btj 1/2013

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№ 1/2013 (51), JANUARY/FEBRUARY

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173

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32

Cruise traffic

The Baltic Connection

Baltic shipyards

Reaching the third bottom

2012 highlights

Baltic Transport

Messe MünchenJune 4 – 7, 2013

TL13_Aussteller_205x270_E.indd 1 28.09.12 15:04

Editorial

1/2013 | Baltic Transport Journal | 3

Baltic Transport Journal

President of the Boardbogdan ołdakowski

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Publishing Directorpiotr trusiewicz

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Editor-in-Chieflena lorenc

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Executive Editormarek błuś

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Copy Editorprzemysław myszka

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Contributing writerskatarzyna błońska, cecilia carlsson,

andrew goltz, marek grzybowski, gustaf höök, janusz kasprowicz,

gun rudeberg, mattias rust, łukasz sikorski, edel storelvmo,

krzysztof urbaś, dirk visser, marcin wełnicki

English Language Editoralison nissen

Art Director/DTPdanuta sawicka

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Baltic TransportJournal€ 19/75 PLN (INCL. 5% VAT)

b i m o n t h l y - d a i l y c o m p a n i o n

№ 1/2013 (51), JANUARY/FEBRUARY

Baltic Transport Journal is an official media partner of:

ISSN

173

3-67

32

Cruise traffic


Baltic shipyards

Reaching the third bottom

2012 highlights

Baltic Transport

Dear Readers,

A.P. Møller-Mærsk 20; ACM Energy 66; Admiralteyskiye Verfi Shipyard 38; Africa Express Line 30; AGA 49; Aida Cruises 59; Aker Shipyard 41; Allianz pro Schiene 61; Älvsborg Ro/Ro AB 19; Anholt Offshore Wind Farm 22; APL 10; APM Terminals 18, 19, 20; Arctech Helsinki Shipyard 38, 39, 41, 42; Azamara Cruises 59; Baltic Container Terminal Gdynia (BCT) 10; Baltic Reefers 30; Baltic Workboats 43; Baltiyskiy Zavod 38, 42; Birka Cruises 59; Bodewes Shipyards 42; C.RO Ports 19; Caledonian Maritime Assets Ltd (CMAL) 59; CargoNet 62; Carnival Cruise Lines 59; ČD Cargo 10; Celebrity X Cruises 59; Chevrolet 10; Chiltern Railways 61; China Railways 62; Chiquita Brands International, Inc. 30; Clean Cargo Working Group 10; CMA CGM 29, 30; Compagnie du Ponant Yacht Cruises 59; Compagnie Fruitière 30; Copenhagen Malmö Port 50, 52; Cosiarma 30; Costa Cruises 59; Crist Shipyard 38, 39, 42; Cruise & Maritime Voyages 59; Crystal Cruises 59; CTL Logistics 60, 66; CTL Maczki-Bór 66; Cunard 59; DB Schenker 60; DB Schenker Rail Poland 10, 11; DBS 60; Deepwater Container Terminal Gdańsk (DCT) 20, 21, 23; Det Norske Veritas (DNV) 11, 66; Deutsche Bahn 61; DFDS Seaways 9, 19, 41; DHL 21; Dole Food Company, Inc. 30; Dole Ocean Cargo Express 30; DONG Energy 22; Dynamar B.V. 30; Ecuadorian Line 30; Elering 51; Energy Petrol 66; Euler Hermes Exportkreditversicherung 22; EUROGATE 10, 18; Fayard A/S 42; Finferries 41; Finnlines 10; Flensburger Schiffbau-Gesellschaft (FSG) 22, 40; Fred Olsen Cruise Lines 59; Freightliner PL 60; Fresh Del Monte Produce Inc. 30; Frigoship 30; Futurum 62, 63; Fyffes PLC 30; Gasum 51; GAZ 10; Gdańsk Lech Wałęsa International Airport 21; Gdańsk Shipyard 38, 42; Gdynia Container Terminal S.A. 10; Germanischer Lloyd (GL) 11, 44; GF Group 30; GL Garrad Hassan 44, 45; GL Noble Denton 44; Global Container Service 10; Global Ports 20, 21; GM Korea 10; Goodman 10, 21, 23; Great White Fleet 30; Green Cargo 62; Hamburg Süd 29; Hansa Touristik 59; Hapag-Lloyd Lines 59; HHLA Hamburger Hafen und Logistik 10, 11; Höegh Autoliners 36; Holland America Line 59; Hupac Intermodal 9; Iberocruceros 59; Incat Crowther 43; JadeWeserPort 18; Karstensens Skibsværft A/S 38, 39, 42; Kemira 50; KfW Ipex-Bank GmbH 22; Kombiverkehr 9; Kristina Cruises 59; Kuehne + Nagel 10, 21; Legatum Institute 16, 17; Lindblad Expeditions (NG) 59; Linde Group 49; Lloyd’s Register 10; Lürssen Group 40; Maersk Line 10, 18, 19, 20, 23, 29, 30, 36; Maestro 30; Marine Projects Shipyard 38; Maritime Cargo Processing 66; Mayfair SE 11; Mediterranean Shipping Company (MSC) 29, 30; Meriaura 41; Meyer-Neptun Group 41; Moby Dik 21; MSC Cruises 59; Neptun Werft 41; Network Shipping 30; Nevskaya Pipeline Company 19; Nevsky Shipbuilding – Shiprepair Plant 38, 39, 42; Noble Caledonia 59; Noboa Company 30; Nordic Bulk Carriers 33; Nordic Yards 38, 41; Nordvästra Skånes Renhållning (NSR) 50; Norilsk Nickel 33; Norwegian Cruise Line 59; Novatek 33; N-Trans 20; NYKCool 30; Oceania Cruises 59; Odense Steel Shipyard (OSS) 37, 38, 39, 42; Onega Shipyard 42; Öresundskraft 50; OW Bunker 36; P&O Cruises 59; P+S Werften 37, 38, 40; Partner Shipyard 42; PCC Intermodal 11; Peene-Werft 40; PensionDanmark 22; Per Aarsleff A/S 11; Peter Deilmann Cruises 59; Petrolesport 21; Phoenix Reisen GmbH 59; PKA 22; PKP Cargo 60; PKP InterCity 61; PKP PLK 60, 61; Plantours Kreuzfahrten 59; Polferries 10, 34; Polzug Intermodal 11; Pomeranian Logistics Centre 10, 21, 23; Port Aarhus 48, 50, 51; Port Arkhangelsk 32, 33; Port Bilbao 59; Port Copenhagen 34, 48, 50, 51, 52, 55, 57, 58; Port Darłowo 9; Port Dover 59; Port Dudinka 33; Port Gdańsk 9, 10, 20, 23, 34, 57; Port Gdynia 8, 9, 10, 23, 55, 57; Port Gothenburg 8, 18, 19, 23, 36, 55, 57, 58; Port Halland 10; Port Halmstad 10; Port Hamburg 10, 11, 18, 23, 58, 59; Port Helsingborg 18, 48, 50, 51; Port Helsinki 10, 21, 48, 50, 51, 52, 55, 57, 58; Port Kaliningrad 8; Port Kemi 57; Port Kiel 9, 55, 57, 58; Port Klaipėda 57; Port Kokkola 62; Port Kotka 21; Port Liepāja 18; Port Lisbon 59; Port Luleå 57; Port Malmö 58, 48, 50, 51, 52; Port Map Ta Phut 33; Port Mariehamn 49, 57; Port Murmansk 32, 33; Port Narvik 62, 63; Port Pori 62; Port Rajin 33; Port Riga 55, 57; Port Rønne 57, 58; Port Rostock 18, 52, 55, 57, 58; Port Rotterdam 9, 23, 33; Port Saaremaa 57; Port Sabetta 33; Port Sassnitz 18, 35; Port Southampton 59; Port St. Petersburg 19, 21, 23, 55, 57, 58, 59; Port Stockholm 11, 34, 48, 49, 51, 52, 53, 55, 57, 58; Port Tallinn 8, 48, 49, 51, 52, 55, 57, 58; Port Travemünde 18, 58; Port Trelleborg 18; Port Turku 48, 49, 51, 52; Port Ust-Luga 8, 10, 19, 20; Port Varberg 10; Port Ventspils 9, 18; Port Visby 57, 58; Port Vostochny 21; Port Warnemünde 57, 58; Port Yokohama 33; Port Ystad 8, 10, 34, 35; Ports of Szczecin-Świnoujście 9; 10, 34, 35; Pöyry Management Consulting 49; Princess Cruises 59; PTKiGK 66; Pullmantur 59; Rail Polska 60; Regent Seven Seas Cruises 59; Remontowa Shipyard 38, 39, 42; Riga Shipyard 43; RollDock 22; Rosterminalugol 8; Royal Caribbean International 59; Ruscon 10; Russian Railways 62, 66; Saga Cruises 59; Samsung Heavy Industries 33; Scandlines 18, 40; Schavemaker 20; Schoeller Arca Systems 66; Seabourn Cruise Line Ltd. 59; Seago Line 10, 18; Seatrade 28, 29, 30; Seatruck Ferries 40; SEB 66; Sextant Con-sultancy 28; Siem Shipping 30; Siemens 11, 22; Silesian Logistics Centre 11; Silversea Cruises 59; Skorostnye Magistrali 66; Søby Shipyard Ltd 38, 39, 42; Sovcomflot 33, 41; Spirit of Adventure 59; Star Clippers 59; Star Reefers 30; Stena Line 8, 18, 36; Stena Oil 36; Strabag 11; STX Finland Rauma Shipyard 38, 39, 41; STX Finland Turku Shipyard 38, 39, 41, 49; Svitzer 43; Swan Hellenic Discovery Cruising 59; Temir Zholy 62; Terramar 10, 21; Tetra Pak 66; Thomson Cruises 59; Tjörnvarvet AB 39, 43; Topoil 36; Transneft 19; TransOcean Kreuzfahrten 59; Transport & Logistics Complex 10; Transportation Investments Holdings Limited 20; Transportutvikling AS 62; TripAdvisor.com 61; TUI 41; TUI Cruises 59; U.N. Ro-Ro 22; UKI Workboat Ltd 38, 42; Ulusoy Sealines 22; United Shipbuilding Corporation (USC) 41; Ust-Luga Container Terminal 10; Vattenfall 66; Viking Line 49, 50, 51; Volkswerft 40; Volvo 8; Vopak E.O.S. 21, 51; Vostochnaya Stevedoring Company 21; Voyages of Discovery 59; VR Group 62; Vyborg Shipyard 38, 42; Wadan Yards Group AS 41; Wärtsilä 49, 66; Western Baltija Shipbuilding 42, 43; WesternGeco 22; Whirlpool 21; Windstar Cruises 59; Yanino Logistics Park 21; Yantar Shipyard 42; Zegrahm & Eco Expeditions 59.

C o m p a n y i n d e x

W ith a new year starting it is a good time to look back at the most important events which occurred the year before. By doing this we often realize that, despite of the times of austerity and perhaps facing an uncertain future, many companies aren’t hesitating to explore further ways to boost their competitiveness and turn bold

thoughts into convincing actions, sometimes crucial for the entire sector. As 2012 was nearing its end our editorial team recognized 10 facts which had a key impact on transport and logistics patterns in the Baltic Sea region last year. We describe to you these events in the article entitled “2012 highlights” on pages 18-22. Alike a year ago, we were happy to honour the selected market players with special BTJ certificates, awarded to the most trend-setting ideas, decisions and projects. To the ones who – in our eyes – are really changing the market standards, facilitating further growth and development in the region’s transport sector. The Baltic Transport Journal will officially present the awards during an Evening Gala Dinner at Transport Week on 6th March, 2013, in Gdańsk, Poland.

The start of the new year is also an ideal occasion to take a glance into the future and reflect on the changes we want, or need, to make. The continuous growth in freight traffic imposes a question of how to ensure long-term sustainability of such growth and what policies to implement on such matters as globalization, trade and development, environmental sustainability, energy security and climate change. Many of these topics are tackled on the pages of the current issue. I devote your attention to a piece written by Katarzyna Błońska entitled “Stepping forward”, which summarizes the BIMCO Reflections 2013 – a thought-provoking analysis of the challenges facing the shipping industry today and during the coming year – as well as the article “Policy in tune with science?” written by Mattias Rust of WWF regarding the impact of freight transport activity on the environment and human health and the consequent need to decrease it. For more insight into matters related to the environment, go to the BPO Newsletter section.

With this edition at hand, we also aim to provide you with the latest data on the shipyards as well as cruise sectors. Marek Błuś in the Report (“Reaching the third bottom”, page 37) describes the Baltic shipbuilding industry at a turning point, showing how the yards, after losing the market for most kinds of cargo vessels, are dealing with the new situation. The second main section of BTJ – Focus – brings more positive news. The BSR still remains a desired destination among tourists, as around 600,000 passengers, on over 400 round trips, will this year visit our beautiful region to discover its nature, cities, art and culture, not forgetting to relax and enjoy life at the same time. And since it’s our first issue this year, let me wish you – with the New Year – just that. And of course facing the everyday market challenges with boldness, persistence and creativity.

Lena Lorenc

4 | Baltic Transport Journal | 1/2013

Contents

14Economy

14 An idea that tips the scales – BSR countries’ innovation level

16 Divided in two – BSR countries in the 2012 Legatum Prosperity Index™

18Maritime

18 2012 highlights – Last year’s most important events for the BSR’s transport sector

24 Stepping forward – BIMCO Reflections 2013

26 Policy in tune with science? – The Ballast Water Management Convention

28 Hot war over reefers – Seaborne perishable trade

32 A new ‘great game’? – The Northeast Passage

34 Growth, stabilization and opportunities – Interview with Björn Boström, Managing Director of the Port of Ystad

36 Green Gothenburg – Supporting eco-friendly shipping

3Regular columns

3 Editorial6 BTJ Calendar of events8 Market SMS Extended10 What’s new?12 On the roads: In the multimodal

mood64 Collector’s corner65 Transport miscellany66 Who’s who

44NewslettersVILA46 Unleashing the potential of the

Vistula Lagoon – Interview with Urszula Kowalczyk of the Maritime Institute in Gdańsk, Leader of the project “Opportunities and Benefits of Joint Use of the Vistula Lagoon – VILA”

47 About the project

LNG in Baltic Sea Ports48 About the project49 LNG news & events50 Project’s partners

Baltic Ports Organization52 Closer to the environment –

Interview with Gert Nørgaard of CMP, Chairman of the BPO Environmental Working Group

53 The first step – Self Diagnosis Method

53 Port Environmental Management – demonstrating your licence to operate

Contents


37Report

Baltic shipyards37 Reaching the third bottom44 Jacking-up the business – Vessels

for offshore wind farms

55Focus

Baltic cruise traffic55 The Baltic Connection – A closer

look at the upcoming cruise season

60Overland & Logistics

60 From bad to worse to… better? Poland – Europe’s railway capital?

62 Giving the North a rail push – Narvik-Russia rail corridor

I n t h i s i s s u e

”Maersk Line, in 2012 having lifted some 700,000 40’ High Cube full reefer containers with its 470,000 TEU reefer box fleet is the largest reefer container carrier”.

Dirk Visser, Dynamar B.V. Read more in the article Hot war over reefers. Seaborne perishable trade, pgs. 28-29


BTJ calendar of events

BTJ 1/2013 (Jan.-Feb. edition) Report: Baltic shipyards | Focus: Baltic cruise trafficIssue distributed at:

Transport Week 2013, 5-7 March 2013, PL/Gdańsk, www.actiaconferences.com/eng.htmlActia Conferences invites you to the 3rd edition of international Transport Week which will be held in Gdańsk. The event is a discussion platform for representatives from the maritime, railway and intermodal sectors. Transport Week 2013 will be accompanied by conferences, exhibition areas, discussion panels, seminars and topped with an evening gala dinner.

The 3rd FPSO Vessel Conference, 6-7 March 2013, UK/London, www.wplgroup.com/aciThe 2013 edition of the conference goes under the theme “defining investment into new markets and streamlining technologies to maximize profits”. The two-day programme includes, among others, 2013 FPSO deliveries, upcoming projects and market forecasts as well as examining the booming energy & petroleum sectors in Brazil and West Africa.

Cruise Shipping Miami 2013, 11-14 March 2013, US/Florida, www.cruiseshippingevents.com/miamiFor more than 28 years, Cruise Shipping Miami has been the leading international exhibition and conference serving the cruise industry by bringing together buyers and suppliers for a week of networking, sourcing and education. During the 2013 edition you will have the oppor-tunity to launch new products, unveil exciting services, meet cruise industry buyers and attend conferences covering up-to-date topics.

The 10th Green Ship Technology Conference, 12-14 March 2013, DE/Hamburg, www.informamaritimeevents.com/event/greenshiptechnologyThe annual conference focused on green ship technologies will deliver, among others, the CEO dialogue on the changing face of shipping and the environment, a spotlight panel about financing technologies meeting the new regulations (IMO, ballast water) in a tight economic climate as well as four afternoon workshop sessions.

SITL Logistics Solutions, 26-28 March 2013, FR/Paris, www.sitl.euSITL Logistics Solutions will offer the transport & logistics community unique access to the complete range of products and innovative services aimed at distribution and mastering the supply chain of tomorrow. Apart from exhibitions, SITL Logistics Solutions will deliver dozens of conferences.

Next Generation Offshore Support Vessels Summit, 10-11 April 2013, UK/Edinburgh, www.wplgroup.com/aci/confer-ences/eu-ewp3.aspThe summit will focus on ways to achieve operational excellence while using the newly designed and old tonnage Offshore Support Vessels in Europe and other markets. The event will include case studies on European OSV ship owners and operators, oil & gas majors, giving an overview of the current industry challenges, caused by the rapid increase in deep sea exploration and production activities, the new standards of the OSV performance requirements and recent developments within the oil & gas sector and renewables.

Wind Farm Development: European Offshore 2013, 10-11 April 2013, UK/Edinburgh, www.wplgroup.com/aci/confer-ences/eu-ewp3.aspThe event will tackle such hot topics as growth markets for offshore wind in Europe, the availability & securing funding for wind projects, harbour & port activities regarding infrastructure requirements for offshore wind installations, onshore connectivity and grid integration as well as advancements in blade and turbine technologies. The event will be topped with case studies along with an outlook on future challenges and opportunities.

Scandinavian Rail Development 2013, 16 April 2013, SE/Stockholm, www.europeanrailwayreview.com/events/upcoming-events/scandinavian-rail-development-2013/overviewThe Nordic countries continue to recognise the true value of continued investments into their rail networks with high speed plans and communications & signalling projects still topping the agenda, even in these chastened economic times. Presenting leading operators, transport authorities and infrastructure owners from the region, Scandinavian Rail Development 2013 will bring together all significant stakeholders from the Nordic region’s high speed, liberalised network.

Scandinavian Shipping & Ship Finance Conference 2013, 17-18 April 2013, DK/Copenhagen, www.informamariti-meevents.com/event/scandinavian-ship-finance This year’s conference will present participants with a world economic outlook along with prospects and challenges for seaborne trade (container, tanker, dry bulk) as well as views on new ship lending in 2013-2014. Financial issues, such as restricting a shipping company debt or alternative forms of financing, will be tackled, too. The event will also feature a one day workshop entitled “Ensuring Compliance with Competition Law & Anti-Corruption Regulations.”

The 5th Annual Ports Policy Conference, 18 April, UK/London, http://www.waterfrontconferencecompany.com/confer-ences/ports-policyThis annual conference, now in its 5th year, will be a key networking event for the UK’s ports sector, providing an opportunity to become familiar with up-to-date key policy changes and issues for 2013 and beyond. Topics discussed include new European policy and how UK ports will be affected, the role of ports in economic regeneration for Britain, and the role of ports in the energy sector.

TransRussia 2013, 23-26 April 2013, RU/Moscow, www.transrussia.ruThe 18th Moscow International Transport & Logistics Exhibition and Conference will be devoted, among others, to integrating the Russian transport market internationally, addressing tendencies of the cargo car market, attracting investments for infrastructure projects as well as transport and logistics sectors of the Baltic countries. The event’s exhibition will demonstrate the full range of industry solutions – from transport and forwarding services to software and equipment for cargo handling.

BTJ 2/2013 (Mar.-Apr. edition) Report: Baltic ro-ro/ferry market | Focus: Break-bulk & project cargo marketIssue distributed at:

Iberian Cargo Fair, 8-10 May 2013, ES/Granada, www.iberiancargo.es/enWelcome to the first International Transport and Logistics Fair of Andalusia, a strategic place in southern Spain for goods from all around the world. The city of Granada invites all companies from the transport & logistics sector to promote their services and products. The ambition of the Iberian Cargo Fair in Granada is to become a long-lasting international must-attend event.

BTJ calendar of events


– continuedIssue distributed at:

Breakbulk Europe 2013, 14-16 May 2013, BE/Antwerp, www.breakbulkevents.comThe event is one of the most important meeting places for companies involved in the shipping of heavy-lift, project cargo and traditional break-bulk freight. The two-day conference programme will provide an opportunity to meet & develop relationships with the leading specialized carriers, forwarders, ports, terminals and packers.

Nor-Shipping, 4-7 June 2013, NO/Oslo, www.messe.no/en/nor-shippingThe maritime industry goes from cycle to cycle, living with and by uncertainty and the answer to the question “What’s next?” remains a constant challenge. The event’s agenda also includes the next generation shipping and the offshore shipping conferences as well as the Nor-Shipping awards, presented in three categories – energy efficiency, next generation ship and next-gen leader. There will also be 22,500 m2 available for showcasing the latest achievements in marine technologies and services.





Transport Logistics, 4-7 June 2013, DE/Munich, www.transportlogistic.de/enTransport Logistics is one of the biggest European trade fairs for logistics, mobility, IT and supply chain management. Also in 2013, all relevant exhibitors will participate in the event in order to present their latest developments to the highly qualified trade visitors, make contact with decision-makers in all sectors of the logistics industry and secure themselves a valuable know-how advantage.

BTJ 3/2013 (May-June edition) Report: Baltic container market | Focus: ICT for ports & terminalsIssue distributed at:

SIL2013, 18-20 June 2013, ES/Barcelona, www.silbcn.com/enThe 15th edition of SIL2013 will go under the theme ‘SIL = Internacionality’. The event also goes hand-in-hand with the 15th International Logistics and Material Handling Exhibition, the 11th Mediterranean Logistics & Transport Forum as well as with the 2nd Latin American Logistics and Transport Summit. SIL2013 will be a place for networking and showcasing, backed up by a rich programme of conferences.

TOC Container Supply Chain Europe, 25-27 June 2013, NL/Rotterdam, www.tocevents-europe.comThe 38th TOC will take place in the Port of Rotterdam. The European edition acts as a global showcase for the international container port and shipping community to gather on an annual basis to learn, debate and network whilst also discovering the latest cutting edge technology available to modern day ports in the exhibition.

BTJ 4/2013 (July-Aug. edition) Report: European ports review | Focus: European rail freightIssue distributed at:

BALTEXPO 17th International Maritime Exhibition, 3-5 September 2013, PL/Gdańsk, www.baltexpo.com.plBALTEXPO 2013 will bring the possibility for the entire maritime industry sector to present its potential, development plans, aspirations and possibilities of regional cooperation. BALTEXPO 2013 will also further support the evolution of the maritime economy, tackling traditional as well as completely new issues, such as offshore power generation, various platforms (drilling, hotel) and intermodal transport.

BPO Annual Conference 2013, 5-6 September 2013, LT/Klaipėda, www.bpoports.comBaltic Ports Organization invites all executives interested in improving the competitiveness of maritime transport in the region, increasing the efficiency of ports & terminals, developing infrastructure and value-added services, as well as extending both ashore and hinterland connections to its annual conference.

Seatrade Europe Cruise & River Cruise Convention, 24-26 September 2013, DE/Hamburg, www.seatrade-europe.comThe Seatrade Convention will bring together senior buyers and planners from Europe’s ocean and river cruise lines with suppliers from all sectors of these industries. The biannual event will also facilitate business interaction between all participants, incorporating high-level conference sessions, a showcase exhibition and workshops alongside a packed social programme.

TRAKO, 24-27 September 2013, PL/Gdańsk, www.mtgsa.com.plThe jubilee 10th edition of the exhibition and conference TRAKO moves to the new AMBEREXPO site, where it will gather all people connected with the railway business – train and tram manufacturers, logisticians as well as product engineers. The event will be packed with seminars, debates and presentations. Additionally, the “World of Small Railway” modelling exhibition will showcase the rail sector from a completely different perspective.

GreenPort Congress, 5-8 November 2013, NL/Rotterdam, www.europort.nl/enThe core themes of the 2013 edition will be cost-efficiency, sustainability and human capital. Europort’s agenda will focus on topics like upgrading ships, limitation of emission and fuel consumption, use of LNG, safety concepts and much more. Europort will also host the Advanced Technology, Mare Forum as well as Ballast Water conferences.

BTJ 5/2013 (Sep.-Oct. edition) Report: Baltic oil market | Focus: LNGIssue distributed at:

Europort 2013, 5-8 November 2013, NL/Rotterdam, www.europort.nl/enThe core themes of the 2013 edition will be cost-efficiency, sustainability and human capital. Europort’s agenda will focus on topics like upgrading ships, limitation of emission and fuel consumption, use of LNG, safety concepts and much more. Europort will also host the Advanced Technology, Mare Forum as well as Ballast Water conferences.

Trans Poland, 26-29 November 2013, PL/Warsaw, www.transport.lentewenc.com/homeThe exhibition will be devoted to showcasing the latest achievements in transport and infrastructure technologies, helping companies from the sea, road, air, intermodal, freight forwarding and storing sectors to boost their performance. The Trans Poland International Trade Fair will also present up-to-date transport and transhipment equipment as well as ICT, monitoring and navigational tools.


Market SMS extended

The Port of Gdynia: 676,349 TEU handled in 2012 (+9.7% yoy)

The Polish port in Gdynia ended the year 2012 with a slight decrease (-0.6% year-on-year) in total freight turnover which amounted to 15.81 mln tn. At the same time, Stena Line’s Gdynia-Karlskrona ferry connection saw a year-on-year increase by 8.2% to 470 thou. passengers.

The Port of Gdynia’s volumes

2012 YoyGeneral cargo 9.92 mln tn +3.7%

Coal and coke 2.05 mln tn +46.5%

Other bulk 1.79 mln tn -33.8%

Grain 1.78 mln tn +11.3%

Oil and oil products 0.21 mln tn -64%

Wood 0.05 mln tn +11.7%

Total 15.81 mln tn -0.6%Container trafficBoxes 676,349 TEU +9.7%

Rosterminalugol: 13.77 mln tn of coal handled in 2012 (+26.3% yoy)

Ust-Luga’s coal terminal, operated by Rosterminalugol, has exceeded its annual plan by 11% – according to the company’s press centre. Last year the biggest volume of coal was handled in July when 24 bulk carriers visited the terminal and handled 1.42 mln tn. In 2011, coal shipments across Rosterminalugol’s terminal in the Port of Ust-Luga totalled 10.9 mln tn (+45.3% in comparison to 2010). The coal terminal has two berths each 540 m long and offers 14 m of depth for vessels up to 240 m in length and 32.2 m in width.

The Port of Tallinn: 227,809 TEU handled in 2012 (+15.2% yoy)

Total cargo traffic in 2012 in the Port of Tallinn marked a significant decrease by 19.2% year-on-year to 29.48 mln tn. Out of the total volume, outbound freight turnover accounted for 21.04 mln tn (-19.8% yoy), inbound made 8.2 mln tn (-17.3%) and only domestic traffic reported a growth – by 39.6% to 168 thou. tn. Passenger traffic rose by 4.3% to 8.84 mln people.

The Port of Ystad: 1.79 mln people in pax traffic in 2012 (+2.9% yoy)

In 2012, the Swedish port in Ystad set a new re-cord for its pax traffic when precisely 1,792,189 people walked and drove through the port’s ferry terminals. Both ferry destinations, to Po-land and Denmark, marked a rise. On the other hand, Ystad’s cargo turnover marked a decrease by 2.4% to 2,944,305 tonnes.

The Port of Ystad’s volumes

2012 YoyOverall performanceFreight 2,944,305 tn -2.4%Rail wagons 13,529 units -2.5%Trucks & trailers 180,933 units -3%Passengers 1,792,189 +2.9%Pax cars 484,607 +3.4%Busses 2,665 -2.6%Traffic with PolandFreight 2,717,330 tn -1.3%Rail wagons 13,529 units -2.5%Trucks & trailers 172,011 units -2.9%Passengers 481,905 +0.2%Pax cars 192,361 +3.3%Busses 1,185 -15.2%Traffic with DenmarkFreight 100,134 tn -9.5%Trucks & trailers 8,922 units -7.2%Passengers 1,310,284 +3.9%Pax cars 292,246 +3.4%Busses 1,480 +10.7%

The Port of Gothenburg:900,000 TEU handled in 2012 (+1.5% yoy)

In 2012, the overall turnover at the Port of Goth-enburg totalled 42 mln tn – a year-on-year rise by 1.2%. Boxes recorded a new all-time high. Ac-cording to Gothenburg’s authorities, three distinct patterns emerged at the port during 2012 – a rise in trade with other continents (via Gothenburg’s oceanic box services) coupled with a fall in Euro-pean trade utilizing short sea services; an increase in exports (+3% yoy) and a decrease in imports (-5%) as well as growth in freight volumes from the Swedish east coast passing through the Port of Gothenburg. The largest decrease, i.e. in handlings of new cars, can be attributed largely to the fall in vehicle production at Volvo’s Torslanda plant.

The Port of Gothenburg’s volumes

2012 YoyLiquids 22.2 mln tn +9%

General cargo 19.8 mln tn -6.2%

Total 42 mln tn +1.2%Container traffic

Boxes – total 900,000 TEU +1.5%

Boxes by rail 411,000 TEU +10%

Ro-ro traffic

Cargo units 534,000 -4.5%

Cars 163,000 -31%

Ferry & cruise traffic

Passengers 1,674,000 -1.5%

The Port of Kaliningrad: 360,000 TEU handled in 2012 (+14.6% yoy)

According to the port authority, 80% of boxes were destined for the local automotive industry and approx. 10% was in transit with mainland Russia. While container traffic is on the rise, the overall turnover in the Russian Port of Kaliningrad dropped by 7.5% from last year to 12.4 mln tn.

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Kombiverkehr: 927,200 truckloads carried by rail in 2012 (-4.7% yoy)

In 2012, the company’s international consignments totalled 707,500 truckloads (containers, swap bodies, semi-trailers) and dropped by 5% year-on-year. Kom-biverkehr’s domestic transport in Germany also noted a fall in 2012 – by 3.7% to 219,700 consignments. According to Robert Breuhahn, Managing Director of Frankfurt-based Kombiverkehr, the lower results than in 2012 were caused by “The state of the economy, particularly in the second half of the year. This was exacer-bated for a while by extensive closures in Alpine transit, both the planned closures on the Brenner Pass and the unplanned ones in Switzerland.” The standstills had a considerable impact on consignment volumes in 2012 as services across the Alps via Austria and Switzerland are the busiest for Kombiverkehr in terms of volume.

The Port of Kiel: 1.9 mln people in ferry&cruise traffic in 2012 (+2.2% yoy)

The German Baltic port handled 6.3 mln tn marking a slight increase by 0.3% yoy. Ferry traf-fic accounted for nearly 80% of the cargo turno-ver at the port. The largest portion of cargo, over 3.15 mln tn, was handled at the Ostuferhafen terminal (from where DFDS Seaways offers two ro-pax services and one pure ro-ro service) which accounted for an increase by 10% yoy. Also, rail cargo carriages throughout Kiel re-ported a growth (+6% yoy) and for the first time more than 20,000 consignments were loaded or unloaded in intermodal rail cargo transport via Kiel in 2012. Almost 350,000 cruise passen-gers embarked or disembarked in Kiel, among them for the first time more than 50,000 transit passengers taking part in land excursions.

The Port of Rotterdam:11.9 mln TEU handled in 2012 (+0.2% yoy)

Europe’s largest port also set a new record by handling altogether 442 mln tn of cargo in 2012 (+1.7% year-on-year rise).

The Port of Rotterdam’s volumes [mln tn]

2012 YoyTurnover of liquids

Crude oil 98.0 +5.6%

Mineral oil products 82.3 +12.1%

Other liquid bulk 32.94 +3.9%

LNG 0.56 -1.6%

Total liquids 213.79 +7.7%Turnover of general cargo

Containers 125.54 +1.6%

Ro-ro cargo 17.91 +2.6%

Other general cargo 5.92 -23%

Total general 149.37 +0.5%Turnover of dry bulk

Iron ore and scrap 33.05 -11.7%

Coal 25.67 -3.9%

Other dry bulk 12.15 -8.6%

Agribulk 8.1 -17.9%

Total dry bulk 78.97 -9.6%

The Port of Ventspils: 30.35 mln tn handled in 2012 (+6.7% yoy)

Liquids cut out the biggest share of cargo, amounting to 16.76 mln tn and marking an 11.8% rise year-on-year. Out of the total figure for liquid cargo, petrochemicals accounted for 16.01 mln tn (+11.3%), while oil handlings increased by 28% to 48.9 thou. tn. Dry bulk with 11.16 mln tn came in second and reported a growth by 1.9%. In this category, the Latvian Port of Ventspils han-dled 7.87 mln tn of coal (+18.9%), 1.75 mln tn of mineral fertilizers (-37.8%) as well as 369.9 thou. tn of grain (+61.6%). The last major category, general cargo, marked a decrease by 3.4% to 2.43 mln tn. Ro-ro freight slightly increased by 0.6% to 1.9 mln tn, but both the turnover of timber (464.7 thou. tn) and metal & scrap (1.6 thou. tn) went down – by 2.9% and by 98.2%, respectively.

Hupac Intermodal: 646,214 road shipments by rail in 2012 (-10.7% yoy)

According to the company, the decrease is caused by the weaker economic environment in Europe (especially in Italy), lowering the overall demand. Disruptions on the Gotthard Railway also negatively contributed to the final figure. This transalpine rail route was closed to all traf-fic for a total of about 40 days as a result of fall-ing rocks near Gurtnellen in March, June and November of last year. Although traffic was re-routed via Lötschberg/Simplon, these events alone led to a 6% loss in volume for 2012. Mean-while, the Lötschberg/Simplon connection itself caused problems due to construction works.

The Port of Darłowo: 190.15 thou. tn handled in 2012 (+164.1% yoy)

Altogether 113 freight ships called in 2011 at the Polish port in Darłowo, bringing 190.15 thou. tn of goods, chiefly dry bulk. The port, situated in the middle between the Ports of Gdańsk & Gdynia and Szczecin-Świnoujście marks growing volumes year-on-year. In 2010, only 29 cargo ships called at the port and 44 thou. tn were handled. A year later, 50 vessels called and 72 thou. tn of freight passed via the port. Darłowo mostly handles aggregate which is neces-sary for wind farm foundations as well as for service roads (in the local region dozens of wind turbines are set up, driving the de-mand for aggregate). The port also handles lime, dolomite, wheat and wood.

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What’s new?

PLC’s first customers

A direct and fixed-day weekly ‘Poland Express ser-vice’ (PEX) set off on 21st of January. APL operates the 1,008 TEU vessel Akacia on the rotation Bremerhaven (EUROGATE CT Bremerhaven)-Hamburg (HHLA CT Altenwerder)-Gdynia (Baltic Container Terminal Gdynia and Gdynia Container Terminal).

The Polish company has moved its ro-pax Baltivia from the Gdańsk-Nynäshamn route to the Świnoujście-Ystad rotation. From now on, the Gdańsk-Nynäshamn link will be served by one ro-pax, Scandinavia. The Świnoujście-Ystad connection will now have two sailings per day, operated by the aforementioned Baltivia as well as Wawel ro-paxes. The new routing will be valid till 2014. Polferries has denied rumours about closing its Gdańsk-Nynäshamn route.

Maersk Line has reached its 2020 carbon dioxide targetThe world’s largest shipping company has reduced its CO2 emissions by 25% from its benchmark 2007 lev-els. Now Maersk Line plans to reduce its CO2 footprint by 40% by 2020. The company’s carbon dioxide emis-sions are measured in accordance with the methodol-ogy developed by the Clean Cargo Working Group (grams of CO2 per container carried one kilometre). The data are independently verified by Lloyd’s Register.

DB Schenker Rail Poland and ČD Cargo have launched the Moravia train which connects terminals in Sławęcice (Poland) and Ostrava (the Czech Republic). The train runs three times per week and is chiefly designed to serve the chemical and steel in-dustries in southern Poland and northern Czech Republic. Mora-via is an effect of joining DB Schenker’s Silesia train with ČD Cargo’s carriages which have been serving the region of Silesia.

Polferries changes its sailing frequency

An agreement has been signed between Transport & Logistics Complex (the owner of Yug-2), the Com-mercial Seaport of Ust-Luga and the authorities of the Leningrad region. Under the new conditions parties investing in the terminal will receive tax exemptions for their actual investment payback and for two years after the completion of their projects. Additionally, the prop-erty tax rate for the companies will be equal to zero, coupled with lowering the profit tax rate from 18% to 13.5%. The Yug-2 multipurpose terminal, located in the Port of Ust-Luga, has been operating since 2008 and by 2018 its owner plans to reach a yearly handling capac-ity of 800,000 tonnes of freight, 350,000 of automobiles, 240,000 TEU of containers and 25,000 of cargo units.

Tax exemptions for Yug-2

Kuehne + Nagel and Terra-mar are the first two companies to lease warehouse space at Good-man’s Pomeranian Logistics Cen-tre (PLC). K + N has signed a lease for 3,870 m2 and Terramar 3,970 m2 at the first 14,000 m2 ware-house, located adjacent to the Deepwater Container Terminal Gdańsk in the Port of Gdańsk as well as in close vicinity to Poland’s A1 highway and to Gdańsk’s airport. Completion of the first 14,000 m2 warehouse is sched-uled for the end of 2013’s first quarter (when done the whole complex should have 500,000 m2).

APL’s new Germany-Poland feeder service

Two Swedish ports, Halmstad and Varberg, have decided to join forces; from the beginning of 2013 they form a new en-tity – the Port of Halland. The new company is mutually owned 50/50 by the municipalities of Halmstad and Varberg. The Port of Halland is headquartered in Halmstad and its board is also split fifty-fifty between the two local authorities. Both parts of the new entity specialize in handling forest products, but also serve the ro-ro & ferry (Varberg) as well as container markets.

New port in the BSR – Halland

Ruscon (a subsidiary of Global Container Ser-vice) has launched a block train service for General Motors (GM) Korea from the Ust-Luga Container Terminal (ULCT). Regular trains run over 1,100 km to Nizhniy Novgorod (400 km east of Moscow) serving the needs of GM Korea which in February 2011 signed a contract with the Russian motor manufacturer GAZ to assemble GM’s Chevrolet Aveo subcompact city car. The production set off in December 2012 and GM/GAZ plans to assemble approx. 32,000 per year. Earlier on, Ruscon loaded two pilot trains at ULCT in the beginning of last December, transporting CKD parts that were shipped by GM Korea. In total 118 containers were delivered to the new assembly plant in Nizhniy Novgorod – 54 x 40-foot boxes and 2 x 20 TEU containers were carried on the first train, while the second transported 60 x FEU and 2 x 20 TEU. The block train operator estimates to have around 800 x FEU per month running on the Ust-Luga-Nizhniy Novgorod connection. In addition to railway transportation, the company is arranging port and customs transit for-malities for this project while ocean transportation to ULCT is arranged by Seago Line. Ruscon/GCS is also offering space on its trains to third parties, including carriers and shippers that route cargo via Ust-Luga.

Ust-Luga-Nizhniy Novgorod block train

The company has hung up passenger traffic on its Gdynia-Helsinki route from 11th of January till the end of March, replacing it with pure ro-ro traffic. According to Finnlines, the change is caused by reshufflings done across the company’s network as well as the necessity to direct some vessels for maintenance works in ship-yards. Now, Gdynia-Helsinki’s pure ro-ro connection will be served by the 157 m long 13,773 dwt vessel Baltica, having 2,170 lane metres.

Finnlines suspends Gdynia-Helsinki pax traffic

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Altogether over 35,000 people took international train no. 23/24, going from Russia’s capital via Belarus and Poland to Berlin and then to Paris. Having 3,177 km of length, the route (which set off on the 12th of December, 2011) is the second-longest trans-European service, second only to the Moscow-Nice link. Despite the large distance the entire trip takes passengers just one night. After departing from Mos-cow’s Belarus Station in the morning, the train arrives at Gare de l’Est (East Station) in the French capital in the evening of the next day. Dur-ing winter, the Moscow-Berlin-Paris train runs three times per week, while during summer it has two addi-tional runs.

From the beginning of January Tallinn is the first capital in the EU to provide its citizens with free public transport. Citizens of Tallinn must only make a one-time purchase (EUR 2) of the so-called ‘green card’ which entitles to use public transportation freely across Estonia’s capital. People from outside Tallinn can also buy the ‘green card’. The project cost EUR 12 mln and was financed by the authorities of Tallinn.

Free public transport in Tallinn

The construction firm Strabag has withdrawn its appellation thereby allowing the contracted party, Per Aarsleff A/S, to start the works at Stockholm’s terminal in Spring 2013. In November, Strabag lodged an official note of appeal because it believed that two errors were made in the procedural formalities (the company came in sec-ond in the procurement process and was not awarded the contract). Now the firm has dropped its appellation, thus giving a green light to rebuild Värtahamnen. The modernization plan foresees extending the pier further into the bay, as City of Stockholm needs some of the land, which is currently part of the port, for commercial and residential purposes. The new Värtahamnen should be commissioned in 2016.

Green light for the new Värtahamnen

PCC Intermodal has signed a EUR 6.7 mln deal with the Silesian Logistics Centre to lease out the container terminal in Gliwice for an-other 30 years. PCC Intermodal has been operating the Gliwice con-tainer terminal since August 2011 and plans to further develop the facil-ity by extending its area to 50,000 m2, increasing the box capacity to 2,900 TEU annually, placing a depot for empty containers (350 TEU) and for 40 UPS units, establishing four rail tracks (each 600 m long) as well as putting into operation three reach stackers and two gantry cranes.

HHLA will get EUR 2.5 mln from the Centre for the EU Trans-port Projects for the enhancement of the container terminal in Dąbrowa Górnicza (southern Poland). The whole modernization project sums up to EUR 8.41 mln and foresees upgrading the rail infrastructure, purchasing two reach stackers as well as building a new workshop and an administration-social office. Upgrading works should be completed by the start of April 2014. The designated ca-pacity (23,660 TEU per year) should be reached one year later – in 2015. The Container Terminal Dąbrowa Górnicza is operated by the company Polzug Intermodal which is a subsidiary of HHLA.

Det Norske Veritas and Germanischer Lloyd have signed a merger agree-ment under which a new entity – the DNV GL Group – will emerge. The DNV Foundation will hold 63.5% while GL’s owner Mayfair SE will have the rest of the Group’s shares. DNV GL Group will be organized as a Norwegian limited company with headquarters in Høvik, Norway. Henrik O. Madsen, the present CEO of DNV’s Group, will also be head of the combined new company. The gas & oil business unit will also be located in Norway, whereas the maritime depart-ment will be headquartered in Hamburg, energy in Arnhem and business assur-ance in Milan. The transaction is subject to approval by competition authorities.

First year of the Moscow-Berlin-Paris pax train

Hamburg’s Ministry of Economic Affairs, the port’s authority and the port industry, will offer a set of discounts for large vessels in 2013. The decision is a result of the delay concerning deepening the Elbe. The port rebates foresee discounts for exceptionally large vessels, a tranship-ment rebate, discounts for environmentally-friendly ships and a postponement of the annual adjustment. The offer is supported by other measures, such as enhanced pilotage and vessels’ traffic adjustment focused on large vessels.

Hamburg reduces port calling costs

It will be Siemens’ largest order of Vectron class locomotives so far, ex-tended with an option for 13 more. The version for DB Schenker Rail Poland was designed for operation on the Polish DC network and was fitted with corresponding train protection equipment. During its certification in Poland, the Vectron underwent almost a year of trials with various operators on the Polish network. Siemens received certification for the vehicles in September 2012. The Vectron family consists of single and multi-system locomotives for the European AC/DC networks for fast passenger services as well as interoper-able cross-border freight services. These versions allow for operation on four different line voltage systems and in various performance classes.

DB Schenker Rail Poland’s 23 new electric locomotives

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On the roads

In the multimodal mood

Back in December 2012, nothing indicated a change in my atti-tude towards life. Even this year’s first week passed by, bringing no surprises. i didn’t plan any intense activities, either. But then came the day after an Epiphany and it seems that has pretty

much changed everything. Don’t worry, i won’t write any mawkish tales like “My dear diary…”, yet i want to emphasize that if you have plans (from the sort of excellent, perfect and unique), things tend to go in the opposite direction at the very moment of the plan’s get-go.

For instance, take a closer look at the career of the word “modal” (in various connections and most often with prefixes) in the world of transport. intermodality in transport means at least two modes of car-rying a customer’s goods from one point of destination to another as well as one service provider (in-between stops are granted as you natu-rally must tranship freight from one mode to the second, third, etc.); sometimes the definition is supplemented by the necessity of one bill of lading. And that’s all folks! However, in some cases, it’s far from being all, especially when serious institutions and official bodies are involved.

Here we have Poland. According to official statistics the share of intermodal among all transport modes totals something be-tween 3-5%. The target is to reach 10% within the next 10 to 15 years. The just mentioned figures are not even close to the place where road and rail currently are. On the other hand, we have (ac-cording to some official reports) 23 intermodal inland terminals which are in full service offering transhipment and cross-dock services round the clock. Several new openings are planned in the near future. in my opinion, all authors of these documents are right and wrong at the same time. They all concentrate on defini-tions, whereas life goes on without the necessity of knowing how much intermodal is really present in “intermodal” services.

How much intermodal is there in intermodal?

The truth is that intermodal, multimodal, bimodal, trimodal and even combi transports span over the same core service and both service providers and clients experience no problems with communication. The customer wants the goods transported from place A to B, paying for it as little as possible without damaging the commodities, which will arrive at the final destination at their designated time (more or less). There’s really no need to construct a philosophy for something which does not require it. Nothing will change during the upcoming decades either. Nonetheless, we will see names such as ‘inter-space-shuttle’ or ‘multi-galactic-box-cruiser’ meant to work charms on the reality (and on the wallets of noobie clients). in contrast, the ‘no havoc, on budget and on time’ rule will remain the same for ages.

There is one very important and significant moment when people from different companies across all countries under the umbrella of the EU hold their breath and start to prove that they were, are and will be, intermodal – forever! And you are right – it’s the day when grants from Brussels are being delivered to bank accounts between the East Atlantic and Bug River in order to make transport modes better and more multi-purpose. The day after everybody returns to his or her everyday business and carries goods – be it by sea, on river barges, on trucks or in railway wagons; with loading and reloading in land and seaport terminals.

i’m not Monsieur Jourdain and i know i have been speaking prose all my life but sometimes, during such days like in January, i ponder whether or not we are too inter-organized on a multi-scale. i’m not against arranging our lives according to given standards but these norms should be as close to real life as possible. Otherwise such regulations make everyday duties more fictitious than anybody would even try to make them on purpose.

Last week i really had a very, very busy day. it all started in the early morning with two meetings in Gdynia, then i had to move to Sopot for awhile. Next stop was in Gdańsk-Wrzeszcz and the last one in Gdansk’s downtown. When moving, i chiefly use trolley buses, light railway and taxis. Between meetings i use my smartphone and tablet to keep things going. in the evening, i realized i was fully multimodal: three different modes of transport, one cargo unit (me), the same bill of lading (metro-politan ticket) and one service provider, i.e. my customer. So, “yes – we can” if we stick to certain rules, even if we aren’t aware of them.

On behalf of the organizers of Transport Week 2013 in Gdańsk, March 5-7th, i have the pleasure to invite all readers to take part in the ‘intermodal Day’ on March 7th. We will have the possibility to discuss how intermodal we really are. See you all there! �

Krzysztof Urbaś

On the roads


Economy

BSR countries’ innovation level

When looking at the history of humankind, innovation fits as a pretty good flywheel of development. Faced with a serious obstacle, people tend to find various solu-tions – from improving existing technologies to invent-ing something completely new. In fact, it’s an evolution-ary process and, as such, favours the winners. The Baltic Sea region has its own leaders and those who lag behind.

An idea that tips the scales

The Baltic Sea region is diverse in terms of politics, geography, de-mography as well as economics.1

About 57.3 mln people live there, out of which 27.7 mln qualifies as labour force (data for 2011). in 2010, the BSR started to recover its health after the 2009 breakdown (when 740 thou. people lost their jobs), and generated EUR 1,300 bln of gross domestic product (approx. 11% of the whole EU’s GDP). Out of the total number, approx. 62% was produced by Nordic countries; the Baltic part of Ger-many as well as the Kaliningrad and Lenin-grad Oblasts – adding each 13%, the three Baltic States – 6.5%, and finally Poland’s northern voivodeships – 5%.

Leaders and latecomers“innovation” is defined as a concept

which creates a new value for a company or a country (this may be a product, ser-vice, strategy or plainly sorting out old things in a new and better manner). in-novation is a global nouveau and brings to life a completely new market and thus can be perceived as a result of knowledge,

entrepreneurship, well-thought-out reg-ulations and creativity. An innovative economy, on the other hand, is one which can both produce innovations and make use of them, satisfying the needs of the so-ciety better than previous solutions (post-war Japan is a good example of such an economy, as the country developed from smooth usage of foreign concepts to swift production of their own).

For many years Sweden, Finland and Denmark have been, and still are, at the forefront when it comes to innovations. Bal-tic Germany (as a part of the former com-munist German Democratic Republic) is a runner-up together with Estonia (though Germany as a whole is one of the leaders). Poland is a moderate innovator (at the very bottom of the moderate list to be exact), while Lithuania, Latvia and the two Russian

Tab. 1. BSR states’ GDP expenditure on R&D by sector [% of GDP]1

Business enterprise sector Government sector Higher education sectorRanking2 2005 2010 2005 2010 2005 20101. Sweden 2.59 2.35 0.18 0.17 0.78 0.902. Denmark 1.68 2.08 0.16 0.06 0.60 0.903. Germany 1.74 1.90 0.35 0.41 0.41 0.514. Finland 2.46 2.69 0.33 0.36 0.66 0.795. Estonia 0.42 0.81 0.11 0.17 0.39 0.626. Poland 0.18 0.20 0.21 0.26 0.18 0.277. Latvia 0.23 0.22 0.11 0.14 0.23 0.248. Lithuania 0.15 0.23 0.19 0.14 0.23 0.24

1 Data unavailable for Russia2 Place in ranking according to the European Innovation Scoreboard 2011

�Innovation leaders �Innovation followers �Moderate innovators �Modest innovators

Economy

Economy


1 In this article BSR refers to Denmark, Sweden, Fin-land, northern Germany (Mecklenburg-Vorpommern, Schleswig-Holstein and Hamburg), northern Poland, Lithuania, Latvia, Estonia and two Russian Oblasts – Kaliningrad and Leningrad.

BTJ_184 x 118 25.02.11 19:21 Seite 1

Baltic regions are classified as modest inno-vators (Tab. 1). According to the European Innovation Scoreboard 2011, the top four places in the EU-27 are occupied by BSR countries – Sweden is the best, followed by Denmark, Germany and Finland. in fact, these countries are the only ones in the community which can take pride in calling themselves “innovation leaders”.

Such results stem from a different level of investment allocated into research & development (R&D). For example, public funding (as a percentage of GDP) varies throughout the BSR. in Latvia as little as 0.38% of GDP goes into R&D; the same for Poland and Lithuania (0.53% and 0.56%, respectively), whereas in Denmark – 0.96%, Sweden – 1.07% and in Finland – 1.1%. The gap between high and low R&D states becomes wider, if we look at private funds assigned to create innovations. companies in Poland spend 0.2% of the country’s GDP on research & development, while German firms – 1.9%, Danish – 2.08%, Swedish and Finnish – 2.35% and 2.69%. The average for the entire EU totals 1.23%.

The level of a country’s innovative-ness can also be measured through the share of small & medium-sized enterprises which introduce their own breakthrough

concepts. Poland scores below 14%, while Sweden (37%), Finland (38.6%), Denmark (40.8%) and above all Germany (more than 46%) again go ahead not only in the BSR, but also in the European community (aver-age of 30.3%). The same line of demarcation can be observed when it comes to patents or industrial designs per one million citizens, and so forth.

Basing on the data collected by the Bal-tic Sea Region Observatory (under the aus-pices of Gdynia Maritime University), it seems that not much has changed during the past 20 years. Apart from Estonia, there are still many shortcomings across former Eastern Bloc countries in areas of innova-tion, developing an information society as well as regional and international coopera-tion of clusters.

Nowadays, when Europe is struggling to retain its worldwide importance, “innova-tion” is on the lips of almost everybody. All you need to do in such a situation is to say “check” and suddenly there’s nothing but silence. For some deeds do all the talking, while others are just like the naked king. �

Prof. Marek GrzybowskiGdynia Maritime University

and the Baltic Sea Region Observatory

Economy


Economy

BSR countries in the 2012 Legatum Prosperity Index™

The Legatum Institute, a London-based independent non-par-tisan public policy organisation advancing ideas and policies in support of free and prosperous societies around the world, has released its Prosperity Index™ for the sixth time. This year’s re-sults uphold the Ilomantsi-Świnoujście line across the Baltic Sea, dividing the BSR into west high- and east mid-prosperity states.

Divided into two

Legatum’s index stems from a notion expressed by late Senator Robert F. Kennedy who said that, “the gross national product… measures every-

thing in short, except that which makes life worthwhile.” identifying GDP with prosper-ity would obscure the overall picture, as there are other valuable aspects of life to which money may contribute but cannot displace it. Additionally, choosing GDP as the sole (or the most important) measurement could fur-ther misshape the final ranking by elevating countries with a high gross domestic prod-uct (like the Persian Gulf oil states or china) which, on the other hand, have serious short-comings in the fields of personal freedom or safety & security.

That’s why the institute’s index defines prosperity as a combination of eight factors – Economy, Entrepreneurship & Opportunity, Governance, Education, Health, Safety & Secu-rity, Personal Freedom and last, but not least,

Social capital. The final score, therefore, is a result of partial outcomes in these eight sub-in-dices. in the end, it paints a comprehensible im-age of a given country or the region as a whole, since the index covers 142 countries – 96% of the world’s population and 99% of global GDP.

Nordic countries – the Promised Land?Surely a bookie wouldn’t pay us a lot of

money if we placed a bet on Norway. The country has been ranked 1st since 2009 (and also in 2007, equal with Sweden). in 2012, Norway also ranked first in the Social capi-tal sub-index and 2nd in Economy and Safety & Security. The same goes for Denmark, in 2nd place since 2009 (last year’s winner of the Entrepreneurship & Opportunity rating). Sweden closed the podium in 2012 and ap-parently Swedes are on the go, advancing every year (7th-6th-5th in 2009-11). Finland ranked 7th for the second time in a row but is behind results from previous years (4th and

3rd in 2009 and 2010, respectively). The last of the Nordic countries, iceland, is rapidly restoring its position after hard times of the financial crisis (61st place in the Economy sub-index). Bold actions taken to alleviate the island nation are paying off, while the seven other sub-indices never fall below the Top 20 and iceland took a remarkable 1st

place in terms of Safety & Security. All in all, iceland came in 15th place (12th in 2009-11).

Three Baltic Sea region countries con-quered the Top 10 Prosperity index™, but what about the rest? Germany took a very good 14th place, scoring exceptionally well in Health (5th) and Economy (6th). Five other BSR states are located on the right of the mentioned ilomantsi-Świnoujście line and were assigned by the Legatum institute as mid-prosperous.

Poland was overtaken by Luxembourg, Malta and cyprus (three new entrants in the 2012 edition) as well as by Uruguay and is now two places behind the Top 30 high ranking

Economy

Economy


countries. Poland scores best in the Safety & Security sub-index (25th) but falls behind in Social capital (46th) and in Economy (52nd). The last figure is worth a second look, especial-ly in the context of the past four years. in 2012, Poland’s Economy index dropped below the 2012 average, despite the country’s constant GDP improvement (remember the Polish government advertising the state as Europe’s

lonely ‘green island’ of growth in times of eco-nomic turmoil?). Apparently others, most ob-viously the four Asian Tigers (Vietnam, Thai-land, indonesia and Malaysia), are developing faster. interestingly, however, is that Poland outruns the G8’s italy which reports the larg-est decrease in the whole of Europe. On the other hand, Poland’s southern neighbour, the czech Republic, is in a 28th position.

Estonia is in 35th place and ranks very well in terms of Governance (25th) and Social capi-tal (30th), but in contrast scores poorly (mid-low) in Personal Freedom (74th). Nonetheless, the Legatum institute underlines the very good job done by Estonians in the field of Ed-ucation as well as of Safety & Security in com-parison to italy, Belgium, ireland and Spain – seemingly much more developed countries.

Lithuania ranks 43rd and has advanced by one position since 2011 but is still three steps behind its result from 2009. citizens of Lith-uania can take pride in their Education (18th) but alike Estonia, the country’s final score is dragged down by mid-low scores in Econ-omy (82nd) and in Personal Freedom (93rd), while other sub-indices vary from 34 to 49.

The last of the Baltic States, Latvia, climbed four positions to a 47th place, but only scored well in Education (28th). The state’s ranks in Economy (80th), Social capital (86th) and especially in Personal Freedom (112th – only one place ahead of countries with the poorest ratings!) are far behind the results of other BSR countries. it needs to be remem-bered, though, that all three Baltic States were hit hard by the economic crisis which appears to have pretty much injured its citizens.

And finally – Russia. it’s quite interesting that the country, whose ports win our rankings in terms of annual throughput year by year, oc-cupies the last position in the BSR when other issues are at stake (just recall 2011 WWF’s Bal-tic Sea Scorecard in BTJ 5/2011 where Russia was at the very bottom). in the newest Prosper-ity index™ Russia went down by seven places (to 66th) and is just six steps in front of middle-low ranking countries. Not surprisingly Educa-tion is high on the agenda (27th), still the results for Governance (118th) and Personal Freedom

(119th) are somewhat closer to war-ploughed countries of middle Africa! – and even despite Gérard Depardieu’s statement about Russia being a great democracy… The Russian Fed-eration also scored poorly in Safety & Security (97th), while other sub-indices are in bottom parts of upper-mid scores.

It’s all about trustThe Legatum institute strongly underlines

the all-embracing role of the Social capital factor. in short, it measures the level of trust a community has towards institutions and other people, giving a good picture of social cohesion and engagement. The “capital” is ac-cumulated – or devastated as well – through everyday activities. Just imagine a society where medical doctors have to struggle with bureaucracy which undermines the use of their skills; men who work as police offic-ers not to ensure peace and enforce law, but because they can get a very early retirement; “fellow” citizens who are forever mistrustful or plainly boorish; short-sighted politicians disconnected from reality and prone to sweep problems under the carpet; courts making po-litically-steered verdicts, etc. Such atmosphere is like an adverse environment for a plant to grow. Sure, it can rise and even give crops but it will never release its full potential. The level of social capital, therefore, shows how much people trust each other. And trust, subse-quently, is one solid fundament to build on.

Legatum’s Prosperity index™ points out that over 20 years after the fall of the iron cur-tain, the majority of the former Eastern Bloc countries are still struggling to throw away decades of underdevelopment in many aspects (note especially their rather feeble scores in the Social capital sub-index). Only Slovenia and the czech Republic caught the Top 30 in 2012. The victorious Nordic countries are a clear ex-ample that an economy won’t solve everything, but everything else can boost an economy. A notion quite worthy to remember in the midst of the economic slump. Now, how was it? Oh, yes – it’s the prosperity, stupid! �

Przemysław Myszka

Tab. 1. BSR’s countries performance in the 2012 Legatum Prosperity Index™

Economy Entrepreneurship & Opportunity Governance Education Health Safety &

SecurityPersonal Freedom

Social Capital

Overall rank

Denmark 19 1 3 16 16 8 7 2 2/142Sweden 5 2 4 12 14 6 5 9 3/142

Germany 6 18 16 15 5 21 12 15 14/142

Poland 52 38 38 38 34 25 37 46 32/142Estonia 60 32 25 31 39 39 74 30 35/142Lithuania 82 42 43 18 46 34 93 49 43/142Latvia 80 36 44 28 50 50 112 86 47/142Russia 62 50 118 27 48 97 119 71 66/142


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Stena Line grabs Scandlines’ networkin mid-2012 Stena Line announced a huge change in the Baltic ro-ro market, namely the acquisition of five routes from the Ger-man-Danish operator Scandlines. The deal was formally fixed in October 2012 and included three long Baltic routes between Travemünde-Ventspils & Liepāja and Ventspils-Nynäshamn, as well as two short routes between Trelleborg and Sassnitz &

Rostock (which run in joint-ownership under the Scandlines Hansa brand). The transaction concerned about 300 employees in Germany and the Baltic States. The staff, employed by Scandlines in Germany, Lithuania, Denmark and Latvia and who work on the specified routes, was offered new positions with Stena Line. As a result of the acquisition Stena Line strengthen the Trelleborg routes to and from the continent along with taking some important strategic steps of expansion into the growing markets of Baltics, Russia and Eastern Europe. Stena Line now offers one of the biggest ro-pax networks in not only the the Baltic Sea region but across Northen Europe. Stena Line continues to be joint owner of the short route on Helsingborg – Helsingør.

A new North Sea hub for the BalticSeptember 2012 witnessed the opening of a new deep-sea transhipment port built from scratch in Wilhelmshaven at the German North Sea coast. Short-ly thereafter, EUROGATE container Terminal Wilhelmshaven in JadeW-

eserPort entered the Baltic Sea network as it was included in the Seago Line/Maersk Line routes, thus becoming one more location with a hub function for the BSR. Germany’s only deepwater port and the most eastern deep seaport in the European North Range with a short navigable channel of only 23 NM is open to vessels 24/7,

independent of tide. 50,000 tn of steel, 80,000 m³ of concrete, 500,000 tn of bricks and approx. 40 mln m3 of sand were required for its construc-tion. Having a capacity of 2.7 mln TEU per annum after full completion, the new port is capable of handling fully loaded container ships up to 430 m in length, 58 m width and draughts of 16.5 m. The 1,725 m riverside quay, of which around 1,000 m is currently in operation, allows simultane-ous handling of large container ships and feeder vessels. covering an area of 130 ha, the terminal lies in close proximity to the 160 ha logistics zone with its port-related logistics and industrial operations. The total cost of the investment amounted to EUR 1 bln – the federal states of Lower Saxony and Bremen contributed EUR 650 mln to the infrastructure and the EU-ROGATE Group as the terminal operator raised another EUR 350 mln for the terminal-related suprastructure, crane facilities and other equipment.

Terminals privatized in GothenburgAt the beginning of 2012, the authorities of Gothenburg port succeeded in privatizing its container & ro-ro terminals’ operations. The Skan-dia container Terminal has been handed over to APM Terminals for the next 25 years. During the first five years the company declared

Last year’s most important events for the BSR’s transport sector

2012 highlightsToday, we are witnessing what is called to be the times of austerity. For many the wheel of time is turning towards an uncertain future which, perhaps, will require new solutions or maybe calling to mind old, yet

reliable ways of sorting things out. Nonetheless, we need not only examples to follow, but also people who convince us that we’re heading for a better tomorrow, amidst troubles and doubts.

Maritime

Jacob Koch-NielsenFreight Commercial Manager Stena Line Scandinavia

We have integrated our new routes into the Stena Line set-up and can now offer all our customers one point of contact and full IT solutions for short sea freight services from Ventspils in the East to Belfast in the West, as a single route set-up or in a variety of multiple routes in combina-tion. We are excited about having connected the growing markets of Eastern Europe, Baltics and Russia to our route

network and through our widely spread Freight Sales organization we are close to our customers and all major markets. We are really pleased with the positive feedback we have gotten from the market following the acquisition and integration of the routes.

Marcel EggerManaging Director of EUROGATE Container Terminal Wilhelmshaven

Alongside Bremerhaven and Hamburg, the EUROGATE Container Terminal Wilhelmshaven is our third container port for global ocean traffic on the German North Sea coastline. It is the most Eastern deep-water port within the North Range, and therefore nearest to the Scandinavian countries and the Baltic Sea. Its geographical and nautical position makes this terminal an important hub for ultra-large container vessels >10,000 TEU. Its short approach saves shipping lines time and money, something that is particu-

larly important in times of difficult economic conditions. High productivity levels, thanks to optimized processes, generous area capacities, first-class hinterland connections as well as rapid container deliver-ies (due to early customs clearance directly after the completion of discharging), are some of the advan-tages of our new container terminal. Due to customized train connections offered by EUROGATE and our partners, we are able to deliver containers the quickest way wherever the customer wants them to go. The advantage of a greenfield project like the one at the EUROGATE Container Terminal Wilhelmshaven is that the layout can be designed from the outset to ensure maximum process efficiency. For example, at the western end of the terminal, directly onsite, there is a multi-modal railway with six 765-m-long tracks which allow block trains to be handled. Upon completion, five intermodal traffic cranes will span the tracks. The intermodal terminal is connected to the international railway network via a 16-track marshalling yard. Additionally, the terminal is directly connected to the motorway which ensures quick access to both the German and European truck road networks. EUROGATE strongly believes in the success of its new terminal facility. Our aim for 2013 is to continue marketing and to establish Wilhelmshaven’s position on the global container market. Our next step must be to acquire another customer besides Maersk Line. Our experience has been positive so far. Our staff is motivated. State-of-the-art terminal operation software and IT systems guaranteed the smooth start of operations. Above all, Wilhelmshaven rounds off the EUROGATE portfolio in Bremerhaven and Hamburg.

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GLOBAL MARKETS ON YOUR DOORSTEPWITH OVER 20 VESSEL CALLS A WEEK ANDCONNECTIONS TO MOST OF THE WORLDSLARGEST SHIPPING LINES, TEESPORT CANHELP BRING YOU CLOSER TO THE MAJORHUB PORTS OF EUROPE AND OVER 11STRATEGIC MARKETS.

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to invest nearly EUR 90 mln in the development of the terminal, chiefly in infrastructural improve-ments. Today, APM Terminals Gothenburg is one of the busiest box facilities on the Baltic and the only one which handles two ocean services of Maersk Line in the BSR (‘AE 7’ and ‘AE 10’). APM

Terminals’ offer, chosen out of 13 bids includes, among others, invest-ing in three Super post-Panamax, the world’s largest cranes for loading and unloading container vessels. Other investments include expansion of the rail terminal and 10 new straddle carriers. Danish-owned DFDS and Belgian-owned c.RO Ports have jointly taken over Älvsborg Ro/Ro AB – also for 25 years. DFDS will have a holding of 65% and c.RO Ports 35% in the terminal, which encompasses 463 thou. m2 and has seven berths. Both firms have also decided to invest EUR 7.7 mln in increasing the potential of the terminal by buying new machinery, improving its infrastructure, reinforcing the terminal’s areas as well as installing new and more efficient iT systems. Moreover, the car terminal is now run by the fast growing Swedish logistic company Logent AB.

BPS-2 propels Ust-Luga oil terminalBPS-2 is the second trunk line of the Baltic Pipeline System, constructed and operated by the Russian oil pipeline company Transneft. The system runs from the Unecha junction of the Druzhba pipeline near the Russia-Belarus border to the Ust-Luga terminal via Smolensk, Russia. Ust-Luga was selected as the end point of the pipeline as it offers congestion-free transportation unlike the St. Petersburg port. Moreover, the Gulf of Finland characterized by a short ice-over period can be easily accessed by other major ports situated in northern Europe. After the launch of the 1,170-km long pipeline system to Ust-Luga, the port initiated its new oil terminal, thus significantly raising its potential, as the facility can handle about 15% of Russia’s oil exports. Ust-Luga’s new terminal, operated by Nevskaya Pipeline company (NPc) and currently having two piers of a total of 620 m, plans to export 15 mln tn of crude oil by the end of 2015. NPc invested USD 130 mln

Magnus KårestedtPort of Gothenburg Chief Executive

In 2010, one of the biggest changes ever was initiated at the Port of Gothenburg. A decision was taken that the day-to-day handling of freight would be placed in separate companies and taken over by external operators. This gave the Port of Gothenburg a structure similar to the majority of major ports throughout the world. The most common arrangement is that a publicly-owned Port Authority owns the land and the

infrastructure but allows international port operators, which are experts in running terminals, to deal with the handling of freight. A structure such as this offers numerous advantages. With specialised terminal operators the potential for more efficient freight handling is improved. Göteborgs Hamn AB, as the Port Authority, also acquires a clearer focus on the overall, long-term development of the port. We have chosen operators that share our visions. Their wholehearted investment in the Port of Goth-enburg will benefit both the development of the port and the whole of Swedish trade and industry. With the new terminal operators’ networks and expertise and a willingness to invest, the Port of Goth-enburg will consolidate its role as the major international port in Sweden.

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to build the facility, including USD 7 mln spent on crack prevention. The berths have been operating since March, when the BTS-2 pipeline became fully operational. celebrating its 10th Anniversary, the Port of Ust-Luga acceded a total volume of 46 mln tonnes in 2012 (a year-on-year increase by over 100%) and joined its two Russian neighbours in the top three biggest Baltic ports. Expansion of the port in the past five years has been truly amaz-ing – from a range of 5 mln tonnes in 2008, via 10-12 mln tonnes in years 2009-10 and 20 mln in 2011 up to a once again doubled outcome in 2012.

First intermodal trains by a shipping lineShipping lines entering both port/terminal and overland transport services is nothing new on a global scale, but so far none of the shipping operators in the Baltic Sea has initiated its own open-access, regular intermodal trains. Not until 2012! Maersk Line started two container ser-

vices from Gdańsk to the south of Poland as an intermodal operator (traction provided by two independent carriers). The “older brother” – ‘Maersk Amber Express’ – took off in February and since then has been linking the Deepwater container Terminal Gdańsk with Schave-maker’s terminal in Kąty Wrocławskie. The name refers to the Amber Road – an ancient trade route for the transport of amber, which used to pass through Gdańsk and Wrocław. The second service – ‘Maersk Baltic Express’ – kicked off one month later and connects DcT Gdańsk with Euroterminal Sławków in southern Poland. The 90 TEU capacity trains run twice a week in both directions and the services’ timetables are syn-chronized with the arrivals of the company’s container ships in Gdańsk.

EUR 74 mln from TEN-T grants to the BSR

Last year, as a result of the 2011 annual call, the European commission selected 75 projects aimed at improving transport infrastructure across the EU, which altogether will receive EUR 198.63 mln within the framework of the TEN-T programme. From this sum about EUR 74 mln is directly connected with investments in the Baltic Sea region. The programme aimed at financing the highest priorities of the TEN-T network focuses on: promoting the development of an integrated and multi-modal transport system; studies and preparation of deployment projects contributing to mitigation and adaptation to climate change (GHG emissions); studies and works supporting the reduction of the impact of maritime transport on the environment (air pollutants); accelerating/facilitating the implementation of TEN-T projects; supporting Public-Private Partnerships and innovative financial instruments; sup-porting the long-term implementation of the TEN-T network, in particular development of corridors that enable a coordinated implementation of the network. The projects are man-aged by the TEN-T Executive Agency, cooperating with the project beneficiaries and under the auspices of the Director General for Mobility and Transport of the Ec.

APM-T with the largest FDI in RussiaAPM Terminals, the ports arm of A.P. Møller-Mærsk, acquired a 37.5% shareholding in Global Ports for approx. EUR 670 mln from Transportation investments Holdings Limited (also known as N-Trans) which initially held a 75% stake in the company. By this acquisition APM Terminals becomes an equal controlling partner of one of the biggest operators of container terminals on the Russian market and operator of four terminals in the East Baltic. The investment follows Russia’s accession to the World Trade Organization and represents the largest foreign direct investment in the country’s transportation sector to date. Global Ports

Fig. 1. Number of projects and TEN-T funding in the Baltic Sea region

Wojciech LisieckiSales Manager, Poland and East Central Europe, Maersk Line

It’s a pleasure to see that our intermodal services have been met with a positive response. We at Maersk Line strongly believe in developing an offer for our customers that responds to their needs, and our intermodal offer is certainly part of that concept. We treat it as an extension of our reliable ocean product to our customers who require inland delivery. Our rail products were developed to allow customers to send or receive their cargo

much closer to their warehouse, factory or store without having to organize inland transportation of their own. They can rely on us to take care of the entire transportation of cargo, and not just the shipping part. There is obviously still room for improving intermodal services in Poland. The development of that sector is a natural tendency. We know from customers that they value timely delivery of their cargo and ease of doing business and thus development of our intermodal offer is a step in that direction. We also believe that innovation is crucial and that we can serve our customers best only by constantly improving our services and offering new products and solutions. We are very satisfied that our actions are contributing to the development of the Polish market and that they are perceived as important for the Baltic States region as well. It has always been our aim to facilitate business and support both im-port and export customers. We strongly believe that our established presence in Gdańsk with a reliable weekly direct Asia-Europe service, along with our intermodal expertise, is triggering new opportunities in Poland. Being listed among the most important transportation events in 2012 is not only a great privilege, but also a strong commitment for us.

Siim KallasVice-President of the European Com-mission

The BSR is a highly dynamic region with a lot of potential for key improvements in infrastructure. This is why, between 2007 and 2012, it received EUR 744 mln in EU co-financing under the TEN-T programme going to some 75 different

projects in total. The fact that, in 2012, a number of projects from the region was selected for funding confirms their high priority and quality. In total, the projects receive EUR 58 mln of co-financing. One such initiative is a study looking at Liq-uefied Natural Gas bunker filling infrastructure and involves ports in Denmark, Sweden, Finland, Estonia and Poland. It will contribute to the realisation of the Motorways of the Sea concept – viable and efficient sea-based transport links integrated in the entire transport chain, which are of course well suited to the Baltic Sea countries. Besides the maritime sector, several other important TEN-T Priority Projects are located in the Baltic Sea region: the Nordic Triangle railway/road axis (EUR 202 mln), Rail Baltica (EUR 83 mln), and the Fehmarn Belt (EUR 233 mln). These are examples of large-scale, multi-country initiatives to promote multimodal transport. They will also improve the environmental performance of the entire transport sector and deliver better and more efficient infrastructure to citizens. I am proud of this progress, and pleased to say that the EU will continue to promote further infrastructure development. In November 2012, we launched the 2012 TEN-T Call, with almost EUR 1.6 bln available to transport in a variety of sectors. We expect a large number of proposals, which we will evaluate scrupulously. We look forward to receiving high-quality pro-posals – including from Baltic Sea countries – to make concrete improvements to transport infrastructure and to contribute to better mobility and increased opportunities for growth and economic exchanges as a whole.

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investments Plc. operates Petrolesport and Moby Dik in St. Petersburg, Vostochnaya Stevedoring company in the Port of Vostochny and Multi-Link terminals in Helsinki and Kotka. The company also includes Yanino Logistics Park located in the vicinity of St. Petersburg and a major oil terminal, Vopak E.O.S., in Estonia. Global Ports will continue to be focused on the high growth markets of Russia, ciS and the Baltic States.

Goodman builds logistics centre in Gdańskindustrial space developer Goodman has started constructing one of the biggest port logistics centres across the Baltic Sea (500,000 m2 of ware-house/production facilities, located on a 110 ha site). construction of the first 14,000 m2 warehouse of the Pomeranian Logistics centre (PLc) next to the Deepwater container Terminal Gdańsk commenced in Sep-tember 2012 with delivery planned for the end of Q1 2013. Located 9 km from the Gdańsk city centre and 23 km from the Gdańsk Lech Wałęsa international Airport, the PLc is easily accessible via the S6 ring road and the A1 motorway connecting Gdańsk with Katowice. its close vicin-ity to DcT provides a good opportunity for port-centric logistics, bring-ing financial benefits to customers, including reduced re-loading, stor-

age and transport costs. Moreover, the Tri-city (Gdańsk, Gdynia and Sopot) is a growing consumer market of over 1 mln inhabitants while at the same time offering proximity to a skilled and highly educated labour force. The total value of the project is estimated to exceed EUR 300 mln upon completion. Goodman commenced operations in Poland in 2005 and owns and manages over 266,000 m2 of facilities in various locations throughout Poland for customers such as Whirlpool and DHL. The Group holds sites in Poland with a total area of over 210 ha on which it can develop a minimum of 776,000 m2 of warehouse space. Recently, Goodman signed lease agreements with its first customers at the Pomeranian Logistics centre. Logistics operators, Kuehne + Nagel and Terramar are set to lease 3,870 m2 and 3,970 m2, respectively, at the first 14,000 m2 warehouse.20090130_Advertisement Transfennica_landscape_3mmBleed.pdf 1/30/2009 3:55:49 PM

A d v e r t i s e m e n t

Błażej CiesielczakRegional Director, Goodman Poland

The Pomeranian Logistics Centre is a unique location in Poland for facilitating multimodal transport – road, rail, air and sea. We are pleased that our first customers have already recognised the huge potential of the logistics centre. Given the high quality and excellent location of the development, we are convinced that the investment will continue to generate considerable customer interest.

The potential customers we are targeting with this development include companies operat-ing locally, domestically and internationally, across industry sectors including sea transport, logistics, distribution, food and FMCG. Our flexible approach allows us to offer built-to-suit warehouses, production facilities, distribution centres and office areas.

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Maritime

Anholt’s offshore power to DenmarkWith a nameplate capacity of 400 megawatts (MW), Anholt Offshore Wind Farm, built between Djursland and the island of Anholt in the Kat-tegat, will be the largest offshore wind farm both in Denmark and in

the whole Baltic Sea area. The project was conceived in February 2008 as part of the Danish government’s Energy Policy Agreement. it will en-sure that the government is able to achieve its target of more than 30% renewable energy share by 2020. in 2010 DONG Energy was awarded the concession to build the park and in 2011 PensionDanmark and PKA ac-quired a total of 50% of Anholt, making approx. 840,000 Danes co-own-ers of the offshore wind farm. Siemens Wind Power has been contracted by DONG Energy to supply 111 of 3.6 MW wind turbines for the project. The foundation is based on monopiles, and the water depth is between 15 and 19 meter. in September 2012 the first turbine was installed and a few weeks later it produced its first cO2-free power and exported to Denmark’s power grid. By the end of 2012, 14 out of 18 installed turbines achieved to produce electricity. The total production from the wind farm in 2012 was 31.5 GWh. in summer 2013 the park will be in full operation. The estimated cost of the wind farm will reach DKK 10 bln (EUR 1.35 bln), excluding the grid connection and offshore transformer.

FSG delivers its largest-ever ro-ro vesselin December 2012 Flensburger Schiffbau-Gesellschaft (FSG) handed over the first of two identical ro-ro cargo ships to the Turkish shipping company Ulusoy Sealines. The 208 me-tre-long Ulusoy-14 (Hull No. 753) is the biggest and longest freight ferry ever built by FSG. The sisterships with space for 283 trailers and a loading capacity of 4,094 lane metres will ply on the route between cesme and Trieste where they will replace four older vessels. Ulu-soy-14 and her sistership Ulusoy-15 have almost the same freight capacity as the four older units and their optimized designs allow them to be more efficient and eco-friendly – con-suming significantly less fuel and having considerably less waste gas emissions. The hand-over of Ulusoy-15 is scheduled for January 2013. Financing for the two Ulusoy Sealines freight ferries came from the KfW ipex-Bank GmbH and Euler Hermes Exportkreditversi-cherung. in addition to the ferries for Ulusoy Sealines, the yard’s order book also contains a

third sistership for U.N. Ro-Ro from Turkey, a con-ro vessel for the canadian shipping company OcEANEX, two semi submersible heavy lift vessels for RollDock (Netherlands), two seismic research ships for WesternGeco (England) and a ro-pax ferry for cMAL (Scotland).

Baltic Transport Maps portal launchedBTJ’s maps have entered the internet, giving free access to a market overview of regular BSR and Baltic-linked ro-ro & ferry as well as container services. We have included our own work in the 2012 highlights, not because we seriously lack modesty, but because we truly believe that our interactive portal will revolutionize the market. So far people have learned about transport options in the region from commercial presentations, chatting at conferences and trade fairs or other (often not verified) sources. We wanted to change that and now everybody has free 24/7/365 access to data about regular ro-ro & ferry and container market across the BSR. Under the www.baltictransportmaps.com address you can find all ports, sea & mainland terminals as well as shipping & rail companies carry-ing ferry passengers, trailers and containers to/from and within the Baltic Sea and the re-gion. Now market players and their clients can compare options and choose the best route, be it by sea, rail or a combination of both. Both maps go hand-in-hand with BTJ’s first two Yearbooks (Ro-Ro & Ferry as well as container) – publications of detailed market analysis, an overview of current trends, analysis of ship-ping operators, lines and the fleet, ports and terminals, with an extended view into land transportation, all backed by statistics, tables and maps.

Lena Lorenc, Piotr Trusiewicz

Flemming ThomsenProject Director of Anholt Offshore Wind Farm

Anholt Offshore Wind Farm is a massive investment – what challenges are you incurring during the pro-ject’s implementation?The realisation of Anholt Offshore Wind Farm is taking place in accordance with the strict time limitations set up in the tender process. This means the Anholt Offshore Wind Farm will be constructed within two winters and only one sum-

mer putting pressure on a robust logistic setup, and tight coordination of the deliverances and installation vessels. Further, the sea bed conditions in the Kattegat area have been very challeng-ing. The northern part of the 88 km2 area has revealed areas with a very muddy sea bed, whereas the southern part is dominated by large boulders. As preparation to the construction, almost 5,800 boulders had to be repositioned; this has resulted in 25 artificial reefs within the area. Logistically, it is a challenge with up to 100 different vessels involved, at the moment, around 25 at the same time. Offshore activities will count around 2 mln man-hours, and a large number of suppliers and onshore activities, even some harbours, are involved in its construction.

Has DONG Energy ever worked on a project of this magnitude?Yes. Even though this is by far the biggest offshore wind project in Denmark, we are building yet another, even bigger, project in the UK, the London Array offshore wind farm with a total of 630 MW and a number of parks nearly the size of Anholt. Actually, DONG Energy, at the moment, is the market leader in constructing offshore wind farms.

How do you see the meaning of Anholt Wind Farm and the perspectives for offshore wind energy development in Denmark as well as on the Baltic market?The Anholt Offshore Wind Farm will, when completed, be the biggest offshore wind farm in Denmark. It will produce enough electricity corresponding to the consumption of 400,000 Dan-ish households and contribute 4% to the total Danish electricity production. It is a big achieve-ment, and we are very satisfied with this project being carried out according to schedule in order for us to supply Danish households with sustainable energy. Towards 2020 Denmark has plans of an additional 1,500 MW offshore wind some in the Baltic Sea; both Germany and Poland have plans for offshore wind in the Baltic Sea within this same time frame.

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Gdańsk – intensifying container competition on the Baltic

A winning streak

Not only Poland, but also the entire Baltic shipping sector, is support-ing the idea of developing the Deepwater Container Terminal Gdańsk (DCT). The set up of a container terminal able to receive oceangoing container ships all year long has reshaped the box trade in this part of the world as well as put pressure on port authorities and shipping com-panies to revise their transport rates. It also gave a good reason to re-think the issue of Central & Eastern Europe’s hinterland.

In January 2004, the officials of the Port of Gdańsk and DcT signed an agreement to lease out 33 ha of land. The deal concerned constructing a new quay and a container

terminal with a yearly capacity of 1,000,000 TEU. Wisely, both parties wrote down in the agreement a provision aimed at further devel-opment of the facility. However, only a few studies foresaw the dynamics which have been witnessed by DcT during recent years.

Three years later, on October 1st, 2007, DcT’s official kick-off took place and immedi-ately thereafter the necessity of subsequent in-vestments (meant to capture a larger portion of the Baltic container market) was clear to every-body. At that time, Gdańsk Port Authority car-ried out studies on trade patterns across Europe and the whole world. The port started to realize its ‘Strategy of Development’ which also cov-ered the extension of container operations and an extra 27 ha of land was put forward in this regard. On the 11th of February, 2013, the Port of Gdańsk and DcT signed a preliminary lease agreement which was the first step in estab-lishing the Deepwater container Terminal 2. construction works of DcT 2 will set off this year and the new facility is scheduled to reach its full operational capacity in 2016. Then the combined yearly throughput of DcT and DcT 2 will total 4 mln TEU.

“in January 2013, DcT handled over 106 thou. 20-foot containers and i’m extremely pleased to have such a start to the New Year,” said Boris Wenzel, the man in charge of DcT for many years. “it is a clear signal that our decisions concerning continuous investments were and are right. i’m also positive that DcT will uphold a winning streak maintaining at the same time a high level of our clients’ satis-faction,” Wenzel stated. Jerzy Melaniuk, cEO of the Port of Gdańsk, added he is confident that DcT’s owners will take pride in all the commitments and hopes invested in Gdańsk. “A container terminal in this part of the Baltic Sea, according to all prognoses, must be prof-itable,” Melaniuk stressed.

Figures reported by DcT have converted even the biggest sceptics who have been care-fully watching the Baltic box market for the past couple of years. Today, none of them

questions the Baltic hub role of Gdańsk and DcT. The value of freight shipped through Gdańsk and Gdynia put its two penn’orth in the discussion as well, leaving no place for contesting the very sense of allocating funds into technologies aimed at handling seaborne cargo in Poland. Gdańsk alone handles goods worth over EUR 24 bln each year; a large por-tion of this sum goes via DcT.

Even the most cautious forecasts see Gdańsk’s volumes doubling in the upcoming

capacity by 2016. The well-known advantag-es of the terminal, i.e. all-year accessibility, excellent approach conditions, modern icT tools and the possibility of receiving even the largest container vessels, give a good base for realizing the plan on time. Due to Maersk Line’s direct deep-water services with the Far East, DcT has become a gateway for central & Eastern Europe’s hinterland. The terminal is extending its reach thanks to ongoing road & rail investments, e.g. intermodal connec-

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15 years. The same for container traffic, as the Baltic Sea region follows world box schemes. Not looking too far back, only 30 years ago, container trade generated 50 mln TEU of traf-fic. Two decades later this figure has jumped up by 700%. Numbers are still increasing and approx. 90% of boxes go through ports’ quays. Poland, after Russia, Sweden and Finland, is in 4th place in the Baltic, however, Gdańsk is now competing with St. Petersburg and Gothen-burg, the two biggest players on the BSR con-tainer field. The port and DcT are throwing down the gauntlet to Hamburg and Rotter-dam and, for an increasing number of clients, they are becoming more attractive than ports of the North Sea.

DcT, operating just five years, handled nearly 1 mln TEU in 2012. With investments and construction works in the pipeline, the company plans to reach 4 mln TEU of annual

tions with southern Poland, Moscow and Ukraine. container operations, as well as the overall performance of Gdańsk port, will be enhanced by Goodman, a global property expert in logistics and business space, with its 500,000 m2 Pomeranian Logistics centre. The proximity of DcT was one of the main reasons for Goodman choosing this location for the company’s facilities.

The Port of Gdańsk, together with DcT, forms a significant part of the logistics chain going all the way from Scandinavia to south-ern Europe. it’s hard to overestimate the role of both parties in the European Union’s eco-nomic policies. it’s difficult, too, to disregard the role Gdańsk has started to play on the cross-roads of the Baltic container traffic. �

Janusz KasprowiczPort of Gdańsk’s Spokesman


Maritime

BIMCO Reflections 2013

BIMCO is predicting an improvement in the global situation of the shipping industry in 2013. However, still firmly agitates a step forward: stronger international co-operation and even greater concentrated efforts that have to be put into improving the overall situation. In this BIMCO sees the key to resolving problems with piracy as well as heal-ing economic and environmental situations, and enhancing working conditions of seafarers and their education.

Stepping forward

For the year 2013 BiMcO forecasts a boost in the global economy. The expected turn of the tide on the macroeco-nomic scene, as well as global GDP growth, should be a relief to the shipping industry this year. However, it is im-

portant to acknowledge the distribution of the worldwide economic improvement as the key factor in the way of affecting the industry.

Overhang of tonnage is still one of the primary concerns and even though the ship owners are putting much effort into handling the problem, overcoming it will still take some time. Therefore, BiMcO is putting forward the concept of EcO-ships which can be a solution because of the potentially considerable fuel savings they can bring. However, what has to be emphasized is the fact that, for now, new ships, taking into account the already existing overhang of tonnage, will be of more trouble. Thus, BiMcO suggests that at present, the focus should be on the current fleet and its energy efficiency.

What is more, the overhang of tonnage is the cause of a substan-tial drop in freight rates and earnings. Yet, there is a forthcoming improvement of the situation to be seen in 2013 as china has shown a growing demand for iron ore since the end of 2012 and is likely to continue to import more. What is important and consolatory here is the fact that china is one of the largest users of the sea, thus has a big influence on the shipping world.

Regulations and market accessBiMcO still strongly advocates the need to recognise the

enormous impact of the shipping industry on the lives of people around the world. if the industry is to maintain its efficient per-formance in assisting the progress of globalisation and growth, it is vital to acknowledge the fact of dependence upon the global market. Therefore, the need for a clear-cut and internationally agreed upon framework of regulations is a must. Going further, another crucial factor in that matter is free market access. De-spite the current troublesome situation of the market, there are significant positive signals, for instance the rejection of the idea of a cargo sharing system by the chinese government during the 2012 china Summit.

The environmentSpeaking of regulations, there is an augmenting development

that has to be mentioned, namely the one focusing on ships’ im-pact on the environment. currently, the key issues which are on the environmental table are the following: sulphur, nitrous oxides and Greenhouse Gas (GHG) emissions as well as the transfer of invasive species via ballast water. The fact that these problems should be ad-dressed quickly and thoroughly leaves no doubt. However, the dif-ficulties, primarily financial, must be taken into account. it is vital to gain more knowledge and data on the issue so as to effectively and efficiently employ the mechanisms that would enhance the

fight against the negative impact of the ships on the environment. BiMcO looks with hope to the fact that iMO will provide practical guidelines for ship owners and thus assure them of the fruitfulness of the regulations.

The human elementBiMcO continues to emphasise the importance and value of

human resources in the shipping industry. consequently, the fair treatment of seafarers and their education is of major importance and needs to be promoted. Discrimination and criminalization, which are difficult to prevent, are among the seafarers’ experiences occurring on a daily basis. That is why all the countries should con-form to their international responsibilities under UNcLOS as well as obey the 2006 iMO/iLO Guidelines on fair treatment of seafarers and the 2020 iMO casualty investigation code. BiMcO enthusias-tically welcomes the entry into force of the iLO’s Maritime Labour

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convention in August 2013 as it will actualize the circle of the internationally agreed upon regulatory framework for shipping, which already includes MARPOL, SOLAS, and STcW. BiMcO be-lieves that it is crucial to comply with all the rules and regulations, hence the decision on developing informative pamphlets. They are supposed to serve companies and crew members and help them be-come acquainted with the regulations in an easy manner.

Education maintains its position as one of the most important pillars for BiMcO. it is important to address the issue of ageing and train new, young professionals. BiMcO, realising this, established its e-Learning Diploma Programme. For some time now it has been developing and acquiring more and more supporters as well as “stu-dents” and will definitely continue to do so in 2013.

is also vital that countries co-operate and exchange information on different experiences involving piracy to efficiently deal with the core of the problem. Additionally, piracy should be looked at as organized crime and, regrettably, out of this complex net of criminals so far only the buccaneers have been sentenced to prison. Despite the improvement in dealing with piracy, more focus should be placed on the involvement of the navies and on working out the criminal business itself.

When it comes to piracy BiMcO points to the new area of focus, alongside Somalia: the Gulf of Guinea. The criminal ac-tivity occurring there comprises 3 types: armed robbery – theft of goods/crew belongings, theft of cargo/product and holding members of the crew ransom. Those events have been recognised and the international Maritime Organization is at present focus-ing its efforts on that area.

PiracyAs it is in any area of life, the vital element in searching for

and obtaining a good solution to a problem is to focus on detect-ing and eliminating its cause. This is also the case for the ship-ping industry and its biggest problem, namely piracy. it is an intricate issue that has to be addressed in a concentrated manner as well as from every possible perspective. Here, BiMcO puts emphasis on the importance of the military action that should accompany political, economic, legal and diplomatic efforts. it

2007 2008 2009 2010 2011 2012F 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Current situation New Piracy Wave

Containment

Permanent Solution

Today

Coordinated naval force andarmed security guards

response reduces attacks

New actors get involved in anattempt to protect piracy-based

economy

Lethal force remains dominantcounter-measure with

increased violence on bothsides

Sustainable economicdevelopment and reinstating

Somalia as state reduces piracyattractiveness

Source: A.T. Kearney analysis

Possible Scenarios on Piracy

World Trade Volume and GDP-Growth Rate%-change year-on-year

-15

-10

-5

0

5

10

15

Volume of imports of goods Gross domestic product, constant prices

20052002 2003 2004 2006 2007 2011 2012F 2013E 2014E 2015E 2016E 2017E2008 2009 2010

Everything described above is indeed of crucial importance; however, what goes on top of the agenda is reinforcing all the pos-sible means and efforts that can be put into freeing about 150 seafar-ers who are held hostage by Somali pirates.

HopeOverall, the predictions for this year are positive. The direction

and the shape that the shipping industry is about to take looks hopeful. Yudhishthir Khatau, the president of BiMcO, reminds us that, as in any other business, shipping is also governed by the rules of cycles of “ups and downs.” Despite difficulties and occasional adversities, he reassures us that their efforts will still be strong and concludes by telling us to “stay optimistic and confident that the worst is behind us.” �

Katarzyna Błońska

Fig. 1. World trade volume and GDP-growth rate (%-change year-on-year)

Fig. 2. Possible scenarios on piracy

Source: A.T. Kearney analysis

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Maritime

The Ballast Water Management Convention

The Ballast Water Management Convention (BWMC) could come into force next year. It is an important step for the shipping sector to decrease its impact on the marine environment which, in the case of invasive species, can be very costly for civil society. By being constructive and to interact with other stakeholders, the shipping sector can partake in shaping its own future regarding this topic – for the benefit of itself and the ecosystem.

Policy in tune with science?

The BWMc has been on the agen-da since the Rio Declaration in 1992 and even more so since the convention was actually final-

ized within the international Maritime Organization (iMO) in 2004. Many coun-tries have already ratified the convention; nonetheless, it still needs all but 6% of the gross tonnage of the world’s merchant fleet to reach a 35% threshold (a single big flag would actually do in this regard). The con-vention will come into force one year after ratification and 2014 could be that year.

Why a convention?The ballast water itself is not the problem

– it is the passengers in it. Every time water is pumped into the ship, billions of tiny liv-ing organisms come along for the ride. The tank is much like an aquarium, with calm static water and even food with which the organisms are transported all over the world. Some die in the darkness, but many do not. Very few of these organisms could

manage this journey by themselves. There are too many natural barriers in our marine environment: temperature, salinity, oxygen, ecological processes, stratification, etc.

When travelling by ship, however, the “stowaway” organisms bypass all these barriers and end up in an environment to which they are completely alien. in most cases, they will perish or at least not be able to reproduce. in some cases (and at present we don’t have the knowledge to precisely characterise such circumstances) alien or-ganisms find a niche and thrive, immediate-ly affecting the local ecosystem. The effects can be slow and difficult to measure or they can be very drastic and ruthlessly impact the surrounding environment. in other words – we are dealing with a full-scale invasion.

One of the worst examples of such an invasion is the American comb Jellyfish which was introduced into the Black Sea, most probably via ballast water exchange, and destroyed the region’s sardine fishery which had a very big market value and was

the base for a great number of people’s live-lihood. There are also many other examples. So far over 100 alien species have been reg-istered in the Baltic Sea. Some of these have already been identified as causing a signifi-cant cost to civil society in different ways. What’s worse – such invasions are practical-ly irreversible. in contrast, an oil spill can be cleaned up and a healthy environment can recover sooner or later, but once an invasive species is part of the ecosystem, we simply do not have enough power to get rid of it. Although ballast water is not the only vector for invasive species, it is the single biggest for the marine environment.

Exemptionsin short, all ships that handle ballast

must install equipment that guarantees that practically no living organisms are released into the water. There are as many as 29 water cleaning techniques approved by the iMO. They use light, heat, radicals or chemicals. Shipping companies will

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18th INTERNATIONALEXHIBITION & CONFERENCEFOR TRANSPORT & LOGISTICS

23-26 APRIL 2013VVC EXHIBITION CENTERMOSCOW

20,149 m2 (gross)24,233 attendees523 participants29 countries12 national pavilions

ITE Group PlcAnastasia EmelianovaTel +44 207 596 [email protected]


have to retrofit their vessels with such equipment – that means costs and the loss of time and on-board space.

Within the convention, however, there are some exemptions which countries have a responsibility to define themselves. it ba-sically states that a certain route may be exempted from the convention if there is a negligible risk of spreading alien species be-tween its endpoints, i.e. ports.

This is of course acceptable in principle. The primary problem is that we have very little knowledge of the actual distribution of all organisms; many are not even visible to the eye in their juvenile phase. Without that expertise, we can never know what route is safe and which is not. Secondly, it is very dif-ficult to know what organism may become a dangerous alien in a certain area or not.

The Baltic States are now working with the Helsinki commission (HELcOM) to find a unified way to deal with how to iden-tify routes to be exempted from the conven-tion. The fact that they are aiming towards a single cross-boundary policy in the Baltic Sea, probably including the North Sea as well, is worthy of credit. However, this also means that the design of the policy will have a great impact on the marine environment and also on shipping. A good policy based

on thorough scientific data will help ensure that shipping will significantly reduce its potential for causing damage to civil society with their ballast water. it is both fair and in accordance with the ‘polluter pays principle’ and it will mean that shipping has taken an important step towards being the undisput-ed least harmful way to transport goods. it will also most probably mean that exempted routes will stay such as control sampling will likely show a similar result over time.

A policy based on weak environmen-tal data will be like playing Russian rou-lette with the Baltic Sea environment and its coastal citizens by means of the ballast water. it will also cause uncertainties for shipping companies as routes may some-what randomly become exempted (or not) depending on varying outcomes over time. This will of course be problematic in a logistics sense of the word. And, ad-ditionally, quite frustrating. imagine that a ship will need cleaning equipment one period and not the other; or a shipping company will be forced to continuously shuffle their fleet fitted with a mixed setup of equipment in order to counter changes in route exemptions.

And, last but not least, who will pay for specifying links to be exempted from

the BWMc? An administratively simple method is letting every shipping com-pany pay for the research for every route they would test for possible exemptions. it could prove a little bit expensive. An alter-native way is for different shipping compa-nies to pool resources. And thirdly – ports can fund and organize the sampling within their facilities and sell the information to the shipping companies. Both the second and the third are likely to be cheaper than the first alternative. As the funding strat-egy does not impact the effectiveness of the policy, the most important thing is that it suits the industry as much as possible. if the shipping sector is in favour of a certain funding strategy, they would do well in be-ing proactive.

One of the greatest achievements of science is scepticism. it defends us from rushing into ventures without a second, third or even a tenth thought. This is im-portant as our knowledge about ecosys-tems, its components and relations be-tween them is limited. All, not only the shipping sector but also the environment and civil society, will greatly benefit from a firm and science-based policy. �

Mattias Rust, WWF


Maritime

Seaborne perishable trade

The cultivation of vegetables and fruits, fish catching, farming and production of meat products is the bread and butter, if not one of the necessities of people across the world. Seaborne transport of farmed, caught and processed goods in specialised conventional reefer ships and refrigerated boxes covers only a small per-centage of all those human efforts. Yet, worldwide per-ishable maritime trade now covers over 90 mln tonnes!

Hot war over reefers

I f you, at least your mind, want a virtual trip around the world then read the fruit and vegetables labels in your lo-cal supermarket and see such products as: apples from Ar-gentina, aubergines and tomatoes from Morocco, bananas

from colombia, blueberries from chile, grapes from india, kaki fruit and prunes from israel, kiwis from New Zealand, mangoes from Brazil and pineapples from costa Rica… Go for another label reading session to the same supermarket in a few months’ time and you are likely to see the same fruits and vegetables, but now from different far away origins. What is more, all the “fresh” goods, as an example, look and feel as if they were picked an hour ago from the tree in the supermarket’s own orchard next door. is there any better demonstration of the capabilities of all those parties operating (deep) seaborne reefer services and that great variety of complementary activities?

Containers eat the cake…However, the mentioned 90 mln tn again makes it a modest

shipping segment, accounting for barely 1% of the worldwide seaborne trade of all kinds or 2.6% if considering all dry cargo

(excluding dry bulk). At the same time, “reefer shipping” repre-sents, beyond doubt, one of the liveliest shipping activities. Why? More than any other cargo, fresh products require constant and very special(ised) care involving numerous individuals, organisations, companies and most advanced techniques, at sea and onshore, to ensure that the product arrives “fresh” to the consumer.

Tab. 1. Seaborne perishable trade by commodity [mln tonnes]

Commodity 2011 2010 2009 2008 2007Bananas – 14.14 14.56 15.16 15.28Citrus – 5.58 5.73 5.43 5.29Deciduous – 7.84 7.89 7.75 7.60Exotic fruit – 3.10 2.95 2.83 2.77Fish/seafood – 15.38 14.80 14.82 15.12Meat/poultry – 21.46 20.28 21.18 19.10Dairy – 1.78 1.76 1.70 1.76Other – 16.84 16.95 17.71 17.27Total Exports 90.90 86.13 84.92 86.58 84.19

Source: Sextant Consultancy

Reefer shipping is split in two operators segments: special-ised companies deploying conventional reefer ships as well as box carriers using refrigerated containers. The “battle” be-tween the two has continued unabated over a period of more than 10 years now.

The reefer box operators have no doubt been successful in obtaining a higher share of the business every year, especially since they have also started (in 2007) dedicating, in part, sea-sonal “reefer-heavy” container services between specific supply and demand areas. Undoubtedly, they have also offered (some-times much) lower rates than the conventional operators nor-mally did or were able to.

Therewith they managed to remove the appetite to invest in this specialist conventional sector with the result of a shrinking fleet. in 2012 alone, no less than 67 reefer ships of larger than 100,000 cubic feet capacity were scrapped, adding to the 48 and 46 units, respectively in 2011 and 2010.

At the current pace of demolition, taking into account the age at which reefer ships are sent to the torch and assuming no further newbuildings, the number of active break bulk reefer ships will be reduced to around 370 units by 2020.

…more and more…Seatrade, by far the largest conventional operator, has esti-

mated that in 2012, 29% of perishable trade travelled on spe-cialised vessels. it expects this to further decline to 23% by 2016, despite an annual market growth of 4%. That leaves the container with a share of 71% of the 2012 seaborne reefer cargo volume, to grow to 77% in four years’ time.

Also in 2012, worldwide container capacity increased, after scrapping, by 20 ships/944,000 TEU with approx. 76,600 reefer plugs, theoretically capable of accommodating 153,000 reefer TEU, and by more than 230,000 TEU of predominantly 40’ high cube reefer containers.

However, and obviously, not each and every container ship in the world is competing against the conventional segment. in fact, it makes little sense to compare a specialist reefer ship

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fleet with a worldwide full container vessel fleet. it is princi-pally those ships operating on the perishables-heavy North South routes connecting Latin America, southern Africa and Australasia with Europe, North America and the Far East.

in September 2012, 730 box ships were deployed on those routes. With their total 3.6 mln TEU capacity, they made up just 17% of the world’s fleet. in terms of their nearly 390,000 reefer plugs it was quite higher (22.5%) which clearly demonstrates their reefer-heavy character.

Tab. 2. North-South reefer routes operated by reefer-heavy container ships

Trade lane Services Carriers Ships Average Average Total Total Weekly WeeklyTEU plugs TEU Plugs TEU Plugs

Latin America 61 30 439 4,000 580 1,766,200 254,800 244,000 35,400Southern Africa 19 15 155 4,100 490 633,600 76,700 77,900 9,300Australasia 27 28 165 3,400 460 567,900 75,500 91,800 12,400Total 107 42 732 3,800 530 2,796,200 387,700 406,600 56,700

As is well known, it is actually the size of the reefer box fleet that determines the actual reefer carrying capacity of the container segment. Plugs are obviously a requirement, but there is a substantial overhang of them, amongst others to ensure a flexible stowage configuration.

Maersk Line, in 2012 having lifted some 700,000 40’ High cube full reefer containers with its 470,000 TEU reefer box fleet is the larg-est reefer container carrier. Five percent of the Danes’ reefer shipping turnover is realised on the Europe-Far East trade, 20% on the Africa routes and 33% from Latin America. By equipment numbers, MSc (275,000 TEU) and cMA cGM (150,000 TEU) come in second and third, respectively, followed by Hamburg Süd (118,000 TEU).

combined, the world’s fifteen largest conventional reefer ship operators commercially operated 310 vessels of larger than 100,000 cubic feet by mid-2012. The ships had a total reefer space of 141 million cubic feet, equalling 64% of the world’s conven-tional reefer ship fleet by capacity.

With the exception of those employed by fruit traders, conven-tional reefer ships are often operated in a pool, with the pool manager acting as the commercial manager, i.e. the operator. One owner may have its ships distributed over more than one pool, whereas ships may also switch between pools. Seatrade Pool, for instance, is composed of around 45% Seatrade-controlled units, complemented with ships

Remarks: Reefer-heavy container ships have either minimum 1,000 plugs or their number of plugs is more than 20% of their TEU capacity.

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contributed by no less than six other owners and managers. At the same time, Seatrade has also placed ships in GreenSea Pool.

With 40 mln cubic feet, a market share of 18.1%, Seatrade Pool is by far the largest player, ahead of four around similarly-sized con-ventional specialists: Frigoship, Great White Fleet, GreenSea Pool and NYKcool. The ranking includes the in-house carriers of seven fruit traders, in alphabetical order: Africa Express Line – compag-nie Fruitière, France (40% Dole-owned); cosiarma – italian GF Group; Dole Ocean cargo Express – Dole Food company, inc., USA; Ecuadorian Line – The Noboa company (Bonita), Ecuador; Fyffes – Fyffes PLc, ireland; Great White Fleet – chiquita Brands international, inc., USA as well as Network Shipping – Fresh Del Monte Produce inc., costa Rica.

Together they are responsible for 40 mln conventional cubic feet of reefer capacity. it is these carriers that are showing increasing interest in shifting to containers. This includes replacing their own-operated conventional reefer services by slots from box carriers of the same lane.

Tab. 3. Top 15 Conventional reefer operators

Rank Operator Ships Average Total CapacityCubic Feet Cubic Feet Share

1 Seatrade 84 475,400 39,932,000 18.1%2 NYKCool 20 583,100 11,663,000 5.3%

3 GreenSea Pool 43 266,300 11,451,000 5.2%

4 Frigoship 39 288,900 11,267,000 5.1%

5 Great White Fleet 17 589,700 10,025,000 4.6%

6 Network Shipping 20 466,300 9,325,000 4.2%

7 Star Reefers 17 526,800 8,956,000 4.1%8 Baltic Reefers 16 554,900 8,879,000 4.0%

9 Africa Express Line 8 586,500 4,692,000 2.1%

10 Fresh Carriers 11 422,600 4,649,000 2.1%

11 Ecuadorian Line 8 575,100 4,601,000 2.1%

12 Fyffes 8 570,400 4,563,000 2.1%13 Maestro 6 667,900 4,008,000 1.8%

14 Dole Ocean Cargo 7 509,000 3,563,000 1.6%

15 Cosiarma 6 554,900 3,329,000 1.5%Top-15 310 454,500 140,902,000 64%Other operators 358 221,100 79,143,000 36%

Grand Total 668 329,400 220,044,000 100%

Share Top-15 46% - 64% -

Remarks:Capacity has been allocated to the carrier actually responsible for the long-term com-mercial operations of the ships

…but old boy reefers strike back!As previously stated, with the current policy and pace of dem-

olition, the number of active break bulk reefer ships will only be around 370 units by 2020. So, is the end of the conventional reefer segment in sight? That remains to be seen, as the relevant operators appear to have been caught by a refreshing optimism!

For instance, Seatrade, the world’s largest reefer operator con-trolling a capacity share of over 18%, expects the conventional reefer trade to be close to reaching a new equilibrium in terms

of supply and demand, predicting healthy 2013 peak season rates helped by this year’s abundant scrapping.

Then news emerged on (most probably) Star Reefers Pool placing an order for three conventional reefer ships, around 300,000 cubic feet. if materialised, this would be the first reefer ship newbuilding order in four years. in turn, Siem Shipping, operating under the Star Reefers brand, also plans to lengthen four of its existing vessels with a container hold.

This newly found optimism may be fed by individual announce-ments of Maersk Line, cMA cGM and MSc with other companies following suit that they will increase their (40-foot) reefer box rates by USD 1,500 across the board effective 1st January. All adhering to the argument that the current costs and required investments are not covered by freight revenues.

The general opinion among refrigerated produce shippers, afraid of losing business because of the increases, seems to be that the container operators think that they can cash in now after having successfully marginalised the conventional sector…

A slice for everybody?Even at present, by early February, it may still be too early to

assess whether the intended bold reefer container rate increase of USD 1,500/unit has been successful or whether refrigerated pro-duce shippers have en masse returned to the break bulk reefer ship instead. According to reefer market talk: Ecuador to Mediterranean trades reportedly accepted the increase in full; central America to the US, the increase largely failed because of the relatively short dis-tance; Rates from South Africa increased by around a USD 700 av-erage; Transpacific westbound hikes not holding as demand is slow and equipment ample; and last but not least – Argentinean shippers have, in part, returned to conventional shipping.

in the 5th week of 2013, at the start of the peak season, Time charter Equivalents for conventional reefer ships, as quoted by ReeferTrends, were 74% higher for 270,000 cubic feet ships and even 128% (higher) for 450,000 cubic feet vessels year-on-year. compared with the 7-year (2005-2012) average, it was 34% and 22%, respectively. As stated above, it is still early days… �

Dirk Visser, Dynamar B.V.

Dirk Visser is a Senior Shipping Consultant at Alkmaar-based Dynamar B.V. The company was established in 1981 in response to a growing demand for professional credit and market reports in the maritime sector. Whilst credit risk assessment has remained its core business, Dynamar nowadays also specialises in marine intelligence, consultancy for the liner, container and port industry as well as in dry and liquid bulk markets. The recently

published DYNAMAR (2012) Reefer Analysis: Market Structure, Convention-al, Containers is the company’s latest report on worldwide perishable shipping by conventional reefer ships and in refrigerated containers.

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Peak port on the Baltic Sea


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The Northeast Passage

The Northeast Passage – also called the Northern Sea Route by Russians – is nothing new. It was probed for the first time by gentlemen of fortune in the 16th century and pioneer commercial ventures took place in the 19th cen-tury. However, the route has never been a serious threat to the Suez and Panama Canals. Nonetheless, the recent acceleration of the Arctic’s ice cover melting can seriously change the situation on the playing field.

A new ‘great game’?

S ince the end of the last global warming peak, the Arctic has been on a straight course to be-come completely frozen. This

trend took a man-made 180 degree turn in the 20th century and now Earth’s northernmost region is warming twice as fast as the average for the whole planet.

Since 1979, the year in which satel-lite observations of the ice cover began, the Arctic has lost 40% of its ice extent, while its thickness has dropped by 70%. The past five years have been record low when it comes to the volume of ice. The past year was the worst as scientists noted only 3.41 km2 of ice extent – 50% of the average of the 1979-2000 period. in 2007 (the “perfect storm” year for ice loss) as much ice thawed as in the previous 28 years combined.

The current situation far surpasses the worst-case scenario tabled by the intergovernmental Panel on climate change. Researchers’ views vary on when the Arctic will be ice-free in summer, but

unanimously they do not give it much time – from a couple to a dozen or so years at best. The Arctic may be free from ice all year round by 2050.

Start of a winning streak?What surely will be a disaster for po-

lar bears, gives an opportunity for bulk shippers. According to the latest law enacted by the Russian Federation, the Northern Sea Route (NSR) is limited by the Barents Sea on the west side and by the Bering Sea to the east. Facing north, the NSR is restricted to 200 NM of Rus-sia’s exclusive economic zone. Whereas the Northeast Passage is somewhat larg-er and wider – it goes as far as iceland, Greenland and Rotterdam and also cov-ers the Arctic Ocean. This distinction is important, since it points out the parties who are responsible for the route’s infra-structure as well as search & rescue and environmental issues. it also highlights countries which can derive profits from this promising trade route.

it is evident that when somebody thinks “NSR” Russia immediately comes to mind. in the past times of the iron curtain, the NSR was an internal ship-ping lane of the USSR. Goods from inland Siberia were shipped by the great lakes Yenisei, Ob and Lena to the Arctic Ocean and then to the Ports of Murmansk and Arkhangelsk. in 1935, approx. 246 thou. tn were shipped, 1 mln tn were carried in 1960, 2.4 mln tn ten years later, 4.9 mln tn in 1980 and a record high volume of 6.58 mln tn were marked in 1987. Fol-lowing the fall and decomposition of the Soviet Union, the NSR nearly sank into oblivion.

Turning our eyes to present times, Russia is vigorously undertaking the topic of the Northern Sea Route once again. The passage has been opened to foreign com-panies and the first commercial voyages across it have taken place. According to statistics from the Administration of the NSR, in 2010, the route saw only 111 thou. tn, but a year later the figure jumped by

Maritime

Maritime


640% to 821 thou. tn. 2011’s volume does not include e.g. 1.1 mln tn transported by the company Norilsk Nickel from the Port of Dudinka to, among others, Shanghai. The reason behind this is that the com-pany has proper ice-class vessels and sails without icebreaker assistance and thus is not included in the figures of both the NSR’s Administration and Rosatomflot. in the meantime, the bygone year brought a new record – 1.26 mln tn (+53.5% year-on-year).

As a route starting virtually from scratch, the NSR witnesses new records in a blink of an eye. in 2010, as few as four ships sailed through the passage, while 34 and 46 vessels ran in 2011 and 2012, respectively. To date Sovcomflot’s 1A ice-class 160,000 DWT Suezmax tanker Vladimir Tikhonov (16.5 m in draft) is the largest vessel to run the NSR. The supertanker brought 120 thou. tn of gas condensate to Map Ta Phut in Thailand from Honningsvåg in Norway; accompa-nied by two nuclear-powered icebreakers it travelled the NSR in seven and a half days at an average speed of 14 knots. The receding ice cover was the cause for Vladimir Tikhonov to even consider tak-ing the NSR. The rule is simple – the fur-ther one goes from land, the better depth conditions can be found. For instance, the Sannikov Strait, situated south of the New Siberian islands, was a serious ob-stacle to ships in this regard, but the area north of them is a completely different story.

Another record was set by the 74,000 DWT tanker Perseverance which made three consecutive journeys across the NSR in 2011. Other records were set by Sanko Odyssey – the biggest ice-classed bulk carrier (Panamax) to cross the Arc-tic passage; by Ob River – the first LNG carrier (150,000 m3 of capacity) to sail the NSR as well as by Nordic Bulk carri-ers which made 10 sailings on the North-east Passage in 2012.

Where all the roads meetAll right – one might say – congratula-

tions to the new records, but 1.26 mln tn is hardly an astonishing figure, not to men-tion thousands of vessels sailing through the Suez and Panama canals compared to a few dozen crossing the NSR.

A sceptic could add that the infrastruc-ture along the passage leaves a lot to be desired. The ports of Murmansk, Arkhan-gelsk and Dudinka (the last is from time to time flooded during Siberian thaws) are not much for a shipping lane having over

2,000 NM. in case of emergency it would be extremely hard to rescue the crew, the ship and its cargo as well as alleviate the Arctic pollution-sensitive environment.

Obviously, Russia’s icebreaker fleet is not getting any newer either. The Arctic needs powerful nuclear ships to clear the way, but only the 50 Years of Victory can be viewed as a new unit. The rest will be decommissioned sooner or later. Some of them have problems right now. Due to a seeping coolant system, the river nuclear icebreaker Taymyr had to retreat to its base in Murmansk in June 2011. in De-cember the same year, a fire broke out on Vaygach, another nuclear icebreaker, which left two people dead.

Nonetheless, the above notions are ut-terly irrelevant in the Russian Federation. Here God is second to President Putin who sees the NSR as a future interna-tional – and competitive – transport ar-tery in terms of prices, safety and quality. Russia also means gas & oil at the heart of its politics. And not surprisingly, the Yamal Peninsula has the Shtokman and Prirazlomnoye hydrocarbon fields with quantities believed to match those of continental Russia. Therefore, the state is adjusting its law and icebreaker fees (now USD 400,000) to smooth NSR’s progress and is also allocating funds into a new fleet of icebreakers (most notably the mightiest-to-be a 60 MW nuclear ship built in St. Petersburg), 10 new search & rescue bases along the NSR coast as well as developing a 30 mln tn of yearly capac-ity at the Port of Sabetta, located near the Yamal LNG Project (South Tambey field). Also, both Sovcomflot (the largest ship-ping company in Russia) and Novatek (the country’s second largest gas produc-tion firm) are investing in new and bigger ice-class vessels. Norwegians want to cut out a fine piece of the Arctic cake, too, and will invest EUR 270-540 mln in setting up Norterminal – an oil hub (20 mln of an-nual capacity) north of Kirkenes on the Norwegian-Russian border. The facility should be ready by 2016-17 and can also serve Russian gas & oil production from the nearby Timan-Pechora Basin.

Arctic hydrocarbons are also a focal point where Russia meets Asia’s energy hungry powers – china, Japan and South Korea. The Middle Kingdom cracks a smile to the NSR as a means of solving the ‘Ma-lacca Dilemma’. it’s not only the conges-tion and piracy on the Malacca Strait which matter; it’s mainly the possible interrup-tion of oil flows from the Persian Gulf due to the Arab Spring. china’s dependence

on shipping and ever energy-hungry eco-nomics just cannot afford a breakdown in its supply chain. The chinese government is thus not only investing in science ex-plorations to have something to say about Arctic issues, but is also tightening its re-lationship with Sovcomflot (joint utiliza-tion of the NSR), Norway (research un-dertakings) and iceland (the latter state is enjoying generous anti-crisis funds from china and is perceived as a good tranship-ment foothold for northern routes). Last but not least, in 2010 the country signed a USD 10 bln agreement with the North Korean regime to develop the Port of Ra-jin. Thanks to this, china will have direct access to the Sea of Japan and to the Arctic via the La Pérouse Strait.

On the other hand, Japan and South Korea are the world’s two largest LNG consumers and bringing fuel from the Arctic can mean essential cost savings to them – even up to 50%! Japan is in a good position to become a hub for the rest of Asia. it is also funding studies on Arc-tic-class tankers, while Korean Samsung Heavy industries is developing a double-acting vessel capable of sailing stern for-ward and breaking through heavy ice.

Basing on today’s bunker prices, also including tariffs for passing the Suez and Panama canals and the so-called icebreak-ing fee, Hong Kong is the line of demarca-tion for NSR’s profitability. carrying bulk via the Arctic is more profitable north of this region, while shipments south of it are better transported on more traditional trade lanes. Real savings come from short-er destinations – it takes 14.5 thou. NM to travel from Rotterdam to Yokohama via the cape of Good Hope; 11.2 thou. NM through the Suez canal and just 7.8 thou. NM via the NSR. But bulk carriages aren’t as time-sensitive as just-in-time contain-ers. As a result, the above Arctic route can be sailed in 20 days as well, giving all the benefits of super slow steaming.

interestingly, political experts from Germany see the Northeast Passage as a new ‘great game’ with the potential to shift worldwide trading patterns and sig-nificantly change the world order. They are therefore urging German decision makers to grab a beachhead for the coun-try’s shipping companies (again, iceland tips the scale) before the NSR goes full steam ahead. consequently, it seems that the Arctic has made its way from being an adventurer’s phantom to a first-rate mar-riageable girl for global powers. �

Przemysław Myszka


Maritime

� The Port of Ystad is experiencing a grow-ing number of passengers passing through the port’s quays. What stands behind the increasing pax traffic at your port?

indeed, Ystad perceives itself chiefly as a pas-senger port and in this regard we are Sweden’s third biggest port. Therefore, i think that de-veloping pax services is the right thing to do, not only for the port but also for the whole re-gion of Skåne. We have a lot of tourists coming to and from the Danish island of Bornholm as well as people from upper Sweden visiting Skåne for a couple of days and then embark-ing on a further journey south to Poland. in the opposite direction, we observe more and more Poles coming to see our region.The majority of the increases we are experi-encing in passenger numbers is with Born-holm and today traffic with Denmark ac-counts for over 70% of the whole (last year 1,792,189 people in total). in 2012, our port observed the biggest dynamics in September, in the autumn time. Passenger flows with Poland have also increased (by 0.2% year-on-year), to more than 481 thou. people. Most recently, Polferries moved its ro-pax Baltivia from the Gdańsk-Nynäshamn route to the Świnoujście-Ystad rotation. it will surely help Ystad to become the port in Sweden for Polish traffic. The Poland-Sweden route has

Growth, stabilization and opportunitiesThe Port of Ystad is one of the three largest passenger ports in Sweden. As such it closely follows everything connected with the ferry market which constantly undergoes changes. We talk with Björn Boström, the man in charge of Ystad port, about challenges and opportunities originating from to-day’s and the future ro-ro & ferry business environment.

Interview with Björn Boström, Managing Director of the Port of Ystad

increased over the past years quite a lot, alike the entire port itself, even despite the eco-nomic crisis in 2008-9. in the second year of the slump, the Port of Ystad’s freight turnover increased by nearly 9%, a year later by 18% and by 12% in 2011. in 2012, however, cargo turnover slightly went down by 2.4%, caused by stagnation in Europe. And when there is low productivity, there’s no big need to trans-port goods to and from Bornholm and that’s why freight volumes on this route dropped by 9.5% in comparison to 2011. There was also a lower capacity utilization concerning goods traffic with Poland due to some vessels under-going works in ship repair yards. Nonetheless, looking at the increases noted since 2009, we can call 2012 a stabilization year. As a total we are in the black. Deployment of Polferries’ Baltivia will add numbers to our 2013 cargo statistics, of that i’m sure.

� How do you see the latest reshuffling on the ro-ro & ferry market, i.e. takeo-vers and companies implementing deep changes to their networks? Does it have something to do with the impending stricter sulphur regulations in 2015?

To be honest, i do not know. However, when talking to ship owners, you get the feeling that everybody is waiting and nobody is

willing to take the first step. Maybe they are looking forward to receiving some dispen-sation or that the 0.1% Emission control Areas will be revised in the end. if the iMO rules will enter into force, on the other hand, every ship owner, port and company will face problems. And if somebody invests millions in new technologies and there will eventually be dispensations, then the promised com-petitive edge will cease to exist. There is some talk about states’ subsidies (e.g. Finland par-ticipated in setting up Viking Grace), making the ship’s flag an issue now. Yet, the relevant ministry in Sweden said “no” to subsidizing shipping companies.A future combination, from which Ystad could benefit, is serving ‘triangle’ lorry traffic going, e.g. from Germany, to northern parts of the BSR. if fuel, especially diesel, prices go up, it could be a good option to ship trailers via Ystad, e.g. to Finland, rather than send-ing the driver to run overland in Sweden and then another ferry; the direct sea route will be faster and more fuel-efficient, so the overall cost will be more competitive. Things may turn really good for us. You know, i am an old ferry man and i naturally hate bridges, but the copenhagen-Malmö fixed link re-ally boosts the possibilities for the Ystad port, as the bridge made other shipping lines to Bornholm impossible. Today, 96% and 25% of Bornholm’s pax & freight traffic goes through

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Ystad, respectively. Due to the fixed link, the Polish-borne cargo destined for copenhagen also goes via our port.Ystad has the potential to receive twice as much cargo as now practically without the need for infrastructure investments, so in this context we are prepared for the possibilities the new sulphur rules might bring. And as matter of fact, i do expect an increase in the number of lorries going through our port’s berths.

What’s interesting, many people are talking about the rising volumes of railways traffic in Sweden, but the picture here is quite simple – there are no available slots across the railway network. Today, the government is allocating huge funds to level up the Swedish network to some basic standards, but the amount of rail wagons carried on ro-paxes between Poland/Germany-Sweden is decreasing. Furthermore, in order to accommodate more rail cargo you

have to move some passenger trains first which have a priority over cargo trains.

� What do you think about Liquefied Natural Gas as a fuel for ships?

We are undergoing talks about a potential route linking us with the Port of Sassnitz uti-lizing an LNG-powered ship. Unfortunately, still no one has proved that new fuels will be robust enough to make a company’s day on the Baltic, though, our port could fit pretty well as a bunkering station for LNG if needed. LNG is also a viable solution if someone wants to steer clear from diesel or other oil-based fu-els, so it’s a good option from an environmen-tal point of view. in my opinion, however, it won’t be a final solution. LNG, alike oil, is lim-ited in quantities and still produces harmful particles. LNG will end sooner or later and we will have to come up with a new idea. Bunker-ing is another issue. if you are building a new vessel, there won’t be any problems making tailor-made tanks as to be sure that sailing, e.g. from Ystad to Świnoujście and back, could be done on one tanking. Difficulties arise when you have to retrofit a ship and the available space ties up your hands.

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Maritime

Supporting eco-friendly shipping

In 2012, 100 tonnes of sulphur dioxide emissions were reduced thanks to the Port of Gothenburg’s fuel quality programme. The fo-cus on cleaner fuel will continue during 2013, as it brings benefits to the port as well as to firms which have decided to go green, not to mention the environment and the health of local citizens.

Green Gothenburg

The port of Gothenburg has been run-ning its eco campaign (arranged in consultation with the Gothenburg Shipbrokers’ Association, environ-

mental organisations and a number of the port’s customers) for several years and ap-plied an environmentally differentiated port charge. Shipping lines which utilize fuel with a sulphur content higher than 0.5% have to pay a surcharge. However, the gains are rein-vested and those who commit themselves to the fuel quality programme receive support.

The carrot (and no stick)As part of the campaign, vessels that

opt for cleaner fuel whilst operating in the port’s fairways get financial compensation. Ships classified as green will also be grati-fied. Shipping companies can even apply for financial support to convert their ves-sels to run on Liquefied Natural Gas or other equivalent clean fuels.

One part of the eco campaign is directed at shipping lines and operators which use fuel with a maximum 0.1% of sulphur content. Shipping lines that incur extra costs for using cleaner fuel in the Gothenburg traffic area

receive compensation of up to SEK 250,000 (EUR 29,000) per year for each vessel.

To date, 44 vessels belonging to seven shipping firms have joined the initiative. Maersk Line leads the chart with 19 ships, followed by the latest entrant – Höegh Au-toliners (seven car carriers) and then by Stena Oil (six tankers), Topoil and Thun Tankers Sweden (each add five), OW Bun-ker (one) and Stena Line (one ro-pax).

The voice of the people“This is entirely in line with our envi-

ronmental prioritisations,” states carl Jo-han von Sydow, Project Manager at Topoil, which has five bunker vessels calling at the port, while commenting on Gothenburg’s eco campaign. “it is gratifying that the Port of Gothenburg is at the forefront in this area and that Topoil has the opportunity to be involved and exert an influence,” he adds.

“Our ambition is to reduce our sulphur emissions globally and in time contribute to the complete elimination of sulphur in shipping,” states Karl Jivén, Sustainability Manager at Maersk Line in Scandinavia. The company has recently announced that it has

reached its 2020 carbon dioxide target (emis-sions axed by 25% in comparison to 2007; now Maersk Line wants to lower its cO2 pol-lution by 40% by 2020). “Voluntary projects of this nature are good and we hope that more ports will follow the example set by Gothen-burg port,” Karl Jivén makes a bold wish.

Gabriela Stojicevic, Höegh Autolin-ers’ Head of corporate communications, supports the initiative, “We’re constantly working to reduce our emissions and Gothenburg’s project is to be applauded. it makes it easier for us as a shipping line to reach the decision to operate our vessels on low-sulphur fuel over longer distances than what is actually being demanded.”

Gothenburg’s project takes the floor in the discussion on the upcoming stricter sulphur regulations. “Stimulating the move towards more environmentally adapted transport by offering financial incentives to those that lead by example is a good way to drive development forward. Our aim is that those who are envi-ronmentally smart should benefit. We’re facing a major challenge at a time when we are seek-ing to increase freight volumes, create more job opportunities and reduce emissions. Success requires the commitment and involvement of everyone,” says Åsa Wilske, Senior Manager of the Sustainability Department at the Port of Gothenburg, summing up the initiative. �

Cecilia Carlsson and Gustaf HöökPort of Gothenburg

Maritime

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In 2012, 17 Baltic shipyards deliv-ered 26 seagoing vessels, each with a gross tonnage (GT) of 1,000 or more, and 12 vessels below that tonnage

(Tab. 1). Total production amounted to GT 290,000 – 17% less than in 2011 and much below our prognosis from the be-ginning of last year. Our expectation of GT 400,000 in the 2011 report was based mostly on the failed delivery of two fer-ries from the bankrupt P+S Werften and a prediction that the ferry Viking Grace

The Baltic shipbuilding industry is still at a turning point. After losing the market for most kinds of cargo vessels, it is now looking for customers interested in special and tailor-made vessels. But deal-ing with the new situation remains sailing on shallow and sometimes drying waters – grounding is possible if you are used to sailing deep and wide seas.

Baltic shipyards

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would be handed over in late December of 2012. in the latter case, two weeks may not matter for the market, but it changes the yearly statistics a lot – in this case, push-ing the total Baltic GT below the limit of 300,000 for the first time since 1947.

in 2012, none of the Baltic shipyards delivered a GT over 100,000, a new situ-ation since the late 1950s. Let us remind that in 2008 (it was the last ‘good’ year for the Baltic) eight yards were over that limit and the largest, Odense Steel Shipyard,

made over half a million gross tonnage units. Since then Baltic production (GT 2.3 mln in 2008 – Tab. 2) has diminished by 87.5% (exactly eight times) and its structure has changed. container ships, car carriers and tankers have disappeared from slipways and from order books for-ever; they were substituted, but only in part, by icebreakers, research and offshore construction vessels. Mass production stopped and the series ordered since 2010 has normally amounted to two units.


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But such changes rocketed two figures to record levels in 2012 – production of ships for special purposes (so-called NccV – non cargo-carrying vessels) amounted to GT 76,000 and 17 units (Tab. 3). They include 14 models belonging to six main types (research, offshore support, offshore construction, coast guard, salvage/rescue and tugboat). But another cat-egory, hidden in the traditional classification, also increased rapidly. These were ships built for owners which are providers of public ser-vices independent of their legal form of owner-ship or operation. ‘Public service’ ships usually belong to the NccV group as units of govern-ment agencies (i.e. SAR, coast guard, scientific institutions), but such category should be com-pleted by ferries employed in public transport (domestic only). in fact all these ships are built and/or operated – directly or indirectly, fully or partly – from taxpayers’ money. in 2012 this category reached a record level – Baltic ship-yards delivered 18 ‘public’ ships measuring a GT of 59,096. The group includes 10 NccVs (GT 34,005), and eight ferries of different types (GT 25,091). For comparison, in 2011 a simi-lar classification reveals 11 ships (three NccVs plus eight ferries, a total of GT 20,457) and in 2010 – three units only (all ferries – GT 8,913).

Tab. 3. Baltic shipbuilding by main types according to the UNCTAD workload factor (2012)

Type Workload factor

Number of ships

GT in thou.

NCCV1 46 17 75,915Ro-ro vessels2 32 10 190,501General cargo3 27 4 17,499Fishing vessels 23 3 3,932Ferries 21 3 2,142Total4 37 290,149

1 Non Cargo-Carrying Vessels2 five ro-ro cargo and five ro-pax vessels3 including one deck cargo (heavy load carrier)4 only Estonian pax catamaran Runo (GT 160) delisted

but included in the total GT

Tab. 1. Baltic shipyards delivering over GT 1,000 in 2012

Shipyard CountryNo. of ships delivered in 2012

GT delivered in 2012

GT expected in 2013

Order book for 2014

Total order book – remarks

Flensburger (FSG) Germany 4 90,706 133,600 60,000 193,600STX Rauma Finland 4 63,432 4,000 – 4,000Remontowa Poland 8 35,091 20,000 5,000 25,000

Odense (OSS) Denmark 1 29,429 – – No more shipbuilders

Crist Poland 1 21,900 12,000 – 12,000Nevsky S-S Plant Russia 3 14,004 51,000 – 51,000

Admiralteyskiye Russia 1 12,711 – – Only naval orders

Arctech Helsinki Finland 1 7,100 10,900 – 22,2501

Karstensens Denmark 3 3,524 9,600 – 9,700STX Turku Finland 1 3,360 57,000 99,300 255,6001

Marine Projects Poland 1 2,767 – – –P+S Werften Germany 2 1,740 1,740 – InsolvencySøby Værft Denmark 2 1,330 – – – Uki Workboat Finland 1 1,053 1,050 500 1,550Total 33 288,147 308,4902 164,800 596,0003

Remarks:1 including orders for delivery in 20152 including one vessel from Gdańsk Shipyard3 including orders of Baltiyskiy Zavod, Nordic Yards and Vyborg Shipyard till 2015

Tab. 2. Baltic shipbuilding countries 2008-2012

Country GT 2008 GT 2009 GT 2010 GT 2011 GT 2012Change 2008-12 [%]

Germany 856,464 312,015 268,423 179,8261 92,446 -89.2Finland 565,300 303,665 225,282 49,992 74,945 -86.8Poland 544,620 256,588 36,989 55,0821 59,758 -89.0Denmark 307,582 449,431 438,273 65,276 34,283 -88.8Russia 48,4281 19,666 113,9011 – 26,715 -44.8Lithuania – 2,285 7,962 – 866 –Total 2,323,394* 1,343,650 1,090,8301 349,7481 290,1492 -87.5

1 Figures corrected after the publication in BTJ’s yearly reports 2008 – 20112 Including Swedish (GT 807) and Estonian (GT 329) production

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Following an idea to distinguish ‘pub-lic ships’ from the classification, it seems rational to classify all newbuildings into four categories, depending upon the quali-ties of the market they work or serve, like: sources of financing, influence of politics and regulations, operational connections with different sectors of the maritime in-dustry (Tab. 4 & 5, column ‘category’). The category ‘commercial’ includes passenger and cargo ships built for commercial own-ers, operated mostly in international trade – in 2012 it included nine vessels built for seven customers. ‘Workboats’ cover ships which serve ports, offshore and other in-dustries (PSVs, tugs, etc.). The ‘Fishing’ is maybe the simplest category, exactly follow-ing the UNcTAD classification (Tab. 3), but includes ships acting on a heavy regulated, non-liberal market. The three listed trawl-ers were built for separate owners. And the aforementioned ‘Service’ category deals with ships owned or operated by the gov-ernment, county councils, paramilitary and other public services, sometimes commer-cialised; in this group 2012 newbuildings are the most diversified and include three coast guard vessels, two salvage and rescue units, five research and eight ferries sailing in domestic trade. it leads the chart in the number of units (almost half – 18 of 38) and ranks second in tonnage.

Tab. 4. BTJ’s market categories of Baltic newbuildings 2012

No. of ships

GT No. of contracts/customers

Commercial 10 185,220 7Service 18 59,096 14Workboats 7 41,901 5Fishing 3 3,932 3Total 38 290,149 29

Tab. 5. Vessels built in Baltic shipyards in 2012

Flag GT Shipyard Category Type, remarksAgersø III Denmark 406 Søby service ferryAkademik Tryoshnikov Russia 12,711 Admiralty service research, polarBarøy Norway 5,695 Remontowa service ro-paxBering Sea UK 29,429 Odense commercial Ro-ro, sold1

Bongo Vanuatu 3,806 Remontowa workboat PSVFaaborg III Denmark 924 Søby service ferryHavsnurp Norway 1,375 Karstensens fishing pelagic trawlerInnovation Germany 21,900 Crist workboat offshore constructKBV 031 Sweden 870 P+S service multipurpose patrolKBV 032 Sweden 870 P+S service multipurpose patrolKindral Kurvits Estonia 1,059 Uki service multipurpose patrolLandegode Norway 5,695 Remontowa service ro-paxLeinebjørn Norway 1,750 Karstensens fishing pelagic trawlerLewek Andes Singapore 4,087 Remontowa workboat PSVLewek Aquarius Singapore 4,142 Remontowa workboat PSVLødingen Norway 5,695 Remontowa service ro-paxLövön Sweden 807 Tjörnvarvet fishing stern trawlerMeri Finland 3,360 STX Turku commercial heavy load carrierMerweriver Netherlands 2,767 Marine commercial general cargoMirabilis Namibia 2,131 STX Rauma service research, fisheryNeva-Leader 1 Russia 5,686 Nevsky commercial general cargoNeva-Leader 2 Russia 5,686 Nevsky commercial general cargoRuno Estonia 169 Baltic service ferry, catamaranS.A. Agulhas II South Africa 12,897 STX Rauma service research, polarSanna Denmark 399 Karstensens service researchSeatruck Performance Isle of Man 19,722 FSG commercial ro-ro, chartered2

Seatruck Power Isle of Man 19,722 FSG commercial ro-roSeatruck Precision Isle of Man 19,722 FSG commercial ro-roSpasatel Karev Russia 2,632 Nevsky service salvageSpirit of France UK 47,592 STX Rauma commercial ro-paxStella Finland 812 STX Rauma service ferrySvitzer Gaia Faeroe Is. 433 Western workboat tugSvitzer Geo Denmark 433 Western workboat tugSztorm Poland 276 Remontowa service SARUlusoy-14 Turkey 31,540 FSG commercial ro-roVærøy Norway 5,695 Remontowa service ro-paxVejunas Lithuania 160 Baltic service research, catamaranVitus Bering Russia 7,100 Arctech workboat PSV, icebreaking

1 new name Eurocargo Brindisi, Italian flag2 new name Stena Performer

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Export amounted to 88% of the total GT production but this index is mislead-ing because it is shaped by Russian yards delivering all vessels to domestic owners. On the other hand, the German export rate was 100% and in the case of Poland – 99.5% (one SAR vessel for domestic service). Denmark and Finland exported about 95% of the countries’ production. All Danish domestic deliveries (two ferries and one research vessel) belong to the ‘Ser-vice’ category, in the case of Finland – it’s one coastal ferry; the second, a multirole deck cargo vessel, is ‘partly’ chartered by a government institution as a pollution re-covery support ship.

GermanyWe start our review with the leading coun-

try and the leading company, Flensburger Schiffbau-Gesellschaft (FSG) which alone keeps Baltic Germany topping the chart. in 2012, like in the period of 2009 – 2011, FSG delivered only ro-ro cargo vessels. The yard has completed a series of four ships for Seatruck Ferries delivering three units (a prototype, Seatruck Progress, was finished in 2011) and handed over Ulusoy-14 – a ro-ro vessel with the largest cargo capacity in the shipyard’s history – 4,100 lane metres. in 2013 she will be followed by two sisterships and other vessels diversify-ing FSG’s portfolio: one con-ro and two semi-submersible heavy lift vessels. Seismic research

ships are in the pipeline for 2014 accompanied by the first car-passenger ferry since 2008.

Another story is told in Stralsund and Wolgast – sadly, P+S Werften, which joined former Peene-Werft and Volkswerft in 2010, has been in a state of insolvency since Au-gust. in 2012, the company delivered just two multipurpose patrol ships for the Swed-ish coast Guard and was left with the nearly finished ferries Berlin and Copenhagen on its bookshelf, when its contract with Scandlines was discontinued. Peene-Werft will join the Lürssen Group in May 2013 but the future of former Volkswerft is still uncertain, although some parties are interested in this modern facility. A state of insolvency didn’t exclude

Fig. 1. Production of main types in Baltic shipyards 2008-2012

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some production activities – in Wolgast out-fitting works on a second pair of units for the Swedish coast Guard are in their final stages and, recently, construction of two ro-ros for DFDS was resumed in Stralsund.

Nordic Yards (former Wadan and Aker) in Rostock and Wismar was delisted in our 2012 ranking again due to a break in shipping production and will remain in this position also this year because new contracts for one offshore construction vessel and two rescue and salvage vessels are scheduled for 2014 – 2015 (total order book approx. GT 20,000).

Neptun Werft, part of the Meyer-Neptun Group, situated in Rostock, although mainly a supplier of hull parts for the main yard of the group in Papenburg, was included in the list for 2011 due to the delivery of one double-ended ferry. Now it is delisted again but its activity in the field of cruise river ves-sels is stable. The year 2012 was the best for the yard, since it started production of river cruisers in 2002 – seven units were delivered and six are in its order book for 2013.

Finlandin this country STX Rauma leads the chart

thanks to four deliveries; one – the ferry Spirit of France – was a backlog from 2011. Research vessels for South Africa and Namibia will be

handed over according to schedule and double-ender Stella seems to be ready a few months in advance because the owner, Finferries, plans to start its operation in the early spring of 2013. STX Turku was busy with cruise ferry Viking Grace and completed only one deck cargo ves-sel Meri for the domestic owner Meriaura. Both STX yards have very different prospects for the future. Turku, although it lost a contract for a third vessel of the Genesis class to the French STX shipyard, has two cruise ships for TUi in its order book, one scheduled for delivery in Spring 2014 (its construction started in No-vember 2012) and the second in 2015. On the

other hand, Rauma is building only one patrol vessel for the Finnish coast Guard which will be delivered in autumn 2013 and remains with an empty order book.

The former STX Helsinki yard returned to the ranking after a two-year break un-der the new brand Arctech Helsinki (since 2011 it has been owned 50/50 by Korean STX and Russian USc). The company sur-prised everyone by delivering its first ves-sel Vitus Bering in December 2012, four months before schedule. The icebreak-ing PSV for Sovcomflot will have one sis-tership. The order book of Arctech also


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includes one icebreaking salvage vessel made in cooperation with Yantar Ship-yard from Kaliningrad and one icebreaker built together with Vyborg Shipyard. Both vessels were ordered by the Russian Mari-time Administration. One could say that Arctech is fully clustered to the Russian, state-owned and centralised, shipbuilding industry.

Uki Workboat completed its first vessel for the Estonian coast Guard, the second is in the pipeline. Recently, the yard won a contract for an inland ferry of a new genera-tion – it will be outfitted as an oil recovery support vessel.

PolandThree Polish shipyards have added ton-

nage to the Baltic outcome. Remontowa Shipbuilding, part of the Remontowa Group, was busy with its varied ship types – it delivered four ferries for Nor-wegian domestic trade, three platform supply vessels and one SAR vessel. it is the only Baltic yard which has sold ships to Asia.

crist, a new entrant in our ranking and a new host in the largest dry dock of the late Gdynia Shipyard, delivered the large offshore construction vessel

Innovation to the wind farm industry. The company has been dealing with shipbuilding since 1990 as a hull and block factory while innovation is its first turn-key self-propelled vessel. Another ‘factory’, Marine Project, made the turn-key cargo vessel Merweriver for Dutch Bodewes Shipyards which only put its name plate on the bridge. As for the future, the 2013 list of Polish produc-tion yards could be extended, as Gdańsk Shipyard will complete an LPG carrier (GT 7,600) whose construction was sus-pended in 2009.

DenmarkBecause of the late delivery of the ro-

ro Bering Strait the closed Odense Steel Shipyard is still present in our 2012 list. Now its dry docks and cranes work for the ship repair enterprise Fayard A/S, a company which moved from Fredericia (former Fredericia Shipyard). Without OSS’s backlog, Denmark’s production would amount to just GT 4,854, due to the delivery of fishing vessels from Karstensens Shipyard and ferries from Søby. The latter is in our ranking for the first time because it has returned to the civil shipbuilding sector after 19 years of

only making patrol vessels for the naval branch of the Danish Home Guard. Nev-ertheless, one should bear in mind that both Danish yards have received all hulls (partly outfitted) from Lithuania (West-ern Baltija Shipyard), Poland (Partner Shipyard) and Russia (Vyborg Shipyard).

RussiaAdmiralty Shipyards delivered an ice-

breaking research vessel and new produc-tion facilities in Shliesselburg river yard – two cargo vessels (one cooperating with the delisted Onega Shipyard), as well as one salvage unit. Nevsky Shipbuilding-Shiprepair Plant will continue production in both classes – the order for the Neva-Leader 1 type amounted to a total of 10 ships and for salvage vessels Spasatel – to four units. Other Russian shipyards are also involved in the civilian shipbuilding sector, but remain without deliveries of turn-key seagoing vessels in 2012. Baltiys-kiy Zavod handed over four river tankers (5,000 dwt each) and is commencing work on two icebreakers – one nuclear-pow-ered for the Arctic (for delivery in 2017) and one diesel-electric for the Finnish Gulf. Even Vyborg Shipyard has started construction of hulls for two conventional

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icebreakers for domestic purposes. The ships will be delivered in 2015.

Othersin 2012, all Baltic countries had mi-

nor shipbuilding production – in Lithu-ania, Western Baltija delivered two tug-boats for Svitzer. The Swedish repair yard Tjörnvarvet handed over its first vessel after a three-year break, namely a trawler for a local owner. Estonian Baltic Work-boats completed two catamarans under licence for the Australian company in-cat crowther – one as a research ship for Lithuania and the second for a ferry link with the Estonian remote island of Runo. Although the latter vessel is classified as passenger-only (60 pax), it can carry two cars up to the dimensions of a van. The last country, Latvia, revealed turn-key ships on the naval side of the market, built however on the civilian side of the industry – Riga Shipyard delivered two patrol vessels for the Latvian Navy.

Although having so many players with such a wide spectrum of production, the BSR has nearly disappeared from the world’s shipbuilding industry. �

Marek Błuś

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I t is obvious that construction activi-ties within the offshore wind sector are more complex than they are with-in the equivalent onshore part. This is

a result of higher logistical requirements for working in such an environment. As the offshore wind industry in Europe is booming, many installation vessels are being planned, are under construction or were recently delivered.

Typically, logistic service providers prepare work assignments on high seas and they also support the wind turbine installation ships with personnel, com-ponents and tools. Thousands of mega-watts of offshore wind power are cur-

Vessels for offshore wind farms

Due to the renewable energy targets adopted by European countries, the importance of developing a wind ener-gy base, including offshore wind farms, is growing. One of the major parts of the logistic chain is specialised ves-sels for the installation of offshore wind turbines and related infrastructure such as foundations or substations.

Jacking-up the businessThere is thus a feeling of optimism and awakening in the market for offshore wind turbines.

Big ships neededFrom a shipbuilding point of view,

the offshore wind installations market is still quite small – but it is exceptionally innovative. Germanischer Lloyd (GL) as-sumes that in Europe 20 to 25 installation vessels will be needed in the short term, with demand constantly increasing until 2020. The Department of Offshore Ser-vice Vessels at GL has already classified 15 special ships for the European market. GL’s strategy of expanding its know-how

the varied operating states of these ships, generators with outputs of up to 24 mega-watts need to be installed on-board. With this size and performance, we are pushing forward into entirely new dimensions. it is expected that the demand will eventu-ally surpass the availability of installation vessels. The disproportion will be even greater because older ships may not fulfil the yet-to-come requirements, e.g. speci-fications regarding lifting capacity or ap-plied installation technology in general.

Three generationsThe design of installation vessels of

this size, and with this performance, calls

rently planned for the Baltic Sea region – an equivalent of more than one thou-sand wind turbines. Therefore, in the fu-ture, even the smaller ports of the Baltic Sea may also be developed into logistics bases for the wind energy industry, as has happened along the North Sea coast. En-gineers, technicians and skilled workers with experience in the offshore sector are (and will continue to be) in great demand.

into this field at an early stage, via its new business segments GL Garrad Hassan and GL Noble Denton, is now paying off. The challenges posed by this market segment are immense. This concerns less the indi-vidual components than, for instance, the entire jack-up leg technology. Generally, very big ships are needed, with extremely powerful cranes, a large elevating height and a high level of availability. To cover

for close interdisciplinary teamwork. Experts in shipping, offshore installa-tions, wind turbines and cranes agreed on a common terminology and specialist teams were lined up by GL. The outcome of this teamwork was the new Rules for Hull Structures of Offshore Service Ves-sels, published in 2010, which also apply to installation ships. The technological evolution of this ship type can be traced

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through the development of the European fleet with GL class, in which the well-known and well-established technologies of the offshore industry were united.

The first generation of installation ships were barges and pontoons that were used as work platforms for harbour construc-tion for the offshore industry. The Odin is a typical example of a jack-up platform which does not have its own propulsion unit and must therefore be towed to the site where the wind turbines are to be erected. Thor, another jack-up platform already fitted with a 400-tonne crane and a dynamic position-ing system, is likewise without its own drive but it belongs to the second generation. This is also true for the jack-up vessel Wind Lift 1 commissioned in 2010 – a pioneer amongst the new installation ships.

Wind Lift 1 is self-propelled and boasts a 500-tonne crane. However, the lack of a foreship gives the vessel the ap-pearance of a traditional work platform. The self-elevating vessels Victoria Mathi-as and Friedrich Ernestine, delivered in 2011 also dispense with a traditional hull shape. These ships do not actually require bows, as they are intended for constant

deployment in the construction field and need not to move at speed. Transport ships must then deliver the components. However, both ships display the progress achieved since Wind Lift 1 as their cranes can lift greater loads and the propulsive power is higher.

The third generation is much more versatile. Ships like Innovation or Pa-cific Orca and Pacific Osprey have very

powerful cranes that can lift as much as 1,200 to 1,500 tonnes. Their exceptionally large deck areas permit the transport of bulk components and also serve as assem-bly and work platforms. Because the hull has a pronounced bow and stern shape, relatively high speeds of up to 13 knots can be achieved with the vessel’s own pro-pulsion system, allowing for these vessels to be deployed flexibly for both installa-tion and transport tasks. Owing to their long hulls, Pacific Orca and Pacific Osprey are fitted with six elevating legs.

All of these designs are “conventional installation ships”, intended for use in the successive erection of wind turbines. First, the foundations – monopiles, trip-iles or jackets – are deposited in series, by means of a small jack-up vessel or a jack-up platform. Then a second vessel erects the turbine in several crane lifts – starting with the tower sections and the nacelle, then the rotor hub. The jack-up legs provide good stability for the installation platform. in good weather, approximately 20 hours per turbine are needed. Within two hours, the ship is lowered into the water, the jack-up legs

are retracted and the vessel is ready to be towed to the next installation site. The “unconventional” method, on the other hand, involves the complete assembly of the wind turbines onshore. They are then pushed, standing upright, onto the deck of an installation vessel and placed on their foundations in the wind farm field, but up until now no vessel has been launched using this installation method.

Considering the risksAt present, the wind energy industry

is waiting for delivery of the installation ships that are in the pipeline. Once the ships have been handed over, real chal-lenges will need to be faced. For instance – have the logistics experts evaluated, planned and prepared all the business processes on-board correctly? Any error in planning may have disastrous effects, leading to high costs for each day that is lost. Another question is how the jack-up technology performs in rough swell, when the pitching of the ship makes the extended legs pound against the seabed, endangering the entire structure.

Perhaps strong wind poses the great-est risk during crane operations offshore. When hoisted, the rotor blades may act as aerofoils. Hazardous situations are moni-tored by a marine warranty surveyor, who represents the interests of underwriters and fulfils an important function on-board. GL has developed its own guide-lines for marine warranties and has also acted as marine warranty surveyor for the offshore wind farm projects in the Ger-man part of the Baltic Sea.

in conclusion, even though the off-shore installations to be carried out on a larger scale in the Baltic Sea might seem rather distant at present, it is im-portant to plan ahead for these activi-ties, as they are crucial for project plau-sibility, timescales and costs. �

Łukasz SikorskiIndependent Engineering Group at GL Garrad Hassan

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VILAThe Programme is co-financed by the European Union

� What are the main goals of the VILA project and the most promising po-tential of the Vistula Lagoon?

The main aim of the VILA project is to strengthen the economic and social cooperation in the Vistula Lagoon area. This will be done through forging a long-term development strategy focused on the whole region in question, encompassing strategic goals, sustainable development rules, directions of modernizing the infrastructure as well as a public-private-partnership model suitable for using in the region – ways in which local and central politics could cooperate and encouraging the municipali-ties to play a bigger role in developing the area. Soli-tary collaboration actions across the Vistula Lagoon have been carried out for many years but the area requires something more to fully unleash its poten-tial. The region’s geographical position creates con-ditions not only for advancing tourism or so-called small border traffic, but can also contribute to mak-ing freight volumes go up as well as environmental protection easier and more efficient. A long-term strategy can significantly boost the prosperity of the local citizens, increase their mobility and secure a stable development pace.

� What is the role, tasks and research objectives of the Maritime Institute in Gdańsk within the project?

The MIG is Project Leader and its task as such is to foresee coordinating the works, promoting the initiative and realizing the project’s primary targets together with partners from Poland and Russia. Currently, the Maritime Institute in Gdańsk along with the Immanuel Kant Baltic Federal

Unleashing the potential of the Vistula Lagoon

Cooperation within the project VILA between coastal communities of the Vistula Lagoon region is directed at full realization of its economic potential as well as creating an attractive tourist-recreational complex. About the project’s objectives we talk with its Leader, Urszula Kowalczyk of the Maritime Institute in Gdańsk.

Interview with Urszula Kowalczyk of the Maritime Institute in Gdańsk, Leader of the project “Opportunities and Benefits of Joint Use of the Vistula Lagoon – VILA”

University and the Atlantic Department of the P.P. Shirshov Institute of Oceanology of the Russian Academy of Sciences are working on evaluating the natural, economic and social conditions of the Vistula Lagoon. The appraisal will help to pursue sustainable development in the region.

� What are the most important chal-lenges facing Polish-Russian cross-border cooperation and the main political barriers standing in the way of sustainable development of the entire Vistula Lagoon?

Intensifying cross-border cooperation de-pends upon the character of the border itself. There are three types of bordering regions – integrated, collaborating and isolated. Af-ter Poland’s accession to the Schengen area, the Vistula Lagoon is unfortunately the third – the isolated type. Thereby the Poland-Ka-liningrad Oblast border negatively impacts socio-economic development of both bor-dering territories. Present undertakings are therefore focused on strengthening bilateral cooperation, beginning with facilitations for the flow of people and goods. In this regard small border traffic, put into practice last year, should also encompass maritime trade. Other international initiatives easing undis-rupted traffic will also be very much wel-come. Additionally, we cannot forget about actions designed to combat local difficulties which are as important as breaking political deadlocks. In this context I mean, e.g. going through stereotypes, overcoming language barriers or changing the mindset of citizens.

� What actions are needed in the fields of transport and environmental pro-tection?

Approximately, one million people live in the nearest vicinity of the Vistula Lagoon, out of which about 70% are located on the Kaliningrad Oblast’s side and 30% in Poland. This number stands for an economic potential and it would be a shame to waste it. Therefore, a long-term strategy is necessary to point out key priorities in the areas of infrastructure and environmental protection. For instance, a unified set of protection standards would greatly contribute to lowering the pollu-tion of the Vistula Lagoon’s waters, as their con-dition today decreases both the touristic value of the region and local citizens’ standard of living.

� How do you see the future of the Vis-tula Lagoon?

All the knowledge obtained during the project will be handed over to all interested parties, as to make the best use of it. The project’s guidelines and recommendations will be further developed and implemented into real life after completion of the initiative. This will be especially valid for those solutions which facilitate the introduction of the EU’s rules concerning sustainable development of transport. All in all, the world is changing its face, presenting new opportunities of which we should take advantage. This also holds true for the Vistula Lagoon region and our joint actions cannot only make our lives easier, but can also secure the pros-perity of next generations living here.

Lena Lorenc


VILAThe Programme is co-financed by the European Union

The P.P. Shirshov Institute of Oceanology is the oldest and largest Russian research centre in the field of oceanology. The main objectives of the Institute lie in a complex study of the world’s oceans and the Russian seas based on the idea of the

entire physical, chemical, biological and geological processes observed in them, laying scientific foundations for forecasting the Earth’s climate variability, rational use of marine resources and safeguarding ecological security in the interests of mankind’s stable development.

Comprising of five research departments and one in-dependent section, MIG is an R&D Institute with over 60 years of experience, carrying out complex research projects for the Polish maritime administration and economy and performing tasks connected with the coastal situation of the country. The research prob-

lems comprise land-sea transport logistics, electronic data interchange (EDI) technologies in international maritime transport and trade, fore-casting the marine economy, sea and coastal tourism as well as prob-lems concerning the safety of ships and the marine environment.

The project “Opportunities and Benefits of Joint Use of the Vistula Lagoon – VILA” will allow for an assess-ment of economic, social and environmental condi-tions of the area, contributing to the creation of a com-mon strategy for the development of the Lagoon. The strategy could be further implemented in the region by the Polish and Russian political entities, ensuring its development and increasing its role.

T he project is implemented jointly by the Polish and Russian partners, within the framework of cross-border Cooperation Pro-gramme Lithuania-Poland-Russia 2007-2013. Its main objective is to identify opportunities to fully take advantage of the economic

and social potential of the areas located within the Vistula Lagoon region. This first-of-its-kind initiative, with a total budget of approx. EUR 1.07 mln, could also become a model for similar Lithuanian-Russian actions, regard-ing the Curonian Lagoon. VILA, led by the Maritime Institute in Gdańsk, will be implemented over two years, starting from January 2013. This ini-tiative will be realized with Russian partners: Atlantic Department of the P.P. Shirshov Institute of Oceanology of the Russian Academy of Sciences, Immanuel Kant Baltic Federal University, Administration of the City of Bal-tiysk and the Polish partner – the City Commune of Elbląg.

One of the project’s specific objectives is a joint assessment of the natural and social conditions that make a sustainable development of the Vistula Lagoon possible. Another goal is to prepare a detailed catalog of the existing infrastructure in ports and harbors as well as an overview of the infrastructure development plans in the future. All this to enhance the knowledge and bring a new approach to planning and management of ports and infrastructure in the region, which can result not only in a real increase of cargo flows in the Vistula Lagoon, but also in a closer coop-eration in the field of environmental protection. The assessment of the current state of transport cooperation and the possibility of improving the waterways will help create a cross-border forum to facilitate com-munication, solving common problems and make business contacts.

A conference opening the research project VILA, entitled “Vistula La-goon – prospects of development and use of socio-economic potential in the framework of Polish-Russian cooperation”, took place on January 14, 2013, at Marshall’s Office of Pomorskie Voivodeship in Gdańsk. The aim of the conference was to discuss the challenges of exploring the poten-tial of the Vistula Lagoon by the entities representing the Polish and Rus-sian research institutions, local governments, businesses and residents of the region. During the meeting, the participants debated on the region and its ports’ role in the Polish and the Kaliningrad Oblast’s transport sys-tems, the state of cross-border cooperation in the region and its major challenges as well as the potential and the future of the Vistula Lagoon.

The kick-off conference will be followed by various seminars on e.g. evaluation of natural and socioeconomic conditions of the La-goon; transregional teamwork between Polish and Russian part-ners and preparation of a spatial planning characteristic with de-velopment of a handbook with recommendations of water use for the Vistula Lagoon. The initiative’s action plan foresees also, among others, a study visit to Polish and Russian Baltic ports, creation of catalogues of existing port and harbour infrastructure in the La-goon as well as a roadmap for future common activities. �

Lena Lorenc

About the project LEAD PARTNER: Maritime Institute in Gdańsk (MIG)

Atlantic Branch of P.P. Shirshov Institute of Oceanology of the Russian Academy of Sciences (ABIORAS)

The Immanuel Kant Baltic Federal University was established on Oc-tober 13, 2010, on the basis of the Immanuel Kant State University of Russia by a decree of former Presi-dent of the Russian Federation,

Dmitry Medvedev. The University conducts research in fields which are pivotal to the development of science and technology in the Russian Fed-eration, such as: biosciences, rational nature management, information and communications technologies, strategic technologies (fundamental mate-rial science and nanosystems) as well as transport and space systems.

Immanuel Kant State University of Russia (IKBFU)

City of Elbląg is the basic unit of local gov-ernment, established for the organization of public life on its territory. The areas of activi-ties within the competence of the municipal-ity include: city planning, real estate manage-ment, environmental protection and nature

conservation, supporting and promoting the idea of self-government. City of Elblag is represented by the mayor. According to the Statute of the City, the mayor directs the current affairs of the City Commune of Elbląg and represents it externally.

City Commune of Elbląg (EM)

Baltiysk is a seaport town and the administrative cen-tre of the Baltiysky District of Kaliningrad Oblast. The purpose of the Administration of the city is to create comfortable living conditions for its citizens. Its role and involvement in implementing the proposed action includes, among others, providing assistance in organ-izing and holding conferences, working meetings and analyzing information on the current state of transport

– economic processes and outlooks on developing coastal tourism, elab-orating on recommendations for waterside infrastructure development.

Administration of the Municipal District of Baltiysk (AMDB)


Baltic Ports Organization initiated ‘LNG in Baltic Sea Ports’ project as a re-sponse to the IMO’s decision to establish new sulphur content limits in ma-rine fuels sailing in Emission Control Areas (covering the Baltic, the North Sea and the English Channel) from the 1st of January, 2015. Liquefied Natural Gas is perceived as one of the key solutions to meet the new requirements.

T he main aim of ‘LNG in Baltic Sea Ports’, co-financed by the EU TEN-T Multi-Annual Programme, is to foster a harmonised approach towards LNG

bunker filling infrastructure in the Baltic Sea area. Seven ports are involved in the project – Aarhus, Copenhagen-Malmö, Helsingborg, Helsinki, Stockholm, Tallinn and Turku. Each of the project partners is planning the develop-ment of port infrastructure to offer LNG bunker

Full speed ahead with LNG

Christopher NorthHead of Unit responsible for waterborne transport at the TEN-T Executive Agency

I am very pleased that the ‘LNG in Baltic Sea Ports’ project was selected for support under the 2011 TEN-T Motorways of the Seas (MoS) call for proposals. The MoS Programme seeks to address the chal-lenges faced by short sea shipping in Northern Europe in the context of the amended Annex VI of IMO MARPOL Convention and the SECA requirements entering into force on the 1st of January, 2015.The TEN-T assistance is therefore aimed, among others, at the deployment of new technologies and systems to make maritime transport more environmentally-friendly, safe and cost-effective. The TEN-T supports several new technological solutions such as LNG, scrubbers or shore-side elec-tricity for greening shipping whilst ensuring that the overall approach is holistic – so as to help bring about real network solutions – and respects the competition principles within the sector. The ‘LNG in Baltic Sea Ports’ project fits perfectly within the MoS Strategy. Building directly upon the results of a feasibility study, it targets to develop a harmonised approach to LNG bunker filling infra-structure in the BSR. The initiative should lead not only to a more standardised process of how to plan and construct the relevant infrastructure but also to investments and implementation in some key Baltic ports. It is also expected to generate wider EU benefits through its dissemination activities. Some other ports in the Baltic region, but also in the North and Mediterranean Seas, are already very interested to learn from the work carried out under this project. With no doubt, the ‘LNG in Baltic Sea Ports’ will make a significant contribution to the development of LNG bunkering systems in the EU and will be a milestone for creating an environmentally-friendly alternative for European shipping.

Dear Friends,The ‘LNG in Bal-

tic Sea Ports’ project has undertaken a re-search challenge to investigate the pos-sibilities of creating a liquefied natural gas (LNG) infrastructure in seven Baltic ports –

Aarhus, Copenhagen-Malmö, Helsingborg, Helsinki, Stockholm, Tallinn and Turku. The initiative is co-financed by the European Union in accordance with the Com-munity’s goal to diversify the energy market.

The project is also a result of the impending International Maritime Organization’s stricter regulation on sulphur content in ships’ fuel (as of January 2015). The so-called Emissions Con-trol Areas force all shipping parties to look for an alternative to bunker oil used today. Paying close attention to this issue, our main task will be to find out if LNG can become a suitable al-ternative for shipping companies in the future.

It is a great challenge for all of us who work within the project – to complete the works by the end of 2014 and hopefully be able to present a new opportunity to im-prove the air quality in Europe as well as lend a helping hand to the maritime sector.

Per-Olof Jansson, Project Leader

Monika Przedpelska-ÖströmRepresentative of the Swedish Ministry of Enterprise, Energy and Communications

As the IMO’s sulphur directive requires climate and environmentally-friendly fuels from the year 2015, from a ship owner’s point of view, there are three main possible options – a shift to marine gas oil, retrofit the vessel with a scrubber system or install engines fuelled by natural gas.From our point of view, liquefied natural gas is an interesting alternative as ships’ fuel, especially in the Emissions Control Areas. However, some practical issues must be solved before LNG is ready to be introduced on a commercial scale, like bunkering, safety, technical and operational conditions and finally – the infrastructure. Therefore, we find the ‘LNG in Baltic Sea Ports’ project important and necessary, providing the proper know-how and a base for further undertakings.

LNG in Baltic Sea Ports kicked off

About the project

stations to ship-owners in the future. The works in the ports focus on pre-investment studies such as environmental impact assess-ments, feasibility analyses for LNG terminals or bunkering vessels, project designs, regional market studies, safety manuals, etc.

The results of the studies will allow to start the physical investments in infrastructure for LNG tanking. Moreover, project works include a so-called ‘stakeholder platform’ which will

facilitate a discussion among various actors, such as port authorities, shipowners, gas infra-structure providers, energy traders and bun-kering companies. The platform will also wel-come representatives from the North Sea who will share their knowledge and views on LNG.

The project’s idea is meant to deliver both credible know-how on LNG as a ma-rine fuel and an answer to the IMO’s sulphur directive. This will also contribute to the re-alization of TEN-T Priority Area 21 (Motor-ways of the Sea) in compliance with the EU Strategy for the Baltic Sea region – a model area for clean shipping.

The initiative’s efforts will be centred in the ’LNG Guidebook’ containing best practices, recommendations and standards on how to develop effective gas infrastructure in ports. The project will end on December 31st, 2014, just one day before ECA becomes the daily bread in the region for us all. �


The authorities of Estonia’s capital port have chosen Pöyry Manage-ment Consulting to conduct a fea-sibility study and a cost-benefit analy-sis. The company

will examine the potential of setting up bunkering infrastructure for Liquefied Natural Gas in the prem-ises of Tallinn’s harbours. The study (co-financed with-in the framework of the ‘LNG in Baltic Sea Ports’ EU TEN-T project) should be completed already in April. “The main goal of the study is to evaluate the market potential of LNG as bunkering fuel in the Baltic region, the most efficient ways to provide for supply of LNG, as well as to address the questions of logistics and fea-sibility in general,” underlines Natalja Baidina, Business Manager at the Port of Tallinn.

The Baltic ferry op-erator Viking Line has put into operation its newest cruise ferry – the EUR 240 mln Viking Grace. Apart from its dual-fuel Wärtsilä en-gines, which will gener-ally operate on liquefied natural gas (something quite new on the Baltic ferry market), the ship will also feature a hydro-dynamically-optimized hull shape, designed to minimize swell waves and high-efficiency and energy-saving propul-sion machinery. Viking Grace started its sailings on the Turku-Mariehamn/Långnäs (Åland Islands)-Stockholm rotation on January 15th, 2013. The 57 thou. GT vessel is 214 m in length, 31.8 m in width and can travel at a speed of 22 knots. Viking Grace can accommodate 2,800 pas-sengers and 1,000 pax cars as well as offers 1,275 lane metres for cargo. The ship was constructed in the STX Finland shipyard in Turku.

The European Union will support with over EUR 1.2 mln a TEN-T project aimed at iden-tifying and addressing the potential barriers to the construction and operation of Liquefied Natural Gas-fuelled vessels. Specific aspects related to the manufacturing, conversion, certi-fication and operation phases of an LNG-fuelled vessel will be analysed. The whole project amounts to EUR 2.5 mln and will be carried out by Swedish and Finnish companies and organisations with the help of Det Norske Veritas Sweden lasting until the end of 2014. At the same time, the European Commission announced the LNG ports’ plan according to which proper bunkering facilities (tank trucks, barges, stations, etc.) should be set up in all 139 TEN-T core ports. The plan is targeted for completion in 2025 and would cost EUR 2.1 bln.

The industrial gas company AGA (a member of the Linde Group) will get EUR 250,000 for turning the retired ro-pax Fjalir into an LNG tank boat. The ship will be fitted with a horizontal 180 m3 Liquefied Natural Gas tank and efficient pump-less bunkering equipment. AGA’s LNG project is to be completed by December 2013. Initially, the bunker vessel is meant to supply the dual-fuel vessel Viking Grace, recently put into operation, but in the fu-ture, it may also serve other gas-powered ships.

EU TEN-T funds for an LNG bunkering boat

Delivery of Viking Grace

The Port of Tallinn launches an LNG feasibility study

LNG eventsLNG Conference 2013:

LNG in Europe and the Baltic – market and investment opportunities/Transport Week

2013Venue: Polish Baltic Philharmonic, Gdańsk, Poland

Date: 5th March 2013

Stakeholders Platform:When will LNG fuelled ships start to oper-

ate in the Baltic?/Transport Week 2013Venue: Polish Baltic Philharmonic, Gdańsk, Poland

Date: 6th March 2013

Both meetings are accompanying events during the Transport Week 2013 and refer to LNG in the Baltic Sea Ports Project. More information: [email protected].

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COPENHAGEN-MALMÖ PORT, DENMARK/SWEDENBrian Kristensen, Project’s Activity Leader

For the sake of the environmentThe new and stricter sulphur directive is already causing major perturbations throughout the shipping industry. We, at CMP, feel in the very heart of the industry, and being located at the very entrance to the Baltic Sea (a very busy gateway indeed) we do care about the environment a lot. Thus, it is a natural conse-quence for us to participate in the investigation process aimed at finding the right replacement for the currently used fossil fuels.Although we are at an early stage, we believe that joining forc-es in the ‘LNG in the Baltic Sea Ports’ partnership will be very fruitful for all parties involved. Sharing of knowledge and inves-tigation results will save us all time and money.In Copenhagen-Malmö Port we will conduct a feasibility study and its outcomes will be one of our key drivers in future discus-sions regarding how to proceed.

PORT OF AARHUS, DENMARKKim Meilstrup, Project’s Activity Leader

A bunkering entrance to the BalticWe are taking part in a study on a future energy distribution network in Baltic Sea ports in order to prepare for the future challenges in relation to cleaner air or CO2 reduction from ships. It is obvious that the ferry lines between Aarhus and oth-er ports in the Baltic Sea region are in need of clean fuel bun-kering from 2015. Nonetheless, further investigations and spe-cific designs are required, since we cannot forget also about container ships, pure ro-ro lines and bulk vessels. Our participation in the project is divided into three phases: conducting a feasibility study along with a market analysis upon transport opportunities; preparing documents for ap-proval from the authorities (covering ecology, safety and se-curity issues); and finally – carrying out proper design works, drawing out the station’s layout, and its installation in the port. Within the ‘LNG Baltic Sea Ports’ we are looking forward to co-operation with other ports, since sharing knowledge and mu-tual support can substantially speed things up.

PORT OF HELSINKI, FINLANDJukka Kallio, Project’s Activity Leader

Towards viable and safe operations near the cityLNG is naturally an issue which builds up emotions. It is impor-tant, however, to steer clear from going to extremes and be-coming either a hothead enthusiast or a sceptic impervious to all arguments. I personally believe in LNG, but only to a certain extent. Converting a few year old vessels is expensive, as some examples show. In this context, I see the need for supporting the conversions. On the other hand, Viking Line’s newbuilding Viking Grace (as well as other LNG ferries to come) will provide essential data about the whole LNG idea in the Baltic Sea.Within the project, the Port of Helsinki will conduct a feasibility study and all the possible investments depend on the results of this analysis. One of the most vital facts which we must bear in mind is that ports are located close to city centres. Consequent-ly, it is necessary to find out if bunkering is even possible due to safety or technical details, afterwards – what is the best tanking model, and finally – what conditions must be met to establish viable and safe LNG operations.

PORT OF HELSINGBORG, SWEDENRoland Brodin, Project’s Activity Leader

LBG & LNG for the local marketToday, 50 thousands ships pass nearby the Port of Helsingborg and 3 million lorries go through the city annually. The local con-ditions in the port area are well suited for a specialized terminal which will bunker LNG in the Øresund region in the future.The Port of Helsingborg has formed a project named HELGA to-gether with important local stakeholders – Öresundskraft, Nor-dvästra Skånes Renhållning (NSR) and Kemira – as well as two associations – Ports of Sweden and the Swedish Gas Association. The main aim of the project is to establish an LNG solution that will strengthen the competiveness of the region, be a part of a harmonized bunker filling infrastructure as well as contribute to solving the air pollution problems within City of Helsingborg. NSR will set up a liquefied bio gas (LBG) plant which will be the first step in introducing both LBG and LNG to the local market and to the shipping industry.The project is investigating the possible market volumes. The intention is to deliver LNG to ships, heavy vehicles, industries, green houses, etc. Sourcing is another important issue that will be carefully studied. Priority will be given to working together with other stakeholders and making strategic alliances which will ensure attractive LNG pricing. In the end, the market vol-umes along with expected competitiveness will act as the main driving factors deciding a terminal’s capacity.HELGA and other parties from the ‘LNG in Baltic Sea Ports’ project will cooperate to find commercial, technical and envi-ronmental tools to establish a harmonized bunker filling infra-structure in the Baltic Sea region. Together, we can approach important stakeholders and discover solutions from which we can all benefit.

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PORTS OF STOCKHOLM, SWEDENSandra Gegerfelt, Project’s Activity Leader

Not only for Viking GraceThe Ports of Stockholm are proud to be a part of the flagship project where Viking Line’s new LNG-fuelled ferry Viking Grace starts its service in 2013, when we will be the first port in the Baltic providing LNG bunkering. Yet, we must study how to se-cure the bunkering issue in a long-term perspective and this is where ‘LNG in Baltic Sea Ports’ plays a major role for us. Thus, we believe the project will provide important input to our in-vestment plans in LNG. As for the project itself, it is an important element in the devel-opment of LNG use in the Baltic Sea. The cooperation between ports can create synergies where acquired knowledge and ex-perience can be spread to other parts of the EU.

Disclaimer: “The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein.”

PORT OF TALLINN, ESTONIARiina Palu, Project’s Activity Leader

Gas terminal(s) in MuugaThe Port of Tallinn has set a goal to penetrate the LNG/LPG logistics market in 2010-2015 by creating a suitable environ-ment for the construction of gas terminals and thus building the base for energy independence of the Republic of Estonia.In May 2012, the Port of Tallinn and Elering (the Estonian energy transmission system operator) chose Vopak LNG as a strategic partner for the development of an LNG terminal in Muuga Har-bour. The first phase of the project foresees a feasibility study covering technical parameters of the terminal, costs of its con-struction and options for gaining/utilizing EU funds.The Port of Tallinn envisages construction of a gas terminal (or terminals) into the eastern part of Muuga Harbour. Trans-shipment operations could be performed on existing Quay No. 33 or – if necessary – a new berth which can be built to the breakwater extension. The concept of the terminal will cover the following areas: security of supply (in the form of long-term capacity reservations for the country’s transmission system op-erators); commercial capacity for the interested gas shippers operating in Estonia, Latvia, Lithuania and in Finland; servicing the off-grid market in Estonia (hereunder district heating plants not connected to the network supplied via trucks) as well as refuelling LNG-driven ships via reloading facilities for bunker barges, which could then bring their cargo to the port in Tal-linn, other locations in Estonia, or along the Finnish and Swed-ish coasts.We believe that building the LNG terminal in Muuga will sig-nificantly contribute to a cleaner environment in the Baltic Sea. The Port of Tallinn wishes to set up working groups in order to support Estonia’s strategic goals for both energy security and for the sake of the Baltic Sea region’s ecosystem.

PORT OF TURKU, FINLANDMarkku Alahäme, Project’s Activity Leader

LNG import terminal in PansioLNG is a clean fuel, which can substitute oil-based energy sources in maritime transport and in the industry, thus reducing emissions caused by them. I personally see this as the future of the both mentioned sectors – namely LNG getting the upper hand. Therefore, it is of national interest that Finnish ports will have a network necessary for importing and distributing LNG. Gasum and the Port of Turku are on the forefront in building the LNG infrastructure in Finland. On the 21st of May, 2012, the two parties signed a letter of intent to construct an LNG import terminal in Pansio Harbour. The agreement levelled the project to the next stage and City of Turku has started to prepare an al-teration of land use planning for the harbour area. As a result, it is possible to set up the LNG terminal operations including a stor-age tank of about 30,000 m3 in Turku port. From Pansio LNG can be transmitted to the port itself by bunker vessels or tank trucks. Besides, it is also no problem to construct a pipeline network for transmitting LNG from the terminal to industrial facilities. Gasum will continue the technical planning of the terminal, while Port of Turku has started studies related to land use planning. The delivery of liquefied natural gas from the terminal could start al-ready during year 2015. The LNG investment will total approx. EUR 60 mln. Our port wishes also to make an outline concerned with LNG bunkering arrangements as well as produce a safety manual for tanking up issues and use of LNG in the port areas. We expect that sharing knowledge and findings related to LNG projects in several ports will lead to a fruitful outlook of best practices regard-ing LNG – be it terminals, bunkering and safety matters.

PROJECT INFO

Project Leader: Per Olof JanssonChairman of the Steering GroupPort of Helsingborg (SE)

Project Manager: Emil ArolskiBusiness Development ManagerActia Forum Ltd. (PL)

Partners: Port of Aarhus (DK),Copenhagen-Malmö Port (DK/SE),Port of Helsingborg (SE),Port of Helsinki (FI),Ports of Stockholm (SE),Port of Tallinn (EE),Port of Turku (FI)

Budget: EUR 3,394,040

EU grant: EUR 1,697,020

Timetable: January 2012-December 2014

FOR MORE INFORMATION, CONTACT:Emil ArolskiLNG in Baltic Sea Ports Project ManagerActia Forum Ltd.Phone: +48 58 627 21 85E-mail: [email protected]

www.lnginbalticseaports.com


BPO Environmental Working Group consists of 6 members representing following ports: Copenhagen-Malmo, Stockholm, Tallinn, Helsinki, Turku and Rostock. The first meeting of the BPO EWG took place on 8th September 2010 in Tallinn. The main task for the Work-ing Group is to follow the regulatory devel-opment that affects the port business, es-pecially those related to HELCOM activities. Among many topics, emissions of SOx, NOx from shipping and port reception for sewage from passenger ships are the most important.

� The BPO Environmental Working Group is a platform for co-operation between ports in order to find solutions to environmental problems associated with port activities. What is the EWG dealing with at the moment?

BPO-EWG is at present monitoring and taking part in HELcOM’s initiative aimed at providing adequate port reception facili-ties, so cruise ships in the SEcA areas can deliver all their sewage in ports instead of discharging it at sea. Furthermore, the EWG is monitoring how the shipping industry will handle the new iMO regulation con-cerning the reduction of sulphur in ships’ fuel as well as the NOx regulation.

� What are, in your opinion, the main en-vironmental problems occurring in Baltic ports? What kind of issues will the ports need to face over the next few years?

Waste handling will always be a big issue in the Baltic (and also among ports), though the shipping industry is responsible for only a mi-nor percentage of wastewater pollution across the Baltic Sea. This issue is very visible for politicians and the public, too. Furthermore, dredging, noise and obtaining environmental permits necessary for port development are among the main issues for most of the ports.

� How do you see the future development of environmental protection measures by the Baltic countries?

Various HELcOM initiatives will be among the main measures, but let’s not forget about various projects with regard to alter-native fuelling and emission reduction from ships. it may also imply new waste types to be handled in the ports (from scrubbers) and investment in new storage and loading/discharging facilities for new fuel types.

Closer to the environment

Ports across the Baltic Sea region are struggling with many eco-is-sues, starting with the International Maritime Organization’s stricter SOx and NOx regulations, through ballast and wastewater manage-ment, to simply trying to be more pro-active as the right thing to do. We talk with Gert Nørgaard, Manager Strategy & Planning at Copen-hagen Malmö Port and Chairman of the BPO Environmental Working Group (EWG), about current and future eco-challenges.

Interview with Gert Nørgaard of CMP, Chairman of the BPO Environmental Working Group

� The Baltic Sea was designated by HEL-COM as a Nitrogen-Oxides (NOx) Emission Control Area (NECA) on ship emissions. What does that mean for the ports? What technology is available to meet NECA requirements by ships?

The NEcA is mainly an issue when we walk about the need for ships to adapt their en-gine technology, however, higher invest-ment and transport costs may mean laying down certain shipping activities as well as trigger a fall back to land-based transport. The case of alternative fuelling is highly un-certain for the shipping industry and for ports as well. Making a wrong decision may be catastrophic for a single company.

� What do you think about the Ballast Water Management Convention? How can ports help in fighting off dangerous and destructive invasive species?

in our opinion, technology should be devel-oped so invasive species can be dealt with at sea. Several technologies are under development and the process ought to be speeded up. Ports may have to establish tank facilities within their premises, but this solution is not the best way because it delays the shipping activities and this way would be more costly in the long run.

� Will cold-ironing become a common solution utilized across the Baltic Sea ports? What are the pros and cons of setting up such installations?

cold ironing is a good solution locally but only cost-efficient for frequent traffic, such as ferries, ro-ro and perhaps short-sea vessels in regular traffic between low numbers of ports. Further-more, cold ironing does not work while a ship operates at sea, which most often is more than 85-90% of its working time. installations are ex-pensive and very expensive when a frequency

converter is needed. Also, not all countries have removed duties on the sale of electricity to ships in international service.

� What can ports do to help shipping com-panies to prepare for the stricter sulphur regulations? Is paying shipping com-panies money in return for using low-sulphur fuel within a port’s area a good stimulus? Or will this only convince the convinced?

i am afraid that ports need to run as com-mercial entities and paying shipping compa-nies is not an option. Ports can assist shipping companies in becoming more cost-efficient in their performance and through this contrib-ute to holding the costs down. The Swedish government and Swedish ports introduced a reduced fee for ships using low sulphur fuel some time ago, but this initiative is not directly adaptable to other countries because they use different systems to cover costs for maintain-ing fairways. All modes of transport must cover their own costs they lay upon the envi-ronment. This is the fairest way to improve the environment across all transport businesses.

Przemysław Myszka


BALTIC PORTS ORGANIZATION • Secretariat Office – Actia Forum Ltd.ul. Pułaskiego 8, 81-368 Gdynia, POLAND, ph.: +48 58 627 24 67, fax: +48 58 627 24 27, e-mail: [email protected], [email protected], www.bpoports.com

Port Environmental Management – demonstrating your licence to operateA growing number of stakeholders throughout the port area, city and the logistics chain seek evidence of a port authority’s performance in terms of compliance with legislation, sustain-able development and condition of the environment.By the same token, government de-partments, investors and senior man-

agers increasingly require proof of cost- and risk-reduction as well as of more efficient use of resources.A useful tool for Port Environmental Managers is EcoPorts’ ‘Self-Diagnosis Methodology’ (SDM). This user-friendly checklist of key components of an Environmental Management System (EMS) was developed by port professionals for port professionals. SDM has been used widely throughout the sector for fifteen years and it forms the basis of the European Sea Ports Organization’s (ESPO/EcoPorts) database of environmental performance.Use of the Self-Diagnosis Method is in this instance free of charge. It takes less than two hours to complete. You first need to register information about your port and then continue to fill in the SDM on-line (Yes/No questions). There is no pass or fail. The responses are summarized anonymously and in confidence. A Memorandum of Understanding to this effect has been in place since 1996 be-tween ESPO and its members. Your participation will be acknowl-edged on EcoPorts’ website as an ‘EcoPort’.The SDM is useful for all ports even if you are already using other management tools to monitor and manage the environmental performance of the port. Use of the SDM assists your port in estab-lishing strengths, weaknesses, opportunities and threats concern-ing so-called Environmental Management. Members of the Baltic Ports Organization can assess their own progress and receive a benchmark performance for the whole sector. Use of the SDM serves as an annual review, generates data and informa-tion for reporting, assists in establishing a level playing field within the sector, and most significantly, it is a strong signal of intent and capability to the European Commission that the port sector is capable and com-petent to deliver compliance on the basis of voluntary self-regulation.The SDM can be accessed on-line via www.ecoports.com. Follow the in-structions under ‘Join Now – Join the network’. If there are any problems in filling in the SDM, do not hesitate to contact the Science Coordinator, Dr. Chris Wooldridge, via his e-mail address: [email protected].

Gun Rudeberg

Chairman of the ESPO Sustainable Development Committee& Ports of Stockholm’s General Counsel and Head of Environmental Affairs

Self Diagnosis Method

In recent years, the awareness of eco-issues’ importance has been steadily rising. Ports, as a business sector, have also put pressure on the environment. The goal is to keep the negative impact as low as possible. How can a port make its contribution in this matter? The Self Diagnosis Method (SDM) can be the first step.

Ports are indeed complex structures. They can be found in differ-ent sorts and types, handling a whole palette of goods in various geographical and weather conditions for the benefit of consum-ers. Nonetheless, ports are a significant source of pollution as

well – starting with noise, through harmful particles, dust, soil contami-nation, to waste & ballast waters. Ports are also primarily situated near ur-ban centres, thereby posing a serious health risk if something goes wrong.

SDM has been designed to serve as the first step in a port’s eco-path. it is a methodology to assess the quality of environmental management in seaports. Thanks to SDM, people who are not experts can find out in cou-ple of hours: the characteristics of a given port’s environmental context and management, periodically self-evaluate the port’s eco-improvement, check compliance with environmental legislation, compare their port’s performance against a European benchmark, carry out a SWOT analysis, identify business risks and, last but not least – motivate the port authority to improve its performance or pursue higher levels of eco-management.

The Self Diagnosis Method was developed because more advanced methodologies (iSO 14001, Eco-Management and Audit Scheme and ESPO’s Port Environmental Review System) require a certain dose of know-how and are by no means suitable for rookies. Nonetheless, SDM was created in accordance with the abovementioned standards so it’s easier to fathom them after becoming familiar with SDM.

The Self Diagnosis Method consists of two sections (questionnaires) – the ‘Port Profile’ and ‘Environmental Management and Procedures’. The first aims at identifying a port’s main features such as legal status, port operators, location, cargo and passenger traffic and commercial activities. The latter section focuses on eight factors: environmental policy, management organization and personnel, environmental train-ing, communication, operational management, emergency planning, monitoring and records as well as review and audit.

After completion, the port disposes a set of outcomes as a starting point. The port authority sees its current eco-performance and, by completing subsequent SDM studies, can compare its activities over a period of time – be it an internal comparison or with other ports. SDM also provides good material for a gap analysis which points out necessary undertakings to meet the abovementioned international standards (such as e.g. iSO). Other benefits stem from conducting a SWOT analysis as well as from gaining feedback on environmental business risks, conformity with legal regulations, not to mention in-creasing eco-awareness among the port’s decision makers.

The Self Diagnosis Method has one more story to tell. it is a voluntary tool and so far nobody is pushing anybody to use it. This may change over time as the proper market develops and starts to put pressure on port authorities. But before that, somebody must shape the market and filling out the SDM can be a first step in achieving that. �

Przemysław Myszka

The first step

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These numbers really do impress, especially if you consider that they only take into account cruise liner traffic (not tak-ing into account short cruises and cruises by ferries). Hav-ing said that, the data reflect the trends seen in overall traf-

fic – the ports that were considered the most successful in 2011 (i.e. attracting the most visitors) remained so in 2012 and will continue their streak in 2013, as you can clearly see in Tables 1 and 2.

Tab. 1. Top 10 cruise destinations in the Baltic Sea in 2012

No. Country Port Passengers [thou.]

Yoy change [%]

CallsYoy change [%]

1 DK Copenhagen 830 1 377 2

2 RU St. Petersburg* 500 6 305 1

3 SE Stockholm 470 4 275 54 EE Tallinn 441 0 294 05 FI Helsinki 366 -5 265 36 DE Kiel 348 -8 137 147 DE Rostock 300 16 181 158 PL Gdynia 106 36 69 239 LV Riga 83 30 92 3310 SE Gothenburg 81 31 69 33

Total 3,525 3.5 2,064 6.1

Remarks: In turnaround ports the sums comprise of passengers on stopovers, embarked and

disembarked.* Data for St. Petersburg as estimated by Cruise Baltic; others according to the latest, but

often preliminary figures revealed by ports.

Despite the global economic slowdown, it looks as though in 2013 the Baltic Sea region will remain a desired destination among tourists, with more than 600,000 estimated unique1 passengers, embarking on the Baltic cruises alone, and more than 70 ships operated by 42 companies making over 400 round trips.

Although the figures are preliminary and by no means complete, it seems that the annual growth rates of 3.5% for passenger num-bers and 6% for call numbers will not change. Nevertheless, they are smaller than expected at the beginning of the year; cruise Baltic – the organisation of Baltic destination ports – forecasted 5.8% and 9.5%, respectively. On the other hand, all total figures for the main northern destinations (Helsinki, St. Petersburg, Stockholm and Tal-linn) are lower than they are in reality, due to a traditional method of counting that obscures the phenomenon of the new and expand-ing Russian cruise market. The Gulf of Finland is served round year by a vessel registered formally as a ferry, adding about 90,000 real cruise passengers in aforementioned ports’ results.

Baltic cruise traffic

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A closer look at the upcoming cruise season

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Our 2013 program promises to be an exciting, newly redeveloped event, offering our guests 360 degrees of ground-breaking content based on industry feedback.

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1 That is counting each passenger only once, regardless of how many ports he/she has visited.

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Tab. 2. Calls to the 15 most visited cruise ports in the Baltic Sea

No. Country Port 2011 2012 20131 DK Copenhagen 368 377 3302 RU St. Petersburg 309 305 3113 SE Stockholm 263 275 2614 EE Tallinn 293 294 3305 FI Helsinki 258 265 2576 DE Kiel 120 137 1277 DE Rostock 158 181 1978 PL Gdynia 56 69 649 LV Riga 69 92 7210 SE Gothenburg 52 69 N/a11 SE Visby 53 74 6112 LT Klaipėda 36 43 4413 DK Rønne 25 50 3714 PL Gdańsk 21 29 3215 DE Mariehamn 24 21 27

Destination BalticThe first five ports from both lists (St. Petersburg, Tallinn, Hel-

sinki, copenhagen and Stockholm) are stalwart highlights of any cruise originating both in the BSR as well as some foreign port. in fact the most popular Baltic route offered by almost every opera-tor goes like this: copenhagen, Warnemünde, Tallinn, St. Peters-burg, Helsinki, Stockholm, with very little variation (mostly adding one small or medium BSR port or a European one outside the BSR, which is also likely to be a turnaround port and not a destination).

it is no surprise as the major reason for the Baltic Sea being an at-tractive cruise destination is the fact that it is the sole region in north-ern Europe with six capital cities situated on the coasts and within overnight sailing distances. A special note has to be made regarding Warnemünde (Rostock); the popularity of this port comes from its relative proximity to the German capital of Berlin. This is one of those universal constants: people have been flocking to these major cities in the past and it seems they will continue to do so in the coming year as well. Their attractiveness stems from a combination of several fac-tors, but mainly derives from their historical significance (they are full of momentous sites and landmarks, many of which were put on the World Heritage list) as well as shopping opportunities.

Of course, it is not all about these heavy-hitters. The middle tier, Kiel (thanks to its role as a turnaround port), Riga, Klaipėda and the Tricity area (Gdańsk-Sopot-Gdynia), is expecting a steady stream of visitors – these cities benefit from being located on the main route from copenhagen to St. Petersburg. As inland excursions (like the aforementioned trips from Rostock to Berlin) during cruises be-come more common; Gdańsk and Gdynia will profit from one-day tours taken by liner passengers to the 13th century city of Malbork, known for its Gothic Malbork castle.

it is a welcomed boost, as those smaller harbours face a rising challenge posed by technology itself. cruise ships are getting bigger and their routes are highly standardized. This is a trend that has gained traction over the years – the difference between the costs of seeing the “old” and “new horizons” is still getting wider. This means that smaller ports, which at the turn of the century were prophesized to come into the forefront, have become luxurious des-tinations. Some, like Luleå and Kemi, depend on inland excursions (to the Gammelstad church Village, Lapland and the Polar circle) for their traffic, others seem to be doing fine, although a bit erratic – take Saaremaa, for example. An Estonian port opened in 2006, it had two calls in 2010, but now expects seven times as many.


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The only medium ports that seem to be on the verge of “break-ing into” the mainstream (or have in fact done so in the past couple of years) are Visby, Rønne and Gothenburg.

All in all, if some form of force majeure does not intervene, there will be over 2,500 cruise calls to Baltic ports from cruise liners alone in 2013.

Inner seaThe interesting thing about Baltic cruising comes from studying a

different set of statistics – namely the list of turnaround ports serving the BSR routes in 2013. As you can see in Table 3 “cruise turnaround ports in the BSR”, most of the same ports from the previous table show up, although only copenhagen, Stockholm and Warnemünde

(Rostock) put in decent numbers. The number one spot does not surprise; copenhagen is a gateway port to both the Baltic Sea and Norwegian Fjords and as such sees the majority of turnaround traf-fic (Tab. 3. excludes turnaround calls for Norwegian destinations). it also becomes apparently clear that some of the largest ports in the BSR, serviced by cruise liners (specifically Helsinki, Tallinn and St. Petersburg), are strictly on the receiving end of the traffic and they are almost never ports of origin for cruises themselves.

Also of note is the high position of Kiel, which over the past few years has seen a dramatic increase in the number of passengers and calls mainly due to its perfect location as a turnaround port for the Ger-man market. Another phenomenon of the Baltic cruises is the large total number of outside turnaround ports although most passengers embark or disembark in the nine BSR ports mentioned in Tab. 3.

Tab. 3. Cruise turnaround ports in the BSR in 2013

No. Port Calls (turnaround)1 Copenhagen 1252 Kiel 893 Rostock 874 Stockholm 655 Hamburg 326 Travemünde 117 Malmö 108 Helsinki 69 Tallinn 610 St. Petersburg 1

Remark: Figures are based mostly on itineraries published on operators’ websites.

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Hamburg is included due to its importance and proximity, but the other 23 outside ports (of which 14 are in the United Kingdom), are excluded; still, it is worth mentioning that a little over 1/6 of all passengers heading into the Baltic Sea come from British ports of which Southampton and Dover are the most important.

in nine out of all 24 outside ports only one embarkation or dis-embarkation for the BSR market takes place. This is due to the na-ture of those ports, as they serve as junction points, offering several main destinations in addition to the BSR, for example while head-ing for the Mediterranean (like Bilbao and Lisbon).

OperatorsThere are more than 40 cruise line operators in the BSR, but the

15 largest are responsible for over 85% of all traffic.

Tab. 4. Top 15 cruise line operators in the BSR

No. Operator CruisesDays on the Baltic Sea

Ports of call

Estimated pax [thou.]

1 Aida Cruises 48 385 218 1202 MSC Cruises 22 151 86 683 Costa Cruises 17 129 85 50

4 Royal Caribbean International 20 199 111 46

5 Princess Cruises 13 149 104 396 Norwegian Cruise Line 15 135 75 357 Celebrity X Cruises 12 154 77 288 Holland America Line 15 214 93 239 Fred Olsen Cruise Lines 20 252 100 2110 Pullmantur 10 70 50 1911 Carnival Cruise Lines 8 96 48 1712 P&O Cruises 10 158 77 1713 TUI Cruises 7 51 36 1614 Cunard 8 90 45 1615 Oceania Cruises 10 120 83 12

Total 235 2,347 1,284 523

Remark: Figures are based on itineraries published on operators’ websites; deviances from other

sources stem mostly from different settings of the BSR’s boundaries (i.e. some operators include destinations in southern Norway).

A separate entry needs to be devoted to a selected group of cruise op-erators which offers a different kind of service. As smaller ports are con-sidered more luxurious, the lesser companies try to capitalise on this trend of “small = deluxe” as well. The likes of Zegrahm Expeditions, Windstar cruises and Star clippers cater to a specific, affluent demographic, which demands something extra. For example, the vessels (clippers) used by Star clippers are modelled after old sailing ships and are relatively small – compared to some of the cruise liner behemoths – offering a quiet, more natural way of voyaging. On the other hand, Zegrahm Expeditions boasts a fleet of Zodiacs – small aircraft – that the passengers of its ships can use to reach “remote landings anywhere nature or curiosity dictates”.

One should bear in mind two extremes of the Baltic cruise market that are obscuring the whole picture. On one end of the spectrum we have trips from St. Petersburg to neighbouring capitals that are taken into account in the statistics for the ferry market, although they are similar to cruises from Florida to the Bahamas or from cyprus to the surrounding destina-tions. On the other we have cruising that takes place completely outside the mass cruise market, for example on luxury, chartered yachts, ‘floating universities’, or on sailing vessels registered as training or historic ships. What we monitor here is the just the tip, albeit still growing, of the iceberg. �

Tab. 5. Cruise line operators in the BSR by number of ships

No. Operator Ships1 Fred Olsen Cruise Lines 42 Holland America Line 43 P&O Cruises 44 Aida Cruises 35 Costa Cruises 36 Cunard 37 Hapag-Lloyd Lines 38 MSC Cruises 39 Phoenix Reisen GmbH 310 Royal Caribbean International 311 Azamara Cruises 212 Celebrity X Cruises 213 Cruise & Maritime Voyages 214 Crystal Cruises 215 Noble Caledonia 216 Oceania Cruises 217 Princess Cruises 218 Saga Cruises 219 Seabourn Cruise Line Ltd. 220 Voyages of Discovery 221 Birka Cruises 122 Carnival Cruise Lines 123 Compagnie du Ponant Yacht Cruises 124 Hansa Touristik 125 Iberocruceros 126 Kristina Cruises 127 Lindblad Expeditions (NG) 128 Norwegian Cruise Line 129 Passat Kreuzfahrten 130 Peter Deilmann Cruises 131 Plantours Kreuzfahrten 132 Pullmantur 133 Regent Seven Seas Cruises 134 Silversea Cruises 135 Star Clippers 136 Spirit of Adventure 137 Swan Hellenic Discovery Cruising 138 Thomson Cruises 139 TransOcean Kreuzfahrten 140 TUI Cruises 141 Windstar Cruises 142 Zegrahm & Eco Expeditions 1

Marcin Wełnicki

Focus


Overland

Rocket. Not surprisingly, the effect has been a catastrophic decrease in rail freight’s mar-ket share. in 2001, 33% of all freight carried went by rail, by 2011 rail freight’s market share had dwindled to 18%. While total freight carried in the 10 years 2001-11 in-creased by 105%, the amount carried by rail only increased by 8%. intermodal freight, a booming business in the rest of Europe, re-mains a niche market in Poland. Rail’s share of this fledgling market is 3.9%, one tenth of that of Belgium and one quarter of the EU average (Tab. 3).

Tab. 1. Railtrack access charges in Poland and selected countries (EUR/train-km)

Source: DBS

Tab. 2. Railway infrastructure quality in Poland and selected countries

Source: World Economic Forum Global Competitiveness Report 2010-11

The potential for rail freight is huge. Poland is a major producer and im-porter of bulk products such as coal and aggregates, which are ideally

suited for rail transport, and a new genera-tion of rail-connected container terminals in Szczecin, Gdynia and Gdańsk are offering lo-gistics companies faster turnarounds and more cost-effective service than ports further east.

The first freight train from Beijing ar-rived in Lódź in January 2013 taking just 14 days, i.e. 31 days less than it would take to move the high-value electrical goods by sea. in November 2011, DB Schenker start-ed running a weekly service of European loading-gauge trains between Wrocław and London. A year later, a second train was in-troduced. So by all accounts, Poland’s rail-ways should be a huge success story.

Lack of trust perpetuates a ‘command and control’ culture

Sadly, the reality could not be more dif-ferent. While many large cities in Europe have already experienced ‘peak car’ effects and in some countries, such as Great Britain, rail passenger numbers are booming as never before, Poles are deserting their rail passen-ger services in droves. it is not difficult to see why. While a few stations such as Warszawa centralna and Wrocław Główny have been subject to admirable makeovers, and Poznań and Katowice have received completely new stations, the majority of Polish railway sta-tions are dirty and dangerous. Few make any concessions to the needs of the elderly or the disabled and dozens are deserted and left to the depredations of hooligans. According to EU-commissioned customer satisfaction surveys, Poles are amongst the most dissatis-fied railway passengers in Europe.

Poland’s rail freight sector is also in a desperate state, with crippling track access charges and a decaying infrastructure little better than that of Romania (Tab. 1 & 2). Freight trains creep along at average speeds more appropriate to the time of Stephenson’s

Poland – Europe’s railway capital?

But the problems of Poland’s railways are not just down to dirty stations and worn-out track. Lack of trust between senior managers and staff perpetuates a ‘command and con-trol’ culture and inflexible working practices which date back to the days when Poland’s railways were an integral part of the Warsaw Pact military machine. insufficient infor-mation flows upwards to senior managers. Board members find it easier to hire consult-ants to find out what is happening on their trains than to ask their employees.

customer-facing staff lack the empow-erment to put things right and so passengers get a raw deal. Train managers and their as-sistants are articulate and polite when eve-rything is running to plan, but when things go wrong, such as when a locomotive breaks down, or a train fails to run altogether, and a little imagination and flair is needed to assist angry passengers, they have a way of melting into the shadows.

it is not all doom and gloom. A new generation of customer-focused train oper-ating companies such as cTL Logistics, DB Schenker, Freightliner PL and Rail Polska have entered the freight market, bringing with them new thinking and new locomo-tives. Although they do find themselves fighting the cause of rail freight with one hand tied behind their backs.

Key infrastructure facilities including ac-cess tracks, sidings, terminals and tranship-ment facilities, which according to the EU’s 1st Railway Package should be available to all on a non-discriminatory basis, have been allocated on long-term lease by the infrastructure man-ager, PKP PLK, to PKP’s own freight operator, PKP cargo. Track access charges favour the less powerful locomotive/short train opera-tions of PKP cargo rather than the more en-ergy efficient, modern locomotive/long train operations of the new entrants.

Everybody picks up the billPoland’s railways have become the cin-

derella of Europe and the neglect of the

From bad to worse to… better?If only it were a question of geography, Poland would be the railway capital of Europe. There are direct cross-border rail connections to Germany, the Czech and Slovak republics, Ukraine, Belarus, Lithuania and Russia (Kaliningrad). Long-distance rail corridors such as Moscow to Berlin, Helsinki to Rome and Kiev to London cross the country. Most of the landscape is a flat sandy plain, the ideal geology for the new generation of high-speed railways which are gradually bringing Europe closer together. A high-speed rail journey from Warsaw to Berlin could take as little as two hours, making the rival air route redundant.

Overland


Tab. 4. Railway vs. road investments in Poland

Source: Poland’s Ministry of Transport, General Directo-rate for National Roads and Motorways, PKP PLK

railway network affects everyone. Slow and unreliable commuter trains affect worker productivity. Lack of information about cross-country train services and poor tick-eting arrangements affect tourism. During last summer’s Euro 2012 football champi-onships there was a flood of enquiries about Poland’s train services on internet forums such as TripAdvisor. Polish fans answered with one voice: “Go by bus, go by plane, go any way you like, but don’t go by train.” Not so long ago, newspaper headlines screamed that PKP intercity passengers were being bitten by bed bugs…

Road accidents are amongst the high-est in Europe. Fatalities on Polish roads per million inhabitants are three times higher than in the UK. Heavy, poorly maintained, long-distance lorries creep-ing through Polish towns belching car-cinogens contribute to the incidence of lung disease and cancer and drive up health-care costs. Paradoxically, perhaps the worst affected is the ordinary mo-torist whose car is prematurely aged by travelling on pot-holed roads damaged by excessive lorry traffic. Few people understand that the damage caused to a road surface varies as the fourth power of the axle weight passing over it and that every tax payer subsidises the ‘track ac-cess charges’ of the HGVs operated by the road haulage companies. Everybody in Poland picks up the bill for the neglect of the country’s railways.

Nothing in Poland is ever simpleThe solution would appear to be simple

– to allocate a greater share of the national budget to railway infrastructure investment and maintenance (Tab. 4) and to reduce track access charges to average EU levels.

But nothing in Poland is ever simple. Prior to its entry to the EU in 2004, Poland was already subject to the tight fiscal tar-gets and external supervision entailed in an international Monetary Fund adjustment

programme. Dubbed the ‘Balcerowicz Plan’, this not only entailed a tight squeeze on government spending but also set spe-cific targets regarding issues such as the number of employees employed on Polish state railways. A strategic agreement was drawn up with the World Bank whereby the Polish railway system would be divorced

services are concerned should be subject to free competition.

The World Bank and EU requirements for the management of Poland’s railways do not sit easily together. The result of both of these frameworks applied simul-taneously did not accelerate the reform process of Poland’s railways, but rather the reverse. Any serious attempt by the Min-istry of Finance to provide financial sup-port to Poland’s railways has the potential to threaten the credibility of the PLN and damage the economy as a whole.

Needed out-of-box thinkingSo if things are going to get better we

urgently need some out-of-box thinking. if there is insufficient state capital to make the most of the EU assistance that is on the table, then maybe private capital can do some of the job? How about long-term franchising of certain passenger services in return for the franchisee putting up some of the capital necessary to cover the ‘own funds’ costs of an EU infrastructure project.

in Great Britain, Deutsche Bahn-owned chiltern Rail-ways are meeting the costs of ‘Project Evergreen’ which has increased capacity and speed-ed up services on the former Great Western Railway route to Birmingham and is now constructing a new link to Oxford. Heavily-used pas-senger lines such as Radom to Warsaw would seem to be ideal for such treatment.

Would Polish rail freight operators be sim-ilarly prepared to invest some of their own funds to pump-prime EU-funded track improvements in return for lower and sta-ble track access charges?

Railway industry needs to take respon-sibility for its future

if Poland’s railways are to escape from their straightjacket, the railway industry itself needs to take responsibility for its own future and embark on a massive communications campaign to inform all stakeholders and decision makers of the role that rail should be playing in the future development of the country. The UK and Germany have shown the way with Transport 2000 and Allianz pro Schiene, now it is Poland’s turn. �

Andrew Goltz

Andrew Goltz is the driving force behind the setting up of a new pro-rail advocacy group, ‘Fundacja Pro Kolej’ (‘Pro Rail Foundation’). In this article he puts forward his own personal views on what is wrong with Poland’s railways and suggests how matters could be put right.

Tab. 3. Intermodal share in railway markets across the EU

Source: Source: Polish Office of Rail Transportation & EUROSTAT (2010)

from the state and regarded for all intents and purposes as a commercial enterprise. in return the World Bank provided PKP with a USD 101 mln credit facility to cover the costs of restructuring.

Meanwhile Poland was negotiating its accession to the EU. European commis-sion officials have their own ideas as to how to reform Europe’s railways. competition is seen as the key and officials have been pushing for a separation of infrastructure management from train operation. The railway infrastructure could, and should be subsidised by the state, in the same man-ner as the road network. Train operating companies should operate free of state sub-sidy, and as far as freight and international


Logistics

Globally, transports between the North-American East coast/Europe and Asia are carried out by sea. Regionally, east-west car-

riages between Norway and Russia utilize the road system and to some extent also sea services. The existing railway system in Nor-way, Sweden, Finland and Russia is more or less underexploited when it comes to east-west crossings. Though the distance by rail is shorter, travel time reliability as well as pric-ing are crucial in order to make rail an attrac-tive mode for several origins and destinations.

The NEW-CorridorThe project was originally a Futurum ini-

tiative, developed several years ago by the Nor-wegian consultancy firm Transportutvikling AS. The idea was to create an intermodal trans-port system between Asia and North America through the Port of Narvik, while improving transport solutions for the north of Nordics at the same time. The ‘NEW-corridor’ has gained international acclaim and during the past years several organizations have tried to develop transport corridors based on similar concepts.

currently, within BGcL’s framework, we are focusing on the development of railway

Narvik-Russia rail corridor

Giving the North a rail push

connections between Norway and Russia through Sweden and Finland. Much help comes from Norrbotten county (the north-ernmost part of Sweden) as well as from the Finnish ports of Kokkola and Pori as well as the region of Kainuu, which borders Russia.

A cogwheel in a bigger machineryFirst of all, the transport solution we are

talking about is a container-based railway corridor between Norway and Russia (and further eastbound Asia). But also it is an At-lantic Ocean route linked to an intermodal transport system via the Port of Narvik. commodities can be carried across the en-tire distance or on route-sections, e.g. like Norway-Russia or Russia-Sweden/Finland.

Due to the situation in many countries, the railway section will probably be oper-ated by national carriers like Russian Rail-ways, VR in Finland, Norwegian cargoNet and Green cargo in Sweden. Further east carriers like Temir Zholy in Kazakhstan and china Railways may be a part of the logistical chain, too.

The main advantages of this east-west connection are its potential speed (compared with deep-sea carriages) and environmental

East-west rail freight transports crossing the North Calotte (the northern areas of Norway, Sweden and Finland) have been discussed and studied for years. There are logistics concepts like the ‘NEW-Corridor’ as well as mar-ket studies and analyses of terminal structures. But so far no regular operations are up and running. That’s why Futurum, a Norwegian business development firm, together with Swedish and Finnish partners from the Both-nian Green Logistics Corridor project (BGLC), have taken steps to revitalize this promising transport alternative.

benefits (compared with truck transports). Goods going via the corridor may also avoid bottlenecks occurring in ports and on roads. This may be especially promising in light of the impending stricter sulphur regulations in 2015, since the Port of Narvik will be lo-cated outside the so-called Emission con-trol Areas.

it is also important to underline that the railway infrastructure is already in place and consequently no huge infra investments are required. it is simply a matter of linking separate sections in Norway, Sweden, Fin-land and Russia altogether.

The fish route?Huge fish transports from Norway are

an obvious option for the Narvik-Russia rail section (the Russian Federation is becoming the largest importer of Norwegian salmon). Exports of Liquefied Natural Gas from Nor-way and imports of forest products are an opportunity as well. The latter commodities will most probably be more suited for ini-tial consignments, as reefer facilities have to be further developed along the railway sec-tion. Dry bulk and general cargo are also the main products to be found on most of the

Logistics


trade lanes along the corridor. For instance, such goods as textiles, furniture, toys, shoes, gifts, etc., can be shipped on railroads from

china, while back-haul cargo can consist of various consumer commodities, raw mate-rials, inputs for production and so forth.

Naturally, most new, innovative and in-termodal transport concepts face challenges. But every problem can be overthrown if we dispose a sufficient amount of time, skilful men and appropriate resources. The existing routes and alternatives have been in operation for many years. Transport companies and customers need time to adapt to new solu-tions. There are also a few technical challenges like the gauge break in Haparanda/Tornio and in this case more effective reloading services are necessary. There are also challenges con-nected to the competitive environment, like railway monopolies and political priorities. Nonetheless, market conditions and particu-larly back-haul cargo from Russia/Far East to the Norwegian transhipment point in Narvik are the most important issues to work on.

Futurum, together with BGcL’s part-ners, is now undergoing market evalua-tions and technical & commercial railway studies in Finland. We are also supporting the improvement of terminal operations in Haparanda. Futurum believes that condi-tions are favourable and the intention is a stepwise development of a successful trans-port solution along this east-west axis. �

Edel StorelvmoManaging Director at Futurum AS


Collector’s corner

Exceptional in both artistic and educa-tional terms. Each coin is a real work of art. They also serve as a page out of a textbook. Altogether the Danish coins

shape public opinion and maybe, who knows, characters of many individuals. Reverses of the coins say: “we, the people of Denmark, are a great maritime nation”, while young people can read it their own way: “shipping is very interest-ing and promising as a future occupation.”

it should be mentioned that the Danish thematic coins are democratic as collectibles. All were minted in editions between 0.7-1.2 million. The total number of ship coins thus amounts to about 11.8 mln (“about” because the Royal Mint didn’t give the figures for the last two pieces, so we estimate their number at 0.7 mln each, since No. 10 was released in such a quantity). The 20-krone coins circulate in Danish pockets in approx. 122 mln pieces; therefore, the ship coins constitute around 9.5% of the mentioned face value. Additionally, each coin was minted in very fine proof quality but in an edition limited to just 1,500.

The series presents 13 vessels (one coin in-cludes two boats), of which 10 are non-anony-mous and eight still exist. Five are operational (including the 150-year old steamer Hjejlen), three are under care of Danish museums but Havhingsten – a replica of a Viking longship – is also a sailing boat. Presenting umiak, a skin-covered boat from Greenland with roots deep in the Stone Age, and the container ship Emma Mærsk, a symbol of the 21st century, the series depicts a broad selection of mari-time history, not only Danish.

Reverses are crafted by 10 sculptors, whilst only one of them is entitled as a professional medallist. Such diversity of artists promises a richness of forms and a variety of contents. Often we note the personal touch of people who know the sea at least as passengers, in ad-dition to knowing their model subject; how-ever, (sadly) none of the artists who wrote comments about their work mentioned has yachting or boating experience.

We especially appreciate two reverses – with Selandia and Havhingsten. Both coins were minted in 2008 as No. 3 and 4. Selandia, the first ocean-going vessel powered by a diesel engine, is depicted in a very technological (one can even say an “architectural”) style. Sculp-tor Torben Ebbesen repeated the silhouette

Heritage in every Danish wallet

In December 2012, the Danish Royal Mint completed a series of 12 coins with ships and boats as motifs. Beyond all doubt, it is the world’s best ever collection of thematic coins devoted to ships and released for everyday circulation.

symbolising her sisterships or worldwide fol-lowers. An arrow of straight waves shows their speed at sea and rings over the ships suggest that we’re looking into an engine’s cylinder which is engraved in the bottom of the reverse. Ebbesen also engraved more conventional work presenting the midship of Emma Mærsk – it is presented as seen through a porthole.

The longship Havhingsten (‘sea stallion’) coin was crafted by Erik Varming. When look-ing at it you almost feel the rough materials from the brutal Viking times – a sail made of homespun yarn and planking of torn wood. The Roskilde cathedral symbolises the place where five Viking boats were excavated and now form the core collection of Vikingeskibs-museet (the Viking Ship Museum).

On the other hand, Henrik Wiberg (the sole artist specialized as a medallist) made his coins realistic, not to say – photographic. Such an approach leaves very little to the imagina-tion, yet it shows a dose of respect towards royalty and tradition by paying attention to every detail. The same motif is repeated on the 500-krone silver coin with an addition of Queen Margrethe’s ii monogram. Wiberg also created a motif of Hjejlen – a sidewheeler from the lakes of Silkeborg. Both coins show his jeweller’s qualifications – the rails on both ships are absolutely realistic, but it seems that in the case of Hjejlen, rails and pillars of the tent dominate the relief.

At the beginning we noted that coins can be quite informative. For instance, the motif with the fishing boat Skjold (artist Margrete Sørensen) includes the sun rising over the coast of Jutland. it tells us that the boat is steaming NW to fishing grounds of the North Sea and that fishermen used to wake up very early… A cargo vessel passing Lightship XVII (by Karin Lorentzen) brings the sense of ser-vice the model carried out. Seagulls along the ferry Kong Frederik IX (Elisabeth Toubro) bring to mind their real cries, but we would discuss the reality and lawfulness of the open bow visor – it could and should only be seen open within a port (naturally, according to safety regulations).

Nonetheless, the richest in details is the in-auguration coin from 2007 by Øivind Nygård, depicting the contemporary naval frigate Vædderen (the ram). A world map with the route of the vessel, a turtle (in the waves) and

two micro-organisms (one in the top of the re-verse and the second by the stern of the ship) and the Aries constellation informs altogeth-er that circumnavigation by Vædderen was not a military, but a scientific mission.

All in all, the covered collection was care-fully masterminded. it aimed to highlight var-ious branches of Danish shipping over time but it still leaves ship-loving collectors unsat-isfied (though who could satisfy those ever-hungry people?). Two branches seem to be the most overlooked – rescue service and offshore oil mining. But, anyway, hats off! �

Marek Błuś

Transport miscellany


Vabis (1.5 tonnes) was Swedish Post’s first ever lorry… and the last model of the company founded in 1891. This picture was taken in Gothenburg in 1911 just before the merger of Vabis and Scania. imagine driving such a car – wooden rims, low-profile tyres (we mean really low-profile), no front windshield, kerosene-powered lights… As one American football player stated some time ago, “it’s not a game for little girls.”

A picture from July 1929 shows the very moment of catapulting a Heinkel HE 12 mail aircraft from NDL’s liner Bremen. it happened about 400 kilometres from New York during the ship’s maiden and record-breaking voyage (Bremen won the Blue Rib-and – an unofficial accolade given to a pas-senger liner crossing the Atlantic Ocean in regular service with record-setting speed). The sea-air postal service cut down deliver-ies by one day on its westbound and two days on its eastbound (usually 5 days) trips, but due to weather it worked well only in sum-mer. in 1932-33 Heinkel’s planes on Bremen and Europa were substituted by Junkers Ju 46 with a range of 1,000 km. in September 1935, a joint venture of NDL and Luft Han-sa halted the whole idea due to high costs.

in the previous edition of our column we mentioned old ferries serving Estonian islands and now it is high time to present new ones. Thanks to their modern driving facilities on both ends, they can also be used as carousels. The depicted Saaremaa is turning anticlockwise after its naming ceremony in 2010. What a great idea for a family day! “Make it go faster, dad! Faster!”

At the very beginning of Transport miscellany we often presented coats of arms with maritime motifs. coming back to this humble tradition, we’ve dug up something special. it seems that the Norwegian town Flekkefjord, the westernmost municipality of Sørlandet, has an unusual set of colours

used to depict a pilot boat at sea. One thing remains mysterious, though, i.e. the black stripes on the largest sail. Does it have any symbolism or is it just an artist’s impression? Any clues?

Hard-core lorry

Now, we know that the past two BTJ Collector’s corners were devoted to the Titanic; nonetheless, we must tell you about this fine piece of mintage. Here we have an exonumia (items other than coins) minted to mark Titanic’s disaster. The

“Super crown Sized Titanic commemorative” from the Dublin Mint Office seems extremely interesting not only because of its 88 mm diameter but also its 24 carat gold layer. The motif on the reverse is the same as on Tristan da cunha’s ten and one crown coins (they have face values instead of a date). The inscription – a unique feature – includes two distress signals in the Morse code: cQD on the top and SOS at the bottom.

Titanic around every corner Row, row, row your boat!

Sea-air mail catapult

Maritime coat of arms

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Who is who

RUNE TORHAUGHead of DNV Research and Innovation

Det Norske Veritas has appointed Rune Torhaug as the society’s new Managing Di-rector of its Research and Innovation unit. Torhaug has an M.Sc. in Civil Engineering from the Norwegian University of Science and Technology and a Ph.D. in structural engineering from Stanford University. “I firmly believe that technology is a vital part of the solution for many of the global challenges facing us today,” Torhaug com-mented on his mission at DNV.

ALAN LONGChairman of the EPCSA

The European Port Community Systems Association will now be chaired by Alan Long, Managing Director of Felixstowe-based Maritime Cargo Processing. Long has 30 years of experience working in the Port Community Systems industry. In January 1983 he was part of the UK Customs project team that helped to lay the foundations for FCP 80, the prede-cessor of MCP.

The sun is new each day

VLADIMIR YAKUNINChairman of UIC

The General Assembly of the International Union of Railways has chosen Vladimir Yakunin, the President of Russian Railways, to chair the Union. During his rich scientific and business career (he also served in the army), Yakunin worked, among others, as head of department at the Ioffe Physical-Technical Institute of the Russian Academy of Sciences, first deputy to the Russian Min-ister of Railways and as a visiting professor at the Stockholm School of Economics.

MUSTAFA MUHTAROĞLUIBIA’s newest board member

The International Bunker Industry Associa-tion has appointed the founding chairman of the Turkish Bunker Association, Mustafa Muhtaroğlu, as its newest board member. Muhtaroğlu graduated from the Faculty of Economics at the University of Istanbul where he also obtained an MBA in the same field. Among others, Muhtaroğlu formed ACM Energy in 1993 and four years later he founded his own physical bunker supplier firm, Energy Petrol.

PHILIP MAGUIREVP at Wärtsilä Quality

Philip Maguire, B.Sc. (Hons) in Electrical and Electronic Engineering, has been appointed Vice-President of Wärtsilä Quality, where he will be responsible for the company’s group-wide quality pro-gramme and quality organisation. Magu-ire will also be a member of the Wärtsilä PowerTech management team. Maguire joins Wärtsilä from Tetra Pak where he de-veloped and executed a quality accelera-tion programme.

ALEXANDER MISHARINVP of RZD

Russian Railways has appointed Alexan-der Misharin, the former governor of the Sverdlovsk Oblast, as its new Vice-Presi-dent as well as head of Skorostnye Mag-istrali (High-Speed Mainlines, a subsidiary of RZD). Misharin has a vast educational background in railway transportation and economics – he defended his Ph.D. thesis in railway computerization efficiency. He worked as Deputy Transport Minister and was also in charge of the government’s Industry and Infrastructure department.

MARIOLA HOLA-CHWASTEKCTL Logistics’ newest board member and CFO

Mariola Hola-Chwastek has been linked with CTL Logistics since 1998. She was head of CTL Maczki-Bór’s accounting & control-ling office till 2003. In 2010, she returned to the company as member of the board and Chief Financial Officer at CTL Maczki-Bór. Mariola Hola-Chwastek also worked as CFO for MCS and for the CEE region at Schoeller Arca Systems as well as led the economic-administration department at PTKiGK.

STEFAN NERPINDNV’s new VP of communications and external relations

Det Norske Veritas has chosen Stefan Ner-pin to be the Group’s new Vice-President responsible for corporate management, development and alignment of corporate & digital communications, branding, media relations and public affairs. Stefan Nerpin holds a degree in business management from the University of Lund and previously worked as group head of marketing com-munications at Vattenfall and SEB.

Attend and exhibit at Breakbulk Europe - Europe’s largest gathering for heavy-lift, project cargo and breakbulk cargo transportation.

leading specialized carriers, forwarders, ports, and terminals and service providers.

More than 5000 breakbulk & project cargo shippers, forwarders and service providers will attend Breakbulk Europe. What do they know that you don’t?

The Antwerp Expo, Antwerp, Belgium14-16 MAY 2013

ATTENDThe Breakbulk Europe Conference is the largest conference in Europe focused on traditional breakbulk and project cargo trade and transportation issues. This conference has nearly doubled in size each year since its inception, an indication that there is a great need for education and networking in this market. During this conference, shippers have the opportunity to learn about breakbulk and project cargo issues as they relate to European trade and to meet with specialized carriers, ports, terminals, freight forwarders, equipment companies and packers. Conference program includes education sessions as well as networking functions and an exhibit hall.

EXHIBITIf you market to a highly targeted audience of senior transportation managers, you’ll want to explore the

in-demand Breakbulk event.

Becoming a highly visible exhibitor at Breakbulk Europe is a prime opportunity to:· Elevate your company above the competition· Heighten your global brand recognition· Remind your customers of your market presence· Generate sales

· Announce a new product or service· Have face-to-face contact with potential customers· Entertain clients

SPONSORSponsoring at the Breakbulk Europe Conference & Exhibition provides a strong in-person connection for companies who are interested in aggressively marketing their services to European Project, Heavy-Lift, RoRo and/or Traditional Breakbulk decision makers in 2013. Sponsorships range in pricing and are customized to meet the needs of companies who are looking for lead generation and/or brand awareness.

Sponsorship opportunities include:· Metal Sponsorships· Welcome Reception/ Luncheons· Golf or Bike· Equipment or Product Promotion· Registration Area· Hospitality Suites· Live Webcast on the Show Floor· Educational Sessions· Marketing Material Distribution· Program Guide & Breakbulk Magazine Advertising

TO ATTEND: Visit www.breakbulk.com for additional information and to register.

TO EXHIBIT OR SPONSOR:EUROPE: Contact Adrian van Beuningen at +32-2-808-4355 or [email protected] & SOUTH AMERICA: Contact Christian Thompson at +1-281-416-4672 or [email protected]: Contact Gary Tang at +852.2585 6199 or [email protected]

Attend and exhibit at Breakbulk Europe - Europe’s largest gathering for heavy-lift, project cargo and breakbulk cargo transportation.

leading specialized carriers, forwarders, ports, and terminals and service providers.

More than 5000 breakbulk & project cargo shippers, forwarders and service providers will attend Breakbulk Europe. What do they know that you don’t?

The Antwerp Expo, Antwerp, Belgium14-16 MAY 2013

ATTENDThe Breakbulk Europe Conference is the largest conference in Europe focused on traditional breakbulk and project cargo trade and transportation issues. This conference has nearly doubled in size each year since its inception, an indication that there is a great need for education and networking in this market. During this conference, shippers have the opportunity to learn about breakbulk and project cargo issues as they relate to European trade and to meet with specialized carriers, ports, terminals, freight forwarders, equipment companies and packers. Conference program includes education sessions as well as networking functions and an exhibit hall.

EXHIBITIf you market to a highly targeted audience of senior transportation managers, you’ll want to explore the

in-demand Breakbulk event.

Becoming a highly visible exhibitor at Breakbulk Europe is a prime opportunity to:· Elevate your company above the competition· Heighten your global brand recognition· Remind your customers of your market presence· Generate sales

· Announce a new product or service· Have face-to-face contact with potential customers· Entertain clients

SPONSORSponsoring at the Breakbulk Europe Conference & Exhibition provides a strong in-person connection for companies who are interested in aggressively marketing their services to European Project, Heavy-Lift, RoRo and/or Traditional Breakbulk decision makers in 2013. Sponsorships range in pricing and are customized to meet the needs of companies who are looking for lead generation and/or brand awareness.

Sponsorship opportunities include:· Metal Sponsorships· Welcome Reception/ Luncheons· Golf or Bike· Equipment or Product Promotion· Registration Area· Hospitality Suites· Live Webcast on the Show Floor· Educational Sessions· Marketing Material Distribution· Program Guide & Breakbulk Magazine Advertising

TO ATTEND: Visit www.breakbulk.com for additional information and to register.

TO EXHIBIT OR SPONSOR:EUROPE: Contact Adrian van Beuningen at +32-2-808-4355 or [email protected] & SOUTH AMERICA: Contact Christian Thompson at +1-281-416-4672 or [email protected]: Contact Gary Tang at +852.2585 6199 or [email protected]

+ Directly connected to the Deepwater Container Terminal (DCT) in Gdańsk+ Unique possibility for built-to-suit warehouse, production and offi ce space+ Excellent multi-modal national and international transport connections+ Total development area of 110 ha

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