the WW and OW ship operating companies are the market leaders within the ro-ro segment, with a global market share of
The growth of the Korean automotive industry is impressive. The Hyundai group has in just a few years leaped to become the world’s fourth largest manufacturer of cars 22% and control of approximately 130 vessels. We have an excellent cooperation with WWL, and the customers are benefiting from our total offer,” says Sjur Galtung. Where the growth is. In 2011, EUKOR experiences strong exports from Europe to China and increased volumes for non-Hyundai/Kia customers. The CEO of EUKOR is optimistic regarding the future: “The growth of the Korean automotive industry is impressive. The Hyundai group has in just a few years leaped to become the world’s fourth largest manufacturer of cars. Today,
EUKOR Car Carriers ➜➜EUKOR Car Carriers has its head office in Seoul and
local offices in Pyeongtaek, Ulsan and Mokpo. ➜➜EUKOR is also represented with offices in Tokyo, Beijing, Shanghai, Chennai, Dubai, Istanbul, Frankfurt, Los Angeles, Vancouver, New Jersey and Sao Paulo. ➜➜By the end of September 2011, EUKOR controlled a total of about 80 vessels, with a total capacity of 400 000 CEUs (car equivalent units). ➜➜EUKOR Car Carriers is owned 40% by Wilh. Wilhelmsen ASA, 40% by Wallenius Lines and 20% by Hyundai Motor Company and Kia Motors Corporation. ➜➜Every year EUKOR provides ocean transport of more than 3.3 million CEUs.
Hyundai and Kia are admired for their design, technology and extended warranties. We are positioned where the largest growth in our segment takes place. We are also very satisfied with the Chinese car market, where demand for European premium brands seems endless. Today, we are without question the largest car carrier company in terms of import and export to and from China.” A can-do attitude. Sjur Galtung has worked
with Koreans for more than 10 years, but is still impressed with their work habits and can-do attitude. A Korean works for at least 10 hours a day, and loyalty towards the company is very highly regarded. “In the beginning, we experienced language barriers and a very hierarchical business culture. All that is about to change. The new generation is quite fluent in English, and Koreans are the most wired people worldwide in terms of Internet usage. But still personal relations are of pivotal importance, and socializing with customers after working hours is both appreciated and expected. Personally I find it amusing to end my 40-year long career in WW as a chief executive officer in Korea. I have an extremely motivated organization and that provides adrenalin for an old man, too,” says Sjur Galtung. EUKOR employees speak highly of the CEO, and what they describe as the “Galtung-effect”. Since he joined as CEO in 2010, EUKOR Car Carriers has delivered its best results ever. WWWORLD 2 2011 45
Special Report: south korea
– a jointly owned terminal
Pyeongtaek International Ro-Ro Terminal (PIRT) is jointly owned by Wallenius Wilhelmsen Terminals Korea and EUKOR Car Carriers, and is the best example of the excellent commercial cooperation that exists between the two companies in Korea. yeongtaek: Strategically located
just southwest of Seoul, PIRT is a modern new terminal which opened just two years ago. It has a strategic important location, near two of Korea’s main transportation links and is the country’s closest port to China. With 116 000 sqm of secure storage space, the terminal can store up to 10 000 vehicles and offers customs clearance and other services.
For EUKOR Car Carriers, Pyeongtaek port is the main hub for the export of Kia cars, while for WWL it is the export of SsangYong. Together with Kia, PIRT has a capacity of berthing four pure car and truck carriers at the same time. Korea’s increasing affluence, however, is keeping the PIRT staff busy with large numbers of imports, especially cars from Europe and Japan – in all, some 600 000 units annually.
“We have very big import volumes,” says Dong Yeol Lee, PIRT’s assistant manager, sales and marketing team. “Koreans are buying foreign cars, and we handle many international brands.” While imported cars are by far the biggest import item for PIRT, the terminal also handles high and heavy (H&H) cargo, such as Korean-made excavators bound for North America.
Koreans are buying foreign cars, and we handle many international brands
staff: The team at WWLs office in Seoul is assembled for WW World. Mr Seongeun Kang, head of WWL Korea is number two from left.
Wallenius Wilhelmsen Logistics
the sales office
Huge: The PIRT terminal at Pyeongtaek.
46 WWWORLD 2 2011
Seoul: Although being smaller than EUKOR, Wallenius WilhelmsenLogistics (WWL) is also an important player in the Korean automotive and logistics market. WW World meet Seongeun Kang, head of WWL Korea in his office located next to the City Hall in downtown Seoul. Together with 14 colleagues, all Korean, they are an important part of WWLs Asian operations. “We are basically a sales office, taking care of port operations, commercial cargo and customer service in cooperation with our regional head office in Tokyo. 95% of our cargo is export of cars and high and heavy cargo, with main customers GM Korea company, Ssangyong Motors, Doosan Infracore and Volvo Construction Equipment,” ex-
plains Mr Kang. WWL has three sailings per month from Korea to Europe, and also regular routes to North America, and Mexico. Another expanding trade is “The China Express” with three monthly sailings between Korean, Japanese and Chinese ports. Other ports of call in WWLs intra-Asia network is Singapore, Port Kelang, Chennai and Jakarta. EUKOR and WWL has part ownership in the PIRT terminal in Pyongtaek (see separate article), and is otherwise cooperating in fleet utilization. “We have clear roles towards EUKOR, and very good relation. With the same owners we both benefit from a steadily increasing business and higher export volumes out of Korea”, says Seongeun Kang, head of WWL Korea. WWWORLD 2 2011 47
Special Report: south korea
Wilhelmsen Ship Management
An accepted and respected pioneer
Wilhelmsen Ship Management Korea (WSM) is the first foreign 3rd party ship manager who is certified to crew and operate Korean flag vessels. With 25 vessels already on management, general manager Sanjay Tyagi predicts further growth in North-East Asia. usan: “We are already the largest
independent operator of pure car and truck carriers in the north east Asia region. We estimate that outsourcing of vessels and crewing will increase in the coming years as ship owners focus on cost,” says the energetic Indian captain, who took charge of WSM’s subsidiary in Korea in 2008. The operation started in April 2005, as a result of the establishment of EUKOR two years earlier. As part of the agreement between HMC, Wilhelmsen and Wallenius, it was decided that some of the new company’s vessels should be technically managed by WSM. From a modest start with 11 vessels in the first year of operation, Sanjay Tyagi and his team of 14 colleagues today operate 14 vessels for EUKOR, and another 11 vessels for other owners. In addition, WSM Korea has its own manning office with 180 Koreans seafarers on their payroll. 80% of the office staff are Koreans, with vast experience also from other shipping segments like LNG, chemicals and bulk carriers. The first down the line. “There are more
than 400 small and local ship managers in Korea. But we are the first foreign ship manager who have been granted a crewing license and, a Korean DOC (Document of Compliance). The result is that we are able to crew and operate Korean flag vessels, which are under tight national regulations. Based on our pioneer status 48 WWWORLD 2 2011
as ship managers, we also have the privilege to be advisors for Korean Register of Shipping on ship management issues. We are also regularly invited to present ourselves at the two maritime colleges in Korea. Of the 10 top college graduates last year, seven applied for a position at WSM. We are very proud of that,” says the general manager. Cross-business cooperation. Being part
of the WW group has several advantages in Korea, to the mutual benefit of both business areas and customers. WSM Korea was based on the foundation of EUKOR, and has entered into several fleet agreements with Wilhelmsen Ships Service (WSS) on behalf of customers. “We are a demanding customer to WSS, but so far they have performed better than our expectations. We can pick up the phone whether its weekends or in the middle of the night, and they deliver,” says Mr Tyagi. Korea opening up. During his stay in South
Korea, Sanjay Tyagi has observed that the country has taken several steps towards integrating into the Global Economy. With increasing cost levels and a strong currency, ship owners are looking for lean operation and economies of scale. “Outsourcing of technical management is a viable option for an increasing number of owners, and we are in a good position to take part in this growth,” says Sanjay Tyagi. He describes Koreans as very hard working
We are a demanding customer to WSS, but so far they have performed better than our expectations. We can pick up the phone whether its weekends or in the middle of the night, and they deliver Sanjay Tyagi, general manager
➜➜Wilhelmsen Ship Management Korea Ltd operates
out of Busan in South. Korea
➜➜25 vessels are currently on management on behalf
of owners, all pure car and truck carriers (PCTC).
➜➜Main customers are EUKOR, Wilhelmsen Lines Car
Carriers, Norwegian Car Carriers, Tailwind ASC, Stella Car Carriers, San Clemente Shipping and Hyundai Glovis. ➜➜WSM Korea offers technical management as well as officers and crew to both Korean flag vessels and to other North-East Asian nations.
people who expect the same from everyone else in the value chain. In South Korean business life, it is important to build trust and be worthy of approval. Captain Tyagi says that being part of a large maritime network with a 150-year history and strong ‘Governance and Values’ are important attributes when approaching new customers. The group’s ownership in Hyundai Glovis and EUKOR are also important acceptance factors. Rapid response. Sanjay Tyagi is proud of the
fact that the Korean operation is a ‘lean-mean machine’ with high output, and the fact that the office adapts quickly to new challenges. When an owner asked WSM to provide technical management and take over a vessel in just two weeks (the normal hand-over period being two months), WSM Korea was able to deliver the required services within deadline thanks to the support from its global network. “After six years of operation, our best qualification is the fact that we are perceived as a Korean company and not a foreign threat. In the future our biggest challenge is to attain and retain qualified officers and crew. Highly skilled maritime professionals are a scarce resource in South Korea, and the yard industry, ship owners as well as classification societies fight over the best people. But we are competitive, especially since we can offer a career on shore when the sailing days are over,” says general manager Sanjay Tyagi.
Wilhelmsen Ship Management is the first foreign 3rd part ship manager to be approved as a manning agent in Korea. In the picture general manager Sanjay Tyagi (center) is together with Ms. Ju-Hee Kim, account department and Mr Pyong-Hee Kim, crew and training manager.
WWWORLD 2 2011 49
Special Report: south korea
WSS Korea ➜➜Wilhelmsen Ships Service Korea is divided into
Wilhelmsen Ships Service
Synergies within the family Wilhelmsen Ships Service (WSS) is the largest business area in Wilhelmsen Maritime Services. In South Korea, WSS enjoys a common market approach with its siblings Wilhelmsen Ship Management and Wilhelmsen Technical Solutions, to the benefit of all. usan: “In South Korea we benefit
from close cooperation within Wilhelmsen Maritime Services. As a large 3rd party ship manager, Wilhelmsen Ship Management uses us as an important provider of products to their vessels. The WW ASA group companies EUKOR, Wallenius Wilhelmsen Logistics and Glovis have contributed significantly to our ships agency growth in South Korea. Together with Wilhelmsen Technical Solutions, we approach the market as two sides of the same coin. This cross-business synergy is enjoyed by our customers,” says Woon-Sik Choi, general manager of WSS in Korea.
Our prime challenge is to get the right people with English speaking skills and sales approach in their mindset. Luckily, we have a very good staff today Woon-Sik Choi
International certification. As the
world’s largest ship builder, the yard industry in South Korea is also an important market for Wilhelmsen Ships Service. Approximately 70% of all new built vessels delivered from Korean yards are receiving initial supplies from WSS. This ‘start package’ includes chemicals, maritime gases and other inventory that is necessary for the ship to sail. “We also profit from the global initiatives in WSS, like the life raft exchange (LRE) and ships agency re-defined. Both concepts are well received in the South Korean Market, and we have doubled our revenue from LRE this year,” adds the general manager. WSS has also received an international certification from the Korean Registry to service safety equipment such as fire extinguishers and breathing apparatus, as well as inflatable life rafts and hydrostatic release units to ships and offshore structures classed 50 WWWORLD 2 2011
two major operations
➜➜WSS provides marine products, technical services
and account sales
➜➜Wilhelmsen Hyopwoon Ships Service (WHSS) is
WSS STAFF: Regardless of turbulent times, the staff at Wilhelmsen Ships Service in Korea expect a sound growth rate also in 2012.
a joint venture formed in 1996, focusing on ships agency and maritime logistics ➜➜WHSS’ head office is in Seoul ➜➜WSS and WHSS operate together in Busan, Seoul, Inchon, Ulsan and Pyongtaek ➜➜WSS Korea has a staff of 27, WHSS a staff of 44 ➜➜General manager for WHSS is K S Lee.
KR. WSS is the first International Marine Safety Service Company in South Korea to hold such a global certification. Forecast 2012. Together with his colleague, general manager K.S. Lee in the joint venture Wilhelmsen Hyopwoon Ships Service (see frame), Mr Choi is optimistic about revenue next year. The budget forecast predicts revenue of 20 million USD for account sales and 30 million USD for port sales. “We have a strong ambition to double our revenue every 3-5 years. The long-term trend has been that Asia is growing to become the world’s largest maritime hub, and this is something we as a service provider benefit from. Our prime challenge is to get the right people with English speaking skills and sales approach in their mindset. Luckily, we have a very good staff today,” says Woon-Sik Choi, who operates out of his head office located between the two major ports of Ulsan and Busan. Strong brand names. For WSS, the
Front man: Woon-Sik Choi, general manager of WSS in Korea.
Wilhelmsen brand is recognized in South Korea as a professional provider of products and services. The Unitor brand name is also known for high quality products. “In the competitive South Korean market, customer’s expectations are high. But we deliver as promised, and our next step is to become the shaper within our segments in close cooperation with the other business areas of Wilhelmsen Maritime Servicers. I think we are on a good path towards this vision,” says general manager Woon-Sik Choi in Wilhelmsen Ships Service Korea.
UNITED FAMILY: From left M.S Son, Wilhelmsen Technical Solutions, Sanjay Tyagi, Wilhelmsen Ship Management, Woon-Sik Choi, and Jin-Woo Kim, both Wilhelmsen Ships Service.
INITIAL SUPPLY: Approximately 70% of all new built vessels delivered from Korean yards are receiving initial supplies from WSS. WWWORLD 2 2011 51
Special Report: south korea
We cannot compete just on price. We have to focus on quality and innovative products with a proven track record
Wilhelmsen Technical Solutions
Serving the world’s largest yard industry
South Korea is the world’s powerhouse in shipbuilding, spearheaded by the “Big 3”: Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries. In this large market, Wilhelmsen Technical Solutions has positioned itself as a quality provider of primarily safety and fire solutions.
M S Son, area sales manager
WTS KOREA ➜➜Wilhelmsen Technical Solutions (WTS) in South
usan: “Talking to our customers
tal systems, demand is driven by regulations and we expect this to be more sought after from 2012. We also expect that our new portfolio of HVAC-R (Heating, Ventilation, Air Condition and Refrigeration) will suit the offshore industry, which is a promising market,” says Mr Son, himself an experienced engineer with background from Hyundai Samho Heavy Industries and Unitor in Korea from 1988.
is my first priority. And we are on a roll, last year our order intake increased by 50% and I hope we will reach our target revenue of 15 million USD in 2011,” says general manager/ area sales manager M S Son. Located in the maritime hub of Busan, where two of the three giants have large yards, Mr Son and his colleagues have busy days. Since the merger of Wilhelmsen Ships Equipment and Wilhelmsen Marine Engineering into Wilhelmsen Technical Solutions (WTS), the company has a portfolio of products ranging from safety-, environmental, HVAC-R and power solutions.
Strong competition. The yard industry in
52 WWWORLD 2 2011
Area sales manager: M S Son, Wilhelmsen Technical Solutions.
South Korea is dominated by a large number of small local vendors, and strong competitions where pricing of products are key elements in the tender process. WTS’ answer to this challenge is to offer packages of products for customers, making it a ‘one-stop-shop’. “We cannot compete just on price. We have to focus on quality and innovative products with a proven track record. We also provide installation of our product on the newbuildings, in close cooperation with the yards. So far this has proven a successful formula,” says general manager/area sales manager M S Son in Wilhelmsen Technical Solutions Korea.
Teamwork: Employees from WSS and WTS are more than happy to help deflating the liferaft at the end of the exhibition. From left J S Lim (WSS), M S Son (WTS), Dennis Kim (WSS), D H Park (WTS) and J E Son (WTS).
SHIPBUILDING: Wilhelmsen Technical Solutions is well positioned in the world's largest market.
A helping hand: Mrs Nam and Mrs An ensured that visitors felt welcome on the stand.
Korando – WMS Korea can do With Korean ‘can do’ attitude, employees from Wilhelmsen Ships Service and Wilhelmsen Technical Solutions joined forces and spent four days on the floor of Kormarine 2011, greeting both new and familiar customers and introducing them to our latest offers. Text: Cecilie A Heavens Photo: J E Son
usan: In today’s technological
world there is a range of channels to communicate with customers. In Korea, exhibitions still appear to be a very important venue with close to 40 000 visitors at Kormarine 2011. Kormarine is one of the major bi-annual maritime exhibitions in Asia. It is seen as an influential event for both domestic and international companies seeking to access the Asian maritime industry. Wilhelmsen Ships Service. WSS show-
Photo: Hyundai Heavy Industries
Increasing order book. “After a low order
intake for the yards during the financial crisis, the volumes are now increasing. Especially for newbuilds of LNG carriers and offshore vessels. These segments represent a large market for our safety portfolio, like fire suppression systems, nitrogen systems, and fire and smoke detection systems. We are a market leader in this segment with a 25% market share. For our environmen-
Korea was first established as a Unitor office in 1979. ➜➜Later it evolved to become Wilhelmsen Ships Equipment, before the new business area was founded in 2010. ➜➜WTS Korea today consists of 20 employees who offer solutions and products mainly to the country’s large ship building industry. ➜➜WTS Korea is part of region Asia, headed by vice president Char-Kar Young. WTS Asia has regional offices in Singapore, South Korea, Japan and China.
Kormarine 2011: The Wilhelmsen Maritime Services stand was well visited.
cased their Liferaft Rental (LRE) concept as well as the Ships Agency Redefined (SARD) campaign at the stand. “We received a lot of attention for both our LRE and SARD offers,” says W S Choi, general manager, WSS Korea. “The liferaft display attracted a lot of customers, and although it is a bit more challenging to promote SARD without a tangible element,
I think we succeeded. Overall, Kormarine is a great venue to promote and enhance the Wilhelmsen brand and our offers amongst the many local competitors,” he concludes. Wilhelmsen Technical Solutions. As at
other exhibitions this year, WTS presented their total offer within Environmental, Safety, HVAC-R and Power solutions on the stand. Further, the real size model of the Unitor Ballast Water Treatment System was displayed. WTS area sales manager M S Son is very pleased with the outcome of Kormarine and expect to see new business opportunities in the near future. “A lot of customers visited the stand to greet us and hear about our latest offerings. The Unitor BWTS display was very popular and it is clear that we are recognized for a high quality technology compared to competitors. For us, Kormarine also proved to be a good venue to monitor the competition,” he says. WWWORLD 2 2011 53
Special Report: south korea
Asset keeper: As WW’s man in Hyundai Glovis, Steinar Forberg looks after our best investment – ever.
The Asset Keeper
Steinar Forberg (64) is a Korean veteran, with a special mission. He is in charge of WW’s most profitable investment ever – the 15% share in Hyundai Glovis. The asset keeper enjoys his role as director/statutory auditor in one of the fastest growing, biggest and most profitable logistic companies in Korea, and one of the most interesting companies on the Korean Stock Exchange.
Hyundai Glovis ➜➜Hyundai Glovis is a Korea-based company special-
ized in the provision of domestic and international logistics services. ➜➜The company operates its business under two segments: car and non car logistics services. ➜➜The car logistics segment provides bulk transportation of cargoes such as coal and iron ore to Hyundai Steel, transportation of steel, tires and other automobile parts from producer to the car manufacturing units, pre delivery inspections (PDI), maritime transportation of cars and distribution of cars to the dealers both in Korea and abroad, used car auction centres and scrapping of cars in Korea. ➜➜For the Hyundai and Kia assembly factories abroad, Glovis buys, stores and packs auto parts in Korea and transports these as complete ‘knock-down’ components (CKD) to the assembly factories. ➜➜The non car segment mainly provides domestic petrol distribution, various types of logistics to third parties, logistics consulting services, etc.
I feel privileged to have a job in such a fantastic company and to be part of this dynamic Korean organisation eoul: Seven years ago WW bought shares in Hyundai Glovis
for USD 100 million. In 2009 WW sold 5% of the shares, with a profit of USD 81.7 million. Today, the remaining WW owned shares have a market value of more than USD one billion – making it the best financial investment ever in WW’s history. Hyundai Glovis has grown into a global logistic conglomerate with more than 3 000 employees operating all over the world. As the name indicates, Hyundai Glovis is connected to the Hyundai group as its main logistics provider. Largest shareholders in Glovis are the Chung family, who also hold the positions as chairman and vice chairman in Hyundai Motor Group. HMG in turn owns 20% of the shares in EUKOR Car Carriers and is also EUKOR’s largest customer. “Developing and maintaining good relations is critical in Korean business, and when we were asked to participate as owners in Glovis we saw this as an excellent opportunity to both strengthen our ties with Hyundai and for finding further synergies between Glovis and the WW group,” says Steinar Forberg.
Pre-delivery inspection: One of many tasks performed by employees of logistics giant Hyundai Glovis. 54 WWWORLD 2 2011
Perfect match. Mr Forberg is a WW veteran, and the company’s longest serving expat in Korea. Being a bachelor of commerce from the Norwegian School of Economics, he started in the joint venture ScanAustral in 1973 and rose in the ranks to become CFO in ScanCarriers/ ScanBarber. After working for 14 years in other executive positions outside the company, he returned to Wilhelmsen in mid 2002. He went to Korea initially to build up and formally establish the EUKOR administration, while the negotiations to buy the company were still going on. Since the end of 2002 when the EUKOR deal was done, he has lived in Korea, first
as CFO in EUKOR and then as director/statutory auditor for Glovis. “Glovis was established in 2001 mainly as Hyundai Motor Group’s domestic logistics provider. However, when the owners a couple of years later wanted the company to become more international, they preferred to incorporate other shareholders with a proven record for international logistics. The Wilhelmsen group was the perfect match, with our liner service and global maritime service network. And since we joined in 2004, it has been a joyride to experience and be part of the company’s fantastic volume growth and expansion of activities,” says Steinar Forberg. “The average yearly growth rate for Hyundai Glovis has been 30 to 40%, regardless of global financial crisis or whatever.” Passion and patience. South Korea is dominated by the five ‘chae-
bols’, or business conglomerates: Hyundai/Kia group, Samsung, Daewoo, LG and SK Group. The chaebol model relies a lot on a complex system of interlocking ownership. The owner of the chaebol, with the help of family members, family-owned charity and senior managers from subsidiaries, only have to control three of four public companies, which themselves control other companies that control subsidiaries. “With such a complicated structure and different cultures, including the fact that some of the big Korean companies have established their own special set of rules, it is sometimes hard to enforce a Western model of corporate governance. Passion and patience are key words. But in my current position I have experienced tremendous respect and direct access to and good cooperation with Hyundai Glovis’ top management. I feel privileged to have a job in such a fantastic company and to be part of this dynamic Korean organisation,” says Steinar Forberg. WWWORLD 2 2011 55
innovation Proud winners: M/V Trinidad engine crew and officers (standing, from the left) WPR1 Jerry Galero, 2/E Pablo Quinon, TREL Alexander Gabon, 3/E Charles Stanley Campol, master Hermant Kulkarni, C/E Swamy Yeddanapudi, E/O Angelito De Jesus and 4/E Christian Martin Blesario. (Seated, from left): MTM Virgilio De Los Santos, E/FTR Reynaldo Quino and WPR2 Mark Cagulada. Plaque ceremony: Trinidad’s master Hermant Kulkarni receives the ”energy saver plaque” from Ricardo Britton, operations manager for Wallenius Wilhelmsen Logistics in Manzanillo, Panama.
The energy savers
The crew on MV Trinidad is among the winners in the Energy Efficiency Competition 2011 with their Ship’s Energy Efficiency Management Plan (SEEMP). Text: Einar Chr Erlingsen
t sea: SEEMP is an on board
management tool, which will provide a plausible approach for monitoring ship’s and also fleet energy efficiency performance over a period of time. “This is possible by incorporating some best management practices in optimizing the performance of a ship, while ensuring safe operation and maintenance of a strict operation schedule. This tool is an important mechanism for the ship to improve the energy efficiency while she is in operation,” says chief engineer dr. Swamy Yeddanapudi, who made the entry on behalf of the Trinidad crew. MV Trinidad is operated by Wilhelmsen Lines Car Carriers (WLCC) in Southampton, UK. Big reductions possible. Monitoring en-
ergy efficiency, i.e. operational environmental efficiency is an integral part of broader company management systems. “By developing this plan, we can reduce fuel consumption and thereby carbon emissions, save money and decrease the environmental impacts from ships,” says dr. Yeddanapudi. Although the yield of individual measures 56 WWWORLD 2 2011
taken by each ship may be small, the collective efforts across the entire WW fleet will be quite significant. We from MV Trinidad believe in green ships and a green future,” says dr. Yeddanapudi. “With regards to the costs involved in implementing this plan, this is a management tool which assists the company in managing their vessels’ environmental performance without
We from MV Trinidad believe in green ships and a green future! any additional costs and could be implemented straight away with basic training to individuals on board,” says dr. Yeddanapudi. An important action. “Improving energy
efficiency by reducing fuel consumption is one of the most important actions we can take to reduce costs and emissions today and be best prepared in our industry for future challenges such as regulatory compliance and fuel price
volatility,” says Jan Eyvin Wang, president and CEO of Wilh. Wilhelmsen ASA. He was one of the competition judges, along with Kai Kraas from Wallenius Wilhelmsen Logistics (WWL) and Anders Boman from Wallenius (OW). The competition was open for all seafarers working in the WWL/WW/OW/EUKOR fleets. Wang continues: “We cannot overestimate the importance of energy in our group of companies. This applies not only to the cost side of our business but equally important is the environmental footprint we leave behind. There are no quick fixes to these issues. We have to combine competence and technology with passion and dedication. Driving down our costs and reducing our footprint is an ongoing job that has to become part of our DNA – where we all take an active role. It has been very encouraging to see the strong involvement and commitment our people have shown in this process. We would like to thank everyone involved for their contribution - our success rests on your ability to shape the way we work. This is not the end of a competition, but rather the beginning of a journey that will shape our future as well as that of others,” says Jan Eyvin Wang.
We cannot overestimate the importance of energy in our group of companies. This applies not only to the cost side of our business but equally important is the environmental footprint we leave behind Jan Eyvin Wang Ship’s Energy Efficiency Management System Quality Circle
entries and three winners
The Energy Efficiency competition
was an internal competition for seafarers working on Wallenius and Wilhelmsen owned vessels operating in the Wallenius Wilhelmsen Logistics and EUKOR fleets during 2011.
Self Evaluation/Voluntary reporting Evaluate effectiveness of planned measures Impact of actions on efficiency of ship Voluntary reporting for reorganization of efforts by other stake holders ‘Green ships’ environmentally differentiated harbour dues/ other rewards
Planning Ship specific measures Company-specific measures Human Resources development Goal setting / Targets
Monitoring Monitoring tools Energy Efficiency Operational (EEOI) Indicator/Index Establishment of Monitoring System
Implementation Establishing implementation system Training Coordination & Communication Record keeping
The jury received a total of 106 entries from 21 vessels and one site office during the 10 weeklong competition period. There were three award categories: ➜➜Technical/design improvement.
Winner: MV Turandot (OW) ➜➜Operational improvement. Winner: Trinidad (WW) ➜➜Quick win (low or no cost, quick to implement). Winner: MV Tristan (OW) The winners share the first prize pool of USD
31 839, which equates to an average vessel’s daily fuel consumption multiplied by the average daily fuel price during the competition period.
WWWORLD 2 2011 57
innovation Near land: Around 70% of global ship emissions occur within 200 nautical miles of land. NO x emissions follow closely the world’s major shipping lanes.
NOxCare picking up momentum NOxCare is Wilhelmsen Maritime Services’ environmental solution for reducing shipboard emissions of nitrogen oxide. The solution was launched two and a half years ago and has rapidly picked up momentum in the market. Text: Don Pyle
ORWAY: Around 120 systems
have been ordered to date. NOxCare is offered to ship owners, operators as an efficient solution for reducing shipboard emissions of Nitrogen Oxides up to 95 %. The system has three elements: NOxCare SCR, NOxCare 40 and NOxCare Service. NOxCare SCR is a reactor based on Selective Catalytic Reduction technology, which is the only proven technology today that produces the needed results. NOxCare 40 is a high purity urea reagent that combines with NOx gas in the funnel, producing harmless Nitrogen gas and water. NOxCare Service ensures smooth system operation throughout the system’s lifetime. Unique advantages. Kai Laatun, head of the
NOxCare product management team says that 58 WWWORLD 2 2011
none of the competitors can match NOxCare in terms of overall capability, availability and service. This advantage will become even more important as 2016 nears, when new vessels operating in Emission Control Areas (ECAs) will be required to have such a system. These ECAs will grow in size, producing a larger demand for NOx reduction systems, he says, adding that eventually there will be zones
NOxCare is an efficient solution for reducing shipboard emissions of Nitrogen Oxides up to 95%
to protect the entire coast from Norway and southward in the Baltics and Western Europe, Japan, Singapore/Malacca and China. The USA and Canada have already decided to implement such a zone from 1 January 2012. To illustrate what could happen, imagine a fully loaded vessel seeking to enter Western European or US waters but being turned away because it does not have a NOx abatement system. Laatun says that the current market for NOxCare is mainly comprised of coastal traders in Northern Europe, together with a number of global environment beacon customers. The first of these were seismic companies who frequently operate in vulnerable areas to map the geology of the offshore seabed. As the new ECA zones are implemented, international operators will have to install such systems in order to carry out normal trade.
Nitrogen oxides Nitrogen oxides are formed from burning fossil fuels. Most NOx emissions come from ships, road traffic and energy production. NO x pollutes the air, the earth and water. It is a poisonous gas, not a climate gas like CO2. NOx is also a major cause of acid rain and smog formation in urban areas. Healthwise, NOx is especially harmful to people with asthma and leads to coughing, bronchitis and reduced immune defence. The World Health Organisation estimates that 800 000 people die every year from urban air pollution.
No match: None of the competitors can match NOxCare in terms of overall capability, availability and service, says Kai Laatun, head of the NOxCare product management team. (Photo: Don Pyle) WWWORLD 2 2011 59
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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
Kenya: Happy Wilhelmsen Mombasa staff with the kids from Bangla slum’s nursery school.
Kenya/Tanzania: As an initiative to mark Wilhelmsen
A celebration to remember Shared happiness is the best kind of happiness! Our colleagues in Kenya and Tanzania decided to share their celebratory joy with those who have very little …
Forum for New Maritime Technology Wilhelmsen Maritime Services has established a forum to examine opportunities arising out of new technology or technology that is new in the WMS context. Text and photos: Don Pyle
NORWAY: The Forum for New Maritime Technology’s job is to look for opportunities that will help customers stay compliant with maritime legislation, improve their operational efficiency or reduce the environmental impact from shipping. The Forum is made up of a steering committee, a chair and ten members from across the WW group. Explaining the rationale and need for such a group, Tor Øiseth, vice president business development and regulatory affairs says that WMS’ vision to be the shaper of the maritime industry has large implications. One of them is that profitable growth must be stimulated by solutions, products and services that customers need and are willing to pay for.
The Forum: Members of the Forum for New Maritime Technology, from left to right: Louise Kloster, concept development manager, Wilhelmsen Ships Service; Thea Corwin, marketing director, Wilhelmsen Ships Service; Kai Låtun, managing director, Yarwil; Erik Lyngnes, HSEQ manager, Wilhelmsen Ship Management; Per Brinchmann, vice president technical, WW ASA; Tor Øiseth, vice president business development and regulatory affairs, Wilhelmsen Maritime Services; Filip Svensson, vice president marine operations, WW ASA; Iver Iversen, director new technology, Wilhelmsen Maritime Services: Petter Traaholt, president, Wilhelmsen Technical Solutions and Bernd Bauer, vice president sales and marketing (acting), Wilhelmsen Technical Solutions.
Ships Services 150 year anniversary our offices in Mombasa and Dar es Salaam decided to donate 150 school bags, filled with notebooks, pencils, pens, erasers and pencil sharpeners to the children living in nearby slum areas. They also found room in the budget for maize flour, wheat flour and cooking oil as well as goodie bags for all the children filled with both fruit and sodas. Our WSS colleagues collaborated with the Danish based NGO, 100% to the Children, their local partner, St. Patrick’s and Mombasa Maize Millers as sponsors in a joint effort to reach out to the children from the struggling communities of the Kibarani dumpsite and village and children from Bangla slum. “Many families live on the dumpsite itself, and even more families depend on the dump for survival. They go there every day or send their children, to search for food, clothes, materials to build their houses and to find plastic, glass and metal they can sell for recycling,” says general manager Desmond Vorster. “The communities in Kibarani and Bangla often do not have access to food, health or education, except for through the charities and the NGO’s that work in the area,” Mr Vorster says. 100% to the Children and St. Patrick’s work together to keep two nursery schools and two primary schools up and running, which means they are constantly on the search for partners who will support them with stationary and food for the children in the schools.
Happy girls: Four of the children in the Bataan SOS Children’s Village
Continued cooperation with SOS Children’s Villages We have renewed our sponsorship agreement with SOS Children’s Villages for another period. Philippines: The cooperation with SOS Children’s Villages started in January 2009 when we chose to become main sponsor of SOS in Norway and to direct our support to a children’s village at Bataan, Philippines. “We chose to continue to support SOS Children’s Villages because we have great respect for the job they are doing for neglected children worldwide,” says Bjørg Ekornrud, brand manager, Wilh. Wilhelmsen Holding. “We want to contribute to local societies where we have activities. Through the cooperation with SOS Children’s Villages we are able to work on a long-term basis and contribute to make life better for many children.” The Bataan village is integrated in the local community and was opened in 2009. It consists of six two-story houses, with one family of 10-11 children and one mother on each floor. We support three of these houses, House of Sarah, House of Hannah and House of Esther. Stable and long-term care is central for SOS Children’s Villages. This is a good match to our corporate culture which
is based on values and sustainability. Wilhelmsen Ship Management has operated a manning office in Manila since 1978, and today around 3 500 Filipino seafarers are sailing for us. This is the main reason for us to become a partner with SOS in the Philippines: one way to give something in return to a country that is so important to us. SOS Children’s Villages is the world’s largest humanitarian organisation for orphaned and neglected children. They run more than 470 villages in 132 countries. The organisation gives the children a safe home and helps them shape their own future. In addition they prevent children being left alone by supporting exposed families as well as contributing to the development of local communities. The organisation is non-political and religiously neutral, and works independent of nationality, culture and religion. Read more about SOS Children’s Villages at www.sos-childrensvillages.org and www.sos-barnebyer.no
We chose to continue to support SOS Children’s Villages because we have great respect for the job they are doing for neglected children worldwide Bjørg Ekornrud, brand manager, Wilh. Wilhelmsen Holding
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Gry Brandsnes: “We want each employee to have a good understanding of how he or she can best contribute, their most important priorities, what they are expected to deliver, their personal strengths, development needs and options for growth.”
to the next level
New technology and easy access to knowledge is transforming how global companies think about learning and development for employees. Self-learning, on the job and on demand learning is all about empowering the learner by giving them easy access to knowledge. Text and photo: Stacey Trodal
orway: “Today training is much
more than sitting in the classroom and WW is stepping it up.” Head of WW Academy, Johanna Sundén, is ready to take on 2012 by introducing new and re-vamped learning tools and methods. “What impresses me most is WW’s dedication to be a learning organisation. There is a constant flow of great training initiatives from the organisation and we have executives who preach learning and development in every AOP (Annual Operation Plan) workshop. That shows passion and commitment,” says Sundén. In 2012 the WW Academy team plans to build upon and harness the group’s learning potential even further through the introduction of a new strategy that focuses more on demand and on-the-job training. Re-vamped services: “We have re-vamped our consultative services to cover much more than classroom and eLearning. Next year we hope to provide the business area learn62 WWWORLD 2 2011
A shaper role: Hilja Tuori (left), Emilie Lundwall and Johanna Sundén are passionate about securing WW a shaper role when it comes to learning and development in the maritime industry.
coaching Individual coaching: can provide leaders
and employees with support when for example transitioning into a new position, needing to modify behaviour, handle stakeholders, stress management etc.
Typical coaching areas: coaching for
increased performance, coaching for new skills, coaching for different behaviour, coaching on pressing problems.
Team coaching: a coach is working with a
team of leaders, a new team or an existing department. It is suitable when the team needs agreement on what is needed, what the objectives are and how the whole team will work together to achieve those objectives. It can be helpful when people are not working well together or when the team does not communicate effectively.
ing project managers with different learning methods such as stretch assignments, coaching, mentoring, simulations, games, dilemma boards, guides, check-lists, on the job learning, manuals etc,” says Sundén. The Academy team knows its re-vamped coaching initiative will enable managers and employees within the group to increase efficiency and performance. “Coaching has proven to be an effective development tool for an organization when it is time-bound and closely linked to business goals and ambitions. It enables both individuals and teams to quicker adjust to change, agree on rules for engagement and increase their performance. From today we can provide leaders and teams with a pool of quality assured external coaches. They will be used for individual as well as team development. In early 2011 the Academy and the business areas trained an additional 20 global internal coaches running both New as a manager training, LIFO workshops and 360 surveys,” says Sundén.
Performance appraisal with a plus The annual performance appraisal (PA) is probably WW’s most important human resources tool. From November 2011 the PA will have a plus: a wider focus with stronger links to business goals and objectives. Text and Photo: Don Pyle
Norway: For the past one and a half years a group of human resources specialists from across the business has been working to make the annual PA process more relevant to both the business and the employees. The result is a PA that goes beyond measuring achievements against goals and goes to the heart of the company’s value system. The result is unique. It is WW from start to finish. Gry Brandsnes, leader of the project explains the background. Up to 2010 the PA had not been updated in line with the company’s development. Internal climate surveys showed that the employees thought the PA is important but were not satisfied with how it was practiced,” she explains. PA project. A PA project group was established in May 2010 with the mandate to study best practice in the field. The objective was a standardized PA template that could be used worldwide to support the company’s strategy to develop a performance culture. That summer a reference group was selected to give feedback on the PA. It found that the PA is important but does not give enough feedback related to focus areas, goals and personal development. The PA template was revised. In November a pilot of the revised PA template was tested with positive results on the customer service group in Norway. The results were positive, so the decision was made to conduct a larger pilot – a soft launch – on a cross section of 735 employees in the network. The findings were that instructions for using the template needed improvement, managers should be given more training on feedback and coaching and the rating scale should be clearer. Feedback from the soft launch was used to make further improvements to the template
and prepare for a general rollout in November 2011. The project group also started development of a number of training initiatives, including an eLearning module. System support to the process has also been developed in PeopleNet, Manager Self Service and Employee Self Service. Gry Brandsnes emphasises that the revised PA will provide the employees with feedback about their performance from the value perspective. For example, each employee will be evaluated on to what extent they actively seek to understand customer needs; analyses situations successfully and provides thoughtful solutions and works effectively with other functions and businesses. Four parts. The revised PA starts with a review of accomplishments against previously defined goals. Following this is a discussion of performance from the value perspective. Next is a discussion of goals for the coming 12 month period in relation to the company’s Annual Operating Plan or improvement of ongoing activities. Finally is a discussion of personal development needs and actions for the period ahead. Feedback is built into each phase. “After the PA, we want each employee to have a good understanding of how he or she can best contribute, their most important priorities, what they are expected to deliver, their personal strengths, development needs and options for growth,” says Gry Brandsnes.
For more information about the Performance Apprasial, go to the intranet and click on Human Resources > Performance Appraisals on the top menu. WWWORLD 2 2011 63
Doing things the
We are often faced with moral dilemmas when doing business – dilemmas that vary from one culture to the next. So how are we to react? The right answer is: the ‘Wilhelmsen way’.
Singapore: Eager participants at the governance workshop are (from the left) Tan Choon Seng, Jasmine Lim, Anne Choo, Siow Zi Wei and Crislyn Chua.
Text: Einar Chr Erlingsen
o ensure a common approach to our governance framework, Wilhelmsen Ships Service (WSS) has completed an awareness campaign involving a series of local workshops (in local languages), that started with an online course to ensure that all employees fully comprehend the message of governance within the Wilhelmsen group. As different regions are faced with different dilemmas, part of the agenda was to discuss local dilemmas in order to make the training even more relevant to the participants. For example, when WSS employees in The Netherlands discussed how to deal with potential fraud cases or with trusted customers who are on a credit block, their colleagues in Iraq and Jordan focused on issues such as the custom of giving gifts and entertainment, conflicts of interest and facilitation payments.
The best part. “The best part of the pro-
gramme were the dilemma discussions,” said Ryan Bishop, general manager Gulf Coast/
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Region Americas. “They prompted lively discussions and everyone personalised the message. In many cases, the topics came down to common sense; leading to involvement from people at all levels.” He was not alone in appreciating the value of the programme for day-to-day decisions. Nora Cul, sales support manager China
Governance training ➜➜Local HR carried out mini workshops in local
languages to ensure that all WSS employees fully comprehend the message of governance in the Wilhelmsen group.
➜➜The governance framework is intended to help
employees make the right decision, based on our company values.
➜➜99% of 4 333 WSS employees worldwide have
completed the workshops.
commented: “Good governance enables the company to improve the ability to make decisions. We can focus our energies on primary job responsibility when there is no confusion regarding who is responsible for what decisions and how they are made.”
The contribution of real-life situations to these discussions has given us a realistic bank of dilemmas to use in future assignments Karianne Johansen, Training manager WSS
A ‘dilemma bank’. WSS training manager
Karianne Johansen comments: “It is good to see how individuals have identified with the topics under discussion, and closely related these to their work situation. The contribution of real-life situations to these discussions has given us a realistic bank of dilemmas to use in future assignments.” Jane Subramaniam, assistant manager quality assurance, Malaysia agrees: “Corporate governance is important to establish an honest and efficient organisation. It works as a guideline on the dos & don’ts and helps us to make safe decisions when faced with dilemmas,” she said. Which pretty well sums up the intentions of the whole governance training programme.
Malaysia: How should we act? Business dilemmas are discussed by (from the left) customer services & documentation clerk Tiong Lee Ping, shipping clerk Anson Baya, shipping supervisor Edmund Selong, operations manager Robert Chua and general manager Winston Loo.
Local approach: To make the discussions all the more relevant, the participants were encouraged to bring up local business dilemmas. From the left: Remco de Goede, ships agency operator Rotterdam, Els Born, invoice coordinator Centra Europe, Ronald Laaksonen, port sales engineer Netherlands, Tom van Veldhuizen, expeditor IDC (International Distribution Center) and Mark van Loon, warehouse operative IDC. WWWORLD 2 2011 65
YOUNG TALENTS 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.
ADITYA SAXENA Regional manager Wilhelmsen Ship Management Americas, Houston.
Meet our new maritime trainees In 2011, Anders Lenning and Kristin Skaslien began their two year placement as maritime trainees in the WW group. WW World caught up with them to learn more. Text and photo: Stacey Trodal
orway: “Why did you choose the
path of being a maritime trainee?” Kristin: “The maritime industry is a huge global industry, and I find this very exciting. Starting as a trainee gives me a great opportunity to see different aspects of this industry.”
Maritime trainees: Kristin Skaslien (left) and Anders Lenning have passed through ‘the needle’s eye’ to become maritime trainees.
Anders: “Maritime trainee offers the possibility to work with many different segments in a company. This suits me, as I prefer knowledge from various areas rather than extreme in-depth knowledge within a certain field. The networking aspect of the programme is an equally important factor that makes the programme very attractive, as I value the possibility to meet new people and establish contacts highly.” “In your own opinion, how challenging is it for young people coming into the maritime industry?” Kristin: “It’s tough! Becoming a maritime trainee is a long process, and the recruitment process was pretty tough. The trainee programme itself is really popular, and the competition was hard with a lot of good candidates. You must be driven, but also in my opinion have a portion of luck to get through the needle’s eye. I feel really privileged to be a part of the program.”
Maritime Trainee is a programme operated by the Norwegian Shipowners' Association (NSA) as a service for companies in the Norwegian maritime industry. Wilh. Wilhelmsen has been an active supporter of the programme, with 10 trainees being placed to work with the WW group since 2005.
expect graduate students to have had several relevant summer jobs, but not all of them offer summer jobs to students themselves.”
Anders: “I believe it is very difficult. Compe tition is fierce. ‘Everyone’ has a Masters or equivalent. So you need to gain experience “What advice would you give to the next trainees, or people thinking of becoming a maritime trainee?” through summer jobs and other initiatives that differentiates you from the competition. Kristin: “Be curious and ask a lot of questions! Getting relevant summer jobs isn’t necessarily For people thinking of becoming a maritime easy and often you need contacts, like I had, to trainee, get yourself relevant job experience help you get one. Ironically, many companies through summer student internships or 66 WWWORLD 2 2011
You must be driven, but also in my opinion have a portion of luck to get through the needle’s eye. I feel really privileged to be a part of the program
similar, write an interesting but not too long application, and be yourself at the interviews!”
Age: 25 Educational background: Bachelor in logistics engineering. Master of Science in technology management. How would you describe yourself: A happy and sporty girl, eager to learn and ready to conquer the world! Current working position: Wilh. Wilhelmsen Holding within Corporate Finance Strategy and Investor Relations. Anders Lenning
Anders: “Personally, I try to trust in myself and believe in what I am capable of. Being humble and honest is always important and gets you so much further. As a tip to up the chances, I would say try to be creative in what you do apart from studying, in order to get a different spice on your application.”
Age: 26 Educational background: M.Sc Marine Technology. How would you describe yourself: A creative team player with a great humour, who is determined and responsible. Current working position: Wilhelmsen Ships Service, where I am involved in project logistics and the defence segment.
There is no problem that Houston can’t solve Remember the famous words from
Apollo 13 on its way to the moon in 1970? “Houston, we have a problem!” At WSM Americas we try to keep up the good tradition of problems solving in our daily operations. "If it’s not this, it’s that. If it’s not something, it’s something else." That, in the words of my favorite author P. G. Wodehouse, about sums it up as far as our industry goes. One has to be always prepared for this, that or something. It is precisely at the moment when we think we own the world, our KPI's (Key Performance Indicators) well in hand, that fate comes in with the rock in the stocking! A ROUGH RIDE. It has been a rough ride and
we have learnt to roll with the punches but we have also learnt to get stronger than ever. I always try to instill a sense of optimism in our team and convey that hard work and listening to the customer will help us surmount obstacles thrown up by such sundry nuisances as a weak global economy. The economic situation for ship owners in the Americas is weak and affects our business enormously. Being dependent on mostly industrial clients, we see a huge drop in the clients’ product demand. This inhibits our ability to seek revenue increases as the clients are already in a cost control mode and we have to work with them. What we promote is our solid principles of governance and transparency and our customers value that. All the customers we have acquired in the recent past have been on account of our transparency and governance, easily demonstrable online on GIMS and other
web based programs. We are sitting in the middle of a huge offshore and burgeoning LNG industry. Apart from our focus on core ship management, we are in the process of selling our services to these segments as we believe they can be the drivers of growth in the near future for WSM as well as our group companies. We believe very strongly in promoting any portfolio that the group offers. IMPORTANT MILESTONES. This year we had several milestones. We were among three shortlisted international companies for the 2011 Safety at Sea awards with Fairplay IHS. We also celebrate 20 years of having the Vulica Shipping self-unloaders as our clients. In addition we now have six years of our resort ship, 'The World', going through Port State Control inspections with zero deficiencies. These are great achievements by our team here and they deserve to be appreciated for making it happen. I think, being located in Houston offers immense opportunities in non-traditional fields and we have to evaluate the best opportunities and act on them. Meanwhile, we are here and if anyone in the group needs local assistance, just say "Houston, we have a problem!"
WSM AMERICAS ➜➜Main office: Houston, Texas ➜➜Established: 2006 (in New Orleans before that) ➜➜No. of employees: 13 ➜➜No. of ships on management (crew and full
➜➜No. of seafarers: 500 positions onboard
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Wilh. Wilhelmsen was established as an independent company in 1861 and have 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.
Tough times and a giant contract The decade spanning 1975 to 1985 was an expansive period with huge investments in new ro-ro ships, offshore vessels and drilling platforms. When the liner traffic to the Middle East dropped dramatically at the beginning of the 1980s and the oil price fell like a rock in the winter of 1986, WW experienced great difficulties repaying its loans. Text: Hans Chr Bangsmoen
orways: This resulted in a mora-
torium agreement with the banks covering a 30-month extension on 60% of the installments, while continuing to pay interest. A number of negative initiatives were implemented, including giving a large number of employees, both at sea and on shore, their notices, selling some vessels and flagging out others. All scheduled arrangements and events in connection with the 125th anniversary were cancelled and the atmosphere in the organization was naturally fairly gloomy. However, some constructive events took place during this tough period, and the most positive was referred to in the Norwegian press as follows: “Wilh. Wilhelmsen, which is currently experiencing a downward trend, has actually struck it lucky in Brazil. The company is presently securing the biggest contract ever in the history of Norwegian shipping. The total contract is worth NOK 3.5 billion and will ensure the operation for two newbuildings for 15 years to come.” The agreement was made between Wilh. Wilhelmsen and the Brazilian shipping company Vale do Rio Dove Navegaçao – Docenave and included the building and chartering of two large ships for transporting iron ore from Brazil to Japan, with a return cargo of oil from the Middle East to Brazil. With a capacity of 310.000 tdw, the ships were the biggest in the world and were classified as Very Large Ore/ Oil Carriers – VLOOC. The two giants Docefjord and Tijuca were delivered in 1986/1987. This deal was a part of the largest industrial project ever: mining and exporting iron ore from Carajas in the Amazonas Basin. A one thousand kilometer long railway line to transport the ore to a new
DOCEFJORD: With its sister ship Tijuca she was the biggest in the world in its kind. (WW photo archives) harbour was finished in 1985. The vessels were formally owned by Liberian company WilSea Inc. and registered in Monrovia. Barber Ship Management had the technical-maritime operations with Norwegian senior officers. The chartering department in Wilh. Wilhelmsen was in charge of commercial operations. Without actually making too close comparisons, we are reminded of the contracts for the largest ships of their time, the 13.000-tonnes vessels Tellus and Themis in 1911. These were also built for transporting iron ore with a return cargo of coal, the main energy source of that time. In the years that followed, Docefjord and Tijuca carried out their three-month round
trips with iron ore to Japan and oil to Brazil. Eventually, the iron ore transport changed. Towards the end of 1999, Docenave requested that the vessels be used solely as tankers and in the spring of 2000, after 14 years of excellent cooperation the Brazilian partners announced that they wished to cancel the iron ore contract, with a compensation to be paid to owner company WilSea Shipping Inc. The joint venture company was dissolved that same autumn and the partners took over one vessel each. WW took over Tijuca, which then operated in the tanker market until the spring of 2002, when the ship was sold to Bergesen d.y. Bergesen had acquired the sister ship Docefjord two years previously.